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2004 02 03 CCef�� 4 44dja City Council Agendas are Available on the City's Web Page @ www.la-quinta.org CITY COUNCIL AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, February 3, 2004 - 2:00 P.M. Beginning Resolution No. 2004-18 Ordinance No. 400 CALL TO ORDER Roll Call: Council Members: Henderson, Osborne, Perkins, Sniff, and Mayor Adolph PUBLIC COMMENT At this time, members of the public may address the City Council 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 - NONE NOTE: Time permitting the City Council may conduct Closed Session discussions during the dinner recess. Persons identified as negotiating parties are not invited to participate in the Closed Session meeting when the Agency is considering acquisition of real property. V i City Council Agenda 1 February 3, 2004 1 PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the City Council 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 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 City Council beginning consideration of that item. CONFIRMATION OF AGENDA PRESENTATIONS 1. PRESENTATION BY QUEEN SHEHERAZADE AND HER COURT ON BEHALF OF THE RIVERSIDE COUNTY FAIR AND NATIONAL DATE FESTIVAL. WRITTEN COMMUNICATIONS 1. CORRESPONDENCE FROM RESIDENTS OF THE FIESTA DRIVE NEIGHBORHOOD. APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF JANUARY 20, 2004 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 FEBRUARY 3, 2004. 2. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 29323-2, ESPLANADE, LENNAR HOMES OF CALIFORNIA INC. City Council Agenda 2 February 3, 2004 3. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 29894-4, HIDEAWAY, ND LA QUINTA PARTNERS, LLC. 4. APPROVAL OF A REQUEST FOR PROPOSALS TO OBTAIN PROFESSIONAL CONSTRUCTION MANAGEMENT SERVICES FOR THE MUNICIPAL LIBRARY, PROJECT NO. 2000-06. 5. ADOPTION OF A RESOLUTION GRANTING CONDITIONAL APPROVAL OF A FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP 29894-3, HIDEAWAY, ND LA QUINTA PARTNERS, LLC. 6. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR THE PUBLIC WORKS DIRECTOR/CITY ENGINEER AND THE TRAFFIC AND DEVELOPMENT SENIOR ENGINEER TO ATTEND THE 2004 PUBLIC WORKS OFFICERS INSTITUTE TO BE HELD IN SANTA BARBARA, CALIFORNIA, MARCH 3-5, 2004. 7. AUTHORIZATION FOR OVERNIGHT TRAVEL FOR A BUILDING INSPECTOR II TO ATTEND THE CALIFORNIA BUILDING OFFICIALS ANNUAL BUSINESS MEETING TO BE HELD IN LONG BEACH, CALIFORNIA, MARCH 9-12, 2004. 8. APPROVAL OF A FUNDING REQUEST FROM THE GREATER COACHELLA VALLEY SOAP BOX DERBY. BUSINESS SESSION 1 CONSIDERATION OF APPROVAL OF AN AMENDMENT TO CHAPTER 3, SECTIONS 3.28 (G) AND 3.28.370 OF THE LA QUINTA CHARTER AND MUNICIPAL CODE RELATING TO BUSINESS LICENSE RENEWAL DATE. A. TAKE UP ORDINANCE BY TITLE AND NUMBER ONLY AND WAIVE FURTHER READING. B. INTRODUCE ORDINANCE ON FIRST READING. 2. CONSIDERATION OF A FUNDING REQUEST BY THE LA QUINTA ARTS FOUNDATION. A. MINUTE ORDER ACTION 3. CONSIDERATION OF A SPRING EVENT TO BE HOSTED BY THE CULTURAL ARTS COMMISSION ON APRIL 24, 2004. A. MINUTE ORDER ACTION City Council Agenda 3 February 3, 2004 4. CONSIDERATION OF APPOINTMENT OF TWO CITY COUNCIL MEMBERS TO SERVE ON THE CIVIC CENTER ART PURCHASE COMMITTEE. A. MINUTE ORDER ACTION 5. CONSIDERATON OF COMMUNITY SERVICES GRANT APPLICATIONS. A. MINUTE ORDER ACTION 6. CONSIDERATION OF BRIDGE RAILING DESIGN ALTERNATIVES FOR THE JEFFERSON STREET BRIDGE OVER THE COACHELLA VALLEY STORM CHANNEL. A. MINUTE ORDER ACTION 7. CONSIDERATION OF A REQUEST FOR PROPOSALS FOR ARCHITECTURAL DESIGN GUIDELINES FOR PROPERTIES WITHIN THE REGIONAL COMMERCIAL LAND USE/ZONING DISTRICT. A. MINUTE ORDER ACTION 8. CONSIDERATION OF SECOND READING OF ORDINANCE NO. 399 ADOPTING AN AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT NO. 2. A. ADOPT ORDINANCE ON SECOND READING STUDY SESSION — NONE REPORTS AND INFORMATIONAL ITEMS 1. ANIMAL CAMPUS COMMISSION (PERKINS) 2. CITY COUNCIL AD HOC COMMITTEE REPORTS 3. CVAG COMMITTEE REPORTS 4. CHAMBER OF COMMERCE WORKSHOP/INFORMATION COMMITTEE (HENDERSON) 5. C.V. MOSQUITO AND VECTOR CONTROL DISTRICT (PERKINS) 6. C.V. MOUNTAINS CONSERVANCY (SNIFF) • 7. DESERT RESORTS REGIONAL AIRPORT AUTHORITY (OSBORNE) S. LEAGUE OF CALIFORNIA CITIES (HENDERSON) 9. PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY HENDERSON) 10. PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION (ROBERT TYLER) 11. RIVERSIDE COUNTY DESERT LIBRARY ZONE ADVISORY BOARD (HENDERSON) City Council Agenda 4 February 3, 2004 4 12. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (HENDERSON) 13. SAN JACINTO/SANTA ROSA NATIONAL MONUMENT ADVISORY COMMITTEE (HENDERSON) 14. SUNLINE TRANSIT AGENCY/SUNLINE SERVICES GROUP (ADOLPH) 15. INVESTMENT ADVISORY BOARD MINUTES DATED DECEMBER 14, 2003. DEPARTMENT REPORTS 1. CITY MANAGER A. RESPONSE(S) TO PUBLIC COMMENTS 2. CITY ATTORNEY 3. CITY CLERK A. REPORT ON UPCOMING EVENTS 4. BUILDING AND SAFETY DIRECTOR'S MONTHLY REPORT - NONE 5. COMMUNITY DEVELOPMENT DIRECTOR'S MONTHLY REPORT - NONE 6. COMMUNITY SERVICES DIRECTOR'S REPORT - NONE 7. FINANCE DIRECTOR'S REPORT - NONE 8. PUBLIC WORKS DIRECTOR/CITY ENGINEER'S REPORT - NONE 9. POLICE CHIEF'S MONTHLY REPORT - NONE 10. FIRE CHIEF'S QUARTERLY REPORT - NONE MAYOR'S AND COUNCIL MEMBERS' ITEMS 1. DISCUSSION OF PARTICIPATION IN FUNDING EFFORTS OF CALIFORNIA STATE UNIVERSITY SAN BERNARDINO - PALM DESERT CAMPUS. (REQUESTED BY MAYOR ADOLPH.) RECESS TO REDEVELOPMENT AGENCY MEETING RECESS TO 7:00 P.M. 7:00 P.M. PUBLIC COMMENT This is the time set aside for public comment on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three (3) minutes. Please watch the time clock on the speaker's podium. PRESENTATIONS — NONE r J City Council Agenda 5 February 3, 2004 PUBLIC HEARINGS For all Public Hearings on the agenda, a completed "request to speak" form must be filed with the City Clerk prior to the start of City Council consideration of that item. The Mayor will invite individuals who have requested the opportunity to speak, to come forward at the appropriate time. Any person may submit written comments to the La Quinta City Council before a public hearing may appear and be heard in support of, or in opposition to, the approval of project(s) at the time of the hearing. If you challenge any project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City Clerk at, or prior to the public hearing. 1. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-200 JEFFERSON STREET, LA QUINTA, CALIFORNIA, APN 649-090-002 FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, HIGHWAY 111 TO INDIO BOULEVARD, PROJECT 2000-19. A. RESOLUTION ACTION 2. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-250 JEFFERSON STREET, APN 649-090-003 FOR JEFFERSON STREET IMPROVEMENTS, PHASE 11, HIGHWAY 111 TO INDIO BOULEVARD, PROJECT 2000-19. A. RESOLUTION ACTION 3. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-055 JEFFERSON STREET, APN 649-071-009 FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, HIGHWAY 111 TO INDIO BOULEVARD, PROJECT 2000-19. A. RESOLUTION ACTION 4. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-175 JEFFERSON STREET, APN 649-071-013 FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, HIGHWAY 111 TO INDIO BOULEVARD, PROJECT 2000-19. A. RESOLUTION ACTION n City Council Agenda 6 February 3, 2004 5. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-235 JEFFERSON STREET, APN 649-071-015 FOR JEFFERSON STREET IMPROVEMENTS, PHASE II HIGHWAY 111 TO INDIO BOULEVARD, PROJECT 2000-19. A. RESOLUTION ACTION 6. PUBLIC HEARING TO ADOPT AN ORDINANCE AND RESOLUTION OF THE CITY COUNCIL CONSIDERING ZONING CODE AMENDMENT 2003-080, A REQUEST TO AMEND SECTION 9.160.080 — SEMI -PERMANENT DOWNTOWN VILLAGE DIRECTIONAL SIGNS — OF THE LA QUINTA MUNICIPAL CODE TO ALLOW ADDITIONAL SIGN PANELS AND OTHER MINOR AMENDMENTS AND AN AMENDMENT TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CHAMBER OF COMMERCE. A. RESOLUTION ACTION B. TAKE UP ORDINANCE BY TITLE AND NUMBER ONLY AND WAIVE FURTHER READING C. INTRODUCE ORDINANCE ON FIRST READING D. MINUTE ORDER TO AMEND MEMORANDUM OF AGREEMENT ADJOURNMENT Adjourn to a regularly scheduled meeting of the City Council to be held on February 17, 2004, 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 1, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council meeting of Tuesday, February 3, 2004, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of Commerce and at Stater Bros. 78-630 Highway 111, on Friday, January 30, 2004. DATED: January 30, 2004 2r-�' __ege JUNE S. GREEK, CMC, City Clerk City of La Quinta, California City Council Agenda 7 February 3, 2004 w Public Notices The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777- 7025, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangement should be made in advance by contacting the City Clerk's Office at 777- 7025. A one (1) week notice is required. If background material is to be presented to the City Council during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the 3:00 PM session or the 7:00 PM session. City Council Agenda 8 February 3, 2004 8 WRITTEN CORRESPONDENCE ITEM: Donald Adolph, Mayor Stanley Sniff, Mayor Pro Tem Ron Perkins, Council Member Terry Henderson, Council Member Lee Osborne, Council Member Mae"" to La Ouinta 0 v _Cot Ind 2 CtT Y OF L A QUl T CITY y CLERK'$ O i E The City of La Quinta is planning to convert that portion of Jefferson Street south of Highway 111 into a six -lane road with a traffic signal at the intersection of Jefferson Street and Westward Ho Drive. Traffic headed to and from La Quinta High School will use westbound Fiesta Drive as an alternate route from westbound Westward Ho Drive to evade this proposed traffic signal. Now is the time for the city council to consider creating a cul-de-sac at the current intersection of Jefferson Street and Fiesta Drive. The benefits to the current residents of the neighborhood include the usual benefits of restricting neighborhood traffic, including pedestrian safety, reduced traffic noise, higher property values, etc. The current neighborhood near this proposed cul-de-sac has no sidewalks. The pedestrian school children from John Glenn Middle School, Amelia Earhart Elementary, and La Quinta High School have to walk on Fiesta Drive along with the traffic. This is a safety concern for all residents as marry cars currently drive down Fiesta at a rate of speed exceeding neighborhood speed limits. All of the undersigned are residents of the La Quinta neighborhood near the corner of Jefferson Street and Fiesta Drive who respectfully request that the council consider the safety of the pedestrian school children who must share Fiesta Drive with the traffic to and from La Quinta High School. The undersigned respectfully request that the city council create a cul-de-sac at the intersection of Jefferson Street and Fiesta Drive. 1 Signature Printed Name Street Address 471�11f4LYl V -) 9 N O ' Fib t4 ., rinted Name Street Address rinted Name Street Address r rinted Name Street Address treet Address 9 ignature Printed Name Street Address i C fCFI R L N S E L. L / a �%Cs �-� .1)•e, Printed Name Street Address mrie.. rn I LLer --7 9`7 y D Printed Name Street Address 101,- MAkL Zvi 2 4a . Eik-amA- DM, Signature Printed Name Street Address Signature Printed N me Street Address b�vl'iMr 11 tv I Fte,4 Printed Name Street Address IEACL�,ae-&AI6 -799QEF-i�g� Dz. Printed Name Street Address ka, 1 � � - Print Name Street Address Street Address day F 4��rES 71-IF/ o Printed Name Street Address Street Address 71-`iZo V�. Street Address . 4��y P-4qots J Signature Printed Name Signature Printed Name Street Address G�U1D" /F 6 Signature Printed Name Street Address Street Address -q,c'.,a S A p R" peq ;w &W- 11,^( Printed Name Street Address Print Nam Street Address Jo&Lco -71ga5e` cq1A�>L LQ, Printed Name Street Address Printed N Street Address Printed Name Street Address Printed Name Street Address fi-2f ALI)r I I brll[,�Act5q Ruywm(qjw Printed Nam Street Address Signature erninted Name Str Address nature Printed Name Street Address Sighature P ' t Na7 Street Address 1` C.rr- yr • `� `�, � � �� Sig a Pri a .Street Address _ `%41, Signature Printed Name Street Address. tq 95D Street Address Street �-A(u Address 1—bOS- Printed Name Street Address MaryirV IVO rmcK, Printed Name Gl rD 4_e Printed Name 11 R-.-- -- wn - �--m - - M—�- Signature Signature I' " .' WA J, d a J- o w pm -e. 7!2 - Printed Name Street Address 17onno�- m Cfaid< ?1'4-0 (: esn+ -Df-- LC Printed Name Street Address {yi c co eie- 6,qe-bczq.Lt, ? ?ezo lc-tz-,54 Dr- Printed Name Street Address Bktev, 7 -e Printed Name Street Address Printed Name Street Address Printed Name Street Address Printed Name Street Address rinted Name V Street Address �V,,-e —A C� 1 5--�> or�,u-e Printed Name Street Address Signature Printed Name Street Address 14w T4ht " AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: FEBRUARY 3, 2004 ITEM TITLE: Demand Register Dated February 3, 2004 BUSINESS SESSION CONSENT CALENDAR STUDY SESSION PUBLIC HEARING RECOMMENDATION: Approve Demand Register Dated February 3, 2004 BACKGROUND: Prepaid Warrants: 57017 - 57032) 13,579.46 57033 - 57053) 98,481.15 Wire Transfers} 550,663.87 P/R 31850 - 318761 132,228.79 P/R Tax Transfers} 40,650.47 Payable Warrants: 57054 - 57164} 595,915.08 $1,431,518.82 FISCAL IMPLICATIONS. Demand of Cash -City $1,121,719.92 Demand of Cash -RDA $309,798.90 Falconer, Finance Director 13 CITY OF LA QUINTA BANK TRANSACTIONS 1/15/04 - 1/27/04 1/15/04 WIRE TRANSFER - LAND PURCHASE $211,505.08 1/16/04 WIRE TRANSFER - ICMA $11,866.60 1/16/04 WIRE TRANSFER - PERS $20,581.87 1/22/04 WIRE TRANSFER - RDA ESCROW $40,000.00 1/06/04 WIRE TRANSFER - LAND PURCHASE $266,710.32 TOTAL WIRE TRANSFERS OUT $550,663.87 14 2 'i er In 1 0 1 1 0 0 0 o m r o 0 0 o N N o 0 \ I r o o w , O O N N N O Ifl CO N r In O %D 0 7 N W 1 F I ri N N N rl N N 14 N t!1 rl 1 I N DI Q 1 I O 1 , H I I W Q I 1 UI pp i �i Z i z a 1 H I H 1 � 1 s s 4 s i k s t t s • s s • 1 g 1 i�ao0 00 00 0o Nlnmm rr o0 00 000 0o NN mwN 00 00000 0 \ , rr 00 00 In In w0,'/�D Uf In o 0 00 rnn,D U1N rf rf mwrf OO wN fo 11M O p� U , R 1 0°m , ww OO OO NN wrfNN U11n OO InN ,D'im NN rr ,D OD in OO Meh 01 O,D O 1 H , /11P1 nr 00 MN mm m N OO m in M M N frw O\ fT N N Iq ON 1'i'i Nm OIAn N I [r Q I ri ei N N N N N 'i e'1 rl N ,-I 'i O Ul N N m 1!1 N N ~ Ii N I H O f 1 � 1 1 EI 1 1 , I I I , I I N n O Of O w w N O N O 'i N 'i HO rl 'i 'i m 'a O N WI o N p; I 1 In I!1 N rl w rf n O O e'f rf rf fn w N N N men rf rf t1 1 , M N N N 'i 'f H - H 'd M 14 r4 H ri ''I 'i M H 'i ei ri 14 1 , ei H N 14 m N N w N N N m u1 O N N N NM 1 , w w r1 N wwdl w fn M ww w w ww N wwww w I u t m o a w w w '+ pQ I U I O O O O O N N O O O 0 m O O cc O V1 1f1 If1 1I1 O O O OOO O O O OO O O 00 O 0000 O T 0 rf N N N 1'i ID T T n elf rf m O N N N T rf 1 1 I 1 1 I I 1 I 1 I I i 1 1 I I I 1 'If1 I I O O O 0 000 O O O 00 o O 00 o 0000 0 'i Ii 'i N 1'1 r1 Ii .i ''I '1 ei 'i r♦ H rl 'i e-1 'i 'i Id .-I 1.1 1 , I' , F D7 i i H 1 1 pOq i a a w w aaa a a a w w w If w w a a a , 1 0 0 0 0 000 0 0 0 00 0 0 00 0 0 0 0 0 0. 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VENDOR VENDOR NUMBER ID DATE AMT. PAID NUMBER NAME 56817 DEF 12/22/03 270.00 NUN100 ANICETO NUNEZ TOTAL VOIDED 270.00 11:07AM 01/23/04 PAGE 1 INVOICE DESCRIPTION SOCCER OFFICIAL 343 c&ttp 4 .fPQu&rw COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Adoption of a Resolution Granting Conditional Approval of a Final Map and Subdivision Improvement Agreement for Tract Map No. 29323-2, Esplanade Phase 2, Lennar Homes of California, Inc. RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: ;1— STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29323-2, Esplanade Phase 2, Lennar Homes of California, Inc. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 29323-2 is generally located north of Fred Waring Drive and west of Jefferson Street (Attachment 1). This residential development will consist of 74 lots on approximately 20 acres (Attachment 2). On July 2, 2002, the Council approved Tentative Tract No. 29323. The developer has requested the City Council's conditional approval of the Final Map (Attachment 2) which will allow 30 days for completion of its processing. To date, the SIA (Attachment 3) has been executed by the developer but the associated securities have not yet been received. The Final Map is technically complete and is being routed for signatures. The developer expects that the associated securities and all signatures will be in place within the time allowed for its conditional approval. 44 t S-\ritvMnr\STAFF RFPnRTS nNl Y\r 1 .dnr. As a result, City staff has prepared the attached Resolution which provides for conditional approval of the Final Map and SIA. The approval is contingent upon receipt within 30 days (March 4, 2004), of a technically correct Final Map, suitable for recording by the County Recorder, with all required signatures (except the City Clerk) and associated securities. Once these items are received, the City Clerk will affix the City Seal to the Final Map and offer the Final Map for recording by the County Recorder. If any of the required items are not received by City staff within the specified time frame, the Final Map will be considered disapproved and will be rescheduled for City Council consideration only after all required items have been received. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreements (SIA) for Tract Map No. 29323-2, Esplanade Phase 2, Lennar Homes of California, Inc.; or 2 Do not adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreements (SIA) for Tract Map No. 29323-2, Esplanade Phase 2, Lennar Homes of California, Inc.; or 3 Provide staff with alternative direction. Respectfully submitted, 4 mothy R. J na n, P. E. Public Works Director/ City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Tract Map 3. Subdivision Improvement Agreement 2 45 TAPWDFPT\r01JNCII \9004\09-03-04\r 1.dnr. RESOLUTION NO. 2004-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING CONDITIONAL FINAL MAP APPROVAL OF TRACT MAP NO. 29323-2, ESPLANADE PHASE 2, LENNAR HOMES OF CALIFORNIA, INC., AND AUTHORIZING A TIME EXTENSION FOR SATISFACTORY COMPLETION OF THE CONDITIONAL REQUIREMENTS TO VALIDATE THE APPROVAL WHEREAS, the City Council conducts only two regular meetings per month and the time interval between these meetings occasionally creates an undue hardship -for business enterprises and individuals seeking approval of subdivision maps; and WHEREAS, the City Council, as a matter of policy, allows a subdivider to have City staff present the map for approval consideration when the requisite items necessary for final map approval are nearly, but not completely, finished thus yielding to the subdivider additional production time for preparation of those items; and WHEREAS, the subdivider has demonstrated to City staff and the City Council that it has made sufficient progress with items required for final map approval, and it is reasonable to expect the subdivider to satisfactorily complete the items, including City staff review time, within thirty (30) days without adversely impacting other ongoing work commitments of City staff; and WHEREAS, Section 66458(b) of the Subdivision Map Act grants the City Council broad authority to authorize time extensions regarding final map approval, or disapproval, upon receiving it for consideration; and WHEREAS, the City Council relies on professional City staff to review all required items for conformance with relevant requirements, and it is therefore appropriate for the City Council to approve the final map subject to review and confirmation of the required items by professional City staff, within a reasonable period of time as specified by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The final map for Tract Map 29323-2 is conditionally approved provided the subdivider submits all required items on or before March 4, 2004. 3 '� s Resolution No. 2004- Tract Map No. 29323-2, Esplanade Phase 2 Adopted: February 3, 2004 Page 2 Section 2. The City Council's approval of the final map shall not be considered valid until the City Engineer has signed the map indicating that it conforms to the tentative tract map, the Subdivision Map Act and all ordinances of the City. Section 3. The City Engineer shall withhold his signature from the map until the subdivider has completed the following requirements to the City Engineer's satisfaction. A. Place appropriate securities in accordance with the approved Subdivision Improvement Agreement. B. Finalize the final Tract Map and obtain all necessary signatures. Section 4. The City Clerk shall withhold affixing the City Seal to the map title page, along with her attesting signature, until the City Engineer has signed the map. Section 5. The time extension for satisfying the requirements of the conditional approval for this final map shall expire when City offices close for regular business on March 4, 2004. If the subdivider has not satisfied the requirements in Section 3, herein, by the expiration deadline, the final map shall be considered disapproved. Disapproval does not deny any rights the subdivider may have under the Map Act to resubmit the final map for approval, or disapproval. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of February 3, 2004, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: None ABSENT: None ABSTAIN: None DON ADOLPH, Mayor City of La Quinta, California 47 4 Resolution No. 2004- Tract Map No. 29323-2, Esplanade Phase 2 Adopted: February 3, 2004 Page 3 ATTEST: JUNE S. GREEK, CMC, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California ATTACHMENT 1 19.46 ACRES GROSS ti % COUNTRY CLUB DRIVE BERM UDA DUNES Ff?CU CT LOCH SEC. 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RECITALS: A. Subdivider has prepared and filed a final map or TRACT map (the "Map") of a unit of land in the City of La Ot inta, County of Riverside, which unit of land is known as TRACT No. 29323-2 (the 'TRACT") pursuan to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivi ion Map Act"). B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private i provements (the "Improvements"). C. The Imp�ovements have not been installed and accepted at this time. D. It is they fore necessary that Subdivider and City enter into an agreement for the installation of the Improve tints as provided in Section 66462 of the Subdivision Map Act. NOW, THE4EFORE, it is agreed by and between the parties hereto as follows: 1. Im rove n 'nt Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish c riganal improvement plans meeting the requirements of the City Engineer. 2. Im rove ants. Subdivider shall construct the public and private street, drainage, utility, landscaping, and oth r improvements required to be constructed or agreed to be constructed under this Agreem nt. as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specific tions, sequence, and scheduling of construction shall be as approved by the City Engineer. 3. A. Onel class of security to be provided by Subdivider; hereinafter referred to as "performance sec rity," shall assure the faithful performance of this Agreement including construction of the Improvements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory Improvements"), and payment of plan check and permit fees A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, equipment and materials supplied to construct the Improvements. A third class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year following the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a con ition of City Council approval of the Map. Subdivider shall provide warranty security after Imp ovements are complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Mon Umentation or Participatory Improvements. However, the City may utilize Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act. As r art of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including reas nable attorney's fees, incurred by City in successfully enforcing the obligations thereby 13 Jr s 1 of 7 i B. Improvement security shall conform with Section 66499 of the California Government Code and one r more of the following: 1) A clash deposit with City or a responsible escrow agent or trust company, at City's option. 2) 3urety bonds, of the form specified in subsection 66499.2 of the California Government ode, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 latest version). 3) ertificates of deposit, in City's name, from one or more financial institutions subject to egulation by the state or federal government and. having a financial quality rating of "A" or etter and a commitment reliability rating of "R-2" or better on the Investment Data Exchange of the Los Angeles County Treasurer's office). 4) irrevocable letters of credit, issued by one or more financial institutions meeting the equirements of Paragraph (3), pledging that the funds necessary to carry out the completion f the Improvements are on deposit, guaranteed for payment, and constitute a trust fund hich is not subject to levy or attachment by any creditor of the depositor until released by ity. Letters of credit shall guarantee that all or any portion of the funds available pursuant to he, letters of credit will be paid upon the written demand of City and that such written demand eod not present documentation of any type as a condition of payment, including proof of ss. The duration of any such letter of credit shall be for a period of not less than one year rom the execution of the agreement with which it is provided and shall state, on its face, that heletter of credit will be automatically renewed until such time that City authorizes its xpiration or until sixty (60) days after City receives notice from the financial institution of ntent to allow expiration of the letter of credit. 5) k lien upon the subdivided property, if City finds that it would not be in the public interest to equire the installation of the Improvements sooner than two (2) years after recordation of the anal map or TRACT map for which the Improvements are required. The lien shall provide a oliateral value of three (3) times the estimated cost of the Improvements and shall include he, power of sale of the real property, all buildings and improvements thereon, or that may be rected upon or made thereto, together with all hereditaments and appurtenances thereunto elonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and rofits thereof. The collateral value of the property shall be established at Subdivider's xpense through an appraisal approved by City. 6) instrument of credit from an agency of the state, federal or local government, when any gency of the state, federal, or local government provides at least Twenty Percent (20%) of he: financing for the Improvements. 7) �hen Subdivider is a non-profit organization, security may be negotiable bonds, of the kind �pproved for securing deposits of public moneys with City or in favor of City, as specified in eetion 16430 of the California Government Code, deposited, at City's option, with City or a tesponsible escrow agent or trust company. C. All s curities shall be furnished in accordance with the provisions of Exhibit A. The amount of the pert rMance security shall equal One Hundred Percent (100%) of the estimated cost of con tructing the Improvements, including payment of plan check and permit fees, as estimated by the ity Engineer or a duly authorized representative of the City Engineer. The amount of Payr ieht security shall equal the amount of the amount of performance security, except as othe ise set forth in Exhibit A, and shall be fumished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in'Exhibit A. D. At tt e time of submittal of security, Subdivider shall pay to City administrative fees applicable to the orm of security provided. Administrative fees shall apply to the subdivision (final map, TRACT map or waiver of TRACT map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source (surety or financial institution) of seCL rity initially submitted and for substitution of securities but shall not be required for submittal 57 14 2ay of w�rronty security if the warranty security is of the same form and from the same source as the perf mfiance security it replaces. Administrative fees for security shall be as follows: 1) of certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and bf SECTION 3.6., which require the establishment of evidence of the reliability of the urety or financial institution, the administrative fee shall be One Hundred Fifty Dollars $1150.00). 2) o� liens on real property as described in Paragraph 5) of SECTION 3.6., for which City will r�pare lien agreements and subordination agreements, administer valuation of the real r perty and administer the agreements over the life of the lien, all of which require legal s4istance and financial advice, Subdivider shall pay to City an administration fee of One Half f One Percent (0.5%) of the estimated cost of the improvements secured but not less than ivje Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) Fot other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual Oosts are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the ;Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Sub ivjder's share of the cost of the Participatory Improvements. Payment security and warranty sec rity shall not be required for Participatory Improvements. Upon 'written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the I s er of: 1) the amount demanded, or 2) the amount of the security. F. Sec rit shall not expire, be reduced or become wholly or partially invalid for any reason, inclu di g non-payment of premiums, modifications of this Agreement and/or expiration of the time for a ormance stated in this Agreement, without express authorization from City unless the surety 'provides City with sixty (60) days written notice by registered or certified mail, return G. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or poroval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) rh City Engineer may authorize partial reduction of performance security as work )rc igresses, upon application by Subdivider. However, no such reduction shall be for an ount less than Ten Percent (10%) of the total performance security provided for the faithful )ei formance of the act or work. In no event shall security be reduced below that required to u rantee the completion of the act or work or obligation secured, plus Ten Percent (10%). he City Engineer shall not allow more than two partial reductions of security furnished for ny improvement agreement. 3) Danticipatory Improvement security shall be _released upon payment by Subdivider of updivider's share of the cost or estimated cost of the Participatory Improvements. 4) f City receives no notice of recorded claims of lien, labor and materials security shall be eloased in full 90 days after final acceptance and/or approval by the City Council, of the m rovements. If City receives notice of any recorded lien, the provisions of the �Aop Act shall apply. 5) 4rranty security not utilized during the warranty period shall be released one year after final c eptance or approval by the City Council of all Improvements. However, if at the end of the no -year warranty period, there are one or more outstanding requests by City for 58 er ormance of work or provision of materials under the terms of the warranty, 1 arranty 3 of 7 security shall be retained until the outstanding requests are satisfied or until Subdivider has �de other arrangements satisfactory to the City Engineer. 4. Permits R uired. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall cornpJy with all provisions of the required permits. 5. Off -site Im i brovements. When the construction of one or more of the Improvements requires or necessi t s the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best eff )rts purchase such real property at a reasonable price. In the event that Subdivider is unsucc ss ul, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may req je t in writing that City attempt to acquire such real property. City may, but is not required to, agree tc attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivic erlshall enter a separate written agreement in a form acceptable to the City Attorney. Said separat i agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the a prised fair market value of the real property. Any unexpended portion of said advance shall be refur died to Subdivider. Any additional funds required for acquisition of the real property shall be paid by ubdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failu a of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivi erls obligation to construct the applicable improvement pursuant to this Agreement or the Conditio ris!of Approval. 6. Com le ion of Im rovements. Subdivider shall begin construction of the Improvements within ninety (90) dad s and shall complete construction within twelve (12) months after the approval of this Agreem Int, Portions of the Improvements may be completed at a later date, as determined by the City En inner or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Imp ovements within the specified time periods shall constitute cause for City, in its sole discretio i Ond when it deems necessary, to declare Subdivider in default of this agreement, to revise improvei nont security requirements as necessary to ensure completion of the improvements, and/or to requi odifications in the standards or sequencing of the Improvements in response to changes in stand r s or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect th vplidity of this agreement or Subdivider's obligations hereunder. 7. Force M k 'ure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, ct of God, or other events beyond Subdivider's control, the time limits for obligations affected by such v nts will be extended by the period of such events. 8. Time E tension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms arid conditions of this Agreement. As a cor d0on of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete; at the time of the extension, and to provide warranty security on completed Improve ents. 9. Survev Vionuments. Before final approval of street improvements, Subdivider shall place survey monumentmonumen4 in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the ILa Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the mon irpents have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Ac a tance of Improvements. At the completion of construction and prior to acceptance of the Improve nants by City, Subdivider shall submit a request for final approval by City. The request shall be acco anied by any required certifications from Subdivider's engineers or surveyors, approval letters fr other agencies having jurisdiction over and approval authority for improvements required by this A gr ement or the Conditions of Approval, and any required construction quality documentation not prev ously submitted. 16 4 of 7 �A Upon r elpt of said request, the City Engineer or a duly -authorized representative will review the required d6cumentation and will inspect the Improvements. If the Improvements are determined to be in cc6rdance with applicable City standards and specifications, and as provided herein, obligati nsl required by the Conditions of Approval and this Agreement have been satisfied, and Subdivi erihas provided revised plans as required in Paragraph 11, hereinafter, the City Engineer shall reoorr mend acceptance of the Improvements by the City Council. 11. Revisio s to Plans. When the Improvements have been inspected and approved by the City Engineer, ubdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sleet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvernents thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. Im rove nt Warranty.Subdivider hereby guarantees the Improvements to City for a period of one (1) year, b ginning on the date of final acceptance of the Improvements by the City Council, against any def ctyve work or labor done, or defective materials furnished, and shall repair or replace such defectiv 'Work or materials. 13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 f this agreement. Prior to the release of payment security, the City Engineer may require Subdivi er to provide a title report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security released. 14. Cit Riaht to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been pe rfo ad within sixty (60) days after written notice of default from City, then City may perform the obli ati n, and Subdivider shall pay the entire cost of such performance by City including costs of suit anc reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergei icyor compelling public interest, as determined by the City Engineer, the requirement for written r oti a of default and/or the passage of sixty (60) days shall be deemed waived and all other provisio s of this Article shall remain in effect. 15. Indemni is tion. Subdivider hereby binds itself, its officers, employees, agents, representatives, executo s, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and itf officers, employees, agents, representatives, and assigns harmless from and against any losses, la ms, demands, actions, or causes of action of any nature whatsoever, arising out of or in any wa 1 connected with Subdivider's performance herein under, including costs of suit and reasona lej attomeys' fees. 16. No Mod fication of Conditions. This Agreement shall in no respect act to modify or amend any provisio cf the Conditions of Approval. In the event that any requirement or condition of this Agreem nti is inconsistent with or fails to include one or more provisions of the Conditions of Approva , which document(s) is (are) incorporated herein by reference, the provisions in the Conditioi is Of Approval shall remain in effect and shall control. 17. Severab lit'. In the event that any provision or provisions of this Agreement are held unenforceable, all grovi io s not so held shall remain in full force and effect. `tJ A. All n ties pursuant to this Agreement shall be in writing and shall be personally delivered or sent by r aglstered or certified mail, return receipt requested,. to the parties at their respective add s es indicated hereon. Notices personally delivered shall be effective upon delivery. Noti a mailed as provided herein and sent postage prepaid shall be effective upon the date of deliv 3 or refusal indicated on the return receipt. Either party may change its address for notices here noer by notice to the other given in the manner provided in this subparagraph. B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, ecutors, administrators, assigns, and successors of the parties hereto. F A 17 6of7 C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This fgreement shall be governed by and interpreted with respect to the laws of the State of Cali orhia. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing pa s;all be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing part F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS, *HEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of ILa Quinta 78 9� Calle Tampico La 00ta, CA 92253 760 77 -7075 Thomas P. Genovese, City Manager Date ATTEST: City Clerk Local Adc rf 'ss Principal Address Lennar Hom s of California, Inc. Lennar Homes of California, Inc. 5000 Calle c ar Raphael, Suite C-5 24800 Chrisanta Drive Palm Spring , CA 92264 Mission Viejo, CA 92691 (760) 325-4 8 By: I.12•oy Date Title: IJI oN 1 Me'SIDeWr By: Date Title: Reviewed arid Approved: City Approved as to Form: City Attome Date Date 61 18 6of7 released as As element necessary of perform Requests shall be m Labor & m complete Street Iml Sanitary Domestic Totals Standard 1 Total Cons No Plans Bond Exhibit A SECURITY — TRACT MAP NO.29323-2 ON -SITE IMPROVEMENTS s designated as. "Participatory" have been or will be constructed by others. Security for Improvements shall remain in place indefinitely until called upon or released by City. on security shall guarantee performance of or payment for the work and shall be utilized or ;ppcified in Chapter 4, Article 9 of the Subdivision Map Act. of the work are completed, Subdivider may request a maximum of two partial releases of ecurity. Partial releases shall be for not less than ten percent (10%) of the total s curity for the TRACT and shall not reduce total performance security below the amount c mplete the Improvements plus ten percent (10%) of the original amount. Partial releases ce security will be evaluated and may be granted, in whole or in part, by the City Engineer. 1partial releases, setting forth in detail the amount of work completed and the value thereof, In writing to the City Engineer. Wials security shall remain in place until 90 days after all required TRACT improvements are I eccepted by the City Council. lhent Description Performance Labor & Materials bments $ 229,760 $ 229,760 it $ 164,970 $ 164,970 der $ 275,390 $ 275,390 in $ 11,100 $ - $ 681,220 $ 670,120 1 Contingencey $ 68,120 $ 67,000 Don Cost $ 749,340 $ 737,120 fees, Design 10% $ 74,930 $ 73,710 lees, Const 10% $ 74,930 $ 73,710 finnencv 10% $ 74,930 $ 73,710 $ 974,100 $ 958,300 62 19 7 T41,J1 4 XP aaberaj AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 3, 2004 BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Granting Conditional Approval of a Final Map and Subdivision CONSENT CALENDAR: Improvement Agreement for Tract Map No. 29894-4, Hideaway Phase 4, ND La Quinta Partners, LLC STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-4, Hideaway Phase 4, ND La Quinta Partners, LLC. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 29894-4 is generally located west of Madison Street between Avenue 52 and Avenue 54 (Attachment 1). This residential development will consist of 81 lots on approximately 41 acres (Attachment 2). On November 21, 2000, the Council approved Tentative Tract No. 29894. The developer has requested the City Council's conditional approval of the Final Map which will allow 30 days for completion of its processing. To date, the SIA (Attachment 3) has been executed by the developer but the associated securities have not yet been received. The Final Map is technically complete and is being routed for signatures. The developer expects that the associated securities and all signatures will be in place within the time allowed for its conditional approval. 63 S:\ritvMnr\STAFF RFPnRTS nNl Y\r 7_rinn As a result, City staff has prepared the attached Resolution which provides for conditional approval of the Final Map and SIA. The approval is contingent upon receipt within 30 days (March 4, 2004), of a technically correct Final Map, suitable for recording by the County Recorder, with all required signatures (except the City Clerk) and associated securities. Once these items are received, the City Clerk will affix the City Seal to the Final Map and offer the Final Map for recording by the County Recorder. If any of the required items are not received by City staff within the specified time frame, the Final Map will be considered disapproved and will be rescheduled for City Council consideration only after all required items have been received. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-4, Hideaway Phase 4, ND La Quinta Partners, LLC; or 2 Do not adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-4, Hideaway Phase 4, ND La Quinta Partners, LLC; or 3 Provide staff with alternative direction. Respectfully submitted, Ti othy R. J asso , .E. ublic Works irecto / City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Tract Map 3. Subdivision Improvement Agreement 2 64 gAritvMnr\STAFF RFPnRTS ON[ Y\r 7xinn RESOLUTION NO. 2004-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING CONDITIONAL FINAL MAP APPROVAL OF TRACT MAP NO. 29894-4, HIDEAWAY PHASE 4, ND LA QUINTA PARTNERS, LLC, AND AUTHORIZING A TIME EXTENSION FOR SATISFACTORY COMPLETION OF THE CONDITIONAL REQUIREMENTS TO VALIDATE THE APPROVAL WHEREAS, the City Council conducts only two regular meetings per month and the time interval between these meetings occasionally creates an undue hardship for business enterprises and individuals seeking approval of subdivision maps; and WHEREAS, the City Council, as a matter of policy, allows a subdivider to have City staff present the map for approval consideration when the requisite items necessary for final map approval are nearly, but not completely, finished thus yielding to the subdivider additional production time for preparation of those items; and WHEREAS, the subdivider has demonstrated to City staff and the City Council that it has made sufficient progress with items required for final map approval, and it is reasonable to expect the subdivider to satisfactorily complete the items, including City staff review time, within thirty (30) days without adversely impacting other ongoing work commitments of City staff; and WHEREAS, Section 66458(b) of the Subdivision Map Act grants the City Council broad authority to authorize time extensions regarding final map approval, or disapproval, upon receiving it for consideration; and WHEREAS, the City Council relies, on professional City staff to review all required items for conformance with relevant requirements, and it is therefore appropriate for the City Council to approve the final map subject to review and confirmation of the required items by professional City staff, within a reasonable period of time as specified by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The final map for Tract Map 29894-4 is conditionally approved provided the subdivider submits all required items on or before March 4, 2004. 3 65 Resolution No. 2004- Tract Map No. 29894-4, Hideaway Phase 4 Adopted: February 3, 2004 Page 2 Section 2. The City Council's approval of the final map shall not be considered valid until the City Engineer has signed the map indicating that it conforms to the tentative tract map, the Subdivision Map Act and all ordinances of the City. Section 3. The City Engineer shall withhold his signature from the map until the subdivider has completed the following requirements to the City Engineer's satisfaction. A. Place appropriate securities in accordance with the approved Subdivision Improvement Agreement. B. Finalize the final Tract Map and obtain all necessary signatures. Section 4. The City Clerk shall withhold affixing the City Seal to the map title page, along with her attesting signature, until the City Engineer has signed the map. Section 5. The time extension for satisfying the requirements of the conditional approval for this final map shall expire when City offices close for regular business on March 4, 2004. If the subdivider has not satisfied the requirements in Section 3, herein, by the expiration deadline, the final map shall be considered disapproved. Disapproval does not deny any rights the subdivider may have under the Map Act to resubmit the final map for approval, or disapproval PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of February, 2004, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: None ABSENT: None ABSTAIN: None DON ADOLPH, Mayor City of La Quinta, California 4 Resolution No. 2004- Tract Map No. 29894-4, Hideaway Phase 4 Adopted: February 3, 2004 Page 3 ATTEST: JUNE S. GREEK, CMC, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California I, 5 67 ATTACHMENT 1 *IS 30MON 3Ad NOSIOdW 9 r Q � LO 0 IS Nosa3JA3r vv Nosiadw co mi ATTACHMENT 2 11 it lot,' e 7 14 1iP $ iE 8 ! a gi ¢ SIR $v w �y g ri t ji, S� L1 WINE a � �a& W n d i � a U \ 1001101 w AP1W n 0 id Td Am[ Yw}.wl tly� VJ ig N 1L! I i - mus ►oslarn31 a ei>i ii B u a O� 41 vxro n/ v III �j ! £ £ £ �a U a IMp III !� g — a o 2.0 m �y U W I !L }— IE (n S kI I� � � dsly II �,I� �j m IIl £fit � j 6 I m Ila a 31 s �w j'L gl doll I Im ana => I - • 1 I n m I l g I ?a�91 jl� r,a�a u i is a I g ��y11-%111111A i _ ii�M rl aTrr^�. a 3,tI� C E X r•l�rT.,` , I i CppC � � � 17 .11 666 1,. ♦RIN tiw}„w w+vmnwan r}� w aiaa, •a r vm. 0111111 IrWi V 1338 S NOS83dl3f L� / 91./1.9 'S•H 69 7 CITY OF LA QUINTA ATTACHMENT 3 SUBDI vIS/ON IMPROVEMENT AGREEMENT TRACT MAP NO. 29894-4 ON -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this day of by and between ND La Quinta Partners, LLC a Delaware limited liability company hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is known as Tract No. 29894-4 (the "Tract") pursuant to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map Act"). B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the "Improvements"). C. The Improvements have not been installed and accepted at this time. D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the Improvements as provided in Section 66462 of the Subdivision Map Act. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish original improvement plans meeting the requirements of the City Engineer. 2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping, and other improvements required to be constructed or agreed to be constructed under this Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer. 3. Improvement Security. A. One class of security to be provided by Subdivider, hereinafter referred to as "performance security, shall assure the faithful performance of this Agreement including construction of the Improvements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory Improvements"), and payment of plan check and permit fees. A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, equipment and materials supplied to construct the Improvements. A third class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year following the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a condition of City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Monumentation or Participatory Improvements. However, the City may utilize Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act. As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including 70 TAProject Development Division\Development ProjectsAgreementskSIMSIAs in Progress\Hideaway 29894-CONSITE_SIA.doc 1 of 7 reasonable attorneys fees, incurred by City in successfully enforcing the obligations thereby secured. B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that .the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or Tract map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an appraisal approved by City. 6) An instrument of credit from an agency of the state, federal or local government, when any agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the Improvements. 7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract r1 map or waiver of Tract map) rather than to individual security instruments. The fees shall bg paid r 1 T:\Project Development Division0evelopment ProjectsWgreements\SIA\SIAs in Progress\Hideaway 29894-4\ONSITE_SIA.doc 2of7 separately for each different form and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for submittal of warranty security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.13., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty security shall not be required for Participatory Improvements. Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice by registered or certified mail, return receipt requested. G. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or approval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) The City Engineer may authorize partial reduction of performance security as work progresses, upon application by Subdivider. However, no such reduction shall be for an amount less than Ten Percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 3) Participatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) Warranty security not utilized during the warranty period shall be released one year after final acceptance or approval by the City Council of all Tract Improvements. However, if at,tthOe end 7 40 TAProject Development Division0evelopment Projec ts\Agreements\SIA\SIAs in Progress\Hideaway 29894-4\ONSRE_SIA.doc 3 of 7 of the one-year warranty period, there are one or more outstanding requests by City for performance of work or provision of materials under the terms of the warranty, warranty security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required r•� 11 ! 34or, TAProJect Development Division\Development ProJects\Agreements\SIA\SIAs in Progress\Hideaway 29894-4\ONSITE SIA.doc by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with applicable City standards and specifications, and as provided herein, obligations required by the Conditions of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or Record Drawing, the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor done, or defective materials furnished, and shall repair or replace such defective work or materials. 13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security released. 14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of suit and reasonable attorneys fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall remain in effect. 15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives, executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and its officers, employees, agents, representatives, and assigns harmless from and against any losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way connected with Subdivider's performance herein under, including costs of suit and reasonable attorneys' fees. 16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any provision of the Conditions of Approval. In the event that any requirement or condition of this Agreement is inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 18. General Provisions. A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices 7 A hereunder by notice to the other given in the manner provided in this subparagraph. ,t 12 T:\Project Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Hideaway 29894-4\ONSITE SIA.doc Sof7 .n B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 Thomas P. Genovese, City Manager Date ATTEST: City Clerk ND La Quinta Partners, LLC 81-100 Avenue. 53 P.O. Box 980 La Quinta, CA 92253 i , (7f0)01-5072 By: Title: By: Title: Reviewed and Approved: City Engineer Approved as to Form: Date l ILI /0, - Date Date 75 City Attorney Date TAProject Development Divlsion\Development Projects\Agreements\SIA\SIAs In Progress\Hideaway 29894-4\ONSITE_SIA.doc 13 80 Exhibit A SECURITY — TRACT MAP NO. 29894-4 Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Grading $ $ 145,500 $ $ 145,500 Drainage Street Improvements $ $ $ 264,543 384,215 Domestic Water $ $ 384, 384 ,215 215 3,8 $ 365,785 Sanitary Sewer $ 89 $ 89,180 Dry Utilities $ ,180 27,500 $ _ Monumentation $ 1,276,700 $ 1,249,222 Totals Standard 10% Contingencey $ 0 $ $ 124,900 1,374,122 Total Construction Cost $ 1401401600 ,, Professional Fees, Design 10% $ 140,200 $ $ 137,400 137,400 Professional Fees, Const 10% $ 140,200 No Plans Contingency 25% $ 350,400 $ 343,500 Bond Amount $ 2,032,400 $ 1,992,422 76 14 7of7 TAProjW Development Divlsion\Development Projects\Agreements\SIA\SIAs in Progress0deaway 298944\ONSITE SIA.doc T4tJJ1 q1 XPQUMrw COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Approval of a Request for Proposals to Obtain Professional Construction Management Services for the Municipal Library, Project No. 2000-06 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: -4 STUDY SESSION: PUBLIC HEARING: Authorize staff to distribute a Request for Proposals (RFP) to obtain professional construction management services for the Municipal Library, Project No. 2000-06, and appoint a Consultant Selection Committee. FISCAL IMPLICATIONS: The following represents the project's approved funding and funding sources: Funding Source Amount Library DIF $4,301,676 County Library DIF $400,000 Library Fund $409,137 Sub -Total $ 5,1 10,813 Less Expenditures as of 12-31-03 ($324,371) Total Funding Available: $4,786,442 The following represents the estimated costs to complete the project: Construction $4,075,000 Design $175,000 Construction Management (Inspection/Test/Survey) $153,000 Administration $134,137 Contingency $249,305 Total $4,786,442 77 As illustrated, adequate funding is available to support staff's recommendation. CHARTER CITY IMPLICATIONS: Construction for the Municipal Library is currently proposed to be funded with 100% local developer impact fees. The City is not required to advertise the proposed improvements with prevailing wage requirements. Costs savings may be realized during the construction phase of the project. BACKGROUND AND OVERVIEW: The project site is located within the La Quinta Civic Center Campus, north of the Senior Center and west of City Hall. Phase I construction of the Municipal Library includes a 20,000 square foot building shell of which 10,000 +/- square feet will be finished, furnished and equipped for use. The interior of the unfinished space will include rough wiring, lighting, dry wall, etc., but will not, however, be occupied until the needs of the Library are expanded. Mass grading of the project site was completed during the construction of the Civic Center Campus Improvements. The existing parking lot will be modified to allow for handicap parking and access by service and emergency vehicles. On April 17, 2001, the City Council approved the distribution of an RFP for Architectural Design and appointed a consultant selection committee. On November 6, 2001, the City Council approved a Professional Services Agreement (PSA) in the amount of $514,707 to prepare the plans, specifications and estimates (PS&E) for the La Quinta Municipal Library, Project No. 2000-06. The project's 85% design submittal has been reviewed and the Project Architect is responding to the City's comments. The 100% design submittal is anticipated in mid -February 2004. Staff believes it is now time to obtain professional construction management services for the Municipal Library. Among other duties, the Construction Manager will perform a "third" party constructability review, which staff believes will guard against and minimize construction contract change orders. The proposed RFP to obtain professional construction management services is provided at Attachment 1. The Consultant Selection Process outlined within City Resolution 96-80 shall be followed. In accordance with Resolution 96-80, the City Council is notified of the potential need to contract for professional services in excess of $10,000. 2 78 Staff suggests the City Council appoint a Consultant Selection Committee consisting of the following members: - Tim Jonasson, P.E., Public Works Director/City Engineer - Tom Hartung, Building & Safety Director - John Freeland, Senior Engineer - Nick Nickerson, Project Manager Contingent upon City Council authorization to distribute the attached RFP on February 3, 2004, the following represents how the project is expected to proceed: Issue RFP Proposal Due Date Consultant Selection Process Recommendations to City Council Consultant Constructability Review Finalize PS&E Council Authorize Bid Advertisement Council Award Construction February 3, 2004 March 3, 2004 March 4-15, 2004 March 16, 2004 March 20, 2004 — April 9, 2004 April 12-23, 2004 May 4, 2004 — June 9, 2004 June 15, 2004 FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize staff to distribute a Request for Proposals to obtain professional construction management services for the Municipal Library, Project No. 2000-06 and appoint a Consultant Selection Committee; or 2. Do not authorize staff to distribute a Request for Proposals to obtain professional construction management services for the Municipal Library, Project No. 2000-06 and do not appoint a Consultant Selection Committee; or 3. Provide staff with alternative direction. Respectfully submitted, 4lmothy . Jon on, P.E. Public Works Director/City Engineer -79 K3 Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Request for Proposal (RFP) 4 so CITY OF LA QUINTA REQUEST FOR PROPOSAL CONSTRUCTION MANAGEMENT SERVICES LA QUINTA MUNICIPAL LIBRARY PROJECT NO. 2000-06 The City of La Quinta seeks proposals from Professional Engineering and/or Construction Management firms to provide Professional Construction Management services to support Capital Improvement Project No. 2000-06, the City of La Quinta Municipal Library. PROJECT DESCRIPTION The project site is located within the La Quinta Civic Center Campus, north of the Senior Center and west of City Hall. A vicinity map is provided at Attachment 1. Phase I construction of the La Quinta Municipal Library includes a 20,000 square foot building shell of which 10,000 +/- square feet will be finished, furnished and equipped for use. The interior of the unfinished space will include rough wiring, lighting, dry wall, etc., but will not, however, be occupied until the needs of the Library are expanded. Mass grading of the project site was completed during the construction of the Civic Center Campus Improvements. The existing. parking lot will be modified to allow for handicap parking and access by service and emergency vehicles. SERVICES TO BE PROVIDED (shall include, but may not be limited to) Construction Management: • Perform a complete "third" party constructability review of the project bid documents, specifications, plans and estimates prior to bidding the project and identify potential problems that need correction before the project is bid. • Review contract documents, and coordinate permit requirements. • Schedule and attend a field walk with the Inspector, Project Architect, Design Team Members and City representatives. • Schedule and chair a kick-off meeting with the City to discuss the proposed work plan and special concerns to be presented at the pre -construction meeting. It is envisioned the pre -construction meeting will include all interested parties, including utilities, sub -contractors, etc. • Provide a pre -construction agenda to the City for concurrence, schedule a pre -construction meeting and notify attendees. 5 • Provide coordination of project activities and prepare reports and documents, as necessary, for City review and action. • Maintain at the project site, on a current basis, a record copy of all contracts, drawings, specifications, addenda, change orders and other modifications, in good order and marked to record all changes made during construction; shop drawings, product data; samples; submittal; purchases; materials; equipment; applicable handbooks; maintenance and operating manuals and instructions; other related documents and revisions which are relevant to the contract work. • Provide weekly status reports to the City. • Review laboratory, shop and mill test reports of materials and equipment, and coordinate as required with the Project Design Team. • Prepare and send a Weekly Statement of Working Days to the Contractor. • Monitor Contractor and Sub -Contractor certified payroll. • Monitor and document any underground electrical improvements for compliance with the project plans specifications and for requirements from Imperial Irrigation District. • Monitor and document domestic water or sanitary sewer improvements for compliance with the project plans and specifications and for any requirements from Coachella Valley Water District. • Administer the construction contract in conformance with the requirements set forth in the Plans and Specifications. • Conduct weekly construction progress meetings with Design Team, Contractor, Subcontractors, City Staff, affected outside Agencies, general public, business owners, other consultants, etc. to discuss matters such as procedures, progress, problems, and scheduling. Prepare and distribute meeting agenda and minutes. • Monitor all inspection activities, both City provided and any consulted out inspections. • Review and process all shop drawings, project data, samples, and other submittals. Establish and implement procedures for expediting the processing and approval. • Coordinate submittal review with Design Team. 84P N • Coordinate with the City Engineer and other City Departments. • Document all claims and maintain account records. • Coordinate and schedule construction surveying. • Coordinate testing requirements and scheduling of material testing. • Review and analyze the Contractor's schedule (monthly) including activity sequences and duration, schedule of submittal and schedule of delivery for products with long lead time. Work with Contractor to maintain the project schedule to show current conditions and suggest revisions as required. • Recommend necessary or desirable changes in the Construction Contractor's scope of work. Review and evaluate Contractor's request for changes. Negotiate with Contractor and submit recommendations to City supported by field data related to any additional work. If change orders are accepted by City, prepare change orders for signature and authorization by the City. Maintain a log of change requests. • Create and maintain "As -Built" project schedule. • Review pay requests and.provide recommendation for contractor payments. • Coordinate the transition of the project to City. • Provide construction management files to the City. Inspection (as needed) • Review contract documents, plans and permits. • Attend field walks and kick-off meetings. • Attend the pre -construction meeting. • Monitor and enforce construction noticing requirements. • Maintain field diaries (bound workbooks) during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs and other documentation. • Monitor the Contractor's fugitive dust control plan and ensure the Contractor is using approved haul routes that are kept clean. 7 83 • Ensure compliance with the construction contract by continuously monitoring, evaluating, approving or rejecting the Contactor's work in accordance with the approved construction contract documents. • Determine that the Contractor's work is being performed in accordance with the requirements of the contract documents. Endeavor to guard City against defects and deficiencies in the work. As appropriate, require special inspection of testing, or make recommendations to City regarding special inspection or testing or work not in accordance with the provisions of the contract document, whether or not such work is fabricated, installed or completed. • Provide and maintain a digital photographic history of the project. Photos will also be taken of the following: a. Showing existing conditions prior to construction b. Disputed work items c. Work that has to be duplicated, replaced or removed d. Completed work e. Extra work • Record the progress of the project. Provide daily inspection reports. Submit written daily progress reports to City, including information on Contractor and the entire project, showing percentages of completion. Keep a daily log containing a record of weather, Contractor's work on site, number of workers, work accomplished, problems encountered, and other relevant data. • During the course of construction, maintain one set of plans with markings and dimensions in red ink to denote field changes or other corrections. • Maintain copies of all permits needed to construct the project and enforce special requirements of each. Engineering Support • Provide an initial review and one re -submittal of shop drawings and product data for conformance to the construction documents. • Provide plan revisions as required to interpret, clarify or modify the construction documents as required by the City Engineer. 84 • 0 Construction Close Out • The City Engineer or designee shall administer and coordinate final inspections. The City Engineer or designee shall coordinate the correction and completion of the work. • Assist the City in determining when the project or a designated portion thereof is substantially complete. Prepare for City a summary of the status of the work of Contractor, listing changes in the previously issued certificates of substantial completion of the work, and recommending the times within which Contractor shall complete uncompleted items on their certificate of substantial completion of the work. • Calculate the amount of final payment due prime Contractor. • Obtain evidence of certification of all lien releases. • Assist City with filing the project "Notice of Completion." • Secure and transmit required guarantees to City.. • Issue the notice of substantial completion and process the Notice of Completion. • Coordinate any startup requirements. • Deliver all equipment manuals, special equipment, spare parts, catalogs, and other materials required by specifications. • Collect As -Built data from contractors or design consultants. • Make recommendation for the release of retention. PROPOSAL FORMAT Proposals (work proposal and cost proposal) are to be submitted in separate envelopes provided by the City, clearly marked with the consultant's name, address and phone number. Only one proposal per consultant will be considered. A pre -proposal conference is scheduled for February 18, 2004 at 10:00 a.m. in the Study Session room of the La Quinta Civic Center (78-495 Calle Tampico, La Quinta, CA 92253). Proposal packages are to be submitted to the City on/or before March 3, 2004 at 5:00 p.m. Proposals received after the stated deadline shall not be accepted. Proposal packages are to be delivered to: Nick Nickerson, Project Manager City of La Quinta Public Works Department 78-495 Calle Tampico La Quinta, CA 92253 Interviews for the most qualified consultants will be scheduled during the week of March 8, 2004. A contract is expected to be awarded to the selected consultant at the City Council meeting of March 16, 2004. Consultants are encouraged to keep their proposals brief and relevant to the specific work required. Proposals shall include the following items: 1. Work Proposal (envelope 1) — submit six (6) copies A. Cover Letter (1) The name, address and phone number of the consultant's contact person for the remainder of the selection process. (2) Any qualifying statements or comments regarding the consultant's proposal, the information provided in the RFP, or the proposed contract. (3) Identification of sub -consultants and their responsibilities. B. Statement of Qualifications (1) A listing of proposed project personnel, including personal experience and resumes for prime and sub -consultants. (2) Consultant's and sub -consultant experience with similar work, including names and current phone numbers of reference for listed projects. 10 C. Project Understanding and Approach A description of your project understanding and how you will approach the project. D. Scope of Work Program A description of the tasks, sub -tasks, and deliverables that will be provided. E. A proposed Project Schedule that will demonstrate the consultant's familiarity with CPM scheduling methods. Please use Microsoft ' Project 98 or later version. 2. Cost Proposal (envelope 2) The consultant is to submit a detailed cost proposal for all services and materials anticipated in completing the project. Man hours and extended billing rates per classification of personnel will be indicated for each task and/or sub -task defined. Selection Process Work Programs will be reviewed by a Consultant Selection Committee. The Committee will rank the consultants for contract negotiations based upon the materials submitted within the Work Proposal. The Committee may choose to interview two or more closely ranked firms. Cost proposals will be opened only after the ranking process is complete. The City will open contract negotiations with the top ranked firm. The successful consultant will be expected to enter into the attached Professional Services Agreement. POE 11 OF fK4 9 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 3, 2004 BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution Granting Conditional Approval of a Final Map and Subdivision CONSENT CALENDAR: J.r' Improvement Agreement for Tract Map No. 29894-3, Hideaway Phase 3, ND La Quinta Partners, LLC STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-3, Hideaway Phase 3, ND La Quinta Partners, LLC. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 29894-3 is generally located west of Madison Street between Avenue 52 and Avenue 54 (Attachment 1). This residential development will consist of 55 lots on approximately 272 acres (Attachment 2). On November 21, 2000, the City Council approved Tentative Tract No. 29894. The developer has requested the City Council's conditional approval of the Final Map which will allow 30 days for completion of its processing. To date, the SIA (Attachment 3) has been executed by the developer but the associated securities have not yet been received. The Final Map is technically complete and is being routed for signatures. The developer expects that the associated securities and all signatures will be in place within the time allowed for its conditional approval. S-\ritvMnr\STAFF RFPORTR nN1 Y\9-�-04\r 7-dnr. As a result, City staff has prepared the attached Resolution which provides for conditional approval of the Final Map and SIA. The approval is contingent upon receipt within 30 days (March 4, 2004), of a technically correct Final Map, suitable for recording by the County Recorder, with all required signatures (except the City Clerk) and associated securities. Once these items are received, the City Clerk will affix the City Seal to the Final Map and offer the Final Map for recording by the County Recorder. If any of the required items are not received by City staff within the specified time frame, the Final Map will be considered disapproved and will be rescheduled for City Council consideration only after all required items have been received. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 Adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-3, Hideaway Phase 3, ND La Quinta Partners, LLC; or 2 Do not adopt a Resolution of the City Council granting conditional approval of a Final Map and Subdivision Improvement Agreement (SIA) for Tract Map No. 29894-3, Hideaway Phase 3, ND La Quinta Partners, LLC; or 3 Provide staff with alternative direction. Respectfully submitted, T' othy R. 1 o , P. E. ublic Works Director/ City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Tract Map 3. Subdivision Improvement Agreement 2 S-\CitvMnr\STAFF RFPnRTS ONI Y\7-3-04\C Trim RESOLUTION NO. 2004-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING CONDITIONAL FINAL MAP APPROVAL OF TRACT MAP NO. 29894-3, HIDEAWAY PHASE 3, ND LA QUINTA PARTNERS, LLC, AND AUTHORIZING A TIME EXTENSION FOR SATISFACTORY COMPLETION OF THE CONDITIONAL REQUIREMENTS TO VALIDATE THE APPROVAL WHEREAS, the City Council conducts only two regular meetings per month and the time interval between these meetings occasionally creates an undue hardship for business enterprises and individuals seeking approval of subdivision maps; and WHEREAS, the City Council, as a matter of policy, allows a subdivider to have City staff present the map for approval consideration when the requisite items necessary for final map approval are nearly, but not completely, finished thus yielding to the subdivider additional production time for preparation of those items; and WHEREAS, the subdivider has demonstrated to City staff and the City Council that it has made sufficient progress with items required for final map approval, and it is reasonable to expect the subdivider to satisfactorily complete the items, including City staff review time, within thirty (30) days without adversely impacting other ongoing work commitments of City staff; and WHEREAS, Section 66458(b) of the Subdivision Map Act grants the City Council broad authority to authorize time extensions regarding final map approval, or disapproval, upon receiving it for consideration; and WHEREAS, the City Council relies on professional City staff to review all required items for conformance with relevant requirements, and it is therefore appropriate for the City Council to approve the final map subject to review and confirmation of the required items by professional City staff, within a reasonable period of time as specified by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The final map for Tract Map 29894-3 is conditionally approved provided the subdivider submits all required items on or before March 4, 2004. 3 Resolution No. 2004- Tract Map No. 29894-3, Hideaway Phase 3 Adopted: February 3, 2004 Page 2 Section 2. The City Council's approval of the final map shall not be considered valid until the City Engineer has signed the map indicating that it conforms to the tentative tract map, the Subdivision Map Act and all ordinances of the City. Section 3. The City Engineer shall withhold his signature from the map until the subdivider has completed the following requirements to the City Engineer's satisfaction. A. Place appropriate securities in accordance with the approved Subdivision Improvement Agreement. B. Finalize the final Tract Map and obtain all necessary signatures. Section 4. The City Clerk shall withhold affixing the City Seal to the map title page, along with her attesting signature, until the City Engineer has signed the map. Section 5. The time extension for satisfying the requirements of the conditional approval for this final map shall expire when City offices close for regular business on March 4, 2004. If the subdivider has not satisfied the requirements in Section 3, herein, by the expiration deadline, the final map shall be considered disapproved. Disapproval does not deny any rights the subdivider may have under the Map Act to resubmit the final map for approval, or disapproval. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 3rd day of February, 2004, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: None ABSENT: None ABSTAIN: None DON ADOLPH, Mayor City of La Quinta, California 91 4 Resolution No. 2004- Tract Map No. 29894-3, Hideaway Phase 3 Adopted: February 3, 2004 Page 3 ATTEST: JUNE S. GREEK, CMC, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 9^ ATTACHMENT 1 1S 308NOW Q 0 3AV NOSIGVV4 w 3NV NOSIGO r Q LO Q c L N O 1S NOS�lff '— H Z 0 F- W '")w U cc �a s 93 ATTACHMENT 2 13 �9 3 o� s5 �13 W oM do dZ Ot 0) 6 QM=V1 W� C-4 O m 0 Z z 5 < 9 3, 11 =off d F OVC �p� W z^zO�Q m � N ` S W H d W = 0 tr��:tyt�l�t�t�t:ttl�t� p _�. Ri/ 7f Ig1pYq z wwr rwr ti W/o *sm adpill' fi %Ial' i 1911 R 111.41 PC Asr¢ 7% 94 CITY OF LA QUINTA ATTACHMENT 3 SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 29894-3 ON -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this day of , 20 by and between ND La Quinta Partners, LLC a Delaware Limited Liability Company hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is known as Tract No. 29894-3 (the "Tract") pursuant to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map Act"). B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the "Improvements"). C. The Improvements have not been installed and accepted at this time. D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the Improvements as provided in Section 66462 of the Subdivision Map Act. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish original improvement plans meeting the requirements of the City Engineer. 2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping, and other improvements required to be constructed or agreed to be constructed under this Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer. 3. Improvement Security. A. One class of security to be provided by Subdivider, hereinafter referred to as "performance security," shall assure the faithful performance of this Agreement including construction of the Improvements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory Improvements"), and payment of plan check and permit fees. A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, equipment and materials supplied to construct the Improvements. A third class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year following the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a condition of City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Monumentation or Participatory Improvements. However, the City may utilize Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act. As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby secured. 8 95 TAProject Development Division0evelopment Projects\Agreements\SIA\SIAs in Progress\Hideaway__29894-3kONSITE SIA.doc t of 7 B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or Tract map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an appraisal approved by City. 6) An instrument of credit from an agency of the state, federal or local government, when any agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the Improvements. 7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source (surety or financial institution) of security initially 96 submitted and for substitution of securities but shall not be required for submittal of warranty TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Hideaway_29894-3\ONSITE SIA.doc 2 of 7 security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in . Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty security shall not be required for Participatory Improvements. Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice by registered or certified mail, return receipt requested. G. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or approval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) The City Engineer may authorize partial reduction of performance security as work progresses, upon application by Subdivider. However, no such reduction shall be for an amount less than Ten Percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 3) Participatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) Warranty security not utilized during the warranty period shall be released one year after final acceptance or approval by the City Council of all Tract Improvements. However, if at the end of the one-year warranty period, there are one or more outstanding requests by City for n w performance of work or provision of materials under the terms of the warranty, wfirrranty 10 29894-3\ONSITE SIA.doc 3 of 7 T:\Projed Development Divlslon\Development ProjectsWgreements\SIA\SIAs in ProgressWideaway_ security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Reouired. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, at sec. of the Subdivision Map Act and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation n'pa not previously submitted. :7 11 29894-3\ONSITE_SIA.doc 4 of 7 T:\ProjeM Development Division\Development ProjedsWgreements\SIA\StAs in Progress\Hideaway_ Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with applicable City standards and specifications, and as provided herein, obligations required by the Conditions of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor done, or defective materials furnished, and shall repair or replace such defective work or materials. 13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security released. 14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall remain in effect. 15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives, executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and its officers, employees, agents, representatives, and assigns harmless from and against any losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way connected with Subdivider's performance herein under, including costs of suit and reasonable attorneys' fees. 16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any provision of the Conditions of Approval. In the event that any requirement or condition of this Agreement is inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 18. General Provisions. A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph. B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the n A heirs, executors, administrators, assigns, and successors of the parties hereto. J J 12 29894-3\ONSITE_SIA.doc 5 of 7 T:\Project Development Divlsion\pevelopment ProjeclsWgreements\SIA\SIAs in Progress\Hideaway_ B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 Thomas P. Genovese, City Manager Date ATTEST: City Clerk ND La Quinta Partners, LLC 81-100 Avenue 53 P.O. Box 980 La Quinta, CA 92253 (760) 391-5072 By: Title: By: Title: Reviewed and Approved: City Engineer Approved as to Form: City Attorney Date Date i/9/10L Date Date 100 TAProject Development DlvisionWevelopment Projects%greementsXSIA1SIAs In Progress%Hldeaway_29894-3WNSITE SIA.doc 13 6 of 7 Exhibit A ON -SITE SECURITY — TRACT MAP NO.29894-3 Improvements designated as Participatory have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Grading Drainage $ $ - 201,470 $ $ 201,470 Street Improvements $ 257,181 $ 257,181 Domestic Water $ 533,395 $ 533,395 Sanitary Sewer $ 190,734 $ 190,734 Dry Utilities $ 128,322 $ 128,322 Monumentation $ 23,000 $ - Totals $ 1,334,100 $ 1,311,101 Standard 10% Contingencey $ 131,100 $ 131,100 Total Construction Cost $ 1,465,200 $ 1,442,201 Professional Fees, Design 10% $ 146,500 $ 144,200 Professional Fees, Const 10% $ 146,500 $ 144,200 No Plans Contingency 25% $ 366,300 $ 360,600 Bond Amount $ 2,124,500 $ 2,091,201 101 14 29894-3\ONSITE SIA 2.doc 7 of 7 T:\Project Development Division\Development ProjeclsWgreements\SIA\SIAs in Progress\Hideaway_ CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 29894-3 OFF -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this day of by and between ND La Quinta Partners, LLC a Delaware Limited Liability Company hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is known as Tract No. 29894-3 (the 'Tract") pursuant to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map Act"). B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the "Improvements"). C. The Improvements have not been installed and accepted at this time. D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the Improvements as provided in Section 66462 of the Subdivision Map Act. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish original improvement plans meeting the requirements of the City Engineer. 2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping, and other improvements required to be constructed or agreed to be constructed under this Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer. 3. Improvement Security. A. One class of security to be provided by Subdivider, hereinafter referred to as "performance security, shall assure the faithful performance of this Agreement including construction of the Improvements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory Improvements"), and payment of plan check and permit fees. A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, equipment and materials supplied to construct the Improvements. A third class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year following the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a condition of City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Monumentation or Participatory Improvements. However, the City may utilize. Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act. As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby n secured. ,l 15 29894-3\OFFSITE_SIA.doc 1 of 7 T:\Project Development Division\Development ProjectsWm greeents\SIA1SIAs in ProgressUiideavuay_ B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or Tract map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an appraisal approved by City. 6) An instrument of credit from an agency of the state, federal or local government, when any agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the Improvements. 7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for submittal of warranty 103 16 TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Hideaway_29894.3\OFFSITE SIA.doc 2of7 security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty security shall not be required for Participatory Improvements. Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice by registered or certified mail, return receipt requested. G. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or approval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) The City Engineer may authorize partial reduction of performance security as work progresses, upon application by Subdivider. However, no such reduction shall be for an amount less than Ten Percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 3) Participatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) Warranty security not utilized during the warranty period shall be released one year after final acceptance or approval by the City Council of all Tract Improvements. However, if at the end A of the one-year warranty period, there are one or more outstanding requests by City for O4 performance of work or provision of materials under the terms of the warranty, 1 rranty 3of7 TAProject Development Division\Development Prom JectMAgreeents\SIA\SIAs in ProgressUiideaway_29894-3\OFFSITE SIA.doc security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance. to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation 105 not previously submitted. 18 TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Hideaway_29894-3\OFFSITE SIA.doc 4 of 7 Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with applicable City standards and specifications, and as provided herein, obligations required by the Conditions of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor done, or defective materials furnished, and shall repair or replace such defective work or materials. 13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security released. 14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall remain in effect. 15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives, executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and its officers, employees, agents, representatives, and assigns harmless from and against any losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way connected with Subdivider's performance herein under, including costs of suit and reasonable attorneys' fees. 16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any provision of the Conditions of Approval. In the event that any requirement or condition of this Agreement is inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 18. General Provisions. A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph. B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the n heirs, executors, administrators, assigns, and successors of the parties hereto. 10C 19 29894-3\OFFSITE_SIA.doc 5 of 7 T:\Project Development Oivision\Development ProjectsWgreements\SIA\SIAs in Progress\Hideaway_ C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of. California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY; City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 Thomas P. Genovese, City Manager ATTEST: City Clerk ND La Quinta Partners, LLC 81-100 Avenue 53 P.O. Box 980 La Quinta, CA 9225?( ,(r W) 391-5072 By: Title: By: Title: Reviewed and Approved: City Engineer Date Approved as to Form: City Attorney Date Date f9-, Date Date 107 20 T:Troject Development Dlvislon\Development Projectmgreements\SIA SIM in ProgressWideeway_29894-3\OFFSITE SIA.doc 6of7 Exhibit A OFF SITE SECURITY — TRACT MAP NO.29894-3 Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Half Madison from Ave 52 to Ave 54 Street Improvements $ 484,438 $ 484,438 Sidewalk (6ft) $ 130,412 $ 130,412 Perimeter Landscaping $ 97,550 $ 97,550 Drainage Improvements $ 27,380 $ 27,380 Totals $ 739,780 $ 739,780 Standard 10% Contingencey $ 73,980 $ 73,980 Total Construction Cost $ 813,760 $ 813,760 Professional Fees, Design 10% $ 81,380 $ 81,380 Professional Fees, Const 10% $ 81,380 $ 81,380 No Plans Contingency 25% $ 203,440 $ 203,440 Bond Amount $ 1,179,960 $ 1,179,960 108 21 29894-3\OFFSITE_SIA.doc 7 of 7 T:\Project Development Division\Development ProjectsWgreements\SIA\SIAs in Progress\Hideaway_ � s OFhf OF �� COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Authorization for Overnight Travel for the Public Works Director/City Engineer and the Traffic & Development Senior Engineer to Attend the 2004 Public Works Officers Institute to be Held in' Santa Barbara, California, March 3 - 5, 2004 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize overnight travel for the Public Works Director/City Engineer and the Traffic & Development Senior Engineer to attend the 2004 Public Works Officers 'Institute to be held in Santa Barbara, California, March 3 - 5, 2004 FISCAL IM PUCATIONS: The Fiscal Year 2003/2004 Budget has allocated funds for travel, training and meetings for staff. Attendance at this conference is estimated to be $2,074 based on the following costs: • Registration ($425 x 2) = $850 • Hotel ($150/night for 2 nights x 2) _ $600 • Meals (3 days @ $75/day x 2) = $450 • Travel (464 miles roundtrip) x 0 375/mile x 1 = 174 Total $2,074 CHARTER CITY IMPLICATIONS: None. S:\CityMgr\STAFF REPORTS ONLY\2-3-04\C 8.doc n BACKGROUND AND OVERVIEW: The League of California Cities Public Works Officers Institute gives public works professionals from around the state the opportunity to discuss challenges and opportunities in the field of public works management. The institute will be held March 3 - 5, 2004, in Santa Barbara, California. If approved, the Public Works Director/City Engineer and Traffic & Development Senior Engineer will attend this conference. The program description is included as Attachment 1. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize overnight travel for the Public Works Director/City Engineer and the Traffic & Development Senior Engineer to attend the 2004 Public Works Officers Institute to be held in Santa Barbara, California, March 3 - 5, 2004; or 2. Do not authorize overnight travel for the Public Works Director/City Engineer and the Traffic & Development Senior Engineer to attend the 2004 Public Works Officers Institute to be held in Santa Barbara, California, March 3 - 5, 2004; or 3. Provide staff with alternative direction. Respectfully submitted, �Z imothy R onao6n, P.E. r s Public WoDirector/City Engineer Approved for submission by: ( u� Thomas P. Genovese, City Manager Attachments: 1. Program Description T:\PWDEPT\COUNCIL\2004\02-03-04\Overnight Travel 001.doc 110 2 LEAGUE OF CITIES 1400 K STREET SAQWAENTO, CA 95814 916 658.8200 2004 PUBLIC WORKS OFFICERS INSTITUTE Wednesday, March 3 - Friday, March S, 2004 Fess Parker's DoubleTree, Santa Barbara You Will Want To Attend H You Are A... ➢ Public Works Director ➢ Assistant Public Works Director ➢ City Engineer ➢ Assistant City Engineer ➢ County Engineer ➢ Assistant County Engineer You Will Benefit From This Program By... ➢ Delving into current transportation issues ➢ Learning the ins and outs of unethical behavior ➢ Getting up to date information on 2004 ballot measures ➢ Lem how to avoid the $4 million stop sign ➢ Working through the regulatory process ➢ Understanding SAFETEA ➢ Discovering How to Work and Play to Win ... and much moreH This Institute offers a unique opportunity to discuss hot topics such as environmental and transportation fimding issues with CalTrans, CTC and FHWA.. Don't miss out on this unique opportunity — REGISTER NOW! This Institute will be held in conjunction with the annual meeting of the County Engineers Association of California, and offers a great opportunity to network with your county engineer. GOLFERS! See attached flyer for information and sign up instructions for the Golf Tournament, Tuesday, March 2, 2004 at the Glen Annie Golf Club Details to follow. ACT NOW — SAVE TIME — GET A BONUS! Three ways for Conference Registration: -Register online at www.cacities.o events Fill out and Fax us the Registration Form -Mail us the Registration Form ill 3 GENERAL INFORMATION Registration Special Accommodations Guest/Spouses Airlines Hotel Directions coming North Directions coming South The registration fee includes program materials, two continental breakfasts, two lunches, and two receptions. Registrations postmarked by Tuesday, February 10, 2004, will receive a $25 discount coupon to be used at the CityBooks bookstore. CityBooks can help increase your leadership skills and professional knowledge in vital areas. Don't miss this great way to expand and share your learning wit] colleagues at city hall! Full payment must accompany the registration form Check, money order, Vis or MasterCard are accepted. The League is unable to accept purchase orders, American Express or Discover cards. If paying by credit card please fax your registration form to (916) 658-8220 or register online at www.cacities.orir%vents. If you have questions, please contact Conference Registration at (916) 658-8291. If you require special accommodations related to facility access, communication and/or die - please contact Conference Registration at (916) 658-8291. There is no registration fee to attend the 2004 Public Works Officers Institute sessions fo guest/spouses who are not city or other public officials or vendors to cities. Guest/spouses of registere- attendees may purchase meal or special event tickets for an additional fee at the registration desk. Fo information on local events within the city, please contact the Fess Parker's DoubleTree concierge des: or visit www.seesantabarbara.com. We invite you to visit www.eaeities.ore/travel for the new Enhanced Local Government Anfar Program- Fess Parker's DoubleTree 633 East Cabrillo Boulevard Santa Barbara, CA 93103 (800)879-2929 $150.00 single/double (plus 12% room tax) www.fpdtr.com FAX (JCE41 1. Take 101 North to Santa Barbara. 2. Exit the freeway on Cabrillo Blvd/Beach Area (this is a left exit!). 3. At the stop sign at the bottom of the ofliamp, turn left onto Cabrillo Blvd. 4. _ Travel on Cabrillo for approximately 1.5 miles. 5. Turn right onto Calle Puerto Vallarta. 6. The hotel entrance is the first driveway on the left. Come in the driveway, and head left, following the signs to the hotel lobby. 1. Take 101 southbound to Santa Barbara. 2. Exit at Milpas Street 3. Turn right onto Milpas Street 4. After crossing the railroad tracks, turn right onto Cane Puerto Vallanta. 5. The hotel entrance is halfway down the block on the right. Come in the driveway, and head left, follow the signs to the hotel lobby. Go to an interactive nun showing the location in Santa Barbara. Santa Barbara Airport Visit the Airports Website 4 1 ON Program Matrix Program Wednesday slay Friday. Breakfast Informal Networking 730-8:45 A.M. e - Small Cities / Rural Communities Informal RegronailBreakonts Networking ' General Networking • Women In Public Works ietaX'Se4�iott General Session Re�u open Transxi Updates ,. Work And Play To win 9.00 A.M. - 5:00 P,M. C'al fornna..-=CTC, OAT,TIOiI�1S, Guest Speaker: 1*IAA Vince Lombardi, Jr. MORNING CII flr Concluding General SESSIONS Opening General Session' )�ina�drFot T—on f Session Ballot Initiatives And Local .f Council/Staff Relations And Government !rQ n C64 Dealing With Unethical Transpon Behavior Lunch General Luncheon Session Uetieratllnnchean Noon —1:30 p.m. 4.aughing With Infravcfiue pol�tics'rc Safy :The Adjourn Guest Speaker: Steve Bernard, - irgltier Srdd '� Comedian and Ventriloquist AFTERNOON Goncurttessiwn� SESSIONSygulatc►rY ■ Wad General Session r Local Streets And Roads Maintenance low Funding,- A Case Study In '�nWori luhe Assessment Of Needs, Revenues And ,• Funding Shortfall Relattons (1VIedrBc, ieb 10ft ) s �;iesstQn �onc�rr�nit" Scssion� Concurrent Sessionsnin local Jbul ■ Contracting For Service Performance Standards And Level Of Service Fighting For The Public Right Of Way Z Receptions Welcoming Remotion Nal° Reception s 113 2004 Public Works Officers Institute Wednesday, March 3 - Friday, March 5, 2004 Fess Parker's DoubleTree, Santa Barbara We invite you to register on-line by going to www.cacities.ora/events OR fill out this form completely and return it to the League of California Cities Please enter your name and title, as they should appear on your name badge and registration. Please indicate guest/spouse's name if atbcading (if guest/spouse is not a public or city official). Please complete one form per registrant Confirmations mtions will be mailed to the address designated below. Name Title Addrae where esnGrmfaiee Is M be Maud City Zip Code Teh:phom Fax Your Email address will be used to confirm your registration. The League -can also send you educational and conference material in the future. Email for rep,is mm Spmw IG*eR Name If you require special accommodations related to facility access, communication and/or diet, please contact our Conference Registrar at (916) 658-8291. Payment Information: Please note, the League is unable to accept purchase orders, American Express or Discover cards at this time. If paying by credit card please fax your registration form to (916) 658- 8220. If paying by check or money order, please mail to: League of California Cities 1400 K Street Sacramento, California 95814 Full Conference City Officials @ $425.00 All others @ $475.00 Total $ One Day Only Please indicate which day you will be attending: 17 Wednesday O Thursday Ll Friday City Officials @ $275.00 An O&= @ $325.00 Total $ Credit Card Payment Only 11 MasterCard UPersonal Check Ovisa QCity Check NOTE: All cancellations mast be submitted in writing and are subject to a M processing fee. No refunds will be given for cancellation MPWM received after Wednesday, February 25, '2004. Substiftitions may be made, even on site. Registration Forms Must Be Postmarked or Faxed By Tuesday, February 10, 2004 After this date, please register on site. 6 114 RE`gE'RAThCCS'£CJR11 2004 Public Works Officers Institute Wednesday, March 3 - Friday, March S, 2004 Fess Parker's DoubleTree, Santa Barbara Please DO NOT return this form to the League of Califomia Cities We invite you to reserve your room by going to our website Deposit Information: The Fess Parker's DoubleTree requires a deposit in the amount of tht www.caeities.orFJevents first night room rate. Housing forms received without a valid credit OR fill out this form completely and mail or fax it to the card or check deposit will be returned and will not be processed. (Ni Fess Parker's DoubleTree at (805) 962-8198. cash deposits accepted.) Please make copies of this form if additional rooms are to be reserved. If faxing this form, please do not mail a duplicate copy. Phone reservations will not be accepted. Name Title Mailing Address City zip code Telephone Fax Email Arrival Date and Tina O AM ❑ PM Departune Date and Time' DAM O PM Room Preferences: ❑ I will share a room with: ❑ Non smoking room ❑ Handicapped access ❑ Single -King ❑ Double - 1 Bed ❑ Double - 2 Beds There are no guarantees on room type, although the hotel will do everything possible to accommodate your request. Room assignments are based on a first -come, first -served basis Please make checks payable to: Fess Parker's DoubleTree 633 East Cabrillo Boulevard Santa Barbara, California 93103 Hotel Room Rate: $150 singleldouble Deposits by credit card, require the following information: Cardholder Name Credit cad Numbs E*mfiam Date Antborimd Sigmaene Confirmation: If you do not receive a confirmation via e-mail, fax or mail within 14 days after any transaction, please contact the Fess Parker's DoubleTree at (800) 879-2929. Cancellation: If you cancel or don't keep your reservation after Friday, February 27, 2004, you will be charged for one night. FAX completed reservation form to Fess Parker's DoubleTree at (805) 962-8198 Reservations Must Be Received no Later Than 3:00 p.m. Monday, February 2, 2004 115 VA / T 4 OF r COUNCIURDA MEETING DATE: February 3, 2004 AGENDA CATEGORY: ITEMTITLE: Approval of Overnight Travel for a Building BUSINESS SESSION: _r1 Inspector II to Attend the California Building Officials CONSENT CALENDAR: (CALBO), Annual Business Meeting to be Held in Long Beach, California, March 9-12, 2004 STUDY SESSION: _ PUBLIC HEARING: RECOMMENDATION: Approve the overnight travel for a Building Inspector II to attend the CALBO annual business meeting (Attachment 1) in Long Beach, California, March 9-12, 2004. FISCAL IMPLICATIONS: The costs associated with the meeting attendance will be funded through the Building and Safety Administration, travel, training and meetings account number 101-5001-424.51-01. The estimated expenditures are as follows: Registration $330 Hotel $275 Travel $100 Meals $50 TOTAL $755 CHARTER CITY IMPLICATIONS:. None. BACKGROUND AND OVERVIEW: Inspection staff is required to obtain continuing education credits to maintain their certification. Attendance at this meeting will help to fulfill those requirements. The City attendee (Daniel Crawford), has been elected to serve as the President of 116 the local International Code Council chapter. Attendance at the meeting will assist him in that role as well. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the overnight travel for a Building Inspector II to attend the CALBO annual business meeting in Long Beach, California, March 9-12, 2004; or 2. Do not -approve the overnight travel for a Building Inspector II to attend the CALBO annual business meeting in Long Beach, California, March 9-12, 2004; or 3. Provide staff with alternative direction. Respectfully submitted, Tom Hartung, Directo of Building and Safety Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. Conference Overview 2 117 TUESDAY, MARCH 9, 2004 10:30 a.m. - 6:00 p.m. Golf Tournament at El Dorado Golf Course (optional) 12:00 p.m. - 6:00 p.m. Exhibit Installation - Promenade 12:00 p.m. - 6:00 p.m. Registration - Promenade 4:00 p.m. - 6:00 p.m. Committee Meetings - Coral, Mediterranean I &II 7:30 p.m. LA Kings vs. Phoenix Coyotes Hockey Game (optional) WEDNESDAY, MARCH 10, 2004 7:00 a.m. - 4:00 p.m. Registration - Promenade 7:00 a.m. - 4:00 p.m. Exhibitor Program - Promenade 8:30 a.m. - 4:45 p.m. Professional Development Day Program - International Ballroom 1-III &Pacific 10:00 a.m. -11:00 a.m. Locations Committee Meeting - Coral 10:00 a.m. - 3:00 p.m. Nominations Committee Interviews - Mediterranean I 12:00 p.m. -1:15 p.m. Luncheon for Attendees and Ex- hibitors - International Ballroom III - V 3:00 p.m. - 5:00 p.m. Resolutions Committee Meeting - Mediterranean 11 7:00 p.m. -10:00 p.m. President's Reception & Dinner - International Ballroom I - III THURSDAY, MARCH 11, 2004 7:00 a.m. Fun Run - Long Beach Marina (optional) 7:00 a.m. - 4:00 p.m. Registration - Promenade 7:00 a.m. -12:00 p.m. Exhibitor Program - Promenade 8:30 a.m. - 8:45 a.m. Opening Ceremonies - International Ballroom I - III 8:45 a.m. - 4:30 p.m. General Session - International Ballroom 1- III 4:30 p.m. - 4:45 p.m. Nominations Committee Report - International Ballroom I - III 12:00 p.m. -1:15 p.m. Awards Luncheon - International Ballroom III - V 7:00 p.m. CBS "Beers & Cheers" Night & CTI "Code Bowl" Hospitality Rooms Open FRIDAY, MARCH 12, 2004 7:00 a.m. -12:00 p.m. Registration - Promenade 7:00 a.m. - 8:00 a.m. Past Presidents Breakfast - Coral 8:30 a.m. - 10:30 a.m. Business Session - International Ballroom 1- III CTI Report, Administrator's Report, Strategic Plan Report, Resolutions and Election of Officers r 3 1 ATTACHMENT 1 a 10:45 a.m. - 4:45 p.m. Genera 1 Session - International Ballroom I - III 12:00 p.m. -1:15 p.m. Past Presidents Luncheon - International Ballroom III - V 6:00 p.m. - 7:00 p.m. 42nd Anniversary Reception - Promenade 7:00 p.m. -10:00 p.m. Banquet and Installation of Officers - International Ballroom III - V SATURDAY, MARCH 13, 2004 9:00 a.m. -12:00 p.m. Board of Directors Meeting - Boardroom " TUESDAY, MARCH 9, 2004 10:30 a.m. - 6:00 p.m. Golf Tournament at El Dorado Golf Course (optional) 7:30 p.m. LA Kings vs. Phoenix Coyotes Hockey Game (optional) WEDNESDAY, MARCH 10, 2004 9:00 a.m. Welcome Continental Breakfast - Mediterranean II Long Beach Historical Landmark Tour 7:00 p.m. - 10:00 p.m. President's Reception & Dinner - International Ballroom I - III THURSDAY, MARCH 11, 2004 7:00 a.m. Fun Run - Long Beach Marina (optional) 9:00 a.m. Day at Catalina Island 7:00 p.m. Hospitality Rooms Open FRIDAY, MARCH 12, 2004 11:30 a.m. -1:00 p.m. Lunch at Lucille's Smoke House Afternoon open to enjoy beautiful Long Beach! 6:00 p.m. - 7:00 p.m. 42nd Anniversary Reception - Promenade 7:00 p.m. - 10:00 p.m. Banquet and Installation of Officers - International Ballroom III - V L 3 COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Approval of Funding Request From the Greater Coachella Valley Soap Box Derby RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: (� CONSENT CALENDAR: O STUDY SESSION: PUBLIC HEARING: Approve the funding request from the Greater Coachella Valley Soap Box Derby in the amount of $1,350 for Franchise Fees from Account #101-3001-451.80-24 and up to $2,800 for in -kind service costs from Account #101-7003-431.56.02. FISCAL IMPLICATIONS: The Fiscal Year 2002-03 Budget contains two line items designated for the Greater Coachella Valley Soap Box Derby ("GCVSBD"). The Community Services Department Account #101-3001-451.80-24 contains funds for the Franchise Fees and the Public Works Department Account #101-7003-431.56.02 contains funds for operating materials. The operating materials in the past have included the rental of barricades, labor for set up and break down of the barricades, signs and traffic control, encroachment permit, street closure notice preparation and distribution. There are sufficient funds in both the Community Services Department and Public Works Department budgets to accommodate the costs requested by the GCVSBD. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The Greater Coachella Valley Soap Box Derby (GCVSBD) is requesting $1,350 for Franchise Fees for the one day event that will be held on Saturday, April 26, 2004, as provided in Attachment 1. Along with the Franchise Fees, the GCVSBD is requesting 119 funding for the in -kind services that would be performed, as in the past, by the City of La Quinta, such as street closures, traffic control devices, and public noticing of the event. The amount awarded to the GCVSBD for the 2003 event included $1,300 for Franchise Fees and $1,900 for in -kind services for a total City contribution of $3,200. The amount granted to the GCVSBD in 2002 was $1,300 for Franchise Fees and $2,200 for in -kind service costs. It is anticipated that the in -kind costs for this year's event will be approximately $2,250. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the funding request from the Greater Coachella Valley Soap Box Derby in the amount of $1,350 for Franchise Fees from Account #101-3001-451.80- 24 and up to $2,800 from Account #101-7003-431 .56.02 for in -kind service costs; or 2. Approve the funding request from the Greater Coachella Valley Soap Box Derby in a different amount for Franchise Fees from Account #101-3001-451.80-24 and a different amount for in -kind service costs from Account # 101-7003- 431.56.02; or 3. Do not approve the funding request by the Greater Coachella Valley Soap Box Derby; or 4. Provide staff with alternative direction. Re�pectfuljy submitted, Dodie Horvitz,'Ipommunity Services Director Approved for submission br: Thomas P. Genovese, City Manager Attachment: 1. Letter from Greater Coachella Valley Soap Box Derby 120 2 Don Berry Memorial ATTACHMENT1 Greater Coachella Valley Soap Box Derby ,, The Honorable President A Program of the Boys & Girls Club of Coachella Valley Gerald R. Ford Honorary Chairman January 22 2004 Ms. Dodie Horvitz City of La Quinta Calle Tampico La Quinta, CA 92253 Re: Funding Request for the loth Annual 2004 Don Berry Memorial Greater Coachella Valley Soap Box Derby Dear Dodie: This letter is a request for the City of La Quinta to consider funding for the 2004 Don Berry Memorial Greater Coachella Valley Soap Box Derby. The amount of funding would include the Franchise Fee for two Divisions; Stock & Super Stock ($1,350.00 the same as last year), costs associated with the Street closure (noticing, cones, barricades & personnel to set up and break down of street closure), street sweeping the morning of the race (5AM) and any other staff time you deem required. We have scheduled the race for Saturday, March 27 2004, per our conversation. Former President Gerald Ford has agreed to be our Honorary Chairman again this year. As in previous years, we will call on the business community to donate other services, including but not limited to; Trash receptacles, large bin, porta potties (Waste Management), printing, postage, water, t-shirts, trophies, graphic artist, travel arrangements for winners and their families, etc. These expenses are underwritten by the 222 Club of Palm Springs, volunteers and corporate sponsors. The City of La Quinta's support in the past for this great family event has been appreciated by our Committee, volunteers, sponsors and most of all the children and parents of the participants. Thanking you in advance for your consideration. If you have any questions, please feel free to give me a call at 564-3761 or my cell @ 805-1603. f rely, Moran, Race Director cc: Mayor & City Councilmembers 42-600 Cook Street, Suite 120, Palm Desert, CA 92211 760.564.3761 Fax: 760.564.8350 E-mail: lucia@uia.net 1 ^ 1 Twit 4 4 QuAkrai COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of an Ordinance Amending Chapter 3, Sections 3.28.180 (G) and 3.28.370 of the La Quinta Charter and Municipal Code Relating to Business License Renewal Date AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: A). Motion to take up Ordinance No. by title and number only and waive further reading. B). Motion to introduce Ordinance No. on first reading. FISCAL IMPLICATIONS: The proposed amendment will result in reduced staff time in processing business license renewals by changing the renewal dates from differing days within the month to the last day of each month. In the event that the last day of the month is a weekend or a holiday, then the business license holder' s renewal due date will be the next business day. For the first year of the licenses, the proposed change may result in license holders obtaining some extra days in the first term of their licenses. However, any loss of revenue relating to those days would be offset by the projected reduction in staff time. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff has evaluated the processing time for business licenses and believes that changing our renewal date policy to the end of each month will result in reduced staff time and better customer awareness of their business license expiration date. As an example of the proposed change, if a license was issued on January 26, 2004, it would expire under the current policy on January 26, 2005. Under the proposed 122 policy, the license would be issued on January 26, 2004 and expire on January 31, 2005. After January 31, 2005, the renewed license would be in effect from February 1, 2005 to January 31, 2006. The following are the Sections of Chapter 3 of the Municipal Code that would be changed under this proposal, with the strikeout text removed and the bold text inserted: Chapter 3, Section 3.28.180 (G) - "Renewal date" means the date listed for renewal date.ending the twelve month pefied aftef the lieense issue on the permit. Chapter 3, Section 3.28.370 — Unless otherwise specifically provided, all annual license fees shall be due and payable on or before the first business day e4 the renewal date of eeeh yeef. The proposed amendment has been reviewed by the City Attorney. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. A). Motion to take up Ordinance No. by title and number only and waive further reading. B). Motion to introduce Ordinance No. on first reading; or 2. Do not take up Ordinance No. by title and number only and waive further reading and do not introduce Ordinance No. on first reading; or 3. Provide staff with alternative direction. Respectfully submitted, M. Falconer', Finance Director Approved for submission by: 124' 3 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 3, SECTIONS 3.28.180 (G) AND 3.28.370 OF THE LA QUINTA CHARTER AND MUNICIPAL CODE RELATING TO BUSINESS LICENSE RENEWAL DATES. THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: WHEREAS, the City Council of the City of La Quinta has duly considered the recommendations of the Finance Department and City Treasurer; and, WHEREAS, it is the desire of the City Council of the City of La Quinta to amend Chapter 3 of the La Quinta Charter and Municipal Code relating to Business License renewal dates; and WHEREAS, the changes will result in better customer awareness of the dates of expiration of business licenses and will result in reduced expenditure of staff time to process business license renewals, NOW, THEREFORE BE IT RESOLVED by the City Council of the City of La Quinta, California that it does ordain as follows: SECTION 1. Chapter 3, Section 3.28.180 (G) is hereby repealed and replaced to read as follows — "Renewal Date" means the date listed for renewal on the permit. SECTION 2. Chapter 3, Section 3.28.370 is hereby repealed and replaced to read as follows — Unless otherwise specifically provided, all annual license fees shall be due and payable on or before the renewal date. SECTION 3. EFFECTIVE DATE, This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 4. POSTING. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be posted in at least three public places designated by Resolution of the City Council, and shall cause this Ordinance and its certification, together with proof of posting, to be entered into the Book of Ordinances of this City. 125 4 Ordinance No. Adopted: Page PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this third day of _February, 2004, by the following vote: AYES: Council Members NOES: None ABSENT: None ABSTAIN: None DON ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, CMC, City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 126 5 Ordinance No. Adopted: Page STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss. CITY OF LA QUINTA ) I, JUNE S. GREEK, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. which was introduced at a regular meeting on the day of and was adopted at a regular meeting held on the day of not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in a Resolution of the City Council. JUNE S. GREEK, CMC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, JUNE S. GREEK, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on , pursuant to Council Resolution. JUNE S. GREEK, City Clerk City of La Quinta, California 127 6 COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of Funding Request By the La Quinta Arts Foundation RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: A - CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The Fiscal Year 2003-04 budget does not contain a line item designated for the La Quinta Arts Foundation. Dependent upon City Council action, the City Council could authorize funding the La Quinta Arts Foundation's request from the General Fund Reserve. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the July 1, 2003 City Council meeting, the La Quinta Arts Foundation (Foundation) requested consideration for funding under written correspondence. After some discussion, the ,City Council requested the Foundation provide additional information before the Council would consider a funding request (Attachment 1). The additional information requested by the City Council from the Foundation included: A complete, up-to-date, comprehensive status report of the Foundation's current and future plans; a complete, independent, audited financial statement, and binding assurance from the Foundation that the 2004 Plein Air and Arts Festival will be held in the City of La Quinta. 128 At the January 20, 2004 City Council meeting, the City Council received the information requested from the Foundation, as written correspondence (Attachment 2). Staff was directed to add this item to the February 3, 2004 City Council agenda for consideration. Per the City Council's request at the July 1, 2003 City Council meeting, the Foundation has provided its annual review, which outlines the accomplishments of the Foundation during Fiscal Year 2002-03. However, plans for Fiscal Year 2003- 04 were not included, nor were the Foundation's plans for future programs and events. A completed Independent Auditor's Report and financial statement is provided in Attachment 2 for Fiscal Year 2002-03 as requested by the City Council. The Foundation's annual Plein Air art exhibit and public sale was held on January 25, 2004 at the Renaissance Esmeralda Resort and Spa in Indian Wells. The Foundation's annual Arts Festival is planned for March 18-21 at the La Quinta site. The Foundation has submitted an application for a Temporary Use Permit with the Community Development Department. Upon discussion with Ms. Christi Salamone, Executive Director of the La Quinta Arts Foundation, advertising for the 2004 La Quinta Arts Festival is underway. Should the City Council approve the Foundation's funding request, the City would be listed as a sponsor of the event in the following publications: direct mail; rack card; on -site signage; Festival program; print ads in the Desert Sun, and the Desert Post Weekly. The City would also be mentioned as a sponsor in radio and television advertisements. Attachment 3 provides a list of prior years funding to the Foundation by the City of La Quinta. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the funding request from the La Quinta Arts Foundation in an amount to be determined, taken from the General Fund Reserve; or 2. Do not approve the funding request from the La Quinta Arts Foundation; or 3. Provide staff with alternative direction. 1?9 fully itted, Vsub Ir orvitz, C rn nity Services Director Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Minutes of the July 1, 2003 City Council Meeting 2. Funding Request and Additional Information from the La Quinta Arts Foundation 3. Prior Years Funding to the Foundation City Council Minutes 2 July 1, 2( ATTACHMENT 1 sculpture and palm trees near the artwork that will be more closely related to the City logo and still look like a rainbow. Mr. Sharp thanked her for the explanation, and stated he wasn't aware of the circumstances. Mayor Adolph welcomed the new Chief Executive Officer of the La Quinta Chamber of Commerce, Diane Glanz. CONFIRMATION OF AGENDA - Confirmed ANNOUNCEMENTS - None PRESENTATIONS Following a presentation of the video, "Cloudy Skies Over California Cities," David Willmon, Grassroots Coordinator for League of California Cities -Riverside Division, spoke to the issue of how the State budget crisis is expected to affect California cities. A brief discussion ensued wherein Council voiced their concerns about the potential impacts of the State budget on the City of La auinta. Patricia Melvin, President and CEO of Coachella Valley Economic Partnership (CVEP), gave a brief update on the organization's efforts to draw new businesses to the Valley. WRITTEN CORRESPONDENCE 1. LETTER FROM THE LA aUINTA ARTS FOUNDATION. Council Member Sniff stated he feels the Council suffers a significant lack of information regarding the status of the Arts Foundation. He recommended staff be directed to secure the following three items from the Arts Foundation before any discussion is considered on their request for funding: 1) a complete, up-to-date, and comprehensive status report; 2) a complete independent financial audit; and 3) binding assurance that the Arts Foundation events (Plein Air and March 2004 Arts Festival) will be held in La auinta. Council Member Perkins noted two of the Council Members have tried to get a comprehensive financial statement from the Arts Foundation over the last several years and have failed to approve the budget a few times due to the lack of information on that item. He noted rumors about the Arts Foundation have City Council Minutes 3 July 1, 2003 circulated without the City receiving any information, and now an after -the -fact —" request for funding is received without any justification. He feels the Arts Foundation has let the City down, and is not inclined to be a part of anything for them at this time. He is not in favor of granting a request for funds until the City receives the information as suggested by Council Member Sniff. Council Member Henderson commented on the long-standing relationship between the City and the Arts Foundation, and the City's support of the arts. She noted a lot of people have asked what is happening with the Arts Foundation, and have varying opinions about it. She concurred that she and Council Member Perkins previously requested an audited -financial return for any request for funding over $50,000. She now believes the policy for grants and contract for services should be revisited to include that requirement. She feels a binding agreement for the two art events may be difficult for the Arts Foundation to produce but it should be made clear that any funding from the City is for events in the City. Council Member Osborne concurred with the recommendation but would also like to know how the Arts Foundation plans to bring the property up to City Code. Council Member Sniff noted that would be part of the status report. Mayor Adolph agreed the events have to be in the City but noted the Arts Foundation has a difficult time holding the Plain Air event at the La Quinta Resort & Hotel. He noted the SilverRock Ranch will be a good place to hold the event once ,it is built but until then the City may need to be a little looser about having the Plein Air showing in La Quinta. Council Member Sniff stated he is not in favor of giving them $25,000 for an event that is held outside the City. Council Member Henderson suggested the possibility of using the Civic Center Campus or not funding that one event. Council concurred to refer this matter to staff per Council Member Sniff's recommendation. APPROVAL OF MINUTES MOTION - It was moved by Council Members Henderson/Sniff to approve the City Council Special Meeting Minutes of June 13, 2003 as submitted. Motion carried unanimously. MOTION - It was moved by Council Members Sniff/Henderson to approve the City Council Minutes of June 17, 2003 as submitted. Motion carried unanimously. 132 . 