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HomeMy WebLinkAbout1997-09-11MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, SEPTEMBER 11, 1997 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Kelly convened the meeting at 4:00 p.m. for joint Oral Communications with the City Council. H. ROLL CALL All present Upon motion by Crites, second by Spiegel, and unanimous vote of the Agency Board, Chairman Kelly recessed the meeting at 6:10 p.m. for dinner and Closed Session. He reconvened the meeting at 7:00 p.m. III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of August 28, 1997. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 13RDA and 13DR. Rec: Approve as presented. C. INVESTMENT PORTFOLIO SUMMARY for July, 1997. Rec: Receive and file. MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. REQUEST FOR APPROVAL, of Change Order No. 2 to Contract No. R10700 with Oscar G. Armijo, CPA, Joint Venture with Diehl, Evans and Company to Perform Financial Audit of Seven Multi -Family Apartment Projects. Rec: By Minute Motion, approve Change Order No. 2 in the amount of $1,915.07 and authorize the appropriation from unobligated revenues from the Special Revenue Low and Moderate Income Housing Fund. Upon motion by Spiegel, second by Crites, the Consent Calendar was approved as presented by unanimous vote of the Agency Board. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS None VII. CONTINUED BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE PERIMETER LANDSCAPE AND SIDEWALK AT THE NORTH COURSE OF THE DESERT WILLOW PROJECT SITE (Contract No. R12780), Continued from the Meeting of August 28, 1997. Mr. Ortega stated that staffs recommendation remained the same as at the last meeting and that Project Manager Rudy Acosta was available to answer any questions. Mr. Acosta stated that the additional study the Agency Board asked staff to do has been done. The low bidder was asked to restudy the figures submitted and present what the cost savings would be if the project were bid out with non -prevailing wages. The result was a savings of approximately 9.6% or $99,000.00. He noted that at this time, we are beyond the 60-day limit for the bid; therefore, staff went back to each bidder on this project and asked permission to hold their bid prices for the Agency Board to make a decision on the project. Member Crites asked why staff was continuing to recommend awarding the bid at this time when the savings would be approximately $100,000.00. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Acosta responded that if the Agency Board waited until after the election, the project construction would not actually begin until some time in 1998. The change in material and labor prices at that time would more than offset the savings. He noted that bids we have now are based on prices as of June, 1997. Chairman Kelly stated he felt this was something that if it were a developer, the City would insist on them doing the work. Money has been invested in the wall and artwork, and he felt it would be a shame to leave it unlandscaped for the opening of the season. He added that he felt this was an opportunity to get the work done and then dedicate the artwork. Member Benson stated that the Agency could end up paying less if it waited until after the election and that she did not see any clamor in waiting to do the sidewalk. She said she felt it would be wrong to rush in and get the project done without waiting to see the results of the Charter City issue. Member Snyder stated he felt the Agency would get caught with rising prices by waiting. Member Snyder moved to, by Minute Motion, authorize the Chairman to enter into an agreement with Valley Crest Landscaping (Santa Ana, California)for the construction of the perimeter sidewalks and landscape in the amount of $1,028,761.56 and authorize a ten percent contingency in the amount of — $102,876.16. Motion was seconded by Spiegel and carried by a 4-1 vote, with Member Benson voting NO. B. REQUEST FOR CONSIDERATION OF EXTENSION OF CONTRACT FOR SERVICES WITH THE DESERT COMMUNITY COLLEGE DISTRICT AUXILIARY (Contract No. R10342), Continued from the Meeting of August 28, 1997). NOTE: The Agency Board considered Items B and C together. Councilman Spiegel expressed concern with the fact that the City has a Business Support Center whose function is to look at empty retail space in the City, and to spend $50,000 for something that is not particularly successful for the City did not make sense to him. He said he had a lot of other questions about the scope of services (i.e., items C, D, and E) but that Economic Development Manager Paul Shillcock was not available at the meeting to answer them. Member Crites suggested that Member Spiegel and one other member of the Agency Board sit down and talk to this group and this office and come back with something that they and other members of the Agency Board can support in terms of tending to this. Motion was seconded by Benson and carried by unanimous vote. Member Snyder offered to work with this group. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. REQUEST FOR CONSIDERATION OF ECONOMIC DEVELOPMENT WORK PROGRAM FOR FISCAL YEAR 1997/98 (Continued from the Meeting of August 28, 1997). See Item B above for discussion and action. VIII. OLD BUSINESS None IX. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the items listed on the Agenda for Closed Session. B. AGENCY COUNSEL Request for Closed Session: Mr. Erwin asked that the Agency Board add the following to 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 Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: Property: APN 627-081-009; 627-081-101 Negotiating Parties: Agency: Carlos Ortega/Teresa LaRocca Palm Desert Redevelopment Agency Property Owner: Noemi F. Nunez, Richard Nunez, Kelley Nunez Other Party: Steve Jones/Joe Sitko, Building Horizons Under negotiation: Price x Terms of Payment Member Snyder moved to add these items to the Agenda for discussion in Closed Session. Motion was seconded by Crites and carried by unanimous vote. C. CHAIRMAN AND MEMBERS OF THE AGENCY None 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * X. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XI. PUBLIC HEARINGS A. REQUEST FOR CONSIDERATION OF ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION IN EMINENT DOMAIN OF A PORTION OF A LARGER PARCEL LOCATED AT 73-075 HIGHWAY 111, CITY OF PALM DESERT, CALIFORNIA FOR PURPOSES OF REDEVELOPMENT, IN CONNECTION WITH THE AGENCY'S REDEVELOPMENT PLAN FOR PROJECT AREA NO. 1. Mr. Ortega noted the staff report in the packets. He said staff had notified all of those individuals identified in a litigation guarantee provided by the title company of this public hearing. Redevelopment Manager David Yrigoyen reviewed the staff report, noting that findings the Agency needed to consider in adopting the resolution of necessity were as follows: 1) The public interest and necessity require the project; 2) the project is planned or located in a manner which will be most compatible with the greatest public good and least private injury; 3) the subject property is necessary for the proposed project; 4) the offer required by Section 7267.2 of the Government Code has been made to the owner of record. He noted that the offer had been sent to the owner of record. He stated that staff felt there were proper findings to adopt the resolution of necessity. Chairman Kelly declared the public hearing n and invited testimony in FAVOR of or OPPOSED to this request. MS. JOYCE COHN, 398 Via Carisma, Palm Springs, stated she did not want to sell her .,p:.4 ty and was open to alternative ways of negotiation. Upon question by Chairman Kelly as to what kind of alternative negotiations, Ms. Cohn responded that she would let her attorney speak to that. Chairman Kelly asked staff if negotiations had been conducted. Mr. Yrigoyen responded that staff had sent an offer letter and that no response had been received. Upon question by Member Crites, Mr. Yrigoyen responded that it was to build a parking lot in an area that really needs it behind the Shell Station at Highway 111 and Highway 74. Member Crites asked whether public parking was designed for the businesses in that area, and Mr. Yrigoyen responded that it was designed to promote development in that area. Member Crites stated that this was not a public use like a public park, we're not putting a public road through it, we're not doing public drainage for flood control, etc. and that this was eminent domain for economic development. Mr. Yrigoyen responded that it was eminent domain for 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * public parking; however, there is a consideration with regard to drainage patterns that the public parking will provide for proper drainage patterns. MR. RICHARD COHN, P.O. Box 4726, Palm Springs, stated that this involved his mother's property, and he asked that staff repeat what was being involved in this matter. Mr. Erwin stated that this was a public hearing conducted by the Redevelopment Agency in accordance with the laws of the State of California to make determination of necessity of acquiring a parcel of property by eminent domain. Mr. Cohn stated he felt what Mr.Yrigoyen said did not make sense because there is quite a bit of parking in that area now, and this piece of property does not seem to be necessary. Chairman Kelly declared the public hearing closed. Member Spiegel asked if the Agency attempted to negotiate on this property. Mr. Ortega responded that the offer that was made said that the offer was being made pursuant to Council instruction that is based on an appraisal of the property and that they can respond. He said staff was always open to negotiation. He said there was no response when the offer was made. He added that even if the Agency Board adopts this resolution and authorize staff to proceed with the recommended action, staff was always open to negotiation, and if terms are agreed upon, the process could be stopped. He said the process was provided so that in case there is no agreement, we can continue and ultimately the price and other issues would be determined. Member Spiegel asked if there had been any discussions between the Agency and the owner of the property. Mr. Ortega responded that there had been discussions within the last two days, and basically the response has been that the offer is too low. Mr. Folkers stated that he had talked with Mrs. Cohn for the last several years regarding the City's widening project at the intersection of Highway 111 and Highway 74 and discussed the possibility that the City might be doing something either on a private basis or as part of the Redevelopment Agency for parking lot acquisition. He added that she indicated at that time that she was not interested in selling her property. Member Spiegel asked whether it was necessary to acquire this property right away. Mr. Ortega stated that a schedule had been scheduled, and we are at the point where we would need to make that decision in order to proceed and have the parking lot ready for the season. Member Spiegel asked how soon this would get to the courts if we went through the eminent domain process. Mr. Ortega stated that if the Board adopted a resolution at this meeting, staff would file tomorrow with the courts so that a parking lot could be built by the first part of November. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 11, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Chairman Kelly Ind the public hearing. MS. COHN stated that the address on correspondence to her was wrong and it took a circuitous route until it reached her from August 22nd to a few days ago. She said the address was old, and she did not understand why it was sent to her former tenant, who is no longer on the lease and who then sent it to the tenant that is now on the lease, and he sent it to her. She said she receives her property tax bills regularly, and they are sent to her correct address. She said she did not have enough time to make decisions. She reiterated that she did not want to sell. Chairman Kelly declared the public hearing . Member Benson stated that she agreed with the staffs recommendations and felt it was okay if staff wanted to continue negotiations while the process is going side by side. Member Benson moved to waive further reading and adopt Resolution of Necessity No. 345. and authorize that an eminent domain proceeding be filed to acquire the subject property and direct staff to negotiate with the owner to try to reach an equitable solution before this goes to court. Motion was seconded by Snyder and FAILED by a 3-2 vote, with Members Kelly and Crites voting NO. Mr. Erwin noted that this resolution required a 4/5ths vote in favor in order to pass. XII. ORAL COMMUNICATIONS MR. JOEL SIMPSON addressed Council and expressed concern with Southern California Edison and Imperial Irrigation District illegally charging for consumption rather than time. XIII. ADJOURNMENT Member Spiegel moved to adjourn the meeting to Closed Session at 8:25 p.m. Motion was seconded by Crites and carried by unanimous vote of the Agency Board. He reconvened the meeting at 9:15 p.m. and immediately adjourned with no action announced from Closed Session. /, it/fit) SHEILA R. GILL.: AN, SECI;. ARY TO THE PALM DESERT REDEVEL ENT AGENCY .de RICHARD S. KELLY, CHAIRMA 7