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1998 12 01 CC Minutesd_U LA QUINTA CITY COUNCIL MINUTES DECEMBER 1, 1998 Regular meeting of the La Quinta City Council was called to order at the hour of 2:00 p.m. by Mayor Pena, followed by the Pledge of Allegiance. PRESENT: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena ABSENT: None PUBLIC COMMENT Dale Dollins, President of Capitol Pacific Holdings, asked the Council to consider accepting the agreement between KSL, Capitol Pacific Holdings, the City of La Quinta, and American Motors for the Citrus Course) in regard to the perimeter improvements, noting that all parties have signed except the City. In response to Council Member Henderson, Ms. Honeywell, City Attorney, advised that since this came up after the agenda was posted, Council needs to determine if sufficient urgency exists to add it as a closed session item. Mr. Genovese, City Manager, asked that an additional item be added to the closed session agenda, advising that the urgency arose as staff just recently learned that the School District is moving forward on a Negative Declaration. MOTION It was moved by Council Members Sniff/Henderson to add two items to the Closed Session Agenda under Government Code Section 54956.9(a) on-going litigation) City of La Quinta v J. M. Peters Company, Inc., Case No.002597, and under Government Code Section 54956.9(c) potential litigation) one case), noting the urgency of the matters and that the need to take action arose after the posting of the agenda. Motion carried unanimously. Council recessed to Closed Session to and until the hour of 3:00 p.m. CLOSIED SESSION Mayor PenZa abstained from participating in Item No.1 as he has consistently done in the past. Z 1. Conference with the CityZs real property negotiator pursuant to Government Code Section 54956.8 concerning the potential terms and conditions of acquisition andlor disposition of real property located at the southeast corner of Highway 111 and Adams Street. Property OwneriNegotiator: Chris Clarke BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 2 December 1, 1 998 2. Conference with legal counsel pursuant to Government Code Section 54956.9(a) regarding existing litigation: A. Hanover, Case No.085167 B. Western Empire, Case No.30278 C. J. M. Peters, Inc., Case No.002597 3. Conference with legal counsel pursuant to Government Code Section 54956.9(c) regarding potential litigation one case). 3:00P.M. Council reconvened and the City Attorney announced that the City Council concluded a Closed Session pursuant to Government Code Section 54956.9(a) Western Empire, Case No.30278, and J. M. Peters, Case No.002597, and authorized by unanimous vote, settlement agreements in both cases. They will be available for viewing in the City Clerk's Office following execution. PUBLIC COMMENT Mike Smith, 78-760 Runaway Bay, Bermuda Dunes, Chairman of Bermuda Dunes Community Council, extended an invitation to the Council to attend the Community Council meeting on January 14, 1999 at 7:00 p.m. at the James Monroe Elementary School for the purpose of answering questions and starting some preliminary dialogue regarding annexation. Council Member Sniff suggested that the Council discuss how to proceed once the written invitation is received. CONFIRMATION OF AGENDA Mrs. Juhola, City Clerk, asked that approval of the minutes of November 1 7, 1 998, be removed from the agenda and rescheduled for the next meeting. Council Member Adolph asked that a Mayor and Council Members' Item be added to the agenda in regard to street medians. Council concurred on these changes. APPROVAL OF MINUTES Minutes were removed see Confirmation of Agenda) BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 3 December 1, 1 998 ANNOUNCEMENTS None PRESENTATIONS None WRITTEN CORRESPONDENCE 1. LETTER FROM COACHELLA VALLEY ECONOMIC PARTNERSHIP REGARDING MEMBERSHIP. Michael Bracken, 43-500 Monterey Avenue, Palm Desert, Executive Director of Coachella Valley Economic Development Partnership, asked the City to consider membership in the Economic Development Partnership, which began in 1 994 as a private/public effort to recruit new businesses and to expand the local economy in the non-agriculturelnon-tourism sectors. He briefly reviewed their targeted efforts and urged the City's participation. Council Member Sniff wished for Council to have more detailed information before considering membership, such as the privileges of membership, organizational structure, objectives, and possible financial assessments for membership. Mr. Bracken advised that he would forward their budget of $250,0OO-$300,OOb once it's approved by their board next week. He further advised that they are a member-funded organization, with most of their members being private businesses. In response to Mayor Pena, Mr. Bracken advised that they are subject to the Brown Act and that currently, their public agency members consist of: Palm Desert, Indian Wells, Riverside County, Imperial Irrigation District, CVAG, and SunLine Transit Agency. lndio and Coachella will be considering membership on Wednesday. Council concurred on directing staff to agendize this matter for the next meeting if possible, or for the first meeting in January. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 4 December 1, 1 998 CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED DECEMBER 1, 1998. 2. APPROVAL OF AN IMPROVEMENT AGREEMENT REGARDING PHASING OF CERTAIN IMPROVEMENTS ASSOCIATED WITH SDP 97-608, KSL LAND CORPORATION. 3. ADOPTION OF RESOLUTION ACCEPTING DONATIONS BY CALIFORNIA ASSOCIATION OF HEALTH FACILITIES RIVERSIDEISAN BERNARDINO CHAPTER OF $250 AND 19 HARDCOVER BOOKS VALUED AT $75 TO THE SENIOR CENTER'S LIBRARY. 4. AUTHORIZATION OF PISTRIBUTION OF A REQUEST FOR PROPOSALS TO COMPLETE THE GENERAL PLAN UPDATE AND NEGOTIATION OF A CONTRACT FOR CITY COUNCIL APPROVAL. 5. ADOPTION OF RESOLUTION APPROVING AMENDMENT TO CONDITIONS OF APPROVAL FOR SPECIFIC PLAN 87-011 AMENDMENT NO.2, DELETING CONDITION NO.14. 6. ADOPTION OF RESOLUTION ENCOURAGING THE COOPERATION OF UNION PACIFIC RAILROAD IN ORDER TO PERMIT A DEMONSTRATION AMTRAK TALGO" TRAIN TO VISIT THE COACHELLA VALLEY. MOTION It was moved by Council Members Sniff/Adolph to approve the Consent Calendar as recommended with Item Nos. 3, 5, and 6 being approved by RESOLUTION NOS. 98-138, 98-139, and 98-140 respectively. Motion carried unanimously. MINUTE ORDER NO.98-184. BUSINESS SESSION 1. CONSIDERATION OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 1998. Mr. Falconer, Finance Director, advised that Mr. Ken AI-Iman, of Conrad and Associates, would give a brief presentation on the Comprehensive Annual Financial Report. Ken AI-Iman, CPA with Conrad and Associates, advised that the audit confirms that the City's financial statements are in conformance with governmental accounting principles. The General Fund revenues exceeded expenditures by BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 5 December 1, 1 998 approximately $3.4 million, primarily due to careful control of General Fund expenditures and better than expected realization of revenues due to improved economic conditions. This allowed the City to set aside 30% of its reserves into the Emergency Reserve account, as well as fully cover the expenses of its Equipment Replacement Fund and to add to that fund by setting aside reserves for future capital replacement. Tax increment revenues for Redevelopment Project Areas 1 and 2 have increased substantially, and the City is making satisfactory progress in regard to the Year 2000 Project. He complimented the Finance Department on the excellent condition of the accounting records and noted that the City continues to receive awards for excellence in financial reporting. Council Member Sniff complimented staff and Conrad and Associates for doing a super job. Council concurred. MOTION It was moved by Council Members Sniff/Adolph to receive and file the Comprehensive Annual Financial Report for the year ended June 30, 1998. Motion carried unanimously. MINUTE ORDER NO.98-185. 2. CONSIDERATION OF ADOPTION OF RESOLUTION APPROVING THE REVISED POLICY AND APPLICATION PROCESS FOR FORMATION OF LAND-BASED FINANCING DISTRICTS. Mr. Falconer, Finance Director, advised that based on the recent experiences in forming an assessment district with Century Crowell Communities, three changes are proposed to the policy and application process for formation of developer-driven assessment districts, adding that Century Crowell has submitted a pre-application for another assessment district. He reviewed the proposed changes as follows: 1) that a 100% concurrence of property owners be required in any proposed assessment district; 2) that a $2 million net bond proceeds amount be established; and 3) that no less than 50% of the public improvements be required to be dedicated to the City. Proposed change #3 is a result of Century CrowelIZs latest application wherein 87% of the improvements are sewer and water, which would be inspected and approved by Coachella Valley Water District CVWD) and then dedicated to CVWD. Mr. Genovese, City Manager, advised that, although, the recent assessment district was utilized for purpose of comparison in the report, staff feels that the policies are applicable to all applicants. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 6 December 1, 1 998 In response to Council Member Adolph, Mr. Falconer confirmed that if an assessment district is formed prior to the sale of any of the lots, the developer would be the only property owner and voter. Council Member Adolph advised that he's not totally in favor of this type of assessment district. Ernest Vincent, 1535 South D Street, Suite 200, San Bernardino, Vice President of Century Crowell Communities, commented on the number of homes they have built in the City and how the proposed changes will make it difficult for them to do anymore assessment districts. The type of assessment districts they wish to utilize are generally used to pay for public improvements that have a direct benefit to the specific neighborhood. This policy not only deals with those, but also with Mello Roos Districts, which are for improvements having a regional benefit such as fire stations and libraries. They feel there's a little mixing of the two. The $2 million threshold and the 50% requirement on improvements to be dedicated will make it very difficult for them. Under their recent application they had to search for improvements to get close to the $2 million threshold. It would help if they are allowed to include interior tract streets, which would later be dedicated. He requested more flexibility by reducing the minimum amount to $1 million and by allowing more improvements to