5 WRITTEN CORRESPONDENCE ATTACHMENT 2 January 6, 2004 Honorable Mayor and City Council Members City of La Quinta AWL P. O. Box 1504 L A Q U I n TA La Quinta, CA 92253 Dear Mr. Mayor and Council Members, _ FOUNDATION In a letter dated July 7, 2003 from City Manager Tom Genovese to La Quinta Arts Foundation, by direction of the City Council at the July 1, 2003 meeting, a list of requirements were requested by City Council to further consider La Quinta Arts Foundation's request for renewal of the annual marketing contract. They were: • A complete, up-to-date comprehensive status report of the Foundation's current and future plans ■ A complete independent audited financial statement of the Art Foundation ■ A binding assurance from the Foundation that the 2004 Plein Air and Arts Festival well be held in the City of La Quinta As of the date of this letter, representatives of La Quinta Arts Foundation have met individually with all Council members (excepting Perkins who was not available) twice over the months since receipt of the letter where we provided detailed information on: ■ Status of the LQAF's operating condition • Information on expansion of mission programs ■ FY 02/03 Audited Financial Statement ■ Status of the disposition of the Washington Street property ■ Details of activities and promotion of those activities planned for 2004, including the 6"' Annual Desert Plein Air and 22"d Annual La Quinta Arts Festival ■ Status of the Permit Application to hold La Quinta Arts Festival 2004 on the Washington Street property. ■ Information on the Board of Directors and their future plans and direction for the foundation Much of the information relayed to Council Members can be found in the published LQAF documents enclosed, LQAF Annual Review 2003 and Independent Financial Audit ending June .30, 2003. By way of this letter we ask Council's further consideration of the request for renewal of the marketing services contract for La Quinta Arts Festival in the amount of $75,000 pursuant to the original proposal. As stated in the beautiful 2003-04 calendar distributed by the City prominently featuring La Quinta Arts Festival and Foundation in March, "The City of La Quinta is nationally known for its involvement and support of the arts." We hope the City appreciates the credibility and value that La Quinta Arts Foundation/Festival contributes to La Quinta's national recognition and prominence, and will continue our long-standing partnership. Sincerely, Christi Salamone Executive Director Cc: Tom Genovese, La Quinta City Manager ' 6 LQAF Board of Directors 133 POST OFFICE BOX 777 ♦ LA QUINTA, CA 92253 ♦ 760 564 1244 ♦ FAX 760 564 6884 A• ig LA QU t PITA AART--S FOUNDATION LA QUINTA ARTS FOUNDATION Avuvk,v-PL TRevbew 2002/03 J UL, 1, 2002 - j uvt 30, 2003 134 Letter frown Executive D`brector Dear Friends and Supporters of La Quinta Arts Foundation: Certainly the 2002103 season will long be remembered as one of dramatic but necessary change within the LQAF organization. In correspondence sent out in January, April, and June to the membership, volunteers, and interested parties, we attempted to keep everyone abreast of the rapidly evolving situation and impact to the Foundation of the issues related to the building project, the disappointing 2002 La Quinta Arts Festival (wracked by high winds), the board and staff reorganization, and the work that lay ahead. The calm to action was answered with a proactive plan to establish cohesiveness, get consensus on the Foundation's direction, and improve the efficiency of the board of directors. The first step taken was a revision of the bylaws of the organization to include reduction in the number of board members from 30 to a maximum of 13. Led by Chairman Charles Hilliar, and President Jim Parrish, the small group of committed individuals spent hundreds of hours strategizing the future for LQAF with the extreme challenges left them. Discouragement over the failed building project was pervasive, and was reflected in decreases in membership renewals, and initial reluctance by volunteers to join in. That did not deter the committed staff whose numbers were reduced by over half from 14 to 6, total. They rose to the occasion, fulfilling the mission — even expanding programs, and producing successful revenue generating events. Selling the La Fonda property was not a diversion from the plan to eventually move to the Washington Street site. The timing of the decision to seb was accelerated by the real estate market climate and start-up of the Old Towne La Quinta project that completely surrounds the property. The building has fallen short of serving the needs of the Foundation for many years, but we have been "making due" with a view to relocating to a more suitable site. We have a leaseback agreement with the new owner that runs through 2004. Not all of the news is gloomy, on the contrary, what keeps us going through the adversity are the dear messages and positive reinforcement we receive on a daily basis from fiends, volunteers, and the public we serve. There is a need for our innovative and well -executed programs. We excel at producing quality cultural events. Good people at the Foundation are doing good worm and the benefits are numerous and definable. Service agencies and institutions that support us with grants for our worthy programs and sponsors who recognize the value of association with us further strengthen those messages. In the following pages you will read how very successful we were last year at fulfilling our mission of 'Promoting and Cultivating the Arts through Education.' We cannot do it alone. We need your confidence and participation. We need your expertise and guidance. We need your ideas and enthusiasm. In short we need you! We must locate anew home.for LQAF and the Festival. We must continue to strive for excellence in our offerings and pioneer effective and efficient methods of fulfilling our vital mission. If you havesomething to offer and want to be a part of our team, please call. Sincerely, Christi Salamone Executive Director 8 1�� Li L4 Q1--UNTA APTS FDLA NDAT(DN s a non-profit 501(c)3 charitable organization dedicated to ts 21 year mission of: pron' oti�Gg Rwd 01'd tGv'gtG g the A-i-ts tGrYou9Gr Fa'ucatlovt, This mission is accomplished by producing large-scale public events funding educational programming and scholarships led by professionals, volunteers, and artists. �.1318 !9 La Arts FoLtwotptL.OvL 2002/03 (as o fJuK,e 30,24003) Board Of Directors Jim Parrish President Charles Hilliar Chairman of the Board Mike Fedderly Chief Financial Officer Joan Foster Secretary David Chapman Haddon Libby Susan Schiffer Directors Emeriti Nancy Marks Kay Wolff Christi Salamone Executive Director Kathy Taylor Administrative Manager Anne Barnes Director of Education Kathleen Hughes Events Manager Stevie Blankenship Volunteer Coordinator Jim Christian Staff Accountant Contact Information 78080 Avenida La Fonda P.O. Box 777 La Quinta, CA 92253 760-564-1244 Fax: 760-564-5884 www.lqaf.com E-mail: info®Igaf.com 10 1.37 E,cl u.cat�*o w Prog ra was DOCENT PROGRAM: Making Friends With Great Works Of Art La Quinta Arts Foundation's signature docent outreach program, Making Friends with Great Works of Art, was brought to over 4,400 fourth and fifth graders in 2002/03 attending the Desert Sands and Coachella Valley Unified School Districts. Making Friends with Great Works of Art uses visual art principles and concepts to stimulate critical thinking and creative expression in all academic disciplines. Volunteer docents are formally trained by La Quinta Arts Foundation's Education Department to lead students through a series of lessons introducing the "elements of art." Through these lessons, our docents introduce art concepts including art history, art criticism, and aesthetic valuing. The docents, in a team approach with the classroom teacher, also present special hands-on projects that incorporate the techniques and methods used by the master artists spotlighted in the program. During 2002-03 La Quinta Arts Foundation offered Making Friends with Great Works of Art classes to the following schools within the Coachella Valley Unified School District (CVUSD) and the Desert Sands Unified School District (DSUSD). Docents donated a total of 2,100 volunteer hours to this program during 2002-03. Adams Elementary (DSUSD) Carter Elementary (DSUSD) Eisenhower Elementary (DSUSD) Hoover Elementary (DSUSD) Kennedy Elementary (DSUSD) Monroe Elementary (DSUSD) Roosevelt Elementary (DSUSD) Van Buren Elementary (DSUSD) Westside School (CVUSD) Amelia Earhardt Elementary (DSUSD) Cesar Chavez School (CVUSD) Gerald Ford Elementary (DSUSD) Johnson Elementary (DSUSD) Lincoln Elementary (DSUSD) Palm View.School (CVUSD) Truman Elementary (DSUSD) Mountain Vista (CVUSD) 2002/03 Docents - La Quinta Arts Foundation wishes to acknowledge and give SPECIAL THANKS to the following docents for their valuable work in bringing the Making Friends with Great Works of Art program to elementary schools in both the Desert Sands and Coachella Valley Unified School Districts. May Bailey Mary Downen Lisa Herbst Cindi Kelly Judy LeBlang Carol Masters Gloria Mucciolo Audrey Pitruzella Rosita Shamis Nan Bauder Deana Elsom Judith Hoyt Pat Kessler Lynne Lockwood Ken Maxwell Ann 011inger Lynn Potter Mary Sullivan Patti Buhai George Elsom Joanne Humphreys Karel Lambell Norma Margot Mary McKinley Carol Orendy Bonnie Powell Gloria Walther Judie Cothrun Mary Hagarth Carolyn Keith Veloris Lang . Marcella Maninan Betty Morgin Deanie Parrish Tom Randall ; eG� RoRt*I.**o vte Proo YaVIiLS - cov,tiwued Young At Art— Provides after school and summer hands-on art instruction for children ages 7-12 in a variety of art disciplines through skill -based classes, working in partnerships with local social service agencies. "Fun with the Masters" — Originally offered at the Boys and Girls Club in La Quinta, this program was expanded in 2002/03 to the Indio Boys and Girls Club site funded by a grant from the Regional Access Project Foundation and Target stores. Docents Patti Buhai (La Quinta) and Gloria Mucciollio (Indio) provided 600 children (unduplicated) with 3,215 individual lesson exposures through a series of classes themed "Fun with the Masters" introducing masters such as Georgia O'Keefe, Claude Monet, and Pablo Picasso and their techniques. These classes are held three days a week after -school throughout the entire school year and during summer recess. Youth Art Works— Under the supervision of professional artists and qualified youth leaders, students are trained to create public art in their communities. The following Youth Art Works projects were completed during 2002/03: Sunline Transit Shelter Poster Competition - LOAF, in partnership with The Desert Sun, Fairway Outdoor Advertising, KMIR 6, and the City of La Quinta, promoted a poster competition for youth 17 years and younger, depicting what life will look like in the Coachella Valley in 75 years. The ten winning images chosen were designed by Cody Pesheck, 11; Alan Legarreta, 11; Lakeisha Jinn M. Rodas, 11; Dallas Aldridge M. Rodas, 11; Peria Garcia-Robledo, 10; Shawna Foster, 9; Jessica Troche, 10; Randy Garcia-Aguiar, 11 and Joel Rogriguez, 12. 10 were unveiled at an installation press conference on October 22, 2003 in La Quinta. Subsequently the winning posters were installed on various Sunline transit shelters viewed by tens of thousands of drivers and passengers every day. Amistad High School Art Program — A new program made possible through a grant received from the Dwight Stewart Foundation serves at -risk youth in an attempt to redirect negative habits to positive artistic energies, to encourage matriculation from high school, and to expose these students to the possibility of careers in art and art related fields. A literal application of the program goal was conducted at Amistad High School in a school mural dedicated to tolerance and understanding. It was done using ceramic tile; 18 Amistad students participated in the project. Art Beat— Transports students from culturally under -served areas to professional art venues such as galleries and artist studios. 1,100 fifth -grade students from 12 East Valley schools were taken on free tours to the Palm Springs Desert Museum. 40 Amistad High School students attended LOAF's Adult Museum Tours to LACMA, Huntington, and San Diego Museum of Art. 1`39 12 mem-bersk"P � i:)eveLopmevvt Membership Revenue & Benefits Fiscal year 2002/03 suffered a significant decline in membership renewals, approximately 43% down from the previous year, and many memberships were renewed, but at a lesser level. The decrease was expected through this transition period for the Foundation, and most probably can be attributed to several factors: The overall economic and giving climate, a lack of confidence from the public due to the uncertainty with the building project, and the fact that membership activities were scaled down as a result of budget cutbacks and redirection of financial and staffing resources towards fulfillment of the mission — ART EDUCATION. La Quinta Arts Foundation membership donations for 2002/03 totaled $90,550 from 390 household memberships. Benefits of Foundation membership include tickets to La Quinta Arts Festival, invitations to special membership events, commemorative Festival posters, and "Member Preferred" discounts on LOAF merchandise Membership Events Desert Plein Air 2003 Poster Unveiling— Poster Artist Charles Muench from Markleeville, CA was present to unveil the 2003 Desert Plein Air Poster from his image, "Desert Palms Morning." Foundation members were personally invited to attend the unveiling ceremony and and exhibition of Muench's other works at The River on Saturday, November 9, 2002. Festival 2003 Poster Unveiling— La Quinta Arts Foundation members at the Friends of the Foundation and Patron levels were invited as complimentary special guests to attend the official 2003 poster unveiling on the evening of Saturday, February 22, 2003 at The Gardens at El Paseo. The unveiling was .held in conjunction with the '"Wine and Music at The Gardens„ charity concert series. 2003 Poster Artist Laurie Bender was on hand to personally unveil the poster created from her watercolor image, Desert Spring. A cheese and wine reception preceded the outdoor or by jazz great Curtis Stigers. The concert was emceed by KJJZ radio personality Jim "Fite Fitzgerald. Patrons' Appreciation— Friends of the Foundation and Patron members were given exclusive entrance to the Friends of the Foundation Garden at Festival all four days. The Friends Garden was up scaled in 2003 with offerings of champagne, individually prepared fruit and cheese plates, and personal servers. 11 13 140 r�evubership � peve�opw�.ewt — covLtiVLL-ec( Community Fundraisers During 2002/03 La Quinta Arts Foundation was the beneficiary of the following fundraisers hosted by local businesses. LOAF gratefully thanks these partners in art for their support. "Wine & Music at The Gardens" Charity Concert Series — La Quinta Arts Foundation was the designated charity of the Curtis Stigers outdoor concert and wine and cheese reception at The Gardens on El Paseo on the evening of February 22, 2003. All proceeds from ticket sales (420 $10 tickets) to the sold out concert were retained by the Foundation. An added highlight of the evening was the unveiling of the 2003 Festival poster, "Desert Spring," a watercolor by Laurie Bender. Macy's Community Shopping Day 2003 - LOAF was one of the Valley nonprofits selected by the Macy's Palm Desert store to be participating beneficiaries of their annual fundraiser promotion. LOAF sold 56 coupons for $10 each, which gave coupon holders 20% discounts at Macy's on April 15, 2003. LOAF provided volunteers to sell coupons and set up a children's art exhibit at the store on the day of the promotion. CBS2 Charity Challenge — La Quinta Arts Foundation was one of 31 local charities that participated in a series of eight separate events held during the months of May and June with the goal to win cash prizes and ultimately a van donated by Kia Superstore. The competitions were held throughout the desert and pitted charity against charity in contests of skill and mobilization. Unfortunately, LOAF did not win the van (which was envisioned to provide traveling art instruction, possibly to itinerant farm workers' children and tentatively named "Van Gogh") but placed a respectable 11* Place. vo[vw1vteer seN�Cts Volunteers are the lifeblood of all Arts Foundation's events, programs, and services. Volunteers are needed to assist throughout the year as docents in schools, and as office volunteers. Event volunteers at La Quinta Arts Festival and Desert Plein Air serve as artist ambassadors, student tour guides, and in areas including grounds layouttset-up, retail sales, information, registration, and in the wine and beer gardens. LOAF Volunteers contributed a total of 5,200 volunteer hours during the 2002f03 season! Additionally, 34 trained docents volunteered more than 2,100 hours to bring art awareness to 5,000 area school children through the Making Friends with Great Works of Art program. Volunteer Open House— La Quinta Arts Foundation hosted an informative Volunteer Open House for approximately 100 current and prospective volunteers on October 18'h at the Palm Desert Library. Staff members distributed information, and attended to sign-up sheets for various volunteer areas emphasizing our volunteer creed, "Special skills are not required, only special people." Festival Volunteers La Quinta Arts Foundation pays tribute to each and every one of the 435 volunteers of Festival 2003. We offer SPECIAL THANKS to the following Festival Chairs and Co -Chairs who were key people to the success of Festival: Ambassadors Friends Garden Artist Garden Information Registration Volunteer Check - In Luci Calstoy Sue Graham Gerry Perchetz Barbara Jamtgaard Janet Thompson Pat Strohecker Lee MacKenzie Kay Wolff Marge Cleveland Annette Rakowitz Chuck Thornton Stage Robb Atkins Management Jerry Barba Gates Mercedes Courting Bob Courting Bill Hall Retail Frank & Fran Handler Finance Judges' Guides Wine Garden Marge Sinicropi Kelly Hall Marcia Riley Kathy James Lee Miller Volunteer Appreciation— A "Volunteer Garden" was made available each day to Festival Volunteers offering refreshments and continental style breakfasts and lunches. La Quints Arts Foundation expressed indebtedness to its valuable volunteer force, via a full page ad in The Desert Sun naming each volunteer that contributed time to the Foundation's programs and events. In addition, Festival volunteers who went "above and beyond" were presented with a bottle of wine compliments of Forest'Glen Premiere Wines and two commemorative wine glasses from Festival 2003. 4#-)` 15 4. Desert PLe'b"k.4b"Y 2003 La Quinta Arts Foundation presented the 5° Annual Desert Plein Air competition and exhibition Januaryl9-26, 2003. Spectators were encouraged to watch the 55 artists in action during the week from locations throughout the Coachella Valley. Among the juried exhibitors was Charles Muench, Desert Plein Air 2003 Poster Artist, who was selected for his painting, "Desert Palms Afternoon." In addition to the juried exhibitors were Invited Guest Artists: Saim Caglayan from Kilauea, HI; Albert Handell from Santa Fe, New Mexico; and Michael Obermeyer from Aliso Viejo, CA. The weeklong series of Desert Plein Air events included the following components, which were facilitated by the assistance of 118 LOAF volunteers. Artist Registration & Orientation— Sunday, January 19, 11 am to 3pm at La Quinta Resort & Club. Artists remained on the grounds to paint at the historic resort throughout the day attracting very large crowds and media attention. Desert Plein Air Lecture & Quick Draw Competition —Thursday, January 23 at The Living Desert: Lecture 1:00 to 2:15 p.m.; Quick Draw 2:30 to 4:30 p.m. Albert Handell, noted plein air authority and painter, lectured to a standing room only crowd on the history and techniques of plein air painting. The Quick Draw is a competition in which artists have two hours to paint a Living Desert scene. More than 300 individuals remained to watch the artists at work and to attend the Quick Draw Exhibition afterward. Desert Plein Air Public Exhibition & Sale —Saturday & Sunday, January 25 & 26, 10:00 a.m. to 4:00 p.m. at The River in Rancho Mirage. Desert Plein Air artists exhibited their paintings from the past week, as well as others from their private collections. Desert Plein Air art sales reached $110,009; artists donated 20% of their sales to LOAF's Educational Outreach Programs. The River reported that lunch sales increased by over 30% that weekend and requested that LQAF consider doing more shows at this venue. Desert Plein Air 2003 Award Winners— The Best of Show, Quick Draw, and Poster Artist judges were Charles Hilliar, artist and Chairman of the Board for LQAF; Christine Giles, Associate Curator of Palm Springs Desert Museum; and David Batterson, Associate Editor and art columnist for Palm Springs Life magazine. Best of Show— Niles Nordquist, Escondido, CA, "Red Canyon" Quick Draw— Robert Rohm, Flower Mound, TX, "Santa Rosa Mountains" Artist's Choice — Jason Situ, El Monte, CA 2004 Poster Artist- Robert Sandidge, Diamond Springs, CA, La Quinta Civic Purchase Awards — Andre Blanche, La Quinta, CA Robert Fleming, Bermuda Dunes, CA Desert Plein Air 2003 Sponsor Recognition— LQAF gratefully acknowledges and thanks the following partners for their support: Premier Sponsor The City of La Quinta Premier Media Sponsor KMIR 6 Promotional Sponsors The River The Living Desert Coachella Valley Printing Group, Inc. 143 i6 Ua 62,V6�VvtP marts :Fest�va L 2003 The 21 ' Annual La Quinta Arts Festival was held March 20-24, 2003 on the Washington Street site for the second year, where 265 professional artists exhibited their works in painting, sculpture, photography, jewelry, fine craft, drawing, printmaking, and other design categories. • A Children's Interactive Art Center on Saturday and Sunday provided a venue for 500 children of all ages to create original mixed media collages. ■ LOAF provided free shuttle parking from downtown La Quints on Thursday and Friday and from Desert Sands Unified School District offices on Saturday and Sunday. • An Opportunity Drawing raised incremental revenue through $5- ticket sales. Prizes were donated by local and corporate businesses. La Quinta Arts Festival 2003 drew 19,815 visitors and scored impressive art sales of $1,597,165. Artists donated 20% of sales to LOAF with total on -site Festival net income reaching $500,828—a 28% increase in net profit over the previous year. Festival Entertainment— Staged daily in the Terraces Amphitheater were performances by popular Valley entertainers Mike Costley, Kai David & the Real Deal featuring Lauri Bono, John Stanley King, Lola Rossi & Johnny Meza, Pat Rizzo, and Yve Evans. Other performers included the Jennifer York Quartet, The Chris Compton Band, The Big Shots Starring Tony Fabulous, Lori Andrews Quartet, John Pagels, and the Patrick McCaffrey Quartet. Jamaica Bob offered his "Calypso for Kids" program on Saturday morning and Mike Costley presented a "Desert All -Star Jam" featuring 18 performers on Sunday afternoon. Marilee Wamer-Riva and Derrik Lewis donated their time to emcee the entertainment. Festival 2003 Poster Artist— Native Californian Laurie Bender, from Sherman Oaks, CA. Her vibrant watercolor painting, Desert Spring, was chosen as the Festival 2003 poster image at the 2002 Festival. Special Guest Artist —Chief Zacheus 0. Oloruntoba, 82-year old heir to the throne of Ogidi, Nigeria. Chief Oloruntoba creates tapestries and "toiles"—paintings on cloth using vegetable dyes and ink. His creations have been acquired by the Museum of Modem Art in New York City, and reproduced on UNICEF greeting cards. Festival 2003 Award Winners— Cash prizes totaling $4,000 were awarded to: Best of Show: Fabrice Landa, Sebastopol, CA - Design Awards of Excellence: Painting - Harold Pickem, San Diego, CA Photography — Seth Hoffman, La Quinta, CA Jewelry— John Biagiotti, Ben Lomond, CA Design — Lynn Kishiyama, Paso Robles, CA' Sculpture — Elis Gudman & Kirk Slaughter, Bodega, CA Craft — Marilyn Evans & Williams Stevens, Trego, MT La Quinta Civic Purchase Award: John Seeman, Laguna Beach, Sculpture 114 '� La 0_,v_bt&t0 AYtS:FeSt'b*VRL ��a Festival 2003 Judges— LOAF thanks the following individuals for donating their time and expertise to serve as judges for the Festival artist competition. Two Dimensional ■ Katherine Plake Hough - Direcotor of Art Collections/Exhibitions and Curator of Art, Palm Springs Desert Museum ■ Robert Menifee - Owner of Galleria Dos Damas, Palm Springs ■ Mike Teague - Owner Vin Deo Design in Indio, art teacher at Amistad High School ■ Sandy Swan — Owner Swan Design & Screenprint • Randall Erickson — Owner Randall Erickson Contemporary Art Gallery, Palm Springs Three Dimensional ■ John Nagus - Former Art Director City of Palm Desert ■ Hovak Najarian — Professor Emeritus, College of the Desert ■ Russell Jacques - International metal sculptor, credits include The national Gallery of Nova Scotia, The National Ballet of Canada, The National Academy of Design ■ Erik Dolvik - Owner Reverence Jewelry Design Gallery on El Paseo ■ Eric Johnson — co-owner Tre Contemporary Fine Art Gallery on El Paseo Festival 2003 Sponsor Recognition— LQAF gratefully acknowledges and thanks the following partners for their support: Premier Sponsor: Exclusive Wine Sponsor: Media Sponsors: Presenting Sponsor: Contributing Sponsors: Children's Activities Sponsors: Opportunity Drawing Sponsors: The City of La Quinta Forest Glen Winery KMIR 6 The Desert Sun West Coast Turf Heimark Distributing Larsen Golf Cars Trader Joe's Coca-Cola R.D. and Joan Dale Hubbard Foundation Coeta and Donald R. Barker foundation Delta Air Lines Orient Express Hotels John Weidenhamer Bighorn Golf Club Cuistot Restaurant Balloon Above the Desert Reverence Jewelry Design Gallery 115 18 La Quinta Arts Festival —March 20-24, 2003 2003 Attendance 19,815 Residents vs. Visitors 64% Coachella Valley Residents 36% Out of valley visitors 18% Other Califomia cities 14% Other States (primarily Washington, Oregon) 4 % Other Countries (primarily Canada) Local Resident Breakdown 35% Palm Desert 33% La Quinta 10% Rancho Mirage 8% Palm Springs 8% Indio 7% Indian Wells 4% Cathedral City 4% Other desert cities Ages Attending 31 % 65-74 29% 55-64 21 % 45-54 8% 75+ 7% 35-44 3% 25-34 1 % 18-24 Annual Income Primary Reasons for Attending Student Tour Visitors Children's Art Center Visitors 45% - $50-100,000 27% $100-200,000 17% $200, 000+ 12% Less than $50,000 #1 View the artwork #2 Social outing #3 Entertainment #4 Children's art activities Friday, March 20 Saturday, March 21 Sunday, March 22 736 Children 225 Children 275 Children 19 lit MpOzettwe� Pu.bL�c R.eLat/ows In November 2002, WordSmiths Communication was retained to provide comprehensive marketing and public relations assistance to La Quinta Arts Foundation. A formal comprehensive communications plan was developed after many hours of planning meetings with board and staff. The plan succeeded in defining target audiences, goals and objectives, provided analysis of targets and established action plans. The plan was re -visited and updated in June 2003 to reflect planning and objectives for the upcoming fiscal year. Although LOAF's marketing budget was cut by two-thirds over previous years, overall 2002/03 objectives were successfully achieved. In spite of the lagging economy and La Quinta Arts Festival beginning the day after war in Iraq was declared, attendance and revenue goals at events were realized with the bottom line enhanced to provide the programming funds required for another year. LOAF also enjoyed good news media coverage of all mission related activities such as the docent program and the scholarship awards ceremony. On the whole, LOAF received very positive and extensive media coverage for all events and activities; existing media relationships were nurtured, and new relationships developed. A large challenge inherited by the public relations team included responding to the negative impact of the Foundation's failure to develop the Washington Street property, in a climate of the much publicized corporate scandals of Enron and WorldCom. Although a few disapproving letters to the editor appeared in The Desert Sun —mostly authored by a contingent of opponents who were unsuccessful at halting the project —equal time and opportunity for rebuttal was negotiated with the publication. Advertising —An estimated 95 million total media exposures were achieved with a limited 2002/03 marketing budget, which employed a targeted direct -mail campaign .and concentrated mass media advertising primarily through the following media outlets: The Desert Sun Desert Post Weekly Press Enterprise The Bottom Line Mobile Nome News Southwest Arts Magazine Key Magazine KMIR 6 NBC KESQ KPSP KEZN KWXY Time Wamer Cable Media Sponsors and In -kind Services — La Quinta Arts Foundation thanks the following marketing partners for their support during 2002/03: ■ City of La Quinta - A marketing services contract with the City of La Quinta provided $75,000 for La Quinta Arts Festival Marketing and $25,000 for Desert Plein Air marketing. Through the agreement, the City of La Quinta was featured prominently in television, radio and print advertising, as well as* acknowledged with on -site signage at events. ■ KMIR TV - In the final term on a multi -year contract, KMIR matched $6,000 in television advertising for La Quinta Arts Festival. ■ The Desert Sun - $6,000 in print advertising space was donated by The Desert Sun. 4 Q 147 w2sh-b'v�tow Street gui,Ld�wg Project We are sure that everyone familiar with La Quinta Arts Foundation is feeling the same profound sadness as the staff, board of directors, members, and volunteers regarding the Foundation's reluctant decision to abandon the Washington Street building project. Nearly six years of effort went into the planning and initial development of the project, and it is extremely disappointing to count this as the ONLY goal not realized in the Foundation's 21- year history. As communicated to LOAF's constituency through various correspondence over the past year, the combined effect of project cost overruns, the debt structure, meeting the land donor's mandated timelines for completion, failed fundraising in a very poor economic and charitable giving climate, and ultimately not being able to gain occupancy of the site, led the Board of Directors to an inevitable conclusion: to sell the property to satisfy LOAF's outstanding obligations. Conversely, the real estate market in the Coachella Valley remains strong, and the Board correctly surmised that a successful sale of the property had the potential to allow LOAF to recoup investment and remain viable. The decision to actively market the property was made and a real estate broker retained in November 2002. Several initial inquiries have been received and the potential for a successful sale remains strong. It remains LQAF's objective to seek an alternative permanent location for classrooms, galleries, and administrative offices and for La Quinta Arts Festival with proceeds from a sale. It is also our intention to appropriately honor contributors to the project who shared the dream of a regional art education center. We have not given up on ultimately fulfilling that goal. If you have any questions on the Washington Street building project, please contact Christi Salamone, Executive Director at (760) 564-1244 ext. 111. 21 C-v mz '� O SO y.+ C • m 7 m S Q Cc ?C N m m m O N m C m m = c D m • WDN7 m OIn C) N 1 N N • N r• O �. S $ _ ^^G Y! O • O W CL z 3 N s 3 S N m w m m < N O m N S D O � V N Dc o m o> m2 a� nc � m O� 0 30 � c DO0Ci 0�—; m ocn .,,� �mO ��m m CD DCD cG - co5. O R. 3cD� >N �� CD Z �? 2) fA�09000 Do � � o _o N D CD C gmc �° oa�Dw CD 3CD y 33 -n acao � m cD • C N pNj A) ff fA .� c�D 0) CD W G to cn S ui CD > 0w D W m O 0)NO N a�� r �� 0 � 7 > DQcOD .0 O 7 y t� CL cn sv -CD2) c a a'�-. �U) c 0 0 c'� ?� "0, CD �a W �_ 0 oaz% o a N m o.o o 5� a- ch Cy 'y-m = ID 0 o`" c ° w y a W f=a� (D � R. 3 o 3 c cn a o cCO) c �. N m m D S O C N 0 `-' CD N CD N C C m m CD x ik C O co C N O a CA m 0 iNNA OA M(n 0ul �O� A OA(� C W j -4 -4 C fl` 1p 07 0 w ol A(nO 00 W N 00 �+OAN-+ ONA 00) ONQrl -+CT) 42 119 o co fl mm �a to c � �3 a ?D cCo c5.� �+ me o� �2 �,�c V A 'c Q N m > Cos N2 m Oar � ova °Qa. CL 0 N Q 'o 'o m o' C W 3 CC! D w o m 0. 0 c D A � N 0 n<cnDD ? 0 ; � � CD �Dm 0 � � � � � Z ID CD CD NCD `G m fA/1 m m ar � m A < v= 0—A 2. ny Q° � Cm ...CD CD su yD, m —1 c(o� �D� y � -- n� 0 � 3 a, CD w 0 D ji !v cn � �c <� � O c _ I CD ^'� =D N G 0:L ash = a � 3a y x a: _ m fl1 •G ? m m O C o r- r m o) D^ m m d N ? "{ —• r 3a, CD wm m �m cr =—r o c :N c 4� -rII Q�m I �°�,=�MCC D >v m —v� I c w — M I vw moo= CL O y <� t 0 tv y� m C v c m o CD A CD m t '� Dp) N I N tD Z CD� O C. Ut I Np m 3 to � a; D (D pa I D = m a�o D r V N CD �co C C 2) Q N D W 0 O O N m y N M m M .+ .� CD 0 r m C m �aa 1m y + Mcm c =o �� o r D ° y �o Z m 3 G C ff CD v VI tw it lb N 4m GJ O) V CA A O cn 0 cn Cn CD N Co w—(nCb $ v+ a) cn 0 cn -& amooaCJ m Co o " O o w cn V4 cn -+ C. � C O Z O -24 wcn ma m� �� Z 0 ch r a D C a m Ch 0 Z a 0 Z � 1 j0. LA QUINTA ARTS FOUNDATION FINANCIAL STATEMENTS DUNE 30, 2003 Po6e.t,. 36sta 1 AN ACCOUNTANCY CORPORATION 151 AN ACCOUNTANCY CORPORATION 82-632 HWY 1117 SUITE 11-1, INDIO, CALIFORNIA 92201. (760) 347-3665 - FAX (T60) 775-7425 MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AOBEAT J. TESTA, CPA --'_-- __-_- MEMBER OF THE CALIFORIVIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS BOARD OF DIRECTORS LA QUINTA ARTS FOUNDATION LA QUINTA, CALIFORNIA INDEPENDENT AUDITORS' REPORT We have audited the accompanying statement of financial position of La Quinta Arts Foundation, (a California non-profit corporation) as of June 30, 2003 and the related statements of activities and of cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted the audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 that 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 La Quinta Arts Foundation as of June 30, 2003, and the changes in net assets and cash flows for the year then ended in conformity with generally accepted accounting principles. INDIO, CALEFORNIA OCTOBER 22, 2003 ROBERT J. TESTA AN ACCOUNTANCY CORPORATION By- ROBEirr J. TEST4( CPA LA QUINTA ARTS FOUNDATION STATEMENT OF FINANCIAL POSITION JUNE 30, 2003 UNRESTRICTED TEMORARILY RESTRICTED SCHOLARSHIP OPERATING WELDING AND GRANT ASSETS FUND FUND FUNDS TOTAL Cash on hand and in banks S 934,217 S 0 S 22,625 S 956,942 Equipment, net 22,778 0 0 22,778 New Land acquisition costs 0 1,009,161 0 1,009,161 New Land development costs 856,260 3,908,170 0 4,764,430 Deposits 30,830 0 0 30,830 TOTAL ASSETS S 1,844,085 S 4,917,331 S 22,625 S 6,784,041 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 6,828 $ 44,306 $ 0 $ 51,134 Notes payable 0 943,250 0 943,250 Accrued wages and vacation pay 16,408 0 0 16,408 Bank construction note payable 0 2,649,042 0 2,649,042 Contingent liability (Note 12) - - - - Total Liabilities 23,236 3,636,598 0 3,659,834 Net Assets 1,820,849 1,280,733 22,625 3,124,207 TOTAL LIABILITIES AND NET ASSETS S 1,844,085 $ 4,917,331 $ 22,625 S 6,784,041 The accompanying Notes to Financial Statements are an integral part of this statement. lea6e t j Jdta '7) AN ACCOUNTANCY CO"OBATION 2 LA QUINTA ARTS FOUNDATION STATEWNT OF ACTIVITIES FOR THE YEAR ENDED JUKE 30, 2003 , UNRESTRICTED TEMPORARILY RESTRICTED SCHOLARSHIP OPERATING BUILDING AND GRANT SUPPORT AND REVENUES FUND FUND FUNDS TOTAL Support Donations and grants $ 91,550 $ 61,579 $ 9,225 $ 162,354 Revenues Spring Art Festival Plein Air Show Volunteer services Recovery of fund raising costs Investment income Total Revenues TOTAL SUPPORT AND REVENUES TRANSFER OF FUNDS Net assets released from restrictions Transfer from Building to Operating Fund (Note 13) TOTAL TRANSFER OF FUNDS TOTAL EXPENSES Administration Development Education Depreciation Restricted Fund expenses Total Expenses 387,236 0 0 387,236 2,208 0 0 2,208 7,127 0 0 7,127 0 13,467 0 13,467 4,430 101 0 4,531 401,001 13,568 0 414,569 492,551 75,147 9,225 576,923 41,301 786,556 827,857 1 3201-408 0 (41,301) C (786,556) 0 0 (786,556) (41,301) 0 (711,409) (32,076) 576,923 137,832 0 0 137,832 33,724 0 0 33,724 137,260 0 0 137,260 10,027 0 0 10,027 41,301 0 0 41,301 360,144 0 0 360,144- koiert j 3*6ta AN ACCOUNTANCY CORPORATION 3 LA QUINTA ARTS FOUNDATION STATEMENT OF ,ACTTVTTIES FOR THE YEAR ENDED JUNE 301,2003 -CONTINUED- UNMTRICTED TvdMRARMY RESTRICTED SCHOLARSHIP OPERATING BUMMING AND GRANT FUND FUND FUNDS TOTAL Increase (Decrease) In Net Assets from Operations 960,264 (711,409) (32,076) 216,779 EXTRAORDINARY REVENUE Gain from sale of La Fonda Building (Note 6) 401,219 0 0 401,219 Increase (Decrease) in Net Assets 1,361,483 (711,409) (32,076) 617,998 Net Assets, July 1, 2002 459,366 1,992,142 54,701 2,506,209 NET ASSETS, JUKE 30, 2003 $ 1,820,849 $ 1,280,733 $ 22,625 $ 3,124,207 The accompanying Notes to Financial Statements are an integral part of this statemeaf:-. c7 )8Polert i Jasta or_ 1 r AN ACCOUNTANCY CORPORATION J 4 LA QUINTA ARTS FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUKE 30, 2003 , UNRESTRICTED TEMPORARILY RESTRICTED SCHOLARSHIP CASH FLOWS FROM (USED BY) OPERATING BUHMING AND GRANT OPERATING ACTIVITIES FUND FUND FUNDS TOTAL Increase (Decrease) in net assets S 1,361,483 $ (711,409) $ (32,076) S 617,998 Adjustments to reconcile increase (decrease) in net assets to net cash provided (applied) by operating activities: Depreciation 10,027 0 0 10,027 Changes in: Accrued interest receivable 431 0 0 431 Accounts payable (10,419) 8,998 0 (1,421) Accrued wages payable (2,825) 0 0 (2,825) Prepaid expenses 0 22,658 0 22;658 Other payables 0 (567,833) 0 (567,833) Total Cash Flows From (Used By) Operating Activities 1,358,697 (1,247,586) (32,076) 79,035 CASH FLOWS FROM (USED BY) INVESTING ACTIVITIES Changes in investments 41,600 0 0 41,600 Improvements made (5,119) 0 0 (5,119) New Land development costs (856,260) 580,322 0 (275,938) Deposits (30,830) 30,830 0 0 Book value of property sold 101,540 0 0 101,540 Total Cash Flows From (Used By) Investing Activities (749,069) 611,152 0 (137,917) CASH FLOWS FROM . FINANCING ACTIVITIES Bank construction loan advances 0. 411,152 0 411,152 Increase in notes payable 0 174,735 0 174,735 Total Cash Flows From Financing Activities 0 585,887 0 585,887 leo6s,t,. 5*jtz j SQ 29 AN ACCOUNTANCY CORPORATION 5 Increase (Decrease) In Cash Cash and Cash Equivalents, July 1, 2002 CASH AND CASH EQUIVALENTS, JUNE 30, 2003 LA QUINTA ARTS FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 309 2003 CONTINUED - UNRESTRICTED TEP"ORARILY RESTRICTED SCHOLARSHIP OPERATING BUU DING AND GRANT FUND FUND ADS TOTAL 609,628 (50,547) (322076) 5272005 324,589 50,547 54,701 429,837 $ 934,217 $ 0 $ 22,625 S 956,842 SUPPLEMENTARY INFORMATION Interest paid $ 0 $ 170,847 $ , 0 $ 170,847 Income taxes paid $ 0 $ 0 $ 0 $ 0 The accompanying Notes to Financial Statements are an integral part of this statement. leoierti 304ta 30 AN ACCOUNTANCY 6 CORPORATION LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS IM 30, 2003 SIGNIFICANT ACCOUNTING POLICIES A - Accountina Method La Quinta Arts Foundation maintains its books on the accrual basis method of accounting. During the year ended June 30, 1997 the Organization has adopted the accounting treatment prescribed by the statement on financial accounting standards - FAS #117 and the method of reporting for contributions FAS #116. These methods are required for non- profit organizations. Therefore, the financial statement presentation has been made in accordance with these standards. The following are the definitions of the various classes of net assets. Unrestricted Unrestricted assets are those currently available for use or restricted only by the actions of the board of directors of the Organization. Temporarily Restricted Temporarily restricted net assets include gifts or pledges which impose donor restrictions as to the use of the funds. At the time the funds are used for the purpose designated they will become unrestricted. Permanentiv Restricted Permanently restricted net assets include gifts or pledges which impose donor restrictions that the corpus be invested in perpetuity and only the income be made available for program operations in accordance with donor restrictions. B - Provision for Income Taxes No provision for income taxes has been made since the Organization is not subject to Federal and State income taxes on its exempt purpose income. Any unrelated business net income would be reported for tax purposes. No unrelated net income was realized for the year ended June 30, 2003. C - Cash and Cash Eauivalents For purposes of the statement of cash flows, cash and cash equivalents include cash on hand, demand deposits with financial institutions and money market accounts. The Organization also considers all highly liquid investments purchased with original maturities of 90 days or less to be cash equivalents. D - Fixed Assets Property and equipment are stated at cost. Depreciation is provided utilizing the straight line and declining balance method with estimated useful lives of five to thirty one years. E - Investments Under the new method of financial statement presentation, investments are required to be stated at market value. AN ACCOUNTANCY CORPORATION r 7 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS JUNE 309 2003 -CONTMED- SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F - Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 1 - HISTORY OF THE ORGANIZATION La Quinta Arts Foundation was incorporated in the State of California as a non-profit organization on November 12, 1982. The Corporation was formed to organize and operate community art related events, promote and provide art education and grant scholarships. It's funding is provided by program fees, commissions, memberships, grants and donations. The office of the Organization is located in La Quinta, California. NOTE 2 - EQUIPMENT Equipment is recorded at cost and is being depreciated over the estimated useful lives of the various classes of assets utilizing the straight-line method. A summary of the equipment at June 30, 2003 is as follows: Office equipment $ 83,191 Furniture 9.576 Total 92,767 Less accumulated depreciation 69.989 Net Book Value of Equipment and Furniture 1 73$ The depreciation for the year totals $10,027. NOTE 3 - FUND BALANCES Oaeratine Funds The operating fund is unrestricted. These funds are currently available for use. The Board of Directors has discretionary control over these funds in carrying out the Organization's programs and services. Buildine Fund As a result of a fund raising campaign, the foundation has accumulated funds which are restricted to property acquisition and construction of facilities. Grant Fund The Organization receives grants from various organizations which are designated for specific purposes. Koiert') Jssta AN ACCOUNTANCY CORPORATION a 32 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEiVIENTS NNE 30, 2003 -CONTIMD- NOTE 4 - GRANTS Grants have been applied for and received by the Foundation for various purposes. The following is a summary of grant activity for the year ended June 30, 2003: UNUPENDED GRANTS UNEXPENDED GRANTOR JULY 1. 2002 RECEIVED EXPENDITURES JUNE 30, 2003 Ramirez scholarship $ 100 . $ 7,925 $ 6,900 $ 1,125 National Charity League 900 0 900 0 Education grants 110 0 110 0 Marks Scholarship 3,941 0 2,441 1,500 Memorials 5.150 0 4,950 200 Dwight Stuart Youth Fdn-Murals 44,500 0 26,000 18,500 Alisa Lawson Scholarship 0 600 0 600 Melville Keever Scholarship 0 700 0 700 NOTE 5 - CITY CONTRACT The City of La Quinta has given $100,000 to the Foundation for the promotion of art and to subsidize various community events. NOTE 6 - EXTRAORDINARY INCOME On April 18, 2003 the Foundation sold a building located at 78-080 Avenita La Fonda, La Quinta, California. This was the building in which the Foundation conducted business. The following is a summary of the gain on this sale: Sale Price $ 515,000 Less Cost of Sale 32,241 Net Sale Price 482,759 Basis of Prone Land $ 20,000 Building 90,479 Improvements 88,550 Easement Credit (20.000) Total 179,029 Less Accumulated Depreciation 97,489 81,540 Extraordinary Gain on Sale It is expected that the net proceeds of the sale will be reinvested in a future facility for La Quinta Arts Foundation. Poiert4) 5"ta AN ACCOUNTANCY CORPORATION 9 1F0 -. 3 3 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 -CONTINUED- NOTE 7 - LEASE COMMITMENTS Subsequent to the sale of the La Fonda facility the Foundation leased back the premises for a term of one year, terminating in April of 2004. Monthly rent is $2,991. The landlord is La Quinta ARC, LLC. NOTE 8 - VOLUNTEER HOURS For the year ended June 30, 2003 volunteer service hours totaled 6,545. Of this total, 1,662 hours were devoted to board and committee meetings. NOTE 9 - CONSTRUCTION LOAN In order to originally finance construction on the donated land located in La Quinta, California, the Foundation originally committed to borrow $2,500,000 from the First Community Bank, which is now the Pacific Western National Bank. The loan originally called for interest only payments until September 23, 2002 when modifications would be made and the Bank would refinance the property based on a twenty-year amortization. Subsequent to this the loan was amended on January 28, 2002, September 23, 2002, March 17, 2003, and July 9, 2003. Additionally, subsequent to the date of the audit on October 8, 2003 a new amendment will take effect. This amendment will renew the loan for one year until September 23, 2004 with the interest rate increased to the Wall Street Journal prime rate plus 1/2%. Interest only will be due on this note unless the Foundation enters into an agreement for the sale of the property. In addition, the bank may require a principal reduction based on availability of funds realized from a future purchase agreement. The total principal amount authorized at this time is $3,033,090. The balance drawn on the loan and outstanding at June 30, 2003 totals $2,649,042. This note is fully secured by the property located on Washington Street in La Quinta, California. NOTE 10 - NOTES PAYABLE Due to cash flow concerns the Foundation negotiated a deferred payment plan with several of the contractors who performed services regarding the improvement of the Washington Street property. Notes were executed prior to June 30, 2002. However, several amendments have been made to these notes based on adjustments for work not completed and other issues. A summary of the notes is as follows: A 10% note payable to Superior Ready Mix bears interest only payments commencing June 1, 2002 and continuing on the first day of each month until May 30, 2003 at which time principal and accrued interest shall be due and payable in full. The note was amended on July 1, 2003 extending the maturity date to November 30, 2004 and adjusting the interest to 6% per annum. Monthly payments effective July 1, 2003 total $1,447 including interest with the remaining balance all due and payable on November 30, 2004. In the event the Foundation sells the property located on Washington Street, within 30 days after closing escrow the Foundation will pay the unpaid principal balance of the note and all interest accrued thereon. 3 63,684 leoierl j Jesta 1 AN ACCOUNTANCY CORPORATION 3 10 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 -CONTMED- NOTE 10 - NOTES PAYABLE (CONTINUED) A 10% note payable to Brudvik Construction bears interest only payments commencing May 1, 2002 and continuing on the first day of each month there after until April 30, 2003 at which time principal and accrued interest shall be due and payable in full. This note was amended on June 10, 2003 between the parties. The amendment agrees to reduce the balance by $100,000 due to work not completed. The term of the note is extended to October 30, 2004. In the event the Foundation sells the property located on Washington Street, within 30 days after closing escrow the Foundation will pay the unpaid principal balance of the note and all interest accrued thereon. 300,440 A 10% note payable to A-1 Aggregates Inc. bears interest only payments commencing May 1, 2002 and continuing on the first day of each month there after until May 30, 2003 at which time principal and accrued interest shall be due and payable in full. The parties amended this agreement on June 10, 2003. At the time of the amendment the La Quinta Foundation paid to A-1 Aggregates Inc. the sum of $25,000 to reduce the balance to $64,794. The interest rate was reduced to 7% at that time and the due date extended to October 30, 2004. In the event the Foundation sells the property located on Washington Street, within 30 days after closing escrow the Foundation will pay the unpaid principal balance of the note and all interest accrued thereon. 64,794 A 10% note payable to Mark Logan Landscape Inc. bears interest only payments commencing May 1, 2002 and continuing on the first day of each month there after until April 30, 2003 at which time principal and accrued interest shall be due and payable in full. An amendment was agreed to on June 10, 2003 between the parties. In the amendment the parties agreed to reduce the principal amount by $91,297 for work not done. The due date for the payment of the principal amount under this amendment is extended to June 9, 2004 and at the desire of the Foundation, may extend the due date an additional six months to December 9, 2004 by paying Mark Logan Landscape Inc. the sum of $30,825 on or before June 9, 2004. In the event the Foundation sells the property located on Washington Street, within 30 days after closing escrow the Foundation will pay the unpaid principal balance of the note and all interest accrued thereon. 123,300 �2o6g�t Je�ta 35 AN ACCOUNTANCY CORPORATION 1 V ti 11 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 -CONTINUED- NOTE 10 - NOTES PAYABLE (CONTINUED) Subsequent to June 30, 2003 an agreement was made creating a note payable to J.H. Thompson & Sons, Inc. for prior contracting services. The total balance due at June 30, 2003 totals $391,032. A payment in the amount of $100,000 was made by the Foundation. The. remaining balance of $291,032 shall bear interest at 6% per annum from September 1, 2003. All interest will accrue until April 1, 2005 or the date upon which escrow on the Washington Street property closes, whichever comes first. 391,032 NOTE 11 - LAND DONATION The Foundation received a donation from the Highland Street Connection on May 1, 1998. The funds were used to purchase certain acreage in La Quinta, California to build the new facility for the Organization. The property is located on the east side of the mountain along Washington Street and is a larger part of an entire parcel of 47.7 acres which was purchased jointly by the Foundation and St Francis of Assisi Church. The Foundation presently owns 28.33 acres as a result of this donation. The donation had certain restrictions as to the use and timing of the property development as follows: 1. The Foundation would have five years from the date of recording of the deed to have completed construction of the festival grounds, parking lot and the administration building. 2. The Foundation would not sell, convey, transfer, dispose or encumber the real property described in the deed without first obtaining consent of the Highland Street Connection. The parties are presently disputing this provision. As of the date of these financial statements the Foundation has determined that the property will not be further developed and has put the property up for sale. The reason is due to insufficient fund raising which made the completion of the property not feasible. There is certain litigation with the Highland Street Connection based on the original donation. This potential liability is described in Note 13 of the notes to the financial statements. NEEM's WE FIRID AN ACCOUNTANCY CORPORATION 12 LA QUINTA ARTS FOUNDATION NOTES TO FINANCIAL STATEMENTS JUKE 30, 2003 -CONTEMD- NOTE 12 - CONTINGENT LIABILITY Based on the situation described in Note 12, the La Quinta Arts Foundation was subject to a lawsuit arising from its efforts to sell the Washington Street Property. The lawsuit has been filed by the Highland Street Connection, the original donor of the property, on May 6, 2003. The suit seeks restitution equal to the Highland Street Connection's 1998 gift to La Quinta Arts Foundation in the amount of $950,175 which was designated for the purchase of the Washington Street property. The suit further seeks to recover Highland Street Foundations' litigation expenses associated with this action. The ultimate effect on future financial results is not subject to reasonable estimation due to considerable uncertainties as to the final outcome of this lawsuit. It is the opinion of the Foundations' legal council that a monetary liability is inconsistent with the conditions and agreements of the gift. No material losses are anticipated by reasons of such agreements and conditions. It is possible that a significant amount will be eventually reimbursed to the Highland Street Connection based on a future sale of the property and the ultimate liability resulting from said lawsuit may be significant to results of operations in the period recognized. The management of the Foundation does not anticipate it will have a material adverse effect on the Foundations' financial position or future liquidity. Therefore based on the opinions of legal counsel, it has been determined that at June 30, 2003 the Foundation recorded no liability for said lawsuit on the statement of financial position. NOTE 13 - FUND TRANSFERS During the period from 1998 to 2002 the operating fund made several transfers to the building fund so as to provide resources to continue with the building project. These transfers from the operating fund to the building fund were solely for the purpose of providing the resources needed until the capital improvement fund could generate sufficient monies to take over the building project on its own. Due to the fact that the building project is now terminated due to insufficient campaign fundraising, the Board of Directors has designated that the building fund transfer the amounts back that had previously been advanced for the purposes noted above. While the building fund has insufficient funds to make the transfer at this time, the statement of financial position reflects a portion of the development costs and certain other assets held by the building fund that would be considered operating fund assets at the time of a future disposition. The total fund transfers for the period involved totaled $786,556. 3 koiert j J611. 164 AN ACCOUNTANCY CORPORATION 13 La Quinta Arts Foundation Amount 87-88 7,400 88-89 25,000 89-90 37,663 90-91 40,030 91-92 40,109 92-93 50,000 93-94 50,000 94-95 56,596 95-96 50,000 96-97 75,000 97-98 45,000 98-99 80,000 99-00 75,000 00-01 75,000 01-02 75,000 02-03 100,000 03-04 0 Total 861 , /gd ir' -38 COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of a Spring Event to be Hosted by the Cultural Arts Commission on April 24, 2004 RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: v CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The Community Special Events account (#101-3001-451.80-02) has an uncommitted balance of $9,275. Dependent upon City Council action, an amount up to $9,275 could be allocated to the spring event being proposed by the Cultural Arts Commission. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On March 29, 2003, the Cultural Arts Commission ("Commission") hosted "Concert Under the Stars" at the Civic Center Campus. This event included an art show of local artists' works, "Taste of La Quinta" (food samplings from local restaurants), and a concert by the Sidestreet Strutters. The Commission would like to provide "Concert Under the Stars" again this year in conjunction with the Community Picnic. The Commission believes that advertising the event could be maximized by combining it with the Community Picnic, which would permit additional advertising up until the day of the event if the concert were also promoted at the Community Picnic. 166 The event is proposed to be offered at the Civic Center Campus amphitheater. At the January 8, 2004 Cultural Arts Commission meeting, the Commission determined that the art show and "Taste of La Quinta" components offered last year made for too long an event and may have contributed to many people leaving before the concert bcsgan last year. Therefore, the Commission is proposing offering only a concert this year. The Commission had directed staff to contact the Sidestreet Strutters as to their availability on April 24, 2004. The band will be touring the United States and unable to perform at the "Concert Under the Stars" this year. Based upon recommendations by the Commission, staff is researching the availability and cost of the all female Mariachi band that played for the Civic Center Campus dedication. Staff is awaiting confirmation of their availability. Should the City Council approve the spring event, the Commission will provide staff with direction as to their preference for performers. There are additional costs besides performance fees associated with the "Concert Under the Stars" event, such as a portion of the advertising of the event, staff time for set up and clean up after the event, refreshments and rental equipment such as lighting, a sound system, chairs, and other supplies. It is anticipated that the cost of the concert, excluding performance fees, could total $3,500. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize a spring event to be hosted by the Cultural Arts Commission on April 24, 2004 at the Civic Center Campus amphitheater with a maximum budget not to exceed $9,275; or 2. Do not authorize a spring event to be hosted by the Cultural Arts Commission on April 24, 2004 at the Civic Center Campus amphitheater; or 3. Provide staff with alternative direction. Res ectfully ubmitted, V Dodie Horvitz, Co munity Services Director 167 2 Approved for submission by: Thomas P. Genovese, City Manager 168 'q COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of Appointment of Two City Council Members to Serve on the Civic Center Art Purchase Committee RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Appoint two City Council Members to serve on the Civic Center Art Purchase Committee to select Civic Center Art during the La Quinta Arts Festival, and authorize spending up to $7,500. FISCAL IMPLICATIONS: The sum of $7,500 has been budgeted in the Civic Center Art Purchase Account #101-101-703-899. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Since 1989, the City has been selecting artwork from the La Quinta Arts Festival ("Festival") to be displayed at City Hall. Two City Council Members, in conjunction with two Members of the Cultural Arts Commission, will view the artwork at the Festival for consideration of art purchases for City Hall. 'Historically, the Civic Center Art Purchase Committee has met the first day of the Festival to select a piece of artwork for the Civic Center, and the artwork has been delivered to City Hall after the Festival. The following City Council members have participated on the Civic Center Art Purchase Committee: 2003 Mayor Adolph and Council Member Osborne 2002 Mayor John Pena and Council Member Henderson 169 2001 Mayor Pro Tern Sniff and Council Member Adolph 2000 Mayor Pena and Council Member Henderson 1999 Council Members Adolph and Sniff 1998 Mayor Pena and Mayor Pro Tern Henderson 1997 Council Members Adolph and Sniff 1996 Council Members Adolph and Henderson 1995 Council Members Cathcart and Perkins 1994 Mayor Pena and Council Member Sniff The Cultural Arts Commission will select its two representatives at their February 14, 2004 meeting to participate on this year's Civic Center Art Purchase Committee. The Festival will be held from March 18 through March 21, 2004 at the La Quinta Arts Foundation site on Washington Street. The Art Purchase Committee members may wish to meet on Thursday, March 18 at 9:30 for the opening of the Festival and to select an art piece during the opening hours of the Festival. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Appoint two City Council members to serve on the Civic Center Art Purchase Committee to select Civic Center Art during the La Quinta Arts Festival, and authorize spending up to $7,500; or 2. Do not participate in this year's selection of art work for City Hall; or 3. Provide staff with alternative direction. dRespe)tfully submitted, V Dodie Horvitz, eounity Services Director Approved for submission by: Thomas P. Genovese, City Manager S:\CityMgr\STAFF REPORTS ONLY\BS 5Civic Center Art Purchase Committee 02-03-04.doc 170 . , 2 COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of Community Services Grant Requests RECOMMENDATION: As deemed appropriate by the City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: 5 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The Special Project Contingency Account #101-3001-451.80-01 has an uncommitted balance of $1,400 as of this report (Attachment 1). The total amount requested by the various organizations is $5,795. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Organizations are limited to $2,000 in funding requests and cannot receive consecutive year funding. The exception to consecutive year funding is for requests for City facility rental fees by non-profit organizations. Four requests have been submitted for City Council consideration as of this report. 1. Veterans of Foreign Wars, La Quinta Chapter #855 (Attachment 2) The Veterans of Foreign Wars Chapter #855 is requesting $795 in facility use fees associated with the La Quinta Senior Center for a fundraising dinner in conjunction with the La Quinta High School Junior ROTC. The rental request is for Saturday, March 27 from 4:00 - 8:00 PM. Facility fees include a $300 facility deposit, $380 for use fees ($95 per hour), and event insurance coverage in the amount of $1 15. The Veterans of Foreign Wars is requesting a Community Services Grant to offset facility use fees. 171 At the August City Council meeting, the City approved $800 for the Veterans of Foreign Wars, La Quinta Chapter #855, for facility fees associated with monthly meetings at the Senior Center. The City has also funded the Veterans in the amount of $1,125 during Fiscal Years 2001-02 and 2002-03 for rental fees associated with the La Quinta Senior Center. The Veterans of Foreign Wars has a sole purpose of recognizing Veterans of Foreign Wars and remembering the living as well as those who have passed on. The organization holds monthly meetings to provide information to those Veterans who are in need of assistance. 2. La Quinta High School Blackhawk Brigade Boosters (Attachment 3): The Brigade Boosters are requesting funding for $2,000 to assist the spring ensembles, which include the winter drumline, colorguard, and both the concert and jazz bands. The funds will be used to provide equipment and instruments for these ensembles to perform and to continue to expand the program. The City has funded the La Quinta High School Blackhawk Brigade in the amount of $7,320 during Fiscal Year 1996-97 and $2,499 during Fiscal Years 2000-01 and 2001-02. The La Quinta High School Blackhawk Brigade strives to provide a quality, instrumental music education program to the students of the La Quinta High School. 3. La Quinta High School Baseball Boosters (Attachment 4): The La Quinta High School Baseball Boosters is requesting $2,000 in grant funding to provide bleachers for the varsity baseball field. The Baseball Booster's goal is to raise additional funds so the bleachers can be purchased separately without financial impact to the program. The La Quinta High School Baseball Boosters' purpose is to provide a positive influence for student athletes attending La Quinta High School. The City has not funded the La Quinta High School Baseball Boosters in the past. 4. La Quinta High School Counseling Department (Attachment 5): The La Quinta High School Counseling Department is requesting $1,000 in grant funding for the school's annual Career Day. The funds will be used to cover the cost of equipment rentals, decorations and catering supplies. Community professionals are invited to attend the event, where they share job experience and knowledge with high school students. 172 According to the Mission Statement of the La Quinta High School Counseling Department: Students are entitled to receive benefits of a comprehensive, developmental counseling and guidance program, which is designed to provide students with the information and skills necessary to be successful in the diverse, global community of the 21 st Century. Our mission is to support and guide students as they develop into life long learners, who are confident, responsible citizens, with an appreciation of culture, diversity and creativity. The City funded the La Quinta High School Counseling Department in the amount of $1,000 during Fiscal Year 2002-03. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve funding requests of the following organizations: VFW La Quinta Post #855 $ 795 and/or La Quinta High Blackhawk Brigade $ 2,000 and/or La Quinta High School Baseball $ 2,000 and/or La Quinta High School Career Day $ 1,000; or 2. Approve funding requests in different amounts; or 3. Do not approve funding for one or more of the organizations; or 4. Provide staff with alternative direction. Respectfully submitted, Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Information: Project Contingency Account Balance 2. Information: VFW Post #855 3. Information: Blackhawk Brigade Boosters, LQHS 4. Information: Baseball Boosters, LQHS 5. Information: Counseling Department, LQHS 174 ATTACHMENT 1 Community Services Grant Program 101-261-663-000 Fiscal Year 2003-04 Community Service Grants 2003-2004 Beginning Balance 1-Aug-02 5-Aug-03 LQ Arts Assoc Big Brothers/Big Sisters Living Desert VFW Post Monthly Meeting Facility Rental Soroptimists of La Quinta Monthly Meeting Facility Rental Special Olympics JFK Foundation Community Blood Bank American Cancer Society Balance 1017/03 Add: Budget amendment 10/7/03 Subtotal Less: Historial Society allocation, 10/7/03 meeting for museum operations $20,000 $ (2,000.00) $ (1,000.00) $ (1,000.00) $ (800.00) $ (2,000.00) $ (500.00) $ (1,500.00) $ (1,000.00) $ (2,000.00) $8,200 less $5,000 to museum = 3,200 Balance 1 /20/04 Less: adjustment for Historical Society budget, appropriation moved to another account Less: appropriation for Historical Society, 10/7/03 meeting add back: Historical Society allocation, moved to another account Balance, 11/5/2003 Less: Amount approved for Senior Inspiration Awards banquet, Council meeting 12/16/2003 Balance,12/1712003 $ 11,500.00 $ 19,700.00 $ (16,500.00) $ 3,200.00 ok ($11,500) ($5,000) $ 16,500.00 $ 3,200.00 ok $ (1,800.00) $ 1,400.00 Balance03-04 3 ry J 5 VETERANS OF FOREIGN WARS OF THE U.S. AN ORGANIZATION OF VETERANS WHO HAVE FOUGHT AMERICXS FOREIGN WARS ON LAND AND SEA AND IN THE AIR City of La Quints P.O. Box 1504 78-495 Calle Tampico La Quinta, CA 92253 Dear Mayor Adolph and Members of the City Council: ATTACHMENT 2 FROM La Quints Post 855 La Quints, CA 92253 January 5, 2004 La Quinta VFW Post 855, in conjunction with the La Quinta High School Junior Air Force ROTC and the California Cadet Corps, has established a Scholarship Program to benefit outstanding community cadets. To raise funds for this Scholarship. Program, we are planning to hold our Second Annual Spaghetti Dinner on Saturday, March 27, 2004, at the La Quinta Senior Center. This community event will be open to the general public. Dinner will be served from 5:00 to 7:00 PM, with one hour needed before and after for preparation and clean-up. We are projecting an attendance of 150 to 200 dinner guests, with a suggested donation of $5.00 per person. The Senior Center appears to be the only public facility in La Quinta that can reasonably accommodate an event of this size. Volunteer VFW members, wives, cadets and parents will provide and prepare the food, will serve, and will cleanup. We have discussed our plans with Dodie Horvitz of the La Quinta staff and have established that the Senior Center is currently available on this date. However, she has also informed us that the newly adopted fee structure for using the Senior Center for a four hour period would run approximately $380.00 for rental plus approximately $100.00 for general liability insurance. In addition, there is a refundable security deposit required in the amount of $300.00. In 2003, our VFW Post granted $1000 in various Cadet Scholarships. We hope to meet or exceed that amount this year. However, we are concerned that the rental fees, in addition to the cost of food, beverages, rolls, tableware, etc. will seriously erode the anticipated profits that would otherwise fund the Scholarship Program at the projected level. We therefore respectfully request that the City Council take the required action to mitigate all the various fees associated with the use of the La Quinta Senior Center for this charitable event. La Quinta VFW Post 855 is a non-profit Organization. A Community Services Grant Request and a Facility Use Application and Permit have been submitted to the Community Services Department, for your consideration. We trust that the City Council will agree to support this request, so that we can proceed with making our dinner arrangements. TZ! ou; John . Fleck, Commander La ' to VFW Post 855 (760)771-2544 IM 6 VETERANS OF FOREIGN WARS OF THE UNITED STATES OR CITY OF LA QUINTA � APPLICATION FOR COMMUNITY SERVICES GRANT FISCAL YEAR 2003 - 2004 Name of Organization: LA OUINTA VFW POST 855 Amount Requested: IN -KIND SERVICES ONLY USE OF SENIOR CENTER ON 3-27-04 Contact Person: COMMANDER JDUN A El ECK Mailing Address: 48-425 VIA SOLANA City: LA QIJINTA State: CA Zip Code: 99253 Phone No.: (760) 771-2544 501(c)3 Taxpayer I.D. Number: 91-2095974 Date Submitted: JANUARY 6 2004 Applications will receive consideration without discrimination because of race, color, religion, sex, age, national origin or disability. 7 COMMUNITY SERVICES GRANT APPLICATION (Must be typed) 1. What is the overall purpose or goal of your organization? Veterans Patriotic, Fraternal & Service Organization. Serves the needs of an services to U.S.eterans who served in overseas assignments, plus their dependents. Also performs Community Service through Patriotism and participation in local education and Memorial events in La Ouinta ana the Coachella Valley. Support to local Jr. ROTC and California Cadet Corps programs. Sponsor "Voice of Democracy" and"Patriots Pen" Essay Contests at local schools. 2. How long has your organization been in existence? 3 Years 2 Months 3. Describe in general the activities or services of your organization: Inform and educate eligible Veterans concerning available benefits from all levels of Government. Su ort local and regional Patriotic events such as Memorial Day and Veterans Day.Visitation with hospitalized veterans. Sponsor programs at local schools, such as Voice of Democracy and Patriot's Pen Essay Competition. Support LQHS Jr. ROTC and CA Cadet Corps at -local schools. 4. How many people does your organization currently serve? No. of Youth No. of Adults 50 No. of Seniors 95% 5. How many people do you intend to serve during this Fiscal Year? No. of Youth 15 No. of Adults 55 No. of Seniors 95% 6. How many people served this Fiscal Year will be La Quinta residents? No. of Youth 12 No. of Adults 65% No. of Seniors 65% 7. How many paid employees/volunteers does your organization employ? Full time employees NONE Part time employees NONE Volunteers ALL ! 8. Describe how your organization is managed and governed. All VFW Posts are managed and governed in accordance with established Rules, Regulations, Procedures, and By -Laws promulgated by the VFW National and State Headquarters Organizations. 9. Please provide information on your Executive Board members or contact person: Name Title Mr. Jack Fleck Commander Home Address Phone 48-425 Via Solana, L.Q. 771-2544 Mr. Robert Tyler Quartermaster 44-215 Villeta Drive, L.n.345-2116 Mr. Jacques Abels, Judge Advocate, P.O.B. 1416 LA 564-4368 Mr. Joe.Mulleneaux, Trustee 80-105 Vista Grande, L.n. 347-4069 10. What is your annual schedule of events, and during what months does your organization operate? Operation: Year-round Regular Meetings: 1st Wednesday evening of each Month. Other special events - as scheduled: Buddy Poppy Distribution - Memorial Day and Veterans -Day. Scholarship Dinner. 1 1 . Do you charge admission, membership fee, dues, etc.? _Yes No If yes, please describe: Post 855 dues are $30 per year for Annual Members. $19.00 of this goes to pay National, State, and District dues. Life Members pay a one-time initiation fee, the amount of which varies with their age at the time of joining. 12. What are your other sources of revenue for this funding year? Source Amount Distribution of Buddy Poppies: Approximately $1500 annually for the Relief Fund. Scholarship Dinner(s): Approximately $1000 annually for the Scholarship Fund Member donations to the VFW National Home for Children: Approx. $600 annually. Total Needed $ in -Kind only (Sr. Center use fees) Total Received $ Balance $ 9 179 13. Amount of money requested from the City of La Quinta? $ In -kind only (Approximately $480 in fees and insurance for a one-time, four-hour use 14. Foastyheul�rdritt�artion°rbeen ur�hcfecby jRee6it°y oaLaIluirita prZiously? X Yes No 2003-04 If yes, when Fy 2001-02; 2002-03; / Amount received In -kind Use Fees - Sr. Center 15. Please provide the name and address of the bank in which the organization's funds are kept: Downey S & L, La Ointa Branch, 78-435 Highway 111, La (Qinta, CA 92253 16. Please provide the name and title of those individuals authorized to sign on the organization's account (must provide at least two individuals): Name: Title: John G. Fleck Robert T. Tyler Jacques Abels Commander Ouartermaster Judge Advocate 17. Please provide, as an attachment, copies of the last three months bank statements as well as the last year's December bank statement of the organization's checking and savings account. Please see attached Statements dated 10-04-03, 11-04-03, and 12-04-03. 18. Need Statement. Clearly and plainly state the specific, detailed reason or need for the requested funds and how these funds will be used, if awarded. The requested in -kind grant will enable VFW Post 855 to hold a profitable Community Spaghetti Dinner on March 27, 2004, to raise money for the Post's Scholarship Fund. In 2003, the Post awarded Scholarships in the amount of $1000 i(total) to 14 deserving youth -in the community. This year we hope to meet or exceed that amount. Without the requested grant, the payment of Use Fees and Insurance Premium will seriously erode the anticipated profits from this community event. 180 j 19. Goal Statement. Indicate who will benefit from the use of these funds, and how they will benefit. The primary beneficiaries from this Grant will be two (1 male, 1 female) out- standing Senior Cadets from the LOHS Jr. AFROTC program, plus a dozen or so Cadets of all ages from the local California Cadet Corps Brigade. 20. Attach a copy of your Program Operating Budget for the current year. No Operating Budget has been established as yet. 21. Non-profit organizations must attach a copy of the organization's current IRS Form 990. La Ouinta VFW Post 855 operates under'a Master Form 990 granted to the VFW California Headquarters Department in Sacramento, CA. The VFW National Organization was Chartered by the Congress of the United ` States in 1899, as a Non -Profit organization. LA QUINTA BRANCH 78-435 HIGHWAY 111 LA QUINTA CA 92253 PHONE 760-564-6661 VFW LA QUINTA POST 855 44-215 VILLETA DR LA QUINTA CA 92253 DOWNEY SAVINGS STATEMENT DATE 12-04-2003 PREVIOUS STATEMENT DATE 11-04-2003 PAGE 1 Get CASH at a low, low, LOW introductorryy rate! A Rome Zquity Liar of. Credit provides cash for college, hose fix -up, new car for whatever you want. Get the money -saving LOW rate only while our spacial offer lasts. Apply TODAY at a Downey Savings branch, at downeysavings.com. or call your branch at (760) 564-6661. CRSCKING ACCOUNT NUMBER 36-5302929-1 YEAR-TO-DATE INTZR8ST $.00 PREVIOUS STATEMENT BALANCE 11-04-2003................................. $3,176.90 SUMMARY OF TRANSACTIONS ON THIS STATEMENT 3 DEPOSITS AND OTHER CREDITS TOTALING ......................... 727.00 INTEREST PAID THIS STATEMENT PERIOD ......................... .00 6 CHECKS AND 0 OTHER DEBITS TOTALING ........................ 399.00- l,-,,,, ENDING STATEMENT BALANCE..... .................................... ... $3,506.90 DATE POSTED AMOUNT 11-05 23 p0 12 '03 11 5IT r CHECK DATE CHECK DATE j NUMBER PAID AMOUNT NUMBER PAID AMOUNT 36.6 11=13 23.50 369 11 2 250:00 361 11-13 2.5-.00 370 li 2;1 1'8' 36.8: ,1,:13 20+.0.0 37.1 11 �p 6200 * Gap in check sequence 12 nnIr,I'd nn7F7d n LA'QUINTA BRANCH 78-435 HIGHWAY Ill LA QUINTA CA 92253 PHONE 760-564-6661 VFW LA QUINTA POST 855 44-215 VILLETA DR LA QUINTA CA 92253 STA ENT DW SAVINGS 11-04-2003 PREVIOUS STATEMENT DATE 10-04-2003 PAGE 1 Get CASH at } low, low, LOK introductory rate! 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CHECKING ACCOUNT NDDUER 36-5302929-1 YEAR-TO-DATE INTEREST $.00- PREVIOUS STATEMENT BALANCE 10-04-2003................................. $3,446.90 SUMMARY OF TRANSACTIONS ON THIS STATEMENT 1 DEPOSITS AND OTHER CREDITS TOTALING ......................... 32.00 INTEREST PAID THIS STATEMENT PERIOD ......................... .00 3 CHECKS AND 0 OTHER DEBITS TOTALING ......................... -------------- 300.00- ENDING STATEMENT BALANCE ............................................... $3,176.90 DEPOSITS AND OTHER CREDITS DATE DATE POSTED AMOUNT POSTED AMOUNT 10-23 32.00 CHECKS AND OTHER DEBITS CHECK DATE CHECK DATE NUMBER PAID AMOUNT NUMBER PAID AMOUNT _ 1 0:000 ... 36 5 '. _ 364 10-14 100.00 * Gap in check sequence DAILY BALANCE DATE 'AMOUNT DATE AMOUNT . 10-09 3,346.90 10-23 3:,278.90 10-14 3,24.6.90 10-27 3,178..90 Find us on the Web at http://www.downeysavings.com �- `13 WA LA QUINTA BRANCH 76-435 HIGHWAY 111 LA QUINTA CA 92253 PHONE 760-564-6661 VFW LA QUINTA POST 855 44-215 VILLETA DR LA QUINTA CA 92253 DOWNEY SAVINGS STATEMENT DATE 10-04-2003 PREVIOUS STATEMENT DATE 09-04-2003 PAGE 1 Get CASE at a lop, lox, LOW introductory rats! A Ease Equity Line of Credit provides cash for college, home fix -up, new car ... for whatever fau want. Get the money -saving" LOW rate only while our special offer sts. Apply TODAY at a Downey Savings branch, at downeysavings.com or call your branch at (760) 564-6661. ` CHECKING ACCOUNT NUMBER 36-5302929-1 YEAR-TO-DATE INTEREST $.00 PREVIOUS STATEMENT BALANCE 09-04-2003................................. $3,550.23 SUMMARY OF TRANSACTIONS ON THIS STATEMENT 3 DEPOSITS AND OTHER CREDITS TOTALING ............... .......... 236.50 INTEREST PAID THIS STATEMENT PERIOD ......................... .00 4..CHECKS AND 0 OTHER DEBITS TOTALING ........................ 339.83- -------------- ,,,, ENDING STATEMENT BALANCE ............................................... $3,446.90 DEPOSITS AND OTHER CREDITS DATE DATE POSTED AMOUNT POSTED AMOUNT 09-09 64.00 OTHER CREDITS VfW: V:w P..aymnt 09-05 23,040 Vfta :)?.dymnt 09-24 CHECK DATE CHECK DATE NUMBER PAID AMOUNT NUMBER PAID AMOUNT 359 09.;-19 18.50 361 09-22 105.75 360 362 0 5 19.i 25.00: * Gap in check sequence ATTACHMENT 3 I� CITY OF LA QUINTA APPLICATION FOR COMMUNITY SERVICES GRANT FISCAL YEAR. Name of Organization: La Quinta High School Blackhawk Brigade Boosters Amount Requested: $2,000.00 Contact Person: Craig Richardson Mailing Address: 79-689 Calle Grant City: Bermuda Dunes State: CA Zip Code: 92201 Phone No.: (760) 360-2916 501(c)3 Taxpayer I.D. Number: applied for but -not yet obtained Date Submitted: Applications will receive consideration without discrimination because of race, color, religion, sex, age, national origin or disability. COMMUNITY SERVICES GRANT APPLICATION (Must be typed) 1. What is the overall purpose or goal of your organization? To help provide a quality instrumental music education program to the students of La Quinta High School. 2. How long has your organization been in existence? 10 Years Months 3. Describe in general the activities or services of your organization: Fundraising monies to help support the instrumental music department at La Quinta High School; to provide support and assistance in preparing for performances given by the students of the La Quinta High School instrumental music program. 4. How many people does your organization currently serve? No. of Youth 130 No. of Adults -0- No. of Seniors -0- 5. How many people do you intend to serve during this Fiscal Year? No. of Youth 130 No. of Adults -o- No. of Seniors -0- 6. How many people served this Fiscal Year will be La Quinta residents?. No. of Youth 130 No. of Adults -o- No. of Seniors -0 7. How many paid employees/volunteers does your organization employ? Full time employees -o- Part time employees -0- Volunteers 8. Desc�ribe.how your organization is managed and governed. The La Quinta High School Blackhawk Brigade Boosters are governed by a board of five elected officers and six appointed officers. There are bylaws which outline the function of each of these positions and that describe how business is to be conducted. 9. Please provide information on your Executive Board members or contact person: Name Title Home Address Phone Craig Richardson President 79689 Calle Grant 360-2916 or Bermuda Dunes, CA 92201 773-3833 10. What is your annual schedule of events, and during what months does your organization operate? The organization functions year round The Boosters suvnort over sixty performances a year given by various student ensembles of the La Ouinta High School Band and Colorguard - 11. Do you charge admission, membership fee, dues, etc.? Yes x No If yes, please describe: 12. What are your other sources of revenue for this funding year? Source Amount Fundraising $ iT?0a - Student participation fees $20,000,00 Total Needed $ 60 , 000.00 Total Received $ 25 , 000.00 Balance $35,000.00 1,197 13. Amount of money requested from the City of La Quinta? $ 2,000.00 14. Has your organization been funded by the City of La Quinta previously? g Yes No If yes, when spring of 2002 Amount received $2,499.00 15. Please provide the name and address of the bank in which the organization's funds are kept: PFF Bank & Trust, 78752 Highway 111, La Quinta, CA 92253 16. Please provide the name and title of those individuals authorized to sign on the organization's account (must provide at least two individuals): Name: Title: „ Craig Richardson Donna Sanchez Nanci Fuiio President Vice President Secretary 17. Please provide, as an attachment, copies of the last three months bank statements as well as the last year's December bank statement of the organization's checking and savings account. 18. Need Statement. Clearly and plainly state the specific, detailed reason or need for the requested funds and how these funds will be used, if awarded. This grant, if funded, will be used to help support the spring ensembles of the La Quinta High School instrumental music department. These include the winter drumline, the colorguard, the concert bands and the jazz band. The money will be used to help provide equipment and instruments needed for these ensembles to perform as our program continues to grow. 19. Goal Statement. Indicate who will benefit from the use of these funds, and how they will benefit. The 13^ students of the LQHS instrumental music program will benefit from the use of these funds. The mone will provide equipment such as instruments drum heads materials for buildingand construction of pro s, and music. 20. Attach a copy of your Program Operating Budget for the current year. 21. Non-profit organizations must attach a copy of the organization's current IRS Form 9.90. La Quinta High School Blackhawk Bridgade Boosters 2003-04 Budget Income Student Fees $20,000.00 Fundraisers: Car Washes $5,000.00 Discount Card Sales $1,000.00 CD/DVD Sales $1,200.00 Drum a Thon $9,000.00 Spring Spectacular/Gate and Concessions $2,000.00 Program Ad Sales $8,000.00 Cheesecake/Cookies $500.00 Silent Auction $8,000.00 Football Game Concessions/Food Sales $3,000.00 Other Fundraisers and Misc. Donations $1,500.00 Total Fundraisers: $39,200.00 Total Income $59,200.00 Expenses Marching Season: Clinicians $4,000.00 Field Show Set Construction, Materials $4,000.00 Field Show Costumes $2,000.00 Uniforms (including supplies, cleaning, repairs) $2,000.00 Instruments (including purchase, repairs, parts, supplies) $3,500.00 Music (sheet music, arrangements) $2,000.00 Tournament Expenses (transporation, food, etc.) $2,000.00 Total Marching Season: $19,500.00 Ainterquard. Equipment $500.00 Travel Expense (Las Vegas, Hayward, San Diego, Local) $14,000.00 Props $500.00 Clinicians $2,000.00 Costumes and Uniforms $3,000.00 Music $500.00 Total $20,500.00 Drumlin: Tournament Entry Fees $1,000.00 Set and Props . $2,000.00 Travel Expense (Fresno, So. Calif. Venues) $3,000.00 Clinicians $2,000.00 Instruments (including purchase, repairs, parts, supplies) $2,000.00 Costumes & Uniforms $2,000.00 Music (sheet music, arrangements) $1,000.00 Total 1 $13,000.00 20, * La Quinta High School Blackhawk Bridgade Boosters 2003-04 Budget Wind Ensemble, Concert Band, Jazz Band: Uniforms $1,000.00 Clinicians $1,000.00 Instruments (including purchase, repairs, parts, supplies) $2,000.00 Music (sheet music, arrangements) $1,000.00 Travel Expense (So. Calif. Venues) $2,000.00 Total $7,000.00 Total Expenses $60,000.00 Statement of Account 0398109686 LA QUINTA HIGH SCHOOL BAND BOOSTERS PO BOX 1234 LA QUINTA CA 92253 - DIRECT INQUIRIES TO: 888 342 5733 PFF BANK & TRUST 78752 US HIGHWAY 111 LA QUINTA CA 92253 Summary of Account Balance PFF BANK & TRUST October 31, 2003 Days in statement period: 31 Page 1 of5 3 Account Number Ending Balance Community Link Checking 0398109686 $12,257.24 Statement of Account 0398109686 Community Link Checking 0398109686 PFF BANK & TRUST LA Quinta High School Band Boosters Page 2 of 3 October 31, 2003 Low balance Avg collected balance Interest paid year to date $9,432.53 $13,881.00 $12.38 25 Enclosures Date Description Additions Subtractions Balance Number/ Date Amount 09-30 Beginning balance $16,935.02 16,870.25 1891 " 10-20 1595.67 1902 ' 1"1 64.77 -64.77 10-01 Check 1902 . d%7d AC 4C Inn An 4Ond_ t1n-27 110.94 DELUXE CHECK CHECK/ACC. PPD 190E 1 1 1912 10-28 727.29 1913 J 10-28 1 196.56 1914 . 10-27 486.25 1915 J 10-24 338.18 1916 V. 10-20 510.09 1917 10-28 500.00 1920 ' 10-27 39.00 1921 10-31 438.95 1922 YAO-28 217.00 2051 ' J 10-14 300.00 2056 ' .1 10-16 1,122.30 2057V 10-17 155.86 Skip in check sequence Statement of Account 0398109686 PFF BANK & TRUST LA QUINTA HIGH SCHOOL BAND BOOSTERS November 30, 2003 --- PO BOX 1234 Days in statement period: 301 LA QUINTA CA 92253 Page 1 of 3 DIRECT INQUIRIES TO: 888 342 5733 PFF BANK & TRUST 78752 US HIGHWAY 111 LA QUINTA CA 92253 y Summary of Account Balance Account Number Ending Balance Community Link.Checking 0398109686 $10,297.60 �Siatemert Of Account PFF BANK & TRUST 0398i09685 LA Quinta High School Band Boosters Page 2 of 3 November 30, 2003 r,o nmunity Link Checking 0398109686 ;Craw balance $10,296.58 Aug collected balance $12,443.00 Interest paid year to date $13.40 26 Enclosures Date Description Additions Subtractions Balance Number Date Amount 10 257.24 1918 �/ , 11-18 115.00 1927 / 11-13 51.26 192� 11-13 494.25 1929 11-14 106.25 1930 11-25 177.32 1931 V 11-17 516.32 1933 * 1. 11-14 646.36 1934 11-14 681.90 1935 J 11-07 202.56 1936 1 11-10 289.87 1937 11-14 250.00 .nen * I , A,_,a ann nn 1941 4 11-12 t4d2 _ -- /--!1-12 - - - 1 E 50.50 17.00 - - 4a.y� . 17.00 2058 * ✓ 11-14 21.17 * SkiD in check sequence. 195 10 Statement of Account 0398109686 LA QUINTA HIGH SCHOOL BAND BOOSTERS PO BOX 1234 LA QUINTA CA 92253 DIRECT INQUIRIES TO: 888 342 5733 PFF BANK &TRUST 78752 US HIGHWAY 111 LA QUINTA CA 92253 PFF BANK & TRUST December 31', 2003 Days in statement, period: 3.1 (19 ) Page 1 of 2 Summary of Account Balance -- Account Number Ending Balance Community Link Checking 0398109686 $6,715.52 Statement of Account 0398109686 PFF BANK & TRUST LA Quinta High School Band Boosters Page 2 of 2 December 31, 2003 Community Link Checking 0398109686 Low balance $6,714.74 Avg collected balance $9,212.00 Interest paid year to date $14.18 19 E closures Date Description Additions Subtractions Balance Effective dates INTEREST RATE 11-30-03 0.100% Interest for 2003 to be reported to the Internal Revenue Service on your tax return is $14.18 . n Number Date 1903 12-26 Amount 1,250.00 1932 * 12-04 15.74 1938 * 12-05 250.00 1946 * 12-10 67.65 1949 * 12-05 391.18 1950 12-08 70.74 1951 12-05 166.55 1952 12-09 481.00 1953 12-11 43.10 1954 12-05 250.00 1955 12-16 300.00 1956 12-05 250.00 1957 12-05 250.00 1958 12-11 10.00 1a9;a 12-26 188.30 1961 " 12-19 775.4y 1962- - 12-24 401-.20 - 1963 12-24 750.00 1964 12-31 150.00 * Skip in check sequence Statement of Account 0398109686 LA QUINTA HIGH SCHOOL BAND BOOSTERS PO BOX 1234 LA QUINTA CA 92253 DIRECT 1_NQUJRJES TO: _ uGt3 0 r- i .i:, PFF BANK & TRUST 78752 US HIGHWAY 111 LA QUINTA CA 92253 Summary of Account Balance Account Number Ending Balance Community Link Checking 0398109686 $8,742.37 Statement of Account PFF BANS & TRUST 0398109686 LA Quinta High School Band Boosters page2 of 3 Community Link Checking 0398109686 Low balance $8,740.93. Avg collected balance $10,348.00 Interest paid year to date $20.98 17 Enclosures Date Description Additions Subtractions Balance Number Date Amount, 11-30 Beginning balance $10,433.44 1672 12-30 300.00 12-02 Check 1738 :259.00 10,174.44 1725 * 12-03 302.37 12-03 Check 1725 - 02.37 9,872.07 1730 ` 12-19 107.43 12-04 Check 1735 ✓-200.00 9,672.07 1731 12-26 400.00 TLR 451 BR 10 1735 ' 12-n4 2nn nn 12-09 ;Deposit 15.00 10,570.07 12-09 ##Deposit OM0.00 10,890.07 12-09 ##De osit W M0.00 11,370.07 12-16 ##Return Check -NSF -15.007, 11,355.07 12-16 ##Service Charge 5.00v- 11,350.07 RETURN CHECK -NSF 12-16 ##Return Check -NSF 30.00 11,320.07 12-16 ##Service Charge -5.00 11,315.07 RETURN CHECK -NSF 12-19 Check 1730 _--`-107443 11,207.64 12-23 Check 1753 ✓"-38.78 11,168.86 12-23 Check 1747 103.26 11,065.60 12-23 Check 1744 175.00 10,890.60 12-23 Check 1751 200.00 10,690.60 12-23 Check 1752 203.22 10,487.38 12-23 Check 1745 250.00 10,237.38 12-24 Check 1750 245.00 9,992.38 12-26 Check 1742 -28A8 9,963.90 12-26 Check 1754 - 97.97 9,865.99 12-26 Check 1731 400.00 9,465.9OI 12-30 Check 1743 175.00 91290.03 12-30 Check 1746 250.00 9;04fl93 12-30 Check 1672 300.00 81740 93 12-31 ##Interest Credit 4 8,742.37 1745 1746 1747 12-23 250.00 250.00 103.26 12-30 12-23 1750 '. 12-24 245.00 1751 12-23 200.00 1752 12-23 203.22 1753 12-23 38,78 1754 12-26 97.97 "_Skip in check sequence _ ATTACHMENT 4 CITY OF LA QUINTA APPLICATION FOR COMMUNITY SERVICES GRANT FISCAL YEAR. Name of Organization:_ La Quinta High Scho&l.'Wasaball Amount Requested: $2000 00 Contact Person: Linda Held Mailing Address: 78-670 Bradford circle City: T a Quinta State: --CA Zip Code: o� Phone No.: 360-2456 799-8046 501(c13 Taxpayer I.D. Number: 33-0636136 La Quinta High School Date Submitted: January 6, 2004 Applications will receive consideration without discrimination because of race, color, religion, sex, age, national origin or disability. COMMUNITY SERVICES GRANT APPLICATION (Must be typed) 1 . What is the overall purpose or goal of your organization? Assist in a positive influence for the student athletes at La Quinta High School. 2. How long has your organization been in existence? 7 Years Months 3. Describe in general the activities or services of your organization: The LQHS Baseball boosters club is a group of volunteer parents that assist in fundraising for the baseball program at the school. We fundraise for field maintenance, equiptment scholarships, and clinics for our athletes. 4. How many people does your organization currently serve? No. of Youth 50 No. of Adults • 0 No. of Seniors 0 5. How many people do you intend to serve during this Fiscal Year? No. of Youth 50 No. of Adults o No. of Seniors 0 6. How many people served this Fiscal Year will be La Quinta residents? No. of Youth 50 No. of Adults 0 No. of Seniors 0 7. How many paid employees/volunteers does your organization employ? Full time employees 1 Part time employees Volunteers 6 8. Descri�e how your organization is managed and governed. our organization is managed by a board of directors, the head varsity baseball coach and many volunteer parents. We hold board meeting once a month to address all issues concerning the baseball program and how to improve it tor the overail— good of the players and their families. 20 f 9. Please provide information on your Executive Board members or contact person: Name Rhonda Conley Patty Foschi Title Home Address Phone Pres. 80-366 Corte el Dorado Indio 347-44o3 Tres. 79-290 Camino Amarillo LQ 360-79g Betsy Rameriz Bec. 42-150 Sandy Bay BD 345-20,47 10. What is your annual schedule of events, and during what months does your organization operate? Our winter ball program starts in October and goes through January. Our regular high school baseball program begins with try -outs in February with the season starting in March and finishing up in May. We also have a summer league . 11. Do you charge admission, membership fee, dues, etc.? Yes X No If yes, please describe: 12. What are your other sources of revenue for this funding year? Source Amount Ttalian dinner and silent auction 5,000.00 (March) Magazine sales ? New to the progmm Total Needed $--b830-.25 Total Received $ 5000.00 Berger Foundation Balance $ 1 , 330.25 r 2,060 13. Amount of money requested from the City of La Quinta? S -, .25 14. Has your organization been funded by the City of La Quinta previously? Yes _ No x If yes, when Amount received 15. Please provide the name and address of the bank in which the organization's funds are kept: Bank Of America 42-095 Washington st. Palm Desert, CA 92260 16. Please provide the name and title of those individuals authorized to sign on the organization's account (must provide at least two individuals): Name: Title: Rhonda Conley Patty Foschi President Treasurer 17. Please provide, as an attachment, copies of the last three months bank statements as well as the last year's December bank statement of the organization's checking and savings account. 18. Need Statement. Clearly and plainly state the specific, detailed reason or need for the requested funds and how these funds will be used, if awarded. The goal of our club is to provide the varsity baseball field with bleachers.without compromising the other budget needs of the club. Our goal is to fundraise the 6330.25 needed to purchase the bleachers seperately so as not to impact the rest of the program. The Berger.Foundation has given:, $5,000.00 towar s our goal. The funds donated will be designated solely for the purchase of these bleachers. 33 203 19. Goal Statement. Indicate who will benefit from the use of these funds, and how they will benefit. The Pntire baseball team and their parents as w&ll as - visiting teams and their parents would benefit. As it is currently most parents and visitors have no where to sit to watch the game. These will provide seeting as we as s a e. 20. Attach a copy of your Program Operating Budget for the current year. The information &nclosed is out budgettfrom last year. since our season starts in Feb, we re still ,yvo;kinPr on r budget 21. Nop�ofit organizations must attach a copy of the organization s cu ent I� Form 990. The baseball program uses the nonprofit number of the La Quinta High School. We do not have our own nonprofit C M4 d 20n International Baccalaureate Programme November 12, 2003 Dear Mayor Adolph and The La Quinta City Council, I am writing on behalf of the Baseball Club at La Quints, High School. We have 3 levels in our program,rt w Varsity,. Junior Varsity and Freshman baseball, approximately 45 players. These young men are all very active in school activities, they hold at least a 3.0 GPA and many of them are involved in our IB program (International Baccalaureate Program) maintaining a grade point average of 3.75 and above. Unfortunately the current state budget and the budget of the Desert Sands School District have severely affected the sports programs in our schools. During a normal school year the baseball program would receive about $900.00 from the district to run the baseball program, this does not include coaches stipends. This amount is generally only enough to purchase balls for the season. This does not include field maintenance, equipment. maintenance, uniform. purchases, or newly needed equipment. The baseball booster club raises money each year to fund these other necessities. Current Situation The Desert Sands School. District has noted that due .to district and state wide budget cuts the annual amount normally designated to the La Quinta Baseball program will be less this year. Our estimated budget for this years season is about $18,000. This includes desperately needed new Varsity uniforms, maintenance on all equipment, new bats,'maintenanee on batting cages, tournament entry fees, .and health maintenance clinics for all players: Area of Need One of the items that has been in our budget previously is bleachers for the Varsitybaseball field. These have never been purchased due to other areas of need. We are currently looking for individuals, businesses, foundations and service organizations to help fund the purchase of bleachers.. A local business has generously donated all of the concrete needed for the cement foundation and the labor needed will be provided at no cost to the baseball program. The cost of each set of bleachers is $2,365.11 for a total cost LS oR>l. These are aluminum bleachers, with chain link backing and guardrails and comply with all applicable safety codes. This would provide seating for both the home team parents and the visitor parents on the Varsity baseball field. Solution:, It is our intention to fimdraise the money needed for the purchase of the bleachers, separate from our other annual fundraisers, so the money raised in those events goes directly to running the baseball program. We are asking on.behalfthe La Quints, Baseball players for your financial support. This is a tax deductible donation. Upon receipt of your donation a letter will follow with our tax I.D. number for your records. Once the bleachers have been constructed, ted, we will place a plaque on each set of bleachers recognizing your commitment to our baseball program, .we will also place your name on our sponsor board. Thank you for your consideration on this matter, Respectfully Sub :n. Linda 1 1. G Bill GaddParent vo unt La ffiigh Schl Baseball Head Varsity Baseball Coach Questions please call: Linda Held at 360-2456 or Coach Gadd at LQHS 772-4150 Please submit donation to: La Quints High School Baseball Booster Club C/O Linda Held 78-670 Bradford Circle La Quints, CA 92253 35 Desert Sands Unified School District 79-255 Westward Ho Drive • La Quinta, California 92253 (760) 772-4150 Fax (760) 772-4166 • Fax (760) 771-4171 - 205 TOMARK, INC dba Tomark Sports SALES QUOTE P.O. Box 1088 Corona, CA 92878 DM (800)959_,644 INC. Fax: (909) 278-9976 Sales Quote Number: 00018376 Contractors Lic. #493915 Sales Quote Date: 12/18/03 Prices Valid For. DEC 3103 WWW.TOMARK.COM Page: 1 Sell To LA QUINTA HS BASEBALL BOOSTERS Ship To HEIMARK Accounts Payable MATT HELD/ 79-255 WESTWARD HO DR 82851 AVE 45 LA QUINTA, CA 92253 INDIO, CA 92201 Phone: 760-345-8100 Phone: 760-799-0746 C Fax: heldfive@aol.com County: RIVERSIDE Ship Via BEST WAY Customer ID 10931 Terms CASH ON DELIVERY, PERS CHEC Salesperson 044 FOB FACTORY Taken By MW Item/Description Unit Quantity Unit Price Total Price 15330 PREFERRED ALUM. BLEACHER EACH 2 2,550.00 5,100.00 4 ROW X 21' W/CHAINLINK WWW.TOMARK.COM Material: Tax: Labor. Shipping & Handling: Total Due: 5,100.00 395.25 0.00 �.(1Q 6.330.25 33 206 International Baccalaureate Programme January 7, 2004 Dear Mayor and City Council Members, On behalf of the La Quinta High School baseball players, parents, board Members, and coaches I would like to thank you very much for your consideration on funding for bleachers on the varsity baseball field at LQHS. Unfortunately the cost of the bleachers that we would like to purchase has gone up since the last letter that I sent you. From $4,730.22 to $6,330.25. The Berger Foundation has generously given us $5,000.00 towards the purchase of the bleachers leaving a balance of $1,330.25. We would greatly appreciate any funding that the city can provide. Once again thank you very much for your consideration. Sincerely, Linda Held Parent Volunteer La Quints High School Baseball 760-360-2456 3'7 Desert Sands Unified School District 79-255 Westward Ho Drive - La Quinta, California 92253 - (760) 772-4150 Fax (760) 772-4166 - Fax (760) 771-4171 2Uw z003 Your Bank of America Standard Checking 1824 Statement E 0-1 Statement Period: September 25 through October 27, 2003 Account Number: 18244.00434 LQHS BASEBALL BOOSTERS At Your Service Call:760.340.1887 42480 CARACAS BERMUDA DUNES RO CA 92201-3503 Online: www.bankofamerica.com Written Inquiries Bank of America Washington Street PO Box 37176 San Francisco, CA 94137-0001 oaf,. Customer since 1997 Our free Online Banking service allows you to check account ba an s, _ . _ Bank of America appwiata. your...-. "iranafe� funds; pay 6itls ana'more. Enroll at www.bankofamerica.com. business and we enjoy serving you. ❑ Summary of Your Standard Checking Account Beginning Balance an 09/25103 $IZ331.58 Number of 24 Hour Customer Service Calls Self -Service 0 Total Deposits and Other Credits + 1,000.00 Assisted 0 Ending Balance $13,331.58 ❑ Important Information About Your Account Based on the minimum balance you've maintained in this account, your monthly service charge has been waived. ❑ Account Activity Dote Posted Desaipuon RoWunce Number Amount Other Deposits and Credits 10/08 ATM deposit 004676 $1,000.00 ca ATM #SCAD3= (Card #241788074) ❑ ATM Information ' This period, you visited the following ATM locations: Bank of America's ATM Network e #SCAD3892 Bank Of America, Palm Desert, CA 00705n.M.T19 California Page 1 of 1 Z- Your Bank of America Standard Checking 1824 Statement E 0-1 Statement Period: October 28 through November 21, 2003 u, LQHS BASEBALL BOOSTERS 42480 CARACAS RD BERMUDA DUNES CA 92201-3503 Our free Online Banking service allows you to check account balances, transfer funds, pay bills and more. Enroll at www.bankofamerica.corn. Account Number:18244.00434 At Your Service Call: 760.340.1867 Online: www.bankofamerica.com Written Inquiries Bank of America Washington Street PO Box 37176 San Francisco, CA 94137-0001 Customer since 1997 Bank of America appreciates your business and we enjoy serving you. ❑ Summary of Your Standard Checking Account Beginning Balance on 10/28/03 $13,331.58 Number of 24 Hour Customer Service Calls Self-service 0 Ending Balance $13,331.58 Asslsted 0 ❑ Important Information About Your Account Based on the minimum balance you've maintained in this account, your monthly service charge has been waived. ❑ Bank of America News Rising cost of employee benefits got you down? Offer your employees a package of valuable discounted banking accounts and services through Bank of America Group Banking (R). It is available at no cost to you when you use payroll direct deposit. Contact your Bank of America representative for more information. 0071178.001.T18 California 139 Page 1 of 1 2()!A aRecycled Paper 1824 P E 4-2 LQHS BASEBALL BOOSTERS 42480 CARACAS RD BERMUDA DUNES CA 92201-3503 Your Bank of America Standard Checking Statement _ Statement Period: November 22 through December 24, 2003 Account Number. 182.".00434 At Your Service Call: 760.340.1867 Online: www.bankofamerica.com Written Inquiries Bank of America Washington Street PO Box 37176 San Francisco, CA 94137-0001 Customer since 1997 - ' Our 1me•OnilwBanking'service allows•youlo check account -balances; - --Bank---of Am- erica appreciates -your - - transfer funds, pay bills and more. Enroll at www.bankafamerica.com. business and we enjoy serving you. ❑ Summary of Your Standard Checking Account I Beginning Balance on 1112?J03 $13.331.58 1 Total Deposits and Other Credits + 310.00 Total Checks, Withdrawals, Transfers, Account Fees - 1,155.31 Ending Balance $12,486.27 Number of checks paid 4 Number of 24 Hour Customer Service Calls Self -Service 0 Assisted 0 ❑ Important Information About Your Account Based on the minimum balance you've maintained in this account, your monthly service charge has been waived. ❑ Bank of America News We would like to thank you for your business in 2003 and we look forward to serving you in 2004. The beginning of a new year is a good time to contact your Bank of America representative to make sure that you are getting the most out of your banking relationship. We fool: forward to hearing from you and wish you a prosperous year. ❑ Checks Paid Date Paid Number Amount 12/04 595 $178.85 12/10 596 353.96 12/05 597 62.50 Continued on next page 0005581.001.11e California Date Paid Number Amount 12105 59i 525.00 Total of 4 Checks Paid $1,120.31 A Page 1 of 2 2 1 % Recyded N LQHS BASEBALL BOOSTERS Statement Period: November 22 through December 24, 2003 Account Number: 18244-00434 ❑ Account Activity Date Posted Description Reference Number Amount Other Deposits and Credits 12/08 ATM Deposit Correction-Cr-Customer Keying Error, An ATM Deposit from 12/08/03 Has Been Adjusted, 310.00 Was Keyed As 210.00 Fdes Nca 0007663 Nbk73s9 001518 $100.00 210.00 12/08 ATM deposit on 12/06. Bank of America ATM #SCAD3692 (Card #241788074) Total Other Deposits and Credits $310.00 Withdrawals, Transfers and Account Fees $5.00 12/11 Deposited Item Returned Fee 30:00 12/11 Deposited Item Returned Total Withdrawals, Transfers and Account Fees $36.00 n Daily Balance Date Amount Date Amount Date Amount 12/04 $ 13,152.73 12/08 12,875.23 12111 12,486.27 12/05 - 12,565.23 12110 12,521.27 p Bank of America: In Balance To assist you in reconciling your account, we have provided the following summary information. A reconciliation worksheet is printed on the reverse of this page. • Your ending balance from this statement............................................................................................................................$12,486.27 • Subtract other account fees from your checkbook register........................................................................................................ 5.00 ❑ ATM Information This period, you visited the following ATM locations: Bank of America's ATM Network • #SCAD3692 Bank Of America, Palm Desert, CA 41 0005581.002.119 California Page 2 of 2 DIY 1 1 4� Recycled Pal 1824 E 6-2 LQHS BASEBALL BOOSTERS 42480 CARACAS RD BERMUDA DUNES CA 92201-3503 Our free Online Banking service allows you to check account balances, transfer funds, pay bills and more. Enroll at www.bankdfamerica.com. ❑ Summary of Your Standard Checking Account I Beginning Balance on 12/25/02 $11,550.11 I Total Deposits and Other Credits + 2,857.40 Total Checks, Withdrawals, Transfers, Account Fees - 2,556.24 Ending Balance $11,951.27 ❑ Important Information About Your Account Your Bank of America Standard Checking Statement _ Statement Period: . 6ecember 25, 2002 through _ wary 2T, 2003 Account Number: 18244-00434 At Your Service Call: 760.340.1867 Online: www.bankofamerica.com Written Inquiries Bank of America Washington Street PO Box 37176 San Francisco, CA 94137-0001 Customer since 1997 Bank of America appreciates your business and we enjoy serving you. Number of checks paid 5 Number of 24 Hour Customer Service Calls Self -Service 0 Assisted 0 Based on the minimum balance you've maintained in this account, your monthly service charge has been waived. ❑ Deposits Number Date Posted Amount Number gate Posted Amount 01107 $ 282.00 Total of 2 deposits $2,457A0 01/16 2,175.40 ❑ Checks Paid * Gap in check sequence Date Paid Number Amount Date Paid Number Amount 01114 509 $536.06 01/21 512 705.01 01 /09 510 561.00 01/21 * 514 71.12 01/21 511 678.05 Total of 5 Checks Paid $2,551.24 Continued on next .page 000908e.001.119 1 California Page 1 of 2 2 1 ,aRecycled Pe LOHS BASEBALL BOOSTERS Statement Period: December 25, 2002 through January 27, 2003 Account Number: 18244-00434 0 Account Activity Date Posted Description Reference Number Amount Other Deposits and Credits ;400.00 01/16 Check Deposit Adjustment Withdrawals, Transfers and Account Fees $5.00 01/07 check Deposit Adjustment f'7 n.;iw uetnnern Amount Date Amount Date Amount FDate 7 $ 11,827.11 01/14 10,730.05 01/219 — ._ . _ — . 1-1,25641.. - 01J_1.6 - .-- _ _ 1"05.45 _ ._ - _.._. _—.. 0006086.002.119 California Page 2 of 2 z11Ft"d6dPe Register Report i 10/14/02 Through 11/10/03 Page 1 Date Num Description Memo Category Cir Amount 10/14/02 1028102 10/28/02 1028/02 1028102 1028/02 11112/02 11/12002 11112W 11112M2 12202 12r= 125102 12/5/02 1 7103 1/7)03 117/03 1 /7103 120I03 2MM3 2MI03 2/4/03 214/03 214103 2/4103 2MM 214103 214/03 2M/03 2M/03 220103 22M 220103 220103 W0103 2r"3 MM 220/03 3/3103 3/3103 31=3 3/3/03 3/3/03 M 31=3 3=3 3/3103 3M0/03 3M0/03 " 3M0103 3M 0/03 327103 BALANCE 10/13/02 DEP DEP Bank C 500 501 502 503 504 505 506 DEP DEP NSF NSF DEP 507 508 509 DEP DEP DEP Bank C Bank C 510 511 512 513 514 515 516 DEP DEP DEP 517 518 519 620 521 DEP DEP DEP 522 523 524 525 525 527 we 529 630 531 532 DEP 533 534 635 DEP M7JW 5M Bank Correction Cathi Boyd Western Athletic Supply Torrhark Jernion's Sperling Goods Team Sports Void Matt Held Bank O/ America Bank Of America Minva Ojeda For Seven Me... Bank Charge For NO Bank Of America Tomark Western Athletic Supply Swan Deep And Paint Bank Of America Bank Of America Bank Of America Bank Of America Stop Payment Ronda Conley Jemigan"s Sporting Goods Jerniganis Sporting Goods Baseball Crusade Corona Clay Tomark Math Weld Sank Of America Bank Of America Bank Of Ammim Cdhi Boyd ESPN Matt Held Brent Conley Air E*nmWons Bank Of America Flank OfAnwrk:a Bank Of America Le Quints Dodgers Espn Small And Fend Eepn Eerpn knekfa Garcia Ronda Conley Void Ounbse Yellow Mar Swan Design And Print Bank Of America Espn Patty Foac i Gunthers Bank Of Atnerica mist from LQ canaash Wdmart 8 LQ carwssh cash was wrong on dep. of S... baeebaM liclats and party fay... equipment catche m gear bale hats winter stop Pmt. $615.09 Swan ne... weed killer manure wI —1 bellees winterbalfees wintedm i winterbal vrirrlertrai fees wheel chute caps equipment shirts winder Freshman batting helmets bale sodas h... field supplies mound pitchers screen keys for cart viettor bullpen p... fundraising fundralsing Amdrdsing postage for letters fundraiser home depot kimis delivery of day 77 Banners fundraising fimdrahih9 fundraising bats fundraiser BBQ fundraiser fundraiser refund of SW for elh'tft pact.... 880 and Sponsor Board S1... beiht cold been shorts Practice Jersey fundraising fundraiser Mkehaal :and Tommy Shoes 2 earls of uniform paints for V... fundraising CdbK's Cieab Deposit Deposit Bank Charge Misc Merchandise Merchandise Merchandise Merchandise Fold Depc Dqx Net Not r _:��_ �_s,-� A ustmsnt Fee Tourney Fee Mwdhandee Merdhandes Field Field Merchandise Field Deposit Depoa Postage: Subscripiions Fiend Field Berliners Merchandise Subscriptions BBQ Subscriptions Refund MdrehsndtMe Merchandise Merchandise Oeposk Subscriptions Refund Merchandise Deposit RMund R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R 11,724.42 115.00 1,300.00 20.00 -155.42 -467'.11 -331.87 210.00 -387.90 0.00 -20.19 691.00 205.00 -35.00 -5.00 2W-00 -327.69 -505.13 -535.06 2,175.40 400.00 425.00 -5.00 -20.00 -661.00 -678.05 -705.01 750.76 -71.12 -297.71 29.34 1.345.00 2,140.00 680.00 -74.00 -340.00 -57.16 200.00 -942.81 2,240.00 2,025.00 2,909.00 200.00 -120.00 -194.09 -W.00 -40.00 -80.00 256.94 0.00 -W7.87 -135.46 711.90 2,725.00 -30.00 2W.00 -3.210.29 2.6".00 -01.96 4V LQHS Baseball Boosters 11003 Register Report 10/14/02 Through 11/10/03 Page 2 Date Num Description Memo Category Or Amount 327/03 327/03 327/03 327/03 327/03 3/27/03 327ro3 3/27/03 327103 327/03 327/03 327/03 327ro3 3/27/03 3/31/03 3/31/03 4/1/03 4/1/03 411/03 4/1/03 4/1/03 4/5/03 4/5/03 4/5M3 4/5/03 421/03 421103 421/03 421/03 421/03 421/03 5/6/03 5/8103 5/8/03 5/6M3 5/11/03 5111/03 5/11/03 5/11/03 5111/03 5/11/03 5/11103 5/11/03 5/12/03 5/12103 5112103 5/17/03 5117/03 5117103 5117103 5/18/03 5/18/03 5/18/03 5✓18/03 5/18/03 5/18103 5/19/03 5/19/03 5=3 5raM3 522/03 537 538 539 540 541 542 543 544 545 546 547 548 549 550 555 558 DEP 551 552 553 554 557 558 559 580 DEP DEP 581 582 563 564 DEP Bank C 565 568 587 568 569 570 571 572 573 574 DEP DEP 575 576 577 578 579 DEP 580 581 582 583 584 Bank C Bank C DEP 585 588 Peter Ramirez Raul Aguirre Signs By Mel Mink Printing Richard Ortiz Ronda Conley Imelda Garda Indio Florist Air Expressions Swan Design And Print Gunthers Dave Clingenpsel Octavio Gonzales Mark Valdez Gunthers Jernigan's Sporting Goods Bank Of America Patty Foschi Espn Susan Davis Smart And Final Matt Held Team Sports Brandon Jones Angel Zabaiza Bank Of America Bank Of America Ronda Conley Betsy Ramirez James Duke Jack Millard Bank Of America Printing McDowell Awards Air Expressions Ruth Shulby Susan Avis Bobbi Palada Ronda Conley Patty Foschi Gunthers Palm Desert High School Enchants Bank Of America Bank Of America Air Expressions Angel Zabalza Colter Ferguson Garrett Boyd McDowell Award Bank Of America PGA West Espn Dave Cingenpeel Bobbi Patada Void Retumed Check Fee Returned Check Bank Of America Rob Ralph La Quints High School ASB Peters Cleats Stevens Cleats sponsor board Italian Dinner Tickets printing Richard and Robert Cleats Postage Brent C eats Signs ... Johns Cleats wants sponsor board not be... 15 banners @125plus extra... golf shirts pants Adams Cuts spirit pack spirit pack 10 Jackets Coaches Helmets fundraising $25 Red Robin $25 Blockbu... fundraiser Jeremy Cleats Italian Dinner weston cleats hats deals spirit pack fundraising fundraising balloons for dinner cake for dinner angel's deals Kyle's cleats $1000 banners, $600 golf, $... check printing charge plaques for sponsors 2 banners Wes Cleats Kyle Cleats Italian dinner supplies bands for practice 8 gift certificates for coaches ... shorts Palm Desert Tournament Bobbi and Cathy 3 banners plaques for sponsors Banquet fundraiser Bryan Cleats Banquet stuff bounce rbinbird rob & jav Refund Refund Sponsor Board Italian Dinner Refund Refund Refund Refund Banners Merchandise Merchandise Refund Refund Refund Merchandise Merchandise Deposit Refund Subscriptions Refund Italian Dinner Refund Merchandise Refund Refund Deposit Deposit Refund Refund Refund Refund Deposit Expenses Sponsor Plaques Banners Refund Refund Refund Refund Coaches Gifts Merchandise Tourney Fee Board Gifts Deposit Deposit Banners Scholarship Scholarship Scholarship Sponsor Plaques Deposit Banquet Subscriptions Refund Banquet Return Check Return Check Deposit Refund Salary 75.39 -100.00 -215.50 -98.98 200.00 229.57 -100.00 -100.00 -2,101.13 -1,399.67 -99.26 -86.18 -80.00 -90.00 -688.17 -81.89 265.00 -50.00 -10.00 -91.95 -130.00 -100.00 -1,073.19 -98.02 -90.00 2,784.00 2,667.00 -17.22 -44.97 -98.98 -86.98 1,791.00 -42.81 -803.35 269.36 -100.00 -100.00 -153.77 -525.00 -800.00 -132.07 -325.00 AW.00 1,100.00 283.00 -404.06 -5W.00 -300.00 -200,00 -71.44 430.00 -3,012.75 -10.00 -100.00 218.11 0.00 -5.00 20.00 120.00 -185.99 -3,857.58 L.QHS Baseball Boosters 11/3103 Register Report 10/14/02 Through 11/10/03 Page 3 Date Num Description Memo Category Cir Amount 6/12/03 687 Matt Held field stuff Field R -35.74 6/12/03 588 McDowell Awards plaques for sponsors Sponsor Plaques R -219.27 6/13/03 589 McDowell Awards plaques for players Sponsor Plaques R -107.75 6/18/03 590 Linda Held banguet Banquet R -55.55 6/19/03 DEP Bank Of America Beer Hunter Fundraiser Deposit R 4,760.86 8/8/03 591 Rudy Ramirez 4th of July Tourney Tourney Fee R -475.00 8/12/03 592 Baseball Crusade lMd maint and toumey fee Field R -516.59 8/12103 593 Winter Baseball League Play winterbail Tourney Fee R -735.00 9/30/03 DEP Bank Of America Walmart Bonus Grant Deposit 1,000.00 TOTAL 10/14/02-11110103 BALANCE 11/10103 1,807.16 13,331.58 TOTAL INFLOWS 37,512.26 TOTAL OUTFLOWS 35,905.10 NET TOTAL 1,607.16 ?16 ,46 ATTACHMENT 5 CITY OF LA QUINTA APPLICATION FOR COMMUNITY SERVICES GRANT FISCAL YEAR Name of Organization: La Quinta High school Amount Requested: $11000 Contact Person: Ashley Overley Mailing Address: 79=255 Westward Ho Dr. City: La Quints. State: CA Zip Code: 92253 Phone No.: (760) 772-4150 x 2112 501(c)3 Taxpayer I.D. Number: 33-0743985* *We are:::.not a� nen= .rofit, a eTrc '-- P 8 Y��.• snWe �ian-� t have7--a**-Taxoayer".Ib�-.'.:. However, the district qualifies as tax-exempt as it is a governmental Date Submitted: January 7, 2004 educational agency. Applications will receive consideration without discrimination because of race,.color, religion, sex, age, national origin or disability. 2 7 COMMUNITY SERVICE GRANT APPLICATION (must be typed) 1. What is the overall purpose or goal of your grant? The Mission Statement of the La Quinta High School Counselina Department is as follows: All students are entitled to receive the benefits of a comprehensive developmental counseling and guidance groaram which is desianed to provide them with the information and skills necessary to be successful in the diverse and ever changing global community of the 218t century. Our mission is to support and guide our students as they develop into life Iona learners who are confident and responsible citizens with an appreciation of cultural diversity and creativity. Philosophy: • All students have mutual worth and deserve respect. • Students are ultimately accountable of their own decisions and actions • Ethical behavior is essential to our students' health and well-being • Education is a shared responsibility of the entire community • All students are entitled to eaual access of all educational opportunities Every year. La Quinta Hiah School is very pleased to be able to offer our students an opportunity to explore the world of career opportunities. Throuah our annual Career Day, students are able to converse with professionals within our community who offer them experience and knowledge regarding their chosen career. Subseauentiv, every year the La Quinta Hiah School counseling, department must raise funds to sponsor this event. The funds will be used for eauipment rentals, decorations and catering for the various presenters' durina career day. 2. How long has your organization been in existence? 9 Years 2 Months 3. Describe in general the activities or services of your organization: '-A 8 i8 The La Quinta High School Counseling Department provides all studentsservices and supportThese services include academic guidance and support. college and career counseling personal counseling and any other personal or academic needs a student mi ht reauire 4. How many people does your organization serve? No. of Youth 2500 No. of Adults 5000+ 5. How many people do you intend to serve this fiscal year? No. of Youth 3500 No. of Adults 7000+ No. of Seniors n/a No. of Seniors n/a 6. How many people you serve this fiscal year will be La Quinta Residents? No. of Youth 2200 No. of Adults 4400 No. of Seniors n/a 7. How many paid employees/volunteers does your organization employ? No. of Youth No. of Adults 10/201 No. of Seniors n/a * 10 in counseling/201 LQHS ** Number of Adults includes Seniors, as there it no way to estimate which parents are Adults and which are Seniors. 8. Describe how your organization is managed and governed? The LQHS Counseling Department is managed by the La Quinta High School administration and governed by Desert Sands Unified School District and our communities' students and parents. 9. Please provide information on your Executive Board members or contact person: The LQHS Counseling Department is managed by the La Quinta High School administration and oovemed by Desert Sands Unified School District and essentially our communities students and parents. Name Title Home Address Phone Ashley Overiey Counselor 79-255 Westward Ho Dr. 760-772-4150 La Quinta, Ca. 92253 10. What is your annual schedule of events, and during what months does your organization operate? !31ys La Quinta Hiah School's counseling department operates 12 months a year with limited operation in the month of July. Attached you will find a copy of the La Quinta High School Guidance calendar. This calendar is similar from year to year. (Please see attached 11. Do you charge admission, membership fee, dues, etc.? yes X no 12. What are you sources of revenue for this funding year? Sources Amount We have no other sources of fundina for this event as of vet. Total Needed $ 2000.00 Total Received $ 0 Balance $ 2000.00 13. Amount of money requested form the City of La Quinta?$ 1000.00 14. Has you organization been funded by the City of La Quinta Previously? X Yes No 15. Please provide the name and address of the bank in which the organization's fund are kept: Wells Fango Govemment Bankina MAC E2818-114 707 Wilshire Blvd. 11th Floor Los Anaeles. CA 90017 16. Please provide the name and title of those individuals authorized to sign on the organization's account (must provide at least 2 individuals): Name: Title: Matt Buaa Dan O'Grady Princioal A.S.B Advisor 17. Please provide, as an attachment, copies of the last three months bank statements as well as the last year's December bank statement of the organization's checking and saving account. NOT APPLICABLE 18. Need Statement. Clearly and plainly state the specific, detailed reason or need for the requested funds and how these fund will be used, it awarded. Every year, La Quinta High School is very pleased to be able to offer our students an opportunity to explore the world of career opportunities Through our annual Career Day. students are able to converse with professionals within our community who offer them experience and knowledge reaardino their chosen career. By doing this, the students are given yet another tool in to obtaining the necessary skills to become successful professionals: thus positively adding to our rapidly crowing community. Addifionally, being that we are a small community that is growing we are looking to broaden our students' horizons and offer them experiences outside of our community that would be beneficial Subseguently every year the La Quinta High School counseling department must raise funds to sponsor this event The funds will be used for equipment rentals. decorations and catering for the various presenters' during career day. 19. Goal Statement. Indicate who will benefit from the use of these funds, and how they will benefit. Our students will benefit because through the utilization of these funds it our students have the opportunity to explore the world of career opportunities. Students will be able to converse with professionals within our community who offer them experience and knowledge reaardina their chosen career. By doina this, the students are given vet another tool in to obtaining the necessary skills to become successful professionals: thus these funds will not only helpina the student population but is also helping the community by showina our students what role they can play in our rapidly growing community. 20. Attach a copy of your Program Operating Budget for the current year. EVENT BUbciET ATTACHED 51221 21. Non -Profit organizations must attach a copy of the organization's current IRS Form 990. biz 2003-2004 Guidance Calendar La Quinta High School Standing Meetings: District Counselor Meeting (Last Thursday of the Month beginning in October) Faculty Meetings 1 sc Tuesday of the month Department Meetings As Announced Counselor Evening Hours: 2"d and 4"' Wednesday of the Month August: Schedule Parent Conferences with Credit Deficient Juniors and Seniors BEFORE school opens. Schedule new students and resolve schedule conflicts. 