HomeMy WebLinkAbout1993-10-14MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, OCTOBER 14, 1993
CIVIC r c� 1 Li( COUNCIL CHAMBER
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. CALL TO ORDER
Chairman Benson convened the meeting at 8:25 p.m.
H. ROLL CALL
Present:
Member Buford A. Crites
Member Richard S. Kelly
Member Walter H. Snyder
Vice Chairman S. Roy Wilson
Chairman Jean M. Benson
Also Present:
Carlos L. Ortega, ACM/Director of Redevelopment Agency
Bruce A. Altman City Manager
David J. Erwin, City Attorney
Sheila R. Gilligan, Agency Secretary
Ramon A. Diaz, ACM/Director of Community Development
Richard J. Folkers, ACM/Director of Public Works
Paul Shillcock, ACM/Director of Economic Development
Dave Millheim, Director of Human Resources
Agnes Flor, Acting Director of Finance
John Wohlmuth, Assistant to the City Manager
III. CONSENT CALENDAR
A. MINUTES of the Adjourned City Council/Redevelopment Agency Meeting of December 21,
1992, and the Regular Meeting of the Redevelopment Agency of September 23, 1993.
Rec: Approve as presented.
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *"* *
B. CLAIMS AND DEMANDS AQAINST THE AGENCY TREASURY - Warrant Nos. 9, 10,
12 and 13.
Rec: Approve as presented.
C. PRELIMINARY SCHEDULE OF INVESTMENTS as of September 30, 1993.
Rec: Receive and file.
D. REQUEST FOR RELEASE of Improvement Securities - Tract 27546 (Sterling Partners, Inc.,
Applicant).
Rec: By Minute Motion, authorize the release of improvement securities associated with
Tract 27546.
E. REOUEST FOR APPROVAL of Grant of Easement to Southern California Edison (SCE)
Along San Pablo Avenue - Civic Center Park Phase III).
Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert
Redevelopment Agency Board, to execute a Grant of Easement for SCE along the
Pablo Avenue extension to Magnesia Falls Drive.
F. REQUEST FOR APPROVAL, of Grant of Easement to Southern California Edison (SCE)
Across Redevelopment Agency -Owned Parcels within the Civic Center Park Phase III.
Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert
Redevelopment Agency Board, to execute a Grant of Easement for SCE across
Redevelopment Agency -owned parcels within the Civic Center Park.
G. REQUEST FOR gPPROVAL of Grant of Easement to Coachella Valley Water District
(CVWD) Across Redevelopment Agency -Owned Parcels within the Civic Center Park Phase
III.
Rec: By Minute Motion, authorize the Chairman, on behalf of the Palm Desert
Redevelopment Agency, to execute a Grant of Easement for CVWD across
Redevelopment Agency -owned parcels within the Civic Center Park.
H. REOUEST FOR APPROVAL to Utilize Services of Richard Caplan & Associates (Contract
No. R07980) in the Analysis of Section 4 Development.
Rec: By Minute Motion, authorize staff to utilize the services of Richard Caplan &
Associates (Contract No. R07980) in the analysis of Section 4 development and
appropriate an amount not to exceed $10,000 from the Agency's unobligated
reserve for that process.
2
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. REOUEST FOR AUTHORIZATION to Advertise and Ca11 for Bids for the Las Palmas and
Highway 111 Utility Undergrounding Project (Contract No. R07990).
Rec: By Minute Motion, authorize the Redevelopment Agency to advertise and call for
bids regarding the Las Palmas and Highway 111 utility undergrounding project.
J. REOUEST FOR APPROVAL of Partial Notice of Completion for Signage Engraving
Program (Contract No. R06960).
Rec: By Minute Motion, authorize the Secretary of the Palm Desert Redevelopment
Agency Board to file a partial notice of completion for the subject project.
Upon motion by Kelly, second by Crites, the Consent Calendar was approved as presented by
unanimous vote of the Agency.
IV. ORAL COMMUNICATIONS
None
V. RESOLUTIONS
None
VI. CONSENT ITEMS HELD OVER
None
VII. NEW BUSINESS
None
VIII. CONTINUED BUSINESS
None
3
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
IX. OLD BUSINESS
A. REOUEST FOR CONSIDERATION OF AGREEMENT REGARDING ANNEXATION
WITH THE COUNTY OF RIVERSIDE, REDEVELOPMENT AGENCY OF THE
COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND THE PALM DESERT
REDEVELOPMENT AGENCY RELATIVE TO PALM DESERT ANNEXATION NO. 29.
Mr. Ortega reviewed the staff report and offered to answer any questions.
Member Crites moved to, by Minute Motion, approve Contract No. C07720 between the City of
Palm Desert, the Palm Desert Redevelopment Agency, the County of Riverside, and the Redevelopment
Agency of the County of Riverside, and authorize the Chairman to execute same. Motion was seconded by
Kelly and carried by unanimous vote.
B. REOUEST FOR APPROVAL OF CONSULTANT COST FOR SECTION 4
DEVELOPMENT.
Mr. Ortega reviewed the staff report and recommendation.
Upon question by Chairman Benson, Mr. Ortega explained that with regard to the Put
Option, there was a provision in the exclusive right that if we could not agree on the project,
the Bishop estate could offer their half of the property to us, and we would purchase it with
interest. That agreement expired May 5, 1993, and our contention has been that while we
may still agree to buy it from them, the interest stops accruing as of May 5th. He said this
would recognize that the Put Option is still valid, with the proviso that we are not responsible
to pay interest past May 5, 1993.
