2012 03 07 OB�. .•� .. I�N.anim Lb
s, y
�cE`y OF
9w
OVERSIGHT BOARD FOR SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
AGENDA
La Quinta City Council Chambers
78-495 Calle Tampico, La Quinta, California
Special Meeting
Wednesday, March 7, 2012
4:00 p.m.
Beginning Resolution No. 2012-001
CALL TO ORDER
1. Roll Call
2. Pledge of Allegiance
PUBLIC COMMENT
This is the time set aside for public comment on any matter not listed on the agenda.
Please complete a "Request to Speak" form and limit your comments to three minutes.
When addressing the Oversight Board, please state your name and address.
CONFIRMATION OF AGENDA
PRESENTATIONS
1. Introduction of Board Members and Staff
2. Swearing in of Board Members
BUSINESS ITEMS
1 . Election of Chair and Vice -Chair
2. Designation of Contact Person for Department of Finance Inquiries
3. Consideration of a Resolution Establishing the Date, Time and Location for
Meeting of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency
4. Consideration of a Resolution Adopting Bylaws and a Resolution Adopting Rules
of Procedure of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency
INFORMATIONAL ITEMS
1. Purpose of Oversight Board
2. Overview of Former La Quinta Redevelopment Agency
CHAIR AND BOARD MEMBERS' ITEMS
ADJOURNMENT
DECLARATION OF POSTING
I, Lori Lafond, Executive Assistant of the City of La Quinta, do hereby declare that the
foregoing Agenda for Oversight Board for Successor Agency, to La Quinta
Redevelopment Agency meeting of March 7, 2012, was posted on the outside entry to
the Council Chamber, 78-495 Calle Tampico, the bulletin board at the La Quinta Post
Office located at 51-321 Avenida Bermudas, La Quinta, California and 78-630
Highway 111, La Quinta, California on March 1, 2012.
Dated: March 1, 2012
� � f
Public Notices
The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is needed
for the hearing impaired, please call the City Clerk's office at (760) 777-7123, twenty-four (24) hours
in advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the Oversight Board, arrangements
should be made in advance by contacting the City Clerk's office at (760) 777-7123. A one (1) week
notice is required.
If background material is to be presented to the Oversight Board during a Board meeting, please be
advised the ten (10) copies of all documents, exhibits, etc., must be supplied to the Oversight Board
Secretary for distribution. It is requested that this take place prior to the beginning of the meeting.
Any writings or documents provided to a majority of the Oversight Board regarding any item on this
agenda will be made available for public inspection at the City Clerk's counter at City Hall located at
78-495 Calle Tampico, La Quinta, CA 92253, during normal business hours.
Oversight Board Agenda 2 March 7, 2012
OVERSIGHT BOARD MEETING DATE: March 7, 2012
ITEM TITLE: Election of Chairperson and Vice
Chairperson
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: '
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Elect one member to serve as Chairperson and elect one member to serve as Vice
Chairperson for the Oversight Board of Successor Agency to La Quinta Redevelopment
Agency ("Oversight Board").
BACKGROUND AND OVERVIEW:
A Chairperson for the Oversight Board must be selected to preside over the Oversight
Board's meetings. A Vice Chair should also be selected to preside over the meeting
when the Chair is unavailable. Staff recommends that one-year terms be adopted.
Recommended Voting Procedures:
All actions must be taken on a majority vote of the total membership of the Board.
Given that the Oversight Board will have seven (7) members, four (4) affirmative votes
are needed to pass a motion. Given the lack of a Chairperson or Vice Chairperson,
staff will open and close nominations to the Oversight Board for the Chairperson. The
Secretary will distribute ballots. The results of the balloting, including whom each
Oversight Board Member chose for Chairperson and Vice Chairperson will be read
aloud. A vote will be taken and the Chairperson and Vice Chairperson will be elected.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Oversight Board are:
1. Elect one member to serve as Chairperson, and elect one member to serve as
Vice Chairperson for the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency; or
2. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss
Interim Executive Director of the
Successor Agency to La Quinta
Redevelopment Agency
2
f
AGENDA CATEGORY:
OVERSIGHT BOARD MEETING DATE: March 7, 2012 C �-
BUSINESS SESSION: _
ITEM TITLE: Designation of Contact Person for
Department of Finance Inquiries CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Designate the Interim Executive Director of the Successor Agency as the contact
person for Department of Finance inquiries regarding Oversight Board actions.
BACKGROUND AND OVERVIEW:
California Health & Safety Code Section 34179(f) requires that all actions taken by the
Oversight Board be posted on the successor agency's website for review by the
California Department of Finance ("DOF"). Health & Safety Code Section 34179(h)
further provides that the Oversight Board actions are not effective for three business
days, pending review by the DOF. If the DOF exercises its right to review the action,
then it has ten days to approve the action or return it to the Oversight Board for
reconsideration. The Health & Safety Code requires the Oversight Board to formally
designate an official to whom the DOF may make inquiries regarding Oversight Board
actions.
Staff recommends designating the Interim Executive Director of the Successor Agency
as the contact person for the Oversight Board. Upon receiving an inquiry, the Interim
Executive Director would then direct the inquiry to the appropriate staff person to
formulate a response, and then the Interim Executive Director of the Successor Agency
would forward the response to the DOF.
Once the Oversight Board designates an official, staff will transmit the appropriate
contact information to the Department of Finance.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Oversight Board are:
1. Designate the Interim Executive Director of the Successor Agency as the
contact person for Department of Finance inquiries regarding Oversight Board
actions; or '
2. Do not designate the Interim Executive Director of the Successor Agency as the
contact person for Department of Finance inquiries regarding Oversight Board
actions
3. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss
Interim Executive Director of the
Successor Agency to La Quinta
Redevelopment Agency
l+J
OVERSIGHT BOARD MEETING DATE: March 7, 2012
ITEM TITLE: Consideration of a Resolution Establishing
the Date, Time and Location for Meetings of the
Oversight Board of Successor Agency to La Quinta
Redevelopment Agency
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution Establishing the Date, Time and Location for Meetings of the
Oversight Board of Successor Agency to La Quinta Redevelopment Agency ("Oversight
Board").
BACKGROUND AND OVERVIEW:
On December 29, 2011, the California Supreme Court upheld ABx1 26, which
dissolves all redevelopment agencies in California, effective February 1, 2012. All the
assets, properties, contracts, leases, and records of the former redevelopment agency
were automatically transferred by operation of law to a Successor Agency ("SA") on
February 1, 2012.
On January 3, 2012, the City of La Quinta elected to serve as the SA to the La Quinta
Redevelopment Agency. The SA is then responsible for the winding down of the
Agency's obligations subject to the monitoring by and approval of an Oversight Board.
Each SA will have its own oversight board until 2016, when all oversight boards will
be consolidated into one county -wide Oversight Board. In order for the Oversight
Board to review and approve actions of the SA, it will need to schedule a regular date,
time and location for meetings.
Therefore, staff is recommending that the Oversight Board meetings be held on the
Wednesday after the first and third Tuesday of the month beginning Wednesday,
March 7, 2012. The recommended meeting place is City of La Quinta City Hall. Staff
will recommend the cancellation of meetings where there is no pressing need for the
meeting.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Oversight Board are:
1. Adopt a resolution establishing the date, time and location for meetings of the
Oversight Board of Successor Agency to La Quinta Redevelopment Agency; or
2. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manger
Approved for submission by:
Mark Weiss
Interim Executive Director of the
Successor Agency to La Quinta
Redevelopment Agency
N
RESOLUTION NO. OB 2012-
A RESOLUTION OF THE OVERSIGHT BOARD OF
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY ESTABLISHING THE DATE, TIME AND
LOCATION OF OVERSIGHT BOARD MEETINGS
WHEREAS, the Oversight Board for Successor Agency to La Quinta
Redevelopment Agency ("Oversight Board" as applicable) has met and conferred to
determine a date, time and location for Oversight Board meetings.
NOW THEREFORE, BE IT RESOLVED by the Oversight Board, as
follows:
SECTION 1. The Oversight Board meetings shall be on the
and the meetings shall be open to the public. Meetings may be
adjourned by the presiding officer or by the Secretary if a quorum is not present.
SECTION 2. The location of the Oversight Board meetings shall be at
La Quinta City Hall, 78-495 Calle Tampico, La Quinta, California.
SECTION 3. Special meetings may be called by the Chairperson or by
four (4) board members, and notice thereof shall be provided in accordance with
the Brown Act.
PASSED, APPROVED, AND ADOPTED at a special meeting of the
Oversight Board of Successor Agency to La Quinta Redevelopment Agency, held
on this the 7t' day of March, 2012 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
, Chairperson
Oversight Board of Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
Lori Lafond
Oversight Board Secretary
a�
�� OF TtTti'�
OVERSIGHT BOARD MEETING DATE: March 7, 2012 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Consideration of a Resolution Adopting
Bylaws and a Resolution Adopting Rules of Procedure CONSENT CALENDAR:
of the Oversight Board of Successor Agency to La STUDY SESSION:
Quinta Redevelopment Agency
PUBLIC HEARING:
RECOMMENDATION
Adopt a Resolution of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency adopting Bylaws for the Oversight Board; and
Adopt a Resolution of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency adopting Rules and Procedures for the Oversight Board.
