2003 06 17 RDAe4 4 449ha
Redevelopment Agency Agendas are
Available on the City's Web Page
@a www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
Tuesday, June 17, 2003 - 2:00 P.M.
Beginning Resolution No. RA 2003-10
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson
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.
CLOSED SESSION
NOTE: Time permitting, the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
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 78-990 MILES AVENUE (APN: 604-032-022).
PROPERTY OWNER/NEGOTIATOR SHEILA WELDON.
Redevelopment Agency Agenda 1 June 17, 2003
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, MARK WEISS,
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 AVENUE 52 AND
JEFFERSON STREET (APN: 772-220-007). PROPERTY OWNER/NEGOTIATOR:
LUSARDI.
RECONVENE AT 3:00 P.M.
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 should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF JUNE 3, 2003.
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 JUNE 17, 2003.
2. TRANSMITTAL OF TREASURER'S REPORT DATED APRIL 30, 2003.
3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED APRIL 30,
2003.
4. APPROVAL OF A CONTRACT WITH RUTAN AND TUCKER, LLP FOR 2003/2004
LEGAL SERVICES.
5. APPROVAL OF A CONTRACT AGREEMENT WITH GMA INTERNATIONAL FOR
MASTER PLAN COORDINATION SERVICES FOR SILVERROCK RANCH.
Redevelopment Agency Agenda 2 June 17, 2003
6. ADOPTION OF A RESOLUTION APPROVING THE AGENCY'S PAYMENT FOR THE
PURCHASE AND SALE OF REAL PROPERTY BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY ("AGENCY") AND WILLIAM D. CALKINS AND LYNN R.
KUNKLE, CO -CONSERVATORS OF THE ESTATE OF CHARLES BRIAN MURPHY, AS
TO AN UNDIVIDED 25% INTEREST; LYNN R. KUNKLE, AN UNMARRIED MAN, AS
TO AN UNDIVIDED 25% INTEREST; AND AM PARTNERSHIP, AS TO AN
UNDIVIDED 50% INTEREST ("SELLER") FOR THE PROPERTY LOCATED ALONG
THE EAST LINE OF AVENIDA MONTEZUMA.
BUSINESS SESSION
1. CONSIDERATION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2003/2004.
A. RESOLUTION ACTION
STUDY SESSION
1. DISCUSSION REGARDING A BUSINESS PLAN FOR SILVERROCK RANCH.
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on July
1, 2003, 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, La Quinta, CA 92253.
Redevelopment Agency Agenda 3 June 17, 2003 "
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of Tuesday, June 17, 2003, 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
1 1 1, on Friday, June 13, 2003.
DATED: June 13, 2003
JUNE S. GREEK, CIVIC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 4 June 17, 2003
AGENDA CATEGORY:
BUSINESS SESSION
COLTNCIL/RDA MEETING DATE: JLTNE 17, 2003 /
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated June 17, 2003
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated June 17, 2003 of which $56,148.46
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
J
COUNCIL/RDA MEETING DATE: ,June 17, 2003
ITEM TITLE:
Transmittal of Treasurer's Report
as of April 30, 2003
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
COUNCIL/RDA MEETING DATE: ,June 17, 2003
Transmittal of Revenue and Expenditure Report for
April 30, 2003
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the Statement of Revenue and Expenditures for April 30, 2003 for the
La Quinta Redevelopment Agency.
Fspully submi ted,
Falcon , Finance Director
roved for submission b
(ZY j
Thomas P. Genovese, Executive Director
Attachments: 1. Revenue and Expenditures for April 30, 2003
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO.1:
DEBT SERVICE FUND:
Tax Increment
20,140,132.00
10,578,400.99
9,561,731.01
52.520%
Allocated Interest
0.00
87,045.44
(87,045.44)
0.000%
Non Allocated Interest
0.00
9,609.45
(9,609.45)
0.000%
Interst - County Loan
0.00
0.00
0.00
0.000%
Interest Advance Proceeds
595,757.00
0.00
595,757.00
0.000%
Transfers In
1,738,783.00
1,738,782.66
0.34
100.000%
TOTAL DEBT SERVICE
22,474,672.00
12,413,838.54
10,060,833.46
55.230%
CAPITAL IMPROVEMENT FUND:
0.00
7,732.56
(7,732.56)
0.000%
Pooled Cash Allocated Interest
125,000.00
496,141.83
(371,141.83)
396.910%
Non Allocated Interest
Litigation Settlement Revenue
0.00
55,789.22
(55,789.22)
0.000%
Loan Proceeds
0.00
0.00
0.00
0.000%
Rental Income
41,500.00
32,426.80
9,073.20
78A40%
Transfers In
6,000,000.00
6,000,000.00
0.00
100.000%
TOTAL CAPITAL IMPROVEMENT
6,166,500.00
6,592,090.41
(425,590.41)
106.900%
LOW/MODERATE TAX FUND:
5,035,033.00
2,644,600.25
2,390,432.75
52.520%
Tax Increment
Allocated Interest
200,000.00
18,348.10
181,651.90
9.170%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Miscellaneous revenue
0.00
0.00
0.00
0.00
0.00
0.00
0.000%
0.000%
Non Allocated Interest
LQRP-Rent Revenue
341,000.00
313,160.77
27,839.23
91.840%
Home Sales Proceeds
150,000.00
0.00
150,000.00
0.000%
Sale of Land
0.00
0.00
0.00
0.000%
Sewer Subsidy Reimbursements
0.00
69,370.08
(69,370.08)
0.000%
Rehabilitation Loan Repayments
0.00
208,178.46
(208,178.46)
0.000%
Transfer In
1,825,000.00
0.00
1,825,000.00
0.000%
TOTAL LOW/MOD TAX
7,551,033.00
3,253,657.66
4,297,375.34
43.090%
LOWIMODERATE BOND FUND:
0.00
0.00
0.00
0.000%
Allocated Interest
Home Sale Proceeds
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
11,889.73
(11,889.73)
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0.00
11,889.73
(11,889.73)
0.000%
L
2
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO.1:
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
BONDINTEREST
INTEREST CITY ADVANCE
PASS THROUGH PAYMENTS
ERAF SHIFT
TRANSFERS OUT
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
SERVICES
LAND ACQUISITION
ASSESSMENT DISTRICT
ADVERTISING -ECONOMIC DEV
ECONOMIC DEVELOPMENT
BOND ISSUANCE COSTS
CAPITAL - BUILDING
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL CAPITAL IMPROVEMENT
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
BUILDING HORIZONS
LQ RENTAL PROGRAM
LQ HOUSING PROGRAM
LOWMOD VILLAGE APARTMENTS
APARTMENT REHABILITATION
FORECLOSURE ACQUISITION
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD TAX
LOW/MODERATE BOND FUND
PERSONNEL
SERVICES
REIMBURSEMENT TO GEN FUND
HOUSING PROJECTS
TRANSFERS OUT
TOTAL LOW/MOD BOND
07/01/2002.4/30103 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
586,870.00
314,816.96
0.00
272,053.04
1,567,022.00
1,567,788.00
0.00
(766.00)
6,991,075.00
6,993,437.12
0.00
(2,362.12)
595,757.00
408,964.18
0.00
186,792.82
9,649,709.00
5,148,564.07
0.00
4.501,144.93
723,550.00
723,518.00
0.00
32.00
6,000,000.00
6,000,000.00
0.00
0.00
26,113,983.00
21,157,088.33
0.00
4,956,894.67
4,900.00
5,729.20
0.00
(829.20)
214,379.00
147,992.21
0.00
66,386.79
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16,700.00
15,267.14
0.00
1,432.86
552,682.00
223,386.09
0.00
329,295.91
199,880.00
18,315.66
0.00
181,564.34
0.00
0.00
0.00
0.00
1,086,106.00
905,088.40
0.00
181,017.60
9,359,859.77
1,549,149.05
0.00
7,810,710.72
11,434,506.77
2,864,927.75
0.00
8,569,579.02
4,900.00
5,729.20
0.00
(829.20)
239,315.00
207,447.93
0.00
31,867.07
210,000.00
172,700.00
0.00
37,300.00
329,000.00
516,022.78
0.00
(187,022.78)
2,500,000.00
1,729,884.00
0.00
770,116.00
3,000,000.00
