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2010 03 16 RDARedevelopment 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, MARCH 16, 2010 3:00 P.M. Closed Session / 4:00 P.M. Open Session Beginning Resolution No. RA 2010-004 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Franklin, Henderson, Sniff, Chairperson Evans 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 1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY IDENTIFIED AS APN 600-020- 038, AND -039. PROPERTY OWNERS/NEGOTIATORS: DESERT CITIES DEVELOPMENT, INC., MICHAEL SHOVLIN AND VIP MOTOR CARS, LTD., JERRYJOHNSON. Redevelopment Agency Agenda March 16, 2010 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED SOUTHWEST OF THE INTERSECTION OF HIGHWAY 111 AND LA QUINTA CENTRE DRIVE. PROPERTY OWNER/NEGOTIATOR: DIRECT POINT ADVISORS, INC., MICHAEL HASTINGS. 3. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED ON THE WEST SIDE OF EISENHOWER DRIVE BETWEEN AVENUE 50 AND AVENIDA FERNANDO. PROPERTY OWNER/NEGOTIATOR: PYRAMID PROJECT MANAGEMENT, KEN HOEPPNER. 4. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, DOUGLAS R. EVANS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTIES LOCATED AT 53-565 AVENIDA VALLEJO (APN 774-153-014), 53-775 AVENIDA ALVARADO (APN 774-122-016), AND TWO VACANT LOTS IN THE LA QUINTA COVE (APNs 774-144-011 AND 774-044-012). PROPERTY OWNER/ NEGOTIATOR: HABITAT FOR HUMANITY, FRED BELL. RECESS TO CLOSED SESSION RECONVENE AT 4:00 P.M. d-nn P_M_ 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 Redevelopment Agency Agenda 2 March 16, 2010 APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF FEBRUARY 16, 2010 CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTERS DATED MARCH 2 AND MARCH 16, 2010. 2. RECEIVE AND FILE TREASURER'S REPORT DATED JANUARY 31, 2010. 3. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED JANUARY 31, 2010. 4. ADOPTION OF A RESOLUTION MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) AND AUTHORIZING THE EXPENDITURE OF FUNDS TOWARD THE CITY'S TRAFFIC SIGNAL SYNCHRONIZATION IMPROVEMENTS AT VARIOUS LOCATIONS. 5. RATIFICATION OF APPROVAL OF PROFESSIONAL SERVICES AGREEMENT (PSA) WITH MSA CONSULTING, INC. FOR ENGINEERING SERVICES FOR THE DUNE PALMS/HIGHWAY 111 PROJECT AND APPROPRIATION OF FUNDS. 6. APPROVAL OF AMENDMENT NO. 2 TO THE LA QUINTA PALMS REALTY CONTRACT FOR RESIDENTIAL PROPERTY MANAGEMENT SERVICES FOR THE LA QUINTA RENTAL HOUSING PROGRAM AND EXTENSION OF THE CONTRACT FOR TWO YEARS TO 2013. BUSINESS SESSION - NONE STUDY SESSION — NONE CHAIR AND BOARD MEMBERS' ITEMS — NONE PUBLIC HEARINGS — NONE 003 Redevelopment Agency Agenda 3 March 16, 2010 ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on April 6, 2010, commencing with closed session at 3:00 p.m. and open session at 4:00 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 March 16, 2010, 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 March 12, 2010. DATED March 12, 2010 VERONICA J ONTECINO, City Clerk City of La Quinta, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. 004 Redevelopment Agency Agenda 4 March 16, 2010 � T F z U GE`y OF Ttlf''9w AGENDA CATEGORY: RDA MEETING DATE: March 16, 2010 BUSINESS SESSION ITEM TITLE: Demand Register Dated CONSENT CALENDAR March 2, 2010 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated March 2, 2010 of which $217,733.37 represents Redevelopment Agency Expenditures PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA F U OF TtT4''9� AGENDA CATEGORY: RDA MEETING DATE: March 16, 2010 BUSINESS SESSION ITEM TITLE: Demand Register Dated CONSENT CALENDAR / March 16, 2010 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated March 16, 2010 of which $6,318,545.03 represents Redevelopment Agency Expenditures PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA «..� 006 a •� �� �v uutrw �FM OF T1�4'O COUNCIL/RDA MEETING DATE: March 16, 2010 AGENDA CATEGORY: ITEM TITLE: Receive and File Treasurer's Report as of January 31, 2010 RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and file. BUSINESS SESSION: CONSENT CALENDAR: av-. STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA ,...0 007 a ZP Qumrcu _tr CF,y OF 7'KP'�`V' AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: March 16, 2010 BUSINESS SESSION: ITEM TITLE: Receive and File Revenue and Expenditure Report for January 31, 2010 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File BACKGROUND AND OVERVIEW: Receive and File the January 31, 2010 Statement of Revenue and Expenditures for the La Quinta Redevelopment Agency. Respectfully submitted, '�A& John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Revenue and Expenditures Report, January 31, 2010 008 ATTACHMENT 1 LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 1: LOWIMODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Miscellaneous revenue Non Allocated Interest LORP-Rent Revenue Home Sales Proceeds Sale of Land Sewer Subsidy Reimbursements Rehabilitation Loan Repayments 2nd Trust Deed Repayment Williams Note Payment Transfer In TOTAL LOWIMOD TAX DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest - County Loan Interest Advance Proceeds Transfers In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND Pooled Cash Allocated Interest Non Allocated Interest Developer Agreement Funding Sale of Land Proceeds Rental Income Litigation Proceeds Transfers In TOTAL CAPITAL IMPROVEMENT 07/01/2009 - 01/31/2010 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 10,833,900.00 4,785,464.33 6,048,435.67 44.170% 68,700.00 3,180.62 65,519.38 4.630% 0.00 792.63 (792.63) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 225,000.00 148,437.06 76,562.94 65.970% 150,000.00 0.00 150,000.00 0,000% 0.00 0.00 0.00 0,000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 19,444.00 (19,444.00) 0.000% 0.00 0.00 0.00 0.000% 11,277,600.00 4,957,318.64 6,320,281.36 43.960% 43,335,700.00 19,081,884.27 24,253,815.73 44.030% 42,700.00 27,503.81 15,196.19 64.410% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 4,438,892.00 2,981,837.27 1,457,054.73 67.180% 47,817,292.00 22,091,225.35 25,726,066.65 46.200% 162,000.00 67,882.93 94,117.07 41,900% 32,500.00 18,709.36 13,790.64 57,570% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 2,639.33 (2,639.33) 0.000% 0.00 325,000.00 (325,000.00) 0.000% 0.00 0.00 0.00 0.000% 194,500.00 414,231.62 (219,731.62) 212,970% .w.. 009 `a LA OUINTA REDEVELOPMENT AGENCY ADJUSTED 01131/10 EXPENDITURES ENCUMBERED REMAINING BUDGET EXPENDITURE SUMMARY BUDGET PROJECT AREA NO 1: LOW/MODERATE TAX FUND:1.100.00 PERSONNEL 1,100.00 0.00 0.00 SERVICES 352.490.00 228,494.30 0.00 23995.E 1,95.6E BUILDING HORIZONS 0.00 275,000.00 0,00 138,988,08 0.00 0.00 0.00 136,011.92 LO RENTAL PROGRAM 0,00 0.00 0.00 000 2nd TRUST DEED PROGRAM BUILDING HORIZONS 250.000.00 0,00 0.00 250.000.00 LAND ACQUISITION 0.00 000 000 0.00 LOW MOD HOUSING PROJECTS 0.00 9,000.00 0.00 (9,000.00) FORECLOSURE 750,000.00 10,000.00 0.00 740,00000 REIMBURSEMENT TO GEN FUND 763,523.00 467,593,51 0.00 295,929.49 TRANSFERS OUT 4,478,892.00 2,98183727 0.00 1,497.054.73 TOTAL LOW/MOD TAX - DEBT SERVICE FUND: SERVICES 508,20000 473,766,03 0.00 34,0.00 BOND PRINCIPAL 3,135,000,00 7,144,062.00 3,135000,00 3,620,W3.13 0.00 0,00 0.00 3,523,118.87 BOND INTEREST INTEREST CITY ADVANCE 1,428,333.00 711.66666 0,00 716,666.34 PASS THROUGH PAYMENTS 24,722.621.00 8.772.965.77 0.00 15,949,65523 ERAF SHIFT 23,560,481.00 000 000 23.560,481,00 TRANSFERS OUT 3,961,932.00 2,5'1,604.97 0,00 27 1,470,3.03 TOTAL DEBT SERVICE _ CAPITAL IMPROVEMENT FUND: 1,100.00 000 0,00 L1000,9 PERSONNEL SERVICES 776,600.00 398,499.02 0,00 378,1098 LANDACDUISITION 0.00 0,00 0.00 0.00 ASSESSMENT DISTRICT 0.00 10,000.00 0,00 0.00 0.D0 0.00 0.00 10,000.00 ADVERTISING -ECONOMIC DEV 0,00 000 0,00 0.00 ECONOMIC DEVELOPMENT 0,00 0.00 0,00 00D BOND ISSUANCE COSTS 0,00 000 0,00 0,00 CAPITAL -BUILDING REIMBURSEMENT TO GEN FUND 356,491,00 217.224.38 0,00 139.266.62 TRANSFERS OUT 42.310,767 00 417 506.32 0.00 41,893,260.68 TOTAL CAPITAL IMPROVEMENT .w. r 010 .:Cl LA QUINTA REDEVELOPMENT AGENCY REVENUE SUMMARY PROJECT AREA NO. 2: LOW/MODERATE TAX FUND: Tax Increment Allocated Interest Non Allocated Interest Wash St Apts Interest Income WSA Fed Govt Assistance Pymts WSA Fed Govt Interest Rate Subsidy Developer funding Wash St Apts Rental Income Wash St Apts Other Revenues 2nd Trust Deed Repayment ERAF Shift - Interest Sale of Land Transfer In TOTAL LOWIMOD TAX 2004 LOWIMODERATE BOND FUND: Allocated Interest Home Sale Proceeds Non Allocated Interest Transferin TOTAL LOW/MOD BOND DEBT SERVICE FUND: Tax Increment Allocated Interest Non Allocated Interest Interest Advance Proceeds Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: Allocated Interest Non Allocated Interest Misc Revenue Sale of land Transfers In TOTAL CAPITAL IMPROVEMENT 0710112009 - 01/31/2010 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 5,668,000.00 2,580,449.98 3.087,550.02 45.530% 168.100.00 35,042.43 133,057.57 20.850% 0.00 0.00 0.00 0.000% 3,600.00 1,077.68 2,522.32 29.940% 451,400.00 148,387.00 303,013.00 32.870% 46,800.00 0.00 46,800.00 0.000% 0.00 0.00 0.00 0.000% 163,300.00 58,795.12 104,504.88 36.000% 4,200.00 2,700.20 1,499.80 64.290% 0.00 23,444.00 (23,444.00) 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 6,505,400.00 2,849,896.41 3,655,503.59 43.810% 0.00 0.00 0.00 0,000% 0.00 0.00 0.00 0.000% 17,500.00 10,530.64 6,969.36 60A80% 0.00 0.00 0.00 0.000% 17,500.00 10,530.64 6,969.36 60.180% 22,671,800.00 10,308,928.92 12,362,871.08 45.470% 140,000.00 30,175.88 109,824.12 21.550% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 1,951,399.00 1,256,760.66 694,638.34 64.400% 24,763,199.00 11,595,865.46 13,167,333.54 46.830% 41,400.00 4,648.21 36,751.79 11230% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 41,400.00 4,648.21 36,751.79 11.230% 011 El LA OUINTA REDEVELOPMENT AGENCY ADJUSTED 01/31/10 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET PROJECT AREA NO. 2: LOWIMODERATE TAX FUND: PERSONNEL 0S7 0.00 709 00 SERVICES 361.00 500,361.00 0.00 287,966.13 WASH APTS OTHER EXPENSES 429.300.00 141,37087 141,330.00 0.00 27 287,966.27 U TRUST DEEDS 0.00 0.00 0,00 0.00 LOW MOD HOUSING PROJECTS LOW 3,000.00 0.00 0,00 3,000.00 FORECLOSURE ACQUISITION 250,00000 0.00 000 250,.00.00 VISTA DUNES PARK 0.00 0.00 0.00 0.00 LANDACQUISITION 0.00 0.00 0.00 WSA PRINIPROVIDENT LOAN 5.00 8,790.00 0.00 10.671.92 WSA PNINNSDA LOAN 10,671.00 0,00 00 WSA INTEREST/PROVID LOAN 29.149,00 174,611.00 7.40 0,00 85,851,60 AN WSA LOAN 12,790,08 0.00 61.820.92 BURSE EN TO REIMBURSEMENT TO GEN FUND 16,382.00 254,226,66 54,226.86 0.00 62,15 .1 1,7M.019.5 TRANSFERS OUT 143,138,00 12,143,138.00 1,409,118.49 0.00 10734,019.51 TOTAL LOWIMOD TAX 2004 LOW/MODERATE BOND FUND HOUSING PROGRAMS 824.000900 618,000.00 0.00 206,000.D0 LAND 0.00 0.00 0.00 000 TRANSFERS OUT 73174000 12143702471 000 2,875.442.47 TOTAL LOWIMOD BOND T55b.140DCT�T325.70 47i u W-3,U6fbdT.41 DEBT SERVICE FUND: SERVICES 000 14,772.54 BOND PRINCIPAL 120,00000 120000900 1519312.50 000 0.00 BONDI37 T 299,550.00 000 INTEREST CITY ADVANCE INTERS CITY 6569528,00 966,308900 966,308.62 690.22000 69q PASS THROUGH PAYMENTS 9.253938100 19,253,387 00 4,382.948.62 0DO 0.00 P432.3 14,870,432.38 TRANSFERS OUT 1.951939900 1,256,760.6fi 000 694,638.34 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT FUND: PERSONNEL 700.00 40.00 0.00 660.00 SERVICES 250,36000 65,920.59 000 1B49439,41 CAPITAL 0.00 0,00 0.00 0.00 ECONOMIC DEVELOPMENT ACTIVITY 000 0.00 0.00 0.00 REIMBURSEMENT TO GEN FUND 58,244.00 35.885.25 0.00 22,358.75 TRANSFERS OUT 3,303,371.00 254 ]27.86 000 3,048,643. 