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HomeMy WebLinkAbout2026 03 17 CC MinutesCITY COUNCIL MINUTES TUESDAY, MARCH 17, 2026 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:30 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor Evans ABSENT: None PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA Mayor Evans said she will comment on Consent Calendar Item No. 10 related to consideration of plans, specifications, engineer's estimate, and advertise for bid the Miles Avenue Pavement Rehabilitation Project No. 2023-01. Council concurred. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS — MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; NAME OF CASE: CONSTRUCTION LOAN SERVICES II, LLC V. SILVERROCK DEVELOPMENT COMPANY, ET AL. (U.S. District Court, District of Delaware, CASE NO. 25-1342-CFC) 3. 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) CITY COUNCIL MINUTES Page 1 of 10 MARCH 17, 2026 CITY COUNCIL MINUTES Page 2 of 10 MARCH 17, 2026 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:32 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:02 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported the following pursuant to Government Code section 54957.1 (Brown Act): CLOSED SESSION ITEM NO. 1 – no reportable action; Council’s authorization remains in place for the City Attorney, in coordination with the City Attorney’s Office and Special Counsel, to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company LLC 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 summary of the bankruptcy proceedings status for SilverRock Development Company LLC 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. 2 – no reportable action. CLOSED SESSION ITEM NO. 3 – no reportable action. PLEDGE OF ALLEGIANCE Mayor Pro Tem Fitzpatrick led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: David Dinnel, La Quinta – explained that during the March 2026 BNP Paribas Open tennis event in Indian Wells parking enforcement on his street was a problem for his cleaning crew; he has brought this issue to the City’s attention in the past, but the problem persists; has had heated arguments with police personnel the past two years when they attempted to issue parking tickets; created forms for service workers’ dashboards along with other documentation for police, but arguments and debates continue; asked that the City work with law enforcement on a permanent solution; and requested an update on an issue he brought to Council’s attention at the February 3, 2026, meeting regarding Airbnb withholding renters’ telephone numbers – City Clerk Radeva provided a status report. PUBLIC SPEAKER: Phil Walls, Public Affairs Specialist with U.S. Small Business Administration – announced that disaster assistance is available to businesses, homeowners, renters, and non-profits to cover losses; provided submission deadlines; and asked the City to help with disseminating the information to residents and businesses. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. SILVERROCK (FORMERLY TALUS) DEVELOPMENT PROJECT — STATUS UPDATE City Attorney Ihrke said on August 5, 2024, SilverRock Development Company LLC and its affiliates (debtors), collectively referred to as "SDC," voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per Council's direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. A milestone for the case was accomplished with the December 9, 2025, sale of the debtors' 130+/- acre property, formerly known as the Talus project, to Turnbridge Equities (TBE) pursuant to the bankruptcy court's order authorizing the sale ("Sale Order"). Prior Announcements regarding the bankruptcy case are available on the City's website at www.Iaquintaca.gov/talus. City Attorney Ihrke said the bankruptcy case for the debtors is ongoing. As previously announced, the bankruptcy court granted the debtors motion for an Order Authorizing a Mediation to try and reach an agreement among the key secured creditors as to the allocation and distribution of the net proceeds