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HomeMy WebLinkAboutPRELIM - RDA - 02/08/07DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, FEBRUARY 8, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Chairman Kelly convened the meeting at 3:03 p.m. 11. 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 Mark Greenwood, Acting ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Steve Smith, Acting Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Frankie Riddle, Director of Special Programs Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: None Upon a motion by Spiegel, second by Finerty, and 3-0 vote of the Agency Board, with Benson and Ferguson ABSENT, Chairman Kelly adjourned the meeting to Closed Session of the City Council at 3:03 p.m. He reconvened the meeting at 4:00 p.m. PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING 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 DRAFT FEBRUARY 8, 2007 A. MINUTES of the Regular Redevelopment Agency Meeting of January 25, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 134RDA, 151 RDA, 157RDA, 159RDA, 161 RDA, 134-Housing, 148-Housing, 149-Housing, 152-Housing, 155-Housing, 157-Housing, 162-Housing, 163-Housing, and 153HA. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of November 2006 and December 2006 (Joint Consideration with the Palm Desert City Council). This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. D. REQUEST FOR APPROVAL of the City of Palm Desert Treasury Policies and Procedures, As Amended (Joint Consideration with the Palm Desert City Council and the Palm Desert Housing Authority). Rec: By Minute Motion, adopt the City of Palm Desert Treasury Policies and Procedures, as amended. E. REQUEST FOR APPROVAL of the Extension of Contract to Perform Auditing Services for the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority (Contract No. C20185) (Joint Consideration with the Palm Desert City Council and the Palm Desert Housing Authority). This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. 2 DRAFT PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 F. REQUEST FOR AUTHORIZATION of the Southern California Edison Applications and Contracts for Electric Service Forms for Streetlights at Falcon Crest and La Rocca Villas Developments (Contract No. R23390F). Rec: By Minute Motion, authorize the Executive Director to sign the subject applications and contract for electric service forms. G. REQUEST FOR RATIFICATION of Amendment No. 2 to Contract No. R22340 — Architectural Services to Design a 27-unit Senior Housing Complex (La Rocca Villas) and a Community Room Located Between Merle Drive and 42nd Avenue. Rec: By Minute Motion: 1) Ratify Amendment No. 2 in an amount not to exceed $5,000 to the subject contract with Kristi Hanson, Inc., Palm Desert, California ($4,500 - design; $500 - reimbursables), for additional architectural design work associated with the management/laundry facility at La Rocca Villas; 2) authorize the Chairman to execute same; 3) authorize the Director of Finance to transfer $5,000 from contingency to base for the contract — funds are available in Account No. 870-4698-466-4001. Member Finerty requested that item C be discussed separately and Member Spiegel requested Item E be discussed separately. Upon motion by Spiegel, second by Finerty, and 5-0 vote of the Agency Board, the remainder of the Consent Calendar was approved as presented. Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the Agency Board, Consent Calendar Item H was added to the agenda. H. REQUEST FOR RATIFICATION of the Executive Director's Approval of a Grant of Easement/Pipeline at Entrada del Paseo. Member Spiegel moved to, by Minute Motion, ratify the Executive Director's approval of a Grant of Easement/Pipeline to the Coachella Valley Water District to build and maintain an underground pipeline at Entrada del Paseo. Motion was seconded by Benson. Member Ferguson asked if this item was necessitated by the restaurant in the Henderson Community Building. Redevelopment Manager, Lauri Aylaian replied that it was. Upon further question, she confirmed the subject easement would not cause any conflict with current construction design and engineering plans. She stated the work to install the water and sewer system the easement allowed, was included in the Jacobbson Engineering contract. 3 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 Mayor Kelly called for the vote and the motion carried by a 5-0 vote. VII. CONSENT ITEMS HELD OVER C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of November 2006 and December 2006 (Joint Consideration with the Palm Desert City Council). Councilmember/Member Finerty stated she was concerned with the amount of money invested in the Ford Motor Credit Corp (FMCC). She stated the City was receiving a decent rate and noted the maturity date was June 2007; however, Moody's and Standard and Poors (S&P) rated it B and 131. The November Portfolio Holdings showed the City invested 5.31 % in the FMCC, and the Redevelopment Agency also invested a fair amount with FMCC; however, that coupon matured January 2006. It concerned her that $13 million was invested with FMCC with a rating of B and 131. She pointed out that on page 41, the Auditors address a policy which obligated the City to only invest in AAA rating items. Additionally, she noticed the State of California Local Agency Investment Fund (LAIF) was unrated. Mr. Gibson responded FMCC was initially acquired through the requirement of the State of California. The option of selling it was discussed at the Investment and Finance Committee, and it was decided to keep it until its maturity date of June 2007; there was little risk of it defaulting. He said FMCC and the Corporation had $32 billion in cash assets and selling it would be a greater risk. With regards to LAIF, he said it was the State of California that invested those funds in items the City could also invest in. He noted the City had no losses in past years and there was very little risk of it defaulting, and it was State practice to not be audited by Moody's or S&P. Upon further question, Mr. Gibson affirmed the coupon that matured January 2006 was redeemed and invested in an A rating item; he planned to do the same with the one maturing June 2007. He went on to say, the City would no longer invest in Ford Motor Credit Corp because it was not on the approved list of items the City could purchase. Councilmember/Member Finerty moved to, by Minute Motion, receive and file the Compliance Analysis and Investment Reports for November and December. Motion was seconded by Ferguson and carried by a 5-0 vote. E. REQUEST FOR APPROVAL of the Extension of Contract to Perform Auditing Services for the City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority (Contract No. C20185) (Joint Consideration with the Palm Desert City Council and the Palm Desert Housing Authority). 4 DRAFT PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 Councilman/Member Spiegel stated he was of the understanding the City would go out to bid after the initial five-year contract expired. Mr. Gibson recalled the matter was discussed with the previous proposal and the committee adopted a policy. That policy stated that after the five-year contract expired, the committee could revisit and either make a recommendation to continue with the same firm or go out to Request for Proposal (RFP). The committee chose to extend the contract five years based on that policy. The Government Finance Officers Association (GFOA) who is the City's finance officers group recommended a maximum of ten years to contract with an audit firm. He stated the finance department was currently working on Section 29, University Park, and other bond issues and staff was requesting the contract to be extended in order to deal with those matters. Councilman/Member Spiegel suggested extending the contract for one year and revisit the matter at that time to consider whether to initiate a new RFP. Mr. Gibson agreed. Councilman/Member Spiegel moved to, by Minute Motion, approve the extension of the subject contract with Lance Soll & Lunghard LLP, Brea, California, as amended, with a one-year extension of the contract, staff directed to bring the matter back at the appropriate time for a discussion on further extension or initiation of a new RFP for Auditing Services. Motion was seconded by Ferguson and carried by a 5-0 vote. VIII. RESOLUTIONS A. RESOLUTION NO. 539 - A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, AMENDING THE FISCAL YEAR 2006107 BUDGET AS A RESULT OF MID -YEAR ADJUSTMENTS. Member Spiegel moved to waive further reading and adopt Resolution No. 539. Motion was seconded by Benson and carried by a 5-0 vote. IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED AT 75-424 WILDFLOWER LANE (APN 634-061-006) - DESERT ROSE - PALM DESERT. Member Spiegel moved to, by Minute Motion: 1) Authorize acquisition of the subject property for the purpose of retaining affordability covenants and resale, if necessary, in anticipation of the expiration of the 60-day Right -of -Refusal Period; 2) approve a Silent Second Trust Deed in an amount necessary to secure an affordable housing cost pursuant to Redevelopment Law for either a direct sale or Agency sale; 3) authorize the Executive Director to execute any documents necessary to facilitate this transaction — funds are 5 .� S. Wo PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 available in the Housing Set -aside Fund. Motion was seconded by Benson and carried by a 5-0 vote. B. REQUEST FOR AUTHORIZATION TO MODIFY THE USE OF FUNDS APPROPRIATED FOR THE COST OF CONSTRUCTION OF A STORAGE FACILITY AT JOSLYN SENIOR CENTER FOR A PREFABRICATED STORAGE SHED, PREPARATION OF AN EXPANSION MASTER PLAN FOR THE CENTER, AND RESURFACING THE CENTER PARKING LOT. Responding to question, Mr. McCarthy stated that Council previously authorized $70,000 for replacement of a storage facility. He said the Joslyn Senior Center reconsidered the need for a permanent storage facility and was requesting a modification to use the funds for planning purposes, acquisition of interim storage, and re -surfacing of the parking area; currently in a deteriorating condition. Member Spiegel inquired if that meant the elimination of the lawn bowling. Mr. McCarthy stated the request did not imply that; the request was for alternative use of the funds. Member Finerty stated Mr. Rittenhouse's letter was requesting that remaining monies be used to resurface the parking lot, claiming its not been done in a long time, and currently contained many tripping hazards. She said if the information was accurate, why not take care of filling in the cracks to eliminate the tripping hazards first and then the parking, before worrying about master planning. Secondly, she asked if the Joslyn Senior Center had a reserve set aside for taking care of the parking lot. Mr. McCarthy stated he could not comment on their reserve; however, if Council wished to caveat its motion that priority be given to the parking lot, staff would communicate that with the Joslyn Senior Center and make it a condition of Council's approval. Member Finerty stated the Agency provided the Joslyn Senior Center $70,000 for one intent and they have changed the game plan. She thought Council first needed to find out if the Josyln Senior Center had a reserve before allowing them to use $70,000 to master plan without addressing the parking lot. Member Spiegel stated the $70,000 was a trade; they gave the City land for the housing facility. Mr. McCarthy stated there was no urgency on this item and funds hadn't been released. He said he spoke with Mr. Rittenhouse earlier in the afternoon and had extended his regrets for not being able to attend, but that Mr. Rittenhouse was planning to be present at the next meeting to provide C] -ad J7u4u PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 a presentation to Council. He said if Council continued this item, some of the questions can be answered at that meeting. Vice Chairman Benson stated she recalled the Joslyn Senior Center was part of the Cove Communities and funded by three cities. She said if that was the case, the City should only contribute $20,000-$25,000 for their master plan study. She wasn't aware of any other group that paid for their master planning. Responding to comments as to why the City of Palm Desert was being asked to fund their master planning, Mr. McCarthy clarified the $70,000 was a reimbursement for destroying a storage facility that was on their property to accommodate the agency's development. Mr. McCarthy recommended a continuance in order to address all the questions raised. Member Spiegel moved to continue the matterto the meeting of February 22, 2007. Motion was seconded by Finerty and carried by a 5-0 vote. X. CONTINUED BUSINESS A. CONSIDERATION OF REQUEST FOR SUBSTITUTION OF SUBCONTRACTOR FOR THE CONSTRUCTION OF THE HENDERSON COMMUNITY BUILDING PROJECT (CONTRACT NO. R22600A) (Continued from the meeting of January 25, 2007). Member Finerty stated she read all the documents and correspondence that went back and forth and believed that AB Lujan Company had ample time to obtain insurance and to get the contractor's license up-to-date. She stated that she disagreed with staff recommendation to deny the substitution. Project Coordinator Missy Wightman, stated initially they recommended a denial of the substitution; however, based on documentation received from Steton Construction Group, staffs own evaluation and conversations with representatives of the California Contractor State License Board, and AB Lujan's current bonding company, staff changed their recommendation to approve the substitution. Member Finerty moved to, by Minute Motion, approved the request for substitution of AB Lujan Co., Garden Grove, California, with Williams Mechanical, Inc., Palm Desert, California, for the subject contract with Steton Construction Group, Brea, California. Responding to question as to why staff changed their recommendation, Ms. Wightman stated Steton Construction Group provided documentation that proved the sub -contractor did not have a valid sub -contractor's license at the time they were attempting to execute the sub -contract. 7 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 MR. ANTONIO LUJAN, owner of the AB Lujan Company, Garden Grove, stated he had the sub -contractor license and bond in his possession and was ready to perform the job. He stated that he also had the workman compensation documents in his possession. Ms. Wightman stated it appeared that bonding was currently in place, but at the time the sub -contract needed to be executed from September 13, 2006 to October 10, 2007, a bond was not in place. MS. PHYLLIS ST. GEORGE, Principal with Steton Construction Group, stated the documents they provided to City staff were clear; they did everything that was proper and legal in accordance with the State Contractor's Law and the Palm Desert Municipal Code. She said Mr. Lujan did not have a valid contractor's license and bond when he bid the project or when the contract needed to be executed. She went on to say, numerous e-mails, faxes, and letters were sent to him, and he didn't respond until much later. Member Finerty noted document dated September 14, included in Council's packet, revealed that Mr. Lujan's License was under suspension for a number of reasons relating to the bond, and the same report dated January 31, indicated the License was again under suspension for the same reason. MR. LUJAN stated he had the bond in place since September and didn't know what had happened. He said he communicated many times that he had the bond in place, and they kept telling him it was not. He again reiterated that he had the documents in his possession. Ms. Aylaian stated she recognized that in general, anytime you had two different parties, you end up with two different stories. She said staff decided to contact an independent third party which was the State Contractor's License Board; they demonstrated that at the time the bids were opened for the general contractor, a license was in place; subsequently, the license was suspended during the period that the sub -contract needed to be signed in order for the work to be performed, Therefore, staff recommended for approval of the substitution. Upon further question, Ms. Aylaian confirmed it was legally improper for the Agency to continue with AB Lujan Company because the Licensured was not in place. Member Ferguson said it was great the substituted vendor was locally located in Palm Desert; however, they were the next lowest responsible qualifying bidder. He said he felt bad for Mr. Lujan, unfortunately, the documentation did not allow the Agency to move foward with his company. Member Ferguson seconded the motion and it carried by a 5-0 vote. :] PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING FEBRUARY 8, 2007 XI. OLD BUSINESS None 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 XIV. ADJOURNMENT Upon a motion by Spiegel, second by Ferguson, and unanimous vote of the Agency Board, Chairman Kelly adjourned the meeting at 5:25 p.m. RICHARD S. KELLY, CHAIRMAN ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY