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2003 07 22 RDA Minutes LA QUINTA REDEVELOPMENT AGENCY MINUTES JULY 22, 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 legal counsel pursuant to Government Code Section 54945.9(c) regarding initiation of litigation - (one matter). The Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Board Member Sniff requested that Item No. 4 of the Consent Calendar be moved to Item No. 4 of the Business Session. APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Adolph to approve the Redevelopment Agency Minutes of July 5, 2003 as submitted. Motion carried unanimously. Redevelopment Agency Minutes 2 July 22, 2003 CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED JULY 15, 2003 2. TRANSMITTAL OF TREASURER'S REPORT DATED MAY 31, 2003. 3. TRANSMITTAL OF REVENUE & EXPENDITURE REPORT DATED MAY 31, 2003, AND THE INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING JUNE 30, 2003. 4. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH PALMER COURSE DESIGN COMPANY FOR GOLF COURSE ARCHITECTURAL DESIGN SERVICES. MOTION - It was moved by Board Members Sniff/Adolph to approve the Consent Calendar as amended with the removal of Item 4 from the Consent Calendar and placed as Item 4 of the Business Session. Motion carried unanimously. BUSINESS SESSION 1. CONSIDERATION OF: 1) A RESOLUTION APPROVING THE FISCAL YEAR 2003/2004 LA QUINTA REDEVELOPMENT AGENCY BUDGET; AND 2) A RESOLUTION DETERMINING THE PLANNING AND ADMINISTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2003/2004. Finance Director John Falconer presented the staff report. There were no changes as submitted and on file in the City Clerk's Office. RESOLUTION NO. RA 2003-12 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A BUDGET FOR FISCAL YEAR 200312004. It was moved by Board Members Sniff/Adolph to adopt Resolution No. RA 2003-12 as submitted. Motion carried unanimously. RESOLUTION NO. RA 2003-13 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA, DETERMINING THAT THE PLANNING AND Redevelopment Agency Minutes 3 July 22, 2003 ADMINSTRATION EXPENSES TO BE FUNDED IN FISCAL YEAR 2003/2004 BY THE LOW AND MODERATE-INCOME HOUSING FUND ARE NECESSARY FOR THE PRODUCTION, IMPROVEMENT, AND/OR PRESERVATION OF AFFORDABLE HOUSING FOR LOW AND MODERATE-INCOME HOUSEHOLDS. It was moved by Board Members Osborne/Sniff to adopt Resolution No. RA 2003-13 as submitted. Motion carried unanimously. 2. CONSIDERATION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445(a) AND AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE AVENIDA LA FONDA STREET ENHANCEMENT PROJECT. There were no changes to the staff report as submitted and on file in the Office of the City Clerk. After a brief discussion, the Board decided not to take action on this matter until the City Council has resolved the award of bid for the improvements to Avenida La Fonda. By unanimous consensus. 3. CONSIDERATION OF AN AMENDMENT TO THE LA QUINTA REDEVELOPMENT PROJECT AREA NO. 2 REDEVELOPMENT PLAN TO INCREASE THE TAX INCREMENT LIMIT AND AN APPROPRIATION OF UP TO $50,000. Redevelopment Agency Consultant Frank Spevacek presented the staff report as submitted and on file in the Office of the City Clerk. MOTION - It was moved by Board Members Sniff/Adolph to direct staff to proceed with the Project Area No. 2 Redevelopment Plan amendment to increase the tax increment limit and authorize an appropriation of up to $50,000. Motion carried unanimously. 4. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH PALMER COURSE DESIGN COMPANY FOR GOLF COURSE ARCHITECTURAL DESIGN SERVICES. Redevelopment Agency Assistant Executive Director Mark Weiss presented the staff report and introduced the Project Coordinator Roy Stevenson who was also available for any questions the agency might Redevelopment Agency Minutes 4 July 22, 2003 have. Assistant Executive Director Weiss advised that the original contract, which the agency authorized staff to enter into, was for an amount not to exceed $1 million, plus an allowance of $50,000 for reimbursable expenses. Subsequent to the contract negotiations the contract amount was reduced to $850,000. On further reflection, staff felt it would be prudent to add in additional services to the originally proposed scope of services to include the irrigation plan, landscape architecture, golf cart path routing, Agronomy and lakes design. The addition of the listed services resulted in no increase to the Palmer Course Design Company's (PCDC) originally proposed fee of $1 million proposal. Board Member Adolph commented on and questioned a number of provisions of the contract and the questions and responses by Assistant Executive Director Weiss, Mr. Stevenson and the City Attorney were as follows: 1. Is this for phase 1 of the golf course? RESPONSE: The contract is for phase 1 of the conceptual master plan to design the first golf course to be built. 2. Section 1.1 Scope of Services - What are the standards prevalent in the Industry? RESPONSE: There are industry standards for all professions; this addresses the industry standards for golf course design. 3. 1.3 - In compliance with the law, contractor to notify agency of all the below prior to completion of contract. I think the agency should be notified. RESPONSE: none 4. 