0.00
0.00
3,000,000.00
626,000.00
0.00
0.00
626,000.00
430,000.00
0.00
0.00
430,000.00
206,485.00
172,070.70
0.00
34,414.30
3,953,426.00
2,804,409.20
0.00
1,149,016.80
11,499,126.00
5,608,263.81
0.00
5,890,862.19
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00 0.00
3
LA QUINTA REDEVELOPMENT AGENCY
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO.2:
DEBT SERVICE FUND:
Tax Increment
9,440,205.00
4,942,825.20
4,497,379.80
52.360%
Allocated Interest
0.00
24,536.44
(24,536.44)
0.000%
Non Allocated Interest
0.00
558.84
(558.84)
0.000%
Interest Advance Proceeds
863,674.00
0.00
863,674.00
0.000%
Transfer In
338 895.00
338,895.00
0.00
100.000%
TOTAL DEBT SERVICE
10,642,774.00
5,306,815.48
5,335,958.52
49.860%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
0.00
37,996.35
(37,996.35)
0.000%
Non Allocated Interest
20,000.00
5,315.26
14,684.74
26.580%
Developer Agreement
0.00
0.00
0.00
0.000%
Transfers In
1,100,000.00
1,100,000.00
0.00
100.000%
TOTAL CAPITAL IMPROVEMENT
1,120,000.00
1,143,311.61
(23,311.61)
102.080%
LOW/MODERATE TAX FUND:
Tax Increment
2,360,051.00
1,235,706.30
1,124,344.70
52.360%
Allocated Interest
20,700.00
58,950.40
(38,250.40)
284.780%
Non Allocated interest
0.00
0.00
0.00
0.000%
ERAF Shift - Interest
17,507.00
17,507.00
0.00
100.000%
Sale of Land
801,358.00
0.00
801,358.00
0.000%
Transfer In
16 964.00
0.00
16,964.00
0.000%
TOTAL LOW/MOD TAX
3,216,580.00
1,312,163.70
1,904,416.30
40.790%
LOW/MODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
2,897.08
(2,897.08)
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
0.00
2,897.08
(2,897.08)
0.000%
10
4
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO.2:
DEBT SERVICE FUND:
SERVICES
BOND PRINCIPAL
BONDINTEREST
INTEREST CITY ADVANCE
INTEREST - ERAF UMOD LOAN
PASS THROUGH PAYMENTS
TRANSFERS OUT
TOTAL DEBT SERVICE
07/01/2002-4/30/03 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
161,020.00
149,787.44
0.00
11,232.56
172,978.00
248,496.40
0.00
(75,518.40)
586,665.00
508,016.95
0.00
78,648.05
863,674.00
716,320.70
0.00
147,353.30
17,507.00
17,507.00
0.00
0.00
7,995,475.00
3,995,892.37
0.00
3,999,582.63
1,100,000.00
1,100,000.00
0.00
0.00
10,897,319.00
6,736,020.86
0.00
4,161,298.14
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
3,466.77
0.00
(566.77)
SERVICES
158,774.00
84,791.52
0.00
73,982.48
ADVERTISING -ECONOMIC DEV
33,300.00
30,996.88
0.00
2,303.12
ECONOMIC DEVELOPMENT ACTIVITY
93,425.00
15,400.00
19,870.00
58,155.00
REIMBURSEMENT TO GEN FUND
34,111.00
28,426.00
0.00
5,685.00
TRANSFERS OUT
(245,583.14)
(226 428.00)
0.00
(19,155.14)
TOTAL CAPITAL IMPROVEMENT
76,926.86
(63,346.83)
19,870.00
120,403.69
LOW/MODERATE TAX FUND:
PERSONNEL
SERVICES
SEWER SUBSIDIES
LQ RENTAL PROGRAM
ADAMS 48TH PLANNING
LOW MOD HOUSING PROJECTS
FORECLOSURE ACQUISITION
REIMBURSEMENT TO GEN FUND
TRANSFERS OUT
TOTAL LOW/MOD TAX
2,900.00
3,466.77
0.00
(566.77)
197,049.00
160,914.05
0.00
36,134.95
0.00
0.00
0.00
500,000.00
132,880.00
0.00
367,120.00
850,000.00
250,000.00
0.00
600,000.00
247,296.00
0.00
0.00
247,296.00
15,000.00
0.00
0.00
15,000.00
71,298.00
59,414.90
0.00
11,883.10
4,448,586.69
585,752.70
0.00
3,862,833.99
6,332,129.69
1,192,428.42
0.00
5,139,701.27
LOW/MODERATE BOND FUND
PERSONNEL
0.00
0.00
0.00
SERVICES
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
0.00
0.00
0.00
TRANSFERS OUT
2,375,928.46 2,358,964.46
0.00
16,964.00
TOTAL LOWIMOD BOND
2,375,928.46 2,358,964.46
0.00
16,964.00
5
Expenditures
Grand TOTAL
City
Other Funds
Financing Authority
RDA 1
RDA 2
Total Per G/L
Variance
Total Mid Year Requests.
07/01/2002.4/30/03 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
151,900,210.26 71,168,379.28 148,112.75 80,583,718.23
19,276,830.77
8,698,760.19
93,562.00
10,484,508.58
63,336,131.13
21,933,125.80
34,680.75
41,368,324.58
557,328.58
682,146.49
0.00
(124,817.91)
49,047,615.77
29,630,279.89
0.00
19,417,335.88
19,682,304.01
10,224,066.91
19,870.00
9,438,367.10
Total 151,900,210.26
71,168,379.28
148,112.75
80,583,718.23
151,900,210.26
71,168,379.28
148,112.75
80,583,718.23
0.00
0.00
0.00
0.00
4,224,321.00
0
CITY OF LA QUINTA
EXPENDITURES - ALL FUND; 07/01/2002.4/30/03
FUNDs
BUDGET
EXPENDITURES
ENCUMBERED
REMAINING
BUDGET
0
0
General
$19,276,830.77
$8,698,760.19
$93,562.00
$10,484,508.58
45.1%
Library
0.00
0.00
0.00
0.00
0.0%
Gas Tax
569,900.00
474,916.60
0.00
94,983.40
83.3%
Cmaq/lstea
595,235.00
0.00
0.00
595,235.00
0.0%
Federal Assistance
164,825.00
7,320.00
0.00
157,505.00
4.4%
Proposed Assessment District
142,657.21
150.00
0.00
142,507.21
0.1 %
Slesf (Cops) Revenue
100,287.12
75,287.12
0.00
25,000.00
75.1%
Local Law Enforcement
0.00
0.00
0.00
0.00
0.0%
Violent Crime Task Force
40,000.00
20,788.79
0.00
19,211.21
52.0%
Lighting & Landscaping
829,700.00
691,416.70
0.00
138,283.30
83.3%
Quimby
200,826.35
6,267.35
0.00
194,559.00
3.1%
Infrastructure
3,343,089.00
1,235,912.94
0.00
2.107,176.06
37.0%
Village Parking
(1,892.85)
0.00
0.00
(1,892.85)
0.0%
South Coast Air Quality
5,700.00
8,042.61
0.00
(2,342.61)
141.1 %
Lq Public Safety Officer
2,000.00
0.00
0.00
2,000.00
0.0%
Interest Allocation
0.00
0.00
0.00
0.00
0.0%
Capital Improvement
41,880,274.26
13,245,827.99
17,054.43
28,617,391.84
31.6%
Lq Norte Capital Improvement
0.00
0.00
0.00
0.00
0.0%
Urban Forestry
1,100.00
0.00
0.00
1,100.00
0.0%
Equipment Replacement
352,567.00
134,639.51
0.00
217,927.49
38.2%
Arts In Public Places
481,761.00
273,246.13
0.00
208,514.87
66.7%
Transportation
1,302,363.00
984,206.01
0.00
318,156.99
75.6%
Parks & Recreation
5,391,927.00
4,216,158.29
0.00
1,175,768.71
78.2%
Civic Center
568,518.00
200,184.15
0.00
368,333.85
35.2%
Library Development
5,231,894.04
51,396.17
0.00
5,180,497.87
1.0%
Community Center
0.00
0.00
0.00
0.00
0.0%
Street Facility
0.00
0.00
0.00
0.00
0.0%
Park Facility
0.00
0.00
0.00
0.00
0.0%
Protection
1,500,000.00
0.00
0.00
1,500,000.00
0.0%
ry County DIF
0.00
0.00
0.00
0.00
0.0%
Information Technology
633,400.00
307,365.44
17,626.32
308,408.24
48.5%
La Quinta Financing Authority
557,328.58
682,146.49
0.00
(124,817.91)
122.4%
RDA Project Area No. 1
49,047,615.77
29,630,279.89
0.00
19,417,335.88
60.4%
RDA Project Area No. 2
19,682,304.01
10,224,066.91
19,870.00
9,438,367.10
51.9%
Total
$151,900,210.26
$71,168,379.28
$148,112.75
$80,583,718.23
46.9%
13
cty 4 ,CP Qulicfw
COUNCIL/RDA MEETING DATE: .tune 17, 2003
ITEM TITLE: Approval of the 2003-2004 Contract
with Rutan & Tucker, LLP for Legal Services
See City Council staff report.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
4 �Qur�c1w
COUNCIL/RDA MEETING DATE: .tune 17, 2003
ITEM TITLE:
Approval of a Contract Services Agreement with
GMA International for Master Planning Services for
SilverRock Ranch
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve a contract services agreement with GMA International to provide master
planning services for the SilverRock Ranch project and authorize the Executive Director
to execute the contract.
FISCAL IMPLICATIONS:
The contract is for an amount not to exceed $144,600. 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 planning, engineering and
property management.
