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
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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.
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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
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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.
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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
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capital public improvement and redevelopment projects to be
undertaken in Fiscal Year 2006/07 — funds are available in Account
No. 850-4195-466-3092.
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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
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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
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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.
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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
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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.
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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
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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
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