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HomeMy WebLinkAbout1998-01-08MINUTES — REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JANUARY 8, 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 Vice Chairman Robert A. Spiegel Chairman Jean M. Benson Also Present: Carlos L. Ortega, Executive Director Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Agency Secretary Richard J. Folkers, ACM/Director of Public Works John Wohlmuth, ACM/Director of Administrative Services Pat Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul Gibson, Finance Director/City Treasurer Teresa LaRocca, Housing Programs Coordinator Mary P. Gates, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of December 11, 1997, and the Adjourned Meeting of the Redevelopment Agency/City Council of December 16, 1997. Rec: Approve as presented. MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 29RDA, 3ORDA, 31RDA, 33RDA, 29DR, 30DR, 31DR, and 33DR. Rec: Approve as presented. C. PORTFOLIOPDRIEQUQ_MASZERMIMMARY for the Month of November 1997. Rec: Receive and file. D. REQUEST FOR APPROVAL. of Change Order No. 1 to Contreras Construction (Contract No. R13470) for Improvements to the Parking Lot, Etc. Rec: By Minute Motion, approve Change Order No. 1 to the contract with Contreras Construction (Contract No. R13470) in the amount of $8,379.00 for improvements to the parking lot at Highway 74 and Highway 111 and authorize the transfer of such amount from contingency to base. E. REQUEST FOR APPROVAL of Affordable Housing Agreement - Building Horizons Rec: By Minute Motion: 1) Approve an affordable housing agreement by and between the Palm Desert Redevelopment Agency and Building Horizons, Inc. (Contract No. R13720), 2) approve the acquisition of 30-year affordability covenants on each of the two homes to be constructed by Building Horizons for an amount not to exceed $60,000 ($30,000 per home; 3) authorize a short-term construction loan to Building Horizons in the amount not -to -exceed $150,000 ($75,000 per home) at zero interest rate to be repaid upon close of escrow on each of the two homes to be constructed; 4) authorize Agency mortgage buy down assistance in the form of a second trust deed, not to exceed $40,000 per household, at 3 percent interest rate for a term of 30 years, to qualified buyers of lower income for each of the two homes; and 5) authorize an appropriation of $290,000 to be set aside from Unobligated Housing Funds for the purpose of funding this program ($60,000 covenants plus $150,000 loan plus $80,000 mortgage buy down equals $290,000). Upon motion by Spiegel, second by Kelly, the Consent Calendar was approved as presented by unanimous vote of the Agency Board. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * None VI. NEW BUSINESS None VII. CONTINUED BUSINESS None VIII. OLD BUSINESS A. REQUEST FOR APPROVAT. of Contract with College of the Desert to Provide Support Services for the Establishment of the Cook Street Business Association (Contract No. R13730). Mr. Ortega noted the report in the packets and stated that Economic Development Manager Paul Shillcock was available to answer any questions. Member Spiegel stated that this matter had been discussed by the Economic Development —" Advisory Committee which agreed that if there are enough businesses in the Cook Street area that desire an association, it should be formed. He said the question was whether the businesses want such an association, and he asked if that is what this contract would find out. Mr. Shillcock responded that the contract would be for all services required to bring it right up to the point of presenting the City with the necessary signatures, the 50% plus one required by law, which staff felt was attainable. Member Spiegel asked how soon staff felt this information would be available if this contract was approved, and Mr. Shillcock responded that it would take approximately a month just to gear up, and then it is a matter of preparing materials for distribution, doing site visits, etc. He said he expected that it could be done in four months; if not, it would start to run into the summer months, which caused problems last year. He said he expected to have all of the information to the City by the end of May. Chairman Benson asked what the cost would be. Mr. Shillcock responded that what was proposed was $16,000 plus the 10% overhead to work with the College of the Desert for a total of $17,600. He said this would provide a person for approximately 25 hours per week for the next four months. Member Ferguson asked how many businesses are in that service industrial area, and Mr. Shillcock responded that the last time staff checked, approximately ten months ago, there were 410 businesses. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 ******************************************************* In response to Member Ferguson's concern that it will take four months, 25 hours per week, to find out if 410 people want to form an association, Mr. Shillcock stated that this was to actually gather the signatures and present the documents. He said it might take less, but he was looking at what it took the last time this was attempted. Member Ferguson stated that in going back through the Minutes, Chairman Benson asked if there was a way a letter could be sent from the City before spending that kind of money to see if there was at least initial interest in having those discussions. He asked if there was a reason why this could not be done. Mr. Shillcock responded that this could be done and had actually been done last time with a survey that was sent out by the Chamber of Commerce. He said there was approximately a 13% response received, which was considered good by normal standards, and 95% were in favor. He said that in talking to the business people who volunteered to serve on the steering committee, and the fact that they were out talking to their neighbors, a sample of 100 businesses was done, and over 90% of that sample felt that it would be beneficial to the area and were supportive of it. Member Ferguson asked whether that 90% were willing to each chip in to help fund this association, and Mr. Shillcock responded that they were. He said the amount that was chosen, $150 per year, was done by a survey that was part of that visitation with 100 businesses. Member Ferguson stated he did not have a contract in the packet. Mr. Shillcock stated that he had been instructed to take this matter to the Economic Development Advisory Committee and bring it back to the Council if the Committee approved it. He said the Agency Board had not yet approved the contract and that he had to get the contract from the College. He said if the Agency Board approves the contract, he would start the process and bring it back to the Board within a month. Mr. Ortega stated that the recommendation should be to authorize staff to negotiate a contract and bring it back to the Agency Board for approval. Member Spiegel moved to, by Minute Motion, authorize staff to negotiate a contract with the College of the Desert to provide the services necessary to establish a Cook Street Business Association and bring the contract back to the Agency Board for approval. Motion was seconded by Kelly and carried by a 4-1 vote, with Member Ferguson voting NO. IX. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega stated that there was an item of the Housing Authority that was linked to the Redevelopment Agency and dealt with award of a contract for property management services 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 ******************************************************* for 745 rental units located with the City of Palm Desert. He noted the staff report in the packets. He stated that the first recommendation was for approval of a contract for property management services. He said the second recommendation was for the appropriation of $240,000 from the unobligated 20% Housing Set -aside funds, and this was something that needed to be done by the Redevelopment Agency. He stated that in essence, both the Housing Authority and Redevelopment Agency needed to take action on the second recommendation. Ms. LaRocca reviewed the staff report, noting that six proposals were received as a result of the RFP sent out by staff. She stated that various reviews were done, including staff review of the six proposals (to narrow the field to the top three firms), independent review of the top three firms by a representative of the Housing Authority of the County of San Bernardino, and individual interviews by three members of the Housing Advisory Committee and staff representative. She noted that the three members of the Committee were unable to reach a consensus on which firm to recommend; therefore, the members recommended that the Authority consider conducting its own interviews of the top three firms in order to make a decision. She added that staff was prepared to make its recommendation for consideration by the Authority if so desired. She stated that all three firms were highly qualified, with two having local experience in the Coachella Valley, two of the firms having general contracting experience, and two of the firms being southern California based and one northern California based. She said the proposals had come in at a per door fee at $20.00 per door, $20.95 per door, and $23.00 per door. She noted that all three firms were capable and able to walk into our situation within the next week and begin to transition the properties if selected. Upon question by Member Spiegel relative to the start date, Ms. LaRocca responded that January 15th was the start date, although all firms had indicated the sooner they can get in and start interviewing existing personnel and start transitioning the administration the better. She added that the escrow for the transfer of the real estate was scheduled for January 29th. Upon further question by Member Spiegel relative to having two members of the Authority Board meet and make a recommendation, Ms. LaRocca stated that staff was prepared to make a recommendation on one of the firms at this time. Chairman Benson stated that she had met with Mr. Ortega and Ms. LaRocca earlier in the day and went over the proposals. She said each member of the Housing Advisory Committee liked a different firm. She stated that in going over each of the proposals today, including the one Ms. LaRocca is prepared to recommend, she had relayed her concerns which would be addressed with regard to the financial reporting and opinion of our audit of their financial report, their management ability as far as whether or not the City will get what it pays for it, and not having so many units left in the shuffle. She said the recommendation Ms. LaRocca has seemed to be the best to start off with. Member Crites stated that the Housing Advisory Committee is there to provide advice to the City, and even though the members did not agree with each other, he would like to see what 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * each member's point of view was on each of the firms in addition to the final recommendation. He said it would also be nice to have in grid format information staff gave orally relative to some firms being local and some not, some being southern California based and some not, some being general contractors and some not, etc. Ms. LaRocca stated that the grid prepared as part of the criteria for evaluating the firms included the firms' qualifications, project understanding and approach, project team and references, affirmative action, cost and price, and miscellaneous. She reviewed the staff ratings that were given to each firm as outlined in the staff report. Member Ferguson asked whether the $20 per door was the same as saying $20 per unit, and Ms. LaRocca responded that it was. He questioned where the $240,000 set -aside amount came from. Ms. LaRocca responded that this was a little higher than the average. She said if you take $23 per door, it comes to $223,500, and staff was trying to establish a fund that would be there should it be needed in case of a shortfall in the net operating income. She agreed that it was a little high. Member Ferguson stated that it was 33% in excess of the total management fee. Member Spiegel asked if a problem would be caused by continuing this matter. Ms. LaRocca responded that it would create some great difficulty in the transition. Member Spiegel agreed with Member Crites and did not know that he was in a position to know what is going on. Ms LaRocca stated that staff could bring together those members of the Housing Advisory Committee, perhaps with two members of the Council, as early as tomorrow or Monday and have them express their thoughts and feelings with regard to the three firms. Mr. Ortega agreed and stated that the three members of the Housing Advisory Committee could explain their recommendations and why they made their selection of firms. He stated that staff would like to have someone on board at least two weeks before we take over so they have a chance to go through the books and the projects. Member Kelly moved to direct staff to set up a meeting with the three members of the Housing Advisory Committee and two Councilmembers and authorize them to make a decision. Motion died for lack of a second. Member Ferguson stated that while he was supportive of that idea, he was not sure that legally the Council could delegate the majority vote of the City Council to two members. Mr. Erwin stated that he felt it would be more advisable for the Council to refer this matter to a subcommittee, adjourn the Council meeting, and then have that report back for the entire _ Council act on it. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 ******************************************************* Chairman Benson asked if the Council could approve the firm recommended by staff, subject to the review by this subcommittee. Member Crites stated that what he was hearing was that the Council would have to meet for a brief, non-scheduled meeting. Mr. Erwin stated that this meeting could be adjourned to another time. He added that he would be more comfortable doing that because he had a problem with the Redevelopment Agency taking action to appivpilate that amount of money when the item was not listed on the Agenda. He said the item was on the Housing Authority Agenda but was not listed on the Agenda for the Redevelopment Agency. Member Kelly asked whether the Council could delegate authority to the City Manager, and the Council could still meet with the three firms, vote, and give their recommendations to the City Manager. Mr. Erwin responded that the Council could delegate the authority as long as particular guidelines are given. Member Ferguson concurred but noted that was not what had been proposed. Member Crites moved to, by Minute Motion, authorize the Mayor to appoint two members of the Council to meet as soon as possible with the three members of the Housing Advisory Committee and, if appropriate, to also meet with the applicants and bring back at the earliest possible time a recommendation to the Council, with the Council to at that time either ratify that recommendation or not. Motion was seconded by Spiegel and carried by unanimous vote. Members Crites and Ferguson volunteered to serve in this capacity. B. AGENCY COUNSEL Request for Closed Session: Mr. Ortega noted the item for Closed Session listed on the Agenda Addendum as follows: 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 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY JANUARY 8, 1998 ******************************************************* C. CHAIRMAN AND MEMBERS OF THE AGENCY None R. AWARDS, PRESENTATIONS, AND APPOINTMENTS None XI. PUBLIC HEARINGS None XII. ORAL COMMUNICATIONS None XIII. ADJOURNMENT Upon motion by Crites, second by Spiegel, and unanimous vote of the Redevelopment Agency Board, Chairman Benson adjourned the meeting at 7:15 p.m. to 9:30 a.m. on Tuesday, January 8, 1998. ATTEST: v14, SHEILA R. GILLfGAN, S ARY PALM DESERT REDE . PMENT AGENCY M. BENSON, CHAIRMAN if‘fl'--- 6.frYt.a-r- 8