1993 05 11 CC Minutes; LA QUINTA CITY COUNCIL
MINUTES
MAY 11, 1993
Special meeting of the La Quinta City Council was called to order by Mayor Pena at 7:00 P.M.
followed by the Pledge of Allegiance
PRESENT: Council Members Bangerter, McCartney, Perkins, Sniff, Mayor Pena
ABSENT: None
Mayor Pena advised that the public hearing scheduled for this evening is for the formation of
Assessment District 92-1.
At this time, Mayor Pena and Council Member Bangerter advised that they would be abstaining
from this issue due to conflict of interests. They left the dais.
Mayor Pro Tern Sniff advised that this is the time and place fixed for objections or appeals in
respect to the assessment and work under and pursuant to Resolution of Intention, Resolution
No.92-56.
Mrs. Juhola, City Clerk advised that the City Council has received a notice of the Affidavit of
Posting; Affidavit df Mailing Notice of the Adoption of the Resolution of Intention and Filing
of Map of Assessment District No.92-i; the Affidavit of Compliance with the Requirements of
the Municipal Improvement Act of 1913 for Posting and Mailing Notices in Connection with
Assessment District No.92-i.
Council Member McCartney noted that additional information has been compiled for the City
Council and wished to have it made available to the public and wished to have it entered into
the record and considered by the Council at the appropriate time in the proceedings.
Mr. Fritz Stradling, Bond Counsel with Stradling, Yocca, Carlson & Rauth, explained that the
hearing is a continued hearing from June 29, 1992. This is a proceeding under the 1913 Act
in which the public is invited to speak and be heard for or against the proposed Assessment
District. Following the public hearing, the City Council will decide whether to go forward or
modify the boundaries. The assessments would be confirmed by Resolution action and the
property owners would then have 30 days in which to pay the assessment. At the end of the
cash-payment period, if the assessment is not paid, it would then go to bond and be placed on
the tax rolls. He noted that there is a discount for paying cash during the 30-day period.
Mr. Tom DeMars, Financial Consultant with Fieldman Rolapp and Assoc., advised that after
the 30 day, cash-collection period, the assessments of those who chose not to pay cash, would
be issued in bonds in a total aggregate on an individual-assessment basis on each particular
parcel. The term of the bonds would be estimated at 15 years with an interest rate of
approximately 3%.
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Mrs. Juhola, City Clerk, advised that protests have been received from William and Anna
Shield; Trudie Smith and Bruce Butler.
Mr. Joe Kicak, Assessment Engineer, reviewed the revised boundary map for proposed
Assessment District 92-1. The proposed improvements include street improvements, storm
drains, sanitary sewer and water system improvements. Bids for the work were received on
May 5, 1993. Of the eight bids received, the lowest was $3,889,923 with the highest being
$4,781,764. The Engineer's estimate was $4,250,000. Based on the lowest bidder, Kenko, staff
has applied the construction contingencies and the incidentals appropriate to the assessment
district providing for a total project cost of $4,960,369.09. That cost will be shared by
Coachella Valley Water District in the amount of $555,000; the Redevelopment in the amount
of $2,711,000; the City of La Quinta in the amount of $3,656,387; with the remaining balance
of $1,304,909 going to assessment. The balance to go to assessment would be spread to
individual properties based on the benefit which they receive from the improvements. Basically,
there are two types of improvements being assessed:
1. Sanitary Sewer is being installed throughout the whole area. Those improvements are
being assessed to the individual properties benefiting from the improvements and it is
based on frontage, laterals and unit of service. The commercial properties are being
assessed based on acreage and lateral provided to the properties.
2. Underground of utilities in the Yucatan Peninsula area which is being requested by the
property owners. The cost of those facilities is only being assessed to those parcels
benefiting within that area.
Based on the spread and benefit received, the properties that receive sewer assessment only
single-family properties) last year was estimated at $3,400. Based on the bids just received,
that assessment is approximately $1,738. The Yucatan area costs last year varied from $8,000
up to $17,000. The recent bid reduces those assessments by about 30%.
Mayor Pro Tem Sniff declared the PUBLIC HEARING OPEN.
