2004 06 15 RDAI � el a
4e 44
Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, June 15, 2004 - 2:00 P.M.
Beginning Resolution No. RA 2004-011
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
CLOSED SESSION
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, JERRY HERMAN,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
Redevelopment Agency Agenda
June 15, 2004
PROPERTY LOCATED EAST OF DUNE PALMS ROAD AND 650 FEET SOUTH OF
HIGHWAY 1 1 1, WHICH INCLUDES OR IS A PORTION OF APNs: 649-030-016,
-017, AND -040, FOR AN AFFORDABLE HOUSING AGREEMENT. PROPERTY
OWNER/NEGOTIATOR: DOUGLAS P. BIGLEY; URBAN PROPERTY COMMUNITIES.
2. 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 AT THE NORTHWEST CORNER OF AVENUE 48 AND DUNE
PALMS ROAD (APN: 649-303-034). PROPERTY OWNER/NEGOTIATOR: STAN
ROTHBART.
RECONVENE AT 3:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear
within the Consent Calendar or matters that are not listed on the agenda. Please complete
a "request to speak" form and limit your comments to three minutes. When you are called
to speak, please come forward and state your name for the record. Please watch the
timing device on the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF JUNE 1, 2004
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED JUNE 15, 2004.
2. TRANSMITTAL OF TREASURER'S REPORT DATED APRIL 30, 2004.
3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED APRIL 30, 2004.
Redevelopment Agency Agenda 2 June 15, 2004
4. APPROVAL OF AMENDED AGREEMENT FOR LEGAL SERVICES WITH RUTAN AND
TUCKER, LLP.
5. APPROVAL OF PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE AND
AUTHORIZATION TO ADVERTISE FOR BID THE SILVERROCK RESORT
TEMPORARY CLUB HOUSE, PROJECT 2002-7H.
6. APPROVAL OF CONTRACT CHANGE ORDER NOS. 4 AND 5, TO WOOD BROS.,
INC. FOR SILVERROCK RESORT HOTEL PADS AND ADDITIONAL WORK AROUND
A VERIZON TELEPHONE FACILITY, PROJECT NO. 2002-02B, MASS GRADING.
7. APPROVAL OF A LOAN AGREEMENT BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND THE CITY OF LA QUINTA FOR A LOAN OF UP TO
$5,800,000, AND APPROPRIATION OF $5,800,000 FROM THE LA QUINTA
REDEVELOPMENT PROJECT NO. 2 CAPITAL PROJECTS FUND AND $8,720,000
FROM THE PROCEEDS OF THE SUPPLEMENTAL LOAN AGREEMENT BETWEEN
THE LA QUINTA FINANCING AUTHORITY AND THE LA QUINTA REDEVELOPMENT
AGENCY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY LOCATED AT THE
NORTHWEST CORNER OF DUNE PALMS ROAD AND AVENUE 48.
8. APPROVAL TO AWARD A CONTRACT TO DAVIS/REED CONSTRUCTION TO
CONSTRUCT THE SILVERROCK RESORT MAINTENANCE BUILDING, COMFORT
STATIONS AND PUMP HOUSE, PROJECT NO. 2002-7D.
BUSINESS SESSION
1. CONSIDERATION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2004/2005.
A. RESOLUTION ACTION
2. CONSIDERATION OF BRAND PROMISE FOR SILVERROCK RESORT.
A. MINUTE ORDER ACTION
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS - NONE
Redevelopment Agency Agenda 3 June 15, 2004
ADJOURNMENT
Adjourn to a Special Meeting of the Redevelopment Agency to be held on June 18, 2004,
at 10:00 a.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of Tuesday, June 15, 2004, was
posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the
bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway
111, on Friday, June 11, 2004.
DATED: June 11, 2004
1
�R JUNE S. GREEK, CIVIC City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 June 15, 2004
COUNCEURDA MEETING DATE: JUNE 15, 2004
ITEM TITLE:
Demand Register Dated June 15, 2004
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated June 15, 2004 of which $2,012,902.82
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
Incovaam 4
M G5
C�At OFF AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: June 15, 2004
ITEM TITLE:
Transmittal of Treasurer's Report
as of April 30, 2004
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
BUSINESS SESSION:
CONSENT CALENDAR:
--
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
COUNCIL/RDA MEETING DATE: June 15, 2004
Transmittal of Revenue and Expenditure Report for
April 30, 2004
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the Statement of Revenue and Expenditures for April 30, 2004 for the
La Quinta Redevelopment Agency.
Resctfully su mit ed,
John M. Falc ner, Financ
e Director
p v for submissi b
Thomas P. Genovese, Executive Director
Attachments: 1. Revenue and Expenditures for April 30, 2004
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interst - County Loan
Interest Advance Proceeds
Transfers in
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
23,134,787.00
11,977,735.63
11,157,051.37
51.770%
66,000.00
109,096.29
(43,096.29)
165.300%
0.00
784.41
(784.41)
0.000%
0.00
0.00
0.00
0.000%
967,182.00
0.00
967,182.00
0.000%
1,731,455.00
1,731,455.00
0.00
100.000%
25,899,424.00
13,819,071.33
12,080,352.67
53.360%
0.00 191,923.83 (191,923.83) 0.000%
Non Allocated Interest
437,100.00
254,771.80
182,328.20
58.290%
Litigation Settlement Revenue
0.00
0.00
0.00
0.000%
Loan Proceeds
0.00
0.00
0.00
0.000%
Rental Income
4,530.00
6,794.40
(2,264.40)
149.990%
Transfers In
0.00
0.00
0.00
0.000%
TOTAL CAPITAL IMPROVEMENT
441,630.00
453,490.03
(11,860.03)
102.690%
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
Non Allocated Interest
Litigation Settlement Revenue
Bond proceeds
Rental Income
Transfers In
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
0.00
(262.86)
262.86
0.000%
0.00
56,357.04
(56,357.04)
0.000%
0.00
0.00
0.00
0.000%
26,400,000.00
26,400,000.00
0.00
100.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
26,400,000.00
26,456,094.18
(56,094.18)
100.210%
5,783,697.00
2,994,433.96
2,789,263.04
51.770%
4,400.00
5,967.74
(1,567.74)
135.630%
0.00
0.00
0.00
0.000%
0.00,
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
341,000.00
306,172.48
34,827.52
89.790%
150,000.00
215,820.56
(65,820.56)
143.880%
0.00
0.00
0.00
0.000%
0.00
128,174.63
(128,174.63)
0.000%
0.00
3,929.15
(3,929.15)
0.000%
0.00
396,047.58
(396,047.58)
0.000%
0.00
0.00
0.00
0.000%
6,279,097.00
4,050,546.10
2,228,550.90
64.510%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
2
LA QUINTA REDEVELOPMENT AGENCY
07/01/2003 - 4130/04
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO, 1:
DEBT SERVICE FUND:
SERVICES
394,585.00
355,986.74
0.00
38,598.26
BOND PRINCIPAL
2,208,831.00
2,208,831.00
0.00
0.00
BOND INTEREST
8,060,234.00
8,060,234.64
0.00
(0.64)
INTEREST CITY ADVANCE
967,182.00
805,985.00
0.00
161,197.00
PASS THROUGH PAYMENTS
11,011,803.00
5,861,839.55
0.00
5,149,963.45
ERAF SHIFT
1,467,995.00
1,467,995.00
0.00
0.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL DEBT SERVICE
24,110,630.00
18,760,871.93
0.00
5,349,758.07
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
9,459.99
0.00
(4,559.99)
SERVICES
99,619.00
121,122.41
0.00
(21,503.41)
LAND ACQUISITION
307,300.00
292,410.55
0.00
14,889.45
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
16,700.00
25,758.55
0.00
(9,058.55)
ECONOMIC DEVELOPMENT
187,000.00
131,138.73
0.00
55,861.27
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
CAPITAL - BUILDING
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
1,225,208.00
1,021,005.00
0.00
204,203.00
TRANSFERS OUT
27,628,079.00
11,907,075.52
0.00
39,535,154.52
TOTAL CAPITAL IMPROVEMENT
29,468,806.00
10, ,180.29
.00
39,774,986.29
CAPITAL IMPROVEMENT FUNDITAXABLE BOND
BOND ISSUANCE COSTS
955,822.00
949,968.12
0.00
5,853.88
TRANSFERS OUT
25,444,178.00
15,548,641.97
0.00
9,895,636.03
TOTAL CAPITAL IMPROVEMENT
26,400,000.
