Loading...
2002 07 02 RDAT4t!t 4 4 Q" 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, July 2, 2002 - 2:00 P.M. Beginning Res. No. RA 2002-14 I. CALL TO ORDER Roll Call: Board Members: Adolph, Perna, 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 CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT 78-950 HIGHWAY 111 (APN 643-080-004), WAL-MART STORE. PROPERTY OWNER/NEGOTIATOR: STAN ROTHBART 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED ON THE NORTH SIDE OF CALLE TAMPICO, WEST OF DESERT CLUB DRIVE, EMBASSY SUITES (TENTATIVE PARCEL MAP 29909, PARCEL 8). PROPERTY OWNER/NEGOTIATOR: DANNY BROWN, BISON HOTEL GROUP. 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. on 1 RDA Agenda July 2, 2002 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 W. VI. APPROVAL OF MINUTES 1. MINUTES OF THE REGULAR MEETING OF JUNE 18, 2002. 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 JULY 2, 2002. 2. APPROVAL OF AN AMENDED CONTRACT FOR LEGAL SERVICES WITH RUTAN AND TUCKER, LLP. Vill. BUSINESS SESSION 1. CONSIDERATION AND AUTHORIZATION TO PREPARE A REQUEST FOR PROPOSALS (RFP) FOR LAND USE PLANNING SERVICES FOR THE RANCH PROPERTY. A. MINUTE ORDER ACTION 2. CONSIDERATION OF REVISIONS TO THE LA QUINTA HOUSING PROGRAM FOR HOME PURCHASE SECOND TRUST DEED LOANS. A. MINUTE ORDER ACTION IX. STUDY SESSION - None �00 RDA Agenda -2- July 2, 2002 X. DEPARTMENT REPORTS XI. CHAIR AND BOARD MEMBERS' ITEMS XII. PUBLIC HEARINGS - None XII. ADJOURNMENT - Adjourn to a regularly scheduled Meeting of the Redevelopment Agency to be held on July 16, 2002, commencing with closed session at 2:00 p.m. and open session at 3:00 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 Tuesday, July 2, 2002, was posted on the outside entry to the Council Chambers, 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, June 28, 2002. DATED: June 28, 2002 JU GREEK, CIVIC Agency Secretary, City of La Quinta, California PUBLIC NOTICES The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777-7025, 24-hours in advance of the meeting and accommodations will be made RDA Agenda -3- July 2, 2002 T4ht 4 4Qumaw AGENDA CATEGORY: BUSINESS SESSION COUNCIL/RDA MEETING DATE: JULY 2, 2002 CONSENT CALENDAR ITEM TITLE: Demand Register Dated July 2, 2002 RECOMMENDATION: It is recommended the Redevelopment Agency Board: STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated July 2, 2002 of which $149,454.00 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 4 c&t,/ 4 s(P Q" COUNCIL/RDA MEETING DATE: July 2, 2001 Approval of an Amended Contract for Legal Services with Rutan & Tucker, LLP RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the amended contract for legal services with Rutan & Tucker, LLP. FISCAL IMPLICATIONS: C Adequate funds have been budgeted in account 405-902-601-000, Legal Counsel - Project Area No. 1, and in 406-905-601-000, Legal Counsel -Project Area No. 2 for fiscal year 2002-2003. The contract amendments do not increase the existing fee schedules of Rutan & Tucker. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On June 18, 2002, the Redevelopment Agency completed its annual evaluation of the City Attorney. Agency Counsel has requested certain limited modifications to Rutan & Tucker's contract for services. The amendments reflect the current practice with regard to on -site office hours. In addition, a second Assistant Agency Counsel would be added. Specifically, the changes are: 1. Clarification that the City Hall office hours during weeks of the Planning Commission meetings will be from 4:00 p.m. on the day of the meeting until the end of the meeting, and that nine and one-half hours of additional attorney services will be included in the retainer account in lieu of the on -site hours on the day of the Commission meeting and the following day. 2. The addition of Marc Luesebrink as an Assistant Agency Counsel. M The redlined pages from the amended Agreement are included as Attachment 1. Attachment 2 is Marc Luesebrink's resume, and Attachment 3 is the proposed Amended Contract for Legal Services. FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency Board include: 1. Approve the amended contract for legal services with Rutan & Tucker, LLP; or 2. Do not approve the amended contract for legal services with Rutan & Tucker, LLP; or 3. Provide staff with alternative direction. Respectfully submitted, S M. Katheri a Jenson, Agency unsel Approved for submission by: Thomas P. Genovese, Executive Director Redevelopment Agency Attachments: 1. Redline pages from amended agreement 2. Resume for Marc Luesebrink 3. Amended contract for legal services 0002) ATTACHMENT 1 AGREEMENT FOR CONTRACT LEGAL SERVICES THIS AGREEMENT FOR CONTRACT SERVICES ("Agreement"), is made and entered into by and between THE CITY OF LA QUINTA ("City"), a California municipal corporation, the LA QUINTA REDEVELOPMENT AGENCY ("Agency"), a California public entity, and RUTAN & TUCKER, LLP ("R&T") a Limited Liability Partnership, as of July 1, 2000. The parties hereto agree as follows: 1. SERVICES OF CONTRACTOR 1.1 Scone of Services. In compliance with all terms and conditions of this Agreement, R&T shall provide general City attorney and Agency legal counsel services, and all necessary additional legal services, as respectively specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference ("Services" or "work") 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. R&T shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the Services that it is responsible to provide as required by this Agreement. 007 119/015610-0002 004 89614.03 a06/25/02 2. COMPENSATION 2.1 Schedule of Compensation. The "Schedule of Compensation" is attached hereto as Exhibit "B" and incorporated herein by this reference. The rates in the Schedule of Compensation shall become effective on July 1, 2000. 2.2 Method of Payment. R&T shall submit to the City on a monthly basis in the form approved by the City's Finance Director, an invoice for services rendered during the prior month. Such invoice shall (1) describe in detail the services provided, including the amount of time spent on the matter, (2) specify each person who has provided services and the number of hours worked by each such person, and (3) indicate the total charges on the matter to date. The City will pay the invoice within thirty (30) days after the date the invoice is received. 3. PERFORMANCE SCHEDULE 3.1 Term. Unless earlier terminated in accordance with Section 6.2 of this Agreement, this Agreement shall commence on July 1, 2000, and shall continue in full force and effect until completion of the Services. The performance of the City Attorney shall be reviewed by the City Council on or about June 30, 2001, and shall be reviewed annually thereafter. 4. COORDINATION OF SERVICES 4.1 R&T as General Counsel. M. Katherine Jenson is hefeb} was designated, effective June 27, 2000, as the City Attorney and Agency's general counsel, and shall have primary responsibility for coordination of all legal services for the City and the Agency. John Ramirez is -Wga designated, effective W :' 119/015610-0002 89614.03 a06/25/02 -2- 005 June 27, 2000, as the Assistant City Attorney and Assistant Agency Counsel. Marc Luesebrink 4.2 Additional Representatives of R&T. The following additional attorneys of R&T are hereby designated for the Services specified herein: (a) David Cosgrove, as the primary counsel with respect to eminent domain. (b) L. Ski Harrison, as the primary counsel with respect to labor issues. (c) William M. Marticorena, with respect to cable television and bond counsel. (d) Penelope Parmes, as primary counsel with respect to bankruptcy issues. (e) Dan Slater, to assist Ms. Jenson and Mr. Ramirez with regard to redevelopment issues. Substitution of the foregoing attorneys shall be permitted with the consent of the Contract Officer. The foregoing attorneys shall be primarily responsible during the term of this Agreement for devoting sufficient time to personally supervise any other attorneys or paralegals in providing the Services provided by R&T hereunder. 4.3 Contract Officer. The Contract Officer shall be the City Manager of the City or such other person as may be designated by the City Manager. It shall be R&T's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services. r" 119/015610-0002 Q Q 6 89614.03 a06/25/02 -3- EXHIBIT "A" SCOPE OF SERVICES I. SCOPE OF SERVICES. A. General. City and Agency employs R&T and R&T agrees to perform all required legal services as City Attorney -- General Counsel to the City and Agency Counsel to the Redevelopment Agency including, without limitation, the following: 1. Regular office hours and coverage of all City Council, Agency Board and Planning Commission meetings. Attendance at other commission, committee or negotiating meetings upon request. 2. Prepare and/or review all ordinances, resolutions and agreements of the City and the Agency. 3. Render such other legal services and advice as required and may from time to time be requested by the City Council or City Manager on any matter affecting the operation of the City and/or the Agency. 4. All litigation matters concerning the City and/or Agency. B. Retainer Services. R&T agrees that it as part of its retainer, it shall provide, through the services of M. Katherine Jenson or John Ramirez, office hours at City Hall for two days each week, inclusive of coverage of all regular City Council, Agency and Planning Commission meetings (the "Retainer Time"). It is currently anticipated that as a general rule, M. Katherine Jenson will attend Council and Agency meetings, and that Mr. Ramirez and/or Mr. Luesebrink will attend the Planning Commission meetings. II. ADDITIONAL SPECIAL SERVICES. A. Litigation. The City and Agency hereby retain R&T to perform litigation services for City and Agency and the services necessary relating to threatened litigation. B. Special Municipal Services. The City and Agency hereby employ R&T to perform specialized legal services for the areas of labor, cable television, bankruptcy, and general municipal on an as needed basis. 