2006 05 16 RDAeaf q4ad4a
Redevelopment 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, MAY 16, 2006 — 2:00 PM
Beginning Resolution No. RA 2006-007
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Kirk, Sniff, and Chairman Osborne
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUG EVANS,
PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL
TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL
PROPERTY LOCATED AT 78-990 MILES AVENUE (APN 604-032-22). PROPERTY
OWNER/NEGOTIATOR: SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORP.
Redevelopment Agency Agenda 1 May 16, 2006
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF
MILES AVENUE AND WASHINGTON STREET. PROPERTY OWNER/NEGOTIATOR:
CP DEVELOPMENT LA QUINTA, LLC., RICHARD OLIPHANT
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 MAY 2, 2006.
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 MAY 16, 2006.
2. RECEIVE AND FILE TREASURER'S REPORT DATED MARCH 31, 2006.
3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED MARCH 31,
2006.
4. ACCEPTANCE OF THE ARNOLD PALMER CLASSIC COURSE AT SILVERROCK
RESORT, PROJECT NO. 2002-07C,
002
Redevelopment Agency Agenda 2 May 16, 2006
5. APPROVAL OF PLANS, SPECIFICATIONS AND ENGINEER'S ESTIMATE AND
AUTHORIZATION TO ADVERTISE FOR BID FOR THE VISTA DUNES COURTYARD
HOMES, PROJECT 2005-12.
6. APPROVAL OF A PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY AND LORENZO P. AND SANDRA V. PEREYRA TO
PURCHASE A SINGLE FAMILY RESIDENCE LOCATED AT 46-178 DUNE PALMS
ROAD (APN: 649-040-012), AND THE APPROPRIATION OF $486,500 FROM THE
2004 LOW AND MODERATE HOUSING BOND FUND FOR ACQUISITION,
RELOCATION AND PHASE 1 ENVIRONMENTAL SURVEY COSTS.
7. APPROVAL OF A RELOCATION PLAN FOR THE DUNE PALMS ROAD PROJECT.
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
1 . JOINT PUBLIC HEARING WITH THE LA QUINTA CITY COUNCIL TO CONSIDER THE
SALE OF REAL PROPERTY LOCATED AT 53-205 AVENIDA NAVARRO BY AND
BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND KIM LOUTSENHIZER.
A. MINUTE ORDER ACTION
2. JOINT PUBLIC. HEARING WITH THE LA QUINTA CITY COUNCIL TO CONSIDER THE
SALE OF REAL PROPERTY LOCATED AT 53-195 AVENIDA CARRANZA BY AND
BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND CORINA GOMEZ.
A. MINUTE ORDER ACTION
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on June
6, 2006 commencing with closed session at 2:00 PM and open session at 3:00 PM in the
City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
003
Redevelopment Agency Agenda 3 May 16, 2006
DECLARATION OF POSTING
1, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of May 16, 2006, 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 May 12, 2006
DATED: May 12, 2006
JUNE S. GREEK, MMC, City Clerk
City of La Quinta, California
, , i3�4
Redevelopment Agency Agenda 4 May 16, 2006
COUN
ITEM TITLE:
T ft
4t!t 4 Sepa�w
AGENDA CATEGORY:
A MEETING DATE: May 16, 2006
CONSENT CALENDAR
STUDY SESSION
Demand Register Dated May 16, 2006 PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated May 02, 2006 of which $45,833.01
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
ceihf 4 Sep
COUNCIL/RDA MEETING DATE: May 16, 2006
ITEM TITLE:
Receive and File Transmittal of Treasurer's Report
as of March 31, 2006
RECOMMENDATION:
It is recommended the La Quinta Redevelopment Agency:
AGENDA CATEGORY:
BUSINESS SESSION: ..L
CONSENT CALENDAR: C
STUDY SESSION:
PUBLIC HEARING:
Receive and File the Treasurer's Report as of March 31, 2006.
PLEASE SEE BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
oos
T a
4h
of 4 44"
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE: May 16, 2006 CONSENT CALENDAR:
ITEM TITLE: STUDY SESSION:
Receive and File Transmittal of Revenue and Expenditure PUBLIC HEARING:
Report for March 31, 2006
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
Transmittal of the March 31, 2006 State of Revenue and Expenditures for the La Quinta
Redevelopment Agency.
Respectfully submitted,
X6.�Fa-lconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments 1: Revenue and Expenditures Report, March 31, 2006
007
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA N0,1:
LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Transfer In
TOTAL LOW/MOD TAX
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
8,567,604.00
4,838,920.10
3,728,683.90
360,000.00
183,320.73
176,679.27
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
276, 000.00
180, 343.50
95,656.50
480,000.00
510,901.10
(30,901.10)
0.00
0.00
0.00
50,000.00
55,531.67
(5,531.67)
30,000.00
32,892.19
(2,892.19)
1,000,000.00
1,054,455.07
(54,455.07)
0.00
0.00
0.00
10,763,604.00
6,856,364.36
3,907,239.64
DEBT SERVICE FUND:
Tax Increment
34,270,416.00
19,244,180.08
15,026,235.92
Allocated Interest
300,000.00
472,574.95
(172,574.95)
Non Allocated Interest
0.00
0.00
0.00
Interst - County Loan
0.00
0.00
0.00
Interest Advance Proceeds
0.00
0.00
0.00
Transfers In
3,945,802.00
3,465 227.35
480,574.65
TOTAL DEBT SERVICE
38,516,218.00
23,181,982.38
15,334,235.62
CAPITAL IMPROVEMENT FUND - NON-TAXABLE
Pooled Cash Allocated Interest
150,000.00
122,459.56
27,540.44
Non Allocated Interest
1,000,000.00
699,072.53
300,927.47
Litigation Settlement Revenue
0.00
0.00
0.00
Loan Proceeds
0.00
0.00
0.00
Rental Income
0.00
0.00
0.00
Transfers In
913 378.00
276 867.94
636,510.06
TOTAL CAPITAL IMPROVEMENT
2,063,378.00
1,098,400.03
964,977.97
CAPITAL IMPROVEMENT FUND - TAXABLE
Pooled Cash Allocated Interest
0.00
0.00
0.00
Non Allocated Interest
0.00
0.00
0.00
Litigation Settlement Revenue
0.00
0.00
0.00
Bond proceeds
0.00
0.00
0.00
Rental Income
0.00
0.00
0.00
Transfers In
0.00
0.00
0.00
TOTAL CAPITAL IMPROVEMENT
0.00
0.00
0.00
2
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
07/01/2005 - 03/31/06 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
.00
LOW/MODERATE TAX FUND:
PERSONNEL
4,900.00
4,988.33
0.00
(88.33)
SERVICES
265,405.00
174,556.43
0.00
90,848.57
BUILDING HORIZONS
125,000.00
75,000.00
0.00
50,000.00
LQ RENTAL PROGRAM
332,000.00
204,793.13
0.00
127,206.87
LQ HOUSING PROGRAM
320,000.00
748.00
0.00
319,252.00
LOWMOD VILLAGE APARTMENTS
400,000.00
400,000.00
0.00
0.00
2nd TRUST DEED PROGRAM
3,298,340.00
40,000.00
0.00
3.258,340.00
LQRP - REHABILITATION
0.00
0.00
0.00
0.00
APT REHABILITATION
136,000.00
130,878.88
0.00
5,121.12
FORECLOSURE
150,000.00
0.00
0.00
150,000.00
REIMBURSEMENT TO GEN FUND
679,574.00
509,680.53
0.00
169,893.47
TRANSFERS OUT
3,945,802.00
3,465,227.35
0.00
480,574.65
TOTAL LOW/MOD TAX
9,657,021.00
5,005,872.65
0.00
4,651,148.35
DEBT SERVICE FUND:
SERVICES
537,800.00
297,050.58
0.00
240,749.42
BOND PRINCIPAL
2,500,000.00
2,500,000.00
0.00
0.00
BOND INTEREST
7,805,905.00
7,805,905.26
0.00
(0.26)
INTEREST CITY ADVANCE
1,124,738.00
869,738.18
0.00
254,999.82
PASS THROUGH PAYMENTS
16,610,336.00
9,352,710.40
0.00
7,257,625.60
ERAF SHIFT
2,903,657.00
0.00
0.00
2,903,657.00
TRANSFERS OUT
4,374,737.00
3,738,227.35
0.00
636,509.65
TOTAL DEBT SERVICE
35,857,17 .00
24,563,631.77
0.00
11,293,541.23
CAPITAL IMPROVEMENT FUND:
PERSONNEL
4,900.00
4,988.33
0.00
(88.33)
SERVICES
313,862.00
160,314.59
0.00
153,547.41
LAND ACQUISITION
0.00
0.00
0.00
ASSESSMENT DISTRICT
0.00
0.00
0.00
0.00
ADVERTISING -ECONOMIC DEV
0.00
2,000.00
0.00
(2,000.00)
ECONOMIC DEVELOPMENT
48,500.00
0.00
0.00
48,500.00
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
319,515.00
239,636.24
0.00
79,878.76
TRANSFERS OUT
23,578,108.00
5,458,868.13
0.00
18,119,239.87
TOTAL CAPITAL IMPROVEMENT
24,2 ,88 .00_
5,865,807.29
0.00
18,399,077.71
CAPITAL IMPROVEMENT FUND/TAXABLE BOND
BOND ISSUANCE COSTS
0.00
0.00
0.00
0.00
TRANSFERS OUT
(4,594.00)
0.00
0.00
(4,594.00)
TOTAL CAPITAL IMPROVEMENT
(4,594.00)
0.00
0.00
(4,594.00)
3
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 LOW/MOD TAX
2004 LOW/MODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
Transfer In
TOTAL LOW/MOD BOND
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
4,707,594.00
2,692,397.69
2,015,196.31
275, 300.00
202,188.73
73,111.27
0.00
0.00
0.00
0.00
0.00
0.00
15,000.00
15,320.18
(320.18)
112,500.00
250,301.85
(137,801.85)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5,110,394.00
3,160,208.45
1,950,185.55
0.00
0.00
0.00
0.00
0.00
0.00
1,418,400.00
1,593,995.84
(175,595.84)
0.00
0.00
0.00
1,418,400.00
1,593,995.84
(175,595.84)
DEBT SERVICE FUND:
Tax Increment
18,830,375.00
10,695,317.80
8,135,057.20
Allocated Interest
275,000.00
349,266.18
(74,266,18)
Non Allocated Interest
0.00
0.00
0.00
Interest Advance Proceeds
0.00
0.00
0.00
Transfer In
7,998,654.00
7,998,653.78
0.22
TOTAL DEBT SERVICE
27,104,029.00
19,043,237.76
8,060,791.24
CAPITAL IMPROVEMENT FUND:
Allocated Interest
80,000.00
70,600.07
9,399.93
Non Allocated Interest
0.00
0.00
0.00
Developer Agreement
7,824,584.00
7,824,583.57
0.43
Transfers In
0.00
0.00
0.00
TOTAL CAPITAL IMPROVEMENT
7,904,584.00
7,895,183.64
9,460.36
)10
4
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO.2:
0710l/2005 - 03/31/06 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOW/MODERATE BOND FUND
0.00
0.00
0.00
0.00
2nd TRUST DEEDS
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 LOW/MOD BOND
0.00
0.00
0.00
0.00
LOW/MODERATE TAX FUND:
PERSONNEL
2,900.00
3,018.71
0.00
(118.71)
SERVICES
280,628.00
193,069.43
0.00
87,558.57
2ND TRUST DEEDS
852,693.00
0.00
0.00
852,693.00
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
710.00
0.00
1,422,493.00
WASH/MILES PROJECT
0.00
0.00
0.00
0.00
VISTA DUNES MOBILE HOME PARK
147,307.00
111,935.91
0.00
35,371.09
LOW MOD HOUSING PROJECT
105,015.00
0.00
0.00
105,015.00
47TH/ADAMS PROJECT
776,239.00
0.00
0.00
776,239.00
FORECLOSURE ACQUISITION
150,000.00
0.00
0.00
150,000.00
REIMBURSEMENT TO GEN FUND
350,708.00
263,030.95
0.00
87,677.05
TRANSFERS OUT
1,846,754.00
1,706,753.78
0.00
140,000.22
TOTAL LOW/MOD TAX
8,455,447.00
2,278,518.78
0.00
6,176,928.22
2004 LOW/MODERATE BOND FUND
HOUSING PROGRAMS
51,021,866.00
48.00
0.00 51,021,816.00
LAND
3,000,000.00
0.00
0.00 3,000,000.00
TRANSFERS OUT
3,361,986.00
1,112,517.44
0.00 2,249,468.56
TOTAL LOW/MOD BOND
57,383,85 .00
1,112,565.44
0.00 56,271,286.56
DEBT SERVICE FUND:
SERVICES
195,970.00
152,363.88
0.00
43,606.12
BOND PRINCIPAL
200,000.00
100,000.00
0.00
100,000.00
BOND INTEREST
319,168.00
319,167.50
0.00
0.50
INTEREST CITY ADVANCE
1,205,104.00
955,104.19
0.00
249,999.81
PASS THROUGH PAYMENTS
16,020,307.00
8,802,077.76
0.00
7,218,229.24
TRANSFERS OUT
1,706,754.00
1,706,753.78
0.00
0.22
TOTAL DEBT SERVICE
19, 7,303.00
12,035,467.11
0.00
7,611,835.89
CAPITAL IMPROVEMENT FUND:
PERSONNEL
2,900.00
3,017.13
0.00
(117.13)
SERVICES
195,162.00
51,478.41
0.00
143,683.59
ADVERTISING -ECONOMIC DEV
0.00
0.00
0.00
0.00
ECONOMIC DEVELOPMENT ACTIVITY
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUND
23,903.00
17,927.28
0.00
5,975.72
TRANSFERS OUT
6,776,933.00
6,468,347.27
0.00
308,585.73
TOTAL CAPITAL IMPROVEMENT
6,998,898.00
6,540,770.09
0.00
458,127.91
5
COUNCIURDA MEETING DATE: May 16, 2006
ITEM TITLE: Acceptance of the Arnold Palmer Classic
Course at SilverRock Resort, Project No. 2002-07C
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 4
STUDY SESSION:
PUBLIC HEARING:
Accept the Arnold Palmer Classic Course at SilverRock Resort Golf Course No. 1,
Project No. 2002-07C as complete; authorize the City Clerk to file a Notice of
Completion with the Office of the County Recorder; authorize staff to release any
remaining retention to Weitz Golf, Inc. thirty-five (35) days after the Notice of
Completion is recorded.
FISCAL IMPLICATIONS:
The following is a budget summary:
Original Contract Amount
Golf Course No. 1
SilverRock Phase 1 Amenities
Total Original Contract Amount
Contract Change Order Nos. 1-71
Revised Total Contract
Amount paid to date
Remaining Fiscal Commitment
$8,187,850.00
$3,133,154.00
$1 1,321,004.00
$2,310,599.62
$13, 631, 603.62
$13,532,603.62
$ 99,000.00
Amenities in support of Phase 1 of SilverRock Resort constructed by Weitz Golf are as
follows:
Access Roads
Village Lakes
Comfort Station Utilities
Site Electrical Service
Canal Jacking Operations
Grand Total:
$20,480.00
$ 2, 300, 000.00
$198,924.00
$550,000.00
$63,750.00
$ 3,133,154.00
S:\CityMgr\STAFF REPORTS ONLY\C4 Proj 2002-07C.doc
Seventy-one change orders were necessary to complete the golf course construction in
order to be opened in early 2005. A detailed summary of those change orders is
included as Attachment 1. The change order cost by category is as follows:
Accelerated Schedule Cost
$421,472.24
BOR/CVWD Permit Delays
$413,966.54
Design Modifications
$366,135.12
Bob Hope Chrysler Classic Requests
$287,001 .53
Work Moved to Weitz Contract
$225,948.79
Weather Related Repair Work
$208,323.10
Verizon Delay Claims to Date
$172,315.32
Phone Service to Site
$131,814.07
Landscape Plan Changes
$83,622.81
Total:
$2,310,599.52
The final retention payment of $99,000 was withheld pending the completion of as -
built plans for the native areas, replacement of 12 warrantee trees, and repair of a
water main leak on hole #7. These items were completed as of May 5, 2006.
On November 10, 2005, the City filed a claim against Verizon in the amount of at least
$641,001.57 for delays to Wood Bros, Weitz Golf, and Weitz's subcontractors caused
by conflicts with Verizon's underground facilities. A claim by the golf course
contractor, Weitz Golf, was filed on this project on April 11, 2006 in the amount of
$1,312,156.51. Staff will continue to apprise the Agency of progress to resolve both
claims.
BACKGROUND AND OVERVIEW:
This project consisted of the construction of the Arnold Palmer designed 18 hole
championship golf course known as the Arnold Palmer Classic Course at SilverRock, as
well as numerous amenities in support of the first phase of the development of
SilverRock Resort. The golf course construction consisted of approximately 140,000
square feet of greens, 335,000 square feet of tees, 213,000 square feet of sand
bunkers, 50 acres of fairways, 75 acres of rough, 18 acres of lakes, 25 acres of native
landscape, a 12 acre driving range, and 30,000 linear feet of golf cart path.