available from the sale of the debtors' property. The mediation had been ongoing for several weeks, but late last week, the mediators officially notified the debtors and all parties that there was an impasse, and as such, the mediation was over without a resolution as to the allocation and distribution of the sale proceeds to the key secured creditors. This means that the bankruptcy case will resume, and the bankruptcy judge will now address the matter of resolving the allocation and distribution of the proceeds from the sale of the debtors' property to the key secured creditors. This also means that the appeal in the U.S. District Court in Delaware will resume; and as previously announced, one creditor, Construction Loan Services II, LLC. d/b/a Builders Capital (Builders), filed an appeal of the bankruptcy court's Sale Order, in accordance with federal bankruptcy procedure, which was pending in the Delaware District Court. Mr. Ihrke explained that in response to Builders' appeal, the City, TBE, and debtors filed a Joint Motion to Dismiss Builders' appeal based on relevant federal bankruptcy statutes and case law. Per stipulated agreement of the parties, the briefing for Builders' appeal and the Joint Motion to Dismiss were stayed, or temporary "postponed," sot that the parties could focus on the mediation. Now that the impasse of the mediation has been declared, the briefing on the appeal and Motion to Dismiss will resume. Mr. Ihrke said it was important to note that because both, the U.S. Bankruptcy Court and the Delaware District Court, denied a prior motion brought by Builders to stay the Sale Order of the debtors' property, the new TBE project, as approved by Council will still move forward in the ordinary course, with applications and review of land use entitlements to be processed according to the operative Development Agreement, also approved by Council in 2025, and other applicable state and city laws. CITY COUNCIL MINUTES Page 3 of 10 MARCH 17, 2026 The City Manager, Special Counsel, and our office will keep the Council informed as to progress and the status of the case. 2. »> Taken out of agenda order, considered after Business Session Item No. 2 below IRONMAN 70.3 LA QUINTA TRIATHLON — DECEMBER 7, 2025, EVENT SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER MAX LITTLE 3. PROCLAMATION IN RECOGNITION OF GOVERNMENT FINANCE PROFESSIONAL WEEK — MARCH 23-27, 2026 Council thanked the La Quinta Finance Department Director Martinez and team, and presented a proclamation in recognition and observance of Government Finance Professional Week; specifically recognized the City's entire finance team for its achievements including La Quinta's ranking, since 2024, as number 7 out of 420 cities on the California Policy Center's list of fiscally healthy cities; and La Quinta being among only 10 cities to earn the highest fiscal health grade of A. CONSENT CALENDAR 1. ADOPT RESOLUTION TO REAFFIRM ADOPTION OF ANNUAL ASSESSMENTS FOR COUNTY SERVICE AREA 152, AUTHORIZE RIVERSIDE COUNTY TO CONTINUE TO LEVY ASSESSMENTS, AND INDEMNIFY AND HOLD THE COUNTY HARMLESS FOR LEVYING ASSESSMENTS ON CITY PARCELS [RESOLUTION NO. 2026-003] 2. EXCUSE ABSENCE OF COMMISSIONER BIONDI FROM THE MARCH 9, 2026, ARTS AND COMMUNITY SERVICES COMMISSION QUARTERLY MEETING AND COMMISSIONERS HASSETT AND HUNDT FROM THE MARCH 10, 2026, PLANNING COMMISSION MEETING 3. AUTHORIZE OVERNIGHT TRAVEL FOR TWO COUNCILMEMBERS TO ATTEND THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 2026 ELECTED OFFICIALS SUMMIT IN CHULA VISTA, CALIFORNIA, APRIL 29 — MAY 1, 2026 4. AUTHORIZE OVERNIGHT TRAVEL FOR ONE COUNCILMEMBER TO ATTEND THE LEAGUE OF CALIFORNIA CITIES PUBLIC SAFETY POLICY COMMITTEE MEETING IN COSTA MESA, CALIFORNIA, MARCH 27, 2026 5. AUTHORIZE OVERNIGHT TRAVEL FOR DESIGN AND DEVELOPMENT DEPARTMENT HUB MANAGER TO ATTEND TYLER CONNECT 2026 ANNUAL CONFERENCE IN LAS VEGAS, NEVADA, APRIL 7-10, 2026 6. ACCEPT OFF -SITE IMPROVEMENTS ASSOCIATED WITH THE OASIS RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 