010 007 119/015610-0002 89614.03 a06/25/02 A- 1 EXHIBIT "B" SCHEDULE OF COMPENSATION CITY ATTORNEY AND AGENCY COUNSEL. For services rendered by "4. Katherine Tense .,,.t;, g as City n tte.. ey and Ageney C 1 a Tel, Ramirez,.ti as Assistant City Attemey and Assistant sty,„t Ageney Eeonsel Rutan & Tucker, LLP, the City and Agency hereby agree to pay the following fees: A. Retainer Amount. 1. A flat retainer rate $12,000 per month shall be paid for all-sefviees r-ender-ed by the City Attemey/Ageney Legal Counsel C, l dur-i g th,days dwifig whieh Mis Tease.. er- Td. D. mir-ez is leleated t La Quint., City LTull eaeh week that the yean Initially the shall be Tuesdays fr-e .., 1 n-nn a.m. to 1-10;00 p.m. (theendHf '16— C-2—Reil a Dig ., s*eet te r-evisien at the option of the City. 114--ager and the City At4emey, and shall be r-efeffed te as the n T' n, 1 1 1 tl I' II 1 1t 11 1 I IVA tii I TIM 1 1 1 1 1 1 1• I 1 11 Rill 1 II 1 I. 1 1 I' •1r1' 1 I 11 rin' 1 1 ..I L.1.' 1 _I !.. I I _ME I If It I L 11 I' I 11 __: , *_ :_ 1 I T '1.� I 1• 11•' 1 1• II . J I 1 I e 1 , i 1 11 1 1_ II 1 :11 11: FTi1 441:.1 111l_ 1' 1 11..It 1.1 .. 1 I 1i 1 1 MR! I 1 I 1 1111 1 I' 1t.: I _1 ! I 1 1ling I' 1 IT-14 I I.t. I1 I' 1•'1 119/015610-0002 11614.03 a06/25/02 B-1 Oil 008 ATTACHMENT 2 Marc Luesebrink 355 N. Trimble Court Long Beach, CA 90814 (562.) 856-1450 EDUCATION: UCLA Law School, Los Angeles, CA J.D., May 2001; GPA: 3.5 Editor -in -Chief, Environmental Law Journal Research Assistant, Professor Jody Freeman 2001 Recipient of Hagman Award for Excellence in Land Use Law Yale University, New Haven, CT Masters Degree in Environmental Management, May 1995 Concentration --Natural Resource Policy and Economics Vice -President, Yale Water Resources Association University of California at Berkeley, Berkeley, CA B.S. Conservation and Resource Studies, with honors, May 1992 Kappa Sigma Fraternity, Sports Chair/Philanthropy Chair Study Abroad in Barcelona, Spain 1990-1991 EXPERIENCE: Rutan & Tucker, Costa Mesa, CA Associate, 9/01 to present Perform legal work in the areas of public law, land use law, and water rights law. Jeffer, Mangels, Butler & Marmaro, Los Angeles, CA Summer Associate, 6/99 to 9/99 and 6/00 to 9/00 Performed legal research and writing assignments for attorneys in Land Use, Environment, and Energy Department. California Resources Agency, Sacramento, CA Special Assistant to the Secretary for Resources, 10/95 to 8/98 Assisted Secretary Doug Wheeler to coordinate water and conservation programs under direction of the Resources Agency, including the CALFED Bay -Delta Program, Utility Deregulation Working Group, the Natural Communities Conservation Planning Program, and the Governor's Water Policy Council. Siemon, Larsen & Marsh, Irvine, CA Legal Aid, 6/92 to 8/93 Researched and prepared memoranda concerning environmental regulation and policy. Assisted attorneys with preparation of Habitat Conservation Plans. STA Planning, Inc., San Francisco, CA Research Analyst, 6/89 to 6/90 Prepared sections of Environmental Impact Reports and General Plan Documents. Assisted project managers with research and editing. OTHER: Fluent in Spanish Member, Orange County Water Task Force, 1995-1998 Interests --Basketball, Hiking, Surfing 012 009 ATTACHMENT 3 AMENDED AGREEMENT FOR CONTRACT LEGAL SERVICES THIS AGREEMENT FOR CONTRACT SERVICES ("Agreement"), is made and entered into by and between THE CITY OF LA QUINTA ("City"), a California municipal corporation, the LA QUINTA REDEVELOPMENT AGENCY ("Agency"), a California public entity, and RUTAN & TUCKER, LLP ("R&T") a Limited Liability Partnership, as of July 1, 2000. The parties hereto agree as follows: 1. SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, R&T shall provide general City attorney and Agency legal 'counsel services, and all necessary additional legal services, as respectively specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference ("Services" or "work"). 1.2 Compliance with Law. All Services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. R&T shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the Services that it is responsible to provide as required by this Agreement. 119/015610-0002 89614.03 a06/25/02 2. COMPENSATION 2.1 Schedule of Compensation. The "Schedule of Compensation" is attached hereto as Exhibit "B" and incorporated herein by this reference. The rates in the Schedule of Compensation shall become effective on July 1, 2000. 2.2 Method of Payment. R&T shall submit to the City on a monthly basis in the form approved by the City's Finance Director, an invoice for services rendered during the prior month. Such invoice shall (1) describe in detail the services provided, including the amount of time spent on the matter, (2) specify each person who has provided services and the number of hours worked by each such person, and (3) indicate the total charges on the matter to date. The City will pay the invoice within thirty (30) days after the date the invoice is received. 3. PERFORMANCE SCHEDULE 3.1 Term. Unless earlier terminated in accordance with Section 6.2 of this Agreement, this Agreement shall commence on July 1, 2000, and shall continue in full force and effect until completion of the Services. The performance of the City Attorney shall be reviewed by the City Council on or about June 30, 2001, and shall be reviewed annually thereafter. 4. COORDINATION OF SERVICES 4.1 R&T as General Counsel. M. Katherine Jenson was designated, effective June 27, 2000, as the City Attorney and Agency's general counsel, and shall have primary responsibility for coordination of all legal services for the City and the Agency. John Ramirez was designated, effective June 27, 2000, as 014 119/015610-0002 0 i l 89614.03 a06/25/02 -2- the Assistant City Attorney and Assistant Agency Counsel. Marc Luesebrink is hereby designated, effective June 25, 2002, as an additional Assistant City Attorney and Assistant Agency Counsel. 4.2 Additional Representatives of R&T. The following additional attorneys of R&T are hereby designated for the Services specified herein: (a) David Cosgrove, as the primary counsel with respect to eminent domain. (b) L. Ski Harrison, as the primary counsel with respect to labor issues. (c) William M. Marticorena, with respect to cable television and bond counsel. (d) Penelope Parmes, as primary counsel with respect to bankruptcy issues. (e) Dan Slater, to assist Ms. Jenson and Mr. Ramirez with regard to redevelopment issues. Substitution of the foregoing attorneys shall be permitted with the consent of the Contract Officer. The foregoing attorneys shall be primarily responsible during the term of this Agreement for devoting sufficient time to personally supervise any other attorneys or paralegals in providing the Services provided by R&T hereunder. 4.3 Contract Officer. The Contract Officer shall be the City Manager of the City or such other person as may be designated by the City Manager. It shall be R&T's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services. 015 119/015610-0002 012 89614.03 a06/25/02 -3- 4.4 Prohibition Against Subcontracting or Assignment. R&T shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City and Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntary or by operation of law, without the prior written approval of City and Agency. 4.5 Independent Contractors. Neither the City nor any of its employees shall have any control over the manner, mode or means by which R&T, its agents or employees, perform their respective Services required herein, except as otherwise set forth. R&T shall each perform the Services required herein as separate independent contractors of City and Agency and shall remain at all times as to City wholly an independent contractor with only such obligations as are consistent with that role. 4.6 Insurance. R&T will provide certificates of professional liability insurance for its Services of at least $500,000 per occurrence and one million in the aggregate. 4.7 City and Agency Cooperation. The City and Agency shall provide R&T with any data or information pertinent to Services to be performed hereunder which are reasonably available to the City and Agency and necessary for the provision of such Services. 5. RECORDS AND REPORTS 5.1 Reports. R&T shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 016 013 119/015610-0002 19614.03 a06/25/02 -4- 5.2 • Records. R&T shall keep such books and records as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6. ENFORCEMENT AND TERMINATION OF AGREEMENT 6.1 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 R&T covenants and agree to submit to the personal jurisdiction of such court in the event of such action. 6.2 Termination. This Section shall govern any termination of this Agreement. All parties reserve the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to the other party. 7. CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 7.1 Non -liability of City Officers and Employees. No officer or employee of the City or Agency shall be personally liable to R&T in the event of any default or breach by the City or Agency or for any amount which may become due to R&T, or for breach of any obligation of the terms of this Agreement. 017 014 119/015610-0002 89614.03 a06/25/02 -5- 7.2 Conflict of Interest. R&T 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. 7.3 Covenant against Discrimination. R&T covenants 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, disability or ancestry in the performance of this Agreement. R&T shall take any necessary 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, physical disability, mental disability, medical condition, age, or ancestry. 8. MISCELLANEOUS PROVISIONS 8.1 Notice. Any notice, demand, request, consent, approval, communication the parties desire or are required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section 8.1. To City or Agency: CITY OF LA QUINTA 78-495 Calle Tampico La Quinta, CA 92253 Attn: Thomas P. Genovese City Manager To R&T: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, CA 92626 Attn: M. Katherine Jenson t 119/015610-0002 _6_ 015 89614.03 a06/25/02 8.2 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. This Agreement specifically supersedes the prior Agreement for Contract Services entered into by the parties on May 2, 1995. 