The work included, but was not limited to, dust control, clearing and grubbing, rough
and finish shaping and any other specialty shaping requested by Palmer Design. The
greens were constructed to the United States Golf Association (USGA) specifications.
The amenities also included the purchase and installation of the golf course drainage,
landscape and native irrigation, lake equalization lines, soil amendments, and all of the
landscape plant material for the golf course and native areas. The contractor, Weitz
Golf, was responsible for installing irrigation main lines under the All American Canal as
well as constructing the entry feature and village lake systems, and the golf course
irrigation pump station. The contractor purchased and installed the potable water,
sewer, and power lines for the two comfort stations located on the golf course. The
final cost for Weitz to construct non -golf amenities and infrastructure in support of Phase
1 of the SilverRock Resort, such as the village lake system, access roads, water, sewer,
and power lines, for the site was approximately $3.1 million excluding contract change
S:\CityMgr\STAFF REPORTS ONLY\C4 Proj 2002-07C.doc
orders.
Outstanding Claims
On November 10, 2005, the City filed a claim against Verizon in the amount of at least
$641,001.57 for delays caused to Weitz Golf and its subcontractors due to Verizon's
inability to relocate its facilities in a timely manner. Staff will inform the Agency of the
resolution of this claim at a future meeting.
A claim for $1,312,156.51 was filed by Weitz Golf on April 11, 2006 for acceleration
and other costs associated with meeting the grassing schedule for the project. Among
other things, staff believes these costs were in large part covered by the contract
change orders previously approved for the project. Staff will continue to negotiate with
Weitz Golf on their claim and report back as to the progress at a future Agency meeting.
Staff has reviewed the golf course construction and confirmed the project complies
with the contract terms, conditions, plans and specifications. As of May 5, 2006, the
project work, including the added work and warranty items, was considered 100%
complete and is recommended for acceptance by the Agency. Prior to filing the Notice
of Completion, staff must receive authorization from the Agency to accept this project
as complete and authorize the City Clerk to file a Notice of Completion. Thirty-five
(35) days after the Notice of Completion is recorded, staff will release any remaining
retention.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency include:
1. Accept the Arnold Palmer Classic Course at SilverRock Resort Golf Course No.
1, Project No. 2002-07C as complete; authorize the City Clerk to file a Notice of
Completion with the Office of the County Recorder; authorize staff to release
any remaining retention to Weitz Golf, Inc. thirty-five (35) days after the Notice
of Completion is recorded; or
2. Do not Accept the Arnold Palmer Classic Course at SilverRock Resort Golf
Course No. 1, Project No. 2002-07C as complete; authorize the City Clerk to
file a Notice of Completion with the Office of the County Recorder; authorize
staff to release any remaining retention to Weitz Golf, Inc. thirty-five (35) days
after the Notice of Completion is recorded; or
3. Provide staff with alternative direction.
014
S:\CityMgr\STAFF REPORTS ONLY\C4 Proj 2002-07C.doc
Respectfully submitted,
Ti othy R. J nass n P.E.
ublic Works Dire /City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment : 1. Contract Change Order Summary
015
S:\CityMgr\STAFF REPORTS ONLY\C4 Proj 2002-07C.doc
COUNCIL/RDA MEETING DATE. May 16, 2006
ITEM TITLE:
Approval of Plans, Specifications and
Engineer's Estimate and Authorization
to Advertise for Bid for the Vista Dunes
Courtyard Homes, Project 2005-12
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 6-
STUDY SESSION:
PUBLIC HEARING:
Approve the Plans, Specifications, and Engineer's Estimate (PS&E) of probable
construction costs and authorize staff to advertise for bids for the Vista Dunes Courtyard
Homes, Project No. 2005-12.
FISCAL IMPLICATIONS:
Based upon the Engineer's estimate of probable construction costs in the amount of
$18,000,000 the following represents the anticipated project budget:
Activity Budget
Construction $1710001000
Contingency @ 6% $110001000
TOTAL: $181000, 000
Funding for the project will come from the 2004 Housing Bond proceeds.
CHARTER CITY IMPLICATIONS:
The project is being bid as a non -prevailing wage job thereby decreasing the costs of
construction to the Agency.
BACKGROUND AND OVERVIEW:
In December 2003 the Agency Board authorized staff to purchase the Vista Dunes Mobile
Home Park, and refine the site and building plans. At that meeting, the Board also
reviewed a preliminary site and building construction budget that anticipated $13.0 million
hard construction costs, based upon using manufactured homes. The Board also directed
staff to incorporate additional building and site enhancements. Staff presented these
enhancements in August 2004; they included the following:
• Increasing the home size/changing construction approach. The total home square
footage for all units increase by 44 percent from 71,000 square feet to the current 017
S:\CITYMGR\STAFF REPORTS ONLY\C-1 PSE VISTA DUNES.DOC
103,000 square feet. In order to incorporate other design features, the construction
method was changed from manufactured to site -built units. This allowed for
building improvements that would be compatible with the desert environment.
• Parking improvements. The parking spaces that serve each unit were housed in
carports versus open parking stalls.
• Solar electricity generation. Incorporate solar energy panels so that each dwelling
would benefit from reduced electric energy costs.
• Incorporate better building materials. Improve the exterior and interior finish
materials so that the dwellings would be more durable and on -going maintenance
costs would be reduced.
The Engineer's Estimate anticipates that site and building improvement costs will be $18.0
million or a 38 percent increase. This is due to the above improvements and the fact that
labor and material costs have increase by at least 30 percent since December 2003.
The PS&E are now substantially complete and will be available in the Building and
Safety Department for review.
Assuming the Agency approves the authorization to receive bids for the
aforementioned buildings on May 16, 2006, the following represents the anticipated
project schedule:
Approve PS&E and authorize to receive bids May 16, 2006
Bid Opening June 21, 2006
Award Construction Contract July 5, 2006
Construction Period July 2006-July 2007
Accept Improvements August 2007
FINDINGS AND ALTERNATIVES:
Alternatives available to the Agency Board include:
1. Approve the Plans, Specifications, and Engineer's Estimate (PS&E) of probable
construction costs and authorize staff to advertise for bids for the Vista Dunes
Courtyard Homes Project No. 2005-12; or
2. Do not approve the Plans, Specifications, and Engineer's Estimate (PS&E) and
do not authorize staff to advertise for bids for the aforementioned project; or
3. Provide staff with alternative direction.
Pq
C-1 PSE VISTA DUNES.DOC
Respectfully submitted,
90-
Tom Hartung, Director of Building and Safety
Approved for submission by:
r14 .' . /' � �zy- , - - ,
Thomas P. Genovese, Executive Director
3
C-1 PSE VISTA DUNES.DOC
COUNCIL/RDA MEETING DATE: May 16, 2005
ITEM TITLE: Approval of a Purchase and Sale Agreement
by and Between the Redevelopment Agency and
Lorenzo P. and Sandra V. Pereyra to Purchase a Single
Family Residence Located at 46-178 Dune Palms Road
(APN: 649-040-012), and the Appropriation of
$486,500 from the 2004 Low and Moderate Housing
Bond Fund for Acquisition, Relocation, and Phase 1
Environmental Survev Costs
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the Agreement for Purchase and Sale and appropriate $486,500 from the
2004 Low and Moderate Income Housing Bond Fund to underwrite acquisition,
relocation, appraisal, and phase 1 environmental investigation.
FISCAL IMPLICATIONS:
Purchasing this property will result in the expenditure of up to $486,500 of 2004 Low
and Moderate Income Housing Bond Fund proceeds. As the Agency endeavors to
purchase other properties located southeast of the intersection of Westward Ho Drive
and Dune Palms Road, up to $2,800,000 of additional housing fund expenditures may
be required to acquire these other properties and relocate their occupants.
BACKGROUND AND OVERVIEW:
The Agency Board directed the Executive Director to transmit a letter to property
owners who have holdings southeast of the Westward Ho Drive and Dune Palms Road
intersection. The Agency Board indicated an interest in purchasing these properties so
that:
• The City may widen Dune Palms Road from the CVWD Stormwater Channel
north to Westward Ho. The proposed Dune Palms Road alignment will result in
the roadway being adjacent to front entries of the existing homes, requiring a
full versus a partial takes to accommodate street widening activities.
C►20
• The Agency may enlarge the site it owns immediately southeast of the
Westward Ho/Dune Palms Road intersection to accommodate CVWD well site
parcel size requirements (this property is scheduled to be improved and
transferred to CVWD to satisfy some of the SilverRock domestic well
requirements).
The Agency may assemble parcels for affordable housing development.
A letter was transmitted to the owners and RSG was subsequently contacted by all of
the owners, and four of six expressed interest in entering into property acquisition
negotiations with the Agency. Three properties entail single-family residences and the
fourth is a vacant parcel. The total land area encompasses 5.12 acres.
The attached Purchase and Sale Agreement is the second of two that staff is
requesting the Agency Board consider. Attachment 1 identifies the subject property.
This Agreement involves a 7,800 square foot parcel that is developed with a single-
family residence; this property fronts Dune Palms Road. The property owners, Mr.
Lorenzo P. and Sandra V. Pereyra, have agreed to sell their property at the appraised
value ($390,000) and require up to $51,000 in relocation assistance. The relocation
assistance will facilitate their move to a home they wish to purchase in Palm Desert.
When acquired, the existing improvements will be demolished, the Dune Palms Road
frontage will be dedicated to the City to facilitate Dune Palms Road widening, and the
remaining property will be combined with the adjoining parcels as they are acquired.
If the Agreement is approved by the Agency Board, an environmental consultant will
complete a hazardous materials review to determine if there is soils contamination.
An initial review indicated that there was none. If the survey reports problems, then
the means to correct these problems will be identified and implemented before closing
escrow. If the property is clean, then staff will proceed to close escrow.
Staff is requesting the appropriation of an additional $45,200 to commission additional
real property appraisals and Phase 1 environmental assessments. Up to $15,200 of
appraisal costs may be incurred; with the pending Hartnett and Pereyra sales, adjoining
Dune Palms Road property owners have expressed interest in selling their properties to
the Agency. Up to $30,000 of phase 1 environmental assessment costs may be
incurred related to conducting environmental surveys of the Dune Palms Road
properties, and the Washington Street and Highway 1 1 1 properties the Agency has
under consideration.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1 . Approve the Agreement for Purchase and Sale and appropriate $486,500 from
the 2004 Low and Moderate -Income Housing Bond Fund to underwrite
acquisition, relocation, a hazardous materials survey and closing costs; or
GPI
2. Do not Approve the Agreement for Purchase and Sale and appropriate
$486,500 from the 2004 Low and Moderate -Income Housing Bond Fund to
underwrite acquisition, relocation, a hazardous materials survey and closing
costs; or
3. Provide staff with alternative direction.
Respectfully submitted,
kozVLvi.�
Douglas R./Evans
Community Development Director
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1 . Vicinity Map
2. Purchase and Sale Agreement
21)
ATTACHMENT 1
ATTACHMENT #2
AGREEMENT FOR PURCHASE AND SALE
AND ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS
("Agreement") is made and entered into as of , 2006 ("Effective Date") by and
between LORENZO PEREYRA AND SANDRA PEREYRA (collectively, "Seller") and the LA
QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic ("Buyer").
RECITALS:
A. Seller is the owner of that certain real property located in the City of La Quinta,
County of Riverside, State of California, commonly known as 46178 Dune Palms Road (APN
649-040-012), more particularly described in the legal description attached hereto as Exhibit "A"
(the "Real Property") improved with a residential dwelling and a swimming pool, spa, and a
Cabana with a separate bath (the "Improvements").
B. Buyer desires to purchase the Property (as that term is defined below) from Seller,
and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein.
C. On February 27, 2006, Buyer issued an offer letter to Seller indicating Buyer's
intention to acquire the Property for the public purpose of developing the Real Property as an
affordable housing project. This action will cause Seller to become a displaced person pursuant
to the California Relocation Assistance Act (Cal. Govt. Code § 7260 et seq.) and Buyer is
complying with the provisions of the Relocation Assistance Act.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants
herein contained, the parties hereto agree as follows:
1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement,
and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby
agrees to purchase from Seller the Real Property and Seller hereby agrees to sell and Buyer
hereby agrees to buy the following:
1.1 Improvements. Seller's interest in and to the Improvements and all tenements,
hereditaments and appurtenances thereto, subject to the Permitted Exceptions (as that term is
defined in Section 8.1);
1.2 Fixtures and Personal Property. Any and all fixtures and fittings that are attached
to the Real Property and Improvements, all existing electrical, mechanical, lighting, plumbing
and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in
appliances, window and door screens, awnings, shutters, window coverings, attached floor
coverings, television antennas, private integrated telephone systems, air coolers/conditioners,
pool/spa equipment, garage door openers/remote controls, mailbox, in -ground landscaping,
2156/015610-0090
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0'' 4
trees/shrubs, water softeners, water purifiers, and security systems/alarms (collectively, the
"Fixtures and Personal Property"). However, Buyer and Seller agree that Seller may remove the
following items in the home: (1) cabinets in the kitchen; (2) the refrigerator and microwave; (3)
a bookcase in the den and (4) several plants described as a palm tree and lemon tree, provided
that following removal of these plants, the Seller shall fill in the holes. Seller shall use due care
in removing these items and shall not cause waste to the Real Property in removing such items.
The Real Property, the Improvements, and the Personal Property are hereinafter
collectively referred to as the "Property."
2. PURCHASE PRICE.
2.1 Amount. The purchase price which Seller agrees to accept and Buyer agrees to
pay for the Property is the sum of THREE HUNDRED AND NINETY THOUSAND
DOLLARS ($390,000.00) ("Purchase Price"). The parties agree that with the exception of
relocation benefits referenced in the Section 3, below, the Purchase Price reflects the full
payment that Seller will receive from Buyer for the Property.
2.2 Payment of Purchase Price. On or before 5:00 p.m. on the business day preceding
the "Closing Date" (as that term is defined in Section 6.1) or such earlier time as required by
"Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 4.1) on the
Closing Date, Buyer shall deposit with Escrow Holder the Purchase Price.
3. RELOCATION ASSISTANCE. In addition to the Purchase Price, Buyer and Seller
agree that Seller shall be entitle to the relocation assistance pursuant to California Relocation
Assistance Act (Cal. Govt. Code Sections 7260 et seq.; Relocation Assistance and Real Property
Acquisition Guidelines, California Administrative Cove Title 25), in accordance with the terms
and amounts in the relocation benefit letter that will be issued by RSG. For reference purposes
only, it is anticipated that the Seller shall receive relocation assistance benefits in the amount of
$50,750, which benefits shall be paid pursuant to the eligibility letter and not through this
escrow.
4. ESCROW.
4.1 Opening of Escrow. Closing of the sale of the Property shall take place through
an escrow ("Escrow") to be established within three (3) business days after the execution of this
Agreement by the parties hereto, with Four Seasons Escrow, Inc. ("Escrow Holder") at its office
located at 47-350 Washington Avenue, Suite 101, La Quinta, California 92253. The opening of
the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy
of this Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify
Buyer and Seller in writing of the date of the Opening of Escrow.
4.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute
the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow
Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that
Escrow Holder customarily requires in real property escrows administered by it. In the event of
any conflict or inconsistency between Escrow Holder's standard instructions and the provisions
of this Agreement, the provisions of this Agreement shall supersede and be controlling. The
2156/015610-0090
703341.01 a05/10/06 -2-
parties additionally agree to the Escrow Holder's standard terms, a copy of which is attached
hereto as Exhibit E and to the additional supplemental instructions contained in Exhibit F.
5. TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by Old
Republic Title Company ("Title Company"), located at 25240 Hancock Avenue, Suite 330,
Murrieta, California 92562, describing the state of title of the Property together with copies of all
underlying documents and a map of plotted easements (collectively, the "Preliminary Title
Report"). Buyer may, at its sole cost and expense, obtain a current survey of the Property (the
"Survey"). Notwithstanding anything herein to the contrary, Seller shall be obligated to remove
all monetary encumbrances against the Property excluding non -delinquent real property taxes
(except as otherwise provided for in Section 9 below). Buyer shall notify Seller in writing of any
objections Buyer may have to title exceptions contained in the Preliminary Title Report or
matters shown on the Survey (if Buyer has obtained) no later than the date which is fifteen (15)
days after the later of (i) its receipt of the Preliminary Title Report or (ii) its receipt of the Survey
("Buyer's Objection Notice"). Buyer's approval or disapproval of the matters set forth in the
Preliminary Title Report (and the Survey, if applicable) may be granted or withheld in Buyer's
sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice
within said period shall constitute Buyer's approval of all exceptions to title shown on the
Preliminary Title Report and all matters shown on the Survey (if Buyer has obtained). Seller
shall have a period of five (5) days after receipt of Buyer's Objection Notice in which to deliver
written notice to Buyer ("Seller's Notice") of Seller's election to either (i) agree to remove the
objectionable items on the Preliminary Title Report or Survey prior to the Close of Escrow, or
(ii) decline to remove any such title exceptions or Survey matters and terminate Escrow and the
obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's
failure to provide Buyer with Seller's Notice within said period shall constitute Seller's election
to remove the objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its
election to terminate rather than remove the objectionable items on the Preliminary Title Report
or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days
after Buyer's receipt of Seller's Notice, to agree to accept the Property subject to the
objectionable items, in which event Seller's election to terminate shall be of no effect, and Buyer
shall take title at the Close of Escrow subject to such objectionable items without any adjustment
to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title
Report, other than those which Seller may agree to remove pursuant to this Section 4.2, shall be
deemed to have been approved by Buyer unless Seller is notified otherwise in writing.
