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# DEPARTMENT OF EDMUND G. BROWN JR. • GOVERNOR
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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
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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,
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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
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