1989 02 14 CC Minutesj LA QUINTA CITY COUNCIL
MINUTES
FEBRUARY 14, 1989
Special meeting of the La Quinta City Council was called to order at
the hour of 7:30 P.M., in the La Quinta Community Center, 77-865
Avenida Montezuma, Mayor Pena presiding, followed by the Pledge of
Allegiance.
PRESENT: Council Members Bohnenberger, Bosworth, Rushworth, Sniff,
Mayor Pena
ABSENT: None
PUBLIC HEARINGS
1. PUBLIC HEARING OF PROTESTS TO FORMATION OF ASSESSMENT DISTRICT
NO. 88-1 FOR NATURAL GAS AND SANITARY SEWER.
Mrs. Juhola, City Clerk, advised that the City Council has
received copies of the affidavits of publication, posting and
mailing in accordance with the Municipal Improvement Act of 1913.
Mr. Stradling, Bond Counsel, advised that this proceeding is
taken pursuant to the Majority Protest Act 1931 and the 1913
Assessment District Act. He reviewed the procedures which will
be followed this evening advising that reports will be made by
both the Assessment Engineer and Financial Advisor. The Mayor
will call for protests and everyone will be given three minutes
in which to speak. He noted that if this proceeding is
consummated and the assessment is confirmed, the people will have
a 30 day cash period and if they do not pay cash, then the unpaid
assessment will go to a bond. the people will then have 15 years
to pay the principal and interest. There will be a discount? for
a cash payment.
Mayor Pena added that those wishing to protest will be heard
first.
Mr. Kicak, Assessment Engineer, advised that there are 957
parcels comprising 127.47 acres. There have been 351 written
protests to the natural gas assessment which represents 41.52
acres or 32.57% of all the properties within the District. There
have been 311 written protests to the sewer assessment
representing 39.6 acres or 31.07% of all the properties within
the District.
Mr. Kicak then reviewed the boundaries as being bounded by Calle
Tecate on the south; Calle Madrid on the north; the length of
Bermudas from Calle Cadiz on the north and Calle Tecate on the
south. He then reviewed the proposed improvements.
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jCity Council Minutes Page 2 February 14, 1989
There were a total of five construction bids received for the
work which ranged from $5,488,723.50 to $7,221,228.58. His
original estimate was $5,558,543.50. It was on the estimate that
the preliminary notice was based. As a result in the reduction
of costs from the Engineer's estimate, there will be a reduction
in cost of both the sewer and gas. Sanitary sewer will be
decreased from $1,503 for a 50' lot down to $1,287. Natural gas
will be decreased from $870 to $761. Total assessment will then
be decreased from $2,321 to $2,048.
Mr. Fieldman, Financial Consultant, advised that the financing
was broken into two parts one part for the sewer system and one
for the gas line in order to conform with the Tax Reform Act of
1986 which says, in effect, that if the ownership of the facility
was in private hands then the bonds would be sold on a taxable
interest and the bonds would be taxable. To finance a public
improvement, i.e., the sewers, then the interest on the bonds
would be tax exempt. On that basis, it was decided that we would
offer the sewer bonds on a sealed competitive bid and to
negotiate that portion that pertains to the gas improvements.
The gas bonds were negotiated at a discount of 2 1/2 % with a net
effect of interest rate of 10.39%. We received seven bids for
the sewer portion of the financing. The discount ranged from
2.95% to 3%. The net effect of the best bid was an effective
rate of 7.08%. The combined total of the two bids amounts to a
total assessment each year of $244.00 to completely amortize the
debt over a 15 year period.
At this time, the Mayor called for PROTESTS.
GARY SCHAEFFER, 54-055 Avenida Martinez, questioned where the
waste water will be pumped and Mr. Kicak advised that it will be
pumped to the Cook Street Sewerage Treatment Plant and understood
that at least two golf courses are receiving the effluent. Mr.
Schaeffer also questioned why anyone would want a gas line since
everyone has all-electric homes. Mr. Reynolds advised that the
City is not pushing for installation of a natural gas line or
sewer line, this is an opportunity for the people to have them if
they wish, if they don't wish, both can be protested out. Mr.
Schaeffer also questioned the cost per home to tie into the line
and Mr. Reynolds advised that the $1,575 Capacity Charge must
first be paid to CVWD; the cost to run the line to the home from
the street will run $10 to $15 per foot. He added that there is
also a cost to abandon a septic tank. Mr. Schaeffer asked to go
on record in opposition.
