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HomeMy WebLinkAbout1996-01-11MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JANUARY 11, 1996 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Snyder convened the meeting at 5:25 p.m. H. ROLL CALL Present: Member Jean M. Benson Member Buford A. Crites Vice Chairman Richard S. Kelly Chairman Walter H. Snyder Excused Absence: Member Robert A. Spiegel 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 David Yrigoyen, Redevelopment Manager Mary P. Gates, Deputy City Clerk III. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR A. MINUTE of the Regular Meeting of the Redevelopment Agency of December 14, 1995. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 26, 27, 28, and 29. Rec: Approve as presented. C. REQUEST FOR APPROVAL of Amendment to the Palm Desert Redevelopment Agency Investment Policy. Rec: Waive further reading and adopt Resolution No. 32,3 amending the Palm Desert Redevelopment Agency Investment Policy. D. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Construction of the Irrigation Pump Station at Section Four North Golf Course Project 931-95/P00101 (Contract No. R10790). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the construction of the irrigation pump station at the North Course of the Section Four Golf Course. E. REQUEST FOR AUTHORIZATION to Negotiate Contract for Construction of Existing Civic Center Park Ballfield Backstops (Contract No. R10800). Rec: By Minute Motion, authorize staff to negotiate a contract for the modification of the "Legends Field" backstops. F. AWARD OF CONTRACT to Mainiero-Smith and Associates for Engineering Services on the Section Four Project South Course, Project No. 931-95/P00201 (Contract No. R10810). Rec: By Minute Motion, authorize staff to enter into an agreement with Mainiero-Smith and Associates of Palm Springs for engineering services on the Section Four Project South Course in the amount not to exceed $35,660.00. G. AWARD OF CONTRACT for Tournament Consultant for the Section Four North Golf Course Project 931-95/P00101 (Contract No. R10820). Rec: By Minute Motion, authorize staff to enter into an agreement with Peter Jacobsen Productions of Beaverton, Oregon, to provide tournament consulting services in the amount not to exceed $12,000.00, and authorize funding for the subject project to be paid from Account No. 851-4663-454-4001. 2 MINUTES _ PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * H. BEOUEST FOR APPROVAL of Notice of Completion for Contract No. R09600 - Legends Field Entry Way Columns (Project No. 910-95). Rec: By Minute Motion, authorize the City Clerk to file a Notice of Completion on the subject project. I. REQUEST FOR AUTHORIZATION to Enter into an Agreement with Dream Engineering for Electrical Consulting Services on the Section Four Project 930-95/P00101 (Contract No. R10830). Rec: By Minute Motion, authorize staff to enter into an agreement with Dream Engineering of Palm Desert to provide electrical engineering consulting services for the development and design of the power supply to the Section Four project in the amount not to exceed $24,000.00 from Account No. 851-4663-454-4001. Upon motion by Kelly, second by Crites, the Consent Calendar was approved as presented by unanimous vote of the Agency Board. V. RESOLUTIONS None VI. CONSENT ITEMS HELD OVER None VII. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR THE CONSTRUCTION OF THE IRRIGATION WELL AT THE SECTION FOUR NORTH GOLF COURSE SITE PROJECT 931-95/P00101 (CONTRACT NO. R10670). Mr. Yrigoyen reviewed the staff report and recommendation. Member Kelly moved to, by Minute Motion, authorize the Chairman to enter into an agreement with Southwest Pump and Drilling, Inc. of Coachella for the construction of the irrigation well in the amount of $223,815.00 and authorize a ten percent contingency in the amount of $22,381.50 from Account No. 851- 4663-454-4001. Motion was seconded by Benson and carried by unanimous vote. VIII. CONTINUED BUSINESS None 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IX. OLD BUSINESS None X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR 1. Request for Approval of Revision of Contract with Barbara Field for Library Artwork. Member Crites moved to add this item to the Agenda for discussion as an item which arose after the Agenda was posted. Motion was seconded by Benson and carried by unanimous vote. Mrs. Gilligan stated that there had been a delay in this contract because staff was attempting to reach an agreement with the College for the artist to have access to the library. In the meantime, the artist accepted another contract. In order to have the art on site for the opening in April, it was necessary to modify her contract in four different ways as outlined in the staff report. Also, an additional $6,000 would need to be added to the contract to allow the artist to hire some laborers, and this would help expedite the project. Ms. Sass added that the artist's work time had been reduced to two months in order for her to meet the opening deadline. She would normally have had six months to do the work. She said the additional $6,000 was for her to hire people to do a lot of the labor that she would have done on her own if she had the six months to do the work. She pointed out that there was a provision that should this not be done on schedule on April 1st, there would immediately be liquid damages of $1,000 per day for the following six days. This means the City would get its money back right away if the artwork is not in on time. Member Crites moved to, by Minute Motion, approve the contract as revised and authorize staff to proceed with execution of same. Motion was seconded by Benson and carried by unanimous vote. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. AGENCY COUNSEL Mr. Ortega requested a Closed Session at the appropriate time to consider the following items: Request for Closed Session: Conference with Legal Counsel - Anticipated Litigation pursuant to Section 54956.9 Significant exposure to litigation pursuant to subdivision (b): Number of potential cases. J Public Employment pursuant to Section 54957 Title of Position: RDA Executive Director C. CHAIRMAN AND MEMBERS OF THE AGENCY 1. Member Benson stated that the Council receives many letters relative to hiring local contractors instead of contracting with firms outside the Valley. She said she saw in the paper where local people working on a local job bring in workers from everywhere else to work in Palm Desert. She said it annoyed her that the Council gets harassed for not hiring local firms when the local firms are bringing in outside - workers. Member Crites moved to adjourn the meeting to Closed Session at 5:35 p.m. to discuss items listed under Agency Counsel Reports and Remarks. Motion was seconded by Kelly and carried by unanimous vote. Chairman Snyder reconvened the meeting at 7:00 p.m. RI. AWARDS, PRESENTATIONS, AND APPOINTMENTS None 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XII. PUBLIC HEARINGS A. JOINT PUBLIC HEARING WITH THE PALM DESERT CITY COUNCIL RELATIVE TO THE SPORTSPARK DISPOSITION AND DEVELOPMENT AGREEMENT (Continued from the Meeting of December 14, 1995). THE FOLLOWING IS A VERBATIM TRANSCRIPT OF THIS PORTION OF THE MEETING: Key WHS Walter H. Snyder, Mayor/Chairman RAD Ramon A. Diaz, City Manager CLO Carlos L. Ortega, Redevelopment Agency Executive Director DY David Yrigoyen, Redevelopment Manager IMB Jean M. Benson, Councilmember/Member LC Lynn Crandall, Attorney DJE David J. Erwin, City Attorney BAC Buford A. Crites, Councilman/Member RSK Richard S. Kelly, Councilman/Member AHE Arnold H. Einbinder, Retired Judge MP Marlene Paisokopf SRG Sheila R. Gilligan, Director of Community Affairs/City Clerk WHS Next item is Public Hearings. The first public hearing is a joint public hearing with the Redevelopment Agency relative to the Sportspark Disposition and Development Agreement. Mr. City Manager or Mr. Ortega. RAD Yes, the Executive Director... CLO Mr. Mayor and Mr. Chairman, as you have indicated, the bodies are meeting as a joint body, both as the City and the Agency. Let me provide some background on this project, and I'll Dave of my staff provide you the specifics of the proposed agreements, and then if you have any questions we also have our consultant on this matter. In December of 1994, this Council and Agency approved the very same agreements essentially on a site on Portola. There was provision in that agreement, however, that if we presented the developer with an agreement at a different site with essentially the same conditions, that we had the right to do so and that in the event that such substitute site and financial provisions were approved, that the agreement on the old site then would be null and void. As of this time, that agreement on Portola is binding. We are, however, prepared to recommend an agreement with financial terms with a couple of amendments. Let me generally recite those amendments to the agreement. We will bring them back to you as we would like to see them in the agreement officially. But essentially, there are two items that 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * DY the developer has indicated to us that he'd like us to reconsider in order for him to secure his financing. The agreement provided that the Agency could terminate the agreement if we chose not to or could not find another site to relocate the sportspark. This is after it had been built and was operational, of course. That provision was essentially applicable to the Portola site because as you know the Portola site has other uses, and we wanted to have the right to use the land for a use that would be more suitable to the adjoining uses, which are public golf courses and housing, etc. That provision was particularly important there. The site on which we are proposing that this be located now is one which is 203 acres. The proposed use is for a Cal State campus. The City Manager has spoken with the Cal State representatives, and they have indicated to him that they would have no problem if this use were to stay there. And if it helps the developer, we would recommend that the only right that we would have would be to relocate the site. Otherwise, it would be a 30 year agreement. The other has to do with the provisions whereby the agreement allows the transfer of the lease or the assignment of the lease, if you will, and sharing of some of the ex -proceeds of such a transfer whether it be through a sale of the business or assignment of the lease. The agreement provides that we would share in 50% of the consideration. The developer has rightly pointed out that the language is ambiguous and also that it doesn't allow them the ability to recoup their initial investment. We have proposed some language to the developer and would be bringing that language to you. Our proposal, therefore, is that you open the public hearing tonight, receive public testimony, then close the public hearing, and that we continue this item until your meeting of January 25th. If there are no initial questions, then I would have Dave Yrigoyen, who is prepared to give us. a summary of the business points. We also have our legal counsel here tonight, and he can answer some of the more technical legal issues with regard to this matter. An aspect of the process before you tonight is to consider whether this agreement meets the test pursuant to Section 33433 of the Health and Safety Code with regard to whether the transaction or the lease of the land either meets the test of the fair market value provisions or the fair reuse value provisions. You have the report in