HomeMy WebLinkAbout1995-04-13MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, APRIL 13, 1995
CIVIC CENTER COUNCIL CHAMBER
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I. CALL TO ORDER
Chairman Crites convened the meeting at 6:00 p.m. and considered Agency Counsel Reports and
Remarks (please see that portion of the Minutes for Agency Board action.)
H. ROLL CALL
Present: Excused Absence:
Member Richard S. Kelly Member Jean M. Benson
Member Robert A. Spiegel Vice Chairman Walter H. Snyder
Chairman Buford A. Crites
Also Present:
Carlos L. Ortega, ACM/Executive 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
Paul S. Gibson, Director of Finance
Lisa Constande, Environmental Conservation Manager
III. ORAL COMMUNICATIONS
None
With Agency Board concurrence, Chairman Crites recessed the meeting at 6:00 p.m. to Closed
Session. He reconvened the meeting at 7:00 p.m.
IV. CONSENT CALENDAR
A. MINUTES of the Regular Meeting of the Redevelopment Agency of March 23, 1995.
Rec: Approve as presented.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 39 and
40.
Rec: Approve as presented.
C. REOUEST FOR AUTHORIZATION to Readvertise and Call for Bids for the Legends Field
Entry Way Columns (Contract No. R09600).
Rec: By Minute Motion, authorize the City Clerk to readvertise and call for bids for the
subject project.
D. REOUEST FOR AWARD OF CONTRACT to Deep Canyon Overhead Utility Conversion
(Contract No. R09830).
Rec: By Minute Motion: 1) Award Contract No. R09830 to Az -Tech Electric, Inc. in
the amount of $1,298.00; 2) authorize a 20% contingency in the amount of $260.00
to cover any unforeseen extra work on the above contract; 3) appropriate the total
amount of $1,558.00 from Account No. 850-4341-430-4001.
E. REOUEST FOR RATIFICATION of the Purchase and Installation of the Date Palm Trees
at the Civic Center Park Date Grove.
Rec: By Minute Motion, ratify the purchase and installation of the date palm trees at the
Civic Center 'Park Date Grove.
F. REOUEST FOR APPROVAL of Public Art Projects for the Multi -Agency Library.
Rec: By Minute Motion, approve the proposed designs by artists Barbara Field and
Reese Neimi for installation at the Multi -Agency Library.
Upon motion by Kelly, second by Spiegel, the Consent Calendar was approved as presented by
unanimous vote of the Agency Board.
V. RESOLUTIONS
None
VI. CONSENT ITEMS HELD OVER
None
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VIL NEW BUSINESS
A. BEELEST FOR APPROVAL OF APPLICATION FOR SOUTH COAST AIR QUALITY
MANAGEMENT DISTRICT FUNDING FOR THE PROPOSED FUEL CELL PROGRAM.
Mr. Ortega reviewed the staff report, noting that this was related to an item approved by the
Agency Board at its meeting of December 11, 1994. He stated that Mr. Shillcock was
available to answer any questions.
Member Spiegel asked whether this would require use of the entire former Corporation Yard.
Mr. Shillcock responded that it two of the bays would probably be sufficient plus the office
area.
Member Spiegel moved to, by Minute Motion, approve the Agency's application to South Coast
Air Quality Management District (SCAQMD) for proposed Fuel Ce11 Program. Motion was seconded by
Kelly and carried by unanimous vote.
B. INFORMATIONAL ITEMS:
1. Rotary Club House.
Member Spiegel stated that he had attended the dedication of the Habitat for
Humanity home built for the sexton for the Episcopal Church and was impressed
with what had been done. He said the family who had this house were overjoyed
with it and that it was the first home they had ever owned. He said he spoke with
a regional representative with Habitat for Humanity who was interested in
expanding the project in Palm Desert if they can work with the City in some way.
Member Kelly stated that there was a request where this organization has the youth
in the high school build a house, and he felt this was a good opportunity to educate
youth in a trade. He asked that this be investigated.
Chairman Crites stated he had gone to La Quinta with Chamber of Commerce
Executive Director Bob Leo to look at this year's project. He said he was
impressed with the commitment of those running the project, the students'
enthusiasm, etc., and he said he would also suggest that this be looked into. Mr.
Erwin added that he believed this was a project between the School District and the
Boys and Girls Club of the Coachella Valley in its Building Horizons program in
La Quinta.
Mr. Ortega said he felt it was appropriate at this time to introduce the
Redevelopment Agency's new Housing Programs Manager, Terri LaRocca.
