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2013 11 19 SAAgendas and staff reports are now available on the City's web page: www.la-guinta.org SUCCESSOR AGENCY To The La Quinta Redevelopment Agency AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta, CA REGULAR MEETING ON TUESDAY, NOVEMBER 19, 2013 AT 4:00 P.M. CALL TO ORDER ROLL CALL: Agency Members: Evans, Franklin, Henderson, Osborne, Chairperson Adolph 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. The Successor Agency values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CLOSED SESSION - NONE CONFIRMATION OF AGENDA PRESENTATIONS — NONE WRITTEN COMMUNICATIONS — NONE APPROVAL OF MINUTES MINUTES OF OCTOBER 15, 2013 PAGE 4 SUCCESSOR AGENCY TO RDA AGENDA 1 NOVEMBER 19, 2013 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1 RECEIVE AND FILE TREASURER'S REPORT DATED SEPTEMBER 30, 8 2013 2. RECEIVE AND FILE REVENUE & EXPENDITURE REPORTS DATED 10 SEPTEMBER 30, 2013 3. APPROVE DEMAND REGISTER DATED NOVEMBER 19, 2013 18 BUSINESS SESSION - NONE STUDY SESSION - NONE DEPARTMENT REPORTS - NONE ADJOURNMENT The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment Agency will be held on December 3, 2013 commencing with Closed Session at 3:00 p.m. and open session at 4:00 p.m. at City Hall, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING 1, Teresa Thompson, Deputy City Clerk of the City as Successor Agency to the La Quinta Redevelopment Agency, do hereby declare that the foregoing agenda was posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas and at the Stater Brothers Supermarket at 78-630 Highway 111 , on November 15, 2013. DATED: November 15, 2013 TERESA THOMPSON, Deputy City Clerk Successor Agency to the La Quinta Redevelopment Agency SUCCESSOR AGENCY TO RDA AGENDA 2 NOVEMBER 19, 2013 Public Notices The La Quinta City Hall 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 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. SUCCESSOR AGENCY TO RDA AGENDA 3 NOVEMBER 19, 2013 SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY MINUTES TUESDAY, OCTOBER 15, 2013 A regular meeting of the La Quinta City Council in their capacity as Successor Agency to the La Quinta Redevelopment Agency ("SA") was called to order at 3:04 p.m. by Chairperson Adolph. PRESENT: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph ABSENT: None PUBLIC COMMENT - None CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a), CITY OF LA QUINTA, ET AL. v. MATOSANTOS, ET AL., SACRAMENTO COUNTY SUPERIOR COURT CASE NO. 34-2013-80001485 THE A GENC Y RECESSED TO THE JOINT CLOSED SESSION OF THE CITY COUNCIL AND SUCCESSOR AGENCYAT 3:04 P.M. CHAIRPERSON ADOLPH RECONVENED THE SUCCESSOR AGENCY MEETING AT 6:09 P.M. WITH ALL MEMBERS PRESENT. NO ACTIONS WERE TAKEN IN CLOSED SESSION THAT REQUIRE REPORTING PURSUANT TO GOVERNMENT CODE SECTION 54957.1 (BROWN ACT). PUBLIC COMMENT - None CONFIRMATION OF AGENDA Agency Member Evans requested that Consent Item No. 4 be pulled for separate discussion and vote. Agency Members concurred. PRESENTATIONS - None WRITTEN COMMUNICATIONS - None CITY AS SUCCESSOR AGENCY TO RDA OCTOBER 15, 2013 4 APPROVAL OF MINUTES MOTION - A motion was made and seconded by Agency Members Evans/Franklin to approve the minutes of October 1, 2013 as submitted. Motion passed unanimously. CONSENT CALENDAR 1 RECEIVE AND FILE TREASURER'S REPORTS DATED JULY 31, 2013 AND AUGUST 31, 2013 2. RECEIVE AND FILE REVENUE & EXPENDITURE REPORTS DATED AUGUST 31, 2013 AND INVESTMENT SUMMARY REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2013 3. APPROVE DEMAND REGISTER DATED OCTOBER 15, 2013 4. (Pulled by Agency Member Evans and moved to the Business section for separate discussion and vote) AUTHORIZE THE EXECUTIVE DIRECTOR TO TRANSFER UP TO $41,431,179 TO THE COUNTY OF RIVERSIDE AUDITOR - CONTROLLER MOTION - A motion was made and seconded by Agency Members Franklin/ Osborne to approve the Consent Calendar as recommended, with the exception of Item No. 4. Motion passed unanimously. BUSINESS SESSION Consent Calendar Item No. 4 - AUTHORIZE THE EXECUTIVE DIRECTOR TO TRANSFER UP TO $41,431,179 TO THE COUNTY OF RIVERSIDE AUDITOR - CONTROLLER Agency Members requested that the Agency Secretary copy their comments from the City Council Meeting Minutes on this same item and insert them here for the record. From the City Council Meeting Minutes of October 15, 2013, Business Item No. 1: Councilmember Evans stated that she could not approve writing a check to the State of California for $41 million without comment. This is another opportunity to plead the City's case against the Governor's method of piecemeal legislation, and reiterate the City's fight to retain the funds it legitimately utilized through written contractual loans from the City's General Fund to the former La Quinta Redevelopment Agency. The City has now received a letter of demand for the $41 million from the State yet the City has not yet received the court's decision on its appeal. Ms. Evans said that CITY AS SUCCESSOR AGENCY TO RDA 2 OCTOBER 15, 2013 5 although the City's course may be near the end of its track and the City might eventually need to write that check, it is with discontent to say the least. The Council has done everything imaginable legally without stopping the progression of our City, a City that this Council and prior Councils have worked hard to make economically viable and a great place to live, work and shop. She said that sending $41 million to the State would not hinder the Council from continuing its work, but it is running out of options to proceed with some of its goals and objectives. At the 11 1h hour, when there are no other options, Ms. Evans supports the City Manager in taking necessary actions including releasing the $41 million to the State. She felt it is important for the community to know that this State demand is unfair, but fortunately, the City does have the $41 million to hand over, and the City will still be successful despite that. Councilmember Osborne said that he was in the court room during the appeal hearing and regarding the contractual obligations of the RDA to the City, the judge said that since the loan docs prepared 30 years ago did not have language stating that repayment in full would be due if the RDA was to be dissolved, the City cannot demand repayment now. Mr. Osborne noted that no city would have known 30 years ago that the State would unilaterally dissolve all RDAs and that the State is making up the rules as they go regardless of the State Constitution and the City's rights. It is ludicrous that the State can come in and take $41 million from this community. Councilmember Henderson said that there are 380 redevelopment agencies in the State in similar circumstances and approximately 150 of them have active lawsuits against the State. She said that La Quinta's attorneys have done an excellent job for the City in presenting its legal case; she finds it incredible that after hearing the City legal arguments, the State can disagree with a straight face. Ms. Henderson said that collusion at the State level is obvious and the City must be very careful about every move it makes because the State is still looking for more money. Councilmember Franklin said that the State of California no longer has democracy; it has a demigod who proceeds with whatever he chooses to do. The dissolution of the RDAs could have been done in a more appropriate manner, giving cities time to do what needed to be done. Instead, this law was imposed and the State included a claw -back provision negating transactions preparing for the dissolution. La