FISCAL IMPLICATIONS:
The Successor Agency has incurred administrative expenses in the preparation of the
materials being presented to the Oversight Board. The Successor Agency is entitled to
reimbursement for the costs related to administration of the Oversight Board.
BACKGROUND AND OVERVIEW:
On February 1, 2012, all assets, properties, contracts, leases, and records of the
former redevelopment agency were transferred by operation of law to the Successor
Agency. An Oversight Board has been established pursuant to Health and Safety Code
Section 34179 to assist in the close out and wind down of the dissolved
redevelopment agency.
Rules of Procedures and Bylaws will need to be adopted in order to facilitate the
process of the meetings and establish the rules for the Oversight Board. Staff has
prepared and attached to this report suggested Rules of Procedures and Bylaws for the
Board's consideration.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Oversight Board include:
1. Adopt a Resolution of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency approving the Bylaws for the Oversight Board; and
Adopt a Resolution of the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency approving the Rules of Procedure for the Oversight
Board; or
2. Do not adopt a Resolution of the Oversight Board of Successor Agency to La
Quinta Redevelopment Agency approving the Bylaws for the Oversight Board;
and
Do not adopt a Resolution of the Oversight Board of Successor Agency to La
Quinta Redevelopment Agency approving the Rules of Procedure; or
3. Provide staff with alternative direction.
Respectfully submitted,
Deborah Powell
Economic Development/Housing Manager
Approved for submission by:
r � o
Mark Weiss
Interim Executive Director of the
Successor Agency to La Quinta
Redevelopment Agency
2
RESOLUTION NO. OB 2012-
A RESOLUTION OF THE OVERSIGHT BOARD OF
SUCCESSOR AGENCY TO LA QUINTA
REDEVELOPMENT AGENCY ADOPTING BYLAWS
WHEREAS, the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency ("Oversight Board", as applicable) has been established to
direct the Successor Agency to take certain actions to wind down the affairs of the
Redevelopment Agency in Accordance with the California Health and Safety Code;
and
WHEREAS, the Oversight Board desires to adopt bylaws and
regulations for the general operation of the .Oversight Board, including but not
limited to the designation of officers and conduct of meetings.
NOW, THEREFORE, the Oversight Board of Successor Agency to La
Quinta Redevelopment Agency does hereby resolve as follows:
SECTION 1. The Bylaws of the Oversight Board, a copy of which is
attached hereto and incorporated herein as Exhibit "A", are hereby approved.
SECTION 2. The Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED and ADOPTED at a special meeting of the
Oversight Board of Successor Agency to La Quinta Redevelopment Agency held
this 7t' day of March, 2012 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Chairperson
Oversight Board of Successor Agency
to La Quinta Redevelopment Agency
Resolution No. OB 2012-
Adoptioh of Bylaws
Adopted: March 7, 2012
Page 2
ATTEST:
LORILAFOND
Oversight Board Secretary
EXHIBIT "A"
OVERSIGHT BOARD OF SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
[See following document]
BYLAWS OF THE
TO LA
ARTICLE I - THE OVERSIGHT BOARD
Section 1. Name of Authority
The official name shall be the "Oversight Board of Successor Agency to La
Quinta Redevelopment Agency" (herein referred to as "Oversight Board").
Section 2. Place of Meeting
The office and regular place of meeting of the Oversight Board shall be at the
La Quinta City Hall, 78-495 Calle Tampico, La Quinta, California. The Oversight
Board may hold its meetings at such other locations as the Oversight Board may
from time to time designate by resolution, in the order of adjournment, or notice of
call of any special meeting.
Section 3. Powers
The Oversight Board shall be vested with all the rights, powers, duties,
privileges, and immunities established by the California Health and Safety Code
Sections 34179, 34180, and 34181.
ARTICLE II- OFFICERS
Section 1. Officers and Officials
The officers of the Oversight Board shall be composed of seven members.
The members shall elect one of their members as the chairperson and select one of
their members as the vice chairperson. All Oversight Board members shall be
selected pursuant to the guidelines set forth in the California Health and Safety
Code 34179. Other officials acting as its staff shall be the Executive Director of
the Successor Agency, a secretary, and such other employees of the Successor
Agency/and or City of La Quinta as deemed necessary by the Executive Director of
the Successor Agency.
Section 2. Chairperson
The Chairperson of the Oversight Board shall preside at all meetings of the
Oversight Board.
Section 3. Vice -Chairperson
The Vice -Chairperson shall perform the duties of the Chairperson in the
absence or incapacity of the Chairperson.
Section 4. Secretary
The Executive Director of the Successor Agency shall designate a person to
serve as the Secretary to the Oversight Board. The Secretary shall keep the
records of the Oversight Board, shall act as secretary at meetings of the Oversight
Board, shall record all votes, keep a record of the proceedings of the Oversight
Board in a journal of proceedings to be kept for such purpose and shall perform all
duties incident to the office. The Secretary shall maintain a record of all official
proceedings of the Oversight Board and its programs. In the absence of the
Secretary, the Executive Director to the Successor Agency shall appoint a member
of the staff to act as Secretary.
Section 5. Vacancies
When a seat of the Oversight Board becomes vacant, the position will be
filled by a member appointed by the agency who originally appointed the former
member. Such appointments are to take place within 60 days of the creation of
the vacancy. The Governor may appoint individuals to fill a member position that
remains vacant for more than 60 days.
Section 6. Compensation
Oversight Board member shall serve without compensation or reimbursement
for expenses.
`i
RESOLUTION NO. OB 2012-
A RESOLUTION OF THE OVERSIGHT BOARD OF
SUCCESSOR AGENCY TO LA QUINTA
REDEVELOPMENT AGENCY ADOPTING RULES
OF PROCEDURE FOR MEETINGS AND RELATED
FUNCTIONS, .ACTIVITIES, AND REGADRDING
TIMES AND LOCATION OF REGULAR MEETINGS
WHEREAS, the Oversight Board of Successor Agency to La Quinta
Redevelopment Agency ("Oversight Board" as applicable) has been established to
direct the Successor Agency to take certain actions to wind down the affairs of the
Redevelopment Agency in accordance with the California Health and Safety Code;
and
WHEREAS, the Oversight Board desires to adopt rules of procedure for
the general operation of the Oversight Board, including but not limited to the
conduct of meetings and approval of contracts in accordance with the California
Health and Safety Code.
NOW, THEREFORE, the Oversight Board of Successor Agency to La
Quinta Redevelopment Agency does hereby resolve as follows:
SECTION 1. The Rules of Procedure of the Oversight Board of
Successor Agency to La Quinta Redevelopment Agency, a copy of which is
attached hereto and incorporated herein as Exhibit "A", are hereby approved.
SECTION 2. The Oversight Board Secretary shall certify to the
adoption of this Resolution.
PASSED, APPROVED and ADOPTED at a special meeting of the
Oversight Board of Successor Agency to La Quinta Redevelopment Agency held
this 7`" day of March, 2012 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Chairperson
Oversight Board of Successor Agency
to La Quinta Redevelopment Agency
Resolution No. OB 2012-
Adoption of Bylaws
Adopted: Marcy 7, 2012
Page 2
ATTEST:
LORILAFOND
Oversight Board Secretary
EXHIBIT "A"
OVERSIGHT BOARD OF SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
[See following document]
RULES OF PROCEDURE OF THE
OVERSIGHT BOARD OF SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY
ARTICLE 1 - MEETINGS
Section 1. Regular Meetings
Regular meetings of the Oversight Board shall be held Ito be determined at
this Board's first meeting►. The meetings will be held in the Council Chambers at
City Hall, La Quinta, California, or at such other locations as the Oversight Board
may from time to time designate by resolution or in the notice of call of any special
meeting. In the event a day of meeting shall be a legal holiday, said meeting shall
be held on the next business day unless otherwise determined by the Oversight
Board.'
Section 2. Special Meetings
The Chairperson of the Oversight Board may, when he or she deems it
necessary, and shall, upon the written request of four members of the Oversight
Board, call a special meeting of the Oversight Board for the purpose of transacting
the business designated in the call. The means and method for calling such special
meeting shall be as set forth in the Ralph M. Brown Act, California Government
Code Section 54950 et seq., as it now exists or may hereafter be amended (the
"Brown Act").
Section 3. Adjourned Meetings
The board members may adjourn any meeting to a time and place specified
in the order of adjournment. When an order of adjournment of any meeting fails to
state an hour at which the adjourned meeting is to be held, it shall be held at the
hour specified for regular meetings. In adjourning any meeting, there shall be
compliance with all procedures of the Brown Act.
Section 4. Quorum
Four (4) board members of the Oversight Board shall constitute a quorum for
the purpose of conducting its business and exercising its powers and for all other
purposes, but a smaller number may adjourn from time to time until a quorum is
obtained. Every official act of the Oversight Board shall be adopted by a majority
vote except in situations where the law calls for a vote of greater than a majority.