Upon the issuance of any amendment or supplement to the Preliminary Title
Report which adds additional exceptions, including any survey exceptions, the foregoing right of
review and approval shall also apply to said amendment or supplement. The process set forth
above for Buyer's review and Seller's response shall apply to any review and response with
respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall
be extended for such period as is necessary to allow for that review and response process to be
completed.
6. CLOSE OF ESCROW.
6.1 Close of Escrow; Closing Date. Provided that all of the conditions of this
Agreement precedent to the "Close of Escrow" (as hereinafter defined) as set forth in Section 10
2156/015610-0090
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-3-
026
below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date,
the Closing of this transaction for the sale and purchase of the Property shall take place on or
before June 12, 2006 ("Outside Closing Date"). Notwithstanding the foregoing, if Buyer and
Seller agree to advance the Closing, and so long as all of "Buyer's Conditions to Closing" and all
of "Seller's Conditions to Closing" (as those terms are defined in Section 10) have been satisfied
(or waived by the appropriate party), Seller and Buyer may elect to authorize the Closing before
the Outside Closing Date. The terms "Close of Escrow", "Closing Date" and the "Closing" are
used herein to mean the time Seller's grant deed conveying fee title to the Property to Buyer is
recorded in the Official Records of the Office of the County Recorder of Riverside ("Official
Records"). If Escrow is not in a condition to close by the Outside Closing Date, either party not
then in default hereunder may, upon five (5) days advance written notice to the other party and
Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall
release either party then in default from liability for such default. If neither party so elects to
terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as
possible.
6.2 Recordation; Release of Funds and Documents.
6.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official
Records, the following documents in the order listed: (i) the grant deed (in the form attached
hereto as Exhibit `B") transferring title to the Property to Buyer ("Grant Deed"); and (ii) such
other and further documents as may be directed jointly by Buyer and Seller.
6.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less
any amount to pay property taxes and/or assessments allocable to Seller pursuant to Section 9,
and (ii) conformed copies of all recorded documents to both Buyer and Seller.
7. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.
7.1 Buyer's Obligations. Buyer agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with
Escrow Holder the following:
(a) the Purchase Price; and
(b) any and all additional funds, instruments or other documents required
from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in
order for the Escrow Holder to comply with the terms of this Agreement.
7.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business
day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with
Escrow Holder each of the following:
(a) the executed and acknowledged Grant Deed, subject only to the Permitted
Exceptions (defined hereafter);
(b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit")
executed and acknowledged by Seller in the form attached hereto as Exhibit "C";
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(c) a Bill of Sale (the "Bill of Sale") executed and acknowledged by Seller in
the form attached hereto as Exhibit "D"; and
(d) all other funds, items, and instruments required from Seller (executed and
acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to
comply with the provisions of this Agreement.
8. TITLE INSURANCE POLICY.
8.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a
CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as
insured, with liability in the amount of the Purchase Price, subject to the following (the
"Permitted Exceptions"):
(a) non -delinquent real property taxes, subject to Seller's obligations to pay
certain taxes pursuant to Section 9 below;
(b) covenants, conditions, restrictions and reservations of record that do not
interfere with the Buyer's proposed use of the Property, as determined in the sole and absolute
discretion of Buyer;
(c) easements or rights -of -way over the Property for public or quasi -public
utility or public street purposes;
(d) title exceptions approved or deemed approved by Buyer pursuant to
Section 4.2 above;
(e) any other exceptions approved by Buyer; and
(f) the standard printed conditions and exceptions contained in the CLTA
standard owner's policy of title insurance regularly issued by the Title Company.
8.2 Payment for Title Policy. Buyer shall be responsible for the charges for the Title
Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional
coverage or endorsements it requests. Buyer may, at its election and expense, request an ALTA
extended policy of title insurance. Buyer shall also pay for the Survey, if applicable.
9. REAL PROPERTY TAXES AND ASSESSMENTS. Upon Buyer's acquisition of fee
title to the Property, the Property will be exempt from the payment of property taxes due to
Buyer's status as a public agency. Seller shall be responsible for paying (through Escrow at
Closing) all real and personal property taxes and assessments which are of record as of the
Closing Date and/or have accrued against the Property prior to (and including) the Closing Date
(notwithstanding whether such taxes and/or assessments are due and payable as of the Closing
Date). Buyer hereby acknowledges and agrees that Buyer will provide the funds necessary to
completely payoff, at Closing, any amounts outstanding under the City of La Quinta Assessment
District 2000-1. Seller shall be responsible for paying for all real or personal property taxes or
assessments assessed against the Property after the Closing for any period prior to the Closing.
2156/015610-0090
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10. CONDITIONS PRECEDENT TO CLOSING.
10.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this
Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or
signed written waiver by Buyer of each and all of the following conditions precedent
(collectively, "Buyer's Conditions to Closing"):
(a) on the Closing Date, the Title Company shall be irrevocably committed to
issue the Title Policy pursuant to Section 8 above insuring fee title to the Property as being
vested in Buyer, subject only to the Permitted Exceptions;
(b) Escrow Holder holds all instruments and funds required for the Closing
and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this
Agreement;
(c) except as otherwise permitted by this Agreement, all representations and
warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though
made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled
by the Closing Date;
(d) Seller is not in material default of any term or condition of this
Agreement;
(e) as of the Closing Date, no judicial or administrative challenges have been
presented or filed against the Agency or the City of La Quinta's actions in connection with
developing the Real Property as an affordable housing project, including, without limitation, any
challenge to environmental approvals or financing methods; and
In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Buyer prior to the expiration of the applicable period for
satisfaction or waiver, Buyer may terminate this Agreement.
10.2 Conditions Precedent to Seller's Obligations. The obligations of Seller under this
Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all
of the following conditions precedent ("Seller's Conditions to Closing"):
(a) Escrow Holder holds the Purchase Price and all other instruments and
funds required for the Closing and will deliver to Seller the instruments and funds, including but
not limited to the Purchase Price (less Seller's closing costs) accruing to Seller pursuant to this
Agreement;
(b) except as otherwise permitted by this Agreement, all representations and
warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though
made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled
by the Closing Date; and
Agreement.
2156/015610-0090
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(c) Buyer is not in material default of any term or condition of this
In
629
In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied,
or waived in a writing signed by Seller prior to the expiration of the applicable period for
satisfaction or waiver, Seller may terminate this Agreement.
11. POSSESSION. After the Close of Escrow, Buyer agrees to allow Seller to remain in
possession of the Property up to and including the earlier of the following dates: (1) one hundred
and twenty (120) days after the Closing, or (2) the date when Seller surrenders possession of the
Property to Buyer. Seller agrees that on or before that date, Seller shall surrender the Property to
the City. Seller's right of possession under this provision shall not be transferable and may only
be utilized by Seller and Seller's immediate family. Seller shall coordinate the delivery of keys
and transfer of possession with the Public Works Department of the City of La Quinta or its
designee. During the Holdover Period, Seller shall pay rent to Buyer in the amount of ONE
THOUSAND DOLLARS ($1,000) per month ("Rent"). Rent shall be due and payable, in
advance, on the first day of each month, except that if the Close of Escrow occurs on a day other
than the first of the month then Rent shall be prorated for the number of days remaining in that
month and the number of days in the last month of the Holdover Period. Additionally, during the
Holdover Period, Seller shall be responsible for the payment of all utilities, telephone, waters,
alarm systems, gardening services, landscape maintenance and such other charges as those
normally paid by a month -to -month tenant of residential property. Prior to the transfer of
possession, Seller shall coordinate with Buyer as to the cancellation and/or transfer of any
ongoing services, such as utilities. Seller shall take no action which would result in a lien or
assessment being recorded against or imposed upon the Property. Seller may wish to obtain
renters insurance and any other insurance Seller deems necessary to protect Seller's interests and
the interests of Seller's family. Seller understands that Buyer is in no way providing any
insurance coverage that would extend protection to Seller or Seller's family. During the
holdover period, the Seller shall maintain the property in its current condition, normal wear and
tear excepted. Seller accepts the Property during this period in its "AS IS" condition, and Buyer
makes no representations or warranties as to the conditions of the Property. Seller acknowledges
that up until the transfer of possession, Buyer has not inspected the Property and Buyer shall
have no liability arising from the condition or use of the Property during the holdover period.
Seller, on behalf of Seller and Seller's family, hereby waives and releases the Buyer, its
employees and agents from any and all liability and claims for damages, including property
damage, bodily injury, or death, which arise the condition, use, occupancy of the Property during
the holdover period. Should any claim be made against the Buyer, its employees or agents (the
"Indemnified Parties") for damages, including property damage, bodily injury, or death, which
arise from the condition, use, or occupancy of the Property, or occur on the Property, during the
holdover period, Seller shall defend and indemnify the Indemnified Parties and promptly pay any
judgment rendered against them.
12. ALLOCATION OF COSTS.
12.1 Buyer's Costs. Buyer shall pay all closing costs associated with this Agreement
and the conveyance of the Property from Seller to Buyer, including any and all escrow and title
fees, recording fees, documentary transfer tax, the premium for the Title Policy (plus any
additional fee for ALTA extended coverage and/or title endorsements requested by Buyer), and
Buyer's own attorney's fees in connection with this Agreement and the transactions
contemplated hereby.
2156/015610-0090
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030
12.2 Seller's Costs. Seller shall pay Seller's own attorney's fees, if any, in connection
with this Agreement and the transactions contemplated hereby.
13. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental
entity (other than the City) shall commence any proceedings of or leading to eminent domain or
similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly
meet and confer in good faith to evaluate the effect of such action on the purposes of this
Agreement.
14. HAZARDOUS MATERIALS. To the best of Seller's knowledge, the Property has not at
any time been used for the purposes of storing, manufacturing, releasing or dumping Hazardous
Materials. For purposes of this Agreement, the term "Hazardous Materials" shall mean (1)
hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic
substances or related materials, whether solids, liquids or gases, including, but not limited to,
substances deemed as "hazardous wastes," "hazardous materials," "hazardous substances,"
"toxic substances," "pollutants," "contaminants," "radioactive materials," or other similar
designations in, or otherwise subject to regulation under, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. § 9601
et seq.; the Toxic Substance Control Act ("TSCA"), 15 U.S.C. § 2601 et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act
("RCRA"), 42 U.S.C. § 9601, et seq.; the Clean Water Act ("CWA"), 33 U.S.C. § 1251 et seq.;
the Safe Drinking Water Act, 42 U.S.C. § 300 et seq.; the Clean Air Act ("CAA"), 42 U.S.C. §
7401 et seq.; the Hazardous Waste Control Law, California Health and Safety Code § 25025 et
seq., the Carpenter -Presley -Tanner Hazardous Substance Account Act, California Health and
Safety Code, Division 20, Chapter 6.8, the Hazardous Materials Release Response Plans and
Inventory Act, California Health and Safety Code, Division 20, Chapter 6.95, The Underground
Storage of Hazardous Substances Act, California Health and Safety Code, Division 20, Chapter
6.7, the Porter -Cologne Act, California Water Code § 13050 et seq. and in any permits, licenses,
approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines
promulgated pursuant to the preceding laws or other similar federal, state or local laws,
regulations, rules or ordinances now or hereafter in effect relating to environmental matters
(collectively the "Environmental Laws"); and (ii) any other substances, constituents or wastes
subj ect to any applicable federal, state or local law, regulation, ordinance or common law
doctrine, including any Environmental Law, now or hereafter in effect, including, but not limited
to, (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor
vehicle fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated
biphenyls (PCB's) and (I) ureaformaldehyde.
15. COVENANTS OF SELLER. Seller agrees that during the period between the Effective
Date of this Agreement and the Closing Date:
(a) Seller shall maintain the Property in not less than the state of repair as that
existing on the Effective Date (excepting ordinary wear and tear);
(b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or
otherwise transfer (on or off record) the Property or any interest therein;
2156/015610-0090 _
703341.01 a05/10/06 —8 r �'
(c) Prior to Closing, Seller shall maintain Seller's existing insurance, if any, on the
Property; and
(d) Prior to the Closing, Seller shall not alter the physical condition of the Property or
introduce or release, or permit the introduction or release, of any Hazardous Materials in, from,
under, or on the Property.
16. MISCELLANEOUS.
16.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit
of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
Seller may not assign or otherwise transfer this Agreement or any interest or right hereunder or
under the Escrow without the prior written consent and approval of the Buyer, which consent and
approval may be withheld in the Buyer's sole and absolute discretion. No provision of this
Agreement is intended nor shall in any way be construed to benefit any party not a signatory
hereto or to create a third party beneficiary relationship.
16.2 Notices. All notices under this Agreement shall be effective upon personal
delivery, via facsimile so long as the sender receives confirmation of successful transmission
from the sending machine, or three (3) business days after deposit in the United States mail,
registered, certified, postage fully prepaid and addressed to the respective parties as set forth
below or as to such other address as the parties may from time to time designate in writing:
To Seller: Lorenzo Pereyra
Sandra Pereyra
46178 Dune Palms Road
La Quinta, California 92253
Telephone: (760) 578-4019
Facsimile: (760) 578-4049
To Buyer: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Manager
Facsimile No.: (760) 777-7101
Copy to: Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, California 92628-1950
Attn: M. Katherine Jenson, Esq.
Facsimile No.: (714) 546-9035
16.3 Fair Meaning. This Agreement shall be construed according to its fair meaning
and as if prepared by both parties hereto.
16.4 Headinp-s. The headings at the beginning of each numbered Section of this
Agreement are solely for the convenience of the parties hereto and are not a part of this
Agreement.
2156/015610-0090 703341.01 a05/10/06 -9- r'
16.5 Choice of Laws; Litigation Matters. This Agreement shall be governed by the
internal laws of the State of California and any question arising hereunder shall be construed or
determined according to such law. The Municipal and Superior Courts of the State of California
in and for the County of Riverside, or such other appropriate court in such county, shall have
exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service
of process on Buyer shall be made in accordance with California law. Service of process on
Seller shall be made in any manner permitted by California law and shall be effective whether
served inside or outside California.
16.6 Nonliability of Buyer Officials. No officer, official, member, employee, agent, or
representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or
execution thereon entered in any action hereon shall be personally enforced against any such
officer, official, member, employee, agent, or representative.
16.7 Gender; Number. As used in this Agreement, masculine, feminine, and neuter
gender and the singular or plural number shall be deemed to include the others wherever and
whenever the context so dictates.
16.8 Survival. This Agreement and all covenants to be performed after the Closing,
and, except as otherwise set forth herein, all representations and warranties contained herein,
shall survive the Closing Date and shall remain a binding contract between the parties hereto.
16.9 Time of Essence. Time is of the essence of this Agreement and of each and every
term and provision hereof, it being understood that the parties hereto have specifically negotiated
the dates for the completion of each obligation herein.
16.10 Waiver or Modification. A waiver of a provision hereof, or modification of any
provision herein contained, shall be effective only if said waiver or modification is in writing,
and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto
shall be considered to be a waiver of any breach or default unless expressly provided herein or in
the waiver.
16.11 Broker's Fees. Seller and Buyer represent and warrant to the other that neither
Buyer nor Seller has employed any broker and/or finder to represent its interest in this
transaction. Each party agrees to indemnify and hold the other free and harmless from and
against any and all liability, loss, cost, or expense (including court costs and reasonable
attorney's fees) in any manner connected with a claim asserted by any individual or entity for
any commission or finder's fee in connection with the conveyance of the Property arising out of
agreements by the indemnifying party to pay any commission or finder's fee.
16.12 Duplicate Originals. This Agreement may be executed in any number of
duplicate originals, all of which shall be of equal legal force and effect.
16.1.3 Severability. If any term, covenant or condition of this Agreement or the
application thereof to any person, entity, or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Agreement, or the application of such term, covenant, or
condition to persons, entities, or circumstances other than those as to which it is held invalid or
2156/015610-0090
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l
unenforceable, shall not be affected thereby and each term, covenant or condition of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
16.14 Exhibits. The following exhibits are attached hereto and incorporated herein by
this reference:
Exhibit "A"
Legal Description of Property
Exhibit `B"
Grant Deed
Exhibit "C"
Non -Foreign Affidavit
Exhibit "D"
Bill of Sale
Exhibit "E"
Escrow Instructions
Exhibit "F"
Special Escrow Instructions
16.15 Authority. The person(s) executing this Agreement on behalf of each of the
parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they
are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so
executing this Agreement such party is formally bound to the provisions of this Agreement, and
(iv) the entering into this Agreement does not violate any provision of any other agreement to
which such party is bound.
