2003 05 20 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY
.... MINUTES
'- MAY '20, 2003-' ·
A regular meeting of the La Quinta Redevelopment Agency was called to order by
Chairperson Henderson.
PRESENT: Board Members Adolph, Osborne, Perkins, Sniff, Chairperson Henderson
ABSENT: None
PUBLIC COMMENT - None
CLOSED SESSION
1. Conference with Agency's real property negotiator, Mark Weiss, pursuant to
Government Code Section 54956.8 concerning potential terms and conditions
of acquisition and/or disposition of real property located southwest of the Miles
Avenue and Washington Street intersection and north of the Whitewater
Channel (APNs 604-040-012/013 and 604-040-022/023). Property
Owner/Negotiator: Richard Oliphant, California Intelligent Communities, LLC.
The Agency recessed to Closed Session to and until the hour of 7:00 pm.
7:00 P.M.
The Agency meeting reconvened with no decisions being made in Closed Session
which require reporting pursuant to Section 54957.1 of the Government Code (Brown
Act).
JOINT PUBLIC HEARING WITH THE LA QUINTA CITY COUNCIL
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING BETWEEN THE LA QUINTA REDEVELOPMENT
AGENCY AND THE LA QUINTA CITY COUNCIL TO APPROVE AN AGREEMENT
TO SELL REAL PROPERTY LOCATED AT 53-780 AVENIDA VALLEJO BY AND
BETWEEN JAMES CHAPA AND ROSARIO MACKAY AND THE LA QUINTA
REDEVELOPMENT AGENCY.
Community Development Director Herman presented the staff report.
Redevelopment Agency Minutes 2 May 20, 2003
In response to Board Member Osborne, Mr. Herman confirmed the house must
be the primary residence for the participants for the 45-year period of the
covenants unless the property is sold or with the concurrence of the Agency.
The Chairperson declared the PUBLIC HEARING OPEN. There being no requests
to speak, the Chairperson declared the PUBLIC HEARING CLOSED.
MOTION - It was moved by Board Members Adolph/Sniff to approve the sale of
53-780 Avenida Vallejo to maintain an affordable housing unit in Project Area
No. 1 for a purchase price of $130,000 and to authorize the Executive Director
to execute the necessary documents to complete the property sale. Motion
carried unanimously.
The Agency recessed to the City Council meeting.
The Agency reconvened.
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
APPROVAL OF MINUTES
MOTION -It was moved by Board Members Sniff/Adolph to approve the Minutes of
May 6, 2003, as submitted. Motion carried unanimously.
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED MAY 20, 2003.
2. APPROVAL OF TREASURER'S REPORT OF MARCH 31, 2003.
3. APPROVAL OF REVENUE & EXPENDITURES REPORT DATED MARCH 31,
2003.
4. APPROVAL OF BID FOR ASSESSMENT/SEWER HOOK-UP FEE SUBSIDY
PROGRAM, PROJECT 2003-03, TRI STAR CONSTRUCTION.
Redevelopment Agency Minutes 3 May 20, 2003
5. APPROVAL OF A REALLOCATION OF BUDGETED HOUSING FUNDS FROM
......... REDEVELOPMENT PROJECT AREA NO. 2 TO REDEVELOPMENT PROJECT
- ~* AREA NO. I FOR THE LA QUINTA HOUSING PROGRAM SECOND TRUST DEED
LOAN PROGRAM.
MOTION - It was moved by Board Members Adolph/Sniff to approve the
Consent Calendar as recommended. Motion carried unanimously.
BUSINESS SESSION - None
STUDY SESSION
1. DISCUSSION OF SILVERROCK IMPLEMENTATION ACTIVITIES.
Assistant Executive Director Weiss presented the staff report.
Roy Stephenson, 35-617 Rosemont, Palm Desert, representing Berryman &
Henigar, stated they would like to serve as the development coordinator for the
project.
The Agency then proceeded to discuss the implementation issues.
Or.qanizational Structure
Board Member Osborne stated he supports retaining the current organizational
structure.
Board Member Sniff noted there has been some discussion about including
qualified and interested citizens in this process. He suggested giving serious
consideration to forming a citizen's committee of 10 members, with each
Agency Member submitting two names. He feels it would be a significant
advantage and help with getting the community to buy-into the project. He
stated he would view the committee as an advisory group.
