HomeMy WebLinkAbout1995-08-24. MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, AUGUST 24, 1995
CIVIC CENTER COUNCIL CHAMBER
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I. CALL TO ORDER
Chairman Crites convened the meeting at 4:00 p.m.
H. PLEDGE OF ALLEGIANCE - Chairman Buford A. Crites
III. INVOCATION - Member Jean M. Benson
IV. ROLL CALL
Present:
Member Jean M. Benson
Member Richard S. Kelly
Vice Chairman Walter H. Snyder
Member Robert A. Spiegel
Chairman Buford A. Crites
Also Present:
Carlos L. Ortega, ACM/RDA Executive Director
Ramon A. Diaz, Acting City Manager
David J. Erwin, City Attorney
Sheila R. Gilligan, Agency Secretary
Richard J. Folkers, ACM/Director of Public Works
John Wohlmuth, ACM/Director of Administrative Services
Paul S. Gibson, Finance Director/City Treasurer
Wayne Ramsey, Director of Code Compliance
Phil Drell, Acting Director of Community Development
Lisa Constande, Environmental Conservation Manager
Mary P. Gates, Deputy City Clerk
V. ORAL COMMUNICATIONS
None
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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VI. CONSENT CALENDAR
A. MINUTES of the Regular Meetings of the Redevelopment Agency of July 13, July 27, and
August 10, 1995.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 55, 57,
58, 1, 2, 3, 4, 5, 6, 7, and 8.
Rec: Approve as presented.
C. PRELIMINARY SCHEDULES OF INVESTMENTS as of June 30 and July 31, 1995.
Rec: Receive and file.
D. REQUEST FOR APPROVAL of an Agreement with Rosenow Spevacek Group, Inc. (RSG)
to Provide Valuation Audit Services for Project Area No. 4 (Contract No. R10320).
Rec: Removed from Consent Calendar. See Section VIII, Consent Items Held Over, for
Agency Board action.
E. REQUEST FOR APPRQVAL of Sheriff Station Basement Improvements (Contract No.
C09440).
Rec: By Minute Motion, authorize the City Clerk to file a Notice of Completion for the
subject contract.
F. REQUEST FOR RATIFICATION of the Expenditure of $2,500.00 to the Rosenow Spevacek
Group, Inc. (RSG) for Tax Increment Verification Services.
Rec: By Minute Motion, ratify the expenditure of $2,500.00 to the Rosenow Spevacek
Group, Inc. (RSG) for tax increment verification services.
G. REQUEST FOR ACCEPTANCE OF WORK for Contract No. R08780 for Landscape
Irrigation Installation for Phase III Date Grove.
Rec: By Minute Motion, authorize the City Clerk to file a Notice of Completion on the
landscape irrigation installation on the Phase III Date Grove at the Civic Center
Park.
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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H. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for Reconstruction of
the Existing Backstops at the Civic Center Park Ballfields (Contract No. R10330).
Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the
reconstruction of the existing backstops at the Civic Center Park Ballfields.
I. REQUEST FOR APPROVAL of Contract for Services with the Desert Community College
District Auxiliary (dba Regional Business Assistance Center), Contract No. R10340.
Rec: Removed from Consent Calendar. See Section VIII, Consent Items Held Over, for
Agency Board action.
J. REOUFST FOR APPROVAL of Professional Services Contracts for the Section Four Golf
Course.
Rec: By Minute Motion, authorize the Palm Desert Redevelopment Agency to enter into
agreements for professional services on the Section Four Project with the following
consultants: 1) Advanced Engineering Group, Inc. of Palm Desert in the amount
of $14,000.00 for engineering services (Contract No. R10350); 2) Mainiero Smith
and Associates, Inc. of Palm Springs in the amount of $4,850.00 for erosion/dust
control plans and specifications (Contract No. R10360); 3) Southland Geotechnical
of Palm Desert in the amount of $31,000.00 for geotechnical/soils
reports/inspection services (Contract No. R10370).
Mr. Ortega noted that there was a change to Item I and asked that it be held for separate discussion
under Section VIII, Consent Items Held Over. Member Spiegel asked that Item D also be held for
separate discussion.
Upon motion by Spiegel, second by Kelly, and unanimous vote of the Agency Board, the remainder
of the Consent Calendar was approved as presented.
VII. RESOLUTIONS
None
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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VIII. CONSENT ITEMS HELD OVER
D. REQUEST FOR APPROVAL of an Agreement with Rosenow Spevacek Group, Inc. (RSG)
to Provide Valuation Audit Services for Project Area No. 4 (Contract No. R10320).
Member Spiegel asked if the figure quoted in the staff report was correct in that the potential
error could be as much as $ 150 million in assessed valuation. Mr. Ortega responded that it
was correct. He added that Rosenow Spevacek Group would do a parcel by parcel audit to
determine the exact amount and then staff would sit down with the County to discuss that
difference.