14 TOTAL CAPITAL IMPROVEMENT 012 5 T-,dr4laR" COUNCIL/RDA MEETING DATE: March 16, 2010 ITEM TITLE: Adoption of a Resolution Making Certain Findings Pursuant to Health and Safety Code Section 33445(a) and Authorizing the Expenditure of Funds Toward the City's Traffic Signal Synchronization Improvements at Various Locations RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the Redevelopment Agency of the City of La Quinta making certain findings pursuant to Health and Safety Code Section 33445(a) and authorizing the expenditure of funds toward the City's traffic signal synchronization improvements at various locations. FISCAL IMPLICATIONS: In December 2009, Coachella Valley Association of Governments (CVAG) Executive Committee approved Congestion Mitigation Air Quality (CMAQ) funding for three of the five projects the City of La Quinta submitted in response to CVAG's May 2009 call for projects. These projects included the City's first priority project to synchronize the traffic signals on Eisenhower Drive from Coachella Drive to Calle Tampico, and on Calle Tampico from Eisenhower Drive to Washington Street; and the City's second priority project to synchronize the traffic signals on Adams Street from Westward Ho Drive to Fred Waring Drive, on Miles Avenue from Adams Street to Dune Palms Road, and on Dune Palms Road from Miles Avenue to Fred Waring Drive. The CMAQ funding is intended to assist in stimulating the Coachella Valley's economy and the projects approved to receive the CMAQ funds must be federally obligated within 12 months of their approval in the Federal Transportation Improvement Plan (FTIP). The City of La Quinta's projects were approved for listing in the FTIP on January 28, 2010. Considering the time necessary to negotiate the federal grant process at Caltrans, staff recommends all three projects be added to the City's Fiscal Year 2009/2010 Capital Improvement Plan (CIP) in order to expedite project development. 0 013 The following is the recommended funding, funding sources, and budgets for each of the projects that staff is recommending RDA funding be used as the local match: Project No. 1 — Traffic Signal Synchronization • Eisenhower Drive from Coachella to Calle Tampico; and • Calle Tampico from Eisenhower Drive to Washington Street CMAQ: $310,000 RDA Project Area Number 1: $141,000 Total Funding: $451,000 Engineering: $41,000 * Construction: $410,000 Total Budget: $451,000 Project No. 2 — Traffic Signal Synchronization • Adams Street from Westward Ho to Fred Waring Drive; • Miles Avenue from Adams Street to Dune Palms Road; and • Dune Palms Road from Miles Avenue to Fred Waring Drive CMAQ: $354,000 RDA Project Area Number 2: $86,000 Total Funding: $440,000 Engineering: $40,000 *Construction: $400,000 Total Budget: $440,000 *The costs associated with inspection, testing and survey are included within the construction budget. CHARTER CITY IMPLICATIONS: The proposed improvements are partially funded with federal funding. As such, the projects will be advertised with prevailing wage requirements. BACKGROUND AND OVERVIEW: In April 2009, CVAG issued a call for projects for CMAQ eligible improvements. The total amount of CMAQ funding available was $2,180,000. On May 5, 2009, the City Council adopted a Resolution of the City Council approving the submittal of an application to the Coachella Valley Association of Governments (CVAG) for partial funding for the following five projects in order of priority: 014 Project No. 1 - Traffic Signal Synchronization • Eisenhower Drive from Coachella to Calle Tampico; and • Calle Tampico from Eisenhower Drive to Washington Street Project No. 2 - Traffic Signal Synchronization • Adams Street from Westward Ho to Fred Waring Drive; • Miles Avenue from Adams Street to Dune Palms Road; and • Dune Palms Road from Miles Avenue to Fred Waring Drive Project No. 3 - City Owned Property PM-10 Stabilization • Use of contract farming on undeveloped property at SilverRock • Planting of Bermuda and Sudan grass on undeveloped areas not being farmed Project No. 4 - New Traffic Signal • Design and construct a new traffic signal at the intersection of Dune Palms Road and Retail Center Drive Project No. 5 - New Traffic Signal • Design and construct a new traffic signal at the intersection of Madison Street and Avenue 54 On December 7, 2009, CVAG's Executive Committee approved CMAQ funding, in the amount of $992,000, toward City project priorities 1, 2 and 5. With regard to Project Nos. 1 and 2, general funds are not available to fill the gap between the CMAQ funding and the project costs. In order for the project to proceed, the use of RDA funding is necessary. These projects will provide a direct benefit to Project Area Nos. 1 and 2 by improving the flow of traffic and reducing the idling of vehicles at intersections. The portion of the improvements on Eisenhower Drive that are not within the boundaries of Project Area No. 1 provide a direct benefit to Project Area No. 1 since the synchronization of the adjoining traffic signals is necessary to improve the flow of traffic and eliminate delays. The projects are consistent with the 5-year Implementation Plan recently adopted by the Redevelopment Agency. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: Adopt a Resolution of the Redevelopment Agency of the City of La Quinta making certain findings pursuant to Health and Safety Code Section 33445(a) and authorizing the expenditure of funds toward the City's traffic signal synchronization improvements at various locations; or 2. Do not adopt a Resolution of the Redevelopment Agency of the City of La Quinta making certain findings pursuant to Health and Safety Code Section 33445(a) and authorizing the expenditure of funds toward the City's traffic 0". r 015 signal synchronization improvements at various locations; or 3. Provide staff with alternative direction. Respectfully submitted, 0Imo thy R J nass P.E. Public Wor Dire r/City Engineer Approved for submission by: Thomas P. Genovese, Executive Director 016 RESOLUTION NO. 2010 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA CALIFORNIA MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445(a) AND AUTHORIZING THE EXPENDITURE OF FUNDS TOWARD THE CITY'S TRAFFIC SIGNAL SYNCHRONIZATION IMPROVEMENTS AT VARIOUS LOCATIONS WHEREAS, the City's Traffic Signal Synchronization Improvements are located in La Quinta Redevelopment Project Areas No. 1 and 2 (the "Project Areas"); and WHEREAS, the City's Traffic Signal Synchronization Improvements will be installed on Eisenhower Drive from Coachella Drive to Calle Tampico, on Calle Tampico from Eisenhower Drive to Washington Street, on Adams Street from Westward Ho Drive to Fred Waring Drive, on Miles Avenue from Adams Street to Dune Palms Road, and on Dune Palms Road from Miles Avenue to Fred Waring Drive; and WHEREAS, the construction of the City's Traffic Signal Synchronization Improvements would afford the Redevelopment Agency the opportunity to address the blighting conditions; and WHEREAS, there is inadequate funding within the City's General Fund or from other sources to construct the proposed Traffic Signal Synchronization Improvements; and WHEREAS, it would be in the best interest of the public to construct the City's Traffic Signal Synchronization Improvements. NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment Agency of the City of La Quinta, California, as follows: SECTION 1. The above recitals are true and correct and are adopted as the findings of the Agency Board. SECTION 2. The Agency Board hereby consents to Agency funding to be utilized for the City's Traffic Signal Synchronization Improvements. SECTION 3. Pursuant to Health and Safety Code Section 33445(a), the Agency finds and determines that: "..0 O11 Resolution 2010- Traffic Synchronization Adopted: March 16, 2010 Page 2 A. The construction of the City's Traffic Signal Synchronization Improvements are of benefit to the Project Areas and to the immediate neighborhoods in which the City's Traffic Signal Synchronization Improvements are located. B. No other reasonable means of financing the improvements are available to the community. C. The City's Traffic Signal Synchronization Improvements will assist in the elimination of one or more blighting conditions inside the Project Areas, and are consistent with the Redevelopment Agency's implementation plan adopted pursuant to Section 33490. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 16th day of March 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: LINDA EVANS, Chairperson La Quinta Redevelopment Agency ATTEST: VERONICA J. MONTECINO, CIVIC, Secretary La Quinta Redevelopment Agency (SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, Agency Counsel La Quinta Redevelopment Agency 018 Resolution 2010- Traffic Synchronization Adopted: March 16, 2010 Page 3 City of La Quinta, California � 019 "MMiJ T,*T oG.fwQa,ftrw COUNCIL/RDA MEETING DATE: March 16, 2010 ITEM TITLE: Ratification of Approval of a Professional Services Agreement (PSA) with MSA Consulting, Inc. for Engineering Services for the Dune Palms/ Highway 111 Project, and Appropriation of Funds RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Ratify approval of a Professional Services Agreement (PSA) (Attachment 1) with MSA Consulting, Inc. in the amount of $68,500 for engineering services associated with the Dune Palms/Highway 111 Project, and appropriate funding from Redevelopment Agency Project Area Number 2. FISCAL IMPLICATIONS: The following is the project funding and funding sources: RDA PA2 Low and Moderate- $34,250 Contract Services RDA PA2 Capital Projects $34,250 Contract Services Recommended Budget: $68,500 The following is the project budget: Topo Verification: $3,000 Utility Confirmation: $4,500 Conceptual Utility Plan: $6,000 Mass Grading Plan: $35,000 Revised $20,000 Hydrology/Hydraulics Report: Total: $68,500 020 As illustrated, adequate funding is available to support Staff's recommendation. BACKGROUND AND OVERVIEW: The project is located on Highway 111 between Dune Palms Road and Costco (Attachment 2) and is expected to include both an affordable housing component and a commercial component. The developer that is interested in the affordable housing component of the project has spent considerable time and effort in refining their site plan and is now interested in completing the preliminary design stage of development as soon as possible. MSA Consulting Inc. was engaged in May, 2008, by the Agency's redevelopment consultant, RSG, Inc., to complete a preliminary water quality management plan and a preliminary hydrology/hydraulics report for the site in support of California Environmental Quality Act (CEQA) and project specific plan work. Staff believes that it is in the Agency's best interest to approve this sole source PSA for topo verification, utility confirmation, conceptual utility plan and mass grading plan design and production of a revised hydrology/hydraulics report, for the following reasons: 1) MSA Consulting, Inc. is already familiar with this particular project, so no time will be lost as they "ramp up" for this next stage of development of the project. 