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HomeMy WebLinkAboutPrelim - RDA - 09/09/2010DRAFT PRELIMINARY MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, SEPTEMBER 9, 2010 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 1. CALL TO ORDER - 3:00 P.M. Assistant Secretary Grace L. Mendoza convened the meeting at 3:00 p.m. Due to the lack of a quorum, she immediately adjourned the meeting to 3:30 p.m. Chairman Finerty reconvened the meeting at 3:31 p.m. II. ROLL CALL Present: Member Jean M. Benson Vice Chairman Jim Ferguson arrived at 3:48 p.m. Member Robert A. Spiegel Chairman Cindy Finerty 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 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 DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 111. ADJOURN TO CLOSED SESSION Reauest for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - APN 622-260-082 Negotiating Parties: Agency: John M. Wohlmuth/Justin McCarthy/City of Palm Desert/ Palm Desert Redevelopment Agency Property Owner: Palm Desert Redevelopment Agency Other Parties: Riverside County Sheriff's Department Under Negotiation: x Price x Terms of Payment Upon a motion by Benson, second by Spiegel, and 3-0 vote of the Agency Board, with Ferguson ABSENT, Chairman Finerty adjourned the meeting to Closed Session at 3:32 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. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular Redevelopment Agency Meeting of August 26, 2010, Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 51 RDA, 53RDA, 57RDA, 60RDA, 62RDA, 54-Housing, 58-Housing, 60-Housing, 63-Housing, 55HA, and 59HA. Rec: Approve as presented. C. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO.4 Minutes for the Meetings of June 21, 2010, and July 19, 2010. Rec: Receive and file. 2 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 D. REQUEST FOR AUTHORIZATION to Publish a Notice Inviting Sealed Bids for the Deconstruction of Sagecrest Apartments at 73-775 Santa Rosa Way and Deconstruction of 73-805 Santa Rosa Way (Contract No. R30200). Rec: By Minute Motion, authorize the City Clerk to publish a Notice Inviting Sealed Bids for the subject project. E. REQUEST FOR APPROVAL of Amendment No. 3 to Contract No. R29420 — Professional Architectural Services Associated with the Desert Willow Lakeview Terrace Expansion Project. Removed for separate consideration under Section VII, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. Member Spiegel requested item E be removed for separate action under Section VII, Consent Items Held Over. Upon a motion by Spiegel, second by Ferguson, and 4-0 vote of the Agency Board, the remainder of the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER E. REQUEST FOR APPROVAL of Amendment No. 3 to Contract No. R29420 — Professional Architectural Services Associated with the Desert Willow Lakeview Terrace Expansion Project. Member Spiegel questioned why the Agency had to go though so many amendments, because this was the third one. On May 13, the subject company was approved an additional $7,850, and it was now asking for an additional $6,633. Redevelopment Manager Martin Alvarez stated this would be the last amendment, which would allow staff to close out the project with additional construction administration services. He said the project was delayed when the Agency had to replace the contractor early on, which incurred additional services to pay on the back end. Member Spiegel moved to, by Minute Motion: 1) Approve Amendment No. 3 in an amount not to exceed $6,633.78 to the subject contract with Smart Michael Siminoff Architects, Inc. (SMS), Irvine, California, for additional construction administration and design services; 2) authorize the Chairman to execute Amendment No. 3 — funds are available in RDA Post Construction Costs — Account No. 851-4663-454-4001. Member Benson stated since this item was related to the Lakeview Terrace Expansion and before the sign went up, she proposed discussing the t' PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 renaming of the terrace area to the "Kelly Terrace." She wondered if her request needed to be added to the agenda. Mr. Erwin stated if the Council wished to discuss it at this meeting, it could be added. Member Spiegel suggested placing it on the next meeting agenda along with the naming of the bridge. Member Benson agreed. Vice Chairman Ferguson seconded the motion and it carried by a 4-0 vote. VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT TO ASR CONSTRUCTORS, INC., IN THE AMOUNT OF $7,769,000 FOR CONSTRUCTION OF THE PALM DESERT AQUATIC CENTER (CONTRACT NO. C29400A) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). MR. JIM BARGER stated he was the number three bidder, and he filed a protest based on the specifications on Addendum No. 2, which required two things. First it required the general contractor possess an "A License," and secondly, it