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HomeMy WebLinkAboutPrelim - SA - 05/09/2013V �� � PRELIMINARY MINUTES D R A F T REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENGY THURSDAY, MAY 9, 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 3:05 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 Rachelle D. Klassen, Secretary Bo Chen, City Engineer Russell Grance, Director of Building & Safety 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 Bill Hunley, Div. Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Casey Hartman, Batt. Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Kevin Vest, Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk PRELIMINARY MINUTES D R A F T SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 9, 2013 Iil. ADJOURN TO CLOSED SESSION Request for Closed Session: None With Successor Agency Board concurrence, Chair Harnik adjourned the meeting to Closed Session of the City Council at 3:06 p.m. She reconvened the meeting at 4:01 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 April 25, 2013, 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 - Warrant Nos. 206SA and 211 SA. Rec: Approve as presented. 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 2 PRELIMINARY MINUTES � - . SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 9, 2013 IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS, SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Mr. Wohimuth reported that the Successor Agency to the Palm Desert Redevelopment Agency, as required by law, perFormed a Due Diligence Review (DDR) for what are known as "RDA - Other Funds" about two months ago. This was in addition to the separate DDR performed for Housing Funds about six months ago. Through its auditor, Palm Desert identified in the DDR - RDA-Other Funds that it owed the State of California slightly over $8 million. However, State Department of Finance's (DOF) determination was that Palm Desert owed $47.5 million. Palm Desert had already been communicating with DOF staff, indicating that we felt they'd made a mistake. So in the Meet & Confer process with DOF over these different figures, Palm Desert asked DOF to: 1) Correct the $17 million mistake; 2) allow Palm Desert to keep an additional $15 million cash on hand in order to pay debt service and protect Project Area No. 1 bonds. He explained that this had to do with the "cap" on Project Area No. 1. In the Meet & Confer process, DOF agreed to the $17 million mistake but disagreed on Palm Desert's need to retain $15 million cash. Therefore, at this time, Palm Desert owes the State of California $28.2 million, which will be wired to the Riverside County Auditor-Controller tomorrow, along with a letter explaining our position. Following the Meet & Confer, he'd also sent a letter of objection to DOF on the $15 million issue and "cap" on Project Area No. 1 bonds; DOF's position is that the "cap" is gone, which Palm Desert requested be confirmed in its letter to DOF. Summarizing, he said that Palm Desert is sending $28.2 million to the County to be spread amongst the taxing entities and will continue to work with DOF on the disposition and payment of Project Area No. 1 bonds. Responding to question, he said the City has enough money to make the payment; however, 3 PRELIMINARY MINUTES D RAFT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING MAY 9, 2013 while not an immediate issue of making debt service payments, it will become one in future years. He added that staff will be analyzing all of this and providing information to the Successor Agency Board in hopes of receiving the Finding of Completion (FOC) from the State, which is the ultimate goal so that existing bond proceeds can be used for identified projects (e.g. Carlos Ortega Villas Housing Project, Portola Interchange, Utility Undergrounding, etc.). Additionally, he said staff will continue to review health of the bonds, how much is needed for repayment, and whether or not there is adequate revenue that will be generated to the RPTTF (Redevelopment Property Tax Trust Fund). Further, staff will be discussing priorities with City Council/Successor Agency Board about where the bond proceeds can be used without adding new projects to the bond list. It was his understanding that The Desert Sun was preparing an upcoming article on these developments. B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ADJOURNMENT On a motion by Spiegel, second by Tanner, and 5-0 vote of the Successor Agency Board, Chair Harnik adjourned the meeting at 6:03 p.m. JAN C. HARNIK, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY C!