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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 2 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. 3 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. 10 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. 5 • :fR 5y+'nY :T4•a yJ 43 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. 0 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. 7 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 9