2) MSA Consulting, Inc. performed admirably on the Coachella Valley Housing Coalition (CVHC) project, an RDA project that involved complicated design of utilities and water quality BMPs (Best Management Practice devices). This experience should facilitate this project's design. Contingent upon RDA Board approval of the PSA on March 16, 2010, the following is the anticipated schedule for the project : RDA Board approves PSA March 16, 2010 Deliverables complete May 28, 2010 FINDINGS AND ALTERNATIVES: The alternatives available to the Redevelopment Agency include: • 021 Ratify approval of a Professional Services Agreement (PSA) with MSA Consulting, Inc. in the amount of $68,500 for engineering services associated with the Dune Palms/Highway 111 Project, and appropriate funding from Redevelopment Agency Project Area Number 2; or 2. Do not ratify approval of a Professional Services Agreement (PSA) with MSA Consulting, Inc. in the amount of $68,500 for engineering services associated with the Dune Palms/Highway 111 Project, and appropriate funding from Redevelopment Agency Project Area Number 2; or 3. Provide staff with alternative direction. Respectfully submitted, T' othy R.Jo sson, Public Work rect ity Engineer Approved for submission by: y - Thomas P. Genovese, Executive Director Attachments: 1. Professional Services Agreement (PSA) 2. Vicinity Map 022 Attachment 1 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and MSA Consulting, Inc. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to Civil Engineering Services Related to the Dune Palms Road/Highway 111 Project, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work: By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). Last revised &30-09 - 1 - 023 1.5 Care of Work and Standard of Work. a. Care of Work. -'Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective. work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. b. Standard of Work. Consultant acknowledges and understands that the services and work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's services and work will be held to a heightened standard of quality and workmanship. Consistent with Section 1.4 hereinabove, Consultant represents to City that it holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed Sixty Eight Thousand Five Hundred Dollars ($68,500.00) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, but not exceeding the Contract Sum, or such Last revised 1-19-10 - 2 - G24 other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by.City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than thirty (30) days after invoices are received by the City's Finance Department. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance.. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "C" (the "Schedule of Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of .the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. Las[ revised 1-19-10 - 3 - 025 3.4 Term. The term of this agreement shall commence on March 3, 2010 and terminate on May 25, 2010 (initial term). Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WOR 4.1 Representative of Consultant. The following principals of Consultant are hereby designated, as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. Julian A. De La Torre, P.E. Vice President/Principal Engineer MSA Consulting, Inc. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson, P.E., Public Works Director/City Engineer or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 . Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Lastcevised 1-19-10 - 4 - 026 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, y perform the services required_ herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 5.0 INSURANCE AND INDEMNIFICATION. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured (on the general liability policy only) shall be delivered to and approved by City prior to commencement of the services hereunder. The following policies shall be maintained and kept in full force and effect providing insurance with minimum limits as indicated below and issued by insurers with A.M. Best ratings of no less than A -:VI: Commercial General Liability (at least as broad as ISO CG 0001) $1,000,000 (per occurrence) $2,000,000 (general aggregate) Commercial Auto Liability (at least as broad as ISO CA 0001) $1,000,000 (per accident) Errors and Omissions Liability $1,000,000 (per claim and aggregate) Workers' Compensation Last revised 1-19-10 - 5 - 021 (per statutory requirements) Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000,per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. All insurance required by this Section shall be kept in effect during the term of this Agreement .and shall not be cancelable without thirty (30) days written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. General Indemnification Provision. Last revised 1-19-10 - 6 - p. 028 1. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection, therewith and costs of investigation, to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, -employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. 2. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses) incurred in connection therewith and costs of investigation, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. 3. Standard Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this section from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set Last revised 1-19-10 - 7 - 029 forth herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. 4. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. b. Indemnification Provision for Design Professionals. 1. Applicability of Section 5.2(b). Notwithstanding Section 5.2(a) hereinabove, the following indemnification provision shall apply to Consultants who constitute "design professionals" as the term is defined in paragraph 3 below. 