2012 03 07 OB MinutesOVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
MARCH 7, 2012
A special meeting of the Oversight Board of Successor Agency to La Quinte
Redevelopment Agency was called to order at 4:00 p.m. by Interim City Manager,
Mark Weiss.
PRESENT: Board Members Ellis, Marshall, Maysels, McDaniel, Nelson, Osborne,
Chairperson Pena
ABSENT: None
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
PRESENTATIONS
Introduction of Board Members:
Wade Ellis, Director of Fiscal Services, Desert Community College District;
Appointed by Chancellor of California Community College
Heidi Marshall, Asst. Director, Economic Development Agency for County of
Riverside; Appointed by Supervisor John Benoit
Susan Maysels, City of La Quinta Employee; Appointed by Mayor of La
Quinta
Cindy McDaniel, Asst. Superintendent, Business Services, Desert Sands
Unified School District; Appointed by Riverside County Office of Education
Peter Nelson, President of Coachella Valley Water District Board of Directors;
Appointed by Coachella Valley Water District Board of Directors
Lee Osborne, City of La Quinta Council Member; Appointed by Mayor of La
Quinta
John Pena, Resident of City of La Quinta, Appointed by Supervisor John
Benoit
2. Swearing in of Board Members
Board Members were sworn in by the City of La Quinta Interim City Clerk.
BUSINESS ITEMS
1. Election of Chair and Vice -Chair
The vote was done by ballot.
Chairperson: Board Member Pena - 5. votes; Board Member Ellis - 1 vote;
Board Member Marshall - 1 vote.
MOTION: A motion was made by Board Members Osborne /Maysels to
elect John Pena as Chairperson of the Oversight Board. Motion carried by a
vote of 7 ayes, 0 nays.
Vice Chairperson: Board Member Osborne 6 votes; Board Member
Maysels - 1 vote
MOTION: A motion was made by Board Members Nelson /Ellis to elect
Board Member Osborne as Vice Chairperson of the Oversight Board. Motion
carried by a vote of 7 ayes, 0 nays
2. Designation of Contact Person for Department of Finance Inquiries Motion to
appoint Interim Executive Director as Contact Person
Pursuant to the Health & Safety Code, the Board must designate a person
for the Department of Finance for any inquiries regarding actions taken by
the Board. Staff recommended the Interim Executive Director as contact
person.
MOTION: A motion was made by Board Members Maysels /McDaniel to
appoint the Interim Executive Director as contact person for Department of
Finance inquiries. Motion carried unanimously.
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
The Board adopted a resolution to meet on the Wednesday after the first and
third Tuesday of the month at 2:00 p.m. beginning Wednesday, March 21„
2012. However, staff recommended canceling the March 21, 2012
meeting due to complex issues on the next agenda. Therefore, the next
OVERSIGHT BOARD MINUTES 2 MARCH 7, 2012
Board meeting will be Wednesday, April 4 2012.
MOTION: A motion was made by Board Members Nelson /Osborne to
adopt Resolution No. OB 2012 -001 establishing the date, time and location
of Oversight Board meetings as the Wednesday after the first and third
Tuesday of the month at 2:00 p.m. at La Quinta City Hall, 78495 Calle
Tampico, La Quinta, California. Motion carried by vote of 7 ayes, 0 nays.
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
Board Member Maysels commented that the local practice of numbering
minute actions is obsolete and of no use to the Board minutes. Maysels
recommended that the reference to minute actions in Section 9 be deleted
from the Rules of Procedures and as well as the word "Minute Order" on the
first line of Section 91a►.
MOTION: A motion was made by Chairperson Pena /Vice Chair Osborne to
adopt Resolution No. 2012 -002 Bylaws and Resolution No. 2012 -003 Rules
of Procedure as amended. Motion carried by vote 7 ayes, 0 nays.
Public comment:
Kay Wolff, 77 -927 Calle Ensenada, La Quinta
Ms. Wolff had questions regarding understanding the Oversight Board:
1. How is the public to be educated on the responsibilities of the Board,
the disposition of money and property that were under the
Redevelopment Agency?
2. When will Conflict of Interest Statements be filed and available to the
public?
3. How can a member of the Successor Agency oversee himself on this
Board?
4. How can former council members now oversee actions relating to his
or her prior RDA decisions?
Interim Executive Director Weiss indicated that the Board can add these items to
the next agenda packet to address these questions.
OVERSIGHT BOARD MINUTES 3 MARCH 7, 2012
Chairperson Pena stated that meetings are open to the public and will be
advertised. He indicated that Conflict of Interest Form 700 will be completed by all
Board members and must be filed by April 2, 2012.
Vice Chairperson Osborne added that the State Legislature dictates the composition
of the Board.
INFORMATIONAL ITEMS
1. Purpose of Oversight Board
Staff presented staff report.
Board Member Nelson asked if the attachments to the staff report were the
actual law and if it was a complete summary of Oversight Board
responsibilities. Staff indicated that it is complete.
Board Member Nelson asked if the total amount of indebtedness of the
Successor Agency will be presented to the Board. Staff stated that it will be
presented in the annual budget and a summary report would be prepared for
the Board at the next meeting.
Vice Chairperson Osborne noted that there may be differences in
interpretation of the law between the City and County with regard to
sending property tax funds to the city for debt service on bonds. He asked if
the resolution to those issues would come before the Oversight Board.
Kathy Jenson explained how the bond payments are made. The bond
payments are listed on the Recognized Obligation Payment Schedule. The
payment schedule will come before the Board for approval.
2. Overview of Former La Quinta Redevelopment Agency
Frank Spevacek, Principal, RSG, Inc., presented report.
Vice Chairperson Osborne asked about the changing laws in Sacramento and
was concerned that the Board Members would be in a position of making a
decision and the laws could change and could possibly negate what the
Board has done.
Mr. Spevacek explained that one of the duties of the Oversight Board is to
look at existing bond issues and determine if it makes economic sense to
either pay off those bond issues or restructure them to lower the amount of
property tax revenue needed to retire that debt. There are currently
OVERSIGHT BOARD MINUTES 4 MARCH 7, 2012
legislative proposals in Sacramento to allow the Successor Agency to keep
non - housing bond proceeds as well as potentially housing bond proceeds.
At this time, this Agency has approximately $12 million /$13 million of non -
housing bond proceeds available and approximately $28 million of housing
bond proceeds available. If these legislative proposals are successful and the
Successor Agency and the La Quinta Housing Authority can keep those
funds, than decisions regarding those bonds would not be part of the
Board's oversight.
Mr. Spevacek mentioned the Recognized Obligation Payment Schedule
( "ROPS "), needs to move forward. A project known as the Coral Mountain
development proposal must also be addressed shortly. The Developer is
going to be applying for tax credits on March 16, 2012. They will not get
the award of tax credits until May 2012. The former Redevelopment
Agency, when it was in existence, was looking to fund a $29 million
commitment to facilitate that development through housing fund cash that
the Agency was accruing over about the last three years. So that proposal
will be brought forward by staff to see if 1) it meets with the Board's
approval and 2) if it does and because it is on the BOPS, it would then be
sent up to the State for their blessing or contention. If the legislation
passes, then it will be a non - issue; if it doesn't pass and the Board looked
favorably on it and the State didn't, than we get into a gray area, which is
one of the facets of ABx 1 26 (the legislation the Board is operating under).
The second project is the Torre Nissan remodel. Currently, that facility has
been demolished. The showroom is a series of tents and temporary
structures and inventory is now displayed throughout their blacktop facility.
The Agency committed through an owner participation agreement to provide
$1.5 million to facilitate the remodel. The fund designated for that are
taxable Project Area No. 2 bonds, of which out of the $3.9 million proceeds
amount, $1.5 million is designated for the Torre Nissan remodel. This issue
will be brought forward in April to seek Board approval. If the Board agrees
with that proposal and it is approved, then those funds would be designated
for Torre Nissan, sent up to the State Department of Finance for review. If
they do not give it their blessing, then we fall into the gray area again. At
this point, staff is trying to balance moving some proposal forward for Board
consideration because third parties that are under contract, are on a set time
frame to move forward. The Board needs to facilitate their time frames and
their funding needs and at the same time, there are no absolute guarantees
in terms of what the State's position will be or what the Board's collective
position will be on blessing or not blessing pending projects.
OVERSIGHT BOARD MINUTES 5 MARCH 7, 2012
Vice Chairperson Osborne asked for clarification on the State's review of all
Board decisions. The State has three days after each Board meeting to
question any decision and ten days to approve the action or return it to the
Board for reconsideration. If the Board does not hear anything from the
State, it is assumed that they have agreed or allowed the Board to move
forward with what they decided.
CHAIR AND BOARD MEMBERS' ITEMS — None
ADJOURNMENT
There being no further business, it was moved by Board Members Nelson /McDaniel
to adjourn. Motion carried unanimously.
Respectfully
LORI LAFOND
Oversight Board
OVERSIGHT BOARD MINUTES 6 MARCH 7, 2012