HomeMy WebLinkAbout1999-06-24MINUTES
REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, JUNE 24, 1999
CIVIC CENTER COUNCIL CHAMBER
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
I. CALL TO ORDER
Chairman Spiegel convened the meeting at 4:05 p.m.
H. PLEDGE OF ALLEGIANCE - Vice Chairman Buford A. Crites
M. INVOCATION - Member Richard S. Kelly
IV. ROLL CALL
Present:
Member Jean M. Benson
Vice Chairman Buford A. Crites
Member Jim Ferguson
Member Richard S. Kelly
Chairman Robert A. Spiegel
Also Present:
Ramon A. Diaz, City Manager
David J. Erwin, City Attorney
Sheila R. Gilligan, Director of Community Affairs/City Clerk
Carlos L. Ortega, RDA Executive Director
Richard J. Folkers, ACM/Director of Public Works
John M. Wohlmuth, ACM/Director of Administrative Services
Patrick Conlon, Director of Building and Safety
Phil Drell, Director of Community Development
Paul S. Gibson, Director of Finance/City Treasurer
Rachelle D. Klassen, Deputy City Clerk
V. ORAL COMMUNICATIONS
None
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING NNE 24,1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
VI. CONSENT CALENDAR
A. MINUTES of the Regular Meeting of the Redevelopment Agency of June 10, 1999, and
Adjourned Joint Meeting of the City Council/Redevelopment Agency of June 7, 1999.
Rec: Approve as presented.
B. - Warrant Nos. 56RDA,
57RDA, 56DR, 57DR, 56HA, and 57HA.
Rec: Approve as presented.
Upon a motion by Member Kelly, second by Vice Chairman Crites, and unanimous vote of the
Redevelopment Agency Board, the Consent Calendar was approved as presented.
VII. CONSENT ITEMS HELD OVER
None
VIII. RESOLUTIONS
A. BFSOLUTION NO. 372 - A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING PAYMENT BY THE AGENCY FOR ALL OR PART OF THE
VALUE OF THE LAND FOR AND THE COST OF INSTALLATION AND
CONSTRUCTION OF A PERIMETER WALL AND LANDSCAPING FACILITIES
(DESERT WILLOW).
Mr. Ortega noted the staff report and stated this action effected the Agency's reimbursement
to the City for expenditures it made with regard to Desert Willow. Further, he said there was
a similar resolution on the City Council agenda for this meeting, which authorized the Agency
to pay.
Member Kelly moved to waive further reading and adopt Redevelopment Agency Resolution
No. 372. Motion was seconded by Member Ferguson and carried by unanimous vote.
IX. NEW BUSINESS
None
X. CONTINUED BUSINESS
None
2
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
XI. OLD BUSINESS
None
XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Mr. Ortega noted the property negotiation items listed for Closed Session consideration, as
well as the joint public hearings with the City and Housing Authority for the 1999/2000 Fiscal
Year Budget and with the City for the transfer of property to California State University.
B. AGENCY COUNSEL
None
Request for Closed Session -
Conference with real property negotiator pursuant to Government Code Section 54956.8:
1) Property: APN 632-410-031
Negotiating Parties:
Agency: Carlos L. Ortega/David Yrigoyen
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
2) Property: Land located in Section 4 - Desert Willow
Negotiating Parties:
Agency: Carlos L. Ortega
Property Owner: Palm Desert Redevelopment Agency
Under Negotiation: x Price x Terms of Payment
C. CHAIRMAN AND MEMBERS OF THE AGENCY
1. Desert Sands Unified School District (Member Jim Ferguson)
Member Ferguson reported that since the last Agency Board Meeting, he and Vice
Chairman Crites attended a DSUSD Board Meeting concerning the Redevelopment
Agency pass -through funds for Project Area No. 1 and how they were being spent
in the City of Palm Desert. He and Vice Chairman Crites extended an open
invitation for two members of their board and two members of the City Council to
meet and look at improvements for Palm Desert schools, and DSUSD agreed to take
action on that request at their July 8 meeting.
3
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Upon a motion by Vice Chairman Crites, second by Member Ferguson, and unanimous vote of the
Agency Board, Chairman Spiegel adjourned the meeting to Closed Session at 5:34 p.m. He reconvened
the meeting at 7:00 p.m.
XIII. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
XIV. PUBLIC HEARINGS
A. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE
DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 1999-2000 (JOINT
PUBLIC HEARING WITH THE PALM DESERT CITY COUNCIL AND PALM
DESERT HOUSING AUTHORITY).
Mr. Gibson noted the resolutions agendized for approval, covering the City, Redevelopment
Agency, and Housing Authority. Additionally, he said there needed to be approval of the
salary schedule and allocated positions, which he noted had been augmented according to
direction given at today's Study Session, and staff would make the appropriate changes to the
other accounts according to actions taken earlier in this meeting (i.e. Sheriff's contract, etc.).
He said the amended resolutions would be presented to the City Clerk's office for processing.
Mr. Gibson went on to report that the General Fund Budget reflected $28,650,000 in revenues
and $28,397,000 worth of expenditures, leaving a positive balance of some $250,000.
Mayor/Chairman/President Spiegel noted that Mr. Gibson normally utilized a conservative
approach to estimate revenues and a generous approach to calculate expenditures. In response
to Mayor/Chairman/President Spiegel's question about how Fiscal Year 1998/99 would end,
Mr. Gibson said he believed revenues would be a positive $3 million, but with the land
purchase completed this year, expenditures would absorb that amount ($3 million positive
without the land purchase).
Upon question by Mayor Pro-Tempore/Vice Chairman/Vice President Crites, Mr. Gibson
responded that approximate reserves at the end of FY 98/99 totaled $32 million worth of
General Fund excess funds, noting that there were also special revenue funds and other funds.
In response to Councilmember/Member/Commissioner Benson, Mr. Ortega said the
Redevelopment Agency owed the City $24.4 million. Mayor Pro-Tempore/Vice
Chairman/Vice President Crites commented that left the City with approximately $50 million
worth of reserves.
Mayor/Chairman/President Spiegel declared the public hearing wen and invited testimony —
FAVORING or OPPOSING the Fiscal Year 1999/2000 Budget. With no testimony offered, he
declared the public hearing sly.
4
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Mayor Pro-Tempore/Vice Chairman/Vice President Crites commended Palm Desert citizens
and City staff for the excellent job they had done to enable preparation, once again, of the
City's balanced budget and for its ample reserves. Council wholeheartedly concurred.
Mayor Pro-TemporeJVice Chairman/Vice President Crites moved to: 1) Waive further reading and
adopt Resolution No 99-53, adopting a City program and financial plan for the fiscal year July 1, 1999,
through June 30, 2000, with the changes so noted; 2) waive further reading and adopt Resolution
No. 99-54, establishing the appropriations limit for the 1999/2000 Fiscal Year; 3) waive further reading
and adopt Redevelopment Agency Resolution No. 3n, adopting a Redevelopment Agency program and
financial plan for the fiscal year July 1, 1999, through June 30, 2000; 4) waive further reading and adopt
Housing Authority Resolution No. HA-7, adopting a Housing Authority program and financial plan for
the fiscal year July 1, 1999, through June 30, 2000; 5) waive further reading and adopt Resolution
No 99-55, setting the salary schedule, salary ranges, and allocated classifications, as amended to reflect
the salary and position changes per direction given during today's Study Session. Motion was seconded
by Councilman/Member/Commissioner Ferguson and carried by unanimous vote.
Mayor Pro-Tempore/Vice Chairman/Vice President Crites extended special compliments to
two of his colleagues, Councilmember/Member/Commssioner Benson and
Councilman/Member/Commissioner Kelly, the two senior members of the
Council/Agency/Authority who he felt deserved credit for the City's financial health today,
resulting from their wise direction over the years.
B. CONSIDERATION OF APPROVAL OF THE DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN PALM DESERT REDEVELOPMENT AGENCY AND
CALIFORNIA STATE UNIVERSITY (JOINT PUBLIC HEARING WITH THE PALM
DESERT CITY COUNCIL).
Mr. Ortega stated the purpose of this public hearing was to receive public comment on the
Agency's recommendation to sell Agency property to California State University (CSU), and
more particularly, to comment on the Agency's justification for the recommended sales price.
He said a copy of both the agreement and required report, pursuant to Redevelopment Law,
had been made available to the public for more than two weeks, and this public hearing had
been advertised according to Redevelopment Law. Prior to the opening of the public hearing,
he wished to point out that the resolutions given to the Council/Agency differed from the ones
agendized in the manner of identifying 200 acres versus 40. Additionally, he said the
recommended action on the agenda, approving the Disposition and Development Agreement
(DDA), was actually incorporated within the resolutions; therefore, that specific action was
unnecessary (the resolutions provided authority to approve the DDA). In summary, he said
the DDA provided for the initial transfer of 40 acres to CSU for the location of what was
known as the Coachella Valley Center; ultimately, it granted an option to be exercised at a
later time by CSU, providing certain actions had transpired, for the transfer of an additional
160 acres to occur in phases. He said the DDA also provided that the Agency would have
certain review authority, particularly as additional land was transferred, with the requirement
5
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DUNE 24, 1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
that the land would eventually be transferred when there was a decision to build a full campus
to be named "California State University at Palm Desert." He noted there were still some
areas to be worked out with CSU; therefore, staff recommended opening the public hearing
for comments and continuing the public hearing, or at least continuing the item if it was
decided to close the public hearing.
Mayor/Chairman Spiegel declared the public hearing open and invited testimony in FAVOR of or
OPPOSED to the subject consideration of approval.
MR. MICHAEL BRACKEN, Executive Director of the Coachella Valley Economic
Partnership (CVEP), 73-710 Fred Waring Drive, Suite 205, Palm Desert, addressed the
Council. He said CVEP was a private -public partnership bringing together approximately 100
private sector corporations and the jurisdictions/municipalities of the Coachella Valley in an
effort to spur regional economic diversification through business recruitment and job creation.
