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HomeMy WebLinkAboutPRELIM - RDA - 07/13/06PRELIMINARY MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JULY 13, 2006 CIVIC CENTER COUNCIL CHAMBER CALL TO ORDER - 3:00 P.M. Chairman Ferguson convened the meeting at 3:00 p.m. II. ROLL CALL Present: Member Jean M. Benson Vice Chairman Richard S. Kelly Member Robert A. Spiegel Chairman Jim Ferguson Also Present: Justin McCarthy, Acting City Manager David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer David Yrigoyen, Director of Redevelopment & Housing John Garcia, Engineering Manager Craig Kilday, Chief of Police, Palm Desert Police/Riverside Co. Sheriff's Dept. Walt Holloway, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 74-000 Shadow Mountain Drive (APN 625-132-046) Negotiating Parties: Agency: Justin McCarthy/Lauri Aylaian/ Palm Desert Redevelopment Agency Property Owner: Richard Oliphant Under Negotiation: x Price x Terms of Payment 2) Property: 15.62 acres, APNs 624-160-001/002 Negotiating Parties: Agency: Carlos L. Ortega/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Coachella Valley Recreation & Park District Under Negotiation: x Price x Terms of Payment With Agency Board concurrence, Chairman Ferguson adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:01 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. ►= VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Chairman Jim Ferguson VII. INVOCATION - Member Jean M. Benson VIII. ORAL COMMUNICATIONS - B MS. FRAN ESPINOSA, of El Cortez Way, Palm Desert, said her home was on the portion of El Cortez Way just off Portola Avenue, between Fred Waring Drive and Highway 111. She commented that the property adjacent to hers was formerly owned by the defunct Palm Desert Water & Services District and was currently a vacant lot. She noted that when Portola was widened, a wall was constructed along each of the approximately nine City -owned properties there; but none was installed 2 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 on the lot next to her property. She asked that a wall be installed along the property line to divide her property from the Redevelopment Agency's. Chairman Ferguson invited Ms. Espinosa to discuss the matter with Mr. McCarthy. MR. ALAN SCHIFF, resident of Via Amormio, Palm Desert, addressed the City Council to report that he'd recently installed 64 solar panels on his home, to do his part for renewable energy, utilizing his own retirement savings for the project that was hoped to help alleviate the $1,000/month electric bills during the summer. He said they calculated it would take 10+ years to break even on the expense of the panels and installation. He felt that the great majority of people in the area cannot afford to install this type of energy conservation system. He asked why the Federal and State Governments weren't doing their part and why builders in this area aren't encouraged to install solar panels on the roofs of new homes in the Coachella Valley —it would have been a great selling point when he purchased his home. He felt City government in the area should require builders to add solar panels to their building plans in order to get approval to build, which would provide the homeowner the ability to amortize the cost of the solar energy over the life of the mortgage, making it easier to afford this important energy saver. He noted that a copy of his remarks had also been sent to Senators Barbara Boxer and Dianne Feinstein, as well as Governor Arnold Schwarzenegger. Chairman Ferguson advised Mr. Schiff that the City Council would be introducing an ordinance on its agenda today that does exactly as he suggested. MS. MARI SCHMIDT, resident of Indian Springs Mobile Home Park, Palm Desert, said she'd come to the meeting today to express appreciation to former Councilman Buford Crites for his long service to the City. She said they hoped he would be at today's meeting but had misinterpreted the effective date of his resignation. However, they wanted to go on record that they were deeply grateful for his long service; they'd always felt him to be thorough, very diligent, and fair with his decisions, and they wanted to thank him. Chairman Ferguson noted the matter of Mr. Crites' vacancy would also be addressed later on the City Council agenda today. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING THE WEEK OF JULY 16 - 22, 2006, AS "PROBATION, PAROLE, AND COMMUNITY SUPERVISION WEEK" IN THE CITY OF PALM DESERT. 3 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 Representatives from the Riverside County Juvenile Probation Department were unable to be present for this recognition. However, Chairman/Mayor Ferguson said as an attorney involved in the legal process, he felt probation officers were absolutely indispensable; and our society's system of rehabilitation and criminal justice could not operate without them. He said the City Council's proclamation would be provided to them in honor of next week's designation. B. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT/ PALM DESERT REDEVELOPMENT AGENCY EMPLOYEES FOR EXCEPTIONAL SERVICE — JUNE 2006. Chairman/Mayor Ferguson and Mr. McCarthy recognized the following employees for outstanding performance each with a printed certificate and a $100 gift certificate: Jason Finley and Ruth Ann Moore, and to Page Garner, who was unable to be present for last month's presentation. X. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meeting of June 22, 2006. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 256RDA, 258RDA, 261 RDA, 263RDA, 266RDA, 255-Housing, 259-Housing, 261-Housing, 264-Housing, 267-Housing, and 260HA. Rec: Approve as presented. C. CITY'S/AGENCY'S COMPLIANCE ANALYSIS and Investment Reports for May 2006 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. D. REQUEST FOR RATIFICATION of Professional Services Agreement to Obtain Miscellaneous Acquisition and Relocation Services for Redevelopment and Public Improvements Projects (Contract No. R25460). Rec: By Minute Motion, ratify the subject agreement in an amount not to exceed $10,000 with Overland Pacific & Cutler, Inc., Palm Desert, California, for performing professional services associated with the acquisition of various commercial and residential properties, and the relocation of any occupants of those properties, associated with 12 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 capital public improvement and redevelopment projects to be undertaken in Fiscal Year 2006/07 — funds are available in Account No. 850-4195-466-3092. 5 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 E. REQUEST FOR RATIFICATION of Professional Services Agreement to Obtain Miscellaneous Acquisition and Relocation Services Involving Single-family and Multi -family Properties and Vacant Lands for the City's Affordable Housing Program (Contract No. R25470). Rec: By Minute Motion, ratify the subject agreement in an amount not to exceed $10,000 with Overland Pacific & Cutler, Inc., Palm Desert, California, for performing professional services associated with the investigation and acquisition of potential properties to be used in the City's Affordable Housing Program, and to relocate any qualifying occupants of those properties — funds are available in Account No. 870-4195-466-3092. Upon motion by Kelly, second by Spiegel, the Consent Calendar was approved as presented by a 4-0 vote of the Agency Board. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS None XIII. NEW BUSINESS None XIV. CONTINUED BUSINESS A. MINUTES OF THE REGULAR REDEVELOPMENT AGENCY MEETING OF JUNE 8, 2006 (Continued from the meeting of June 22, 2006). Member Spiegel moved to, by Minute Motion, approve the Minutes of June 8, 2006, as presented. Motion was seconded by Kelly and carried by a 4-0 vote. XV. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE HENDERSON COMMUNITY BUILDING (CONTRACT NO. R22600A). Member Kelly moved to, by Minute Motion: 1) Authorize award of the subject contract in the amount of $4,540,000 to Steton Construction Group, Brea, California, for 0 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 construction of the new, 5,800-square-foot Henderson Community Building at the Entrada del Paseo site; 2) appropriate the remaining contract amount and contingency of $1,494,000from Unobligated Agency funds (original budgetforthe Henderson Community Building has allocated $3,500,000 in Account No. 850-4358-433-4001 for FY 2006/07); 3) authorize the Director of Finance to set aside the amount of $454,000 as 10% contingency for the project (use of contingency requires additional action). Motion was seconded by Benson and carried by a 4-0 vote. B. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 3 TO CONTRACT NO. R21780 FOR CONSTRUCTION OF THE PALM VILLAGE APARTMENTS. Member Benson moved to, by Minute Motion: 1) Approve Construction Change Order No. 3 to the subject contract with Taylor Frager, Inc., Temecula, California, in the amount of $95,885.05 with five (5) additional days to the contract time and the Chairman to execute the Change Order; 2) authorize the Director of Finance to transfer said funds from contingency to base for the subject project (Account No. 870-4349-433-4001) for Change Order No. 3. Motion was seconded by Kelly and carried by a 4-0 vote. C. REQUEST FOR APPROVAL OF AMENDMENT NO. 2 TO CONTRACT NO. HA23010A — ARCHITECTURAL SERVICES FOR LAGUNA PALMS APARTMENTS. Member Kelly moved to, by Minute Motion: 1) Approve Contract Amendment No. 2 in an amount not to exceed $30,565 to the subject contract with Prest Vuksic, Inc., Palm Desert, California, for additional architectural services — funds are available in the FY 2006/07 Capital Improvement Budget, Account No. 870-4481-464-4001; 2) authorize additional reimbursables of $2,500; 3) authorize the Chairman or his designee to execute all the necessary documents related to the Change Order request. Motion was seconded by Benson and carried by a 4-0 vote. With Agency Board concurrence, New Business Items D and E were considered jointly. Please see the Agency Board's discussion reflected with Item D. D. REQUEST FOR APPROVAL OF AMENDMENT NO. 2 TO CONTRACT NO. R23390 FOR DEVELOPMENT OF THE FALCON CREST AND LA ROCCA VILLAS PROJECTS (A.K.A. 20-ACRE SITE). Member Kelly moved to, by Minute Motion: 1) Approve Amendment No. 2 in the amount of $509,284 to the subject contract with ComDyn PD, LLC, Santa Monica, California, for the purpose of increasing the scope of work that includes Agency -approved changes to design and engineering, energy efficiency measures, housing mix, and 7 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 increases to public agency permits and impact fees, and the Chairman to execute the Amendment; 2) appropriate $509,284 from the Unobligated 20% Housing Set -aside Fund monies to Account No. 870-4698-466-4001 for this purpose. Motion was seconded by Benson. Member Spiegel stated the Council was considering a large amount of money for the Photovoltaic Solar Systems for new houses. In this particular case, the amount considered was $1.5 million, and he understood the payoff to be 16 to 18 years. Senior Management Analyst Catherine Walker replied that it was approximately 14 years. Member Spiegel said the City made a commitment to reduce energy usage in Palm Desert by 30%, for which conservation measures for new construction has been implemented. He questioned what was being done for the existing residents. Mr. Conlon replied that a proposed Palm Desert Energy Conservation Program was forthcoming, which addressed new construction and existing inventory. He said the proposal was in the application stages with the California Public Utilities Commission for high -efficiency air conditioning and appliance -type cost saving measures. Staff was also researching additional funding for the Photovoltaic Solar Panels from various energy