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HomeMy WebLinkAbout2010-02-01MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY MONDAY, FEBRUARY 1, 2010 — 10:00 A.M. NORTH WING CONFERENCE ROOM - PALM DESERT CIVIC CENTER 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 I. CALL TO ORDER President Finerty convened the meeting at 10:02 a.m. II. ROLL CALL Present: Vice President John J. Benoit Commissioner Dean Deines (Alternate) Commissioner John M. Wohlmuth President Cindy Finerty Excused Absence: Commissioner Bill Luna Also Present: William L. Strausz, Authority Counsel Justin McCarthy, ACM for Redevelopment, City of Palm Desert Paul S. Gibson, Director of Finance/City Treasurer/Authority Treasurer Steve Aryan, Assistant to the City Manager Barry Nestande, Chief of Staff, 4th District Supervisor John J. Benoit Lynda Kerney, Legislative Assistant, 4th District Supervisor John J. Benoit Mojahed Salama, Engg. Div. Mgr., Riv. Co. Transptn. and Land Mgmt. Agency Rachelle D. Klassen, Secretary III. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR A. MINUTES of the Adjourned Regular Riverside County Palm Desert Financing Authority Meeting of December 8, 2008. Rec: Approve as presented. With unanimous concurrence of the Authority Commission Board, the Consent Calendar was approved as presented. V. CONSENT ITEMS HELD OVER None MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY VI. NEW BUSINESS FEBRUARY 1, 2010 A. CONSIDERATION OF THE REIMBURSEMENT OF ANIMAL SAMARITANS FOR STREET IMPROVEMENTS AT THE COACHELLA VALLEY ANIMAL CAMPUS. Commissioner Deines recalled for the Authority Commission Board that the Authority issued bonds to build the Coachella Valley Animal Campus in 2003. There was an agreement to do some road work, some improvements. A letter was received from Animal Samaritans recently, asking for reimbursement on some road work that they're completing. The County Transportation Department looked into the matter as to what the Authority's obligations are, as well as the requirements, and the work that was already done. He asked Mr. Salama to elaborate. Mr. Salama handed out an 81/2" x 11" engineering map showing the site, including highlighted areas to illustrate the meaning of the Animal Samaritans letter and how the County understood it in relation to the original 2003 Purchase and Sale Agreement (Exhibit C - Buyer's Other Obligations). In his opinion, Animal Samaritans mistakenly measured from the wrong point - measuring 1,023 linear feet of new sidewalk installation for the frontage of the Coachella Valley Animal Campus (CVAC) solely along Pet Land Place (formerly known as Del Norte Drive) from Rio Del Sol, instead of what was actually built along both Rio Del Sol and Pet Land Place for the frontage of the CVAC. Animal Samaritans is asking for completion of sidewalk for the entirety of Pet Land Place, which they constructed recently and are asking for the reimbursement. Therefore, he believed it was a misinterpretation of the Purchase and Sale Agreement. As far as the Animal Campus, it has fulfilled all of the obligations for improvements with the exception of the northerly driveway behind Animal Samaritans' property. Vice President Benoit asked whether or not anyone currently working with the Authority could add any clarity to the matter, such as an agreement made at the time to do the curb all the way to the end of the Animal Samaritans new property. It was noted that then -City Special Projects Administrator Pat Conlon had retired from the City, and County staff had not made contact with then -County Deputy Executive Officer Michael O'Connor. Mr. Gibson recalled that during one of the updates provided at an Authority Commission Meeting, there was mention of a slight dispute but that it was decided to go ahead as was constructed to keep the project moving forward and to let the two parties work things out later on. 2 MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY FEBRUARY 1, 2010 Vice President Benoit agreed that the clear answer to getting the work done was to let them do it as part of their construction, to avoid having to go to all the cost of going out to do another individual project that might cause yet another dispute about who would pay for it. It would be more efficient and cost effective to let the contractor already planning on finishing up at the site do the work, then let the Authority Commission know the reimbursement portion. He noted that the rear driveway was not yet completed behind Animal Samaritans; but they haven't yet asked anything about it, which was likely because they weren't ready to construct it with the building currently under construction, and the driveway would be part of the finishing the lot in its entirety. He said this matter was not in dispute. Additionally, he understood that there was a bond issued, and that all the money has been allocated with none remaining. Mr. Gibson confirmed that the funds were used up; there was about $30,000 remaining, and it was transferred over to the Capital Improvement Fund, per the County's request. Mr. Salama pointed out that after carefully looking at the Animal Samaritans letter, it seems that they are including the remainder