16,4 ,510.09
0.00
9,901,489.91
LOWIMODERATE TAX FUND:
PERSONNEL
4,900.00
9,459.99
0.00
(4,559.99)
SERVICES
250,497.00
213,576.45
0.00
36,920.55
BUILDING HORIZONS
210,000.00
0.00
0.00
210,000.00
LQ RENTAL PROGRAM
150,000.00
162,490.51
0.00
(12,490.51)
LQ HOUSING PROGRAM
1,509,196.00
1,140,956.00
0.00
368,240.00
LOWMOD VILLAGE APARTMENTS
2,350,000.00
0.00
0.00
2,350,000.00
LQRP - REHABILITATION
426,411.00
0.00
0.00
426,411.00
APT REHABILITATION
350,000.00
0.00
0.00
350,000.00
FORECLOSURE ACQUISITION
220,000.00
220,000.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
82,595.00
68,829.20
0.00
13,765.80
TRANSFERS OUT
3,898,079.00
3,286,621.35
0.00
611,457.65
TOTAL LOWIMOD TAX
9,451,678.00
5,1 1, .50
0.00
4,34 ,744.50
LOWIMODERATE BOND FUND
PERSONNEL
0.00
0.00
0.00
0.00
SERVICES
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
0.00
HOUSING PROJECTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
74,623.00
74,623.00
0.00
0.00
TOTAL LOWIMOD BOND
74,623.00
74,62 .00
0.00
0.00
K
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO.2:
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
.Allocated Interest
Non Allocated Interest
Developer Agreement
Transfers In
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Developer funding
2nd Trust Deed Repayment
ERAF Shift - Interest
Sale of Land
Transfer In
TOTAL LOW/MOD TAX
REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
11,465,062.00
6,011,441.12
5,473,620.88
52.340%
0.00
39,790.25
(39,790.25)
0.000%
0.00
34.73
(34.73)
0.000%
863,674.00
0.00
863,674.00
0.000%
3,442,855.00
337,984.00
3,104,871.00
9.820%
15,791,591.00
6,389,250.10
9,402,340.90
40.460%
0.00
17,936.90
(17,936.90)
0.000%
0.00
18,457.33
(18,457.33)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
36,394.23
(36,394.23)
0.000%
2,871,265.00
1,502,860.28
1,368,404.72
52.340%
7,400.00
71,370.40
(63,970.40)
964.460%
20,000.00
0.00
20,000.00
0.000%
7,054,074.00
622,304.65
6,431,769.35
8.820%
0.00
55,733.59
(55,733.59)
0.000%
0.00
0.00
0.00
0.000%
0.00
108,570.08
(108,570.08)
0.000%
0.00
0.00
0.00
0.000%
9,952,739.00
2,360,839.00
7,591,900.00
23.720%
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
400,000.00
0.00
400,000.00
0.000%
Bond proceeds (net)
39,150,000.00
0.00
39,150,000.00
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
39,550,000.00
0.00
39,550,000.00
0.000%
4
LA QUINTA REDEVELOPMENT AGENCY
07101/2003.4130/04
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO.2:
DEBT SERVICE FUND:
SERVICES
229,013.00
167,988.69
0.00
61,024.31
BOND PRINCIPAL
176,169.00
176,169.00
0.00
0.00
BOND INTEREST
578,895.00
578,894.14
0.00
0.86
INTEREST CITY ADVANCE
957,800.00
798,166.66
0.00
159,633.34
INTEREST - ERAF L/MOD LOAN
0.00
0.00
0.00
0.00
PASS THROUGH PAYMENTS
9,779,225.00
4,890,112.89
0.00
4,889,112.11
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL DEBT SERVICE
11,721,102.00
6,611,331.3
0.00
5,1 ,7 0.62
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
5,723.45
0.00
(2,823.45)
SERVICES
78,544.00
93,969.02
0.00
(15,425.02)
ADVERTISING -ECONOMIC DEV
0.00
8,041.13
0.00
(8,041.13)
ECONOMIC DEVELOPMENT ACTIVITY
0.00
5,702.81
0.00
(5,702.81)
REIMBURSEMENT TO GEN FUND
34,509.00
28,755.80
0.00
5,753.20
TRANSFERS OUT
(36,670.00)
(47,737.01)
0.00
11,067.01
.
