2007 04 17 RDA Minutes
LA GUINTA REDEVELOPMENT AGENCY
MINUTES
APRIL 17, 2007
A regular mEleting of the La Guinta Redevelopment Agency was called to
order by Chairman Osborne.
PRESENT: Agency Members Adolph, Henderson, Kirk, Sniff,
Chairman Osborne
ABSENT: INone
PUBLIC COMMENT - None
CLOSED SESSION
Agency Counsel Jenson announced Thomas P. Genovese will serve as
property negotiator for the closed session items in the absence of Douglas R.
Evans.
1. Conference with the Agency's real property negotiator. Douglas R.
Evans. pursuant to Govern~nt Code Section 54956.8 concerning
potential terms and conditions of acquisition and/or disposition of real
property located southwest of the intersection of Highway 111 and
La Quinta Centre Drive. Property Owners/Negotiator: Torre Nissan.
GeorgE' Velarde.
2. Conference with the Agency's real property negotiator. Douglas R.
Evans. pursuant to Government Code Section 54956.8 concerning
potential terms and conditions of acquisition and/or disposition of real
property located at the northeast and southeast corners of Avenue 50
and Washington Street identified as APN 646-070-013 and
770-40-012. respectively. Property Owners/Negotiators: Westport
La Quinta. L.P.. and Urban Housing Communities. Roger Davila.
The Redevelopment Agency recessed to Closed Session to and until the hour
of 4:00 p.m.
4:00 P.M.
PUBLIC COMMENT - None
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April 17. 2007
CONFIRMATION OF AGENDA - Confirmed
APPROVAL OF MINUTES
MOTION - It was moved by Agency Members Sniff/Adolph to approve the
Redevelopment Agency Minutes of April 3, 2007 as submitted. Motion
carried unanimously.
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED APRIL 17,2007.
2. RECEIVE AND FILE TREASURER'S REPORT DATED FEBRUARY 28,
2007.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED
FEBRUARY 28, 2007, AND INVESTMENT SUMMARY REPORT FOR
THE QUARTER ENDING MARCH 31, 2007.
4. ACCEPTANCE OF A MINOR PUBLIC WORKS PROJECT WITH
LANDMARK SITE CONTRACTORS TO CONSTRUCT A BLOCK WALL
AROUND THE L4 PUMPING STATION AT SILVERROCK RESORT.
MOTION - It was moved by Agency Members Sniff/Kirk to approve
the Consent Calendar as recommended. Motion carried unanimously.
BUSINESS SESSION
1. CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT
WITH ALTEVERS ASSOCIATES FOR DESIGN OF THE SILVERROCK
RESORT PERMANENT CLUBHOUSE.
Management Analyst Powell presented the staff report.
In response to Agency Member Kirk, Management Analyst Powell
reviewed the Disposition and Development Agreement schedule;
stated staff has focused on the infrastructure of the project, and
observed the quality and detail of work, and working relationship with
staff .
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April 17. 2007
In response to Agency Member Kirk, Agency Counsel Jenson
explained the City proceeded with a similar process in awarding a
contract without the bidding process when Rutan & Tucker was
retained for attorney services.
Agency Member Henderson requested Counsel explain the legality of
approving the contract for the record.
Agency Counsel Jenson stated the City has adopted an internal policy
per thEl Municipal Code that allows the City to award a contract based
on experience and staff's observation of work of a service provider.
Agency Member Adolph stated it took a long time to get a golf course
and boutique hotel; we now have an opportunity to expedite the
process; an architect can give you the design and the project does not
need to have a specific architect. He conveyed his support of the
agreement so as to not delay the process.
Agency Member Sniff conveyed his discomfort with the process and
concerns of setting a potential precedent. He requested the
opportunity to interview the applicants.
Chairman Osborne questioned who would decide the size of the
clubhouse. Management Analyst Powell stated the size will be
approved by the Agency Board as recommended by staff, and
explained the size referenced in the staff report is only an estimate.
Agency Member Adolph stated this is not a private country club which
is different from a public facility.
Executive Director Genovese assured the Agency Board will have final
approval of the size of the clubhouse.
In response to Chairman Osborne, Management Analyst Powell
explained the $640,000 budget amount was referenced to the original
estimate made at the beginning stages of the project and only included
the an:hitect design.
Mana~lement Analyst Powell confirmed the proposed agreement is for
the amount of $1,249,000, in response to Agency Member
Henderson.
Redevelopment Consultant Spevacek explained the fee was compared
with other architect's fees and went through a validation process.
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April 17, 2007
Agency Member Sniff conveyed concerns as to who would be
selecting the furniture and fixtures, where they would be purchased
and if cost effective, and allowing carte blanc. He stated the
agreement is faulty.
Agency Member Kirk conveyed his concerns of the $1.2 million
contract; the Agency is giving the architect funds and authority to
spend the funds for furnishings.
At 6:37 p.m., the Redevelopment Agency recessed to the hour of
7:41 p.m.
Redevelopment Consultant Spevacek explained the components of the
contract totaling $1,249,000 as follows: $960,000 for architectural,
structural/engineering, mechanical/electrical, and food services;
$65,000 for subcontractors; and $179,000 for interior design.
Additionally, a 12% fee will be added to the cost of the fixtures and
equipment, which is budgeted for $1.6. million if the full budget is
expended. He explained the fixtures and equipment budget will be
included in the CIP and presented to the Agency for approval at the
time of purchasing.
