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HomeMy WebLinkAboutPrelim - RDA - 06/25/09DRAFT PRELIMINARY MINUTES -'F REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, JUNE 25, 2009 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. Chairman Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Excused Absence: Member Jean M. Benson Member Richard S. Kelly Member Jim Ferguson arrived at 3:04 p.m. Vice Chairman Cindy Finerty Chairman Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Steve Brooker, Battalion Chief, Palm Desert Fire/Riverside Co. Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: None Fire Dept./Cal Fire Sheriff's Dept. PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 With Agency Board concurrence, Chairman Spiegel adjourned the meeting to Closed Session of the City Council at 3:01 p.m. He 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 11, 2009. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 275RDA, 278RDA, 280RDA, 276-Housing, 278-Housing, 281-Housing, 277HA, and 282HA. Rec: Approve as presented. C. REQUEST FOR AUTHORIZATION, to Seek Bids for Construction of the Southern Ring Road Extension at the California State University, San Bernardino, Palm Desert Campus (Contract No. R28830) (Joint Consideration with the Palm Desert City Council). Removed for separate consideration under Section VI I, Consent Items Held Over. Please see that portion of the Minutes for Council/Agency discussion and action. D. REQUEST FOR AUTHORIZATION, to Issue a Request for Proposals (RFP) for the Construction of a "For -sale" Affordable Residential Project Consisting of Fourteen (14) Single-family Detached Self-help Units (Contract No. R29130). Rec: By Minute Motion, authorize staff to issue an RFP for the construction of a for -sale affordable residential project consisting of 14 single- family detached self-help units. 01, PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 Member Finerty requested Item C be removed for separate action under Section VII, Consent Items Held Over. Upon a motion by Finerty, second by Benson, and 3-0 vote of the Agency Board, with Ferguson and Kelly ABSENT, the remainder of the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER C. REQUEST FOR AUTHORIZATION to Seek Bids for Construction of the Southern Ring Road Extension at the California State University, San Bernardino, Palm Desert Campus (Contract No. R28830) (Joint Consideration with the Palm Desert City Council). Vice Chairman/Mayor Pro Tern Finerty stated she pulled this item because a $1.5 million item was a large amount to have on the consent calendar. Secondly, she had requested that the minutes be pulled because the staff report suggested that the Redevelopment Agency had earmarked $1.5 million to fund the project, but she was concerned about the lack of landscaping. She said the City had a memo from the City Manager stating that CSUSB was ready to go with the project, and she assumed funding was in place because the work was scheduled to be completed by September 11. However, it was a different story with the University of California, Riverside (UCR), and she didn't know how much money was set aside. She invited Ms. Carolyn Stark to answer some questions. MS. CAROLYN STARK, Assistant Executive Vice Chancellor and Executive Director of UCR - Palm Desert Graduate Center stated the UCR project was on track with funds set aside. She said the same landscape architect will be retained by Cal State in design contract. She said the project should be out to bid by late July, and despite the State budget problems, she anticipated no delays because funds were allocated from the current year's budget. The contract is to be awarded by the end of August with work to begin soon after. Responding to question, she said $125,000 was set aside. Vice Chairman/Mayor Pro Tern Finerty stated she was informed the project would cost $4.5 million. MS. STARK stated that figure included the entire native landscape project, which was nine acres, and it included the view corridor. The project addressed this evening was the streetscape along Cook Street, which was Cal State's responsibility, and the streetscape along Frank Sinatra was UCR's responsibility. Responding to question, she said the balance of the nine acres was still under project negotiation and Cal State and UCR felt strongly to proceed, but given the budget situation, it will be delayed. The streetscape project should take care of the immediate need for appearance tl PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 at the corner, which will include signage that both entities had allocated funds for. She believed lighting would also be included for the signage. The nine acres behind that corner will be done on a more delayed basis. Further responding to question about the time frame on the delay, she said she couldn't answer at this time, but UCR and Cal Sate were as anxious as the City to get it done, and they will proceed as allowed. Member/Councilman Ferguson stated that UCR wouldn't be opposed if the City held off going out to bid on Ring Road until the City had commitments on the landscaping. MS. STARK stated that doing the corner landscaping was a commitment on their part as discussed several weeks ago in the study session. She said Ring Road was an issue of safety with the u-turns that are necessary to get into the campus. Member/Councilman Ferguson stated landscaping had been discussed for ten years, and promises had been made by Mr. Jandt and Ms. Stark and every dollar that came in went vertical, and nothing got done with landscaping. He would like to see Ring Road go through, but not until UCR and CSUSB lived up to their commitment to do the landscaping. MS. STARK replied that the current undertaking indicated a commitment for the streetscape along Frank Sinatra and the corner. Member/Councilmember Benson commented there was nothing on the campus. MS. STARK noted the streetscape on UCR was pretty much complete, it was actually the corner landscaping that had irritated both Cal State and UCR, so it was as urgent for them as it was for the City. Chairman/Mayor Spiegel suggested going out to bid, but not award the contract until the City was satisfied the proper thing was being done for landscaping by both Cal State and UCR. Vice Chairman/Mayor Pro Tern Finerty asked how long would a bid be good for if the City went out to bid. Director of Redevelopment Martin Alvarez responded he believed the bid would be good for 90 days. Vice Chairman/Mayor Pro Tern Finerty stated 90 days wouldn't help the City much, considering Ms. Stark couldn't provide a time frame. 4 PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 Chairman/Mayor Spiegel asked if Cal State and UCR could present to Council its plan and what it had under contract in 90 days. MR. FRED JANDT, Dean of the Palm Desert Campus, CSUSB, stated the streetscape was already designed, the contract had been lead, and it will get done; however, the remaining project was a multimillion dollar project to which they had a design but no donors. Vice Chairman/Mayor Pro Tern Finerty stated when she first got involved in one of the study sessions, she recalled hearing the money was set aside for landscaping, but it was used for construction. MR. JANDT said that was incorrect information. He said money was set aside for landscaping along the street, but not for the view corridor. Mr. Wohlmuth stated he wasn't the City Manager when the original agreement happened, but he met with Ms. Stark this afternoon, and a meeting will be set with Coachella Valley Water District (CVWD), UCR, Cal State, and the City of Palm Desert to discuss the larger project, which he believed can happen well within the 90 days. Vice Chairman/Mayor Pro Tern Finerty moved to continue this item to a date uncertain, pending results of the City Manager's meeting(s) with Coachella Valley Water District and parties suggested by the City Manager. Motion died for lack of a second. Chairman/Mayor Spiegel stated the City had been waiting a long time on the landscaping, but a longer time on Ring Road. He said half the road was built by the Berger Foundation and then it was left barren. The City then installed a stop light that hadn't been activated on Frank Sinatra Drive. He said it was dangerous to get into UCR because one had to make a u-turn on Frank Sinatra Drive to get into the campus. Chairman/Mayor Spiegel moved to, by Minute Motion, authorize staff to seek bids for construction of a portion of the Ring Road at the California State University, San Bernardino, Palm Desert Campus (CSUSB), connecting existing Berger Circle Drive to Frank Sinatra Drive — funds of $1.5 million have been earmarked in the Redevelopment Agency Budget, pending City Council satisfaction on the progress made by Cal State and UCR on the funding of the landscape. Motion died for lack of a second. Member/Councilman Ferguson suggested an amendment to Mayor Pro Tem/Vice Chairman Finerty's original motion to include that under no circumstances will the City move forward on Ring Road until funding was in place. 5 F"% "? FT ':' r PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 Vice Chairman/Mayor Pro Tern Finerty moved to, by Minute Motion continue this item to a date uncertain, pending results of the City Manager's meeting(s) with all interested parties and the understanding that under no circumstances will the Ring Road be pursued until funding is in place for landscaping in its entirety. MR. JANDT asked that the scope of landscaping be addressed. In other words, what was the minimum requirement the Council found successful. Responding to question, he said several different models had already been presented. Vice Chairman/Mayor Pro Tern Finerty said it would be helpful if UCR and Cal State met with CVW D and the City Manager and explain the constraints with money; however, the City still needed something aesthetically pleasing. She said perhaps some sort of partnership and ideas from CVWD would come forward, and those ideas could be presented to the Council. MR. JANDT asked if the Council was open to alternative models. Vice Chairman/Mayor Pro Tern Finerty noted that Mr. Jandt had come up with an a -write ticket of landscaping, which was great, but in this economy it wasn't prudent to spend $4.5 million on landscaping. MR. JANDT agreed, stating they were hoping to reach a consensus, and again asked if the Council was open to other models. Vice Chairman/Mayor Pro Tern Finerty answered yes. Member/Councilman Ferguson seconded the motion, and it carried on a 3-1 vote, with Spiegel voting NO and Kelly ABSENT. VIII. RESOLUTIONS None IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION FOR STAFF TO CONDUCT SURVEY OF THE PALM DESERT COUNTRY CLUB RESIDENTS TO DETERMINE