TOTAL CAPITAL IMPROVEMENT
79,283.00
94,455.20
0.00
(16,172.20)
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
5,724.39
0.00
(2,824,39)
SERVICES
127,171.00
141,063.76
0.00
(13,892.76)
2ND TRUST DEEDS
150,000.00
0.00
0.00
150,000.00
2ND TRUST DEEDS FROM CENTERPOINTE
2,520,000.00
0.00
0.00
2,520,000.00
48TH AND ADAMS - FROM CENTERPOINTE
1,423,203.00
0.00
0.00
1,423,203.00
LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ
533,943.00
0.00
0.00
533,943.00
48TH/ADAMS PLANNING
480,000.00
280,000.00
0.00
200,000.00
FORECLOSURE ACQUISITION
150,000.00
0.00
0.00
150,000.00
REIMBURSEMENT TO GEN FUND
71,988.00
59,990.00
0.00
11,998.00
TRANSFERS OUT
10,131,066.00
1,393,149.00
0.00
8,737,917.00
TOTAL LOWIMOD TAX
15, 90,2 1.00
1,879,927.16
0.00
13,710,343.85
LOW/MODERATE BOND FUND
2nd TRUST DEEDS
7,000,000.00
0.00
0.00
7,000,000.00
LAND
31,000,000.00
0.00
0.00
31,000,000.00
BOND ISSUANCE COSTS
1,500,000.00
0.00
0.00
1,500,000.00
TRANSFERS OUT
50,000.00
0.00
0.00
50,000.00
TOTAL LOWIMOD BOND
39,550,000.00
0.00
0.00
9, ,000. 0
5
ti Lam
w
1 MOM
OF T9
COUNCIL/RDA MEETING DATE: June 15, 2004
ITEM TITLE: Approval of Amended Agreement for Legal
Services with Rutan & Tucker, LLP
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Please see the same report under the City Council agenda.
Respectfully submitted,
r;4 •
M. Katherine Jenson, City Attorney
7eyt- k�T
Approved for submission by:
Thomas P. Genovese, City Manager
COUNCIL/RDA MEETING DATE: June 15, 2004
ITEM TITLE: Approval of Plans, Specifications and
Engineer's Estimate and Authorization to Advertise for
Bid for SilverRock Resort Temporary Clubhouse, Project
2002-07 H
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 5
STUDY SESSION:
PUBLIC HEARING:
Approve the Plans, Specifications, and Engineer's Estimate (PS&E) of probable
construction costs and authorize staff to advertise for bids for the temporary clubhouse for
the SilverRock Resort, Project No. 2002-07H.
FISCAL IMPLICATIONS:
The SilverRock Resort improvements are included within the Fiscal Year 2003/2004
Capital Improvement Program (CIP). Based upon the Engineer's estimate of probable
construction costs in the amount of $650,000, the following represents the anticipated
project budget:
Activity Budget
Construction $650,000
Inspection/Testing/Survey $6,000
Contingency - 10% $65,000
TOTAL: $721,000
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 18, 2003 the Redevelopment Agency approved a contract with the
Dahlin Group for the design of the temporary clubhouse.
At the January 6, 2004 meeting, the Agency gave the project architect direction with
regards to the remodel of the existing Ahmanson Ranch house for use as a temporary
clubhouse.
C-9 PSE TEMP CLUBHOUSEMOC
The plans, specifications and engineering estimates are now substantially complete
and will be available in the Building and Safety Department for review.
Assuming the City Council approves the authorization to receive bids for the
aforementioned buildings on June 15, 2004, the following represents the anticipated
project schedule:
Approve PS&E and authorize to receive bids
Bid Opening
Award Construction Contract
Construction Period
Accept Improvements
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
June 15, 2004
July 14, 2004
July 20, 2004
August 2004- December
2004
January 2005
1. Approve the Plans, Specifications, and Engineer's Estimate (PS&E) of probable
construction costs and authorize staff to advertise for bids for the temporary
clubhouse for the SilverRock Resort, Project No. 2002-071-1; or
2. Do not approve the Plans, Specifications, and Engineer's Estimate (PS&E) and
do not authorize staff to advertise for bids for the aforementioned building; or
3. Provide staff with alternative direction.
Respectfully submitted,
�l
Tom Hartung
Director of Building and Safety
Approved for submission by:
Thomas P. Genovese, Executive Director
C-9 PSE TEMP CLUBHOUSEAOC
2
T4&f 4 SepQumrw
COUNCIL/RDA MEETING DATE: June 15, 2004
ITEM TITLE: Approval of Contract Change Order Nos. 4
and 5 to Wood Bros., Inc. for SilverRock Resort Hotel
Pads and Additional Work Around a Verizon Telephone
Facility, Project No. 2002-07B, Mass Grading
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve Contract Change Order No. 4 in an amount not to exceed $340,200 to Wood
Bros., Inc. for the SilverRock Resort Hotel pads, Project No. 2002-07B, Mass Grading
and approve Contract Change Order No. 5 in an amount not to exceed $303,700 for
additional work necessary to work around Verizon telephone facilities.
FISCAL IMPLICATIONS:
Change Order No. 4 will complete the hotel pads with the mass grading portion of the
SilverRock Resort project at a cost estimated to be $340,200. To date, staff has
approved $21,100 in contract change orders for this contract. Contract Change Order
No. 5 is for work around a Verizon conduit, which was not relocated in time by the
utility company. The cost for this work is estimated to be $303,700. Pending
contract change orders for changes necessary to accommodate galleries for golf
tournaments total $50,800. Therefore, the total contract amount will increase from
the original contract amount of $2,665,896 to approximately $3,381,700 with all
items included (Attachment 1). The exact quantities for the earthwork will be
determined at the end of the project. The engineer's estimate for this contract was
$3,308,730 when the project was approved for advertisement. The total amount of
these change orders is $715,800. Staff recommends allocating $500,000 of the
$715,800 in change orders from the Golf Course Construction contingency account
and the balance of $215,800 from the General Contingency account in order to pay
for these change orders. The General Contingency account has a balance of
$4,772,714. Staff is also requesting the application of $470,000 toward the General
Contingency account for the maintenance building which would leave a balance of
.$4,086,914, if both requests are approved.
S:\CityMgr\STAFF REPORTS ONLY\C 6 2002-07B.doc
BACKGROUND AND OVERVIEW:
On January 17, 2004, City Council awarded the SilverRock Resort Mass Grading
Project to Wood Bros., Inc. in the amount of $2,665,896, and authorized the City
Manager to negotiate Contract Change Orders up to $100,000 with an aggregate total
of $200,000 in order to expedite construction of this project.
Completion of mass grading is necessary in order for the golf course contractor, Weitz
Golf, to complete construction of the golf course and grass the course by September
15, 2004. This will enable the golf course to be overseeded in time to open for play in
January 2005. In order to complete grassing by this deadline, Weitz Golf must start
grassing the golf course by the end of June 2004.
Staff has worked with Wood Bros., Inc. in order to develop a construction schedule
that stays ahead of Weitz Golf's schedule by working extended hours and Saturdays.
Staff believes Wood Bros., Inc. has cooperated fully with the Agency's goal of opening
Golf Course No. 1 by January 2005 by bringing additional equipment and man power
on site in order to meet this very aggressive schedule.
Two contract change orders are now pending that require the Agency's approval.
Staff requests authority to approve these Contract Change Orders up to the stated
amounts to avoid delays to the contractor while the exact amounts are determined.