BACKGROUND AND OVERVIEW:
The Redevelopment Agency discussed SilverRock Ranch implementation activities
during a study session on May 20, 2003. Included within that discussion was a
continued role for GMA International to work with the Agency to a help ensure a
"seamless" plan implementation. Staff has negotiated a new contract with GMA
International for services outlined within the attached contract's scope of services to
include:
• Preparation of a Water Management Plan
• Master Plan Refinement in Coordination with the Golf Course Architect
• Preparation of a Conceptual Grading and Drainage Plan
• Preparation of Perimeter Conceptual Landscape Plan
• Preparation of Project Entry Concept Plan
• Preparation of Detail Design for the Project Entry at Avenue 52
• Website Maintenance
• Preparation of Detail Design for the Project Entry at Avenue 52
• Website Maintenance
• Miscellaneous Planning Services
• Coordination
The term of the contract is set up for two years but may be terminated at any time
with thirty days notice. Approval of the contract will establish a project management
team including GMA International, Palmer Course Design Company (contract under
negotiation), Berryman and Henigar (Roy Stephenson, Development Coordinator), RSG
and Agency staff.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve a contract services agreement with GMA International to provide
master planning services for the SilverRock Ranch project and authorize the
Executive Director to execute the contract ; or
2. Do not approve a contract services agreement with GMA International to provide
master planning services for the SilverRock Ranch project; or
3. Provide staff with alternative direction.
Respectfully submitted,
f
Mark Weiss, Assistant Executive Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Contract Services Agreement
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CONTRACT SERVICES AGREEMENT
This AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and
entered into by and among the La Quinta Redevelopment Agency (the "Agency"), a California
public corporation, and GMA International (the "Contractor"). The parties hereto agree as
follows:
1. SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions of the
Agreement, the Contractor shall provide those services related to "SilverRock Ranch" as
specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by
this reference (the "services" or "work"). Contractor warrants that all services will be performed
in a competent, professional and satisfactory manner in accordance with the standards prevalent
in the industry for such services. Services will be provided to the Agency. For convenience, the
Agency is referred to here in as the "City".
1.2 Contractor's Proposal. The Scope of Services shall include the
contractor's proposal or bid, if any, which shall be incorporated herein by this reference as
though fully set forth herein. In the event of any inconsistency between the terms of such
proposal and this Agreement, the terms of this Agreement shall govern.
L.3 Compliance with Law. All services rendered hereunder shall be
provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of
the Agency and any and all Federal, State or local governmental agency of competent
jurisdiction.
1.4 Licenses, Permits, Fees and Assessments. Contractor 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 required by this Agreement. Contractor shall have the sole
obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest,
which may be imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.5 Familiarity with Work. By executing this Agreement, Contractor
warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it
has investigated the site of the work and fully acquainted itself with the conditions there existing,
(c) it has carefully considered how the work should be performed, and (d) it fully understands the
facilities, difficulties and restrictions attending performance of the work under this Agreement.
Should the Contractor discover any latent or unknown conditions materially differing from those
inherent in the work or as represented by the City, it shall immediately inform city of such fact
and shall not proceed except at Contractor's risk until written instructions are received from the
Contract Officer (as defined in Section 4.2 hereof).
1.6 Care of Work. The Contractor shall adopt reasonable methods during the
life of the Agreement to furnish continuous protection to the work and the equipment, materials,
17
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papers and other components thereof to prevent losses or damages, and shall be responsible for
all such damages, to person, or property, until acceptance of the work by City, except such losses
or damages as may be caused by city's own negligence. The performance of services by
contractor shall not relieve contractor from any obligation to correct any incomplete, inaccurate
or defective work at no further cost to the City, when such inaccuracies are due to the negligence
of Contractor.
1.7 Additional Services. In accordance with the terms and conditions of this
Agreement, the contractor shall perform services in addition to those specified in the Scope of
Services (Exhibit "A") when directed in writing to do so by the Contract Officer, provided that
Contractor shall not be required to perform any additional services without compensation.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to the Agreement, the
Contractor shall be compensated in accordance with the "Schedule of Compensation" attached
hereto as Exhibit "B" and incorporated herein by this reference. The Consultant shall be
compensated in an amount not exceeding One Hundred Forty -Four Thousand Six Hundred
Dollars ($144,600) (the "Contract Sum"). The method of compensation set forth in the Schedule
of Compensation will include payment for time and materials based upon the Contractor's rates
as specified in Exhibit `B", or such other methods as may be specified in the Schedule of
Compensation (Exhibit `B"). Compensation may include reimbursement for actual and
necessary expenditures for reproduction costs, transportation expenses, telephone expense,
premiums for bonds and insurance, and similar costs and expenses when and if specified in the
Schedule of Compensation (Exhibit `B").
2.2 Method of Payment. Any month in which Contractor wishes to receive
payment, Contractor shall submit to the City no later than the tenth (10t') working day of such
month, in the form approved by the Contract Officer, an invoice for services rendered prior to the
date of the invoice. Such invoice shall (1) describe in detail the services provided, including
time and materials; (2) specify each staff member who has provided services and the number of
hours assigned to each such staff member; and (3) indicate the total expenditures to date. Such
invoice shall contain a certification by a principal member of Contractor specifying that the
payment requested is for work performed in accordance with the terms of this Agreement. The
Agency will pay Contractor for all expenses stated thereon which are approved by the Agency
pursuant to this Agreement no later than the last working day of the month.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this
Agreement. .
3.2 Schedule of Performance. All services rendered pursuant to this
Agreement shall be performed diligently and within the performance of this Agreement.
3.3 Force Majeure. All time records specified for performance of the
services rendered pursuant to this Agreement shall be extended because of any delays due to
n
is
unforeseeable causes beyond the control and without the fault or negligence of the Contractor,
including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods,
epidemic, quarantine restrictions, riots, strikes, freight embargos, acts of any governmental
agency other than City and unusually severe weather if the contractor shall, within ten (10) days
of the commencement of such delay notify the Contracting Officer in writing of the causes of the
delay. The Contracting Officer shall ascertain the facts and the extent of delay and extend the
time for performing the services for the period of the forced delay when and if, in his judgment,
such delay is justified, and the Contracting Officer's determination shall be final and conclusive
upon the parties to this Agreement.
3.3 Term. Unless earlier terminated in accordance with Section 7.8 of this
Agreement, this Agreement shall continue in full force and effect for two (2) years, from the date
of the execution of this Agreement.
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principals of Contractor are
hereby designated as being the principals and representatives of Contractor authorized to act in
its behalf with respect to work specified herein and make all decisions in connection therewith:
1. Gil Martinez
2. Kevin Varner
It is expressly understood that the experience, knowledge, capability and reputation of the
foregoing principals were a substantial inducement for City to enter into this Agreement.
Therefore, the foregoing principals shall be responsible during the term of the Agreement for
directing all activities of Contractor and devoting sufficient time to personally supervise the
services hereunder. The foregoing principals may not be changed by Contractor and no other
personnel may be assigned to perform the service required hereunder without the express written
approval of City.
4.2 Contract Officer. The Contract Officer shall be the Assistant Executive
Director or such other person as may be designated by the Executive Director of the Agency.
The Contract Officer has been authorized to act on behalf of the 'Agency for the purposes of this
Agreement. It shall be the Contractor's responsibility to assure that the contract Officer is kept
informed of the progress of the performance of the services and the contractor shall refer any
decisions which must be made by City to the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, capability and reputation of Contractor, its principals and employees were a
substantial inducement for the City to enter into this Agreement. Therefore, Contractor 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. In addition, neither this Agreement nor any
interest herein may be assigned or transferred, voluntarily or by operation of law, without the
prior written approval of City. All team members are listed and identified in Exhibit "C"
attached.
5
19
4.4 Independent Contractor. Neither the City nor any of its employees shall
have any control over the manner, mode or means by which Contractor, its agents or employees,
perform the services required herein, except as otherwise set forth. Contractor shall perform all
services required herein as an independent contractor with only such obligations as are consistent
with that role. Contractor shall not at any time or in any manner represent that it or any of its
agents or employees are agents or employees of City.
4.5 City Cooperation. The City shall provide Contractor with any plans,
publications, reports, statistics, records or other data or information pertinent to services to be
performed hereunder which are reasonably available to the City.
5.0 INSURANCE INDEMNIFICATION AND BONDS.
5.1 Insurance. The Contractor shall procure and maintain, at its cost, and
submit concurrently with its execution of the Agreement, public liability and property damage
insurance against all claims for injuries against persons or damages to property resulting from
Contractor's acts or omissions rising out of or related to Contractor's performance under this
Agreement. The insurance policy shall contain a severability of interest clause providing that the
coverage shall be primary for losses arising out of Contractor's performance hereunder and
neither the City nor its insurers shall be required to contribute to any such loss. A certificate
evidencing the foregoing and naming the City and its officers and employees as additional
insured shall be delivered to and approved by the City prior to commencement of the services
hereunder. The amount of insurance required hereunder shall be determined by the Contract
Sum in accordance with the following table:
Contract Sum
Coverage (personal injury/property damage)
Less than $50,000
$100,000 per individual; $300,000 per occurrence
$50,00043009000
$250,000 per individual; $500,000 per occurrence
Over $300,000
$500,000 per individual; $1,000,000 per occurrence
The Contractor shall also carry automobile liability insurance of $1,000,000 per accident
against all claims for injuries against persons or damages to property arising out of the use of any
automobile by the Contractor, its officers, any directly or indirectly employed by the Contractor,
any subcontractor, and agents or anyone for whose acts any of them may be liable, arising
directly or indirectly out of or related to Contractor's performance under this Agreement. The
term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer
designed for travel on public roads. The automobile insurance policy shall contain a severability
of interest clause providing that coverage shall be primary for losses arising out of Contractor's
performance hereunder and neither the City nor its insurers shall be required to contribute to
such loss. A certificate evidencing the foregoing and naming the City and its officers and
employees as additional insured shall be delivered to and approved by the City prior to
commencement of the services hereunder.