Board Member Adolph stated several citizens have voiced interest in providing
input on the project, and a citizens committee may be a good idea. He feels it's
important to expedite the process, and is not sure how often the committee
should meet. Board Member Sniff suggested twice a month like the Planning
Commission.
-- Board Member Perkins disagreed with forming a citizens committee, noting the
Investment Advisory Board was just reduced to five members. He doesn't feel
it's necessary to engage staff in additional committee meetings, and has faith
Redevelopment Agency Minutes 4 May 20, 2003
that the Agency and staff can do what has to be done. He pointed out the
Agency Members have been elected to represent the people.
Board Member Adolph stated he has received calls from citizens who feel there
should be a citizen's committee.
Board Member Perkins stated he feels residents can communicate their ideas to
the Agency without direct involvement with the process.
Chairperson Henderson noted each meeting is open for public involvement, and
stated she isn't sure what participation a citizens group would have with
disciplines that are so technical in nature.
Board Member Adolph stated his idea was to have citizens on the committee
who are experts and can help with technical areas, and maybe see things on the
conceptual plan that were missed.
Board Member Osborne questioned there being a need for a committee that
wouldn't have any authority.
Board Member Adolph noted the committee could confirm what is being done is
correct. He stated experts in the field of golf have offered their expertise, and
he would be more comfortable having their input.
Chairperson Henderson stated the experts she has talked to are not interested in
serving on a committee.
Andy Vossler, of Landmark Golf Company, stated he feels it would be difficult
to design and construct the project with a committee. He noted this will be a
team effort, and suggested the City hire the best team possible.
Chairperson Henderson noted identification of who will accomplish the individual
disciplines will be done through an RFP process.
Mr. Vossler noted there are alternatives to the RFP process, but if an RFP is
done, he feels it would be important to get three of the disciplines on board as
soon as possible, He stated they can divide the list and determine who is
needed next. He questioned why the temporary clubhouse is a high-priority
item since it will take 10 months to get grass planted. He feels a committee for
public relations purposes is okay but recommended not getting them too
involved because some of the decisions will need to be made quickly and a
committee decision is time consuming. He believes the development
coordinator and construction manager should be one entity.
Redevelopment Agency Minutes 5 May 20, 2003
In response to Chairperson Henderson, Mr. Weiss explained staff has not taken
-' ~ the approach of the development coordinator and construction manager being
- the same entity because public" tax dollars being ~involved, and there being a
need for a series of "checks and balances." He stated the initial thought was to
hire a development coordinator who is familiar with the golf industry and the
public process, and who would be truly objective, having no future
compensated role in the project. He stated there are construction managers
who did not respond to the development coordinator RFP because of the
restriction for further compensated roles in the project. He noted some of the
development coordinator tasks have been done by staff, and at some point if
the development coordinator position has not been filled, there may be some
thought of preparing an RFP for a construction management firm that includes
the skills needed for the development coordinator position.
In response to Chairperson Henderson, Mr. Weiss confirmed any contracts over
$25,000 are required to go through the consultant selection procedure. An
exception is allowed when the Agency has experience with another firm that
has the expertise the Agency is seeking.
City Manager Genovese stated, in this particular situation, the development
coordinator could turn into the construction manager.
Mr. Vossler noted when one member of the team is not doing his/her job, it
affects the other team members, and a dysfunctional situation will be apparent.
He believes the process and limitations the Agency has will make it difficult to
build a five-star golf course/hotel resort. He feels there may be a need to
reconsider what the project is going to be, unless the Agency is able to
assemble capable experts for a team and allow them latitude in building the
project.
Board Member Adolph asked how the Agency is supposed to know it is getting
the right team.
Mr. Vossler stated the City should start with one of the disciplines on the list,
such as a golf architect firm like the Palmer Group, and they will know how to
select a good team.
Board Member Adolph asked Mr. Vossler if he feels the first step should be to
hire a golf architect, and have him help find the development team.
Mr. Vossler stated he feels the development coordinator RFP is so restricted it
will be difficult for that position to do what it needs to do. He commented on
the need for a lead player, such as a golf architect, project director, or golf
director.
Redevelopment Agency Minutes 6 May 20, 2003
In response to Chairperson Henderson, Mr. Vossler stated he feels some golf
architects are team builders and some are not, and noted what one golf
architect firm will tell' the City it needs for its team' will be different from what
another golf architect firm will say it needs.
Board Member Perkins commented on situations he has been involved with
where someone had to be responsible for putting a team together for everything
to work right. He feels the project manager should be responsible for getting
the team members together to avoid delays in the project. He voiced concern
about the Agency trying to micro-manage the project, and stated he doesn't
believe that will work.
Chairperson Henderson noted about five of these disciplines should already be
working, and that the development coordinator was supposed to be on board to
be in charge.
Mr. Genovese stated staff will monitor the project as it goes forward but noted
the development coordinator was to be the first part of building a team to assist
staff in getting everything organized. He commented on the need for expertise
to do the project much like when City Hall was built, and stated although this
project is larger, the technique and system to put it together is the same.
Board Member Sniff stated he doesn't see a problem having a citizen's
committee that is informed about the project but understands the need to bring
a singular dimension into the project, with a project manager at the top of the
organizational chart. He believes that will provide structure and firm direction
and make the project happen with some level of dispatch and a significant
amount of expertise. He questioned there being any direct comparison between
this project and the construction of City Hall. He believes the City needs
someone who knows how to plan and build a golf course, and factor in hotels
and other amenities. The City should then charge them with that responsibility
and monitor them.
Chairperson Henderson noted that is what GMA International does.
Board Member Sniff stated he feels there are many groups that can build golf
courses, including Landmark Golf Company.
Mr. Stephenson pointed out the City doesn't have the same latitude as the
private sector unless the project is done as a design/build concept. Otherwise,
the project has to be treated like any other public bid project. He stated his
proposal for the development coordinator position outlines many of the tasks
that will need to be done for this project, and added he built a 250-acre public
golf course in a 1,000-acre master plan development. He also commented on
the need to have someone who understands the public bidding process.
Redevelopment Agency Minutes 7 May 20, 2003
Chairperson Henderson suggested accommodating the desire for a committee by
each Agency Member appointing two people. She further recommended the
committee 'meet once a month,~and that the Agency meet with them to keep
them apprised of the status of the project.
Board Member Sniff questioned anyone wanting to participate on the committee
if they don't have a relevant role.
Chairperson Henderson noted the update may include a decision.
Board Member Sniff stated he believes the project should have an overall project
director with power and significant ability to move the project forward.
Chairperson Henderson stated she is satisfied with the current organizational
structure but would give consideration to a commission meeting once or twice
monthly for updates on the project, and opportunity to provide input.
Board Member Osborne concurred.
Board Member Perkins questioned the need for tying staff up in more meetings.
__. Board Member Adolph stated he feels community involvement precludes
negative comments, and he commented on the need to move forward with the
development coordinator position. He concurs with retaining the current
organizational structure, and considering an advisory committee.
Mr. Genovese stated the concept of an advisory committee can be brought back
at a future meeting.
Contract Organization
Chairperson Henderson stated she supports streamlining project management by
grouping contracts under selected master consultants.
The Agency concurred.
Plan Consistency
In response to Chairperson Henderson, Mr. Weiss stated many of the golf
architects assume the City will have a planner on board to help configure the
golf course into the overall plan. Some of the tasks considered for GMA would
be refinement of the conceptual grading and 'drainage plan, as well as
coordinating with the golf architect, clubhouse architect, and water engineer to
ensure everything is considered from a land-use standpoint. GMA could also
assist in maintaining the web site, refining the logo, color palette, and
Redevelopment Agency Minutes 8 May 20, 2003
architectural style of the project. He noted GMA has a successful history in
resort development and planning and a good understanding of this project.
They also have familiarity' with 'key players in the golf industry, and can provide
assistance to supplement the development coordinator. Staff feels it is an
opportunity to keep a qualified planning firm on board in whatever capacity
deemed appropriate by the Agency.
In response to Board Member Adolph, Mr. Weiss stated the golf architects were
asked what discipline within the process would they feel comfortable including
within their realm and which ones would they not include. Many responded
they assumed they would be working with a land-use planner, and that GMA
was part of the package. He stated staff informed the golf architects that
GMA's contract was coming to a close and that further involvement had not
been determined. He stated a majority of the golf architects are comfortable
working in an environment in which they know the golf course is only one
element. He added a land-use planner ensures integration of all components
and makes sure one is not dominant over another. Staff feels GMA's familiarity
with the project is best suited in a timely way to bring the project forward, and
would encourage communication with any high-executive contacts GMA may
have but that may not be a part of a formal contract with them. He stated the
discussions with GMA have been very preliminary and staff has indicated any
contract with them should have a tangible product.