8.3 Amendment. This Agreement may be amended at any time by the consent of the parties by an instrument in writing signed by all parties. 8.4 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. 8.5 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. 119/015610-0002 89614.03 a06/25/02 -%- 019 016 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA Dated: , 2002 By: ATTEST: June Greek, City Clerk John J. Pena, Mayor LA QUINTA REDEVELOPMENT AGENCY Dated: , 2002 By: ATTEST: June Greek, Agency Secretary Terry Henderson, Chair RUTAN & TUCKER, LLP Dated: , 2002 By: M. Katherine Jenson, Partner 020 119/015610-0002 017 89614.03 a06/25/02 -8- EXHIBIT "A" SCOPE OF SERVICES I. SCOPE OF SERVICES. A. General. City and Agency employs R&T and R&T agrees to perform all required legal services as City Attorney -- General Counsel to the City and Agency Counsel to the Redevelopment Agency including, without limitation, the following: 1. Regular office hours and coverage of all City Council, Agency Board and Planning Commission meetings. Attendance at other commission, committee or negotiating meetings upon request. 2. Prepare and/or review all ordinances, resolutions and agreements of the City and the Agency. 3. Render such other legal services and advice as required and may from time to time be requested by the City Council or City Manager on any matter affecting the operation of the City and/or the Agency. 4. All litigation matters concerning the City and/or Agency. B. Retainer Services. R&T agrees that it as part of its retainer, it shall provide, through the services of M. Katherine Jenson or John Ramirez, office hours at City Hall for two days each week, inclusive of coverage of all regular City Council, Agency and Planning Commission meetings (the "Retainer Time"). It is currently anticipated that as a general rule, M. Katherine Jenson will attend Council and Agency meetings, and that Mr. Ramirez and/or Mr. Luesebrink will attend the Planning Commission meetings. II. ADDITIONAL SPECIAL SERVICES. A. Litigation. The City and Agency hereby retain R&T to perform litigation services for City and Agency and the services necessary relating to threatened litigation. B. Special Municipal Services. The City and Agency hereby employ R&T to perform specialized legal services for the areas of labor, cable television, bankruptcy, and general municipal on an as needed basis. 119/015610-0002 89614.03 a06/25/02 A-1 021 of s C. -Bond Counsel. R&T agrees to perform all requested legal services as Bond Counsel to City including without limitation the following: 1. Assessment Districts. In regard to assessment proceedings pursuant to the Municipal Act of 1913 with bonds issued pursuant to the Improvement Bond Act of 1915 or the 1911 Act, City employs R&T to furnish, and R&T agrees to furnish, the following legal services: a. Attend meetings with the City staff and consultants to formulate the financing. b. Examination of the map of the assessment district, the assessment roll and diagram, the bonds, and the giving of instructions and advice in connection with the foregoing. C. Preparation of all resolutions, notices, contracts, bond forms, and other legal papers and document required in the proceedings. d. Attendance at the hearing on the assessment district and at such other City Council's meeting at which any action in the proceedings is to be taken and attendance is requested. e. Examination of the proceedings, step by step, as taken. f. Supervise the closing. g. Issuance of Contractor's legal opinion upon the validity of the proceedings and the bonds issued to represent unpaid assessments. 2. Pre -assessment Proceedings. If pre -assessment proceedings are taken, R&T will prepare all resolutions, notices, and other documents required, attend the pre -assessment hearing and prepare the resolutions, notices and other documents for the election. 3. General Obligation Bonds. In connection with the issuance of general obligation bonds, R&T agrees to draft all resolutions, notices and other documents, attend such meetings of the staff and City Council of the City as may be necessary to complete an election for the authorization of the bonds and the issuance of the bonds if authorized. R&T will work with the City staff and its consultants to determined the best method of marketing the bonds, draft all resolutions, notices and other documents for the sale of the bonds, attend such meetings of the staff and the City Council of the City as may be necessary to complete the sale of the bonds, prepare closing documents, supervise the closing and issue R&T's legal approving opinion on the bonds. 022 0 1- 9 119/015610-0002 89614.03 a06/25/02 A-2 4. Certificates of Participation. The City's joint exercise of powers will be utilized to issue certificates of participation. R&T will attend the meetings of the City Council of the City and the Board of Directors of the Authority as may be necessary in connection with the certificate of participation transaction, prepare documents necessary to lease the land or facility to be improved and the leaseback of the improved facility, the trust agreement, the bond sale documents, the certificates, the closing documents, attend and supervise the closing, and issue a legal approving opinion to the purchaser of the certificates. 5. Mello -Roos County Facilities Act of 1982-Bonds. This part relates to the formation of a Community Facilities District ("District") and the bonds to be issued in connection with that District. Such services shall include but not be limited to meetings with the City staff and its financial consultant, attendance at City Council meetings, the drafting of resolutions, notices and other documents required for the formation of the District, the special tax and bond authorization election, and for the issuance of the bonds, if determined necessary by Bond Counsel, the uncontested validation of the special tax if determined necessary by Bond Counsel, the preparation of the closing documents and the rendering of a legal opinion. 6. Redevelopment Bonds. R&T will prepare all documents for the issuance and sale of the tax increment bonds, including the resolutions for adoption by the City Council, the Agency, and if a financing authority is to be used, the resolutions to be adopted by the Authority, the trust agreement, bond sale documents, and the closing documents. R&T will supervise the closing and issue its legal approving opinion on the proceedings. 023 non 119/015610-0002 89614.03 a06/25/02 A_3 EXHIBIT "B" SCHEDULE OF COMPENSATION I. CITY ATTORNEY AND AGENCY COUNSEL. For services rendered by Rutan & Tucker, LLP, the City and Agency hereby agree to pay the following fees: A. Retainer Amount. A flat retainer rate $12,000 per month shall be paid for: (a) For Council Meeting Weeks: On Council meeting Tuesdays, the hours at City Hall shall be 10:00 a.m. until the end of the meeting, and 8:30 a.m. until noon, and then from 1:00 p.m. to 2:00 p.m. on the following Wednesday. These hours will generally be handled by Ms. Jenson unless she is ill or otherwise unavailable. (b) For Planning Commission Weeks: On the Tuesday of the Commission meeting, the hours at City Hall shall be 4:00 p.m. until the end of the meeting. These hours will be handled by one of the Assistant City Attorneys or by Ms. Jenson. (c) In lieu of the office hours for Planning Commission Weeks, 19 hours of additional attorneys services shall be included in the retainer account per month. These may include additional office hours at City Hall, other meetings on City/Agency business, or attorney hours worked at Rutan & Tucker's offices. (d) With the consent of the City Manager, the City Attorney may occasionally adjust the City Hall hours to accommodate scheduling needs. B. Additional Amounts for General City Attorney Services. 1. All hours for general attorney services (in addition to the Retainer Time) shall be billed at $170 per hour for attorney services, $95 per hour for all paralegals, and $40 per hour for document clerks. II. SPECIAL SERVICES RATES. For special services rendered by R&T, the City and Agency agree to pay the following fees: A. For services rendered in connection with any litigation or threatened litigation matter as described in Section II.A. of Exhibit "A," the following fees shall apply: 119/015610-0002 89614.03 a06/25/02 B-1 024 n�� 1. $190 per hour for all partners. 2. $160 per hour for all associates. 3. $95 per hour for all paralegals and $40 per hour for all document clerks. B. For services rendered in connection with other special legal services, such as labor, telecommunications, redevelopment, hazardous and toxic materials, but not including bond services, the following fees shall apply: 1. $180 per hour for all partners and for Dan Slater. 2. $150 per hour for all associates. 3. $95 per hour for all paralegals. C. Bond Counsel. For services rendered by R&T acting as Bond Counsel to City and Agency, the City and Agency hereby agrees to pay the following customary fees. One percent of the first $1,000,000 of any issuance amount, plus one-half percent of the issuance amount between $1,000,000 and $5,000,000, plus one-fourth of one percent of the issuance between $5,000,000 and $10,000,000, plus one -tenth of one percent of the amount of issuance over $10,000,000. A minimum fee of $25,000 will be charged for all bond issuances. D. Costs. All travel time shall be billed (except for conjunction with Retainer Work or Bond Counsel work) but no travel charges to the desert area (i.e., mileage or hotel) shall be charged. Charges for travel outside the Riverside or Orange County area will be subject to approval by the City Manager. No long distance telephone charges within the Orange and Riverside County areas would be billed. All other out-of-pocket charges (i.e., copying at $.19 per page, Lexis or Westlaw charges, telecopying, messenger charges) shall be charged at standard rates. E. Reimbursement Rates. For all matters for which the City or Agency is entitled to reimbursement for R&T's services from third parties, R&T's rates shall be its standard applicable rates. If the City is unable to obtain reimbursement for any reason, the City or Agency shall be credited with the differential between the above scheduled rates and the standard rates, or shall be entitled to a refund of the differential, at its or their option. 