2011 03 15 RDAeaf 4 4vadja
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, MARCH 15, 2011
3:00 P.M. Closed Session / 4:00 P.M. Open Session
Beginning Resolution No. RA 2011-008
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Evans, Franklin, Sniff, Chairperson Henderson
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
- NONE
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.
1. CONFERENCE WITH THE 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
Redevelopment Agency Agenda 1 MARCH 15, 2011 ' .' O ll
SOUTHWEST OF THE INTERSECTION OF HIGHWAY 111 AND LA QUINTA
CENTRE DRIVE. PROPERTY OWNER / NEGOTIATOR: TORRE NISSAN,
GEORGEVELARDE
2. CONFERENCE WITH THE 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 IDENTIFIED AS
APNs / PROPERTY OWNERS / NEGOTIATORS: 770-123-010 AND 006 / NIS
YIELD PARTNERS, LP, TED NEWELL; 770-124-009 / NISPERO PROPERTIES,
BOB HILL; 770-123-002, 003 AND 004 / VIRGINIA GARBUTT; 770-124-
002 AND 003 / JAMES F. KELLY TRUST; AND 770-124-007 / MICHAEL
FISCHER
3. CONFERENCE WITH THE 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 A PORTION OF 335± ACRES
LOCATED AT THE SOUTHWEST CORNER OF AVENUE 52 AND JEFFERSON
STREET. PROPERTY OWNER / NEGOTIATOR: COACHELLA VALLEY WATER
DISTRICT / STEVE ROBBINS
RECESS TO CLOSED SESSION
RECONVENE AT 4:00 P.M.
2rWeTsW-3FXA11
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
APPROVAL OF MINUTES OF MARCH 1, 2011
o^c2
Redevelopment Agency Agenda 2 MARCH 15, 2011
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 MARCH 15, 2011
2. RECEIVE AND FILE TREASURER'S REPORT FOR JANUARY 31, 2011
3. RECEIVE AND FILE TRANSMITTAL OF REVENUE AND EXPENDITURE
REPORT FOR JANUARY 31, 2011
4. APPROVAL OF THE TRANSFER OF WASHINGTON STREET APARTMENT
ASSETS, OBLIGATIONS, RENTAL INCOME AND EXPENDITURES TO THE LA
QUINTA HOUSING AUTHORITY
5. APPROVAL OF THE RATIFICATION OF ACTIONS TAKEN TO REPAY THE
REDEVELOPMENT AGENCY LOANS
6. APPROVAL OF AN APPROPRIATION FOR THE WASHINGTON STREET
APARTMENTS
7. ADOPTION OF A RESOLUTION AMENDING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2010-2011
8. APPROVAL OF A CONTRACT WITH THE ROSENOW SPEVACEK GROUP
FOR DEVELOPMENT AND IMPLEMENTATION SERVICES FOR THE
WASHINGTON STREET APARTMENTS REHABILITATION PROJECT
9. APPROVAL OF A RESOLUTION APPROVING A COST SHARING
AGREEMENT AMONG THE LA QUINTA REDEVELOPMENT AGENCY, THE
CITY OF LA QUINTA, AND THE COACHELLA VALLEY WATER DISTRICT
FOR THE RECONSTRUCTION OF THE COACHELLA CANAL, A REGIONAL
WATER CONVEYANCE SYSTEM, WITHIN THE SILVERROCK PROPERTY
AND MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33445 WITH RESPECT TO THE AGENCY'S EXPENDITURE
10. APPROVAL OF AN AMENDMENT OF DOMESTIC WATER AND SANITATION
SYSTEM INSTALLATION AND IRRIGATION SERVICE AGREEMENT WITH
THE COACHELLA VALLEY WATER DISTRICT FOR WELLSITE MITIGATION
REQUIREMENTS FOR SILVERROCK AND ADOPTION OF A RESOLUTION
MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
33445
0)03
Redevelopment Agency Agenda 3 MARCH 15. 2011
11. ADOPTION OF A RESOLUTION MAKING FINDINGS PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33445 APPROVING AGENCY FUNDING OF
THE ACQUISITION OF LAND IDENTIFIED AS APNs: 770-123-002, 003 AND
004, VIRGINIA EVANS GARBUTT; 770-123-006 AND 010, NIS YIELD
PARTNERS, LP, TED NEWELL; 770-124-002 AND 003, JAMES F. KELLY;
770-124-009, NISPERO PROP, BOB HILL; AND 770-124-007, MICHAEL A.
FISCHER
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
For all Public Hearings on the agenda, a completed "request to speak" form must be filed
with the City Clerk prior to consideration of that item.
1. JOINT PUBLIC HEARING AMONG THE CITY COUNCIL OF THE CITY OF LA
QUINTA, THE LA QUINTA REDEVELOPMENT AGENCY AND THE LA
QUINTA FINANCING AUTHORITY TO CONSIDER RESOLUTIONS
REGARDING THE ISSUANCE OF REDEVELOPMENT PROJECT AREAS 1 AND
2 TAXABLE BONDS AND RELATED DOCUMENTS
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on April 5,
2011 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.
'm,. Q?04
Redevelopment Agency Agenda 4 MARCH 15, 2011
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
15, 2011, 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 [I, 26i(
DATED: 0 • ( • 2-011
VERONICA J. MOMFECINO, ty 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.
0)05
Redevelopment Agency Agenda 5 MARCH 15, 2011
�a.
7 5
4iw�wim�
S
OF THk'9�
RDA MEETING DATE: March 15, 2011
AGENDA CATEGORY:
BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR 1
March 15, 2011
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
March 15, 2011 of which $6,354,610.77
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
a •�
o� o� X4Pau!Arry
40
Fy OF rnE0
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Receive and File Treasurer's Report
as of January 31, 2011
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 2--
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
•® V 0 7
(o
�lrFc =9�5�
`N OF
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Receive and File Revenue and Expenditure
Report for January 31, 2011
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 3
STUDY SESSION:
PUBLIC HEARING:
Receive and File the January 31, 2011 Statement of Revenue and Expenditures for the
La Quinta Redevelopment Agency.
Respectfully submitted,
Ix Q
John M. Falconer, Finance Director
Approved for submission by:
�G��i� V6%i'✓
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures Report, January 31, 2011
ATTACHMENT 1
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest.
Miscellaneous revenue
Non Allocated Interest
LQRP-Rent Revenue
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Williams Note Payment
Transferin
TOTAL LOW/MOD 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
07/01/2010 - 01/31/2011
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
8,802,408.00
4,354,311.96
4.448,096.04
49.470%
46,800.00
- 7,289.70
39,510.30
15.580%
0.00
1,117.53
(1,117.53)
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%
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%
23,029.00
23,029.00
0.00
100.000%
40,000.00
40,000.00
0.00
100.000%
9,062,237.00
4,425,748.19
4,636,488.81
48.840%
35,209,626.00
17,417,247,82
17,792,378.18
49.470%
6,600.00
1,804.10
4,795.90
27.330%
0.00
1,543.37
(1,543.37)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
28,378,127.00
3,019,679.27
25,358,447.73
10.640%
63,594,353.00
20,440,274.56
43,154,078.44
32.140%
113,600.00
56,872.11
56,727.89
50.060%
25,000.00
14,126.72
10,873.28
56.510%
250,000.00
6,499.00
243,501.00
2.600%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
8,900,000.00
0.00
8,900,000.00
0.000%
9,288,600.00
77,497.83
9,211,102.17
0.830%
I 2
LA OUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA N0. 1:
ADJUSTED 01/31/11 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOWIMODERATE TAX FUND:
PERSONNEL
000
0.DO
0,00
0.00
SERVICES
373 NO00
189,10827
COO
183,93173
LO RENTAL PROGRAM
0.00
0.00
0.00
a
2nd TRUST DEED PROGRAM
0.00
0.00
0.00
000
HABITAT FOR HUMANITY
250,000.00
000
0.00
250,000.00
LAND ACQUISITION
000
0.00
0.00
0.D0
LOW MOD HOUSING PROJECTS
0.00
0.00
BOO
0.00
FORECLOSURE
714,655.00
4,859.10
0.00
709.695.90
REIMBURSEMENT TO GEN FUND
947, 565.00
552,748.00
0.00
394,817.00
TRANSFERS OUT
6,]30346.00
3,591,121.31
0.00
3,139224.69
TOTAL LOWIMOD TAX
15
4,
DEBT SERVICE FUND:
SERVICES
486,600.X
386,144.87
0.00
100,455.13
BOND PRINCIPAL
3.330,000. GO
3,330,000.00
0.00
000
BONDINTEREST
6,941435. D0
3,523,119.3B
0.00
3,418,31562
INTEREST CITY ADVANCE
1.720,000.X
1,003,33359
0.00
716,656.41
PASS THROUGH PAYMENTS
20, 190,059.X
8,119, 325.28
000
12,070,733,72
ERAF SHIFT
4,855.193.00
000
0.OD
4,855,193.00
TRANSFERS OUT
12M3138.00
2,576,1209]
000
10,287,Ott03
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
PERSONNEL
000
0.00
BOO
0.00
SERVICES
700,900.00
216,54989
BOO
484,350.11
LAND ACQUISITION
0,00
0,00
0,00
0,00
ASSESSMENT DISTRICT
0.00
0.00
0,00
0.00
ADVERTISING -ECONOMIC DEV
000
0,00
0,00
0.00
ECONOMIC DEVELOPMENT
0,00
0.00
0.00
000
BOND ISSUANCE COSTS
000
0.00
000
COO
CAPITAL -BUILDING
COO
0,00
0.00
0,00
REIMBURSEMENT TO GEN FUND
509,493.00
248,906.00
0,00
26O58T00.
TRANSFERS OUT
51 871 941.0
450,979.62
0.00
51 420,961.38
TOTAL CAPITAL IMPROVEMENT
4.000
•64, 0 - 1 0 3
07/0112010 - 01 /31 /2011
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
Tax Increment
4,800,480.00
2,390,067.03
2,410,412.97
49,790%
Allocated Interest
50,800.00
35,028.04
15,771.96
68.950%
Non Allocated Interest
3,400.00
263.85
3,136.15
7.760%
Wash St Apts Interest Income
3,600.00
381.07
3,218.93
10,590%
WSA Fed Govt Assistance Pymts
451,400.00
259,927.00
191,473.00
57.580%
WSA Fed Govt Interest Rate Subsidy
46,800.00
0.00
46,800.00
0.000%
Developer funding
0.00
0.00
0.00
0.000%
Wash St Apts Rental Income
163,300.00
98,329.64
64,970.36
60.210%
Wash St Apts Other Revenues
4,200.00
2,465.99
1,734.01
58,710%
2nd Trust Deed Repayment
8,720.00
8,719.00
1.00
99.990%
ERAF Shift - Interest
0.00
0.00
0.00
0.000%
Sale of Land
0.00
0.00
0.00
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOWIMOD TAX
- 5,532,700.00
2,795,181.62
2,737,518.38
50.520%
2004 LOWIMODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Home Sale Proceeds
0.00
0.00
0.00
0.000%
Non Allocated Interest
8,700.00
4,344.81
4,355.19
49.940%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOW/MOD BOND
8,700.00
4,344.81
4,355.19
49,940%
DEBT SERVICE FUND:
Tax Increment
19,201,924.00
9,560,268.14
9,641,655.86
49.790%
Allocated Interest _
49,600.00
21,408.98
28,191.02
43.160%
Non Allocated Interest
0.00
3,379.34
(3,379.34)
0.000%
Interest Advance Proceeds
0.00
0.00
0.00
0.000%
Transfer In
4,647,648.00
2,264,493.66
2,383,154.34
48.720%
TOTAL DEBT SERVICE
23,899,172.00
11,849,550.12
12,049,621.88
49.580%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
10,000.00
5,033.28
4,966.72
50.330%
Non Allocated Interest
5,000.00
2,483.62
2,516.38
49.670%
Misc Revenue
0.00
0.00
0.00
0.000%
Sale of land
0.00
0.00
0.00
0.000%
Transfers In
4.300,000.00
0.00
4,300,000.00
0.000%
TOTAL CAPITAL IMPROVEMENT
4,315,000.00
7,516.90
4,307,483.10
0A70%
0-11
H
LA OUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
ADJUSTED 01/31111 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
LOW/MODERATE TAX FUND:
2004 LOW/MODERATE BOND FUND
PERSONNEL
0,00
0,00
000
0,00
SERVICES
473, 500.00
251,26&00
0.00
222,232,00
WASH ST ARTS OTHER EXPENSES
429,300.00
189,176 %
0,00
240,124.14
2NO TRUST DEEDS
0.00
0.00
0.OD
000
LOW MOD HOUSING PROJECTS
3,OD0.00
3,850.00
0.00
(850,00)
FORECLOSURE ACQUISITION
450,OOD.00
0.00
0,00
450,00000
VISTA DUNES PARK
000
Q00
0,00
0.00
LAND ACQUISITION
0.D0
0.00
000
0.00
WSA PRIN/PROVIDENT LOAN
27,525.00
15,776.99
000
11,74801
WSA PRIN/USDA LOAN
11,788,00
6,562.55
OAO
5,125.45
WSA INTEREST/PROVIDENT LOAN
126,949.00
74,333,10
0.00
52, 615.90
WSA INTEREST/USDA LOAN
73,4WC0
16,22609
0.00
57,267,91
REIMBURSEMENT TO GEN FUND
551634.00
321783,00
0.00
229,851.00
TRANSFERS OUT
12,546, 839.00
1347.690,95
0.00
111W,24805
TOTAL LOW/MOD TAX
HOUSING PROGRAMS 000 0.00 0.00 0.00
LAND 0,00 0.00 000 0.00
TRANSFERS OUT 7570700 1793702" 0.00 186940947
TOTAL LOW/MOD BOND rPl�l. �r$3,r0 17} 666 9d09.di
DEBT SERVICE FUND:
SERVICES
274,0X)00
215,555.28
D.00
58,44472
BOND PRINCIPAL
125,00000
125,000.00
0.00
0.00
BOND INTEREST
293,272 DO
148,237.50
0.00
145,034.50
INTEREST CITY ADVANCE
1,592,542. 00
966,308.00
0.00
626,2U W
PASS THROUGH PAYMENTS
16, 199,408.00
4,080,02961
0m
12.119,378,39
ERAF SHIFT
0,00
0,00
0,00
0.00
TRANSFERS OUT
6,251,993.00
1,268,838.66
0.00
4, 983,154.34
TOTAL DEBT SERVICE
0.
4
CAPITAL IMPROVEMENT' FUND:
PERSONNEL 0A0 000 0.00 O.W
SERVICES 172,150,00 29,873,34 0.00 142,276.66
CAPITAL 000 000 0.00 000
ECONOMIC DEVELOPMENT ACTIVITY 2,300,000.00 184,603.32 000 2,115, 396.68
REIMBURSEMENT TO GEN FUND 131,811.00 44,695.00 0.00 87.116.00
041+
5
CeitIVI 4 4V Qgbt&
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE.: Approval of the Transfer of Washington
Street Apartments Assets, Obligations, Rental Income
and Expenditures to the La Quinta Housing Authority
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR: L+
STUDY SESSION:
PUBLIC HEARING:
Approve the Transfer of Washington Street Apartments Assets, Obligations, Rental
Income and Expenditures to the La Quinta Housing Authority.
FISCAL IMPLICATIONS:
The Fiscal Year 2010-2011 Washington Street Apartment budgeted revenues are
$669,300 and budgeted expenditures are $669,056.
CHARTER CITY IMPLICATIONS:
1►67M
BACKGROUND AND OVERVIEW:
On October 31, 2008, the Redevelopment Agency acquired the Washington Street
Apartment buildings and land. In addition to the purchase price, the Agency assumed
an outstanding loan with Provident Bank and another loan with the United States
Department of Agriculture (USDA). The Agency has maintained the property
management contract with Hyder and Company who provides both on -site
management, and off -site accounting.
On February 15, 2011, the La Quinta Redevelopment Agency approved the transfer of
the Washington Street Apartments to the La Quinta Housing Authority. With this
transfer, staff is requesting that the other assets — primarily bank accounts, liabilities —
primarily the aforementioned loans, revenues — primarily a USDA rent subsidy , and
expenditures be transferred from the La Quinta Redevelopment Agency (Fund 246) to
the La Quinta Housing Authority (Fund (242).
0:13
In order to report all of the Fiscal Year 2010-2011 accounting activities of the
Washington Street Apartments in one fund, staff will also transfer the revenue already
collected and expenditures already disbursed from July 1, 2010 to March 15, 2011 in
the La Quinta Housing Authority Fund (242).
FINDINGS AND ALTERNATIVES:
The alternatives available to the La Quinta Redevelopment Agency include:
1. Approve the Transfer of Washington Street Apartments Assets, Obligations,
Rental Income and Expenditures from the Redevelopment Agency; or
2. Do not accept the Transfer of Washington Street Apartments Assets,
Obligations, Rental Income and Expenditures from the Redevelopment
Agency; or
3. Provide staff with alternative direction
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
�? 0 ' 14
Sep Q94�KrC4V
F`y of l'N4'� AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: March 15, 2011 BUSINESS SESSION:
ITEM TITLE: Approve the Ratification of Actions Taken CONSENT CALENDAR: _
to Repay the Redevelopment Agency Loans STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
As deemed appropriate by the Agency Board.
FISCAL IMPLICATIONS:
The fiscal implications of the early repayment of the Redevelopment Agency loans
resulted in the following:
A decrease in cash of $41,378,966.
A decrease of $ 1,135,302 in interest expenses related to the early repayment
of the loans in Fiscal Year 2010-2011, and $3.38 million thereafter.
A sale of nine acres of land identified for private use at Highway 111 for its
appraised value of $3,445,000 to the City of La Quinta General Fund and a
decrease of $136,825 for utility undergrounding on the site.
A sale of 86.95 acres of land identified for private use at SilverRock, at a
current value of zero, pending an appraisal which is in the process of being
completed. Once completed, this appraisal will determine the purchase price
that the General Fund will pay to the Redevelopment Agency.
An increase in cash of $925,192 from the sale of the Project Area No. 2 Fire
Developer Impact Fee (DIF) loan to the General Fund.
A reduction of $629,560 in Capital Improvement Project appropriations based
upon updated project information.
A reduction of an appropriation of $150,910 toward the "A" Street
Extension (Dune Palms to the Komar Center) Capital Improvement Project
now funded by the General Fund.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On February 1, 2011, the City Council directed the City Manager to repay the loans
made by the City of La Quinta to the La Quinta Redevelopment Agency, if it was in the
best interests of the City.
The outstanding balances as of February 1, 2011 were as follows:
Outstanding Loan Balances
Date
February 1, 2011
Fund
General Fund
RDA Debt Service Project Area No. 1
RDA Debt Service Project Area No. 2
$ 22,000,000.00
19,378,966.00
Total
$ 41,378, 966.00
On February 28, 2011 staff began this loan repayment process which was completed
on March 3, 2011. All loans between the City General Fund and the Redevelopment
Agency Project Area Debt Service No.1 and 2 Funds have now been repaid. During
this time, staff has made accounting entries to repay these loans from sources outlined
in the February 1 st and February 15, 2011 mid -year budget reports. The February 1,
2011 staff report identified that $5.48 million of the $19.38 million PA No. 2 loan
could not be repaid. Staff has identified additional funding sources to repay the loan
and is requesting ratification of the accounting entries taken to pay off the entire PA
No. 2 loan.
RDA Debt Service Project Area No. 1 Loans
Staff repaid all outstanding PA No. 1 loans on February 28, 2011 using available funds
as follows:
0216
Redevelop me nt Agency Project Area No. 1
Date
Amount
Balance Remaining
Description
February 1, 2011
February 28, 2011
$ 22,000,000.00
$ (22,000,000.00)
$ -
Paid from available resources
In addition to the loan repayment, staff has also established a Land Held for Resale at
SilverRock account in the General Fund to account for the future purchase of 86.95
acres of land identified for private use at SilverRock. The account has a current
balance of zero, pending an appraisal which is in the process of being completed.
Once completed, this appraisal will determine the purchase price that the General Fund
will pay to the Redevelopment Agency. The General Fund resources to purchase this
property will come from available General Fund unallocated reserves.
RDA Debt Service Project Area No. 2 Loans
Staff repaid all outstanding PA No. 2 loans on February 28, 2011 and March 3, 2011
using available funds and is requesting ratifications as follows:
Redevelop mentAgency Project Area No. 2
Date
Amount
Balance Remaining
Description
February 1, 2011
$
19,378,966.00
February 1, 2011
$
(2,193,468.00)
$
17,185,498.00
Paid from available resources
Feb mary 28, 2011
$
(11,400.000.00)
$
5,785,498.00
Paid from available resources
February 28, 2011
$
(365,989.00)
$
5,419,509.00
Ratification requested - 1
March 3, 2011
$
(3,445,000.00)
$
1,974,509.00
Ratification requested - 2
March 3, 2011
$
(136,825.00)
$
1,837,684.00
Rat cation requested - 3
March 3, 2011
$
(925,192.00)
$
912,492.00
Ratification requested - 4
March 3, 2011
$
(132,022.00)
$
780,470.00
Ratification requested - 5
March 3, 2011
$
(629,560.00)
$
150,910.00
Ratification requested - 6
March 3, 2011 1
$
(150,910.00)
$
- IRatification
requested - 7
Ratification requested — 1 $365,989
With the loan repayment of $11,400,000 on February 28', the $365,989 of interest
expense on the outstanding loan from March 1, 2011 to June 30, 2011 is no longer
required to be paid by the Redevelopment Agency. In addition, the General Fund will
no longer receive the interest income since the loan has been reduced.
Ratification requested — 2 $3,445,000
Staff has established a Land Held for Resale at Highway 1 1 1 account in the General
Fund to account for the future purchase of 9 acres of land identified for private use at
0D17
Highway 111. The account has a current balance of $3,445,000, based upon an
appraisal that was completed on March 2, 2011 with a March 1, 2011 value date.
The General Fund resources to purchase this property have come from available
General Fund unallocated reserves.
Ratification requested — 3 $136,825
As a result of the 9 acre Highway 111 purchase, staff has transferred the future
construction of the Highway 111 undergrounding utility project from the
Redevelopment Agency to the General Fund. The future resources to construct these
underground improvements will be added to the Land Held for Resale at Highway 111
account in the General Fund and will come from available General Fund unallocated
reserves.
Ratification requested — 4 $925,192
On March 1, 2011, the City Council and the Agency Board approved the sale of loans
made by the Agency to the City of La Quinta Developer Impact Fee (DIF) Funds, if
deemed appropriate by the City Manager/Executive Director. On March 3, 2011, the
City Manager/Executive Director approved the sale of the $925,192 in RDA PA No. 2
Fire DIF loans to the City.
Ratification requested — 5 $132,022
With the additional early loan repayments on March 3rd, the amount of interest
expense on the outstanding loan from March 4, 2011 to June 30, 2011 is no longer
required to be paid by the Redevelopment Agency. In addition, the General Fund will
no longer receive the interest income since the loan has been reduced.
Ratification requested — 6 $629,560
Staff has reviewed the Project Area No. 2 Capital Improvement Projects and identified
estimated savings in the followings projects:
Project
Estimated
Number
Proiect Description
Savings
1818
Jefferson Street Parkway Landscaping (Vista Grande to Westward Ho)
$ 434,858.00
1850
Miles Ave. Landscaping
$ 94,702.00
1841
Washington St Dual Left at Ave 48
$ 100,000.00
Total
$ 629,560.00
.1". 0 - 1 A
In the event that these estimated savings are not achieved, staff will return with a
future appropriation request.
Ratification requested — 7 $150,910
Lastly, in order to repay the remaining Project Area No. 2 loan amount, staff is
requesting that $150,910 of $462,784 appropriated for the "A" Street Extension
(Dune Palms to the Komar Center) be transferred to the General Fund.
Project
General
CIP
Number
Pr lest Description
I Fund
PA No. 2
1812
"A" Street Extension Dune Palms to Komar Center - new road
$ 150 910.00
1 (150,910.00)
Total
$ 150 910.00
1$ 150 910.00
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
Approve the Ratification of Actions Taken to Repay the Redevelopment Agency
Loans; or
2. Do not approve the Ratification of Actions Taken to Repay the Redevelopment
Agency Loans; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
homas P. Genovese, Executive Director
r•". 0319
ceit�t 4 664P Qa4krad
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Approval of an Appropriation for the
Washington Street Apartments
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: IO
STUDY SESSION:
PUBLIC HEARING:
Approve an appropriation of $3,362,058 for the rehabilitation of the Washington
Street Apartments from the 2004 Low- & Moderate -Income Housing Fund.
