Loading...
HomeMy WebLinkAbout1993-07-28MINUTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY WEDNESDAY, JULY 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor/Chairman Benson convened the meeting at 2:00 p.m. H. ROLL CALL Present. Excused Absence: Mayor Pro-Tempore/Vice Chairman S. Roy Wilson Councilman/Member Buford A. Crites Councilman/Member Walter H. Snyder Councilman/Member Richard S. Kelly Mayor/Chairman Jean M. Benson Also Present: Richard J. Folkers, Acting City Manager Doug Phillips, Deputy City Attorney Sheila R. Gilligan, City Clerk/Agency Secretary Carlos L. Ortega, ACM/Executive Director of Redevelopment Ramon A. Diaz, ACM/Director of Community Development Paul Shillcock, ACM/Director of Economic Development Paul Gibson, Finance Director/City Treasurer III. ORAL COMMUNICATIONS Mr. Paul Gibson, Finance Director, stated that he had an emergency item and asked that Council schedule a Special Meeting to consider it. He said the item dealt with the tax levy for the Indian Ridge Community Facilities District. Mr. Phillips suggested that Council adjourn this meeting to a date and time not less than 24 hours in the future and post a new Agenda. He asked whether it would be necessary to adjourn both the City Council and the Redevelopment Agency meetings, and Mr. Gibson responded that the item needed action by the City Council only. Council agreed to adjourn this meeting to Wednesday, August 4, 1993, at 1:30 p.m. MINUTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY JULY 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IV. OLD BUSINESS A. CONSIDERATION QF A COOPURATIVE AGREEMENT WITH THE COUNTY OF RIVERSIDE REGARDING PROJECT AREA NO. 4. Mr. Ortega stated that the Redevelopment Agency, under redevelopment law, had created a project area in what is still legally County territory. In order for the plan to be implemented, the County must pass an ordinance authorizing the Agency to begin the process, which had been done. In addition, he said the County must pass another ordinance approving the plan, and this had not been done because negotiations had not yet been completed with regard to sharing the tax increment. The County's position previously was that the Agency could create the project area contingent upon the City annexing the Palm Desert Country Club area, with the County to receive 100% pass through of revenues. The City had not agreed, and the County had therefore not passed the second ordinance. He said that in the last two days, the County had made a proposal, and staff needed Council direction to proceed. The County had indicated it would be willing to drop the condition of the annexation. Staffs concern at this point was that an acceptable tax increment sharing agreement be negotiated in order for the City to be able to provide for certain projects within the plan. He said the conceptual proposal at this time was that the County would pass the ordinance, the City would agree to a certain pass through amount, and when the City annexes the area, the .pass through amount would change so that the City would keep more tax increment at that time. Councilman/Member Snyder stated he felt this was a step in the right direction. However, he asked what the difference was between this approach and how we normally handle this kind of process. Mr. Ortega responded that in this case the City wants a pass through agreement because staff wants to know what the taxes will be when and if the area is annexed to Palm Desert. Another reason this is different is that we are creating a project area in territory over which the City has no jurisdiction. That is why the County must pass an ordinance approving the project. Mayor/Chairman Benson stated that is was her understanding that we would not have to annex in that area until everything is worked out. Mr. Ortega agreed and said the issue was whether we can work out proper tax sharing arrangements. Before we annex the area, we want to make sure we have the property amount of revenues to provide the necessary improvements. Upon question by Wilson, Mr. Ortega stated that the advantage of having the County adopt its ordinance now instead of at a later date is that we will have an earlier base year (which 2 NIINUTES SPECIAL MEETING OF ._E PALM DESERT CITY COUNCL, AND ITS REDEVELOPMENT AGENCY JL"LY 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * determines how the current taxes flow to the Agency) and will mean more revenues that will flow to the Agency. The disadvantage is that we could end up being administrators of a redevelopment area in County territory; if that happens, that is our project area, and we would make all decisions with regard to how improvements will be made. Mayor Pro-Tem/Vice Chairman Wilson asked whether we could charge administrative overhead since we would be making improvements in the County territory. Mr. Ortega responded that the law does allow us to in essence operate the Agency using tax increment from the area. Mayor Pro-Tem/Vice Chairman Wilson noted that the only reason we even considered annexing the area was because we were led to believe that a majority of the residents wanted the annexation. He added that there was the possibility that if we started doing road improvements, etc., residents might change their minds and decide not to annex into the City. Councilman/Member Snyder stated he felt the Council/Agency Board should approve the continuance of negotiations and get the appropriate tax sharing agreement so that the City can do the things that need to be done. Mayor Pro-Tem/Vice Chairman Wilson expressed concern that if the annexation is addressed separately, the County might later decide to fight it before LAFCO. Mayor/Chairman Benson stated that she thought there would be a provision in the agreement that the County would not fight the annexation. Mr. Ortega responded that such a provision could be included in the agreement that the County concurs with the City's application to annex the area; if the County did then decide to fight it, they would be in violation of the agreement. Mr. Diaz stated that part of the problem is that an area cannot force itself onto a city until an agreement has been reached with regard to the property tax split. He added that staff recommended that a final agreement be reached with regard to how much money we will be getting so that we will know exactly where we stand when that area comes in. Mr. Ortega stated that staff was asking for conceptual approval of the agreement and would then advise the County of such conceptual approval. The County could then approve the agreement at its next meeting. If the County wanted a firm agreement instead of conceptual approval, staff would then bring it back to Council. 3 MLNLTTES SPECIAL MEETING OF THE PALM DESERT CITY COUNCIL AND ITS REDEVELOPMENT AGENCY JULY 28, 1993 s s s s s s s s s s s s s s s s s* s s* s* s s s s s* s s s s s s s s Councilman/Member Snyder moved to, by Minute Motion, conceptually agree to formation of the Redevelopment Project Area No. 4 and authorize staff to negotiate acceptable sharing of property taxes in order to meet the costs of improvements in the area. Motion was seconded by Wilson and carried by unanimous vote. B. REQUEST FOR DIRECTION RELATIVE TO THE CITY'S POSITION ON SB 1234. Mr. Ortega stated this issue came out of the CVAG meeting on Tuesday. The bill would create a joint legislative committee with no local representation which would look at issues of governmental services and how they are funded. He said staff did not have a problem with the basic premise; however, staff disagreed with not having any local representation. He said they had until March, 1994, to come up with a report on how this can be implemented; the Legislature would then have three months to pass all appropriate laws and legislation. If that did not happen, then sales tax, property tax, and vehicle license funds would be sequestered, and we would find ourselves on July 1 with no funds. He noted that CVAG had opposed the bill and recommended that all of the cities and counties do the same. He added that the bill was moving fast and said it was important for the Council to take action as soon as possible. Councilman Wilson moved to, by Minute Motion, strongly oppose Senate Bill 1234. Motion was seconded by Snyder and carried by unanimous vote. V. ADJOURNMENT Upon motion by Wilson, second by Snyder, and unanimous vote of the Council/Agency Board, Mayor/Chairman Benson adjourned to Closed Session at 2:30 p.m. pursuant to Government Code Section 54956.8, Real Property Transactions (generally east of Cook, owned by Lionel Steinberg). She reconvened the meeting at 3:15 p.m. and immediately adjourned with no action announced from Closed Session. et r1 ry JEjN M. BENSON, MAYOR/CHAIRMAN ATTEST: SHEILA R. GILLIGAN CITY CLERK, CITY OF PALM DESERT SECRETARY, PALM DESERT REDEVELOPMENT AGENCY 4