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HomeMy WebLinkAbout1996-07-11MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JULY 11, 1996 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Snyder convened the meeting at 5:25 p.m. H. ROLL CALL Present: Excused Absence: Vice Chairman Richard S. Kelly Member Jean M. Benson Member Robert A. Spiegel Member Buford A. Crites Chairman Walter H. Snyder Also Present: David Yrigoyen, Acting Redevelopment Agency Executive Director Ramon A. Diaz, 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 Phil Drell, Director of Community Development Agnes Flor, Acting Finance Director Wayne Ramsey, Director of Code Compliance Paul Shillcock, Economic Development Manager Teresa LaRocca, Housing Programs Coordinator Mary P. Gates, Deputy City Clerk III. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR A. MINUTES of the Regular Meetings of the Redevelopment Agency of June 13 and June 27, 1996. Rec: Approve as presented. MINUTES - - PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 55 and 56. Rec: Approve as presented. C. REOUEST FOR EXTENSION of Contract for Consultant Services with Lynn and Associates (Contract No. R10651). Rec: Removed for separate discussion under Section VI, Consent Items Held Over. See that section of the Minutes for Agency Board discussion and action. D. REOUEST FOR CONSIDERATION of Activities Included in Contract No. R10651 with Lynn and Associates. Rec: By Minute Motion, authorize Lynn and Associates of Palm Desert to subcontract for specific services under the existing contract. E. REOUEST FOR AWARD OF CONTRACT for Golf Course Irrigation Design Services at the North Course of the "Desert Willow" Project (Contract No. R11520). Rec: Removed for separate discussion under Section VI, Consent Items Held Over. See that section of the Minutes for Agency Board discussion and action. F. REOUEST FOR AWARD OF CONTRACT for Engineering Services at Temporary Clubhouse Site for the "Desert Willow" Project (Contract No. R11530). Rec: By Minute Motion: 1) Authorize the Chairman to enter into an agreement with Watson & Christiansen Engineering, La Quinta, for civil engineering services on the temporary clubhouse at the "Desert Willow" project in the amount of $9,660.00 and authorize a ten percent contingency in the amount of $966.00; 2) appropriate said funds from Account No. 851-4663-454-4001. G. REOUEST FOR APPROVAL of Renewal of Agreement between the Redevelopment Agency and REASCO for Consultant Services (Contract No. R09012). Rec: By Minute Motion, approve the agreement with REASCO to provide consultant services on an as -needed basis in accordance with the agreement attached to the staff report and appropriate $61,604.00 for a 12-month contract with the consultant. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * H. REOUEST FOR AWARD OF CONTRACT for Marketing Services on the North Course of the Desert Willow Project (Contract No. R11540). Rec: Removed for separate discussion under Section VI, Consent Items Held Over. See that section of the Minutes for Agency Board discussion and action. I. REOUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Construction of the Perimeter Wall at the Desert Willow North Golf Course (Contract No. R11550). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the construction of the perimeter wall at the North Course of the Desert Willow project. J. REOUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Temporary Clubhouse Facilities at the North Course of the Desert Willow Project (Contract No. R11560). Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the construction of the temporary clubhouse facilities at the Desert Willow project. K. REOUEST FOR APPROVAL of Continuation of Contract for Services with the Desert Community College District Auxiliary Services (dba Regional Business Assistance Center) - Contract No. R10341. Rec: By Minute Motion: 1) Approve the continuation of Contract No. R10341 between the Agency and the Desert Community College District Auxiliary Services (dba Regional Business Assistance Center); 2) amend the contract by adding $45,000 from Account No. 850-4195-466-3092 for Fiscal Year 1996-97 and amending the scope of work to reflect ongoing efforts. Member Spiegel asked that Items C, E, and H be removed for separate discussion under Section VI, Consent Items Held Over, of the Agenda. Upon motion by Spiegel, second by Kelly, the remainder of the Consent Calendar was approved as presented by unanimous vote of the Agency Board. V. RESOLUTIONS None 3 NDNUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VI. CONSENT ITEMS HELD OVER C. REOUEST FOR EXTENSION of Contract for Consultant Services with Lynn