2001 10 02 RDAT a
4,Y11 4 �Qui�rw
Redevelopment Agency Agendas are
available on the City's Web Page
@ www.la-quinta.org
Redevelopment Agency
Agenda
CITY COUNCIL CHAMBER
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, October 2, 2001 - 2:00 P.M.
Beginning Res. No. RA 2001-05
I. CALL TO ORDER
Roll Call:
Board Members: Adolph, Pena, Perkins, Sniff, Chairperson Henderson
II. PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit
your comments to three minutes. Please watch the timing device on the podium.
III. CLOSED SESSION
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, JERRY HERMAN
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
PROPERTY LOCATED AT THE NORTHWEST CORNER OF JEFFERSON STREET AND A
AVENUE 48 REGARDING AN AFFORDABLE HOUSING AGREEMENT. PROPERTY
OWNER/NEGOTIATOR: DC & TC LLC - MICHAEL SHOVLIN.
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, when the Agency is considering
acquisition of property, persons identified as negotiating parties are not invited into the
Closed Session Meeting.
RDA Agenda
October 2, 2001
RECONVENE AT 3:00 PM
IV. PUBLIC COMMENT
At this time members of the public may address the Agency Board on items that appear
within the Consent Calendar or matters that are not listed on the agenda. Please
complete a "request to speak" form and limit your comments to three minutes.
When you are called to speak, please come forward and state your name for the
record. Please watch the timing device on the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form must be filed with the City Clerk prior to the Agency
beginning consideration of that item.
V. CONFIRMATION OF AGENDA
VI. APPROVAL OF MINUTES
1. MINUTES OF SEPTEMBER 13, 2001.
2. MINUTES OF SEPTEMBER 18, 2001.
VII. CONSENT CALENDAR
Note: Consent Calendar items are considered to be routine in nature and will be approved by
one motion.
1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 2, 2001.
Vill. BUSINESS SESSION
1. CONSIDERATION OF INSURANCE REQUIREMENT FOR THE LA QUINTA HISTORICAL
SOCIETY.
A. MINUTE ORDER ACTION
2. CONSIDERATION OF A "RESOLUTION OF INDUCEMENT" TO FACILITATE THE
APPLICATION BY DC & TC LLC FOR 4% LOW AND MODERATE INCOME HOUSING
TAX CREDITS TO DEVELOP AN AFFORDABLE SENIOR CITIZEN RENTAL APARTMENT
PROJECT AT THE NORTHWEST CORNER OF JEFFERSON STREET AND AVENUE 48,
AND PERTAINING TO THE AGENCY'S PROVISION OF ADDITIONAL FINANCIAL
ASSISTANCE TO THE PROJECT.
A. RESOLUTION ACTION
3. CONSIDERATION OF AN APPROVAL TO ALLOW THE DISTRIBUTION OF A REQUEST
FOR PROPOSALS FOR REAL PROPERTY MANAGEMENT SERVICES FOR THE LA
QUINTA HOUSING PROGRAM.
A. MINUTE ORDER ACTION 0009
RDA Agenda -2- October 2, 2001
IX. PRESENTATIONS - None
X. STUDY SESSION - None
XI. DEPARTMENT REPORTS
XI1. CHAIR AND BOARD MEMBERS' ITEMS
X111. PUBLIC HEARINGS - None
XIV. ADJOURNMENT - Adjourn to a Regular Meeting of the Redevelopment Agency to be held on
October 16, 2001, commencing with Closed Session at 2:00 P.M. in the City Council
Chambers, 78-495 Calle Tampico, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, Secretary of the La Quinta Redevelopment Agency, do hereby declare that the
foregoing agenda for the La Quinta Redevelopment Agency meeting of October 2, 2001, was posted
on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the
La Quinta Chamber of Commerce and at Stater Bros., 78-630 Highway 111, on Friday, September 28,
2001.
DATED: September 28, 2001
JUNE S. GREEK, CIVIC
Secretary, La Quinta Redevelopment Agency
PUBLIC NOTICE
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 777-7025, 24-hours in advance of the meeting
and accommodations will be made.
003
RDA Agenda -4- October 2, 2001
T a 0
44f 4 4tp a"
COUNCIL/RDA MEETING DATE: OCTOBER 2, 2001
ITEM TITLE:
Demand Register Dated October 2, 2001
RECOMMENDATION: Approve Demand Register Dated October 2, 2001
BACKGROUND:
Prepaid Warrants:
AGENDA CATEGORY:
BUSINESS SESSION
CONSENT CALENDAR l
STUDY SESSION
PUBLIC HEARING
46707 - 467151
525182.82
46716 - 467281
33,410.67
Wire Transfers}
714,944.46
P/R 7525 - 75931
99,952.22
P/R Tax Transfers}
30,028.53 CITY DEMANDS $1,266,307.40
Payable Warrants:
46729 - 468391
5769565.70 RDA DEMANDS 2409777.00
$ 1 ,507,084.40 $1,507,084.40
FISCAL IMPLICATIONS:
Demand of Cash -RDA
$240,777.00
JohniM. Falconer, Finarice Director
004
CITY OF LA QUINTA
BANK TRANSACTIONS 9/13/01 - 9/26/01
9/14/01 WIRE TRANSFER - DEFERRED COMP $5,555.87
9/14/01 WIRE TRANSFER - PERS $9,459.09
9/14/01 WIRE TRANSFER - CREDIT UNION $5,247.00
9/19/01 WIRE TRANSFER - DEBT SVC PAYMENT - CITY HALL $481,682.50
9/20/01 WIRE TRANSFER - RDA ESCROW $25,000.00
9/20/01 WIRE TRANSFER - RDA ESCROW $58,000.00
9/24/01 WIRE TRANSFER - RDA ESCROW $65,000.00
9/26/01 WIRE TRANSFER - RDA ESCROW $65,000.00
TOTAL WIRE TRANSFERS OUT $714,944.46
005
o�_:2
ACCOUNTS PAYABLE - AP5005 CHECK REGISTER 12:01PM 09/26/01
CITY OF LA QUINTA BANK ID: DEF PAGE 1
CHECK
NUMBER
CHECK
DATE
VENDOR
NO. NAME
***NO CHECKS WERE USED FOR PRINT ALIGNMENT.***
PAYMENT
AMOUNT
46729
09/26/01
&01435
M R SOMERS CONSTRUCTION
25.00
46730
09/26/01
&01539
MARILYN AGUIRRE
3.00
46731
09/26/01
&01540
DEBORAH ARONDS
55.00
46732
09/26/01
&01541
MARIANNE DORSEY
15.00
46733
09/26/01
&01542
PAT IMIOLA
34.00
46734
09/26/01
&01543
E M KAY
34.00
46735
09/26/01
&01544
ODETTE OEN
15.00
46736
09/26/01
&01545
ROXIE YESSAYIAN
25.00
46737
09/26/01
&01546
SWH HERMITAGE
3.50
46738