A "majority vote" shall mean a majority of the full Board (i.e., four affirmative
votes).
Section 5. Order of Business
(a) Agenda. The order of business of each meeting shall be as
contained in the Agenda prepared by the Oversight Board Secretary. The Agenda
shall be a listing by topic of the subjects which shall be taken up for consideration
in the following order:
(i) Call to Order
(ii) Roll Call; Pledge of Allegiance
(iii) Public Comment
(iv) Confirmation of Agenda
(v) Approval of Minutes
(vi) Presentations
(vii) Written Communications
(viii) Consent Calendar
(ix) Business Session
(x) Study Session
(xi) Reports and Informational Items
(xii) Chair and Board members' items
(xiii) Adjournment
All resolutions shall be in writing and designated by number, reference to
which shall be inscribed in the minutes and an approved copy of each resolution
filed in the official book of resolutions of the Oversight Board.
(b) Preparation of Agenda: The staff of the Successor Agency shall
be responsible for the preparation of the Agenda. The Oversight Board, by a
majority vote, may direct a matter to be placed upon a future agenda.
(c) Delivery of Agenda: The Agenda and related staff reports will
ordinarily be delivered to the board members via e-mail on the Thursday preceding
the meeting to which it pertains.
The Agenda and staff reports shall also be available to the general public at
the time it is delivered to the board members.
2
(d) Roll Call: Before proceeding with the business of the Oversight
Board, the Oversight Board Secretary shall call the roll of the board members and
the names of those present shall be entered in the minutes. The order of roll call
shall be alphabetical with the Chairperson called last.
(e) Approval of Minutes: Unless requested by a majority of the
Oversight Board, minutes of the previous meeting may be approved without public
reading if the Secretary has previously furnished each board member with a copy
thereof.
(f) Public Comment: Pursuant to Government Code 54954.3, each
agenda for a regular meeting shall provide an item entitled "Public Comment." The
purpose of such item shall be to provide an opportunity for members of the public
to directly address the Oversight Board on items of interest to the public that are
within the subject matter jurisdiction of the Oversight Board. In order to assure
that the intent of Government Code 54954.3 is carried out, three (3) minutes is the
amount of time allocated for each individual speaker.
(g) Consent Agenda: Items of routine nature, and non-
controversial, shall be placed on the consent agenda. All items may be approved
by one blanket motion upon unanimous consent. Prior to review of the consent
agenda, any board member may request that any item be withdrawn from the
consent agenda for separate consideration.
(h) Call to Order: The meeting of the Oversight Board shall be
called to order by the Chairperson, or in his/her absence, by the Vice Chairperson.
The person calling meetings to order shall be referred to as the "Presiding Officer."
In the absence of both the Chairperson and the Vice Chairperson, the meeting shall
be called to order by the secretary to the Oversight Board and the Board shall
select a Temporary Chairperson, who shall serve as the Presiding Officer for the
meeting.
(i) Participation of Presiding Officer: The Presiding Officer may
move, second, and debate, subject only to such limitations of debate as are
imposed on all board members, and he or she shall not be deprived of any of the
rights and privileges of a board member by reason of his or her acting as Presiding
Officer. However, the Presiding Officer is primarily responsible for the conduct of
the meeting. If he or she desires to personally engage in extended debate on
questions before the Oversight Board, he or she should consider temporarily turning
his or her role as Presiding Officer over to another board member.
(j) Question to be Stated: The Presiding Officer shall verbally
restate each question immediately prior to calling for the vote. Following the vote,
the Presiding Officer shall verbally announce whether the question carried or was
C-7
defeated. The Presiding Officer may also publicly state the effect of the vote for
the benefit of the audience before proceeding to the next item of business.
(k) Maintenance of Order: The Presiding Officer is responsible for
the maintenance of order and decorum at all times. No person is allowed to speak
who has not first been recognized by the Presiding Officer. All questions and
remarks shall be addressed to the Presiding Officer.
Section 6. Rules, Decorum and Order
(a) Points of Order: The Presiding Officer shall determine all Points
of Order subject to the right of any member to appeal to the Oversight Board. If
any appeal is taken, the question shall be, "Shall the decision of the Presiding
Officer be sustained?" in which event a majority vote shall govern and conclusively
determine such question of order.
(b) Decorum and Order - Board members:
(i) Any board member desiring to speak shall address the
Presiding Officer and, upon recognition by the Presiding Officer, shall
confine himself or herself to the question under debate.
(ii) A board member, once recognized, shall not be
interrupted while speaking unless called to order by the Presiding
Officer; unless a Point of Order is raised by another board member; or
unless the speaker chooses to yield to questions from another board
member.
(iii) Any board member called to order while he or she is
speaking shall cease speaking immediately until the question of order
is determined. If ruled to be in order, he or she shall be permitted to
proceed. If ruled to be not in order, he or she shall remain silent or
shall alter his or her remarks so as to comply with rules of the
Oversight Board.
(iv) Board members shall accord the utmost courtesy to each
other, to city or Oversight Board employees, and to the public
appearing before the Oversight Board and shall refrain at all times from
rude and derogatory remarks, reflections as to integrity, abusive
comments and statements as to motives and personalities.
(v) Any board member may move to require the Presiding
Officer to enforce the rules and the affirmative vote of a majority of
the Oversight Board shall require him or her to so act.
M
(vi) Except where specifically authorized by Oversight Board
action, no board member shall make any statement or give the
appearance or indicate in any way that he or she is representing the
Oversight Board.
(c) Decorum and Order - Employees: Members of the
administrative staff of the Oversight Board shall observe the same rules of
procedure and decorum applicable to board members. The Executive Director shall
ensure that all Oversight Board employees observe such decorum. Any staff
members, including the Executive Director, desiring to address the Oversight Board
or members of the public shall first be recognized by the Presiding Officer. All
remarks shall be addressed to the Presiding Officer and not to any one individual
board member or member of the public.
(d) Decorum and Order - Public: Members of the public attending
Oversight Board meetings shall observe the same rules of order and decorum
applicable to the Oversight Board. Any person making impertinent and slanderous
remarks or who becomes boisterous while addressing the Oversight Board or while
attending the Oversight Board meeting shall be removed from the room and such
person may be barred from further audience before the Oversight Board.
Unauthorized remarks from the audience, stamping of feet, whistles, yells and
similar demonstrations shall not be permitted by the Presiding Officer, who may
direct the sergeant -of -arms to remove such offenders from the room. Aggravated
cases shall be prosecuted on appropriate complaint signed by the Presiding Officer.
(e) Enforcement of Decorum: As set forth in Government Code
Section 54957.9, in the event that any meeting is willfully interrupted by a group
or groups of persons so as to render the orderly conduct of such meeting
unfeasible and order cannot be restored by the removal of individuals who are
willfully interrupting the meeting, the board members may order the meeting room
cleared and continue in session. Only matters appearing on the agenda may be
considered in such a session. Duly accredited representatives of the press or other
news media, except those participating in the disturbance, shall be allowed to
attend any session held pursuant to this section. Nothing in this section shall
prohibit the Oversight Board from establishing a procedure for readmitting an
individual or individuals not responsible for willfully disturbing the orderly conduct
of the meeting.
(f) Conflict of Interest: All board members are subject to the
provisions of California Law, such as Chapter 7, Title 9, of the California
Government Code, relative to conflicts of interest, and to conflicts of interest codes
adopted by the Oversight Board.
(g) Limitation of Debate: No board member normally should speak
more than once upon any one subject until every other board member choosing to
speak thereon has spoken. No member shall speak for a longer time than five
minutes each time he has the floor, without approval of a majority vote of the
Oversight Board.
(h) Dissents and Protests: Any board member shall have the right
to express dissent from or protest to any action of the Oversight Board and have
the reason entered in the minutes. If such dissent or protest is desired to be
entered in the minutes, this should be made clear by language such as, "I would
like the minutes to show that I am opposed to this action for. the following
reasons ... "
(i) Procedures In Absence of Rules: In the absence of a rule herein
to govern a point or procedure, Robert's Rules of Order, Newly Revised, shall be
used as a guide.
(j) Rulings of Presiding Officer Final Unless Overruled: In presiding
over Oversight Board meetings, the Presiding Officer shall decide all questions of
interpretation of these rules, points of order or other questions of procedure
requiring rulings. Any such decision or ruling shall be final unless overridden or
suspended by a majority vote of the board members present and voting.
Section 7. Addressing the Oversight Board
(a) Manner of Addressing the Oversight Board: Any member of the
public desiring to address the Oversight Board shall proceed to the podium and wait
to be recognized by the Presiding Officer. After being recognized, he shall state his
name and address for the record.
All remarks and questions shall be addressed to the Presiding Officer and not
to any individual board member, staff member or other person. No person shall
enter into any discussion without being recognized by the Presiding Officer.
(b) Time Limitation: For time limitation applicable to public
comment, see Article III, Section (5). This limitation shall not apply to any staff
presentation.
