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Home My WebLink About2023-01-26 Q&A MemoCITY OF PALM DESERT INTEROFFICE MEMORANDUM Date: January 26, 2023 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of January 26, 2023 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: ITEM 2A: AWARD A CONTRACT TO MARKS ARCHITECTS, INC., IN THE AMOUNT OF $1,142,400 FOR ENGINEERING AND DESIGN SERVICES FOR THE PARKVIEW OFFICE COMPLEX (PROJECT NO. 726-17) Q1: We have a fund with roughly $5 million set aside for renovations of the Parkview Office Complex that has been accumulating from fees collected from past and current renters. Is that fund the source of the $1.4 million that we will be paying Marks Architects with or is that money coming from another source? A1: Yes. The Parkview Office Complex is part of our Enterprise Fund (self-supporting government fund) that currently has about $5 million plus the $1.497M that has already been budgeted for the project. Current annual rent in the Enterprise Fund generates approximately $1.35M, with operations costs estimated at $1.2M. Net Revenue for 2022 was approx. $425k. Q2: Marks Architects was the only company to bid on this project. Does that raise any concerns? Any speculation as to why more firms did not bid on this job? A2: Initially there were concerns. However, 367 firms viewed the request for proposals (RFP) and 44 firms downloaded the RFP from our public online platform OpenGov. In addition, staff reached out to three other engineering/design firms to further enhance awareness of the RFP. Feedback from these firms indicated they were at capacity and could not commit to the project. Staff conducted further due diligence through a cost analysis by HR Green which resulted in a price reduction of over $236,000 and (HR Green) concluded this was a fair cost proposal. Q3: Is there any preliminary estimates on the actual cost of renovations needed for Parkview or are we simply waiting for Marks to conduct their work? A3: There are no preliminary estimates. However, after a comprehensive assessment of building deficiencies (code, ADA, etc.) and stakeholder feedback (tenants, economic development subcommittee), a cost estimate and exterior conceptual renderings will be presented to the City Council for direction. Q & A Memorandum-1 01/26/2022 Question & Answer Memo Page 2 of 3 ITEM 2B: AWARD A CONTRACT FOR THE NORTH SPHERE FIRE STATION DESIGN AND BUILDING ASSESSMENT OF FIRE STATION 33 AND 71 TO PBK ARCHITECTS IN THE AMOUNT OF $674,000 (PROJECT NO. 762-23) Q1: What is the average Transient Occupancy Tax (TOT) and sales tax revenue in Riverside County? A1: The County’s website indicates they assess a 10% TOT rate. Like the cities, the “local jurisdiction” in a County Area would receive 1% of the Bradley-Burns sales tax in that area. The County also has access to Prop 172 sales tax money, which requires that one-half cent sales tax in each county be reserved for public safety purposes. Sales Tax in California is broken down as follows (of the current 7.75%): • 6.00 percent to the State • 1.00 percent to the Local Jurisdiction • 0.25 percent to the Local Transportation Fund • 0.50 to County Public Safety Fund (Prop 172) The County’s Budget for 22/23 shows the following values for their General Fund-Discretionary Revenue. • TOT is lumped in with Other Misc Revenue at $25.8M for 22/23 and includes landfill fees, leases, and revenue sharing. • Sales and Use Tax is listed at $42.9M • Public Safety Sales Tax is $284.1M Q2: What are the ages of Fire Stations 33 and 71? A2: Fire Station 33 was built sometime between 1983-1985. Fire Station 71 was built between 1984- 86. Q3: Have there been any previous remodels on those two stations? If so, when and how much did they cost? A3: Station 33 – Foundation had to be re-engineered 18 months after the fire station opened, unable to pull costs at this time. Kitchen Remodel in 2004, unable to pull these costs currently. Bathroom Remodels in 2009 or 2010, unable to pull these costs. City Staff has been addressing a lot