FISCAL IMPLICATIONS:
The following is the current Capital Improvement Project for the Washington Street
Apartments Rehabilitation Project as of February 28, 2011:
CITY OF LA OUINTA
WASHINGTON ST APTS REHABILITATION
1813
02/28/11
PRIOR
FY 10/11
PROJECT TO
PROJECT
YEAR
FY 10/11
Y.T.D.
DATE
FUNDING
FUNDING
BUDGET
FUNDING
BUDGET
FUNDING
FUNDING
DUE
PA LOW/MOD
7300000.01
21196.01
727880400
201820
2321421
727678580
TOTAL FUNDING
7300000.01
21196.01
7278 B0400
2131820
2321421
727678580
With the addition of $3,362,058 from available fund balances in the 2004 Low- &
Moderate -Income Fund (248-0000-290-00.00), the Fiscal Year 2010-2011
Washington Street Apartment Rehabilitation budget will increase to $10,640,082.
CHARTER CITY IMPLICATIONS:
None.
.e o��o
BACKGROUND AND OVERVIEW:
On October 31, 2008, the Redevelopment Agency acquired the Washington Street
Apartment buildings and land with the intent to rehabilitate the existing units. The
project will be completed in phases in an attempt to not disrupt the residents in the
Apartment units. The entire project is estimated to cost $15,000,000 when all phases
are completed, so additional funds will be required in the future.
The 2004 Low- and Moderate -Income Housing Funds are the remaining bond proceeds
since the Agency's Wolff Waters Place Apartment obligation has now been completed.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an appropriation of $3,362,058 for the rehabilitation of the
Washington Street Apartments from the 2004 Low- & Moderate -Income
Housing Fund; or
2. Do not approve an appropriation of $3,362,058 for the rehabilitation of the
Washington Street Apartments from the 2004 Low- & Moderate -Income
Housing Fund; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
4 XfvQuulrw
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Adoption of a Resolution Amending the
Investment Policy of the City of La Quinta for Fiscal
Year 2010-201 1
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 1
�1111 WW*X1c30
PUBLIC HEARING:
Adopt a Resolution of the City Council amending the Investment Policy for the La Quinta
Redevelopment Agency for Fiscal Year 2010-2011 .
PLEASE SEE CONSENT CALENDAR ITEM ON CITY COUNCIL AGENDA
0 " 2 2
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY AMENDING THE CITY OF LA QUINTA
INVESTMENT POLICY FOR FISCAL YEAR 2010-2011
WHEREAS, policies were adopted by the La Quinta Redevelopment Agency in
Resolution No. 2010-006 on June 15, 2010; and
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's
investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or iy f ld throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio is
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy for Fiscal Year 2010-201 1; and
WHEREAS, the Investment Policy may be amended from time to time as
considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency
to adopt the amendments to the Fiscal Year 2010-201 1 Investment Policy (Exhibit A).
°®,. V 2 3
Resolution No. RDA 2011-
Amendment to the Investment Policy
Adopted: March 15, 2011
Page 2 of 2
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this 15th day of March, 2011 by the following vote,
to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
TERRY HENDERSON, Chairperson
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
e-" 0 2 4
EXHIBIT A
Amended Language - in Strike out and bold
Section V
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five ten years. For FY 2010/201 1, the amount of such
funds is projected to be " $30 million. Funds up to that amount may be
invested in U.S. Treasury bills, notes and bonds, Local Agency Obligations,
and California Local Agency Obligations maturing between 3 and b 10 years.
For all other funds, investments are limited to three years maximum maturity,
with no more than 25% of surplus funds invested in maturities exceeding
two years and less than three years
Section X and Appendix A
x PERMISSIBLE DEPOSITS AND INVESTMENTS
California Local Agency Obligations as an Investment
Permissible deposits and investments are summarized below. A more
comprehensive list is included in Appendix A.
Permissible Investments and
Limitations
Maximum
Maximum
(See Appendix A for Additional
Allocation
Maturity
Restrictions
Information)
Checking & Savings Accounts FDIC Insured & Sweep
o
85 /o Portfolio
Current /
Sweep Account:
U.S. Treasuries
Accounts
On Demand
and/or GSE's
<_ $250,000,
Certificates of Deposit
60% Portfolio
3 Years
including interest
per institution
U.S. Treasury Bills, Notes and Bonds, and
<-$4,0000,000
Government National Mortgage Association(GNMA)
100% Portfolio
3 10Years
<=$30,0000,000
Securities
maturing 3-610
Yrs
<=$40000;000
<=$30,0000,000
Local Agency Bonds/Caliromia Local Agency
30% Portfolio
Wears
maturing 3-5 10
Yrs
Obligations
Long term A, A2,
A- or better
p �5
Permissible Investments and
Limitations
Maximum
Maximum
(See Appendix A for Additional
Allocation
Maturity
Restrictions
Information)
U.S. Government Agency Securities and Federal
Government Securities
(except collateralized mortgage obligations (CMO's) or
structured notes which contain embedded rate options):
- Federal National Mortgage Association (FNMA)
$20,000,000
3 Years
- Federal Home Loan Bank Notes & Bonds (FHLB)
$25,000,000
3 Years
- Federal Farm Credit Bank (FFCB)
$30,000,000
3 Years
- Federal Home Loan Mortgage Corporation (FHLMC)
$20,000,000
3 years
Prime Commercial Paper including Temporary Liquidity
15% Portfolio
90 Days
$5.000,000 per
Guarantee Program (TLGP)
issuer maximum.
Local Agency Investment Fund (LAIF)
30% Portfolio
Current /
$40 million
On Demand
per account.
Money market mutual funds regulated by the SEC that
Current /
Maintain $1 per
consist only of US Treasury Securities or GSE's and
a
20% Portfolio
On Demand
share par value
maintain a per value of $1 per share
$5,000,000 max
Corporate Notes
10%
3 Years
per issuer AA rated
or better
Corporate Notes -Temporary Liquidity Guarantee
u
20%
3 Years
$10,000,000 max
per issuer, AA
Program (TLGP)
rated or better.
Requires
Professionally Managed Account
10%
3 Years
City Council -
Approved RFP
Long -Term Scale
S&P AAA, AA +, AA, AA-, A +, A
Moody's Aaa, Aa 1, Aa2, Aa3, A 1, A2
Fitch AAA, AA+, AA, AA-, A+, A
Appendix A
Unauthorized Investments
The City Treasurer will not be permitted to invest in the following types of investments
(see Footnote 2 and "State Code Permitted Deposits And Investments Not Authorized
By The City's Investment Policy", below).
- Repurchase Agreements
- Bankers Acceptances
- Negotiable Certificates of Deposit
- Mutual Funds other than money market mutual funds
- Preferred and Common Stock
- State afld I eGaF Government Indebtedness
- Asset Backed Securities
'•"- 03 0L 6
Reverse Repurchase Agreements
Derivatives
The above list of unauthorized deposits and investments is not meant to be all-inclusive.
Only those deposits and investments listed in the "Permissible Deposits and Investments"
section of the Policy are permissible.
3. U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage
Associations (GNMA) securities - The City may invest in U.S. Treasury bills,
notes, and bonds, and GNMA securities directly issued and backed by the
full faith and credit of the U.S. Government. The City's Investment Policy
limits investments in U.S. Treasury issues and GNMA's to 100% of the
portfolio.
The City's Investment Policy does not allow investments in 1eeal and state
indebtedness
New Sertinn
10. Local Agency Bonds and California Local Agency Obligations - The City
may invest in California local agency obligations pursuant to 56301(a) and
53601 (e)• 53601 (a) pertains to investing in bonds issued by a local agency,
department, board, agency or authority of the local agency. 53601 (a)
pertains to investing in bonds and other defined indebtedness of a local
agency or department, board, agency or authority of the local agency within
the State of California.
The City's Investment Policy limits investments in Local Agency Bonds and
California Local Agency obligations to 30% of the portfolio with up to a ten
year maximum maturity. In addition, The Agency obligations must be
invested in the long term rating of A, A2, A or better by S&P, Moody's or
Fitch is met.
In the case of an initial public offering, including refinancings, the Treasurer
may purchase directly from the Bond Underwriter. ff the case of secondary
issues, the Treasurer will rely of the approved Broker/Dealers.
L 7
Tdf 444"
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Approval of a Contract with the
Rosenow Spevacek Group for Development and
Implementation Services for the Washington Street
Apartments Rehabilitation Project
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _Q
CONSENT CALENDAR: �7
STUDY SESSION:
PUBLIC HEARING:
Approve a contract with the Rosenow Spevacek Group (RSG) to develop and
implement the Washington Street Apartment project with minor modifications to be
approved by the Executive Director (Attachment 1).
FISCAL IMPLICATIO
The proposed contract amount is $1,471,200. This proposal consists of two parts:
RSG's cost to implement the Work Program ($773,200), and costs relating to sub -
consultant work ($698,000) to prepare engineering, design work and needed studies.
These funds have been budgeted in the 2009-2010 Capital Improvement Program,
Washington Street Apartment Rehabilitation.
BACKGROUND AND OVERVIEW:
The Agency purchased the Washington Street Apartments in 2008. The property's
72 units are currently restricted to very -low income seniors and special needs residents
pursuant to previous financial assistance from the federal government, acting through
the United States Department of Agriculture Rural Development. The Agency and
Housing Authority are undertaking a multi -phased, multi -year project to substantially
rehabilitate the units and record additional affordability covenants. The Agency and
Housing Authority also plan to develop a new low-income senior housing complex on
an adjacent vacant lot in the future.
Due to the State budget concerns, staff has been working on transferring Agency -
owned property to the Housing Authority. It was not possible to transfer the
Washington Street Apartments due to restrictions arising from the Rural Development
loan previously provided to the project. Agency Counsel is therefore, recommending
the Housing Authority be added to the title of the property, which is in process.
Over the past year, staff has been working with RSG to prepare site plans and has
completed numerous studies in preparation of rehabilitating the existing 72 units, and
adding approximately 26 new units.
Because of the projects magnitude, staff requested RSG prepare a proposal to develop
and implement the Washington Street Apartment project. RSG's proposal includes
design development, coordination with Rural Development to add the 26 new units to
its rental subsidy program, entitlement processing, relocation assistance, utility plans,
permits, coordination, construction management, and final disposition. In addition,
RSG would conduct a Request for Qualifications selection process to retain and
subcontract with various firms for architectural and landscape design, engineering and
surveying, soils testing, and required environmental studies.
Per the City's Municipal Code Section 3.32.050(C)), the City Council may authorize
award and execute service contracts with no competitive proposals where experience
with the proposed service provider has demonstrated competence and satisfactory
performance or in the renewal or renegotiation of existing contracts for continuing
services.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve a Contract with the Rosenow Spevacek Group to develop and
implement the Washington Street Apartment project with minor modifications to
be approved by the Executive Director; or
2. Do not approve the Contract with RSG; or
3. Provide staff with alternative direction.
Respectfully submitted,
Douglas R. vans
Assistant City Manager — Development Services
Approved for submission by:
/PVOZ�J IzLrv�
Thomas P. Genovese, Executive Director
Attachment: Contract
ATTACHMENT
DEVELOPMENT AND IMPLEMENTATION SERVICES CONTRACT
TFIIS CONTRACT FOR CONTRACT SERVICES (the "Contract") is made and entered
into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation,
the LA QUINTA REDEVELOPMENT AGENCY ("Agency") and Rosenow Spevacek Group
("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
Contract, Consultant shall provide those services related to the rehabilitation of the senior
affordable housing project commonly known as the Washington Streets Apartment development
(the "Development"), and the development of twenty-six (26) new affordable dwelling units at
the Development, 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 Contract.
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 Contract.
1.4 Familiarity with Work. By executing this Contract, 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 Contract.
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).
1.5 Care of Work and Standard of Work.
a. Care of Work. Consultant shall adopt reasonable methods during
the life of this Contract 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 or Agency, except such losses or damages as may be caused by City's or Agency's
own negligence. The performance of services by Consultant shall not relieve Consultant from
882/015610-0041 0131
1160309.03 a03/1I/II -
any obligation to correct any incomplete, inaccurate or defective work at no further cost to City
or Agency, 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 Contract 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 and Agency that it holds the necessary skills and abilities to satisfy
the heightened standard of work as set forth in this Contract.
1.6 Additional Services. In accordance with the terms and conditions of this
Contract, 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 total fee provided for in the Scope of
Services (the "Contract Sum") may be approved by the Contract Officer. Any greater increase
must be approved by the City Council and Agency Board.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Contract,
Consultant shall be compensated for the specific tasks set forth in the Scope of Services in the
amount of the Contract Sum. Notwithstanding the foregoing, however, the method of
compensation will include payment for time and materials based upon Consultant's rate schedule
as set forth in the Scope of Services. Compensation may include reimbursement for actual and
necessary expenditures for reproduction costs outside of Southern California, transportation
expense, overnight mail, messenger expense, and similar costs and expenses when and if
specified in the Schedule of Compensation. Subject to any additional work performed by
Consultant pursuant to Section 1.6 above, in no event shall the compensation collectively paid to
Consultant for the work and services required hereunder exceed the Contract Sum.
2.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall submit to Agency no later than the tenth (1Oth) working day of such
month, in the form approved by Agency'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 Contract. Agency will pay Consultant for
all expenses stated thereon which are approved by Agency pursuant to this Contract no later than
thirty (30) days after invoices are received by the Agency's Finance Director.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this
Contract.
G. 0"32
882/015610-0047
1160309.03 ON11/11
3.2 Schedule of Performance. All services rendered pursuant to this Contract
shall be performed diligently and within the time periods established in the Schedule of
Performance attached hereto and incorporated herein as Exhibit "C", Section 3.4.
3.3 Force Maieure. The time period specified in the Schedule of Performance
for perfornance of the services rendered pursuant to this Contract 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 or Agency, 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 Officers determination shall
be final and conclusive upon the parties to this Contract.
3.4 Term. The term of this Contract shall commence on March 15, 2011 and
shall terminate on the earlier of (i) the fourth anniversary of the commencement (e.g., March 15,
2015), or (ii) the date Consultant has completed all of the work set forth in the Scope of Services.
Notwithstanding the foregoing, nothing in this Section 3.4 shall be deemed to relieve Consultant
from performing the tasks herein within the timeframes set forth in the Schedule of Performance.
4.0 COORDINATION OF WORK
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:
1. Frank Spevacek
2. Kathleen Rosenow
a. It is expressly understood that the experience, knowledge,
capability, and reputation of the foregoing principals were a substantial inducement for Agency
and City to enter into this Contract. Therefore, the foregoing principals shall be responsible
during the term of this Contract 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
Agency and City.
4.2 Contract Officer. The Contract Officer shall be the Agency Executive
Director or such other person as may be designated by the Agency Executive Director. 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 or Agency to the Contract Officer. Unless otherwise specified herein, any approval of
City or Agency required hereunder shall mean the approval of the Contract Officer.
882/015610-004i
1160309.03 .03/11/11 -3 (�
�: A v
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 and Agency to enter into this Contract. Except as set forth in this
Contract, 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 and Agency. In
addition, neither this Contract nor any interest herein may be assigned or transferred, voluntarily
or by operation of law, without the prior written approval of City and Agency.
4.4 Independent Contractor. Neither City nor Agency, nor any of their
respective employees shall have any control over the manner, mode or means by which
Consultant, its agents or employees, perform the services required herein, except as otherwise set
forth. Consultant shall perform all services required herein as an independent contractor of City
and Agency and shall remain at all times as to City and Agency 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 or
Agency.
4.5 City/Agency Cooperation. City or Agency 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 or Agency.
5.0 INSURANCE, INDEMNIFICATION AND BONDS.
5.1 Insurance. Prior to the beginning of and throughout the duration of the
Work performed under this Contract, Consultant shall procure and maintain, at its cost, and
submit concurrently with its execution of this Contract, 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 Contract. 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 Agency, nor any of their insurers shall be required to contribute to any such loss.
A certificate evidencing the foregoing and naming City and Agency and their respective officers
and employees as additional insured shall be delivered to and approved by City and Agency prior
to commencement of the services hereunder.
The amount of Personal Injury/Property Damage Coverage insurance required hereunder
shall be $500,000 per individual; $1,000,000 per occurrence.
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 Contract. 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
0"34
882/015610-0047 _
1160309.03 a03/11/11 _4
for travel on public roads. The automobile insurance policy shall be primary for losses arising
out of Consultant's performance hereunder and neither City, the Agency nor their insurers shall
be required to contribute to such loss. A certificate evidencing the foregoing (and evidencing
insurance for hired and non -owned automobiles) and naming City and Agency and its officers
and employees as additional insured shall be delivered to and approved by City and Agency prior
to commencement of the services hereunder.
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.
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 Contract. 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 Contract.
Insurance procured pursuant to these requirements shall be written by insurers that are
admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a
minimum financial size VII.
All insurance required by this Section shall be kept in effect during the term of this
Contract 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, Agency, its officers, employees, contractors, subcontractors, or agents.
5.2 Indemnification.
a. General Indemnification Provision.
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 Agency and any and all of their respective officers, officials, members, employees,
representatives, and agents (collectively, the "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
of any subcontractors), 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 caused in whole or in part by any negligent or wrongful act, error or omission of
Consultant, its officers, agents, employees or subcontractors (or any entity or individual
882/015610-0047 _ p :! 3 5
1160309.03 a03/11/11 -5
that Consultant shall bear the legal liability thereof) in the performance of professional
services under this Contract.
2. Indemnification for Other Than Professional Liability.
Other than in the performance of professional services and to the fullest extent permitted
by law, Consultant shall indemnify, defend and hold harmless the Indemnified Parties
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 Contract by Consultant
or by any individual or entity for which Consultant is legally liable, including but not
limited to officers, agents, employees or subcontractors of Consultant.
3. Standard Indemnification Provisions. Consultant
agrees to obtain executed indemnity Contracts with provisions identical to those set forth
in this section from each and every subcontractor or any other person or entity involved
by, for, with or on behalf of Consultant in the performance of this Contract. 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 and/or Agency to monitor compliance with these requirements imposes no
additional obligations on City and/or Agency and will in no way act as a waiver of any
rights hereunder. This obligation to indemnify and defend the Indemnified Parties as set
forth herein is binding on the successors, assigns or heirs of Consultant and shall survive
the termination of this Contract and/or this section.
4. Indemnity Provisions for Contracts Related to
Construction. Without affecting the rights of City and Agency, under any provision of
this Contract, Consultant shall not be required to indemnify and hold harmless City and
Agency for liability attributable to the active negligence of City and Agency, provided
such active negligence is determined by Contract between the parties or by the findings
of a court of competent jurisdiction. In instances where City or Agency is shown to
have been actively negligent and where City's or Agency'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 or Agency.
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.
882/015610-0047
1160309.03 a03/11/11
2. Scope of Indemnification. To the fullest extent
permitted by law, Consultant shall indemnify, defend, and hold harmless 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 subcontractors), 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 subcontractor, 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 and Agency 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 and Agency may, at its sole option:
a. Obtain such insurance and deduct and retain the amount of the
premiums for such insurance from any sums due under this Contract.
b. Order Consultant to stop work under this Contract and/or withhold
any payment(s) which become due to Consultant hereunder until Consultant demonstrates
compliance with the requirements hereof.
C. Terminate this Contract.
Exercise of any of the above remedies, however, is an alternative to any other remedies City and
Agency 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 Contract.
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 the Indemnified Parties, 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.
882/015610-0047 _7_ On l
1160309.03 a03/11/11
2. No liability insurance coverage provided to comply with this
Contract 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 and
Agency 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 Consultant and
available or applicable to this Contract are intended to apply to the full extent of the policies.
Nothing contained in this Contract or any other Contract relating to the City and Agency 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 Agency 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 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 and/or agency, 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 or Agency's protection without
City's and. Agency'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 and Agency at or
prior to the execution of this Contract. 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 and/or Agency has the right but not the duty, to obtain any insurance they deem
necessary to protect their interests under this or any other Contract and to pay the premium. Any
premium so paid by City or Agency shall be charged to and promptly paid by Consultant or
deducted from sums due Consultant, at City/Agency (as applicable) option.
8. Certificate(s) are to reflect that the insurer will provide thirty (30)
days notice to City and Agency 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 Contract 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 and/or Agency.
10. Consultant agrees to ensure that subcontractors, and any other
party involved with the project who is brought onto or involved in the project by Consultant,
882/01561M047 _ 0 IN3 a
1160309,03 a03/11/11 -8
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 Contracts with subcontractors and others engaged in the project will be
submitted to City and Agency 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 other entity or person in any
way involved in the performance of work on the project contemplated by this Contract to self -
insure its obligations to City and/or Agency. If Consultant's existing coverage includes a
deductible or self -insured retention, the deductible or self -insured retention must be declared to
the City and Agency. At that time the City and Agency 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 and Agency each reserve 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 and Agency will negotiate additional
compensation proportional to the increased benefit to City and Agency.
13. For purposes of applying insurance coverage only, this Contract
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 Contract.
14. Consultant acknowledges and agrees that any actual or alleged
failure on the part of City or Agency to inform Consultant of non-compliance with any insurance
requirement in no way imposes any additional obligations on City or Agency 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, Agency, or any of the Indemnified Parties face an exposure from operations of any type
pursuant to this Contract. This obligation applies whether or not this Contract is canceled or
terminated for any reason. Termination of this obligation is not effective until City and Agency
execute a written statement to that effect.
16. Consultant shall provide proof that policies of insurance required
herein expiring during the term of this Contract 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 and Agency 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 Contract. Consultant expressly agrees not to
882/015610.0041 3 (3
1160309.03 a03/11/11 . �1
use any statutory immunity defenses under such laws with respect to any of the Indemnified
Parties.
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 Contract 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 Contract 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, Agency,
or Consultant for the cost of additional insurance coverage required by this Contract. Any such
provisions are to be deleted with reference to City and/or Agency. It is not the intent of City or
Agency to reimburse any third party for the cost of complying with these requirements. There
shall be no recourse against City and/or Agency for payment of premiums or other amounts with
respect thereto.
22. Consultant agrees to provide immediate notice to City and Agency
of any claim or loss against Consultant arising out of the work performed under this Contract.
Neither City nor Agency assume any obligation or liability by such notice, but have the right (but
not the duty) to monitor the handling of any such claim or claims if they are likely to involve
City or Agency.
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
Contract 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 Contract and enable the Contract Officer to
evaluate the cost and the performance of such services. Books and records pertaining to costs
shall be kept and prepared in accordance with generally accepted accounting principles. The
Contract Officer shall have full and free access to such books and records at all reasonable times,
including the right to inspect, copy, audit, and make records and transcripts from such records.
6.3 Ownership of Documents. Originals of all drawings, specifications,
reports, records, documents and other materials, whether in hard copy or electronic form, which
are prepared by Consultant, its employees, subcontractors and agents in the performance of this
Contract, shall be the property of Agency and shall be delivered to Agency upon termination of
882/015610.0047 -10_ .p 0 - 4 0
1160309.03 a03/11/11
this Contract 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 Agency
of its full rights of ownership of the documents and materials hereunder. Consultant shall cause
all subcontractors to assign to Agency any documents or materials prepared by them, and in the
event Consultant fails to secure such assignment, Consultant shall indemnify Agency for all
damages suffered thereby.
In the event Agency or any person, firm or corporation authorized by Agency 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, Agency 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
Contract 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 Agency or City, except as required by law or as authorized by Agency
or City (as applicable).
7.0 ENFORCEMENT OF CONTRACT.
7.1 California Law. This Contract shall be construed and interpreted both as
to validity and to performance of the parties in accordance with the internal laws of the State of
California. Legal actions concerning any dispute, claim or matter arising out of or in relation to
this Contract 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 Disnutes. In the event of any dispute arising under this Contract, 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
immediate danger to the health, safety and general welfare, City and/or Agency may take such
immediate action as City and/or Agency deem warranted. Compliance with the provisions of
this section shall be a condition precedent to termination of this Contract 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 and/or
Agency's right to terminate this Contract without cause pursuant to Section 7.8.
7.3 Retention of Funds. Agency may withhold from any monies payable to
Consultant sufficient funds to compensate City and/or Agency for any losses, costs, liabilities, or
damages Agency reasonably believes were suffered by City and/or Agency due to the default of
Consultant in the performance of the services required by this Contract.
