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HomeMy WebLinkAbout2016-12-08MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, DECEMBER 8, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chair Jan C. Harnik Director Sabby Jonathan Director Van G. Tanner Director Susan Marie Weber Chair Robert A. Spiegel Present at 4:00 D.M. Reconvening: Director -elect Kathleen Kelly Director -elect Gina Nestande Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney William W. Strausz, Successor Agency Counsel Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Lori Carney, Director of Human Resources Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Anthony Baur, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING III. ADJOURN TO CLOSED SESSION Request for Closed Session: None DECEMBER 8, 2016 With Successor Agency Board concurrence, Chair Spiegel adjourned the meeting to Closed Session of the City Council at 3:01 p.m. He reconvened the meeting at 4:02 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None NOTE: During the Palm Desert City Council Meeting conducted immediately prior to this Successor Agency Meeting, declaration of the 2016 General Municipal Election was made, reorganization of the City Council and annual Mayoral Rotation occurred, with Jan C. Harnik being appointed as Mayor for the coming year and Sabby Jonathan appointed as Mayor Pro Tem (Chair and Vice Chair of the Successor Agency Board, respectively), and the rest of the roster was set, including Directors Kathleen Kelly, Gina Nestande, and Susan Marie Weber. VI. CONSENT CALENDAR A. MINUTES of the November 10 and November 24, 2016, Regular Meeting 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 - Warrants Dated 11/4/2016, 11/10/2016, and 11/18/2016. Rec: Approve as presented. 2 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 8, 2016 C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of September 2016 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon motion by Weber, second by Jonathan, and 5-0 vote of the Board of Directors of the Successor Agency (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None), the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS A. REQUEST FOR APPROVAL OF THE EXECUTION AND DELIVERY OF A BOND PURCHASE CONTRACT, AN OFFICIAL STATEMENT, AN ESCROW AGREEMENT, AND OTHER DOCUMENTS IN CONNECTION WITH THE SUCCESSOR AGENCY'S ISSUANCE EACH OF TAX ALLOCATION REFUNDING HOUSING AND NON -HOUSING BONDS, AND TAKING RELATED ACTIONS — 2017 SERIES H-B AND 2017 SERIES B, RESPECTIVELY. Ms. Moore explained this was the next step in the refunding debt for the Successor Agency, pointing out there is a number of agreements described in the staff report, but she can address any questions the Board may have, adding that the consultants were available as well. She said the Agency received Department of Finance (DOF) approval; therefore, the Agency can move forward. Staff hopes the issue will be sold in the middle of January, but that will depend on timing and based on issues that come up over that time. The bond market has moved away a little bit, but it will be reviewed as this process moves forward into January to ensure the optimal decision is made. Additionally, there is the option to pull issues 3 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 8, 2016 out of this full refunding in the event there is not a savings, but there has to be in order for the Successor Agency to issue refunding debt Vice Chair Jonathan questioned to what extent would the Agency be impacted by the rising rates. MR. KEN DIEKER, Del Rio Advisors, explained that when they started down this process there was approximately $49 million of total savings over the life of the bonds, but since the Election, rates have moved up significantly; the market has been volatile. However, in the last three days the market has come down 30 base points in rates. He said that the approximate savings when the staff report was submitted was about $35 million and it's down to $32 million today. The net present value savings on the non -housing side is approximately 8% and on the housing it's 4%. Therefore, it's still above the minimum 3% threshold, but they will be watching it very closely and look at each transaction individually as they move into January. Director Nestande noted she and Director Kelly met with the advisors and all their questions were answered. Vice Chair Jonathan moved to waive further reading and adopt: 1) Resolution No. SA- DA 061, authorizing the execution and delivery of a Bond Purchase Contract, an Official Statement, and Escrow Agreement, and other documents in connection with the Successor Agency's issuance of Tax Allocation Refunding (Housing) Bonds, and taking related actions; 2) Resolution No. SA -RDA 062, authorizing the execution and delivery of a Bond Purchase Contract, an Official Statement, and Escrow Agreement, and other documents in connection with the Successor Agency's issuance of Tax Allocation Refunding (Non -Housing) Bonds, and taking related actions. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None 4 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 8, 2016 C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT With Successor Agency Board concurrence, Chair Hamik adjourned the meeting at 6:46 p.m. i /1(1 JAN C. HARNIR, CHAIR ATTEST: HELLE D. KLASSEN, $'ECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 5