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VIII. CONTINUED BUSINESS
None
IX. OLD BUSINESS
A. CONSIDERATION OF REOUEST FOR 30-DAY EXTENSION TO FINALIZE
DISPOSITION AND DEVELOPMENT AGREEMENT FOR DEVELOPMENT OF
SPORTSPARK ON COOK STREET
THE FOLLOWING IS A VERBATIM TRANSCRIPT OF THIS PORTION OF THE MEETING.
Key
CLO Carlos L. Ortega, ACM/Executive Director of Redevelopment Agency
BAC Buford A. Crites, Chairman of the Redevelopment Agency Board
RAS Robert A. Spiegel, Member of the Redevelopment Agency Board
RO Ron Odekirk, Developer
RSK Richard S. Kelly, Member of the Redevelopment Agency Board
DJE David J. Erwin, City Attorney
SRG Sheila R. Gilligan, Agency Secretary
CLO Mr. Chairman, as the staff report indicates, in December you approved an agreement which
was both a lease and a loan with regards to the pay for play sportspark. There was a
provision in there that we could offer the lessor a different site provided we did it under the
same terms and conditions as the agreement that was approved. Our intentions were to bring
to you a new agreement on a different site by about this time; however, the developer has
requested that we consider some changes to the agreement, and in the process there has been
a delay in coming to you with an agreement. As you know, we have new redevelopment law
which requires us to, in essence, have a long lead time before we would bring a proposal to
the Agency for consideration. While we as staff don't have any problems with recommending
an extension, we do have a problem in that the delays are going to take us beyond some
specific dates that are specified in the agreement, mainly that we would have to offer an
alternate site by July 31st, 1995. The developer is aware of our concern; however, he is
concerned about the specific recommendations because he says that under a specific
recommendation he could wind up without either site. And that is a possibility if we were
not to bring to you this agreement on a timely basis and therefore you could not offer an
alternate site pursuant to the agreement. He can address that, and I think once he addresses
the Board, we are prepared maybe to offer an alternate recommendation that still protects our
ability to offer an alternate site so that the time frames within which we have to offer that
alternate site don't.expire. So he may want to...
BAC Do you have an alternative that takes into account his concerns?
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CLO Right...
BAC And we can short circuit this...
CLO ...and the alternative would be that as opposed to the recommendation we say that the
extension is approved with understanding that by the end of May we would have to come to
an agreement on an alternate site. Otherwise, the provisions in the old agreement that gives
him until July 31st to offer a new agreement would expire. Our concern is that in order to
go through all the processes of AB1290 the end of May is about the last time frame that we
would have to negotiate an agreement and still go through the notification process, etcetera,
etcetera. That would be the alternative recommendation that we would offer.
BAC Would you explain that one more time.
CLO Okay. In the old agreement, in the agreement that you approved, there is...
RAS Portola?
CLO In the Portola agreement which was approved in December, there is a provision that at our
option, and it's solely at our option, we could offer the developer a different site under the
same terms and conditions, provided we do that by July 31 st, 1995, meaning if we did
nothing, then we would lose our ability to offer him a different site, meaning he would stay
on Portola. However, if we offered him an alternative site under the same terms and
conditions, whether or not he accepted that site, then we are free of any obligation on either
site. Okay? But our concern is that given those time frames in the existing agreement, that
if we continue to delay the consideration of an alternate site, by default we will have
approved the Portola site without the opportunity to offer him an alternate site.
RAS Does everything else July 31 st remain the same?
CLO The requirement that the developer provide his portion of the funds by July 31 st would
remain, but that is what is in the current agreement. We're not obligated to change the terms
of the agreement except if we agree to (unclear).
RAS That answers my question.
BAC Is that comfortable with you?
RO May I address the City Council? Mayor and City Councilmembers, I want to first of all
thank Mr. Ortega and his staff for the patience they've shown while we've tried to get the
agreement to our mutual satisfaction. It's been our problem getting our attorney to move
quickly. He got predisposed in some other business and didn't do his job. He's doing it
now, and I met with Mr. Ortega and we understand that in order to protect the City's position
we have to have this agreement done to our mutual satisfaction by May 31 st, and we are
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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confident we can do that. In fact, I believe we'll have those...our attorneys are working
together now on some language that will do what we need to be done, and I think we'll have
that done in the next two weeks. But I would appreciate if we could have the extension to
May 31st. If we don't provide the agreement to the City's satisfaction on the Cook Street,
then as I understand it they can present us the old agreement and that would be your
responsibility done with.
BAC So that's a yes to Carlos' proposal?
RO I believe it is, isn't it Carlos, if I understand it?
CLO Yes.
BAC Yes?
RO Yes, that is, but I would like to take a moment. I'm here for questions
(unclear)
RSK Let me get this clear, first.
RO Okay.
RSK That if we gave an extension to May 31st and July 31st stays like it is, we're talking about
the Cook Street site.
CLO That's correct. The purpose of the extension is to bring you a new agreement without losing
our rights under the old agreement.
RSK I didn't ask that.
CLO Alright.
BAC Okay, so we've got a yes now.
RO Now I'd like to address a related issue, and there's no formal action I'm asking on this. But
I would like to get an indication of a plan that has developed and I'd like to inform the City
Council on a new direction and a structure for the sportspark that we'd like to move toward,
and we'd like to know this meets your approval. We, since our December 22nd meeting,
we've been encouraged by local youth leaders and some substantial local supporters to make
this project a non-profit organization that would financially benefit our local youth programs.
We were introduced by some of these supporters to some corporate sponsors and a major
foundation that encourages sports for youth programs, and it appears positive. We have
retained a professional fund raising company. We've enlisted a number of respected local
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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and nationally known figures to support and assist us in this effort. And what we would like
to do is proceed under the plan where the City loan and lease terms would remain the same,
there would be nothing basically different than the deal, other than the fact that the Odekirk
company would assign the ownership of the project to a non-profit organization that would
provide a million and a half dollars of equity money that we need. We would continue to
work on their behalf under a contractual relationship to build and manage the park. The
difference is that instead of us doing it for the original investor group where it was done for
profit, the remaining profits after the City was paid its respective amounts, the money would
go to the youth programs of our valley. We've got a lot of... we've done some checking to
see what support we'd get from that among the youth leaders, and we've got a lot of support,
and we believe we can do this plan. It's going to take us a little time to put it together, and
that's what I'd like to see. If I can work out the language with Carlos and his staff, we
would like to bring you a disposition and development agreement that would give us a little
more time to have the million and half dollars up and to start our construction. What we're
prepared to do is to give let's say a maximum of six months to this effort to make it a non-
profit venture, and if we're successful then we would want, we would proceed. If we are
unsuccessful we will go back to the original investment group and proceed on a basis of a
profit making venture. But our new disposition and development agreement would have some
provisions and some new timetables attached to it, and my purpose in addressing you today
is just to see if there is any objection to us proceeding down this, this course for a number
of months.
RAS I believe we'd have to think about it (unclear)
BAC Make that comment, then.
RAS I'd like to see it written up so I know exactly what we're talking about, and also we're
missing two members of the Council so I don't think it would be fair to vote on it without
them.
BAC The Agency.
RAS The Agency, excuse me. I forgot where I was. Anyway, if we could get something like
that, maybe you could work with Mr. Ortega.
RO Could I ask you this, gentlemen. I'm not asking you for formal action. I'm telling you a
direction I'll go, and I'd like...if there is, if there is, we're proceeding and we're spending
money every day on this effort to do this on behalf of the youth programs. If this is
something that you think is a negative effect, then I'd like to know now, maybe we'll
abandon the idea. We see nothing but positive from this. We still have our job to do, our
job doesn't change as the builders and managers of the project, and we're going to be here
for thirty years, and there's nothing better we'd like as the people behind this to be working
for the youth programs for the next thirty years.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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RAS I just have one problem, Mr. Odekirk.
DJE Mr. Chairman. I'm sorry to interrupt Mr. Spiegel. If you're going to discuss it, you need
to put in on the Agenda and determine an emergency.
BAC In that case, I think the proper determination with this is that there is a request to have you
submit at least a prospectus as to what it is that you're proposing to do. We may formally
consider that as a Redevelopment Agency Agenda item and Mr. Spiegel's comment with the
full Board here.
RO When do you want us to do that?
BAC If you have it here in two weeks, it'll be on our Agenda in two weeks.
RO Okay.
BAC Or...if you have it here in two weeks, it won't be on the Agenda, but I mean if you have it
here by the time of preparation of the next Agenda, it will be on it.
CLO Mr. Chairman, that is not the issue before you.
BAC We understand.
CLO However, you know, of course, you can change an agreement any time you wanted provided
we go through the procedures. That doesn't prevent you from changing an agreement. What
we're trying to do is bring you an agreement that is substantially the same as that one which
you approved. There are going to be some minor changes.
BAC Okay.
RAS I move to approve the 30-day extension to finalize the disposition and development agreement
for development of the sportspark on Cook Street.
BAC As discussed by the Agency Executive Director.
RAS Yes.
BAC Okay, is there a second to that?
RSK Second.
BAC There's a motion and a second. Please vote.
SRG Motion carries by unanimous vote.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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B.
