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Home My WebLink About2013-01-10MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, JANUARY 10, 2013 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Harnik convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chair Jean M. Benson Director Robert A. Spiegel Director Van G. Tanner Director Susan Marie Weber Chair Jan C. Harnik Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney William L. Strausz, Successor Agency Counsel Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs J. Luis Espinoza, Assistant Finance Director Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 owl A. Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): 1) City of Palm Springs v. All Persons Interested, etc., et al, Riverside County Superior Court, Case No. INDIO 51124 With Successor Agency Board of Directors' concurrence, Chair Harnik adjourned the meeting to Closed Session at 3:01 p.m. She reconvened the meeting at 4:03 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES, of the Regular December 13 and December 27, 2012, Meetings of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 117SA, 122SA, 127SA, 132SA, 134SA, and 136SA. Rec: Approve as presented. Upon a motion by Spiegel, second by Weber, and 5-0 vote of the Successor Agency Board of Directors, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None 2 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING IX. NEW BUSINESS JANUARY 10, 2013 A. RECEIVE AND FILE OVERSIGHT BOARD -APPROVED TRANSMITTAL OF THE DUE DILIGENCE REVIEW FOR THE NON -HOUSING FUND AND ACCOUNT BALANCES OF THE FORMER PALM DESERT REDEVELOPMENT AGENCY IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34179.5. Ms. Moore stated that on January 7, 2013, the Oversight Board reviewed the first Due Diligence Review (DDR) for all Other Funds of the former Redevelopment Agency. It was determined, based on the review under the DDR, there was about $8 million that could be transmitted to the taxing entities. The Oversight Board requested it be submitted to the Department of Finance (DOF) by January 15, 2013, which staff planned to do by the next day. In that review, staff looked at all the cash that was on hand for the Redevelopment Agency and looked at projected revenues and expenditures for the next period of time. Therefore, in this case, for the DDR, staff projected out through the end of the life of what would have been the project areas for the Redevelopment Agency. Staff determined it needed to retain some of the cash on hand in order to meet the obligations that exist as of right now. Staff will be submitting that information to the DOF, and they have until April 1, 2013, to respond to the City as to their determination of staffs review. On April 1, if the DOF does not agree, staff will have five days to either request to Meet and Confer or actually remit the money. She offered to answer any questions. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. Director Spiegel moved to, by Minute Motion, receive and file the Due Diligence Review for the Non -Housing Fund and Account Balances of the former Palm Desert Redevelopment Agency ("Other Funds DDR") pursuant to Health and Safety Code Section 34179.5. Motion was seconded by Weber and carried by a 5-0 vote. Chair Harnik stated the work that has gone into the unraveling of the Redevelopment Agency is amazing and thanked everyone involved, because it was overwhelming. 3 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING. JANUARY 10, 2013 B. RECEIVE AND FILE DEPARTMENT OF FINANCE DETERMINATION LETTER RELATIVE TO THE DUE DILIGENCE REVIEW FOR THE LOW- AND MODERATE -INCOME HOUSING FUND IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34179.5. Ms. Moore stated in October 2012, the Oversight Board approved the Due Diligence Review (DDR) for the Low- and Moderate Income Housing Fund (LMIHF). At that time, it was reviewed and determined it needed to retain the cash on hand to meet the obligations that the Housing Fund, or under the Redevelopment Agency, the Enforceable Obligations that the Department of Finance has agreed to. However, when the review was submitted, the DOF felt that because some of the requests were based on projections, they did not agree with the Successor Agency retaining the cash. She said there was $12.9 million that was on hand in the LMIHF, and based on the DOF final determination, which was after a Meet and Confer Session, they required the funds to be remitted within five days, which has been done. This item was to bring the Council up to date with respect to that review and it is final. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. Director Spiegel moved to, by Minute Motion, receive and file the Department of Finance Letter of Determination relative to the Due Diligence Review ("DDR") for the Low- and Moderate - income Housing Fund ("LMIHF") pursuant to Health and Safety Code Section 34179.5. Motion was seconded by Weber and carried by a 5-0 vote. C. RECEIVE AND FILE DEPARTMENT OF FINANCE DETERMINATION LETTER RELATIVE TO THE THIRD RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS3) FOR THE PERIOD OF JANUARY 1 - JUNE 30, 2013. Ms. Moore stated staff submitted the ROPS3 for consideration, and the Department of Finance (DOF) rejected several items on the list, some of which were understandable, because of subsequent legislation from when it was originally submitted. Some of those items were projects that could be paid for by bond funds. She said staff understood, however, it freed up dollars and some administrative costs that could be applied to another line item that wasn't an Enforceable Obligation. Therefore, staff asked the DOF if it could replace those items on the ROPS Schedule, then held a Meet and Confer Session, and the DOF did not agree. She said Palm Desert will have to try to make those dollars up in future allocations. Director Spiegel noted the Oversight Board reviewed this item and made a motion to receive and file; therefore, he will make the same motion. 4 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 Director Spiegel moved to, by Minute Motion, receive and file the Department of Finance Letter of Determination relative to the third Recognized Obligation Payment Schedule (ROPS3). Motion was seconded by Weber. Director Weber stated that on Schedule 2 of the DDR, under the January 31 line item, it states, "...the assets associated are owned by the City." She asked if that was referring to the land, and if the value of the land was $12,092 million. Additionally, in the same line item, what was meant by the statement, "...improvements were transferred to the owner." Ms. Moore explained the $12,092,882 figure► only represented the value of the improvements for the Aquatic Center and street improvements on Fred Waring Drive. Further responding, she said improvements are defined by the cost of the pool and building. She went on to say the land for the pool was already owned by the City. Chair Hamik called for the vote, and the motion carried by a 5-0 vote. X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR 1) Oversiaht Board Update - State Department of Finance (DOF) Mr. Wohlmuth recalled for the Board Members that they approved a Settlement Agreement with the County of Riverside for approximately $2.7 million of Regional Access Project (RAP) funds that would be paid from the former Redevelopment Agency to Riverside County, representing a period of time between 2006 to date. After the Oversight Board approved that action, DOF suspended it. He spoke with DOF this morning on the RAP Agreement, and it will hopefully be sorted out soon. Second is the issue of the 11.5-acre parcel transfer for UCR (University of California, 5 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013 meg Riverside), which is being reviewed, that Palm Desert believed to be an existing obligation going to UCR for their Medical School and Ambulatory Medical Clinic. This would have the purpose of both providing services to Palm Desert and Coachella Valley residents, as well as Medical School student and intern training at that facility. He has been working closely with DOF on this property transfer and hoped it will clear soon. In answer to question, he hoped both of these items would be approved by DOF well before the Finding of Completion is rendered. He said it sounded as though DOF has all the information it needs on the UCR transfer, and this morning he talked with them at length about the RAP Agreement. Both items have been sent up the chain of command at DOF. B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ORAL COMMUNICATIONS - C None XV. ADJOURNMENT Upon motion by Spiegel, second by Tanner, and unanimous vote of the Successor Agency Board of Directors, Chair Hamik adjourned the meeting at 5:00 p.m. ATTEST: JAN C. ARNIK, CHAIR RAIHEL % D. KLASSEN, StCRETARY' SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 6