2020 CC Staff Rpt & Minutes - Codorniz TOT Mitigation Agrmt AmendCITY COUNCIL MINUTES Page 2 of 12 JULY 7, 2020
CONFIRMATION OF AGENDA
City Clerk Radeva said Greg Beaver, Applicant with Lundin Development
Company requested that Council continue Public Hearing Item No. 1 related
to the Pavilion Palms Shopping Center. Council concurred.
CLOSED SESSION
1. THREAT TO PUBLIC SERVICES OR FACILITIES, PURSUANT TO
SUBDIVISION (a) OF GOVERNMENT CODE SECTION 54957.
CONSULTATION WITH: ALEXANDER JOHNSTON, SENIOR
EMERGENCY MANAGEMENT COORDINATOR; WILLIAM H. IHRKE,
CITY ATTORNEY
2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED
LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION
PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF
GOVERNMENT CODE SECTION 54956.9
(NUMBER OF POTENTIAL CASES: 1)
COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING
AND MOVED INTO CLOSED SESSION AT 3:06 P.M.
MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE
CITY COUNCIL MEETING AT 4:03 P.M. WITH ALL MEMBERS PRESENT
REPORT ON ACTION(S) TAKEN IN CLOSED SESSION:
City Attorney Ihrke reported the following pursuant to Government Code
§54950 et seq. (Brown Act).
CLOSED SESSION ITEM NO. 1 – The City Council continued the
discussion of the status of state and local emergencies caused by the
threat of the spread of novel coronavirus disease 2019 (COVID-19)
including state and county orders that re-imposed limitations on certain
industries; and the potential for Round IV COVID-19 Small Business
Emergency Economic Relief Program, which Council will consider as
Business Session Item No. 2 on tonight’s Agenda.
CLOSED SESSION ITEM NO. 2 – At its closed session discussion at the
September 17, 2019 meeting, the City Council authorized the City
Manager, City Staff, and City Attorney to complete negotiations and, if
successful, enter into a proposed settlement agreement with the Codorniz
Maintenance Association to resolve unpaid mitigation fees owed to the
City pursuant to a condition of approval and Declaration of Covenants,
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CITY COUNCIL MINUTES Page 3 of 12 JULY 7, 2020
Conditions, Restrictions, and Reservation of Easements applicable to the
development; on November 21, 2019 the Maintenance Association signed
the proposed agreement.
The Substance of the settlement agreement is summarized as follows:
A lump-sum back payment totaling $149,588.97 for unpaid years
2012-2018 will be remitted to the City; and
Consumer Price Index (CPI) adjustments starting with 2018 would
be based on the Riverside-San Bernardino-Ontario CPI, which did
not exist at the time of the original condition of approval; and
The invoicing and payment process is clarified, such that the City
would calculate the fee and submit and invoice by March 1, and the
Maintenance Association would pay the fee by March 30 every year.
The settlement agreement required the Maintenance Association to
obtain member approval of a proposed First Amendment to Declaration
of Covenants, Conditions, Restrictions, and Reservation of Easements to
implement the settlement agreement’s terms; after the Maintenance
Association member voting period had been extended several times, the
Maintenance Association notified City staff that the members voted and
approved the amendment; and pursuant to the settlement agreement,
and by unanimous consent of the City Council, a resolution approving
modifications to Codorniz maintenance association fee and First
Amendment to Declaration of Covenants, Conditions, Restrictions, and
Reservation of Easements will be brought back before the City Council
at its next regular meeting for adoption.
PLEDGE OF ALLEGIANCE
City Attorney Ihrke led the audience in the Pledge of Allegiance.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
PUBLIC SPEAKER: Maria Puente, La Quinta – spoke in opposition of short-
term vacation rentals (STVR) being allowed in the City; said STVR are
disruptive to full-time residents; and expressed concerns about her safety,
and the effectiveness of the STVR compliance processes and responses to
complaints.
Council said the City formed a STVR Program Ad-Hoc Committee to review the
STVR program and make recommendations to Council on how it can be
improved; it is a priority to find a balance and provide quality of life for full-
time residents and to effectively manage STVR compliance; and requested
that Ms. Puente’s written comments be provided to the Committee.
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City of La Quinta
CITY COUNCIL MEETING: July 21, 2020
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE MODIFICATIONS TO
CODORNIZ MAINTENANCE ASSOCIATION FEE AND FIRST AMENDMENT TO
DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS, AND
RESERVATION OF EASEMENTS
RECOMMENDATION
Adopt a resolution to approve modifications to Codorniz maintenance
association fee and First Amendment to Declaration of Covenants, Conditions,
Restrictions, and Reservation of Easements; and authorize the City Manager
to execute the Amendment.
EXECUTIVE SUMMARY
•Staff reviewed outstanding development agreements with fiscal
mitigation fees in late 2016.
•Staff and representatives from the Codorniz HOA have discussed
modifications to the annual Codorniz maintenance association fee.
