2012 05 15 SACITY AS SUCCESSOR ACIENCY
TO THE LAQUINTA REDEVELOPMENT ACIENCY
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. MAY 15. 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-007
CALL TO ORDER
ROLL CALL
Agency Members Evans, Franklin, Henderson, Osborne and Chairperson Adolph
CLOSED SESSION - NONE
PUBLIC COMMENT
At this time members of the public may address the Successor 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 MAY 1, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 . APPROVAL OF DEMAND REGISTER DATED MAY 15, 2012
2. RECEIVE AND FILE TREASURER'S REPORT DATED MARCH 31, 2012
3. RECEIVED AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH
31,2012
CITY AS SUCCESSOR AGENCY TO RDA 1 MAY 15, 2012 001
BUSINESS SESSION - NONE
STUDY SESSION — NONE
REPORTS AND INFORMATION ITEMS
1 . OVERSIGHT BOARD MINUTES OF APRIL 18, 2012
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on June 5, 2012 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 Secretary 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 Calls Tampico and on the bulletin boards
at 51-321 Avenida Bermudas and 78-630 Highway 111, on May 11, 2012.
DATED: May 10, 2012
&4", k114
SUSAN MAYSELS, l2rilm Satretar�y
Successor Agency to the La Quinta Redevelopment Agency
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 Successor Agency,
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 Successor Agency during a 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 Successor Agency Members 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 Calls Tampico, La Quinta, California, 92253, during normal business
hours.
CITY AS SUCCESSOR AGENCY TO RDA 2 MAY 15, 2012 o02
Tdf 444"
CITY@MEETING DATE: May 15, 2012
ITEM TITLE: Approval of Demand Register Dated
May 15, 2012
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File ffie Demand Register Dated
May 15, 2012 of which $0.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account #: Amount: Purpose:
NOIN
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 Successor
Agency of the La Quinta Redevelopment Agency, when acting pursuant to the powers
granted under ABX1 26, are limited to the extent of the total sum of property tax revenues it
receives pursuant to part 1.85 of ABX1 26 (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.
003
Respectfully submitted,
aLhnM—
Approved for submission by:
Mark Weiss, Interim Executive Director
004
Taf 4 4 a"
MEETING DATE: Mav 15, 2012 AGENDA CATEGORY:
ITEM TITLE: Receive and File Treasurer's Report dated BUSINESS SESSION:
March 31, 2012 CONSENT CALENDAR- Z,
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the Successor Agency to the La Quinta Redevelopment Agency:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENCA
005
MEETING DATE: May 15, 2012 AGENDA CATEGORY:
ITEM TITLE: Receive and File Revenue and Expenditure BUSINESS SESSION:
Report dated March 31, 2012 CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Receive and File.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Receive and File the March 31, 2012 Statement of Revenue and Expenditures for the
Successor Agency to the La Quinta Redevelopment Agency.
Respectfully submitted,
M
John M. Falcojner, Finance Director
Approved for submission by:
Mark Weiss, Interim Executive Director
Attachment: 1 . Revenue and Expenditures Report, March 31, 2012
d.:; 006
allCCESSOR AGENCY
REVENUE SUMMARY
A I I AUHIVILIM I I
07101/2011 .0313112012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
PROJECT AREA NO. I Admin (237)
County of Rwhade
Pool" Cash Allocated Intemst
Non Allocated lnt;mst
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Admin 1238)
County of I
Pooled Cash Allocated Interest
Non AlIocated Interest
Transfers In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - ADMIN
PROJECT AREA NO. I Pmgmm
County 0 Riverl
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT MEA NO. 2 Progra.
County of Riverside
Pooled Cash AIJ�tecl Interest
Non Allocated I rterest
Transfers In
TOTAL PA 2
286,UO 00
000
2W,540 00
0000%
000
(62 XI)
6209
0000%
0.00
000
000
0�%
coo
Goo
0 w
0()0()%
286 W 00
(6109)
2W,602 09
-0020%
141 131 00
000
. 141,131 W
0.000%
0 1
0�00
(rw
0000%
O,W
(14�87)
14.87
0.000%
0�w
0,00
0.00
0�000%
141,131 W
(14,87)
141,145.87
-0010%
427,671 W (7&%) 427�747 W -0 02D%
39,110,W
0,00
39,11000
0 000%
1
1,8%,55
(1,85655)
0000%
0 m
O,X
000
0 OW%
8 976,2�,00
5,961 52025
3,014,743 75
66410%
9015,37400
6,W3,376,W
3,051,997 20
w 150%
KOIX).00
0,00
1 84 090 W
0000%
0,00
65,20
(6520)
1)(10(r%
000
000
0 X)
O'DIX1%
555,17&00
58,28840
4%88960
10 5DO-/.
639,268,00
58,353,60
58091440
9,130%
TOTAL SUCCESSOR AGENCY - PROGRAM 9,654,1342 W 6,021,730 40 3632,91160 52,370%
TOTAL SUCCESSOR AGENCY 10,082,313 W 6,021,653 4 �0,659 56 59,720%
a 007
SUCCESSOR AGENCY ADJUSTED OW31112 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
237 PROJECT AREA NO. 1,
SERVICES "B" 00 C�w O,W 99.80400
REIMBURSEMENT TO GEN FUN[ 186,655.00 385,853.W 0 w (199,2W 00)
TRANSFERS OUT 0,00 0 w 0�w 000
TOTAL PA I - Admin 38b 00
2M PROJECT AREA NO. 2-
SERVICES
49,196,W
ow
O.W
REIMBURSEMENT TO GEN PUN[
91.WBW
92.400.M
om
(�5,w)
TRANSFERS OUT
o.w
o.w
0 w
O.W
TOTAL PA 2 - Admin
141.131,w
92 400
�000 W
Z�rfffW-
TOTAL SUCCESSOR AGENCY - Ad.In
.2w000 w
231 PROJECTAREANO.1,
SERVICES
36.4M.00
000
000
36,400,M
BOND PRINCIPAL
o,W
000
000 1
0 w
BOND INTEREST
o,W
000
000
o,W
REIMBURSEMENT TO GEN FUN[
2.710,W
000
000
2 710.W
TRANSFERS OUT
0 w
0 w
ow
000
TOTAL PA I - P�qm
u m
232 f!RQJECT AREA N9.21
SERVICES
516000
000
000
5100 00
BOND PRINCIPAL
BONDINTEREST
000
000
000
000
REIMBURSEMENT TO GEN FUN[
3249000
000
000
3249000
TRANSFERS OUT
000
0,00
0 w
O.W
TOTAL PA 2 - Prognm
84�090 W
TOTAL SUCCESSOR AGENCY - P.g..
123.200 W
TOTAL SUCCESSOR AGENCY 550.81100 47_9= 000 (2,61500 0 w
0 0 8
SUCCESSOR AGENCY TO THE
07JO112011 - 0313112012
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO, 1,
LOVIUMODERATE TAX FUND:
Tax Increment
4 123,224 0)
4,123,224 39
(039)
100.000%
Allocated Interest
44,600 00
7,226 48
37.37352
16100%
Non Allocated Interest
000
87840
(87840)
DOW%
Miscellaneous revenue
000
1226 22
(1226.22)
0 WO%
Non Allocated Interest
000
0 DO
000
0000%
Home Sales proceeds
D�00
000
000
0 DDD%
Sale of Land
000
0,00
0.00
0000%
Sewer Subsidy Reimbursements
000
1,467 34
(1,467 Fun
0,000%
R.h.ti Loan Repayments
am
000
000
DOW%
2nd Twat Deed Repayment
