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2019 10 09 HC HOUSING COMMISSION MINUTES Page 1 of 2 SEPTEMBER 11, 2019 REGULAR QUARTERLY MEETING HOUSING COMMISSION MINUTES WEDNESDAY, SEPTEMBER 11, 2019 A regular quarterly meeting of the La Quinta Housing Commission (Commission) was called to order at 4:00 p.m. by Vice-Chairperson McDonough. PRESENT: Commissioners: Davidson, Gaeta-Mejia, Pacheco, and Vice- Chairperson McDonough ABSENT: Commissioner Casto PLEDGE OF ALLEGIANCE Vice-Chairperson McDonough led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS Staff and Commissioners congratulated Commissioner Pacheco on her appointment to the Commission. Assistant to the City Manager Villalpando introduced City Manager McMillen, and Management Specialist Kinley with the City Manager’s Office. City Manager McMillen and Commissioner Pacheco provided an overview of their backgrounds, experience, and qualifications. 1. CITY BOARDS AND COMMISSIONS – ROLES AND RESPONSIBILITIES OF APPOINTED MEMBERS City Clerk Radeva provided the Commission with copies of the Commissions’ Handbook; and gave a presentation on the roles and responsibilities of members serving on City Boards and Commissions, and a brief overview of California state and La Quinta Municipal Code statutes governing public meetings (Government Code Section 54950 et seq. – Brown Act), disclosure of financial interests (Government Code Section 81000 et seq. – Political Reform Act), conflict of interest, City’s Rules of Procedure (Council Resolution No. 2015-023), decorum during meetings, required trainings, and the California Public Records Act (Government Code Section 6250 et seq.). The Commission asked City Clerk Radeva to briefly introduce herself; City Clerk Radeva shared a brief description of her education, background, and history at the City. CONSENT CALENDAR 1. APPROVE HOUSING COMMISSION MINUTES DATED JUNE 12, 2019 Motion – A motion was made and seconded by Commissioners Davidson/Gaeta-Mejia to approve the Consent Calendar as submitted. Motion passed: ayes 4, noes 0, absent 1 (Casto). CONSENT CALENDAR ITEM NO. 1 HOUSING COMMISSION MINUTES Page 2 of 2 SEPTEMBER 11, 2019 REGULAR QUARTERLY MEETING BUSINESS SESSION 1. APPOINT HOUSING COMMISSION CHAIRPERSON AND VICE-CHAIRPERSON FOR FISCAL YEAR 2019/20 Commissioner Gaeta-Mejia and McDonough expressed their willingness to serve on the Commission as Chairperson and Vice-Chairperson for fiscal year 2019/20, respectively. Motion – A motion was made and seconded by Commissioners Davidson/McDonough to appoint Commissioner Gaeta-Mejia as Chairperson for fiscal year 2019/20. Motion passed: ayes 4, noes 0, absent 1 (Casto). Motion – A motion was made and seconded by Commissioners Gaeta-Mejia/Davidson to appoint Commissioner McDonough as Vice Chairperson for fiscal year 2019/20. Motion passed: ayes 4, noes 0, absent 1 (Castro). STUDY SESSION 1. REVIEW 2019/20 HOUSING COMMISSION ACTIVITY Assistant to the City Manager Villalpando announced the dates for the Commission’s regular quarterly meetings for fiscal year 2019/20 and mentioned a possible special meeting may be held in early October to discuss the disposition of housing property. DEPARTMENTAL REPORTS – None REPORTS AND INFORMATIONAL ITEMS 1. 2019/20 SPECIAL EVENTS LINEUP Staff provided the Commission with a handout containing information and dates on the City’s upcoming community events for fiscal year 2019/20. COMMISSIONERS’ ITEMS The Commission asked if name badges could be provided to all Commissioners for use during City events. Staff said that name badges would be provided to the Commission. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Davidson/Gaeta-Mejia to adjourn this meeting at 4:52 p.m. Motion passed: ayes 4, noes 0, absent 1 (Casto). Respectfully submitted, Reyna Camarena, Management Assistant City of La Quinta, California City of La Quinta HOUSING COMMISSION MEETING: October 9, 2019 STAFF REPORT AGENDA TITLE: REVIEW AND APPROVE CASH MANAGEMENT POLICY RECOMMENDATION Review and approve a Cash Management Policy. EXECUTIVE SUMMARY • The Housing Commission is asked to review, discuss, and approve the Cash Management Policy (Policy). • The Policy is new and would provide guidelines for standard citywide practices for receiving, processing, and handing cash. • Staff and City Attorney have reviewed the proposed Policy. The Policy conforms to current laws and governmental accounting best practices. • Subsequent to Commission approvals the Policy will be presented to City Council for adoption. FISCAL IMPACT The adoption of this Policy does not have a monetary impact. However, the approval of this policy will provide standard guidelines for handling cash. BACKGROUND/ANALYSIS As an advisor to the Finance department, the F inancial Advisory Commission was also asked to review, discuss, and approve the recommended Policy. The Policy applies to all City Funds, including those of the Housing Authority. The City does not currently have a policy governing cash management but follows the procedures outlined in the Policy. Adoption of a formal Policy was recommended by two external agencies – the City’s primary insurance carrier, California Joint Power Insurance Authority (CJPIA) and the State of California Department of Transportation (CalTrans). The Policy establishes Citywide standard guidelines for the management of cash and cash equivalent transactions such as credit cards and checks. Furthermore, the Policy references additional reporting requirements for Federally funded procurements as governed under the Code of Federal Regulations (CFR) Title 2 BUSINESS SESSION ITEM NO. 1 Grant and Agreements, Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, commonly known as Uniform Grant Guidance (UGG). To ensure compliance with current laws and regulatory requirements, the Policy was reviewed by staff and City Attorney. ALTERNATIVES: The purpose of this item is to receive input from the Commission. The Commission may either approve as presented or recommend further changes, which adhere to external regulatory requirements. Prepared by: Claudia Martinez, Senior Accountant Approved by: Karla Romero, Finance Director Attachment: 1. Cash Management Policy - DRAFT 1 of 8 CASH MANAGEMENT POLICY 1. PURPOSE The purpose of this Cash Management Policy is to provide guidelines for standard citywide cash handling practices in order to ensure proper and consistent procedures for receiving, processing, and handling cash. 2. SCOPE This policy applies to all City Funds, employees, departments, volunteers, vendors, or other persons whose assigned duties involve handling City cash or funds must comply with the policies and procedures contained herein. Departments are responsible for ensuring that every employee, volunteer, vendor, or other person whose assigned duties involve handling City cash or funds adheres to this Policy. 3. GENERAL POLICY It is City of La Quinta’s (City) policy to protect the City’s assets, including cash, from theft, loss and misuse; and to ensure that the City receives, accurately records, and promptly deposits all cash and cash equivalents to which the City is entitled. Cash: may be comprised of, but not limited to coin, currency, checks, money orders, debit and credit card transactions, and electronic fund transfers. The City currently has designated revenue collection sites including: a. Finance Department b. The Hub c. Wellness Center d. Museum & Library e. SilverRock Golf Course f. Special Events - On an as needed basis, there may be situations requiring establishment of temporary receipting points, which collect cash on an ad-hoc basis (e.g. community festivals, golf tours). 