2012 07 03 SACITY AS SUCCESSOR Ad ENCY
TO THE LAQUINTA REPEVELOPMENTACmENCY
Agendas and staff reports are
available on the City's web page:
www.la-quinta.org
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico I La Quinta, California
Regular Meeting
TUESDAY, JULY 3, 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-009
CALL TO ORDER
ROLL CALL
Successor Agency Members:
Evans, Franklin, Henderson, Osborne and Chairperson Adolph
CLOSED SESSION - NONE
PUBLIC COMMENT
At this time members of the public may address the City Council acting as the legislative
body for the City as S uccessor Agency to the La Quinta Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1 . APPROVAL OF MINUTES OF JUNE 19, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 . APPROVAL OF DEMAND REGISTER DATED JULY 3, 2012
CITY AS SUCCESSOR AGENCY TO RDA 1
00.
JULY 3, 2012
2. ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2012/2013
SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY
BUDGET
BUSINESS SESSION - NONE
STUDY SESSION - NONE
DEPARTMENT REPORTS
1 SUMMARY OF REDEVELOPMENT AGENCY DISSOLUTION BUDGET TRAILER
BILL
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on July 17, 2012 commencing with closed session at 3:00 p.m. and
open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta,
CA 92253.
DECLARATION OF POSTING
1, Susan Maysels, Interim City Clerk of the City as Successor Agency to the La Quinta
Redevelopment Agency, do hereby declare that the foregoing agenda was posted on the
outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards
at 51-321 Avenida Bermudas and 78-630 Highway 111, on June 29, 2012.
DATED: June 28, 2012
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SUSAN MAYSELS, Inteqim City Clerk
City of La Quinta, California
CITY AS SUCCESSOR AGENCY TO RDA , 2 JULY 3, 2012s, 30 002
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed
for the hearing impaired, please call the City Clerk's Office at 777-7103, 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 City Council, arrangement
should be made in advance by contacting the City Clerk's Office at 777-7103. A one (1) week
notice is required.
If background material is to be presented to the City Council during a City Council meeting,
please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the
City Clerk 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 City Council regarding any item on this
agenda will be made available for public inspection at the City Clerk counter at City Hall located
at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours.
CITY AS SUCCESSOR AGENCY TO RDA 3
003
JULY 3, 2012
T'af ot 4 as&&
CITYHMEETING DATE: Julv3,2012
ITEM TITLE: Approval of Demand Register Dated
July 3, 2012
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION'
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
July 3, 2012 of which $224,606.03
Represents Successor Agency Expenditures as detailed below:
Vendor:
Account #:
Amount:
Purpose:
Rosenow Spevacek Grp
231-9001-702.32-07
$11,659.92
Housing Compliance
Rosenow Spevacek Grp
232-9002-702.32-07
$5,537.50,
Coral Mountain
Rosenow Spevacek Grp
232-9002-702.32-07
$1,587.50.
Torre Nissan
Rosenow Spevacek Grp
237-9001-702.32-07
$1,549.38
Admin SA1
Rosenow Spevacek Grp
238-9002-702.32-07
$763.12
Admin SA2
Lance Sol[ & Lunghard
237-9001-702.32-13
$3,852.50
RDA Audit
Lance Soll & Lunghard
238-9002-702.32-13
$1,897.50
RDA Audit
Caha, Becky
237-9001-702.32-07
$952.61
LQ Housing Program
Torre Nissan
417-9002-702.80-05
$196,606.OD
Disbursement Req
0 0 4
By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected to be
the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to Health and
Safety Code Section 34177(a), the Successor Agency of the La Quinta Redevelopment
Agency shall continue to make payments required pursuant to an adopted enforceable
obligations payment schedule. The payments above are required pursuant to the
enforceable obligations payments schedule adopted by the La Quinta Redevelopment
Agency on January 17, 2012.
Pursuant to Health and Safety Code Seciton 34173(e), the liability of the SuccessorAgency
of the La Quinta Redevelopment Agency, when acting pursuant to the powers granted under
ABX126, are limited to the extent of the total sum of property tax revenues it receives
pursuant to part 1.85 of ABX126 (e.g., Health and Safety Code Sections 34170 — 374190)
and the value of assets transferred to it as Successor Agency for the dissolved La Quinta
Redevelopment Agency.
Respectfully submitted,
3"
John M. Falconer, Finance Director
..Is .. o05
CITY/&HA/FA MEETING DATE: July 3, 2012 AGENDA CATEGORY:
ITEM TITLE: Adoption of a Resolution Approving the BUSINESS SESSION:
Fiscal Year 2012/2013 Successor Agency to the La CONSENT CALENDAR: -2-
Quinta Redevelopment Agency Budget
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt a Resolution of the Successor Agency to the La Quinta Redevelopment Agency
approving the Fiscal Year 2012/2013 Budget.
