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HomeMy WebLinkAbout2007-09-13MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, SEPTEMBER 13, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Chairman Kelly convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chairman Jean M. Benson Member Jim Ferguson Member Cindy Finerty Member Robert A. Spiegel Chairman Richard S. Kelly Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs John Rios, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 1) Property: APNs 653-740-001/002/003; 653-370-004/018/028/029/030 Negotiating Parties: Agency: Justin McCarthy/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Carlos L. Ortega/City of Palm Desert; County of Riverside Under Negotiation: x Price x Terms of Payment 2) Property: APN 620-430-024/025 Negotiating Parties: Agency: Justin McCarthy/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Carino & Associates Under Negotiation: x Price x Terms of Payment 3) Property: NEC Frank Sinatra Drive/Portola Avenue Negotiating Parties: Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment Upon motion by Ferguson, second by Spiegel, and 5-0 vote of the Agency Board, Chairman Kelly adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:01 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meetings of August 9, 2007, and August 23, 2007. Rec: Approve as presented. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 23RDA, 25RDA, 29RDA, 34RDA, 36RDA, 38RDA, 42RDA, 45RDA, 49RDA, 53RDA, 56RDA, 60RDA, 26-Housing, 30-Housing, 32-Housing, 36-Housing, 39-Housing, 46-Housing, 50-Housing, 53-Housing, 57-Housing, 61-Housing, 27HA, 31HA, 40HA, 47HA, 51 HA, 58HA, and 62HA. Rec: Approve as presented. C. CITY'S/AGENCY'S COMPLIANCE ANALYSIS and Investment Reports for May 2007 and June 2007 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. D. REQUEST FOR RATIFICATION of Agreement for Professional Services for Appraisal of Residential Property Known as 73-697 Santa Rosa Way (Contract No. R26950). Rec: By Minute Motion, ratify the subject agreement in an amount not to exceed $3,600 (including reimbursables) with Lidgard and Associates, Orange, California, for appraisal of property located at 73-697 Santa Rosa Way, Palm Desert — funds are available in Account No. 850-4195-466-3092. E. REQUEST FOR RATIFICATION of Amendment No. 4 to Contract No. R22340 — Design of a 27-unit Senior Housing Complex (La Rocca Villas) and a Community Room to be Located Between Merle Drive and 42' Avenue, Palm Desert. Rec: By Minute Motion: 1) Ratify Amendment No. 4 in an amount not to exceed $1,500 to the subject contract with Kristi Hanson, Inc., Palm Desert, California, at the established contracted rate for additional substantial completeness review associated with the Resident Services Facility at La Rocca Villas; 2) authorize the Executive Director and Chairman to execute same — funds are available in Account No. 870-4698-466-4001. F REQUEST FOR RATIFICATION of Contract with The Gas Company for Extension of Stubs, Services, Branch Service, and Meters for Phase III of the Falcon Crest Development (Contract No. R23390G). Rec: By Minute Motion, ratify The Gas Company Line Extension contract for Falcon Crest Phase III. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 G. REQUEST FOR ACCEPTANCE OF WORK for Contract No. HA23650 — Exterior Renovations - Phase A - at the Housing Authority Property Known as California Villas (Portrait Homes, Inc., Corona, CA) (Joint Consideration with the Palm Desert Housing Authority). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project as completed. H. REQUEST FOR DECLARATION of Office Furniture from the Redevelopment Manager's and Senior Management Analyst's Offices as Surplus. Rec: By Minute Motion, declare that the Redevelopment Manager's and Senior Management Analyst's existing office furniture as surplus goods and allow staff to donate these furnishings to the Riverside County Sheriffs Station in Palm Desert and to the non-profit Angel View Thrift Mart. Upon motion by Benson, second by Finerty, and 4-0 vote of the Agency Board, with Ferguson ABSENT, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS A. RESOLUTION NO. 543 - A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2006/07 BUDGET AS A RESULT OF YEAR-END ADJUSTMENTS. Member Spiegel moved to waive further reading and adopt Resolution No. 543. Motion was seconded by Benson and carried by a 4-0 vote, with Ferguson ABSENT. IX. NEW BUSINESS A. REQUEST FOR APPROVAL OF THE PALM DESERT STRATEGIC SOLAR PLAN WITH PHASES ONE, TWO, AND THREE (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Ortega stated the partners involved, who are funding the plan, would like to take a look at the proposal and requested the item be continued for two weeks. He offered that staff and consultant were available to answer questions at this time, however. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 Mr. Conlon handed out a spreadsheet to the City Council with regards to the Set to Save' Energy Program showing the current tallies in the different areas of energy efficiency. He noted the program started January 1, 2007, and directed Council to look at the bottom of the spreadsheet report that showed how much money had been spent in incentives for the citizens of Palm Desert. A total of $3.7 million had been spent so far for energy efficiency. The breakdown was $2.3 million for the Set to Save Program and $1.1 million in solar incentives through the State of California CSI Program. The City had saved 16.8 million kilowatt hours of power through these programs. The target goal at the end of five years is 214 million kilowatt hours of power, and saved the City about 7.8% towards that goal. The second goal is to reduce the peak demand Toad, and the City's saved 48,000 kilowatts of power, representing about 10.7% towards the City's five-year 30:30 goal. He said