4. MANAGEMENT OF CASH All City bank accounts shall be carried in the name of the City with additional secondary designations within the bank account name as to the purpose of the bank account, where appropriate (e.g. SilverRock Golf Resort, La Quinta Housing Authority). 5. CASH RECEIPTING Cash receipting, for the purpose of this policy, encompasses the following: a. Accounting for cash as it is received b. Pre-numbered consecutive receipts to be provided for cash received c. Adequate separation of duties (collection, depositing, and reconciling) d. Refunds, voids, and cash over/short transactions 2 of 8 6. SEGREGATION OF DUTIES Collection of cash, deposit preparation, and reconciliation duties shall be performed by separate individuals, but at a minimum, reconciliation should be done by a separate person. The employee who physically collects the cash cannot be the same individual performing the reconciliation duties. In the event segregation of duties is not possible, the department shall work with the Finance Department to establish agreed upon internal control procedures. 7. FINANCE DEPARTMENT RESPONSIBILITY It is the responsibility of the Finance Department to track and ensure the timely deposit of City funds collected or generated at authorized locations and account for all funds submitted by all revenue collection sites. The Finance Department will assist and provide materials needed to departments and cashiers as follows: a. Provide cash handling training to City departments and employees. b. Perform cash deposit reconciliations between bank records and cash receipt vouchers that are input into the financial system. Any discrepancies resulting from errors by the bank or the City will be resolved by the Finance Department. c. Provide revenue collection sites with a change fund to allow cashiers to give change to customers. The Finance Department is responsible for establishing citywide practices, providing forms, and other actions necessary to implement the Cash Management Policy. 8. DEPARTMENT RESPONSIBILITY Cash handling involves special control measures that must be monitored continually by supervisory personnel within each department that maintains cash in order to detect any weaknesses. Department heads are responsible for conducting periodic reviews of their department cash handling activities to ensure these procedures are understood and followed consistently by staff. The responsibilities of City employees and their supervisors who are involved in the handling of cash on behalf of the City include: a. Cash receipting b. Distribution of petty cash c. Reconciling of cash receipts d. Depositing of cash e. Safeguarding of cash f. Reporting of cash transactions and variances 9. SAFEGUARDING OF CASH The City shall maintain, as deemed appropriate, physical security systems (i.e. safes, alarms, panic buttons, motion detectors, security cameras, etc.) to ensure the safety of personnel and funds in areas where cash is collected, reconciled, and stored. In addition, access to counter, cash handling, and storage areas will be restricted to authorized personnel. The safeguarding of cash relates to the processing, storing, and transporting of cash and to the safekeeping of keys and safe combinations. Each location maintains at least one safe 3 of 8 that is used to hold cash, change boxes, point of sale cash drawers, bank deposits, and transaction records/receipts. Safes have adequate locking mechanisms and keys to change boxes are kept in locked cabinets. To ensure internal controls, access is limited to select personnel and combinations are updated regularly and never shared. The employee is responsible for verifying the cash drawer contains the designated starting balance prior to processing any payments. Verification of cash in drawer will take place in the area designated for balancing drawers. The employee is responsible for the contents, security, and keys for the cash drawer at all times. The employee must lock all cash and cash equivalents in a drawer or other secure location whenever leaving the workstation, including for break and lunch periods. The employee shall maintain adequate change in their drawers. Change can be requested through a supervisor or directly from the Finance Department. Cash funds must not be left unattended. Cash shall always be stored in a locked, secured location until it is deposited. Access to the secured area should be limited to authorized individuals only. 10. DEPOSITING OF FUNDS All cash collections are to be deposited. Collections may not be reserved for petty cash or used to pay department expenses. Deposits of cash on hand shall be made no less than weekly. In order to maintain an efficient cashiering service at the cash collection sites where the City accepts payments, the City’s policy regarding reasonable amounts and denominations of coinage the City will accept as a form of payment is: a. City personnel will not accept over $10.00 in unrolled coins or $20.00 in rolled coins in sleeves per payment. b. Customers will indicate their name and phone number on each roll in order to provide contact information in the event questions arise on the coin roll. Regular reconciliations are to be prepared at the departmental level to confirm that all receipts have been recorded in the point of sale system. A designated employee at the departmental level prepares deposits and a separate employee documents those reconciliations. The supervisor shall keep a log on overages/shortages by cashier. This log shall be reviewed to identify areas of improvement in cash handling procedures. On any overage/shortage the cashier shall prepare a written explanation as to what occurred and attach it to the reconciliation. The Finance Department shall ensure all transactions are properly recorded in the general ledger. 11. PROCESSING INCOMING MAIL All correspondence shall be forwarded to the appropriate department to open incoming checks, sort, and enter them into the check log before forwarding to the appropriate staff member for processing. A reconciliation of the check log should be performed on a regular basis to ensure that all checks are being processed in the appropriate point of sale system, and accounted for in deposits. 4 of 8 12. REPORTABLE LOSSES Any instance of known or suspected loss or misappropriation of cash or checks shall be reported to the Finance Director, Department Director, and Human Resources immediately. In the event of a robbery or burglary, police authorities should be notified immediately along with Human Resources and the City Manager. 13. RETURNED CHECKS Upon receipt of a non-sufficient funds (NSF) check, the Finance Department will provide a copy of the returned check to the appropriate department and request the original transaction information to adjust the appropriate cash and revenue accounts to which the monies were originally recorded. If the check was applied to an accounts receivable invoice, a new invoice will be generated showing the amount unpaid. The Finance Department will promptly notify the payer via a letter after the NSF check is received. The payer has ten (10) business days after receipt of the letter to respond to the City. Payer must renegotiate the payment with cash, cashier’s check, money order, or credit/debit card. All checks returned by the bank for non-sufficient funds or other reasons may be subject to a returned check fee as adopted in the Citywide fee schedule. 