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1989 06 22 CC Minutes LA QUINTA CITY COUNCIL ADJOURNED MEETING JUNE 22, 1989 MINUTES Special meeting of the La Quinta City Council was called to order at 7:30 M. Mayor Pena presiding. PRESENT PRESENT: Council Members Bohnenberger Bosworth, Rushworth, Sniff, Mayor Pena ABSENT: None Mayor Pena advised that the Citys recycling program is starting on July 1st and brochures are in the mail explaining the program. 1. PUBLIC HEARING OF PROTESTS TO FORMATION OF ASSESSMENT DISTRICT NO. 89-2 FOR NATURAL GAS AND SANITARY SEWER INSTALLATION. Mayor Pena advised that this is the time and date fixed for the 1913 Act Assessment hearing of protests, objections or appeals in respect t6 the assessment and work under and pursuant to Resolution of Intention No. 89-56. Mrs. Juhola, City Clerk, presented the Council with affidavits of compliance regarding publication, posting and mailing. FRITZ STRADLING, Bond Counsel, with the firm of Stradling, Yocca, Carison and Rauth, advised that this is a combined hearing under the Special Investigation Tax of 1931 and the Municipal Improvement Act of 1913. He then reviewed the procedures that will be used to conduct this hearing. Once the City Council confirms the assessment and forms the Assessment District, the people will then have 30 days to pay their assessment. If after 30 days, it is not paid, bonds will be issued and a lien will be placed on the property, thereby giving the property owner a period of years in which to pay the assessment. Mr. Juhola advised that the total written protests received is 146 against the sewer installation and 229 against the natural gas installation. JOE KICAK, Assessment Engineer with the firm of Kicak and Associates advised that the boundaries included in the proposed district is that area south of Calle Madrid and north of Calle Colima. The work to be performed is as follows: BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 2 June 22, 1989 a. Installation of a storm drain system; and b. Upgrade of water system by installing and and/or replacing substandard existing water system; and c. Reconstruction of streets, including curbs and gutters and driveway approaches as may be required. d. Installation of a natural gas system; and e. Installation of a sanitary sewer system. Mr. Kicak advised that the Coachella valley Water District will be paying the cost of the water system improvements and the City's Redevelopment Agency will be paying for the street improvements. The Assessment District will consist of the Sanitary Sewer System and Natural Gas System. He advised that four bids were received for the work ranging from a low of $5,284,889.90 to a high of $7,744,521.54, with the Engineer's Estimate being $6,995,448.10. He noted that the preliminary estimate included capitalized interest for one year. If the Council confirms the assessments this evening, capitalized interest at 8% would not need to be added. Based upon the bids received, an individual's assessment for a 50' lot will be $1,270.89 for sewer, as compared to Assessment District No. 88-1 which was $1,287.19; and $772.13 for gas, as compared to $761 in Assessment District No. 88-1. The total assessable improvements amount to $2,405,444.59. Mr. Kicak noted that based on the City Clerk's report, the sewer protests represent 13.6% and the protests against natural gas is 11.4% ROGER LITTELL, representing Southern California Gas company recommended that the City Council should not vote for installation of gas lines because they feel that at this time, with the area being 50% built out, it wouldn't be cost effective. MOTION It was moved by Council Member Bohnenberger, seconded by Council Member Sniff that installation of a natural gas system be eliminated from consideration this evening. Motion carried unanimously. MINUTE ORDER NO. 89-70. JENNIFER TWOGOOD, Financial Consultant, with the firm of Fieldman, Rolapp, advised that on behalf of the City of La Quinta, Fieldman Rolapp conducted a bond sale on June 15th for the sewer portion of the Assessment District. Four bond bids were received ranging from 6.88% to 7.22%. The low bid was submitted by Wuiff, Hansen & Co. at 6.88% and a 2% discount. In response to Council Member Bohnenberger, Ms. Twogood believed that the previous issue was based on a 7.02% interest with a 3% discount. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 3 June 22, 1989 The Mayor declared the public hearing OPEN. ANN YOUNG, President of La Quinta Cove Association, P.O. Box 1384, La Quinta, stated that she was not opposed to sewers, however, she did not feel that this is the right time that it should wait until the City can absorb the cost. She did not believe that the City has attempted a study for alternative funding sources. Additionally, no pollution studies have been done as yet. She also spoke to the subsidy program advising that she had been informed that acceptance of a subsidy does not place a lien on the property, when it actually does. She felt that if the City waits a couple of years, there would be sufficient funds to cover the entire cost of the installation. MRS. NISH, 53-781 Carranza, agreed with Mrs. Young. LARRY ALLEN, P.O. Box 412, La Quinta, advised that