(c) Addressing the Oversight Board After Motion Is Made: After a
motion has been made, no member of the public shall address the Oversight Board
without first securing permission by a majority vote of the Oversight Board.
(d) Limitations Regarding Public Comments and Reports: The
making of oral communications to the Oversight Board by any member of the public
during the "Public Comments" portion of the agenda shall be subject to the
following limitations:
11
At any time, before or after the oral communication is commenced,
the Presiding Officer may if he or she deems it preferable, direct that
the communication be made instead either to the Executive Director or
other appropriate staff member during regular business hours, or in
writing for subsequent submittal to board members.
(e) Persons Authorized to be Within Platform: No person except
Oversight Board Officials shall be permitted behind the Oversight Board dais
without permission or consent of the Presiding Officer.
Section 8. Motions
(a) Processing of Motions: When a motion is made and seconded,
it shall be stated by the Presiding Officer before debate. A motion so stated shall
not be withdrawn by the mover without the consent of the person seconding it.
(b► Motions Out of Order: The Presiding Officer may at any time,
by majority consent of the board members, permit a board member to introduce a
resolution or motion out of the regular agenda order.
(c) Division of Question: If the question contains two or more
divisional propositions, the Presiding Officer may, and upon request of a board
member shall (unless appealed), divide the same.
(d) Procedure of Motions:
Board, no motion shall be entertained
precedence in the following order:
When a motion is before the Oversight
except the following, which shall have
Adjourn
Fix hour of adjournment
Table
Limit or terminate discussion
Amend
Postpone
(e) Motion to Adjourn: (not debatable) A motion to adjourn shall be
in order at any time, except as follows:
When repeated without intervening business or discussion.
When made as an interruption of a board member while speaking.
When discussion has been ended, and vote on a motion is pending,
and
While a vote is being taken.
7
(f) Motion to Fix Hour of Adjournment: Such a motion shall be to
set a definite time at which to adjourn and shall be debatable and shall be
amendable by unanimous vote.
(g) Motion to Table: A motion to table shall be used to temporarily
by-pass the subject. A motion to table shall be undebatable and shall preclude all
amendments or debate of the subject under consideration. If the motion shall
prevail, the matter may be "taken from the table" at any time prior to the end of
the next regular meeting.
(h) Motion to Limit or Terminate Discussion: Such a motion shall
be used to limit or close debate on, or further amendment to, the main motion and
shall be undebatable. If the motion fails, debate shall be reopened; if the motion
passes, a vote shall be taken on the main motion.
(i) Motion to Amend: A motion to amend shall be discussed only
as to the amendment. A motion to amend an amendment is possible but no
additional motions to further amendments may be made. Any amendment shall
relate to the original motion and not introduce a different matter. Amendments
shall be voted first, then the main motion as amended. Alternatively, the original
maker of the main motion may agree to revise the original motion and if the second
agrees to second the revised motion, the Oversight Board may vote on the main
motion as revised.
Section 9. Voting. Procedure
(a) Voting Procedure: In acting upon every motion, the vote shall
be taken by roll call or by electronic vote. The vote on each motion shall then be
entered in full upon the record. If the vote is by roll call, the order of voting shall
be alphabetical with the Chairperson voting last. The Secretary shall call the
names of all members seated when a roll call vote is ordered or required. Members
shall respond 'aye,' 'no' or 'abstain.'
Any action or motion of the board shall require four (4) affirmative votes.
Any member may change his or her vote before the next order of business.
(b) Failure to Vote: A board member who abstains due to reasons
of conflict shall, for purpose of the item under consideration, be considered as if
absent. A board member abstaining for reasons other than, conflict shall be
counted as present for purposes of a quorum and such abstentions are counted
with the majority. A board member who leaves the dais solely to avoid
participating in a specific item shall, in absence of a conflict, be counted as if they
were present but abstaining and such abstentions are also counted with the
majority.
0
(c) Reconsideration: Any board member who voted with the
majority may move a reconsideration of any action at the same meeting. If the
motion to reconsider passes, then the original item may be reconsidered at that
time or agendized for the next meeting which meets any applicable noticing
requirements. After a motion for reconsideration has once been acted upon, no
other motion for reconsideration thereof shall be made without unanimous consent
of the Oversight Board.
Section 9. Resolutions
(a) Definitions: The Actions of the Oversight Board will take one of
three forms: "resolution," "minute order," and "motion" (thereafter recorded by
minute entry). Resolutions, in addition to being referenced in the minutes, will be
recorded by a separate document, numbered in sequence and preserved in a
separate set of books. Such "resolutions" are used for various reasons, such as
when specifically required by law, when needed as a separate evidentiary
document to be transmitted to another governmental agency, or where the
frequency of future reference back to its contents warrants a separate document
(with the additional "whereas" explanatory material it often recites) to facilitate
such future reference and research.
A "minute order" as used locally denotes an Oversight Board action which is
recorded simply by an item entry in the minutes of the meeting at which it was
accomplished, and no separate document is made to memorialize it. However,
sequential numbering shall be assigned to each motion to facilitate indexing.
(b) Resolutions Prepared In advance: Where a resolution has been
prepared in advance, the procedure shall be: motion, second, discussion, vote
pursuant to methods prescribed above, and result declared. It shall not be
necessary to read a resolution in full or by title except to identify it. Any member
may require that the resolution be read in full.
(c) Resolutions Not Prepared In Advance: Where a resolution has
not been prepared in advance, the procedure shall be to instruct the Executive
Director of the Successor Agency to prepare a resolution for presentation at the
next Oversight Board meeting.
(d) Urgency Resolutions: In matters of urgency, a resolution may
be presented verbally in motion form together with instructions for written
preparation for later execution. After the resolution has been verbally stated, the
voting procedure described above shall be followed.
N
ARTICLE II - MISCELLANEOUS
Section 11. Amendments to Bylaws and Rules of Procedure
The Bylaws and Rules of Procedure of the Oversight Board may be amended
by the Oversight Board at any regular or special meeting by a vote of the majority
of the Oversight Board members, provided that no such amendment shall be
adopted unless at least seven days' written notice thereof has been previously
given to all board members of the Oversight Board. Such notice shall identify the
section or sections of the Bylaws and Rules of Procedure proposed to be amended.
Section 12. Rules Directory
To the extent not required by State laws, these rules of procedure shall be
considered directory only; and compliance herewith shall not be considered
mandatory or jurisdictional.
10
AGENDA CATEGORY:
OVERSIGHT BOARD MEETING DATE: March 7, 2012
BUSINESS SESSION:
ITEM TITLE: Purpose of Oversight Board
CONSENT CALENDAR:
STUDY SESSION:
R1134COM"..Tlaq
INFORMATIONAL: I_
BACKGROUND AND OVERVIEW:
California Health & Safety Code Section 34179 (Attachment 1) requires the
formation of oversight boards to the successor agencies of the former
redevelopment agencies; defines the composition of the oversight board; defines
what constitutes a quorum; that an oversight boards must comply with the Ralph
M. Brown Act, the California Public Records Act, and the Political Reform Act of
1974; and that oversight boards have a fiduciary responsibility to holders of
enforceable obligations and the taxing entities that benefit from distributions of
property tax and other revenue.
The La Quinta Redevelopment had an active redevelopment and economic
development operation, and an active affordable housing operation. When the
Agency was suspended on February 1, 2012, the City of La Quinta elected to
assume the Agency's redevelopment and economic development obligations, and
the La Quinta Housing Authority elected to assume the Agency's housing
obligations. The La Quinta Housing Authority is governed by the La Quinta City
Council.
Health & Safety Code Section 34180 (Attachment 2) defines the first successor
agency actions to be reviewed and approved by an oversight board. Specific
subsections that either do or may in the future apply to the City of La Quinta
include:
"(c) Setting aside amounts in reserve as required by bond indentures,
trust indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds;
(g) Establishment of the Recognized Obligation Payment Schedule
(this will be on the Board's next agenda); and
(h) A request by the successor agency to enter into an agreement
with the city ... that formed the redevelopment agency that it is
succeeding". (Staff believes this may apply to La Quinta and is
working to further define this item).
Health & Safety Code Section 34181 requires an oversight board to direct the
successor agency to take certain actions, which are listed in Attachment 2.
Staff recommends the next Oversight Board meeting take place on Wednesday,
April 4, 2012, due to the complexity of the agenda items. The agenda items to be
forwarded for consideration and approval include:
1. Recognized Obligation Payment Schedules ("ROPS") - one for the
period January 2012 through June 2012; and one for the period of July 2012
through December 2012. These schedules list the financial obligations of the
former redevelopment agency, including payments related to contracts and
agreements; project -specific costs; bond payments; and other miscellaneous
payments.
2. Successor Agency Administrative Budget - AB 26 provides for an
administrative allowance to allow a successor agency to wind down the former
redevelopment agency and administer an oversight board. The allowance covers
staff time, attorney and consultant time, rent, supplies, audit fees, record -keeping
costs, etc. The law allows 5% of the amount listed on the fiscal year 2011-2012
BOPS for administrative costs, and then 3% of the ROPS for the following fiscal
years.