SUPPORT FOR AN ASSESSMENT TO SUPPORT MAINTENANCE OF THE GOLF COURSE. Senior Management Analyst Ryan Stendell noted the staff reportand offered to answer any questions. MR. ROBERT M. YASPAN, Attorney for the Palm Desert Country Club Development offered to answer any questions. A �7a?FT PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 MR. FRED BENFORD, Chairman of Project Area 4 Committee, stated the Committee held a meeting specifically for this item, which was held in the Council Chamber where they had standing room only attendance. The Committee strongly recommended the Council approve taking the next step toward an assessment district. He said he lived in the Palm Desert Country Club (PDCC) for ten years and believed it was a unique community. He said PDCC was and always had been associated with the golf course, and without the golf course it wouldn't be a club at all. The course had undergone many changes over the years, but none had made it as good as it was now. The club house and the renovation of the course was good, and the value of property on and off the course have been improved. The safety and general environment for the whole neighborhood was enhanced overthe past few years. He said the residents couldn't afford to just let things go, and he understood an assessment would be a modest amount for homeowners. He said if the step toward assessment was taken, how long of a period of time would homeowners have to respond to the first communication, because he was concerned for those people who were not here during the summer, and he understood it took 70% of the residents to make the survey, and 50% could then make the final judgement. Lastly, if an assessment district was formed, how would the funds be utilized. MS. BARBARA WALLEN (sp?), stated she lived at Palm Desert Country Club for 21 years and raised her children there. She said there were fewer residents that lived on the course and suggested that maybe a separate vote should take place for those that lived on the course as opposed to those who did not. She said the number of people that didn't live on the course was probably two or three times higher, and those residents may not be as motivated to vote for an assessment. She thought the residents on the course should probably pay more, and she was one that would be happy to do so. MR. BENFORD added that Mr. McCarthy indicated once before that there would be a valued assessment. In other words, those that lived on the golf course would probably have to pay more than those that didn't. The problem was that if you didn't live on the golf course and didn't play golf, it will affect the value of the property no matter what. He felt with an assessment value or benefit value, it should be a community situation assessment rather than just those that lived on the golf course. However, if that was the only way it could be done, it would be fine as well. Chairman Spiegel stated the Council found out a couple of things; first, the people that owned the course have gone into bankruptcy; secondly, the golf course was up for sale. He recommended that the Council leave the matter alone and ask the City Attorney to investigate and find out what exactly was the status. He said the Council will like to get the information from the City Attorney and not from the people that owned the course. 7 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 Member Ferguson concurred with Chairman Spiegel. He said a number of years ago the City was given an offer to "bail out" PDCC by approving 95 home sites on what was otherwise PDCC fairways. He said those home sites generated a certain profit for the owners, and that profit was supposed to go back into maintaining the golf course. He wasn't an accountant, but he did know something about home prices, and he could not see the amount of money generated by the sale of those homes being depleted by the maintenance that had been done on that golf course. He thought before any assessment or vote took place, as a resident and City Councilman, he would want to know who the lender was, what the bankruptcy status was, and how large was the debt. He didn't think this matter was a simple fix with an assessment. MR. DAVID SIMMONS, Operating Manager for Palm Desert Country Club, stated that in February 18, 2009, he wrote a 18-page letter to Mr. Lennard Wolk, who is a financial consultant to the City. In that letter, a complete financial breakdown of PDCC was provided to the City, and a dissertation was included. He said PDCC had been for sale for some time, and it was made known. When one is looking for new investors, he assumed people would know the place was being sold, because donations were not being solicited. He said the information may not have gone from staff to Council, but PDCC had been very transparent with the financials of the Club. As far as bankruptcy was concerned, he said Mr. Yaspan was the attorney for the bankruptcy, which was why he was present this evening to answer any questions about the matter. Chairman Spiegel suggested Mr. Yaspan meet with the City Attorney, who will then return with a recommendation to the City Council. MR. SIMMONS offered to provide to staff and Agendy Board a copy of the February 18`h letter, but it was a confidential document. Vice Chairman Finerty stated she just found out yesterday that the property was listed for almost $12 million