025 119/015610-0002 0,22 1 2 2 19614.03 a06/25/02 B-2 y-/ T4tyl 4 4&Q" AGENDA CATEGORY: BUSINESS SESSION: / COUNCIL/RDA MEETING DATE: July 2, 2002 CONSENT CALENDAR: Consideration and Authorization to Prepare a Request for Proposals (RFP) for Land Use Planning Services for the Ranch Property RECOMMENDATION: STUDY SESSION: PUBLIC HEARING: Authorize staff to prepare an RFP for land use planning services for The Ranch site. FISCAL IMPLICATIONS: None for this action. The Agency has entered into a purchase agreement for acquisition of 525 acres of property at the southwest corner of Avenue 52 and Jefferson Street. The FY 2002-03 Capital Improvement Program includes a project entitled Municipal Golf Course — Phase I, including $2.5 million for contractual services related to administration and engineering. This report is intended to outline parameters for development of preliminary plans and design of The Ranch project site. BACKGROUND AND OVERVIEW: Since 1996, the Agency has been working to implement the City's Economic Development Plan that calls for: • Enhancing General Fund Revenue by attracting retail/hospitality uses; • Increasing recreation opportunities by purchasing properties for golf and other recreation uses; and • Preserving natural resources that make La Quinta a unique place. To that end, the Agency has entered into a Purchase and Sale Agreement to acquire 525 acres of property referred to as "The Ranch." The Ranch acquisition affords the Agency an opportunity to create a public place including golf, trails, open and meeting spaces, retail and hospitality uses. The site 026 can generate badly needed public revenue, and it can be done in a manner consistent with the history and values of La Quinta. The challenge lies in creating a process that ensures enactment of the community vision. To that end, staff is prepared to embark upon a planning process via preparation of an RFP for professional land use planning services. The Agency has previously approved a generic development scenario as detailed in the project's Initial Study and Mitigated Negative Declaration. That scenario includes two 18-hole golf courses with a 25,000 square foot (sf) clubhouse; a 9- hole course; a 250-room hotel with 10,000 sf conference center; 300 timeshare, fractional or condo hotel units; 25,000 ancillary commercial uses; and passive park uses, trails and view corridors. The challenge now is to refine the development scenario into a development program and specific land use plan. The Ranch, due to its premiere location and site characteristics, warrants the attention of premiere planning, architectural and engineering expertise to ensure development in a manner befitting the site, Agency objectives and the City's character. Accordingly, staff has been in contact with numerous developers, consultants, contractors, citizens and other municipalities in recent weeks and months in an effort to identify preferred options for master planning The Ranch. The Planning Process: Inasmuch as the resort component to The Ranch is critical to the success of the Agency's development objectives, it is imperative that a skilled land use planner be consulted very early in the process. Other skills that will be of benefit early in the planning process will include those of a golf architect, engineer, and hotel/resort developer. The City's consultant selection process provides the means by which consultants are selected in La Quinta (Attachment 1). This process includes provisions for a selection committee, review of proposals, negotiation with the top -ranked firm and contract approval by the City Council. An alternative process is outlined for "minor services," defined as having a value of less than $25,000. Staff believes it is advisable to retain a land use planning firm (i.e., with a landscape architectural component) to serve in a lead capacity in this process. This firm would prepare schematic plan layouts for optimum future development of the site. The planning firm would also coordinate and facilitate the process by which the public could review, comment and have meaningful input into the ultimate proposed land uses and design. Staff would suggest that other professionals, including an engineering firm, a golf course architect, hotel developer, perhaps even golf course construction 027 002 contractors/operators be retained on a very limited time and materials basis in the early stages of the planning process to review and comment on draft schematics. These firms may be retained under the "minor services" provisions of the consultant selection process. These firms may ultimately compete for other aspects of the project (i.e., golf course design, construction, operation, etc.,) but the Agency would be free to select the appropriate consultants/contractors/developers as the project comes closer to fruition. With Agency concurrence, staff would prepare an RFP for land use planning services for Agency consideration at its regular meeting of August 6, 2002. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Authorize staff to prepare an RFP for land use planning services on The Ranch site; or 2. Do not authorize staff to prepare an RFP for land use planning services on The Ranch site; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss Assistant Executive Director Approved for submission by: Thomas P. Genovese Executive Director Attachment: 1. Consultant selection process 023 003 RESOLUTION NO. 98-15 ATTACHMENT 1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA REGARDING SOLICITATION AND SELECTION OF FIRMS AND AWARD OF CONTRACTS FOR THE FURNISHING OF SERVICES AND REPEALING RESOLUTION 96-80 WHEREAS, pursuant to Chapter 3.32 of the La Quinta Municipal Code (LQMC), the City Council desires to prescribe specific procedures and rules governing the solicitation and selection of firms and award of contracts for services; NOW, THEREFORE, the City Council of the City of La Quinta, California, does resolve as follows: Section 1: Applicability The procedures and rules herein prescribed shall apply to the solicitation and selection of firms and award of contracts for the furnishing of services pursuant to LQMC Chapter 3.32. Section 2: Contracts for major services Major services are defined as those services having an estimated value of twenty five thousand dollars or greater. The solicitation and selection of firms and award of contracts shall conform with LQMC Section 3.32.020 and the following: A. Contract Services Registry 1. Establishment. The City shall maintain a contract services registry (the "Registry") of firms providing commonly -required services. The Registry shall contain the names, addresses and telephone numbers provided by the firms, the particular categories of services each firm desires to provide and limited documentation as may be provided by each firm in support of qualifications and professional competence to perform the services. 2. Annual Notice. The City Clerk shall annually publish a notice inviting firms to submit or update their qualifications. The notice shall be published at least twice in a newspaper of general circulation. The City may prescribe a standard form with which interested firms must submit their qualifications. Biannually, the City Clerk shall mail notices to firms on the Registry requesting that they verify or update their qualifications materials. Any firm not responding to the notice shall be removed from -the Registry. 029 005 Resolution No. 98-15 Page 2 B. Selection Procedure Except as hereinafter provided, the selection of firms for major services shall conform with LQMC Section 3.32 and the following: 1 . Form Selection Committee. The Selection Committee (Committee) shall comply with LQMC Section 3.32.020B. The City Council may authorize the retention of a private consultant to function as the Selection Committee. 2. Review Qualifications. The Committee shall review the Registry for qualifications of firms which offer the required services. If an insufficient number of qualified firms is found in the Registry, the Committee shall issue a Request for Statements of Qualifications (RFQ). The RFQ shall provide a general description of the services required and shall request that firms submit Statements of Qualifications to perform those services. 3. Select Short List of Most Qualified Firms. The Committee shall select a list of the most qualified firms (the "short list"). The short list shall include, where possible, at least three but normally not more than five firms. 4. Issue Request for Proposals. The Committee shall issue a Request for Proposals (RFP) to the firms appearing on the short list. The RFP shall contain, at a minimum, a project name, a detailed scope of services to be provided and the date and time by which proposals must be submitted. 5. Form of Proposals. The form of the proposals requested should be commensurate with the category and scope of the services desired and may require sealed fee proposals. a) For projects with well-defined scopes of work, the proposal may consist of an offer to perform the work defined in the RFP, a schedule of performance and a proposed fee. b) For projects with complex or poorly -defined scopes of work, proposals should include, where applicable, specific information regarding each firm's understanding of the project, proposed team, resources, approach, expanded scope of work, work schedule, schedule of fees, and, if appropriate, a fee proposal. c) Any individual or firm proposing to provide construction project management services shall provide evidence that the individual or firm and its personnel carrying out onsite responsibilities have expertise and experience in the services they are to provide. 0006 Resolution No. 98-15 Page 3 6. Review Proposals. The Committee shall review the proposals received and may conduct interviews or hold discussions with the proposing firms. 