19 Counselors Return to Work 20 Orientation and Twilight Tours @6:30 P.M. 21 Orientation 26 27 Make Up Orientation 28 Teacher Prep Day/ Convocation 29 Staff Meeting September: 1 Holiday 2 First Day of School 10-11 Fireside Chats (Administration) 19 Last Day for Student Initiated Program Changes 22 CSU Counselor Conference @ Sequoia Conference Center in Buena Park 23 Junior Group Guidance Lessons (Testing/NCAA) through English Classes 24 Junior Parent Institute @ 6:30 P.M. in Theater October: 2 WASC Visitation 3 Academic Awards Program for 2002-2003 School Year 6 Making High School Count Assembly in Gym 41h Period (Freshmen) 8 Back to School Night @ 6:00 P.M. 10 UC Counselor Conference @ UCR 14 Senior Group Guidance Lessons through English classes 15 Senior Parent Institute @6:30 P.M. in Theater 17 Homecoming Pep Rally (2"d Period) 21 PSAT in Gym at 8:00 A.M. 22 College Night (C.V. Hosts) @ Fullenwider Auditorium 6:00 P.M. 31 End of Is' Quarter 2003-2004 Guidance Calendar November: Senior Evaluations due by November 261h 11 Holiday 12 Freshman Parent Institute @ 6:30 P.M. in Theater 13 Freshman Group Guidance Lesson through English classes 15 PLAN Test 18 Freshman At Risk Program Parent Meeting 6:30 P.M. Staff Lounge 19 ASVAB in Gym 27-28 Thanksgiving Holiday December: Begin Junior Evaluations 2 Academic Field Trip 10 Financial Aid Parent Institute @ 6:30 P.M. in Theater 13 Staff Holiday Party 15 Financial Aid Group Guidance Lesson through Government/Econ classes 22 Winter Break Begins January: Junior Evals due by January 30th 5 School Resumes 16 Winter Sports Pep Rally 19 Martin Luther King Holiday 22-23 Minimum Days for Final Exams 26 Making College Count (Seniors) in Gym 41" period 2"d Semester Begins February: Schedule Middle School Students for next year; dates TBA 4-5 Fireside Chats (Administration) 11 Sophomore Parent Institute 12 Last Day for Student Initiated Program Changes 13-16 Holidays 24 Academic Field Trip 17"' Sophomore Group Guidance Lessons through. English Classes 23-27 C.O.D. Assessments March: 10 Career Day 15 Pre -Registration Information to Juniors;, (English Classes) 16 Pre -Registration Information to Sophomores (English Classes) 23-26 Individual Registration Conferences with Juniors 29-31 9" Grade Registration (Groups) April: 1-2 91h Grade Registration (Groups) 224 2003-2004 Guidance Calendar May: June: 2 Academic Field Trip 5-9 Individual Registration Conferences with Sophomores 19-30 STAR Testing Window 1 Prom 10 Making College Search Count Assembly (Juniors) 4`' Period in Gym 19 Pre Registration of Private School In -coming 91h graders in Faculty Lounge @ 3:00 P.M. 26 Senior Scholarship Night @ 6:30 P.M. in Gym 27 Senior Academic Awards @ 8:00 A.M. in Gym 3 Graduation @ 7:00 P.M. in Stadium 8-9 Minimum Days for Final Exams 9 Last Day of School & Last Counselor Work Day 22V _Desert Sands Unified School District Executive Board Current. Board Members Dr. Doris Wilson Superintendent 760-771-8501 Amy Swan Draper President 760-771-8750 Tine A. Godecke Vice President 760-771-8752 Jim Koedyker Member 760-771-8755 Gary Tomak Member 760-771-8753 Niel D. Lingle Member 760-771--8751 Student Board Members Juan De Jesus Garcia Student Member La Quinta High School Andrea Kao Student Member Palm Desert High School Alfonso Murillo Student Member Amistad High School Krystal Silva Student Member Indio High School 22'f6 Career Day 2004 . Bud - Expense Cost Tables & Chairs $ 400.00 Breakfast $ 300.00 Lunch $1000.00 Supplies $ 300.00 Grand Total $2000.00 ce--ait 4 �' ,Qu,Nrw COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Consideration of Bridge Railing Design Alternatives for the Jefferson Street Bridge Over the Coachella Valley Storm Channel RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve one of the two bridge railing design alternatives for the Jefferson Street Phase II project as presented. FISCAL IMPLICATIONS: e Jefferson Street Phase II bridge railing cost is already included in the project budget. The Coachella Valley Association of Governments has agreed to fund its share of the engineering design and construction cost. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: RBF, the civil engineering firm retained by the County of Riverside, to prepare plans and specifications for the Jefferson Street Phase II project has submitted two bridge railing alternatives for the City Council to consider. The first alternative (Attachment 1) is very similar to the bridge railing installed on the Washington Street/Evacuation Channel Bridge, and the Jefferson Street/Coachella Canal Bridge in recent years. S:\CityMgr\STAFF REPORTS ONLY\2-3-04\BS 10.doc 228 The second alternative (Attachment 2) is an attractive decorative design that offers mountain range images in the concrete work located below the iron railing. Both alternatives have two kinds of lighting worked into the design (Attachment 3). The more obvious lighting is mostly decorative and occurs at the top of the pilasters located on 60-foot centers the entire length of the bridge. This lighting is primarily included for aesthetic effect because it is not bright, nor is it intended to provide beneficial lighting for traffic or pedestrians. Although the colored drawing suggests the translucent lenses in the lantern at the top of pilaster are yellow, the light will actually offer a soft white glow. It was necessary to show the light as yellow on the drawing to distinguish it from the white paper background. The second lighting component in the design is less conspicuous but actually provides the most safety benefit. This component is pedestrian lighting providing low-level lighting recessed into the concrete portion of the bridge railing and occurs at 16-foot centers the entire length of the bridge. It should be noted that both alternatives currently propose natural grey finish for the concrete portion of the bridge railing. The only place where a traditional smooth is proposed is in Concept 1 where it represents the "sky" in the mountain range scene. The balance of the concrete relief work producing the mountain images in Concept 1 consists of three different finishes: fractured rib, medium sandblast, and exposed aggregate. Concept 2 proposes a light sandblast finish. Cost to Construct The standard "Caltrans" bridge railing (which is not listed as an alternative) would cost approximately $222,000. By way of comparison, the Washington Street Bridge over the Coachella Storm Channel (Whitewater) has the standard Caltrans bridge rail. Concept 1 will cost approximately $340,000, and Concept 2 will cost approximately $332,000. Through preliminary discussions with CVAG staff, they have indicated that they would be willing to reimburse the City for the additional cost of the enhanced bridge railings under the existing MOU for the project. Therefore, no Art in Public Places funds would be required for these bridge railings. Although not part of this project, the design of the Washington Street Bridge railing over the Coachella Storm Channel in a theme similar to that of the Washington Street/Evacuation Channel Bridge will be brought to City Council at a future City Council meeting. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve one of the two bridge railing design alternatives for the Jefferson Street Phase II project as presented; or 2 - 2-12 9 S:\CityMgr\STAFF REPORTS ONLY\2-3-04\BS 10.doc 2. Approve one of the two bridge railing design alternatives for the Jefferson Street Phase II project with minor modifications; or 3. Provide staff with alternative direction. Respectfully submitted, r� TZlic thy ona s n, P.E. Wor s Dire for/City Engineer Approved for submission by: l Thomas P. Genovese, City Manager Attachments: 1. Concept 1 2. Concept 2 3. Design Details Common to both Concepts S:\CityMgr\STAFF REPORTS ONLY\2-3-04\BS 10.doc 3 230 ®1 TACHMENT 1 4 231 N 6 TACHMENT 2 s • L z o.00 5 .232 ATTACHMENT 3 COUNCIL/RDA MEETING DATE: February 3, 2003 ITEM TITLE: Consideration of a Request for Proposals (RFP) for Architectural Design Guidelines for Properties within the Regional Commercial Land Use/Zoning District RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 1 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Authorize distribution of a Request for Proposal (RFP) for Architectural Design services for the preparation of architectural design guidelines for properties within the Regional Commercial Land Use/Zoning District. FISCAL IMPLICATIONS: The appropriation of up to $80,000 is contained in the Fiscal Year 2003-2004 budget, for the retention of professional services. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the September 10, 2003 joint meeting between the City Council and Planning Commission, the City Council authorized the creation of architectural design guidelines for the properties within the Regional Commercial Land Use/Zoning District. The RFP will request proposals from architects, planners, or designers to prepare a manual that will establish Design Guidelines for properties along Highway 1 1 1. The Guidelines will include requirements for architectural styles, site planning, circulation, massing and scale, vista preservation, height, colors, size, shape and other design 234 factors. The purpose of the Guidelines is to ensure that growth and change proceed according to a comprehensive vision for the Regional Commercial Land Use/Zoning District as well as to encourage design professionals to think beyond the scope of the project site and achieve a high quality of design. The Guidelines will be compatible and used in concert with the General Plan, Municipal Codes, and existing policies and guidelines (e.g. Highway 111 Landscape Design Theme). The Consultant Selection Process outlined within City Resolution 2003-026 shall be followed. With this report, the City Council is hereby notified of the potential need to contract for professional services in excess of $15,000. Staff proposes the Consultant Selection Committee include the following' members: Mark Weiss, Assistant City Manager Jerry Herman, Community Development Director Oscar W. Orci, Planning Manager FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Authorize distribution of a Request for Proposals for architectural design guidelines for the preparation of architectural design guidelines for properties within the Regional Commercial Land Use/Zoning District; or 2. Do not authorize distribution of a Request for Proposals for architectural design guidelines for the preparation of architectural design guidelines for properties within the Regional Commercial Land Use/Zoning District; or 3. Provide staff with alternative direction. Respectfully submitted, Director Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Request for Proposals 2 235 ATTACHMENT 1 REQUEST FOR PROPOSAL FOR ARCHITECTURAL SERVICES FOR THE REGIONAL COMMERCIAL LAND USE/ ZONING DISTRICT OF THE CITY OF LA QUINTA 3 236 The City of La Quinta request proposals from qualified professional architects, landscape architects, planners, and designers to prepare a design guideline manual for properties located within the Regional Commercial Land Use/Zoning District. Project Description The City of La Quinta proposes to develop design guidelines for its Regional Commercial Land Use/Zoning District in an effort to enhance the opportunity for development. These guidelines will include consideration of architectural standards and criteria for both existing and future buildings, signs, lighting, circulation and other related features. The Guidelines will include requirements for architectural styles, site planning, circulation, massing and scale, vista preservation, height, colors, size, shape and other relevant design factors. These guidelines will be organized into a manual which will assist the City's decision -makers, the landowner, and the developer to better understand the needs and desires related to the development in this area. The proposed project will involve the preparation of a design manual setting forth design guidelines to be applied to existing and future commercial and related development in the Regional Commercial Land Use/Zoning District located along Highway 1 1 1 (see attached map). It is the intent that this project will accomplish the following: 1. Ensure that growth and change proceed according to a comprehensive vision for the Regional Commercial Land Use/Zoning District; 2. Encourage design professionals to think beyond the scope of the project site and achieve a high quality of design; 3. Established design criteria that is consistent with the General Plan, Municipal Codes, and existing policies and guidelines (e.g. Highway 1 1 1 Landscape Design Theme); 4. Develop detailed design criteria that is sensitive to existing development, costs, and local attitudes; 5. Develop design criteria for building design themes, landscapes, circulation (internal and with adjacent developments), sign criteria and other related design factors; PAOscar\Deign GuidelinesWpAoc 4 237 6. Develop suggestions for incorporating existing structures into guidelines. It is expected that the selected firm will assist in determining the format of the document. Innovative ways and means to approach the project are encouraged. It is desirable that this project be completed in a timely and expeditious manner, but should in no event exceed _ weeks from receipt of a Notice to Proceed. Services Requested The City seeks a progressive, creative, and experienced Architectural, Design or Planning firm to prepare the Design Manual as discussed herein above. The following products are expected to be prepared by the successful firm: ➢ The design manual document shall include both text and graphic illustrations of sufficient detail and quality to facilitate easy communication of standards and criteria to users; ➢ Selected graphic material may be required to be in a reproducible form for blueprinting and internet use; ➢ Colored documents for presentation purpose should be included; ➢ Scope of work shall include time for public meetings, including the following: o Architectural and Landscape Committee (one or two meetings); o Planning Commission (one or two meetings); o City Council (one or two meetings); o City Staff, as appropriate; and o Public meetings (as deemed appropriate) ➢ Five (5) screen check copies of all documents shall be provided; ➢ Twenty (20) copies of all draft documents shall be provided; ➢ All data, informational materials, and work produced, including final "camera-ready" text, graphics and maps shall become sole property of the City. PAOscarTeign Guidehnes\rfp.doc 5 238 Qualifications This project will require the services of a multi -disciplinary team of skilled and capable architectural, planning or design professionals. The successful firm shall be expected to demonstrate that it possesses the following qualifications: ➢ Capability to competently manage the described project; ➢ Demonstrate experience of having successfully completed similar projects; ➢ Ability to form a project team consisting of capable architectural professionals with all disciplines needed for the job; ➢ Adequate resources to complete the project in a timely manner; ➢ A high level of commitment to the goals and objectives of the project; ➢ The ability to work in a responsive and cooperative manner with the City and public. The successful firm must demonstrate its ability to effectively deal with the following issues in the performance of its services related to this project: ➢ Establishment of high quality development standards; ➢ Sensitivity to existing buildings; ➢ Consideration of reasonable costs to implement the program; ➢ Sensitivity to unique opportunities, characteristics and vistas found along the Highway 1 1 1 corridor; and ➢ Ability to work with the City decision -makers, Staff, property owners, and the public. The City will be especially interested in the capabilities of the firm, its approach to the services requested, its creative ability and the cost of services in relationship to the approach and the assigned personnel. PAOscar\Deign GuidelinesWp.doc 6 239 Evaluation After all the proposals are received, each will be reviewed and rated by a Proposal Screening Committee. Proposals will be evaluated according to the following criteria: ➢ Reasonableness of costs; ➢ Experiences and resources of firm; ➢ Technical approach; ➢ Understanding of scope of work; ➢ Experience with similar projects; ➢ Ability to meet schedule; and ➢ Familiarity with the area. The proposals will be evaluated according to the above criteria; finalists (approximately three) will be invited to an oral interview. Final selection will be made based upon the results of the oral interview using the same criteria listed above. Submittal All proposals shall be submitted to: Jerry Herman, Community Development Director City of La Quinta Community Development Department P.O. Box 1504 78-495 Calle Tampico La Quinta, CA 92253-1504 All proposals shall be received by the Community Development Department no later than on , 2004. All submittals shall include five (5) copies of the proposal. All proposals submitted shall contain the following minimal information and materials: PA0scar\Deign Guidehnes\rfp.doc 7 240 1. A description and statement of the firm's capabilities, including those of sub -consultants (if any); 2. Names and qualifications of all project team members and their assignments for the project. Those named must be those who will participate in the project if selected; 3. List of references reflecting previous experience in similar projects; 4. Outline of approach and program for all services requested, to include the following: a. Program for Services; b. Time Frame for Completion of Work; c. Minimum Number of Meetings to be Attended; and d. Other Pertinent Information Deemed Appropriate by the Consultant 5. Overall cost for all services requested in this RFP; 6. Samples of prior work on similar projects by the firm and the project team. 241 PA0scar\Deign GuidelinesWPAoc 8 BUSINESS SESSION ITEM: 9 ORDINANCE NO. 399 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING AN AMENDMENT TO THE REDEVELOPMENT PLAN FOR LA QUINTA REDEVELOPMENT PROJECT NO. 2 WHEREAS, the City Council of the City of La Quinta (the "City" or "City Council" as appropriate) approved and adopted the Redevelopment Plan for La Quinta Redevelopment Project No. 2 on May 16, 1989 by Ordinance No. 139, as amended by a technical amendment adopted on December 20, 1994, by Ordinance No. 259, to conform the Plan to the requirements of State law, Assembly Bill 1290, Ch. 942 of Stats. 1993 (collectively, the "Plan"); and WHEREAS, the Plan delineates the boundaries of the redevelopment project for Project No. 2 ("Project Area No. 2"); and WHEREAS, the La Quinta Redevelopment Agency (the "Agency") has initiated proceedings to adopt a proposed amendment to the Plan, the purpose of which Amendment is to increase the number of tax increment dollars which may be allocated to the Agency under the Plan pursuant to Health & Safety Code Section 33679(b) (the "Amendment"); and WHEREAS, the California Community Redevelopment Law (the "CRL") (California Health and Safety Code Section 33000 et seq.) permits the adoption of amendments to redevelopment plans; and WHEREAS, the City Council has received from the Agency the proposed Amendment, a copy of which is on file with the City Clerk, together with the Report of the Agency prepared pursuant to Section 33352 and Section 33457.1 of the CRL (the "Report to City Council"), which includes a description and discussion of the proposed Amendment; and WHEREAS, the Agency has prepared a Negative Declaration for the Amendment in compliance with the California Environmental Quality Act and the City Council has approved such document; and WHEREAS, the Planning Commission of the City of La Quinta has submitted to the City Council its certification that the proposed Amendment conforms to the La Quinta General Plan; and 242 1 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 2 WHEREAS, the City Council and the Agency held a joint public hearing on January 20, 2004, concerning the adoption of the proposed Amendment; and WHEREAS, notice of the joint public hearing was duly and regularly published as required by the CRL and a copy of said notice and affidavit of publication are on file with the City Clerk of the City and Secretary of the Agency; and WHEREAS, copies of the notice of the joint public hearing were mailed by first-class mail to all residents and businesses in Project Area No. 2 at least thirty (30) days prior to the joint public hearing; and WHEREAS, Section 33457.1 of the CRL, provides that to the extent warranted by the proposed Amendment, this Ordinance shall contain the findings required by Section 33367 of the CRL; and WHEREAS, the City Council has considered the Report to City Council for the Amendment, and has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony presented for or against any and all aspects of the Amendment. THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The purpose and intent of the City Council with respect to Amendment is to increase from $400,000,000 to $1,500,000,000 the total number of tax increment dollars which may be allocated from Project Area No. 2 under the Plan to the Agency pursuant to Health and Safety Code Section 33670(b), in order to allow the Agency to undertake and implement projects to continue alleviating blight in the Project Area No. 2 as set forth in the Report to City Council, including but not limited to new affordable housing opportunities so the Agency may meet its affordable housing requirements under the CRL and the Agency's adopted Second Amended Housing Affordability Compliance Plan. SECTION 2. The City Council hereby finds and determines, based on the evidence in the record, including, but not limited to, the Report to City Council, and all documents referenced therein: 243 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 3 a. The finding that the Project Area No. 2 is a blighted area, the redevelopment of which is necessary to effectuate the purposes of the Community Redevelopment Law, was made in Ordinance No. 139 when the Plan was originally adopted. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 2776 is final and conclusive, (ii) the Amendment does not add territory to the Project Area No. 2 or make any other revisions to the Plan that affects this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, (iv) no further finding or determination concerning the blight finding set forth in Ordinance No. 139 is required for the Amendment, and (v) as set fort in the record, including but not limited to the Report to Council, significant blight remains in Project Area No. 2 and such blight cannot be eliminated without the establishment of additional debt and the increase in the number of dollars to be allocated to the Agency. b. The proposed Amendment will allow continued redevelopment to .occur within Project Area No. 2 in conformity with the CRL and in the interests of the public health, safety and welfare. This finding is based in part, as set fort in the record including but not limited to the Report to Council, upon the fact that the Amendment will enable the Agency to fund additional projects to address blighting conditions that remain including but not limited to project to improve, increase, and preserve affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. C. The finding that the carrying out of the Plan is economically sound and feasible was made in Ordinance No. 139 when the Plan was originally adopted and the City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive, (ii) the Amendment does not add territory to the Project Area No. 2 or make any other revisions to the Plan that affects this previously -made finding and determination, and (iii) such previously made finding and determination remains valid and effective. The Plan as amended by the Amendment is economically sound and feasible in that, as set fort in the record, including but not limited to the Report to Council, increasing the number of dollars to be allocated to the Agency under the Plan pursuant to Health and Safety Code Section 33670(b) 244 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 4 will enable the Agency to undertake and implement projects to address the remaining blight in Project Area No. 2 including but not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. d. The Amendment conforms to the La Quinta General Plan including, but not limited to, the Housing Element thereof, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based in part on the finding of the Planning Commission of the City La Quinta that the Amendment conforms to the La Quinta General Plan. e. The carrying out of the Plan as amended by the Amendment, will promote the public peace, health, safety, and welfare of the City of La Quinta and will effectuate the purposes and policies of the CRL. This finding is based in part, as set fort in the record, including but not limited to the Report to Council, on the fact that the Amendment will benefit Project Area No. 2 by continuing to provide the Agency with the necessary financial resources to correct conditions of blight including but not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. f. The City Council, in Ordinance No. 139, found and determined that the condemnation of real property, to the extent provided for in the Plan, is necessary to the execution of the Plan, and adequate provisions have been made for payment for property to be acquired as provided by law. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive, (ii) the Amendment does not add territory to the Project Area No. 2, alter or amend any provision concerning the condemnation of real property, or make any other revisions to the Plan that affects this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing required for the Amendment. 24# Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 5 g. The City Council, in Ordinance No. 139, found and determined that the Agency adopted a feasible method and plan for the relocation of families and persons displaced from Project Area No. 2, if the Plan should result in the temporary or permanent displacement of any occupants of housing facilities in Project Area No. 2. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. h. The City Council, in Ordinance No. 139, found and determined that there are or are being provided in Project Area No. 2, or in other areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of the families and persons displaced from Project Area No. 2, if any, decent, safe, and sanitary dwellings equal in number to the number of and available to the displaced families and persons and reasonably accessible to their places of employment. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. i. The City Council, in Ordinance No. 139, found and determined that families and persons shall not be displaced prior to the adoption of a relocation plan pursuant to California Health and Safety Code Sections 33411 and 33411.1, and dwelling units housing persons and families of low or moderate income, if any, shall not be removed or destroyed prior to the adoption of a replacement housing plan as statutorily required pursuant to California Health and Safety Code Sections 33334.5, 33413, and 33413.5, to the extent required thereunder. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No,. 2 or make any other revisions to the Plan that affect this previously -made 246 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 6 finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. j. The finding that all noncontiguous areas of Project Area No,. 2 are either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of taxes from Project Area No. 2 pursuant to Health and Safety Code Section 33670, was not made in Ordinance No. 139 as there are no non- contiguous areas of Project Area No. 2. The City Council finds and determines .that (i) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect the boundaries of Project Area No. 2 and thus no further finding or determination concerning the foregoing is required for the Amendment. k. The City Council, in Ordinance No. 139, found and determined that the inclusion of any Lands, buildings, or improvements which are not detrimental to the public health, safety, or welfare is necessary for effective redevelopment of Project Area No. 2 and that any area included is necessary for effective redevelopment and is not included for the purpose of obtaining the allocation of tax increment revenues from Project Area No. 2 pursuant to Health and Safety Code Section 33670 without other substantial justification for its inclusion. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. I. The City Council, in Ordinance No. 139, found and determined that the elimination of blight and the redevelopment of Project Area No. 2 could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii► the Amendment does not add territory to Project Area No,. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. 241 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 7 The City Council further finds and determines that, as set fort in the record, including but not limited to the Report to Council, the elimination of the remaining blight in Project Area No. 2 including but not limited to improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan, could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency, and that the increase in the number of dollars to be allocated to the Agency under the Plan pursuant to Health and Safety Code Section 33670(b) is necessary to enable the Agency to provide such aid and assistance. M. The City Council, in Ordinance No. 139, found and determined that the Project Area No. 2 was predominantly urbanized as defined by the CRL. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination or require a re -determination as to the urbanization of Project Area No. 2, (iii) such previously -made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. n. The limitation on the number of dollars to be allocated to the Agency under the Amendment are reasonably related to the proposed projects to be implemented in Project Area No. 2 and/or benefiting Project Area No,. 2 under the CRL, and to the ability of the Agency to eliminate remaining blight within Project Area No. 2, in that, as set fort in the record, including but not limited to the Report to Council, the Amendment is necessary to implement projects to continue efforts to alleviate blighting conditions, including but not limited to, improving, increasing, and preserving affordable housing opportunities to enable the Agency to meet its affordable housing obligations under the CRL and the Agency's adopted Second Amended Affordability Housing Compliance Plan. o. The time limitations set forth in the Plan conform to the requirements of the CRL pursuant to Ordinance No. 259 adopted on December 20, 1994. The Amendment does not amend or affect any time limitation set forth in the Plan. 248 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 8 SECTION 3. The City Council, in Ordinance No. 139, declared that it was satisfied that permanent housing facilities will be available within three (3) years from the time residential occupants of Project Area No. 2 are displaced, if any, and that pending the development of the facilities there will be available to the displaced housing occupants, if any, adequate temporary dwelling facilities at rents comparable to those in the City at the time of their displacement. The City Council finds and determines that (i) such finding and determination set forth in Ordinance No. 139 is final and conclusive; (ii) the Amendment does not add territory to Project Area No. 2 or make any other revisions to the Plan that affect this previously -made finding and determination, (iii) such previously made finding and determination remains valid and effective, and (iv) no further finding or determination concerning the foregoing is required for the Amendment. SECTION 4. In order to implement and facilitate the effectuation of the Plan, as amended by the Amendment as hereby approved, the City Council hereby (a) restates its pledge of cooperation in helping to carry out the Plan, (b) restates its request that the various officials, departments, boards and agencies of the City having administrative responsibilities in Project Area No. 2 likewise cooperate to such end and exercise their respective functions and powers in a manner consistent with the redevelopment of Project Area No. 2, (c) reaffirms that it stands ready to consider and take appropriate action upon proposals and measures designed to effectuate the Plan, and (d) re -declares its intention to undertake and complete any proceeding necessary to be carried out by the City under the provisions of the Plan, as amended. SECTION 5. The Amendment is incorporated herein by this reference, and the Plan, as amended by the Amendment, is hereby approved as, and declared to be, the official Redevelopment Plan for the La Quinta Redevelopment Project No. 2. SECTION 6. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency, whereupon the Agency is vested with the responsibility for carrying out the Plan, as amended. SECTION 7. The City Clerk is hereby directed to record with the Riverside County Recorder a statement that the Amendment has been approved in conformity with the CRL. 249 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 9 SECTION 8. The City Clerk is hereby directed to transmit a copy of the statement to be recorded pursuant to Section 7 of this Ordinance to such other parties as may be directed by the Agency. SECTION 9. This Ordinance shall be in full force and effect thirty (30) days from and after the date of final passage. SECTION 10. If any part of this Ordinance, or Amendment which it approves, is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance or of this Amendment, and the City Council hereby declares it would have passed the remainder of this Ordinance or approved the remainder of the Amendment if such invalid portion thereof had been deleted. SECTION 11. The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. ' PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3►d day of February, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DONALD ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, CMC, City Clerk City of La Quinta, California 4 Ordinance No. 399 Redevelopment Plan Amendment Redevelopment Project No. 2 Adopted: February 3, 2004 Page 10 APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 251 REPORT/INFORMATIONAL ITEM: �5 INVESTMENT ADVISORY BOARD. Meeting December 10, 2003 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 5:30 P.M. by Chairman Lewis, followed by the Pledge of Allegiance. PRESENT: Chairman Lewis and Board Members Moulin, Olander and Deniel ABSENT: Board Member Mahfoud OTHERS PRESENT: John Falconer, Finance Director, Vianka Orrantia, Secretary and Mike Harrison, Conrad & Associates 11 PUBLIC COMMENTS III CONFIRMATION OF AGENDA Mr. Falconer advised the Board that per conversation with Councilman Osborne, all other Commissions currently have business cards and suggested that the Investment Advisory Board obtain them. Chairman Lewis suggested this item be discussed under Board Member items. Board approved. Chairman Lewis requested that an additional item be discussed under Board Member items, presentations by Financial Management Firms. Board approved. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on December 10, 2003 for the Investment Advisory Board. Board Member Deniel advised the Board that on page 3, paragraph 4, 4" sentence should read: The current HTE Software the City owns should interface with Union Bank eustamers systems or with Wells. Fargo Bank eusterners� systems, and this is something that Staff could check into. Mr. Falconer advised the Board that Staff contacted other cities currently utilizing HTE and that the HTE Software does interface with Wells Fargo Banks system. 252 Investment Advisory Board Minutes December 10, 2003 MOTION - It was moved by Board Members Olander/Moulin to approve the Minutes of November 12, 2003 as corrected. Motion carried unanimously. V. BUSINESS SESSION A. Transmittal of Treasury Report for October, . 2003 Chairman Lewis advised the Board that on page 3, under Restrictions, Restrictions to per -issuer limits below: 100%, does not contain actual dollar amounts for Fannie Mae, FHLB, etc ... Mr. Falconer suggested to the Board that the next meeting's Treasurers Report, that Staff could add the $7.5 million per each item. Chairman Lewis also advised the Board that on page 3, the same column, under Restrictions, at the bottom it states to see footnote 1, footnote 1 is not indicated at the bottom of the page. Staff will make sure that the footnote is placed on next months report. Board Member Moulin inquired of Staff, referencing the projected sources of funds on page 5 and in view of the article printed in the local paper regarding the City of Palm Desert, is the City expecting a short fall or if the numbers will have to be reviewed? Mr. Falconer advised the Board that in his opinion the article referenced the City of Rancho Mirage and there were some inaccuracies in the article. Due to the current state budget will be some impacts to cities. Mr. Falconer also advised the Board that in May 2004, the ERAF shift will be $1.2 million. Board Member Olander asked if Staff knew how much it would impact the City's budget. Mr. Falconer advised the Board that vehicle license fees would be impacted around $1.2 million, which would be spread out on a monthly basis, and this impacts the General ' Fund. The budget for the ERAF shift was $4 million; from a cash flow standpoint the City is still within their budget. Mr. Falconer advised the Board that the third issue mentioned in the Desert Sun article, the reduction of sales tax, which said to be cut in half, (which is called a "triple flip"), will not go into affect until July 2004, which is the new fiscal year. He said there seemed to be a misunderstanding in the article. As it currently stands now, sales tax will be reduced in half, with an equal amount of property tax revenue provided to replace lost the half sales tax. This would affect the City's cash flow, as property tax payments are received twice a year and sales tax payments are received each month. The overall effect will not impact the City. 2 253 Investment Advisory Board Minutes December 10, 2003 Mr. Falconer informed the Board that Staff reviewed the City's numbers through October 2003 and the City is at 150% of their revenue budget in building permits, for the first three/four months of the fiscal year. It currently looks as if the City is fine through this fiscal year. The vehicle license fees might be an ongoing issue and could eventually impact the City. Board Member Deniel overviewed for the Board the current hike and reduction of the license fees. Mr. Falconer advised the Board that the Governor rolled back the fees and cut them 73%; currently there is a debate between the Governor's administration and the State Assembly over who will make up the short fall. Mr. Falconer also informed the Board that the Governor would like to sell bonds to raise money to pay the cities back, but the Senate and the Assembly do not want to issue bonds. They feel that all cities will have to bite the bullet just as much as the state. Board Member Moulin informed the Board that the Governor is going to the people with a referendum to get this on the March ballot. General comments were made by the Board regarding the graph created by Staff. It was suggested that a simple line graph be used. MOTION - It was moved by Board Members Moulin/Olander to review, receive and file the Treasurers Report for October 2003. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. City of La auinta FY 03/04 Audited Financial Statements Chairman Lewis introduced Mr. Mike Harrison of Conrad & Associates, presenting the audited financial statement to the Board. Mr. Harrison presented the audited financial statement advising that the purpose of the audit is to ascertain whether the financial statements of the City are in 100 percent compliance. Mr. Harrison advised the Board that he would give them an overview focusing on the area of investments. Mr. Harrison informed the Board that the City Council was addressed in the previous month when the CAFR was completed and reviewed the City's activities for the year. 254 Investment Advisory Board Minutes December 10, 2003 Mr. Harrison advised the Board that part of the audit was to evaluate the internal controls in the investment area. Detailed discussions were held with the individuals involved as to segregation of duties and making sure internal controls; this process is thoroughly documented and determines the strengths and any weaknesses that are in the process. Currently there are no concerns in the area of weakness, as this was evaluated during the audit. Mr. Harrison asked staff whether, due to the City Manager being out on administrative leave, were the same controls currently in place with the .Assistant City Manager, Mark Weiss. Mr. Falconer replied that the policy states that when the City Manager is not present than the Assistant City Manager acts in his place. Mr. Harrison advised the Board that.when controls are evaluated that the auditors look for controls, functions and positions that are in place. It has been indicated what the City Manager' s functions are and in his absence they continue. Mr. Harrison advised the Board that there were no investments sold prior to maturity. The auditors went through and evaluated investment compliance, not only with the investment policy as it was adopted in June of 2002, (which was for 02/03 fiscal year), but also that the policy was in compliance with the government code, and noted that the City policy is more restrictive. The auditors prepare work papers documenting tests completed during the. course of the audit. Cash investments were confirmed 100%, all bank accounts, all investments with LAIF, third party custodians and fiscal agents were verified 100%. As for marking to market, the portfolio and the fiscal agent was "under water" about $22,000, with the rest of the portfolio "above water" about $250,000. Every year the balance sheet date is looked at to determine whether or not market and costs are approximately the same or if there is material difference. Materiality levels for the City, under GASB 34 are determined at the major fund level, which would be the General Fund and five other funds that are identified, and all the other 38 funds are identified under aggregate numbers. If the approximate by $230,000 were "diced", where market value is above where they are being carried at in the financial statements, which is approximately $113 million at June 30, this amount is insignificant to "dice up" based upon the materiality thresholds. Materiality thresholds on the major funds are well above what would have been allocated to rd 255 Investment Advisory Board Minutes December 10, 2003 them. In response to Board Member Deniel, Mr. Harrison informed the Board that the materiality levels on all the major funds were set as to what could be passed on adjustments, and the total that is being discussed is about $230,000 across the whole $113 million. If this was marked to market the amount would be higher, because at June 301' the market value was higher than what was being carried on the books. Mr. Harrison informed the Board that for purposes of recording in the financial statements, in the Investment Policy it does state they have been marked to market and for all materiality purposes they have. If there had been millions of dollar worth of difference, than the auditors. would have asked the City to go back and allocate the unrealized gains or losses, or whatever the situation might have been, to those major funds or the other funds in the aggregate and journal entries would have to take place to the other 45 funds of the City. Board Member Moulin asked the Board referencing page 37 of the Investment Policy, if the first paragraph was changed in the past year to read that the carrying amount difference is significant or material. Mr. Harrison stated to the Board that this was probably changed within the last two years. Board Member Moulin stated to the Board that the second paragraph reads "changes that occur are recognized," which is a little different from the first paragraph which seems inconsistent. Mr. Harrison advised the Board that in paragraph two, what is trying to be said is that you follow the policy within the materiality limits, Mr. Harrison stated that at some point they were asked to change what. is written in paragraph one, which typically is not written. Board Moulin advised the Board that at one point this was an issue with a former board member and that Board Member felt very strongly that this should be mark to market. The Board felt this was not relevant because of the policy "hold to maturity," but obviously in a declining market, there will be a plus and in a rising market there will be a negative. Mr. Harrison advised the Board there should be no problem, that the wording was modified due to a request. Board Member Deniel suggested that the wording in the second paragraph might be changed to read "material changes in fair value that occur are recognized," to comply with the first paragraph. Board Member Moulin reminded the Board that the wording could not be changed at this time. Mr. Harrison stated to the Board that "materiality" affects the whole audit, not just the investments, that this could be possibly inserted throughout, but that as we are trying to stay away from inserting it at all, it should be something in the work papers as opposed to what is in the 5 256 Investment Advisory Board Minutes December 10, 2003 audit report. Board Member Moulin suggested rewording the first paragraph. Chairman Lewis advised the Board that he didn't have a problem with the way the first paragraph is worded, Board Member Deniel concurred. Mr. Harrison stated to the Board that as far as management letter comments, as reported to the City Council last month, there are no reportable conditions of material weaknesses in the City, so there is nothing to report back in terms of investment related comments, and there were no housekeeping comments in the investment area. This does reflect the great amount of attention in this particular area. Mr. Harrison commented to the Board that he reads through the minutes and can see there is a great amount of attention paid to investment compliance. Mr. Harrison also commented to the Board that this probably stems from the Steven Wymer situation, in which the City did incur an investment loss to a certain degree. The City's investment committee is doing more than most cities that have $113 million in their investment portfolio. Conrad and Associates audit 46 cities and out of the 46 cities, two or three of them have Investment Committees; this places the City of La Quinta up on top, because this reflects the attention focused in this area. Mr. Harrison informed the Board that there is a statement on the horizon for the 04/05 investment policy, GASB 40. GASB 40 will change what will go on the cash footnote disclosures. Prior to the upcoming adoption of the new investment policy for fiscal year 04/05, the Treasurer should suggest where the investment policy wording will need to be modified. For the fiscal year 04/05 there will be a lot of disclosures in the financial statements required. Mr. Harrison reviewed for the Board GASB 40, deposit and risk disclosures. This is an amendment of a previous GASB Statement, GASB 3. GASB 3 was following custodial risks, how investments were being held. Over a period of time, it was found that category one and category two were not a real meaningful disclosure anymore, with the history that they had had. What is meaningful is to have investments uncollateralized, (referring to category three), and that this still remains as far as custodial risks are concerned. What objectives and that the new statement is establishing comprehensive disclosure requirements for risk in the investment area, going beyond what GASB 3 did. It will include disclosures requirements for credit risks, including custodial credit risk and Z 257 Investment Advisory Board Minutes December 10, 2003 concentrations of credit risk. It will also include disclosures on interest rate risk and if there is any, foreign currency risk. This will supersede what is in GASB 3, for pension funds, which does not relate to the City of La Quinta and also supersedes a couple of other GASB statements. In general, the disclosure principles are that the City has to organize their investment types, such as treasuries, bonds, commercial paper, etc... The City will not be able to aggregate dissimilar investments in the notes to the statements. As an example, in the City of Anaheim, the investment risk is greater for the stadium which is a major fund, than it was for other funds, and the risk would have to be disclosed in that particular area. So for the City of La Quinta the deposit risks and investment policies relating to this will have to be disclosed, of which a great deal is currently being done now, such as limitations, but there will still need to be modifications made the more that this is reviewed, from the investment policy stand point. Mr. Harrison advised the Board that before entering into the new fiscal year (04/05), any training offered regarding GASB 40 should be taken prior to June. Conrad & Associates will conduct training on GASB 40 in April of 2004. Mr. Harrison advised the Board that the State of California is pretty specific but other states might not be as specific in the government code. GASB 40 states that disclosure is required if the investment policy does not address specific risks. The City's policy currently does address specific risks. As an example, if the government code had a particular bond rating that was required, and the .City was more stringent then the Government Code, than the City would have to be very specific about this. The credit quality rating of investments and debt securities is .going to be required as a disclosure. In response to Mr. Falconer, Mr. Harrison advised the Board that this can be done by aggregating the amount of investments by rating categories. No credit quality disclosures are required for U.S. Government Securities, such as Treasuries and Agencies. Chairman Lewis asked if they differentiate between Agencies and GSE's. Mr. Harrison replied that they did not in the disclosure. Mr. Harrison also advised the Board that the pools will also have to ante up with all the disclosures, such as LAIF. LAIF will have to produce the information so all the local governments that have money in LAIF can put the appropriate disclosure in their own statements. In response to Chairman Lewis, Mr. Harrison advised that Board the for those cities under the $40 million threshold, most put their money in LAIF, so the auditors will have work with putting the disclosures in the statements. Mr. Harrison informed the Board that there is a disclosure 7 258 Investment Advisory Board Minutes December 10, 2003 required if the investment is unrated and should have had a credit quality rating. Board Member Moulin stated that that Investment committee does not really review the custodians, currently most of it is with the Bank of New York. Should the Investment Board be reviewing this more carefully or should this be split between custodians, what is the intent? Mr. Harrison advised the Board that the intent of having a third party custodian is to have the delivery vs. payment setup so you do not have the same person or department that is handling a book of security form. This is meant to be an independent party and the transaction has to go through that independent party. Board Member Moulin asked if the City would be disclosing custodial activities. Mr. Harrison replied not for the third party custodian, only if the City was exposed to custodial credit risk, which it wasn't since it was being handled by a third party custodian. Chairman Lewis reminded the Board that was reason why the Investment Board was created, because at the time there was a custodial risk and there wasn't a third party. Mr. Falconer advised the Board that one of the areas to think about is that some of the bond issues require a certain credit rating for money market funds and staff will have to contact Standard and Poors to make sure the money market funds are at that credit rating. Chairman Lewis advised the Board that some of the funds do not bother to get the rating because there is a cost incurred to obtain a rating. Mr. Falconer advised the Board that this is one item that has to be disclosed. Mr. Harrison asked if some of the money market funds are unrated. Mr. Falconer stated.that the bond indenture requires that certain credit quality for money market funds and the investment policy does not. Mr. Harrison advised that the City would have to disclose whatthe credit quality rating that was required as a part of the bond document. Board Member Deniel requested from staff a copy of the GASB 40 summary. Mr. Harrison stated to the Board that interest rate risk would need to be reported; however, the interest rate risk is managed by weighted average maturity or by specific identification. Mr. Falconer advised the Board that staff would be categorizing the investments by weighted average maturity; currently staff reports the weighted average maturity for the entire portfolio. Mr. Harrison stated there will be notes to the financial statements organizing interest rate risk information by investment type using one of several methods and weighted average maturity is one them. 8 259 Investment Advisory Board. Minutes December 10, 2003 GASB states to use the disclosure method most consistent with the way that you manage the interest rate risk. This is what the City will have to disclose, showing the weighted average maturity by investment type, by one of the methods. Mr. Harrison advised the Board that the important thing for the Board is to "fine tune" the investment policy. Board Member Moulin asked if, due to the fact that the policy was changed in fiscal year 03/04 and due to the Embassy Suites Hotel and SilverRock Ranch activities, from an audit standpoint and disclosure standpoint, would this be covered by any of the material. Mr. Harrison replied to the Board that if this was an investment, that the answer would have to be no. Mr. Harrison advised the Board that there are also disclosures to debt instruments that are highly sensitive to interest rate changes, if there are contract terms that include such terms as multipliers, indexes or reset dates. The effective dates for GASB 40 for periods beginning after June 15, 2004, will be the new upcoming fiscal year. Mr. Harrison stated to the Board that even if Mr. Falconer implemented this in the next fiscal year, he felt that LAW would not early implement, so the City would just have to state that this information was not available. Chairman Lewis suggested that this could be footnoted as preliminary. Mr. Falconer .suggested to the Board that the other option is to continue under the current policy and do a duplicate footnoting of how it would look under the new standards. Mr. Harrison advised the Board. that early application is encouraged. Board Member Moulin asked if there were any proposed audit adjustments. Mr. Harrison replied that the only item was the mark to market, which was passed due to immateriality. Board Member Deniel asked if there were any recommendations for improvement as far as investment process. Mr. Harrison replied that the auditors were satisfied that the internal controls were adequate to safeguard the assets of the City, which is the objective they look for. Due to the limited number of personnel in the Finance Department, they have sound internal controls over wire transfers, segregation of duties, verifications of amounts coming back on execution of trades, approvals from City Manager and what the Treasurer does. Mr. Harrison stated to the Board that the only concern was that the City Manager is out on administrative leave and there is another person that is suppose to be fulfilling the checks and balance E 260 Investment Advisory Board Minutes December 10, 2003 approval process, so it is up to the Treasurer to educate the Acting City Manager of what his responsibilities are with relationship to the checks and balances approval process. Board Member Moulin asked if there were any disagreements with Management for cash and investments. Mr. Harrison stated there were none. Noted and Filed B. Month End Cash Report — November 2003 Noted and Filed C. Pooled Money Investment Board Report - September 2003 VII BOARD MEMBER ITEMS General discussion ensued amongst the Board regarding business cards and it was the consensus of the Board not to purchase them. . Board Member Moulin commended the Audit firm, Conrad and Associates; and also wanted to thank Staff on a job well done. Chairman Lewis suggested to the Board that investment information presentations possibly be scheduled in the month of February. Chairman Lewis stated that he had someone in mind as well as Board Member Deniel. Chairman Lewis suggested that the presentations be 10 to 15 minutes with a 10 to 15 minute question and answer period and that this will be just for. informational purposes. Board Member Olander suggested to the Board that the presenters would submit an executive summary prior to their presentations. Chairman Lewis suggested that the Board meet earlier than the normal scheduled time, of 5:30 and suggested 4:30. Board Member Olander suggested that an invitation to the City Council be made. Mr. Falconer advised the Board that the City has a weekly item of interest memorandum that is sent to the City Council Members, this could be added. Chairman Lewis suggested to the Board that the business items be conducted prior to the presentations. 10 261 Investment Advisory Board Minutes VI11 ' Adjournment December 10, 2003 MOTION - It was moved by Board Members Moulin/Olander to adjourn the meeting at 6:30 p.m. Motion carried unanimously. V 1UnKa UFFUMIn Secretary 11 262 Department Report: _ i- Iry OF T9 TO: The Honorable Mayor and Members of the City Council FROM: Thomas P. Genovese, City Manager" r DATE: February 3, 2004 SUBJECT: Department Report — Response to Public Comment The following public comment was made at the January 20, 2004, City Council meeting: 1. Don Martin introduced Stan Ford as the new General Manager for Coachella Valley Recreation & Park District. • No Council action necessary. 263 DEPARTMENT REPORT: 3 - A FEBRUARY 3 FEBRUARY 7 FEBRUARY 12 FEBRUARY 17 MARCH 2 MARCH 13 MARCH 16 MARCH 18 MARCH 16-21 CITY COUNCIL'S UPCOMING EVENTS CITY COUNCIL MEETING PET SHOW/DOG PARK DEDICATION - FRITZ BURNS PARK 1:00-2:30 P.M. SENIOR CENTER VALENTINE LUNCHEON 11:30 A.M. -1:30 P.M. CITY COUNCIL MEETING CITY COUNCIL MEETING TINY TOT OLYMPICS - FRITZ BURNS PARK 9:30-11:00 A.M. CITY COUNCIL MEETING SENIOR CENTER ST. PATRICK'S LUNCHEON 11:30 A.M. -1:30 P.M. LA QUINTA ART FOUNDATION ARTS FESTIVAL MARCH 26 SENIOR CENTER MULTI -GENERATIONAL TALENT SHOW AND ICE CREAM SOCIAL 7:00 P.M. -10:00 P.M. 2164- , APRIL 6 CITY COUNCIL MEETING APRIL 7 SENIOR CENTER SENIOR SPORTS DAY - BRUNCH - AWARDS CEREMONY 8:00 A.M. -11:30 A.M. APRIL 10 ANNUAL EGG HUNT - LA QUINTA COMMUNITY PARK 9:00 A.M. APRIL 15 SENIOR CENTER VOLUNTEER RECOGNITION LUNCHEON 11:30 A.M. - 2:00 P.M. APRIL 20 CITY COUNCIL MEETING APRIL 24 COMMUNITY PICNIC & BIRTHDAY FRITZ BURNS PARK 10:00 A.M. MAY 4 CITY COUNCIL MEETING MAY 8 LA QUINTA FIRE STATION DEDICATION - 9:00 A.M. MAY 13 SENIOR CENTER HOE-DOWN LUNCHEON/ DESSERT BAKE -OFF COMPETITION 11:30 A.M. -1:30 P.M. MAY 18 CITY COUNCIL MEETING JUNE 1 CITY COUNCIL MEETING JUNE 15 CITY COUNCIL MEETING JUNE 17 SENIOR CENTER SALAD DAYS LUNCHEON 11:30 A.M. -1:30 P.M. 2,65 February 2004 La Quinta City Council Monthly Planner .. i'teariesciay i nursaay Friday Saturday 1 2 3 4 5 6 7 2:00 PM City Council 10:00 AM ALRC 1:00 PM - 2:30 PM Dog Meeting Park Dedication - Fritz Burns Park 8 9 10 11 12 13 14 7:30 AM CVEP-Adolph 7:00 PM Mosquito 9:00 AM RCTC- 12:00 PM Energy/Envi- 10:00 AM Pub. Sfty- Abate. -Perkins Henderson Sniff A* Perkins 7:00 PM Planning 5:30 PM Investment 7:00 PM Cultural Arts 12:00 PM Transp: Commission Advisory Board Commission Valentines Day Perkins 6:00 PM League - Henderson 7:00 PM Com. Serv. Comm. 15 16 17 18 19 20 21 9:00 AM CVA-Henderson 3:00 PM Historic Preser- 2:00 PM City Council vation Commission Meeting President's Day (CITY HALL CLOSED) 22 23 24 25 26 27 28 6:00 PM CVAG-Exec 7:00 PM Planning 12:00 PM CVAG Human/ 9:00 AM LAFCO- Com-Adolph Commission Comm-Osbome Henderson 12:00 PM Sunline-Adolph 4:00 PM DRRA Airp- Osborne 29 January March S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 4 5 6 7 8 9 10 7 8 9 10 11 12 13 11 12 13 14 15 16 17 14 15 16 17 18 19 20 18 19 20 21 22 23 24 21 22 23 24 25 26 27 25 26 27 28 29 30 31 28 29 30 31 Printed by Calendar Creator Plus on 1/28/2004 March 2004 La Quinta City Council Monthly Planner 2 3 4 5 6 2:00 PM City Council 10:00 AM ALRC 12:00 PM Mayors Lunch 9:00 AM - 4:00 PM SJSR Meeting Ntl. Monument - Henderson 7 8 9 10 11 12 13 7:30 AM CVEP-Adolph 7:00 PM Mosquito 9:00 AM RCTC- 12:00 PM Energy/Envi. 9:30 AM - 11:00 AM 10:00 AM Pub. Sfty- Abate. -Perkins Henderson Sniff Tiny Tot Olympics - Perkins 7:00 PM Planning 5:30 PM Investment 7:00 PM Cultural Arts Fritz Burns Park 12:00 PM Transp.- Commission Advisory Board Commission Perkins 3:00 PM Mtns. Con -Sniff 6:00 PM League - Henderson 7:00 PM Corn. Serv. Comm. 14 15 16 17 18 19 20 9:00 AM CVA.Henderson St. Patrick's 3:00 PM Historic Preser- 2:00 PM City Council Day vation Commission Meeting La Duinta Arts Festival 21 22 23 24 25 26 27 7:00 PM Planning 12:00 PM CVAG Human/ 9:00 AM LAFCO- Commission Comm -Osborne Henderson 12:00 PM Sunline-Adolph 1st Day of Spring 4:00 PM DRRA Airp- Osborne La Ouinta Arts Festival 28 29 30 31 6:00 PM CVAG-Exec Com-Adolph February April S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 8 9 10 11 12 13 14 4 5 6 7 8 9 10 15 16 17 18 19 20 21 11 12 13 14 15 16 17 22 23 24 25 26 27 28 18 19 20 21 22 23 24 29 25 26 27 28 29 30 Printed by Calendar Creator Plus on 1 /2R/2nn4 April 2004 La Quinta City Council Monthly Planner ... ..I Ljesaay „ 1 2 3 March May ' S M T W T F S S M TW T F S 1 2 3 4 5 6 1 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 3 4 5 6 7 8 9 10 11 12 13 14 15 21 22 23 24 25 26 27 16 17 18 19 20 21 22 23 24 25 26 27 28 29 28 29 30 31 30 31 4 5 6 7 8 9 10 2:00 PM City Council 10:00 AM ALRC 12:00 PM EnergylEnvi- Meeting Sniff 7:00 PM Cultural Arts Commission 9:00 AM Annual Egg Hunt - La Quinta Community Park 11 12 13 14 15 16 17 7:30 AM CVEP-Adolph 7:00 PM Mosquito 9:00 AM RCTC- 3:00 PM Historic Preser- 10:00 AM Pub. Sfty- Abate. -Perkins Henderson vation Commission Perkins 7:00 PM Planning 5:30 PM Investment 12:00 PM Transp.. Commission Advisory Board Perkins 6:00 PM League - Henderson 7:00 PM Com. Serv. Comm. 18 19 20 21 22 23. 24 9:00 AM CVA-Henderson 9:00 AM LAFCO- 10:00 AM Comrntmity 2:00 PM City Council Henderson Picnic & Birthday - Fritz Meeting Burns Park 25 26 27 28 29 30 6:00 PM CVAG-Exec 7:00 PM Planning 12:00 PM CVAG Human/ Com-Adolph Conmission Comm -Osborne 12:00 PM Sunline-Adolph I 4:00 PM DRRA Airp- Osborne Printed by Calendar Creatnr Phis nn 1 /)R/)nnd COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Public Hearing to Consider Adoption of a Resolution Declaring the Public Interest and Necessity of Acquisition of Property Located at 46-200 Jefferson Street, La Quinta, California (APN 649-090-002), for Jefferson Street Improvements, Phase II, Highway 1 1 1 to Indio Boulevard, Project 2000-19 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: / Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of property located at 46-200 Jefferson Street, La Quinta, APN 649-090-002, for the purpose of improving Jefferson Street. FISCAL IMPLICATIONS: The appraised fair market value of the property proposed for acquisition is $228,000. In addition to that expense, the property owners will be entitled to certain relocation benefits. Additional costs will be incurred in legal fees, appraisal fees and court costs relating to the initiation of eminent domain proceedings if the Resolution is approved and the matter proceeds to court. The proposed Jefferson Street Phase II improvements are funded in accordance with the Reimbursement Agreement and Memorandum of Understanding between the City of La Quinta, the City of Indio, the County of Riverside, and the Coachetla Valley Association of Governments ("CVAG"), as amended. The overall project costs for the Phase II improvements are estimated at $16,700,000. CVAG has agreed to pay 75% of these costs. The remaining 25% will be paid by the jurisdiction in which the improvements are constructed. The City of La Quinta's funding contribution (25% of the project costs within its jurisdiction) is estimated at $2,797,250. Of this amount, the City has been provided a credit in the amount of $963,000 from State Transportation Improvement Program funding obtained by the City to offset the costs of the newly included bridge across the Whitewater River. The City has also been provided a credit in the amount of $1,647,184 as repayment for the regional share advanced by the City for the Washington Street Improvements. The City shall be responsible for repaying any balance of its portion of the proposed improvements minus its credit in the amount of $2,610,184. Considering the City's estimated costs are $2,797,250, the City's out-of-pocket share will be approximately $186,466. However, the City's actual contribution will be calculated based upon the project's final costs. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff proposes, for the City Council's consideration, and recommends approval of, a Resolution of Necessity to authorize acquisition of the property located at 46-175 Jefferson Street, within the city limits of the City of La Quinta. The property is to be utilized for the widening of Jefferson Street, Project 2000-19. This property was appraised by Michael A. Scarcella, MAI, of Capital Realty Analysts. Mr. Scarcella reviewed the applicable market data, identified and analyzed relevant comparable sales, and issued his opinion that, as of the date of value (June 10, 2003), the fair market value of the property was $228,000. A legal description of the property referenced in the proposed acquisition is attached to the Resolution as Exhibit A. Staff obtained title information reflecting the vesting of the property from Chicago Title Company, and an offer to purchase the property for the full amount of the appraised value was sent to the record owners on July 30, 2003. The offer letter transmitted all comparable sales upon which the appraiser based his opinion of value and the relevant parts of his appraisal report. A copy of the offer letter is provided as Attachment 1. Staff, the City's right-of-way consultant (Overland, Pacific & Cutler, Inc.), and the City Attorney have communicated with the owners in an attempt to review any information the owners may have regarding value, and to work towards the goal of reaching an agreement on the transfer of the property by way of a negotiated acquisition. As of the date of this report, no such agreement has been reached. As such, staff is now recommending the City Council consider and adopt a Resolution of Necessity, authorizing acquisition of the property by exercise of eminent domain. Under Code of Civil Procedure Section 1245.220, the City may not commence an eminent domain proceeding until the City Council has adopted a "Resolution of 2 27f Necessity." As a part of the Resolution, the City Council must find and declare each of the following: 1. The public interest and necessity require the proposed project. 2. The proposed project is planned or located in the manner that would be most compatible with the greatest public good and the least private injury. 3. The property described in the Resolution is necessary for the proposed project. 4. An offer meeting the requirements of Government Code Section 7267.2 has been made to the owner of record. The owners of the property are entitled to be heard on this subject, and on the issue of whether the City has followed all other procedures and is 'otherwise authorized to acquire the property by exercise of eminent domain. Notice to the property owners of this Resolution of Necessity hearing, and the subjects to be considered and proposed to be determined, was sent to the record owners on December 29, 2003. A copy of this notice is provided as Attachment 2. As of this date, the City has received no response from the property owners relating to this hearing. The Public Interest and Necessity Require the Proposed Project The acquisition of the property is proposed for the Jefferson Street Improvement Project, Phase II, Highway 111 to Indio Boulevard. The project will include the widening of Jefferson Street from two lanes to a six -lane, arterial highway, with a typical 120' cross-section. A diagram showing the extent of the project is submitted herewith as Attachment 3. Staff believes that the public interest and necessity require the Jefferson Street Improvement project. A traffic analysis was conducted by Mr. Robert Ross, P.E., of RBF Consulting, a copy of which is included as Appendix 8.1 of the 1999 Initial Study/Mitigated Negative Declaration for the project, which is being transmitted to the City Council under separate cover. Pursuant to the Coachella Valley Area Transportation Study, the Valley is one of the fastest growing areas in Southern California, and is expected to increase to over 312,000 by the year 2010. The project is necessary to accommodate the projected growth and population increase and to accommodate safe traffic movements. Staff concurs with Mr. Ross' assessment. The Proposed Project Is Planned Or Located In The Manner That Will Be Most Compatible With The Greatest Public Good And The Least Private Injury 3 271 The improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway, providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The widening of Jefferson Street is designed to relieve regional traffic congestion and improve the capacity of the street, which will require continuity in the roadway alignment and traffic handling capacity of the street. The project also improves an important linkage to Highway 1 1 1 and the 1-10 for existing and proposed residential, commercial and resort uses in La Quinta and Indio. The project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including enhanced safety during flood events. In addition, the bridge will provide additional opportunities for wildlife movement and habitat access. The project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from the roadway. On January 22, 2003, the City received a petition signed by many of the affected property owners, including the owners of the property which is the subject of this public hearing. The petition was in support of the chosen alignment. The persons signing the petition indicated that they preferred to have the symmetrical widening of the roadway, and that they "prefer[ed] to have their homes and lots purchased by the City under Eminent Domain." A copy of the petition is provided as Attachment 4. These facts support the finding that the project is designed in a manner compatible with the greatest public good and the least private injury. The Property Described In The Resolution Is Necessary For The Proposed Project As is shown on Attachment 5, the proposed widening of Jefferson Street would require that the right-of-way extend right up to the single-family home on the subject property. It would not be practical or safe to widen Jefferson Street without acquiring the subject property and demolishing the home. Acquiring the property is therefore necessary for the project to proceed. Other Requirements The project has been reviewed and approved under the California Environmental Quality Act ("CEQA"). Originally, the project was reviewed in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66. On August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information 4 272 about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements. On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code. In considering the Resolution of Necessity, the City Council should consider the environmental information contained in the Addendum, along with information in the 1999 IS/M'ND. Both documents have been distributed to the City Council under separate cover. In addition, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003- 059 reflecting such findings. A copy of that Resolution is provided as Attachment 6. Lastly, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development as required by law. Therefore, all of the legal prerequisites to the adoption of a Resolution of Necessity have been satisfied. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-200 Jefferson Street, La Quinta, APN 649-090-002, for the purpose of improving Jefferson Street; or 2. Conduct a public hearing and do not adopt of a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 5 273 46-200 Jefferson Street, La Quinta, APN 649-090-002, for the purpose of improving Jefferson Street; or 3. Provide staff with alternative direction. Respectfully submitted, 4imtothy . J na n, P.E. Public W&W Director/City Engineer Approved for submission by: KII lxr�� Thomas P. Genovese, City Manager Attachments: 1. Offer letter 2. Notice of Resolution of Necessity Hearing dated December 29, 2003 3. Project Diagram 4. Petition of Jefferson Street homeowners dated January 22, 2003 5. Property Area Map 6. Planning Commission Resolution No. 2003-059 C.1 274 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-200 JEFFERSON STREET, LA QUINTA, CALIFORNIA (APN 649-090-002) FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, PROJECT 2000-19 WHEREAS, the City of La Quinta has been investigating potential acquisition of property located at 46-200 Jefferson Street, in the City of La Quinta, bearing Riverside County Assessor Parcel No. 649-090-002, and more specifically described in the legal description attached hereto as Exhibit "A," which is incorporated herein by reference ("Property"); and WHEREAS, the City has been investigating potential acquisition of this Property for the widening of Jefferson Street, specifically the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 ("Project"); and WHEREAS, on February 3, 2004, after no less than 15 days written notice to the record owners of the Property, as shown on the title information obtained by the City, and the last equalized assessment roll, the City Council of the City of La Quinta held a public hearing for the purpose of considering, and allowing the record owners of the Property a reasonable opportunity to appear and be heard on, all of the following matters: A. Whether the public interest and necessity require the Project; B. Whether the Project is planned or located in a manner that is most compatible with the greatest public good and the least private injury; C. Whether the Property proposed to be acquired is necessary for the Project; D. Whether the offer required by Government Code § 7267.2 has been made; and E. Whether the City has properly exercised all of its statutory responsibilities and duties antecedent to the legal exercise of eminent domain against the Property; and 119/015610-0008 7 275 471137.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 2 WHEREAS, the City Council has received various factual information bearing upon each of the matters referenced above, including but not limited to, the representations made within, and evidence attached to, the staff report prepared by staff for consideration in connection with the hearing; and WHEREAS, the City Council, as a result of such hearing, has determined that the public health, safety, and welfare require that the City acquire fee interest in the Property for the purposes of the widening of Jefferson Street; and WHEREAS, the Project was originally reviewed and approved under the California Environmental Quality Act ("CEQA") in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031'046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66; and WHEREAS, on August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements; and WHEREAS, on August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code; and WHEREAS, in considering the Resolution of Necessity, the City Council has considered the environmental information contained in the Addendum, along with information in the 1999 IS/MND; and WHEREAS, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003-059 reflecting such findings. WHEREAS, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by 119/015610-0008 $ ►`1 471137.01 a01/28/04 7 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 3 Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development. WHEREAS, the City of La Quinta is authorized to acquire the Property for street improvement purposes under the authority of its own charter, and under the authority granted by Government Code Sections 37350.5 and 40404. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. The recitals set forth correct are true and correct and are adopted as the findings of the City Council. 2. The Project for which the acquisition of the Property is required is the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard Project. The project will include the widening of Jefferson Street from two lanes generally to a six -lane, arterial highway, with a typical 120' cross-section. 3. The Property to be acquired is located within the City of La Quinta, County of Riverside, State of California, located at 46-200 Jefferson Street, in the City of La Quinta, bearing Assessor Parcel No. 649-090-002. The Property the City seeks to acquire consists of fee simple title to approximately 7,841 square feet of land, more specifically described in the legal description attached hereto as Exhibit "A". 4. The public interest and necessity require the Project, in that it is consistent with the City's General Plan, and specifically the City's Circulation Element. The City Council hereby adopts the finding set forth in Planning Commission Resolution 2003-059. Pursuant to the Coachella Valley Area Transportation Study, the Valley's population is one of the fastest growing areas in Southern California and expected to increase. This project is necessary to accommodate the projected growth and population increase and accommodate safe traffic movements. 5. The Project is located in a manner most compatible with the greatest public good and the least private injury, in that the improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The proposed Project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including during flood events, and providing additional opportunities for wildlife movement and habitat access. The proposed Project will result in the least private injury because the 119/015610-0008 9 2 471137.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 4 right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from roadway construction and operation of habitable structures. The Project is designed in a manner compatible with the greatest public good in that the Project will involve road widening so as to improve an important link between Highway 1 1 1 and 1-10. 6. The Property to be acquired is necessary for the Project, in that the Project is designed to relieve regional traffic congestion and improve the capacity of the street which will require continuity in the roadway alignment and traffic handling capacity of the streets. 7. Portions of the Property sought to be acquired include area outside of the proposed alignment of the Project's proposed roadway and public right-of-way improvements. Pursuant to Code of Civil Procedure sections 1240.410, the City Council finds that such property will be left in such size, shape, or condition to be of little market value, and this constitutes a remnant whose acquisition is authorized under the above -referenced statute. This remnant finding is supported by a petition submitted to the City through the course of project planning, requesting selection of the project design alternative which resulted in full acquisitions as currently planned for the Project. 8. The offer required by Government Code Section 7267.2 has been made to the owner of record, by way of a letter dated July 29, 2003. City staff has attempted to negotiate with the record owners and their representatives subsequent to the issuance of this offer, but the negotiations have not proved successful in securing the necessary property interests. 9. Notice of the resolution of necessity hearing was provided to the owners of record by way of mailed, written notice sent on December 29, 2003. 10. To the extent any of the Property to be taken herein is devoted to a public use, the City finds that the proposed use for the Property is compatible with, or more necessary to, such public use, and that the City is authorized to acquire the Property pursuant to Code of Civil Procedure Section 1240.510 and 1240.610. 11. The City Council hereby declares its intent to acquire fee simple ownership of the Property, more specifically described in Exhibit "A" hereto, in the City's name in accordance with the provisions of the laws of the State of California. 12. The Project has been reviewed and approved under CEQA through the 1999 IS/MND and the Addendum thereto. The City finds that as reflected in the 119/015610-0008 471137.01 a01/28/04 10 278 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 5 Addendum, that there have been no subsequent changes with respect to the circumstances under which the Project is to be undertaken, no new information of substantial importance regarding significant effects or mitigation measures or alternatives which has become available, and no subsequent changes have been proposed in the Project which would require further environmental review. 13. The law firm of Rutan & Tucker, LLP, City Attorney for the City of La Quinta ("City Attorney"), is hereby authorized and directed to prepare and prosecute in the name of the City such proceedings in a court having proper jurisdiction thereof, as may be necessary for the acquisition of the Property described herein, including without limitation, seeking prejudgment possession of such Property, and to prepare and file such pleadings, documents, and otherwise prosecute such actions as may be necessary in the opinion of the City Attorney to acquire the Property for the City. Such attorneys are specifically authorized to take whatever steps and/or procedures as are available to them under the Eminent Domain Law of the State of California, relating to acquisition of the Property. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3rd day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD 0. ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: 273 119/015610-0008 1 1 471137.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 6 M. KATHERINE JENSON, City Attorney City of La Quinta, California 119/015610-0008 12 2 S O 471137.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 7 EXHIBIT "A" The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 38 Of Tract 2190, As Per Map Recorded In Book 41, Pages 55 Thru 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-090-002 119/015610-0008 13 y,� 471137.01 a01/28/04 ' 281 1 • • ATTACHMENT 1 P.O. Box 1504 78-495 CALLS TAMPICO LA QUINTA, CALIFORNIA 92253 July 29, 2003 CERTIFIED MAII, RETURN RECEIPT REQUESTED Ms. Elaine Culp and Robert Culp 46200 Jefferson Street La Quinta, California 92253 (760) 777-7000 FAX (760) 777-7101 Re: Offer to Acquire Property Located at 46200 Jefferson Street, Riverside County Assessor Parcel No APN 649-090-002 Dear Ms. Culp and Mr. Loris: The City of La Quinta (the "City") is proposing the construction of a widening and improvement of Jefferson Street, within the City. The City understands you are the vested owners of the above -referenced property. The City seeks to acquire the fee simple interest in the property, more particularly described as 46200 Jefferson Street, Riverside County Assessor Parcel No. APN 649-090-002 as shown on map attached hereto as Attachment "A", which is made part of this offer by reference (the "Property'). This letter contains an offer by the City to acquire the Property, and the terms and conditions on which it proposes to do so. No final determination has been made at this point by the City as to the ownership of the Property. The City is in the process of securing information from a title company which will assist in determining exactly who the current owners are, and what other persons or entities may have lease, financing, or other interests in the property. Any acceptance of this offer is contingent upon your presentation to the City of conclusive evidence that all parties with interests in the Property (including, but not limited to, lessees, licensees, lienholders, etc.) have accepted this offer, and agreed on how the proceeds for the acquisition of the Property shall be distributed. The City had the Property appraised to determine its fair market value. The appraisal was conducted by Mr. Michael Scarcella, MAI, of Capital Realty Analysts, in accordance with commonly accepted appraisal standards, and included consideration of the highest and best use of the land. Mr. Scarcella previously corresponded with you, offering to meet with you on his inspection of the Property, and inviting you to provide information regarding the Property. Based on the appraisal, the City offers to purchase the Property (free and clear of any 2 8;��q -- 119/015610-0008 419373.01 a07/29/03 14 Ms. Elaine Culp July 29, 2003 Page 2 encumbrances to title such as liens, leases, licenses, or other interests which, in the City's discretion, are unacceptable) for TWO HUNDRED TWENTY EIGHT THOUSAND DOLLARS ($228,000.00) (the "Purchase Price"). The basis for this offer is explained more thoroughly in Attachment B of this letter. Attachment `B" is a copy of the appraisal report prepared by Mr. Scarcella, containing the data and pertinent discussion relative to how he determined the fair market value of the Property. It is made a part of this offer by. reference. This offer is for conveyance to the City of a fee interest in the Property, excluding any oil, gas, or mineral rights below the depth of 500 feet, and subject to terms and conditions set out below. Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes, except: 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue of Taxation Code, if unpaid at the time escrow closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property, as determined by the City; 3. Easements of rights -of -way over the land for public or quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report or litigation guarantee, which are accepted by the City in writing through escrow. It shall be your responsibility to convey clear title, and to pay any fees or charges by lenders or other parties in obtaining reconveyances or other items necessary to convey clear title. As a condition of this offer, the City reserves all rights and remedies it may have against you, and all prior owners, to seek damages or other remedies in connection with any remediation or other obligation the City incurs as a result of any contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. Sub -Section 9601 et seq.), the Hazardous Waste Control Law, California Health & Safety Code (Section 25100, et seq.) the Porter Cologne Act (California Water Code Section 13000 et seq.) California Health & Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. In addition, any final transfer of the property, and payment of the purchase price, will be conditioned on the City's filing of a Notice of Determination with the County Clerk approving an Addendum to the Initial Study/Mitigation Negative Declaration for the Jefferson Street Improvements, at least thirty-five (35) days prior to close, and no judicial or administrative challenges having been presented or filed against the findings made therein as of the date of closing. The City will pay all escrow and recording fees incurred in the purchase of the Property, and if title insurance is obtained, the premium charge for such title insurance. 119/015610-0008 1 G 283 419373.01 a07/29/03 J Ms. Elaine Culp July 29, 2003 Page 3 Please be advised that the amount paid to you pursuant to this offer, if it is accepted, may be eligible for favorable tax treatment under Internal Revenue Code Section 1033, relating to acquisitions under. "threat of condemnation," providing you purchase qualified replacement property within the time periods set forth under law. The IRS has literature explaining the details of this favorable tax treatment, which you may wish to consult. In addition, Section 2(a) of Article XIIIA of the California Constitution and Section 68 of the California Revenue and Taxation Code generally provide that property tax relief. shall be granted to any real property owner who acquires comparable replacement property after having been displaced. by governmental acquisition or eminent domain proceedings. The State Board of Equalization has prepared guidelines on those matters, which you also may wish to consult. Please contact our relocation consultants, Bob Stoddard or Kathy Woolley, at (760) 772-4255, if you would like any assistance in obtaining materials from the IRS or the State Board of Equalization on these matters. Please note that effective August 1, 2003, the new telephone number for these consultants will be (760) 776-1238. In addition to the compensation for the fair market value of the property, you may also be entitled to relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title.25), or local relocation guidelines. Relocation assistance is not apart of this offer. If you would like to inquire further regarding your eligibility for relocation assistance, please contact Bob Stoddard or Kathy Woolley, at the number listed above. Please be advised that California Code of Civil Procedure Section 1263.510 allows a party whose property is subject to public acquisition to claim compensation for loss of business goodwill. The Property does not appear to be the site of any presently operating business. As such, this offer does not reflect any amount of compensation attributable to any loss of business goodwill. If you believe loss of business goodwill should be considered by the City in connection with the proposed acquisition of the Property, attached to this letter is a "Notification of Right to Claim Loss of Business Goodwill," a "Claim for Loss of Business Goodwill," and a "Loss of Business Goodwill" questionnaire. These materials explain in further detail the provisions of Code of Civil Procedure Section 1263.510, and explain what the owner of a business must prove in order to be compensated for business goodwill losses. If you wish to make a claim for loss of goodwill, the City requests that you review and complete the forms attached. Please let us know as soon as possible if the City's offer is acceptable. This offer shall expire if it is not accepted on or before one hundred and twenty (120) days from the date it has been mailed to you. If this offer is acceptable to you, please so indicate to the undersigned, in writing. Upon receipt of your written acceptance, a Purchase and Sale Agreement incorporating the terms of this offer, and containing further escrow instructions regarding review and elimination of exceptions to title, will be forwarded to you for signature. Upon receipt of a signed Purchase and Sale Agreement, the matter will be reviewed by City Council, which has 119/015610-0008 16 284 d 419373.01 a07/29/03 v ' i • • Ms. Elaine Culp July 29, 2003 Page 4 final approval authority. If the deal is approved by the City Council, escrow will be opened immediately. The City generally uses First American Title Company to handle escrows, and proposes this company handle any escrow here. The City is, of course, willing to consider other escrow companies, if you so desire. If for any reason you are not satisfied with this offer of just compensation, and have relevant information regarding the value of the Property that you would like the City to consider, it will be happy to do so. If you have such information, please contact me immediately and I will make arrangements to have the information reviewed and considered. If you have any questions regarding this offer, or wish to request any additional information, you may contact Kathy Woolley or Bob Stoddard at the above numbers. Please note that the City has made no decision to exercise its power of eminent domain to acquire the Property, and can only do so after it holds a hearing at which the affected property owner(s) have had an opportunity to appear and be heard. The City much prefers to accomplish its property acquisitions byway of negotiated transactions, and toward the end of doing so with respect to this Property, would be more than willing to meet with you to discuss this offer, or any related matter. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the Attachments, and all matters stated herein are made under the provisions of Evidence Code §§ 1152 and 1154, and shall not be admissible in evidence in any proceeding which may be instituted relating to the acquisition of the Property, or in any other action. We hope this offer meets with your approval. As stated, our relocation and acquisition consultants, Bob Stoddard or Kathy Woolley, will be happy to meet with you to discuss the Property, the' offer, or any related matter, and will attempt to contact you soon. If you need additional information, please call me at the number referenced above. Thank you. Very truly yours, CITY YeJenso A M. Kath ity Attorney City of La Quinta 119/015610-0008 17 ^ 419373.01 a07/29/03 2845 Site Analysis Subject Plat Map APN 649.09, Riverside County, CA m& e vrp 3� : a+ l' _ O • y w a a � "' � i( r �l. t®sL • ;i, (32) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • AgV150R5 286 Y' -I t3 A Complete Appraisal Presented In A Summary Report Of The Prospective Taking Of Several Improved and Unimproved Land Parcels, Located Along The East and West Sides Of Jefferson Street; La Quinta, CA. 92253 Otherwise Known As APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La-Quinta, Riverside County, CA. Date Of Appraisal June 20, 2003 Effective Date of Valuation June 10, 2003 Job Reference No. 03-1097 For The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calle Tampico La Quinta, CA 92253 By CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 19 +� Table of Contents TABLEOF CONTENTS.»»..».....».....»»»»»»•»-»»»-..»-»...»....~.........'......»........."'»"' 4 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS"—..—....—.------ 6 SATELLITE PHOTO (TAKEN IN 2000) ......................................................................... INTRODUCTION / HISTORY OF THE SUBJECT ........................................................................................... PURPOSEOF THE APPRAISAL................................................................................................................ FUNCTIONOF THE APPRAISAL.................................................................................................................. PROPERTY RIGHTS APPRAISED.................................................................................... DEFINMNOF MARKET VALUE..................................................................................................... DEFINITION OF EMINENT DOMAIN ......................................................................................... DEFINITION OF CONDEMNATION.......................................................................................................... DEFINITIONOF EASEMENT.............................................................. DEFINITIONOF DAMAGES.................................................................................. DEFINITIONOF BENEFITS........................................................................ BUNDLEOF RIGHTS THEORY.................................................................................................................... BEFOREAND AFTER RULE........................................................................................................................ SCOPEOF THE APPRAISAL ................ .............................................................................................15 DATEOF VALUATION................................................................. LEGAL DESCRIPTION.......................................................................................................... ASSESSMENT& TAXATION.......................................................................................................................16 ... .......10 .12 ........... ..... . ........ .................................................... ........................ .............................. ......... ............................................. ....... ............. .... ..... 11 12 12 13 13 13 13 13 13 14 14 14 1 S REGIONALANALYSIS.».».....».......»».::....................................... ».»...... »....»»»»......»...........»»...»..» 17 CITY ANALYSIS, LA QUINTA, CA»»....».».»•.»».»•.».»..».....»......».»....».......»...».»».......».»N..N......22 NEIGHBORHOOD - MARKET ANALYSIS ... .»..»»».»... ... »......... I ........ ....... »••__- 27 SITEANALYSIS »...»...»».........»....»».................NN.N. ......... »... .............. »»..N.... »....»...»N.NN»..NNN. 31 HIGHEST AND BEST USE ANALYSIS..N..... .......... »...... ............ »............. ........ »».....:.»..........N.......... 41 . APPRAISALPROCESS .:N..NN......... ».».N.»N.»..»»».»...............»..»........».».N.».»..N..». 44 SALES COMPARISON APPROACH..N......»........».....»...» ..................................».... 46 LILLEY: 649-071-008 & 029».,,,,,—...........».,.»----------------------- »---------- ........»..NN.N».N.»NN.....NNN.50 WAH649-071-009»»»»»».........N...»N».NN....»..».»N..NN.N»..N.».N....».N..........N»..N....»»......».».N.........N» 54 PETERSON: 649-071-011 N»...N..».NNN...NN..»....».NN... »...NN...N...... »......... NN......... ..........N.»...:...»......... 60 WAGGONER: 649-071-012.»........................... »...... ........................................................ ».».....»N.N»»...66 FEACK: 649-071-013.........»...................................... .................................. ».............. ........... .»»»..N....... 73 ELROD: 649-090-007..... ....... »... ........ ........ ................ ..»......................... ».»............ »»..»....»..........»...N. 79 NIKOLICH: 649-071-015»........ N»...N...NNNN..NNNNNNN.NN..N..NNN..N.......NNNN.........o...N.M.N.NNN..N..MN.. 8 ROLLAND: 649-071-016 ................................................ .................................».........»»..NN..NN» 89 KRAKOFF: 649-071-017............... ........................ :.............................................................. ..... .....»....»» 95 (4) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 20 4 8 S REYNOLDS: 649-071-018.»»»..»...».» .»»»»»- »-.»»»�«--»�--�--» 101 ASTORGAs».".107 LILLEY: 649-071-020.»»......».................»».».»»........»..»........»...».»......»....».»».«..»»»«»».»....»...»« 113 . LILLEY: 649-071-021.»..»»»»»»...».».»».....».»....»».»....»..........»..»......».»»...................»».»»»»......» 117 ».».,»» 121 MILLS: 649-090-001...»....»»«....»................»»...........»..»»...............»»»..»....».....»........».... CULP: 649-090-002...»».......«.».....»».»....«.....»......».........»..........»«......»........»..........»..»..........»».....127 RACE:649-090-003»..».«.»....»»....».».»»»».......»......».............»»«»».»»».»...»..»...»...».......»».....» 133 KI WALDO: 649-090-004 139 HALL: 649-090-005..»«.........»..»».»»...»»...»»»....»»...».»»«»....»»»..»145 .»«...»». RODRIGUEZ: 649-090-006.»..»»».»»«»......«».»».»«.»...»»..»....»......»......»«»......».... 149 ZILINSKYs649-090-007»«»««............«.».»....»............»»»»»....«»»..»..«»«.»...«.»...»..»......»«.»»...»..155. STEDING: 649-090-008 «»«»»»»».»»•• »».»»» 159 ALEXANDER: 649-090-009...«»»«».«.»».«.»».....»....««»«»«.......».»...»««...».«.................».«...»..««..165 HENDERSON: 649-141-001 «...»...«»..»»».»«».».» ....»....».«».......«..........»....»...».»......»»..171 CERTIFICATI011T».«....,....»....»»«..».....»».»»...............«.»».»...........«.........«.»...»...».... ..».».»».177 ASSUMPTIONS AND LIMITING 179 CAPITAL REALTY ANALYSTS REAL ESTATE A►PRAZEM • ANALYSTS • ADVISORS 21 ��9 Summary of Important Facts and Conclusions Client: The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calle Tampico La Quinta, CA 92253 Intended Users: The Client Property Type: Single family homes, vacant single family home lots, and a parking lot / putting green area Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: Through 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Thomas Brothers Guide Reference: Census Tract Number: Type Of Report: Report Format: Tract 452.05 Complete Summary (6) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 22 2,,Q Summary of Important Facts and Conclusions Purpose of the The purpose of this appraisal is to estimate the just Appraisal: compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, . and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Appraisal: Date of Valuation: Date of Appraisal: Eminent Domain June 10, 2003 June 20, 2003 Owner of Record: Preliminary Title Reports were not submitted or examined. According to public records, title to the subject parcels is vested as follows: 8 APN site Address Owner 1 649-071-008 Jeff L. & Patricia C. Ulley WA 2 649.071-M Ellis & Helen Wah 46055 Jefferson Street 3 649-071-010 Indian Springs Land Cc WA 4 649-071-011. David F. & Patricia L Peterson 46115 Jefferson Street . 5 649-071-012 Bill & Suzie Waggoner 46145 Jefferson Street 6 649-071-013 Eugene T. & Carol A. Feack 46175 Jefferson Street 7 649-071-014 David A. & Card A. Elrod WA 8 649-071-015 Milan & Mila Nikolich 46235 Jefferson Street 9 649-071-016 Patsy Rolland 46305 Jefferson Street 10 649-071-017 Sheila A. Krakoff 46335 Jefferson Street 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 12 649-071-019 Ronald Astorga 46425 Jefferson Str!aet 13 649-071-020 Jeff L. & Patricia C. Ulley WA 14 649-071-021 Jeff L. & Patricia C. Linty NIA 15 649-071-029 Jeff L. & Patricia C. Ulley WA 16 649.090-001 Harvey A & Audrey R. Mills 46170 Jefferson Street 17 649-090.002 Elaine L. & Robert L. Culp 46200 Jefferson Street 18 649-090-003 Emma Radde 46250 Jefferson Street 19 649-090-004 Edward E. & Marie A. Waldo 46280 Jefferson Street 20 649-090-005 William Hall WA 21 649-090-M Mirta Rodriguez 46390 Jefferson Street 22 649-090-007 Charles J. & Alice S. 2iiinsky WA 23 649-090-008 Sue F. Steding 46450 Jefferson Street 24 649-09D-009 John D. & Jacy P. Alexander 46480 Jefferson Street 25 649-141-001 Leonard C. & Margaret R. Henderson SW20 Vista Grande (7) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS •ANALYSTS • ADVISORS 23 291 Summary of important Facts and Conclusions Site: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels are as follows: 1 6411-UVIAMo 2 649-071-009 R., �....._ _ _ _. - -• Ellis 6 Helen Wish 46055 Jefferson. Seed 9.563 3 649-071-010 Indian Springs Land Cc David F. 8 Patricia L. Peterson WA 46115 Jefferson $NO 11,326 4 649-071-011 5 649.o71-012 Bill a S1aie waggoner 46145 Jeff raon strap 7.841 6 649-071-013 Eugene T. 8 Carol A Feb* 46175 Jefferson Street 7.841 7,841 7 649471-014 David A. 6 Card & Elrod Milan 3 Mile NIM-1l WA 46235 JMsrOW SWest 7.841 6 g49-071-015 6 649-071416 Patsy Rolland7A41 46305 Jefferson Seed sae.t 7,841 10 649471-017 Sheila A. Krakoff 46335 JfftMW Seed 7.641 11 649471-018 Timothy K. Reynolds Ronald MOP 46395 Jeftmon 46425 Jefferson SWed 10,454 12 649471-019 13 649-071-020 Jell L. 8 Patridp C. LYley WA 5.663 6,712 14 649471-021 Jeff L. 8 PaMdo C. LNley WA NIA 1,742 15 649-071-029 Jeff L. 8 Patricl• C. Lilley Harvey A. 3 Audrey R. MMIS 46170 JMerson S"d 7.841 16 649490-001 17 649490-002 Elaine L. 8 Robed L. Culp 46200 Jefferson Seed 7.841 7,841 16 649490.003 Emma Re" Edward E. 8 Maria A. Waldo 46250 Jefferson Sbed 46200 JsfferUM Seed 7.841 19 649-090A04 2064949040 M� 46300 Jefferson Seed 7.841 7.841 4M 21 649490-008 22 849-090-007 Rodriguez Charts J. 8 Alice S. 271Mtsky WA 7.841 23 649490-005 Sus F. SMding 46450 Jeffarson Seed Strad 7.841 9.148 24 649490-009 25 649.141-001 John D. 3 Jacy P. Alexander LeoardnC. & Marpard R. Henderson 48480 Jefferson 80020 Vida Grande 10.434 Improvements: 17 of the subject parcels are improved with single family homes. The remaining 8 parcels are vacant. Zoning: According to the City of La Quinta Zoning Map, all of the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning is likely as of the date of value. Highest And Best Use, Hold for investment "As Vacant": Highest And Best Use, Remain as improved "As Improved": Property Rights Fee Simple Estate Appraised: (8) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 24 292 Summary of Important Facts and Conclusions Final Estimate Of Just Low Ad 'aa SWg!L 1149 Compensation: 1 0 2 GOW1406 JML •LMY Eft & NOW Wah a6oa6Jawalswev" . 6,p. 2 sab-071-010 • 610-071-0H kdfao spMP Lard co DM0 F. 0 PW1dS L ►*WW 46115 JMMaon EaM r am 01M ,7 0 616a71-012 N 6 SUEW Wa60orW Eugem T. 6 God A FMck a614S Ja6oa11"al on 06175 Ja6Waon EMMI 6FR 11M . 6E1 7041 • 61Y071-012 7 64SC1414 Do" A 6 God A aw WA EMMI NWM MR 7JM1 . 0 6a6a71-01S 0 64DWI-016 M IM 6 MIS NNW" ►aMyRaaod a6226 Ja6Waon 4MMjebanonshad lFR 7441 ?Jul 106a6W1-017 Shift AKrOWN -a62]6JGMaMBasal WR 7J47 . 11016a71-016 TNfryRMidso J6MJa6Waonwast MR i0AM 126a6.071-010 17ba0WUM RWMdAabW JabL6POOMC.LEaY WA NWM - S462 . 14 G4WI4W 10 GoVI429 JOB & P80 C. LftY JW1 L 6 Pawk" C. UMMY - WA _ WA NWM Nana .7. 1 .742 2 10 60490-M NanMY A 6 AudlW R. MEt 46170 J06Waoh 11"M ON"SV" EFR 17 64640).= EMM L 6 RM M L GAP Rackk 4ammmJa6Waon ISM 7441 - 10 6/60001M N 616400am Ea Edowd E 6 WAS A WSW 46160 Ja6Waon ew" � 7JN1. 7JM1 E0 20 6460M WM m Nd Saba EFR 7JM1 - 2f 60480a06 22 06?4E0007 MYM Room ChWW J. 6 Ake S. 2Ynky a6260 Ja6oaon WA None 7JM1 23 0/640006 sue F. 618dr0 46M !W1Waoh and am 7J41 N 446a06600 John D. 6 bey P. MwArder� 286/6/11-0M LaardC.6MW6Wd 600201 1iiar iF1t 10 M . Personal Property: $0 l (9) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS a ADVISORS 25 293 r i! y \ C .4.1 tic -14 ��e ,, IY�, tti �� •� s 1 V��Ri -•` �,�'.1 �il� F��ae �: Y i .S� ��•��.. .. y`� ,% ` f 7 it • �� ,� �' IAJ t. tl i. v � 1 ii � j' 1�°e e � �.. ,,.� �� • � ,�tl ��.� � (� .•r l _ � . emu, 1% l Introduction / History of the Subject The subject property includes 25 separate legal parcels, located along the east and west sides of Jefferson Street, south of Westward Ho Drive, in La Quinta, CA. All of the parcels except 1 have frontage on the Indian described n in the foCOourse. The history of the Indian Springs Country Club ovAng sections: The property was originally developed with an 18-hole golf course and some residential homes in the early 1960's. Several of the subject homes were developed in the 1960's. In January 1984, One Hundred and Thirteen Corporation acquired the project for $1,595,000. One Hundred and Thirteen Corporation subsequently acquired additional parcels, which made up the bulk of what is now the existing Indian Springs site. The golf course was reportedly not managed or maintained up to market standards under the One Hundred and Thirteen Corporation ownership. The facility had a poor reputation and reportedly performed well below market standards. One Hundred and Thirteen Corporation subsequently defaulted on a trust deed, and the property reverted to Diamond Benefits Life Insurance Company (In Receivership) on November 1, 1992... A lease agreement for the golf course and related facilities and equipment was. executed on September 29, 1994. The lessee made some improvements to the golf course, and the golf facilities began operating at near market standards for the courses' market niche, which was at the lower end of the spectrum. 1n early 1998, the Diamond Benefits Indian Springs holding was placed in escrow by Indian Springs Land Co., LLC. Indian Springs Land Co., LLC is an affiliate of Mr. Roger Snellenberger, an active subdivision developer, with several projects fully developed and absorbed in the Coachella Valley market. The escrow price was $6,353,000 (it was $8M prior to the school site sale described below). During the escrow period in 1998, Diamond Benefits sold approximately 36.5 acres of land at the SEC of Miles Avenue and Dune Palms Road to the local school district. The sale price was $1,647,000, or $45,123 per acre. In order to make up the lost land area, the developer acquired APN's 604-062-008 and 009. Both parcels sold on 5/14/99 for $200,500 each, or approximately $42k per acre. The Diamond Benefits acquisition was completed on 1/20/00. The sale price was $6,353,000, inclusive of the golf course. Additionally, the developer (and/or. related entities) acquired a contiguous. 40-acre parcel located on the SEC of Miles Avenue and Jefferson Street for $1,520,000, or $38,000 per acre. The closing date was 6/6/00. The assemblage was completed with the acquisition of a 12.5-acre parcel on 6/9/00 for $433,000, or $34,640 per acre. (11) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 27 2 9 5 Introduction / History of the Subject Property (cont'd) Currently, the developer has developed the bulk of the remaining lots located on the east side of Jefferson Street. The absorption rate for the project has been among the strongest in the region, as the units have attained excellent market acceptance. Alternatively, the subject parcels have not traded actively over the past several years. The reason is that Jefferson Street is a major arterial, that bottlenecks at the area of the subject, where the street becomes 1-lane in each direction. In fact, during my physical inspection, several of the homeowners indicated• that they felt that the combination of street noise and the high traffic count have been. detrimental influences. The fact that 6 of 24 residential lots in this area remain undeveloped after over 4 decades subsequent to their subdivision clearly supports the lack of demand and viability for single family homes on Jefferson Street in this particular area. However, the lots back to the Indian Springs Golf Course, which does provide good view elements to the subject homes. The southern end of the subject area abuts the Whitewater River, a large regional drainage escarpment. This drainage. periodically floods, closing Jefferson Street to through traffic. In light of the location of the Whitewater River. and the configuration of Jefferson Street, the City of La Quinta is currently exploring the possibility of acquiring the subject parcels in order to widen Jefferson Street and construct and bridge over the Wash. The potential taking generated the requirement for this analysis. Purpose of the Appraisal The purpose of this appraisal is to estimate the just compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis fora deposit of probable just compensation. Function of the Appraisal Eminent Domain Property Rights Appraised The. property rights appraised are those of the Fee Simple Estate. The definition of Fee Simple Estate for this appraisal is as follows; Definition of Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.", he Dictionary of Real Estate Appraisal 3rd Edition Appraisal Institute Chicago Illinois, Page 140.) (12) CAPITAL REALTY ANALYSTS REAL ESTATE APPRmsFRS • ANALYSTS • ADVISORS 28 296 Definition of Market Value The definition of Market Value for this Appraisal is as follows: A. The market value of the property taken is he highest price on the date of valuation that would be agreed to by seller, being Willsell but abeiiinga . under no particular necessity for so doing, or obligated buyer, being ready, wnd illing and able to buy, but under no particular necessity for so doing, each dealing with the other with the full knowledb y of all the uses and purposes for which he property is adaptable in a buyable period. B. The fair market value of the property taken for which there is no relevant . market is its value on the date of valuation as determined by any valuation that is just and equitable. Source: California Code of Civil Procedure, Title 7, Chapter 9, Article 4, Paragraph 1263.320) Definition of Eminent Domainon "The right of government to take private property for public use stiup the also known ment of just compensation. The Fifth Amendment of he U.S as "the taking clause" guarantees payment of just compensation upon appropriation of private property. Definition of Condemnation "The act or process of enforcing the right of eminent domain."' Definition of Easement that conveys use, but not ownership, of a portion of " An interest in real property Y an owners property. Access or right-of-way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space and preservation easements. Definition of Damages California Code of Civil Procedure Section 12byei her or both of he0. Damage to the rfol der ylow ng: is the damage, If any, caused to the remain (a) The severance of the remainder from the part tcthe property is taken in the (b) The construction and use of the project for manner proposed by the. plaintiff whether or not the damage is caused by a portion of he project located on the part taken. 2 ..: Ga;l Fstat� ADQLat32t. Chicago. it.. Page 116 _ _ . �,., DlctlanalY of Re?I Estate AD�l. Chicago. It.. Page 71 R I fatexvisal, Chip It.. Pa le 110 CAPITAL REALTY ANALYSTS (13) REAL ESTATE APPRAISERS • ANALYM • ADVISORS 29 297 Definition of Benefits California Code of Civil Procedure Section 126 rid the project for hich the the benefit, if any, caused by the construction a use of ro a fry is taken in the manner proposed by the lt tff art taken whether benefit is caused by a p or not the p p portion of the project located on hep Bundle of Rights Theory The concept that compares property ownership to a bundle of sticks with eache h stick representing a d istinct a nd s eparate r ight of t he p roperty o wrier, e.g. ' ht to use real estate, to sell it, to lease it, .to give it away, or to choose to rig exercise all or none of the rights. Before and After Rule -Often referred to as the Federal Rule; In eminent domain ence between thevalueof in which just compensation is measured as the d the entire property before the taking and the value of the remainder after the taking. I have applied the State Rule to appraise the subject taking. There are nine procedural steps to be followed, as shown below: 1. Value Before Taking 2. Fair Market Value Bof efore h Take Part of the Whole 3. Remainder Valuee 4. Remainder'Value After the Take 5. Damages to the Remainder 6. Benefits to the Remainder 7. Net Damage to the Remainder Note that all of the proposed takings are for a 100% fee estate. fonnsequeontly, there will be no remainder parcels, ease taken sn hmets,e whoeamaand consequently, just the State Rule is applied, thepart compensation is for a 100% fee estate in each parcel. Scope of the Appraisal ,appraisal assignment" as defined in This Appraisal Report is intend the Standards of Professional Appraisal to sal Practice of the Appraisal Institute. It is that the appraisal service be performed in such a manner that the my intent results of the analysis, opinion or conclusion be that of deemed pertinent�toa he . Additionally, it is my intent that all appropriate data reported. in solution of the appraisal problem be collected, confirmed and repo with the Standards of Professional Appraisal Practice and the Code of conformity Appraisal Institute. The scope of the analysis is Professional Ethics of the intended to be appropriate in relation to the significance of the appraisal Problem. (14) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS •,ADVMOItS 298 30 • Scope of the Appraisal (cont'd) Lacking improvements with an associated cost and /or income eamin.g potential, the Cost Approach and the Income Approach are excluded for the valuation. of the vacant parcels. The Sales Comparison Approach is applied exclusively for the vacant parcels. In terms of the improved parcels, both a Cost Approach and a Sales Comparison Approach are applied. The Income Approach is excluded as there is a lack of rental data in the area. Although one of the subject parcels is currently leased, a copy of the lease agreement was not provided. The Appraiser interviewed market participants including kuebuyers, developers, real tt te brokers and lenders in the subject meadpet competing areas during he collection and confirmation of data for this assignment. Date of Valuation June 10, 2003 Date of Appraisal June 20, 2003 Legal Description The legal description for the subject property is as follows: 1 649-071-008 .20 Acres M/L in Lot 17 MB 041/055 TR z19U Portion of Lot 19 and Lot 18 MB 041/055 TR 2190 2 649-Q7'1-009 3 649-071-010 Portion of Lot 19 MB 041/055 TR 2190 4 649-071-011 Portion of Lot 19 and Lot 20 MB 041/055 TR 2190 5 649-071-012 Lot 21 MB 041/055 TR 2190 6 649-071-013 Lot 22 MB 041/055 TR 2190 7 649-071-014 Lot 23 MB 041/055 TR 2190 8 649-071-015 Lot 24 MB 041/055 TR. 2190 9 649-071-016. Lot 25 MB 041/055 TR 2190 10 649-071-017 Lot 26 MB 041/055 TR 2190 11 649-071-018 Lot 27 MB 041/055 TR 2190 12 649-071-019 .24 Acres M/L in POR Lot 29 and Lot 28 MB 041/055 TR 2190 13 649-071-020 13 Acres M/L in Lot 29 MB 041/055 TR 2190 14 649-071-021 Lot 30 MB 041/055 TR 2190 15 649-071-029 .04 Acres M/L in POR Lot 18 MB 041/055 TR 2190 16 649-090-001 Lot 39 MB 041/055 TR 2190 17 649-090-002 Lot 38 MB 041/055 TR 2190 18 649-090-003 Lot 35 MB 041/055 TR 2190 19 649-090-004 Lot 36 MB 041/055 TR 2190 20 649-090-005 William Hall 21 649-090-006 Lot 34 MB 041/055 TR 2190 22 649-090-007 Lot 33 MB 041/055 TR 2190 23 649-090-008 Lot 32 MB 041/055 TR 2190 24 649-090-009 Lot 31 MB 041/055 TR 2190 25 649-141-001 Lot 1 MB 057/007 TR 3505 (15) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 31 29.3 • Assessment & Taxation Consistent with code sections pertaining to eminent domain, assessed value has not been used as a basis for valuation. Easements and Encumbrances A Preliminary Title Report for the subject parcels was not submitted or examined. The subject is being appraised as though there are no atypical easements and/or. , encumbrances that may have a negative impact on the prospective market value. or marketability of the subject. The appraiser reserves the right to modify any data or value estimates contained in this analysis after inspecting Preliminary Title Reports for the subject parcels. (1 6) CAPITAL REALTY ANALYSTS REAL ESTATE ArpwsERs • ANALYSTS • ADVISORS 32 300 • Regional Analysis Regional Map Desert Hot JMinrra Tree Ynb Mown+. ,rdanpl(jo S~ vadernson ey I.R. WO Nodh POW JoslMw free Iletirnlal Perk eB�el Vtlsier $prwie, Deon lid Dillon Rd g PMto Wt Fria-! Liver '•$ .....r.no Wash Washirrplon W." ThoJW4 Mo She palm SPrMpcq Pettus . j� Thss'INtreh Son JsciMo C>1lMIKeI - ' � MAldertless Cfg(e f Mtl IA L F O R N, 1 A Subject �blNnwoed �PCove ii , MyagM VltltetWMN�' YaseYir• V deYWs old P ncho FrodlNirY+Y. MYepe a 4 . 74 plim Daael'i . Y' w 111 . •• .I 0.'CGdAJ8 CRYSan nernwdir-0 NalMx!sl Ftxrst T4 ?la aurae' j, �ThennMr SUI flwrre..►WeAn. Theemal Airpolt `, Red Mnmlw, • j=AW. �88111A . - S Rasis e CiFwiNe LR. Dwere* It31 SAW Set Death Regional Demographic Snapshot Household Inc. Housing Val. Age Force Coachella 23,950 $ Desert Hot Springs 17,000 $ Indian Wells 4,020 $ Indio 51,500 $ La quints 26,300 $ palm Desert 42,350 $ palm Springs 43,800 $ Rancho Mirage 13'900 $ Unincorporated 64,262 $ Total. 331,732 Mean 33,173 $ 40'014 $ 113,20o 31.3 19,460 30,058 $ 68.400 23.0 9,120 26,782 $ 74,100 30.2 6.540 113,851 $ ' 372,900 60.2 N/A 33,629 $ 83,600 . 26.2 21,701 51,231 $ 117,400 31.0 7,460 48,309 $ 172,600 41.9 15,940 35,651 $ 141,200 43.9 25,820 58,341 $ 252,500 58.8 N/A 41,741 $ 98,000 35.0 N/A 41,741 $ 126,200 35.0 N/A . 5.80% 14.40% 6.70% 2.90% 9.10% 5.60% 3.80% 5.00% 3.20% 6.50% N/A (17) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISms • ANALYSTS • ADVISMS 33 301 Regional Analysis Population The following chart shows the growth pattern of the regional area since 1980; 400.000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 41 RA 0� QP aP 0. 0a �OCP �01 --+-- Population -Power (Population) In addition to the permanent population of 331,732 on 1/1/01, there is an estimated 124,000 seasonal residents from January through May. Among the incorporated cities, the following chart depicts population rates since 1980: e cathedral city ■ Coachella a Desert Hot Springs 13Indian Wells ■ Indio ■ La Quints ■ Palm .Desert O Patin Springs ■ Rancho Mirage The following table shows the same data expressed in terms of growth rate. percentages since 1990; INN-2001 0.00% 20.00% 40.00% 60.00% 60.00% 100.00% 120.00% 140.00% * Rancho Mirage O palm Springs ■ Palm Desert ■La Write ■ Indio a Indian Wells 0 Desert Hot Springs ■ Coachella ■ Cathedral City As shown, La Quinta is leading the region in terms of population growth. Indio passed Palm Springs as the largest city in the regional area, and Palm Springs has had the least growth over the past 10 years. (18) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 34 302 • Regional Analysis Population (cont'd) The total permanent population of the Coachella Valley is projected to. be 372,000 in 2005, 422,000 in 2010 and 473,000 by 2015. Economy Historically, the regional economy developed around tourism in the western portion o f t he r egion, and a griculture i n t he a astern p ortion o f t he r egion. T he tourism, construction and agricultural industries continue to drive. the economy of the region. The following table shows regional employment by sector; Employment ® Manufacturing ■ Utilities / Transportation O Government / Schools O Construction ■ Finance ■ Agriculture ■ Tourism O Retail ■ Services In terms of regional economic conditions, hotel room sales are an important indicator as the tourism and services segments make up the largest employment base. As shown in the table below, regional hotel room sales trending down in 2001, after encountering a strong increase through the 90's. Regional Hotel Room Sales 400 350 300 250 200 150 100 50 0 - 0 Room Sales (millions) Power (Room Sales (millions)) In terms of construction activity, 2002 had $1.13 billion in permit activity, which was the 2"d highest year ever in permit valuation. The following table shows a Building Permit Valuation comparison: (1 g) CAPITAL REALTY ANALYSTS RCM. ESTATE APPRAISERS • ANALYSTS • ADVISORS 35 303 • Regional Building Permits By Property Type —+— Residential —s— Multi -Family Commercial 92 93 94 95 96 97 98 99 0 1 2 Yew Assessed values in the regional area had been flat from 1992-1997. Total assessed values increased from 1997-2002. The eastern part of .the regional area continues to support a significant agricultural based economy. Although current crop production is up, employment is down due to improved technology in production and a migration to less labor-intensive .crops. In the manufacturing sector, growth has been limited and industrial lot supply & demand is roughly in balance. Thg State created an Enterprise Zone in 19of 1, thewhich. eregion Efforts s approximately 29,000 acres in the northeastern attract new development to this area have largely failed to date. The economic benefits expire in 2006. Conclusion The subject region is in the growth stage of its economic life cycle. The regional area is projected to continue to'double in population approximately every 15 to 16 years. The eastern part of the regional area should continue to transition from agricultural uses to residential and ancillary supporting uses. Current country club residential absorption is trending down due to negative national and regional economic conditions. However, the primary housing sub -market at lower price points is trending up, as is the average retail unit price. The hot summer climate of this regional area will continue to create a significant seasonal market. Long- term prospects appear similar to the historical growth patterns of other, . more mature seasonal markets in the southwest like Phoenix, Tucson, Las Vegas, etc. The core industry of tourism & related businesses should continue to dominate the economy of the regional area in the long term. As the regional area transitions into permanent populations of over approximately 750,000, it is likely that a sufficient labor pool will exist to attract larger manufacturing and non - service related economic entities. CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 36 304 Regional Analysis Conclusion (cont'd) In the short term, the subject region is characterized as being in a growth.mode. After poor or no growth from 1990 to 1995, the residential and retail sectors trended up sharply through 2002. Current industrial supply & demand is roughly in balance. The hospitality industry had a record year in 1999/2000. The 01102 season was negatively impacted by the 9/11 attacks. The 02/03 season showed a small increase. While the national and regional economic down turn have impacted some real property segments, the lower end primary housing and retail segments continue to progress. These trends are expected to continue through at least the short term. (21) CAPITAL REALTY ANALYSTS 305 REAL ESTATE APPRAISERS • ANALYSTS • AA 3IS RS • City Analysis, La Quinta, CA fc Subject aNrer....s.r f -MNM a OP cw�M .r.. � f7Y �'. o. trw wY. w�...` r•.. s d ��Y�, • • 1 Mw1 wPM rM SII.,Y...wMAN f, ! r r-ft " d1lilt 1 YYrM r ! 1 M.YIM P.wY 4 7 NYYI • n.. wnwY � w rww j *• w Location La Quinta, CA. is located in the eastern portion of the Coachella Valley. The city is bordered to the west by the Santa Rosa Mountains providing an outstanding natural view amenity. Historically, La Quinta developed around the La Quinta Hotel, which was built in 1926. The City has easy access to Highway 111 and a direct route to Interstate 10 via Washington Street and Jefferson Street. Population Population Growth, La Quinta From 1989 to 2002, the permanent population of La Quinta grew by 30. approximately 337%, or an 25,000 average of approximately 28% per 20,000 year. In addition, an estimated 15, 12,000 seasonal residents reside in 10,000 La Quinta for 4 to 6 months per s,000 year. The "season" is generally 0 89 90 91 92 93 94 98 98 97 98 99 0 1 2 considered January through May. La Quinta has been one of the fastest growing cities in Riverside County. The City. has a substantial inventory of residential and master -planned community land remaining for development. (22) CAPITAL REALTY ANALYSTS RFAL EsrATE Amman • AmALYSrs • ADVISORS 38 306 City Analysis, La Quinta, CA Economy La Quinta has historically been known as a higher end. resort community. The local a con omy i s d riven m ainly b y t he r esort / r esldentlal d evelopments i n t he city. The number of high quality projects such as PGA West, Tradition, Rancho La Quinta, La Quinta Resort &Club, and the La Quinta Hotel provide a significant. employment base in the service and construction sectors. The following graph shows a historical prospective on the number of residential units developed in La Quinta over the past 16 years: Residential Units Developed yea low 86 88 90 92 94 VID w &. . ---- On ■o ■sae on ■sae on ■"81 ■ NO2 As shown, the city has had a tremendous number of new residential units developed, in relation to the size of the permanent population. A number of country club projects are currently active in new residential construction. These include PGA West, Rancho La Quinta, Mountain View, The Hideaway, and the Tradition. PGA West in particular has been quite active. The property owner, KSL Recreation discontinued their in-house residential development program in mid-1998 and sold most or the entire remaining superpad production lot inventory to merchant builders. The City's redevelopment agency recently acquired 525 acres of land located west of Jefferson Street between Avenues 52 and 54. Redevelopment of this land will llinclude the ditty'sre first . uned f or She olf course. Future hotel/resort and retaildevelopment property, which will create new tax revenue for the city. Other than the homebuilding industry, La Quinta has a substantial economic base in the tourism industry. The Washington Street / Highway 111 corridor is rapidly evolving with a new Auto Mall and an approximately 66-acre commercial/industrial park known as the La Quinta Corporate Centre, which is partially developed with more phases planned. A significant amount of undeveloped residential land in the city (23) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS a ANALYSTS • ADVISORS 39 307 �J City Analysis, La Quinta, CA Economy (cont'd) seems likely to assure continued growth on a similar pattern through at least the mid-term. Based on the historical growth pattern to remain intQuinta, and the he growth phase availability of land, La Quinta is generally projected of its economic life cycle for approximately the next 15 years. Recent developments have occurred in La Quinta including many notable businesses and restaurants, such as Fisherman's Market, Jensen's Finest Foods, LG's Steak House, Larsen Golf Cars, and The Falls Prime Steakhouse. Other commercial activity along Highway 111 is underway, including Big Five Sporting Goods, Ross Dress For Less, Staples, and a' Super Wal-Mart. Along Washington Street, new services are expanding, which will include a Marriott Residence Inn, a professional. plaza, a medical plaza, and Omri & Boni restaurant. H istoric O Id T own L a Q uinta i s b eing revitalized as well with n ew restaurants, a mixture of retail stores, and professional office spaces. Also in La Quinta, the new La Quinta Park will be constructed with Spring 2003 as the. anticipated completion date, located at the comer of Adams Street and Westward Ho. The graphs below show the economic growth of La Quinta: Hotel Room Sales in Millions $ 097 ■ 96 ■99 ■ 2000 ■ 2001 ■ 2002 97 98 as w„v ---- ---- Building Permit Valuations in Millions $ ■97 ■98 ■99 ■ 2000 02001 97 98 W &%FVV - (24) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 40 308 • City Analysis, La Quinta, CA Economy (cont'd)' Taxable Sales in Millions $ 139.9 097 1.5 ■ 9S 099 02900 23.3 ■ 2001 338 - -- 275.2 102002 Employment The City of La Quinta is largely suburban residential in character. On a regional level, the resort character of the Coachella Valley reflects the large percentage of employment in the retail, tourism and services. industries. Construction has historically had a strong employment base. The following table shows a summary of employment by sector: Coachella Valley r%vt III,T•I,.om-aG.— Services 21,000 Tourism 12,500 8,000 Agricultural 7,500 Construction 7,500 Govemment/Schools 6,500 Finance Related 5,000 Utilities/Transportation 3,500 Manufacturing 94,500 Total Conclusion La Quinta has had the fastest growth ratio of any other city in the regional area. This trend is expected to continue, as there are a large number of residential acres and existing projects remaining for development. Similarly, the number of households is expected to grow at a proportional rate. Median income levels in the subject market are increasing because of a higher percentage of professional employment. The potential for an increasing employment base within the city is likely to be driven by the continued success in the construction industry, golf and retail centers on Highway 111. The table on the following page shows the current demographic profile of La Quinta: (25) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 41 309 • City Analvsis, La Quinta, CA City of La Quinta - 2002 Demographic Profile Total Population Occupied housing units 71.5% 10,100 Sex Male 14,081 Owner occupied 81.5% 8,227 Female 141634 Renter occupied 18.5% 1,873 Vacant housing units 28.5% 4,027 Age Units for seasonal use 21.5% 3,031 Under 10 years 4,763 10 to 19 years 4,245 Housing Type 20 to 44 years 9,431 Single family 91.3% 12,902 45 to 64 years 6,430 2 to 4 units 2.4% 335 65 years and over 3,845 5 or more units 4.1 % 580 Median Age 36A Mobile home/trailer/other 2.2% 310 •HouseholdsHousing Values Family households 7,841 Specified owner occupied units 7,617 . Non -family households 2,259 Less than $100,000 15.2% 1,150 Persons in household 28,675 $100,000 to $14.9,999 25.2% 1,920 Person in group quarters 40 $150,000 to $199,999 20.3% 1,549 Persons per household 2.84 $200,000 to $299,999 18.0% 1,371 $300,000 to $499,999 11.9% 0..06 Contract Rent $500,000 to $999,999 6.9% 529 Specified renter occupied units $1,000,000 or more 2.4% 185 paying monthly cash rent 1,873Home Value $185,9417 Less than $300 68 $300 to $499 132 $500 to $749 490 $750 to $999 647 Per capita income $ 29,123 $1,000 or more 491 Median household income $ 58,229 Median family income $ 60,680 Median (26) . CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 42 310 s- Neighborhood - Market Analysis p� A 10 en • c ow .. P {�, j e e It Vd.— 11 MNI. M.r M 4PM/1 4 IM1I)M P �w14 ��- -'..M • s j yP.+ a:• i a i1w Subject ... w w..o-.. rrwP •� • r4.•- iilil�G1 �,t. 'a.+►o- urrP �,,,,.P � � ,`'. •AKA: �0 �•raa - [[i errs d M Y Introduction located on the The subject property includes all of the homes and vacant lots, east and west, sides of Jefferson Street, south of Westward Ho, and north of the Wash, and 1 SFR located at the NEC of Jefferson Street and Vista Grande, La Quinta, CA. All of the parcels are located in an area generally known as Indian Springs. All of the parcels front on the Indian Springs Golf Course, except for the SFR on the NEC of Jefferson and Vista Grande. This home backs to the wash, and although it does not front on the fairway, a wide golf course view is available across the wash. Development Trends Historically, this neighborhood developed around the Indian Springs Country Club. The Club fell into disrepair in the 80's and 90's. Demand proved limited in this location until approximately the late 19901s, when the Indian Springs property sold to a developer who has made substantial improvements to the property. Several hundred new homes have been successfully developed immediately north of the subject within Indian Springs over the past several years., The subject lots front on Jefferson Street. Jefferson has evolved into a major regional artery. However Jefferson narrows to 1 lane each way efferson Street t the subject, creating a bottleneck. Consequently, the parcels located on have historically had limited market appeal. Of the 22 developable lots located on Jefferson between Westward Ho and the Wash, 6, or 27.3% remain undeveloped, after over 40-years of market exposure. (27) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 43 311 Market Analysis In light of the fact that developers build homes on. lots that support values in excess of cost, the high percentage of vacant lots in the subject are supports the conclusion that the speculative development on these lots would not prove financially feasible, as of the date of value. Additionally, the cost -based value indicator for many of the subject homes exceeds the sales comparison -based indicator, suggesting that replacement cost exceeds value in many cases, as of the date of value. Although current sales data for units located on Jefferson Street is limited; the following table shows the historical sales data that is available for subject units with Jefferson Street exposure; Lot Unit Sale Sale Sale No. APN Owner Size Size Date Price Price PsF 1 649-090-002 Culp 7,841 2,333 11 /20/1991 $185,000 .w ..,., ...,., $ 79.30 & AMA ,in 2 649-071-011 Peterson 11,326 7,841 2,v25 1,872 011 &-1 WO 2/27/1995 1P $143,000 w $ —.-- 76.39 3 4 649-090-004 Waldo 649-090-006 Rodriguez 7,841 1,984 5/23/1996 $165,000 $ 83.17. 5 649-071-019 Astorga 10,454 2,130 2,336 2/9/1999 9/29/1999 $130,000 $170,000 $ $ 61.03 72.77 6 7 649-071-015 Nikolich , 649-071-016 Rolland 7,841 7,841 1,526 4/18/2000 $130,000 $ 85.19 8 649-071-017 Krakoff 7,841 2,419 9/14/2001 $210,000 $ 86.81 9 649-071-012 Waggoner 7,841 2,243 1/31/2003 $186,000 $ 82.92 In order to test the value trend for parcels with Jefferson Street frontage, the price PSF, sorted by date, is shown on the following graph: $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 $ PSF Trend On Jefferson 91 93 95 96 99 99 0 1 3 Year --♦- s PSF Linear ($ PSF) As shown, values for homes on Jefferson Street have remained virtually flat, on a PSF level, since at least the early 1990's. Since approximately 20001 values appear to have declined slightly. The reason is that Jefferson Street has become increasingly more busy, lowering both the desirability and marketability of homes on Jefferson Street. (28) CAPITAL REALTY. ANALYSTS RP.AL ESTATE APPRAISERS • ANALYSTS • AmsoRS 44 31 Z Market Analysis In contrast, I collected sales of adjacent lots from the same Map book,. 649-07, that do not have Jefferson Street frontage. The following table shows the data, followed by the same $ PSF chart: Unit sale sale sale No APN size Date Price Price PSF 1 649-051. 2,050 9/1/1992 $179,000 $ 87.32 2 649-071-022 2,458 2/15/1994 $170,000 $ 69.16 3 649-063-010 2.080 3/8/1995 $178,500 $ 85.82 4 649-071-005 1,882 4/13/1995 $160,000 $ 85.02 5 649-071-027 2.496 7/21/1995 $160,000 $ 54.10 6 649-062-020 1,834 9/5/1996 $128,500 $ 68.97 7 649-071-035 1,963 4/30/1997 $155,000 $ 78.16 8 649-072-004 2.370 1/15/1998 $148,000 $ 62A5 9 649-063-012 1,822 4/30/1999 $150,000 $ 82.33 10 649.061-019 1,750 5/21/1999 $150,000 $ 85.71 11 649-061-007 1,907 9/8/1999 $145,500 $ 76.30 12 649-071-M 2,197 1/21/2000 $160,000 $ 72.83 13 649-052-016 2,262 7/27/2000 $197,500 $ 87.31 14 649-071-033 1,789 3/30/2001 $225.000 $ 125.77 15 649-071-031 2,923 5/81MI $280,000 $ 95.79 16 649-061-013 2,305 5/25/2001 $225,000 $ 97.61 17 649-072-001 1,953 8/23/2001 $168,500 $ 8628 18 649-061-015 2.116 9/13/2001 $285,000 $ 134.69 19 649-063.014 1,710 10/24/2001 $ 225,000 $ 131.58 20 649-061-006 2,128 7/WW2 $288,073 $ 135.37 21 649-062-011 2,569 10/16/2002 $320,000 $ 124.56 22.649-063-005 2,526 12/26/2002 $277,000 $ 109.66 23'649-063-01.5 1,935 V7/2003 $247.000 $ 127.65 2A ea9-n63408 1.928 5/22/2003 $ 225,000 $ 116.70 (29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 45 313 Market Analysis As shown, values have generally trended up for units in this neighborhood, off of Jefferson Street. For this reason, the comparables located off of Jefferson Street are adjusted downward in the Sales Comparison Approach for their superior location. This feature is partially offset by the fact that the subject units are located on the golf course. While golf course locations typically command premiums, the premium for the subject lots is somewhat limited slightly as the lots located on the east side of Jefferson front on a short course. All of the dots front on public golf, which is an inferior attribute as compared with private club locations. However, upward adjustment is applied to all of the off -fairway comparables in the Site Niew category. Conclusion The Jefferson Street exposure of the subject lots is the dominant physical feature of all of these units. The location is among the least desirable in the City of La Quinta, and consequently, these units cant' overall low values as compared with the new homes located in the adjacent Indian Springs Country Club area. The situation is getting worse, as traffic on Jefferson continues to increase. While overall residential market conditions are continuing to increase in the regional market, the value trend for the subject units is flat to decreasing slightly. The decreasing value trend on Jefferson is expected to continue as traffic increases on Jefferson Street. As shown bpi comparing the PSF sale prices for units on Jefferson, to those off Jefferson (refer to the 2 tables of historical sales), it is clear that the market is not willing to pay the same PSF prices for unit on Jefferson as compared with those off Jefferson, where there are a number of sales with over $100 PSF sale prices. Alternatively, the highest PSF price paid on Jefferson Street in the past approximately 12-years is just over $86 PSF. Net of any eminent domain action, these trends are expected to continue through the foreseeable future. (30) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • AIMS 46 314 Site Analysis Subject Plat Map APN 649.07, Riverside County, CA Onyx — A r N ® wr" ` A.J !• ',!N •MACM4 N ; 1d 11� N^ N f A Or A ki LN Ir- 10 N R� ayN lit ` N000# ?b / I I (31 ) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAmRS.e ANALYSTS • �� " �F� 315 Site Analysis Subject Plat Map APN 649-09, Riverside County, CA wow 19 • '� V f I 1 O • Y i� .Y �y y 1• a 114 ,. a REAL ESTATE APPRAISERS • ANALYSTS 0 AW" 318 Site Analysis Subject Plat Map APN 64944, Riverside County, CA t , 99 0 O ®A 9A t Ov v Oq .h ti R I 1 V O � r � vb g (33) CAPITAL REALTY ANALYSTS REAL ESTATE Ar►RAIsm • ANALYSTS WSo" ^ 1 7 Site Analysis Accessibility: Street Improvements: Utilities:. Electricity: Gas: Very Good Asphalt paved Utilities are available by the following utility companies: Imperial Irrigation District The Gas Company Telephone: Verizon Water: Coachella Valley Water District Sewer: Coachella Valley Water District Flood Zone: According to the Flood Insurance Rate Map, Community Panel Number 060709 0005 B, dated August 19, 1991, the subject property is located in Flood Zone X. Zone X is defined .as follows; ' "Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot, or with drainage areas less than 1 square mile; and areas protected by levees from the base flood." Drainage: Surface drainage on the subject appears adequate. Hazards:, . Other than" the fact that some parcels abut the Whitewater storm channel, none noted. As a real estate appraiser, I am not qualified to evaluate the site for toxic waste or hazardous substances. Therefore, the property has been appraised as though free of such substances. (35) CAPITAL REALTY ANALYSTS 1 �/(� REAL ESTATE ArrRAMW • ANALYSTS • OISORS i. V Site Analysis Soils: Earthquake Hazard: The Appraiser was not provided with a soils. report for the subject property. This report assumes that there are no hidden or unapparent conditions to the soil or subsoil that would render the parcel more or .less valuable. " My physical inspection of the subject property . did ,not reveal evidence of obvious soils problems.. The:. Appraiser is not qualified to make a determination as to the existence or non-existence of hazardous materials on the subject. According to Plate 1A of the Seismic Geologic Map, dated January 19, 1982, revised 1988, the subject.' property lies within a boundary III Earthshaking Zone... The subject: property is not located in an Alquist-Pnolo,, Special Studies Zone, or in areas determined to be in a liquefaction hazard area. The subject is not located ;in. an Area of Potential Subsidence. School District: Desert Sands Functional In physical respects, the functional adequacy ,.of the Adequacy of the land "As Is" considered impaired due tot he Jefferson Site, "As Vacant": Street frontage, as both traffic and noise are negative value influences. Additional comments are located in the Highest and Best Use Analysis of this report. Special Resources: The course of normal data gathering and analysis, and a visual inspection of the subject, did not reveal any evidence of. natural, cultural, recreational or scientific resources present upon the subject site. Units of In the subject marketplace, vacant land of the subject's Comparison: size and type is typically sold on a per developable lot basis. The price per developable lot is. applied as the unit of comparison in the "As Vacant" condition. (36) CAPITAL REALTY ANALYSTS REAL EsTA,EA..RA1SEM.ANAL,M 51 9 1 Site Analysis Relationship to The subject property conforms to the existing uses in Adjoining the subject neighborhood, which include a mix of, older Properties: residential development, along with a significant amount of new residential development. The homogeneous zoning in this area leads me to conclude that SFRs will continue to be a conforming and me in fho ehrmrl +ArM_ (37) CAPITAL REALTY ANALYSTS RFAL ESTATE A"LusERs ANALYSTS • `ADVISORS J O 3 N Illilai'sk . #�# A� ■ [ � _�� ■� � � �,e __-._■■��&■ • . � %��$a��-•,�;� C ( 1 re Highest _ and Best Use Analysis Highest and Best Use is defined as: 1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of appraisal. 2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most.profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations, the highest and best use of land may be for parks, g reenbelts, p reservation, conservation, w ildlife habitats, a nd the like.' In estimating the highest and best use, there are essentially four stages of analysis: 1. Legally Permissible: What uses are permitted by zoning and deed restriction for the subject site? 2. Physically Possible: What are the physically possible uses for the subject site? 3. Financially Feasible: What physically possible and legally permissible uses will produce a .net return to the owner of the site? 4. Maximally Productive: Among the financially feasible uses, which use will produce the highest net return or the highest present worth? The following tests must be met in estimating the highest and best use: The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. To estimate the highest and best use, these tests are applied to the subject property (1) as if vacant and available for development, and (2) as presently improved. ' American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal (Chicago Illinois: American Institute of Real Estate Appraisers, 1984), Page 152 (41) CAPITAL REALTY ANALYSTS REAL ESTATE Arflwsus * ANALYSTS • "� 2 3 Hiohest anid Best Use Analysis "As If Vacant" Legally Permissible The legal restrictions that apply to the subject are the public restrictions of the City of La Quinta's RL, Low Density Residential zoning ordinance. A large number of similar zoned parcels have been successfully developed in area of the subject, with no atypical legal constraints. The legal constraints of the subject are considered reasonable and appropriate and would -not impair development of the site to its highest and best use. Physically Possible The subject parcels were subdivided and designed to be detached single- family residential lots, located on fairways of the Indian Springs Country Club. The size, shape, topography, and utility installations are all designed to support residential development. These aspects of the site represent the s tandard of a cceptability f or s imilar r esidential I ots. The I ots front o f Jefferson Street which is a major regional artery. The traffic impact and noise levels make these lots much less desirable as compared with neighboring residential lots, not located on Jefferson Street. While this feature does not prevent development, the lack of feasibility has prevented 8 of 22 lots from being developed. Financially Feasible call estimated with Financial feasibility for residential development. is typically a simple comparison of costs and benefits. If the cost to construct a prospective development exceeds the present value of the cash flows to be derived from the development, the proposed use is not considered feasible. Alternatively, if the present value of the expected income streams exceeds the cost to produce the proposed development, .the use is considered financially feasible. As described above, the fact that 8 f 22 lots remain undeveloped on Jefferson Street after over 40-years, while several hundred lots have recently been developed off Jefferson Street in the immediate area of the subject, suggests that financial feasibility for speculative development of residential units on the subject lots would not be financially feasible as of the date of value. Additional evidence is provided by the fact that no developers, owners, or lenders are risking debt and equity on new development n these lots. (42) CAPITAL REALTY ANALYSTS REAL ESTATE AMFRAISERS 9 AMLYM • /"soRS . Highest and Best Use Analysis "As If Vacant" Maximally Productive The physically possible and legally permissible uses for the subject property are present in the subject region. Other similar properties in the subject region have been successfully developed and absorbed.: As current financial feasibility for development does not appear adequate. as. Of the date of value, the most maximally productive use of the site. "As Vacant", is to hold the lots for investment until such time as development of the lots becomes financially feasible. "As Improved" All of the improved homes add an increment of value that exceeds. the current land value. Consequently, the highest and best use of the lots as improved is to remain as improved. (43) CAPITAL REALTY ANALYSTS REAL EsTATE ArPRAism • AwALysrs *A&rwRs325 2 5 Aaaralsall Process The first step in the appraisal process is to identify the appraisal problem. Every real property is different and there are many. types of values that can be estimated for any real property. For this appraisal assignment, the required. value estimate for the subject is as follows: ♦ Just Compensation For The Part Taken The definition of market value has been defined in the Purpose of the Appraisal section of this report. The subject property and the type of value desired have been identified. Through the appraisal process, it is my intent to present a properly supported value estimate for the subject property. The market data, analysis and conclusions presented in the appraisal report should cause a reasonable person to reach similar conclusions. There are three. traditional approaches to estimating market value for this property type. These are the Cost Approach, the Sales Comparison Approach and the Income Approach. The approaches to value, and their applicability to this analysis, are described. as follows; Cost Approach "A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure deducting accrueg depreciation from the reproduction or replacement cost; and adding the estimated land value plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property" interest being appraised."' The Cost Approach is considered most relevant when the improvements are new, as depreciation can be estimated with a reasonable degree of accuracy. Another case when the Cost Approach works well is when market conditions are such that the typical buyer would realize similar Yields b y b uilding n ew, o r a cquiring a n existing s et o f t mprovements. I n this case, the vacant subject parcels do not have any improvements with an associated cost. Consequently; the Cost Approach is not applied as a valuation method for the vacant parcels. The Cost Approach is applied to estimate the market value of the improved residential parcels.. . ° The Dictionary Of Real Estate Appraisal Third Edidw, Appraisal Institute 1993 Page 81 (44) CAPITAL REALTY ANALYSTS REAL ESTATE Armis RS • ANALYSTS • ADVISORS 58J? Appraisal Process Sales Comparison Approach 'The Sales Comparison Approach is the process in which a market value estimate is derived by analyzing the market for similar properties. and comparing these properties to the subject property. Estimates ofmarket. rent, cost, depreciation, and other value parameters may be derived in the other approaches to value using comparative techniques. Often, these elements are also analyzed in the sales comparison approachto determine (estimate) the adjustments to be made to the sale prices of the comparable properties. The comparative techniques of analysis. applied in the sales comparison approach are fundamental to the valuation process."O The Sales Comparison Approach can be a strong indicator when sufficient comparable sales data exists, and is generally the best technique available to estimate the market value of vacant land, such as the vacant subject parcels. Additionally, SFRs such as the improved subject parcels are typically acquired based on their comparability to functionally equivalent substitute properties. Consequently, the Sales Comparison Approach is applied to estimate the market value of all of the subject parcels. Income Approach "A set of procedures through which an appraiser derives a value indication for an income -producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in 2 ways. One year's income expectancy can be capitalized at a market -derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternatively, the annual cash flows for the holding p eriod a nd t he reversion c an b e d iscounted a t a s pecked yield rate."" Lacking improvements with income earning ability for the vacant parcels, and lacking sufficient rental comps for the improved parcels, The Income Approach is not applied for any of the subject parcels for this analysis. A reconciliation completes the analysis leading to the final value estimate.,, The Ar i 1 f Real Estate- Tenth EditionAppraisal Institute.,1992; Pape 367 ' The Di ovary Of Real Estate Appraisal, Third Edition, Appraisal Institute, 1993, Pape 178 " Note that corhputerized spreadsheets may be used In this report. Numbers are typically accurate to 6 decimal points and rounded to the nearest whole dollar or 100th of a percent. Manual calculation of totals may result in Insignificant (45) CAPITAL KEALTY AIVALYS'1b REAL ESTATE APPRAISERS • ANALYSTS •ISORS 327 Sales Comparison Approach The Sales Comparison Approach is the primary method applied to estimate the market value of all of the subject lots and homes. The Sales Comparison Approach is defined as follows: "A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been. sold recently, then. applying appropriate units of comparison and making adjustments to the sale . — prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available."" As described in the Market Analysis and Appraisal Process sections, 4 sales are applied to estimate the market value of the homes and lots. Two.sets of sales are included, One set of 4 sales is applied for the single-family homes, and another set of 4 sales are applied to estimate the market value of the fee simple estate in. the subject vacant lots. Since the same set of sales are common to all of the homes and lots, the sales are, described once in this section, as follows: Single Family Home Comparables Comparable Sale Number 1 Comparable sale number 1 is the March 5, 2003 sale of a 1,879 SF home located on Vista Grande. This home is located immediately east of the subject Henderson (APN: 649-141-001) property. This sale was selected for comparison as it is located on one of the .subject streets, and has a view over the wash of -the golf course. At 10,454 SF, this is one of the largest lots in the Tract. The .unit has a gated entry with a front -yard pool, which is common among several of .the subject SFR's. The unit has a split -bedroom floor plan and is on sewer. The unit sold for $235,000 and is not located on Jefferson Street, which is a positive locational attribute. The unit does have a long golf course view. The original asking price was $239,000. The unit was on the market for 6 days. +o The Dickmary of Real Estate Aboraisal,The Appraisal Institute (46) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 60 328 • • Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 2 Comparable sale number 2 is the November 2002 sale of a ' 1,928 SF home located on Fiesta Drive, west of Jefferson. The sale price was $225,000. This data item was selected for comparison because it is a 1964 vintage home, which has recently been extensively remodeled. Consequently, this sale should represent the top of the market for older homes such as many of the subject units; that have been well -maintained. This sale does not have Jefferson Street exposure, which is a positive locational quality. The remodeled items include the following: • Security System • New Carpet • New Tile Floors • Corian Kitchen Counters • New Tile Counters • New Sinks and faucets in baths • New vertical blinds • New FAU • New Dishwasher • New pool / deck Although the location off of Jefferson Street is superior, the lack .of golf course exposure .is a negative site attribute in comparison to the subject golf course lots. The original listing price was $259,000. The unit was on the market 80 days. (47) CAPITAL REALTY ANALYs*7 REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 61 320 Comparable Sale Number 3 Comparable sale number 3 is the February 2003 sale of a 1,935 SF home located on Cortez Lane, west of Jefferson Street. The sale price was $247,000. The original asking price was $279,500. The unit was. on the market for 63 days. The seller had replaced the original shake roof with a new tile roof just prior to the sale. Additionally, the pool and deck had recently been redone.. The home has shutters on all windows. These features required a downward adjustment in the upgrades category. The unit is a superior location :off of Jefferson Street. However, the lack of golf frontage is a negative site quality. This feature is partially offset by the fact that the unit has a very long view. Comparable Sale Number 4 Comparable sale number 3 is the May 2003 sale of a 2,444 SF home located on Roudel Lane, west of Jefferson Street. The sale price was $240,000. The original 'asking price was $299,950. The unit was on the market for 198 days. The long marketing time, and wide disparity between the listing and selling prices demonstrate the market resistance and price barrier for older improvements in this sub -market. This sale was selected to demonstrate a larger unit sale. Additionally, this is a very recent sale in the market. (48) CAPITAL REALTY ANALYSTS RP.AL ESTATE APPRAISERS • ANALYSTS • Amsms 62 330 Sales Comparison Approach Vacant Lot Comparables Comparable Sale Number 1 Comparable sale number 1 is located along. Hummingbird, just west of Jefferson Street. At 20,038 SF, this lot is large for the neighborhood. The lot sold on 4/22/03 for $63,500. The lack of Jefferson Street frontage is a positive feature. The lack of golf course exposure is a negative feature. Overall comparability is considered good. Comparable Sale Number 2 Comparable sale number 2 is the 8/13/01 sale of a 10,019 SF SFR lot, located just west of Jefferson Street. The sale. price was .$46,000. This data item is considered typical of lot values off the golf course, in the immediate area of the subject. Overall comparability is considered average. Comparable Sale Number 3 Comparable sale number 3 is an example of a larger lot, located in the Cove area of south La Quinta. Lacking sufficient sales from within the .immediate area of the subject, I elected led �°�e� ea homesale s such asm the ove area, those of where there are older homes m the subject. area. However, the Calle .Tampico location is considered superior. The lot sold on 1/16/03 for $80500. Comparable Sale Number 4 Comparable sale number 4 is a 6,098 SF SFR lot sale taken from Laguna De La Paz. This sale was selected for comparison, as the lot fronted on the lake, which is considered to be of a similar value as compared with a golf course exposure. The development is gated. The lot sold on 1/23/03 for $73,000.Overall comparability is considered average. Valuation Sections The following sections outline the valuations for each of the subject parcels: (49) CAPITAL REALTY ANALYSTS REAL ESTATE A"Rmsm • ANALYSTS • ADvISORS 331 ao • Floor b g 46200 Jefferson Sb*M 46200 J*ftmon SV" UA b Jry Y.P `'p �ry 'b 73.V ii 7D.0 Pool ./ 2 Cw Garage �a L?JW AREA BREAXDMN r.rr.■■ •�{.rr N f1■■■ !.• ■ N.! 1N.N lf,! ■ 7f.! fN.M f.{ ■ {•i U.M i.! ■ l.f • !.• l.M !!.f ■ N.! ifl.M . N.! ■ 7f.! !U •!f i.! ■ {{.f 1l.N i,! ■ N.! lfl.N f.! ■ f.i U.M !.f ■ l.{ ■ l.f f.M !.! ■ l.i ■ f.! /.N f.f ■ L.! lN.N IL TOTAL WABLE pow�dfal I 2Ss7 I I U COMAs"s TdN ( 7333' r.N sRr ems{ —'�o�K r rwre.r p�*+ iiA� b w � � — �.+o►Kwnoc (1 29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS ■ ANALYSTS ■ ADVISORS 65 333 Cost Approach Address: 46200 Jefferson Street APN: 649-090-002 Estimated Site Value: $ 72,000 Estimated Reproduction Cost New: SF Cost Extension Dwelling 2,333 $ 59.15 $137,997 Pool/Spa 1 $ 20,000 $ 20,000 Other - $ - $ - Garage 500 $ 15.71 $ 7,855 Multiplier 1.1413 Total Cost New $ 261,287 Physical Depreciation 33.33% $ 55,284 Functional Depreciation 0•00% $ External Depreciation 0.00% $ Depreciated Value $ 206,003 Site Improvements $ 359000 Total Cost -Based Value $ 241,003 $241,003 $241,000 (Rounded) (Two Hundred Forty One Thousand Dollars) (1 30) CAPITAL REALTY ANALYSTS REAL ESTATE A"RAIsm • ANALYSTS • ADVISORS 66 334 a v N J 8 p ag H 4ON ... .N.. N �p !0 zO cHr►c5c'n �N�N CNiato A VN ... N .r Z N U. N N N N N N N N 8O p p ass pN » p 8O p p o N N N M �j N N Ms. t o ZS W E E_ gg1i _E e� N ago. C� N gO C M H 9y a O OO�� O N Z y N � - Z ` �j S N N N C7 Z a a a N CL V o C� C a IL e M r 67 335 Conclusion The cost -based indicator came in at $241,000. The Sales Comparison -based indicator came in at $228,000. This home appeared to be in average condition for its effective age. Most emphasis is placed on the Sales Comparison Approach. Based on the available data, it is my opinion that the market value of the subject property, based on the definition of market value described in the introduction section of this report, is as follows: $2281000 (Two Hundred Twenty Eight Thousand Dollars) (132) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 68 336 i Certification certify that, to the best of my knowledge and belief, The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported. assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no.personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined . value or direction in value that favors the cause of the client, the amount of the value estimate. the. attainment of a stipulated result, or. the occurrence or a subsequent event. My analysis, opinions and conclusions were developed, and this report" has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person(s) signing this report. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appreisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of.the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration bate: October 24, 2005 (177) CAPITAL REALTY.ANALYSTS REAL ESTATE ARRMSEU • ANALYSTS • ADVISORS 69 337 Addendum (178) CAPITAL REALTY ANALYSTS Rm ESTATE ArmtAISM • ANALYSTS • ADVISORS 70. 338 Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to. be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The. information furnished by others. is believed to be reliable. However, no warranty is given for its ' accuracy. The appraiser reserves the right to make adjustments to the analyses,opinions and conclusions in this report, as may be required by consideration of additional or revised data that may become available. 5. All engineering Is assumed to be correct. The plot plans and illustrative material in this, report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance withall applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered In the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions u nless n onconformity h as b een i dentified, d ascribed a nd c onsidered i n the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative -authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or .may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed fore such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. (179) CAPITAL REALTY ANALYSTS REAL ESTATE Apmusmts • ANALYSTS • ADviSOn 71 339 Assumptions and Limiting Conditions 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid 9 so used. 13. Except for use in the official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The' appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. . 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, t he i dentity o f t he a ppraiser, o r t he f irm w ith which t he a ppraiser 19 c onnected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 16. Improved Properties - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. 1 (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of S n� �If so have fed direct have a negative effect upon the value of the property. evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to the Appraiser(s), and described in the Improvement Description section of this report. 18. The legal descriptions, site sizes, dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. (1 80) CAPITAL REALTY ANALYSTS RLAL E.ttATE APPL 1SEM • ANALYSTS • ADVISORS 72 340 MICHAEL A. SCARCELLA, MA1 Education._ 1982 B.S., Business, University of Nevada, Las Vegas 1991 - Real Estate Appraisal Principles 1992 - Basic Valuation Procedures 1992 Standards of Professional Practice 1993 - Basic Income Capitalization', 1993 - Advanced Income Capitalization 1994 - Report Writing & Valuation Analysis 1995 .Advanced Applications 1996 .- Federal & State Laws & Regulations 1997 - Standards Part A & B 1997 - Property Management 1997 Real Estate Economics 1997 -Real Estate Finance 2000 -Report Writing 2001 - Tax Free Exchanges Professional Organizations/Licensing Member of the Appraisal Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser'. Office of Real Estate Appraisers, Appraiser Identification Number AG 019463 ' Appraisal Institute — So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee;. 1999, 2000 So. Cal. Chapter Ethics Committee FAA Certificated Pilot #551317536 General Experience 1997 to Current Capital Realty Analysts — President .1991 to 1996 - MacKenzie and Associates — Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court .Representative List of Clients United Stat$S UT America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta P.S. Unified School District Desert Sands School District Southern California Edison Mojave Water Agency Desert Hospital rncxs VVOLW111WUO1O Merrill Lynch CB Commercial Textron Bechtel Corporation. KSL Recreation Corp. United States. Filter Sunrise Company Canyon Development Magellan Corporations Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Institute of the Desert Basic Capital Management Developers Attomeys Accountants Home Savings Wells Fargo Bank El Dorado Bank Washington Mutual Bank Bank Midwest Pacific National Bank Canyon National Bank Banc One Fidelity Federal Bank Bankers Trust Company First Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Foothill Independent Bank Valley Independent Bank First Bank (181 ) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 73 NOTIFICATION OF RIGHT TO CLAIM LOSS OF BUSINESS GOODWILL The City wishes to acquire a portion of the property situated at (Address), California for the purpose of the Jefferson Street Widening .Project, Phase 2. You have received this "Notification of Right to Claim Loss of Business Goodwill" because you have been identified as the owner of the property. In certain circumstances, the owner of a business operating on property subject to eminent domain may be entitled to claim compensation for loss of business goodwill, when it can be shown the loss is caused by the acquisition of property by the acquiring public entity, or by the project for which the property is sought to be taken. The City's offer of just compensation included in this letter does not include any amounts for loss of business goodwill. If you own or operate a business on the property which is the subject of this offer letter, you are requested to review this "Notification of Right to Claim Loss of Business Goodwill," and the "Claim for Loss of Business Goodwill," and "Loss of Business Goodwill Questionnaire" attached hereto. If you do not own or operate a business on the property, but know of a person or entity who does, you are requested to notify the City with the name, phone number, and address of such person or entity, so that these forms can be forwarded to the appropriate party. California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.510 of the California Civil Code of Procedure states: (a) The owner of a business conducted on the property taken, or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property of the injury to the remainder. 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill. 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code.' 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. 1 Section 7262 of the Government Code refers to compensation to displaced persons for moving and related expenses as a part of the cost of the acquisition of real property for a public use. Compensation for the loss of goodwill under Section 1263.510 of the California Civil Code of Procedure will only be made to the extent such loss is not compensated for under Section 7262. For more information regarding a business owner's eligible payments under the Relocation Assistance Program, please call Kathy Woolley at 760-772-4255. 119/015610-0008 -7- 74 3402 419373.01 a07/29/03 (b) Within the meaning of this article, "goodwill' consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstance resulting in probable retention of old or acquisition of new patronage. If you wish to file a claim for loss of goodwill at this time, please complete, sign, and return the attached Claim for Loss of Business Goodwill and Loss of Business Goodwill Questionnaire within sixty (60) days of the date of this notice. In addition, please submit the information requested below. This information will assist the City in completing an analysis concerning the claim for a loss of goodwill. However, if you wish to wait until a later date to make a claim for loss of goodwill, please send us the claim, questionnaire and the other requested information at that time. 5. State of California Income Tax Returns The law places the burden upon the business owner to provide state tax returns pertaining to the business to support the claim for loss of goodwill. Please supply true copies of your tax returns for the last five tax years, or your period of ownership if less than five years. 6. Business Financial Statements Please provide true copies of your Balance Sheets, Profit and Loss Statements and/or Cash Flow Statements for the current year to date and each of the prior five years or your period of ownership, if less than five years. 7. Tanoible Assets Include a list of the furniture, fixtures, machinery and equipment belonging to your business. Please use the itemization sheet attached to the questionnaire. 8. Intangible Assets Include a list of such assets as patents, liquor licenses, etc. Please use the itemization sheet attached to the questionnaire. .9. Business Purchase Documentation If you have purchased the business within the last five years, please provide true copies of documentation (escrow instructions, purchase agreement, bill of sale, etc.) which provide details of the transaction including financing, the assets purchased, agreements not to compete, and how the total purchase price was allocated to inventory, fixtures, equipment, licenses, goodwill, etc. A loss of goodwill analysis and valuation normally, includes a personal interview with the business owner. An interview will be scheduled after we receive the, requested information. 119/015610-0008 -8- 75 343 419373.01 a07/29/03 CLAIM FOR LOSS OF BUSINESS GOODWILL Business: Business Address: This form and the attached completed, signed questionnaire with tax returns and other supporting documentation constitute formal notification to the City, that the owner(s) of the above business entity contend(s) that the business will suffer a compensable loss of business goodwill due to its displacement or disruption by the proposed project. 1. Our estimate of total goodwill is $ 2. Our estimate of the compensable loss of goodwill is 3. The loss of goodwill after taking measured to minimize the loss is caused by: 4. The following measures will minimize the loss of goodwill: The undersigned owner or duly authorized officer has executed this notification on behalf of this business operation. Name: Date Title: Address: 119/015610-000B -9- 7 c 419373.01 a07/29/03 6 3 LOSS OF BUSINESS GOODWILL QUESTIONNAIRE Business Owner: Business Name: Business Address: Type of Ownership: Business Identification Number: 1. What type of business do you operate? What type of products are sold or manufactured? What type of services are provided or sold? 2. When was the business started? 3. When did you obtain ownership of the business? 4. How long has the business been at the above address? $. What type of clientele does the business have? Do you have key customers or clients? 6. From what geographic area does the business draw its patronage? What percentage of the business volume is drawn from each of those areas? 7. Does the business operate at any other location? If so, where and what percentage of total business volume is generated from each of the other locations? 8. Is the business part of a chain? Is it a franchise? If so, provide details including fees, marketing agreements, etc. 9. Who are the business's major competitors? Where are they located? (If more room is needed for any answers, please insert additional sheets and continue by number.) 1191015610-0008 _ 1 Q_ 77 3 d J 419373.01 a07/29/03 j 10. How many days a week is the business open? What are its hours of operation? 11. How many persons are employed by the business? Please provide the following? osition Days/Week Worked Hours/Week Worked Lay Owner Manger Others (list by job title) 12. What were the main factors you considered in operating your business at the present location? What are the locations' advantages? Disadvantages? 13. What improvements did you make to the present location in order to open for business? 14. If you are a tenant, to what improvements do you claim ownership? 15. Were there any special requirements to open for business, e.g., rezoning, permits, special use permits, health and safety permits, environmental report, etc.? Please provide details. 16. What area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 17. If you are a tenant of the area you lease, how much, if any, is not used in your current business operation? Land sq. ft. Improvements sq. ft. 18. What future plans (expansion, etc.) do you have for the business? Please give specifics. 19. Did you have any prior plans to relocate the business? If so, where and when? 20. What would be your site and building requirements at a new location? a. Type of building (freestanding, strip center, storefront, etc.): b. Building size: C. Site size: d. Site distance from existing location: e. Parking requirements: f. Utility requirements: g. Loading docks? Truck? Rail? 119/015610-0008 _11_ 78 yx 419373.01a07/29/03 h. Other special plant, service, or locational needs: i. Monthly rental (range): 21. Describe what problems, if any, you foresee in re-establishing the business? 22. Have you looked for or found a replacement location because of the State's project? Have you made any relocation plans? If so, provide details. 23. What, in your opinion, is the market value that a knowledgeable buyer would pay for your present business? Allocate as follows: Value of the tangible assets: $ Value of the intangible assets: $ Value of the goodwill: $ Total value: $ 24. What is your estimate of loss of the goodwill which may result from relocation or disruption of your business? 25. What do you believe would cause this loss of goodwill? Do you believe the loss would be temporary or permanent? 26. What reasonable steps can you take to avoid or reduce this loss of goodwill? 27. How would you perform these steps? 28. What do you think the cost of these steps would be? 119/015610-0008 -12- 79 347, 419373.01 a07/29/03 • • If you have already relocated or will remain at the existing location but have suffered a disruption in your business at the time you submit your claim, please answer the following questions: 29. The address of the new location (if applicable). 30. Date business closed at the old location and the opening date at the new location. 31. Price paid for new location or copy of lease/rental agreement. 32. Improvements made and their individual cost in order to reopen (or continue) business. 33. In its relocated or disrupted state, what area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 34. Hours of operation at the new location. 35. How many persons are employed in your relocated or disrupted business? Please provide the following: Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 36. Market area served at new or disrupted location. 37. Customers lost, if any at new or disrupted location. 38. Number of new customers at new or disrupted location. Please include the signature of person preparing the answers to this questionnaire and nature of interest in the business. Name: Interest: Date: 119/015610-0008 _13_ 80 348 419373.01 a07/29/03 • ATTACHMENT 2 TitT 4 4 a" , P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 December 29, 2003 Robert Loris Culp Elaine Louise Culp 46200 Jefferson Street La Quinta, CA 92253 (760) 777-7000 FAX (760) 777-7101 Re: ASSESSOR'S PARCEL NUMBER 649-090-002 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46200 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46200 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-090-002 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in 119/015610.0009 439250.01 a12/24/03 1 IU 8D 349 Robert Loris Culp Elaine Louise Culp December 29, 2003 Page 2 the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495. Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental 119/015610-0008 82 458250.01 a12/24/03 350 • • Robert Loris Culp Elaine Louise Culp December 29, 2003 Page 3 Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yours, M. Ka erine Jenson City Attorney, City of La Quinta Attachment 119/015610.0008 83 3 J 1 459250.01 al=4/03 11 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 38 Of Tract 2190, As Per Map Recorded In Book 41, Pages 55 Thru 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-090-002 84 352 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP 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 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46200 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Robert Loris Culp Elaine Louise Culp 46200 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collection and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same day in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I am confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after date of deposit for mailing in affidavit. Executed on December 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. 25 26 27 28 20461015610-0008 463467.01 a12/29/03 Lauren Yersick (Type or print name) 85 353 '°. 1, I , . � I _s'ib\r ■ anw � '�irotr aiiw . — .: I I A M 1 , etlowestbu a 1 LI .fi 1� 1 rl \I mtat 354 86 ( ATTACHMENT 4 WP-Qt-ward Igo Property Owners' Association rIAA _V o• La Quinta City Council Members C* An From: Jefferson Street Property Owners Date: 3 h 2, o y Dear Council Members; n> The property owners on Jefferson Street that will be attr..ted by the road widening, wish to bring this informative letter to the attention of the La Quinta City. Council. Cd,"t.- v There are i & homes and SS lots between the wash and Westward Ho Drive. The names that appear below have stated they prefer to have their homes and lots purchased by the City under Eminent Domain. The owners on both sides of Jefferson Streelk-,hove shown a majority of signatures below. This fact would make the case for widening the street equally on both sides rather than bend it either way. 1. Name �.• Address 2. Name,. Address YE ire 3. Name Address ell 4,�* 4. Name , y Address S. Name aa4ke Address !G f 7 d .9„&& 17 v� 6. Name ' Address •�� . i 7. Name Address ' -- R . 5,- 0 a h � t' r- /, er 355 I Westward Ho Property Owners' Association S. Name � a e Address 41 o — ,-) 9. Name Addre 10. Name Addri 11. Name Add n 12. Name Addre 13. Name Addre 14. Name Addre 15. Name Addre 16. Name Address 17. Name Address 18. Name Address - 5 , 3 5*6 79860 Fiesta Drive • La Quinta, CA 92253 0 (619) 347-8351 4 1,. we 9— W14,I SYI -.. FAM �y �p N w co a z N �w w LL LL �W 0 0 .Z 0 U 88 3 01/92/2004 12:50 FAX 7807771233 LA QUINTA COMM. BEV. + KATHY JENSON 1a 002/004 ATTACHMENT 6 PLANNING COMMISSION RESOLUTION 2003-059 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING FINDINGS OF CONFORMI[TY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 05402, FOR A POTENTIAL ACQUISITION OF PROPERTY FOR THE WIDENING OF JEFFERSON STREET. GENERAL PLAN CONFORMITY FINDING APPLICANT: CITY OF LA QUINTA WHEREAS, said Section 65402 requires the jurisdiction's planning agency's (i.e., Planning Commission) review and report upon whether the proposed acquisition of real property for public purposes Is consistent with the adopted General Plan; and WHEREAS, the Planning Commission of the City of La Quints, California did on the 12th day of August, 2003, hold a pubic meeting to consider a finding of conformity with the General Plan for said potential Project Site, more particularly described as, APN: 649-071-008 THROUGH 021 AND 029; 649-090-001 THROUGH 009; AND 649-141-001 WHEREAS, the Planning Commission did make the following findings of conformity with respect to the proposed project: The proposed acquisition is in conformance with the La Quinta General Plan, as follows: 1. LAND USE ELEMENT: The recently adopted General Plan Land Use Element designates the properties as Low Density Residential (LDR), up to four dwelling units per acre. The Element indicates the need to maintain compatible high quality land uses. The widening of Jefferson Street will not alter the surrounding land use designations, and Is consistent with the Element. 2, CIRCULATION ELEMENT: This Element designates Jefferson Street as 'a Major Arterial Road with a 120 foot width right-of-way. This project will allow the street to be expanded to comply with this Element. 3. OPEN SPACE ELEMENT: No key planning issues or policies are identified. 4. PARK AND RECREATION ELEMENT: No key planning issues or policies are identified. 89 358 01/t2/2004 12:50 FAX 7807771233 LA QUINTA COMM. BEV. + KATNY JENSON IM 003/004 Planning Commission Resolution 2003-039 Jefferson street Widening - General Plan Conformity Finding Adopted: August 12, 2003 Page 2 S. ENVIRONMENTAL CONSERVATION ELEMENT: No key planning issues or policies are identified. e. NATURAL RESOURCES: This Element provides several policies and programs designed to protect and preserve the unique and/or valuable resources, including biologic resources. The properties at issue are disturbed. To the extent applicable, this project will be subject to the requirements of the Coachella Valley Fringe -Toed Lizard Fee Mitigation Program and other applicable mitigation measures. 7. INFRASTRUCTURE AND PUBLIC SERVICES ELEMENT: No key planning issues or policies are identified. 8. ENVIRONMENTAL HAZARDS ELEMENT: This Element indicates that the site is within an area that is susceptible to wind-blown sand, collapsible soils, potential liquefaction hazard, and seismically induced settlement. If the properties are acquired, the widening of Jefferson Street will meet all applicable engineering requirements, and the street and landscape improvements will reduce the potential for blowsand in the vicinity of the subject property. 9. CULTURAL RESOURCES ELEMENT: No key planning issues or policies are Identified. 10. HOUSING ELEMENT: As a result of widening Jefferson Street the project requires acquisition of residential and vacant lots. Acquisition of the residential properties will not displace substantial numbers of people or existing housing, and will not necessitate the construction of replacement housing elsewhere, because the acquisition involves a relatively small number of properties and the current housing conditions reveal that there is more than adequate existing housing In La Quinta to accommodate the displaced households. Likewise, state mandated relocation benefits will be paid to applicable displaced persons In accordance with the Uniform Relocation Assistance & Real Properties Act of 1970, as amended, and owners of the residential property will be compensated •. fair market value for their property,. determined on the basis of the highest and best use. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinte, California, as follows: 1. That the recitations are true and constitute the findings of the Planning Commission in this case; and P:losavJResolutions%rsso jefferson st,doc 90 359 01/22/2004 12:51 FAX 7807771233 LA QUINTA CONN. BEY. + KATHY JENSON IM004/004 Planning Co—loslon Resolution 2003.059 Jefferson Street Widening - General Plan Conformity Finding Adopted: August 12, 2003 Page 3 2. That it does hereby adopt this finding of conformity for the reasons set forth in this Resolution, and as shown on the Map attached hereto as Exhibit "A". PASSED, APPROVED and ADOPTED at a regular meeting of the La Quints Planning Commission held on this 12th day of August, 2003, by the following vote to wit: AYES: Commissioners Abele, Daniels, Tyler, and Chairman Kirk NOES: None ABSENT: Commissioner Quill ABSTAIN: None TO IRK, Chairman tK of La Quinta, California jJ TTEST: RRY H MAN, Community Development Director ity of La Quints, California p.wsomossolutionsVeso Jefferson st.doo 91 360 V r S ' 4S OF Tt�9 COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Public Hearing to Consider Adoption of a Resolution Declaring the Public Interest and Necessity of Acquisition of Property Located at 46-250 Jefferson Street, La Quinta, California (APN 649-090-003), for Jefferson Street Improvements, Phase II, Highway 1 1 1 to Indio Boulevard, Project 2000-19 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of property located at 46-250 Jefferson Street, La Quinta, APN 649-090-003, for the purpose of improving Jefferson Street. FISCAL IMPLICATIONS: The appraised fair market value of the property proposed for acquisition is $232,000. The property owner will not be entitled to relocation benefits since she does not reside at the property. The tenants may or may not be entitled to benefits. As of this date, they have not responded to notices and inquiries from the City's relocation consultant. Additional costs will be incurred in legal fees, appraisal fees and court costs relating to the initiation of eminent domain proceedings if the Resolution is approved and the matter proceeds to court. The proposed Jefferson Street Phase II improvements are funded in accordance with the Reimbursement Agreement and Memorandum of Understanding between the City of La Quinta, the City of Indio, the County of Riverside, and the Coachella Valley Association of Governments ("CVAG"), as amended. The overall project costs for the Phase II improvements are estimated at $16,700,000. CVAG has agreed to pay 75% of these costs. The remaining 25% will be paid by the jurisdiction in which the improvements are constructed. The City of La Quinta's funding contribution (25% of the project costs within its jurisdiction) is estimated at $2,797,250. Of this amount, r9C the City has been provided a credit in the amount of $963,000 from State Transportation Improvement Program funding obtained by the City to offset the costs of the newly included bridge across the Whitewater River. The City has also been provided a credit in the amount of $1,647,184 as repayment for the regional share advanced by the City for the Washington Street Improvements. The City shall be responsible for repaying any balance of its portion of the proposed improvements minus its credit in the amount of $2,610,184. Considering the City's estimated costs are $2,797,250, the City's out-of-pocket share will be approximately $186,466. However, the City's actual contribution will be calculated based upon the project's final costs. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff proposes, for the City Council's consideration, and recommends approval of, a Resolution of Necessity to authorize acquisition of the property located at 46-175 Jefferson Street, within the city limits of the City of La Quinta. The property is to be utilized for the widening of Jefferson Street, Project 2000-19. This property was appraised by Michael A. Scarcella, MAI, of Capital Realty Analysts. Mr. Scarcella reviewed the applicable market data, identified and analyzed relevant comparable sales, and issued his opinion that, as of the date of value (June 10, 2003), the fair market value of the property was $232,000. A legal description of the property referenced in the proposed acquisition is attached to the Resolution as Exhibit A. Staff obtained title information reflecting the vesting of the property from Chicago Title Company, and an offer to purchase the property for the full amount of the appraised value was sent to the record owner on July 30, 2003. The offer letter transmitted all comparable sales upon which the appraiser based his opinion of value and the relevant parts of his appraisal report. A copy of the offer letter is provided as Attachment 1. Staff, the City's right-of-way consultant (Overland, Pacific & Cutler, Inc.), and the City Attorney have communicated with the owner in an attempt to review any information the owner may have regarding value, and to work towards the goal of reaching an agreement on the transfer of the property by way of a negotiated acquisition. As of the date of this report, no such agreement has been reached. As such, staff is now recommending the City Council consider and adopt a Resolution of Necessity, authorizing acquisition of the property by exercise of eminent domain. K 3f Under Code of Civil Procedure Section 1245.220, the City may not commence an eminent domain proceeding until the City Council has adopted a "Resolution of Necessity." As a part of the Resolution, the City Council must find and declare each of the following: 1. The public interest and necessity require the proposed project. 2. The proposed project is planned or located in the manner that would be most compatible with the greatest public good and the least private injury. 3. The property described in the Resolution is necessary for the proposed project. 4. An offer meeting the requirements of Government Code Section 7267.2 has been made to the owner of record. The owner of the property is entitled to be heard on this subject, and on the issue of whether the City has followed all other procedures and is otherwise authorized to acquire the property by exercise of eminent domain. Notice to the property owner of this Resolution of Necessity hearing, and the subjects to be considered and proposed to be determined, was sent to the record owner on December 29, 2003. A copy of this notice is provided as Attachment 2. As of this date, the City has received no response from the property owner relating to this hearing. The Public Interest and Necessity Require the Proposed Project The acquisition of the property is proposed for the Jefferson Street Improvement Project, Phase II, Highway 111 to Indio Boulevard. The project will include the widening of Jefferson Street from two lanes to a six -lane, arterial highway, with a typical 120' cross-section. A diagram showing the extent of the project is submitted herewith as Attachment 3. Staff believes that the public interest and necessity require the Jefferson Street Improvement project. A traffic analysis was conducted by Mr. Robert Ross, P.E., of RBF Consulting, a copy of which is included as Appendix 8.1 of the 1999 Initial Study/Mitigated Negative Declaration for the project, which is being transmitted to the City Council under separate cover. Pursuant to the Coachella Valley Area Transportation Study, the Valley is one of the fastest growing areas in Southern California, and is expected to increase to over 312,000 by the year 2010. The project is necessary to accommodate the projected growth and population increase and to accommodate safe traffic movements. Staff concurs with Mr. Ross' assessment. 3 363 The Proposed Project Is Planned Or Located In The Manner That Will Be Most Compatible With The Greatest Public Good And The Least Private Injury The improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway, providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The widening of Jefferson Street is designed to relieve regional traffic congestion and improve the capacity of the street, which will require continuity in the roadway alignment and traffic handling capacity of the street. The project also improves an important linkage to Highway 111 and the 1-10 for existing and proposed residential, commercial and resort uses in La Quinta and Indio. The project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including enhanced safety during flood events. In addition, the bridge will provide additional opportunities for wildlife movement and habitat access. The project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from the roadway. On January 22, 2003, the City received a petition signed by many of the affected property owner, including the owner of the property which is the subject of this public hearing. The petition was in support of the chosen alignment. The persons signing the petition indicated that they preferred to have the symmetrical widening of the roadway, and that they "prefer[ed] to have their homes and lots purchased by the City under Eminent Domain." A copy of the petition is provided as Attachment 4. These facts support the finding that the project is designed in a manner compatible with the greatest public good and the least private injury. The Property Described In The Resolution Is Necessary For The Proposed Project As is shown on Attachment 5, the proposed widening of Jefferson Street would require that the right-of-way extend right up to the single-family home on the subject property. It would not be practical or safe to widen Jefferson Street without acquiring the subject property and demolishing the home. Acquiring the property is therefore necessary for the project to proceed. Other Requirements The project has been reviewed and approved under the California Environmental Quality Act ("CEQA"). Originally, the project was reviewed in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66. 4 364 On August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements. On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21152 of the Public Resources Code. In considering the Resolution of Necessity, the City Council should consider the environmental information contained in the Addendum, along with information in the 1999 IS/MND. Both documents have been distributed to the City Council under separate cover. In addition, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003- 059 reflecting such findings. A copy of that Resolution is provided as Attachment 6. Lastly, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development as required by law. Therefore, all of the legal prerequisites to the adoption of a Resolution of Necessity have been satisfied. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-250 Jefferson Street, La Quinta, APN 649-090-003, for the purpose of improving Jefferson Street; or 5 365 2. Conduct a public hearing and do not adopt of a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-250 Jefferson Street, La Quinta, APN 649-090-003, for -the purpose of improving Jefferson Street; or 3. Provide staff with alternative direction. Respectfully submitted, 4. ____ K LnA.4�� T*o:tlhjy R. Jo ass , P.E. Public Work ire r/City Engineer Approved for submission by: f Thomas P. Genovese, City Manager Attachments: 1. Offer letter 2. Notice of Resolution of Necessity Hearing dated December 29, 2003 3. Project Diagram 4. Petition of Jefferson Street homeowners dated January 22, 2003 5. Property Area Map 6. Planning Commission Resolution No. 2003-059 C 366 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-250 JEFFERSON STREET, LA QUINTA, CALIFORNIA (APN 649-090-003) FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, PROJECT 2000-19 WHEREAS, the City of La Quinta has been investigating potential acquisition of property located at 46-250 Jefferson Street, in the City of La Quinta, bearing Riverside County Assessor Parcel No. 649-090-003, and more specifically described in the legal description attached hereto as Exhibit "A," which is incorporated herein by reference ("Property"); and WHEREAS, the City has been investigating potential acquisition of this Property for the widening of Jefferson Street, specifically the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 ("Project"); and WHEREAS, on February 3, 2004, after no less than 15 days written notice to the record owners of the Property, as shown on the title information obtained by the City, and the last equalized assessment roll, the City Council of the City of La Quinta held a public hearing for the purpose of considering, and allowing the record owners of the Property a reasonable opportunity to appear and be heard on, all of the following matters: A. Whether the public interest and necessity require the Project; B. Whether the Project is planned or located in a manner that is most compatible with the greatest public good and the least private injury; C. Whether the Property proposed to be acquired is necessary for the Project; D. Whether the offer required by Government Code § 7267.2 has been made; and E. Whether the City has properly exercised all of its statutory responsibilities and duties antecedent to the legal exercise of eminent domain against the Property; and 119/015610-0008 7 367 471124.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 2 WHEREAS, the City Council has received various factual information bearing upon each of the matters referenced above, including but not limited to, the representations made within, and evidence attached to, the staff report prepared by staff for consideration in connection with the hearing; and WHEREAS, the City Council, as a result of such hearing, has determined that the public health, safety, and welfare require that the City acquire fee interest in the Property for the purposes of the widening of Jefferson Street; and WHEREAS, the Project was originally reviewed and approved under the California Environmental Quality Act ("CEQA") in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66; and WHEREAS, on August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements; and WHEREAS, on August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code; and WHEREAS, in considering the Resolution of Necessity, the City Council has considered the environmental information contained in the Addendum, along with information in the 1999 IS/MND; and WHEREAS, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003-059 reflecting such findings. WHEREAS, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by 119/015610-0008 $ 3 8 471124.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 3 Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development. WHEREAS, the City of La Quinta is authorized to acquire the Property for street improvement purposes under the authority of its own charter, and under the authority granted by Government Code Sections 37350.5 and 40404. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. The recitals set forth correct are true and correct and are adopted as the findings of the City Council. 2. The Project for which the acquisition of the Property is required is the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard Project. The project will include the widening of Jefferson Street from two lanes generally to a six -lane, arterial highway, with a typical 120' cross-section. 3. The Property to be acquired is located within the City of La Quinta, County of Riverside, State of California, located at 46-250 Jefferson Street, in the City of La Quinta, bearing Assessor Parcel No. 649-090-003. The Property the City seeks to acquire consists of fee simple title to approximately 7,841 square feet of land, more specifically described in the legal description attached hereto as Exhibit "A". 4. The public interest and necessity require the Project, in that it is consistent with the City's General Plan, and specifically the City's Circulation Element. The City Council hereby adopts the finding set forth in Planning Commission Resolution 2003-059. Pursuant to the Coachella Valley Area Transportation Study, the Valley's population is one of the fastest growing areas in Southern California and expected to increase. This project is necessary to accommodate the projected growth and population increase and accommodate safe traffic movements. 5. The Project is located in a manner most compatible with the greatest public good and the least private injury, in that the improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The proposed Project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including during flood events, and providing additional opportunities for wildlife movement and habitat access. The proposed Project will result in the least private injury because the 119/015610-0008 A 3 6 - 471124.01 a01/28/04 9 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 4 right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from roadway construction and operation of habitable structures. The Project is designed in a manner compatible with the greatest public good in that the Project will involve road widening so as to improve an important link between Highway 1 1 1 and 1-10. 6. The Property to be acquired is necessary for the Project, in that the Project is designed to relieve regional traffic congestion and improve the capacity of the street which will require continuity in the roadway alignment and traffic handling capacity of the streets. 7. Portions of the Property sought to be acquired include area outside of the proposed alignment of the Project's proposed roadway and public right-of-way improvements. Pursuant to Code of Civil Procedure sections 1240.410, the City Council finds that such property will be left in such size, shape, or condition to be of little market value, and this constitutes a remnant whose acquisition is authorized under the above -referenced statute. This remnant finding is supported by a petition submitted to the City through the course of project planning, requesting selection of the project design alternative which resulted in full acquisitions as currently planned for the Project. 8. The offer required by Government Code Section 7267.2 has been made to the owner of record, by way of a letter dated July 29, 2003. City staff has attempted to negotiate with the record owners and their representatives subsequent to the issuance of this offer, but the negotiations have not proved successful in securing the necessary property interests. 9. Notice of the resolution of necessity hearing was provided to the owners of record by way of mailed, written notice sent on December 29, 2003. 10. To the extent any of the Property to be taken herein is devoted to a public use, the City finds that the proposed use for the Property is compatible with, or more necessary to, such public use, and that the City is authorized to acquire the Property pursuant to Code of Civil Procedure Section 1240.510 and 1240.610. 11. The City Council hereby declares its intent to acquire fee simple ownership of the Property, more specifically described in Exhibit "A" hereto, in the City's name in accordance with the provisions of the laws of the State of California. 12. The Project has been reviewed and approved under CEQA through the 1999 IS/MND and the Addendum thereto. The City finds that as reflected in the 119/015610-0008 .� O 471124.01 a01/28/04 0 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 5 Addendum, that there have been no subsequent changes with respect to the circumstances under which the Project is to be undertaken, no new information of substantial importance regarding significant effects or mitigation measures or alternatives which has become available, and no subsequent changes have been proposed in the Project which would require further environmental review. 13. The law firm of Rutan & Tucker, LLP, City Attorney for the City of La Quinta ("City Attorney"), is hereby authorized and directed to prepare and prosecute in the name of the City such proceedings in a court having proper jurisdiction thereof, as may be necessary for the acquisition of the Property described herein, including without limitation, seeking prejudgment possession of such Property, and to prepare and file such pleadings, documents, and otherwise prosecute such actions as may be necessary in the opinion of the City Attorney to acquire the Property for the City. Such attorneys are specifically authorized to take whatever steps and/or procedures as are available to them under the Eminent Domain Law of the State of California, relating to acquisition of the Property. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3rd day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD 0. ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: 119/015610-0008 .� .� 371 47 1124.0 1 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 6 M. KATHERINE JENSON, City Attorney City of La Quinta, California 119/015610-0008 372 471124.01 a01/28/04 12 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 7 EXHIBIT "A" The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 37 Of Tract 2190, As Shown By Map On File In Book 41 Pages 55, 56 And 57 Of Maps, Riverside County Records. APN 649-090-003 119/015610-0008 13 373 471124.01 a01/28/04 • ATTACHMENT1 I 44tr P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 July 29, 2003 CERTIFIED MAIL RETURN RECEIPT REQUESTED Ms. Emma Rackie 46250 Jefferson Street La Quinta, California 92253 Ms. Emma Rackie 132 N. Merrimac Drive Apt. A Anaheim, CA 92807 (760) 777-7000 FAX (760) 777-7101 Re: Offer to Acquire Property Located at 46250 Jefferson Street, Riverside County Assessor Parcel No. APN 649-090-003 Dear Ms. Rackie: The City of La Quinta (the "City") is proposing the construction of a widening and improvement of Jefferson Street, within the City. The City understands you are the vested owner of the above -referenced property. The City seeks to acquire the fee simple interest in the property, more particularly described as 46250 Jefferson Street, Riverside County Assessor Parcel No. APN 649-090-003 as shown on map attached hereto as Attachment "A", which is made part of this offer by reference (the "Property"). This letter contains an offer by the City to acquire the Property, and the terms and conditions on which it proposes to do so. No final determination has been made at this point by the City as to the ownership of the Property. The City is in the process of securing information from a title company which will assist in determining exactly who the current owners are, and what other persons or entities may have lease, financing, or other interests in the property. Any acceptance of this offer is contingent upon your presentation to the City of conclusive evidence that all parties with interests in the Property (including, but not limited to, lessees, licensees, lienholders, etc.) have accepted this offer, and agreed on how the proceeds for.the acquisition of the Property shall be distributed. The City had the Property appraised to determine its fair market value. The appraisal was conducted by Mr. Michael Scarcella, MAI, of Capital Realty Analysts, in accordance with commonly accepted appraisal standards, and included consideration of the highest and best use of the land. Mr. Scarcella previously corresponded with you, offering to meet with you on his inspection of the Property, and inviting you to provide information regarding the Property. Based on the appraisal, the City offers to purchase the Property (free and clear of any encumbrances to title such as liens, leases, licenses, or other interests which, in the City's discretion, are unacceptable) for TWO HUNDRED THIRTY-TWO THOUSAND DOLLARS 3' 119/015610-0008 419383.01 a07/29/03 14 Ms. Emma Rackie July 29, 2003 Page 2 ($232,000.00) (the "Purchase Price"). The basis for this offer is explained more thoroughly in Attachment B of this letter. Attachment "B" is a copy of the appraisal report prepared by Mr. Scarcella, containing the data and pertinent discussion relative to how he determined the fair market value of the Property. It is made a part of this offer by reference. This offer is for conveyance to the City of a fee interest in the Property, excluding any oil, gas, or mineral rights below the depth of 500.feet, and subject to terms and conditions set out below. Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes, except: 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue of Taxation Code, if unpaid at the time escrow closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property, as determined by the City; 3. Easements of rights -of -way over the land for public or, quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report or litigation guarantee, which are accepted by the City in writing through escrow. It shall be your responsibility to convey clear title, and to pay any fees or charges by lenders or other parties in obtaining reconveyances or other items necessary to convey clear title. As a condition of this offer, the City reserves all rights and remedies it may have against you, and all prior owners, to seek damages or other remedies in connection with any remediation or other obligation the City incurs as a result of any contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. Sub -Section 9601 et seq.), the Hazardous Waste Control Law, California Health & Safety Code (Section 25100, et seq.) the Porter Cologne Act (California Water Code Section 13000 et seq.) California Health & Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. In addition, any final transfer of the property, and payment of the purchase price, will be conditioned on the City's filing of a Notice of Determination with the County Clerk approving an Addendum to the Initial Study/Mitigation Negative Declaration for the Jefferson Street Improvements, at least thirty-five (35) days prior to close, and no judicial or administrative challenges having been presented or filed against the findings made therein as of the date of closing. The City will pay all escrow and recording fees incurred in the purchase of the Property, and if title insurance is obtained, the premium charge for such title insurance. 119/015610.000s 15 375 J 419383.01 a07/29/03 Ms. Emma Rackie July 29, 2003 Page 3 Please be advised that the amount paid to you pursuant to this offer, if it is accepted, may be eligible for favorable tax treatment under Internal Revenue Code Section 1033, relating to acquisitions under threat of condemnation," providing you purchase qualified replacement property within the time periods set forth under law. The IRS has literature explaining the details of this favorable tax treatment, which you may wish to consult. In. addition, Section 2(a) of Article XIIIA of the California Constitution and Section 68 of the California Revenue and Taxation Code generally provide that property tax relief shall be granted to any real property owner who acquires comparable replacement property after having been displaced by governmental acquisition or eminent domain proceedings. The State Board of Equalization has prepared guidelines on those matters, which you also may wish to consult. Please contact our relocation consultants, Bob Stoddard or Kathy Woolley, at (760) 772-4255, if you would like any assistance in obtaining materials from the IRS or the State Board of Equalization on these matters. Please note that effective August 1, 2003, the new telephone number for these consultants will be (760) 776-1238. In addition to the compensation for the fair market value of the property, you may also be entitled to relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title. 25), or local relocation guidelines. Relocation assistance is not a part of this offer. If you would like to inquire further regarding your eligibility for relocation assistance, please contact Bob Stoddard or Kathy Woolley, at the number listed above. Please be advised that California Code of Civil Procedure Section 1263.510 allows a party whose property is subject to public acquisition to claim compensation for loss of business goodwill. The Property does not appear to be the site of any presently operating business. As such, this offer does not reflect any amount of compensation attributable to any loss of business goodwill. If you believe loss of business goodwill should be considered by the City in connection with the proposed acquisition of the Property, attached to this letter is a "Notification of Right to Claim Loss of Business Goodwill," a "Claim for Loss of Business Goodwill," and a "Loss of Business Goodwill" questionnaire. These materials explain in further detail the provisions of Code of Civil Procedure Section 1263.510, and explain what the owner of a business must prove in order to be compensated for business goodwill losses. If you wish to make a claim for loss of goodwill, the City requests that you review and complete the forms attached. Please let us know as soon as possible if the City's offer is acceptable. This offer shall expire if it is not accepted on or before one hundred and twenty (120) days from the date it has been mailed to you. If this offer is acceptable to you, please so indicate to the undersigned, in writing. Upon receipt of your written acceptance, a Purchase and Sale Agreement incorporating the terms of this offer, and containing further escrow instructions regarding review and elimination of exceptions to title, will be forwarded to you for signature. Upon receipt of a signed Purchase and Sale Agreement, the matter will be reviewed by City Council, which has 119/015610-0008 16 376 S 419383.01 a07/29/03 Ms. Emma Rackie July 29, 2003 Page 4 final approval authority. If the deal is approved by the City Council, escrow will be opened immediately. The City generally uses First American Title Company to handle escrows, and proposes this company handle any escrow here. The City is, of course, willing to consider other escrow companies, if you so desire. If for any reason you are not satisfied with this offer of just compensation, and have relevant information regarding the value of the Property that you would like the City to consider, it will be happy to do so. If you have such information, please contact me immediately and I will make arrangements to have the information reviewed and considered. If you have any questions regarding this offer, or wish to request any additional information, you may contact Kathy Woolley or Bob Stoddard at the above numbers. Please note that the City has made no decision to exercise its power of eminent domain to acquire the Property, and can only do so after it holds a hearing at which the affected property owner(s) have had an opportunity to appear and be heard. The City much prefers to accomplish its property acquisitions by way of negotiated transactions, and toward the end of doing so with respect to this Property, would be more than willing to meet with you to discuss this offer, or any related matter. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the Attachments, and all matters stated herein are made under the provisions of Evidence Code §§ 1152 and 1154, and shall not be admissible in evidence in any proceeding which may be instituted relating to the acquisition of the Property, or in any other action. We hope this offer meets with your approval. As stated, our relocation and acquisition consultants, Bob Stoddard or Kathy Woolley, will be happy to meet with you to discuss the Property, the offer, or any related matter, and will attempt to contact you soon. If you need additional information, please call me at the number referenced above. Thank you. Very truly yours, CITY OF LA QUINTA therine Jens City Atrney City of La Quints 119/015610-0008 1 419393.01 a07/29/03 377 Site Analysis Subject Plat Map APN 649-09, Riverside County, CA (32) CAPITAL REALTY ANALYSTS 378 REAL ESTATE APPRAISERS • ANALYSTS •ADVISORS A Complete Appraisal Presented In A Summary Report Of The Prospective Taking,Of Several Improved and Unimproved Land Parcels, Located Along The East and West Sides Of Jefferson Street; La Quinta, CA. 92253 Otherwise Known As APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta, Riverside County, CA. Date Of Appraisal June 20, 2003 Effective Date of Valuation June 10, 2003 Job Reference No. 03-1097 For The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calle Tampico La Quinta, CA 92253 By CAPITAL. REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 19 379 Table of Contents TABLEOF CONTENTS......»»..».»»».».».»......»»........»».»..»»»»..»..»......»...».......»..»»».»»........»»»». a SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS6 10 IN 2000) SATELLITE PHOTO (TAKEN ...............:........................................................................................ SUBJECT 11 INTRODUCTION / HISTORY OF THE ..................................................................... 12 PURPOSE OF THE APPRAISAL............................................................................................ 12 FUNCTIONOF THE APPRAISAL.................................................................................................................. ....12..,. PROPERTY RIGHTS APPRAISED ........................................ ..................................................................... 13 DEFINITION OF MARKET VALUE........................................................................................................... 13 DEFINITION OF EMINENT DOMAIN............................................................................................................ 13 DEFINITION OF CONDEMNATION............................................................. ................................................... DEFINITION OF EASEMENT........................................................................................................................13 ....... 13 DEFINITIONOF DAMAGES.................................................................................................................. 13 DEFINITIONOF BENEFITS.......................................................................................................................... 14 BUNDLE OF RIGHTS THEORY................:................................................................................. 14 BEFOREAND AFTER RULE........................................................................................................................ 14 SCOPEOF THE APPRAISAL .......................... .............................................................................................. 15 DATE OF VALUATION.................................................................................. 15 LEGALDESCRIPTION.................................................................................... 16 ASSESSMENT& TAXATION.................................................................................................................. REGIONALANALYSIS »»»».».».»»..»»».» ..... »»»»»..».»»•...•.»....'..'..».».'."'»»»»..,,,•.,,,,„»,,,...»»».....17 CITY ANALYSIS,.LA QUINTA, CA»....».»».»»........».»»•»»»»•..»•»»»»»»»..»..~-....'."...'...»»„..........22 NEIGHBORHOOD - MARKET ANALYSIS.»........ ---- .».: ...... »»..••'•'- —. 27 31 SITEANALYSIS..............»»»............»..»...........»......».......».».»... ......... ................. ».......»......».....».».. 41 . HIGHEST AND BEST USE ANALYSIS ... ...... »....».».».»»»......».»..»..»» ..................»:»».».».»..»»...». . APPRAISALPROCESS..........»»..» .............. »»........»».....».».......»...».»».».»...»...»»»...».....»...............44 46 SALES COMPARISON APPROACH.»»..»..»......».»..»»..»..»»•»......».....».».......»........... .................. 50 LILLEY: 649-071-009 & 029.» .....»...»......»».».............».»..............»»................».».» .................. 54 WAH649-071-009.....------- ......».......»»•...............»».».,..»........».»................»........»...».»»...»....»»....»» 60 PETERSON: 649-071-011...........».»............ ........... ........»....»..»....,.»»......................»».»...»....:...»......... ...... 66 WAGGONER: 649-071-012.» ...»......................».»»....».......»..»..... .............. 73 FEACK: 649-071-013»».»»........»....».»............. »........... »......................... ».».............. ..... ....»... .........».. ....».».. 79 ELROD: 649-090-007..... ».......»•................... »........ »..... »...... ................ ...» .............. ..... ..... .... »..... 83 NIKOLICH: 649-071-015.....».........»»».....»......................... ..... »......................... »»...... ».»..».».....»» ROLLAND: 649-071-016................ ......................... »........... »....................... :........... ........... ».».... »...»» 89 KRAKOFF: 649-071-017.......... ........................................................ ...................................................».. 95 (4) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 20 380 REYNOLDS: 649-071-018»... ».......... .......»...».................. NN........ »»......N». 101 107 ASTORGA: 649-071-019.NN..»...NN.N.NN ...... NN..N•.NN.N.NN.N.N.N.N.».N.NNNNN.NN.NN. LILLEY:649-071-020...... «..«».NN.....«..NNN.».«».............«.........»..»»N. »........». .» 113. 117 LILLEY: 649-071-021..... N............»N.N««..N.».........»..N.«»....N«..N..»»»«....«».».».»«...««.....«»........»» ....»...».«................«..N«..«.».N........». MILLS: 649-090-001N.... 121 CULP: 649-090-002.»»»........«..»...«».....................N....N......»....................»............»...«....».»........».» 127 RACKIE: 649-090-003.N........».«NN»......N«.N.».»»......N.»....«.NN...«».»....«.««» 133 .N..N......................«N»........».,,,,,,,•,»,,....................139 W ALDO: 649-090-004...........N»..«......».....«»........... 145 HALL:649-090-005..»..N..........».N.«. ...»».».......»..... «.» RODRIGUEZ: 649-090-006 .......»»...N.......».»...».........««.«..».«..«»....»................... 149 ZILINSKY: 649-090-007...«»«......»... ....•».••••»»••••«•••�• 155 STEDING: 649-090-008........»..N».»».•••••.•.•N•.•..•..«...».».N»N.«».'....'»N."'."'«"'...»..............'.......159 ALEXANDER: 649-090-009 N........»..... «... N.....«....»...«.....».....».....».»......N....».....».»...N.................»..165 --------- 171'. HENDERSON: 649-141-001«..»....NN.»,,,,,,,,,,,,,,,N...................N............N...«...N.».N.»...»..........».. 177 CERTIFICATION «« N...........N........«.»...........». ... ................NN..N..................»...» ... ASSUMPTIONS AND LIMITING CONDITIONS.»...«..........»..»«.».»•..•••»•••»•»•�•••••••»•••�•N- 179 CAPITAL REALTY ANALYSTS REAL ESTATE ArrRAISERS ANALYSTS • ADVISORS 21 381 Summary of Important Facts and Conclusions Client: The City of La Quinta Attn: Mr. Tim Jonasson 78495 Calle Tampico La Quinta, CA 92253 Intended Users: The Client Property Type: Single family homes, vacant single family home lots, and a parking lot / putting green area Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-00.1 Through 009; and 649-141-001; City of La Quinta: Riverside County, .CA. Thomas Brothers Guide Reference: Census Tract Number: Type Of Report: Report Format: Tract 452.05 Complete Summary (6) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 22 .382 Summary of Important Facts and Conclusions Purpose of the The purpose of this appraisal is to estimate the just Appraisal: compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Eminent Domain Appraisal: Date of Valuation: June10, 2003 Date of Appraisal: June 20, 2003 owner of Record: Preliminary Title Reports were not submitted or examined. According to public records, title to the subject parcels is vested as follows: 2 649-071- 009 Ellis & Helen Wah 4w55 Jefferson Street 3 649-071-010 Indian Springs Land Co 4 649-071-011 David F. & Patricia L. Peterson 46115 Jefferson Street 5 649-071-012 Bill & Suzie Waggoner 46145 Jefferson Street 6 649-071-013 Eugene T. & Card A. Feadc 46175 Jefferson Street 7 649-071-014 David A. & Card A. Elrod NIA 8 649-071-015 Milan & Mila Nikolich 46235 Jef MOn Street 9 649-071-016 Patsy Rolland 46305 Jefferson Street 10 649-071-017 Sheila A. Krakoff 46335 Jefferson Street 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 12 649-071-019 Ronald Asiorga 46425 Jefferson Street 13 649-071-020 Jeff L. & Patricia C. Lilley WA 14 649-071-021 Jeff L. & Patricia C. Lilley WA 15 649-071-029 Jeff L. & Patricia C. Lilley WA 16 649-090-001 Harvey A. & Audrey R. Mills 46170 Jefferson Street 17 649.09D-002 Elaine L. & Robert L. Culp 462o0 Jefferson Street 18 649490-003 Emma Rackie 46250 Jefferson Street 19 649-090-004 Edward E. & Marie A. Waldo 46280 Jefferson Street 20 649-090-005 21 64SQ90-ON William Hall Mirta Rodriguez NIA 46390 Jefferson Street 22 649-090-007 Charles J. & AUoe S. Zilinsky WA 23 649-090-00& Sue F. Steding 46450 Jefferson Street 24 64949D-009 John D. & Jaq P. Alexander 46480 Jefferson Street 25 649.141-001 Leonard C. & Margaret R. Henderson 80020 vista Grande (7) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADvrSORS 383 23 Summary of Important Facts.and Conclusions Site: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels areas follows: . 9 APN 1 649-071-008 vw-, Jeff L. 8 Patrice C. LMey ---- - ---- - - - WA 46055 Jefferson Street 61712 9X3 2 649-071-M Elks 8 Helen Wah WA _ 3 649-071-010 4 649-071-011 Indian Springs Land Co David F. 8 Patricia L. Peterson 46115 Jefferson 811rtet 11,326 S 649-071-012 all 3 Suite waggow Eugene T. 3 Carol A Feack 46145 Jefferson SVW 46175 Jefferson Street 7.841 7,841 6 649-071-013 7 649-071-014 David A. 3 Carol A. Elrod NIA 46235 JeA•rson Stoat 7,841 7.841 s 649-071-015 9 649-071-016 Milan 8 Mlle Nikokh Patsy Rolland 46305 Jefferson Street 7,841 10 649-071-017 SMie X Kraholf 46335 Jefferson Street 48395 Jefferson Street 7.841 7,841 11 649-071-018 12 849-071-019 irmothy K. Reynolds RonsW AsIOrga 46425 Jefferson Street 10.454 13 649-071-020 Jeff L. 3 Patrice C. LMay WA WA 5A63 8,712 14 649-071-021 Jeff L. 6 Patricia C. LMeY WA 1,742 1S 549-071-029 16 649490-001 Jeff L. & Patrice C. LMey Harvey A. 3 Audrey R. MISS 46170 Jefferson Street 7.841 17 649-090-002 Elaine L. 3 Robert L. CuIP Emma RWkie 46200 Jefferson SW" 46250 Jefferson 8trset 7.841 7,641 -00 19 649-0903 19 549-090-M Edward E. 3 Marla A. WOWS 46200 Jefferson So" 7.841 7.641 20 649.090.005 21 649-090-005 William Hal Mina Rodriguez WA 46390 Jefferson Strad 7.841 22 649-090-007 Charles J. 3 Ake S. ZMnskY Sue F. Shmft WA 46450 Jefferson Street 7,841 7,841 23 649490-M 24 649-090-M John D. 3 Jew P. Alexander 4"W JaRamon Street 80020 VIM (irMrde 9,148 10,454 25 649-141-001 Leonard C. d Margaret R. Henderson Improvements: 17 of the subject parcels are improved with single family homes. The remaining S parcels are vacant. According to the City of La Quinta Zoning Map, all of Zoning: the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning is likely as of the date -of value. Highest And Best Use, Hold for investment "As Vacant": Highest And Best Use, Remain as improved "As Improved": Property Rights Fee Simple Estate Appraised: (8) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISFJIS • ANALYSTS • ADVISORS 24 384 Summary of Important Facts and Conclusions Final Estimate Of Just Compensation: Personal Property: 6 d Rwerd MdMN rnP,er«nMM� tw 1 1 ITF=Uw MA sww1 fFR i ..6a7+�o6 7 64t-07,-0,0 ®. a 1w r+�n � 4a'0 �O 46p6 jwkmm WA 46115 ionwaon A4rt sae . 1t•� 4 GOW1411 - 8 61P071412 D" F. a Priidt L PaWm 66 a Sw1t Wt0pww 46145 J@*Wnn So" �FR 7A41 • 649WIM2 Eupwr T. a C4rol A F4wdt 46175 Je6Mtoe am NNW 7JN1 7 64WI.611 04n10 A a Cwoi A Etod WA Atet SFR 7JM1 6 146071-015 t GOWUMG ManaMUHBO" Rtwd 46225 Jt6Mson Aw >R SM 7641 TA41 1t 149W1417 11 64W1416 ShIM&RE1810 Ttwtfty-W 466 Jtlwn 45M Jtlton AM 6FR 7A41 10A64 M 12 6461419 13 GOW1420 Rtnad Atw�6t J41 L & F"Wa t u ty 46M Jtlwton AtM NA SM "We NNW 6A62 a7u '. 14 641 MI -MI Jt1 L i PwAw'C. LAY NA WA Nwr 1.742 -07 1a 6401420 16 0464106061 Jeff L a POW C. LAY IOW. A a j 0. MA �46 Awl >�1t SM 7.M1 TA41 17 640-000002 b n EWnt L a RRD L CN0 Redo w Jt6wwn M6260 JvftRM St" 6FR 7A41 1t 646060062 N 646410-M . Emmt Edwwd L & M � WSW 4126D Je A1M � 7A41 7A41 20646016M WA SM 7."1 21 6"Mo- 66 22 644066�007 Ma Rtdil0m Clwrlet J. a Aft* & bb*Y 4620pJ41wton&Md WA !lout MR 7A41 7 M1. 27 640-000006 aaw F. WAdM 46400 J441wton Abel 9.10 24 640A00006 2a64414i4m Joe D. a iwv P. Ns-,dr L44twidC.aMwPW0.1MderWn /a Vk" GtAwl 10020vY1tG+wb •YR SM 10A64 0A" (9) CAPITAL REALTY ANALYSTS. REAL ESTATE APPRAISERS • ANALYSTS • ADWSM Introduction / History of the Subject The subject property includes 25 separate legal parcels, located along the east, and west sides of Jefferson Street, south of Westward Ho Drive, in La Quinta, CA. All of the parcels except 1 have frontage on the Indian Springs Goff 'Course. The history of the Indian Springs Country Club is described in the following sections: The property was originally developed with an 18-hole golf course and some residential .homes in the early 1960's. Several of the subject homes were .developed in the 1960's. In January 1984, One Hundred and Thirteen Corporation acquired the project for $1,595,000. One .Hundred and Thirteen Corporation subsequently acquired additional parcels, which made up the bulk of what is now the existing Indian Springs site. The golf course was reportedly not managed or maintained up to market standards under the One Hundred and Thirteen Corporation ownership. The facility had a poor reputation and reportedly performed well below market standards. One Hundred and Thirteen Corporation subsequently defaulted on a trust deed, and the property reverted to Diamond Benefits Life Insurance Company (In Receivership) on November 1, 1992. . A lease agreement for the golf course and related facilities and equipment was. executed on September 29, 1994. The lessee made some improvements to the golf course, and the golf facilities began operating at near market standards for the courses' market niche, which was at the lower end of the spectrum. In early 1998, the Diamond Benefits Indian Springs holding was placed in escrow by Indian Springs Larid Co., LLC. Indian Springs Land Co., -LLC is an affiliate of Mr. Roger Snellenberger, an active subdivisiondeveloper, market. The The escrowh several rojects price was Valle developed and absorbed in the Coachella y $6,353,000 (it was $8M prior to the school site sale described below). During the escrow period in 1998, Diamond Benefits sold approximately 36.5 acres of land at the SEC of Miles Avenue and Dune Palms Road to the local school district. The sale price was $1,647,000, or $45,123 per acre..ln order to make up the lost land area, the developer acquired APN's 604-062-008 and 009. Both parcels sold on 5/14/99 for $200,500 each, or approximately $42k per acre. The Diamond Benefits acquisition was completed on 1/20/00. The sale price was $6,353,000, inclusive of the golf course. Additionally, the developer (and/or .related entities) acquired a contiguous 40-acre parcel located on the SEC of Miles Avenue and Jefferson Street for $1,520,000, or $38,000 per. acre. The closing date was 6/6/00. The assemblage was completed with the acquisition of a 12.5-acre parcel on 6/9/00 for $433,000, or $34,640 per acre. (11) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS ADVISORS 27 387 Introduction / History of the Subject Property (cont'd) Currently, the developer has developed the bulk of the remaining lots located on. the east side of Jefferson Street. The absorption rate for the project has been among the strongest in the region, as the units have attained excellent market acceptance. Alternatively, the subject parcels have not traded actively over the past several years. The reason is that Jefferson Street is a major arterial, that bottlenecks at the area of the subject, where the street becomes 1-lane in each direction. In fact, during my physical inspection, several of the homeowners indicated• that they felt that the combination of street noise and the high traffic count have been detrimental influences. The fact that 6 of 24 residential lots in this area remain undeveloped after over 4 decades subsequent, to their subdivision clearly supports the lack of demand and viability for single family homes on Jefferson Street in this particular. area. However, the lots back to the Indian SpringsGolf Course, which does provide good view elements to the subject homes. The southem end of the subject area abuts the Whitewater River, a large regional drainage escarpment. This drainage periodically floods, closing Jefferson Street to through traffic. In light of the location of the Whitewater River and the configuration of Jefferson Street, the City of La Quinta is currently exploring the possibility of acquiring the subject parcels in order to widen Jefferson Street and construct and bridge over the Wash. The potential taking generated the requirement for this analysis. Purpose of the Appraisal The purpose of this appraisal is to estimate the just compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Appraisal Eminent Domain Property Rights Appraised The property rights appraised are those of the Fee Simple Estate. The definition of Fee Simple Estate for this appraisal is as follows; Definition of Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."' '(The Dictionary of Real Estate Appraisal 3rd Edition, Appraisal Institute Chicago Illinois Page 140.) (1 2) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSERS • ANALYSTS • ADVISORS 3 n rj 28 a Definition of Market Value The definition of Market Value for this Appraisal is as follows: A. The market value of the property taken is the highest n h vv �l price to sell ut being . valuation that would be agreed to by seller, beg 9 under no particular necessity for so doing, or obligated to sell, and a buyer, being ready, willing and able to buy, but under no particular necessity for so doing, each dealing with the other with the full knowledge of all the uses and purposes for which the property is reasonably adaptable in a buyable period. B. The fair market value of the property taken for which thereb any no relevant valuation market is its value on the date of valuation as determine y y that is just and equitable. (Source: California Code of Civil Procedure, Title 7, Chapter 9, Article 4, Paragraph 1263.320) Definition of Eminent Domain "The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as "the taking clause" guarantees payment of just compensation upon appropriation of private property.' Definition of Condemnation The act or process of enforcing the right of eminent domain."' Definition of Easement nveys use, but not ownership, of a portion of " An interest in real property that co an owner's property. Access or right-of-way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space and preservation easements. Definition of Damages the California Code of Civil Procedure Section 1263.420. Damage of therfollowing: is the damage, if any, caused to the remainder by either or both (a) The severance of the remainder from the part taken. Is taken in the (b) The construction and use of the project for which the property manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken. 2 the nirw OL d Real Estate ADDW M. ChicapO,11., Pape 116 ��_ r, .,..�..,.,E R.a� Estate Ao=r §al, Chicago. II., Pape 71 (13) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVMORS29 3 ^-9 Definition of Benefits California Code of Civil Procedure Section 12 3.430. Benefit to the remainder is . of the project for which the the benefit, if any, caused by the construction and use property is taken in the manner proposed by the plaintiff whether or not the benefit is caused by a portion of the project located on the part taken. Bundle of Rights Theory ownershi to a bundle of sticks with each The concept that compares property p e owner, a .g. the . stick representing a d istinct a nd s eparate right of the prop rty it, .to give it away, or to choose to right to use real estate, to sell it, to lease exercise all or none of the rights. Before and After Rule often referred to as the Federal Rule; In eminent domain between a proce vd of ure in which just compensation is measured as the difference the entire property before the taking and the value of the remainder after the taking. I have applied the State Rule to appraise the subject taking. There are nine procedural steps to be followed, as shown below: 1. Value Before Taking 2. Fair Market Value of Part Taken as Part of the Whole 3. Remainder Value Before the Take 4. Remainder Value After the Take 5. Damages to the Remainder 6. Benefits to the Remainder 7. Net Damage to the Remainder Note that all of the proposed takings are or a 100% fee estate. Consequently, damages, or beneftsSAlthough there will be no remainder parcels, easements,. the State Rule is applied, the part taken is the whole, and consequently, just compensation is for a 100% fee estate in each parcel Scope of the Appraisal ed to be an "appraisal assignment" as defined in This Appraisal Report is intend Appraisal Practice Institute.. It is the Standards of Professional of the Appraisal my intent that the appraisal service be performed in such a manner that the results of the analysis, .opinion or conclusion appropriate hat of a disinterested thidata deemed pertinenttoa he y. Additionally, it is my intent that all solution of the appraisal problem be collected, confirmed and reported in conformity with the Standards of Professional Appraisal Praice and of the t e Coss is Professional Ethics of the Appraisal Institute. The scope appraisalsn intended to be appropriate in relation to the significance of the problem. (14) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 30 390 Scope of the Appraisal (cont'd) Lacking improvements with an associated cost and /or income earning potential, the Cost Approach and the Income Approach are excluded for the valuation of the vacant parcels. The Sales Comparison Approach is applied exclusively for the vacant parcels. In terms of the improved parcels, both a Cost Approach and a Sales Comparison Approach are applied. The Income Approach is excluded as there is a lack of rental data in the areaAlthough as not oprovided. subjectf the -parcels Appraiser ser. currently leased, a copy of the lease agreement interviewed market participants including buyers, sellers, developers, real estate brokers and lenders in the subject market and competing areas during the collection and confirmation of data for this assignment. Date of Valuation June 10, 2003 Date of Appraisal June 20, 2003 Legal Description The legal description for the subject property is as follows: 1 649-071-008 .20 Acres M/L in Lot 17 MB 041/055 TK ziau 2 649-071-009 Portion of Lot 19 and Lot 18 MB 041/055 TR 2190 3 649-071-010 Portion of Lot 19 MB 041/055 TR 2190 4 649-071-011 Portion of Lot 19 and Lot 20 MB 041/055 TR 2190 5 649-071-012 Lot 21 MB 041/055 TR 2190 6 649-071-013 Lot 22 MB 041/055 TR 2190 7 649-071-014 Lot 23 MB 041/055 TR 2190 8 649-071-015 Lot 24 MB 041/055 TR 2190 9 649-071-016 Lot 25 MB 041/055 TR 2190 10 649-071-017 Lot 26 MB 041/055 TR 2190 11 649-071-018 Lot 27 MB 041/055 TR 2190 12 649-071-019 .24 Acres M/L in POR Lot 29 and Lot 28 MB 041/055 TR 2190 13 649-071-020 .13 Acres M/L in Lot 29 MB 041/055 TR 2190 14 649-071-021 Lot 30 MB 041/055 TR 2190 15 649-071-029 .04 Acres M/L in POR Lot 18 MB 041/055 TR 2190 16 649-090-001 Lot 39 MB 041/055 TR 2190 17 649-090-002 Lot 38 MB 041/055 TR 2190 18 649-090-003 Lot 35 MB 041/055 TR 2190 19 649-090-004 Lot 36 MB 041/055 TR 2190 20 649-090-005 William Hall 21 649-090-006 Lot 34 MB 041/055 TR 2190 22 649-090-007 Lot 33 MB 041/055 TR 2190 23 649-090-008 Lot 32 MB 041/055 TR 2190 24 649-090-009 Lot 31 MB 041/055 TR 2190 25 649-141-001 Lot 1 MB 057/007 TR 3505 (15) CAPITAL REALTY ANALYSTS. REAL ESTATE APPRMSERS • ANALYSTS • ADVISORS 31 391 Assessment & Taxation Consistent with code sections pertaining to eminent domain, assessed value has not been used as a basis for valuation. Easements and Encumbrances A Preliminary Title Report for the subject parcels was not -submitted or examined. The subject is being appraised as though there are no atypical easements and/or enc�imbrances that may have a negative impact on the prospective market value or marketability of the subject. The appraiser reserves the right to modify any data or value estimates contained in this analysis after inspecting Preliminary Title Reports for the subject parcels. (16) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSERS • ANALYSTS • ADVISORS 32 392 Regional Analysis Regional Map. Conn Hol JOSINIS Troe ra&>Ma.A4.. ;mn; nngn aq spr- rdofness ' 1�q .13• y tla yy tt> Jfl!c lit" IteL.IfeliAwAPork ..� 1w WMa . SPnn➢ei:. Mari Rd Won ,%t Hmo Wos Fried LAk M:nM Wash . I t t 1 Washisgtos Wea16Thous. • Palm w�4 , Palm erM qi w"'AI�11' t tt' San JeciMa a, ••T�1r6'WOsA 143 ... 1Mlderness Subject tAMsnw.a. ' • ;r,y; ,� C A, l f. 0 R N t A MYOM VIA*# Ca1Mar� IIaAtYM. Valle Vkta aPlee Cove �i I ' Ranchowgvs ProdWMh9. tr. . 74VMS : Pehn Q6°� 111 a ila Cot=CtY n 1, SAtI nernarAltw NMktnel 1`t+rest .74 Ou"a Ilrw.:,•14n.A:w�� ,.1. TAelmal pilpa8 �, "� '�y r Ra:l uM.Aw,. - 1104 Ave • $AI11Y Il aft AYp ,� 1 Rn1:. 1k...�Alw•a b 8pL 111 LIL SQb :'f Attulll. I.R. y. �-O l .371 $aR07! Sao ..,... ... « r, .. ..,,tr,r as sum oler s. M ria t Regional Demographic Snapshot Population Household Inc Housing Val. Age Force Unempioymentl Description Cathedral City 44,650 $ 40,014 $ 113.200 31.3 19,460 5 80% Coachella 23,950 $ 30,058 $ 68.400 23.0 9,120 14.40% Desert Hot Springs 17,000 $ 26,782 $ 74,100 30.2 6,640 6.70% Indian Wells 4,020 $ 113,851 $ 372,900 60.2 N/A 2•90% Indio 51,500 $ 33,629 $ 83,600 26.2 21,701 9.10% La Duinta' 26,300 $ 51,231 $ 117,400 31.0 7,480 5.60% Palm Desert 42,350 $ 48,309 $ 172.600 41.9 15,940 3.80% Palm Springs 43,800 $ 35,651 $ 141,200 43.9 25,820 5.00% Rancho Mirage 13,900 $ 58.341 $ 252,500 58.8 N/A 3.20% Unincorporated 64,262 $ 41,741 $ 98,000 35.0 N/A 6.50% Total 331,732 33,173 $ 41,741 $ 126,200 35.0 N/A N/A Mean CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS A ANALYSTS • ADVISORS 393 33 Regional Analysis Population The following chart shows the growth pattem of the regional area since 1980; 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50.000 0 6 --♦— Population —Power (Population) In addition to the permanent population of 331,732 on 1 /1 /01, there is an estimated 124,000 seasonal residents from January through May. Among the incorporated cities, the following chart depicts population rates since 1980: III cathedral city s Coachella O Dosed Hot Springs Olndian Wells ■ Indio ■ La Quints ■ Palm D000 t O Palm Springs • Rancho Mirage 1980 1980 &W ---- The following table shows the same data expressed in terms of growth rate percentages since 1990; 1990-2001 00% 60.00% 80.00% 100.00% 120.00% 140.00% O.Z% 20.00% 40. ■Rancho Mirage GPakn Springs ■ Palm Desert ■ La Quints ■ Indlo 0Indian Wells G Desert Hot Springs ■ Coachella As shown, La Quinta is leading the region in terms of population growth. Indio passed Palm Springs as the largest city in the regional. area, and Palm Springs has had the least growth over the past 10 years. CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 34 394 Regional Analysis Population (cont'd) The total permanent population of the Coachella Valley is projected to .be 372,000 in 2005, 422,000 in 2010 and 473,000 by 2015. Economy Historically, the regional economy developed around tourism in the western portion o f t he r egion, and a griculture i n t he a astern p ortion o f t he r egion. T he tourism, construction and agricultural industries continue to drive the economy of the region. The following table shows regional employment by sector; M Manufacturing ■ Utilities 1 Transportation O Government / Schools O Construction ■ Finance M Agriculture ■ Tourism O Retail Services Employment In terms of regional economic conditions, hotel room sales are an important indicator as the tourism and services- segments make up the largest employment base. As shown in the table below, regional hotel room sales trending down in 2001, after encountering a strong increase through the 90's. Regional Hotel Room Sales 400 350 300 250 200 150 100 50 - -Room Sales (millions) —Power (Room Sales (millions)) In terms of construction activity, 2002 had $1.13 billion in permit activity, which was the 2"d highest year ever in permit valuation. The following table shows a Building Permit Valuation comparison: (19) CAPITAL REALTY ANALYSTS REM. ESTATE APPRAISERS • ANALYSTS • ADVISORS 35 3 9S Regional Building Permits By Property Type -•- Residential --�- Multi -Family Commercial 92 93 94 95 96 97 98 99 0 1 2 Yew Assessed values in the regional area had been flat from 1992-1997. Total assessed values increased from 1997-2002. The eastern part of the regional area continues to support a significant agricultural based economy. Although current crop production is up, employment is down due to improved technology in production and a migration to less labor-intensive crops. In the manufacturing sector, growth has been limited and industrial lot supply & demand is roughly in balance. The State created an Enterprise Zone in 1991, which encompasses approximately 29,000 acres in the northeastern end of the region. Efforts to. attract new development to this area have largely failed to date. The economic benefits expire in 2006. Conclusion The subject region is in the growth stage. of its economic life cycle. The regional area is projected to continue to double in population approximately every `15 to 16 years. The eastern part of the regional area should continue to transition from agricultural uses to residential and ancillary supporting uses. Current country club residential absorption is trending down due to negative national and regional economic conditions. However, the primary housing sub -market at lower price points is trending up, as is the average retail unit price. The hot summer climate of this regional area will continue to create a significant seasonal market. Long- term prospects appear similar to the historical growth patterns of other, more mature seasonal markets in the southwest like Phoenix, Tucson, Las Vegas, etc. The core industry of tourism & related businesses should continue to dominate the economy of the regional area in the long term. As the regional area transitions into permanent populations of over approximately 750,000, it is likely that a sufficient labor pool will exist to attract larger manufacturing and non - service related. economic entities. (20) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSBRS • ANALYSTS • ADVISORS 396 36 Regional Analysis Conclusion (cont'd) In the short term, the subject region is characterized as being in a growth mode. After poor or no growth from 1990 to 1995, the residential and retail sectors trended up sharply through 2002. Current industrial supply & demand is roughly in balance. The hospitality industry had a record year in 1999/2000. The, 01/02 season was negatively impacted by the 9/11 attacks. The 02/03 season showed a small increase. While the national and regional economic down turn have impacted some real property segments, the lower end primary housing and retail segments continue to progress. These trends are expected to continue through at least the short term. (21 ) CAPITAL REALTY ANALYSTS REAL ESTATE Appws m • ANALYSTS • ADVISORS 37 397 City Analysis, La Quints, CA �«M •M ;ts Subject `d i, .r,•w• ar.... , g'^ ... w r - laatiw � " ��•I.YMa{.a1 �1<.• . ar Sao I. j 4*0; a a " " ♦ iK_ f t/if[ 1! eel i a a Yr•1M .wwaM "' i ■f M-• .� Ar• �r }�� aarlari;.. .w Location La Quinta, CA is located in the eastern portion of the Coachella Valley. ,The city is bordered to the west by the Santa Rosa Mountains providing an outstanding natural view amenity. Historically, La Quinta developed around the La Quinta Hotel, which was built in 1926. The City has easy access to Highway 111 and a direct route to Interstate 10 via Washington Street and Jefferson Street. Population population Growth, La Quinta From 1989 to 2002, the permanent population of La Quinta grew by, OW approximately 337%, or an 25, Y average of approximately 28% per 200 year. In addition, an estimated 15,E 12,000 seasonal residents reside in lo,000 y La Quinta for 4 to 6 months per s,000 year. The "season" is generallyLa. 0 N so 99 92 93 94 95 96 97 '9e o + 2 considered January through May. Quinta has been one of the fastest growing cities in Riverside County. The City has a substantial inventory of residential and master -planned community land remaining for development. (22) CAPITAL REALTY ANALYSTS REAL. ESTATE APPRAISERS * ANALYSTS • ADVWRS 398 City Analysis, La Quinta, CA Economy La Quinta has historically been known as a higher end resort community. The local a conomy i s d riven m ainly b y t he r esort / r esidential d evelopments i n t he city. The number of high quality projects such as PGA West, Tradition, Rancho La Quinta, La Quinta Resort & Club, and the La Quinta Hotel provide a significant employment base in the service and construction 'sectors. The following graph shows a historical prospective on the number of residential units developed in La Quinta over the past 16 years: Residential Units Developed 86 as 90 92 94 v6 I vo &"W" d""a. ■ 57 ON ass ■ 90 093 ■" ■ 95 ■ 97 on ■ 99 ■ 2002 As shown, the city has had a tremendous number of new. residential units developed, in relation to the size of the permanent population. A number of country club projects are currently active in new residential construction. These include PGA West, Rancho La Quinta, Mountain View, The Hideaway, and the Tradition.. PGA West in particular has been quite active. The property owner, KSL Recreation discontinued their in-house residential development program in mid-1998 and sold most or the entire remaining superpad production lot inventory to merchant builders. The Ctty's redevelopment agency recently acquired 525 acres of land located west of Jefferson Street between Avenues 52 and 54. Redevelopment of this land will include the city's first municipal golf course. Future hotel/resort and retail development are also planned for the property, which will create new tax revenue for the city. Other than the homebuilding industry, La Quinta has a substantial economic base in the tourism industry. The Washington Street / Highway 111 corridor is rapidly evolving with a new Auto Mall and an approximately 66-acre commercial/industrial park known as the La Quinta Corporate Centre, which is partially developed with more phases planned. A significant amount of undeveloped residential land in the city (23) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 39 399 City Analysis, La Quinta, CA Economy (cont'd) seems likely to assure continued growth on a similar patter through at least the mid-term. Based on the historical growth pattern of La Quinta, and the availability of land, La Quinta is generally projected to remain in the growth phase of its economic life cycle for approximately the next 15 years. Recent developments have occurred in La Quinta including many notable businesses and restaurants, such as Fisherman's Market, Jensen's Finest Foods, LG's Steak House, Larsen Golf Cars, and The Falls Prime Steakhouse. Other commercial activity along Highway 111 is underway, including Big Five Sporting Goods, Ross Dress For Less, Staples, and a Super Wal-Mart. Along Washington Street, new services are expanding, which will include a Marriott Residence Inn, a professional. plaza, a medical plaza, and Omri & Boni restaurant. H istoric O Id T own L a Q uinta i s b eing revitalized a s well with n ew restaurants, a mixture of retail stores, and professional office spaces. Also in La Quinta, the new La Quinta Park will be constructed mSpring and Westward anticipated completion date, located at the corner of Adams St Ho. The graphs below show the economic growth of La Quinta: Hotel Room Sales in Millions $ 097 E96 M99 ■ 2000 ■ 2001 102002 Building Permit Valuations in Millions $ ■97 E98 ■99 ■ 2000 02001 97 es W ---- -- (24) CAPITAL REALTY ANALYSTS REAL ESTATE A"RMsas • ANALYSTS • ADVISORS 40 400 City Analysis, La Quinta, CA Economy (cont'd)' Taxable Sales in Millions $ 139.9 e97, 7.5 ■ 98 099 02000 3.3 ■ 2001 338 - ■ 2002 275.2 r Employment The City of La Quinta is largely suburban residential in character. On a regional level, the resort character of the Coachella Valley reflects the large percentage of employment in the retail, tourism and services . industries. Construction has historically had a strong employment base. The following table shows a summary of employment by sector: Coachella Valley Summary Industry Employmen RetaiINVholesale 23,000 Services 21,000 Tourism 12,500 Agricultural 8,000 Construction 7,500 Govemment/Schools 7,500 Finance Related 6,500 Utilities/Transportation 5,000 Manufacturing 3,500 Total 94,500 Conclusion La Quinta has had the fastest growth ratio of any other city in the regional area. This trend is expected to continue, as there are a large number of residential acres and existing projects remaining for development. Similarly, the number of households is expected to grow at a proportional rate. Median income levels in the subject market are increasing because of a higher percentage of professional employment. The potential for an increasing employment base within the city is likely to be driven by the continued success in the construction industry, golf and retail centers on Highway 111. The table on the following page shows the current demographic profile of La Quinta: CAPITAL REALTY ANALYSTS REAL ESTATE APPRmw • ANALYSTS • ADVISORS 41 401 City Analysis, La Quinta. CA City of La Quinta - 2002 Demographic Profile Population Occupied housing units 71.5% 10,100 Sex Male 14,081 Owner occupied 81.5% 8,227 Female 14,634 Renter occupied 18.5% 1,873 Vacant housing units . 28.5% 4,027 Age Units for seasonal use 21.5% 3,031 Under 10 years 4,763 10 to 19 years 4,245 Housing Type 20 to 44 years 9,431 Single family 91.396 12,902 45 to 64 years 6,430 2 to 4 units 2.4% 335 65 years and over 3,845 5 or more units 4.1 % 580 Median Age 36.4 Mobile home/trailer/other 2.2% 310 HouseholdsTotal Housing Values Family households 7,841 Specified owner occupied units 7,617 Non -family households 2,259 Less than $100,000 15.2% 1,159 Persons in household 28,675 $100,000 to $149,999 25.2% 1,920 Person in group quarters 40 $150,000 to $199,999 20.3% 1,549 Persons per household 2.84 $200,000 to $299,999 18.0% 1,371 $300,000 to $499,999 11.9% 905 Contract Rent $500,000 to $999,999 6.9% 529 Specified renter occupied units $1,000,000 or more 2.4% 185 paying monthly cash rent 1,873 i Median Home Value $185,941 Less than $300 68 $300 to $499 132 $500 to $749 490 • $750 to $999 647 Per capita income $ 29,123 $1,000 or more 491 Median household income $ 58,229 Monthly Rent $ 872, Median family income $ 60,680 Median (26) • CAPITAL REALTY ANALYSTS A O REAL ESTATE APPRAISERS • ANALYSTS 9 AL�{>jORS `t Neighborhood - Market Analysis � d i ��. Iiw�Ow.owY N �dN lw - t Aw-O 71 y. p,..w. Subject wvw •• p + �P: AAA• I. Introduction The subject property. includes all of the homes and vacant lots, located on the east and west sides of Jefferson Street, south of Westward Ho, and north of the Wash, and 1 SFR located at the NEC of Jefferson Street and Vista Grande, La Quinta, CA. All of the parcels are located in an area generally known as Indian Springs. All of the parcels front on the Indian Springs Golf Course, except for the SFR on the NEC of Jefferson and Vista Grande. This home backs to the wash, and although it does not front on the fairway, a wide golf course view is available across the wash. Development Trends Historically, this neighborhood developed around the Indian Springs Country Club. The Club fell into disrepair in the 80's and 90's. Demand proved limited in this location until approximately the late 1990's, when the Indian Springs property sold to a developer who has made substantial improvements to the property. Several hundred new homes have been successfully developed immediately north of the subject within Indian Springs. over the past several years. The subject lots front on Jefferson Street. Jefferson has evolved into a major regional artery. However Jefferson narrows to 1 lane each way Jefferson Street creating a bottleneck. Consequently, the parcels located o have historically had limited market appeal. Of the 22 developable lots located on Jefferson between Westward Ho and the Wash, 6, or 27.3% remain undeveloped; after over 40-years of market exposure. (27) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 43 403 Market Analysis In IIight. of the fact -that developers build homes on lots that support values in excess of cost, the high percentage of vacant lots in the subject are supports.the conclusion that the speculative development on these lots would not prove financially feasible, as of the date of value. Additionally, the cost -based value indicator for many of the subject homes exceeds the sales comparison -based indicator, suggesting that replacement cost exceeds value in many cases, as of the date of value. Although current sales data for units located on Jefferson Street is limited, the following table shows the historical sales, data that is available for subject units with Jefferson .Street exposure; Lot Unit Sale Sale Sale No. APN Owner Size 'Size Date Price Price PSF 1 649-090-002 Culp 7,841 2,333 11/20/1991 $185,000 $ 79.30 www & A ft9% AM a CA rOn 2 649-071-011 Peterson 11,325 7,841 Y,ULO 1,872 0/ 1 u t a.7A '2/27/1995 .P I vW,wv $143,000 w $ - - •-- 76.39 3 4 649-090-004 Waldo 6494090-006 Rodriguez 7,841 1.984 5/23/1996 $165,000 $ 83.17 5 649-071-019 Astorga 10,454 2,130 2/9/1999 $130,000 $ 61.03 6 649-071-015 Nikolich 7,841 2,336 9/29/1999 $170,000 $ 72.77 7 649-071-016 Rolland 7,841 1,526 4/18/2000 $130,000 $ 85.19 8 649-071-017 Krakoff 7,841 2,419 9/14/2001 $210,000 $ 86.81 9 649-071-012 Waggoner 7,841 2,243 1/31/2003 $186,00o $ 82.92 In order to test the value trend for parcels with Jefferson Street frontage, the price PSF, sorted by date., is shown on the following graph: $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 $ PSF Trend On Jefferson 91 93 95 96 99 99 0 1 3 Year --10 $ PSF —Linear ($ PSF) As shown, values for homes on Jefferson Street have remained virtually flat, on a PSF level, since at least the early 19901s. Since approximately 2000, values appear to have declined slightly. The reason is that Jefferson Street has become increasingly more busy, lowering both the desirability and marketability of homes on Jefferson Street. (20) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 44 404 Market Analysis In contrast, I collected sales of adjacent lots from the same Map book, 649-07, that do not have Jefferson Street frontage. The following table shows the data, followed by the same $ PSF chart: Selo. Unit Sale Sale No. APN Size Date Price Price PSF 1 2,050 9/1/1992 $179,000 4 87.32 .649-061-008 2 649-071-M 2,458 2/15/1994 $170,000 $ 69.16 3 649-063-010 2,080 3/8/1995 $178,500 $ 85.82 4 649-071-005 1,882 4/13/1995 $160,000 $ 85.02 5 649-071-027 2,496 7/21/1995 $160,000 $ 64.10 6 649-062-020 1,834 9/5/1996 $126,500 $ 68.9.7 7 649-071-035 1,983 4/30/1997 $155,000 $ 78.16 8 649-072-M 2,370 1/15/1998 $148,000 $ 62A5 9 649-063-012 1,822 4/30/1999 $150,000 $ 82.33 10 649.061-019 1,750 5/21/1999 $150,000 $ 85.71 11 649-061.007 1,907 9/8/1999 $145,500 $ 76.30 12 649-071-006 2,197 1/21/2000 $160,000 $ 72.83 13 649-062-016 2.262 7/27/2000 $197,500 $ 87.31 14 649-071-033 1,789 3/30/2001 $ 225,000 $ 125.77 15 649-071-031 2,923 5/8/2001 $280,000 $ 95.79 16 649-MI-013 2,305 5/25/2001 $225,000 $ 97.61 17 649-072-M 1,953 8/23/2001 $168,500 $ 8628 18 649.061-015 2,116 9/13/2001 $285,000 $ 134.69 19 649-063-014 1.710 10/24/2001 $ 225,000 $ 131.58 20 649-081-006 2,128 7/5/2002 $288,073 $ 135.37 21 649-062-011 2,589 10/16/2002 $ 320,000 $ 124.56 22 649-063-005 2.526 12/26/2002 $ 277.000 $ 109.66 23 649.063-015 1,935 2!7/2003 $ 247,000 $ 127.65 24 64%463-008 1,928 5/22/2003 $225,000 $ 1.16.70 (29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • AuviSORS 45 405 Market Analysis As shown, values have generally trended up for units in this neighborhood, off of Jefferson Street. For this reason, the comparables located off of Jefferson Street are adjusted downward in the Sales Comparison Approach for their superior location. This feature is partially offset by the fact that the subject units are located on the golf course. While golf course locations typically command premiums, the premium for the subject lots is somewhat limited slightly as the lots located on the east side of Jefferson front on a short course. All of the lots front on public golf, which is an inferior attribute as compared with private' club locations. However, upward adjustment is applied to all of the off -fairway comparables in the Site Niew category. Conclusion The Jefferson Street exposure of the subject lots is the dominant physical feature of all of these units. The location is among the least desirable in the City of La Quinta, and consequently, these units carry overall low values as compared with the new homes located in the adjacent Indian Springs Country Club area. The situation is getting worse, as traffic on Jefferson continues to increase. While overall residential market conditions are continuing to increase in the regional market, the value trend for the subject units is flat to decreasing slightly. The decreasing value trend on Jefferson is expected to continue as traffic increases. on Jefferson Street. As shown by comparing the PSF sale prices for units on Jefferson, to those off Jefferson (refer to the 2 tables of historical sales), it is clear that the market is not willing to pay the same PSF prices for unit on Jefferson as compared with those off Jefferson, where there are a number of sales with over $100 PSF sale prices. Alternatively, the highest PSF price paid on Jefferson Street in .the past approximately 12-years is just over $86 PSF. Net of any eminent edomain action, these trends are expected to continue through the foreseeable future. (30) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS 0 Uso" 406 Site Analysis Subject Plat Nov APN 649.07, Riverside County, CA (31 CAPITAL REALTY ANALYSTS REAL ESTATE Amman 9 ANALYsTs 407 07 Site Analysis Subject Plat Map APN 649-09, Riverside County, CA r x = Y � 1 �® it ft r� a N `v •3 p �b (32) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 0 ANALYSTS 0 VISORS 408 08 Site Analysis Subject Plat Map APN 64944, Riverside County, CA i t K iiI i( (33) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMsERs • ANALYSTS • Q mm 409 Site Analysis Location: East and west sides of Jefferson Street, Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification:' APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Zoning: Site Size: Shape: Dimensions: Frontage: Topography: According to the C ity o f L a 'Quinta Z oning M ap, a II o f the subject parcels are zoned RL, Low Density Residential. The existing- zoning is considered. reasonable and appropriate.. No change in zoning is likely as of the date of value. According to Riverside County .Assessor's Plat Maps, the site sizes of the subject parcels are as follows: 2 840-071-000 ---Ems 8 Hewn Wall 48055 Jefferson Street 3 549-071-010 Indian Sp Inns Lend Co NIA 4 649-071-011 David F. & Pabfc* L. Peiarson 46115 Jefferson 811" 5 649-071-012 BIN 3 Suz* Waggoner 46145 Jefferson Steel 8 649-071-013 Eugene T. & Carol A. Feack 46175 Jefferson Street 7 649-071-014 David A. 3 Carol A. Elrod 9 649-071-015 Moen 8 MNa Nkokh _ 23SWW 9 649-071.016 Pa*y Rolland 46 5 JeRarsn Street 10 649-071-017 Shel* A. Krokoff 4305 Jefferson Street 11 649-071-018 Tbnothy K. Reynolds 4846395 395 Jefferson Street 12 649-071-019 Ronald Aslorp Jefferson Sheet 13 649-071-020 Jeff L. & Patricia C. LN*y NIA 14 549-071-021 Jeff L. 3 Palrfe* C. LINY WA 15 649-071-029 JeffL 8 Pshki C. LNley WA 15 8494)90-001 Harvey A. 8 Audrey R. Mo* 46170 Jefferson Sir" 17 649-090-002 Elaine L. 8 Robert L. Culp 48200 Jefferson SV" 19 849-090-003 Emma Rodde 46250 Jefferson Steel 19 649-090.004 Edward E. a Mar* A. Waldo 46280 Jefferson 80*9 20 849-0-005 90 21 649.090-M William Hal Mir* Rodriguez 48390 Jefferson Street 22 8494=-007 Charles J. & ANoe S. ZNinsky WA 23 849-090-008 Sue F. Stedkng 46450 Jefferson SVeet 24 8494)90-009 John D. 3 Joey P. Alexander 46480 Jefferson St►Nt 25 649.141.001 Leonard C. 3 Margaret R. Henderson 8W20 Visla Grande Irregular. See Plat Maps See Plat Maps E & W sides of Jefferson Street Finished residential lots. mull 7.841 7,841 7.841 7,841 7.841 7.841 7.841 1Q,454 503 8,712 1.742 7.841 7.841 7.841 7.841 7.841 7,841 7.841 7.841 9.145 10.454 -(34) CAPITAL REALTY ANALYSTS REAL ESTATE ArflwsENs • ANALYSTS • ADVISORS 50 4 1. 0 Site Analysis Accessibility: Very Good Street Asphalt paved Improvements: Utilities: Utilities are available by the following utility companies: Electricity: Imperial Irrigation District Gas: The Gas Company Telephone: Verizon Water: Coachella Valley Water District Sewer. Coachella Valley Water District Flood Zone: According to the Flood Insurance Rate Map, Community Panel Number 060709 0005 B, dated August 19, 1991, the subject property is located Flood Zone X. Zone X is defined as follows; "Areas of . 500-year flood; areas of 100-year flood with average depths of less than 1 foot, or with drainage areas less than 1 square mile; and areas protected by levees from the base flood." Drainage: Surface drainage on the subject appears adequate. Hazards:. Other than' the fact that some parcels abut the Whitewater storm channel, none noted. As a real estate appraiser, I am not qualified to evaluate the site for toxic waste or hazardous substances. Therefore, the property has been appraised as though free of such substances. (35) CAPITAL REALTY ANALYSTS REAL EnATE APPRmsm 9 AMLYsrs •epvMOR.S 411 Site Analysis Soils: Earthquake Hazard: The Appraiser was not provided with a soils report for the subject property. This report assumes that there are no hidden or unapparent conditions to the soil or subsoil that would render the parcel more or less valuable. My physical inspection of the subject property did not reveal evidence of obvious soils problems. The Appraiser is not qualified to make a determination as to the existence or non-existence of hazardous materials on the subject. According to Plate 1A of the Seismic Geologic Map, dated January .19, 1982, revised 1988, the subject property lies within a boundary III Earthshaking Zone. The subject property is not located in an Alquist-Priolo Special Studies Zone, or in areas determined to be in a liquefaction hazard area. The subject is not located in an Area of Potential Subsidence. School District: Desert Sands Functional In physical respects, the functional adequacy..of the Adequacy of the land "As Is" considered impaired due tot he Jefferson Site, ,,As Vacant": Street frontage, as both traffic and noise are negative value influences. Additional comments are located* in the Highest and Best Use Analysis of this report. Special Resources: The course of normal data gathering and analysis, and a visual inspection of the subject, did not reveal any evidence of. natural, cultural, recreational or scientific resources present upon the subject site. Units of In the subject marketplace, vacant land of the subject's Comparison: size and type is typically sold on a per developable lot basis. The price per developable lot is applied as the .unit of comparison in the "As Vacant" condition. (36) CAPITAL REALTY ANALYSTS REAL ESTATE A"Rmsmm • ANALYSTS Vwn 412 Site Analysis Relationship to The subject property conforms to the existing uses in Adjoining the subject neighborhood, which include a mix of older Properties: residential development, along with a significant amount of new residential development. The homogeneous zoning in this area leads me to- conclude that SFRs will continue to be a conforming and homogeneous in the short term. (37) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMsEn • ANALYSTS e�VWU 413 Site Analysis Zoning Map (38) CAPITAL REALTY ANALYSTS REAI. ESTATE ApmAmm • ANAI.YsPS • ADvwm 54 414 Site Analysis Flood Zone Map O i • i { ww.x xw. ww.w..ww... !fog •0IU6f W, •A/ \ ,x I ;iYl„\H VI\ 1 ..a I ml am xwnvy.r. - � 1. • wr nvrao : s: � nil �(��T/.•...._... , _,. 1 (39) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 55 415 � � a. .. } � ,w ti'r t � x�� ys 27 � trt $ ✓ - _: N.� -� j S. :. �. � .. ,, a 1 �= ,; r 4i� _ � wig/ ,�' t l' 4 //// w , �.: E?F! � �. ` {'k ,�: r :,: • _ y;, :; T.'- � -c� '~ 4 �, �� wM • I� Hiohest and Best Use Analysis Highest and Best Use is defined as: 1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as. defined, as of the date of appraisal. 2. The reasonably probable,and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most. profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a speck use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations, the highest and best use of land may b e for p arks, g reenbelts, p reservation, conservation, w ildlife habitats, a nd the like.' In estimating the highest and best use, there are essentially four stages of analysis: 1. Legally' Permissible: What uses are permitted by zoning and deed restriction for the subject site? 2. Physically Possible: What are the physically possible uses for the subject site? 3, Financially Feasible: What physically possible ted legally permissible uses will produce a .net return to the owner of the s 4. Maximally P roductive: Among the financially feasible uses, which use will produce the highest net return or the highest present worth? The following tests must be met in estimating the highest and best use: The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. To estimate the highest and best use, these tests are applied to the subject property (1) as if vacant and available for development, and (2) as presently improved. American Institute of Real Estate Appraisers. The Dictionary of Real Estate ADDraisal (Chicago IUlnois: American Institute of Real Estate Appraisers, 1964), Page 152 (41) CAPITAL REALTY ANALYSTS REAL ESTATE A►PRAISERS • ANALYSTS • t7SORS 417 Highest and Best Use Analysis "As If Vacant" r. Legally Permissible The legal restrictions that apply to the subject are the public restrictions of the City of La Quinta's RL, Low Density Residential zoning ordinance. A large number of similar zoned parcels have been successfully developed in area of the subject, with no atypical legal constraints. The legal constraints of the subject are considered reasonable and appropriate. and would not impair development of the site to its highest and best use. Physically Possible The subject parcels were subdivided and designed to be detached single- family residential lots, located on fairways of the Indian Springs Country Club. The size, shape, topography, and utility installations are all designed to support residential development. These aspects of the site represent the s tandard of a cceptability f or s imilar r esidential I ots. The I ots front of Jefferson Street which is a major regional artery. The traffic impact and noise levels make these lots much less desirable as compared with neighboring residential lots, not located on Jefferson Street. While this feature does not prevent development, the lack of feasibility has prevented 8 of 22 lots from being developed. Financially Feasible Financial feasibility for residential development is typically estimated with a simple comparison of costs and benefits. If the cost to construct a prospective development exceeds the present value of the cash flows to be derived from the development, the proposed use is not -considered feasible. Alternatively, if the present value of the expected income streams exceeds the cost to produce the proposed development, the use is considered financially feasible. As described above, the fact that 8 f 22 lots remain undeveloped on Jefferson Street after over 40-years, while several hundred lots have recently been developed off Jefferson Street in the immediate area of the subject, suggests that financial feasibility for speculative development of residential units on the subject lots would not be financially feasible as of the date of value. Additional evidence is provided by the. fact that no developers, owners, or lenders are risking debt and equity on new development n these lots. (42) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS 0 VORS 418 Hiahest and Best Use Analysis "As if Vacant" Maximally Productive The physically possible and legally permissible uses for the subject property are present in the subject region. Other similar properties in the subject region have been successfully developed and absorbed. As current financial feasibility for development does not appear adequate as Of the date of value, the most maximally productive use of the site, "As Vacant", is to hold the lots for investment until such time as development of the lots becomes financially feasible. "As Improved" All of the improved homes add an increment of value that exceeds the current land value. Consequently, the highest and best use of the lots as improved is to remain as improved. REAL ESTATE APPRAISERS 0 ANALYSTS 0 VJ Am 419 19 Appraisal Process The first step in the appraisal process is to identify the appraisal problem. Every real property is different and there are many. types of values that can be estimated for any real property. For this appraisal assignment, the required value. estimate for the subject is as follows: ♦ Just Compensation For The Part Taken The definition of market value has been defined in the Purpose of the Appraisal section of this report. The subject property and the type of value desired have been identified. Through the appraisal process, it is my intent to present a properly supported value estimate for the subject property. The market data, analysis and conclusions presented in the appraisal report should cause. a reasonable person to reach similar, conclusions.. There are three traditional approaches to estimating market value for this property type. These are the Cost Approach, the Sales Comparison Approach and the Income Approach. The approaches to value, and their applicability to this analysis, are described. as follows; Cost Approach "A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting accrueq depreciation from the reproduction or replacement cost; and adding the estimated land value, plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised." The Cost Approach is considered most relevant when the improvements are new, as depreciation can be estimated with a reasonable degree of accuracy. Another case when the Cost Approach works well is when market conditions are such that the typical buyer would realize similar yields b y b uilding n ew, o r a cquiring a n e xisting s et o f i mprovements. I n this case, the vacant subject parcels do not have any improvements with an associated cost. Consequently, the Cost Approach is not applied as a valuation method for the vacant parcels. The Cost Approach is applied to estimate the market value of the improved residential parcels. -'The Dictionary Of Real Estate Appraisal Third Edition Appraisal Institute 1993 Page 81 (44) CAPITAL REALTY ANALYSTS REAL ESTATE Amussm • ANALYSTS SOO420 Appraisal Process Sales Comparison Approach "The Sales Comparison Approach is the process in which a market value estimate is derived by analyzing the market for similar properties and comparing these properties to the subject property. Estimates of market rent, cost, depreciation, and other value parameters may be derived in the other approaches to value using comparative techniques. Often, these elements are also analyzed in the sales made to the sale prices of the determine (estimate) the adjustments to be comparable properties. The comparative techniques of analysis applied. in the sales comparison approach are fundamental to the valuation process."s The Sales Comparison Approach can be a strong indicator when sufficient comparable sales data exists, and is generally the best technique available to estimate the market value of vacant land, such as the vacant subject parcels. Additionally, SFRs such. as the improved subject parcels are typically acquired based on their comparability to functionally equivalent substitute properties. Consequently, the Sales Comparison Approach is applied to estimate the market value of. all of the subject parcels. Income Approach "A set of procedures through which an appraiser derives a value indication for an income -producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in 2 ways. One year's income expectancy can be capitalized at a market -derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternatively, the annual cash flows for the holding p eriod a nd t he r eversion c an b e d iscounted a t a s pecified y ield rate. Lacking improvements with income earning ability for the vacant parcels, and lacking sufficient rental comps for the improved parcels, The Income Approach is not applied for any of the subject parcels for this analysis. A reconciliation completes the analysis leading to the final value estimate." Th A al of Real Estate Tenth Edit, Appraisal Institute, 1992; Page 367 ' The Dictionary Of Real Estate Aooraisal, Third Edition, Appraisal Institute, 1993, Page 178 " Note that computerized spreadsheets may be used in this report. Numbers are typically accurate to 6 decimal points and rounded to thenearest whole dollar or 100th of a percent. Manual calculation of totals may result in Insignificantrounding errors.— . (45) CAPITAL REALTY ANALYSTS RpAL ESTATE APP WSEU • ANALYSTS � m 421 Sales Comparison Approach The Sales Comparison Approach is the primary method applied to estimate the market value of all of the subject lots and homes. The Sales Comparison Approach is defined as follows: "A set of procedures in which a value indication is derived by comparing the properly being` appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale . prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available."10 As described in the Market Analysis and Appraisal Process sections, 4 sales are applied to estimate the market value of the homes and lots. Two sets of sales are included, One set of 4 sales is applied for the single-family homes, and another set of 4 sales are applied to estimate the market value of the fee simple estate in the subject vacant lots. Since the same set of sales are common to all of the homes and lots, the sales are. described once in this section, as follows: _ Single Family Home Comparables Comparable $ale Number 1 Comparable sale number 1 is the March 5, 2003 sale of a 1,879 SF home located on Vista Grande. This home is located immediately east of the subject Henderson (APN: 649-141-001) property. This sale was selected for comparison as it is located on one of the subject streets, and has a view over the wash of -the golf course. At 10,454 SF, this is one of the largest lots in the Tract. The unit has a gated entry with a front -yard pool, which is common among several of :the subject SFR's. The unit has a split -bedroom floor plan and is on sewer. The unit sold for $235,000 and is not located on Jefferson Street, which is a positive locational attribute. The unit does have a long golf course view. The original asking price was $239,000. The unit was on the market for 6 days. 10 The DicUonary of Real E tate Apgyalsai, The ADDraisal Institute (46) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 62 422 Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 2 Comparable sale number 2 is the November 2002 sale of a 1,928 SF home located on Fiesta Drive, west of Jefferson. The sale price was $225,000. This data item was selected for comparison because it is a 1964 vintage home, which has recently been extensively remodeled. Consequently, this sale should represent the top of the market for older homes such as many of the subject units; that have been well -maintained. This sale does not have Jefferson Street exposure, which is a positive locational. quality. The remodeled items include the following: Security System • New Carpet New Tile Floors • Corian Kitchen Counters New Tile Counters New Sinks and faucets in baths • New vertical blinds • New FAU New Dishwasher • New pool / deck Although the location off of Jefferson Street is superior, the lack of golf course exposure is a negative site attribute in comparison to the subject golf course lots. The original listing price was $259,000. The unit was on the market 80 days. (47) CAPITAL REALTY ANALYST6/ REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 63 423 Sales Comparison Approach Single Family Home. Comparables (cont'd) Comparable Sale Number 3 Comparable sale number 3 is the February 2003 sale of a 1,935 SF home located on Cortez Lane, west of Jefferson Street. The sale price was $247,000. The original asking , price was $279,500. The unit was on the market for 63 days. The seller had replaced the original shake roof with a new the roof just prior to the sale. Additionally, the pool and deck had recently been redone. The home has shutters on all windows. These features required a downward adjustment in the upgrades category. The unit is a superior location off of Jefferson Street. However, the lack of golf frontage. is a negative site quality. This feature is partially offset by the fact that the unit has a very long view. Comparable Sale Number 4 Comparable sale number 3 is the May 2003 sale of a 2,444 SF home located on Roudel Lane, west of Jefferson Street. The sale price was $240,000. The original asking price was $299,950. The unit was on the market for 198 days. The long marketing time, and wide disparity between the listing and selling prices demonstrate the market resistance and price barrier for older improvements in this sub -market. This sale was selected to demonstrate a larger unit sale. Additionally, this is a very recent sale in the market. (48) CAPITAL REALTY ANALYSTS REM. ESTATE APPRAISERS • ANALYSTS • ADVISORS 424 64 Sales Comparison Approach Vacant Lot Comparables Comparable Sale Number 1 Comparable sale number 1 is located along Hummingbird, just west of Jefferson Street. At 20,038 SF, this lot is large for the neighborhood. The lot sold on 4/22/03 for $63,500. The lack of Jefferson Street frontage is a positive feature. The lack of golf course exposure is a negative feature. Overall comparability is considered good. Comparable Sale Number 2 Comparable sale number 2 is the 8/13/01 sale of a 10,019 SF SFR lot, located just west of Jefferson Street. The sale price was $46,000.. This data item is considered typical of lot values off the golf course, in the immediate area of the subject. Overall comparability is considered average. Comparable Sale Number 3 Comparable sale number 3 is an example of a larger lot, located in the Cove area of south La Quinta. Lacking sufficient sales .from within the immediate area of the subject, I elected to pick a sale from the Cove area, where there are older homes mixed with newer homes, such as those of the subject area. However, the Calle Tampico location is considered superior. The lot sold on 1/16/03 for $80,500. Comparable Sale Number 4 Comparable sale number 4 is a 6,098 SF SFR lot sale taken from Laguna De La Paz. This sale was selected for comparison, as the lot fronted on the lake, which is considered to be of a similar value as compared with a golf course exposure. The development is gated. The lot sold on 1/23/03 for $73,000.Overall comparability is considered average. Valuation Sections The following sections outline the valuations for each of the subject parcels: (49) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVjSQRS A 2 5 b� t • • Rackie: 649-090-003 Owner of Record: Property Type: Location: Identification: Census Tract Number: Site Size: Site View Elements: Emma Rackie Single Family Home 46250 Jefferson Street, La Quinta, CA. APN: 649-090-003, Riverside County, CA. Tract 452.04 7,841 SF East facing lot with a golf course view, and Jefferson Street frontage. Improvement The property is improved with a 2,651 SF, Class D Description: (wood frame) 3 bedroom / 2 bath single-family home, and a 4 83 S F 2 -car g arage, w hich i s a ttached t o t he main house.' The roof is wood shake. The improvements were constructed new in 1969, and were observed to be in poor to fair condition on the date of value. Estimated Economic 60-Years Life: Estimated Effective Age: 30-Years Highest And Best Use, "As Vacant": Highest And Best Use, "As Improved": Hold for investment Remain "As Improved" Final Value Estimate: $232,000 Sales History of the According to public records, the current owner acquired Property: this property in 1981 for an undisclosed sale price. The property is not currently listed for sale. (133) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • Ammon 66 426 he c lrapl�s i elaAibti� `� the Subject Property The subject property viewing NE A glass enclosure was added several years ago. This area is enclosed, and is counted in the gross living area. The subject property viewing E trom Jefferson Street The side yard has a covered patio with a 6'2" clear ht. (1 34) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 67 427 Floor Plan I4 .as >esa AREA BREAKDOWN . UV NG f AREA CALCULATIONS SUMMARY .. ism VA"t v3«s 2ee3.2e ; lNl.fs i M"t rs~ ONEy* Iq.ee i w.eo e.o a ti.o , iN.ee 7e.e i ■ 30.0 sN.N ss.s 35.0 � es:.se ; ' 1 is.0 ■ 25.0 see.oe _ i { { ' is.s a si.s sss.is i TOTAL LIVABLE (rounded) 2551 ! ( 6 Cabuled" TOW (rounded) 1 2651 (1 35) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 68 428 • Cost Approach Address: APN: Estimated Site Value: Estimated Reproduction Cost New: Dwelling. Pool Other Garage Multiplier Total Cost New Physical Depreciation Functional Depreciation External Depreciation Depreciated Value Site Improvements Total Cost -Based Value 46250 Jefferson Street 649-090-003 $ 72,000 SF Cost Extension 2,651 $ 58.74 $155,720 1 $ 20,000 $ 20,000 500 $ 15.71 $ 7,855 1.1413 $ 281,51.4 50.00% $ 91,787 0.00% $ 0.00% $ - $189,726 $ 35,000 $ 224,726 $224,726 $225,000 (Rounded) (Two Hundred Twenty Five Thousand Dollars) (1 36) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 69 429 • • QQv opO oQOOQ78Lf � � W N. N» e i» N eNNN'f 5 z 8 A N N A k) i,l a . a co)�f I tE N N V d .C4 N M r000777 � C H N Sp» N W»» C Q ' v H .H.. H ors v My H Z � $ $ m C4 $ E E E e° N ' � o (L P g � Z » H 4 j v lj91 r- $ - �pQ�y+ n Nm Q en US — N p� � C H N � (A (� N N� N � co N p pp off N � A »» N40N T C Ls QR l0 po {6 Ol Q G 3E CC N CO) N atip- N 3 d fA C O�Ofs O Z a L c W w ILmd� �Z mrrg gI I d g j Co 3 " 70 4,30 Conclusion The cost -based indicator came in at $225,000. The Sales Comparison —based indicator came in at $232,000. This home appearedn the be I Salesge Comparition son for its effective age. Most emphasis placed o Approach. Based on the available data, it is my opinion that the market value of the subject property, based on the definition of market value described in the introduction section of this report, is as follows: $232,000 (Two Hundred Thirty Two Thousand Dollars) (138) CAPITAL REALTY ANALYSTS REAL ESTATE ArrRA an • ANALYSTS • ADVISORS 71 431 Certification certify that, to the best of my knowledge and belief, r The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or.the occurrence or a subsequent event. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity, with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person(s) signing this report. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of.the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration Date: October 24, 2005 (1 77) CAPITAL REALTY ANALYSTS RFi11. ESTATE Al'RMSERS • ANALYSTS • ADVISORS 72 432 (178) CAPITAL REALTY ANALYSTS REAL Es-rATE Arnwsms • ANALY 9 ADva Rs 433 73 Assumptions and Limitina Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or formatters including legal or title . considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The. information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. The appraiser reserves the right to make adjustments to thee. analyses, opinions and conclusions in this report, as may. be required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with.all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions u nless n onconformity h as b een i dentified, d escribed a nd c onsidered i n the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is confined within the. boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material. on or in the property that would cause a loss in value. No responsibility is assumed fore such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. (179) CAPITAL REALTY ANALYSTS aL%L ESTATE A.rR an * ANALYSTS * ADVISORS 434 Assumptions and Limitina Conditions 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the. written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The' appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property. in question unless arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, t he i dentity o f t he a ppraiser, o r t he f it m w ith which t he a ppraiser i s c onnected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.. 16. Improved Properties - The Americans with Disabilities Act CAW) became effective January 26, 1992. I (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADX It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since 1 (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to the Appraiser(s), and described in the Improvement Description section of this report. 18. The legal descriptions, site sizes, dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The 'forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. (180) CAPITAL REALTY ANALYSTS Rom, isTAn APPRALS s • ANALY s • ADVISM 4 3 J 75 MICHAEL A. SCARCELLA, MM Education 1982 B.S., Business, University of Nevada, Las Vegas 1991 — Real Estate Appraisal Principles 1992 - Basic Valuation Procedures 1992 Standards of Professional Practice 1993 - Basic Income Capitalization... 1993 - Advanced Income Capitalization 1994 - Report Writing & Valuation Analysis 1995 -Advanced Applications 1996 - Federal & State Laws &.'Regulations 1997 - Standards Part A & B 1997 - Property Management 1997 Real Estate Economics 1997 - Real Estate Finance 2000 - Report Writing 2001 - Tax Free Exchanges Professional Organizations/Licensing Member of the Appraisal Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser". Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute — So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee; 1999, 2000 So. Cal. Chapter Ethics Committee . FAA Certificated Pilot #551317536 General Experience 1997 to Current Capital Realty Analysts - President .1991 to 1996 - MacKenzie and Associates - Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court . Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients. Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta P.S. Unified School District Desert Sands School District Southern California Edison Mojave Water Agency Desert Hospital Private Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States. Filter Sunrise Company Canyon Development Magellan Corporations Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Institute of the Desert Basic Capital Management Developers Attorneys Accountants Bank of America Home Savings Wells Fargo Bank El Dorado Bank Washington Mutual Bank Bank Midwest Pacific National Bank Canyon National Bank Banc One Fidelity Federal Bank Bankers Trust Company First Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Foothill Independent Bank Valley Independent Bank First Bank (181 ) CAPITAL REALTY ANALYSTS RE., Bun Arnwsm • AIULYM • ADvMM 's 436 NOTIFICATION OF RIGHT TO CLAIM LOSS OF BUSINESS GOODWILL The City wishes to acquire a portion of the property situated at (Address), California for the purpose of the Jefferson Street Widening Project, Phase 2. You have received this "Notification of Right to Claim Loss of Business Goodwill" because you have been identified as the owner of the property. In certain circumstances, the owner of a business operating on property subject to eminent domain may be entitled to claim compensation for loss of business goodwill, when it can be shown the loss is caused by the acquisition of property by the acquiring public entity, or by the project for which the property is sought to be taken. The City's offer of just compensation included in this letter does not include any amounts for loss of business goodwill. If you own or operate a business on the property which is the subject of this offer letter, you are requested to review this "Notification of Right to Claim Loss of Business Goodwill," and the "Claim for Loss of Business Goodwill," and "Loss of Business Goodwill Questionnaire" attached hereto. If you do not own or operate a business on the property, but know of a person or entity who does, you are requested to notify the City with the name, phone number, and address of such person or entity, so that these forms can be forwarded to the appropriate party. California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.5.10 of the California Civil Code of Procedure states: (a) The owner of a business conducted on the property taken, or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property of the injury to the remainder. 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill. 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code.' 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. ' Section 7262 of the Government Code refers to compensation to displaced persons for moving and related expenses as a part of the cost of the acquisition of real property for a public use. Compensation for the loss of goodwill under Section 1263.510 of the California Civil Code of Procedure will only be made to the extent such loss is not compensated for under. Section 7262. For more information regarding a business owner's eligible payments under the Relocation Assistance Program, please call Kathy Woolley at 760-772-4255. 119/015610-0008 -7- 77 4 3 419383.01 a07/29/03 • (b) Within the meaning of this article, "goodwilr, consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstance resulting in probable retention of old or acquisition of new patronage. If you wish to file a claim for loss of goodwill at this time, please complete, sign, and return the attached Claim for Loss of Business Goodwill and Loss of Business Goodwill Questionnaire within sixty (60) days of the date of this notice. In addition, please submit the information requested below. This information will assist the City in completing an analysis concerning the claim fora loss of goodwill. However, if you wish to wait until a later date to make a claim for loss of goodwill, please send us the claim, questionnaire and the other requested information at that time. State of California Income Tax Returns The law places the burden upon the business owner to provide state tax returns pertaining to the business to support the claim for loss of goodwill. Please supply true copies of your tax returns for the last five tax years, or your period of ownership if less than five years. : 6. Business Financial Statements Please provide true copies of your Balance Sheets, Profit , and Loss Statements and/or Cash Flow Statements for the current year to date and each of the prior five years or your period of ownership, if less than five years. 7. Tangible Assets Include a list of the furniture, fixtures, machinery and equipment belonging to your business. Please use the itemization sheet attached to the questionnaire. 8. Intangible Assets Include a list of such assets as patents, liquor licenses, etc. Please use the itemization sheet attached to the questionnaire. 9. Business Purchase Documentation If you have purchased the business within the last five years, please provide true copies of documentation (escrow instructions, purchase agreement, bill of sale, etc.) which provide details of the transaction including financing, the assets purchased, agreements not to compete, and how the total purchase price was allocated to inventory, fixtures, equipment, licenses, goodwill, etc. A loss of goodwill analysis and valuation normally includes a personal interview with the business owner. An interview will be scheduled after we receive the requested information. 119/015610-0008 -8- 7 Op 419383.01 a07/29/03 438 CLAIM FOR LOSS OF BUSINESS GOODWILL Business: Business Address: This form and the attached completed, signed questionnaire with tax returns and other supporting documentation constitute formal notification to the City, that the owner(s) of the above business entity contend(s) that the business will suffer a compensable loss of business goodwill due to its displacement or disruption by the proposed project. 1. Our estimate of total goodwill is $ 2. Our estimate of the compensable loss of goodwill is $ 3. The loss of goodwill after taking measured to minimize the loss is caused by: 4. The following measures will minimize the loss of goodwill: The undersigned owner or duly authorized officer has executed this notification on behalf of this business operation. Name: Date Title: Address: 119/015610-0008 -9- 79 439 419383.01 a07/29/03 • !I LOSS OF BUSINESS GOODWILL QUESTIONNAIRE Business Owner: Business Name: Business Address: Type of Ownership: Business Identification Number: 1. What type of business do you operate? What type of products are sold or manufactured? What type of services are provided or sold? 2. When was the business started? 3. When did you obtain ownership of the business? 4. How long has the business been at the above address? 5. What type of clientele does the business have? Do you have key customers or clients? 6. From what geographic area does the business draw its patronage? What percentage of the business volume is drawn from each of those areas? 7. Does the business operate'at any other location? If so, where and what percentage of total business volume is generated from each of the other locations? 8. Is the business part of a chain? Is it a franchise? If so, provide details including fees, marketing agreements, etc. 9. Who are the business's major competitors? Where are they located? (If more room is needed for any answers, please insert additional sheets and continue by number.) 119/015610-0008 0 440 o0 419383.01 a07/29/03 _10_ 10. How many days a week is the business open? What are its hours of operation? 11. How many persons are employed by the business? Please provide the following? Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 12. What were the main factors you considered in operating your business at the present location? What are the locations' advantages? Disadvantages? 13. What improvements did you make to the present location in order to open for business? 14. If you are a tenant, to what improvements do you claim ownership? 15. Were there any special requirements to open for business, e.g., rezoning, permits, special use permits, health and safety permits, environmental report, etc.? Please provide details. 16. What area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 17. If you are a tenant of the area you lease, how much, if any, is not used in your current business operation? Land sq. ft. Improvements sq. ft. 18. What future plans (expansion, etc.) do you have for the business? Please give specifics. 19. Did you have any prior plans to relocate the business? If so, where and when? 20. What would be your site and building requirements at a new location? a. Type of building (freestanding, strip center, storefront, etc:): b. Building size: C. Site size: d. Site distance from existing location: e. Parking requirements: f. Utility requirements: g. Loading docks? Truck? Rail? 119/015610-0008 _1 1 419383.01 a07/29/03 $ 441 h. Other special plant, service, or locational needs: i. Monthly rental (range): 21. Describe what problems, if any, you foresee in re-establishing the business? 22. Have you looked for or found a replacement location because of the State's project? Have you made any relocation plans? If so, provide details. 23. What, in your opinion, is the market value that a knowledgeable buyer would pay for your present business? Allocate as follows: Value of the tangible assets: $ Value of the intangible assets: $ Value of the goodwill: $ Total value: $ 24. What is your estimate of loss of the goodwill which may result from relocation or disruption of your business? 25. What do you believe would cause this loss of goodwill? Do you believe the loss would be temporary or permanent? 26. What reasonable steps can you take to avoid or reduce this loss of goodwill? 27. How would you perform these steps? 28. What do you think the cost of these steps would be? 119/015610-0008 _ 1'2_ p 2 419383.01 a07/29/03 vL 442 If you have already relocated or will remain at the existing location but have suffered a disruption in your business at the time you submit your claim, please answer the following questions: 29. The address of the new location (if applicable). 30. Date business closed at the old location and the opening date at the new location. 31. Price paid for new location or copy of lease/rental agreement. 32. Improvements made and their individual cost in order to reopen (or continue) business. 33. In its relocated or disrupted state, what area of the entire property does your business occupy? Land sq. ft Improvements sq. ft. 34. Hours of operation at the new location. 35. How many persons are. employed in your relocated or disrupted business? Please provide the following: Position Days/Week Worked Hours/Week Worked P ay Owner Manger Others (list by job title) 36. Market area served at new or disrupted location. 37. Customers lost, if any at new or disrupted location. 38. Number of new customers at new or disrupted location. Please include the signature of person preparing the answers to this questionnaire and nature of interest in the business. Name: Date: Interest: 119/015610-0008 -_ 443 419383.01 a07/29/03 13 83 0 P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 December 29, 2003 Emma Kriger 79291 Horizon Palm Circle La Quinta, CA 92253 ATTACHMENT 2 (760) 777-7000 FAX (760) 777-7101 Re: ASSESSOR'S PARCEL NUMBER 649-090-003 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46250 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46250 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-090-003 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following. conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for 9/015610-0008 4s8250.01 a12/24/03 84 / � Emma Kriger December 29, 2003 Page 2 this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For, your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La. Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to. acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La 119/015610-0008 p 458250.01 a12n4/03 85 445 Emma Kriger December 29, 2003 Page 3 Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Ve ly y 00, . Katlkrine Jenson City Attorney, City of La Quinta Attachment 119/015610-0008 O c 458250.01 sl=4,03 86 446 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 37 Of Tract 2190, As Shown By Map On File In Book 41 Pages 55, 56 And 57 Of Maps, Riverside County Records. APN 649-090-003 87 447 9 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certai Real Property Located At 46250 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Emma Kriger 79291 Horizon Palm Circle La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collectioi and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan 6 Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I ar confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after da of deposit for mailing in affidavit. Executed on December 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. I ,., Lauren Yersick (Type or print name) /lignature) 2046/015610-0008 463467.01 a12/29/03 88 , P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 December 29, 2003 Emma Rackie 132 N. Merrimac Drive, Apt. A Anaheim, CA 92807 Re: ASSESSOR'S PARCEL. NUMBER 649-090-003 Notice. Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46250 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46250 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-090-003 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project'j. California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the. owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for 119/015610-0008 89 458250.01 al2/24/03 , • Emma Rackie December 29, 2003 Page 2 this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed. within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted . Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed allotice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La 119/015610.0008 458250.01 a12/24/03 90 450 Emma Rackie December 29, 2003 Page 3 Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. jKath ly yo'ne Jenson City Attorney, City of La Quinta Attachment 119/015610-0008 458250.01 a12n4/03 91 451 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 37 Of Tract 2190, As Shown By Map On File In Book 41 Pages 55, 56 And 57 Of Maps, Riverside County Records. APN 649-090-003 92 4�� 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certai. Real Property Located At 46250 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Emma Rackie 132 N. Merrimac Drive, Apt. A Anaheim, CA 92807 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collection and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same c in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after dal of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 2046/015610-0008 93 4 J 3 463467.01 a12/29/03 ,4 TW* P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 December 29, 2003 Tenant 46250 Jefferson Street La Quinta, CA 92253 Re: ASSESSOR'S PARCEL NUMBER 649-090-003 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46250 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46250 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-090-003 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent'to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for 119/015610-0009 458250.01 a]2/24/03 Tenant December 29, 2003 Page 2 this purpose. If the City Council finds that these conditions have been met, the City'Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, ' the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La 119/015610-0008 458250.01 al2/24/03 95 4 J 5 • Tenant December 29, 2003 Page 3 Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not thhis hesitate contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation VeryZernine , M. Kanson City Attorney, City of La Quinta Attachment 119/015610-0008 96 459250.01 al2/24/03 4 5 6 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 37 Of Tract 2190, As Shown By Map On File In Book 41 Pages 55, 56 And 57 Of Maps, Riverside County Records. APN 649-090-003 97 451w 9 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 W. 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certaii Real Property Located At 46250 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Tenant 46250 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collectior and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same d in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after dat of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 2046/015610-0008 463467.01 a12/29/03 98 458 W, 99 t {' ( ATTACHMENT 4 Westward H.o Property Owners' Association 0#A-.. o• La Quints, City Council Members Ca nA From: Jefferson Street Property Owners G rn Date: a,n2,o�3 - �:� m c•� p = m ti Dear Council Members; The property owners on Jefferson Street that will be atttted by the road widening, wish to bring this informative letter to the attention of the La Quinta City Council. There are i & homes and SS lots between the wash and NVestward Ho Drive. The names that appear below have stated they prefer to have their homes and lots purchased by the City under Eminent Domain. The owners on both sides of Jefferson Streeltatve shown a majority of signatures below. This fact would make the case for widening the street equally on both sides rather than bend it either way. 1. Name !�- Address O 2. Name Address yZ. Irr ea;-eg 3. Name 6-14 Address xe— oli 4. Name �~ Address 5. Name 4" Address 47 v 6. Name ' Address . i 7. Name_ Address Sell R,5,,.II?n�0:I- er 100 Westward 146 Property Owners' Association 8. Name �... Address 410 9. game Addre 10. Name Add ri 11. Name Addn 12. Name Addri 13. Name Addri 14. Name .mow• Address y 15. Name -av, Address 1411, V S' 16. Name Address A le�nde� 17. Name Address 18. lame Address ,n� � �•;ll Cam" //!' /^ cr �, /,! � r t.. IA y1 79860. Fiesta Drive • La Quinta, CA 92253 • (619) 347-8351 461 1.',� Wo SC �i r0/LL/1 5rnyO' ATTA 5 ---- - T,,i 8 101 4 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. BEY. + KATHY JENSON IM002/004 ATTACHMENT 6 PLANNING COMMISSION RESOLUTION 2003-059 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING FINDINGS OF CONFORMITY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 65402, FOR A POTENTIAL ACQUISITION OF PROPERTY FOR THE WIDENING OF JEFFERSON STREET. GENERAL PLAN CONFORMITY FINDING APPLICANT: CITY OF LA QUINTA WHEREAS, sold Section 65402 requires the jurisdiction's planning agency's (i.e., Planning Commission) review and report upon whether the proposed acquisition of real property for public purposes Is consistent with the adopted General Plan; and WHEREAS, the Planning Commission of the City of La Quints, California did on the 12th day of August, 2003, hold a pubic meeting to consider a finding of conformity with the General Plan for said potential Project Site, more particularly described as, APN: 649-071-008 THROUGH 021 AND 029; 649-090-001 THROUGH 009; AND 649-141-001 WHEREAS, the Planning Commission did make the following findings of conformity with respect to the proposed project: The proposed acquisition is in conformance with the La Quinta General Plan, as follows: 1. LAND USE ELEMENT: The recently adopted General Plan Land Use Element designates the properties as Low Density Residential (LDR), up to four dwelling units per acre. The Element indicates the need to maintain compatible high quality land uses. The widening of Jefferson Street will not alter the surrounding land use designations, and is consistent with the Element. 2. CIRCULATION ELEMENT: This Element designates Jefferson Street as a Major Arterial Road with a 120 foot width right-of-way. This project will allow the street to be expanded to comply with this Element. 3. OPEN SPACE ELEMENT: No key planning issues or policies are identified. 4. PARK AND RECREATION ELEMENT: No key planning issues or policies are identified. 1024 6 3 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. OEV. KATHY JENSON 1a003/004 Plennin® Commission Resolution 2003-059 Jeffsrson Street Widening . General Plan conformity Finding , Adopted: August 12, 2003 Pape 2 5. ENVIRONMENTAL CONSERVATION ELEMENT: No key planning issues or policies are identified. 6. NATURAL RESOURCES: This Element provides several policies and programs designed to protect and preserve the unique and/or valuable resources, including biologic resources. The properties at issue are disturbed. To the extent applicable, this project will be subject to the requirements of the Coachella Valley Fringe -Toed Lizard Fee Mitigation Program and other applicable mitigation measures. 7. INFRASTRUCTURE AND PUBLIC SERVICES ELEMENT: No key planning issues or policies are identified. 8. ENVIRONMENTAL HAZARDS ELEMENT: This Element indicates that the site is within an area that is susceptible to wind-blown sand, collapsible soils, potential liquefaction hazard, and seismically induced settlement. If the properties are acquired, the widening of Jefferson Street will most all applicable engineering requirements, and the street and landscape improvements will reduce the potential for blowsand in the vicinity of the subject property. 9. CULTURAL RESOURCES ELEMENT: No key planning issues or policies are Identified. 10. HOUSING ELEMENT: As a result of widening Jefferson Street the project requires acquisition of residential and vacant lots. Acquisition of the residential properties will not displace substantial numbers of people or existing housing, and will not necessitate the construction of replacement housing elsewhere, because the acquisition involves a relatively small number of properties and the current housing conditions reveal that there is more than adequate existing housing in La Quinta to accommodate the displaced households. Likewise, state mandated relocation benefits will be paid to applicable displaced persons In accordance with the Uniform Relocation Assistance & Real Properties Act of 1970, as amended, and owners of the residential property will be compensated fair market value for their property,. determined on the basis of the highest and beat use. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the recitations are true and constitute the findings of the Planning Commission in this case; and P:loscarlaescluttonslreso jefferson st,doc 103 464 Y , 01/22/2004 12:51 FAX 7807771233 LA QUINTA COW OEV. + KATHY JENSON IM004/004 Planning Commission Resolution 2003.059 Jefferson Street Widening • General Plan Conformity Finding Adopted: August 12, 2003 Page 3 2. That it does hereby adopt this finding of conformity for the reasons set forth in this Resolution, and as shown on the Map attached hereto as Exhibit "A". PASSED, APPROVED and ADOPTED at a regular meeting of the La Quints Planning Commission held on this 12th day of August, 2003, by the following vote to wit: AYES: Commissioners Abels, Daniels, Tyler, and Chairman Kirk NOES: None ASSENT: Commissioner Quill ABSTAIN: None ATTEST: tRRY HpRMAN, Community Development Director Ity of La Quints, California P:10scer\Resolutionslreso jefferson st.doo lil"CIRK, Chairman of La Quinta, California 104 465 i G� 9w OF f1 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: February 3, 2004 BUSINESS SESSION: ITEM TITLE: Public Hearing to Consider Adoption of a Resolution Declaring the Public Interest and Necessity of CONSENT CALENDAR: Acquisition of Property Located at 46-055 Jefferson STUDY SESSION: Street, La Quinta, California (APN 649-071-009), for 13 Jefferson Street Improvements, Phase II, Highway 111 PUBLIC HEARING: to Indio Boulevard, Project 2000-19 RECOMMENDATION: Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of property located at 46-055 Jefferson Street, La Quinta, APN 649-071-009, for the purpose of improving Jefferson Street. FISCAL IMPLICATIONS: The appraised fair market value of the property proposed for acquisition is $243,000. In addition to that expense, the property owners will be entitled to certain relocation benefits. Additional costs will be incurred in legal fees, appraisal fees and court costs relating to the initiation of eminent domain proceedings if the Resolution is approved and the matter proceeds to court. The proposed Jefferson Street Phase II improvements are funded in accordance with the Reimbursement Agreement and Memorandum of Understanding between the City of La Quinta, the City of Indio, the County of Riverside, and the Coachella Valley Association of Governments ("CVAG"), as amended. The overall project costs for the Phase II improvements are estimated at $16,700,000. CVAG has agreed to pay 75% of these costs. The remaining 25% will be paid by the jurisdiction in which the improvements are constructed. The City of La Quinta's funding contribution (25% of the project costs within its jurisdiction) is estimated at $2,797,250. Of this amount, the City has been provided a credit in the amount of $963,000 from State Transportation Improvement Program funding obtained by the City to offset the costs r 466 of the newly included bridge across the Whitewater River. The City has also been provided a credit in the amount of $1,647,184 as repayment for the regional share advanced by the City for the Washington Street Improvements. The City shall be responsible for repaying any balance of its portion of the proposed improvements minus its credit in the amount of $2,610,184. Considering the City's estimated costs are $2,797,250, the City's out-of-pocket share will be approximately $186,466. However, the City's actual contribution will be calculated based upon the project's final costs. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff proposes, for the City Council's consideration, and recommends approval of, a Resolution of Necessity to authorize acquisition of the property located at 46-175 Jefferson Street, within the city limits of the City of La Quinta. The property is to be utilized for the widening of Jefferson Street, Project 2000-19. This property was appraised by Michael A. Scarcella, MAI, of Capital Realty Analysts. Mr. Scarcella reviewed the applicable market data, identified and analyzed relevant comparable sales, and issued his opinion that, as of the date of value (June 10, 2003), the fair market value of the property was $243,000. A legal description of the property referenced in the proposed acquisition is attached to the Resolution as Exhibit A. Staff obtained title information reflecting the vesting of the property from Chicago Title Company, and an offer to purchase the property for the full amount of the appraised value was sent to the record owners on July 30, 2003. The offer letter transmitted all comparable sales upon which the appraiser based his opinion of value and the relevant parts of his appraisal report. A copy of the offer letter is provided as Attachment 1. Staff, the City's right-of-way consultant (Overland, Pacific & Cutler, Inc.), and the City Attorney have communicated with the owners in an attempt to review any information the owners may have regarding value, and to work towards the goal of reaching an agreement on the transfer of the property by way of a negotiated acquisition. As of the date of this report, no such agreement has been reached. As such, staff is now recommending the City Council consider and adopt a Resolution of Necessity, authorizing acquisition of the property by exercise of eminent domain. Under Code of Civil Procedure Section 1245.220, the City may not commence an eminent domain proceeding until the City Council has adopted a "Resolution of 2 467 Necessity." As a part of the Resolution, the City Council must find and declare each of the following: 1. The public interest and necessity require the proposed project. 2. The proposed project is planned or located in the manner that would be most compatible with the greatest public good and the least private injury. 3. The property described in the Resolution is necessary for the proposed project. 4. An offer meeting the requirements of Government Code Section 7267.2 has been made to the owner of record. The owners of the property are entitled to be heard on this subject, and on the issue of whether the City has followed all other procedures and is otherwise authorized to acquire the property by exercise of eminent domain. Notice to the property owners of this Resolution of Necessity hearing, and the subjects to be considered and proposed to be determined, was sent to the record owners on December 29, 2003. A copy of this notice is provided as Attachment 2. As of this date, the City has received no response from the property owners relating to this hearing. The Public Interest and Necessity Require the Proposed Project The acquisition of the property is proposed for the Jefferson Street Improvement Project, Phase II, Highway 111 to Indio Boulevard. The project will include the widening of Jefferson Street from two lanes to a six -lane, arterial highway, with a typical 120' cross-section. A diagram showing the extent of the project is submitted herewith as Attachment 3. Staff believes that the public interest and necessity require the Jefferson Street Improvement project. A traffic analysis was conducted by Mr. Robert Ross, P.E., of RBF Consulting, a copy of which is included as Appendix 8.1 of the 1999 Initial Study/Mitigated Negative Declaration for the project, which is being transmitted to the City Council under separate cover. Pursuant to the Coachella Valley Area Transportation Study, the Valley is one of the fastest growing areas in Southern California, and is expected to increase to over 312,000 by the year 2010. The project is necessary to accommodate the projected growth and population increase and to accommodate safe traffic movements. Staff concurs with Mr. Ross' assessment. The Proposed Project Is Planned Or Located In The Manner That Will Be Most Compatible With The Greatest Public Good And The Least Private Injury 3 468 The improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway, providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The widening of Jefferson Street is designed to, relieve regional traffic congestion and improve the capacity of the street, which will require continuity in the roadway alignment and traffic handling capacity of the street. The project also improves an important linkage to Highway 111 and the 1-10 for existing and proposed residential, commercial and resort uses in La Quinta and Indio. The project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including enhanced safety during flood events. In addition, the bridge will provide additional opportunities for wildlife movement and habitat access. The project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from the roadway. On January 22, 2003, the City received a petition signed by many of the affected property owners, including one of the owners of the property which is the subject of this public hearing. The petition was in support of the chosen alignment. The persons signing the petition indicated that they preferred to have the symmetrical widening of the roadway, and that they "prefer[ed] to have their homes and lots purchased by the City under Eminent Domain." A copy of the petition is provided as Attachment 4. These facts support the finding that the project is designed in a manner compatible with the greatest public good and the least private injury. The Property Described In The Resolution Is Necessary For The Proposed Project As is shown on Attachment 5, the proposed widening of Jefferson Street would require that the right-of-way extend right up to the single-family home on the subject property. It would not be practical or safe to widen Jefferson Street without acquiring the subject property and demolishing the home. Acquiring the property is therefore necessary for the project to proceed. Other Requirements The project has been reviewed and approved under the California Environmental Quality Act ("CEQA" ). Originally, the project was reviewed in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66. On August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information 4 469 about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements. On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code. In considering the Resolution of Necessity, the City Council should consider the environmental information contained in the Addendum, along with information in the 1999 IS/MND. Both documents have been distributed to the City Council under separate cover. In addition, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in •accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003- 059 reflecting such findings. A copy of that Resolution is provided as Attachment 6. Lastly, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development as required by law. Therefore, all of the legal prerequisites to the adoption of a Resolution of Necessity have been satisfied. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-055 Jefferson Street, La Quinta, APN 649-071-009, for the purpose of improving Jefferson Street; or 2. Conduct a public hearing and do not adopt of a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 5 470 46-055 Jefferson Street, La Quinta, APN 649-071-009, for the purpose of improving Jefferson Street; or 3. Provide staff with alternative direction. Respectfully submitted, RI othy R onas n, P.E. Public Works Director/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Offer letter 2. Notice of Resolution of Necessity Hearing dated December 29, 2003 3. Project Diagram 4. Petition of Jefferson Street homeowners dated January 22, 2003 5. Property Area Map 6. Planning Commission Resolution No. 2003-059 0 471 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-055 JEFFERSON STREET, LA QUINTA, CALIFORNIA (APN 649-071-009) FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, PROJECT 2000-19 WHEREAS, the City of La Quinta has been investigating potential acquisition of property located at 46-055 Jefferson Street, in the City of La Quinta, bearing Riverside County Assessor Parcel No. 649-071-009, and more specifically described in the legal description attached hereto as Exhibit "A," which is incorporated herein by reference ("Property"); and WHEREAS, the City has been investigating potential acquisition of this Property for the widening of Jefferson Street, specifically the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 ("Project"); and WHEREAS, on February 3, 2004, after no less than 15 days written notice to the record owners of the Property, as shown on the title information obtained by the City, and the last equalized assessment roll, the City Council of the City of La Quinta held a public hearing for the purpose of considering, and allowing the record owners of the Property a reasonable opportunity to appear and be heard on, all of the following matters: A. Whether the public interest and necessity require the Project; B. Whether the Project is planned or located in a manner that is most compatible with the greatest public good and the least private injury; C. Whether the Property proposed to be acquired is necessary for the Project; D. Whether the offer required by Government Code § 7267.2 has been made; and E. Whether the City has properly exercised all of its statutory responsibilities and duties antecedent to the legal exercise of eminent domain against the Property; and 119/015610-0008 7 472 471154.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 2 WHEREAS, the City Council has received various factual information bearing upon each of the matters referenced above, including but not limited to, the representations made within, and evidence attached to, the staff report prepared by staff for consideration in connection with the hearing; and WHEREAS, the City Council, as a result of such hearing, has determined that the public health, safety, and welfare require that the City acquire fee interest in the Property for the purposes of the widening of Jefferson Street; and WHEREAS, the Project was originally reviewed and approved under the California Environmental Quality Act ("CEQA") in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66; and WHEREAS, on August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements; and WHEREAS, on August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code; and WHEREAS, in considering the Resolution of Necessity, the City Council has considered the environmental information contained in the Addendum, along with information in the 1999 IS/MND; and WHEREAS, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003-059 reflecting such findings. WHEREAS, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by 119/015610-0008 8 473 471154.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 3 Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development. WHEREAS, the City of La Quinta is authorized to acquire the Property for street improvement purposes under the authority of its own charter, and under the authority granted by Government Code Sections 37350.5 and 40404. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. The recitals set forth correct are true and correct and are adopted as the findings of the City Council. 2. The Project for which the acquisition of the Property is required is the Jefferson Street Improvement, Phase Il, Highway 111 to Indio Boulevard Project. The project will include the widening of Jefferson Street from two lanes generally to a six -lane, arterial highway, with a typical 120' cross-section. 3. The Property to be acquired is located within the City of La Quinta, County of Riverside, State of California, located at 46-055 Jefferson Street, in the City of La Quinta, bearing Assessor Parcel No. 649-071-009. The Property the City seeks to acquire consists of fee simple title to approximately 9,583 square feet of land, more specifically described in the legal description attached hereto as Exhibit "A". 4. The public interest and necessity require the Project, in that it is consistent with the City's General Plan, and specifically the City's Circulation Element. The City Council hereby adopts the finding set forth in Planning Commission Resolution 2003-059. Pursuant to the Coachella Valley Area Transportation Study, the Valley's population is one of the fastest growing areas in Southern California and expected to increase. This project is necessary to accommodate the projected growth and population increase and accommodate safe traffic movements. 5. The Project is located in a manner most compatible with the greatest public good and the least private injury, in that the improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The proposed Project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including during flood events, and providing additional opportunities for wildlife movement and habitat access. The proposed Project will result in the least private injury because the 119/015610-0008 9 471154.01 a01/28/04 474 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 4 right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from roadway construction and operation of habitable structures. The Project is designed in a manner compatible with the greatest public good in that the Project will involve road widening so as to improve an important link between Highway 1 1 1 and 1-10. 6. The Property to be acquired is necessary for the Project, in that the Project is designed to relieve regional traffic congestion and improve the capacity of the street which will require continuity in the roadway alignment and traffic handling capacity of the streets. 7. Portions of the Property sought to be acquired include area outside of the proposed alignment of the Project's proposed roadway and public right-of-way improvements. Pursuant to Code of Civil Procedure sections 1240.410, the City Council finds that such property will be left in such size, shape, or condition to be of little market value, and this constitutes a remnant whose acquisition is authorized under the above -referenced statute. This remnant finding is supported by a petition submitted to the City through the course of project planning, requesting selection of the project design alternative which resulted in full acquisitions as currently planned for the Project. 8. The offer required by Government Code Section 7267.2 has been made to the owner of record, by way of a letter dated July 29, 2003. City staff has attempted to negotiate with the record owners and their representatives subsequent to the issuance of this offer, but the negotiations have not proved successful in securing the necessary property interests. 9. Notice of the resolution of necessity hearing was provided to the owners of record by way of mailed, written notice sent on December 29, 2003. 10. To the extent any of the Property to be taken herein is devoted to a public use, the City finds that the proposed use for the Property is compatible with, or more necessary to, such public use, and that the City is authorized to acquire the Property pursuant to Code of Civil Procedure Section 1240.510 and 1240.610. 11. The City Council hereby declares its intent to acquire fee simple ownership of the Property, more specifically described in Exhibit "A" hereto, in the City's name in accordance with the provisions of the laws of the State of California. 12. The Project has been reviewed and approved under CEQA through the 1999 IS/MND and the Addendum thereto. The City finds that as reflected in the 119/015610-0008 1 0 ry 471154.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 5 Addendum, that there have been no subsequent changes with respect to the circumstances under which the Project is to be undertaken, no new information of substantial importance regarding significant effects or mitigation measures or alternatives which has become available, and no subsequent changes have been proposed in the Project which would require further environmental review. 13. The law firm of Rutan & Tucker, LLP, City Attorney for the City of La Quinta ("City Attorney"), is hereby authorized and directed to prepare and prosecute in the name of the City such proceedings in a court having proper jurisdiction thereof, as may be necessary for the acquisition of the Property described herein, including without limitation, seeking prejudgment possession of such Property, and to prepare and file such pleadings, documents, and otherwise prosecute such actions as may be necessary in the opinion of the City Attorney to acquire the Property for the City.. Such attorneys are specifically authorized to take whatever steps and/or procedures as are available to them under the Eminent Domain Law of the State of California, relating to acquisition of the Property. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3rd day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD 0. ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: 119/015610-0008 476 471154.01 a01/28/04 11 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 6 M. KATHERINE JENSON, City Attorney City of La Quinta, California 119/015610-0008 1 2 471154.01 a0M8/04 477 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 7 EXHIBIT "A" The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: That Portion Of Lots 18 And 19, Tract 2190 As Shown By Map On File In Book 41 Pages 55 Through 57 Of Maps, Riverside County Records, Described As Follows: Commencing At The Northwest Corner Of Lot 18; Thence South 00 04' 39" East 18.71 Feet To The True Point Of Beginning; Thence South 01 04' 39" East, 95.00 Feet; Thence North 891 55' 21 " East, 100.0 Feet To The East Line Of Lot 19; Thence North 01 04' 39" West, 95.00 Feet; Thence South 890 55' 21 " West, 100.0 Feet To The True Point Of Beginning. APN 649-071-009 119/015610-OOo8 1 3 471154.01 a01/28/04 478 • ATTACHMENT1 P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 July 29, 2003 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. and Mrs. Ellis Wah 46055 Jefferson Street La Quinta, California 92253 (760) 777-7000 FAX (760) 777-7101 Re: Offer to Acquire Property Located at 46055 Jefferson Street, Riverside County Assessor Parcel No APN 649-071-009 Dear Mr. and Mrs.Wah: The City of La Quinta (the "City") is proposing the construction of a widening and improvement of Jefferson Street, within the City. The City understands you are the vested owners of the above -referenced property. The City seeks to acquire the fee simple interest in the property, more particularly described as 46055 Jefferson Street, Riverside County Assessor Parcel No. APN 649-071-009 as shown on map attached hereto as Attachment "A", which is made part of this offer by reference (the "Property"). This letter contains an offer by the City to acquire the Property, and the terms and conditions on which it proposes to do so. No final determination has been made at this point by the City as to the ownership of the Property. The City is in the process of securing information from a title company which will assist in determining exactly who the current owners are, and what other persons or entities may have lease, fmancing, or other interests in the property. Any acceptance of this offer is contingent upon your presentation to the City of conclusive evidence that all parties with interests in the Property (including, but not limited to, lessees, licensees, lienholders, etc.) have accepted this offer, and agreed on how the proceeds for the acquisition of the Property shall be distributed. The City had the Property appraised to determine its fair market value. The appraisal was conducted by Mr. Michael Scarcella, MAI, of Capital Realty Analysts, in accordance with commonly accepted appraisal standards, and included consideration of the highest and best use of the land. Mr. Scarcella previously corresponded with you, offering to meet with you on his inspection of the Property, and inviting you to provide information regarding the Property. Based on the appraisal, the City offers to purchase the Property (free and clear of any encumbrances to title such as liens, leases, licenses, or other interests which, in the City's 41/41� 119/015610-0008 419343.01 a07/29/03 14 Mr. and Mrs. Ellis Wah July 29, 2003 Page 2 discretion, are unacceptable) for TWO HUNDRED FORTY-THREE THOUSAND DOLLARS ($243,000.00) (the "Purchase Price"). The basis for this offer is explained more thoroughly in Attachment B of this letter. Attachment "B" is a copy of the appraisal report prepared by Mr. Scarcella, containing the data and pertinent discussion relative to how he determined the fair market value of the Property. It is made a part of this offer by reference. This offer is for conveyance to the City of a fee interest in the Property, excluding any oil, gas, or mineral rights below the depth of 500 feet, and subject to terms and conditions set out below. Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes, except: 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue of Taxation Code, if unpaid at the time escrow closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property, as determined by the City; 3. Easements of rights -of -way over the land for public or quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report or litigation guarantee, which are accepted by the City in writing through escrow. It shall be your responsibility to convey clear title, and to pay any fees or charges by lenders or other parties in obtaining reconveyances or other items necessary to convey clear title. As a condition of this offer, the City reserves all rights and remedies it may have against you, and all prior owners, to seek damages or other remedies in connection with any remediation or other obligation the City incurs as a result of any contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. Sub -Section 9601 et seq.), the Hazardous Waste Control Law, California Health & Safety Code (Section 25100, et seq.) the Porter Cologne Act (California Water Code Section 13000 et seq.) California Health & Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. In addition, any final transfer of the property, and payment of the purchase price, will be conditioned on the City's filing of a Notice of Determination with the County Clerk approving an Addendum to the Initial Study/Mitigation Negative Declaration for the Jefferson Street Improvements, at least thirty-five (35) days prior to close, and no judicial or administrative challenges having been presented. or filed against the findings made therein as of the date of closing. The City will pay all escrow and recording fees incurred in the purchase of the Property, and if title insurance is obtained, the premium charge for such title insurance. 119/015610-0008 15 480 419343.01 a07/29/03 • • Mr. and Mrs. Ellis Wah July 29, 2003 Page 3 Please be advised that the amount paid to you pursuant to this offer, if it is accepted, may be eligible for favorable tax treatment under Internal Revenue Code Section 1033, relating to acquisitions under "threat of condemnation," providing you purchase qualified replacement property within the time periods set forth under law. The IRS has literature explaining the details of this favorable tax treatment, which you may wish to consult. In addition, Section 2(a) of Article XMA of the California Constitution and Section 68 of the California Revenue and Taxation Code generally provide that property tax relief shall be granted to any real property owner who acquires comparable replacement property after having been displaced by governmental acquisition or eminent domain proceedings. The State Board of Equalization has prepared guidelines on those matters, which you also may wish to consult. Please contact our relocation consultants, Bob Stoddard or Kathy Woolley, at (760) 772-4255, if you would like any assistance in obtaining materials from the IRS or the State Board of Equalization on these matters. Please note that effective August 1, 2003, the new telephone number for these consultants will be (760) 776-1238. In addition to -the compensation for the fair market value of the property, you may also be entitled to relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title 25), or local relocation guidelines. Relocation assistance is not apart of this offer. If you would like to inquire further regarding your eligibility for relocation assistance, please contact Bob Stoddard or Kathy Woolley, at the number listed above. Please be advised that California Code of Civil Procedure Section 1263.510 allows a party whose property is subject to public acquisition to claim compensation for loss of business goodwill. The Property does not appear to be the site of any presently operating business. As such, this offer does not reflect any amount of compensation attributable to any loss of business goodwill. If you believe loss of business goodwill should be considered by the City in connection with the proposed acquisition of the Property, attached to this letter is a "Notification of Right to Claim Loss of Business Goodwill," a "Claim for Loss of Business Goodwill," and a "Loss of Business Goodwill" questionnaire. These materials explain in further detail the provisions of Code of Civil Procedure Section 1263.510, and explain what the owner of a business must prove in order to be compensated for business goodwill losses. If you wish to make a claim for loss of goodwill, the City requests that you review and complete the forms attached. Please let us know as soon as possible if the City's offer is acceptable. This offer shall expire if it is not accepted on or before one hundred and twenty (120) days from the date it has been mailed to you. If this offer is acceptable to you, please so indicate to the undersigned, in writing. Upon receipt of your written acceptance, a Purchase and Sale Agreement incorporating the terms of this offer, and containing further escrow instructions regarding review and elimination of exceptions to title, will be forwarded to you for signature. Upon receipt of a signed Purchase and Sale Agreement, the matter will be reviewed by City Council, which has 119/015610.0008 16 481 419343.01 a07/29/03 Mr. and Mrs. Ellis Wah July 29, 2003 Page 4 final approval authority. If the deal is approved by the City Council, escrow will be opened immediately. The City generally uses First American Title Company to handle escrows, and proposes this company handle any escrow here. The City is, of course, willing to consider other escrow companies, if you so desire. If for any reason you are not satisfied with this offer of just compensation, and have relevant information regarding the value of the Property that you would like the City to consider, it will be happy to do so. If you have such information, please contact me immediately and I will make arrangements to have the information reviewed and considered. If you have any questions regarding this offer, or wish to request any additional information, you may contact Kathy Woolley or Bob Stoddard at the above numbers. Please note that the City has made no decision to exercise its power of eminent domain to acquire the Property, and can only do so after it holds a hearing at which the affected property owner(s) have had an opportunity to appear and be heard. The City much prefers to accomplish its property acquisitions by way of negotiated transactions, and toward the end of doing so with respect to this Property, would be more than willing to meet with you to discuss this offer, or any related matter. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the Attachments, and all matters stated herein are made under the provisions of Evidence Code §§ 1152 and 1154, and shall not be admissible in evidence in any proceeding which may be instituted relating to the acquisition of the Property, or in any other action. We hope this offer meets with your approval. As stated, our relocation and acquisition consultants, Bob Stoddard or Kathy Woolley, will be happy to meet with. you to discuss the Property, the 'offer, or any related matter, and will attempt to contact you soon. If you need additional information, please call me at the number referenced above. Thank you. Very truly yours, CIT OF A,Q A erne Jenson: ity Attorney City of La Quinta 119/015610-0008 17 419343.01 a07/29/03 484 Site Analysis Subject Plat Map APN 649-07, Riverside County, CA — , N mom ® p • C� — o O O O O © 1 >• AJr1�t r N � M eel N ®® 0 \ e F ® N ® � •N�eM. N 1 d 4 nr r+« O i WI R`sk1 r �.rw. N , •• \ -`r N N O N r N � O N . I O O / c►+�/ •dR $ X 'O t Vd'O 10 - CAPITAL REALTY ANALYM REAL ESTATE APPRAISERS • ANALYSTS * ADvISORS 18 483 A Complete Appraisal Presented In A Summary Report Of The Prospective Taking Of Several Improved and Unimproved Land Parcels, Located Along The East and West Sides Of Jefferson Street; La Quinta, CA. 92253 Otherwise Known As APNs: 649-071-008 Through 021; 029; 649-090-001 Through 009; and 649-141-001; City. of La Quinta, Riverside County, CA. Date Of Appraisal June 20, 2003 Effective Date of Valuation June 10, 2003 Job Reference No. 03-1097 For The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Caile Tampico La Quinta, CA 92253 By CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 19 04 Table of Contents N..»».. 4 TABLE OF CONTENTS NNNN.N.NN.N.N.«N.N.NN..NN..NNN.«•N•.NN....N••.N•N.NN.N..N...•.N..•«M.•.N.«.NN. SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS»...N.»...».»»».»•••»-•»»•»•»»•»�» 6 SATELLITE PHOTO (TAKEN IN 2000) ........................................................................... ................... I I / HISTORY OF THE SUBJECT...................................................... ..................•........... INTRODUCTION 12 PURPOSE OF THE APPRAISAL....................................................................................................... ....... 12 FUNCTION OF THE APPRAISAL........................................................................................................... ....1213 PROPERTY RIGHTS APPRAISED .................................... ......................................................................... DEFINITIONOF MARKET VALUE........................................................................................................... .... 13 DEFINITION OF EMINENT DOMAIN............................................................................................................ DEFINITION OF CONDEMNATION...........................................................................................................13 ....... 13 DEFINITIONOF EASEMENT................................................................................................................ DEFINITIONOF DAMAGES.......................................................... ........................................................ DEFINITIONOF BENEFITS ..........................................................................................................................13 14 :BUNDLE OF RIGHTS THEORY................:........................................................................ .......................... 14 BEFOREAND AFTER RULE .....:................................................. ................................................................. SCOPEOF THE APPRAISAL........................................................................................................................14 1 S DATEOF VALUATION............................................................................... LEGAL DESCRIPTION........................................................................................................... ............... 16 ASSESSMENT& TAXATION.................................................................................................. REGIONAL ANALYSIS N»N.N«..»».»NN.».....N»N.NN»..»..N«.....NN..»..»NN..».»..«N..N..».N»..........N.....»..17 22 CITY ANALYSIS, LA QUINTA, CAN.».»»».........................N.N....»NN.....N.N..N....N...««.««..»»..»»•»•»� NEIGHBORHOOD - MARKET ANALYSIS ... NN............ N.N....... N.................. .... .... .... ....»N.».»»N».». 27 31 SITEANALYSIS«.....»...»..N.».N...N».......».N...».»»............................... :..«»....»........N.....«.NNN.N.......•.•» 41 HIGHEST AND BEST USE ANALYSIS ......... N.... ».N».... N..................... N».»......N«.»N»«.»».»...N«»«.• . 44 APPRAISAL PROCESS ..... »...N....... »...... »............. «.............. N........... «...... N.N .... «.........N......«................ 46 SALES COMPARISON APPROACH »»...».... ....... N......................... ».»........... ...... N»».«»»...».NN.....N. LILLEY: 649-071-008 & 029.N.N.«N..........N.............N..............N..................NN......»....»....».......50 .... 54 WAH649-071-009.......N.N..N.N.N.»N.»N.»N».N.«...».....N..N.....NN..N....................NN........».N......»NN».N»...» 60 PETERSON: 649-071-011 N....N.....».NN.»..N............N........N........................... .............. ...».N»N..:N.«......... N...66 WAGGONER: 649-071-012...... ...... N.......................N...............N.........................................N.... N.......N» 73 FEACK: 649-071-013»..«....».....»............... ...........N......... N.......................... N........................ ..... 79 ELROD: 649-090-007N........... N... N.«............ »........................................................................................... 83 NIKOLICH: 649-071-015N........ N... .»......... N.........N................................... N ............ N......N..«.NNN•N...NN.. 89 ROLLAND: 649-071-016 ....................... »...... ......................................................................................... KRAKOFF: 649-071-017.......... ......................................................................................... :.............. N.NN.. 95 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 20 485 REYNOLDS: 649-071-018...»................»..»..»...».».»».»......»»...........»».»».»».»..».»... 101 ASTORGA:649-071-019».»......».....».»..».»............»............»»»...».....».»».».»...».». 107 LILLEY: 649-071-020.......•».....»...------- ».......»».....»...•••..»..»....».....»..».....».»».».»»»»....».»..»....».» LILLEY: 649-071-021.....»»..»»»».......»»............»».»....»»...».».....».....» ....»»......»....»...»..»......» 117 MILLS: 649-090-001»..»...... »..... »......... »..»»............. » .»......... ».» ......»....»» »...»»..»....,..» 121 CULP: 649-090-002...»...»..»»........»».»»»............ ».».».»».........-.»»».»..»»»....»..........».....» ................127 RACKIE:649-090-003...»»....».»»»»..»...».......»»..» »..........».....»..».»».»...............»».»»............».133 WALDO:649-090-004.»... »....... ».................... »»...... »..»........... ........»..»..»»».....».».»»»»,......,»»»-.139 HALL: 649-090-005...»...».».».....»........».»»»..».....»...»...»...».».».»....»»»».»...».»».....».»..».».»...»...» 145 RODRIGUEZ: ------ 149 Z.ILINSKY: 649-090-007...».»»...»»».»...».»....»»..»............»»..».»....».»».....»»»..»......,»..».»......»...»» 15S STEDING: 649-090-008 .» »..».....»»...»»•.•»•»••»•••••••••..•»......••"•'••'.'••"'•••"'•..'•••'.»"•'..'•••"•••.•••••'••'•» 159 ALEXANDER: 649-090-009».....»..».»...».».».....»».......».»......»...».......».».....»»...........»......»..».....»» 165 HENDERSON: 649-141-001».... »...... ....»...»»...»......»......... ........ »»........»...».».»..............».»............171 CERTIFICATION».».... ..............»..»..»»,... ...............»»...».............».»...»»»».....»».,,,•»,.•.»,.,,.».........177 f ASSUMPTIONS AND LIMITING CONDITIONS .»............... »...»...»»»»»»••••»••»•••••»••»•»�»•�•-••-- 179 UAPITAL KEALTY FLNALYbib REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 21 486 Summary of Important Facts and Conclusions Client The City of La Quinta Attn: Mr. Tim Jonasson 78495 Calle Tampico La Quinta, CA 92253 Intended Users: The Client Property Type: Single family homes, vacant single family home lots, and a parking lot / putting green area Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Thomas Brothers Guide Reference: Census Tract Number: Tract 452.05 Type Of Report: Complete Report Format: Summary (6) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 22 487 Summary of Important Facts and Conclusions Purpose of the The purpose of this appraisal is to estimate the just Appraisal: compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Eminent Domain Appraisal: Date of Valuation: June 10, 2003 Date of Appraisal: June 20, 2003 Owner of Record: Preliminary Title Reports. were not submitted or examined. According to public records, title to the subject parcels is vested as follows: N APN Owner Site Address_ 1 649-0714)08 Jeff L. & Patricia C. Ulley WA 2 649-071-009 Ellis & Helen Wah 46055 Jefferson Street 3 649.071-010 Indian Springs Land Cc WA 4 649-071-011 David F. & Patricia L. Peterson. 46115 Jefferson Street 5 649-071-012 BID & Suzie Waggoner 46145 Jefferson Street 6 649-071-013 Eugene T. & Carol A. Feack 46175 Jefferson Street 7 649-071-014 David A. &Card A. Elrod NIA 8 649-071-015 Milan & Mile Nikolich 46235 Jefferson Street 9 649-071-016 Patsy Rolland 46305 Jefferson Street 10 649-071-017 Sheila A. Krakoff 46335 Jefferson Street 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 12 649-071-019 Ronald Astorga 46425 Jefferson Street 13 649-071-020 Jeff L. & Patricia C. Utley WA 14 649-071-021 Jeff L. & Patricia C. Lilley WA 15 649 071-029 Jeff L. & Patricia C. Lilley N/A 16 6494W-001 Harvey A. & Audrey R. Mills 46170 Jefferson Street 17 649-090-002 Elaine L. & Robert L. Culp 46200 Jefferson Street 18 649-OW-003 Emma Rackie 46M Jefferson Street 19 649-09D-004 Edward E. & Marie A. Waldo 46280 Jefferson Street 20 649-090-005 William Hall WA 21 649-090-006 Mirta Rodriguez 46390 Jefferson Street 22 649-090-007 Charles J: & Alice S. Zilinsky /A 23 649.09D.008 Sue F. Steding 46450 Jew Street 24 649-090-009 John D. & Jacy P. Alexander 46480 Jefferson Street 25 649.141-001 Leonard C. & Margaret R. Henderson OW20 vista Grande (7) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 23 488 Summary of Important Facts and Conclusions Site: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels are as follows: 1 O70vr 11rw vo.. �. �.. �__� __ --. _, 2 849-071-M Ells a Helen Wah 4sos5 JeN/A Sweet 9,583 3 649-071-010 Indian Springs Land. Co 4 649-071-011 David F. a Patricia L. Peterson 46115 Jefferson Street 11,326 s 649-071-012 BPI a Suzie Waggoner 6 649.071-013 Eugene T. a Carol A Few* 46145 Jefferson Sheet 46175 Jefferson Sheet 7.841 7.841 .8 1 7 649-071-014 David A. a Carol A. Eked 649-071-015. Milan a Mile NNcoNch NIA 4823s Jefferson Sheet 7.841 9 649-071-016 Patsy Roland Shaftra 10 649471-017 St A. Kkoff 46305 Jefferson Sheet 46335 Jefferson Street 7,841 7,841 11 649-071-018 Timothy K Reynolds Ronald Astorya ShSweetfferson Sheet 395 Jefferson 46 841 17.841 0,45.4 12 649-071-019 13 649-071-020 Jeff L. a Parkin C. Lfty N/A 86 503 8 14 649-071-021 Jeff L. a Palriein C. May WA WA ..712 15 649-071-029 Jeff L. a Paaka C. Lllsy 16 649-090-001 Harvey A. a Audrey R. We 17. 841 17 649-090-002 Elaine L. a Robert L. Culp Emma Rack4 Jefferaor Street 46462Jeff rsoe Street 77A4100 7.84110 18 649.090-M 19 649-090-004 Edward E. a Mara A. Waldo 46280 Jefferson Street 7.841 7A41 20 649-090-M Wham Hal 21 649-090-006 Mfrs Rodriguez WA 46390 Jefferson Sheet 7A41 22 649-090-007 Charles J. a Ala S. Zilinsky 23 8494)90-008 Sue F. SMdi ng NIA 46450 Jefferson Street 7,841 7.841 24 649-090.009 John D. a Joey P. Alexander 46480 Jefferson Street 28 649.141-001 Leonard C. a Margaret R. Henderson 80020 Vats Grande 9,148 10.454 Improvement$: r 17 of the subject parcels are improved with single family homes. The remaining 8 parcels are vacant. According to the City of La Quinta Zoning Map, all of Zoning: the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning is likely as of the date of value. Highest And Best Use, Hold for investment "As Vacant" Highest And Best Use, Remain as improved "As Improved": Property Rights Fee Simple Estate Appraised: (8) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 24 493 Summary of Important Facts and Conclusions Final Estimate 0f Just a A. wage W Compensation: «607;-06e a�aHMrrW1008 llmum WA AS055.MwAaOnseed Nsm i 64W14110 64OW1411 Indio svrirw Lard CD Dedd F. a PaMrJa L PaW IO 16115 Jel ra6n teed WN 11 its 4 i 646d714112 a a sum WA6arr Eu w T. i Card A. Fewa 46145 Je6are0n farad 46175 Jaarer! feeel sm fl'R 7JM1 7J141 e e4"TiAM3 7 646071-014 Dow A a Carol A. Bmd WA so" N4M slit . 7JN1 7JM1 e "11417141: e 60471.m Moan a Ma WIND" Pr4Y Ra4rd as= jeallmon 46T06 JOROMM 9 M am 7JM1 7041 /e 6WW14117 SMu A KmW - 46735 Jdlrfen lets abed am sm 7.M1 It 64e.07/416 Two" K. Reyroft 46M Je64reon 46M B" - M /adM 12646-071O11e li 646WVM -RarldNWW JeffLa4C.LaY -WA WA "am Nrrt LM. .7 1480471421 JogL a Fee rCfa C. LsaY WA " M 1,142 2 1f M6-071J= 6494804 01 Jew L a PdedaC. LOGY Op"A. a Audrey FL Wk 46170JORGAM weal am 7JMi ie 17 0460611-M EWna L a Robert L CAMP 46M JefrM fqd 46M)JdWaoes..d WR sm 7JM1 7.M1. 1e 640400-M Is M6010004 Emma RrirN Eduard E.i Marts A WelOo 16260 Jas�A a4ieM 7.M, , 7JM1 30 040490- 5 21 6400-M wMwn WM Mao Rn[odng WA 461e0 Jeareon abed on !WM fFR 7JN1 �0 22 M6/1000W ChwW J. a Ala S. nroky WA 464M Jafraon aeeM N" sm ' 7J141 7JM1 27 6440e060e N 6014O-M1-M Sue F. 8radrq Jora+ P. mardwr . MR 10A64 20 64?14/401 & Mwg ► raon Leorrrd C. i MrprM 60020 vim Qrreft Personal Property: $0 (9) CAPITAL REALTY ANALYSTS REAL ESTATE ArPRAISw 4 AMALYSTS a ADVISORS 25 490 ., � kc .+AC-r_R; .�� tr It .' � / �I,� • �a 1 t 1. 1 1V- .. '� tq., � e 1't ^/�CJ l n/>��f 1 1�6p�� r • G .4•�. ,�' r F� � i4 1 �� ` � '` �� '� F" ,;= � ¢„ , y �,•,�"' • , It �, {i►� , . _ �/ r... ' ,1, 1 J`i �r _byy, 1 � MR ,�`� `' <.. . s � � !� l�%I I ��x ue r1�-- T, �"' i , ((��'(�r�P•t``,, �;a{d 3 i 1 `.71 ORml Introduction / History of the Subject The subject property includes 25 separate legal parcels, located along the east and west sides of Jefferson Street, south of Westward Ho Drive, in La Quinta, CA. All of the parcels except 1 have frontage on the Indian Springs Golf Course. The history of the Indian Springs Country Club is described in the following sections: The property was originally developed with an 18-hole golf course and some residential homes in the early 1960's. Several of the subject , homes were developed in the 1960's. In January 1984, One Hundred and Thirteen Corporation acquired the project for $1,595,000. One ,Hundred and Thirteen Corporation subsequently acquired additional parcels, which made up the bulk of what is now the existing Indian Springs site. The golf course was reportedly not managed or maintained up to market standards under the One Hundred and. Thirteen Corporation ownership. The facility had a poor reputation and reportedly performed well below market standards. One Hundred and Thirteen Corporation. subsequently defaulted on a trust deed, and the property reverted to Diamond Benefits Life Insurance Company (in Receivership) on November 1, 1992.. . A lease agreement for the golf course and related facilities and equipment was. executed on September 29, 1994. The lessee made some improvements to the golf course, and the golf facilities began operating at near market standards for the courses' market niche, which was at the lower end of the spectrum. In.eady 1998, the Diamond Benefits Indian Springs holding was placed in escrow by Indian Springs Land Co., LLC. Indian Springs Land Co., -LLC is an affiliate of Mr. Roger Snellenberger, an active subdivision developer, with several projects fully developed and absorbed in the Coachella Valley market. The escrow price was $6,353,000 (it was $8M prior to the school site sale described below). During the escrow period in 1998, Diamond Benefits sold approximately 36.5 acres of land at the SEC of Miles Avenue and Dune Palms Road to the local school district. The sale price was $1,647,000, or $45,123 per acre. In order to make up the lost land area, the developer acquired APN's 604-062-008 and 009. Both parcels sold on 5/14/99 for $200,500 each, or approximately $42k per acre. The Diamond Benefits acquisition was completed on 1/20/00. The sale price was $6,353,000, inclusive of thegolf course. Additionally, the developer (and/or related entities) acquired a contiguous 40-acre parcel located on the SEC. of Miles Avenue and Jefferson Street for $1,520,000, or $38,000 per. acre. The closing date was 6/6/00. The assemblage was completed with the acquisition of a 12.5-acre parcel on 6/9/00 for $433,000, or $34,640 per acre. (11) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 27 492 Introduction / History of the Subject Property (cont'd) Currently, the developer has developed the bulk of the remaining lots located on the east side of Jefferson Street. The absorption rate for the project has been among the strongest in the region, as the units have attained excellent market acceptance. Alternatively, the subject parcels have not traded actively over the past several years. The reason is that Jefferson Street is a major arterial, that, bottlenecks at the area of the subject, where the street becomes 1-lane in each direction. In fact, during my physical inspection, several of the homeowners indicated• that they felt that the combination of street noise and the high traffic count have been detrimental influences. The fact that 6 of 24 residential lots in this area remain undeveloped after over 4 decades subsequent .to their subdivision clearly supports the lack of demand and viability for single family homes on Jefferson Street in this particular area. However, the lots back to the Indian Springs Golf Course, which does provide good view elements to the subject homes. The southern end of the subject area abuts the Whitewater River, a large regional drainage escarpment. This drainage periodically floods, closing Jefferson Street to through traffic. In light of the location of the Whitewater River and the configuration of Jefferson Street, the City of La Quinta is currently exploring the possibility of acquiring the subject parcels in order to widen Jefferson Street and construct and bridge over the Wash. The potential taking generated the requirement for this analysis. Purpose of the Appraisal The purpose of this appraisal is to estimate the just compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for deposit of probable just compensation. Function of the Appraisal Eminent Domain Property Rights Appraised The property rights appraised are those of the Fee Simple Estate. The definition of Fee Simple Estate for this appraisal is as follows; Definition of Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."' ' (The Dictionary of Real Estate Appraisal 3rd Edition Appraisal Institute Chicago Illinois, Page 140.) (12) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 28 493 Definition of Market Value The definition of Market Value for this Appraisal is as follows: A. The market value of the property taken is the highest price on the date of valuation that would be agreed to by seller, being willing to sell but being under no particular necessity for so doing, or obligated to sell, and a buyer, being ready, willing and able to buy, but under no particular necessity for so doing, each dealing with the other with the full knowledge of all the uses and purposes for which the property is reasonably adaptable in a buyable period. B. The fair market value of the property taken for which there is no relevant market is its value on the date of valuation as determined by any valuation that is just and equitable. (Source: Calffomia Code of Civil Procedure, Title 7, Chapter 9, Article 4, Paragraph 1263.320) Definition of Eminent Domain "The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as "the taking clause" guarantees payment of just compensation upon appropriation of private property." Definition of Condemnation "The act or process of enforcing the right of eminent domain."' Definition of Easement " An interest in real property that conveys use, but not ownership, of a portion of an owner's property. Access or right-of-way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space and preservation easements."4 Definition of Damages California Code of Civil Procedure Section 1263.420. Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following: (a) The severance of the remainder from the part taken. (b) The construction and use of the project for which the property is taken in the manner proposed by the plaintiff whether or t the damage is caused by a portion of the project located on the part token. Tho nlrn�nary Of Real Estate Aoora3�L Chime. 11., Page 116 y e r>_ ^^�ry of Real Estate ADDraisal, Chicago.11., Page 71 4 The Dictionan of Real Estate Aooraisal. Chicago, 11.,_P13) 13 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 29 Definition of Benefits to the remainder is California Code of Civil Procedure Section 1263.430.se of the Benefitproject for whit the the benefit, if any, caused by the construction andhe plaintiff whether or not the property Is taken in the manner proposed by benefit is caused by a portion of the project located on the part taken. Bundle of Rights Theory ownership to a bundle of sticks with each The concept that compares property P o wner, e.g. t he . stick representing a d istinct a nd separate right of t he p roperty right to use real estate, to sell it, to lease it, to give it away, or to choose to exercise all or none of the rights. Before and After Rule often referred to as the Federal Rule; In eminent domain between thervaC procedure* in which just compensation is measured as the difference the entire property before the taking and the value of the remainder after the taking. I have applied the State Rule to appraise the subject taking. There are nine procedural steps to be followed, as shown below: 1. Value Before Taking 2. Fair Market Value of Part Taken as Part of the Whole 3. Remainder Value Before the Take 4. RemalnderValue After the Take 5. Damages to the Remainder 6. Benefits to the Remainder 7. Net Damage to the Remainder Note that all of the proposed takings are for 100%.fee estatenC Consqua gh. there will be no remainder parcels, easements, damages, o tee the State Rule is applied, the part taken is the whole, and consequently, just compensation is for a 100% fee estate in each parcel. Scope of the Appraisal This Appraisal Report is intended to be an "appraisal assignment" as defined in the Standards of Professional Appraisal Practice of the Appraisal Institute. It is my intent that the appraisal service be performed in such a manner that the results of the analysis, opinion or conclusion be that of a disinterested third party. e d Additionally, it is my intent that all appropriate data deem pertinent solution of the appraisal problem be collected, confirmed and reported. in conformity with the Standards of ProfessionalAppraisal scope'ce and of the tan ysis iCode s Professional Ethics of the Appraisal Institute. intended to be appropriate in relation to the significance of the appraisal problem. (14 ) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS -, ADVISORS 30 495 Scope of the Appraisal (cont'd) Lacking improvements with an associated cost and /or income earning potential, the Cost Approach and the Income Approach are excluded for the valuation of the vacant parcels. The . Sales Comparison Approach is applied exclusively' for the vacant parcels. In terms of the improved parcels, both a Cost Approach and a Sales Comparison Approach are applied. The Income Approach is excluded as there is a lack of rental data in the area. Although was not of the provided. subjectparcels Appraiser ser currently leased, a copy of the lease agreement interviewed market participants including buyers, sellers, developers, real estate brokers and lenders in the subject market and competing areas during the collection and confirmation of data for this assignment. Date of Valuation June 10, 2003 Date of Appraisal June 20, 2003 Legal Description The legal description for the subject property is as follows: 1 649-071-008 .20 Acres M/L in Lot 17 MB 041/055 TR 2190 2 649-071-009 Portion of Lot 19 and Lot 18 MB 041/055 TR 2190 3 649-071-010 Portion of Lot 19 MB 041/055 TR 2190 4 649-071-011 Portion of Lot 19 and Lot 20 MB 041/055 TR 2190 5 649-071-012 Lot 21 MB 041/055 TR 2190 6 649-071-013 Lot 22 MB 041/055 TR 2190 7 649-071-014 Lot 23 MB 041/055 TR 2190 8 649-071-015 Lot 24 MB 041/055 TR 2190 9 649-071-016 Lot 25 MB 041/055 TR 2190 10 649-071-017 Lot 26 MB 041/055 TR 2190 11 649-071-018 Lot 27 MB 041/055 TR 2190 12 649-071-019 .24 Acres M/L in POR Lot 29 and Lot 28 MB 041/055 TR 2190 13 649=071-020 .13 Acres M/L in Lot 29 MB 041/055 TR 2190 14 649-071-021 Lot 30 MB 041/055 TR 2190 15 649-071-029 .04 Acres M/L in POR Lot 18 MB 041/055 TR 2190 16 649-090-001 Lot 39 MB 041/055 TR 2190 17 649-090-002 Lot 38 MB 041/055 TR 2190 18 649-090-003 Lot 35 MB 041/055 TR 2190 19 649.-090-004 Lot 36 MB 041/055 TR 21.90 20 649-09.0-005 William Hall 21 649-090-006 Lot 34 MB 041/055 TR 2190 22 649-090-007 Lot 33 MB 041/055 TR 2190 23 649-090-008 Lot 32 MB 041/055 TR 2190 24 649-090-009 Lot 31 MB 041/055 TR 2190 25 649-141-001 Lot 1 MB 0571007 TR 3505 (15) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 31 496 Assessment & Taxation Consistent with code sections pertaining to eminent domain, assessed value .has not been used as a basis for valuation. Easements and Encumbrances A Preliminary Title Report for the subject parcels was not submitted or examined. The subject is being appraised as though there are no atypical easements and/or., encumbrances that may have a negative impact on the prospective market value or marketability of the subject. The appraiser reserves the right to modify any data or value estimates contained in this analysis after inspecting Preliminary Title Reports for the subject parcels. (16) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAIsERs • ANALYSTS • ADVISORS 32 497 Regional Analysis Regional Map oeeerl 1101 S~ Jr/x1>,ie'Fror, lY*.Ak+..xxx Ml1f 11111PI/ 02 VYIkiCI'IMeB 1•R• VM>Ke Patin: Jnrrlaw Tree Holion:d P,Hk VVite► reps, DO.. Rd 00,:, d PIMo WasA Fried Liver .. N y w Wa6h ' /x'• F i V F. E k l 111 WoypiOvon Wesh 4 Thowand Pails SprUlplt 4 q `'*� Palms . s4k. Seri Jecinlo 6 .. + Tids'W4oh ?p ' M6lderooss o ( A, L f O R N. I A SUbJ@Ct CelNnwood iEe9M �PMsCOW Myanla - Vidlo1Centele Younbin VW Vida �Wylwld RrKFq a FredVVMkq. IArsge "o . 74 ., . Paull Deseft .wdw� III r...,aI . 16C4'a'�' Caaus Otv Son Fiarnerdkw HelUmel FMQEI 74 Oka awma !��i11 '::Thef" . Ilwrw.►ke„A,w, TM,mil Ai,h°r-'r `...'�i• naA", it Beal AM- SanOl � �1)1 Ce4uiRe LR. R? I JTI - SOM Sea Beech• Regional Demographic Snapshot Median Median Median Labor Description Population Household Inc. Housing Val. Age force Unemployment Cathedral City 1 44,650 $ 40,014 . $ 113,200 31.3 19,460 5.80% Coachella 23,950 $ 30,058 $ 68,400 23.0 9,120 14.40% Desert Hot Springs 17,000 $ 26,782 $ 74,100 30.2 6,540 6.70% Indian Wells 4,020 $ 113,851 $ 372.900 60.2 N/A 2•90% Indio 51,500 $ 33,629 $ 83,600 26.2 21,701 9.10% La Quinta 26,300 $ 51,231 $ 117.400 31.0 7,480 5.60% Palm Desert 42,350 .$ 48,309 $ 172.600 41.9 15,940 3.80% Palm Springs 43,800 $ 35,651 $ 141,200 43.9 25,820 5.00% Rancho Mirage 13,900 $ 58,341 $ 252,500 58.8 N/A 3.20% Unincorporated 64,262 $ 41,741 $ 98,000 35.0 N/A 6.50% Total 331,732 33,173 $ 41,741 $ 126,200 35.0 N/A N/A Mean CAPITAL REALTY ANALYSTS REAL Esl'ATE APPRAISERS a ANALYSTS a ADVISORS 33 498 Regional Analysis Population The following chart shows the growth pattern of the regional area since 1980; 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 :9 -s-- Population —.Power (Population) In addition to the permanent population of 331,732 on 1/1l01, there is an estimated 124,000 seasonal residents from January through May. Among the incorporated cities, the following chart depicts population rates since 1980: ecathodral city ■ cosohells O Desert Hot springs OIndian Wells ■ Indio ■ La Quints ■ Palm Desert O Palm Springs 1980 1990 zuu� �..... III Rancho Mirage The following table shows the same data expressed in terms of growth rate percentages since 1990; 199"001 0.W% 20.00% 40.W% W-00% 50.00% luu.w7i �sv.w� +..•�� ■ Rancho Mirage OPalm 8prIngs ■ Palm Desert ■ La Quints ■ Indio 0Indian Wells ODesed Hot Springs As shown, La Quinta is leading the region in terms of population. growth. Indio passed Palm Springs as the largest city in the regional area, and Palm Springs has had the least growth over the past 10 years. (18) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADvISORS 34 499 Regional Analysis Population (cont'd) The total permanent population of the Coachella Valley is projected to , be 372,000 in 2005, 422,000 in 2010 and 473,000 by 2015. Economy Historically, the regional economy developed around tourism in the western portion o f t he r egion, and a griculture i n t he a astern p ortion o f t he r egion. T he tourism, construction and agricultural industries continue to drive the economy of the region. The following table shows regional employment by sector; Employment M Manufacturing Utilities / Transportation O Government / Schools O Construction ■ Finance M Agriculture ■ Tourism O Retail ■ Services In terms of regional economic conditions, hotel room sales are an important indicator as the tourism and services segments make up the largest employment base. As shown in the table below, regional hotel room sales trending down in 2001, after encountering a strong increase through the 90's. Regional Hotel Room Sales 400 350 300 250 200 150 100 50 0 —s Room Sales (millions) Power (Room Sales (millions)) In terms of construction activity, 2002 had $1.13 billion in permit activity, which was the 2"d highest year ever in permit valuation. The following table shows a Building Permit Valuation comparison: (19) CAPITAL REALTY ANALYSTS REAI. ESTATE APPRAISERS • ANALYSTS • ADVISORS 500 35 Regional Building Permits By Property Type —* Residential —a— Multi -Family Commercial 92 93 94 95 96 97 98 99 0 1 2 Year Assessed values in the regional area had been flat from 1992-1997. Total assessed values increased from 1997-2002. The eastern part of the regional area continues to support a significant agricultural based economy. Although current crop production is up, employment is down due to improved technology in production and a migration to less labor-intensive. crops. In the manufacturing sector, growth has been limited and industrial lot supply & demand is roughly in balance. Thp State created an Enterprise Zone in 1991, which encompasses approximately 29,000 acres in the northeastern end of the region. Efforts to attract new development to this area have largely failed to date. The economic benefits expire in 2006. Conclusion The subject region is in the growth stage of its economic life cycle. The regional area is projected to continue to double in population approximately every 15 to 16 years. The eastern part of the regional area should continue to transition from ial and ancillary supporting uses. Current country agricultural uses to resident club residential absorption is trending down due to negative national and regional economic conditions. However, the primary housing sub -market at lower price points is trending up, as is the average retail unit price. The hot summer climate of this. regional area will continue to create a significant seasonal market. Long- term prospects appear similar to the historical growth patterns of other, Tucson, Las Vegas, mature seasonal markets in the southwest like Phoenix The core industry of tourism & related businesses should continue to dominate the economy of the regional area in the long term. As t 750,000, egi it al likely a transitions into permanent populations of over approximately that a sufficient labor pool will exist to attract larger manufacturing and non - service related economic entities. (20) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 36 501 Realonal Analysis Conclusion (cont'd) In the shortt(co the subject region is characterized as being in a growth mode. After poor or no growth from 1990 to 1995, the residential and retail sectors trended up sharply through 2002. Current industrial supply & demand is roughly in balance. The hospitality industry had a record year in 1999/2000. The 01/02 season was negatively impacted by the 9/11 attacks. The 02/03 season showed a small increase. While the national and regional economic down turn have impacted some real property segments, the lower end primary housing and retail segments continue to progress. These trends are expected to continue through at least the short term. (21) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADvmm 502 37 City Analysis, La Quinta, CA �.rlge PwwMr b44r �,. •• bMrw .u—.