�1
�O
Contractor shall also carry Workers' Compensation Insurance in accordance with State
Workers' Compensation laws.
The Contractor shall procure professional errors and omissions liability insurance in the
amount acceptable to the City.
All insurance required by the Section shall be kept in effect during the term of this
Agreement and shall not be cancelable without thirty (30) days written notice of proposed
cancellation to City. The procuring of such insurance or the delivery of policies or certificates
evidencing the same shall not be construed as a limitation of Contractor's obligation to
indemnify the City, its officers, employees, contractors, subcontractors or agents.
5.2 Indemnification. The Contractor shall defend, indemnify and hold
harmless the City, its officers, officials, employees, representatives and agents, City indemnities,
from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and
expenses, including legal costs and attorneys' fees, for injury to or death of person(s), for
damage to property (including property owned by the City) ("claims") and for errors and
omissions committed by Contractor, its officers, anyone directly or indirectly employed by
Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable,
arising directly or indirectly out of or related to Contractor's performance under this Agreement,
except to the extent of such loss as may be caused by City's own active negligence, sole
negligence or willful misconduct, or that of its officers or employees.
In the event the City indemnities are made a party to any action, lawsuit, or other
adversarial proceeding in any way involving such Claims, Contractor shall provide a defense to
the City indemnities, or at the City's option, reimburse the City indemnities their costs of
defense, including reasonable attorney's fees, incurred in defense of such claim. In addition
contractor shall be obligated to promptly pay any final judgment or portion thereof rendered
against the City indemnities.
5.3 Remedies. In addition to any other remedies the City may have if
Contractor fails to provide or maintain any insurance policies or policy endorsements to the
extent and within the time herein required, the City, at its sole option:
1. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this
Agreement.
2. Order the Contractor to stop work under this Agreement and/or
withhold any payments(s) which become due to Contractor
hereunder until Contractor demonstrates compliance with the
requirements hereof.
3. Terminate the Agreement.
Exercise of any of the above remedies, however, is an alternative to any other remedies the City
may have and are not the exclusive remedies for Contractor's failure to maintain or secure .21
7
appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in
any way the extent to which Contractor may be held responsible for payments of damages to
person or property resulting from Contractor's or its subcontractors' performance of work under
this Agreement.
6.0 RECORDS AND REPORTS
6.1 Reports. Contractor 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.
6.2 Records. Contractor 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. Books and records pertaining to costs
shall be kept and prepared in accordance with generally accepted accounting principles. 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.
6.3 Ownership of Documents. Originals of all drawings, specifications,
reports, records, documents, and other materials, whether in hard copy or electronic form, which
are prepared by Contractor, its employees, subcontractors and agents in the performance of this
Agreement, shall be the property of City and shall be delivered to City upon the termination of
this Agreement or upon the earlier request of the Contract Officer, and Contractor shall have not
claim for further employment or additional compensation as a result of the exercise by City of its
full rights of ownership of the documents and materials hereunder. Contractor may retain copies
of such documents for its own use. Contractor shall ensure all subcontractors to assign City any
documents or materials prepared by them, and in the event Contractor fails to secure such
assignment, Contractor shall indemnify City for all damages suffered thereby.
6.4 Release of Documents. The drawings, specifications, reports, records,
documents and other materials prepared by Contractor in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract Officer
or as required by law. Contractor shall not disclose to any other private entity or person any
information regarding the activities of the City, except as required by law or as authorized by the
City.
7.0 ENFORCEMENT OF AGREEMENT
7.1 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 Contractor covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
2�
7.2 Disputes. In the event of any dispute arising under this Agreement, the
injured party shall notify the injuring party in writing of its contentions by submitting a claim
therefor. The injured party shall continue performing its obligation hereunder so long as the
injuring party commences to cure such default within ten (10) days of service of such notice and
completes the cure of such default within forty-five (45) days after service of the notice, or such
longer period as may be permitted by the Contract Officer; provided that if the default is an
immediate danger to the health, safety and general welfare, the City may take such immediate
action as the City deems warranted. Compliance with the provisions of this Section shall be a
condition precedent to termination of the Agreement for cause and to any legal action, and such
compliance shall not be a waiver of any parry's right to take legal action in the event that the
dispute is not cured, provided that nothing herein shall limit City's right to terminate this
Agreement without cause pursuant to Section 7.8.
7.3 Retention of Funds. City may withhold from any monies payable to
Contractor' sufficient funds to compensate City for any losses, costs, liabilities or damages it
reasonably believes were suffered by City due to the default of Contractor in the performance of
the services required by the Agreement.
7.4 Waiver. No delay or omission in the exercise of any right or remedy of a
nondefaulting party on any default shall impair such right or remedy or be construed as a waiver.
City's consent or approval of any act by Contractor requiring City's consent or approval shall not
be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of
Contractor. Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
7.6 Legal Action. In addition to any other rights or remedies, either party
may take legal action, at law or at equity, to cure, correct or remedy any default, to recover
damages for any default, to compel specific performance of this Agreement, to obtain injunctive
relief, or to obtain any other remedy consistent with the purposes of this Agreement.
7.7 Termination Prior to Expiration of Term. This Section shall govern
any termination of this Agreement, except as specifically provided in the following Section 7.8
for termination for cause. The City reserves the right to terminate this Agreement at any time,
with or without cause, upon thirty (30) days written notice to Contractor. Upon receipt of any
notice of termination, Contractor shall immediately cease all services hereunder except such as
may be specifically approved by the Contract Officer. Contractor shall be entitled to
compensation for all services rendered prior to receipt of the notice of termination and for any
services authorized by the Contract Officer thereafter in accordance with the Schedule of
Compensation (Exhibit `B") or such as may be approved by the Contract Officer, except as
provided in Section 7.3.
7.8 Termination for Default of Contractor. If termination is due to the
failure of the Contractor to fulfill its obligation under this Agreement, City may, after
compliance with the provision of Section 7.2, take over the work and prosecute the same to
completion by contract or otherwise, and the Contractor shall be liable to the extent that the total
cost for completion of the services required hereunder exceeds the compensation herein
stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City
may withhold any payments to the Contractor for the purpose of setoff or partial payment of the
amounts owned the City as previously stated in Section 7.3.
7.9 Attorneys' Fees. If either party commences an action against the other
party arising out of or in connections with this Agreement, the prevailing party shall be entitled
to recover reasonable attorneys' fees and costs of suit from the losing party.
8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non -liability of City Officers and Employees. No officer or employee
of the City shall be personally liable to the Contractor, or any successor in interest, in the event
of any default or breach by the City of for any amount which may become due to the Contractor
or to its successor, or for breach of any obligation of the terms of the Agreement.
8.2 Conflict of Interest. No officer or employee of the City shall have any
personal interest, direct or indirect, in this Agreement nor shall any 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 Contractor 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.
8.3 Covenant Against Discrimination. Contractor 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, disability or ancestry in the
performance of the Agreement. Contractor 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, physical disability, mental disability,
medical condition, age or ancestry.
9.0 MISCELLANEOUS PROVISIONS
9.1 Notice. Any notice, demand, request, consent, approval, communication
either party desires or is required to give to the other parties 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 9.1. 24
10
To Agency:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, California 92253
Attention: Mark Weiss
Assistant Executive Director
To Contractor:
GMA International
2700 Newport Blvd., Ste 190
Newport Beach, CA 92663
9.2 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.
9.3 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing signed by all parties.
9.4 Severability. In the event that any or more of the phrases, sentences,
clauses, paragraphs, or sections contained in the Agreement shall be declared invalid or
unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity
or unenforceable 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.
9.5 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.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
Dated:
LA QUINTA REDEVELOPMENT
AGENCY, a California municipal
corporation
51
EXECUTIVE DIRECTOR
"AGENCY"
11
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ATTEST:
Secretary
APPROVED AS TO FORM:
Agency Counsel
Dated:
GMA INTERNATIONAL
Lm
Name: Gil Martinez
Title: President
"CONTRACTOR"
12
zs
Exhibit " A "
Scope of Services
27
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EXHIBIT "A"
SCOPE OF SERVICES
Estimated
Budget Required
PHASE ONE: PREPARE WATER MANAGEMENT PLAN
Prepare a water management plan for the proposed SilverRock Ranch master
plan for development. This phase of work will involve a project water
demand evaluation, CVWD water demand coordination, development of
coordinated project lake/storm drainage plan and planning constraints as well
as project coordination relative to the water management plan.
Estimated Budget Required: $ 37,000.00
Deliverables:
• Water management plan report, to include water demand,
water supply options and a recommendation.
• Existing water well analysis summary report
• Graphic exhibits suitable for public presentation and
website purposes.
PHASE TWO: MASTER PLAN REFINEMENT IN COORDINATION
WITH THE GOLF COURSE ARCHITECT
Review and analysis of the golf course design and coordination of the
first golf course to be constructed with the golf course Architect during
the preparation of the final golf course design. Based on our current
understanding, this course is being positioned for tournament play. GMA's
involvement during this phase of work will ensure that the final golf
course design will be compatible and/or comply with the master plan
recently approved by the Redevelopment Agency.
Estimated Budget Required: $ 159000.00
Deliverables:
• Final Golf course design incorporated into the SilverRock
Master Plan
• Update statistical information.
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PHASE THREE: PREPARE CONCEPTUAL GRADING AND
DRAINAGE PLAN
Prepare a conceptual grading and drainage plan for the entire site in
coordination with the project Engineer(s), the project golf course
Architect(s), City staff members and Consultant team members.
Estimated Budget Required:
Deliverables:
• Conceptual grading and drainage plan prepared at 1 "=200' scale
• Dirt quantities (dirt balance) analysis prepared at 1 "= 200' scale
PHASE FOUR: PREPARE PERIMETER CONCEPTUAL LANDSCAPE
PLAN
Prepare a perimeter conceptual landscape plan at 1 "=20' scale of the following
areas along:
1. 52nd Avenue
2. Jefferson Street
3. 54th Avenue
This phase of work will also include preliminary elevation sketches so as to
facilitate City review and evaluation of the proposed landscape treatment,
as well as, grading and overall improvement concept.
Deliverables:
$ 159500.00
Estimated Budget Required: $ 159500.00
• Conceptual plans and for the entire parkway areas along 52nd Avenue,
Jefferson Street and 54th Avenue.
• Cross-section and elevation sketches of various proposed treatments
along the parkway/corridor area depicting the proposed landscape
and grading improvements.
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PHASE FIVE: PREPARE PROJECT ENTRY CONCEPT PLANS
Prepare project entry concept plans and elevation sketches, based on the preparation
and selection of possible preliminary thematic options, of the following entries:
1. 52nd Avenue across from the Citrus project entry area
2. Jefferson Street across from the Hideaway
pro ect entry
3. 54 Avenue generally across from the PGA
West maintenance facility area.
Estimated Budget Required:
Deliverables:
• Conceptual designs of the SilverRock project entries at
52nd Avenue, Jefferson Street and 54`h Avenue.
• Conceptual cross -sections and elevation sketches of the entries.
• General preliminary construction cost estimate of each entry.
PHASE SIX: PREPARE DETAIL DESIGN FOR THE PROJECT
ENTRY AT 52 nd AVENUE
Prepare a detailed/schematic design/plan for the project entry at 52nd Avenue
across from the Citrus project entry area. This phase of work will also
include preparation of a preliminary cost estimate. The graphics of the
schematic design and the preliminary cost estimates will be prepared suitable
for City decision -making purposes.
Estimated Budget Required:
Deliverables:
• Detailed/dimensioned schematic design of the project entry
at 52nd Street across from the Citrus project entry area.
• Detailed and dimensional plan view cross -sections, elevation
and materials specification of the entry.
• Preliminary Cost Estimate
$ 149300.00
$ 109300.00
t)
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PHASE SEVEN: WEBSITE MAINTENANCE
On -going Website Maintenance for hosting, improving design capacity and
creating additional storage. This phase of work will also include training and
transition of the website maintenance activities to the appropriate City staff
members.
Estimated Budget Required: $ 129000.00
Deliverables:
• On -going website updates and website maintenance.
PHASE EIGHT: MISCELLANEOUS PLANNING SERVICES
Provide miscellaneous planning services on an as -needed, as -requested basis
utilizing the enclosed hourly rate schedule.
Estimated Budget Required: $139000.00
PHASE NINE: COORDINATION
Coordination with City Staff, attendance at Redevelopment Agency Meetings.
Estimated Budget Required: $ 129000.00
Deliverables:
• Meetings, as required
Total
$1449600.00
31
17
Exhibit "B"
Schedule of Compensation
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EXHIBIT "B"
Schedule of Compensation
Reimbursable Expenses
For your budgetary purposes, we estimate reimbursable expenses to be approximately
$25,000.00. This should cover blueprinting, digital scanning, cellular telephone and
communication costs, printing and plotting, Federal Express/courier services, as well as travel -
related expenses. We recommend that the City engage the services of a reproduction company
for normal reprographic/copying/scanning/plotting needs for this project and to be charged
directly to the Client. All other project -related expenses will be invoiced with a 10%
administrative handling fee. Mileage will be billed at thirty-five cents ($.35) per mile.
Following is a current schedule of rates charged by GMA for authorized extra work or services
contracted on an hourly (time and materials) basis effective January 2002:
President
Principal (Vice President)
Principal
Senior Planner/Landscape Architect (Sr. Associate)
Planner/Landscape Architect (Associate)
Project Manager
Project Planner/Designer
CAD Operator
Graphic Designer/Planning Analyst
Draftsperson/Professional Staff
Administrative Support/Work Processing
$200.00/hour
$150.00/hour
$120.00/hour
$ 90.00/hour
$ 65.00/hour
$ 5 5.00/hour
$ 45.00/hour
$ 50.00/hour
$ 45.00/hour
$ 45.00/hour
$ 3 5.00/hour
34
20
Exhibit "C"
Team Members
35�
21
EXHIBIT "C"
Team Members
The GMA master planning team will consist of GMA International as the Primary
Consultant/Team Leader, two Consultant Team Members and Sub-Consultant/Advisory Team
Members on an as -needed basis, as follows:
Primary Consultant Team Leader
• GMA International
• Gil Martinez, President
• Steve Garcia, Vice President
• Carol Ackerman, Vice President
• Kevin Varner, Senior Planner
• Kevin Korczyk, Project Manager
Consultant Team
• PACE Engineering
• Johan Perslow
• Mark Krebs
• Cory Severson
• MDS Consulting
• Chris Bergh
• Stan Morse
- Project Management
- Resort Master Planners
- Landscape Architects and Site Planners
- Environmental Analysts
- Entitlement Services
- Website Maintenance
- Watershed Management & Planning/
Storm Water Quality
- River Engineering
- Land Development
- Wastewater/Water Reclamation
Potable Water
- Lake Systems/Water Features/Pools
- Regulatory Permitting
- Wetland and Stream Restoration
- Planners
- Engineers
- Surveyors
22
36
Exhibit D 31
Insurance Information
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23
GER°TIFJ A."TE OF:
. ..�,.z.
P D cart
SHERMAN / PARENT INSURANCE BROKERS, LLC
4770 CAMPUS DRIVE SUITE 100
NEWPORT BEACH, CA 92660
(949) 660-3700
FAX (949) 660-3777
MART`INEZ DESIGN ASSOCIATES
DBA: GMA
2700 NEWPORT BLVD #190
f NEWPORT BEACH, CA 92663
THIS IS TO(
NOTWATHST
PERTAIN, TF
it
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RtC.E:.. ;ISSUE�D/kTE
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND
CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE
i DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
I POLICIES BELOW.
COMPANY
A NORTHERN INSURANCE COMPANY OF NEW YORK
COMPANY
B GREAT AMERICAN ASSURANCE COMPANY
COMPANY
C
COMPANY
D
THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURES
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WI
LANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
Z BY PAID CLAIMS.
JE FOR THE POLICY PERIOD INDICATED,
TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY
AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY
0 TYPE OF INSURANCE
TR
POLICY NUMBER
POLICY EFFECTIVE
DATE (MWDDIYY)
POLICY EXPIRATION
DATE (MMIDD/YY)
LIMITS
GENERAL, LIABILITY
GENERAL AGGREGATE
s 2,000,000
PRODUCTS-COMP/OP AGG.
s 21000,000
COMMERCK GENERAL LIABILITY
' PAS35419283
AUG 24 02
AUG 24 03
PERSONAL 3 ADV INJURY
S 1 #000,000
LANg MAD@ ® OCCUR.
A OIIMIER'S & CONTRACTOR'S PROT.
EACH OCCURRENCE
$ 1,00.0,000
FIRE DAMAGE(Any One Firms)
S 1,000,000
I
MED. EXPENSECWy n* PwsWl
t 1010Q0
AUTOMOBILE LIABILITY
ANY AUTO
PAS35419283
AUG 24 02
AUG 24 03
COMBINED SINGLE LIMIT
S 1,000,000
80DILY INJURY
(Per Person)
$
1
ALL OWNED AUTOS
SCHEDULED AUTOS
BODILY INJURY
(Por ARcideM)
S
A HIRED AUTOS
NON -OWNED AUTOS
PROPERTY DAMAGE
:
GARAGE LIABILITY
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AUTO ONLY - EA ACCIDENT
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UMBRELLA FORM
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WORKER'S COMPENSATION AND
EMPLOYERS' LIABILITY
STATUTORY tIMITs
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THE PROPRIETOR/ INCL
PARTNERSIEXECUTIVE
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DISEASE*.ACH EMPL?5YEE
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'OTHER EDN320959702 JUL 5 02 JUL-5 03
L ITS:
$500,000 / $1,000,000
DEDUCTIBLE:
PROFESSIONAL LIABILITY - ARCHITECTS / ENGINEERS'
CLAIMS MADE - RETROACTIVE DATE 7/5/2000
$5,000
LJCQ,.,fvr 4 1Vn yr Vr .. .�.._. _ _..._----- -- --- - -- -----
'CITY OF LA QUINTA, AND ITS OFFICERS AND. EMPLOYEES ARE NAMED AS ADDITIONAL INSURED AS RESPECTS
TO GENERAL LIABILITY.