Member Spiegel moved to, by Minute Motion, authorize the Chairman to execute an agreement
with Rosenow Spevacek Group, Inc. (RSG) in an amount not to exceed $7,500.00, to provide valuation audit
services for Project Area No. 4. Motion was seconded by Kelly and carried by unanimous vote.
I. REQUEST FOR APPROVAL of Contract for Services with the Desert Community College
District Auxiliary (dba Regional Business Assistance Center), Contract No. R10340.
Mr. Ortega noted a change to page 3 of the agreement relative to indemnification and asked
that the Agency Board approve the agreement with the change.
Member Snyder moved to, by Minute Motion, approve a one-year contract with Desert Community
College District Auxiliary (dba Regional Business Assistance Center), Contract No. R10340, with the
contract amended as noted by Mr. Ortega. Motion was seconded by Benson and carried by unanimous vote.
IX. NEW BUSINESS
A. REQUEST FOR APPROVAL OF AGREEMENT WITH MICHAEL HURDZAN FOR
DESIGN OF THE SECTION FOUR GOLF COURSES (Contract No. R10380).
Mr. Ortega reviewed the staff report and offered to answer any questions.
Member Spiegel noted the staff report comment that Mr. Hurdzan had completed his design
of both North and South Courses and had been paid up to that aspect of the contract. He
asked what percentage of the contract had been paid.
Mr. Dave Yrigoyen responded that this was approximately 80% of the contract.
Member Spiegel asked why the contract was being moved from the City to the
Redevelopment Agency, and Mr. Ortega responded that it was because the funds were coming
from the Redevelopment Agency.
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Member Kelly moved to, by Minute Motion, assume the agreement with Michael Hurdzan for the
design of the Section Four Golf Courses and authorize the Chairman of the Agency to execute the
Agreement. Motion was seconded by Spiegel and carried by unanimous vote.
B. REQUEST FOR CONSIDERATION OF PORTOLA PALMS UPDATE AND
RECOMMENDATIONS.
Mr. Ortega reviewed the staff report and recommendation.
Chairman Crites noted the paragraph in the report relative to review of the advertising portion
of the Acquisition Association's marketing plan to see what changes are necessary for greater
success. He suggested that the City's advertising agency be used to help in marketing this
park.
Mr. Ortega stated that the Redevelopment Agency had hired a Housing Specialist who will
become involved in this park as well as other projects the Agency has. He said the intent was
to sell the lots, and every time one is sold, part of the loan is paid off.
Chairman Crites stated that it was the sense of the Board that whatever we can do to help this
marketing process, we should do.
Member Benson questioned the $10,000 to be used to repair the coach and asked whether it
would be sold.
Mr. Dennis Coleman responded that staff would try to get a low-income family to give the
coach to and sell the lot at the same time to take care of the entire matter.
Member Spiegel moved to, by Minute Motion: 1) Appropriate and authorize the expenditure of
$25,000 for closing costs associated with the sale of five (5) lots to low and moderate income individuals
residing at Portola Palms - to Account No. 870-4497-464-4001; 2) appropriate and authorize the expenditure
of $10,000 for repair and registration fees associated with the mobilehome donated to the City - to Account
No. 870-4497-464-4001; 3) note the sense of the Agency Board to do whatever we can to help the marketing
process for this park. Motion was seconded by Snyder and carried by unanimous vote.
C. INFORMATIONAL ITEMS:
1. Construction Program - Building Horizons (Boys' & Girls' Club).
Mr. Ortega reviewed the staff report, noting that this would be similar to the house
built by Habitat for Humanity. The intent was for the Agency to provide the lot
and some money for materials but not to pay for the total project. He said he
would be meeting with Riverside County Supervisor Roy Wilson the next day to
suggest that the County apply for training funds from CDBG. He added that staff
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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would continue to work with Building Horizons on necessary elements of the
program, with construction to begin sometime in late 1996.
Member Benson asked what the intention of Habitat for Humanity was as far as
taking over this project.
Housing Coordinator Teresa La Rocca responded that they were not in a position
to take on this project at this time.
No Agency Board action was taken on this item.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
None
XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
1. Mr. Shillcock distributed information to the Agency Board relative to a July 31,
1995, letter from the Department of Energy advising that the fuel cell project has
passed technical review, and as soon as there is a Federal budget in place, the
project will be funded out of the 1995/96 budget monies. In addition, he noted that
last week the Air Quality Management District had approved a three-year grant for
the fuel cell project. He noted that all of the commitments required in order for the
Agency to put its $300,000 in were in place.
