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Home My WebLink About2001-08-23MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, AUGUST 23, 2001 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER Chairman Ferguson convened the meeting at 4:02 p.m. II. PLEDGE OF ALLEGIANCE - Member Buford A. Crites 111. INVOCATION - Member Robert A. Spiegel IV. ROLL CALL Present: — Member Jean M. Benson Member Buford A. Crites Vice Chairman Richard S. Kelly Member Robert A. Spiegel Chairman Jim Ferguson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Richard J. Folkers, ACM for Development Services Homer Croy, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Teresa La Rocca, Director of Housing Martin Pinon, Director of Human Resources Joseph S. Gaugush, Director of Public Works/City Engineer David Yrigoyen, Director of Redevelopment Rachelle D. Klassen, Deputy City Clerk MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 V. ORAL COMMUNICATIONS MR. & MRS. NEIL LINGLE, Palm Desert, expressed their profound gratitude for the City's expressions of sympathy at the recent loss of their oldest son. MR. RAY ALLEY, Desert Hot Springs, CA, addressed the City Council relative to its consideration of the Valley -wide animal shelter proposal that would be forthcoming. VI. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VII. CONSENT CALENDAR A. MINUTES of the Regular Meetings of the Redevelopment Agency of July 12, July 26, and August 9, 2001; and the Adjourned Meeting of the Redevelopment Agency of July 19, 2001. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 4RDA, 5RDA, 6RDA, 7RDA, 9RDA, 10RDA, 11 RDA, 12RDA, 15RDA, 16RDA, 4-Housing, 5-Housing, 7-Housing, 9-Housing, 11-Housing, 15-Housing, 16-Housing, 6HA, 7HA, 11 HA, and 15HA. Rec: Approve as presented. C. AGENCY'S PORTFOLIO MANAGEMENT SUMMARY for the Months Ending May 31, and June 30, 2001. Rec: Receive and file. D. REQUEST FOR APPROVAL of Authorized Broker -Dealers Pursuant to the City of Palm Desert/Palm Desert Redevelopment Agency Investment Policy (Joint Consideration with the Palm Desert City Council). Rec: By Minute Motion, approve: 1) Continued retention of Bank of America Securities, Wells Fargo Institutional Securities, Merrill Lynch, Morgan Stanley, and Smith Barney as broker -dealers; 2) the dismissal of Chase Securities as a broker -dealer. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 Upon motion by Spiegel, second by Kelly, the Consent Calendar was approved as presented by a 5-0 vote. VIII. CONSENT ITEMS HELD OVER None IX. RESOLUTIONS None X. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO REIMBURSE DESERT WILLOW RESORT FOR CERTAIN MAINTENANCE AND REPAIR COSTS ON AGENCY'S PROPERTY AT DESERT WILLOW. Mr. Ortega noted the staff report in the packets. Member Spiegel moved to: 1) By Minute Motion, authorize staff to reimburse Desert Willow Resort for certain costs of maintenance and repairs on Agency's property at Desert Willow in the amount of approximately $80,000; 2) by Minute Motion, appropriate said costs from the Unobligated Project Fund to Account No. 851-4619-433-4001 for the year 2000/01; 3) waive further reading and adopt Resolution No. 423, authorizing reimbursement to Desert Willow Resort to cover costs of the maintenance on Agency - owned land. Motion was seconded by Kelly and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF FURTHER APPROPRIATION TO AND AGREEING TO TERMS OF SAME FOR THE REDEVELOPMENT REVOLVING LOAN FUND (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Ortega reviewed the staff report and offered to answer any questions. Councilman/Member Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 01-94, making a further appropriation to the Redevelopment Revolving Loan Fund; 2) Redevelopment Agency Resolution No. 424, agreeing to the terms of a resolution of the City Council of the City of Palm Desert, California, making a further appropriation to the Redevelopment Revolving Loan Fund. Motion was seconded by Benson and carried by a 5-0 vote. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 C. REQUEST FOR APPROVAL OF CONTRACT FOR CIVIL ENGINEERING SERVICES FOR THE 40-ACRE SITE (CONTRACT NO. R19300). Mr. Ortega noted the staff report in the packets and offered to answer any questions. Member Benson moved to, by Minute Motion: 1) Approve the subject contract with Mainiero, Smith and Associates, Inc., Palm Springs, California, in an amount not to exceed $180,750; $6,000 of reimbursables; plus 10% contingency to prepare the final parcel map, perform final engineering design services, and to manage the bidding and construction of the civil infrastructure and improvements for the Hovley Garden Apartments and the 22.38-acre single-family housing portion of the overall site; 2) authorize the Chairman to execute same. Motion was seconded by Benson and carried by a 5-0 vote. D. REQUEST FOR APPROVAL OF PROJECT MANAGEMENT AND DESIGN SERVICES FOR THE CIVIL WORK AND INFRASTRUCTURE AT THE 12-ACRE SITE. Chairman Ferguson noted that this is the 12-acre site at El Paseo and Highway 111 owned by the City of Palm Desert. Mr. Ortega reviewed the staff report and offered to answer any questions. Vice Chairman Kelly moved to, by Minute Motion, approve the following for professional services to develop the 12-acre parcel at the corner of west El Paseo and Highway 111: 1) Contract No. R19310 in the amount of $114,900, reimbursables in the amount of $5,000, and authorize a 10% contingency with The Keith Companies, Palm Desert, California, for design of the civil improvements, post design services, and construction staking services for the subject project and authorize the Chairman to execute same; 2) Contract No. R19320, in the amount of $72,500, reimbursables in the amount of $2,000, and authorize a 10% contingency with Allan Levin Associates, Palm Desert, California, for project management of the design, bidding, and construction of the civil work and infrastructure for the subject project and authorize the Chairman to execute same. Motion was seconded by Benson and carried by a 5-0 vote. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 XI. CONTINUED BUSINESS A. CONSIDERATION OF MEMBERSHIP PROVISIONS OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY AND FRIENDS OF THE CULTURAL CENTER, INC. (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL) (Continued from the meetings of June 28, and July 19, 2001). Mr. Ortega reviewed the staff report, noting that the agreement had been finalized, the funds had been transferred, and the lease had been concluded. However, the Council/Agency Board had indicated it wanted this item brought back for possible reconsideration of appointments to several boards at the McCallum Theatre. Councilman/Member Spiegel stated that he was supportive of the money given to the McCallum to keep it in business. However, he expressed concern that having a member of the City Council and the City Manager or his designee as voting members of the Board might place the City in an awkward position if times get tough again and if the McCallum Theatre was to request additional funds. He said he would still be supportive of the McCallum's student activity programs, and he did feel someone from the City should be involved in what is going on at the McCallum. He suggested amending the agreement so that, rather than having the City Manager on the Board, the City Treasurer should attend the meetings, not as a voting member but just to be present and be aware of the financial status of the McCallum Theatre. In addition, instead of having a Councilmember as a "Council designee," that person could be a Councilmember or someone else, much the same as with the Joslyn Senior Center. Mayor Pro-TemNice Chairman Kelly agreed with Councilman/Member Spiegel. He said he did not have a problem with the City having a Councilmember on the Board; however, he felt when it is written into the contract as a requirement, as in Sections 3.1.4 and 3.1.5, the City would be taking on part of responsibility of running the McCallum Theatre. Then if something goes wrong, and the Theatre is not run properly and does not make money, the City would be part of the obligation as well. He said he did not think this should be written into the agreement as a requirement. Mayor/Chairman Ferguson stated that when the City first began assisting the Theatre in 1995, there was an issue about whether the City was appointing someone to the McCallum Board or if the McCallum Board was inviting someone from the City to serve on its Board. He said he thought there was a critical distinction that the person who sits on that Board was not a formal 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 appointment by the City Council but was rather