•. AMM II iN. M a pwb M,. •yw, Subject i sS\ w A f � MAY w w4"sq Location La Quinta, CA. is located in. the eastern portion of the Coachella Valley. The city is bordered to the west by the Santa Rosa Mountains providing an outstanding natural view amenity. Historically, La Quinta developed around the La Quinta Hotel, which was built in 1926. The City has easy access to Highway 111 and a direct route to Interstate 10 via Washington Street and Jefferson Street. Population population Growth, Ls Quints From 1989 to 2002, the permanent P population of La Quinta grew by � approximately 337%, or an 30, ,000 average of approximately 28% per �,� year. In addition, an estimated 15,E 12,000 seasonal residents reside in 10,000 w La Quinta for 4 to 6 months per ;,000 year. The "season" is generally o 89 so 91 92 93 94 98 97 go 99 u 1 z considered January through May. La Quinta has been one of the fastest growing cities in Riverside County. The City has a substantial inventory of residential and master -planned community land remaining for development. (22) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAmERS ♦ ANALYSTS • ADVISORS 503 38 City Analysis, La Quinta, CA Economy La Quinta has historically been known as a higher end. resort community. The local a conomy i s d riven m ainly b y t he resort / r esidential d evelopments i n t he city. The number of high quality projects such as PGA West, Tradition, Rancho La Quinta, La Quinta Resort & Club, and the La Quinta Hotel provide a significant employment base in the service and construction sectors. The following graph shows a historical prospective on the number of residential units developed in La Quinta over the past 16 years: Residential Units Developed 86 88 90 92 94 yd wo """' Des on ■90 ■91 . ■92 ©93 E 94 ■ 9s 096 ■ 97 ■ 98 ■99 ■ 2000 E 2001 ■ 2002 As shown, the city has had a tremendous number of new residential units developed, in relation to the size of the permanent population. opul ti struA number o country club projects are currently active in new it ial on. These include PGA West, Rancho La Quinta, Mountain View, The Hideaway, and the Tradition., PGA West in particular has been quite active. The property owner, KSL Recreation discontinued their in-house residential development program in mid-1998 and sold most or the entire remaining superpad production lot inventory to merchant builders. The City s redevelopment agency recently acquired 525 acres of land located west of Jefferson Street between Avenues 52 and 54. Redevelopment of this landWill udthe �mplannmunicipal f the golf course. Future hotel/resort and retail development are also property, which will create new tax revenue for the city. Other than the homebuilding industry, La Quinta has a substantial economic base in the tourism industry. The Washington Street / Highway 111 corridor is rapidly evolving with a new Auto Mall and an approximately 66-acre commercial/industrial park known as the La Quinta Corporate Centre, which is partially developed with more phases planned. A significant amount of undeveloped residential land in the city (23) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 39 504 City Analysis La Quinta, CA Economy (cont'd) seems likely to assure continued growth on a similar pattern through at least the mid-term. Based on the historical growth pattern of La Quinta, and the availability of land, La Quinta is generally projected to remain in the growth phase of its economic life cycle for approximately the next 15 years. Recent developments have occurred in La Quinta including many notable businesses and restaurants, such as Fisherman's Market, Jensen's Finest Steakhouses, Other Steak House, Larsen Golf Cars, and The Falls Pr ime commercial activity along Highway 111 is underway, including Big Five Sporting Goods, Ross Dress For Less, Staples, and a.' Super Wal-Mart. Along Washington Street, new services are expanding, which will include a Marriott Residence Inn, a professional . plaza, a medical plaza, and Omri & Boni restaurant. H istoric O Id T own L a Q uinta i s b eing revitalized. a s well with n ew restaurants, a mixture of retail stores, and professional office spaces. Also in La Quinta, the new La Quinta Park will be constructed with Spring 2003 as the anticipated completion date, located at the corner of Adams Street and Westward ' Ho. The graphs below show the economic growth of La Quirita: Hotel Room Sales in Millions $ E397 ■ 96 E99 ■2000 ■ 2001 ■2= 97 98 VV svva ---• ---- Building Permit Valuations in Millions $ ■97 ■96 ■99 ■ 2000 02001 97 98 VV svw ---- (24) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERs • ANALYSTS • ADVISORS 40 505 City Analysis, La Quinta, CA Economy (cont'd)- Taxable Sales in Millions $ 139.9 097, 339 7.5 ■ 98 099 02000 3.3 ■ 2001 338 102002 275.2 Employment The City of La Quinta is largely suburban residential in character. On a regional level, the resort character of the Coachella Valley reflects the large percentage of employment in the retail, tourism and services. industries. Construction has historically had a strong employment base. The following table shows a summary of employment by sector: Valley Summary ....,,........_---- - Services 21,000 Tourism 12,500 Agricultural 8,000 Construction 7,500 Government/Schools 7,500 Finance Related 6,500 Utilities/Transportation 5,000 Manufacturing 3,500 Total 94,500 Conclusion La Quinta has had the fastest growth ratio of any other city in the regional area. This trend is expected to continue, as there are a large number of residential acres and existing projects remaining for development. Similarly, the number of households is expected to grow at a proportional rate. Median income levels in the subject market are increasing because of a higher percentage of professional employment. The potential for an increasing employment base within the city is likely to be driven by the continued success in the construction industry, golf and retail centers on Highway 111. The table on the following page shows the current demographic profile of La Quinta: (25) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 41 506 City Analysis, La Quinta. CA City of La Quinta - 2002 Demographic Profile Population 28,715 Total Units HousingTotal 14,127 Sex Occupied housing units 71.5% 10,100 Male 14,081 Owner occupied 81.5% 8,227 Female 14,634 Renter occupied 18.5% 1,873 Vacant housing units 28.5% 4,027 Age Units for seasonal use 21.5% 3,031 Under 10 years 4,763 10 to 19 years 4,245 Housing Type 20 to 44 years 9,431 Single family 91.3% 12,902 45 to 64 years 6,430 2 to 4 units 2.4% 336 65 years and over 3,845 5 or more units 4.1 % 580 Median Age 36.4 Mobile home/trailer/other 2.2% 310 TotalHousing Values Family households 7,841 Specified owner occupied units 7,617 Non -family households 2,259 Less than $100,000 15.2% 1,159 Persons in household 28,675 $100,000 to $149,999 25.2% 1,920 Person in group quarters 40 $150,000 to $199,999 20.3% 1,549 Persons per household 2.84 $200,000 to $299,999 18.0% 1,371 $300,000 to $499,999 11.9% 905 Contract Rent $500,000 to $999,999 6.9% 529 Specified renter occupied units $1,000,000 or more 2.4% 185 paying monthly cash rent 1,873 Less than $300 68 $300 to $499 132 $500 to $749 490 $750 to $999 647 Per capita income $ 29,123 $1,000 or more 491 Median household income $ 68,229 Median family income $ 60,680 Median (26) • CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • `P�� 507 Neighborhood - Market Analysis _ r a y A ArIIM tl L' tl tlM h. y 3.. V0000, O0/P �•3r ` C'iM�� a • '1 � � . .^ Ywr. A ,wr MM M � �� P /ww. tl r G111M1,• S. °'• a«w+'"' Subject •�• rrfr µ YM.PWOOD r� ,�r ',. t wr.n. � • 7 �� ti.,' all � rr.n: ki! rrw. «dP"'k: •...�'�"r .--..: r ,,,'ray,: '�0 Y . �.YM ! M /ry, P t _• • Jew aW.—_. .�Ti • �MbM •■JMWi'MI da. dj. t ydj it h. i ...w.. , I. - A • 4..ft— , i . r .... Introduction The subject property includes all of the homes and vacant lots, located .on the east and west, sides of Jefferson Street, south of Westward Ho, and north of the Wash, and 1 SFR located at the NEC of Jefferson Street and Vista Grande, La Quinta, CA. All of the parcels are located in an area generally known as Indian Springs. All of the parcels front on the. Indian Springs Golf Course, except for the SFR on the NEC of Jefferson and Vista Grande. This home backs to the wash, and although it does not front on the fairway, a wide golf course view is available across the .wash. Development Trends Historically, this neighborhood developed around the Indian Springs Country Club. The Club fell into disrepair in the 80's and 90's. Demand proved limited in this location until approximately the late 1990's, when the Indian Springs property sold to a developer who has made substantial improvements to the property. Several hundred new homes have been successfully developed immediately north of the subject within Indian Springs over the past several years. The subject lots front on Jefferson Street. Jefferson has evolved into a major regional artery. However Jefferson narrows to 1 lane each way at the subject, creating a bottleneck. Consequently, the parcels located on Jefferson Street have historically had limited market appeal. Of the 22 developable lots located on Jefferson between Westward Ho and the Wash, 6, or 27.3% remain undeveloped, after over 40-years of market exposure. (27) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 43 508 Market Analysis n lots that rt values. in In light of the fact that developers build homes °n the subject are supports the excess of cost, the high percentage of vacants conclusion that the speculative development on these lots would not prove financially feasible, as of the date of value. Additionally, the cost -based value indicator for many of the subject homes exceeds the sales comparison -based indicator, suggesting that replacement cost exceeds value in many cases, as of the date of value. Although current sales data for units located on Jefferson Street is limited; the following table shows the historical sales data that is available for subject units with Jefferson Street exposure; No APN Owner Size Size Date Price Price PSF 1 649-090-002 Culp 7,841 2,333 11/20/1991 $185,000 $ 79.30 2 649-071-011 Peterson 11,326 2,025 0/12/1993 $130,00o $ $ 64.20 76.39 3 649-090-004 Waldo 7,841 7,841 1,872 1,984 2/27/1995 5/23/1996 $143,000 $165,000 $ 83.17. 4 5 649-090-006 Rodriguez 649-071-019 Astorga 10,454 2,130 2/9/1999 $130,000 $ 61.03 6 649-071-015 Nikolich 7,841 2,336 9/29/1999 $170,000 $ 72.77 7 649-071-016 Rolland 7,841 1,526 4/18/2000 $130,000 $ $5.19 8 649-071-017 Krakoff 7,841 2,419 9/14/2001 $210,000 $ 86.81 9 649-071-012 Waggoner 7,841 2,243 1 /31 /2003 $186.000 $ 82.92 In order to test the value trend for parcels with Jefferson Street frontage, the price PSF, sorted by date, is shown on the following graph: $100.00 $80.00 $60:00 $40.00 $20.00 $0.00 $ PSF Trend On Jefferson 91 93 95 96 99 99 0 1 3 Year -+- $ PSF Linear ($ PSF) As shown, values for homes on Jefferson Street have remained virtually flat, on a PSF level, since at least the early 1990's. Since approximately 20009 values appear to have declined slightly. The reason is that Jefferson Street has become increasingly more busy, lowering both the desirability and marketability of homes on Jefferson Street. (28) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 44 509 Market Analysis In contrast, I collected sales of adjacent lots from the same Map book,649-07, that do not have Jefferson Street frontage. The following table shows the data, followed by the same $ PSF chart: Unit Sale Sale Sale No APN Size Date Price Price PSF 1 649.061-008 2,050 9/1/1992 $179,000 $ 87.32 2 649-071-022 2,458 2/15/1994 $170,000 $ 69.16 3 649-063-010 2.080 3/8/1995 $178,500 $ 85.82 4 649-071-005 1,882 4/13/1995 $160,000 $ 85.02 5 649-071-027 2,496 7/21/1995 $160,000 $ 64.10 6 649-062-020 1,834 9/5/1996 $126,500 $ 68.97 7 649-071-035 1,983 4/30/1997 $155,000 $ 78.16 8 649-072-004 2,370 1115/19M $148-000 $ 62.45 9 649-063-012 1,822 4/30/1999 $150,000 $ 82.33 10 649-061-019 1,750 5/21/1999 $150,000 $ 85.71 11 649.061-007 1,907 9/8/1999 $145.500 $ 76.30 12 649-071-008 2,197 1/21/2000 .$160,000 $ 72.83 13 649-062-016 2,262 7/27/2000 $197,500 $ 87.31 14 649-071-033 1,789 3/30/2001 $ 225,000 $ 125.77 15 649-071-031 2,923 5/8/2001 $280,000 $ 95.79 16 649-061-013 2,305 5/25/2001 $225,000 $ 97.61 17 649-072-001 1,953 8/23/2001 $168,500 $ 8628 18 649-061-015 2.116 9/13/2001 $285,000 $ 134.69 19 649-063-014 1,710 10/24/2001 $ 225,000 $ 131.58 20 649-061-006 2,128 7/5aW2 $288,073 $ 135.37 21 649.062-011 2,569 10/16/2002 $ 320,000 $ 124.56 22 649-063-005 2,526 12/26/2002 $277,000 $ 109.66 23 649-063-015 1.936 Z 7/2003 $ 247,000 $ 127.65 24 649-063-008 1,928 5/22/2003 $225,000 $ 116.70 (29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 45 J 1 Market Analysis As shown, values have generally trended up for units in this neighborhood, off of Jefferson Street. For this reason, the comparables located off of Jefferson Street are adjusted downward in the Sales Comparison Approach for their superior location. This feature is partially offset by the fact that the subject units are located on the- golf course. While golf course locations typically command premiums, the premium for the subject lots is somewhat limited slightly as the lots located on the east side of Jefferson front on a short course. All of the lots front on public golf, which is an inferior attribute as compared with private club locations. However, upward adjustment is applied to all of the off_ fairway comparables in the Site Niew category. Conclusion The Jefferson Street exposure of the subject lots is the dominant physical feature of all of these units. The location is among the least desirable in the City of La Quinta, and consequently, these units carry overall low values as compared with the new homes located in the adjacent Indian Springs Country Club area. The situation is getting worse, as traffic on Jefferson continues to' increase. While overall residential market conditions are continuing to increase in the regional market, the value trend for the subject units is flat to decreasing slightly. The decreasing value trend on Jefferson is expected to continue as traffic increases on Jefferson Street. As shown b comparing the PSF sale prices for units on Jefferson, to those off � P 9 Jefferson (refer to the 2 tables of historical sales), it is clear that the market is not willing to pay the same PSF prices for unit on Jefferson as compared with those off Jefferson, where there are a number of sales with over $100 PSF sale prices. Alternatively, the highest PSF price paid on Jefferson Street in the past approximately 12-years is just over $86 PSF. Net of any eminent domain action, these trends are expected to continue through the foreseeable future. (30) CAPITAL REALTY ANALYSTS REAL ESTATE APMUSERS • ANALYSTS • ADVISORS 46 511 -MEW Site Analysis Subject Plat Map APN 649.07, Riverside County, CA --- AyrMp1E r r OD A � � » awrl 0 Ap h of s AV *A I LO :a� " ® � W-6 O a T�8 i< k a e �31 CAPITAL REALTY ANALYSTS REAL E TAu A"RmsERS • A►+nLYsrs • ADVISORS 47 J1� Site Analysis Subject Plat Map APN 649-09, Riverside County CA om 'u" \ s CZZ N � " b (32) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS 9 Mw. m 513 4t3 Site Analysis Subject Plat Map APN 649-14, Riverside County, CA .s: �jf \LLJ � R A v v A 4 r (33) CAPITAL REALTY ANALYSTS REAL ESTATE ATPRMSERS • ANALYSTS • ADVISORS 49 514 Site Analysis Location: East and west sides of Jefferson Street, south . of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-00.1 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Zoning: According to the City of La Quinta Zoning Map, aII of the subject parcels are zoned RL, Low Density. Residential. The existing zoning. is considered. reasonable and appropriate. No change in zoning : is likely as of the date of value. Site Size: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels are as follows: 1 649-071-006 Jeff L. 6 Petrkie C. LWey NrA e.s 2 649-071-M Ebb 6 Helen Wah 46055 Jefferson 8treM 9nA93 3 649-071-010 When Spdnp Land Co WA 4 640-071-011 David F. 6 Patride L. Peterson 46113 Jefferson Street 11.326 5 649-071-012 as 6 Suzb Waggoner 46145 Jeffereon str" 7A41- e 649-071-013 Eugene T. 6 Carol A Feaolc 46175 Jefferson SWO 7.641 7 649-071-014 David A. 6 Card A Elrod WA 7,641 6 646.071-015 Milan 6 Mile Nlkolich 46235 JeAarson Sheet 7A41 9 649-071-016 Petry Rolland 46305 Jefferson Sheet 7.841 10 649-071-017 Shef A Krekoff 46335 Jefferson Sweet 7.641 11 649-071-016 Tknothy K. Reynolds 46395 Jefferson SOW 7.841 . 12 649-071-019 Ronald Astorpe 46425 Jefferson Strata 10,454 13 649-071.02D Jeff L. 6 Patrida C. Leley WA SA63 14 649-071-021 Jeff L. 3 Patricia C. LNley WA 6.712 15 649-071-029 Jeff L. 6 Pat isle C. Lllley WA 1,742 16 6494)90-001 Harvey A. 6 Audrey R. MI9s 46170 Jelhrson Stred 7,641 17 649.090-002 Elaine L. 6 Robert L. Culp 46200 JMerum Street 7.641 16 649-090-003 Emms Reokle 46250 Jefferson Street 7.641 19 649-090404 Edward E. 3 Mare A. Wetdo 46260 JeMnon SWW 7.041 20 649-090-M William Haft WA 7.641 21 6494)90-006 Mitts Rodriquez 46390 Jefferson street 7,641 22 649-090.007 Charles J. fi Ake S. ZW&ky WA 7.641 23 649-090-M Sue F. Stedkq 46450 Jefferson Sbe9t 7,641 24 649-090-M John D. 6 Jocy P. Alexander 46460 Jefferson Street .. 9,146 25 649-141.001 Leonard C. & Margaret R. Henderson 60020 Vista Grande 10.454 Shape: Irregular. See Plat Maps Dimensions: See Plat Maps Frontage: E & W sides of Jefferson Street Topography: Finished residential lots. (34) CAPITAL REALTY ANALYSTS REAL ESTATE APPIwsus • ANALym • Ammons 50 J Site Analysis Accessibility: Street Improvements: Utilities: Electricity: Gas: Telephone: Water: Sewer. Flood Zone: Drainage: Hazards: Very Good Asphalt paved Utilities are available by the following utility companies: Imperial Irrigation District The Gas Company Verizon Coachella Valley Water District Coachella Valley Water District According to the Flood Insurance Rate Map, Community Panel Number 060709 0005 B, dated August 19, 1991., the subject property is located in Flood Zone X. Zone X is defined .as follows; "Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot, or with drainage areas less than 1 square mile; and areas protected by levees from the base flood." Surface drainage on the subject appears adequate. Other than' the fact that some parcels abut the Whitewater storm channel, none noted. As a real estate appraiser, I am not qualified to evaluate the site for toxic waste or hazardous substances. Therefore, the property has been appraised as though free of such substances. (35) CAPITAL REALTY ANALYSTS REAL ESTATE "P wsms • ANALYSTS • Ammon 51 516 Site Analysis Soils: The Appraiser was not provided with a soils report fot the subject property. This report assumes that there. are no hidden or unapparent conditions to the soil or subsoil . that would render the parcel more or less valuable.. My physical inspection of the subject property did` .not . , reveal evidence of obvious soils problems The Appraiser is not qualified to make a determination 'as to the existence or non-existence of hazardous materiels on the subject. Earthquake According to Plate 1A of the Seismic Geologic Map,: Hazard: dated January 19, 1982, revised 1988, the. subject . property lies within a boundary III Earthshaking -Zone; The subject property is not located in an Alquist-Priolo Special Studies Zone, or in areas determined to:'be in a liquefaction hazard area. The subject is not located in. an Area of Potential Subsidence. School District: Desert Sands Functional In physical respects, the functional adequacy..of the Adequacy of the land "As Is" considered impaired due tot he Jefferson Site, "As Vacant": Street frontage, as both traffic and noise are negative value influences. Additional comments are located in the Highest and Best Use Analysis of this report. Special Resources: The course of normal data gathering and analysis, and a visual inspection of the subject, did not reveal any evidence of. natural, cultural, recreational or scientific resources present upon the subject site. Units of In the subject marketplace, vacant land of the subject's Comparison: size and type is typically sold on a per developable .lot basis. The price per developable lot is. applied as the unit of comparison in the "As Vacant" condition. (36) CAPITAL REALTY ANALYSTS REAL ESTATE A" AtSERS • ANALYSTS • A 22 � 51pf 1 Site Analysis Relationship to The subject property conforms to the existing uses in Adjoining the subject neighborhood, which include a mix of older Properties: residential development, along with a significant amount of new residential development. The homogeneous zoning in this area leads me to conclude that SFRs will continue to be a conforming and homogeneous in the short term. (37) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 53 518 ®ce�xewe n eec�&E3E�te�e.w. ilc3lFiti!!€E!!#� R�4�QCRfi��Y� w F'trp� ak 9 54 loom O,,F4u&z- f A� Did Site Analysis Flood Zone Map + A 1 (39) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 55 520 Site Analysis Topographical Map (40) CAPITAL REALTY ANALYSTS REAL EsTATB AF-mmsm • AN LWm • Anvisom 56 521 Highest and Best Use Analysis Highest and Best Use is defined as: 1. The reasonable and probable use that supports the highest present value. of vacant land or improved property, as defined,. as of the date of appraisal. 2. The reasonably probable and legal use of land or sites as though vacant,. found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most profitable use. Implied in these definitions is that the determination of highest. and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations, the highest and best use. of land may b e for p arks, g reenbelts, p reservation, conservation, w ildlife habitats, a nd the like.' In estimating the highest and best use, there are essentially four stages of analysis: 1. Legally Permissible: What uses are permitted by zoning and deed restriction for the subject site? 2. Physically Possible: What are . the physically possible ' uses for the subject site? 3. Financially Feasible: What physically possible and legally permissible uses will produce a .net return to the owner of the site? 4. Maximally Productive: Among the financially feasible uses, which. use will produce the highest net return or the highest present worth? The following tests must be met in estimating the highest and best use: The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return. to the land the highest net return for the longest period of time. To estimate the highest and best use, these tests are applied to the subject property (1) as if vacant and. available for development, and (2) as presently improved. ' American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal (Chicago INMois: American Institute of Real Estate Appraisers 1984) Pape 152 5 2 (41) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 57 Hiahest and Best Use Analysis "As If Vacant" Legally Permissible The legal restrictions that apply to the subject are the public restrictions of the City of La Quinta's RL, Low Density Residential zoning ordinance. A large number of similar zoned parcels have been successfully developed in area of the subject, with no atypical legal constraints. The legal constraints of the subject are considered reasonable and appropriate and would not impair development of the site to its highest and best use. Physically Possible The subject parcels were subdivided and designed to be detached single- family residential lots, located on fairways of the Indian Springs Country Club. The size, shape, topography, and utility installations are all designed to support residential development. These aspects of the site represent the standard of acceptability f or s imilar residential lots. The Tots front o f Jefferson Street which is a major regional artery. The traffic impact and noise levels make these lots much less desirable as compared with neighboring residential lots, not located on Jefferson Street. While this feature does not prevent development, the lack of feasibility has prevented 8 of 22 lots from being developed. Financially Feasible Financial feasibility for residential development is typically estimated with a simple comparison of costs and benefits. If the cost to construct a prospective development exceeds the present value of the cash flows to be derived from the development, the proposed use is not considered feasible. Alternatively, if the present value of the expected income streams exceeds the cost to produce the proposed development, .the use is considered financially feasible. As described above, the fact that 8 f 22 lots remain undeveloped on Jefferson Street after over 40-years, while several hundred lots have recently been developed off Jefferson Street in the immediate area of the subject, suggests that financial feasibility for speculative development of residential units on the subject lots would not be financially feasible as of the date of value. Additional evidence is provided by the fact that no developers, owners, or lenders are risking debt and equity on new development n these lots. (42) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMsERS • ANALYSTS A�YORS �23 • Hiohest and Best Use Analysis "As If Vacant" Maximally Productive The physically possible and legally permissible uses for the subject property are present in the subject region. Other similar properties in the subject region have been successfully developed and absorbed. , As current financial feasibility for development does not appear adequate as Of the date of value, the most maximally productive use of the site. "As Vacant", is to hold the lots for investment until such time as development. of the lots becomes financially feasible. "As Improved" All of the improved homes add an increment of value that exceeds the current land value. Consequently, the highest and best use of the lots as improved is to remain as improved.. (43) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS •.AQ1,1�40RS `j 524 Appraisal Process The first step in the appraisal process is to identify the appraisal problem. Every real property is different and there are many types of values that can be estimated for any real property. For this appraisal assignment, the required value estimate for the subject is as follows: ♦ Just Compensation For The Part Taken The definition of market value has been defined in the Purpose of the Appraisal section of this report. The subject property and the type of value desired'have been identified. Through the appraisal process, it, is my intent to present a properly supported value estimate for the subject property. The market data, analysis and conclusions presented in the appraisal report should cause. a reasonable person to reach similar conclusions. There are three traditional approaches to estimating market value for this property type. These are the Cost Approach, the Sales Comparison Approach and the Income Approach. The approaches to value, and their applicability to this analysis, are described as follows; Cost Approach "A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting. accrued depreciation from the reproduction or replacement cost; and adding the estimated land value' plus an entrepreneurial :profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.", The Cost Approach is considered most relevant when the improvements are new, as depreciation can be estimated with a reasonable degree of accuracy. Another case when the Cost Approach works well is when market conditions are such that the typical buyer would realize similar yields by b uilding n ew, o r a cquiring a n e xisting set of i mprovements. I n this case, the vacant subject parcels do not have any improvements with an associated costa Consequently, the Cost Approach is not applied as a valuation method for the vacant parcels. The Cost Approach is applied to estimate the market value of the improved residential parcels. 44) CAPITAL REALTY ANALYSTS R AL BsTATE Arrwsas . MALym • AovaoRs J ti J 60 Appraisal Process Sales Comparison Approach "The Sales Comparison Approach is the process in which a market value estimate is derived by analyzing the market for similar properties and comparing these properties to the subject: property. Estimates of market rent, cost, depreciation, and other value parameters may be derived in the other approaches to value using comparative techniques. Often, these elements are also analyzed in the sales comparison approach to determine (estimate) the adjustments to be made to the sale prices of the comparable properties. The comparative techniques to analysis the applied in the sales comparison approach are fundamental process."$ The Sales Comparison Approach can be a strong indicator when sufficient comparable sales data exists, and is generally the best technique available to estimate the market value of vacant land, such as the vacant subject parcels. Additionally, SFRs such as the improved subject parcels are typically acquired based on their comparability to functionally equivalent substitute properties. Consequently, the Sales Comparison Approach is applied to estimate the market value of all of the subject parcels. Income Approach "A set of procedures through which an appraiser derives a value indication for an income -producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in 2 ways. One year's income expectancy can be capitalized at a market -derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternatively, the annual cash flows for the holding p eriod a nd t he r eversion can b e d iscounted a t a s pecified y laid Lacking improvements with income earning ability for the vacant parcels, and lacking sufficient rental comps for the improved parcels, The Income Approach is not applied for any of the subject parcels for this analysis. A reconciliation completes the analysis leading to the final value estimate." The oral aI Af Real Estate. Tenth Edition, Appraisal Institute,1992. Pape 367 ' The Dictionary Of Real Estate Aw it al, Third Edition, Appraisal Institute.1993, Pape 178 " Note that computerized spreadsheets may be used In this report. Numbers are typically accurate to 6 decimal points and rounded to the nearest whole dollar or 100th of a percent. Manual calculation of totals may result In insignificant (45) UAPITAL KEALTY AMALYII D REAL ESTATE AMPRAMERS • ANALYSTS • ADVISORS 61 526 Sales Comparison Approach The Sales Comparison Approach is the primary method applied to estimate the market value of all of the subject lots and homes. The Sales Comparison Approach is defined as follows: "A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available. As described in the Market Analysis and Appraisal Process sections, 4 sales are applied to estimate the market value of the homes and lots. Two sets of sales are included, One set of 4 sales is applied for the single-family homes, and another set of 4 sales are applied to estimate the market value of the fee simple estate in the subject vacant lots. Since the same set of sales are common to all of the homes and lots, the sales are. described once in this section, as follows:. - Single Family Home Comparables Comparable Sale Number 1 Comparable sale number 1 is the March 5, 2003 sale of a 1,879 SF home located on Vista Grande. This home is located immediately east of the subject Henderson (APN: 649-141-001) property. This sale was selected for comparison as it is located on one of the. subject streets, and has a view over the wash orthe golf course. At 10,454 SF, this is one of the largest lots in the Tract. The unit has a gated entry with a front -yard pool, which is common among several of .the subject SFR's. The unit has a split -bedroom floor plan and is on sewer. The unit sold for $235,000 and is not located on, Jefferson Street, which is a positive locational attribute. The unit does have a long golf course view. The original asking price was $239,000. The unit was on the market for 6 days. t0 The-Dicbonary of Real Estate isal, The Appraisal Instltute (46) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 527 62 • Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 2 Comparable sale number 2 is the November 2002 sale of a 1,928 SF home located on Fiesta Drive, west of Jefferson. The sale price was $225,000.. This data item was selected for comparison because it is a 1964 vintage home, which has recently been extensively remodeled. Consequently, this sale should represent the top of the market for older homes such as many of the subject units; that have been well -maintained. This sale does not have Jefferson Street exposure, which is a positive locational quality. The remodeled items include the following: Security System • New Carpet New Tile Floors Corian Kitchen Counters New Tile Counters New Sinks and faucets in baths New vertical blinds New FAU New Dishwasher New pool / deck Although the location off of Jefferson Street is superior, the lack of golf course exposure is a negative site attribute in comparison to the subject golf course lots. The original listing price was $259,000. The.unit was on the market 80 days. (47) CAPITAL REALTY ANALYS79 REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 63 528 Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 3 Comparable sale number 3 is the .February 2003 sale of a 1,935 SF home located on Cortez Lane, west of Jefferson Street. The sale price was $247,000. The original asking price was $279,500. The unit was on the market for 63 days. The seller had replaced the original shake roof with a new tile roof just prior to the sale. Additionally, the pool and deck had recently been redone. The home has shutters on all windows. These features required a downward adjustment in the upgrades category. The unit is a superior location off of Jefferson Street. However, the lack of golf frontage is a negative site quality. This feature is partially offset by the fact that the unit has a very long view. . Comparable Sale Number 4 Comparable sale number 3 is the May 2003 sale of a 2,444 SF home located on Roudel Lane, west of Jefferson Street. The sale price was $240,000. The original asking price was $299,950. The unit was on the market for 198 days. The long marketing time, and wide disparity between the listing and selling prices demonstrate the market resistance and price barrier for older improvements in this sub -market. This sale was selected to demonstrate a larger unit sale. Additionally, this is a very recent sale in the market. (48) CAPITAL REALTY ANALYSTS RP.AL ESTATE A "RAISERS • ANALYSTS • ADVISORS 64 J199 Sales Comparison Approach Vacant Lot Comparables Comparable Sale Number 1 Comparable sale number 1 is located along. Hummingbird, just west of Jefferson Street. At 20,038 SF, this lot is large for the neighborhood. The lot sold on 4/22/03 for $63,500. The lack of Jefferson Street frontage is a positive feature. The lack of golf course exposure is a negative feature. Overall comparability is considered good: Comparable Sale Number 2 2 is the 8/13/01 sale of a 10,019 SF SFR lot,. Comparable sale number located just west of Jefferson Street. The sale price was $46,000. This data item is considered typical of lot values off the golf course, in the immediate area of the subject. Overall comparability is considered average. Comparable Sale Number 3 located in the Comparable sale number 3 is an example of a larger lot, Cove area of south La Quinta. Lacking sufficient sales from within the immediate area of the subject, I elected to pick.a sale from the Cove area, where there are older homes mixed with newer homes, such as those of the subject area. However, the Calle Tampico location is considered superior. The lot sold on 1/16/03 for$80,500. Comparable Sale Number 4 Comparable sale number 4 is a 6,098 SF SFR lot sale taken from Laguna De La Paz. This sale was selected for comparison, as the lot fronted on the lake, which is considered to be of a .similar value as compared with a golf course exposure. The development is gated. The lot sold on 1/23/03 for $73,000.Overall comparability is considered average. Valuation Sections The following sections outline the valuations for each of the subject parcels: (49) CAPITAL REALTY ANALYSTS REAL EsrATE A.nwsEn 9 AmLym * Ammon 530 Wah 649-071-009 Owner of Record: Ellis & Helyn Wah Property Type: Single Family Home Location: 46055 Jefferson Street, La Quinta, CA. Identification: Census Tract Number: Site Size: Site View Elements: Improvement Description: Estimated Economic Life: APN: 649-071-009, Riverside County, CA. Tract 452.05 9,583 SF West facing lot with a golf course view, and Jefferson Street frontage. The property is improved with a 2,632 SF, Class D (wood frame) 3 bedroom / 2.5 bath single-family home, and a 6 98 S F 2 -car g arage, w hich i s a ttached t o t he main house. The roof is wood shake. The property has a rear -yard pool and a 10' x 18' storage area. The improvements were constructed new in 1972, and were observed to be in fair condition on the date of value.. 60-Years Estimated Effective Age: 20-Years Highest And Best Use, "As Vacant": Highest And Best Use, "As Improved": Final Value Estimate: Sales History of the Property: Hold for investment Remain "As Improved" $243,000 According to the current owner, the property is not listed for sale, and has not transferred within the past 3-years. (54) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 66 531 • • `='ajo ographs Relating w, the Subiect Prope!!Y The subject property viewing NW from Viewing NE at the rear of the subject .IPfferson Street. nrnnPrty. The rear yard has a good golf course The kitchen is somewhat dated, but nas built-in appliances. The living room has a stone fireplace wall. - - -- - A portion of the garage has been converted to living area. This space is now used for storage. (55) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADvISORs 67 532 Floor Plan 46OW Jefferson Street b n Cwwr:r - AREA CALCu.ATIONS SU MARY. LMNO AREA BREAKDOWN e•■. trn4u• an no err rwrr•.. l�ri oat n••• n— !al1.N !ln.N n■•• F&— ■.. Q..." lw.N lw.N 12.6 . 11.! 8361.96 !J • !!.! 1N.M �.• • !.! - M.N TOTAL LIVABLE (rowWed) 263 4 CMW" w TOW (rounded) 2632 row an.wsr — KotK rvMarcllpr�r /dlwl y+r arse k — t-0O�AIANOOE REAL ESTATE APPRAISERS 0 ANALYSTS 0 Aov S o 5 3 3 Cost Approach Address: 46055 Jefferson Street APN: 649-071-009 Estimated Site Value: $ 72,000 Estimated Reproduction Cost New: SF Cost Extension Dwelling . 2,632 $ 54.33 $142,997 Other $ - $ Other $ - $ Garage 698 $15.71 $ 10,966 Multiplier 1.1413 Total Cost New $ 247,717 Physical Depreciation 33.33% $ 51,321 Functional Depreciation 0.00% $ External Depreciation 0.00% $ - Depreciated Value $196,396 Site Improvements $ 35,000 Total Cost -Based Value $ 231,396 $231,396 $231,000 (Rounded) (Two Hundred Thirty One Thousand Dollars) (57) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS 9 ADY9'4' 5 • ov�oo25oZSo7S.000 u"i NN N N y N M 44 CC 10 J z to p N M �1 N to 0r" toN N og�oo�C, N Np N H Ip H N N H H l6 z t3 �p m J �yp O ZC l0 CL y � N P N �e � N C N M N Vi Of N G. F n P z 08f $ C', N H.. N N N v v H z N co to cc pt O I p ppO p p 8O '`QQ! Cp in In H� p H M H H N N y y -" H N v N y N V v N .. to to CL co 1 o t t� A y z mi C', N a a a Q ;cn��aa�a NNcia3 z z C 0 N N L � LL Of C �0 c c IL U m D d p~ i It~ I W 5 q �O 1 ai oulo $ 7m F Z V 7o 535 Conclusion The cost -based indicator came in at $231,000. The Sales Comparison --based indicator came in at $243,000. Although this is an older home, it is among the largest in this area. The property appeared well -maintained for its effective age. Most emphasis is placed on the Sales Comparison Approach. Based on, the available data, it is my opinion that the market value of the subject property, based on the definition of market value described in the introduction section of this report, is as follows: $243,000 (Two Hundred Forty Three Thousand Dollars) (59) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • ADVLY Certification I certify that, to the best of my knowledge and belief, The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions- and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of 's stipulated result, or the occurrence or a subsequent event. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person(s) signing this report. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the .Appraisal Institute. The use bf this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration Date: October 24, 2005 (1 77) CAPITAL REALTY ANALYSTS REM. ESTATE AMRAISERS • ANALYSTS• ADVISORS 72 537 Addendu (178) CAPITAL REALTY ANALYSTS. REAL ESTATE ArriwSSIM • ANALYSTS • ADVOMS 73 538 y Assumptions and Limitina Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to. be good and marketable unless otherwise stated. 2.The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The- information furnished by others is believed to be reliable. However, no warranty is given for its' accuracy. The appraiser reserves the right to make adjustments to the analyses, opinions and conclusions in this report, as maybe required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. .7. It is assumed that the property is in full compliance with. all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered,in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions u nless n onconformity h as b een i dentified, d escribed a nd c onsidered i n t he appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative -authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed fore such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. (179) CAPITAL REALTY ANALYSTS REAL ESTATE ArmisERS • ANALYSTS • ADVISORS 74 533 Assumptions and Limiting Conditions 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of. this report, or a copy thereof, does not cant' with it the right of publication. It may not boused for any purpose by any person other than the party to whom it is addressed. without .the. written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The* appraiser herein by reason of this appraisal is not required to give.. further consultation, testimony, or be in attendance in court with reference to the property in. question unless .arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any concluskme as to value, t he I dentity o f t he a ppraiser, o p t he f irm w ith which t he a ppreiser 19 c onnected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 16. Improved Properties - The Americans with Disabilities Act ("ADK) became effective January 26, 1992. 1 (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various. detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no din9cf evidence relating to this issue, 1 (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to the Appralser(s), and described in the Improvement Description section of this report. 18. The legal descriptions, site sizes, 'dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. (1 80) CAPITAL REALTY ANALYSTS MAL ESTATE AKRAISERS • ANALYSTS • ADVISORS 75 540 �m MICHAEL A. SCARCELLA, MAI Education 1982 B.S., Business,. University of Nevada, Las Vegas 1991 Real Estate Appraisal Principles. 1992 - Basic Valuation Procedures 1992 - Standards of. Professional Practice 1993 - Basic Income Capitalization 1993 - Advanced. Income Capitalization 1994 Report Writing &. Valuation Analysis 1995 -Advanced Applications 1996 - Federal & State Laws & Regulations 1997 - Standards Part A & B 1997 - Property Management 1997 - Real Estate Economics 1997 - Real Estate Finance 2000' Report Writing 2001 - Tax Free Exchanges Professional Organizations/Licensing Member of the Appraisal -Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser". Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute — So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee; 1999, 2000 So. Cal. Chapter Ethics Committee FAA Certificated Pilot #551317536 General Experience 1997 to Current Capital Realty Analysts - President .1991 to 1996 - MacKenzie and Associates — Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta P.S. Unified School District Desert Sands School District Southern California Edison Mojave Water Agency Desert Hospital Private Sector Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States Filter Sunrise Company Canyon Development Magellan Corporations Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Institute of the Desert Basic Capital Management Developers Attorneys Accountants Institutional Lenders Bank of America Home Savings Wells Fargo Bank El Dorado Bank Washington Mutual Bank Bank Midwest Pacific National Bank Canyon National Bank Banc One Fidelity Federal Bank Bankers Trust Company First Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Foothill Independent Bank Valley Independent Bank First Bank (181 ) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 76 541 • • NOTIFICATION OF RIGHT TO CLAIM LOSS OF BUSINESS GOODWILL The City wishes to acquire a portion of the property situated at (Address), California for the purpose of the Jefferson Street Widening Project, Phase 2. You have received this "Notification of Right to Claim Loss of Business Goodwill" because you have been identified as the owner of the property. In certain circumstances, the owner of a business operating on property subject to eminent domain may be entitled to claim compensation for loss of business goodwill, when it can be shown the loss is caused by the acquisition of property by the acquiring public entity, or by the project for which the property is sought to be taken. The City's offer. of just compensation included in this letter does not include any amounts for loss of business goodwill. If you own or operate a business on the property which is the subject of this offer letter, you are. requested to review this "Notification of Right to Claim Loss of Business Goodwill," and the "Claim for Loss of Business Goodwill," and "Loss of Business Goodwill Questionnaire" attached hereto. If you do not own or operate a business on the property, but know of a person or entity who does, you are requested to notify the City with the name, phone number, and address of such person or entity, so that these forms can be forwarded to the appropriate party. California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.510 of the California Civil Code of Procedure states: (a) The owner of a business conducted on the property taken, or on the remainder if such property is part. of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property of the injury to the remainder. 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill. 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code.' 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. ' Section 7262 of the Government Code refers to compensation to displaced persons for moving and related expenses as a part of the cost of the acquisition of real property for a public use. Compensation for the loss of goodwill under Section 1263.510 of the California Civil Code of Procedure will only be made to the extent such loss is not compensated for under Section 7262. For more information regarding a business owner's eligible payments under the Relocation Assistance Program, please call Kathy Woolley at 760-7724255. 119/01%10-"8 -7- �� 4 419343.01 a07/79/03 • . • (b) Within the meaning of this article, "goodwill' consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstance resulting in probable retention of old or acquisition of new patronage. If you wish to file a claim for loss of goodwill at this time, please complete, sign, and return the attached Claim for Loss of Business Goodwill and Loss of Business Goodwill Questionnaire within sixty (60) days of the date of this notice. In addition, please submit the information requested below. This information will assist the City in completing an analysis concerning the claim for a loss of goodwill. However, if you wish to wait until a later date to make a claim for loss of goodwill, please send us the claim, questionnaire and the other requested information at that time. 5. State of California Income Tax Returns The law places the burden upon the business owner to provide state tax returns pertaining to the business to support the claim for.loss of goodwill. Please supply true copies of your tax returns for the last five tax years, or your period of ownership if less than five years. : 6. Business Financial Statements Please provide true copies of your Balance Sheets, Profit and Loss Statements and/or Cash Flow Statements for the current year to date and each of the prior five years or your period of ownership, if less than five years. 7. Tangible Assets Include a list of the furniture, fixtures, machinery and equipment belonging to your business. Please use the itemization sheet attached to the questionnaire. 8. Intangible Assets Include a list of such assets as patents, liquor licenses, etc. Please use the itemization sheet attached to the questionnaire. 9. Business Purchase Documentation If you have purchased the business within the last five years, please provide true copies of documentation (escrow instructions, purchase agreement, bill of sale, etc.) which provide details of the transaction including financing, the assets purchased, agreements not to compete, and how the total purchase price was allocated to inventory, fixtures, equipment, licenses, goodwill, etc. A loss of goodwill analysis and valuation normally includes a personal interview with the business owner. An interview will be scheduled after we receive the requested information. 119/015610-0008 _8_ 419343.01 a07/29/03 7 543. CLAIM FOR LOSS OF BUSINESS GOODWILL Business: Business Address: This form and the attached completed, signed questionnaire with tax returns and other supporting documentation constitute formal notification to the City, that the owner(s) of the above business entity contend(s) that the business will suffer a compensable loss of business goodwill due to its displacement or disruption by the proposed project. 1. Our estimate of total goodwill is $ 2. Our estimate of the compensable loss of goodwill is $ 3. The loss of goodwill after taking measured to minimize the loss is caused by: 4. The following measures will minimize the loss of goodwill: The undersigned owner or duly authorized officer has executed this notification on behalf of this business operation. Name: Date Title: Address: 119/015610-0008 -9_ 79 544 419343.01 a07/29/03 • 0 LOSS OF BUSINESS GOODWILL QUESTIONNAIRE Business. Owner: Business Name: Business Address: Type of Ownership: Business Identification Number: 1. What type of business do you operate? What type of products are sold or manufactured? What type of services are provided or sold? 2. When was the business started? 3. When did you obtain ownership of the business? 4. How long has the business been at the above address? 5. What type of clientele does the business have? Do you have key customers or clients? 6. From what geographic area does the business draw its patronage? What percentage of the business volume is drawn from each of those areas? 7. Does the business operate at any other location? If so, where and what percentage of total business volume is generated from each of the other locations? 8. Is the business part of a chain? Is it a franchise? If so, provide details including fees, marketing agreements, etc. 9.. Who are the business's major competitors? Where are they located? (If more room is needed for any answers, please insert additional sheets and continue by number.) 119/015610-0008 -10- 80 419343.01 a07/29/03 545 • • 10. How many*days a week is the business open? What are its hours of operation? 11. How many persons are employed by the business? Please provide the following? Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 12. What were the main factors you considered in operating your business at the present location? What are the locations' advantages? Disadvantages? 13. What improvements did you make to the present location in order to open for business? 14. If you are a tenant, to what improvements do you claim ownership? 15. Were there any special requirements to open for business, e.g., rezoning, permits, special use permits, health and safety permits, environmental report, etc.? Please provide details. 16. What area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 17. If you are a tenant of the area you lease, how much, if any, is not used in your current business operation? Land sq. ft. Improvements sq. ft. 18. What future plans (expansion, etc.) do you have for the business? Please give specifics. 19. Did you have any prior plans to relocate the business? If so, where and when? 20. What would be your site and building requirements at a new location? a. Type of building (freestanding, strip center, storefront, etc.): b. Building size: C. Site size: d. Site distance from existing location: e. Parking requirements: f. Utility requirements: g. Loading docks? Truck? Rail? 119/015610-0008 -1 181 - 419343.01 R07/29/03 546 0 .0 h. Other special plant, service, or locational needs: i. Monthly rental (range): 21. Describe what problems, if any, you foresee in re-establishing the business? 22. Have you looked for or found a replacement location because of the State's project? Have you made any relocation plans? If so, provide details. 23. What, in your opinion, is the market value that a knowledgeable buyer would pay for your present business? Allocate as follows: Value of the tangible assets: $ Value of the intangible assets: $ Value of the goodwill: $ Total value: $ 24. What is your estimate of loss of the goodwill which may result from relocation or disruption of your business? 25. What do you believe would cause this loss of goodwill? Do you believe the loss would be temporary or permanent? 26. What reasonable steps can you take to avoid or reduce this loss of goodwill? 27. How would you perform these steps? 28. What do you think the cost of these steps would be? 119/01561009 419343.01 a07/29/03 -l2 $2 5 4 If you have already relocated or will remain at the existing location but have suffered a disruption in your business at the time you submit your claim, please answer the following questions: 29. The address of the new location (if applicable). 30. Date business closed at the old location and the opening date at the new location. 31. Price paid for new location or copy of lease/rental agreement. 32. Improvements made and their individual cost in order to reopen (or continue) business. 33. In its relocated or disrupted state, what area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 34. Hours of operation at the new location. 35. How many persons are employed in your relocated or disrupted business? Please provide the following: Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 36. Market area served at new or disrupted location. 37. Customers lost, if any at new or disrupted location. 38. Number of new customers at new or disrupted location. Please include the signature of person preparing the answers to this questionnaire and nature of interest in the business. Name: Interest: Date: 1191015610-0008 -13- 83 518 419343.01 a07/29/03 ATTACHMENT 2 Tit* 4 4 0". - P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 December 29, 2003 Ellis Wah Helen Wah 46055 Jefferson Street La Quinta, CA 92253 (760) 777-7000 FAX (760) 777-7101 Re: ASSESSOR'S PARCEL NUMBER 649-071-009 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46055 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46055 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-071-009 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project'1. California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQN). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in 119/015610-0008 458250.01 a12/24/03 Ellis Wah Helen Wah December 29, 2003 Page 2 the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for this purpose. If the City Council finds that these conditions have been met, the City. Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled -to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen(15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment. between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152-of the Public Resources Code. The Addendum found that no effectson the environment are anticipated that cannot be reduced to a'level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental 119/015610-0008 85 5 J O 459250.01 a12/24ro3 Ellis Wah Helen Wah December 29, 2003 Page 3 Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. 2003 the City adopted the Relocation Plan In addition, please be advised that on November 18, � az.� b Overland, for the Jefferson Street Widening Project, Phase II, La Quinta, California, prep y Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yo , M. Kath nine Jenson City Attorney, City of La Quinta Attachment 119/015610-0008 86 458250.01 a12/24/03 551 .7 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: That Portion Of Lots 18 And 19, Tract 2190 As Shown By Map On File In Book 41 Pages 55 Through 57 Of Maps, Riverside County Records, Described As Follows: Commencing At The Northwest Comer Of Lot 18; Thence South 0° 04' 39" East 18.71 Feet To The True Point Of Beginning; Thence South 0° 04' 39" East, 95.00 Feet;. Thence North 890 55' 21" East, 100.0 Feet To The East Line Of Lot 19; Thence North 0° 04' 39" West, 95.00 Feet; Thence South 89° 55' 21" West, 100.0 Feet To The True Point Of Beginning. APN 649-071-009 87 �� 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certaij Real Property Located At 46055 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Ellis Wah Helen Wah 46055 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collection and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same d . in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date'is more than one day after dat of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 2046/015610-0008 463467.01 a12/29/03 ss Z)33 I'M;304H okY�V 554 89 ('. ATTACHMENT 4 Westward Ho Property Owners' Association G„ A,V oo&— o• La Quinta City Council Members From: Jefferson Street Property Owners w _ Date: 3 2 , ° �' 3 _ 3=�. rn a Dear Council Members; 3 NQ = m The property owners on Jefferson Street that will be aliened by the road widening, wish to bring this informative letter to the attention of the La Quinta City Council. There are j C- homes and SS lots between the wash and Westward Ho Drive. The names that.appear below have stated they prefer to have their homes and lots purchased by the City under Eminent Domain. The owners on both sides of Jefferson Strees*vve shown a majority of signatures below. This fact would make the case for widening the street equally on both sides rather than bend it either way. 1. Name G Address 2. Name Address yZ. irr Jert2 3. Name 9,/! Ule- J4 Address 4. Name Address 5. Name 44,44 .:aa,, (& Address ,A v 6. Name Address . i 7. Name Address -- R . 5.1: 11?h �r'r /, er 555 IS 4 - Westward 146 Property Owners' Association 8. Name Address 4/,@ 9. Name Addre 10. Nam Add 11. Name Address -+io- 12. Name Addr, 13. Name Addri 14. Name 4 1 -� Address q 15. Name a —4 Address Iv 16. Name Address 17. Name Address 18. Name Address "I 556 79860 Fiesta Drive e La Quinta, CA 92253, * (619) 347-8351 ATT 91 557 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. OEV. i KATHY JENSOH IM 002/004 ATTACHMENT 6 PLANNING COMMISSION RESOLUTION 2003-059 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING FINDINGS OF CONFORMITY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 65402, FOR A POTENTIAL ACQUISITION OF PROPERTY FOR THE WIDENING OF JEFFERSON STREET. GENERAL PLAN CONFORMITY FINDING APPLICANT: CITY OF LA QUINTA WHEREAS, said Section 05402 requires the jurisdiction's planning agency's (i.e., Planning Commission) review and report upon whether the proposed acquisition of real property for public purposes is consistent with the adopted General Plan; and WHEREAS, the Planning Commission of the City of La Quints, California did on the 12th day of August, 2003, hold a pubic meeting to consider a finding of conformity with the General Plan for said potential Project Site, more particularly described as, APN: 649-071-008 THROUGH 021 AND 029; 649-090-001 THROUGH 000; AND 649-141-001 WHEREAS, the Planning Commission did make the following findings of conformity with respect to the proposed project: The proposed acquisition is in conformance with the La Quinta General Plan, as follows: 1. LAND USE ELEMENT: The recently adopted General Plan Land Use Element designates the properties as Low Density Residential (LDR), up to four dwelling units per acre. The Element indicates the need to maintain compatible high quality land uses. The widening of Jefferson Street will not alter the surrounding land use designations, and is consistent with the Element. 2, CIRCULATION ELEMENT: This Element designates Jefferson Street as a Major Arterial Road with a 120 foot width right-of-way. This project will allow the street to be expanded to comply with this Element. 3. OPEN SPACE ELEMENT: No key planning issues or policies are identified. 4. PARK AND RECREATION ELEMENT: No key planning issues or p0licia8 are identified. 92 jJs 01/Y2/2004 12:50 FAX 7607771233 LA QUINTA COMM. OEV. • KATHY JENSON IM 003/004 h Planning Commission Resolution 2003-050 Jefferson Street Widening - General Plan Conformity Finding Adopted! August 12, 2003 Page 2 S. ENVIRONMENTAL CONSERVATION ELEMENT: No key planning issues or policies are identified. 6. NATURAL RESOURCES: This Element provides several policies and programs designed to protect and preserve the unique and/or valuable resources, including biologic resources, The properties at Issue are disturbed. To the extent applicable, this project will be subject to the requirements of the Coachella Valley Fringe -Toed Lizard Fee Mitigation Program and other applicable mitigation measures. 7. INFRASTRUCTURE AND PUBLIC SERVICES ELEMENT: No key planning issues or policies are identified. 8. ENVIRONMENTAL HAZARDS ELEMENT: This Element indicates that the site is within an. area that is susceptible to wind-blown sand, collapsible soils, potential liquefaction hazard, and seismically Induced settlement. If the properties are acquired, the widening of Jefferson Street will most all applicable engineering requirements, and the street and landscape improvements will reduce the potential for blowsand in the vicinity of the subject property. 9. CULTURAL RESOURCES ELEMENT; No key planning issues or policies are Identified. 10. HOUSING ELEMENT: As a result of widening Jefferson Street the project requires acquisition of residential and vacant lots. Acquisition of the residential properties will not displace substantial numbers of people or existing housing, and will not necessitate the construction of replacement housing elsewhere, because the acquisition involves a relatively small number of properties and the current housing conditions reveal that there is more than adequate existing housing in La Quinta to accommodate the displaced households. Likewise, state mandated relocation benefits will be paid to applicable displaced persons In accordance with the Uniform Relocation Assistance & Real Properties Act of 1970, as amended, and owners of the residential property will be compensated fair market value for their property,. determined on the basis of the highest and best use. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the recitations are true and constitute the findings of the Planning Commission in this case; and P:10soar\Resolut1onslrsso Jefferson st,doo 5-9 01/22/2004 12:51 FAX 7607771233 LA QUINTA COMM. DEV. KATHY JENSON IM004/004 Planning Commission Resolution 2003.069 Jefferson Strut Widening • General Plan Conformity Finding Adopted: August 12, 2003 Page 3 2. That it does hereby adopt this finding of conformity for the reasons set forth. in this Resolution, and as shown on the Map attached hereto as Exhibit "A". PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Planning Commission held on this 12th day of August, 2003, by the following vote to wit: AYES: Commissioners Abele, Daniels, Tyler, and Chairman Kirk NOES: None ABSENT: Commissioner Quill ABSTAIN: None ATTEST: MY HErRMAN, Community Development Director Ity of La Quints, California P:\0scer%Resclut1ons\reso jefferson st.doo ARK, Chairman of La Quinta, California 94 560 / T Iry 5 OF T 9� COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Public Hearing to Consider Adoption of a Resolution Declaring the Public Interest and Necessity of Acquisition of Property Located at 46-175 Jefferson Street, La Quinta, California (APN 649-071-013), for Jefferson Street Improvements, Phase ll, Highway 1 1 1 to Indio Boulevard, Project 2000-19 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of property located at 46-175 Jefferson Street, La Quinta, APN 649-071-013, for the purpose of improving Jefferson Street. FISCAL IMPLICATIONS: The appraised fair market value of the property proposed for acquisition is $268,000. In addition to that expense, the property owners will be entitled to certain relocation benefits. Additional costs will be incurred in legal fees, appraisal fees and court costs relating to the initiation of eminent domain proceedings if the Resolution is approved and the matter proceeds to court. The proposed Jefferson Street Phase II improvements are funded in accordance with the Reimbursement Agreement and Memorandum of Understanding between the City of La Quinta, the City of Indio, the County of Riverside, and the Coachella Valley Association of Governments ("CVAG"), as amended. The overall project costs for the Phase II improvements are estimated at $16,700,000. CVAG has agreed to pay 75% of these costs. The remaining 25% will be paid by the jurisdiction in which the improvements are constructed. The City of La Quinta's funding contribution (25% of the project costs within its jurisdiction) is estimated at $2,797,250. Of this amount, the City has been provided a credit in the amount of $963,000 from State Transportation Improvement Program funding obtained by the City to offset the costs 561 of the newly included bridge across the Whitewater River. The City has also been provided a credit in the amount of $1,647,184 as repayment for the regional share advanced by the City for the Washington Street Improvements. The City shall be responsible for repaying any balance of its portion of the proposed improvements minus its credit in the amount of $2,610,184. Considering the City's estimated costs are $2,797,250, the City's out-of-pocket share will be approximately $186,466. However, the City's actual contribution will be calculated based upon the project's final costs. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff proposes, for the City Council's consideration, and recommends approval of, a Resolution of Necessity to authorize acquisition of the property located at 46-175 Jefferson Street, within the city limits of the City of La Quinta. The property is to be utilized for the widening of Jefferson Street, Project 2000-19. This property was appraised by Michael A. Scarcella, MAI, of Capital Realty Analysts. Mr. Scarcella reviewed the applicable market data, identified and analyzed relevant comparable sales, and issued his opinion that, as of the date of value (June 10, 2003), the fair market value of the property was $268,000. A legal description of the property referenced in the proposed acquisition is attached to the Resolution as Exhibit A. Staff obtained title information reflecting the vesting of the property from Chicago Title Company, and an offer to purchase the property for the full amount of the appraised value was sent to the record owners on July 30, 2003. The offer letter transmitted all comparable sales upon which the appraiser based his opinion of value and the relevant parts of his appraisal report. A copy of the offer letter is provided as Attachment 1. Staff, the City's right-of-way consultant (Overland, Pacific & Cutler, Inc.), and the City Attorney have communicated with the owners and their legal representative in an attempt to review any information the owners may have regarding value, and to work towards the goal of reaching an agreement on the transfer of the property by way of a negotiated acquisition. As of the date of this report, no such agreement has been reached. As such, staff is now recommending the City Council consider and adopt a Resolution of Necessity, authorizing acquisition of the property by exercise of eminent domain. r 2 562 Under Code of Civil Procedure Section 1245.220, the City may not commence an eminent domain proceeding until the City Council has adopted a "Resolution of Necessity." As a part of the Resolution, the City Council must find and declare each of the following: 1. The public interest and necessity require the proposed project. 2. The proposed project is planned or located in the manner that would be most compatible with the greatest public good and the least private injury. 3. The property described in the Resolution is necessary for the proposed project. 4. An offer meeting the requirements of Government Code Section 7267.2 has been made to the owner of record. The owners of the property are entitled to be heard on this subject, and on the issue of whether the City has followed all other procedures and is otherwise authorized to acquire the property by exercise of eminent domain. Notice to the property owners of this Resolution of Necessity hearing, and the subjects to be considered and proposed to be determined, was sent to the record owners on December 29, 2003. A copy of this notice is provided as Attachment 2. As of this date, the City has received no response from the property owners relating to this hearing. The Public Interest and Necessity Require the Proposed Project The acquisition of the property is proposed for the Jefferson Street Improvement Project, Phase II, Highway 111 to Indio Boulevard. The project will include the widening of Jefferson Street from two lanes to a six -lane, arterial highway, with a typical 120' cross-section. A diagram showing the extent of the project is submitted herewith as Attachment 3. Staff believes that the public interest and necessity require the Jefferson Street Improvement project. A traffic analysis was conducted by Mr. Robert Ross, P.E., of RBF Consulting, a copy of which is included as Appendix 8.1 of the 1999 Initial Study/Mitigated Negative Declaration for the project, which is being transmitted to the City Council under separate cover. Pursuant to the Coachella Valley Area Transportation Study, the Valley is one of the fastest growing areas in Southern California, and is expected to increase to over 312,000 by the year 2010. The project is necessary to accommodate the projected growth and population increase and to accommodate safe traffic movements. Staff concurs with Mr. Ross' assessment. 3 563 The Proposed Project Is Planned Or Located In The Manner That Will Be Most Compatible With The Greatest Public Good And The Least Private Injury The improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway, providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The widening of Jefferson Street is designed to relieve regional traffic congestion and improve the capacity of the street, which will require continuity in the roadway alignment and traffic handling capacity of the street. The project also improves an important linkage to Highway 111 and the 1-10 for existing and proposed residential, commercial and resort uses in La Quinta and Indio. The project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including enhanced safety during flood events. In addition, the bridge will provide additional opportunities for wildlife movement and habitat access. The project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from the roadway. On January 22, 2003, the City received a petition signed by many of the affected property owners, including one of the owners of the property which is the subject of this public hearing. The petition was in support of the chosen alignment. The persons signing the petition indicated that they preferred to have the symmetrical widening of the roadway, and that they "prefer[ed] to have their homes and lots purchased by the City under Eminent Domain." A copy of the petition is provided as Attachment 4. These facts support the finding that the project is designed in a manner compatible with the greatest public good and the least private injury. The Property Described In The Resolution Is Necessary For The Proposed Project As is shown on Attachment 5, the proposed widening of Jefferson Street would require that the right-of-way extend right up to the single-family home on the subject property. It would not be practical or safe to widen Jefferson Street without acquiring the subject property and demolishing the home. Acquiring the property is therefore necessary for the project to proceed. Other Requirements The project has been reviewed and approved under the California Environmental Quality Act ("CEQA"). Originally, the project was reviewed in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66. 564 4 On August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements. On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code. In considering the Resolution of Necessity, the City Council should consider the environmental information contained in the Addendum, along with information in the 1999 IS/MND. Both documents have been distributed to the City Council under separate cover. In addition, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003- 059 reflecting such findings. A copy of that Resolution is provided as Attachment 6. Lastly, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development as required by law. Therefore, all of the legal prerequisites to the adoption of a Resolution of Necessity have been satisfied. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-175 Jefferson Street, La Quinta, APN 649-071-013, for the purpose of improving Jefferson Street; or 565 5 2. Conduct a public hearing and do not adopt of a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-175 Jefferson Street, La Quinta, APN 649-071-013, for the purpose of improving Jefferson Street; or 3. Provide staff with alternative direction. Respectfully submitted, i motJon on, P.E. icWorTblks Director/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Offer letter 2. Notice of Resolution of Necessity Hearing dated December 29, 2003 3. Project Diagram 4. Petition of Jefferson Street homeowners dated January 22, 2003 5. Property Area Map 6. Planning Commission Resolution No. 2003-059 566 6 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-175 JEFFERSON STREET, LA QUINTA, CALIFORNIA (APN 649-071-013) FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, PROJECT 2000-19 WHEREAS, the City of La Quinta has been investigating potential acquisition of property located at 46-175 Jefferson Street, in the City of La Quinta, bearing Riverside County Assessor Parcel No. 649-071-013, and more specifically described in the legal description attached hereto as Exhibit "A," which is incorporated herein by reference ("Property"); and WHEREAS, the City has been investigating potential acquisition of this Property for the widening of Jefferson Street, specifically the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 ("Project"); and WHEREAS, on February 3, 2004, after no less than 15 days written notice to the record owners of the Property, as shown on the title information obtained by the City, and the last equalized assessment roll, the City Council of the City of La Quinta held a public hearing for the purpose of considering, and allowing the record owners of the Property a reasonable opportunity to appear and be heard on, all of the following matters: A. Whether the public interest and necessity require the Project; B. Whether the Project is planned or located in a manner that is most compatible with the greatest public good and the least private injury; C. Whether the Property proposed to be acquired is necessary for the Project; D. Whether the offer required by Government Code § 7267.2 has been made; and E. Whether the City has properly exercised all of its statutory responsibilities and duties antecedent to the legal exercise of eminent domain against the Property; and 119/015610-0008 567 7 468098.02 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 2 WHEREAS, the City Council has received various factual information bearing upon each of the matters referenced above, including but not limited to, the representations made within, and evidence attached to, the staff report prepared by staff for consideration in connection with the hearing; and WHEREAS, the City Council, as a result of such hearing, has determined that the public health, safety, and welfare require that the City acquire fee interest in the Property for the purposes of the widening of Jefferson Street; and WHEREAS, the Project was originally reviewed and approved under the California Environmental Quality Act ("CEQA") in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66; and WHEREAS, on August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements; and WHEREAS, on August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code; and WHEREAS, in considering the Resolution of Necessity, the City Council has considered the environmental information contained in the Addendum, along with information in the 1999 IS/MND; and WHEREAS, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003-059 reflecting such findings. WHEREAS, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development. 119/015610-0008 568 8 468098.02 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 3 WHEREAS, the City of La Quinta is authorized to acquire the Property for street improvement purposes under the authority of its own charter, and under the authority granted by Government Code Sections 37350.5 and 40404. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. The recitals set forth correct are true and correct and are adopted as the findings of the City Council. 2. The Project for which the acquisition of the Property is required is the Jefferson Street Improvement, Phase ll, Highway 111 to Indio Boulevard Project. The project will include the widening of Jefferson Street from two lanes generally to a six -lane, arterial highway, with a typical 120' cross-section. 3. The Property to be acquired is located within the City of La Quinta, County of Riverside, State of California, located at 46-175 Jefferson Street, in the City of La Quinta, bearing Assessor Parcel No. 649-071-013. The Property the City seeks to acquire consists of fee simple title to approximately 7,841 square feet of land, more specifically described in the legal description attached hereto as Exhibit "A". 4. The public interest and necessity require the Project, in that it is consistent with the City's General Plan, and specifically the City's Circulation Element. The City Council hereby adopts the finding set forth in Planning Commission Resolution 2003-059. Pursuant to the Coachella Valley Area Transportation Study, the Valley's population is one of the fastest growing areas in Southern California and expected to increase. This project is necessary to accommodate the projected growth and population increase and accommodate safe traffic movements. 5. The Project is located in a manner most compatible with the greatest public good and the least private injury, . in that the improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The proposed Project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including during flood events, and providing additional opportunities for wildlife movement and habitat access. The proposed Project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from roadway construction and operation of habitable structures. The Project is designed in a manner compatible with the greatest public 119/015610-0008 569 9 468098.02 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 4 good in that the Project will involve road widening so as to improve an important link between Highway 1 1 1 and 1-10. 6. The Property to be acquired is necessary for the Project, in that the Project is designed to relieve regional traffic congestion and improve the capacity of the street which will require continuity in the roadway alignment and traffic handling capacity of the streets. 7. Portions of the Property sought to be acquired include area outside of the proposed alignment of the Project's proposed roadway and public right-of-way improvements. Pursuant to Code of Civil Procedure sections 1240.410, the City Council finds that such property will be left in such size, shape, or condition to be of little market value, and this constitutes a remnant whose acquisition is authorized under the above -referenced statute. This remnant finding is supported by a petition submitted to the City through the course of project planning, requesting selection of the project design alternative which resulted in full acquisitions as currently planned for the Project. 8. The offer required by Government Code Section 7267.2 has been made to the owner of record, by way of a letter dated July 29, 2003. City staff has attempted to negotiate with the record owners and their representatives subsequent to the issuance of this offer, but the negotiations have not proved successful in securing the necessary property interests. 9. Notice of the resolution of necessity hearing was provided to the owners of record by way of mailed, written notice sent on December 29, 2003. 10. To the extent any of the Property to be taken herein is devoted to a public use, the City finds that the proposed use for the Property is compatible with, or more necessary to, such public use, and that the City is authorized to acquire the Property pursuant to Code of Civil Procedure Section 1240.510 and 1240.610. 11. The City Council hereby declares its intent to acquire fee simple ownership of the Property, more specifically described in Exhibit "A" hereto, in the City's name in accordance with the provisions of the laws of the State of California. 12. The Project has been reviewed and approved under CEQA through the 1999 IS/MND and the Addendum thereto. The City finds that as reflected in the Addendum, that there have been no subsequent changes with respect to the circumstances under which the Project is to be undertaken, no new information of substantial importance regarding significant effects or mitigation measures or alternatives which has become available, and no subsequent changes have been proposed in the Project which would require further environmental review. 119/015610-0008 570 10 468098.02 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 5 13. The law firm of Rutan & Tucker, LLP, City Attorney for the City of La Quinta ("City Attorney"), is hereby authorized and directed to prepare and prosecute in the name of the City such proceedings in a court having proper jurisdiction thereof, as may be necessary for the acquisition of the Property described herein, including without limitation, seeking prejudgment possession of such Property, and to prepare and file such pleadings, documents, and otherwise prosecute such actions as may be necessary in the opinion of the City Attorney to acquire the Property for the City. Such attorneys are specifically authorized to take whatever steps and/or procedures as are available to them under the Eminent Domain Law of the State of California, relating to acquisition of the Property. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3rd day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD 0. ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 119/015610-0008 571 11 468098.02 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 6 EXHIBIT "A" The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 22 of Tract No. 2190, in the City of La Quinta, County of Riverside, State of California, As Per Map Recorded in Book 41, Pages 55 through 57, Inclusive of Maps in the Office of the County Recorder of Said County. APN 649-071-013 119/015610-0008 5 7 2) 12 468098.02 a01/28/04 • ATTACHMENT 1. . fG�`I,rGv P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 July 29, 2003 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. and Mrs. Eugene Feack 46175 Jefferson Street La Quinta, California 92253 Re: Offer to Acquire Property Located at 46175 Jefferson Street, Riverside County Assessor Parcel No. APN 649-071-013 Dear Mr. and Mrs. Feack: The City of La Quinta (the "City") is proposing the construction of a widening and improvement of Jefferson Street, within the City. The City understands you are the vested owners of the above -referenced property. The City seeks to acquire the fee simple interest in the property, more particularly described as 46175 Jefferson Street, Riverside County Assessor Parcel No. APN 649-071-013 as shown on map attached hereto as Attachment 'W', which is made part of this offer by reference (the ' Property's. This letter contains an offer by the City to acquire the Property, and the terms and conditions on which it proposes to do so. No final determination has been made at this point by the City as to the ownership of the Property. The City is in the process of securing information from a title company which will assist in determining exactly who the current owners are, and what other persons or entities may have lease, financing, or other interests in the property. Any acceptance of this offer is contingent upon your presentation to the City of conclusive evidence that all parties with interests in the Property (including, but not limited to, lessees, licensees, lienholders, etc.) have accepted this offer, and agreed on how the proceeds for the acquisition of the Property shall be distributed. The City had the Property appraised to determine its fair market value. The appraisal was conducted by Mr. Michael Scarcella, MAI, of Capital Realty Analysts, in accordance with commonly accepted appraisal standards, and included consideration of the highest and best use of the land. Mr. Scarcella previously corresponded with you, offering to meet with you on his inspection of the Property, and inviting you to provide information regarding the Property. Based on the appraisal, the City offers to purchase the Property (free and clear of any 119/015610.0008 �� 419354.01 a07/29/03 13 5 7 Mr. and Mrs. Eugene Feack July 29, 2003 Page 2 encumbrances to title such as liens, leases, licenses, or other interests which, in the City's discretion, are unacceptable) for TWO HUNDRED SIXTY-EIGHT THOUSAND DOLLARS ($268,000.00) (the "Purchase Price"). The basis for this offer is explained more thoroughly in Attachment B of this letter. Attachment "B" is a copy of the appraisal report prepared by Mr. Scarcella, containing the data and pertinent discussion relative to how he determined the fair market value of the Property. It is made a part of this offer by. reference. This offer is for conveyance to the City of a fee interest in the Property, excluding any oil, gas, or mineral rights below the depth of 500 feet, and subject to terms and conditions set out below. Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes, except: 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue of Taxation Code, if unpaid at the time escrow closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property, as determined by the City; 3. Easements of rights -of -way over the land for public or quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report or litigation guarantee, which are accepted by the City in writing through escrow. It shall be your responsibility to convey clear title, and to pay any fees or charges. by lenders or other parties in obtaining reconveyances or other items necessary to convey clear title. As a condition of this offer, the City reserves all rights and remedies it may have against you, and all prior owners, to seek damages or other remedies in connection with any remediation or other obligation the City incurs as a result of any contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. Sub -Section 9601 et seq.), the Hazardous Waste Control Law, California Health & Safety Code (Section 25100, et seq.) the Porter Cologne Act (California Water Code Section 13000 et seq.) California Health & Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. In addition, any final transfer of the property, and payment of the purchase price, will be conditioned on the City's filing of a Notice of Determination with the County Clerk approving an Addendum to the Initial Study/Mitigation Negative Declaration for the Jefferson Street Improvements, at least thirty-five (35) days prior to close, and no judicial or administrative challenges having been presented or filed against the findings made therein as of the date of closing. The City will pay all escrow and recording fees incurred in the purchase of the Property, and if title insurance is obtained, the premium charge for such title insurance. 119/015610-MOB .� 419354.01 a07/29/03 574 Mr. and Mrs. Eugene Feack July 29, 2003 Page 3 Please be advised that the amount paid to you pursuant to this offer, if it is accepted, may be eligible for favorable tax treatment under Internal Revenue Code Section 1033, relating to acquisitions under "threat of condemnation," providing you purchase qualified replacement property within the time periods set forth under law. The IRS has literature explaining the details of this favorable tax treatment, which you may wish to consult. In addition, Section 2(a) of Article XIIIA of the California Constitution and Section 68 of the California Revenue and Taxation Code generally provide that property tax relief shall be granted to any real property owner who acquires comparable replacement property after having been displaced by governmental acquisition or eminent domain proceedings. The State Board of Equalization has prepared guidelines on those matters, which you also may wish to consult. Please contact our relocation consultants, Bob Stoddard or Kathy Woolley, at (760) 772-4255, if you would like any assistance in obtaining materials from the IRS or the State Board of Equalization on these matters. Please note that effective August 1, 2003, the new telephone number for these consultants will be (760) 776-1238. In addition to the compensation for the fair market value of the property, you may also be entitled to relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title 25), or local relocation guidelines. Relocation assistance is not a part of this offer. If you would like to inquire further regarding your eligibility for relocation assistance, please contact Bob Stoddard or Kathy Woolley, at the number listed above. Please be advised that California Code of Civil Procedure Section 1263.510 allows a party whose property is subject to public acquisition to claim compensation for loss of business goodwill. The Property does not appear to be the site of any presently operating business. As such, this offer does not reflect any amount of compensation attributable to any loss of business goodwill. If you believe loss of business goodwill should be considered by the City in connection with the proposed acquisition of the Property, attached to this letter is a "Notification of Right to Claim Loss of Business Goodwill," a "Claim for Loss of Business Goodwill," and a "Loss of Business Goodwill" questionnaire. These materials explain in further detail the provisions of Code of Civil Procedure Section 1263.510, and explain what the owner of a business must prove in order to be compensated for business goodwill losses. If you wish to make a claim for loss of goodwill, the City requests that you review and complete the forms attached. Please let us know as soon as possible if the City's offer is acceptable. This offer shall expire if it is not accepted on or before one hundred and twenty (120) days from the date it has been mailed to you. If this offer is acceptable to you, please so indicate to the undersigned, in writing. Upon receipt of your written acceptance, a Purchase and Sale Agreement incorporating the terms of this offer, and containing further escrow instructions regarding review and elimination of exceptions to title, will be forwarded to you for signature. Upon receipt of a signed Purchase and Sale Agreement, the matter will be reviewed by City Council, which has 119/015610-0008 419354.01 a07/29/03 15 575 75 Mr. and Mrs. Eugene Feack July 29, 2003 Page 4 final approval authority. If the deal is approved by the City Council, escrow will be opened immediately. The City generally uses First American Title Company to handle escrows, and proposes this company handle any escrow here. The City is, of course, willing to consider other escrow companies, if you so desire. .If for any reason you are not satisfied with this offer of just compensation, and have relevant information regarding the value of the Property that you would like the City to consider, it will be happy to do so. If you have such information, please contact me immediately and I will make arrangements to have the information reviewed and considered. If you have any questions regarding this offer, or wish to request any additional information, you may contact Kathy Woolley or Bob Stoddard at the above numbers. Please note that the City has made no decision to exercise its power of eminent domain to acquire the Property, and can only do so after it holds a hearing at which the affected property owner(s) have had an opportunity to appear and be heard. The City much prefers to accomplish its property acquisitions by way of negotiated transactions, and toward the end of doing so with respect to this Property, would be more than willing to meet with you to discuss this offer, or any related matter. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the Attachments, and all matters stated herein are made under the provisions of Evidence Code §§ 1152 and 1154, and shall not be admissible in evidence in any proceeding which may be instituted relating to the acquisition of the Property, or in any other action. We hope this offer meets with your approval. As stated, our relocation and acquisition consultants, Bob Stoddard or Kathy Woolley, will be happy to meet with. you to discuss the Property, the offer, or any related matter, and will attempt to contact you soon. If you need additional information, please call me at the number referenced above. Thank you. Very truly yours, C ;OFLAQ AKrine Jenson, C' AttorneyCity oa Quinta 419354.01 aO77/29/03 16 576 Site Analysis Subject Plat Map APN 649-07, Riverside County, CA I ,WIEMbI' cwfp � , a 8Q i� WON AND O O O w �rO O I �.• � Ol/I�C i a B � M N ® �M N1dN R ® � \ ae • 0 � �t M t N h a .. AAA� . A AWO 1!� I •NrT ' + O I A I1111111100� � 111111111�9 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS A Complete Appraisal Presented in A Summary Report Of The Prospective Taking Of Several Improved and Unimproved Land Parcels, Located Along The East and West Sides Of Jefferson Street; La Quinta, CA. 92253 Otherwise Known As APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta, Riverside County, CA. Date Of Appraisal June 20, 2003 Effective Date of Valuation June 10, 2003 Job Reference No. 03-1097 For The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calie Tampico La Quinta, CA 92253 By CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 18 578 Table of Contents TABLEOF CONTENTS .». ----- »....».......»...»....».».»».....»......»»..».......... .....».».» ...».»» 4 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS ».»...»......»»..-.».».»».».-»»»»»»»..»» 6 ........................................ SATELLITE PHOTO (TAKEN IN 2000) ......... ... .... ...............: ........:.... ...................10 I 1 / HISTORY OF THE SUBJECT .......................................................... ................................... INTRODUCTION 12 PURPOSEOF THE APPRAISAL.................................................................................................................... FUNCTIONOF THE APPRAISAL...................................................................................................I...............12 12 PROPERTY RIGHTS APPRAISED................................................................................................................. 13 DEFINITIONOF MARKET VALUE............................................................................................................... 13 DEFINITION OF EMINENT DOMAIN............................................................................................................ 13 DEFINITION OF CONDEMNATION............................................................................................................... 13 DEFINITIONOF EASEMENT...................................................................................................................... 13 DEFINITIONOF DAMAGES...................................................................................................................... 13 DEFINITIONOF BENEFITS..................................................................................... ................................ 14 BUNDLEOF RIGHTS THEORY................:................................................................................................... 14 BEFOREAND AFTER RULE:....................................................................................................................... 14 SCOPEOF THE APPRAISAL........................................................................................................................ 15 DATEOF VALUATION..................................................................................... 15 LEGALDESCRIPTION......................................................................................................................».. 16 ASSESSMENT& TAXATION..................................................................... ................................................ REGIONALANALYSIS .... ».........»..».».»......»»....»»..»..»»..» ............. »..........».».........»..»».».........17 CITY ANALYSIS, LA QUINTA, CA»...»»».......»...»....».......».».....»....»..»..» .»...•»..».•...»»..«.»---... 22 NEIGHBORHOOD - MARKET ANALYSIS ..... ».».... ».»».»....... ».............. »............... »..... ...».»»»».... SITEANALYSIS»»».......».........»...»...».».... .... »...... ...... ».......... »... ».... ...»»... »..................»...................31 HIGHEST AND BEST USE ANALYSIS ......... »...»..»... »............. ».»........... .».....»..»...:....»»»».»».»».» 41 . APPRAISALPROCESS »..»...».....»......... ».»..»... »..... ...»......... ........ ».... ».... »»....»..».....»..............»44 SALESCOMPARISON APPROACH . ..................................... ».......».......................................».......... 46 LILLEY: 649-071-008 & 029.......... ».... ».... ...».....»..... ».......................... »................... .........»»».......».»» 50 WAH 649-071-009....»....»...».»....».........».».».... ...»....... ».».».......... ...».»................. ........»...»»».....».....» S4 PETERSON: 649-071-011»..».......... »........... »........... ».....»..»...,...... »......... »........... ........ »....».-..»...... 60 WAGGONER: 649-071-012..».... ...... »...................... »......................... »...................... ............ ».»....».»... 66 73 FEACK: 649-071-013........ .......... ».......................................... »......................................... ...........»».....- 79 ELROD: 649-090-007».... »......... ....... »...... »... »......... »................................................ »»...... »».... ....»».. 83 NIKOLICH: 649-071-015»»...... ................. .... ..... »............................................ ....»..... ........... .........»» ROLLAND: 649-071-016............................... »................. » ........................................... ........ ..... »....».... 89 KRAKOFF: 649-071-017.......................................................................................................................».. 95 (4) CAPITAL KEALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 579 19 REYNOLDS: 649-071-018...w.......... N....».........»...........»..»..»».».»..........»».».»........................»»......» 101 ASTORGA: 649-071-019»..».....»..»....»-.».»»»...........»»......»»...'»"'.'»'.»"'.»."..".`...N..".'..».w...........» 107 LILLEY: 649-071-020...... »N....w.w..N..».....».N....»Nw..».....N»»..».N..N..............w..».....N»w».Nw.».wN.«ww 113. LILLEY: 649-071-021.»..»N»N..w».........................N.......w....N......w....»N.».»..»...NN...»..Nw»N» 117 .... MILLS: 649-090-001......N..w..NN.»........»..»w...»w».....w»...»....w».NwN.N....,».w 121 CULP: 649-090-002 N.»».N.»w......»...w........»...NwN..N.......................N.».....N........»......N.................N.127 RACKIE: 649-090-003 ..........w..NNw»...N.wNw»N.N..N»...».N.»...N..».....»..N.....w.w....». 133 139 WALDO: 649-090-004 .NM.wNNN.NNwN.....NNN.NNN.NNw.N.NNN.ww.N.N.N....N.NN.NNNN...NNN.N.N.w.N....N..NM. HALL: 649-090-005 145 ....»...NN.Nw».N...»..».ww...»».».»w..»N.N»..N».....».»»...»..».»NN»NN RODRIGUEZ:649-090-006»..NN.»N.».»NN.N.N....»»»N.N».ww..N.w..»N...Nw.»N».»»»..»..»••»wN»NN.149 ZILINSKY: 649-090-007N.N».»wN»N..».NN».w..N................»»N.....N.».....»....»..»..»w.N.N..N....»w.»..w....» 155 STEDING: 649-090-008»N.».....»».»....»»».».».»N.»N...w..»»N.....».....'.....N'....'.'"..w'....'...'...N'.w..'.....»..159 ALEXANDER: 649-090-009....... » .N....»»...N.........wN.».....w...........w...w......»»w........... .....N......ww 165 HENDERSON: 649-141-001»..»»...N..........»..w.....................».......wN.N.».»..».»....»..».......».NN».N........171 CERTIFICATI011Tw......»....N........w..»»».NN».»......w..»»». w....N..N.....»N..... ....N.w.....N.»».177 ASSUMPTIONS AND LIMITING CONDITIONS .N.......... N... ».. w.....Nw....»....w---- ....................179 CAPITAL REALTY ANALYSTS REAL ESTATE A."RAism • ANALYSTS • ADVISORS 20 580 Summary of Important Facts and Conclusions Client: The City of La Quinta Attn: Mr. Tim Jonasson 78495 Calle Tampico La Quinta, CA 92253 Intended Users: The Client Property Type: Single family homes, vacant single family home lots, and a parking lot / putting green area Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Thomas Brothers Guide Reference: Census Tract Number: Type Of Report: Report Format: Tract 452.05 Complete Summary (6) CAPITAL REALTY ANALYSTS REAL ESTATE Amman • ANALYSTS • ADvIsm 21 581 Summa of Important Facts and Conclusions Purpose of the The purpose of this appraisal is to estimate the just Appraisal: compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Appraisal: Date of Valuation: Eminent Domain June 10, 2003 Date of Appraisal: June 20, 2003 Owner of Record: Preliminary Title Reports were not submitted or examined. According to public records, title to the subject parcels is vested as follows: 2 649-071-009 Ellis & Helen Wah 46055 Jefferson Street 3 649-071-010 Indian Springs Land Cc 4 649-071-011 David F. & Patricia L. Peterson 46115 Jefferson Street 5 649-071-012 Bill & Suzie Waggoner 46145 Jefferson Street 6 649-071-013 Eugene T. & Carol A. Feack 46175 Jefferson Street 7 649-071-014 David A. & Carol A. Elrod WA 8 649-071-015 Milan & Milo Nikolich 46235 Jefferson Street 9 649-071-016 Patsy Rolland 46305 Jefferson Street 10 649-071-017 Sheila A. Krakoff 46335 Jefferson Street 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 12 649-071-019 Ronald Astorga 46425 Jefferson Street 13 649-071-020 Jeff L. & Patricia C. LiUey WA 14 649-071-021 Jeff L. & Patricia C. LUley WA 15 649-071-029 Jeff L. & Patricia C. Lilley WA 16 649-090-001 Harvey A. & Audrey R. Mills 46170 Jefferson Street 17 649.090-002 Elaine L. & Robert L. Culp 46200 Jefferson Street 18 649-090-003 Emma Ra" 46250 Jefferson Street 19 649-090-004 Edward E. & Marie A. Waldo 462W Jefferson Street 20 649-090-005 William Hall WA 21 649-090-006 Mirta Rodriguez 46390 Jefferson Street 22 649-090-007 Charles J. & Alice S. Zilinsky WA 23 6494=-008 Sue F. Steding 46450 Jefferson Street 24 649.090-009 John D. & Jacy P. Alexander 46460 Jefferson Street 25 649-141-001 Leonard C. & Margaret R. Henderson 80020 vista Grande (7) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 22 582 Summary of Important Facts and Conclusions Site: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels are as follows: 1 649.071-UM 2 649-071-M JO11 V a -- Ellis 8 Helen Wah. 46055 Jerterson.SUM 9,583 3 649-071-010 4 649471-011 Indian Springs Land Co David F. & Parries L. Peterson NIA 46115 Jefferson Street 11,326 8 649-071-012 Sul & Suzie waggoner 46145 Jefferson Street 7.841 6 649-071-013 Eugene T. 3 Carol A. Feack 46175 Jefferson Street .. 7.� 1 7 649-071-014 David A. & Carol A. Elrod Milan 3 Mb NikaNeh 48235 Jslf IA SbNt 7,841 8 649-071-015 9 649-071.017 Patsy 46235 Jefferson Street 7.841 10 649-071-018 Kand A. Sods A ko8 46335 Jefferson Street 7A41 11 649-071-018 Timothy Reynolds 46395 JMerson Street 7A41 12 649-071-019 d Ronald �� 46425 Jefferson Street 10.454 5.663 13 649-071-020 Jeff L. 3 Patrks C. May NIA. NIA 8.712 14 649-071-021 Jeff L. & Patricia C. LYley NIA 1,742 15 649-071-029 Jeff L. 8. Patricia C. LNley Harvey A. & Audrey R. Mills 46170 Jefferson Strait 7.841 18 649-090-001 17 649.090-002 Elaine L. & Robed L. Culp 46200 Jefferson StfW 7A41 1e e494M-003 Emma Rackis 46250 Jefferson Strest 7.841 19 649-090-004 Edward E. 3 Mars A. Waldo 46280 Jerson Strsst 7.841 1 20 649490-M William Hal Mine Rodriguez WA 46390 Jefferson Street .6 7,841 21 6494)90408 22 649.090-007 Charles J. & Aka S. ZOInskY NIA 7A41 23 6494)90.008 Sue F. Ssdi ng 46450 Jefferson SUM Street 7.841 9,148 24 649-090-009 28 649-141.001 John D. & Jacy P. Alexander Leonard C. 3 Margaret R. Henderson 46480 Jefferson 80020 vista Grande 10.454 improvements: 17 of the subject parcels are improved with single family homes. The remaining 8 parcels are vacant. Zoning: According to the City of La Quinta Zoning Map, all of the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning is likely as of the date of value. Highest And Best Use, Hold for investment "As Vacant": Highest And Best Use, "As Improved": Property Rights Appraised Remain as improved Fee Simple Estate (8) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 23 583 Summary of Imaortant Facts and Conclusions Final Estimate Of Just I. MN a nz Compensation: 2 64I.07;-00I aft aMvanwah WA 4IOeeJOWwnSW" Non `"` "•" 2 " W1-010 4 6"14"1 IMae WW LWW CD D&M f. 6 Psb L Peow WA 46115 JIenI6e fllat iFlt 11,3i6 I e460714112 SE 6 Suba Waggorw EwWw T. 6 Card A. Few* 4e145 Jae"son S"d 46175 Jaeuaon SO" SM SPR 7JN1 649WI413 7 M6W 1-014 Darfd A 6 Cnol A EMod WA $b" 1 SPR 7JN1 7JN1 1646-071-01s 64"71A» MM 6 MGM N010" Pary ft wd 46226 Jae"aon 400 jeuanon 5"M SPR 7JM1 10 MP071-017 10M6W1J>t6 Shut A Kr" 4m i6fta n ibal -006 WR am 7JM1 7,M1. TYao6yKRaynoft 46425 JaaeanonEaaal eoson.Sbd 1SAM 12 646W1-0tI 12 ML071-020 RdMtl Adorya Jan L 6 Hrk" C. t"aY WA or Non NM b e62 146WW1�21 JWL6PO C.LMY NSA WA NeOrve ,7 1,742 2 W tI 44 1.@I . 1I 040- D1 Jae L 6 PaYfd6 C. MY Nway A 6 Maby R. Mw 46170 Jeff~ 8"d SM 41 17 61Y660002 Eww L. 6 Ro0"1 L C * MW JM"aon:b" 4e250 Jaeanoo Ebd SM SM TA 7J41 1I 6494w4 5 » 6100e0a" . wEmma Rookie A MB Ed d E 6 MnM WO 48M Joe~ so" SFR Non 701 TA41 20 646CI0006 21 M9401), 6 Wlfam Nal MWY PAd%M WA 462I0 Joe~ Mad SM 7JN1 22 649410-M ChWW J. 6 Ake & 2"nky WA Ebd Non SM 7J41 TA41 22 0494W4 I 2649.14i4 a Sw F. 360M JJohnD. 6 JUY P. A 464%Jdl"aon eow so"vim 10A04 26 616.14/-001 Lwird C. 6 Magr" It MM mom �� SG Personal Property: $0 (9) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSEes a ANALYSTS a ADVam 24 584 I �t � ld� � � ��r •�'� I. _i zi.l � � � � �� 1'"y�^9r��f,�s�p�/,/Q/ tc �� s,yt<vII -_ _ a i iY� • � � Y'� it �I Ir t .'► :'% r VI•�G'.�l i.t 1� �� r c� � � s `l'.i� �!F'i 7Y� , ,f• � '''} i'. �v ti• 15` I.:J �Ir+t �' Iq 1��41�`r 4 } �`.i. P .1.,1�� .��yr�A, .`i'4,��; '�,� _„- 1. I(....Syf a "� fi '"'.�1.'� Iti.--`j � TJ • .�.. � / , r C, �� .�fi � � � � �i �Ci k� •.� � e. 61,`(,/ t .yq A,:� Sew �'i ,l �� .- °, 1 � fIfl.'v`f ,.�/ . ti_ _-ic �e.:� �• Introduction / History of the Subject The subject property includes 25 separate legal parcels, located along the east and west sides of Jefferson Street, south of Westward Ho Drive, in La Quinta, CA. All of the parcels except 1 have frontage on the Indian Springs Golf Course. The history of the Indian Springs Country Club is ,described in the following sections: The property was originally developed with an 18-hole golf course and some residential homes in the early 1960's. Several of the subject homes were. ..developed in the 1960's. In January 1984, One Hundred and Thirteen Corporation acquired the project for $1,595,000. One.. Hundred and Thirteen Corporation subsequently. acquired additional parcels, which made up the bulk of what is now the existing Indian Springs site. The golf course was reportedly not managed or maintained up to market standardsunder the One Hundred and Thirteen Corporation ownership. The facility had a poor reputation and reportedly performed well below market standards. One Hundred and Thirteen Corporation subsequently defaulted on a trust deed, and the property reverted to Diamond Benefits Life Insurance Company (In Receivership) on November 1, 1992.. A lease agreement for the golf course and related facilities and equipment was. executed on September 29, 1994. The lessee made some improvements to the golf course., and the golf facilities began operating at near market standards for the courses' market niche, which was at the lower end of the spectrum. In early 1998, the Diamond Benefits Indian Springs holding was placed in escrow by Indian Springs Land Co'., LLC. Indian Springs Land Co., -LLC is an affiliate of Mr. Roger Snellenberger, an active subdivision developer, with several projects fully developed and absorbed in the Coachella Valley market. The escrow price was $6,353,000 (it was $8M prior to the school site sale described below). During the escrow period in 1998, Diamond Benefits sold approximately 36.5 acres of land at -the SEC of Miles Avenue and Dune Palms Road to the local school district. The sale price was $1,647,000, or $45,123 per acre. In order to make up the lost land area, the developer acquired APN's 604-062-008 and 009. Both parcels sold on 5/14/99 for $200,500 each, or approximately $42k per acre. The Diamond Benefits acquisition was completed on 1/20/00. The sale price was $6,353,000, inclusive of the golf course. Additionally, the developer (and/or related entities) acquired a :contiguous 40-acre parcel located on the SEC of Miles Avenue and Jefferson Street for $1,520,000, or $38,000 per. acre. The closing date was 6/6/00. The assemblage was completed with the acquisition of a 12.5-acre parcel on 6/9/00 for $433,000, or $34,640 per acre. (11) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 26 586 Introduction / History of the Subject Property (cont'd) Currently, the developer has developed the bulk of the remaining lots located on the east side of Jefferson Street. The absorption rate for the project has been among the strongest in the region, as the units have attained excellent market acceptance. Alternatively, the subject parcels have not traded actively over the past several years. The reason is that Jefferson Street is a major arterial, that bottlenecks at the area of the subject, where the street becomes 1-lane in each direction. In fact, during my physical inspection, several of the homeowners indicated• that they felt that the combination of street noise and the high traffic count have been. detrimental influences. The fact that 6 of 24 residential lots in this area remain undeveloped after over 4 decades subsequent to their subdivision clearly supports the lack of demand and viability for single family homes on Jefferson Street in this particular area. However, the lots back to the Indian Springs Golf Course, which does provide good view elements to the subject homes. The southern end of the subject area abuts the Whitewater River, a large regional drainage escarpment. Thishtdr the ovation ohlly . floods, ewat clRiing Jefferson Street to through traffic. In g and the configuration of Jefferson Street, the City of La Quinta is currently exploring the possibility of acquiring the subject parcels in order to widen Jefferson Street and construct and bridge over the Wash. The potential taking generated the requirement for this analysis. Purpose of the Appraisal The purpose of this appraisal is to estimate the just compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Appraisal Eminent Domain Property Rights Appraised The property rights appraised are those of the Fee Simple Estate. The definition of Fee Simple Estate for this appraisal is as follows; Definition of Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."' '(The Oicbonary of Real Estate Appraisal 3rd Edition Appraisal Institute Chicago Illinois, Page 140.) (12) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS ANALYSTS • ADVISORS 27 J87 Definition of Market Value The definition of Market Value for this Appraisal is as follows: A. The market value of the property taken is the highest price on the date of valuation that would be agreed to by seller, being willing to sell but being. under no particular necessity for so doing, or obligated t no ell,and buyer, being ready, willing and able to buy, particular, necessity for so doing, each dealing with the other with the full knowledge of all the uses and purposes for "which the property is reasonably adaptable in a buyable period. B. The fair market value of the property taken for which there is no relevant market is its value on the date of valuation as determined by any valuation that is just and equitable. (Source: Califomia Code of Civil Procedure, Title 7, Chapter 9, Article 4, Paragraph 1263.320) Definition of Eminent Domain "The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution; also known as "the taking clause" guarantees payment of just compensation upon appropriation of private property. Definition of Condemnation "The act or process of enforcing the right of eminent domain."' Definition of Easement " An interest in real property that conveys use, but notownership, of a portion of be acquired by an owner's property. Access or right-of-way easements may private parties or public utilities. Governments dedicate conservation, open space and .preservation easements."4 Definition of Damages rocedure S California Code of Civil Pection 1263.420. Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following: (a) The severance of the remainder from the part taken. s taken in the (b) The construction and use of the project for. which the property i manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken. :,.a.sr.. Of Real Eshate ADDIa64lI, Chicago, IL, Page 116 a Chicago, II., Pape 71 (13) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS Definition of Benefits the remainder. is California Code of Civil Procedure Section on 30. Benefit roject for which the the benefit, if any, caused by the construction and use of the project proposed by the plaintiff whether or not the property is taken in the manner benefit is caused by a portion of the project located on the part taken. Bundle of Rights Theory The concept that compares property ownership to a bundle of sticks with e{ he ch stick r epresenting a d istinct a nd s eparate r ight of t he p roperty owner, e.g. right to use real estate, to sell it, to lease it, .to give it away, or to choose to exercise all or none of the rights. Before and After Rule a procedure often referred to as the Federal Rule; In eminent domain valuation, in which just compensation is measured as the al erence of the between remain t e after the value of the entire property before the taking and the taking. I have applied the State Rule to appraise the subject taking. There are nine procedural steps to be followed, as shown below: 1. Value Before Taking 2. Fair Market Value of Part Taken as Part of the Whole 3. Remainder Value Before the Take 4. Remainder Value After the Take 5. Damages to the Remainder 6. Benefits to the Remainder 7. Net Damage to the Remainder Note that all of the proposed takings are for a 100% fee estate. Consequently, there will be no remainder parcels, easements,. he whole,s, or benefits; and consequently, just ugh the State Rule is applied, the part take compensation is for a 100% fee estate in each parcel. Scope of the Appraisal n This Appraisal Report is intended to be an "appraisal assignment," Appraisal Institute. It as defined in the Standards of Professional Appraisal Practice of the is my intent that the appraisal service be performed in such a manner that the results of the analysis, opinion or conclusion be that of deemed disinterested tpertinent to pathe Additionally, it is my intent that all appropriate data solution of the appraisal problem be collected, confirmed and reported in conformity with the Standards of Professional Appraisal The scopece and of the the analys s is Professional Ethics of the Appraisal Institute. Praisal roblem. intended to be appropriate in relation to the significance of the app p (14) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 29 589 Scope of the Appraisal. (cont'd) Lacking improvements with an associated cost and /or income earning potential, the Cost Approach and the Income Approach are excluded for the valuation of the vacant parcels. The Sales Comparison Approach is applied exclusively for the vacant parcels. In terms of the improved parcels, both a Cost Approach and a Sales Comparison Approach are applied. The Income Approach is excluded as there is a lack of rental data in the area. Although ItWas not provided. subject-parcels Appraiser se currently leased, a copy of the lease agreement interviewed market participants including buyers, sellers, developers, real estate brokers and lenders in the subject market and competing areas during the collection and confirmation of data for this assignment. Date of Valuation June 10, 2003 Date of Appraisal June 20, 2003 Legal Description The legal description for the subject property is as follows: 1 649-071-008 .20 Acres M/L in Lot 17 MB 041 MOO I K n nu Portion of Lot 19 and Lot 18 MB 041/055 TR 2190 2 649-071-009 3 649-071-010 Portion of Lot 19 MB 041/055 TR 2190 4 649-071-011 Portion of Lot 19 and Lot 20 MB 041/055 TR 2190 5 649-071-012 Lot 21 MB 041/055 TR 2190 6 649-071-013 Lot 22 MB 041/055 TR 2190 7 649-071-014 Lot 23 MB 041/055 TR 2190 8 649-071-015 Lot 24 MB 041/055 TR 2190 9 649-071-016 Lot 25 MB 041/055 TR 2190 10 649-071-017 Lot 26 MB 041/055 TR 2190 11 649-071-018 Lot 27 MB 041/055 TR 2190 12 649-071-019 .24 Acres M/L in POR Lot 29 and Lot 28 MB 041/055 TR 2190 13 649-071-020 .13 Acres M/L in Lot 29 MB 041/055 TR 2190 14 649-071-021 Lot 30 MB 041/055 TR 2190 15 649-071-029 .04 Acres M/L in POR Lot 18 MB 041/055 TR 2190 16 649-090-001 'Lot 39 MB 041/055 TR 2190 17 649-090-002 Lot 38 MB 041/055 TR 2190 18 649-090-003 Lot 35 MB 041/055 TR 2190 19 649-090-004 Lot 36 MB 041/055 TR 2190 20 649-09.0-005 William Hall 21 649-090-006 Lot 34 MB 041/055 TR 2190 22 649-090-007 Lot 33 MB 041/055 TR 2190 23 649-090-008 Lot 32 MB 041/055 TR 2190 24 649-090-009 Lot 31 MB 041/055 TR 2190 25 649-141-001 Lot 1 MB 057/007 TR 3505 (1 5) CAPITAL REALTY ANALYSTS REAL ESTATE Apmmsw • ANALYSTS • Ammon 30 590 Assessment & Taxation Consistent with code sections pertaining to eminent domain, assessed value has not been used as a basis for valuation. Easements and Encumbrances A Preliminary Title Report for the subject parcels was not -submitted or examined. - The subject is being appraised as though there are no atypical easements and/or. encumbrances that may have a negative impact on the prospective market value or marketability of the subject. The appraiser reserves the right to modify any data or value estimates contained in this analysis after inspecting Preliminary Title Reports for the subject parcels. (16) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 31 591 Regional Analysis Regional Map Dowd Hd Xb"1111a 7 reR Yyib N[Nnha, iYtl.l 111)1)Il 02 I.R. WAS NodhPeMte Jo!IINIaIlseItalilnlull'urk ygkJel imse B'd VVeter �1 DllorlRd ISMoe� $P► Hato Weifir` F :.. `. t 11 wash F. Was►+inglon WasbThoLOWO Ptrie swkwq Pill Ia1l.aaw� Son JsCinle MAderness �o (. ? A' L F O R N t Ji Subject coltonweod > osA 1 1 , SPh. core - i ; - VNIte1 GMNa YeYalYk VMe Vila !,.W1w1d Rancho' z, War 'i .Fred WMIn9. a 74 PeMn Dow.01 . 1w . 111 �..�.. iio Cedus GMY San nernardklo Halknnal f4wolt, � 74 11.8 QHMMa ;Thetlnd 1tMMli.•11U1aaM„. 7Ae,mal Ahp j MI11(NRWI, �i ji (7�tY AS? Mscos Santo 1 ROSo Ilt x,4+1•l ,b 111 i.lt. • C ahuiNa I,R. R91 371 SOW Sea Eeach Regional Demographic Snapshot Coachella Desert Hot Springs Indian Wells Indio La Quints' Palm Desert Palm Springs Rancho Mirage Unincorporated Total Mean ulation Household Inc. Housing Val. 441650 $ 40,014 $ 113,200 23,950 $ 30,058 $ 68,400 17,000 $ 26,782 $ 74,100 4,020 $ 113,851 $ 372,900 51,500 $ 33,629 $ 83,600 26,300 $ 51,231 $ 117,400 42,350 $ 48,309 $ 172,600 43,806 $ 35,651 $ 141,200 13,900 $ 58,341 $ 252,500 64,262 $ 41,741 $ 98,000 331,732 33,173 $ 41,741 $ 126,200 ►ge Force 31.3 19,460 23.0 9,120 30.2 6.540 60.2 N/A 26.2 21,701 31.0 7,480 41.9 15,940 43.9 25,820 58.8 N/A 35.0 N/A 35.0 N/A 14.40% 6.70% 2.90% 9.10% 5.60% 3.80% 5.00% 3.20% 6.50% N/A CAPITAL REALTY ANALYSTS REAL Esi*ATF APPRAISERS a ANALYSIS a AowsoRs 32 5 92 Regional Analysis Population The following chart shows the growth pattern of the regional area since 1980; 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 --♦-- Population Power (Population) In addition to the permanent population of 331,732 on 1/1/01, there is an estimated 124,000 seasonal residents from January through May. Among the incorporated cities, the following chart depicts population. rates since 1980: 1900 1090 ;='I &%M& III cathedral City ■ coaanella O Desert Mot Springs a Indian Weil ■ Indio ■ La Quints ■ Pakn Desert D Pokn Springs ■ Rancho Mirage The following table shows the same data expressed in terms of growth rate percentages since 1990; 1"0.2001 0.00% 20.00% 40.00% 60.00% BU.UU A -1w.uv7. "w.w n 1+.,..10'iz. ■ Rancho Mirage O Palm Springs ■ Palm Desert ■ La Quints ■ Indio 0Indian Well O Desert Hot Springs ■Coachell ■ Cathedral CKY As shown, La Quinta is leading the region in terms of population growth. Indio passed Palm Springs as the largest city in the regional area, and Palm Springs has had the least growth over the past 10 years. (18) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 33 593 Regional Analysis Population (cont'd) The total permanent population of the Coachella Valley is projected to, be 372,000 in 2005, 422,000 in 2010 and 473,000 by 2015. Economy Historically, the regional economy developed around tourism in the western portion o f t he r egion, and a griculture i n t he a astern p ortion o f the r egion. T he tourism, construction and agricultural industries continue to drive the economy of the region. The following table shows regional employment by sector; ® Manufacturing ■ Utilities I Transportation O Government / Schools O Construction ■ Finance ®Agriculture ■ Tourism O Retail ■ Services Employment in terms of regional economic conditions, hotel room sales are an important indicator as the tourism and services segments make up the largest employment base. As shown in the table below, regional hotel room sales trending down in 2001, after encountering a strong increase through the 90's. Regional Hotel Room Sales 400 350 300 250 200 150 100 50 0 - 0 Room Sales (millions) Power (Room Sales (millions)) in terms of.construction activity, 2002 had $1.13 billion in permit activity, which was the 2 highest year ever in permit valuation. The following table shows a Building Permit Valuation comparison: (19) CAPITAL REALTY ANALYSTS REA1. ESTATE APPRAISERS t ANALYSTS • ADVISORS 34 594 Regional Analysis Economy (cont'd) Regional Building Permits By Property Type -•- Residential —f— Multi -Family Commercial 92 93 94 95 96 97 98 99 0 1 2 Year Assessed values in the regional area had been flat from 1992-1997. Total assessed values increased from 1997-2002. The eastern part of the regional area continues to support a significant agricultural based economy. Although current crop production is up, employment is down due to improved technology in production and a migration to less labor-intensive crops. In the manufacturing sector, growth has been limited and industrial lot supply & demand is roughly in balance. The State created an Enterprise Zone in 1991, which encompasses approximately 29,000 acres in the northeastern end of the region. Efforts to attract new development to this area have largely failed to date. The economic benefits expire in 2006. Conclusion The subject region is in the growth stage of its economic life cycle. The regional area is projected to continue to double in population approximately every 15 to 16 years. ,The eastern part of the regional area should continue to transition from agricultural uses to residential and ancillary supporting uses. Current country club residential absorption is trending down due to negative national and regional economic conditions. However, the primary housing sub -market at lower price points is trending up, as is the average retail unit price. The hot summer climate of this regional area will continue to create a significant seasonal. market. Long- term prospects appear similar to the historical growth patterns of other, more. mature seasonal markets in the southwest like Phoenix, Tucson, Las Vegas, etc. The core industry of tourism & related businesses should continue to dominate the economy of the regional area in the long term. As the regional area transitions into permanent populations of over approximately 750,000, it is likely that a sufficient labor pool will exist to attract larger manufacturing and non - service related economic entities. (20) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 35 595 Regional Analysis Conclusion (cont'd) In the short term, the subject region is characterized as being in a growth mode. After poor or no growth from 1990 to 1995, the residential and retail sectors trended up sharply through 2002. Current industrial supply & demand is roughly in balance. The hospitality industry had a record year in 1999/2000. The 01102 season was negatively impacted by the 9/11 attacks. The 02/03 season showed a small increase. While the national and regional economic down turn have impacted some real property segments, the lower end primary housing and retail segments continue to progress. These trends are expected to continue through at least the short term. (21) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS Ir" City Analysis, La Quinta, CA L bject .. ; J,•* ' µMO•' ..�1Vr .✓ti� MMr � N..r. n.. � N tl �M. �- NIYM IM/rV.��~J 9 r m � M V �M,;. r •`OF Y. r :,r.„.K..... a ¢ �..... a s • kk +! i rrw rr �w Sw.w d i1i •••• ^ � .r:.ro. w �• a � .nr.rc.. •....+t.... � rro � fi . i �.4 ■ r r g � r +� r rrrr' ;rw..r err r +.�.r�v rrrlM 1 rrvM rr'r' r..rr. w x.•+-n ar� • }-,._..