16.16 Entire Agreement; Amendment. Except as set forth above, this Agreement and
the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to
the matters contained herein, and no prior agreement or understanding pertaining to any such
matter shall be effective for any purpose. No provisions of this Agreement may be amended or
modified in any manner whatsoever except by an agreement in writing signed by duly authorized
officers or representatives of each of the parties hereto.
[END -- SIGNATURE PAGE FOLLOWS]
2156/015610-0090 ! ' Tj
703341.01 a05/10/06 -11- `/
IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this
Agreement, understands it, and hereby executes this Agreement to be effective as of the day and
year first written above.
ATTEST:
June Greek, Agency Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
M. Katherine Jenson, Agency Counsel
SELLER:
LORENZO PEREYRA
SANDRA PEREYRA
BUYER:
LA QUINTA REDEVELOPMENT AGENCY,
a public body corporate and politic
M
Thomas P. Genovese, Executive Director
[end of signatures]
2156/015610-0090
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�- U �^t
Four Seasons Escrow Inc. agrees to act as Escrow Holder in accordance with the terms of this
Agreement that are applicable to it.
Four Seasons Escrow Inc.
By:
Name:
Its:
2156/015610-0090 1
703341.01 a05/10/06 -13-
0r)s
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
That portion of the South 330.00 feet of the North 660.00 feet to the Northwest quarter of the
Northwest quarter of the Northeast quarter of Section 29, Township 5 South, Range 7 East,
San Bernardino Meridian, in the City of La Quinta, County of Riverside, State of California,
according to the Official Plat thereof, described as follows:
Beginning at the Northwest corner of the Northeast quarter of said Section 28;
Thence Southerly, on the Westerly line of the Northeast quarter of said Section 29, 330.00 feet
to the Northwest corner of land conveyed to Leon J. Heitzman, et ux, by Deed recorded in
Book 1796, Page(s) 462 of Official Records of Riverside County, California, said last
mentioned Northwest comer also being the true point of beginning; ,
Thence Easterly, on the Northerly line of said land conveyed to Leon J. Heitzman, 166.00 feet;
Thence Southerly and parallel with the Westerly line of the Northeast quarter of said Section
29, 58.00 feet;
Thence Westerly, parallel to the Northerly line of said land conveyed to Leon J. Heitzman,
166.00 feet to the Westerly line of the Northeast quarter of said Section 29;
Thence Northerly, on the Westerly line of the Northeast quarter of said Section 29, 58.00 feet
to the true point of beginning.
Except that portion within Dune Palms Road.
APN: 649-040-012
2156/015610-0090
703341.01 a05/10/06
037
EXHIBIT "B"
FORM OF GRANT DEED
[SEE ATTACHED]
2156/015610-0090
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038
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
LA QUINTA REDEVELOPMENT AGENCY
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
SPACE ABOVE THIS LINE FOR RECORDER'S USE
(Exempt from Recordation Fee per Gov. Code § 6103)
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
LORENZO PEREYRA AND SANDRA PEREYRA, Husband and Wife, as Joint Tenants,
hereby grant to the LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and
politic, that certain real property located in the City of La Quinta, County of Riverside, State of
California, legally described on Attachment No. 1, which is attached hereto, and incorporated
herein by this reference, subject to all matters of record.
Dated: , 2006
LORENZO PEREYRA
SANDRA PEREYRA
2156/015610-0090 703341.01 a05/10/06 2 0
STATE OF CALIFORNIA )
ss
COUNTY OF )
On , before me,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
[SEAL]
STATE OF CALIFORNIA )
) ss
COUNTY OF )
On
personally appeared
Notary Public
before me,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL]
2156/015610-0090 r
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t IL 040
40
ATTACHMENT NO. 1
LEGAL DESCRIPTION OF PROPERTY
That portion of the South 330.00 feet of the North 660.00 feet to the Northwest quarter of the
Northwest quarter of the Northeast quarter of Section 29, Township 5 South, Range 7 East,
San Bernardino Meridian, in the City of La Quinta, County of Riverside, State of California,
according to the Official Plat thereof, described as follows:
Beginning at the Northwest corner of the Northeast quarter of said Section 28;
Thence Southerly, on the Westerly line of the Northeast quarter of said Section 29, 330.00 feet
to the Northwest corner of land conveyed to Leon J. Heitzman, et ux, by Deed recorded in
Book 1796, Page(s) 462 of Official Records of Riverside County, California, said last
mentioned Northwest corner also being the true point of beginning;
Thence Easterly, on the Northerly line of said land conveyed to Leon J. Heitzman, 166.00 feet;
Thence Southerly and parallel with the Westerly line of the Northeast quarter of said Section
29, 58.00 feet;
Thence Westerly, parallel to the Northerly line of said land conveyed to Leon J. Heitzman,
166.00 feet to the Westerly line of the Northeast quarter of said Section 29;
Thence Northerly, on the Westerly line of the Northeast quarter of said Section 29, 58.00 feet
to the true point of beginning.
Except that portion within Dune Palms Road
APN: 649-040-012
2156/015610-0090 `• 041
703341.01 a05/10/06 Attachment 1 to Grant Deed
CERTIFICATE OF ACCEPTANCE
THIS IS TO CERTIFY that the interest in real property conveyed by a Grant Deed dated
from Lorenzo Pereyra and Sandra Pereyra, Husband and Wife, as Joint
Tenants, to the La Quinta Redevelopment Agency, a public body corporate and politic
("Agency"), is hereby accepted by the Agency by the signature of the undersigned agent on
behalf of the Agency pursuant to the authority conferred upon him by the Resolution No. 2006-
, adopted on , 2006, and that the Agency, as the Grantee, by its said duly
authorized agent, hereby consents to the recordation thereof.
DATED:
LA QUINTA REDEVELOPMENT AGENCY,
public body corporate and politic
By:
Name: Thomas P. Genovese
Executive Director, La Quinta Redevelopment
Agency
I HEREBY ATTEST to the authenticity of the foregoing signature and to the said adoption of
the said Resolution of his general authority to so act and certify that said authority has not
been revoked by any subsequent Resolution or order of the Agency.
DATED:
June S. Greek, Agency Clerk, La Quinta Redevelopment Agency
r,
2156/015610-0090
703341.01 a05/10/06 Attachment 1 to Grant Deed
EXHIBIT "C"
AFFIDAVIT OF NON -FOREIGN ENTITY
TO: LA QUINTA REDEVELOPMENT AGENCY ("Buyer")
The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a
transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.
To inform the transferee that withholding of tax is not required upon transfer of that certain U.S.
real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and
Escrow Instructions dated , 2006, and incorporated herein by reference
("Property"), that the undersigned ("Seller") hereby certifies the following:
1. Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as
those terms are defined in the Internal Revenue Code and Income Tax Regulations); and
2. The U.S. taxpayer identification number for Seller is and
; and
3. The address for mailing purposes of Seller is:
and
4. Seller understands that this certification may be disclosed to the Internal Revenue Service
by Buyer and that any false statement contained herein could be punished by fine,
imprisonment, or both.
Under penalty of perjury, I declare that I have examined this Certification and to the best of my
knowledge and belief, it is true, correct, and complete, and I further declare that I have authority
to sign this document on behalf of Seller.
Dated: 92006 SELLER:
LORENZO PEREYRA
SANDRA PEREYRA
2156/015610-0090 O
703341.01 a05/10/06
EXHIBIT "D"
BILL OF SALE
LORENZO PEREYRA AND SANDRA PEREYRA (collectively, the "Seller"), in
consideration of good and valuable consideration in hand paid by LA QUINTA
REDEVELOPMENT AGENCY (the "Buyer"), the receipt and sufficiency of which is hereby
acknowledged, does by these presents release, transfer, bargain, sell, assign and convey unto the
Buyer, its successors and assigns, all of the Personal Property as such is defined in that certain
Agreement for Purchase and Sale and Escrow Instructions between Seller and Buyer executed
, 2006, as such may have been amended.
Seller does hereby represent and warrant that all such property is free and clear of all
security interests, liens and encumbrances other than those assumed by Buyer and in good
working order and condition. Seller does hereby covenant with Buyer that it has good right to
sell, transfer, convey and assign all of right, title and interest in the same to Buyer and will
warrant and defend the same in favor of Buyer, its successors and assigns.
IN WITNESS WHEREOF, the Seller has caused these presents to be signed as of this
day of 92006.
SELLER:
LORENZO PEREYRA
SANDRA PEREYRA
2156/015 610-0090 r
703341.01 a05/10/06 044
`'
EXHIBIT "E"
ESCROW INSTRUCTIONS
[To be inserted by Escrow Holder]
2156/015610-0090 r 045
� `
703341.01 a05/10/06 5
EXHIBIT "F"
SPECIAL ESCROW INSTRUCTIONS
PRORATIONS AND/OR ADJUSTMENTS:
Escrow Holder is authorized and instructed to prorate and/or make adjustments on the
following items as of the close of escrow date:
TAXES ON REAL PROPERTY:
Prorate taxes, including all tax bill items, except taxes on personal property not conveyed
through this escrow, based on the current year's taxes, except between July 1 S1 and the date you
are furnished current taxes, based on immediate preceding year's taxes. In each case use the
figures furnished you by the title company, without liability on your part as to their correctness.
Owner to pay prior to delinquency, supplemental tax bills, and any taxes on personal property
not being sold herein, which taxes are a lien on the real property being conveyed and you are not
to be concerned herewith.
Refund, if any, from the Riverside County Tax Collector, for refund of taxes buyer is
being debited for herein, is to be handled outside of escrow. Four Seasons Escrow Inc., its
officers and employees are relieved of all responsibility and liability in connection therewith.
2156/015610-0090 046
� 6A
703341.01 a05/10/06 l
AGREEMENT FOR PURCHASE AND SALE AND
ESCROW INSTRUCTIONS
BY AND BETWEEN
LORENZO PEREYRA AND SANDRA PEREYRA
("SELLER")
AND
LA QUINTA REDEVELOPMENT AGENCY
("BUYER")
2156/015610-0090
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TABLE OF CONTENTS
Page
1. PROPERTY....................................................................................................................1
1.1 Improvements.....................................................................................................1
1.2 Fixtures and Personal Property...........................................................................1
2. PURCHASE PRICE.........................................................................................................2
2.1 Amount.............................................................................:................................... 2
2.2 Payment of Purchase Price....................................................................................2
3. RELOCATION ASSISTANCE........................................................................................2
4. ESCROW..........................................................................................................................2
4.1 Opening of Escrow...............................................................................................2
4.2 Escrow Instructions...............................................................................................2
5. TITLE MATTERS............................................................................................................ 3
6. CLOSE OF ESCROW......................................................................................................3
6.1 Close of Escrow; Closing Date............................................................................. 3
6.2 Recordation; Release of Funds and Documents...................................................4
7. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............4
7.1 Buyer's Obligations..............................................................................................4
7.2 Seller's Obligations...............................................................................................4
8. TITLE INSURANCE POLICY........................................................................................ 5
8.1 Title Policy............................................................................................................ 5
8.2 Payment for Title Policy....................................................................................... 5
9. REAL PROPERTY TAXES AND ASSESSMENTS...................................................... 5
10. CONDITIONS PRECEDENT TO CLOSING.................................................................6
10.1 Conditions Precedent to Buyer's Obligations....................................................... 6
10.2 Conditions Precedent to Seller's Obligations....................................................... 6
11. POSSESSION..................................................................................................................7
12. ALLOCATION OF COSTS.............................................................................................7
12.1 Buyer's Costs..........................................................................:............................. 7
12.2 Seller's Costs........................................................................................................ 8
2156/015610-0090�
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Page
13.
CONDEMNATION
..........................................................................................................8
14.
HAZARDOUS MATERIALS.........................................................................................8
15.
COVENANTS
OF SELLER.............................................................................................8
16.
MISCELLANEOUS......
....................................................................................................9
16.1
Assignment...........................................................................................................9
16.2
Notices..................................................................................................................
9
9
16.3
Fair Meaning ..........................................................
16.4
Headings...............................................................................................................9
16.5
Choice of Laws; Litigation Matters....................................................................10
16.6
Nonliability of Buyer Officials...........................................................................10
16.7
Gender; Number..................................................................................................10
16.8
Survival...............................................................................................................10
16.9
Time of Essence..................................................................................................10
16.10
Waiver or Modification.......................................................................................10
16.11
Broker's Fees......................................................................................................10
16.12
Duplicate Originals.............................................................................................10
16.13
Severability.........................................................................................................10
16.14
Exhibits...............................................................................................................11
16.15
Authority.............................................................................................................
11
16.16
Entire Agreement; Amendment..........................................................................11
EXHIBITS
Exhibit A
Legal Description of Property
Exhibit B
Form of Grant Deed
Exhibit C
Form of Affidavit of Non -Foreign Entity
Exhibit D
Bill of Sale
Exhibit E
Escrow Instructions
Exhibit F
Special Escrow Instructions
2156/015610-0090
703341.01 a05/10/06 -11- ` 49
�rw
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: May 16, 2006 BUSINESS SESSION:
ITEM TITLE: Approval of a Relocation Plan for the CONSENT CALENDAR:
Dune Palms Road Project
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Approve the Relocation Plan for the Dune Palms Road Project and authorize the City
Manager .to submit the Relocation Plan to the State. Department of Housing and
Community Development.
FISCAL IMPLICATIONS:
Implementing the Relocation Plan will result in the expenditure of up to $140,000 for
resident relocation costs. Funds are available for these expenses from the
Redevelopment Agency's 2004 Low- and Moderate- Income Housing Bond Fund.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On March 16, 2006 the City Council reviewed a draft Relocation Plan that addressed
the relocation needs for two single-family residences on Dune Palms Road. The La
Quinta Redevelopment Agency is in the process of considering property acquisition
agreements for these properties. After discussion, the City Council directed staff to
circulate the draft plan to the property owners and the general public for review and
comment. No comments were received. Staff is now recommending the City Council
approve the attached Relocation Plan (Attachment 1), and direct the City Manager to
submit the Relocation Plan to the State Department of Housing and Community
Development.
The Agency Board has directed staff to contact property owners in the Dune Palms
Road corridor (north of the Whitewater River and south of Westward Ho Road) to
ascertain their interest in selling their property to the Agency so that properties may be
assembled to accommodate affordable housing development. Three 5 0
owners expressed interest in selling their property to the Agency. Staff is continuing
to discuss purchase options with the remaining three owners. Two of the three
properties that staff is negotiating purchase agreements with are owner -occupied
single-family residences. Prior to considering property purchase agreements, the
California Community Redevelopment Law and the California Relocation and Real
Property Acquisition Guidelines require the Agency to prepare and submit a relocation
plan for City Council review and approval. Attached is the Relocation Plan for the
Dune Palms Road properties for Council consideration.
The Relocation Plan presents:
• Survey data concerning the demographic characteristics and present
circumstances 'of the affected residents and their relocation needs
• An assessment of the availability of comparable replacement housing within
the City of La Quinta and the surrounding community
• The steps and procedures the Agency will follow to ensure a fair and
equitable relocation program
• An estimate of the potential relocation costs.
The data presented in the Relocation Plan was compiled through a series of interviews
conducted in February 2006. The two households are occupied by owner occupants,
consisting of five adults. Both households have identified single-family homes that
they wish to purchase.
The Relocation Plan also details the relocation assistance program and the scope of the
relocation benefits. The relocation assistance program generally entails:
• Informing residents of their relocation rights and the scope of the relocation
benefits
• Determining each households specific housing needs
Identifying and updating information on replacement housing opportunities
Identifying federal, State and other governmental agency housing program
assistance
Assisting each person with completing relocation assistance applications
Assisting each displacee with finding replacement housing opportunities
Providing relocation payments in accordance with all State standards
• Establishing an appeal procedure with respect to disputes over relocation
benefits.
The scope of relocation benefits entails:
• Providing moving expense payments based upon the actual cost of using a
professional mover or based upon a fixed payment schedule if residents elect to
move themselves
• A home purchase price differential payment based upon the difference between
the appraised value of the resident's home and the cost to purchase- a 0 J 1
comparable replacement dwelling
• Mortgage interest differential payments to compensate for a loss if the owners
can demonstrate that their existing loans are at better financing terms than
current market terms.
• Incidental expense payments including legal, closing cost title and other costs
related to purchasing a comparable replacement dwelling.
The total relocation costs are estimated to range from $98,000 to $140,000.
