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HomeMy WebLinkAbout1997-09-25MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, SEPTEMBER 25, 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. PLEDGE OF ALLEGIANCE - Councilman Walter H. Snyder III. INVOCATION - Member Robert A. Spiegel IV. ROLL CALL Present: Vice Chairman Jean M. Benson Member Buford A. Crites arrived at 4:07 p.m. Member Walter H. Snyder Member Robert A. Spiegel Chairman Richard S. Kelly Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk Richard J. Folkers, ACM/Director of Public Works John M. Wohlmuth, ACM/Director of Administrative Services Carlos L. Ortega, RDA Executive Director Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Joseph S. Gaugush, Engineering Manager John Nagus, Community Arts Manager Jeff Winklepleck, Planner David Yrigoyen, Redevelopment Agency Manager Rudy Acosta, Redevelopment Project Manager Rachelle D. Klassen, Records Technician MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * V. ORAL COMMUNICATIONS - A None VI. CONSENT CALENDAR A. MINUTES of the Adjourned Joint Meeting of the Palm Desert City Council and Palm Desert Redevelopment Agency of August 12, 1997, and the Regular Meeting of the Redevelopment Agency of September 11, 1997. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 14RDA, 15RDA, 16RDA, 14DR, 15DR, and 16DR. Rec: Approve as presented. Upon motion by Spiegel, second by Benson, the Consent Calendar was approved as presented by a 4-0-1 vote of the Redevelopment Agency Board with Member Crites ABSENT. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO RELEASE THE DESIGN -BUILD RFP ON THE DESERT WILLOW GOLF CLUBHOUSE AND APPROVE THE PROGRAM BUDGET. The following is a verbatim transcript of this portion of the Minutes: Ky RSK Richard S. Kelly, Chairman CLO Carlos L. Ortega, RDA Executive Director RA Rudy Acosta, Project Manager RAS Robert A. Spiegel, Agency Board Member JMB Jean M. Benson, Vice Chairman WHS Walter H. Snyder, Agency Board Member BAC Buford A. Crites, Agency Board Member SRG Sheila R. Gilligan, Agency Secretary 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RSK That takes us to New Business and a Request for Authorization to Release the Design/Build RFP on the Desert Willow Clubhouse and approve the program budget. CLO Mr. Chairman, the agreement with Intrawest is now in effect. The escrow has closed on the property. The agreement requires that the Agency build a clubhouse and that no less than 2,000 square foot of that clubhouse be available to Intrawest for their use. Previously you had approved a budget for the project, you did not approve a budget for the clubhouse because at that time you did not have a program for it, you did not now what the size might be, what the use would be. Since then we have discussed a clubhouse programming with the Desert Willow Committee, and therefore, the ah...the recommendation. Rudy's here to give you a presentation on what the recommendation is. RA RAS RA Good evening Mr. Chairman, Members of the Agency Board. In your packet, attached to the staff report, you have a draft copy of the RFP for the Design/Build Program on the clubhouse at Desert Willow. This program is a result of many months of research, which included tours of clubhouses, not only here in the Coachella Valley area, but also clubhouses along the Southern California Coast, Orange County, San Diego, also clubhouses in the Phoenix and Scottsdale area. It also is a result of a questionnaire that we had passed out during the summer to all members of the committee, I believe we also passed one out to each member of the ah...Council, as well. Ah...we also passed it out to um...key staff members of our current operations contract with Kemper. It also is a result of...of, ah, y'know research that we have done and updating ourselves on what is practical application for today's clubhouse. You will see, you will note in the program that it resulted in a recommendation of a clubhouse of 30,000 square feet, just over 30,000 square feet. That is all inclusive of everything that we would call the front of the house, the administrative areas, your restaurant areas, your pro shop areas, and the back of the house, which is...includes your kitchen facilities and storage, um...and your cart barn area, which is a significant portion of the overall square footage as well. This program was discussed in great detail with the Desert Willow Committee. There was a number of questions that arose regarding the appropriateness of the square footages and the level of quality of the appointments that will be expected of the candidates or the competitors in the design/build process. It met with approval with the Desert Willow Committee, and therefore, they recommended that we move it onto the Agency Board level for your approval as well. If there's any specific questions as to any particulars of the recommended budget, I'm here to answer those tonight, and any specific questions as to the design philosophies, as well, and also the design/build process as well. I've got some questions, Rudy. Yes, sir. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RAS And, um, I'm not on the Desert Willows Committee, so I've seen this first splash board at tonight's meeting. The pro shop you're looking at 2,400 square feet. RA Yes, sir. RAS Um, that's besides the starters and all that kind of good stuff, it's also where they sell the apparel, and.... is that correct? RA I'm sorry. I didn't catch that. RAS Where they sell the apparel, the t-shirts, the shorts, the skirts, the blouses. RA Yes, sir. That's correct. RAS That normally is one of the larger money-makers for a clubhouse. RA Yes, sir. RAS Much more than the restaurant, for example. And I know specifically or Indian Wells, they went back and more than doubled the size of their area. Is 2,400 square feet large enough, or should it be larger? If you go to Palm Valley, you'll see that they sell everything from soup to nuts. RA That's right. RAS Not just Palm Valley T-shirts and hats and all that sort of thing, but also apparel to wear here in the Desert. It would seem to me if we're trying to make money, which I know we are, off of the golf course and the pro shop, that 2,400 square feet is small. RA Mmm hmmm. RAS Another comment, six million dollars seems like an awful lot of money for the City to spend on a clubhouse. This isn't for The Lakes or it isn't for a multi -million dollar kind of operation, and I don't think that our residents expect a six million dollar clubhouse. I see that we've put in ah...ah...room for a banquet facility to seat a hundred, that we have a private dining/board room to seat 24, and that just doesn't seem like a city clubhouse. Um, so I guess I'm questioning the dollars and I'm questioning the square footage, and as I said, I have not had a chance to see this until tonight. RA Right. Um well, to start off with, in particular with the pro shop square footage. Um, when you take the total of pro shop and offices and storage areas, it exceeds just over 3,000 square feet. We did, in all our research and interview, we also had lengthy discussions with Kemper Sports Management and their, ah marketing um agent that they use here at the temporary clubhouse and..and their people also in Chicago as well. We also um...took the time to interview, oh boy, a great variety, ah everybody...everybody 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * that we...0000.. worked in the clubhouses that we...we visited from Arizona to Pelican Hill in Newport Beach. We sought out those persons who were in charge of...of, ah purchasing the soft goods as well. And, um, we found that it was...there was a great variance in the square footages for pro shops, and it had to deal with...ah, with... ah what it came down to was what market group they were targeting for the particular ah...appropriate ah...development. So we felt that this square footage in discussion with Kemper, was a...ah...ah...conservative but an appropriate square footage for the level of service that we want to provide and the estimations, the best estimations that we have ah... for ah...what we determine will be you know, sales of apparel. Ah, we were well aware that Indian Wells, um...has experienced ah...l think two or three modifications to their clubhouse as well. Um...as far as the corresponding dollar cost to the project, um...the...what we were finding is, again, it...it goes towards the philosophy of your development. Um...we had this discussion with the Development Committee, ah...at length, and, ah...basically what we talked about was we took...we took ourselves all the way back to the initial vision statement of what Desert Willow meant to this community and what we wanted to offer, ah...ah...as...as an amenity to the other, you know, wonderful projects that have been accomplished here in the City of Palm Desert, and we said that we wanted to be unique, and we wanted to be a step above, ah... to give people a reason to make the choice to come and spend their time and dollars at Desert Willow versus other neighboring resorts. So that started to describe a level of quality and a performance standard in every application of the 540-acre resort. Um...and this was a response. It's not...it's not to say that this is a premium response to a clubhouse, it's...it's a-a...a premium I would say would be exceeds a two hundred dollar a square foot level ah...i.e. PGA West, and Mission Hills and Vintage and Bighorn, those approach two hundred fifty dollars on up in terms of square footage, and the things that drive that ah...type of clubhouse up are the appointments, the marble countertops, the polished brass fixtures, I mean, you may spend five to eight hundred dollars for a faucet there alone. Um...and, so we looked at this and we said, well, what in determining and decimating all the information that we received in the questionnaires and the discussions and the interviews and tours and research, what can we say is a...ah modest, but yet, um...you know, little upscale of modest appropriation for this clubhouse to make it match what we feel will be the other features of this project, and what will lure interested parties into the purchase and involvement of the overall development. Um...for example, when you buy a home, or if you go to search to buy a home at an Indian Ridge or PGA West or Sun City, the sales agent doesn't only sell you that unit that you're looking at, they sell you the guard shack, the point of entry, the clubhouse, the tennis clubhouse, the golf courses, the perimeter landscape, all those that go to make the...the big picture of what you're buying if you take that unit outside of it, it doesn't have that same value. So we feel that this is consistent with ...ah...the level of standard that we have set for the golf course programs and for the expected level of standard that we are going to, mmm mmm, enforce upon the other resort developers as they come onto...ah...ah... Desert Willow and be par...be participants as well. The...so the corresponding square footages, you know, bring you to a clubhouse in the level of one 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RAS RA RAS RA RAS RA RSK RA RSK RA JMB hundred sixty-five to one hundred seventy-five dollars a square in today's market is considered moderate. How 'bout the hundred -person banquet room? Banquet room? And the 25-person... Yes... Board room. foot, and that... ah... that We had the...we had...there was discussions over...um...comments were made, would we be able to have weddings there, would we be able to have Rotary Club meetings there, would we be able to have the employee Christmas party there at this clubhouse? And, we had several discussions as to well, somewhere along the line, you have to draw the line as to how many occupants will be able to...y..you will be able to provide for in this facility. So the result of that was what you see in here. Again, it's not an overly spacious area. A hundred, you know, persons is...is you know accommodated in a 1,500 square foot area. Ah...which is not too much larger than...our...ah...our Administrative Conference Room area as well. So you can see, it's not an abundant area, but it does, it will give us that option if, say a citizen wants to rent the facility for a wedding, as well. Or a club wants to rent the facility for a particular banquet or a corporation that may be having a function there at the resort in the future. Or that you hold even a charity tournament and the dinner afterwards... That's ...that's right. ...can be held there instead of going across the street to the Marriott. That was the other thing is that there are several either scramble tournaments, and whathaveyou, that's about the number of people that you accommodate in a tournament like that, and you can have that function going on coincidentally with the other functions and not disrupting the other process. I would comment on the hundred occupancy of that one. We're using taxpayers' money, and the majority of clubs are more than a hundred people and nobody will be able to use it, and they're looking forward to having a clubhouse out there `cause we haven't had a public facility to be used where they could go so they have to go to Palm Valley and Desert Horizon and all the rest of 'ern. And...and, to make ours so small nobody can use it with their money I think is wrong. RA It... uh... we... the.. . 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RSK Uh...uh...uh...we discussed that, and I think it's up to the Council to make that decision. There's...that's what it's here for, and there's those who would like to have it larger than that, and at the same time we're trying to bring the cost down and so if the Cduncil feels like it should be larger, uh...I'm one that would say that, that if we're going to have a banquet room then we ought to have it large enough for the service clubs to meet there if they want. And like I mentioned the tournaments, uh...uh...it's...it's horrible to have to go to and put on a tournament with a hundred to a hundred and twenty players and...and at some of them a hundred and forty, and then have to figure someplace else to go for the dinner...awards dinner afterwards, so you know it...it...I'd say that's one particular one that is very much open to the Council input...of the Council. JMB Well, my other concern is I think six million is too much, so, and, without having any idea of what the six million is going to bring, we don't know what kind of a clubhouse, what it's going to look like, or anything else. I'd like to see some comparison of what some other ones are and in that bracket, just to take a number and allocate these square feet to it, to me, is wrong without having something else to go on and allocate up to six million. RAS Also, we had discussions early on that we did not want to be competing with other businesses in Palm Desert with our clubhouse, that it was going to be a convenience, that there was a question as to whether or not we were going to serve dinner, it was going to be breakfast and lunch kind of thing, the way they do it in Indian Wells Country Club. I'm not saying that they're the best. RA Mmm hmm. RAS I'm just saying that, that's what they do, and it looks like we've changed our attitude, and we want to be competitive with other restaurants in the City and other hotels in the City. RSK No, we're willing...I think the Committee is willing to let the Council decide that. It's not like this is it, you're going to take it this way or else. RAS No, I understand that. I understand that. RSK We're here to...we're here to figure out how we're gonna' do it. RAS I understand that. RSK But I would like to uh...mention one thing, um...this, the clubhouse is going to serve the hotels that are out there... RA That's correct. RSK ...and...uh...and...so...uh, we're going to be in competition with other hotels in the Coachella Valley, and this clubhouse is going to be a major part of what attracts people to that clubhouse and house attracts people to our hotels instead of somebody else's hotel. So 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 ***************************************************** RA we have to be careful, ummm...al...the other thing is that there's a big trend right now where, uh, ten years ago a corporation, uh, had a membership at a high -end country club, and that's where they entertained their customers. The trend, now, uh, is that they don't do that, and there are these high -end, um, golf courses and clubhouses, and they, rather than have a membership, they just bring their customers and...and entertain them at those locations. So our hotels and attraction of...of filling rooms, this, this clubhouse is a very important part of that, and, um, having a facility large enough to, to, to, um, handle service clubs is...um...something that we have to decide if that's what we want. The, um, the aspect of, uh, or the question about, uh, competition with, uh, other local businesses, is, ah, purely an operations discussion. Um, ah, I, part of what came out of the discussions at the Desert Willow Committee level was that, um, it was not the intent of Kemper Sports Management to have a nighttime restaurant operation going on there. Um, but, they wanted to let, wanted to be able to have that option should the Council decide that, that is an appropriate, uh...function for the clubhouse. Um, as far as the budget goes, in terms of how we determine the six million dollars, um, it is in response to a comparison of all those clubhouses that we researched and visited, as well. We have a, um, a picture book, if you may, that we handed out to all the members of the Committee as well, so they would have photographs of the different architectural styles, of the different levels of appointments for the clubhouses that we visited, we also took a video and several photographs so, with, with corresponding budget prices so that they would have an idea of what a clubhouse in the neighborhood of five million costs and what a clubhouse in the neighborhood of 30 million dollars costs, as well. So we, this is in response to that. What, what we attempted to do with this budget is give you the entire package. This, we couldn't respond before because we were talking about a schematic conceptual square footage, initially, uh, on the budget that was compiled over a year ago. Now this particular budget is responding to the partnership we, we now have with IROC to include the IROC Club Spa, it also is responding to, now that we have achieved a square footage that the committee is willing to recommend, now I can respond to what the appropriate processing fees are for the Water District, and for the permit process here at City Hall...thir-...approximately $320,000 of that budget alone is to pay for processing and permit fees. Also the question had come up how are we going to furnish the facility, what are we going to put into it. Um, we also assigned an appropriate FF&E budget to this project as well, because we didn't want any surprises down the road, we wanted the Agency Board to be fully aware of all expenses that go into developing a clubhouse, and that corresponding portion alone is in the neighborhood of $400,000, uh, that again, is a conservative and moderate appointment for a clubhouse of this type. And, then the remainder, of course, goes into the landscaping of the five -acre parcel, it's quite a significantly large parcel for the clubhouse as well. So when you extract all those, you, you, um, you know, that's where you start to get into a clubhouse, the structure itself and the, the building scan and envelope, whathaveyou, comes in the neighborhood of a little over four million. But we wanted to include everything so that you knew, tonight, that we feel, in our best estimates, estimation now, given this information, that we would respond, that six million dollars is a good, safe budget for this clubhouse. 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING sI r ii+BER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * JMB Well, it would have been nice if we could've seen, or had in our packet as well, the pictures that they had and the things that were compared with rather than just numbers because it's, you, kinda' hard to judge what you're looking at by just looking at these individual square feets and trying to find out what is what, so. RA Yes. And I apologize, I can get that information for you as well. WHS Mr. Mayor... RSK Yes, sir. WHS Uh...I have been an alternate on that committee that's trying to put this full package together, and for a long time, we have been trying to get and put together information that depicts exactly what we're creating out there. We're not just creating a golf course, we're not just creating a clubhouse, we're creating a program that involves three golf, two golf courses, involves Intrawest Resort, we have had many discussions of who and what and how. We had the people who were extremely interested in working day to day on this project, trying to come up with the best philosophy that we could, and we've come back to the Council many times with what we're doing and how we're doing it. Uh, it seems to me that the research that went into this was pretty thorough and exhaustive. I can remember when we first talked, and I can remember the Mayor and I talking about this would be an opportunity to have a place that the City could control for meetings and clubs and other organizations that would want to use it, and that the City would have the ability to offer it. I think you've done a fine job of putting together what I thought the Committee was working towards all this time. And I think that you have done an excellent job in presenting exactly what we need out there, and what the need is and why we put the numbers together that created that program. So I think you've done a fine job, and I'd like to see this matter continued so we can get on schedule and get it done and have it start making money for us. RSK Councilman Crites, you've been quiet. BAC I'd just note that the staff report may be slightly inaccurate when it says that the Committee reviewed discussed and recommended approval of the six million dollar budget. I think the Committee recommended that the Council look at both budgets. At least that was my vote. RA We have included that five million dollar option as Exhibit "C" of the staff report. Um, if you'd like, I can address that as well. The question was raised at the Committee level what can we build for five million dollars, or can we build a facility? My first answer would be is that you cannot build the program we have derived for five million dollars, but you can build whatever you want for whatever price. If you wanted to stick with the program that you have, you would be forced to start eliminating certain amenities that are included in Exhibit "B", which is the recommended clubhouse. But, um, you would be forced to make the decision, again, do we start to sacrifice the level of quality and 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * performance in the appointments of the facility, and what areas would not be considered essential. And I think I have asterisked down the program there what areas would be first to be eliminated-- Grill/Dining Room, Lounge/Bar square footage would have to be extracted, Pro Shop would have to be significantly reduced, and Meeting/Banquet areas, again, would be completely eliminated in order to reduce the size of your kitchen, as well. There would be. some reduction in Cart/Storage area, as well, to bring this budget down to a five million dollar budget. Um... JMB That's kind of like explaining if we don't have a fire tax we're going to cut out police and fire. (unclear).... see that I just can't see this kind of money without seeing what we're getting for it other than just a bunch of numbers. RSK The other thing is we're going to do a Design/Build... RA That's right. RSK ...and we've been very successful in holding cost down with Design/Build, which means we don't have that luxury of an architect putting the whole thing together, but we've come up with some excellent buildings doing that. Uh...I'd...I'd...Councilman Crites is absolutely right. The Committee recommended approval of the six million dollar club facility, but they also said they wanted to have (clears throat) something to look...for the Council to look at and what kind of things that would have to be reduced or eliminated if it was a five million dollar budget. And, to me, it would be a terrible mistake, after putting all of the investment in that we have and opportunity to attract first line hotels, to make the mistake of building a clubhouse that was either too small or not of at least the level we're talking about which is not of Bighorn or not of PGA, but um...or Indian Wells Country Club, as far as that goes. But, one that we could be proud of, and that we'd have a high -end user come there to use, and it would attract high -end users for our hotels. To me, um...the only, the only thing to do, and it would be a horrible mistake if we didn't go along with the six million dollar project. RA The ah...um...I don't know if this puts your mind at ease, Ms. Benson, but the Design/Build process will provide us with a minimum of five options of which to evaluate, and we have put together a 10-12 member committee of qualified evaluators to go through to provide the Council with the most cost effective solution that meets all the programmatic requirements. At that time, we, you will have the pictures through the design/development level of documentation. RSK And as we go along, we can work on working a little more size into that banquet room. RA That's right.. My, ah, my experience has been on the, well on the last couple ones that we've done, the Rec Center and the Maintenance Facility, I think the one that ah, the one that we awarded on the Maintenance Facility, we went out with a 12,000 maximum square footage, um, million dollar turnkey budget on that, and what we're getting in return is a fourteen and a half thousand square foot facility. Um, so the competitive nature of the 10 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 *************sssssssss******************************* design/build process forces these guys to try to give us a little bit more than what we asked for on these programs. JMB But if you tell them you've got six million, rest assured they're going to put it all in there. RA Uh...some will, some will. Not all have, not all have. Some have, uh, remember it's not a, it's not a response to the lowest responsive bid, it's the highest -rated, most cost effective proposal, so it forces them to do value engineering, bring you the best product possible, and not all of them met the million dollar budget, and some of them will exceed it. WHS Mr. Mayor, in view of what's been said and the time that's been put, putting this together, and the fact that we do, indeed, have the opportunity to look at it as the RFP goes out, I would move approval of this, that the Agency Board authorize the staff to release the RFP and approve the Program Budget. RSK That's for the six million dollar budget? WHS Yes, sir. RSK Well, is there a second to that? (Pause) I'll second it. Any other discussion or... — RAS Well, philosophically, I think we've got to look at the effect on other businesses in Palm Desert, and if you take a look at, um, the Marriott, and you take a look at their clubhouse, well, they don't have much of a facility there. Why? Because they've got a lot of restaurants in the hotel. And, true, we want a top-notch, five-star hotel to be part of Desert Willows, but, golly, they ought to have fine restaurants in there and coffee shops, etc., to take care of the people that are staying there, and so, philosophically, I'm not in total agreement with the hundred -room banquet facility, and the 80 to 100 people that are going to eat in the dining room, um, and I certainly don't want to be in competition with other restaurants in our city. Ah...I just think it's the wrong position for the City to take, so, uh, Mayor Pro Tem Benson, um, uh, is right, she doesn't know what it looks like, and I don't know what it looks like, but I think philosophically, we've got to decide which direction we want to go. RSK Can I...can I make a suggestion? Ah...w-, basically we're approving a budget so we can move ahead, and we're going to review the process as it goes along. Can we, uh, make that decision of how big that clubhouse is and... RAS Not if we're going to approve six million dollars. If we approve six million dollars, then it's going to be a six -million -dollar clubhouse. RSK Not necessarily. If it come in and we built it for five million dollars, that's what it would be. We need to take a, we need to make...um...our best estimate on basis of our value engineering, uh, we don't want to budget five million and have it cost six million, but we can work with it as we move along. 11 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BAC I may very well end up, um, voting for this configuration of space and this amount of money, but I'm not doin' it today, not when I have two colleagues who express significant need to have a better understanding of what it is and to have a discussion about comparison with other clubs so that Councilmember Benson can have a better grasp of what we're buying for six million and what X and Y bought for three million, and what somebody else bought for seven, and for the issue that needs to be discussed, I think, in terms of...I have one colleague who thinks we ought to not have meeting rooms, maybe, and one colleague that would like them larger, and I think both of those people need to have the opportunity to have some more input on this process, and I understand all the issues about schedules and everything else and so on and so forth, and I don't care. (Pause) It's that simple. RSK Um...you don't have a problem... BAC Compared to... RSK You don't have a problem with a special meeting? BAC I don't have any problem with a special meeting. RSK Because, because we, you know if we're going to go into this further, we need to have a special meeting and take the time to do that. And I have no problem with that, you know I want everybody to be happy, and I want everybody to feel comfortable with what we're doing. You know, I thought we went through the process with a 20-person committee, that we were doing that. Or I wouldn't have wasted all my time there. We could have been meeting with the whole Council all this time instead of spending all our time there thinking we were going through the process that the Council wanted. So, I'm not going to meet on it anymore unless the whole Council is there. JMB Well, I think it takes more than one meeting to approve all the things to look at.... RSK Well, let's schedule one right now, and we'll go through it. JMB But it takes more than one meeting to go through all that... BAC Well, I don't know whether it does or it doesn't, Jean, I think we can make substantial pro...and I don't think, I guess I would disagree with the Mayor in terms of the fact that, that means that all the time the Desert Willow Committee is wasting time in this `n that. Our entire process invo.... RSK Well I just said 1 wasted my time... BAC Well, I don't... RSK I didn't say they did... 12 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BAC And I don't... RSK That's up to them. BAC Okay. Iwo-... RSK I feel right now like I wasted mine. BAC Fair enough. RAS We've got a golf course, don't we? RSK Yeah... I'm talking about working on that clubhouse— it's a complicated thing. It is really a complicated thing. It's not a simple thing, a clubhouse, when you take all the dining rooms and the pro shop and the cart parking and bag drop and how you're going to do it, and how you're going to have locker rooms, restrooms, everything-- it's a complicated issue. BAC And I think I heard a fairly small number of issues that need to be addressed, and bag drop off and this `n that are not among 'ern. There are a couple of issues that are of significance to colleagues that I think need some discussion with staff. RSK How do you propose to...what, what...I need a suggestion. How do you want to go about getting all this information? RAS Well...continue it to our next Council meeting and meet in between with Mayor Pro Tem Benson and myself and whoever else wants to be there. BAC I would... RAS (unclear)...but, philosophically, I, it's not going to answer my question. BAC I would suggest that we convene, if possible for all five of us, a working session... RAS I'd do that. BAC ...which it's publicly noticed, and if we find agreement, that we can take action right then. I don't know that we need to... RAS How 'bout on the, what is it, the sixth? Monday, the sixth? RSK Well that's really a bad day for me...but that doesn't mean you can't do it. BAC I'd guess rather than finding... 13 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING br.r ir.ABER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RSK Tuesday, the seventh, is ah... RAS Tuesday, the seventh, would be fine with... RSK ...clear for me. RAS Jean, is that a good day? JMB Ah...(unclear) what it is because we have Rotary Candidate at 10 and, uh, ... RAS First thing? (Pause) Let's do it first thing in the morning on the seventh. RSK Eight o'clock? RAS Eight o'clock. RSK Tuesday, the seventh? BAC Yeah, I can at least attend for the first part of that then, `cause I teach. That's my... RSK Then you have to... BAC I teach at 9:30 to noon. So, I'll at least be here for the first part, and I've already had at least some background with this, and maybe we'll start by discussing the philosophy of it, which is what I would like to be a part...and, Jean, certainly, continue on to look at issues about comparisons with other clubhouses and such things as that. JMB ...(unclear) if we don't get through, continue it to another one...have to leave by at least 11:30, so... RSK Well, we get, we get a lot of work done, and then we meet, Council meets...ah, ah... BAC Two days later. RSK ...Thursday. RA We can make the copies of the photo books and the video and all the pictures that we've taken, comments, and stuff available... RSK We, ah... RA ...for all the Council, as well. RSK Like to change your motion, there, Councilman Snyder to... 14 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * WHS Not really, but I will. RSK Guess that's what I meant. WHS Ah...I...I'm along with you. In the early part of this, we spent so many times at those meetings and going through all of the myriad of detail and so forth that brought forth all the thinking and the preparation and the work that we've done to set forth what we think we need, so...ah...but, I agree that if there's questions, that we ought to be able to find a way to answer them, and I'll make my motion that there will be a meeting on Tuesday, the seventh of October, with the entire Council and members of the Committee to go thoroughly through this... RSK Eight a.m.? WHS At 8 a.m. to determine whether to go through this matter to present all the information needed for to make a det...sound judgment. RAS I'll second. RSK Any other discussion? Please vote. — SRG Motion carries by unanimous vote. RA Thank you. For purposes of clarifying the action taken by the Agency Board, Member Snyder moved to continue this matter to an adjourned joint meeting of the Palm Desert City Council and Palm Desert Redevelopment Agency Tuesday, October 7, 1997, at 8:00 a.m. Motion was seconded by Member Spiegel and carried by a unanimous vote. With Agency Board concurrence, the Chairman suspended the agenda at this point to consider Item C. Please see this portion of the minutes for discussion and action. B. REQUEST FOR CONSIDERATION OF PARKING LOT DEVELOPMENT HIGHWAY 74. Mr. Ortega said that staff has prepared for presentation a schedule of development, a description of the facilities to be built and cost information contained in the packet, which Mr. Yrigoyen has also previously discussed in Item C. He stated that additional questions can be answered now by Mr. Yrigoyen. Mr. Yrigoyen stated that essentially, the facts have been covered in the previous discussion. He said that this item covers authorizing staff to solicit bids for the construction of the parking improvements, 69 new parking spaces to be built. 15 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Snyder moved to, by Minute Motion, authorize the City Clerk to advertise and call for bids for the development of the parking lot between Highway 111 and El Paseo east of Highway 74 (Contract No. R1347Q). Motion was seconded by Spiegel and carried by a 4-1 vote with Chairman Kelly voting NO. Member Crites asked if this action obligates the Agency to not accept any bids and go no further until the other issues are addressed. Mr. Yrigoyen stated this was correct. He added that the specifications will contain a provision that the Agency has the right to reject or terminate all bids should it be unsuccessful in acquisition of the property. C. REQUEST FOR APPROVAL OF PARKING LOT OWNER PARTICIPATION AGREEMENT BETWEEN JIM COTTER, PALOMINO, AND FRED FERN Mr. Ortega stated that this matter is related to an agreement that was just reached two days' prior with business owners who would surround the parking lot. He said that he would like the Agency Board to at least consider what is taking place here by adding an item to tonight's Agenda so that the Board will have a better understanding of the whole project, and if the Agency Board so chooses to approve this specific item, it can be accomplished, followed by consideration of this item. He added that he had spoken with the City Attorney regarding the appropriateness of considering the items in this order. Mr. Erwin stated that since it is an item which presented itself following the posting of the Agenda, it required a motion to be placed on the Agency Agenda. Member Crites moved to add this item to the Agenda. Motion was seconded by Spiegel and carried by unanimous vote. Mr. Ortega stated that he was providing the members of the Agency Board a memorandum with an agreement, and that Mr. Yrigoyen was there to further explain the matter and answer any questions the Board may have. He stated that it was the Board's decision whether to act on the matter this evening, and if the Board chooses not to act upon it, then at least, they would have before them background information which would assist them in reaching a decision for Item B of the Agenda. Mr. Yrigoyen stated that this item entails two resolutions requesting the Agency Board and City Council approval. These resolutions call for the expenditure of monies in the Project Area in order to alleviate blight, as called for in the Redevelopment Plan, based upon certain findings that there are no other means of City -financing this project but through tax increment funds financing. Those findings also regard mitigation of traffic problems, parking problems, circulation, and drainage problems. He added that an agreement has been written in order to accomplish this project through a coordinated effort with the other developers in the 16 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 ***************************************************** Project Area, the owner of the Fidelity Bank Building, the owner of the Palomino Restaurant and the El Paseo Collection property owner. Their participation involves paying for that portion of required parking improvements which are their obligation in conversion of the properties. Both the Fidelity Bank Building and the Palomino Restaurant would be obligated to pay for their respective portions of parking improvements that would be imposed on them for the expansion and development of their facilities. He stated that each of these two would also provide for an easement over that particular piece of property which would become part of the overall parking area, the El Paseo Collection property would also be included as an easement in order to provide for coordinated parking. He went on to say that should the Agency, as a participant in the payment for the balance of the parking improvements and the payment for the acquisition of property, fail in its acquisition of the property east of Highway 74, north of El Paseo and south of Highway 111, this agreement is then null and void. Mr. Yrigoyen then said he would be happy to answer any questions the Agency Board/City Council had. Mr. Ortega also added that the Palomino, pursuant to this agreement, has cooperated both by providing an easement and by providing money. Member Spiegel noted that the staff report shows a figure of $209,294.80 to build the lot and asked staff for confirmation of this figure. Mr. Yrigoyen stated that there is a revised figure. He said the $209,294.80 figure included $70,000.00 for a Porte-Cochere rehabilitation over the Fidelity Bank Building. This is no longer an aspect of this project. Therefore, the development cost for this project is estimated to be at $157,444.00, plus obligations to pay for the design, which has been before the Agency Board previously at $30,000.00. The total cost which will be allocated and distributed to the participants who are paying for their proportionate share of the parking will be $187,444.00 (estimated). Member Spiegel asked if the cost of acquiring the property would be in addition to this figure, or if it was just for building the lot. He further inquired if the Agency was going to share cost with the Palomino and Fidelity and how much each was responsible for. Mr. Yrigoyen stated that the $187,444.00 is to build the lot, and that, yes, we would be sharing the cost with the Palomino and Fidelity. He further stated that the Fidelity Bank Building obligation, as he understands it, will be to pay for 20 parking spaces. In order to do their retrofit, the Palomino Parking, as he further understands, will be to provide for approximately 10 parking spaces. He went to say that the Agency's idea is that these numbers will be divided into the overall numbers of new parking spaces that will be built, and the per parking space cost will be allocated times 20 and times 10, respectively. Vice Chairman Benson asked how many total parking spaces would be provided. 17 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Yrigoyen replied the number of new parking spaces to be developed is 69, according to our engineers at this time. Member Spiegel asked if, then, approximately 40% of the cost of this project will be paid by Fidelity and Palomino, and 60% by the City. He continued by asking that in addition to the 60%, if the Agency also be paying to acquire the property. Mr. Yrigoyen responded affirmatively. Mr. Ortega added that when looking at the total parking area, the participants will be giving us about as much land in what will then be public easements. He went on to say that staff feels the land will be a "wash", as those easements will be provided from what is now private parking becoming public parking. Vice Chairman Benson asked if the property owner had decided to sell. Mr. Yrigoyen responded no, that the offer had been re -extended to her Chairman Kelly asked what he meant by that. Mr. Yrigoyen said that we have submitted our offer on the property, the owner has been given an opportunity to consider the offer, and we have not heard back from her yet. Chairman Kelly said the owner had called him and stated that no one was negotiating with her. Mr. Yrigoyen stated that staff has spoken with her. Mr. Ortega added that staff has contacted her in writing and she has spoken with at least three of the Redevelopment Agency staff on several occasions. Member Spiegel asked if negotiations were close to finalization. Mr. Ortega responded that the owner has secured legal counsel, and he indicated that they will provide a written response. Therefore, at this time, he cannot say how close the deal is. Member Crites noted that there is a provision for valet parking. He was concerned that the public may get the impression that even if a portion of it was valet, they would be inclined to stay out of it. He asked if the provision could be written very mindful of the fact that while valet service would be available in a portion of the lot, it was still a public parking facility. He noted that it states on page eight of the conditions that valet parking is an accepted provision, but he is very concerned that the public is not given the impression that it is for this service only. 18 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Yrigoyen answered that staff will be sure that this point is covered in the agreement. Chairman Kelly inquired why the Agency was going through this process when the property had not yet been acquired. Mr. Yrigoyen responded that a time line had already been established for this project. It stipulates that completion of the parking facilities must be done by mid - December, and he went on to remind the Board that another item before them tonight is the Request for Authorization to solicit bids for this project. He added that this request, in. order for the project to meet its time line, needs to be approved tonight, and if the Board sees fit not to approve the Authorization, the ability to stay on the time line for mid -December to construct the facility will be impossible. Mr. Ortega stated that it is not unusual for an Agency to approve an agreement subject to a condition that it acquire property. He added that there is a provision within the agreement which states if the Agency fails to acquire the property, the deal is off, and the bids for construction will be rejected. Member Crites asked whether a "yes" on this item necessitates a "yes" on a vote of condemnation, or the like. Mr. Yrigoyen said it does not. Mr. Ortega said that there is also a provision which states the Agency does not agree to vote "yes", that it only agrees to consider a Resolution of Necessity, it is all that can be agreed to. Member Crites moved to: 1) Waive further reading and adopt Resolution No. 97-85 of the City Council of the City of Palm Desert approving payment by the Palm Desert Redevelopment Agency for all or part of the cost of construction of a publicly owned parking lot; 2) Waive further reading and adopt Resolution No. 346 of the Palm Desert Redevelopment Agency approving an owner participation agreement regarding the construction and operation of a publicly owned parking lot (Contract No. R13480) and approving payment by the Agency for all or part of the cost of construction of that parking facility. Motion was seconded by Snyder and carried by a 4-1 vote with Chairman/Mayor Kelly voting NO. X. CONTINUED BUSINESS None XI. OLD BUSINESS None 19 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the Closed Session items listed on the Agenda. 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-RJF Conference with Real Property Negotiator pursuant to Section 54956.8: 1) Property: Negotiating Parties: Agency: Property Owner: Under Negotiation: 2) Property: Negotiating Parties: Agency: Property Owner: Under Negotiation: 3) Property: Negotiating Parties: Property Owner: Agency: Under Negotiation: Land located in Section 4 United Properties Limited Carlos L. Ortega/Dave Yrigoyen Palm Desert Redevelopment Agency X Price X Terms of Payment 74-039 San Marino Circle, Palm Desert Carlos L. Ortega/Dave Yrigoyen Ray Winner X Price X Terms of Payment 74047 San Marino Circle, Palm Desert Gary Tryon Carlos L. Ortega X Price X Terms of Payment C. CHAIRMAN AND MEMBERS OF THE AGENCY 20 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 1. Member Crites commented that in looking at the Request for Proposals for the Golf Course Clubhouse, (Item IX, A on this agenda) page three of the document notes architectural design and questioned why the Architectural Review Commission was not in the "loop" of the decision making process for this project. He stated that he would ask for their inclusion in this project. He went on to say that page four of the same document specifies functionality and performance of materials to be installed within the project. He noted that it does not mention significant consideration to those appointments that are energy -saving in nature. He believes it should be the City's firm commitment to conservation of natural resources, and as an example to its citizenry in its design of this project, to give extra consideration to those bidders who propose incorporation of state-of-the-art, innovative technology for the appointments, not just the normal energy -saving fixtures that are prescribed by law. He stated he would like these issues addressed at the meeting to be held Tuesday, October 7. 2. Mr. Ortega reannounced, for the benefit of Member Crites who was absent at the time, that the Intrawest land deal had now been closed. He stated the money is in hand and the agreements are now in force for both sides. Upon a motion by Spiegel, second by Crites, and unanimous vote of the Agency Board, Chairman Kelly recessed the meeting at 5:17 p.m. for dinner and Closed Session. He reconvened the meeting at -- 7:00 p.m. XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XIV. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF ACD2 DISPOSITION, DEVELOPMENT AND IMPLEMENTATION AGREEMENT (DDIA) AMENDMENT. Chairman Kelly, with Agency Board concurrence, directed that this item be considered in conjunction with City Council Public Hearing Item A, due to its correlation to that project. Please see that item for testimony, discussion and action. XV. ORAL COMMUNICATIONS None XVI. ADJOURNMENT 21 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 25, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Upon motion by Spiegel, second by Crites, and unanimous vote of the Agency Board, Chairman Kelly adjourned the meeting at 9:40 p.m. ATTEST: Z71.--/tv SHEILA R. GILLIGAN, RETARY TO THE PALM DESERT REDS OPMENT AGENCY 22