2007 06 05 RDAea# 4 #a aeoi
Redevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, JUNE 5, 2007 - 3:00 P.M.
Beginning Resolution No. RA 2007-005
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.
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 acquisition
of real property is considered.
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
Redevelopment Agency Agenda 1 June 5, 2007
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.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1 . APPROVAL OF MINUTES OF MAY 15, 2007
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be
approved by one motion.
1. APPROVAL OF DEMAND REGISTER DATED JUNE 5, 2007.
BUSINESS SESSION
1. CONSIDERATION OF THE APPROPRIATION OF FUNDS FOR BUDGET
ADJUSTMENTS AND AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO
APPROVE AND EXECUTE THE CHANGE ORDERS FOR DEVELOPMENT OF
THE VISTA DUNES COURTYARD HOMES.
A. MINUTE ORDER ACTION
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS
1. DISCUSSION REGARDING LOW -MODERATE HOUSING (TYPE OF
PRODUCTION UNITS) (REQUESTED BY CHAIRMAN OSBORNE).
PUBLIC HEARINGS — NONE
06
Redevelopment Agency Agenda 2 June 5, 2007
ADJOURNMENT
Adjourn to a special meeting of the Redevelopment Agency to be held on June 19,
2007, at 2:00 p.m., followed by a regular meeting beginning at 3:00 p.m. in the
City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency meeting of June 5,
2007, 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 1 1 1, on June 1, 2007.
DATED June 1, 2007
VERONICA J. NTECINO, City Clerk
City of La Quinta, California
J" a() --
Redevelopment Agency Agenda 3 June 5, 2007
Taf 4 XP Q"
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: June 05, 2007
BUSINESS SESSION:
ITEM TITLE: Demand Register Dated June 05, 2007 /
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated June 05, 2007 of which
$493,116.47 represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
2
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COUNCIL/RDA MEETING DATE: June 5, 2007
ITEM 'TITLE Consideration of the Appropriation of
Funds for Budget Adjustments and Authorization for
the Executive Director to Approve and Execute
Change Orders for Development of the Vista Dunes
Courtyard Homes
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Appropriate $3,188,819 from the unallocated reserves of the Project Area No. 2 Low
and Moderate -Income Housing Fund, account number 246-0000-290-00-00, and
authorize the Executive Director to approve and execute change orders for the
development of the Vista Dunes Courtyard Homes.
FISCAL IMPLICATIONS:
This action would result in the expenditure of $3,188,819 in Agency Low and
Moderate -Income housing funds. The Agency has funds available in the Project No. 2
unappropriated reserves. These funds are not earmarked for other affordable housing
initiatives.
BACKGROUND AND OVERVIEW:
The La Quinta Redevelopment Agency purchased the Vista Dunes Mobile Home Park in
order to redevelop a dilapidated, 1950's vintage travel trailer mobile home park with
permanent affordable rental housing. Located at 78-990 Miles Avenue (just west of
Adams Street), the Agency facilitated the relocation of all Park residents, the design of
80 courtyard oriented single-family and duplex homes. The Agency is now
constructing the site improvements and dwellings. Construction is 35% complete. All
of these dwellings will be rented to very low-income family households.
As construction progressed, opportunities and challenges surfaced that impact the
construction budget. These entail:
Increasing the size and functionality of the commons building to secure a
perfect 9% State tax credit financing score; 00
• Additional off -site street, drainage and sewer improvements to address existing
circulation, storm water drainage and street flooding, and sewer capacity
constraints;
• Construction modifications resulting from the Coachella Valley Water District
(C:VWD) revising the sanitary sewer inlet location;
• The potential to secure LEED (Leadership in Energy and Environmental Design)
certification (an initiative sponsored by the U.S. Green Building Council) of all 80
dwellings.
The total amount appropriated (acquisition, relocation/demolition, design, municipal
fees, construction) to date is $32,012,957. Staff is requesting an additional
$3,188,819 to complete this project for a total cost of $35,201,776. This represents
a 10% increase over the current appropriations. The Agency or its non-profit operator,
Southern California Housing Corporation, is securing $13,694,301 to off -set this
investment: $12,694,301 in 9% tax credit funding and up to $1,000,000 in energy
and green builder rebates. When secured and if the Agency Board approves the
additional funding, the net Agency investment would be $21,507,475 or $268,843
per unit. The cost per unit excluding relocation costs will be $203,843. This amount
of net investment is primarily required because:
• Very Low -Income Rents. The dwelling rents will be affordable to very low-
income households for 55 years. The permanent mortgage funding these rents
can support is $1,317,152. If market rents were charged (averaging $1,000
per month), the supportable permanent mortgage funding this development
would be $12,000,000. This differential adds $129,000 to the cost of each
new dwelling.
