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1994 05 03 CC Minutes LA QUINTA CITY COUNCIL MINUTES MAY 3,1994 Regular meeting of the La Quinta City Council was called to order at 3:00P.M. by Mayor Pena followed by the Pledge of Allegiance. PRESENT: Council Members Bangerter, McCartney, Perkins 3:08 P.M.), Sniff, Mayor Pena ABSENT: None Mayor Pena advised that Council Member Perkins would be a few minutes late. CONFIRMATION OF AGENDA Council Member McCartney asked that Consent Item No.3 be pulled for discussion and made Business Session No.10. APPROVAL OF MINUTES MOTION It was moved by Council Members Sniff/Bangerter that the Minutes of April 19, 1994 be approved as submitted. Motion carried unanimously. ANNOUNCEMENTS None PRESENTATIONS Mayor Pena presented a proclamation to Ned Millis, President of the La Quinta Historical Society, declaring the week of May 8-14, 1994 as National Preservation Week. Mayor Pena encouraged everyone to visit the Historical Museum which is opened to the public Thursday through Saturday from 10:00 a.m. to 3:00 p.m. Mayor Pena presented Bruce Pelletier, Building Inspector I/Code Enforcement Officer, with a plaque expressing the City's appreciation for being chosen Employee of the Month?' for April. Mayor Pena announced that the La Quinta Beautiful *?Spring Splendor" award recipient for the month of March was Samuel and Petra Castro, 51-220 Calle Paloma BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 2 May 3, 1994 PUBLIC COMMENT Mary Drury, Property Manager at PGA West, spoke on behalf of both PGA West Associations and expressed concern about emergency legislation passed in February concerning pool fencing. She stated that their objection was the lack of notice. Both Palm Desert and Indian Wells granted a 90-day grace period, however, the La Quinta City Attorney has advised that would not be acceptable due to the liability the City could be exposed to. Had the residents been given a grace period, they would have been able to obtain permits within a gated community where fencing already exists and there would be no liability to the City during that period of time because it takes that long to build a pool. They believe that the City was short- sighted, as it would have brought some revenue into the City. David Ingram, 79-790 Tangelo, commented that he lives in a gated community and commented that the fencing requirement does not apply to a large body of water on the fairway, but he must install a four-foot barrier along the back and partially obscure the view of the neighbors on both sides and install an alarm if he builds a pool in his backyard. He noted that Section 17958 in the State Building Standards Code allows a City 180 days to adopt the Standards Code by ordinance with applicable additions, amendments, or deletions. If a City fails to adopt an ordinance within that time period, the State Building Codes automatically become applicable. He asked that the Council grant a six-month extension from May 9th as there are many people interested in building a pool who feel that this requirement goes far and beyond any reasonable safeguard. Council Member Perkins joined the meeting at this time 3:08 p.m.). In response to Mayor Pena, Ms. Honeywell, City Attorney, stated that the Council could add this as an agenda item due to the fact that the residents' requests would become moot by the next Council meeting, and it could be discussed in Closed Session because of potential litigation that may be involved with any action that might be taken by the Council. Mayor Pena wished to see this matter added to the Closed Session agenda. He understood some of the comments made and the unreasonableness of having to fence a pool, yet a lake isn't required to be fenced. MOTION It was moved by Council Members Sniff/Mccartney that the issue of pool fencing be added to the agenda noting that the need to take action arose after the posting of the agenda. Motion carried unanimously. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 3 May 3, 1994 Jack Abels, P.O. Box 1416, La Quinta Planning Commissioner, reported on conferences he has attended and commented on the importance of Commissioners attending such meetings. He asked that during budget review, the Council consider allocating funds for upcoming conferences in FY 1994/95. He noted that at a joint study session between the City Council and Planning Commission, it was suggested that a Specific Plan be developed for the Highway 111 Corridor. He asked that the Council direct staff to update the Village Specific Plan and to expedite the development of the Highway 111 Specific Plan and suggested forming a committee of two Council Members and two Planning Commissioners. Doris Mechanick, Coachella Valley Child Care Coordinator, presented a new brochures Choosing Child Care, now printed in Spanish; and the La Quinta Family Resource Guide and stated that they will be distributed through the YMCA, the schools, and the City. She thanked Mr. Bohlen, Parks and Recreation Director and his staff for their assistance. She looked forward to working with the City in the future as the need for child care grows. She also thanked the Council for their support. WRITTEN COMMUNICATIONS None BUSINESS SESSION 1. CONSIDERATION OF PRELIMINARY ENGINEER'S REPORT FOR CITYWIDE LIGHTING AND LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT. Mr. Cosper, PLiblic Works Director, submitted the Preliminary Engineer's Report prepared by BSI Consultants for the Lighting and Landscape Assessment District for FY 1994/95. He stated that in order to keep the District in place, the Lighting and Landscape Assessment Act of 1972 requires that a series of actions be completed each year as detailed in the staff report. Due to the proposed increase in the assessment, a public meeting must be conducted which is tentatively scheduled for June 2, 1994, and a public hearing will be conducted at the July 5, 1994 Council meeting. Mr. Cosper then reviewed the Preliminary Engineer's Report advising that the District encompasses the entire City. The City is divided into four zones Citywide, P G A West, the Cove and Hwy. 111 North. He explained that the costs to maintain the District are assessed against various land uses based upon the benefit received. All types of land uses were converted to Equivalent BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 4 May 3,1994 Dwelling Units EDU) based upon the benefit the land-use type received from the District. The total number of EDU's for FY 94/95 is 24,887 as compared to 23,098 in FY 93/94. The proposed assessments for 1994-95 are as follows: Zone 1993-94 1994-95 Citywide $18 $35 PGA West $30 $46 Cove $26 $43 Hwy. 111 North $44 $78 He explained that the proposed increase in the assessments for the first three zones is due to adding administration costs to prepare the assessment district; higher maintenance costs for the Fritz Burns Park with its anticipated completion); addition of traffic signals; increased costs to maintain the Sports Complex due to expansion of programs; maintenance costs for the new Senior Center; addition of new subdivision landscaping in North La Quinta; and one-half of the maintenance costs for the Palm Royale Park. The proposed increase in Zone D Highway 111 North), is due to one-half the costs of maintaining the Palm Royale Park. Mr. Cosper advised that in order to proceed with the proposed assessment, the Council must approve the Preliminary Engineer's Report and schedule a public meeting and hearing date. He noted that approval of this report does not obligate the Council to the proposed fees. If the Preliminary Report is approved, notices will be sent to all property owners Mayor Pena suggested that the letter to be sent to all the residents include the reasons for the increases and the benefits that will be derived from the assessments. Mr. Cosper concluded that the report recommends utilizing BSI to do the notification process at a cost of $4,400 with the City supplying the envelopes and stamps for a total cost of $10,000. He noted that recent legislation allows for an alternative to the notification process of publishing a notice in the newspaper rather than mailing notices to each property owner. In response to Council Member Bangerter, Mr. Cosper advised that staff will continue to explore other potential funding sources during the process. Council Member McCartney questioned what the contract services" amount represents and Mr. Cosper advised that the Cove's contract services consists only of the palm tree trimrning contract and all other labor is in-house. He advised that the majority of PGA BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 5 May 3, 1994 West's landscape maintenance is done under contract, because it is more economical to have an outside service bid on medians with high intense type landscaping. In response to Council Member McCartney, Mr. Genovese, Acting City Manager, explained that if the services for PGA West were performed in-house, the costs would be included under personnel rather than contract services. Council Member McCartney asked for some detailed information regarding Zone B PGA West). Mayor Pena pointed out that at this point, only the process for the assessment district is being established, not the fees. Council Member Sniff felt that it is important that the noticing process be as efficient and comprehensive as possible, with notices being mailed to each property owner at least two weeks in advance. He concurred with the Mayor that the benefits should be emphasized in a letter and where the money is being applied. RESOLUTION NO.94-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, D[RECTING THE ENGINEER TO FILE AN ANNUAL REPORT FOR FISCAL YEAR 1994-95 IN CONNECTION WITH LA QUINTA LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1. It was moved by Council Members SnifflBangerter that Resolution No. 94-35 be adopted as submitted. Motion carried unanimously. RESOLUTION NO. 9?6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE REPORT OF THE ENGINEER FOR FISCAL YEAR 199?95 IN CONNECTION WITH LA QUINTA LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT NO.89-i. It was moved by Council Members Sniff/Bangerter that Resolution No.94-36 be adopted as submitted. Motion carried unanimously. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 6 May 3, 1994 RESOLUTION NO. 9?37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY THE ANNUAL ASSESSMENTS FOR CONSTRUCTION, MAINTENANCE AND SERVICING LANDSCAPING AND LIGHTING IMPROVEMENTS WITHIN THE BOUNDARIES OF THE ThRRITORY INCLUDED IN THE CITYWIDE LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 AND TO LEVY AND COLLECT ASSESSMENTS PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972 AND GIVING NOTICE THEREOF. It was moved by Council Members Sniff/Bangerter that Resolution No.94-37 be adopted as submitted. Motion carried unanimously. MOTION It was moved by Council Members Sniff/Bangerter to authorize BSI Consultants, Inc. to proceed with Phase II Notification) of the Professional Services Agreement for the Landscape and Lighting Assessment District 9-1, Fiscal Year 1994/95. Motion carried unanimously. MINUTE ORDER NO. 94-96b. 2. CONSIDERATION OF CITYWIDE PALM TREE TRIMMING CONTRACT. Council Member Perkins was pleased to see the City implement a date harvesting program for City-owned date producing trees. MOTION It was moved by Council Members Sniff/Bangerter to approve the contract specifications for the Palm Tree Trimming Project No. 94-02 and authorize staff to receive bids for the project. Motion carried unanimously. MINUTE ORDER NO. 9? 96c. 3. CONSIDERATION OF APPOINTMENT OF NEW MEMBERS TO THE BUILDING AND CONSTRUCTION BOARD OF APPEALS. In response to Council Member Bangerter, Ms. Honeywell, City Attorney, advised that Mr. Featheringill, the newly appointed Chamber President, may serve on both this Board and the Chamber Board without conflict. However, the members of this Board should be aware of the fact that the Brown Act will apply to them, as well as the conflict of interest rules. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 7 May 3, 1994 MOTION It was moved by Council Members Sniff/Bangerter to appoint Paul Anderson, Dennis Wish, Jim Hegge, Dan Featheringill, and Wayne Gardner to serve on the Board of Appeals and to replace the previously existing members. Motion carried unanimously. MINUTE ORDER NO.94-97. In response to Council Member Sniff, Mr. Hartung advised that this Board has no set terms. 4. CONSIDERATION OF RESOLUTION IN SUPPORT OF EXPANDING THE SANTA ROSA MOUNTAINS NATIONAL SCENIC AREA TO INCLUDE UNITED STATES FOREST SERVICE LANDS. Mr. Herman, Planning Director, advised that the Coachella Valley Mountains Conservancy has requested adoption of the proposed resolution to establish a scenic area in the U.S. Forest Service Lands. Council requested at its last meeting, additional information relative to its location and whether mountain bicycles would be prohibited. None of La Quinta is within the boundaries; however, there is some scenic area in La Quinta that will be affected by the Bureau of Land Management BLM) and their proposed rules and regulations relating to uses and activities in the scenic area. He advised that the BLM will be drafting regulations and holding meetings concerning certain trails and activities. In response to Mayor Pena, Mr. Herman advised that mountain biking, hiking, and equestrian will be permitted on some trails depending on the trail and its location. RESOLUTION NO.94-38 A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY OF LA QUINTA IN SUPPORT OF EXPANDING THE SANTA ROSA MOUNTAINS NATIONAL SCENIC AREA TO INCLUDE UNITED STATES FOREST SERVICE LANDS. It was moved by Council Members SnifflMcCartney that Resolution No. 94-38 be adopted as submitted. Motion carried unanimously. 5. REPORT OF PLANNING COMMISSION ACTION ON CONDITIONAL USE PERMIT 94-011 TO ADD A SECOND UNIT GRANNY FLAT) AND GARAGE TO AN EXISTING SINGLE-FAMILY RESIDENCE. APPLICANT: CARL WILSON. Mr. Herman, Planning Director, advised that on April 26, 1994, the Planning Commission approved on a 5-0 vote, the construction of a second unit granny flat) 576 BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes S May 3, 1994 sq. ft. with a two-car garage to be utilized for a family member 62 years of age or older. He stated that a covenant will be attached to the property in order to restrict it from being used as a rental Unit, and the Conditions of Approval require a Deed Restriction be recorded on the property. Mr. Herman displayed a drawing depicting the existing home and the proposed unit to be constructed on the adjacent lot, noting that the two lots will be merged into one. In response to Council Member Perkins, Mr. Herman advised that the property cannot be divided once the two lots are merged together, because it would not meet the minimum lot size of 7,200 sq. ft. Mayor Pena asked how the City can enforce the restriction placed on the property from being used as a rental. Mr. Herman stated that lending institutions should be aware of the restriction on the deed. He stated that allowance of a granny flat is mandated by State law. Therefore, the City can only create regulations to make it compatible. MOTION It was moved by Council Members Sniff/McCartney to accept the Planning Commission action on Conditional Use Permit 94-011. In response to Council Member Mccartney, Mr. Herman advised that there have been no negative comments since preparation of the staff report. Motion carried unanimously. MINUTE ORDER NO.94-98. 6. CONSIDERATION OF APPOINTMENT OF CANDIDATES TO THE YOUTH ADVISORY COMMITTEE. Mr. Bohien, Parks and Recreation Director, advised that on November 2, 1994, the Council directed staff to begin recruitment for the Youth Advisory Committee. During midyear budget review, the Council allocated $625 for this Committee and on April 14, 1994 a panel consisting of Marni Francisco, Recreation Supervisor, Rad Dewoif- Domingo and John Spangler, Middle School instructors, interviewed 12 students from La Quinta Middle School, Palm Desert High School, Indio High School, and Christian School of the Desert. Staff recommends that the following students be appointed to serve on the Youth Advisory Committee were asked to stand before the Council: BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 9 May 3, 1994 Name School Grade Brietta Krome La Quinta Middle School 7 Jennifer Barnes Indio High School 11 Jeremiah Anderson Christian School of the Desert 9 DJ Maston Quinta Middle School 8 Chad Holland La Quinta Middle School 8 Michael Garcia La Quinta Middle School 8 Rina Bliss Palm Desert High School 11 Mr. Bohlen advised that staff is also recommending the appointment of Willie Hughes, Arron Healy, Brandy Thomas, Jeffrey Pino and Cheri Hulet as alternates. These students will also attend the meetings but will not have voting privileges. He further asked that staff be directed to initiate meetings with the appointees and authorize a policy revision so that seven members can serve as regular committee members and the remaining five act as alternates. Council Member Bangerter expressed her delight in the formation of this committee and pointed out that next year there would only be one member representing the middle school category. Mr. Bohlen advised that reappointments will be conducted in October. In response to Council Member Sniff, Mr. Bohlen stated that based upon previous Council discussion, there would be representation from only middle school and high school students. At this time Mayor Pena congratulated the students being recommended for appointment and commended them for their interest in serving their community in this capacity. Mr. Bohlen then introduced Marni Francisco, Recreation Supervisor, and advised that she will be staffing the Youth Advisory Committee. Mayor Pena was impressed with the fact that the students basically identified the same problems they see in the community and issues they wish to address. MOTION It was moved by Council Members Sniff/Bangerter to appoint Brietta Krome; Jennifer Barnes; Jeremiah Anderson; DJ Maston; Chad Holland; Michael Garcia; and Rina Bliss to the Youth Advisory Committee. Motion carried unanimously. MINUTE ORDER NO.94-99. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 10 May 3, 1994 MOTION It was moved by Council Members Sniff/Mccartney to appoint Willie Hughes; Arron Healy; Brandy Thomas; Jeffrey Pina; and Cheri Hulet as alternates to he Youth Advisory Committee. Motion carried unanimously. MINUTE ORDER NO.94- 100. MOTION It was moved by Council Members Sniff/Bangerter to direct the Parks and Recreation Department staff to initiate meetings with the new appointees. Motion carried unanimously. MINUTE ORDER NO.94-101. MOTION It was moved by Council Members SnifflMcCartney to authorize a policy revision so that seven members serve as regular committee members and the remaining five act as alternates. Motion carried unanimously. MINUTE ORDER NO.94-102. 7. CONSIDERATION OF JOINT POWERS AGREEMENT AMONG THE CITIES OF COACHELLA, INDIAN WELLS, INDIO, LA QUINTA AND PALM DESERT AND RIVERSIDE COUNTY CREATING A REGIONAL AIRPORT AUTHORITY FOR THERMAL AIRPORT. Mrs. LiCalsi, Assistant to the City Manager, advised that a draft Joint Powers Agreement was prepared by Supervisor Larson's office to create a Regional Airport Authority for the Thermal Airport. The most significant change from the initial draft, which Council has reviewed, is that the Authority is no longer just a regional planning commission dealing with land use issues it is also an advisory council and provides advice on airport operations. The major provisions of the proposed agreement are outlined in the staff report. She added that the City Attorney has reviewed the draft agreement and her concerns have been