your packet identifying that these processes do indeed meet those provisions. The basic elements of the agreement are that the agreement is for the proposed pay for play sportspark. The Agency proposes to lease that sportspark to Mr. Ronald and Rick Odekirk of approximately 22 acres on the southeast corner of Cook Street and Gerald Ford. The terms of the agreement is for a period of 30 years. That 30-year provision would start after the completion of the improvements. After those 30 years, the park facility would revert back to the Redevelopment Agency. An aspect of those agreements is that we must review and approve all final plans and specifications. There needs to be a delivery of evidence by the tenant that there are sufficient funds set aside for startup operating expenses as shown in a budget that has been reviewed and approved by the Agency, and this would be subject to be accomplished by April 13 of 1996. There needs to be a delivery by the tenant of the initial deposit of their startup funds needed to begin the construction process for the development of the sportspark, which would need to be submitted by the developer by January 31 st of 1996. There is a minimum monthly rent with a 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * percentage of gross revenues incorporated within that. The Agency has the right to audit and review the books of the venture to determine whether those revenues are in there. Provision for the assignment of lease with the approval of the Agency are incorporated within the agreement. Section 6 of your resolution approving this identifies those aspects of the costs, which has been determined to meet the fair rental value of the property in accordance with an analysis that has been accomplished by Real Estate Analysis Services Company making that determination that this does indeed meet the fair market value and/or the fair reuse value of the lease. Some of the loan provisions that are incorporated within the agreement are that there is an applicable monthly interest rate based on gross revenues also, that there is a disbursement procedure that funds would be deposited with a disbursement service which would disburse all construction contract requirements, there would be a company that would oversee the disbursement service company, and these would all be paid for by the tenant. However, those contracts with the disbursement service and with the construction management would be with the Agency. Essentially, those are some of the basic elements of both the loan and the lease provisions. We would make a finding that these do meet within the terms that are before us of Section 33433. If there are any other questions with regard to the agreement, both Jeff Rabin and Leonard Wolk are here also to assist us in making any of those...answer any of those questions for you. WHS Questions by the Council? JMB The question I would have is that under the scope of development, I didn't see anything in there that says the amount of use that will be dedicated to Palm Desert residents or local play or that there would not be any rock concerts or anything like that out in it. DY JMB There is no provision in there for use of little leagues and things like that that would be for charitable organizations incorporated in that. We would need to, if we wanted to add that, we would need to sit down and talk to the tenant to determine what amount of time he's talking about using that for or those types of provisions. Essentially the same thing is with regard to rock concerts and things like that. I would think that we should have that in there because the community is assuming that there's going to be an awful lot of youth activities out there where it doesn't appear there is. I think the time element of how much they can use this park should be in there someplace. DY We certainly need to begin and sit down and talk to them with regard to those provisions. WHS (unclear) If not, this is a public hearing, so I therefore declare the public hearing open and will take testimony both for and against. LC Mr. Mayor and Members of the Council, my name is Lynn Crandall, office in Palm Desert. I'm here representing the developer this evening with a request that the matter be continued. I'm...what Mr. Ortega said went over my head in terms of...he said something about a continuance as well. The reason I wanted the continuance is as Mr. Ortega related, when I 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * reviewed the final draft of the agreement this week, there was a provision in it relating to one of the two items that he's talked about, the assignment and subletting provisions and the sharing of revenues, if you will, in those circumstances, which I deem to be ambiguous, it was ambiguous. I brought it to the attention, through my clients, to Mr. Diaz and Mr. Ortega, and I believe they agreed with me that it was an ambiguous provision. That's why there's been a change as Mr. Ortega's just related it. I have not had a chance to see the revised change at all, and I would like that opportunity. These sorts of provisions are important, they go far years into the future, they're permanent, they're frozen now, and the only thing I'm confused about is the...because he said something about a continuance, if I understood you, Mr. Ortega. CLO That's correct. LC The public hearing will remain open next time so I can address the provision? We could also address, I suppose, the provisions that Councilman Benson just mentioned, and we can do that in the meantime as well. CLO You can keep it open if you wish. LC Obviously, I need to look at the provision that's been redrafted by your attorney. I'm talking about a continuance just till the next meeting. DJE Certainly the Council can do that, or Agency can do that if you wish. WHS Continue the meeting and keep the... DJE ...the hearing open if you wish, yes. WHS ...public hearing open. DJE Yes. WHS If the Council so desires. DJE If they do. BAC You also have the option of closing the public hearing. DJE That's correct and still allowing, if you wish, Mr. Crandall to address the language in the ultimate agreement whether the hearing is open or not. WHS Does the Council wish to take a position on the request for continuation? RSK Why don't we have the public hearing? 