HomeMy WebLinkAbout12/15/1999 - STAFF REPORTS (4) DATE: DECEMBER 15, 1999
TO: CITY COUNCIL
FROM: DIRECTOR OF MANAGEMENT&BUDGET
APPROPRIATION OF $391,349 FROM THE C1TY'S PARKING FUND TO REIMBURSE
Vk S N DEVELOPMENT FOR THE CONSTRUCTION OF THE PLAZA MERCADO
PARKING LOT, PALM CANYON DRIVE SIDEWALK IMPROVEMENTS, AND HERITAGE
TRAIL PARKING LOT/STREBTSCAPE UPGRADES
RECOMMENDATION:
That the City Council approve the appropriation of$391,349 from the City's Parking Fund to
reimburse Wessman Development for the construction of the parking lot behind Plaza
Mercado, sidewalk improvements on South Palm Canyon Drive, and streetscapelparking lot
upgrades on Belardo Road,per the Second Amendment to the Disposition and Development
Agreement("DDA-)approved November 5, 1997.
BACKGROUND:
On May 6, 1998, the Downtown Development Director presented to the Community
Redevelopment Agency a report on the sale of the parking lot parcel behind Plaza Mercado,
from the Community Redevelopment Agency to the City's Parking Fund. The report
recommended the Agency approve Wessman Development(the`Developer")to construct the
lot on behalf of the City's Parking Fund for an amount not to exceed$371,410, since that cost
was less than the City Engineer's estimated cost of$404,517 for an Agencyjonslructed lot.
In addition, the Developer was authorized by the City Council to construct certain
improvements in the public right-of-way, including sidewalk pavers, on South Palm Canyon
Drive. Thee was no appropriation from the Parking Fund made at that time. The lot has now
been completed. The Developer is now seeldng reimbursement in the amount of$391,340
for his costs per the agreement for the parking lot and the South Palm Canyon Drive
improvements amounting to$30,236.
The costs of the sidewalk improvements ($30,236) should be paid by the Community
Redevelopment Agency,not the Parking Fund. An additional extra cost of the overall project,
but not one included in the$391,340 is the cost of the Heritage Trail streetscape and parking
lot upgrades along Belardo Road. These costs are$30,244, and should also be paid by the
Parking Fund because the landscaping, wall, sidewalk, bike trail were required by the
construction of the parking lot. While the CBD Project Area has a line item for sidewalk
improvements in the amount of$9,580,the Agency needs to appropriate an additional$20,656
from CRA Fund Balance to cover the expense of the South Palm Canyon Drive sidewalk
improvements. Therefore, the Parking Fund will pay the entire cost of the parking lot
improvements to the Developer, including the$30,244 for the heritage Trail upgrades to the
parking lot. The Agency will pay the cost of the South Palm Canyon Drive sidewalk
improvements.
However,the issue ofthe parking lot reimbursement has been coupled with the issue offiquidated
damages claimed by the City against the Developer for the delay in completing the project. The
DDA had included a schedule offiquidated damages ifthe project was completed past its deadline;
according to the tams ofthe amended DDA,the City contends that the Developer owes the City
or Agency liquidated damages. The Developer,however,is disputing that amount. Therefore,
staff is proposing that the first payment to the Developer be the gross amount owed by the City
and Agency,minus the proposed liquidated damages detemtined by Council/Agency.
Plaza Mercado Parking Lot
December 15, 1999
Page 2
Once a settlement of the liquidated damages issue occurs, as well as any final acomft of
charges and credits,the amount withheld will also be paid to the Developer.
Therefore,notwithstanding the issue of liquidated damages,payment authorized for the parking
lot, stieetscape upgrades, and sidewalk improvements is as follows:
Item City Total Agency Source of Funds
Total
Plaza Mercado $361,105 Parking Fund
Parking Lot (City)
South Palm Canyon $30,236 CRA/CBD Project
Drive Sidewalk Area
improvements
Heritage Trail $30,244 Parking Fund
Streetscape (City)
Improvements
$391,349 $30,236
C
ITT S. YMO Y
irector f Management&Budget Director
APPROVED: O
Q�Manager
ATTACHIvOWS:
1. Budget Resolution �PPRC9°/iED
2. Minute Order 0 D` '
,aM
MINUTE ORDER NO. (,:�•: " ''
APPROVING A PAYMENT IN AN AMOUNT NOT TO
EXCEED$391,349 TO WESSMAN DEVELOPMENT FOR THE
REIMBURSEMENT OF COSTS INCURRED IN THE
CONSTRUCTION OF THE PLAZA MERCADO PARKING LOT
'"
—AND HERITAGE TRAIL STREETSCAPE/PARKING LOT
UPGRADES. �r •— —
r �
a
S I HEREBY CERTIFY that this Minute Order,approving payment is an amount not f'f
to exceed $391,349 to Wessman Development for the reimbursement of costs I
incurred in the construction of the Plaza Mercado Parking Lot(for the City s
king Fund as well as Heritage Trail streetscape/parking lot upgrades(along
Belardo Road, with the first payment limited to$263,349 pending resolution of
disputed amount of$128,000 by future action of the City Coun4 was adopted by
the City Council of the City of Palm Springs, California, in a meeting thereof held
on the 15' day of December, 1999.
PATRICIA A. SANDERS
City Clerk
r ,
�r-
P
RESOLUTION NO.* 19700
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR
THE 1999-00 FISCAL YEAR.
WHEREAS Resolution 19541, approving the budget for the fiscal year
1999-00 was adopted on June 16, 1999; and
WHEREAS the City Manager has recommended, and the City Council
desires to approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is
authorized to record inter-fund cash transfers as required in
accordance with this Resolution, and that Resolution 19541,
adopting the budget for the 1999-00 fiscal year is hereby amended
as follows:
SECTION 1. ADDITIONS
FUND Activity Account Amount 1
No. 131 4461 43200
$391,349
Title:
Parking Fund Parking Control Contractual Services
Purpose:To provide funds to reimburse Wessman Development for improvements at
Plaza Mercado.
SECTION 2. SOURCE
FUND Activity Account Amount
No. 131
29301 $391,349
Title:
Parking Fund Fund Balance
Adopted this- 15th day of December , 1999.
AYES: Members Hodges, Jones, Oden, Reller-Spurgin
NOES: Mayor Kleindienst
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED AS TO FORM
I c