2. Scope of Indemnification. To the fullest extent permitted by law, Consultant shall indemnify, defend, and hold harmless City and City's agents, officers, officials, employees, representatives, and departments ("Indemnified Parties") from and against any and all claims, losses, liabilities of every kind, nature and description, damages, injury (including, without limitation, injury to or death of an employee of Consultant or subconsultants), costs and expenses of any kind, whether actual, alleged or threatened, including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation, that arise out of, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of Consultant, any subconsultant, anyone directly or indirectly employed by them or anyone that they control. 3. Design Professional Defined. As used in this Section 5.2(b), the term "design professional" shall be limited to licensed architects, registered professional engineers, licensed professional land surveyors and landscape architects, all as defined under current law, and as may be amended from time to time by Civil Code § 2782.8. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may -at its sole option: Last revised 1-19-10 .8 - O $ O a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion Lest revised 1-19-10 - 9 - .„. f, 031 for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by. City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to. City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project that is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or Last revised 1-19-10 - -10- ,0. r 032 other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to City, If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. Iastr ised 1-19-10 - - 11 - „. r 033 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as "a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement.. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. Last revised 1-19-10 - 12 - ".• n , 034 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an Last revised 1-19-10 - 13 - 035 immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.7. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover, damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Last revised 1-19-10 - 14- 036 Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. Lest rcvised 1-19-10- 037 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice "demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in.writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: MSA Consulting, Inc. Attention: Julian A. De La Torre, P.E. Vice President/Principal Engineer 34200 Bob Hope Drive Rancho Mirage, CA 92270 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. Last revised 1-19-10 -16- 038 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager ATTEST: Veronica J. tecr G in o, CMC, City Clerk APPROVED AS TO FORM: // // - Katherine Jens , City Attorhey CONSULTANT: MSA Consulting, Inc. Name: jul an A De La Torre P F C43880 exp. 6/30/11 Title: Vice -President /Principal. F,ngineer Date: February 23 2010 Date Last revised 1.19-10 - 17- » 39 0 C LAfl NIN1a'e,�;, F x�:YLl�iliyHS.T� V^itl Exhibit A Scope of Services w.ft l Mr. Im immkdn. Ottr, (. eft r �i,'Ff 16i 'j . g t tg Prested Camwiff."i Inc (V ) [s pf"'idd to pravido you with this praposw f(w Cw�ii ErrgirreeelServirm aW' fA Oune Ps thTo + h�Vy, 111 ik#ft�tdamg Hwsitrg ptrj d±Cf ctff'�rgrr�¢�Y t� Exhibit B Schedule of Compensation Payment shall be on a "Fixed Fee" basis in accordance with the Consultants Schedule. of Compensation attached herewith for the work tasks performed in conformance with Section 2.2 of the Agreement. Total compensation for all work under this contract shall not exceed Sixty eight thousand five hundred dollars ($68,500.00) except as specified in Section 1.6 - Additional Services of the Agreement. Last revised 6-3M9 043 Exhibit C Schedule of Performance Consultants shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the term of this agreement. Last revised 6-30-09 044 Exhibit D Special Requirements None. Last Mvised 6-30-09 045 Attachment 2 DUNE PALMS ROAD HIGHWAY III PROJECT R, VICINITY MAP NOT TO SCALE `�• 046 0 S � 4 �C' 9WSW �OF 1 COUNCIL/RDA MEETING DATE: March 16, 2010 ITEM TITLE: Approval of Amendment No. 2 to the La Quinta Palms Realty Contract for Residential Property Management Services for the La Quinta Rental Housing Program and Extend the Contract for Two Years to 2013 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Amendment No. 2 and extend the Contract two additional years to 2013 for the La Quinta Palms Realty Contract for residential property management services for the La Quinta Rental Housing Program and authorize the Executive Director to execute the Amendment. FISCAL IMPLICATIONS: Currently, the contract allows a monthly management fee of $125 for each rental unit, a 5% construction management fee, and a 3% commission on the sale of an Agency - owned home. This proposed Amendment would allow a monthly fee of $75 per house to be charged for the management of each foreclosed home that is purchased until it is rented or sold. Adequate funds have been budgeted in Redevelopment Agency Account Number 245-9001-703.51-40, La Quinta Rental Program. BACKGROUND AND OVERVIEW: On February 3, 2009, the Agency Board extended the Agreement for Contract Services with La Quinta Palms Realty (LQPR) to February 2011 and increased the per unit management fee from $1 10 to $125 (the prior rate had been in effect since 2004). At this time staff is recommending Amendment No. 2 to the Contract and due to the timing (one year left on the Contract) staff is requesting the Agency Board consider extending the Contract two additional years to 2013 rather than bringing the Contract back to the Agency next year for Contract renewal discussion. In December 2009 staff approved Amendment No. 1 to the Contract to allow La Quinta Palms Realty to serve as the Agency's Real Estate Agent as part of the Agency's Affordable Housing Program. As this was a minor change the Amendment was approved by the City Manager. 