1992 06 29 CC MinutesS LA QUINTA CITY COUNCIL
MINUTES
JUNE 29, 1992
Special meeting of the La Quinta City Council was called to order
at 7:00 by Mayor Pena.
PRESENT: Council Members Bohnenberger 7:40 P.M.), Rushworth,
Sniff, Mayor Pena
ABSENT: Council Member Franklin
1. CONSIDERATION OF FORMATION OF ASSESSMENT DISTRICT NO. 92-1.
Mayor Pena advised that he will be abstaining as his residence is
within proposed Assessment District 92-1.
Mr. Genovese, Ass't. City Manager, advised that the Phase V of the
Cove Improvement Project was initiated in October 1991 with Council
adopting the necessary resolutions of intention to form Assessment
District No. 92-1 on May 26, 1992. Based upon those actions, it
was staff's intent to have bids received prior to this hearing.
The purpose of having the bids received, is to have actual costs
associated with the improvements prior to the formation of the
District and confirming the Assessments. When the project was put
to bid, it was anticipated that all of the other public agencies
involved would produce completed plans in biddable form in adequate
time in advance of the bid date. However, this has not occurred,
so the Engineer of Work has extended the bid receipt date to a time
uncertain. Therefore, any confirmation of assessments would have
to be based on the Engineer's estimate of the total cost of the
work. The City has not previously confirmed assessments based on
estimates because of the uncertainty of the actual cost of the
work, and the related complications with the Assessor's Roll.
Also, the property owners will not know the true amount of their
assessment at the time of the hearing. In order to have sufficient
funds available to cover the costs of the work, the assessments
would have to be higher than they should be to cover the cost of
the work. If the higher assessments are levied, it would be
necessary to modify the assessments at a later date and also to
reimburse cash to the property owners that paid in cash.
Because, the City Staff is uncomfortable with proceeding with the
confirmation of assessments based upon estimates, they recommend
that the hearing be continued to January 11, 1993. Continuance
will allow the following to occur:
1) Extension of the bid date to allow complete bid package to be
bid on by all interested contractors.
2) Allow for the confirmation of assessments on actual bid
amounts.
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3) Complete review of the financing for the project.
Mr. Reynolds, City Engineer, expressed concern about confirming
assessments based on estimates. The estimates the residents
received are quite high because staff didn't wish to duplicate the
situation which occurred last year in the Indian springs area,
wherein the bids came in higher than the estimates. He noted that
he just received the plans and specifications this date from
Imperial Irrigation District for the undergrounding of utilities.
He supported the continuance as he would rather move forward with
solid figures.
Fritz stradling, City Attorney with Stradling, Yocca, Carlson,
advised that this is a Combined Hearing under the Majority Protest
Act of 1931 and the 1913 Act. He briefly reviewed the legal
procedures of the Acts.
Joe Kicak, Engineer of Work, Kicak & Associates, described the
proposed boundaries, advising that there are basically three areas
involved: Area 1 consists of Indian Springs Country Club; Areas 2
consists of Sagebrush, Bottlebrush and saguaro; Area 3 consists of
the south end of the Cove, bordered by Avenida Bermudas and
Eisenhower on the east; Montezuma on the west; Durango on the south
and North of Tampico on the north including the area known as
Yucatan peninsula.
Mr. Kicak then reviewed the work to be done in each area as
follows:
Area 1 Street Improvements, storm drains, water system
improvements, sanitary sewer and undergrounding of
utilities.
Area 2 Street Improvements, storm drains, and sanitary sewer.
Area 3 Street Improvements, storm drains, water system
improvements and sanitary sewer and undergrounding of
utilities in the Yucatan Peninsula Area.
Council recessed at this time.
Council Member Bohnenberger joined the meeting at this time.
PUBLIC HEARING OPEN
Audrey Ostrowsky, P.O. Box 351, La Quinta, believed that the work
should start at the time the assessments are levied so that the
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property owners aren?t paying an assessment a year in advance of
the benefit of the work. She asked why she wasn?t given the
opportunity to have her utilities undergrounded.