•Proposed changes are detailed in the resolution and were approved by
the Codorniz Homeowners Association (HOA) in late May 2020.
•Upon Council approval of the First Amendment, the proposed changes
would be implemented going forward, past due fees would be paid, and
2019 and 2020 fees would be recalculated and billed under the new
terms.
FISCAL IMPACT
Upon formal adoption of the Resolution and First Amendment, the HOA shall
remit $149,588.97 and the City shall recalculate fees due for 2019 and 2020
based on the new terms (estimated at $55,000). Funds would be deposited to
the General Fund in Account No. 101-0000-41410, Zoning Change Mitigation
Fee.
BACKGROUND/ANALYSIS
Finance Staff reviewed outstanding development agreements with fiscal
mitigation fees in late 2016. Mitigation fees include various estimates of
General Fund impacts regarding a residential use of land with a commercial
land use requiring rezoning. The fees are designed to replace ongoing revenue
that the City would have received had the land use designation not been
CONSENT CALENDAR ITEM NO. 3
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changed. After extensive research, it was discovered that some annual billings
for mitigation fees were overlooked due to organizational restructure and staff
turnover.
After confirming received payments, new invoices were sent to organizations
owing funds to the City; in the case of Codorniz, this billing went out in
February 2017. After receipt of the invoice, the City received communication
from the management company, requesting a meeting to discuss the fee.
Since this time, City Staff and representatives from the Codorniz HOA have
discussed modifications to the annual Codorniz maintenance association fee.
In summary the proposed changes are as follows:
•$89,195.90 payment for “back years” (from 2012 to 2016)
•Base year reset of $250 per residential unit as of 2015
•For 2015-2017, the CIP will be L.A. based index for increases
•Starting in 2018, the Inland Empire/Riverside County (I.E./Riv. Co.)
index will be used for adjustments
•Instead of a 3-year CPI adjustment calculation, the CPI shall be adjusted
annually according to the I.E./Riv. Co. CPI index
•By January 31st of each calendar year, the HOA shall notify the City of
the number of units sold in the prior calendar year and their sale date,
until such time that all units are sold. The sale date shall determine the
pro-rated annual fee.
•The City shall issue an invoice for the prior calendar year by March 1st
and payment by the HOA to be remitted by March 30th of each year
These terms were approved by the City Council on September 17, 2019.
Subsequently in November 2019, the HOA presented the proposed changes
to their homeowners for voter approval prior to presenting a resolution for
adoption by the City of La Quinta.
To obtain the necessary HOA votes, the voting period was extended four times
(January, February, March, April 2020). The City was notified on May 28, 2020
that the ballots were tabulated which approved the Resolution and First
Amendment.
If approved, proposed changes would be implemented going forward, past
due fees would be paid, and 2019 and 2020 fees would be recalculated and
billed under the new terms.
ALTERNATIVES
Council may elect to decline this request.
Prepared by: Karla Romero, Finance Director
Approved by: Jon McMillen, City Manager
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CITY COUNCIL MINUTES Page 5 of 10 JULY 21, 2020
Planner Fernandez with the American Planning Association Inland Empire
Chapter 2020 Comprehensive Plan-Small Jurisdiction award; and commended
Staff and the community for their collaboration, engagement, and efforts
throughout the development process of the Highway 111 Corridor Plan.
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – Continued
PUBLIC SPEAKER VIA TELEPHONIC ACCESSIBILITY: David Dinnel, La Quinta
– said 90% of guests fully comply and follow the guidelines provided by STVR
owners and operators, and 10% try to deviate and require interference and
monitoring by the owners and operators; expressed concerns about the
adverse financial effects of the COVID-19 pandemic, and the lack of any
financial assistance to STVR business-owners; and spoke in opposition of the
City imposing a moratorium on STVR.
CONSENT CALENDAR
1. APPROVE MINUTES DATED JUNE 16, 2020
2. APPROVE MINUTES DATED JULY 7, 2020
3. ADOPT RESOLUTION TO APPROVE MODIFICATIONS TO
CODORNIZ MAINTENANCE ASSOCIATION FEE AND FIRST
AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS,
RESTRICTIONS, AND RESERVATION OF EASEMENTS
[RESOLUTION NO. 2020-026]
4. AWARD CONTRACT TO URBAN HABITAT FOR CONSTRUCTION OF
THE LA QUINTA LANDSCAPE RENOVATION IMPROVEMENTS
PROJECT LOCATED AT LA QUINTA RANCHO OCOTILLO
DEVELOPMENT, ON THE SOUTH SIDE OF FRED WARING DRIVE
AND EAST SIDE OF ADAMS STREET (PROJECT NO. 2016-03E)
5. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
MAY 31, 2020
6. APPROVE DEMAND REGISTERS DATED JULY 3 AND 10, 2020
MOTION – A motion was made and seconded by Councilmembers
Radi/Fitzpatrick to approve the Consent Calendar as recommended, with Item
No. 3 adopting Resolution No. 2020-026, respectively. Motion passed
unanimously.
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