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2003 11 18 RDARedevelopment Agency Agendas are Available on the City's Web Page @ www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, November 18, 2003 - 2:00 P.M. Beginning Resolution No. RA 2003-20 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, MARK WEISS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL Redevelopment Agency Agenda 1 November 18, 2003 I PROPERTY LOCATED WEST OF THE ALL-AMERICAN CANAL ADJACENT TO THE SANTA ROSA MOUNTAINS. PROPERTY OWNER/NEGOTIATOR: LARRY LICHLITER, KSL 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 SPECIAL MEETING OF OCTOBER 16, 2003 2. APPROVAL OF MINUTES OF NOVEMBER 4, 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 NOVEMBER 18, 2003. 2. TRANSMITTAL OF TREASURER'S REPORT AS OF SEPTEMBER 30, 2003. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED SEPTEMBER 30, 2003. 4. APPROVAL OF NOTICE OF TERMINATION OF CONTRACT FOR PROFESSIONAL SERVICES FOR MUSEUM EXPANSION WITH FERRIS, JOHNSON AND PERKINS, ARCHITECTS, INC. 5. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH MCMURRY, INC. TO PROVIDE PUBLIC RELATIONS/MARKETING SERVICES FOR SILVERROCK RANCH. Redevelopment Agency Agenda 2 November 18, 2003 r) 4 6. APPROVAL OF THE SEPARATELY ISSUED LA QUINTA REDEVELOPMENT AGENCY ANNUAL AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2003. 7. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH THE DAHLIN GROUP TO PROVIDE BUILDING ARCHITECTURAL SERVICES FOR SILVERROCK RANCH. BUSINESS SESSION 1. CONSIDERATION OF A REQUEST FOR PROPOSALS (RFP) FOR ARCHAEOLOGICAL MONITORING SERVICES FOR SILVERROCK RANCH. A. MINUTE ORDER ACTION STUDY SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS — NONE ADJOURNMENT Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on December 2, 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. 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, November 18, 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, November 14, 2003. DATED: November 14, 2003 JUNE S. GREEK, CMC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 3 November 18, 2003 3 COUNCIL/RDA MEETING DATE: NOVEMBER 18, 2003 AGENDA CATEGORY: BUSINESS SESSION CONSENT CALENDAR I ITEM TITLE: STUDY SESSION Demand Register Dated November 18, 2003 PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated November 18, 2003 of which $256,512.02 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 0 OG 1� O 00 cv, Of w5 OF AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: November 18, 2003 CONSENT CALENDAR:OP ITEM TITLE: STUDY SESSION: Transmittal of Treasurer's Report dated September 30, 2003 PUBLIC HEARING: RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 5 O� Ui •�O w5 OFF AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: November 18, 2003 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: Transmittal of Revenue and Expenditure PUBLIC HEARING: Report dated September 30, 2003 RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: Transmittal of the September 30, 2003 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. Respec fully submitted, hn M. Falconer, Finance Director Approved for submission by: Mark A. Weiss, Acting Executive Director Attachments 1: Revenue and Expenditures, September 30, 2003 X ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.1: DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interst - County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND - NON-TAXABLE Pooled Cash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Loan Proceeds Rental Income Transfers In TOTAL CAPITAL IMPROVEMENT CAPITAL IMPROVEMENT FUND - TAXABLE Pooled Cash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Bond proceeds Rental Income Transfers In TOTAL CAPITAL IMPROVEMENT LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LQRP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Deed Repayment Transfer In TOTAL LOWIMOD TAX LOW/MODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOWIMOD BOND REMAINING BUDGET RECEIVED BUDGET 20,744,336.00 0.05 20,744,335.95 66,000.00 33,346.76 32,653.24 0.00 227.85 (227.85) 0.00 0.00 0•00 967,182.00 0.00 967,182.00 1,731,455 00 0.00 1,731,455.00 23,508,973.00 33,574.66 23,475,398.34 0.00 24,850.77 (24,850.77) 437,100.00 76,451.07 360,648.93 0.00 0.00 0.00 0.00 0.00 0.00 4,530.00 3,397.20 1,132.80 0.00 0.00 0•00 441,630.00 104,699.04 336,930.96 0.00 (26.55) 26.55 0.00 1,264.40 (1,264.40) 0.00 0.00 0•00 26,400,000.00 26,400,000.00 0.00 0.00 0.00 0•00 0.00 0.00 0•00 26,400,000.00 26,401,237.85 (1,237.85) 5,186,084.00 0.04 5,186,083.96 4,400.00 3,398.40 1,001.60 0.00 0.00 0.00 0.00 0.00 0•00 0.00 0.00 0•00 341,000.00 95,645.00 245,355.00 150,000.00 215,730.86 (65,730.86) 0.00 0.00 0•00 0.00 47,979.00 (47,979.00) 0.00 890.54 (890.54) 0.00 17,499.59 (17,499.59) 0.00 0.00 0•00 5,681,484.00 381,143.43 5,300,340.57 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 h LA QUINTA REDEVELOPMENT AGENCY 07/01/2003 - 9/30/03 BUDGET EXPENDITURES ENCUMBERED REMAINING BUDGET EXPENDITURE SUMMARY PROJECT AREA NO,1: DEBT SERVICE FUND: SERVICES 394,585.00 3,180.00 0.00 391,405.00 BOND PRINCIPAL 2,208,831.00 8,060,234.27 2,208,831.00 3,607,794.47 0.00 0.00 0.00 4,452,439.80 BOND INTEREST INTEREST CITY ADVANCE 967,182.00 241,795.50 0.00 725,386.50 PASS THROUGH PAYMENTS 9,959,701.00 352,414.00 0.00 9,607,287.00 ERAF SHIFT 4,000,000.00 0.00 0.00 4,000,000.00 TRANSFERS OUT TOTAL DEBT SERVICE 0.00 0.00 0.00 0.00 25,590,533.27 6,414,014.97 1 1 97Z- CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 1,561.04 0.00 3,338.96 SERVICES 99,619.00 27,631.65 0.00 71,987.35 LAND ACQUISITION 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ASSESSMENT DISTRICT ADVERTISING -ECONOMIC DEV 16,700.00 0.00 0.00 16,700.00 ECONOMIC DEVELOPMENT 187,000.00 32,797.68 0.00 154,202.32 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CAPITAL - BUILDING REIMBURSEMENT TO GEN FUND 0.00 1,225,208.00 306,301.50 0.00 918,906.50 TRANSFERS OUT 27,158,772.18 557,987.27 0.00 26,600,784.91 4 TOTAL CAPITAL IMPROVEMENT 2 , 9 .1 .1 CAPITAL IMPROVEMENT FUND/TAXABLE BOND BOND ISSUANCE COSTS 955,821.99 922,390.88 0.00 33,431.11 TRANSFERS OUT 25,444,178.01 0.00 0.00 25,444,178.01 25,477,609.12 TOTAL CAPITAL IMPROVEMENT 9 LOWIMODERATE TAX FUND: PERSONNEL 4,900.00 1,561.04 0.00 3,338.96 SERVICES 250,497.00 35,445.94 0.00 215,051.06 BUILDING HORIZONS 210,000.00 0.00 0.00 210,000.00 LQ RENTAL PROGRAM 150,000.00 1,509,196.00 49,080.56 658,956.00 0.00 0.00 100,919.44 850,240.00 LQ HOUSING PROGRAM LOWMOD VILLAGE APARTMENTS 2,350,000.00 0.00 0.00 2,350,000.00 LQRP - REHABILITATION 500,000.00 0.00 0.00 500,000.00 APT REHABILITATION 350,000.00 0.00 0.00 350,000.00 FORECLOSURE ACQUISITION 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 82,595.00 20,648.76 0.00 61,946.24 TRANSFERS OUT 2,398,079.46 0.00 0.00 2,398,079.46 7 5.16 TOTAL LOWIMOD TAX 7,805,267.2ff 7 5, LOW/MODERATE BOND FUND PERSONNEL SERVICES REIMBURSEMENT TO GEN FUND HOUSING PROJECTS TRANSFERS OUT TOTAL LOW/MOD BOND 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 2 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.2: DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Developer Agreement Transfers In TOTAL CAPITAL IMPROVEMENT LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Developer funding ERAF Shift - Interest Sale of Land Transfer In TOTAL LOWIMOD TAX LOWIMODERATE BOND FUND: Allocated Interest Non Allocated Interest Bond proceeds (net) Transfer In TOTAL LOWIMOD BOND REMAINING BUDGET RECEIVED BUDGET 9,723,411.00 0.00 9,723,411.00 0.00. 10,832.39 (10,832.39) 0.00 17.92 (17.92) 863,674.00 0.00 863,674.00 3,442,855 00 0.00 3,442,855.00 14,029,940.00 10,850.31 14,019,089.69 0.00 6,902.99 (6,902.99) 0.00 4,548.00 (4,548•00) 0.00 0.00 0•00 0.00 0.00 0•00 0.00 11,450.99 (11,450.99) 2,430,853.00 0.00 2,430,853.00 7,400.00 21,372.73 (13,972.73) 20,000.00 0.00 20,000.00 7,054,074.00 0.00 7,054,074.00 0.00 0.00 0•00 0.00 108,570.08 (108,570.08) 0.00 0.00 0.00 9,512,327.00 129,942.81 9,382,384.19 0.00 0.00 0.00 400,000.00 0.00 400,000.00 39,150,000.00 0.00 39,150,000.00 0.00 0.00 0.00 39,550,000.00 0.00 39,550,000.00 9 3 LA QUINTA REDEVELOPMENT AGENCY 07/01/2003 - 9/30/03 BUDGET EXPENDITURES ENCUMBERED REMAINING BUDGET EXPENDITURE SUMMARY PROJECT AREA NO 2• DEBT SERVICE FUND: 229,013.00 3,050.00 0.00 225,963.00 SERVICES BOND PRINCIPAL 176,169.00 176,169.00 290,253.18 0.00 0.00 0.00 288,641.82 BOND INTEREST INTEREST CITY ADVANCE 578,895.00 957,800.00 239,449.97 0.00 718,350.03 INTEREST - ERAF LMIOD LOAN 0.00 0.00 0.00 0.00 0.00 0.00 8,227,557.00 PASS THROUGH PAYMENTS 8,227,557.00 0.00 0.00 0.00 TRANSFERS OUT TOTAL DEBT SERVICE 10,169, .15 0.00 9,4601511.85 CAPITAL IMPROVEMENT FUND: 2,900.00 944.66 0.00 1,955.34 PERSONNEL SERVICES 78,544.00 24,992.47 0.00 53,551.53 ADVERTISING -ECONOMIC DEV 0.00 0.00 0.00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY 34,509.00 .00 8,626.74 0.00 25,882.26 REIMBURSEMENT TO GEN FUND 36,670.14) 1( 6,500.00) 0.00 (20,170.14) TRANSFERSTOTAL CAPITAL IMPROVEMENTOUT- 79,2 • 18.053.131 1' 1 ' vv LOWIMODERATE TAX FUND: 2,900.00 944.66 0.00 1,955.34 PERSONNEL SERVICES 127,171.00 18,389.88 0.00 108,781.12 2nd Trust deeds 150,000.00 2,520,000.00 0.00 0.00 0.00 0.00 150,000.00 ,2,0 .00 2nd trust deeds from Centerpointe 1,423,203.00 0.00 0.00 1 ,423,203.00 48th and Adams -from Centerpointe Low Mod Housing Project/47th/Adams Proj 489,592.00 0.00 0.00 489,592.00 48th/Adams Planning 480,000.00 80,000.00 0.00 0.00 0.00 400,000.00 150,000.00 FORECLOSURE ACQUISITION 150,000.00 71,988.00 17,997.00 0.00 53,991.00 REIMBURSEMENT TO GEN FUND 5,480,688.99 0.00 0.00 5,480,688.99 TRANSFERS OUT TOTAL LOWIMOD TAX 10,895,542-99 117. 1 •54 0.00 10,7113,211.45 LOWIMODERATE BOND FUND 2nd TRUST DEEDS LAND BOND ISSUANCE COSTS TRANSFERS OUT TOTAL LOWIMOD BOND 7,000,000.00 0.00 0.00 7,000,000.00 31,000,000.00 0.00 0.00 31,000,000.00 1,500,000.00 0.00 0.00 1,500,000.00 0.00 0.00 0.00 0.00 9, 0, 0 .0 -0.00 0.00 39,500,000-00 10, 4 000, 8 ti OF'T9 COUNCIL/RDA MEETING DATE: November 18, 2003 ITEM TITLE: Approval of Notice of Termination of Contract for Professional Services for Museum Expansion with Ferris, Johnson & Perkins Architects, Inc. RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 4 STUDY SESSION: PUBLIC HEARING: Approve the issuance of a Notice of Termination of Contract for Professional Services for Museum Expansion with Ferris, Johnson & Perkins Architects, Inc. FISCAL IMPLICATIONS: The La Quinta Redevelopment Agency entered into a Professional Services Agreement with Ferris Johnson & Perkins Architects, Inc. ("FJPA"), for the La Quinta Museum Expansion in March of 2001. The total compensation under the contract was to be $88,072. To date, FJPA has been paid $48,719.61. FJPA is in default and has not completed the required architectural services. It -is anticipated that the cost of hiring a new architect to complete the plans will exceed the remaining unspent funds under the contract ($39,352.39). The Agency Board has authorized the initiation of litigation against FJPA to recover damages the Agency will incur as a result of the breach of agreement. CHARTER CITY IMPLICATIONS: None. S:\CityMgr\STAFF REPORTS ONLY\1 1-1 8-03\C 3.DOC 11 BACKGROUND AND OVERVIEW: In March of 2001, the Agency entered into an agreement with FJPA for design services relating to the La Quinta Museum expansion. A copy of the Agreement is provided as Attachment 1. FJPA partially performed its obligations under the Agreement and then ceased work. Prior to the cessation, FJPA had produced a draft of the plans for the Museum. FJPA has been paid $48,719.61. It is staff's understanding that FJPA did not pay its engineering subcontractor, The Keith Companies. The Keith Companies has indicated that it is owed approximately $11,000 by FJPA. FJPA is in default under the Agreement and has not completed the required architectural services. On September 29, 2003, a notice of default was issued in accordance with Section 7.2 of the Agreement. A copy of the Notice of Default is provided as Attachment 2. Agency Counsel and staff have made numerous attempts to contact FJPA without success. FJPA was required to commence its cure of default by October 9, 2003 and complete the cure by November 13, 2003. It took neither action. Section 7.8 of the Agreement provides: 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, Agency may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed Agency as previously stated in Section 7.3. It is anticipated that the cost of hiring a new architect to complete the plans will exceed the remaining unspent funds under the contract ($39,352.39). The Agency Board has authorized the initiation of litigation against FJPA to recover the damages Agency will incur as a result of the breach of the Agreement. The proposed notice of termination is submitted herewith as Attachment 3. Staff is currently investigating options for obtaining the completion of the Museum expansion plans and will report back to the Agency Board when the investigation has been completed. S:\CityMgr\STAFF REPORTS ONLY\1 1-1 8-03\C IDOC 2 1< FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the issuance of a Notice of Termination of Contract for Professional Services for Museum Expansion with Ferris, Johnson & Perkins Architects, Inc.; or 2. Do not approve the issuance of a Notice of Termination of Contract for Professional Services for Museum Expansion with Ferris, Johnson & Perkins Architects, Inc.; or 3. Provide staff with alternative direction. Respectfully submitted, C;mothyR.q;assqU, P.E. Public Works Director/ City Engineer Approved for submission by: Mark Weiss, Acting Executive Director Attachments: 1. Professional Services Agreement with Ferris Johnson & Perkins 2. September 29, 2003 Notice of Default 3. Proposed Notice of Termination S:\CityMgr\STAFF REPORTS ONLY\11-18-03\C 3.DOC 13 3 ATTACHMENT 1 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA REDEVELOPMENT AGENCY, ("Agency"), and FERRIS JOHNSON & PERKINS ARCHITECTS, INC. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 sae of Services. In compliance with all terns and conditions of this Agreement, Consultant shall provide those services related to CITY OF LA QUINTA MUSEUM EXPANSION, PROJECT NO. 2000-10, as specified in the "Scope of Swvices" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work'). Consultant 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. 1.2 CoLMIAiance with Law. AN SeN1ces rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 , Licenses, Permits. Fees and Assessments. Except as otherwise specified herein, Consultant 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. Consultant 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. 1.4 Fami, liarity- with Work. By executing this Agreement, Consultant 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 Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by Agency, it shall immediately inform Agency of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by Agency, except such losses or damages as may be caused by Agency's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to Agency, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the Agency Board of Directors. 14 T:WWDMU ROTBCPS12000PrjctsMOD-10 Mum mMPA PSA.wpd p%P 14f 8 1.7 Special ftuiremente, Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 1 •�� L U. MW I 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed EIGHTY EIGHT THOUSAND SEVENTY TWO Dollars (488,072.00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment In accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to Agency no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, 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, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. Agency will pay Consultant for all expenses stated thereon which are approved by Agency pursuant to this Agreement no later than the last working day of the month. 3.1 Time of E4senea. 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 time period established in Exhibit "C" (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure, The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than Agency, and unusually severe weather, if Consultant shall within ten 0 0) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract 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 or her judgement such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 15 TAPWDBM1PR0JEC73WWPrj uW00.10 MUMMU PA PSA.wpd Pais 2 048 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 9111 0. 11110: •0 • •:. 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a: Paul W. Johnson, Principal It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may, be assigned to perform the service required hereunder without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be Dodie Norwitz, Community Services Director, or such other person as may be designated by the Agency Executive Director. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Siibcontracting, or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for Agency to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of Agency. 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 Agency. 4.4 Independent Contractor. Neither Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of Agency and shall remain at all times as to Agency a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Aged Coopartion. Agency shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by Agency. �b TAPWDBPrM0JECrS MP*u\2000-10 MUMM\FJPA PSA.wpd Paw 3 of 9 5.1 lnallrance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant'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 Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall be delivered to and approved by Agency 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: CantragI Sum Personal Injyty/ProgWrcy Damage , o rage Less than $50,000 $100,000 per individual; $300,0 00 per occurrence $50,000 - $300,000 $250,000 per individual; $500,000 per occurrence Over $300,000 $500,000 per individual; $1,000,000 per occurrence Consultant shall 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 Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant'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 Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall be delivered to and approved by Agency prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws. Consultant shall procure professional errors and omissions liability insurance in an amount acceptable to Agency. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be canceled without thirty (30) days written notice to Agency of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify Agency, its officers, employees, contractors, subcontractors, or agents. 5.2 I dem� reification, Consultant shall defend, indemnify and hold harmless Agency, its officers, employees, representatives and agents, from and against those 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 Agency) and for errors and omissions committed by Consultant, its officers, employees and agents, which arise out of Consultant's negligent performance under this Agreement, except to the extent of such loss as may be caused by Agency's own negligence or that of its officers or employees. 7 T,.UwWDBPI' OJEMT 2MpdcUk2000-10 M=OUMXFJPA P3A.Wpd Papa 4 of R 5.3 Remedies. In addition to any other remedies Agency may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, Agency may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any Payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies Agency may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. • •01110 4• 6.1 ROMIU. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Hecotdj. Consultant 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 principals. 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 Owmershin of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to Agency any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify Agency for all damages suffered thereby. In the event Agency or any person, firm or corporation authorized by Agency reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or -makes any changes or alterations in said documents and materials, Agency hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 8 TAPWD8MM0JEG' %2000N0tj 1A00.10 MUSGUM pA PSA.Wpd 130M . s _* 0 6.4 _Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant 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. Consultant shall not disclose to any other entity or person any information regarding the activities of Agency, except as required by law or as authorized by Agency. 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 Califomia. 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 Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Djap tom. 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 obligations 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, Agency may take such immediate action as Agency deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Agency may withhold from any monies payable to Consultant sufficient funds to compensate Agency for any losses, costs, liabilities, or damages it reasonably believes were suffered by Agency due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waoye . No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Consultant requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. 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 Richts and Remedies are Cum dative, 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. 13 0 T:UPWDBPrTR0TBCrSUMP*wU000.10 MUWUMWlpA PSA-Wpd Plum A .,f2 7.6 Lg9al 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 EXpIr2tion 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. Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall. immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant 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 or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination For Default of CoMultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, Agency may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed Agency 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 connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.1 Non -liability of AMgy Offs _ rc and Fmglloy=. No officer or employee of Agency shall be personally liable to Consultant, or any successor in Interest, in the event or any default or breach by Agency or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of interest. No officer or employee of Agency 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 affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimi atinn, Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. �' 1M „ I Riota W-1 • •: 1111FJ ki re Mk T:%PWDEnNMOJBCT Mo0Prjcn12 WIO MU=UnWPA PSA.wpd P*e *0P s 9. f Not c8• Any notice, demand, request, consent, approval, communication either party desires or is required to give 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. To Agency: CITY OF LA QUINTA Attention: Dodie Horvitz 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92253 To Consultant: FERRIS JONNSON & PERKINS ARCHITECTS, INC. Attention: Paul W. Johnson 3254 4' Avenue San Diego, California 92103 9.2 Integrated Agreernfint. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 . This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 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 judgement or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect 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. * * * * * * * * * * * * * * * * * * * *The remainder of this page intentionally left blank 21 11 T:IPWDEPrMojE n%2000prjcb12000-1014uMM1FJPA P3A.%,pd IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA REDEVELOPMENT AGENCY Thomas P. Genovese, Agency Executive Director Date ATTEST: June S(G!eA, A envy Secretary APPROVED AS TO FORM: - fi //J� M. Katherine Jenson,(Agency Council FERRIS JOHNSO & P RKINS ARCHITECTS, INC.: By: Name: Paul W. Johnson Title: Principal Date: 7 • ZZ . ZO© I T:UVDEPrftOJBC' u000pejM%2W0-10 M Rural JPA PSA.wpd 12 Page 9 of !t Exhibit A Scope of Services Ferris Johnson & Perkins Architects, Inc. scope of services, dated January 7, 2000, is attsched and made a part of this agreement. 23 13 f2ropo5ed Architectural e Sco Detai le p d Revlew January 29, 2001 The following is an explanation of the services proposed. The intent Is to f document the further Proposed services, but not to dictate a certain set of services. If the services herein described do not meet the desires of the Client, we are very willing modify the scope to better meet the Client's needs and desires. to 5crvicm Site Documentation vi5it5 This phase would include visits to the existing site to document the existing through measured drawings and photographs. conditions Programming Meetings would take place with the Architectural Review Committee to explore compile the features of the new design. The Building Committee would a and Individuals and be comprised of organizations appointed by the City. The Programming would Identify features, needs and desires and rank them in order of priority. A written document would be the initial product of Programing, however this document Will m updated during the design process. 1 likely be Review with ConSultant5 on programming As part of the Programming process, the various Consultants would be interview their input to the Program. Interviewed for Background CEQA information General information would begin to be gathered for the CEQA documentation. such as regional Historical Societies, the Regional Inform Sources Preservation Commission, and Archeological Soviet �� Center, the Historic Societies would be researched, Preliminary Pc5ign5 A & B Each Preliminary Design would consist of schematic site i elevations, and 3D views of the design. Pan, floor plan(s), exterior I 24 14 Consultant review of De5*5 A & 8 Each Preliminary Design would be developed with the in Consu�nts. As a par�cular design progresses, e � and review of the og each Consultant would be questioned on impacts of structure, mechanical, etc. on the particular design. Presentation of Design A &D Each of the Prellminary Designs would be presented to Staff and the Architectural Review Committee via the City's computer projector. H awins (described in Prelimin Designs Handouts of the drawings �Y signs A A 8 above) would be on 11 x 17 paper. Final Design Once a Final Design is deeded upon by the City Council, more detailed drawl Prepared. The drawings will consist of design development site l drawings will be exterior elevations, and building sections. The design developmentplan, door ��{s}, will involved greater detail of the i � stage of drawings Integration of structural, mechanical, landscape, lighting, etc. into the design. Design Development construction cost estimate With the execution of the Final Design, a construction cost estimate will be done. CEQA preparation With the Final Design known, the Negative or Mitigated Negative Declaration be Prepared. A draft Declaration will be Prepared and do can Department y reviewed with the Planning Fresentation Materials With the presentation of the Final Design to the Planning Commission, C Historical Commission, illustrations of the Design will ben � Council and site plan, floor plan(s), exterior elevations and building��� �� will consist of sections. This material will be Presented on large boards (approx. W x 4("), handouts (approx. 11 " x 17`), and via the City's Computer projector. Still and motion 3D views of the Final Design generated. The 'fly throughs' will be downloaded onto CD' so so that n will be Time software can view the 3D Computer model of the Final D anyone with Quick slgn. Final Design reviews The Final Design will be presented to the Historical Commission, C Planning Commission via the above mentioned material � Council and separate presentations are scheduled. $and methods. A total of four 05 2 15 30 day circulation of CEQA draft document Once the City Council and the Historical Commission have their review of the Final Design, there should be no major changes. At this point the CEQA safely begin Its 30-day circulation. document could Response to CEQA circulation comments Any comments received during the 30-day circulation will be addressed at this Draft responses will be generated by this office and reviewed with pant. Department. the Planning Final reviews of Final Design After the circulation and response to the CEQA document, the PlanningCommission and City Council can rule on the findings. ss�on I55uarice of Negative or Mitigated Negative Declaration After the ruling of the Planning Commission and the City Council, the CEQA d can be issued. document Construction Documents Distribution of Final Design to Con5ultant5 The Final Design will distributed to the various Consultants in paper and electronic formats. Each Consultant will be c:oungrelevant their ied on the design and issues relet t involvement. eir Gathering information for 5pecifications As the construCtion documents progress, products reviewed for possible use in design will be retained for possible inclusion in the specifications. the Progre55ion of Construction Documents The listed 50% and 90% stages represent the majority of the work on the construction document phase. This consist of the many drawing details integrationofthe e Consultant's work, product integration, etc. This is them � � � laborious and time- consuming segment of the entire process. Finalization of drawings and 517ecification5 In this phase the many drawings and details are assembled Into the final an layout referenced. Specifications are completed and printed. y d Receipt of final ConSultanV5 drawings and 5Wification5 As the above in-house process is taking place, the Consultant's drawl specifications are received and integrated into one set of documents.drawings and 3 16 Revicw and cross checking A thorough review and Ching of the documents occurs. Construction Documents ready for flan Check At this point the Project g0e3 on hold, waiting funding in 2003. It Is the recommendati on Of this consultant to hold the process at this point. Although the documents are rea dy for plan check, there are many possible changes and modifications that might occur between now the 2003. For that reason, I believe it Is best to Plan Check the documents when the funding becomes available. n ►� 4 17 Exhibit B Schedule of Compensation Payment shall be in full at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. Total compensation for all work under this contract shall not exceed EIGHTY EIGHT THOUSAND SEVENTY TWO Dollars ($88,072.00) except as specified in Section 1.6 - Additional Servi e4 of the Agreement. Ferris Johnson & Perkins Architects, Inc. Fee schedule is attached and made a part of this agreement. 48 18 TOM ----r ---W- Mw � �t Exhibit C Schedule of Performance Consultant shall complete all services in accordance with the Project Schedule, a part of this agreement. e, attached and m ade 20 67wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwwww ww wwwwwww wwww - wwwwwww wwww wwwwwww wwww wwwww wwwww wwwwwwwwwwww wwww wwwwwww www wwwwwwww wwwwwwwwwwww wwwwwwwwwwww ww wwwwwwwww um wwwwwwwwww w wwwwwwwwww wwwwwwwwwww wwwwwwwwwww wwwwwwwwwww wwwwwwwwwwww --wwwwwwwwwwww - ewwwwwwwwwww wwwwwwwwwwww wwwwwwwwwwww wwwwwwwwwwww wwwwwwwwwwww wwwwwwwwwww wwwwwwwwww w wwwwwwww ww 'wwwwwww wwww wwwww wwwww wwwww wwwwww wwwww wwwwww wwwww wwwwww wwwww wwwwww wwww wwwwwww www wwwwwwww www wwwwwwww - www wwwwwwww wwwwwwwwwwwwwwwwww www wwwwwwww wwwwwwwwwwwwwwwwww www wwwwwwww wwwwwwwwwwwwwwwww wwwwwwwww wwwwwwwwwwwwwwww w wwwwwwwwwwww wwwwwwwwwwwwwww ww wwwwwwwwwwww wwwwwwwwwwwwwwwwww wwwwwwwwwwww wwwwwwwwwwwwww www � wwwwwwwwwwww wwwwwwwwwwwww wwww •wwwwwwwwwwww wwwwwwwwwwwww wwww wwwwwwwwwwwww wwww wwwwwwwwwwwww wwww wwwwwwwwwwww wwwww . wwwwwwwwwwwwwwwwww ' wwwwwwwwwww wwwwww � wwwwwwwwwwwwwwwwww + j wwwwwwwwwwwwwwwwww wwwwwwwwww wwwwwww + ' wwwwwwwwww wwwwwww wwwwwww w wwwwwww • wwwwwww �rwwwwwww ,; wwwwwww wwwwwwwwww wwwwwww wwwwwwwwww . wwwwww wwwwwwwwwww _ wwww wwwwwwwwwwwww ` wwww wwwwwwwwwwww . wwww wwwwwwwwwwwww www wwwwwwwwwwwwww � a ,, � • w wwwwwwwwwwwwwwww . w wwwwwwwwwwwwwww _ - w wwwwwwwwwwwwwwww _ wwwwwwwwwwwwwwwww s wwwwwwwwwwwwwwwwww wwwwwwwwwwwwwwwwww + wwwwwwwwwwwwwwwwww _ wwwwwwwwwwwwwwwwww =_- . wwwwwwwwwwwwwwwwww - - � _ ' . Exhibit D Special Requirements Optional services for Construction Bid Assistance and Observation may be provided at the sole discretion of the City of La Quints Redevelopment Agency and shall be .based upon the Fee Schedule and rates presented by Ferris Johnson & Perkins Architects, attached and made a part of this agreement. Payment shall be in full at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours isubmitted in conformance with Section 2.2 of the Agreement. Total compensation for all work under this optional shall not exceed THIRTY SIX THOUSAND ONE HUNDRED TWENTY Dollars ($36,120.00) except as specified in Section 1.6 - Additional Services of the Agreement. There are no provisions approved for any escalation of the rates presented for Architectural Services, without expressed, written approval of the City of La Quints Redevelopment Agency. 22 ATTACHMENT 2 • TAN !I CKER A T T O R N E Y S A T L A W A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS 611 ANTON BOULEVARD, FOURTEENTH FLOOR COSTA MESA, CALIFORNIA 92626-1931 DIRECT All MAIL TO: POST OFFICE BOX 1950 COSTA MESA, CALIFORNIA 92628-1950 TELEPHONE 714-641-5100 FACSIMILE 714-546-9035 INTERNET ADDRESS www.rutan.com A.W. RUTAN 01140-197]) ' TUCKER SR. 011841-19S0) AM R. MOORP EVRIDRLI (VKpI DALLAS PATRICK D. MCCA6. • MARLENE POSE IURGENSEN PAUL FKMFC MARX RANDALL M. BABBUSH RICHARD K. HOWELL APIM LEE WALTER RIC ARD A. CURNUTT MARY M. GREEN TAMES S. WEISZ• KAREN ELIZABETH WALTER qHN B. HURLBUT. IN, GREGG AMBER DAVID H HOCHNER Xmm W. HVMILTON, IR, M104AEL W. IMMELL MICHAEL F. STIZER A. PATRICK MU14OZ ROGER F. FRIEDMAN MILFORD W. DAHL, IN. THOMAS). CRANE ROBERT O. FISH PHILIP I BLANCHARD THEODORE 1.WALLACE. IN.• MARK B. FRAZIER S. DANIEL HAROOTTLE TERENCE 1• GALLAGHER "PH D. CARRUTH PENELOPE PARMES PAUL 1. SIEVERS PAUL G. CASTOR RCHARD P. SIMS M. KATHERINE IENSON IOSEPH L. MAGA. III SUSAN 1. BARRCELLA TAMES B. O'NEAL DUKE F WAHLQUIST KRAIG C. KILGER DEIA M. HEMINGWAY ROBERT C. BRAUN RCHARD G. MONTEVIDEO KEW M. CLAYTON DENISE L. MESTER THOMAS S. SALINGER• LOR1 SARNER SMITH STEVEN I GOON W. ANDREW MOORE DAVID C. LARSEN• ERNEST W. KLATTL RI DOUGLAS 1• DEW41NGTON CHARLES A. DAVENPORT. III CLIFFORD E. FRIEDFN KIM D. THOMPSON MARTIN W. TAYLOR MARK M. MALOVOS MICHAEL D. RUBW IAYNE TAYLOR RACER MARK J. MYNE NIKKI NGUYEN IRA G. RIVW DAVID B. COSGROVE IOHN A. RAMIREZ JENNIFER S. ANDERSON JEFFREY M. ODERMAN HANS VAN UGTEN DAN SLATER IOHN T. BRADLEY STAN WOLCOTT STEPHEN A. ELLIS RONALD ► OLNES ALLISON LEMOINE•ilR ROBERT S. BOWER JEFFREY WERTHEIMER JEFFREY T. MELCHING KAREN L. KEATING MANCIA A. FORSYTH ROBERT O. OWEN NEILA R. BERNSTEIN LISA NCHOLAS MEAL WILLIAM M. MARTICORENA ADAM N. VOLKERT MARK SUDENS IX. DONAL.D H PELGRIM. Pt TAMES L. MORRIS JEFFREY A. GOLDFARB TREG A. RILANDER MARK I. AUSTIN MICHAEL T HORNAK F. KEVIN BRAZIL LORI WILLIAMS ROBERT H. MARCEREAU PHILIP D. KOHN LAYNE H. MELZER TODD O. UTFIN NOAM L DUZMAN JOEL D. KUPERBERG L. SKI HARRISON KENNA S. CARLSON MITCH MILSTEIN STEVEN A NICHOLS LARRY A. CERUTTI CRISTY LOMENZO PARKER CARISSA K. PODESTA THOMAS G. BROCKNIGION CAROL D CARTY DAVID 1. ZOETEWEY MATTHEW W. GRIMSHAW EPIPHANY OWEN ANTHONY R. TAYLOR MICHAEL R. W. HOUS70M ANDREW E. AINSWORTH SETH L. HANSON ALEJANDRO S. ANGULO ARON O. HANSEN DAMON D. MIRCHEFF LONA LAYMON POORNIMA IAYAPRAKASN MELISSA R. BRANDMAN IESSE E.M. RANOOLPH KIMBERLY A. RIKER RACHEL M. SCHUMACHER GERARD M. MOONEY, M. OF COUNSEL LEONARD A HAMPEL EDWARD D. SYBESMA IR. SENATOR DICK AORRMAN DAVID 1. GARRIALDI, BI WILLIAM J. CAPLAN MARTIN FBSENMAIER- •A PROFESSIONAL CORPORATION -PATENT AGENT Direct Dial: (714) 641-3413 E-mail: kjensonQlvtan.cvm September 29, 2003 VIA PERSONAL DELIVERY Mr. Paul W. Johnson FERRIS JOHNSON & PERKINS ARCHITECTS, INC. 3254 4th Avenue San Diego, California 92103 Re: Notice of Default - Contract with City of La Quinta for Museum Expansion - Architectural Services Dear Mr. Johnson: I am the Agency Counsel for the La Quints Redevelopment Agency ("Agency"). This letter is being sent to you on behalf of the Agency, and relates to the Professional Services Agreement ("Agreement") that Ferris Johnson & Perkins Architects, Inc. ("FJPA") entered into with the Agency in 2001, relating to the expansion of the La Quinta Museum. The purpose of this letter is to notify you that FJPA is currently in default of numerous provisions of the Agreement. This letter is being sent pursuant to Section 7.2 of the Agreement. FJPA must commence to cure each and every default within 10 days of the date of this letter, and must complete the action necessary to correct the default(s) within 45 days of the date of this letter. If FJPA fails to do so, I will be seeking authorization from the Agency Board, at the Agency Meeting on November 18, 2003, to file a legal action against FJPA for, among other things, breach of the Agreement. Agency staff has repeatedly notified FJPA of its noncompliance with the Agreement. FJPA has failed to correct its course. For this reason, the matter has been turned over to my office for legal action. The following is a list of FJPA's defaults. Section 1.3 — Business License. FJPA was required to obtain a business license before it commenced its work in La Quinta. FJPA was reminded of this at the kick-off meeting for the project. The City's records show that no license was obtained. 