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HomeMy WebLinkAbout2010-06-24MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JUNE 24, 2010 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Finerty convened the meeting at 3:00 p.m. II. ROLL CALL Present: Member Jean M. Benson Vice Chairman Jim Ferguson Member Richard S. Kelly Member Robert A. Spiegel Chairman Cindy Finerty Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney/RDA Executive Director Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, 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 JUNE 24, 2010 1) Property: APN 628-130-015 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City Palm Desert Redevelopment Agency Property Owner: Barracuda, LLC Under Negotiation: x Price x Terms 2) Property: APN 628-130-008 Negotiating Parties: Agency: John M. Wohlmuth/Lauri Aylaian/City Palm Desert Redevelopment Agency Property Owner: David Nelson Under Negotiation: x Price x Terms of Palm Desert/ of Payment of Palm Desert/ of Payment 3) Property: Lease Property - APN 622-260-082 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Riverside County Sheriffs Department Under Negotiation: x Price x Terms of Payment 4) Property: Lease Property - 42-455 Washington Street Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Up A Creek, Inc. (Casey's Restaurant) Under Negotiation: x Price x Terms of Payment 5) Property: 43-755 Kelsey Court Negotiating Parties: Agency: Justin McCarthy/Janet Moore/ Palm Desert Redevelopment Agency Property Owner: Harry G. and Joyce E. Planck Under Negotiation: x Price x Terms of Payment 6) Property: APN 627-102-012 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/Janet Moore/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 7) Property: APNs 627-101-017, -033, and -039 Negotiating Parties: Agency: Justin McCarthy/Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment Upon a motion by Ferguson, second by Benson, and unanimous vote of the Agency Board, Chairman Finerty adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Action: V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meeting of June 10, 2010. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 245RDA, 249RDA, 246-Housing, 250-Housing, and 251 HA. Rec: Approve as presented. C. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. R29420 — Professional Architectural Services for the Desert Willow Lakeview Terrace Expansion Project. Rec: By Minute Motion: 1) Approve Amendment No. 2 in an amount not to exceed $5,000 to the subject contract with Smart Michael Siminoff Architects, Inc. (SMS), Irvine, California, for additional reimbursable allowance for the Lakeview Terrace Expansion at Desert Willow; 2) authorize the Director of Finance to transfer $380 from contingency (Account No. 851-4663-454-4001) to base; 3) appropriate an additional $4,620 from Unobligated Project Area No. 2 funds; 4) authorize the Chairman to execute said Amendment. 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 D. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. R29450A — Professional Services for the Desert Willow Kitchen and Building Expansion Architectural Design. Rec: By Minute Motion: 1) Approve Amendment No. 2 in an amount not to exceed $11,200 to the subject contract with Melzer Decked & Ruder Architects, Inc., Irvine, California, for additional architectural design services for the Desert Willow Kitchen and Building Expansion; 2) authorize the Director of Finance to transfer $3,550 from contingency (Account No. 851-4663-454-4001) to base; 3) appropriate an additional $7,650 from Unobligated Project Area No. 2 funds to Post Construction Costs, Account No. 851-4663-454-4001; 4) authorize the Chairman to execute said Amendment. E. REQUEST FOR RATIFICATION of the Contractor Pre -qualification List for the Desert Willow Kitchen and Building Expansion Project. Removed for separate consideration under Section VII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. Staff requested Item E be considered separately for consideration of an amended recommendation. Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the Agency Board, the remainder of the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER E. REQUEST FOR RATIFICATION of the Contractor Pre -qualification List for the Desert Willow Kitchen and Building Expansion Project. Redevelopment Manager Martin Alvarez noted a summary memo was provided to the Council regarding a pre -qualification process to pre -qualify general contractors for the Desert Willow Kitchen Expansion project. Staff met with seven general contractors and reviewed the pre -qualifications to ensure the insurance and quality of work performed prior would meet the Agency's criteria for the kitchen expansion. The summary consisted a list of the seven contractors interviewed, a listing of the pre -qualified contractors, and a list of those contractors that were rejected at this time. Staff recommended ratification of the list, which had been approved by the Executive Director and allow staff to proceed with any appeals that may come forward. Responding to question, he said staff will go out to bid and receive the lowest bid, but this request was to proceed in a timely manner and ensure the quality of the contractor's work was adequate. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 Member Spiegel moved to, by Minute Motion: 1) Ratify the Executive Director's approval of the contractor pre -qualification list for the Desert Willow Kitchen and Building Expansion project; 2) authorize staff to set up an appeals panel consisting of City staff to hear any appeals. Motion was seconded by Kelly and carried by a 5-0 vote. VIII. RESOLUTIONS None IX. NEW BUSINESS A. CONSIDERATION OF A REQUEST FOR FUNDING TO SPONSOR FASHION WEEK EL PASEO 2011 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Councilmember/Member Benson moved to, by Minute Motion: 1) Approve a $50,000 sponsorship for the 2011 Fashion Week Event; 2) authorize up to $10,000 in -kind City services and fees; 3) authorize use of the Agency -owned lot at the northeast comer of Shadow Mountain Drive and Larkspur; 4) permit the consumption of alcoholic beverages on Agency -owned property; 5) authorize the Mayor/Chairman to execute the sponsorship contract (Contract No. C29940)—funds have been included in the proposed Financial Plan for 2010-2011, Community Sponsorships, Account No. 110-4416-414-3062. Motion was seconded by Ferguson and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF A FUNDING COMMITMENT OF $100,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2010-2011 FISCAL BUDGET AND INCLUDE A LINE ITEM IN THE REDEVELOPMENT AGENCY BUDGET FOR DISCUSSION FOR THE FOLLOWING FOUR (4) YEARS AT THE SAME AMOUNT. Economic Development Manager Ruth Ann Moore stated last January Council had a study session to review CVEP's Blueprint and Implementation Plan and Mr. Richard Ramhoff was present this evening to speak on the matter. Since the staff report was written, the cities of Palm Springs and Indian Wells both have approved contributions of $100,000, Desert Hot Springs $50,000, and La Quinta $25,000. Additionally, the staff of Rancho Mirage recommended to their council $50,000, and rumor is the City of Indio will approve $10,000, but that information has not been confirmed. Further responding, she said the City of Rancho Mirage will take a vote on staff's recommendation in July, and she did not have information on the City of Cathedral City. Vice Chairman Ferguson heard there was an attempt to relocate the partnership and it was tied to a contribution by one or more cities. 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 Ms. Moore responded she had not heard of that information at the meetings, but would defer the question to Mr. Ramhoff. Vice Chairman Ferguson stated this was a big issue in Closed Session, and without revealing those discussions he was curious to hear the answer. MR. RICHARD RAMHOFF, stated he was President and Publisher of The Desert Sun and new Chairman of the Coachella Valley Economic Partnership Board (CVEP). Responding to Vice Chairman Ferguson's question, he said the partnership was looking for new space as the Blueprint outlined a larger staff than the current space provided in the Civic Parkway. Other types of spaces have been looked at, but the Executive Board has made no recommendation to the overall Board about any such thing. He said there were proposals from various places, one being the City of Palm Springs, but that this matter should probably be discussed at an executive session if more details were needed. However, no movement had been made in terms of a vote, but all possibilities were being reviewed. He moved on to talk about the items the Blueprint recommended, which was to have an experience economic development executive at the top of the organization. He said the Board hired an executive search firm that was currently gathering resumes, entertaining candidates, and expected to have the first cut of those candidates in 30 days. He said Wes Ahigren is and will remain Director of Operations. He said a regional economical development agency like CVEP with the new Blueprint strategy can amplify the things that each contributing city did. One small important thing that has happened this summer is the business survey that is being conducted, which is fully funded by grants from the County. The survey is important, because there was only one city that he was aware of that was going to participate in that grant for the summer when it was discovered at a meeting at CVEP. The economic development folks got together and