3. Coral Mountain Disposition and Development Agreement ("DDA") -
The Agency concluded a DDA with Coral Mountain Partners, LP ("Developer") that
provides up to $29,000,000 of Agency Housing funds to facilitate the
development of 176 apartment dwellings that will be affordable to very low, low
and moderate income family households. The parties negotiated this agreement
over a period of three years and executed the agreement on January 4, 2011. In
addition, the Agency will lease, for a minimum of 55 years (with the option of two
ten year extensions), a 9.5 acre parcel that was purchased with Housing Funds for
this development. The land asset has been transferred to the La Quinta Housing
Authority who has assumed the responsibility to implement this obligation. The
Developer is securing 4% Tax Credits to fund the difference between the Agency's
investment and total development cost. The City of La Quinta will be holding a
2
TEFRA (Tax Equity and Fiscal Responsibility Act) hearing on April 3, 2012 to
confirm the tax exempt status for the mortgage revenue bond financing that
accompanies the 4% Tax Credits. Staff will be requesting that the Oversight Board
confirm that the Board does not wish to direct the City as Successor Agency to
attempt to terminate the agreement in under the provisions of Health & Safety
Code Section 34181(d) or (f).
4. Torre Nissan Owner Participation Agreement ("OPA") - The Agency
approved an OPA with Torre Nissan that provides bond funds to fund a portion of
cost to remodel and expand this automobile dealership. Staff will review this
transaction with the Oversight Board and seek their concurrence to a minor
amendment to the performance schedule that may become necessary in order to
allow the completion of the improvements that are already underway.
5. Former La Quinta Redevelopment Agency Financial Status - Staff will
review the financial status, bond debt, assets, and actions of the former La Quinta
Redevelopment Agency so that the Oversight Board has the information and
background needed to review the Agency's transactions.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for Submission by:
ka.3 J2-
Mark Weiss
Interim Executive Director of the
Successor Agency to La Quinta
Redevelopment Agency
Attachments: 1. California Health & Safety Code Section 34179
2. Health & Safety Code Section 34181
3
ATTACHMENT
Chapter 4. Oversight Boards
34179. (a) Each successor agency shall have an oversight board
composed of seven members. The members shall elect one of their members
as the chairperson and shall report the name of the chairperson and other
members to the Department of Finance on or before January 1, 2012.
Members shall be selected as follows:
(1) One member appointed by the county board of supervisors.
(2) One member appointed by the mayor for the city that formed the
redevelopment agency.
(3) One member appointed by the largest special district, by property tax
share, with territory in the territorial jurisdiction of the former redevelopment
agency, which is of the type of special district that is eligible to receive
property tax revenues pursuant to Section 34188.
(4) One member appointed by the county superintendent of education to
represent schools if the superintendent is elected. If the county superintendent
of education is appointed, then the appointment made pursuant to this
paragraph shall be made by the county board of education.
(5) One member appointed by the Chancellor of the California
Community Colleges to represent community college districts in the county.
(6) One member of the public appointed by the county board of
supervisors.
(7) One member representing the employees of the former redevelopment
agency appointed by the mayor or chair of the board of supervisors, as the
case may be, from the recognized employee organization representing the
largest number of former redevelopment agency employees employed by
the successor agency at that time.
(8) If the county or ajoint powers agency formed the redevelopment
agency, then the largest city by acreage in the territorial jurisdiction of the
former redevelopment agency may select one member. If there are no cities
with territory in a project area of the redevelopment agency, the county
superintendent of education may appoint an additional member to represent
the public.
(9) If there are no special districts of the type that are eligible to receive
property tax pursuant to Section 34188, within the territorial jurisdiction of
the former redevelopment agency, then the county may appoint one member
to represent the public.
(10) Where a redevelopment agency was formed by an entity that is both
a charter city and a county, the oversight board shall be composed of seven
members selected as follows: three members appointed by the mayor of the
city, where such appointment is subject to confirmation by the county board
of supervisors, one member appointed by the largest special district, by
196
—29—Ch. 5
property tax share, with territory in the territorial jurisdiction of the former
redevelopment agency, which is the type of special district that is eligible
to receive property tax revenues pursuant to Section 34188, one member
appointed by the county superintendent of education to represent schools,
one member appointed by the Chancellor of the California Community
Colleges to represent community college districts, and one member
representing employees of the former redevelopment agency appointed by
the mayor of the city where such an appointment is subject to confirmation
by the county board of supervisors, to represent the largest number of former
redevelopment agency employees employed by the successor agency at that
time.
(b) The Governor may appoint individuals to fill any oversight board
member position described in subdivision (a) that has not been filled by
January 15, 2012, or any member position that remains vacant for more
than 60 days.
(c) The oversight board may direct the staff of the successor agency to
perform work in furtherance of the oversight board's duties and
responsibilities under this part. The successor agency shall pay for all of
the costs of meetings of the oversight board and may include such costs in
its administrative budget. Oversight board members shall serve without
compensation or reimbursement for expenses.
(d) Oversight board members shall have personal immunity from suit
for their actions taken within the scope of their responsibilities as oversight
board members.
(e) A majority of the total membership of the oversight board shall
constitute a quorum for the transaction of business. A majority vote of the
total membership of the oversight board is required for the oversight board
to take action. The oversight board shall be deemed to be a local entity for
purposes of the Ralph M. Brown Act, the California Public Records Act,
and the Political Reform Act of 1974.
(f) All notices required by law for proposed oversight board actions shall
also be posted on the successor agency's Internet Web site or the oversight
board's Internet Web site.
(g) Each member of an oversight board shall serve at the pleasure of the
entity that appointed such member.
(h) The Department of Finance may review an oversight board action
taken pursuant to the act adding this part. As such, all oversight board actions
shall not be effective for three business days, pending a request for review
by the department. Each oversight board shall designate an official to whom
the department may make such requests and who shall provide the
department with the telephone number and e-mail contact information for
the purpose of communicating with the department pursuant to this
subdivision. In the event that the department requests a review of a given
oversight board action, it shall have 10 days from the date of its request to
approve the oversight board action or return it to the oversight board for
reconsideration and such oversight board action shall not be effective until
approved by the department. In the event that the department returns the
196
Ch. 5 — 30 —
oversight board action to the oversight board for reconsideration, the
oversight board shall resubmit the modified action for department approval
and the modified oversight board action shall not become effective until
approved by the department.
(i) Oversight boards shall have fiduciary responsibilities to holders of
enforceable obligations and the taxing entities that benefit from distributions
of property tax and other revenues pursuant to Section 34188. Further, the
provisions of Division 4 (commencing with Section 1000) of the Government
Code shall apply to oversight boards. Notwithstanding Section 1099 of the
Government Code, or any other law, any individual may simultaneously be
appointed to up to five oversight boards and may hold an office in a city,
county, city and county, special district, school district, or community college
district.
0) Commencing on and after July 1, 2016, in each county where more
than one oversight board was created by operation of the act adding this
part, there shall be only one oversight board appointed as follows:
(1) One member may be appointed by the county board of supervisors.
(2) One member may be appointed by the city selection committee
established pursuant to Section 50270 of the Government Code. In a city
and county, the mayor may appoint one member.
(3) One member may be appointed by the independent special district
selection committee established pursuant to Section 56332 of the
Government Code, for the types of special districts that are eligible to receive
property tax revenues pursuant to Section 34188.
(4) One member may be appointed by the county superintendent of
education to represent schools if the superintendent is elected. If the county
superintendent of education is appointed, then the appointment made
pursuant to this paragraph shall be made by the county board of education.
(5) One member may be appointed by the Chancellor of the California
Community Colleges to represent community college districts in the county.
(6) One member of the public may be appointed by the county board of
supervisors.
(7) One member may be appointed by the recognized employee
organization representing the largest number of successor agency employees
in the county.
(k) The Governor may appoint individuals to fill any oversight board
member position described in subdivision 0) that has not been filled by July
15, 2016, or any member position that remains vacant for more than 60
days.
(1) Commencing on and after July 1, 2016, in each county where only
one oversight board was created by operation of the act adding this part,
then there will be no change to the composition of that oversight board as
a result of the operation of subdivision (b).
(m) Any oversight board for a given successor agency shall cease to exist
when all of the indebtedness of the dissolved redevelopment agency has
been repaid.
ATTACHMENT
34180. All of the following successor agency actions shall first be
approved by the oversight board:
(a) The establishment of new repayment terms for outstanding loans
where the terns have not been specified prior to the date of this part.
(b) Refunding of outstanding bonds or other debt of the former
redevelopment agency by successor agencies in order to provide for savings
or to finance debt service spikes; provided, however, that no additional debt
is created and debt service is not accelerated.
(c) Setting aside of amounts in reserves as required by indentures, trust
indentures, or similar documents governing the issuance of outstanding
redevelopment agency bonds.
(d) Merging of project areas.
(e) Continuing the acceptance of federal or state grants, or other forms
of financial assistance from either public or private sources, where assistance
is conditioned upon the provision of matching funds, by the successor entity
as successor to the former redevelopment agency, in an amount greater than
5 percent.