882/0156104047 -1 1 _ o 41
1160309.03 a03/11/I1
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 and Agency's consent or approval of any act by Consultant requiring City's and
Agency's consent or approval shall not be deemed to waive or render unnecessary City's and
Agency's consent to or approval of any subsequent act of Consultant. Any waiver by any party
hereunder 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 Contract.
7.5 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Contract, the rights and remedies of the
parties are cumulative and the exercise by any 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 another party.
7.6 Legal Action. In addition to any other rights or remedies, any 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 Contract, to obtain injunctive relief, or to
obtain any other remedy consistent with the purposes of this Contract.
7.7 No Termination Prior To Expiration Of Term. Except for a termination by
Agency (i) pursuant to Section 5.3 hereof, for Consultant's failure to obtain the insurance
required by this Contract, (ii) pursuant to Section 7.8 hereof, for Consultant's default of the terms
hereof, or (iii) pursuant to other express provision of this Contract authorizing the Agency to
terminate this Contract, this Contract may not be terminated (with a termination described in
clause (i), (ii), or (iii) referred to hereinafter as a "Termination for Cause"). In the event of any
termination except for a Termination for Cause, Consultant shall, in addition to any other rights
or remedies available hereunder, have the right to bring a claim for damages for the entire
remaining unpaid balance of the Contract Sum.
7.8 Termination for Default of Consultant. If termination is due to the failure
of Consultant to fulfill its obligations under this Contract, City and/or Agency 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 Cit and/or Agency shall use reasonable efforts to mitigate such
damages), and Agency may withhold any payments to Consultant for the purpose of setoff or
partial payment of the amounts owed City and/or Agency as previously stated in Section 7.3.
7.9 Attorneys' Fees. If any party commences an action against another party
arising out of or in connection with this Contract, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs of suit from the losing party(ies).
8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION.
8.1 Non -liability of City and Agency Officers and Employees. No officer or
employee of City or Agency shall be personally liable to Consultant, or any successor in interest,
in the event or any default or breach by City or Agency or for any amount which may become
p,42
882/015610-0047 'A
116030903 a03/11111 -12-
_
due to Consultant or to its successor, or for breach of any obligation of the terms of this Contract
by City or Agency.
8.2 Conflict of Interest. No officer or employee of City or Agency shall have
any personal interest, direct or indirect, in this Contract nor shall any such officer or employee
participate; in any decision relating to the Contract 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 Contract.
8.3 Covenant against Discrimination. Consultant covenants by and for itself
and any successors in interest that there shall be no discrimination against or segregation of any
person, or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the performance of this Contract. Consultant shall take affirmative action to insure that
applicants are employed and that employees are treated during employment without regard to
any basis.
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:
ROSENOW SPEVACEK GROUP
Attention: Frank J. Spevacek
Principal
309 West Fourth Street
Santa Ana, CA 92701-4502
To Agency:
LA QUINTA REDEVELOPMENT AGENCY
Attention: Thomas P. Genovese
Executive Director
78-495 Calle Tampico
P.O. Box 1504
La Quinta, California 92247-1504
882/015610.0047 _13_ O ��
1160309.03 a03/11/11
9.2 Integrated Contract. This Contract contains all of the Contracts of the
parties and all previous understanding, negotiations and Contracts are integrated into and
superseded by this Contract.
9.3 Amendment. This Contract 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 Contract 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 Contract 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 Contract on behalf of the parties
hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and
that by so executing this Contract the parties hereto are formally bound to the provisions of this
Contract.
IN WITNESS WHEREOF, the parties have executed this Contract as of the dates stated
below.
882/015610-0047 _ 1 4 4
1160309.03 a03/11/11 -14 �A1i. O `�
CITY OF LA QUINTA
a California municipal corporation
Thomas P. Genovese, City Manager
ATTEST:
Veronica J. Montecino, CMC, City Clerk
APPROVED AS TO FORM:
M. Katherine Jenson, City Attorney
LA QUINTA REDEVELOPMENT AGENCY
a public body, corporate and politic
Date
Thomas P,, Genovese, Executive Director Date
ATTEST:
Veronica J. Montecino, CMC, Agency Secretary
APPROVED AS TO FORM:
M. Katherine Jenson, Agency Counsel
1821015610-0041'
1160309.03 a03/1I/II
ROSENOW SPEVACEK GROUP
"CONSULTANT"
By:_
Name:
Title:
_15_
0`45
Exhibit A
SCOPE OF SERVICES
This is RSG's Work Program to conduct a building assessment, and undertake design,
entitlement, bid preparation, resident relocation, construction management (if directed by the
Agency Executive Director or his or her designee) and final disposition activities pertaining to a
two phased, affordable senior housing development located at the corner of Washington Street
and Hidden River Road in the City of La Quinta. The La Quinta Redevelopment Agency and the
La Quinta Housing Authority own the 72 unit apartment complex (Apartments) that is in need of
substantial rehabilitation; further, the site can accommodate 26 new multi -family dwellings (New
Dwellings) and a community building. In order to substantially rehabilitate the Apartments, the
New Dwellings must first be constructed so that the very -low income residents of the
Apartments may be temporarily relocated to the New Dwellings. The New Dwellings combined
with the rehabilitated Apartments will preserve and expand the community's affordable housing
inventory.
Per the following Work Program RSG will assume full oversight of this endeavor, working as an
independent third party contractor. In this capacity, the RSG Project Team will:
• Hire and manage the design and engineering services to prepare construction plans and
specifications.
• Prepare cost estimates and construction schedules during the design process.
• Meet with the City's Washington Street Apartment Project Team to review design details,
cost estimates and timelines, and monitor construction and rehabilitation activities.
• Meet with Rural Development (RD) to review project details and process necessary
approvals.
• Define future disposition, locate and secure funding sources.
• Prepare and implement a temporary relocation plan.
• Process and secure entitlements.
• Apply for and attempt to secure Low Income Housing Tax Credits.
• Finalize construction documents and manage bid process.
• Provide complete construction management services for rehabilitation and new
construction.
• Facilitate temporary relocation of all existing apartment residents.
• Coordinate and manage the final disposition of the property.
882/015610-0047 o,46
1160309.03 a03/11/I1 ��
10.0 WORK PROGRAM
As part of its continued effort to increase and improve the community's supply of affordable
housing, the Agency purchased the Apartments which feature RD financing and operating
covenants. Per the RD operating covenants, the Apartments must be affordable to extremely
low and very low income senior and disabled adult households. The Apartments were
constructed in 1980 and need substantial rehabilitation to address health, safety and
performance issues, and to extend the life of the of the Apartments and of the development. The
site included vacant land that may accommodate the New Dwellings and a community building.
The New Dwellings will facilitate the temporary relocation of residents during a three phased
rehabilitation of the Apartments.
This Work. Program was prepared through consultation with engineers, designers, and RD, and
relied on our extensive knowledge of the site and buildings as experienced during the property
acquisition and conceptual design phase.
11.0 Buildinff and Site Improvement Concept/Plans
Site and building surveys combined with review of the existing building inspection reports
indicate that there are several safety and deferred maintenance items that should be addressed.
The initial focus will be ensuring that plans are developed to address all of the identified
deficiencies including existing site accessibility, dry rot and termite damage, roofing, inefficient
and failing windows, electrical and plumbing fixtures, appliances, HVAC and water heating
systems, cabinetry, counters, and floor coverings. Plans will address the rehabilitation of the
existing Apartments and the site in combination with adjacent new construction. Landscape
plans will be developed to improve site accessibility, reduce existing paved surface area, and
enhance outdoor community space. Durability, energy and water efficiency, and indoor air
quality will be guiding principles during the design process. Designing and engineering these
improvements will require architecture and engineering services. To accomplish this RSG will
retain the required professionals as sub -consultants and include their costs as part of this Work
Program. A list of the required professionals and the estimated contract cost are listed in the
Anticipated Cost section of this Scope of Services. For contracts over $5,000 RSG will obtain a
minimum of 3 bids. They will be evaluated based upon their work program, qualifications, local
experience and presence, references and fee. The selection committee will be the RSG Project
Team.
Once retained, RSG would then work with these firms (Design Team) to generate concept
plans, and design and construction drawings and specifications. During the evaluation and
conceptual design phase we would meet with City staff to review the rehabilitation options, and
their associated cost and schedule. Once concept plans are developed, the Design Team would
then, in conjunction with staff, process the plans through the City's various reviewing boards
and commissions, where applicable, and through RD (RD will, at a minimum, require preliminary
and final approval from RD's Architect, approval for changes to property lines and unit counts,
approval of financing and any changes of ownership. These approvals must occur at both the
local and national offices). Once the required approvals are secured, RSG would then work
with the Design Team to prepare construction drawings, specifications, and bid documents.
882/015610-004, _'L_ ,�:. 0 - 4 7
1160309,03 a03/11/11
12.0 Low- and Moderate- Income Tax Credit Financing
RSG's initial review of available financing indicates that the rehabilitation and development
activities would qualify for 4% Low and Moderate Income Tax Credit Financing (Tax Credits).
As part of our initial activities, RSG would work with National CORE and other tax credit
syndicators to conclusively determine if this development could obtain tax credit funding. If so,
RSG would then work with the selected non-profit entity to apply for, and attempt to secure Tax
Credits. An alternative would entail working with the entity that the Agency selects to develop
the adjoining vacant property.
13.0 Tenant lnterviewsand Temporary Relocation
In conjunction with the site and building evaluation, RSG will conduct interviews with the
residents to determine specific needs that they might have during the anticipated 120 day
temporary relocation while under construction. This information will be critical in the preparation
of a relocation plan and refining a budget. Prior to unit rehabilitation RSG will coordinate and
assist with temporarily moving 73-residents and onsite management to new units and thereafter
moving them back to their original units. Additionally RSG will coordinate and secure necessary
approvals with Rural Development in order preserve the existing rental subsidies.
14.0 Construction Management (Optional at the Agency Executive Director
Directoo
RSG will provide budgeting, construction estimates and manage the bidding process of up to
three phases of rehabilitation and construction plans. Upon award of the construction contracts
RSG will insure the contractor has produced and is in compliance with all contract requirements
as identified within bid documents, including prevailing wage requirements. Prior to mobilization,
RSG will conduct a pre -construction meeting, and will review, develop and coordinate proposed
project methods and scheduling.
Once the contractor is mobilized, and upon direction from the Agency Executive Director or his
or her designee, we will serve as the construction manager overseeing the contractor's work,
coordinating with the property manager and tenants, processing payment requests, conducting
employee and resident interviews, addressing construction document interpretation issues,
processing and monitoring change orders, maintaining and preparing required RD
documentation, ensuring that the improvements are built in accordance with the plans and
specifications, monitoring prevailing wage requirements, and processing closeout requirements.
In addition RSG will retain design, engineering and testing firms to complete course of
construction services and include their costs as part of this work program.
15.0 Final Disposition
RSG will work with the City's Project Team and RD to identify disposition options the Agency
and Authority may consider once the new construction and substantial rehabilitation is
complete. RD is a critical player in this decision since they must accept and approve any
882/015610-00,17 O
1160309,03 AM 1/I1 -r
ownership change. Discussions with RD staff indicate that if new entities are added to the
current Agency/Authority ownership, this process may require up to 6 months to process. If the
Agency/Authority elected to transfer this Apartments and New Development to another entity,
that process could take up to 24 months to compete.
16.0 PROJECT TEAM
I (Frank Spevacek) would serve as the Project Manager for this engagement overseeing and
managing the entire team and their respective responsibilities. Jon McMillen and Brandon
Fender would oversee and perform building and site evaluation activities, concept planning and
estimating, construction drawing and specification development, assembly of bid documents
and construction management. Tara Howard would be responsible for temporary residential
relocation.
17.0 ANTICIPATED COST
RSG proposes to provide the services listed in this Work Program on a time and materials basis
for a fee not to exceed $1,417,200. This fee includes the costs of sub consultants for
architectural, landscape, engineering and testing services as outlined in detail below.
Rosenow Spevacek Group Inc. ("RSG')
Sub Consultants
Design Development $ 500,000
Program Development RD. 30,000
Entitlement Process including RD 30,000
Relocation 144,000
Construction Management 499,200
Final Disposition 20,000
TotalRSG $ 773,200
Architectural Design $ 387,000
Landscape Design 42,000
Engineering and Surveying 165,000
V49
882/015610-0047
1160309,03 a03/11/11 -4-
Soils Report and Testing
32,000
Acoustical Consultant
10,000
Traffic Consultant
5,000
Biological Consultant
15,000
Archeological Consultant
20,000
Solar Consultant
10,000
Environmental
12,000
Total Sub Consultants $ 698,000
Total $ 1,471,200
RSG's services would be charged on a time and materials basis per the hourly rate schedule
contained in Exhibit B of the Development and Implementation Services Contract to which this
Scope of Services is attached. The sub -consultant cost would be charged at their direct cost
without an overhead or invoice processing surcharge.
882/015610-0047 < 0,150
1160309.03 a03/11/11
Exhibit B
SCHEDULE OF COMPENSATION
Principal / Director
$
185
Senior Associate
$
160
Associate
$
140
Senior Analyst
$
110
Analyst
$
100
Research Assistant
$
90
Technician
$
70
Clerical
$
60
Reimbursable Expenses Cost plus 10%
RSG does not charge clients for mileage (except direct costs related to blight field surveys),
parking, standard telephone/fax expenses, general postage or incidental copies. However, we
do charge for messenger services, overnight shipping/express mail costs and teleconferencing
services. We also charge for copies of reports, documents, notices, and support material in
excess of five (5) copies. These costs are charged back at the actual expense plus a 10%
surcharge.
RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance.
Invoices identify tasks completed to date, hours expended and the hourly rate.
182/015610-0047
1160309.03 a03/I1/11
Exhibit C
SCHEDULE OF PERFORMANCE
ACTIVITY
TIME FRAME
1.
RSG concludes design and engineering
Within 45 days after City or Agency issues
services contracts.
notice to proceed.
2.
Conceptual rehabilitation plans, budget,
Within 90 days after completion of item 1.
financing plan, and construction schedule
delivered to Agency and City staff.
3.
Agency approval or disapproval of item 2.
Within 15 days of review.
4.
Rural Development (RD) approval of item
Within 60 days of Agency's approval of item
2.
2.
5.
Rehabilitation plans, financing plan, and
Within 120 days of item RD approval of item
temporary relocation plans are prepared
2.
for approval by the Agency, City and RD.
6.
Agency, City, and RD approvals of item
Within 60 days of submittal.
5.
7.
Construction bid process and award.
Within 60 days of item 6. approvals.
8.
Certificate of Occupancy (C of O) for
Within 365 days of notice to proceed.
construction of phase 1 improvements (26
units and commons building)
9.
Final temporary relocation plan approval
60 days prior to C of O for phase 1.
10
C of O for 3 phased rehabilitation and
Within 420 days of C of O for phase 1.
relocation, 24 units at a time, 72 total and
commons.
11
Final disposition of property
Within 365 days of C of O for all phases.
It is understood that the foregoing Schedule is subject to all the terms and conditions of
the text of the Contract. Times of performance under this Contract may be extended by
mutual written consent of City, Agency and RSG. The Executive Director of the Agency
shall have authority on behalf of the Agency to approve extensions of time, with
882/015610-0047
1/6030903 a03/11/11 -7-
0"152
exception of any extension to the construction schedule by more than one hundred twenty
(120) (lays.
882/015610-0047 1160309.03 a03/11/11 -8
_
0)53
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Adoption of a Resolution Approving a Cost
Sharing Agreement Among the La Quinta
Redevelopment Agency, The City of La Quinta, and the
Coachella Valley Water District for the Reconstruction of
the Coachella Canal, a Regional Water Conveyance
System, Within the SilverRock Property and Making
Certain Findings Pursuant to Health and Safety Code
Section 33445 With Respect to the Agency's
Expenditure
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: _ 1
STUDY SESSION:
PUBLIC HEARING:
Approve a cost sharing agreement with the Coachella Valley Water District (CVWD) for
the reconstruction of the Coachella Canal within the SilverRock Resort Property, and
authorize the City Manager to execute the agreement subject to minor revisions by the
City Attorney, and appropriate funds for this project.
FISCAL IMPLICATIONS:
The following is the project's current and requested funding for Fiscal Year 2010-
201 1:
Coachella Canal Project Area No. 1 - non -housing 5,957,836
Additional Required Funding Project Area No. 1 - non -housing 5,042,164
Coachella Canal 1 1 $ 11,000,000
SilverRock Entry Feature and Roads Project Area No. 1 - non -housing 5,435,181
Reduced Funding Project Area No. 1 - non -housing (5,042,164)
SilverRock Entry Feature and Roads $ 393,017
In order to fund the Coachella Canal project agreement, staff has reduced the
SilverRock Entry Feature and Roads Project.
BACKGROUND AND OVERVIEW:
CVWD completed a preliminary study of the canal on April, 2009, which determined
the canal has dropped by approximately two to three feet from approximately 1,600
feet north of Avenue 54 to the mid -valley area in Indio.
The canal study determined the subsidence starts at SilverRock Resort near the
number 10 green of the golf course with a high spot near the rock outcropping behind
the number 16 tee box that restricts southerly canal flow. To the south of the
outcropping it is believed the canal is built over rock, so it has not subsided. This high
spot restricts flow by nearly 250 CFS (approximately half of capacity) slowing water
deliveries to farmers and to CVWD's Dike 4 recharge facility.
The Coachella Canal is part of a complex regional water conveyance and delivery
system that conveys Colorado River water to the Coachella Valley. Their water
Delivery System provides non -potable water for urban and agricultural purposes. In
addition it delivers water to the Dike 4 Recharge facility for the purposes of ground
water recharge to mitigate subsidence as well as to store water for future urban uses.
The CVWD report looked at three different alignments for the canal reconstruction.
Alignment A would construct a new canal parallel to the existing canal. Alignment B
would construct an underground pipe diagonally across the second golf course and
Alignment C would construct an underground pipe in the Jefferson Street and Avenue
54 parkways.
Staff and CVWD have been discussing canal options including an open canal, use of
box culverts, or placing the canal in a pressurized underground pipe. Discussion with
CVWD and staff have focused on various alternatives to upgrade their water delivery
system and possibly improve upon its design. In evaluating the alternative and in the
environmental process project benefits will be fully evaluated. Some of the issues that
will be addressed for each alternative will include canal/pipeline capacity, protection
from future subsidence, water evaporation, operational costs, age of associated
facilities, and safety. In addition the proposed improvements will evaluate removing
the east/west section of the canal and the L4 pump station adjacent to the number 10
tee. Attachment 1 is a cost sharing agreement which covers the preliminary
engineering, environmental review and construction plans and specifications
preparation for each of the three alignments as well as the pump station relocation.
The agreement will expire and the balance of the RDA's funds will be returned in 180
days if the Agency and CVWD cannot agree to a preferred alternative and construction
budget.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
0�55
1 . Approve a cost sharing agreement with the Coachella Valley Water District for
the reconstruction of the Coachella Canal at the SilverRock Resort, and
authorize the Executive Director to execute the agreement subject to minor
revisions by the City Attorney, and appropriate funds for this project; or
2. Do not approve a resolution approving a cost sharing agreement among the La
Quinta Redevelopment Agency, The City of La Quinta, and the Coachella Valley
Water District for the reconstruction of the Coachella Canal, a regional water
conveyance system, within the SilverRock Resort, and do not authorize the
Executive Director to execute the agreement, and do not appropriate funds for
this project; or
3. Provide staff with alternative direction.
Respectfully submitted,
c�ZV 2_
Timothy R. Jo a son, P.E.
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Cost Sharing Agreement
0'S6
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY, APPROVING AN AGREEMENT AMONG THE
AGENCY, THE CITY OF LA QUINTA, AND THE
COACHELLA VALLEY WATER DISTRICT, AND MAKING
CERTAIN FINDINGS PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33445 WITH RESPECT TO THE
AGENCY'S EXPENDITURE
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelop-
ment agency organized and existing under the California Community Redevelopment
Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has been authorized to
transact business and exercise the powers of a redevelopment agency pursuant to
action of the City Council of the City of La Quinta ("City Council' or "City," as
applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1 ('Project
Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, the Coachella Valley Water District ("CVWD") owns, operates, and
maintains the Coachella Branch of the All -American Canal ("Coachella Canal'), which is
generally that portion of the All -American Canal from Drop 1 to Lake Cahuilla; and
WHEREAS, as a result of ground subsidence that has occurred throughout the
Coachella Valley, the Coachella Canal has subsided generally uniformly with the land
except a portion thereof between Mile Post ("MP") 120.3 and the check drop structure at
MP 121.8 (e.g., the portion located East of Jefferson Street and extending to a point
south of Avenue 54 adjacent to PGA West) ("Non -Subsided Portion of the Coachella
Canal'); and
WHEREAS, all portions of the Coachella Canal located in the City are located in
the Project Area; and
WHEREAS, the Non -Subsided Portion of the Coachella Canal results in a
hydraulic condition whereby the original flow capacity has been substantially reduced;
and
WHEREAS, an engineering report prepared by GEI Consultants, Inc.,
a Massachusetts corporation, has concluded that increasing the flow capacity within the
Non -Subsided Portion of the Coachella Canal will require a physical solution, including
the possibility of replacing and/or relocating all or a portion of the Non -Subsided Portion
of the Coachella Canal; and
WHEREAS, the Agency, City, and CVWD have negotiated an agreement
("Agreement') that would provide for (i) CVWD to design the physical solution selected
E51
Resolution No. 2011-
CVWD Canal Agreement
Adopted: March 15, 2011
Page 2
by the parties ("Preferred Flow Capacity Option"), (ii) the parties to attempt to negotiate
a subsequent agreement ("Construction Agreement") providing for the implementation
of the Preferred Flow Capacity Option, including the demolition and removal of any
facilities no longer needed for the Coachella Canal, and the repair of any damage
caused by such demolition and implementation to the underlying real property through
which the Coachella Canal runs (collectively, the "Project"), and (iii) the Agency to
deposit Eleven Million Dollars ($11,000,000) of Agency funds with CVWD, which
amount is the Agency's estimated. proportionate cost of the Project, with all portions of
such funds not yet expended, plus interest, being returned to the Agency if the parties
fail to timely negotiate and execute the Construction Agreement; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly owned
buildings, facilities, and improvements; and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan and is
of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the Agency's financial contribution pursuant to the Agreement is
necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The publicly owned improvements funded pursuant to the Agreement
("Improvements") are of benefit to the Project Area, by helping to eliminate
blight within the Project Area, in that the Improvements consist of public
infrastructure improvements, and the Redevelopment Plan provides for
the elimination, and prevention of the spread, of blight and blighting
influences through the installation, construction, or re -construction of
streets, utilities, and other public facilities and improvements.
'•:0"5a
Resolution No. 2011-
CVWD Canal Agreement
Adopted: March 15, 2011
Page 3
B. No other reasonable means of financing the Improvements are available
to the community, for the following reasons: (i) City monies are dedicated
to critical police, fire, and other necessary expenditures, including other
capital improvement projects; (ii) the only practical means of paying for the
Improvements is to use Agency funding; (iii) without Agency funding for
the Improvements, the Improvements would not be completed, all to the
detriment of the Project Area.
C. The Improvements are consistent with the Agency's implementation plan
adopted pursuant to Health and Safety Code Section 33490 ("Implemen-
tation Plan"), in that improving public infrastructure and facilities within the
Project Area are goals set forth in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Improvements is necessary to
effectuate the purposes of the Redevelopment Plan and is in the best interests of the
City of La Quinta.
SECTION 4. The Agreement, a copy of which is on file with the Agency
Secretary, is hereby approved. The Agency Executive Director and Agency Counsel
are hereby authorized and directed to make final modifications to the Agreement that
are consistent with the substantive terms of the Agreement approved hereby, and to
thereafter sign the Agreement on behalf of the Agency.
SECTION 5. The Executive Director is hereby authorized and directed to (i) sign
such other and further documents that require the Agency's signature, and (ii) take such
other and further actions as may be necessary and proper to carry out the terms of the
Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agnecy held on this 15th day of March, 2011, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
DON ADOLPH, Agency Chair
La Quinta Redevelopment Agency
0]59
Resolution No. 2011-
CVWD Canal Agreement
Adopted: March 15, 2011
Page 4
ATTEST:
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, AGENCY COUNSEL
La Quinta Redevelopment Agency
0;60
ATTACHMENT 1
AGREEMENT
THIS AGREEMENT ("Agreement") is made on this day of , 2011
("Effective Date"), by and among COACHELLA VALLEY WATER DISTRICT, a public
agency of the State of California ("District"), CITY of LA QUINTA, a California municipal
corporation and charter city ("City"), and LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic ("Agency"). District, City, and Agency are sometimes
referred to herein individually as "Party" and collectively as "Parties.'®
RECITALS
A. On or about December 21, 1920 the
("United States") approved the "Boulder Canyon Pr
Boulder Canyon Project Act, the United States c
Coachella Branch ("Coachella Canal"). The Co
American Canal from Drop 1 to Lake Cahuilla.
B. District owns, operates, and
No. Hr-781 with the United States
(collectively, "O&M Agreement").
Reclamation ("USBR"), has an easemen a
C. Grou
the original constru
uniformly with the I
drop structure at Ivy
hereto and by this
Canal").
that a
and/or
States of America
7). Pursuant to the
an Canal and its
ion of the All-
ella Canal pursuant to Contract
as amended and supplemented
and through the Bureau of
oachella Valley at least since
oac la Canal has subsided generally
Mile Post ("MP") 120.3 and the check
darly depicted on Exhibit "A" attached
n-Subsided Portion of the Coachella
ortion of the Coachella Canal results in a hydraulic condition
t been substantially reduced. In order to increase the flow
;d on of the Coachella Canal, the Parties have determined
;cur, including, but not limited to, the possibility of replacing
of the Non -Subsided Portion of the Coachella Canal.
E. Dis ned the services of GEI Consultants, Inc., a Massachusetts
corporation ("GEI") aluate the subsidence of the Coachella Canal generally, and the non -
subsidence within the Non -Subsided Portion of the Coachella Canal. On or about April, 2009
GEI submitted to District its report entitled, "Evaluation of Subsidence and Canal Replacement
Options" ("Report"). A copy of the Report is on file in each of the Agency's and the District's
offices.
F. The Report identifies a number of physical solutions to increase the flow capacity
within the Non -Subsided Portion of the Coachella Canal (each such solution, a "Flow Capacity
Option"). Agency and District have commenced evaluating each of the Flow Capacity Options.
882,015610-0117
1158947 02.03/08/11
- 0^61
G. The implementation of each of the Flow Capacity Options will require the
installation of new pipelines, and the demolition and removal of certain existing pipelines and
facilities. Further, the implementation of each of the Flow Capacity Options will cause damage
to the municipal golf course through which the Coachella Canal runs (the "Golf Course").
H. The Parties estimate that the total cost of designing and implementing the Flow
Capacity Option, including repairing the damage caused to the Golf Course thereby (collectively,
the "Project") will be approximately Fourteen Million Five Hundred Thousand Dollars
($14,500,000).
I. A description of the Project is set forth in E " which is attached hereto
and incorporated herein by this reference. A preliminary et Project is set forth in
Exhibit "C"which is attached hereto and incorporated n by this re e (the "Budget").
J. The Parties now wish to provid o (i) Agency's deposit ands with the
District to cover Agency's proportionate share t costs to delclop the Proje d the terms
for District's expenditure thereof; (ii) the District
the Project (a "Project Manager"); (iii) a method
"Preferred Flow Capacity Option"); District's
of the Project; and (v) the District's deRRgRJQWstru,
NOW, THEREFORE, IN
COVENANTSCONTA R
TION, THE SUFFI I
PARTIES, THE P SAG
by thRIDJWce to
project manager o implement
a Flow Capacity Option (the
;e of an environmental review
Project.
CWHE PROMISES AND
� VALUABLE CONSIDERA-
ACKNOWLDGED BY THE
All of the above Recitals are hereby
as though hereinagain set forth in full.
A en osl unds. Within seven (7) business days after the Effective
Dat ency shall de wit strict funds in the amount of Eleven Million Dollars
($11,0 0) (the "Agen unds' cover the estimated proportionate costs of the Agency
with resp the Project. e Agency Funds shall be retained in a separate, interest -bearing
account own the Distr' the "Agency Funds Account"), and may only be withdrawn from
the Agency Fu cco nd expended by District in accordance with the terms of this
Agreement.
3. Retention of Engineering Firm; Preparation of RFQ. Within seven (7) business
days after the Effective Date, District shall retain an engineering firm to prepare a preliminary
description of each of the three (3) Flow Capacity Options and of the Project, sufficiently
detailed so that District may prepare a Request for Qualifications for the selection of the Project
Manager (an "RFQ"). The costs District incurs in preparing the RFQ shall be hereinafter referred
to as the "RFQ Preparation Costs".
4. Retention of Project Manager. District shall promptly submit the RFQ, and shall
provide to City and Agency, within ninety (90) days after the Effective Date, the response of the
882/015610-0117
1158947.02 a03/08/11 -2-
0-69
firm or entity District proposes to retain as the Project Manager. Upon City's and Agency's
approval, which City and Agency shall not unreasonably withhold, condition, or delay, District
shall retain such firm or entity as the Project Manager, by entering into with such firm or entity a
Design and Construction Management Services Agreement in a form approved by the Agency's
legal counsel.
5. Preparation of Preliminary Plans and Engineering Estimates. District shall cause
the Project Manager to prepare and submit to the City, Agency, d USBR for review and
approval preliminary designs and cost estimates for each Flow Ca ption (collectively, the
"Preliminary Plans"). The City, Agency, and USBR shall hav i (30) days from receipt of
the Preliminary Plans to approve or disapprove of the Preli ns. If the City or Agency
disapproves the Preliminary Plans, the City or Agency (as scab all state specifically, in
writing, within the thirty (30) day period, the reasons uch disapp and the changes the
City or Agency (as applicable) desires to the PF(asappl
ary Plans. Di 'e shall review the
proposed changes and shall cause the Project Mmake such change e Preliminary
Plans as reasonably requested by the City or Ag e.ica.
6.CEOA Compliance. District shall ac gency with respect to compliance
with the California Environmental ity Act (` "), the National Environmental
Protection Act ("NEPA") and all oth
requirements of the Federal Endangere,
arising out of or in connection with the
measures which must be in
Compliance"). Enviro a i1
rules and reeulatio ardinu N
prepare, or cause qct
writings required to%
agree to co t withmanner1 • todocurA or instr me
e state an eral environmental laws and all
c3 d the mia Endangered Species Act
Pr t for c ce w Il conditions and mitigation
;on o (collectively, "Environmental
nce s lude comp lance with federal and state laws,
Ameri remains and cultural resources. District shall
instrume documents, reports and other like or kind
by QA and NEPA. Agency and City hereby
d City's sole cost and expense, in a timely
lvironmental Compliance and the preparation of any
thereby. District shall complete its Environmental
ct Manager's completion of the Preliminary Plans.
7. Pre aration o' onstruction Plans. Within �-7 days after the City and Agency
approve the Vaesigns
istrict shall cause the Project Manager to prepare and submit to
the City, AgIfte for review and approval detailed construction plans and
specifications ("ns") for the Project, which reflect each of the Flow Capacity
Options. All plwith respect to the golf course repair work portion of the Project
(the "Golf Course Repair Work") shall be reviewed and approved by the Arnold Palmer Design
Company, and shall meet PGA standards The Construction Plans shall be submitted to the City,
Agency, and USBR for review and approval. City and Agency shall have thirty (30) days from
receipt of the Construction Plans to approve or disapprove of the Construction Plans. If the City
or Agency (as applicable) disapproves the Construction Plans, the City or Agency (as applicable)
shall state specifically, in writing, within the thirty (30) day period, the reasons for such
disapproval and the changes the City or Agency (as applicable) desires to the Construction Plans.
District shall review the proposed changes and shall cause the Project Manager to make such
changes to the Construction Plans as reasonably requested by the City or Agency (as applicable).
182/015610-0119
1 [58947,02 a03/08/11 -3-
0"63
8. Selection of Contractor. District shall prepare or shall cause the Project Manager
to prepare a construction bid package for the construction of the Project, which requests bids for
each of the Flow Capacity Options. The Parties acknowledge and agree that the construction of
the Project shall comply with all public works requirements which are applicable to the District
pursuant. to the California Water Code, the California Government Code, the California Labor
Code and the California Public Contract Code, including, but not limited to, the payment of
prevailing wages. District shall provide the USBR, the City, and the gency with a copy of the
construction bid package promptly after the completion thereo strict shall provide the
following in the construction bid package:
(a) Each of Agency, City, and USBR ar ed obligee under any labor
and material bonds and contract performance bonds for ro*ect;
(b) Each of Agency, City, an Rare named on an .no
insured
certificates on any general liability insurance po equired of Contractor fo Project;
(c) Each of Agency, City, and US ed as an indemnified party under
all indemnification, hold harmless pr is s, waivers a eases in favor of the District and/or
the Project Manager for the Project; an
(d) The contractor wh erfor olfrse Repair Work shall be
experienced in golf tours s - tion an 1e i
City gency s 1 ave thi 30) days from receipt of the construction bid
package to approv isapprov the const 'on bid package. If the City or Agency (as
applicable) disapprov co ack City or Agency (as applicable) shall state
specifically Ting, hirty a,. iod, the reasons for such disapproval and the
changes ncy plicable) desires to the construction bid package. District shall
re, ie proposed es all cause the Project Manager to make such changes to the
con ion bid packag easo requested by the City or Agency (as applicable).
It
Within {Q1, after District obtains City's and Agency's approval of the
construction ackage, D ct shall obtain and shall provide to City and Agency construction
bids for the Pr Cit Agency shall have _ (__) days after receipt of the construction
bids to select the eI low Capacity Option. Promptly thereafter, District shall determine
the acceptable constr n bid (or bids, if the Golf Course Repair Work is bid separately from
the other components of the Project), in the District's sole and absolute discretion, in accordance
with the District's normal procedures, policies and practices or as otherwise provided by federal,
state and local laws and the rules and regulations promulgated thereunder, which are applicable
to the District. Notwithstanding the foregoing, (i) the contractor or contractors selected by
District (the "Contractor" or "Contractors") shall be qualified and properly licensed by the State
of California to construct and complete the Project (or the applicable portion to be performed by
such Contractor); and (ii) City and Agency shall have the right to reasonably approve the
Contractor(s). Promptly after City's and Agency's approval of the Contractor(s), District shall
882/015610-0117
1158947.02 a03/08/11 -4-
_ 0�64
enter into a public works construction agreement reasonably approved by City and Agency (the
"Construction Agreement").
Notwithstanding the foregoing, the Parties agree that District may bid and
prepurchase materials, including, but not limited to, pipelines, due to the anticipated time
necessary to obtain such material. In the event District elects to bid and prepurchase such
materials it is the intent of the Parties that District cause the Contractor to install such materials
in substantial compliance with the Plans.
9. USBR Easement; Clearingof f title.
selects the Preferred Flow Capacity Option, (i)
documents satisfactory to District and USBR as to
assure the District's unequivocal right to construct
reconstruct, remove and improve the Project, incm
turf, decomposed granite, shrubs, and/or trees
connection with the Project; and (ii) District s
location of the new pipelines to be installed as pa
10.
Within fift ) days after the date City
Agenc btain recorded easement
content I t n and width and which
o e, maintain, ace, repair, enlarge,
e District's rig lace and/or plant
nNUL
d adjacent to the pi es installed in
lear title t e real prope erlying the
e Pr Flow Capacity tion.
(a) Within 1`s E 11t(I'I:,.,. '' 31�; the D selects the Contractor(s) and
obtains City's and Agency's approval of, t t s cause the Contractor(s) to
commence the installatio structio t oje ordance with the schedule set
forth in the Construct' gree The le shall re uire that all work and activities
occur during the su months June, and August) so as to minimize the disruption
of play and the aes impacts o Project o e Golf Course. Any material deviations from
the Construction Pla ust by and Agency, in writing. The revised
Constructio shall tted to gency, and USBR for review and approval,
which a t be sonably withhe d. City and Agency shall have fifteen (15) days
from t of the sed truction Plans to approve or disapprove of the revised
Co tion Plans. e o and/or Agency to approve or disapprove the revised
Constr Plans within fiftee 5) day period shall be deemed as disapproval thereof by
City and ency (as app c le). If the City or Agency disapproves the revised Construction
Plans, City ency (as cable) shall state specifically, in writing, within the fifteen (15)
day period, the ns f disapproval and the changes the City or Agency (as applicable)
desires to the revis Ms ction Plans. The District shall review the proposed changes and the
District shall make s changes to the revised Construction Plans as reasonably determined by
the District.
(b) Change orders for the Project may be warranted due to a variety of
reasons, including, but not limited to, unforeseen circumstances or the need for construction of
additional or changed improvements not contemplated by the Construction Plans. The Parties
believe, as a general proposition, that such change orders should be approved if submitted to the
City, Agency, and USBR by the District. District is authorized to approve such change order
provided that such change order does not (i) materially deviate from the Construction Plans; (ii)
increase a unit cost [quantity by more than twenty-five percent (25%); (iii) exceed Fifty
992/015610-0117
1158947.02 a03/08/11 -5-
0"65
Thousand Dollars ($50,000) on any one bid item; or (iv) increase the contract price set forth in
the Construction Agreement by more than twenty-five percent (25%), when added to all
previously approved change orders. In the event a change order will materially deviate from the
Construction Plans, the provisions of subsection 10(a) shall apply.
(c) The Parties agree that the District will monitor the construction of the
Project as a cost and expense thereof. Monitoring shall include, but not be limited to,
construction inspections. A&
(d) Upon initiation of construction, Distrieldr submit weekly progress .
reports to the City, Agency, and USBR with respect to the co of the Project.
11. Budget. The Parties acknowledge
estimate of the costs to design and implement th
amend the Budget as the actual costs of
Notwithstanding the foregoing, the Budget m
written approval of the City and Agency. For It
one or more changes that cause the total Project cc
percent (2%) or more from what is shq&&Exhibi
12. Cost Allocation
(a) The,
phrase is define
Section 12. rthstatic
City's prop ate share
($0.00); (ii) A 's pr
up t kj shall n
"District
(b) The
K of the PI
ee that th2qget is a good faith
ct. From time • e, District shall
oject become know are changed.
be mat ly changed t the prior
of greement a mat ial change is
e by a cumulative amount of two
propo at e "costs and expenses" (as that
sign a ment the oject shall be as set forth in this
nythin rein to the contrary, the Parties agree that (i)
e costs a xpenses of the Project shall be Zero Dollars
hare e costs and expenses of the Project shall be
e ollars ($11,000,000), and shall be paid out of
District's pr ortionate share of the costs and expenses of the
I Three Million Five Hundred Thousand Dollars ($3,500,000)
be responsible for the following share of the "costs and
(i xcept as otherwise provided in this Section 12, the costs and
expe curred by District to perform the pre -construction work and activities
in Secti ns 3, 4, 5, 6, 7, and 8 hereof shall be borne equally by District and
Agency.
(ii) Except as otherwise provided in this Section 12, the costs incurred
by District to construct the Project shall be paid for District, until such time as
District has expended (including the costs expended by District pursuant to
paragraph (a) above) all of the District Funds. After such time as all of the
District Funds have been expended, the costs incurred by District to construct the
Project shall be paid for out of the Agency Funds.
882/015610-0117
1158947,02 a03/08/11 -6-
0^66
(c) As used in this Section 12, the term "costs and expenses" shall include all
costs and expenses to design and develop the Project, including, but not limited to:
(i) The costs to conduct the Environmental Compliance;
(ii) Preparation of the Preliminary Plans, engineering, surveys, field
notes, grade sheets, and Construction Plans for the Project;
(iii) Costs to clear title to the property wit hich the new pipelines
and facilities will be installed by District;
(iv) Construction costs, including ited to, bonds, insurance
and other requirements of the Contractor(ssa costs o utility relocations.
(d) From time to time, but n
provide a written invoice to Agency se
costs and expenses of portions of the
paragraph (b) of this Section 12. Said
showing all reasonable costs an expenses
invoice. In the event Agency exp
nor City disputes the invoice,
the subject invoice from the Ag F
objects to an invoice the Parties s me
days to resolve th mount. t
an improper Dis shall
amount. In vent the d ted am
may withdra funds a o ted to the
Funds Account. i s s
noVthan once per h, District shall
orth Agency's proport share of the
ct, pursu o the allocat et forth in
I e s clude an itemized accounting
inc District which are set forth in the
ressly ve of an invoice, or neither Agency
ithdrawlQ51unds allocated to the Agency on
ount. e event Agency and/or City
e r fo period of up to fifteen (15)
nt t ted amount is determined to be
e a new invoice, to eliminate the disputed
is determined to be a proper charge, District
ncy on the subject invoice from the Agency
linquent payment. In the event the Parties
€f in such fifteen (15) day period, either Party
allowed by law.
(e) T roes to maintain records of all costs and expenses incurred by
Party and to such ords available for review and audit of the other Party or
its • e ' nee, upon t (30) business days' written request by any Party in accordance
with otice pro ns of Section 14 of this Agreement. All such records shall be
maintai , th ies for no less than three (3) years following completion of the
Project.
(f) Notwithstanding anything herein to the contrary:
(i) Each Party shall be responsible for its own staff and overhead costs
and expenses, and such costs and expenses shall not be deemed Project costs;
(ii) Agency's proportionate costs of the Project are based on District's
installation of a single ninety-six inch (96") pipeline. In the event District desires
to install pipelines that differ from this standard, District shall be responsible for
882/015610-0117
1158947,02 a03/08/1I -7- �- O V
] G 7
all additional costs that exceed the cost of installing a single ninety-six inch (96")
pipeline.
(iii) In the event that District desires to implement or install any
iypgraels to the Project District shall be responsible for all costs associated with
such upgrades.
(iv) In the event any portion of the Golf Course Repair Work
constitutes work that exceeds actual repair work, A shall be responsible for
all costs associated with such non -repair work.
(g) District expressly agrees that as a re sts incurred pursuant to
subparagraphs (ii) and/or (iii) of paragraph (g) ab e, istrict' ortionate share of the
costs of the Project shall exceed the District F s the amount ch costs.
(h) After completion of th Ject, as evidenced by Contractor's
recordation of a Certificate of Compl Distric II promptly r all funds
remaining in the Agency Funds Account to y.
13. Completion of Project. completion acceptance of the Project, District
shall: (a) cause the Contractor to pre ecut_
a icate of Completion as to the
Project and record said notice with the cc o er of ounty of Riverside, State of
California; and (b) give Age written no a atio
(a) comp n of th ject, District will facilitate the granting of an
easement to the U • the form content nably acceptable to the USBR. Agency shall
cooperate with Dist - efforts g nt an ease t to the USBR. Agency's cooperation shall
include, without limita x o struments necessary to grant the same.
on I etion of the Project, District will facilitate the quitclaim of the
appl' •a portion of an portion of the Coachella Canal ("Quitclaimed Property").
The i aim shall be to Agen such other persons or entities reasonably determined by
the Part ollectivety, " laime '). The quitclaim deed shall be in such form and content
as shall be ined by th SBR. Agency acknowledges that the Quitclaimed Property shall
be quitclaime the co a and appurtenances ("Abandoned Facilities") in place; provided
District retains t h o e all or a portion thereof in the Project. Neither the USBR nor
District shall have ility or responsibility of any kind with respect to the Abandoned
Facilities and Quite ees shall waive and release the USBR and District therefrom.
Quitclaimees may remove or cause the removal of the Abandoned Facilities (at Quitclaimee's
cost and expense) or retain all or a portion thereof in place and Quitclaimees shall indemnify and
hold the USBR and District harmless from all costs and expenses in connection with the same.
14. Notices. All notices, invoices and payments (collectively, "Notices") provided for
hereunder shall be in writing and (i) mailed (registered or certified, postage prepaid, return
receipt requested), (ii) delivered by reputable overnight or same day courier service that provides
a receipt with the date and time of delivery, or (iii) hand delivered to the Parties at the addresses
882/015610-0117
1158947.02 a03/08/11
set forth below or at such other addresses as shall be designated by such Party and by a written
Notice to the other Party in accordance with the provisions of this Section. All such Notices
shall, if hand delivered, or delivered by overnight or same day courier service, be deemed
received upon delivery and, if mailed, be deemed received three (3) business days after such
mailing.
To City:
we
City of La Quinta
P.O. Box 1504
La Quinta, CA 9,
Attn: City Mana€
City of La
78-495
La Quinta,
Attn: City
copy to: IjffqWh& Tucker,
1400
La Qui edevelopment Agency
P.O. Box . 4
92247
Director
Notices Delivered Personally or by Courier:
La Quinta Redevelopment Agency
�8-495 Calle Tampico
La Quinta, CA 92253
Attn: Executive Director
Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Attn: M. Katherine Jenson, Esq.
To District: Coachella Valley Water District
85-995 Avenue 52
Post Office Box 1058
Coachella, CA 92236
Attn: Steve Robbins, General Manager -Chief
Engineer
882/015610-0119
1158947 02 a03/08/1 I -9-
OD69
copy to:
15. Entire Agreement. This instrument, together with the exhibits attached hereto
and other writings referenced herein, contains the entire agreement bet een the Parties relating to
the subject matter hereof and supersedes any and all prior agreeme een the Parties, oral or
written, and any and all amendments thereto. Any oral OKubsequent
ations or modifications
concerning this instrument shall be of no force and effect, exc modification in
writing, signed by the Parties to be charged.
16. Attorney's Fees. In the event of any on or other acNcod
the Parties
arising out of or relating to this Agreement or t ch thereof, the prty shall be
entitled, in addition to such other relief as may anted, to i easonaattorneys'
fees.
17. Substitute Provisions•,te'abilit . If a ovision of this Agreement shall be
ruled invalid, illegal or unenforceable, rt.es shall: I omptly negotiate a substitute for
the provision which shall, to the greates en ermis I effect the intent of the Parties
in the invalid, illegal or unenforceable pr on, a otia ch changes in, substitutions
for or additions to the rem ovision thi e may be necessary in addition to
and in conjunction wit eve to feet to t intent of the Parties without the
invalid, illegal or un cable pr ion. To extent the Parties are unable to negotiate such
changes, substituti r addition set forth e preceding sentence, and the intent of the
Parties with respect ess of th greement may be carried out without the
invalid, ille U66U1.nen I ova cc of this Agreement shall not be affected,
and this all strued and en reed as if the invalid, illegal or unenforceable
provi ' d not ex
Other Act Ea arty hereto agrees to execute and deliver such other
docume d perform su ther acts as may be necessary to effectuate the purposes of this
19. GIMIXingWy. This Agreement is entered into within the State of California,
and all questions co ng the validity, interpretation and performance of any of its terms or
provisions or any of t e rights or obligations of the Parties hereto shall be governed by and
resolved in accordance with the internal laws of the State of California and applicable federal
law. In case of a conflict between federal law and California law, federal law shall control.
20. Interpretation. The provisions of the Agreement shall be construed as to their fair
meaning, and not for or against any Party based upon any attribution to such Party as the source
of language in question.
882/015610-0117
1158947.02 a03/08/11 -10-
F70
21. Time is of Essence. Time is of the essence of this Agreement and each and every
term and provisions thereof.
22. Representations and Warranties.
(a) Agency represents and warrants to City and District that as of the Effective
Date of this Agreement, and subject to the disclosures set forth below in this Section 22: (i)
Agency has all requisite right, power, legal capacity, and authority to nter into and perform its
obligations under this Agreement; (ii) any persons executing this A ent on behalf of Agency
are authorized to do so; (iii) the execution of this Agreement ency does not violate any
provision of any other agreement to which Agency is a d (iv) except as may be
specifically set forth in this Agreement, no approvals or ents heretofore obtained by
Agency are necessary in connection with the execution is Agreem Agency or with the
performance by Agency of its obligations hereund ency hereby di s to District that
pursuant: to draft legislation to implement a pr made by the Gove f the State of
California on January 10, 2011, agreements ent nto by red lopment agen nand after
January 1, 2011, may be subject to challenge ee y . rom the effecti date of the
legislation, or approximately until June 30, 2014, sho gislation be adopted.
