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HomeMy WebLinkAbout2002-10-07• MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY MONDAY, OCTOBER 7, 2002 — 10:00 A.M. NORTH WING CONFERENCE ROOM — PALM DESERT CIVIC CENTER 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 I. CALL TO ORDER Commissioner Ortega convened the meeting at 10:03 a.m. and stated he would preside until adoption of the bylaws occurred later on the agenda. He announced that this was a Special Meeting of the Riverside County Palm Desert Financing Authority, classified special as it was unknown how many times the Authority would need to meet; no fixed schedule had been set, and each meeting would then be classified as special. He further noted that the Joint Powers Authority (JPA) was subject to provisions of the Brown Act; the agenda had been posted in accordance therewith, and this was an open meeting. II. ROLL CALL Present: Carlos L. Ortega, Commissioner S. Roy Wilson, Vice President Richard S. Kelly, President Absent: Larry Parrish, Commissioner Also Present: Paul S. Gibson, Treasurer Sheila R. Gilligan, Assistant City Manager for Community Services Homer Croy, Assistant City Manager for Development Services William L. Strausz, Palm Desert Redevelopment Agency Counsel Michael O'Connor, Riverside County Deputy Executive Officer Patrick Conlon, City of Palm Desert Special Projects Administrator Rachelle D. Klassen, Secretary ID. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR None MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS OCTOBER 7, 2002 A. RESOLUTION NO. RCPDFA 1 - A RESOLUTION OF THE AUTHORITY COMMISSION OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY, APPROVING BYLAWS OF THE AUTHORITY AND ADOPTING A CONFLICT OF INTEREST CODE CONTAINING DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES. Commissioner Ortega stated that since Mr. Strausz had drafted all the necessary documents, he was invited to this meeting. Mr. Ortega said he further assumed that Mr. Strausz's law firm would be named to represent the JPA. He commented that this JPA was a separate entity from the County and the City, and there may be instances where the JPA needs to make its own determinations apart from the County and the City. He went on to say that when the decision to create the JPA was being made, the plan was to create a four -member board; two members from the County and two members from the City, eliminating any disproportionate balance. Mr. Strausz explained that the bylaws were the means to track the Joint Powers Agreement entered into between the County and the Palm Desert Redevelopment Agency (Agency). He said the bylaws named the officers of the Authority, and as currently drafted, the President of the Authority Commission would be the member who was also the member of the Agency's Board of Directors, Dick Kelly; the Vice President of the Board would be the person who was the member of the Riverside County Board of Supervisors, Roy Wilson. He went on to explain that the Secretary would be Secretary of the Palm Desert Redevelopment Agency, Rachelle Klassen; the Treasurer would be Treasurer of Palm Desert Redevelopment Agency, Paul Gibson; and the Chief Administrative Officer would be the Executive Director of Palm Desert's Redevelopment Agency, Carlos Ortega. With regard to the rest of the bylaws, he said they recited that the body was subject to the Brown Act and three members were required for a quorum. He observed that the bylaws were silent on the issue of meeting schedule. Specifically, no regular meeting date was included, which he said was fairly typical for public entities such as this one, but it meant that all meetings held by this Authority Commission would be Special Meetings and would require notification as such. 2 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 Commissioner Ortega noted that with regard to the bylaws and naming of officers, it was a recommendation; if desired, changes could be made at this meeting. Vice President Wilson commented that it was acceptable to him, and he moved to waive further reading and adopt Resolution No. RCPDFA 1. Motion was seconded by President Kelly and carried by 3-0 vote, with Commissioner Parrish ABSENT. B. CONSIDERATION OF FUNDING VARIOUS PUBLIC CAPITAL IMPROVEMENT PROJECTS VIA BOND PROCEEDS ISSUED BY THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY. Commissioner Ortega stated that this item was blank on the agenda as the last time the participants of this group met, it was an informal session between City and County representatives where it was agreed that each body would develop a list of projects that could be considered for funding. A list compiled by the County was then distributed to the body; Commissioner Ortega advised that the City also had a couple of items. First, he said there was an ongoing space needs analysis being conducted on the existing Palm Desert Sheriffs Station, and he believed it would show the facility to be overcrowded. Therefore, he asked for consideration of building office space across the street on land currently owned by the Agency; an agreement could be developed similar to the one that exists for the current station. He went on to say that based on land already owned by the Agency and on City right-of-way requirements, Mr. Conlon had calculated an estimate of $4.2 million without the cost of the land. He asked for the Authority Commission's consideration of adding this project to the first or second tier of priorities. In response to question, Commissioner Ortega said based on the consultant's review of Agency bonding capacity, it was approximately $21 million; if stretched, it may be as much as $22.5 million. Responding to President Kelly's comment, Vice President Wilson acknowledged that the requests amounted to more than current bonding capacity. But he offered that everything could be taken into account in order to end up with an agreed list that even if in excess of bonding capacity, approval to move forward would allow time for project refinement in the interim, e.g., completion of the Sheriff's Station needs analysis. Commissioner Ortega said the second project offered up by the City was a request from The Living Desert, and Palm Desert's City Council asked staff to find out how many parties might be able to participate. He said The Living 3 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 Desert had asked the Cities of Palm Desert and Indian Wells to assist with funding a new parking lot. Several issues were involved, such as drainage that would require curb and gutter; but the larger reason may lie in that it was currently a dirt parking lot, and a recent Federal study on dust sources specifically identified parking lots. He quickly pointed out that he did not suggest that the Authority needed to fund the entire $3 million project, especially in light of the importance of projects already identified for consideration, but perhaps a combination of funds from this body, mitigation and grant funds could be combined. He suggested providing seed money in an amount such as $1 million and challenging The Living Desert to acquire the rest. Vice President Wilson stated that there was a potential other source of funds in the MSOC (Mobile Source Review Committee) projects, as they have allocated $1 million for PM10 problems in the Coachella Valley. He said it was a 75%-25% match if CMAC subvention funds are used, either cities' or AB 2766 money. He added there would be a workshop on these funds on October 21, the deadline was November 5; possibly Indian Wells and Palm Desert could apply jointly for the project. He agreed that the project could be placed on the Authority's list and then see what other sources could be utilized in the interim. He noted that if matched from the Authority's funds, it would be a 50%-50% match, if from CMAC or AB 2766 funds, it would be a 75%-25% match. Upon inquiry by President Kelly about prioritizing the list of projects, Vice President Wilson said that while the projects were not specifically prioritized, the County had identified a top twelve and a secondary twelve. Further responding, Commissioner Ortega felt the issue that was moving the entire effort was funding of the animal shelter, as it was ready to go, the next agenda item dealt with a proposal for commencing engineering. He said placing a priority on the projects would be accomplished as soon as possible, as it would be more efficient to have one large bond issue rather than issuing in bits and pieces. For example, he explained that bonds could be issued where the two aforementioned projects or portions thereof could be included, but if monies were received from other sources, the Authority could decide to do another project as long as it was eligible. Upon inquiry by Vice President Wilson, Mr. Strausz affirmed that if 21 projects were identified and their costs far exceeded the amount of the bonds, a selective process could be utilized to choose which ones would be financed. 4 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 Vice President Wilson felt including as many projects as possible would be beneficial so as to have flexibility when it was time to identify order of importance. He believed both agencies agreed that the Animal Campus was ready to go. President Kelly agreed. Vice President Wilson added that on his list, the Mecca Clinic and Thousand Palms Library were very important, quickly acknowledging that they were all important projects. He said of course, the County would work cooperatively with Palm Desert for its Sheriffs Substation, and it was a project worthy of a high priority. Vice President Wilson moved to, by Minute Motion, approve in concept the list of 26 projects and the two additional projects presented today, Palm Desert Sheriff's Substation and The Living Desert Parking Lot, with the understanding that priority of projects will be taken up at a later date. Commissioner Ortega said he assumed that if approval for the animal shelter engineering services was given (next item on this agenda), staff should begin preparing the necessary documents for the bond issue. He felt that by the time the documents were ready, priority of projects could be established. Commissioner Ortega seconded the motion, and it carried on a 3-0 vote, with Commissioner Parrish ABSENT. C. REQUEST FOR APPROVAL OF CONTRACT FOR ENGINEERING SERVICES FOR THE UTILITY, STREET IMPROVEMENT DESIGN/BID PACKAGE, AND PARCEL MAP LOT SPLIT FOR THE COACHELLA VALLEY ANIMAL CAMPUS (CONTRACT NO. RCPDFA 20480). Commissioner Ortega provided background, including that the current proposal was for Animal Samaritans to provide land in exchange for the Authority's authorization to provide certain improvements to other land besides that to be used for the shelter. He said there is a proposal for engineering, but the Authority Commission should be advised that presently, there was no money set aside for this purpose; that issue would have to be discussed later. Mr. Conlon went on to explain that the Robert Bein, William Frost & Associates (RBF) proposal being considered was the first step in transferring the property from Animal Samaritans to the Financing Authority or Riverside County. He said a lot split/parcel map needed to be filed, and as a condition 5 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 of the