serving at the pleasure of the McCallum Theatre. Mr. Erwin responded that Chairman Ferguson was correct, and the decision was made that the appointment to the McCallum Board from the City Council would be designated by that Board rather than the Council, and the reason was because of the Brown Act. Mayor/Chairman Ferguson stated that as to the Foundation Board, it was his understanding that the requirements are written such that the money that was given by the City will sit in a non -invadable trust corpus and do nothing but generate interest, and if it ever is invaded or the City's money is ever spent, that triggers a whole series of forfeitures and rights and remedies that the City has as to its money. He said for that reason, he felt the City needed someone on the Foundation Board, although he agreed with Mayor Pro- TemNice Chairman Kelly's concerns with including the requirement as to the full Board. Councilman/Member Spiegel suggested that this matter be continued to the next meeting in order for the City Attorney to review these issues. Councilman/Member Crites stated that he would like the City Attorney to respond to the issue about whether or not Sections 3.1.4 and 3.1.5 actually trigger some liability. He also suggested the following wording for Section 3.1.4: "Center is encouraged to invite a member of the City Council or its designee to serve..." He also suggested that the City Attorney look at City Council representation on other local entities such as the Chamber of Commerce Board of Directors. Councilman/Member Spiegel moved to continue this matter to the meeting of September 27, 2001, with the City Attorney to review: 1) Sections 3.1.4 and 3.1.5 for potential liability issues; 2) suggested wording for Section 3.1.4, "Center is encouraged to invite a member of the City Council or its designee to serve...;" 3) a consistent policy for City Councilmembers' representation on other local entities (e.g. Palm Desert Chamber of Commerce Board of Directors, etc.) Motion was seconded by Crites and carried by a 4-0-1 vote, with Councilmember/Member Benson ABSTAINING. XII. OLD BUSINESS None 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 XIII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE SALE OF MOBILE HOME LOT NO. 131 (APN 622-351-131-6) LOCATED AT 43-155 PORTOLA AVENUE (PORTOLA PALMS MOBILE HOME PARK) AT FAIR MARKET VALUE (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Ortega reviewed the staff report and offered to answer any questions. Mayor/Chairman Ferguson declared the public hearing open and invited testimony in FAVOR of or in OPPOSITION to this request. With no testimony offered, he declared the public hearing closed. Councilmember/Member Benson moved to waive further reading and adopt: 1) City Council Resolution No. 01-95, authorizing the Palm Desert Redevelopment Agency to sell mobile home lot number 131 located at 43-155 Portola Avenue (Portola Palms Mobile Home Park) at fair market value; 2) Redevelopment Agency Resolution No. 425, making the finding that the sales price for the subject lot is not less than its fair market value in accordance with the highest and best use under the Redevelopment Plan for Project Area No. 1 Amended. Motion was seconded by Kelly and carried by a 5-0 vote. XIV. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 653-370-004 Negotiating Parties: Agency: Carlos L. Ortega/Dave Yrigoyen Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 23, 2001 2) Property: APN 620-370-001 Negotiating Parties: Agency: Dave Yrigoyen/Palm Desert Redevelopment Agency Property Owner: Bernice Pauahi Bishop Estate Charitable Trust Under Negotiation: x Price x Terms of Payment Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) City of Orange, et al. v. Alabama Treasury Advisory Program, et al., Los Angeles Superior Court Case No. BC 106 461 b) City of Palm Springs v. All Persons Interested, Riverside County Superior Court Case No. INC 051124 C. CHAIRMAN AND MEMBERS OF THE AGENCY None XV. ADJOURNMENT Upon motion by Spiegel, second by Crites, and unanimous vote of the Agency Board, Chairman Ferguson adjourned the meeting to Closed Session at 7:07 p.m. Vice Chairman Kelly reconvened at 8:20 p.m. and immediately adjourned with no action announced from Closed Session. ATTEST: ON, CHAIRMAN RACHELLE D KLASSEN, ASSISTANT SECRETARY TO THE PALM DESERT REDEVELOPMENT AGENCY 8