0.00
0,00
0 DO
0 000%
Williams Note payment
0 DO
0,00
0,00
0.000%
Things, In
2,7D7,78pl 00
2,70 78,137
(037)
00,000%
TOTAL LOWfMOD TAX
6,875,1508 00
33,800�30
99510%
DEBT SERVICE FUND:
Tax Increment
16 505,087 00
16,505,087 35
(035)
100000%
Allocated Interest
3,000.00
(13,122.95)
1612295
437 43M
Non Allocated Interest
0 DO
000
D.00
0.000%
Interest - County Loan
000
0,00
0�00
0000%
Interest Advance Proceads
0�00
000
000
0 ODD%
Tranders in
8,487,612 00
8 762,183 10
(274,571,10)
103230%
TOTAL DEBT SERVICE
24,995,699,00
25,25,1,147 50
12581,14&50)
101030%
CAPITAL IMPROVEMENT FUND
Fueled Cash Allocated Interest
25,700 DO
(8,28678)
�,98!5 78
-32,240%
Non Allocated Interest
is DD0.00
6574.73
12,22527
U 970%
Develolmar Agreement Funding
000
coo
0.0C
DOW%
Sale of Land proceeds
0,00
0,00
000
0000%
Rental Income
000
000
000
0000%
Litigation Procei
0 DO
0,00
000
0.000%
Transfers In
5 000,000 00
0 DO
5,000.000 00
0000%
TOTAL CAPITAL IMPROVEMENT
5,044,500.00
2011 TAXABLE HOUSING BOND FUND:
Foaled Cash Allocated Interest
000
000
000
0.003%
Non Allocated Interest
5.00000
6.39562
(1 �395 62)
127,910%
Developer Agreement Funding
000
0 DO
000
0 DOD%
Sale of Land proceeds
000
0.00
000
0000%
Rental income
0 DO
000
000
0000%
Litigation proceeds
0 00
0 DO
000
0000%
Transfers In
01
0.00
0 DO
0 000%
TOTAL W11 TAXA13LE HOUSING BOND
5,000 DO
6-395,62
(1,39562)
127,910%
SUCCESSOR AGENCY TO THE ADJUSTED 3131IM12 REMAINING
LA QUINTA REDVfELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. I I
LOWIMODERATE TAX FUND:
SERVICES
5n,850,00
275,165 51
000
247.683,49
BOND PRINCIPAL
1635,775 00
1 63577500
000
000
BONDINTEREST
3S50,670 00
3 850 627 49
000
42,51
2�d TRUST DEED PROGRAM
620,00() 00
81 ow 00
000
439,000 W
HABITAT FOR HUMANITY
300 160 00
5 1 w 00
000
295,060 W
LAND ACQUISITJON
000
000
000
0 00
LOW MOD HOUSING PROJECTS
0 00
000
000
0 00
FORECLOSURE
Boom m
000
0 OD
800 000,w
REIMBURSEMENT TO GEN FUNIL
461,741 W
413 550 06
000
48 190.94
TRANSFERS OUT
6 171 188 00
3�320,239 99
000
2,850 94B 01
TOTAL LOWIMOD TAX
14!262:384 W
9,591,459 05
0 OC
4
DEBTSERVICEFUND:
SERVICES 429.212 W 428,524,30 000 68730
BOND PRINCIPAL 3113,575.0 3.113.575�W 0.00 000
BONDINTEREST 6 675,388.00 6.675.386 76 0.00 124
PASS THROUGH PAYMENTS 9 820,486.00 9,820,484,57 0�00 143
ERAF SHIFT 0�00 0,00 0�w 000
CAPITAL IMPROVEMENT FUND:
SERVICES 205,7W 00 62,902,� 000
REIMBURSEMENT TO GEN FUN[ 271,98500 21373921 000
2011 TAXABLE HOUSING BONIXZ49)