The first is Contract Change Order No. 4 in an amount not to exceed $340,200 in
order to complete the hotel pads. Although bid as a lump sum item which included the
hotel pads, the earthwork quantity of 1,999,300 cubic yards appears low by
approximately 350,700 cubic yards. This additional 18% of soil is necessary due to
an underestimate of the amount of shrinkage that would occur from taking the soil
from the existing condition on the east side of the project to the compacted condition
within the golf course envelope on the west side of the project. This is considered a
changed condition warranting a contract change order. Wood Bros., Inc. has agreed to
honor their bid price of $0.97 per cubic yard for the extended quantity. Staff believes
this to be a very competitive price that will not likely be matched if this work is
delayed.
The second contract change order, Contract Change Order No. 5, is for delays and
extra work required in order to avoid a Verizon telephone duct that was not relocated
in time by Verizon. The cost of these delays is estimated to be $303,700. The
Verizon duct contained fiber optic cable as well as a conventional wire that has
recently been relocated, but impacted Wood Bros., Inc.'s work for over 27 days. The
Keith Companies had been coordinating with Verizon since November 2003 to relocate
their facilities. Despite reassurances from Verizon, the utility company was unable to
meet the Agency's schedule. A claim against Verizon for delays to the Agency's
contractor is currently under investigation by the City Attorney.
2
S:\CityMgr\STAFF REPORTS ONLY\C 6 2002-07B.doc
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve Contract Change Order No. 4 in an amount not to exceed $340,000 to
Wood Bros., Inc. for the SilverRock Resort Hotel pads, Project No. 2002-07131
Mass Grading and approve Contract Change Order No. 5 in an amount not to
exceed $303,700 for additional work necessary to work around Verizon
telephone facilities; or
2. Do not approve Contract Change Order No. 4 in an amount not to exceed
$340,200 to Wood Bros., Inc. for the SilverRock Resort Hotel pads, Project No.
2002-07B, Mass Grading and do not approve Contract Change Order No. 5 in
an amount not to exceed $303,700 for additional work necessary to work
around Verizon telephone facilities; or
3. Provide staff with alternative direction.
Respectfully submitted,
T mothytjjjon�4on, P. E.ubIic Ws D ctor/City Engineer
Approved for submission y:
Thomas P. Genovese, Executive Director
Attachment: 1. Contract Change Order Summary
3
ATTACHMENT 1
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WOOD BROS., INC.
CONTRACT CHANGE ORDER SUMMARY
PROJECT NO. 2002-0713, MASS GRADING
ORIGINAL CONTRACT AMOUNT:
APPROVED CONTRACT CHANGE ORDERS
Date # Description
5/13/04 1 Nine (9) days added to contract $0.00
5/13/04 2 Revised grading Hole #7 Lake $7,500.00
5/24/04 3 _ Grading Hole #3 Berm along Avenue 52 $13,600.00
REVISED CONTRACT TOTAL:
PENDING C.C.O.'S:
Description
$ 2,665,896.00
TOTAL = $21,100.00
Hope Classic #4 Tee $6,800.00
Hope Classic #7 Green $39,000.00
Hope Classic #8 Green $5,000.00
Additional Earth Work for Hotel Pad (300,700 cy @ 0.97/cy) $340,200.00
Verizon Estimate "Wood Bros. $303,700.00
$2,686,996.00
TOTAL = $694,700.00
PENDING CONTRACT TOTAL: $3,381,696.00
4
T:\PWDEPT\COUNCIL\2004\06-15-04\C 6 2002-07B attach.doc
COUNCIL/RDA MEETING DATE: June 15, 2004
Approval of a Loan Agreement Between the
La Quinta Redevelopment Agency and the City of
La Quinta for a Loan of Up to $5,800,000, and
Appropriation of $5,800,000 from the La Quinta
Redevelopment Project No. 2 Capital Projects Fund
and $8,720,000 from the Proceeds of the
Supplemental Loan Agreement Between the
La Quinta Financing Authority and the La Quinta
Redevelopment Agency for Acquisition of Certain
Real Property Located at the Northwest Corner of
Dune Palms Road and Avenue 48
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve a loan from the City of La Quinta to the La Quinta Redevelopment Agency, and
appropriate $5,800,000 from the La Quinta Redevelopment Project No. 2 Capital Projects
Fund and $8,720,000 from the proceeds of the Supplemental Loan Agreement between
the La Quinta Financing Authority and the La Quinta Redevelopment Agency for
acquisition of property located at the northwest corner of Dune Palms Road and Avenue
48.
FISCAL IMPLICATIONS:
This transaction will facilitate the acquisition of approximately 27.75 acres of property for
affordable housing and commercial development. Property acquisition costs are
anticipated to total $14,520,000. Approximately 1 1.75 acres will be sold for commercial
development; sale proceeds will be used to repay the City loan.
BACKGROUND AND OVERVIEW:
The La Quinta Redevelopment Agency ("Agency") is purchasing approximately 27.75
acres of property to facilitate the development of affordable housing. Approximately 16
acres may be developed with housing, with the remaining 11.75 acres designated by the
City's General Plan for commercial use. In order to acquire any of the property, the
Agency must purchase the entire parcel. The Agency intends to sell this portion for
commercial development at the prevailing market value.
S:\CityMgr\STAFF REPORTS ONLY\C 21 Hammer RDA Loan.doc
A combination of housing and non -housing revenue will be used to acquire this property.
Proceeds from the Agency/Financing Authority Loan will be used to acquire the housing
portion; however, Project Area No. 2 does not have sufficient uncommitted reserves to
acquire the non -housing segment. The Agency has requested the City loan the Agency
$5,800,000 to fund the non -housing land acquisition costs.
Staff has prepared a Loan Agreement from the City of La Quinta to the Agency
(Attachment 1). The proposed Loan has a repayment date as that of the sale o
commercial property, or the expiration of the Redevelopment Plan of May 1, 2039,
whichever occurs first, and an interest rate of 7%, between the City and the Agency, in
an amount of $5,800,000.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency. Board include:
1. Approve a Loan Agreement from the City of La Quinta to the La 'Quinta
Redevelopment Agency, and appropriate $5,800,000 from the La Quinta
Redevelopment Project No. 2 Capital Projects Fund and $8,720,000 from the
proceeds of the Supplemental Loan Agreement between the La Quinta Financing
Authority and the La Quinta Redevelopment Agency for acquisition of property at
the northwest Corner of Dune Palms Road and Avenue 48; or
2. Do not approve a Loan Agreement from the City of La Quinta to the La Quinta
Redevelopment Agency; or
3. Provide staff with alternative direction.
Respectfully submitted,
YU�I �
John M. Falc ner, Finance Director
Approved for Submission by:
.mod
Thomas P. Genovese, Executive Director
Attachment: 1. Loan Agreement
S:\CityMgr\STAFF REPORTS ONLY\C 21 Hammer RDA Loan.doc
2
ATTACHMENT 1
LOAN AGREEMENT
THIS LOAN AGREEMENT ("Agreement") is made and entered into this day of
2004, by and between the CITY OF LA QUINTA, a charter city and municipal
corporation ("City"), and the LA QUINTA REDEVELOPMENT AGENCY, a public body,
corporate and politic ("Agency").