and Associates (Contract No. R10651). Member Spiegel asked what this firm had accomplished so far. Mr. Shillcock stated that a number of different reports had been completed, but most of the work was in reviewing documents and identification of potential industries and attracting those industries to the Coachella Valley. He said we were actually close to getting several of those industries here. Member Spiegel moved to, by Minute Motion, extend Contract No. Rt 10651 with Lynn and Associates to cover the time period of July 1, 1996, through June 30, 1997, in an amount not to exceed $30,000 from Account No. 850-4195-466-3092. Motion was seconded by Kelly and carried by unanimous vote. E. REQUEST FOR AWARD OF CONTRACT for Golf Course Irrigation Design Services at the North Course of the "Desert Willow" Project (Contract No. R11520). Member Spiegel expressed concern with the fact that the Agency Board keeps getting new things to approve for the golf course after approving millions of dollars in other contracts. He asked whether staff knew we would have to have a contract for irrigation design and whether this went out for bid or if this is someone staff picked to do the design. Mr. Acosta stated that with regard to the irrigation design services for the golf course, Fairway Irrigation was a consultant to Michael Hurdzan Golf Course Designs. His contract was limited to basic design services for the two golf courses proposed to be built at Desert Willow. It did not include all of the comprehensive services in this contract, as he was unable to go to that length until we had assembled the entire design team, established the boundaries and limits, and entire vision and programming for the project. Member Spiegel stated it was very disconcerting to him to keep seeing the project's costs going up, and he said it was his impression when discussions were held relative to contracting with Golf Dimensions that because of their experience, they were by far the most viable choice in putting this whole project together. Mr. Acosta stated that although it may appear that way, this is actually part of a price within the entire budget that was approved. It is an expenditure that had been identified several months ago and is not an extra to the budget. Upon question by Member Spiegel, Mr. Yrigoyen responded that the Agency Board had approved a $9.6 million contract with a ten percent contingency for the construction of just the golf course (fairways, tees, etc.). 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Acosta added that there are several items that consultants have been working on that deal with the overall Desert Willow project. He said that we have the design to the ultimate facility for the Desert Willow project which involves a lot of considerations and accommodations for the ultimate buildout of the south course, the hotel pads, the timeshare pads, and the other properties that are all parts of what makes the whole project. Member Spiegel stated that he realized it needed to be done because you cannot have a golf course without irrigation; however, he said he objected to the way it keeps coming back. Member Spiegel moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with Fairway Irrigation Design, Palm Desert, for golf course irrigation design services in the amount of $49,500.00 and authorize a ten percent contingency in the amount of $4,950.00; 2) appropriate the funds from Account No. 851-4663-454-4001. Member Kelly seconded the motion and commended staff for the smoothest and best run groundbreaking earlier that day that he had seen since being elected to the Council. Motion carried by unanimous vote. H. REOUEST FOR AWARD OF CONTRACT for Marketing Services on the North Course of the Desert Willow Project (Contract No. R11540). Member Spiegel asked whether this issue had been before the Promotion Committee for approval. Mr. Acosta responded that it had not yet been to the Promotion Committee but that it was on the Agenda for its meeting next Tuesday. Member Kelly stated he should have pulled this item off the Consent Calendar to stipulate that staff wants this to move ahead but realizes it needs to go to the Promotion Committee. He said there is a committee specifically working with the golf course, and this committee would like to be the one that directs the promotion and ties it in with the whole golf course. He added that it would be taken to the Promotion Committee to be sure nothing is being done that is out of bounds. Member Spiegel moved to, by Minute Motion and provided it is approved by the Promotion Committee, authorize the Chairman to enter into an agreement with VIP Golf Services, Palm Desert, for marketing consultant services not to exceed the following amounts: 1) Marketing consultant services at $4,000.00; 2) marketing implementation services at $12,000.00 ($4,000.00 per three month minimum). Motion was seconded by Kelly and carried by unanimous vote. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VII. NEW BUSINESS A. REOUEST FOR CONSIDERATION OF SANTA ROSA APARTMENTS REHABILITATION PROPOSALS. Mr. Yrigoyen noted the report in the packets and stated that Ms. Teresa LaRocca was available to answer any questions. Member Spiegel moved to, by Minute Motion: 1) Award the project to Southern California Housing Development Corporation; 2) donate the property at 73-625 Santa Rosa Way as part of the Agency's contribution; 3) award a grant in an amount not to exceed $136,000, reduced by the amount of the Riverside County Home Fund Grant awarded to the developer; 4) direct staff to prepare a Disposition and Development Agreement (Contract No. R 11570) to incorporate the contribution of the property by the Agency and a grant in an amount not to exceed $136,000, reduced by the amount of Home Funds awarded to the Developer, for review and consideration by the Agency. Motion was seconded by Kelly and carried by unanimous vote. B. REOUEST FOR APPROVAL OF AMENDMENT TO GOLF DIMENSIONS CONTRACT NO. R10041. Mr. Yrigoyen noted the report in the packet as well as the scope of services, and he offered to answer any questions. Member Spiegel expressed concern that this is a 36 % increase over what was originally approved. He said he felt more than just the three Agency Board members should be in attendance to vote on something like this and that he would not vote for it at this time. He also asked that staff provide him with a Return on Investment report for this golf course. Mr. Yrigoyen stated that the $18 million benchmark was established pursuant to a lot of discussions with the original development company, Palm Desert Golf Partners. In those discussions, the estimated benchmark they developed was not based on design development documents but rather identification of things that were very conceptual. As the process has moved along, staff has begun to see that in the specific development of design documents the $18 million benchmark was really not something that was feasible; however, that benchmark was negotiated with Golf Dimensions at the time based on that previous figure. Staff did foresee that the $24.5 million benchmark is a more realistic benchmark based on the development. Member Spiegel stated that Golf Dimensions was proposed as a group that really knew what was going on, and that is why we did not look at some of the other people who wanted to get involved with it. He said he agreed with it at that time but now was concerned with the fact that no consultants were assigned to various responsibilities as indicated on page 2 of the report, including site inspection/quality control, coordination of project construction managers, contractor payment management, contractor change order request, schedule 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * compliance, budget oversight/cost control, as -built documentation file maintenance, environmental compliance, dust control monitoring, coordination between Golf Course contractor and Golf Course architect, weekly construction meetings, contractor request for information processing, contractor submittal reviews and coordination, safety representative, irrigation well installation, pump station installation, and pre -water implementation. He asked whether any of these things were discussed with Golf Dimensions. Mr. Yrigoyen stated that Golf Dimensions was selected through a competitive process where other development companies were looked at, and this firm was selected as the best qualified firm. The reason the items listed in the staff report were left out is because they are basically things that a construction manager and a coordinator of the entire site would do. Discussions were held with the golf course architect relative to how the contract should be run, and the architect made a request that he be allowed to proceed with the development of the site. Because of the expertise they had in the shaping, grading, etc., staff looked at that, took it to the committee for review, and the golf course architect indicated that all areas would be covered. The architect also indicated that several of the areas that needed coordination were not an aspect of what they had been talking about, and some of the paperwork that was required to be processed pursuant to government regulations was not an aspect of it since that was not their expertise. He said the transition coordination between the golf course architect and the construction manager for the wall site was not an item that could be looked at. He said Golf Dimensions did see the problems, and they were asked what they saw as the voids in what the golf course architect was recommending. Golf Dimensions indicated the voids as outlined in the staff report. Member Spiegel said his concern was that staff keep the Agency Board informed. He added that until he finds out what the return on the investment of the City is, and in the meantime he said he would not vote for this. Mr. Acosta added that the $18 million benchmark was set for the City to negotiate a contract for all the services that Golf Dimensions was being requested to fill at that time. Since that time, the project has been further refined and added to it real value numbers based on items that also include the south course. He said that in defense of Golf Dimensions, they did inform staff of this. Councilman Kelly suggested that perhaps staff should brief the Agency Board once a month as this project moves along so that everyone has an idea of what is happening. Mr. Yrigoyen responded that staff would do so. 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly moved to, by Minute Motion, approve the amendment of the Golf Dimensions contract (No. R10041) as follows: 1) Amend the benchmark amount for the development of the Desert Willow project from $18 million to $24.5 million; 2) authorize the appropriation of $258,000 from the Agency's Unobligated Funds for the additional services to provide transition from development to operational services of the Golf Course, consisting of $223,000 as additional services and $35,000 for reimbursable expenses. Motion was seconded by Snyder and carried by a 2-1 vote with Member Spiegel voting NO. Mr. Erwin noted that the Redevelopment Agency did not need three affirmative votes to approve the expenditure of funds as the City Council does. C. REOUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION MANAGEMENT SERVICES AT THE "DESERT WILLOW" PROJECT (Contract No. R11580). Mr. Acosta reviewed the staff report, noting this was to bring on board a construction manager to handle the civil engineering portions of the Desert Willow project. This would include responsibilities for carrying out construction management of the perimeter wall, the perimeter streetscapes, the reclaimed water facility, the temporary clubhouse facilities, and the comfort stations, with an option to exercise at a later date when the entry road is completed, the construction management of the installation of the entry road. He stated that a subcommittee of the Desert Willow committee reviewed submittals and qualifications from interested construction management firms and narrowed the list down to Allan Levin Associates and Betty Williams. Recognizing the different qualities in both firms, proposals were solicited from both firms, and Levin & Associates came at approximately $16,000 below Williams Development Company. The committee that because of Mr. Levin's expansive experience with the Sunrise Company and the multiple developments they have built in Palm Desert and surrounding cities he was the most qualified to serve as construction manager for these projects. Member Kelly moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with Allan Levin Associates of Palm Desert for construction management services at the "Desert Willow" project in the amount of $164,000.00 and authorize a ten percent contingency in the amount of $16,400.00; 2) appropriate contract amount from Account No. 851-4663-454-4001. Motion was seconded by Spiegel and carried by unanimous vote. VIE. CONTINUED BUSINESS A. REOUEST FOR CONSIDERATION OF BLYTHE COUNTY ADMINISTRATIVE CENTER FINANCING (Continued from the Meetings of June 27 and July 3, 1996) JOINT ITEM WITH THE PALM DESERT FINANCING AUTHORITY Mr. Erwin noted that at the Adjourned City Council/Redevelopment Agency/Financing Authority meeting of July 3, 1996, there was a vote of 2-1 by the Agency and Financing Authority to approve this request. At that time, he advised after the vote that three 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * affirmative votes were needed, and the matter was continued to this meeting. He said he was subsequently advised by Counsel for the Redevelopment Agency that the Agency and Financing Authority do not have the same rules as the City Council, and it is necessary to only have a majority of those members in attendance to approve the expenditure of funds; therefore, two affirmative votes was sufficient to approve the request, and no further action was necessary on this matter. He added that the Minutes of the July 3rd meeting should be corrected to reflect action as follows: Chairman/President Snyder moved to approve the following: 1) That the Financing Authority, by Minute Motion, approve the site lease, Lease Agreement (Contract No. R11420), Assignment Agreement (Contract No. RI1430), Indenture (Contract No. R11440), Implementation Agreement (Contract No. R11450), Purchase Contract (Contract No. R11460), and Preliminary Official Statement, and waive further reading and adopt Financing Authority Resolution No. FA-17 authorizing the issuance of its Lease Revenue Bonds; 2) that the Redevelopment Agency, by Minute Motion, approve the Implementation Agreement, waive further reading and adopt Redevelopment Agency Resolution No. 32$ approving the Implementation Agreement, and by Minute Motion, approve certain actions with regard to the transaction. Motion was seconded by Benson and carried by a 2-1 vote, with Member/Commissioner Kelly voting NO. IX. OLD BUSINESS A. REOUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE 2.8 MILLION GALLON RECLAIMED WATER RESERVOIR AT THE "DESERT WILLOW" PROJECT (Contract No. R11280). Mr. Acosta reviewed the staff report, noting the low bid was just below the budgeted amount. Member Kelly moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with Pacific Hydrotech of Perris, California, for the construction of the 2.8 million gallon reclaimed water reservoir in the amount of $516,400.00 and authorize a ten percent contingency in the amount of $51,640.00; 2) appropriate the contract amount from Account No. 851-4663-454-4001. Motion was seconded by Spiegel and carried by unanimous vote. B. REOUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE RECLAIMED WATER FORCE MAIN TO THE "DESERT WILLOW" PROJECT (Contract No. R11270). Mr. Acosta reviewed the staff report and offered to answer any questions. Upon question by Member Spiegel relative to whether the Agency will be getting any help on this from the Water District, Mr. Acosta responded that an agreement had been reached with the Coachella Valley Water District. Mr. Tim Palmquist of Golf Dimensions added that he and Carlos Ortega had met several times with representatives of the Coachella Valley Water District, including Mr. Tom Levy, and negotiated a credit of $565,000 that they will reimburse upon completion of these facilities, primarily going against the reclaimed water line. He said he had programmed out what the Desert Willow project will use in terms of 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * the reclaimed water and had done a conservative estimate of how much water that will use based on studies with Fairway Irrigation. As long as the project meets the reclaimed levels, which every indication shows will be done, there will be no payments back to CVWD. If the reclaimed water should drop substantially below what it is programmed out to be, we will have part of that capital contribution that CVWD is making to us to repay back to them on an annualized basis. Member Spiegel moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with Jones Brothers Construction Company of Coachella for the construction of the reclaimed water force main in the amount of $629,877.50 and authorize a ten percent contingency in the amount of $62,987.75; 2) appropriate the contract amount from Account No. 851-4663-454-4001. Motion was seconded by Kelly and carried by unanimous vote. X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Yrigoyen noted the items listed under Agency Counsel Reports and Remarks for Closed Session. B. AGENCY COUNSEL Request for Closed Session: Conference with real property negotiator pursuant to Section 54956.8: 1) 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 L. Ortega and Dave Yrigoyen Property Owner: Frank R. and Linda H. Swiniuch Under negotiation: x Price x Terms of payment 2) Property: Southern half of Section Four Negotiating Parties: Agency: Carlos L. Ortega/Dave Yrigoyen Property Owner: Palm Desert Redevelopment Agency Other Party: Intrawest Resorts, Inc. Under negotiation: x Price x Terms of payment 10 MINUTES PALM DESERT REDEVELOP/ r AGENCY MEETING JULY 11, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * *••:- * * * * * * * * * * C. CHAIRMAN AND MEMBERS OF THE AGENCY None XI. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XII. PUBLIC HEARINGS None XIII. ORAL COMMUNICATIONS None XIV. ADJOURNMENT Upon motion by Spiegel, second by Kelly, and unanimous vote of the Agency Board, Chairman Snyder adjourned the meeting at 6:10 p.m. to Closed Session, said Closed Session to immediately follow the Financing Authority meeting. He reconvened the meeting at 7:20 p.m. and immediately adjourned. ATTEST: SHEILA tgGILLIGAN, SECRETARY TO THE PALM DESERT REDEVELOPMENT AGENCY 11