SERVICES 11,000m 8.67822 0 DO 2,321 78
TRANSFERS OUT 25526567 12 " 31 1! MI 251�114.5()l 63
TOTAL W11 TAXABLE HOUSING BOND 25!53l!56TWm 20:9749 Sg 0 2
-14.- 010
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO, 2,
LOWIMODERAITE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
De�eloperftundirq
2nd Trust Deed Repayment
Sale of Land
Transfer In
TOTAL LOWIMOD TAX
LOW(MODERATE BOND FUND:
Allocateol Interest
He.. Sale Proceeds,
Non Allocated Interest
Transfer In
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Interest Advanee Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Allocated Interest
M,sc Revenue
Sale & land
Transfers In
TOTAL CAPITAL IMPROVEMENT
07/DI12011 - ON3112012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
2,3,11.482 00
2,341,482 34
(au)
100.000%
W,800 w
23.98973
W,810 27
39.,160%
0,00
0 DO
000
0000%
0�00
D.w
000
0 ODD%
0,00
8,741,99
(8, 7" 99)
D."%
0,00
Coo
0,w
0.000%
0 w
0,00
000
0.0,X%
2,402,282 GO
2 374,217,013
28,064.94
98,8tX%
0.00
0.00
0 00
0,000%
000
ow
0 x
0��%
5w.co
44689
53 11
893130%
0�00
0.00
0 X
0000%
wo�oo
"13.89
53,11
89 3w%
9,365.929.00
9,365,929 37
(0,37)
1w 000%
20000
(15,788 12)
15,988,12
-7894 W0%
000
308 M
(30800)
0000%
0,00
0 (10
000
0 000%
2 � 00
(65 595 40)
68,25540
-2,165 990%
9.366 789,00
9.284 , 85385
83935,15
99 IW%
0 00
2,00827
(2.00827)
0000%
76.80200
65,07681
11,725,19
84 730%
0,00
0 00
0 w
00()0%
0,00
0.00
0 00
o(XX)%
1,650 000,00
0 00
1,650 wo w
0,00Tk
1,7M,W2 W
57,�5.08
1659 716,92
3,880%
2011 TAXABLE NON -HOUSING BOND FUND:
Pooled! Cash Allocated Interest
0,00
000
0,00
0�000%
Non Allocated Interest
0.00
17500
(17500)
0,000%
Dewloper Agreement Funding
0.00
000
0�00
0000%
Sale of Land proceeds
0,00
000
0,00
0000%
Rental Income
0=
0.00
0,w
0,0XI%
Liligaton Pnoceeds
0,w
000
0,00
0000%
Transfers In
0,w
000
000
0.000%
TOTAL 2011 TAXABLE NON -HOUSING BOND
0,00
��-2-000-%
Oil
L,
SUCCESSOR AGENCY TO THE
ADJUSTED
W3112012
REMAINING
LA QUINTA REDEVELOPMENT AGENCY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
EXPENDITURE SUMMARY
PROJECTARERNO.2-
LOWIMOMRATE TAX FUND:
SERVICES
325,3N 00
15739264
000
167,997,36
BOND PRINCIPAL
595,6M 00
595 6M 00
000
0 00
BOND INTEREST
1.872.502,100
l,a72,5,W,S,I
0,00
(42 5,1)
2ND TRUST DEEDS
0,00
0,w
0 w
0,00
LOW MOD HOUSING PROJECTS
3.0W W
c.w
0 w
3,000 00
FORECLOSURE ACQUISITION
4M,000,00
O,w
G,w
450.W0 00
REIMBURSEMENT TO GEN FUNE
261 620�00
2�,� 62
000
27.07538
TRANSFERS OUT
12,101 5M 00
1 1 693 3.