OPPONENTS
Robbie Stanford, 51-863 Avenida Obregon, asked that her letter, which she read be added to
the list of protests. She believed that to proceed with the improvements in the Yucatan
Peninsula area is not fair it's giving special treatment to a group of homeowners who could
afford to put gravel on their streets or afford to put the streets in themselves. She urged that
the City come up with a plan regarding the Phase V improvements that is fair to everyone
concerned.
Bob AIcala, 51-470 Avenida Carranza, felt that a priority should be the intersection of
Montezuma/Eisenhower intersection. He noted that the original plan for Phase V was to work
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its way down the Cove block by block and asked why that plan isn't being followed to the extent
that funds are available. It's a logical sequence of development.
Betty Marra, 51-745 Avenida Rub io, presented a petition demanding that Phase V be completed
from Durango north to Montezuma and from Eisenhower west to Montezuma and not be left out
for another three or four years.
Nancy Nard, 78-786 Bottlebrush, expressed concern about her area being left Out of Phase V
she didn't see how it could cost that much more to do two additional streets, as to wait will end
up costing the property owner more money.
Audrey Ostrowsky, P.O. Box 351, questioned what is being proposed by the City and
questioned the legal processes being used. She requested that the City proceed with Phase V
block-by-block as originally planned as some of the septic tanks are leaking.
Lois Jean Paul, 51-825 Avenida Rubio, expressed concern about money being spent on other
things i.e. block walls with tile) when other kinds of improvements are needed.
Judith Owens, 51-682 Avenida Ramirez, was surprised to see the leap-frogging being proposed
as there are many old homes in her area that have old and leaking septic tanks. She believed
that people can drive on dirt streets, but sewers are needed She felt that some alternatives as
was proposed by Council Member McCartney need to be considered.
Donn? Galray, 51-720 Avenida Rub io, commented on the short notice advising them that their
area will not be improved. She did not believe that Tampico area needs to be done, especially
if it's going to be vacated. She felt that it's unfair to proceed with the Yucatan area for only
35 homes.
Carol Thomason, 51-988 Avenida Durango, advised that she lives in an improved area. To
leave out an area is the biggest discrimination she's seen against an area. The only people using
the streets in the Yucatan area are the people who live there doing that area is not of public
benefit.
Dave Woodard, 51-701 Avenida Juarez, believed that the way Phase V is being proposed is
unfathomable. There are leaking water pipes and leaking septic tanks which will cause a health
hazard. He felt that it's incumbent upon the City to continue with Phase V as developed
originally in an orderly and sequential manner.
Michael Hint, 77-625 Hidalgo, said that he has been waiting patiently for the improvements to
reach his area so he can hook up to the sewer. His home is 30-40 years old and the septic tank
no longer works and he's going to have to buy a new leach pit for about $2,000.
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Jeff Jackson, 51-450 Avenida Carranza, said that he bought his home with the promise that he
would have curbs, gutters and sewers. He understood that Phase V was a top priority and now
hears that his area isn't even planned for construction for a number of years.
Janeil Esmeralda, 51-377 Avenida Carranza, spoke in opposition to the revised plan and felt
that the Council is listening to special groups in the City.
Janet Stone, 51-360 Avenida Vallejo, protested the proposed revisions she felt that the
improvements should be completed as originally planned.
Sherry Lyons, commented on the City spending money in other areas like the Civic Center and
not having funds available for needed improvements.
Craig Brunner, 51-255 Avenida Velasco, said that he's lived here for nine years and it's time
to get curbs and gutters if they have to wait to have the whole thing done at once, then they
have to wait but it should all be done at the same time.
Louis Briggs, 51-290 Avenida Carranza, spoke in opposition to the revised plan.
A gentleman who lives at 51-695 Avenida Martinez, questioned the reason for excluding them.
Lack of these improvements depreciate the value of their property There is no reason to
exclude anyone.
Scott Russell, 51-225 Avenida Velasco, felt that to exclude a part of Phase V is unfair. He
commented on the cost of the block wall on Washington, the Civic Center, new Avenue 52 and
that it makes people in this area feel unimportant.
Ed Carlos, 51-970 Avenida Carranza, owns two lots and has curb and gutter on one side, but
not on the other side and didn't understand why they couldn't have gone around the corner. He
believed that other projects need to be put on hold and Phase V finished.
