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HomeMy WebLinkAbout1996-10-24MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, OCTOBER 24, 1996 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Snyder convened the meeting at 4:00 p.m. H. PLEDGE OF ALLEGIANCE -Councilman Robert A. Spiegel III. INVOCATION - Councilmember Jean M. Benson IV. ROLL CALL Present Member Jean M. Benson Member Buford A. Crites Vice Chairman Richard S. Kelly Member Robert A. Spiegel Chairman Walter H. Snyder Also Present: Carlos L. Ortega, Redevelopment Agency Executive Director Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Agency Secretary John Wohlmuth, ACM/Director of Administrative Services Richard J. Folkers, ACM/Director of Public Works Pat Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul Gibson, City Treasurer/Finance Director Mary P. Gates, Deputy City Clerk V. ORAL COMMUNICATIONS None VI. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of October 10, 1996. Rec: Approve as presented. MINUTES - PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant No. 26. Rec: Approve as presented. C. SCHEDULE OF INVESTMENTS as of September 30, 1996. Rec: Receive and file. D. CONSIDERATION OF REOUEST by Paul Murphy for Use of Public land for Christmas Tree Lot. Rec: By Minute Motion, approve the lease of the lot at the southeast corner of Portola and Highway 111 to Paul Murphy subject to conditions set forth in the staff report. E. FINANCIAL STATEMENTS from Parkview Professional Office Buildings for the Periods Ending July 31, 1996, and August 31, 1996. This item was removed from the Agenda for separate discussion under Section VIII, Consent Items Held Over, of the Agenda. Please see that section for Council discussion and action. Member Spiegel asked that Item E be removed for separate discussion under Section VIII, Consent Items Held Over. Upon motion by Crites, second by Spiegel, the remainder of the Consent Calendar was approved as presented by unanimous vote of the Agency Board. VII. RESOLUTIONS None VIII. CONSENT ITEMS HELD OVER E. FINANCIAL STATEMENTS from Parkview Professional Office Buildings for the Periods Ending July 31, 1996, and August 31, 1996. Councilman Spiegel expressed concern that although there were a lot of figures in these statements, it was difficult to determine whether or not the buildings were making money. Mr. Ortega responded that based on operating revenues versus expenses, the project was making money. He noted that the report in the packets included information through August 31, 1996; however, staff had just received a September 30, 1996, statement. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Redevelopment Manager David Yrigoyen reviewed the September 30th statement, noting gross receipts of $641,000, expenses of $220,000, and operating income of $421,000. He offered to answer any questions. Upon question by Member Spiegel relative to whether there were plans to put together a monthly budget to determine income and expenses, Mr. Yrigoyen responded that Mason and Mason, the management firm, had accomplished a line item budget which outlines the gross income, expenses, and net income on a monthly basis. Member Spiegel moved to receive and file the financial statements. Motion was seconded by Crites and carried by unanimous vote. IX. NEW BUSINESS A. REOUEST FOR AWARD OF CONTRACT FOR DESIGN AND CONSTRUCTION OF THE MAINTENANCE FACILITY FOR THE DESERT WILLOW GOLF COURSE (Contract No. R12010). Mr. Ortega noted that this had gone before the Desert Willow Committee, which included two Agency Board members. Project Administrator Rudy Acosta reviewed the staff report and evaluation process. Upon question by Member Kelly relative to employee parking, he stated that all parking for employees was required to be on site. He added that there was an error in the staff report and that the recommended stipend should be $2,000 each instead of $1,500 each. He stated that this stipend would be a token of appreciation for the hard work each of the teams put forth and said that approximately $4,000 worth of work goes into putting together a proposal. Member Spiegel asked whether the recommendation from the Architectural Review Commission was unanimous for approval. Mr. Acosta responded that it was unanimous, except that Mr. Frank Urrutia abstained from voting because his was one of the competing firms. Member Crites asked whether this had gone to the Art -In -Public -Places Committee for input in terms of how we might, if there are any parts that will be visible to the general public, incorporate art features. Mr. Acosta responded that it had been discussed with that committee at an early stage when the contract was let out; however, the response was that the committee did not see this facility as one of their priorities for the budgeted amounts. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Spiegel moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with the design -build team of Simon Company/McFadden-McIntosh of Indio and Palm Desert, respectively, for the design and construction of the Desert Willow maintenance facility in an amount not to exceed $1,000,000; 2) authorize the payment of the $2,000 stipend to each of the three non -successful teams; 3) appropriate the contract amount from Account No. 851-4663-454-4001. Motion was seconded by Kelly and carried by unanimous vote. B. REOUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE PERIMETER WALL AT THE DESERT WILLOW NORTH COURSE (Contract No. R11550). Mr. Acosta reviewed the staff report, noting that five bids had been received. He offered to answer any questions. Upon question by Member Spiegel with regard to the art work, he stated that $180,000 had been allocated for art as a separate contract. Member Spiegel stated that this would then be a $1 million wall, and Mr. Acosta responded that it would but that it covered approximately a mile and a half of linear feet, which is the market rate for walls of this type. Member Kelly questioned the corner of Frank Sinatra and Portola and asked whether people stopped at that intersection would be able to look down that fairway. Mr. Acosta responded that staff was working on revised elevations for that corner to allow a view opportunity from that intersection. He added that those sketches would be presented to the Desert Willow Committee. Member Kelly moved to, by Minute Motion: 1) Authorize the Chairman to enter into an agreement with J.T. Dunphy Construction, Palm Springs, in the amount of $873,376.70 and authorize a ten percent contingency in the amount of $87,337.67 for the construction of the perimeter wall at the North Course of the Desert Willow project; 2) appropriate the contract amount from Account No. 851-4663-454-4001. Motion was seconded by Crites and carried by unanimous vote. C. REOUEST FOR RATIFICATION OF STAFF ACTIONS IN THE EXECUTION OF CERTAIN BOND DOCUMENTS RELATIVE TO DESERT ROSE PROJECT REFUNDING. Mr. Ortega reviewed the staff report, noting that this same report had been presented to the Investment/Finance Committee. Member Benson moved to, by Minute Motion, ratify staff actions in executing documents with Wells Fargo Bank to reduce the annual letter of credit fees and to reimburse the Bank for legal and other fees not to exceed $40,000. Motion was seconded by Spiegel and carried by unanimous vote. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. CONSIDERATION OF AGENCY PAYMENT FOR COST OF PUBLIC IMPROVEMENTS. Mr. Ortega reviewed the staff report and offered to answer any questions. Member Spiegel moved to waive further reading and adopt Resolution No. 331, making findings pursuant to Health and Safety Code Section 33445 in connection with the payment by the Palm Desert Redevelopment Agency for all or part of the cost of the installation and construction of public improvements owned by the Riverside County Superintendent of School District ("District"). Motion was seconded by Benson and carried by unanimous vote. E. REOUEST FOR RATIFICATION OF DESERT WILLOW COMMITTEE RECOMMENDATION WITH REGARD TO KEY EMPLOYEES UNDER THE MANAGEMENT AGREEMENT WITH KEMPER SPORTS MANAGEMENT. Mr. Ortega reviewed the staff report, noting that there was a requirement in the agreement with Kemper that the Agency would have certain say-so with regard to not only the budget but key employees that will run the resort. He added that the Desert Willow Committee recommended the following key employees: Mr. Gregg Lindquist as General Manager, Ms. Piper Close as the Marketing Director, and Mr. Raul Lerma as the Assistant Superintendent. Member Spiegel asked whether this was only for the City course at this point in time, and Mr. Ortega responded that it was. Mr. Yrigoyen introduced Mr. Lindquist and Ms. Piper Close to the Agency Board. Member Spiegel moved to, by Minute Motion, ratify the Desert Willow Committee's recommendation regarding the Key Employees under the Management Agreement with Kemper Sports Management, identifying Mr. Gregg Lindquist as General Manager, Ms. Piper Close as the Marketing Director, and Mr. Raul Lerma as the Assistant Superintendent for the Desert Willow Golf Course. Motion was seconded by Kelly and carried by unanimous vote. X. CONTINUED BUSINESS A. CONSIDERATION OF PROPERTY MANAGEMENT AGREEMENT FOR PARKVIEW BUILDINGS (Continued from the Meetings of September 12, September 26, and October 10, 1996). Mr. Ortega noted the report in the packets, and Mr. Yrigoyen reviewed same for the Agency. Member Crites stated that the RFP asked people to do a flat fee, but the City accepted some RFP's that did not do that. Mr. Yrigoyen responded that only one RFP submitted a flat fee. Member Crites asked whether staff had gone back to that firm that submitted the flat fee and given them the option of submitting it a different way, and Mr. Yrigoyen responded that this had not been done. He added that if the Agency Board wished, staff could go do this; 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * however, staffs intent was to analyze what was submitted at this point in time. Member Crites said he felt all the applicants should have an equal opportunity to submit bids the same way. Mr. Yrigoyen stated that staff would have no objection to this. Member Spiegel asked if staff could go to the other bidders and ask them to submit proposals with the monthly fee structure as requested, and he said this was the opposite of what Member Crites had suggested. Member Benson stated she had noticed in the staff report showing the reasonable fees, the analysis used by staff showed a $17,372 difference when in reality there was only a $9,962 difference, and she said she felt this was quite a bit. Mr. Yrigoyen responded that this was correct. He said staff looked at the analysis of the base revenues we had received in September and August and did an average on those. That was not the real number, which was based on the gross revenues from an audited financial statement from the accountant. Member Benson stated that with Mason and Mason there was a dedicated employee, and there would not be one for Rutherford. She asked what would be the response time or how staff would keep track of how long it takes them to respond to tenant complaints. Mr. Yrigoyen responded that staff would have to make sure that happens and be on top of the situation. He added that his conversation with the tenants in Indio indicated that this company was responsive. Chairman Snyder stated that there were issues that needed to be looked at further with regard to award of this contract, and he suggested that the matter be continued. Mr. Yrigoyen asked whether the Agency Board wished for staff to go back to the proposers and request submittals in line with the RFP as requested. Member Spiegel suggested that staff decide whether it wants to go with the flat fee or percentage and then the proposers would have to go that way. Member Kelly stated he felt the Agency Board would not want to have a flat fee, and if that is the case, staff should not go back and have all of the proposers submit a flat fee proposal. Mr. Ortega stated that staff would determine which method it wishes to use. In the meantime, he asked that the Agency Board extend the current Mason and Mason contract for two months. Member Spiegel moved to continue this matter for two months and to extend the current contract with Mason and Mason for two months. Motion was seconded by Crites and carried by unanimous vote. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XI. OLD BUSINESS A. REOUEST FOR APPROVAL OF DESERT WILLOW RESORT COURSE PROJECT DESIGN CONTRACT AMENDMENTS. Mr. Ortega noted that although the Agenda indicated an oral report would be given at the meeting, the Agency Board had been provided with a copy of a staff report and recommendation. He stated that the Agency Board had considered this item at a previous meeting and requested that staff go back to the Committee and ask it to relook at this item to make sure this is what it will continue to recommend. In addition, staff was directed to go back to Intrawest and discuss their ability to share in some of the costs. He noted the report and stated that a letter was attached to it from Intrawest relative to how much money they would be willing to reimburse the Agency if it went forward with the recommendation in the report. Member Spiegel stated that his understanding was that what was being suggested by staff was that if the resort course being considered by Intrawest falls apart, it will cost the City $276,000. Mr. Acosta responded that this was correct. He stated that staff worked to demonstrate in the staff report the stronger rationale requested by the Agency Board at its last meeting. Staff also had further discussion at the Desert Willow Committee meeting, and included in the body of the staff report was a list of the items discussed at that meeting. In response to Member Spiegel's statement, Member Crites stated that the Committee spent about two hours looking at this matter. He said one of the questions put forward by Dave Tschopp of the Desert Willow Committee was that if we spend this money and the Intrawest thing does not happen, how much of this would be lost revenue. That was debated back and forth, and it was the general conclusion that of that $276,000, there was a 50/50 chance that none of it would be "lost" because those were changes that would have to be made for whoever came in. He said in the worst case perhaps 20% of the $276,000 would have been expenditures that we would have had to undo and redo. He added that at least 80% were things we would have to do no matter who comes to be part of this project. The end result was that there was one negative vote to this recommendation and that Cindy Finerty still was not comfortable that it was enough of a split. The rest of the people were supportive of this set of expenditures for the listed purposes. Mr. Acosta responded that this corresponded to the list of five items discussed in terms of the reusable work to be performed. Member Spiegel stated that the concerns he had voiced two weeks ago really had not changed. He said there was not a total agreement with Intrawest based on what the City requires for building time shares, etc. He said he had been out to the new public course for citizens twice, and he could not be happier with it or more proud of it and the people who 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * are doing it, but he felt to invest $250,000 at this point and rush into something really did not have to be done now. He said he was not willing to vote for it. If the whole thing falls apart, that beautiful piece of land could stay vacant for five years. It is right across from the Marriott and near the interchanges, and it might be developed in a completely different way. He said the City could decide that it makes sense to sell it and build beautiful homes. Member Kelly stated that input from the rest of the Committee was very positive, and everyone felt it was the right thing to do, even with all the comments made by Member Spiegel. He said it was felt the money would not be a loss to us because we would have to do that work somewhere down the line. The project would bring in many people as potential shoppers and restaurant eaters, and this was the kind of project that would cause stores and businesses to be retained in the City. With all of the consideration and the benefits if the project works out, the Committee felt it was well worth the investment, and he personally felt it was the right thing to do. Member Benson stated she also felt it was premature and was not willing to commit that money. She said she would not vote for it. Member Crites moved to, by Minute Motion: 1) Authorize amending the professional services contracts of the following design consultants for related work to be performed on the Resort Course for work performed to December 12, 1996, in the following "not to exceed short-term expenses by December 12, 1996" amounts: a) Golf Dimensions, Contract No. R10400, $195,000; b) Mainiero-Smith Associates, Contract No. R10810, $50,000; c) Horton-Shepardson Associates, Contract No. R10490, $45,000; d) ASL, Contract No. R10520, $25,000; e) Lake Engineer, $40,000; f) Electrical Engineer, $6,000; and g) Reimbursables, $15,000; 2) condition that Intrawest agrees to indemnify the Redevelopment Agency for expenses incurred (to December 12, 1996) in the amount of $100,000 (as per letter of September 26, 1996); 3) accept Intrawest's response to the Committee in writing to the Executive Director that it will pay up to $72,000 for design revisions to the Golf Course construction documents as a result of their project. Motion was seconded by Snyder and carried by a 3-2 vote, with Members Benson and Spiegel voting NO. XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the items listed on the Agenda under Closed Session as well as the following additional item for Closed Session listed on an Agenda Addendum posted 72 hours prior to this meeting: Conference with Legal Counsel - Existing Litigation pursuant to Section 54956.9(a): Names of Parties: City of Orange, et al. v. Alabama Treasury Advisory Program, et al. Case or Claim Numbers: Superior Court of the State of California for the County of Los Angeles, Case No. BC106461 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. AGENCY COUNSEL Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Southern half of Section Four Negotiating Parties: Agency: Carlos Ortega/Dave Yrigoyen Property Owner: Palm Desert Redevelopment Agency Other party: Intrawest Resorts, Inc. Under negotiation: x Price x Terms of Payment 2) Property: Land generally located between Portola, Monterey, Frank Sinatra, and Gerald Ford Negotiating Parties: Agency: Carlos Ortega/Dave Yrigoyen Property Owner: Federal Deposit Insurance Company Under negotiation: x Price x Terms of Payment C. CHAIRMAN AND MEMBERS OF THE AGENCY None XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XIV. PUBLIC HEARINGS None XV. ORAL COMMUNICATIONS None 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 24, 1996 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XVI. ADJOURNMENT Member Crites moved to adjourn the meeting to Closed Session at 4:50 p.m., said Closed Session to be held immediately following the City Council meeting. Motion was seconded by Spiegel and carried by unanimous vote. Chairman Snyder reconvened the meeting at 7:35 p.m. and immediately adjourned with no action announced from Closed Session. ATTEST: n , ele SHEILA R: LIGAN ARY TO THE PALM DESERT RED OPMENT AGENCY WALTER H. SNYDER, CHtMAN 10