FINDINGS AND ALTERNATIVES:
Alternatives available to the City Council include:
1 . Approve the Relocation Plan for the Dune Palms Road Project and authorize the
City Manager to submit the Relocation Plan to the State Department of Housing
and Community Development; or
2. Do not approve the Relocation Plan for the Dune Palms Road Project and
authorize the City Manager to submit the Relocation Plan to the State
Department of Housing and Community Development; or
3. Provide staff with alternative direction.
Respectfully submitted,
Doug as R. rvaAs, Community Development Director
Approved for submission by:
�t.o •
Thomas P. Genovese, City Manager
Attachment: 1. Relocation Plan
C 0 pow
ATTACHMENT
DUNE PALMS ROAD RELOCATION PLAN
LA QUINTA REDEVELOPMENT AGENCY
(q RSG
INTELLIGENT COMMUNITY DEVELOPMENT
053
DUNE PALMS ROAD RELOCATION PLAN
LA QUINTA REDEVELOPMENT AGENCY
CONTENTS OF THIS RELOCATION PLAN
INTRODUCTION......................................................................................................1
A.
ASSESSMENT OF NEEDS............................................................................2
B.
REPLACEMENT HOUSING RESOURCES.................................................3
C.
CONCURRENT RESIDENTIAL DISPLACEMENT
.....................................3
D.
TEMPORARY HOUSING................................................................................3
E.
PROGRAM ASSURANCES AND STANDARDS.........................................3
F.
RELOCATION ASSISTANCE PROGRAM...................................................4
G.
CITIZEN PARTICIPATION/PLAN REVIEW................................................4
H.
RELOCATION BENEFIT CATEGORIES.....................................................5
1.
PAYMENT OF RELOCATION BENEFITS ............................
:...................... 7
J.
APPEALS POLICY..........................................................................................7
K.
PROJECTED DATES OF DISPLACEMENT................................................7
L.
ESTIMATED RELOCATION COSTS............................................................7
GARSG I-aQuinta0une Palms Road Acq\Relocation Plan\Dune Palms Relocation Plan - Final.DOC r '
DUNE PALMS ROAD RELOCATION PLAN
INTRODUCTION
The La Quinta Redevelopment Agency ("Agency") established Project Area No. 2 in
May, 1989 to provide a mechanism to remove impediments to commercial and
residential development, to address public infrastructure and facility deficiencies, and to
increase and improve the community's supply of affordable housing. The properties
along Dune Palms Road ("Project Site") are within Project Area No. 2 and are being
considered by the Agency as a site for the development of affordable housing. This
action may result in the purchase and development of properties within the Project Site
and as a result, some housing will be affected and two households will have to be
permanently displaced. The acquisition of the Project Site will be pursued pursuant to
negotiated acquisition by property owners. The location of the housing, which is the
subject of this plan, is generally described as being located near the southeast corner of
Dune Palms Road and Westward Ho Drive and is more particularly described as
Assessor Parcel Numbers 649-040-005, 649-040-004, and 649-040-012. The location is
displayed on Attachment 1 a and 1 b.
The purpose of this Relocation Plan ("Plan") is to describe the affected buildings and
occupants and to discuss the Relocation Assistance that will be made available to the
occupants. Rosenow Spevacek Group, Inc. ("RSG") has prepared and will administer
the Plan under the direction of the Agency and will act as the relocation consultant for
this Plan. This Plan provides the results of a needs assessment survey, a housing
resource study, and details of the Agency's proposed relocation assistance program.
Furthermore, this Plan sets forth policies and procedures necessary to conform with
statutes and regulations established by the California Relocation Assistance Law,
California Government Code section 7260 et seq. ("CRAL") and the California
Relocation Assistance and Real Property Acquisition Guidelines, Title 25, California
Code of Regulations, chapter 6, section 6000 et seq. ("Guidelines").
No displacement activities will take place prior to the required reviews and approval of
this Plan.
ROSENOW SPEVACEK GROUP INC. PAGE 1; 0
DUNE PALMS ROAD RELOCATION PLAN
A.. ASSESSMENT OF NEEDS
To obtain information for the preparation of this Plan, personal interviews were
conducted with the two households living in the Project Site. The inquiries made of
each household concerned household size and composition, income, length and
type of occupancy, ethnicity, home language, disabilities/health problems, and
replacement housing preferences. Interviews were conducted on -site from
February to March, 2006.
The descriptive data in this Plan are based solely on the responses provided by the
households. No attempt was made to qualify income or other information provided
by residents.
Occupancy/Overcrowding
The population consists of 5 adults all residing in two- or three -bedroom homes.
Income
Income information was provided by both of the households. According to income
standards for the County of Riverside (Attachment 2), adjusted for family size as
published by the United States Department of Housing and Urban Development
("HUD"), both households are categorized as above moderate income.
Ethnicity/Language
The Project Site households identified themselves as Caucasian (3) and Hispanic
(2). The households reported the primary language as English (3) and Spanish (2).
Senior/Handicapped Households
There are two seniors (62 years or older) and no handicapped individuals. None of
the households indicated that they require any special accommodates or have any
specific facility needs.
Table 1, shows some of the household characteristics and needs.
Table 1: Housing Description
occu ncy
I Houshold Size
Room Count
Ethnicity
Language
ISeniors
lincome Levels
Owners I
Tenant
I Adults
I Children
I Bedrooms
I Bath
I Total
Caucasian
lHispanic
JEnglish ISpanish
Yes
n/a
2
0
2
2.25
6
n/a
2
n/a
2
n/a
Above Moderate
Yes
n/a
3
0
31
2.50
B
3
n/a
3
n/a
I Yes
I Above Moderate
Source: Survey of prpperty owners
The Project Site
The Project Site is situated on the southeast corner of Dune Palms Road and
Westward Ho Drive. La Quinta High School is directly in front of the Project Site
and Amelia Earhart Elementary School, and John Glen Middle School are within
short driving distance. The Project Site is located within close proximity to a
community park, a Fire Station, shopping centers, and grocery stores.
ROSENOW SPEVACEK GROUP INC. PAGE 2
DUNE PALMS ROAD RELOCATION PLAN
Preferred Relocation Areas and Location Needs
The Project Site residents expressed a desire to remain in La Quinta or relocate to
Palm Desert. However, they also indicated a willingness to relocate to other Desert
communities. Both households are only interested in home ownership. No
additional or special relocation needs (i.e. proximity to public transportation,
employment, schools, medical facilities, public/social services and agencies,
recreational services, parks, community centers, and shopping) were expressed by
either household.
B. REPLACEMENT HOUSING RESOURCES
A resource survey was conducted between February and March, 2006 to identify
available comparable, decent, safe, and sanitary units available in close proximity
to the Project Site. One three -bedroom unit, and one two -bedroom unit, are
required to adequately relocate the Project Site households. Replacement property
was identified in consultation with a local realtor, through internet research, and
MLS searches.
The survey focused on confirming the availability of comparable, decent, safe, and
sanitary units, which contain the required minimum number of bedrooms, an area of
adequate size for each household, and an area comparable with respect to the
number of rooms and habitable living space. Attachment 3a and 3b provide lists
of comparables (as defined in Guideline section 6008) in La Quinta and Palm
Desert based on the results of the homeowner surveys. The replacement houses
have a similar lot size and living area to the homeowners original property and are
located in the desired communities.
C. CONCURRENT RESIDENTIAL DISPLACEMENT
There are no other known projects currently underway that will compete for similar
replacement housing in the City of La Quinta.
D. TEMPORARY HOUSING
There is no anticipated need for temporary housing because relocation will not
occur until the Agency has entered binding agreements to acquire the property from
the owners and it is expected that the owners shall acquire replacement housing
prior to moving from the Project Site. Should such a need arise, the Agency will
respond appropriately and in accordance with all applicable laws and requirements.
E. PROGRAM ASSURANCES AND STANDARDS
Adequate funds are and will be made available to accommodate the payment of all
required relocation benefits. Services will be provided to ensure that displacement
does not result in different or separate treatment of households based on race,
nationality, color, religion, national origin, sex, marital status, familial status,
disability or any other basis protected by the federal Fair Housing Amendments
ROSENOW SPEVACEK GROUP INC. PAGE 3`
DUNE PALMS ROAD RELOCATION PLAN
Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title
VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act,
and the Unruh Act, as well as any other arbitrary or unlawful discrimination.
No one will be displaced without 90 days notice and unless "comparable"
replacement housing can be located and is available. "Comparable" housing
includes standards such as: decent, safe, and sanitary (as defined in § 6008(d) of
the Guidelines); comparable as to the number of bedrooms, living space, and type
and quality of construction of the acquired unit but not lesser in rooms or living
space than necessary to accommodate the displaced household; in an area that
does not have unreasonable environmental conditions; not generally less desirable
than the acquired unit with respect to location to schools, employment, health and
medical facilities, and other public and commercial facilities and services; and within
the financial means of the displaced household as defined in section 6008,
subdivision (c)(5) of the Guidelines. The relocation program to be implemented by
the Agency conforms to the standards and provisions set forth in Government Code
section 7260 et seq., the Guidelines, California Health and Safety Code
section 33410 et seq., if applicable, and all other applicable regulations and
requirements.
F. RELOCATION ASSISTANCE PROGRAM
Staff is available to assist any displaced household with questions about relocation
and/or assistance in relocating. Andrea Castro, the Acquisition Coordinator can be
contacted at (760) 765-3070 extension 102 from 8:30 am to 5:00 pm, Monday
through Friday. A comprehensive relocation assistance program, with technical
and advisory assistance, will be provided to the households being displaced. Close
contact will be maintained with each household. Specific activities will include:
1. Distribution of an informational brochure. (see Attachment 4)
2. Timely referrals to at least three comparable replacement units as defined
above and, if necessary, transportation will be provided to inspect potential
replacement units.
3. Assistance with completion and filing of relocation claims, loan applications,
and appeals forms, if necessary.
G. CITIZEN PARTICIPATION/PLAN REVIEW
This Plan will be provided to each household and will be made available to the
public for the mandatory thirty (30) day review period. Comments to this Plan will
be included as a Plan addendum prior to submission for approval before the
Agency. A copy of the approved Plan will be forwarded to the California
Department of Housing and Community Development ("HCD").
ROSENOW SPEVACEK GROUP INC. PAGE � 058
k.
DUNE PALMS ROAD RELOCATION PLAN
H. RELOCATION BENEFIT CATEGORIES
Relocation benefits will be provided in accordance with the CRAL, the Guidelines,
and all other applicable regulations and requirements. Benefits will be paid upon
submission of required claim forms and documentation in accordance with
approved procedures. The Agency will provide appropriate benefits for each
displaced household as required by law.
Residential Moving Expense Payments
The subject households will be eligible to receive a payment for moving expenses.
Payments will be made based upon either a fixed room count schedule or an
invoice for actual reasonable moving expenses from a licensed professional mover.
The method of moving expense payments may be selected by the household.
Fixed Payment - A fixed payment for moving expenses based on the number of
rooms containing furniture or other personal property to be moved. The fixed
moving payment will be based upon the most recent Federal Highway
Administration schedules maintained by the California Department of
Transportation. (See Attachment 5)
Actual Reasonable Moving Expense Payments - The displaced households
may elect to have a licensed, professional mover perform the move; if so, the
Agency will pay for the actual cost of the move up to 50 miles and all
reasonable charges for packing, unpacking, insurance, and utility connection
charges. The payment will be made directly to the mover or as reimbursement
to the displaced household.
Assistance to Homeowners
It is anticipated that two homeowner households will be displaced.
Displaced homeowners will be eligible for relocation replacement housing payments
if the following conditions are met:
a. The household has owned and occupied their unit for not less than 180
days prior to the "Initiation of Negotiations." and
b. The household purchases and occupies a replacement unit within one
year from: (i) the date that the household receives the final payment from
the Agency for all the costs of the acquired unit - or- (ii) the date that the
household vacates the acquired unit, whichever is later.
Displaced homeowner households will receive assistance in locating a
"comparable replacement" unit and will be eligible for the following benefits:
KUSENUw SPEVACEK GROUP INC. PAGE 5
6019
DUNE PALMS ROAD RELOCATION PLAN
1. Purchase Price Differential:
The displaced households will be entitled to receive an amount equal to the
difference between the price paid for the acquired unit and the amount required
to purchase a "comparable replacement" unit. The Agency will utilize a
Comparative Method (as explained in section 6102 of the Guidelines) to calculate
any price differential.
Comparative Method: On a case -by -case basis, the Agency will
determine the price of a "comparable replacement" unit, which is most
representative of the acquired unit, by selecting and considering the
listing price of at least three (whenever possible) "comparable
replacement" units. (25 Cal. Code Regs. Sec. 6102 (c)(1)(A)(1).)
The Price Differential is the difference between the acquisition cost of the
displacement dwelling and the lesser of the following two amounts:
• The price the displaces actually paid for the replacement dwelling; or
• The price of a comparable dwelling as determined by the Agency.
2. Other Payments:
Moreover, displaced homeowners will receive the following assistance:
(a) Payments to cover the cost between the difference of the household's
current debt or mortgage service and any increase in debt or mortgage
costs necessary to acquire a "comparable replacement" housing unit; and
(b) Incidental and reasonable one-time costs for acquiring a replacement
unit, such as escrow costs, and recording and credit reporting fees.
3. Rental Assistance Option:
If a displaced homeowner household, which has purchased and occupied its
current unit at least 180 days prior to the "initiation of negotiations," desires
to rent instead of purchase a replacement unit, the household is eligible for
all the benefits and assistance that is available to tenant households.
However, such replacement housing payments may not exceed the
payments the household would have been entitled to if it had elected to
purchase a replacement unit.
4. Last Resort Housing Payments:
There is currently sufficient comparable replacement housing for
homeowner households and the Agency does not anticipate a lack of
sufficient comparable replacement housing in the near future. However,
should such a situation arise, the Agency will respond appropriately and in
conformance with all applicable laws and requirements.
ROSENOW SPEVACEK GROUP INC. PAGE Q' �f
DUNE PALMS ROAD RELOCATION PLAN
1. PAYMENT OF RELOCATION BENEFITS
Relocation benefit payments will be made expeditiously. Claims and supporting
documentation for relocation benefits must be filed with the Acquisition Coordinator
within eighteen (18) months from: (i) the date the claimant moves from the acquired
property; -or- (ii) the date on which final payment for the acquisition of real property
is made, whichever is later. The Acquisition Coordinator will then submit the
relocation benefit claim form to the City Finance Department for review and
payment, if appropriate. Failure to submit claims within the 18 month period will
prevent the Agency from paying such claims.
No household will be displaced until "comparable" housing is located as defined
above and in section 6008, subdivisions (c) and (d) of the Guidelines. Relocation
staff will inspect any replacement units to which referrals are made to verify that
they meet all the standards of decent, safe, and sanitary as defined in section 6008,
subdivision (d) of the Guidelines. However, no household will be denied benefits if
it chooses to move to a replacement unit which does not meet the standards of
decent, safe, and sanitary housing.
J. APPEALS POLICY
The appeals policy will follow the standards described in section 6150 et seq. of the
Guidelines as supplemented by the Agency's approved Grievance Procedures(See
Attachment 6). Briefly stated, the displaced household will have the right to ask for
a review when there is a complaint regarding any of its rights to relocation and
relocation assistance, such as a determination as to eligibility, the amount of
payment, or the failure to provide a comparable replacement housing referral. The
request for review must be made within eighteen (18) months from: (i) the date the
claimant moves from the acquired property; -or- (ii) the date on which final payment
for the acquisition of real property is made, whichever is later. Failure to make a
timely request for review will result in your request being denied.
K. PROJECTED DATES OF DISPLACEMENT
Households will receive a 90 day notice to vacate before they are required to move.
These notices are expected to be issued on or about July, 2006.
Relocation is expected to be completed for all households on or about October,
2006.
L. ESTIMATED RELOCATION COSTS
The Agency anticipates using the following funds for the Project:
• Project Area No. 2, Low and Moderate Housing Funds
ROSENOW SPEVACEK GROUP INC. PAGE 7� c
�� U
DUNE PALMS ROAD RELOCATION PLAN
The following estimates are for budgeting purposes only. These figures should not
be interpreted as firm, "not to exceed" or actual entitlement costs. These figures
are based on the data obtained through occupant interviews, replacement site
availability, market rate research, and the judgment of the Agency staff. They do
not include payments to consultants or to contractors.
Any and all required financial assistance will be provided. The budget estimate is:
Table 2: Project Cost Estimate
Most Probable Cost
$51,064
High Estimate
1 $94,679
ROSENOW SPEVACEK GROUP INC. PAGE 8 062
DUNE PALMS ROAD RELOCATION PLAN
INDEX OF TABLES A ATTACHMENTS
TABLES
Table 1:
Table 2:
ATTACHMENTS
Attachment la:
Housing Description
Estimated Relocation Costs
Regional Site Map
Attachment 1 b:
Project Site Map.
Attachment 2:
HUD Income Category Limits for Riverside County
Attachment 3a:
Housing Resource Survey — Two Bedroom Comparables
Attachment 3b:
Housing Resource Survey — Three Bedroom Comparables
Attachment 4:
Relocation Assistance To Displaced Homeowner
Occupants (Brochure)
Attachment 5:
Fixed Payment Moving Schedule.
Attachment 6: Grievance Process
ROSENOW SPEVACEK GROUP INC. PAGE(J 063
064
G�
C
C��S
Attachment 2: HUD Income Category Limits for Riverside County
RIVERSIDE COUNTY
2005 Affordable Housing Costs for Home Purchase Programs
(income figures based on Department of Housing and Community Development income Limits dated February 25, 2005)
I Person Household
2 Person Household
3 Person HousehoTn
4 Person Household
Monthly
Monthly
Monthly
Monthly
Income
�'�
Affordable
Income
Annual Income
Affordable
Income
Annual Income
Affordable
Income
Annual Income
Affordable
_Category
Annual Income
Housing
9
I
Category
g y
Housing
9
Category
9 Y
Housing
g
Category
g Y
Housin g
(2)
Cost
Costs
Costs
Costs
Very ow 19,500 1 $487 IVeryLow
22,250Very
ow 1 $25,050 26 1 Veryo
$27,850
96
Low (3) 1 $31 200 $682 1 Low
35,650
$779 1 Low $40 100 $877 1 Low
$44 550
$974
oderite46 750 $1 250 IlMnijarnte
$53 450
1 428 0 Moderate $60 100 1 607 0Moderate
66 800
$1,785
Person Household
6 Person Househommorld
7 Person Household
8 Person Household
FIncom
Annual Income
Monthly
Affordable
Housin 9
Income
Cate or
9 Y
Annuallncome
Monthly
Affordable
Housin 9
Income
Category
Cate or
Annuallncome
Monthly
Affordable
Housin 9
Income
Cate or
g Y
Annual Income
Monthly
Affordable
Housin g
Very
30 050
51
VeryLow
32 300
807
Ver Low
34 500
863
VeryLow
36 750
918
48 100
1 052
Low
51 700
1 130
Low
55 250
1 208
Low
58 800
1 285
72 150
1 928
Moderate
77 500
2 071
Moderate
82 850
2 214
Moderate
88 200
2 357
1
Attachment 3a: Housing Resource Survey
Two Bedroom Comparables
Address
Type
Sales Price
Bedroom/Baths
44095 Calico Cir., La Quinta
Single Family
$395,000
3/2
73083 Santa Rosa Way, Palm Desert
Single Famil
$395,900
3/2
78760 Nolan Cir, La Quinta
Sin le Famil
$ 425,000
3/2
Note: Based on the assessed value of subject property, listings of comparable sales within the target price
range were comprised of three -bedrooms. Available two -bedroom dwelling did not meet square footage and
sales price criteria.
Attachment 3b: Housing Resource Survey
Three Bedroom Comparables
Address
Type
Sales Price
Bedroom/Baths
53720 Avenida Carranza, La Quinta
Single
Family
$510,000
3/2
43621 Palmero Ct., La Quinta
Single
Famil
$514,900
3/2
78605 Sanita Drive, La Quinta iSingle
Famil
$ 525,000
4/3
067
Attachment 4
City of La Quinta Redevelopment Agency
RELOCATION ASSISTANCE TO DISPLACED HOMEOWNER OCCUPANTS
Introduction
This booklet describes the relocation payments and other relocation assistance
provided under the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended ("URA") to most homeowners whose home is
acquired by the City of La Quinta Redevelopment Agency ("Agency"). To be eligible for
the assistance described in this booklet, you must have owned and occupied your home
for at least 180 days before the Agency offered to buy it.
If you are notified that your home will be acquired and you will be displaced, it is
important that you do not move before you learn what you must do to receive the
relocation payments and other assistance to which you are entitled.
This booklet may not answer all of your questions. If you have more questions, contact
the Agency. (Check the back of this booklet for the name of the person to contact at the
Agency.) Ask your questions before you move. Afterwards, it may be too late.
Summary of Relocation Assistance
As an eligible displaced homeowner occupant, you will be offered the following advisory
and financial assistance:
Advisory Services. This includes referrals to comparable replacement homes, the
inspection of replacement housing to ensure that it meets established standards, help in
preparing claim forms for relocation payments and other assistance to minimize the
impact of the move.
Payment for Moving Expenses. You may choose either a:
❖ Payment for Your Actual Reasonable Moving and Related Expenses, or
❖ A Fixed Moving Payment, or
❖ A combination of both, based on circumstances.
Replacement Housing Payment. To enable you to buy or, if you prefer, rent a
comparable replacement home, you may choose either:
r C1 6 8
❖ Purchase Assistance, or
❖ Rental Assistance.
If you disagree with the Agency's decision as to the relocation assistance for which you
are eligible, you may appeal that decision as provided by the Agency's Grievance
Procedures and state HCD Grievance Guidelines.
General Questions
Will I Be Paid For My Property Before I Have To Move?
If you reach an agreement to sell your property to the Agency, you will not be required
to move before you receive the agreed purchase price. If the property is acquired
through an eminent domain proceeding, you cannot be required to move before the
estimated fair market value of the property has been deposited with the court. (You
should be able to withdraw this amount immediately, less any amounts necessary to
pay off any mortgage or other liens on the property and to resolve any special
ownership problems. Withdrawal of your share of the money will not affect your right to
seek additional compensation for your property.)
Will I Have To Pay Rent To The Agency Before I Move?
You may be required to pay a fair rent to the Agency for the period between the
acquisition of your property and the date that you move. The rent will not exceed that
charged for the use of comparable properties.
How Will I Know I Am Eligible For Relocation Assistance?
You should receive a written notice explaining your eligibility for relocation assistance.
You will become eligible for relocation assistance on the date you receive the Agency's
written offer of "just compensation" to purchase your home. You should not move
before receiving that purchase offer. If you do, you may not receive relocation
assistance.
How Will The Agency Know How Much Help I Need?
You will be contacted at an early date and personally interviewed by a representative of
the Agency to determine your relocation needs and preferences for replacement
housing and advisory services. The interviewer will ask certain questions about you and
other members of your household. It is to your advantage to provide the information so
that the Agency can assist you in moving with a minimum of hardship. The information
you give will be kept in confidence.
How Soon Will I Have To Move?
If possible, a mutually agreeable date for the move will be worked out. You will be given
enough time to make plans for moving. Unless there is a health or safety emergency,
you will not be required to move without at least 90 days advance written notice of (1) at
least one "comparable replacement home" that is available to you and (2) the earliest
date by which you must move.
What Is A Comparable Replacement Home?
A comparable replacement home is:
• Decent, safe, and sanitary.
• Functionally equivalent to your present home.
• Actually available for you to buy.
• Affordable.
• Reasonably accessible to your place of employment.
• Generally as well located with respect to public and commercial facilities, such as
schools and shopping, as your present home.
• Not subject to unreasonable adverse environmental conditions.
• Available to all persons regardless of race, color, religion, sex, or national origin.
What is Decent, Safe, and Sanitary Housing?
Decent, safe, and sanitary housing is housing that:
• Meets local housing and occupancy requirements.
Additionally, it is housing that:
• Is structurally sound, weather tight, and in good repair.
• Contains a safe, adequate electrical wiring system.
• Has adequate living space for the occupants.
• Has a kitchen with a sink, hot and cold running water, and connections for a stove
and refrigerator.
• Has a separate, complete bathroom with hot and cold running water and sewage
system.
• Has heating as required by climatic conditions.
• Has an unobstructed exit to safe, open space at ground level.
• Is free of any barriers that would preclude your reasonable use of the unit, if you are
a person with a physical disability.
070
Will The Agency Help Me Find A Replacement Home?
Yes. You will be provided with referrals to comparable replacement housing. If
possible, you will be referred to at least three comparable replacement homes. The
maximum financial assistance for which you may qualify will be based on the cost of the
most representative comparable replacement home that is available to you. When the
Agency gives you its initial written purchase offer, it will typically inform you at that time,
or shortly thereafter, of your eligibility for relocation assistance, identifying the most
comparable replacement home and explain the maximum amount of relocation
assistance available to you.
Once the Agency representative has a clear understanding of your needs and
preferences, he or she will work with you to assure that you are given the best possible
choice of housing and offer you transportation to inspect these units.
If there is a mortgage on your present home, the Agency will refer you to lenders that
can provide mortgage financing for your new home. If the money paid for your old
home is applied to the purchase of your new home, there should not be any increase in
the number or amount of your monthly payments for mortgage interest and principal.
What If I Find My Own Replacement Housing?
You have every right to find your own replacement housing. However, before you buy
or rent, ask the Agency to inspect the unit to make sure that it is decent, safe, and
sanitary. If the housing unit is not decent, safe, and sanitary, you will not receive a
replacement housing payment.
What If I Encounter A Problem In Obtaining Housing Of My Choice?
If you encounter a problem in buying or renting housing of your choice, notify the
Agency immediately. The Agency will look into the matter and try to resolve it. You will
receive this help whether you were referred to the housing unit or found it yourself.
If you are unable to buy or rent a housing unit because of discriminatory practices on
the part of a real estate broker, rental agent, lender, or a property owner, the Agency
will help you file a formal housing discrimination complaint with the U.S. Department of
Housing and Urban Development or the appropriate State or local fair housing agency.
What Other Services Will I Receive?
In addition to help in obtaining a comparable replacement home, other assistance, as
necessary, will be provided in order to minimize the impact of your move. This
assistance may include referral to appropriate public and private agencies that provide
services concerning housing financing, employment, health, welfare, or legal assis-
tance. The range of services depends on the needs of the person being displaced.
071
You should ask the Agency representative to tell you about the specific services that will
be available to help you and your family.
What Is a Payment For Actual Reasonable Moving And Related Expenses?
You are entitled to a relocation payment to cover the actual reasonable cost of your
move. If you choose a Payment For Actual Reasonable Moving And Related Expenses,
you may include in your claim the reasonable costs for:
• Transportation for you and your family.
• Packing, moving and unpacking your household goods.
• Disconnecting and reconnecting household appliances and other personal property
(e.g., telephone and cable TV).
• Storage of household goods, as may be necessary.
• Insurance for the replacement value of your property during the move and necessary
storage.
• The replacement value of property lost, stolen or damaged in the move (but not
through your neglect) if insurance is not reasonably available.
The Agency will explain all eligible moving costs, as well as those which are not eligible.
You must be able to account for any costs that you incur, so keep all your receipts.
Select your mover with care. The Agency can help you select a reliable and reputable
mover.
You may elect to pay your moving costs yourself and be repaid by the Agency or, if you
prefer, you may have the Agency pay the mover. In either case, let the Agency know
before you move.
What Is A Fixed Moving Payment?
If you choose a Fixed Moving Payment, you will receive a payment based on the
number of rooms of furniture you will be moving, as shown on the Fixed Residential
Moving Cost Schedule. The Agency has a copy of the schedule and will help you
decide whether choosing this payment is in your best interest.
If you do not have an unusually large amount of personal property to move and are
capable of moving yourself, this payment should be more advantageous to you. No
special documentation is required to support your claim. You need only move your
personal property and complete the appropriate claim form in order to receive your
payment.
1 Want To Buy Another Home. How Much Purchase Assistance Will I Receive?
To help you buy a comparable replacement home, you will receive Purchase Assistance
equal to the sum of the following three costs:
0%
Purchase Price Differential. If the cost of replacement housing exceeds the
amount the Agency pays for your present home, you may be eligible for a payment
to cover the difference. The Agency will inform you in writing of the location and
cost of comparable replacement housing (and explain the basis of its determination)
so that you will know in advance how much assistance you may receive. That
information should help you decide how much you wish to pay for replacement
housing.
You are free to purchase any decent, safe and sanitary housing unit of your choice.
If the purchase price is less than the cost of a comparable replacement home, the
payment will be limited to the actual difference. If it exceeds the cost of a
comparable replacement home, the payment will be based on the cost of a
comparable home.
Examples: Let's say that the Agency pays $120,000 to purchase your home and
that a comparable replacement home costs $130,000.
❖ If you pay $129,000 for a replacement home, you would receive a $9,000
differential payment (the difference between the Agency's payment for the
acquisition of your home and the cost of your replacement home).
•'• If you pay $132,000 for the replacement home, you would receive a $10,000
• differential payment (the difference between the Agency's acquisition payment
and the cost of the comparable replacement home).
Mortgage Interest Differential Payment. This amount covers the "present value"
of the additional costs required to finance the purchase of a replacement home that
result if the interest rate you must pay for a new mortgage is higher than the interest
rate on the mortgage on your present home. It also covers other debt service costs.
The payment is based on the lesser of: the mortgage balance on your present home
or your new mortgage amount. To be eligible, the mortgage on your home must
have been a valid lien for at least 180 days before the Agency's initial written
purchase offer for your home.
You should provide the Agency with a copy of your mortgage(s) as soon as possible.
Based on that information and the prevailing terms and conditions of new mortgage
financing, the Agency will compute the approximate mortgage interest differential
payment for which you will be eligible, inform you of that amount and explain the
conditions on which it is based. The payment will be made available with the
purchase price differential in a timely manner to reduce the amount you must borrow
to buy your new home.
Incidental Expenses. This amount covers those extra costs typically charged when
one buys real property, such as the cost of preparing the deed and recording fees;
� ` 073
the cost of title insurance, revenue stamps and transfer taxes (not to exceed the cost
for comparable replacement housing); loan application, loan origination and
appraisal fees; the cost of a credit report; and for other costs such as certification of
structural soundness, home inspection and termite inspection. It does not cover
prepaid expenses, such as property taxes and insurance.
Remember, your total replacement housing payment is the sum of the purchase price
differential, mortgage interest differential, and incidental expenses.
To qualify for the payment, you must purchase and occupy a decent, safe and sanitary
replacement home within one year after the later of: the date you move or the date you
receive the final payment for the acquisition of your present home. However, the
Agency will extend this period for good cause.
If I Decide To Rent, Rather Than Buy, Another Home, How Much Assistance Will I
Receive?
If you decide to rent rather than buy a replacement home, you may be eligible to receive
Rental Assistance. The assistance covers a 42-month period and is computed in the
following manner.
The assistance needed for one month is based on the difference between the market
rent for your present home (including utilities), as determined by the agency, compared
to a comparable rental dwelling available on the market (including utilities). That
monthly need, if any, is multiplied by 42 to determine the total amount that you will
receive. This amount will be paid directly to you in monthly installments or other
periodic payments.
Examples: Let's say that the monthly "market rent' and average cost for utilities for
your present home are $250 and the monthly rent and estimated average utility costs
for a comparable replacement home are $350.
•'• If you rent a replacement home for $360 per month, including estimated utility
• charges, you will receive $4,200. That amount is 42 times $100 (the difference
between the market rent for your present home ($250) and the cost for a
comparable replacement home ($350)).
••• If you rent a replacement home for $310, including estimated average monthly utility
• charges, you will receive $2,520. That amount is 42 times $60 (the difference
between the "base monthly rent" for your present home ($250) and the actual cost of
your new home ($310)).
To qualify for rental assistance, you must rent and occupy a decent, safe, and sanitary
home within one year after the later of: the date you move or the date you receive the
t�
0- 74
final payment for the acquisition of your present home. However, the Agency will
extend this period for good cause. The amount of rental assistance cannot exceed the
computed purchase price differential.
Must I File A Claim To Obtain A Relocation Payment?
Yes. You must file a claim for each relocation payment. The Agency will provide you
with the required claim forms, help you to complete them, and explain the type of
documentation, if any, that you must submit in order to receive your relocation pay-
ments.
If you must pay any relocation expenses before you move (e.g., a deposit when you
contract for the purchase of a new home), discuss your financial needs with the Agency.
You will be able to obtain an advance payment to meet these costs. An advance
payment to purchase a home may be placed in "escrow." An advance payment for
moving expenses may be paid directly to the moving contractor to ensure that the move
will be completed on a timely basis.
You must file your claim within 18 months after the date you move or receive the final
payment for the acquisition of your present home. However, it is to your advantage to
file as soon as possible after you move. The sooner you submit your claim, the sooner
it can be processed and paid. If you are unable to file your claim within 18 months, ask
the Agency to extend this period; however the Agency is not obligated to extend this 18
month period..
Be careful not to confuse this 18-month period with the 12-month period within which
you must buy or rent and occupy a replacement dwelling in order to be eligible for a
replacement housing payment.
You will be paid promptly after you file an acceptable claim. If there is any question
regarding your right to a relocation payment or the amount of the payment, you will be
notified, in writing, of the problem and the action you may take to resolve the matter.
Do I Have To Pay Federal Income Taxes On My Relocation Payments?
No. Section 216 of the URA states that you need not report relocation payments as part
of your gross income for Federal tax purposes. For information on State or local income
taxes, you should check with the State or local income tax office in your area or with
your personal tax advisor.
What If I Don't Receive The Required Assistance. Can I Appeal?
If you disagree with the Agency's decision as to your right to relocation assistance or the
amount of a payment, or the adequacy of the housing to which you have been referred,
075
you may appeal the decision to the Agency. The appeal procedure is spelled out in the
HCD Grievance Procedure Guidelines and the Agency's Grievance Procedures. A copy
of the Agency's procedures has been attached to the Relocation Plan.
The Agency will inform you of its appeal procedures. Your appeal must be in writing.
However, if you need help, the Agency will assist you in preparing your appeal.
If you are a low- or moderate -income person and are dissatisfied with the Agency's
determination on your appeal, you may have an additional right to request
administrative review of that decision (e.g., by HUD or the State). The Agency will
explain whether this option is available.
You can expect a fair decision on any appeal. However, if you are not satisfied with the
final administrative decision on your appeal, you may seek review of the matter by the
courts.
I Have More Questions. Who Will Answer Them?
If you have any questions after reading this booklet, contact the Agency and discuss
your concerns with an Agency representative.
Agency: City of La Quinta Redevelopment Agency
Address: 78-495 Calle Tampico
La Quinta, CA 92253
Office Hours: 8:30 AM through 5:00 PM; Monday through Friday
Telephone Number: (760) 765-3070
Person to Contact: Andrea Castro
'" 076
Attachment 5: Fixed Moving Schedule
Schedule A
(Occupant Owns Furniture
Number of Rooms
Payments
1
$
625
2
$
800
3
$
1,000
4
$
1,175
5
$
1,425
6
$
1,650
7
$
1,900
8
$
2,150
Each additional room
$
225
Source: California Department of Transportation,
Federal Highway Administration Schedules
077
Attachment 6
City of La Quinta Redevelopment Agency
GRIEVANCE PROCEDURES
Purpose: The purpose of the Grievance Procedures is to attempt to resolve disputes between the
claimant and the Agency at the lowest possible administrative level while affording the claimant an
opportunity to have a full and fair review of his/her case. Therefore, all relevant evidence should be
presented at the lowest level of these proceedings. In any case where such evidence could have been
presented at a lower level and the claimant failed to do so, the relevant hearing body may, at its
discretion, refer the matter back to the lower level for consideration and determination prior to their
considering such evidence. A failure to provide evidence at a lower level of proceedings may prevent the
issue or evidence from being further reviewed, including, without limit, in judicial review for failure to
exhaust remedies. These procedures are supplemented by HCD Guidelines sections 6150-6176.
A. Right of Review
Initial Determination: Any displaced person or business who is not satisfied with a determination as
to eligibility, amount of payment, and failure by the Agency to provide comparable permanent or adequate
temporary replacement housing or the Agency's property management practices, or not properly applying
appropriate regulations, at his/her election, may have his/her claim reviewed and reconsidered by the
Agency's relocation consultant in accordance with the following procedures.
To obtain an initial determination from the Agency's relocation consultant, claimant must complete a
Relocation Complaint form and submit it to the Agency's relocation consultant and the City Clerk within
(540) days from the date he/she moves from the acquired property or receives final compensation for
displacement from the property, whichever is later.
The Agency's relocation consultant shall provide the claimant with a full written explanation of the
determination and the basis therefore, which explanation shall be provided within three weeks from the
date of receipt of the request. The written explanation shall include a statement of claimant's right to seek
within ten (10) days further review of his/her claim by either formal or informal review and an explanation
of the steps the claimant must take to obtain this review.
The right to an informal oral presentation as provided in section B below or a formal hearing as
provided in section C below shall not be conditioned upon first obtaining an initial determination from the
Agency's relocation consultant.
B. Informal Oral Presentation
Agency Review: If the claimant feels that the written explanation provided in section A above is
incorrect or inadequate, or if the claimant desires to proceed directly to informal review, he/she may
request an informal hearing with the Community Development Director or Designee ("Director").
(1) To obtain an informal hearing before the Director the claimant must request in writing that
the Director schedule such a hearing. Such written request shall be made (i) within ten
(10) days from the date of the written initial determination or, if the claimant does not wish
to request an initial determination, (ii) by submitting a Relocation Complaint form within
five hundred forty (540) days from the date he/she moves from the acquired property or
receives final compensation from the property, whichever is later.
(a) Within fifteen (15) days from the date of receipt of claimant's Relocation Complaint
form for an informal hearing, he/she will be afforded an opportunity to make an oral
presentation, or to request a written review by the Director of the relevant
documents and written materials submitted by the claimant.
(b) The claimant may be represented by an attorney or other person of his/her choosing
at the oral presentation hearing (at the cost of the claimant).
(c) The Director shall prepare a summary of the matters discussed and determinations
made during the informal hearing, or written review, and serve a copy thereof upon
the claimant.
(d) The Director shall review and reconsider the determination of the claimant's case in
light of:
- All material upon which the Agency based its original determination including
all applicable rules and regulations;
- The reasons given by the claimant for requesting review and reconsideration
of his/her claim;
- Whatever additional written material has been submitted by the claimant; and
Any further information which the Director may, in his/her discretion, obtain by
request, investigation or research, to ensure fair and full review of the claim.
The proceedings shall not be bound by any formal rules of evidence.
(2) The final determination on review by the Director shall include, but is not limited to:
(a) The Agency relocation consultant's initial determination, if applicable;
(b) The factual and legal basis upon which the decision is based, including any
pertinent explanation or rationale; and
(c) A statement of claimant's right to seek within ten (10) days further review of his/her
claim by the City Manager and Assistant City Manager and an explanation of the
steps the claimant must take to obtain this review.
(3) The right to a formal hearing as provided in section C below shall not be conditioned
upon first obtaining an informal hearing by the Director.
C. Request for Formal Review
The City Manager and the Assistant City Manager Review: If the claimant feels that the initial
determination by the Agency's relocation consultant, the Director's determination following the informal
oral hearing, or written review by the Director is incorrect or inadequate, or if the claimant desires to
proceed directly to formal review, he/she may request a formal hearing before the City Manager and the
Assistant City Manager (or, if there is no Assistant City Manager, such other person as the City Manager
may designate), acting as the Appeals Board ("Appeals Board").
To obtain a formal hearing before the Appeals Board the claimant must request in writing that the
Director schedule such a hearing. Such request shall be made (i) within ten (10) days from the date of
the Agency relocation consultant's initial determination, the Director's determination following the informal
079.
hearing or the Director written review or, if the claimant does not wish to request an informal hearing (ii)
within five hundred forty (540) days from the date he/she moves fro the acquired property or receives final
compensation from the property, whichever is later.
(1) Within fifteen (15) days from the date of receipt of claimants written request, he/she will be
notified of the formal hearing date. If the claimant requests additional time to prepare material
for consideration and shows good cause therefore, the hearing date shall be continued to
another date.
(2) The Appeals Board shall, at the time it gives notice of the formal hearing date, notify the
claimant that he/she has the right to be represented by an attorney or others at his/her own
expense, to present his/her case by oral or documentary evidence; the right to submit oral or
documentary evidence; the right to submit rebuttal evidence to conduct such cross-
examination as may be required for full and true disclosure of facts; and the right to seek
judicial review after having exhausted all administrative appeal remedies.
(3) The Appeals Board shall review and reconsider the initial determination and/or the
determination made at an informal hearing taking into consideration all material upon which the
challenged determination was made, all applicable rules and regulations, the reasons given by
the claimant for requesting review, any additional relevant evidence, oral or documentary,
submitted by either the claimant or the Agency's representatives. No evidence may be relied
upon by the Appeals Board where the claimant has been improperly denied an opportunity to
rebut evidence or cross-examine a witness. The proceedings of the Appeals Board shall not be
bound by any formal rules of evidence.
(4) The Appeals Board shall make its determination within six weeks from the date on which the
formal hearing is concluded or the date of receipt of the last material submitted, whichever is
later.
(5) The Appeals Board's determination shall be made in writing and shall contain its decision, the
factual and legal basis upon which the decision is made and a statement informing the
claimant of his/her right to appeal the decision to the Agency Board as provided below.
(6) The claimant shall be promptly served with a copy of the Appeals Board's determination.
Review by Redevelopment Agency. Any person who believes himself/herself to be aggrieved by
any final decision of the Appeals Board may, within five (5) days after that date on the Appeal Board's
notice of such ruling or act, appeal the Appeals Board's determination to the Redevelopment Agency
Board of Directors (the "Agency") by filing with the Community Development Director a written statement
of the rulings or acts complained of and the reasons for taking such appeal. The Director shall thereupon
refer such appeal to the Agency at its next regular meeting and the Agency shall thereupon fix a time for
the hearing of said matter, which time shall be not less than thirty (30) days from the time said appeal is
presented to the Agency by the Director. On the date thus fixed, or on the date to which said hearing
shall have been continued, the Agency shall proceed to hear and consider the evidence relating to said
matter and shall make and enter on its minutes its final determination therein. The Agency may confirm,
modify or set aside the findings of the Appeals Board, and the Agency's determination in the matter shall
be final and conclusive. No proceeding or action shall lie against the City, the Agency, the Community
Development Director, the City Manager, the Assistant City Manager (or such appointed designee) or any
member of either thereof, nor against any officer, agent or employee of the Agency or City to review or
enjoin the enforcement of its. determination or orders of the Agency made pursuant hereto, or to recover
damages for carrying out such orders in a lawful and reasonable manner, unless such action is
commenced within ninety days (90) from and after service of notice of the findings and determination of
the Agency. Notice of the determination of the Agency shall be served by the Community Development
Director upon the person, or persons, taking the appeal. The effect of any order from which an appeal is
so
taken as herein provided shall be suspended and of no force or effect until such appeal is fully
determined.
The claimant shall be deemed to have exhausted his/her administrative remedies upon filing timely
appeals and the Agency taking action upon his/her complaint.
E. Time Limits
General: The Community Development Director may extend any of the time limits as permitted by
HCD Guidelines section 6162 upon a showing of good cause; provided, however, that the time periods
established by these Grievance Procedures within which to timely appeal a decision from a lower body
shall not be extended. Any refusal to waive a time limit may be reviewed in accordance with the
procedures set forth in Section C above; provided, however, any request to review shall be made within
thirty (30) days from the date of receipt by claimant of written notice that the request to extend time has
been denied.
F. Review of Files By Claimant
The claimant may inspect all files and records bearing upon his/her claim or the prosecution of the
claimant's grievance, except to the extent the confidentiality of the material sought or the disclosure
thereof is protected or prohibited by law.
G. Effect of Determination
Determinations made by the Agency Board pursuant to the paragraph entitled "Review by
Redevelopment Agency" in section C shall be applicable to all eligible persons in similar situations
regardless of whether any such eligible person seeks a review. All written determinations shall be filed in
the records of the Agency and available for public inspection.
H. Right to Counsel
Any claimant has the right to be represented by an attorney at his/her expense at any and all stages
of the proceedings set forth in this Article.
I. Stay of Displacement Pending Review
If claimant seeks to prevent displacement, the Agency shall not require the claimant to move until at
least 20 days after it has made a determination and the claimant has had an opportunity to seek judicial
review. In all cases the Agency shall notify the claimant in writing 20 days prior to the proposed new date
of displacement.
J. Further Review
If the Agency denies the eligibility of a claimant for a payment, or disapproves the full amount
claimed, or refuses to consider the claim on its merits because of untimely filing, or any other ground, the
Agency's notification to the claimant of its determination shall inform the claimant of its reasons therefore,
and shall also inform the claimant of the applicable procedures for obtaining further review of this
determination.
These regulations prescribe the City of La Quinta procedures for granting administrative relief to any
person aggrieved by a determination as to eligibility for a payment authorized by the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 and the State of California Government
Code Section 7260, et. seq., with regard to the obligation of the Agency to refer such person to an
adequate replacement dwelling or to any person aggrieved by a determination as to eligibility for a
payment authorized by the above legislation to provide the opportunity for his/her application to be
reviewed by the appropriate department responsible for administering such payments.
082
Exhibit B
FIRST AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT FOR
THE COLLECTION, TRANSPORTATION AND DISPOSAL OF MUNICIPAL SOLID
WASTE
This first amendment (the "Amendment") to that certain agreement entitled "Amended
and Restated Agreement for the Collection, Transportation, and Disposal of Municipal Solid
Waste" (the "Agreement") is entered between the City of La Quinta (hereinafter "City") and
Burrtec Waste and Recycling Services, LLC (hereinafter "Burrtec" and/or "Contractor") so as to
be effective as of July 1, 2006.
RECITALS
A. City and Waste Management of California, Inc., a California Corporation dba
Waste Management of the Desert ("Waste Management") entered the Agreement, which is dated
July 5, 2000.
B. Waste Management's has requested that its rights and obligations as set forth in
the Agreement be transferred and assigned to Burrtec, and City has consented to this request
contingent upon various factors, including Burrtec's agreement to certain amendments to the
Agreement, which amendments the parties desire to memorialize by entering this Amendment.
COVENANTS
Section 1. Contractor. The term "Contractor" as used in the Agreement shall now refer
to Burrtec.
Section 2. Assumption of Obligations. By executing this Amendment, Burrtec agrees to
assume all of Waste Managements right, title, and interest in and to the Agreement, and Burrtec
agrees to timely discharge, perform or cause to be performed and to be bound by all of the
liabilities, duties and obligations imposed in connection with the Agreement as if it had been the
original party designated as the "Contractor" thereto. Included specifically, without limitation, in
the obligations and liabilities assumed by Burrtec are those set forth in Article X of the
Agreement. In this regard, Burrtec shall specifically assume any obligations and liabilities of
Waste Management resulting from the application of the hazardous substances indemnification
provisions of Section 10.2 in connection with the disposal of materials at facilities chosen by
Waste Management or owned by Waste Management or any of its Affiliates. While as between
Contractor and City this Agreement requires Contractor to assume any obligations and liabilities
of Waste Management that may exist pursuant to the terms of the Agreement, it is not intended
to abrogate any rights which Contractor may have pursuant to that certain asset purchase
agreement entered between Burrtec and Waste Management, dated January 25, 2006, to seek
indemnification or other remedies from Waste Management as a result of Contractor's
obligations hereunder.
Section 3. Maintenance of Existing Service Levels. Burrtec shall provide programs,
staffing levels, and services that meet or exceed the programs, staffing levels and services
083
provided by Waste Management prior to City's consent to the transfer and assignment of the
Agreement, without regard to whether such programs, staffing levels or services are specifically
called out in the Agreement or this Amendment. For instance, Waste Management allows any
Residential Customer desiring to change Cart sizes to do so at no charge, and Burrtec agrees to
continue this practice.
Section 4. Insurance and Surety Bond: As a condition precedent to the effectiveness of
City's consent to the transfer the Agreement to Burrtec, Burrtec shall provide evidence of
insurance and a performance bond meeting the requirements of Articles V and VI of the
Agreement.
Section 5. Identification of Vehicles and Equipment. City understands Burrtec will
utilize containers and collection vehicles in performance of the Agreement that it purchased from
Waste Management. All such equipment utilized by Burrtec shall be uniformly painted as
required by Article III of the Agreement. Burrtec shall not be required to repaint containers or
collection vehicles purchased from Waste Management to reflect its corporate colors, however if
it chooses to do so it shall accomplish repainting as expeditiously as reasonably possible. All
collection vehicles utilized by Burrtec shall comply with applicable laws and regulations,
including those related to the use of alternative fuels, and at a minimum all vehicles used in
residential and commercial routes shall be powered by low emission fuel sources.
Section 6. Limitation on requests for Fuel Surcharge. As additional consideration for the
City's consent to the transfer of the Agreement, Burrtec agrees that if during the remainder of the
term it seeks the City's consent to implement a "fuel surcharge," and recognizing that City has
unfettered discretion as to whether to permit any such surcharge, it will not do so until after July
1, 2007.
Section 7. Residential Document Shredding Program Implementation. As additional
consideration for the City's consent to the transfer of the Agreement, Burrtec agrees to
implement a residential shredding program at no additional cost. The residential document
shredding program shall be designed to meet at least the following minimum requirements. Not
less than one time per calendar year, Contractor shall establish a location within City to which
residents may deliver confidential documents, such as financial records. Contractor, or such
vendor to whom it may contract to provide this service, shall take possession of all records
delivered by residents to such location on the designated day(s) and cause them to be shredded
on site. Thereafter, Contractor shall make all reasonable efforts to recycle the materials
remaining after the shredding process is complete, and shall properly dispose of any remaining
materials.
Section S. Audited Financial Statements: Burrtec shall provide a third party designated
by City, such as its City Attorney or solid waste consultant, with its audited financial statements
for calendar year 2006 and calendar year 2007 within five (5) months of the end of such calendar
years. The City acknowledges that these records are viewed by Burrtec as proprietary and
confidential, and will endeavor to maintain the confidentiality of all proprietary information
provided by Burrtec. Notwithstanding the foregoing, any documents provided to City that are
public records are subject to being disclosed as may be required by law pursuant to a Public
Records Act request.
