Loading...
HomeMy WebLinkAbout1998-06-25MINUTES — REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JUNE 25, 1998 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Benson convened the meeting at 4:06 p.m. H. PLEDGE OF ALLEGIANCE - Vice Chairman Robert A. Spiegel III. INVOCATION - Chairman Jean M. Benson 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, RDA Executive Director Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk John M. Wohlmuth, ACM/Director of Administrative Services Patrick Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Joseph S. Gaugush, Engineering Manager David Yrigoyen, Redevelopment Agency Manager Teresa LaRocca, Housing Programs Coordinator John Nagus, Community Arts Manager Rachelle D. Klassen, Records Technician MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * V. ORAL COMMUNICATIONS MS. FAY MCGRATH, 42230 Tennessee Avenue, Palm Desert, stated she and her husband were residents of the Palm Desert Country Club area on the western side. She stated that they were not required to belong to the Homeowners' Association nor were they permitted to sit on the Board; therefore, she said they sometimes felt they lacked representation. She said there were two items she wanted to address, the first being the landscaping at the corner of Fred Waring Drive and California. She said this was the corner which belonged to the City, now occupied by the water company with some sort of pumping station there, an unsightly fence, and the corner was virtually unlandscaped. She stated she had spoken with Mr. Folkers, Mr. Gaugush, and the landscaper Mr. Johnson, regarding the property. She said she felt all agreed that it was an unsightly corner which belied the quality of the area there. She said she believed the realtors who showed property there would probably also agree. She asked that some consideration and attention be given to this matter. She said her second item of concern was in regard to unfenced swimming pools in the area. She said she and her husband purchased a home there because they liked the lifestyle, it was an ungated community, and the fact that families with children were present. She said she, as well as some of her neighbors, were appalled to find out there were a number of unfenced swimming pools in the area with easy public access. She said they had been informed that the swimming pools were unfenced because they were grandfathered in when the Country Club was annexed into the City; however, this grandfather clause did nothing to protect our citizens nor our children. She said they appreciated the attentions which had been given to Hovley and to the runoff water in the gutters there, but she asked that consideration also be given to the aforementioned matters. Mayor Benson said staff had noted the concerns and would be checking into them. VI. CONSENT CALENDAR A. hEilM of the Regular Meeting of the Redevelopment Agency of June 11, 1998, and the Adjourned Joint Meeting of the City Council/Redevelopment Agency of June 9, 1998. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 59RDA and 6ORDA. Rec: Approve as presented. C. PORTFOLIO MASTER SUMMARY for the Period Ending April 30, 1998. Rec: Receive and file. Upon motion by Spiegel, second by Kelly, the Consent Calendar was approved as presented by a 4-0-1 vote with Member Crites ABSENT. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION OF PAYMENT FOR SERVICES RELATED TO THE SALE OF 11.3 ACRES AT DESERT WILLOW. Mr. Ortega noted the report which was provided the Agency Board. He stated that letters from all of the parties involved had been received confirming the amounts as satisfactory and that staff asked for approval of the payment. Vice Chairman Spiegel asked who the Realty Advisors Group was. Mr. Yrigoyen responded that Realty Advisors Group was from Santa Ana, California, they were originally utilized by Marriott to make the initial contact and the other parties became involved following. Vice Chairman Spiegel asked if this meant that Marriott was also paying a stipend for the transaction. Mr. Yrigoyen replied they were not; it was an aspect of the negotiation process. Member Ferguson moved to, by Minute Motion: 1) Authorize payment totaling $152,450.00 to the following brokers involved in the transaction for the sale of 11.3 acres at Desert Willow-- Baxley Properties in the amount of $50,816.66; Realty Advisors Group in the amount of $50,816.66; Bartlett Commercial in the amount of $50,816.66; 2) authorize the appropriation of $152,450.00 from the Agency's Unobligated Funds for Project Area No. 2. Motion was seconded by Spiegel and carried by a 4-0-1 vote with Member Crites ABSENT. B. REQUEST FOR AUTHORIZATION FOR SOUTH SIDE HOVLEY LANE WALLS PROGRAM. Mr. Ortega noted the report provided to the Agency Board and stated that Mr. Yrigoyen would be providing specific details. He said in regard to Ms. McGrath's comments at the beginning of the meeting concerning landscaping, this had been made a part of the budget which was agendized for this meeting during the Public Hearings portion. He stated the subject program also involved some of the issues for improvements being recommended for Project Area No. 4. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Yrigoyen displayed a drawing of the subject area walls. He stated the Project Area No. 4 Committee met to discuss several priorities considered for expenditure of a bond issue done for the Area. He said many of the projects identified by the Committee as priority were enumerated in the budget. He went on to say that one of the issues highlighted was providing for walls along both Hovley Lane and Fred Waring Drive, and the Committee met solely to discuss solutions for handling the wall. He stated that the initial budget submitted included a recommendation which provided alternatives for solutions to the wall issue. He said Option "A" was to complete the entire wall, and if the Agency Board approved this policy, the cost would be $175,000.00 for the Hovley Lane wall and $250,000.00 for the Fred Waring Drive wall reconstruction. He said the Project Area No. 4 Committee then appointed a subcommittee which further discussed the options, and one of the recommendations of the subcommittee was development of a second option to have an engineer analyze the walls to identify those which required immediate reconstruction and those which could remain. He said their recommendation further asked the Agency Board to budget an amount for walls which needed immediate reconstruction. He stated the Committee provided its recommendation in a letter to the Agency Board, and staff met with both the Committee and the Subcommittee to identify issues with regard to replacing the walls and doing so on private property. He said staff recommended instituting a loan program for the affected owners in the identified location whose property had its rear border on Hovley Lane or Fred Waring Drive and wished to replace their walls. He said that through the projects list before the Agency Board at this meeting, aesthetics -enhancing landscaping would also be provided to conceal the walls. He asked for Agency Board approval of staffs development of a loan program through the Home Improvement Program and through other means deemed necessary to assist these owners and provide landscaping. He noted two members of the Project Area No. 4 Committee were present in the audience to answer questions from the Agency Board. Member Ferguson asked what measures had been developed for ensuring uniform participation by residents in the loan program. Mr. Yrigoyen stated that the area had been canvassed for its interest in home improvement loans but that a response had not yet been received. He said the Project Area No. 4 Committee and staff had considered utilizing Code Enforcement to inspect the walls; the issue there being that the walls had been grandfathered and uniform replacement could not be required. He said, in fact, one of the Committee members commented that it could not be expected that the walls would be uniform. Vice Chairman Spiegel stated he and Councilman Kelly were Council liaisons to the Project Area No. 4 Committee and noted a couple of concerns. He said the first being unstable walls which need to be replaced, and through Code Enforcement efforts, it was expected the walls would be replaced with low income loans. He noted the second, as Mr. Yrigoyen suggested, was that the walls were not uniform, nor could they be made so. He said if new walls were to be built for everyone, then this same action would need to be taken everywhere in the City where it was felt new walls should be built, and this was impractical. However, he said the landscaping on the outside of the wall was the City's responsibility, and the objective was to 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * first make the walls sound and then to provide uniform landscaping which would hide any differences from one wall to the next. Member Ferguson asked if the proposed residential loans were means tested (i.e. thresholds of income levels for applicants). Mr. Yrigoyen responded affirmatively, and that those in the target groups were being sought at this time should the Agency Board direct staff to set up and market a loan program. Member Ferguson asked whether the existing Home Improvement Program included monies for improvement of perimeter walls. Mr. Yrigoyen stated applicants for the Home Improvement Program had to qualify under an income criteria. He said in the subject program for this particular residential area loans would be made available regardless of income or other qualifications. He reiterated the utilization of Code Enforcement