decided it needed to be done for the Valley as a whole, because it would provide a good benchmark for what businesses are currently feeling, and no doubt that business retention and growth are just as important as business and traction; some economic development experts would argue more important. He was excited about the survey, because A, it amplified what CVEP can do on its own by utilizing grant funding, and B, it will set a base line where in the five-year plan CVEP will be able to measure satisfaction among businesses in terms of the environment it provided. He said this was just one small example, but it already started along a path of a regional voice for economic development. Another point to make was that on Saturday, a CVEP organized program called "Pathways to Success," awarded $1.4 million in scholarships to students across the Valley. This program began a few years ago as a response to the need to have a better college -educated workforce in this Valley. He said Pathways to Success staff was able to pull together matching funds that already existed across the Desert to attract funding from an outside organization. The College Access Foundation liked the activity and path that CVEP was 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 taking and provided $1 million in those scholarship funds. He said this was a perfect example of working together with one voice, and CVEP is able to amplify what it does. The Blueprint pointed out that the next step is to organize around business, attraction, and retention, which is something CVEP can do better. CVEP needs to market itself better by having a business environment with cities at the table and fulfilling the Blueprint will require leader -oriented cities like Palm Desert. He thanked the Council for its consideration and past participation and believed CVEP was ready for the next step, because momentum was building. CVEP now had a 25-member board that included representation from public entities and private industries together with great commitments from the hospitals, CEO's at high levels, and other businesses at the $10,000 contribution level, which for many was a big step up towards the commitment to regional economic development. He said those making commitments see the upside, which were jobs that benefit everyone across the Valley including his business, advertising, and retailers across the board. He offered to answer questions. Member Benson agreed with Mr. Ramhoffs comment that the City of Palm Desert had stood by CVEP all the years in good and bad times by providing office space in the City's building and money as well. She said this seemed to be the total commitment CVEP had been seeking for a long time in order to proceed and thought this was probably the last chance that it will happen. She recommended a contribution of $50,000 with the Council to review again next year. Member Benson moved to, by Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2010-2011 fiscal budget and consider future funding at the appropriate time during the City's budget process next year — funds have been included in the proposed Financial Plan for 2010-2011 Economic Development Dues, Account No. 850-4430-422-3630. Member Spiegel stated he liked the new management, because the previous ones didn't do much. He's been on the Council for 16 years and every year its given money to CVEP, so he hoped this new management will make a difference. He knew $50,000 was less than what CVEP was requesting, but if one combined all the years that Palm Desert had contributed, it was a lot more than $50,000. Member Spiegel seconded the motion. Member Kelly stated the Blueprint indicated CVEP will hire a dynamic, accomplished and seasoned CEO, which depended on resources and donations with no headquarters, yet he wasn't sure what's been accomplished in the past. He said the bullet benchmarks in the staff report was a lot of pie in the sky that it discouraged him from any commitment for 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 future years and was not convinced he was in favor of the $50,000 contribution this year. Vice Chairman Ferguson stated he came out of Closed Session fully supporting the $100,000 contribution and Blueprint, and excited about the direction CVEP was taking, because he was one of the original CVEP members in 1993-1994 with then publishers of The Desert Sun who really got the organization going. When he was first elected, he recalled getting the Mayors of La Quinta and Indian Wells together over dinner and discussed getting the other cities to pull together and support the organization, and at that time, they didn't even have an office. He talked to his colleagues and they were kind enough to offer the space over at The Brother's Building, which was provided rent free, and the other cities were convinced to contribute $5,000; there were only three cities contributing in the 1990's. He said Palm Desert provided CVEP free rent and contributed $5,000, and for 15 years Palm Desert had been the biggest city contributor to the organization. He said CVEP functioned without a CEO three times, and all of those times, Ruth Ann Moore and Justin McCarthy had gone over to the building to keep the lights on, kept doors opened, and answered the phones. He said he personally served on two search committees and declined to participate on the last one, because he got burned out. Additionally, he personally served as chairman and been on the board, stating Palm Desert had carried CVEP on its back with little or no results, but believing in the regional approach, which he still believed. So he was shocked to hear the rumor that CVEP was moving to another city, which was the way it was presented to him in the documents given to him in Closed Session. He realized Mr. Ramhoff was a late comer to the party, but would like it conveyed back to some of the elders in the organization that a courtesy phone call would have been nice or, as CVEP's landlord for the past 15 years, a request for additional space would have also been nice. To hear CVEP would go to either Indio or Palm Springs was received by some as a slap on the face, and it drained his enthusiasm for the $100,000 contribution. He will support the motion for $50,000 and would be happy to be one of 25 people who will pull forth for CVEP no matter where it went, but on a personal note, it would have been nice for Palm Desert to know what CVEP plans were before a public meeting took place. Member Benson concurred with Vice Chairman Ferguson's comments, but that it seemed that CVEP had more Valley support now than ever before, stating when CVEP approaches Palm Desert again next year, hopefully the other cities will increase their contributions after they see valid proof of what is being accomplished, because Palm Desert had supported CVEP through all the bad times and bad CEOs, but Palm Desert stuck with CVEP, which was more than she could say for some organizations that try to set up in the Valley. She said the cities that are behind CVEP do it because they have 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 faith in what its trying to accomplish and one day someone will make it succeed. Chairman Finerty stated she would support the $50,000, but believed results should be measured and need to be addressed next year by requesting an update, just like it required it from the Fire and Police Department. At the invitation of Wes Ahlgren, she agreed to serve on the advisory board and was happy to do so. She agreed with Member Benson's comment that this was the perfect opportunity for CVEP to succeed and obviously jobs were the issue for the economy. Chairman Finerty called for the vote and it carried by a 4-1 vote, with Kelly voting NO. X. CONTINUED BUSINESS None Xl. OLD BUSINESS A. REQUEST FOR APPROVAL AND EXECUTION OF AGREEMENT WITH THE DESERT SUN FOR SPONSORSHIP OF A PROMOTIONAL MAGAZINE (CONTRACT NO. C29960) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Marketing Manager Kristy Kneiding stated staff was previously directed to negotiate a contract with The Desert Sun to help support the relaunch of a magazine formerly known as 92260, which targets both residents and visitors. She said staff and representatives from The Desert Sun were present to answer any questions. Councilman/Member Spiegel pointed out that he originally voted against this, not because he disliked The Desert Sun, but because he thought this amount of money could be spent in San Diego, Los Angeles, and San Francisco to attract people from out of town. He understood the magazine will be distributed into the local hotels, specifically Embassy Suites and the Marriott, but none outside the City. Additionally, he received a copy of a letter from Executive Vice President of Palm Springs Life Frank Jones who stated they understood the City desiring to take advantage of having a Palm Desert Magazine and attended the Marketing Committee meeting where Councilman Ferguson and The Desert Sun presented their concept and expressed determination to execute the plan. Mr. Jones states that the Desert Publishing Incorporated could produce the magazine for half the cost or less and could deliver the quantity, content, graphics, and also improve greatly on the proposed distribution and reach applications. His improvements would make the City's magazine a much more valuable 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 publication and save precious dollars that could be better used in relationship to the heart wrenching personal cuts recently made by the City. Councilman/Member Kelly stated he felt strongly a Request for Proposal (RFP) should have been conducted. Although he thought it was good to have a Palm Desert magazine in the hotel rooms, he didn't know how it would benefit when the residents already received the BrightSide Newsletter. However, he agreed people should have something from Palm Desert that could carry home with them. He reiterated the City should have done a RFP to see what else was out there. Mayor Pro TemNice Chairman Ferguson said it took a lot of gulls for Mr. Frank Jones to make those statements having received millions from the City of Palm Desert over the years, and having just approved $50,000 this evening for Fashion Week, and neither one of his esteemed colleagues insisted the item go out for an RFP, and The Desert Sun didn't say they could do Fashion Week for half the cost. The last time the City attempted to launch a magazine, Palm Springs Life (PSL) hastily put together a Palm Desert Magazine and dumped it on all the Council's desks and never saw another publication. He said Palm Springs Life (PSL) only seemed to scream when someone else wanted to do something beneficial for Palm Desert, but they never deliver. He said PSL had every opportunity in the last five years since it started 92260 to provide a proposal, which they never did. He said this was anti -competitive conduct and couldn't believe the two people he considered business knowledgeable in this County fell for such ridiculous conduct, which he found reprehensible. He said everyone knew Palm Desert residents were not staying in the City's hotels, but if you take into account the part-time residents that live in Palm Desert during the winter months who return to Chicago, Seattle, Portland and other parts of the Country, they want to show off Palm Desert to their relatives, sons, nephews, grandchildren and take copies of this magazine with them. To say this magazine will just sit on shelves like the BrightSide was disingenuous, which frankly the BrightSide ended up in the trash more often than not. He said given the millions spent on marketing, doing a trial for one year with The Desert Sun to promote Palm Desert was worthwhile from a marketing standpoint. Additionally, the Council claims to have so much faith, rightfully so, on the City's Marketing Committee, which voted unanimously in favor o the Palm Desert Magazine, and he wasn't going to second guess their opinion. He went on to say the Council voted four to one during the budget to do this, and he respected Councilman Spiegel's opinion and hoped his would be respected as well. He said there were two sides to every story, and The Desert Sun's side needed to be heard. Councilmember/Member Benson agreed with Mayor Pro Tem Ferguson and the fact that it would only be a one-year publication, and if it didn't work out, it wouldn't have to be renewed. She said The Desert Sun had a track record 10 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 in these publications, which she thought was worth a try. She believed the public will take the magazine home if it's published by a reliable source. Mayor/Chairman Finerty concurred, stating she was amazed when for three years some Councilmembers voted to spend more than $600,000 for the Art of Food & Wine event to promote the City and here a mere $110,000 was considered to promote the City via a magazine where something was actually being produced that was not alcohol induced. She was in support of this request with a one-year trial, because it was a reasonable way in this economy to market the City. Mayor Pro TemNice Chairman Ferguson moved to, by Minute Motion: 1) Approve agreement with The Desert Sun for sponsorship of a promotional magazine in the amount of $110,000 for Fiscal Year 2010-2011; 2) authorize the Mayor to sign said agreement — funds are included in the proposed Financial Plan for 2010-2011, split between the respective Redevelopment Agency and City Advertising and Professional Services Accounts. Motion was seconded by Benson and carried by a 3-2 vote, with Kelly and Spiegel voting NO. B. REQUEST FOR RATIFICATION OF THE CITY MANAGER'S AUTHORIZATION OF AMENDMENT NO. 1 TO CONTRACT NO. C29400 WITH GOULD EVANS ASSOCIATES IN THE AMOUNT OF $23,600 FOR ADDITIONAL DESIGN SERVICES; AUTHORIZATION FOR STAFF TO SOLICIT BIDS FOR CONSTRUCTION AND RELEASE OF THE REQUEST FOR PROPOSALS (RFP) FOR OPERATIONS OF THE AQUATIC CENTER (PROJECT NO. 722-10) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Councilmember/Member Benson stated when the Park and Recreation Commission was attempting to put more playground equipment in the pool and it was turned down, the current amendments made will be a good remedy to that situation. The improved space will be available should it be necessary in the future. Councilman/Member Spiegel said the changes will allow more people to come into the