transfer of property, it had been verbally agreed with Animal Samaritans that utilities would be brought to Animal Samaritans property along Rio Del Sol to the animal campus location. He said in doing so, Animal Samaritans' property will be benefitted whenever they choose to develop it. Therefore, he said the subject proposal includes the necessary engineering for that work and, upon successful transfer of property, permission to solicit bids for the utility package was also requested. In response to question, Mr. Conlon said utilities were already as far as the pads developed across the street from the future animal campus. He added that it was a benefit of waiting about two and a half years in the process for a Valley -wide animal shelter. Therefore, he said the work to be done now isn't as involved as it would have been previously. Further responding, Mr. Conlon answered that RBF had estimated 90 days to complete the project. He added that assistance from County staff would be very beneficial to support RBF in its application for splitting the parcel. He went on to say that a positive point to the process was that RBF's Bob Ross was presently on the advisory committee to the Coachella Valley Water District that was reviewing flood control provisions in the vicinity of the future animal campus. Upon inquiry about the process, Mr. Conlon said the parcel was already identified, it was being split equally with 5.25 acres each to Animal Samaritans and Riverside County Palm Desert Financing Authority. Commissioner Ortega stated that the current proposal was for the JPA to be the actual owner of facilities, and he presumed that would include the land. In response to question, he answered that the JPA could give, lease, or bequeath to a public agency; however, when it was explained to all the cities who joined the effort, it was presented that the JPA would own the facilities and would lease to an operator. Further, he said it was presented that the facilities would be leased to the County as operator for at least the initial three years; the advisory group could decide something different thereafter. He cautioned that if given to the County up front, it makes future decisions more difficult. He stated that the Authority Commission could give the facilities either to the City or the County, or leave it as is with the JPA. Mr. O'Connor commented that his first inclination was to have the County as the landholder. 6 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 President Kelly observed that this issue would be raised in all the projects being considered, and he believed it would be easier to administer if it went to the County or wherever it would be eventually. Mr. Strausz said the way one of these financings would typically be structured is that the Financing Authority would issue the bonds, own the facility, and then lease it to the County, creating a revenue stream to repay the bonds. He said the revenue stream coming from the County would come from its Capital Improvement Fund, which is with the Agency, then the County, presumably, could enter into an operating agreement with an operator, be it private or the County itself. Commissioner Ortega affirmed that the way it had been discussed/presented to date, the intent was to lease the facility to the County as an operator. Mr. Strausz stated that would be perfectly consistent with a typical financing agreement. Responding to President Kelly's question about how the Thousand Palms Library or Mecca Clinic would be handled, Mr. Strausz said that while the Financing Authority would own them, they would be leased to the County on a long-term basis, 30 or more years. He said that at the retirement of the bonds, the facilities would typically vest in the County as well. He pointed out this was the typical scenario. Vice President Wilson said the only concern he had was the ability to sell the idea to the Debt Advisory Committee. Commissioner Ortega clarified that his comments were meant to relate to the animal shelter. He asked whether this Authority could give the money to the County for its Mecca Clinic and ask the County to operate it. Mr. Strausz answered that if the Authority was the one to issue the bonds, the Authority then needs to create with the County a revenue stream to pay those bonds. He said that was typically accomplished one of two ways; the most common would be a lease of the facility, and the annual lease payment would, coincidentally, equal debt service on the bonds. The other way it was sometimes done was through an installment -sale contract where the County would purchase the facility from the Financing Authority; and the yearly installment purchase payments would equal debt service on the bonds. He added the reason installment -sale arrangements were Tess prevalent was because unless the County was using something other than its general fund to make the payments, there was a constitutional debt limitation; a lease was 7 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 an exception to the constitutional debt limit. Further, he responded that if it was going to be County general fund money, a lease was the recommended arrangement; all other aspects could be delegated to the County, i.e., designing and building its Mecca Clinic, noting that was the typical arrangement. Commissioner Ortega restated that based on the Authority's desires, technically, the Authority would own the facilities, and an agreement would be made to provide the funding for the County's designing/building same. Once completed, the County agrees to pay lease payments back to the Authority that are generated from the Capital Improvement Fund (Palm Desert