2013 02 21 SACITY AS SUCCESSOR ACIENCY
TO THE LA QUINTA REDEVELOPMENT A&ENCY
Agendas and staff reports are
available on the City's web page:
www.la-quinta.org
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, FEBRUARY 21, 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-001
CALL TO ORDER
ROLL CALL
Successor Agency Members:
Evans, Franklin, Henderson, Osborne and Chairperson Adolph
CLOSED SESSION - NONE
PUBLIC COMMENT
At this time members of the public may address the City Council acting as the legislative
body for the City as Successor Agency to the La Quinta Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1 . APPROVAL OF MINUTES OF FEBRUARY 7, 2012
CONSENT CALENDAR
1 APPROVAL OF DEMAND REGISTER DATED FEBRUARY 21, 2012
01
CITY AS SUCCESSOR AGENCY TO RDA 1 FEBRUARY 21, 2012
2. RECEIVE AND FILE TREASURER'S REPORT DATED DECEMBER 31, 2011
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT FOR DECEMBER
31, 2011
BUSINESS SESSION
CONSIDERATION OF THE MID -YEAR BUDGET REVIEW
2. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE
DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE OF THE FORMER
LA QUINTA REDEVELOPMENT AGENCY
STUDY SESSION — NONE
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on March 6, 2012 commencing with closed session at 3:00 p.m. and
open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta,
CA 92253.
DECLARATION OF POSTING
1, Susan Maysels, Interim City Clerk of the City as Successor Agency of the La Ouinta
Redevelopment Agency, do hereby declare that the foregoing agenda 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 February 17, 2012.
DATED: February 17, 2012
SUSAN MAYSELS, InterWn City Clerk
City of La Quinta, California
Public Notices
The La Quinta City Council Chamber is handicapped accessible. If special equipment is
needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty-
four (24) hours in advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the City Council,
arrangement should be made in advance by contacting the City Clerk's Office at 777-7103.
A one (1) week notice is required.
002
, I
CITY AS SUCCESSOR AGENCY TO RDA 2 FEBRUARY 21, 201 Z�-* - � - -
If background material is to be presented to the City Council during a City Council meeting,
please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to
the City Clerk for distribution. It is requested that this take place prior to the beginning of
the meeting.
Any writings or documents provided to a majority of the City Council 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.
03
CITY AS SUCCESSOR AGENCY TO RDA 3 FEBRUARY 21, 2012
Tdf 4 4 Qaha
COUNCIIQMEETING DATE: February 21, 2012
ITEM TITLE: Approval of Demand Register Dated
February 21, 2012
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
February 21, 2012 of which $5,937,793.33
Represents Successor Agency Expenditures as detailed below:
Vendor:
Coachella Valley Mosquito & VCD
Coachella Valley Water District
Desert Sands Unified School District
Desert Community College District
Riverside County Superintendent
Desert Recreation District
Account #:
Amount:
Purpose:
,
301-9001473.82-58
$227,328.82
Pass
Thru
Pymt
302-9002473.82-58
$164,646.49
Pass
Thru
Pymt
301-9001-473.82-65
$245,836.66
Pass
Thru
Pymt
302-9002-473.82-55
$887,937.72
Pass
Thru
Pymt
301-9001-473.82-67
$1,161,967.97
Pass
Thru
Pymt
302-9002-473.82-67
$2,177,024.31
Pass
Thru
Pymt
301-9001-473.82-73
$312,302.69
Pass
Thru
Pymt
302-9001473.82-73
$452,377.66
Pass
Thru
Pymt
302-9002-473.82-70
$246,116.70
Pass
Thru
Pymt
302-9002473.82-76
$62,255.31
Pass
Thru
Pymt
0o4
By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected
to be the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to
Health and Safety Code Section 34177(a), the Successor Agency of the La Quinta
Redevelopment Agency shall continue to make payments required pursuant to an
adopted enforceable obligations payment schedule. The payments above are required
pursuant to the enforceable obligations payments schedule adopted by the La Quinta
Redevelopment Agency on January 17, 2012.