RECITALS
A. City is a municipal corporation and a charter city of the State of California
organized and existing under the Constitution of the State of California.
B. Agency is a public body, corporate and politic, organized under the California
Community Redevelopment Law (Health & Safety Code § 33000 et seq.).
C. On or about March 1, 2004, Agency entered into an Agreement for Purchase and
Sale and Escrow Instructions (the "Purchase and Sale Agreement") to purchase certain real
property located northwest of the intersection of Avenue 48 and Dune Palms Road in the City of
La Quinta, County of Riverside, State of California (the "Property"), as further set forth in the
Purchase and Sale Agreement.
D. Agency anticipates facilitating the development of approximately sixteen (16)
acres of the Property for use as affordable housing (the "Affordable Housing Property"), and
selling the remaining eleven (11) acres of the Property for commercial uses (the "Commercial
Property"). The Commercial Property is located adjacent to and fronts Highway 111.
E. The Agency's purchase price for the portion of the Property that comprises the
Commercial Property is approximately Five Million Eight Hundred Thousand Dollars
($5,800,000) (the "Commercial Property Purchase Price").
F. The City desires to loan to the Agency, and the Agency desires to borrow from
the City, pursuant to the terms and conditions set forth herein, funds in the amount of the
Commercial Property Purchase Price (the "City Loan"), for purposes of funding the Agency's
acquisition of the Commercial Property.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter
contained, City and Agency agree as follows:
Section 1. City Loan; Interest; Use of Loan Principal.
City hereby loans to Agency the City Loan.. Interest shall accrue on the outstanding
principal amount of the City Loan at the rate of seven percent (7%) per annum. Agency shall use
the City Loan to acquire the Commercial Property.
2095/015610-0047
514139.02 a06/11/04
3
Section 2. Repayment.
The Agency shall repay to the City the City Loan and all accrued interest thereon on the
earlier of (a) thirty (30) days after the Agency sells and conveys the Commercial Property, or (b)
May 1, 2039. The Agency's repayment of the City Loan shall be from the proceeds the Agency
receives from its sale of the Commercial Property.
Section 3. Subordination.
The repayment of the City Loan by Agency shall be junior and subordinate to all Agency
obligations incurred prior to the date of this Agreement.
Section 4. Non -Recourse Obligation.
No officer, official, employee, agent, or representatives of the Agency shall be liable for
any amounts due hereunder, and no judgment or execution thereon entered in any action hereon
shall be personally enforced against any such officer, official, employee, agent, or representative.
Section 5. Entire Agreement; Amendments.
This Agreement shall constitute the entire agreement of the parties. This Agreement may
be amended or modified only by an agreement in writing signed by the parties.
[end — signature page follows]
2095/015610-0047
514139.02 a06/11/04
4
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their authorized representatives, as of the date first above written.
"CITY"
CITY OF LA QUINTA
BY:
Thomas P. Genovese, City Manager
ATTEST:
June S. Greek, City Clerk
APPROVED AS TO FORM:
M. Katherine Jenson, City Attorney
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY
By:
Thomas P. Genovese, Executive Director
ATTEST:
June S. Greek, Secretary
APPROVED AS TO FORM:
M. Katherine Jenson, Agency Counsel
2095/015610-0047
514139.02 a06/11/04
1A
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`5
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OF'I'19
COUNCIURDA MEETING DATE: June 15, 2004 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Approval to Award a Contract to Davis/Reed CONSENT CALENDAR:
Construction Inc. to Construct the SilverRock Resort
Maintenance Building, Comfort Stations and Pump STUDY SESSION:
House, Project No. 2002-7D
RECOMMENDATION:
PUBLIC HEARING:
Award the contract to Davis/Reed Construction Inc. in the amount of $1,920,000 (not
deducting Alternates 1,3,4,5 or 6 and not adding Alternate 2) for the maintenance building,
comfort stations and pump house for the SilverRock Resort, Project No. 2002-07D.
FISCAL IMPLICATIONS:
The SilverRock Resort improvements are included within the Fiscal Year 2003/2004
Capital Improvement Program (CIP). Based upon the Engineer's estimate of probable
construction costs in the amount of $1,450,000, the following represents the approved
project budget:
Activity Budget
Construction $174501000
The following bids were received on June 9, 2004 for the project:
Davis/Reed Construction Inc. $119201000
Commercial Diversified $211001000
PW Construction $2,935,000
As shown, the lowest responsive bidder was $470,000 over the engineer's estimate. Staff
is recommending that an additional $470.000 be utilized from the available $4,772,714 in
the project contingency fund for the construction, resulting in the following budget:
Activity Budget
Construction $119207000
SACITYMMSTAFF REPORTS ONLY\C-10 MAINT BLD.DOC
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 18, 2003 the Redevelopment Agency approved a contract with the
Dahlin Group for the design of the maintenance building, comfort stations and pump
house for the SilverRock Resort project.
At the February 17, 2004 Study Session, the Agency gave the project architect
direction with regards to the preferred architectural themes for the future buildings at
the Resort.
On April 7, 2004, the maintenance building was approved by the Architecture and
Landscape Review Committee.
On April 13, 2004, the maintenance building was approved by the Planning
Commission.
Assuming the Agency awards the contract for the aforementioned buildings on June
15, 2004, the following represents the anticipated project schedule:
Award Construction Contract June 15, 2004
Construction Period July 2004-October 2004
Accept Improvements November 2004
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Award the contract to Davis/Reed Construction Inc. in the amount of $1,920,000
(not deducting Alternates 1,3,4,5 or 6 and not adding Alternate 2), for the
maintenance building, comfort stations and pump house for the SilverRock Resort,
Project No. 2002-07D or
2. Reject all bids and do not award a contract for construction of Project 2002-
07 D; or
3. Provide staff with alternative direction.
S:\CITYMGR\STAFF REPORTS ONLY\C-10 MAINT BLD.DOC
2
Respectfully submitted,
Tom Hartung
Director of Building and Safety
Approved for submission by:
Thomas P. Genovese, Executive Director
S:\CITYMGR\STAFF REPORTS ONLY\C-10 MAINT BLD.DOC
3
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OF
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: June 15, 2004
BUSINESS. SESSION:
ITEMTITLE: Consideration of a Resolution Adopting the
Investment Policy of the Redevelopment Agency CONSENT CALENDAR:
for Fiscal Year 2004/2005 STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt a Resolution of the Redevelopment Agency approving the Investment Policy of
the City of La Quinta for Fiscal Year 2004/2005.
