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HomeMy WebLinkAbout1995-08-24. MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, AUGUST 24, 1995 CIVIC CENTER COUNCIL CHAMBER * * s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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 MINUTES'`'` PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 4 hmvoTEs PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * • * * * * * * * * s s s s s s s * * s s s * s s s s 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 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 1995 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 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. 10 MDIL tied►! PALM DESERT REDEVELOPMENT AGENCY 111 r.iiilG AUGUST 24, 1995 i i i i i i i * * * * i i i * * * * * * i * * i * * * * i i * i * i * * i 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 11