2012 08 07 SACITY AS SUCCESSOR ACIENCY
TO THE LAQUINTA REPEVELOPMENTACENCY
Agendas and staff reports are
available on the City's web page:
www.la-quinta.org
CITY COUNCIL CHAMBERS
78-495 Calle Tampico I La Quinta, California
Regular Meeting
TUESDAY, AUGUST 7, 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-010
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 JULY 17, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 APPROVAL OF DEMAND REGISTER DATED AUGUST 7, 2012
N01
CITY AS SUCCESSOR AGENCY TO RDA 1 AUGUST 7, 2012
2. ADOPTION OF A RESOLUTION APPROVING A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE OF THE FORMER LA QUINTA REDEVELOPMENT
AGENCY FOR THE PERIOD OF JANUARY 2013 THROUGH JUNE 2013
BUSINESS SESSION - NONE
STUDY SESSION - NONE
ADJOURNMENT
The regular meetings of August 21, 2012 and September 4, 2012 have been
cancelled. The next regular meeting of the City as Successor Agency to the La Quinta
Redevelopment Agency will be held on September 18, 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, Yvonne Franco, Interim Deputy City Clerk of the City as Successor Agency to the La
Quinta 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 August 3, 2012.
JDAED ' August
no
Y NNEFRANC uty 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.
• 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.
-002
CITY AS SUCCESSOR AGENCY TO RDA 2 AUGUST 7, 2012
Taf 4 4& a"
CITY�EETING DATE: Au.qust 7, 2012
ITEM TITLE: Approval of Demand Register Dated
August 7, 2012
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
August 7, 2012 of which $0.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account#: Amount: Purpose:
None
By adoption of Resolution No. 2012-002, the City of La Quinta has affirmatively elected to be
the Successor Agency of the La Quinta Redevelopment Agency. Pursuant to Health and
Safety Code Section 34177(a), the Successor Agency of the La Quinta Redevelopment
Agency shall continue to make payments required pursuant to an adopted enforceable
obligations payment schedule. The payments above are required pursuant to the
enforceable obligations payments schedule adopted by the La Quinta Redevelopment
Agency on January 17, 2012.
Pursuant to Health and Safety Code Seciton 34173(e), the liability of the SuccessorAgency
of the La Quinta Redevelopment Agency, when acting pursuant to the powers granted under
ABX126, are limited to the extent of the total sum of property tax revenues it receives
pursuant to part 1.85 of ABX126 (e.g., Health and Safety Code Sections 34170 — 374190)
and the value of assets transferred to it as Successor Agency for the dissolved La Quinta
Redevelopment Agency.
-003
Rappectfl Illy submitted,
ju
i—ohn M. Falconer, Finance Director
for.su
k J.,$Pkvbcek, Executive Director
.' 11
7004
CITY /0 HA / FA MEETING DATE:
August 7, 2012
AGENDA CATEGORY:
ITEM TITLE: Adoption of a Resolution Approving a BUSINESS SESSION:
Recognized Obligation Payment Schedule of the CONSENT CALENDAR: 2-
Former La Quinta Redevelopment Agency for the
Period of January 2013 through June 2013 STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt a Resolution approving a Recognized Obligation Payment Schedule for the
period of January 2013 through June 2013; approving the continued
implementation of the Washington Street Apartments Rehabilitation Project;
approving the expenditure of $3,006,360 in 2004 tax-exempt housing bond
proceeds and $15,523,220 in 2011 taxable housing bond proceeds over the
course of the implementation and $2,450,250 of the $3,006,360 in 2004 tax-
exempt bond proceeds during the January - June 2013 ROPS period; and
reconfirming that the housing bond proceeds are "Housing Assets" that are to be
transferred to the Housing Authority pursuant to Health & Safety Code Section
34176(b) in accordance with the ROPS schedule.
FISCAL IMPLICATIONS:
The Recognized Obligation Payment Schedule ("ROPS" - Attachment 1) requests
$6,835,350, plus an additional $205,061 administrative allowance (total of
$7,040,411) allocated from the Redevelopment Property Tax Trust Fund (RPTTF)
to the Successor Agency. The remainder of the enforceable obligations would be
paid from bond proceeds.
BACKGROUND AND OVERVIEW:
Recognized Obligation Payment Schedule
ABx1 26 and the recently -approved State budget trailer bill, AB 1484, govern the
redevelopment unwinding process. Every six months, the Successor Agency and
Oversight Board must approve a ROPS, which is then submitted to the Department
0 0
of Finance (DOF), State Controller's Office, the County Administrative Officer, and
the County Auditor -Controller.
