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2025 06 17 CC Minutes & HA Special MtgCITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING MINUTES TUESDAY, JUNE 17, 2025 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA Councilmember Fitzpatrick said she will comment on Consent Calendar Item No. 8. Mayor Evans said City Attorney Ihrke will provide a verbal announcement on Consent Calendar Item Nos. 8 and 9 regarding the salaries and fringe benefits of the City's executive employees pursuant to Government Code § 54953(c)(3) [Brown Act]. Mayor Evans said she will comment on Consent Calendar Item No. 2. City Clerk Radeva said a HAND-OUT was distributed noting typographical corrections on pages 211 and 216 of the agenda packet, under Consent Calendar Item No. 8, related to the adoption of the proposed fiscal year 2025/26 Salary Plan/Schedule. Council concurred. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CARLA TRIPLETT, HUMAN RESOURCES DEPUTY DIRECTOR; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES' ASSOCIATION, AND UNREPRESENTED EMPLOYEES 2. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6, CITY DESIGNATED REPRESENTATIVE: BILL IHRKE, CITY ATTORNEY; AND UNREPRESENTED EMPLOYEE — CITY MANAGER MINUTES Page 1 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING 3. 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 4. 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) 5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY LOCATED ON HIGHWAY 111 EAST OF DUNE PALMS (APN 600-020-057) CITY NEGOTIATOR: JON MCMILLEN, CITY MANAGER PROPERTY OWNER: CITY OF LA QUINTA NEGOTIATING PARTIES: SUNRIDGE PROPERTIES; THE PACIFIC COMPANY UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT 6. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) of GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: People ex rel. The City of La Quinta v. Langdon (Coordinated Courts, Desert Judicial Dist., Riverside County, Case No. MIIN2502554-1) COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3: 05 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:04 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 — labor negotiations have concluded; the item considered under Government Code Section 54957.6 included the Classification Plan MINUTES Page 2 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING and Salary Schedule/Plan for represented and unrepresented employees; and Council will consider these matters during the Open Session portion of the meeting under Consent Calendar Item No. 8 on tonight's agenda; • CLOSED SESSION ITEM NO. 2 — labor negotiations have concluded; the item considered under Government Code Section 54957.6 included Amendment No. 2 to employment agreement for the City Manager unrepresented employee; and Council will consider this matter during the Open Session portion of the meeting under Consent Calendar Item No. 9 on tonight's agenda; • CLOSED SESSION ITEM NO. 3 — 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. Mr. Ihrke noted that a brief summary of the bankruptcy proceedings status for SilverRock Development Company and its affiliates will be provided under the Announcements, Presentations, and Written Communications section of the agenda, as Presentation Item No. 1. • CLOSED SESSION ITEM NO. 4 — no reportable action; • CLOSED SESSION ITEM NO. 5 — no reportable action; and • CLOSED SESSION ITEM NO. 6 — no reportable action. PLEDGE OF ALLEGIANCE — CITY COUNCIL AND HOUSING AUTHORITY Councilmember/Authority Member Fitzpatrick led the audience in the Pledge of Allegiance. CALL TO ORDER — HOUSING AUTHORITY SPECIAL MEETING A special meeting of the La Quinta Housing Authority was called to order at 4:06 p.m. by Chairperson McGarrey. CHAIRPERSON McGARREY ASKED MAYOR EVANS TO ACT AS PRESIDING OFFICER FOR THE HOUSING AUTHORITY FOR THE REMAINDER OF THE SPECIAL MEETING; MAYOR EVANS CONCURRED AND ASSUMED PRESIDING OFFICER RESPONSIBILITIES ROLL CALL: Authority Members Evans, Fitzpatrick, Pena, Sanchez, and Chairperson McGarrey VERBAL ANNOUNCEMENT — AB 23 [AUTHORITY SECRETARY] MINUTES Page 3 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING CONFIRMATION OF AGENDA — HOUSING AUTHORITY — Confirmed PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — CITY COUNCIL AND HOUSING AUTHORITY PUBLIC SPEAKER: Mary Mann, La Quinta — opposed the location of the bighorn sheep fence being installed at the Club at Coral Mountain development (located south of Avenue 58, north of Avenue 60, and east and west of Madison Street), pursuant to Amendment No. 5 to Specific Plan 2003-067; believes the fence cuts off public access to the open land; and said Council can help by working with the developer