1.4 - Contractor shall obtain at its sole expense such licenses, permits and approvals as shall be required by law. Do we know what fees these will be? RESPONSE: I should indicate that this is our standard contract which we use for all contractual services with some minor modifications that have been negotiated by the City Attorney. The fees for the contractor and City are specified in the scope of services. City Attorney: Just as an example the contractor will be required to pay the business license fee for doing business in the City of La Quinta. 5. Is Attachment 1 the standard contract that we have all contracts? RESPONSE: It is largely our base document up to the Scope of Services, and just as an example of slight changes we made, the last line in 1.4 says the agency shall assist the Redevelopment Agency Minutes 5 July 22, 2003 Contractor in securing permits required by this agreement. This just means we will help them to get the necessary forms to fill out for required permits such as the business license. Comment Board Member Adolph: If this is the case and they can't just walk up to the counter to get the forms Kathy we're in deep trouble with this contract. 5. Top of page 5 - Contractor shall not be required to perform any additional services without compensation. What about errors, mistakes and so forth. RESPONSE: There is a clause that deals with notifying them of a mistake and a time period to cure that mistake. Curing a mistake is not the same thing as additional work. 6. 2.1 Contract Sum - Isn't the sum of $50,000 excessive for them to have only' 4-6 meetings and are they going to be required to provide receipts like the City Council does when they travel. RESPONSE: The figure was in the original proposal presented to the City and approved by the City Council when they determined to hire PCDC. They will be reimbursed for actual and necessary expenditures and will be required to document those expenses. 7. Why don't we specify an exact number of meetings they will attend, four, five, or six? 8. 2.2 Method of Payment - It says the initial payment shall be made by August 1, 2003, upon execution of the Agreement does that mean if we don't agree on it tonight it will change? RESPONSE: Yes, the time frames in the Scope of Work will change. The dates were established to fit into their work schedule and the City's desired time table. 9. 3.4 Term - It says this shall continue in full force and effect for two (2) years. RESPONSE: We anticipate six months for the design and we allowed 18 months for the construction of the course. 10. 4.2 Contract Officer - Who's the Contract Officer, it says shall be the Assistant Executive Director, who is that? RESPONSE: Mark Weiss is the Assistant Executive Director of the Redevelopment Agency Redevelopment Agency Minutes 6 July 22, 2003 11. 4.4 Independent Contractor - It says neither the Agency nor its employees shall have any control over the manner, mode or means by which Contractor performs the services required herein. We have no control whatsoever. RESPONSE: This is again standard language in all of our Professional Services Agreements and it is meant to make it perfectly clear that the Contractor is an independent contractor not a City employee. For purposes of insurance, liability, this is standard language. 12. 5.1 Insurance - Over $300,000, shouldn't that say over $300,000. RESPONSE: This is our standard contract and since it is over $300,000 that description is applicable. 13. The Term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi-trailer designed for travel on public roads. What about grading equipment for example. This company won't have grading equipment. This is not a contract for physical work, it's a design contract. 1 4. 5.2 Indemnification - It says "to the extent caused solely by the negligence or willful misconduct of Contractor, its officers, any one employed by Contractor and so on. Give me an example of what that means." RESPONSE: For example if after the course is construction it is over-watered by the City and someone gets injured as a result and files suit against just everybody for negligence the City would have the responsibility to defend the Palmer Group. 15. 6.1 Reports - Contractor shall periodically prepare and submit reports. Can't we be more specific to timing? RESPONSE: We have been more specific in the Scope of Services in the Contract. A good deal of the oversight and reporting will be provided by the Construction Manager. 16. 7.6 Mediation: What is JAMS? RESPONSE: It is the Judicial Arbitration and Mediation Services. This is put into the contract to provide for mediation prior to any litigation being entered into. 17. Page 16, During Phase 1, the Agency shall provide the Palmer Group specific source, quality and quantity of water for irrigation purposes. Does this mean we have to provide them with the amount of water they need for the golf course they design? RESPONSE: We have pledged to provide them with Redevelopment Agency Minutes 7 July 22, 2003 information on that we have currently entered into a contract with GMA (via Pace Engineering) to prepare the Water Management Plan. The Palmer Group is responsible to the design of the lakes, and the irrigation design system. It means we are responsible to provide them with a study which deals with the availability of water which will be addressed in the study that we have contracted. 