Quinta is being hit for $41.4 million for being fiscally responsible. It is punitive. The City did nothing illegal. Ms. Franklin said that the City has an option, which is not to pay the $41 million and has contemplated this course of action. However, the State has said that it will withhold payment of the City's portion of property and sales taxes, which is City money, not RDA money. This State action would CITY AS SUCCESSOR AGENCY TO RDA 3 OCTOBER 15, 2013 6 amount to the comingling of funds, which the State Constitution prohibits. Ms. Franklin would like the record to reflect her incredible fury at having to write this check and her frustration at delaying plans for the City's future because no one knows what the State will pull next. Councilmember Evans said the Council has an obligation to 40,000 residents. The Council prides itself on making good decisions, which is evident based on this money being there. She said the Council would continue to see that this City thrives, finds ways to generate revenue, and hopefully the State will not come up with new ways of taking more City funds to offset their poor management of the State budget. Mayor Adolph said that the City made a great argument showing the legality of its case but the judge chose to support the Governor and fill the deficit the State created rather than do what is best for citizens. Mayor Adolph concluded that as a result of seeing judges in action, he would never again vote for an incumbent State judge. This action hurts the City's economy, its infrastructure, and its development, and this extends beyond La Quinta to all nine cities in the Coachella Valley. He said La Quinta would overcome this and move forward in its typical progressive, yet fiscally conservative way. MOTION - A motion was made and seconded by Agency Members Evans/Franklin to authorize the Executive Director to transfer up to $41 431,179 to the County of Riverside Auditor -Controller. Motion passed unanimously. STUDY SESSION - None DEPARTMENT REPORTS 1 . EXECUTIVE DIRECTOR - OVERSIGHT BOARD REPORT Executive Director Spevacek gave a verbal report on the actions of the Oversight Board Meeting of October 2, 2013. ADJOURNMENT There being no further business, it was moved and seconded by Agency Members Evans/ Henderson to adjourn at 6:12 p.m. Motion passed unanimously. Respectfully submitted, SUSAN MAYSELS, Agency Secretary Successor Agency to the dissolved La Quinta Redevelopment Agency CITY AS SUCCESSOR AGENCY TO RDA 4 OCTOBER 15, 2013 7 0 OF CITY /FSA]/ HA / FA MEETING DATE: November 19, 2013 AGENDA CATEGORY: ITEM TITLE: RECEIVE AND FILE TREASURER'S REPORT BUSINESS SESSION: DATED SEPTEMBER 30, 2013 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Receive and file. FISCAL IMPACT: None. BACKGROUNDANALYSIS: Per City Investment Policy, these items are presented on a monthly basis reflecting the monthly Cash Balances, Investment Activities and the Portfolio Performance, which is presented in the City Council's Consent Item Staff Report. ALTERNATIVES: None. Report prepared by: Robbeyn Bird, Finance Director Report approved for submission by: Frank J. Spevacek, City Manager 8 OF CITY /FSA] / HA / FA MEETING DATE: November 19, 2013 ITEM TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED SEPTEMBER 30, 2013 RECOMMENDED ACTION: Receive and file. EXECUTIVE SUMMARY: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The monthly and year-to-date revenues and expenditures of the Successor Agency to the La Quinta Redevelopment Agency dated September 30, 2013 are hereby submitted for the Successor Agency Board to review, receive, and file. FISCAL IMPACT: None. BACKGROUNDANALYSIS: Revenue and expenditure reports are submitted to the Successor Agency Board monthly to review, receive, and file. Attached is the