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2004 11 16 RDARedevelopment Agency Agendas are Available on the City's Web Page @ www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, November 16, 2004 - 2:00 P.M. Beginning Resolution No. RA 2004-017 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Osborne, Perkins, Sniff, and Chairperson Henderson PUBLIC COMMENT At this time, members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. Please watch the timing device on the podium. CLOSED SESSION NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session discussions during the dinner recess. In addition, persons identified as negotiating parties are not invited into the Closed Session meeting when the Agency is considering acquisition of real property. 1. CONFERENCE WITH AGENCY'S LEGAL COUNSEL REGARDING PENDING LITIGATION, RAMON GARCIA MARTINEZ, ET. AL., V. CITY OF LA QUINTA, ET. AL., UNITED STATES DISTRICT COURT, CENTRAL DISTRICT CASE NO. CV 04- 06373 DT (RZx), PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a). Redevelopment Agency Agenda 1 November 16, 2004 RECONVENE AT 3:00 P.M. PUBLIC COMMENT At this time members of the public may address the Agency Board on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Agency Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to the Agency beginning consideration of that item. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF NOVEMBER 2, 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 NOVEMBER 16, 2004. 2. TRANSMITTAL OF TREASURER'S REPORT DATED SEPTEMBER 30, 2004. 3. TRANSMITTAL OF REVENUE AND EXPENDITURES REPORT DATED SEPTEMBER 30, 2004. 4. ACCEPTANCE OF SilverRock RESORT GOLF CART BRIDGES, PROJECT NO. 2002- 07E AND APPROVAL OF CONTRACT CHANGE ORDER NO. 2. 5. APPROVAL OF THE SEPARATELY ISSUED LA QUINTA REDEVELOPMENT AGENCY ANNUAL AUDITED FINANCIAL STATEMENTS OF THE YEAR ENDING JUNE 30, 2004. 6. APPROVAL OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH OVERLAND PACIFIC AND CUTLER FOR RELOCATION SERVICES RELATED TO THE VISTA DUNES MOBILE HOME PARK. Redevelopment Agency Agenda 2 November 16, 2004 7. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH WILLIAM BOWER ASSOCIATES, INC./BOWER SECURITY FOR SECURITY SERVICES RELATED TO THE VISTA DUNES MOBILE HOME PARK. BUSINESS SESSION 1. CONSIDERATION OF AN APPROPRIATION FOR SilverRock RESORT AND ADOPTION OF A RESOLUTION OF THE REDEVELOPMENT AGENCY MAKING CERTAIN FINDINGS PURSUANT TO HEALTH & SAFETY CODE SECTION 33445. A. RESOLUTION ACTION 2. CONSIDERATION OF MONUMENT SIGNAGE FOR SilverRock RESORT. A. MINUTE ORDER ACTION. STUDY SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS 1. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 52-195 AVENIDA MENDOZA BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND MARGARITA SANCHEZ. A. MINUTE ORDER ACTION 2. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 52-965 AVENIDA CARRANZA BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND ANABEL SANCHEZ. A. MINUTE ORDER ACTION 3. JOINT PUBLIC HEARING BETWEEN THE CITY COUNCIL AND REDEVELOPMENT AGENCY TO APPROVE AN AGREEMENT TO SELL REAL PROPERTY LOCATED AT 51-805 AVENIDA CORTEZ BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND ROBERT AND DELILAH GAETA. A. MINUTE ORDER ACTION Redevelopment Agency Agenda 3' November 16, 2004 ADJOURNMENT Adjourn to a regularly scheduled meeting of the R (development Agency to be held on 1 9 Y � December 7, 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 Callo Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, i do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency 'meeting of Tuesday, November 16, 2004, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on Friday, November 12, 2004.. DATED: November 12, 2004 JUNE S. GREEK, CIVIC, City Clerk City of La Quinta, California Redevelopment Agency Agenda 4 November 16, 2004 AGENDA CATEGORY: BUSINESS SESSION COUNCIL/RDA MEETING DATE: NOVEMBER 16, 2004 / CONSENT CALENDAR ITEM TITLE: Demand Register Dated November 16, 2004 RECOMMENDATION: It is recommended the Redevelopment Agency Board: STUDY SESSION PUBLIC HEARING Receive and File the Demand Register Dated November 16, 2004 of which $402,733.90 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA 4 OF COUNCIL/RDA MEETING DATE: November 16, 2004 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Transmittal of Treasurer's Report dated September 30, 2004 CONSENT CALENDAR: C;L- STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA a, � �z 4 w OF T��9 COUNCIL/RDA MEETING DATE: November 16, 2004 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Transmittal of Revenue and Expenditure Report dated September 30, 2004 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: Transmittal of the September 30, 2004 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. Respectfully submitted, ohn M. Falcdner, Finance Director Approved for submission by: Thomas P: Genovese, Executive Director Attachments: 1. Revenue and Expenditures, September 30, 2004 ATTACHMENT 1 LA OUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO,1: LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOWIMOD BOND LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LORP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Deed Repayment Transfer In TOTAL LOWIMOD TAX DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interst - County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND - NON-TAXABLE Pooled Cash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Loan Proceeds Rental income Transfers In TOTAL CAPITAL IMPROVEMENT CAPITAL IMPROVEMENT FUND - TAXABLE Pooled Cash Allocated Interest Non Allocated Interest Litigation Settlement Revenue Bond proceeds Rental Income Transfers In TOTAL CAPITAL IMPROVEMENT REMAINING BUDGET RECEIVED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,246,300.00 58,935.80 6,187,364.20 20,800.00 0.00 20,800.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 341,000.00 58,437.00 282,563.00 150,000.00 0.00 150,000.00 165,000.00 0.00 165,000.00 0.00 26,973.69 (26,973.69) 0.00 83,314.92 (83,314.92) 0.00 253,246.50 (253,246.50) 0.00 0.00 0.00 6,923,100.00 480,907.91 6,442,192.09 24,985,400.00 235,743.20 24,749,656.80 66,000.00 (17.03) 66,017.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,478,347.00 511,141.52 1,967,205.48 27,529,747.00 746,867.69 26,782,879.31 0.00 0.00 0.00 0.00 119,121.41 (119,121.41) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 119,121.41 (119,121.41) 0.00 0.00 0.00 0.00 22,629.80 (22,629.80) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,629.80 (22,629.80) 2 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO.2: LOW/MODERATE BOND FUND: Allocated Interest Non Allocated Interest Bond proceeds (net) Transfer In TOTAL LOW/MOD BOND LOW/MODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest . Developer funding Vista Dunes MHP Rental Rev 2nd Trust Deed Repayment ERAF Shift - Interest Sale of Land Transfer In TOTAL LOWIMOD TAX 2004 LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transfer In TOTAL LOW/MOD BOND DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Developer Agreement Transfers In TOTAL CAPITAL IMPROVEMENT REMAINING BUDGET RECEIVED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,115,000.00 0.00 3,115,000.00 24,100.00 0.00 24,100.00 0.00 0.00 0.00 7,054,074.00 0.00 7,054,074.00 0.00 99,413.85 (99,413.85) 0.00 86,503.33 (86,503.33) 0.00 0.00 0.00 801,358.00 801,359.00 (1.00) 0.00 0.00 0.00 10,994,532.00 987,276.18 10,007,255.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 237,774.46 (237,774.46) 0.00 0.00 0.00 0.00 237,774.46 (237,774.46) 12, 459, 800.00 188, 912.65 12, 270, 887.35 0.00 0.00 0.00 0.00 (5.35) 5.35 0.00 0.00 0.00 4,099,819.00 254,904.01 3,844,914.99 16,559,619.00 443,811.31 16,115,807.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 LA QUINTA REDEVELOPMENT AGENCY EXPENDITURE SUMMARY PROJECT AREA NO, 1: LOW/MODERATE BOND FUND PERSONNEL SERVICES REIMBURSEMENT TO GEN FUND HOUSING PROJECTS TRANSFERS OUT TOTAL LOW/MOD BOND 07/01/2004 - 9130104 REMAINING BUDGET EXPENDITURES ENCUMBERED BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LOW/MODERATE TAX FUND: PERSONNEL 4,900.00 4,953.27 0.00 (53.27) SERVICES 253,157.00 38,444.05 0.00 214,712.95 BUILDING HORIZONS 250,000.00 0.00 0.00 250,000.00 LQ RENTAL PROGRAM 150,000.00 53,234.06 0.00 96,765.94 LQ HOUSING PROGRAM 3,118,240.00 0.00 0.00 3,118,240.00 LOWMOD VILLAGE APARTMENTS 400,000.00 0.00 0.00 400,000.00 LQRP - REHABILITATION 0.00 0.00 0.00 0.00 APT REHABILITATION 276,411.00 0.00 0.00 276,411.00 LQ HOUSING PROJECTS 500,000.00 0.00 0.00 500,000.00 REIMBURSEMENT TO GEN FUND 668,272.00 167,068.03 0.00 501,203.97 TRANSFERS OUT 2,478,347.00 511,141.52 0.00 1,967,205.48 TOTAL LOWIMOD TAX 8,099, 7.00 774,840. 3 0.00 7,3 4,486. 7 DEBT SERVICE FUND: SERVICES 496,585.00 16,937.99 0.00 479,647.01 BOND PRINCIPAL 2,395,000.00 2,395,000.00 0.00 0.00 BOND INTEREST 7,929,969.00 3,991,656.13 0.00 3,938,312.87 INTEREST CITY ADVANCE 952,764.00 238,191.00 0.00 714,573.00 PASS THROUGH PAYMENTS 11,903,406.00 359,462.25 0.00 11,543,943.75 ERAF SHIFT 3,000,000.00 0.00 0.00 3,000,000.00 TRANSFERS OUT 1,995,101.00 511,141.52 0.00 1,483,969.48 TOTAL DEBT SERVICE 28,672, 25.00 7,512,388.89 0.00 21,160,436.11 CAPITAL IMPROVEMENT FUND: PERSONNEL 4,900.00 4,408.12 0.00 491.88 SERVICES 116,393.00 25,355.62 0.00 91,037.38 LAND ACQUISITION 0.00 0.00 0.00 0.00 ASSESSMENT DISTRICT 0.00 0.00 0.00 0.00 ADVERTISING -ECONOMIC DEV 40,000.00 6,500.00 0.00 33,500.00 ECONOMIC DEVELOPMENT 50,000.00 3,935.00 0.00 46,065.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 CAPITAL - BUILDING 0.00 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 396,013.00 73,101.74 0.00 322,911.26 TRANSFERS OUT 37,354,752.00 3,861,803.24 0.00 33,492,948.76 TOTAL CAPITAL IMPROVEMENT 37,962,0 .00 3,975,103.72 0.00 33,986,954.28 CAPITAL IMPROVEMENT FUND/TAXABLE BOND BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT 5,666,764.00 1,133,415.44 0.00 4,533,348.56 TOTAL CAPITAL IMPROVEMENT 5,6N,764.00 1,13 415.44 0.00 4, .56 4 LA GUINTA REDEVELOPMENT AGENCY 07101/2004 - 9130104 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO.2. LOW/MODERATE BOND FUND 2nd TRUST DEEDS 0.00 0.00 0.00 0.00 LAND 0.00 0.00 0.00 0.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT 0.00 0.00 0.00 0.00 TOTAL LOWIMOD BOND 0.00 0.00 0.00 0.00 LOWIMODERATE TAX FUND: PERSONNEL 2,900.00 2,997.34 0.00 (97.34) SERVICES 192,088.00 51,699.56 0.00 140,388.44 2ND TRUST DEEDS 500,000.00 0.00 0.00 500,000.00 2ND TRUST DEEDS FROM CENTERPOINTE 2,520,000.00 0.00 0.00 2,520,000.00 48TH AND ADAMS - FROM CENTERPOINTE 1,423,203.00 7,058.20 0.00 1,416,144.80 WASH/MILES PROJECT 0.00 5,317.50 0.00 (5,317.50) VISTA DUNES MOBILE HOME PARK 0.00 75,146.12 0.00 (75,146.12) LOW MOD HOUSING PROJECT/47TH/ADAMS PROJ 776,239.00 44,351.00 0.00 731,888.00 48TH/ADAMS PLANNING 0.00 0.00 0.00 0.00 FORECLOSURE ACQUISITION 150,000.00 0.00 0.00 150,000.00 REIMBURSEMENT TO GEN FUND 333,272.00 83,317.97 0.00 249,954.03 TRANSFERS OUT 7,350,044.00 1,719,488.35 0.00 5,630,555.65 TOTAL LOWIMOD TAX 13,247, 46.00 1,989,376.04 0.00 11,2 ,369.96 2004 LOWIMODERATE BOND FUND 2nd TRUST DEEDS 0.00 0.00 0.00 0.00 LAND 0.00 0.00 0.00 0.00 BOND ISSUANCE COSTS 0.00 0.00 0.00 0.00 TRANSFERS OUT 1,800,965.00 14,969.64 0.00 1,785,995.36 TOTAL LOWIMOD BOND 1,800,965.00 14,969.64 0.00 1,785,995.36 DEBT SERVICE FUND: SERVICES 179,013.00 3,025.00 0.00 175,988.00 BOND PRINCIPAL 95,000.00 95,000.00 0.00 0.00 BOND INTEREST 323,264.00 162,617.50 0.00 160,646.50 INTEREST CITY ADVANCE 1,053,580.00 364,893.00 0.00 688,687.00 INTEREST - ERAF L/MOD LOAN 0.00 0.00 0.00 0.00 PASS THROUGH PAYMENTS 10,605,577.00 0.00 0.00 10,605,577.00 TRANSFERS OUT 994,948.00 254,904.01 0.00 740,043.99 TOTAL DEBT SERVICE 13,251,38 .00 88 ,439.51 0.00 1 ,370,942.49 CAPITAL IMPROVEMENT FUND: PERSONNEL 2,900.00 2,996.52 0.00 (96.52) SERVICES 117,820.00 16,004.69 0.00 101,815.31 ADVERTISING -ECONOMIC DEV 250.00 0.00 0.00 250.00 ECONOMIC DEVELOPMENT ACTIVITY 40,000.00 3,500.00 0.00 36,500.00 REIMBURSEMENT TO GEN FUND 41,443.00 10,361.26 0.00 31,081.74 TRANSFERS OUT 1,634.00 91.48 0.00 1,542.52 TOTAL CAPITAL IMPROVEMENT 204,047.00 32,953.95 0.00 171,093.05 5 COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: Acceptance of SilverRock Resort Golf Cart Bridges, Project No. 2002-07E, and Approval of Contract Change Order No. 2 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept SilverRock Resort Golf Cart Bridges, Project No. 2002-07E as complete; approve Contract Change Order No. 2; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and authorize staff to release retention in the amount of $23,099.06, 35 days after the Notice of Completion is recorded. FISCAL IMPLICATIONS: The following is a budget summary: Original Contract Amount Contract Change Order No. 1 Pending Contract Change Order No. 2 Revised Total Contract Amount paid to date $194,000.00 $11,990.62 $25,000.00 $230,990.62 ($185,391.00) Remaining Fiscal Commitment $45,599.62 Adequate funding is available to pay the contractor's remaining billing of $45,599.62, which includes retention in the amount of $23,099.06 and Contract Change Order No. 2. BACKGROUND AND OVERVIEW: This project consisted of constructing three (3) golf cart bridges across the CVWD All American Canal, which bisects the project site. Two of the bridges are rated at five (5) tons to carry normal golf cart traffic and one bridge was designed to a ten (10) ton capacity for heavier maintenance equipment and any emergency vehicles that may need to cross the canal. S:\CityMgr\STAFF REPORTS ONLY\11-16-04\C 6 Project 2002-07E .doc The Agency awarded a contract on June 1, 2004 for $194,000 to DenBoer Engineering & Construction, Inc. to construct the SilverRock Resort Golf Cart Bridges, Project No. 2002-07E. Notice to Proceed was issued on July 26, 2004, stipulating a 96 (ninety-six) consecutive calendar day contract completion time. In consideration of the contract start date, all contract work was to be completed on or before October 29, . 2004. Contract Change Order No. 1 provided compensation in the amount of $1 1,990.62 to the contractor for additional costs for bridge fabrication and installation per CVWD's relocation request. Contract Change Order No. 2 (Attachment 1) provides an early completion incentive to the contractor in the amount of $25,000.00. Staff has acknowledged the project was substantially complete on September 17, 2004, which is 43 consecutive calendar days ahead of the contract completion date. Contract project specifications Section 1500- 3.2 allows for a $2,500 per working day Early Completion Incentive with a compensable maximum not -to -exceed $25,000. Staff has reviewed improvements installed in the field and confirmed the project is in compliance with the contract terms, conditions, plans and specifications. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency include: 1. Accept SilverRock Resort Golf Cart Bridges, Project No. 2002-07E as complete; approve Contract Change Order No. 2; authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and authorize staff to release retention in the amount of $23,099.06, 35 days after the Notice of Completion is recorded; or 2. Do not accept SilverRock Resort Golf Cart Bridges, Project No. 2002-07E as complete; do not approve Contract.Change Order No. 2; do not authorize the City Clerk to file a Notice of Completion with the Office of the County Recorder; and do not authorize staff to release retention in the amount of $23,099.06, 35 days after the Notice of Completion is recorded. 3. Provide staff with alternative direction. 2 S:\CityMgr\STAFF REPORTS ONLY\1 1-1 6-04\C 6 Project 2002-07E .doc Respectfully submitted, my R oth. Jon son, Public Works Director/City Engineer Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Contract Change Order No. 2 3 S:\CityMgr\STAFF REPORTS ONLY\C 6 Project 2002-07E .doc 1-76e-777-796e to:i ATT4CLliMENT 1 Olt Sheaf i of 1 CxxTw m C=t P . —,m—s— Corr AC r CRANM OMM NO. � Pres■e�t AlmOmOttOwtOWCONhWASt� OWAN youmbrftd�tocledlfm0ftlraitderarIOwWWOr Dibs�b%�riK dr�ei�rdw+aicM bwh dedb *o phmmd ep- I5pmllmwhrdftCoobwx t,folm ado, i be *Wdaaw c*fty c I mudoungs. V@mmlamWWwKmdq*Mvi*viaioeetof& a'*W Gores ♦�r�r,�►�r��s,ties+art+t�fafa#+�s,r+r��+��s�t,�+►�e�rrr#��s�r�r��,��►sw�r ��+,�M► ft�*lr�fi***� i�it � A#ii�lR alr�## l�r iiifi* #ii�riliifi�lt#*� 16li4R ***lrta m **ll * ale GIW& MANNE—dowl" r pofftrl cam"a7 DV� d'W damp o1Mw dw #m �f �1 �A !E d� � �d t� r�e.�iet..r ram► �e.dw at r&w . Zrr�+a�wtM&jW ee PWft tft dM lw W29MI ff,rrr.*.*.�r.�oe�re+r�t,�r�,e�+e*w,tir��s�.i.�,��+�.�.►fis.�,�►��+�+.