119/015610.00016 436960.01 a09/29/03 23 33. RJTA-N 9WC- KER3 ArTORNR Vi AT LAW Mr. Paul W. Johnson September 29, 2003 Page 2 Sdction 3.2 — Schedule of Performance. FJPA is in serious breach of the schedule. It was required to have the construction documents 50% complete, and submitted to the Agency for review during the last week of December 2001. The 50% review documents were not submitted until October 28, 2002, 10 months past the deadline. The Agency promptly submitted comments on this submission, and has repeatedly sought resubmission of the construction documents so that the project could be bid in January of this year. No further submittals were received from FJPA. FJPA is in total breach of the Schedule of Performance and is now directly responsible for delaying the project. FJPA is now 18 months in arrears and is not responding to the inquiries of the Agency staff. Section 4.2 -- Updates to Contract Officer/Section 6.1 Reports. Ms. Dodie Horvitz, the Community Services Director, has been designated as the "Contract Officer" for the project. FJPA agreed to keep the Contract Officer informed on the progress of the work, and further agreed to provide reports upon the request of the Contract Officer. FJPA has repeatedly been requested to provide an update on the now grossly overdue work, to no avail. On February 19, 2003, FJPA was specifically requested again to provide an updated schedule. No such information or updated schedule has been provided. Sgction 4.3 — Prohibition Against Assignment. It appears that FJPA has attempted to assign this Agreement to a new entity, Ferris, Johnson Associates Architects, Inc. Agency staff has noted that the telephone number for FJPA is now answered as "Johnson & Associates." The Agency has not been requested to consent to any assignment of the contract. Any assignment that has occurred is invalid. Section 6.1— Insurance. The Agreement requires FJPA to carry several different types of insurance, and to provide certificates of insurance to the Agency before commencing on the work. FJPA was reminded of this obligation at the kick-off meeting. The Agency's records show that no certificates were provided. Pursuant to Section 6.3, on behalf of the Contract Officer, the Agency is hereby requesting that the originals of all drawings, specifications, reports, records, documents, and other materials be turned over to the Agency immediately. If you have legal counsel, please have your legal counsel contact me immediately. If you do not have legal counsel, we suggest that you consult with counsel to be apprised of the consequences of FJPA's breach of its obligations under the Agreement, including its exposure to the Agency's legal fees under Section 7.9 of the Agreement. As stated above, FJPA must commence to cure of all of the above deficiencies within 10 days. If it fails to do so, or if it commences to cure these breaches but fails to fully rectify the 119/015610-0006 j 436860.01 a09/29/03 24 MJTAN KERB A rT O t N E T f A T L A W Mr. Paul W. Johnson September 29, 2003 Page 3 noncompliance with the Agreement within 45 days, the Agency will take all appropriate legal action, including a lawsuit for its damages, costs, and attorneys' fees. Very truly yours, RUTAN & TUCKER, LLP /Z.ath a Jenson Agency Counsel, La Quinta Redevelopment Agency MKJ:ly cc: Thomas P. Genovese, Executive Director Tien Jonasson, Public Works Director 119/015610-0006 436960.01 g09/29/03 25 �J 1 2 3 4 5 6 7 8 I� 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY PERSONAL SERVICE STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed in the County of Orange, State of California. I am over the age of 18 and not a party to the within action. My business address is 1001 North Ross Street, Santa Ana, CA 92701. On September 29, 2003, I served the within: LETTER TO PAUL W. JOHNSON, DATED SEPTEMBER 29, 2003 RE: NOTICE OF DEFAULT on the interested party(ies) in this action by personally delivering it in sealed envelope(s) to the offices of the person(s) listed below: Mr. Paul W. Johnson FERRIS JOHNSON & PERKINS ARCHITECTS, INC. 3254 4th Avenue San Diego, California 92103 Executed on September 29, 2003, at Costa Mesa, California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. (Type or print name) W rl wide Network, �t (S4 e 2046/015610-0006 436999.01 s09/29/03 26 r ATTACHMENT 3 P.O. 'Box 1504 78-495 CALLS TA PICO LA QUINTA,. CALIF RNIA 92253 Mr. Paul W. Jot FERRIS JOHNS 3254 4th Avent San Diego, Cali 1 1m & PERKINS ARCHITECTS, INC. 92103 (760) 777-7000 FAX (760) 777-7101 November 19, 2003 otice of Termination for Default - Agreement with the La Quinta edevelopment Agency for Museum Expansion - Architectural Dear Mr. Johnson: This letter shall' constitute Notice of Termination from the La Quinta Redevelopment Agency ("Agency"). This letter relates to the Professional Services Agreement ("Agreement") that Ferris Johnson & Perkins Architects, Inc. ("FJPA") entered into with the Agency in 2001, relating to the expansion of the La Quinta Museum. As you know, on September 29, 2003, the Agency delivered a notice to you that FJPA was in default of numerous provisions of the Agreement. That letter was sent pursuant to Section 7.2 of the Agreement. FJPA was required to commence to cure each and every default by October 9, 2003. FJPA was further required to complete the action necessary to correct the defaults by November 13, 2003. FJPA took no action in response to the notice of default and has refused to return the telephone call of the Agency staff and the Agency Counsel, M. Katherine Jenson. In accordance with its rights under the Agreement, the Agency is hereby notifying you that the Agreement is terminated for cause, namely, FJPA's breach of its obligations under the Agreement. Pursuant to Section 7.8 of the Agreement, the Agency intends to hold FJPA responsible for the costs the Agency incurs in having the work covered by the Agreement completed by another firm. This will be in addition to all other damages that your breach of Agreement has caused. In addition, the Agency intends to seek reimbursement of its legal fees in accordance with Section 7.9 of the Agreement. In accordance with Section 6.3 of the Agreement, the Agency once again requests that it be provided with the originals of all drawings, specifications, reports, records, documents, and other materials. Please notify me immediately at (760) 777-7100 as to when these items may be picked up from your office. Sincerely, Mark Weiss Acting Executive Director La Quinta Redevelopment Agency 27 O _ � OFF 4 Sep OF COUNCIL/RDA MEETING DATE: November 18, 2003 ITEM TITLE: Approval of a Professional Services Agreement with McMurry, Inc. to Provide Public Relations/Marketing Services for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a Professional Services Agreement ("Contract") with McMurry, Inc. to provide public relations/marketing services for the SilverRock Ranch project, and authorize the Acting Executive Director to execute the Contract. FISCAL IMPLICATIONS: The FY 2003-04 Capital Improvement Budget includes $4,459,000 for professional services for Phase 1 of the SilverRock Ranch project, of which $500,000 has been designated for public relations/marketing services. The Contract with McMurry is for a not to exceed fee of $550,000, including a $50,000 option for an ad campaign involving the publishing arm of McMurry. BACKGROUND AND OVERVIEW: On August 5, 2003, the Redevelopment Agency authorized distribution of a Request for Proposals (RFP) for public relations/marketing services for SilverRock Ranch, and identified a Consultant Selection Committee. Proposals were due August 22, 2003, and twelve firms submitted proposals. The Committee interviewed six firms on September 5, 2003, and recommended four be interviewed by the full Redevelopment Agency Board: inOne Advertising and Design, Kiner/Goodsell Advertising, McLaughlin Marketing & Communications, and McMurry, Inc. On September 30t 2003, the Agency interviewed the four firms, selected McMurry, Inc., and authorized staff to negotiate a contract for professional services. Staff negotiated with McMurry .via meetings, various a -mails and telephone calls. These efforts resulted in a Contract (Attachment 1) for an amount not to exceed $550,000, which includes an option of $50,000 for an ad campaign involving the publishing arm of McMurry, i.e., the Ritz -Carlton and Arrive insertions. With a preference by McMurry to receive a monthly retainer, the tasks and activities included within the Scope of Services (Exhibit A of the Contract, which also includes a list of deliverables) have been divided into two categories: "ongoing" and "other." The two categories are identified in the Key Marketing Initiatives Flow Chart (Exhibit C of the Contract), with "ongoing" activities pertaining to items such as public relations, ad development, and media strategy and "other" activities encompassing projects such as brand strategy/identity and the golf course's ground breaking and grand opening events. The "ongoing" activities' total of $290,000 is proposed as the basis for a monthly retainer. Divided by 18 (assuming an 18-month contract), this amount would total $16,11 1 per month. The remainder of the Contract amount, or the "other" activities, which amount to $210,000, would be paid on a project -by -project basis. Language has been included in the Contract to address the possibility of a delay in the opening of the golf course. The intent is to work within a $550,000 budget through opening day (even if the opening were delayed, for example, from January 2005 to November 2005). In April 2004, the Agency will make a determination as to whether it feels the project is on schedule. In the event the project is behind schedule, the Agency and McMurry will reassess, and potentially lower, the monthly retainer fee, and will re-evaluate the remaining marketing activities. The contract sum, as represented in the Contract, assumes acceptance of the $50,000 option, and totals $550,000. Unless otherwise directed, staff will consider this the final Contract amount. If approved, the Contract will be in effect for 18 months from December 1, 2003 to May 31, 2005. It will be subject to final changes approved by the Agency Counsel and Acting Executive Director. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a Professional Services Agreement with McMurry, Inc. to provide public relations/marketing services for the SilverRock Ranch project, and authorize the Acting Executive Director to execute the Contract; or 2. Do not approve a Professional Services Agreement with McMurry, Inc. to provide public relations/marketing services for the SilverRock Ranch project, and do not authorize the Acting Executive Director to execute the Contract; or 3. Provide staff with alternative direction. 2 Respectfully submitted, Mark Weiss, Acting Executive Director Attachment: 1. Professional Services Agreement 1110 PROFESSIONAL SERVICES AGREEMENT This AGREEMENT FOR PROFESSIONAL SERVICES (the "Agreement"), is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY (the "Agency"), a California municipal corporation, and McMurry Inc. (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. 1.2 Contractor's Proposal. The Scope of Services shall include the Contractor's proposal or bid, 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. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the Municipality, 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 Agency, it shall immediately inform Agency 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 41 4 the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, 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 Agency, except such losses or damages as may be caused by Agency'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 Agency, 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 Contractor shall be compensated in an amount not exceeding five hundred fifty thousand Dollars ( 550 000) (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, and similar costs and expenses when and if specified in the Schedule of Compensation (Exhibit `B"). The parties acknowledge and agree that the Contract Sum, $550,000, is to compensate Contractor for all services defined within the Scope of Services for the time period through the opening of the first golf course. The parties agree that if by April 30, 2004, the Agency determines that the first golf course will not be opened within the 18- month term of this Contract, then unpaid portion of the $290,000 designed to cover the monthly retainer shall be reallocated to cover the number of months estimated in good faith by the Agency to the opening of the first golf course. In no event shall the total paid for this component of the compensation exceed $290,000, and Contractor agrees to remain in service through the opening of the first golf course, but not beyond December 31, 2005. In the event that activities are required and approved by the La Quinta Redevelopment Agency during the term of this agreement and/or extension of this agreement, that are beyond the Scope of Services as identified within Exhibit A and delineated in Exhibit C, Key Marketing Initiatives Flow Chart / Revised, said activities will be additionally compensated beyond 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 Agency no later than the tenth (1 Orh) working day of such month, in the form approved by the Contract Officer, an invoice for 42 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 periods specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to 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 their 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. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.8 of this Agreement, this Agreement shall continue in full force and effect for eighteen (18) months, 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 the work specified herein and make all decisions in connection therewith: 1. Stephen L. Williams 2. Bruce Nilsson It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for Agency 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 Agency. 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 Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of 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 Agency 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 Agency. 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 Agency. 4.4 Independent Contractor. Neither the Agency 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 Agency. 4.5 Agency Cooperation. The Agency 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 Agency. 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 Agency and its officers and employees as additional insured shall be delivered to and 44 7 approved by the Agency 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 $503,000-$3005000 $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 Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. 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 Agency. 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 Agency. 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 Agency, its officers, employees, contractors, subcontractors or agents. 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency, its officers, officials, employees, representatives and agents, Agency indemnitees, 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 Agency) ("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 Agency's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the Agency indemnitees 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 Agency indemnitees, or at the Agency's option, reimburse the Agency 8 indemnitees 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 Agency indemnitees. 