2012 04 03 SA MinutesCITY AS SUCCESSOR AGENCY
TO THE LAQUINTA REDEVELOPMENT AGENCY
MINUTES
APRIL 3, 2012
A regular meeting of the La Quinta City Council in its capacity -as Successor
Agency to the Dissolved La Quinta Redevelopment Agency ( "SA ") was called to
order at the hour of 5:55 p.m. by Chairperson Adolph.
PRESENT: Members Evans, Franklin, Henderson, Osborne, Chairperson Adolph
ABSENT: None
CLOSED SESSION - NONE
PUBLIC COMMENT - NONE
CONFIRMATION OF AGENDA
City Attorney Jenson requested that Successor Agency Members make the
necessary findings to add to the agenda as Item No. 5 on the Consent Calendar, a
resolution approving an amended Recognized Obligation Payment Schedule (BOPS)
for January 2012 through June 2012.
MOTION - A motion was made by Successor Agency Members
Henderson /Osborne to add Item No. 5 to the Consent Calendar because the
Successor Agency Members have determined that there is a need for immediate
action which cannot reasonably wait for the next regularly scheduled meeting, and
the need for immediate action came to the attention of the Successor Agency after
the agenda had already been posted. This determination, that there is a need for
immediate action, is made by at least two- thirds of the total membership of the
Successor Agency as follows:
AYES: SA Members Evans, Franklin, Henderson, Osborne, Chair Adolph
NOES: None
ABSTAIN: None
ABSENT: None
City Attorney Jenson informed the SA that a replacement attachment to Consent
Calendar Item No. 2 was distributed at the start of the meeting.
APPROVAL OF MINUTES
MOTION - A motion was made by SA Members Evans /Franklin to approve the
minutes of March 20, 2012 as submitted. Motion passed unanimously.
CITY AS SUCCESSOR AGENCY TO RDA 1 MINUTES OF APRIL 3, 2012
CONSENT CALENDAR
1. APPROVAL OF DEMAND REGISTER DATED APRIL 3, 2012
2. ADOPTION OF A RESOLUTION APPROVING AN AMENDED RECOGNIZED
OBLIGATION PAYMENT SCHEDULE OF THE FORMER LA QUINTA
REDEVELOPMENT AGENCY FOR THE PERIOD OF JULY 2012 THROUGH
DECEMBER 2012
3. APPROVAL OF AN AMENDED SCHEDULE OF PERFORMANCE FOR THE
OWNER PARTICIPATION AGREEMENT AMONG THE FORMER LA QUINTA
REDEVELOPMENT AGENCY, MEGA DEALER LLC, AND ROBERT N. LA
TORRE, INC. FOR THE TORRE NISSAN DEALERSHIP LOCATED AT 79 -125
HIGHWAY 111
4. APPROVAL OF A SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR
THE PERIOD OF JULY 2012 THROUGH DECEMBER 2012
5. ADDED ITEM > ADOPTION OF A RESOLUTION APPROVING AN AMENDED
RECOGNIZED OBLIGATION PAYMENT SCHEDULE OF THE FORMER LA
QUINTA REDEVELOPMENT AGENCY FOR THE PERIOD OF JANUARY 2012
THROUGH JUNE 2012
MOTION - A motion was made by SA Members Evans /Franklin to approve the
Consent Calendar with the revised Item No. 2 attachment and the new Item No. 5
as recommended with Item No. 2 and No. 5 being approved as Resolution Nos. SA
2012 -004 and SA 2012 -005 respectively. Motion passed unanimously.
BUSINESS SESSION NONE
STUDY SESSION
1. DISCUSSION OF ITEMS FOR FUTURE OVERSIGHT BOARD CONSIDERATION
RSG Consultant Frank Spevacek presented staff report.
City Attorney Jenson informed Council that one of the consequences of the
uncertainty surrounding former RDA projects is the unwillingness of title companies
to issue title insurance on property for which the Oversight Board and /or State DOF
could instruct the City to dispose of property, or renegotiate or breach the
development contract.
Attorney Jenson noted that staff was responding to requests for information and
documents by the Auditor hired by the County, and by the State Controller's
CITY AS SUCCESSOR AGENCY TO RDA 2 MINUTES OF APRIL 3, 2012
Office. The County is examining all transactions, and the State is looking at
property transfers from the RDA to the City during the "clawback period of
January 2011 to February 2012. She stated that at this point the audits are an
information - gathering effort, no challenges or judgments have been made. She said
the findings of the audit are due to go to the Oversight Board, and perhaps the
conclusion will be a State report that the City, developers and title companies can
rely on to move forward. Attorney Jenson explained that at present, in addition to
the State's three -day review period and ten -day determination period, there is the
13 -month clawback period for transferred assets, and a two -year statute of
limitations for lawsuits - this is of great concern to title companies. She stated that
title companies are requesting affirmative representation from the State DOF
stating that it does not plan to challenge Oversight Board actions.
SA Member Osborne stated that Sacramento has divided and conquered the cities
of the State of California, and left cities with no solid guidelines on how it intends
to proceed. La Quinta and every city in the state is now left open to tremendous
liability if it proceeds with developments based on no challenge from the State after
the three -day and ten -day periods, and down the road in 6, 9, or 12 months the
State or a lawsuit intervenes in the middle of construction or when a payment is
due. Mr. Osborne suggested it may be time to consider hiring a lobbyist to
represent La Quinta in Sacramento.
SA Member Henderson explained the efforts of the League of California Cities in
lobbying the Legislature on every issue, bill and proposal on this matter, and noted
that the League has a PAC to which more elected officials should contribute.
In response to SA Member Franklin, Attorney Jenson stated that the Housing
Authority has clear title and title insurance for the Coral Mountain property, but
title insurance is now being sought for the upcoming transaction to the developer.
Chairperson Adolph asked staff to research the Mayor's ability to appoint alternates
to his two Oversight Board appointees.
ADJOURNMENT
There being no further business, it was moved by SA Members Evans /Franklin to
adjourn at 6:29 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Interim Secretary
Successor Agency to the
Dissolved La Quinta Redevelopment Agency
CITY AS SUCCESSOR AGENCY TO RDA 3 MINUTES OF APRIL 3, 2012