Section 9. Additional Reports/Records: The parties agree that Section 7.1 of the
Agreement shall be amended to require maintenance of the following records in addition to those
already required:
1. Customer services and billing/payment records;
2. Number of refuse, recycling and green waste routes and rout hours by service category
(residential, commercial, roll -off, and special services);
3. Facilities, equipment, and personnel used;
4. Number of refuse, recycling and green waste containers in service by frequency of
collection for each customer group (residential, commercial, roll -off); and
5. Number of roll -off box pulls.
Section 10. Transition Obligations: The parties agree that the Agreement shall be
amended to add the following language to Section 21.2:
At the end of the Term, or in the event this Agreement is terminated for cause prior to the
end of the Term, Contractor shall cooperate fully with City and any subsequent solid
waste enterprise it designates to assure a smooth transition of services. Contractor's
cooperation shall include, but not be limited to, providing route lists, billing information
and other operating records needed to service all premises covered by this Agreement.
The failure to cooperate with City following termination shall be conclusively presumed
to be grounds for specific performance of this covenant and/or other equitable relief
necessary to enforce this covenant.
Contractor shall provide any new solid waste enterprise with all keys, security codes and
remote controls used to access garages, gates and bin enclosures. Contractor shall be
responsible for coordinating transfer immediately after its final collection activities, so as
to not disrupt services. Contractor shall provide City with detailed rout sheets containing
service names and addresses, billing names and addresses, monthly rate and service
levels (number and size of containers and pickup days) at least 90 days prior to the
transition date, provide an updated list two weeks before the transition, and a final
updated list with any changes the day before the transition. Contractor shall provide
means of access to the new solid waste enterprise at least one full business day prior to its
first day of collection, and within sufficient time so as to not impede in any way the new
solid waste enterprise from easily servicing all containers.
Section 11. Liquidated Damages: The parties agree that the Agreement shall be
amended to add a new Section 9.2 which shall read as follows:
The City finds, and Contractor agrees, that as of the time of the execution of this
Amendment, it is impractical, if not impossible, to reasonably ascertain the extent of
damages which shall be incurred by City as a result of a breach by Contractor of certain
specific obligations of Contractor. The factors relating to the impracticability of
C 0 8
5
ascertaining damages include, but are not limited to, the fact that: (i) substantial damage
results to members of the public who are denied services or denied quality or reliable
service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of
the benefits of the Agreement to individual members of the general public for whose
benefit this Agreement exists, in subjective ways and in varying degrees of intensity
which are incapable of measurement in precise monetary terms; (iii) that the services that
are the subject of this Agreement might be available at substantially lower costs than
alternative services and the monetary loss resulting from denial of services or denial of
quality or reliable services is impossible to calculate in precise monetary terms; and (iv)
the termination of this Agreement for such specific breaches, and other remedies are, at
best, a means of future correction and not remedies which make the public whole for past
breaches.
The parties further acknowledge that consistent, reliable Solid Waste collection
service is of utmost importance to City and that City has considered and relied on
Contractor's representations as to its quality of service commitment in entering this
Amendment and the Agreement. The parties further recognize that some quantified
standards of performance are necessary and appropriate to ensure consistent and reliable
service and performance. The parties further recognize that if Contractor fails to achieve
the performance standards, or fails to submit required documents in a timely manner,
City and its residents will suffer damages and that it is and will be impractical and
extremely difficult to ascertain and determine the exact amount of damages which City
will suffer. Therefore, the parties agree that the following liquidated damage amounts
represent a reasonable estimate of the amount of such damages for such specific
breaches, considering all of the circumstances existing on the date of this Amendment,
including the relationship of the sums to the range of harm to City that reasonably could
be anticipated and the anticipation that proof of actual damages would be costly or
impractical. In placing their initials at the places provided, each party specifically
confirms the accuracy of the statements made above and the fact that each party has had
ample opportunity to consult with legal counsel and obtain an explanation of the
liquidated damage provisions at the time that the Agreement was made.
Contractor City
Initial Here Initial Here
Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set
forth below for each of the respective acts:
Failure to provide services
For each day that Contractor fails to provide any of the services required
under this Agreement, commencing five (5) business days after written
notice is provided by the City that Contractor is not providing required
services: $500.00/day
Failure to provide reports or records
For each day that required monthly reports are late or incomplete, or that
records required to be produced hereunder are not made available:
$50.00/day r 086
For each day that required annual reports are late or incomplete:
$100.00/day
Failure to Cooperate with Service Provider Transition:
For each day routing information, customer data and other operation
information requested by City is received after City established due dates,
both for preparation of a request for proposals and for new service providers
implementation of service: $1,000.00/day
For each day delivery of keys, access codes, remote controls, or other means
of access to containers or container locations is delayed beyond one (1) day
prior to new service provider servicing containers: $5,000/day
Prior to assessing liquidated damages, City shall give Contractor notice of its intention to
do so. The notice will include a brief description of the incident(s)/non-performance.
Contractor may review (and make copies at its own expense) all information in the
possession of City relating to incident(s)/non-performance. Contractor may, within ten
(10) days after receiving the notice, request a meeting with City. Contractor may present
evidence in writing and through testimony of its employees and others relevant to the
incident(s)/non-performance. City will provide Contractor with a written explanation of
his or her determination on each incident(s)/non-performance prior to authorizing the
assessment of liquidated damages. The decision of City shall be final.
Contractor shall pay any liquidated damages assessed by City within ten (10) days after
they are assessed. If they are not paid within the ten (10) day period, City may proceed
against the performance bond required by the Agreement or find Contractor in default
and terminate this Agreement, or both.
Section 12. Guarantee of Contractor's Performance. Concurrent with executing this
Amendment Contractor shall deliver to City a Corporate Guarantee, in the form attached hereto
as Exhibit 1, executed by Burrtec Waste Group Inc. affirming that it shall act as guarantor of
Contractor's obligations as set for in the Agreement, as amended by this Amendment.
Section 13. Reimbursement of City Expenses. As a condition precedent to the
effectiveness of the provisions of this Amendment, Contractor shall pay City an amount equal to
all administrative, legal and consulting costs it incurred in connection with negotiating,
analyzing, and entering this Amendment. Such payment shall be taken from the deposit already
provided to City by Contractor, with any amounts exceeding the amount of the deposit due
within 30 days of Contractor receiving an invoice from City for the foregoing expenses.
Section 14. Effectiveness of Agreement. ement. All provisions of the Agreement, excepting for
those expressly amended herein, shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to be
effective as of the date written above.
CITY OF LA QUINTA
LORA
DON ADOLPH, Mayor
Attest:
JUNE S. GREEK, City Clerk
Approved as to form:
By:
M. KATHERINE JENSON, City Attorney
BURRTEC WASTE AND RECYCLING SERVICES, LLC
0
its:
EXHIBIT 1
CORPORATE GUARANTY
THIS GUARANTY (the "Guaranty) is given as of the 1st day of July, 2004, and is made
with reference to the following facts and circumstances:
A. Burrtec Waste and Recycling Services, Inc., hereinafter ("Contractor") is a an
affiliate of Burrtec Waste Group (Guarantor).
B. Contractor has assumed the obligations of Waste Management of California, Inc.,
a California Corporation dba Waste Management of the Desert ("Waste Management") in that
certain agreement with the City of La Quinta ("City") dated July 5, 2000 and entitled "Amended
and Restated Agreement for the Collection, Transportation, and Disposal of Municipal Solid
Waste" (the "Agreement").
C. Contractor has additionally entered into an agreement with City dated July 1,
2006 and entitled "First Amendment to Amended and Restated Agreement for the Collection,
Transportation, and Disposal of Municipal Solid Waste" (the "First Amendment")
D. It is a requirement of the First Amendment, and a condition to the City approving
the transfer and assignment of the Agreement to Contractor, that Guarantor guaranty
Contractor's performance of the Agreement, including as it has been modified by the First
Amendment.
E. Guarantor is providing this Guaranty to induce the City to approve the transfer of
the Agreement and enter into the First Amendment.
NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows:
1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally
guarantees to the City the complete and timely performance, satisfaction and observation by
Contractor of each and every term and condition of the Agreement, as amended and modified by
the First Amendment, which Contractor is required to perform, satisfy or observe. In the event
that Contractor fails to perform, satisfy or observe any of the terms and conditions of the
Agreement, as amended and modified by the First Amendment, Guarantor will promptly and
fully perform, satisfy or observe them in the place of the Contractor (including by causing the
services required of Contractor to be performed by a Solid Waste Enterprise acceptable to City).
Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might
become recoverable by the City from Contractor due to its breach of the Agreement, as amended
and modified by the First Amendment.
2. Guarantor's Obligations Are Absolute. The obligations of the Guarantor
hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with
respect to any payment obligation of Contractor under the Agreement, or the First Amendment,
shall constitute a guarantee of payment and not of collection, and are not conditional upon the
genuineness, validity, regularity or enforceability of the Agreement or First Amendment. In any
action brought against the Guarantor to enforce, or for damages for breach of, its obligations
hereunder, the Guarantor shall be entitled to all defenses, if any, that would be available to the
Contractor in an action to enforce, or for damages for breach of, the Agreement as amended and
modified by the First Amendment (other than discharge of, or stay of proceedings to enforce,
obligations under the Agreement under bankruptcy law).
3. Waivers. Except as provided herein the Guarantor shall have no right to
terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations
under it for any reason whatsoever, including, without limitation: (1) the insolvency,
bankruptcy, reorganization or cessation of existence of the Contractor; (2) the actual or purported
rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in
bankruptcy resulting from the actual or purported termination of the Agreement; (3) any waiver
with respect to any of the obligations of the Agreement, as amended and modified by the First
Amendment, guaranteed hereunder or the impairment or suspension of any of the City's rights or
remedies against the Contractor; or (4) any merger or consolidation of the Contractor with any
other corporation, or any sale, lease or transfer of any or all the assets of the Contractor. Without
limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under
California Civil Code Section 2819.
The Guarantor hereby waives any and all benefits and defenses under California Civil
Code Section 2846, 2849, and 2850, including without limitation, the right to require the City to
(a) proceed against Contractor, (b) proceed against or exhaust any security or collateral the City
may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor's benefit,
and agrees that the City may proceed against Guarantor for the obligations guaranteed herein
without taking any action against Contractor or any other guarantor or pledgor and without
proceeding against or exhausting any security or collateral the City may hold now or hereafter
hold. City may unqualifiedly exercise in it sole discretion any or all rights and remedies
available to it against Contractor or any other guarantor or pledgor without impairing the City's
rights and remedies in enforcing this Guaranty.
The Guarantor hereby waives and agrees to waive at any future time at the request of the
City to the extent now or then permitted by applicable law, any and all rights which the
Guarantor may have or which at any time hereafter may be conferred upon it, by statute,
regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or
surrender this Guaranty.
The Guarantor hereby expressly waives, diligence, presentment, demand for payment or
performance, protest and all notices whatsoever, including, but not limited to, notices of non-
payment or non-performance, notices of protest, notices of any breach or default, and notices of
acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are
paid or performed, Guarantor's obligations hereunder shall continue and remain in full force and
effect in the event that all or any part of such payment or performance is avoided or recovered
directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective
of (a) any notice of revocation given by Guarantor or Contractor prior to such avoidance or
recovery, and (b) payment in full of any obligations then outstanding.
C9�
4. Term. This Guaranty is not limited to any period of time, but shall continue in
full force and effect until all of the terms and conditions of the Agreement have been fully
performed or otherwise discharged and Guarantor shall remain fully responsible under this
Guaranty without regard to the acceptance by the City of any performance bond or other
collateral to assure the performance of Contractor's obligations under the Agreement. Guarantor
shall not be released of its obligations hereunder as long as there is any claim by the City against
Contractor arising out of the Agreement based on Contractor's failure to perform which has not
been settled or discharged.
5. No Waivers. No delay on the part of the City in exercising any rights under this
Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to
or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of the City to
take other or further action without notice or demand. No modification or waiver of any of the
provisions of this Guaranty shall be effective unless it is in writing and signed by the City and by
Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it
is given.
6. Attorney's Fees. In addition to the amounts guaranteed under this Guaranty,
Guarantor agrees in the event of Guaranty's breach of its obligations including to pay reasonable
attorney's fees and all other reasonable costs and expenses incurred by the City in enforcing this
Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any
action instituted to determine the respective rights and obligations of the parties hereunder.
7. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be a
contract entered into in, and pursuant to the laws of, the State of California and shall be governed
and construed in accordance with the laws of California without regard to its conflicts of laws,
rules for all purposes including, but not limited to, matters of construction, validity and
performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may
be brought in any court of the State of California and Guarantor consents to personal jurisdiction
over it by such courts.
8. Severability. If any portion of this Guaranty is held to be invalid or
unenforceable, such invalidity will have no effect upon the remaining portions of this Guaranty,
which shall be severable and continue in full force and effect.
9. Binding On Successors. This Guaranty shall inure to the benefit of the City and
its successors and shall be binding upon Guarantor and its successors, including transferee(s) of
substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency.
10. Authority. Guarantor represents and warrants that it has the corporate power and
authority to give this Guaranty, that its execution of this Guaranty has been authorized by all
necessary action under its Article of Incorporation and By -Laws, and that the person signing this
Guaranty on its behalf has the authority to do so.
r C9I
11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or
certified, first class postage prepaid, addressed as follows:
To the City: Thomas P. Genovese, City Manager
City of La Quinta
P. O. Box 1504
La Quinta, CA 92247
with a copy to the City's Legal Counsel at the same address.
M
To the Guarantor:
Guarantor:
Burrtec Waste Group, Inc.
(title)
r " 092
COUNCIL/RDA MEETING DATE: May 16, 2006
ITEM TITLE: A Joint Public Hearing Between the City
Council and Redevelopment Agency to Consider the
Sale of Real Property Located at 53-205 Avenida
Navarro By and Between the La Quinta Redevelopment
Agency and Kim Loutsenhizer
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the sale of 53-205 Avenida Navarro 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 $68,000 from sale
proceeds. The Agency would also provide a $96,000 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 twenty-second
(22nd) unit to be sold; twelve (12) of these units were sold to existing tenants and ten
(10) 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.
093
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 $64,050 first
trust deed mortgage (the maximum loan the homebuyer can obtain). The Agency
would convert $96,000 of its equity in the property into a silent second trust deed
loan.
This unit has substantially rehabilitated and therefore, can be counted toward the
Agency's inclusionary housing requirement.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an agreement to sell real property located at 53-205 Avenida Navarro
to Kim Loutsenhizer 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 53-205 Avenida
Navarro to Kim Loutsenhizer for a purchase price of $165,000; or
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas vans
Community Development Director
Attachments: 1. Summary Report
Approved for submission by:
Thomas P. Genovese, Executive Director
it o94
ATTACHMENT#1
SUMMARY REPORT
FOR THE PROPOSED RESIDENTIAL HOME SALE AGREEMENT
BETWEEN THE
LA QUINTA REDEVELOPMENT AGENCY
AND
KIM LOUTSENHIZER
May 16, 2006
INTRODUCTION
This document is the Summary Report ("Report") for the proposed Sale Agreement
("Agreement") between the La Quinta Redevelopment Agency ("Agency") and Kim
Loutsenhizer ("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 53-205
Avenida Navarro 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.
0J5
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 $.64,050, and the Agency's
equity of $96,000 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. 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
$64,050. 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 $69,000 in sale proceeds and
retain a silent second trust deed of $96,000 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. Current
residential property sales for like dwellings in the Cove market area indicate values
of $310,000 to $325,000 for three bedroom, two bath single family dwellings in
good condition.
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 for $165,000. This value
was selected in order to facilitate the sale at a cost affordable to a very low income
household.
C 96
1aquinta\1ghp\renta1 housing\Sum Rpt 53-205 Ave Navarro 2
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.
097
1aquinta\1ghp\renta1 housing\Sum Rpt 53-205 Ave Navarro 3
T 0
.-Odf 4 �wQu�.rw
COUNCIL/RDA MEETING DATE: May 16, 2006
ITEM TITLE: A Joint Public Hearing Between the City
Council and Redevelopment Agency to Consider the
Sale of Real Property Located at 53-195 Avenida
Carranza By and Between the La Quinta Redevelopment
Agency and Corina Gomez
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the sale of 53-195 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 $68,000 from sale
proceeds. The Agency would also provide a $96,000 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 twenty-first (21 st)
unit to be sold; eleven (1 1) of these units were sold to existing tenants and ten (10) 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. It
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 $64,050
first trust deed mortgage (the maximum loan the homebuyer can obtain). The Agency
would convert $96,000 of its equity in the property into a silent second trust deed
loan.
This unit has substantially rehabilitated and therefore, can be counted toward the
Agency's inclusionary housing requirement.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an agreement to sell real property located at 53-195 Avenida Carranza
to Corina Gomez 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 53-195 Avenida
Carranza to Corina Gomez for a purchase price of $165,000 and authorize the
Executive Director to execute the necessary documents to complete the
property sale; or
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas R vans
Commun y Development Director
Attachments: 1. Summary Report
Approved for submission by:
Thomas P. Genovese, Executive Director
099