5.3 Remedies. In addition to any other remedies the Agency 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 Agency, 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 Agency may have and are not the exclusive remedies for Contractor's failure to . maintain or secure 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 drawing 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 Agency and shall be delivered to Agency 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 Agency of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of 9 4 u such documents for its own use. Contractor shall ensure all subcontractors to assign Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency 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 Agency, except as required by law or as authorized by the Agency. 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. 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 therefore. 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 Agency may take such immediate action as the Agency 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 party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. Agency may withhold from any monies payable to Contractor sufficient funds to compensate Agency for any losses, costs, liabilities or damages it reasonably believes were suffered by Agency 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 non defaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Contractor. Any waiver by either party of 10 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 Agency 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 Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owned the Agency 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 Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency of for any amount which 43 11 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 Agency 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. To Agency: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: Mark Weiss Assistant Executive Director To Contractor: McMurry, Inc 1010 E. Missouri Ave Phoenix, AZ 85014 Attention: Stephen Williams, Vice President 12 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: ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel Dated: MI. LA QUINTA REDEVELOPMENT AGENCY By: EXECUTIVE DIRECTOR Name: Title: Vice President/Business Development "CONTRACTOR" 13 EXHIBIT A SCOPE OF SERVICES EXHIBIT B SCHEDULE OF COMPENSATION EXHIBIT C KEY MARKETING INITIATIVES FLOW CHART r� 14 EXHIBIT A SCOPE OF SERVICES Provide general marketing communication services to the SilverRock Ranch Project for the first 18 months. Services are to include the following as per the "Key Marketing Activity Flow Chart" attached as Exhibit C: Marketing Initiatives Flow Chart / Revised Account Administration / Project Management including but not limited to: • Meetings • Phone Calls • Emails • Research • Co-ordination of and interaction with sub contractors • Preparation and submission of monthly status reports Collateral / Ad Development SilverRock Ranch will require a combination of usage -specific brochures and print media advertising creative as an integral part of the marketing campaign. Brochure requirements will include but are not limited to the following: A general, multi -page/ multi -use brochure to present to all interested, non -consumer entities, including: • Golf editors/writers • Golf event planners • Media (all types) • Event planners • Local groups • Business leaders • Allied businesses • Long-range hotel interests / solicitation • Long-range retail interest /solicitation The deliverable will be a printed brochure, printed in acceptable quantities that will fulfill the basic, common requirements of the above referenced As suitable long-range and in the latter months of this engagement, more short-term media opportunities become available, McMurry will produce print media advertisements in various sizes to conform to the mechanical specifications of selected media. The deliverable will be copies of the camera-ready advertising creative. Public Relations To expand on a limited paid advertising budget, McMurry will rely heavily on an ongoing Public Relations campaign. A monthly report will be issued that details the events, write-ups, strategic connections activated by the public relations effort. Advance 15 54 copies of the press releases, press events and the monthly report that documents these activities will be the deliverable. Direct Mail (local and regional golfers) To maximize the impact and avoid promotional waste, McMurry will capitalize on its internal database marketing capabilities and utilize direct mail as the principal approach to local and regional golfers. A detailed, strategic direct mail plan will be created and the plan combined with the direct mail printed piece will form the deliverable E-marketing (local and regional) As per the direct mail campaign identified above, McMurry will incorporate an e- marketing component. Utilizing the direct mail creative as a foundation, McMurry will develop an e-marketing campaign and e-creative to utilize the electronic mail infrastructure to deliver an appropriately timed e-message to golfers, both local and regional. The strategic a -plan and associated creative will be the deliverable. Media Strategy / Planning To ensure a logical, sequential roll out campaign, a detailed media plan will be developed by McMurry. The "plan", upon completion in hard copy format, will be the deliverable Website Design / Maintenance McMurry advocates that a SilverRock Ranch web site be created including a "live" web cam. The actual launch of the SRR web site will be the deliverable. McMurry has also budgeted for the traditional cost of maintaining the SRR web site throughout this initial engagement. Brand Strategy Prior to commencing promotion of the SRR development, a brand identity must be established. This experiential promise for the development must be articulated in print and becomes the essential criteria by which all on -going promotion must be developed. The written articulation of the brand strategy in hard copy will be the deliverable. Brand Identity The brand identity is the graphic "mock" that will be embodied on most if not all SRR promotion. The logo in final art and formatted for utilization in most required circumstances will be the deliverable Concept Development Concept Development involves the identifying of the appropriate graphic and verbal messaging and positioning of SRR. Using the Brand Strategy as its platform, concept development will include the writing of headlines, layout and design (rough), the writing of tag/positioning lines and the articulation of all this in all appropriate formats (print, collateral, web). The deliverable will be the submission of various "comp" campaigns (2-3) including all the above -mentioned items. `3 V 16 Database Marketing The actual database marketing initiative will occur in the latter months of this engagement. A printed document identifying the timeline strategy, database list and outbound creative will be the deliverable. Local Newspaper Promotion to Golf Consumers When the timing is appropriate, McMurry advocates the local newspapers as a preferred media to promote both the Grand Opening and on -going SRR activities. The media plan, creative executions and evidentiary tear sheets will be the deliverable. Local Promotion to Golf Wholesalers As the local golf wholesalers are "middlemen" or "valued added re -sellers", the multi purpose SRR brochure will need to be "adjusted" to reflect the advantageous of wholesale representation. Printed in small numbers but creatively persuasive, a copy of this collateral piece will be the deliverable. Local Promotion to Palm Springs Desert Resorts Convention and Visitors Authority As per the Golf Wholesalers collateral, the promotion to the local Conventions and Visitors authority will require specific "personalization". Supported by public relations efforts, copies of this specific purpose collateral and the fore mentioned monthly public relations report that will detail overtures specific to this influential entity will be the deliverable. Promotion to Hoteliers As the lead-time required by a hotel to make a commitment to a new venue is now several years, McMurry will utilize its influence and contacts in the prestige hotel industry to generate interest and excitement specific to the SRR development. We anticipate that hotel specific "adjusted" collateral will be required. Copies of the same and an hotelier engagement report will be the deliverable. 17 INNUIlaws SCHEDULE OF COMPENSATION Please see "Key Marketing Initiatives Flow Chart" Exhibit C attached. As the marketing activities are on -going and frequently man hours and materials are expended in advance of the date of activity/event occurrence, the following is recommended: 1.) On -going McMurry activities identified in the uppermost grouping to be compensated by way of a traditional agency monthly retainer in the amount of sixteen thousand one hundred and eleven dollars ($16,111), a total of two hundred ninety thousand dollars ($290,000) over 18 months. 2.) Extraordinary events or occurrences as represented by the lower grouping of activities be compensated at the time of the event/occurrence as identified within the attached flow chart. This amount is calculated at two hundred ten thousand dollars ($210,000) over 18 months. The total compensation is five hundred thousand dollars ($500,000) 3.) We have identified an additional fifty thousand dollars ($50,000) possible compensation to account for a two hundred twenty five thousand dollar ($225,000) value in the Ritz -Carlton and Arrive insertions. If accepted, this additional component would result in a total compensation amount of five hundred and fifty thousand dollars ($550,000). 18 A 14 r� LON 11111 i 1> �i 111H II 0 O 0 0 0 0 fiffl fill d 1.4d 44 as z. zw OD t t ZO 0 ow -4 W4 T4tyl 4 a:pQui�cfw COUNCIL/RDA MEETING DATE: November 18, 2003 ITEM TITLE: Approval of the Separately Issued La Quinta Redevelopment Agency Annual Audited Financial Statements for the Year Ended June 30, 2003 AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2003 (Attachment 1). FISCAL IM PLJCATIONS: None. BACKGROUND AND OVERVIEW: At the end of every fiscal year, the Redevelopment Agency prepares an audited financial report. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2003; or 2. Do not approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2003; or 3. Provide staff with alternative direction. Respectfully submitted, John M. FalconeIr, Finance Director Approved for submission by: Mark Weiss, Acting Executive Director Attachments: 1. Annual Audited Financial Statement for the Year Ended June 30, 2003 LA QUINTA REDEVELOPMENT AGENCY Financial Statements and Supplemental Data Year ended June 30, 2003 (with Independent Auditors' Report Thereon) 0-9 LA QUINTA REDEVELOPMENT AGENCY Financial Statements and Supplemental Data Year ended June 30, 2003 TABLE OF CONTENTS Page Independent Auditors' Report l Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 2 Statement of Activities 3 Fund Financial Statements: Governmental Funds: Balance Sheet 4 Reconciliation of the Balance Sheets of Governmental Funds to the Statement of Net Assets 6 Statement of Revenues, Expenditures and Changes in Fund Balances 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 10. Notes to the Basic Financial Statements 11 Required Supplementary Information: Notes to Required Supplementary Information 32 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual: Low/Moderate Income Housing Fund — PA No. 1 33 Low/Moderate Income Housing Fund — PA No. 2 34 Low/Moderate Bond Fund — PA No.1 35 Low/Moderate Bond Fund — PA No. 2 36 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 37 60 CONRADAND ASSOCIATES, L.L.P Board of Directors La Quinta Redevelopment Agency La Quinta, California CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT 2301 DUPONT DRIVE, SUITE 200 IRVINE, CALIFORNIA 92612 (949) 474-2020 Fax (949) 263-5520 We have audited the accompanying financial statements of the governmental activities and each major fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta, California as of and for the year ended June 30, 2003, which collectively comprise the Agency's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the management of the La Quinta Redevelopment Agency. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the La Quinta Redevelopment Agency at June 30, 2003, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. The La Quinta Redevelopment Agency has not presented Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The information identified in the accompanying table of contents as required supplementary information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. In accordance with Government Auditing Standards, we have also issued a report dated August 14, 2003 on our consideration of the Agency's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. August 14, 2003 61 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION LA QUINTA REDEVELOPMENT AGENCY Statement of Net Assets June 301, 2003 Governmental Activities 2003 2002 Assets: Cash and investments (note 2) $ 35,99110319 21,3583p275 Accounts receivable 13931347 1661P984 Notes receivable (note 3) 1276133,565 1225099966 Deposits 18510000 - Due from the City of La Quinta - 2,294,106 Due from other governments 5511,789 693,210 Advances to the City of La Quinta (note 4) 4292130720 1,2492728 Restricted assets: Cash and investments with fiscal agent (note 2) 3070192213 39514472831 Capital assets (note, 5): Land 51,450,306 51,450,306 Other capital assets, net 616,000 64421000 Total assets 1363.488,259 129,814,406 Liabilities: Accounts payable 210368,690 197,189 Interest payable 2,7677256 2302222309 Deposits payable 473P144 15,788 Due to the City of La Quinta - 2,8052860 Noncurrent liabilities (notes 7 to 12): Due within one year 31P196,877 23,5372918 Due in more than one year 172,9773863 16730496,980 Total liabilities 181,357,830 175,2762044 Net assets: Invested in capital assets, net of related debt - 1,1822033 Restricted for: Low moderate housing 20,5.923059 203P6171P434 Capital projects 44,167,562 39,769,632 Unrestricted (109,629,192) (107,030,737) Total net assets $ (44,8693,571) (4524612638) See accompanying notes to the basic financial statements. 2 �:. LA QUINTA REDEVELOPMENT AGENCY Statement of Activities Year ended June 30, 2003 Program Revenues Operating Capital Charges for Contributions Contributions Governmental Activities Expenses Services and Grants and Grants 2003 2002 Governmental activities: Palming and development $ 43-0013,911 - - 593,738 (3,408,173) (4,980,581) Low and moderate housing 93-0223,696 - - 343,569 (8,988,127) (2,084,867) Interest expense 92-6223,415 - - - (9,622,415) (7,387,676) Total governmental activities $ 22,647,022 628,307 (22,018,715) (14,453,124) Property taxes Investment income Rental income Gain (loss) on sale of capital assets Miscellaneous revenues Total general revenues Change in net assets Net assets (deficit) at beginning of year Net assets (deficit) at end of year 21,191,832 18,899,329 6663-854 761,259 4153%555 321,145 - (21,397) 3363,541 253,417 22.610.782 19.985.753 5923,067 52532,629 (45,461,638) (50,994,267) $ (44,8692571) (452461,638) See accompanying notes to the basic financial statements. E3 3 LA QUINTA REDEVELOPMENT AGENCY Governmental Funds - Balance Sheet June 3022003 Special Revenue Funds Low/Moderate Low/Moderate Low/Moderate Low/Moderate Income Housing - Income Housing - Bond - Bond - Assets PA No. 1 PA No. 2 PA No. 1 PA No. 2 Cash and investments $ 12714,382 5,9532126 741606 - Cash and investments with fiscal agent - - 17 = Accounts receivable 7811,447 - - - Notes receivable 3211331565 925002000 - - Deposits 1853,000 - - - Due from other funds - - - - Due from the City of La. Quinta - - - - Due from other governments 622232 482126 - - Advances to other funds - - - - Advances to the City of La Quinta - - - - Total assets $ 52153,626 15,501,252 742623 - Liabilities and Fund Balances Liabilities: Accounts payable $ 25,168 182342 - - Deferred revenue 9951979 925002000 - - Deposits payable 192309 - - - Due to other funds - - - - Due to the City of La Quinta - - - - Advances from other funds - - - - Advances from the City of La Quinta - - - - Total liabilities 120402456 9,518,342 - - Fund balances: Reserved for: Bond projects - - - - Debt service - - - - Notes receivable 2,11725 86 - - - Deposits 1852000 - - - Advances to other fimds - - - - Advances to the City of La Quinta - - - - Unreserved, reported in: Special revenue fiends 128102584 5298211910 741623 - Debt service funds - - - - Capital projects funds - - - - Total fund balances 421131170 5,9822910 74,623 - Total liabilities and fimd balances $ 52153,626 1525012252 74,623 - See accompanying notes to the basic financial statements. 4 64 Debt Service Funds Capital Projects Funds Redevelopment Redevelopment Redevelopment Redevelopment Agency - Agency - Agency - Agency - Totals 131817,453 5218550371 2,098 164 2481927 1922504 14310682478 52378,039 2921097 12982,545 1125032322 9305782000 113,7952419 112560,545 7,2851910 30,016,934 31811,874 41,114,718 24,185 24,185 - - 30.1016.1934 2,273,059 - - 328112874 2,273,059 14,068,478 (6,1823,506) (6,182,506) 5,378,039 7,261,725 41,090,533 41,1142718 FA No. 2 2003 2002 1,960,471 3519912319 21,3582275 - 303,0192213 39,447,831 60,900 139,347 166,984 - 12.46132565 132215,806 - 185,000 - - - 2,538 - - 210294,106 - 55151789 6932210 - - 39,135 1,109,846 4,921,720 122492728 321311217 . 842421,953 78346 ' 613 26,353 2.436831690 1972189 - 1024952979 11207931695 273835 47,144 151788 - - 2,538 - - 228052960 39,135 - 21300812322 12,5212890 543,188 3311993,135 2616621095 - 3020162934 37.10882695 - 2.1273.1059 439852471 - 221172586 2,136,111 - 185,000 - - - 39,135 - 32811,874 122492728 - 731868.1117 1015069935 - (611822506) (52622,884) 33,0773,029 10,33 8,754 124223,327 32077,029 50,428,818 51,8051518 3,131,217 841,421,953 78,467,613 5 65 LA QUINTA REDEVELOPMENT AGENCY Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 3022003 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets Accumulated depreciation Long term debt from the General Long Term Debt Account Group that have not been included in the governmental fund activity. Accrued interest payable for the current portion of interest due on Long term debt has not been reported in the governmental funds. $ 5024282818 52,290,306 (224,000) (155,093,418) (2,767,256) Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. 