staff to inspect the walls, calling the Agency Board's attention to an engineer's report included in the packet which analyzed the walls including those outside the Palm Desert Apartments area which identified them as not to code-- they were four -inch block walls, retaining walls which would ultimately fall. Member Ferguson asked for clarification of the fact that the loan program proposed was one _ for which applicants had to qualify by being in a low income category, or if anyone along this street could apply for the loan without being means tested. Mr. Yrigoyen stated it was the latter-- it was available to everyone. Chairman Benson asked if there was any cost estimate for doing the wall at one time, prorating it per household along the street. Mr. Yrigoyen stated the overall cost would be $175,000.00 to improve those residential walls and that the ultimate cost could be prorated. Chairman Benson stated if there wasn't a big difference between fixing one yard at a time and doing the whole thing prorated on a loan program, she felt it would look better done at once. Vice Chairman Spiegel also suggested that an assessment district could be established; however, the Committee saw a problem with the City then having to get involved in all the walls throughout the City. Chairman Benson said she felt if a uniform wall was established there, then an overall average wall size was determined, and assessment made to all the owners equally, the City could put in the difference-- same as was done for landscaping. Member Ferguson added he felt it would be more cost effective to do one wall one time rather than doing it in sections. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly stated a problem may lie in the fact that some people had good walls, and they would not want to pay their portion of $175,00.00. He added he foresaw difficulty forming an assessment district and reaching agreement for everyone to construct one wall. Chairman Benson said she did not concur with an assessment district either; however, she didn't recall very many good walls along there. Mr. Yrigoyen stated there were two or three good walls. Member Ferguson stated he perceived that the Agency Board was generally in favor of improving the walls in this vicinity and felt he and Chairman Benson preferred doing it all at once to save on cost. He added if some had good walls, perhaps their structures could be amortized to provide a reduced repayment plan. He asked if this was a request for authority to create the loan program. Mr. Yrigoyen said direction was being requested from the Agency Board to create the loan program and to authorize staff to work with the residents to improve their walls. Member Ferguson moved to, by Minute Motion, authorize the establishment of a loan program for the replacement of the walls on an individual basis and provide landscape treatment of the wall on south side of Hovley Lane with the condition that staff was directed to return to the Agency Board with the plan for greatest uniformity. Motion was seconded by Benson and carried by a 4-0-1 vote with Member Crites ABSENT. C. TRANSFER OF INTRAWEST PROJECT TO AN AFFILIATE. Mr. Ortega noted this was an informational item for the Agency Board. He said there was also a letter from the Agency's legal counsel and pointed out that the background was reviewed by the subcommittee, was then recommended to the Investment Committee who made recommendation to the Agency Board. Member Kelly moved to, by Minute Motion, approve the transfer. Motion was seconded by Spiegel and carried by a 4-0-1 vote with Member Crites ABSENT. X. CONTINUED BUSINESS None XI. OLD BUSINESS None 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Ortega noted the requested items for Closed Session, as well as the addendum which added two items. He also noted the Public Hearing for this meeting regarding the budget. B. AGENCY COUNSEL 1) Request for Closed Session: 2) Report and Action on Items from Closed Session Made at This Meeting. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Land located in Section 4 - Desert Willow Negotiating Parties: Agency: Palm Desert Redevelopment Agency/Carlos L. Ortega, Executive Director Property Owner: Palm Desert Redevelopment Agency Under Negotiation: g Price g Terms of Payment — NOTE: THE FOLLOWING ITEM WAS POSTED ON AN AGENDA ADDENDUM POSTED 72 HOURS PRIOR TO THIS MEETING. 2) Property: 73-625 Santa Rosa Way Negotiating Parties: Carlos L. Ortega/Teresa La Rocca Agency: Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: g Price �. 