required that at least 50% of the work be done by the general contractor. He said he was at a disadvantage because he was unable to get the bidding documents for the two lowest bidders, but he knew the number two bidder did not have an "A License." He said just two hours ago, he was able to obtain ASR Constructors, Inc. (ASR) bid documents, which he's been requesting since the first day it bid. If the Council reviewed the number of subcontractors listed, the work subbed out was well in excess of 50% and somewhere in the $4.4 million; he said 50% of their contract would have been $3.8 million. Additionally, ASR did not list their plumbing contractor on the list of subcontractors, and because ASR was not a licensed C36 Contractor, they couldn't be doing that work. They also did not list the sprinkler contractor, which is also required in the specifications. He said the M PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 way this thing was set up was unusual and actually a disadvantage for the City. He said he wasn't trying to get additional monies out of the City and thanked the Council for the opportunity to bid this project, but the difference between his bid and ASR was $1 million, and he didn't expect the City to shell out $1 million because someone made a mistake. Because of the way the specifications were written, the only company that could have qualified for this and could have done this project, would have been a pool contractor that had an "A License," because the majority of the aquatic project was pool work. By reviewing the listed subcontractors, and adding them up beginning with the pool contractors, which was $2 million, then adding the plumbing and electricians, the work that the general contractor couldn't do under their license, well exceeded the 50% requirement. His last concern, which may sound like sour grapes, was that Water Works, which was one of the contractors listed, was also involved with the company -named Aquarius that walked away from sixty pool projects in the Northern California area and didn't finish those jobs. The Contractor's Board sought to go after those guys, and two of those guys who are associated with this company were removed from the license and told they could remain with the company but not be involved with the licensing of the company. He said this company was working in Northern California, and they are spread pretty thin. He requested ASR be required to come up with a bond as a full contract in order to do this project, and since this was an aquatic center, the most important contract to the City would be the pool contractor. He came in as a general contractor and was prepared to bond the entire project as a pool contractor and general engineering contractor. Mr. Greenwood stated ASR was the apparent low bidder who submitted with their bid a breakdown of their subcontractors, which showed that ASR would be doing 53% of the work. Therefore, the company did qualify and met the requirements. Mayor/Chairman Finerty asked staff if they were aware of any knowledge of the alleged record in Northern California. Mr. Greenwood answered no, stating it may not be pertinent because this was a low bid environment, where the bid ruled. Further responding, he said ASR was the contractor for the new Police Department building on Gerald Ford and was told they did a good job. Having just taken a tour of the building yesterday, he could verify that the facility came out very nicely. He said ASR was also the contractor for the Fire Station concrete driveway repair and staff's direct experience with them was outstanding. Councilman/Member Spiegel stated he and Mayor Pro Tem/Vice Chairman Ferguson both had concerns about the concession and the ability to provide dual function for those inside and outside the facility where nice tables can be set up for City employees and those working in the Parkview Buildings. 5 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 He would like staff to look into that aspect in a strong way, because concession sales could help the bottom line. Mr. Chen stated staff was working with the consultant to look at that issue, and that during the design phase, staff will make sure access is blocked off in the concession area. Mr. Wohlmuth stated the facility is designed to serve both in the Aquatic Center fenced area and outside facing toward the ball fields. However, the operation of the entire facility, the Request for Proposal for the operation hasn't been determined. He said obviously during the summer months when the pool was open substantially throughout the day, it would be an easy process to have the operators open to serve, but he wasn't sure the snack bar would be open year round. He said staff will work on this issue with the operator of the facility. Mayor Pro Tem/Vice Chairman Ferguson stated he spoke with what could be a major tenant moving into the Brothers Building