7. Rank Short-listed Firms. The Committee shall rank the proposing firms according to criteria specified in LQMC Section 3.32.010. 8. Notify Firms. Following the selection process, firms on the short list shall be notified of their positions in the ranking. 9. Open Fee Proposals. Once firms have been notified of their positions in the ranking, the City Manager or representatives of the Department shall open and review the fee proposals (if any) to determine a range of apparently fair and reasonable value of the services to be performed. 10. Negotiate with the Top -Ranked Firm. After firms on the short list have been notified of their positions in the ranking, the City Manager and/or representatives of the contracting department shall, if necessary, negotiate with the top -ranked firm to arrive at mutually -acceptable contract terms. 11. Terminate Negotiation and Begin Negotiation with Next -Ranked Firm. If an agreement cannot be reached with the top -ranked firm, negotiations shall begin with the next firm in the rankings. This process shall be repeated until negotiations are successfully concluded or until the list of qualified firms submitting proposals is exhausted and an agreement cannot be reached. Section 3: Contracts for minor services Minor services are defined as those services having an estimated value of less than twenty five thousand dollars. The solicitation and selection of firms and award of contracts shall conform with LQMC Section 3.32.030 and the following: A. The City Council may award contracts. B. The City manager may award and execute contracts exceeding ten thousand dollars with the approval of the City Council. C. The City Manager may award and execute contracts for ten thousand dollars or less, and may waive competitive bidding requirements if in the best interest of the City, provided there are adequate unencumbered appropriations in the fund accounts against which the expenses are to be charged. 031 007 Resolution No. 98-15 Page 4 D. Department Directors may award and execute contracts for services of two thousand five hundred dollars or less with or without competitive bidding provided there are adequate unencumbered appropriations in the fund accounts against which the expenses are to be charged. Section 4: Exceptions. Exceptions to the procedures specified herein shall be as specified in LQMC Section 3.32.040 and as follows: A. For services other than those requiring the professional judgement of private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management firms, fee proposals need not be sealed and may be opened and considered prior to the ranking of short-listed firms. B. The authority awarding any contract for which cost proposals are received may waive irregularities in the cost proposals provided that such waiver is in the best interest of the City and does not result in unfair advantage to any firm. Section 5: This Resolution supersedes and replaces Resolution 93-28. PASSED, APPROVED and ADOPTED this 3rd day of March, 1998 by the following vote: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena NOES: None ABSENT: None ABSTAIN: None 0 JOHN J PENA, yor City of La Quinta, California 032 008 Resolution No. 98-15 Page 5 ATTEST: WAUNDIRA L. JUHOLA, City Clerk City of La Quinta, California APPROVED AS TO FORM: d,-" o /Z DAWN C. HONEYVALL, City Attorney City of La Quinta, California 033 009 COUNCIL/RDA MEETING DATE: July 2, 2002 Consideration of Revisions to the La Quinta Housing Program for Home Purchase Second Trust Deed Loan RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the revisions to the Second Trust Deed Program to incorporate the impact of current market sales prices in Project Area No. 1 and No. 2. FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: In the 1996-97 fiscal year, the Agency adopted the La Quinta Housing Program to assist very low, low and moderate income households with home purchase opportunities, residential rehabilitation loans, and Agency acquisition of dilapidated vacant single family homes for refurbishment and resale as affordable units, by providing "silent" second trust deed loans. The Second Trust Deed Loan Program has been funded annually and will have assisted 156 households to purchase homes as of June 30, 2002. Several market conditions significantly impacted the home purchase loan program during the last year: 1. Sales prices continued to increase City-wide and the sales prices of many new homes being constructed increased to more than the program's maximum sales price limitation which was established in July, 2001. The impact of these prices resulted in the very low income buyer being priced out of the market, and many low income buyers had a difficult time finding a home to purchase that was within the Agency sales price limit. 2. Interest rates remained at low levels, which should have resulted in more affordable mortgage loan payments, but the financial benefit to low and moderate income buyers was diluted by the price increases. 034 G:\WPDOCS\CC SO Rpts\ccjhfsQSRpt.doc 3. Recently, even low income buyers in Project Area No. 1 have experienced difficulty in locating new homes to buy that were for sale at a price that would meet the requirements of the Agency's loan program pursuant to Redevelopment Law. The reality of current real estate market conditions to the buyer seeking affordable housing is that if values continue to increase, the loan program in future years may only be able to assist moderate income home buyers. In determining what will assist the Agency to continue to fund this program under the constraints of Redevelopment Law given current market conditions, staff has structured revisions that are consistent with the Boys and Girls Club Building Horizons loans for the 2002-2003 fiscal year, and slightly increased the percentage of Agency loan over current funding amounts, while continuing to ensure that the first mortgage holder carries the larger portion of the encumbrance against the property. By eliminating a fixed sales price limitation and allowing the monthly housing cost allowance to determine the sales price a buyer can seek, the Agency is removing this barrier for the low income buyer and assisting the buyer who has saved for a larger down payment or is moving -up from another home to achieve their goals. Staff is recommending: The maximum Agency loan be increased to 60% of the purchase price less down payment for very low income households; to 50% of the purchase price less down payment for low income households; and to $40,000 for moderate income households. Previously it was: Purchase Price Maximum Agency Loan Very Low Income $130,000 $75,000 Low Income $150,000 $65,000 Moderate Income $200,000 $25,000 2. The program will require the first mortgage loan be at least $1,000 greater than the Agency loan for low and moderate households; however, very low income buyers will be allowed an Agency loan that is larger than the first mortgage; and 3. The sales price limitation be removed from the program structure. Instead the monthly housing cost allowance (Attachment 1) provided pursuant to Redevelopment Law will limit the size of the first mortgage and, when combined with the Agency loan and buyer's down payment, will still result in a sales price that is affordable to the buyer's income category. The recommendations are based on the maximum monthly affordable housing cost allowances pursuant to Redevelopment Law. The revised Program Description (Attachment 2) provides complete details, including several examples of how loans structured in this manner would work. G:\WPDOCS\CC Stf Rpts\ccjhfsQSRpt.doc 035 002 FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency Board include: 1 . Approve the revisions to the Second Trust Deed Program to incorporate the impact of current market sales prices in Project Area No. 1 and No. 2; or 2. Do not approve the revisions to the Second Trust Deed Program to incorporate the impact of current market sales prices in Project Area No. 1 and No. 2; or 3. Provide staff with alternative direction. Respectfully submitted, Her�W munity Development Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Riverside County 2002 Affordable Housing Costs for Home Purchase Programs 2. La Quinta Housing Program 2002 Home Purchase Second Trust Deed Loan Program 036 003 G:\WPDOCS\CC Stf Rpts\ccjhfsQSRpt.doc S C) U W Q W J o oo O Q C1 N 00 l0 *A A^ c L o 0 = O � � s h E o O Ln Ln N Ln M o w vwLO a Q o V J y y p J W E 0 V C > o f Q O U N LnLn Q Q1 r- 2 v E o0 0 _ C Ln ID o N M h OU c 4A � � i � a a M Q 0 rn w 3 °� J Q y E 0 c j 0 Ln C N N �. • in n O L o O � f s v d H • o C O O O � N M i0 O N 00 0 Q C NW bMA b�q Q N 0 aj 3 au o c � � a b= O O O t-j ¢ C. %O N N Q1 > v v tq `fl L afl M 0 o O s � va, H 3 E o CD O ., 0 O ui C l0 - N r-z 00 to- N to-, O � � a a � rn a 3 � v aj E j J o V v b� o o � o cm T V T y co N L C to tq O � � s o� � v E u o = of o Ln O O v 7 M w In w 1- w i a c Q o v a v c� C J C W lro J W L E o C 0 o O A N O O O Ln C m n O O O M � N O kO o o� h N = o of 5 o rn co y OU c � 4A i a ►� Q 0 w 3 id J 3 ro J a� ](E b Li M Q m• v, ^ w O 00 00 c c O :Ln q f s 0 m H 3 E Ln OCD 01 Q Q C IA Vi W � v a �o Q 0 rn v v N M J 3 75 J N cu E E 0 > c a� to v O O 0 ¢ � LnM N '_ `°w � L Ln 0 = o X, s E O pj Ln v o a Q Ln 13 0 3 �, is J 3 y E 0 C uL J X: I ATTACHMENT #1 n; "Z :9 c N �37 0('J ATTACHMENT 2 La Quinta Redevelopment Agency - 11W--= L• , , I K - � Z: • • • 2002 Home Purchase Second Trust Deed Loan Program 033 ADOPTED JULY _, 2002 0Oo The purpose of the Home Purchase Second Trust Deed Loan Program funded by the La Quinta Redevelopment Agency (the "Agency") is to provide silent second trust deed mortgages to fund the difference between market sales prices, and a mortgage amount which will provide housing costs that are affordable to very low, low, and moderate income households in the purchase of a residence. The Agency loan program was developed to provide "gap" funding; it funds the difference between the maximum first loan a buyer can obtain and the purchase price less down payment, up to the maximum for the buyer's income category. The 2002.03 Fiscal Year program incorporates the following