Pursuant to Health and Safety Code Seciton 34173(e), the liability of the Successor
Agency of the La Quinta Redevelopment Agency, when acting pursuant to the powers
granted under ABX1 26, are limited to the extent of the total sum of property tax
revenues it receives pursuant to part 1.85 of ABX126 (e.g., Health and Safety Code
Sections 34170 — 374190) and the value of assets transferred to it as Successor
Agency for the dissolved La Quinta Redevelopment Agency.
005
COUNCILIRDA MEETING DATE: February 21, 2012
ITEM TITLE: Receive and File Transmittal of
Treasurer's Report as of December 31, 2011
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 2�-
STUDY SESSION:
PUBLIC HEARING:
It is recommended the Successor Agency to the La Quinta Redevelopment Agency:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
.11 0o6
4
114 7ic;sr- 0�ir; 70W
COUNCILIRDA MEETING DATE: February 21, 2012 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Reports dated December 31, 2011 CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Receive and File
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Transmittal of the December 31, 2011 Statement of Revenue and Expenditures for
the Successor Agency to the La Quinta Redevelopment Agency.
Respectfully submitted,
0 007
LA QUINTA REDEVELOPMENT AGENCY
EXPENDITURE SUMMARY
PROJECT AREA NO. I:
LOWIMODERATE TAX FUND:
DEBT SERVICE FUND:
FUND:
2011 TAXABLE HOUSING BORD(249)
ADJUSTED 12(31MI REMAINING
BUDGET UPENDITURIES ENCUMBERED BUDGET
SERVICES
5W,575,W
127,97413
0 w
�,�0.87
2nd TRUST DEED PROGRAM
520,DDO.00
81,ODD.00
Dw
439,".w
HABITAT FOR HUMANITY
wo,mao
5,IW.W
000
295.060,00
LAND ACQUISITION
0.00
000
o.w
0.00
LOW MOD HOUSING PROJECTS
0.00
o.w
o.w
Doo
FORECLOSURE
800=w
DIM
0.130
sm,"Do
REIMBURSEMENT TO GEN FUND
791,56100
395,784,W
000
395.777.00
TRANSFERS OUT
9,M 245.W
3,177 33
1�01
1:%:T7M1&317
TOTAL LOWIMOD T"
lz,btu,w.w
0
5 4
SERVICES
411,6W.00
9.wl.w
G.00
402,21&12
BOND PRINCIPAL
3,w,om.00
3,w,"m
000
0,00
BOND INTEREST
6,724,310,00
3,418.315,63
0,00
3,305,91�1.37
PASS THROUGH PAYMENTS
20,211,350.00
�,076.47
Doo
19,377,273S3
ERAF SHIFT
0,00
000
0,00
0,00
TRANSFERS OUT
..
2!;g3lo'lo
7:
TOTAL DEBT SERVICE --l'&3
40 SHOD
10
&01
1 gl5l!27737 Ul
SERVICES 205,700,00
REIMBURSEMENT TO GEN FUND 407,125,00
Doo 153,994�58
0,00 203,557,00
SERVICES 11,000,w 9,978,22 Dw 1,021.78
TRANSFERS OUT 25 514 502 W 12!Dll�537 255024M63
TOTAL MI I TAXABLE HOUSIM43 BOND 25qo25!b0T00 22 43 g om
...v 009
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
1201/11
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
SERVICES
330,47000
58.3� 97
&W
272,135,03
2ND TRUST DEEDS
om
0�w
000
om
LOW MOD HOUSING PROJECTS
3," W
0,00
0,00
3,ODO,00
FORECLOSURE ACQUISITION
450,000,00
0,w
0 DO
450,00000
REIMBURSEMENT TO GEN FUND
�,4W.W
224,2",W
0 w
224,246,00
TRANSFERS OUT
14.5�9.736�W
2.331.859 65
000
12.237.816.35
2004 LOWIMODERATE BOND FUND
TOTAL LOWWOD TAX
HOUSING PROGRAMS o.w o.w o.w 0 w
LAND 0,w ODO 000 0,00
TRANSFERS OUT 330715500 IM 11�13 &, 311322527
TOTAL LOWAMOD BOND 3:307:155.00 1§2§ 73 0 w
DEBT SERVICE FUND:
SERVICES
255,100.00
3,775,00
0,00
251,K5,W
BOND PRINCIPAL
wo,"'00
im'"m
0,00
250,000.00
BONDINTEREST
633643.00
252.757,07
0.01)
W1,085,93
PASS THROUGH PAYMENTS
16,137,�KOO
0.00
0,00
16,137,298.W
ERAF SHIFT
000
000
0,00
o.w
TRANSFERS OUT
4,118,152.00
450,437.W
OLO
2!gll 72134
TOTAL DEBIT SERVICE
21,524,393.00
T20
87!4 3
CAPITAL IMPROVEMENT FUND:
SERVICES
99,M.W
51,1351,15
0�00
47,M 85
CAPITAL
0.00
o.w
0�w
000
REIMBURSEMENT TO GEN FUND
117,587,00
58,79400
0,00
58.793.W
TRANSFERS OUT
1 W5451 00
�,25).W
o.w
1
TOTAL CAPITAL IMPROVEMENT
Z!ltimm
lw,895.18
,!Kl;!j;�17
02
2011 RDA 2 TAXABLE 13OND FUND:(417)
SERVICES
11,50000
9,491,31
0,00
2,008,69
ECONOMIC DEVELOPMENT
0.00
o.w
TRANSFERS OUT
242028&W
0.000
241762618
TOTAL RDA NO.2 TAXABLE BOND
3:931:186.00
iml`
12 3
6
, ..q 010
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 1:
LOWfMODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Aliccated Interest
Non Allocated Interest
Home Sales Proceeds
Sale of Land
Sewer Subsidy Reimbursements
Rehabilitation Loan Repayments
2nd Trust Deed Repayment
Williams Note Payment
Transfer In
TOTAL LOWIMOD TAX
DEBT SERVICE FUND:
Tax Irtcrement
Allociiited Interest
Non Allocated Interest
Interest - County Loan
Interest Advance, Proceeds
Tiansfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
Non Aillocated Interest
DeveloperAgreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL CAPITAL IMPROVEMENT
2011 TAXABLE HOUSING BOND FUND:
Pooled Cash Allocated! Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers In
TOTAL 2011 TAXABLE HOUSING BOND
0710112011 - 1170111201111
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
8,802,400.00
0�00
8,802,400.00
0.000%
44,600.00
1,792.96
42,807.04
41�020%
0.00
582.05
(582,05)
0.000%
0.00
1,226.22
(1,226.22)
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
1,467.84
(1,467.84)
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%
8,847,000.00
5,069.07
8,841,930.93
0.060%
35,209,600.00
0.00
35,209.600.00
0.000%
3,000.00
(13,122.95)
16,122.95
43T430%
0.00
0.00
0.00
omo%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
5,486,446.00
3,369.978.62
2,126,466.48
611�240%
40,699,046.00
3,346,866.67
37,362,189.43
8.220%
25,700.00
(113,89917)
39,599.17
-54.080%
18,800.00
4,252.55
14,547.45
22.620%
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%
6,000,000.00
0.00
6,000,000.00
0.0110%
5,044,500.00
(9,646.62)
5,054,146.62
-0.190%
0.00
0.00
0.00
0�1)00%
0.00
2,363.00
(2,363.DO)
O.D00%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
omo%
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
2,363.00
(2,363.00)
0.000%
Oil
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. 2:
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Mlocated Interest
Developer funding
2nd Trust Deed Repayment
Sale of Land
Transfer In
TOTAL LOWIMOD TAX
2004 LOWIMODERATE BOND FUND:
Allocated Interest
Home Sale Proceeds
Non Allocated Interest
TransfLr In
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