047 In May 2009, staff presented a report to the Agency Board regarding the purchase, rehabilitation and sale of foreclosed single-family homes. The Board directed staff to establish a program wherein the Agency would purchase, rehabilitate and subsequently sell or rent foreclosed single-family homes. On October 6, 2009, the Board approved a Master Purchase and Sale Agreement with Bank -Owned Properties in Project Areas No. 1 and No. 2 to implement this program. Since then, staff has been working with LQPR to locate and purchase foreclosed homes. To date, three homes have been purchased. In working on the purchase of foreclosed homes and after reviewing the existing Contract, staff is recommending the Contract be amended as follows: • Eliminate the maximum number of units to be managed; • Add Home Foreclosure Purchases to the Scope of Services; Require the foreclosed homes be added to the Property List as they are acquired; and • Add a monthly management fee of $75 per house to the Schedule of Compensation for the maintenance and marketing of the houses until they are rented or sold. Lastly, as noted above, staff suggests the Contract be extended two additional years. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve Amendment No. 2 and extend the Contract two additional years to 2013 for the La Quinta Palms Realty Contract for residential property management services for the La Quinta Rental Housing Program and authorize the Executive Director to execute the Amendment; or 2. Do not approve the Amendment with La Quinta Palms Realty for residential property management services for the La Quinta Rental Housing Program; or 3. Provide staff with alternative direction. Respectfully submitted /l 'Gifrttti_ Douglas R. vans, Assistant City Manager — Development Services 048 Approved for submission by: l Thomas P. Genovese, Executive Director Attachment: 1. Contract Amendment No. 2 with La Quinta Palms Realty ,M ATTACHMENT #1 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES THIS AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES - PROPERTY MANAGEMENT SERVICES ("Amendment No. 2") is made and entered into as of the day of , 2010 ("Effective Date"), by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and LA QUINTA PALMS REALTY, a California corporation ("Contractor"). RECITALS A. On or about February 23, 2009, Agency and Contractor entered into that certain Agreement for Contract Services -Property Management Services with Contractor ("PMS"), pursuant to which Agency and Contractor agreed to the terms and conditions to provide those services related to residential property management and sales for Agency -owned Properties ("Properties"). B. Subsequently, the Agency and Contractor entered into Amendment No. 1 to the PMS ("Amendment No. 1"). Said Amendment provides that Contractor shall serve as the Agency's Real Estate Agent and handle the transactions necessary to acquire individual units to become part of this portion of the Agency's Affordable Housing Program and increased the per unit management fee from $110 to $125. All commissions and/or compensation to be pad by the Seller. C. Contractor and Agency now wish to amend the Agreement ("Amendment No. 2) to delete the number of houses that are to be managed and add a fee allowance for the maintenance and marketing of the foreclosed houses until they are added to the Contract for property management. AMENDMENT: In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: Section 1. Section 2.1 of the Agreement is replaced, in its entirety, with the following: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contactor shall be compensated One Hundred and Twenty-five Dollars ($125) per unit monthly (as identified in Exhibit A- 2 Property List), and Seventy-five Dollars ($75) for the management of each foreclosed unit in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein .. 050 by this reference, over the two (2) year term of the Contract, except as provided in Section 1.6. The method of compensation shall be as set forth in the Schedule of Compensation (Exhibit "C"). Section 2. Exhibit "A-1 Scope of Services" of this Agreement is amended to add the following: 6. Home Foreclosure Purchases. • Contractor shall serve as the Agency's sales agent to locate foreclosed homes in La Quinta that meet the Agency's needs for affordable housing. • Contractor shall be responsible for all escrow transactions necessary to purchase the house. • After the unit has been rehabilitated, the unit address shall be added to the Contractor's property management list. Section 3. Exhibit "A-2 Property List" of this Agreement is amended to add the new units that are acquired and rehabilitated by the Agency to the property management list. Section 4. Exhibit "C Schedule of Compensation" of this Agreement is amended to add the following sentence to the end of No. 1: A monthly management fee of $75 per unit is allowed for the management of each foreclosed home that is purchased until it is rented or sold, at which time the fee would change accordingly. Section 5. Except as expressly provided in this Amendment No. 2, all of the terms, conditions, and provisions set forth in the Agreement shall remain in full force and effect. Section 6. The Effective Date of this Amendment No. 2 shall be the later of the dates set forth next to the signatures of the parties hereto, after the parties hereto have signed this Amendment No. 