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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