(1) (1) If a city, county, or city and county wishes to retain any properties
or other assets for future redevelopment activities, funded from its own
funds and under its own auspices, it must reach a compensation agreement
with the other taxing entities to provide payments to them in proportion to
their shares of the base property tax, as determined pursuant to Section
34188, for the value of the property retained.
(2) If no other agreement is reached on valuation of the retained assets,
the value will be the fair market value as of the 2011 property tax lien date
as determined by the county assessor.
(g) Establishment of the Recognized Obligation Payment Schedule.
(h) A request by the successor agency to enter into an agreement with
the city, county, or city and county that formed the redevelopment agency
that it is succeeding.
(i) A request by a successor agency or taxing entity to pledge, or to enter
into an agreement for the pledge of, property tax revenues pursuant to
subdivision (b) of Section 34178.
34181. The oversight board shall direct the successor agency to do all
of the following:
(a) Dispose of all assets and properties of the former redevelopment
agency that were funded by tax increment revenues of the dissolved
redevelopment agency; provided, however, that the oversight board may
instead direct the successor agency to transfer ownership of those assets
that were constructed and used for a governmental purpose, such as roads,
school buildings, parks, and fire stations, to the appropriate public
jurisdiction pursuant to any existing agreements relating to the construction
or use of such an asset. Any compensation to be provided to the successor
agency for the transfer of the asset shall be governed by the agreements
relating to the construction or use of that asset. Disposal shall be done
expeditiously and in a manner aimed at maximizing value.
(b) Cease performance in connection with and terminate all existing
agreements that do not qualify as enforceable obligations.
(c) Transfer housing responsibilities and all rights, powers, duties, and
obligations along with any amounts on deposit in the Low and Moderate
Income Housing Fund to the appropriate entity pursuant to Section 34176.
(d) Terminate any agreement, between the dissolved redevelopment
agency and any public entity located in the same county, obligating the
redevelopment agency to provide funding for any debt service obligations
of the public entity or for the construction, or operation of facilities owned
or operated by such public entity, in any instance where the oversight board
has found that early termination would be in the best interests of the taxing
entities.
(e) Determine whether any contracts, agreements, or other arrangements
between the dissolved redevelopment agency and any private parties should
be terminated or renegotiated to reduce liabilities and increase net revenues
to the taxing entities, and present proposed termination or amendment
agreements to the oversight board for its approval. The board may approve
any amendments to or early termination of such agreements where it finds
that amendments or early termination would be in the best interests of the
taxing entities.
AGENDA CATEGORY:
OVERSIGHT BOARD MEETING DATE: March 7, 2012 BUSINESS SESSION:
ITEM TITLE: Overview of the Former La Quinta
CONSENT CALENDAR:
Redevelopment Agency
STUDY SESSION:
PUBLIC HEARING:
INFORMATIONAL: _2
BACKGROUND AND OVERVIEW:
In the early 1980's, La Quinta was a new city, considered by some to be just an
outpost of the eastern Coachella Valley. Back then, the City was prone to severe
flooding, lacked infrastructure, had very little revenue -generating development and,
being a post Proposition 13 city, only received 7 cents of every property tax dollar
generated. In order to address infrastructure and public facility deficiencies;
promote economic development; assemble properties that were subdivided into
small, irregular parcels; and increase the community's supply of affordable housing,
the La Quinta Redevelopment Agency was established on July 5, 1983. This
provided a mechanism to address conditions of physical and economic blight.
Project Area No. 1 was established in November 1983 to redevelop and expand
deficient public infrastructure and facilities, facilitate economic development, to
assemble small parcels, expand recreation opportunities, and revitalize the La
Quinta Village. Project No. 1 is bounded by Avenue 50 to the north, Jefferson and
Madison Streets to the east, and the La Quinta City boundary on the west.
Project Area No. 2 was established in May 1989 to remove impediments to
commercial and residential development, address public infrastructure and facility
deficiencies, and to increase and improve the community's supply of affordable
housing. It is bounded by Avenue 50 to the south, Fred Waring Drive to the north,
Washington Street to the west, and Jefferson Street to the east. In total, 88% of
the City was in redevelopment project areas (see map, Attachment 1).
The La Quinta Redevelopment Agency ("LQRDA") accomplished much in its 27
years. An extensive list of accomplishments is included as Attachment 2.
Notably, redevelopment provided the means to continually improve the city,
enhance property tax values, encourage investment, construct infrastructure and
public facilities such as parks, the library, fire stations, and museum. In addition,
the LQRDA provided over 1,050 high -quality affordable housing units to nearly
2,600 residents, as evidenced by projects such as Vista Dunes Courtyard Homes
and Wolff Waters Place.
La Quinta has invested tax increment dollars carefully to provide the greatest
benefit to the community. The graphic included as Attachment 3 presents the
sources and uses of the tax increment revenue the LQRDA received. Of the
$746.0 million of tax increment revenue the Agency received from 1984 through
June of 2011, the LQRDA paid 50% of these funds or $372 million to the taxing
agencies that received property tax revenue from the Project Areas, including local
school districts, the county, the county fire and library districts, the water/sewer
district and other public agencies; invested $142 million in affordable housing, $73
million in infrastructure, $11 million in parks, $5 million in public facilities; and
invested $93 million in economic development projects and programs which in turn,
generated significant sales and hotel tax revenues to support public safety and
resident services. Attachment 4 shows the dramatic increase in property valuation
and increase in sales tax generation; and Attachment 5 illustrates the large amount
of sales tax received by the State of California from La Quinta retail
establishments. To summarize, redevelopment was largely responsible for La
Quinta's success.
At the time that AB 26 was upheld by the California Supreme Court, several
projects were already underway. Most are affordable housing projects, and one is
an economic development project. The following projects are subject to future
review by the Oversight Board:
Coral Mountain — located east of the intersection of Dune Palms Road/Highway
111, near the Desert Sands Unified District Office and Costco. The LQRDA
entered into a Disposition and Development Agreement with Coral Mountain
Partners, LP, in January 2011. The agreement provides for a loan of up to $29
million to develop a 176-unit multi -family rental housing complex, affordable to
very -low, low and moderate income residents. The project will also fund
improvements to the Desert Sands Unified School Districts' bus access road, a new
traffic signal at the new "A Street" intersection, and on -site drainage
improvements. The entitlement and environmental review processes are complete,
and the developer is in the final stages of securing 4% Tax Credits and mortgage
revenue bond financing. Construction will commence in July 2012.
2
Washington Street Apartments - In 2006 the LQRDA purchased a dilapidated
apartment complex that is home to 72 extremely low income disabled and senior
adult households. Located on Washington Street at Hidden River Road (in north La
Quinta), the City first needed to annex this property into the City of La Quinta, and
then annex this property into the LQRDA Project Area No. 2 (after facilitating the
detachment of this property from a Riverside County Redevelopment Project Area).
The LQRDA subsequently prepared plans to substantially rehabilitate the 72 units
and to construct 24 new units on this site. Entitlements have been secured and
the project was moving into final construction plan preparation when
redevelopment activities were suspended. Title to this asset was transferred to the
La Quinta Housing Authority (per the AB 26 dissolution procedures) and its fate is
awaiting the final resolution of the disposition of housing bond proceeds and
housing fund balances.
Foreclosed Homes - Since Project Area No.1 was established in 1983, the LQRDA
has focused on addressing blighting conditions that impact the La Quinta Cove
community. Initially, the blighting conditions included rampant flooding, the
absence of sewer and water infrastructure, and dilapidated housing. The LQRDA
has invested in infrastructure improvements, has facilitated the development of
new single family dwellings that provided affordable home ownership opportunities
to very low, low and moderate income households, and substantially rehabilitated
dilapidated homes that were subsequently sold to low and moderate income
households. In response to the foreclosure crisis that started in 2008, the LQRDA
has negotiated foreclosed home purchases with lenders and then substantially
rehabilitated 12 homes, of which 8 have been sold and one has been rented. This
program was initiating new foreclosed home purchases when redevelopment was
suspended. The fate of this initiative is awaiting the final resolution of the
disposition of housing bond proceeds and housing fund balances.
Torre Nissan - The LQRDA concluded an Owner Participation Agreement with
Torre Nissan to upgrade and expand an aging auto dealership facility. Pushed by
Nissan Motors to relocate to a new facility (that incorporated their corporate design
motif), Torre Nissan was contemplating relocation from La Quinta to an auto mall
location. The LQRDA entered into negotiations that provided up to $1.5 million of
redevelopment investment that will remodel the facility to Nissan Motors' corporate
standards,. and expand the facility to accommodate the Nissan Leaf electric
automobile and Nissan Motors' new line of commercial vehicles.
CVWD Canal Realignment - The LQRDA was in negotiations with the Coachella
Valley Water District ("CVWD") to fund a portion of replacing the All American
Canal that traverses SilverRock Resort. The Canal has subsided throughout the
Coachella Valley, except through a majority of the SilverRock alignment, which
reduces flows to Lake Cahuilla and the CVWD ground water recharge facilities.