1010495,979 Net assets of governmental activities $ (44,869,571) See accompanying notes to the basic financial statements. 6 e� LA QUINTA REDEVELOPMENT AGENCY Governmental Fund Types Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2003 Special Revenue Funds Low/Moderate Low/Moderate Low/Moderate Low/Moderate Income Housing - Income Housing - Bond - Bond - PA No. 1 PA No. 2 PA No. 1 PA No. 2 Revenues: Taxes $ 551271,524 224792241 - - Developer fees - - - - Investment income 36,406 1293,263 11,949 2,898 Rental income 376,863 - - - Miscellaneous revenues 2802752 - - - Total revenues 5309652545 2,608,504 11,949 22898 Expenditures: Current: Planning and development 4210331060 7652795 - - Debt service: Principal - - - - Interest - - - - Payments under pass -through obligations - - - - Total expenditures 4,1032060 765,795 - - Excess (deficiency) of revenues over (under) expenditures 12862,485 128423,709 1111949 22898 Other financing sources (uses): Proceeds of tax allocation bonds - - - - Sale of capital assets - - - - Transfers in (note 14) - - - - Transfers out (note 14) (1,738,783) (338,895) - - Transfers from (to) the City of La Quints (1,548,018) 226 99 - (2,378,826) Total other financing sources (uses) 3,286 801 565 892 - 2 378 826 Net change in fund balances (13,424,316) 122761817 11,949 (2,375,928) Fund balances (deficit) at beginning of year 53,53731486 43,7062093 62A674 2,375,928 Fund balances (deficit) at end of year $ 43P113,170 5298230910 742623 - See accompanying notes to the basic financial statements. 8 67 Debt Service Funds Capital Projects Funds Redevelopment Redevelopment Redevelopment Redevelopment Agency - Agency - Agency - Agency - Totals PA No. 1 PA No. 2 PA No. 1 PA No. 2 2003 2002 2120862099 95,9163,962 - - 3817531826 321,0568,495 _ _ - - - 482584 204,789 67,844 6522611 672277 1.11732037 126352997 _ - 382692 - 415,555 3213,145 552789 - 336,541 251417 2122903,888 9,984,806 747,092 67,277 4016782959 34,599,638 3162,567 14930787 13,559,307 2172599 721122115 9119491737 22264,940 2722978 - - 2,537.4918 11,0743,078 7,4912294 124672846 - - 83,09592140 625412998 9,669,282 7,892,712 - - 17315612994 1326692166 193,74250083 9307832323 1,559,307 2173,599 3621713,167 4122342979 125482805 2012483 (812,215) (150,322) 4305071792 (6,635,341) 88300001000 _ _ _ - - 146)603 1273811783 3382895 620002000 13,1002000 93,1772678 11304287733 (6,0003,000) (1,100,000) - - (9,177,678) (11,428,733) _ - (1,939,564) 2082913 (5,884,492) (47,639,30 (4 2261217) (761,105) 44060,436 11308,913 (5,884,492) 40,5072296 (2,712,412) (559,622) 312483,221 13,1583,591 (1,376,700) 33,8713,955 419852471 5 622 884 37,842,312 119182438 51,805,518 17319332563 21273,059 (6,182506 411V090,533 3,077,029 50104281818 5151805,518 E 9 LA QUINTA REDEVELOPMENT AGENCY Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2003 Net changes in fund balances - total governmental funds $ (123765,700) Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. (283,000) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal repayment 21)537,918 Amortization of bond costs (1181,328) The statement of net assets includes accrued interest on long term debt. (544,947) Revenues that are measurable but not available. Amounts are not recorded as revenues under the modified accrual basis of accounting. 122,124 Changes in net assets of governmental activities $ 592,067 See accompanying notes to the basic financial statements. 10 W LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements Year ended June 30, 2003 (1) Summary of Significant Accounting Policies The following is a summary of the significant accounting policies of the La Quinta Redevelopment Agency: (a) Organization and Tax Increment Financing Redevelopment Goals and Objectives The general objective of the Redevelopment Plan adopted by the Agency is to encourage investment in the Redevelopment Project Areas by the private sector. The Redevelopment Plan provides for the demolition of buildings and improvements, the relocation of any displaced occupants, and the construction of streets, parking facilities, utilities and other public improvements. The Redevelopment Plan also includes the ability to redevelop land by private enterprise or public. agencies, the rehabilitation of structures, the rehabilitation or construction of single family and low and moderate income housing, and participation by owners and tenants of properties in the Redevelopment Project. Redevelopment Project Areas The Agency has established two redevelopment project areas. On November 29, 1983 the City Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 1. On May 16, 1989 the City Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2. These plans provide for the elimination of blight and deterioration that was found to exist in the project areas. Tax Increment Financing The Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a redevelopment project. The assessed valuation of a redevelopment project last equalized prior to adoption of a redevelopment plan or amendment to such redevelopment plan, or "base roll", is established and, except for any period during which the assessed valuation drops below the base year level, the taxing bodies, thereafter, receive the taxes produced by the levy of the current tax rate upon the base roll. Taxes collected upon any increase in assessed valuation over the base roll ("tax increment") are paid and may be pledged by a redevelopment agency to the repayment of any indebtedness incurred in financing or refinancing a redevelopment project. Redevelopment agencies themselves have no authority to levy. property taxes. 11 70 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus The basic financial statements of the Agency are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its discreetly presented component units. The La Quinta Redevelopment Agency has no business -type activities or discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the Agency. The accompanying government -wide financial statements for the Agency present negative net assets because the primary activity of the Agency is to issue debt to construct infrastructure that will be owned and maintained by the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the gbvernment-wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 3 3. 12 71 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Program revenues include charges for services and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Fund Financial Statements The underlying accounting system of the Agency is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds primarily represent assets held by the Agency in a custodial capacity for other individuals or organizations. The Agency has no nonmajor funds, enterprise funds, or fiduciary funds. Governmental Funds In the fund financial statements, governmental funds and agency funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Agency uses a sixty day availability period. 13 7� LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Revenue. recognition is. subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non -exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non -current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. 14 73 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (c) Major Funds The following funds are presented as major funds in the accompanying basic financial statements: Special Revenue, Low and Moderate Income Housing P.A. No. _ 1 and No. 2 Funds — To account for the required 20% set aside of property tax increments that is legally restricted for increasing or improving housing for low and moderate income households. Special Revenue, Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds — To account for bond proceeds and expenditures of bond -financed low and moderate income housing programs. Debt Service Funds, P.A. No. 1 and No. 2 — To account for the accumulation of resources for the payment of debt service for bond principal, interest and trustee fees. Capital Projects Funds, P.A. No. 1 and No. 2 — To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. (d) Cash and Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. (e) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed fixed assets are valued at their estimated fair market value at the date of the contribution. Generally, fixed asset purchases in excess of $500 are capitalized if they have an expected useful life of three years or more. Buildings are depreciated over a useful life of thirty years. Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. 7W 15 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments Cash and investments held by the Agency at June 30, 2003 consisted of the following: Equity in State of California Local Agency Investment Fund $ 624203,320 Equity in City cash and investment pool 29,570,999 Total cash and investments held by the Agency 135,991,319 Cash and investments held by fiscal agent at June 30, 2003 consisted of the following: U.S. Treasury Bill $291,002,448 Mutual funds - First American Treasury Obligations 1,016,765 Total cash and investments held by fiscal agent $30,019,213 The Agency is authorized by the City's investment policy to invest in the following types of investments: Investment Type U.S. treasuries and GNMA FHLB, FFCB, FLB, FICB, FNMA, FHLMC Student Loan Marketing Association Government Pools U.S. government and agency securities Commercial Paper Mutual Funds Certificates of Deposit Restriction None $5 million per issuer $3 million $40 million and 20% of portfolio 100% of portfolio $3 million per issuer, and 90 days 20% 60% Investments of cities in securities are classified in three categories to give an indication of the level of custodial risk assumed by the entity. Category 1 - includes investments that are insured or registered or for which the securities are held by the Agency or the Agency's custodial agent (which must be a different institution other than the party through which the Agency purchased the securities) in the Agency's name. Investments held "in the Agency's name" include securities held in a separate custodial or fiduciary account and identified as owned by the Agency in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the Agency's name by the dealer's agent (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the Agency.) 16 75 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Category 3 - includes uninsured and unregistered investments for which the securities are held by the dealer's trust department or agent, but not in the Agency's name. Category 3 also includes all securities held by the broker -dealer agent of the Agency (the party that purchased the securities for the Agency) regardless of whether or not the securities are being held in the Agency's name. Carrying Category Amount 1 2 3 U.S. Treasury Bill 29 002 44 293,0025,448 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund 6,4205320 Equity in City cash and investment pool 2995702999 Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 1,016,765 $ 66,010,532 The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based. on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage - backed securities, other asset -backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, and corporations. we 17 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements. (Continued) Outstanding (3) Notes Receivable Balance at June 30, 2003 In September 1994, the Agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, $ 3,031,367 2029. In December 2000, the Agency entered into an agreement with DC&TC, LLC to receive $9,500,000 as a reimbursement for Agency costs incurred for the construction of infrastructure related to the development of senior apartments. Payments are due to the Agency in the amount of annual positive cash flow generated by the rental of the units. All unpaid principal and interest on the note are due fifty-five years after the completion of the project. Interest on the note accrues at three percent per 9,500,000 annum. Other notes receivable 82,198 Total notes receivable $ 122613,565 (4) Advances to the City of La Quinta The Redevelopment Agency advanced funds to the City of La Quinta to help the City meet the cost of developing the public -owned improvements to the La Quinta Community Park and Civic Center Campus. There is no stipulated repayment date established for the Agency advances. Interest accrues at the earning rate of City's Investment Pool funds, and shall be adjusted quarterly. At June 30, 2003, outstanding Project Area No. 1 advances were $3,811,874 and Project Area No. 2 advances were $1,109,846. 18 77 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (5) Capital Assets Capital asset activity for the year ended June 30, 2003 was as follows: Balances at Balances at June 30, 2002 Additions Deletions June 30, 2003 Buildings $ 840,000 - - 840,000 Total cost of depreciable assets 840,000 - - 840,000 Less accumulated depreciation for: Buildings (196,000) (28,000) - (224,000) Net depreciable assets 6441,000 (289,000) - 616,000 Capital assets not depreciated: Land 51,450,306 - - 51,450,306 Capital assets, net $52.094,306 --28 „OOQ) 52.066.306 6) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary source of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. 19 78 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (6) Property Taxes, (Continued) The Agency has no power to levy and collect taxes and any legislative properly tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. (7) Long -Term Liabilities Long-term liability activity for the year ended June 30, 2003 was as follows: Project Area No. 1: 1994 Tax Allocation Bonds 1995 Housing Tax Allocation Bonds 1998 Tax Allocation Bonds 2001 Tax Allocation Bonds 2002 Tax Allocation Bonds Pass -through agreement payable: Coachella Valley Unified School District Advances from City of La Quinta Project Area No. 2: 1995 Housing Tax Allocation Bonds 1998 Tax Allocation Bonds Due to County of Riverside Advances from City of La Quinta Total long-term liabilities Amounts Balance at Balance at due within June 30, 2002 Additions Deletions June 30, 2003 one year S 19,670,000 - (1,260,000) 18,410,000 1,325,000 16,333,872 - (307,022) 16,026,850 318,831 15,760,000 - - 15,760,000 46,124,932 64,658 - 46,189,590 - 38,389,904 53,670 - 38,443,574 565,000 8,063,172 - (697,918) 7,365,254 711,877 4,907,565 6,595,757 - 11,503,322 - 4,416,128 - (82,978) 4,333,150 86,169 6,505,000 - (90,000) 6,415,000 90,000 2,250,000 - (100,000) 2,150,000 100,000 7,614,325 1,%3,675 8-67� 60 - 9,579,000 126,174,2412 3-1�96.8�77 (2,537.918) $129,934,828 20 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds Tax Allocation Refunding Bonds, Series 1994 Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds ranges from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $18,410,000. Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 1 Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues. There are certain limitations regarding the issuance of parity debt as further described in the official statement. Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2013 and on each .September 1 thereafter, through September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $15,7601000. Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remauung proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. 21 3 1 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) Interest rates on the bonds range from 3.75% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues of Project Area No. 2. Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $6,415,000. Tax Allocation Bonds, Series 2001— Project Area No. 1 On August 15, 2001, the Agency issued tax allocation bonds in the amount of $48,000,000 to finance capital projects benefiting the La Quints Redevelopment Project Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and issuance costs of $1,517,325. The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature on September 1, 2021 and $30,720,000 of term bonds that accrue interest at 5.18% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $465,18%590 ($48,000,000 net of unamortized discount and issuance costs of $1,810,410). Tax Allocation Bonds, Series 2002 — Project Area No. 1 On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000 to finance capital projects benefiting the La Quints Redevelopment Project Area No. 1. The 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of $1,250,096. At June 30, 2003, the unexpended balance of bond proceeds is $1,014,486. The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. Term bonds accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The interest and principal on the bonds are payable from pledged tax increment revenues. 22 81 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $3824433,574 ($40,000,000 net of unamortized discount and issuance costs of $1,556,426). 