SEE CITY COUNCIL STAFF REPORT
RESOLUTION NO. RA 2004-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA APPROVING AND
ADOPTING THE AMENDED INVESTMENT POLICY FOR
FISCAL YEAR 2004/2005
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS, the primary objectives, in order of priority, of the City of La
Quinta's investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio is
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City
of La Quinta to adopt the 2004/2005 Fiscal Year Investment Policy (Exhibit
A/Attachment 2) .
2
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this day of
2004 by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, Secretary
City of La Quinta, California
APPROVED AS TO FORM:
KATHY JENSON, City Attorney
City of La Quinta, California
3
IKnR9N7177
9w5w
OF 'T
COUNCIL/RDA MEETING DATE: June 15, 2004 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Consideration of Brand Promise for CONSENT CALENDAR:
SilverRock Resort
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
As deemed appropriate by the Redevelopment Agency Board.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On February 17, 2004, the Redevelopment Agency considered an item related to the
branding efforts for SilverRock Resort. McMurry, the marketing firm for SilverRock,
retained the expertise of Mr. Duane Knapp, author of The BrandMindset, to lead the
brand development effort. Stephen Williams of McMurry presented the Agency with
Mr. Knapp's five -step plan (Attachment 1), indicating that the first four steps would be
employed to develop a genuine and unique brand for SilverRock Resort.
On April 6, 2004, the Agency considered an item on the initial branding process,
which was to start with Brand Assessment as the first step (Attachment 2). The
Agency was advised the initial effort would involve conducting creative sessions with
key stakeholders of SilverRock Resort. The goal of this initial effort was to develop a
Brand Promise for SilverRock Resort (Attachment 3) and articulate it in writing utilizing
the thoughts and sentiments gathered at these meetings.
As Agency members are aware, two creative sessions were held. The first session
took place April 21, 2004, and the second session took place May 17, 2004 (minutes
for both meetings are provided as Attachment 4). Agency Members, staff, and key
consultants such as GMA, Landmark, and McMurry, attended the sessions which were
led by Mr. Duane Knapp. As a result of the discussions that transpired during those
meetings and the surveys that were completed and analyzed, McMurry is submitting
for Agency consideration the original brand promise (as derived during the second
meeting) and three brand promise alternatives (Attachment 5). Articulation and
approval of a Brand Promise for SilverRock Resort will allow McMurry and others
marketing the project to begin sending a consistent message and begin action steps to
deliver upon the promise.
A representative from McMurry will be available to guide the Agency through the
Brand Promise alternatives, review the next steps of the branding process, and answer
any questions the Agency may have.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
1. Approve a Brand Promise for SilverRock Resort; or
2. Do not approve a Brand Promise for SilverRock Resort; or
3. Provide staff with alternative direction.
Respectfully submitted,
•
Mar Weiss, Assistant City Manager
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. SilverRock Ranch Brand Development Process
2. SilverRock Resort Brand Development Process, Initial Phase
3. Developing a BrandPromise° Commitment for SilverRock
Resort
4. Minutes of April 21 and May 17, 2004 Branding Meeting
5. Original Brand Promise and Refined Brand Promise
(Alternatives)
2
Attachment 1
SilverRock Ranch Brand Development Process
McMurry, Inc. has retained Duane Knapp and his company,Brand Strategy, Inc to
facilitate the development of the SilverRock Ranch BrandPromise(V Commitment
(Promise). Duane will employ the first four steps of his tried and tested five -step plan to
develop a genuine, unique SilverRock Ranch brand. The fifth step, Brand Advantage
cannot be facilitated until SilverRock Ranch is an ongoing, viable entity serving real
customers. Step five is therefore not within the scope of this initial engagement.
The basic steps are as follows:
1.) Brand Assessment
In this initial phase, Duane and McMurry will conduct "inspirational" research
meetings with key stakeholders including but not limited to representatives from the
La Quinta RDA, GMA Palmer Course Design, Landmark...
This constituent committee, under Duane's tutelage will develop a consensus
regarding the SilverRock Ranch brand position. Ideally, the constituent "interviews"
and discussions will be held in a collective, live workshop. If,critical constituents are
not available for the group meet' s), their input will be sought through telephonic
interviews. A, review of the brand experience as delivered by locally, competitive
properties will be included.
2.) Brand Promise
What should the SilverRock Ranch's Promise be?
A distillation of the collective thoughts and discussions derived from the first Brand
Assessment meeting will be articulated in a written definition of the Promise from the
customer's perspective. The Promise is the foundation from which the brand
principals are developed.
3.) Brand Blueprint
How will the brand be communicated to the myriad SilverRock Ranch audiences?
Duane will advise McMurry in developing a blueprint to chartthe path to effectively
create, design and communicate the intended brand perception. It will signal what
SilverRock Ranch will deliver in its golf course product, services, attitude and
internal culture.
- 4.) Brand Culturalizution
In essence, Duane will identify how every SilverRock Ranch employee must
understand and adopt the Brand Promise. Each and every SilverRock Ranch
employee and associate must understand. and adopt the Promise and the Promise must
be an integral part of the SilverRock Ranch culture and must drive every related
decision. Culturalization will occur as a result of consistent, persistent and passionate
training of all SilverRock Ranch staff and associates. To this end, Landmark plays a
3
critical role as they are the primary on -site management. As a key constituent
throughout the branding process, Landmark will be an integral and essential brand
partner.
How long will this entirebranding process take?
The four steps of the process as identified herein will take approximately two months
and will .require at least two constituent meetings and numerous telephonic
interviews. As soon as the list of participatory constituents is agreed to the first
Brand Assessment meeting can. be scheduled and the process evolves from there.
It should be understood that the fourth step, Brand Culturalization is ostensibly never
completed as training must be continual, not only to ensure effective Brand
Culturalization amongst new hires but to ensure that standards are maintained across
all existing staff.
Next Steps?
In co-operation with the La Quinta RDA, McMurry and Duane Knapp we will
identify the key constituent entities and who specifically within those entities should
serve as a valued representative on the branding committee.
4
Attachment 2
SilverRock Resort Brand Development Process, Initial Phase
As per the previous document on this subject, the development of the SilverRock Resort
Brand Promise will follow the first four steps of Duane Knapp's Brand Strategy Inc. tried
and tested five step process.
The first and initial Brand Assessment phase will be conducted in a live session held in
the Session Room at La Quinta City Hall on Friday, April 16, 2004.
A suggested list of key stakeholders to be included in this initial assessment is detailed
below -single or multiple: representatives from these entities are acceptable. In this initial
phase, Duane Knapp will 'lead the group by asking a series of inspirational, thought
provoking questionsspecifically designed to`illicit identification of the core brand
position as deemed critical by each participating stakeholder. Through continued
discussion and debate, what initially will be a`varied and possibly conflicting articulation
of the desired brand promise will be distilled to a concentrated and unilaterally agreed
upon consensus.