and adjacent landholders to arrange for outdoor recreation in this unique landscape feature. PUBLIC SPEAKER: Jeff Fishbein, Chair of the La Quinta Chamber of Commerce, Coldwell Banker Realtor, and La Quinta resident — thanked the City for its collaboration and renewal of the agreement with the Greater Coachella Valley Chamber of Commerce (GCVCC) for professional promotional services; noted the La Quinta State of the City is scheduled for September 2025; provided an update on recent events, including the 2025 GCVCC Annual Installation and Business Awards Dinner, ribbon cutting at Rosati's Pizza; and the upcoming 1 st Annual Membership Appreciation Mixer scheduled for July 2, 2025, at the Acrisure Arena in Palm Desert. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS — CITY COUNCIL 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. As previously announced, pursuant to the U.S. Bankruptcy Court -approved Bid Procedures (March 2025), the Chief Restructuring Officer (CRO) retained Jones, Land, LaSalle (JLL) to provide professional marketing services for the project to secure a future developer; multiple meetings have been held pursuant to the Bid Procedures between the debtors, CRO, City, and their respective representatives in connection with prospective developers and financing teams for what is knows as a "stalking horse," which in the bankruptcy context generally means a party that is incentivized to submit a bid to buy the debtors' estate. On June 5, 2025, the debtors filed a Motion to Approve the Debtors' Selection of a Stalking Horse and related relief and "Proposed Order," identifying TBE RE Acquisition Co II LLC (an affiliate of Turnbridge Equities) as the potential stalking horse. This morning, June 17, 2025, the Bankruptcy Court held a hearing and granted the motion. MINUTES Page 4 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING In summary, the stalking horse proposal includes: • Purchase price of debtors' assets at $60 million; • Acquisition of the approximately 130+ acres held by the debtors; • Break-up fee of $2 million, payable if Turnbridge is not selected as successful bidder or as otherwise set forth in the Proposed Order; • Target closing date set for November 12, 2025. At the June 17, 2025, hearing, testimony was provided by representatives of the debtors that, among other facts relating to the selection of a stalking horse, is summarized as follows: (1) experts in recruiting hotel resorts and related luxury homes and facilities were retained and consulted to market this project opportunity, (2) the best way to maximize value from the sale of the debtors' assets meant to sell the entirety of the debtors -held properties together as one project, (3) having the City's support of a selected stalking horse was critical because the City has project approval authority and owns the surrounding property, and (4) there were five stalking horse offers, and the one selected was, in the debtor's business judgment, the highest and best bid, and would be a good "road map" for any other bidders to potentially work with the debtors and City to submit any overbids by the deadline scheduled for the end of July 2025. There were objections filed by a couple of the creditors who hold secured interests over some portions of debtors' property, generally voicing concern over the offered purchase price of the debtors' assets. The debtors responded by noting a proposed sale price is, for purposes of the stalking horse motion, a starting point for potentially higher bids and offers as part of the "overbid" process. The Bankruptcy Court noted a recent U.S. Supreme Court case that decided the purchase price offer for assets in bankruptcy is a correct indication of valuation of the debtors' assets. In its ruling, the Bankruptcy Court noted that, while other bidders may have participated, the Court accepted testimony from the debtors, that it had sufficiently exercised its business judgment, that this offer is the highest and best bid at this time, and that it is important to have the City's support of the selected stalking horse, so that the process may move forward. In conclusion, Mr. Ihrke noted that: (1) being selected as a stalking horse is not a guaranty that this party will ultimately be the successful bidder or developer, as the Court -approved process allows for other potential buyers and developers, called "overbidders," to submit bids according to the Court -approved Bid Procedures' deadlines; and (2) the approval of a stalking horse is not an approval of the sale of the debtors' assets, as that decision will be considered by the Bankruptcy Court at a later time, per the Bid Procedures. 