HomeMy WebLinkAboutPrelim - RDA - 12/10/09PRELIMINARY MINUTES NLt
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, DECEMBER 10, 2009
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chairman Spiegel convened the meeting at 3:00 p.m.
II. ROLL CALL
Present:
Member Jean M. Benson
Member Jim Ferguson
Vice Chairman Cindy Finerty
Member Richard S. Kelly
Chairman Robert A. Spiegel
Also Present:
John M. Wohlmuth, City Manager/RDA Executive Director
David J. Erwin, City Attorney
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
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Grace L. Mendoza, Deputy City Clerk
PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
III. ADJOURN TO CLOSED SESSION
Reauest for Closed Session:
Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: 73-697 Santa Rosa Way, Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Russell Grance, City of Palm Desert/Palm
Desert Redevelopment Agency
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
2) Property: APN 628-130-015
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: Barracuda, LLC
Under Negotiation: x Price x Terms of Payment
3) Property: APN 628-130-008
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: David Nelson
Under Negotiation: x Price x Terms of Payment
4) Property: APN 628-120-005
Negotiating Parties:
Agency: John M. Wohlmuth/Lauri Aylaian/City of Palm Desert/
Palm Desert Redevelopment Agency
Property Owner: Roger Snellenberger
Under Negotiation: x Price x Terms of Payment
On a motion by Ferguson, second by Finerty, and 5-0 vote of the Agency Board,
Chairman Spiegel adjourned the meeting to Closed Session 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
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
Note: Upon returning to the regular City Council Meeting, Mayor Pro Tem/Vice Chairman
Finerty had been appointed Mayor/Chairman for the coming year, and
Councilman/Member Ferguson had been appointed to serve as Mayor Pro Tem/Vice
Chairman.
V. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
VI. CONSENT CALENDAR
A. MINUTES of the Regular Redevelopment Agency Meetings of November 12,
2009, and November 26, 2009.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant
Nos. 109RDA, 113RDA, 115RDA, 118RDA, 120RDA, 124RDA, 129RDA,
110-Housing, 116-Housing, 118-Housing, 121-Housing, 125-Housing,
130-Housing, 111 HA, 117HA, and 126HA.
Rec: Approve as presented.
C. CITIZEN'S ADVISORY COMMITTEE FOR PROJECT AREA #4 MINUTES
for the meeting of October 19, 2009.
Rec: Receive and file.
D. REQUEST FOR APPROVAL of the 2010 Master Consultants' List of
Qualified Professional Services Consultants (Joint Consideration with the
Palm Desert City Council and Housing Authority).
Rec: By Minute Motion: 1) Approve the 2010 Master Consultants' List
appended to the accompanying staff report; 2) authorize staff to
negotiate agreements and contract amendments with the qualified
consultants listed therein for up to $25,000, and authorize City
Manager/Executive Director to execute same; 3) approve the
proceedings for selection and award of contract as set forth in the
staff report authorized by Section 3.32.090 of the Palm Desert
Municipal Code.
Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the Agency Board,
the Consent Calendar was approved as presented.
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING
VII. CONSENT ITEMS HELD OVER
None
VIII. RESOLUTIONS
None
IX. NEW BUSINESS
�(1 , J
DECEMBER 10, 2009
A. REQUEST FOR AUTHORIZATION TO NEGOTIATE AND FINALIZE A
PROFESSIONAL SERVICES AGREEMENT FOR ARCHITECTURAL
SERVICES FOR THE CARLOS ORTEGA VILLAS
(CONTRACT NO. R29410) (JOINT CONSIDERATION WITH THE
HOUSING AUTHORITY).
Vice Chairman Ferguson moved to, by Minute Motion:1)Authorize staff to negotiate
and finalize a Professional Services Agreement with KTGY Group Inc., Irvine, California,
for architectural services for the Carlos Ortega Villas; 2) approve subject contract
substantially as to form; 3) authorize the Executive Director to approve and execute the
Professional Services Agreement in an amount not to exceed $785,000, plus reimbursable
expenses in an amount not to exceed $39,250. Funds are available in the Palm Desert
Housing Authority Capital Budget for the Carlos Ortega Villas, Account No 871-8691-466-
4001.
Member Spiegel asked why the Agency was contracting with a company in
Irvine, California.
Senior Management Analyst Catherine Walker responded staff conducted
a Request for Proposal (RFP) process and received 31 respondents, 4 of
whom were local. In the qualification's process they were given additional
points for locality; however, in the final ranking process, the top four firms
happen to be out of the area.
Motion was seconded by Spiegel and carried by a 5-0 vote.
