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Home My WebLink About7/28/2010 - STAFF REPORTS - 4.B. iZ u v+ C •aRarcv 4"Fogo . CITY COUNCIUCRA STAFF REPORT DATE: JULY 28, 2010 UNFINISHED BUSINESS SUBJECT: APPROVE SUPPLEMENTAL FUNDING FOR THE FACADE IMPROVEMENT PROGRAM AND THE COMMERCIAL INTERIOR REMODEL PROGRAM AND INITIAL FUNDING FOR THE NEW RESIDENTIAL CONSTRUCTION INCENTIVE PROGRAM AS PART OF THE CITY OF PALM SPRINGS ECONOMIC DEVELOPMENT PLAN. FROM: David H. Ready, City Manager BY: Thomas J. Wilson, Assistant City Manager SUMMARY The City Council will consider supplemental funding for the Facade Improvement Program and the Commercial Interior Remodel Program and initial funding for the New Residential Construction Incentive Program. RECOMMENDATION: 1. Approve supplemental funding in the amount of $100,000 for the Facade Improvement Program and $100,000 for the Commercial Interior Remodel Program. 2. Approve initial funding in the amount of $400,000 for the New Residential Construction Incentive Program. 3. Authorize the transfer of $600,000 to General Fund Revenue from the set-aside portion from the sale of shares in the Whitewater Mutual Water Company. 4. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2010-11." STAFF ANALYSIS: Staff is recommending the City Council and/or CRA approve $100,000 supplemental funding of the Facade Improvement Program, ITEM NO. WL_ City Council Staff Report July 28, 2010-- Page 2 Supplemental Funding Staff is recommending the City Council approve $100,000 supplemental funding of the Commercial Interior Remodel Program. Staff is recommending initial funding of $400,000 for the New Residential Construction Incentive Program, as an additional component of the City of Palm Springs Economic Development Plan. On April 7, 2010, the City Council approved the sale of City owned shares in the Whitewater Mutual Water Company Stock. The O'Donnell Golf Club has claimed that the Club has an equitable interest in a portion of the shares donated to the City by Thomas O'Donnell. As such, the City Council directed staff to place the proceeds from the sale of the O'Donnell shares into a separate account until the claim was resolved. The City Manager is recommending $600,000 of the proceeds, a portion of the proceeds as placed in the separate Trust and Agency account, be used to fund the economic recovery programs. FISCAL IMPACT: Total funding for the programs is $600,000. The City Manager is recommending funding the economic development programs with a portion of the set-aside proceeds from the sale of shares in the Whitewater Mutual Water Company, by authorizing the transfer from Trust and Agency to General Fund Revenue. Source of funding proposed is a $600,000 cash transfer of the $1,343,944 proceeds from the sale of the Whitewater Mutual Water stock. ALTERNATIVES: Should the City Council wish to continue to set-aside the proceeds of the sale of the Whitewater Mutual Water shares until the O'Donnell Golf Club claim is fully resolved and not use a portion to fund the economic development programs, staff would recommend the City Council consider funding the economic development programs with Redevelopment Agency funding. An alternative budget resolution using Redevelopment Agency Funds is attached for City Council consideration. Alternative Motion. 1. Call a $600,000 portion of the Francis Stevens Parks Promissory Note issued by the Community Redevelopment Agency to the City of Palm Springs. 2. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2010-11." City Council Staff Report July 28, 2010-- Page 3 Supplemental Funding 3. Adopt Resolution No. _, 'A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AMENDING THE BUDGET FOR FISCAL YEAR 2010-11." Thomas J. Wils , Acting City Manager Attachments: Budget Resolution [use of Whitewater proceeds] Budget Resolutions [use of Redevelopment funding] RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2010-11. WHEREAS, Resolution No. 22714 approving the Budget for the Fiscal Year 2010-2011 was adopted on June 2, 2010; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to the budget for Fiscal Year 2010-11. NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. The Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and Resolution No. 22714, adopting the Budget for Fiscal Year 2010-11 is hereby amended as follows: ADDITION(S): Fund Activity Account Amount 117 2022 Various $600,000 Economic Recovery Economic Recovery Plan Plan SOURCE(S): Fund Activity Account Amount 620 Trust & Whitewater Share $600,000 Agency Sale PURPOSE: To supplement the funding of the Economic Recovery Plan. ADOPTED THIS 28TH DAY OF JULY, 2010. David H. Ready, City Manager Resolution No. Page 2 ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on , by the following vote: AYES: NOES- ABSENT- ABSTAIN: James Thompson, City Clerk City of Palm Springs, California ALTERNATE RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2010-11. WHEREAS, Resolution No. 1403 approving the Budget for the Fiscal Year 2010- 2011 was adopted on June 2, 2010; and WHEREAS the Executive Director has recommended, and the Agency Board desires to approve, certain amendments to the budget for Fiscal Year 2010-11. NOW THEREFORE THE COMMUNITY REDEVELOPMENT AGENCY DETERMINES, RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. The Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and Resolution No. 1403, adopting the Budget for Fiscal Year 2010-11 is hereby amended as follows: ADDITION(S)- Fund Activity Account Amount 851 8201 49625 $600,000 Merged Area #1 Central Business City Loan Principal- Debt Service District Frances Stevens Park SOURCE(S): Fund Activity Account Amount 851 29301 $600,000 Merged Area #1 Fund Balance Debit Service PURPOSE: To supplement the funding of the Economic Recovery Plan. ADOPTED THIS 28TH DAY OF JULY, 2010. David H. Ready, City Manager Resolution No. Page 2 ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on , by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California ALTERNATE RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2010-11. WHEREAS, Resolution No. 22714 approving the Budget for the Fiscal Year 2010-2011 was adopted on June 2, 2010; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to the budget for Fiscal Year 2010-11. NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. The Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and Resolution No. 22714, adopting the Budget for Fiscal Year 2010-11 is hereby amended as follows: ADDITION(S): Fund Activity Account Amount 117 2022 Various $600,000 Economic Recovery Economic Recovery Plan Plan SOURCE(S): Fund Activity Account Amount 001 General Fund 29322 Transfer Out $600,000 PURPOSE: To supplement the funding of the Economic Recovery Plan. ADOPTED THIS 28TH DAY OF JULY, 2010. David H. Ready, City Manager Resolution No. Page 2 ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on , by the following vote- AYES- NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California