2012 09 18 SACITY AS SUCCESSOR ACANCY
TO THE LAQUINTA REPEVELOPMENTACIENCY
Agendas and staff reports are
available on the City's web page:
www.la-quinta.org
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico I La Quinta, California
Regular Meeting
TUESDAY, SEPTEMBER 18, 2012 AT 4:00 P.M.
Beginning Resolution No. SA 2012-011
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
APPROVAL OF MINUTES OF AUGUST 7, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1 APPROVAL OF DEMAND REGISTERS DATED AUGUST 21, 2012,
SEPTEMBER 4, 2012, AND SEPTEMBER 18, 2012
001
CITY AS SUCCESSOR AGENCY TO RDA 1 SEPTEMBER 18, 2012
2. RECEIVE AND FILE TREASURER'S REPORTS DATED JUNE 30, 2012 AND
JULY 31, 2012
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JUNE
30, 2012 AND JULY 31, 2012
4. APPROVAL OF SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE
PERIOD OF JANUARY 2013 THROUGH JUNE 2013
STUDY SESSION — NONE ,
REPORTS AND INFORMATIONAL ITEMS
1 . OVERSIGHT BOARD MINUTES OF JUNE 6, 2012
ADJOURNMENT
The next regular meeting of the City as Successor Agency to the La Quinta Redevelopment
Agency will be held on October 2, 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, 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 September 14, 2012.
DATED: September 13, 2012
S4"W� ku01�
SUSAN MAYSELS, CWY Clerk
City of La Quinta, California
.0 002
CITY AS SUCCESSOR AGENCY TO RDA 2 SEPTEMBER 18, 2012
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.
003
CITY AS SUCCESSOR AGENCY TO RDA 3 SEPTEMBER 18, 2012
TjAt 4 4 49 W&
CITY / �A V HA / FA MEETING DATE: August 21, 2012
ITEM TITLE: Approval of Demand Register Dated
August 21, 2012
RECOMMENDED ACTION:
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 21, 2012 of which $302,587.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account #: Amount: Purpose:
Torre Nissan
417-9002-702.80-05
$55,534.00
Disbursement Req
Torre Nissan
417-9002-702.80-05
$247,053.00
Disbursement Req
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 — 34190) and the value
oo4
of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment
Agency.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
None.
ALTERNATIVES:
None.
Respectfully submitted,
ggA�4= a�l
Robbeyrf Bird, Finance Director
1., 1; 005
MEETING DATE: September 4,2012
ITEM TITLE: Approval of Demand Register Dated
September 4, 2012
RECOMMENDED ACTION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: I
STUDY SESSION:
PUBLIC HEARING:
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
September 4, 2012 of which $314,712.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account#: Amount: Purpose:
Torre Nissan
417-9002-702.80-05
$157,356.00
Disbursement Req
Torre Nissan
417-9002-702.80-05
$157,356.00
Disbursement Req
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
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 — 34190) and the value
- 10 006
of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment
Agency.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
None.
ALTERNATIVES:
None.
Respectfully submitted,
Robbeyk Bird, Finance Director
007
MEETING DATE: September 18, 2012
ITEM TITLE: Approval of Demand Register Dated
September 18, 2012
RECOMMENDED ACTION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: A -
STUDY SESSION:
PuRuTr HEARING -
It is recommended the Successor Agency of the La Quinta Redevelopment Agency:
Receive and File the Demand Register Dated
September 18, 2012 of which $18,505.00
Represents Successor Agency Expenditures as detailed below:
Vendor: Account #: Amount: Purpose:
US Bank
237-9001-702.32-07
$3,025.00
Series'98 Admn
US Bank
237-9001-702.32-07
$1,530.00
Series'02 Admn
US Bank
237-9001-702.32-07
$1,650.00
Series'98PA1 Admn
US Bank
237-9001-702.32-07
$2,875.00
Series'04 Admn
Lance, Soil & Lunghard
237-9001-702.32-07
$9,425.00
Year -End Audit
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
M$11
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
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 — 34190) and the value
of assets transferred to it as Successor Agency for the dissolved La Quinta Redevelopment
Agency.
EXECUTIVE SUMMARY:
None.
FISCAL IMPACT:
None.
BACKGROUNDIANALYSIS:
None.
ALTERNATIVES:
None.
Respectfully submitted,
e"I"*nz & J
RobbeyriBird, Finance Director
1. 1 - 009
AGENDA CATEGORY:
COUNCILS;UHA/HA MEETING DATE: September 18, 2012 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of Treasurer's CONSENT CALENDAR:
Reports as of June 30, 2012 and July 31, 2012
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
It is recommended the Succesor Agency to the La Quinta Redevelopment Agency
Board:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
- 14 - 010
oil A,
AGENDA CATEGORY:
CITIQUA/FA MEETING DATE: September 18, 2012 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of Revenue CONSENT CALENDAR: 3-
and Expenditure Report dated June 30, 2012 and July
31,2012 STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Receive and File
EXECUTIVE SUMMARY:
Monthly and year-to-date revenues and expenditures of the Successor Agency to the
La Quinta Redevelopment Agency.
