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2004 08 17 RDA Minutes LA QUINT A REDEVELOPMENT AGENCY I MINUTES I AUGUST 17, 2004 . A regular meeting of the La Quinta Redevelopment Agency was called to order by Chairperson Henderson. PRESENT: Board Members Adolph, Osborne, Perkins, Sniff, Chairperson Henderson ABSENT: None PUBLIC COMMENT - None CLOSED SESSION 1. Conference with Agency,'s real property negotiator, Mark Weiss, pursuant to Government Code Sectiøn 54956.8 concerning potential terms and conditions of acquisition and/or disposition of real property located southeast of the Miles Avenue and Washington Street intersection and north of the Whitewater Channel (APNs 604-040- 012/013 and 604-040-022/023. Property Owner/Negotiator: Richard r Oliphant, CP Development of La Quinta LLC. ¡ I \ ¡ ; 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 a portion of 525:t acres located at the southwest corner of Avenue 52 and Jefferson Street. Property Owner/Negotiator:Robert Schumacher. 3. Conference with legal counsel regarding pending' litigation, Martinez V. City of La Quinta et. al., U. S. District Court, Central District of California Court Case No. CV 04-06373 DT (RZx), pursuant to Government Code Section 54956 .9(a). Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. 3:00 P.M. ,...-- ; ¡ PUBLIC COMMENT - None , , . Redevelopment Agency Minutes 2 August 1 7, 2004 CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES MOTION - It was moved by Board Members Adolph/Sniff to approve the Redevelopment Agency Minutes of July 20, 2004 as submitted. Motion carried unanimously. MOTION - It was moved by Board Members Sniff/Adolph to approve the Redevelopment Agency Minutes of August 3, 2004 as submitted. Motion carried with Board Member Osborne ABSTAINING. CONSENT CALENDAR Board Member Osborne requested Consent Item No.9 be moved to Business Item No.3. 1. APPROVAL OF DEMAND REGISTER DATED AUGUST 17, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED JUNE 30,2004. 3. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED JUNE 20, 2004. 4. APPROVAL OF A CONTRACT AMENDMENT WITH PACIFIC ADVANCED CIVIL ENGINEERING (PACE) FOR ELECTRICAL ENGINEERING SERVICES FOR SilverRock RESORT. 5. APPROVAL OF A CONTRACT AMENDMENT WITH HEINBUCH GOLF, LLC FOR CONSTRUCTION MANAGEMENT SERVICES FOR SilverRock RESORT. 6. APPROVAL OF A CONTRACT AMENDMENT WITH THE KEITH COMPANIES FOR ELECTRICAL ENGINEERING SERVICES FOR SilverRock RESORT. 7. APPROVAL OF A CONTRACT AMENDMENT WITH MCKENNA ET AL FOR ARCHAEOLOGICAL MONITORING SERVICES FOR SilverRock RESORT. ~ ---- ~ ---- - -~ - - --.- Redevelopment Agency Minutes 3 August 17, 2004 r 8. APPROVAL OF PROCEDURES TO' SELL OR DISPOSE OF THE ¡ : COACHES ACQUIRED BY THE REDEVELOPMENT AGENCY AT THE . VISTA DUNE MOBILE HOME PARK LOCATED AT 78-990 MILES AVENUE. 9. SEE BUSINESS ITEM NO.9. MOTION - It was moved by Board Members Sniff/Adolph to approve the Consent Cålendar as recommended and amended with the exception of item No.9. Motion carried unanimously. BUSINESS SESSION 1 . CONSIDERATION TO APPROVE A CONTRACT CHANGE ORDER WITH WEITZ GOLF FOR COMPLETING REMAINING IMPROVEMENTS FOR SilverRock RESORT GOLF COURSE NO.1, PROJECT NO. 2002-07C. ' Public Works Director Jonasson presented the staff report. ! Development Coordinator Stephenson referenced the potential for ¡ additional savings of appròximately . $1 million in Phase II due to a . significant amount of water and sewer improvements being installed during Phase I. He noted the contingency of $1.6 million in Phase II has also not been used. Board' Member Osborne asked why the structure costs are approximately $2 million more than the budgeted amount. Mr. Jonasson explained vertical construction costs have increased tremendously over the last six months. Mr. Stephenson noted the budget estimate was not prepared by staff, and he isn't sure it included a specific square footage for the maintenance building or any design concept for the comfort stations. Other reasons for the increase are the aggressive construction schedule and a shortage of some materials. In response to Board Member Osborne, Mr. Jonasson stated sod costs approximately $15,000 an acre, and although the contract was bid at -- 20 acres, more will most likely be needed to complete the grassing in time. Redevelopment Agency Minutes 4 August 17, 2004 In response to Board Member Osborne, Mr. Weiss stated the Bob Hope Chrysler Classic has indicated they are not prepared to contribute toward the electrical improvements for the leader boards but he noted these improvements will set the course up for other tournament use. He added the Classic's request for infrastructure has been pared back from their original request. In response to Board Member Osborne, Mr. Jonasson stated the $75,000 estimate for bridge crossings is for a canal crossing at Jefferson Street as part of the perimeter improvements. Board Member Sniff voiced concern about the total of the change orders, and asked if this will complete the project without further change