18. Schematic site plans for clubhouse and maintenance - Are we going to be doing anything else other than what we have done? RESPONSE: We have in the works an RFP for a Building Architect to evaluate the suitability of the existing ranch house serving as a temporary clubhouse and determine if that would work as a temporary clubhouse or if it would be better to move modular buildings on site. We have a conceptual master plan that gives a general layout of what the permanent clubhouse site might be. The agency will make the determination if they want to pursue a permanent clubhouse immediately depending upon funding. 1 9. Preliminary Routing Plan to the Tournament Consultant-- Who's that? RESPONSE: Has not been selected yet. 20. It says Palmer Group will provide a copy of the Preliminary Routing Plan to the Tournament Consultant, have we any idea when that might happen? RESPONSE: It is our goal to bring that forward as early as August 19th. We would like to have a Final Routing Plan by the second meeting in September. 21. The preliminary Routing Plan by blank does that mean we need to fill in that blank. RESPONSE: It hopefully will be August 20th, the day after the preliminary routing plan is approved. 22. Prior to the commencement of Phase II, the Agency shall provide the Palmer Group with all of these things. Does that mean the agency staff will do this or does this all have to come to us and we have to approve all of it prior to it going to the Palmer Group? RESPONSE: The Agency staff will put this all together. 23. On (e) any special governmental or environmental requirements for the irrigation system. If they're doing the irrigation system why must we provide this information? RESPONSE: This relates to local regulations. It's simply a provision for us to Redevelopment Agency Minutes 8 July 22, 2003 provide them with any regulatory information that we may have to assist them in doing their job. 24. PHASE II - (a) Construction plans for features for the 18 holes of the Golf Course to in¢lude...l'm assuming that these are a complete set of plans that can be approved by the City building department. RESPONSE: These are plan drawings that are biddable. We would rely on the first sentence of that section which spells out the plans to be prepared will be as required and necessary for the construction of the Golf Course. City Manager Genovese added that the Golf Course Construction Plans would not go to the Building and Safety Department. They would go to the Engineering Department who would put together the bid package. 25. We're not building something that's not approved? RESPONSE: No. 26. The Agency is responsible for obtaining necessary permits to construct the Golf Course. Why are we obtaining the permits? Does that mean they'll give us the plans and we have to take them to whatever department is involved and get the permits? RESPONSE: That is technically correct since we are the developer. 27. What if they're not acceptable, we would require the revisions and they would make them without any additional charges? RESPONSE: Yes 28. It says in no event is the Palmer Group required to provide any civil engineering or vertical construction plans required, why not? RESPONSE: That would be for drainage and soil balances and that would come under the duties of the Civil Engineer: 29. Again it says the Agency shall provide all engineering and surveying, etc. Is it necessary for us to provide all of this? RESPONSE: This will all be provided by the Civil Engineer who will be working closely with the Palmer Group but the agency will have to approve all of the listed items in order to go to bid. 30. So the Agency will have to approve all of this? Are we going to be hiring the Civil Engineer who will work with the Palmer Group and staff to put the package all together? RESPONSE: Redevelopment Agency Minutes 9 July 22, 2003 Yes that is in their scope of work. We will be requiring a mass grading plan completed which will require closely working with the Palmer Group. We would like to have this so we could go out to bid prior to the actual construction plan. 31. So actually this should read the Palmer Group will be assisting the Agency...In what manner? RESPONSE: Grading for example, they will prepare the routing plan and the Civil Engineer will locate the boundaries, survey and provide that information as well as assist with the drainage plan and other necessary engineering functions. Board Member Adolph finished by saying he liked the last line on page 18 that says the Agency won't be required to pay for services not provided by the Palmer Group. Mr. Andy Vossler, stated this consistently refers to an 18 hole golf course, but doesn't include the driving range. He suggested specific requirements for the driving range be included because a driving range is different for just a country club as opposed to a tournament course. He questioned when the Palmer Group principals would be on site. He felt a specific date or dates should be specified when Mr. Larsen and Mr. Williams will be present. He felt it should be clear when the Palmer Group would be having someone in the area full time. He took exception to the provisions of 1.6 Additional Services. He also felt the plans and specifications need to be "tightened up". He said par has not been mentioned nor has yardage. In response to Chairperson Henderson he said it should state yardage should be 7,000 to 7,400 and that should be stated in the contract. Board Member Adolph felt the contract should say yardage has to be at least 7,800 yards to be of championship caliber. Mr. Vossler said he personally couldn't go forward with