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1988 06 15 CC Minutes! LA QUINTA CITY COUNCIL MINUTES JUNE 15, 1988 Adjourned meeting of the La Quinta City Council was called to order at the hour of 7:30 P.M., Mayor Hoyle presiding, followed by the Pledge of Allegiance. PRESENT: Council Members Bohnenberger, Cox, Pena, Sniff, Mayor Hoyle ABSENT: None CONFIRMATION OF AGENDA PUBLIC COMMENT JOAN FOSTER, 78-234 Hacienda, La Quinta, addressed the Council on the matter of the funding request of the La Quinta Arts Foundation. She expressed appreciation to the City Council for their continued support and outlined the activities of the Foundation and those planned for next year noting that they are expanding their program by adding a lecture series. She urged favorable consideration of their request. LOIS AGNEW, P.O. Box 777, La Quinta, Executive Director of La Quinta Arts Foundation addressed the Council on the funding request of the Foundation expressing hope that the Council will look at the proposal carefully and realize that the figures are accurate as to what they project they need to exist and hoped that the City will support them. She advised that there is an economic benefit from the arts that is difficult to measure. The Foundation will be moving to La Fonda, thereby bringing people into the village area and the Arts Festival brings many dollars to the City. Arts are a link to the past and a comment on the present. COUNCIL COMMENT There were no Council comments. BUSINESS SESSION 1. DISCUSSION OF SCAG/RCTC/CVAG TRANSPORTATION STUDY ISSUES. Mr. Kiedrowski, City Manager, made some comments relative to CVAG's memorandum dated June 8th, particularly the dollar figures. He advised that staff has looked carefully at the figures and have found many problemS with them. The total streets and highways project amounts to $638 million. The revenue projections indicate that other sources", which are vague, and not well defined, make up over 1/2 of the BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 2 June 15, 1988 program. He questioned whether the items described in other sources" will truly net the revenue projected. If we are as under-funded as it appears, then we have to admit to the public that we re only going to generate half the money with this effort. He questioned whether the City should adopt a TUMF prior to a vote on the increased sales tax. Councilman Sniff made the following comments: * Program should be administered by a separate Joint Powers Authority * Concerned about the funding shortfall * Is increase in sales tax fair to low income people? * What about the large trucks and other large vehicles that contribute significantly to our problem? * Has thought been given to increasing the gas tax? * Would the assessment district be fair and reasonable? * Will this program get us to the year 2010? * What about credits to developers how can it be administered fairly? * Program is somewhat vague using speculative figures with major revenue shortfalls * Perhaps is open to legal questions * Can the statistical data be relied upon? * Perhaps a fleeting thought should be given to setting some type of limitation eventually upon this area of growth. It's a finite area with finite resources. Council Member Pena made the following comments: * Agreed with many of Councilman Sniff's comments * Document is far too complex, ambiguous and vague * La Quinta has taken some bold steps to do some good planning by widening rights of way recognizing La Quinta was equipped to do that because of all our vacant land) * Saw a problem with older cities where 20 years ago that foresight was not exercised so some of this money will go to pay for those mistakes * Perhaps some of the solution to this is mass transit * Being a life-long resident of the valley, he too, is concerned at what point do we say enough is enough. * Not prepared to take action on the document not comfortable with it; too many questions; legal concerns and could amount to double taxation * The fee for business expansion or relocation is prohibitive Council Member Cox made the following comments: * Shared a lot of the concerns expressed * Believed that the 112 cent increase in sales tax is a good idea and should go to a vote of the people * Had a problem with tieing the TUMF to the sales tax BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 3 June 15, 1988 * Also had a problem with TUMF not being done county-wide, but only in Coachella Valley * Believed that we're going to be heavily subsidizing other areas can't have an isolationist attitude, but isn't sure that the numbers presented work * Realized that four years have been spent on this project, but have seen projects that took 10 years to formalize * Concerned about adopting the ordinance before the sales tax is voted upon * Concerned about AB 1400 there still has not been a legal opinion rendered * Need to see some exemptions written in into the program Council Member Bohnenberger made the following comments; * Conceptually, he believed that the current residents should bear some of the weight of doing some of this and conceptually he felt that the new residents should also bear some of the weight in addition to tourists and new businesses * Overall, questioned if it is fair, particularly to La Quinta. The lower Coachella Valley cities are the ones who are going to be developing in the coming years the upper Valley cities are pretty well developed out most of the development fees are going to come from our area * By the same token, the TUMF is going to discourage development * There will be an impact on small business, which mean that local residents will have to continue to travel outside the City to buy their daily goods which means that sales taxes will be taken out of the City * Questioned whether sales tax increase is fair an increase in the gas tax would put the burden on those