Mr. Kicak responded to the concern about timing and explained that
the City is handicapped with determining when the work will begin
as the process is dictated by State law and is very specific as to
what happens and when it happens.
In response to Mrs. ostrowsky's question regarding the status of
Phase IV, Mr. Reynolds advised that Phase IV should be complete in
4-6 weeks.
Wally Reynolds, 79-860 Fiesta, expressed concern over the cost of
undergrounding of utilities within Indian Springs and asked if the
cost for Roudel Street is for complete rebuilding.
Mr. Kicak explained that the costs were calculated and estimated
from the property line to the meter panel. Regarding Roudel
Street, Mr. Reynolds stated that the intent is to perform
reconstruction on any street impacted by underground construction
so that there will be uniformity in appearance.
Leslie Daniel, 51-315 Juarez, understood that there is a procedure
in which the assessments can be placed on the tax rolls after the
deadline.
Mr. Stradling advised that he knows of no procedure in which
assessments can be placed on the tax rolls for FY 92-93 after the
August deadline.
John McManus, 79-340 orseshoe, asked why he should be assessed for
undergrounding of utilities, when his street is already
undergrounded. He also questioned the interest rate on the bonds
and the cost to hook-up to the sewer.
Mr. Kicak advised that the property owners in areas with
undergrounding are being assessed at ten percent of what the others
are being assessed, as there is a philosophy that all properties
derive a benefit in terms of visual aesthetics. Regarding hook-up
costs, he advised that no one will be required to hook-up, but for
those who wish to, the cost varies depending on the location of the
house to the sewer line, and he noted that there is about a $1,700
treatment plant fee charged by the CVWD. Additionally, the city
will require the septic tank be pumped.
Regarding the interest rate, Mr. Stradling advised that is
established at the time the bonds are sold.
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Paul Quill, Avenida Rubjo, advised that he had property in Phase J
and wondered why his costs were so much higher in Phase V.
Mr. Kicak explained the process and what happened with Indian
Springs last year, which was the reason for the estimates being
higher than usual. However, staff fully expects the actual
construction costs to be lower than the estimates.
Joan Coodie, Roadrunner, stated that she was in favor of the
project, but felt that the cost of the electrical was too high.
She also felt that the property owners should be given the correct
cost figures.
Kathy Laubsch, Horseshoe, advised that her tax base is going to
increase significantly $1,500) per year based on these costs.
Mr. Kicak again explained that the actual costs will be based upon
the actual bids received. Mr. Stradling also noted that there will
be a 12% discount to anyone paying in cash.
Cristal Spidell, 51-860 Vallejo, questioned when the bids and
specifications were put to bid and asked if the Redevelopment
Agency will have the funds available to do the work.
Mr. Kicak advised that the bids were due on June 24th. However,
about one week prior to the bid date, staff realized that the
remainder of the information necessary for plan holders to bid
would not be available. Therefore, the bid date was postponed
indefinitely.
Mr. Genovese advised that in Project Area 2 north of Ave. 50), the
City would have to advance funds to perform that work. In Project
Area No. 1, the funds will be available.
Wally Reynolds, suggested that the City go to each house and make
sure that each property owner has the correct assessment.
Joe Daniel, stated that he was shocked by this development. He was
promised a year ago that the street work would begin in his area
July 1992. Now, he learns that the City is proposing to wait until
January 1993.
Audrey Ostrowsky, questioned the status of the work if the city has
to return the $10 million Wymer investments).
Mayor Pro Tem Sniff advised that this project will not be affected.
Mayor Pro Tem Sniff advised that all property owners will be
renoticed for the meeting in January.
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S City Council Minutes 5 June 29, 1992
MOTION It was moved by Council Members ohnenberger/Rushworth
that the public hearing on Assessment District 92-1 be continued to
January 11, 1993 at 7:00 P.M. Motion carried unanimously. MINUTE
ORDER NO. 92-141.
Council adjourned to Closed Session pursuant to Government Code
Section 54956.7 to discuss labor negotiations.
Council reconvened with no action being taken.
There being no further business, the meeting was adjourned.
Re?ectfu?l? submitted,
R??CityCl e rk
City of La Quinta, California
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