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HomeMy WebLinkAbout1998-02-12MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, FEBRUARY 12, 1998 CIVIC CENTER COUNCIL CHAMBER . * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Benson convened the meeting at 4:00 p.m. H. ROLL CALL Present; Member Buford A. Crites Member Jim Ferguson Member Richard S. Kelly Chairman Jean M. Benson Excused Absence: Vice Chairman Robert A. Spiegel Also Present; Carlos L. Ortega, Executive Director 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 Mary P. Gates, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of January 22, 1998. Rec: Approve as presented. B. CL.ATMS AND D .MA S A 1 INST THE AG .NCY EASURY - Warrant Nos. 37RDA, 39RDA, 4ORDA, 37DR, 39DR, and 40DR. Rec: Approve as presented. PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. PORTFOLIO MASTER SUMMARY for the month of December 1997. Rec: Receive and file. D. REQ LEST FOR AUTHORIZATION to Retain Robert Bein, William Frost & Associates to Develop a Site Plan for Parking and Park Facilities at the Southeast Corner of Portola and Highway 111. (Contract No. R 13980) Rec: By Minute Motion, authorize staff to retain the engineering firm of Robert Bein, William Frost & Associates to develop a site plan for parking and park facilities at the southeast corner of Portola and Highway 111, and authorize the appropriation of $2,340.00 from the Agency's Unobligated Project Fund. E. REQUEST FOR CONSIDERATION of Annual Review of the Redevelopment Agency Investment Policy. Rec: 1) By Minute Motion, approve the Redevelopment Agency Investment Policy; 2) waive further reading and adopt Resolution No. 354 adopting the Redevelopment Investment Policy. Upon motion by Kelly, second by Ferguson, 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 None 2 1bIINUTES PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VIII. OLD BUSINESS A. REQUEST FOR APPROVAL OF SANTA ROSA APARTMENTS REHABILITATION. Mr. Ortega reviewed the staff report, noting that no bids had been received for this project. The Agency's rehab person went out, took the work to be done, and broke it down into pieces and then talked to individual contractors to see what they would do it for. He said the Agency had in-house expertise that could guide the Redevelopment effort, Ms. Charlene Sumpter, and in the process could save some money. He said staffs recommendation was to authorize staff to negotiate with the various contractors as listed in the staff report for the rehabilitation of the Santa Rosa Apartments. Member Crites stated that the Agency was, in essence, being the general contractor. He asked whether staff was convinced that the Agency was ready to do this. Ms. Sumpter responded that several estimates had been received on the different components of the rehabilitation and that she felt confident it could be done. Chairman Benson stated that Ms. Sumpter had made a presentation the previous day at the Housing Committee meeting, and the Committee was very supportive of going ahead with this. Member Ferguson asked if there were other examples of projects of this magnitude where the City has in effect been the general contractor. Mr. Ortega stated there was a similar one where no bids were received because of time constraints, and the City negotiated in a similar fashion, and that was the construction of the parking lots, although in that case there was a general. Ms. Sumpter added that through negotiations with RPM, the property management company for the properties taken over from the Housing Authority, she had met with their team of experts and had them go over her estimates and review any additional cost savings. She said they felt as though we actually had some savings in this final figure. Member Ferguson stated that as he recalled, RPM had done $56 million worth of rehab work themselves. He asked whether they had had any interest in bidding on this project. Ms. Sumpter responded that staff did not want to confuse the two issues with them. However, they did say they would be willing to work with her on perhaps some of the key issues such as grading and roofing. Member Ferguson asked what were the various reasons why we could not get bidders. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Ms. Sumpter responded that she felt the scope of the work in relationship to where the apartment building is located was a bit overexaggerated. She said she had basically taken the building and the plans apart and come up with alternative ways to maybe not demolish all of the interior lath and plaster and go through the cost of the dump fees, etc. She said she had downsized it and had still come up with a very nice product. Member Ferguson asked whether staff had gone back out to bid after the downsizing. Ms. Sumpter responded that this had gone out to several contractors, and their bids were still high. She said she continued to negotiate with specific contractors in their specific trades, such as plumbers, roofers, general contractors who could handle electrical, etc. She said she realized there were significant savings there because of the prevailing wage. She said if a general contractor were to assume responsibility for that, they would have to pay prevailing wages, and that increases the project substantially; however, if we deal directly with speciality contractors, they can handle the prevailing wage situation better. Mr. Ortega noted that Ms. Sumpter was a general contractor herself although she did not have an active license at this point. He said she had coordinated projects of this type in the past. Member Ferguson stated that the City had been accused in the past of undertaking things where people questioned our expertise, particularly in the construction area, and if no one in the private sector will touch this for less than $800,000, what makes us think we're so sharp with our pencil that we can do it for $593,000? He asked what it is that they see that we don't see. Mr. Ortega stated that the main problem with