AWARD OF CONTRACT FOR SHERIFF STATION BASEMENT IMPROVEMENTS FOR
911 DISPATCH SYSTEM (Contract No. C09440).
Mr. Ortega reviewed the staff report, noting that this was for the purpose of accommodating
the 911 dispatch system in the Sheriff's Station. He said this was contingent upon successful
negotiation with the County of Riverside so that we can use their pass -through funds to do
the project. He said staff had met with the County and was in the process of reviewing the
request.
Member Spiegel moved to, by Minute Motion: 1) Award contract No. C09440 to Williams-Hedley
Development Corp., Palm Desert, in the amount of $143,500.00 and include a 10% contingency in the
amount of $14, 300; 2) authorize appropriation of $157, 800.00; 3) determine that award of the contract shall
be contingent upon successful negotiation with the County of Riverside for the use of pass through funds
to pay for the project, and a notice to proceed will not be given to the contractor until the use of pass
through funds is stipulated. Motion was seconded by Kelly and carried by unanimous vote.
X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Mr. Ortega stated that on Monday a committee of the Senate will be considering a bill
authored by Senator Kelley that will allow the Palm Desert Redevelopment Agency to annex
that County Redevelopment territory that is now within the City of Palm Desert but is still
in a County project area. He said we've got the appropriate language so we can annex only
that portion that is in the City if we want or we can annex that portion that is outside the
City. He said he felt the Agency needed that flexibility because it requires that we work out
an agreement with the County. He said he would be in Sacramento when this bill is
considered.
Upon question by Member Kelly, Mr. Ortega responded that there was no opposition.
B. AGENCY COUNSEL
Mr. Erwin asked that the following items be considered in Closed Session at an appropriate
time:
Conference with Legal Counsel - Existing Litigation pursuant to Section 54956.9(a):
1) Names of Parties: City of Orange and Others v. Alabama Treasury Advisory
Program and Others
Case or Claim Numbers: Superior Court for the County of San Francisco, Case
No. 956982 (OCM)
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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2) Names of Parties: Palm Desert Redevelopment Agency v. Peter D. Solomon, City
of Palm Desert, Orange Coast Title Company, Country Club
Care Center, Neufeld Investments, Ltd.
Case or Claim Numbers: Riverside County Superior Court Case No. Indio 80122
3) Names of Parties: RDA v. Bonnett
Case or Claim Numbers: Riverside County Superior Court, Case No. 079025.
Conference with Real Property Negotiator pursuant to Section 54956.8:
1) Property:
Assessor's Parcel Number: 620-200-003, 620-200-009, 620-200-020, 620-200-028
Negotiating Parties:
Agency: Palm Desert Redevelopment Agency
Property Owner: Cassandra Johnson, Jack and Doris Morey, Eve Poling, Frank
and Linda Swiniuch
Under potential negotiation: x Price _ Terms of payment
2) Property:
Assessor's Parcel Number: 620-200-031
Negotiating Parties:
Agency: Palm Desert Redevelopment Agency
Property Owner: Bagdasarian Prop., Inc.
Under potential negotiation: x Price _ Terms of payment
3) Property:
Assessor's Parcel Number: 620-200-021 and 029
Negotiating Parties:
Agency: Palm Desert Redevelopment Agency
Property Owner: Peter D. Solomon
Under negotiation: x Price Terms of payment
4) Property:
Assessor's Parcel Number: 620-200-053 and 056
Negotiating Parties:
Agency: Palm Desert Redevelopment Agency
Property Owner: Palm Desert Redevelopment Agency and CT Golf, Inc.
Under negotiation: x Price x Terms of payment
C. CHAIRMAN AND MEMBERS OF THE AGENCY
Chairman Crites expressed his appreciation to Mr. Folkers and Rudy Acosta and everyone
involved in getting the date palm trees planted in the Civic Center Park. He said the school
kids that were in this afternoon asked him if the City of Palm Desert had anything to do with
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 13, 1995
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the City of Indian Wells cutting down the date palms on Highway 111. He said it was nice
to be able to tell them that there will be date grove not only for them but for their kids for
the next half century or more. He said the next thing would be to put together some type of
master plan as to what we want to do with it in terms of ancillary things to go with it.
XI. ORAL COMMUNICATIONS
None
XII. ADJOURNMENT
With Agency Board concurrence, Chairman Crites adjourned the meeting at 8:00 to Closed Session
to continue discussions as outlined under Agency Counsel Reports and Remarks. He reconvened the meeting
at 9:15 p.m. and immediately adjourned with no action announced from Closed Session.
BUFO A. CRITES, CHAIRMAN
ATTEST:
SHEILA R. GILI:IGAN, S ' 1 ARY TO THE
PALM DESERT REDEVE O ' MENT AGENCY