Council Member Sniff asked the City Manager to respond to some of the concerns expressed.
Mr. Hunt, City Manager, advised that the City's sales tax base has increased, but those funds
cannot legally be used for the Cove Improvement Project.
Mr. Reynolds, Public Works Director, advised that the problems encountered with the
Tampico Improvements were due to lID not removing power poles in a timely manner so that
the storm drain could be installed.
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PROPONENTS
Joe Daniel, 51-315 Avenida Juarez, advised that the residents of the Yucatan Peninsula area
have begged the City to do the improvements in their area. On one occasion, an individual
could not get out due to flooding. He felt that this has become an issue of have's and have
nots. They are not the have's" they don't have streets, curbs, gutters and sewers. They
asked for fairness, noting that they are the only area in the City without pavement Property
values are not an issue they only want to be able to get in and out and not have to breathe dust.
Kent Cornell, 51-380 Avenida Rubio, supported the proposed configuration for Phase V. He
understood that there is a shortfall in funds which requires a review of the project. He didn't
know why sewer cannot be installed in the entire area, since the people are paying for it. He
supported proceeding with the bids as has already been put out for bid and then go to bid on the
remainder of Phase V for the sewers.
Paul Quill, 51-245 Avenida Rubio, urged the Council to proceed with the modified assessment
district noting that it will mitigate the PM10 issues in the Yucatan Peninsula area along with the
flooding problems. The City will get the project done at the best price we will ever get it and
there is a positive bond market. A vote against this project will lose thousands of dollars in
engineering costs. He was in favor of improving all of Phase V, but we need to proceed with
the modified boundary plan at this time.
Joe Kicak, Assessment Engineer, responded to questions advising that the wall on Washington
Street was requested and paid for by the adjacent property owners through an assessment district.
Regarding Montezuma and Eisenhower, a portion of that intersection will be constructed during
this phase. Montezuma was redesigned to provide through traffic from the west end all the way
to Eisenhower with the balance being done in the next phase. He then explained that the
Bermudas/Cadiz line is operating to capacity so the trunk in Tampico is necessary to serve the
balance of the sewer, north of Durango. The storm drain system is similar, in that the
remaining Cove area needs to drain easterly to the storm drain system in Bermudas
In response to Mayor Pro Tem Sniff, Mr. Kicak advised that the original cost for all of Phase
V was $14,945,950. This revised project is $4,278,915. The total project cost which includes
incidentals and contingencies is $17,300,00 and this one is $4,960,000. The City contribution
for the total project was $11,000,000 and now it's $3,000,000.
In response to Mayor Pro Tern Sniff, Mr. Reynolds advised that during the City's first eleven
years of incorporation, there have been 32 capital improvement projects totalling more than $63
million. Of that amount, $23 million was for the flood control facilities and the remaining $40
million was directed at other capital projects like the widening of Washington; realignment of
Avenue 52, parks development and medians, as well as the Cove Improvement Project.
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Regarding the sewer system, he noted that once it's installed, it will be available for use by the
individual property owners who wish to connect. There are costs involved in hook-up of
$4,000-$5,000 for CVWD charges and abandonment costs.
A gentleman in the audience asked if the City can hold onto this money and wait and do the
entire project at one time, and also, can the City assure that this project will be the City's top
priority
Mr. Hunt, City Manager, advised that if that is Council's direction, staff will certainly assure
that it is top priority.
In response to Council Member Sniff, Mr. Hunt advised that staff could come back in 60-90
days with a report on forming another Assessment District. Regarding the SB3OO funds, he
advised that if we don't go forward with an Assessment District by June 30, 1993 those funds
would be lost.
Mr. Kicak advised that to make changes in the Engineer's Report would cost approximately
$60,000.
MOTION It was moved by Council Members Perkins/Mccartney that the public hearing be
closed. Motion carried unanimously. ORDER NO. 93-117.
Council Member McCartney suggested discussion regarding an alternative proposal and asked
staff to brief the Council.