the rehab of an older building is that they have a hard time grasping really what it is that needs to be done until it is torn apart. They, therefore, tend to err on the side of having to do more work than is being called for just because once you tear down a wall you don't know what you're going to find and yet they're already hooked in for a total lump sum contract. He said it is very hard to bid an overall rehab for an older building because they do not know what they're going to find. He said another reason is that construction activity has picked up, and why should a contractor come in a bid on something that is difficult to determine what it will cost. He said on the other hand, that is why when the Agency was looking for a rehab manager, staff looked for someone who had specific experience in construction. He said he disagreed that we don't have the expertise and said he felt we do have the expertise. He said the Agency hired a person with that expertise, and that is Charlene Sumpter. Member Ferguson asked if she was hired with this in mind. Mr. Ortega responded that she was hired for the HIP program. On the other hand, part of that program will involve the rehab of old houses, some of which will need a new roof, some of which will need a determination regarding replacement of old wiring, etc. He said the Agency was doing the same type of rehab in the HIP program. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Ms. Sumpter stated that when she contacted the general contractors, she had a meeting at the Santa Rosa Apartments. She said she opened the specification books and the set of construction drawings and went through them item by item, gaVe them the opportunity to ask her any questions, made sure they understood the scope of the work, expressed her ideas about some of the changes that she wanted to make, and understood that every contractor who would give her a bid would give her a bid that was broken down into details such as windows, cabinetry, etc. She said they understood the project and understood what she was asking. She said this took it from an $800,000 project down to where it should be. She said that given the project's location, if we spent a million dollars on that rehab, we would be over budgeted for the location of that building given what we paid for it. She said currently if the Agency is able to do this project for the amount requested, and she felt it was able to do so, there will be approximately $300,000 worth of equity. Member Ferguson stated that this was assuming that we don't find things behind torn down walls that we didn't expect. Ms. Sumpter agreed. Councilman Crites moved to, by Minute Motion, authorize staff to negotiate with the various contractors regarding the rehabilitation of the Santa Rosa Apartments located at 73-625 Santa Rosa Way; and — appropriate $593,222.70 from unobligated 20% housing set -aside funds to cover the rehabilitation costs (Contract No. R13320). Motion was seconded by Kelly and carried by a 3-1 vote, with Member Ferguson voting NO. IX. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted that the Agency had closed its bond issue and purchased 725 units from the County Housing Authority. He said they were now being managed pursuant to a management contract. He said the whole transaction went very smoothly. B. AGENCY COUNSEL Mr. Ortega noted the items listed on the Agenda for Closed Session. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 *********************************s*******************s* Request for Closed Session: 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: Agency: Property owner: Under negotiation: 74039 San Marino Circle Palm Desert, CA 92260 Carlos L. Ortega Ray Winner X Price X Terms of payment 74047 San Marino Circle Palm Desert, CA 92260 Carlos L. Ortega Gary and Norma Tryon X Price X Terms of payment APN 624-071-026 Carlos L. Ortega/Teresa LaRocca Howard Marguleas X Price X Terms of payment C. CHAIRMAN AND MEMBERS OF THE AGENCY Member Crites stated he had received a memorandum from Community Arts Manager John Nagus relative to the Allan Root fencing on the Desert Willow North Course. He said it was the Agency's direction to do the same thing on the South Course to make it consistent. He said the question from Mr. Nagus was that they were about $55,000 short in the allocated Art -In - Public -Places budget for doing that. He asked that Mr. Ortega sit down with Mr. Nagus to see if he can find a way to do this. He said he did not want to raid another project to get it done. Member Kelly stated that he felt it was extremely important to present something as people drive by that looks nice. He stated that Palm Desert Greens had redone its Monterey Avenue side, which now looks much better, and he hoped they were considering doing something on the east side. He suggested that a complimentary letter be sent to them about the work they did on the Monterey Avenue side. Mr. Ortega stated that the bid that was authorized for the South Course did include the extra view windows that the Agency Board authorized at the last meeting. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY FEBRUARY 12, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * X. AWARDS, PRESENTATIONS, AND APPOINTMENTS NOTE: THE FOLLOWING ITEM WAS LISTED ON AN AGENDA ADDENDUM POSTED 72 HOURS PRIOR TO THE MEETING. A. CONSIDERATION OF APPOINTMENTS TO HOUSING AUTHORITY ADVISORY COMMI i i gym. Member Kelly moved to, by Minute Motion, appoint Roger Dash and Ben Kurtz to the Housing Advisory Committee. Motion was seconded by Crites and carried by unanimous vote. XI. PUBLIC HEARINGS None XII. ORAL COMMUNICATIONS None XIII. ADJOURNMENT Upon motion by Crites, second by Kelly, and unanimous vote of the Agency Board, Chairman Benson adjourned the meeting at 5:55 p.m. to Closed Session. She reconvened the meeting at 7:05 p.m. and immediately adjourned the meeting to 1:30 p.m. on Tuesday, February 17, 1998. Cja-/ SHEILA R. GILLIGAN, SEC PALM DESERT REDEVEL ARY NT AGENCY M. BENSON, CHAIRMAN 7