2008 06 02 RDA MinutesLA QUINTA REDEVELOPMENT AGENCY
MINUTES
JUNE 2, 2008
An adjourned meeting of the La Quinta Redevelopment Agency was called to
order by Chairman Kirk.
PRESENT: Agency Members Adolph, Henderson, Osborne, Sniff,
Chairman Kirk
ABSENT: None
PUBLIC COMMENT -None
CLOSED SESSION
1. Conference with Agency's real property negotiator, Douglas R. Evans,
pursuant to Government Code Section 54956.8 concerning potential
price, terms, and conditions of acquisition and/or disposition of real
properties identified as APNs: 773-370-028 and -029, Silverhawk
Apartment Homes. Property Owner/Negotiator: G Companies, James
C. Gianulias.
The Redevelopment Agency recessed to Closed Session to and until the hour
of 4:00 p.m.
4:00 P.M.
The Redevelopment Agency meeting was reconvened with no decisions
being made in Closed Session which require reporting pursuant to
Government Code Section 54957.1 (Brown Actl.
PUBLIC COMMENT -None
CONFIRMATION OF AGENDA -Confirmed
APPROVAL OF MINUTES
MOTION - It was moved by Agency Members Sniff/Adolph to approve the
Redevelopment Agency Minutes of May 20, 2008, as submitted. Motion
carried unanimously.
Redevelopment Agency Minutes 2 June 2, 2008
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED JUNE 2, 2008.
MOTION - It was moved by Agency Members SnifflAdolph to approve
the Consent Calendar as recommended. Motion carried unanimously.
BUSINESS SESSION
1. CONSIDERATION OF A CONTRACT AMENDMENT WITH ALTEVERS
ASSOCIATES FOR SILVERROCK RESORT PERMANENT CLUBHOUSE
DESIGN SERVICES.
Assistant City Manager-Development Services Evans presented the
staff report.
In response to Agency Member Osborne, Assistant City Manager-
Development Services Evans confirmed $11,500 of the S76,000
amount was moved from the RBF budget.
Agency Member Osborne stated he does not have a problem moving
funds, but is not in favor of spending the remaining 565,000 amount
for a certificate.
In response to Chairman Kirk, Assistant City Manager-Development
Services Evans explained the 565,000 amount is additional funds for
the architect, and heating and air conditioning and electrical engineers
to create the building design under the LEED program. He added
commissioning authority for the LEED certificate is a separate budget.
Agency Member Henderson stated she would support the City's
participation in making this a LEED program, but will be leery going
into the future on a LEED certification. She stated she would like to
explore other means to achieve the same end.
Agency Member Sniff stated he agrees, and cannot support the
change order for what he feels is a needless expenditure.
In response to Chairman Kirk, Assistant City Manager-Development
Services Evans explained the change order is for design services for
long-term energy efficiency, with or without LEED certification. He
noted the funds will provide for the architect and the structural and
Redevelopment Agency Minutes 3 June 2, 2008
electrical engineers to work together to design an energy-efficient
building.
Agency Member Sniff questioned why the coordination does not
automatically take place. Assistant City Manager-Development
Services Evans stated the original contract was for designing the
building to code, and did not include taking the design a step farther
as they are now being asked to do.
MOTION - It was moved by Agency Members Henderson/Adolph to
approve an amendment to the Professional Services Agreement with
Altevers Associates to provide additional architectural and
sub-consultant services in an amount not to exceed 576,537, and
authorize the Executive Director to execute the amendment.
Chairman Kirk noted the Agency may wish to forego the LEED
certificate when it is time to submit the application, but he supports
making a small investment to make the clubhouse green friendly.
Agency Member Sniff stated staff should have directed the
contractors to coordinate together when the contracts were originally
approved.
Motion carried 3-2-0 with Agency Members Osborne and Sniff
dissenting.
STUDY SESSION
1. DISCUSSION OF SILVERROCK RESORT CLUBHOUSE FINANCING
AND OPERATIONS PROGRAM.
Community Services Director Hylton reviewed the operations budget
component of the staff report.
Agency Member Osborne stated it seems an increase of 530,000 in
the marketing budget is a marginal marketing campaign for a new
clubhouse. Community Services Director Hylton explained the cost is
actually for a sales manager to bring in event business as opposed to
written marketing. She confirmed there will be additional marketing
expenses once the clubhouse is completed. Agency Member Osborne
stated he has concerns about having enough in the budget for
marketing. He also asked for clarification on the average green fee.
Randy Duncan, of Landmark Golf, explained May and June have not
Redevelopment Agency Minutes 4 June 2, 2008
been factored into the average, and it will probably track at about 581
for the year. He stated he does not anticipate the average rate going
down in order to bring in more banquet events, but rather a slight
increase. Agency Member Osborne commented on the challenge of
keeping the average daily rate up.
Agency Member Sniff referenced the 5500,000 deficit, and asked if
other clubhouses in the Valley make money. Mr. Duncan stated he
does not have that information at this time, but noted Desert Willow
opened with 18 holes of golf in 1997 and increased to 36 holes in
1998, and did not break even until 2005. In response to another
question from Agency Member Sniff, he stated typical clubhouse
hours are 6:00 a.m. to 6:00 p.m. unless there is a banquet.
In response to Agency Member Sniff, Judy Vossler, of Landmark Golf,
stated they do not anticipate serving dinners at SilverRock unless
there is a banquet, and the bar would not be open unless there is a
special function. She indicated that she is not aware of any
clubhouses that make money with only 18 holes and no hotel.
Agency Member Sniff commented on the importance of getting a hotel
open at SilverRock, and inquired about the funding. Executive
Director Genovese stated the 5500,000 deficit the first year and
losses from subsequent years would come from the General Fund;
stated it is not staff's goal to operate on a deficit, and agreed it is not
good business in the long term, but noted it takes time to mature and
gain operations.
Agency Member Adolph asked if the ratio of 520.36 per round of golf
is for a foursome or per person, to which Mr. Duncan responded per
person.
Chairman Kirk noted the deficit is not unexpected. He stated his
request at a previous meeting to see the budget was actually a
request to see the original Performa for the operation and the golf
course. He anticipates the deficits lasting longer than originally
projected, and wants to see the original Performa, as well as a revised
Performa on what is expected currently.
Agency Member Adolph noted the Agency did not anticipate a
recession when they dealt with this issue previously.
Chairman Kirk stated he feels it is time for an update of the forecast,
and noted an operating deficit exists even without the clubhouse. He
Redevelopment Agency Minutes 5 June 2, 2008
wants to see an updated forecast, and get a realistic estimate from
the developer on when the hotels will be online.
Agency Member Osborne noted SilverRock is being built with
redevelopment funds, and not from tax increases to our constituents.
He stated it is a "pay-as-you-go" project, without incurring any
additional bond debt.
Agency Member Sniff stated he agrees with getting a new update
with realistic expectations based on current reality for the next two to
four years.
CHAIR AND AGENCY MEMBERS' ITEMS -None
PUBLIC HEARINGS -None
ADJOURNMENT
There being no further business, it was moved by Agency Members
Sniff/Osborne to adjourn. Motion carried unanimously.
Respectf Ily submitted,
ERO I~~ N ECINO,
City of La Qumta, California