14. REFUNDS, VOIDS, AND CASH DISCREPANCIES All refunds, voids, and cash discrepancies transactions are to be reviewed and authorized by the employee’s supervisor - cash discrepancies occur where the physical cash holdings differ to that specified by the cash receipting system. Refunds are typically not permitted to be processed at locations which take payments and handle cash. If a customer requires a refund, a request shall be submitted through the Finance Department. All refunds and voided transactions shall have the following supporting documentation: a. Transaction date b. Customer name, address, phone number, and signature c. Original customer receipt d. Reason for the refund or voided transaction e. Amount and form of payment f. Signature of cashier requesting the refund or void g. Signature of supervisor approving the transaction In the case of an overage or shortage, every effort should be made to locate amounts causing the out of balance condition regardless of the amount. The employee and supervisor must sign an over/short report with an indication of the reason, if known, for the difference. 15. UNCLAIMED PROPERTY Finance may void and reissue old/stale dated checks in an effort to notify/pay vendors for City checks that remain outstanding prior to one year. Unclaimed property is considered unclaimed after a period of time that a check remains outstanding. The City shall follow Escheatment and Unclaimed Property Procedures established in the Accounts Receivables Write-Offs and Unclaimed Property Policy. 16. DISBURSEMENT OF CITY FUNDS Electronic distribution, such as wire transfers, of funds will be initiated by the Finance Department. Authority to transfer monies shall be properly documented and verified by the 5 of 8 Finance Department. All wire transfer requests must provide the following: a. Wiring instructions from beneficiary b. Wire transfer of funds document(s) properly completed and signed by the employee requesting the wire transfer and the Department Director or designee. c. Backup documentation supporting the wire (invoice, purchase order number, memo, City Council approval if applicable, etc.) d. All wire transfers will require a dual-approval process whereby initiation and approval of the wire will be completed by separate members of the finance staff. 17. PETTY CASH FUNDS The Purchasing and Contracting Policy of the City will establish a maximum size for petty cash payments from the petty cash fund. Petty cash should be used as a convenient method to pay small claims and is not intended for larger or frequent payments, which should be paid through Accounts Payable. The petty cash fund must be kept in a safe or locked cabinet under the control of the responsible person within the department. The petty cash fund must at all times contain the authorized amount in cash and/or paid vouchers. The fund may not be used for personal loans, cashing checks, or for salaries. To replenish the petty cash fund, a Petty Cash Reimbursement Form must be completed. The form would show persons reimbursed, the amounts, and account numbers to be charged and signature of the cash disbursement. All receipts must be attached with approvals from the signing authority for the account charged. Funds received from any source must not be added to the petty cash fund, funds must be processed per the procedures for the revenue collection site. 18. RECONCILIATION Each business day, designated employee(s) shall ensure payments processed and payments received are reconciled. Management shall review and approve the overall daily cash receipt reconciliation to ensure all cash receipts are accounted for and match to the daily cash deposit, prior to submission to the Finance Department. 19. AUDITS The Finance Department conducts random audits at least twice a year at every location which handles payments. The audits include verifying cash tills, change boxes, and petty cash balances to the amounts allocated and recorded by the Finance Department. 20. CASH HANDLING POLICY REVIEW The Finance Director shall review this Policy annually to ensure careful and responsible management over City resources and if applicable recommend any changes to the City Manager and City Council. 21. FEDERALLY FUNDED PROCUREMENTS The following section outlines the allowable costs for grants, contracts, and sub-awards at the City of La Quinta. The policy is justified by the requirement of the Code of Federal Regulations (CFR) Title 2 Grants and Agreements, Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, commonly known as Uniform Grant Guidance (UGG). It provides the basic criteria to determine direct 6 of 8 allowable and indirect allocable costs on federally funded programs regardless of the funding agency sponsoring the program. The City’s shall adhere to the UGG Administrative Requirements as updated. 200.305 Payment Generally, the City receives payments of federal award funds on a reimbursement basis. In some cases, the City may receive an advance of federal grant funds. a. Reimbursements • The City will request reimbursement for actual expenditures incurred under federal grants at least quarterly, or more often as deemed appropriate. • Reimbursement requests will be submitted with appropriate documentation and signed by the City’s designated representative. All reimbursements are based on actual disbursements, not on obligations. • The City will maintain supporting documentation of federal expenditures (invoices, payroll records, etc.) and will make such documentation available to awarding agencies upon request. b. Advances • When the City receives advance payments of federal grant funds, it must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement of those funds on allowable costs of the applicable federal program. (2 CFR 200.305) • To the extent available, the City will disburse funds available from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments. (2 CFR 200.305) • The City will maintain advance payments of federal awards in insured, interest-bearing accounts whenever not precluded by the Federal award grant guidance or whenever the exceptions per 2 CFR 200.305(8) do not apply. Interest amounts up to $500 per year may be retained by the City for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services Payment Management System (PMS) through an electronic medium using either Automated Clearing House (ACH) network or a Fedwire Funds Service payment. [2 CFR 200.305(9)] Allowable Costs 2 CFR, part 200, subpart E, Cost Principles identifies direct and indirect costs that can be charged to federal awards; it also identifies those costs that cannot be charged to grant agreements and that are considered unallowable expenses. The City adopts the five tests provided by this regulation to determine the allowability of costs applied to federally funded services: a. Reasonability: For a cost to be considered reasonable, it must be necessary for fulfillment of the grant objective; acquired by means consistent with federal and state laws and regulations, and consistent with City policies and practices. b. Allocability: A cost is allocable to a program if the goods/services involved are charged in accordance with the relative benefits received by that program. To be considered allocable, a cost must be incurred solely to advance the work under the 7 of 8 sponsored program or benefit both the sponsored program and other programs of the City in proportions that can be approximated through use of the City cost allocation methods not to exceed the limit imposed by the grant agreements. c. Consistency: Similar costs are treated as direct or Facilities and Administration (F & A) costs when incurred in like circumstances. Costs that are generally charged as direct cost to a sponsored program should not be included as F&A costs on other projects when incurred for the same purposes. Where the City treats a particular type of cost as a direct cost of sponsored programs, all costs incurred for the same purpose in like circumstances shall be treated as direct costs of all other activities of the City. d. Limitation: Cost must conform to any limitations or exclusions in the sponsored agreement. e. Documentation: Cost must be adequately documented. Expenditures must be aligned with approved budgeted items. Any deviation from the approved award budget will require prior approval from the awarding agency. Allowability of costs will be determined prior to obligating and spending federal funds on a proposed good or service. State and City rules or policy must also be considered. Whichever allowability requirements are stricter will govern whether a cost is allowable. a. Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards per 2 CFR 200.403: • Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. • Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. • Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the City. • Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. • Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. Also, reference § 200.306, Cost sharing or matching, paragraph (b). • Be adequately documented. Also, reference §§ 200.300, Statutory and national policy requirements, through 200.309, Period of performance, of 200 CFR Part 200. Direct Costs Direct costs are those costs that can be identified specifically with a particular award, costs that can be directly assigned to an activity with a high degree of accuracy will be directly imputed to that activity. Identification with the grant rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect F&A costs of grant agreements. Examples of some of the costs charged directly include: a. Personnel salaries/fringe benefits b. Capital expenditures 8 of 8 c. Software d. Consultants e. Equipment f. Materials and supplies Facilities and Administrative Costs (Indirect/Overhead Costs) Costs incurred for common or joint objectives that cannot be identified specifically with a sponsored program are treated as indirect costs. Examples of indirect costs include: a. Utilities b. Maintenance and operation c. Building and equipment expenses d. Administrative costs Most grant agreements include a percentage of the direct cost to cover these charges known as the Facilities and Administrative Cost Rate (F&A), refer to individual grant agreement guideline for indirect cost rate. Federal regulations limit instances where administrative costs can be charged directly to grants and contracts. An exception may be made if there is extensive use of such expenses, the expenses have been properly justified/documented in the grant/contract proposal, and they have been approved as a direct cost by the appropriate federal agency. Examples below list the types of expenses that are generally not allowable as a direct cost: a. Administrative and clerical salaries and wages b. Printing and copying costs c. Office supplies d. Postage and mail e. Telephone and internet 22. POLICY REVIEW The Finance Director and administrators of federal funds shall review this Policy annually and recommend any changes to the City Manager and City Council. City of La Quinta HOUSING COMMISSION MEETING: October 9, 2019 STAFF REPORT AGENDA TITLE: RECOMMEND APPROVAL OF LOT LINE ADJUSTMENT, ACCESS EASEMENT, AND SALE OF PORTIONS OF REAL PROPERTY AT 46150- 46176 DUNE PALMS ROAD (APNs 600-030-022 AND -023) FROM THE LA QUINTA HOUSING AUTHORITY TO THE CITY OF LA QUINTA FOR FUTURE PARK AND DRAINAGE IMPROVEMENTS RECOMMENDATION Recommend approval of lot line adjustment, access easement, and sale of portions of real property at 46150-46176 Dune Palms Road (APNs 600-030-022 and -023) from the La Quinta Housing Authority to the City of La Quinta for $1,061,456 for future park and drainage improvements; EXECUTIVE SUMMARY • The City of LA Quinta (City) seeks to acquire property from the La Quinta Housing Authority (HA) for the La Quinta X Park and Citywide Drainage Enhancement Projects (Projects). • A lot line adjustment is proposed to accommodate the required space for each of the Projects. • An access easement is proposed to provide public ingress and egress to the Projects and to the future affordable housing site. • After review and receiving comment from the Housing Commission, the Housing Authority will review the sale of the portion of the property needed for the Projects, to implement the sale of the same and to transfer funds to the Housing Authority. • The funds the HA receives must be used for future affordable housing projects or programs. FISCAL IMPACT The HA would receive $1,061,456, which would be deposited into the HA Sale of Other Assets (account no. 241-9101-4500) and used to fund future BUSINESS SESSION ITEM NO. 2 affordable housing projects. Capital Improvement Program funds will be used for this acquisition. The access easement is proposed to have no associated cost. The purchase breakdown is as follows: Land Acquisition Purchase Price Parcel A – La Quinta X Park $633,144 Parcel B - Citywide Drainage Enhancement Project $428,312 TOTAL $1,061,456 BACKGROUND/ANALYSIS The La Quinta X Park project will construct an extreme sports facility consisting of 31,000 sq. ft. of skate area, a pro-shop with restrooms and shade structure, bowls and features for beginners, advanced, and professional users, and includes a pump track feature surrounding two of the proposed retention basins. The Citywide Drainage Enhancements project will construct three retention basins to accommodate the on-site drainage for the X Park and the remaining Housing Authority property as well as the off-site drainage along Westward Ho Drive. The proposed lot line adjustment will provide the necessary parcel sizes for the Projects. Parcel A (APN 600-030-022) encompasses 79,143 sq. ft. for the future La Quinta X Park. Parcel B (APN 600-030-023) encompasses 53,539 sq. ft. for the Citywide Drainage Enhancements Project. Parcel C (APN 600-030- 024) will remain Housing Authority owned and encompasses 121,551 sq. ft. A no cost public access easement from Parcel C is also necessary to provide driveway ingress and egress to the Projects and to the future affordable housing site. The former La Quinta Redevelopment Agency (RDA) acquired the land in 2007 to eliminate blight and develop an affordable housing project. The affordable housing project was stalled due to the elimination of the RDA, and the Authority has held onto the property pending future development. The City is offering the HA the fair market value of $1,061,456 (Attachment 1) for the properties. The HA intends to develop the remainder of the property with an affordable housing project. The sale proceeds must be used for affordable housing; State law allows for the sale of affordable housing property provided that the proceeds are used for affordable housing. ALTERNATIVE The City Council could determine to not approve the transaction, which would result in the Projects not being constructed. Prepared by: Julie Mignogna, Management Analyst Approved by: Bryan McKinney, City Engineer Attachments: 1. Purchase and Sale Agreement 2. Plat Map 882/015610-0046 7101504.1 a10/03/19 -1- AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of ______________, 2019 (“Effective Date”) by and between the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Seller”), and the CITY OF LA QUINTA, a California municipal corporation and charter city (“Buyer”). R E C I T A L S: A. Seller is the owner of that certain unimproved real property located in the City of La Quinta, County of Riverside, State of California, more particularly described as Parcel A and Parcel B in Exhibit “A”, and depicted as Parcel A and Parcel B in Exhibit “B” (the “Property”), each of which exhibits are incorporated herein by this reference. B. Buyer desires to purchase the Property from Seller and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein. A G R E E M E N T: NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants herein contained, the parties hereto agree as follows: 1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby agrees to purchase from Seller the Property. 2. PURCHASE PRICE. 2.1 Amount. The purchase price which Seller agrees to accept, and Buyer agrees to pay for the Property is the sum of ONE MILLION SIXTY-ONE THOUSAND FOUR HUNDRED FIFTY-SIX DOLLARS ($1,061,456) (“Purchase Price”). 2.2 Payment of Total Purchase Price. The Buyer shall deposit with the Escrow Holder the Purchase Price, plus Buyer’s closing costs, subject to adjustment for prorations and other charges, in good funds, prior to the “Close of Escrow” (as defined in Section 6.1 below). 3. ESCROW. 3.1 Opening of Escrow. Closing of the sale of the Property shall take place through an escrow (“Escrow”) to be established within three (3) business days after the execution of this Agreement by the parties hereto, with Four Seasons Escrow (“Escrow Holder”) at its office located at 51350 Desert Club Drive, La Quinta 92253. The opening of the Escrow (the “Opening of Escrow”) shall be deemed to be the date that a fully executed copy of this Agreement is delivered 882/015610-0046 7101504.1 a10/03/19 -2- to the Escrow Holder. Escrow Holder is instructed to notify Buyer and Seller in writing of the date of the Opening of Escrow. 3.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow Holder so requires, Buyer and Seller agree to execute the standard preprinted form of escrow instructions that Escrow Holder customarily requires in real property escrows administered by it. In the event of any conflict or inconsistency between Escrow Holder’s standard instructions and the provisions of this Agreement, the provisions of this Agreement shall supersede and be controlling. 4. TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by First American Title Company (“Title Company”) describing the state of title of the Property together with copies of all underlying documents (the “Preliminary Title Report”). Buyer may, at its sole cost and expense, obtain a current survey of the Property (a “Survey”). Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary encumbrances against the Property excluding non-delinquent real property taxes. Buyer shall notify Seller in writing of any objections Buyer may have to title exceptions contained in the Preliminary Title Report or matters shown on the Survey (if Buyer has obtained) no later than the date which is twenty-one (21) days after the later of (i) its receipt of the Preliminary Title Report or (ii) its receipt of the S urvey (“Buyer’s Objection Notice”). Buyer’s approval or disapproval of the matters set forth in the Preliminary Title Report (and the Survey, if applicable) may be granted or withheld in Buyer’s sole and absolute discretion. Buyer’s failure to provide Seller with a Buyer’s Objection Notice within said period shall constitute Buyer’s approval of all exceptions to title shown on the Preliminary Title Report and all matters shown on the Survey (if Buyer has obtained). Seller shall have a period of ten (10) days after receipt of Buyer’s Objection Notice in which to deliver written notice to Buyer (“Seller’s Notice”) of Seller’s election to either (i) agree to remove the objectionable items on the Preliminary Title Report or Survey prior to the Close of Escrow, or (ii) decline to remove any such title exceptions or Survey matters and terminate Escrow and the obligations of Buyer and Seller to purchase and sell the Property under this Agreement, in which event the provisions of Section 10.3 below shall apply. Seller’s failure to provide Buyer with Seller’s Notice within said period shall constitute Seller’s election to remove the objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its election to terminate rather than remove the objectionable items on the Preliminary Title Report or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days after Buyer’s receipt of Seller’s Notice, to agree to accept the Property subject to the objectionable items, in which event Seller ’s election to terminate shall be of no effect, and Buyer shall take title at the Close of Escrow subject to such objectionable items without any adjustment to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title Report, other than those which Seller may agree to remove pursuant to this Section 4, shall be deemed to have been approved by Buyer unless Seller is notified otherwise in writing. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, including any survey exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement. The process set forth above for Buyer’s review and Seller’s response shall apply to any review and response with respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall be extended for such period as is necessary to allow for that review and response process to be completed. 882/015610-0046 7101504.1 a10/03/19 -3- 5. RIGHT OF ENTRY. Beginning on the Effective Date up to and including the Closing Date, Seller grants Buyer, its agents, contractors, employees, and representatives, the right to enter into and upon the Property at reasonable times for the purposes related to Buyer’s inspection and proposed acquisition of the Property. Buyer shall not disturb the physical condition of the Property, or do any intrusive testing of the Property without the prior written consent of Seller, which consent shall not be unreasonably withheld or delayed. Any costs, expenses, or charges incurred or related to Buyer’s activities under this right of entry shall be at the sole cost and expense of Buyer and at no cost and expense to Seller. Buyer shall, at its own cost and expense entirely, repair any damage to the Property resulting from any such entry and shall restore the Property to its condition prior to such entry. Buyer agrees to indemnify, defend and hold Seller and the Property harmless from any and all claims, liabilities, liens, actions, judgments, costs, expense, or charges (including without limitation attorneys’ fees and costs) arising from or connected or related in any way to the right of entry granted under this Agreement. 6. CLOSE OF ESCROW. 6.1 Close of Escrow; Closing Date. Provided that all of the conditions of this Agreement precedent to the “Close of Escrow” (as hereinafter defined) as set forth in Section 10 below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date, the Closing of this transaction for the sale and purchase of the Property shall take place on or before October 31, 2019 (“Outside Closing Date”). The terms “Close of Escrow”, “Closing Date” and the “Closing” are used herein to mean the time Seller’s grant deed conveying fee title to the Property to Buyer is recorded in the Official Records of the Office of the County Recorder of Riverside (“Official Records”). If Escrow is not in a condition to close by the Outside Closing Date, either party not then in default hereunder may, upon five (5) days advance written notice to the other party and Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall release either party then in default from liability for such default. If neither party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible. 6.2 Recordation; Release of Funds and Documents. 6.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official Records, the following documents in the order listed: (i) the grant deed (in the form attached hereto as Exhibit “C”) transferring title to the Property to Buyer (“Grant Deed”); and (ii) such other and further documents as may be directed jointly by Buyer and Seller. 6.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price to Seller, less any amount to Closing costs, and (ii) conformed copies of all recorded documents to both Buyer and Seller. 7. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER. 7.1 Buyer’s Obligations. Buyer agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following: (a) the Purchase Price; and 882/015610-0046 7101504.1 a10/03/19 -4- (b) any and all additional funds, instruments or other documents required from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in order for the Escrow Holder to comply with the terms of this Agreement and consummate the transaction. 7.2 Seller’s Obligations. Seller agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder each of the following: (a) the executed and acknowledged Grant Deed, subject only to the Permitted Exceptions (defined hereafter); (b) all other funds, items, and instruments required from Seller (executed and acknowledged where appropriate) as may be reasonably necessary in order for the Escrow Holder to comply with the provisions of this Agreement and consummate the transaction. 8. TITLE INSURANCE POLICY. 8.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a CLTA owner’s standard coverage policy of title insurance (“Title Policy”), in favor of Buyer, as insured, for the Property, with liability in the amount of the Purchase Price, subject only to the following (the “Permitted Exceptions”): (a) covenants, conditions, restrictions and reservations of record that do not interfere with the Buyer’s proposed use of the Property, as determined in the sole and absolute discretion of Buyer; (b) easements or rights-of-way over the Property for public or quasi-public utility or public street purposes; (c) title exceptions approved or deemed approved by Buyer pursuant to Section 4 above; (d) any other exceptions approved by Buyer; and (e) the standard printed conditions and exceptions contained in the CLTA standard owner’s policy of title insurance regularly issued by the Title Company. 8.2 Payment for Title Policy. Seller shall be responsible for the charges for the Title Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional amount charged by Title Company for any additional coverage or endorsements it requests. In connection therewith, Buyer may, at its election, request an ALTA extended policy of title insurance and Buyer shall pay for the incremental cost of the extended coverage above and beyond the standard coverage. Buyer shall pay for the Survey, if obtained. 882/015610-0046 7101504.1 a10/03/19 -5- 9. INTENTIONALLY OMITTED. 10. CONDITIONS PRECEDENT TO CLOSING. 10.1 Conditions Precedent to Buyer’s Obligations. The obligations of Buyer under this Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or signed written waiver by Buyer of each and all of the following conditions precedent (collectively, “Buyer’s Conditions to Closing”): (a) on the Closing Date, the Title Company shall be irrevocably committed to issue the Title Policy pursuant to Section 8.1 above insuring fee title to the Property as being vested in Buyer, subject only to the Permitted Exceptions; (b) Escrow Holder holds all instruments and funds required for the Closing and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this Agreement; (c) except as otherwise permitted by this Agreement, all representations and warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled by the Closing Date; and (d) Seller is not in material default of any term or condition of this Agreement. In the event that any of Buyer’s Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Buyer prior to the expiration of the applicable period for satisfaction or waiver, Buyer may terminate this Agreement. 10.2 Conditions Precedent to Seller’s Obligations. The obligations of Seller under this Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all of the following conditions precedent (“Seller’s Conditions to Closing”): (a) Escrow Holder holds the Purchase Price and all other instruments and funds required for the Closing and will deliver to Seller the instruments and funds, including but not limited to the Purchase Price (less any offsets against Seller specifically provided for hereunder) accruing to Seller pursuant to this Agreement; (b) except as otherwise permitted by this Agreement, all representations and warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled by the Closing Date; and (c) Buyer is not in material default of any term or condition of this Agreement. In the event that any of Seller’s Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Seller prior to the expiration of the applicable period for satisfaction or waiver, Seller may terminate this Agreement. 882/015610-0046 7101504.1 a10/03/19 -6- 11. POSSESSION. Possession of the Property, free from all tenancies, parties in possession and occupants, shall be delivered by Seller to Buyer on the Closing Date, subject only to the Permitted Exceptions. 12. ALLOCATION OF COSTS. 12.1 Buyer’s Costs. Buyer shall pay: (i) one-half (1/2) of any escrow fees or similar charges of Escrow Holder, (ii) the full premium cost for any endorsements to the Title Policy, (iii) the premium for any ALTA coverage over and above the cost of the CLTA (or standard ALTA) Owner’s Title Policy, and (iv) the costs of any Survey, inspection or report requested by Buyer. 12.2 Seller’s Costs. Seller shall pay: (i) the premium cost of the Title Policy (CLTA (or standard ALTA) Owner’s only), and (ii) one-half (1/2) of any escrow fees or similar charges of Escrow Holder. 12.3 Miscellaneous Costs. Except to the extent otherwise specifically provided herein, all other expenses incurred by Seller and Buyer with respect to the negotiation, documentation and closing of this transaction, including, without limitation, attorneys’ fees, shall be borne and paid by the party incurring same. 13. COVENANTS OF SELLER. Seller agrees that during the period between the Effective Date of this Agreement and the Closing Date: (a) Seller shall maintain the Property in not less than the state of repair as that existing on the Effective Date (excepting ordinary wear and tear); (b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or otherwise transfer (on or off record) the Property or any interest therein; (c) Prior to Closing, Seller shall maintain Seller’s existing insurance on the Property; and (d) Prior to the Closing, Seller shall not alter the physical condition of the Property. 14. MISCELLANEOUS. 14.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns. 14.2 No Third Party Beneficiaries. No provision of this Agreement is intended nor shall in any way be construed to benefit any party not a signatory hereto or to create a third-party beneficiary relationship. 14.3 Notices. All notices under this Agreement shall be effective upon personal delivery, upon delivery by reputable overnight courier service that provides a receipt with the date and time of delivery, or two (2) business days after deposit in the United States mail, registered, 882/015610-0046 7101504.1 a10/03/19 -7- certified, postage fully prepaid and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing: To Seller: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92628-1950 Attn: William H. Ihrke, Esq To Buyer: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92628-1950 Attn: William H. Ihrke, Esq. 14.4 Fair Meaning. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. 14.5 Headings. The headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the parties hereto and are not a part of this Agreement. 