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
B. REQUEST FOR AUTHORIZATION. TO NEGOTIATE A PROFESSIONAL
SERVICES AGREEMENT WITH S.M.S. ARCHITECTS, INC., FOR THE
DESERT WILLOW LAKEVIEW TERRACE EXPANSION (CONTRACT
NO. R29420).
Vice Chairman Ferguson moved to, by Minute Motion: 1) Authorize the Executive
Directorto negotiate an Agreement for Professional Services with S.M.S. Architects, Inc.,
Irvine, California, in an amount not to exceed $82,300, plus $4,100 for reimbursables for
the Desert Willow Lake View Terrace Expansion; 2) approve a 10% contingency in the
amount of $8,230; 3) authorize the Chairman to execute the Agreement; 4) appropriate
$94,630 from Unobligated Project Area No. 2 Fund to Account No. 851-4663-454-4001.
Motion was seconded by Kelly and carried by a 5-0 vote.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO PROPERTY
TRANSACTION FOR PROPERTY IMPROVEMENTS; ADOPT THE
MITIGATED NEGATIVE DECLARATION AND AUTHORIZE THE
EXECUTION OF THE NOTICE OF DETERMINATION; AND AUTHORIZE
ADVERTISEMENT FOR BIDS FOR INTERSECTION IMPROVEMENTS AT
PORTOLA AVENUE AND FRANK SINATRA DRIVE (PROJECT NO.
572-08) (JOINT CONSIDERATION WITH THE PALM DESERT CITY
COUNCIL).
Mayor Pro Tem/Vice Chairman Ferguson moved to, by Minute Motion: 1) Approve
Alternative 1 or the location of the retention basin, utilizing the approximately 4.3 acres on
the southwest corner of the 20-acre property owned by the Redevelopment Agency (RDA);
2)Authorize the Chairman to Execute the Grant Deeds for Parcels 620-400-003 and 694-
200-005; 3) Authorize the City Clerk to accept and file the Grant Deeds for Parcels 620-
400-015 and 620-400-016 pursuant to Resolution No. 77-48; 4) Authorize the
Mayor/Chairman to Execute the Grant of Easement for Parcels 620-400-003 and 620-400-
004; 5) Adopt the Mitigated Negative Declaration (MND) and authorize the Director of
Public Works to execute and file the Notice of Determination (NOD) with the County Clerk
and the Governor's Office of Planning and Research for the Intersection Improvements at
Portola Avenue and Frank Sinatra Drive (Project No. 572-08); 6) Authorize Advertisement
for bids for the Intersection Improvements at Portola Avenue and Frank Sinatra Drive
(Project No. 572-08). Funds are available for the construction of this project in the following
accounts: Measure A Account No. 213-4548-433-4001; Drainage Fund Accounts Nos. 232-
4548-433-4001 and 420-4548-433-4001; and Traffic Signal Fee Account No. 234-4548-
422-4001. No General Fund monies are required for construction. Landscape funds are
available in the following accounts: Capital Project Reserve Account Nos. 400-4311-433-
400 and 400-4363-433-4001. Motion was seconded by Spiegel.
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
Councilman/Member Spiegel asked if the actions represented an increase
or decrease in the price.
Mr. Greenwood responded the project was still close to the original budget.
Mayor/Chairman Finerty called for the vote, and the motion carried by a 4-0 vote,
with Kelly ABSENT.
B. REQUEST FOR AWARD OF CONTRACT NO. C29400 FOR DESIGN AND
CONSTRUCTION SUPPORT SERVICES FOR THE PALM DESERT
AQUATIC CENTER TO GOULD EVANS ASSOCIATES IN THE AMOUNT
OF $992,700 (JOINT CONSIDERATION WITH THE PALM DESERT CITY
COUNCIL).
Mayor Pro Tem/Vice Chairman Ferguson stated a swimming pool
subcommittee'was formed that included all relevant City staff and contractor.
Much like the Desert Willow subcommittee, this one will have oversight to
ensure it stayed within the budget and delivered the best quality/product
available for the various competitive teams and uses for the park site. He
was impressed with the services contemplated by this contract.
Mayor Pro Tem/Vice Chairman Ferguson moved to, by Minute Motion: 1) Authorize
the subject contract for design and construction support services for the Palm Desert
Aquatic Center to Gould Evans Associates, Phoenix, AZ, in the amount of $992,700; 2)
Authorize the Finance Director to set aside the amount of $99,270 as 10% contingency
(use of contingency requires additional action). Funds are available in the Park Fund
Account No. 233-4602-454-4001 ($359,586); and Project Area 2 Aquatic Facility Capital
Budget Account No. 851-4549-454-4001 ($633,114). Contingency funds are available in
Account No. 851-4549-454-4001. No General Fund money is being used for this
expenditure. Motion was seconded by Finerty.