who expressed a strong concern in the decision to move there as to whether there would be food service available, and he mentioned specifically the Council's conversation. He said the Council may want to revisit or expand food service from that facility for the College, Civic Center, Sheriff's Station, and Brothers Building, so that people have a place to eat who aren't swimmers and possibly think about expanding hours of operation. The purpose is not to make money on concession sales, but to be able to enhance the rent base in some of the City's leased facilities and provide a convenience for employees, which may be worth looking into. Councilmember/Member Benson asked if that would be a concession that would be contracted out to provide the service. Mayor Pro Tem/Vice Chairman Ferguson stated the Council hadn't made a final decision, but he was hoping that when the City Council made the reshuffling of committees and commissions they served on, that there was an opening on the Aquatic Subcommittee, which the late Councilmember Richard Kelly served on. Mayor/Chairman Finerty asked when was construction anticipated to start if the contract was awarded this evening. Mr. Chen answered it would take two to three weeks to execute the contract, and once that was complete, the City can issue the Notice to Proceed. Further responding, he confirmed that within a month the project could be under construction. 0 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 Councilman/Member Spiegel moved to, by Minute Motion: 1) Award the subject contract to ASR Constructors, Inc., Riverside, California, for the base bid amount of $7,663,000; 2) select Alternates 2 through 5 in the additional amount of $106,000, for a total contract amount of $7,769,000; 3) authorize the Director of Finance to set aside a 10% contingency for the project in the amount of $776,900; 4) reject the protest raised by Pacific Custom Pools, Inc., Pasadena, California; 5) authorize the Mayor to execute said contract — funds are available in Account No. 233-4549-454-4001 - Park and Recreation Facilities Fund; and Account No. 851-4549-454-4001 - Project Area No. 2 Aquatic Facility Capital Budget — no General Fund money is being used for this expenditure. Motion was seconded by Ferguson and carried by a 4-0 vote. Mr. Greenwood acknowledged that Mr. Chen exerted a great deal of effort into getting the project to this stage and deserved everyone's appreciation. B. REQUEST FOR AUTHORIZATION TO AWARD CONTRACT TO THE LOWEST RESPONSIVE BIDDER FOR THE PALM DESERT VISITOR CENTER TENANT IMPROVEMENTS AT 73-470 EL PASEO, SUITE NO. 14, PALM DESERT (CONTRACT NO. R30070) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Councilman/Member Spiegel noted Orr Builders came in $18 dollars under the next lowest bidder, but the company was local. Redevelopment Manager Martin Alvarez stated an updated staff report was provided to the Council, which indicated three bids were received on September 7, 2010. The apparent low bidderwas Orr Builders in the amount of $288,600.15. Given the fact that the bids were higher than staff anticipated, two options were provided to the Council for consideration. Option No. 1 rejects all bids and allows staff to work with the architect to value engineer the project and come up with savings in some of the design features. If that were the case, the bids would be returned to the contractors for new bids, and staff will then provide a recommendation to the Council on October 14, 2010. Mayor Pro Tem/Vice Chairman Ferguson questioned how staff could come in $2.4 million under on an Aquatic Center Project and be over by $88,000 on a simple storefront tenant improvement project that was budgeted for $200,000. He asked if the tenant improvements were that complex. Mr. Alvarez responded staff was trying to provide an aesthetic that matched the current Visitor Center, and being that the new location was on El Paseo, staff was trying to keep with the standard of the area. He said there was room for improvement, which staff recognized. He said staff can certainly work with the architect to skim back a little. 7 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 Councilman/Member Spiegel noted there was a time line to begin construction mid September and complete construction mid November, which was important because that's when the shopping season started. Mayor/Chairman Finerty stated it would include spending an extra $88,000. Mayor Pro Tem/Vice Chairman Ferguson inquired about the tenant improvements. Mr. Alvarez said an original staff report was provided to the Council, which had a floor plan with more details on what staff was trying to achieve. He reiterated that Option No. 1 was to reject all bids and allow staff to work with the architect to value engineer the project and return on October 14, 2010, with another award of contract. However, Option No. 1 would delay the project