FISCAL IMPLICATIONS:
All Fiscal Year 2012/2013 revenues, operational expenses, and debt service payments,
are included in the Proposed Fiscal Year 2012/2013 Budget (see Attachment 1 of City
Council staff report).
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
At the Successor to the La Quinta Redevelopment Agency Meeting of June 5, 2012,
the Agency adopted the Preliminary Budget and provided staff direction regarding the
Final Budget for the 2012/2013 Fiscal Year.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Successor Agency to the La Quinta Redevelopment
Agency include:
1) Adoption of a Resolution of the Successor Agency to the La Quinta
Redevelopment Agency approving the Fiscal Year 2012/2013 Budget; or
006
2) Provide staff with alternative direction.
Respectfully submitted,
Aq �M e- X6��
'-- �John M. �FalcoonerFinanceDirector
Approved for submission by:
J. S5e-Y&PeC, Executive Director
.007
RESOLUTION NO. SA 2012-
A RESOLUTION OF THE SUCCESSOR AGENCY TO
THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING A BUDGET FOR FISCAL YEAR
2012/2013
WHEREAS, each year the Successor Agency to the La Quinta Redevelopment
Agency adopts a Budget for Revenues and Expenditures for the upcoming Fiscal Year;
and
WHEREAS, the Successor Agency to the La Quinta Redevelopment Agency
desires to make provisions for a level of services commensurate with the needs of the
City; and
WHEREAS, the Successor Agency to the La Quinta Redevelopment Agency
has reviewed said budget and has had several public meetings to receive public input;
and
WHEREAS, the Successor Agency to the La Quinta Redevelopment Agency has,
after due deliberation and consideration, made such amendments in the proposed
budget as it considers desirable; and
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the La Quinta
Redevelopment Agency to adopt, as follows:
SECTION 1. The Fiscal Year 2012/2013 Budget which is on file with the
Successor Agency to the La Quinta Redevelopment Agency Secretary is hereby
approved.
SECTION 2. Continuing Appropriations which remain unspent and were
authorized by the Agency in Fiscal Year 2011/2012 are approved in the Fiscal Year
2012/2013 Budget in an amount not to exceed $1,000,702 and encumbrances are
approved in the Fiscal Year 2012/2013 Budget in an amount of $0 (Exhibit A).
SECTION 3. Budget adjustment procedures are approved as follows:
A. Additional appropriations and the transfer of cash or
unappropriated fund balance from one fund to another shall be
made only upon Redevelopment Agency approval.
B. Transfers of budgeted appropriations between divisions or capital
projects shall be made only upon Redevelopment Agency approval.
008
Resolution No. RDA 2012-
Budget Approval FY 201212013
Adopted: July 3, 2012
Page 2
C. Transfers of budgeted appropriations between accounts within a
division or capital project may be made with the approval of the
Executive Director or his designee.
D. Prior year budget continuing Appropriations and Encumbrances for
unexpended capital project appropriations remaining from
uncompleted prior year capital projects shall be made with
Executive Director approval. These carry-over appropriations are
for prior year Redevelopment Agency approved capital projects and
shall not exceed the approved project budget.
SECTION 4. The Executive Director shall render a monthly report to the
Successor Agency to the La Quinta Redevelopment Agency Board on the status of
Agency operations as it relates to the approved budget and any amendments thereto.
PASSED, APPROVED, and ADOPTED at a regular meeting of the Successor Agency to
the La Quinta Redevelopment Agency held on this 3rd day of July, 2012, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DON ADOLPH, Chair
Successor Agency to the La Quinta
Redevelopment Agency
ATTEST:
SUSAN MAYSELS, Interim Agency Secretary
Successor Agency to the La Quinta Redevelopment Agency
(SEAL)
009
Resolution No. RDA 2012-
Budget Approval FY 2012/2013
Adopted: July 3. 2012
Page 3
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
010
EXHIBIT A
Successor Agency to the La Quinta Redevelopment Agency
Fiscal Year 2011/12 Continuing Appropriations/Encumbrances - Note I 21-Jun-12
As Dresenteo in 13 Cl t D ments
_quage_ocu
Co ' uing
Department Account Description Aro- iation I Encl'jmhran�. Total
PA 2 Taxable Bond Fund
417-9002-702.80-05
Torre Nissan Agreement
1,000,702
1,000,702
Total
---
1,000,702
0
1,000,702
,Total Successor Aq
4 nnn n,
A
Note 1 - The appropriations and encumbrances listed will be adjusted to reflect actual expenditures as of June 30, 2012 in Fiscal Year 2011-2012
Oil
SA Department Report: J_
T4191 4 4 Quuro
MEMORANDUM
TO: Chairperson and Members of the Successor Agency
FROM: Debbie Powell, Economic Development/Housing Manager
DATE: July 3, 2012
SUBJECT: Summary of Redevelopment Agency Dissolution Budget Trailer Bill
The California State Assembly and Senate passed Assembly Bill 1484 on June 27,
2012. The Bill has likely been signed by the Governor as of this writing. Listed
below are some of the highlights of AB 1484. A complete copy of the bill is
available in the City Manager's office.
AB 1484 is the 2012/2013 State Budget Trailer Bill that amends certain provisions
of ABx1 26, the Redevelopment Dissolution Law. Key provisions include:
$22,000,000 is allocated to the Department of Finance (DOF) from the State's
General Fund for costs associated with the unwinding of redevelopment.
In regards to housing assets, the bill requires that a listing of housing assets be
submitted to DOF by August 1, 2012. The bill requires that the DOF review and
object to any asset or transfer, with any objections potentially subject to a meet
and confer resolution process, to be defined in the future by the DOF. The bill
allows pre-2011 housing bond proceeds to be retained by the Housing Successor
for affordable housing projects. However, the law is silent on the post-2011
housing bond proceeds — this appears to be subject to further discussion at the
State level.
The bill provides that bond covenants are enforceable obligations, and bond
proceeds must be used in a manner consistent with the bond covenants.
A new "due diligence review" requirement has been added:
1. The City (as successor agency) must retain a licensed accountant
approved by the County Auditor -Controller (County A/C) with experience
and expertise in local government accounting to complete a "due
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1. J_ 012
diligence review to determine the unobligated balances available for
transfer to taxing entities." The City must submit the due diligence
review to the County A/C, the State Controller's Office (SCO), and the
DOF prior to October 1, 2012 (with respect to the former Redevelopment
Agency's (RDA) Low -Mod Housing Fund) and by December 15, 2012 for
all other funds. The Oversight Board (OB) must then review and approve
by October 15, 2012 and January 15, 2013, respectively. DOF then
must review and approve by November 9, 2012 (for the Low/Mod fund)
and by April 1, 2013 (for other assets/funds).
2. Once any disputes are resolved and the due diligence review and the
amount of cash or cash equivalents available for immediate disbursement
to the taxing entities has been determined, the City (as successor agency)
must remit the amount of funds required to the County A/C within five
(5) working days.
3. By December 1, 2012, the County A/C is supposed to provide a report to
DOF confirming whether each successor agency in that county has
remitted the correct sum owing with respect to the former RDA's housing
fund. The County A/C's report as to other funds is due to DOF by April
20, 2013. There are potentially huge penalties, which could include a
reduction in sales tax allocations to the City or a reduction of property tax
allocations.
4. Once the City has made the required payment to the County A/C and the
County A/C confirms with DOF, DOF is supposed to issue, within five (5)
business days a "finding of completion."
Other provisions include:
The bill requires numerous submittals of Recognized Obligation Payment Schedules
to the County A/C, DOF, and SCO. If a ROPS is not filed on time, a fee of
$10,000 per day will be assessed on the City that created the former RDA. The
SCO can also independently question ROPS items.
The DOF can call up OB actions in five (5) days (previously 3) and has forty (40)
days (previously 10) to approve the action or return it to the OB for review.
New long-range, detailed asset management plans (i.e., disposing of assets) must
be created and submitted to the OB and DOF for approval.
Asset transfers and property disposition require a 10-day public notice period
before an OB meeting is convened to consider the transfer/disposition action.
013
Successor Agencies must complete significant reporting activities on all assets and
expenditures, even for those housing assets transferred to a successor housing
entity.
The OB members no longer have personal immunity, and are now protected by the
immunities available to public entities and public employees.
The bill provides unused bond proceeds may be used to buy back the bonds on the
open market to eliminate the obligation. The Successor Agency may also refund
bonds if there is a significant cost savings.
If the Successor Agency receives a "finding of completion" from the DOF (i.e., the
Successor Agency has complied with all provisions of AB 1484), there are
provisions that allow for the repayment of outstanding City/Agency loans if the OB
finds the loan was for legitimate redevelopment purposes. However, the law is
silent on City/Agency loans repaid prior to redevelopment dissolution.
014