Although it is preferable that all constituents attend a "live". session, if this is not
possible, the session can be augmented by telephonic interviews with non -attendees.
The distillation or collective thoughts derived from phase one of the process will be made
available by Duane Knapp and will form the Brand Promise: as detailed in phase two of
the process.
Preliminary list of SilverRock Resort branding constituents and
stakeholders:
La Quinta Redevelopment Agency/City Council
City of La Quinta representative(s)
SRR Project Management (including Mark Weiss and Roy Stephenson)
GMA International
Landmark
McMurry, Inc.
Brand Strategy
Palmer Course Design
5
Attachment 3
. i 4 10
Thinking like a brand requires a different
BrandPromise Methodology
mindset, perspective and approach than just
The promise should serve as the "guiding
business as usual. The BrandPromiseg
star" for everything SilverRock Resort
Commitment is the key to this different
becomes. Its rim se is to
primary P
approach and is absolutely fundamental to
communicate clearly what the brand stands.
creating a Genuine Brand Image for
for to every stakeholder (guests, employees,
SilverRock Resort.
agents, representatives, etc.).
A BrandPromise (promise) communicates
Developing a BrandPromiseg)
three inherent attributes:
Commitment
A something will be done
A there is an expressed assurance
BrandStrategy, Inc.. will facilitate two
A a perception of distinctiveness and
BrandPromise creative sessions which will
excellence
focus on answering three primary questions
A promise is written to define the intended
in order to develop an effective promise:
functional and emotional benefits from the
A What is our brand experience?
A` What differentiates our products and
customer's point of view after experiencing
services from competitors?.
SilverRock Resort. Because it incorporates
What is `superior about the value we
the customer's viewpoint, a promise is
offer our guests .
distinctly different from a .business's
mission or vision statement. The promise
Guests will develop their perception of value
represents SilverRock Resort's commitment
through a subjective feeling as a result of
to its guests and how it wants them to feel.
comparing the brand's, products and service
offerings with those of its competitorsbased
Creating a successful marketing strategy for
on his or her own needs, preferences, buying
SilverRock requiresa' discipline that is
behavior, and characteristics. Thus, guests'
focused on a BrandPromise Commitment
perceptions of value constantly change.
that will create a distinctive and valued
Consequently, SilverRock's ability to
perception that results in "preference" or
deliver"exceptional experiences" for its
"insistence" that is much more desirable
guests is deeply rooted in the promise.
than other competing golf developments.
Genuine Brands make a promise and they
deliver on that promise consistently, eagerly-,
and at the guest's convenience.
BrandWouisere. BrandPromise*, and BrandSlrategyTM are trademarks of BrandStrategy, Inc. All other trademarks are the prope►ty.of their respective
companies. Additionally, other easily recognizable brands and brand Wines are used for illustrative purposes and are not associated with BrandStJategy, Inc.
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Attachment 4
LA QUINTA REDEVELOPMENT AGENCY
SPECIAL MEETING
MINUTES
APRIL 21, 2004
A special meeting of the La Quinta Redevelopment Agency was called to
order by Chairperson Henderson at 3:00 p.m.
PRESENT: Board Members Adolph, Osborne, Perkins, Sniff,
Chairperson Henderson
ABSENT: None
Chairperson Henderson led the audience in the Pledge of Allegiance.
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
STUDY SESSION
1. DISCUSSION REGARDING INITIAL BRANDING PROGRAM FOR
SILVERROCK RESORT.
Duane Knapp, of Brand Strategy, Inc., gave a brief overview of the
brand strategy (promise) process wherein he explained the "promise"
is how you want people to feel. He proceeded to ask questions such
as, "What is our experience and how will SilverRock be distinctive?"
and solicited comments from the participants. (Chairperson
Henderson, Agency Members Adolph, Osborne, Perkins, and Sniff,
Executive Director Genovese, Assistant Executive Director Weiss,
Community Development Director Herman, Redevelopment Consultant
Spevacek, Gil Martinez of GMA International, Judy Vossler and Ed
Schiller of Landmark Golf Management, and Steven Williams and
Bruce Nilsson of McMurry, Inc.)
Comments received from the participants included: first-class resort;
first-class golf; great place; memorable experience; want people to
come back; want people to feel special; view of mountains will touch
people; magical experience; historical site (waterline mark from being
under water hundreds of years ago and seasonal home for Indians
who were very spiritual and mystical); tie the rock in the SilverRock
7
Redevelopment Agency Minutes 2 April 21, 2004
name to the mountains; and use a silver theme as opposed to silver
"rock."
There was also some discussion as to what makes the golf course
unique and comments included: Arnold Palmer design; need one or
two memorable golf holes to draw people back; it is a long course and
a tournament course without gimmicks; it's a course built by the
people and for the people; the golf course project would benefit from a
unique or special feature but you can't remove the rocks out of the
mountain area and it's very expensive to get them elsewhere; must
maintain a 25-foot buffer zone at toe of slope; and it's too early to
know which holes will be best.
Closing comments included: each piece of the project is the most
important piece; other important components besides golf; experience
is different for each individual; need to go over master plan again; first
impressions at entrances give a sense of arrival; and need to expand
perspectives as to what the next generation will want.
Mr. Knapp requested research on the following issues: when was the
area under water; what did the Indians do for recreation; and what
elements of the course will make it distinctive and unique. He
distributed a Brand Blueprint Checklist and a questionnaire, which he
requested be returned by April 26th. He indicated that he and
representatives from McMurry, Inc. will use the responses to draft
some brand promises to bring back at a second meeting in
approximately three weeks.
CHAIR AND BOARD MEMBERS' ITEMS - None
ADJOURNMENT
There being no further business, it was moved by Board Members
Adolph/Osborne to adjourn. Motion carried unanimously.
Respectfully submitted,
JUNE S. GREEK, Agency Secretary
City of La Quinta, California
LA QUINTA REDEVELOPMENT AGENCY
SPECIAL MEETING
MINUTES
MAY 17, 2004
A special meeting of the La Quinta Redevelopment Agency was called to
order by Chairperson Henderson at 9:12 a.m. at the La Quinta Resort, Frank
Capra Room "C".
PRESENT: Board Members Adolph, Osborne; Sniff, Chairperson Henderson
ABSENT: Board Member Perkins
Also present were: RDA Assistant Executive Director Weiss, Redevelopment
Consultant Frank Spevacek, Gil Martinez of GMA International, Judy Vossler
and Ernie Vossler of Landmark Golf Management, Duane Knapp of Brand
Strategy, Inc., and Steven Williams and Bruce Nilsson of McMurry, Inc.