be included. As an alternative, he suggested appointing a task force of staff, community business leaders, and a developer representative, to work on the policy before it's adopted. John Pavelak, 1 535 South D Street, Suite 200, San Bernardino, President of Century Crowell Communities, reviewed the benefits of land-based assessment districts, and suggested a study session to discuss the issue. He noted that larger amount assessment districts run a higher risk of going into default. To help cover the City's staff time for processing the assessment districts, he suggested the possibility of raising the fee from $15,000 to $35,000. In response to Council Member Henderson, Mr. Pavelak confirmed that they've been working with CVWD to try to formulate assessment districts in private communities, but CVWD has been taking a cautious approach because it's new to them. They didn't apply for an assessment district when they took over Topaz because of the school fees. In response to Council Member Sniff, Mr. Falconer advised that the revisions have been reviewed by bond counsel and found to be appropriate. Mr. Genovese pointed out that the policies can be changed at any time should the economy change. He further noted that most of the other developments in BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 7 December 1, 1 998 the City have not requested this type of financing, and that the City has been successful under that tenor. Mayor Pena noted that the majority of the costs are associated with CVWD, and stated that he felt something needs to be done with their costs. He believed some of the points raised by Mr. Pavelak might merit discussion, but pointed out that it comes down to a policy decision on behalf of the Council. Council Member Sniff felt this a well-considered and thoughtful proposal that can be changed in the future should there be a change in the economy. In response to Mayor Pena, Mr. Genovese advised that as a policy document, any changes would be effective immediately. Council Member Sniff supported moving forward with it. Council Member Henderson felt there's a perception among residents that these assessment districts are generated by the City. She's not particularly impressed with assessment districts, but felt that Mr. Pavelak has made some very valid arguments. A lot of the problems would be avoided if 100% concurrence of property owners is required, and she would tend to be more supportive at that level. She also felt that the City should look at increasing its fees given the amount of staff time required with the last assessment district. Overall, she was comfortable with staff's recommendation. Mayor Pen a felt 100% concurrence might be hard to get. Council Member Henderson believed the intent is to have the assessment district in place before the homes are sold. Council Member Adolph was concerned about getting too many assessment districts going and didn't understand why developers can't work directly with CVWD. He didn't want to eliminate the ability to have these assessment districts, but felt the City should have certain controls and supported staff's recommendation. He wasn't opposed to Mr. Pavelak's suggestion for a study session, but felt the City needs to have controls. Council Member Perkins was concerned about how assessment districts place the City in a peculiar position and how it causes people to look at the City as the bad guy. He wasn't sure if $2 million is the appropriate figure, but felt there must be some controls. He stated that he doesn't like development-related assessment districts. He didn't object to a committee made up of staff and developers and asked if that had been done; to which Mr. Falconer responded BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 8 December 1, 1 998 no, adding that the proposed revisions are based on existing policies and the situation at hand. Council Member Perkins felt it might be good to involve the private sector. Mayor Pena felt comfortable with the direction the City is heading, and asked if the absence of an assessment district would result in an increase in the price of their homes, to which Mr. Pavelak responded yes. Mr. Pavelak felt that changing the policy when the economy changes almost wouldn't work because the developments would already be hurting. He then commented on how some of the property owners backed out of their agreement with the developer during the last assessment district. Council Member Henderson felt that is the problem because property owners look at the City as being responsible for the assessment. She asked what the house payment would be on $157,000 without an assessment district) compared to the house payment on $150,000 with a $7,000 assessment. She felt $50 a month for an assessment is a lot for some people. Council Member Perkins suggested continuing this item and getting input from the BIA. Mayor Pena was leaning toward staff's recommendation, but didn't object to getting input from the BIA and some of the developers. Council Member Sniff suggested including developers in the discussions. Mr. Genovese noted that staff wouldn't know which developers to approach because none of the other developers have ever approached the City for an assessment district. Mayor Pena suggested leaving it up to the BIA to contact their membership. In response to Council Member Henderson, Mr. Genovese advised that he preferred limiting the discussion to BIA. MOTION It was moved by Council Members Sniff/Henderson to continue consideration of the policy and application process for formation of land-based financing districts to December 15, 1998 and that the City Manager be directed to contact the Building Industry Association BIA) and any others that he feels is appropriate to be included in the discussion Motion carried unanimously. MINUTE ORDER NO.98-186. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 9 December 1, 1 998 3. CONSIDERATION OF FISCAL YEAR 1998/99 MARKETING PLAN. Mr. Weiss, Assistant City Manager, advised that the proposed marketing plan for this fiscal year was prepared by KinerlGoodsell Advertising, Inc. as directed by Council on November 3, 1 998. The City's total unallocated budget for promotional activities is approximately $170,000. Kiner/Goodsell has taken that basic budget parameter and has provided a plan for allocating those monies. The plan focuses on attracting more shoppers and diners, more businesses, and more residents. Minor adjustments to the proposed budget consists of expending approximately $2,200 for additional graphics on the City's web pages, which would reduce expenditures in other areas. The $1 70,000 is the base budget for the services. It does not include the consultantZs monthly retainer of $3,750, which will be considered under Business Session Item No.4. In response to Council Member Henderson, Mr. Weiss confirmed that the City could accept the marketing plan without hiring the consultant. In response to Council Member Adolph, Mr. Weiss advised that the 1 998/99 budget started with $1 70,350, but some of it has been expended and/or committed. Scott Kiner, 73-101 Highway 111, Suite 4, Palm Desert, of Kiner/Goodsell Advertising, Inc., advised that the proposed marketing plan was tailored to the input they received from local leaders, including the Council. He advised that Lee Goodsell would present the plan. Lee Goodsell, 73-101 Highway 111, Suite 4, Palm Desert, Creative Director for Kiner/Goodsell Advertising, Inc., advised that the plan has three objectives, which will interface with each other. The attract more shoppers" portion of the plan starts with playing the Historical Society video on public access television and follows with a campaign that is designed to attract more shoppers and diners in the City. The plan includes, but is not limited to direct mailings, press releases, brochure, an Internet Mall focusing on home-based businesses in the City, free seminars on marketing and public relations for City businesses, and a Dine La Quinta" program. In regard to the attract more businesses" portion of the plan, they propose a survey of residents to assess * the needs in terms of retail businesses and then using that information for a targeted direct mail program. They also propose: a 30-second television commercial directed at vacationing business owners and/or businesses looking to expand; advertisements in various magazines; and recruitment of visitors as potential business owners. Inquiries will be followed up by either the City or the Chamber of Commerce, whichever is deemed appropriate. Other components BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 10 December 1, 1 998 include a program helping to induce developers to create spec space and an educational program for real estate agents to learn about the opportunities in the City. The first component of the attract more residents" portion of the plan, is a 30- second television commercial, which highlight the advantages of owning a home in La Quinta. To augment the commercial, a brochure with a map and listing of all new home developments, would be created. In addition, they're proposing a Parade of Homes" event to be held with the La Quinta Arts Fbundation as a beneficiary. Related seminars would be held such as, How to Go from a Renter to a Homeowner" and Can I Qualify." They propose using the image of the quail wherever possible in the graphics, as well as a quail character to be used at selected City events. In response to Council Member Adolph, Mr. Kiner advised that they propose to develop property profiles on the City's key commercial properties to present to interested developers. He noted that they've made dramatic changes to the budget outline presented to them by staff. In response to Mayor Pena, Mr. Weiss advised that staff is well on the way to putting the property profiles together. Mr. Kiner advised that the budget is somewhat of a fluid document, and that their objective is to maximize the return on the investment for the City. In response to Council Member Adolph, Mr. Kiner advised that the three campaigns are somewhat staggered so as not to run concurrently. It would begin with Dine La Quinta," and be followed up with Economic Development," then Live in La Quinta" Council Member Adolph pointed out that it's difficult to emphasize golf without a public golf course and suggested low keying that aspect. He suggested putting some of the items off until next year's budget, noting that he doesn't support going into the City's Emergency Reserves. Mr. Kiner advised that they were given a figure to work with prior to the Skins Game expenditure. The plan is heavy on collateral because there's a lack of material available, but some of it can be deferred to the next fiscal year. Some of the marketing emphasis can also be deferred and the third part of the campaign can be scaled back. Council Member Adolph felt perhaps there is too being thrown into the community at once, and that it should be scaled back to see if it works. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 11 December 1, 1 998 Mr. Kiner felt it's important to keep an active calendar going. Council Member Perkins didn't like where good living takes flight," and felt the shop local" campaign might be premature, noting that there isn't any place for people to come and shop except the home improvement stores. He was a little concerned that the City is doing what the Chamber is doing or should be doing with the support from the City. The City's marketing program must be separate from what the Chamber is doing. He supported moving ahead with the program. Council Member Henderson appreciates the aggressiveness of the program and wished to see several of the items implemented during the next 4Y2 months. She felt the"attract more residents" campaign should be deferred, with the exception of the map with the builders listed and the Parade of Homes" event. She felt that that thrust could be included in the shop/dine La Quinta program and in attracting new businesses, and didn't feel that there's a need to do a lot of postcards and/or brochures. She agreed with Council Member Perkins' comments regarding taking flight" and the shop local" campaign, but liked the quail concept. Economic development needs to be emphasized in order to get the stores here, and then a shop local" program can be done. She questioned the use of direct mail in connection with the Dine La Quinta" program. In response to Council Member Henderson, Mr. Kiner advised that they are proposing to use oversize postcards for direct mailing, noting that not only is the postage less, but the image on the postcard is seen and an impression is made before the postcard is thrown away. Their intent is to help the shop La Quinta" campaign that the Chamber is already doing. He felt there are enough restaurants in La Quinta to own the position as the place to dine," and that if people dine here they will learn to shop here as well. He suggested they be allowed to work with staff and come back with a scaled-down version of the plan. As for the Historical Society video, it needs to be updated and they propose inserting the 30-second commercials for when it's displayed at the La Quinta Hotel. They also intend to use portions of the video used for the Skins Game if possible. Council Member Sniff felt the scope and focus of the plan should be narrowed, and that attracting new residents is an integral part of the plan. By attracting more residents, it will lead to a much stronger basis for businesses to locate here. He believed the City does have places for people to shop, and that those businesses need support. He encouraged emphasis on television and questioned the effectiveness of mailers. The plan needs some means or method whereby its success can be measured. He suggested that this item be continued for two weeks, and that two Council representatives and staff meet with the consultant BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 1 2 December 1, 1 998 to narrow the focus of the plan. He agreed with changing the phrase, take flight," and liked using the quail, but felt a quail character is too cutesy. He pointed out that the City does not allow retail sales out of the home, and he felt the direct mailing should be minimized, or maybe even eliminated. He liked the Dine La Quinta" program, but questioned whether or not the restaurants would avail themselves of it and felt the complexity of it should be rethought. Mr. Kiner advised that the 20% discount would be limited to $5.00. Council Member Sniff then offered additional comments as follows: newspaper ads should be somewhat limited; attracting new businesses should be number one; and the statement on Page 10 should be modified as new residents/shoppers are the life blood of La Quinta. He questioned the value of press releases, the effectiveness of surveys, and the need for so many brochures. He also felt Shangri-La Quinta" was too cutesy. Mayor Pena felt the marketing plan is just a road map and that in the short term the City needs to attract more visitors by telling a story through a television commercial on why La Quinta is booming. The collateral material should come later. If people get interested about what's happening here maybe they will come take a look and shop and dine here. Focus on expansion because there are a lot of businesses in the valley that might want a second location. Council Member Sniff agreed that the campaign should pique people's interest so that they will be motivated to shop and dine here. Mr. Kiner noted that generic advertising can't be tracked, but the Dine La Quinta" campaign can be. Council Member Perkins questioned the use of Shangri-La Quinta." After a brief discussion, Council concurred on continuing this item, along with Business Session Item No.4, to the evening session. MOTION It was moved by Council Members Sniff/Henderson to continue Business Session Item Nos. 3 and 4 until the evening session. Motion carried unanimously. MINUTE ORDER NO.98-187. 4. CONSIDERATION OF CONTRACT FOR SERVICES WITH KINERIGOODSELL ADVERTISING, INC. FOR MARKETING SERVICES. See Business Session No.3. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_U City Council Minutes 13 December 1, 1 998 5. CONSIDERATION OF APPROPRIATION OF FUNDS FOR LIBRARY PURCHASES. Mr. Weiss, Assistant City Manager, advised that the County is asking the City to help them purchase some furnishings and a theft security system for the expansion of the library in the amount of $77,275. In response to Council Member Adolph, Mr. Weiss advised that according to the operators of the library, theft is a significant problem. He further advised that the theft security system is moveable and can be moved when a new library is built. MOTION It was moved by Council Members Henderson/Sniff to appropriate $77,275 in the Capital Equipment account for library improvements. Motion carried unanimously. MINUTE ORDER NO.98-188. Council recessed to and until 7:00 p.m. 7:00P.M. PUBLIC COMMENT Leonard Laitinon, 51-701 Avenida Martinez, spoke regarding the need to finish the Cove street improvements and asked when they would be done. Mr. Genovese, City Manager, advised that the improvements have been fully funded and are currently under design. The assessment district proceedings will take sbme time, but construction should begin within six to nine months. PRESENTATIONS The Mayor and Council Members presented Art Awards to the following students of La QLZinta Middle School whose artwork has been on display at City Hall: Mahar Abdelghani Michelle Edgar Desiree Gillespie Daniel Balban Chris Evans Amanda Goff Melissa Borgetti Justine FitzHenry Angelica Gonzales Jennifer Brown Ashley Garbutt Krystle Jackman Mark Caceres Justin Garcia Nicole Kitzmiller Brooke Devenney Candace Garcia James Kothlow BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 14 December 1, 1998 Jose Lopez Alex Prebot Charity Stearman Cynthia Palamen Robert Rubalcaba Ashlee Viveros Kelly Patterson Rebecca Saltman Alondra Zuniga Serina Pizaro Brian Smith Ashley Portolesi Cynthia Solerlo PUBLIC HEARINGS 1. TENTATIVE TRACT 29004- TO RE-SUBDIVIDE 3.75 ACRES WITHIN TRACT 28149 INTO 11 SINGLE-FAMILY LOTS AND THREE COMMON LOTS, LOCATED AROUND THE EAST SIDE OF SOUTHERN HILLS AT OAKMONT, WITHIN PGA WEST. APPLICANT: KSL LAND CORPORATION. The Mayor declared the PUBLIC HEARING OPEN. Mr. Herman, Community Development Director, advised that this is a request to re-subdivide existing lots into 11 single-family lots and two common lots. Lots range from 9,104 sq. ft. to 20,606 sq. ft. with an average of 10,558 sq. ft. The tract will incorporate the Ryder unit types as previously approved with square footages of 2,065 to 2,380. The Planning Commission recommended approval on November 10, 1998, subject to conditions. In response to Council Member Adolph, Mr. Herman advised that the proposed tract is in conformance with the Specific Plan. Chevis Hosea, 55-920 PGA Boulevard, Vice President of Land and Commercial Development for KSL Land Corporation, asked for a modification of Condition No.39 to allow lawn spray irrigation within 1 8 inches of curb. In response to Council Member Adolph, Mr. Hosea advised that no pools are planned in the green belt areas, and that it has been accepted by the homeowners association. There being no one else wishing to speak, the Mayor declared the PUBLIC HEARING CLOSED. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 1 5 December 1, 1 998 RESOLUTION NO.98-141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING TENTATIVE TRACT MAP 29004 TO SUBDIVIDE 3.75 ACRES INTO 11 SINGLE-FAMILY LOTS AND THREE COMMON LOTS, LOCATED ALONG TH EAST SIDE OF SOUTHERN HILLS AT ITS INTERSECTION WITH OAKMONT, WITHIN PGA WEST KSL LAND CORPORATION). It was moved by Council Members Sniff/Henderson to adopt Resolution No. 98-141 as amended Condition No.39 amended to 18 inches). Motion carried unanimously. 2. SPECIFIC PLAN 90-015, AMENDMENT NO.1 FOR SPECIFIC PLAN REVIEW AND AMENDMENT TO ADD 20 ACRES TO THE PROJECT SITE, REDUCE THE NUMBER OF DWELLING UNITS FROM 1,060 TO 365, REVISE THE LAYOUT AND CIRCULATION, AND AMEND MISCELLANEOUS DEVELOPMENT STANDARDS ON THE NORTH SIDE OF AIRPORT BOULEVARD, BETWEEN MADISON STREET AND MONROE STREET. APPLICANT: KSL LAND CORPORATION. The Mayor declared the PUBLIC HEARING OPEN. Mr. Herman, Community Development Director, advised that the proposed amendment is for the addition of approximately 20 acres and for the reduction in the number of dwelling units. The application was reviewed by the Planning Commission on October 27, 1998, with a recommendation to approve it subject to conditions. Chevis Hosea, 55-920 PGA Boulevard, Vice President of Land and Commercial Development for KSL Land Corporation, stated that he believed the plan conforms to the circulation element. However, as a result of a walk-around by Greg Norman, some minor revisions are being proposed to the layout of the course, as well as to the residential. He stressed that these modifications continue to conform to the City's circulation element. In summarizing the changes proposed, he advised that they have placed some lots along Monroe Street and along the northern boundary; and an emergency access to Monroe * Street. He advised that the course is 7,450 yards, making it one of the longest ones in the valley which as taken up some residential lots. In order to make the project economically viable, it's necessary to add some units, therefore, they