Loading...
HomeMy WebLinkAboutRes OB-032 (2)RESOLUTION NO. OB - 032 A RESOLUTION OF THE OVERSIGHT BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, RECEIVING AND FILING MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETINGS OF DECEMBER 13, 2012, AND JANUARY 10, 2013 RECITALS: A. Pursuant to Health and Safety Code Section 34179(3), all actions taken by the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency (the "Oversight Board") shall be adopted by resolution. B. There has been presented to this Oversight Board for approval, receiving and filing of Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meetings of December 13, 2012, and January 10, 2013. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The Oversight Board hereby approves receiving and filing Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meetings of December 13, 2012, and January 10, 2013, which are made a part hereof and attached hereto as "Exhibit 'A'." Section 3. The staff of the Successor Agency is hereby directed to provide the State Department of Finance ("DOF") written notice and information regarding the action taken by the Oversight Board in Section 2 of this Resolution. Such notice and information shall be provided by electronic means and in a manner of DOF's choosing. Section 4. The officers of the Oversight Board and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things that they may deem necessary or advisable to effectuate this Resolution. PASSED, APPROVED, AND ADOPTED this 4th day of February, 2013. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: BY (5-p�(De,a ASEN i) VERSIdHARD ON t+—P-6713 RACHELLE D. KLASSEN, SECRETARY VERIFIED BI OVERSIGHT BOARD OF THE SUCCESSOR AGENCY Original on file with City Clerk's Office TO THE PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. OB - 032 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MINUTES December 13, 2012 January 10, 2013 2 RESOLUTION NO. OB - 032 1 1 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, DECEMBER 13, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 1. CALL TO ORDER - 3:00 P.M. Chair Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Director Jean M. Benson Director Cindy Finerty Director Jan C. Hamik Vice Chair William R. Kroonen Chair Robert A. Spiegel Present at 4:00 p.m. Reconvening: Councilmember-elect Van G. Tanner Councilmember-elect Susan Marie Weber Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Kevin Vest, Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Request for Closed Session: DECEMBER 13, 2012 A. Conference with Real Property Negotiator pursuant to Govemment Code Section 54956.8: 1) Property: 42-148 Verdin Lane (APN 624-440-003), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Justin and Patricia Mansker Under Negotiation: A. Price x Terms of Payment 2) Property: 75-406 Orange Blossom Lane (APN 634-062-013), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Heika Pfeiffer Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 1 On a motion by Finerty, second by Benson, and 5-0 vote of the Successor Agency Board of Directors, Chair Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:05 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None 2 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 Note: During the City Council Meeting conducted immediately prior to this Successor Agency Board of Directors Meeting, declaration of the 2012 General Municipal Election was made, and the annual City of Palm Desert Mayoral Rotation occurred, with Jan C. Harnik being appointed Mayor (Chair of the Successor Agency Board of Directors), and Jean M. Benson being appointed Mayor Pro Tem (Vice Chair of the Successor Agency Board). VI. CONSENT CALENDAR A. MINUTES of the Adjourned Regular and Regular Meetings of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency of November 15 and November 22, 2012. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCQE$SQ19 A(FNC.,Y TRE,,ASVRY - Warrant Nos. 96SA, 100SA, 105SA, 109SA, and 112SA. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of October 2012 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon a motion by Spiegel, second by Tanner, and 5-0 vote of the Successor Agency Board of Directors, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 3 RESOLUTION N0. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING IX. NEW BUSINESS DECEMBER 13, 2012 A. REQUE$T FOR APPROVAL OF THE SETTLEMENT, RELEASE, AND INDEMNITY AGREEMENT AMONG THE COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (CONTRACT NO. C32470) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Wohlmuth noted the proposed Settlement Agreement, but for the public's benefit he explained that in 1992 the City of Palm Desert annexed Costco, at the time it was Home Base, and the development on the northwest comer of Dinah Shore Drive and Monterey Avenue, which was developed under the County of Riverside. As part of the agreement to annex, the City and County went into a Cooperative Agreement to exchange Redevelopment Funds for sales tax. In order words, when it was developed the sales tax was going to the County of Riverside, and when the City annexed it, the sales tax would go to the City. Therefore, in this Cooperative Agreement, the City agreed to accept the sales tax and pay the County through a pass -through agreement an equal amount of sales tax from Redevelopment to the Health and Juvenile Fund at the County of Riverside. He said the Health and Juvenile Fund, funds the Regional Access Project (RAP) that provides grants throughout the Coachella Valley to Health and Juvenile Services. In 2003, the State of Califomia, as part of their budget process passed what is now called the "Triple Flip." In other words, the State took sales tax and gave cities and counties back property tax. That process to exchange those funds created uncertainty in this calculation, and since the City would receive property tax in lieu of sales tax, original agreements didn't address how they would be affected by the "Triple Flip." In 2004, the State passed clean-up legislation that then did address how the "Triple Flip" and Regional Access Project (RAP) would receive their funds. Staff never calculated the clean-up language 'Triple Flip" in the pass -through payments to the County, and from that period forward to today, the amount owed from this calculation is $2.7 million. Staff is proposing a Settlement Agreement with the County, Palm Desert Successor Agency, and City to settle this $2.7 million by paying the County $2.7 million from the Redevelopment Trust Fund to the County of Riverside who will then forward the money to the Regional Access Project. This matter was considered and approved by the Oversight Board last week. However, the Department of Finance did not approve it, and something between disapproved and under consideration is the current status. He recommended the Council approve the proposed agreement and only authorize the City Manager/Executive Director to sign the Agreement once the matter is cleared by the Department of Finance, City of Palm Desert, and the County of Riverside. 4 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 Councilman/Director Spiegel moved to, by Minute Motion, approve the Settlement, Release and Indemnity Agreement among the County of Riverside, City of Palm Desert, and the Successor Agency to the Palm Desert Redevelopment Agency regarding the Cooperative Agreement Among the County of Riverside, City of Palm Desert, and Palm Desert Redevelopment Agency (the "1992 Cooperative Agreement"), and authorize the City Manager/Executive Director to execute the Agreement, subject to clearance by the Califomia Department of Finance. Mayor Pro Tem/Vice Chair Benson commented she was a member of the Regional Access Project (RAP) Board, and the City Attorney determined she didn't have a direct benefit from these funds and okayed to vote. Councilman/Director Tanner seconded the motion, and it carried by a 5-0 vote. X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None 5 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT On a motion by Tanner, second by Spiegel, and 5-0 vote of the Successor Agency Board of Directors, Chair Hamik adjourned the meeting at 6:12 p.m. ATTEST: Rd HEL E D. KLASSEN, = ECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AN C. H ' NIK, CHAIR 6 RESOLUTION NO. OB - 032 MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JANUARY 10, 2013 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Harnik convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chair Jean M. Benson Director Robert A. Spiegel Director Van G. Tanner Director Susan Marie Weber Chair Jan C. Harnik Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney William L. Strausz, Successor Agency Counsel Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 A. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): 1) City of Palm Springs v. All Persons Interested, etc., et al., Riverside County Superior Court, Case No. INDIO 51124 With Successor Agency Board of Directors' concurrence, Chair Harnik adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4:03 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular December 13 and December 27, 2012, Meetings of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 117SA, 122SA, 127SA, 132SA, 134SA, and 136SA. Rec: Approve as presented. Upon a motion by Spiegel, second by Weber, and 5-0 vote of the Successor Agency Board of Directors, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 2 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING IX. NEW BUSINESS JANUARY 10, 2013 A. RECEIVE AND FILE OVERSIGHT BOARD -APPROVED TRANSMITTAL OF THE DUE DILIGENCE REVIEW FOR THE NON -HOUSING FUND AND ACCOUNT BALANCES OF THE FORMER PALM DESERT REDEVELOPMENT AGENCY IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34179.5. Ms. Moore stated that on January 7, 2013, the Oversight Board reviewed the first Due Diligence Review (DDR) for all Other Funds of the former Redevelopment Agency. It was determined, based on the review under the DDR, there was about $8 million that could be transmitted to the taxing entities. The Oversight Board requested it be submitted to the Department of Finance (DOF) by January 15, 2013, which staff planned to do by the next day. In that review, staff looked at all the cash that was on hand for the Redevelopment Agency and looked at projected revenues and expenditures for the next period of time. Therefore, in this case, for the DDR, staff projected out through the end of the life of what would have been the project areas for the Redevelopment Agency. Staff determined it needed to retain some of the cash on hand in order to meet the obligations that exist as of right now. Staff will be submitting that information to the DOF, and they have until April 1, 2013, to respond to the City as to their determination of staff's review. On April 1, if the DOF does not agree, staff will have five days to either request to Meet and Confer or actually remit the money. She offered to answer any questions. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. Director Spiegel moved to, by Minute Motion, receive and file the Due Diligence Review for the Non -Housing Fund and Account Balances of the former Palm Desert Redevelopment Agency ("Other Funds DDR") pursuant to Health and Safety Code Section 34179.5. Motion was seconded by Weber and carried by a 5-0 vote. Chair Harnik stated the work that has gone into the unraveling of the Redevelopment Agency is amazing and thanked everyone involved, because it was overwhelming. 