using the streets Mayor Royle made the following comments: * The committee looked very hard at an increase in the gas tax, but there was a valid reason for not going in that direction * He favored the TUMF as the new developments and new residents should be expected to help pay these costs, particularly if we're going to tap our current residents with an increase in the sales tax * The TUMF would be valley-wide so it would be equal * He believed that the County should be the first to adopt the TUMF because if the cities adopt it and the County drags their feet, it could encourage new development only in unincorporated areas * suggested that the ordinance could be passed with the understanding that it would not take effect unless the increase in the sales tax passes BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 4 June 15, 1988 FURTHER DISCUSSION Council Member Cox recalled that County Counsel was going to render a decision on the legality of the ballot measure which would be tied to the developers fee and if any City does not pass the TUMF, they would not get the 1/2 cent sales tax. Discussion ensued regarding the motion made at the last meeting as stated in CVAGs memorandum dated June 8th Council concurred that it was not stated as they recalled it. They believed that the motion was to approve in concept to take back to the City Councils for further discussion. Regarding public hearings, Mayor Hoyle advised that there were public hearings on the sales tax issue, but not on the TUMF. Council Member Cox noted that there was also a mailed public opinion poll. Regarding the five points in the 6/8/88 memorandum, Council made the following comments: Item No. 1 No Comment Item No. 2 No Comment Item No. 3 Should be administered by a separate joint powers authority Item No. 4 Should not adopt until after the Vote on the increase in sales tax Item No. 5 No Recommendation Nothing of substance to base a recommendation upon Council concurred that Mayor Hoyle would represent the Councils concerns at the General Assembly Meeting on June 27th. 2. REVIEW AND DISCUSSION OF FISCAL YEAR 1988/89 BUDGET. Mr. Kiedrowski, City Manager, noted that there is nothing included in the budget to cover the requests of the Chamber of Commerce and the Arts Foundation. He also noted that Desert Resort Communities Convention and Visitors Bureau made a presentation to the Mayor and Mayor Pro Tern and it will be up the Council to determine whether or not to increase the amount of $15,000 currently in the budget. Mr. Harvey, Finance Director advised that staff anticipates adopting the budget on June 21st. BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 5 June 15, 1988 Council Member Bohnenberger asked if there are funds budgeted for Economic Development and Mr. Harvey advised not. Last year it amounted to $45,000. Mr. Moran, president of the Chamber of Commerce advised that he would like to speak at Monday's study session and the Tuesday night regular meeting. Mayor Hoyle then presented his list of concerns to which Mr. Harvey made the following comments: * The increase in transient occupancy tax due to the increase in the number of units being added to the La Quinta Hotel was taken into account for six months of the fiscal year. * Since the City Attorney is a contractual service, it has been placed in the City Council's cost account. * The amount budgeted for lot cleaning also includes funds for towing of vehicles * The City Clerk reviewed the items that make up the increase in the Administrative Services budget * He recommended that the $15,000 budgeted for Economic Development be increased to $30,000 noting that a commitment was made at the last meeting that tourism is important to this community * He suggested that out of state travel, i.e. Boston be reconsidered Discussion ensued regarding the tourism budget with Council Member Pena reporting on a recent meeting between himself, the Mayor, the Acting Executive Director of DRCCVB and Richard Oliphant. They have layed out a bare bones" approach to tourism for the next year and will be in a reorganization stature for awhile. The recommended a budget allocation of $42,000. Mayor Hoyle advised that they have about a $150,000 shortfall which they're asking all the members to pick up with the promise that with the new administration, it won't re-occur. Mr. Kiedrowski advised that they are asking for 6% of each city's Transient occupancy Tax. Council Member Cox had no problem with budgeting $35,000, but had a problem with the DRCCVB and felt that the City's contribution would be towards covered debt". Council Member Sniff suggested a third alternative which would be to do our own promotion or work through the Chamber. BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 6 June 15, 1988 Mr. Moran, president of the Chamber stated that the Chamber does not believe that its the right place to have visitor and convention money coming to. He felt that a more professional organization should be handling it. MOTION It was moved by Council Member Sniff, seconded by Council Member Pena that $35,000 be allocated for tourist promotion". Council Member Cox felt that the same amount budgeted last year, $47,500, should be budgeted again even though all it may not go towards a convention bureau. Council Member Pena concurred. Motion carried with Council Member Pena voting NO. MINUTE ORDER NO. 88-82A. In answer to further questions by Mayor Hoyle, Mr. Harvey advised that the contractual services" in the Building Division is the contract Building Inspector for the hotel expansion. Mayor Hoyle then referred to the $300,000 in the contingency account and believed that it was too large amount and should be more specific. Council Member Bohnenberger concurred that it was too high and felt that it should be decreased to $200,000. MOTION It was moved by Mayor Hoyle, seconded by Council