this contract. He felt the standard for the golf course is what is going to drive the marketing studies. He also questioned who the Tournament Consultant is or what that is. He didn't seem to believe the position is necessary. Chairperson Henderson said she is aware of a wonderful group of golf professionals in the Coachella Valley and one of those people might be the Tournament Consultant. Redevelopment Agency Minutes 10 July 22, 2003 Mr. Vossler questioned the type of water testing the Palmer Group would be providing. Assistant Executive Director Weiss said this will be provided by an Agronomist and this testing would be in terms of water quality. He also questioned Phase II (a) on page 17, saying that is where the driving range and practice facilities should be. He also stated the Agency should be deciding now how and with what they are going to water two golf courses with. Mr Weiss advised that the City has already commissioned MDS to prepare a water management plan. He stated in (a) at the bottom of page 17, the storm drainage system and bridges should not be excluded from the grading plans. He referred to page 18 and the statement that says the Palmer Group is not required to provide advice with respect to the Golf Course or its related facilities. He expressed concern about the surveying the City is to provide, stating there are no provisions to protect the staking to avoid having to do it a second time. He also said the entry road should be addressed in Phase III. On page 18(d) he disagreed with the provision that states monitoring of all phases of the construction work when and as deemed necessary by the Palmer Group. He also felt the statement that the Agency agrees that if the Palmer Group is not available to do Phase III the City could not use their name without their agreement is not in the City's best interest. City Attorney Jenson advised the City has provided a time window that PCDC has agreed with and that time period was expanded to allow an extra year past the City's anticipated completion date. He said on page 19, it says "Owner agrees to provide competent construction personnel to properly interpret all Golf Course plans, sketches and field instructions provided by PCDC." He stated he didn't understand that. Assistant Executive Director Weiss said the City is hiring a construction manager and has asked PCDC for recommendations of qualified contractors. The clause means we've agreed to hire competent construction personnel to build the course they've designed. He asked if RBF has been selected as the Civil Engineer. Assistant Executive Director Weiss said MBS is doing some work for the City on off-site and getting rid of some of the easements onsite. They have not been selected to be the Civil Engineer on the project. RECESS - The Agency took a short break at 10:30 p.m. Redevelopment Agency Minutes I I July 22, 2003 Council Member Osborne asked the following questions and City Staff responded as follows: 1. How professional has their attorney been during the negotiation of this contract? RESPONSE: Both the City Attorney and the Assistant Executive Director replied they have been very professional and very responsive. 2. Page 4. - Additional Services that may be necessary. Did you have anything specifically in mind when that was put into the contract? RESPONSE: On page 20 there is a Schedule of Additional Services, and we've provided some additional services that could possibly be required that would require additional funds but that would have to come back to the Agency Board. 3. Page 5. - Did the City staff request that number of meetings? RESPONSE: That was the suggestion of the Palmer Group and staff was happy with that because they expected less. The four to six meetings provides for formal agency meetings. 4. Page 6. - On the control of how well the design is done will the Agency Board have the final say in this? RESPONSE: The Routing Plan has to come back to the Agency for approval and we must provide them with written approval. 5. Has a critical path schedule been done? RESPONSE: A schedule could certainly be put together. We would expect a monthly report of the schedule of the key events from the architect as well as a status report. In the contract there are dates for certain milestones that have to be met and I (Mr. Stevenson) expect a much more detailed scheduling document will be distributed to us and to all of the other consultants who will also need it to keep on schedule. 6. On page 16 - can you explain a little bit more about what the Tournament Consultant position will entail? RESPONSE: The objective is to ensure we have a tournament quality course, one that can accommodate things like corporate tents, TV. coverage with proper angles for that kind of coverage, etc. 7. Prior to the commencement of Phase II, the environmental impact studies, where are we on them. The environmental Redevelopment Agency Minutes 12 July 22, 2003 reviews necessary was done through the Mitigated Negative Declaration at the acquisition of the property. There may be a report required during construction to address wetlands but not for the completion of the design. 8. The survey of the golf course centerlines, golf course corridors, now what is that referring to: RESPONSE: That is to be sure after they have completed their routing plan they want to have a more precise survey to make sure it will fit within the envelope. That will be provided by our Civil Engineer. 