program revisions: • As a result of new legislation which went into effect in January 2002, the term of the Agency loans has been increased from 30 to 45 years. The sales price limitation has been removed as a program requirement. As in past years, the purchase must take place at a monthly affordable housing cost to the buyer. This monthly not -to -exceed amount limits the size of the first mortgage and, when combined with the Agency loan and buyer's down payment, will result in a sales price that is affordable to the buyer's income category under California Redevelopment Law. Complete details may be found in the following description under the Section titled "Program Description". • The Agency loans have been increased to a maximum of 60% of the purchase price less down payment for very low income households, 50% of the purchase price less down payment for low income households, and $40,000 for moderate income households as long as the total monthly housing costs are within the allowance provided under Redevelopment Law. Complete details and several examples may be found under the Section titled "Program Description". • Asset limitation. In April, 2002, the Redevelopment Agency adopted an asset limitation which will apply to all Agency funded second trust deed loans. This policy is included in the Section titled "Eligible Households". • Implementation process. In April, 2002, the Redevelopment Agency also formally adopted the procedure that is followed to determine eligibility for an Agency loan. This action was taken to reduce the likelihood that a prospective purchaser is provided with inaccurate information about how their income category determination is made and to formalize the procedure that is followed in determining eligibility. • Lender I escrow approval. In April, 2002, the Redevelopment Agency adopted a lender and escrow company approval process. If you have not already submitted your application to be included as an approved lender or escrow company, please contact the Agency's housing consultant. In order to avoid an overconcentration of loans in any one neighborhood, or with one builder / developer, selling realtor or lender, this year, the Agency will again limit the number of loans that one entity may obtain during the first six (6) months of each funding cycle to six (6) loan packages. If unexpended funds remain in this account by the seventh month of each fiscal year, then entities who previously reached their loan limit may apply for and receive additional loans employing unexpended funds. Potential purchase properties must be located in one of the La Quinta Redevelopment Agency's two Redevelopment Project Areas (map attached). 039 ADOPTED JULY _, 2002 007 Program Description Eligible Households - Home purchase loans will be available to very low, low, and moderate income households. The applicable income limits are provided in the attached income limit chart. First Mortgage - Before applying for an Agency second trust deed loan, prospective buyers must receive preliminary loan approval from their first trust deed lender for a fixed rate 30-year mortgage loan. The loan amount must result in a principal and interest payment which, when added to the monthly cost of property taxes and insurance, mortgage insurance or homeowner's association fees (if applicable) and a reasonable utility allowance, results in a total monthly payment that is within the applicable housing cost allowance applicable based on the number of bedrooms or family size whichever is applicable. (Refer to Income Limit Chart definitions). All applications for home buyer assistance must include a copy of the first trust deed lender's loan package, mortgage analysis worksheet and lender's approval letter. MM Eligible Properties - Prospective home buyers may consider a single-family, townhome, or condominium unit that is currently for sale in one of the two (2) Redevelopment Project Areas in the City of La Quinta. Properties with pools are not eligible. Funds may only be used to purchase newly constructed units or units which have been substantially rehabilitated. Newly constructed homes are homes which are under construction at least to the framing stage or are newly constructed and vacant. Evidence of construction is required as part of the loan package. Homes where a lease purchase option agreement was executed by the applicant at the time the unit was newly constructed are also eligible. In such cases, the applicant will be requested to provide a copy of the executed agreement as part of the loan package. Substantially rehabilitated units are homes where either the seller or buyer can demonstrate that the property has been upgraded by the addition of improvements which are equal to 25% of the property's "after rehab" value, including the value of the land. The improvements must be completed prior to submission of the application for the Agency loan, be documented, and have been made within the past year. MM Agency Loan Amounts - The maximum loan amounts for the home purchase loans are as follows: Moderate Income Households: $40,000 Low Income Households: W/o of the purchase price less down payment Very Low Income Households W/o of the purchase price less down payment The Agency loan is used to fund the gap between the maximum mortgage loan for which the buyer qualifies and the purchase price of the home less the buyer's down payment up to the maximum amount for their income category. The applicable maximum Agency loan amounts are not to be considered a fixed amount. In determining the actual Agency loan amount, first deduct the down payment from the sales price, then the maximum mortgage loan which can be extended to the buyer. The remainder is the amount of the Agency loan up to the maximum for the applicable income category. Example #1: a low income family of 4 persons purchasing a new 3 bedroom home at $165,000 - their total monthly housing costs could not exceed $880.25 monthly. If this buyer were making the minimum 3% down payment and could obtain an FHA loan of $90,000 at 7.5% for 30 years, the Agency loan would be $70,050. In this case, their monthly housing costs would be approximately $944 monthly (this amount includes the mortgage principal and interest payment, mortgage insurance, property taxes and insurance, and the $75 utility allowance). Since this amount exceeds the monthly allowance, this Agency loan request cannot be approved. The solution would be for the lender to reduce the first mortgage loan amount and increase the Agency loan requested. A 040 ADOPTED JULY _, 2002 008 mortgage of $82,000 would provide monthly housing costs of approximately $880 and the Agency loan would then be $78,050. Example #2: a low income family of 4 persons purchasing a new 3 bedroom home at $165,000 — their total monthly housing costs could not exceed $880.25 monthly. If this buyer were making the minimum 3% down payment and could obtain a conventional loan of $85,000 at 7.5% for 30 years, the Agency loan would be in the amount of $75,050. In this case, their monthly housing costs would be approximately $873. For low and moderate income households, the Agency loan must be in an amount which is at least $1,000 less than the first mortgage loan. An exception applies for very low income households where the Agency loan amount may be greater than the first mortgage loan to provide a greater home purchase opportunity for households who fall in this income category. Affordability Covenants - In order to ensure that the unit remains affordable to an eligible very low, low, or moderate income household for a minimum of 45 years, affordability covenants will be recorded against the unit when the home purchase loan is funded. em Agency Loan Funds - Funds will only be reserved for applications that are complete on submittal pending completion of construction. The Agency loan funds will be disbursed through escrow to borrowers who meet the eligibility requirements described in the Eligible Households Section, have obtained loan approval from their first trust deed lender, and have sufficient funds for their down payment and closing costs. Loan Description g" Monthly principal and interest payments are not required. The Agency loan will be structured as a "silent" second trust deed mortgage under the following restrictions: • The principal and shared appreciation payments are deferred and shall be forgiven as long as the unit remains affordable to a very low, low, or moderate income household for a forty-five (45) year term. • In the event of a resale during the term of the loan, the property must be sold to a buyer of the same income category as the initial owner at a sales price that results in an affordable housing cost at the time of the sale. • The Agency retains first right to purchase unit from the owner if they are unable to sell the property to an income eligible household at an affordable housing cost to retain the affordability covenants before agreeing to allow the original owner to sell the property at a market sales price. In this event, the principal and shared appreciation payment will be due on sale. MM The loan -to -value ratio shall not exceed 97% of the value of the unit to be purchased. For this purpose: • The loan amount will be the combined total of the home buyer's first trust deed and the Agency second trust deed. • The value of the unit will be the purchase price plus applicable closing costs. am Prospective home buyers must first receive preliminary loan approval from their first trust deed lender for a fixed rate 30-year mortgage loan before applying to receive an Agency second trust deed. MM Prospective home buyers must have sufficient funds for their down payment and any buyer paid closing costs. The use of gift funds as down payment assistance is allowed but must be evidenced by a gift letter. ADOPTED JULY _, 2002 2 009 gm A portion of the non -recurring closing costs may be funded as part of the Agency loan if allowed by the primary lender. In such cases, the Agency's loan -to -value ratio must be met and the total Agency loan must be less than the maximum allowed for that income category. The closing cost assistance