23 4w LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds. (Continued) The minimum annual requirements (including sinking fund requirements) to amortize tax allocation bonds as of June 30, 2003 are as follows: Project Area No. 1 Projed Area No. 2 1994 Tax Allocation Bonds 1999 Tax Allocation Bonds 2001 Tax Allocation Bonds 2002 Tax Allocation Bonds 1999 Tax Allocation Bonds June 30 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2004 S 1,325,000 1,274,465 - 919,520 - 2,430,720 565,000 1,905,925 90,000 327,090 2005 1,430,000 1,192,140 - 819,520 - 2,430,720 575,000 1,895,131 95,000 323,264 2006 1,510,000 1,087,700 - 819,520 - 2,430,720 585,000 1,882,361 100,000 319,169 2007 1,620,000 973,455 - 819,520 - 2,430,720 600,000 1,967,091 105,000 314,785 2008 1,740,000 850,815 - 819,520 - 2,430,720 615,000 1,949,617 110,000 310,135 2009 1,865,000 719,233 - 819,520 - 2,430,720 635,000 1,829,914 115,000 305,184 2010 2,000,000 579,160 - 819,520 - 2,430,720 660,000 1,907,557 120,000 299,550 2011 2,145,000 426,868 - 819,520 - 2,430,720 680,000 1,792,926 125,000 293,272 2012 2,305,000 264,443 - 819,520 - 2,430,720 705,000 1,756,430 130,000 286,737 2013 2,470,000 90,155 - 819,520 - 2,430,720 735,000 1,727,981 140,000 279,819 2014 - - 655,000 802,490 1,565,000 2,391,595 705,000 1,695,656 145,000 272,516 2015 - - 690,000 767,520 1,645,000 2,311,345 735,000 1,659,656 150,000 264,956 2016 - - 725,000 730,730 1,730,000 2,226,970 770,000 1,622,031 160,000 257,013 2017 - - 765,000 691,990 1,815,000 2,139,345 810,000 1,592,531 170,000 248,556 2018 - - 800,000 651,300 1,905,000 2,045,345 955,000 1,540,906 175,000 239,716 2019 - - 945,000 608,530 2,000,000 1,947,720 895,000 1,497,156 185,000 230,491 2020 - - 890,000 563,420 2,100,000 1,845,220 940,000 1,451,291 195,000 220,631 2021 - - 935,000 515,970 2,205,000 1,737,595 985,000 1,403,156 205,000 210,131 2022 - - 985,000 466,050 2,315,000 1,624,595 1,035,000 1,352,656 215,000 199,106 2023 - - 1,035,000 413,530 2,430,000 1,504,755 1,090,000 1,299,531 230,000 187,425 2024 - - 1,090,000 358,290 2,555,000 1,377,637 1,140,000 1,243,069 240,000 175,087 2025 - - 1,145,000 300,170 2,685,000 1,244,018 1,200,000 1,193,106 255,000 162,094 2026 - - 1,205,000 239,070 2,820,000 1,103,640 1,265,000 1,119,941 265,000 149,444 2027 - - 1,265,000 174,850 2,965,060 956,123 1,330,000 1,053,444 290,000 134,138- 2028 - - 1,330,000 107,380 3,120,000 900,955 1,395,000 993,615 295,000 119,044 2029 - - 1,400,000 36,400 3,275,000 637,992 1,470,000 910,200 310,000 103,163 2030 - - - - 3,445,000 466,523 3,015,000 795,272 325,000 86,494 2031 - - - - 3,620,000 286,365 3,170,000 636,781 345,000 68,906 2032 - - - - 3,805,000 97,027 3,335,000 470,091 360,000 50,400 2033 - - - - - - 7,505,000 192,316 380,000 30,975 2034 - - - - - - - - 400,000 10,500 S 18,410,000 7,447,434 15,760,000 15,622,980 48,000,000 51,050,855 40,000,000 41,997,228 6,415,000 6,479,780 24 834 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) 9) 1995 Housing Tax Allocation Bonds La Quinta Redevelopment Project Areas Nos. 1 and 2 1995 Housing Tax Allocation Bonds, were issued by the Agency, July 1, 1995, in the amount of $22,455,000 to increase, improve and/or preserve the supply of low and moderate income housing in the City. Interest is payable semi-annually on March 1 and September 1 of each year commencing March 1, 1996. Interest payments range from 4% to 6% per annum. The interest and principal of the bonds are payable from pledged tax increment revenues of both project areas. Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1, thereafter, through September 1, 2025, at a price equal to the principal amount plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of panty debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2003 is $20,360,000. 25 84 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (9) 1995 Housing Tax Allocation Bonds, (Continued) The minimum annual requirements (including sinking fund requirements) to amortize housing tax allocation bonds as of June 30, 2003 are as follows: 1995 Housing TAB's June 30 Princi al Interest 2004 $4059000 191835,538 2005 4259000 19162,990 2006 4503,000 191409890 2007 530,000 12115,502 2008 5603,000 190869470 2009 5909000 1,055,125 2010 6202000 1,0215,540 2011 6552000 9859840 2012 6953,000 946,650 2013 7353,000 9032750 2014 7803,000 8582300 2015 8252000 810,150 2016 8753,000 7599150 2017. 9252000 705,150 2018 9851,000 6473,850 2019 11040,000 5872100 2020 13,1052000 522,750 2021 1,170,000 454,500 2022 122409000 3823,200 2023 13,3153,000 3052550 2024 1,395,000 2243,250 2025 1,4752000 1382150 2026 1,565,000 46,950 20,360,000 17,044,345 26 85 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (10) Due to County of Riverside Project Area No. 2 Based on an agreement dated July 5, 1989 between the Agency and the County, until the tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the County 50% of the County portion of tax increment. At the County's option, the County's pass -through portion can be retained by the Agency to finance new County facilities or land costs that benefit the County and serve the La Quinta population. Per the agreement, the Agency must repay all amounts withheld from the County. The tax increment is to be paid to the County in amounts ranging from $100,000 to $250,000 over a payment schedule through June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 2003 is $2,150,000. The minimum annual requirement to amortize due to County of Riverside as of June 30, 2003 are as follows: June 30 Principal 2004 $1001,000 2005 1002000 2006 1001,000 2007 1003,000 2008 1509000 2009 2003,000 2010 2005000 2011 2005000 2012 2503,000 2013 2503,000 2014 2502000 2015 250.000 2 15 000 (11) Notes Payable to Coachella Valley Unified School District An agreement was entered into in 1991 between the Agency, the City of La Quinta and the Coachella Valley Unified School District (District), which provides for the payment to the District a portion of tax increment revenue associated with properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012 in amounts ranging from $474,517 to $834,076 for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 2003 totaled $7,365,254. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school buses, expansion or rehabilitation of current facilities. 27 86 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (11) Notes Payable to Coachella Valley Unified School District, (Continued) The minimum annual requirements to amortize payable to Coachella Valley Unified School District as of June 30, 2003 are as follows: June 30 Principal 2004 $ 7112877 2005 7269114 2006 7401,636 2007 755,449 2008 7703,558 2009 7853,968 2010 8013,688 2011 8172722 2012 8342076 2013 421,166 $7 365 254 0 2) Advances from the City of La Quinta The City of La Quinta advances money to the Redevelopment Agency to cover operating and capital shortfalls. There is no stipulated repayment date established for the City advance. Interest accrues at 10% per annum. At June 30, 2003, the outstanding balances for Project Area No. 1 and Project Area No. 2 are $5,398,322 and $9,578,000, respectively. In addition, the City of La Quinta advanced money to Project Area No. 1 in the amount of $6,105,000 with interest accruing at 7% per annum. The maturity date for this advance is November 29, 2033. (13) Pledged Tax Revenues All tax revenues received by the Agency other than the amount required by law to be deposited in a low and moderate income housing fund, are required to be used to meet debt service requirements of the bond indentures before any payments may be made on other obligations of the Agency. 28 87 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (14) Transfers In and Out The following transfers were made during the year ended June 30, 2003: Transfers to the Debt Service — Project Area No.1 Fund from: Special Revenue — Low/Moderate Income Housing — Project Area No. 1 $ 1,738,783 (A) Transfers to the Debt Service — Project Area No. 2 Fund from: Special Revenue — Low/Moderate Income Housing — Project Area No. 2 338,895 (A) Transfer to the Capital Project — Project Area No. 1 Fund from: Debt Service — Project Area No. 1 6,0005,000 (B) Transfer to the Capital Project — Project Area No. 2 Fund from: Debt Service — Project Area No. 2 1,100,000 (B) Total transfers $ 9,177.678 (A) $1,738,783 and $338,895 were transferred to the Debt Service — Project Area No. 1 and 2 Funds from the Low/Moderate Income Housing — Project Area No. 1 and 2 Funds for debt service payments on the 1995 Housing Tax Allocation Bonds. (B) Proceeds of advances were transferred to the respective Capital Projects Funds to provide financing for certain capital projects. 15) Educational Revenue Augmentation Fund (ERAF) Payment During fiscal year ended June 30, 2003, Chapter 1127 of the 2002 Statutes of the State of California require redevelopment agencies to shift $75 million in property tax revenue to kindergarten through twelfth grade schools and community colleges. The State Department of Finance has determined that the La Quinta Redevelopment Agency amount is $723,518 of the $75 million which was forwarded to the Riverside County Auditor in accordance with the statute. 29 88 REQUIRED SUPPLEMENTARY INFORMATION t 30 813 LA QUINTA REDEVELOPMENT AGENCY Notes to Required Supplementary Information Year ended June 30, 2003 1) Budeets and Budgetary Accountin The Agency adopts an annual budget prepared . on the modified accrual basis of accounting for its governmental funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund are approved by City Council. Appropriations were $3,318,296 during the year. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. 32 90 LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Income Housing Fund - PA No. 1 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 3022003 Revenues: Taxes Developer fees Invest income Rental income Miscellaneous revenues Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 4,512,181 520352033 522712524 236,491 424882487 - - - - 482584 200,000 200,000 362406 (163,594) 266,302 3412000 3412000 3762863 352863 3212145 - - 280,752 28%752 252418 520532181 5,5762033 529652545 3891512 5,149,936 42339,700 7,5451,700 4,103,060 3,442,640 337291333 4,339,700 7,545,700 4,103,060 3,442,640 3,7292333 7132,481 (1,969,667) 1,862,485 318325,152 1,420,603 1502000 1502000 - (150,000) 1462603 - 1,825,000 - (1,825,000) - (1,738,783) 3 953 426 (3,286,801) 666,625 (1,737,006) (1,5881783) 1 978 426 3 286 801 (1,3083,375) (1,590,403) (875,302) (3,948,093) (1,424,316) 23152331777 (169,800) 525371V486 525372486 5,537,486 - 5,707,286 $ 4,662,184 125891393 4,113,170 22523,777 5315372486 _ 33 LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Income Housing Fund - PA No. 2 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year -Original Final Actual Positive (negative) Actual $ 1,896,343 23,3603,051 21,47911241 119,190 2,025,212 201,700 382207 12931263 917056 1157747 1,917,043 2213982258 2,608,504 210,246 2,140,959 1,771,247 1,88331543 765,795 1,771,247 11P88331543 7653,795 1452796 5141,715 1,842,709 121172748 121172748 682,702 6822702 123272994 124583,257 801,358 - (801,358) - 163,964 191,861 21,897 (338,442) 338,895 4,448,587 585,753 37862,834 (164,568 338,895 3,6301,265 565,892 (193,099) (3,115$50) 1,276,817 41170611093 42706,093 4,70651093 $ 4151231994 13p590,543 539822910 3,064,373 4,392,367 4,392,367 �503,010 955,247 3,750,846 427062093 92 34 LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Bond Fund - PA No. 1 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 111,949 111949 62,674 Total revenues - - 11,949 11,949 62,674 Other financing sources (uses): Transfers to the City of La Quinta - - - - 832 930 Total other financing sources (uses) - - - - 832 930 Net change in fund balances - - 112949 11,949 (7703,256) Fund balances at beginning of year 62,674 62,674 62,674 - 832,930 Fund balances at end of year 62,674 62,674 74,623 11,949 62,674 93 35 LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Bond Fund - PA No. 2 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 2,898 2,898 16,964 Total revenues - - 2,898 2,898 161964 Other financing sources (uses): Transfers to the City of La Quints. - 2 375 928 2 378 826 Total other financing sources (uses) - (2,375,928) (2,3782826 Net change in fund balances - (22375,928) (22375,928) Fund balances at beginning of year 2,375,928 2,375,928 2,3752928 Fund balances at end of year $ 2,375,928 - - (2,890 (223,917) (2,898) (223 917 (206,953) 2,582,881 2,375,928 94 36 CONRADAI%O CERTIFIED PUBLIC ACCOUNTANTS 2301 DUPONT DRIVE SUITE 200 ASSOCIATES, L.L.P. IRVINE, CALIFORNIA 92612 (949) 474-2020 Board of Directors Fax (949) 263-5520 La Quinta Redevelopment Agency La Quinta, California REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEIViENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS We have audited the financial statements of the La Quinta Redevelopment Agency as of and for the year ended June 30, 2003, and have issued our report thereon dated August 14, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the financial statements of the La Quinta Redevelopment Agency are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the La Quinta Redevelopment Agency's internal control over financial reporting in order to determine our auditingprocedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Audit committee, management, and the State Controller and is not intended to be and should not be used by anyone other than those specified parties. &;,'.J4"1145sa-e-ra-&1.7 l L.L.f' August 14, 2003 37 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 95 MEMBER OF AMERICAN INSTITUTE 00 CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION Tjitil 4 ra COUNCIL/RDA MEETING DATE: November 18, 2003 ITEM TITLE: Approval of a Professional Services Agreement with the Dahlin Group to Provide Building Architectural Services for SilverRock Ranch RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: �- CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a professional services agreement with the Dahlin Group to provide building architectural services for the SilverRock Ranch project, and authorize the Acting Executive Director to execute the contract. FISCAL IMPLICATIONS: The City's Capital Improvement Program includes the SilverRock Ranch project and has budgeted $4,459,000 for professional services, including $212,000 for design fees for a temporary clubhouse, restrooms, maintenance facility, and pump house. The contract with the Dahlin Group is for a not -to -exceed fee of $212,000. BACKGROUND AND OVERVIEW: On August 5, 2003 the Agency Board authorized the distribution of a Request for Proposals (RFP) for Building Architectural Services (Phases IA and IB) for the SilverRock Ranch project. Proposals were due September 15, 2003, and six firms submitted proposals. The Agency's consultant selection committee interviewed all six firms on September 25, 2003, including (in alphabetical order): Dahlin Group, IDS/B Inc., John Bates Associates, McFadden McIntosh, Melzer, Deckert & Ruder Architects, and Pearson & Associates. The consultant selection committee ranked the firms, opened sealed cost proposals, and recommended the Dahlin Group and Melzer, Deckert & Ruder Architects for interviews with the Agency Board. The interviews were conducted on October 16, 2003. The Agency Board selected the Dahlin Group and directed staff to negotiate a contract for Building Architectural services. 96 Staff has completed negotiations, and the terms and conditions are set forth in the Professional Services Agreement (Attachment 1). The fee for service is in an amount not -to -exceed $212,000. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a professional services agreement with the Dahlin Group to provide building architectural services for the SilverRock Ranch project, and authorize the Acting Executive Director to execute the contract; or 2. Do not approve a professional services agreement with the Dahlin Group to provide building architectural services for the SilverRock Ranch project, and do not authorize the Acting Executive Director to execute the contract; or 3. Provide staff with alternative direction. Respectfully submitted, r Mark Weiss, Acting Executive Director Attachments: 1. Professional Services Agreement 2 97 Attachment 1 PROFESSIONAL SERVICES AGREEMENT This AGREEMENT FOR PROFESSIONAL SERVICES (the "Agreement"), is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY (the "Agency"), and The Dahlin Group. (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 Agree- ment, the Contractor shall provide those services related to Building Architectural services for 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 herein as the "Agency." 1.2 Contractor's Proposal. The Scope of Services shall include the Contractor's proposal or bid, 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. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the Agency, 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, including, but not limited to, a business license and the other licenses necessary to perform the services rendered under 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 to obtain the licenses and permits 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 Agency, it shall immediately inform Agency 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). 3 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the architectural plans and specifications it prepares pursuant to this Agreement. 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 Contractor shall be compensated in an amount not exceeding Two Hundred twelve thousand Dollars ($212,000) (the "Contract Sum"). The method of compensation set forth in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to the Agency no later than the tenth (10 ) 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 describe in detail the percentage complete of the services provided by tasks set forth in Exhibit B. 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 that 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. The Contract Officer shall have the authority to extend the time for performance if he determines such an extension is in the best interest of the Agency. Such extensions shall not be effective unless issued in writing and executed by the Contract Officer. 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 periods specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to 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, 4 99 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 their 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. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.8 of this Agreement, this Agreement shall continue in full force and effect until December 31, 2004. In the event that the construction of the structures being designed by Contractor is not completed by December 31, 2004, Contractor agrees to continue to provide the services outlined in the Scope of Service from December 31, 2004, until the certificate of occupancy is issued for the last structure designed by Contractor, and that the compensation agreed to in this Agreement shall be inclusive of the services performed after December 31, 2004. All services provided after December 31, 2004, shall be in accordance with the terms and conditions 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 the work specified herein and make all decisions in connection therewith: 1. Jack Gallagher 2. Karl Danielson It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for Agency 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 Agency. 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 Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, Wi 100 knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the Agency 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 Agency. 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 Agency. 4.4 Independent Contractor. Neither the Agency 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 Agency. 4.5 Agency Cooperation. The Agency 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 Agency. 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 Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency 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 $501,000-$3009000 $250,000 per individual; $500,000 per occurrence Over $300,000 $500,000 per individual; $1,000,000 per occurrence C1i 101 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 Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. 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 Agency. The amount proposed by Contractor of $1,000,000 per claim and $2,000,000 per year aggregate has been determined to be acceptable. 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 Agency. 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 Agency, its officers, employees, contractors, subcontractors or agents. 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency, its officers, officials, employees, representatives and agents, ("Agency indemnitees"), 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 Agency) ("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 Agency's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the Agency indemnitees 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 Agency indemnitees, or at the Agency's option, reimburse the Agency indemnitees their costs of defense, including reasonable attorney's fees, incurred in defense of such Claims. In addition contractor shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency indemnitees. 7 102 5.3 Remedies. In addition to any other remedies the Agency 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 Agency, 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 Agency may have and are not the exclusive remedies for Contractor's failure to maintain or- secure 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 Agency and shall be delivered to Agency 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 Agency of its full rights of 8 16 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 Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency 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 or Agency, except as required by law or as authorized by the Agency. 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. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured parry 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 Agency may take such immediate action as the Agency 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 Agency's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. [Deleted.] 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting parry on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Contractor requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Contractor. Any waiver by either parry 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. 7 104 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 Agency 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 Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owned the Agency 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 Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency 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 Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee 10 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. To Agency: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: Mark Weiss Assistant Executive Director To Contractor: The Dahlin Group 539 South Cedros Avenue Solana Beach, CA 92075 Attention: Jack Gallagher Project Architect 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. 11 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 SeverabRity. 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. 12 stated below. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates LA QUINTA REDEVELOPMENT AGENCY Dated: By: EXECUTIVE DIRECTOR "AGENCY" ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel Dated: MD Name: Title: "CONTRACTOR" 13 EXHIBIT A SCOPE OF SERVICES for SILVERROCK RANCH GOLF CLUBHOUSE AND SUPPLEMENTARY FACILITIES In THE CITY OF LA QUINTA, CALIFORNIA November 6, 2003 A.1 CONTRACT A.1.1 This EXHIBIT A is a part of the AGREEMENT FOR PROFESSIONAL SERVICES ("Agreement"), dated November 6, 2003 (attached), made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY ("Agency" or "RDA"), and DAHLIN GROUP, INC. ("Architect"). In the event of any conflict between Exhibit A and the text of the Agreement above, the text of the Agreement shall control. A.2 PROJECT DESCRIPTION A.2.1 The Project is the design of the architecture for various golf course amenity buildings noted in the Building Program below, for The SilverRock Ranch Master Planned Resort Community at the southwest corner of Jefferson Street and Avenue 52 in La Quinta, California. A.2.2 Building Program: .1 Temporary Golf Clubhouse approximately 2,500 square feet in area, including a pro shop, snack bar and restrooms. .2 Golf Course Maintenance Building approximately 10,000 square feet in area. .3 Golf Course Restroom Building approximately 400 square feet in area, to be located in each of two (2) separate locations. .4 Well/Pump House Building approximately 600 square feet in area. .5 Temporary Golf Cart Storage Facility for approximately 80 carts. A.3 SCOPE OF SERVICES A.3.1 Project Assumptions: Project scope and fees are based on the following assumptions: .1 Architect will prepare an evaluation of the existing Ranch House building on site to determine its suitability for use as a temporary clubhouse. Evaluation will include compliance with applicable building codes, A.D.A. regulations, and compatibility with the RDA's program. Architect will provide a written report which summarizes the evaluation and findings. 14 1=gig .2 If remodel of the Ranch House is determined feasible, Architect will prepare, for approval by the RDA, schematic design of the existing Ranch House building and the proposed remodel. .3 If the existing Ranch House is not feasible for use as a temporary clubhouse, Architect will prepare, for approval by the RDA, schematic design for a new temporary clubhouse using modular pre -fabricated trailers. .4 Architect will prepare, for approval by the RDA, conceptual design ideas and imagery to assist in establishing an overall design theme compatible with the vision and objectives of the RDA. .5 Architect will prepare, for approval by the RDA, schematic design for each of: Maintenance Building, Restroom Building and Well/Pump House Building. .6 The design requirements for the Well/Pump House Building will be established by the RDA's Water/Wastewater Engineering Consultant. Architect will design the building only. RDA's Engineering Consultant will design the well/pump infrastructure both inside and outside the building. .7 The kitchen/snack bar will be limited to %100 Pre -Packaged Foods, as defined by the County of Riverside Environmental Health Services (i.e. no cooking, etc.). .8 Architect will provide design services as required by the RDA to assist in identifying and installing a temporary golf cart storage facility. These services will be limited to consultation and site plan review with a temporary facilities vendor. All engineering, permits, approvals, and construction coordination will be provided by the vendor and the RDA's Construction Manager ("C.M."). .9 All meetings, site visits, and presentations which occur after the RDA's "notice - to -proceed" will be provided by Architect and Architect's consultants as listed below. This list assumes that all of the buildings will be designed and constructed concurrently, and assumes the following number of meetings, site visits or presentations: .a Pre -Design, including Ranch House Evaluation: two (2) for Architect; one (1) each for Structural Engineer, Mechanical, Plumbing & Electrical Engineer. .b Schematic Design: two (2) for Architect. Assuming remodel of Ranch House determined feasible: one (1) each for Structural Engineer, Mechanical, Plumbing & Electrical Engineer, and Cost Consultant. .c Public Presentations: two members of Architect's staff attending two (2) such meetings or presentations. .d Design Development & Construction, Documents: three (3) for Architect; one (1) each for Structural Engineer, Mechanical, Plumbing & Electrical Engineer. .e Pre -Bid Meeting & Bidding: one (1) for Architect; one (1) each for Structural 15 110 Engineer, Mechanical, Plumbing & Electrical Engineer. .f Construction Administration: six (6) for Architect; two (2) each for Structural Engineer, Mechanical, Plumbing & Electrical Engineer. .10 The buildings will be Type-V, non -rated construction, wood framed or masonry, with conventional slab on grade foundation. .11 The RDA will appoint a Construction Manager ("C.M.") who will be responsible for pre -construction and Construction Administration services. The C.M. will provide cost estimates, and will provide permit processing services, bidding services, construction scheduling, and constructability reviews. The C.M. will thoroughly review the final Construction Documents and resolve any conflicts or clarifications with the Architect prior to bidding. Architect will provide Bidding Assistance as necessary to answer questions or clarifications to the C.M. The Architect is not providing detailed cost estimates or construction cost guarantees. .12 Each building of the project will be designed and constructed under a single permit for each, with one set of Construction Documents for each, to be coordinated and collated by the Architect. Services associated with phased - permit construction or fast -tracking are not included, but may be provided as an Additional Service if requested by the RDA. .13 Building utilities will be stubbed 5'-0" from building for connection and coordination by the RDA's Site Engineer and Dry Utilities Consultant. A.3.2 Work Included: The following work is included in Architect's Scope of Services for this Contract. This work is a part of Architect's fixed -fee basic services unless otherwise noted as "T&M" or "additional service": .1 Schematic Design. This shall include architectural floor plans, roof plans, exterior elevations and building sections which delineate the basic shape, structure, size, and character of each building. Plans and elevations will be colored if required for final presentation purposes. .2 Outline specifications for each building at the completion of Schematic Design. .3 If requested, Architect will provide approximate building cost estimates per square foot based on past experience and historical data. Detailed cost estimates are not included. .4 Design Development, Construction Documents and Plan Check Responses. .5 Architectural plans and specifications as required for permitting through the City of La Quinta and for C.M. Bidding. .6 Structural engineering and calculations for buildings as required for permitting through the City of La Quints and for C.M Bidding. .7 Electrical engineering and lighting design for the buildings, mechanical engineering and plumbing design, and compliance with Title-24 Model Energy 16 Code, as required for permitting through the City of La Quinta and for C.M. Bidding. .8 Review and assist in coordinating the designs prepared by the RDA's consultants for general conformance with the Architectural designs. .9 Bidding Assistance: limited to an addendum for bid clarifications. .10 Construction Administration. This shall be provided on a T&M basis. The RDA will appoint a C.M. for pre -construction services with the intent that he will continue with the construction of the project through to completion. The T&M estimate provided herein assumes the Architect will limit his Construction Administration services as follows: .a Architect will respond to the C.M.'s written RFI's, and assist in the processing of RFI's between consultants. RFI's issued by the C.M. prior to the execution of the contract for construction will be addressed by the Architect as part of basic services. .b Architect will review project shop drawings, product data, samples and other submittals. C.M. will thoroughly review and approve all submittals prior to sending them to the Architect. A.3.3 Work Not Included: The following work is NOT included in Architect's Scope of Services for this Project: .1 Site work, hardscape, steps and site walls not connected to buildings, gates and fences, landscaping, planters, site lighting, swimming pool and other water features, detached trellises and shade structures (except where connected/adjacent to building), site furnishings, site signage, golf course work, maintenance yard facilities (storage bins, gas pumps, sand/oil interceptor), off - site and site utility design, or cost estimates for any the above. The RDA's Civil Engineer, Landscape Architect, Golf Course Architect, and Utility Specialist will provide these and all other site -related design services. .2 Geotechnical Engineering services. The RDA's Geotechnical Engineer will provide soils reports to the Architect prior to the start of Design Development. .3 Services associated with unfavorable or unforeseen soils conditions, post - tensioned foundation design, or engineering for other than a conventional foundation design. If required, these may be provided through the Architect's Structural Engineer as an Additional Service. .4 Design of pre -fabricated roof trusses. This will be provided by the General Contractor ("G.C.") through a design/build truss supplier. .5 Fire Sprinkler design. If Fire Sprinklers are required, the complete system design and drawings will be provided through the G.C.'s sprinkler sub -contractor on a design/build basis. Performance specifications will be provided by the Architect. .6 Design of Data, Audio Visual, Public Address, Telephone, Security, or other 17 1.1 40 "Special" electrical systems. The G.C. will provide these systems through design/build subcontractors. Performance specifications will be provided by the Architect. .7 Interior and site furnishings, fixtures and equipment ("FF&E") purchasing services, or detailed finish specifications. Generic finish specifications (e.g. "carpet") will be provided by the Architect. Detailed product specifications (e.g. carpet pattern, color, manufacturer, etc.) will be provided by the RDA's Golf Operator or other consultant. .8 Design of Pro Shop casework and displays. It is assumed this will be provided by a vendor on a design -build basis as a separate FF&E item. .9 Models, computer imaging, artist's renderings, or other special graphic presentation exhibits. These can be provided by the Architect as an Additional Service. .10 Utility agency and Government agency management, filing, and processing fees and preparation of title reports. .11 Contractor's payment requests and processing of change orders. This will be provided by the C.M. .12 Detailed cost estimates (see A.3.2.3). If required, these will be provided by the C.M., or may be provided by the Architect as an additional service. .13 Food Service Design consulting services (see A.3.1.7). If required, these may be provided by the Architect as an additional service. A.4 CONSULTANT SERVICES A.4.1 Architect will provide the following consultant services for the buildings: Structural Engineering, Electrical Engineering and Lighting Design, Mechanical Engineering, Plumbing Engineering, and Title-24 consultants. A.4.2 The RDA will provide the following consultant services: Civil Engineering, Landscape Architecture, Golf Course Architecture, design of Maintenance Yard facilities, design of Pools, spas and other water features (if required), Geotechnical Engineering, Wet and Dry Site Utilities Engineering, Security Design. If additional consultants are required, they will be provided by the RDA. A.4.3 The RDA's Civil Engineer will provide plot plans, precise grading plans, drainage plans, wet utilities plans to connect to the building engineer's stub -outs .5'-0" from the buildings, and horizontal control and striping plans, as required by the RDA and for permit and construction. A.4.4 The RDA's Landscape Architect will provide design, drawings, and specifications for landscaping, hardscape, site lighting, irrigation, site walls, fencing, gates and exterior signage as required by the RDA and for permit and construction. A.4.5 The RDA's Utility Specialist will provide site and off -site dry utilities plans as required to 18 113 connect to the building Engineer's stub -outs 5'-0" from the buildings. A.5 REVISION A.5.1 After completion of the RDA -approved Schematic Design phase and associated cost estimates: revisions due to changes by the RDA, RDA's consultants or value