9. what about (d) test drilling for the development of subterranean data and soil analysis. RESPONSE: That is also a part of our Civil Engineering contract. 10. What about item (e) what does that relate to? RESPONSE: The issue there is regulating the distances to sewer and water facilities; there is some regulation of the proximity of sewer facilities to water facilities. 11. What kinds of permits is the City to obtain? RESPONSE: We will need a grading permit and the City will obtain that, we also have to rid the property of some of the easements. The answer again is that the City is responsible for attaining the necessary permits because the City is the builder of the project. 12. When will be the start of the grading? RESPONSE: Probably in January 2004. '13. The specific language regarding the driving range, can that be added to the contract? RESPONSE: That is pretty well covered in the preliminary plan but we can certainly add it to Phase II (a). We'll be happy to do that and report it to the Palmer Group and if there is any problem we'll report back to the Agency. 14. On page 18 regarding phase III (d), can monitoring be specified? RESPONSE: Assistant Executive Director Weiss responded different architects have specific styles of working, it doesn't seem practical to dictate to the architect when they should come out when we don't know where they are in the development of the design. It is his understanding that they plan to make approximately 20 site visits and they do have Mr. Redevelopment Agency Minutes 13 July 22, 2003 Chapman who lives locally so they do have a local representative here all the time. 15. Does the yardage need to be specified? RESPONSE: If the Agency wishes to do that they certainly can. This has been specified to be a major, quality, tournament course. The architect is aware of that and should determine that in the design. Council Member Sniff questioned a number of provisions regarding the proposed agreement and made a number of comments. Staff comprised of the City Attorney, the Assistant Executive Director and the Development Coordinator responded as follows: 1. Board Member Sniff stated he would like to have, from staff, a summary of all the agency's additional costs that are not listed in the contract. 2. On page 4, he was concerned about standards prevalent in the industry and there's no definition of that. Staff hasn't responded to that with any specificity and I think that's important. 3. Page 5, contractor will not be required to perform any additional services without payment. I'm not sure what additional services this refers to. RESPONSE: On page 20 there is a list of possible additional services. This is also a standard condition. 4. Concerned about this and I know its been referenced twice before but I'm going to ask it again. They will attend between 4-6 meetings with the Agency Board. Is this a time when the Agency will have the opportunity to provide any meaningful comments or direction? RESPONSE: Yes City Manager Genovese commented that the schedule calls for the routing plan to come before the Agency Board and at that time the Board Members have the opportunity to make their comments. Whether the comments are meaningful will depend on whether the agency board reaches a consensus on them. 5. Board Member Sniff stated, "what you're saying is that unless we all agree with anything the consensus of the board will be the only thing that will be listened to and that the die is already Redevelopment Agency Minutes 14 July 22, 2003 cast and no matter what we say it can not be changed, altered, or redirected is that what you're saying or not?" RESPONSE: Based on the consensus of this board the board can make changes at any time. 5. Contract Officer has been authorized to act on behalf of this agency. So by approving this and by other decisions the board has made, the Contract Officer is basically in charge is that correct. RESPONSE: The Contract Officer takes direction from the agency and is authorized to serve as the staff contact with Palmer Design. 6. On page 7, Independent Contractor - As I read this the contractor has total control, neither the agency nor any of its employees shall have any control over the manner, mode or means, and so on. RESPONSE: This answer has been given before. This is boiler plate language that relates to them being an independent contractor. It would simply mean that we can't tell them how to draw or prepare their plans for example. City Manager Genovese interjected that this also refers to a number of personnel laws that have been passed to make sure there is not, in fact, any connection to them serving the City as employees but as independent contractors and we are not giving them a place and area for them to complete their work. 7. On the next page, errors and omissions liability insurance in the amount of Five Million Dollars. What does that exactly mean? RESPONSE: It is to cover them in the event an injury would arise. Suppose there is an error that results in more than Five Million Dollars, who's responsible then? RESPONSE: They are personally liable. They are required to carry a certain amount of insurance and in fact this is higher than the standard amount, but even though they were to have a larger claim they would still be liable. This doesn't limit their liability. In another section there is a section that addresses the specific matter of indemnifying them should the City get sued and they are named as well. The City has required a similar indemnity from the PCDC. 8. Where are the records and reports going to be presented? RESPONSE: Again this is a standard contract provision. We really don't have any requirement in here for a Redevelopment Agency Minutes 15 July 22, 2003 timetable of reports. What we are expecting, is for them to complete and present plans not reports. 