if a property owner has a new tank, or a functioning tank, he will not be required to abandon it and hook up to the system. He felt that since the City has received such favorable bids that they should proceed with the sewer work, instead of waiting and cutting up new streets. KEITH SELLERS, 53-81C Calle Mendoza, advised that he is opposed to the sewer system. He has a new tank and does not plan to connect to the system. He asked if he sells his property, would the new owner be required to hook up and Mr. Kiedrowski advised that a property owner will only be required to hook up if their existing system fails and becomes a health hazard. Mr. Sellers asked for the Council to make a commitment to that effect. Council Member Sniff advised that this Council cannot bind future Councils, but Mayor Pena noted that this Council could send a message to future Councils. MOTION It was moved by Council Member Sniff, seconded by Council Member Bosworth that property owners will not be required to hook up to the sewer system unless their present septic system fails and becomes a health hazard. Motion carried unanimously. MINUTE ORDER NO. 89-71. DEBORAH GRAVES, 54-090 Herrera, stated that it seems like a large cost, but to replace a tank would cost about the same and a tank doesn't last that long with a family of four. She felt that now is the time to make the Installation. KEN HALL, 53-090 Ramirez, asked that consideration of a natural gas system not be included in Phase III. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 3 June 22, 1989 The Mayor declared the public hearing OPEN. ANN YOUNG, President of La Quinta Cove Association, P?O. Box 1384, La Quinta, stated that she was not opposed to sewers, however, she did not feel that this is the right time that it should wait until the City can absorb the cost. She did not believe that the City has attempted a study for alternative funding sources. Additionally, no pollution studies have been done as yet. She also spoke to the subsidy program advising that she had been informed that acceptance of a subsidy does not place a lien on the property, when it actually does. She felt that if the City waits a couple of years, there would be sufficient funds to cover the entire cost of the installation. MRS. NISH, 53-781 Carranza, agreed with Mrs. Young. LARRY ALLEN, P.O. Box 412, La Quinta, advised that if a property owner has a new tank, or a functioning tank, he will not be required to abandon it and hook up to the system. He felt that since the City has received such favorable bids that they should proceed with the sewer work, instead of waiting and cutting up new streets. KEITH SELLERS, 53-810 Calle Mendoza, advised that he is opposed to the sewer system. He has a new tank and does not plan to connect to the system. He asked if he sells his property, would the new owner be required to hook up and Mr. Kiedrowski advised that a property owner will only be required to hook up if their existing system fails and becomes a health hazard. Mr. Sellers asked for the Council to make a commitment to that effect. Council Member Sniff advised that this Council cannot bind future Councils, but Mayor Pena noted that this Council could send a message to future Councils. MOTION It was moved by Council Member Sniff, seconded by Council Member Bosworth that property owners will not be required to hook up to the sewer system unless their present septic system fails and becomes a health hazard. Motion carried unanimously. MINUTE ORDER NO. 89-71. DEBORAH GRAVES, 54-090 Herrera, stated that it seems like a large cost, but to replace a tank would cost about the same and a tank doesn't last that long with a family of four. She felt that now is the time to make the installation. KEN HALL, 53-090 Ramirez, asked that consideration of a natural gas system not be included in Phase III. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 4 June 22, 1989 STEVE ABRAHAM, 53-815 Carranza, stated that he was pleased about the streets and water improvements. Even though he wished to see sewer installation, he didn't like the way in which it's being handled. Many people cannot afford it, as there are many first-time home buyers in that area on limited incomes and the subsidy program doesn't help many people. Further, he felt that a study is needed to determine its need. He asked that the project be discontinued until a study is done. STEVE REIN, 52-952 Obregon, stated that studies are needed on pollution, density and absorption in the area, as well as a study on alternative financing. He felt that there are a lot of mistakes in the covenants of the subsidy agreement that there are conflicting statements. He understands it to say that if you sell your home, you must sell it to a low income family. Council Member Bohnenberger stated that you do not have to sell to a low income family it only requires that the balance of the amount owing would have to be paid through escrow. DENISE JACKSON, 52-805 Navarro expressed concern about not being able to bind future Councils. She asked if the money going towards streets could go towards sewers instead, as she could live a little longer without new streets. She suggested a vote on that issue. She then asked how deep the water table