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DRAFT
PRELIMINARY MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, JULY 8, 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 3:01 p.m.
II. ROLL CALL
Present: Excused Absence:
Member Jean M. Benson Member Richard S. Kelly
Vice Chairman Jim Ferguson
Member Robert A. Spiegel
Chairman Cindy Finerty
Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the Agency Board,
Member Richard S. Kelly's absence from today's meeting was excused.
Also Present:
John M. Wohlmuth, City Manager/RDA Executive Director
David J. Erwin, City Attorney
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
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
J. Luis Espinoza, Assistant Finance Director
Dorian Cooley, 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:
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PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
1) Property: APN 628-130-015
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: Barracuda, LLC
Under Negotiation: x Price x Terms of Payment
2) Property: APN 628-130-008
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: David Nelson
Under Negotiation: x Price x Terms of Payment
3) Property: 72559 - 72567 Highway 111, Palm Desert
(APNs 640-370-015, 640-320-004)
Negotiating Parties:
Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: City of Palm Desert
Other Parties: Palm Springs Art Museum
Under Negotiation: x Price x Terms of Payment
4) Property: Lease Property- 73-470 EI Paseo, Suite No. 14, Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: EI Paseo Square, LLC
Under Negotiation: x Price x Terms of Payment
5) Property: 44-900 East San Clemente Circle, Palm Desert
(APN 627-074-006)
Negotiating Parties:
Agency: John M. Wohlmuth/Justin McCarthy/Martin Alvarez/
City of Palm Desert/Palm Desert Redevelopment Agency
Property Owner: Mr. and Mrs. Timothy R. Palmer
Under Negotiation: x Price x Terms of Payment
6) Property: 44-845 San Clemente Circle, Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Justin McCarthy/Martin Alvarez/
City of Palm Desert/Palm Desert Redevelopment Agency
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
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PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
7) Property: 44-215 San Pascual Avenue (APN 627-102-017) and
73-697 Santa Rosa Way (APN 627-102-019)
Negotiating Parties:
Agency: Justin McCarthy/Catherine Walker/
Palm Desert Redevelopment Agency
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
On a motion by Spiegel, second by Ferguson, and 4-0 vote of the Agency Board,
with Kelly ABSENT, Chairman Finerty adjourned the meeting to Closed Session at
3:03 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.
None
V. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
VI. CONSENT CALENDAR
A. MINUTES of the Regular Redevelopment Agency Meeting of June 24, 2010.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant
Nos.253RDA,258RDA,261 RDA,254-Housing,259-Housing,262-Housing,
255HA, and 263HA.
Rec: Approve as presented.
C. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 Minutes
for the Meeting of May 17, 2010.
Rec: Receive and file.
D. REQUEST FOR APPROVAL of the Revised Contractor Pre-qualification List
for the Desert Willow Kitchen and Building Expansion Project.
Rec: By Minute Motion, approve the Revised Contractor Pre-qualification
List for the Desert Willow Kitchen and Building Expansion Project.
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PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
Upon a motion by Spiegel, second by Benson, and 4-0 vote of the Agency Board,
with Kelly ABSENT, the Consent Calendar was approved as presented.
VII. CONSENT ITEMS HELD OVER
None
Vill. RESOLUTIONS
None
IX. NEW BUSINESS
A. REQUEST FOR AUTHORIZATION TO SUBMIT AN APPLICATION FOR A
CLIMATE SHOWCASE COMMUNITIES GRANT OFFERED BY THE
ENVIRONMENTAL PROTECTION AGENCY IN THE AMOUNT OF
$500,000 AND TO ALLOW THE CITY MANAGER TO SIGN AS THE
AUTHORIZED REPRESENTATIVE FOR THIS PURPOSE (JOINT
CONSIDERATION WITH THE PALM DESERT CITY COUNCIL AND THE
PALM DESERT HOUSING AUTHORITY).
Mr. Wohlmuth stated the grant application was reviewed by Planning
Department staff and their Sustainability Coordinator Missy Grisa, and they
identified areas within the City where existing projects can be matched. He
knew there was a concern for the use of additional General Fund revenues
in the amount of $500,000 if the grant was received, and his first response
is that it wouldn't hurt to apply and staff can return to the Council with the
specifics if the grant is awarded to the City. Secondly, all of the programs
already exist that are sustainability in nature in the areas identified between
Monterey Avenue, Portola Avenue, Fred Waring Drive, and Highway 111.