omo
0
TOTAL LOWIMOD TAX
lb.W9,14600
4 1.1A Tg
00,
� T 9918985� V4
2M LOWNODERATE BOND FUND
HOUSING PROGRAMS
0,00
000
000
0,00
LAND
000
000
000
om
TRANSFERS OUT
330715500
N3� 41
0,00
3 N5 922 57
TOTAL LOWRIOD BOND --TM7'l3Ha
22312
n 243
�u�
J.�b 922 57
DEBT SERVICE FUND:
SERVICES
246 ()BB 00
241,542,80
000
4,52520
BOND PRINCIPAL
360 ow 00
130,0000
000
2�,000 00
BOND INTEREST
�3,8,13 00
633,U3,95
000
(095)
PASS THROUGH PAYMENTS
8,215.N3,00
8.019B32,65
0 w
1%,010�35
ERAF SHIFT
0=
0,w
0,w
a w
TRANSFERS OUT
2,205,178,W
221!325121�
0 M
1 "S" 19
TOTAL DEBT SERINCE --TfM=M
'244 74
a m
2 4S3 ;9 79
CAPITAL IMPROIIEAIENT FUND:
SERVICES
99.8,15,00
60.665 88
000
39179.12
CAPITAL
0 00
0 m
om
000
REIMBURSEMENT TO GEN FUN[
91,59200
63.074Al
0�w
2851789
2011 RDA 2 TAXABLE BOND FUNI
SERVICES 11,500�w 8.491,31 0�00 3,08,69
ECONOMIC DEVELOPMENT 1.5X).000= 159,57856 000 1,3�,421,"
TRANSFERS OUT 2.422,W=
TOTAL RDA NO. 2 TAXABLE BOND "02 !72'9' 612 0000 2:420,286,18
g 00 1 1.. 1 1� I I
012
Reports & Informational Item No.: -Lst"
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
MINUTES
Regular Meeting
WEDNESDAY, APRIL 18, 2012 at 2:00 p.m.
ROLL CALL - Present: Board Members Ellis, Marshall, Maysels, Nelson,
Osborne and Chairperson Pefia
Absent: Board Member McDaniel
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
PRESENTATIONS - None
APPROVAL OF MINUTES
MOTION: A motion was made by Osborne/Maysels to approve the minutes from
the April 4, 2012 Oversight Board meeting. Motion carried 5 ayes, 1 absent, 1
abstain (Board Member Nelson - due to absence at April 4, 2012 meeting).
WRITTEN COMMUNICATION - None
CONSENT ITEMS - None
BUSINESS ITEMS
1 Consideration of Adoption of a Resolution Authorizing the Transfer of
Housing Properties from the Former La Quinta Redevelopment Agency to
the La Quinta Housing Authority.
Staff presented staff report.
Board Member Nelson asked staff what happens if the Board does not
approve the transfer of the housing properties. Staff indicated that the
assumption is that by operation of the law, the properties do belong to the
La Quinta Housing Authority. Kathy Jenson, Rutan & Tucker, counsel for
the Successor Agency, said that some of the foreclosed homes are in the
61 013
process of sale and the title companies are asking for the approval. If the
Board does not approve the transfer, Attorney Jenson does not know what
happens in that case. She understood that the properties just automatically
transfer because the redevelopment agency no longer exists and an asset
cannot be held by an entity that is not in existence.
Board Member Nelson indicated that his understanding is that the Successor
Agency would then own the properties. Attorney Jenson answered yes but
explained that the law also provides that the Successor Agency can elect to
have those properties go to their housing authority.
Board Member Nelson asked what happens to the funds from the properties
once the title is transferred to the Housing Authority. Staff indicated that
the funds belong to the Housing Authority and any proceeds received from
the sale of the homes were to fund the silent second trust deed for the next
sale. Board Member Nelson asked if the Housing Authority has a positive
cash balance. Staff indicated that they do.
Board Member Nelson asked if the Successor Agency owns the property and
the property is transferred to the Housing Authority, how are the other
taxing entities losing out or gaining from the transactions. Frank Spevacek,
FISG, Inc., explained that when ABx1 26 was put into place, it was assumed
and the legislation calls for housing assets not to be shared with the taxing
agencies but instead to be used for affordable housing. In this case, the
taxing agencies would not get any income from the sale or disposal of those
assets or from any rental income that those assets may accrue.
Board Member Nelson was concerned about how the transfer of the
properties would affect the other agencies. He understood, by the law, that
all assets should be disposed of and had no clarification as to whether the
assets should go to the Housing Authority.