AB 1484 changed the DOF's timeframe to request review of ROPS items from
three business days to five business days. The DOF then has 45 days versus 10
days to make its final determination of the enforceable obligations, the amounts,
and funding sources listed. The Successor Agency would then have five business
days to request additional DOF review and an opportunity to meet and confer on
disputed items.
The Oversight Board will be reviewing this ROPS at its August 8, 2012 meeting.
The ROPS must then be submitted to the above -mentioned entities by September
1, 2012. If the ROPS is submitted late, the city that created the former
redevelopment agency will be subject to a civil fine of $10,000 per day.
The ROPS includes a 3% administrative cost allowance, provided by AB 1484, in
the amount of $205,061.
DOF revised its ROPS form which was circulated on, which is quite different from
the previous form. Rather than list monthly estimated expenditures, the DOF is
only seeking the total estimated expenditures for the six month period. Staff is
completing the "Prior Period Estimated Obligations vs. Actual Payments for January
- June 2012" worksheet. A complete ROPS form will be handed out at the
Successor Agency meeting.
Washington Street Apartments
In June 2012, the Successor Agency and Oversight Board approved the
implementation of the Washington Street Apartments Rehabilitation project. A
revised ROPS was sent to the DOF, listing 2004 tax-exempt and 2011 taxable
housing bond proceeds as the funding source. The DOF did not challenge the
revised ROPS.
However, should the DOF view Washington Street Apartments as a new obligation
on this ROPS, it is recommended the Successor Agency reaffirms its previous
findings via the attached resolution. The Oversight Board will consider a similar
resolution at its August 8, 2012 meeting.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Successor Agency include:
1 Adopt a Resolution approving a Recognized Obligation Payment Schedule for
the period of January 2013 through June 2013; approving the continued
im I plementation of the Washington Street Apartments Rehabilitation Project;
approving the expenditure of $3,006,360 in 2004 tax-exempt housing bond
006
proceeds and $15,523,220 in 2011 taxable housing bond proceeds over the
course of the implementation and $2,450,250 of the $3,006,360 in 2004
tax-exempt bond proceeds during the January - June 2013 ROPS period;
and reconfirming that the housing bond proceeds are "Housing Assets" that
are to be transferred to the Housing Authority pursuant to Health & Safety
Code Section 341 76(b) in accordance with the ROPS schedule; or
2. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
e--Qank J. ek, Executive Director
Attachment: 1 Recognized Obligation Payment Schedule for January
through June 2013
001
RESOLUTION NO. SA 2012 -
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS THE SUCCESSOR AGENGY TO LA QUINTA
REDEVELOPMENT AGENCY 1) ADOPTING A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR
THE PERIOD OF JANUARY 2013 THROUGH JUNE 2013;
2) APPROVING THE CONTINUED IMPLEMENTATION OF
THE WASHINGTON STREET APARTMENTS
REHABILITATION PROJECT, 3) APPROVING THE
EXPENDITURE OF $3,006,360 IN 2004 TAX-EXEMPT
HOUSING BOND PROCEEDS AND $15,523,22.0 OVER
THE COURSE OF IMPLEMENTATION, AND $2,450,250
IN 2004 TAX-EXEMPT HOUSING BOND PROCEEDS
DURING THE JANUARY — JUNE 2013 ROPS PERIOD, 4)
CONFIRMING THAT THE HOUSING BOND PROCEEDS
ARE HOUSING ASSETS THAT ARE TO BE
TRANSFERRED TO THE LA QUINTA HOUSING
AUTHORITY PURSUANT TO HEALTH & SAFETY CODE
SECTION 34176(b) IN ACCORDANCE WITH THE ROPS
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, et seq.) ("CRL"); and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, companion bill ABx1 26 requiring that
each redevelopment agency be dissolved; and
008
Resolution No. SA 2012-
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 2 of 5
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1
27 was 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 ABx1 26; and
WHEREAS, Health and Safety Code Section 34169 requires successor
agencies to prepare and adopt a "Recognized 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 2013
through June 2013; and
WHEREAS, in fulfilling its purpose of increasing, improving, and preserving
the supply of low- and moderate -income housing in the City, in 2008 the La Quinta
Redevelopment Agency ("LORDA") expended tax-exempt bond proceeds to acquire
a 72-unit very low-income senior and disabled adult affordable housing complex
located on the east side of Washington street, at Hidden River Road and commonly
known as the Washington Street Apartments ("WSA"); and
WHEREAS, the LQRDA acquired the WSA with the intent of expending bond
proceeds from a 2004 tax-exempt housing bond issuance to substantially
rehabilitate the development, including the construction of additional units to avoid
the long-term displacement of any of the tenants at the development, for purposes
of preserving this units and affordability of the WSA; and
WHEREAS, the WSA was developed in the 1970s, with assistance from the
U.S. Department of Agriculture, Rural Development Division ("RD"), and is subject
to an outstanding RD loan ("RD Loan"); and
WHEREAS, after an extensive application process, during which the LQRDA
represented and committed to RD that it would complete the planned rehabilitation;
RD permitted the LQRDA to assume the RD Loan; and
WHEREAS, in June 2011, to ensure that the rehabilitation of the WSA would
continue without delay in the event of the dissolution of the LQRDA, the LQRDA
added the Authority to the title of the WSA; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012-002, affirmatively electing to be the "successor agency" to
the LQRDA; and
WHEREAS, on January 17, 2012, the Authority adopted Housing Authority
Resolution No. 2012-02, electing to be the "housing successor" to the LQRDA; and
1. q �-, 009
Resolution No. SA 2012-
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 3 of 5
WHEREAS, on April 18, 2012, the Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency adopted Oversight Board Resolution No.