transmittal of the September 30, 2013 Statements of Revenues and Expenditures for the Successor Agency to the La Quinta Redevelopment Agency. Actual revenues received and expenditures spent are $14,086 and $6,663,403. The funds budgeted are based on estimates listed on the Recognized Obligation Payment Schedule (ROPS) and revenues are received in January and June of each year. The expenditures represent the bond interest and principal payments and administrative costs. ALTERNATIVES: None. a Report prepared by: Robbeyn Bird, Finance Director Report approved for submission by: Frank J. Spevacek, City Manager Attachments: 1. Revenue Reports for September 30, 2013 2. Expenditure Reports for September 30, 2013 Is 07/01/2013 - 09/30/2013 SUCCESSOR AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. I Admin (237) County of Riverside 579,200.00 0.00 579,200.00 0.000% Pooled Cash Allocated Interest 2,000.00 0.00 2,000.00 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL PA 1 581,200.00 0.00 581,200.00 0.000% TOTAL SUCCESSOR AGENCY - ADMIN 581,200.00 0.00 581,200.00 0.000% PROJECT AREA NO. I Project (231) County of Riverside 19,308,200.00 0.00 19,308,200.00 0.000% Pooled Cash Allocated Interest 13,200.00 (2,877.80) 16,077.80 -21.800% Non Allocated Interest 0.00 9,503.65 (9,503.65) 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL PA 1 19,321,400.00 6,625.85 19,314,774.15 0.030% TOTAL SUCCESSOR AGENCY - PROGRAM 19,321,400.00 6,625.85 19,314,774.15 0.030% TOTAL SUCCESSOR AGENCY 19,902,600.00 6,625.85 19,895,974.15 0.030% 12 SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 1: LOW/MODERATE TAX FUND: County of Riverside Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest Transfer In TOTAL LOW/MOD TAX DEBT SERVICE FUND: County of Riverside Allocated Interest Non Allocated Interest Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND Pooled Cash Allocated Interest Non Allocated Interest Developer Agreement Funding Sale of Land Proceeds Rental Income Litigation Proceeds Transfers In TOTAL CAPITAL IMPROVEMENT 07/01/2013 - 09/30/2013 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 0.00 0.00 0.00 0.000% 0.00 (1.14) 1.14 0.000% 0.00 866.81 (866.81) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 865.67 (865.67) 0.000% 0.00 0.00 0.00 0.000% 0.00 (0.04) 0.04 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 (0.04) 0.04 0.000% 0.00 0.00 0.00 0.000% 0.00 1,165.93 (1,165.93) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 1,165.93 (1,165.93) 0.000% 2011 TAXABLE HOUSING BOND FUND: (249) Pooled Cash Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 4,342.12 (4,342.12) 0.000% Developer Agreement Funding 0.00 0.00 0.00 0.000% Sale of Land Proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 0.00 0.00 0.000% Litigation Proceeds 0.00 0.00 0.00 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL 2011 TAXABLE HOUSING BOND 0.00 4,342.12 (4,342.12) 0.000% TOTAL SUCCESSOR AGENCY - PA 1 0.00 6,373.68 (6,373.68) 0.000% 13 SUCCESSOR AGENCY TO THE 07/01/2013 - 09/30/2013 LA QUINTA REDEVELOPMENT AGENCY ADJUSTED REMAINING % REVENUE SUMMARY BUDGET RECEIVED BUDGET RECEIVED PROJECT AREA NO. 2: LOW/MODERATE TAX FUND: County of Riverside 0.00 0.00 0.00 0.000% Allocated Interest 0.00 (2.33) 2.33 0.000% Non Allocated Interest 0.00 0.00 0.