2. CERTIFICATE OF APPRECIATION FOR OUTGOING FINANCIAL ADVISORY COMMISSIONER GEORGE BATAVICK Mayor Evans commended Mr. Batavick for his dedicated public service and contributions; noted he began his services in 2015 on the former Investment Advisory Board; provided a historic overview of the community participation, research, and efforts that lead to the 2016 voter -approved Measure G, a 1 % sales and use tax, to which Mr. Batavick's contribution MINUTES Page 5 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING was imperative; his service to Find Food Bank and One Future Coachella Valley; his forward - thinking recommendation regarding City reserves; and his focus on meeting the City's pension obligations. Councilmembers thanked Mr. Batavick for his commitment, dedication, excellent advice, and exemplary service of him, and his wife Ellen to the community. Commissioner Batavick expressed his gratitude to his wife Ellen; for the opportunity to serve under two City Managers and three Finance Directors; for his talented fellow Commissioners; and said it was a privilege and an honor to serve. Council presented a Certificate of Appreciation to outgoing Commissioner Batavick in appreciation and gratitude of his services and contributions to the community. 3. INTRODUCE NEW AND PROMOTED CITY STAFF MEMBERS City Manager McMillen introduced the following new City employees: Employee Name Harold Contreras Borgetti Edgar Lopez-Contez Elmer Vasquez Gamez Jerry Mejia Luis Urias Title Maintenance & Operations Worker Maintenance & Operations Worker Maintenance & Operations Worker Maintenance & Operations Worker Maintenance & Operations Worker Department Public Works/Streets Public Works/Streets Public Works/Parks Public Works/Streets Public Works/Streets Council welcomed the new employees into the La Quinta family gratitude for their service. and BUSINESS SESSION — CITY COUNCIL AND HOUSING AUTHORITY expressed their 1. INTERVIEW AND APPOINT RESIDENTS TO SERVE ON VARIOUS CITY COMMISSIONS Council and Authority waived presentation of the staff report, which is on file in the Clerk's Office. Mayor Evans thanked all applicants for their willingness to serve the City and explained the process for conducting interviews and appointing members. A. FINANCIAL ADVISORY COMMISSION The following applicants gave a brief presentation of their experience and qualifications: • Bryan Davis • Philip Niblo MINUTES Page 6 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING Results of the ballot vote: Councilmember Fitzpatrick: Bryan Davis Councilmember McGarrey: Phillip Niblo Councilmember Pena: Phillip Niblo Councilmember Sanchez: Phillip Niblo Mayor Evans: Bryan Davis MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Sanchez to appoint Phillip Niblo to serve on the Financial Advisory Commission for a full three-year term from July 1, 2025, to June 30, 2028. Motion passed unanimously. ts. HOUSING COMMISSION The following applicants gave a brief presentation of their experience and qualifications: • Brian Hanrahan application withdrawn June 17, 2025 • Yesenia Hernandez • James Lewis (Tenant + 62 years of age) • Emmanuel Sanchez • Jai Singh Results of the ballot vote: Authority Member Evans: James Lewis Authority Member Fitzpatrick: James Lewis Authority Member Pena: Yesenia Hernandez Authority Member Sanchez: James Lewis Chairperson McGarrey: James Lewis MOTION — A motion was made and seconded by Authority Members Fitzpatrick/McGarrey to appoint James Lewis to serve on the Housing Commission for a one-year term from July 1, 2025, to June 30, 2026. Motion passed unanimously. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 5:20 PM. MAYOR EVANS RECONVENED THE REGULAR COUNCIL MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING AT 5:26 P.M. WITH ALL MEMBERS PRESENT C. PLANNING COMMISSION The following applicants gave a brief presentation of their experience and qualifications: • Linda Bohlinger • Jason Dafforn application withdrawn June 17, 2025 • Veronica Flores • Robert Millar • Emmanuel Sanchez • Andrew Sincosky MINUTES Page 7 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING • Jai Singh • John Thekkathala application withdrawn June 17, 2025 • Austin Wasserman was not present for interviews Results of the ballot vote: Councilmember Fitzpatrick: Linda Bohlinger Councilmember McGarrey: Linda Bohlinger Councilmember Pena: Linda Bohlinger Councilmember Sanchez: Robert Millar Mayor Evans: Robert Millar PUBLIC SPEAKER: Mary Mann, La Quinta — thanked all applicants for their willingness to serve, and noted the complexity and importance of their work, and taking residents' comments into account; and said open space and recreational land uses need to be prioritized. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/McGarrey to appoint Linda Bohlinger to serve on the Planning Commission effective June 17, 2025, to fill an unexpired term ending June 30, 2027. Motion passed unanimously. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2025/26 LA QUINTA HOUSING AUTHORITY BUDGET [RESOLUTION NO. HA2025-003] Authority Treasurer Martinez introduced Finance Manager Ortega who presented the staff report, which is on file in the Clerk's Office. The Authority discussed the need for additional affordable housing, the use of Authority funds to aid the City's commitment in addressing affordable housing needs by making significant investments in its housing projects, identifying future affordable housing projects, and increasing funding to homelessness programs. MOTION — A motion was made and seconded by Chair McGarrey/Authority Member Pena to adopt Resolution No. HA 2025-003 approving Fiscal Year 2025/26 Housing Authority Budget as presented: A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING FISCAL YEAR 2023/24 BUDGET Motion passed unanimously. ADJOURNMENT — HOUSING AUTHORITY There being no further business, a motion was made and seconded by Authority Members Fitzpatrick/McGarrey to adjourn the Housing Authority special meeting at 6:31 p.m. Motion passed unanimously. MINUTES Page 8 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING »> Taken out of agenda order PUBLIC HEARINGS 1. ADOPT RESOLUTION TO CONFIRM THE ASSESSMENT AND DISTRICT DIAGRAM FOR THE 2025/26 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 (L&LAD 89-1) [RESOLUTION NO. 2025-018] Maintenance and Operations Superintendent Hansen presented the staff report, which is on file in the Clerk's Office. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 6:34 P.M. Council discussed the City subsidizes the maintenance cost shortfall of the L&L AD 89-1 because the $35.60 per parcel collected since 1997 does not generate sufficient funds to cover maintenance costs; the $35.60 assessment stays the same year after year and does not adjust for inflation or rising costs; and raising the assessment would require a ballot measure approval by two-thirds of La Quinta voters, and if the measure were to fail, the assessment would be reduced to zero with 100% of the cost drawn from the City's general fund. PUBLIC SPEAKER: None MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 6:35 P.M. MOTION — A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to adopt Resolution No. 2025-018 confirming the assessment and district diagram for the Landscape and Lighting Assessment District 89-1 for fiscal year 2025/26, pursuant to the Engineer's report: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 2025/2026 LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 (PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972) Motion passed unanimously. 2. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2025/26 THROUGH 2029/30 CAPITAL IMPROVEMENT PROGRAM (CIP) [RESOLUTION NO. 2025-019] Administrative Technician Escarrega and Public Works Director / City Engineer McKinney presented the staff report, which is on file in the Clerk's Office. Council discussed the Bear Creek Trailhead Restroom Project No. 2024-09, formerly tracking the Welcome Center improvements project for which funding was allocated in fiscal year 2024/25; the City of Indio delaying the schedule for the Avenue 50 Widening Improvements Project No. 2022-05 (from Jefferson St. to Madison St.), currently in design of the right-of-way portion of the project, which is expected to begin construction in 2026; the Highway 111 pavement rehabilitation project timeline, expected to begin July 14, 2025 MINUTES Page 9 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING starting on the west side of the street, and related signage regarding this upcoming project; and the City's 5-year CIP and related funding. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 6:45 P.M. PUBLIC SPEAKER: None MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 6:45 P.M. MOTION — A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to adopt Resolution No. 2025-019 approving the 2025/26 through 2029/30 Capital Improvement Program as recommended: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE FISCAL YEAR 2025/2026 THROUGH 2029/2030 CAPITAL IMPROVEMENT PROGRAM Motion passed unanimously. CONSENT CALENDAR — CITY COUNCIL 1. APPROVE COUNCIL MEETING MINUTES DATED JUNE 3, 2025 2. EXCUSE ABSENCES OF (1) COMMISSIONER BROWER FROM THE JUNE 9, 2025, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY METING, AND (2) COMMISSIONER HERNANDEZ FROM THE JUNE 10, 2025, PLANNING COMMISSION MEETING 