3 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING. JANUARY 10, 2013 B. RECEIVE AND FILE DEPARTMENT OF FINANCE DETERMINATION LETTER RELATIVE TO THE DUE DILIGENCE REVIEW FOR THE LOW- AND MODERATE -INCOME HOUSING FUND IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34179.5. Ms. Moore stated in October 2012, the Oversight Board approved the Due Diligence Review (DDR) for the Low- and Moderate Income Housing Fund (LMIHF). At that time, it was reviewed and determined it needed to retain the cash on hand to meet the obligations that the Housing Fund, or under the Redevelopment Agency, the Enforceable Obligations that the Department of Finance has agreed to. However, when the review was submitted, the DOF felt that because some of the requests were based on projections, they did not agree with the Successor Agency retaining the cash. She said there was $12.9 million that was on hand in the LMIHF, and based on the DOF final determination, which was after a Meet and Confer Session, they required the funds to be remitted within five days, which has been done. This item was to bring the Council up to date with respect to that review and it is final. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. Director Spiegel moved to, by Minute Motion, receive and file the Department of Finance Letter of Determination relative to the Due Diligence Review ("DDR") for the Low- and Moderate - income Housing Fund ("LMIHF") pursuant to Health and Safety Code Section 34179.5. Motion was seconded by Weber and carried by a 5-0 vote. C. RECEIVE AND FILE DEPARTMENT OF FINANCE DETERMINATION LETTER RELATIVE TO THE THIRD RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS3) FOR THE PERIOD OF JANUARY 1 - JUNE 30, 2013. Ms. Moore stated staff submitted the ROPS3 for consideration, and the Department of Finance (DOF) rejected several items on the list, some of which were understandable, because of subsequent legislation from when it was originally submitted. Some of those items were projects that could be paid for by bond funds. She said staff understood, however, it freed up dollars and some administrative costs that could be applied to another line item that wasn't an Enforceable Obligation. Therefore, staff asked the DOF if it could replace those items on the ROPS Schedule, then held a Meet and Confer Session, and the DOF did not agree. She said Palm Desert will have to try to make those dollars up in future allocations. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. 4 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 Director Spiegel moved to, by Minute Motion, receive and file the Department of Finance Letter of Determination relative to the third Recognized Obligation Payment Schedule (ROPS3). Motion was seconded by Weber. Director Weber stated that on Schedule 2 of the DDR, under the January 31 line item, it states, "...the assets associated are owned by the City." She asked if that was referring to the land, and if the value of the land was $12,092 million. Additionally, in the same line item, what was meant by the statement, "...improvements were transferred to the owner." Ms. Moore explained the $12,092,882 figures only represented the value of the improvements for the Aquatic Center and street improvements on Fred Waring Drive. Further responding, she said improvements are defined by the cost of the pool and building. She went on to say the land for the pool was already owned by the City. Chair Harnik called for the vote, and the motion carried by a 5-0 vote. X. CONTINUED BUSINESS None XL OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR 1) Oversight Board Update - State Department of Finance (DOF1 Mr. Wohlmuth recalled for the Board Members that they approved a Settlement Agreement with the County of Riverside for approximately $2.7 million of Regional Access Project (RAP) funds that would be paid from the former Redevelopment Agency to Riverside County, representing a period of time between 2006 to date. After the Oversight Board approved that action, DOF suspended it. He spoke with DOF this morning on the RAP Agreement, and it will hopefully be sorted out soon. Second is the issue of the 11.5-acre parcel transfer for UCR (University of California, 5 RESOLUTION NO. OB - 032 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 Riverside), which is being reviewed, that Palm Desert believed to be an existing obligation going to UCR for their Medical School and Ambulatory Medical Clinic. This would have the purpose of both providing services to Palm Desert and Coachella Valley residents, as well as Medical School student and intern training at that facility. He has been working closely with DOF on this property transfer and hoped it will clear soon. In answer to question, he hoped both of these items would be approved by DOF well before the Finding of Completion is rendered. He said it sounded as though DOF has all the information it needs on the UCR transfer, and this morning he talked with them at length about the RAP Agreement. Both items have been sent up the chain of command at DOF. B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ORAL COMMUNICATIONS - C None XV. ADJOURNMENT Upon motion by Spiegel, second by Tanner, and unanimous vote of the Successor Agency Board of Directors, Chair Harnik adjourned the meeting at 5:00 p.m. ATTEST: RA HEL _ D. KLASSEN, CRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY JAN C. ARNIK, CHAIR 6