In response to Agency Member Henderson, Management Analyst
Powell explained the Agency will be presented with sample fixtures
and a list for approval.
Redevelopment Consultant Spevacek explained how the cost figure
was derived; staff initially established a small clubhouse program, but
as negotiations began, they met with Lowell and Golf Dimensions and
asked if the size would be sufficient to service two golf courses. Both
indicated the clubhouse should be larger. With guidance from Golf
Dimensions, the budget amount for fixtures was based on the quality
level expressed for the clubhouse. He further explained the conceptual
plan will be expanded.
In response to Agency Member Kirk, Redevelopment Consultant
Spevacek confirmed the interior designer or general contractor would
be responsible for purchasing the fixtures after authorization by the
City, and based on the approval of the final schedule of items to be
purchased.
Agency Counsel Jenson stated she understood the City would not be
the purchaser of these items; and noted language could be added to
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April 17, 2007
Page 41, Paragraph 2, referring to final design documents, stating
"upon conceptual appro va/ of the Agency Board."
Agency Counsel Jenson referenced the compensation issue, stating
the interior designer or general contractor would essentially be acting
as a purchasing agent for the City; the agreement actually indicates
they are a purchasing agent. She stated staff could clarify the
contract to add the amount of $1.2 million plus the markup.
Redevl~lopment Consultant Spevacek explained the reason for
including purchase of the fixtures at this phase is to enable another
entity to oversee the selection of materials and to ensure the proper
fixtures are purchased.
Agency Member Sniff stated, based on his experience with contracts,
it doesn't strike him as fundamentally good business sense to consider
cost plus 12%.
Agency Member Henderson stated she doesn't have a problem with
this bElcause it takes the City forever to get anywhere, and this will
help move the project forward. She noted Council will see the design,
and approve that portion of it.
Rob Johnson, Golf Dimensions, stated the technical team has analyzed
the existing conceptual plans, looked at other clubhouses, and
determined the plans are small in scope and nature. They are trying to
validate how the clubhouse will be used, and plan to tour Desert
Willows and Indian Wells as a group. He feels the fees proposed by
Altevers Associates are fair; he understands an account will be
established for the purchase of the fixtures, and that each invoice will
be scrutinized by City staff.
In response to Agency Member Henderson, Mr. Johnson stated he
works for Golf Dimensions, and is contracted as the Project Manager
for the, SilverRock Resort.
In response to Agency Member Kirk, Mr. Johnson confirmed he has
worked with a municipality under contract without an RFP.
Robert Altevers, Altevers Associates, explained the budget for the
interior was derived similarly to the building budget, based on square
footage and a level of expected quality compared to other like
projects. He stated the purchases will be based on the approved
design and budget.
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April 17. 2007
Agency Member Sniff asked Mr. Altevers what sense he has of
La Guinta. Mr. Altevers stated none of his projects look like another
project; the essence of the design is derived by going through a
process of understanding the site and client and is refined with further
research. He stated there would be no preconceived idea of the
project.
Chairperson Osborne stated he understands Altevers has worked with
the Lowell Group before, and hopes the design is not dependent upon
theirs. He also hopes the clubhouse design will stand on its own.
Agency Member Adolph stated there must be synchronization and
some sort of continuity. He has been to various country clubs and
none are the same, and have their own sense of the environment. He
feels the Agency's preference is continuity with the building and the
environment.
In response to Chairman Osborne, Management Analyst Powell stated
the SilverRock Resort Subcommittee has not reviewed the contract
because the last Subcommittee meeting was cancelled. Executive
Director Genovese noted the subcommittee has been updated on the
progress of the contract.
Agency Member Henderson requested the Executive Director explain
how the process got to this point.
Executive Director Genovese explained it was staff's understanding
that the Agency had authorized following a process similar to the
Jacobson & Harding contract, but is available to receive alternate
direction.
Agency Member Kirk questioned the need to change the golf course
architect; reinforced that we have a clubhouse architect who is
unparalleled in the Valley; has been in some of the facilities designed
and they are outstanding. No action has been taken by the Agency to
approve a sole-source contract, and we have a responsibility to use a
public process. He feels strongly about the use of public money, and
using a competitive process. He suggested looking into compensating
Mr. Altevers.
Agency Member Sniff stated he doesn't see the desperate urgency.
He believes in competitive bidding, and has a significant area of
discomfort. He questioned receiving an accurate response from the
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April 17, 2007
contractor when asked if he had a sense of the area, and he cannot
support this agreement.
Chairman Osborne stated he remembers the painful meetings selecting
every single item for the SilverRock Resort and conveyed his
confidence that Mr. Altevers has the experience and beautiful design
work to do a fine job in representing the feel of La Guinta.
MOTION - It was moved by Agency Members Adolph/Henderson to
approve a Professional Services Agreement with Altevers Associates
for design of the SilverRock Resort Permanent Clubhouse and
authorize the Executive Director to execute the agreement subject to
any minor modifications approved by the Executive Director and
Agency Counsel. Motion carried by a vote of 3-2, Agency Members
Sniff and Kirk dissenting.
STUDY SESSION - None
CHAIR AND AGENCY MEMBERS' ITEMS - None
PUBLIC HEARINGS - None
ADJOURNMENT
. There being no further business, it was moved by Agency Members
Sniff/Henderson to adjourn. Motion carried unanimously.
R:e7IY sU_bmitted,
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Veronica J. lVIo cino, CMC
City Clerk
City of La Guinta