Tax Increment
AJIocatad Interest
Non Allocated Interest
Interest Advance Proceeds
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND:
Allocated Interest
Non Mlocatedl Interest
Misc Revenue
Sale of land
Transfers In
TOTAL CAPITAL IMPROVEMENT
2011 TAXABLE NON -HOUSING BOND FUND:
Pooled Cash AJIocated Interest
Non Mlocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
I-rdgation Proceeds
Transfers In
TOTAL 2011 TAXABLE NON -HOUSING BOND
07/0112011 - 12/3112011
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
4,800,480.00
0.00
4,800,480.00
0.000%
60,800.00
8,429.49
52,370.51
13,860%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
8,744.99
(8,744.99)
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0�000%
4,861,280.00
17,174.48
4,844,105.52
0.350%
0.00 0.00 0.00 0.000%
0.00 0.00 0�00 0.000%
4,815.00 195.00 4,620.00 4.060%
4,815.00 19&00 4.620.00 4.060%
19,201,924.00
0.00
19,201,924.00
0.000%
200.00
(15,788.12)
15,988.12
-7894.060%
0.00
172.00
(172.00)
0.000%
0.00
0.00
0.00
0,000%
2,468,152.00
1,453,097.38
1,015,054.62
58.870%
21,670,276.00
1,437,481.26
20,232,794.74
6.630%
0.00
(5,685.87)
5,685e7
0.000%
0.00
44,678.04
(44,678.04)
0.000%
0.00
0.00
0.00
0.000%
0�00
0.00
0.00
0.000%
1,650,000.00
0.00
1,650,000.00
0.000%
1,650,000.00
38,992.17
1,611,00T83
2.360%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
0.00
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%
012
(�ei� 4 412"Aro
COUNCIL/RDA MEETING DATE: February 21, 2012
ITEM TITLE: Consideration of Mid -Year Budget Report
for Fiscal Year 2011/2012
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the decrease of $(30,2�7,764) in estimated revenues for the La Quinta
Redevelopment Agency;
Approve the decrease of $(10,940,879) in appropriations for the La Quinta
Redevelopment Agency;
Approve the increase of $16,884,830 in estimated revenues for the Successor
Agency to the La Quinta Redevelopment Agency;
Approve the increase of $7,353,388 in appropriations for the Successor Agency to
the La Quinta Redevelopment Agency; and
Receive and file the Mid -Year Budget Report.
FISCAL IMPLICATIONS:
Staff has estimated the impacts of the revenues and expenditures for the
Redevelopment Agency (RDA) at mid -year based upon the January 31, 2012
dissolution as follows:
..1 013
ILa Quints Redevelopment Agency I ftdffmM Rmnues
Summary by Fund:
Tax Increment
Interest
Subtotal
Transfers In
Toted
RnA PA I UAN Mod Fund
$ (4,679,17e)
$ -
$ (4,1579,176)
i--
$ (4,679,178)
RDOk PA 2 UAN Mod Fund
(2.458,998)
(2,468,998)
(2,458,998)
RnA PA I Debt Service Fund
(18,704,513)
(18,704,513)
6,361,145
(12,343,368)
RDA PA 2 Debt Service Fund
(9,835,995)
(9,835,995)
(1,017.714)
(10,853,709)
RDA PA I Capital Impovements
-
-
RDA PA 2 Capital Improvements
76,802
76,802
78,802
2004 Low Mod Housing Fund
(4,315)
(4,315)
(4,315)
2011 Low Mod Bond Fund
6,000
5,000
5,000
2011 PA 2 Twable Bond Fund
-
-
11rotal
1 $ (35,678,682)1
$ 77,487110
(35.601.195)]
$ 5
JUQuM�"�Aqwy I
�M.q b, F�:
P� nm.0
AS � C..M F..
