HomeMy WebLinkAboutPrelim - SA-RDA - 01/10/2013DRAFT
PRELIMINARY MINUTES
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
Request for Closed Session:
PRELIMINARY MINUTES DRAFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013
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
VII1. RESOLUTIONS
None
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SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013
IX. NEW BUSINESS
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 eash 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 staff's 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.
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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, itwas 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") forthe 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.
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PRELIMINARY MINUTES
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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
Letterof 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 Harnik 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
XI11. REPORTS, REMARKS, SUCCESSORAGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
1) Oversiqht Board �date - 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. Afterthe 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,
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PRELIMINARY MINUTES DRAFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING JANUARY 10, 2013
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 Harnik adjourned the meeting at 5:00 p.m.
JAN C. HARNIK, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
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