amount will be included in the second trust deed loan. MM All applications for home buyer assistance must include a copy of the first trust deed lender's loan package. Funds will only be reserved for loan packages which are complete on receipt; details are contained in the Submittal Requirements Section. The Agency will agree to subordinate to a refinancing of the first mortgage loan only to reduce the interest rate on that mortgage; the owner will not be allowed to remove equity or pay off other debt with the proceeds of a refinancing. The original first mortgage amount may not be exceeded during the term of the Agency loan. These second trust deeds will not subordinate to any subsequent second deeds of trust that may be filed against the property. Eligible Households In order to use Housing Fund monies, the Agency must follow the income and affordable housing cost criteria set forth in the California Redevelopment Law. MM The attached chart presents the 2002 income limits for each family size based on the median income for Riverside County and the maximum affordable housing cost allowance that will apply based on the income category, family size or number of bedrooms in the unit. MM To be eligible for housing assistance, a purchaser (or borrower): • must have an accepted sales contract for the purchase of a home; • must be able to qualify for a first trust deed loan in the appropriate amount; • have gross household income equal to or less than the 2002 income limits for their household size; and • the transaction must take place at an affordable housing cost. Total housing costs include the first mortgage principal and interest, property taxes and insurance, mortgage insurance and HOA fee (if applicable) and a reasonable utility allowance. Monthly housing costs must be equal to or less than the amount allowed for the applicable bedroom or family size and the income category. MM Asset Limitation Requirements: The purpose of an asset limitation for the Redevelopment Agency's (the "Agency's") affordable housing programs is to implement the City and Agency policy that affordable housing be made available only to those individuals and households that are truly in need of assistance to purchase a dwelling unit. The La Quinta Housing Program was designed to assist both first time home buyers and current property owners to secure improved housing, thereby mandating reasonable controls for eligibility. The liquid asset maximum for the buyer of a "for sale" unit is the sum of: 1) The buyer's portion of the down payment plus the buyer's portion of the closing costs, 2) An amount equal to six (6) months of reserves for mortgage payments, taxes, homeowner's association dues, if any, and insurance, and 3) $5,000. ADOPTED JULY _, 2002 3 010 In determining the foregoing, liquid assets include assets such as, but not limited to: 1) Cash deposited in bank accounts, savings accounts, money market fund accounts, and similar type accounts, 2) Value of mutual funds, stocks, bonds, savings certificates, and other investment accounts, 3) Interest and dividends, 4) Value of trusts available to the household, 5) Government disbursements such as social security payments, 6) Any payments or disbursements such as from annuities, retirement accounts, inheritances, lottery winnings, capital gains, insurance settlements, etc., 7) Lump sum receipts such as from inheritances, lottery winnings, capital gains, insurance settlements, etc, and 8) Cash gifts to the applicant or the proceeds from gifts in lieu of cash to the applicant. Excluded from liquid assets are: The monies in retirement accounts, such as the principal and/or interest of annuities, IRAs, 401(k) or Keough plans, that are not periodically disbursed; provided, however, that any hardship or other non -periodic payments, disbursements, or withdrawals, including in the form of a loan, from any of the foregoing type accounts, or any other accounts, permitted to be used for the purchase of housing shall be considered a liquid asset. Although not considered liquid assets, for the purpose of determining total assets in compliance with this policy, the Agency will also include the net value of other real estate owned (current market value less outstanding loan balances) which will not be sold concurrently with the purchase of the property for which the home purchase loan is being secured. However, if other real property is owned and being sold concurrently, the net proceeds from such a sale will be included as an asset. Notwithstanding the foregoing, any applicant having liquid assets of $50,000 or more at the time of the purchase of a dwelling unit (i.e. immediately following the close of escrow for the purchase of the unit) will not be eligible for a loan through the La Quinta Housing Program. Submittal Requirements MM In order to determine a purchaser's or borrower's eligibility, the information listed below should be submitted to the Agency's housing coordinator: • Completed Agency loan application • A copy of the lender's completed loan application (1003), mortgage credit analysis worksheet (MCAW) or 1008, and the lender's prequalification loan approval letter providing the following information: ✓ Name and age of each person who will live in the home. ✓ Present home address and telephone number. ✓ Employer name, address and telephone number for each employed member of the household. ✓ Anticipated annual gross income from all sources for each employed member of the household, including: 1) Wages, salaries, overtime pay, commissions, etc., including unemployment and disability compensation or public assistance. 2) Interest income or income from business or rental property. 3) Periodic receipts such as social security, annuities, pensions or retirement funds, alimony, child support, etc. • Last two pay stubs for each employed member of the household or year to date profit and loss statement for self-employed individuals. Documentation to support all other income. 043 ADOPTED JULY _, 2002 4 011. • Last two years federal income tax returns, including W-2's. • Last two bank statements for all checking and/or savings accounts. • Accepted sales contract for the purchase of a qualified property. • Evidence that construction is at least to the framing stage in the form of a copy of the job site City Building Department inspection card. r)44 ADOPTED JULY _, 2002 5 - 012 LA QUINTA REDEVELOPMENT AGENCY Redevelopment Project Areas Project Arec Boundades u w �� i NORTH THE COVE z C }! j LL Z LL HIGHWAY I I I :AVE141JE­484 AVENUE 50 Exisfing project Area No. 2 ExIsting holect Area No, I ■ AVENUE54 j. 56 04-5- ADOPTED JULY 2002 013 E oroil o � L Q� W 0 O _ £ c @► c c c v :a Pz U) N. v a o y} L 0 7 O g c O O O c c CO W yy U, N. o t 49. f0 O C £ p 8 O 0 C a N 20 N C7 O L d P W 0 O £ QQ c 8 o c ti t71 a R ° o A 8 1 � 93 � s0 r � 01 W c 0 c CL c W 93 o O Clk N o '0 S! M &t L � d 0 7 O S ai Q iq c £ 0 0 6 c a d w LO aR co LO o L d W N c O C a c m 10 0 C 9 Irelf7 le IQ 0 L N 0 Gl S £ 0 0 c a R b Cl) Z O H Z w W O c .7 0 2 T i 2 1- N m d E 8 c .d d O m ti v 0 L d W 0 E 0 o O 014 CL 4t � � /7� .0kD E2'a«t > @ $ c e e (, k22���. C, S e § -0 0 Cc � cu--�22. u = o �. f oc CL0M. o E ®� o (. / o - @. CD c o / / k k ao�o=0 0 cu > c I0EGf2 »� & Ca CO >, E g E k S ° o o CD c c _ — c <�\2R cn m2E§ �ttco �E® > C 7 / 0 EW7/ § E 2 E a§cg �0 M\22 &2k cu a\ k C \. // £ % 0 cu a) CO CO a) \/� CL\ 3/ k�7 k7�0 _ § 2 E $k2Q k� \§fc _ CD CD — W E E a / E & U) 2 b k�2 $a0 / § t §20 �cu\ e 2 $ m \ a § _ =k�k cu o E k\k0 §�5 C £ E § 2 § 0 2 a � =ka a)0 200 04 =7Ek c 7 a)o = E kkfB Q 2 cm kEE= @ gMO 2 $ / k § 2 =C— f S 2 \ } /_2$ /2 CL k co �0 £ 047 o15 � La Quinta Housing Program Implementation Manual In order to use Housing Fund monies, the La Quinta Redevelopment Agency (the "Agency") must follow the income and affordable housing cost criteria set forth in the California Redevelopment Law. The 2002 income limit chart presents maximum allowable incomes for each family size based on the median income for Riverside County and the maximum affordable housing cost allowance that will apply based on the income category, family size or number of bedrooms in the unit. To be eligible for housing assistance, a purchaser (or borrower): • Must have gross household income equal to or less than the 2002 income limits for their household size; • Must be able to qualify for a first trust deed loan in an amount, which when added to the anticipated loan provided by the Agency, and at least a 3% down payment, will equal the purchase price of the home; • Must have an accepted sales contract for the purchase of a home; and • The transaction must take place at a monthly affordable housing cost to that household. Total housing costs include the first mortgage principal and interest, property taxes and insurance, mortgage insurance and HOA fee (if applicable), and a reasonable utility allowance. Monthly housing costs must be equal to or less than the amount allowed for the applicable bedroom or family size and the income category. The exact amount of the Agency loan is the difference between the purchase price of the home less the maximum first mortgage the applicant can obtain and the down payment being made, up to the maximum loan which can be provided to the applicant's income category, i.e. very low, low or moderate income. If a purchaser can qualify for a first mortgage loan equal to or greater than the purchase price, they are not eligible for Agency home purchase loan assistance. Submittal Requirements In order to determine a purchaser's or borrower's eligibility for a home purchase loan through the La Quinta Housing Program, the information listed below should be submitted to the Agency's housing coordinator. The application package should be submitted as soon as the lender feels they will be able to provide a loan to the applicant. It is not necessary to have full and final first loan approval before submitting the package to the Agency's housing consultant for eligibility review for the Agency loan. It is extremely important that if the applicant is not eligible at the income level anticipated, or if the applicant exceeds the moderate income limit, G:\WPDOCS\Documents\Q21mplManua1.wpd.doc 0; 1/0 La Quinta Redevelopment Agency Adopted: April 19, 2002 everyone involved has the opportunity to be made aware before the applicant has made financial and life changing decisions regarding the proposed home purchase. The loan package should contain: • Completed Agency loan application • A copy of the lender's completed loan application 0 003), mortgage credit analysis worksheet (MCAW) or 1008, and the lender's prequalification loan approval letter providing the following information: ✓ Name and age of each person who will live in the home. ✓ Present home address and telephone number. ✓ Employer name, address and telephone number for each employed member of the household. ✓ Anticipated annual gross income from all sources for each employed member of the household, including: 1. Wages, salaries, overtime pay, commissions, etc., including unemployment and disability compensation or public assistance. 