32201, LOCATED AT THE NORTHWEST CORNER OF AVENUE 60 AND MADISON STREET CITY COUNCIL MINUTES Page 4 of 10 MARCH 17, 2026 7. ACCEPT OFF -SITE AND ON -SITE IMPROVEMENTS ASSOCIATED WITH THE ESTATES AT POINT HAPPY RESIDENTIAL DEVELOPMENT, TRACT MAP NO. 31348, LOCATED SOUTH OF HIGHWAY 111 AND WEST OF WASHINGTON STREET 8. ACCEPT DUNE PALMS BRIDGE IMPROVEMENTS PROJECT NO. 2011-05, LOCATED ON DUNE PALMS ROAD AT THE COACHELLA VALLEY STORM WATER CHANNEL 9. APPROVE PURCHASE AND UPLIFTS OF 2026 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK WITH A LIFTGATE FROM PARADISE CHEVROLET CADILLAC, AND DECLARE CURRENT 2017 CHEVROLET 2500 SILVERADO UTILITY BED WORK TRUCK AS SURPLUS AND APPROVE DISPOSAL METHOD 10. APPROVE PLANS, SPECIFICATIONS, ENGINEER'S ESTIMATE, AND ADVERTISE FOR BID THE MILES AVENUE PAVEMENT REHABILITATION PROJECT NO. 2023-01 11. APPROVE THREE AGREEMENTS FOR CONTRACT SERVICES WITH (1) PACIFIC WEST INDUSTRIES, INC, (2) RIVCO MECHANICAL SERVICES, INC, AND (3) F.M. THOMAS AIR CONDITIONING, INC, FOR ON -CALL HEATING, VENTILATION, AND AIR CONDITIONING MAINTENANCE, REPAIR, AND REPLACEMENT 12. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH HR GREEN PACIFIC FOR ON -CALL PUBLIC WORKS DEVELOPMENT PLAN CHECK SERVICES 13. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH DUDEK TO PROVIDE ADDITIONAL DESIGN SERVICES FOR THE CIVIC CENTER LAKE AND IRRIGATION CONVERSION PROJECT NO. 2016-06 14. APPROVE DEMAND REGISTERS DATED FEBRUARY 20 AND 27, 2026 CONSENT CALENDAR — COMMENTS on ITEM NO. 10: Mayor Evans said the City continues to make substantial financial investments in pavement management, rehabilitation, and enhancements to ensure La Quinta's road infrastructure is well maintained and improved. MOTION — A motion was made and seconded by Councilmembers Fitzpatrick/Pena to approve the Consent Calendar as presented, with Item No. 1 adopting Resolution No. 2026-003. Motion passed unanimously. BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2024/25 GENERAL FUND YEAR-END BUDGET REPORT AND APPROVE THE AMENDED BUDGET CARRYOVERS CITY COUNCIL MINUTES Page 5 of 10 MARCH 17, 2026 Finance Director Martinez presented the staff report, which is on file in the Clerk's Office. Council discussed transparent accounting for Measure G expenditures; surplus funds; investing in quality of life for the La Quinta community; and unfunded pensions. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to receive and file fiscal year 2024/25 General Fund Year -End Budget Report and approve the amended budget carryovers as presented. Motion passed unanimously. 2. RECEIVE AND FILE FISCAL YEAR 2025/26 MID -YEAR BUDGET REPORT, APPROVE THE RECOMMENDED BUDGET ADJUSTMENTS, AND ADOPT RESOLUTION TO ADD ENGINEERING SPECIALIST POSITION [RESOLUTION NO. 2026-004] 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 Pena/McGarrey to: (1) Receive and file fiscal year 2025/26 Mid -Year Budget Report and approve the recommended budget adjustments as presented; and (2) Adopt Resolution No. 2026-004 to update the Classification Plan and Salary Plan/Schedule for fiscal year 2025/26 to add an Engineering Specialist position as presented: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A REVISED CLASSIFICATION PLAN AND SALARY PLAN/SCHEDULE ADDING AN ENGINEERING SPECIALIST CLASSIFICATION IN FISCAL YEAR 2025/26 Motion passed unanimously. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS — Continued 2. »> Taken out of agenda order IRONMAN 70.3 LA QUINTA TRIATHLON — DECEMBER 7, 2025, EVENT SUMMARY AND ECONOMIC REPORT BY EVENT OPERATIONS MANAGER MAX LITTLE PRESENTER: Operations Director Max Little with World Triathlon Corporation Southwest Region — provided a recap of the La Quinta Ironman 70.3 triathlon event, held on December 7, 2025, including athlete origins, the 3 courses, complaint calls, and traffic, parking, dust, trash and food availability issues; historic economic impact; and detailed the goals and planned enhancements for the upcoming 2026 Ironman event, including shuttle service, parking, athlete accessibility, traffic flow, and event atmosphere. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 5:17 P.M. CITY COUNCIL MINUTES Page 6 of 10 MARCH 17, 2026 MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 5:28 P.M. WITH ALL MEMBERS PRESENT 3. APPROVE AGREEMENT REGARDING INSUBSTANTIAL MODIFICATION TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND CM WAVE DEVELOPMENT LLC RELATING TO DEVELOPMENT AGREEMENT 2023-1000 FOR THE CORAL MOUNTAIN CLUB PROJECT; LOCATION: SOUTH OF AVENUE 58, WEST OF MADISON STREET, AND NORTH OF AVENUE 60 City Attorney Ihrke presented the staff report, which is on file in the Clerk's Office. Council discussed the reason for the range of $1 to $1.7 million threshold related to the annual mitigation fee per residential unit for public safety costs; ability for future Homeowners Associations (HOA) within this development to decide whether or not to allow short-term vacation rentals within its respective areas; and ability of the HOA to refuse to pay mitigation fee. MOTION — A motion was made and seconded by Councilmembers Pena/Fitzpatrick to approve Agreement Regarding Insubstantial Modification to Development Agreement by and between the City of La Quinta and CM Wave Development LLC, relating to Development Agreement 2023-1000 for the Coral Mountain Club project; and authorize the City Manager to execute the agreement. Motion passed unanimously. 4. INTRODUCE FOR FIRST READING AN ORDINANCE AMENDING CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM VACATION RENTALS [ORDINANCE NO. 631] City Attorney Ihrke and City Clerk Radeva presented the staff report, which is on file in the Clerk's Office. Council discussed website alerts regarding the updated code. MOTION — A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to take up Ordinance No. 631 by title and number only and waive further reading. Motion passed unanimously. City Clerk Radeva read the following title of Ordinance No. 631 into the record: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS 3.25.020, 3.25.030, AND 3.25.070 OF CHAPTER 3.25 OF THE LA QUINTA MUNICIPAL CODE RELATED TO SHORT- TERM VACATION RENTALS MOTION — A motion was made and seconded by Councilmembers Sanchez/Fitzpatrick to introduce at first reading Ordinance No. 631 amending Sections 3.25.020, 3.25.030, and 3.25.070 of Chapter 3.25 of the La Quinta Municipal Code related to Short -Term Vacation Rentals. Motion passed unanimously. CITY COUNCIL MINUTES Page 7 of 10 MARCH 17, 2026 STUDY SESSION — None PUBLIC HEARINGS 1. ADOPT RESOLUTION TO APPROVE THE PROPERTY LOCATED AT 57600 CORAL MOUNTAIN COURT AS A QUALIFIED AND CERTIFIED LARGE LOT PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE [RESOLUTION NO. 2026-005] Deputy City Clerk Rodriguez presented the staff report, which is on file in the Clerk's Office. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 5:59 P.M. APPLICANT: Kevin Murray, property owner — said the property was built for family use; the anticipated STVR use is for private individuals or families, not groups; there is no intent to rent it for special events, such as large weddings, etc., and noted he landscaped the vacant lot he owns, immediately next to the subject property, to mitigate the dust blowing from it during wind storms onto the adjacent Palo Verde residential community. Mayor Pro Tem Fitzpatrick and Councilmember McGarrey discussed concerns about (1) the closeness of the subject property to the adjacent Palo Verde residential development to the east, and (2) allowing STVR use for a property surrounded by communities that do not permit such use. Council discussed the success of the STVR program in La Quinta the last few years, including minimal complaints and proactive enforcement; effective communications with the community regarding the resources available to report complaints and view information on permitted STVRs via the public portal website; the "quiet enjoyment" of any property is not automatically adversely affected due to a nearby property being permitted