FISCAL IMPACT:
None.
BACKGROUND/ANALYSIS:
Receive and File Transmittal of the June 30, 2012 and July 31, 2012 Statements of
Revenue and Expenditures, for the Successor Agency to the La Quinta Redevelopment
Agency.
ALTERNATIVES:
None.
Respectfully submitted,
Robbeyn%ird, Finance Director
Attachments: 1 . Revenue and Expenditures Report for June 30, 2012
2. Revenue and Expenditures Report for July 31, 2012
C11
ATTACHMENT 1
SUCCESSOR AGENCY
REVENUE SUMMARY
PROJECT AREA NO. I Admin (237)
County of Riveirside
Peeled Cash Alfocated Interest
Non Nlocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Adanin (238)
County of Riverside
Poci Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - ADMIN
PROJECT AREA NO. i Program 1231)
County of Riverside
Pooled Cash Allocated Interest
Non Aiacated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO- 2 Progiram (2321
County of Riverside
Pooled Cash Altocated Interest
Non Nlocatedl interest
Transfers In
TOTAL PA 2
0710112011 - 061302012
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
0.00
0,00
OL(I
0.1m%
0.0
(62,09)
62�09
0.000%
0�00
0.00
0.00
0.1�0%
(loo
554,085.49
(554.085.49)
0,000%
0,00
554,023.,tU
�5�1,023 40)
0.w0%6
0.0
G�w
0,00
0�wo%
0.00
0,00
o.W
0�0,30%
000
(14,67)
14W
0000%
0�00
324,2W,62
f324,260,62)
0,000%
0�00
324,24575
(324.245.7SI
0000%
0.w0%
39,110.0 13.231.246.N (13JW,IW�00) 33030,850%
0,00 11.320�14 (11.320,14) 0000%
0.00 0.0 000 0,1300%
8,976,M4,00 4,949,851.15 4,026,412�85 55.140%
9,015,374.W 18.192,417,29 (9,177,043,29) 201 7W%
84,090,00
0,00
84,OW 00
0.000%
0,00
65,20
(6520)
0�000%
0,00
0.00
000
0.00%
5�. 17&00
44.776.13
510.401.87
&070%
639.268,00
44.841 33
5N,426 67
7.010%
TOTAL SUCCESSOR AGENCY - PROGRAM 9,654,1�2.00 18,237,258.62 (8,582.616,62) 18&�%
TOTAL SUCCESSOR AGENCY 9,654,64LO 19.115,527 77 (9,4W.885 77) 1979%%
-, it 012
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO. I
LOW/MODERATE TAX FUND:
Tax Increment
Allocated Interest
Non Allocated Interest
Miscellaneous revenue
Non Allocated Interest
Home Sales Proceeds
Sale of Land
Smer Subsidy Reimbursements
Rehabilitation Loari Repayments
2nd Trust Used Repayment
Williams Note Payment
Transfer In
TOTAL LOWINOD TAX
DEBT SERVICE FUND:
Tax Increment
Aloc�ded Interest
Non Allocated Interest
Interest - County Leon
Interest Advance Proceeds
Transfers In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
Non Allocated Interest
Developer Agreement Funding
Sale of Land Proceeds
Rental Income
Litigation Proceeds
Transfers 1.
TOTAL CAPITAL IMPROVEMENT
07101M011 - 04513012011!
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
4,123,224 00
L123.224.39
(0.39)
IN.wo%
44,600.W
13,92808
210,671 S2
31.2W%
0.00
60848
(608.(58)
0�000%
0�00
1.226.22
(1.226.22)
0.00(y%
0�w
O.w
OZO
0.00%
0.w
000
0,00
0.000%
0.00
0,00
0.00
0.000%
O'N
1,46784
11,467,84)
0.0w%
0.00
0,00
0�w
0�13D(l%
000
O.DO
O'N
0,"%
0,00
000
0,00
0.000%
6,535.056,00
6,535.05&00
0,00
100 "%
10,702,880,00
10 675,511 21
27 36&79
99740%
16,505,087.00
16.505,087.35
(0.35)
10.000%
3,000,00
(13.12295)
16,122�95
437A30%
0.00
000
0.00
0.0w%
0.01)
0.00
0.00
0.000%
000
0.w
0,00
0.000%
15,004,9T6.0
9,562,320 23
5,522.655.77
63.390%
31,593,06100
26.054.2&.63
5,538j78 37
82470%
25,7000
(6.278.18)
31,978,18
.24430%
18,00000
10.313,04
8,4B&96
�1,860%
0,00
000
0,00
0.0X)%
0.00
0.00
0,00
O.ODO%
0,00
O.w
000
0�000%
0�00