are proposing the addition of 3.75 acres to this tract consisting of the 11 single- family units. He noted that the original Specific Plan approved 1 O00 lots and BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 1 6 December 1, 1 998 they reduced it down to 365 lots and the plan before the Council indicates 200 lots, which is very low density for an 1 8-hole golf course. In response to Council Member Adolph, Mr. Hosea advised that all of the streets are minimum width. Council Member Adolph didnZt have a problem with that as long as the driveways are designed in such a manner that vehicles parked on the street do not causeZa problem with vehicles backing out of driveways. In response to Mayor Pena, Mr. Hosea stated that he didnZt believe the proposed changes are substantial from what the Planning Commission has reviewed. Mr. Herman advised that the plan reviewed by the Planning Commission did not include lots along Monroe Street or the northern boundary, nor did it include an emergency access to Monroe Street. In addition1 all but one of the cul-de-sacs have been eliminated. He believed the changes are substantial and should go back to the Planning Commission. Council Member Sniff felt it might be appropriate to send it back to the Planning Z Commission. In response to Council Member Henderson, Mr. Hosea confirmed that itZs conceivable that there will be additional changes. He pointed out that the density has been reduced from 1,000 to 200 units, and that there are no additional accesses except for the one emergency access. He advised that he would be agreeable to a condition requiring an update of the Specific Plan prior to any tract maps being filed. Mayor Pena felt that would be appropriate. Council Member Henderson agreed and stated that she didn't have a problem moving forward with it. In response to Council Member Sniff, Mr. Hosea advised that each unit should have sufficient off-street parking to accommodate two to three vehicles. Any additional vehicles would have to park on the street. Mayor Pena stated that he would be comfortable moving forward with it with the additional language. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_U City Council Minutes 17 December 1, 1 998 Council Member Adolph felt the Planning Commission would agree with the changes. In response to Council Member Perkins, Mr. Hosea advised that the current minimum street width in PGA West is 36 feet. He noted that the 28 feet width would have to be approved by the Fire Department. In response to Mayor Pena, Mr. Hosea advised that they're looking to open the golf course on December 1, 1 999. In response to Council Member Perkins, Mr. Hosea advised that, currently they have 1 800 homes in PGA West and with what has been approved, it brings the total to 2,800. They have density approvals for over 5,000 units in Specific Plans, and may convert their hotel site and front commercial area to residential. There being no one else wishing to speak, the Mayor declared the PUBLIC HEARING CLOSED. After a brief discussion, Council concurred on adding a condition to require Z updating of the Specific Plan to reflect the new layout prior to the issuance of building permits. RESOLUTION NO.98-142 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AMENDMENT NO.1 TO SPECIFIC PLAN 90-015 ON THE NORTH SIDE OF AIRPORT BOULEVARD BETWEEN MADISON STREET AND MONROE STREET KSL LAND CORPORATION). It was moved by Council Members Sniff/Adolph to adopt Resolution No.98-142 as amended, adding appropriate language to Condition No.57 approving the revised layout and requiring a review of the Specific Plan prior to issuance of building permits. Motion carried unanimously. 3. CONTINUED PUBLIC HEARING FOR THE CENTRE AT LA QUINTA DEVELOPMENT AGREEMENT, AMENDMENT NO.1. Mayor Pena abstained as he has consistently done in the past and left the dais. The Mayor Pro Tern declared the PUBLIC HEARING OPEN. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 1 8 December 1, 1 998 Mr. Herman, Community Development Director, advised that the proposed Development Agreement provides for the following.Z 1) Stamko to develop approximately 87 acres between Adams Street and Jefferson Street on Highway 111 as auto and commercial uses, including three auto dealerships fronting Highway 111 east of Adams Street; 2) Stamko to construct on and off-site improvements, including street improvements to Adams Street and Highway 111; 3) Stamko to contribute up to $800,000 towards off-site improvements, with said amount reimbursable from sales tax proceeds from the project over ten years at 8.5% interest; 4) City to contribute up to $1 000,000 toward off-site improvements; 5) City to contribute an additional $76,411 annually to Stamko for each year over ten years that the project generates $530,000 in sales tax revenue adjusted per CPI i.e, equates to $500,000 principal at 8.5% interest over ten years); and 6) City to waive $29,879.37 in fees associated with processing of previous project upon successful processing of new project applications and issuance of building permits for auto project. He then referenced Page 27 of the staff report and advised of the following addition to the first paragraph of Section 20 of the Development Agreement: If the City fails to deposit the prepayment amount within 24 hours as provided in Section 7(a)(1), the developer shall have the right to make a written demand to the City to comply; and if the City fails to comply with the demand for deposit within 24 hours following written notice by the developer, then the developer has the right, at its option, and without further notice or demand, to take actions provided for in the succeeding paragraphs of this section, including, but not limited to, seeking equitable relief." Chris Clarke, 10100 Santa Monica Boulevard, Los Angeles, General Partner of Stamko Development, advised that she's in agreement with the changes as delineated by staff. She thanked Council and staff for their help with this project and noted that Stamko is actually contributing a total of $1.3 million. There being no one else wishing to speak, the Mayor Pro Tern declared the PUBLIC HEARING CLOSED. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 1 9 December 1, 1 998 Council expressed their appreciation for staff's dedicated efforts in working with the applicant on this project, and thanked Stamko for their diligence. MOTION It was moved by Council Members Sniff/Adolph to take up Ordinance No.328 by title and number only and waive further reading. Motion carried with Mayor Pena ABSENT. ORDINANCE NO.328 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT 97ZO2, AMENDMENT NO. 1, BY AND AMONG THE CITY OF LA QUINTA AND STAMKO DEVELOPMENT COMPANY. It was moved by Council Members Sniff/Adolph to introduce Ordinance No.328 on first reading. Motion carried by the following vote: AYES: Council Members Adolph, Henderson, Perkins, Sniff NOES: None ABSENT: Mayor Pena ABSTAIN: None BUSINESS SESSION................continued 3. CONTINUED CONSIDERATION OF FISCAL YEAR 1998/99 MARKETING PLAN. Note: This item was continued from the afternoon session.) Mr. Genovese, City Manager, advised that after briefly meeting with the consultant, staff recommends moving forward with the video/television commercial. The components of the plan would be Dine La Quinta," economic development, and the Historical Society video. All three components are well under the current budget allocation of funds available to conduct the marketing efforts. He further recommended coming back in two weeks regarding the final budget within the current allocation that is allowed in the budget of approximately $130,000 +. Staff further recommended that Council approve the retainer of the consultant's services in Business Session Item No.4. Council concurred with staff's recommendation. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 20 December 1, 1 998 MOTION It was moved by Council Members Sniff/Henderson to go forward with implementation of the video/TV commercial areas of the Marketing Plan and having the components be the Dine La Quinta," Economic Development, and Historical Society video; and for staff to return to the City Council on December 1 5, 1 998, with the final budget and a design for a fruitful marketing effort for the remainder of the fiscal year. Motion carried unanimously. MINUTE ORDER NO.98-189. 4. CONSIDERATION OF CONTRACT FOR SERVICES WITH KINERIGOODSELL ADVERTISING, INC. FOR MARKETING SERVICES. Note: This item was continued from the afternoon session.) See Business Session Item No.3 above. MOTION It was moved by Council Members Sniff/Henderson to authorize the City Manager to enter into an Agency Agreement, as approved and reviewed by the City Attorney, with the firm of Kiner/Goodsell Advertising, Inc., and to appropriate $10,000 from salary savings for contract services. Motion carried unanimously. MINUTE ORDER NO.98-190. STUDY SESSION None REPORTS AND INFORMATIONAL ITEMS All reports were noted and filed. DEPARTMENT REPORTS None MAYOR AND COUNCIL MEMBERS' ITEMS 1. DISCUSSION REGARDING INCREASE IN COMPENSATION FOR PLANNING COMMISSIONERS. Council Member Perkins recommended that the Planning Commission's compensation be increased to $100 per meeting. BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02 d_UCity Council Minutes 21 December 1, 1 998 Council Member Sniff advised that he couIdnZt support that amount, given the fact that the Council only receives $500 a month and does much more than the Planning Commission does. He suggested $75 per meeting. Council Member Henderson stated that she was more comfortable with $75. Council Member Adolph agreed with$75. Council concurred on directing staff to bring this item back for Council's consideration at the next meeting. 2. DISCUSSION REGARDING LANDSCAPE MEDIANS. Council Member Adolph noted that the homeowners association along Avenue 50 has asked the City when they plan to landscape the medians on Avenue 50, and he wished to have staff come back with a report on whether or not funding is available to do it. Council Member Henderson felt it should be looked at in conjunction with the CIP in March. Mayor Pena commented on the bad condition of Avenue 54, between Madison Street and Monroe Street, and asked that it be looked at as well. Council concurred on looking at these matters during the CIP discussions. Council recessed to Redevelopment Agency meeting. Council reconvened and recessed to Financing Authority. Council reconvened. There being no further business, it was moved by Council Members Sniff/Adolph to adjourn. Res e tfully submitted, AUNDRA L. JUHOLA, City Clerk City of La Quinta, California BIB] 12-28-1998-U01 01:37:32PM-U01 ADMIN-U01 CCMIN-U02 12-U02 01-U02 1998-U02