discussed with County staff. Specifically, a concern addressed was that the County add e City as an additional insured on the County's liability insurance policy. To date, the County has not replied to this request. She noted that the cities of Palm Desert, Indio, and Indian Wells have approved the draft JPA. In response to Council Member Sniff, Ms. Honeywell, City Attorney, stated that relative to financial commitments, the draft agreement, in theory, states that each party must agree to become committed to any financial obligation. It also provides for a 90-day termination notice. She assumed that if the City is asked to participate in funding and we do not wish to do so, that we will be able to exercise our right to terminate the agreement. Ms. Honeywell commented that the liability issue is somewhat less clear. She stated that there are provisions in the agreement which states that each party to the agreement indemnify and hold each other harmless for actions taken by their employees involved BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 11 May 3,1994 in implementing the agreement. There is also a provision stating that any obligations entered into by the Authority should not be an obligation of the parties. Therefore, the agreement covers itself in terms of contractual obligations. Her concern, however is hat in theory it's a separate legal entity and could be sued in the event of a catastrophe occurring at the airport due to an operational or land use disaster. Therefore, since the City is not covered under our own Joint Powers Insurance Authority for this type of a liability exposure, she felt that the County should add the City as an additional insured, specifically for their County airport operation. Council Member Perkins concurred that the City should be named as an additional insured and asked if that wouldn't protect us. Ms. Honeywell stated that this would give us the same coverage as the County has determined they need for themselves for the operation of the airport. Robin Nagel, Supervisor Larson's Office, explained that the Authority would replace the Riverside County Planning Commission on land use matters within its jurisdictions. She commented that the document states that if any portion of the area is annexed by a member city, the Authority would also replace that city's Planning Comrnission on land use matters in that area. It does not, however, replace the final authority of the Board of Supervisors or a subsequent City Council to make the final decisions. Relative to the airport advisory function, the Authority is intended to replace the County's Airport/Land Use Commission which is advisory to the Board of Supervisors. Riverside County is retaining ownership and responsibility for Thermal Airport, therefore, it wasn't their intent to pass any liability onto member cities. She stated that the Board of Supervisors is retaining its final authority regarding those decisions. She believed that they do not indemnify their Planning Commission for recommendations that go before the Board. If they are sued for a land use decision, the Board of Supervisors of Riverside County is generally named, as well as in past litigation, relative to their airports. She conveyed to County staff, the concern of this Council's relative to insurance, however, she had not received an answer. She noted that this has not been a concern of the other cities. Regarding funding, Ms. Nagel stated that staff support and operations for the Authority will be provided by Riverside County. Should a member city wish to buy some measure of responsibility and decision-making responsibility relative to the airport, there is a mechanism in the agreement to accommodate that. She stated that it was not their intent to require as a condition of membership in the JPA assumption of liability and fiscal responsibility. Upon reference to the draft JPA attached to the staff report, Ms. Nagel stated that Council received the wrong version of the agreement because it has been subsequently modified and asked that this matter be continued. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 12 May 3, 1994 MOTION It was moved by Council Members McCartneylBangerter to continue this matter to May 17, 1994. In response to Council Member Sniff, Ms. Nagel advised that Counsel will receive a modified version for review. Motion carried unanimously. MINUTE ORDER NO.94-103. 8. CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE ISSUANCE BY THE LA QUINTA REDEVELOPMENT AGENCY OF ITS LA QUINTA REDEVELOPMENT PROJECT, TAX ALLOCATION REFUNDING BONDS, SERIES 1994, AND MAKING CERTAIN DETERMINATIONS RELATING THERETO. Council Member Bangerter asked if she needs to abstain from this matter and Ms. Honeywell advised not. Mr. Geno?esc, Acting City Manager, advised that the Redevelopment Agency is considering refunding two of the three outstanding bond issues for Project Area No.1. In January 1994, the Financial Advisor determined upon review of the bond issues that the Agency could save some additional bond debt service interest savings and the release of bond debt service reserve funds. Subsequently, the Agency Board directed staff to continue with the elements relating to the refunding. He stated that the Agency's Financial Advisor and Bond Refunding team explored a number of mechanisms and alternatives to both restructuring and refunding the bonds, and felt that the proposed alternative seemed to be the most effective. He advised that the refunding is an essential component of meeting the cash flow requirements of the Redevelopment Agency and to maintain a positive cash flow position and complete all Agency infrastructure improvements as planned. At this time, Mr. Genovese introduced Tom DeMars with Fieldman & Rolapp, financial advisors; Fritz Stradling, Bond Counsel with Stradling, Yocca, Carison & Rauth; and Frank Spevacek with RSG. Tom DeMars, Financial Consultant with Fieldman Rolapp and Assoc., advised that since the interest rates have dropped in the Municipal Bond market, they have been reviewing for approximately 1 1/2 years, La Quinta's Redevelopment Agency tax allocation bonds. He stated that they were precluded from refunding those issues in January 1993 because of the PGA West properties with the RTC's involvement and renegotiation with the County relative to the tax increment. Now that these things have occurred, they feel that it's prudent to pursue refunding both series and obtain insurance. He stated when refunding, you want to look at anywhere from 3% to 5% savings on a net present value basis for the bonds being refunded. For the 1989 and 1990 series we are currently at BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 13 May 3,1994 approximately 3 1/2% There are exceptions to going below the 3% if you need immediate cash-flow relief. He advised that we are within a good interest rate environment to secure in excess of a 3% savings. He stated that the 1991 series is not being considered because the interest rates were at a favorable level and refunding would have a negative impact on the overall savings for all three issues. Mr. DeMars advised that there is a Reserve Fund Surety where insurance companies will insure the reserve fund. For example, in the 1989 issue there is approximately $735,000 in a reserve fund held by the trustee. In the 1991, there's about $734,000 in a reserve fund. Therefore, by releasing the 1989 and 1991 reserve fund, the Agency would obtain about $1.4 million in reserve fund saving He noted that the cost to complete these transactions is approximately $80,000. Additionally, because of the 3%-S % savings, there's an additional $877,000 of net present value savings as well as the $1.4 million in reserve funds. He advised that in order to stay within the $35 million maximum bonding capacity for Project Area 1, it must be structured as a premium bond. He explained that there would be higher market interest rates on the earlier maturities that would be bid up by the market generating more money for the Agency. He further stated that they are negotiating the sale of the refunding bonds versus a competitive sale in order to time the market better. In response to Council Member McCartney, Mr. DeMars stated that if they receive approval as anticipated, they would be able to close around the end of May. He advised that the interest rates should be known by the end of next week, and further added that the interest rates on the old bonds were from 7.78% to almost 8%. By refunding, the rates would be around 6.10% or 6.15% range with a net interest cost. Fritz Stradling, Bond Counsel with Stradling, Yocca, Carison & Rauth, explained that there are three entities involved. The City must approve all bonds that are issued by the Redevelopment Agency. The Redevelopment Agency will then authorize the issuance of the bonds and then they will be sold to the Financing Authority at which time the Authority will resell the bonds to the underwriters. He advised that the purpose of the Authority is because we may be considered to generate new money because of the savings. Under the law, if there is a pure refunding, it can be done by a negotiated sale. However, if there is new money issued, it must be done by competitive bidding. In order to comply with the negotiated sale recommended by the Financial Advisors, they decided to go through the Authority. * Frank Spevacek, RSG, explained that they have prepared a 10- year projection of tax increment revenue that may be generated within Project Area No.1. They used a 13.6% growth rate for next year and 3 1/2% growth project for subsequent years. He noted that BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 14 May 3, 1994 the base year value of the Project Area is $200 million which is based upon the adjusted base year roll for 1983-84. The current year assessed valuation is $1.2 billion. Of that revenue, it generates approximately $10.8 