Board Member Marshall explained that there is a differentiation in the law
with regard to the assets and the housing assets. There is a differentiation
also as to the successor agency and what has come to be known as the
housing successor agency. There are two places in the law regarding the
assets and where they go, including land. Further, by operation of law, ' the
housing assets, except for the remaining funds in the "unspent balance" of
the housing funds is the only thing that goes to the successor agency, not
the assets. This is why the assumption initially was made that the assets
would go straight to the housing successor agency - i n this case, th e
housing authority. There is proposed legislation that also deals with that
topic for further clarification, For the most part, most successor agencies
OVERSIGHT BOARD MINUTES 2 APRIL 18, 20V 014
are taking the stand that the housing assets are going straight to the housing
successor agency.
Board Member Nelson asked if there is a differentiation between a built
house and vacant land. Attorney Jenson responded that, according to the
law, anything that was purchased with affordable hous ' ing funds is a housing
asset. 34181 (c) states that the oversight board is supposed to make sure
that the housing responsibilities, powers, duties, assets and obligations are
separated and to make sure they get to the appropriate entity. Pursuant to
34176, which states that the city that authorize the Redevelopment Agency
(-RDA-) may elect to retain housing assets and functions previously
performed by the RDA, if not, then it goes to the housing authority if the city
has one and if not, to the county housing authority. This provision allows
the successor agency to either keep the housing assets (defined as all
property purchased with affordable housing funds) or transfer the assets to
the housing successor.
Board Member Nelson asked why this matter would come before the Board if
it is the City's choice as to where the funds go. Attorney Jenson indicated
that there are families waiting to buy these homes and escrow cannot close
until the transfers are approved by the oversight board and the Department
of Finance ("DOF").
Comment from public: Kay'Wolff, 77227 Calle Ensenada:
Ms. Wolff asked about vacant lots in either residential or
commercial areas and wanted to know whether the RDA
originally planned for affordable houses to be built on those lots
in the future or to sell them off to generate money for the
agency. She mentioned a particular interest in the large lot on
the north of the community park, which is in a commercial area
and whether that property is going to be designated for housing
or for parking lots.
Chairperson Pefia stated that it was his understanding that there are
affordable housing dollars that are spent on certain things and those funds
would go to affordable housing as well as other redevelopment dollars that
would go to other purchases. Frank Spevacek referred to the attachments in
thestaff report showing the vacant lots in the Cove. These properties have
been acquired over time when La Quinta Redevelopment Agency ("Agency")
was working with Habitat for Humanity and prior to that Building Horizons to
purchase vacant lots so they could be developed into single family homes to
be sold to very low- or low-income households. All of those vacant lots
were purchased with the Agency's affordable housing funds, not with non -
OVERSIGHT BOARD MINUTES 3 APRIL 18, 2012 - - 015
housing funds. The parcels north of La Quinta Park were purchased in 2007
from the Ostrowsky estate and were purchased with affordable housing
funds. The purpose was to do affordable housing on that site, not
commercial development or parking lots. All of this has been put on hold
due to the Governor's proposal to shut down redevelopment agencies.
Further, the Coral Mountain property and the property at Dune Palms and
Westward Ho, approximately 5.2 acres, were purchased with affordable
housing funds to both remediate older dilapidated units that were occupying
the properties and to assemble the property for affordable housing
development. The Agency was in an exclusive negotiation agreement with
Bridge Housing to move forward to start structuring a disposition and
development agreement to develop the property and then that was put on
hold when the Governor's proposal came out last year.
Regarding the Washington Street Apartments ("WSA") property as well as
5.7 acres of vacant property next to it, the Agency was poised to start
substantial rehabilitation on Washington Street Apartments and that project
was put on hold because of the Governor's proposal. Also, the thought was
to do additional senior and special needs housing on the vacant property
behind WSA. Both of those properties were also purchased with Agency
low- and moderate -income housing funds.
Board Member Nelson asked how the Agency's low- and moderate -income
funds were put into the redevelopment agency. Mr. Spevacek explained that
after the redevelopment project area was established, the revenue that the
RDA would receive would be the difference between the base year and the
subsequent year's values. Under the law, the RDA was mandated to set
aside 20% of that revenue to fund affordable housing development and
substantial rehabilitation. Funds were put aside every year. In 2004 and
2011, the Agency elected to leverage those funds to support bonds that
then allowed the RDA to do to more affordable housing activities.