Consultant Frank Spevacek commented regarding the restrictions on using tax-
exempt financing, and advised such financing limits the profit a master
developer of the entire project or a master developer of specific hotel sites can
generate from their role in the project. He advised a staff report on this issue is
proposed to come back at the June 3rd meeting for further discussion. He
stated there are ways to structure this by issuing the next bonds on a taxable
basis and using it to release the hotel, retail, casitas, and special use areas from
the tax-exempt restrictions. However, since the majority use of the golf
courses will be qualified under the tax-exempt basis, there are limits on the
contracts in terms of timeframes and extreme limits on the amount of profit an
entity can gain from that type of activity.
Board Member Perkins spoke in support of negotiating a continued role with
GMA.
Board Members Adolph and Osborne concurred.
Board Member Sniff stated he would prefer seeking another firm for these
services.
Chairperson Henderson asked if a negotiated contract would come back to the
Agency for approval.
Redevelopment Agency Minutes 9 May 20, 2003
Mr. Weiss responded, "Yes," and added it would be an extension of their
-- existing contract and would clearly explain their continued role.
Chairperson Henderson stated she would like to see their marketing participation
limited to the web site because she feels a much broader opportunity exists for
marketing the project.
Mr. Weiss advised staff will start negotiations with GMA and come back to the
Agency with a formal contract and specific tasks.
Development Coordinator
Board Member Perkins recommended rejecting all proposals and reformulating
an RFP with fewer restrictions on contract term and future project involvement.
Board Member Osborne stated he supports negotiating with the third-ranked
firm of Berryman & Henigar if staff is comfortable with that.
Board Member Sniff stated he supports rejecting all proposals and going out
with a new RFP. He feels fewer restrictions could be a significant advantage.
In response to Board Member Adolph, Mr. Weiss stated Berryman & Henigar
were ranked third out of nine proposals and five interviews. Board Member
Adolph then spoke in support of negotiating a contract with Berryman & Henigar
and having the firm come back before the Agency for an interview.
Chairperson Henderson noted the Agency conducted a semi-interview with
Tom Frost but that was not the procedure that was ordered.
Board Member Adolph noted the Agency is not privy to the discussions staff
has had with the firms.
Chairperson Henderson pointed out the procedure used to hire someone for this
type of position has never provided the Agency to be privy to those discussions.
Board Member Adolph stated he would like to know if the firm is capable of
handling a project this size, and asked how long a new RFP process would take.
Mr. Weiss stated it will take approximately three months to revise the RFP, get
the Agency's approval on the revisions, advertise the RFP, conduct interviews,
negotiate a contract, and come back to the Agency with a recommendation.
- -- Chairperson Henderson noted if the third-ranked firm is not approved, a new
RFP process will have to be initiated.
Redevelopment Agency Minutes 10 May 20, 2003
Board Member Perkins suggested interviewing the remaining three firms.
Mr. Genovese advised the Agency' has that discretion but it doesn't follow the
resolution.
Chairperson Henderson and Board Members Adolph and Osborne stated they
support negotiating with Berryman & Henigar.
Project Name and Logo
Board Member Osborne spoke in support of SilverRock as one word.
Board Member Sniff stated he opposed the name entirely, and questions
capitalizing the "R" in rock.
Board Member Adolph stated he doesn't really care for the name but
understands the decision has been made and supports SilverRock as one word.
Board Member Perkins stated he prefers Silver Rock as two words.
Chairperson Henderson stated she supports SilverRock as one word, and added
she has heard a lot of support for the name, SilverRock Ranch.
Board Member Perkins stated he would support SilverRock as one word.
After a brief discussion, the Agency concurred to delay selection of a logo until
a marketing firm is on board.
Mr. Vossler thanked the Agency for allowing him to participate. He also
suggested asking each consultant, architect, etc. that are considered for this
project what top 1 O0 golf courses they have been involved with, and what five-
star resorts they have been involved with.
CHAIR AND BOARD MEMBERS' ITEMS - None
Redevelopment Agency Minutes 11 May 20, 2003
ADJOURNMENT
~ ,,
There being no further business, it was moved by Board Members Osborne/Sniff to
adjourn. Motion carried unanimously.
Respectfully submitted,
JUNE S. GREEK, Agency Secretary
La Quinta Redevelopment Agency