-RE:
CERTIFICATE HOLDER CANCELLATION .
CITY OF LA Q�iiN.1•A SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED
30BEFORE THE
78-495 CALLS AMPICO EXPIRATION,
it ENI NOTICE TO THTE E CERTIFICATE OLDERUWG PANY WILL NAMED TO THE LEFT , DAYS
LA QUINTA, CA 92253
1"AY NOTICE OF CANCELLATION APPLIES FOR NON-PAYMENT OF PREM M
fi
24
Exhibit "E"
Scheduling Information
39
25-
EXHIBIT "E"
Schedule Requirements
Estimated
Time Required
PHASE ONE: PREPARE WATER MANAGEMENT PLAN 2 Months
PHASE TWO: FINALIZE GOLF COURSE PLAN 6 Months
PHASE THREE: PREPARE CONCEPTUAL GRADING AND
DRAINAGE PLAN 1 Month
PHASE FOUR: PREPARE PERIMETER CONCEPTUAL LANDSCAPE
PLAN 1 Month
PHASE FIVE: PREPARE PROJECT ENTRY CONCEPTUAL PLAN
PHASE SIX: PREPARE DETAILED PLAN FOR THE PROJECT
ENTRY AT 52 nd AVENUE.
PHASE SEVEN: WEBSITE MAINTENANCE
PHASE EIGHT: MISCELLANEOUS PLANNING SERVICES
PHASE EIGHT: COORDINATION
Total Estimated Time Required
1 Month
1 Month
6 Months
6 Months
6 to 9 Months,
Ongoing, As
Required
6 to 9 Months
* Note: Unforeseeable circumstances such as socio-political issues may affect the schedule.
COUNCIL/RDA MEETING DATE: June 17, 2003
ITEM TITLE:
Adoption of a Resolution Approving the Agency's
Payment for the Purchase and Sale of Real Property
Between the La Quinta Redevelopment Agency
("Agency) and William D. Calkins and Lynn R. Kunkle,
Co -Conservators of the Estate of Charles Brian
Murphy, as to an Undivided 25% Interest; Lynn R.
Kunkle, an Unmarried Man, as to an Undivided 25%
Interest; and AM Partnership, a California General
Partnership, as to an Undivided 50% Interest
("Seller") for the Property Located Along the East Line
of Avenida Montezuma
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving the appropriation of funds
for the City to purchase with proceeds received from the Project Area No. 1 Series 2002
Bond Issuance and authorize the Executive Director to execute the necessary
documents to fund up to $310,000 in acquisition expenditures from Project Area No. 1.
FISCAL IMPLICATIONS:
The Agreement will result in the expenditure of approximately $310,000 in
redevelopment funds for the acquisition of the Property. The purchase price is
$290,000 and the remaining amount of $20,000 is estimated for escrow, title, staff,
consultants and other miscellaneous acquisition expenses. Acquisition costs will be
funded through the Project Area No. 1 Series 2002 Bond Issuance (Account 405-000-
300-290), which identifies expenditure for open space in Project Area No. 1.
Due to funding through the Agency, the acquisition expenditure does not impact the City
budget. No specific allocation has been discussed or identified for future improvements
on the proposed passive -park site.
AI
S:\CityMgr\STAFF REPORTS ONLY\CC11 RDA.doc
BACKGROUND AND OVERVIEW:
The City is proposing to acquire a 19.17 acre site that consists of three parcels owned
by William D. Calkins and Lynn R. Kunkle, Co -Conservators of the Estate of Charles
Brian Murphy, as to an undivided 25% interest; Lynn R. Kunkle, an unmarried man, as
to an undivided 25% interest; and AM Partnership, a California General Partnership, as
to an undivided 50% interest, collectively "Seller." The acreage is currently
undeveloped and could provide open space for the City in the west side of the Cove.
In May 2002 the Agency Board reviewed a proposal to sell the 19.17 acres from the
Seller. The Seller originally acquired the acreage with the intent of developing large
custom estates. The Seller contemplated rezoning the property from the designated
park and recreations uses to accommodate the desired custom estate development.
However, prior to the Seller formally submitting a request for change in zoning the
surrounding property owners submitted a petition opposing the proposed rezoning and
custom estate development. Subsequently, the Seller decided to table the matter.
Due to a change in the Seller's development plans the Seller offered the Agency an
opportunity to acquire the site for $295,000. The Agency Board authorized Staff to
enter into negotiations with the Seller to acquire the parcels. A price of $290,000 was
negotiated between the Seller and the Agency. Unfortunately, the acquisition could not
close earlier due to a number of title problems that occurred with the ownership. The
primary title issue was due to the control over a portion of the fee ownership through a
conservatorship, which resulted in the transaction requiring approval by the local court
system. This process is now complete, and the City and Sellers may move forward with
closing the transaction.
Acquisition of these parcels is consistent with the Agency Board direction and the City's
effort to increase passive -park and open space uses in the Cove. Acquisition by the
City for passive -park and open space uses would also serve to relieve some of the
Cove resident concerns regarding development in the area. Park and open space
deficiencies were identified as one of the blighting conditions that were present in
Project Area No. 1. Acquisition of these parcels for passive -park and open space
assists in fulfilling the needs of Project Area No. 1 and consequently, funding from this
acquisition will be appropriated from the Project Area No. 1 Series 2002 Bond Issuance.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Adopt a Resolution of the Redevelopment Agency approving the appropriation of
funds for the City to purchase with proceeds received from the Project Area No. 1
Series 2002 Bond Issuance and authorize the Executive Director to execute the
necessary documents to fund up to $310,000 in acquisition expenditures from
Project Area No. 1; or
2. Do not adopt a Resolution of the Redevelopment Agency approving the
appropriation of funds for this acquisition; or 42
2-
S:\CityMgr\STAFF REPORTS ONLY\CC11 RDA.doc
3. Provide staff with alternative direction.
Respectfully s
r Director
Approved for Submission by:
Thomas P. Genovese, Executive Director
43
S:\CityMgr\STAFF REPORTS ONLY\CC11 RDA.doc
RESOLUTION RA 2003-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE AGENCY'S PAYMENT FOR
CERTAIN PUBLICLY OWNED LAND
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a
public body, corporate and politic organized and existing under the Community
Redevelopment Law (California Health and Safety Code § 33000, et seq.) to carry
out the purposes of redevelopment in the City of La Quinta ("City"); and
WHEREAS, the Agency is engaged in activities necessary to execute
and implement the Redevelopment Plan for the La Quinta Redevelopment Project
No. 1 ("Redevelopment Plan" or "Project Area," as applicable); and
WHEREAS, the City has entered into, or is about to enter into, that
certain Agreement for Purchase and Sale of Real Property Located Along the East
Line of Avenida Montezuma (APNs 773-245-002, 774-020-003, and 773-311-
027), City of La Quinta, California (the "Agreement"), with William D. Calkins and
Lynn R. Kunkle, co -conservators of the Estate of Charles Brian Murphy, as to an
undivided 25 % interest; Lynn R. Kunkle, an unmarried man, as to an undivided
25 % interest; and AM Partnership, a California general partnership, as to an
undivided 50% interest (collectively, "Seller"), pursuant to which the City has
agreed to purchase certain real property located within the Project Area (the
"Property") from Seller, for the purchase price of Two Hundred Ninety Thousand
Dollars ($290,000) (the "Purchase Price"). City intends to develop and maintain
the Property as a public park (the "Park"); and
WHEREAS, on the 6th day of May, 2003, the La Quinta City Council
(the "City Council") approved the 2003-2004 Economic Development Plan which
includes implementation policies supporting enhancement of recreational
opportunities; and
WHEREAS, the lack of recreational facilities was documented as one
of the conditions of blight that justified the formation of the Project Area, as cited
in the October 1983 Report to the La Quinta City Council on the Proposed
Redevelopment Plan for the Project Area; and
WHEREAS, Section 518 of the Redevelopment Plan authorizes the
Agency to purchase and improve property for park facilities; and
WHEREAS, purchasing the Property would afford the Agency the
opportunity to address some of the aforementioned conditions of blight; and
MAI
G:\WPDOCS\A&M Park\Agency Reso.DOC 4
Resolution RA 2003-
Montezuma Park Purchase
Adopted: June 17, 2003
WHEREAS, there is inadequate funding within the City's General Fund
or from other sources to acquire the Property; and
WHEREAS, the Agency's purchase of the Property for the City's
subsequent development and maintenance of a Park is in accordance with the
Redevelopment Plan and is of benefit to the Project Area.
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
Section 1. That the above recitals are true and correct and incorporated
herein.
