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HomeMy WebLinkAboutReports - 1 (2) 6NT O� x it �i . I i z w II! C1 o M # DEPARTMENT OF EDMUND G. BROWN JR. • GOVERNOR Qgc,FDR1j1'F I N A N C E 91 5 L STREET i SACRAMENTLI RA■ 9 55 1 4-3 705 I WWW.DDF.CA.GCV April 24, 2013 Ms. Veronica Tapia, Accountant II City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Tapia: Subject: Objection to Oversight Board Action The City of Palm Desert successor agency(Agency) notified the California Department of Finance (Finance) of its February 8, 2013 Oversight Board (OB) action 2013-001 on February 8, 2013. Pursuant to Health and Safety Code (HSC) section 34179 (h), Finance has completed its review of your OB action, which may have included obtaining clarification for various items. Based on our review and application of the law, the Agency's OB resolution No. 033 related to the conveyance of parcels APN 627-101-038 and APN 627-101-039 to the City of Palm Desert for the construction of the additional lanes on Monterey Avenue and the turn pocked on Fred Waring Drive is not permitted. HSC section 34181 states the OB shall direct the Agency to transfer ownership of those assets that were constructed and used for a governmental purpose such as roads to the appropriate public jurisdiction. Since the two parcels are currently vacant and are not yet constructed for a governmental purpose, the transfer is not allowed. As authorized by HSC section 34179 (h), Finance is returning your OB action to the board for reconsideration. Please direct inquiries to Beliz Chappuie, Supervisor or Mindy Patterson, Lead Analyst at (916) 445-1546. Sincerely, ,t STEVE SZALAY Program Budget Manager cc: Ms. Janet Moore, Director of Housing, City of Palm Desert Ms. Pam Elias, Chief Accounting Property Tax Division, County of Riverside Auditor Controller California State Controller's Office .1;:4.e12...„.._ BY OVERSIGHT BOARD ON c--2 —a'vl3 . VERIFIED BY C-�, Original on file with City Clerk's Office .. z 13, s , • I'AI AI 1)t'+9'fi_L» ( 1 1l f?IV I\ 26" LCj j is f • „1 N tit: 760 346-061 azeII3y, !,x 1 vv E,t� 341...bi72 .0 7 j it71,,•Eld.m tIi'4.'S L."C{„ May 30, 2013 Mr. Steve Szalay, Project Budget Manager California Department of Finance 915 L Street Sacramento, California 95814-3706 RE: Protest to DOF Determination on OB Action 2013-001 Dear Mr. Szalay, This letter is to protest the determination by the Department of Finance (the "DOF") to object to the transfer of certain parcels of real property as stated in a letter from DOF to the City of Palm Desert, dated April 24, 2013 (the "DOF Letter"). Pursuant to Health and Safety Code Section 34181(a), on February 4, 2013, the Oversight Board to the Successor Agency to the Palm Desert Redevelopment Agency (the "Oversight Board") approved Resolution No. OB-033 authorizing and approving the conveyance of small portions of certain real property known as assessor's parcel numbers 627-101-038 and 627-101-039 (the "Property"). Health and Safety Code Section 34181(a) provides that the Oversight Board may direct the Successor Agency to the Palm Desert Redevelopment Agency (the "Agency") to transfer to the appropriate public jurisdiction ownership of assets that were constructed and used for a governmental purpose. Portions of the Property are required for the construction of a turn pocket for the City of Palm Desert's Fred Waring Drive and Monterey Avenue improvement project (the "Road Project"). Specifically, 3,922 square feet of A.P.N. 627- 101-038 and 3,783 square feet of assessor's parcel number 627-101-039 are required to facilitate the Road Project. Accordingly, the Agency sought direction from the Oversight Board to transfer the Property to the City. The DOF letter objected to the transfer of the Property because the "two small portions of the existing parcels that comprise the Property are currently vacant and are not yet constructed for a governmental purpose. For the reasons described below, the Agency disagrees with DOF's determination that the Property transfer is not allowed under Health and Safety Code Section 34181(a) and requests that DOF approve the transfer of the Property. Section 34181(a) requires the Oversight Board to direct the transfer of property that was "constructed and used" for a governmental purpose, such as roads. In the case of property to be improved as a road, these criteria should be read to include property that June 3, 2013 Mr. Steve Szalay Page 2 cannot be used for any other purpose, even if little or no construction has been completed. The criteria are intended to prevent the transfer of property that might ultimately be used for purposes other than governmental purposes. The criteria are not intended to unnecessarily delay the use of property for legitimate governmental purposes, especially when such use promotes the health and safety of the community. The Property cannot be used for any purpose other than road improvements. The Property is comprised of two small slivers of land adjacent to the roadway. Moreover, the City and the former Palm Desert Redevelopment Agency have long considered the Property a necessary part of the Road Project to mitigate health and safety concerns. Specifically, in 2007, the turn pocket was included as part of a Congestion Mitigation and Air Quality Improvement Program grant application. The City prepared an analysis confirming that the turn pocket will significantly improve air quality because it will reduce vehicle delays, which in turn reduce fuel consumption and vehicle emissions. Similarly, reducing traffic congestion can improve the safety of traveling in roadways adjacent to the turn pocket. The timing of roadway construction projects in the desert is limited due to seasonal conditions. The inability to begin the bidding process in June will delay the Road Project and be detrimental to the air quality and safety in the area. Therefore, the Agency is requesting that the DOF approve the transfer of the Property and permit the Road Project to begin construction as soon as possible. Sincerely, /, / t, OHN M. WOHLMUTH i EXECUTIVE DIRECTOR Attachments: DOF Letter dated April 24, 2013 Resolution No. OB-033 Map Outlining Parcels 2007 CMAQ Analysis cc: Janet Moore, Director of Housing, City of Palm Desert Martin Alvarez, Director of Economic Development, City of Palm Desert Paul Gibson, Director of Finance, City of Palm Desert Mark Greenwood, Director of Public Works, City of Palm Desert Veronica Tapia, Accountant II, City of Palm Desert Pam Elias, Chief Accounting Property Tax Division, County of Riverside Auditor Controller Mindy Patterson, Lead Analyst, California Department of Finance California State Controller's Office SUCCESSOR AGENCY TO THE Pill EMI REBEVELOPMENI ARNO -2-