for STVR use because of the requirements and processes put in place to ensure compliance with the STVR program; generally, weddings and other similar type events would require a Special Event Permit from the City; and the permanent ban on the issuance of new STVR permits citywide is still in effect, thus, even though any residential development may adopt Covenants, Conditions, and Restrictions (CC&Rs) to allow STVR use within its boundaries, no new STVR permits can be issued as long as the ban remains in effect. MAYOR EVANS DECLARED THE PUBLIC HEARING CLOSED AT 6:12 P.M. City Clerk Radeva said WRITTEN PUBLIC COMMENTS were received from the residents listed below, in alphabetical order, residing in the Palo Verde residential development bordering the subject property to the east, which were distributed to Council, made public, published on the City's website, and included in the public record of this meeting: • John Jankovich — opposed • Peggy Pape — opposed CITY COUNCIL MINUTES Page 8 of 10 MARCH 17, 2026 Council discussed property rights; applying Council -adopted criteria consistently; and public hearing notice requirements and clarity to the public of consequences of this type of approvals. City Attorney Ihrke explained the public hearing notice requirements and stated that the notice for this action met all requirements of the law. MOTION — A motion was made and seconded by Councilmembers Sanchez/Pena to adopt Resolution No. 2026-005 as presented: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE PROPERTY LOCATED AT 57600 CORAL MOUNTAIN COURT, LA QUINTA, CALIFORNIA, IDENTIFIED AS ASSESSOR PARCEL NUMBER 762-440-035, AS A "QUALIFIED AND CERTIFIED LARGE LOT" PURSUANT TO SECTION 3.25.057 OF THE LA QUINTA MUNICIPAL CODE LARGE LOT QUALIFIED AND CERTIFIED 2025-0001 APPLICANT: KEVIN MURRAY OWNERS: KEVIN MURRAY AND SHERRI MURRAY Motion passed: ayes — 3, noes — 2 (Fitzpatrick and McGarrey), abstain — 0, absent — 0. DEPARTMENTAL REPORTS — All reports are on file in the City Clerk's Office. 3. CITY CLERK — SHORT-TERM VACATION RENTAL PROGRAM QUARTERLY REPORT — OCTOBER — DECEMBER 2025 Council discussed the fully positive 4th quarter 2025 STVR report. MAYOR'S AND COUNCIL MEMBERS' ITEMS Mayor Evans reported on her, and other Councilmembers' attendance at One Future Coachella Valley; Para Karate; Career Day at John Glenn Middle School; Welcome event for Friends of the Desert Mountains 5K; Mary Hepp's 101st birthday; Richard Jandt celebration of life; Savers Thrift Store ribbon cutting; La Quinta High School scholarship presentation; Rotary induction; and the Concert in the Park. Mayor Pro Tem Fitzpatrick reported on her attendance at Vista Santa Rosa Community Council meeting. Councilmember McGarrey reported on her attendance at Read Across America at a local school; and the Wildflower Festival in Palm Desert. Councilmember Pena reported on his, and other Councilmembers' attendance at the Boys and Girls Club of Coachella Valley Grand Auction event on March 14, 2026. Councilmember Sanchez reported on his attendance at Alex Yang tree dedication. CITY COUNCIL MINUTES Page 9 of 10 MARCH 17, 2026 REPORTS AND INFORMATIONAL ITEMS La Quinta's representative for 2026, Mayor Evans reported on her participation in the following organizations' meetings: • COACHELLA VALLEY POWER AGENCY JOINT POWERS AGREEMENT • CVAG EXECUTIVE COMMITTEE La Quinta's representative for 2026, Mayor Pro Tem Fitzpatrick reported on her participation in the following organization's meeting: • RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) La Quinta's representative for 2026, Councilmember McGarrey reported on her participation in the following organization's meeting: • COACHELLA VALLEY MOUNTAINS CONSERVANCY La Quinta's representative for 2026, Councilmember Sanchez reported on his participation in the following organization's meeting: • SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Pena/McGarrey to adjourn at 6:46 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES Page 10 of 10 MARCH 17, 2026