• Relocation/Demolition Cost. Mobile home park resident relocation and
demolition costs were $5,200,000. This expense adds $65,000 to the cost of
each new dwelling.
• Extraordinary Site Conditions. Additional expenses were incurred to grade the
site, export soil, and locate wet and dry utilities. Since the mobile home park
was developed prior to the surrounding development, its elevation was higher
than the adjoining properties. Further, its rectangular shape with a narrow
frontage on Miles Avenue limited access and construction staging and
sequencing options. In order to accommodate these existing conditions,
$1,500,000 of additional grading, soil export, and wet/dry utility expenses were
incurred. This expense adds $18,750 to the cast of each new dwelling.
• Solar Energy Generation. The development includes photovoltaic cells to
generate electrical power. This equipment will cost $1,600,000. The Agency
may receive $530,000 in rebates (based upon the current rebate program)
leaving a net cost of $1,070,000. This feature will annually save $720 per unit
in electric utility costs. This adds $13,375 to the cost of each new dwelling.
• Additional Off -site Improvements. This development is assuming $683,360 in
off -site improvement costs in order to rectify existing circulation, roadway
median, and storm water flooding deficiencies. This adds $8,542 to the cost of
each new dwelling.
Energy Efficiency Measures. The proposed energy efficiency and water saving
improvements add $638,547 to the development costs; this adds $7,982 to
the: cost of each new dwelling. These features will further reduce energy costs
and reduce water usage by 1,900,000 gallons per year.
Additional Funding Request
Staff is requesting the Agency Board appropriate $3,188,819 to fund costs prior to
receiving energy rebates, and to fund design and construction cost increases. The
following chart identifies how these funds would be allocated:
UTILITY REBATE APPROPRIATION
$
752,170
9%TAX CREDIT FINANCING
$
462,688
Construction Cost
Architecture/ Engineering/ Testing
$
$
$
279,688
183,000
462,688
NEIGHBORHOOD/ DEVELOPMENT IMPROVEMENTS
$
733,360
Construction Cost
Architecture/ Engineering/ Testing
$
$
$
698,360
35,000
733,360
CVWD MODIFICATIONS
$
602,054
Construction Cost
Architecture/ Engineering/ Testing
$
$
$
529,054
73,000
602,054
LEED CERTIFICATION
$
638,547
Construction Cost
Architecture/ Engineering/ Testing
$
$
$
479,547
159,000
638,547
TOTAL APPROPRIATION REQUEST
$
3,188,819
The details for each category are as follows:
• Utility Rebate Appropriation. When the construction funds were appropriated
on August 1, 2006, staff anticipated that up to $800,000 in utility rebates
would be received during the construction process. In applying for these
rebates, the timing of receipt of rebate funding changed in that rebates would
be funded after construction was complete and -the systems were operational.
Since expenditures must be made during the construction process; staff is
requesting an appropriation of $752,170 to fund these costs. When rebates are
received, the funds will be deposited into the Housing Fund. The $47,830
difference between the $800,000 anticipated utility rebate income and the
$752,170 appropriations request will be covered through the other
appropriations. Staff anticipates obtaining $560,000 to $1,000,000 in rebate
funding.
• 9% Tax Credit Financing. When applying for 9% tax credits, Southern
California Housing Development Corporation indicated that this development
would obtain a better score if the community room facilities were expanded by
2,100 square feet to accommodate larger resident assistance programs and
equipment storage. The design and construction costs associated with this
change total $733,360. Funding this cost ensures the opportunity that this
development would receive tax credit financing. As this staff report was
drafted, the California Tax Credit Allocation Committee (CTAC) provided
confirmation that our application received a perfect score. We are now awaiting
final notification of tax credit award.
• Neighborhood/Development Improvements. As stated above, as project design
progressed, additional improvements were identified that would benefit the
greater neighborhood. These include addressing street flooding on Miles
Avenue by providing additional drainage facilities; constructing a deceleration
lane on the north side of Miles Avenue, west of Adams Avenue; installing a
landscape median in Miles Avenue; and improving the southeast site boundary
interface with Family Heritage Church. These improvements cost $733,360 to
design and construct. To accomplish the deceleration lane improvements, the
Church has agreed to dedicate its Miles Avenue frontage to the City at no cost.
Further, the Church has agreed to provide an exclusive use easement wherein
Vista Dunes would be allowed to use a 1,200 square foot strip along the
southeast boundary for 55 years. This area would be improved as part of the
development program and would add to the development's open space.
• CVWD Modifications. These entail relocating the sanitary sewer tie-in location
from a neighboring backyard at the northwest corner of the site to Sanita Drive,
north of Adams Park. Initially, CVWD indicated they had an easement of
sufficient width to accommodate the sewer connection. However, field checks
indicated otherwise. This resulted in a construction delay and a delay claim by
Davis Reed, the construction contractor. The: delay claim, the sewer line
redesign and construction costs, and the cost to restore the Adams Park
improvements that were modified to accommodate the sewer line, adds
$602,054 to the construction cost. A benefit resulted in that the new sewer
line location allowed the Family Heritage Church to tie into this line and abandon
their on -site septic system.
• LEED Certification. The final appropriation request is for $638,547 to
accommodate improvements to achieve LEED certification. The project's initial
design included features that embraced green building practices: dwelling size,
building orientation, thermal chimneys, shaded south and west facing walls,
water efficient landscaping, tank less water hieaters, heat reflective roofing
materials, low E windows, solar energy generation, and high efficiency fixtures
and appliances. LEED recently expanded their program to include residential
dwellings. The project architect who is LEED certified, evaluated this
development and found that we could apply for the LEED for home pilot
program. Further research and consultations with LEED representatives
indicated that if the Agency installed additional water and energy saving fixtures
and equipment, instituted an expanded materials recycling program, and
enhanced indoor air quality by substituting formaldehyde emitting cabinets with
formaldehyde free cabinets, this development could at least achieve LEED
certification. The LEED certification has four standards; Bronze, Silver, Gold and
Platinum. The consensus from all the LEED representatives and consultants
indicates that all 80 dwellings would achieve at least a Gold Standard. In
addition to reducing energy consumption and water usage, improving
environmental compatibility, and decreasing operations costs, Vista Dunes
Courtyard Homes has the potential to be the; highest ranking multi -family
affordable housing development ever built. Attachment 1 summarizes some of
the potential LEED benefits and features.
Staff is also requesting the Agency Board authorize the; Executive Director to approve
and execute change orders if the appropriations request is granted. This request is
being made to avoid construction delays that may increase costs. Attachment 2
identifies the change orders the Executive Director would have authorization to
approve. If other change orders occurred or if costs increased beyond the requested
amount, staff would then seek Agency Board approval.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve the appropriation of $3,188,819 from the unallocated reserves of the