of the driveway into the dispute as part of the "relevant factors." They are asking for 412.93 linear feet of 24-foot-wide driveway at the north end of the property. Upon inquiry, he said it was not part of the $37,000 price; there was no price offered for the cost of that construction. Ms. Kerney added that Animal Samaritans was getting estimates. In response to question, she said the two items were addressed separately in the letter. In answer to Commissioner Wohlmuth's question about why Animal Samaritans needed two driveways, Mr. Salama said it was a private driveway. Ms. Kerney added that in Exhibit C of the Agreement, it was addressed as Item 1(d) — Install 24-foot-wide driveway (approximately 1,038 lineal feet length) at north line of the initial site. She said the reason they have the driveway in the rear is because their trash enclosure is back there, and access to it is necessary. Vice President Benoit added that it is also necessary for driving the Animal Enforcement vehicles around the back to deliver animals to and from the CVAC, as well as supplies, to an access at the rear of the building (large roll - up door). In answer to question, he said these activities couldn't be accomplished at the front of the building, there needed to be vehicle access to the rear. 3 MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY FEBRUARY 1, 2010 Responding to question, Commissioner Deines said the north driveway had yet to be completed by the Authority Commission, as required in Exhibit C of the Purchase and Sale Agreement. He said the only thing in question is the street and curb work in front of the Animal Samaritans property. In further response, he said a cost for the north driveway had not been specified and believed it would be part of the overall bid that Animal Samaritans would put out for overall construction. The cost would have to be separated out and the Authority Commission would have to be notified for reimbursement; however, the Authority Commission didn't have any funds. Animal Samaritans advises the cost for the entirety of Pet Land Place was $37,000+, including some engineering costs (probably about $40,000). No estimate has been given for the 412 feet of driveway on the north side. Upon question by Vice President Benoit about what the north driveway may cost, Mr. Salama said it would likely be about $30,000±. Commissioners concurred that perhaps a savings could be realized if construction of the northerly driveway was combined with the Animal Samaritans parking lot. Vice President Benoit acknowledged that without a firm number, it is difficult to discuss the matter. He suggested continuing this matter to the next meeting. Mr. Salama reiterated that the issue of the northerly driveway was not in question, it was in the Agreement; and whatever the price ends up being will have to be addressed by the Authority Commission Board. The disputed issue is the extra work in front of the Animal Samaritans property and whether or not that has to be paid by the Authority, subject to interpretation of the Agreement. Responding to question, further discussion occurred to clarify what improvements the Authority had constructed with bond funds it issued for the CVAC. Vice President Benoit recalled that Animal Samaritans donated the property where the CVAC is located, with the understanding that they would receive certain improvements from the Authority as part of the deal — it was now a matter of how far those improvements extend. He wanted to work it out to keep the cooperative spirit of the project intact. Vice President Benoit moved to, by Minute Motion, continue the matter for a month so that he could meet with staff and Animal Samaritans to see if a resolution could be specified for the Authority Commission Board. Motion was seconded by Finerty and carried by unanimous vote. Mr. Strausz commented that given the Agreement with Animal Samaritans provides for one thing and another thing happened, and in order to make 4 MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY FEBRUARY 1, 2010 sure that the right parties are taking responsibility for the right design and construction, he recommended that the Agreement be amended to provide terms for whatever is worked out. Commissioner Deines added that staff had sent the Agreement to County Counsel to see what would have to be done in order to make that payment. He agreed that it may be helpful to memorialize the terms in an amendment to clarify each party's responsibility. Responding to question, Mr. Strausz felt the matter was something that could be negotiated and presented either to his office or to County Counsel. Commissioners concurred. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. REPORTS AND REMARKS A. PRESIDENT None B. VICE PRESIDENT None C. MEMBERS OF THE AUTHORITY None D. STAFF None 5 MINUTES REGULAR MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY X. ADJOURNMENT FEBRUARY 1, 2010 On a motion by Benoit, second by Finerty, and unanimous vote of the Authority Commission Board, President Finerty adjourned the meeting at 10:26 a.m. ATTEST: %%16». CIN Y FINERiY, PRESIDENT/ H -LLE D. KLASSEI4, SECRETARY R;VF_RSIDE COUNTY PALM DESERT FINANCING AUTHORITY 6