�U�P�
�.W
5�61
T�. W
R�
� PA I � MW F�
3 (14.507)
S
On
(13.M)
S (2,IM.407)
$ (129.820)
---
11 (2470012)
�PA2��Fwd
(SIM)
42
(5.08W
(1,017,714)
(108,M)
0.209.00`0
� PA; Wh Se� FWd
(10.Now)
17,612
(3,=,M)
03.079.W)
e.086,478
(S.M.M)
RMPA 'M �� F�
(F.M.256)
(9.032)
(381M)
(8,312,3M)
(46ZW)
(S.M.909)
� PA I C@pW lm�sft
8.07.612
(135.140)
8.362.472
�PA2CvWlm�sft
(251005)
(25,M)
201 � Mod EWW F�
�
01 PA2`r.��F�
T�
W.W425)
- 11747371
(an me)
$ o� w K
Staff has estimated the impacts of the revenues and appropriations for the new
Successor Agency to the La Quinta Redevelopment Agency (RDA) at mid -year as
follows:
JSuccessor Agency to the La Quints Redevelopment Agency I Estimated Revenues I
Summary by Fund:
I County of Riverside
I Transfers in
Total
PA 1 Admin Fund
$ 286,540
$
$ 286.540
PA 2 Admin Fund
141,131
141,131
PA I Project Fund
5 432,"S
8,976,264
14,408,712
n$1
PA 2 Project Fund
1:493,269
555,178
2,048,"7
Total
$ 7,353,388
1 $ 9,531,"2
16,884,830
S�Aoeng W the La QuirW RedoydWOOrd A(rMy I APWP�,
ISUMM by Funa
I Legal
I Cndent
Audfi�
I Detft,-�m
SWWW
I ReiftltknOffoft
I T.W
PA 1 �M FumJ
$ 50
$
1
$
Is
1
$ M W
PA 2 Admh Fumcl
26:=
e`=
2:414
8W
4'9:'196
9,1:,935
141:131
PA I ftiset Funod
11,40D
25,000
3933381
1 51109:179
6.429,7381
2.710
5.432.448
�
PA2PrOJ9UFUrd
21,000
30,0001
1,480,T79
32,493
1,493,269
Total
$ 1091000
1 $ 120,ODO
I S 8,030
5 6,002,517
5 7,009,597
111 313,791
$ 7=388
Further details regarding the mid -year estimated revenue and appropriation changes
may be found in Attachments 1 and 2.
La Quinta Redevelopment Project Area 2 Loan
The RDA Capital Project PA 2 Fund loaned the Transportation Development Impact
Fee (DIF) Fund $1,276,516 at 7% annual interest to complete the Highway 111
Landscape Median Improvements. The project is completed and the loan has been
reduced by $428,939 based upon costs savings from the competitive bidding
environment. Additionally, the loan has been further reduced by an additional
$344,801 due to the fact that the Dune Palms Bridge Improvement Project
014
budgeted for in the Transportation DIF Fund will be delayed several years. As a
result, of these two repayments the outstanding balance on the loan is $502,775.
BACKGROUND AND OVERVIEW:
This year's mid -year report involves the financial activities of two entities — the
Successor Agency and the former La Quinta Redevelopment Agency. It differs
significantly from past mid -year reports in that the La Quinta Redevelopment
Agency was dissolved as of January 31, 2012 and the new Successor Agency
took its place on February 1, 2012.
Prior to January 31, 2012, the County Would send the Redevelopment Agency its
tax increment share and the Agency would perform the duties of paying the debt
service, paying the pass through payments, performing Low & Moderate Housing
functions and constructing capital projects within the project area. The tax
increment collected in Fiscal Year 2010/2011 amounted to $68.1 million.
After January 31, 2012, the Redevelopment Agency will no longer receive the tax
increment revenues. The County will now use these tax increment revenues and
pay the Successor Agency for the semi-annual bond indebtedness payments,
payments required by enforceable obligations, certain project management costs
for those capital projects that are the subject of enforceable obligations, and certain
administrative costs. Pass -through payments made after January 31 will now be
paid by the County of Riverside. Funds remaining after these payments will go to
other taxing agencies in the City (including the City of La Quinta) in an amount
determined by the County of Riverside.
