1984 05 15 RDA^" AGENDA
IA QUINTA REDEVEI**ENT A*NCy
A regular meeting to be held
at City Hall, 78-105 Calle Estado,
La Quinta, California.
May 15, 1984 7:30 p.m.
1. Call * ORDER
2. RDIi CAli
3. HEARINGS
4. CONS* *
A. Approval of the Minutes of the adjourned reglilar ireeting held May 1, 1984.
5. BLJSINESS SESSI*
A. Report fr*n the Executive Director regarding retention of bond consultant.
1. Motion for adoption.
B. Report fr*n the Executive Director regarding retention of bond counsel.
1. Motion for adoption.
C. Report f* the Executive Director regarding advance of funds f* the City
of La Qilinta.
1. Resolution for adoption.
D. Other
6. ArUOUFN*
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Katz Hollis fr;*aAtzssHoocllasteCso,l*.
*inancial
Consultants
The Cv;an
E*u ding
617 South Olive
Suhe 710
May 10, 1984 Os Angeles, CA
90014
213) 629-3065
Mr. Frank Usher
City Manager
La Quinta Redevelopment Agency Sa* La*e City, LT
Post Office Box 1504 801) 485*5151
La Quinta, California 92253 San Francisco, CA
415) 788-0360
Dear Mr. Usher:
Pursuant to your request, we are pleased to submit the enclosed
contract for the provision of financial consulting services to the
Redevelopment Agency of the City of La Quinta. In recognition of
the Agency's intent to issue tax increment bonds in the near fu-
ture, we have included a scope of services which specifically des-
cribes the activities of our firm with regard to such an issuance.
The contract also allows, howev*er, for the provision of general
consulting services upon your authorization.
Because the specifics of the bond issuance with regard to timing,
size and structure are as yet unresolved, we have provided for
hourly rate compensation in the contract. If you desire, a provi-
sion could be added to the Compensation section specifying a not-
to-exceed amount for the provision of services.
Please call if you have any questions.
sincerely,
KATZ, HOLLIS, COREN **OCIATES, INC.
LJA/mm
Enclosure
5.A
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PRm R* * STRADLI*G, Y0CCA. CARLSON & RAUTH
* E. Yo* A PROrESSIONAL CORPORATION
* WIILlA).*BA*I ATTORNEYS AT LAW
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BBO NEWPORT CENTE* DRIVE. SUITE BOO
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* SHEPARD *KwPORT BEACH. CAL!FO*NIA Q2660-5401
* D. 1*LDO* TELEPhONE *I4 540-7035
B.ucu C. * 540-7332
Douo* E flz0*M TELECOPIER 714
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P501 A G.ov*w* May 9, 1984
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MAXCY LUrES WHITES SAD
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Honorable Members
City of La Quinta Redevelopment Agency
78-105 Calle Estado
La Quinta, California 92253
Gentlemen:
We have been informed by Mr. Frank Usher that you may
desire to employ the firm of stradling, Yocca, Carlson & Rauth
to represent the Redevelopment Agency in connection with the
authorization, issuance and sale of approximately $16,000,000
in tax allocation bonds of the Agency. We will be very pleased
to undertake these legal services.
The legal services to be rendered by this firm in
connection with a bond issue will include general advice to and
consultation with you and your staff, and your financing
consultant; drafting all ordinances, resolutions, notices, and
other documents required for the authorization, issuance and
sale of the bonds; examination of the transcript of the
proceedings; and the issuance of our legal approving opinion to
the purchasers of the bonds. The attorney who will be
primarily responsible for these services will be Fritz
Stradling.
At the present time there is uncertainty as to whether tax
increment is subject to the appropriation limitation provisions
in Article XIIIB of the California Constitution. It was the
practice to validate in a court proceeding each redevelopment
issue prior to the delivery of the bonds. Although this firm
was willing to issue its favorable approving opinion on a
redevelopment issue without a validating suit, we now believe
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Honorable Members
City of La Ouinta
Redevelopment Agency
May 91 1984
Page 2
that it would be prudent for the Agency to validate this issue
because there is presently an advisary lawsuit in the court
regarding this issue in connection with a bond issue of the
Santa Ana Redevelopment Agency, and a lower court decision was
favorable, however, the case is on appeal. We propose to
conduct this validating lawsuit as part of our bond counsel
fee; provided, however, if the lawsuit is contested and there
is an appeal to a higher court, we would anticipate being
compensated for that additional work based upon the hourly
rates of the attorneys in the firm doing the work.
For said legal services, including the validating lawsuit,
our fee will be based on the amount of the issue of bonds
authorized and sold. Our present fee schedule for this work is
as follows:
Total Amount of
B6nds Authorized Fee
In excess of $10,000,000 $22,500 plus $1.00 per $1,000
of bonds in excess of $l0,000,000*
In addition to the above fees, we will be reimbursed for
out-of-pocket expenses incurred in connection with printing,
reproduction of documents, word processing, long distance
telephone calls, telegrams, outside messenger service, travel
outside of Southern California; and similar items. The scope
of the services herein is to act only as bond counsel and does
not include services in connection with any litigation, other
than the validating lawsuit, or other services not stated
above. If the Agency requests us to do additional work, we
will be paid a fee based upon the hourly rates of the attorneys
in the firm undertaking the work.
The bond counsel fee will be paid following the sale of the
bonds. In the event the bonds are not issued, we will be paid
a reasonable fee, to be mutually agreed upon, based upon the
hourly rates of the attorneys in the firm undertaking the work
prior to abandonment.
If this arrangement is satisfactory to you, please author-
ize the employment according to the terms of this letter and
return to us a copy of this letter executed by an LI
officer of the Agency. authorized* \; * $..(
* The maximum fee shall not exceed $30,000.00. In the eve;t!*t
validation action is not required the fee will be reduced by
$2,000.00.
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Honorable Members
City of La Quinta
Redevelopment Agency
May 9, 1984
Page 3
We are looking forward to doing this work for you and we
will use our best efforts to obtain results beneficial to the
Agency.
Respectfully submitted,
ST *gCARLSON & RAUTH
FRS/tlk
Enclosure
TERMS OF EMPLOYMENT APPROVED THIS
DAY OF 1984
Authorized Officer of the City of
La Quinta Redevelopment Agency
8174P/2338/OO
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RESOLUTION NO. RA-84-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING AN AGREEMENT RELATIVE TO AN ADDITIONAL
ADVANCE OF FUNDS FROM THE CITY OF LA QUINTA TO THE
LA QUINTA REDEVELOPMENT AGENCY.
BE IT RESOLVED by the La Quinta Redevelopment Agency, to
approve an agreement between the City of La Quinta and the
La Quinta Redevelopment Agency relative to an additional advance
of funds in the amount of Thirty-Four Thousand Dollars $34,000.00),
totaling $59,000.00, from the City of La Quinta to the La Quinta
Redevelopment Agency.
APPROVED and ADOPTED this day of 1984.
CHAIRMAN
ATTEST:
SECRETARY
5. C
I*
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MEMORANDUM
CITV OF LA QUENTA *
To: Honorable Mayor and Members of Council
From: Frank M. Usher, City Manager
Date: May 14, 1984
Subject: Advance of funds to the La Quinta Redevelopment Agency
I am recommending that the City of La Quinta advance an
additional $35,000 to the La Quinta Redevelopment Agency for legal
services relative to adoption of the La Quinta Redevelopment Plan
and for financial consulting services relative to flood control
bonds. $15,000 of this amount is for legal services incurred
with our Special Counsel relative to Plan adoption. We have
received a bill for the entire year of service totaling $14,060.57.
I have reviewed the bill with Mr. Stradling, and find it to conform
with the proposal for service approved by the Agency. $20,000 of
the advance will be available to cover financial consulting costs
relative to the preparation and issuance of flood control bonds.
Funds for bond counsel and bond house services will not have to
be advanced, as fees for these services are paid from the proceeds
of the bonds. Also, all funds previously advanced to the Agency
shall be repaid from the proceeds of bonds.
The Coachella valley water District has approved a contract
with Bechtel Engineering Company for the engineering of the flood
control improvements. The cost of engineering is expected to
be $450,000. The cost for this will be handled as a loan to the
Agency, to be repaid with interest from bond proceeds. The whole
amount will be advanced to the Agency by the District. An agreement
with the District is in preparation. Half of this amount, $225,000,
will be loaned to the District by Landmark Land Company.
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It is expected that engineering will be cpmpleted by' December*15,
1984, and that bonds will be sold by February 15, 1985. Bids will
have been received by that time and work should begin by February 15,
1985.
Approval of the accompanying agreement advancing $35,000 from
the Cityto the Agency is respectfully recommended.
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