Councilman/Member Spiegel stated there had been talk about possibly
furloughing or cutting additional employees because of the budget, if not this
year perhaps next year. Even though he knew this project would be funded
with redevelopment dollars, it was still looking at $20 million at a time when
the City had to cut back. The last time this item was discussed,
Councilmember Benson commented on the high cost of this project, and
after reflecting on it, he thought she had a good point.
Mayor Pro Tem/Vice Chairman Ferguson clarified the $20 million project was
for the pool that included all the water features, and this project was just for
the pool.
Mayor/Chairman Finerty called for the vote, and it carried by a 3-2 vote, with Benson
and Spiegel voting NO.
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
C. REQUEST FORAPPROVAL OF THE NEGOTIATING AGREEMENT WITH
LARKSPUR ASSOCIATES, LLC.
Mr. McCarthy stated this item is consideration of a negotiating agreement
which is basically intended to formalize the closeout of a Disposition and
Development Agreement (DDA) between the Redevelopment Agency and
Larkspur Associates. The agreement represents a compromise of
negotiations over the last few months, which gives the developer a non-
exclusive window in which to tender a new proposal, recently consistent with
the old project to the Agency for its consideration, while giving the Agency
the ability to entertain third -party proposals and also use the property at its
discretion. He noted a representative of the developer was present that
would like to make a comment.
Member Spiegel asked if they planned to give the Agency the interest.
Mr. McCarthy responded that underthe terms of this agreement, there would
be no current interest payments. There is approximately $118,000 of interest
in arrears that would be waived if they ultimately never develope the site or
receive a DDA. He noted the developer did advance a 10% down payment
on the property, which basically has been forfeited. They have also
advanced approximately $420,000+ of negotiation fees to the Agency for
consideration of the negotiations it did go into.
MR. WILLIAM DELEEUW, Project Manager for Larkspur Associates, LLC,
75656 Via Serena, Indian Wells, CA, offered to answer any questions.
Member Spiegel asked if there was any chance of this working out.
MR. DELEEUW responded he believed they were victims of the economy in
general, and they had about $1.8 million, including those items mentioned
by Mr. McCarthy, as wells as plans, specialist, etc., but they would like to go
on with the project. Right now there was zero financing available, and the
hotel market is very bad. He said they are ready to go on a fairly short,
because they still had their team together, with the exception of the
financing. The one positive thing that's happen is that the cost has gone
down significantly, almost 20%. He said when the economy starts moving
in the right direction and project starting, they will be ready to go.
Member Spiegel moved to, by Minute Motion: 1) Approve the Negotiating
Agreement with Larkspur Associates, LLC, Indian Wells, California; 2) authorize the
Chairman to execute the Agreement. Motion was seconded by Kelly and carried by a 5-0
vote.
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PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
XII. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF THE PROPOSED SALE OF TWO
PROPERTIES LOCATED AT 75-455 WILDFLOWER LANE AND 75-434
WILDFLOWER LANE PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33433(c).
Ms. Moore stated the Agency was successful in acquiring these two
properties in Desert Rose; they are both on Wildflower Lane. In orderforthe
Agency to resale these properties, the Agency must hold a public hearing
and accept public testimony. She offered to answer questions.
Chairman Finerty declared the public hearing open and invited public testimony on
this matter. With no public testimony offered, she declared the public hearing
closed.
Vice Chairman Ferguson moved to: 1) Waive further reading and adopt Resolution
No. 567 approving the sale of 75-455 Wildflower Lane, (APN 634-062-028) and 75434
Wildflower Lane (APN 634-061-008-0) Palm Desert, to qualified households of very low,
low or moderate income pursuant to the accompanying Purchase and Sale Agreements
substantially as to form; 2) By Minute Motion approve a silent second Trust Deed in an
amount necessary to secure an affordable housing cost for each of the qualified
households pursuant to Redevelopment Law. Funds are available in Account No. 870-
4699-464-4001; 3) By Minute Motion authorize the Executive Director to finalize and
execute the Purchase and Sales Agreements and any ancillary documents related to the
sale and loans to qualified households of very low, low or moderate income. Motion was
seconded by Spiegel and carried by a 5-0 vote.
XIII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
None
B. AGENCY COUNSEL
None
PRELIMINARY MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 10, 2009
C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
XIV. ADJOURNMENT
Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the Agency Board,
Chairman Finerty adjourned the meeting at 6:21 p.m.
ATTEST:
CINDY FINERTY, CHAIRMAN
RACHELLE D. KLASSEN, SECRETARY
PALM DESERT REDEVELOPMENT AGENCY
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