Staff has consulted with our attorneys, consultants, auditors, and County staff to
put forth our best effort to begin the process of winding down the La Quinta
Redevelopment Agency. It should be noted that in implementing this legislation,
issues will come up that will lead to interpretations and future directives that may
require staff to come back to the Agency with changes, which we will be fully
prepared to do.
Successor Agency
This mid -year report details the first steps staff has taken on beginning the process
of winding down the Agency. These efforts will be ongoing and this report should
not be seen as the end product but rather the first stage of this process.
The three primary areas that are addressed in this mid -year report are as follows:
015
1 . Making a $6.3 million debt service payment on March 1, 2012, which is
thirty days after the Redevelopment Agency ceased to exist.
2. The completion or the elimination of all non -housing capital projects.
3. Establishing new administrative and project management budgets that are
based upon a more limited scope of activities and therefore results in less
reimbursement to the General Fund for staff time than the prior
Redevelopment Agency activities.
Items 1 and 2
The best way to understand the efforts taken on the first two items is to view the
pooled cash an hand at January 31, 2012 and at June 30, 2011 in the following
table:
Pooled Cash Account
Fund Type
no 30. 2011
Debt Smice
Capitol Pmjects
PA 1
PA2
T
$ 1,1342,2(Y7
9.943.002
Z
40tal
S 15,101
-
$ 1,147,308
9,943,802
Subtotal - RDk
11076009
S 15101
11091 110'
SuooessorAcionev
$ -
$
i
umv 31. 2012
PA1
PA2
I Total
5,697
_�5697
8,978,264
Chme
PA1
PA2
Total
$ (1,132,207)
(9,938.105)
S(15,101)
71,973
S (1,147,308)
(9,866,132)
$011,070,312)
$ 56,872
$UI&L3�4�40
iE§LiZLLL_2&nAiL
Analyzing the January 31 balances of the Successor Agency results in over $9.5
million being transferred from the Redevelopment Agency to the Successor
Agency. In addition, the remaining cash balances in the Capital Projects Fund of
$77,670 report that essentially all of the non -housing Capital Projects have been
completed. The remaining Capital Project funds are necessary to pay for
outstanding invoices and obligations that will be paid on the "A" Street expansion
after January 31, 2012.
Items 3
The Successor Agency is required to prepare an updated Recognized Obligation
Payment Schedule or "ROPS" report by March 1 setting forth the estimated
payments that will be need to be made during the five month period from February
through June 30, 2012. These costs include both staff efforts and other
professional services that will be needed. The preliminary calculations are as
follows:
016
Description
Administrative Costs
Project Management
Total
Staff Salaries & Fringes
Staff non -personnel
$ 216,200
62,391
31,078
4,122
$ 247,276
66,513
Subtotal
278,591
35,200
313,791
Legal
Consultant
Auditor
ITotal
76,000
65,000
8,080
33,000
55,000
-
109,000
120,000
8,080
427,671
1 $ 123,200
1 $ 550,871 1
Other areas that will require further attention in the future by this Board and the
Oversight Board, that have not been addressed in this mid -report include:
• Unspent non -housing and housing bond proceeds
• Other assets, primarily loans, that the Agency has
• Low and Moderate Income Housing cash
• Low and Moder ' ate Income Housing Capital Projects
• Outstanding contracts
Provided as part of Attachment 3 is the revenue and expenditure detail for the RDA
and the Successor Agency.
Staff will bring forward a separate action item at a future meeting for the adoption
of a formal proposed administrative budget for the Successor Agency in
accordance with Health & Safety Code Section 34177(j). That budget will be
transmitted to the oversight board.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Successor Agency of the La Quinta
Redevelopment Agency include:
1 Approve the decrease of $(30,257,764) in estimated revenues for the La
Quinta Redevelopment Agency;
Approve the decrease of $(10,940,879) in appropriations for the La Quinta
Redevelopment Agency;
Approve the increase of $16,884,830 in estimated revenues for the
Successor Agency to the La Quinta Redevelopment Agency;
Approve the increase of $7,353,388 in appropriations for the Successor
Agency to the La Quinta Redevelopment Agency; and
-a 017
Receive and file the Mid -Year Budget Report.