09/26/01
&01547
ANN MARIE MEREDITH
34.00
46739
09/26/01
AAA100
AAA SEASONS
150.00
46740
09/26/01
AME200
AMERIPRIDE UNIFORM SVCS
58.27
46741
09/26/01
AND050
ANDY'S AUTO REPAIR
26.53
46742
09/26/01
ASCO01
A & S COFFEE SERVICE
83.00
46743
09/26/01
ATC010
ATCO INTERNATIONAL
1133.20
46744
09/26/01
AUT030
AUTOMATED TELECOM
182.48
46745
09/26/01
BES100
BEST BUY CO INC
69.86
46746
09/26/01
BLU011
BLUEPRINTER
79.50
46747
09/26/01
BRI100
BRINKS INC
306.00
46748
09/26/01
BUR200
BURTRONICS BUSINESS SYS
497.68
46749
09/26/01
CAD010
CADET UNIFORM SUPPLY
385.08
46750
09/26/01
CAL157
ST OF CAL OES
40.00
46751
09/26/01
CAR300
CARQUEST
53.98
46752
09/26/01
CDW050
CDW GOVERNMENT INC
75.49
46753
09/26/01
CEN010
CENTURY FORMS INC
144.61
46754
09/26/01
CLA035
CLARITAS
376.25
46755
09/26/01
COA062
COACHELLA VALLEY MESSENGR
15.00
46756
09/26/01
COA071
COACHELLA VALLEY PRINTING
8005.98
46757
09/26/01
COA073
COACHELLA VLLY RECREATION
55.86
46758
09/26/01
COR150
CORPORATE EXPRESS
721.29
46759
09/26/01
COS050
COSTCO BUSINESS DELIVERY
848.75
46760
09/26/01
DAN200
DANONE WATERS OF NORTH
418.00
46761
09/26/01
DCT100
DC & TC LLC
400.00
46762
09/26/01
DES010
DESERT BUSINESS MACHINES
126.88
46763
09/26/01
DES018
DESERT ELECTRIC SUPPLY
1089.25
46764
09/26/01
DESO40
DESERT JANITOR SERVICE
4833.50
46765
09/26/01
DES060
DESERT SUN PUBLISHING CO
3301.70
46766
09/26/01
DES065
DESERT TEMPS INC
2476.62
46767
09/26/01
DIE050
DIETERICH POST
206.71
46768
09/26/01
DOU010
DOUBLE PRINTS 1 HR PHOTO
32.26
46769
09/26/01
DOU200
LES DOUGLAS
38.50
46770
09/26/01
DRU100
DRUMMOND AMERICAN CORP
3587.57
46771
09/26/01
ELM100
ELMS EQUIPMENT RENTAL INC
9905.00
46772
09/26/01
END051
ENDICOTT ENTERPRISES
117.15
46773
09/26/01
EXP200
EXPRESS DETAIL
850.00
46774
09/26/01
FER200
FERRIS, JOHNSON & ASSOC
6340.61
46775
09/26/01
GAS010
GASCARD INC
67.96
006
0�'a,
ACCOUNTS PAYABLE - AP5005 CHECK REGISTER 12:01PM 09/26/01
CITY OF LA QUINTA BANK ID: DEF PAGE 2
CHECK
NUMBER
CHECK
DATE
VENDOR
NO. NAME
PAYMENT
AMOUNT
46776
09/26/01
GCS010
GCS WESTERN POWER & EQUIP
107.44
46777
0.9/26/01
GE0010
GEORGE'S GOODYEAR
66.00
46778
09/26/01
GRA010
GRANITE CONSTRUCTION CO
419091.55
46779
09/26/01
GUM050
BRAD GUMMER
77.00
46780
09/26/01
HAR100
JOHN HARDCASTLE
73.44
46781
09/26/01
HEG050
JIM HEGGE
50.00
46782
09/26/01
HIG010
HIGH TECH IRRIGATION INC
386.62
46783
09/26/01
HIL150
HILTON FARNKOPF &
10506.55
46784
09/26/01
HOA010
HUGH HOARD INC
475.34
46785
09/26/01
IND030
INDIO SHOE STORE INC
164.48
46786
09/26/01
INL200
INLAND POWER EQUIPMENT CO
47.06
46787
09/26/01
JIF100
JIFFY LUBE/AFMS
246.47
46788
09/26/01
JPRO10
JP REPROGRAPHICS
262.80
46789
09/26/01
JUD010
JUDICIAL DATA SYSTEMS COR
121.08
46790
09/26/01
KEI010
KEITH COMPANIES
2074.65
46791
09/26/01
KIN100
KINER/GOODSELL ADVERTISNG
3000.00
46792
09/26/01
KOA100
KOALA -TEE PRINTING
387.68
46793
09/26/01
KRI100
BRUCE KRIBBS CONSTRUCTION
3804.00
46794
09/26/01
L00010
LOCK SHOP INC
34.40
46795
09/26/01
LOW100
LOWE'S COMPANIES INC
100.53
46796
09/26/01
LUN050
LUNDEEN PACIFIC CORP
2400.00
46797
09/26/01
MEY100
MEYERS
7423.00
46798
09/26/01
NAW010
RON NAWROCKI
3400.00
46799
09/26/01
NIC101'
NICKERSON & ASSOC INC
10723.00
46800
09/26/01
OFF005
OFFICE DEPOT INC
667.09
46801
09/26/01
OUT100
OUTDOOR SERVICES INC
100.00
46802
09/26/01
PAC045
PACIFIC ENGINEERING SUPLY
164.50
46803
09/26/01
PAR125
RACHEL PARRISH
24.50
46804
09/26/01
PER010
RONALD A PERKINS
26.78
46805
09/26/01
PET100
PET PICKUPS
527.89
46806
09/26/01
PIN050
PINK INC
50.00
46807
09/26/01
PRI020
THE PRINTING PLACE
856.78
46808
09/26/01
PRI070
PRINTING SOLUTIONS
1043.08
46809
09/26/01
RAL050
RALPHS GROCERY CO
13.82
46810
09/26/01
RAN040
RANDAL'S PLUMBING
130.76
46811
09/26/01
RAS020
RASA - ERIC NELSON
2445.00
46812
09/26/01
RES005
RESERVE ACCOUNT
4000.00
46813
09/26/01
RIV080
RIVERSIDE COUNTY HEALTH
2245.00
46814
09/26/01
RJM100
RJM DESIGN GROUP INC
6753.73
46815
09/26/01
SAX100
SAXON ENGINEERING SERVICE
6160.00
46816
09/26/01
SKY200
SKYTEL
16.23
46817
09/26/01
SMA010
SMART & FINAL
95.09
46818
09/26/01
SOCO10
THE SOCO GROUP INC
93.92
46819
09/26/01
SOU007
SOUTHWEST NETWORKS, INC
22101.10
46820
09/26/01
SOU100
SOUTHLAND GEOTECHNICL INC
1410.00
46821
09/26/01
SPRO10
SPRINT
808.01
46822
09/26/01
STA045
STAN'S AUTO TECH
712.78
46823
09/26/01
STA050
STAPLES
162.05
46824
09/26/01
STA150
STATER BROS
11.98
ACCOUNTS
PAYABLE - AP5005
CHECK
REGISTER 12:01PM 09/26/01
CITY OF
LA QUINTA
BANK
ID: DEF
PAGE 3
CHECK
CHECK
VENDOR
PAYMENT
NUMBER
DATE
NO.
NAME
AMOUNT
46825
09/26/01
SUN075
SUNLINE TRANSIT AGENCY
1365.00
46826
09/26/01
SUN080
SUNLINE SERVICES GROUP
504.50
46827
09/26/01
TOP010
TOPS'N BARRICADES INC
2038.49
46828
09/26/01
UCB000
UC BERKELEY EXT
170.00
46829
09/26/01
UNI100
UNITED PARCEL SERVICE
8.00
46830
09/26/01
USH100
USHERWOOD & ASSOC OF CAL
180.74
46831
09/26/01
VAN075
VANDORPE CHOU ASSOC INC
1537.50
46832
09/26/01
VID050
VIDEO DEPOT
18.75
46833
09/26/01
VIP100
V I PEOPLE INC
359.38
46834
09/26/01
VOG050
CHRIS A VOGT
775.48
46835
09/26/01
VON010
VON'S C/O SAFEWAY INC
17.97
46836
09/26/01
WIN010
WINSTON TIRES
1119.71
46837
09/26/01
WORl00
WORLDCOM
914.00
46838
09/26/01
XER010
XEROX CORPORATION
228.98
46839
09/26/01
YOU100
YOUNG ENGINEERING SERVICE
4340.00
CHECK TOTAL
576,565.70
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L� J
ACCOUNTS
PAYABLE - AP5005
CHECK
REGISTER
CITY OF
LA QUINTA
BANK
ID: DEF
CHECK
CHECK
VENDOR
NUMBER
DATE
NO.