orders. Mr. Jonasson stated he believes this will complete the first golf course. He noted contract change orders of slightly more than 10% of the contract amount is not unheard of on a project with such an aggressive schedule. He further noted use of the contingency amount is largely due to bids coming in higher than the budgeted amount. Mr. Weiss pointed out some of the components have just started construction and could have change orders. Board Member Sniff asked if the remaining contingency will be sufficient to complete the project. Mr. Weiss responded that somewhat depends on the add alternates included In the perimeter landscaping and fencing contract on September 7th. If there .is a shortage in the contingency amount, there is potential for using AB 939 funds for fencing materials, and tapping into Phase II funding for any work completed during Phase I. Board Member Sniff expressed concern about delaying Phase II if some of that funding is used. "-<-. Mr. Weiss advised staff needs to know if the Agency prefers not doing some of the work. He noted the entry improvements are approximately $1 million but he doesn't feel those type of decisions are reflective of increases in bids or market factors but rather policy decisions made by the Agency. Board Member Adolph asked if dirt will have to be imported along Jefferson Street for the second golf course. - -- ----~ --~---- ~~ ---~ --~ . ---- -- Redevelopment Agency Minutes 5 August 1 7, 2004 r Mr. Jonasson stated he isn't sure but noted it might be beneficial to I ! have the holes close to Jefferson Street a little lower. ¡, Board Member Adolph stated he understands the first two phases overlap but noted if dirt has to be imported for Phase III because it was used in Phase I, that cost has not been budgeted. Mr. Stephenson noted a lot of the dirt along Jefferson Street was used to build the hotel pad. He doesn't believe it will be necessary to import dirt but there have been offers of dirt disposed from other sites. Board Member Adolph noted he has cautioned about extras from the beginning, and said it continues to be important over the next two to four years because of rising inflation. , He stated he understands the need to provide electrical for leader boards at the 9th and 18th holes but feels the Classic should provide generators if they want more than that. He asked if extra costs are anticipated for the driving range and if shade structures on the golf courses are still a c9nsideration. r-- Mr. Jonasson responded no extra costs are anticipated for the driving ¡ range. . Mr. Stephenson stated the suggestion for shade structures is still being look d at. Board Me ber Perkins stated he believes some contractors think cities have "dee pockets," and encouraged staff to keep the change orders down. Chairperso Henderson noted the prototypical street and Civic Center Campus p ojects were over budget because the Council wanted to add things to ake the projects better, and she feels the same thing has happened ere. She also feels there are some legitimate reasons for v the chang orders, and that it doesn't necess'arily mean contractors are taking advantage of the City. She noted there may not be anything I ft in the contingency account at the end of the project but she believ s the Agency will be happy with the results. Board Me ber Perkins agreed the Agency has to share part of the ~ blame for the costs. . , f f , I . Redevelopment Agency Minutes 6 August 17, 2004 Mr. Jonasson stated he feels the City has been fortunate in having Wood Brothers and Weitz Golf as its two primary contractors, and that they have looked out for the City's interest. He noted $319,000 of the $700,000 in change orders for Wood Brothers was due to a claim by V erizon. Mr. Stephenson noted the amount includes increases in cost to the original bid price because of design and is not all due to change orders. He further noted the golf course alone was approximately $3 million over the estimate and that came out of the contingency. MOTION - It was moved by Board Members Perkins/Adolph to approve a Contract Change order with Weitz Golf in the amount of $1 32,471 for electrical improvements for the Bob Hope Chrysler Classic, and authorize the Executive Director to approve Contract Change Orders in the aggregate amount of $1,300,000 for completing Golf Course No. 1 at SilverRock Resort, Project No. 2002-07C. Board Member Sniff indicated he would support the motion because it's essential for the project to be completed at an early date and start bringing in revenue. He doesn't feel the Agency should take the blame for the changes, and doesn't want to see any more change orders with the small amount that is left. Board Member Adolph agreed it's important to keep the cost down but doesn't want to give up quality. Board Member Osborne referenced the need to review Phase II and III budgets so as not to be surprised. Motion carried unanimously. 