3. AUTHORIZE OVERNIGHT TRAVEL FOR MAYOR, FOUR COUNCILMEMBERS, CITY MANAGER, DIRECTOR OF BUSINESS UNIT AND HOUSING DEVELOPMENT, AND FINANCE DIRECTOR FOR ATTEND THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE IN LONG BEACH, CALIFORNIA, OCTOBER 8-10, 2025 4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE SENIOR MAINTENANCE AND OPERATIONS WORKER TO ATTEND YEAR ONE OF CALIFORNIA PARKS AND RECREATION SOCIETY MAINTENANCE MANAGEMENT SCHOOL IN LAKE ARROWHEAD, CALIFORNIA, NOVEMBER 3-7, 2025 5. AUTHORIZE OVERNIGHT TRAVEL FOR TWO CITY CLERK DEPARTMENT EMPLOYEES TO ATTEND THE ARMA INTERNATIONAL 2025 ANNUAL CONFERENCE OF INFORMATION AND RECORDS MANAGEMENT IN IRVINE, CALIFORNIA, JULY 24-25, 2025 6. ADOPT ORDINANCE NO. 624 ON SECOND READING UPDATING THE FIRE HAZARD SEVERITY ZONEZ PURSUANT TO GOVERNMENT CODE SECTION 51178 AND THE CALIFORNIA FIRE CODE MINUTES Page 10 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING 7. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2025/26 INVESTMENT POLICY [RESOLUTION NO. 2025-014] 8. ADOPT RESOLUTIONS TO: (A) APPROVE FISCAL YEAR 2025/26 CLASSIFICATION AND SALARY PLAN/SCHEDULE, AND (B) APPROVE AMENDMENT NO. 3 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION [RESOLUTION NOS. 2025-015 AND 2025-016] 9. APPROVE SECOND AMENDMENT TO EMPLOYMENT AGREEMENT FOR THE CITY MANAGER 10. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH ST. FRANCIS ELECTRIC FOR ON -CALL TRAFFIC SIGNAL REPAIR SERVICES 11. APPROVE DEMAND REGISTERS DATED MAY 23 AND 30, 2025 VERBAL ANNOUNCEMENT — by City Attorney Ihrke regarding City Manager and executive employees compensation: (1) Pursuant to Government Code Section 54953, subdivision (c)(3) [Brown Act], prior to the consideration or taking final action by the City Council, there must be a verbal summary of a recommendation for a final action on the salaries, salary schedules or compensation paid in the form of fringe benefits of any local agency executive, as defined by Government Code Section 3511.1, subdivision (d), during the open meeting in which the final action is to be taken; (2) Pursuant to Government Code Section 54957.1, subdivision (a)(6), and as noted during the Report on Actions(s) Taken in Closed Session section of this meeting, approval of an agreement concluding labor negotiations with represented employees pursuant to Government Code Section 54957.6, considered under Closed Session Item No. 1 on tonight's agenda, shall be reported after the agreement is final and has been accepted — labor negotiations have concluded between the City and the La Quinta City Employee Association; and (3) Closed Session Item No. 2 — labor negotiations have concluded between the City and City Manager. ITEM NO. 8 — in summary, the recommendations include adopting resolutions to approve: (a) Fiscal year 2025/26 Classification Plan and Salary Plan/Schedule, which reflects salary adjustment of 3%, effective July 1, 2025, for both represented and unrepresented employees; and (b) Amendment No. 3 to the Memorandum of Understanding (MOU) between the City of La Quinta and the La Quinta Employees' Association. MINUTES Page 11 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING The fringe benefits previously approved under the MOU for represented employees, as well as unrepresented employees include: • Citywide health benefits cap of $2,462 per month, per employee; • A $200 annual Wellness Dollar benefit per fiscal year, per employee; and • Deferred Compensation Program $50 match per pay period, per employee. The salaries for the eight management employee positions, or "local agency executives," as defined, effective July 1, 2025, are as follows: Position Proposed Salary Fiscal Year 2025/2026 City Clerk $189,575.26 Community Services Deputy Director $171,176.59 Director of Business Unit and Housing Development $189,575.26 Finance Director $189,575.26 Human Resources Deputy Director $143,591.69 Public Safety Deputy Director $171,176.59 Public Works Director / City Engineer $214,495.56 ITEM NO. 9 — in summary, the recommendation is to approve Second Amendment to Employment Agreement for the City Manager, Jon McMillen, extending the term effective July 1, 2025, through June 30, 2028, which includes: • Base salary of $310,000 commencing July 1, 2025, with an increase tied to any future Council -approved cost of living/cost of labor increases for management -level full-time City employees; and • Continuing the previously approved deferred compensation in the amount of $30,000 annually; and • Commencing July 1, 2025, a potential employer match to any compensation deferrals made by the City Manager to the City's supplemental deferred compensation plan, subject to limits