is and if there's a natural barrier between the septic tank and the water table and questioned the rate of seepage from a tank. Council Member Bohnenberger advised that the drinking water is 500-800 feet below the ground surface with the water table being anywhere between 40 to 100 feet below the surface; and the Water District has drilling logs for the area that do not show any natural barriers; he did not know the rate of seepage REISA FORBES, 53-300 Juarez, advised that she was speaking for the Robert Chandlers who are in Phase I commented on a problem with the billing they received and the Mayor asked her to see the City Engineer after the meeting. JOHN BUND, 53-560 Ramirez, was supportive of sewers as there has been a need for it a long time. He asked if there is a way to have the hook-up costs subsidized as well as the assessment payments and Mr. Kiedrowski advised that the City has sufficient funds for completion of the improvements in the Cove; if we were to fund sewers in Phase II, the rest of the improvements would have to wait. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 5 June 22, 1989 JOE KICAK, Assessment Engineer, commented on the benefit of the sewer system to the property owners stating that while many people may not need the sewers at this time, if their system was to fail, this system will be available for connection. There being no one else wishing the speak, it was moved by Council Member Bohnenberger, seconded by Council Member Sniff that the hearing be closed. Motion carried unanimously. Council Member Sniff advised that he has asked for a technical, independent study to determine the need for a sewer system in order to assist in making a decision. He felt that a study of the affect of septic tanks on the underground water supply is needed. However, he questioned whether it would be wise to not go forward and move in a consistent manner, which would result in checker-boarding the cove, with some areas with sewers and some without. Council Member Bosworth felt that the time is right to proceed commenting on how the improvements made thus far have improved the quality of living in Phase I. More people are buying and building on double lots and there is help for people who cannot afford it. Council Member Bohnenberger stated that he has chosen to dedicate his life to clean water and public health. Studies have shown that once you start getting a high concentration of homes in a similar hydrologic situation as we have here, it's not too much longer before you start developing problems with septic tanks. He was thankful for a City Council who's pro-active to a problem rather than reactive once a problem occurs. It's nice to know that future homes will be hooking up and not adding to the possible pollution and will be available to others as their systems fail. He then compared the costs of this project to other similar projects in other areas of the Valley which showed that the costs for this project to the property owner is very small in comparison. Council Member Rushworth concurred with Council Member Bohnenberger. Mayor Pena agreed with all of the comments made we have to proceed he would not like to see a checker board effect in the cove. He felt that sewers are going to enhance the quality of life in the cove. RESOLUTION NO. 89-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, MAKING DETERMINATIONS, CONFIRMING ASSESSMENTS AND PROCEEDINGS, AND ORDERING PROPOSED IMPROVEMENTS IN THE MATTER OF ASSESSMENT DISTRICT NO. 89-2. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 6 June 22, 1989 It was moved by Council Member Bohnenberger, seconded by Council Member Rushworth that Resolution No. 89-82 be adopted. Passed by the following vote: AYES: Council Members Bohnenberger, Bosworth, Rushworth, Sniff, Mayor Pena NOES: None ABSTAIN: None ABSENT: None RESOLUTION NO. 89-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DESIGNATING THE SUPERINTENDENT OF STREETS TO COLLECT AND RECEIVE ASSESSMENTS AND DIRECTING THE CITY TREASURER TO ESTABLISH A SPECIAL FUND FOR ASSESSMENT DISTRICT NO. 89-2. It was moved by Council Member Bohnenberger, seconded by Council Member Rushworth, that Resolution No. 89-83 be adopted. Passed by the following vote: AYES: Council Members Bohnenberger, Bosworth, Rushworth, Sniff, Mayor Pena NOES: None ABSTAIN: None ABSENT: None RESOLUTION NO. 89-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AWARDING THE IMPROVEMENT BONDS OF ASSESSMENT DISTRICT NO. 89-2 TO THE BEST BIDDERS. It was moved by Council Member Bohnenberger, seconded by Council Member Rushworth that Resolution No. 89-84 be adopted. Passed 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 bid for Assessment District No. 89-2 be awarded to the low bidder, Massey Sand and Rock in the amount of $5,284,899.90. Motion carried unanimously. MINUTE ORDER NO. 89-72. BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02 City Council Minutes 7 June 22, 1989 There being no further business, the meeting was adjourned upon motion by Council Member Bohnenberger, seconded by Council Member Rushworth and carried unanimously. Respectfully sub itted, SAUNDRA L JUH A, City Clerk City of La Quinta BIB] 02-16-96-U01 02:28:20PM-U01 CCMIN-U02 06-U02 22-U02 1989-U02