area, picnic on the grass, and pay the fee to get in and watch the race. He said the grass area will provide the ability to make more money. Mayor Pro Tem/Vice Chairman Ferguson said the suggestion was a breath of fresh air coming from the Parks and Recreation Commission, because it was good planning to look toward the future. He said one couldn't reserve enough space for future growth. Councilman/Member Spiegel moved to, by Minute Motion: 1) Ratify City Manager's authorization of Amendment No. 1 to the subject contract with Gould Evans Associates, Phoenix, Arizona, in the amount of $23,600 for additional design services for the Aquatic Center Project; 2) authorize the Mayor to execute Amendment No. 1; 3) authorize staff to 11 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 solicit bids for construction (Contract No. C29400A); 4) authorize staff to release the RFP for operations of said project (Contract No. C29400B) — funds for the original design service contract are available in Account No. 233-4602-454-4001 (±40%) - Park Fund, and Account No. 851-4549-454-4001 (±60%) - Project Area No. 2 Aquatic Facility Capital Budget; funds for Contract Amendment No. 1 are also available in Account No. 851-4549-454-4001 held as contingency, no General Fund money is being used for this expenditure. Motion was seconded by Ferguson and carried by a 5-0 vote. C. REQUEST FOR AUTHORIZATION TO AWARD CONTRACT NO. R29420A TO THE LOWEST RESPONSIBLE BIDDER FOR THE LAKEVIEW TERRACE EXPANSION PROJECT AT DESERT WILLOW GOLF RESORT. Redevelopment Manager Martin Alvarez stated the project included the expansion of the terrace deck by 100 feet, which is an extension of the existing patio with additional patio surface, outdoor bar, outdoor fireplace, and outdoor fire pit. On June 23 the City Clerk opened seven bids for the Lakeview Terrace Expansion Project and a summary of those bid results was provided to the Council. The lowest responsive bidder was GHA Holdings in the amount of $999,390 and as part of the bid staff requested additive altemates for several items that would enhance or provide additional benefit to the project, which are listed in the summary memo as Additive Alternates 1-7. Staff recommended that as part of the award, Council approve adding altemates 1-2, 4-7, and excluding Altemate 3, which was extension of the misting system on the outdoor banquet area. Staff recommended approval of the contract with GHA Holdings in the amount of $1,089.020 with a 10% contingency of $108,900. He offered to answer any questions. Responding to question about qualifications, he said staff reviewed GHA Holdings qualification and they met the criteria. Member Spiegel moved to, by Minute Motion, authorize: 1) The Chairman to award subject contract in an amount not to exceed $1,089,000 (base bid and additive alternates 1-2, 4-7) to GHA Holdings, Cathedral City, California, for the Lakeview Terrace Expansion Project at Desert Willow Golf Resort; 2) Director of Finance to set aside the amount of $108,900 as 10% contingency for the project (use of contingency requires additional action) — funds have been included in the proposed 2010-2011 Financial Plan in Project Area No. 2, Account No. 851-4663-454-4001. Motion was seconded by Kelly and carried by a 5-0 vote. 12 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 XII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2010-2011 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL AND THE PALM DESERT HOUSING AUTHORITY). Mr. Wohlmuth stated the 2010-2011 Fiscal Year Budget was balanced. The revenues for this year were estimated at $42,910,000 with expenditures at $42,637,000, and the difference of $273,000 will be put into the retirement health contribution to fund that account, which historically was funded every year except in the tough ones. He said the balanced budget accomplished everything requested by the Council at the budget hearings, but unfortunately staff was reduced to 148 employees in order to balance the budget, which was done three months ago. He said the impacts have been brought into City Hall with no service delivery decline from those cuts and stated the budget was a good financial plan for 2010-2011. Councilman/Member Kelly explained for the purposes of the audience in attendance that this was not the first time the Council was dealing with the budget, because several meetings prior to this one took place before it reached this point. Mayor/Chairman Finerty agreed, stating the Council had three study sessions with a line -by-line review of the budget. Mayor/Chairman Finerty declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to waive further readina and adopt: 1) City Council Resolution No. 2010 - 45, adopting a City Program and Financial Plan for the Fiscal Year July 1, 2010, through June 30, 2011; 