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOW/MOD TAX 0.00 (2.33) 2.33 0.000% 2004 LOWIMODERATE BOND FUND: Allocated Interest 0.00 0.00 0.00 0.000% Home Sale Proceeds 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 307.62 (307.62) 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL LOW/MOD BOND 0.00 307.62 (307.62) 0.000% DEBT SERVICE FUND: County of Riverside 0.00 0.00 0.00 0.000% Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 199.06 (199.06) 0.000% Interest Advance Proceeds 0.00 0.00 0.00 0.000% Transfer In 0.00 0.00 0.00 0.000% TOTAL DEBT SERVICE 0.00 199.06 (199.06) 0.000% 2011 TAXABLE NON -HOUSING BOND FUND: (417) Pooled Cash Allocated Interest 0.00 0.00 0.00 0.000% Non Allocated Interest 0.00 582.00 (582.00) 0.000% Developer Agreement Funding 0.00 0.00 0.00 0.000% Sale of Land Proceeds 0.00 0.00 0.00 0.000% Rental Income 0.00 0.00 0.00 0.000% Litigation Proceeds 0.00 0.00 0.00 0.000% Transfers In 0.00 0.00 0.00 0.000% TOTAL 2011 TAXABLE NON -HOUSING BOND 0.00 582.00 (582.00) 0.000% TOTAL SUCCESSOR AGENCY - PA 2 0.00 1,086.35 (1,086.35) 0.000% TOTAL SUCCESSOR AGENCY 19,902,600.00 14,085.88 19,888,514.12 0.071% 14 SUCCESSOR AGENCY EXPENDITURE SUMMARY ADMIN RPTTF ADJUSTED 09/30/13 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET SERVICES 195,000.00 27,799.47 0.00 167,200.53 REIMBURSEMENT TO GEN FUND 387,100.00 0.00 0.00 387,100.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL PA 1 - Admin 582,100.00 27,799.47 0.00 554,300.53 TOTAL SUCCESSOR AGENCY - Admin 582,100.00 27,799.47 0.00 554,300.53 SERVICES 0.00 0.00 0.00 0.00 BOND PRINCIPAL 6,190,000.00 0.00 0.00 6,190,000.00 BONDINTEREST 13,118,200.00 6,635,348.65 0.00 6,482,851.35 REIMBURSEMENT TO GEN FUND 0.00 0.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL PA I - Program 19,308,200.00 6,635,348.65 0.00 12,672,851.35 TOTAL SUCCESSOR AGENCY - Program 19,308,200.00 6,635,348.65 0.00 12,672,851.35 15 SUCCESSOR AGENCY TO THE ADJUSTED 9/30/2013 REMAINING LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET EXPENDITURE SUMMARY PROJECT AREA NO. 1: CAPITAL IMPROVEMENT FUND: SERVICES 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 0.00 0.00 0.00 0.00 TRANSFERS OUT 13,208,161.00 255.14 0.00 13,207,905.86 TOTAL CAPITAL IMPROVEMENT 13,208,161.00 255.14 0.00 13,207,905.86 2011 TAXABLE HOUSING BOND(249) SERVICES 0.00 0.00 0.00 0.00 TRANSFERS OUT 25,514,502.00 0.00 0.00 25,514,502.00 TOTAL 2011 TAXABLE HOUSING BOND 25,514,502.00 0.00 0.00 25,514,502.00 TOTAL SUCCESSOR AGENCY - PA 1 38,722,663.00 255.14 0.00 38,722,407.86 SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO. 2: ADJUSTED 9/30/2013 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET 2004 LOW/MODERATE BOND FUND HOUSING PROGRAMS 0.00 0.00 0.00 0.00 LAND 0.00 0.00 0.00 0.00 TRANSFERS OUT 2,564,204.00 0.00 0.00 2,564,204.00 TOTAL LOW/MOD BOND 2,564,204.00 0.00 0.00 2,564,204.00 2011 RDA 2 TAXABLE BOND FUND:(417) SERVICES 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT 0.00 0.00 0.00 0.00 TRANSFERS OUT 2,399,786.00 0.00 0.00 2,399,786.00 TOTAL RDA NO. 2 TAXABLE BOND 2,399,786.00 0.00 0.00 2,399,786.00 TOTAL SUCCESSOR AGENCY - PA 2 4,963,990.00 0.00 0.00 4,963,990.00 TOTAL SUCCESSOR AGENCY 63,576,953.00 6,663,403.26 0.00 56,913,549.74 16 17 OF CITY /[SA / HA / FA MEETING DATE: November 19, 2013 ITEM TITLE: APPROVE DEMAND REGISTER DATED NOVEMBER 19, 2013 RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Receive and file demand register dated November 19, 2013, of which $41,338,707.29 represents Successor Agency expenditures as detailed below: Vendor: Account No.: Amount: Purpose: Riverside Co Auditor DOF Reimbursement $41,378,966.00 Unencumbered Funds Rutan & Tucker Cont. Svc./Attorney $ 5,141.29 SA-AB26 Rutan & Tucker Cont. Svc./Attorney $ 4,000.00 Retainer Willdan Financial Cont. Svc./Consultants $ 600.00 12/13 CDIAC Report BACKGROUND/ANALYSIS: The City has elected to be the Successor Agency of the La Quinta Redevelopment Agency. The Successor Agency shall continue to make payments required pursuant to an adopted enforceable obligations payment schedule. The payments included on this Demand Register represent the prior month's expenditures. ALTERNATIVES: None. Report prepared by: Sandra Mancilla, Account Technician Report approved for submission by: Robbeyn Bird, Finance Director 18 19