PLEDGE OF ALLEGIANCE
Chairperson Henderson led the participants in the Flag Salute.
PUBLIC COMMENT - None
CLOSED SESSION - None
CONFIRMATION OF AGENDA - Confirmed
APPROVAL OF MINUTES - None
STUDY SESSION
1. DISCUSSION REGARDING BRANDING PROGRAM FOR SILVERROCK
RESORT.
Chairperson Henderson turned the meeting over to facilitator Duane
Knapp who asked Gil Martinez, of GMA International to discuss some
elements of the property and the history of the property that led to the
development of the master plan for SilverRock Resort. Mr. Martinez
gave a brief overview of points of history of the site that were taken
into consideration during the development process of the site master
plan.
�9
Redevelopment Agency Minutes 2 May 17, 2004
He also suggested some ideas to draw upon that history to create
special and unique attractions for the resort such as utilizing the lake
for canoe rides or creating a lazar show or holographs on the
mountain. He felt the creation of a "story line" might be of help in the
branding process and suggested concentrating on the uniqueness of
the site.
Duane Knapp outlined the goals of the session as: 1) to review the
promise; 2) to determine what the tenants of the promise are; 3) to
develop the promise and finally to reach some agreement on at least
75 % of the text of the promise.
In response to Agency Member Sniff he stated the promise should
state what the City wants the guest to feel or experience when they
visit SilverRock.
Mr. Knapp showed some "mentor" brands such as the Ritz Carlton
which is "We are ladies and gentlemen serving ladies and gentlemen."
Agency Member Osborne asked if the promise will be in place even
when the Resort is still in its "temporary phase" i.e. still in the
temporary clubhouse and with only one golf course completed. Mr.
Knapp's response was tactics will develop over time but the delivery
of the promise must take place at every phase.
He requested the participants think about what elements they would
like to see included in the promise.
Chairperson Henderson responded "lasting guest impression"; Mr.
Spevecek responded "non-corporate/not a chain"; Mr. Martinez said
"describe what kind of experience you want to have". Agency
Member Adolph said he wants it to convey uniqueness; Agency
Member Sniff said it should convey "elegant/simplicity, which includes
emotional benefit, gratification/pleasure." Assistant Agency Director
Weiss responded "world class standards."
Agency Member Sniff suggested some slogans such as "'play the
SilverRock way,' 'take the SilverRock challenge' and 'enjoy the
SilverRock magic."'
Mr. Knapp distributed a handout containing a prototype brand story
and brand promise. Agency Sniff expressed dissatisfaction with the
10
Redevelopment Agency Minutes 3 May 17, 2004
reference to hot or boiling water, stating the statement would more
accurately refer to Palm Springs or Desert Hot Springs, not La Quinta.
Mr. Knapp then asked the participants to consider a prototype brand
promise which read, "Enjoy the mystique of SilverRock; the crown
jewel of La Quinta's golf legacy. The breathtaking beauty of the
Santa Rosa Mountains frame our commitment for an exceptional
SilverRock experience for every guest. Our Promise: Refresh, Relax
and Enjoy!
Judy Vossler suggested substituting the word "discover" for "enjoy"
in the first sentence. There was general consensus that would be a
good change.
Agency Member Sniff felt the word golf should be removed and the
first sentence read La Quinta's legacy. Agency Member Osborne
stated the project is about golf as well as a resort and it is important
to keep that in the promise.
Chairperson Henderson felt it is very important to keep in mind that
the promise is about creating an attitude.
Judy Vossler stated she prefers legacy as shown on the handout to
the word paradise which was shown on the graphic. Ernie Vossler
suggested the word "every" guest be changed to "each" guest.
Bruce Nilsson of McMurry commented the promise seems to be
generally what the Agency was looking for and McMurry, Inc can clear
up any wording challenges and present it to the Agency.
Mr. Knapp agreed and felt his portion of the branding process was
completed. He advised at this point someone needs to take charge of
establishing the action steps to deliver on the promise.
Assistant Executive. Director Weiss felt this can be worked on by
Agency staff in the context of their present duties.
Chairperson Henderson asked it there were any additional items from
the members of the Agency.
CHAIR AND BOARD MEMBERS' ITEMS — None
11
Redevelopment Agency Minutes 4 May 17, 2004
ADJOURNMENT
There being no further business, it was moved by Agency Members
Sniff/Osborne to adjourn. Motion carried with Agency Member Perkins
absent.
Respectfully submitted,
JUNE S. GREEK, City Clerk/
Redevelopment Agency Secretary
City of La Quinta, California
12
Attachment 5
Original Brand Promise
Discover the mystique of SilverRock Resort. The crown jewel of La Quinta's golf
legacy. The breathtaking beauty of the Santa Rosa Mountains frames our
commitment for an exceptional SilverRock experience for every guest.
Our promise: Refresh, Relax, Enjoy.
Refined Brand Promise (Alternatives)
Brand Promise 1
With a retreat to SilverRock Resort, guests will be afforded every opportunity to
relax and rejuvenate in a manner most enjoyable to them. Surrounded by the
majestic Santa Rosa Mountains, at the crown jewel of La Quinta's golf legacy,
guests will be renewed and their experiences long remembered.
Our promise: Peace of mind, body, and soul.
Brand Promise 2
At SilverRock Resort, guests from all walks of life have the privilege of enjoying
all the pleasures that come with staying at the crown jewel of La Quinta's golf
legacy. Rising from the base of the majestic Santa Rosa Mountains, SilverRock
Resort affords every guest the very finest in all things. From world -class golf to a
world -class spa. From designer fashions to five-star dining. All the best is here.
Our promise: Exceptional In All, For All, Always.
Brand Promise 3
Few places in the world can compare to SilverRock Resort as a setting for
renewal and relaxation. Rising up to the west are the majestic Santa Rosa
Mountains, rich in both history and legend. Beyond her gates, the rugged yet
sublime beauty of La Quinta and the Coachella Valley. Within her gates, all the
amenities and opportunities for indulgence one deserves at a truly world -class
resort.
Our promise: Always the perfect host to renewal and relaxation.
13
THE BRAND PROMISE
>A91t rrd Discover the mystique of the SilverRock Resort. The crown jewel of
La Quinta and its golf legacy. The breathtaking beauty of the Santa Rosa
Mountain frames our commitment for an exceptional
SiiverRock experience fbreeely-g�
The SlIverRock promise:
Refreshing - Relaxing - Enjoyable - Unique - Special
Discover the mystique of la Quinta's SilverRock Resort. Rising from
the base of the majestic Santa Rosa Mountains SilverRock will provide
you the opportunity to savor your leisure time to the nth degree. Golf
at it's finest, relaxation at it's best, excitement at it's optimum an
exceptional SilverRock experience for each guest.
Our promise; To deliver an exceptional experience