million in tax increment revenue of which $2 million is applied to the Agency's housing fund and approximately $7 million to other taxing jurisdictions. From the $7 million, three agreements provide that those payments are subordinated to any bond debt service payments currently outstanding. Therefore, if tax increment fell in the Project Area, the bonds being refunded would have first call on the revenue versus payments to the taxing jurisdictions. He advised that approximately $500,000 of that revenue is in a not-subordinated position, whereas their payments would come first prior to the bond debt service payment. Mr. Spevacek concluded that the projected 13.6% assessed value increase between this year and FY 1994/95 has resulted from the sale of the Landmark Land properties to KSL. In December 1993 those sales closed, and basically, we're looking at an increase of approximately $65 million in valuations from the closed sale. He noted that their projections do not take into account any increase beyond the KSL sale. RESOLUTION NO.94-39 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE ISSUANCE BY THE LA QUINTA REDEVELOPMENT AGENCY OF ITS LA QUINTA REDEVELOPMENT PROJECT, TAX ALLOCATION REFUNDING BONDS, SERIES 1994 PROJECT AREA NO.1) AND MAKING CERTAIN DETERMINATIONS RELATING THERETO. It was moved by Council Members Sniff/McCartney that Resolution No. 94-39 be adopted as submitted. Motion carried unanimously. 9. TRANSMITTAL OF TREASURER'S REPORT DATED MARCH 31, 1994. MOTION It was moved by Council Members Sniff/McCartney to receive and file the Treasurer's Report dated March 31, 1994. Motion carried unanimously. MINUTE ORDER NO.94-104. 10. APPROVAL OF CONTRACT EXTENSION FOR STREET-SWEEPING SERVICES. Council Member McCartney stated that it is indicated in the staff report that the cost per curb mile is $16.95 and asked if that is the best price for these services. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 15 May 3, 1994 Mr. Cosper, Public Works Director, stated that this price is very competitive noting that it is the same price we've been paying for the past two years and considering the increase in fuel and the NPDES requirements soon to be imposed. In response to Council Member McCartney, Mr. Cosper stated that there are currently only two firms performing this service, one of which we have a contract with. He stated that staff did not contact the other firm because they have not increased their rolling stock or changed their street works operations to merit a decrease in their original bid amount. Council Member McCartney felt that we should know for certain that we have the best price for these services. MOTION It was moved by Council Members Sniff/Bangerter to approve a one year contract extension with California Street Maintenance for street sweeping services. Motion carried with Council Member McCartney voting NO. MINUTE ORDER NO. 94-105. CONSENT CALENDAR APPROVAL OF DEMAND REGISTER DATED MAY 3, 1994. 2. APPROVAL OF FINAL ACCEPTANCE OF TRACT 20052-3 LAGUNA DE LA PAZ. 3. REMOVED See Business Session No.10). MOTION It was moved by Council Members Bangerter/McCartney to approve the Consent Calendar as amended. Motion carried unanimously. MINUTE ORDER NO. 94-106. STUDY SESSION DISCUSSION OF ORDINANCES CREATING A PARKS AND RECREATION COMMISSION AND A CULTURAL AFFAIRS COMMISSION. Mr. Bohien, Parks and Recreation Director, presented a brief review of the background of this matter advising that in January 1994, Council directed the Community Services Commission to develop ordinances, mission statements, and a workplan for a Parks and BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 16 May 3, 994 Recreation Commission, Cultural Affairs Commission, and a Human Services Commission. He advised that the Council has received the proposed ordinances for the Parks and Recreation Commission and the Cultural Affairs Commission which have been reviewed by the City Attorney. Staff recommended only one meeting per month or on an as needed basis' rather than the Commission's recommendation of two meetings per month. Council Member Sniff felt the Commission did a good job and agreed that one meeting per month would be sufficient with a provision that they could have additional meetings as needed. Council concurred. In response to Council Member Sniff, Mr. Genovese, Acting City Manager, advised that staffing of the commissions have not been determined, but that information will be provided at the May 17th Council meeting. In further response to Council Member Sniff, Mrs. Juhola, City Clerk, advised that we have begun to advertise in the newsletter. Mr. Bohlen advised that staff anticipates presenting the draft ordinance for the Human Services Commission at the first meeting in June. 2. DISCUSSION OF TRANSFER OF DEVELOPMENT RIGHTS PER THE HILLSIDE CONSERVATION ORDINANCE. Mr. Herman, Planning Director, advised that the City currently allows for the transfer of development rights from the hillsides of one unit per ten acres to any other residentially zoned property in the City. Once transferred to a particular parcel or to an individual, it cannot be retransferred. Since the ordinance was adopted in 1989, there has only been one transfer, which was to the Quarry from Mr. Lusardi. Since then, the Quarry received a General Plan Amendment and Change of Zone and determined that this transfer was unnecessary. The Quarry wishes to give the units back to Mr. Lusardi but is unable to do so. Therefore, staff suggested that the ordinance be amended to allow the subsequent transfer to enhance our options of preservation of the mountains. He noted that staff would be working in concert with the City Attorney's office in drafting the regulations. In response to Council Member McCartney, Mr. Herman stated the City keeps track of each transfer, therefore, the Council must determine the number of times they can be transferred. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 17 May 3,1994 Ms. Honeywell, City Attorney, stated that Mr. Lusardi was paid for the option on the 36 units. She further stated that the transfers should be tracked each time to make sure they are recorded properly and the density is not increased. This is a policy issue as to how freely the Council wishes them to be transferred or whether they should be used or lost with the first development. Council Member McCartney asked if the City should be in the position of sharing the revenue if there is an economic benefit to the transfer. In response to Council Member Sniff, Mr. Herman stated that there are development transfers nationwide, but not within the Coachella Valley. Council Member Sniff expressed concern that this could become a commodity and felt that this needs to be researched closely. Mr. Herman stated that the way the transfers have been controlled is that the density can never be increased more than 20% on any given property and it is only good in the City of La Quinta. Council Member Perkins felt that there has to be some flexibility. Council Member McCartney wished to see some reasonable formula or transfer fee. DEPARTMENT REPORTS Administrative Services DeDartment Mrs. Juhola, Administrative Services Director, stated that she is scheduling the Volunteer Firemen's Appreciation Dinner and asked the Council to let her know if they would prefer Thursday, June 2nd, or Friday, June 3rd. PUBLIC COMMENT Robert Tyler, 44215 Villeta Drive, commented that his daughter had an occasion to dial 911 and found the response time to be extremely slow. He stated that he recently read a news article that 911 calls are routed to Riverside and that consideration is being given to monitoring them locally. He encouraged the Council to do whatever is necessary to bring this about. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 18 May 3, 1994 Mayor Pena stated that CVAG has taken action on this matter, and they are currently looking at locating a 911 facility for fire and police at the CHP Headquarters. MAYOR AM) COUNCIL MEMBERS' ITEMS None CLOSED SESSION 1 Conference with Legal Counsel concerning settlement agreement with Burkett and Washington Square pursuant to Government Code Section 54956.9 Potential Anticipated Litigation). 2. Public Employee Discipline/Release Pursuant to Government Code Section 54957. 3 Under Government Code Section 54957: a. Consideration of Public Employee Appointment re: City Manager's Position. b. Consideration of Public Employee Employment re: Review of personnel roster, overall staffing and consideration of necessity for recruitment for potential open positions of City Manager, Assistant City Manager, and reassessment of entire administrative staff lunctions including City Manager, Assistant City Manager, and Assistant to the City Manager. 4. Conference with Legal Counsel concerning potential litigation concerning the pool fencing issue pursuant to Governinent Code Section 54956.9. Council recessed to the Redevelonment A?ency Meetin?. 7:00 P.M. The Council reconvened to oDen session. Ms. Honeywell, City Attorney, advised that the City Council has concluded a Closed Session under Government Code 54957 Personnel and has decided to appoint Thomas Genovese as the City Manager and has directed the City Attorney to negotiate a contract with him. The City Council has also directed, under Closed Session 54956.9 Potential litigation concerning the swimming pool fence issue that the Mayor send a letter of support and concern to the appropriate State agency concerning the applicability of the rules to gated communities throughout the State and La Quinta in particular. BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02 City Council Minutes 19 May 3, 1994 There being no flirther business, the meeting was adjourned upon motion by Council Members SnifflMcCartney and carried. R ectfully submitted, SAUNDRA L. HOLA, City Clerk City of La Quinta, California BIB] 01-13-96-U01 03:18:48PM-U01 CCMIN050394-U02