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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 Redevelopment Agency Minutes 2 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 . Redevelopment Agency Minutes 3 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. Redevelopment Agency Minutes 4 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 Redevelopment Agency Minutes 5 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. Redevelopment Agency Minutes 6 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 Redevelopment Agency Minutes 7 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, ~~ Veronica J. lVIo cino, CMC City Clerk City of La Guinta