with commencement of construction until November 1 and complete by the end of the year. Option No. 2 would be to continue forward with the current bid at $288,600.15, which would allow for construction to begin mid September and complete the project in November. Mayor/Chairman Finerty asked how many restrooms were in the plans forthe new Visitor Center, because she noticed part of the tenant improvements included an addition of a unisex public restroom. Mr. Alvarez responded there was an existing restroom in the current tenant improvements, and the addition of the restroom was for public use only with the secondary restroom for employees. Further responding, he said staff did have a cost breakdown for all the bids, which he had a copy with him that could be passed around for the Council to view. Mr. McCarthy added that as part of the lease, the landlord had to do certain improvements in terms of demising the space, and he wasn't confident they would be able to deliver that space by mid September anyway, which may argue the point for the option of doing the value engineering and the redesign. Mayor/Chairman Finerty stated she personally would prefer to see all bids rejected and have it go out to bid. However, in the next staff report, she would like staff to provide the cost breakdown next to each component. Mayor Pro Tem/Vice Chairman Ferguson agreed with Councilman/Member Spiegel that the bids were not highballed, and it may get the same results. He just went to the opening of the Apple Store yesterday, next to Gucci, Juicy Couture, and Kate Spade, where there are tons of people. He didn't think the City would get a cheaper bid, and he would hate to miss part of the season hoping to shave dollars off a bid that may be as low as it's gonna' get. He was curious to hear what Visitor Center Manager Donna Gomez and Mr. Alvarez thought about moving forward. He knew Ms. Gomez didn't weigh PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 in on policy issues, but certain she had a feeling on whether or not things could get done irrespectively of price and allow Council to make the tough call on the price. Mr. Alvarez pointed that with Option No. 2, if the contract was awarded to Orr Builders, staff still had an opportunity to work with the contractor to value engineer certain portions of the project and still provide cost -savings as it went through the construction, which will allow staff to proceed and not delay the project. Mayor Pro TemNice Chairman Ferguson asked what that meant in English. Mr. Alvarez explained the Council could award the contract today, and staff will make minor design changes to still save money on the project. Councilmember/Member Benson stated sometimes the City can be a penny wise or penny foolish, noting November was a terrific visitor month here in the desert. She said there were so many family gatherings that brought people to Palm Desert that the City could be cutting off its nose despite its face. She was in favor of moving forward as long as staff was willing to work with Orr Builders to get the cost down. Visitor Center Manager Donna Gomez agreed, stating she would love to be open by November, especially for the Thanksgiving Holiday. She said by looking at some basic numbers, the City would lose some revenue if the Center wasn't open by November, especially at that location. Last year in November the Visitor Center made about $12,000 in revenue and $15,000 in December. Mayor/Chairman Finerty asked if staff was confident the tenant improvements would be complete in time to accommodate a November 15 opening. Ms. Gomez responded that if the proposed contract was awarded today, she believed the deadline could be met. Further responding, she was also confident in working with Orr Builders to reduce the cost. Councilman/Member Spiegel moved to, by Minute Motion: 1) Authorize the Chairman to execute the subject contract with Orr Builders, Palm Desert, California, in the amount not to exceed $288,600.15 for Tenant Improvement for the new Visitor Center to be located at 73-470 El Paseo, Suite No. 14; 2) authorize staff to work with the contractor to value engineer the project in order to reduce costs; 3) authorize the Director of Finance to set aside a 10% contingency for the project; 4) appropriate funds from the Agency's Economic Development Rental Services/Facilities Fees Unobligated Funds to Account No. 850-4430-422-3421 for the project. Motion was seconded by Ferguson and carried by a 4-0 vote. 9 PRELIMINARY MINUTES DRAFT PALM DESERT REDEVELOPMENT AGENCY MEETING SEPTEMBER 9, 2010 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 XIV. ORAL COMMUNICATIONS - C None XV. ADJOURNMENT Upon a motion by Spiegel, second by Benson, and 4-0 vote of the Agency Board, Chairman Finerty adjourned the meeting at 5:37 p.m. ATTEST: CINDY FINERTY, CHAIRMAN GRACE L. MENDOZA, ASSISTANT SECRETARY PALM DESERT REDEVELOPMENT AGENCY 10