LEE ECKES, 54-330 Avenida Diaz, questioned why the residents
should pay to install a gas line for the gas company. He felt
that there was inadequate notice.
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jCity Council Minutes Page 3 February 14, 1989
JACQUELINE MONTGOMERY, 77-125 Madrid, questioned why a study
wasn't done to determine the need for sewers and questioned when
Phase II will begin and Mr. Reynolds advised that he anticipates
a public hearing in the middle of June. It is anticipated that
if it proceeds, it will be placed on the December tax rolls. He
added that how rapidly all phases proceed will depend on how
monies come into the Redevelopment Agency.
E. L. BUSH, 53-725 Avenida DiaZ, asked why the City is proposing
sewers and gas. Mayor Pena advised that the City is planning to
install new streets, curbs, and gutters and rather than tearing
up these improvements in the future, it was decided to let the
people decide if they wish to see these other improvements go in
at the same time. Mr. Bush then asked how the septic tanks are
abandoned and Mr. Reynolds advised that the Health Department
requires that they be filled with sand after they are pumped.
Mr. Kiedrowski added that no one is going to be required to
abandon their septic tanks and hook up to the sewer system as
long as their tanks are functioning efficiently. New
construction will be required to hook up. Existing septic tanks
will function longer by placing all future development on a sewer
system, commenting on the density of the cove upon build-out.
LINDA COLLINS, 54-585 Avenida Ramirez, stated that she cannot
afford these improvements and does not need gas and sewer.
In response to Council Member Bohnenberger, Mr. Kiedrowski
reviewed the subsidy program being established to assist low to
moderate income households to pay those assessments.
AUDREY OSTROWSKY, P.O. BOX 351, La Quinta, felt that the people
really aren't against the installation of sewer and gas it's
the payment and believed that the City funds these expenses for
business, but not residents. She also believed that many people
did not receive their notices.
OLIVE STEDMAN, 43-300 Elkhorn, Palm Desert, property owner within
Phase I advised that she has been trying to sell her lots but has
been unable to do so because of this controversy.
GEORGE SHELTON, 54-775 Avenida Alvarado, felt that the whole
character of the City is changing and people will no longer be
able to afford to live here. He believed that the protest is
significant and the City Council should not ignore it. He asked
that this decision be delayed.
MURIEL PARKER, 54-885 Avenida Alvarado, advised that he did not
receive notification of this meeting.
Mr. Kicak advised that notices were sent to the address in which
property tax notices are sent. Of 957 notices, about 34 were
returned undeliverable, but an attempt was made to notify those
persons.
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jCity Council Minutes Page 4 February 14, 1989
DAN CORY, 77-671 Calle Potrero, advised that he owns six
properties here. He was against the people having to bear the
cost of installing a gas line. He also noted that people who
have FHA and VA loans, probably did not receive their notices as
they were sent to the lender. He expressed opposition to the gas
line.
LEE ALBERT, 54-825 Avenida Rubio, advised that he moved here as
result of discussions with the City's previous Economic
Development Director. His septic tank is only six months old.
He was in favor of sewer installation, but not gas for reasons
already stated by others. However, after seeing the complete
figures as someone placed on his door) he is angry as he's never
seen these figures before. He felt that the City has not done
their homework as there seems to be many unanswered questions.
He was opposed to installation of both sewer and gas.
JIM PARNELL, 54-021 Cortez, felt that a study should be done to
establish the need. He asked if the majority of the people
protest, does the City Council have the power to over-ride the
protest.
Mr. Stradling advised that the Council cannot proceed if there is
50+% protest unless they vote to do so on a 4/5 affirmative vote.
The Mayor then called for those speaking in SUPPORT.
JOHN HANCOCK, owner of Lots 17 and 18 in Block 206, advised that
in other cities, special consideration has been given to already
improved lots, i.e., that they are charged perhaps one half of
the normal assessment. He felt that there should be some relief
given to people who have existing homes who do not need these
services. The reason is that eventually they will need the
services and will then be coming in to connect. Regarding the
gas line, he understood that the Gas Company refunds to the
public after the lines are in use and asked how this works.
Mr. Kiedrowski advised that the Gas Company will rebate that
directly to the homeowner who installs gas appliances.
PATRICE d'ENTREMONT, 54-565 Avenida Rubio, advised that she did
not receive notification, but has only owned her home since
December. She applauded the City for their foresight commenting
that it's easy to become a blighted area. She was concerned
about the costs and hoped that the City could look for other
monies that could assists people in paying for these assessments.
Mr. Kicak and Mr. Reynolds advised that to their knowledge there
are no other funds available for the payment of these assessments.
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jCity Council Minutes Page 5 February 14, 1989
GREG BUTLER, 54-120 Avenida Madero, questioned the total cost,
which Mayor Pena explained. He advised that he has been a
resident of the City for two years in Phase 11. There are lots
of children playing in the streets; the streets have no striping;
there are cars parked in yards and on streets; and there are
water problems. He felt that parks are taking care of the
children and that curbs and gutter will help eliminate the
parking of cars in yards. He was in favor of an upgrade in water
facilities. In Cathedral City an Assessment District was
established in which his assessment for only sewer was $5,000.
Therefore, he felt that the costs proposed here are not out of
line.
YVONE DAVIS, 77-841 Calle Sonora, stated that these improvements
will have to be made at some point in the future as the septic
tanks will pollute the ground water eventually. In the long
term, this is the best thing for the community.
BRUCE FRANKLIN, 55-900 Riviera, La Quinta, advised that he owns
property in Phase II and felt that the City Council is here to
hear the people and should be commended. The streets, curbs,
gutter and water facilities will be installed at no cost to the
property owner. Consideration has to be given to sewer and gas
at this point if planning is being done appropriately. He
preferred to pay $2,000 now than more later on.
LARRY ALLEN, 53-781 Herrera, agreed that the Council should be
commended on their foresight to be able to do all these
improvements at no cost to the homeowners. Sewers will have to
go in at some point in time when the Cove is built out. He did
object to installation of gas lines as he felt that the Gas
Company should be installing the lines at their cost.
ELVA VELASQUEZ, 51-343 Avenida Vallejo, advised that she did not
receive a notice of this hearing and Mayor Pena advised that the
reason is because she is not located in the first phase.
WALLY REYNOLDS, 79-860 Fiesta, asked that this same offer be made
to the Indian Springs residents.
STEVE RIEN, 54-952 Avenida Obregon, advised that his landlord did
not know about this hearing. He favored the installation of
sanitary sewer, but not gas as all of the homes are already
all-electric. He felt that more information is needed. He
questioned what the Capacity Charge of CVWD pays for and Mr.
Reynolds advised that it is for maintenance and operation of the
sewerage treatment plant and future expansion; and it covers the
trunk system and maintenance and operation of the pump station.
ANN YOUNG, P.O. Box 1384, President of the La Quinta Cove
Association, could not understand the rush to push this project
through. She felt that a needs study should be done. Why can't
the project wait a few years when the City could pay the entire
cost through the Redevelopment Agency? The majority of the
members of the La Quinta Cove Association asks the City Council
to reconsider this proposal.
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jCity Council Minutes Page 6 February 14, 1989
DENISE JACKSON, 52-805 Navarro, stated that she spent the
week-end going door to door and out of 55 homes, she received a
strong 38 opponents and 2 supporters. She asked how the street
improvements are being paid and Mr. Kiedrowski advised that the
Redevelopment Agency will be paying those costs through tax
increment financing and proceeded to explain tax increments.
Regarding her question as to who is paying for the water system
upgrade, Mr. Reynolds advised that CVWD has committed one million
dollars each year for ten years to upgrade the water system in La
Quinta.
Mrs. Jackson felt that this cost is going to hurt a lot of people.
STEVE ABRAHAM, 53-815 Avenida Carranza, advised that he assisted
the Cove Association in their survey and he found only six people
in Phase I who were in favor. Many people were not informed as
to the total cost to connect to the system. He felt that this
procedure should stop until the City finds a better way to fund
the improvements.
TOM HORTON, 52-450 Avenida Diaz, asked if the cost for Phase II
will be same as Phase I and Mr. Kicak advised that there is no
guarantee, noting that each phase will be put to bid, so the
construction cost could vary.
CHARLIE BIRD, 77-600 Monterey, felt that the sewer installation
should be paid for by the City and he did not believe that all
work will be done together, i.e, streets, water, sewer and gas.
Mr. Kicak advised that the assessment for sewerage was based on
frontage; a unit of benefit; and a lateral and for gas it was
based on frontage and unit of service. He believed that the
assessment as spread is equitable and uniform throughout the
district. The total project cost is 7.5 million dollars. Of
that amount, 4 million will be funded by the Redevelopment Agency
and 1.5 million will be funded by the Coachella valley Water
District. The property owners are paying 2 million of the total
cost.
Regarding the refunds from the Gas Company, that amount will be
based on the type of units being connected.