(b) District repress
requisite right, power, legal capacity,
this Agreement; (ii) any persons exec
do so; (iii) the execution 1
other agreement to wh Istrl
this Agreement, no vals or
connection with th cution of
of its obligations here
s to CHIMLd Agency that: (i) District has all
ter int perform its obligations under
be L of District are authorized to
Ict P t of
any provision of any
except may be specifically set forth in
ofore obtained by District are necessary in
District or with the performance by District
ity ents and warrants to District and Agency that: (i) City has all
requi ' ht, powe , I ca ca and authority to enter into and perform its obligations under
this ement; (ii) any ons mg this Agreement on behalf of City are authorized to do
so; (iii execution of Agre nt by City does not violate any provision of any other
agreemen which City i party; and (iv) except as may be specifically set forth in this
Agreement, rovals or • cents not heretofore obtained by City are necessary in connection
with the execu f thi ement by City or with the performance by City of its obligations
hereunder.
23. Assignment. None of the District, City, or Agency shall, either voluntarily or by
action of law, assign or transfer this Agreement or any obligation, right, title or interest assumed
by such Party, except as otherwise provided herein, without the prior written consent of the other
Parties. Any attempted assignment in violation if this provision is void ab initio. Subject to the
foregoing, the provisions of this Agreement shall apply and bind the successors and assigns of
the Parties. Notwithstanding the foregoing, in the event the Agency is deactivated or dissolved
during the term of this Agreement, the City shall have the right, in its sole and absolute
discretion, to declare itself to be the successor to the Agency of this Agreement; provided,
882/015610-0119
1158947.02 a03/08/1I -1 1-
0 � 71
however, that nothing herein shall require the City to make such declaration or to assume
Agency's obligations under this Agreement.
24. Inspection of Records. Agency, with reasonable advance notice to District, shall
have the right to inspect and copy, at its costs, the books and records of District pertaining to
District's receipt and use of the Predevelopment Loan.
25. No Third Party Beneficiaries. Except as specificily set forth herein, this
Agreement shall not be deemed to confer any rights upon any indi or entity which is not a
party hereto (except the USBR) and the Parties expressly di,, i third party benefit.
26. Waivers. No delay on the part of any
or privilege hereunder shall operate as a waiver then
Party hereto of any right, power or privilege hereu
power or privilege hereunder, nor shall any si
privilege hereunder, preclude any other or furl E
hereunder.
27. Ownership of Canal. o the
works constructed pursuant to this Ag
construed or interpreted to give City an
Coachella Canal. Each of City and Ag cc
control over the Coachella.4�an Rc the one n
28.
represents and N
on behalf of the
shall
he or Alias the
r snail any i
perate as a wai
partial exercise of
se of aj&other right,
g any right, power
on the part of any
f any other right,
.ght, power or
p or privilege
its appurtenant works and all
xict. Nothing herein shall be
iwnership with respect to the
�ot to assert any interest or
ividual executing this Agreement hereby
lwer and authority to execute this Agreement
Nis Agreementmay be executed in counterparts, each of which
f which shall constitute but one instrument.
Any entnotpaid when due shall bear simple interest at the
er California law from the Due Date until paid in full.
31. ictio e Parties agree that any action or proceeding to enforce or relating
to this Agreement ought exclusively in the Federal or State courts located in Riverside
County, California, e Parties hereto consent to the exercise of personal jurisdiction over
them by any such courts for purposes of any such action or proceeding.
882/015610-0117
1158947,02 a03/0811I
[End - signatures on next page]
12-
0`72
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date
and year hereinabove written.
"District"
COACHELLA VALLEY WATER
DISTRICT, a public agency of the State of
California I&
Date: _ 2011 By:
Its:
2011
ATTEST:
Veronica J. Montecino, CMC
City Clerk
APPROVED AS T
RUTAN &TUCK LP
By:
M. KAjb9ftnJenso ttomey
Date: ® Al2011
"City"
LA QUINTA, fornia municipal
i anAcharter city
"Agency"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Executive Director
ATTEST:
Veronica J. Montecino, CMC
Agency Secretary
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Bv:
M. Katherine Jenson, Agency Counsel
882/015610-0119
1158947 02.03/08/11 -13-
I.N. E 7 3
EXHIBIT "A"
DEPICTION OF NON -SUBSIDED PORTION OF
COACHELLA CANAL
[to be inserted]
882/015610-0117
115894z02.03/08/11 EXHIBIT "A"
0 74
EXHIBIT "B"
DESCRIPTION OF THE PROJECT
[to be inserted]
our
1158947,02 a03O8/11 EXHIBIT `B"
.e
EXHIBIT "C"
PRELIMINARY BUDGET
[to be inserted]
982/015610-0117
1158947,02 a03/08/11 EXHIBIT "C"
V, 76
Tit�v 4 4 Qum&
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Approval of an Amendment to Domestic
Water and Sanitation System Installation and Irrigation
Service Agreement with the Coachella Valley Water
District for Well Site Mitigation Requirements for
SilverRock and Adoption of a Resolution Making Certain
Findings Pursuant to Health and Safety Code 33445
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: to
STUDY SESSION:
PUBLIC HEARING:
Approve an amendment to Domestic Water and Sanitation System Installation and
Irrigation Service Agreement (Attachment 1) between the Redevelopment Agency and
the Coachella Valley Water District (CVWD) for the settlement of well site dedication
requirements for the SilverRock Property, authorize the Executive Director to execute
the amendment, subject to minor revisions to the amendment by Agency Counsel, and
appropriate the funds for this project.
FISCAL IMPLICATIONS:
The following is the project's anticipated funding and funding sources:
Redevelopment Project Area 1
$2,000,000
Total Funding Available: $2,000,000
Funds for this project will come from previously appropriated funds in La Quinta
Redevelopment Project No. 1 allocated to the SilverRock Infrastructure Project which
will be reduced by $2,000,000 to a new Fiscal Year 2010-201 1 budgeted amount of
$1,216,631.
The amount above represents the upper limit of the estimated cost which will depend
on the appraised value of the land purchase for the well site.
BACKGROUND AND OVERVIEW:
As part of the SilverRock Resort development, the La Quinta Redevelopment Agency
("RDA") and CVWD entered into a "Domestic Water and Sanitation System Installation
and Irrigation Service Agreement" (the "Agreement) on June 11, 2005 which requires
a number of water, sewer, and irrigation improvements to be constructed during the
build out of the site in order to mitigate utility impacts from the development. The
Agreement, among other things, requires the RDA to dedicate six well sites and one
pressure reducing station as part of its mitigation for SilverRock Resort improvements.
In addition to the well site dedications, the Agreement requires that the RDA fully
develop two of the well sites to include drilling a domestic water well and installing to
CVWD standards a pumping plant and appurtenances. These improvements will either
be constructed by the RDA or CVWD will be paid an additional amount to construct
them at a future date. The RDA has attempted to obtain mitigation well sites for the
past several years. To date, the RDA has secured and improved one CVWD-approved
well site at Dune Palms Road and Avenue 48, adjacent to the Wolff Waters project.
While several other well sites have been identified, all are located too close to existing
CVWD well sites, and RDA staff has been informed by CVWD that the well sites
proposed on the SilverRock property are too close to the adjoining mountains. City
staff met with CVWD staff in October, 2009 and discussed potential well site
alternatives. It was noted at that time that CVWD may be open to financial mitigation
through an amendment to the Agreement. On February 26, 2010, CVWD sent a letter
to the City providing a cost breakdown for in -lieu fees for the remaining five well sites,
including site improvement costs plus land value. Current land value would be
determined via appraisal.
The proposed amendment to the Agreement would require the RDA to provide in -lieu
payments for the five remaining well sites (the "Amendment"). The cost for each of
the five well sites would be based on the appraised value of one half acre of real estate
within the City plus the cost of the improvements listed in Exhibit A of the
Amendment. The agreement allows the Agency to pay the full amount at anytime or
make three equal payments over the term of the Agreement. The future pressure
reducing station cost would be included in the cost of the future infrastructure
development at SilverRock Resort.
The Amendment has been drafted and attached to this report (Attachment 1).
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve an amendment to the Domestic Water and Sanitation System
Installation and Irrigation Service Agreement between the Redevelopment
V 78
Agency and CVWD for the well site mitigation requirements for the SilverRock
Property, and authorize the Executive Director to execute the amendment,
subject to minor revisions to the amendment by Agency Counsel and
appropriate the funds for this project; and adopt a Resolution making certain
findings pursuant to Health and Safety Code 33445; or
z. Do not approve an amendment to the Domestic Water and Sanitation System
Installation and Irrigation Service Agreement between the Redevelopment
Agency and CVWD for the well site mitigation requirements for the SilverRock
Property, and do not authorize the Executive Director to execute the amendment
and appropriate the funds for this project; and do not adopt a Resolution making
certain findings pursuant to Health and Safety Code 33445or
3. Provide staff with alternative direction.
Respectfully submitted,
Timothy R. Jonas , P.E`.
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . Domestic Water and Sanitation System Installation and Irrigation
Service Agreement Amendment
0-79
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY, APPROVING A FIRST AMENDMENT
BETWEEN THE AGENCY AND THE COACHELLA
VALLEY WATER DISTRICT, AND MAKING CERTAIN .
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445 WITH RESPECT TO THE AGENCY'S
EXPENDITURE
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a redevelop-
ment agency organized and existing under the California Community Redevelopment
Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has been authorized to
transact business and exercise the powers of a redevelopment agency pursuant to
action of the City Council of the City of La Quinta ("City Council' or "City," as
applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1 ('Project
Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, the Agency and the Coachella Valley Water District ("CVWD")
previously entered into that certain Domestic Water and Sanitation System Installation
and Irrigation Service Agreement on or about June 11, 2005, with respect to the
provision of water and sanitation services to the SilverRock Resort area (the
"Agreement'); and
WHEREAS, the SiverRock Resort area is located within the Project Area; and
WHEREAS, the Agreement provides, among other things, for the Agency to
provide CVWD with title to six (6) domestic water well sites (each, a "Well Site"), and for
the installation of drainage and certain other improvements and facilities at each of such
sites (collectively, the "Well Site Requirements"); and
WHEREAS, pursuant to the Agreement, the Agency has provided or caused
to be provided to CVWD one (1) Well Site, located at Wolff Waters Place, near
Avenue 48 and Dune Palms Road, in the City of La Quinta, State of California, and
has or shall provide the Well Site Requirements with respect to such Well Site; and
WHEREAS, the Agency and CVWD have negotiated an amendment to the
Agreement (the "Amendment"), that would provide for the Agency to pay to
District in lieu payments that would satisfy the Agency's obligation to provide five
(5) Well Sites and the Well Site Requirements with respect to each of such Well
Sites (each, an "In Lieu Payment"); and
•`" 0 U 0
Resolution No. 2011-
Well Site Amendment
Adopted: March 15, 2011
Page 2
WHEREAS, the In Lieu Payment amount would be determined pursuant to an
appraisal of a half acre parcel of real property in the City that would meet CVWD's
criteria for well sites; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly owned
buildings, facilities, and improvements; and
WHEREAS, the Amendment is in accordance with the Redevelopment Plan and
is of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the Agency's financial contribution pursuant to the Amendment is
necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The publicly owned improvements funded pursuant to the Amendment
("Improvements") are of benefit to the Project Area, by helping to eliminate
blight within the Project Area, in that the Improvements consist of public
infrastructure improvements, and the Redevelopment Plan provides for
the elimination, and prevention of the spread, of blight and blighting
influences through the installation, construction, or re -construction of
streets, utilities, and other public facilities and improvements.
Resolution No. 2011-
Well Site Amendment
Adopted: March 15, 2011
Page 3
B. No other reasonable means of financing the Improvements are available
to the community, for the following reasons: (i) City monies are dedicated
to critical police, fire, and other necessary expenditures, including other
capital improvement projects; (ii) the only practical means of paying for the
Improvements is to use Agency funding; (iii) without Agency funding for
the Improvements, the Improvements would not be completed, all to the
detriment of the Project Area.
C. The Improvements are consistent with the Agency's implementation plan
adopted pursuant to Health and Safety Code Section 33490 ("Implemen-
tation Plan"), in that improving public infrastructure and facilities within the
Project Area are goals set forth in the Implementation Plan.
SECTION 3. The Agency's expenditure for the Improvements is necessary to
effectuate the purposes of the Redevelopment Plan and is in the best interests of the
City of La Quinta.
SECTION 4. The Amendment, a copy of which is on file with the Agency
Secretary, is hereby approved. The Agency Executive Director and Agency Counsel
are hereby authorized and directed to make final modifications to the Amendment that
are consistent with the substantive terms of the Amendment approved hereby, and to
thereafter sign the Amendment on behalf of the Agency.
SECTION 5. The Executive Director is hereby authorized and directed to (i) sign
such other and further documents that require the Agency's signature, and (ii) take such
other and further actions as may be necessary and proper to carry out the terms of the
Amendment.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 15th day of March, 2011, by the following vote to
wit:
AYES:
NOES:
ABSENT:
r_1*3IF_11.A
DON ADOLPH, Agency Chair
La Quinta Redevelopment Agency
iM
Resolution No. 2011-
Well Site Amendment
Adopted: March 15, 2011
Page 4
ATTEST:
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
V83
FIRST AMENDMENT TO DOMESTIC WATER
AND SANITATION SYSTEM INSTALLATION AND
IRRIGATION SERVICE AGREEMENT
THIS FIRST AMENDMENT TO DOMESTIC WATER AND SANITATION
SYSTEM INSTALLATION AND IRRIGATION SERVICE AGREEMENT ("First
Amendment") is made this _ day of 2011 by and b tween Coachella Valley
Water District, a public agency of the State of California ri't") and, La Quinta
Redevelopment Agency, a public body, corporate and politic ("L to").
RECITALS
A. On or about June 11, 2005 District
Water and Sanitation System Installation and Irrig
B. Section Lc of the Agreement p
District with title to six (6) domestic water w
station/pressure reducing site (the R") at
District. 1110161
C. Section Ld of the Agree
design and construction of tom) water
D. St
respect to some
installation of
Requirements").
the Distr
Road, in
the WeNF.a
uiremer
Quintin lieu at wol
Well Sis
Lf,1. h,Ij,
the W ites <
of
certain Domestic
Agreement
in hat La QuintaVall provide
'A
1 Sites") and one (1) booster
lon or locations approved by the
with respect to the
.q, and Lr contain certain requirements with
BS/PR, including, but not limited to, the
L'Well Sites (collectively, the "Well Site
ation of the Agreement, La Quinta provided or caused to be
1 Site, located at Wolff Waters Place, near Avenue 48 and
inta, State of California. La Quinta has or shall provide
p to such Well Site.
ted and District has agreed, that La Quint provide to District
La Quinta's obligation to provide five (5) Well Sites and the
t to each of such Well Sites (each, an "In Lieu Payment").
G. La Qulfi and the District now desire to amend the Agreement to provide for the
In Lieu Payment on the terms and conditions set forth herein.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS,
WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE, THE MUTAL
COVENANTS CONTAINED HEREIN, AND FOR OTHER VALUABLE
CONSIDERATION, THE SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED
Error! Unknown document oronertr name.882/Frror!
Unknown document Property no me. W 5610-Frror! Unknown
document property name.041R
Error! Unknown document Property name. 44894Z.Error!
Unknown document Property name.04 a03/11/11 _1 •oN� 0 i Q q
BY THE PARTIES, THE PARTIES HERETO AGREE TO AMEND THE AGREEMENT
AS FOLLOWS:
1. District and La Quinta hereby agree that La Quinta shall provide to District an In
Lieu Payment for each of the remaining five (5) Well Sites. The parties
hereto agree that each In Lieu Payment shall be the sum of the Well Site
Improvements as shown on the attached Exhibit A plus the value of a half
acre (1/2) acre parcel of real property in the Ci of La Quinta, California
which would meet the District's criteria for sites as determined by
appraisal ("Land Value"). La Quinta s point an appraiser, at La
Quinta's sole cost and expense, to det e Land Value. La Quinta
shall provide the appraisal to the roval and if approved,
said appraiser's determination of and Val 11 be binding on the
parties hereto. If the Disn' es not appro e Land Value as
determined by said appraisa is
shall have t t to appoint an
appraiser to establish a d appraisa at La Quint Ole
cost and
expense, to determine the Value District and uinta will
then negotiate the Land Valu e e first appraisal and the second
appraisal. The otiated Lan e shall be binding on the parties
hereto.
2. La Quinta shall pay to
nrovisi"s of this
in accordance with the
Wi irty ( ays aft e Land Value is approved by the District and
inta, La to shall to District one third (1/3) of the collective
v of the 5 In Li ayments (the "Payment Amount"). For
ex if e In Lieu Payment is $300,000, and the
llecti t of al eu Payments is $1,500,000, then the Payment
nt s e $500,000.
a. On fore of the first (I") and second (2"d) anniversaries of the date
on w La is required to pay the Payment Amount pursuant to
Section bove, Quinta shall pay to District the Payment Amount.
fing the foregoing provisions in this Section 2, La Quinta may, in
absolute discretion, elect to pay the entire collective value of the
n Lieu Payments at any time before the payment dates required
to paragraphs a and b above.
3. Agency represents and warrants to District that as of the date of this First
Amendment, and subject to the disclosures set forth below in this Section
3: (i) Agency has all requisite right, power, legal capacity, and authority
to enter into and perform its obligations under this First Amendment; (ii)
any persons executing this First Amendment on behalf of Agency are
authorized to do so; (iii) the execution of this First Amendment by Agency
Error! linknown doeument nronerN name.8b?' /F;rror!
Unknown docament orooerty name.073FiiPF.rror! unknown
document nronert name.04 P
Error! Unknown document nrooertr name. H 58943.Error!
Unknown docnment property name.03 a03/11/II
•�n. 01,85
does not violate any provision of any other agreement to which Agency is
a party; and (iv) except as may be specifically set forth in this First
Amendment, no approvals or consents not heretofore obtained by Agency
are necessary in connection with the execution of this First Amendment by
Agency or with the performance by Agency of its obligations hereunder.
4. District represents and warrants to Agency that: (i) District has all requisite right,
power, legal capacity, and authority to en r into and perform its
obligations under this First Amendment; (i' per
executing this
First Amendment on behalf of DistA
orized to do so; (iii) the
execution of this First Amendmect does not violate any
provision of any other agreement tict is a party; and (iv)
except as may be specifically 'rst Amendment, no
approvals or consents not here obtained by t are necessary in
connection with the exec is First Amendme District or with
the performance by Distr' ts.obligatigWDs hereunder.
5. Neither the District nor Agency
assign or transf his First
interest assum ch
without the prio
assignment in vio n i
the
sh i oluntarily or by action of law,
Am t or any obligation, right, title or
party, t as otherwise provided herein,
nsent o Nionid
er party. Any attempted
ab initio. Subject to the
ent shall apply and bind the
parties. twithstanding the foregoing, in
activated or dissolved during the term of this
hall have the right, in its sole and absolute
be the successor to the Agency of this First
r, that nothing herein shall require the City
to assume Agency's obligations under this
Csupplemented in this First Amendment, the terms and
he Agreement shall remain in full force and effect.
the immediately preceding sentence, the Agreement shall
In a manner consistent with the intent of this First
IN WITNESS WHEREOF, La Quinta and District have caused this First Amendment to
be executed as of the day and year first above written.
DISTRICT:
Coachella Valley Water District,
a public agency of the State of California
Error' Unknown document proverb' name.882/Error!
Unknown document Property name.015610-Error! Unknown
document Property namedN-P _
Error' Unknown document pronem name. + 1589P.Error!
Unknown document property name.04 a03/11/11 -3-
D.C. 01J8 6
Its:
"City"
CITY QUI a California municipal
com n and charte
Date: . 2011
City
ATTEST:
Veronica J. Montecino, CMC
City Clerk
APPROVED AS TO FO
RUTAN & TUCKER,
By:
M. Katherine on, City
'LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic
Executive Director
0001131
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Bv:
M. Katherine Jenson, Agency Counsel
Error! Unknown document orooerN name.UR/Error!
Unknmvn document uropert name.04453&Error! Unknown
document nropert name.W4l
Error! Unknown docmnent property na me.44-59917. Error!
Unknown document pruperN name.&i a03/I1/I1 "4-
4r 0,87
C&,(f 4 4 a"
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Adoption of a Resolution Making
Findings Pursuant to Health and Safety Code Section
33445 Approving Agency Funding of the Acquisition
of Land Identified as APNs: 770-123-002,003,004-
Virginia Evans Garbutt; 770-123-006,01 O-NIS Yield
Partners, LP, Ted Newell; 770-124-002,003-James
Kelly; 770-124-009-Nispero Prop, Bob Hill; and 770-
124-007-Michael A. Fischer
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency making findings pursuant to Health
and Safety Code Section 33445, and consenting to the Agency funding of the
acquisition of land.
FISCAL IMPLICATIONS:
The Agency will expend approximately $3,869,000 plus closing costs to acquire the
properties listed above. Four of the Purchase and Sale Agreements have been signed
by the property owners. The Fischer property is in foreclosure and the Purchase and
Sale Agreement is pending lender approval. Adequate funds are budgeted in the 2010-
201 1 Capital Improvement Program, account number 401-1845-551.74-01.
Property Owner
Offer
Virginia Garbutt
$1,059,000
NIS Yield Partners
$993,000
Nispero Pro
$847,000
James Kelly
$635,000
Michael Fisher
$335,000
TOTAL
$3,869,000.00
BACKGROUND AND OVERVIEW:
The Agency Board has directed staff to pursue the purchase of various properties in
the Village which could improve public access to and within the Village. The above
listed properties are located west of the Library. A map of the properties and the five
Purchase and Sale Agreements are included in the related City Council consent report.
0,38
Pursuant to Health and Safety Code Section 33445, the Agency may fund the cost to
acquire land and construct public improvements if the City Council and Agency Board
makes certain findings that support this expenditure, and if the City Council consents
to having the Agency expend these funds.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1 . Adopt a Resolution of the Redevelopment Agency approving the Purchase and
Sale Agreements subject to minor modifications approved by the Executive
Director, making findings pursuant to Health and Safety Code Section 33445
and consenting to the Agency funding of the acquisition of land; or
2. Do not adopt a Resolution of the Redevelopment Agency approving the
Purchase and Sale Agreements consenting to the Agency funding of the
acquisition of land; or
3. Provide staff with alternative direction.
Respectfully submitted,
L. ,
a�
Douglas R. vans
Assistant City Manager — Development Services
/ Approved for submission by:
Thomas P. Genovese, Executive Director
0, 09
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY MAKING CERTAIN FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445 WITH
RESPECT TO THE AGENCY'S EXPENDITURE
WHEREAS, the La Quinta Redevelopment Agency ("Agency') is a redevelop-
ment agency organized and existing under the California Community Redevelopment
Law ("Health & Safety Code § 33000 et seq.) ("CRL") and has been authorized to
transact business and exercise the powers of a redevelopment agency pursuant to
action of the City Council of the City of La Quinta ("City Council" or "City," as
applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1 ("Project
Area") on November 29, 1983, by Ordinance No. 43; and
WHEREAS, Agency staff have negotiated purchase and sale agreements
(collectively, the "Agreements") with five (5) independent owners of residential real
property located in the Village area of the City (collectively, the "Properties") for future
public parking and/or road realignment purposes (collectively, the "Infrastructure
Improvements"), to facilitate access to the Village; and
WHEREAS, the Properties are located within the Project Area; and
WHEREAS, the Agreements would provide for the Agency's expenditure of
Three Million Eight Hundred Sixty -Nine Dollars ($3,869,000) plus closing costs to
acquire the Properties; and
WHEREAS, with the legislative body's consent and the satisfaction of certain
specified requirements set forth in Health and Safety Code Section 33445, the CRL
authorizes redevelopment agencies to expend tax increment funds to acquire real
property for, and to fund the cost of the installation and construction of, publicly owned
buildings, facilities, and improvements; and
WHEREAS, the Agreements are in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the Agency's financial contribution pursuant to the Agreements is
necessary to effectuate the purposes of the Redevelopment Plan;
NOW THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency, as follows:
SECTION 1. The above recitations are true and correct.
°0 J
Resolution No. RA 2011-
Village Property P&S Agreements
Adopted: March 15, 2011
Page 2
SECTION 2. Pursuant to Health and Safety Code Section 33445(a), the
La Quinta Redevelopment Agency finds and determines that:
A. The acquisition of publicly owned land pursuant to the Agreements for the
future development of the Infrastructure Improvements is of benefit to the
Project Area, by helping to eliminate blight within the Project Area, in that
the Infrastructure Improvements consist of public infrastructure
improvements, and the Redevelopment Plan provides for the elimination,
and prevention of the spread, of blight and blighting influences through the
installation, construction, or re -construction of streets, utilities, and other
public facilities and improvements.
B. No other reasonable means of financing the Infrastructure Improvements
are available to the community, for the following reasons: (i) City monies
are dedicated to critical police, fire, and other necessary expenditures,
including other capital improvement projects; (ii) the only practical means
of paying for the Infrastructure Improvements is to use Agency funding;
(iii) without Agency funding for the Infrastructure Improvements, the
Infrastructure Improvements would not be completed, all to the detriment
of the Project Area.
C. The Infrastructure Improvements are consistent with the Agency's
implementation plan adopted pursuant to Health and Safety Code Section
33490 ("Implementation Plan"), in that improving public infrastructure and
facilities within the Project Area are goals set forth in the Implementation
Plan.
SECTION 3. The Agency's expenditure for the Properties for future development
with the Infrastructure Improvements is necessary to effectuate the purposes of the
Redevelopment Plan and is in the best interests of the City of La Quinta.
PASSED, APPROVED .and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 15th day of March, 2011, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
0,191
Resolution No. RA 2011-
Village Property P&S Agreements
Adopted: March 15, 2011
Page 3
DON ADOLPH, Agency Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, AGENCY SECRETARY
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
0,92
RDA G f t
-c� a
p
b OF1
TO: HONORABLE CHAIR AND MEMBERS OF THE REDEVELOPMENT
AGENCY BOARD
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: THOMAS P. GENOVESE, EXECUTIVE DIRECTOR/CITY MANAGE
FROM: DOUGLAS R. EVANS, TANT CITY MANAGER -DEVELOPMENT
SERVICES
DATE: MARCH 15, 2011
SUBJECT: AGENCY CONSENT CALENDAR ITEM NO. 11-VILLAGE PROPERTIES
COUNCIL CONSENT CALENDAR ITEM NO. 16-VILLAGE PROPERTIES
Attached is the Contract Amendment to the Fischer property purchase. This
property is currently subject to the bankruptcy court disposition. As such they
have requested a deposit of $10,000 instead of the $5,000 as noted in the
Agency/Council's packet.
.» 0193
b tlN- Mae
NA+TQY the oaW. cormnnmmldR Of guvaabhb lantlged by the Sup«br Cot CCan name m
tsrea.Psrn s+ a ra..VS0, y r �p a4 •" dal, tma b m of 1Mm
popery marred a: g7JIrYR d r'Eawrb to tro pu anoo a ma
n i®ri�v akrwr as err a.oaam - _ _. _. ,Capoma.de«bed
IS`aib pMaaCOrmmonaathe faroaacoo _..-________,o,.,o,,,e,,,., ..N �.Arywq acwe-wa
panwdtheah6 widaa wartaray am corrdaron, roryng. pormfad ueo a Iho popery,
«any anon mega, uaoa odrerwisa aprwd In
z. PURCHASE P`tcE:nob,.na.Z eat a+o®apt//isry6rv67i5PLt .../pa,o(a.3 SD�0.go
apaah Oft, Groot orBnardrigft..
z BUYSMS RKIIIAL DePoS BuymAg. d L'".R.tat. BIUCA�Re. ar�Gx1.......... ........ p/DA ONIV. o0
PAMLEro rs H. is 'Pa-Batee'
.J1M ropraeyatlre a" EmMtk,QCj gro E.bb, EeoMwHada,❑ Smker'a Rua omua. or ,
by Peraaar Chak (or, 0 dWe Md4XCpmar'a Cheat ❑ Can. a ❑
TO BE HELD UHCASHED ungroa non Waaeee ay Cb empbnce Of do oft,a
a. BDNE`"SBM`,REAMPEPOSIn Buywrshaadspak.wima_daya. dtart-
E BALANCE OF PURCHASE PwCEm be Pam tam oeeepaneeadaa br ......,..yas _cant. �� pa"-ommt �
yvr=�
0. ALIDCAION OF tbBYi: Ooeb OW WPaid n bawo kheek harm which ePph'k
A. ,11 Guyx. BgacbpayEadow Ma -sjjOt: C110LCC
B• ❑BwwG a.wGbpoyown«bime�raaepaW,y:(OCfia ALndry.. ll-s ahnide
D tpoNad a mmpery
c _ aryeL o BegaG a pay Gam«rnab awarme pdky
0. UBpr.GJ$rsetleGapayCwaY popenyverM«mt«br
FL I'm aacapayCM pmperry aarwbr mx anew
F Buya. StlbGb PeY Hertaewnaro'Aaaodetlon bargd«IeP aapproamamty
a ❑Burr, 9aa,bpaY aatwaow aM rawmayaaetearewaang lmm payatfd oncumbrnrwew_
K OBUM SeM,bpay mr«arAng ere Mcerdngereaador Wwrdoa.maeaan.ayancw
"DUE WARRANTY COSTS:
L 1. ❑Buyer.$Bala, aal pey ae COMdaoroAwar nano NarareY pier, notmewsa .m be Issued by
Ma tlu tabwingopbnd oaampa: —
OR & ❑Buy«andBeAer atat NOY bataada coA«npa —�
tdtnP NniBarL�do
J. 1. Sabbd
rragpeydlrebbencoMaMd wrBuprbolpmnrtddmpa Amancingmodaiona, lndanoloanerWOM
/ew rcmgidma oGiW
1. ❑ BuyoG 0 Ba4e4 ehra pq for AGh h�e�Ml Fcpprmuy. '
y ❑ Buyer, O WK ohMl PSY�t�Jrwaan5mLa Pdaa.MNtedm__poam
A. g.baWuponthe r'D*W& MPOM MWrwwk b Maarten. Sdra aW paybr aueh eawk b e marmran rnaad
a SUM MYcaacetmb banoodon g Buff b umobg cruet M mpayarauba Mpebeerk
eeeapM�anmr�----
CONTROL COSTS:
K 6kuetuMl Peateanaa teem and repak wva brwt a oammon a ode mb.
*-kvW Psaoadrd oanperry, Mailing the mein Weang end etbcnae aiMM"a,,, dcbookW: Q d «eoryab,
❑ Gray ❑ me allowing oma auuduroa en me property:
"Me PMWYb au let o oondeminl , Clamed do„alepmem, a caoprnlF,r,'th.Rspoosealo oaytbeospaYo
Inkwa[ and any arauaae.uee eras bang test mmmon prose.
t. 08 uyaG Seat b b caracl'Pc1M Ideaabn," "Bpptlar �• eonogona.
a O B Pay br work reeammrnded m oana "ProwrejeWl " Boaten 2- Conn#«*, g Mqueobd by Suy c
L 1. RodpopoMmkaonaaeaaeta%tre«eeG nka, Hoaoawnen'AgodaaarMWlorab«w/rgdvaamnra,prombaom
tnauanoo*Greasedby Buys,andpaPaemeonbW'd@a aaaaemaa oaaumed by BUM ehagbopap CURRENrrum pwaod
beMwar Data and BOW ON Of ae dell 0100110 a eaororG pr ❑
g. Pwpnwb on Melb'Raoe arm dryer Spade Am,"mom DAMd boa am a weemoeprAah we now a UK one PWMM en
H"oftneWAmolo n gwdaaereaeaMrwMdiomrbwaan, daebe PAmCUR`ErRdMpaamdbee+miBuffWWSaw
ea Of the daMadoeaeeuve, with papronbHIM eromtYet dnam~ by8uyaWITHDUrCRE rrbMamthe punil apbw
(a O -__
s rho Nvvatyaoebpab emoawmtuponehmgoaomwahp TldowOeNpa tbatamatobaPdd,AmWppam«pol a
Mgr shall be Pad arermw li) brpaaaagedeeaaeumm byeuya(orby rutacgaeg PaM,gpandA ®chaps},ad(�
forpedodspdamcbmdsocn^by9ee«'Bx bilbWuad eRNaoaoaaacrawaieg bolargad dbaptlyldfanwharI and()
C. Omar: _ . Ati
+arwa waves
wwtxw.eraaumaambw
RPX*O- BCXW E. Awwq
0-94
have troaW. E
_a
Oma,. 3 11" )0! L_
R WHENCOURTCONpNiAT10YI OFSAIE�REOUIREO; SolMshWdbaPodaonbooMrmtM tekdvrePmPeRyYdm da eourLAoourt oondmretoln heating IsaanMOY hold epplma aAWY 50 to 45 drys mMr Vre Petition b frw. Baser"no* SUM in wdWp of We Wad
oWdhmation heWVQ date Atha, VWbcaBon. Bmlmrmm*"'o'enmmtG that BuWrPaaomQy aPParatMinlet oonhmalbn hainn in
Pt WBN'Ks Foment in the rwra d"MdaMp,
ffthe tit oppromdw saw in4-^as*Pae mpNyhaid on COMB Of Saar OW be 14"ed lowatd are purchase yeba u me$Meb
notconlamW to BLhWdW 0anaMd K Corte, dopow mow, was, 18 CC^ tlWl roMumw b Soya, Itthe *am is<mamow by
the WA an Ordm C01"110 SW to BUYW *0 be blued by the o mI. BUYW ehW PdY the bAW" Of the Pamheee Pdoe Wkth m w ❑
--idrye hen tecmp m aron OWar by EaevaHobwn Bayer.
On OMER LOSSES Sy Was SELLER
lapsed
kaoIn On ePMa
preM:(Claorbose *hlob
A. ❑InmatigedonaPropayoonditonSa
a ❑PWAMOfAPnlYnmry 1i).
O ❑ e It 12).
10. BWEp'S OFPROPIArVC0161i170N_6ceNuPmdacdfnwn9nWdMaiMsn'119LY"eYe. BufetidooxPtmwolNdevtlNm
alone PWW1Y dba AQraemaaL BuyersW ndethenPMb oonaaaampecaone, nwemgmbDare
m, W" umvw^ saw r
nbiret ')m BuWrlapnse,
mahpMamahazmdarsmmwwAb BUY^mlmpeobndBNPraWm/maYbtlutlamN9�bBYa a�abbmbq,
brdtsoowd wnmwma e'anaaBmnadwdwawawae.awPaha,.aa..mnw.e.Wr.aWaperwrr�penxwnr
AO tmreQedPrademamYYWprosenlwnntrowderNrinWR+trtwmeanaa^YPeraonMPmpadYbmlWadbllntraN.
a Impw.ibrM
Buicato oofa WvWdbwmisarmarghm awbmero BuWrsawn aebcdondleotaesbntlawRheyplolWatequaMlmlbmbmntlW
are mMn PrepeM.
BUYM 0 STHDNOLYADMED70 MVEV=MTHE COM"ON AIM SUITUALITYOF ALL ASPECTS; OF THE PROPFHTYAND
ALLNATMISAFFECDNO THE WWEOROBEIRABIL"OFTHEPROPWY.W— CUM DOES NOrWMftIBETHESEBIONTTL Wi ER
15ACr=AGAINST THEADWCE OF.OWKERB. BUYER UNDERBTANOSTWDALTHWONCONOMONSANOOEFECM AREOMIN
DIFFIC1"TOLOCATE AND WBCOVV%ALL IRALPROPERTY AND MMMEMENTC CONWN DEFECM Ago COMxnGN5MUCH
ARE NOT READILY APPARENT AND WHICH MAY AFFECT THE aWE OR ❑ URRABILNY OF THE PROPERTY BttrPw a.n eon r Mo
_UNLE
CalkpxmS.E), BROKERS MAYS NOT AND WILL NOTYERIPYANY REMS, IMt.!!%OTNERWL4EAOREED W WMTBYQ
dealrOaP Maki the Pmpadi''" antbtt brml k.PWoPna. BVYNNreII kW the Property fre, Pw dowof IMe, kMemnitynd hoW Selby
harmless from am rabli ty, eakna, damw%K demtpos,aMcmle;and ropolr0P damages ariWlng horn thelntpmdna, No Inspections maybe
made by arty Om'*nnanne Wking w=nWQ ImPaaor w Qo MGM amploWe Without the P•br wrmen tttraeM w"1% unb.e mqumd
bylxWlaft BUYW"pmuWebS.ysr. 9Wo , VF(MrpuplWSeta,oanPW opkada[ h.pealonopwbobweredbyBuywoaro"
the Pmparty.
1'I. TITLE:REVIEWOFAPRBLININARYMTLE)BMIM.TDeandboft*amaPlbna.eneumbrncea,eesamad&cDvw dk WndiPwy,
resYlplons, r5h4 arW Omer mamO allolrrt In tM �ys� PFPd4>gtWNayankes o"Awnspew hwdPlp.
hen the dole of aspmnue: obtain Mmm tan aWaysi;
sppmv roman appmral nee -has nd been remaWea,wmmn wkferrc-,d-td,,ku,n,,tpprpwl ha6
It. Niniumon overbid to be at loon ,5 Vz liigher the e or bl tid L� �
Overbiddor to match all tarmn Q conditions of original bid.
SE a tucaeeaful overbid is accepted E Onefizmed by the court, then p a
the RlacceeetOl overbiroof to reimburse original bidder, o ver $ der.)
in aoste interred. Proof of noaiea spent to be given to overbi�
tay ramlldbr maryaua. Pao., «near got P.D.. area MONEY
Bow%loltlab 1 i Sake,MPala .1 r I hm wa MPa�w>rr.•q,w.�
ar !Cm'Sw'
BROKER'S COPY •w
am crw awr.HAaPY1F Raat aavgParV rsslR.aaeanPerw aW
V95
1.
adnaR aifidiWim: - -
Ar TYe PmMOba_PWMMSWp aplOnodbS.
0. 71W currMl M1 aer Hord.ownV W Aa.«dadan (HON dunAnaamena be
❑ .i
C SWirMa2wpadwMlnit(«❑_..�daa. Md«n,NebaeruGrfw P.r:
yE RE111014RU E BuyMawrRbn na
fed In pamaropho id. M 12, ana 1%
will be,wMW W to Buyw.
a1 11 ' W PMeood
Payable ❑ monthly, or
P'O MswARon mEoa 109MI«a4ryIbmsSgappm.d
OWUPWInraO 00"mM or HOA nparomem wWm otherwba samoo In wailing.
radeMcheigWb BuywwdyMbdbSMW «: ❑
aaro.d In � b Mpalr«ebrr.tl.
not dalNwed to Saber WaMn Par a,n2W,,y pModa
:dm If Evilerwrvan, dePoebMoney Ion appumbb
rya(a)oanpoladan MpePuafL IrwofW WI%roAm
rO da coMirrIRMy d obtaining buy 11*Mk bW.(b)
V. and so— for rapaiM or cwrWftm ojhW than for
B„YernreyarluitN.trwasdbnaMbW badepoae.
IS. SELLER"EhiPRONSC Sebw b aawnpt hom pMvbba Buyw wtho"101100ft Rama which" aPMbabeln m,,,y ow ewdW ao,w.
B„Y•r diolAd fanductaA MW arnlwre nressery b ebla4i nls w0mrpm awetl bytlwa Verna:
A. RaaEelab 7Mwa101aobauro6mreru„r•Tw.suwm...�„rr...«.......r....�W.,_".__. ____._. __.. __..
•4+w..• ...,.�.wr.myvaM bad!'
No Mich bf'bacea b(sAd,dabe prmi ouna afba Seale, bn
a • dseadMfY aalaEa, pats. W 1p 0o as valanh «firL• No ouch aaclasm are Will a p wkad b Buyo M SSSW
0. WMeapa.RMSWW Ma:pTimdeuMwdablethe
R001, COmoualMbnryaRrScaRGIPlAot. ant denwbBUyBra ealaawhe«wlM Propuryle
a Srnaaoa0aeeer(ekTTleeaaf
aasawb„ Stall be PerkMmd
Thar may Indud0. but
TT. AOEHT'aOUTY TOINSPECI'AND IRFORM: For aalsedMaNlargid pMpsnyaMalnYg«yyAMr dAala,p uMle.tM rrprN rslKr.mrp
SNbrandBuyer have a duty to porbrm a 1111" vbud hoocnM of the maw&*aCcrsAds ares.a the ProPwly. and or hdurm auywa
MymafMalfib raasiad by suchMfPMUon Msm,Mthe vsbawdeNMbRtyatbPM QWTKb nay admaIn awina, ropondoled ant
iWad by each ROOM and dolvarNmeuyoc Agent and mMla.vsry~ bdoso mmm the one, Boma of 64,esmwdlOsum'IProp"
C&UNM Period (PwW roPh q).
IL YSSTUHkTHE MANNEROFTAIGNO TrTEMAYHWESERIOUSIEOALANOTA%COUSEOUENCES. Suywb4nds tobbWeufoNwro:
la ESCROW IOMUCTIONSANDCTASBIOP ..
viaMuoplammeflMeaXseUeouAamtonal"eschewlebREOU81EpswOwvandl0beswbNn 1C(« ❑ rnyelnm EsawrNOMer
«Bibwfa Maio a e copya the court OMu Coabmh,p Sale Soon shut notWsd ba W b elan sscrow Mwm«a« Yaw wry ss«0w
eoab Prior ro coon ccnfBmatbn.
INTHEPURCHASEPRICE(w*ma�d.dbWb".aMsbPwe .wb gWot%oa. Thawlndudq Writs Ma�osl.
lgh*Qplwar„a sMMaftibumm lYppi"wouv.rWeyeims,bullNnappllanaA .dndowmvr4gAeaWAW
aTwmwragt.lolarbbnerarmr, egelRedbhreMr9aMd ON OP Vi$*MairooNwat6vmww Apopp+W
aqutprnMl, walw wftnm(a owrad by S (ROwnsdby Soau).SaraOodo« opansaJMnnrlecorwW, YraNad
firopleoa equipment, Canino Inddb•--" ' eMies eraryrnem
or aber he Ur, ve InebdM:
�RLE.e
21 SELLER'S RIONT TO CONTINUE TO MARKED Stlu Maacros the right cor«miabmenial the PMPanyand a,,"cap, bek'vpa(aM,
24. TIME OF ESSENCE: ENTIRE CONTRACB CHANOESI Tbale of the reancaANMMff*Ma Pat~ the PMbe are kmrpoMted In bus
AP"W"ent which wneffl rfM sMro oaasd,blamam trmnded by dy paMea asaMal."")leb, and eactudtw expansion a"we
TheMYionsi rrpeabbont are
lorwr,Ma,,, of mb, rWd ,ancla nosaenrpNas Part
Agn.rrp«Meww«eleprrm May
The captions In mk AammaM m br am.Monce araleruweont/, ant m not edended r pandtae A{Irearrea. T1H. Aplmenl my
nol of Clod. .march .meditlad, slyMd,« changed awry moprl whaaoa.er, sa*W in wdbng algned by aryarad Bad .
Buyr.M 9eUV aeopyaab Pepe, wlYeh 8d_.!,_fYpr agCg1,0E Pga.
bgwYt 4 —) 6elarY lreeM —� Rr.,..ra a(egwwbWe.__
Mb ��
LOOPY vwr
RM cr1R Prrrw:Na CF r1f• RFaI OlN1PGalY npab.te OArta . IrR M
V96
Pmp
:a
20.
UGd„0 AW6 _Prudential California Realty. ' Y000bikane
0"CIFI eNavy tine Went Of (dock na):
❑ 1110 slaw s WW"Y. a ❑ both the Bywr and SWIK
S"IMAgs,d:14 Gpyl ,+,, Yo&ms. R'�at'—• {(VnEtks,we"LbtwpApenOhtM4Vaad(ans,dts,wD
(thkll Finr7Ynal
I are Buyer emumMY.m❑de BoINrwd"naly, m 0 ban t" Btryerma u"m
Rea BeAte Bmkan enrol part" 10 the pmdh aria tea Awwrwd bOtAW Btger aM SOW. (IF THE PROPERTY OONDINB I"
m
a each a"" dON wWwsitred tTyart,
X OFTeR:tMabnaMmpumbewthe pmpwtY netwndaalp"d CWYdetNnd In Pa"n.. by MO.a
ncNm4, SM Pmm�etk' wae"ed by Buys, Or by M~ C , who Is augwftmd m mosIe
0. b/ . tB_, m _ AM/PM, dw after sne8 be d"m0d revoked wW the CePUnit4n" to rebrnod. Buts
ands.BreduwMud9etnnarpbnann0tputlammewraaPemd "W APOW am. MW 11"(6841 ndaamewi"ttl rooWateaq
?'/fsA44J rr 6Ea CIVU
wwwdgnad, nproenedve d _
aA(ea m ens atacn"COlsas, ORa
a"NntoaboveIw, ow"
aM, a "wed orvtha taunt Tte uc
P'[t to r, L,. // .Ito L (
BY
Raw"wrmMW1
By
maPter
AMOWLEDOMBIT OF AMM
RecoO of signed soommwme on (dx* a _ AMMM, by Buy" m
Buy" Ove wtow Rew"ed"w. M wmow ge4.(—J—J OM"
,��'►Y�clkrl-c�
Tie afro smesr is rrodentia
aM Isn MW"d by
The MBry Bwelwr Is
end is mw"sabd by=aQiMGG—it
squatty by Bmkan ("note" sbdaa a D
aced odvewyham cowdY m ootlway. Cabe
n"aniwm 1ndwwwrawass,•
. =013te
last, end aelee In to n1MPmp"
go awn of Doan mftmwn of
"mods-.
a oommatlon m"agent
COMMISSION IN EVENT OF AN OVERBID BY ANOTHER BROKER: In the event avert co diwil"n of the sale it nquked. tha aVnd "WN
8fdW I"dttled above 49te , m was, wO DonnHslon dtlt" In the ewM of�A uoc""A ovwbid In DoRt by a ohm, M bvY*r M VW*d by
ano bmkK Onplml SNgno Agent'sAaknOMedwnentUsting ABemy AamDwwdYnentt a
Lld4 WOW Amecil m Deep3 : 9 rr'rr
Rrm Prudential California Realty (ItiTs: 6,
Clarence Tomblic ae ( ,(Agery
OFFwa uee oat
ne.M.aaewsr>Puw.._ ■�.
iaimi.ea siriww wameawo- +• Pepe MAPS.
GFOOM QCF'Y wen s,
BID MR PURCHASE OF REAL PROPETITV (PBP_14 PAGE A DP 41
•ell 0 n J 7
ADDENDUM TO PURCHASE AGREEMENT
This Addendum to Purchase Agreement (hereinafter called "Agreement") is entered into on
this 11th dayof March, 2011, by and between the City of La Quinta, a California municipal
rogation and charter city, (hereinafter "Buyer") and Thomas H. Casey, as Chapter 7
Trustee for the estate of: Michael Anthony, Fischer, Sr. Casa No 8.10:bir23883-ES
(hereinafter called "Seller" or "Trustee") pursuant to the terns and conditions as follows:
BSI
WHEREAS: The Debtor in the bankruptcy proceeding entitled Michael Anthony Fischer
Sr Case No 8:10:bk:23883-ES is the owner of record of certain real property commonly
known as: 78180 Avenue La Fonda La Quints California 92253• AP 0 770 124-007
(Hereinafter the "Subject Property'),
WHEREAS: On September 30, 2010, the Debtor filed a voluntary petition seeking relief
pursuant to Chapter 7 of Title 11, of the United States Bankruptcy Code,
WHEREAS: As a result of the filing of the Chapter 7 petition, Thomas H. Casey, was
appointed as the Trustee to administer the assets of the bankruptcy estate, one of which
was the Debtor's Interest in the Subject Property.
WHEREAS: Pursuant to 11 U.S,C. Section 363, Thomas H. Casey, Chapter 7 Trustee
and/or his attorneys will seek a Court Order authorizirvg the sale of the Subject Property.
NOW THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
CONDITIONS OF SALE
1. CourtApproval Seller agrees to proceed In good faith to obtain Court approval for
the sale of property located at 78180 Avenue Le Fonda. La Quints, California 92253-, AP
# 770-124-00T, contemplated herein, within a reasonable time period after said offer.
2. Broker's Compensation: Brokers and Agents are entitled to compensation only upon
recordation of a deed or other evidence of title.
S�F9
V9a
3. No Asslanment: This agreement is between Buyer and Seller. Buyer shall have no
right to assign the Escrow, this agreement, or transfer the Subject Property concurrent with
dosing without consent of Seller.
4. Tide Insurance: The tide Insurance policy shall be subject only to liens,
encumbrances, clouds and other matters as may appear on the preliminary title report, that
are not to be removed at the close of Escrow, and have not been objected to by Buyer.
