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HomeMy WebLinkAboutPrelim - RDA - 05/21/09PRELIMINARY MINUTES - ADJOURNED REGULAR - PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, MAY 21, 2009 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. II. ROLL CALL Present: Member Jean M. Benson Member Jim Ferguson Vice Chairman Cindy Finerty Member Richard S. Kelly Chairman Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Patrick Conlon, Director of the Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs John Rios, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk 111. ADJOURN TO CLOSED SESSION Request for Closed Session: None PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 21, 2009 With Agency Board concurrence, Chairman Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. \I= V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Special Redevelopment Agency Meeting of May 7, 2009, and the Regular Redevelopment Agency Meeting of May 14, 2009. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 220RDA, 233RDA, 241 RDA, 248RDA, 254RDA, 220-Housing, 234-Housing, 241-Housing, 249-Housing, 255-Housing, 235HA, and 256HA. Rec: Approve as presented. C. REQUEST FOR APPROVAL of a Contract with PMC for the Preparation of a Housing Relocation Plan and Replacement Housing Plan for Sagecrest Apartments Located at 73-775 Santa Rosa Way, Palm Desert (Contract No. R28980). Rec: By Minute Motion: 1) Approve the subject contract with PMC, Rancho Cordova, California (formerly known as Pacific Municipal Consultants), in an amount not to exceed $29,820 plus $2,500 for reimbursables for the preparation, adoption, and implementation of a Housing Relocation Plan and a Replacement Housing Plan for Sagecrest Apartments; 2) authorize the Executive Director to finalize and execute the contract and any documents necessary to perform the services needed to adopt and implement the Relocation Plan and Replacement Housing Plan — funds are available in Account No. 870-4688-464-4001. 2 PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 21, 2009 D. REQUEST FOR ACCEPTANCE OF WORK for the Project Known as California Villas Phase "B" Site Renovation (Contract No. HA23650C) (Doug Wall Construction, Inc., Bermuda Dunes, CA) (Joint Consideration with the Palm Desert Housing Authority). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. Upon a motion by Benson, second by Finerty, and 5-0 vote of the Agency Board, the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER None Vill. RESOLUTIONS None IX. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTYKNOWN AS 43-840 BLUEBERRY LANE (APN 634-061-038) - DESERT ROSE, PALM DESERT. Member Ferguson moved to, by Minute Motion: 1) Authorize acquisition of the subject property for the purpose of retaining affordability covenants and resale, if necessary, in anticipation of expiration of the 60-day Right of Refusal Period; 2) approve a Silent Second Trust Deed in an amount necessary to secure an affordable housing cost pursuant to Redevelopment Law for either a direct sale or Agency sale; 3) authorize the Executive Director to execute any documents necessary to facilitate this transaction — funds are available in the Housing Set -aside Fund. Motion was seconded by Finerty and carried by a 5-0 vote. X. CONTINUED BUSINESS None XI. OLD BUSINESS None 3 PRELIMINARY MINUTES DRAFT ADJOURNED REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 21, 2009 XII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE DRAFT 2009-2010 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) ACTION PLAN AND THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM DESERT AND COUNTY OF RIVERSIDE FOR NEIGHBORHOOD STABILIZATION PROGRAM FUNDING (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated the Neighborhood Stabilization Program (NSP) addressed foreclosures in the City and special allocation of Community Development Block Grant (CDBG) funding through U.S. Department of Housing and Urban Development (HUD). She said HUD conducted an analysis with the County's help to identify the areas with the greatest need. Tier I funding was for cities that had large needs with an allocation of more than $1 million, and Tier II funding was for those cities in the County that had an allocation less than $1 million. In order to apply, funding had to be in an application of more than $1 million. It was suggested that the cities that had Tier II funding, but didn't reach the $1 million allocation, combine together and complete a joint application. In order to do that, the City needs to enter into a Memorandum of Understanding (MOU) with the County as outlined by HUD. As presented, the City will consider an enhanced first-time homebuyer program with up to $75,000 in assistance, but only to purchase foreclosed homes, which would only eliminate housing from a foreclosed market. Chairman/Mayor Spiegel stated the City would be receiving $326,000, but not many people would benefit from the program if $75,000 was given to each home buyer that qualified. Ms. Moore agreed; however, that's how the City was allocated in this round. She said there are subsequent rounds of NSP, but they are competitive and not a direct allocation to the City, which will actually have to be applied for. She said staff, Code Compliance, and the Planning Department will look for projects that it may apply, but it required a minimum request of $5 million. Further responding, she said the City will only provide the amount necessary to make the house affordable under the definition of the law, but only up to $75,000 per home buyer. Vice Chairman/Mayor Pro Tern Finerty asked what types of strings were attached from the Federal Government. Ms. Moore responded the program will run similar to CDBG funding with reporting requirements on the lead agency, which was the County. The strings attached are less than what the State dictated for the City's own affordable housing. She said there was only a 15-year covenant for CI PRELIMINARY MINUTES ADJOURNED REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 21, 2009 affordability; the state requirement was 45 years. Funding was set up this way to encourage the elimination of the foreclosure and abandoned properties in the City. Chairman/Mayor Spiegel declared the public hearing open and invited anyone who wished to come forward to speak on the subject matter to do so at this time. With no testimony offered, he declared the public closed. Member/Councilman Kelly wondered if it was worthwhile for the City to go through the whole operation for the amount of money it would receive. Ms. Moore explained there were only five cities in the County that were not allocated more than $1 million, and if those five cities did not join together to apply for this funding, that money could revert to the County for use Countywide, which meant that if Temecula, Moreno Valley, or any of those areas needed the funding, it could go there. The cities that would like to participate are Palm Desert, Coachella, and Palm Springs; these cities want to keep the money in the Valley and approach this as a regional Coachella Valley effort, even though it would not help Palm Desert tremendously. She said Coachella had an allocation of more than $950,000, but they cannot apply unless they had a joint application of more than $1 million. Further responding, she said Palm Desert would technically be helping Coachella to obtain their funding, and Palm Desert would not be hurting other cities if it didn't participate. However, Palm Desert was approached by Palm Springs and asked by Coachella if it was willing to participate. Member/Councilman Ferguson believed the stature of Palm Desert would probably lend some gravity toward the application whether or not Palm Desert benefitted. He said it might cause staff extra paperwork with the City only receiving a small amount of money; however, he didn't view this as a bad thing. Member/Councilman Ferguson moved to waive further reading and adopt: 1) City Council Resolution No. 09-35, approving the draft 2009-2010 Neighborhood Stabilization Program (NSP) Action Plan; 2) Redevelopment Agency Resolution No. 559, approving the draft 2009-2010 Neighborhood Stabilization Program (NSP) Action Plan; By Minute Motion: 3) Approve the Memorandum of Understanding (MOU) between the City of Palm Desert and County of Riverside for NSP Funding (Contract No. C28970); 4) Authorize the City Manager/Executive Director to finalize and execute the NSP Plan and MOU Joint Agreement. Motion was seconded by Kelly and carried by a 4-1 vote, with Finerty voting NO. 5 PRELIMINARY MINUTES DRAFT ADJOURNED REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 21, 2009 XIII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AGENCY None XIV. ADJOURNMENT With Agency Board concurrence, Chairman Spiegel adjourned the meeting at 4:59 p.m. ATTEST: ROBERTA. SPEIGEL, CHAIRMAN RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY N.