He presented a map of Phase I indicating the lots that have filed
protests. There was a total of 196 property owners who wrote in
support of sewer and 141 in favor of gas. Additionally, the
majority of responses received were from occupied parcels.
Mr. Kiedrowski noted that a number of people own two adjoining
lots and they could save a significant amount of money by merging
their lots.
Mr. Kicak advised that the normal assessment for both gas and
sewer for two 50 lots would be $4,096.88, whereas, if they were
merged, the total assessment would be $2,454.59.
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jCity Council Minutes Page 7 February 14, 1989
At this time, IT WAS MOVED by Council Member Bohnenberger,
seconded by Council Member Rushworth that the public hearing be
CLOSED. Motion carried unanimously. MINUTE ORDER NO. 89-19.
Mr. Kicak advised that as a result of the hearing, the final
protest figures are as follows: Gas Protests represents 42.02
acres or 32.96% and Sewer Protests represents 39.72 acres or
31.16%.
Council Member Sniff stated that he has given this matter a great
deal of thought, and that it's been a difficult decision. He
personally would have felt more secure if there had been a study
and report by a qualified technical expert on the current
condition of, and useful life of our septic tank and cesspool
system in the Cove and its possible relation and effect an the
our underground water supply. Regarding the gas line, he felt
that the cost is excessive and that the Gas Company can put in
and extend lines when demand warrants. When a survey was done
to determine the need for gas, the response was minimal. He
wanted to see this decision set-aside in order to have a study
before the Council, as he felt he needed more information in
order to make this decision.
Council Member Bosworth advised that she is on the Council to
represent the people and there has been more protests than she
thought there would be. Therefore, she would like to see the
study continued and not rush through it and perhaps have more
money available to the residents.
Council Member Rushworth felt that this project has been before
the people long enough to make a reasonable decision. He felt
that the engineers who studied this knew what they were doing.
The protest is far less than 50% and he felt the people who are
spending all this time protesting it would protest the spending
of money on a study. He felt that we would be burying our heads
in the sand if we don't do it now, when we have a chance to do it
for less money than in the future and to improve the whole
attitude of the Cove with this improvement. He saw no reason to
delay it.
Council Member Bohnenberger stated that this issue has been
discussed for over a year it is not new. A questionnaire was
sent out to the property owners over a year ago to see if there
was any interest in proceeding with several underground utilities
when the street improvements were done. The survey included gas,
sewer, telephone, and electrical and the positive results were on
sewer and gas. This matter has been addressed in two
newsletters, public mailings and public meetings and the total
costs were addressed. He advised that the City is not going to
require anyone to hook into the lines. He also pointed out that
the Redevelopment Agency is paying the costs of rebuilding the
streets and installing storm drains, curbs and gutters and the
Water District is paying to replace the water lines. In the past
five years, the CVWD has spent five million dollars in
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jCity Council Minutes page 8 February 14, 1989
improving that system and over the next seven to eight years,
they're going to put in another million dollars a year to upgrade
the entire system. They are also paying a part of the sewer
system because part of it is the trunk line. He pointed out
that 70% of the property owners are supporting the project. He
also pointed out that there is a subsidy program available for
those low to moderate income households. He concluded in saying
that property values will go up an equal amount of the assessment.
JIM PARNELL, 54-021 Avenida Cortez, stated that present money is
always worth more than future money.
Council Member Bohnenberger felt that the time is right and
wished to see the City proceed with this project immediately. To
hold it up to do more study will be counter-productive to what
we're trying to do in upgrading the Cove area.
In response to questions by Mayor pena, Mr. Kiedrowski advised
that renters did not get notification, however, they did receive
the City's newsletters. The process used is the legal process
the use of the last equalized property tax roll. Mr. Kicak added
that a total of 34 letters were returned undeliverable. Staff
has attempted to locate these individuals and some were
remailed. During the last few weeks he advised that his staff
maintained office hours in City Hall two days a week and during
that time, over 120 property owners came in to see them and 20%
of them were from out of town.
Mayor Pena did not believe that it would behoove us to enter into
another study he did not need a study to tell him that
eventually the ground water will become polluted. He also
pointed out that people are not going to be required to hook up
only the Health Department can require a hook-up based upon a
fact-finding that a health hazard exists. He asked if La Quinta
is the only City in Coachella valley that does not have sewer and
Mr. Reynolds believed that we are.
Mayor Pena commented that a pocket-book" issue is always
emotional and is always a difficult decision. It's one that
everyone has to work together on until the project is completed.