Should Seller be unwilling or unable to eliminate those title matters disapproved by Buyer
as above, the Seller may terminate this Agreement or, should Seller fad to delivergood and
marketable title as provided above, Seller or Buyer may terminate this Agreement. in
either case, the Buyer's deposit shall be retumed to Buyer, and Buyer shall have no
recourse against Seller, Thomas H. Casey, as Bankruptcy Trustee, Individually, orthe Law
Office of Thomas H. Casey Inc., the bankruptcy estate of: Michael Anthony Fischer, Sr.
Case No 8:10:bk:23883-ES, or the Debtor, or any real estate agent, broker or attorney
involved in this transaction.
5. Limitations of Sale: The parties acknowledge that the operation of the law has
placed the Bankruptcy Trustee in a unique role asthe Sellerof the Subject Property, which
Is the subject of this agreement. Due to the nature of the Trustee's role in administering
the bankruptcy estate, there are limitations as to the extent, type and character of the
agreement under which the Trustee can convey the Subject Property. The Trustee
proposes to sell this asset subject to certain limitations. The parties hereby acknowledge
that they understand the terms under which this Subject Property is to be conveyed may
vary substantially from the normal customs and trade within the real estate industry.
Except where expressly mandated by operation of law, the Buyer consents to any such
modifications and amendments.
8. Purchase without Warranties: Buyers acknowledge that they are purchasing the
Subject Property from the Seller "AS IS" without warranties of any kind, expressed or
Implied, being given by the Seiler, concerning the condition of the property orthe quality of
the title thereto, or any other matters relating to the Property. Buyer represents and
warrants that they are purchasing the Subject Property as a result of their own
Investigations and are not buying the Subject Property pursuant to any representation
made by any Broker, Agent, Accountant, Attomeyor Employee acting at the direction or on
the behalf of the Seller.
4 of 4
'wn. O ^ 9 9
7. Trustee's UabIk1 : Buyer acknowledges that the Trustee Is acting in his official
capacity only. No personal liability shall be sought or enforced against the Trustee with
regard to this Agreement, Including the Addendum, the assets, the sale of the Subject
Property, or the physical condition of the Subject Property. In the event that the Trustee
falls or refuses to complete the transaction for any reason, then the limit of the Trustee's
liability is only to return any money paid to the Trustee by the Buyer, without deduction.
Priorto and after the closing of escrow, the United States Bankruptcy Court shall have and
retain the sole and exclusive jurisdiction over the Assets of this transaction and Agreement;
and all disputes arising before and after closing shall be resolved in said Court.
8. Any and all disputes, which involve in any manner the Bankruptcy Estate or
Thomas H. Casey, arising from this Purchase Contract, this Addendum or relating
In any manner to the Subject Property, shall be resolved only in the United States
Bankruptcy Court, Central District of California, Santa Ana Division.
g. Seller will not provide a pest control report nor pay for any corrective work; nor shall .
Buyer receive any credit for corrective work.
10. Buyer is aware that this offer is contingent upon Chapter 7 Bankruptcy Trustee
approval, Bankruptcy Court confirmation & overbid procedures.
11. Buyer has NO CONTINGENCIES in this transaction; Including but not limited to the
contingency of obtaining financing & appraisal, inspections, etc. Except as Indicated
in 11. A. 1 & 2 below
Deposit is refundable only if Bankruptcy Court accepts overbid or if court does not
approve this sale or as per items 4 and 12 of this addendum.
-7 OPI
'00. Oico
11. A. 1. This transaction and Agreement is subject to the final approval of the La
Quints Redevelopment Agency Board of Directors at their next available meeting.
Should this transaction not be approved at such meeting, then upon such notice
by Buyer this Agreement and the Escrow shall be automatically canceled, Buyer
shall receive a refund of their deposit less any charges Incurred on their behalf by
the Title or Escrow Company, and neither party shall have any further liability to
the other in connection with this Agreement and the Escrow.
11. A. 2. This transaction Is subject to the availability of the City of La Quinta's
Redevelopment Agency Funds to complete the purchase. Should the State of
California (or any other agency) restrict or limit these funds, or otherwise cause
these funds to no longer be available to the City of La Qulnta at any time prior to
the close of escrow, then upon such notice from Buyer, this Agreement and the
Escrow shall be automatically canceled, Buyer shall receive a refund of their
deposit less any charges incurred on their behalf by the Title or Escrow
Company, and neither party shall have any further liability to the other in
connection with this Agreement and the Escrow.
12. The Seller shall deliver to the Buyer Tenant Estoppel Certificates completed
by Seiler or:sauses agent, and signed by tenants, acknowledging: (1) that tenants'
rental .agreements -are unmodified and In full force and effect (or of modified,
stating all such modifications); (11) that no lessor defaults exist; (ill) Stating the
amount of prepaid rent or security deposit.
I& if Buyer falls to complete this purchase because of Buyer's default, Seller
shall retain, as LiquidatedDamages, the deposit actually paid. Release of funds
will require mutual, signed release Instructions from both Buyer and Seiler,
judicial decision, or arbitration award.
14. Any and all personal Items belonging to the tenants are NOT Included as part
of the sale.
"• 0101
1 S, Sale is contingent upon Bankruptcy Trustee securing approval of this sale by all
secured creditors.
1 ti. In addition to the $10,000 deposit, Buyer will deposit the additional sum of $ 9.68-
into escrow on or before the close of escrow.
1, the Buyer herein, have reviewed the foregoing Agreement and understand the V terms and conditions set forth herein, and further agree to purchase the Subject
Property pursuant to said terns and conditions.
Dated: 3/11/2011 f ��.�VX/Gd�
see Attached Signature Page, Buyer
Thomas P. Genovese, City Manager
1, Seiler, agree to sell the Subject Property
forth herein.
Dated: �14 ran 1 tr Ok oI 1
SO AGREED.
to the terms and conditions set,
Thomas H. Casey, in his sole as
Bankruptcy Trustee for the Estate of:
Michael Anthony Fischer Sr Case No
8:10:bk:23883-ES, and not in his
Individual capacity or a member of the
Law Office of Thomas H. Casey, Inc.
Dated:
Claren6e lWoshlkane, Trustee's Agent
Prudentia California Realty,
2405 McCabe Way, Suite 100
Irvine, CA 92614
7%606.5765, Direct Una
Cis rence.Yoshikane ma11.com
`
Dated: 3 1 l `t t
i
Bruce Cathc r;, Buys Ls Agent
La Quints Pa ma Realty,
51001 Eisenhower Dr., La Quints, CA 9=53
(760) 564-4104 laquinatpaims@dc.rr.com
gofI
.00. 0102
Property Address: ?81 tO AveKAq L✓t
LA 6)va.,,`�-y. ,C& . 4L7r
IN WITNESS WHEREOF, Buyer and Self each hereby represents that it has read this
Agroomcat, understands it, and hereby executes this Agreement to be effective as of the day and
year first written above.
ATTEST:
City Clerk
APPROVED AS TO FORM:
RUTAN.&TUCKER LLP
City Attorney
BUYER:
CITY OF LA QUINTA, a California municipal
corporation and charter city
B L4* - � e
Thomas P. Genovese, City Manager
..Of. 0103
4 4a Q9!Krcv
C
`y OF Tt�
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: A Joint Public Hearing Among the City
Council of the City of La Quinta, the La Quinta
Redevelopment Agency and the La Quinta Financing
Authority to Consider Resolutions Regarding the
Issuance of Redevelopment Project Areas 1 and 2
Taxable Bonds and Related Documents
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
1. Open the Joint Public Hearing of the City Council, Redevelopment Agency and
the Financing Authority, receive a staff presentation, and public testimony both
for and against, the approval of the recommended Resolutions;
2. Close the Joint Public Hearing after all testimony has been presented; and
3. Adopt the recommended Resolutions.
FISCAL IMPLICATIONS:
The Agency will receive approximately:
$27,830,000 in Bond proceeds to use for non -housing projects in Project Area
No. 1, net of bond reserve funds and issuance costs;
$4,275,000 in Bond proceeds to use for non -housing projects in Project Area No.
2, net of bond reserve funds and issuance costs;
$11,000,000 in Bond proceeds to use for low and moderate income housing in
both Project Areas, net of bond reserves and issuance costs; and
An additional $25,370,000 in Loan proceeds to use for low and moderate income
housing in both Project Areas, net of bond reserves and issuance costs.
CHARTER CITY IMPLICATIONS:
None.
0104
BACKGROUND AND OVERVIEW:
In order to fund its projects and programs, the Agency has issued tax allocation bonds
from time to time secured by tax increment revenue of the La Quinta Redevelopment
Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. Because its
ability to issue debt in the future may soon be limited or prohibited altogether by the
State Legislature, the Agency proposes to access its available bonding capacity by
issuing bonds at this time for economic development, low- and moderate -income
housing and capital projects.
The Bonds are proposed to be issued on a taxable basis. Although taxable interest
rates are higher than traditional tax-exempt rates, there are very few restrictions on the
types of expenditures that may be made with taxable bonds. In particular, unspent
taxable bond proceeds may be used to pay future Supplemental Educational Revenue
Augmentation Fund (SERAF) payments, pay for Agency administration costs and other
non -capital expenditures.
Staff and the other finance team members have discussed a Financial Plan for the
Agency that demonstrates that there will be remaining revenue available after meeting
all existing obligations to sufficiently pay debt service on the bonds to be issued. The
Financial Plan assumes no additional SERAF payments after Fiscal Year 2010-201 1,
but there is a certain amount of available funds each year to deal with such an event,
if it were to occur.
Staff is recommending a negotiated sale of the bonds to one underwriter based on
current market conditions. A negotiated sale allows the underwriter to pre -market the
bonds to their investors, which reduces their risk of holding a large balance of
inventory in the bonds. This allows the underwriter to offer lower rates for the
Agency. Further, the market for taxable bonds is now mainly composed of investors
who are new to the municipal market, have questions about the State budget, and
need more time to analyze municipal credits, which reinforces the need to select one
underwriter who can work with such investors and obtain the lowest interest rates
possible.
Based on current market conditions and the Agency's previous credit ratings, the
underwriter expects the average interest rate on the taxable bonds to be 8.50%.
Because the market expects a significant amount of tax allocation bonds to be sold in
the next: 60 days, (20 tax allocation financings sold in the past seven days) interest
rates could increase between now and the sale date due to supply versus demand
market issues.
Staff expects ratings to be received and bonds to be sold in approximately three
weeks. The all inclusive costs of issuing the bonds are not expected to exceed 1'/z %.
0105
The attached resolutions provide for the following:
• Approves the issuance of a loan between the La Quinta Financing Authority and the
La Quinta Redevelopment Agency;
• Approves the Preliminary Official Statement for each of the four financings;
• Approves the Bond Purchase Contract for each of the four financings;
• Authorizes the Executive Director to establish the final terms of each of the four
financings;
• Appoints U.S. Bank National Association as trustee for each of the four financings;
• Provides for a Continuing Disclosure Agreement for each of the four financings;
• Pledges Project No. 1 and No. 2 tax increment revenue to service each financing's
principal and interest costs;
• Authorizes the officers of the Agency and members of the Governing Body to take
such actions and execute documents necessary to facilitate each of the four
financings; and
• Finds that the financings will provide significant public benefit.
Please note that due to the number and length of the documents involved in these
bond issue financings these documents are available in the City Clerk's office for
review.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council, the La Quinta Redevelopment Agency
and the La Quinta Finance Authority include:
1. Approve the followings resolutions, subject to final approval by the Executive
Director, regarding the Issuance of Redevelopment Project Areas 1 and 2 Taxable
Bonds and Related Documents listed as follows:
City Resolutions
• A Resolution of the City Council Of The City Of La Quinta, California Approving
the Issuance by the La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Area No. 1, Taxable Tax Allocation Bonds, Series 2011
and Making Certain Determinations Relating Thereto;
A Resolution of The City Council of The City Of La Quinta, California, Approving
the Issuance By The La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Area No. 2 Taxable Tax Allocation Bonds, Series 2011
and Making Certain Determinations Relating Thereto; and
0106
• A Resolution of the City Council of the City of La Quinta, California, Approving
the Issuance by the La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Areas, Taxable Tax Allocation Housing Bonds, Series
2011 and Making Certain Determinations Relating Thereto; and
A Resolution of the City Council of the City of La Quinta, California, Approving
a Loan between the La Quinta Redevelopment Agency and the La Quinta
Financing Authority.
Agency Resolutions
A Resolution of the Board Of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Bonds of Said Agency in a
Principal Amount of not to exceed Thirty -Three Million Dollars ($33,000,000) to
Finance a Portion of the Costs of a Redevelopment Project Known as the La
Quinta Redevelopment Project Area No. 1 and Approving Certain Documents
and Taking Certain Other Actions in Connection Therewith;
• A Resolution of the Board of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Bonds of Said Agency in a
Principal Amount of not to exceed Six Million Dollars ($6,000,000) to Finance a
Portion of the Costs of a Redevelopment Project Known as the La Quinta
Redevelopment Project Area, No. 2 and Approving Certain Documents and
Taking Certain Other Actions in Connection Therewith;
• A Resolution of the Board of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Housing Bonds of Said
Agency in a Principal Amount of not to exceed Twelve Million Dollars
($12,500,000) to Finance a Portion of the Low And Moderate Housing Costs of
Redevelopment Projects and Approving Certain Documents and Taking Certain
Other Actions in Connection Therewith; and
• A Resolution of the La Quinta Redevelopment Agency of the City of La Quinta,
California Approving its Second Supplemental Loan Agreement, Official
Statement, Purchase Contract, Authorizing the Executive Director to Set the
Final Terms of the Approval of the Agency Loan, Approving The Payment of
Costs of Issuing the Agency Loan and Making Certain Determinations Relating
Thereto.
Authority Resolutions
• A Resolution of the La Quinta Financing Authority of the City of La Quinta,
California Authorizing the Issuance of Local Agency Taxable Revenue Bonds,
0117
2011 Series A, in an Aggregate Principal Amount not to exceed Twenty -Eight
Million Eight Hundred and Fifty Thousand Dollars ($28,850,000) Approving the
Execution of an Indenture of Trust, Second Supplemental Loan Agreement,
Purchase Contract, Official Statement and Providing Other Matters Properly
Related Thereto.
2. Do not approve the above listed resolutions regarding the Issuance of
Redevelopment Project Areas 1 and 2 Taxable Bonds and Related Documents; or
3. Provide Staff with alternative direction.
Respectfully submitted,
404
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
0103
RESOLUTION NO. RA 2011 -
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF
TAXABLE TAX ALLOCATION BONDS OF SAID AGENCY IN A
PRINCIPAL AMOUNT OF NOT TO EXCEED THIRTY-THREE MILLION
DOLLARS ($33,000,000) TO FINANCE A PORTION OF THE COSTS
OF A REDEVELOPMENT PROJECT KNOWN AS THE LA QUINTA
REDEVELOPMENT PROJECT AREA NO. 1 AND APPROVING CERTAIN
DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the La Quinta _Redevelopment Agency (the "Agency"), is -a
redevelopment agency (a public body, corporate and politic) duly created,
established and authorized to transact business and exercise its powers, all under
and pursuant to the Community Redevelopment Law (Part 1 of Division 24
(commencing with Section 33000) of the Health and Safety Code of the State of
California) and the powers of the Agency include the power to issue bonds for any
of its corporate purposes; and
WHEREAS, the Redevelopment Plan for a redevelopment project known and
designated as "La Quinta Redevelopment Project Area No. 1 " has been adopted
and approved by Ordinance No. 43 of the City of La Quinta, which became
effective on December 29, 1983, and all requirements of law for and precedent to
the adoption and approval of the Redevelopment Plan have been duly complied
with; and
WHEREAS, pursuant to Resolution No. RA 85-5 the Agency issued Twenty
Million Dollars ($20,000,000) of "La Quinta Redevelopment Agency, La Quinta
Redevelopment Project, Tax Allocation Bonds, Series 1985" (the "Series 1985
Bonds"); pursuant to Resolution No. RA 88-14 the Agency issued Eight Million
Dollars ($8,000,000) of Tax Allocation Bonds, Series 1989 (the "Series 1989
Bonds"); pursuant to Resolution No. RA 90-4 the Agency issued Nineteen Million
Six Hundred Ninety -Five Thousand Dollars ($19,695,000) of Tax Allocation
Refunding Bonds, Series 1990 (the "Series 1990 Bonds"); pursuant to Resolution
No. RA 91-12 the Agency issued Eight Million Seven Hundred Thousand Dollars
($8,700,000) of Tax Allocation Bonds, Series 1991 (the "Series 1991 Bonds");
pursuant to an indenture of Trust, dated as of May 1,1994, between the Agency
and Bank of America National Trust and Savings Association (the "1994
Indenture"),the Agency issued Twenty -Six Million Six Hundred Sixty Five Thousand
Dollars ($26,665,000) of Tax Allocation Bonds, Series 1994 (the "Series 1994
Bonds"); pursuant to Resolution No. RA 98-01 the Agency issued Fifteen Million
Seven Hundred Sixty Thousand Dollars ($15,760,000) of Tax Allocation Refunding
Bonds, Series 1998 (the "Series 1998 Bonds"); pursuant to Resolution No. RA
124/015610-0122 ^
1158645,02 a03/09/11 0109 9
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 2
2001-03 the Agency issued Forty -Eight Million Dollars ($48,000,000) of Tax
Allocation Bonds, Series 2001 (the "Series 2001 Bonds"); pursuant to Resolution
No. RA 2002-08 the Agency issued Forty -Million Dollars of Tax Allocation Bonds,
Series 2002 (the "Series 2002 Bonds"); and pursuant to Resolution No. 2003-14
the Agency issued its Twenty -Six Million Four Hundred Thousand Dollars of
Taxable Tax Allocation Bonds, Series 2003 (the "Series 2003 Bonds").
WHEREAS, in order to raise additional funds for the implementation of the
Redevelopment Plan, the Agency deems it necessary at this time to issue allocation
bonds on a parity with the Series 1994 Bonds, Series 1998 Bonds, Series 2001
Bonds, Series 2002 Bonds and the Series 2003 Bonds for such purpose; and _
WHEREAS, the corporate purposes of the Agency will be accomplished by
issuing at this time taxable tax allocation parity bonds in a principal amount of not
to exceed Thirty Three Million Dollars ($33,000,000) pursuant to this Resolution
and a supplemental hereto to be designated "La Quinta Redevelopment Agency, La
Quinta Redevelopment Project Area No. 1, Taxable Tax Allocation Bonds, Series
2011 (the "Bonds"); and
WHEREAS, the Agency is authorized to issue the Bonds pursuant to the
Community Redevelopment Law of the State of California (being Part 1 of Division
24 of the Health and Safety Code of the State of California, as amended) (the
"Law"); and
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE
AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and this Board so finds
and determines.
Section 2. The issuance of the Bonds in the principal amount of not to exceed
Thirty -Three Million Dollars ($33,000,000) is hereby authorized. The Bonds shall
mature on the dates, pay interest at the rates, shall be subject to redemption and
shall be governed by the terms and conditions set forth in an Indenture of Trust,
dated as of March 1, 2011, (the "Indenture") to be prepared by Bond Counsel to
the Agency and executed by the Chair or Executive Director or Finance Director
and Secretary of the Agency (herein "Chair," "Executive Director," "Finance
Director rand "Secretary" respectively), which Indenture shall be substantially in
the form on file with the City Clerk, with such additions thereto and changes
therein as are recommended or approved by Bond Counsel to the Agency and the
officers executing the same, with such approval to be conclusively evidenced by
124/015610-0122 0110
1158645 02 a03/D9/11
Resolution No, RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 3
the execution and delivery of the Indenture. Capitalized terms used in this
Resolution which are not defined herein have the meaning ascribed to them in the
Indenture on file in the office of the City Clerk. The Chair, the Executive Director,
the Finance Director, the Secretary, or their designees are hereby authorized and
directed to execute and deliver the Indenture.
Section 3. The Bonds shall be executed on behalf of the Agency by the manual or
facsimile signature of the Chair or Executive Director and attested with the manual
or facsimile signature of the Secretary.
Section 4. The covenants set forth in the Indenture to be executed in accordance
with Section 2 above are hereby approved, shall be deemed to be covenants of the
Agency and shall be complied with by the Agency and its officers. The Indenture
shall constitute a contract between the Agency and the Owners of the Bonds.
Section 5. U. S. Bank, National Association, Los Angeles, California, is hereby
appointed to act as Trustee for the Bonds. The Executive Director of the Agency,
or his written designee, is hereby authorized to enter into an agreement with the
Trustee to provide such services to the Agency.
Section 6. The Purchase Contract by and between the Agency, the Authority and
the Underwriter on file with the Secretary offering to purchase the Bonds to bear
interest as set forth in the Indenture is hereby approved and the Executive Director
or Finance Director is authorized to execute and deliver the Purchase Contract in
said form with such changes thereon as the officers executing the same may
approve, such approval to be conclusively evidenced by the execution and delivery
thereof.
Section 7. The Chair or Executive Director or Finance Director is authorized to
execute a final Official Statement in substantially the form of the preliminary
Official Statement, and Continuing Disclosure Agreement relating thereto, which
have been presented at this meeting and are hereby approved, with such additions
thereto and changes therein as are recommended or approved by Bond Counsel to
the Agency and the officer executing the same, with such approval to be
conclusively evidenced by the execution and delivery of such documents. The
Underwriter is hereby authorized to distribute the Preliminary Official Statement to
prospective purchasers of the Bonds and to provide to the purchasers of the Bonds
from the Underwriter copies of the final Official Statement. The Executive Director
or Finance Director is hereby authorized to sign a certificate pursuant to Rule 15c2-
12 promulgated under the Securities Exchange Act of 1934 pertaining to the
Preliminary Official Statement.
124/015610-0122 0 111
1159645.02 AN09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 4
Section 8. Each and every officer of the Agency is authorized to perform his or her
services on behalf of the Agency. The Executive Director or Finance Director, or his
written designee, is authorized to incur such costs and to contract for all services
necessary to affect the issuance of the Bonds. Such services shall include, but not
be limited to, printing the Bonds, printing the Preliminary Official Statement and the
Official Statement, obtaining legal services, fiscal agent services and any other
services deemed appropriate for the issuance of the Bonds including, without
limitation, the costs of Bond Insurance, and Rating Agency Services (referred to in
the Indenture as "Costs of Issuance")and the payment for said Costs of Issuance
shall be approved by the Executive Director or Finance Director. The Executive
Director or Finance Director, or his written designee, -is authorized to pay for such
Costs of Issuance with Bond proceeds established pursuant to the Indenture
without further approval of this Board of Directors.
Section 9. All actions heretofore taken by officers and agents of the Agency with
respect to the sale and issuance of the Bonds are hereby approved, confirmed and
ratified, and the Chair and Secretary and the other officers of the Agency
responsible for the fiscal affairs of the Agency are hereby authorized and directed
to take any actions and execute and deliver any and all certificates, instruments,
agreements and documents as are necessary to accomplish the issuance, sale and
delivery of the Bonds in accordance with the provisions of this Resolution and the
fulfillment of the purposes of the Bonds as described in the Indenture as
determined by Bond Counsel. In the event that the Chair or Executive Director
is/are unavailable to sign any document authorized for execution herein, the
Finance Director shall sign such document. Any document authorized herein to be
signed by the Secretary may be signed by a duly appointed deputy secretary.
Section 10. The Agency hereby determines that interest payable on the Bonds will
be subject to federal income taxation, and that the provisions of Section 5900 et
seq. of the California Government Code (the "Taxable Bond Act") apply to the
Bonds. The Agency may take any action and exercise any power permitted to be
taken by it under the Taxable Bond Act in connection with the issuance and sale of
the Bonds as may be deemed advisable by the Executive Director.
PASSED, APPROVED and ADOPTED this 15th day of March, 2011, by the
following vote:
AYES:
NOES:
0112
124/015610-0122
1158645 02 a03/D9/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 5
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(Agency Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, General Counsel
La Quinta Redevelopment Agency
24/015610-0122 0113
1158645.02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 6
SECRETARY'S CERTIFICATE
RE: ADOPTION OF RESOLUTION
STATE OF CALIFORNIA 1
)ss.
COUNTY OF RIVERSIDE
I, VERONICA MONTECINO, Secretary of the La Quinta Redevelopment
Agency, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by
said Agency at a regular meeting of said Agency held on the 15th day of March,
2011.
AYES:
NOES:
ABSENT:
ABSTAIN:
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
STATE OF CALIFORNIA ►
)ss.
