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Home My WebLink AboutPrelim - SA-RDA - 12/13/2012DRAFT V �" � PRELIMINARY MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, DECEMBER 13, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CAL� TO ORDER - 3:00 P.M. Chair Spiegei convened the meeting at 3:00 p.m. II. ROLL CALL Present: Director Jean M. Benson Director Cindy Finerty Director Jan C. Harnik Vice Chair William R. Kroonen Chair Robert A. Spiegei Present at 4:00 p.m. Reconvening: Councilmember-elect Van G. Tanner Councilmember-elect Susan Marie Weber Also Present: John M. Wohlmuth, City Manager David J. Erwin, City Attorney Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development 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 Stephen Y. Aryan, Risk Manager Kevin Vest, Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 III. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: 42-148 Verdin Lane (APN 624-440-003), Palm Desert Negotiating Parties: Agency: John M. Wohimuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Justin and Patricia Mansker Under Negotiation: x Price x Terms of Payment 2) Property: 75-406 Orange Blossom Lane (APN 634-062-013), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Housing Authority Property Owner: Heika Pfeiffer Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 1 On a motion by Finerty, second by Benson, and 5-0 vote of the SuccessorAgency Board of Directors, Chair Spiegel adjourned the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:05 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None 2 PRELIMINARY MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DRAFT DECEMBER 13, 2012 Note: During the City Council Meeting conducted immediately prior to this Successor Agency Board of Directors Meeting, declaration of the 2012 General Municipal Election was made, and the annual City of Palm Desert Mayoral Rotation occurred, with Jan C. Harnik being appointed Mayor (Chair of the SuccessorAgency Board of Directors), and Jean M. Benson being appointed Mayor Pro Tem (Vice Chairof the SuccessorAgency Board). VI. CONSENT CALENDAR A. MINUTES of the Adjourned Regular and Regular Meetings of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency of November 15 and November 22, 2012. Rec: Approve as presented. 3 C�? CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 96SA, 100SA, 105SA, 109SA, and 112SA. Rec: Approve as presented. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of October 2012 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon a motion by Spiegel, second by Tanner, 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 3 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 IX. NEW BUSINESS A. REQUEST FOR APPROVAL OF THE SETTLEMENT, RELEASE, AND INDEMNITY AGREEMENT AMONG THE COUNTY OF RIVERSIDE, CITY OF PALM DESERT, AND THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (CONTRACT NO. C32470) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Wohlmuth noted the proposed Settlement Agreement, but for the public's benefit he explained that in 1992 the City of Palm Desert annexed Costco, at the time it was Home Base, and the development on the northwest comer of Dinah Shore Drive and Monterey Avenue, which was developed under the County of Riverside. As part of the agreement to annex, the City and County went into a CooperativeAgreementto exchange Redevelopment Fundsforsalestax. In order words, when it was developed the sales tax was going to the County of Riverside, and when the City annexed it, the sales tax would go to the City. Therefore, in this Cooperative Agreement, the City agreed to accept the sales tax and pay the County through a pass-through agreement an equal amount of sales tax from Redevelopment to the Health and Juvenile Fund at the County of Riverside. He said the Health and Juvenile Fund, funds the Regional Access Project (RAP) that provides grants throughout the Coachella Valley to Health and Juvenile Services. In 2003, the State of California, as part of their budget process passed what is now called the "Triple Flip." In other words, the State took sales tax and gave cities and counties back property tax. That process to exchange those funds created uncertainty in this calculation, and since the City would receive property tax in lieu of sales tax, original agreements didn't address how they would be affected by the "Triple Flip." In 2004, the State passed clean-up legislation that then did address howthe "Triple Flip" and Regional Access Project (RAP)would receive theirfunds. Staff never calculated the clean-up language "Triple Flip" in the pass-through payments to the County, and from that period forward to today, the amount owed from this calculation is $2.7 million. Staff is proposing a Settlement Agreement with the County, Palm Desert Successor Agency, and City to settle this $2.7 million by paying the County $2.7 million from the Redevelopment Trust Fund to the County of Riverside who will then forward the money to the Regional Access Project. This matter was considered and approved by the Oversight Board last week. However, the Department of Finance did not approve it, and something between disapproved and under consideration is the current status. He recommended the Council approve the proposed agreement and only authorize the City Manager/Executive Director to sign the Agreement once the matter is cleared by the Department of Finance, City of Palm Desert, and the County of Riverside. 0 PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 Councilman/Director Spiegel moved to, by Minute Motion, approve the Settlement, Release and Indemnity Agreement among the County of Riverside, City of Palm Desert, and the Successor Agency to the Palm Desert Redevelopment Agency regarding the Cooperative Agreement Among the County of Riverside, City of Palm Desert, and Palm Desert Redevelopment Agency (the "1992 Cooperative AgreemenY'), and authorize the City Manager/Executive Director to execute the Agreement, subject to clearance by the California Department of Finance. Mayor Pro TemNice Chair Benson commented she was a member of the Regional Access Project (RAP) Board, and the CityAttorney determined she didn't have a direct benefit from these funds and okayed to vote. Councilman/Director Tanner seconded the motion, and it carried by a 5-0 vote. X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSORAGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None � PRELIMINARY MINUTES DRAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DECEMBER 13, 2012 C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT On a motion by Tanner, second by Spiegel, and 5-0 vote of the Successor Agency Board of Directors, Chair Harnik adjourned the meeting at 6:12 p.m. JAN C. HARNIK, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY �