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CC Resolution 2011-019RESOLUTION NO. 2011 - 019 A RESOLUTION OF THE LA QUINTA CITY COUNCIL, APPROVING AN AGREEMENT AMONG THE LA QUINTA REDEVELOPMENT 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 Resolution No. 2011 -019 Canal Agreement between CVWD, City, RDA Adopted: March 15, 2011 Page 2 WHEREAS, the Agency, City, and CVWD have negotiated an agreement ( "Agreement ") that would provide for (i) CVWD to design the physical solution selected 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 City Council, 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 City Council 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. 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 Resolution No. 2011 -019 Canal Agreement between CVWD, City, RDA Adopted: March 15, 2011 Page 3 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 City Clerk, is hereby approved. The City Manager and City Attorney 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 City Council. SECTION 5. The City Manager is hereby authorized and directed to (i) sign such other and further documents that require the City Council'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 City Council held on this 15th day of March, 2011, by the following vote to wit: AYES: Council Members Evans, Franklin, Henderson, Mayor Adolph NOES: Council Member Sniff ABSENT: None ABSTAIN: None 0 DON ADOLPH, Ma )[Jr City of La Quinta VERONICAONTECINO, CIVIC, CITY CLERK City of La duinta, California (City Seal)-. Resolution No. 2011 -019 Canal Agreement between CVWD, City, RDA Adopted: March 15, 2011 Page 4 APPROVED AS TO FORM: -L- SINE JENS CITY ATTORNEY of La Quinta, ,f