2) City Council Resolution No. 2010 - 46, establishing the Appropriations Limit for the 2010-2011 Fiscal Year; 3) Redevelopment Agency Resolution No. 573, adopting a Redevelopment Agency Program and Financial Plan for the Fiscal Year July 1, 2010, through June 30, 2011; 4) Housing Authority Resolution No. HA-43, adopting a Housing Authority Program and Financial Plan for the Fiscal Year July 1, 2010, through June 30, 2011; 5) City Council Resolution No. 2010 - 47, setting the Salary Schedule, Salary Ranges, and Allocated Classifications; 6) By Minute Motion, approve the Out -of -State Travel Requests as listed in the accompanying staff report memo entitled same. Motion was seconded by Ferguson. Mayor Pro TemNice Chairman Ferguson said this was probably the biggest budget reduction in the history of the City. He said Palm Desert never had an unbalanced budget and believed this was a healthy exercise for the City to tighten its belt and live within the means. He wished other forms of 13 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 government would follow the same lead as Palm Desert, although it was a painful process. His hat was off to the City Manager for making the tough decisions and the Director of Finance for assuring once again that Palm Desert had a balanced budget with a modest surplus of $300,000, even with his conservative revenue assessment. Mayor/Chairman Finerty called for the vote and the motion carried by a 5-0 vote. B. REQUEST FOR ADOPTION OF RESOLUTIONS, AUTHORIZING A REQUEST TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO AMEND THE CONTRACT USE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDING AND EXECUTION OF THE RELATED AGREEMENT AND ANY AMENDMENTS THERETO (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated this was an amendment to the agreement for NSP to stabilize neighborhoods in Palm Desert that had been hit by foreclosures. It was determined early on in the process that the contract needed to be amended, however, the County believed it had already covered it. Staff was seeking authorization to acquire properties and be reimbursed by NSP. Mayor/Chairman Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt City Council Resolution No. 2010 - 48, authorizing a request to amend the contract use of California Neighborhood Stabilization Program (NSP) funding and execution of the relative agreement, and any amendments thereto; 2) Waive further reading and adopt Redevelopment Agency Resolution No. 574, authorizing a request to amend the contract use of California Neighborhood Stabilization Program (NSP) funding and execution of the relative agreement, and any amendments thereto; 3) By Minute Motion, authorize the City Manager/Executive Director or the Director of Housing to sign Funds Requests and other required reporting forms. Councilman/Member Kelly noted this was a $300,000 investment to help others. Motion was seconded by Benson and carried by a 5-0 vote. 14 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 C. REQUEST FOR APPROVAL OF THE REPLACEMENT HOUSING PLAN FOR SAGECREST APARTMENTS LOCATED AT 73-775 SANTA ROSA WAY, PALM DESERT (A.K.A. 44-200 SAN PASCUAL AVENUE, PALM DESERT). Management Analyst Jessica Gonzales stated the Redevelopment Agency is required by law to adopt a Replacement Housing Plan whenever the Agency takes action that would lead to the destruction or removal of dwelling units from the low and moderate income housing market. As part of the Sagecrest Apartment project, the Agency will be removing 14 apartment units, of which two units were available to low and moderate income households. According to Community Redevelopment Law, such removal requires the Agency "replace" those units within four years. The Replacement Housing Plan has been created to identify designated replacement units that are an/or will be available to replace the two units within the required time period. The Housing Commission has reviewed the plan as an information item and no comment was received. She offered to answer questions. Chairman Finerty declared the public hearing open and invited public testimony in FAVOR or OPPOSITION to this matter. With no public testimony offered, she declared the public hearing closed. Member Spiegel moved to waive further reading and adopt Resolution No. 575, approving the Replacement Housing Plan for the Sagecrest Apartments, substantially as to form. Motion was seconded by Kelly and carried by a 5-0 vote. 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 15 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 2010 XIV. ADJOURNMENT Upon a motion by Ferguson, second by Spiegel, and unanimous vote of the Agency Board, Chairman Finerty adjourned the meeting at 5:51 p.m. ATTEST: C NDY F E"TY, CH IRMAN RA HEL E D. KLASSEN, SECRETARY 3 PALM DESERT REDEVELOPMENT AGENCY 16