2. Interest income or income from business or rental property. 3. Periodic receipts such as social security, annuities, pensions or retirement funds, alimony, child support, etc. • Last two pay stubs for each employed member of the household or year to date profit and loss statement for self-employed individuals. Documentation to support all other income. • Last two years federal income tax returns, including W-2's. • Last two bank statements for all checking, savings, and/or investment accounts. • Accepted sales contract for the purchase of a qualified property. • If the property is new construction - evidence that construction is at least to the framing stage in the form of a copy of the job site City Building Department inspection card. • If the property is a resale that has been substantially rehabilitated, copies of all receipts substantiating that the property improvements are at least equal to 049 25% of the current market value of the property. ;917 G:\WPDOCS\Documents\Q21mplManua1.wpd.doc 2 La Quinta Redevelopment Agency Eligibility Review Process Adopted: April 19, 2002 Another very important step in the approval process is for the realtor and lender to ensure that the applicant is aware that there are two levels of approval; the first is the lender's approval for the first mortgage loan and the second is the eligibility approval for the Agency's second trust deed loan. If a realtor or lender advises an applicant that they are eligible for the Agency loan, it is their personal opinion, not a fact. Approval for the first mortgage loan does not automatically mean that the applicant is eligible for the second trust deed loan unless the lender has been advised in writing by the Agency's housing consultant. All applications for Agency loans are date and time stamped on receipt by the Agency's housing consultant to ensure that they are processed in the order received. Funds may only be reserved, pending completion of the eligibility review, for applications that are complete. If a loan package is not complete on receipt, a FAX is sent immediately to the Lender requesting the missing documentation. Funds will be reserved, pending completion of the eligibility review, when the missing documentation has been received. The review process consists of the following determinations made through the completion of a worksheet with information taken from the applications and back-up documentation contained in the loan application package. We are required to ensure that the loan will be provided in compliance with the requirements of Redevelopment Law for the use of the Housing Fund monies. The requirements are: 1) that the household's gross income be within the limits established annually from Riverside County median income and adjusted by family size, and 2) that the transaction take place at an affordable housing cost to that household. The steps in the eligibility review process are to: 1. Review the application package to determine whether it contains all of the required documentation as listed above and on the Agency application 2. Confirm applicant(s) name(s); household size, ages, and relationship; number of employed persons 3. Determine the subject property address, sales price, down payment, 1 st loan amount and the requested Agency loan amount 4. Determine gross household income: 050 GAWPDOCS\Documents\Q21mpl Manual.wpd.doc 3 0 18 La Quinta Redevelopment Agency Adopted: April 19, 2002 • From current pay check stubs: calculate current year gross income for all members of the household having an income. If an applicant indicates that he/she will be working fewer hours in the future, the new income basis must be established for at least 3 months before an eligibility determination can be made. In this case, income will be calculated by the total of the year-to-date gross and the remainder of the year will be projected based upon the 3 month demonstrated gross income. • For self-employed persons, net income from that business is used to determine the amount that will be reasonably expected for the year. A year to date profit and loss statement is required which will provide the basis for projecting the net income for the remainder of the year. • From prior year tax returns and W-2's: determine the income history and whether other types of income have been received; i.e. interest / dividends, pensions, self employment earnings, rental property income. Documentation that has not been provided will be requested. • From other income documentation: Amount received annually • Determine amount and frequency other income, i.e. child support, SSI payments, etc. • Gross household income is determined by projecting or annualizing the current gross income from all sources. If a bonus is received but not guaranteed, this amount is not annualized; the total is included in the estimated gross. The same holds true for overtime income which may or may not be annualized, depending on the frequency of overtime worked. 5. Determine amount of assets: • Verify that the applicant appears to have the funds for the down payment and closing costs. From bank statements and tax returns, determine the estimated amount of interest income that will be earned. • Calculate total assets pursuant to the Asset Limitation policy. 6. Housing Cost Allowance Calculations: The gross household income calculations provide a determination as to the household's income category, i.e. very low, low or moderate income. If a household's gross income exceeds the limit for moderate income (120% of Riverside County median income), they do not qualify for an Agency loan. G:\WPDOCS\Documents\Q21mplManual mpd.doc � 51_ 4 G� 1 La Quinta Redevelopment Agency Adopted: April 19, 2002 Redevelopment Law provides that the applicable monthly housing cost allowance for a 2 bedroom unit is the allowance established for a 3 person household, a 3 bedroom unit is the allowance for a 4 person household and a 4 bedroom unit is the allowance for a 5 person household even if the home is being purchased by a smaller household. However, if the family size is larger, the actual family size determines the applicable housing cost allowance, i.e. if 5 persons were purchasing a 3 bedroom home, the allowance for 5 persons would be used. The actual monthly housing costs are determined from the Mortgage Credit Analysis Worksheet ("MCAW") or 1008 form and verified by the reviewer's calculations. This amount must be less than the monthly housing cost allowance for the household's income category and adjusted family size. The Law also provides that moderate income households may not have monthly housing costs that are less than 28% of their gross income nor exceed 35% of 1 10% of median income adjusted for family size or by the number of bedrooms. Once the eligibility review has been completed and the housing consultant has determined that the applicant household is income eligible and that the transaction will take place at an affordable housing cost for their income category, an eligibility approval letter will be issued. This approval only applies to the information provided in the application package, including the family size, borrower and co -borrower income, the property sales price, the first mortgage loan amount, interest rate and mortgage payment. Any changes subsequent to the eligibility approval require further review by the Agency housing consultant. If an applicant wishes to purchase a different property than the property covered by their eligibility approval, the previous approval is rescinded and the funds reserved for that Loan are cancelled. When updated application information on the new property has been received, a new eligibility approval will be required and if funds are available at that time, they will be reserved for the revised application. Prior to preparation of the Agency loan documents, the approval letter requests copies of the: • Appraisal, • Preliminary Title Report, • Escrow instructions and amendments for vesting, the final first loan amount and interest rate, and the second trust deed loan in favor of the City of La Quinta Redevelopment Agency, and • a copy of the City Building Department's Certificate of Occupancy if the property is new construction. 0 5' 000 G:\WPDOCS\Documents\Q21mplManua1 mpd.doc 5 La Quinta Redevelopment Agency Adopted: April 19, 2002 Once the above have been received, every effort is made to prepare the Agency loan documents concurrently with the preparation of the first lender's loan documents. All transfers of loan documents are made by overnight mail to ensure timely escrow processing. When ready, the Agency loan documents are forwarded to escrow, who obtains the buyer signatures and the Agency's housing consultant requests the City funds be transferred to the title company pursuant to the instructions in the Preliminary Title Report. Escrow then forwards the document package to the City for signature on behalf of the Redevelopment Agency. The City returns the original documents to the housing consultant for verification that they are fully executed; and the recordable documents are then returned to escrow for loan closing and recordation. 053 G:\WPDOCS\Documents\Q21mpIManua1.wpd.doc 6 n 9