under the U.S. Internal Revenue Code; and • Like all other City employees, the City Manager is eligible for the current citywide health benefits cap of $2,462 per month; a $200 annual Wellness Dollar benefit per fiscal year; and Deferred Compensation Program $50 match per pay period. This concludes the required verbal announcement, and the Council may proceed with comments and vote on the consent calendar items. CONSENT CALENDAR COMMENTS ITEM NO. 8 — Councilmember Fitzpatrick inquired about the purpose for adding the various apprentice positions to the proposed Classification Plan/Schedule. Mr. McMillen explained these positions were added to provide the opportunity for on-the-job training and experience to existing employees, when applicable, who have the skills but may lack the required qualifications to fill vacant positions. MINUTES Page 12 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING City Clerk said a HAND-OUT was distributed, as announced under Confirmation of Agenda section of this meeting, above, noting typographical corrections on pages 211 and 216 of the agenda packet, under Consent Calendar Item No. 8, related to the adoption of the proposed fiscal year 2025/26 Salary Plan/Schedule. ITEM NO. 2 — Mayor Evans said per the La Quinta Municipal Code, there are two consecutive or three unexcused absences allowed per fiscal year, after which appointment removal is triggered; Council accommodates Commissioners by excusing absences since illness, vacations, emergencies etc. occur on occasion; called attention to Planning Commissioner Hernandez for whom this will be the forth excused absence in this fiscal year, not including cancelled meetings; noted limited contribution during meetings Commissioner Hernandez does attend; stated this will be the last excused absence by Commissioner Hernandez she will support; and noted there is a vast number of qualified applicants for the Planning Commission. Mayor Pro Tem McGarrey and Councilmember Fitzpatrick explained the importance of attendance, participation, and the reliance on each Board and Commission member. Councilmember Pena suggested that the Commission Chair or Department Director speak with Commissioner Hernandez regarding his ability to attend future meetings. Mayor Evans explained the consequences if the Council does not excuse absences. MOTION — A motion was made and seconded by Councilmembers Pena/Sanchez to approve the Consent Calendar as presented, with Item No. 6 adopting Ordinance No. 624 on second reading; Item No. 7 adopting Resolution No. 2025-014; and Item No. 8 adopting Resolutions Nos. 2025-015 and 2025-016 as amended per the stated typographical corrections. Motion passed unanimously. BUSINESS SESSION — CITY COUNCIL — Continued 3. APPROVE SILVERROCK RESORT 2025/26 ANNUAL PLAN Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. PUBLIC SPEAKER: Randy Duncan, SilverRock Golf Course Director with Landmark Golf Management — answered Council's questions regarding rounds played by residents; the potential decrease in rounds played in the proposed fiscal year 2025/26 annual plan due to the temporary closure of the front 9-holes of the course in July through August 2025, and upcoming temporary closure of the back 9-holes of the course in May through June 2026, for the turf replacement; capital reserve budget and the anticipated large projects; and provided an update on current turf replacement of the front 9-holes of the course. MOTION — A motion was made and seconded by Councilmembers Sanchez/McGarrey to approve the SilverRock Resort 2025/26 Annual Plan as presented. Motion passed unanimously. MINUTES Page 13 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING 4. APPROVE AGREEMENT FOR CONTRACT SERVICES WITH AK JOHNSTON LLC. FOR SPECIAL EVENT AUDIO AND VISUAL SERVICES Senior Management Analyst Calderon presented the staff report, which is on file in the Clerk's Office. PRESENTER: Austin Johnston, CEO with AK Johnston, LLC. — said he appreciates the Council's energy and collaboration with the community; explained his company's philosophy and operating procedures not only to provide audio/visual services but rather as an experiential marketing agency with a strategic approach; the company's strong desire to service La Quinta; social media approach; event locations; solar versus generator power; site safety; staff qualifications; and offered ideas such as celebrating and thanking the community prior to large disrupting events. Council discussed events staffing, media budget; events parking coordination services; incorporating drone footage in the marketing plan for promoting events; use of clip -on microphones/speakers to help mitigate potential technical issued during performances and speeches; importance of completing events set-up timely; event videos; City ownership of all content created; knowledge and consideration of the desert's wind and dust weather events; permitting; potential residents appreciation events; and integration with City's marketing team and guidelines. MOTION — A motion was made and seconded by Councilmembers Sanchez/Pena to approve agreement for contract services with AK Johnston, LLC. for special event audio and visual services as presented. Motion passed unanimously. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 7:35 PM. MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 7:51 P.M. WITH ALL MEMBERS PRESENT 5. RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR YEAR ENDED JUNE 30, 2024 Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. PRESENTER VIA TELECONFERENCE: Calvin Kunkel, CPA, Manager, Assurance and Advisory with Lance, Soll & Lunghard, LLP (LSL) — provided auditor comments regarding the procedures and testing performed, the reports issued, and the final results of the unmodified, or clean, finding of the ACFR. Council discussed delays due to change in audit firms. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to receive and file the Annual Comprehensive Financial Report for the year ended June 30, 2024, as presented. Motion passed unanimously. MINUTES Page 14 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING 6. RECEIVE AND FILE FISCAL YEAR 2024/25 BUDGET UPDATE REPORT AND APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. MOTION — A motion was made and seconded by Councilmembers McGarrey/Fitzpatrick to receive and file fiscal year 2024/25 Budget Update Report and approve the recommended budget adjustments, as presented. Motion passed unanimously. 7. ADOPT RESOLUTION TO APPROVE FISCAL YEAR 2025/26 BUDGET AND ESTABLISH THE CITY'S APPROPRIATIONS LIMIT [RESOLUTION NO. 2025-017] Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. Council discussed having a balanced budget; budget review process; the City's sound financial position; total full-time positions; City's continued conservative budget approach; and capital improvement project carryovers. MOTION —A motion was made and seconded by Councilmembers Fitzpatrick/Pena to adopt Resolution No. 2025-017 approving fiscal year 2025/26 Budget and establish the City's appropriations limit, as presented. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ESTABLISHING THE CITY'S APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025/26 AND APPROVING A BUDGET FOR FISCAL YEAR 2025/26 Motion passed unanimously. STUDY SESSION — None DEPARTMENTAL REPORTS —All reports are on file in the City Clerk's Office. MAYOR'S AND COUNCIL MEMBERS' ITEMS Mayor and Councilmembers reported on their attendance at local graduations; Carreon Scholarship Awards Banquet; Family YMCA Desert Preschool Graduation; ribbon cutting at Rosati's Pizza, the annual Installation and Business Awards Dinner event; Hansen House at Discovery Museum; and Western River Council of Governments 34th Annual General Assembly and Leadership Address. Mayor Evans reported that College of the Desert has requested 2x2 meetings with two Councilmembers and two of their Board Members. Councilmembers McGarrey and Fitzpatrick volunteered for this assignment. MINUTES Page 15 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING 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 • COACHELLA VALLEY POWER AGENCY JOINT POWERS AGREEMENT La Quinta's representative for 2025, Councilmember Fitzpatrick reported on her participation in the following organizations' meetings: • RIVERSIDE COUNTY ANIMAL CAMPUS COMMISSION — attended on behalf of Councilmember Sanchez • RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) La Quinta's representative for 2025, Mayor Pro Tem McGarrey reported on her participation in the following organizations' meetings: • LEAGUE OF CALIFORNIA CITIES — ENVIRONMENTAL QUALITY POLICY COMMITTEE • LEAGUE OF CALIFORNIA CITIES — EXECUTIVE COMMITTEE, RIVERSIDE COUNTY DIVISION La Quinta's representative for 2025, Councilmember Pena reported on his participation in the following organization's meeting: • COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES La Quinta's representative for 2025, Councilmember Sanchez reported on his participation in the following organization's meeting: • SO. CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL COUNCIL ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Sanchez/McGarrey to adjourn at 8:55 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California MINUTES Page 16 of 16 JUNE 17, 2025 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING