HomeMy WebLinkAbout1998-04-23MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, APRIL 23, 1998
CIVIC CENTER COUNCIL CHAMBER
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I. CALL TO ORDER
Chairman Benson convened the meeting at 4:05 p.m.
II. PLEDGE OF ALLEGIANCE - Mayor Pro Tempore Robert A. Spiegel
III. INVOCATION - Councilman Richard S. Kelly
IV. ROLL CALL
Present:
Member Jim Ferguson
Member Richard S. Kelly
Vice Chairman Robert A. Spiegel
Chairman Jean M. Benson
Excused Absence:
Member Buford A. Crites
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
Pat Conlon, Director of Building and Safety
Phil Drell, Director of Community Development
Paul Gibson, Finance Director/City Treasurer
John Nagus, Community Arts Manager
Mary P. Gates, Deputy City Clerk
V. ORAL COMMUNICATIONS
MS. DONNA BETH RAMIREZ, a resident of One Quail Place for two and a half years, addressed
the Council/Agency Board and expressed concern with the deteriorating condition of the complex,
including tiles falling off the roof, water seeping into apartments, plants dying, sidewalks being
swept only once every two to three weeks, dogs swimming in the pools, and neglect and destruction
of the trees. She presented a letter to the City Manager outlining her concerns.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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Mayor/Chairman Benson stated that the City was aware of the concerns of the homeowners and
assured Ms. Ramirez that these concerns would be addressed. She said the City of Palm Desert had
recently taken over that property and would be working on the problems stated.
MRS. RITA GIROUX, also a resident of One Quail Place, expressed concern with the reduction in
security at the apartment complex. She said she had been told there would be security guards there
24 hours per day, and the new management had come in and cut the security down to where there
is only one security guard, and he is on duty from 6:00 p.m. to 4:00 a.m. She submitted to the City
Manager a list of residents who requested that the security level be increased to where it used to be.
MS. SHIRLEY COFFEE stated she had been a resident of One Quail Place for 12 years and had met
with Councilman Ferguson the previous Monday to express her concerns. She said she had never
seen the complex in the condition it is in now.
VI. CONSENT CALENDAR
A. MINUTES of the Regular Meeting of the Redevelopment Agency of April 9, 1998.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 5ORDA,
51RDA, 50DR, AND 51DR.
Rec: Approve as presented.
C. MINUTES of the Housing Advisory Committee (HAC) Meeting of March 11, 1998.
Rec: Receive and file.
D. REQUEST FOR APPROVAL of Water & Sewer Fees for Coachella Valley Water District
(CVWD) at the Desert Willow Resort Course Project.
Rec: By Minute Motion, authorize the appropriation of $44,250.00 from the Desert
Willow Construction Account No. 851-4619-433-4001 to pay for the Coachella
Valley Water District fees for water/sewer connection services and construction
water costs at the Desert Willow Resort Course project.
Upon motion by Kelly, second by Spiegel, the Consent Calendar was approved as presented by
unanimous vote of the Agency Board.
VII. CONSENT ITEMS HELD OVER
None
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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VIII. RESOLUTIONS
None
IX. NEW BUSINESS
A. REQUEST FOR APPROVAL OF AMENDMENT TO CONTRACT NO. R13270 WITH
GOLF DIMENSIONS FOR ADDITIONAL DEVELOPMENT AND CONSTRUCTION
MANAGEMENT SERVICES FOR THE DESERT WILLOW RESORT.
Mr. Ortega noted the report in the packets. He said this matter had been before the Desert
Willow Committee twice, and the Committee recommended approval.
Project Manager Rudy Acosta stated that the purpose of this request was a result of staff sitting
down several months ago with certain key development management consultants to determine
what was left to complete the project. He said the staff report listed various projects to be
completed, including the clubhouse, perimeter wall, and perimeter landscape. He noted these
were services not included in the original scope of services for Golf Dimensions and that it was
work that needed to be completed to finish the project. He said staff had negotiated what he
felt was a very fine proposal based on the aggregate total of the project costs listed in the staff
report. He said the amount proposed of $252,658.50 reflected approximately two and half to
three percent of the total Desert Willow costs, and this was significantly under the industry
standard. He said it did not change the bottom line on the overall project cost budget and, in
fact, there was a potential surplus of approximately $1.5 million on the south course budget.