additional breakdowns on the HVAC were available, but, in the interest of time, he would provide them at a later date. Member/Councilmember Finerty requested a copy of the HVAC breakdown. Mr. Conlon did not have a copy with him but agreed to provide it to the Council. Mr. Conlon stated the City was nine months into the 60-month (five years) energy efficiency program. With regards to the Solar Report, he pointed out Mr. Ted Flanigan, President of EcoMotion and author of the Palm Desert Solar Plan was in attendance. He noted the staff report and offered that he and Mr. Flanigan were available to answer any questions. Member/Councilman Ferguson stated 7.8% was not an offset on the 30% goal, but a 7.8% of the 100% needed to cut 30%. Mr. Conlon concurred. Responding to Member/Councilman Ferguson's question about the 7.8% savings cost in rate payer money, Mr. Conlon responded the City used a total of $3.7 million in incentives, which was broken out as $2.354 million for the partnership in common programs for energy efficiency and $1.123 million for the CSI solar rebates. Responding to question about the $1.123 million used for solar energy funds, Mr. Conlon confirmed those were State funds used strictly for solar. Member/Councilman Spiegel asked if the $2.354 million went to the residents of Palm Desert for rebates for the swimming pool pumps and refrigerators, etc., and not for advertising. Mr. Conlon responded part of those incentive funds were for advertising and part of the advertising funds were from the City. He said Edison also used some of the money in their direct mailer program. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 Member/Councilman Spiegel asked how much of the $2.3 million was actual rebates to Palm Desert residents. Mr. Conlon said he suspected the incentive amount noted on the report did not include advertising, but he could get it broken down. Member/Councilman Spiegel asked of the $2.354 million spent, how much was spent by the City of Palm Desert, Edison, and The Gas Company, respectively. Mr. Conlon responded the amounts provided in the spreadsheet were all from Edison for incentives paid, and he hadn't received a tally from The Gas company. Upon further question, he replied there were no Palm Desert funds used. Member/Councilmember Finerty noted that under the "Common Programs for Residential," the "In -home Energy Surveys," it looked like the City was doing fairly well in some categories, but the "In -home Energy Surveys were not what was expected and wondered what was being done to increase them. Mr. Conlon stated the key to increasing response and getting phones to ring was marketing and promotion, and he's been working on marketing the programs with Ms. Gilligan and Southern California Edison. He said the commercial that ran with the late David Garcia was pulled, out of respect for the family, until a decision is made as to what will happen with it. He said the Chairman/Mayor will be meeting with HOA Board Members in the City of Palm Desert, all of the gate -guarded communities were invited to this meeting. One item of discussion will be the Energy Tune-ups and Energy Rallies the City will have in the fall, through the winter, and in the spring of 2008. He believed those rallies will generate more activity with the free, In -home Energy Surveys. He said they used to be called "Energy Audits," but people didn't like the term "audit," so now they're called "Energy Surveys." Upon further question, he said the date of the meeting was September 18, at 5 o'clock in the ACR. He said the letters were signed and sent out by the Mayor to all the HOAs and management companies, and staff will be following up via phone to make sure they received the invitation. Member/Councilman Ferguson stated using the numbers given, the City saved about eight million kilowatt hours on an investment of Edison's money of $2.354 million. Mr. Conlon concurred. Member/Councilman Ferguson went on to say the City spent $1.23 million of Edison's money and only achieved a tenth as much energy efficiency on 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 solar, leading one to conclude that solar was more expensive and less efficient than the program originally embarked on. Mr. Conlon agreed and stated the most cost efficient program for energy efficiency was not solar. Member/Councilman Ferguson asked how much money the City was seeking from Edison for the balance of the five-year program. Mr. Conlon responded it was $4 million, but the City was not looking to Edison for the money, it would be the California Public Utilities Commission, the rate payer money. Upon further question, he said the City will go back at the end of 2008 for its final three-year funding for the Palm Desert Partnership Program Funding, and he understood it was going to be about $18 to $20 million but didn't have the final numbers yet. Member/Councilman Ferguson recalled receiving $14 million for the first two years. Mr. Conlon agreed and stated the City also received $2.3 million from The Gas Company. Member/Councilman Ferguson stated it would bring the five-year total to anywhere between $32 and $34 million of CPUC money to be spent in Palm Desert. Mr. Conlon agreed and added the trick was spending it. Responding to question, Mr. Ortega confirmed staff was requesting a continuance because the City was asking its partners to provide the majority of the funding, assuming Council decided to kick-start the program and provide the initial funding. He said he met with the partners this morning and stated they were interested. Member/Councilman Spiegel moved to continue the matter to the meeting of September 27, 2007. Motion was seconded by Ferguson. MR. JAMES BROWNYARD, Building Industry Association (BIA), stated he was attending on behalf of Fred Bell. He acknowledged the City of Palm Desert was in the forefront on energy conservation