__.. Location La Quinta, CA is located in the eastern portion of the Coachella Valley. The. city is bordered to the west by the Santa Rosa Mountains providing an outstanding natural view amenity. Historically, La Quinta developed around the La Quinta Hotel, which was built in 1926. The City has easy access to Highway 111 and a direct route to Interstate 10 via Washington Street and Jefferson Street. Population Population Growth, La Quints From 1989 to 2002, the permanent P population of La Quinta grew by so,000 approximately 337%, or an 25, average of approximately 28% per 20,OMW year. In addition, an estimated 15,0W 12,000 seasonal residents reside in 1o,000 y La Quinta for 4 to 6 months per s,000 year. The "season" is generally 091 92 •a w ss e� sa c 2 considered January through May. La Quinta has been one of the fastest growing cities in Riverside County. The City has a substantial inventory of residential and master -planned community land remaining for development. (22) CAPITAL REALTY ANALYSTS RFru. ESTATE Appiwsm . ANALYSTS • ADVMMS 37 597 City Analysis, La Quinta, CA Economy La Quinta has historically been known as a higher end resort community. The local a conomy i s d riven m ainly b y t he r esort / r esidential d evelopments i n t he city. The number of high quality projects such as PGA West, Tradition, Rancho La Quinta, La Quinta Resort & Club, and the La Quinta Hotel provide a significant employment base in the service and construction 'sectors. The following graph shows a historical prospective on the number of. residential units developed in La Quinta over the past 16 years: Residential Units Developed 86 88 90 92 94 V0 ■ 86 ■ 87 088 ■90 ■91 ■ 92 093 ■ 94 ■" 096 ■ 97 ■ 98 ■ 99 ■ 2000 ■ 2001 ■ 2002 As shown, the city has had a tremendous number of new residential units developed, in relation to the size of the permanent population. A number of country club projects are currently active in new residential construction. These include PGA West, Rancho La Quinta, Mountain View, The Hideaway, and the Tradition., PGA West in particular has been quite active. The property owner, KSL Recreation discontinued their in-house residential development program in mid-1998 and sold most or the entire remaining superpad production lot inventory to merchant builders. The City s redevelopment agency recently acquired -525 acres of land located west of Jefferson Street between Avenues 52 and 54. Redevelopment of this land will include ars also first municipal golf anned or She course. Future hotel/resort and retail development property, which will create new tax revenue for the city. Other than the homebuilding industry, La Quinta has a substantial economic base in the tourism industry. The Washington Street /Highway 111 corridor new Auto Mall and an approximately 66-acre commercial/industrial park known as the La Quinta Corporate Centre, which is partially developed with more phases planned. A significant amount of undeveloped residential land in the city (23) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 38 598 City Analysis, La Quinta, CA Economy (cont'd) seems likely to assure continued growth on a similar pattern through t east the mid -terra. Based on the historical growth pattern of La Quinta, availability of land, La Quinta is generally projected to remain in. the growth phase approximately of its economic life cycle for app Y the next 15 years. Recent developments have occurred in La Quinta including many notable businesses and restaurants, such as Fisherman's Market, Jensen's Finest Foods, LG s Steak House, Larsen Golf Cars, and The Falls Prime Steakhouse. Other commercial activity along Highway 111 is underway, , including ncudin BigFive --Mart. Sporting Goods, Ross Dress For Less, Staples, and p er Washington Street, new services are expanding, which will include a Marriott Residence Inn, a professional plaza, a medical plaza, and Omri & Boni restaurant. H istoric O Id T own L a Q uinta i s b eing revitalized a s well with n ew restaurants, a mixture of retail stores, and professional office spaces. Also in La Quinta, the new La Quinta Park will be constructed with Spring 2003 as the anticipated completion date, located at the comer of Adams Street and Westward Ho. The graphs below show the economic growth of to Quinta: Hotel Room Sales in Millions $ 097 ■ 98 099 ■ 2000 E 2001 ■ 2002 97 80 as --- Building Permit Valuations in Millions; ■97 ■98 ■99 ■ 2000 02001 97 93 s' ---- - (24) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS. • ANALYSTS • ADVISORS 39 599 City Analysis, La Quinta, CA Economy (cont'd) Taxable Sales in Millions $ 339 139.9 e97, 7.5 ■ 98 099 02000 3.3 ■ 2001 3384k.- e 2002 275.2 r Employment The City of La Quinta is largely suburban residential in character. On a regional level, the resort character of the Coachella Valley reflects the large percentage of employment in the retail, tourism and services. industries. Construction has historically had a strong employment base. The following table shows a summary of employment by sector: Coachella Valley Summary { Industry Employment Retail/Wholesale 23,000 Services 21,000 Tourism 12,500 Agricultural 8,000 Construction 7,500 Govemment/Schools 7,500 Finance Related 6,500 Utilities/Transportation 5,000 Manufacturing 3,500 Total 94,500 Conclusion Quints has had the fastest growth ratio of any other city in the regional area. La This trend is expected to continue, as there area large number of residential acres and existing projects remaining for development. Similarly, the number of households is expected to grow at a proportional rate. Median income levels in the subject market are increasing because of a higher percentage of professional employment. The potential for an increasing employment base within the city is likely to be driven by the continuedsuccess table on the following industry, shows the retail centers. on Highway 111. The current demographic profile of La Quinta: (25) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 40 G 0 0 City Analysis, La Quinta. CA City of La Quinta - 2002 Demographic Profile Sex Occupied housing units 71.5% 10,100 Male 14,081 Owner occupied 81.5% 8,227 Female 14,634 Renter occupied 18.5% 1,873 Vacant housing units . 28.5% . 4,027 Age Units for seasonal use 21.5% 3,031 Under 10 years 4,763 10 to 19 years 4,245 Housing Type 20 to 44 years 9,431 Single family 91.3% 12,902 45 to 64 years 6,430 2 to 4 units 2.4% 335 65 years and over 3,845 5 or more units 4.1 % 580 Median Age 36A Mobile home/trailer/other 2.2% 310 'Total.. Housing Values Family households 7,841 Specified owner occupied units 7,617 Non -family households 2,259 Less than $100,000 15.2% 1,159 Persons in household 28,675 $100,000 to $149,999 25.2% 1,920 Person in group quarters 40 $150,000 to $199,999 20.3% 1,549 Persons per household 2.84 $200,000 to $299,999 18.0% 1,371 $300,000 to $499,999 11.9% 905 Contract Rent $500,000 to $999,999 6.9% 529 Specified renter occupied units $1,000,000 or more 2.4% 1.85 paying monthly cash rent 1,873 Median Less than $300 68 $300 to $499 132 $500 to $749 490. • $750 to $999 647 Per capita income $ 29,123 $1,000 or more 491 Median household income $ 58,229 LMedian Monthly Rent S 872 Median family income $ 60;680 (26) . CAPITAL REALTY ,ANALYSTS REAL ESTATE APPwsus • ANALYSTS • AWIFRS 601 Neighborhood - Market Analysis * Mr a 'I •, M wnw ,rw ` „ ur M y 'S'i r.•r. rr+. r r 1�j � � • o.•Mq MrrA� . 177; U a Subject •. �,,. �" Ivf•1M P �.•.44, • f ai i � M • �IilrTiw.M iw.. �ii�.i.�w C�.� •• -to mow Introduction The subject property includes all of the homes and vacant lots, located on the east and west sides of Jefferson Street, south of Westward Ho, and north of the Wash, and 1 SFR located at the NEC of Jefferson Street and Vista Grande, La Quinta, CA. All of .the parcels are located in an area generally known as Indian Springs. All of the parcels front on the Indian Springs Golf Course, except for the SFR on the NEC of Jefferson and Vista Grande. This home backs to the wash, and although it does not front on the fairway, a wide golf course view is available ' across the wash. Development Trends. Historically, this neighborhood developed around the Indian Springs Country Club. The Club fell into disrepair in the 80's and 90's. Demand proved limited in this location until approximately the late 1990's, when the Indian Springs property sold to a developer who has made substantial improvements to the property. Several hundred new homes have been successfully developed immediately north of the subject within Indian Springs over the past several years. The subject lots front on Jefferson Street. Jefferson has evolved into a major regional artery. However Jefferson narrows to 1 lane each way at the subject, creating a bottleneck. Consequently, the parcels located on Jefferson Street have historically had .limited market appeal. Of the 22 developable lots located on Jefferson between Westward Ho and the Wash, 6, or 27.3% remain undeveloped, after over 40-years of market exposure. (27) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 42 602 Market Analysis In light of the fact• that developers build homes on lots that support values in excess of cost, the high percentage of vacant lots in the subject are supports, the conclusion, that the speculative development on these lots would not prove financially feasible, as of the date of value. Additionally, the cost -based value indicator for many of the subject homes exceeds the sales comparison -based indicator, suggesting that replacement cost exceeds value in many cases, as of the date of value. Although current sales data for units located on Jefferson Street is limited, the following table shows the historical sales data that is available for subject units with Jefferson Street exposure; Lot Unit Sale Sale Sale No. APN Owner Size Size Date Price Price PSF 1 649-090-002 Culp 7,841 2,333 11/20/1991 $185,000 $ 79.30 2 649-071-011 Peterson 11,326 7,841 2,025 1,672 tJ11Z11 as 2/27/1995 a 10V,vvv $143,000 IV $ �''•"' 76.39 3 4 6494)90-004 Waldo 6494)90-006 Rodriguez 7,841 1,984 5/23/1996 $165,000 $ 83.17 5 649-071-019 Astorga 10,454 2,130 2/9/1999 $130,000 $ 61.03 6 649-071-015 Nikolich 7,841 2,336 9/29/1999 $170,000 $ 72.77 7 649-071-016 Rolland 7,841 1,526 4/18/2000 $130,000 $ 85.19 8 649-071-017 Krakoff 7,841 2,419 9/14/2001 $ 210,000 $ 86.81 9 649-071-012 Waggoner 7,841 2,243 1/31/2003 $186,000 $ 82.92 In order to test the value trend for parcels with Jefferson Street frontage, the price PSF, sorted by date, is shown on the following graph: $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 $ PSF Trend On Jefferson 91 93 95 96 99 99 0 1 3 Year —�- $ PSF Linear ($ PSF) As shown, values for homes on Jefferson Street have remained virtually flat, on a PSF level, since at least the early 1990's. Since approximately 2000, values appear to have declined slightly. The reason is that Jefferson Street has become increasingly more busy, lowering both the desirability and marketability of homes on Jefferson Street. (28) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSERS • ANALYSTS • ADVISORS 43 G 0 3 Market Analysis In contrast, I collected sales of adjacent lots from the same Map book, 649-07, that do not. have Jefferson Street frontage. The following table shows the data, followed by the same $ PSF chart: unit sale Sale sale No. APN size Date Price Price PSF 1 649-061-008 2,050 9/1/1992 $179,000 $ 87.32 2 649-071-022 2,458 2/15/1994 $170,000 $ 69.16 3 649-063-010 2,080 3/8/1995 $178,500 $ 85.82 4 649-071-005 1,882 4/13/1995 $160,000 $ 85.02 5 649-071-027 2,496 7/21/1995 $160,000 $ 64.10 6 649-062-020 1,834 9/5/1996 $126,500 $ 68.97 7 649-071-035 1,963 4/30/1997 $155,000 $ 78.16 S. 649-072-004 2,370 1/15/1998 $148,000 $ 62A5. 9 649.063-012 1,822 4/30/1999 $150,000 $ 82.33 10 649_061-019 1,750 5/21/1999 $150,000 $ 85.71 11 649-061-007 1,907 9/8/1999 $145,500 $ 76.30 12 649-071-M 2,197 1/21/2000 $160,000 $ 72.83 13 649-062-016 2,262 7/27/2000 $197.500 $ 87.31 14 649-071-033 1,789 3/30/2001 $ 225,000 $ 125.77 15 649-071-031 2,923 5/8/2001 $280,000 $ 95.79 16 649-061-013 2,305 5/25/2001 $ 225,000 $ 97.61 17 649-072-001 1,953 8/23/4001 $168,500 $ 86.28 18 649-061-015 2,116 9/13/2001 $285.000 $ 134.69 19 649-083-014 1,710 10/24/2001 $ 225,000 $ 131.56 20 649-061-M 2,128 7/512002 $288,073 $ 135.37 21. 649-062-011 2,569 10/16/2002 $320,000 $ 124.56 22 649-063-M 2,526 12/26/2002 $277.000 $ 109.66 23 649-063-015 1,935 2!1/2003 $ 247,000 $ 127.65 (29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 44 604 Market Analysis As shown, values have generally trended up for units in this neighborhood; off of Jefferson Street. For this reason, the comparables located off of Jefferson Street are adjusted downward in the Sales Comparison Approach for their, superior location. This feature is partially offset by the fact that the subject units are located on the golf course. While golf course locations typically: command premiums, the premium for the subject lots is somewhat limited slightly as the lots located on the east side of Jefferson front on a short course. All of the lots front on public golf, which is an inferior attribute as compared with private' club locations. However, upward adjustment is applied to all of the offfairway comparables in the Site Niew category. Conclusion The Jefferson Street exposure of the subject lots is the dominant physical feature of all of these units. The location is among the least desirable in the. City of i_a . Quinta, and consequently, these units carry overall low values as compared with the new homes located in the adjacent Indian Springs Country Club area. The situation is getting worse, as traffic on Jefferson continues to increase. While overall residential market conditions are continuing to increase in the regional market, the value trend for the subject units is flat to decreasing slightly. The decreasing value trend on Jefferson is expected to continue as traffic increases. on Jefferson Street. As shown by comparing the PSF sale prices for units on Jefferson, to those off Jefferson (refer to the 2 tables of historical sales), it is clear that the market is not willing to pay the same PSF prices for unit on Jefferson as compared with those off Jefferson, where there are a number of sales with over $100 PSF sale prices. Alternatively, the highest PSF price paid on Jefferson Street in the past approximately 12-years is just over $86 PSF. Net of any eminent domain action, these trends are expected to continue through the foreseeable future., (30) CAPITAL REALTY ANALYSTS REAL ESTATE Apppwsm • ANALYSTS 9 Amsoas 45 603 Site Analysis Subject Plat Map APN 649-07, Riverside County, CA sw if!"lMb1E : r w � N � N N • � III M_i y� � /r.ftN N « A N' IVY I� !M` 0 ANnf N �ww lit ` O w — C Air, r i �31 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 46 606 Site Analysis Subject Plat Map APN e49-09, Riverside County, CA (32) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS O ApV�RS Site Analysis Subject Plat Map APN 649-14, Riverside County, CA (33) CAPITAL REALTY ANALYSTS REAL ESTATE Apmmsm • ANALYSTS i t Site Analysis Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La' Qwnta:. Riverside County, CA. According to the City of La Quinta Zoning Map, all of Zoning: the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning., is' likely as of the date of value. Site Size: According to Riverside County Assessor's Maps, ere folPlat at the site sizes of the subject parcelsas t APN owner Sits Address SIN SIt4 1 649-071-006 Jeff L. & Patricia C. LOW WA 6,712 2 649-071-M Ellis 8 Helen Wain 48055 Jefferson Street 9463 3 649-071-010 Indian Springs Land CO WA 4 649-071-011 David F. 6 Petrlcb L. Peterson 46115 Jefferson 80" 17,d47 6 649-071.012 am & Suxie Waggoner 46145 Jefferson SOW 6 649-071-013 Eugene T. 3 Carol A. Fox* 46175 Je ferson Street �A841 . 7 649-071-014 David A. 8 Carol A. Elrod WA a 649-071-015 Mean & MYs NMroNeh 46235 Jefferson Street 7.841 . 9 649-071-016 Patsy Rolland 46305 Jelhram SV M 7,841 . 10 649-071-017 Sheet A. Kraltolf 46335 Jeftmon StreeC 7.841 11 649-071-016 Timothy K. Reynolds 46395 J.fferson Street 7.841 12 649-071-019 Ronald Aslorga 46425 Jethreon Street 10A" 13 649-071-M Jeff L. 3 Patricia C. LNley WA GA63 WA 8,712 14 649-071-021 Jeff L. 8 Patride C. LOW 1S 649-071.029 Jeff L. 6 Patricia C. LNhy WA 1.742 16 649-090-001 Harvey A. 3 Audrey R. Mft 46170 Jefferson Stned 7.841 17 649-090-002 Elaine L. 3 Robert L. Culp 0 Jefferson Street 7.841 18 649-090-003 Emma Ra Ws 46250 Jefferson Street 7.841 1f 849�OD0�004 Edward E. 8 Marie A. Waldo 46280 Jefferson Street 7.841 20 849490 M WlNltm NON WA 7,441 21 649-090406 Mk% Rodriguez 46390 Jelhrson Street 7 22 649-090-007 Charles J. 3 AliceS. ZIIins1W WA 7A41 41 23 6494)904W Sue F. Steding 46450 Jefferson Street 7.841 24 649-090-M John D. 3 JeW P. Alexander 46480 Jefferson SONS .. 9,148 25 649-141-001 Leonard C. 6 Margaret R. Henderson 80020 Vista Grande 100154 Shape: Irregular. See. Plat Maps Dimensions: See Plat Maps Frontage: E & W sides of Jefferson Street Topography: Finished residential lots. (84) CAPITAL REALTY ANALYSTS REAL ESTATE ArrtwSERS 0 ANALYSTS AADVISORS 4 Site Analysis Accessibility: Very Good Street Asphalt paved Improvements: Utilities: Utilities are available by the following utility companies: Electricity: Imperial Irrigation District Gas: The Gas Company Telephone: Verizon Water: Coachella Valley Water District Sewer. Coachella Valley Water District Flood Zone: According to the Flood Insurance Rate Map,. Community Panel Number 060709 0005 B, dated August 19, 1991, the subject property is located in Flood Zone X. Zone X is defined. as follows; ' "Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot, or with drainage areas less than 1 square mile; and areas protected by levees from the base flood." Drainage: Surface drainage on the subject appears adequate. Hazards:. Other than' the fact that some parcels abut the Whitewater storm channel, none noted. As areal estate appraiser, I am not qualified to evaluate the site for toxic waste or hazardous substances. Therefore, the property has been appraised as though free of such substances. (35) CAPITAL REALTY ANALYSTS REAL ESTATE Apr.ws RS • ANALYSTS • Ammon n t O 50 L Site Analysis Soils: The Appraiser was not provided with a soils report for the subject property. This report assumes that there are no hidden or unapparent conditions to the soil or subsoil that would render the parcel more or less valuable. My physical inspection of the subject property did , not reveal evidence of obvious soils problems. The Appraiser is not qualified to make a determination as to the existence or non-existence of hazardous materials on the subject. According to Plate 1A of the Seismic Geologic Map, dated January .19, 1982, revised 1988, the subject. property lies within a boundary III Earthshaking Zone. The subject property is not located in an Alquist-Priolo Special Studies Zone, or in areas determined to be in a. liquefaction hazard area. The subject is not located in an Area of Potential. Subsidence. Desert Sands Functional In physical respects, the functional adequacy..of the Adequacy of the land "As is" considered impaired due tot he Jefferson Site, "As Vacant": Street frontage, as both traffic and noise are negative value influences. Additional comments are located 'in the Highest and Best Use Analysis of this report. Special Resources: The course of normal data gathering and analysis, and a visual inspection of the subject, did not reveal any evidence of. natural, cultural, recreational or scientific resources present upon the subject site. Units of In the subject marketplace, vacant land of the subject's Comparison: size and type is typically sold on a per developable lot basis. The price per developable lot is. applied as the unit of comparison in the "As Vacant" condition. (36) CAPITAL REALTY ANALYSTS REAL ESTATE Amman • ANALYST, • Ammon 51 611 Site Analysis Relationship to The subject property conforms to the existing uses in Adjoining the subject neighborhood, which include a mix of older Properties: residential development, along with a significant amount of new residential development. The homogeneous zoning in this area leads me to conclude that SFRs will continue to be a conforming and homogeneous in the short term. (37) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • ADVISORS 52 '= •0®®1�9r�asrsf - II�i9BBE18i@tD9� i6F�lilEI all IiIi�AI16E@Cm�ii`� did �albc6d ti�i ;—qj" r9fisolsn%®fi. �®1(Qs®� 81a�f®11.8/� coati :a w m®soap lMOM=— a iao% Site Analysis Flood Zone Map �I .............. \ Subject 1 _ SiNN �. ; (iM IIIIMIIIC( NJtl OAF i t4 /{ C 3 7 MOM �I�nr s � (39) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 54 614 w rw Highest and Best Use Analysis Highest and Best Use is defined as: r 1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of appraisal. 2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present land value. 3. The most profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations, the highest and best use of land may b e for p arks, g reenbelts, p reservation, conservation, w ildlife habitats, a nd the like.' In estimating the highest and best use, there are essentially four stages of analysis: 1. Legally Permissible: What uses are permitted by zoning and deed restriction for the subject site? 2. Physically Possible: What are .the physically possible uses for the subject site? 3. Financially Feasible: What physically possible and legally permissible uses will produce a .net return to the owner of the site? 4. Maximally P roductive: Among the financially feasible uses, which use will produce the highest net return or the highest present worth? The following tests must be met in estimating the highest and best .use: The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the .longest period of time. To estimate the highest and best use, these tests are applied to the subject property (1) as if vacant and. available for development, and (2) as presently improved. American Institute of Real Estate Appraisers The Dickmary of Real Estate Appraisal (Chicago IUinois: American . Institute of Real Estate Appraisers, 1964), Page 152 (41) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 56 616 Hiahest and Best Use Analysis "As if Vacant" Legally Permissible The legal restrictions that apply to the subject are the public restrictions; of the City of La Quinta's RL, Low Density Residential zoning ordinance. A large number of similar zoned parcels have been successfully developed. in area of the subject, with no atypical legal constraints. The . legal constraints of the subject are considered reasonable and appropriate and would not impair development of the site to its highest and best use'. Physically Possible The subject parcels were subdivided and designed to be detached single family residential lots, located on fairways of the Indian Springs Country Club. The size, shape, topography, and utility installations are all designed to support residential development. These aspects of the site represent. the standard of acceptability f or s imilar residential I ots. The I ots front of Jefferson Street which is a major regional artery. The traffic impact and noise levels make these lots much less desirable as compared with neighboring residential lots, not located on Jefferson Street. While this feature does not prevent development, the lack of feasibility has prevented 8 of 22 lots from being developed. Financially Feasible Financial feasibility for residential development is typically estimated with a simple comparison of costs and benefits. If the cost to construct a prospective development exceeds the present value of the cash flows to be derived from the development, the proposed use is not considered feasible. Alternatively, if the present value of the expected income streams exceeds the cost to produce the proposed development, the use is considered financially feasible. As described above, the fact that 8 f 22 lots remain undeveloped on. Jefferson Street after over 40-years, while several hundred lots have recently been developed off Jefferson Street in the immediate area of the subject, suggests that financial feasibility for speculative development of residential units on the subject lots would not be financially feasible as of the date of value. Additional evidence is provided by the fact that no developers, owners, or lenders are risking debt and equity on new development n these lots. (42) CAPITAL REALTY ANALYSTS REAL ESTATE APPwuSEn • ANALYSTS • ADvam ►'j 57 Hiahest and Best Use Analysis "As If Vacant" Maximally Productive The physically possible and legally permissible uses for the subject property are present in the subject region. Other similar properties in the subject region have been successfully developed and absorbed. As current financial feasibility for development does not appear adequate as of the date of value, the most maximally productive use of the site, "As Vacant", is to hold the lots for investment until such time as development of the lots becomes financially feasible. "As Improved" ' All of the improved homes add an increment of value that exceeds the current land value. Consequently, the highest and best use of the lots as improved is to remain as improved. (43) CAPITAL REALTY ANALYSTS REAL ESTATE Apmmsm • AmLYSTS • "SORS Appraisal Process The first step in the appraisal process is to identify the appraisal problem. Every real property is different and there are many types of values that can.. be*. estimated for any real property. For this appraisal assignment, .the required value estimate for the subject is as follows: ♦ Just Compensation For The Part Taken The definition of market value has been defined in the Purpose of the Appraisal section of this report. The subject property and the type of value desired' have been identified. Through the appraisal process, it is my intent to present a properly supported value estimate for the subject property. The market data, analysis and conclusions presented in the appraisal report should cause a reasonable person to reach similar conclusions. There are three traditional approaches to estimating market value for this property type. These are the Cost. Approach, the Sales Comparison Approach and the Income Approach. The approaches to value, and their applicability to this analysis, are described as follows; Cost Approach "A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting. accrued depreciation from the reproduction or replacement cost; and adding the estimated land value' plus an entrepreneurial :profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised."' The Cost Approach is considered most relevant when the improvements are new, as depreciation can be estimated with a reasonable degree of accuracy. Another case when the Cost Approach works well is when market conditions are such that the typical buyer would realize similar yields b y b uilding n ew, o r a cquiring a n e xisting s et of i mprovements. I n this case, the vacant subject parcels do not have any improvefrients with an associated cost. Consequently, the Cost Approach is not applied as a valuation method for the vacant parcels. The Cost Approach is applied to estimate the market value of the improved residential parcels. ° The Dictionary Of Real Estate Appraisal Third Edition Appraisal Institute 1993 Page 81 (44) CAPITAL REALTY ANALYSTS RFAL ESTATE APPRAISERS • ANALYSTS RS 619 Appraisal Process Sales Comparison Approach "The Sales Comparison Approach is the process in which a market value . estimate is derived by analyzing the market for similar properties and comparing these properties to the subject. property. Estimates of market rent, cost,. depreciation, and other value parameters may be derived in the other approaches to value using comparative techniques. Often, these elements are also analyzed in the. sales comparison approach to determine (estimate) the adjustments to be made to the sale prices of the comparable properties. The comparative techniques of analysis applied in the sales comparison, approach are fundamental to the. valuation process."o The Sales Comparison Approach can be a strong indicator ,when sufficient comparable sales data exists, and is generally the best technique available to estimate the market value of vacant land, such as the vacant subject parcels. Additionally, SFRs such as the improved subject parcels are typically acquired based on their comparability . to functionally equivalent substitute properties. Consequently, the Sales Comparison Approach is applied to estimate the market value of all of the subject parcels. Income Approach "A set of procedures through which an appraiser derives a value indication for an income -producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in 2 ways. One year's income expectancy can be capitalized at a market -derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment. and change in the value of the investment. Alternatively, the annual cash flows for the holding p eriod a nd t he r eversion can b e d iscounted a t a s pecked y ield rate.",o Lacking improvements with income earning ability for the vacant parcels, and lacking sufficient rental comps for the improved parcels, The Income Approach is not applied for any of the subject parcels for this analysis. A reconciliation completes the analysis leading to the final value estimate." The Appraisal Of Real Estate. Tenth Edition. Appraisal Institute, 1992; Page 367 The Dictionary Of Real Estate Aporalsal. Third Edition, Appraisal Institute, 1993. Pape 178 " Note that computerized spreadsheets may be used in this report. Numbers are typicaNy accurate to 6 decimal pants and rounded to the nearest whole dollar or 100th of a percent. Manual calculation of totals may result in insignificant (45) CAPITAL REALTY ANALYSTS REAL ESTATE AMPRMSERS • ANALYSTS • AJX%f=RS 60 620 Sales Comparison Approach The Sales Comparison Approach is the primary method applied to estimate the market value of all of the subject lots and homes. The Sales Comparison Approach is defined. as follows: °A set of procedures -in which a value indication is derived by comparing the property beingappraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale . prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available."70 As described in the Market Analysis and Appraisal Process sections, 4 sales are applied to estimate the market value of. the homes and lots. Two sets of sales are included, One set of 4 sales is applied for the single-family homes, and another set of 4 sales are applied to estimate the market value of the fee simple estate in the subject vacant lots. Since the same set of sales are common to all of the homes and lots, the sales are. described once in this section, as follows: Single Family Home Comparables Comparable Sate Number 1 Comparable sale number 1 is the March 5, 2003 sale of a 1,879 SF home located on Vista Grande. This home is located immediately east of the subject Henderson (APN: 649-141-001) property. This sale was selected for comparison as it is located on one of the subject streets, and has a view over the wash of golf course. At 10,454 SF, this is one of the largest lots in the Tract. The .unit has a gated entry with a front -yard pool, which is common among several of.the subject SFR's. The unit has a split -bedroom floor plan and is on sewer. The unit sold for $235,000 and is not located on Jefferson Street, which is a positive locational attribute. The unit does have a long golf course view. The original asking price was $239,000. The unit was on the market for 6 days. 10 The Dichonary of Real Estate Aplyalsaj, The Appraisal Institute (46) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 61 621 • • Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 2 Comparable sale number 2 is the November 2002 sale of a 1,928 SF home located on Fiesta Drive, west of Jefferson. The sale price was $225,000. This data item was selected for comparison because it is a 1964 vintage home, which has recently been extensively remodeled. Consequently, this sale should represent the top of the market for older homes such as. many of the subject units; that have been well -maintained. This sale does not have Jefferson Street exposure, which is a positive locational quality. The remodeled items include the following: • Security System • New Carpet • New Tile Floors • Corian Kitchen Counters • New Tile Counters • New Sinks and faucets in baths • New vertical .blinds • New FAU • New Dishwasher • New pool / deck Although the location off of Jefferson Street is superior, the lack of golf course exposure is a negative site attribute in comparison to the subject golf course lots. The original listing price was $259,000. The unit was on the market 80 days. (47) CAPITAL REALTY ANALYSTF6/ RFAL EsTATB APPRAISERS • ANALYM • ADMORS �-N �, 2 2 Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 3 Comparable sale number 3 is the. February 2003 sale of a 1,935 SF home located on Cortez Lane, west of Jefferson Street. The sale price was $247,000. The original asking price was $279,500. The unit was on the market for 63 days. The seller had replaced the original shake roof with a new tile roof just prior to the sale. Additionally, the pool and deck had recently been redone. The home has shutters on all windows. These features required a downward adjustment in the upgrades category. The unit is a superior location off of Jefferson Street. However, the lack of golf frontage is a negative site quality. This feature is partially offset by the fact that the unit has a very long view. Comparable Sale Number 4 Comparable sale number 3 is the May 2003 sale of a 2,444 SF home located on Roudel Lane, west of Jefferson Street. The sale price was $240,000. The original asking price was $299,950. The unit was on the market for 198 days. The long marketing time, and wide disparity between the listing and selling prices demonstrate the market resistance and price barrier for older improvements in this sub -market. This sale was selected to demonstrate a larger unit sale. Additionally, this is a very recent sale in the market. (48) CAPITAL REALTY ANALYSTS REAL. ESTATE APPRAISERS • ANALYSTS • ADVISORS 63623 Sales Comparison Approach Vacant Lot Comparables Comparable Sale Number 1 Comparable sale number 1 is located along Hummingbird, just west of Jefferson Street. At 20,038 SF, this lot is large for the neighborhood. The lot sold on 4/22/03 for $63,500. The lack of Jefferson Street frontage is a positive feature. The lack of golf course exposure is a negative feature. Overall comparability is considered good. Comparable Sale Number 2 Comparable sale number 2 is the 8/13/01 sale' of a 10,019 SF SFR lot, located just west of Jefferson Street. The sale price was $46,000. This data item is considered typical of lot values off the golf course, in the immediate area of the subject. Overall comparability is considered average. Comparable Sale Number 3 located in the. Comparable sale number 3 is an example of a larger lot, Cove area of south La Quinta. Lacking sufficient sales from within the immediate area of the subject, I elected to pick a sale from the Cove area, where there are older homes mixed with newer homes, such as those of the subject area. However, the Calle Tampico location is considered superior. The lot sold on 1/16/0.3 for $80,500. Comparable Sale Number 4 Comparable sale number 4 is a 6,098 SF SFR lot sale taken from Laguna De La Paz. This sale was selected for comparison, as the lot fronted on the lake, which is considered to be of a similar value as compared with a golf course exposure. The development is gated. The lot sold on 1/23/03 for $73,000.Overall comparability is considered average. Valuation Sections The following sections outline the valuations for each of the subject parcels: (49) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • ADVISORS 624 • • Feack: 649-071-013 Owner of Record: Property Type: Location: Identification: Census Tract Number: Eugene T. & Carol. A. Feack Single Family Home 46175 Jefferson Street, La Quinta, CA. APN: 649-071-013, Riverside County, CA. Tract 452.05 Site Size: 7,841 SF Site View Elements: West facing lot with a golf course view, and Jefferson Street frontage. Improvement The property is improved with a 1,977 SF, Class D Description: (wood frame) 3 bedroom / 2 bath single-family home, a 573 SF 2-car garage, and a 330 SF shop area. The roof is concrete tile. The property has a rear -yard spa. The improvements were constructed new in 1987, and were observed to be in good condition on the date -of value. Estimated Economic 60-Years Life: Estimated Effective Age: 10-Years Highest And Best Use, "As Vacant": Highest And Best Use, "As Improved": Final Value Estimate: Sales History of the Property: Hold for investment Remain "As Improved" $268,000 According to the current owner, the property has not sold, or been listed for sale in the past 3-years. (73) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • Awn RS 6 r,r. 7,� a fi.� low ok, • s Floor (75) CAPITAL REALTY ANALYSTS 627 REAL ESTATE APPRAISERS • ANALYSTS • ADvff • • Cost Approach Address: APN: Estimated Site Value: Estimated Reproduction Cost New: Dwelling Shop Spa Garage Multiplier Total Cost New Physical Depreciation Functional Depreciation External Depreciation Depreciated Value Site Improvements Total Cost -Based Value 46175 Jefferson Street 649-071-013 $ 72,000 SF Cost Extension 1,977 $ 60.57 $119,747 330 $ 25.00 $ 8,250 1 $ 5,000 $ 5,000 420 $ 15.71 $ 6,598 1.1413 $ 231,320 16.67% $ 23,266 0.00% $ - 0.00% $ - $ 208,054 $ 35,000 $ 243,064 $243,054 $243,000 (Rounded) (Two Hundred Forty Three Thousand Dollars) (76) CAPITAL REALTY ANALYSTS V REAL ESTATE APPRAISERS • ANALYSTS • ADV�,SQRS a �$ �aa N Rj N N N N M' N cc 5 pp z e7 e7iTj1 b N N N M iy �7 1� fA N N c N u�f 0p 88 88 pQ OQ `QQ�, pN� p o 0 0 p O M � N N p M y N v N v v N v N z i m l'7 � w co a Of N N � O 40 N N N v 44 N N z NQ eVp it � ip Q7 8 N A N a G M N C N N ti m 8§ g 8 8 O� A N C p p C O p O M O O N yT► v N N M N NpN N N v v M N N c N E E R co N CV) yinina o,n. o cc x IHO-lC.) R333 � 3 N 3 3 3 a Q a' _ N ago$ °"bg d 1:6 w IL FIL FL z d C � 0 69 629 Conclusion The cost -based indicator came in at $243,000. The Sales Comparison -based indicator came in at $268,000. This home is one of the highest quality units among those in this analysis. The owner has made significant upgrades to the home, which makes it superior on condition to the comparables. The owner supplied a 6 -page list of these upgrades, which is included in the Addendum. Based on the available data, it is my opinion that the market value of the subject property, b ased o n t he d efinition o f market value d escribed i n t he i ntroduction section of this report, is as follows: $268,000 (Two Hundred Sixty Eight Thousand Dollars) (78) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS O 70 Certification I certify that, to the best of my knowledge and belief, The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report. and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence or a subsequent event. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person(s) signing this report. The reported analyses, opinions and conclusions were developed, and this repot has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. Michael A. Scarcella, MAI State Certification No.: AG019463 Expiration Date: October 24, 2005 (177) CAPITAL REALTY ANALYSTS Rz&L Fs rA m ArPRmyss • ANALY s • AuVWU 71 .�, endum (178) CAPITAL REALTY ANALYSTS RLa ESTATE A"R ussn • Awu.YM • ADVEM 72 632 Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or tide considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all.liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The. information furnished by others is believed to be reliable. However, no warranty Is given for its accuracy. The appraiser reserves the right to make adjustments to the. analyses, opinions and conclusions in this report, as maybe required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless nonconformity has been identified, described and considered in t he appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative • authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. it is assumed that the utilization of the land and improvements - is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a lossn naluknowledseorequiiredi to discover fore themr Theconditions userforany user is ' expertise or engineering 9 urged to retain an expert in this field, if desired. (179) CAPITAL REALTY ANALYSTS Rom. EsTAT6 APPwAism * AmAmTs • ADVWM 633 73 Assumptions and Limiting Conditions 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The* appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the i dentity o f t he a ppraiser, o r t he f irm w ith which t he a ppraiser i s c onnected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 16. Improved Properties - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. 1 (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. it is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance. with one or more of the requirements of the Act. If so, this Since 1 (we) have fact direct have a negative effect upon the value of the property. evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. 17. Improvements, Proposed Improvements The value estimates in this report are subject to the improvements being completed in the manner represented to the Appraiser(s), and described in the Improvement Description section of this report. 1S. The legal descriptions, site sizes, dimensions and/or other surveys provided to the. appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. (180) CAPITAL REALTY ANALYSTS A REAL ESTATE APPwurs sEn • AWALY • ADvOM [� r v 74 MICHAEL A. SCARCELLA, MAI Education 1982 B.S., Business, University of Nevada, Las Vegas. 1991 - Real Estate Appraisal Principles. 1992 - Basic Valuation Procedures 1992 - Standards of Professional Practice 1993 - Basic Income Capitalization 1993 - Advanced Income Capitalization 1994 - Report Writing & Valuation Analysis 1995 -.Advanced Applications 1996 - Federal & State Laws & Regulations 1997 - Standards Part A & B 1997 - Property Management 1997 Real Estate Economics 1997 - Real Estate Finance 2000 - Report Writing 2001 - Tax Free Exchanges Professional Oraanizations/Licensing Member of the Appraisal. Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser, Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute — So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee; 1999, 2000 So. Cal. Chapter Ethics Committee FAA Certificated Pilot #551317536 General Experience 1997 to Current Capital Realty Analysts - President .1991 to 1996 - MacKenzie and Associates — Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta P.S. Unified School District Desert Sands School District Southern California Edison Mojave Water Agency Desert Hospital Private .Sector Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States Filter Sunrise Company Canyon Development Magellan Corporations Temple Construction Santa Fe Pacific Takenaka Corporation Betty Ford Center Heart Institute of the Desert Basic Capital Management Developers Attorneys Accountants Institutional Lenders Bank of America Home Savings Wells Fargo Bank El Dorado Bank Washington Mutual Bank Bank Midwest Pacific National Bank Canyon National Bank Banc One Fidelity Federal Bank Bankers Trust Company First Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Foothill Independent Bank Valley Independent Bank First Bank (181 CAPITAL REALTY ANALYSTS MAL EsrATE APPRAISERS 9 ANALYSTs • ADVLSORs 75 633 0 NOTIFICATION OF RIGHT TO CLAIM LOSS OF BUSINESS GOODWILL The City wishes to acquire a portion of the property situated at (Address), California for the purpose of the Jefferson Street Widening Project, Phase 2. You have received this "Notification of Right to Claim Loss of Business Goodwill" because you have been identified as the, owner of the property. In certain circumstances, the owner of a business operating on property subject to eminent domain may be entitled to claim compensation for loss of business goodwill, when it can be shown the loss is caused by the acquisition of property by the acquiring public entity, or by the project for which the property is sought to be taken. The City's offer of just compensation included in this letter does not include any amounts for loss of business goodwill. If you own or operate a business on the property which is the subject of this offer letter, you are requested to review this "Notification of Right to Claim Loss of Business Goodwill," and the "Claim for Loss of Business Goodwill," and "Loss of Business Goodwill Questionnaire" attached hereto. If you do not own or operate a business on the property, but know of a person or entity who does, you are requested to notify the City with the name, phone number, and address of such person or entity, so that these forms can be forwarded to the appropriate party. California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.510 of the California Civil Code of Procedure states: (a) The owner of a business conducted on the property taken, or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property of the injury to the remainder. 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill. 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code.' 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. ' Section 7262 of the Government Code refers to compensation to displaced persons for moving and related expenses as a part of the cost of the acquisition of real property for a public use. Compensation for the loss of goodwill under Section 1263.510 of the California Civil Code of Procedure will only be made to the extent such loss is not compensated for under Section 7262. For more information regarding a business owner's eligible payments under the Relocation Assistance Program, please call Kathy Woolley at 760-772-4255. 119/015610-MS -7- 7c [� 419354.01 a07/29/03 V V (b) Within the meaning of this article, "goodwill' consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstance resulting in probable retention of old or acquisition of new patronage. If you wish to file a claim for loss of goodwill at this time, please complete, sign, and return the attached Claim for Loss of Business Goodwill and Loss of Business Goodwill Questionnaire within sixty (60) days of the date of this notice. In addition, please submit the information requested below. This information will assist the City in completing an analysis concerning the claim for a loss of goodwill. However, if you wish to wait until a later date to make a claim for loss of goodwill, please send us the claim, questionnaire and the other requested information at that time. 5. State of California Income Tax Returns The law places the burden upon the business owner to provide state tax returns pertaining to the business to support the claim for loss of goodwill. Please supply true copies of your tax returns for the last five tax years, or your period of ownership if less than five years. : 6. Business Financial Statements Please provide true copies of your Balance Sheets, Profit and Loss Statements and/or Cash Flow Statements for the current year to date and each of the prior five years or your period of ownership, if less than five years. 7. Tangible Assets Include a list of the furniture, fixtures, machinery and equipment belonging to your business. Please use the itemization sheet attached to the questionnaire. 8. Intaniible Assets Include a list of such assets as patents, liquor licenses, etc. Please use the itemization sheet attached to the questionnaire. 9. Business Purchase Documentation If you have purchased the business within the last five years, please provide true copies of documentation (escrow instructions, purchase agreement, bill of sale, etc.) which provide details of the transaction including financing, the assets purchased, agreements not to compete, and how the total purchase price was allocated to inventory, fixtures, equipment, licenses, goodwill, etc. A loss of goodwill analysis and valuation normally includes a personal interview with the business owner. An interview will be scheduled after we receive the requested information. 119/015610-0009 -8- 77 637 419354.01 a07/29/03 CLAIM FOR LOSS OF BUSINESS GOODWILL Business: Business Address: This form and the attached completed, signed questionnaire with tax returns and other supporting documentation constitute formal notification to the City, that the owner(s) of the above business entity contend(s) that the business will suffer a compensable loss of business goodwill due to its displacement or disruption by the proposed project. 1. Our estimate of total goodwill is $ 2. Our estimate of the compensable loss of goodwill is $ 3. The loss of goodwill after taking measured to minimize the loss is caused by: 4. The following measures will minimize the loss of goodwill: The undersigned owner or duly authorized officer has executed this notification on behalf of this business operation. Name: Title: Date Address: 119/015610-0008 _9_ 78 419354.01 a07/29/03 6 • • LOSS OF BUSINESS GOODWILL QUESTIONNAIRE Business Owner: Business Name: Business Address: Type of Ownership Business Identification Number: 1. What type of business do you operate? What type of products are sold or manufactured? What type of services are provided or sold? 2. When was the business started? 3. When did you obtain ownership of the business? 4. How long has the business been at the above address? 5. What type of clientele does the business have? Do you have key, customers or clients? 6. From what geographic area does the business draw its patronage? What percentage of the business volume is drawn from each of those areas? 7. Does the business operate at any other location? If so, where and what percentage of total business volume is generated from each of the other locations? 8. Is the business part of a chain? Is it a franchise? If so, provide details including fees, marketing agreements, etc. 9. Who are the business's major competitors? Where are they located? (If more room is needed for any answers, please insert additional sheets and continue by number.) 119/015610-0008 -1 Q- 9 6 3 9 419354.01 a07/29/03 10. How many days a week is the business open? What are its hours of operation? 11. How many persons are employed by the business? Please provide the following? Position Days/Week Worked Hours/Week Worked L Owner Manger Others (list by job title) 12. What were the main factors you considered in operating your business at the present location? What are the locations' advantages? Disadvantages? 13. What improvements did you make to the present location in order to open for business? 14. If you are a tenant, to what improvements do you claim ownership? 15. Were there any special requirements to open for business, e.g., rezoning, permits, special use permits, health and safety permits, environmental report, etc.? Please provide details. 16. What area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 17. If you are a tenant of the area you lease, how much, if any, is not used in your current business operation? Land sq. ft. Improvements sq. ft. 18. What future plans (expansion, etc.) do you have for the business? Please give specifics. 19. Did you have any prior plans to relocate the business? If so, where and when? 20. What would be your site and building requirements at a new location? a. Type of building (freestanding, strip center, storefront, etc.): b. Building size: C. Site size: d. Site distance from existing location: e. Parking requirements: £ Utility requirements: g. Loading docks? Truck? Rail? 119/015610-0008 -1 1- 419354.01 sQ7/29/03 80 6,10 0 .0 h. Other special plant, service, or locational needs: L Monthly rental (range): 21. Describe what problems, if any, you foresee in re-establishing the business? 22. Have you looked for or found a replacement location because of the State's project? Have you made any relocation plans? If so, provide details. 23. What, in your opinion, is the market value that a knowledgeable buyer would pay for your present business? Allocate as follows: Value of the tangible assets: $ Value of the intangible assets: $ Value of the goodwill: $ Total value: $ 24. What is your estimate of loss of the goodwill which may result from relocation or disruption of your business? 25. What do you believe would cause this loss of goodwill? Do you believe the loss would be temporary or permanent? 26. What reasonable steps can you take to avoid or reduce this loss of goodwill? 27. How would you perform these steps? 28. What do you think the cost of these steps would be? 119/015610-0008 -12- 81 641 419354.01 a07/29/03 If you have already relocated or will remain at the existing location but have suffered a disruption in your business at the time you submit your claim, please answer the following questions: 29. The address of the new location (if applicable). 30. Date business closed at the old location and the opening date at the new location. 31. Price paid for new location or copy of lease/rental agreement. 32. Improvements made and their individual cost , in order to reopen (or continue) business. 33. In its relocated or disrupted state, what area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 34. Hours of operation at the new location. 35. How many persons are employed in your relocated or disrupted business? Please provide the following: Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title). 36. Market area served at new or disrupted location. 37. Customers lost, if any at new or disrupted location. 38. Number of new customers at new or disrupted location. Please include the signature of person preparing the answers to this questionnaire and nature of interest in the business. Name: Interest: Date: 119/015610-0009 419354.01 a07/29/03 -13- 82 642 ATTACHMENT 2 P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 December 29, 2003 Eugene T. Feack Carol A. Feack 46175 Jefferson Street La Quinta, CA 92253 Re: ASSESSOR'S PARCEL NUMBER 649-071-013 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46175 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46175 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-071-013 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in 119/015610.0008 458250.01 a12/24/03 83 4 643 0 Eugene T. Feack Carol A. Feack December 29, 2003 Page 2 the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) = Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental 119/015610-0008 644 458250.01 a12/24/03 84 • Eugene T. Feack Carol A. Feack December 29, 2003 Page 3 Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yo s, M. Kath ne Jenson City Attorney, City of La Quinta Cc: Bruce Sample, Esq. Attachment 119/015610-0008 458250.01 al2/24/03 85 645 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 22 Of Tract No. 2190, In The City Of La Quinta, County Of Riverside, State Of California, As Per Map Recorded In Book 41, Pages 55 Through 57, Inclusive Of Maps, In The Office Of The County Recorder Of Said County. APN 649-071-013 86 646 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I:3 19 20 21 22 23 24 25 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP 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 511 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46175 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Eugene T. Feack Carol A. Feack 46175 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collection and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same day in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I am confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after date of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 26 27 28 2046/015610-0008 463467.01 a12/29/03 87 647 Confirmation Report —Memory Send Time Dec-31-03 10:20am Tel line 1 714-546-9035 Tel line 2 714-546-9035 Name RUTAN l TUCKER,LLP Job number 547 Date Dec-31 10:14am To 2#4880915624943958 Document Pages 06 Start time Dec-31 10:14am End time Dec-31 10:20am Pages sent 06 Job number 547 *** SEND SUCCESSFUL *** RUTAN BkTLICKER LLP Attorneys aat .Law 611 Anton Boulevard• 14t6 Flour Costs Mesa Caslitornia 92626-1931 Mailing waidress: Post 400MCe Sox 19SO. Costa Mesa. CalilOrnia 92628-1950 Telephone= 714.641.5100 Facsimile 714.546.SP035 FACSIMILE TRANSMISSION DA're: DsC:wMn&as 31, 2003 NAME Fwx No. PHONE No. Sruce Sample, Vsq. 1 (5623 494-3958 (.562) 597-0029 FROM: M. iGntlaerine Jenson - 119 TM JwfT&rS9m Street Widening - Phase 11 CLIEN T/MAT'I'ER NO.: 010610-0008 NLJI,.49ER OF PACES. 1TICLUI±LI44-_ COVER' 6 MESSAGE' Please call me tO discuss the attached. TFaG INFORMATION CONT^jwKD !h, TL 115 FACY.LMILE MSSfi.�UG LS INTENDED trQ^ TIIE 1JSE aw '1'nfi MDIV IOUwI Oft ENTITY RO WH[C'N IT 1� �.DDRESSED. AND M.•IY C:ONTw1N [NF01zMw'Y LON THAT lal PI WLLEGF.D AND CONFaDfiNT7AL IF T11E AEAOEA OF TJa15 M GSSwOE Ja NOT TnE1NTfiNDL•D REC[Pia[N'C OA /►GENT REYYO NSIH L.E TO DELI VER THS M16a1a1ACE TO TMIf INTENDED RFC-'ar liaNT. V t7V /LItG 11EA6HY NUTIF LED THAT l..NY DlSsumlN TION. DISTRlHL11"lON OR COPYING O! THlu 40MM UN[CATIGFN lS STRICTLY PROHlnl_r .D JF YOL7 HA "CEIV6D Tat As COMMUN[C'A"CION Th! WS RO1t. PLEA915 14CYl'LPV us iMM1[OHTfi LY BY '1'r LQYHONF /ENO RETURN THE OALGiN.•I l_ N4fiSSwGL TO VS /.'1' TliC ABOvfi wDDRL'SSU.S. POYZ'AL SERV ICE. TYI "`• YOU. lr%n ra a P10121 l+T—W.—S Th.• V- TF4n.ln.q L ail— 0. 11 7L4.041 5100. E.. 1235 11wu15610-00Y6 4 8565.02-12/31,03 RM Confirmation Report —Memory Send Time Dec-30-03 04:50pm Tel line 1 714-546-9035 Tel line 2 714-546-9035 Name RUTAN & TUCKER,LLP Job number Date To Document Pages Start time End time Pages sent Job number 737 737 Dec-30 04:45pm 217990915624305117 06 Dec-30 04:45pm Dec-30 04:50pm 00 *** SEND FA I LED *** RlJTAN BzTUCKER LLY Attorneys at Law 611 Autos Boulevard, 14t11 Floor Costa Mesa CaJifornin 92626-1931 Mailing Address: Post C30Mee Box 1950, Costa Mesa, California 92628-1950 're1eplaons: 714.642.5100 Facsimile 714_546_9035 FACSIMILE T]kZANSMISSIUN D^TE: EmCSMB63t 30, 2003 NAME Fax No. Pr1oN>: No_ Bruce Sampls, Esq. (562) 430-S117 (562) 493-4456 FROM: M_ Katherine Jenson - 119 RE. Je3Yerson Street WJdening - PJ3ase it CLIENT/MwT'i'SR NO.: 015610-0001 NUIVIHSR OF' PAC3ES, INCL[.JnIS�rci. COVER: 6 Mess..cE- Please call the to discuss the attacded. 1"H1c 1N}-JRMwT11.IN CONT.4TJVGD rIJ THIS FACSIMILE MIASSI%GFi IS rNTBwxDED Polk Tne u3E OF TATE 1NOIv10uw3.. OIL I:241'11Y 10 WHICH IT Is ^nDRBSSED. AIVD MAY CONTAIN INFORMA'rION T}1AT IS CONFIOIIN 17— IF TH6 READER OF THIS T.IF.SSACe IS NOT THE r,,;,rZIYDED "CIP1eNT OR AGENT RESPONS1BLf TO DELlvltlt PHFs MEi1[AOE :T THS 1N'T'BNDBD RECIPIENT. YOU AR£ 1-[r- cgY NO'I'IFiSD 17*CA'r ANY D/SS6MWw"1'ION. Dlti-I'R1UUTION OR COPYING OF THIS COMMI.TNICATION is sTR.1CTLY PRu1-I[H [TSD �[F VOL) H^" V%. R6CSIVFD THrS COM MI.1NTc^77ON ZN ERROA PLEwSe [ OT[FY vS LMM£Olw'C£LY ev "1'1i Li<YMON1= AND RETClRN TH6 ORTOCNAT_ MBSSAOe TO []S AT TH6 ASOVB ADDRl°43 VIw TlaP_ U.9_ POSTAL SfeAv[CG. THANK YOL Aft— — yrle/rn1+1 r4crl v.lu/ Inlr flu "I�:1nrm1au.1 Pleafe aril 714 0+l SIUU, EwI [235 119-1 Se 1 U_UUUII 3565 OI ►I 2/30/03 89 649 • Confirmation Report —Memory Send Time Dec-30-03 05:18pm Tel line 1 714-546-9035 Tel line 2 714-546-9035 Name RUTAN & TUCKER,LLP Job number 526 Date Dec-30 05:13pm To 216831915624305117 Document Pages 06 Start time Dec-30 05:13pm End time Dec-30 05:18pm Pages sent 00 Job number 526 *** SEND FA 1 LED *** RIJTAN BzTUCKER LLP 1►tsornays at Law 611 Anton $oolaws rd, 14tb Floor Costa Mesa Callfornia 92626-1931 Mailing Address: Yost C31Mce Host 1950, Costa Mesa, California 92628-1950 Telaphasoe: 714.641.5300 Facsisz"14e 714.546.9035 FACSIMILE T12A1'vSMISSI�N DwTE: DfiCEMlsfiR 30, 2003 Hard Co to Follow via Mail: ND To- PtioNE No. Nw11aE E E13 0-5117 (5623 493-4456 Bruce Sasnp 4• FROM: M_ Katherine Jenson - 119 iZE JeiYersoa Street Wiclanio8 - pbasa 11 CLIENT/MwTT£R NO.: 015610-0008 NLIMBHR OF P. 43Es. 1r14CLlJ1C31NG COVER: 6 MESSAGE' Please call me to discuss t214B attached. IS DDMIESSEDrwND µAY CUNTw1NSN FO►cinw :ON -r x ISA-C-P is INTlRD +-SGfiD wND CON(O.iDENT{A D FIMT4THE RSwOE_R OF Tr4u Mr COY N0 1T'+LD THwT�cir D SSEM+NwTION�. DaST SRinUTLT[fN OA CO Y,I C r4oOFSTN111 G'OMM1,)1V7l:wE'," ON is STRaC('LY i RD,N IF OR o1NwL M1i1:S GELS TO u wTT SuwaO E wDOxtSS v[w;TMS V 5� POSTwL CRrl ES T'NwNK YOI� TELEIHON� if sfisra uer V•oblem+.Y�swing ah.• Ft•+ "tY..nrmsol Plerale "11 '714 641 .5100, i1,.1 1233 110/015610-0009 o nb365.01 12/30/03 90 6Jo •'Confirmation Report —Memory Send Time Dec-30-03 05:58pm Tel line 1 : 714-546-9035 Tel line 2 714-546-9035 Name RUTAN 4 TUCKER I.I.P. Job number 363 Date Dec-30 05:53pm To 210091915624305117 Document Pages 06 Start time Dec-30 05:53pm End time Dec-30 05:58pm Pages sent 00 Job number 363 *** SEND FA I LED *** Ri.JTAN &x rx3CKER LLP Attorneys at Law 611 AatOn $OLLlevard, 14t1s Floor Costa Mesa Calit'ornia 92626-1931 MaiiinS Address: Post OtYice $0:c :&930, Costa Mesa, CaliTornla 92625-3950 . 'I's�eplsone: 734.641.5100 Fscsimilc 714_546_9036 FACSIMILE TRANSMISSION DwTE: 1iSCSMBBR 30. 2003 To: Nwzv1E I F.nX No. 1 P"oNe No. Bruce Sample, Ssq- (562) 430-5117 (4 362) 493-41 FRoea: M_ Katherine Jenson - 119 RE' JclFerson 3treec Wldening - PLase 11 CUEN-P/MAT'['E+R No.: 015610-0008 NUMBER OF Pw GE'..i. 1NCLUOING COVER: 6 ML�SS^C—1 Please call ■na to discuss the attached_ TION IcONTAiNfD IIV THJa F^CzIMILS MSSSAOR in lv.,MNOSD FOR TN6 Uu6 OF THFa I7.7DIV lOUwL OR YNTI'CY 'Iu ODR.[fSSED, wI.10 Mwv CONTw/TT SNFORMwTION lrza^T IS PRIVILEGED wND COLYFaOEN'T1wL. IF THE RSwDBR OF THIS UT TI-&. INTIIN D6D RK1PJaEN'I' OR A08N'1 KHbI'ON�f 119LE 7'O D13LIY EK '1T1� M6SSAGfc 'f0 'itiE LNT8ND8D RL-CiY/BNT. israY NOTIast. PI FaED TIIAT wNY DiSSE1�+INwTION. DISTRIS VTION OR COPY IIVG OF THIS COMMLTNiCATTON IS STRICTLY TH78 OR :4IN MKSYA06 TO VS A� liQ wH0V 61OADDRI" sR 1w Tait SE POSTwL SEA"Cxrwy us VIICHE TIL-741C YOV. a�Te�v MY TELL�PFIONO 1Ytheca_jm—os— tM, Fu..'R:++++m. 1Pis ♦-u1171+.e4 L.3100. E: .225 1185 � 01 .12,34 •+ss�s o7 .1m.aaos 91 651 can firmatian Report —Memory Send Time Dec-31-03 07:07am Tel line 1 714-546-9035 Tel line 2 714-546-9035 Name RUTAN & TUCKER,LLP Job number 533 Date Dec-31 07:02am To 21656#915624305117 Document Pages 06 Start time Dec-31 07:02am End time Dec-31 07:07am Pages sent 00 Job number 533 *** SEND FA I LED *** RUTAN BzTUCKER LLP Attorneys at Law 611 I►saton Boulevard, 149h Floor Costa Massa CaU:Foralaa 92626-1931 Mailin8 ^.04drass: Posc Office Box 1950, Coscs "comm. California 92628-1930 Telephsane: 714.641_5100 Facsimile 714_546_9035 FACSIMILE TRANSMISSION DATE: DSCEM+ssR 30. 2003 i o NwME Fwx No. PtiOlvE No. Srucr Sampla Esq C5623 430-5117 C5623 493-4456 Fisolv�: M. Katberiae Jensoa - 119 1ZE- Je!lCrsoa Street Widenln8 - Phase II CLIENT/MA'7"['ER NO.: Ol S610-0008 NUMSfiR OF PAGES. Il SCLUDINC'3 COV SA: 6 please call me to discuss the attached_ W HElCH IT ICY wDDAE53 uTwND MAY ONTAIN LN FORMA lON 'fa1wT 5`PRaV[1.EGL^P AND CgNF[P6N £V.L�[iP'THK N.EwPER [aF 7'H1S Y[OU wRE H6RS's8Y NOF1EP TNwf wNY PI:[�[Q[N [1Vw'T[JRNE, D9TR[aLEa'tON OR PY[NG OP TH[S COMM N�x-'roN +snSTR[CTLY wNP R6YURN TH6 uK G[NAtE. M SSAG]'s TU VS AT THS wBOV E APLI ESS�A-THL' sr Y7"AL SERr�iC kE T[i 7V K YOU. ��~'[ONS if s.+sre:.rs prot+��**•• r.es,.t�S u..s Fax 'IYai.Ym.va, P. earl 77♦ 64[ 3[UO, ate. l2}3. IL --000S ♦.o MSaS.01 77/9U/03 92 6J2 Confirmation Report —Memory Send Time Dec-31-03 09:17am Tel line 1 714-546-9035 Tel line 2 714-546-9035 Name RUTAN & TUCKER,LLP Job number 537 Date Dec-31 09:12am To 2#869#915624305117 Document Pages 06 Start time Dec=31 09:12am End time Dec-31 09:17am Pages sent 00 Job number 537 *** SEND FA I LED *** RUTAN Alk TUCKER LLF' Atsoroeys'as Law 611 Aston Soulaward, 14th Floor Costa Mesa CaallTornia 92426-1931 MaUinB Address: Post 10MCO Box 1950. COSta Mesa. CalitorJois 92628-1950 Telephone: 714_641.5200 Facsimile 714.546_9035 FACSIMILE TRANSMISSION DATE: DBC6M861t 30. 2003 Mail: NO NAME FAX NO. PHONE NO. ---d Bruce Sample, Esq. 1 (562) 430-5117 1 (562) 493-4456 FROM: M. lcmtherlaae Jenson - 119 JeMerson Street Wldeoiag-- ]Phase II CL1EN'T/MwTTPA NO.: 015610-0008 wumajeR OF PAOSS, 1NCL1lDINO COVER= 6 MEsswos- Please call me to discuss the atTacLed. 1 HYe CN FORMAT{ON CUN'1'AilVEO M Tli{� Fwt:alMlLL MESSAOfi !J: AN1'TeNDEO FOR THE Vsfi t3F 7'HS INDJVlOUA{. OR Ja".14"" "ro yV TiiL'H lT i4 wODRESJifiD, AND MAY CONTA{N INY+OKMA'tION THAT AN PJi1V ILf�G80 AND CONF1DfiNTlAl IF TlIE READER OF lH1S rtHSSAOE as NOT THE INTPN OiY>t It.GCBtENT OR AC►NT 0.63PONSIBLE TO IUEtlVElR Tits MESsAUE TO TL•P iNTBNDED "L'LP&S14'1'. YOtJ wA8 l•tSitEHY NO'1'JFLL'O TWAT wNY OlSSEM{NATTON. OlS1'RLiUTtON OR =GeV lVO OF T1t1S L`O•d TNVNJCA'f ION 1S STTITCTLY ANDREJTIJO. Tv " xtl --1 M6JslAOfi.i'O VS ATO TMEIAHOVF ADDRE:i ATJ-!L•VlE r406. fiRVICEt OT --Ic YOU TELIPRONE It [hart arc pr hlsn,r wi—nl/ th.a Fax Tran>rrn gull please call 714 041 5100. £a1. 1235 1 I wu l.S& 1 :_1J0011 .wages O, 12/30/03 93 653 j 94 654 ATTACHMENT 4 Westward Ho Property Owners' Association G„ `,W o• La Quinta City Council Members Ck An From: Jefferson Street Property Owners Date: 7 c" 3=b NO ti Dear Council Members; The property owners on Jefferson Street that will be attr"ted by the road widening, wish to bring this informative letter to the attention of the La Quinta City Council. Cduf � v rn rn s rn 0 There are i & homes and SS lots between the wash and Westward Ho Drivg. The names that appear below have stated they prefer to have their homes and lots purchased by the City under Eminent Domain. The owners on both sides of Jefferson Street�have shown a majority of signatures below. This fact would make the case for widening the street equally on both sides rather than bend it either way. 1. Name Addre 2. Name Addre 3. Name_ Address 4. Nam Add S. Name Addr4 6. Name Addre 7. Name Addre ,.,:.. - . .. . • i\ /� • /\ten � �► � // 7 A\ ^I /'7 (1'1 C 1 . G55 95 1:3 Westward 146 Property Owners, Association c S. Name acL4 A lewf4er m-)' Address 4/,# ') -W,rl-/ 9. Name I Addre 10. Nam Adds 11. Name Address 12. Name Addr 13. Name Addri 14. Name Address tw Address -'/ /,. V 16. Name Address 17. Name Address 18. Name Address K-1 6-36 .79860 Fiesta Drive * la Quinta, CA 92253 e (619) 347-8351 n wd GC:Z #OILL/l sYA3nx ATT E PAr 96 6 01/92/2004 12:50 FAX 7807771233 LA QUI.NTA COMM. OEV. KATHY JENSON Q 002/004 ATTACHMENT 6 PLANNING COMMISSION RESOLUTION 2003-059 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING FINDINGS OF CONFORMITY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 05402, FOR A POTENTIAL ACQUISITION OF PROPERTY FOR THE WIDENING OF JEFFERSON STREET. GENERAL PLAN CONFORMITY FINDING APPLICANT: CITY OF LA QUINTA WHEREAS, said Section 65402 requires the jurisdiction's planning agency's (i.e., Planning Commission) review and report upon whether the proposed acquisition of real property for public purposes Is consistent with the adopted General Plan; and WHEREAS, the Planning Commission of the City of La Quinta, California did on the 12th day of August, 2003, hold a pubic meeting to consider a finding of conformity with the General Plan for said potential Project Site, more particularly described as, APN: 649-071-008 THROUGH 021 AND 029; 649-090-001 THROUGH 009; AND 649-141-001 WHEREAS, the Planning Commission did make the following findings of conformity with respect to the proposed project: The proposed acquisition is in conformance with the La Quinta General Plan, as follows: 1. LAND USE ELEMENT: The recently adopted General Plan Land Use Element designates the properties as Low Density Residential (LDR), up to four dwelling units per acre. The Element indicates the need to maintain compatible high quality land uses. The widening of Jefferson Street will not alter the surrounding land use designations, and is consistent with the Element. 2. CIRCULATION ELEMENT: This Element designates Jefferson Street as a Major Arterial Road with a 120 foot width right-of-way. This project will allow the street to be expanded to comply with this Element. 3. OPEN SPACE ELEMENT: No key planning issues or policies are identified. 4. PARK AND RECREATION ELEMENT: No key planning issues or policies are identified. 97 658 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. BEV. + KATHY JENSON IM 003/004 Planning Commission Resolution 2003-059 Jefferson Street Widening . General Plan Conformity Finding , Adopted: Auguat 12, 2003 Page 2 S. ENVIRONMENTAL CONSERVATION ELEMENT: No key planning issues or policies are identified. 8. NATURAL RESOURCES: This Element provides several policies and programs designed to protect and preserve the unique and/or valuable resources, including biologic resources. The properties at issue are disturbed. To the extent applicable, this project will be subject to the requirements of the Coachella Valley Fringe -Toed Lizard Fee Mitigation Program and other applicable mitigation measures. 7. INFRASTRUCTURE AND PUBLIC SERVICES ELEMENT: No key planning issues or policies are identified. 8, ENVIRONMENTAL HAZARDS ELEMENT: This Element indicates that the site is within an area that is susceptible to wind-blown sand, collapsible soils, potential liquefaction hazard, and seismically induced settlement. If the properties are acquired, the widening of Jefferson Street will meet all applicable engineering requirements, and the street and landscape improvements will reduce the potential for blowsand In the vicinity of the subject property. 9. CULTURAL RESOURCES ELEMENT; No key planning issues or policies are Identified. 10. HOUSING ELEMENT: As a result of widening Jefferson Street the project requires acquisition of residential and vacant lots. Acquisition of the residential properties will not displace substantial numbers of people or existing housing, and will not necessitate the construction of replacement housing elsewhere, because the acquisition involves a relatively small number of properties and the current housing conditions reveal that there is more than adequate existing housing In La Quints to accommodate the displaced households. Likewise, state mandated relocation benefits will be paid to applicable displaced persons in accordance with the Uniform Relocation Assistance & Real Properties Act of 1970, as amended, and owners of the residential property will be compensated fair market value for their property,. determined on the basis of the highest and best use. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quints, California, as follows: 1. That the recitations are true and constitute the findings of the Planning Commission in this case; and P:l0scarlResoiut1onslreso jefforson st,doo 98 6-09 01/22/2004 12:51 FAX 7807771233 LA QUINTA COMM. BEV. i KATHY JENSON IM 004/004 Planning Commission Resoluden 2003.069 Jefferson Street Widening - General Plan Conformity Finding Adopted: August 12, 2003 Page 3 2. That it does hereby adopt this finding of conformity for the reasons set forth in this Resolution, and as shown on the Map attached hereto as Exhibit "A". PASSED, APPROVED and ADOPTED at a regular meeting of the Le Quinta Planning Commission held on this 12th day of August, 2003, by the following vote to wit: AYES: Commissioners Abele, Daniels, Tyler, and Chairman Kirk NOES: None ABSENT: Commissioner Quill ABSTAIN: None DIRK, Chairmen of La Quinta, California ATTEST: RY HLyRMAN, Community Development Director of La Quinta, California PA0ecer\f1eso1ut1ons\reso Jefferson st,doc 99 660 COUNCIL/RDA MEETING DATE: T4tyl 4 Q9&& AGENDA CATEGORY: February 3, 2004 BUSINESS SESSION: ITEM TITLE: Public Hearing to Consider Adoption of a Resolution Declaring the Public Interest and Necessity of Acquisition of Property Located at 46-235 Jefferson Street, La Quinta, California (APN 649-071-015), for Jefferson Street Improvements, Phase II, Highway 1 1 1 to Indio Boulevard, Project 2000-19 RECOMMENDATION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of property located at 46-235 Jefferson Street, La Quinta, APN 649-071-015, for the purpose of improving Jefferson Street. FISCAL IMPLICATIONS: The appraised fair market value of the property proposed for acquisition is $252,000. The property owners will not be entitled to relocation benefits since they do not reside at the property. Additional costs will be incurred in legal fees, appraisal fees and court costs relating to the initiation of eminent domain proceedings if the Resolution is approved and the matter proceeds to court. The proposed Jefferson Street Phase II improvements are funded in accordance with the Reimbursement Agreement and Memorandum of Understanding between the City of La Quinta, the City of Indio, the County of Riverside, and the Coachella Valley Association of Governments ("CVAG"), as amended. The overall project costs for the Phase II improvements are estimated at $16,700,000. ,CVAG has agreed to pay 75% of these costs. The remaining 25% will be paid by the jurisdiction in which the improvements are constructed. The City of La Quinta's funding contribution (25% of the project costs within its jurisdiction) is estimated at $2,797,250. Of this amount, the City has been provided a credit in the amount of $963,000 from State Transportation Improvement Program funding obtained by the City to offset the costs fj�i of the newly included bridge across the Whitewater River. The City has also been provided a credit in the amount of $1,647,184 as repayment for the regional share advanced by the City for the Washington Street Improvements. The City shall be responsible for repaying any balance of its portion of the proposed improvements minus its credit in the amount of $2,810,184. Considering the City's estimated costs are $2,797,250, the City's out-of-pocket share will be approximately $186,466. However, the City's actual contribution will be calculated based upon the project's final costs. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff proposes, for the City Council's consideration, and recommends approval of, a Resolution of Necessity to authorize acquisition of the property located at 46-175 Jefferson Street, within the city limits of the City of La Quinta. The property is to be utilized for the widening of Jefferson Street, Project 2000-19. This property was appraised by Michael A. Scarcella, MAI, of Capital Realty Analysts. Mr. Scarcella reviewed the applicable market data, identified and analyzed relevant comparable sales, and issued his opinion that, as of the date of value (June 10, 2003), the fair market value of the property was $252,000. A legal description of the property referenced in the proposed acquisition is attached to the Resolution as Exhibit A. Staff obtained title information reflecting the vesting of the property from Chicago Title Company, and an offer to purchase the property for the full amount of the appraised value was sent to the record owners on July 30, 2003. The offer letter transmitted all comparable sales upon which the appraiser based his opinion of value and the relevant parts of his appraisal report. A copy of the offer letter is provided as Attachment 1. Staff, the City's right-of-way consultant (Overland, Pacific & Cutler, Inc.), and the City Attorney have communicated with the owners and their legal representative in an attempt to review any information the owners may have regarding value, and to work towards the goal of reaching an agreement on the transfer of the property by way of a negotiated acquisition. As of the date of this report, no such agreement has been reached. As such, staff is now recommending the City Council consider and adopt a Resolution of Necessity, authorizing acquisition of the property by exercise of eminent domain. 2 G 6 21 Under Code of Civil Procedure Section 1245.220, the City may not commence an eminent domain proceeding until the City Council has adopted a "Resolution of Necessity." As a part of the Resolution, the City Council must find and declare each of the following: 1. The public interest and necessity require the proposed project. 2. The proposed project is planned or located in the manner that would be most compatible with the greatest public good and the least private injury. 3. The property described in the Resolution is necessary for the proposed project. 4. An offer meeting the requirements of Government Code Section 7267.2 has been made to the owner of record. The owners of the property are entitled to be heard on this subject, and on the issue of whether the City has followed all other procedures and is otherwise authorized to acquire the property by exercise of eminent domain. Notice to the property owners of this Resolution of Necessity hearing, and the subjects to be considered and proposed to be determined, was sent to the record owners on December 29, 2003. A copy of this notice is provided as Attachment 2. As of this date, the City has received no response from the property owners relating to this hearing. The Public Interest and Necessity Require the Proposed Project The acquisition of the property is proposed for the Jefferson Street Improvement Project, Phase II, Highway 111 to Indio Boulevard. The project will include the widening of Jefferson Street from two lanes to a six -lane, arterial highway, with a typical 120' cross-section. A diagram showing the extent of the project is submitted herewith as Attachment 3. Staff believes that the public interest and necessity require the Jefferson Street Improvement project. A traffic analysis was conducted by Mr. Robert Ross, P.E., of RBF Consulting, a copy of which is included as Appendix 8.1 of the 1999 Initial Study/Mitigated Negative Declaration for the project, which is being transmitted to the City Council . under separate cover. Pursuant to the Coachella Valley Area Transportation Study, the Valley is one of the fastest growing areas in Southern California, and is expected to increase to over 312,000 by the year 2010. The project is necessary to accommodate the projected growth and population increase and to accommodate safe traffic movements. Staff concurs with Mr. Ross' assessment. K3 663 The Proposed Project Is Planned Or Located In The Manner That Will Be Most Compatible With The Greatest Public Good And The Least Private Injury The improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway, providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The widening of Jefferson Street is designed to relieve regional traffic congestion and improve the capacity of the street, which will require continuity in the roadway alignment and traffic handling capacity of the street. The project also improves an important linkage to Highway 1 1 1 and the 1-10 for existing and proposed residential, commercial and resort uses in La Quinta and Indio. The project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including enhanced safety during flood events. In addition, the bridge will provide additional opportunities for wildlife movement and habitat access. The project will result in the least private injury because the right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from the roadway. On January 22, 2003, the City received a petition signed by many of the affected property owners. The petition was in support of the chosen alignment. The persons signing the petition indicated that they preferred to have the symmetrical widening of the roadway, and that they "prefer[ed] to have their homes and lots purchased by the City under Eminent Domain." A copy of the petition is provided as Attachment 4. These facts support the finding that the project is designed in a manner compatible with the greatest public good and the least private injury. The Property Described In The Resolution Is Necessary For The Proposed Project As is shown on Attachment 5, the proposed widening of Jefferson Street would require that the right-of-way extend right up to the single-family home on the subject property. It would not be practical or safe to widen Jefferson Street without acquiring the subject property and demolishing the home. Acquiring the property is therefore necessary for the project to proceed. Other Requirements The project has been reviewed and approved under the California Environmental Quality Act ("CEQA"). Originally, the project was reviewed in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66. 4 664 On August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements. On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21 152 of the Public Resources Code. In considering the Resolution of Necessity, the City Council should consider the environmental information contained in the Addendum, along with information in the 1999 IS/MND. Both documents have been distributed to the City Council under separate cover. In addition, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003- 059 reflecting such findings. A copy of that Resolution is provided as Attachment 6. Lastly, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development as required by law. Therefore, all of the legal prerequisites to the adoption of a Resolution of Necessity have been satisfied. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and adopt a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-235 Jefferson Street, La Quinta, APN 649-071-015, for the purpose of improving Jefferson Street; or E 665 2. Conduct a public hearing and do not adopt of a Resolution of the City Council declaring the public interest and necessity of the acquisition of the property located at 46-235 Jefferson Street, La Quinta, APN 649-071-015, for the purpose of improving Jefferson Street; or 3. Provide staff with alternative direction. Respectfully submitted, . TL PJ:4�� mothy 4i— ona n, P.E. ublic W s Director/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Offer letter 2. Notice of Resolution of Necessity Hearing dated December 29, 2003 3. Project Diagram 4. Petition of Jefferson Street homeowners dated January 22, 2003 5. Property Area Map 6. Planning Commission Resolution No. 2003-059 666 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DECLARING THE PUBLIC INTEREST AND NECESSITY OF ACQUISITION OF PROPERTY LOCATED AT 46-235 JEFFERSON STREET, LA QUINTA, CALIFORNIA (APN 649-071-015) FOR JEFFERSON STREET IMPROVEMENTS, PHASE II, PROJECT 2000-19 WHEREAS, the City of La Quinta has been investigating potential acquisition of property located at 46-235 Jefferson Street, in the City of La Quinta, bearing Riverside County Assessor Parcel No. 649-071-015, and more specifically described in the legal description attached hereto as Exhibit "A," which is incorporated herein by reference ("Property"); and WHEREAS, the City has been investigating potential acquisition of this Property for the widening of Jefferson Street, specifically the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 ("Project"); and WHEREAS, on February 3, 2004, after no less than 15 days written notice to the record owners of the Property, as shown on the title information obtained by the City, and the last equalized assessment roll, the City Council of the City of La Quinta held a public hearing for the purpose of considering, and allowing the record owners of the Property a reasonable opportunity to appear and be heard on, all of the following matters: A. Whether the public interest and necessity require the Project; B. Whether the Project is planned or located in a manner that is most compatible with the greatest public good and the least private injury; C. Whether the Property proposed to be acquired is necessary for the Project; D. Whether the offer required by Government Code § 7267.2 has been made; and E. Whether the City has properly exercised all of its statutory responsibilities and duties antecedent to the legal exercise of eminent domain against the Property; and 119/015610-0008 7 6 6 471134.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 2 WHEREAS, the City Council has received various factual information bearing upon each of the matters referenced above, including but not limited to, the representations made within, and evidence attached to, the staff report prepared by staff for consideration in connection with the hearing; and WHEREAS, the City Council, as a result of such hearing, has determined that the public health, safety, and welfare require that the City acquire fee interest in the Property for the purposes of the widening of Jefferson Street; and WHEREAS, the Project was originally reviewed and approved under the California Environmental Quality Act ("CEQA") in the 1999 Initial Study/Mitigated Negative Declaration SCN 99031046 ("1999 IS/MND"), which was certified by the City Council on May 18, 1999, in City Council Resolution No. 99-66; and WHEREAS, on August 19, 2003, the City Council adopted Resolution No. 2003-076, wherein it certified an Addendum to the 1999 IS/MND. The Addendum updated the information about the project and found that the project will cause no effects on the environment that cannot be reduced to a level of insignificance based on the mitigation measures adopted in connection with the 1999 IS/MND. The Addendum further supports that the project modifications that have occurred since 1999 would not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition of right-of-way and the construction of the proposed roadway improvements; and WHEREAS, on August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk, in compliance with Section 21152 of the Public Resources Code; and WHEREAS, in considering the Resolution of Necessity, the City Council has considered the environmental information contained in the Addendum, along with information in the 1999 IS/MND; and WHEREAS, on August 12, 2003, the Planning Commission considered whether the potential acquisition of the properties along Jefferson Street was consistent with the City's General Plan, in accordance with Government Code Section 65402. The Planning Commission concluded that the acquisitions of the properties would be in conformity with the General Plan, and adopted Planning Commission Resolution 2003-059 reflecting such findings. WHEREAS, on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase ll, La Quinta, California, prepared by 119/015610-0008 $ 668 471134.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 3 Overland, Pacific & Cutler, Inc. The Relocation Plan has been transmitted to the California Department of Housing and Community Development. WHEREAS, the City of La Quinta is authorized to acquire the Property for street improvement purposes under the authority of its own charter, and under the authority granted by Government Code Sections 37350.5 and 40404. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: 1. The recitals set forth correct are true and correct and are adopted as the findings of the City Council. 2. The Project for which the acquisition of the Property is required is the Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard Project. The project will include the widening of Jefferson Street from two lanes generally to a six -lane, arterial highway, with a typical 120' cross-section. 3. The Property to be acquired is located within the City of La Quinta, County of Riverside, State of California, located at 46-235 Jefferson Street, in the City of La Quinta, bearing Assessor Parcel No. 649-071-015. The Property the City seeks to acquire consists of fee simple title to approximately 7,841 square feet of land, more specifically described in the legal description attached hereto as Exhibit "A". 4. The public interest and necessity require the Project, in that it is consistent with the City's General Plan, and specifically the City's Circulation Element. The City Council hereby adopts the finding set forth in Planning Commission Resolution 2003-059. Pursuant to the Coachella Valley Area Transportation Study, the Valley's population is one of the fastest growing areas in Southern California and expected to increase. This project is necessary to accommodate the projected growth and population increase and accommodate safe traffic movements. 5. The Project is located in a manner most compatible with the greatest public good and the least private injury, in that the improvements will include the widening of Jefferson Street from two lanes to a six -lane arterial highway providing much needed additional traffic handling capacity over the Jefferson Street arterial to accommodate both present and future traffic demands. The proposed Project will also widen and construct a multiple span, all weather bridge over the Whitewater River that will provide greater vehicular safety, including during flood events, and providing additional opportunities for wildlife movement and habitat access. The proposed Project will result in the least private injury because the 119/015610-0008 9 471134.01 a01/28/04 660 60 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 4 right-of-way being acquired is limited to properties immediately adjacent to the existing roadway, and includes full acquisition of potentially affected residences to minimize potential impacts from roadway construction and operation of habitable structures. The Project is designed in a manner compatible with the greatest public good in that the Project will involve road widening so as to improve an important link between Highway 1 1 1 and 1-10. 6. The Property to be acquired is necessary for the Project, in that the Project is designed to relieve regional traffic congestion and improve the capacity of the street which will require continuity in the roadway alignment and traffic handling capacity of the streets. 7.. Portions of the Property sought to be acquired include area outside of the proposed alignment of the Project's proposed roadway and public right-of-way improvements. Pursuant to Code of Civil Procedure sections 1240.410, the City Council finds that such property will be left in such size, shape, or condition to be of little market value, and this constitutes a remnant whose acquisition is authorized under the above -referenced statute. This remnant finding is supported by a petition submitted to the City through the course of project planning, requesting selection of the project design alternative which resulted in full acquisitions as currently planned for the Project. 8. The offer required by Government Code Section 7267.2 has been made to the owner of record, by way of a letter dated July 29, 2003. City staff has attempted to negotiate with the record owners and their representatives subsequent to the issuance of this offer, but the negotiations have not proved successful in securing the necessary property interests. 9. Notice of the resolution of necessity hearing was provided to the owners of record by way of mailed, written notice sent on December 29, 2003. 10. To the extent any of the Property to be taken herein is devoted to a public use, the City finds that the proposed use for the Property is compatible with, or more necessary to, such public use, and that the City is authorized to acquire the Property pursuant to Code of Civil Procedure Section 1240.510 and 1240.610. 11. The City Council hereby declares its intent to acquire fee simple ownership of the Property, more specifically described in Exhibit "A" hereto, in the City's name in accordance with the provisions of the laws of the State of California. 12. The Project has been reviewed and approved under CEQA through the 1999 IS/MND and the Addendum thereto. The City finds that as reflected in the 119/015610-0008 10 471134.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 5 Addendum, that there have been no subsequent changes with respect to the circumstances under which the Project is to be undertaken, no new information of substantial importance regarding significant effects or mitigation measures or alternatives which has become available, and no subsequent changes have been proposed in the Project which would require further environmental review. 13. The law firm of Rutan & Tucker, LLP, City Attorney for the City of La Quinta ("City Attorney"), is hereby authorized and directed to prepare and prosecute in the name of the City such proceedings in a court having proper jurisdiction thereof, as may be necessary for the acquisition of the Property described herein, including without limitation, seeking prejudgment possession of such Property, and to prepare and file such pleadings, documents, and otherwise prosecute such actions as may be necessary in the opinion of the City Attorney to acquire the Property for the City. Such attorneys are specifically authorized to take whatever steps and/or procedures as are available to them under the Eminent Domain Law of the State of California, relating to acquisition of the Property. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3rd day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD 0. ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: 119/015610-0008 11 671 471134.01 a01/28/04 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 6 M. KATHERINE JENSON, City Attorney City of La Quinta, California 119/015610-0008 471134.01 a01/28/04 1 672 City Council Resolution 2004- Jefferson Street Widening - Resolution of Necessity Adopted: February 3, 2004 Page 7 EXHIBIT "A" The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 24 Of Tract 2190, As Per Map Recorded In Book 41 Pages 55, 56, And 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-071-015 119/015610-0008 471134.01 a01/28/04 1 673 • ATTACHMENT P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 July 29, 2003 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. and Mrs. Milan Nikolich 46235 Jefferson Street La Quinta,' California 92253 (760) 777-7000 FAX (760) 777-7101 Mr. and Mrs. Milan Nikolich 82667 Sky View Lane Indio, CA 92201 Re: Offer to Acquire Property Located at 46235 Jefferson Street, Riverside County Assessor Parcel No. APN 649-071-015 Dear Mr. and Mrs. Nikolich: The City of La Quinta (the "City") is proposing the construction of a widening and improvement of Jefferson Street, within the City. The City understands you are the vested owners of the above -referenced property. The City seeks to acquire the fee simple interest in the property, more particularly described as 46235 Jefferson Street, Riverside County Assessor Parcel No. APN 649-071-015 as shown on map attached hereto as Attachment "A", which is made part of this offer by reference (the "Property"). This letter contains an offer by the City to acquire the Property, and the terms and conditions on which it proposes to do so. No final determination has been made at this point by the City as to the ownership of the Property. The City is in the process of securing information from a title company which will assist in determining exactly who the current owners are, and what other persons or entities may have lease, financing, or other interests in the property. Any acceptance of this offer is contingent upon your presentation to the City of conclusive evidence that all parties with interests in the Property (including, but not limited to, lessees, licensees, lienholders, etc.) have accepted this offer, and agreed on how the proceeds for the acquisition of the Property shall be distributed. The City had the Property appraised to determine its fair market value. The appraisal was conducted by Mr. Michael Scarcella, MAI, of Capital Realty Analysts, in accordance with commonly accepted appraisal standards, and included consideration of the highest and best use of the land. Mr.. Scarcella previously corresponded with you, offering to meet with you on his inspection of the Property, and inviting you to provide information regarding the Property. Based on the appraisal, the City offers to purchase the Property (free and clear of any encumbrances to title such as liens, leases, licenses, or other interests which, in the City's 119/015610-000s 419357.01 a07/30/03 14 �� 674 Mr. and Mrs. Milan Nikolich July 29, 2003 Page 2 discretion, are unacceptable) for TWO HUNDRED FIFTY-TWO THOUSAND DOLLARS ($252,000.00) (the "Purchase Price"). The basis for this offer is explained more thoroughly in Attachment B of this letter. Attachment `B" is a copy of the appraisal report prepared by Mr. Scarcella, containing the data and pertinent discussion relative to how he determined the fair market value of the Property. It is made a part of this offer by reference. This offer is for conveyance to the City of a fee interest in the Property, excluding any oil, gas, or mineral rights below the depth of 500 feet, and subject to terms and conditions set out below. Payment will be made when the title to the Property vests in the City free and clear of all recorded or unrecorded liens, encumbrances, assessments, leases and taxes, except: 1. Taxes for the year in which the Property is purchased, which shall be cleared and paid in the manner required by Section 5086 of the Revenue of Taxation Code, if unpaid at the time escrow closes; 2. Covenants, conditions, restrictions and reservations of record, that do not interfere with the City's proposed use of the Property, as determined by the City; 3. Easements of rights -of -way over the land for public or quasi -public utility or public street purposes, if any; and 4. Any other interests in the Property or exceptions to title appearing on a preliminary title report or litigation guarantee, which are accepted by the City in writing through escrow. It shall be your responsibility to convey clear title, and to pay any fees or charges by lenders or other parties in obtaining reconveyances or other items necessary to convey clear title. As a condition 6f this offer, the City reserves all rights and remedies it may have against you, and all prior owners, to seek damages or other remedies in connection with any remediation or other obligation the City incurs as a result of any contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. Sub -Section 9601 et seq.), the Hazardous Waste Control Law, California Health & Safety Code (Section 25100, et seq.) the Porter Cologne Act (California Water Code Section 13000 et seq.) California Health & Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. In addition, any final transfer of the property, and payment of the purchase price, will be conditioned on the City's filing of a Notice of Determination with the County Clerk approving an Addendum to the Initial Study/Mitigation Negative Declaration for the Jefferson Street Improvements, at least thirty-five (35) days prior to close, and no judicial or administrative challenges having been presented or filed against the findings made therein as of the date of closing. The City will pay all escrow and recording fees incurred in the purchase of the Property, and if title insurance is obtained, the premium charge for such title insurance. 675 119/015610-0008 15 419357.01 a07/30/03 • Mr. and Mrs. Milan Nikolich July 29, 2003 Page 3 Please be advised that the amount paid to you pursuant to this offer, if it is accepted, may be eligible for favorable tax treatment under Internal Revenue Code Section 1033, relating to acquisitions under "threat of condemnation," providing you purchase qualified replacement property within the time periods set forth under law. The IRS has literature explaining the details of this favorable tax treatment, which you may wish to consult. In addition, Section 2(a) of Article XIIIA of the California Constitution and Section 68 of the California Revenue and Taxation Code generally provide that property tax relief shall be granted to any real property owner who acquires comparable replacement property after. having been displaced by governmental acquisition or eminent domain proceedings. The State Board of Equalization has prepared guidelines on those matters, which you also may wish to consult.. Please contact our relocation consultants, Bob Stoddard or Kathy Woolley, at (760) 772-4255, if you would like any assistance in obtaining materials from the IRS or the State Board of Equalization on these matters. Please note that effective August 1, 2003, the new telephone number for these consultants will be (760) 776-1238. In addition to the compensation for the fair market value of the property, you may also be entitled to relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title 25), or local relocation guidelines. Relocation assistance is not a part of this offer. If you would like to inquire further regarding your eligibility for relocation assistance, please contact Bob Stoddard or Kathy Woolley, at the number listed above. Please be advised that California Code of Civil Procedure Section 1263.51.0 allows a party whose property is subject to public acquisition to claim compensation for loss of business goodwill. The Property does not appear to be the site of any presently operating business. As such, this offer does not reflect any amount of compensation attributable to any loss of business goodwill. If you believe loss of business goodwill should be considered by the City in connection with the proposed acquisition of the Property, attached to this letter is a "Notification of Right to Claim Loss of Business Goodwill," a "Claim for Loss of Business Goodwill," and a "Loss of Business Goodwill" questionnaire. These materials explain in further detail the provisions of Code of Civil Procedure Section 1263.510, and explain what the owner of a business must prove in order to be compensated for business goodwill losses. If you wish to make a claim for loss of goodwill, the City requests that you review and complete the forms attached. Please let us know as soon as possible if the Ows offer is acceptable. This offer shall expire if it is not accepted on or before one hundred and twenty (120) days from the date it has been mailed to you. If this offer is acceptable to you, please so indicate to the undersigned, in writing. Upon receipt of your written acceptance, a Purchase and Sale Agreement incorporating the terms of this offer, and containing further escrow instructions regarding review and elimination of exceptions to title, will be forwarded to you for signature. Upon receipt of a signed Purchase and Sale Agreement, the matter will be reviewed by City Council, which has 119/015610-0008 16 676 419357.01 a07/29/03 Mr. and Mrs. Milan Nikolich July 29, 2003 Page 4 final approval authority. If the deal is approved by the City Council, escrow will be opened immediately. The City generally uses First American Title Company to handle escrows, and proposes this company handle any escrow here. The City is, of course, willing to consider other escrow companies, if you so desire. If for any reason you are not satisfied with this offer of just compensation, and have relevant information regarding the value of the Property that you would like the City to consider, it will be happy to do so. If you have such information, please contact me immediately and I will make arrangements to have the information reviewed and considered. If you have any questions regarding this offer, or wish to request any additional information, you may contact Kathy Woolley or Bob Stoddard at the above numbers. Please note that the City has made no decision to exercise its power of eminent domain to acquire the Property, and can only do so after it holds a hearing at which the affected property owner(s) have had an opportunity to appear and be heard. The City much prefers to accomplish its property acquisitions by way of negotiated transactions, and toward the end of doing so with respect to this Property, would be more than willing to meet with you to discuss this offer, or any related matter. If for any reason you should see fit not to accept the City's offer, please be advised that this letter, the offer made herein, the Attachments, and all matters stated herein are made under the provisions of Evidence Code §§ 1152 and 11.54, and shall not be admissible in evidence in any proceeding which may be instituted relating to the acquisition of the Property, or in any other action. We hope this offer meets with your approval. As stated, our relocation and acquisition consultants, Bob Stoddard or Kathy Woolley, will be happy to meet with you to discuss the Property, the offer, or any related matter, and will attempt to contact you soon. If you need additional information, please call me at the number referenced above. Thank you. Very truly yours, CITY OF LA UINTA +' . Ka erine Jenson Attorne Y City of La Quinta 119/015610-0008 � 419357.01 s07/29/03 17 l Site Analysis Subject Plat Map APN 649-07, Riverside County, CA A • r w J -- O F A!r « p e4 A I M� I� u U Ari O � Y = 'SMIMW (31)- .......... CAPITAL REALTY ANALYSTS REAL ESTATE APPWSM 9 AMLYSTS 0 8 VW'6 7 8 A Complete Appraisal Presented In A Summary Report Of The Prospective Taking Of Several Improved and Unimproved Land Parcels, Located Along The East and West Sides Of Jefferson Street; La Quinta, CA. 92253 Otherwise Known As APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quanta, Riverside County, CA. Date Of Appraisal June 20, 2003 Effective Date of Valuation June 10, 2003 Job Reference No. 03-1097 For The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calle Tampico La Quinta, CA 92253 By CAPITAL REALTY ANALYSTS MICHAEL A. SCARCELLA, MAI 19 679 Table of Contents TABLEOF CONTENTS ----- --- ...........»»»»....»»..»».....»......».......»........ ..»..»». »»...»».....»... 4 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS »...».».......».».....».»......»» ..»«....... 6 .... ... SATELLITE PHOTO (TAKEN IN 2000) ...................................................................................................10 INTRODUCTION / HISTORY OF THE SUBJECT.......................................................................................».... 1 I PURPOSEOF THE APPRAISAL.................................................................................................................... FUNCTIONOF THE APPRAISAL.............................................................. PROPERTYRIGHTS APPRAISED...................................................................................... DEFINITIONOF MARKET VALUE........................................................................................ DEFINITIONOF EMINENT DOMAIN............................................................................................. ................. ............ .......... ...... .... ..... ............ ...... 12 12 12 13 13 DEFINITIONOF CONDEMNATION............................................................................................................... DEFINITIONOF EASEMENT ................................................... DEFINITIONOF DAMAGES......................................................................................................................... DEFINITIONOF BENEFITS.......................................................................................................................... BUNDLEOF RIGHTS THEORY ............................. .............. BEFOREAND AFTER RULE................................................................................................................. SCOPEOF THE APPRAISAL ................................................................................ DATEOF VALUATION............................................................................................................................. LEGALDESCRIPTION......................................................................... ASSESSMENT & TAXATION ................................ .......................................................... ............................... ......... .... ...... .................... ... ...................... ........................ ................ ....... 13 13 13 13 14 14 14 15 15 16 REGIONALANALYSIS .... »................... ».»...»»....».»...»» .......... .............. »»»»»»...................»....».....17 CITY ANALYSIS, LA QUINTA, -22 NEIGHBORHOOD - MARKET ANALYSIS ..»»..».».»...»..................... »•»»»..»-»• 27 SITEANALYSIS.. .......................».»... ».»»............... »..»...... »... ....»....».».»............»....».............31 HIGHEST AND BEST USE ANALYSIS .».. ... »... »... ».................... »................»» •:»�-�- •-� » 41 . APPRAISALPROCESS ............ »...... .»..»»......»..»... ».............. ».... ».....»...».»....»..» ............»..».........44 SALES COMPARISON APPROACH »».»...» ...... ».......................... »..........»»»...».......»..»..........»«..» 46 LILLEY: 649-071-008 & 029.. .»..».............»..».».......... »..........................».. 50 WAH649-071-009.......».»....»......»»»...»».»...».............. ».................................. .......»...».».............. 54 PETERSON: 649-071-011..»............ »....... »...... »... »... ».»................... ».............. »»........».........:............» 60 WAGGONER: 649-071-012................... .................. ........................................ »....... ............... ............ 66 FEACK: 649-071-013................. ».......... »........... »..»..................................... .............. ......... ..»...»........» 73 ELROD: 649-090-007................. »......... ............ ......................................................... »...»»»......»......».... 79 NIKOLICH: 649-071-015 ..................... ................................. ..»...... »... »..... .....».......».......»......... 83 ROLLAND: 649-071-016....................................................................................... .......... ..........».....» 89 KRAKOFF: 649-071-017...........................................................................»...............................».»..»»»» 95 (4) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 20 680 REYNOLDS: 649-071-018..»......»......»...........................».,.,.........................,,,....,,,,,.,,,,,,,..............101 »..... ASTORGA: 649-071-019...........».................»....................»........»»»....»».»...».....................»..».......»..107 LILLEY:649-071-020..»........».».......».........»........... ..»......»......»...»...--- »---------- ......»..................113. LILLEY: 649-071-021.....»»»............».............»......».............»»........»..».»»..»..........».».......................117 MILLS: 649-090-001...»............. ..................... ...................»».......».».....»...».........»..121 CULP: 649-090-002.»..».......»»......»......................................»......................................................»....»» .127 RACKIE: 649-090-003»...».»....»»..........»...»».......»...»..»».............».....».......»»».........».............»»»...133 WALDO: 649-090-004...».... ..»»................... »........».,,,....»,,,,».....,,,,...........................»............»....».....139 HALL: 649-090-0OS»..»...............».»»..».....»..........».................»».........»...»...........»„......»..... ......145 RODRIGUEZ: 649-090-006.»....»»»...».....».»»........»..............»..........»...»...... .... »...»».................»..»..149 ZILINSKY: 649-090-007.....».».»........................»..............».................».......»»....»........».............»......155 STEDING: 649-090-008.».........»...»»...»»......»........»...»».».».».»...»»....»........».».«.».....»»...»....»..»» 159 ALEXANDER:649-090-009...........---.....»... ...»..».»......».»...».........»»........».......»»».......»..165 HENDERSON: 649-141-001....................».....»..............».«..»....................... ............».....».»...»........»..171 .............»..........»....»..»........»»..»...................».»»»»».........177 ASSUMPTIONS AND LIMITING CONDITIONS.».........» .»».» ... ».... »...............................179 CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 68 O 1 21 o e Summary of Important Facts and Conclusions Client: The City of La Quinta Attn: Mr. Tim Jonasson 78-495 Calle Tampico La Quinta, CA 92253 Intended Users: The Client Property Type: Single family homes, vacant single. family home lots, and a parking lot / putting green area Location: East and west sides of Jefferson Street, south of Westward Ho, and the NEC of Vista Grande and Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La Quinta: Riverside County, CA. Thomas Brothers Guide Reference: Census Tract Number: Tract 452.05 Type Of Report: Complete Report Format: Summary (6) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADvism 22 Summary of Important Facts and Conclusions Purpose of the The purpose of this appraisal is to estimate the just Appraisal: compensation for the part taken, in accordance with the definition of market value prescribed by the Califomia Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, . including potential use as a basis for a deposit of probable just compensation. Function of the Eminent Domain Appraisal: Date of Valuation: June 10, 2003 Date of Appraisal: June 20, 2003 Owner of Record: Preliminary Title Reports were not submitted or examined. According to public records, title to the subject parcels is vested as follows: DO APN Owner Site Address_ I 1 649-071-M Jeff L. & Patricia C. Ulley WA 2 649-071-009 Ellis &. Helen Wah 46055 Jefferson Street 3 649-071-010 Indian Springs Land Cc N/A ' 4 649-071-011 David F. & Patricia L. Peterson 46115 Jefferson Street 5 649-071-012 BIN & Suzie Waggoner 46145 Jefferson Street 6 649-071-013 Eugene T. & Card A. Feack 46175 Jefferson Street 7 649-071-014 David A. & Carol A. Elrod WA 8 649-071-015 Milan & Mile Nikdich 46235 Jefferson Street 9 649-071-016 Patsy Rolland 46305 Jefferson Street 10 649-071-017 Sheila A. Krakoff 46335 Jefferson Street 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 12 649-071-019 Ronald Asl0rga 46425 Jefferson Street 13 649-071-020 Jeff L. & Patricia C. Lilley WA 14 649-071-021 Jeff L. & Patricia C. Ulley WA 15 649-071-029 Jeff L. & Patricia C. Lilley WA 16 649-090-001 Harvey A. & Audrey R. Mills 46170 Jefferson Street 17 649-090.002 Elaine L. & Robert L. Culp 46200 Jefferson Street 18 649-090-003 Emma Radde 46250 Jefferson Street 19 649.090-004 Edward E. & Marie A. Waldo 46280 Jefferson Street 20 649-090-005 William Hall N/A 21 649-090-006 Mirta Rodriguez 46390 Jefferson Street 22 649-090-007 Charles J. & Alice S. Zilinsky WA 23 649-090.008 Sue F. Steding 46450 Jefferson Street 24 649.090-009 John D. & Jacy P. Alexander 46480 Jefferson Street 25 649-141-001 Leonard C. & Margaret R. Henderson 80020 Vista Grande (7) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 23 G 8 3 Summary of Important Facts and Conclusions According to Riverside County Assessor's P lat Maps, Site: the site sizes of the subject parcels are as follows: to APN owner She Address She Sim (SF) 649.071-008 2 649-071-M Jeff L. 8 PetriW C. Lilley Ellis 6 Helen Wall NIA 46055 Jefferson Street 5,712 9.583 3 649-071-010 4 649-071-011 Indian Springs Land Co David F. 3 Patricia L. Peterson N/A 46115 Jefferson Sb" - 11,326 8 649-071-012 Bill 3 Sums waggoner 46145 Jefferson Street 7.841 6 649r071-013 Eugene T. 3 Carol A. Fescia 46175 Jefferson Street 7.8411 1 7 649-071-014 a 649-071-015 David A 3 Carol A Elrod Milan 8 Milo Nk*ch WA 46235 Jefferson Street ,8 7.841 9 649-071-016 10 649-071-017 Patsy Rolland Shelia A. Krakoff 46305 Jefferson Street 46335 Jefferson Street 7.841 7,641 11 649-071-018 Timothy K. Reynolds 46395 Jefferson Street 7.841 12 649471-019 Ronald AsOW 46425 Jefferson Street 10.454 13 649-071-020 Jeff L. 6 Patricia C. LN19y NIA NIA. 5.663 8,712 14 649-071-021 15 649-071-029 Jeff L.8 Patrici• C. LNley Jeff L. 8 Patricia C. LAY WA 1,742 18 6494)90-001 Harvey A. 3 Audrey R. Mills 46170 Jefferson Street 7.841 17 6494W-W2 Elaine L. tL Robart L. Culp 46200 Jefferson Street 7,841 18 649-090-003 19 8494)90-004 Emma Radde Edward E. 6 Marie A. Waldo 46250 Jefferson Sbest 46280 Jefferson Street 7,841 7.841 20 649-090-M 21 849-090-006 William HsN Mirta Rodriguez I NIA 46390 Jefferson SO". 7,841 7.841 22 649-090.007 23 6494)90-008 Cherries J. & Ake S. ZNlnsky . Sus F. Slading NIA 46450 Jefferson Street 7,841 7.641 24 6494090-009 John D. 3 Jacy P. Alexander 46480 Jefferson Street 9.148 25 649-141-001 Leonard C. 3 Margaret R. Henderson 80020 Vials Grarlda IOA54 Improvement$: 17 of the subject parcels are improved with single family homes. The remaining S parcels are vacant. Zoning: According to the City of La Quinta Zoning Map, all of the subject parcels are zoned RL, Low Density Residential. The existing zoning is considered reasonable and appropriate. No change in zoning is likely as of the date of value. Highest And Best Use, Hold for investment "As Vacant": Highest And Best Use, Remain as improved "As Improved": Property Rights Fee Simple Estate Appraised: (8) CAPITAL REALTY ANALYSTS RM ESTATE APPRAISERS • ANALYSTS • ADVISORS 24 684 Summary of Important Facts and Conclusions Final Estimate Of Just 1. ON aRewid Ad*M lnipioiaa Wr"a NrW ,L1..1- ��_ Compensation: 1 = bowl-" Jeff L i POMM . uay Eft aNow Wan WA f0006J WA SAW 64wi4l0 4 64fJ)7UM awn Sorrro4 Lane GO DwM F. S PW L PMararr 46115 Ja.ra.n S.6M SFR 11.72S f 646071-12 • GOW1413 S6 i 6uAa Wagoww EuprW T. i Card A. Fade 46143 Ja.aaon S"d 46175 Ja.arm AMf SPR SPR 7JM1 TA41 . 7 64SWi. 14 • MiW71 M: DwM A i C VI A. Elrod Mayan i Mfa NWaW WA 46226 Jaf+raon 50" NOW MR 7441 7p41 f 666W1-01 Pasy RofarW aws Jal"M Sv" $we SFR SPR 7JM1 7J141 1f G"I.017 Sh91a A Krawoll 461.75 Ja.raan 3"d SPR TA41 11649w o TWofyK.Raymtla 467S6JMklr 464ffi JMlaraon 8b8d SPR 10A64 12 04WI 119 1= 6OW142D RarrW AawOa Jag L i Panda C. Lfty WA None NM kw 6.712. 4 64..0714M Jog L i PMndrC. LMy WA - WA Non 1.742 1f 6"1J129 14 646416001 Ja. L i Paaida C. Lfty Nrra7 A i AudW R. Mft 46170 Ja0aw 1 Sr.M SPR TA41 /7 640400-M EiW W L i f ~ L WP 46=00 Ja6raon iroat 4a60Ja.raonSaaal W" SPR TA41 TA41 1f 049490M tf 649400 M RadJe Ediwd L i Mart A Waldo 46260 Jaftnae s"d - SPR 7.S41, 7J41 20 64609D 006 216490906M WBMn Nat MaWRob0M WA 46=SOJafOMMS"M Nonf SFR 7A41 22 04600M Chin J. S ADS S. ZWwky Sue F. SW&V WA 46460 JaMraon SaaM NrW SFR 7A41 . TA41 . 2= 649490 6f 24 649.141.O . John D. i Jacy P. ta0A0: . 2f M.•141-001 LaorraN G i MagrM Mod"M 6002. VMf ow** SPA Personal Property: $0 (9) CAPITAL REALTY ANALYSTS REAL ESTATE APPRALSERS • ANALYSTS a ADVISORS 25 685 ' �1►- � f, yy� .Y i' t it � I , ;(j� _ r 1 1 C{ jJ ,r I r IrY td r ..1 ! � / I I d (1 ' � ,S '� 'if / �� I�• 1 s t ; .mpr. b 'Ya f� „ w6✓./�M�.z CIA IWL ref" ,. - Y, �-,� � � ► r�! �_� �Ir1 �� -"/ t LIB `� 1•�, ��., ', .:fir Ll i ` �4• L a/.•B^' I 1 / •?rya I, I :ate ., � � �'-,;,•. a�_.�s"' M1 `� rl �� 1 _ § _•, Introduction / History of the Subject The subject property includes 25 separate legal parcels, located along the east and west sides of Jefferson Street, south of Westward Ho Drive, in La Quinta,; CA. All of the parcels except 1 have frontage on the Indian Springs Goff Course. The history of the Indian Springs Country Club is described in the following sections: The property was originally developed with an 18-hole golf course and 'some residential homes in the early 1960's. Several of the subject homes were developed in the 1960's. In January 1984, One Hundred and Thirteen Corporation acquired the project for $1,595,000. One ,Hundred and Thirteen Corporation subsequently acquired additional parcels, which made up the bulk of what is now the existing Indian Springs site. The golf course was reportedly not managed or maintained up to market standards under the One Hundred and. Thirteen Corporation ownership. The facility had a poor reputation and reportedly performed well below market standards. One Hundred and Thirteen Corporation subsequently defaulted on a trust deed, and the property reverted to Diamond Benefits Life Insurance Company (In Receivership) on November 1, 1992.. . A lease agreement for the golf course and related facilities and equipment was. executed on September 29, 1994. The lessee made some improvements to the. golf course, and the golf facilities began operating at near market standards for the courses' market niche, which was at the lower end of the spectrum. In .early 1998, the Diamond Benefits Indian Springs holding was placed in escrow by Indian Springs Land Co., LLC. Indian Springs Land Co., LLC is an affiliate of Mr. Roger Snellenberger, an active subdivision developer, with several projects fully developed and absorbed in the Coachella Valley market. The escrow price was $6,353,000 (it was $8M prior to the school site sale described below). During the escrow period in 1998, Diamond Benefits sold approximately 36.5 acres of land at the SEC of Miles Avenue and Dune Palms Road to the local school district. The sale price was $1,647,000, or $45,123 per acre. In order to make up the lost land area,. the developer acquired APN's 604-062-008 and 009. Both parcels sold on 5/14/99 for $200,500 each, or approximately $42k per acre. The Diamond Benefits acquisition was completed on 1 /20/00. The sale price was $6,353,000, inclusive of the golf course. Additionally, the developer (and/or related entities) acquired a contiguous 40-acre parcel located on the SEC of Miles Avenue and Jefferson Street for $1,520,000, or $38,000 per acre. The closing date was 6/6/00. The assemblage was completed with the acquisition of a 12.5-acre parcel on 6/9/00 for $433,000, or $34,640 per acre. (11) CAPITAL REALTY ANALYSTS REAL ESTATE APPEvsus • ANALYsTs • ADVISORS 27 687 Introduction / History of the Subject Property (cont'd) Currently, the developer has developed the bulk of the remaining lots located on the east side of Jefferson Street. The absorption rate for the project has been among the strongest in the region, as the units have attained excellent market acceptance. Alternatively, the subject parcels have not traded actively over the past several years. The reason is that Jefferson Street is a major arterial, that bottlenecks at the area of the subject, where the street becomes 1-lane in each direction. In fact, during my physical inspection, several of the homeowners indicated that they felt that the combination of street noise and the high traffic count have been detrimental influences. The fact that 6 of 24 residential lots in this area remain undeveloped after over 4 decades subsequent to their subdivision clearly supports the lack of demand and viability for single family homes on Jefferson Street in this particular area. However, the lots back to the Indian Springs Golf. Course, which does provide good view elements to the subject homes. The southern end of the subject area abuts the Whitewater River, a large regional drainage escarpment. This drainage periodically floods, closing Jefferson Street to through traffic. In light of the location of the Whitewater River and the configuration of Jefferson Street, the City of La Quinta is currently exploring the possibility of acquiring the subject parcels in order to widen Jefferson Street and construct and bridge over the Wash. The potential taking generated the requirement for this analysis. Purpose of the Appraisal The purpose of this appraisal is to estimate the just compensation for the part taken, in accordance with the definition of market value prescribed by the California Code of Civil Procedure, and for negotiation and possible eminent domain proceedings, including potential use as a basis for a deposit of probable just compensation. Function of the Appraisal Eminent Domain Property Rights Appraised The property rights appraised are those of the Fee Simple Estate. The definition of Fee Simple Estate for this appraisal is as follows; Definition of Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.", ' (The Dictionary of Real Estate Appraisal 3rd Edition Appraisal Institute Chicago Illinois Page 140.) (12) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • ADVISO 28 �$$. Definition of Market Value The definition of Market Value for this Appraisal is as follows: A. The market value of the property taken is the highest price on the date of valuation that would be agreed to by seller, being willing to sell but being. under no particular necessity for so doing, or obligated to sell, and a 'buyer, being ready, willing and able tobuy, but he other withder theful�knowledge particular necessity for so doing, each dealing with t is reasoned of all the uses and purposes for which the property y adaptable in a buyable period. B. The fair market value of the property taken for which there is no relevant market is its value on the date of valuation as determined by any valuation that is just and equitable. (Source: California Code of Civil Procedure, Title 7, Chapter 9, Article 4, Paragraph 1263.320) Definition of Eminent Domain "The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as "the taking clause" guarantees payment of just compensation. upon appropriation of private property. Definition of Condemnation "The act or process of enforcing the right of eminent domain." Definition of Easement " An interest in real property that conveys use, but not ownership, of .a portion of an owner's property. Access or right-of-way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space and preservation easements. 04 Definition of Damages Califomia Code of Civil Procedure Section 1263.420. Damage to the remainder is the damage, if any, caused to the remainder by either or both of the following: (a) The severance of the remainder from project for whiart ch the property is taken in the (b) The construction and use of the pro . manner proposed by the plaintiff whether or not the damage is caused by a portion of the project located on the part taken. 2 gl r,,gnm Ot Real Estate Aoofai�l. Chicago. ii.. Page 116 a T►.. ni. Nwn�ev'4 Real Estate ADordisal. ChlcagO, II., Page 71 (13) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS+ ADVISORS 29 F Q 7 Definition of Benefits Califomia Code of Civil Procedure Section .l263.430. Benefit to the remainder is n and use of the project for whi h the the benefit, if any, caused by the construction property. is taken in the manner proposed by the plaintiff whether or not the benefit is caused by a portion of the project located on the part taken. Bundle of Rights Theory The concept that. compares property ownership to a bundle of sticks with each stick r epresenting a d istinct a nd s eparate right of t he p roperty o wrier, a o the right to use real estate, to sell it, to lease it, .to give it away, or to choose to exercise all or none of the rights. Before and After Rule re often referred to as the Federal Rule; In eminent domain a procedue value o in which just compensation is measured as the difference between the entire property before the taking and the value of the remainder after the taking. I have applied the State Rule to appraise the subject taking. There are nine procedural steps to be followed, as shown below: 1. Value Before Taking 2. Fair Market Value of Part Taken Part of the Whole 3. Remainder Value Before the Take 4. Remainder Value After the. Take 5. Damages to the Remainder 6. Benefits to the Remainder 7. Net Damage to the Remainder Note that all of the proposed takings are for a 1000/6 fee estate. Consequently, there will be no remainder parcels, easements, edwholee and consequentlor benefits. y just ugh the State Rule is applied, the part taken is compensation is for a 100% fee estate in each parcel. Scope of the Appraisal Appraisal Report is intended to be an "appraisal assignment" as defined in This the Standards of Professional Appraisal Practice of the Appraisal Institute. It is my intent that the. appraisal service be performed in such. a manner that the results of the analysis, opinion or conclusion hhat of a disinterested data deemed pertinent he Additionally, it is my intent that all appropriate solution Additionally, the appraisal problem be collected, confirmed and reported in conformity with the Standards of Professional Appraisal Practice and the Code of Professional Ethics of the Appraisal Institute. The scope of the analysis is intended to be appropriate in relation to the significance of the appraisal problem. (14) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS [; O 30 V Scope of the Appraisal (cont'd) Lacking improvements with an associated cost and /or income eaming potential, the Cost Approach and the Income Approach are excluded for the valuation of the vacant parcels. The Sales Comparison Approach is applied exclusively for the vacant parcels. In terms of the improved parcels, both a Cost Approach and a Sales Comparison Approach are applied. The Income Approach is excluded as there is a lack of rental data in the area. Although one of the subject parcels is currently leased, a copy of the lease agreement was not provided. The Appraiser interviewed market participants including buyers, sellers, developers, real estate brokers and lenders in the subject market and competing areas during the collection and confirmation of data for this assignment. Date of Valuation June 10, 2003 Date of Appraisal June 20, 2003 Legal Description The legal description for the subject property is as follows: 1 649-071-008 .20 Acres M/L in Lot 17 MB 041/055 TR 2190 2 649-Q711-009 Portion of Lot 19 and Lot 18 MB 041/055 TR 2190 3 649-071-010 Portion of Lot 19 MB 041/055 TR 2190 4 649-071-011 Portion of Lot 19 and Lot 20 MB 041/055 TR 2190 5 649-071-012 Lot 21 MB 041/055 TR 2190 6 649-071-013 Lot 22 MB 041/055 TR 2190 7 649-071-014 Lot 23 MB 041/055 TR 2190 s 649-071-015 Lot 24 MB 041/055 TR 2190 9 649-071-016 Lot 25 MB 041/055 TR 2190 10 649-071-017 Lot 26 MB 041/055 TR 2190 11 649-071-018 Lot 27 MB 041/055 TR 2190 12 649-071-019 .24 Acres M/L in POR Lot 29 and Lot 28 MB 041/055 TR 2190 13 649-071-020 13 Acres M/L in Lot 29 MB 041/055 TR 2190 14 649-071-021 Lot 30 MB 041/055 TR 2190 15 649-071-029 04 Acres M/L in POR Lot 18 MB 041/055 TR 2190 16 649-090-001 Lot 39 MB 041/055 TR 2190 17 649-090-002 Lot 38 MB 041/055 TR 2190 18 649-090-003 Lot 35 MB 041/055 TR 2190 19 649-090-004 Lot 36 MB 041/055 TR 2190 20 649-090-005 William Hall 21 649-090-006 Lot 34 MB 041/055 TR 2190 22 649-090-007 Lot 33 MB 041/055 TR 2190 23 649-090-008 Lot 32 MB 041/055 TR 2190 24 649-090-009 Lot 31 MB 041/055 TR 2190 25 649-141-001 Lot 1 MB 057/007 TR 3505 (15) UAPITAL MEALTY ^MAL,T010 REAL. ESTATE APPRAISERS • ANALYSTS • AMISORS 31 691 Assessment & Taxation Consistent with code sections pertaining to eminent domain, assessed value has not been used as a basis for valuation. Easements and Encumbrances A Preliminary Title Report for the subject parcels was not submitted or examined: .The subject is being appraised as though there are no atypical easements and/or encumbrances that may have a negative impact on the prospective market value or marketability of the subject. The appraiser reserves the right to modify any data or value estimates contained in this analysis after inspecting Preliminary Title Reports for the subject parcels. (16) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS 9 ADVISORS 32 692 Regional Analysis Regional Map Desert W SPrk krxlwa irxn raas tk ubu ,ia11rg01111 eq MA1d,rr/Mel � LR• VY1ye Norlhpow kr!droa (ruo 116limralIlark ee VVlrter *pp, Dow Rd DO an Rd Plato WOW r y� M fried L ash FT S 1 i� E Weo1 t t t Washington Was* ? Thousand palm swkwq Pakns � � M011�' . Shlcrie i47 ... tNllderrlessp C A: L F O R N 1 A Subject t:othraarud Eagl, bPhsccW ji i r Myplle VUIMrGMer! YartWn Veb Vole , .N'�'ld .kIRerKho` -"R-' - FrOwillkg• i a., . 74.. Pakn 0eseli°. vydsCackle CRY ' I n 'roCadleb�`' San Dornardlno IWUmd Fbrrsl 74 *La Q11 me • ': 1Ther" Sral d . nram.�l4r.ar.� T h.,mal A,rp1-` Bah Aw`Mecca Sanr+ 1 Rtn:n as n� :b :'CrhuiNr LR. Salton Sea Desch MW IInmwItl0m. andbr is Iltymnpirs. Ai ' s reserved. Regional Demographic Snapshot Median Median Median Labor Description Population Household Inc. Housing Val. Age Force Unemployment Cathedral City + 44,650 $ 40,014 $ 113,200 31.3 19,460 5.80% Coachella 23,950 $ 30,068 $ 68,400 23.0 9,120 14.40% Desert Hot Springs 17,000 $ 26,782 $ 74,100 30.2 6,540 6.70% Indian Wells 4,020 $ 113,851 $ 372,900 60.2 N/A 2.90% Indio 51,500 $ 33,629 $ 83.660 26.2 21,701 9.10% La Quints 26,300 $ 51,231 $ 117.400 31.0 7,480 5.60% Palm Desert 42,350 $ 48,309 $ 172,600 41.9 15,940 3.80% Palm Springs 43,800 $ 35,651 $ 141,200 43.9 25,820 5.00% Rancho Mirage 13,900 $ 58,341 $ 252,500 58.8 N/A 3.20% Unincorporated 64,262 $ 41,741 $ 98,000 35.0 N/A 6.50% Total Mean 331,732 33,173 $ 41,741 $ 126,200 35.0 N/A N/A (17) CAPITAL REALTY ANALYSTS REAL ESTATF APPRAISERS a ANALYSTS a ADVISORS 33693 Regional Analysis Population The following chart shows the growth pattern of the regional area since 1980; 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 5 - 0 Population Power (Population) In addition to the permanent population of 331,732 on 1/1/01, there is an estimated 124,000 seasonal residents from January through May. Among .the incorporated cities, the following chart depicts population rates since 1980: 1980 1990 cwi - - III Cathedral City ■ CoschOU O Desert Hot Springs D Indian Wells ■ Indio ■ La Quk" ■ Palm Dssert O Palm Springs III Rancho Mirage The following table . shows the same data expressed in terms of growth rate percentages since 1990; 1990-2001 O.Z;7 20.00N. 40.00% 60.00% 80.00% 100.00..% 120.00% 140.00% ■Rancho Mirage - O Palm Springs ■Palm Desert ■La Quints ■ indio Olndian Wells 0 Desert Hot Springs Cathedral As shown, La Quinta is leading the region in terms of population growth. Indio passed Palm Springs as the largest city in the regional area, and Palm Springs has had the least growth over the past 10 years. i18) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS * ANALYSTS • ADVISORS 6 9 4 34 v �j Regional Analysis Population (cont'd) The total permanent population of the Coachella Valley is projected to be 372,000 in '2005, 422,000 in 2010 and 473,000 by 2015. Economy Historically,. the regional economy developed around tourism in the western portion o f t he r egion, and a griculture i n t he a astern p ortion o f t he r egion. T he tourism, construction and agricultural industries continue to drive the economy of the region. The following table shows regional employment by sector; Employment ® Manufacturing ■ Utilities / Transportation O Government / Schools O Construction ■ Finance M Agriculture ■ Tourism D Retail ■ Services In terms of 1 regional economic conditions, hotel room sales are an important indicator as the tourism and services segments make up the largest employment base. As shown in the table below, regional hotel room sales trending down in 2001, after encountering a strong increase through the 90's. Regional Hotel Room Sales 400 350 300 250 200 150 100 50 0 I"%dry I-'*J 0- N000 N40 hoti NO N% �� ti000 400� - s Room Sales (millions) — Power (Room Sales (millions)) In terms of construction activity, 2002 had $1.13 billion in permit activity, which was the 2"d highest year ever in permit valuation. The following table shows a Building Permit Valuation comparison: (19) CAPITAL REALTY ANALYSTS Rem. ESTATE APPRAISERS • ANALYSTS • ADVISORS 35 69J Regional Analysis Economy (cont'd) 1000 Boo 600 400 200 0 Regional Building Permits By Property Type 92 93 94 95 96 97 98 99 0 1 2 —* Residential —w- MultWamily Commercial Year Assessed values in the regional area had been flat from 199 1997. Total assessed values Increased from 1997-2002. The eastern part of. the regional area continues to support a significant agricultural based economy. Although current crop production is up, employment is down due to improved technology in production and a migration to less labor-intensive crops. In the manufacturing. sector, growth has been limited and industrial lot supply & demand is roughly in balance. Thp State created 'an Enterprise Zone in 1991, which encompasses approximately 29,000 acres in the northeastern end of the region. Efforts to attract new development to this area have largely failed to date. The economic benefits expire in 2006. Conclusion The subject region is in the growth stage of its economic life cycle. The regional area is projected to continue to double in population approximately every 15 to 16 years. The eastern part of the regional area should continue to transition from agricultural uses to residential and ancillary supporting uses. Current country club residential absorption is trending down due to negative national and regional economic conditions. However, the primary housing sub -market at lower price points is trending up, as is the average retail unit price. The hot summer climate of this regional area will continue to create a significant seasonal. market. Long- term prospects appear similar to the historical growth patterns of other, more mature seasonal markets in the southwest like Phoenix, Tucson, Las Vegas, etc. The core industry of tourism & related businesses should continue to dominate the economy of the regional area in the long term. As the regional area transitions into permanent populations of over approximately 750,000, it is .likely that a sufficient labor pool will exist to attract larger manufacturing and non - service related economic entities. (20) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 36 696 Reoional Analysis Conclusion (cont'd) In the short term, the subject region is characterized as being in a growth mode. After poor or no growth from 1990 to 1995, the residential and retail sectors trended up sharply through 2002. Current industrial supply & demand is roughly in balance. The hospitality industry had a record year in 1999/2000. The 01/02 season was negatively impacted by the 9/11 attacks. The 02/03 season showed a small increase. While the national and regional economic down turn have impacted some real property segments, the lower end primary housing and 'retail segments continue to progress. These trends are expected to continue through at least the short term. (21) CAPITAL REALTY ANALYSTS 697 REAL ESTATE APPRAISERS • ANALYSTS 0 ATfM City Analysis, La Quinta, CA Subject MIIN wry , f ■ .. � � . .w r.... • ■ y ............ 1. �■wIw � Mww. _ Y '� •14 • p{{ f �'..i E 91• w•.w w.w 1f U f »... h+µw�v M/w■Y • !; Yw Mw •{a Location La Quinta, CA. is located in the eastern portion of the Coachella Valley.. The city is bordered to the west by the Santa Rosa Mountains providing an outstanding natural view amenity. Historically, La Quinta developed around the La Quinta Hotel, which was built in 1926. The City has easy access to Highway 111 and a direct route to Interstate 10 via Washington Street and Jefferson Street. Population population Growth, La Quints From 1989 to 2002, the permanent population of La Quinta grew by 30,000 approximately 337%, or an 25,000 average of approximately 28% per 20,000 year. In addition, an estimated 15,000 12,000 seasonal residents reside in 1o,o00L— Lay Quinta for 4 to 6 months per 5,000 year. The "season" is generally o 92 9a ss s7 sa 0 1 2 ' considered January through May. La Quinta has been one of the fastest growing cities in Riverside County. The City has a substantial inventory of residential and master -planned community land remaining for development. (22) CAPITAL REALTY ANALYSTS Rat. EsrAh AmAiseas. Awuxsrs p ADVL%M 38 F) 93 City Analysis, La Quinta, CA Economy La Quinta has historically been known as a higher end resort community. The local a conomy i s d riven mainly b y t he r esort / r esidential d evelopments i n t he city. The number of high quality projects such as PGA West, Tradition, Rancho La Quinta, La Quinta Resort & Club, and the La Quinta Hotel provide a significant employment. base in the service and construction sectors. The following graph shows a historical prospective on the number of residential units developed in 'La Quinta over the past 16 years: Residential Units Developed 86 88 90 92 94 W" VO &%MV &.%two. ■a oe$ oso ■ 92 0" ■97 ■ MO ■ MI As shown, the city has had a tremendous number of residential n new idunits developed, in relation to the size of the permanent population of country club projects are currently active in new residential construction.. These include PGA West, Rancho La Quinta, Mountain View, The Hideaway, and the Tradition. PGA West in particular has been quite active.. The property owner, KSL Recreation discontinued their in-house residential development program in mid-1998 and sold most or the entire remaining superpad production lot inventory to merchant builders. The City's redevelopment agency recently acquired 525 acres of land located west of Jefferson Street between Avenues 52 and 54. Redevelopment of this land will include the city's first municipal golf course. Future hotel/resort and retail development are also planned for the property, which will create new tax revenue for the city. Other than the homebuilding industry, La Quinta has a substantial economic base in the tourism industry. The Washington Street / Highway 111 corridor is rapidly evolving with a new Auto Mail and an approximately 66-acre commercial/industrial park known as the La Quinta Corporate Centre, which is partially developed with more phases planned. A significant amount of undeveloped residential land in the city (23) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 39 i193 City Analysis, La Quinta, CA Economy (cont'd) seems likely to assure continued growth on a similar pattern through at least the mid-term. Based on the historical growth pattern of La Quinta, and the availability of land, La Quinta is generally projected to remain in the growth phase of its economic life cycle for approximately the next 15 years. Recent developments have occurred in La Quinta including many notable businesses and restaurants, such as Fisherman's Market, Jensen's Finest Foods, LG's Steak House, Larsen ,Golf Cars, and The Falls Prime Steakhouse. Other commercial activity along Highway 111 is underway, including Big Five Sporting Goods, Ross Dress For Less, Staples, and a - Super Wal-Mart. Along Washington Street, new services are expanding, which will include a Marriott Residence Inn, a professional plaza, a medical plaza, and Omd & Boni restaurant. H istoric O Id T own L a Q uinta i s b eing revitalized a s well with n ew restaurants, a mixture of retail stores, and professional office spaces. Also in La Quinta, the new La Quinta Park will be constructed. with Spring 2003 as the anticipated completion date, located at the corner of Adams Street and Westward Ho. The graphs below show the economic growth of La Quinta Hotel Room Sales in Millions $ 97 98 VV LNNV &-. ____ Building Permit Valuations in Millions; 097 ■ 98 E99 s 2000 S 2001 1112002 ■ 97 ■ 98 ■ 99 ■ 2000 02001 (24) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 40 700 City Analysis, La Quinta, CA Economy (cont'd) Taxable Sales in Millions $ 419.9 ■ 97 ■9s 099 02000 ■ 2001 ■ 2002 Employment The City of La Quinta is largely suburban residential in character: On a regional level, the resort character of the Coachella Valley reflects the large percentage of employment in the retail, tourism and services industries. Construction has historically had a strong employment base. The following table shows a summary of employment by sector: Services21,000 12,500 Tourism 8,000 Agricultural 7,500 Construction 7,500 Government/Schools 6,500 Finance Related 5,000 Utilities/Transportation 3,500 Manufacturing 94,500 Total Conclusion La Quinta has had the fastest growth ratio of any other city in the regional area. This trend is expected to continue, as there are a large number of residential acres and existing projects remaining for development. Similarly, the number of households is expected to grow at a proportional rate. Median income levels in the subject market are increasing because of a higher percentage of professional employment. The potential for an increasing employment base within the city is likely to be driven by the continued success in the construction industry, golf and retail centers on Highway 111. The table on the following page shows the current demographic profile of La Quinta: (25) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 41 "' ,� City Analysis, La Quinta, CA City of La Quinta - 2002 Demographic Profile Total•.. ' Sex Occupied housing units 71.5% 10,100 Male 14,081 Owner occupied 81.5% 8,227 Female 14,634 Renter occupied 18.5% 1,873 Vacant housing units 28.5% 4,027 Units for seasonal use 21.5% 3,031 Age Under 10 years 4,763 10 to 19 years 4,245 Housing Type 20 to 44 years 9,431 Single family 91.3% 12,902 45 to 64 years 6,430 2 to 4 units 2.4% . 335 65 years and over 3,845 5 or more units 4.1 % 580 Median Age 36A Mobile home/trailer/other 2.2% 310 00 0Housing Values ,Total.. Family households 7,841 Specified owner occupied units 7,617 Non -family households 2,259 Less than $100,000 15.2% 1,159 Persons in household 28,675 $100,000 to $149,999 25.2% 1,920 Person in group quarters 40 $150,000 to $199,999 20.3% 1,549 Persons per household 2.84 $200,000 to $299,999 18.0% 1,371 $300,000 to $499,999 11.9% 905 Contract Rent $500,000 to $999,999 6.9% 529 Specified renter occupied units $1,000,000 or more 2.4% 185 paying monthly cash rent 1,873 Median Home Value $185,9411 Less than $300 68 $300 to $499 132 $500 to $749 490 • .$750 to $999 647 Per capita income $ 29,123 $1,000 or more 491 Median household income $ 58,229 Median Median family income $ 60,680 (26) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • Aavf RS I• Neighborhood - Market Analysis C"• as • c q5 10 IOC MMP- I Ir Aim •a.d..w�•'i: �•.'. MW,s .. • \.nry �7ubje �.�r..rw..:.. r® f, Mw i r y p Yr1wF W\M •nwnP � d �r }) 1Y� f MAw Pw Aft!..A ew A. ..rnwil�iiw r•r Introduction located on the The subject property includes all of the homes and vacant lots, east and west, sides of Jefferson Street, south of Westward Ho, and north of the Wash, and 1 SFR located at the NEC of Jefferson Street and Vista Grande, La Quints, CA. All of the parcels are located in an area generally known as Indian Springs. All of the parcels front on the Indian Springs Golf Course, except4or the SFR on the NEC of Jefferson and Vista Grande. This home backs to the wash, and although it does not front on the fairway, a wide golf course view is available across the wash. Development Trends Historically, this neighborhood developed around. the Indian Springs Country Club. The Club fell into disrepair in the 80's and 90's. Demand proved limited in this location until approximately the late 1990's, when the Indian Springs property sold to a developer who has made substantial improvements to the property.. Several hundred new homes have been successfully developed immediately north of the subject within Indian Springs over the past several years. The subject lots front on Jefferson Street. Jefferson has evolved into a major regional artery. However Jefferson narrows parcelsne each located locat d ony at the subject, Jefferson Street creating a bottleneck. Consequently, the have historically had limited market appeal. Of the 22 developable lots located on Jefferson between Westward Ho and the Wash, 6, or 27.3% remain undeveloped, after over 40-years of market exposure. (27) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 703 43 Market Analysis In light of the fact that developers build homes on. lots that support values in excess of cost, the high percentage of vacant lots in the subject are supports the conclusion that the speculative development on these lots would not prove financially feasible, as of the date of value. Additionally, the cost -based value indicator for many of the subject homes exceeds the sales comparison -based indicator, suggesting that replacement cost exceeds value in many cases, as of the date of value. Although current sales data for units located on Jefferson Street is limited; the following table shows the historical sales data that is available for subject units with Jefferson Street exposure; Lot Unit Sale Sale Sale No. APN Owner Size Size Date Price Price PSF 1 649-090-002 Culp 7,841 2,333 11/20/1991 $185,000 $ 79.30 2 649-071-011 Peterson 11,326 2,025 B/l zn aas 31 su,uw a �*•�� 3 649-090-004 Waldo 7,841 1,872 2/27/1995 $143,000 $ 76.39 4 649-090-006 Rodriguez 7,841 1,984 5/23/1996 $166,000 $ 83.17. 5 649-071-019 Astorge 10,454 2,130 2/9/1999 $130,000 $ 61.03 6 649-071-015 Nikolich 7,841 2,336 9/29/1999 $170,000 $ 72.77 7 649-071-016 Rolland 7,841 1,526 4/18/2000 $130,000 $ 85.19 8 649-071-017 Krakoff 7,841 2,419 9/14/2001 $210,000 $ 86.81 9 649-071-012 Waggoner 7,841 2,243 1/3.1/2003 $186,000 $ 82.92 In order to test the value trend for parcels with Jefferson Street frontage, the price PSF, sorted by date, is shown on the following graph: $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 $ PSF Trend On Jefferson 91 93 95 96 99 99 0 1 3 Year — 0 $ PSF Linear ($ PSF) As shown, values for homes on Jefferson Street have remained virtually flat, on a PSF level, since at least the early 1990's. Since approximately 2000; values appear to have declined slightly. The reason is that Jefferson Street has become increasingly more busy, lowering both the desirability and marketability of homes on Jefferson Street. (28) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • Amsou 44 Market Analysis In contrast, I collected sales of adjacent lots from the same Map book,'649-07, that do not have Jefferson Street frontage. The following table shows the data, followed by the same $ PSF chart: Unit sale Sale Sale No. APN size Date Prim Price PSF 1 649-061-008 2,050 9/1/1992 $179,000 $ 87.32 2 649-071-022 2.458 2/15/1994 $170,000 $ 69.16 3 649-063-010 2,080 3/8/1995 $178,500 $ 85.82 4 649-071-005 1,882 4/13/1995 $160,000 $ 85.02 5 649-071-027 2.496 7/21/1995 $160,000 $ 64.10 6 649-062-020 1,834 9/5/1996 $126,500 $ 68.97 7 649-071-035 1,983 4/30/1997 $155,000 $ 78.16 8 649-072-004 2,370 1/15/1998 $148,000 $ 62A5 9 6494)63-012 1,822 4/30/1999 $150,000 $ 82.33 10 649-061-019 1,750 5/21/1999 $150,000 $ 85.71 11 649-061-007 1,907 9/8/1999 $145,500 $ 76.30 12 649-071-M 2,197 1/21/2000 .$160,000 $ 72.83 13 649.062-016 2,262 7/27/2000 $197,500 $ 87.31 14 649-071-033 1.789 3/30/2001 $225,000 $ 125.77 1S 649-071-031 2,923 5/8MI $260,000 $ 95.79 16 649-061-013 2,305 5/25/2001 $225,000 $ 97.61 17 649-072-001 1,953 8/23/2001 $168,500 $ 86.28 18 649-061-015 2,116 9/13/2001 $ 285,000 $ 134.69 19 649.083-014 1,710 10/24/2001 $225,000 $ 131.58 20 649-061-M 2,128 7/5/2002 $288,073 $ 135.37 21 649-062-011 2,569 10/16/2002 $320,000 $ 124.56 22 649.063-005 2,526 12/26/2002 $ 277,000 $ 109.66 23 649-063-015 1,935 2!7/2003 $ 247,000 $ 127.65 -. ...............e . n a envier % e "a nnn S 11R_70 (29) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 45 Market Analysis As shown, values have generally trended up for units in this neighborhood, off of Jefferson Street. For this reason, the comparables located off of Jefferson Street are adjusted downward in the Sales Comparison Approach for their superior location. This feature is partially offset by the fact that the subject units are located on the golf course. While golf course locations typically .command premiums, .the premium for the subject lots is somewhat limited slightly as the lots located on the east side of Jefferson front on a short course. All of the lots front on public golf, which is an inferior attribute as compared with private club locations. However, upward adjustment is applied to all of the off -fairway comparables in the Site Niew category. Conclusion The Jefferson Street exposure of the subject lots is the dominant physical feature of all of these units. The location is among the least desirable in the City of La. Quinta, and consequently, these units carry overall low values as compared with the new homes located in the adjacent Indian Springs Country Club area. The situation is getting worse, as traffic on Jefferson continues to increase. While overall residential market conditions are continuing to increase in the regional market, the value trend for the subject units is flat to decreasing slightly. The decreasing value trend on Jefferson is expected to continue as traffic increases. on Jefferson Street. As shown by comparing the PSF sale prices for units on Jefferson, to those off Jefferson (refer to the 2 tables of historical sales), it is clear that the market is not willing to pay the same PSF prices for unit on Jefferson as compared with those off Jefferson, where there are a number of sales with over $100 PSF sale prices. Alternatively, the highest PSF price paid on Jefferson Street in the past - approximately 12-years is just over $86 PSF. Net of any eminent domain action, these trends are expected to continue through the foreseeable future. (30) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 46 Site Analysis Subject Plat Map APN 649-07, Riverside County, CA. I ,• a I e _ o Off too • r n 1 p • ® YN ul /•eM �a�e�a. ~ 1 R IIM aw-W qq, (tij ar „ A A Nr on IM � Muf \ N II soM O_N �h O of / COW it � i x --*s —rVdV 10 �$ CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 47 707 Site Analysis Subject Plat Map APN 649-09, Riverside County, CA ie PAR it It w �'w � 1 V O / v A I• ti :t ;� b (32) CAPITAL REALTY ANALYSTS REAL ESTATE Amman a ANALYSIS • ApV" 0 8 Site Analysis Subject Plat Map APN 649-14, Riverside County, CA oil 9 � a Y 'OD : wow too fit O z,rA M �O p O; it w O r� ro h, y � ,q 44 if z;;;cz� ; 'a 8 (33) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 49 709 Site Analysis Location: East and west sides of Jefferson Street, south Of Westward Ho, and the NEC of Vista Grande a Jefferson Street, La Quinta, CA. Identification: APNs: 649-071-008 Through 021, 029; 649-090-001 Through 009; and 649-141-001; City of La' Quinta: Riverside County, CA. According to the City of La Quinta Zoning Map, all of. Zoning: the subject parcels are zoned RL, Low-Density, The existing zoning is considered. reasonable and appropriate.. No change in zoning: is' likely as of the date of value. Site Size: According to Riverside County Assessor's Plat Maps, the site sizes of the subject parcels are as follows: * APN Owner S@e Address site Size WA 6.712 1 649-071-0011 Jaff L. 3 Pavicis C. Lilley 2 649-071-M Epic 3 Helen Wah 46055 Jefferson Steil �. 3 649-071-010 Indian SprlrW Land CO WA 4 649-071-011 David F. 6 Patricia L. Peterson 46115 Jef fOW Street 11,326 7.841 5 649-071-012 so 3 Susie Wapponer 46145 Jefferson Street 6 849-071-013 Eupene T. 6 Carol A. Feeck 46175 JNterson Street 7,841 7 649.071-014 David A. 3 Carol A Elrod WA 7.641 8 649-071-015 Milan 3 Mile NkoNch 46235 Jeffanon Street 7.841 9 649471-016 Patsy Rolland 46305 Jefferson Sleet 7."1 10 649-071-017 Shahs A. Krakoff 46335 JeltenOn Street 7.841 11 649-071-018 Timothy K. Reynolds 46395 Jelkn= Shell 7.841 46425 Jefferson 86e9 100454 12 649-071-019 Ronald Astorgs 13 649-071-020 Jeff L. 3 Patricia C. LlNey WA 5A63 6,712 14 649-071.021 Jeff t. 8. Petilda C. LM*y WA 15 649-071-029 Jeff L. 6 Patricia C. Lllley NIA 1.742 16 649.090-001 Harvey A R Audrey R. Mips 46170 Jelfarson Street 7.841 17 649-090.002 Elaine L. & Robert L. Culp 46200 Jeffar$w Strad 7.841 16 6494)90-003 Emma Radds 46250 Jeffereon Stred 7.841 19 649-090-004 Edward E. & Marie A. Waldo 46280 Jefferson Stud 7.841. 20 649.090-005 Million Hall WA 7.641 21 649-090-006 Mtrte Rodriquez 46390 Jefferson Street 7.841 22 849-090A07 Charles J. 8 Apse S. Zilinsky WA 7.841 23 649-090-M Sue F. Staling 46450 Jefferson Steil 7.641 24 649-090-009 John D. & Jacy P. Alexander 46480 Jefferson Street ... 9.146 25 649-141-001 Leonard C. & Margaret R. Henderson 80020 VIM Grande 10A" Shape: Irregular. See Plat Maps Dimensions: See Plat Maps Frontage: E & W sides of Jefferson Street Topography: Finished residential. lots. (34) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS �ISORS Site Analysis Accessibility: Very Good Street Asphalt paved Improvements: Utilities: Utilities are available by the following utility companies: Electricity: Imperial Irrigation District Gas: The Gas Company Telephone: Verizon Water: Coachella Valley Water District Sewer: Coachella Valley Water District Flood Zone: According to the Flood Insurance Rate Map, Community Panel Number 060709 0005 B, dated August 19, 1991., the subject property is located in ., Flood Zone X. Zone X is defined as follows; ' "Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot, or with drainage areas less than 1 square mile; and areas protected by levees from the base flood." Drainage: Surface drainage on the subject appears adequate. Hazards: Other than' the fact that some parcels abut the Whitewater storm channel, none noted. As a real estate appraiser, I am not qualified to evaluate the site for toxic waste or hazardous substances. Therefore, the. property has been appraised as though free of such substances. (35) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • I ISORS 711 Site Analysis The Appraiser was not provided with a soils report for Sous: the subject property. This report assumes that there are hidden or unapparent conditions to the soil or subsoil no that would render the parcel more or less valuable. My physical inspection of the subject property did ; not reveal evidence of obvious soils problems. The Appraiser is not qualified to make a determination as to the existence or non-existence of hazardous materials on the subject. Earthquake According to Plate 1A of the Seismic Geologic Map, dated January 19, 1982, revised 1988, the subject Hazard: property lies within a boundary III Earthshaking Zone. The subject property is not located in an Alquist-Priolo Special Studies Zone, or in areas determined to be in a liquefaction hazard area. The subject is not located in an Area of Potential Subsidence. School District: Desert Sands Functional In physical respects, the functional adequacy ..of the land "As Is" considered impaired due to the Jefferson Adequacy of the Site, "As Vacant": Street frontage, as both traffic and noise are negative value influences. Additional comments are located in the Highest and Best Use Analysis of this report. Special Resources: The course of normal data gathering and analysis, and a visual inspection of the subject, did not reveal any evidence of. natural, cultural, recreational or scientific resources present upon. the subject site. Units of In the subject marketplace, vacant land of the subject's Comparison: size and type is typically sold on a per developable lot basis. The price per developable lot is. applied as the .unit of comparison in the "As Vacant" condition. (36) CAPITAL REALTY ANALYSTS REAL ESTATE AP►RAISERS • ANALYSTS • Amon 52 712 Site Analysis Relationship to The subject property conforms to the existing uses. in Adjoining the subject neighborhood, which include a mix of older Properties: residential development, along with a significant amount of new residential development. The homogeneous zoning in this area leads me to conclude that SFRs will continue to be a conforming and homogeneous in the short term. (37) CAPITAL REALTY ANALYSTS REAL ESTATE APP WSE1tS.• ANALYSTS e � � 713 .....,. - ; ; - EQG� @e� ■�i�!§RN "Vigo., �@ �eIleb4■�,� em�m_— .mv , - ■ --:a..e■,men � &% ■ � � # Site Analysis Flood Zone Map � Y - 111.1 NO) fi �r 1 Subject i ' ... AFII • i i NaNll NIN MNNN .NNw. 1 �� ':. FIREM nw iiimm U11 Ue I � I./I IPI IYlyl1 1 } I 1 I i � TIE,, E,y t5. yyy7 1 E' ([ 1 [[ 1. 1 �j��" rrw•Nva (39) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 55 715 Hiohest and Best Use Analysis Highest and Best Use is defined as: 1. The reasonable and probable use that supports the highest present value of vacant land or improved property, as defined, as of the date of appraisal. 2. The reasonably probable and legal use of land or sites as though vacant, found to be physically possible, appropriately supported, financially feasible, and that results in the highest present. land value. 3. The most profitable use. Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations, the highest and best use of land may b e for p arks, g reenbelts, p reservation, conservation, w ildlife habitats, a nd the like.' In estimating the highest and best use, there are essentially four stages of analysis: 1. Legally Permissible: What uses are permitted by zoning and deed restriction for the subject site? 2. Physically Possible: What are the physically possible uses for the subject site? 3. Financially Feasible: What physically possible and legally permissible uses will produce a .net return to the owner of the site? 4. Maximally P roductive: Among the financially feasible uses, which use will, produce the highest net return or the highest present worth? The following tests must be met in estimating the highest and best. use: The use must be legal. The use must be probable, not speculative or conjectural. There must be a profitable demand for such use and it must return to the land the highest net return for the longest period of time. To estimate the highest and best use, these tests are applied to the subject property (1) as if vacant and available for development, and (2) as presently improved. American Institute of Real Estate Appraisers, rie Dictionary of Real Estate Appraisal (Chicago Illinois: American (41) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS 717 Hiohest and Best Use Analysis "As If Vacant" Legally Permissible The legal restrictions that apply to the subject are the public restrictions Of the City of La Quinta's RL, Low Density Residential zoning ordinance. A large number of similar zoned parcels have been successfully developed in' area of the subject, with no atypical legal constraints. The legal constraints of the subject are considered reasonable and appropriate and would not impair development of the site to its highest and best use. Physically Possible The subject parcels were subdivided and designed to be detached single- . family residential lots, located on fairways of the Indian Springs Country Club. The size, shape, topography, and utility installations are all designed to support residential development. These aspects of the site represent . the s tandard of a cceptability f or s imilar r esidential I ots. The I ots front o f Jefferson Street which is a major regional artery. The traffic impact and noise levels make these lots much less desirable as compared with neighboring residential lots, not located on Jefferson Street. While this feature does not prevent development, the lack of feasibility has prevented 8 of 22 lots from being developed. Financially Feasible Financial feasibility for residential development is typically estimated with a simple comparison of costs and benefits. If the cost to construct a prospective development exceeds the present value of the cash flows to be derived from the development, the proposed use is not considered feasible. Alternatively, if the present value of the expected income streams exceeds the cost to produce the proposed development, the use is considered financially feasible. As described above, the fact that 8 f 22 Jots remain undeveloped on Jefferson Street after over 40•years, while several hundred lots have recently been developed off Jefferson Street in the immediate area of the subject, suggests that financial feasibility for speculative development of residential units on the subject lots would not be financially feasible as of the date of value. Additional evidence is provided by the fact that no developers, owners, or lenders are risking debt and equity on new development n these lots. (42) CAPITAL REALTY ANALYSTS READ. ESTATE AMFAMSERS 0 ANALYSTS - ftnSORS 718 1 8 Highest and Best Use Analysis "As If Vacant" Maximally Productive The physically possible and legally permissible uses for the subject property are present in the subject region. Other similar properties in the subject region have been successfully developed and absorbed. As current financial feasibility for development does not appear adequate as Of the date of value, the most maximally productive use of the site, "As Vacant", is to hold the lots for investment until such time as development of the lots becomes financially feasible. "As Improved"' All of the improved homes add an increment of value that exceeds the current land value. Consequently, the highest and best use of the lots as improved is to remain as improved. (43) CAPITAL REALTY ANALYSTS REAL ESTATE APPIWsm • ANALYSTS �7 7 19 Appraisal Process The first step in the appraisal process is to identify the appraisal problem. Every real property is different, and there are many types of values that can be estimated for any real property. For this appraisal assignment, the required value estimate for the subject is as follows: ♦ Just Compensation For The Part Taken The definition of market value has been defined in the Purpose of the Appraisal section of this report. The subject property and the type of value desired have' been identified. Through the appraisal process, it is my intent to present a properly supported value estimate for the subject property. The market data, analysis and conclusions presented in the appraisal report should cause a reasonable .person to reach similar conclusions. There are three traditional approaches to estimating market value for this property type. These are the Cost Approach, the Sales Comparison Approach and the Income. Approach. The approaches to value, and their applicability to this analysis, are described as follows; Cost Approach "A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting. accrued depreciation from the reproduction or replacement cost; and adding the estimated land value plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised."' The Cost Approach is. considered most relevant when the improvements are new, as .depreciation can be estimated with a reasonable degree of accuracy. Another case when the Cost Approach works well is when market conditions are such that the typical buyer would realize similar yields b y b uilding n ew, o r a cquiring a n e xisting s et o f i mprovements. I n this case, the vacant subject parcels do not have any improvements with an associated cost: Consequently, the Cost Approach is not applied as a valuation method for the vacant parcels. The Cost Approach is applied to estimate the market value of the improved residential parcels. ° The Dictionary Of Real Estate ADpraisW Third Edition Appraisal Institute, 1993, Page 81 (44) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS ecO ADVISORS 720 Acoraisal Process Sales Comparison Approach "The Sales Comparison Approach is the process in which a market value estimate is derived by analyzing the market for similar properties and comparing these properties to the subject. property. Estimates of market rent, cost,. depreciation, and other value parameters may be derived in the other approaches to value using comparative techniques. Often; these elements are also analyzed in the sales comparison approach to determine (estimate) the adjustments to be made to the sale prices of the comparable properties. The comparative techniques of analysis applied in the sales comparison approach are fundamental to the valuation process."° The Sales Comparison Approach can be a strong indicator when sufficient comparable sales data exists, and is generally the best technique available to estimate the market value of vacant land, such as the vacant subject parcels. Additionally, SFRs such as the improved subject parcels. are typically acquired based on their comparability to functionally equivalent substitute properties. Consequently, the Sales Comparison Approach is applied • to estimate the market value of all of the subject parcels. Income Approach "A set of procedures through which an appraiser derives a value'indication for an income -producing property by converting its anticipated benefits (cash flows . and reversion) into property value. This conversion can be accomplished in 2 ways. One year's income expectancy can be capitalized at a market -derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment and change in the value of the investment. Alternatively, the annual cash flows for the holding p eriod a nd t he r eversion c an b e d iscounted a t a s pecified y field rate.*" Lacking improvements with income earning ability for the vacant parcels, and lacking sufficient rental comps for the improved parcels, The Income Approach is not applied for any of the subject parcels for this analysis. A reconciliation completes the analysis. leading to the final value estimate." 9 The Appraisal Of Real Estate, Tenth Edition_, Appraisal Institute.1992; Pape 367 The Dictionary Of Real Estate Awraisal, Third Edition, Appraisal Institute, 1993, Page 178 " Note that computerized spreadsheets may be used in this report. Numbers are typically accurate to 6 decimal points and rounded to the nearest whole dollar or 100th of a percent. Manual calculation of totals may result In Insignificant (45) CAPITAL REALTY ANALYSTS REAL ESTATE At+mmsERB • ANALYSTS • "MOU 61 721 1 Sales Comparison Approach The Sales Comparison Approach is the primary method applied to estimate the market value of all of the subject lots and homes. The Sales Comparison Approach is defined as follows: "A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale _ prices of the comparables based on the elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant; it is the most common and preferred method of land valuation when an adequate supply of comparable sales are available."10 As described in the Market Analysis and.Appraisal Process sections, 4 sales are applied to estimate the market value of the homes and lots. Two sets of sales are included, One set of 4 sales is applied for the single-family homes, and another set of 4 sales are applied to estimate the market value of the fee simple estate in the subject vacant lots. Since the same set of sales are common to all of the homes and tots, the sales are described once in this section, as follows: Single Family Home Comparables Comparable Saba Number 1 Comparable sale number 1 is the March 5, 2003 sale of a 1,879 SF home located on Vista Grande. This home is located immediately east of the subject Henderson (APN: 649-141-001) property. This sale was selected for comparison as it is located on one of the subject streets, and has a view over the wash of -the golf course. At 10,454 SF, this is one of the largest lots in the Tract. The .unit has a gated entry with a front -yard pool, which is common among several of .the subject SFR's. The unit has a split -bedroom floor plan and is on sewer. The unit sold for $235,000 and is not located on Jefferson Street, which is a positive locational attribute. The unit does have a long golf course view. The original asking price was $239,000. The unit was on the market for 6 days. 10 The aicoonary of Real Estate Appraisal The Appraisal Institute (46) CAPITAL REALTY ANALYSTS REAL ESTATE A"Wsm • ANALYSTS • ADVISORS 62 722 • r� Sales Comparison Approach Single Family Home Comparables (cont'd) Comparable Sale Number 2 Comparable sale number 2 is the November 2002 sale of a ' 1,928 SF home located on Fiesta Drive, west of Jefferson. The sale Iprice was $225,000. This data item was selected for comparison because it is a 1964 vintage home, which has recently been extensively remodeled. Consequently, this sale should represent the top of the market for older homes such as many of the subject units; that have been well -maintained. This sale does not have Jefferson Street exposure, which is a positive locational quality. The remodeled items include the following: Security System New Carpet • New Tile Floors Conan Kitchen Counters New Tile Counters • New Sinks and faucets in baths New vertical .blinds • New FAu New Dishwasher • New pool / deck Although the location off of Jefferson Street is superior, the lack of golf course exposure is a negative site attribute in comparison to the subject golf course lots. The original listing price was $259,000. The unit was on the market 80 days. (47) CAPITAL REALTY ANALYS7V REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 63 723 Sales Comparison Approach Single Family Home. Comparables (cont'd) Comparable Sale Number 3 Comparable sale number 3 is the February 2003 sale of a 1,935 SF home located on Cortez Lane, west of Jefferson Street. The sale price was $247,000. The original asking .price was $279,500. The unit was on the market for 63 days. The seller had replaced the original shake roof with a new tile roof just prior to the sale. Additionally, the pool and deck had recently been redone. The home has shutters on all windows. These features; required a downward adjustment in the upgrades category. The unit is a superior location off of Jefferson Street. However, the lack of golf frontage - is a negative site quality. This feature is partially offset by the fact that the unit has a very long view. Comparable Sale Number 4 Comparable sale number 3 is the May 2003 sale of a 2,444 SF home located on Roudel Lane, west of Jefferson Street. The sale price was $240,000. The original asking price was $299,950. The unit was on the market for 198 days. The long marketing time, and wide disparity between the listing and selling prices demonstrate the market resistance and price barrier for older improvements in this sub -market. This sale was selected to demonstrate a larger unit sale. Additionally, this is a very recent sale in the market. (48) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • ADVISORS 64 724 Sales Comparison Approach Vacant Lot Comparables Comparable Sale Number 1 Comparable sale number 1 is located along Hummingbird, just west of Jefferson Street. At 20,038 SF, this lot is large for the neighborhood. The lot sold on 4/22/03 for $63,500. The lack of Jefferson Street frontage is a positive feature. The lack of golf course exposure is a negative feature. Overall comparability is considered good. Comparable Sale Number 2 Comparable sale number 2 is the 8/13/01 sale of a 10,019 SF SFR lot, located just west of Jefferson Street. The sale price was $46,000. This data item is considered typical of lot values off the golf course, in the immediate area of the subject. Overall comparability is considered average. Comparable Sale Number 3 Comparable sale number 3 is an example of a larger lot, located in the Cove area of south La Quinta. Lacking sufficient sales from within the immediate area of the subject, I elected to pick a sale from the Cove area, where there are older homes mixed with newer homes, such as those of the subject area. However, the Calle . Tampico location is considered superior. The lot sold on 1/16/03 for $80,500. Comparable Sale Number 4 Comparable sale number 4 is a 6,098 SF SFR lot sale taken from Laguna De La Paz. This sale was selected for comparison, as the lot fronted on the lake, which is considered to be of a similar value as compared with a golf course exposure. The development is gated. The lot sold on 1/23/03 for $73,000.Overall comparability is considered average. Valuation Sections The following sections outline the valuations for each of the subject parcels: (49) UAPITAL KEALTY APIALY51J REAL ESTATE APPRAISERS • ANALYSTS • ADVr 725 • • Nikolich: 649-071-015 Owner of Record: Property Type: Location: Identification: Census Tract Number: Milan & Mila Nikolich Single Family Home 46235 Jefferson Street, La Quinta, CA. APN: 649-071-015, Riverside County, CA. Tract 452.05 Site Size: 7,841 SF Site View Elements: West facing lot with a golf course view, and Jefferson Street frontage. Improvement The property is improved with a 2,336 SF,. Class D Description: (wood frame) 4 bedroom / 2 bath single-family home, and a 4 40 S F 2 -car g arage, w hich i s a ttached t o the main house. The roof is tile. The property has a rear - yard covered patio and in -ground spa. The improvements were constructed new in 1988, and were observed to be in good condition on. the .date 'of value. Estimated Economic 60-Years Life: Estimated Effective Age: 10-Years Highest And Best Use, "As Vacant": Highest And Best Use, "As Improved": Final Value Estimate: Sales History of the Property: Hold for investment Remain "As Improved" $252,000 According to public records, the current owner acquired this property on 9/29/99 for $170,000. (83) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS 9 ANALYSTS • ADVISORS 66 726 • C Photographs Relating to the Subiect Property The subject property viewing NW from Jefferson Street. The dining area. Viewing NE at the rear of the subject Bath finishes. (84) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS • AmsoitS 67 727 Floor wms mm-hmxtrwwr.r,o " - b4rar,w<-140M MM (85) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTS -' Cost Approach Address: 46235 Jefferson Street APN: 649-071-015 Estimated Site Value: $ 72,000 Estimated Reproduction Cost New: SF Cost Extension Dwelling 2,336 $ 63.11 $147,425 Spa 1 $ 5,000 $ 5,000 Other - $ - $ Garage 440 $15.71 $ 6,912 Multiplier 1.1413 Total Cost New $ 253,852 Physical Depreciation 33.33% $ 53,112 Functional Depreciation 0•00% $ - External Depreciation 0.00% $ - Depreciated Value $ 200,739 Site Improvements $ 35,000 Total Cost -Based Value $ 235,739 $235,739 $235,000 (Rounded) (Two Hundred Thirty Five Thousand Dollars) (86) CAPITAL REALTY ANALYSTS REAL ESTATE APPRMSuS • ANALYSTS 9 Ammon n 69 729 • p �QQQS+ p 11QQ7 � Q 4QQ= s i3 �. M 0 N H.. .H y v M y m J �75 cQ C', Two E E'h E�cv 3a3 o N N 6 CA' N N N N In •- M C to en Q Q o $ P'tpp ppIq 0 Ctpp �{ H N O H H ODH Vi v' N O r, v N H y H � m z c3 >� m e+, ma m u� Q m $ C4 .2 c to In $ C4 N �++ v N N H we, v to z N V ys !0 Q N m4' r�� ifyy5 _ N M N Ck a. to N Q N m � N as 40 M '94 5d a vi 0 N M cn 06 m cc C4 co {6 c�iMc�vltnv�aiA �,,.a m C � o N � z m � a N �� maqq CL m C a Q Qj Q N w 7 C O E d o � m®01.058 m m a 4 C m C9 A C ar a M c 0 H d p � 0 V 70 co 1 730 • 0 Conclusion The cost -based indicator came in at $235,000. The Sales Comparison —based indicator came in at $252,000. This home appeared well -maintained and in average condition for its effective age of 10-years. Most emphasis is placed on the Sales Comparison Approach. Based on the available data, it is my opinion that the market value of .the subject property, based on the definition ofmarket value described in the introduction section of this report, is as follows: $252,000 (Two Hundred Fifty Two Thousand Dollars) ($$) CAPITAL REALTY ANALYSTS REAL ESTATE APPRAISERS • ANALYSTs • Aw n 731 Certification I certify that, to the best of my knowledge and belief, The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only by the reported assumptions- and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence or, a subsequent event. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person(s) signing this report. The reported analyses. opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The use bf�this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of.the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the. approval of a loan. Michael A. Scarcella, MAI State Certification No.: AGO19463 Expiration Date: October 249 2005 (1 77) CAPITAL REALTY ANALYSTS REAL ESTATE ArrRAIsm • ANALYSTS • ADVISORS 732 72 Addendum (178) CAPITAL REALTY ANALYSTS REAL ESTATE A"RAISERS • ANALYSTS • ADVISORS 73'733 Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions and limiting conditions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to ,be good and marketable unless otherwise stated. 2. The property is appraised free and Gear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The. information furnished by others is believed to be reliable. However, no warranty is given for its 'accuracy. The appraiser reserves the right to make adjustments to the analyses, opinions and conclusions in this report, as may be required by consideration of additional or revised data that may become available. 5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed.for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with.all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered)n the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless n onconformity h as b een i dentified, d escribed a nd c onsidered .I n t he appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative -authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the subject property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed fore such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. (179) CAPITAL REALTY ANALYSTS REAL ESTATE MflWsm • ANALYSTS • ADVOOM 7 3 4 74 Assumptions and Limiting Conditions 12. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate allocations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13. Except for use in the Official Statement as required for bond issuance, possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualification and only it its entirety. 14. The' appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property. in question unless arrangements have been previously made. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, t he i dentity o f t he a ppraiser, o r t he f irm w ith which t he a ppraiser i s c onnected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 16. Improved Properties - The Americans with Disabilities Act ("ADA") became effective January 26, 1992. 1 (we) have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various. detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the, requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since I (we) have no direct evidence relating to this issue, I (we) did not consider possible non-compliance with the requirements of ADA in estimating the value. of the property. 17. Improvements, Proposed Improvements - The value estimates in this report are subject to the improvements being completed in the manner represented to. the Appraiser(s), and described in the Improvement Description section of this report. Is. The legal descriptions, site sizes, 'dimensions and/or other surveys provided to the appraiser, including County Tax Plats, are assumed to be accurate. Should a survey prove these characteristics inaccurate, it may be necessary for the appraisal to be adjusted. 19. The forecasts, projections, or operation estimates contained herein are based upon current market conditions, anticipated short-term supply and demand factors, and a continued state economy. These forecasts are therefore, subject to change. in the future. 20. The appraiser undertaking this assignment warrants that he is competent in properly identifying the appraisal problem and has the necessary knowledge and experience to complete the assignment. (180) CAPITAL REALTY ANALYSTS 0— C—.—ADD2usv*e•AMALVSn*ADVISM 75 735 MICHAEL A. SCARCELLA, MAI Education t— 1982 B.S., Business, University of Nevada, Las Vegas 1991 — Real Estate Appraisal Principles 1992 - Basic Valuation Procedures 1992 Standards of Professional Practice 1993 - Basic Income Capitalization . 1993 - Advanced Income Capitalization 1994 - Report Writing & Valuation Analysis 1995 -Advanced Applications 1996 - Federal & State Laws &.Regulations 1997 - Standards Part A & B 1997- Property Management 1997 - Real Estate Economics 1997 - Real Estate Finance 2000 - Report Writing 2001 - Tax Free Exchanges Professional Organizations/Licensing Member of the Appraisal Institute - MAI Member Number 11072 Licensed by the State of California as a "Certified General Real Estate Appraiser'. Office of Real Estate Appraisers, Appraiser Identification Number AG 019463. Appraisal Institute — So. Cal. Chapter, 1997, 1998, 2001 Experience Review Committee;. 1999, 2000 So. Cal. Chapter Ethics Committee FAA Certificated Pilot #551317536 General_ Experience 1997 to Current Capital Realty Analysts — President .1991 to 1996 -MacKenzie and Associates — Staff Appraiser 1982 to 1991 - Hotel, Construction / Development Controller Qualified as an expert real estate witness, United States Bankruptcy Court Qualified as an expert real estate witness, Riverside County Superior Court Representative List of Clients Public Sector United States Of America RTC/FDIC Bureau of Indian Affairs BLM State of California State of Arizona Riverside County City of Palm Springs City of Cathedral City City of Rancho Mirage City of Palm Desert City of Indian Wells City of Indio City of La Quinta P.S. Unified School District Desert Sands School District Southern California Edison Mojave Water Agency Desert Hospital Private Sector Price Waterhouse Merrill Lynch CB Commercial Textron Bechtel Corporation KSL Recreation Corp. United States. Filter Sunrise Company Canyon Development Magellan Corporations Temple Construction Santa Fe Pack Takenaka Corporation Betty Ford Center Heart Institute of the Desert Basic Capital Management Developers Attorneys Accountants Bank of America Home Savings Wells Fargo Bank El Dorado Bank. Washington Mutual Bank Bank Midwest . Pacific National Bank Canyon National Bank Banc One Fidelity Federal Bank Bankers Trust Company First Community Bank Union Bank Commerce Federal Svgs Great American Bank Mitsubishi Bank Foothill Independent Bank Valley Independent Bank First Bank (1>31) I.APITAL I'LLAI+I i t"Au 10A0 REAL ESTATE MPRALUM • ANALYM • ADVISORS 76 736 NOTIFICATION OF RIGHT TO CLAIM LOSS OF BUSINESS GOODWILL The City wishes to acquire a portion of the property situated at (Address), California for the purpose of the Jefferson Street Widening Project, Phase 2. You have received this "Notification of Right to Claim Loss of Business Goodwill" because you have been identified as the owner of the property. In certain circumstances, the owner of a business operating on property subject to eminent domain may be entitled to claim compensation for loss of business goodwill, when it can be shown the loss is caused by the acquisition of property by the acquiring public entity, or by the project for which the property is sought to be taken. The City's offer of just compensation included in this letter does not include any amounts for loss of business goodwill. If you own or operate a business on the property which is the subject of this offer letter, you are requested to review this "Notification of Right to Claim Loss of Business Goodwill," and the "Claim for Loss of Business Goodwill," and "Loss of Business Goodwill Questionnaire" attached hereto. If you do not own or operate a business on the property, but know of a person or entity who does, you are requested to notify the City with the name, phone number, and, address of such person or entity, so that these forms can be forwarded to the appropriate party. California law provides that under the circumstances detailed below, a business owner may be compensated for a loss of goodwill. Section 1263.510 of the California Civil Code of Procedure states: (a) The owner of a business conducted on the property taken; or on the remainder if such property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following: 1. The loss is caused by the taking of the property of the injury to the remainder. 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill 3. Compensation for the loss will not be included in payments under Section 7262 of the Government Code.' 4. Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. ' Section 7262 of the Government Code refers to compensation to displaced persons for moving .and related expenses as a part of the cost of the acquisition of real property for a public use. Compensation for the loss of goodwill under Section 1263.510 of the California Civil Code of Procedure will only be made to the extent such loss is not compensated for under Section 7262. For more information regarding a business owner's eligible payments under the Relocation Assistance Program, please call Kathy Woolley at 760-772-4255. 419365.01 a000/29/03 -7 77737 (b) Within the meaning of this article, "goodwill" consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill _or quality, and any other circumstance resulting in probable retention of old or acquisition of new patronage. If you wish to file a claim for loss of goodwill at this time, please complete, sign, and return the attached Claim for Loss of Business Goodwill and Loss of Business Goodwill Questionnaire within sixty (60) days of the date of this notice. In addition, please submit the information requested below. This information will assist the City in completing an analysis concerning the claim for a loss of goodwill. However, if you wish to wait until a later date to make a claim for loss of goodwill, please send us the claim, questionnaire and the other requested information at that time. 5. State of California Income Tax Returns The law places the burden upon the business owner to provide state tax returns pertaining to the business to support the claim for loss of goodwill. Please supply true copies of your tax returns for the last five tax years, or your period of ownership if less than five years. : 6. Business Financial Statements Please provide true copies of your Balance Sheets, Profit and Loss Statements and/or Cash Flow Statements for the current year to date and each of the prior five years or your period of ownership, if less than five years. 7. Tangible Assets Include a list of the furniture, fixtures, machinery and equipment belonging to your business. Please use the itemization sheet attached to the questionnaire.. 8. Intangible Assets Include a list of such assets as patents, liquor licenses, etc. Please use the itemization sheet attached to the questionnaire. 9. Business Purchase Documentation If you have purchased the business within the last five years, please provide true copies of documentation (escrow instructions, purchase agreement, bill of sale, etc.) which provide details of the transaction including financing, the assets purchased, agreements not to compete, and how the total purchase price was allocated to inventory, fixtures, equipment, licenses, goodwill, etc. A loss of goodwill analysis and valuation normally includes a personal interview with the business owner. An interview will be scheduled after we receive the requested information. 119/015610-WOS .-8- 78 738 419365.01 aO7/29/03 CLAIM FOR LOSS OF BUSINESS GOODWILL Business: Business Address: This form and the attached completed, signed questionnaire with tax returns and other supporting documentation constitute formal notification to the City, that the owner(s) of the above business entity contend(s) that the business will suffer a compensable loss of business goodwill due to its displacement or disruption by the proposed project. 1. Our estimate of total goodwill is $ 2. Our estimate of the compensable loss of goodwill is $ 3. The loss of goodwill after taking measured to minimize the loss is caused by: 4. The following measures will minimize the loss of goodwill: The undersigned owner or duly authorized officer has executed this notification on behalf of this business operation. Name: Title: Date Address: 119/015610-0008 _739 419365.01 a07/29/03 _9 79 • LOSS OF BUSINESS GOODWILL QUESTIONNAIRE Business Owner: Business Name: Business Address: Type of Ownership: Business Identification Number: 1. What type of business do you operate? What type of products are sold or manufactured? What type of services are provided or sold? 2. When was the business started? 3 When did you obtain ownership of the business? 4. How long has the business been at the above address? 5. What type of clientele does the business have? Do you have key customers or clients? 6. From what geographic area does the business draw its patronage? What percentage of the business volume is drawn from each of those areas? 7. Does the business operate at any other location? If so, where and what percentage of total business volume is generated from each of the other locations? 8. Is the business part of a chain? Is it a franchise? If so, provide details including fees, marketing agreements, etc. 9. Who are the business's major competitors? Where are they located? (If more room is needed for any answers, please insert additional sheets and continue by number.) 740 119/015610-0008 -10- 80 419365.01 a07/29/03 10. How many days a week is the business open? What are its hours of operation? 11. How many persons are employed by the business? Please provide the following? Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 12. What were the main factors you considered in operating your business at the present location? What are the locations' advantages? Disadvantages? 13. What improvements did you make to the present location in order to open for business? 14. If you are a tenant, to what improvements do you claim ownership? 15. Were there any special requirements to open for business, e.g., rezoning, permits, special use permits, health and safety permits, environmental report, etc.? Please provide details. 16. What area of the entire property does your business occupy? Land Improvements sq. ft. sq. ft. 17. If you are a tenant of the area you lease, how much, if any, is not used in your current business operation? Land sq. ft. Improvements sq. ft. 18. What future plans (expansion, etc.) do you have for the business? Please give specifics. 19. Did you have any prior plans to relocate the business? If so, where and when? 20. What would be your site and building requirements at a new location? a. Type of building (freestanding, strip center, storefront, etc.): b. Building size: C. Site size: d. Site distance from existing location: e. Parking requirements: f Utility requirements: g. Loading docks? Truck? Rail? 741 119/015610-0009 -1 1- 01 419365.01 a07/29/03 O h. Other special plant, service, or locational needs: i. Monthly rental (range): 21. Describe what problems, if any, you foresee in re-establishing the business? 22. Have you looked for or found a replacement location because of the State's project? Have you made any relocation plans? If so, provide details. 23. What, in your opinion, is the market value that a knowledgeable buyer would pay for your present business? Allocate as follows: Value of the tangible assets: $ Value of the intangible assets: $ Value of the goodwill: $ Total value: $ 24. What is your estimate of loss of the goodwill which may result from relocation or disruption of your business? 25. What do you believe would cause this loss of goodwill? Do you believe the loss would be temporary or permanent? 26. What reasonable steps can you take to avoid or reduce this loss of goodwill? 27. How would you perform these steps? 28. What do you think the cost of these steps would be? 119/015610-0008 -12- 82 742 419365.01 a07/29103 • If you have already relocated or will remain at the existing location but have suffered a disruption in your business at the time you submit your claim, please answer the following. questions: 29. The address of the new location (if applicable). 30. Date business closed at the old location and the opening date at the new location. 31. Price paid for new location or copy of lease/rental agreement. 32. Improvements made and their individual cost, in order to reopen (or continue) business. 33. In its relocated or disrupted state, what area of the entire property does your business occupy? Land sq. ft. Improvements sq. ft. 34. Hours of operation at the new location. 35. How many persons are employed in your relocated or disrupted business? Please provide the following: Position Days/Week Worked Hours/Week Worked Pay Owner Manger Others (list by job title) 36. Market area served at new or disrupted location. 37. Customers lost, if any at new or disrupted location. 38. Number of new customers at new or disrupted location. Please include the signature of person preparing the answers to this questionnaire and nature of interest in the business. Name: Interest: Date: 743 119/015610-0008 _ 419365.01 a07/29/03 -13 83 ATTACHMENT 2 4 P.O. Box 1504 78-495 CALLS TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 December 29, 2003 Milan Nikolich Mila Nikolich 82667 Sky View Lane Indio, CA 92201 Re: ASSESSOR'S PARCEL, NUMBER 649-071-015 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46235 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46235 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-071-015 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to.Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA"). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in 119/015610-0008 458250.01 a12/24/03 847 4 4��3 Tenant December 29, 2003 Page 2 this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may continence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled, in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La 119/015610-0008 $ 5 745 458250.01 a12/24/03 Tenant December 29, 2003 Page 3 Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available, for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yours, M. Zatherine J nson City Attorney, City of La Quinta Attachment 119/015610-0008 458250.01 ai2/24/03 86 746 ATTACHMENT f LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 24 Of Tract 2190, As Per Map Recorded In Book 41 Pages 55, 56, And 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-071-015 87 747 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certai Real Property Located At 46235 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Tenant 46235 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collectioi and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same c in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after dal of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) - (Sature) 88 748 20461015610-0008 463467.01 a12/29/03 .C' P.O. Box 1504 78-495 CALLS TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 December 29, 2003 Milan Nikolich Mila Nikolich 46235 Jefferson Street La Quinta, CA 92253 Re: ASSESSOR'S PARCEL NUMBER 649-071-015 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46235 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46235 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-071-015 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project'). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQA" ). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in 119/015610-0008 1'J 458250.01a12/24/03 89 { 4C9 Milan Nikolich Mila Nikolich December 29, 2003 Page 2 the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental 119/015610-0008 90 J O 458250.01 a12/24/03 • Milan Nikolich Mila Nikolich December 29, 2003 Page 3 Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yours, M. Katherine Jenson City Attorney, City of La Quinta Attachment 119ro15610"8 91 751 459250.01 a12/24ro3 ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 24 Of Tract 2190, As Per Map Recorded In Book 41 Pages 55, 56, And 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-071-015 92 752 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certaij Real Property Located At 46235 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Milan Nikolich Mila Nikolich 46235 Jefferson Street La Quinta, CA 92253 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collectior and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same c in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after dal of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 2046/015610-0008 463467.01 a]2129/03 93 753 P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 December 29, 2003 Tenant 46235 Jefferson Street La Quinta, CA 92253 (760) 777-7000 FAX (760) 777-7101 Re: ASSESSOR'S PARCEL NUMBER 649-071-015 Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certain Real Property Located At 46235 Jefferson Street In La Quinta, California Dear Property Owner or Tenant: This notice is sent to you under the requirements of California Code of Civil Procedure Section 1245.235. This notice concerns the City of La Quinta's plans to consider acquiring, by eminent domain, the property located at 46235 Jefferson Street, in the City of La Quinta, and bearing the Riverside County Assessor Parcel No. 649-071-015 (the "Property"). The City of La Quinta has been investigating the acquisition of this Property for the widening of Jefferson Street, Jefferson Street Improvement, Phase II, Highway 111 to Indio Boulevard, Project 2000-19 (the "Project"). California Code of Civil Procedure Section 1240.030 provides that a City may exercise the power of eminent domain to acquire property for a proposed public project if the following conditions are established: A. The public improvement and necessity require the project. B. The project is planned or located in the manner that will be most compatible with the great public good and the least private injury. C. The property sought to be acquired is necessary for the project. D. The offer required by Section 7267.2 of the Government Code has been made to the owner of record. E. The City has complied with all other procedural requirements for utilizing the power of eminent domain to acquire the property, including review under the California Environmental Quality Act ("CEQN). This notice is sent to inform you that the City Council of the City of La Quinta will be asked to decide if the above conditions have been met, concerning the City's acquisition of the above - referenced Property. A Public hearing will be held at or about 7:00 p.m. on February 3, 2004, in the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for 119/015610-0008 458250.01 OVUM Milan Nikolich Mila Nikolich December 29, 2003 Page 2 the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California 92253, for this purpose. If the City Council finds that these conditions have been met, the City Council will be asked to adopt a resolution of necessity, which is a prerequisite for the City's initiation of eminent domain proceedings to acquire property. For your information and convenience, a legal description of the Property is attached to this notice. Please be advised that you are entitled to appear and be heard on any of the matters encompassed within the resolution, and specifically those matters listed above. The City asks that you provide notice that you intend to do so in writing not less than fifteen (15) days before the scheduled hearing date, but your failure to meet this fifteen -day time frame will not result in the City's refusal to consider any points you may wish to make at the hearing. You may make this written request with the City Clerk of the City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253. Please take notice that if you wish to legally challenge any action taken by the adoption of the resolution of necessity, or any of the findings or matters included within it, including the City's right to use eminent domain to acquire the Property, you may be limited in court to raising only those issues raised at the resolution of necessity hearing, or in written correspondence delivered to the City no less than fifteen days prior to the hearing on the matter. The City must adopt a resolution of necessity before an eminent domain proceeding can commence. Within six months after the adoption of a resolution of necessity, the City may commence eminent domain proceedings in the Riverside County Superior Court, Indio Branch. In any such proceeding, the court will be asked to determine the amount of just compensation to which you may be entitled in the event the Property is taken in eminent domain. For your information, on August 19, 2003, the City Council of the City of La Quinta adopted Resolution No. 2003-076, wherein it certified an Addendum to Initial Study/Mitigated Negative Declaration for Environmental Assessment 99-378 (State Clearinghouse No. 99031046) - Phase II of the Jefferson Street Improvements (segment between Highway 111 and Westward Ho Drive). On August 20, 2003, the City filed a Notice of Determination regarding the certification of the Addendum with the Riverside County Clerk in compliance with Section 21152 of the Public Resources Code. The Addendum found that no effects on the environment are anticipated that cannot be reduced to a level of insignificance as a result of this Project based on the previously certified Mitigation Measures adopted by the City Council on May 18, 1999, under Resolution 99-66. The Addendum further supports that the Project modifications involved will not result in significant environmental impacts. The Addendum was prepared in accordance with CEQA Guideline 15162, and concludes that no further environmental review is necessary for the acquisition and construction of the proposed roadway improvements. In considering the resolution of necessity, the La Quinta City Council will be asked to utilize this Addendum, along with the original Initial Study/Mitigated Negative Declaration for Environmental Assessment 99- 378. The Addendum, the Initial Study/Mitigated Negative Declaration for Environmental 755 119/015610-0008 458250.01 a12/24/03 95 Milan Nikolich Mila Nikolich December 29, 2003 Page 3 Assessment 99-378, and Resolution No. 2003-076 are available for inspection and copying at La Quinta City Hall, Public Works Department, located at 78-495 Calle Tampico, La Quinta, California 92253, from 8:00 a.m. to 5:00 p.m., Monday through Friday. In addition, please be advised that on November 18, 2003, the City adopted the Relocation Plan for the Jefferson Street Widening Project, Phase II, La Quinta, California, prepared by Overland, Pacific & Cutler, Inc. Copies of the relocation plan are available for review at the same address noted above. Please understand that neither the pendency of the City's consideration of the resolution of necessity, nor the possible initiation of formal eminent domain proceedings, in any way prevents further negotiations from occurring for the acquisition of your Property, and the City is most willing to continue such negotiations. If you have any comments or questions, please do not hesitate to contact me, Kathy Jenson, at (714) 641-3413. Thank you for your cooperation in this matter. Very truly yours, M. Katherine Jenson City Attorney, City of La Quinta Attachment 119/015610-0008 96 756 458250.01 a12/24/03 0 • ATTACHMENT LEGAL DESCRIPTION OF PROPERTY The land referred to is situated in the State of California, County of Riverside, City of La Quinta, and is described as follows: Lot 24 Of Tract 2190, As Per Map Recorded In Book 41 Pages 55, 56, And 57 Of Maps, In The Office Of The County Recorder Of Said County. APN 649-071-015 97 757 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE BY MAIL STATE OF CALIFORNIA, COUNTY OF ORANGE I am employed by the law office of Rutan & Tucker, LLP in the County of Orange, State California. I am over the age of 18 and not a party to the within action. My business address is 611 Anton Boulevard, Fourteenth Floor, Costa Mesa, California 92626-1931. On December 29, 2003, I served on the interested parties in said action the within: Notice Of Intention To Adopt A Resolution Of Necessity For Acquisition Of Certaii Real Property Located At 46235 Jefferson Street In La Quinta, California by placing a true copy thereof in sealed envelope(s) addressed as stated below: Milan Nikolich Mila Nikolich 82667 Sky View Lane Indio, CA 92201 In the course of my employment with Rutan & Tucker, LLP, I have, through first-hand personal observation, become readily familiar with Rutan & Tucker, LLP's practice of collection and processing correspondence for mailing with the United States Postal Service. Under that practice I deposited such envelope(s) in an out -box for collection by other personnel of Rutan & Tucker, LLP, and for ultimate posting and placement with the U.S. Postal Service on that same c in the ordinary course of business. If the customary business practices of Rutan & Tucker, LLP with regard to collection and processing of correspondence and mailing were followed, and I an confident that they were, such envelope(s) were posted and placed in the United States mail at Costa Mesa, California, that same date. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after dat of deposit for mailing in affidavit. Executed on December 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. Lauren Yersick (Type or print name) 2046/015610-0008 463467.01 a12/29/03 98 758 mi �1 I k-ou 759 99 (, ATTACHMENT 4 Westward Ho Property Owners A&WiSation .. o• La Quinta City Council Members Ch An From: Jefferson Street Property Owners Date: ti Dear Council Members; The property owners on Jefferson Street that will be att4mced by the road widening, wish to bring this informative letter to the attention of the La Quinta City Council. There are i & homes and S" lots between the wash and Westward Ho Drive. The names that appear below have stated they prefer to have their homes and lots purchased by the City under Eminent Domain. The owners on both sides of Jefferson Stree 4*ve shown a majority of signatures below. This fact would make the case for widening the street equally on both sides rather than bend it either way. 1. Name Addre 2. Name Addri 3. Name Address 4. Na Ad S. Name Addri 6. Name Addri 7. Name Addri 100 760 13 4 - Westward 146 Property Owners' Association C-9 S. Name G Address 4/0 9. name Addre 10. Nam Addi a lew-rdcr 1 l .Name k. Address +in - ► �;- �� '� �.i ,�� 12. Name Addr 13. Name Add ri 14. Name w►�.•• Address o L. 15. Name Address y 16. Name Address `• c. Y7 17. Name Address 18. Name Address 4Y7 j 7F1 79860 Fiesta Drive 9 La Quinta, CA 92253 • (619) 347-8351 1 — lr;z rvzzii srn.rr ATT W, 1 1 a a = �Y9 � _ 11 • r. it 762 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. OEV. + KATHY JENSON IM002/004 ATTACHMENT 6 PLANNING COMMISSION RESOLUTION 2003-059 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING FINDINGS OF CONFORMITY IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 65402, FOR A POTENTIAL ACQUISITION OF PROPERTY FOR THE WIDENING OF JEFFERSON STREET. GENERAL PLAN CONFORMITY FINDING APPLICANT: CITY OF LA QUINTA WHEREAS, said Section 65402 requires the jurisdiction's planning agency's (i.e., Planning Commission) review and report upon whether the proposed acquisition of real property for public purposes is consistent with the adopted General Plan; and WHEREAS, the Planning Commission of the City of La Quints, California did on the 12th day of August, 2003, hold a pubic meeting to consider a finding of conformity with the General Plan for said potential Project Site, more particularly described as, APN: 849-071-008 THROUGH 021 AND 029; 649-090-001 THROUGH 009; AND 649-141-001 WHEREAS, the Planning Commission did make the following findings of conformity with respect to the proposed project: The proposed acquisition is in conformance with the La Quinta General Plan, as follows: 1. LAND USE ELEMENT: The recently adopted General Plan Land Use Element designates the properties as Low Density Residential (LDR), up to four dwelling units per acre. The Element indicates the need to maintain compatible high quality land uses. The widening of Jefferson Street will not alter the surrounding land use designations, and Is consistent with the Element. 2. CIRCULATION ELEMENT: This Element designates Jefferson Street as a Major Arterial Road with a 120 foot width right-of-way. This project will allow the street to be expanded to comply with this Element. 3. OPEN SPACE ELEMENT: No key planning issues or policies are identified. 4. PARK AND RECREATION ELEMENT: No key planning issues or policies are identified. 763 102 01/22/2004 12:50 FAX 7807771233 LA QUINTA COMM. BEV. + KATHY JENSON IM003/004 Planning commission Resolution 2003-059 Jeffstsen Street Widening • General Plan Conformity Finding , Adopted: August 12, 2003 Pape 2 5. ENVIRONMENTAL CONSERVATION ELEMENT: No key planning issues or policies are identified. 8. NATURAL RESOURCES: This Element provides several policies and programs designed to protect and preserve the unique and/or valuable resources, including biologic resources. The properties at issue are disturbed. To the extent applicable, this project will be subject to the requirements of the Coachella Valley Fringe -Toed Lizard Fee Mitigation Program and other applicable mitigation measures. 7, INFRASTRUCTURE AND PUBLIC SERVICES ELEMENT: No key planning issues or policies are identified. 8, ENVIRONMENTAL HAZARDS ELEMENT: This Element indicates that the site is within an area that is susceptible to wind-blown sand, collapsible soils, potential liquefaction hazard, and seismically induced settlement. If the properties are acquired, the widening of Jefferson Street will most all applicable engineering requirements, and the street and landscape Improvements will reduce the potential for blowsand in the vicinity of the subject property. 9. CULTURAL RESOURCES ELEMENT: No key planning issues or policies are identified. 10. HOUSING ELEMENT: As a result of widening Jefferson Street the project requires acquisition of residential and vacant lots, Acquisition of the residential properties will.not displace substantial numbers of people or existing housing, and will not necessitate the construction of replacement housing elsewhere, because the acquisition involves a relatively small number of properties and the current housing conditions reveal that there is more than adequate existing housing in La Quinta to accommodate the displaced households. Likewise, state mandated relocation benefits will be paid to applicable displaced persons In accordance with the Uniform Relocation Assistance & Real Properties Act of 1970, as amended, and owners of the residential property will be compensated _ fair market value for their property,. determined on the basis of the highest and beat use. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the recitations are true and constitute the findings of the Planning Commission in this case; and P:10scar\Reso1utionslreso Jefferson st.doc 103 7P 4 01/22/2004 12:51 FAX 7807771233 LA QUINTA CONN. DEV. KATHY JENSON IA 004/004 Planning Commi■sion Resolution 2003.069 Jefferson Street Widening - General Plan Conformity Finding Adopted: August 12, 2003 Page 3 2. That it does hereby adopt this finding of conformity for the reasons set forth in this Resolution, and as shown on the Map attached hereto as Exhibit "A". PASSED, APPROVED and ADOPTED at a regular meeting of the La Quints Planning Commission held on this 12th day of August, 2003, by the following vote to wit: AYES: Commissioners Abels, Daniels, Tyler, and Chairman Kirk NOES: None ABSENT: Commissioner Quill ABSTAIN; None ATTEST: tRRY HErRMAN, Community Development Director ity of La Quints, California P:10scsrl8sso1ut1ons\reso Jefferson st.doo AiRK, Chairman of La Quinta, California 104 7`5 /ry�T COUNCIL/RDA MEETING DATE: February 3, 2004 ITEM TITLE: Public Hearing to Adopt an Ordinance and Resolution of the City Council Considering Zoning Code Amendment 2003-080, a Request to Amend Section 9.160.080 - Semi -permanent Downtown Village Directional Signs, of the La Quinta Municipal Code to Allow Additional Sign Panels and Other Minor Amendments and Amendments to the Memorandum of Agreement Between the City and the La Quinta Chamber of Commerce RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: _ PUBLIC HEARING: Move to take up Ordinance No. _ by title and number only and waive further reading. Move to introduce Ordinance No. on first reading amending Section 9.160.080 of the Municipal Code, to allow additional sign panels and other minor amendments Adopt a Resolution of the City Council amending a Memorandum of Agreement between the City and the La Quinta Chamber of Commerce regarding the location and management of the Semi -permanent Downtown Village Directional Sign Program within the City's public right-of-way. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On March 19, 1996 the City Council adopted Ordinance No. 281, creating the provisions for the Semi -permanent Downtown Directional Sign Program as contained in Section 9.160.080 of the Zoning Code (Attachment 1). 766 On January 21, 1997 the City Council adopted Resolution No. 97-02 authorizing the City to enter into a Memorandum of Agreement (MOA) with the La Quinta Chamber of Commerce to administer the provisions of the Directional Sign Program as permitted in Section 9.160.080 of the Zoning Code (Attachment 2). On October 28, 2003 the Planning Commission considered a request from Old Town La Quinta (Liz Davies) requesting the name "Old Town" be added to the directional signs with the same font contain in their letterhead. The Commission determined that the panel lettering should be uniform and rejected the request. At the City Council meeting of November 4, 2003, the City Council, pursuant to Section 9.200.120, Appeals, called -up for review the action of the Planning Commission regarding their decision on the Semi -permanent Downtown Directional Sign Program. At the November 18, 2003 Council meeting, Council reviewed the request and directed staff to prepare the necessary Zoning Code Amendment to approve the letter style change to the sign panels. In addition, Council directed staff to consider the Chamber of Commerce requested amendment to the Semi -permanent Downtown Village Directional Sign regulations. Request The Chamber of Commerce letter (Attachment 3) is requesting: 1. That two additional sign panels be added to each sign currently in place; 2. Allowing more than 11 months for a sign panel to remain up when there is no waiting for that particular sign location; 3. More than two lines of print on each panel. The Chamber of Commerce has been designated as the administrator of the Semi- permanent Downtown Sign Program with the adoption of City Council Resolution 97- 02 approving the MOA. By amending the Zoning Code to allow the requested changes, the Council must also amend the MOA with the Chamber. Planning Commission Action On January 13, 2004, the Planning Commission conducted a public hearing to consider this matter and recommended the City Council adopt a Zoning Code amendment to allow additional sign panels and other minor amendments (Attachment 4). The Exhibit to the Ordinance provides the changes recommended by the Planning Commission. The Planning Commission did not review the MOA, as it is a Council action only, as noted in the Section 9.160.080. The Council Resolution Exhibit provides the changes to the MOA. 767 02 FINDINGS AND ALTERNATIVES: The findings necessary to approve this request can be made, and are included in the attached Resolutions. The alternatives available to the City Council include: 1. Move to take up Ordinance No. _ by title and number only and waive further reading. Move to introduce Ordinance No. _ on first reading amending Section 9.160.080 of the Municipal Code, to allow additional sign panels and other minor amendments Adopt a Resolution of the City Council amending a Memorandum of Agreement between the City and the La Quinta Chamber of Commerce regarding the location and management of the Semi -permanent Downtown Village Directional Sign Program within the City's public right-of-way; or 2. Do not adopt an Ordinance or Resolution approving the changes to the Semi- permanent Sign Program or Memorandum of Agreement; or 3. Remand the request to the Planning Commission for further consideration; or 4. Continue the request and provide staff with alternative direction. Respectfully submitted, unity Development Director Approved for Submission, Thomas P. Genovese, City Manager Attachments: 1. Zoning Code Section 9.160.080 2. Resolution 97-02 3. Chamber of Commerce letter 4. Planning Commission minutes of January 13, 2004 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING CHAPTER 9.160, SECTION 9.160.080 — SEMI -PERMANENT DOWNTOWN VILLAGE DIRECTIONAL SIGNS, OF THE LA QUINTA MUNICIPAL CODE TO ALLOW ADDITIONAL SIGN PANELS AND OTHER MINOR AMENDMENTS CASE NO.: ZCA 2003-080 APPLICANT: CITY OF LA QUINTA THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of La Quinta, California, did on the 3`d day of February, 2004 hold a duly noticed Public Hearing to amend Section 9.160.080 of the Municipal Code, to allow additional sign panels and other minor amendments; and SECTION 2. The Planning Commission of the City of La Quinta, California, did on the 13`h day of January, 2004, hold a duly noticed Public Hearing to amend Section 9.160.080 of the Municipal Code, to allow additional sign panels and other minor amendments; and SECTION 3. The Text Amendment is exempt pursuant to Chapter 2.6, Section 21080 of the Public Resources Code, California Environmental Quality Act statutes, and Section 15268, Ministerial Projects, of the CEQA Guidelines; and SECTION 4. The proposed text changes are consistent with the goals and policies of the La Quinta General Plan, and the Land Use Map for the General Plan and surrounding development and land use designations, ensuring land use compatibility; and SECTION 5. The proposed text changes as contained in Exhibit "A," attached hereto, will not be detrimental to the public health, safety and welfare, as they have been designed to be compatible with surrounding development, and conform with the City's standards and requirements; and SECTION 6. The proposed text changes support the orderly development of the City; and SECTION 7. This Ordinance shall be in full force and effect thirty (30) days after its adoption; and 7P)9 Ordinance No. _ Zoning Code Amendment 2003-040 Semi -Permanent Downtown Village Sign Program Adopted: SECTION 8. The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED and ADOPTED this day of , 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DONALD ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON , City Attorney City of La Quinta, California 770 015 Ordinance No. _ Zoning Code Amendment 2003-040 Semi -Permanent Downtown Village Sign Program Adopted: EXHIBIT "A" 9.160.080 SEMI -PERMANENT DOWNTOWN VILLAGE DIRECTIONAL SIGNS. A. Purpose. To provide vehicular direction to specific businesses which, due to their location within the boundaries of the "Village at La Quinta speeifie plan area Commercial Zoning District" and away from major arterials, are difficult to find. B. Definition. "Downtown Village directional sign panel" means an interchangeable sign panel which does not require a sign permit, mounted on a monument base structure. The sign panels list businesses in the Village at La Q pinta aFea Commercial Zoning District. C. Maximum Time Periods. No Downtown Village Directional Sign panel shall be installed for more than eleven consecutive months out of any twelve-month period. However, a sign panel may be installed for more than eleven consecutive months if there is no waiting list for commercial business on that sign panel. A log containing T;e-Qate� the installation date of all sign panels shall be maintained by the contracted group or agency. This log shall be made available to the City upon request, and submitted annually to the City. mad(ed en the leweF Fight hand eeFneF ef the face of the sign. D. Monument Base Structure, Size and Standards. Downtown Village Directional Sign panels shall only be installed in approved monument base structures which conform to the following standards: 1. Structures shall not exceed eight feet in height and six feet in width. 2. Structures shall contain no more than s+x eight sign panels per face or side. 3. Structures shall have no more than two faces or sides. 4. Structure shall include, at the top, a decorative cap or sign of maximum two feet six inches high and six feet wide. 5. The base shall be constructed of block, brick, wood, stone or other similar material. Q Design eenStMetien Baler and materia'S of e•tFUntUre and text shall_ 6n -76. No tag, sign, streamer, device, display board or other attachment may be added or placed upon the structure. E. Sign Panel Size and Standards. Downtown Village Directional sign panels which 771 Ordinance No. _ Zoning Code Amendment 2003-040 Semi -Permanent Downtown Village Sign Program Adopted: are mounted in the monument base structures shall be eight inches in height and five feet wide, and shall conform to the following standards: 1. The use of said sign panels shall be for the sole identification of any commercial businesses located and operating within the boundaries of the Village at La Quanta speeifie Plan area Commercial Zoning District. 2. Each sign panel shall contain the name of the business and a directional arrow on no more than two one lines . 3. Indirect lighting may be provided as set forth in Section 9.100.150. F. Sign Locations. Five structures shall be allowed with speei f.e leeatiens to he The specific location at each intersection shall be approved by the Director of Community Development and the Director of Public Works. The structures may be located in the City's right-of-way. If located in the right-of-way, an encroachment permit shall be obtained from the Director of Public Works. The structures shall be located for maximum readability and traffic/pedestrian safety. G. Installation. The city shall have the discretion to contract with a nonprofit group or nongovernmental agency to install and manage the sign panels and structures. Fees may be charged only to the extent necessary to cover costs for installation and subsequent maintenance. The group or agency chosen to administer the Semi -Permanent Downtown Village Directional Sign Program shall sign a Memorandum of Agreement with the city setting forth the scope of responsibilities and services to be provided. H. Maintenance. The group or agency contracted to install and manage the sign panels and structures shall be responsible for maintaining the panels and structures in good order at all times. Upon request by the City, sign panels and structures shall be repaired and/or maintained within thirty days of said request. Failure to repair/maintain sign panels and structures shall be cause for City to request removal or to remove. (Ord. 284 § 1 (Exh: A) (part), 1996) RESOLUTION 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING A MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CHAMBER OF COMMERCE REGARDING THE LOCATION AND MANAGEMENT OF THE SEMI -PERMANENT DOWNTOWN VILLAGE. DIRECTIONAL SIGN PROGRAM WITHIN THE CITY'S PUBLIC RIGHT-OF-WAY AS CONTAINED IN CITY COUNCIL RESOLUTION 97-02 VILLAGE SEMI -PERMANENT DIRECTIONAL SIGN PROGRAM WHEREAS, there exists a Memorandum of Agreement dated January 21, 1997 between the City of La Quinta and the La Quinta Chamber of Commerce; and WHEREAS, this Resolution is intended to amend Exhibit "A" of Resolution 97-02; and WHEREAS, the Chamber of Commerce is a not -for -profit organization that represents the business community of the City; and WHEREAS, the Chamber of Commerce has sufficient resources and willingness to successfully continue to administer and , coordinate a uniform directional sign program within the Downtown Village area of the City of La Quinta. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of La Quinta, California, does hereby authorize the City Manager to sign the modified Memorandum of Agreement (Exhibit A) with the La Quinta Chamber of Commerce for the continued administration and coordination of said program as provided for in Section 9.160.080 of the La Quinta Municipal Code. BE IT FURTHER RESOLVED that said Semi -permanent Downtown Village Directional Sign Program shall conform to the provisions as herein set forth: 1. The La Quinta Chamber of Commerce shall continue to assume all liability for the construction, maintenance, and administration of said Directional Sign Program at no cost whatsoever to the City. 2. The City has issued to the La Quinta Chamber of Commerce a blanket Encroachment Permit for the construction and installation of signs within the public right-of-way, and waived all fees. 73 `� 8 3. The City Council at its continued discretion reviewed the overall Semi- permanent Downtown Village Directional Sign Program and has caused changes to be made which it deemed necessary to ensure the continued provision or removal of said program. 4. The La Quinta Chamber of Commerce shall enter into this Amended Memorandum of Agreement with the City setting forth the Scope of Responsibilities and Services to be provided. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held this 3`d day of February, 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DONALD ADOLPH, Mayor City of La Quinta, California ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California n,g 774 MEMORANDUM OF AGREEMENT The City of La Quinta hereby designates the La Quinta Chamber of Commerce as the sole and exclusive provider of the Semi -Permanent Downtown Directional Sign Program. Said Program shall be conducted by the La Quinta Chamber of Commerce in accordance with all applicable City Codes and City of La Quinta Resolution 2004- (Exhibit "A", attached hereto). The Chamber of Commerce will provide the following services: Contact all applicable businesses contained within the area zoned and designated as " The Village Commercial Zoning District" by the City of La Quinta, and register them into the Program if they so desire. 2. Act as point of contact for businesses who are involved in the Program. 3. Communicate with business concerns and transactions to the Sign Company retained by the Chamber of Commerce to provide designated services. 4. Act as point of contact to handle all City concerns and/or requests. 5. Be directly responsible for the performance of duties by the Sign Company. 6. Directly invoice businesses for services rendered and pay the Sign Company for such services. 7. Arbitrate any differences between the Sign Company and businesses. 8. Design and install signs in accordance with City approved Programs and applicable City ordinances. 9. Maintain signs in good order at all times. Upon request by the City, sign panels and structures shall be repaired and/or maintained within 30 days of said request. Failure to repair/maintain sign panels and structures shall be cause for the City to request removal or to remove said signs. 10. Install approved identification header panels on all sign structures. 11. The Sign Program will be made available to all businesses within The Village Commercial Zoning District at one price, irrespective of marketing within the La Quinta Chamber of Commerce. 10 7,75 1 Memorandum of Agreement La Quinta Chamber of Commerce Semi -Permanent Downtown Directional Sign Program February, 2004 12. No Downtown Village Directional Sign panel shall be installed for more than eleven consecutive months out of any twelve-month period. However, a sign panel may be erected for more than eleven consecutive months if there is no waiting list for a commercial business on that sign panel. A log containing the installation date of all sign panels shall be maintained by the contracted group or agency. This log shall be made available to the City upon request, and submitted annually to the City. a-?-13.The Chamber of Commerce further agrees to hold the City of La Quinta harmless from any claims for damages as a result of the erection or maintenance of any signs. The signs shall be the property of the La Quinta Chamber of Commerce. 4-3-.14.The Chamber of Commerce shall make vacant sign panels available to the City to be used for community service projects and public/City landmarks when requested by the City, based upon mutual agreement. The City of La Quinta agrees that the Sign Program shall be conducted by the La Quinta Chamber of Commerce for a minimum of one year from the signing of this Agreement, provided there is sufficient market demand. Thereafter, the City Council of the City of La Quinta may, upon a thirty (30) day written notification to the Chamber of Commerce, cancel this Agreement and require the Chamber to remove all signs and sign structures. The City Council of the City of La Quinta will give the La Quinta Chamber of Commerce fifteen (15) days written notice prior to any consideration of an action to cancel this Agreement. The sign structures and signs shall conform to the following general standards: 1. Structures shall not exceed eight (8) feet in height and six (6) feet in width. 2. Structures shall contain no more than si-x eight sign panels per face or side. 3. Structures shall have no more than two faces or sides. 4. Structure shall include, at the top, a decorative cap or sign of maximum two feet six inches (2'6") high and six (6') feet wide. 5. The base shall be constructed of block, brick, wood, stone or other similar material. 66. D�`"�ngr,e6rrrtMetie , GOIOF and FnateFiais Of StFuettWe and -text shall 13-e 11 2 Memorandum of Agreement La Quinta Chamber of Commerce Semi -Permanent Downtown Directional Sign Program February, 2004 -7 6. No tag, sign, streamer, device, display board or other attachment may be added or placed upon the structure. 8. Downtown Village Directional Sign Panels which are mounted in the monument base structures shall be eight (8) inches in height and five (5) feet wide, and shall conform to the following standards: a. The use of said sign panels shall be for the sole identification of any commercial businesses located and operating within the boundaries of the Village at La Quinta speei f;e planaFea Commercial Zoning District. b. Each sign panel shall contain the name of the business and a directional arrow on no more than two one lines. C. Indirect lighting may be provided as set forth in Section 9.100.150. 9. Five structures shall be allowed as appFOved by the Planning Go nd ate as follows: a. Calle Tampico and Washington Street — a single -sided sign. b. Calle Tampico and Avenue Bermudas — a double -sided sign. C. Calle Tampico and Eisenhower Drive — a double -sided sign. d. 52nd Avenue and Washington Street — a single -sided sign. e. 52nd Avenue and Avenida Bermudas — a single -sided sign. This Agreement constitutes the entire understanding and Agreement between the City of La Quinta and the La Quinta Chamber of Commerce. This Agreement integrates all of the terms and condition mentioned herein or incidental hereto, and supersedes all negotiation or previous agreement between the City and Chamber with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the City or the Chamber. 12 377� Memorandum of Agreement La Quinta Chamber of Commerce Semi -Permanent Downtown Directional Sign Program February, 2004 IN WITNESS WHEREOF, this Agreement has been executed by the City of La Quinta and the La Quinta Chamber of Commerce on this_ day of February, 2004, as authorized by City Council Resolution 2004-_ of the City Council of the City of La Quinta, California. MWASIAWTV61RO�r_1 By THOMAS P. GENOVESE, Its: City Manager ATTEST: JUNE S. GREEK, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California LA QUINTA CHAMBER OF COMMERCE By DIANE GLANZ Its: Chief Executive Officer 13 7!V8 • ATTACHMENT #1 9.160.080 Semipermanent downtown Village directional signs. A. Purpose. To provide vehicular direction to specific businesses which, due to their location within the boundaries of the "Village at La Quinta" specific plan area and away from major arterials, are difficult to find. B. Definition. "Downtown Village directional sign panel" means an interchangeable sign panel which does not require a sign permit, mounted on a monument base structure. The sign panels list businesses in the Village at La Quinta area C. Maximum Time Periods. No downtown village directional sign panel shall be installed for more than eleven consecutive months out of any twelve-month period. The date of installation shall be legibly marked on the lower right hand corner of the face of the sign. tin Q" S-M 350 9.160.080 D. Monument Base Structures -Size and Standards. Downtown Village directional sign panels shall only be installed in approved monument base structures which conform to the following standards: 1. Structures shall not exceed eight feet in height and six feet in width. 2. Structures shall contain no more than six sign panels per face or side. 3. Structures shall have no more than two faces or sides. 4. Structure shall include, at the top, a decorative cap or sign of maximum two feet six inches high and six feet wide. 5. The base shall be constructed of block, brick, wood, stone or other similar material. 6. Design, construction, color and materials of structure and text shall be approved by the planning commission. 7. No tag, sign, streamer, device, display board or other attachment may be added or placed upon the structure. E. Sign Panel Size and Standards. Downtown Village directional sign panels which are mounted in the monument base structures shall be eight inches in height, and five feet wide, and shall conform to the following standards: 1. The use of said sign panels shall be for the sole identification of any commercial businesses located and operating within the boundaries of the Village at La Quinta specific plan area. 350-1 OA QW s-M 9.160.080 2. Each sign panel shall contain the name of the business and a directional arrow on one line. 3. Indirect lighting may be provided as set forth in Section 9.100.150. F. Sign Locations. Five structures shall be allowed with specific locations to be approved by the planning commission. The specific location at each intersection shall be approved by the director of community development and the director of public works. The structures may be located in the city's right-of-way. If located in the right-of-way, an encroachment permit shall be obtained from the director of public works. The structures shall be located for maximum readability and traffic/pedestrian safety. G. Installation. The city shall have the discretion to contract with a nonprofit group or nongovernmental agency to install and manage the sign panels and structures. Fees may be charged only to the extent necessary to cover costs for installation and subsequent maintenance. The group or agency chosen to administer the downtown Village directional sign program shall sign a memorandum of agreement with the city setting forth the scope of responsibilities and services to be provided. H. Maintenance. The group or agency contracted to install and manage the sign panels and structures shall be responsible for maintaining the panels and structures in good order at all times. Upon request by the city, sign panels and structures shall be repaired and/or maintained within thirty days of said request. Failure to repair/maintain sign panels and structures shall be cause for city to request removal or to remove. (Ord. 79 284 § I (Exh. A) (Part), 1996)t 351 tv Quim 9-%) • * ATTACHMENT #2 RESOLUTION 97-02 A RESOLUTION OF THE CITY COUNCIL CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING AN AGREEMENT FOR THE LOCATION AND MANAGEMENT OF THE SEMI- PERMANENT DOWNTOWN VILLAGE DIRECTIONAL SIGN PROGRAM WITHIN THE CITY'S PUBLIC RIGHT-OF-WAY VILLAGE SEMI -PERMANENT DIRECTIONAL SIGN PROGRAM WHEREAS, there exists a need to coordinate the display of Downtown Village businesses directional signs, and to avoid a proliferation and unapproved signs in the City of La Quinta; and, WHEREAS, the La Quinta Chamber of Commerce is a not -for -profit organization that represents the business community; and, WHEREAS, the La Quinta Chamber of Commerce has sufficient resources and willingness to successfully administer and coordinate a uniform directional sign program within the Downtown Village area of the City of La Quinta; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of La Quinta , California, does hereby authorize the City Manager to enter into a Memorandum of Agreement ("Exhibit A) with the La Quinta Chamber of Commerce for the administration and coordination of said program as provided for in Section 9.160.080 of the La Quinta Municipal Code. BE IT FURTHER RESOLVED that said sign program shall conform to the provisions as herein set forth: 1. The La Quinta Chamber of Commerce shall assume all liability for the construction, maintenance, and administration of said sign program at no cost whatsoever to the City. 2. The City shall issue to the La Quinta Chamber of Commerce a blanket Encroachment Permit for the construction and installation of signs within the public right-of-way, and waive the fee for such permit. 3. The City Council at its discretion, may review the overall sign program and cause any changes it deems necessary to ensure the continued provision or removal of said program. 730 xEsocc.1s1 15 .7 • Resolution 97-02 4. The La Quints Chamber of Commerce shall enter into a Memorandum of Agreement with the City setting forth the Scope of Responsibilities and Services to be provided PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quints City Council held this 21 st day of January, 1997, by the following vote to wit: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Holt NOES: None ABSENT: None ABSTAIN: None .0 A ylzx/.� GLENDA L. HOLT, Mayor City of La Quints, California ATT T: AUNDRA L. JUHOLA, City Clerk City of La auinta, California APPROVED AS TO FORM 4 DAWN C. HONEYWELL, City Attorney City of La Quints, California ?31 16 MEMORANDUM OF AGREEMENT The City of La Quinta hereby designates the La Quinta Chamber of Commerce as the sole and exclusive provider of The Semi -Permanent Downtown Village Directional Sign Program. Said program shall be conducted by the La Quinta Chamber of Commerce in accordance with all applicable City Codes and City of La Quinta Resolution 97-02 (Exhibit "A", attached hereto). The Chamber of Commerce will provide the following services: 1. Contact all applicable businesses contained within the area zoned and designated as "The Village District" by the City of La Quinta, and register them into the Program if they so desire. 2. Act as point of contact for businesses who are involved in the Program. 3. Communicate with business concerns and transactions to the Sign Company retained by the Chamber of Commerce to provide designated services. 4. Act as point of contact to handle all City concerns and/or requests. 5. Be directly responsible for the performance of duties by the Sign Company. 6. Directly invoice businesses for services rendered and pay the Sign Company for such services. 7. Fees may be charged only to the extent necessary to cover costs for installation and subsequent maintenance. 8. Arbitrate any differences between Sign Company businesses. 9. Design and install signs in accordance with City approved Programs and any applicable City ordinances. 10. Maintain signs in good order at all times. Upon request by the City, sign panels and structures shall be repaired and/or maintained within 30-days of said request. Failure to repair/maintain sign panels and structures shall be cause for the City to request removal or to remove said signs. 11. Install approved identification header panels on all sign structures. 12. The Sign Program will be made available to all businesses within The Village District at one price, irrespective of marketings within the La Quinta Chamber of Commerce. 17 DOCJHCHAM-%w 782 Memorandum of Agreement Chamber of Commerce - Village Directional Sign Program 13. The Chamber of Commerce further agrees to hold the City of U Quinta harmless from any claims for damages as a result of the erection or maintenance of any signs. The signs shall be the property of the La Quinta Chamber of Commerce. 14. The Chamber of Commerce shall make vacant sign panels available to the City to be used for community service projects and public/City landmarks when requested by the City, based upon mutual agreement. The City of La Quinta agrees that the Sign Program shall be conducted by the La Quinta Chamber of Commerce for a minimum of one year from the signing of this Agreement, provided there is sufficient market demand. Thereafter, the City Council of the City of La Quints may upon a thirty (30) day written notification to the Chamber of Commerce cancel this Agreement and require the Chamber to remove all signs and sign structures. The City Council of the City of La Quinta will give the La Quinta Chamber of Commerce fifteen (15) days written notice prior to any consideration of an action to cancel this Agreement. The sign structures and signs shall conform to the following general standards: 1. Structures shall not exceed eight (8) feet in height and six (6) feet in width. 2. Structures shall contain no more than six (6) sign panels per face or side. 3. Structures shall have no more than two faces or sides. 4. Structures shall include, at the top, a decorative cap or sign of maximum two feet six inches (2-6") high and six (6) feet wide. 5. The base shall be constructed of block, brick, wood, stone, or other similar material. 6. Design, construction, color, and materials of structure and text shall be approved by the Planning Commission. 7. No tag, sign, streamer, devise, display board or other attachment may be added or placed upon the structure. Downtown Village Directional Sign Panels which are mounted in the monument base structure shall be eight (8) inches in height and five (5) feet wide, and shall conform to the following standards: a. The use of said sign panels shall be for the sole identification of any commercial businesses located and operating within the boundaries of The Village District area. DXMCH".S9nPr 18783 • • Memorandum of Agreement Chamber of cornmerce - Village Directional Sign Program b. Each sign panel shall contain the name of the business and a directional arrow on one line. C. Indirect lighting may be provided as set forth in Section 9.100.150. 9. Five structures shall be allowed as approved by the Planning Commission and are as follows: a. Calle Tampico and Washington Street - a single sided sign. b. Calle Tampico and Avenida Bermudas - a double sided sign. C. Calle Tampico and Eisenhower Drive - a double sided sign. d. 52nd Avenue and Washington Street - a single sided sign. e. 52nd Avenue and Avenida Bermudas - a single sided sign. This Agreement constitutes the entire understanding and Agreement between the City of La Quinta and the La Quinta Chamber of Commerce. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiation or previous agreements between the City and Chamber with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the City or of the Chamber. IN WITNESS WHEREOF, this Agreement has been executed by the City of La Quinta and the La Quints Chamber of Commerce on this //'day of 7r4Ln-j" 1997, as authorized by Resolution97-!2� of the City Council. ATI T: M1NDRA L. JUHOLA, City Clerk APPROVED AS TO FORM: DAWN C. HONEYWELL, City Attorney CITY OF LA QUINTA tl By t[fOMAS P. GENOVESE, City Manager LA QUINTA CHAMBER OF COMMERCE DATE: By 4 MICHELLE DALLAS, Executive Director 19 DoMCH"sgnlw IV Bill Lohman, Chairrnen of ti,e tiwru Rik erSid: cuunll. Calk VC)Rks C. it N Program Diane Gianz, cfo La Quinta Chan,her of Commerce Lini Handy, 1<l oce Chair Legislaiivc F. Ccnnrnunitvfiflairs 'ri(ia�c f'rrdHe Pu;li<I �in� David Howard, _'nril'iceCilcir Lvor'lb A I'l(gran1, Cite rkee1 Home, Scoff Scott Brooks, vi(echeir Viemhenhil; lien lcr� lf.i; Prink" • i U �FR OF` October 23, 2003 Mr. Tom Kirk, Chairman Planning Commission City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Dear Chairman Kirk: • ATTACHMENT #3 co U 1 O h On behalf of the La Quinta Chamber of Commerce, I would like to request a modification to The Semipermanent Downtown Village Directional Sign Memorandum of Agreement that was executed January 23, 1997. Lew Piper, rr(-a;urei Currently, we have erected four of the five signs allowed in the Agreement. G,,s( �,nl Pij)err"3s•°r-rat(! cP°, Each of these signs allows for 6 sign panels to display local businesses. Dr. Kurt A. Spurgin, D.C. Past chair Because .of the increased development and occupancy of commercial .d, i Physical Hea,lh Cent`' businesses in Old Town La Quinta, we are experiencing a permanent wait DIRECTORS list for access to these directional signs. Knowing that in the near future Stu Bailev more businesses will be locating in Old Town, we would like to add 2 l additional sign panels to each sign to meet the future demand. Victoria Bailey Karen Biorn Kent Clayton lui;i x •r;ner' u�nnrialH �.. Lawrence Craig David Dorn jon P. Gaffne4 r,i I �,ri^i.,riec�'�Cliorl UiSriC Rosa .Maria Gonzales Garret Kriske Chi! Mari-; ``, h4cran Additionally, the current MOU asks that we remove a business sign panel for a period of one month after it has been displayed for 11 months. The sign currently located at 52"d Avenue and Bermudas has only 4 of the 6 panels designated. If there is not wait list, would it be acceptable to leave these signs in place until there is a demand? I recently learned that the MOU specifies that the installation date be shown on all the panels in the lower right hand corner. This has never been done. We instructed the sign maker to include this information on all future panels. Is it the Commission's preference that we pull the current signs to add this information to existing sign panels? As regards the 2 double sided signs allowed for in the MOU, it appears that each side could reflect different businesses. Is this correct? We are in the process of ordering the fifth sign for installation and plan to make it double sided as allowed in our MOU. 785 20 0 Thank you for allowing the Chamber to manage this program. The businesses that have located in Old Town are great to work with and an asset to our community. I also appreciate your patience as try to understand the ground rules for this program and for your consideration of our requests. Cordially, Diane Glanz President/EO ' QS 21 ATTACHMENT 4 MINUTES PLANNING COMMISSION MEETING A regular meeting held at the La Quinta City Hall 78-495 Calle Tampico, La Quinta, CA January 13, 2004 7:00 P.M. CALL TO ORDER A. This meeting of the Planning Commission was called to order at 7:00 p.m. by Chairman Kirk who asked Commissioner Quill to lead the flag salute. B. Present: Commissioners Jacques Abels, Rick Daniels, Paul Quill, Robert Tyler, and Chairman Tom Kirk. C. Staff present: Community Development Director Jerry Herman, Assistant City Attorney Michael Houston, and Executive Secretary Betty Sawyer. II. PUBLIC COMMENT: None. Ill. CONFIRMATION OF THE AGENDA: Confirmed. IV. CONSENT ITEMS: 1. Chairman Kirk asked if there were any corrections to the Minutes of December 23, 2003. Commissioner Tyler asked that Page 4, Item 7 be corrected to read, "...the north side of Avenue 52... "; Page 5, Item 17 "...where a condition was added..."; Page 6, Item 19, "Commissioner Tyler expressed concerns about including the HOA letter..." There being no further corrections, it was moved and seconded by Commissioners Abels/Tyler to approve the minutes as corrected. 2. Department Report: None. Chairman Kirk asked the status of the Highway 1 1 1 Commercial Development Design Guidelines. Community Development Director Jerry Herman informed the Commission it will be on the Council agenda for February 3, 2004. V. PUBLIC HEARINGS: A. Zoning Code Amendment 2003-080; a request of the City for consideration of an Amendment to the La Quinta Municipal Code Section 9.160.080-Semi-Permanent Downtown Village Directional Signs to allow more sign panels and other minor amendments. 22 G:\WPDOCS\PC Minutes\1 -1 3-04WD.doc Planning Commission Minutes January 13, 2004 1. Chairman Kirk opened the public hearing and asked for the staff report. Community Development Director Jerry Herman presented the information contained in the staff report, a copy of which is on file in the Community Development Department. 2. Chairman Kirk asked if there were any questions of staff. Commissioner Tyler asked if a single panel could have a different company on each side. Staff noted it would be allowed. Commissioner Tyler asked that Item C be corrected to read, "However, a sign panel may be ....". He also suggested E.2. be corrected to read, "on no more than two lines". He also asked if alternate fonts may be permitted as previously approved by the City Council 3. Chairman.Kirk asked if there was any public comment. Ms. Diane Glanz, President/EO for the Chamber of Commerce, stated she would like to request the removal of the installation date. 4. Chairman Kirk asked if there were any questions of the applicant. Commissioner Tyler asked the amount of the demand for the panels. Ms. Glanz stated there is a large demand. They are in the process of acquiring bids for repair of all the signs, but wanted to wait till they had final approval of their request from Council. 5. Chairman Kirk asked if there was any objection to requiring them to keep a copy of the installation date in their offices. Ms. Glanz stated they currently have a list in their offices. 6. There being no other public comment, Chairman Kirk closed the public participation portion of the hearing and opened the project for Commission discussion. 7. Commissioner Tyler stated his concern that some fonts can be difficult to read and he would not like that to be duplicated here. Staff noted the Council has made the decision to allow alternative fonts. 8. Commissioner Quill asked who would decide the font style. Staff stated it would be the decision of the business. Chairman Kirk noted the Chamber may want to encourage the businesses to use p7 98 a font that would be easily read. 23 G:\WPDOCS\PC Minutes\ 1 - 1 3-04WD.doc 2 Planning Commission Minutes January 13, 2004 9. There being no further discussion, it was moved and seconded by Commissioners Abels/Quill to adopt Planning Commission Resolution 2004-001 recommending approval of Zoning Code Amendment 2003-080, as amended: a. A record of the installation date shall be kept at the Chamber offices and available for City review at any time and submitted annually to the City. b. The number of the lines of print shall be limited to two. C. Item C: insert the word sign "panel". d. Village Commercial Zoning. ROLL CALL: AYES: Commissioners Abels, Daniels, Quill, and Tyler, Chairman Kirk. NOES: None. ABSTAIN: None. ABSENT: None. VI. BUSINESS ITEMS: None. VII. CORRESPONDENCE AND WRITTEN MATERIAL: None. Vill. COMMISSIONER ITEMS: None. IX. ADJOURNMENT: There being no further business, it was moved and seconded by Commissioners Abels/Quill to adjourn this regular meeting of the Planning Commission to a regular meeting of the Planning Commission to be held on January 27, 2004, at 7:00 p.m. This meeting of the Planning Commission was adjourned at 7:16 p.m. Respectfully submitted, Betty J. Sawyer, Executive Secretary City of La Quinta, California 24 G:\WPDOCS\PC Minutes\1-13-04WD.doc 3