9. Records, where are these records, where are they to be kept? I notice they shall be available to the Contract Officer but where does he have to go to see them. RESPONSE: They will mostly be kept in Florida at the offices of Palmer Design. They will be sending us copies of the work that they are generating and it is reasonable to expect that their records would be kept at their location. This is again a standard provision in our contracts and it has stood the test of time for decades. 10. On page 16 - Scope of Services - Agency shall provide quantity and quality of water for Golf Course irrigation purposes. Are you going to ask them to test canal water, water in general or well water? RESPONSE: PCDC is responsible for the water testing and while I believe canal water will be the primary source of the golf course water, other water will be used and I believe it would be prudent for them to test all sources of water. 11. Do you know if they are going to set a standard for the quality of the water, and if they are I want to see it? RESPONSE: So noted. 12. I don't understand in the paragraph that starts PCDC agrees that provided that the Agency has supplied the information and so on. That doesn't make sense that provided that...RESPONSE: This could use a comma or removal of one of the words 'that.' 13. Here are more of these extra costs - Prior to the commencement of Phase II, the Agency shall provide then (a) through (d), and do we have any idea of the cost of these? RESPONSE: The agency staff has put forth the agency budget which you have approved and I don't think there is anything here that is outside of that budget. 14. What about the test drilling, if it's done it will cost money is that correct. RESPONSE: Certainly. 15. Page 17, in paragraph (a) at the bottom of the page. I think storm drains and bridges should be listed in there. Redevelopment Agency Minutes 16 July 22, 2003 1 6. Page 18, near the top of the page (a) and (b) the Agency shall provide all mass grading and drainage, cut and fill and surveying. I still want some indication of what all of these will cost, over and above what the contract gives. RESPONSE: We have given the agency preliminary figures, but we won't have the definitive costs until we enter into a contract for Engineering Services. We do have the costs for the mass grading for example which was itemized when we entered into the contract with GMA for example. We've given the agency the approximate costs in the Fiscal Implications section of this report. 17. Page 19, CONSTRUCTION OF THE COURSE - Owner agrees to supply competent construction personnel to properly interpret all Golf Course plans, sketches, and field instructions. I'm not sure what competent and proper means, and who would that competent personnel be? RESPONSE: As I've tried to indicate before, we would attempt to hire highly competent and experienced staff to execute the design that has been prepared by the Palmer Group. 18. Further on down it says If any material change is made. Can you tell me with any degree of certainty what material means? RESPONSE: It's a legal term that means anything substantial or substantive. Council Member Sniff commented that those words are subjective and don't explain what the term material means. 19. Page 20 - Appearances by Palmer. I think that is sensitive because he is required to make two visits and although he lives next door to the property, he would be compensated for that. What I read in here is we basically can't have Palmer come any time at our convenience, is that correct. RESPONSE: That's correct. 20. Ithink the use of the Palmer name is sensitive, because it was determined, by some of the agency members here that the Arnold Palmer name was worth a significant amount of additional punch. Since this company was Redevelopment Agency Minutes 17 July 22, 2003 chosen over others whose proposals came in the $650 range, I think we should be able to get something more for the expenditure of about $400,000. just for his name. 21. Page 22 - It says if the golf course is not maintained to the standards, Owner shall forfeit its right to advertise and promote... What standards are they referring to? RESPONSE: We negotiated this to refer to their other public courses and the manner in which they are maintained. Their concern is, of course, for the course to be maintained in such a manner that it deserves the Palmer signature. 22. Shouldn't there be a designated party to inspect the golf course? What can we do if they suddenly don't like the way we're taking care of the golf course. RESPONSE: This has been set up for PGA standards. We also have injunctive relief so the name couldn't suddenly be withdrawn without the City being notified and given the time to cure any maintenance problems. 23. Why don't we have the same rights to have our name on all these promotional items such as caps, shirts, towels, etc? Do we? RESPONSE: No. Andy Vossler, spoke to the condition dealing with the maintenance of the golf course. He said the United States Golf Association has what is called a "greens section" that you can call and they come to your golf course and they give you evaluations. This would be a third-party that you might want to say you want to take advantage of that service. 24. Disputes - based on what I read in here we need some means or method or form of mediation. I don't see this spelled out in here. RESPONSE: We have used JAMS in the past and I believe that section 7.6 is very well written by them. 25. Did you get that name from them? How did you select them? RESPONSE: No, I (City Attorney) selected them. They are located in Orange County near my offices and my firm has used them before and is very happy with the mediation services they provide. Redevelopment Agency Minutes 18 July 22, 2003 26. As to the review of this project, I'm still not happy with what I've heard. I feel this is our collective project and we should have meaningful involvement, in the form of information and direction, and I want to know who provides the oversight for this project. RESPONSE: That would be the Contract Officer, assisted by the Development Coordinator and the other specialist we plan to have on board shortly. 27. Is there any method or way to modify this agreement? RESPONSE: On page 13, section 9.4 is the process for amendment and it requires mutual agreement on the part of the parties. 28. Other Proposals - I think there is a huge difference between other proposals and Arnold Palmers and I'm very sensitive to that difference of about a minimum of $250,000. over those other proposals. 29. Do we have any control over subcontractors? RESPONSE: On page 6 under section 4.3, we have prohibited without our approval and we have identified two subcontractors who we have approved in this contract. 30. So we have unilateral control is that Correct? RESPONSE: That is correct. 31. So would that be brought to us or to the Contract Officer? RESPONSE: (Chairperson Henderson). It would appear that since it's spelled out here, that if they started using subcontractOrs without our permission the Contract Office would put a stop to it immediately. It shouldn't have to wait to come back to us to tell him how to do his job. Board Member Adolph said should the Agency determine a subcontractor is necessary to do a certain job we will make that determination. Assistant Executive Director Mark Weiss said, "1 would be more than comfortable with that." 32. If there should be litigation, can they or can we go straight to court without having to go to mediation? RESPONSE: Each party has injunctive relief and could go Redevelopment Agency Minutes 19 July 22, 2003 right to litigation. Injunctive relief would have to be something that required immediate action. All other matters would have to go to mediation. 33. He said he feels the Board needs to deal with third party monitoring of the landscaping. Board Member Perkins said he had only one thing that hasn't already been covered. On Page 7, under 4.4 Independent Contractor - He wanted to stress that if the Agency begins to tell the contractor how to do and/or when to do his job and what equipment he can use, those are the very things that make him an Independent Contractor. He said "If you cross that line, then you've opened yourself up to a Pandora's Box and become liable to pay for everything the employer is required to provide by the State" Board Member Sniff said he feels the wording, "except as otherwise set forth" doesn't make that a totally definitive statement. Board Member Perkins reiterated that was exactly what he said; the Agency can not dictate how the contractor performs because there aren't any otherwise set forth provisions. Chairperson Henderson stated she has never, in the eight years she has been elected to this body, spent so much time on what is the City's standard contract. She said one must understand the particulars of the contract are contained in the scope of services. She said some of what has been said is very informative and she also is grateful to Mr. Vossler for what she views as his sincere effort to be of help to the Agency. She felt with regard to the driving range, the agency might want to look at adding some language that would address some of the outstanding issues. Chairperson Henderson said she would like to address the statement that keeps coming up over and over again regarding not having "meaningful" input into the review process on this project. She sympathized with Board Member Sniff's disappointment that his vision of the project has not been embraced by the majority of the board. Chairperson Henderson stated she is comfortable with the selection of the architect, with the conceptual master plan and knows of no input that the architect will need in the next 30 days. Redevelopment Agency Minutes 20 July 22, 2003 She questioned staff on the critical path that has been discussed and her opinion is that phases one, two, and three are the critical path. She felt to create a "critical path" the architect would only have to turn to the Planning, Design and Construction Checklist on page 32 of the report making it horizontal and using bars to indicate the time lines. Since the PCDC has stayed within the six month time period and identified significant milestones it would be the same. Development Consultant Roy Stevenson responded, "in essence it would work that way". She also commented on the water tank that has been erected up in the mountain