and anything to reduce the load in this vicinity and was also marketing it outside of Palm Desert, saying "This is a great plan, you should go with it." He said there was one year of historywith the Energy Efficiency Ordinance, which the BIA continued to argue that it was not cost effective. However, the Ordinance included options that allowed some discretion with the builders, which the BIA 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 appreciated. He said such a home ordinance was an unfunded mandate only hitting new construction, whether it was residential, commercial, or industrial. He felt the City was doing something similar again by trying to jump start a new solar program, but like Mr. Conlon and Councilman Ferguson noted, solar was inefficient when it came to dollar and savings value. He said it was a great idea, but technology wasn't quite there yet to make it offset, and State funds weren't there to offset the increased cost of solar in the past few years. He said the BIA would like the City to continue looking at incentives, for either solar or energy efficiency programs and also look at programs with new construction in mind, residential or industrial. He said the BIA represented all construction, and for one cycle you can have residential, next cycle you could have commercial/industrial, but the savings and the efficiency programs should be across the board. MR. LARRY HUGHES, stated he was a builder of a project called "Portola Pointe" located in Palm Desert and also a resident of Palm Desert. He said he was in favor of solar energy. He said he built a tract of 16 homes, and all were equipped with the solar -voltaic systems, a 2,500-watt system, and the rough cost of installation was about $15,000. He said comparing dollar figures depended on who was doing the calculation and their direction. He said their Title 24 representative estimated the homeowner would save $900 on their electric bill with Edison (a conservative figure) on each one individual home; that number could be as high as $1,500 depending upon lifestyle. He said a million dollar investment from the City, in a program such as this one, could outfit 200-220 homes, and those homes will generate approximately $250,000 worth of electrical. One could call it "generating it" or "saving energy," but it boiled down to slowing down the electrical meter and consumption, and it's going to do what your ultimate programs are here to do —and that was to save money, save energy, and help the consumer. MR. MICHAEL ROVER, Willow Street, CA, stated he wanted to express his support for the Strategic Solar Plan. He said he and his wife put a 9.6-kilowatt system on their home about five years ago and were happy with the results. He believed the program and the initiative the City's was taking to save 30% or reducing 30% of its consumption was admirable. Member/Councilman Ferguson stated in reading the report, he noted the City was going to do incentives between $4,500 and $7,500 depending on who applied and the type of application, and the average of the two amounts was $6,000. He said if the money being proposed was actually spent on the program, it could fund 111 establishments, whether they were residential or business, but the City's pro forma identified 21,000 units that needed retrofitting. He said if 111 establishments will cost $1 million, where does the City come up with the billion dollars needed to take care of every house in Palm Desert. He didn't expect an answer this evening but requested that 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 vote. staff include the answer with their staff report, and also what exactly was the City kick-starting and where were the funds coming from. Chairman/Mayor Kelly called for the vote, and the motion carried by unanimous B. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE ENTRADA DEL PASEO PHASE 2 LANDSCAPING (CONTRACT NO. R21090A). Vice Chairman Benson moved to, by Minute Motion: 1) Authorize award of the subject contract in the amount of $2,440,600 to Sierra Landscape Company, Inc., Palm Desert, California, for construction of landscaping at the Entrada del Paseo site; 2) authorize the Director of Finance to set aside the amount of $244,060 as 10% contingency (use of contingency requires additional action); 3) appropriate $1,341,200 from Unobligated Agency Funds to Account No. 850-4358-433-4001 as remaining contract amount and contingency — original budget for the Entrada del Paseo Landscaping is available in Account No. 850-4358-433-4001 for FY 2007/08. Motion was seconded by Finerty and carried by a 4-0 vote, with Ferguson ABSENT. X. CONTINUED BUSINESS A. REQUEST FOR ADOPTION OF RESOLUTIONS APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE COSTS OF IMPROVEMENTS TO COOK STREET (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL) (Continued from the meeting of August 9, 2007). Mr. Ortega noted this item was held up because a decision had not been made on the CVAG reimbursement percentage. Upon further question, Mr. Ortega clarified approval of this item would allow the Redevelopment Agency to pay for the 50% cost. Member/Councilman Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 07-60, approving payment by the Palm Desert Redevelopment Agency for the costs of improvements to Cook Street; 2) Redevelopment Agency Resolution No. 542, approving payment by the Agency for the costs of improvements to Cook Street. Motion was seconded by Finerty and carried by a 5-0 vote. XI. OLD BUSINESS None 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 13, 2007 XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AGENCY None XIV. ADJOURNMENT Upon a motion by Spiegel, second by Finerty, and 4-0 vote of the Agency Board, with Ferguson ABSENT, Chairman Kelly adjourned the n : at 6:Ip ;•.m. ATTEST: RACHELLE D. KLASSEN, CRETARY PALM DESERT REDEVELOPMENT AGENCY ARD S. KELLY, CHAI MAN 10