conservation nonprofit organizations for the residents with existing homes. He said the goal was to bring more money into the City of Palm Desert on top of what the State of California was already offering. He noted this application was not part of the Southern California Edison Program. Member Spiegel asked if staff had looked into winter base -line rate vs. the summer base -line rate for the residents of Palm Desert. Mr. Conlon responded the base line rate was a highly contested item with the Public Utilities Commission, because Southern California Edison started their higher summer base -line allowances in June, and it was felt that the allowances should start in May. He said this type of issue would need to be addressed through the Legislature and the California Public Utilities Commission. Member Spiegel stated he used a lot more kilowatt hours in June, and his electricity bill was higher in May than it was in June because of the difference between Winter and Summer rates. 0 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 Mr. Conlon said Edison had three rates, winter, mid -season, and summer. He felt the desert's area climate zone should be taken into consideration as opposed to a standard uniform policy spread throughout Edison's service area. He believed a strong argument could be made but questioned whether it could get action. Member Spiegel felt that something needed to be pursued that would take care of the residents currently living in Palm Desert, not just the incoming new residents. He thought a new air conditioner or refrigerator was great, but what if they weren't needed by the resident. Mr. Conlon stated that's where photovoltaic solar panels would come in, because they performed excellently in the desert's climate zone. He noted, however, that the panels were expensive. Member Kelly commented the City had not really done anything for new construction other than conditioning the builder to provide photovoltaic solar panels and having the builder pay for them. He felt the City had not done anything for anyone. Member Spiegel agreed with Member Kelly's remarks and went on to say he wasn't sure he would invest in solar panels because it would take 18 years to pay them off. He said a good percentage of the residents, according to the average age of the residents of Palm Desert, may not be around in18 years, and something else may be available at that time. He would like to figure out another type of incentive to be offered to the residents. Mr. Conlon pointed out the item presented for action here had a 14-year payback, with projections based on current Southern California Edison rates. Member Kelly concurred with Member Spiegel that a payback of 18 years was too long. He voted for the projects because he believed the City has an obligation to help develop better solar panel programs that would be practical five or ten years later. However, he does have concerns and reservations about having to condition residents to install solar panels. Member Spiegel said he agreed with Member Kelly's comments and was not voting against the project but stated he was more interested in finding a way to reduce electric bills for current Palm Desert residents. In response to Mr. Conlon's comment, Member Kelly said when dealing with the Public Utilities Commission, the City of Palm Desert would not accomplish anything by itself; it would take the whole Coachella Valley. He 0 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 said the summer base rate was a benefit to the residents of Palm Desert and was made possible by prior officials who worked hard to get it 10 or 15 years ago. He said the base rate was actually subsidized by consumers in other areas of the region, and he felt it should be appreciated. 10 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 Chairman Ferguson noted that Mr. Conlon was working to get the Public Utilities Commission to release monies already paid to them for energy conservation; the Commission was not giving the City back anything other than its own money. He said the process was a regulatory bureaucratic mess, but the City was fighting the fight believing it would be successful. He further noted that residents were required to pay $8.00/month to recycle because it was the right thing to do. He acknowledged the economic argument to want to reduce monthly bills but stated there was also the need to reduce energy consumption in California. In response to Chairman Ferguson's remarks regarding recycling, Member Kelly disagreed that the resident paid for recycling; the City and the residents made money by recycling. He said recycling was a far better conservation program because it made a profit and saved world resources. Chairman Ferguson called for the vote, and the motion carried by a 4-0 vote. E. REQUEST FOR APPROVAL OF AMENDMENT NO. 3 TO CONTRACT NO. R23390 FOR DEVELOPMENT OF THE FALCON CREST AND LA ROCCA VILLAS PROJECTS (A.K.A. 20-ACRE SITE). Please see Item D for discussion on this item. Item D and E were considered jointly. Member Kelly moved to, by Minute Motion: 1) Approve Amendment No. 3 in the amount of $1,425,347 to the subject contract with ComDyn PD, LLC, Santa Monica, California, for a change in the project scope to include the implementation of a photovoltaic (PV) system at the Falcon Crest and La Rocca Villas developments, and the Chairman to execute the Amendment; 2) appropriate $1,425,347 from the Unobligated 20% Set -aside monies to Account No. 870-4698-466-4001 for this purpose. Motion was seconded by Benson and carried by a 4-0 vote. XVI. PUBLIC HEARINGS None XVII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL 11 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JULY 13, 2006 None C. CHAIRMAN AND MEMBERS OF THE AGENCY None XVIII. ADJOURNMENT With Agency Board concurrence, Chairman Ferguson adjourned the meeting at 5:29 p.m. ATTEST: JIM FERGUSON, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY 12