14.6 Choice of Laws; Litigation Matters. This Agreement shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service of process on Buyer shall be made in accordance with California law. Service of process on Seller shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 14.7 Nonliability of Buyer and Seller Officials. No officer, official, member, employee, agent, or representative of Buyer or Seller shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative. 14.8 Gender; Number. As used in this Agreement, masculine, feminine, and neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. 882/015610-0046 7101504.1 a10/03/19 -8- 14.9 Time of Essence. Time is of the essence of this Agreement and of each and every term and provision hereof, it being understood that the parties hereto have specifically negotiated the dates for the completion of each obligation herein. 14.10 Time Period Computations. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and California state or national holidays unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time and provide that if the last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or California state or national holiday, such act or notice shall be deemed to have been timely performed or given on the next succeeding day which is not a Saturday, Sunday or California state or national holiday. 14.11 Waiver or Modification. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 14.12 Broker’s Fees. Seller and Buyer represent and warrant to the other that neither Buyer nor Seller has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorney’s fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder’s fee in connection with the conveyance of the Property arising out of agreements by the indemnifying party to pay any commission or finder’s fee. 14.13 Duplicate Originals. This Agreement may be executed in any number of duplicate originals or counterparts, all of which shall be of equal legal force and effect. 14.14 Severability. If any term, covenant or condition of this Agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons, entities, or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 14.15 Exhibits. The following exhibits are attached hereto and incorporated herein by this reference: Exhibit “A” Legal Description of Property Exhibit “B” Depiction of Property Exhibit “C” Form of Grant Deed 14.16 Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering 882/015610-0046 7101504.1 a10/03/19 -9- into this Agreement does not violate any provision of any other agreement to which such party is bound. 14.17 Entire Agreement; Amendment. Except as set forth above, this Agreement and the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions of this Agreement may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized officers or representatives of each of the parties hereto. [END -- SIGNATURE PAGE FOLLOWS] 882/015610-0046 7101504.1 a10/03/19 -10- IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this Agreement, understands it, and hereby executes this Agreement to be effective as of the day and year first written above. SELLER: LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Jon McMillen, Executive Director ATTEST: Monika Radeva, Housing Authority Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP William H. Ihrke, Housing Authority Counsel BUYER: CITY OF LA QUINTA, a California municipal corporation and charter city By: Jon McMillen, City Manager ATTEST: Monika Radeva, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP William H. Ihrke, City Attorney 882/015610-0046 7101504.1 a10/03/19 -11- Four Seasons Escrow, Inc. agrees to act as Escrow Holder in accordance with the terms of this Agreement that are applicable to it. FOUR SEASONS ESCROW, INC. By: Name: Its: 882/015610-0046 7101504.1 a10/03/19 EXHIBIT “A” LEGAL DESCRIPTION OF PROPERTY [SEE ATTACHED] 882/015610-0046 7101504.1 a10/03/19 EXHIBIT “B” DEPICTION OF THE PROPERTY [SEE ATTACHED] 882/015610-0046 7101504.1 a10/03/19 EXHIBIT “C” FORM OF GRANT DEED [SEE ATTACHED] 882/015610-0046 7101504.1 a09/22/08 Page 1 of 4 RECORDING REQUESTED BY AND: WHEN RECORDED MAIL TO: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager Space above this line for Recorder’s Use Exempt from Recordation Fee per Gov. Code § 27383 MAIL TAX STATEMENTS TO: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager DOCUMENTARY TRANSFER TAX $0.00 [PUBLIC ENTITY TRANSFEREE] …. Computed on the consideration or value of property conveyed; OR …. Computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax – Firm Name Order No. Escrow No. GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, hereby grants, conveys, and transfers to the CITY OF LA QUINTA a California municipal corporation and charter city, the real property in the County of Riverside, State of California, described on Attachment No. 1 attached hereto and incorporated herein by reference (the “Property”). [continued on following page] 882/015610-0046 7101504.1 a09/22/08 Page 2 of 4 The Property conveyed hereby is subject to (i) non-delinquent general and special real property taxes; and (ii) matters of record. Date: “SELLER” LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Jon McMillen, Executive Director 882/015610-0046 7101504.1 a09/22/08 Page 3 of 4 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) [SEAL] A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/015610-0046 7101504.1 a09/22/08 Page 4 of 4 CERTIFICATE OF ACCEPTANCE This Certificate of Acceptance is to certify that the interest in real property conveyed by the grant deed dated __________________, from LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic (“Grantor”), to the CITY OF LA QUINTA, a California municipal corporation and charter city (“Grantee”), is hereby accepted by order of the CITY OF LA QUINTA pursuant to authority conferred on by Resolution No. 2019-XX, adopted by the Grantee’s City Council on October 15, 2019, and Grantee hereby consents to recordation thereof by its duly authorized officer. “GRANTEE” CITY OF LA QUINTA Date: By:___________________________________ Jon McMillen, City Manager A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/015610-0046 7101504.1 a10/03/19 Attachment 1 to Grant Deed ATTACHMENT NO. 1 TO GRANT DEED LEGAL DESCRIPTION OF REAL PROPERTY AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BY AND BETWEEN LA QUINTA HOUSING AUTHORITY (“SELLER”) AND CITY OF LA QUINTA (“BUYER”) TABLE OF CONTENTS Page 882/015610-0040 14248175.2 a10/03/19 -i- 1. PROPERTY ...................................................................................................................... 1 2. PURCHASE PRICE ......................................................................................................... 1 2.1 Amount ................................................................................................................. 1 2.2 Payment of Total Purchase Price .......................................................................... 1 3. ESCROW .......................................................................................................................... 2 3.1 Opening of Escrow ............................................................................................... 2 3.2 Escrow Instructions ............................................................................................... 2 4. TITLE MATTERS ............................................................................................................ 2 5. RIGHT OF ENTRY .......................................................................................................... 3 6. CLOSE OF ESCROW ...................................................................................................... 3 6.1 Close of Escrow; Closing Date ............................................................................. 