on April 26, 2009. On May 1, she and Member Benson met with Larry Kosmont and Randy Case, and they talked about their proposal and some financial difficulties, and the bottom line was that they wanted $200,000 over ten years for a total of $2 million, but they never mentioned they were thinking of selling the property or that the property was listed five days' prior. In addition, many of the homeowners are not happy with the way the course has been maintained. She shared Member Ferguson's concerns, in that before any homeowner did any type of survey for an assessment, they needed to hold the owners accountable. She said the City had a maintenance ordinance that will address foreclosures or any lack of maintenance to the property. The owners who have put all of the homeowners in this potential financial harm are the ones that need to be made accountable. She said it was time for the City to find PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 out who the players are, who owns what, what the actual debt was, and a full accounting of the funds. In addition, the Development Agreement hadn't been lived up to by the owners, so she didn't have a great deal of faith in the current owners based on their history, which was why she would recommend a continuation. MR. SIMMONS reiterated that in the letter of February 18, all the information just mentioned was addressed, including the statement that the golf course was for sale. Vice Chairman Finerty moved to deny the recommendation. Motion was seconded by Ferguson and carried by a 4-0 vote, with Kelly ABSENT. MS. KAY ROBERTS stated she just brought a new house in the Esperanza area, on the golf course claimed to be closed. She said DR Horton bought a lot of that land and made out like a bandit. She said the residents who bought property there stood to lose, including the City because the homeowner's property value would go down. She would like to know how DR Horton fit into this matter, because they own most of the land around there, and they stood to gain or lose as well. Vice Chairman Finerty stated it was her understanding that Mr. Kosmont and Mr. Case sold the rights to DR Horton to develop, so the City should find out how much money was transferred there. MRS. ROBERT said the residents were already paying homeowners fees for one lousy pool that finally just opened, which was $111/month. B. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY KNOWN AS 75-356 KELSEY CIRCLE NORTH (APN 634-241-051) - DESERT ROSE, PALM DESERT. Vice Chairman Finerty 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 available in the Housing Set -aside Fund. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. X. CONTINUED BUSINESS None ti� 'grnya fM !'C3. y[ :s PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 XI. OLD BUSINESS None XII. PUBLIC HEARINGS A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2009-2010 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL AND THE PALM DESERT HOUSING AUTHORITY). Mr. Wohlmuth stated that after several study sessions, the attached proposed budget was a balanced budget presented to Council/Authority for approval. Chairman/Mayor Spiegel declared the public hearing open and invited anyone wishing to address the City Council on the proposed Financial Plan to come forward at this time. With no public testimony offered, the public hearing was closed. Vice Chairman/Mayor Pro Tern Finerty stated that in this economy the Council would be approving a little bit better than a balanced budget and appreciated everyone's hard work in those study sessions. She thought it was important to adopt this budget because it will secure the stability of the City's fiscal position. Vice Chairman/Mayor Pro Tern Finerty moved to waive further reading and adopt: 1) City Council Resolution No. 09-54, adopting a City Program and Financial Plan for the Fiscal Year July 1, 2009, through June 30, 2010; 2) Waive further reading and adopt City Council Resolution No. 09-55, establishing the Appropriations Limit for FY 2009-2010; 3) Waive further reading and adopt Redevelopment Agency Resolution No. 560, adopting a Redevelopment Agency Program and Financial Plan for the Fiscal Year July 1, 2009, through June 30, 2010; 4) Waive further reading and adopt Housing Authority Resolution No. HA-40, adopting a Housing Authority Program and Financial Plan for the Fiscal Year July 1, 2009, through June 30, 2010; 5) Waive further reading and adopt City Council Resolution No. 09-56. setting the Salary Schedule, Salary Ranges, and Allocated Classifications for FY 2009-2010; 6) By Minute Motion, approve the Out -of -State Travel as listed in the accompanying staff report. Motion was seconded by Benson and carried by a 4-0 vote, with Kelly ABSENT. Member/Councilmember Benson noted City ManagerJohn Wohlmuth came to the City at a precarious time and did an admiral job of cutting down the budget and congratulated staff for working with him. She said the public needed to know that none of the necessary services were cut, and services will continue as usual. iL pp ..�+- r.•^�r PRELIMINARY MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 25, 2009 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 XIV. ADJOURNMENT With Agency Board concurrence, Chairman Spiegel adjourned the meeting at 5:28 p.m. ATTEST: ROBERTA. SPIEGEL, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY 11