Board Member Maysels asked if the title companies will be comfortable with
moving forward once they get the approval of the Board or do they have to
wait for the DOF to make final approval. Mr. Spevacek stated that, based
on what the title companies have said, in addition to having the Board's
approval and waiting for the DOF review, the title companies are requesting
a letter specifically from the DOF stating that they agree to allow the transfer
or the use of the housing properties for affordable housing development.
The next step is to make that request based upon the direction of the Board.
A motion was made by Board Member Nelson to amend the resolution to
approve for transfer to the Housing Authority all properties that currently
OVERSIGHT BOARD MINUTES 4 APRIL 18,' 1012 016
have developmental plans, and to hold in abeyance for legal counsel review
any vacant land that does not have documented development plans. Motion
failed for lack of second.
Chairperson Pefia indicated that he has a conflict with one of the properties
on Exhibit "A" of the resolution due to proximity to a property he owns. It is
Assessor's Parcel Number 773-234-015. Board Members Marshall/Osborne
amended the motion to exclude APN 773-234-015.
RESOLUTION NO. OB 2012-008
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN ACKNOWLEDGMENTS AND
APPROVALS WITH RESPECT TO CERTAIN HOUSING
PROPERTIES PREVIOUSLY OWNED BY THE LA QUINTA
REDEVELOPMENT AGENCY
MOTION: A motion was made by Marshall/Osborne to adopt, Resolution No.
OB 2012-008 authorizing the transfer of housing properties from the Former
La Quinta Redevelopment Agency to the La Quints Housing Authority with
the exclusion of APN 773-234-015. Motion carried by, a vote of 5 ayes, 1
nay (Board Member Nelson), 1 absent.
RESOLUTION NO. OB 2012-009
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN ACKNOWLEDGMENTS AND
APPROVALS WITH RESPECT TO ASSESSOR'S PARCEL
NUMBER 773-234-015 PREVIOUSLY OWNED BY THE LA
QUINTA REDEVELOPMENT AGENCY
MOTION: A motion was made by Marshall/Maysels to adopt Resolution No.
OB 2012-009 authorizing the transfer of Assessor's Parcel Number 773-234-
015 from the former La Quinta Redevelopment Agency to the La Quinta
Housing Authority.
Motion carried by a vote of 4 ayes, 1 nay (Board Member Nelson), 1 absent,
1 abstain (Chairperson Pefla).
2. Consideration of Adoption of a Resolution Approving the Sale of Homes to
Income -Qualified Buyers That Were Purchased Under the Home Foreclosure
Purchase Program.
017
OVERSIGHT BOARD MINUTES 5 APRIL 18, 2012
Staff presented staff report.
RESOLUTION NO. OB 2012-010
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN ACKNOWLEDGMENTS AND
APPROVALS WITH RESPECT TO THE SALE OF CERTAIN
SINGLE FAMILY HOMES BY THE LA QUINTA HOUSING
AUTHORITY
MOTION: A motion was made by Nelson/Marshall to adopt Resolution No.
OB 012-010 as submitted approving the sale of homes to income -qualified
buyers that were purchased under the Home Foreclosure Purchase Program.
Motion carried by a vote of 6 ayes, 0 nays, 1 absent.
STUDY SESSION — None
REPORTS AND INFORMATIONAL ITEMS — In response to the Board's question
regarding Board alternates, Attorney Jenson gave an update to the Board as to the
law and appointment of alternates. The law does not say anything about
appointing alternates for the Oversight Board. Currently, County Counsel has
indicated that the County of Riverside does not plan to include alternates but has
no objection if any of the other agencies decide to appoint alternates. Attorney
Jenson said she will distribute the League of California Cities "Q&A" as soon as it
is available in order to assist the Board in deciding whether or not they would like
to have alternates. She suggested to the Board Members to talk to their appointing
agency to see if they felt it necessary to have an alternate.
