HomeMy WebLinkAbout1997-05-22MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, MAY 22, 1997
CIVIC CENTER COUNCIL CHAMBER
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. CALL TO ORDER
Chairman Kelly convened the meeting at 4:00 p.m.
H. PLEDGE OF ALLEGIANCE - Mayor Pro Tempore Jean M. Benson
M. INVOCATION - Councilman Robert A. Spiegel
IV. ROLL CALL
Present:
_ Vice Chairman Jean M. Benson
Member Buford A. Crites (arrived at 7:00 p.m.)
Member Walter H. Snyder
Member Robert A. Spiegel
Chairman Richard S. Kelly
Also Present:
Carlos L. Ortega, 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
Paul Gibson, City Treasurer/Finance Director
Pat Conlon, Director of Building and Safety
Mary P. Gates, Deputy City Clerk
V. ORAL COMMUNICATIONS
None
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
VI. CONSENT CALENDAR
A. MINUTES of the Regular Meeting of the Redevelopment Agency of May 8, 1997.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 59DR,
59RDA, 60DR, and 6ORDA.
Rec: Approve as presented.
C. REQUEST FOR AUTHORIZATION to Record Grant Deeds for Right -of -Way on Cook Street,
Gerald Ford Drive, and Frank Sinatra Drive.
Rec: By Minute Motion, authorize the recordation of grant deeds for right-of-way on Cook
Street, Gerald Ford Drive, and Frank Sinatra Drive.
D. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Construction of
the Perimeter Landscape at Desert Willow (Contract No. R12780).
Rec: By Minute Motion, authorize the City Clerk to advertise and call for bids for the
installation of the Desert Willow perimeter landscape.
E. REQUEST FOR AUTHORIZATION to Advertise and Ca11 for Bids for the Construction of
the Resort Course at the "Desert Willow" Project (Contract No. R12790).
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.
F. REQUEST FOR RATIFICATION OF CONTRACT with Farm Irrigation Supply for Rental
of Irrigation Pipe at the "Desert Willow" Project (Contract No R12800).
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.
G. REQUEST FOR APPROVAL of Contract for Architectural Services for Santa Rosa
Apartments (Contract No. R12810).
Rec: By Minute Motion, approve a contract in the amount of $24,800.00 with Robert S.
Ritchey, Stoney Creek Design Studio (Palm Desert), for architectural services on the
rehabilitation of the Santa Rosa Apartments.
2
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
H. REQUEST FOR APPROVAL of Change Order No. 3 to Purchase Order No. 4500, Contract
No. R10810 (Mainiero-Smith and Associates) for Additional Engineering Services on the
Desert Willow Resort Course Project.
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.
I. REQUEST FOR APPROVAL of Amendment to Agreement No. C09240 for Advance and
Reimbursement of Administration and Overhead Expenses.
Rec: By Minute Motion, adjust an amended agreement for Advance and Reimbursement of
Administrative Overhead Expenses and to provide for Regional Economic Development
responsibilities of the Agency within the Project Areas.
J. REQUEST FORRATIFICATION of Contract with Graphic Arts for the Provision of Stone
Signage at the "Desert Willow" Project (Contract No R12820).
Rec: By Minute Motion, ratify the contract with Graphic Arts (of Santa Ana) in the amount
of $50,591.25 for the provision of the stone signage of the Desert Willow project and
authorize the appropriation of the balance owed on the project n the amount of
$24,791.25 (Contract No R12820J.
Member Spiegel asked that Items E, F, and H be removed for separate discussion under Section
VIII, Consent Items Held Over, of the Agenda.
Upon motion by Snyder, second by Spiegel, the remainder of the Consent Calendar was approved
as presented by a 4-0-1 vote of the Agency, with Member Crites ABSENT.
VII. RESOLUTIONS
A. RESOLUTION NO. 341- A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING AS TO FORM AND AUTHORIZING THE EXECUTIVE AND
DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION WITH THE SALE AND
ISSUANCE OF TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA
NO. 1, AS AMENDED), SERIES 1997, OF THE PALM DESERT FINANCING
AUTHORITY.
Mr. Ortega noted the report in the packets and offered to answer any questions.
Member Spiegel moved to waive further reading and adopt Resolution No. 341 Motion was
seconded by Benson and carried by a 4-0-1 vote, with Member Crites ABSENT.
3
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
VIII. CONSENT ITEMS HELD OVER
E. REQUEST FOR AUTHORIZATION to Advertise and Call for Bids for the Construction of
the Resort Course at the "Desert Willow" Project (Contract No R12790).
See Old Business Item A for discussion of this Consent Calendar item.
Member Snyder moved to, by Minute Motion, authorize the City Clerk to advertise and call for bids
for the construction of the Resort Course at the Desert Willow project, said authorization to be contingent
upon receipt of the $3.5 million deposit on June 5, 1997. Motion was seconded by Spiegel and carried by
a 3-1-1 vote, with Member Benson voting NO and Member Crites ABSENT.
F. REQUEST FOR RATIFICATION OF CONTRACT with Farm Irrigation Supply for Rental
of Irrigation Pipe at the "Desert Willow" Project (Contract No R12800).
Project Manager Rudy Acosta noted that this was separate from Items E and H and was not
contingent on the South Course. He said it dealt with dust control and water for the hotel pad
on the corner of Frank Sinatra and Cook Street as well as the conference center pad, and this
was the area that was seeded with barley for dust control.
Member Spiegel moved to, by Minute Motion, ratify the contract with Farm Irrigation Supply
($2,980.00 per month, with a three-month minimum) for the rental of irrigation pipe at the Desert Willow
project. Motion was seconded by Snyder and carried by a 4-0-1 vote, with Member Crites ABSENT.
H. REQUEST FOR APPROVAL of Change Order No. 3 to Purchase Order No. 4500, Contract
No. R10810 (Mainiero-Smith and Associates) for Additional Engineering Services on the
Desert Willow Resort Course Project.
See Old Business Item A for discussion of this Consent Calendar item.
Member Snyder moved to, by Minute Motion, approve Change Order No. 3 for additional
engineering services in the amount of $80,980.00 and authorize the appropriation of additional funds from
Account No. 851-4663-454-4001 to the base contract, said approval to be contingent upon receipt of the $3.5
million deposit on June 5, 1997. Motion was seconded by Spiegel and carried by a 3-1-1 vote, with Member
Benson voting NO and Member Crites ABSENT.
IX. NEW BUSINESS
None
4
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
A. REQUEST FOR APPROVAL OF AMENDMENT TO INTRAWEST RESORT OWNERSHIP
CORPORATION DISPOSITION DEVELOPMENT AGREEMENT.
Mr. Ortega noted the report in the packets. He stated there was a new schedule of performance
which added more payments to be made by the developer so that in the event they do not make
the deposit for the purchase of the land by the stated date, the Agency will be compensated.
Upon question by Member Spiegel relative to the Consent Calendar items removed for separate
discussion, he stated that if the Board approves this agreement there is a schedule of
performance which the Agency will have to live by and in order to meet this schedule, staff
would then request that the Board authorize those Consent Calendar items.
Member Spiegel asked what the date was for the City to receive the $3.5 million deposit from
Intrawest, and Mr. Ortega responded that the deposit was supposed to be made June 5, 1997.
Upon question by Member Benson, Mr. Ortega stated that the deposit was for the purchase of
the property, and the only way it would be refundable would be if the City could not give them
title to the property. He added that it was highly unlikely that the City would not be able to
deliver this title because the property is owned by the City free and clear. Member Benson
questioned the $750,000 deposit that the City currently has and asked whether this would be
nonrefundable if Intrawest does not come in with the $3.5 million on June 5th, and Mr. Ortega
responded that this was correct.
Member Spiegel asked whether the City has that money. Mr. Ortega responded that staff had
the check but that it was stale dated, and Intrawest requested it back. He stated that he had an
amendment to the recommendation for approval of the agreement and that it be approved with
the condition that the agreement be signed within one week after the Council approves it and
that the deposit be made within the same period. Once the Council has approved that
agreement and the deposit is made, then the next step Intrawest would have to do is make a
deposit for the $3.5 million minus the $750,000 on June 5th, and their failure to do that meant
the City would keep the $750,000. In addition, if Intrawest fails to close on August 5th, the
City would keep the $750,000.
Member Benson asked if this meant that the return of the $750,000 deposit would have to be
made within one week of this meeting. Mr. Ortega responded that Intrawest would have to
issue a new check because the original check had been sent back.
5
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Member Spiegel stated that he did not feel comfortable going out to contract on the South
Course of Desert Willow or spending an additional $80,000 for additional engineering services
for the Resort Course without having that $3.5 million.
Mr. Ortega stated that all the Board would be doing is authorizing staff to go out to bid;
however, the schedule of performance does not require staff to go out to bid until the deposit
is made. Therefore, staff would not go out to bid until some time after June 5th.
Member Spiegel asked if the approval could be contingent upon the City receiving the $3.5
million check, and Mr. Ortega agreed that this contingency could be added.
Project Manager Rudy Acosta addressed Consent Calendar Item E and stated that this dealt
with a time line that staff would try to meet based on the condition that the check is deposited.
He said this would correspond with staff making the attempt to meet the appropriate bid awards
in late August since there is only one scheduled meeting in August. With regard to Consent
Calendar Item F, he said this was separate and was not contingency upon the South Course.
He said this dealt with dust control and water for the hotel pad on the corner of Frank Sinatra
and Cook Street as well as the conference center pad, and this was the area that was seeded
with barley for dust control.
With regard to Consent Calendar Item H, Mr. Acosta noted that staff was originally trying to
approach award of the South Course of April 1. In order to do that, staff had to extract from
the golf course bid package the civil work that would be done to engineer the main entry road
and to finish the street improvements along Country Club Drive on the frontage that was
attributed to the South Course. Because of the revised schedule that staff is trying to approach
now in June, it was no longer practical to wait for that, and staff saw the opportunity to include
those items within the South Course bid package. When the award is made for the South
Course, it will incorporate the entry road and the street improvements along Country Club
Drive. He said these are items staff was going to have to bring to the Board similar to what
was done for the North Course, but various responsibilities on the project had been fragmented
to afford local contractors and consultants more opportunities to bid on the projects. He added
that this caused staff to compress more responsibilities and more projects into the bid package
SCA.
Member Spiegel stated that he was uncomfortable doing anything on the South Course until we
have the $3.5 million and that he would not vote for anything without that stipulation. Upon
question by Chairman Kelly relative to the non-refundable $750,000, Member Spiegel stated
he felt there had been too many promises that didn't happen when they were supposed to
happen, etc., and that he just did not feel comfortable without the $3.5 million. He said he did
not feel this would delay the opening since the money is supposed to be here by June 5, which
is only about two weeks away.
6
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Mr. Ortega stated that one of the conditions that he had previously suggested was that the
authorization to bid and authorization for additional engineering services be contingent on that
deposit being made, meaning that if the deposit is not made we will not execute any of the
other items..
Member Spiegel asked if this meant the $750,000 or the $3.5 million, and Mr. Ortega
responded that it would be the $3.5 million.
Member Snyder moved to, by Minute Motion, approve Change Order No. 3 (Consent Calendar Item
H) for additional engineering services in the amount of $80,980.00 and authorize the appropriation of
additional funds from Account No. 851-4663-454-4001 to the base contract, said approval to be contingent
upon receipt of the $3.5 million deposit on June 5, 1997. Motion was seconded by Spiegel and carried by
a 3-1-1 vote, with Member Benson voting NO and Member Crites ABSENT.
Member Snyder moved to, by Minute Motion, authorize the City Clerk to advertise and call for bids
for the construction of the Resort Course at the Desert Willow project (Consent Calendar Item E), said
authorization to be contingent upon receipt of the $3.5 million deposit on June 5, 1997. Motion was seconded
by Spiegel and carried by a 3-1-1 vote, with Member Benson voting NO and Member Crites ABSENT.
-- Member Snyder moved to, by Minute Motion, approve the amended Disposition Development
Agreement with Intrawest Resort Ownership Corporation to provide for certain changes as outlined and
amended by the Executive Director and authorize the Chairman to execute that Agreement, said approval to
be contingent upon receipt of the $750,000 deposit. Motion was seconded by Spiegel and carried by a 3-1-1
vote, with Member Benson voting NO and Member Crites ABSENT, with concurrence of the Board that the
City will not spend any more money on this project until the $3.5 million deposit comes in on June 5, 1997.
XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Mr. Ortega noted the items listed on the Agenda for Closed Session.
7
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
B. AGENCY COUNSEL
Request for Closed Session:
Conference with Legal Counsel regarding existing litigation pursuant to Government Code
Section 54956.9(a):
City of Palm Desert v. REFCO Capital Corporation, et al, United States District
Court, Central District, Case No. CV92-7632-RJK
Conference with Legal Counsel - Anticipated Litigation pursuant to Government Code Section
54956.9:
Significant exposure to litigation pursuant to subdivision (b):
Number of potential cases:
Conference with Real Property Negotiator pursuant to Government Code Section 54956.8:
1) Property: Land located in Section Four
Negotiating Parties: United Properties Limited
Agency: Carlos Ortega/Dave Yrigoyen
Property Owner: Palm Desert Redevelopment Agency
Under negotiation: Price Terms of Payment
2) Property: Land located in Section Four
Negotiating Parties: Inland Pacific Companies
Agency: Carlos Ortega/Dave Yrigoyen
Property Owner: Palm Desert Redevelopment Agency
Under negotiation: Price Terms of Payment
C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
XIV. PUBLIC HEARINGS
None
8
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 22, 1997
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
XV. ORAL COMMUNICATIONS
None
XVI. ADJOURNMENT
With Agency Board concurrence, Chairman Kelly adjourned the meeting at 4:25 p.m. to Closed
Session, said Closed Session to be held immediately following adjournment of the City Council meeting.
With Agency Board concurrence, Chairman Kelly adjourned the meeting at 8:40 p.m. to 2:00 p.m.
on Tuesday, June 3, 1997.
ATTEST:
SHEILA R. ILLIGAN, S • ' ' TARY TO THE
PALM DESERT REDEYE . ' MENT AGENCY
RICHXRD S. KELiY, CHAIRMA
9