2, which date shall be inserted into the preamble to this Amendment No. 2. Section 7. This Amendment No. 2 may be executed in counterparts, each of which, when all the parties hereto have signed this Amendment No. 2, shall be deemed an original. [END — SIGNATURE PAGE FOLLOWS] 051 IN WITNESS WHEREOF, the Agency and Contractor have signed this Amendment No. 2 on the respective dates set forth below. "Agency" LA QUINTA REDEVELOPMENT AGENCY By: Date: 2010 Thomas P. Genovese Executive Director ATTEST: Veronica Montecino, CMC, Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency "Contractor" Date: , 2010 LA QUINTA PALMS REALTY, a California corporation BE Its: Name: CG rp('�2 _ D ZP 129mz F`y OF7�' TO: HONORABLE CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: DOUGLAS R. EVANS, ASSISTANT CITY MANAGER -DEVELOPMENT SERVICES kK_ DATE: MARCH 16, 2010 SUBJECT: CONSENT CALENDAR ITEM NO. 6 — LA QUINTA PALMS REALTY CONTRACT Attached is the Contract Amendment No. 2 with the proposed term extension included should the Agency decide to approve the extension. The term extension is included in the staff report, but was not included in your Agenda packet. �. 053 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES THIS AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES - PROPERTY MANAGEMENT SERVICES ("Amendment No. 2") is made and entered into as of the day of , 2010 ("Effective Date"), by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and LA QUINTA PALMS REALTY, a California corporation ("Contractor"). RECITALS A. On or about February 23, 2009, Agency and Contractor entered into that certain Agreement for Contract Services -Property Management Services with Contractor ("PMS"), pursuant to which Agency and Contractor agreed to the terms and conditions to provide those services related to residential property management and sales for Agency -owned Properties ("Properties"). B. Subsequently, the Agency and Contractor entered into Amendment No. 1 to the PMS ("Amendment No. 1 "). Said Amendment provides that Contractor shall serve as the Agency's Real Estate Agent and handle the transactions necessary to acquire individual units to become part of this portion of the Agency's Affordable Housing Program and increased the per unit management fee from $1 10 to $125. All commissions and/or compensation to be pad by the Seller. C. Contractor and Agency now wish to amend the Agreement ("Amendment No. 2) to delete the number of houses that are to be managed and add a fee allowance for the maintenance and marketing of the foreclosed houses until they are added to the Contract for property management and extend the Contract for two additional years to 2013. AMENDMENT: In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: Section 1. Section 2.1 of the Agreement is replaced, in its entirety, with the following: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contactor shall be compensated One Hundred and Twenty-five Dollars ($125) per unit monthly (as identified in Exhibit A- 2 Property List), and Seventy-five Dollars ($75) for the management of each foreclosed unit in accordance with the "Schedule of 054 1 Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, over the two (2) year term of the Contract, except as provided in Section 1.6. The method of compensation shall be as set forth in the Schedule of Compensation (Exhibit "C"). Section 2. Section 3.4 of the Agreement is replaced, in its entirety, ,with the following:, 3.4 Term. Unless earlier terminated in accordance with Section 7.7 or Section 7.8 of this Agreement, this Agreement shall continue in full force and effect for two (2) years or until completion of the services, except as otherwise provided in the Schedule of Performance (Exhibit Section 3. Exhibit "A-1 Scope of Services" of this Agreement is amended to add the following: 6. Home Foreclosure Purchases. • Contractor shall serve as the Agency's sales agent to locate foreclosed homes in La Quinta that meet the Agency's needs for affordable housing. • Contractor shall be responsible for all escrow transactions necessary to purchase the house. • After the unit has been rehabilitated, the unit address shall be added to the Contractor's property management list. Section 4. Exhibit "A-2 Property List" of this Agreement is amended to add the new units that are acquired and rehabilitated by the Agency to the property management list. Section 5. Exhibit "C Schedule of Compensation" of this Agreement is amended to add the following sentence to the end of No. 1: A monthly management fee of $75 per unit is allowed for the management of each foreclosed home that is purchased until it is rented or sold, at which time the fee would change accordingly. Section 6. Except as expressly provided in this Amendment No. 2, all of the terms, conditions, and provisions set forth in the Agreement shall remain in full force and effect. Section 7. The Effective Date of this Amendment No. 2 shall be the later of the dates set forth next to the signatures of the parties hereto, after the parties hereto have signed this Amendment No. 2, which date shall be inserted into the preamble to this Amendment No. 2. b. �055 Section 8. This Amendment No. 2 may be executed in counterparts, each of which, when all the parties hereto have signed this Amendment No. 2, shall be deemed an original. IN WITNESS WHEREOF, the Agency and Contractor have signed this Amendment No. 2 on the respective dates set forth below. "Agency" LA QUINTA REDEVELOPMENT AGENCY By: Date: 2010 Thomas P. Genovese Executive Director ATTEST: Veronica Montecino, CMC, Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency "Contractor" LA QUINTA PALMS REALTY, a California corporation Date: , 2010 By: Name: Its: 056