of deferred maintenance in the last 18 months: • Mold Mitigation at 33 and 71 totaling $137,000. • Of the $190,000 in maintenance and repair budget, $85,000 spent to date (this fiscal year). • Of the $108,400 in the capital office budget, $52,000 spent to date (this fiscal year). ITEM 2C: APPROVE PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $227,000 WITH PREST-VUKSIC-GREENWOOD ARCHITECTS (PVGA) FOR WORK RELATED TO DISCOVER PALM DESERT, A NEW VISITOR SERVICES CENTER LOCATED AT PALM DESERT CIVIC CENTER Q1: Under the project description it states that the total project cost is now estimated to be $6.5 million. This conflicts with the letter (Page 2C-25) from the architects which states that the total project cost is now estimated to be $3.5 million. Which amount is correct? A1: Staff made a mistake and the $6.5 million is a typo. We have confirmed with the architects that the estimated cost is $3.5 million. Q & A Memorandum-2 01/26/2022 Question & Answer Memo Page 3 of 3 ITEM 3B: CONSIDERATION OF AN APPEAL OF A DECISION OF THE PLANNING COMMISSION ADOPTING A MITIGATED NEGATIVE DECLARATION PURSUANT TO THE STATE OF CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), APPROVING A PRECISE PLAN (PP), AND CONDITIONAL USE PERMIT (CUP) FOR A 394-UNIT MULTIFAMILY PROJECT DEVELOPMENT ON AN 18.31-ACRE SITE LOCATED AT THE SOUTHWEST CORNER OF FRANK SINATRA DRIVE AND PORTOLA AVENUE (APNs 620-400-030 AND 620-400-031) 394 UNIT PROJECT Q1: Where can I watch the planning meeting where the Portola & Frank Sinatra project were discussed? A1: As requested, a link has been provided for Case No. PP/CUP22-0006 394-units Frank Sinatra and Portola Avenue, to view the recording of the Planning Commission meeting held December 6, 2022: Click Here. Q2: Is there any more information available about Hayes Dietrich, LLC? A2: From the applicant: "...this is our first development on our own. Both Calvin and I previously worked for Doran Companies, one of the largest multifamily developers in the Midwest and one of the largest general contractors in Minnesota. I have attached our general profiles for additional reference. We have mentioned that this is our first project at past meetings since breaking off to start our own firm. Calvin Hayes previously resided in Palm Desert for approximately 7 years before moving to Minnesota about 11 years ago. As part of us starting our own firm, he wanted to get back to this area and help create high quality housing that we are accustomed to providing for this area, seeing a significant need in the market. Calvin is currently looking for housing and will be moving back to the area as we get closer to starting construction on the project. Calvin will remain in the Coachella Valley to lead that regional office as we plan to create a longstanding presence in Palm Desert and the neighboring cities. Additionally, we are working on several other projects in the Minnesota market and currently have a 330-unit development in Plymouth, MN, being submitted for an initial sketch plan review in the coming weeks. Below are website links to several of the projects that we previously worked on and show the level of quality that we will be bringing to the Frank Sinatra and Portola luxury housing development. Expo Luxury Apartments & Townhomes, Skyline Views Minneapolis (expompls.com) – Expo (Minneapolis, MN) – 369-unit 25-story high rise building with separate 6-story mid-rise building and small retail component. Luxury Apartments in Maple Grove | The Reserve at Arbor Lakes – The Reserve at Arbor Lakes (Maple Grove, MN) – 531-units of 4-story buildings with 30,000 SF clubhouse Luxury Apartments South Metro The Triple Crown Residences (thetriplecrownapts.com) – Triple Crown (Shakopee, MN) – 321-unit 4-story building with 18,000 SF clubhouse Q3: Page 63 refers to a letter dated October 3, 2022, from the applicant responding to resident concerns. Please provide this letter. A3: The letter is now posted on the City website with the agenda item and can be accessed by clicking here. Q & A Memorandum-3