Section 2. That the Agency does hereby find and determine as follows:
a. That the Agency's funding of. the purchase of the Property is of
benefit to the Project Area and to the immediate neighborhood of the Property, in
that the Park to be developed thereon will be available for use by residents of the
Project Area and of the immediate neighborhood.
b. That no other reasonable means of financing the purchase of
the Property, which is publicly owned land, is available to the community for the
following reasons: (i) City monies are dedicated to critical police, fire, and other
necessary expenditures, including other capital improvement projects; (ii) the only
practical means of paying for the Property is to use Agency funding; (iii) without
Agency funding the City would be unable to purchase the Property and thereafter
develop and maintain the Park, all to the detriment of the redevelopment of the
Project Area.
C. That the Agency's payment identified herein will assist in the
elimination of blighting conditions in the Project Area in that deficient recreational
facilities is a blighting condition addressed by the Agency's payment.
d. That the Agency's payment identified herein is consistent with
Agency's adopted Implementation Plan, in that improving public facilities in and
benefiting the Project Area is a priority identified in the Implementation Plan.
e. That the Agency's payment for the Property is necessary to
effectuate the purposes of the Redevelopment Plan.
Section 3. The Agency's payment for the Property is hereby approved.
4�.
GAWPDOCS\A&M Park\Agency Reso.DOC ''
Resolution RA 2003-
Montezuma Park Purchase
Adopted: June 17, 2003
Section 4. The Executive Director is authorized and directed to take such
other and further actions as may be necessary and proper to effect the Agency's
payment for the Property.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Redevelopment Agency of the City of La Quinta, California, held this 17th day of
June, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
I tKKY HtNUtKSUN, Agency Lnair
City of La Quinta, California
ATTEST:
JUNt 5. UKttK, Agency Secretary
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
City of La Quinta, California
2 .
7
G:\WPDOCS\A&M Park\Agency Reso.DOC
COUNCIL/RDA MEETING DATE: June 17, 2003
ITEM TITLE:
Consideration of a Resolution Adopting the
Investment Policy of the Redevelopment Agency
for Fiscal Year 2003/2004
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SES
SION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving the Investment Policy of
the City of La Quinta for Fiscal Year 2003/2004.
SEE CITY COUNCIL STAFF REPORT
4�
RESOLUTION NO. RA 2003 -
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA APPROVING AND
ADOPTING THE AMENDED INVESTMENT POLICY FOR
FISCAL YEAR 2003/2004
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS, the primary objectives, in order of priority, of the City of La
Quinta's investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently li uid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio is
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City
of La Quinta to adopt the 2003/2004 Fiscal Year Investment Policy (Exhibit A).
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this day of ,
2003 by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
JUNE S. GREEK, Secretary
City of La Quinta, California
APPROVED AS TO FORM:
KATHY JENSON, City Attorney
City of La Quinta, California
Exhibit A
(TO BE ATTACHED)
N
c&il 4 44"
rmixrii./RDA MEETING DATE: June 17, 2003
Consideration of a Request to Acquire a
Single Family Home Located at 53-200
Avenida Herrera
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the acquisition of the property located at 53-200 Avenida Herrera (the
"Property"), authorize the Executive Director to acquire, rehabilitate, and resell the
Property to another low income household, and authorize Rosenow Spevacek
Group ("RSG") to act on the Agency's behalf at the Trustee's Sale.
FISCAL IMPLICATIONS:
To purchase this Property at the Trustee's Sale will require an expenditure from the
Project Area No. 1 Low Mod Housing Fund in an amount not to exceed $220,000.
Legal fees, rehabilitation costs and resale expenses are not expected to exceed
$35,000 of this amount. If the Agency Board approved the acquisition of this
house, an appropriation is not needed as staff will use a prior appropriation
requested and approved by the Agency on March 4, 2003. The prior funds were
not expended as the owner was able to cure their loan.
BACKGROUND AND OVERVIEW:
Staff has been advised that on July 1, 2003, a single family home located at 53-
200 Avenida Herrera will be sold at a Trustee's Foreclosure Sale. This house was
sold to the current owner in March 2002, with a second trust deed amount of
$65,000 provided to a low income household as part of the La Quinta Housing
Program. The current outstanding loan balance of the first trust deed, including
foreclosure costs, is anticipated to be $85,000. This figure plus the second trust
deed of $65,000 represents total encumbrances of $150,000 against the property.
The additional $35,000 is being requested in the event other bidders are present
who may bid the price over the total encumbrances because the market value of
properties in the Cove area has increased significantly in recent months. This home
was built in 2002 and comps of recent sales of properties of a similar age and size
indicate a market value of approximately $180,000. The encumbrances of
$150,000, plus the $35,000 excess, provides RSG the ability to bid up to
$185,000, but only if conditions at the Trustee's Sale warrant. Based on the 2003
affordable housing cost allowances, the Agency can anticipate the ability to resell
this property to another low income household, who would assume the existing
second trust deed loan, for approximately $165,000, of which the Agency's total
out of pocket cost would be approximately $120,000 (pay off the first trust deed
of $85,000 plus $35,000 in rehabilitation and resale costs).
In order to protect the Agency's second trust deed investment of $65,000 and
maintain the affordability covenant, the Agency would have to purchase the
Property at the Trustee's foreclosure sale. The Property is subject to public bid and
will be sold to the highest bidder. If the Agency does not elect to purchase the
Property, then the low income affordability covenant would be extinguished. If the
Agency is not the successful bidder, any amount less than $150,000 being offered
for the Property will cause a loss of the Agency's second trust deed and a loss of a
qualifying unit for its inclusionary housing requirement. Upon acquisition of the
Property, RSG will coordinate with the Agency attorney to evict the occupants.
FINDINGS AND ALTERNATIVES:
1. Approve the acquisition of the property located at 53-200 Avenida Herrera,
authorize the Executive Director to acquire, rehabilitate, and resell the Property
to another low income household and authorize Rosenow Spevacek Group
("RSG") to act on the Agency's behalf at the Trustee Sale; or
2. Do not approve the acquisition of the property; or
3. Provide staff with alternative direction.
Respectfully submitted,
hrector
Approved for submission by:
l '
Thomas P. Genovese, Executive Director
4 Sep Qabtraj
F OF 'T�ti9
COUNCIL/RDA MEETING DATE: ,tune 17, 2003 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE:
CONSENT CALENDAR:
Discussion of Business Plan for SilverRock Ranch /
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
As deemed appropriate by the Redevelopment Agency Board.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
The Agency has received numerous inquiries from resort developers and development
companies regarding interest in forming partnerships to develop the golf and resort
components associated with SilverRock Ranch property. During a previous discussion
with the Agency Board, staff outlined options the Board could consider regarding
partnership ventures. In response, the Board directed staff to develop a discussion
paper for Agency Board consideration. This report transmits those materials.
In considering development structure options, the following items should be
considered:
• The source of Agency acquisition and development funds.
• The legal parameters for private sector participation in the development and
operations of SilverRock Ranch.
• Partnership structures used by both public agencies and private firms in
facilitating resort and golf community development.
51
In preparing this report, staff consulted with Agency legal and bond counsels, other
California Redevelopment Agencies, and private resort and golf community
developers.
Agency Funding Sources
To date, the Agency has expended approximately $43.0 million to purchase the
property and prepare the Master Plan and associated studies, and has reserved an
additional $21.0 million in the Capital Improvement Program to fund construction of
the first golf course, the driving/practice range, the temporary clubhouse, and related
on -and off -site improvements. All of these funds were derived from proceeds
generated by the Series 2001 and 2002 Project No. 1 tax-exempt bond issues.
Since 1984, the Agency has had the opportunity to issue bonds that are repaid from
Project No. 1 tax increment revenue. Federal and state laws provide that the Agency
may issue two types of tax allocation bonds:
• Tax exempt bonds wherein. the interest earnings bond holders receive are
exempt from federal and state income taxes; these bonds must fund activities
that serve a public purpose and benefit governmental agencies such as:
Constructing public infrastructure and facilities such as flood control
channels, streets, parks and public buildings
Funding projects and programs that provide affordable housing
Transferring property at zero value to facilitate redevelopment.
• Taxable bonds wherein the interest earnings bond holders receive are taxed at
both the federal and state level; public agencies issue these when the proceeds
are used to benefit private, non -government activities such as:
Selling or leasing property to private or non -governmental (non-profit
organizations fit the latter category) entities that will generate a profit
from using the property
Offering preferred use of a publicly owned facility to private or non-
governmental entities that will generate a profit from using the property
Permitting private or non -governmental entities to operate a profit
generating operation within a publicly owned facility.
The interest rate spread between tax exempt and taxable bonds has historically been
2 to 4 percent, depending on market conditions. The Agency has used tax-exempt
52
2
bonds because the proceeds have been used for public purposes and the interest costs
have been lower.
Federal tax laws provide that up to 10 percent of the proceeds from a tax exempt
bond may be used for a private activity, wherein a private business or a non-
governmental agency could benefit or profit from the expenditure tax exempt bond
proceeds. Applying this provision to SilverRock Ranch, a total of $64.0 million of tax
exempt bond proceeds have been, or are slated to be, used to acquire the land and
develop the first golf course; $6.4 million of this amount may be used to underwrite
a private activity.