Member Spiegel questioned item number nine dealing with hotel sites, the interfacing with
prospective hotel developers as needed, and coordination of utilities. He asked whether this
was ever part of the Golf Dimensions agreement.
Mr. Acosta responded that it was not part of the original contract. He said the original contract
addressed the golf course issues, and at the time Golf Dimensions was hired, staff was not sure
what was happening with the hotel project. He said that over the last four or five months since
construction on the IROC pads has begun, they had made a number of requests for
clarification, and the need to have a representative out on the site to be able to answer those
questions and clarify what is the City's responsibility and what is their responsibility has grown
increasingly as they progress in their project schedule.
Member Spiegel asked if he understood correctly that there is no construction involved and that
this was strictly an additional $250,000 to give advice.
_ Mr. Acosta said it was for development management and construction management personnel
to be assigned at the job site. He said they would do the daily documentation, daily
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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coordination out in the field, maintaining project scheduling and the budget, and act as a liaison
for Redevelopment and City staff to the actual construction staff in the field.
Upon question by Chairman Benson, Mr. Acosta responded that the fifteen items listed in the
report were for the south course.
Member Ferguson stated that this was brought to the Desert Willow Committee the previous
week. He said this was money that was already identified in the budget for the south course,
no new money was being spent, the south course was still well under budget, and there would
still be over $1 million left in reserve for contingencies. He said it was the Agency's opinion
that that money was best utilized by taking it from other aspects and putting it into this aspect.
He said with that understanding, he viewed Golf Dimensions as a general contractor who works
with all the other contractors and coordinates everyone out in the field. He said with that in
mind, the Committee unanimously recommended these changes be adopted.
Chairman Benson questioned the items listed, specifically the clubhouse, and said this was not
necessarily for the south course. Mr. Acosta agreed and said it was for both the north and
south courses. He said the remainder of the items were south course related. Chairman
Benson said she was in a dilemma because she would not vote for anything on the south course
but would vote for the clubhouse.
Member Kelly moved to, by Minute Motion: 1) Authorize the amendment of the professional service
contract for Golf Dimensions in the amount of $252,658.50 plus $19,500.00 for reimbursables for additional
development and construction management services; 2) appropriate $25,000.00 from Account No. 851-4663-
454-4001 and $247,158.50 from Account No. 851-4619-433-4001. Motion was seconded by Ferguson and
carried by a 3-1 vote, with Chairman Benson voting NO.
B. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 1 TO CONTRACT NO. R12790
WITH PARK WEST GOLF, INC. FOR ADDITIONAL CONSTRUCTION SERVICES AT
THE DESERT WILLOW RESORT COURSE PROJECT.
Mr. Ortega noted the report in the packets. He said this item had been before the Desert
Willow Committee which had recommended approval.
Project Manager Rudy Acosta stated that this proposal related to a qualification made at the
August 28, 1997, Agency Board meeting that gave approval to proceed with the south course.
He noted a paragraph in the staff report for that meeting which references that staff reserved
the right to the come back to the Agency Board at a later date to identify what the costs were
to provide the snack bar/restroom facility at the turnaround to holes nine and ten and to the
traffic signal modifications at Desert Willow Drive/Country Club Drive and Portola
Avenue/Desert Willow Drive. He said staff felt the price was very fair and reasonable and
recommended approval.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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Member Spiegel asked whether the bidders (Park West, Environmental Golf, and Landscape,
Unitd.) all knew that this was not part of the bid package, and Mr. Acosta responded that they
were aware of this.
Member Ferguson asked whether these bids had been done under the City's charter. Mr.
Acosta responded that these prices were based on prevailing wage because the contract was
initially awarded under the Redevelopment Agency with prevailing wage. He said it had to
stay prevailing wage for the life of this contract but that all subsequent contracts brought to the
Agency Board had been moved over to the City agenda; i.e., the perimeter landscape and the
perimeter wall.
Member Ferguson asked whether it was Mr. Acosta's opinion that it was cheaper to do a
change order under prevailing wage rather than go out to bid as a separate project under the
City's charter.
Mr. Acosta responded that he felt it was cheaper in this case because the bid was negotiated.
Member Spiegel moved to, by Minute Motion: 1) Approve Change Order No. 1 to Contract No.
R12790 (Park West Golf, Inc.) in the amount of $240,679.16 for additional construction services; 2)
appropriate said amount from contract contingency to base. Motion was seconded by Kelly and carried by
a 3-1 vote, with Chairman Benson voting NO.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
None
XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Mr. Ortega noted the Closed Session items listed on the Agenda as well as on the Agenda
Addendum.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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B. AGENCY COUNSEL
Request for Closed Session:
Conference with Real Property Negotiator pursuant to Section 54956.8:
1) Property: 74-039 San Marino Circle, Palm Desert, CA 92260
Negotiating Parties:
Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency
Property Owner: Ray Winner
Under Negotiation: _xL Price Terms of Payment
2) Property: 74-047 San Marino Circle, Palm Desert, CA 92260
Negotiating Parties:
Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency
Property Owner: Gary and Norma Tryon
Under Negotiation: Price Terms of Payment
3) Property: Northeast corner of Frank Sinatra and Cook Street
Negotiating Parties:
Agency: Carlos L. Ortega, RDA Executive Director
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: Price Terms of Payment
NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED
72 HOURS PRIOR TO THE MEETING:
4) Property:. 82 acres at the southeast corner of Highway 111/Portola Avenue
Negotiating Parties:
Property Owner: Palm Desert Redevelopment Agency/Phil Drell
Other Parties: Tim Bartlett
Duke Baker
Under Negotiation: JL Price a_ Terms of Payment
Conference with Legal Counsel regarding existing litigation pursuant to Government Code
Section 54956.9(a):
a) City of Palm Desert v. REFCO Capital Corporation, et al, United States District
Court, Central District, Case No. CV92-7632
b) City of Orange, et al. V. Alabama Treasury Advisory Program, et al., Los Angeles _
Superior Court Case No. BC106461
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. CONSIDERATION OF APPOINTMENT OF TWO REPRESENTATIVES (ONE EACH
FROM LAS SERENAS APARTMENTS AND ONE QUAIL PLACE) TO THE HOUSING
ADVISORY COMMITTEE (Continued from the Meetings of March 26 and April 9, 1998).
Member Spiegel stated that he and Member Ferguson had interviewed applicants and had made
a decision for one of the properties but not for the other one.
Housing Programs Coordinator Terri LaRocca stated that staff had sent applications to three
additional applicants. She said she had spoken with each of these three applicants who would
be submitting their applications very shortly. She said it would be okay to wait to make the
appointments until the second representative is selected.
Member Spiegel moved to continue this matter to the meeting of May 14, 1998. Motion was
seconded by Ferguson and carried by unanimous vote.
Member Spiegel moved to adjourn the meeting at 4:35 p.m. to Closed Session, said Closed Session
to be held following consideration of the City Council Agenda. Motion was seconded by Ferguson and carried
by unanimous vote.
Chairman Benson reconvened the meeting at 7:00 p.m.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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XIV. PUBLIC HEARINGS
A. REQUEST FOR CONSIDERATION OF DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY AND PDH
ASSOCIATES, L.L.C. AND CONSIDERATION OF SUMMARY REPORT (JOINT
MATTER WITH THE PALM DESERT CITY COUNCIL).
Councilman/Member Spiegel moved to continue this matter to 9:00 a.m. on Wednesday, April 29,
1998. Motion was seconded by Ferguson and carried by unanimous vote.
Mr. Jeff Rabin, Agency Counsel, stated he would like to summarize a few changes as follows:
1) The closing date would be May 15, 1998;
2) There are a number of restrictions on the use of the property that would be included
in some CC&R's, and there would also be restrictions on the obligations of the
Agency, primarily to maintain the golf course. He said this would have to be in
separate CC&R's imposed on the Agency.
3) The agreement before the Council/Agency Board provides that the Agency could not
sell any other unimproved property in Section 4 for a comparable type of hotel. He
said there was some negotiation about that, and staff proposed that the restriction
would exist for five years. For five years after that period PDH would have a right
of first refusal if the City wants to bring in someone else to do another comparable
type of limited service or extended stay hotel.
Mr. Ortega stated that by law this had to be made available a minimum of two weeks in
advance, and any changes had to be done in a forum such as this.
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PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 23, 1998
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XV. ADJOURNMENT
With Agency Board concurrence, Chairman Benson adjourned the meeting at 11:10 p.m. to 9:00
a.m. on Wednesday, April 29, 1998.
ATTEST:
SHEiLA R. GILLMAN, N, SECiplARY
PALM DESERT REDEVEL•ENT AGENCY
JE ,N M. BENSON, CHAIRMAN
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