Some of the programs that can be used to match the funds are the Turf
Buy-Back Program, Community Gardens, Fruit Share Program, and the
Affordable Net-Zero Demonstration Homes along Alessandro Alleywhere the
City was purchasing lots and could use the remnant parcels for affordable
net-zero demonstrations. He reiterated the City had existing programs it can
match to the $500,000 federal grant if received.
Mayor/Chairman Finerty asked if what the City considered a match was also
what the Environmental Protection Agency (EPA) considered a match.
Assistant Planner Missy Grisa responded the EPA considered a match with
staff time, volunteertime, donations, and in-kind contributions to the project.
She said staff time alone would contribute a great portion as well as
contributions the City can obtain from members of the US Green Building
Council by volunteering their time to give tours of the Net-Zero
Demonstrations or collaborations the City may have with students at College
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PRELIMINARY MINUTES DRAFT
PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
of the Desert. The City can use student time as a donation at a minimum
wage rate, and when you calculate those all out, it would be more than
enough to reach the 50% match. Further responding, she confirmed
General Funds would not be required, but potentially recycling or housing
funds may be requested, which were already set aside, but at this time staff
was not anticipating using them.
Mayor Pro Tem/Vice Chairman Ferguson moved to, by Minute Motion, authorize
staff to submit an application for a Climate Showcase Communities Grant offered by the
Environmental Protection Agency in the amount of$500,000 and to allow the City Manager
to sign as the authorized representative. Motion was seconded by Benson and carried by
a 4-0 vote, with Kelly ABSENT.
B. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE
DESERT WILLOW OVERFLOW PARKING LOT PROJECT TO COOLEY
CONSTRUCTION, INC., IN THE AMOUNT OF $515,366 (CONTRACT
NO.C29790, PROJECT NO.614-09)(JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL).
Councilman/Member Spiegel moved to, by Minute Motion: 1) Award the subject
contract for construction of Desert Willow Overflow Parking Lot Project to Cooley
Construction, Inc., Hesperia, California, in the amount of$515,366; 2)authorize the Mayor
to execute the contract — funds are available in Redevelopment Agency Account No.
851-4663-454-4001, Project Area No. 2, Desert Willow Overflow Parking. Motion was
seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT.
C. REQUEST FOR AWARD OF CONTRACT FOR OPERATION OF THE
EL PASEO COURTESY CARTS TO RlTE RATE BUSINESS SOLUTIONS
(CONTRACT NO. R29970).
Member Ferguson moved to, by Minute Motion: 1) Reject the bid from Mobile
Solutions as non-responsive; 2) authorize award of the subject contract in an amount not
to exceed $163,000 for the yearly operation and maintenance of the EI Paseo Courtesy
Carts ($158,000 yearly operation and $5,000 for operations during special events);
3) authorize an additional $10,000 for maintenance and repairs to the vehicles; 4) waive
any irregularities; 5)authorize the Chairman to execute said contract—funds in the amount
of $173,000 are available in Courtesy Carts, Account No. 850-4416-414-3681.
Member Spiegel asked if this was the same amount as last year.
Economic Development Manager Ruth Ann Moore said it was a reduction of
20%.
Member Spiegel seconded the motion and carried by a 4-0 vote, with Kelly
ABSENT.
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PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
D. REQUEST FORAUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO
EXECUTE A C�NTRACT WITH THE LOWEST RESPONSIVE BIDDER
FOR CONSTRUCTION OF TENANT IMPROVEMENTS IN AN AMOUNT
NOT TO EXCEED $200,000 FOR THE VISITOR CENTER TO BE
LOCATED AT 73-470 EL PASEO (CONTRACT NO. R30070).
Please see re�ated discussion under Section XI-Old Business, Item A.
Member Spiegel moved to, by Minute Motion, continue this matter to a Special or
Adjourned Meeting with date to be determined by the City Manager. Motion was seconded
by Ferguson and carried by a 4-0 vote, with Kelly ABSENT.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
A. REQUEST FORAUTHORIZATION FORTHE EXECUTIVE DIRECTOR TO
AWARD CONTRACT FOR THE KITCHEN/BUILDING EXPANSION
PROJECT AT DESERT WILLOW GOLF RESORT TO THE LOWEST
RESPONSIVE BIDDER (CONTRACT NO. R29450C) (JOINT
CONSIDERATION WITH THE PALM DESERT CITY COUNCIL).