2. Do not approve the above changes; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
ykj_ I'\_ -,.?-N
Mark Weiss, Interim Executive Director
Attachments: 1. Mid -Year review budget worksheet
-2. Mid -Year review budget detail
3. RDA and Successor Agency Revenue and Expenditures through
December 31, 2011
018
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COUNCIL/RDA MEETING DATE: February 21, 2012
ITEM TITLE: Consideration of Adoption of a Resolution
Approving the Draft Recognized Obligation Payment
Schedule of the Former La Quinta Redevelopment
Agency
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt a Resolution approving the draft Recognized Obligation Payment Schedule of
the Former La Quinta Redevelopment Agency ("Schedule").
FISCAL IMPLICATIONS:
None for this action. The draft Recognized Obligation Payment Schedule will be
provided to the Oversight Board for review and approval.
BACKGROUND AND OVERVIEW:
On January 17, 2012, the former La Quinta Redevelopment Agency approved an
Enforceable Obligation Payment Schedule. That schedule was required by ABx1 26
so that pledges of revenues associated with enforceable obligations of the former
redevelopment agency could be honored (i.e., so that any payments required could
be made by the Redevelopment Agency prior to dissolution, and by the Successor
Agency after dissolution).
Under ABx1 26, as modified by the California Supreme Court with regard to the
statutory deadline, the Successor Agency must approve a draft Schedule by March
1, 2012. The Schedule must then be presented to the Oversight Board for
consideration and approval prior to the April 1 51h deadline for the Schedule to be
transmitted to the State. This Schedule covers the period of January through June
2012. However, based upon the recommendation of the County Auditor, it will
cover additional payments that will be required to be made prior to the subsequent
disbursement by the County. This will become an ongoing process — an updated
Schedule will be prepared every six months for Oversight Board consideration and
approval.
11-41. 030
The Schedule is required to list all of a redevelopment agency's monetary
obligations that are "a ' nforceable" within the meaning of the Dissolution Act and
must include, for each obligation:
(A) The project name associated with the obligation.
(B) The payee.
(C) A short description of the nature of the work, product, service, facility, or
other thing of value for which payment is to be made.
(D) The amount of payments obligated to be made, by month.
(E) The funding source for the obligation.
Staff has further refined the Schedule to include project -specific management costs
(i.e., staff time, building rent, legal, consulting, etc.) which are separate from the
general administration of the Successor Agency. In addition, staff is including bond
principal and interest payments that must be paid in September 2012. Staff is
requesting the funding be remitted to the Successor Agency in June 2012 to
ensure the Successor Agency has adequate cash flow to cover the bond payments.
It should be noted a separate Administrative Budget will be prepared for Successor
Agency consideration at the March 6" meeting.
This schedule will be submitted to the Oversight Board. Once the Oversight Board
has reviewed and approved the Schedule, the Schedule is then submitted to the
County Auditor -Controller, State Department of Finance and State Controller's
Office. The County Auditor -Controller will collect the property taxes, distribute
pass -through payments, collect its administrative fees, remit the amounts listed on
the Schedule and Administrative Budget to the Successor Agency, and distribute
the remainder to the various taxing agencies (e.g., school districts, fire districts,
etc.). The Successor Agency is the responsible for actually making the payments
listed on the Schedule.