3 6.2 Recordation; Release of Funds and Documents ................................................... 3 7. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER ............. 4 7.1 Buyer’s Obligations .............................................................................................. 4 7.2 Seller’s Obligations ............................................................................................... 4 8. TITLE INSURANCE POLICY ........................................................................................ 4 8.1 Title Policy ............................................................................................................ 4 8.2 Payment for Title Policy ....................................................................................... 5 9. INTENTIONALLY OMITTED ....................................................................................... 5 10. CONDITIONS PRECEDENT TO CLOSING ................................................................. 5 10.1 Conditions Precedent to Buyer’s Obligations ....................................................... 5 10.2 Conditions Precedent to Seller’s Obligations ....................................................... 5 11. POSSESSION ................................................................................................................... 6 12. ALLOCATION OF COSTS ............................................................................................. 6 12.1 Buyer’s Costs ........................................................................................................ 6 12.2 Seller’s Costs ........................................................................................................ 6 12.3 Miscellaneous Costs.............................................................................................. 6 Page 882/015610-0040 14248175.2 a10/03/19 -ii- 13. COVENANTS OF SELLER............................................................................................. 6 14. MISCELLANEOUS ......................................................................................................... 7 14.1 Assignment ........................................................................................................... 7 14.2 No Third Party Beneficiaries ................................................................................ 7 14.3 Notices .................................................................................................................. 7 14.4 Fair Meaning ......................................................................................................... 7 14.5 Headings ............................................................................................................... 7 14.6 Choice of Laws; Litigation Matters ...................................................................... 7 14.7 Nonliability of Buyer and Seller Officials ............................................................ 8 14.8 Gender; Number.................................................................................................... 8 14.9 Time of Essence .................................................................................................... 8 14.10 Time Period Computations ................................................................................... 8 14.11 Waiver or Modification......................................................................................... 8 14.12 Broker’s Fees ........................................................................................................ 8 14.13 Duplicate Originals ............................................................................................... 8 14.14 Severability ........................................................................................................... 8 14.15 Exhibits ................................................................................................................. 9 14.16 Authority ............................................................................................................... 9 14.17 Entire Agreement; Amendment ............................................................................ 9 EXHIBITS Exhibit “A” Legal Description of Property Exhibit “B” Depiction of Property Exhibit “C” Form of Grant Deed PARCEL 'A' PARCEL 'B' PARCEL 'C' (FORMALLY "46TH AVENUE")DUNE PALMS ROADWESTWARD HO DRIVE T.P.O.B. PARCEL 'B' P.O.C. ALL PARCELS T.P.O.B. PARCEL 'A' P.O.B. PARCEL 'C' PREPARED FOR:DATE:SEPT. 2019CITY OF LA QUINTA CITY OF LA QUINTA LOT LINE ADJUSTMENT No. 2019- _____ EXHIBIT 'B' 42-829 COOK STREET, SUITE 104 760.341.3101 TEL 760.341.5999 FAX PALM DESERT, CA 92211 WWW.NV5.COM • • • • Housing Commission Special Meeting October 9, 2019 Housing Commission -Special Meeting October 9, 2019 Business Session Item No. 1 REVIEW AND APPROVE CASH MANAGEMENT POLICY Policy Summary •Requested by CJPIA and CalTrans •For all City Funds and monetary transactions •Outlines current processes •Includes section on Federal Funds •Reviewed internally & by City Attorney •After Commission reviews, City Council will adopt Housing Commission -Special Meeting October 9, 2019 Business Session Item No. 2 RECOMMEND APPROVAL OF LOT LINE ADJUSTMENT,ACCESS EASEMENT,AND SALE OF PORTIONS OF REAL PROPERTY AT 46150- 46176 DUNE PALMS ROAD (APNs 600-030-022 AND –023)FROM THE LA QUINTA HOUSING AUTHORITY TO THE CITY OF LA QUINTA FOR FUTURE PARK AND DRAINAGE IMPROVEMENTS Introduction •City seeks to purchase Housing Authority property •Facilitate two Capital Improvement Program (CIP) Projects •Proposed lot line adjustment to current parcels Proposed Parcels •Parcel A : La Quinta X Park (2016-09) –79,143 Sq. Ft. •Parcel B : Citywide Drainage Project (Dune Palms Retention Basin 2015-12D) –53,539 Sq. Ft. •Parcel C: Housing Authority –121,551 Sq. Ft. •Access Easement: Ingress and Egress Property Purchase PROPERTY PURCHASE PRICE PARCEL A: La Quinta X Park $633,144 PARCEL B: Citywide Drainage Project $428,312 ACCESS EASEMENT: Ingress and Egress $0 TOTAL:$1,061,456 •Purchase price based upon appraised fair market value Questions? Housing Commission Meeting Next Meeting Date December 11, 2019 Housing Commission -Special Meeting October 9, 2019 Departmental Report Item No. 1 SB 2 PLANNING GRANTS PROGRAM, BUILDING HOMES AND JOBS TRUST FUND Background •March 2,2019,the State of California Department of Housing and Community Development (HCD)issued a Notice of Funding Availability of up to $123 million under Senate Bill (SB 2)Planning Grants Program from the Building Homes and Jobs Trust Fund. Background •SB 2 is funded by fees levied on certain realestatetransactionsandisexpectedtogeneratebetween$250 to $300 million annually. •Local governments will be eligible to apply forplanninggrants. •HCD has identified that,as a smaller locality,theCityiseligibletoapplyforupto$160,000 in anon-competitive manner. Purpose •Staff has received approval by Council to apply for these funds as ofOctober2,2019. •Staff intends to apply by the end of October 2019 (deadlineNovember2019)to utilize the $160,000 for the followingopportunities: –Possible rezoning of properties to Permit By-right additional housingopportunities; –Identify ways to streamline pre-approved projects for affordablehousingefforts; –Promote awareness of innovative building strategies;and –Streamline the entitlement and permitting processes Conclusion •It is anticipated that the $160,000 will assist inthecreationofaminimumof10-15 AffordableHousingMulti-Family Units,and result instreamliningofoverallhousingdevelopment. •Staff will monitor SB 2 funding availability in thecomingyearstoanticipateapplyingforfurtherfundsdevotedtowarddevelopmentofAffordableHousingintheCity.