engineering, and revisions which have been requested to document "as -built" conditions, will be done on a T&M basis as an Additional Service. A.6 CODE INTERPRETATIONS A.6.1 Architect shall review his plans and specifications for code compliance with local building codes. The Architect shall, to the best of his ability, interpret building codes as they apply to the project. Architect is responsible to make all reasonable changes to the construction documents to fulfill the municipal plan check comments so as to allow the RDA to obtain a building permit. If, during the project, the interpretation of the building codes by a public authority differs from the interpretation of the Architect through no fault of the Architect, then any additional costs necessary to conform to the interpretation shall be negotiated. A.7 ARCHITECT'S COMPENSATION A.7.1 Fees for Professional Services: See Section 2.1 of the Agreement and Exhibit B (attached). A.7.2 Additional Services: Additional services shall be compensated on a T&M basis per the Basic Hourly Rate Schedule in effect at time of service (see Exhibit D, attached). Additional Services require the written approval of the RDA prior to commencement of work. A.7.3 Non -Reimbursable Expenses: The basic fee for services includes the following, which will not be billed to the RDA: .1 Travel time, expenses and mileage within, to and from Riverside County; .2 First class U.S. Mail, photocopies, faxes, film developing and telephone; .3 In-house printing and plotting of drawings prior to issuance of Building Permit. A.7.4 Reimbursable Expenses: The basic fee for services does not include the following, which will be billed to the RDA as reimbursable expenses: .1 Special delivery services such as courier, overnight delivery, or express mail; .2 Out -of -house printing and plotting when requested by the RDA or C.M.; ,3 Other outside services, including color scanning, graphic materials, and similar project -related expenses as may be requested by the RDA; .4 All plots of CAD drawings after issuance of Building Permit; 19 114 .5 Plan check or other fees. A.7.5 Payments: Invoices will be monthly based on the percentage completed for each phase if fixed fee, and T&M phases showing staff, number of hours, and description of work. Invoices are due upon presentation. The RDA shall review invoices and contact the Architect within seven (7) days if there are any questions or problems that would delay payment. Invoices become delinquent if not paid within thirty (30) days of the date of the invoice. A.8 SCHEDULE A.8.1 A target schedule for the Project is attached (See Exhibit C), which is based on the RDA's desired opening of all Project facilities by January 2005. The Architect recognizes the importance of the RDA's desired opening date, and will exert every reasonable effort to complete its scope of services on or before schedule. The RDA recognizes that the target schedule dates and time periods are also based on certain tasks or milestones outside of the Architect's control, including an assumed date for the "Notice to Proceed", timely approvals by the RDA, tasks which are dependent on services and deliverables expected to be provided by the RDA's consultants, and the time for site and building construction. 20 EXHIBIT B FEES FOR PROFESSIONAL SERVICES SILVERROCK RANCH GOLF CLUBHOUSE AND SUPPLEMENTARY FACILITIES PRE -DESIGN AND BUILDING EVALUATION $ 16,000 Fixed SCHEMATIC DESIGN $ 33,000 Fixed DESIGN DEVELOPMENT $ 54,000 Fixed CONSTRUCTION DOCUMENTS & BIDDING ASSISTANCE $ 95,000 Fixed SUBTOTAL FIXED FEES CONSTRUCTION ADMINISTRATION TOTAL FIXED FEES + HOURLY ESTIMATE $14,000Hourly Estimate (not to exceed) $ 212,000 Consultant agrees that the total amount of compensation, including reimbursables, for the full completion of all work within the Scope of Services shall in no event exceed $212,000. 21 EXHIBIT C SCHEDULE SUMMARY SILVERROCK RANCH GOLF CLUBHOUSE AND SUPPLEMENTARY FACILITIES PRE -DESIGN SCHEMATIC DESIGN DESIGN DEVELOPMENT CONSTRUCTION DOCUMENTS PLAN REVIEW AND BIDDING CONSTRUCTION ADMINISTRATION 11/19/03to 12/16/03 11/26/03to 1/29/04 1/30/04to 3/10/04 3/ 11 /04 to 5/5/04 5/6/04 to 711104 7/1/04to 12/30/04 22 EXHIBIT D DAHLIN GROUP BASIC HOURLY RATE SCHEDULE Doug Dahlin $180 Principal $150 Senior Architect/ Project Manager $135 Architect/Project Manager $115 Senior Designer/Drafter $100 Intermediate Designer/Drafter $ 90 Junior Drafter $ 80 Intern $ 55 Clerical $ 55 Computer Plotting (24" x 36" sheet) $4.50/ Sheet (30" x 42" sheet) $6.00/ Sheet Consultant fees, outside services, printing, graphic materials, telephone, and similar project related expenses: 1.15 x billing. Travel time outside the San Diego/Riverside County Area at Basic Hourly Rate. Travel mileage outside the San Diego/Riverside County Area at $ 0.365 per mile. Consultant agrees that the total amount of compensation, including reimbursables, for the full completion of all work within the Scope of Services shall in no event exceed $212,000. 23 118 COUNCIL/RDA MEETING DATE: November 18, 2003 ITEM TITLE: Consideration of a Request for Proposals for Archaeological Monitoring Services for SilverRock Ranch RECOMMENDATION: Iry AGENDA CATEGORY: BUSINESS SESSION: ` CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize the distribution of a Request for Proposals (RFP) for Archaeological Monitoring services (Phase IA) and appoint a Consultant Selection Committee. FISCAL IMPLICATIONS: The City's Capital Improvement Program includes the SilverRock Ranch project and has budgeted $36,472,162 for construction costs. At this time, the funding available is $361447,162. BACKGROWND AND OVERVIEW: The Redevelopment Agency acquired 525 acres of property, commonly referred to as "The Ranch," in June of 2002. The Agency adopted a conceptual land use plan and named the project "SilverRock Ranch" in May 2003. The Agency selected Palmer Course Design Company (PCDC) to provide golf course architectural services and Roy Stephenson, P.E. of Berryman & Henigar, to serve as Development Coordinator for Phase I of the project. The Development Coordinator's responsibilities include assisting the project development team in identifying and preparing RFP's for specialists needed to design the golf course, support infrastructure, landscape improvements, a temporary clubhouse, restrooms, and a maintenance building. The golf course design is underway and scheduled for completion in Fate December 2003. The mass grading of the site is scheduled to start in January 2004 and will last three months. Archaeological Monitoring RFP The RFP for archaeological monitoring is for on -site services during the mass grading operation, where cuts up to 20' + /- may be made. The firm will identify, record, and evaluate all subsurface artifacts, features, or sites discovered during the grading operation. They will catalog all artifacts that may be recovered and arrange for permanent curation at the City. They will consult with Native American representatives and/or local historical societies in the event of archaeological discoveries. A final report documenting the results of the monitoring services will be prepared upon completion of the work. Consultant Selection Committee Staff proposes the Consultant Selection Committee include the following members: Jerry Herman, Community Development Director Tim Jonasson, Public Works Director Roy Stephenson,. Development Coordinator Process The RFP's have been set up using the standard consultant selection process wherein the Committee interviews, rates, and negotiates a contract with a selected firm, with subsequent contract consideration by the full Agency Board. On selected occasions (i.e., the Golf Architect), the Board -has chosen to interview finalists prior to contract negotiation/consideration. Staff is prepared to modify the RFP and its schedule should the Agency Board wish to interview the top rated firms. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1 Authorize the distribution of a Request for Proposals for Archaeological Monitoring services; and appoint the Consultant Selection Committee; or 2. Do not authorize the distribution of a Request for Proposals for Archaeological Monitoring services; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Acting Executive Director Attachments: 1. Archaeological Monitoring RFP 121 ATTACHMENT 1 Request For Proposals The La Quinta Redevelopment Agency (RDA) is requesting proposals from consulting firms to provide Archaeological Monitoring services in conjunction with implementation of the RDA's SilverRock Ranch project (Phase IA, portions of Phase 1 B). Phase IA includes construction of the first golf course, maintenance building, two golf course restrooms, a temporary clubhouse and supporting infrastructure. Phase 1 B improvements include the village lake, Jefferson Street and Avenue 54 parkway improvements, and related infrastructure. In July 2002, the Agency purchased 525 acres that was once the Ahmanson family ranch. Now known as SilverRock Ranch, the RDA's goal is to develop a premier golf -oriented resort community that encompasses two 18-hole golf courses, resort, passive recreation, and resort -oriented commercial uses. The property is adjacent to the Santa Rosa and Coral Reef Mountains and the private golf communities of PGA West, Tradition, The Citrus, and The Hideaway. GMA International has completed the conceptual master plan and development program for this property, which was approved by the Redevelopment Agency Board on May 6, 2003. The master -plan includes a preliminary routing plan for both golf courses, entry roads, and identifies future community center/golf clubhouse, hotel, and commercial sites. The master plan also includes a phasing plan (Exhibit A). Phases IA and IB have now been conceptually approved by the RDA for implementation. The RDA has selected Palmer Course Design Company as the Golf Course Architect for Phase IA. The golf course design is scheduled for completion in early 2004. The RDA has also extended the contract with GMA International to provide support services during the design effort. Roy Stephenson P.E. of Berryman & Henigar, Inc. has been retained to provide development coordination services. The Keith Companies is providing civil engineering services; Pacific Advanced Civil Engineering is providing water engineering services; the Dahlin Group is designing the temporary clubhouse, restrooms, 4 1240, and maintenance facility; and Heinbuch Golf is the construction manager for the golf course and related vertical elements. It is the RDA's intent to construct the golf course under two separate contracts: it's anticipated a contract for mass grading of Phase IA will be awarded in January 2004, followed by a contract for golf course construction scheduled for award in April 2004. An Archaeological Monitoring firm is required on -site during the mass grading operation (approximately 800,000 CY with cuts and fill of up to 20' +/-). The mass grading contract is scheduled to start in January 2004 and be completed in March 2004. 5 1. Exhibit A Phasing Plan 1. 4 Desired Services The RDA has the need for archaeological monitoring services during the mass grading of the SilverRock Ranch Phase I golf course. The land is currently relatively flat and the golf course construction may have cuts up to 20' deep. Accordingly, the RDA is seeking the following services: 1. Provide on -site monitoring during grubbing, grading, and/or other earth -moving operations; 2. Identify, record, and evaluate all subsurface artifacts, features, or sites discovered during monitoring, if any; 3. Catalog all artifacts recovered during monitoring, if any, and arrange for their permanent curation at the City; 4. Consult with Native American representatives and/or local historical societies in the event of significant archaeological findings; 5. Prepare a final report to document the results of the procedures outlined above. � 25 Ranch Vision The SilverRock Ranch's canvas spans 525 acres adjacent to the base of the Coral Reef Mountains in the City of La Quinta. The RDA's goal is to develop premiere hospitality and golf venues that become must -see destinations in the Coachella Valley. The final development will be crafted as if it had evolved over time by melding the rich hues of the desert and strong architectural elements inspired by the site with rusticated materials. The Agency has discussed the proposed buildings architectural style as one that captures a sense of lightness and beauty that's found in styles similar to a California Colonial or other southwest Spanish look or theme, keeping with the charm and character of the City of La Quinta. Environmental approvals have been secured to develop the following uses on SilverRock Ranch: a 250-room hotel with a 10,000 square foot conference center; 300 condo hotel or fractional units with up to 500 keys; two 18-hale public golf courses with a driving range and a 25,000 square foot clubhouse; one 9-hole public golf course; and 25,000 square feet of ancillary tourist commercial uses. Additional approved uses entail passive park space, trails, and view corridors. The RDA approved a Master Plan for the project in May 2003. The Master Plan sets forth a preferred site development program and plan that will guide the precise planning processes. GMA International has been managing this activity and prepared the master plan and associated documents. Their work will be available to the selected organization. The RDA has secured funding to facilitate the development of one golf course and associated improvements. Additional information may be found at the project website: www.silverrockranch.com 140.6 Regional Location i�� Ranch Location 10 JOB Submittal Procedures Proposal Packages and Submittal Deadline A work proposal and a cost proposal are to be submitted in separate envelopes, clearly marked with the consultant's name, address and phone number. Work proposals are to be submitted in the envelope marked "Work Proposal" and cost proposals are to be submitted in the envelope marked "Cost Proposal." Ten (10) proposal packages are due by 1:00 p.m., Friday, December 12, 2003, and delivered to: Mark Weiss, Assistant Executive Director/Project Manager La Quinta Redevelopment Agency 78-495 Calle Tampico P. O. Box 1504 La Q u i nta, CA 92253 Contact Person All questions regarding SilverRock Ranch and this Request for Proposals should be directed to Mark Weiss via email at mweiss@la-quinta.org. 11 1.�9 Proposal Format Respondents are encouraged to keep their proposals brief (not to exceed 20 pages) and relevant to the specific work required. Proposals shall include a minimum of the following items: 1. Work Proposal (Envelope 1) — Submit ten (10) copies limited to a maximum of 20 pages. A. Cover Letter i. The name, address and phone number of the contact person for the remainder of the selection process. ii. Any qualifying statements or comments regarding the proposal and relevant to the information provided in the RFP or the proposed contract. iii. Identification of sub consultants, if any, and their responsibilities. B. Statement of Qualifications i. A listing of project personnel including relevant experience and resumes. ii. Experience with similar work including names and current phone numbers of references for listed projects. C. Project Understanding and Approach i. A ,narrative that details your understanding of the project and how the organization will approach the requested services. D. Scope of Services i. A description of the tasks, sub tasks, and specific deliverables that will be provided. ii. A description of the firm's current workload with discussion of how this project would be incorporated into the firm's work schedule. 12 1.10 E. Schedule Requirements i. The anticipated date for a Notice to Proceed is January 12, 2004. ii. The Agency envisions a 3-month term for construction management services. 2. Cost Proposal (Envelope 2) (Submit one copy) A. A detailed cost proposal for all services and materials is required including the direct and indirect rates (with overhead) and percent of profit anticipated in completing the services as outlined in this RFP. Man hours and extended billing rates per classification of personnel will be indicated for each defined task and/or sub task. A not -to -exceed allowance for reimbursable expenses should also be included within the cost proposal. 13 Selection Process A Consultant Selection Committee will review the work proposals. The Committee will select the consultants for interviews based upon the materials submitted in the work proposal. The Committee will interview selected firms and rank the firms. Only after the ranking process is complete will the cost proposals be opened. The Committee will negotiate a contract with the top firm that will then be considered for approval by the Redevelopment Agency Board. The successful firm will be expected to enter into the attached Professional Services Agreement. The tentative schedule is as follows: Issue Request for Proposals November 19, 2003 Proposal due December 12, 2003 Oral interviews December 18, 2003 Agency Board consideration January 6, 2004 Start activities January 12, 2004 This solicitation does not commit the La Quinta Redevelopment Agency to award a contract, to pay any cost incurred with the preparation of a proposal, or to procure or contract for services or supplies. The La Quinta Redevelopment Agency reserves the right to accept or reject any or all proposals received in response to this request, to negotiate with any qualified source, or cancel in whole or part this proposal process if it is in the best interest of the Agency to do so. Subsequent to contract negotiations, prospective consultants may be required to submit revisions to their proposals. All proposers should note that any contract pursuant to this solicitation is dependent upon the recommendation of the Agency staff and the approval of the Agency Board. 14 1Q