Councilmember/Member Benson moved to: 1) By Minute Motion, authorize the
Executive Director to award the subject contract to the lowest responsive bidder for the
Kitchen/Building Expansion Project at Desert Willow Golf Resort up to the project budget
of $2.95 million plus 20% (bids scheduled to be opened July 20, 2010); 2) By Minute
Motion, authorize the Director of Finance to set aside a 10% contingency for the project
(based on lowest responsive bid amount — use of which requires additional action);
3) Waive further reading and adopt Resolution No. 2010 - 61, approving a loan in an
amount not to exceed$500,000 from the City's Golf Course Maintenance Fund(Fund 241)
to the Desert Willow Golf Course Operating Fund (Fund 520)—funds for construction have
been included in the 2010-2011 Financial Plan in Project Area No. 2, Account No.
851-4663-454-4001. Motion was seconded Finerty.
Responding to question about why staff was requesting a 20% contingency
instead of the usual 10%, Redevelopment Manager Martin Alvarez said the
usual 10% was to accommodate the normal contingency, because staff
didn't have the ability to return with the actual pricing as bids will be opened
in July. Staff was requesting authorization for the Executive Director to have
flexibility to make adjustments to the project budget when the bids came in.
Mayor Pro Tem/Vice Chairman Ferguson noted staff was asking for a
$600,000 flexibility.
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PRELIMINARY MINUTES DRAFT
PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
Mr. Alvarez responded 10% would be set aside as the usual contingency,
and $300,000 for flexibility, which would not be used if bids came in at/or
below budget.
Councilman/Member Spiegel said the overall project was more than
$3 million for a kitchen expansion and questioned if it would be appropriate
to hold another City Council meeting.
Mayor/Chairman Finerty agreed. However, she though it was poor
judgement to let people know what the City/Redevelopment Agency may be
willing to spend before bids are submitted.
Mr. Alvarez stated staff was presenting this item to the Council at this point
due to the summer City Council schedule.
Mayor/Chairman Finerty stated the City's finances needed to come ahead
of Councilmembers schedules, and another meeting can take place.
Responding to question, Mr. Alvarez said the bid opening was July 20 and
in order to meet the established schedule to lessen the impact to the peak
season and be complete by the end of December, was the reason why this
item was presented to the Council at this point.
Councilman/Member Spiegel asked if a meeting can be held after the bid
opening.
Mr.Wohlmuth answered yes, stating that Councilman/Member Kelly may not
be present, because he had expressed his vacation plans during that time.
He offered a compromise to the 20% contingency in that staff's
recommendation would be to consider $2.95 million, which was the
architect's estimate plus the 10%contingency. If the bids came in above that
amount, a special meeting can be called, but if not, it was because the bids
came in below the City's estimate.
Councilman/Member Spiegel agreed with Mayor/Chairman Finerty on why
broadcast what the City was willing to pay.
Mayor/Chairman Finerty noted another item on the Redevelopment Agency
also broadcasted what the Agency was willing to pay. She would rather
meet at the end of the month and take up these two items. Mr. Wohlmuth
agreed to bring back the two items for a special City Council meeting.
Mr. McCarthy pointed out it may require two special meetings in order to
accommodate both projects.
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PRELIMINARY MINUTES DRAFT
PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
Mayor/Chairman Finerty said she will raise the same issue with the item on
the Redevelopment Agency about broadcasting what the City was willing to
spend. She understood there was a time constraint, but believed enough
Councilmembers could get togetherto meet. She said bids had been coming
in lower because of the economy, and people should be happy to have a job,
but for the City to broadcast what it was willing to spend was ridiculous. She
said the Council needed to send a loud and clear message that the City was
not looking at these estimates, but expecting to take advantage of the
economy and put people to work. Further responding on whetherto continue
to a special or adjourned meeting. She said she was looking at July 29,
however, it may require two meetings as Mr. McCarthy suggested.
Councilman/Member Spiegel suggested having the City Manager set the
date of the meeting based on Councilmembers schedules.
The following substitute motion was made:
Mayor/Chairman Finerty moved to continue this matter to a Special or Adjourned
Meeting with date to be determined by the City Manager. Motion was seconded by
Spiegel and carried by a 4-0 vote, with Kelly ABSENT.
XII. PUBLIC HEARINGS
None
XIII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Mr. McCarthy reported that staff will begin its information outreach on the
Project Area No. 4- Palm Desert Country Club Undergrounding Project with
the first meeting being held next Wednesday, July 14, at approximately
5:30 p.m. He said members of the public had been invited to be educated
on the process, costs, and the methodologies that are involved in an
undergrounding project.
B. AGENCY COUNSEL
None
C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
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PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 8, 2010
XIV. ADJOURNMENT
Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the Agency Board,
with Kelly ABSENT, Chairman Finerty adjourned the meeting at 5:24 p.m.
CINDY FINERTY, CHAIRMAN
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
PALM DESERT REDEVELOPMENT AGENCY
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