Tax Increment). Mr. Strausz believed the goal would be that the Authority had nothing to do except be the paper owner of the facility; the engineering, design, and construction, etc., would all be delegated by the Financing Authority to the County. Mr. Gibson added that it would be similar to what was done with the Blythe Jail; it was a lease arrangement with the County for a number of years, then the County acquired the asset once paid off. In answer to Vice President Wilson, Commissioner Ortega said funds from a Redevelopment bond issue were utilized for the existing Sheriffs Substation, and it was leased to the County. The lease payments were generated from the capital improvement fund, and when the debt service was paid off, the agreement provided for transfer to the County. He said in that case, the Agency was the landowner and administered the project entirely. Responding to Commissioner Ortega's question about who would control the land transaction with Animal Samaritans, Mr. Strausz offered there was flexibility available for delegating that function to the County or a subcommittee. Commissioner Ortega suggested getting the engineering done in order to identify the land; once that was accomplished, a special meeting could be held to make the land transfer determination. Vice President Wilson concurred. Commissioner Ortega moved to, by Minute Motion: 1) Approve the subject contract with Robert Bein, William Frost & Associates, Palm Desert, California, and authorize the President to execute same; 2) authorize the funding and expenditure for the subject 8 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 services; 3) subject to finalization of land transfer, authorize advertisement for public bid upon completion, review, and approval of the engineering plans and bid documents. Vice President Wilson seconded the motion, and it carried by 3-0 vote, with Commissioner Parrish ABSENT. Commissioner Ortega went on to explain that while the action just taken awarded a contract, there was no budget to pay for it. However, if Vice President Wilson, in his capacity as County Supervisor, told RDA Executive Director Ortega to release money from the County Capital Improvement Fund (Increment) to the Authority, it could be accomplished. Supervisor Wilson agreed and would confirm same by way of a letter to the Agency. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None XI. REPORTS AND REMARKS 1. Responding to comments, Mr. Strausz said he was asked that since the County's Chief Administrative Officer couldn't attend today's meeting, if it was possible to designate a representative to attend instead. He responded that under the Joint Powers Agreement, it was not; the Agreement provides that the four Board Members are those with voting power. However, it would be an easy amendment to the Joint Powers Agreement to provide that in the event that one of the four Board Members was unable to attend a meeting, they could designate someone to sit in their place and have voting power. He said that would require a small amendment to the Agreement. Vice President Wilson said from his standpoint, he didn't need to delegate. However, he noted that Mr. O'Connor served as the Deputy County Executive Officer, looking after Eastern Riverside County; therefore, he would be the natural choice to represent Mr. Parrish on a regular basis. He suggested making the appropriate amendment that would name the Executive Officer or Eastern County Deputy be the representative for that position. Commissioner Ortega stated that such an amendment was already planned for consideration at the Authority's next meeting. 9 MINUTES SPECIAL MEETING OF THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY OCTOBER 7, 2002 Upon question, Mr. Strausz said an amendment would have to be presented to both the Agency and the County. 2. Vice President Wilson inquired about an action to be taken that would provide initiation of the process for issuing bond debt. He asked if the bond documents could be drafted on a parallel schedule to the engineering; when it was completed, the bond documents were ready to go. Commissioner Ortega answered that when the consultant's report was brought back to the Authority, there would also be a resolution naming bond counsel and underwriter. However, a lot of work would be accomplished in the interim. Responding to question, Mr. Strausz stated that since this was a Special Meeting, it was not possible to add approval of such action to this agenda. He offered that regular meetings provided that opportunity. Commissioner Ortega stated that if there was no objection from the Authority Commission, he had planned to use the Agency's consultants and bond counsel. Authority Commissioners concurred with Commissioner Ortega. 3. Amendment of Bylaws. Vice President Wilson suggested adopting a regular meeting schedule in order to move forward with the bond documents and any other business that needed to be accomplished. Commissioner Ortega moved to, by Minute Motion, reconsider Section VI, New Business Item A, Resolution No. RCPDFA 1. Motion was seconded by Vice President Wilson and carried by 3-0 vote, with Commissioner Parrish ABSENT. Commissioner Ortega moved to, by Minute Motion, amend Resolution No. RCPDFA 1, Bylaws of the Riverside County Palm Desert Financing Authority, by revising Article III - Meetings to provide for a regular meeting schedule on the first Monday of each month at 10:00 a.m. to be held in the North Wing Conference Room of the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California. Motion was seconded by Vice President Wilson and carried by 3-0 vote, with Commissioner Parrish ABSENT. 10 d w .w