Applicability
How is this applicable to the development and operation of SilverRock Ranch? The tax
exempt financing restricts the Agency in the following manner:
• Prohibits the Agency from selling or leasing the land to a private entity at a
value greater than zero.
• Limits the Agency's ability to offer preferred tee times to hotels.
• Limits the Agency's ability to allow tournament use of the golf courses.
• Prohibits the Agency from entering into joint venture partnerships with private
entities where the private entity would participate in net profits.
• Requires the use of qualified management contracts wherein a private or non-
governmental entity may receive a fixed fee for services, plus one-time incentive
awards based upon gross revenue; qualified management contracts cannot be
longer than 20 years, with 5-year contracts being the norm.
Options
The Agency does have options available that facilitate greater flexibility regarding the
development and operations of SilverRock Ranch:
• Issue taxable bonds as part of the next Project No. 1 bond issue. The bond
financing team estimates that Project No. 1 has the capacity to support $12 to
$17 million in taxable bonds. Current interest rates for taxable bonds are 5.1
to 5.5 percent; this compares to the 5.16 percent net interest rate the Agency
is currently paying on the Series 2001 and 2002 tax-exempt bonds. Tax
exempt bond rates are currently 4.5 to 5.0 percent, a spread of less than one
percent compared to the historical spread of 2.0 to 4.0 percent.
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• Use taxable bond proceeds to reimburse the tax-exempt bond account for the
land acquisition costs related to the resort, casitas, retail and clubhouse uses.
Based upon the acquisition price of $80,952 per acre and the approximately
75 acres of land area designated for these uses per the Master Plan,
$6,071,428 would be needed to reimburse the tax exempt bond account.
• Use the remaining taxable bond proceeds to fund a portion of the golf course,
temporary clubhouse, and driving range/practice facility costs. This would free
a like amount of tax-exempt bond proceeds reserved in the CIP for other non -
golf projects.
• As the details surface regarding the number of preferred tee times and the
desired tournament use, determine the impact on the tax exempt status of the
remaining tax exempt bonds and reimburse the tax exempt bond fund with
taxable bond proceeds.
Given the total acquisition and development costs associated with the SilverRock
Ranch, the Agency does not have the financial capacity, nor would it be cost
effective, to retire the total tax-exempt bond funding with taxable bond proceeds.
Since providing affordable public golf to La Quinta residents is a prime goal for the
SilverRock Ranch, there is also no need to fully retire the tax-exempt bonds with
taxable bonds. Since Project No. 1 has the capacity to support additional taxable and
tax exempt financings, the Agency does not have to sell residential property to raise
capital for project development.
Legal Parameters For Private Sector Participation
In addition to the requirements the source of Agency funds impose on development
and operation activities, the Agency has other requirements it must follow as a public
corporation. These entail the following:
Professional Services
• A request for proposals (RFP) or competitive selection process is required for
all contracts in excess of $25,000. There are exceptions to this requirement
under certain circumstances (emergencies and extensions to existing contracts,
for example).
• If tax exempt bond proceeds are used to build facilities that a private or non-
governmental entity will operate, a qualified management contract is required
that limits compensation to direct costs, one time incentive payments based
upon gross receipts, and no participation in the net profits generated by
operations performed on behalf of the public agency.
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• All construction contracts must be competitively bid. Bid specifications must
be prepared that itemize the desired improvements for each aspect of the on -
and off -site infrastructure improvements, the golf course, clubhouse, and lake
and landscaping features.
• Turnkey or design build approaches may be used; however, the Agency must
demonstrate that competitive bidding was used to select the firm ultimately
awarded the contract.
• All contractors must pay prevailing wages to all construction workers. As a
part of this requirement, the prevailing wages paid in the Riverside County
market area for each trade must be identified, and pay records must be kept for
each employee for the duration of the contract.
Land Disposition
• The Agency may sell the non -golf course parcels at fair market value. If it can
be factually justified that a public purpose is being served, the Agency may sell
property for less than fair market value. If the Agency sells land for less than
fair market value, the payment of prevailing wages will be required.
• Both the City and Agency may enter into long-term leases involving land,
buildings, and other public facilities. Redevelopment agencies may enter into
99-year leases and cities may enter into 55-year leases. The Agency may
originate a lease that is subsequently assigned to the City in order that the City
benefits from the lease income. If land or facilities are leased at a rate that is
less than fair market value, then it must be factually justified as to the public
purpose that is being served.
• The City or Agency may facilitate the creation of an economic development
corporation that could be charged with the responsibility of securing non -tax
increment financing, building and owning hotel and other non-public uses. The
corporation can enter into agreements with private operators who would run the
hotel, resort, restaurant, and retail enterprises.
Commonly Used Structures for Resort Development
There are three basic structures that private landowners and public agencies use for
land development:
• Select individual developers who develop specific sites
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• Select a master developer who purchases or leases the property and develops
all sites
• Enter into a joint venture partnership with one developer who provides an
equity contribution and participates in net profits.
The basic parameters of these structures are as follows:
Individual Developers
Using this approach, the Agency would contract with individual developers for one or
more of the non -golf course parcels. The Agency would build the golf courses, and
then sell or lease the resort, retail and casitas parcels as market demand supported the
best transaction. The development entity would then be responsible for constructing
the improvements and operating the facilities. Depending on the strength of the
market, the Agency could structure the transaction wherein it participated in net
profits or in the case of leases, a percentage of gross receipts after reasonable
expenses. The Agency would need to establish specific development and operational
parameters for each site to ensure that the development and subsequent operations
adhered to the community's expectations for SilverRock Ranch, and that the
development generated the greatest sales and transient occupancy tax returns. This
approach affords the opportunity to have more individuality for each development
phase, would permit more than one development entity to participate in the
development program, and would spread the risk among more than one entity. A RFP
or request for qualifications could be used to solicit development proposals or
developers.
Master Developer
The second structure entails selecting a master developer through either a RFP or
through review of qualifications. The master developer would then develop all of the
uses on site, including the golf courses, or just the non -golf uses. The non -golf sites
could either be sold or leased, depending on market conditions and availability of
financing. This approach offers greater potential for uniform quality among the various
venues and for better integration of uses. The potential drawbacks entail the risk of
one theme of character becoming monotonous throughout the development and one
entity gaining too much control over the resort and golf venues.
Joint Venture Partners
A third common form entails forming a joint venture partnership with a development
entity that was selected either through an RFP or request for qualifications process.
The partner developer would assume responsibility for managing operations, marketing
and developing the property, and participating in net profits. Further, this arrangement
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could be structured wherein the partner would be required to make an equity
contribution through a combination of cash and/or services in lieu of cash. The
amount of control the partners would have over development and operational activities
would be negotiated. Finally, a joint venture relationship would need to be established
for a 10 to 15 year period in order for'the private entity to recoup sufficient returns on
its capital. Discussions with developers who proposed joint venture relationships
indicate that the cost of their capital typically ran from 8 to 12 percent, with their
equity investors seeking 15 to 30 percent returns.
All of these structures have consequences regarding the amount of tax-exempt and
taxable financing the Agency could use. The individual developer and master
developer options would require that only the property offered for sale or lease be
initially purchased with taxable funds. The joint venture partnership would require that
a majority of funding be taxable.
Also potentially impacting the development structure are the KSL restrictions that run
for 6 more years. These restrictions entail the following:
• A hotel room limit of 250 rooms.
• A condo hotel room limit of 500 rooms.
• A conference facility limit of 10,000 square feet.
• A hotel room rate limit of 7 percent of the published rates at the La Quinta
Resort and Club.
• The requirement that KSL has equal opportunity to compete for the
management of the condo hotel units.
The above information is designed to stimulate discussion regarding development
options. Upon Agency Board input and direction, the staff can then refine these
approaches and develop specific policies and implementation actions to guide
upcoming development proposal solicitations and negotiations.
The next steps the Agency Board may wish to consider entail:
1. Continue to position SilverRock Ranch for resort development by completing
the design activities associated with the first golf course; rough grading the
building sites for the non -golf uses; building the first golf course, driving range and
temporary clubhouse; and constructing the on -and off -site infrastructure
improvements required to support the first golf course and the resort uses.
2. Sell taxable bonds to enhance the Agency's flexibility when structuring resort
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development transactions, and preferred tee time and tournament use activities
involving the first golf course. This action would also allow the Agency to
capitalize on historically low bond interest rates.
3. Distribute the SilverRock Ranch concept plan and "story books" to resort
developers, operators and other interested parties to solicit their interest in
developing one or more of the resort components.
4. Once proposals are received, determine the land. development structure that
achieves the Agency's goal of developing a golf resort that embodies the highest
degree of quality, maximizes City/Agency financial returns and provides affordable
golf, recreation and cultural opportunities for La Quinta residents.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1 . Review and consider the Business Plan strategies and suggested "next steps"
contained within this report; or
2. Provide staff with alternative direction.
Respectfully submitted,
Mark Weiss, Assistant Executive Director
Approved for submission by:
Thomas P. Genovese, Executive Director
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