NAME
***NO CHECKS
WERE USED
FOR PRINT ALIGNMENT.***
46716
09/24/01
&01538
LIZA BLISS
46717
09/24/01
ACE010
ACE HARDWARE
46718
09/24/01
G00050
GOOD FRIENDS & COMPANY
46719
09/24/01
HOL005
HOLIDAY INN
46720
09/24/01
IMPO10
IMPERIAL IRRIGATION DIST
46721
09/24/01
IMPO11
IMPERIAL IRRIGATION DIST
46722
09/24/01
KIN100
KINER/GOODSELL ADVERTISNG
46723
09/24/01
LAQ040
LA QUINTA CHAMBER COMMERC
46724
09/24/01
NEX010
NEXTEL COMMUNICATIONS
46725
09/24/01
ROS010
ROSENOW SPEVACEK GROUP
46726
09/24/01
SOU002
SOUL OF CHINA
46727
09/24/01
VER200
VERIZON
46728
09/24/01
VER210
VERIZON INTERNET SOLUTION
CHECK TOTAL
3:29PM 09/24/01
PAGE 1
PAYMENT
AMOUNT
120.00
838.24
592.20
500.00
325.71
200.00
9162.13
210.00
2310.64
18614.87
306.53
161.35
69.00
33,410.67
022
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ACCOUNTS
PAYABLE - AP5005
CHECK
REGISTER
CITY OF
LA QUINTA
BANK
ID: DEF
CHECK
CHECK
VENDOR
NUMBER
DATE
NO.
NAME
***NO CHECKS
WERE USED
FOR PRINT ALIGNMENT.***
46707
09/18/01
AZT200
AZTEC RENT -A -CAR
46708
09/18/01
CAL040
CALIFORNIA VISION SERVICE
46709
09/18/01
CAN050
CANADA LIFE ASSURANCE CO
46710
09/18/01
LAQ050
LA QUINTA CITY EMPLOYEES
46711
09/18/01
PRI050
PRINCIPAL MUTUAL
46712
09/18/01
RIV040
RIVERSIDE CNTY DEPT CHILD
46713
09/18/01
SUP100
SUPPORT PAYMENT CLEARING-
46714
09/18/01
UNIO05
UNITED WAY OF THE DESERT
46715
09/18/01
UNU050
UNUM LIFE INS
CHECK TOTAL
1:02PM 09/18/01
PAGE 1
PAYMENT
AMOUNT
154.37
1065.78
555.18
429.00
47135.22
426.50
150.00
179.00
2087.77
52,182.82
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027
1)_a
A/P - AP6002 CHECKS TO BE VOIDED
CITY OF LA QUINTA BANK ID: DEF
CHECK BK INVOICE VENDOR VENDOR INVOICE
NUMBER ID DATE AMT. PAID NUMBER NAME DESCRIPTION
2:50PM 09/18/01
PAGE 1
46569 DEF 08/23/01 2300.00 LAQ300 LA QUINTA MEALS ON WHEELS COMMUNITY SVC GRANT
TOTAL VOIDED 2,300.00
A/P
- AP6002
CHECKS TO BE
VOIDED
CITY
OF LA QUINTA
BANK ID:
DEF
09:10AM 09/25/01
PAGE 1
CHECK BK INVOICE VENDOR VENDOR
NUMBER ID DATE AMT. PAID NUMBER NAME
INVOICE
DESCRIPTION
45608 DEF 06/07/01 25.00 &01435 M R SOMERS CONSTRUCTION REFUND BUSINESS LIC OVERPAYM'
TOTAL VOIDED 25.00
029
0,46
T a f
4hf 4 ep a"
AGENDA CATEGORY:
BUSINESS SESSION: L
COUNCIL/RDA MEETING DATE: October 2, 2001 CONSENT CALENDAR:
ITEM TITLE:
STUDY SESSION:
Consideration of Insurance Requirement PUBLIC HEARING:
for the La Quinta Historical Society
RECOMMENDATION:
As deemed appropriate by the Redevelopment Agency Board.
FISCAL IMPLICATIONS:
None at this time.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
The La Quinta Redevelopment Agency (Agency) and the La Quinta Historical Society
(Historical Society) entered into an Operating and Use Agreement on March 7, 2000,
as provided as Attachment 1. Contained in the Operating and Use Agreement, under
section 3(e), the Historical Society is to provide general liability insurance and exhibit
insurance to the satisfaction of the Agency. The exhibit insurance is to cover the
property belonging to the Historical Society, which includes the artifacts and
collections.
The Historical Society is requesting the exhibit insurance requirement be deleted from
the Operating and Use Agreement, as provided in Attachment 2. The Society is not
requesting funding from the Agency or the City to cover the cost of the exhibit
insurance.
Section 16 of the Operating and Use Agreement allows for amendments to the
Agreement by the mutual consent of the parties by an instrument in writing signed by
both parties. An addendum to the Agreement is provided as Attachment 3 should it
be deemed appropriate by the Agency Board to delete the exhibit insurance
requirement.
030
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
1. Authorize the addendum to the Operating and Use Agreement between the La
Quinta Redevelopment Agency and the La Quinta Historical Society deleting the
exhibit insurance requirement; or
2. Do not authorize the addendum to the Operating and Use Agreement between
the La Quinta Redevelopment Agency and the La Quinta Historical Society
deleting the exhibit insurance requirement; or
3. Provide staff with alternative direction.
Respectfully 1submitted,
Dodie Horvi
Attachment:
mmunity Services Director
Approved for submission by:
(I /� �e"1111
Thomas P. Genovese, Executive Director
1. Operating and Use Agreement
2. Correspondence from the La Quinta Historical Society
3. Addendum to the Operating and Use Agreement
031
S:\Community Services\CCReports\CC.159.Insurance Requirement Historical Society.wpd 4
ATTACHMENT 1
OPERATING AND USE AGREEMENT
THIS OPERATING AND USE AGREEMENT is made and entered into this
day of February 2000, by and between the La Quinta Redevelopment
Agency, a public entity, hereinafter referred to as the "Agency, and the La Quinta
Historical Society, a nonprofit corporation herein referred to as the "Society."
WHEREAS the Agency is in the process of acquiring certain Premises and
improvements located at 77-885 Avenida Montezuma in the City of La Quinta
("City"), particularly described in Exhibit "A" attached hereto and incorporated
herein by this reference (the "Premises") in Project Area No. 1 for the purposes of
rehabilitating and ultimately expanding the Premises as a public museum pursuant
to the authorization in the Redevelopment Plan for expenditures on cultural
facilities; and
WHEREAS the Agency desires that these properties be maintained as an historical
museum by the Society; and
WHEREAS it is contemplated that the Agency shall continue to own the Premises
during all renovation and expansion construction phases and that the Society shall
operate the facility in cooperation with the Agency pursuant to the terms of this
Agreement; and
WHEREAS the Society has operated the site previously and sponsored related
programs since February 13, 1994;
0 3 A,
1 '-
004
NOW THEREFORE the parties hereto agree as follows:
1. TERM
This Agreement shall be for a term of one (1) year, commencing on
March 15, 2000 and terminating on March 14, 2001.