Member Bohnenberger that the contingency fund be reduced to $200,000. Motion failed to carry with Council Members Cox, Pena and Sniff voting NO. Council Member Bohnenberger believed that a mobile equipment fund should be established for next year. He also suggested that membership in the National League of Cities be dropped. MOTION It was moved by Council Member Bohnenberger, seconded by Mayor Hoyle that the City drop their membership in the National League of Cities. Motion carried with Council Members Cox and Pena voting NO. MINUTE ORDER NO. 88-83A. Council Member Bohnenberger expressed concern over the amount of money being spent on the newsletter and suggested that it be sent bi-monthly and expressed concern over the expense of a calendar. Following discussion, Council concurred on continuing the newsletter on a monthly basis. BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 7 June 15, 1988 MOTION It was moved by Council Member Bohnenberger, seconded by Council Member Sniff that the calendar be deleted. Motion carried unanimously. MINUTE ORDER NO. 88-84. Mr. Hirdler then explained the $7,500 budgeted for the law enforcement computer system which represents the City's share for this program. In response to Council Member Pena, Mr. Harvey explained the City Hall design and site preparation allocation. Council Member Bohnenberger asked if staff believes that the revenue from Redevelopment Agency is going to be adequate and Mr. Harvey believed that it is. Mr. Kiedrowski added that if we find, half way through the year that it isnt we can amend it. He will take another look at it prior to the final draft. The Redevelopment Agency budget will be presented to the Council on July 5th. Regarding Capital Projects, Council Member Sniff believed that they should be projected over a period of years. Discussion of Washington Street Improvements ensued with Council and staff concurring that it is unlikely that $500,000 will be expended this fiscal year. MOTION It was moved by Council Member Pena, seconded by Mayor Hoyle that the Washington Street Improvement project be reduced to $350,000. Council Member Sniff and Council Member B?hnenberger expressed their concern about the deficit last year and again this year and about a long term deficit trend. MOTION AMENDMENT Council Member Sniff uggested that the motion be amended to $300,000, amendment was accepted by Council Member Pena and Mayor Hoyle. Council Member Bohnenberger stated that he would support the amendment only if we pursue the widening with commitment from staff that planning, land acquisition and design is going to take longer than the coming fiscal year is going to allow to accomplish, because the residents along that area have been made assurances. Mr. Kiedrowski stated that if by some chance all that work is completed during the year, then the Council can increase the budget to continue with the project. Motion carried unanimously. MINUTE ORDER NO. 88-85. BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 !City Council Minutes 8 June 15, 1988 Regarding Jefferson Street, Mr. Reynolds advised that the amount budgeted is for improvements from Highway 111 to Westward Ho Drive. Indio's share is about $30,000. The project provides for a drivable street with a 12' raised median, landscaped with irrigation. The street will not be widened. Mayor Hoyle asked if there are any street improvements planned for Yucatan Peninsula" and Mr. Kiedrowski advised not. Council Member Cox noted that Mr. Robinson wanted that area to be gated and the streets to be private. 3. CONSIDERATION OF ADOPTION OF AMENDMENT TO SECTIONS 6.04.130 AND 6.04.135 OF THE LA QUINTA MUNICIPAL CODE. Mrs. Juhola, Administrative Services Director, advised that the proposed ordinance simply removes the garbage fees from the City Code and allows them to be established by resolution. The public hearing on the assessment will be held at the July 5th meeting at which time, a resolution will be adopted. MOTION It was moved by Council Member Sniff, seconded by Council Member Cox that Ordinance No. 124 be taken up. Motion carried unanimously. ORDINANCE NO. 124 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, AMENDING TITLE 6, CHAPTER 6.04, SECTION 6.04.130 AND 6.04.135 OF THE LA QUINTA MUNICIPAL CODE. It was moved by Council Member Sniff, seconded by Council Member Cox that full reading of Ordinance No. 124 be waived and same passed on first reading. Passed by the following vote: AYES: Council Members Bohnenberger, Cox, Pena, Sniff, Mayor Hoyle NOES: None ABSTAIN: None ABSENT: None 4. DISCUSSION OF TRANSIENT OCCUPANCY TAX BILL PENDING IN STATE LEGISLATURE AND POSSIBLE BALLOT MEASURE FOR INCREASE IN TRANSIENT OCCUPANCY TAX. Council Member Pena advised that the Bill that was in the legislature which would require any additional transient occupancy tax revenues raised to be allocated towards tourism is a dead issue for this legislative session, but will more than likely be brought back up next session. BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02 ! City Council Minutes 9 June 15, 1988 Council Member Pena suggested that the City go to the voters for an increase in the Transient Occupancy Tax from 8% to 9%. Council Member Sniff expressed concern that this increase could discourage hotel development MOTION It was moved by Council Member Pena, seconded by Council Member Cox that the City Clerk be directed to proceed with the placement of a measure on the November 1988 ballot to increase the Transient Occupancy Tax from 8% to 9%. Motion carried with Council Member Sniff voting NO. MINUTE ORDER NO. 88-86. There being no further business, the meeting was adjourned at 11:15 P.M. to Closed Session to discuss personnel matters. Council reconvened with no action taken. sub &UNDR?A? WUH??& Administrative Services Director BIB] 02-23-96-U01 04:10:10PM-U01 CCMIN-U02 06-U02 15-U02 1988-U02