2012-008 affirming that certain housing properties, including the WSA, are
"housing assets" of the LQRDA, as that term is used in Health and Safety Code
Sections 34176(a) and 34177(g) and approving the transfer of the "housing,
assets" to the Authority; and
WHEREAS, Health and Safety Code Section 34177, which contains a
comprehensive list of successor agency obligations, provides in subdivision (i),
"bond proceeds shall be used for the purposes for which bonds were sold unless
the purposes can no longer be achieved"; and
WHEREAS, the bond documents for the 2004 tax-exempt housing bonds and
2011 taxable housing bonds expressly state that the bonds were issued to finance
low- and moderate -income housing projects benefiting the former LQRDA's project
areas; and
WHEREAS, the purpose for which the bonds were sold may still be achieved,
through the rehabilitation and improvement of the WSA.
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 Recognized 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 Recognized Obligation Payment
Schedule for the period of January 2013 through June 2013. 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 Executive Director to take any action and execute any documents necessary to
implement this Resolution, and further authorizes the Executive Director to forward
the Recognized Obligation Payment Schedule to the Oversight Board.
clio
Resolution No. SA 2012-
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 4 of 5
SECTION 4. The purposes for which the 2004 tax-exempt housing bonds and
2011 taxable housing bonds were issued - to finance low- and moderate -income
housing in the City - can still be achieved. The bond documents, including the
indenture, the official statement, the bond purchase agreement, and other related
documents for the 2004 and 2011 housing bond issuances require that the net
bond proceeds be used for affordable housing.
SECTION 5. The Successor Agency hereby approves the continued implementation
of the WSA rehabilitation project, and consents to the Authority's authorization and
direction to its Executive Director to administer and implement the WSA
rehabilitation project, including, without limitation, entering into the agreements
necessary to affect the same.
SECTION 6. The Successor Agency hereby approves the expenditure of
$3,006,360 in 2004 tax-exempt housing bond proceeds and $15,523,220 in 2011
taxable housing bond proceeds (collectively, the "WSA Bond Proceeds") to fund
the WSA rehabilitation project over the course of the implementation; and
$2,450,250 in 2004 tax-exempt bond proceeds during the January - June 2013
ROPS period.
SECTION 7. The Successor Agency hereby reconfirms that the 2004 tax-exempt
housing bond proceeds and the 2011 taxable housing bond proceeds are "housing
assets" and that the WSA Bond Proceeds are to be transferred to the Authority
pursuant to Health & Safety Code Section 34176(b)(1) for implementation of the
WSA rehabilitation project, in accordance with the ROPS schedule. The Successor
Agency further confirms that the 2004 and 2011 housing bond proceeds are funds
that are encumbered by an enforceable obligation to build or acquire low- and
moderate -income housing as defined in the Community Redevelopment Law, and
therefore the funds meet the definition of the term "Housing asset" set forth in the
Department of Finance's Questions and Answers section of its website, and further
meeting the definition of "Housing asset" proposed by DOF to be codified as Health
& Safety Code Section 34176(d)(2) in the Redevelopment Agencies Dissolution
Clean-up and Liquid Asset Provisions, May Revision.
SECTION 8. 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.
, .. V1. - oil,
Resolution No. SA 2012-
Adoption of Recognized Obligation Payment Schedule
Adopted: August 7, 2012
Page 5 of 5
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 7th of August, 2012, by the following vote, to wit:
AYES:
NOES:
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
012
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