He said the Partnership's overriding goal was to recruit companies into the region who created
jobs at or above the generally accepted living wage of $30,000-35,000 per year. Currently,
he said CVEP was working with over 20 companies, representing approximately 1,000 new
living wage jobs in the region, and as he worked with various companies-- manufacturers,
assemblers, technical support companies, and research and development firms-- one of the
concerns expressed most frequently was workforce preparation and development of
skilled/semi-skilled professionals, including tradespersons and technical managers. He said
with respect to that concern, it was obvious that the region lacked one key element-- a true,
four-year university to offer the corporate community and residents. To that extent, he stated
the CVEP Board of Directors offered a letter of support, as was forwarded to the City Clerk,
encouraging the City Council to complete the necessary legal documents with the State of
California to effectuate development of the new campus. In the way of assistance, he noted
that CVEP and its corporate partners, including Bill Powers, Kay Hazen, Dick Cromwell,
etc., had pledged their personal support, as well as his own experience with land acquisitions,
to step forward and assist both of the parties in any way deemed necessary to complete this
needed project.
Mayor Pro-Tempore/Vice Chairman Crites assumed that Mr. Bracken was equally willing to
be persistent on the other side of the subject acquisition in order to convince CSU of the
project's appropriateness. Mr. Bracken said he and Dr. Wilson had discussed that already,
and for what it was worth, noted he was a double graduate of CSU with a bachelor's and a
master's, in addition to just signing on as an adjunct professor there; he had a very personal
interest in seeing CSU expand into the Coachella Valley. Further, he commented that he
would do what he could with President Karnig and others to promote constructive negotiations
that would result in the campus being built.
With no further testimony offered, Mayor/Chairman Spiegel declared the public hearing closed
6
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING JUNE 24, 1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Councilman/Member Ferguson responded to Mr. Bracken's remarks, commenting that there
was very little disagreement over the recognition of the economic benefits of a four-year
university in the Coachella Valley. He felt that was why the wisdom of the Palm Desert City
Council prevailed a number of years ago when it offered CSU 200 acres of land that was
worth approximately $14 million. However, he noted discussions were somewhat stalled; it
had been five years, and he wanted to thank Mayor/Chairman Spiegel and the Council/Agency
Board members, particularly Mayor Pro-Tempore/Vice Chairman Crites, who had taken a
yeoman's effort over the past year to move things off of dead center. He went on to say
40 acres of land had been offered to initiate a CSU-Coachella Valley campus, 160 acres had
been offered once the CSU Board of Regents decided to site a four-year, freestanding
university in the region, totaling 200 acres, and approximately $6 million in financial
assistance had been offered in the form of a loan to help build the campus' first building. In
return for those items, he said the City/Agency only asked CSU that the campus be built
according to the master plan, and if they deviated beyond the master plan, that they did so in
consultation with the City of Palm Desert. Further, he asked Dr. Wilson directly tonight, and
anyone in the CSU hierarchy reading these Minutes, to please consider this offer and do so
in a timely manner, noting he was as anxious as anyone to see students behind desks on that
site, as were his colleagues. He wanted to see the process move forward and be finalized this
year, as he was sure Mayor/Chairman Spiegel was also, observing that the four-year facility
was needed for many reasons-- economic development and otherwise-- and the City, when
reviewing the actions of his predecessors and the present Council/Agency Board, had gone
leaps and bounds beyond the normal pale to accomplish that goal. He asked that the
University take that into consideration and return with a definitive answer to the offer.
Councilmember/Member Benson concurred wholeheartedly.
Mayor Pro-Tempore/Vice Chairman Crites added that there were many reasons for why things
couldn't be accomplished-- "We haven't done it that way before," and "That's not the State's
way of doing it...etc.," but those didn't take one anywhere except where they'd been in the
past. Therefore, he admonished if there was anything a university should be about, it ought
to be about the future, and it ought to be about figuring out how to get things done.
Councilman/Member Ferguson agreed, quoting a familiar saying of Mayor Pro-Tempore/Vice
Chairman Crites that went, "Let's quit finding out why we can't do things and find out how
we can."
Councilman/Member Ferguson moved to, by Minute Motion, continue consideration of the
Disposition and Development Agreement between the Palm Desert Redevelopment Agency and California
State University to the meeting of July 8, 1999. Motion was seconded by Mayor Pro-Tempore/Vice
Chairman Crites and carried by unanimous vote.
7
MINUTES
PALM DESERT REDEVELOPMENT AGENCY MEETING DUNE 24,1999
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
XV. ADJOURNMENT
Upon a motion by Vice Chairman Crites, second by Member Ferguson, and unanimous vote of the
Redevelopment Agency Board, Chairman Spiegel adjourned the meeting at 8:01 p.m.
ATTEST:
SHEILA R. LIGAN CRETARY TO THE
PALM DESERT REDS LOPMENT AGENCY
ROBERT A. SPIEGE , CHARivIAN
8