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 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NOTE: THE FOLLOWING ITEM WAS POSTED ON AN AGENDA ADDENDUM POSTED 72 HOURS PRIOR TO THIS MEETING. Public Employment pursuant to Government Code Section 54957: Title of Position: Executive Director C. CHAIRMAN AND MEMBERS OF THE AGENCY None XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS None With Agency Board concurrence, Chairman Benson adjourned the meeting to Closed Session at 6:12 p.m. She reconvened the meeting at 7:05 p.m. XIV. PUBLIC HEARINGS A. CONSIDERATION OF ADOPTION OF CITY MANAGER/REDEVELOPMENT AGENCY EXECUTIVE DIRECTOR PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 1998/99 (JOINT PUBLIC HEARING WITH THE PALM DESERT CITY COUNCIL AND PALM DESERT HOUSING AUTHORITY). Mr. Gibson stated a number of resolutions were being presented including those for the City, the Redevelopment Agency, and the Housing Authority to adopt their respective budgets including the salary table and classification of positions in the various departments. He noted there were a number of changes including those requested by Council at the Study Session. He noted one of those was attorney costs for the Wymer litigation for which Marty Mueller from Best, Best & Krieger had done a listing of the various costs from pretrial through the actual trial. He said the range was from $350,000.00 - $450,000.00, and the high end was placed into the budget. He called attention to an updated sheet he handed out with a number of continued appropriations from existing capital projects and that the majority of them were added at the very bottom of the last page of the handout. He said after staffs review of the Desert Willow budget numerous times, final revenue projections were $5,895,216.00 with expenditures of $5,805,196.00 for approximately $90,000.00 on the positive side versus the original figures. He stated that in the Capital Project listing, the Joni Drive project had been changed from a Project Area No. 3 project to a Measure "A" project. He added that the General Fund was approximately $700,000.00 on the plus side for revenues versus expenditures. Councilman/Member/Commissioner Ferguson stated that with regard to the Redevelopment Agency staffing request, during Closed Session the Executive Director had been asked for some restructuring and a report back to the Council/Agency Board. He said he did not believe 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * the report had been delivered. He said he would be in favor of the remainder of the budget's adoption excepting the Redevelopment Agency staffing changes. Mayor/Chairman/President Benson declared the public hearing own and invited testimony in FAVOR of or OPPOSED to the item. With no testimony offered, she declared the public hearing closed. Mr. Wohlmuth noted that in the salary schedule/resolution for personnel there were a few minor typographical errors which required correction. He stated the corrected version would be presented to Council at its meeting of July 9, 1998. Mayor Pro-TemporeNice Chairman/Vice President Spiegel asked whether the Outside Agency Funding changes discussed had been made. Mr. Gibson responded that all the items which Council had requested be changed were reflected as the numbers presented in total. Councilman/Member/Commissioner Ferguson moved to: 1) Waive further reading and adopt Resolution No. 98-72 adopting a City program and financial plan for the fiscal year July 1, 1998, through June 30, 1999; 2) waive further reading and adopt Resolution No. 98-73 establishing the appropriations limit for the 1998/99 fiscal year; 3) waive further reading and adopt Redevelopment Agency Resolution No. 360 adopting a Redevelopment Agency program and financial plan for the fiscal year July 1, 1998, through June 30, 1999, with the exception of the personnel promotions portion of the plan until report of the Executive Director is received; 4) waive further reading and adopt Housing Authority Resolution No. HA-5 adopting a Housing Authority program and financial plan for the fiscal year July 1, 1998, through June 30, 1999; 5) waive further reading and adopt Resolution No. 98-74 setting the salary schedule, salary ranges, and allocated classifications with the exception of the Redevelopment Agency personnel promotions until report of the Executive Director is received. Motion was seconded by Spiegel and carried by a 4-0-1 vote with Councilman/Member/Commissioner Crites ABSENT. 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XV. ADJOURNMENT Upon a motion by Spiegel, second by Ferguson, and 4-0-1 vote of the Redevelopment Agency Board with Member Crites ABSENT, Chairman Benson adjourned the meeting to Closed Session at 7:17 p.m. She reconvened the meeting at 9:10 p.m. with no action announced from Closed Session and immediately adjourned to an adjourned joint meeting of the City Council and Redevelopment Agency to be held Thursday, July 9, 1998, at 2:00 p.m. for the purpose of holding a Closed Session. ATTEST: ,SHEILA R. GILL AN, SEC Ph LM DESERT REDEVELO RY TO THE NT AGENCY N M. BENSON, CHAIRMAN 10