2. Change Order No. 8 for the Multi-Agencv Library.
Mr. Ortega noted that this had come up after the Agenda was posted.
Member Spiegel moved to add this item to the Agenda. Motion was seconded by Kelly and carried
by unanimous vote.
Mr. Coleman stated that this change order in the amount of $67,215.00
encompassed work that needed to be done to complete the courtyard and to
integrate art ($62,055 for the courtyard work and $5,160 for the change to the
drywall for the art). Upon question by Member Spiegel, Mr. Coleman responded
that this would come out of the contract contingency, which would be down to
approximately $230,000.
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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Member Spiegel moved to, by Minute Motion, direct staff to send written consent to College of
the Desert (District) for Change Order No. 8 in the amount of $67,215.00 for the construction of the
courtyard. Motion was seconded by Kelly and carried by unanimous vote.
B. AGENCY COUNSEL
Mr. Ortega requested a Closed Session at the appropriate time for the following items:
Conference with Real Property Negotiator pursuant to Section 54956.8:
Property: 5 acres vacant land
Street Address: North of Country Club Drive and east of Portola Avenue
Assessor's Parcel No: 620-200-009
Negotiating parties:
Agency: Carlos Ortega and Dave Yrigoyen
Property Owner: Jack W. and Doris A. Morey
Dennis E. and Doris M. Thorson
Under negotiation: Price . Terms of payment
Property: 5 acres vacant land
Street Address: North of Country Club Drive and east of Portola Avenue
Assessor's Parcel No. 620-200-003
Negotiating parties:
Agency: Carlos Ortega and Dave Yrigoyen
Property Owner: Cassandra G. Johnson and Cynthia J. Varsi, Trustees for Omni
Trust
Under negotiation: Price Terms of payment
Property: 4.67 acres vacant land
Street Address: North side of Country Club Drive and east of Portola Avenue
Assessor's Parcel No. 620-200-028
Negotiating parties:
Agency: Carlos Ortega and Dave Yrigoyen
Property Owner: Frank R. and Linda H. Swiniuch
Under negotiation: a Price Terms of payment
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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Property: 5 acres vacant land
Street Address: North of Country Club Drive and east of Portola Avenue
Assessor's Parcel No. 620-200-020
Negotiating parties:
Agency: Carlos Ortega and Dave Yrigoyen
Property Owner: Emily Ann Corey, Eve Corey Poling
Under negotiation: _a_ Price Terms of payment
Property: 39 acres
Street Address: North of Country Club Drive and east of Portola
Negotiating parties:
Agency: Carlos Ortega
Property Owner: Palm Desert Redevelopment Agency/CT Golf
Under negotiation: Price . Terms of payment
Conference with Legal Counsel - Existing Litigation pursuant to Section 54956.9
Palm Desert Redevelopment Agency v. Bonnett, Riverside County Superior Court, Case No.
079025
Palm Desert Redevelopment Agency v. Palm Desert National Bank, Riverside County
Superior Court, Case No. 079025
C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
XIII. PUBLIC HEARINGS
A. REOUEST FOR APPROV6L OF RESOLUTIONS RELATIVE TO ACQUISITION OF
PROPERTY FOR REDEVELOPMENT.
Mr. Yrigoyen reviewed the staff report, noting that in order to adopt a Resolution of
Necessity, the Agency must find and determine that: 1) The public interest and necessity
require the project; 2) the project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury; 3) the property
described in the Resolution is necessary for the proposed project; and 4) the offer required
by Section 7267.2 of the Government Code has been made to the owner or owners of record.
Chairman Crites declared the public hearing open and invited testimony in FAVOR of or
OPPOSED to this request.
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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MR. WAYNE R. BUTLER, Boardwalk Financial Corporation, stated he represented
Bagdasarian Properties, Inc. and the Benz Group, owners of the r.,,;,.l�. He said the
owners had no objection to selling the property but objected to the price offered. He
expressed concern that he was not allowed to obtain a copy of the appraisal and was told that
it was not public record. The only information he was given was the comps used to come
up with the value. He said the subject property was right next to the Montecito tract where
lots were selling for $8.00 per square foot. With developer costs of approximately $2.00 per
square foot, he felt a realistic price for the if would be $6.00 per square foot or
$261,360 per acre; the City's offer was $68,000 per acre. He said he does not want to sue
anyone but would recommend suing the City if he did not get a good price. He said the
owners did not want to sell the r..,r:..lJ and would have a tax problem if they did sell it. He
asked that they be given consideration to negotiate and prove the value of this property.