3. CONSIDERATION OF THE PLANS, SPECIFICATIONS, AND ENGINEER'S ESTIMATE AND AUTHORIZATION TO ADVERTISE FOR BID FOR THE SilverRock RESORT MISCELLANEOUS PARKING LOT IMPROVEMENTS, PROJECT NO. 2002-071. Public Works Director Jonasson presented the staff report. In response to Board Member Osborne, Mr. Jonasson confirmed the $ 2.6 million allocated for the' maintenance facility, temporary clubhouse, and comfort stations was in the original budget. . ;,." ~--'-'. '" . Redevelopment Agency Minutes 7 August 1 7, 2004 Development Coordinator Stephenson noted the site improvements r and buildings were lumped together in the $2.6 million, and this is part ¡ of the vertical construction that was off almost 100%. , ¡. MOTION - It was moved by Board Member Osborne/Sniff to approve the plans, specifications, and engineer's estimate, and authorize staff to advertise the bid of the SilverRock Resort Miscellaneous Parking Lot Improvements, Project No. 2002-071. Motion carried unanimously. 2. CONSIDERATION OF MARKETING AND COMMUNICATIONS PLAN FOR SilverRock RESORT. Assistant Executive Director Weiss presented the staff report. Bruce Nilsson and Stephen Williams, of McMurry, Inc., reviewed the proposed Marketing and Communications Plan, including the brand promise, and pre-opening, grand opening, and post opening advertising strategies. Board Member Sniff remarked he feels the brand promise is less than i adequate. ¡ , . Chairperson Henderson noted the language is what the majority of the Agency agreed to at the last study session. Board Member Osborne stated he isn't too excited about "Exceptional In All, For All, Always" but the rest is fine. Board Member Adolph agreed but noted this is not going to make or break the project. He feels the brand promise should be simple and concise and this isn't but he also believes people will look at what the project is and what it is going to cost. Chairperson Henderson pointed out the brand promise is not part of the advertising campaign. Board Member Perkins commented on the need to let people know where La Quinta is located in the advertising. Chairperson Henderson suggested establishing a single presentation ,...-- for mailings so people will recognize it being from SilverRock and not ¡ "throw-away" mail. Redevelopment Agency Minutes 8 August 17, 2004 Board Member Adolph agreed, and suggested having something distinctive on an envelope. Chairperson Henderson noted the City boundaries are different from what is shown. Mr. Nilsson stated the direct mailings will be sent to specific zip codes to target golfers. In response to Board Member Osborne, Mr. Nilsson stated the marketing budget is approximately $200,000. Board Member Sniff stated he feels it's difficult to target an audience with direct mail. He suggested using some of the money for TV commercials during the month of January would be more effective. Judy Vossler, of Landmark Golf Management, noted their budget includes marketing funds, and some of it will be used for newspaper, radio, and TV. She added the two marketing plans will dovetail with each other. Board Member Sniff questioned the effectiveness of radio advertising, and asked about the total budget amount. Ms. Vossler stated their experience has shown radio to be very productive in the golf market. As for the budget, she didn't know the marketing amount In landmark's budget. Mr. Williams stated the two companies are working together to make sure their marketing efforts are not duplicated. Board Member Sniff inquired about the number of billboards to be used, the cost, and for what period of time. Mr. Nilsson stated they are currently looking at having one billboard in each direction on Interstate 10 for a period of six months. The cost is $3,000 for the media, plus construction costs. Board Member Sniff questioned if having only one billboard in each direction is sufficient coverage. Mr. Williams stated the billboard company packages begin with two billboards and the rest is negotiable. Redevelopment Agency Minutes 9 August 1 7, 2004 Board Member Adolph noted eye-catching billboards are good ¡ advertising if they are in good locations. I ¡ , Mr. Nilsson noted they can negotiate for more billboards during the next step of the analysis. MOTION - It was moved by Board Members Perkins/Osborne to approve a Marketing and Communications Plan for SilverRock Resort, including articulation of a brand promise. Motion carried with Board Member Sniff voting NO. STUDY SESSION - None CHAIR AND BOARD MEMBERS' ITEMS - None The Redevelopment Agency recessed to and until 7:00 p.m. The Redevelopment Agency reconvened. - ¡ t ~ PUBLIC HEARINGS - None The Redevelopment Agency recessed to Closed Session as delineated on Page 1. The Redevelopment Agency meeting reconvened with no decisions being made in Closed Session which require reporting pursuant to Section 54957.1 of the Government Code (Brown Act). ADJOURNMENT There being no further business, it was moved by Board Members Adolph/Osborne to adjourn to September 7, 2004. Motion carried unanimously. Respectfully submitted, r- ~-Ø. , 'JUNE S. GREEK, Secretary , ¡ City of La Quinta, California