and felt any requests for a couple of tee boxes should not be very difficult to obtain. The huge water tank isn't going to persuade any Big Horn Sheep into the area. Agency Member Osborne asked where on the Planning, Design and Construction Checklist it shows when the course layout will be ready. Assistant Director Weiss said they are referring to an internal document used by the Palmer Course Design Company to keep them on track with what they need to do. However, in Phase I, Page 33, the Step labeled as J does show the Final Golf Course Routing and Master Land Plan. Agency Bo'ard Member Osborne offered the following motion: Accept the Palmer Course Design Company with the following changes: that wording be added stating the Driving Range specifications, that the number of meetings with the agency be defined as six, that the due dates will be completed within the Planning, Design and Construction check list to provide a timeline on the different areas that they will be providing services and that the Greens Section be utilized to review any maintenance concerns of PCDC as outlined on page 22. The motion was seconded by Agency Board Member Perkins. Agency Board Member Adolph commented that he hasn't seen the Palmer Group in the audience when this sort of matter is on the agenda. He said he sees only deeply involved and concerned citizens. He added he couldn't support the contract unless it is "deeply massaged". Agency Board Member Sniff felt there is a lack of specificity and information in the contract and he felt he didn't have the opportunity to supply any meaningful, up-front, input into the planning of the course. He doesn't feel this will be the really great project that the Redevelopment Agency Minutes 21 July 22, 2003 City deserves but because he doesn't have that input when its appropriate he can't support the document. City Attorney Jenson asked for clarification if it was the agency's intention to require the Greens group with the PGA to monitor or mediate any maintenance concerns? Mr. John Ports spoke about the Greens Section and said they are a group of PGA members who routinely, once or twice a year, visit the golf courses, look them over and make suggestions about turf or landscaping and that sort of thing to make sure they keep up to tournament standards. Chairperson Henderson asked if this is something they already do and Mr. Potts responded yes. Agency Member Osborn said under those circumstances he would like to amend his motion to remove the reference to the Greens group. Agency Member Sniff requested to hear the motion again. Agency Member Osborne stated it was the same as originally moved that the Driving Range specifications be included in the contract under Scope of Services on page 1 7 where it lists tees, fairways, roughs and so on. That the required meetings be stated as six rather than four to six in 2.1 Contract Sum and the due dates, that are now blank in the Planning Design and Construction Check List be completed. Agency Member Perkins, maker of the second, agreed with the amendment and the motion carried with Agency Members Adolph and Sniff voting NO. STUDY SESSION - None CHAIR AND BOARD MEMBERS' ITEMS - None JOINT PUBLIC HEARINGS WITH THE LA QUINTA CITY COUNCIL 1. PUBLIC HEARING BETWEEN THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 52-665 AVENIDA RAMIREZ BY AND Redevelopment Agency Minutes 22 July 22, 2003 BETWEEN CHRISTIN JOHNSON AND THE LA QUINTA REDEVELOPMENT AGENCY, AND AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY DOCUMENTS. Planning Manager Oscar Orsi presented the staff report. Redevelopment Agency Chair Henderson reopened the Redevelopment Agency meeting and opened the Public Hearing at 8:51 p.m. There being no requests to speak, the Board Member declared the joint PUBLIC HEARING CLOSED at 8:52 p.m. MOTION - It was moved by Board Members Sniff/Osborne to approve an agreement to sell real property located at 52-665 Avenida Ramirez by and between Christin Johnson and the La Quinta Redevelopment Agency in the sum of $130,000 and authorize the Executive Director to execute the necessary documents. Motion carried unanimously. Board Member Henderson congratulated Ms. Johnson who was in the audience on becoming a first time homeowner. 2. PUBLIC HEARING BETWEEN THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 53-275 AVENIDA RAMIREZ BY AND BETWEEN GRACIELA CANTU AND THE LA QUINTA REDEVELOPMENT AGENCY AND AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXCECUTE THE NECESSARY DOCUMENTS. Planning Manager Oscar Orsi presented the staff report. The Chair declared the PUBLIC HEARING OPEN at 9:00 p.m. There being no requests to speak, the Chair declared the PUBLIC HEARING CLOSED at 9:00 p.m. MOTION - It was moved by Board Members Sniff/Adolph to approve an agreement to sell real property located at 53-275 Avenida Ramirez by and between Graciela Cantu and the La Quinta Redevelopment Agency in the amount of 9130,000 and authorized the Executive Director to execute the necessary documents. Motion carried unanimously. Redevelopment Agency Minutes 23 July 22, 2003 The City Attorney announced there were no decisions made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ADJOURNMENT There being no further business, it was moved by Board Members Perkins and Osborne to adjourn the meeting at 11'52 p.m. Motion carried unanimously. Respectfully submitted, JUNE S. GREEK, Secretary City of La Quinta, California