The Schedule included in the attached resolution is a draft. Staff is refining the
document and will hand out an updated schedule at the Successor Agency
meeting.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1 Adopt a Resolution approving the draft Recognized Obligation Payment
Schedule of the Former La Quinta Redevelopment Agency; or
4,.%. 031
2. Do not adopt a Resolution approving the draft. Recognized Obligation
Payment Schedule of the Former La Quinta Redevelopment Agency; or
3. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell,
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss, Interim Executive Director of
the City as Successor Agency to the Former
Attachment: 1. Draft Recognized Obligation Payment Schedule
032
RESOLUTION NO. SA 2012 -
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS THE SUCCESSOR AGENGY TO LA QUINTA
REDEVELOPMENT AGENCY ADOPTING THE DRAFT
RECOGNIZED ENFORCEABLE OBLIGATION PAYMENT
SCHEDULE
WHEREAS, the City Council of the City of La Quinta ("City Council" or "City," as
applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project Area
No. 1 ("Project Area No. 1 " or "Project Area No. 1 Redevelopment Plan," as applicable)
on November 29, 1983, by Ordinance No. 43, as amended on December 20, 1994, by
Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on March 16,
2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; and
WHEREAS, the La Quinta Redevelopment Agency ("Agency") was engaged in
activities to execute and implement the Project Area No. 1 Redevelopment Plan and
the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment
Plans") pursuant to the provisions of the California Community Redevelopment Law
(Health and Safety Code § 33000, at seq.) ("CRL"); and
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature
enacted and the Governor signed, companion bill Al3x1 26 requiring that each
redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABxl 27
has been filed in the California Supreme Court by the California Redevelopment
Association, the League of California Cities, and two individual cities; and
WHEREAS, on December 29, 2011, the Court upheld Al3x1 26; and
WHEREAS, Health and Safety Code Section 34169 requires successor agencies
to prepare and adopt a "Draft Recognized Enforceable Obligation Payment
Schedule" that lists all obligations of the former redevelopment agency that are
enforceable within the meaning of subdivision (d) of Section 34167 for the period
of January 2012 through June 2012; and
WHEREAS, Health & Safety Code Section 34169 requires redevelopment agencies
to provide the "draft enforceable obligation payment schedule" to the Successor
.. Is 033
Resolution No. SA 2012-
Adoption of Recognized Enforceable Obligations Payment Schedule
Adopted: February 21, 2012
Page 2
Agency, so that pledges of revenues associated with enforceable obligations of the
former redevelopment agencies are honored; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW THEREFORE, BE IT RESOLVED, by the City of La Quinta Acting as the
Successor Agency to the La Quinta Redevelopment Agency, as follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Adoption of a Draft Recognized Enforceable Obligation Payment
Schedule. In order to enable the City of La Quinta as Successor Agency to strictly
comply with ABx1 26, and based on the Recitals set forth above, the Successor
Agency hereby adopts the Schedule attached hereto as Exhibit A as the Draft
Recognized Enforceable Obligation Payment Schedule. Pursuant to Health & Safety
Section 341 73(e), the Successor Agency's liability, including, but not limited to, its
liability for the obligations on the attached schedule is limited to the total sum of
property tax revenues it receives pursuant to Part 1.85 of AB x1 26.
Section 3. Implementation. The Successor Agency hereby authorizes and
directs the Interim Executive Director to take any action and execute any
documents necessary to implement this Resolution, and further authorizes the
Interim Executive Director to forward the Draft Enforceable Obligation Payment
Schedule to the Oversight Board.
Section 4. Severability. If any provision of this Resolution or the
application thereof to any person or circumstance is held invalid, such invalidity
shall not affect other provisions or applications of this Resolution which can be
given effect without the invalid provision or application, and to this end the
provisions of this Resolution are severable. The Successor Agency hereby declares
that it would have adopted this Resolution irrespective of the invalidity of any
particular portion thereof.
PASSED, APPROVED, AND ADOPTED at the meeting of the City of La
Quinta Acting as the Successor Agency to the La Quinta Redevelopment Agency
held this 21 st of February, 2012, by the following vote, to wit:
AYES:
NOES:
C 3 4
Resolution No. SA 2012-
Adoption of Recognized Enfofceable Obligations Payment Schedule
Adopted: Febmary 21, 2012
Page 3
ABSENT:
ABSTAIN:
Don Adolph, Mayor
City of La Quinta
Agency to the La
Agency
ATTEST:
SUSAN MAYSELS, Interim Secretary
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Successor Agency Counsel
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
Acting as Successor
Quinta Redevelopment
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