Member Kelly moved to, by Minute Motion: 1) Authorize staff to continue working with
consultants providing design and planning for Section 4 development and appropriate $398,117 from the
Agency's unobligated reserve for that cost; 2) authorize the extension of the Put Option held by the Bishop
Estate regarding the land acquisition in Section 4 to December 3, 1993, with the provision that the Agency
is not responsible for interest in such transaction as of May 5, 1993.
Upon question by Mr. Altman, Mr. Ortega stated that the Governor had just recently signed
litigation wherein we will not be able to do this project unless we enter into the agreement
by the end of the year. This is because the legislation does provide that if you have started
these types of projects, as long as you enter into an agreement by the end of the year, you
will be allowed to proceed.
Mr. Altman suggested that the motion be to authorize the recommendation contingent upon
someone else besides Member Kelly joining staff to go over the numbers in total and make
sure it's in line with what the Agency is trying to do.
Chairman Benson seconded the motion by Member Kelly.
4
IvDNUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Member Kelly noted that this is an opportunity to create income for the City for the future
that the State of California cannot take away from us in the future. He said that if we do not
take advantage of this before January 1, 1994, the opportunity will be gone. In addition, this
is an opportunity to develop Section 4 the way we want it to be.
Chairman Benson called for the vote. Motion carried by a 4-0-1 vote, with Member Wilson
ABSTAINING.
X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
1. Palm Desert Chamber of Commerce
Mr. Ortega stated that the Palm Desert Chamber of Commerce had requested
consideration of the remodel of the Visitor Center.
Member Crites moved to add this item to the Agenda for discussion. Motion was seconded by
Kelly and carried by unanimous vote.
Mr. Ortega stated that the request was that the Agency Board authorize the
Chamber of Commerce to do some internal remodeling; the reason the Chamber
is making this request is because it cannot make any changes without first obtaining
Agency approval. He noted that the proposal from the members indicated the
remodeling would be done with donated labor, and they requested that the Agency,
therefore, pay for the materials. The specific recommendation is that the Agency
Board authorize reimbursing the Chamber of Commerce for the cost of materials
only as long as there is an agreement between the Agency and the Chamber that
requires going through certain bidding procedures for that material. He said the
amount to be authorized would not exceed $26,000.
Member Crites pointed out that they would not be remodeling the Chamber offices;
the work of remodeling was to be in the portion of the building used as the City's
Visitor Information office.
Chairman Benson expressed concern that we might be getting into the same
situation as we had at the fire station where regular labor was not used.
Mr. Ortega responded that he would be working with legal counsel to make sure
we do not have that type of problem. He said that is why the Agency would pay
for materials only, with the provision that they would still comply with State law
and the City's provisions regarding the bidding of materials.
5
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
* * * * * s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Member Kelly moved to, by Minute Motion, approve the reimbursement to the Palm Desert
Chamber of Commerce for the cost of materials only to remodel the Visitor Information Center portion of
the Chamber in an amount not to exceed $26,000, subject to an agreement between the Agency and the
Chamber that requires going through certain bidding procedures for said material. Motion was seconded
by Crites and carried by unanimous vote.
B. AGENCY COUNSEL
Mr. Erwin requested a Closed Session at the appropriate time pursuant to Government Code
Section 54956.9(a), pending litigation (Palm Desert Greens v. City of Palm Desert; City of
Palm Desert v. Refco and Iowa Trust), and Section 54956.8, Real Property Transactions
(Acquisition of property on Country Club Drive currently owned by Western Community
Developers).
C. CHAIRMAN AND MEMBERS OF THE AGENCY
Member Wilson stated that some time ago the Agency entered into a process to allow the
residents of Portola Palms Mobilehome Park to purchase their property. He said he thought
it was complete; however, he had received an inquiry from a person who lives in this park
who wants to be a property owner and indicated the process seems to be hung up. He asked
for a progress report.
Mr. Ortega responded that the State and the Agency agreed to participate in the acquisition
of the park, with both agencies helping to fund those spaces that would be acquired by low
and moderate income persons. He said it would basically be a loan so the low and moderate
income persons could acquire it, and we would institute the same payback requirements
instituted with the self-help program, that if they sold it we would have first right of refusal
and if they sold it at a profit we would get some of the profits. He said that out of the 142
spaces, the Agency and State have funded 43, with 99 spaces that needed to be acquired by
the tenants themselves. He stated that at this time, they only have 47 tenants ready to acquire
their property, leaving 42 spaces that still have not decided whether to acquire. He said they
had gone to a private lender to help them with the balance; they took a loan of approximately
$3 million, which was up the first of October. He said the lender could have technically
foreclosed on the park; however, through staffs intervention, the lender had decided to
extend the loan if we participate in the solution to the problem. He noted the State had also
basically said it would put in as much money as it can, but that still would not solve the
problem. He said staff would be bringing back to the Agency a program by which we can
assist those people, and the Agency may end up owning some of the lots as a result of this
process, which could then be used .as part of our low and moderate income housing space
rental program. He added that the attorneys for the Agency and the lender were currently
working on the documents that will bring this forth.
6
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 14, 1993
« « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « «
XL ADJOURNMENT
Member Wilson moved to adjourn to Closed Session at 8:40 p.m. pursuant to Government Code
Section 54956.9(a), pending litigation (Palm Desert Greens v. City of Palm Desert; City of Palm Desert v.
Refco and Iowa Trust), and Section 54956.8, Real Property Transactions (Acquisition of property on
Country Club Drive currently owned by Western Community Developers). Motion was seconded by Kelly
and carried by unanimous vote.
ATTEST:
1 �/
. tihi tti, -1.(7,e4et,
SHEILA R GILLIGAN, SECRETARY TO THE
PALM DESERT REDEVELOPMENT T AGENCY
,AFT M. BENSON, CHAIRMAN
7