►�wrw��r�►.�►�s.��e IL '�"� ► � ■et �rrr�r p•�aprrMettr r drotVows ,ice trHed d di�e+ebo . 4 09/22/2004 10:46 7603273211 DENBOER ENGINEERING PAGE 02 DenBoex En 'neei-in and Construction�� OVER REQUEST � � No. 00002 4575 E. Camino Paroceia Phone: 7W327-2200 Palm S s Cal 92264 Fax: 760-327-3211 TITLE: Incentive Payment PRt).i M Silver Rock Resort Golf Cwt Bridges TO: Attu: Tim Jona sson City of La Quinta 78-495 Calle Tampico P.O. Box 1504 La Quinta,, CA 9225a Phone: 760-777-7000 Fax: 760-777-7155 DATE: 9/22/2004 JOB: 232 CONtACT NO:232 IRE; To: From: Number: )DESCRIPTION OF PROPOSAL Please issue a ch&W order to make payment for the early completion eve as deamInd in the specificfflicros. Item Ieeription 3todw Quantity Units Limit Prig Tax Raft Tax Amonat Net Amount 00001 Fey Completion I nb" 10.000 &ys 52,5m.00 0.00% S0.00 $25,000.00 APPR By: Date: e<pe&dan Unit Cost: Unit Tax; Lamp Sam: ..amp Tax: Total: By: Date: $25,000.00 $0.00 $0.00 Tim Jonuson .4000-00 5 Iry 4 64& QfdArla COUNCIIJRDA MEETING DATE: November 16, 2004 ITEM TITLE: Approval of the Separately Issued La Quinta Redevelopment Agency Annual Audited Financial Statements for the Year Ended June 30, 2004 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2004 (Attachment 1). FISCAL IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the end of every fiscal year, the Redevelopment Agency prepares an audited financial report. FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency include: 1. Approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2004; or 2. Do not approve, receive and file the Annual Audited Financial Statement for the year ended June 30, 2004; or 3. Provide staff with alternative direction. Respectfully submitted, YhnFalcon r, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Annual Audited Financial Statement for the year ended June 30, 2004 LA QUINTA REDEVELOPMENT AGENCY Financial Statements and Supplemental Data Year ended June 30, 2004 (with Independent Auditors' Report Thereon) LA QUINTA REDEVELOPMENT AGENCY Financial Statements and Supplemental Data Year ended June 30, 2004 TABLE OF CONTENTS Page Independent Auditors' Report Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Governmental Funds: Balance Sheet Reconciliation of the Balance Sheets of Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances 10 Reconciliation of the Statement of Revenues, Expenditures and Changes 12 Notes to the Basic Financial Statements 13 Required Supplementary Information: Notes to Required Supplementary Information 36 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual: Low/Moderate Income Housing Fund — PA No. 1 37 Low/Moderate Income Housing Fund — PA No. 2 38 Supplementary Information: Non -Major Governmental Funds Balance Sheet 40 Statement of Revenues, Expenditures and Changes in Fund Balances 41 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 42 CERTIFIED PUBLIC ACCOUNTANTS CONRAD SOCIATES, L.L.P Board of Directors La Quinta Redevelopment Agency La Quinta, California INDEPENDENT AUDITORS' REPORT 2301, DUPONT DRIVE, SUITE 200 IRVINE, CALIFORNIA 92612 (949)474-2020 Fax (949) 263-5520 We have audited the accompanying financial statements of the governmental activities and each major fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta, California as of and for the year ended June 30, 2004, which collectively comprise the Agency's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the management of the La Quinta Redevelopment Agency. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the La Quinta Redevelopment Agency at June 30, 2004, and the results of its operations for the year then ended, in. conformity with accounting principles generally accepted in the United States of America. The La Quinta Redevelopment Agency has not presented Management's Discussion and Analysis that the Governmental Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The information identified in the accompanying table of contents as required supplementary information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION Board of Directors La Quinta Redevelopment Agency Page Two Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The combining fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated August 20, 2004 on our consideration of the Agency's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. August 20, 2004 (This page intentionally left blank) LA QUINTA REDEVELOPMENT AGENCY Statement of Net Assets June 30, 2004 Assets: Cash and investments (note 2) Accounts receivable Interest receivable Notes receivable (note 3) Deposits Due from other governments Advances to the City of La Quinta (note 4) Restricted assets: Cash and investments with fiscal agent (note 2) Capital assets (note 5): Land Other capital assets, net Total assets Liabilities: Accounts payable Interest payable Deposits payable Due to the City of La Quinta Noncurrent liabilities (notes 7 to 12): Due within one year Due in more than one year Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for: Low moderate housing Capital projects Unrestricted ' Total net assets Governmental Activities 2004 2003 $ 44,248,109 35,991,319 141,113 139,347 166,135 - 12,741, 527 12,613,565 - 185,000 530,820 551,789 5,336,158 4,921,720 95,419,807 30,019,213 68,488,416 51,450,306 560,000 616,000 227,632,085 136,488, 259 72,677 2,756,408 46,499 2,746,630 2,368,690 2,767,256 47,144 4,051,114 3,196,877 270,025, 317 172,977,863 279,698,645 56,551,121 56,275,681 (164,893,362) 181,357,830 20,592,059 44,167,562 (109,629,192) $ (52,066,560) (44,869,571) See accompanying notes to the basic financial statements. 4 Governmental activities: Planning and development Low and moderate housing Interest expense Total governmental activities LA QUINTA REDEVELOPMENT AGENCY Statement of Activities Year ended June 30, 2004 Program Revenues Operating Capital Charges for Contributions Contributions Governmental Activities Expenses Services and Grants and Grants 2004 2003 $ 3,379,030 369,709 (3,009,321) (3,408,173) 18,477,569 647,037 (17,830,532) (8,988,127) 12,279,953 - (12,279,953) (9,622,415) General revenues: Taxes: Property taxes Investment income Rental income Gain (loss) on sale of capital assets Miscellaneous revenues Total general revenues Change in net assets Net assets (deficit) at beginning of year Net assets (deficit) at end of year 1,016,746 (33,119,806) (22,018,715) 23,668,885 21,191,832 893,828 666,954 437,972 415,555 (56,763) - 978,895 336,541 25,922,817 22,610,782 (7,196,989) 592,067 (44,869,571) (45,461,638) $ (52,066,560) (44,869,571) See accompanying notes to the basic financial statements. 5 LA QUINTA REDEVELOPMENT AGENCY Governmental Funds - Balance Sheet Assets Cash and investments Cash and investments with fiscal agent Accounts receivable Interest receivable Notes receivable Deposits Due from other governments Advances to the City of La Quinta Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deferred revenue Deposits payable Due to the City of La Quinta Advances from the City of La Quinta Total liabilities Fund balances: Reserved for: Bond projects Debt service Notes receivable Deposits Advances to the City of La Quinta Unreserved, reported in: Special revenue funds Debt service funds Capital projects funds Total fund balances (deficit) Total liabilities and fund balances June 30, 2004 Special Revenue Funds Low/Moderate Low/Moderate Income Housing - Income Housing - PA No. 1 PA No. 2 $ 1,588,670 5,645,763 71,713 9,500 7,370 22,253 3,241,527 9,500,000 58,936 47,228 $ 4268,216 15,223,744 $ 21,302 21,651 1,118,102 9,500,000 18,664 - 1,158,068 9,521,651 2,123,425 1,686,723 5,702,093 3,810,148 5,702,093 $ 4,968,216 15,223,744 Debt Service Funds Redevelopment Redevelopment Agency - Agency - PA No. 1 PA No. 2 16,134,876 5,021,687 309 11 53,535 20,892 235,743 188,913 16,424,463 5,231,503 1,109 12,335,283 16,335,900 12, 33 6,392 16,335, 800 4,088,071 (11,104,297) 4,088,071 11,104 297) 16,424,463 5,231,503 See accompanying notes to the basic financial statements. 2 Capital Projects Funds Redevelopment 2004 Other Agency - Low/Mod Governmental PA No. 1 Bond Funds 14,011,979 29,272,059 60,403 4,075,463 47,419,904 16,531 16.531 29,272,059 4,075,463 14,055,851 47,403,373 47,419,904 57,656,982 8,490,446 - 60,900 1,682 1,260,695 57,656,982 11,658,857 57,656,982 12,084 27,835 2,746,630 0 Totals 44,248,109 35,991,319 95,419,807 30,019,213 141,113 139,347 166,135 - 12,741,527 12,613,565 185,000 530,820 551,789 5,336,158 4,921,720 158,583,669 84,421,953 72,677 2,368,690 10,618,102 10,495,979 46,499 47,144 2,746,630 - 28,671,083 21,081,322 2,786,549 42,154,991 33,993,135 8,490,446 1,260,695 (878,833) 57,656,982 8,872,308 57,656, 982 11,658,857 7 95,419,487 30,016,934 4,088,071 2,273,059 2,123,425 2,117,586 - 185,000 5,336,158 3,811,874 7,388,816 7,868,117 (11,104,297) (6,182,506) 13,177,018 10,338,754 116,428,678 50,428,818 158,583,669 84,421,953 LA QUINTA REDEVELOPMENT AGENCY Governmental Funds Reconcilation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2004 Fund balances of governmental funds $ 116,428,678 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not beenincluded as financial resources in governmental fund activity. Capital assets 69,288,416 Accumulated depreciation (240,000) Long term debt has not been included in the governmental fund activity. (245,405,348) Accrued interest payable for the current portion of interest due on Long term debt has not been reported in the governmental funds. (2,756,408) Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. 10,618,102 Net assets of governmental activities $ (52,066,560) See accompanying notes to the basic financial statements. (This page intentionally left blank) LA QUINTA REDEVELOPMENT AGENCY Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2004 Revenues: Taxes Developer fees Investment income Rental income Miscellaneous revenues Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest and fiscal charges Payments under pass - through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Issuance of tax allocation bonds Proceeds from loans Proceeds from sale of capital assets Payment to bond escrow Transfers in (note 14) Transfers out (note 14) Transfers from (to) the City of La Quinta Total other financing sources (uses) Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year Special Revenue Funds Low/Moderate Low/Moderate Income Housing - Income Housing - PANo. l PANo. 2 $ 5,991,739 20,275 367,598 856,474 7,236,086 3,591,028 3,031,668 622,305 109,504 63,580 122,421 3,949,478 562,895 Debt Service Funds Redevelopment Redevelopment Agency - Agency - PA No. 1 PA No. 2 23,966,954 201,721 12,126,671 75,625 24,168,675 12,202,296 377,920 2,920,708 9,018,568 168,983 276,169 1,536,694 - - 11,767,922 9,680,225 3,591,028 562,895 24,085,118 11,662,071 3,645,058 3,386,583 83,557 540,225 - 16,961,867 4,584,240 108,570 - - - (16,961,867) (4,584,240) 1,731,455 337,984 (1,731,455) (337,984) - (5,800,000) (2,216,625) (3,437,986) - (3,948,080) (3,667,400) 1,731,455 (5,462,016) (303,022) (280,817) 1,815,012 (4,921,791) 4,113,170 5,982,910 2,273,059 (6,182,506) $ 3,810,148 5,702,093 4,098,071 (112104,297) See accompanying notes to the basic financial statements. 10 Capital Projects Funds Redevelopment 2004 Other Agency - Low/Mod Governmental Totals PA No. 1 Bond Funds 2004 2003 45,117,032 38,753,826 - - 642,580 - 635,823 2,781 120,417 1,145,871 1,173,037 6,794 - - 437,972 415,555 - - - 978,895 336,541 642,617 2,781 120,417 48,322,350 40,678,959 1,832,408 - 174,152 6,707,386 7,112,115 - 3,196,977 2,537,918 949,968 11,505,230 8,959,140 - - 21,448,147 17,561,994 1,832,408 - 1,124,120 42,857,640 36,171,167 (1,189,791) 2,781 (1,003,703) 5,464,710 4,507,792 - 26,400,000 26,400,000 - 66,323,236 - 87,869,343 - 109,570 (21,546,107) - 5,800,000 7,869,439 9,117,678 - (7,869,439) (9,177,678) 7,502,631 (8,669,035 (25,475,641) (32,296,656) (5,894,492) 7,502,631 57,654,201 6,724,359 60,535,150 (5,884,492) 6,312,840 57,656,982 5,720,656 65,999,860 (1,376,700) 41,090,533 - 3,151,652 50,428,818 51,805,518 47,4032373 57,656,982 8,572,308 116,428,678 50,428,818 11 LA QUINTA REDEVELOPMENT AGENCY Reconcilation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2004 Net changes in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities is different because: $ 65,999,860 Governmental funds report capital outlay as expenditures. However, in the statement of activities, th cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the. amount by which capital outlays exceeded depreciation in the current period. 16,982,110 Proceeds from the issuance of debt is reported as other financing sources in the governmental funds. The issuance of debt increases liabilities in the statement of net assets, but does not result in an increase in the statement of activities. (114,269,343) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal repayment Payment to bond escrow agent Bond issuance costs are recorded as an expenditure in the governmental funds while full accrual requires the amortization of these costs over the life of the debt. The statement of net assets includes accrued interest on long term debt. Revenues that are measurable but not available. Amounts are not recorded as revenues under the modified accrual basis of accounting. Changes in net assets of governmental activities See accompanying notes to the basic financial statements. 3,196,877 21,546,107 (785,571) iRM 122,123 $ (7,196,989) 12 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements Year ended June 30, 2004 (1) Summary of Significant Accounting Policies The following is a summary of the significant accounting policies of the La Quinta Redevelopment Agency: (a) Organization and Tax Increment Financing Redevelopment Goals and Obiectives The general objective of the Redevelopment Plan adopted by the Agency is to encourage investment in the Redevelopment Project Areas by the private sector. The Redevelopment Plan provides for the demolition of buildings and improvements, the relocation of any displaced occupants, and.the construction of streets, parking facilities, utilities and other public improvements. The Redevelopment Plan also includes the ability to redevelop land by private enterprise or public agencies, the rehabilitation of structures, the rehabilitation or construction of single family and low and moderate income housing, and participation by owners and tenants of properties in the Redevelopment Project. Redevelopment Project Areas The Agency has established two redevelopment project areas. On November 29, 1983 the City Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 1. On May 16, 1989 the City Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No.2. These plans provide for the elimination of blight and deterioration that was found to exist in the project areas. Tax Increment Financing The Law provides a means for financing redevelopment projects based upon an allocation of taxes collected within a redevelopment project. The assessed valuation of a redevelopment project last equalized prior to adoption of a redevelopment plan or amendment to such redevelopment plan, or "base roll', is established and, except for any period during which the assessed valuation drops below the base year level, the taxing bodies, thereafter, receive the taxes produced by the levy of the current tax rate upon the base roll. Taxes collected upon any increase in assessed valuation over the base roll ("tax increment') are paid and may be pledged by a redevelopment agency to the repayment of any indebtedness incurred in financing or refinancing a redevelopment project. Redevelopment agencies themselves have no authority to levy property taxes. 13 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus The basic financial statements of the Agency are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its discreetly presented component units. The La Quinta Redevelopment Agency has no business - .type activities or discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the Agency. The accompanying government -wide financial statements for the Agency present negative net assets because the primary activity of the Agency is to issue debt to construct infrastructure that will be owned and maintained by the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 33. Program revenues include charges for services and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. 