2. RENEWAL
This Agreement shall be automatically renewed each year unless either
party gives a minimum of thirty (30) days written notice of intent to
terminate.
3. RESPONSIBILITIES OF THE LA QUINTA HISTORICAL SOCIETY
During the term of this Agreement, the Society shall provide the
resources necessary to:
a. Operate the Historical Society Museum free of charge to the
public a minimum of twenty-seven (27) hours per week for
public visits from October through May of each year (hours of
operation: Wednesday — Saturday, 10:00 a.m. — 4:00 p.m.,
Sunday, 1:00 — 4:00 p.m.) and a minimum of 12 hours for
public visits during June and September (hours of operation:
Friday -Sunday, 10:00 a.m. — 2:00 p.m.
b. Provide all necessary indoor staffing and janitorial services;
2
033
�,'UJ
C. Secure and display significant historic collections of
photographs, furniture, books and other materials which
accurately portray the historic development of the City of La
Quinta and the Coachella Valley;
d. Promote the public use of these facilities through local and
appropriate regional media;
e. Provide general liability insurance and exhibit insurance to the
satisfaction of the Agency;
f. Provide educational programs such as speakers and field trips
for students and adults;
g. Pay for all utility costs associated with operation of museum
and grounds (e.g. water, phone, electric, sewer, cable
television, gas).
4. RESPONSIBILITIES OF THE AGENCY
During the term of this Agreement, the Agency, through its
appropriate agencies, shall provide the resources necessary to:
a. Repair interior and exterior damage and/or breakage to said
Premises and structural contents thereof (not to include
damage to exhibit materials);
b. Provide maintenance of Premises including landscaping and
parking lot areas;
3
0.34
��Uo
C. Secure fire and property liability insurance or self-insurance.
The property insurance shall not include coverage for the exhibit
materials.
5. USE OF PREMISES
The Premises shall be used for no other purpose than display of
historic collections, administration of education programs and Society
sponsorship of meetings for fundraising or to conduct official Society
meetings, and to support operation of the museum and its goals
without the written consent of Agency, and Society shall not allow
the facility to be used by any other individual, group or organization
for any purpose without express written consent of Agency. The use
and operation of the Premises by the Society shall be in accordance
with all ordinances, resolutions, rules, regulations and laws of the City
of La Quinta and' any Federal, State or local governmental agency of
competent jurisdiction.
6. ALTERATIONS
Society agrees not to make or allow to be made any change, alteration
or addition to or in any of the Premises or improvements without first
obtaining written consent of Agency. All such alterations shall be
made by Society at its own expense and Agency shall be held
harmless from any costs or liens as a result of such alterations or
improvements.
2
7. CONTRACT ADMINISTRATION
The individual from the Society designated to be the principal and
representative .for performance pursuant to this Agreement is: Its
President or his/her designee.
The officer of the Agency in charge of administering this Agreement
is: City Manager or his designee.
8. TERMINATION
After the initial one (1) year term, this Agreement may be terminated
at any time by either party, with or without cause upon thirty (30)
days written notice.
9. ACCESS
Agents of the Agency or City may enter the Premises at any and all
times for the conduct of municipal business or to inspect the Premises
for compliance with the municipal code and other applicable laws, or
in response to an emergency situation that imperils life, limb or
property.
10. INDEPENDENT CONTRACTOR
Neither the Agency nor any of its employees shall have any control
over the manner, mode or means by which Society, its agents, or
employees, perform the services required herein, except as otherwise
5
036
C. 0 8
13. CONFLICT OF INTEREST
No officer or employee of the Agency shall have any personal interest,
direct or indirect, in the Agreement nor shall such officer or employee
participate in any decision relating to the Agreement which effects his
personal interest or the interest of any corporation, partnership or
association in which he is, directly or indirectly, interested, in violation
of any State statute or regulation. The Society warrants that it has
not paid or given and will not pay or give any third party any money or
other consideration for obtaining this Agreement.
14. COVENANT AGAINST DISCRIMINATION
Society covenants that, by and for itself, its heirs, executors, assigns,
and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of
persons on account of race, color, creed, religion, sex, marital status,
national origin or ancestry in the performance of this Agreement.
Society shall take affirmative action to insure that applicants are
employed and that employees are treated during employment without
regard to their race, color, creed, religion, sex, marital status, national
origin or ancestry.
15. INTEGRATED AGREEMENT
This Agreement contains all of the agreements of the parties and all
previous understandings, negotiations and agreements are integrated
into and superseded by this Agreement.
037
7 k:.. 9
16. AMENDMENT
This Agreement may be amended at any time by the mutual consent
of the parties by an instrument in writing signed by both parties.
17. SEVERABILITY
In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared
invalid or unenforceable by a valid judgment or decree of a court of
competent jurisdiction, such invalidity or unenforceability shall not
effect any of the remaining phrases, sentences, clauses, paragraphs,
or sections of this Agreement which are hereby declared as severable
and shall be interpreted to carry out the intent'of the parties
hereunder.
18. AUTHORITY
The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on
behalf of said parties and that by so executing this Agreement the
parties hereto are formally bound to the provisions of this Agreement.
19. SUCCESSORS AND ASSIGNS
All provisions of this Agreement are binding upon any successors,
assigns and representatives of the parties hereto and inure to the
benefit of any successors and assigns of the parties hereto.
038
8 C.10
set forth. Society shall perform all services required herein as an
independent contractor with only such obligations as are consistent
with that role. Society shall not at any time or in any manner
represent that it or any of its agents or employees are agents or
employees of the Agency.
11. INDEMNIFICATION
The Society shall defend, indemnify and hold harmless the Agency and
the City, its officers, employees, representatives and agents, from and
against any and all attorneys' fees for injury to or death of person(s),
for damage to property (including property owned by the Agency) and
for errors and omissions committed by Society, its officers,
employees, and agents, arising directly out of or related to Society's
performance under this Agreement, except to the extent of such loss
as may be caused by Agency's or the City's own negligence or that of
its officers or employees.
12. CALIFORNIA LAW
This Agreement shall be construed and interpreted both as to validity
and to performance of the parties in accordance with the laws of the
State of California. Legal actions concerning any dispute, claim or
matter arising out of or in relation to this Agreement shall be instituted
in the Superior Court of the County of Riverside, State of California, or
any other appropriate court in such county, and Society covenants
and agrees to submit to the personal jurisdiction of such court in the
event of such action.
039
6 C11
IN WITNESS WHEREOF the parties have executed this Agreement on the day and
year first written above.
ATTEST:
BY:
Agency Secretary
APPROVED AS TO FORM:
LA QUINTA REDEVELOPMENT AGENCY
Executive Director
Dawn C. Honeywell, Agency Counsel/City Attorney
REVIEWED AND APPROVED: By:
President, La Quinta Historical Society
\\LAQUINTA\VOL1 \SHARED\citymgr\BRITT\OPERATING AND USE AGREEMENT.doc
040
9 12
ATTACHMENT 2
Joseph A. Irwin
44-065 Camino La Cresta
La Quinta, CA 92253-3950
760-360-9851
j.a.irwin@worldnet.att.net
September 8, 2001
Dodie Horvitz
Director, Community Service Department
City of La Quinta
78-495 CalleTampico
La Quinta, CA 92253
Dear Dodie:
The La Quinta Historical Society's Executive Committee has asked that I raise the
question of insurance as provided in Section 3e. of the Operating and Use Agreement
between the La Quinta Redevelopment Agency and the Society. Specifically it requires
the Society to provide general liability insurance and exhibit insurance to the satisfaction
of the Agency.