COUNTY OF RIVERSIDE
I, VERONICA J. MONTECINO, Secretary of the La Quinta Redevelopment
Agency, DO HEREBY CERTIFY that the above and foregoing is a full, true and
correct copy of Resolution No. RA of said Agency and that said Resolution
was adopted at the time and by the vote stated on the above certificate, and has
not been amended or repealed.
Dated: 2011
0114
124/015610-0122
1158645.02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 1
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 7
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
124/015610.0122 �.. 0115
1158645.02 a03/09/11
RESOLUTION NO. RA 2011 -
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF
TAXABLE TAX ALLOCATION BONDS OF SAID AGENCY IN A
PRINCIPAL AMOUNT OF NOT TO EXCEED SIX MILLION DOLLARS
($6,000,000) TO FINANCE A PORTION OF THE COSTS OF A
REDEVELOPMENT PROJECT KNOWN AS THE LA QUINTA
REDEVELOPMENT PROJECT AREA NO. 2 AND APPROVING CERTAIN
DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the La Quinta Redevelopment Agency (the "Agency"), is --a
redevelopment agency (a public body, corporate and politic) duly created,
established and authorized to transact business and exercise its powers, all under
and pursuant to the Community Redevelopment Law (Part 1 of Division 24
(commencing with Section 33000) of the Health and Safety Code of the State of
California) and the powers of the Agency include the power to issue bonds for any
of its corporate purposes; and
WHEREAS, the Redevelopment Plan for a redevelopment project known and
designated as "La Quinta Redevelopment Project Area No. 2" has been adopted
and approved by Ordinance No. 139 of the City of La Quinta, which became
effective on June 15, 1989, and all requirements of law for and precedent to the
adoption and approval of the Redevelopment Plan have been duly complied with;
and
WHEREAS, in order to raise additional funds for the implementation of the
Redevelopment Plan, the Agency deems it necessary at this time to issue taxable
allocation bonds on a parity with the 1998 Bonds for such purpose; and
WHEREAS, the corporate purposes of the Agency will be accomplished by
issuing at this time tax allocation parity bonds in a principal amount of not to
exceed Six Million Dollars ($6,000,0O0) pursuant to this Resolution and a
supplemental hereto to be designated "La Quinta Redevelopment Agency, La
Quinta Redevelopment Project No. 2, Taxable Tax Allocation Bonds, Series 2011
(the "Bonds"); and
WHEREAS, the Agency is authorized to issue the Bonds pursuant to the
Community Redevelopment Law of the State of California (being Part 1 of Division
24 of the Health and Safety Code of the State of California, as amended) (the
"Law"); and
0116
124/015610.0122.
1158681.02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 2
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 2
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE
AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and this Board so finds
and determines.
Section 2. The issuance of the Bonds in the principal amount of not to exceed Six
Million Dollars ($6,000,000) is hereby authorized. The Bonds shall mature on the
dates, pay interest at the rates, shall be subject to redemption and shall be
governed by the terms and conditions set forth in an Indenture of Trust, dated as
of March 1, 2011, (the "Indenture") to be prepared by Bond Counsel to the Agency
and executed by the Chair or Executive Director or Finance Director and Secretary
of the Agency (herein "Chair," "Executive Director," "Finance Director' and
"Secretary" respectively), which Indenture shall be substantially in the form on file
with the City Clerk, with such additions thereto and changes therein as are
recommended or approved by Bond Counsel to the Agency and the officers
executing the same, with such approval to be conclusively evidenced by the
execution and delivery of the Indenture. Capitalized terms used in this Resolution
which are not defined herein have the meaning ascribed to them in the Indenture
on file in the office of the City Clerk. The Chair, the Executive Director, the Finance
Director, the Secretary, or their designees are hereby authorized and directed to
execute and deliver the Indenture.
Section 3. The Bonds shall be executed on behalf of the Agency by the manual or
facsimile signature of the Chair or Executive Director and attested with the manual
or facsimile signature of the Secretary.
Section 4. The covenants set forth in the Indenture to be executed in accordance
with Section 2 above are hereby approved, shall be deemed to be covenants of the
Agency and shall be complied with by the Agency and its officers. The Indenture
shall constitute a contract between the Agency and the Owners of the Bonds.
Section S. U. S. Bank, National Association, Los Angeles, California, is hereby
appointed to act as Trustee for the Bonds. The Executive Director of the Agency,
or his written designee, is hereby authorized to enter into an agreement with the
Trustee to provide such services to the Agency.
Section 6. The Purchase Contract by and between the Agency and the Underwriter
on file with the Secretary offering to purchase the Bonds to bear interest as set
forth in the Indenture is hereby approved and the Executive Director or Finance
Director is authorized to execute and deliver the Purchase Contract in said form
124,015610-0122 0117
1158681.02 AVOW] I
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 2
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 3
with such changes thereon as the officers executing the same may approve, such
approval to be conclusively evidenced by the execution and delivery thereof.
Section 7. The Chair or Executive Director or Finance Director is authorized to
execute a final Official Statement in substantially the form of the preliminary
Official Statement, and Continuing Disclosure Agreement relating thereto, which
have been presented at this meeting and are hereby approved, with such additions
thereto and changes therein as are recommended or approved by Bond Counsel to
the Agency and the officer executing the same, with such approval to be
conclusively evidenced by the execution and delivery of such documents. The
_ Underwriter is hereby authorized to distribute the Preliminary Official Statement to
prospective purchasers of the Bonds and to provide to the purchasers of the Bonds
from the Underwriter copies of the final Official Statement. The Executive Director
or Finance Director is hereby authorized to sign a certificate pursuant to Rule 15c2-
12 promulgated under the Securities Exchange Act of 1934 pertaining to the
Preliminary Official Statement.
Section 8. Each and every officer of the Agency is authorized to perform his or her
services on behalf of the Agency. The Executive Director or Finance Director, or his
written designee, is authorized to incur such costs and to contract for all services
necessary to affect the issuance of the Bonds. Such services shall include, but not
be limited to, printing the Bonds, printing the Preliminary Official Statement and the
Official Statement, obtaining legal services, fiscal agent services and any other
services deemed appropriate for the issuance of the Bonds including, without
limitation, the costs of Rating Agency Services (referred to in the Indenture as
"Costs of Issuance") and the payment for said Costs of Issuance shall be approved
by the Executive Director or Finance Director. The Executive Director or Finance
Director, or his written designee, is authorized to pay for such Costs of Issuance
with Bond proceeds established pursuant to the Indenture without further approval
of this Board of Directors.
Section 9. All actions heretofore taken by officers and agents of the Agency with
respect to the sale and issuance of the Bonds are hereby approved, confirmed and
ratified, and the Chair and Secretary and the other officers of the Agency
responsible for the fiscal affairs of the Agency are hereby authorized and directed
to take any actions and execute and deliver any and all certificates, instruments,
agreements and documents as are necessary to accomplish the issuance, sale and
delivery of the Bonds in accordance with the provisions of this Resolution and the
fulfillment of the purposes of the Bonds as described in the Indenture as
determined by Bond Counsel. In the event that the Chair or Executive Director
is/are unavailable to sign any document authorized for execution herein, the
Finance Director shall sign such document. Any document authorized herein to be
signed by the Secretary may be signed by a duly appointed deputy secretary.
124/015610-0122 0118
1158681 02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 2
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 4
Section 10. The Agency hereby determines that interest payable on the Bonds will
be subject to federal income taxation, and that the provisions of Section 5900 et
seq. of the California Government Code (the "Taxable Bond Act") apply to the
Bonds. The Agency may take any action and exercise any power permitted to be
taken by it under the Taxable Bond Act in connection with the issuance and sale of
the Bonds as may be deemed advisable by the Executive Director.
PASSED, APPROVED and ADOPTED this 15th day of March, 2011, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chairperson
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(Agency Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
01A
124/015610-0122
1158681,02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Bonds - Project Area 2
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 5
SECRETARY'S CERTIFICATE
RE: ADOPTION OF RESOLUTION
STATE OF CALIFORNIA 1
)ss.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said
Agency at a regular meeting of said Agency held on the 15th day of March, 2011 .
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica J. Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
STATE OF CALIFORNIA 1
1ss.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy
of Resolution No. RA of said Agency and that said Resolution was adopted at
the time and by the vote stated on the above certificate, and has not been
amended or repealed.
Dated: 2011
Veronica Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
0120
,24/015610-0122
1158681 02 a0310911I
RESOLUTION NO. RA 2011 -
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF
TAXABLE TAX ALLOCATION HOUSING BONDS OF SAID AGENCY IN
A PRINCIPAL AMOUNT OF NOT TO EXCEED TWELVE MILLION FIVE
HUNDRED THOUSAND DOLLARS (512,500,000) TO FINANCE A
PORTION OF THE LOW AND MODERATE HOUSING COSTS OF
REDEVELOPMENT PROJECTS AND APPROVING CERTAIN
DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the La Quinta Redevelopment Agency (the "Agency"), is a
redevelopment agency (a .public body, corporate and politic) duly created,
established and authorized to transact business and exercise its powers, all under
and pursuant to the Community Redevelopment Law (Part 1 of Division 24
(commencing with Section 33000) of the Health and Safety Code of the State of
California) and the powers of the Agency include the power to issue bonds for any
of its corporate purposes; and
WHEREAS, in order to raise additional funds for the implementation of the
low and moderate housing elements of its Redevelopment Plans, the Agency deems
it necessary at this time to issue allocation bonds on a parity with the 1994 Bonds,
2004 Authority Bonds, 2011 Authority Bonds for such purpose; and
WHEREAS, the corporate purposes of the Agency will be accomplished by
issuing at this time tax allocation parity bonds in a principal amount of not to
exceed Twelve Million Five Hundred Thousand Dollars ($12,500,000) pursuant to
this Resolution and a supplemental hereto to be designated "La Quinta
Redevelopment Agency, La Quinta Redevelopment Projects, Taxable Tax Allocation
Housing Bonds, Series 2011 (the "Bonds"); and
WHEREAS, the Agency is authorized to issue the Bonds pursuant to the
Community Redevelopment Law of the State of California (being Part 1 of Division
24 of the Health and Safety Code of the State of California, as amended) (the
"Law"); and
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LA QUINTA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE
AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and this Board so finds
and determines.
124/015610-0122 • o z 1
1158732 02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Housing Bonds
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 2
Section 2. The issuance of the Bonds in the principal amount of not to exceed
Twelve Million Five Hundred Thousand Dollars ($12,500,000) is hereby authorized.
The Bonds shall mature on the dates, pay interest at the rates, shall be subject to
redemption and shall be governed by the terms and conditions set forth in an
Indenture of Trust, dated as of March 1, 2011, (the "Indenture") to be prepared by
Bond Counsel to the Agency and executed by the Chair or Executive Director or
Finance Director and Secretary of the Agency (herein "Chair," "Executive Director,"
"Finance Director" and "Secretary" respectively), which Indenture shall be
substantially in the form on file with the City Clerk, with such additions thereto and
changes therein as are recommended or approved by Bond Counsel to the Agency
_.-and the officers executing the same, with such approval to be conclusively
evidenced by the execution and delivery of the Indenture. Capitalized terms used in
this Resolution which are not defined herein have the meaning ascribed to them in
the Indenture on file in the office of the City Clerk. The Chair, the Executive
Director, the Finance Director, the Secretary, or their designees are hereby
authorized and directed to execute and deliver the Indenture.
Section 3. The Bonds shall be executed on behalf of the Agency by the manual or
facsimile signature of the Chair or Executive Director and attested with the manual
or facsimile signature of the Secretary.
Section 4. The covenants set forth in the Indenture to be executed in accordance
with Section 2 above are hereby approved, shall be deemed to be covenants of the
Agency and shall be complied with by the Agency and its officers. The Indenture
shall constitute a contract between the Agency and the Owners of the Bonds.
Section 5. U. S. Bank, National Association, Los Angeles, California, is hereby
appointed to act as Trustee for the Bonds. The Executive Director of the Agency,
or his written designee, is hereby authorized to enter into an agreement with the
Trustee to provide such services to the Agency.
Section 6. The Purchase Contract by and between the Agency and the Underwriter
on file with the Secretary offering to purchase the Bonds to bear interest as set
forth in the Indenture is hereby approved and the Executive Director or Finance
Director is authorized to execute and deliver the Purchase Contract in said form
with such changes thereon as the officers executing the same may approve, such
approval to be conclusively evidenced by the execution and delivery thereof.
Section 7. The Chair or Executive Director or Finance Director is authorized to
execute a final Official Statement in substantially the form of the preliminary
Official Statement, and Continuing Disclosure Agreement relating thereto, which
have been presented at this meeting and are hereby approved, with such additions
Q,11015610-0122
1158732.02 a03/09/11 y 0122
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Housing Bonds
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 3
thereto and changes therein as are recommended or approved by Bond Counsel to
the Agency and the officer executing the same, with such approval to be
conclusively evidenced by the execution and delivery of such documents. The
Underwriter is hereby authorized to distribute the Preliminary Official Statement to
prospective purchasers of the Bonds and to provide to the purchasers of the Bonds
from the Underwriter copies of the final Official Statement. The Executive Director
or Finance Director is hereby authorized to sign a certificate pursuant to Rule 15c2-
12 promulgated under the Securities Exchange Act of 1934 pertaining to the
Preliminary Official Statement.
Section 8. Each and every officer of the Agency is authorized to perform his or her
services on behalf of the Agency. The Executive Director or Finance Director, or his
written designee, is authorized to incur such costs and to contract for all services
necessary to effect the issuance of the Bonds. Such services shall include, but not
be limited to, printing the Bonds, printing the Preliminary Official Statement and the
Official Statement, obtaining legal services, fiscal, agent services and any other
services deemed appropriate for the issuance of the Bonds including, without
limitation, the costs of Rating Agency Services (referred to in the Indenture as
"Costs of Issuance") and the payment for said Costs of Issuance shall be approved
by the Executive Director or Finance Director. The Executive Director or Finance
Director, or his written designee, is authorized to pay for such Costs of Issuance
with Bond proceeds established pursuant to the Indenture without further approval
of this Board of Directors.
Section 9. All actions heretofore taken by officers and agents of the Agency with
respect to the sale and .issuance of the Bonds are hereby approved, confirmed and
ratified, and the Chair and Secretary and the other officers of the Agency
responsible for the fiscal affairs of the Agency are hereby authorized and directed
to take any actions and execute and deliver any and all certificates, instruments,
agreements and documents as are necessary to accomplish the issuance, sale and
delivery of the Bonds in accordance with the provisions of this Resolution and the
fulfillment of the purposes of the Bonds as described in the Indenture as
determined by Bond Counsel. In the event that the Chair or Executive Director
is/are unavailable to sign any document authorized for execution herein, the
Finance Director shall sign such document. Any document authorized herein to be
signed by the Secretary may be signed by a duly appointed deputy secretary.
Section 10. The Agency hereby determines that interest payable on the Bonds will
be subject to federal income taxation, and that the provisions of Section 5900 et
seq. of the California Government Code (the "Taxable Bond Act") apply to the
Bonds. The Agency may take any action and exercise any power permitted to be
124/015610-0122
1158732 02 03/09/11 0 1 7
t
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Housing Bonds
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 4
taken by it under the Taxable Bond Act in connection with the issuance and sale of
the Bonds as may be deemed advisable by the Executive Director.
PASSED, APPROVED and ADOPTED this 15th day of March, 2011, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(Agency Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
124/015610-0122 0 12 4
1158732,02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Housing Bonds
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 5
SECRETARY'S CERTIFICATE
RE: ADOPTION OF RESOLUTION
STATE OF CALIFORNIA 1
Iss.
COUNTY OF RIVERSIDE
I, 'Veronica Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said
Agency at a regular meeting of said Agency held on the 15th day of March, 2011 .
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica J. Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
STATE OF CALIFORNIA 1
Iss.
COUNTY OF RIVERSIDE
I, 'Veronica Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy
of Resolution No. RA of said Agency and that said Resolution was adopted at
the time and by the vote stated on the above certificate, and has not been
amended or repealed.
_N 01^5
124/015610-0122
1158732 02 a03/09/11
Resolution No. RDA 2011-
RDA Authorizing the Issuance of Taxable Tax
Allocation Housing Bonds
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 6
Dated: , 2011
Veronica J. Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
124/015610-0122 0 126
1158732 02 a03/09/11
RESOLUTION NO. RA 2011-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA
APPROVING ITS SECOND SUPPLEMENTAL LOAN
AGREEMENT, OFFICIAL STATEMENT, PURCHASE
CONTRACT, AUTHORIZING THE EXECUTIVE DIRECTOR
TO SET THE FINAL TERMS OF THE APPROVAL OF THE
AGENCY LOAN, APPROVING THE PAYMENT OF COSTS
OF ISSUING THE AGENCY LOAN AND MAKING CERTAIN
DETERMINATIONS RELATING THERETO
WHEREAS, the La Quinta Redevelopment Agency (the "Agency"), is a
redevelopment --agency duly created, established and authorized to transact
business and exercise its powers, all under and pursuant to the Community
Redevelopment Law, being Section 33000 and following of the Health and Safety
Code of the State of California, and the powers of the Agency include the power to
issue bonds for any of its corporate purposes; and
WHEREAS, redevelopment plans for certain redevelopment projects (the
"Projects"), have been adopted and approved and all requirements of law for, and
precedent to, the adoption and approval of said plan have been duly complied with;
and
WHEREAS, the Agency proposes to enter into a not to exceed Twenty Eight
Million Eight Hundred Fifty Thousand Dollars ($28,850,000) principal amount of its
2011 Loan (the "Agency Loan") to provide funds for expansion of certain housing
related redevelopment projects (the "Project") the repayment of which will be
secured by certain tax increment revenues from the Project Areas; and
WHEREAS, there has been presented at this meeting a form of Second
Supplemental Loan Agreement and other documents providing for the approval of
the Loan; and
WHEREAS, there has been presented to this meeting forms of the
Preliminary Official Statement relating to the La Quinta Financing Authority (the
"Authority") Local Agency Taxable Revenue Bonds, 2011 Series A (the "Authority
Bonds"); and
NOW, THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
Agency of the City of La Quinta, California, as follows:
SECTION 1. Approval of Agency Loan. The incurrence of not to exceed Twenty
Eight Million Eight Hundred Fifty Thousand Dollars ($28,850,000) principal amount
124/015610-0122 0 1 ^ 7
1152955 02 a03/09/11
Resolution No. RDA 2011-
Resolution of the RDA Approving its
Second Supplemental Loan Agreement
Adopted: March 15, 2011
Page 2
of the Agency Loan in order to provide funds to accomplish lawful housing related
redevelopment purposes is hereby authorized and approved.
SECTION 2. Appointment of Trustee. U.S. Bank, National Association, Los
Angeles, California as Trustee is hereby appointed as Trustee (the "Trustee")
pursuant to the Loan Documents, as defined below, to take any and all action
provided for therein to be taken by the Trustee.
SECTION 3. Official Statement. The form of the Preliminary Official Statement
relating to the Authority Bonds and presented at this meeting is hereby approved.
The preparation of a final Official Statement relating to the Authority Bonds is
hereby approved and the Executive Director or Assistant Executive Director or
Treasurer is hereby authorized and directed, for and in the name and on behalf of
the Agency, to execute and deliver the final official statement containing such
changes from the Preliminary Official Statement as may be approved by the
Executive Director or Assistant Executive Director or Treasurer and the distribution
of such preliminary and final official statement in connection with the sale of the
Bonds is hereby authorized. The Executive Director or Assistant Executive Director
or Treasurer is also authorized and directed to deem the Preliminary Official
Statement final within the meaning of Rule 15c2-12 of the Securities Exchange Act
of 1934 (the "Rule"), omitting only such information as is permitted under such
Rule, and to execute an appropriate certificate stating the Agency's determination
that the preliminary official statements have been deemed final within the meaning
of such Rule.
SECTION 4. Approval of Agency Loan and Loan Documents. The Agency hereby
authorizes and approves the Agency Loan to be made to the Agency by the
Authority from the proceeds of the Authority Bonds pursuant to the Loan
Agreement, dated as of February 3, 2004, by and between the Agency and the
Authority and the Second Supplemental Loan Agreement dated as of March 1,
2011, by and among the Agency, the Authority and the Trustee (the
"Supplemental Loan Agreement") (collectively, the "Loan Documents"). The Loan
shall be made pursuant to and in accordance with the terms of the Loan
Documents. The Agency hereby approves the Loan Documents and any
supplemental loan documents in substantially the forms on file with the Secretary
together with any additions thereto or changes therein (including but not limited to
the principal amount of the Loan) deemed necessary or advisable by the Executive
Director or Assistant Executive Director or Treasurer, whose execution thereof shall
be conclusive evidence of approval of any such additions and changes. The
Chairperson or Executive Director or Assistant Executive Director or Treasurer is
hereby authorized and directed to execute, and the Secretary is hereby authorized
and directed to attest and affix the seal of the Agency to the final form of the Loan
Documents and any supplemental loan documents or and in the name and on
124/015610-0122
1152955.02 03/09/11 01 2 �/
Resolution No. RDA 2011-
Resolution of the RDA Approving its
Second Supplemental Loan Agreement
Adopted: March 15, 2011
Page 3
behalf of the Agency. The proceeds of the Loan shall be applied by the Agency for
the purposes and in the amounts set forth in the Loan Documents. The Agency
hereby authorizes the delivery and performance of the Loan Documents.
SECTION 5. Requisitions. The Executive Director or Assistant Executive Director
or Treasurer, or his/her designee, is hereby authorized and directed to execute one
or more requisitions authorizing the Trustee to pay the costs of issuing the Agency
Loan from the proceeds of the Authority Bonds or Agency Loan and the moneys, if
any, deposited by the Agency with the Trustee for such purpose, all pursuant to
the Loan Documents.
SECTION 6. Pledge. Agency hereby specifically pledges, by way of and pursuant
to the issuance of Agency Loan and the Loan Documents, certain of the tax
increment of Project Nos. 1 and 2 to payment of the Authority Bonds as set forth
in the Loan Documents.
SECTION 7. Public Benefit Finding. Subsequent to a public hearing held pursuant
to Government Code Section 6586.5, the Agency hereby finds and determines the
financing of the Project with the proceeds of the Authority Bonds and Agency Loan
will provide significant public benefits in accordance with the criteria specified in
Government Code Sections 6586(a), (c), and M.
SECTION 8. Other Acts. The officers and staff of the Agency are hereby
authorized and directed, jointly and severally, to do any and all things (including,
but not limited to, obtaining a rating from a national rating agency with respect to
the bonds), or otherwise to effectuate the purposes of this Resolution, and any and
all such actions previously taken by such officers or staff members are hereby
ratified and confirmed.
SECTION 9. The Agency hereby determines that interest payable on the Bonds will
be subject to federal income taxation, and that the provisions of Section 5900 et
sec. of the California Government Code (the "Taxable Bond Act") apply to the
Bonds. 'The Agency may take any action and exercise any power permitted to be
taken by it under the Taxable Bond Act in connection with the issuance and sale of
the Bonds as may be deemed advisable by the Executive Director.
SECTION 10. Effective Date. This Resolution shall take effect upon adoption.
1?
124/015610-0122 L
1152955,02 a03/09/1I
Resolution No. RDA 2011-
Resolution of the RDA Approving its
Second Supplemental Loan Agreement
Adopted: March 15, 2011
Page 4
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held on this 15th day of March, 2011, by the following
vote to wit:.
AYES:
NOES:
ABSENT:
ABSTAIN:
TERRY HENDERSON, Chairperson
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, Agency Secretary
La Quinta Redevelopment Agency
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, General Counsel
City of La Quinta, California
124/015610-0122 /� 1310
O
1152955.02 a03/09/11 0
Resolution No. RDA 2011-
Resolution of the RDA Approving its
Second Supplemental Loan Agreement
Adopted: March 15, 2011
Page 5
SECRETARY'S CERTIFICATE
RE: ADOPTION OF RESOLUTION
STATE OF CALIFORNIA ►
►SS.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said
Agency at a regular meeting of said Agency held on the 15th day of March, 2011.
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica J. Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
STATE OF CALIFORNIA 1
►SS.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Redevelopment Agency,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy
of Resolution No. RA of said Agency and that said Resolution was adopted at
the time and by the vote stated on the above certificate, and has not been
amended or repealed.
Dated: , 2011
Veronica Montecino, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
124/015610-0122
1152955 02 a03/09/11 ., ,. 0131
JI