14 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Amounts paid to acquire capital assets are capitalized as assets in the government - wide financial statements, rather than reported as an expenditure. Proceeds of long- term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Fund Financial Statements The underlying accounting system of the Agency is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial .statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds primarily represent assets held by the Agency in a custodial capacity for other individuals or organizations. The Agency has no nonmajor funds, enterprise funds, or fiduciary funds. Governmental Funds In the fund financial statements, governmental funds and agency funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Agency uses a sixty day availability period. 15 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non -exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government - mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non -current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When, both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (c) Major Funds The following funds are presented as major funds in the accompanying basic financial statements: — '1'o account for the required 2U"/o set aside of property tax' increments that is legally restricted for increasing or improving housing for low and moderate income households. Debt Service Funds, P.A. No. 1 and No. 2 — To account for the accumulation of resources for the payment of debt service for bond principal, interest and trustee fees. Capital Projects Funds, P.A. No. 1 — To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. 2004 Low and Moderate Income Housing Fund — To account for the bond proceeds, interest and other funding that will be used for development, planning, construction, and land acquisition for low and moderate income housing projects. (d) Cash and Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. (e) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed fixed assets are valued at their estimated fair market value at the date of the contribution. Generally, fixed asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Buildings are depreciated over a useful life of thirty years. 17 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements .(Continued) (1) Summary of Significant Accounting Policies, (Continued) Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. (f) Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Agency's financial position and operations. However; comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Certain minor reclassifications of prior year data have been made in order to enhance their comparability with current year figures. (2) Cash and Investments Cash and investments held by the Agency at June 30, 2004 consisted of the following: Equity in State of California Local Agency Investment Fund $ 6,524,262 Equity in City cash and investment pool 37,723,847 Total cash and investments held by the Agency $44,248,109 Cash and investments held by fiscal agent at June 30, 2004 consisted of the following: U.S. Treasury Bills $89,348,970 Mutual funds - First American Treasury Obligations 6,070,837 Total cash and investments held by fiscal agent $95.419.807 The Agency is authorized by the City's investment policy to invest in the following types of investments: Investment Type U.S. treasuries and GNMA FHLB, FFCB, FLB, FNMA, FHLMC Student Loan Marketing Association Government Pools U.S., government and agency securities Commercial Paper Mutual Funds Certificates of Deposit Restriction None $5 million per issuer $3 million $40 million and 20% of portfolio 100% of portfolio $3 million per issuer, and 90 days 20% 60% 18 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments of cities in securities are classified in three categories to give an indication of the level of custodial risk assumed by the entity. Category 1 - includes investments that are insured or registered or for which the securities are held by the Agency or the Agency's custodial agent (which must be a different institution other than the party through which the Agency purchased the securities) in the Agency's name. Investments held "in the Agency's name" include securities held in a separate custodial or fiduciary account and identified as owned by the Agency in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the Agency's name by the dealer's agent (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the Agency.) Category 3 - includes uninsured and unregistered investments for which the securities are held by the dealer's trust department or agent, but not in the Agency's name. Category 3 also includes all securities held by the broker -dealer agent of the Agency (the parry that purchased the securities for the Agency) regardless of whether or not the securities are being held in the Agency's name. U.S. Treasury Bills Carrying Category Amount 1 2 3 _ 89,348,970 89,348,970 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund Equity in City cash and investment pool Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 6,524,262 37,723,847 6,070,837 �139.667.916 W, LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset -backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, and corporations. Outstanding (3) Notes Receivable Balance at June 30, 2004 In September 1994, the Agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, 2029. $ 3,153,490 In December 2000, the Agency entered into an agreement with LINC Housing to receive $9,500,000 as a reimbursement for Agency costs incurred for the construction of infrastructure related to the development of senior apartments. Payments are due to the Agency in the amount of annual positive cash flow generated by the rental of the units. All unpaid principal and interest on the note are due fifty-five years after the completion of the project. Interest on the note accrues at 3% per annum. 9,500,000 Other notes receivable 88,037 Total notes receivable 12.741.527 O Advances to the City of La Quinta The Redevelopment Agency advanced funds to the City of La Quinta to help the City meet the cost of developing the public -owned improvements to the La Quinta Community. Park and Civic Center Campus. There is no stipulated repayment date established ,for the Agency advances. Interest accrues at the earning rate of City's Investment Pool funds, and shall be adjusted quarterly. At June 30, 2004, outstanding Project Area No. 1 advances were $4,075,463 and Project Area No. 2 advances were $1,260,695: FM LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (5) Capital Assets Capital asset activity for the year ended June 30, 2004 was as follows: Balances at Balances at June 30, 2003 Additions Deletions June 30, 2004 Buildings $ 840,000 (40,000 800,000 Total cost of depreciable assets 840,000 - (40,000) 800,000 Less accumulated depreciation for: Buildings (224,000) (26,667) 10,667 (240,000 ) Net depreciable assets 616,000 (26,667) (29,333) 560,000 Capital assets not depreciated: Land 51,450,306 17,174,110 13( 6,000) 68,488,416 Capital assets, net $52.066.306 7 11 . 47.443 16( 5.333) 048 416 (6) Property Taxes Under California law, property taxes, are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary source of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. 21 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (6) Property Taxes, (Continued) (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. (7) Long -Term Liabilities Long-term liability activity for the year ended June 30, 2004 was as follows: Amounts Balance at Balance at due within June 30, 2003 Additions Deletions June 30, 2004 one year Loans payable to City of La Quinta Financing Authority $ - Project Area No. 1: 1994 Tax Allocation Bonds 18,410,000 1995 Housing Tax Allocation Bonds 16,026,850 1998 Tax Allocation Bonds 15,760,000 2001 Tax Allocation Bonds 46,189,590 2002 Tax Allocation Bonds 38,443,574 2003 Tax Allocation Bonds - Pass -through• agreement payable: Coachella Valley Unified School District 7,365,254 Advances from City of La Quinta 11,503,322 Loans payable to City of La Quinta Financing Authority - Project Area No. 2: 1995 Housing Tax Allocation Bonds 1998 Tax Allocation Bonds Due to County of Riverside Advances from City of La Quinta Loans payable to City of La Quinta Financing.Authority Total long-term liabilities 4,333,150 6,415,000 2,150,000 9,578,000 66,323,236 - 66,323,236 554,773 (1,325,000) 17,085,000 - (16,026,850) - - 15,760,000 64,658 - 46,254,248 53,670 (565,000) 37,932,244 25,476,136 - 25,476,136 - (711,877) 6,653,377 958,335 (126,374) 12,335,283 16,961,867 - 16,961,867 (4,333,150) - (90,000) 6,325,000 - (100,000) 2,050,000 6,757,800 - 16,335,800 1,430,000 575,000 390,000 726,114 141,881 95,000 100,000 4,584.240 4,584,240 38,346 17 16 74 740 121 179 942 (2�.278.251) 27 04. 76 431 4 051.114 22 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) 81 Tax Allocation Bonds Tax Allocation Refunding Bonds, Series 1994 Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds ranges from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. There are certain limitations regarding the issuance of panty debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is $17,085,000. Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 1 Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues. There are certain limitations regarding the issuance of parity debt as further described in the official statement. Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter, through September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is $15,760,000. Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. 23 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) 81 Tax Allocation Bonds. (Continued Interest rates on the bonds range from 3.75% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues of Project Area No. 2. Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal. amount thereof plus accrued interest. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is $6,325,000. Tax Allocation Bonds, Series 2001— Project Area No. 1 On August 15, 2001, the Agency issued tax allocation bonds in the amount of $48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and issuance costs of $1,517,325. The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature on September 1, 2021. and $30,720,000 of term bonds that accrue interest at 5.18% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is $46,254,248 ($48,000,000 net of unamortized discount and issuance costs of $1,810,410). Tax Allocation Bonds, Series 2002 — Project Area No. 1 On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of $1,250,096. At June 30, 2003, the unexpended balance of bond proceeds is $1,014,486. The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. Term bonds accrue interest at 5.00% and ,5.125% and mature on September 1, 2022 and September 1, 2023. The interest and principal on the bonds are payable from pledged tax increment revenues. iz! LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is $37,932,244 ($39,435,000 net of unamortized discount and issuance costs of $1,502,756). Tax Allocation Bonds, Series 2003 — Project Area No. 1 On September 1, 2003, the Agency issued tax allocation bonds' in the amount of $26,400,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of $277,200 issuance costs of $629,191. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2013 through September 1, 2032 are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each September 1 thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2004 is $25,476,136 ($26,400,000 net of unamortized discount and issuance costs of $923,864). 25 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) 8) Tax Allocation Bonds, (Continued) The minimum annual requirements (including sinking fund requirements) to amortize Project Area No. 1 tax allocation bonds as of June 30, 2004 are as follows: Project Area No.l 1994 Tax Allocation Bonds 1998 Tax Allocation Bonds 2001 Tax Allocation Bonds 2002 Tax Allocation Bonds 2003 Tax Allocation Bonds June 30 Principal Interest Principal Interest Principal Interest Pdncioal Interest Pn_ pupal interest 2005 S 1,430.000 1,192,140 - 919,520 - 2,430,720 575,000 1,895,131 390,000 1,602,458 2006 1,530,000 1,087,700 - 819,520 - 2,430,720 585,000 3,882,361 405,000 1,585,604 2007 1,620,000 973,455 - 819,520 - 2,430,720 600,000 1,867,091 420,000 1,568,114 2008 1,740,000 850,815 - 819,520 - 2,430,720 615,000 1,849,617 440,000 1,549,882 2009 1,865,000 719,233 - 819,520 - 2,430,720 635,000 1,829,914 460,000 1,530,802 2010 2,000,000 578,160 - 819,520 - ' '2,430,720 660,000 1,807,557 475,000 1,508,106 2011 2,145,DOD 426,869 919,520 - 2,430,720 680,000 1,782,926 505,000 1,491,401 2012 2,305,000 264,443 - 819,520 - 2,430,720 705,000 1,736,430 530,000 1,453,198 2013 2,470,000 90,155 819,520 2,430,720 735,000 1,727,991 560,000 1,423,496 2014 - - 655,000 902,490 1,565,000 2,391,595 705,000 1,695,656 590,000 1,392,158 2015 - - 690,000 767,520 1,645,000 2,311,345 735,000 1,659,656 620,000 1,356,736 2016 - - 725,000 730,730 1,730.000 2226,970 770,000 1.622,031 660,000 1,316,800 2017 - - 765,000 691,990 1,815,000 2,138,345 810,000 1,592,531 700,000 1,274,368 2018 - - 800,000 651,300 1,905,000 2,045,345 855,000 1,540,906 745,000 1,229,284 2019 - - 845,000 608,530 2,000,000 1,947,720 895,000 1,497,156 790,000 1,181,392 2020 - - 890,000 563,420 2,100,000 1,845,220 940,000 1,451,291 840,000 1,130,536 2021 - - - 935,000 515,970 2,205,000 1,737,595 985,000 1,403,156 895,000 1,076,404 2022 - - 985,000 466,050 2,315,OOD 1,624,595 1,035,000 1.352,656 950,000 1,018,840 2023 - - 1,035,OD0 413.530 2,430,000 1,504,755 1,090,000 1,299,531 1,010,000 957,688 2024 - - 1,090,000 358,280 2,555,000 1,377,637 1,140,000 1,243,069 1,075,000 892,636 2025 - - 1,145,000 300,170 2,685,000 1,244,018 1,200,000 1,183,106 1,140,000 822,389 2026 - - 1,205,000 239,070 2,820,000 1,103,640 1.265,000 1,119,941 1,215,000 746,557 2027 - 1,265,000 174,850 2,965,000 956,123 1,330,000 1,053,444 1290,000 665,896 2028 - - 1,330,000 107,380 3,120,000 800,955 1,395,000 983,615 1,375,000 580,083 2029 - - 1,400,000 36,400 3,275,000 637,892 1,470,000 910,200 1,465,000 488,635 2030 - - - - 3,445,000 466,523 3,015,000 795,272 1,555,000 391,391 2031 - - - - 3,620,000 286,365 3,170,000 636,781 1,655,000 298,029 2032 - - - 3,905,000 97.027 5,335,000 470,091 1,765.000 177,905 2033 - - - - 7,505,000 192,316 1,880,000 60,536 2034 ;L 085.000 6.172.969 15.760.tl00 ld Q3360 4 000 48620133 39.0j.000 40.091.403 26.400.000 30.75L323 26 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) The minimum annual requirements (including sinking fund requirements) to amortize Project Area No. 2 tax allocation bonds as of June 30, 2004 are as follows: Project Area No. 2 1998 Tax Allocation Bonds June 30 Principal Interest 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 95,000 100,000 105,000 110,000 115,000 120,000 125,000 130,000 140,000 145,000 150,000 160,000 170,000 175,000 185,000 195,000 205,000 215,000 230,000 240,000 255,000 265,000 $6.325.000 323,264 319,168 314,785 310,135 305,194 299,550 293,272 286,737 279,819 272,516 264,956 257,013 248,556 239,716 230,491 220,631 210,131 199,106 187,425 175,087 162,094 148,444 134,138 119,044 103,163 86,494 68,906 50,400 30,975 10,500 6,151200 27 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (9) Loans Payable to the City of La Quinta Financing Authority On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount of $90,000,000 to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and the La Quinta Redevelopment Project Area No. 2 and to advance refund the Agency's Redevelopment Project Areas No. I and 2, 1995 Housing Tax Allocation Bonds. The La Quinta Financing Authority loaned $87,869,343 of the proceeds of the bonds to the La Quinta Redevelopment Agency. Interest is payable semi-annually on March 1 and September 1 of each year, commencing September 1; 2004. Interest payments range from 3% to 5.25% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September I, 2024, September 1, 2029 and September 1, 2034 are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2017, September 1, 2025, and September 1, 2030, respectively, and on each September 1 thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of panty debt as further described in the official statement. The principal balance of outstanding loans payable to the Financing Authority at June 30, 2004 is $87,869,343. 