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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
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PRELIMINARY MINUTES
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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,
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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
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