Mr. Speer, Ass't. City Engineer, advised that the alternative project consists of re-bidding the
project, installing sewers in all of the streets in the Cove and proceeding with the street work
as it's currently shown on the down-sized project. In order to accomplish that, we would have
to take Out the sewer plans that are in the current set of plans and insert the ones used in the call
for bids last year and go ahead with the rest of the plans as they are currently prepared. In the
area where the sewers are installed, we would patch the sewer trench and overlay the street with
one-inch of asphalt. This will add about 600 property owners to the Assessment District.
Council Member McCartney asked if under this proposal, would there be any home in Phase
V Cove Area, without sewer service available and Mr. Speer advised not.
Council Member McCartney referred to a May 7th memo from the Engineering Department in
which the source of funding is discussed. It was his understanding that the $3,149,800 is
allocated to go 100% to streets and Mr. Speer advised streets and storm drains.
In response to Council Member Perkins, Mr. Stradling with Stradling, Yocca, Carlson & Rauth
advised that at the present time, the Council has an Assessment District of the whole area with
sewer, street and storm drains for the whole area. What the Council would be doing is keeping
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the Assessment District as is, but eliminating some of the work. However, the City only has
bids for a portion of the sewer work, so if the assessment is confirmed at this time without
knowing what the work will cost, it will have to be done based on an estimate. You can hold
off on confrrming the assessments and take bids on the new work and confirm the assessments
at a later date.
Regarding the formation of a new assessment district, Ms. Honeywell noted that we would have
to comply with the new 45-day noticing requirement, which would mean that it wouldn't be
placed on the tax roll until next year.
Council Member McCartney asked if we can call for bids for all the work and meet the time
frames and Mr. Hunt advised that is correct.
Council Member Sniff commented that if we go forward with sewers only in some areas, it's
for the mains only does not include hook-ups. It would mean that the streets will remain the
same with no curbs and gutters and will have to be torn up again for the water lines and street
reconstruction. He felt that this will use up some of our fiscal resources and possibly cause a
delay.
Council Member Perkins said that if we jeopardize doing what's on the board, that will delay
everything for one year. He felt that it may be best to go ahead with what's on the board and
immediately start another Assessment District for sewers for the rest of the Cove and possibly
we'll have the funds to do the streets at the same time.
Council Member McCartney believed that we can continue this hearing until the bids come in
for the new Assessment District and at that time we can make a choice as to whether to do the
alternative plan or the plan that's before the Council this evening.
Council Member Sniff believed that the Council should act on the proposal before them and
direct staff to proceed to form the next Assessment District dealing with the area not included
in the present proposal for the complete work.
Council Member McCartney believed that everyone deserves to have sewers and that we should
move forward as we should have previously. This does not make economic sense and flies in
the face of logic to wait another year was difficult for him to consider.
Council Member Perkins didn't disagree, he was just concerned about jeopardizing getting
something on the tax rolls.
Mr. Hunt, City Manager, advised that staff's best estimate is that the time-frame can be met in
re-bidding the project.
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For clarification, Council Member Perkins asked if what is proposed includes what's on the
board and in addition, the sewers for the balance of the Cove and later as funds become
available we will do the streets and water lines and Council Member McCartney advised that
is correct.
Council Member Perkins asked if there are any legal problems with this proposal and Ms
Honeywell advised not.
Mr. Stradling advised that the action before the Council at this time would be not confirming
the assessments, but calling for new bids and then confirming the assessments based upon the
new bids.
MOTION It was moved by Council Members McCartneylPerkins to continue deliberations of
assigning the assessments in order to enable staff to go out and re-prepare the plans so that they
can be re-bid to include both the down-sized area that has been under discussion including streets
and sewers and add to that a sewer work only for the balance of the Cove area in Phase V and
continue deliberation until June 29th at which time the new bids would be received and actual
assessments determined. Motion carried on the following roll call vote:
AYES: Council Members McCartney, Perkins
NOES: Mayor Pro Tem Sniff
ABSTMN: None
ABSENT: Council Member Bangerter and Mayor Pena
MINUTE ORDER NO.93-118.
There being no further business the meeting was adjourned upon motion by Council Members
McCartneylPerkrns and carried
ReMpctfully bmjtte???
A City
Clerk
City of La Qumta California
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