A lady in the audience asked why Council Member Bohnenberger is
being allowed to vote an this issue since he is employed by the
Coachella valley Water District and Council Member Bohnenberger
advised that this issue has been check out by legal counsel and
the Fair political practices Commission and it has been
determined that no conflict of interest exist. He is just an
employee and does not stand to gain financially. CVWD is a
non-profit organization with an elected Board of Directors by the
residents.
Council Member Sniff asked if all notices were mailed by
Certified Mail, Return Receipt Requested and Mr. Kicak advised
they were not they were mail by first-class mail.
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jCity Council Minutes page 9 February 14, 1989
Council Member Bohnenberger asked for an advisory vote" of the
City Council to determine where each Member stands in order to
formulate a motion. Council Member Rushworth stated that he
favored both gas and sewer and Council Member Bohnenberger stated
the same.
Mayor Pena stated that we have talked about cleaning up and
beautifying the Cove and felt that the City has gone beyond the
letter of the law in notifying property owners. He felt that we
need to go forward with this project. He questions the affect
on the bond rating if this project is delayed and Mr. Stradling
advised that the bids are good until the close of this hearing,
then they are automatically withdrawn and he added that the
construction bids would also be lost.
Mayor Pena responded to Council Member Bohnenberger advising that
he was opposed to the gas line.
Mr. Fieldman advised that the resolutions would be modified to
reflect the deletion of any reference to installation of gas
lines.
RESOLUTION NO. 89-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, MAKING
DETERMINATIONS, CONFIRMING ASSESSMENTS AND PROCEEDINGS? AND
ORDERING PROPOSED IMPROVEMENTS IN THE MATTER OF ASSESSMENT
DISTRICT NO. 88-1.
It was moved by Council Member Bohnenberger, seconded by Council
Member Rushworth that Resolution No. 89-19 be adopted with the
necessary modification to reflect the deletion of gas lines.
Motion carried by the following vote:
AYES: Council Members Bohnenberger, Rushworth, Mayor Pena
NOES: Council Member Sniff
ABSTAIN: Council Member Bosworth
ABSENT: None
Council Member Bosworth referred to her abstention and asked
everyone to write her and let her know ho? many people are in
favor and how many are opposed to this action.
Mr. Fieldman advised that the next resolution will be modified to
reflect a 13% discount if paid in cash.
RESOLUTION NO. 89-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
DESIGNATING THE SUPERINTENDENT OF STREETS TO COLLECT AND RECEIVE
ASSESSMENTS AND DIRECTING THE CITY TREASURER TO ESTABLISH A
SPECIAL FUND FOR ASSESSMENT DISTRICT NO. 88-1.
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jCity Council Minutes Page 10 February 14, 1989
It was moved by Council Member Bohnenberger, seconded by Council
Member Rushworth that Resolution No. 89-20 be adopted as modified
to reflect the cash discount. Motion carried by the following
vote:
AYES: Council Members Bohnenberger, Bosworth, Rushworth, Sniff,
Mayor Pena
NOES: None
ABSTAIN: None
ABSENT: None
Mr. Fieldman advised that the next resolution needs to be
modified to delete reference to the bid of Stone and Youngberg
which refers to the gas installation.
RESOLUTION NO. 89-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
AWARDING THE IMPROVEMENT BONDS, SERIES A OF ASSESSMENT DISTRICT
NO. 88-1 TO THE BEST BIDDERS.
It was moved by Council Member Bohnenberger, seconded by Council
Member Rushworth that Resolution No. 89-21 be adopted as modified
to delete reference to the bid of Stone and Youngberg. Motion
carried by the following vote:
AYES: Council Members Bohnenberger, Bosworth, Rushworth, Sniff,
Mayor Pena
NOES: None
ABSTAIN: None
ABSENT: None
MOTION It was moved by Council Member Bohnenberger, seconded by
Council Member Rushworth that the construction contract be
awarded to the lowest bidder, Matich Corp. in the amount of
$5,488,723.50. Motion carried unanimously. MINUTE ORDER NO.
89-20.
Council Member Bohnenberger advised that the action juSt taken was to
establish a sewer assessment district. The assessment for a 50 lot
is $1,287 or an annual cost of $150. Anyone who is needy and will
have trouble making those payments can call the City Manager or
Ass't. City Manager regarding the subsidy program.
There being no further business, the meeting was adjourned at 10:25
P M upon motion by Council Member Rushworth seconded by Council
Member Bosworth and carried unanimously.
Re$sectfull?s;ymitt;?
A, City Clerk
City of La Quinta, California
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