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * s * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * WHS We're in the public hearing now. (unclear) if anybody else. CLO The purpose of the public hearing is for the public to talk about the lease and to talk about the business points specifically under provisions of the Health and Safety Code, whether the lease terms are appropriate, whether they meet the...whether the Agency is getting the fair market value or the reuse value for the property. That's essentially the purpose of the hearing, and I suppose they can also discuss other issues of the location because you are also approving a lease for a specific site. WHS Indeed, I have declared the public hearing open, and I've asked for testimony. You were the first. Does anyone else care to testify? Now is the time. AHE Mr. Mayor, Members of the City Council, I'm Arnold H. Einbinder, Retired Judge, living at 549 Desert Falls Drive East, Palm Desert, California. I'm a little confused in the sense that my understanding from staff is there are amendments to an agreement which for all intents and purposes has not been distributed or made available to the general public. Is that correct? CLO That is correct. AHE Okay. DY We have publicized this notice, and the notice indicates that the report pursuant to our obligations under the Health and Safety Code have been available for public review. AHE That was not my question. I have a copy of the agreement I thought was "the agreement". I'm just informed today that there are amendments to this agreement. My question is reiterated. Is this...these amendments that have not been provided to the general public for review, if nothing else? CLO AHE That is correct, and that's one of the reasons why I have brought up those proposed amendments as part of the public hearing process so that the public is aware of those amendments. Then, that being the case, I would respectfully request that the request of Council be adhered to in that the entire open public meeting be continued to a date certain, giving an opportunity for anyone who would want to speak for or against to obtain a copy of or at least view a copy of these amendments to the agreement. Now, if that is not going to be the case, then I will certainly entertain the wish of the Council in my words or presentation. WHS I think it's the intention of the Council to continue, but I did indeed open the public hearing. If there is any other testimony that needs to be taken, I want to take it. AHE Are you advising that... 10 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * *-* * * * * * * * * * * * * * * • WHS We will make that decision at the completion of the... AHE Can I...excuse me, I'm sorry, Mr. Snyder. Please continue. I didn't mean to interrupt. WHS We'll make that decision at the conclusion of any other testifying that we take. AHE Well, is that meaning to say that you are requiring me to make any statements I want to now... WHS No. AHE ...and not allowing me to defer them, or can I defer them until the next public hearing that is to be held in this matter? DJE What I might suggest, Mr. Mayor/Chairman, Judge Einbinder has in effect requested the opportunity to address the issue if you're going to close the public hearing. I think maybe the Council has not arrived at that decision yet. I suggest that you allow him to reserve that opportunity to speak if the Council should determine to close this hearing tonight, that he be allowed to speak if you're going to do that. If you ultimately after hearing other people that may be present decide to continue the hearing open, then he may appear at the next meeting and make his presentation at that time. WHS Thank you. _ DJE I think perhaps we can see if anybody else wishes to speak... WHS Does that satisfy you? AHE Yes. Thank you very much. WHS Anybody else who would care to testify in this matter? MP Happy New Year and greetings to all of you. I'm Marlene Paisokopf, and I also would like to second the request that you've just heard from Judge Einbinder, and I too would prefer to speak at such a time after all the information is disbursed to the general public. And, therefore, I would go along with that request and would also ask that if for some reason you do not honor that request, then I would like to speak later. Thank you. WHSAnyone else who would care to testify? I would suggest that, seeing no one else, I would suggest that this Council consider keeping this public hearing open and continuing the matter to... when? CLO The 25th. 11 MINUTES PALM DESERT REDEVELOPMENT AGENCY Ivir.r.,iniG JANUARY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * WHS 25th? DJE January 25? CLO Right. WHS January 25. Could I have a motion to that effect? RSK I'll move that we continue this item to January 25th and keep the public hearing open. WHS Do I have a second? I'll second it. Would you please vote. SRG Motion carries by unanimous vote. Councilman/Member Kelly moved to continue this matter to the meeting of January 25, 1996. Motion was seconded by Snyder and carried by unanimous vote. XIII. ORAL COMMUNICATIONS None XIV. ADJOURNMENT Member Crites moved to adjourn the meeting at 7:35 p.m. Motion was seconded by Snyder and carried by unanimous vote. AITEST: ,,,e, SHEILA R-6fIt.IGAN, S ARY TO THE PALM DESERT REDS PMENT AGENCY WALTER H. SNYDER, CHA 12