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Home My WebLink AboutPRELIM - RDA - 01/10/08D PRELIMINARY MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JANUARY 10, 2008 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. Chairman Benson convened the meeting at 3:01 p.m. II. ROLL CALL Present: Member Jim Ferguson Member Cindy Finerty Member Richard S. Kelly Vice Chairman Robert A. Spiegel Chairman Jean M. Benson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Homer Croy, ACM for Development Services 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 David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Jorge Rodriguez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CalFire Frank Taylor, 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: PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING 1) Property: APN 627-122-013 Negotiating Parties: Agency: Justin McCarthy/Martin Alvarez/ Palm Desert Redevelopment Agency Property Owner: Michael E. Bloom/Richard D. Under Negotiation: x Price x DRAFT JANUARY 10, 2008 Bloom Terms of Payment Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the Agency Board, Chairman Benson adjourned the meeting to Closed Session at 3:05 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. Mr. Erwin reported that in the Closed Session just ended, the Agency Board unanimously approved authorizing acquisition and appropriation of $1.7 million for the property known as Assessor's Parcel Number 627-122-013. V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meetings of December 13, 2007, and December 27, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 137RDA, 142RDA, 147RDA, 150RDA, 152RDA, 138-Housing, 143-Housing, 148-Housing, 150-Housing, 153-Housing, 139HA, 144HA, 149HA, and 154HA. Rec: Approve as presented. C. CITY/AGENCY COMPLIANCE ANALYSIS and Investment Reports for the Months of September 2007 and October 2007 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. 2 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2008 D. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA #4 Meeting Minutes for September 17, 2007. Rec: Receive and file. E. REQUEST FOR APPROVAL of Change Order No. 2 to Contract No. R23210 — Construction of Freedom Park (Joint Consideration with the Palm Desert City Council). Rec: By Minute Motion: 1) Approve the Riverside County Department of Environmental Health's required changes to the Freedom Park Concession Building; 2) approve Change Order No. 2 in the amount of $23,765.75 to the subject contract with Simon Contracting, Indio, California, and allocate funds for the aforementioned changes to the Freedom Park Concession Building from the Freedom Park project contingency, Account No. 851-4670-454-4001. F. REQUEST FOR ACCEPTANCE OF WORK for Contract No. R23210 — Construction of Freedom Park (Simon Contracting, Indio, CA) (Joint Consideration with the Palm Desert City Council). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Upon a motion by Spiegel, second by Finerty, and a 5-0 vote of the Agency Board, the Consent Calendar was approved as presented. Vil. CONSENT ITEMS HELD OVER None Vill. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None 3 DRAFT PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2008 XI. OLD BUSINESS A. CONSIDERATION OF THE ACCEPTANCE OF PROPOSED CURE OF DEFAULT FOR PALMS TO PINES EAST, DEVELOPER AMERICAN INVESTMENT, LLC, AND REQUEST FOR AUTHORIZATION OF FINAL DISBURSEMENT OF FUNDING IN ACCORDANCE WITH PARAMETERS SET FORTH IN CONTRACT (CONTRACT NO. R19820A). Member Ferguson moved to, by Minute Motion: 1) Accept the proposed cure for default for the Palms to Pines East Development; 2) authorize the final disbursement of funding in accordance with Contract No. R19820A and all relevant amendments — funds are available in Account No. 850-4435-464-4001. Motion was seconded by Finerty. Mr. Erwin called attention to communication received this date from Shelby Framing regarding a Stop Notice. Member Ferguson asked if the City was responsible for paying the contractor's subcontractor. Mr. McCarthy responded it was not. Mr. Erwin stated the document was a potential Stop Notice, which if timely filed, could cause the City to retain 125% of the requested amount. However, he didn't know whether the Stop Notice was timely filed. Upon further question, he recommended authorizing the payment and finalization subject to review and approval. A report will come back to Council on whether an amount was due or not. In other words, the City could pay what was due over and above 125% of the value of the Stop Notice immediately, and withhold the 125% amount until the City had an opportunity to check into the timely filing of the Stop Notice. Member Ferguson noted the Stop Notice was $18,000 on a project that was more than $1 million. He asked if the City was required to withhold 125% of the $18,000 if the Stop Notice was timely filed. Mr. Erwin answered yes. Member Kelly stated he received a complaint from one of the tenants about the roof leaking from the rain after the roof work had been completed. He had asked someone to look into it. Mr. McCarthy recalled that Mr. Ortega referred the matter to staff and found that the Agency's scope of work was related to the facade. He said there may had been some tie-ins to the roof, but the roof itself was not part of the scope of work. Staff had mobilized Code Enforcement and the appropriate 0 D-% rtwl AFT PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2008 Building and Safety staff to addressed the matter from the regulatory perspective of the City, but contractually, the City did not have any involvement relative to this agreement. Member Kelly asked if the City had any regard to Shelby Framing. Mr. McCarthy responded the matter had to do with legal issues identified with the City Attorney. Efforts were made on the part of contractors and tenants to attempt to insert the City and the Agency in their contractual issues; between the tenant and the landlord, and between the landlord and the contractors. Staff was advised by Agency counsel to be very circumspect to ensure it didn't happen. He recognized that Shelby Framing had certain rights with respect to withholding funds, and the City will honor whatever it's obliged to under the law. However, if the City stepped into the situation, it would then insert itself into a liability stream. Member Kelly suggested the next time a lot of money was spent on a project that staff make sure everything gets taken care of, like the roof for instance. Chairman Benson called for the vote, with recommendation modified to withhold 125% of the value of the Stop Notice filed by Shelby Framing and received January 10, 2008, subject to its review and approval. The motion carried by a 5-0 vote. 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 None PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2008 XIV. ADJOURNMENT Upon a motion by Spiegel, second by Finerty, and unanimous vote of the Agency Board, Chairman Benson adjourned the meeting at 5:50 p.m. to Tuesday, January 15, 2008, at 8:00 a.m. at the Desert Springs J. W. Marriott Resort & Spa, 74-855 Country Club Drive, Palm Desert. ATTEST: JEAN M. BENSON, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY Al