This facility would replace the existing canal. Tax exempt bond proceeds have
KI
been reserved for this investment; the fate of this initiative is awaiting the final
resolution of the disposition of bond proceeds.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss, Interim Executive Director of
the Successor Agency to La Quinta
Redevelopment Agency
Attachments: 1. Project Areas 1 & 2 Site Map
2. List of LQDRA Accomplishments
3. Tax Increment Revenue Sources and Uses
4. Increase in Property Valuation and Increase in Sales Tax
Generation
5. Sales Tax Received by State
0
LA QUINTA REDEVELOPMENT PROJECT AREAS NOS.1 & 2 ATTACHMENT 1
! x ® � 1 0 0.3 0.6 1.2 1.6 ,2R
IE RSG; Miles
ATTACHMENT
LA QUINTA REDEVELOPMENT AGENCY TIMELINE
1983 - Redevelopment Agency formed and Project Area No. 1 established to
address blighting conditions and affordable housing needs involving properties
located south of Avenue 50. Project Area No. 1 expires November 2024.
1989 - Project Area No. 2 was established to address blighting conditions and
housing needs north of Avenue 50. Project Area No. 2 expires May 2030.
In total, these two Project Areas encompass 14,316 acres or approximately 80%
of the total area of the City.
La Quinta secures quality housing/affordable for its families, workforce and seniors.
Project Name
Target
Group
Income Level
WL, L, M)
Number
of Units
Construction
Completed
Coral Mountain Apartments
Families
VL, L, M
176
2014
Habitat for Humanity SFD
Families
VL
2
2011
Wolff Waters Place (Apartments)
Families
VL
218
2010
Vista Dunes Courtyard Homes
Families
VL
80
2008
Aventine Apartments
Families
M
9
2001
Mt. View Apartments
Families
M
14
2001
Agency Acquired SFD
Families
VL, L, M
50
Rentals
Building Horizons SFD
Families
VI, L, M
23
Sold
Foreclosed Single Family Houses
Families
VL, L, M
6
Rehabilitated
Washington Street Apartments
Seniors
VL
72
2008
Hadley Villas
Seniors
L (+62)
81
2005
Seniors at Miraflores
Seniors
L, M
118
2003
Watercolors
Seniors
M
149
2000
Seasons at La Quinta
Seniors
VL
91
1996
Second Trust Deed Program
Varies
VL, L, M
149
Varies
Infrastructure work is a key investment in a community — improving property
values, creating quality neighborhoods, and commercial areas that are safe and
clean (infrastructure work, enhancements to Cove and Village & Highway 111
areas).
- Phase I of Cove Improvements begins flood control improvements including
curbs, gutters, streets (1988)
- Phase II Cove Improvements begin (1988)
- Sewer Subsidy Program began (1989)
- Subsidy Program expanded to include hook-up fees and assessment payment
Pass Through Agreement for Project Area No. 2 (1989)
- Phase III Cove Improvements began (1989)
- Phase IV Cove Improvements begins (1990)
Approval of Owner Participation Agreement with Washington/Adams LP for
infrastructure improvements (1991)
Phase V Cove Improvements (1991)
Phase VI Cove improvements (2000)
Undergrounding of utilities in Village (2000)
Washington Street utilities undergrounded (2001)
Light standards and pavers for Village (2001)
Refurbishing of Village parking lot (2003)
Finance Agreement with City for parking lot and lighting (2005)
Keeping streets well -maintained and safe as well as traffic flowing smoothly; safety
of pedestrians is a top priority.
- Calle Ultimo and Calle Rondo street improvement (1990)
- La Fonda median landscaping (1992)
- Calle Tampico construction (1992)
- Washington Street Bridge widening (1993)
- Phase I Washington street widening from Channel to Simon Drive (1994)
- Adams Street Improvements (1995)
- Washington/Miles public improvements (1996)
- Funding of sidewalk improvements for La Fonda and Washington (2001)
- Jefferson Street Improvements Phase 1 (2002)
- Washington/Eisenhower street rehabilitation (2002)
- Eisenhower/Avenue 50 parkway landscaping (2002)
- La Fonda street improvements (2003)
- Miscellaneous street improvements (2003)
- Westward Ho and Dune Palms sidewalk improvements (2006)
- Eisenhower bridge and drainage improvements (2006)
- Park Avenue landscaping improvements (2007)
- Eisenhower pavement rehabilitation (2007)
- Avenue 52 median landscaping (2007)
- City-wide traffic safety improvements (2007)
- Miscellaneous street improvements (2008)
- Tampico and Washington Street median improvements (2009)
- Village Area sidewalk infill and pedestrian improvements (2010)
- Traffic signal synchronization on Eisenhower and Adams Streets (2010)
- Golf Cart/Electric Car routes in the Village (2010)
- Highway 111 Utility undergrounding (2010)
- Drainage improvements on Washinton Street (2010)
- Jefferson Street landscaping improvements (2010)
Public safety is the City of La Quinta's number one priority; a safe community is a
successful community (fire stations, police stations, traffic safety projects, storm
water projects).
z
North La Quinta Fire Station (2003)
CVWD begins East La Quinta Stormwater project and Heritage Club
(currently Traditions) Stormwater project (1987)
Phase II of the Stormwater Project 0 990)
La Fonda Storm Channel (change order) (1992)
Avenue 52 storm drain improvements (2006)
Cove Area Fire Station (2010)
Supporting tourism and hospitality to strengthen La Quinta's economic base and
support for local businesses while assisting major commercial development to
support and build La Quinta's financial backbone.
- Centre at La Quinta - infrastructure improvements to facilitate development
- Sam's Club - sale of RDA -owned land
- Embassy Suites - 146 room hotel (2003) - sale of RDA -owned land
- Option Agreement with Wal-Mart to ensure use of old building - Kohls
Department Store (2002)
- Owner Participation Agreement with Harris for development of a Bed and
Breakfast Inn (1996)
- Commercial Property Improvement Program for the Village (2000)
- Disposition and Development Agreement with Centre Pointe for medical
office building, hotel, and affordable housing (2003), including Homewood
Suites at Centre Pointe - 129 room hotel
- Assignment and Assumption Agreement with Desert Cities Development for
property to build affordable housing and commercial site (2007)
- Exclusive Negotiating Agreement with VIP Motors (2007)
- Assignment and Assumption Agreement with Hibachi (2008)
- Owner Participation Agreement with Garff Motors (Chevrolet and Cadillac
Dealerships (2010)
- Village Wayfinding Signs to guide drivers to the Village commercial district
(2010)
- Centre at La Quinta (Auto Dealers) Parkway Design (201 1)
Active in development of trails, bike paths, parks, and recreation for enjoyment of
community and visitors.
- Approve Agreement for funding of Sports Complex with DSUSD (1988)
- Construction of the Bear Creek Bike Path (1990)
- Bike and walking path installed along the Stormwater Channel►11996)
- Bike path on Tampico, Park and Avenue 50 (2001)
- Civic Center park improvements - Agency loan to City (2002)
- La Quinta Community Park improvements (2002)
- Fred Wolff Bear Creek Nature Preserve (2006)
- Pioneer Park (2007)
- La Quinta Sports Complex Rehabilitation (2010)
3
La Quints has a strong commitment to arts & culture and is proud of its history.
- Museum expansion (2000 and 2008)
- Library expansion (2006 and 2008)
Supporting education as La Quinta has some of the best schools in the Valley
- Approval of Agreement with CVUSD (Pass Through) for reconstruction of CV
High School, construction of a junior high, land for elementary school, and
buses 0 991)
- Sale of ten acres to DSUSD for school on Season Way (1994)
- 25 acres sold to DSUSD for District Offices 0 995)
The planning of a community for today and tomorrow; strategic and long-term
planning.
- Urban Strategies hired for Economic Development Plan for Village and
Highway 11.1 (1990)
- Miles/Washington Specific Plan (2001) j
La Quinta active in land acquisition for redevelopment projects and land sales for
redevelopment purposes (affordable housing, commercial, parks, recreation, etc.).
- Purchased 7 lots in Village (1990)
- Purchased 18 acres at NEC Adams and Westward Ho Drive for North La
Quints Park (1990)
- Purchased lot at 51-319 Washington 0 990)
- Purchased Lots 67 and 78 — Library parking lot (1990)
Eminent domain purchase of Fritz Burns Park expansion for Avenue 52
widening (1991)
- Purchase of property for Avenue 52 realignment (1991)
- Property acquisition for Washington Street widening (1991)
- Purchase of 23 lots for CVHC for construction of single family homes (1992)
- Property acquisition by eminent domain for Calle Tampico widening (1992)
- Purchase and Sale Contract with Landmark Land for 36 acres (future
Williams Development site) (1993)
- Purchase and Sale Agreement with Stamko for acquisition of
Miles/Washington property (1995)
- Purchase and Sale Agreement with Stamko for acquisition of Avenue
48/Adams Street 0 995)
- Acquisition of property at 48' and Jefferson Street (1995)
- Purchase and Sale Agreement for Museum (2000)
- Acquisition .by eminent domain of S/E corner of Highway 1 1 1 and
Washington for right turn lane (2000)
4
Option Agreement with KSL for purchase of SRR land (2002)
Purchase of SRR land (2002)
Purchase and Sale Agreement with Santa Rosa Plaza for affordable housing
(2003)
Purchase and Sale Agreement with Kunkle/Murphy for Montezuma property
(2003)
Purchase and Sale with Sheila Weldon for affordable housing (2003)
Purchase and Sale for Hammer property for affordable housing and
commercial development (2004)
- Purchase and Sale Agreement with Sams Club (2005)
Purchase and Sale Agreement with Stamko for Dune Palms and Highway
111 for commercial development(2005)
Purchase and Sale Agreement with Testa for senior affordable housing
(2006)
Purchase and Sale Agreement with Goodman for senior affordable housing
(2006)
Ostrowski land purchase - Lots 5-12 for Village Live -Works Housing project
(2007)
Slater Purchase and Sale Agreement (well site for SRR) (2003)
Hartnett land purchase - Dune Palms for future affordable housing project
(2006)
Pereyra land purchase - Dune Palms for future affordable housing project
(2006)
Fountain land purchase - Dune Palms for future affordable housing project
(2006)
Ramirez land purchase - Dune Palms for future affordable housing project
(2007)
Slater land purchase - Dune Palms for future affordable housing project
(2009)
Simo land purchase - Westward Ho/Dune Palms for future affordable
housing project (2010)
Urban Housing land purchase - Street "A" (entrance to affordable housing
project (2008)
Finances, bonds, payments
- Issued $16,000,000 in Bonds for the Cove Flood Control Project 0 984)
- Received first Tax Increment payment from County for Fiscal Year 1984185
for $248,500 (1985)
- Passed Resolution approving issuance of $20,000,000 in bonds for the Flood
Control Project - Series 0 985)
- Passed Resolution Amendment to allow Debt Service (1985)
- Approval of Series 1998 Bonds (1988)
5
Resolution passed for Issuance of Tax Allocation Refunding Bonds -
$30,000,000 to refund $20,000,000 Series 1985 and to fund Cove
Improvements Series 1989 (1988)
Resolution passed approving Issuance of Bonds for $8,000,000 to finance
Cove Improvements Series 1989 (1988)
Resolution approving issuance of Tax Allocation Refunding Bonds for
$20,000,000 ($19,695,000) to refund certain obligations of Agency and
approving escrow Agreement (1990)
Resolution approving Issuance of Tax Allocation Bonds for $8.7 million for
Stormwater Improvements - Series 1991 (1991)
Resolution approving Draft Indenture of Trust for $6,000,000 for PA 2 -
1992 Series(1992)
Approval of Issuance of 1994 Series Bonds for $26,665,000 0994)
- Resolution authorizing substitution of Reserve Fund securing La Quinta
Redevelopment (1994)
Project Tax Allocation Bond Series 1991 $735,000 (1994)
Exclusive Underwriting Agreement for 1995 Bonds - $35,000,000 (1995)
1995 Bonds $22,000,000 for affordable housing projects (1996)
Issuing Tax Allocation Parity Refunding Bonds - $16,000,000 to finance
Project Area No. 1 0 998)
- Resolution authorizing issuance of Tax Allocation Refunding Bonds -
$8,000,000 for Project Area No. 2 (1998)
Issuance of Tax Allocation Bonds for $48,000,000 - Series 2001 (2001)
Continuing disclosure for 1995, 1998, and 2001 Tax Allocation Bonds for
FY June 30, 2001 (2001)
Authorizing issuance of additional bond sale for purchase of SRR land (2002)
Issuance of Tax Allocation Bonds Series 2003 - $30,000,000 (2003)
Increased Project Area 2 Tax Increment level from $400,000,000 to
$1,500,000,000 (2004)
Approval of tax increment revenue from Project Area No. 1 for Library
construction (2004)
Finance Authority sells approximately $90,000,000 of tax exempt revenue
bonds to refund 1995 housing bonds ($20,695,409) (2004)
Miscellaneous
- Approval of DDA with Wes Development for affordable single family houses
(1992)
- State Education Revenue Augmentation Shifts - Since the inception of the
La Quinta Redevelopment Agency, the State of California has taken $36.2
million in redevelopment funds that could have been used to further improve
La Quinta's two project areas.
N
M
ATTACHMENT3
• 9
0
0
^l
t,
TAX INCREMENT RECEIVED,
1984-85 THROUGH 2009-10, $746 MILLION
Other
Expenditures
$47 Million
6%
Housing
$145 Million
20%
TAXING AGENCIES
Taxing $ 372 MILLION
Agencies
$372 Million
50%
Projects
$182 MillionL$1820MILLION
24%
$145 MILLION INVESTED in affordable housing
1,052 AFFORDABLE HOUSING UNITS CONSTRUCTED
2,587 RESIDENTS in Agency -sponsored housing
1,533 additional units required by the State
Taxing
Agencies
$35Million
ERAF
9�0
$36 Million
10
CoGF, F
Mrary
$225M Won
60%
Public Facilities
\ $5 Million
l\ 3%
Economic \
Development
$93 Million
51%
Irt{t9etrVCtG4'B
40%
l /
i
P
Parks
$11 Million
6%
$93 MILLION INVESTED in economic development
8,306 JOBS CREATED including 5,824 temporary jobs and 2,482 permanent jobs
ATTRACTED Costco, Kohls, Home Depot, Wal Mart, Lowes, and Hilton to the City
CONSTRUCTED a museum, library and two fire stations
OPENED THE CITY to development through infrastructure investments
$372 MILLION PAID to County, Fire, Libraries, Schools and ERAF
Agency does not have Eminent Domain Authority.
NEW JOBS BY DEVELOPMENT TYPE
Housing
Development
Economic
Development
Infrastructure
Permanent jobs
2,371
2,418
Temporary jobs
RESIDENT PROFILE
c Family population
o Senior population
1,089
264
332 1175 1 238
Very Low Low Mod
Income Income Income
Total
Total Tax Increment
$ 745,587,951
Redevelopment Funds (Non -Housing)
Redevelopment Tax Increment
598,953,858
Payments to Schools
(76,114,161)
Payments to County GF, Fire, & Library
(224,778,304)
Other Taxing Agency Payments
(34,977,284)
ERAF Payments
(36,200,000)
Net Redevelopment Tax Increment
$ 226,884,109
Redevelopment Projects
Infrastructure 72,673,174
Economic Development 93,124,771
Parks 10,739,776
Public Facilities 5,146,771
Total $ 181,684,492
Redevelopment Tax IncrementNet of Projects and Pass Throughs $ 45,199,617
Housing
20% Housing Set Aside
Housing Projects
146,634,093
145,207,828
Housinq Set Aside Net of Projects $ 1,426,265
Sources:
Minnesota IMPLAN Group IMPLAN Model V3 with Riverside County Plus 2009 Economic Data
Bureau of Labor Statistics Occupational Employment Statistics Survey, 2009
Southern California Association of Governments Employment Density Study Summary Report prepared
by The Natelson Company in 2001
Riverside County Assessor
Marshall & Swift Building Cost Estimations
City of La Quinta Development Impact Fees and Development Permit Fee Schedules
State of California State Controllers Reports (1990-91 to 2009-10)
City of La Quinta
U.S. Census
ATTACHMENT
O
O
o
0
a
S
0o
c
0
o
0
0
0
$
0
o
O
o
y
o
0
0
0
0
0
0
0
0
0
0
0
0
0
O
o
VII
N
O
O
H
Q
D
i
cD
s,
°°
j
_
Fa4
W
U)
W
U)
Q
a
W
J
Q
'
Z
W
CD
Z
=
0
2
m
o
0
o
O
O
O
o
O
o
0
0
0
0
0
y
O
O
O
O
O
O
0
O
0
O
0
O
0
O
O
O
O
O
O
O
O
m
O
O
O
O
O
O
O
y
Q
O
O
O
N
O
O
O
(D
O
O
O
O
O
O
0
N
f9
e9
WM
ON
M
�
M
0
0
N
N
0)
0)
LA QUINTA REDEVELOPMENT AGENCY
SALES TAX GENERATED AS A RESULT OF ECO11,w1NOMIC DI
SALES TAX REVENUES
$70,WOp00
560,000,000
Sso,000,000
54000,000
530 WOADD
SiD,0oM,M
Sio,000,m
$D
REDEVELOPMENT OPENED THE
CITY for development through infrastructure
investments
REDEVELOPMENT FUNDS WERE
LEVERAGED to attract many of the largest
retailers including Costco, Wal-Mart, Lowes,
and Kohl's
SALES TAX REVENUES fund our Police
Department, Parks, and other services
STATE GENERAL FUND BENEFITS
from all sales in La Quinta, receiving $6 for
every $1 the City gets
SALES TAX REVENUES
1992 THROUGH 2O10
ATTACHMENT
Ion tNITyr
`� &r
Transportation Measure
$38.9 Million, 6%
SALES TAX REVENUE GROWTH, 1992 THROUGH 2O10
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010