— None
CHAIR AND BOARD MEMBERS' ITEMS -
Board Member Nelson inquired about legislation of the Oversight Board and the
functions of the Oversight Board. He understands that functions of the Board are
to approve successor agency actions and to direct successor agency activities.
Board Member Nelson asked if the Board could obtain a copy of a list of assets.
Staff indicated that the Successor Agency has a list of the assets and that list will
be provided to the Board.
Board Member Osborne asked Attorney Jenson if that means that this Oversight
Board has authority over the Successor Agency. Attorney Jenson said that it can
direct the Successor Agency to get rid of assets that the Successor Agency
OVERSIGHT BOARD MINUTES 6 APRIL 18, 2012- 4 018
succeeded to. With regard to real property, there is very limited real property that
is on the list. I
Board Member Nelson mentioned that it would be helpful to the Board to receive
communication once the three-day/ten-day notification periods have passed as to
what the DOF has decided regarding the decisions made by the Board. Chairperson
Pefia agreed.
Board Member Nelson asked about legal counsel for the Oversight Board indicating
that Attorney Jenson represents the City and the Successor Agency and
understands that she is there to assist through the process. Attorney Jenson
suggested that the Board members contact the legal counsel for their appointing
authority if there are questions. She indicated that she cannot give legal advice to
the Board because her interest is solely with the City. Board Member Nelson
questioned whether legal representation for the Board was listed in the budget. He
stated that he feels it may be helpful if the Board had counsel of its own and that
the majority of other Boards have legal counsel. Chairperson Pefia asked Nelson if
he knows whether legal counsel on these other boards has actually been retained.
Nelson answered yes.
Board Member Osborne asked what funds would be used to pay that position.
Board Member Nelson indicated that it would be from the Oversight Board
administrative budget. Osborne indicated that there are no funds in that budget for
legal services and that would have been in the ROPS that has already been sent to
Sacramento. Chairperson Pefia asked staff if the ROPS can be amended. Staff
indicated that it wouldn't be the ROPS but part of the administrative budget so the
Board would have to amend the administrative budget, have the Successor Agency
re -approve it, the Oversight Board would re -approve it then it would go back to the
Auditor/Controller.
Mark Weiss, Interim City Manager stated that the challenge is that the Board has to
live within the confines of the 3% and 5% caps so the entire budget would have
be revisited to reallocate the funds according to those cap restrictions.
Board Member Marshall stated that on the other oversight boards that she is a
member of, they decided to keep the city's attorney on board with the
understanding that it was just for general counsel. If there is conflict with a
particular item, then they were advised to check with their own agency's counsel.
She indicated that this was due to a matter of finance and most agencies have
already used up the 3% that is allocated and it's not a luxury that many boards can
afford at this point.
OVERSIGHT BOARD MINUTES 7
..a . 019
APRIL 18, 2012 -
Board Member Ellis commented that he is a member of two other boards and they
have also been advised to use their own agency attorney when necessary.
Chairperson Pefia indicated that if there is a question by the State or they return
something back to the Board, maybe that would be the time that an item would go
back to individual legal counsel.
Board Member Maysels stated that her understanding of the legal fees on the
budgets for Board approval were for development agreements, negotiations, not for
Board representation. She suggested that after a Board Member receives their
agenda packet, perhaps they can pass it by their legal counsel to review as well.
Board Member Ellis agreed however, that is impractical and costly.
Chairperson Pefia stated that the communication matter regarding the three/ten day
notice will be added as an agenda item.
Staff asked the Board if the next meeting, May 2, 2012, can be canceled. The
Board agreed to cancel the May 2, 2012 meeting. Chairperson Petia indicated that
the next Board meeting will be May 16, 2012.
ADJOURNMENT — 2:45 p.m.
There be no further business, it was moved by Board Members Osborne/Ellis to
adjourn the meeting.
Respectfully submitted,
Oversight Board
OVERSIGHT BOARD MINUTES 8 APRIL 18, 2012-' 020