I spent many hours discussing this agreement and related real estate transfer with
Mark Weiss and Dawn Honeywell during 1999, which culminated in the agreement's
approval by Council and execution in February, 2000. The parties intended to transfer all
rights to the real estate but that title to Museum artifacts would remain with the Society.
The City asked that we obtain exhibit insurance for the value of our artifacts which we
promised to do without fully realizing all of the costs and volunteer -hours that we were
required to fulfill our promise. .
It took a little time to identify a suitable insurance carrier for this unusual type of
cover and then learned that an appraisal of the artifacts was required before a policy
could be issued. It took additional time for us to. locate an appraisal firm that was
competent and experienced in appraising museum artifacts such as ours. The Society
recently obtained a 41 page formal appraisal, a copy of which is enclosed, at a cost of
$4,000 and about 150 volunteer hours expended to assist in preparing the inventory.
The appraiser determined that the artifacts examined had a replacement cost of
$80,428. I have since obtained a quote from Monarch E&S Insurance Services for that
value at an annual premium of $1,798.75. That policy has not been bound.
041
C', I j
I recently asked Barbara how she would replace the collection if the artifacts were
lost in a fire or other catastrophe. She said she and other Board members knew of no
other similar collection of substance that she could turn to. The articles are unique to La
Quinta and could not be purchased from art dealers or other vendors. Since she would be
unable to replace the artifacts at any cost, the insurance money would be deposited in the
bank and used for other, as yet undetermined, purposes.
Our inability to identify any potential method of replacing these artifacts has led
us to question the very concept of insurance in this case. If, for example, we lost a
collection of valuable paintings by Monet we could use the insurance proceeds to
purchase other works of art by Monet or comparable artists. Obviously these artifacts of
La Quinta and its environs cannot be found at the Home Depot or from any other source
that we know of. Thus our insurance policy becomes purely a financial instrument. We
don't know what the Board would decide to do with the proceeds in case of a loss but we
do know they could not use those funds to purchase replacement artifacts.
With these thoughts in mind we have begun to question the wisdom of obtaining
exhibit insurance as a practical matter and would appreciate your thoughts as to possible
alternatives. I suspect that staff might begin to develop similar questions if the artifacts
were owned by the City. The artifacts just cannot be replaced.
The Society is prepared to waive any liability from the City with respect to the
loss of museum exhibits, except for loss due to negligence or otherwise caused by the
City. Is it not time reexamine the operating agreement? We would certainly appreciate
any comments and suggestions that you might offer.
During earlier contract negotiations, Mark and Dawn asked that our General
Liability insurance policy be increased from one to two million dollars which we bound
on January 10, 2000. Mark indicated that you would like some documentation to that
effect and I have obtained the enclosed Certificate of Liability Insurance from our broker.
If you have any further questions, please call.
Enc. Hemmerdinger Fine Art Appraise
Certificate of Liability Insurance
042-
HEMMERDINGER FINE ART AND APPRAISAL
www.artandappraisal.com
(760) 340-5460
21 April 2001 A-95-01
Barbara J. Irwin, on behalf of:
La Quinta Historical Society
44065 Camino La Cresta
La Quinta, CA 92253-3950
(760) 360-9851/ Fax (760) 772-1194 / email: BARBIEILQ@aol.com
Re: Appraisal of La Quinta Historical Society collections.
SCHEDULE OF VALUABLE POSSESSIONS:
1 Room 1 (Geologic and Ethnographic} $ 9,780..00
2 Room 2 (Agriculture Industry and Film) $10,623.00
3 Room 3 (Hotel and Modern Era) $13,840.00
4 Main Entry (Art and Ethnographic) $14,150.00
5 Office (Art and Photographic Archives) $14,725.00
6 Storage Unit $17,310.00
TOTAL VALUE THIS COLLECTION: $80,428.00
William Hemmerdinger, Ph. D
Catherine Hemmerdinger, M. A.
43-409A Martini Court
Palm Desert, California 92260
043
V _
C� OF
�ti
Addendum to the Operating and Use Agreement
This is an addendum to the Operating and Use Agreement is made and entered into this 2nd day of
October, 2001 by and between the La Quinta Redevelopment Agency, a public entity, hereinafter
referred to as the "Agency", and the La Quinta Historical Society, a nonprofit corporation herein
referred to as the "Society".
The Agency and the Society entered into an Operating and Use Agreement dated March 7, 2000 in
which the Society agreed to certain conditions. Section 3(e) of the Operating and Use Agreement
states that the Society will "provide general liability insurance and exhibit insurance to the
satisfaction of the Agency."
The Society has requested that the condition requiring exhibit insurance be deleted from the
Operating and Use Agreement, as provided in Exhibit A.
As specified in Section 16 of the Operating and Use Agreement "This Agreement may be amended
at any time by the mutual consent of the parties by an instrument in writing signed by both parties."
The Agency agreed to delete the condition of exhibit insurance from Section 3(e) of the Operating
and Use Agreement at their regularly scheduled meeting of October 2, 2001.
In witness whereof the parties have agreed to this addendum to the Agreement dated March 7, 2000,
and have executed this Addendum on the day and year first written above.
ATTEST:
LN
JUKE S. GREEK
Agency Secretary
APPROVED AS TO FORM:
M. KATHERINE JENSON,
Agency Counsel/City Attorney
LA QUINTA REDEVELOPMENT AGENCY
THOMAS P. GENOVESE
Executive Director
REVIEWED AND APPROVED: BY:
President, La Quinta Historical Society
044
C� 1 d
Exhibit A
Joseph A. Irwin
44-065 Camino La Cresta
La Quinta, CA 92253-3950
760-360-9851
j.a.irwin@worldnet.att.net
September 8, 2001
Dodie Horvitz
Director, Community Service Department
City of La Quinta
78-495 CalleTampico
La Quinta, CA 92253
Dear Dodie:
The La Quinta Historical Society's Executive Committee has asked that I raise the
question of insurance as provided in Section 3e. of the Operating and Use Agreement
between the La Quinta Redevelopment Agency and the Society. Specifically it requires
the Society to provide general liability insurance and exhibit insurance to the satisfaction
of the Agency.
I spent many hours discussing this agreement and related real estate transfer with
Mark Weiss and Dawn Honeywell during 1999, which culminated in the agreement's
approval by Council and execution in February, 2000. The parties intended to transfer all
rights to the real estate but that title to Museum artifacts would remain with the Society.
The City asked that we obtain exhibit insurance for the value of our artifacts which we
promised to do without fully realizing all of the costs and volunteer -hours that we were
required to fulfill our promise. .
It took a little time to identify a suitable insurance carrier for this unusual type of
cover and then learned that an appraisal of the artifacts was required before a policy
could be issued. It took additional time for us to locate an appraisal firm that was
competent and experienced in appraising museum artifacts such as ours. The Society
recently obtained a 41 page formal appraisal, a copy of which is enclosed, at a cost of
$4,000 and about 150 volunteer hours expended to assist in preparing the inventory.
The appraiser determined that the artifacts examined had a replacement cost of
$80,428. I have since obtained a quote from Monarch E&S Insurance Services for that
value at an annual premium of $1,798.75. That policy has not been bound.
045
N'
C! 1
I recently asked Barbara how she would replace the collection if the artifacts were
lost in a fire or other catastrophe. She said she and other Board members knew of no
other similar collection of substance that she could turn to. The articles are unique to La
Quinta and could not be purchased from art dealers or other vendors. Since she would be
unable to replace the artifacts at any cost, the insurance money would be deposited in the
bank and used for other, as yet undetermined, purposes.
Our inability to identify any potential method of replacing these artifacts has led
us to question the very concept of insurance in this case. If, for example, we lost a
collection of valuable paintings by Monet we could use the insurance proceeds to
purchase other works of art by Monet or comparable artists. Obviously these artifacts of
La Quinta and its environs cannot be found at the Home Depot or from any other source
that we know of. Thus our insurance policy becomes purely a financial instrument. We
don't know what the Board would decide to do with the proceeds in case of a loss but we
do know they could not use those funds to purchase replacement artifacts.
With these thoughts in mind we have begun to question the wisdom of obtaining
exhibit insurance as a practical matter and would appreciate your thoughts as to possible
alternatives. I suspect that staff might begin to develop similar questions if the artifacts
were owned by the City. The artifacts just cannot be replaced.
The Society is prepared to waive any liability from the City with respect to the
loss of museum exhibits, except for loss due to negligence or otherwise caused by the
City. Is it not time reexamine the operating agreement? We would certainly appreciate
any comments and suggestions that you might offer.
During earlier contract negotiations, Mark and Dawn asked that our General
Liability insurance policy be increased from one to two million dollars which we bound
on January 10, 2000. Mark indicated that you would like some documentation to that
effect and I have obtained the enclosed Certificate of Liability Insurance from our broker.
If you have any further questions, please call.
Enc. Hemmerdinger Fine Art Appraisc-
Certificate of Liability Insurance
Tity/ Sep
4
AGENDA CATEGORY:
BUSINESS SESSION: cg--
COUNCIL/RDA MEETING DATE: October 2, 2001
CONSENT CALENDAR:
Consideration by the La Quinta Redevelopment
Agency of a Resolution of Inducement to Facilitate
the Application by DC & TC, LLC. for 4% Low and
Moderate Income Housing Tax Credits to Develop an
Affordable Senior Citizen Rental Apartment Project
at the Northwest Corner of Jefferson Street and
Avenue 48 and Pertaining to the Agency's Provision
of Additional Financial Assistance to the Project
RECOMMENDATION:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of Inducement of the La Quinta Redevelopment Agency that
facilitates the application by DC & TC, LLC for 4% Low and Moderate Income Housing
Tax Credits; authorizes the Agency Chair and Executive Director to execute the
necessary documents; authorizes the Executive Director to issue up to $8 million in
tax exempt financing to service the construction and permanent financing needs of the
Miraflores Senior Apartments; pay the $300.00 filing fee; and direct staff to amend
and schedule a public hearing on the amended Affordable Housing Agreement by and
between the La Quinta Redevelopment Agency and DC & TC, LLC to facilitate project
financing through the 4% Low and Moderate Income Tax Credits.
FISCAL IMPLICATIONS:
This action would result in the expenditure of $300.00 for the California Debt Limit
Allocation Committee (CDLAC) application fees. This expense will be funded from
funds appropriated for this project. If the Agency Board approves the proposed
Amendment to the Affordable Housing Agreement, the Agency would need to fund
an additional $3.5 million for this project. These funds would be derived from the
Project Area No. 1 and Project Area No. 2 unallocated Housing Fund revenue.
BACKGROUND AND OVERVIEW:
The Agency Board approved an Affordable Housing Agreement on November 21, 2000
that facilitated the construction of 118 senior apartment units in the Miraflores
neighborhood. This Agreement provided that the Agency would fund up to $6.0 million
or 39% of the $15.5 million of development costs to generate 118 senior units
affordable to very low and low income households. These units would remain
affordable to these households for 55 years. 047
G:\WPDOCS\ccfsResolndu.doc
The developer, DC & TC, LLC proposed to fund the remaining $9.5 million of
development costs through a combination of private financing, developer equity, and
9% Low and Moderate Income Tax Credits. The 9% Tax Credits were slated to fund
$6.6 million or 70% of the $9.5 million. DC & TC, LLC applied for the 9% Tax Credits
during the Spring 2000 round. Their application earned 149 out of a possible 153
eligible points. However, they did not receive a tax credit allocation. The only project
to receive tax credits in Riverside County was a 166 unit family housing development
in Palm Desert.
DC & TC, LLC desires to apply for 4% Tax Credits. The Agency Board reviewed their
proposal on September 18, 2001 and directed staff to proceed. The 4% Tax Credit
applications are due on October 4, 2001. In order to apply, the application must
include a Resolution of Inducement that indicates that the Agency approves applying
for the 4% Tax Credits, and that the Agency will facilitate the issuance of up to $8.0
million in tax exempt financing (secured by project rents). Agency facilitation means
that the Agency will allow its tax-exempt status to be used to issue tax exempt
financing for this purpose. If the Agency Board elects to approve the Resolution, then
all documents will be completed on October 3rd, and the application will be submitted
by 4:00 p.m. on October 4th. Further, a TEFRA (Tax Equity and Fiscal Responsibility)
hearing must be held by November 2, 2001. Finally, the Affordable Housing
Agreement Between the Agency and DC & TC, LLC must be amended to include
provisions applicable to the 4% Tax Credits, and to increase Agency assistance from
$6.0 million to $9.0 million or $80,508 per unit. This Agreement Amendment will also
require a public hearing.
The prior round of 4% Tax Credits was under subscribed in that there was 4% Tax
Credits and tax exempt bond allocations left after all projects were funded. Further,
projects that were awarded credits earned 60 to 70 points. Based upon 4% Tax
Credit Guidelines, DC & TC, LLC believes that this proposal will receive 104 points.
If 4% Tax Credits are received, then funding activities would occur in December 2001.
The 4% Tax Credits and Agency assistance will facilitate unit rents that are affordable
to very low and low-income senior households. These units would remain affordable
for a 55-year period.
Approving the Resolution authorizes the issuance of up to $8 million of tax exempt
financing. These funds will be used initially to underwrite 50% of the construction
costs. Approximately $5 million of this amount will then be paid off and $3 million
will remain as permanent financing. In order to start this process, the Resolution must
be submitted as part of an application that requires a $300 application fee. The
recommended action will authorize the issuance of the bonds when needed, authorize
the execution of the appropriate document, and payment of the filing fee.
Approving the use of 4% Tax Credits would facilitate the development of additional
affordable units that will assist the Agency in meeting its housing production
obligations. The Agency currently has 501 of a needed 1,798 units in place. This
proposal would increase the inventory of covenant -restricted units by 24%. 048
G:\WPDOCS\ccfsResolndu.doc
FINDINGS AND ALTERNATIVES:
1. Adopt a Resolution of Inducement of the La Quinta Redevelopment Agency that
facilitates the application by DC & TC, LLC for 4% Low and Moderate Income
Housing Tax Credits; authorizes the Agency Chair and Executive Director to
execute the necessary documents; authorizes the Executive Director to issue
up to $8 million in tax exempt financing to service the construction and
permanent financing needs of the Miraflores Senior Apartments; pay the
$300.00 filing fee; and direct staff to amend and schedule a public hearing on
the amended Affordable Housing Agreement by and between the La Quinta
Redevelopment Agency and DC & TC, LLC to facilitate project financing through
the 4% Low and Moderate Income Tax Credits; or
2. Do not adopt a Resolution of Inducement of the La Quinta Redevelopment
Agency that facilitates the application by DC & TC, LLC for 4% Low and
Moderate Income Housing Tax Credits; authorizes the Agency Chair and
Executive Director to execute the necessary documents; authorizes the
Executive Director to issue up to $8 million in tax exempt financing to service
the construction and permanent financing needs of the Miraflores Senior
Apartments; pay the $300.00 filing fee; and direct staff to amend and schedule
a public hearing on the amended Affordable Housing Agreement by and
between the La Quinta Redevelopment Agency and DC & TC, LLC to facilitate
project financing through the 4% Low and Moderate Income Tax Credits; or
3. Withhold approval and provide staff with alternative direction.
Respectfully submitted,
,ry Heronan
mmunity Development Director
Approved for submission by:
homas P. Genovese, Executive Director
G:\WPDOCS\ccfsResolndu.doc
049
y�
RESOLUTION RDA 2001-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY INDUCING THE DEVELOPER TO UNDERTAKE THE
ACQUISITION AND DEVELOPMENT OF THE PROJECT AS
HEREIN DESCRIBED, AUTHORIZING APPLICATION TO THE
CALIFORNIA DEBT LIMITATION ALLOCATION COMMITTEE
FOR ISSUANCE OF PRIVATE ACTIVITY BONDS FOR THE
PROJECT, DECLARING THE AGENCY'S OFFICIAL INTENT
TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF INDEBTEDNESS, AND CONFIRMING THE
AGENCY'S APPROVAL OF THE PROJECT
WHEREAS, the La Quinta Redevelopment Agency ("Agency"), pursuant
to a resolution adopted therefor, entered into that certain Affordable Housing
Agreement, dated on or about December 20, 2000 ("Agreement"), with DC & TC, LLC
or its successor ("Developer") for the development of an affordable 1 18-unit senior
citizen rental apartment complex to remain affordable for a period of 55 years (the
"Project") located in the City of La Quinta ("City"); and
WHEREAS, concurrent with the Agency's approval of the Agreement and
the Project described in the Agreement, the Agreement and the Project described
therein were also approved by the City Council of the City ("City Council") by adoption
of a resolution approving the Agreement pursuant to the California Community
Redevelopment Law (Health & Safety Code § 33000 et seq.), in particular Health and
Safety Code Section 33433; and
WHEREAS, the purpose of the Agreement and the Project is to address
the need for housing available to senior citizens whose income does not exceed
moderate income as defined in California law; and
WHEREAS, by and through their respective approval of the Agreement,
the Agency and the City Council approved the Project; and
WHEREAS, the Agreement provides for assistance by the Agency to the
Project in the form of a long-term subordinated loan to be repaid from project
revenues; and
Credits; and WHEREAS, Developer intends to apply for 4% Low Income Housing Tax
WHEREAS, Developer has also requested that the Agency consider the
issuance of certain tax-exempt bond financing in a principal amount not less than
$8,000,000 but not more than $9,000,000, pursuant to applicable provisions of
federal law and federal income tax regulations to assist in the development of the
Project (the "Bonds"); and
WHEREAS, it is in the public interest and for the public benefit that the
Agency declare its approval of the use of 4% Tax Credits for the Project and the
Agency's official intent to assist the Project through the issuance of the Bonds.
G:\WPDOCS\CCReso-COA\ResolnducRDA.doc
050
Resolution RDA 2001-
Resolution of Inducement
Adopted: October 2, 2001
as follows: NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
1 . The Agency has previously approved the Project and in conjunction with the
City Council is undertaking the necessary steps under the California Community
Redevelopment Law, in particular Health and Safety Code Section 33433, and
subject to the exercise of the Agency's legislative discretion pursuant to the
California Community Redevelopment Law, to increase the Agency' assistance
by an additional $3,500,000, for a total amount of subordinated long-term debt
assistance to the project of $9,500,000 by amendment of the Affordable
Housing Agreement.
2. The Agency hereby approves of the Developer's application for 4% Tax Credits.
3. The Agency, subject to all applicable requirements and procedures, intends to
issue the Bonds in an amount not less than $8,000,000 but not more than
$9,000,000 for the purpose of paying a portion of the costs of developing the
Project.
4. The Agency declares that a portion of the proceeds of the Bonds, not exceeding
the issuance amount may be used for reimbursement of expenditures for the
acquisition and development of the Project that are paid before the date of initial
execution and delivery of the Bonds, all in accordance with applicable law.
5. The Developer shall be responsible for the payment of all present and future
costs in connection with the issuance of the Bonds, including but not limited to
any fees or expenses incurred by the Agency in anticipation of the issuance of
the Bonds, the cost of issuing any official statement, rating agency costs, bond
counsel fees and expenses, underwriting discount and costs, trustee fees and
expenses, and the cost of printing the Bonds. The payment of principal,
redemption premium, if any, and purchase price and interest on the Bonds shall
be solely the responsibility of the Developer. The Bonds shall not constitute a
debt of the Agency.
6. The Agency shall have the right, in its sole discretion, to select bond counsel,
underwriter, disclosure counsel, and other professional consultants of its
choosing in connection with the issuance of the Bonds. The fees and expense
of bond counsel and any professional employed by the Agency in connection
with the issuance of the Bonds shall be paid solely from the proceeds of the
Bonds or directly by the Developer.
7. The Agency Executive Director is hereby authorized and directed, for and in the
name of and on behalf of the Agency, to (i) make an application to the
California Debt Limitation Allocation Committee for an allocation of private
activity bonds for the financing of the Project, (ii) pay the application fee for the
application submittal to the California Debt Limitation Allocation Committee, (iii)
take such actions as necessary pertaining to the Certification of Posting of
Required Performance Deposit, and (iv) take such other and further actions as
may be required to implement the foregoing described application and the
purposes of this Resolution.
G:\WPDOCS\CCReso-COA\ResolnducRDA.doc 0 1
Resolution RDA 2001-
Resolution of Inducement
Adopted: October 2, 2001
8. The adoption of this Resolution shall not obligate (i) the Agency to provide
financing to the Developer for the acquisition or development of the Project or
to issue the Bonds for purposes of such financing; (ii) the Agency or any
department thereof or the City of La Quinta or any department thereof, to
approve any application or request for, or take any other action in connection
with, any environmental, General Plan, zoning, or any other permit or other
action necessary to effectuate the Project.
9. The Agency hereby approves of and memorializes the public approval process
set forth in the pertinent subsections of 26 U.S.C. § 147.
10. This Resolution is approved expressly for the purpose of satisfying the
requirements of federal law with respect to issuance of the Bonds and for the
purpose of inducing the Developer to undertake the acquisition and development
of the Project.
11. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La
Quinta Redevelopment Agency held on this 2nd day of October, 2001, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chairperson
City of La Quinta, California
ATTEST:
JUNE S. GREEK, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
G:\WPDOCS\CCReso-COA\ResolnducRDA.doc Q 5 Z
T a 0
4tyl 4 4 a"
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: October 2, 2001
CONSENT CALENDAR:
3,1
Consideration of an Approval to Allow the
Distribution of a Request for Proposals for Real
Property Management Services for the La
Quinta Rental Housing Program
RECOMMENDATION:
STUDY SESSION:
PUBLIC HEARING:
Approve the attached Request for Proposals ("RFP") to solicit bids for property
management services for the 45 single family rental properties in the La Quinta Rental
Housing Program; authorize transmittal to qualified property management firms; and
appoint an consultant selection committee to review the responses, interview selected
candidates and provide the Agency with a recommendation.
FISCAL IMPLICATIONS:
None. Property management costs are paid from rental income.
BACKGROUND AND OVERVIEW:
The Agency purchased 50 single family homes located in the Cove in August 1995
from Coachella Valley Land. Since that time, five (5) of the units have been sold as
affordable units to existing tenants and the remaining forty-five (45) units continue to
be rented to very low income, Section 8 certificate recipients as part of the Agency's
affordable housing program. These units will continue to be sold as tenants qualify
to purchase units, or as units become vacant.