Project Area No. 2 Low and Moderate -Income Housing Fund, account number
246-0000-290-00-00, and authorize the Executive Director to approve and
execute change orders for the development of the Vista Dunes Courtyard
Homes; or
2. Do not approve the appropriation of $3,188,819 from the unallocated reserves
of the Project Area No. 2 Low and Moderate -Income Housing Fund, account
number 246-0000-290-00-00, and do not authorize the Executive Director to
approve and execute change orders for the development of the Vista Dunes
Courtyard Homes; or
3. Provide staff with alternative direction.
Respectfully submitted,
AsDoug11 Y"OEJv5ns, Assistant City Manager/
Interim Community Development Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1 . LEED Benefits and Features Summary
2. Budget Detail for New Costs
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ATTACHMENT 2
Budget Detail for New Costs
Architecture
& Engineering Contractor
Costs Costs
Improved Facilities
Commons and Maintenace Building $ 18,000 $ 269,688
Increased Accessability $ 10,000
9% Tax Credit Financing Application $ 165,000
Median and Landscaping
$
15,000
$
161,060
Water do Median
$
14,500
Address flooding issue on Miles Avenue
$
9,000
$
35,200
Decel Lane and R of W
$
4,000
$
17,500
No Persons Land
Engineering and Easements
$
3,000
$
12,500
Removal of Utility and Lift Station Vaults
$
10,000
Dry Utility Design Upgrade
$
90,000
Encase local power
Extra Conduits
IID Design Adjustment
Model Changes
$
311,600
Cooling Tower Windows
Upgrade Roofing to 60 mil
Acoustical Enhancements
Upgrade to Concrete Drive
Addition of Neighborhood Bus Stops
$
4,000
$
46,000
Total
JCVWD MODIFICATIONS
$ 602,054
Davis Reed delay claim
$
244,442
Relocation of sewer tie in
Sewer add
$ 29,000 $
64,796
Parts; damage and rework
$
12,000
Separate Fire Supply
$ 18,000 $
122,816
Redesign of Miles Avednue Water supply
$ 26,000 $
25,000
Work out of sequence
Temporary fire water
$
60,000
Building materials recycling program
$
25,660
Dual Flush Toilets
$
34,171
Low flo faucets and oxy shower heads
$
10,000
Water and Energy efficient laundry'"
$
72,000
Auto detect and shutoff valves
$
22,600
Energy Star Refrigerators""
$
72,300
Energy Star Fixtures"
$
45,200
Efficient Puron HVAC units'"
$
50,726
Formaldahyde Free Cabinets
$
146,900
Total LE'ED
$ 159,000 $
479,547
TOTAL IMPROVEMENTS $ 2,436,649
Notes:
0.1,,
* Required to achieve $11,377,149 (9% tax credits) and $1,317,152 (permanent) for a total of $
*� California Green Builder Rebates Available for up to $38,085
Page 1 of 1
Dear City Council, Enclosed please find a letter I have delivered to the Resort. I want each and every one of
you to know how reprehensible I believe your conduct is in allowing the resort to utterly ignore the Zoning
Code, as well as the health and welfare of the public There is absolutely no excuse to allow public
endangerment on one hand and then on the other hand, threaten me with ja11 over the painting of a wall the
Resort has continuously damaged.
1 attended the meeting wherein the Mayor offered and expected an easy sot bon, based on his distribution
experience. Instead, the Resort ignored the Mayor, and continued on 1 i s illegal ways, abetted and
assisted by the City attorney. All of us in this community have now learned That the Resort is a law unto itself.
This improper course of conduct may last indefinitely, but at some point; there will come a time when in fact
there will be serious accountability. You have choices between what is right as well as what is legal. I simply
ask that you do some serious soul searching and seriously consider the: oath you took, and then govem
yourselves accordingly.
Sin re y
Ste a Davis
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Page 1 of 1
Dear Roger, This will further advise you that On Sunday, Uay-3, 2007. my
7:14 AM by four fifty foot container trucks with twenty foot cabs and one Cla
interfered with traffic and violated the Noise ordinance for over forty, five min
and it was consistently over eighty decibels. At no time was the decibel lev
Quite frankly, 1 am utterly fatigued with the Resorts complete disregard of th
constantly being awakened by Trucks that are too large to adequately mane
traffic, trespassing on my property or damaging my wall.
It is beyond me why the Resort does not use alternative access through the
baffles me: as to why the Resort allows these rigs to generate the incredible
white sitting on your property in the loading bay.
f
peace and quiet was shattered at
ssic Party rental rig. These trucks
rates. I registered the noise level
el below seventy four.
LQMC. I am further fatigued with
rer on Fernando without blocking
rr of the Resort, and it further
I have previously described
I simply ask you how you would like to be constantly awakened by the noise, of illegal trucks or listen to the
noise of and sounds of your property being destroyed, or smell the acrid diesel fumes of interstate trucks idling
in your personal driveway?
1 have also previously brought your failure to maintain the easement in reasonable fashion and I renew my
request that you immediately take the necessary steps to restore Fernando to a reasonable road standard. I
have also repeatedly brought the interference with the quiet use of my property to the Resort's attention. I do
so again. Please govern yourself accordingly.
rely,
Steve Davis
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Dear Mr. Swedish, Enclosed please fs d a letter and pictures I have provided the City. 1 am at a loss as to why
the Resort refuses to use alternative a ss in order to avoid the ear shattering noise that your trucks inflict on
me, my family and guests.
Furthermore, trucks are allowed to sit its your loading dock idling and with their refrigeration units on causing
long term decibel readings on my property in the seventies and sometimes as much as "eighty. I again renew
m my request that you reedy this con ' us health and safety nuisance.
1 also renew my request that you imme liately stop trucks under the control of the Resort from continually
trespassing on my property and contin iously damaging my wall.
Finally, as you know, because of Resort abuse Fernando is in a complete state of disrepair. I hereby again
request that you immediately repair the road as is your duty pursuant to your. easement. I have repeatedly
requested relief and t have been ignored.
Sin
�k
Steve Devi
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