MS. SAYRE WEAVER, Agency Legal Counsel, stated she had told Mr. Butler that the
appraisal on which just compensation is set by the Agency is privileged by the Bond Evidence
Code and the Code of Civil Procedure. If this proceeds to condemnation action, there is a
statutory exchange of appraisals at that time. She said she offered to provide him with the
comparable sales on which the appraisal was based. She noted that if the Agency were to
adopt the resolution of necessity and proceed with the action, there was nothing to stop the
parties from negotiating. She said she had talked with Mr. Butler about providing her with
information about how he would base an appraisal, and she would then give that information
to the Agency. The resolution would authorize the filing of a condemnation; negotiations
could take place, but there would be an action pending. She noted that the offer was made
long before the public hearing, and there had been ample time for negotiations.
Member Spiegel suggested that the property owner be given an opportunity to counter the
offer and that negotiations take place, with this matter being continued to the next meeting.
Ms. Weaver stated that what was before the Agency at this time was not the question of the
amount of compensation; the only issues were the four issues set forth by Mr. Yrigoyen.
Member Spiegel asked if the Agency needed the property that quickly and whether action on
this matter could be delayed for two weeks
Mr. Ortega responded that it could be held but that there had been ample time to negotiate.
He suggested that the Board adopt the resolution but instruct Ms. Sayre not to file until the
Board meets again.
Ms. Sayre stated that this did not meet the purpose of proceeding with the filing of the action
if what the Agency wants to do is get possession. She said if there is enough leeway to wait
and continue this hearing two weeks, do that and consider adoption of the Resolution at the
next meeting.
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PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995
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Qthr
Upon question by Chairman Crites relative to meeting with Mr. Butler during that time, Ms.
Sayre stated she would make herself available and that Mr. Ortega would also be available
to meet with him.
Mr. Ortega stated that the next meeting was three weeks away. He said this would not really
hurt anything except setting the whole schedule back at least a month; however, he said he
would recommend a condition that we get a counter offer in writing. He said the property
owners had had almost a month and had not done anything.
Mr. Butler stated the owners had not responded because Ms. Weaver was not available for
approximately a week during that time. He said he was hired about three weeks ago and had
been working on this diligently to get all of the comps. He said he could make an offer
tomorrow..
Member Spiegel moved to continue this hearing to the meeting of September 14, 1995. Motion
died for lack of a second.
Upon question by Member Benson, Ms. Weaver responded that Mr. Butler did not have the
entire appraisal because it is privileged under law. If an action is filed, at some point there
is an exchange of appraisals, with both parties exchanging appraisals. However, this usually
does not happen until right before the trial.
Mr. Butler noted that if the action were filed tomorrow, he would then have to hire an
attorney, and he felt this was all unnecessary.
Ms. Weaver stated that after the action is filed, there will be 30 days within which the owner
would have to file an answer. The owner would also then be entitled to an extension of up
to 60 days. She stated the Board could adopt the resolution of necessity at this meeting and
direct that she not file the action until perhaps Wednesday of next week. This way the
schedule would not be thrown that far off and Mr. Butler would have an opportunity to make
his proposal tomorrow.
Chairman Crites asked whether the Board could adopt the resolution and direct the Ms.
Weaver not file the action until authorized to do so by the Chairman. Mr. Ortega responded
that this could be done.
Ms. Weaver stated she understood her instructions to be that she would not be authorized to
file the action until advised by the Chairman of the Agency Board to do so.
Chairman Crites declared the public hearing closed.
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PALM DESERT REDEVELOPMENT AGENCY 111 r.iiilG AUGUST 24, 1995
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Member Spiegel moved to: 1) Waive further reading and adopt Resolution No. 3LI sating forth
environmental findings with regard to the adoption of a resolution of necessity declaring certain real r ,
necessary for pubic purposes and authorizing the acquisition thereof; 2) waive further reading and adopt
Resolution No. 31.4 declaring certain real necessary for public purposes and authorizing the
acquisition thereof. Said r , , r ... t is a parcel of , i r r ; ..: mately 20 acres of vacant land, located
approximately 1,320 feet north of Country Club Drive and ;,,,, , : mately 1,606 feet west of Cook Street
in the City of Palm Desert ("Subject Property'). The legal description of the Subject P. ,r ...C, is attached
to the staff report and therein by reference as Exhibit 1. A map showing the location of the
Subject Property is attached to the staff report and in...,.r...Jed therein by reference as Exhibit 2; 3) direct
the Agency Attorney not to file until authorized to do so by the Agency Chairman. Motion was seconded
by Benson and carried by unanimous vote.
XIV. ORAL COMMUNICATIONS
None
XV. ADJOURNMENT
Chairman Crites adjourned the meeting at 7:40 p.m. to Closed Session to continue discussion of
items listed under Agency Counsel Reports and Remarks. He reconvened the meeting at 8:50 p.m. and
immediot1y adjourned with no action announced from Closed Session.
ATTEST:
Ck
SHEILA GAN, CIVIC.
AGEN ARY
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