The Agency has contracted for property management services since 1995. RSG
managed the properties on an interim basis until the Agency entered into a five (5)
year contract with La Quinta Real Estate in January 1997 which expires on December
31, 2001. The attached RFP (Attachment 1) is to secure bids from qualified property
management firms who can demonstrate their ability to coordinate with the Riverside
County Public Housing Authority ("PHA") and comply with the regulations for Section
8 recipients, and provide project financial management, unit rental, tenant relations,
and property maintenance services.
G:\WPDOCS\ccjh-prop mgmt rfp.doc 053
Staff recommends the Agency Board appoint the consultant selection committee
consisting of the following members:
Mark Weiss, Assistant City Manager
Jerry Herman, Community Development Director
John Falconer, Finance Director
Frank Spevacek, RDA Consultant
Nancy Madrid, RDA Consultant
In addition, the Agency Board may appoint one or two members to participate in, or
observe the selection procedure, or elect to function as the selection committee.
The contract for the firm selected will be brought back to the Agency for final
approval.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve the attached Request for Proposals to solicit bids for property
management services for the 45 single family rental properties in the La Quinta
Rental Housing Program; authorize transmittal to qualified property management
firms; and appoint an consultant selection committee to review the responses,
interview selected candidates and provide the Agency with a recommendation;
or
2. Do not approve the Request for Proposals; or
3. Provide staff with alternative direction.
Respectfully submitted,
YHerm nmunity Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment:
1. Request for Proposals
054
0
G:\WPDOCS\ccjh-prop mgmt rfp.doc
October 5, 2001
(name)
(company)
(address)
(city, state, zip)
ATTACHMENT #1
"Exhibit A"
REQUEST FOR PROPOSALS - PROPERTY MANAGEMENT SERVICES
Dear (name) :
This letter is to solicit a formal proposal from your firm for property management
services for 45 single family rental units in the La Quinta Housing Program which are
owned by the City of La Quinta Redevelopment Agency (the "Agency"). Rosenow
Spevacek Group, Inc. ("RSG") is under contract with the Agency to serve as their
redevelopment and housing consultant. The Agency has requested that we contact a
select group of Coachella Valley firms and solicit proposals for property management
services.
If your firm is interested, please submit two (2) copies of your letter proposal to RSG's
office by 5:00 p.m., October 19, 2001. A review team comprised of Agency and RSG
staffs will review the proposals and make a final selection by November 21, 2001.
The Project
The Agency purchased 50 single family homes located in the Cove Area of the City of
La Quinta in August, 1995 from Coachella Valley Land, the builder. Since that time,
five (5) of the units have been sold as affordable units to existing tenants and the
remaining forty-five (45) units continue to be rented to very low income, Section 8
certificate recipients as part of the Agency's affordable housing program. The Agency
has approved the sale of two (2) units each year to existing tenants who are able to
secureloan approval for a portion of the purchase cost with the Agency contributing a
silent, second trust deed loan to fund the gap. If none of the tenants are interested
or able to purchase, vacant units may be placed for sale to income -eligible purchasers.
The Agency has contracted for property management services since 1995. The
current contract is up for renewal and the Agency is soliciting bids from full -service
property management companies with proven experience in the rental market.
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REQUEST FOR PROPOSALS — PROPERTY MANAGEMENT SERVICES
October 5, 2001
Page 2
Property management activities will include coordinating with the Riverside County
Public Housing Authority ("PHA") and complying with their regulations for Section 8
recipients, project financial management, securing new tenants, tenant relations, and
property maintenance.
Required Tasks
As part of the Agency's housing team, the selected property management firm would
handle all activities necessary to conduct the following activities:
1. Project administration
• Financial record -keeping and reporting
• Rent collection
• Vendor and subcontractor contracts and invoice payment
• Preparation and issuance of year end 1099's for vendor and subcontractor
payments
• Monthly project status reports
2. Coordinate and comply with PHA regulations
• Obtaining new or replacement Section 8 tenants
• Coordinating new tenant leases with the PHA
• Reconciling monthly Housing Assistance Payments
• Completing repair of deficiencies resulting from PHA periodic property
inspections
3. Tenant matters
• New tenant screening, credit check, employment verification, personal
references, etc.
• Monthly tenant rent collection, including late fees, if applicable
• Pre move -in and move -out property inspections
• Eviction process, if required
4. Unit maintenance
• Receiving and processing tenant routine repair requests and emergency
repair requests on a 24 hour basis, 7 days per week. If this task is
subcontracted, the cost for administration of maintenance requests will be
paid by the property manager
• Overseeing work provided by maintenance staff or subcontractor
• Compliance with PHA periodic inspections
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Laquinta\rental housing\01-prop mgmt rfp
REQUEST FOR PROPOSALS — PROPERTY MANAGEMENT SERVICES
October 5, 2001
Page 3
Submission Requirements
The letter proposals should be sufficient in detail to allow a thorough comparative
analysis. We request that the proposal for services contain the following:
1. A description of the tasks to be undertaken and the method and timeline for
their completion.
2. A description of your firm, organizational structure, location of principal and any
satellite offices, number of professional personnel, and names and experience of
all staff members who will work on the project, including possible
subcontractors or jointly participating firms involved in the execution of the
contract pursuant to the RFP.
3. Identification, role and experience of the project manager and key individuals on
the project team who will have direct and continued responsibility for the
project. Please identify the office services for this project will be provided from.
4. A description of your approach to maintenance of the properties.
5. References, applicable licensing and insurance coverage.
6. Your fee proposal should provide a fixed monthly fee for the services to be
rendered for each property. For any charges that are not a part of your base
monthly fee, please identify the task, provide a schedule of hourly rates by
personnel and identify any reimbursable costs that are not included in your
monthly fee. Please delineate those costs which would be part of the fixed fee
and those costs, such as mileage, phone calls, postage, etc., that may not be
included as part of the fixed fee.
Your proposal should include complete details on your firm's insurance coverage.
Errors and omissions (professional liability) coverage is required by the Agency.
We look forward to receiving your proposal for property management services. If you
should have any questions regarding this project, please feel free to contact either me
at (714) 541-4585 extension 228 or Nancy Madrid at extension 231.
Very truly yours,
ROSENOW SPEVACEK GROUP, INC.
Frank J. Spevacek
Principal
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Laquinta\rental housing\01-prop mgmt rfp
REQUEST FOR PROPOSALS - PROPERTY MANAGEMENT SERVICES
October 5, 2001
Page 4
POTENTIAL PROPERTY MANAGEMENT BIDDER'S LIST
Bruce Cathcart
Rupert Yessayian
La Quinta Palms Realty
La Quinta Real Estate
51-001 Eisenhower Drive
78-023 Calle Estado
La Quinta, CA 92253
La Quinta, CA 92253
(760) 564-4104
(760) 564-4218
Desert First Real Estate
M&H Property Management
78-435 Highway 1 1 1, Suite A
78-401 Highway 1 1 1, Suite 1
La Quinta, CA 92253-2081
La Quinta, CA 92253-2081
(760) 564-1123
(760) 564-1123
RKR Properties
Rutherford Investments
46-745 Monroe Street
74-040 EL Paseo, Suite E
Indio, CA 92201-5532
Palm Desert, CA 92260
(760) 863-4373
(760) 779-1771
Preferred Rental Property Management
J&W Management
74-050 Alessandro Drive, Suite B
73-320 El Paseo, Suite 4
Palm Desert, CA 92260
Palm Desert, CA 92260
(760) 773-9988
(760) 568.0349
Q.58
0017
Laquinta\rental housing\01-prop mgmt rfp