28 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (9) Loans Payable to the City of La Quinta Financing Authority, (Continued) The minimum annual requirements to repay the loan to the Financing Authority as of June 30, 2004 are as follows: 2004 Series A Revenue Bonds June 30 Principal Interest 2005 $ 735,000 2,990,049 2006 1,520,000 4,436,981 2007 1,570,000 4,403,156 2008 1,615,000 4,356,806 2009 1,670,000 4,304,994 2010 1,740,000 4,243,332 2011 1,805,000 4,175,132 2012 1,890,000 4,099,719 2013 1,975,000 4,016,581 2014 2,075,000 3,924,681 2015 2,175,000 3,823,431 2016 2,290,000 3,714,462 2017 2,410,000 3,597,256 2018 2,535,000 3,473,881 2019 2,670,000 3,344,075 2020 2,810,000 3,207,444 2021 2,960,000 3,063,594 2022 3,115,000 2,912,132 2023 3,275,000 2,752,663 2024 3,450,000 2,584,925 2025 3,630,000 2,408,394 2026 3,810,000 2,227,082 2027 4,000,000 2,041,082 2028 4,200,000 1,845,832 2029 4,410,000 1,640,832 2030 4,635,000 1,425,582 2031 4,870,000 1,196,560 2032 5,120,000 952,994 2033 5,380,000 697,000 2034 3,529,343 572,969 87 869 343 88,433,621 29 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements .(Continued) (10) Due to County of Riverside Project Area No. 2 Based on an agreement dated July 5, 1989 between the Agency and the County, until the tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the County 50% of the County portion of tax increment. At the County's option, the County's pass -through portion can be retained by the Agency to finance new County facilities or land costs that benefit the County and serve the La Quinta population. Per the agreement, the Agency must repay all amounts withheld from the County. The tax increment is to be paid to the County in amounts ranging from $100,000 to $250,000 over a payment schedule through June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 2004 is $2,050,000. The minimum annual requirement to amortize due to County of Riverside as of June 30, 2004 are as follows: June 30 Principal 2005 $ 100,000 2006 100,000 2007 100,000 2008 150,000 2009 200,000 2010 200,000 2011 200,000 2012 250,000 2013 250,000 2014 250,000 2015 250,000 $2.050.000 kill LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (11) Pass -through Agreement Payable to Coachella Valley Unified School District An agreement was entered into in 1991 between the Agency, the City of La Quinta and the Coachella Valley Unified School District (District), which provides for the payment to the District a portion of tax increment revenue associated with, properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012 in amounts ranging from $474,517 to $834,076 for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 2004 totaled $6,653,37. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school buses, expansion or rehabilitation of current facilities. The minimum annual requirements to amortize payable to Coachella Valley Unified School District as of June 30, 2003 are as follows: June 30 Principal 2005 $ 726,114 2006 740,636 2007 755,449 2008 770,558 2009 785,968 - 2010 801,688 _. _. ..2011 817,722__ 2012 . 834,076 2013 421,166 6 6 377 12) Advances from the City of La Ouinta _ The City of La Quinta advances money to the Redevelopment Agency to cover operating and capital shortfalls. There is no stipulated repayment date established for the City advance. Interest accrues at 10% per annum. In fiscal year ended June 30, 2004, the City of La Quinta advanced money to Project Area No. 1 in the amount of $6,397,129 with interest accruing at 7% per annum. The maturity date for this advance is November 29, 2033. At June 30, 2004, the outstanding balances for Project Area No. 1 and Project Area No. 2 are $12,335,283 and $16,335,800, respectively. 31 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (13) Pledged Tax Revenues All tax revenues received by the Agency other than the amount required by law to be deposited in a low and moderate income housing fimd, are required to be used to meet debt service requirements of the bond indentures before any payments may be made on other obligations of the Agency. (14) Transfers In and Out The following transfers were made during the.year endedJune 30, 2004: Transfers to the Debt Service — Project Area No. 1 Fund from: Special Revenue — Low/Moderate Income Housing — Project Area No. 1 Transfers to the Debt Service — Project Area No. 2 Fund from: Special Revenue— Low/Moderate Income Housing — Project Area No. 2 Transfer to the Capital Project — Project Area No. 2 Fund from: Debt Service — Project Area No. 2 - Total transfers $1,731,455 (A) 337,984 (A) (A) $1,731,455 and $337,984 were transferred to the Debt Service —Project Area No. 1 and 2 Funds from the Low/Moderate Income Housing — Project Area No. 1 and 2 Funds for debt service payments on the 1995 Housing Tax Allocation Bonds. (B) Proceeds of advances were transferred to the respective Capital Projects Funds to provide financing for certain capital projects. (15) Educational Revenue Augmentation Fund (ERAF) Payment During fiscal year ended June 30, 2004, Chapter 1127 of the 2002 Statutes of the State of California require redevelopment agencies to shift $135,000,000 in property tax revenue to kindergarten through twelfth grade schools and community colleges. The State Department ,of Finance has determined that the La Quinta Redevelopment Agency amount is $1,467,995 of the $135,000,000 which was forwarded to the Riverside County Auditor in accordance with the statute. 32 LA QUINTA REDEVELOPMENT AGENCY Notes to the Basic Financial Statements (Continued) (16) Fund Deficit At June 30, 2004, the Redevelopment Agency, PA No. 2 had a deficit fund balance of $11,104,297. The deficit was created by outstanding advances from the City of La Quinta which are intended to be paid back in the future with anticipated tax increment revenues. 33 (This page intentionally left blank) 34 REQUIRED SUPPLEMENTARY INFORMATION 35 LA QUINTA REDEVELOPMENT AGENCY Notes to Required Supplementary Information Year ended June 30, 2004 (1) Budgets and Budgetary Accounting The Agency adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund are approved by City Council. Appropriations were $3,318,296 during the year. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. 36 A LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Income Housing Fund - PA No. 1 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Taxes Developer fees Investment income Rental income Miscellaneous Total revenues Expenditures: Current: Planning and development Total expenditures Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 5,186,084 5,793,697 5,991,739 - - 20,275 4,400 4,400 - 341,000 341,000 367,598 150,000 150,000 856,474 5,681,484 6,279,097 7,236,086 3,697,992 6,043,599 3,591,028 3,697,992 6,043,599 3,591,029 Excess (deficiency) of revenues over(under)expenditures 1,983,492 235,498 3,645,058 Other financing sources (uses): Transfers out (1,731,455) (1,731,455) (1,731,455) Transfers to the City of La Quinta - 2,216,625 2,216,625 Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 1,731,455 3,948,080 3,948,080 252,037 (3,712,582) (303,022) 4,113,170 4,113,170 4,113,170 $ 4,365,207 400,588 3,810,148 37 208,042 20,275 (4,400) 26,598 706,474 956,989 2,452,571 2,452,571 3,409,560 3,409,560 3,409,560 5,271,524 36,406 376,863 280,752 5,965,545 4,103,060 4,103,060 1,962,485 (1,738,783) 1,548,018 3,286,801 (1,424,316) 5,537,486 4,113,170 LA QUINTA REDEVELOPMENT AGENCY Low/Moderate Income Housing Fund - PA No. 2 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Variance with Budget Final Budget Original Final Actual Positive (negative) Revenues: Taxes $ 2,730,853 2,871,265 3,031,668 160,403 Developer fees 7,054,074 7,054,074 622,305 (6,431,769) Investment income 27,400 27,400 109,504 82,104 Rental income - - 63,580 63,580 Miscellaneous - 122,421 122,421 Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) 9,812,327 9,952,739 3,949,478 5,037,558 5,709,205 562,895 5,037,559 5,709,205 562,895 4,774,769 4,243,534 3,386,583 Sale of capital assets 108,570 Transfers in - - Transfers out (6,688,211) (337,984) Transfers to the City of La Quinta 3,442,855 (3,442,955) 3,437,996 Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 3,442,855 10,131,066 1,667,400 1,331,914 (5,987,532) (280,817) 5,992,910 5,992,910 5,992,910 $ 7,314,824 95,378 5,702,093 38 Prior Year A -a-] 2,479,241 129,263 (6,003,261) 2,608,504 5,146,310 5,146,310 856,951 108,570 6,350,227 4,869 61463,666 765,795 765,795 1,842,709 19,861 (338,895) 246,858 565,892 5,606,715 1,276,917 - 4,706,093 5,606,715 5,982,910 SUPPLEMENTARY INFORMATION S9 Assets Cash and investments Cash and investments with fiscal agent Accounts receivable Interest receivable Advances to the City of La Quinta Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deposits payable Due to the City of La Quinta Total liabilities Fund balances: Reserved for: Advances to the City of La Quinta Unreserved, reported in: Capital projects funds Total fund balancps Total liabilities and fund balances LA QUINTA REDEVELOPMENT AGENCY Non -Major Governmental Funds - Balance Sheet June 30, 2004 Special Revenue Fund Capital Projects Funds Low/Moderate Redevelopment Redevelopment Bond - Agency - Agency - Taxable PA No. 1 PA No. 2 Bond PA No.I $ 1,845,134 - 60,900 - 1,682 - 1,260,695 $ - 3,168,411 Totals 2004 2003 - 1,845,134 2,035,077 8,490,446 8,490,446 17 60,900 60,900 1,682 - 1,260,695 1,109,846 8,490,446 11,658,857 3,205,840 $ 12,084 27,835 - 2,746,630 - 39,919 2,746,630 - 1,260,695 - - 1,867,797 5,743,816 - 3,128,492 5,743,816 12,084 26,353 27,835 27,835 2,746,630 - 2,786,549 54,188 1,260,695 1,109,846 7,611,613 2,041,806 8,872,308 3,151,652 $ - 3,168,411 8,490,446 11,658,857 3,205,840 Aril LA QUINTA REDEVELOPMENT AGENCY Non -Major Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2004 Special Revenue Fund Capital Projects Funds Low/Moderate Redevelopment Redevelopment Bond - Agency - Agency - Taxable Totals PA No. 1 PA No. 2 Bond PA No.I 2004 2003 Revenues: Investment income $ 49,219 71,198 120,417 82,124 Total revenues 49,219 71,198 120,417 82,124 Expenditures: Current: Planning and development Debt service: Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures 174,152 949,968 174,152 949,968 174,152 217,599 949,968 - 1,124,120 217,599 (124,933) (878,770) (1,003,703) (135,475 Other financing sources (uses): Issuance of tax allocation bonds - 26,400,000 26,400,000 - Transfers in 5,800,000 5,800,000 1,100,000 Transfers from (to) the City of La Quinta (74,623) (5,623,604) (19,777,414) (25,475,641) (2,169,913) Total other financing sources (uses) (74,623) 176,396 62622,586 6,724,359 1,069,913 Net change in fund balances (74,623) 51,463 5,743,816 5,720,656 (1,205,388) Fund balances at beginning of year 74,623 3,077,029 - 3,151,652 4,357,040 Fund balances at end of year $ - 3,128,492 5,743,816 8,872,308 3,151,652 41 ASSOCIATES, L.L.P. Board of Directors La Quints Redevelopment Agency La Quinta, California CERTIFIED PUBLIC ACCOUNTANTS 2301 DUPONT DRIVE, SUITE 200 IRVINE, CALIFORNIA 92612 (949) 474-2020 Fax (949) 263-5520 We have audited the financial statements of the La Quinta Redevelopment Agency as of and for the year ended June 30, 2004, and have issued our report thereon dated August 20, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the financial statements of the La Quinta Redevelopment Agency are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the La Quints Redevelopment Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation'of one or more misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Audit committee, management, and the State Controller and is not intended to be and should not be used by anyone other than those specified parties. August 20, 2004 G-tNleA/wnn//�da'w� L.L. 42 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: Approval of a Contract Amendment with Overland, Pacific and Cutler for Additional Relocation Services Related to the Vista Dunes Mobile Home Park RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a contract amendment with Overland, Pacific and Cutler for additional relocation services related to the Vista Dunes Mobile Home Park and appropriate $120,000 from the La Quinta Financing Authority Bond Issue account to fund the cost of these additional services. FISCAL IMPLICATIONS: The cost associated with this amendment is $120,000. Unappropriated funds are available from the 2004 La Quinta Financing Authority Bond Issue (Account No. 248-0000-290-00-00) to fund this request. BACKGROUND AND OVERVIEW: On December 2, 2003 the Agency Board approved a Purchase and Sale Agreement to acquire the Vista Dunes Mobile Home Park in La Quinta Redevelopment Project Area No. 2. As part of that action the Agency Board also approved a $287,500 Relocation Services Contract with Overland, Pacific and Cutler (OPC). OPC was retained to identify the relocation needs of each park resident and assist them with the relocation process. As of November 1, 2004, the relocation settlements have been achieved with 71 of the 92 park residents. Of these, 40 residents have vacated the park. OPC and the Agency's project management consultant, RSG, continue to work with the remaining 21 residents to identify suitable relocation opportunities. OPC's services included determining each resident's specific relocation needs, preparing a relocation plan, submitting relocation offers, finding and continually updating a listing of relocation opportunities, evaluating requests for additional relocation assistance, processing relocation claims, and assisting residents with home purchase and moving arrangements. The initial contract budget was based S:\CityMgr\STAFF REPORTS ONLY\C 15 OPC Amd.doc upon their prior mobile home park relocation experience with other redevelopment agencies. That experience did not include submitting more than one relocation offer or conducting protracted negotiations with relocation clients. This engagement has been different in three ways. First, the Agency has elected to be more sensitive to each resident's specific needs, which required a greater time commitment by OPC staff. Second, the Agency has indicated a desire to relocate residents in, or immediately adjacent to, La Quinta. This has required additional efforts to accommodate those who wish to remain in this area. Third, the La Quinta housing market has been booming since December 2003, which impacts these relocation activities in two ways: the supply of relocation opportunities has diminished and the cost to secure these relocation units has increased. The requested contract amendment is based upon the Park relocation activity OPC has experienced to date, which averages 470 hours, or $36,000, per month. Their services are charged on a time and materials basis, with efforts taken to strike a balance between accommodating resident needs while working to stay within the contract budget. Staff anticipates that the remaining relocation activities will require four to five more months to complete provided the balance of the residents respond in a timely manner. The requested amendment would fund OPC's costs associated with the relocation consultant services for this period. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a contract amendment with Overland, Pacific and Cutler for additional relocation services related to the Vista Dunes Mobile Home Park and appropriate $120,000 from the La Quinta Financing Authority Bond Issue account to fund the cost of these additional services; or 2. Do not approve a contract amendment with Overland, Pacific and Cutler for additional relocation services related to the Vista Dunes Mobile Home Park and do not appropriate $120,000 from the La Quinta Financing Authority Bond Issue account to fund the cost of these additional services; or 3. Provide staff with alternative direction. Respectfully submitted, Oscar Orci, Interim Community Development Director S:\CityMgr\STAFF REPORTS ONLY\C 15 OPC Amd.doc 2 Approved for submission by: Thomas P. Genovese, Executive Director S:\CityMgr\STAFF REPORTS ONLY\C 15 OPC Amd.doc COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: Approval of a Professional Services Agreement with William Bower Associates, Inc./Bower Security for Security Services Related to the Vista Dunes Mobile Home Park RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: 7CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve a Professional Services Agreement (Attachment 1) with William Bower Associates, Inc./Bower Security ("William Bower") for security patrol services related to Vista Dunes Mobile Home Park and authorize payment from the monthly park rental income. FISCAL IMPLICATIONS: The cost associated with this contract is $7,500 per month for a total amount of $45,000. Unappropriated funds are available from the monthly park rental income (Account No. 246-9002-380-26-00) to fund this request. BACKGROUND AND OVERVIEW: Since the Agency acquired the Vista Dunes Mobile Home Park, the La Quinta Police Department has increased patrol activity in the Park. However, Park residents have expressed concerns that with the growing number of vacant coaches, vandalism and other criminal activities have increased. In order to curb these activities, RSG recommended the Agency retain outside security services to patrol the Park 12 hours daily, from 6:00 PM to 6:00 AM. Three security firms (including William Bower) were contacted and interviewed. Two of the three firms subsequently declined because they could not adequately staff this assignment. William Bower was then selected. In addition to providing security services for various gated communities in Indian Wells, the firm also provides security for the Skins Game and the Pacific Life Open in Indian Wells. Due to increasing security concerns voiced by Park residents, the Executive Director elected to execute this contract (after review and approval by the City Attorney and Risk Manager) on an emergency basis pending subsequent Agency Board consideration. This allowed William Bower to initiate security patrols on October 27, 2004. C 16 Bower contract William Bower has the required licenses and insurance to perform the requested security services. They provide a one person, Spanish speaking, unarmed security officer and patrol car stationed at the Park from 6:00 PM to 6:00 AM. This unit conducts constant roving motorized security patrols for areas where there is easy vehicular access. They also perform random foot patrols in those areas that cannot be accessed by motor vehicles. If the security officer notices a suspicious activity he is instructed to call 911 and a William Bower employee for backup, and to monitor the situation from a distance. Upon arrival of armed back-up (a Sheriff patrol or the William Bower supervisor), further investigation and arrest procedures, if required, then begin. Staff anticipates these services will be required for a six month period. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve a Professional Services Agreement with William Bower Associates, Inc./Bower Security for security services related to Vista Dunes Mobile Home Park and authorize payment from the monthly park rental income; or 2. Do not approve a Professional Services Agreement with William Bower Associates, Inc./Bower Security for security services related to Vista Dunes Mobile Home Park and do not authorize payment from the monthly park rental income; or 3. Provide staff with alternative direction. Respectfully submitted, Oscar Ord, Interim Community Development Director Approved for submission by: homas P. Genovese, Executive Director Attachment: 1. Professional Services Contract n J 2 C 16 Bower contract PROFESSIONAL SERVICES AGREEMENT This AGREEMENT FOR PROFESSIONAL SERVICES (the "Agreement"), is made and entered into by and among the LA QUINTA REDEVELOPMENT AGENCY (the "Agency'), and William Bower Associates, Inc./Bower Security (The "Contractor"). The parties hereto agree as follows: 1. SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of the Agreement, the Contractor shall provide those services related to sentry/patrol, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards.prevalent in the industry for such services. Services will be provided to the Agency. 1.2 Contractor's Proposal. The Scope of Services shall include the '.Contractor's proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided- in- accordance with all ordinances, resolutions, statues, rules, regulations and laws of the Municipality, the Agency, and any and all Federal, State or local governmental agency of competent jurisdiction. 1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals -as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, it shall immediately inform Agency of such fact and shall not proceed except at Contractor's risk until written -instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, G0 3 papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to person, or property, until acceptance ofthe work by Agency, except such losses or damages as may be caused by Agency's own negligence. The performance of services by Contractor shall not relieve Contractor from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the Agency, when such inaccuracies are due to the negligence of Contractor. 1.7 Additional Services. In accordance with the terms and conditions of this Agreement, the Contractor shall perform services in addition to those specified in the Scope of Services, (Exhibit "A") when directed in writing to do so by the Contract Officer, provided that Contractor shall not be required to perform any additional services without compensation. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to the Agreement, the Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit `B" and incorporated herein by this reference. The Contractor shall be compensated in an amount not exceeding the maximum contract amount over a potential six (6) month term ofthe lesser of (i) Forty-five Thousand Dollars ($45,000.00) or (ii) Seven Thousand Five Hundred Dollars ($7,500.00) monthly (the "Contract Sum"). The method of compensation set forth in the Schedule of Compensation will include payment for time and materials based upon the Contractor's rates as specified in Exhibit `B", or such other methods as may be specified in the Schedule of Compensation (Exhibit "B"). Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expenses, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation (Exhibit `B" ). 2.2 Method of Payment. Any month in which Contractor wishes to receive payment, Contractor shall submit to the Agency no later than the tenth (10') working day of such month, in the form approved by the Contract Officer, an invoice for services rendered prior to the date ofthe invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, (2) specify each staffmember who has provided services and the number of hours assigned to each such staff member, and (3) indicate the total expenditures to date. Such invoice shall contain a certification by a principal member of Contractor specifying that the payment requested is for work performed in accordance with the terms of this Agreement. The Municipality or the Agency, whichever is appropriate based upon the election of the Agency and the Municipality, will pay Contractor for all expenses stated thereon which are approved by the Municipality or the Agency pursuant to this Agreement no later that the last working day ofthe month. 3.0 PERFORMANCE SCHEDULE Agreement. 3.1 Time of Essence. Time is of the essence in the performance of this 3.2 Schedule of Performance. All services rendered pursuant to this Agreement G0- 4 shall be performed diligently and within the performance of this Agreement. 3.3. Force Majeure. All time periods specified for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargos, acts of any governmental agency other than City, and unusually severe weather, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contracting Officer in writing ofthe causes ofthe delay. The Contracting Officer shall ascertain the facts and the extent of delay and extend the time for performing their services for the period of the forced delay when and if in his judgment such delay is justified, and the Contracting Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 and 7.9 of this Agreement, this Agreement shall continue in full force and effect until all existing tenants have moved from the property. It is anticipated that the term will not exceed six (6) months. 4.0 COORDINATION OF WORK 4.1 Representative of Contractor. The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: 1. 2. It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term ofthe Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Contractor and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. 4.2 Contract Officer. The Contract Officer shall be the Executive Director or such other person as may be designated by the Executive Director of the Agency. The Contract Officer has been authorized to act on behalf of the Agency for the purposes of this Agreement. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Contractor shall not contract G.05 with any other entity to perform in whole or in part the services required hereunder without the express written, approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Independent Contractor. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Agency Cooperation. The Agency shall provide Contractor with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to the Agency. 5.0- INSURANCE INDEMNIFICATION AND BONDS. 5.1 Insurance. The Contractor shall procure and maintain, at its cost, and submit concurrently with its execution of the Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Contractor's acts or omissions rising out of or related to Contractor's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. The amount of insurance required hereunder shall be One NMon Dollars ($1,000,000.00), single limit and per occurrence. The Contractor shall also carry automobile liability insurance -of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by the Contractor, its officers, any directly or indirectly employed by the Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Contractor's performance hereunder and neither the Agency nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming the Agency and its officers and employees as additional insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. Contractor shall also carry Workers' Compensation Insurance in accordance with State Workers' Compensation laws. If required by the contract officer, the Contractor shall procure professional errors and omissions liability insurance in the amount acceptable to the Agency. All insurance required by the Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days' written notice of proposed cancellation to Agency. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Contractor's obligation to indemnify the Agency, its officers, employees, contractors, subcontractors or agents. 5.2 Indemnification. The Contractor shall defend, indemnify and hold harmless the Agency, its officers, officials, employees, representatives and agents, ("Agency indemnitees"), from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s), for damage to property (including property owned by the Agency) ("Claims") and for errors and omissions committed by Contractor, its officers, anyone directly or indirectly employed by Contractor, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Contractor's performance under this Agreement, except to the extent of such loss as may be caused by Agency's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the Agency indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, Contractor shall provide a defense to the Agency indemnitees, or at the Agency's option, reimburse the Agency indemnitees their costs of defense, including reasonable attorney's fees, incurred in defense of such Claims. In addition contractor shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency indemnitees. 5.3 Remedies. In addition to any other remedies the Agency may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, the Agency, at its sole option: 1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under. this Agreement. 2. Order the Contractor to stop work under this Agreement and/or withhold any payments(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. 3. Terminate the Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies the Agency may have and are not the exclusive remedies for Contractor's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to person or G 0 "7 property resulting from Contractor's or its subcontractors= performance of work under this Agreement. 6.0 RECORDS AND REPORTS 6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications; reports, records, documents, and other materials, whether in hard copy or electronic form, which are prepared. by Contractor, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon the termination of this Agreement or upon the earlier request of the Contract Officer, and Contractor shall have not claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such documents for its own use. Contractor shall ensure all subcontractors to assign Agency any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify Agency for all damages suffered thereby. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Contractor in the performance of services under this Agreement shall not be released publicly without the prior written approval ofthe Contract Officer or as required by law. Contractor shall not disclose to any other private entity or person any information regarding the activities of the City or Agency, except as required by law or as authorized by the Agency. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the 7.8 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligation under this Agreement, City may, after compliance with the provision of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owned the Agency as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connections with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non -liability of City Officers and Employees. No officer or employee of the Agency shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the Agency of for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of the Agreement. 8.2 Conflict of Interest. No officer or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, disability or ancestry in the performance of the Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin, physical disability, mental disability, medical condition, age or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give to the other parties or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section 9.1. 009 IN WITNESS WHEREOF, the parties have executed this Agreement as ofthe dates stated below. Dated:�'� ATTEST: A%encYlecreterY � V APPROVED AS TO FORM: A �- Agency Counsel Dated: /D Zb Qk Dated: 1©1.20 /0 c/ LA QUINTA REDEVELOPMENT AGENCY, (a public body, corporate and politic) l By: Z)z'*4 7 -� � . EXE UTIVB DIRECTOR "AGENCY" "CONTM.-P, By: OZZIE CEJA Title: GENERAL MANAGER 00 COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: Consideration of an Appropriation for SilverRock Resort and Adoption of a Resolution Making Certain Findings Pursuant to Health & Safety Code Section 33445 RECOMMENDATION: 0 leAft - WWWW 9V AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: N Appropriate $2,297,018 from economic development reserves toward SilverRock Resort capital projects and adopt a Resolution making certain findings pursuant to Health & Safety Code Section 33445. FISCAL IMPLICATIONS: Redevelopment Project Area No. 1 retains a balance of $1,072,521 in unallocated reserves. Project Area No. 2 retains $1,1 12,445 in unallocated reserves. An additional $1 12,052 is available in Project Area No. 1 unallocated proceeds from the 2003 RDA taxable bond sale. Combined, the aforementioned reserves total $2,297,018. The SilverRock Resort project requires additional funds to facilitate golf course completion in time to take advantage of seasonal 'play. Accordingly, staff seeks allocation of available reserves in Project Areas No. 1 and No. 2 toward SilverRock Resort for the following: • Sign monuments • Maintenance yard improvements • Soil stabilization • Golf Course construction • Expedited perimeter improvements • Clubhouse and Retreat furnishings, fixtures and equipment • Miscellaneous fees and contingency for capital improvements BACKGROUND AND OVERVIEW: The tree relocation, mass grading and golf cart bridge projects are complete and the following projects are under construction at SilverRock Resort: Golf Course No. 1 - Weitz Golf Maintenance Building and Comfort Stations - Davis Reed Construction Avenue 521 Avenue 54, and Clubhouse Road Improvements - Granite Construction Temporary Clubhouse - Davis Reed Construction Perimeter Parkway landscape Improvements Site Improvements for Maintenance Building and Temporary Clubhouse The irrigation well project is the only remaining contract to complete Phase 1 of the SilverRock Resort, which is scheduled for award by the Agency on December 7, 2004. To date over $26 million has been awarded by the Agency for construction contracts since the project started last February with a total of approximately $1.6 million in contract. change orders to date. The finishing touches are being coordinated and constructed for Phase I of the SilverRock Resort project. Staff is making every effort to expedite construction in an effort to open the course in time to capture seasonal play (i.e., January - March). Additional funds are being sought to accommodate the following estimated expenses: 1. Sign Monuments: 'GMA has worked with Public Works staff to present field mock- ups of proposed entry and roundabout signage for the project. As depicted, staff estimates the monument cost, including lighting, at: $150,000 2. Maintenance Building Improvements: Shade structures and parking lot lighting are proposed to provide additional equipment protection and security. Estimated cost: $121,000 3. Soil Stabilization: Chemical stabilization of the project site is provided as part of the construction budget. This stabilization will last 4 to 6 months if not disturbed. Additional ground cover/irrigation for stabilizing three project components is proposed: The 14-acre casita pad within the Phase I golf envelope; the 40-acre parking/park site near the roundabout; and the remaining Phase 2 property. Staff proposes to stabilize the 14-acre pads with ground cover and temporary irrigation at an estimated cost of: $100,000 4. Golf Course Construction: On August 17, 2004 the Agency approved increasing the aggregate Contract Change Order (CCO) amount to $1.3 million. To date 2 approximately $647,000 in change orders have been approved for Weitz Golf for construction of Golf Course No. 1 with approximately $1 .3 million under negotiation with the contractor. As with the mass grading contract, delays caused by the conflict with the Verizon telephone duct across Hole nos. 2, 4, 6 and 7 amounted to an estimated $281,000 in delays to Weitz Golf. This estimate is under review by staff and will be included in the claim to Verizon at the conclusion of the project. Other delays from prohibitions against working within the canal right-of- way and other delayed permits from CVWD have resulted in considerable additional expense to the construction of the golf course. Additionally storm damage, upgrades to plant material recommended by the landscape architect and unanticipated utility coordination work including additional power and phone requirements necessary to accommodate the Bob Hope Chrysler Classic account for the balance of the proposed CCO's Estimated cost: $700,000 5. Expedited perimeter roadway and on site street and utility improvements: This project was awarded by the Agency on August 2, 2004, however work could not be started until November 8, 2004. Delays in CVWD plan approvals, coupled with system enhancements proposed by CVWD, have required schedule adjustments by Granite Construction in order to complete the entry improvements by the proposed dedication date of January 17, 2005. Estimated cost: $250,000 6. Clubhouse and Retreat Furniture, Fixtures and Equipment: Staff suggests an FF&E budget for the SilverRoc.k Retreat and Clubhouse at $200,000 7. Utility screening, lake telemetry, contractor performance payments and miscellaneous utility improvements: These improvements will include block walls and landscaping to screen various utility boxes; payments to contractors that have met performance requirements; temporary fire hydrants, and other miscellaneous items (i.e., retention basins, pumps, drains, etc.) Estimated cost: $300,000 8. Fees and contingency for capital improvements: Staff suggests allocating an additional contingency of $476,018 from remaining Project Area No. 1 and No. 2 reserves toward SilverRock Resort to ensure timely project completion. Anticipated expenses will include funding for CVWD connection fees (currently estimated at $260,000), preparation of documents for transmittal of the property from the Agency to City, contingency for vertical construction (i.e., previously awarded without specific contingency allocations), etc. The total supplemental allocation recommended pursuant to the above is $2,297,018. These funds are available in Project Area No. 1 and No. 2 reserves: RDA CIP No. 1 ($1,072,521), RDA CIP No. 2 ($1,1 12,445) and RDA CIP No. 1 Taxable ($1 12,052). Staff recommends the establishment of the contingency account at $876,000 to provide adequate resources for prompt decisions to complete the project as quickly as 3 possible to take advantage of "seasonal" play at market rates. Funds not required for actual Phase I construction may, with the Agency's approval, be applied to additional project -related capital improvement expenses to include CVWD water well requirements and Phase 2 project area stabilization/parking. Staff is negotiating an agreement for water services with CVWD that will require phased improvements and payments toward regional water system enhancements. Additionally, soil stabilization must be completed for Phase 2 development areas. Staff is in the process of hiring a golf and landscape manager, whose expertise will be beneficial in refining plans for Phase 2 stabilization work. But both of these projects will require significant budget allocations which have not been sufficiently accounted for at this time (i.e., requiring re -visitation of Phase 2 funding allocations currently provided for the permanent clubhouse and certain Phase 2 infrastructure). FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Appropriate $2,297,018 from economic development reserves from Project Area No. 1 and Project Area No. 2 toward SilverRock Resort capital projects and adopt a Resolution making certain findings pursuant to Health & Safety Code Section 33445; or 2. Do not appropriate $2,297,018 million from economic development reserves toward SilverRock Resort capital projects; or 3. Provide staff with alternative direction. Respectfully submitted, Mark Weiss, Assistant Executive Director Approved for submission by: l - Thomas P. Genovese, Executive Director 4 RESOLUTION NO. RA 2004- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA MAKING AND UPDATING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a), RELATING TO THE DEVELOPMENT OF THE SILVERROCK RESORT PROJECT WHEREAS, on the 15th day of May, 2001 the La Quinta City Council (the "City Council") approved the 2001-02 Economic Development Plan, which includes implementation policies supporting economic diversification, business expansion, economic protection and preservation, and recreational opportunities; and WHEREAS, the La Quinta Redevelopment Agency owns 525 acres of property (the "SilverRock Resort") located in La Quinta Redevelopment Project Area No. 1 (the "Project Area"), which is suitable to attain the aforementioned objectives; and WHEREAS, on the 16th day of April, 2002 the City Council made findings pursuant to Health and Safety Code 33345 to approve use of funds from Redevelopment Project Area No. 1 for an Option Agreement to allow the La Quinta Redevelopment Agency (the "Agency") an opportunity to complete due diligence activities related to acquiring the SilverRock Resort; and WHEREAS, on 15th day of May, 2002, and October 21, 2003, the Agency made certain findings related to acquiring the SilverRock Resort; and WHEREAS, the Agency has now approved an updated budget for the SilverRock Resort project; and WHEREAS, the Agency now wishes to update its prior findings now that the budget has been updated; and WHEREAS, the lack of recreational facilities and the prevalence of economic maladjustment were documented as some of the conditions of blight that justified the formation of the Project Area, as cited in the October 1983 Report to the La Quinta City Council on the Proposed Redevelopment Plan for La Quinta Redevelopment Project Area No. 1; and WHEREAS, the lack of recreational facilities and the prevalence of economic maladjustment were documented as some of the conditions of blight that 5 Resolution No. RA 2004- The SilverRock Resort Adopted: November 16, 2004 Page 2 justified the formation of Project Area No. 2; and WHEREAS, Section 518 of the Redevelopment Plans for La Quinta Redevelopment Project Area Nos. 1 and 2, as amended, authorizes the Agency to purchase and improve property for park, recreation, cultural and community facilities; and WHEREAS, developing the SilverRock Resort project would afford the Agency the opportunity to address some of the aforementioned conditions of blight; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to develop the SilverRock Resort project; and WHEREAS, it would be in the best interest of the public to pursue the development of the SilverRock Resort project. NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment Agency as follows: SECTION 1. The above recitations are true and correct and are adopted as the findings of the Agency Governing Board. SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the Agency finds and determines that: A. The continued development of the SilverRock Resort project is of benefit to Project Area Nos. 1 and 2, and to the immediate neighborhood in which the SilverRock Resort is located. B. No other reasonable means of financing the SilverRock Resort project are available to the community. C. The payment of funds for the development of the SilverRock Resort project will assist in the elimination of one or more blighting conditions inside the Project Area, including the lack of recreational facilities and opportunities, and is consistent with the Agency's implementation plans adopted pursuant to Section 33490. N. Resolution No. RA 2004- The SilverRock Resort Adopted: November 16, 2004 Page 3 D. This resolution shall take effect from and after its adoption. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on the 161h day of November, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: TERRY HENDERSON, Chair La Quinta Redevelopment Agency ATTEST: JUNE S. GREEK, CMC, Agency Secretary La Quinta Redevelopment Agency (Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency 7 t e � COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: Consideration of Monument Signage for SilverRock Resort RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION:, PUBLIC HEARING: Review and select SilverRock Resort monument signs for the Avenue 52 entrance and the corner of Avenue 52 and Jefferson Street. FISCAL IMPLICATIONS: None for this action. Depending on the size and material selected, it is estimated that the signs and related lighting improvements could cost up to $ 150,000. Because monument signage was not part of the original SilverRock budget, it has been included in a budget appropriation to be considered by the Agency Board today. BACKGROUND AND OVERVIEW: On May 4, 2004, the Agency Board approved the perimeter landscape design, created by Pinnacle Design Company, which included "placeholders" for monument signage at the Avenue 52 and Jefferson entrances, and on the wall facing the roundabout. Because Pinnacle does not provide sign design services, staff asked GMA International to draft conceptual monument signs that would be compatible with the overall master plan and entry feature design. GMA staff presented monument signage concepts (Attachment 1) for Agency Board consideration at its September 22, 2004 meeting. The meeting minutes are included as Attachment 2. GMA proposed a 25-foot long horizontal sign at the Avenue 52 entrance; however, the Agency Board also discussed possibly extending the length of that sign to 40 feet. The Agency Board directed staff and GMA to construct mock-ups of the proposed signage to be placed at the Avenue 52 entrance and at Avenue 52/Jefferson Street, facing the roundabout. The mock-ups have been on site for two weeks, and photos are included as Attachment 3. The mock-ups represent sign sizes as proposed by GMA; the horizontal sign at the Avenue 52 entry is approximately 25 feet long and the two vertical pilaster signs are 16 feet high. The roundabout sign mock-up is approximately 72' feet long from end to end. At the September 22, 2004 meeting, the Agency Board requested options for the signs' wording because the proposed signs did not include the project's full name, SilverRock Resort, and lacked the City's name. GMA addressed this in the mock up signs by adding a second line in smaller print. The Avenue 52 entry sign reads, "SilverRock" in large letters on the first line and "Resort at La Quinta" in smaller letters on the second line. The roundabout sign reads, "SilverRock" in large letters on the first line and "Resort of La Quinta" in smaller letters on the second line. Another option, based on Agency Board discussion on September 22, 2004, is wording that reads "SilverRock Resort" on the first line and "La Quinta" in smaller letters for the second line. (Attachment 4) However, this would require a larger sign. GMA proposed placing stainless steel letters on the sign; the Agency Board concurred. GMA also presented different types of stone that could be used for the signs, and the Agency Board expressed a preference for a dark green stone. However, the Agency Board also requested a rendering of the sign in a lighter stone color with black letters. Color options are included as Attachment 5. Steve Garcia of GMA will be at the meeting to discuss the various options. Staff is seeking direction with regard to sign size, wording, and preferred stone and lettering color. Once final selections have been made, staff can begin the sign program review process (as the signs do not conform to current City development standards), then proceed with construction documents and bidding. Because construction of perimeter improvements is underway, it is imperative to move forward with monument signage. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Review and select SilverRock Resort monument signs for the Avenue 52 entrance and the corner of Avenue 52 and Jefferson Street; or 2. Do not select SilverRock Resort monument signs for the Avenue 52 entrance and the corner of Avenue 52 and Jefferson Street; or 3. * Provide staff with alternative direction. Respectfully submitted, sz.` Mark Weiss, Assistant Executive Director 2 Approved for submission by: qw, " '. , "!T � �" < � e, " Thomas P. Genovese, Executive Director Attachments: 1. Proposed Signage Concepts of September 22, 2004 2. Meeting Minutes of September 22, 2004 3. Photos of Sign Mock -Ups 4. Wording Options 5. Monument Sign Renderings with Alternate Colors ATTACHMENT Not 44 tx I HIM m 5 :,Off 6 Redevelopment Agency Minutes September ff' POMENT 2 O The Redevelopment Agency recessed to Closed Session to and until the hour of 3:00 p.m. o3.nn o we PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES MOTION - It was moved by Board Members Sniff/Adolph to approve the Minutes of September 7, 2004 as submitted. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTER DATED SEPTEMBER 22, 2004. 2. TRANSMITTAL OF .TREASURER'S REPORT DATED JULY 31, 2004. 3. TRANSMITTAL OF REVENUES AND EXPENDITURES REPORT DATED J U LY 31, 2004. MOTION - It was moved by Board Members Sniff/Adolph to approve the Consent Calendar as recommended. Motion carried unanimously. BUSINESS SESSION 7 1. CONSIDERATION OF MONUMENT SIGNAGE FOR SilverRock RESORT. Assistant Executive Director Weiss presented the staff report. Steve Garcia, of GMA International, reviewed monument sign concepts for the entrances at Avenue 52, Jefferson Street, and Avenue 54, along with signage for the southwest corner near the roundabout. He indicated the material for the base of the sign is the same as that used for the clubhouse. 7 Redevelopment Agency Minutes September 22, 2004 In response to Board Member Osborne, Public Works Director Jonasson stated the material for the stone veneer on the perimeter wall has not been selected but will be near or the same as what Mr. Garcia is presenting for the sign. Board Member Sniff asked about lighting, and if the logos would be on all four sides of the pilasters. Mr. Garcia indicated indirect lighting or lighting directed from the landscaping can be used. He stated the pilasters are proposed to have logos on two sides. Board Member Adolph noted the pilasters will be too far from .Avenue 52 for the logos to be seen from there. Mr. Garcia indicated the sign will be approximately 25 feet long and 9 feet high from the _ base with the letter size for the capital "S" being 20-22 inches high. The. pilasters will be 16 feet high. Board Member Perkins asked how the size compares to the monument entrance signs on Highway 111. Mr. Garcia stated he believes the proposed size is in proportion to the entrance area but suggested setting up a mockup sign on site to get a better idea of the size. In response to Chairperson Henderson, Mr. Weiss confirmed the proposed signage is already beyond what the City's sign ordinance typically allows, and will require going through the Planning Commission for an exemption. The sign ordinance allows a sign in the middle of the entrance or signs on either side of the entrance but not all three as proposed. However, the City has accepted signage of this scope for some projects recently annexed into the City. He confirmed a mockup sign can be done to visualize the size. Board Member .Adolph suggested using plywood and paint for the location of the stone work and lettering size to provide a sense of proportion. Board Member Perkins indicated he prefers to error on the side of huge as opposed to small. Redevelopment Agency Minutes September 22, 2004 Board Member. Sniff agreed and suggested 35 to 40 feet long. He further suggested the wording, "SilverRock Resort" with a second line reading "La Quinta." Chairperson Henderson suggested staff bring back options for the wording. Board Member Adolph stated he doesn't want to see a billboard -size sign. Board Member Osborne referenced the need for the sign on Jefferson Street to be proportionate to the size of that entrance. Board Member Perkins stated he agrees with using La Quinta or the City seal on the sign. Chairperson Henderson noted the sign concept for the roundabout area resembles the PGA West entrance, and she feels it should be different. Mr. Garcia indicated the PGA West entrance has clustered palms whereas the palms are more defined in the roundabout concept. Board Member Adolph agreed the two are very similar. Chairperson Henderson stated she supports moving forward with the sign design if the roundabout sign is modified to be less like PGA West, perhaps with a taller sign and no trees. Mr. Weiss noted the approved landscape plan, which is not part of GMA's contract, may be different than what is shown here. Mr. Garcia confirmed he took some liberty with the trees in the design. Board Member Sniff indicated he cannot support the signage unless "La Quinta" is included in the wording. Chairperson Henderson noted a larger sign means more money. She further noted most of the items that have gone over budget have been at the suggestion of the Agency. Board Member Sniff stated he views this as a long term issue, and feels prorating the cost over a 50-year period is -,not so bad. Redevelopment Agency Minutes T September 22; 2004 Chairperson Henderson stated she is not sure a 40-foot long sign is needed. Board Member Adolph noted the size will depend on the overall scope of the entrance. In summarizing, Mr. Weiss . stated it's his understanding that the Agency wants a mockup sign done for size purposes and alternatives for wording brought back, but otherwise accepts the signage concept. He referenced the need to bring the GMA contract back for amendment, and noted the signage, as proposed, exceeds the zoning allowance of 50 square feet per sign with an aggregate of 100 square feet. Board Member Sniff stated he feels the entrance is unique and requires some change. Mr. Weiss indicated this issue will be brought back to the Agency in. about 30 days. Board Member Adolph voiced support for the sign design. Board Member Sniff suggested using the light colored stone. Chairperson Henderson indicated she believes the stainless steel letters will be more visible on the green (darker) stone. _ After taking a brief recess to view the stones in natural light, there was consensus to go with the green (darker] stone and stainless steel letters. Board Member Adolph asked if there would be horizontal splits in the stone, and Mr. Garcia responded the stones will lay flat. Board Member Sniff requested staff come back with an alternative using the lighter stone with black letters. Chairperson Henderson stated she doesn't have a problem with a sketch being brought back showing the, alternative. In response to Board Member Adolph, Mr. Weiss indicated the mockup sign should be ready in a few weeks. 10 Redevelopment Agency Minutes. September 22, 2004 Board Member Osborne inquired as to why monument signage wasn't, part of the budget, and if anything else will be coming up that is not in the budget. Mr. Weiss noted the original plans were much simpler, and did not include the monument signage or wall expense that has since been approved. He added the grand elevations with lakes and waterfalls were not envisioned in the earlier plans.. As for additional items that may come up, he stated the budget analysis presented a few weeks ago d.id not specifically include some of the furniture, fixtures, and equipment for the clubhouse, and it hasn't been determined how much of that will be included in the operations budget and how much in the construction budget. Board Member Osborne asked if there's room in the funding approved at the last meeting to cover future items not included or understated in the budget. Mr.. Weiss stated he can't say there will not be a need for additional funding because things could come up in the field that require change orders to finish the project. Board Member Osborne referenced the need for the Agency to know how much more will be needed to finish the project. Chairperson Henderson. indicated she understands his concerns but noted issues such as the entrance and fencing, and now the signage potentially' going .from 25 to 40 feet, 'have been entirely up to the Agency's desires. Board Member Osborne stated the Agency looks at what is presented, and they didn't ask for lakes to be included in the original drawings. He wished to know what the financial needs are for this project between now and the opening in three months. Mr. Weiss stated staff provided the best knowledge they had on this issue two week ago but have since become aware of the furniture, fixtures, and equipment issue that may or may not be a real issue. He stated issues come up daily in the field that are different from what was provided by the architect and staff is doing their best to address those issues. The costs for perimeter improvements in the original budget did not list specifics and as the Agency has provided input on the various components of those improvements, the budget has been 11 Redevelopment Agency Minutes September 22, 2004 adjusted and draws have been made on the contingency fund to accomplish those objectives. Board Member Osborne voiced concern about piece-mealing this for the next three months. Chairperson Henderson stated it's her understanding that the report two weeks ago was fairly current and can be used to determine the current status. Mr. Weiss stated he anticipates coming back with an amendment to GMA's contract because. the current authorization is almost used up. He suggested having the leeway- for GMA to get started on the field monument presentation with the understanding that a change order will be coming back for approval as soon as possible. Based on the Agency's input today, he noted the cost estimate of $100,000 for signage will probably not be enough because of . the possible size increase. Board Member Sniff stated he understands Board Member Osborne's concerns but feels it's important to produce the best possible project and noted some of these costs are one-time expenses. He feels as the project moves forward, the Agency is able to see with greater clarity what they want the final product to be. No formal action was taken: 2. CONSIDERATION OF FIRST AMENDMENT TO THE DISPOSITIO ND VELOPMENT AGREEMENT (DDA) BETWEEN THE UINTA RE ELOPMENT AGENCY AND CENTERPOINT L FOR THE DEV PMENT OF THE AGENCY'S MILES ENUE AND WASHI ON STREET PROPERTY. Assistant Exe ive Director Weiss an onsultant Frank Spevacek presented the sta eport. In response to Board mb sborne, Mr. Spevacek explained the DDA currently requires a d to be in place and permits issued when the land is sold, but nter int doesn't want to get bonds two or three months pri building p it issuance. .Richard QVOhaht, the applicant, state ennar Homes will be using the arch' ural designs previously presente o the Agency. 12 _1.6 18 0) 0 0 cr r-11 19 ATTAC 20 mm D < CD D CD 22 m O C m CL 0) C7 O C r+ O e-F O� J Lr.mi �Iqqw L 24 i w 27 28 29 T' Tarn G�n c vets e , �xec��% � �-�i Gre-,�K, A�j ��'t� Sac re, � ,, - cpM: Aieno 134aLei.. baipte vrsr 12e can sdcrhfiyn�A- �vs� nes s T+em #.Z - NOVO NOV. aooy Pursv4ij 4o 5ec+Jtyi 3 0 f F�eso luf,'�► herb r rI uesf- f�Y10+'1- v wLe-vt s I A 41 e. Kesal` 4. �r-dOeaC o� 6v� I (�� ;-06L( Aua�r��ss (3vtr�L %lc�x AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: November 16, 2004 CONSENT CALENDAR: ITEM TITLE: STUDY SESSION: A Joint Public Hearing Between the City Council / and Redevelopment Agency to Approve an PUBLIC HEARING: Agreement to Sell Real Property Located at 52-195 Avenida Mendoza By and Between the La Quinta Redevelopment Agency and Margarita Sanchez RECOMMENDATION: Approve the sale of 52-195 Avenida Mendoza to maintain an affordable housing unit in Project Area No. 1 for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale. FISCAL IMPLICATIONS: The Agreement would result in the Agency receiving approximately $79,000 from sale proceeds. The Agency would also provide a $78,000 silent second trust deed loan to insure that the dwelling is affordable to a very low-income household for 45 years. BACKGROUND AND OVERVIEW: In August, 1995, the Agency acquired 50 single-family homes located in the Cove to secure these units from bankruptcy proceedings filed by the then owner, Coachella Valley Land. Prior to the bankruptcy, the Agency invested $1.0 million to maintain the dwellings as very low-income rental units. Since then, the Agency has substantially rehabilitated these dwellings to correct deficiencies and improve their appearance. These costs have been funded from rental income. In February 1998, the Agency directed staff to sell two (2) units per year first to qualified tenants, and secondly, to other eligible very low-income households. The proposed sale is the thirteenth (13th) unit to be sold, eight (8) to existing tenants and five (5) to non - tenant households. When the Agency initiated relocation activities at the Vista Dunes Mobile Home Park, staff initiated efforts to identify Park residents who were interested in, and who may qualify for, purchasing single-family dwellings that were either in the Agency's rental housing program or featured an Agency -sponsored silent second trust deed mortgage. Staff is contacted by the property manager (in the case of the rental housing program) or realtors (in the case of homes with silent second trust deed mortgages) when these dwellings are available for sale. Ms. Sanchez, who is a Vista Dunes resident, expressed interest in purchasing a home and took the required actions to qualify for a first trust deed loan.. This home then came available, and upon inspection, she elected to purchase it. The sale transaction would be structured as other Agency affordable housing projects, wherein an Agency silent second trust deed mortgage would cover the difference between the market sales price and an affordable first trust deed mortgage. The proposed purchaser is not an existing tenant; however, this property was vacant and the buyer is a very low-income household. If this sale is authorized, the unit will be sold for the market value of $165,000, with the buyer funding an 18% down payment and a private lender originating a $57,500 first trust deed mortgage (the maximum loan the homebuyer can obtain). The Agency would convert $78,000 of its equity in the property into a silent second trust deed loan. This unit has been substantially rehabilitated and therefore, can be counted toward the Agency's inclusionary housing requirement. FINDINGS AND ALTERNATIVES: Alternatives available to the Redevelopment Agency include: 1. Approve an agreement to sell real property located at 52-195 Avenida Mendoza to Margarita Sanchez for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale; or 2. Do not approve an Agreement to sell real property located at 52-195 Avenida Mendoza to Margarita Sanchez for a purchase price of $165,000 and do not authorize the Executive Director to execute the necessary documents to complete the property sale; or 3. Provide staff with an alternative direction. Respectfully submitted Oscar Ord, Interim Community Development Director r 0# Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Summary Report laquinta\lghp\rental housing\PH 4 52-195 mendoza ATTACHWNT 1 SUMMARY REPORT FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND MARGARITA SANCHEZ November 16, 2004 INTRODUCTION This document is the Summary Report ("Report") for the proposed Sale Agreement ("Agreement") between the La Quinta Redevelopment Agency ("Agency") and Margarita Sanchez ("Buyer"). The purpose of Agreement is to facilitate the sale by the Agency of a single-family dwelling to the Buyer. This Report has been prepared pursuant to Section 33433 of the California Health and Safety Code ("California Community Redevelopment Law") and presents the following: • A summary of the proposed transaction. • The cost of the sale to the Agency. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the Agency's Redevelopment Plan. • The estimated value to be conveyed, determined by the use and with the conditions, covenants, and development costs required by the Agreement. • An explanation of why the sale, pursuant to the Agreement, will assist in the elimination of blight. SUBJECT PROPERTY The home is a vacant 3-bedroom 2-bath single-family dwelling located at 52-195 Avenida Mendoza within La Quinta Redevelopment Project Area No. 1 ("Property"). The Agency acquired the Property in 1995 to preserve single-family homes that were affordable to very -low income Section 8 households. These homes have been rented to said households since 1995. The Property was recently vacated. At the same time the Agency initiated the process of relocating residents from the Vista Dunes Mobile Home Park. The Buyer, a Vista Dunes resident who was being relocated, expressed interest in purchasing a home in La Quinta and subsequently qualified for a first trust deed loan. The Agency then elected to enter into the Agreement to facilitate this sale. 0 () 4 THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT The Agreement will accommodate the sale of the Property to the Buyer, who will occupy the dwelling. The sales price of $165,000, which represents the fair market value, will be funded through a combination of the Buyer's down payment of $29,500, a first trust deed mortgage of $57,500, and the Agency's equity of $78,000 that will be converted into a silent second trust deed loan. This second trust deed loan will include covenants to insure that the Property will remain affordable to very low income -households for 45 years. History of Property This Property is part of the Agency Rental Property Purchase Program. In May 1998, the Agency offered these properties first to the existing tenants for purchase and secondly to other qualified very low income households. This property was vacated by the previous tenant and the Buyer subsequently expressed an interest in purchasing the unit. Recently, the Buyer was approved by Total Financial Group for a mortgage up to the amount of $57,500. The Buyer qualifies as a very low income household and is relocating from the Vista Dunes Mobile Home Park. The Cost of the Sale to the Agency To date the Agency has invested $127,750 in the Property through a combination of the initial purchase cost ($86,500) and expenses related to rehabilitating' the dwelling ($41,250). Per the Agreement the Agency will sell the Property for $165,000; of this amount the Agency will receive $79,000 in sale proceeds and retain a silent second trust deed of $78,000 in order to insure that the annual costs are affordable to very low income households. Estimated Value of the Interest to be Conveyed, Determined at the Highest and Best Uses Permitted by the Agency's Redevelopment Plan The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that the Property shall be used for low -density residential development. Based upon current residential property sales of like dwellings in the Cove market area the estimated value of the Property is $165,000, given the uses permitted by the Agency's Redevelopment Plan. Estimated Value of the Interest to be Conveyed, Determined at the Use With the Conditions, Covenants, and Development Costs Required by the Agreement The Agreement provides that the Property will be sold at the current market value of $165,000, which reflects the fair market value. �l 5 1aquintaN1ghp\mmta1 housing\,SumRpt52-195 mendoza Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist in the Elimination of Blight The Agreement does not eliminate blight in that it does not facilitate a transaction that remedies blight. Instead the Agreement expands that Agency's affordable housing efforts and increases the community's supply of affordable housing. Prior to the sale, the Agency substantially rehabilitated the Property extending the Property's economic life while improving its appearance. Thus, the transaction will insure the continued affordability of a substantially rehabilitated single-family dwelling to a very low income household. G 0 6 laquinta\lghp\rental housing\SumRpt52-195 mendoza COUNCIL/RDA MEETING DATE: November 16, 2004 ITEM TITLE: A Joint Public Hearing Between the City Council and Redevelopment Agency to Approve an Agreement to Sell Real Property Located at 52-965 Avenida Carranza By and Between the La Quinta Redevelopment Agency and Anabel Sanchez RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve the sale of 52-965 Avenida Carranza to maintain an affordable housing unit in Project Area No. 1 for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale. FISCAL IMPLICATIONS: The Agreement would result in the Agency receiving approximately $77,500 from sale proceeds. The Agency would also provide a $79,500 silent second trust deed loan to insure that the dwelling is affordable to a low-income household for 45 years. BACKGROUND AND OVERVIEW: In August, 1995, the Agency acquired 50 single-family homes located in the Cove to secure these units from bankruptcy proceedings filed by the then owner, Coachella Valley Land. Prior to the bankruptcy, the Agency invested $1.0 million to maintain the dwellings as very low income rental units. Since then, the Agency has substantially rehabilitated these dwellings to correct deficiencies and improve their appearance. These costs have been funded from rental income. In February 1998, the Agency directed staff to sell two (2) units per year first to qualified tenants, and secondly, to other eligible very low-income households. The proposed sale is the fourteenth (141 unit to be sold; nine (9) of these units were sold to existing tenants and five (5) to non -tenant households. The proposed purchaser is an existing tenant who initially expressed an interest in purchasing the property several years ago, took the required actions to qualify for a first trust deed loan, and now qualifies in the low-income category. Because many of the tenants are now receiving work training as a requirement of their state and county assistance, their economic situation is improving, and therefore they no longer meet the criteria to qualify as very low-income. The sale transaction would be structured as other Agency affordable housing projects, wherein the existing Agency -funded silent second trust deed would cover the difference between the market sales price and an affordable first trust deed mortgage. If this sale is authorized, the unit will be sold for the market value of $165,000, with the buyer funding a 3% down payment and a private lender originating an $80,550 first trust deed mortgage (the maximum loan the homebuyer can obtain. The Agency would convert $79,500 of its equity in the property into a silent second trust deed loan. This unit has been substantially rehabilitated and therefore, can be counted toward the Agency's inclusionary housing requirement. FINDINGS AND ALTERNATIVES: Alternatives available to the Redevelopment Agency include: 1. Approve an agreement to sell real property located at 52-965 Avenida Carranza to Anabel Sanchez for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale; or 2. Do not approve an Agreement to sell real property located at 52-965 Avenida Carranza to Anabel Sanchez for a purchase price of $165,000 and do not authorize the Executive Director to execute the necessary documents to complete the property sale; or 3. Provide staff with an alternative direction. Respectfully submitted O k ar Orci, Interim Community Development Director Approved for submission by: G• Thomas P. Genovese, Executive Director Attachment: 1. Summary Report Oj1 2 1aquintaVghp\renta1 housingTH 5 52-965 carranza ATTAt�Mw�'�T 1 SUMMARY REPORT FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND ANABEL SANCHEZ November 16, 2004 INTRODUCTION This document is the Summary Report ("Report") for the proposed Sale Agreement ("Agreement") between the La Quinta Redevelopment Agency ("Agency") and Anabel Sanchez ("Buyer"). The purpose of Agreement is to facilitate the sale by the Agency of a single-family dwelling to the Buyer. This Report has been prepared pursuant to Section 33433 of the California Health and Safety Code ("California Community Redevelopment Law") and presents the following: • A summary of the proposed transaction. • The cost of the sale to the Agency. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the Agency's Redevelopment Plan. • The estimated value to be conveyed, determined by the use and with the conditions, covenants, and development costs required by the Agreement. • An explanation of why the sale, pursuant to the Agreement, will assist in the elimination of blight. SUBJECT PROPERTY The home is a vacant 3-bedroom 2-bath single-family dwelling located at 52-965 Avenida Carranza within La Quinta Redevelopment Project Area No. 1 ("Property"). The Agency acquired the Property in 1995 to preserve single-family homes that were affordable to very -low income Section 8 households. These homes have been rented to said households since 1995. The Buyer is the current tenant of this home who expressed interest in purchasing it and subsequently qualified for a first trust deed loan. The Agency then elected to enter into the Agreement to facilitate this sale. 0 0 3 THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT The Agreement will accommodate the sale of the Property to the Buyer, who will continue to occupy the dwelling. The sales price of $165,000, which represents the fair market value, will be funded through a combination of the Buyer's down payment of $4,950, a first trust deed mortgage of $80,550, and the Agency's equity of $79,500 that will be converted into a silent second trust deed loan. This second trust deed loan will include covenants to insure that the Property will remain affordable to low income -households for 45 years. History of Property This Property is part of the Agency Rental Property Purchase Program. In May 1998, the Agency offered these properties first to the existing tenants for purchase and secondly to other qualified very low income households. The Buyer is the current tenant who expressed an interest in purchasing the unit and was recently approved by Total Financial Group for a mortgage up to the amount of $80,550. The Buyer qualifies as a low income household. The Cost of the Sale to the Agenc To date the Agency has invested $127,750 in the Property through a combination of the initial purchase cost ($86,500) and expenses related to rehabilitating the dwelling ($41,250). Per the Agreement the Agency will sell the Property for $165,000; of this amount the Agency will receive $77,500 in sale proceeds and retain a silent second trust deed of $79,500 in order to insure that the annual costs are affordable to low income households. Estimated Value of the Interest to be Conveyed, Determined at the Highest and Best Uses Permitted by the Agency's Redevelopment Plan The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that the Property shall be used for low -density residential development. Based upon current residential property sales of like dwellings in the Cove market area the estimated value of the Property is $165,000, given the uses permitted by the Agency's Redevelopment Plan. Estimated Value of the Interest to be Conveyed, Determined at the Use With the Conditions, Covenants, and Development Costs Required by the Agreement The Agreement provides that the Property will be sold at the current market value of $165,000, which reflects the fair market value. 004 G:\WPDOCS\Sum Rpt 52-965 carranza.doc Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist in the Elimination of Blight The Agreement does not eliminate blight in that it does not facilitate a transaction that remedies blight. Instead the Agreement expands that Agency's affordable housing efforts and increases the community's supply of affordable housing. Prior to the sale, the Agency substantially rehabilitated the Property extending the Property's economic life while improving its appearance. Thus, the transaction will insure the continued affordability of a substantially rehabilitated single-family dwelling to a low income household. 0 () 5 G:\WPDOCS\Sum Rpt 52-965 carranza.doc COUNCIL/RDA MEETING DATE: November 16, 2004 A Joint Public Hearing Between the City Council and Redevelopment Agency to Approve an Agreement to Sell Real Property Located at 51-805 Avenida Cortez By and Between the La Quinta Redevelopment Agency and Robert and Delilah Gaeta RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: 3 Approve the sale of 51-805 Avenida Cortez to maintain an affordable housing unit in Project Area No. 1 for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale. FISCAL IMPLICATIONS: The Agreement would result in the Agency receiving approximately $68,500 from sale proceeds. The Agency would also provide an $88,550 silent second trust deed loan to insure that the dwelling is affordable to a very low-income household for 45 years. BACKGROUND AND OVERVIEW: In August, 1995, the Agency acquired 50 single family homes located in the Cove to secure these units from bankruptcy proceedings filed by the then owner, Coachella Valley Land. Prior to the bankruptcy, the Agency invested $1.0 million to maintain the dwellings as very low-income rental units. Since then, the Agency has substantially rehabilitated these dwellings to correct deficiencies and improve their appearance. These costs have been funded from rental income. In February 1998, the Agency directed staff to sell two (2) units per year first to qualified tenants, and secondly, to other eligible very low-income households. The proposed sale is the fifteenth (15th) unit to be sold; ten (10) of these units were sold to existing tenants and five (5) to non -tenant households. The proposed purchaser is an existing tenant who expressed an interest in purchasing the property, took the required actions to qualify for a first trust deed loan, and qualifies in the very low-income category. The sale transaction would be structured as other Agency affordable housing projects, wherein the existing Agency -funded silent second trust deed would cover the difference between the market sales price and an affordable first trust deed mortgage. If this sale is authorized, the unit will be sold for the market value of $165,000, with the buyer funding a 3% down payment and a private lender originating a $71,500 first trust deed mortgage (the maximum loan the homebuyer can obtain). The Agency would convert $88,550 of its equity in the property into a silent second trust deed loan. This unit has been substantially rehabilitated and therefore, can be counted toward the Agency's inclusionary housing requirement. FINDINGS AND ALTERNATIVES: Alternatives available to the Redevelopment Agency include: 1. Approve an agreement to sell real property located at 51-805 Avenida Cortez to Robert and Delilah Gaeta for a purchase price of $165,000 and authorize the Executive Director to execute the necessary documents to complete the property sale; or 2. Do not approve an Agreement to sell real property located at 51-805 Avenida Cortez to Robert and Delilah Gaeta for a purchase price of $165,000 and do not authorize the Executive Director to execute the necessary documents to complete the property sale; or 3. Provide staff with an alternative direction. Respectfully submitted /, Wag= z� Oscar Orci, Interi Community Development Director Approved for submission by: "Thomas P. Genovese, Executive Director Attachment: 1. Summary Report 9 SUMMARY REPORT FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND ROBERT AND DELILAH GAETA November 16, 2004 INTRODUCTION This document is the Summary Report ("Report") for the proposed Sale Agreement ("Agreement") between the La Quinta Redevelopment Agency ("Agency") and Robert and Delilah Gaeta ("Buyers"). The purpose of Agreement is to facilitate the sale by the Agency of a single-family dwelling to the Buyers. This Report has been prepared pursuant to Section 33433 of the California Health and Safety Code ("California Community Redevelopment Law") and presents the following: • A summary of the proposed transaction. • The cost of the sale to the Agency. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the Agency's Redevelopment Plan. • The estimated value to be conveyed, determined by the use and with the conditions, covenants, and development costs required by the Agreement. • An explanation of why the sale, pursuant to the Agreement, will assist in the elimination of blight. SUBJECT PROPERTY The home is a vacant 3-bedroom 2-bath single-family dwelling located at 51-805 Avenida Cortez within La Quinta Redevelopment Project Area No. 1 ("Property"). The Agency acquired the Property in 1995 to preserve single-family homes that were affordable to very -low income Section 8 households. These homes have been rented to said households since 1995. The Buyers are the current tenants of this home who expressed interest in purchasing it and subsequently qualified for a .first trust deed loan. The Agency then elected to enter into the Agreement to facilitate this sale. 003 THE TRANSACTIONS PROVIDED FOR BY THE AGREEMENT The Agreement will accommodate the sale of the Property to the Buyers, who will continue to occupy the dwelling. The sales price of $165,000, which represents the fair market value, will be funded through a combination of the Buyers' down payment of $4,950, a first trust deed mortgage of $71,500, and the Agency's equity of $88,550 that will be converted into a silent second trust deed loan. This second trust deed loan will include covenants to insure that the Property will remain affordable to very low income -households for 45 years. History of Property This Property is part of the Agency Rental Property Purchase Program. In May 1998, the Agency offered these properties first to the existing tenants for purchase and secondly to other qualified very low income households. The Buyers are the current tenants, who expressed an interest in purchasing the unit, and were recently approved by Total Financial Group for a mortgage up to the amount of $71,500. The Buyers qualify as a very low income household. The Cost of the Sale to the Agency To date the Agency has invested $127,750 in the Property through a combination of the initial purchase cost ($86,500) and expenses related to rehabilitating the dwelling ($41,250). Per the Agreement the Agency will sell the Property for $165,000; of this amount the Agency will receive $68,500 in sale proceeds and retain a silent second trust deed of $88,550 in order to insure that the annual costs are affordable to very low income households. Estimated Value of the Interest to be Conveyed, Determined at the Highest and Best Uses Permitted by the Agency's Redevelopment Plan The Redevelopment Plan for La Quinta Redevelopment Project No. 1 provides that the Property shall be used for low -density residential development. Based upon current residential property sales of like dwellings in the Cove market area the estimated value of the Property is $165,000, given the uses permitted by the Agency's Redevelopment Plan. Estimated Value of the Interest to be Conveyed, Determined at the Use With the Conditions, Covenants, and Development Costs Required by the Agreement The Agreement provides that the Property will be sold at the current market value of $165,000, which reflects the fair market value. Gil G:\WPD0CS\SumRpt51-805 cortez.doc Explanation of Why the Sale of the Property Pursuant to the Agreement will Assist in the Elimination of Blight The Agreement does not eliminate blight in that it does not facilitate a transaction that remedies blight. Instead the Agreement expands that Agency's affordable housing efforts and increases the community's supply of affordable housing. Prior to the sale, the Agency substantially rehabilitated the Property extending the Property's economic life while improving its appearance. Thus, the transaction will insure the continued affordability of a substantially rehabilitated single-family dwelling to a very low income household. G C) J G:\WPDOCS\SumRpt51-805 cortez.doc