000
0�00
0.000%
5.000,000,00
47.130.W
4,952.870,00
0940%
5.0,114.�0,00
51,164.86
4,993,3M.14
1.010%
2011 TAXABLE HOUSING BOND FUND: (249)
Pealed Cash Allocated Interest
000
0A0
0�0(1
0.000%
Non Allocated Inuareal
5.w0.00
I0.980S2
(5�980 82)
219.620%
Developer Agreement Funding
0,00
0,00
().(XI
0 w0%
Sale of Land Phiceeds
0�00
000
0,00
0�0(0%
Rental Incorne
000
0 w
0,00
0,000%
Litigation Proceeds
0.00
0�00
0,00
O.D00%
Transfers In
0,00
0,00
0.00
0.000%
TOTAL 2011 TAXABLE HOUSING BOND
5,000,00
013
SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
REVENUE SUMMARY
PROJECT AREA NO- 2�
LOWM*ODERATE TAX FUND:
Tax Incherrient
Allorated Interest
Non Allo:zted Interest
Developer funding
2nd Trust Deed Repayment
Sale of Land
Transfer in
TOTAL LOWIMOD TAX
2M LOWIMODERATE BOND FUND:
Allocated Interest
Honne Sale Pho;eeds
Non Alloi:ated Interest
Transfer In
TOTAL LOWIMOD BOND
DEBT SERVICE FUND:
Tax Increirent
Allo,;ated Interest
Non Allditej Interest
Interest Advance Prooseds
Transfer In
TOTAILDEBTSERVCIE
CAPITAL IMPROVEMENT FUND:
Allocatecl Interest
Non Allocated Interest
Misc Revenue
Sale of land
Transfens in
TOTAL CAPITAL IMPROVEMENT
07MI1201 I - WV3=0112
ADJUSTED REMAINING %
BUDGET RECEIVED 13UDGET RECEIVED
2,341.402.00
2�UI.482,3ul
(0.:1,1)
100,000%
w 800.00
50,193�9,t
10,606,06
82560%
0.00
0,01)
0.0
. 0.000%
0.0
0,00
0�00
0.000%
0.0
8,744,99
(8.744.99)
0�0w%
0A0
0.00
0.00
0.000%
1,651,794,00
1,651.7 .13
(0.13)
10 �000%
4.05,f,076,00
4,052.215.40
1,860m
99 950%
om
0,00
0.00
0.000%
0.00
0,00
0,00
0.000%
500.00
1.299Z0
(7ww)
259�930%
0,00
0.00
0�00
0 "%
500,00
1,299,50
(799.501
�S§ 900%
9,365,929.00
9,M5,929.37
(0.37)
100.000%
200gi)
(15,788,12)
15,SN.12
-78N.060%
0.00
911,89
(911.89)
0.000%
0A0
0,00
0.00
0.000%
558,747.00
5511,746AII
0,12
100,()00%
______�LV24�076 00
%909,800�02
15.075.98
99.8w%
000
2.008.27
(2.008.27)
0.000%
76.802g0
65,076.81
11.725.19
$4.730%
0�00
om
000
0,000%
0�00
0,00
0,00
0.000%
i.650.000go
288.5wbo
1,361,420.00
17.490%
1T726,1102,00
355,665,08
1,371,136 92
-20.600%
2011 TA)(ABLE NON41OUSING BOND FUND: (417)
Piddled Cash Allox�ated Interest
0,00
0.00
0,00
0.000%
Non All.led Interest
0,00
1,38,00
(168.0)
omo%
Developer Agreethent Funding
O.m
0.00
om
0,000%
Sale of Land Prooseds
000
000
0go
0�000%
Rental Innoon,e
0�w
000
0,00
0.000%
Litigation Prooseds
om
0 00
000
0.000%
Transfers In
0,00
000
0.00
0.000%
TOTAL 2011 TiU(ABLE NON-14OUSING BOND
0 DO
16860
-(16800)
0000%
014
SUCCESSOR AGENCY ADJUSTED W3M2 REMARING
EXPENDITURE SUMMARY BUDGET �ENDITURES ENCUMBERED BUDGET
237 PROJECTAREANCIA,
SERVICES
14D.568W
1M,921,12
ow
379,1688
REIMBURSEMENT TO GEN FUN[
41BIUS.W
451,102.28
ow
(32,187,28)
TRANSFERS OUT
a w
0,00
0 w
000
TOTAL PA I . Adftii
�"9163 W
5
238 PROJECT AREA NO. 2:
SERVICES
69.362.W
25 W3 91
0 w
44,37&09
REIMBURSEMENT TO GEN FUN[
2M.3XW
n2 � 62
0 w
(15,67462)
TRANSFERS OUT
77,M7 00
77237,22
0 w
(0221
TOTAL PA 2 - AdiWn
-------
W24575
TOTAL SUCCESSOR AGENCY - All.
912.132,00
231 PROJECT AREA N0.1
SERVICES
W.� 00
60.468,78
0 w
(24,M8 78)
BOND PRINCIPAL
0 N
0 w
0 w
0 w
BONDINTEREST
0 w
0 w
0 w
000
REIMBURSEMENT TO GEN FUNL
2,710 W
0 w
0 w
2.710 W
TRANSFERS OUT
12 632 517 W
12.632,516 77
0 w
0.23
TOTAL PA I - �gmm
232 PROJECTAREANO.2-
SERVICES
51 M,00
33,523 M
a w
18,07667
BOND PRINCIPAL
BOND INTEREST
0 N
0 w
O,W
0 w
REIMBURSEMENT TO GEN FUNC
32.490,0
11,318 W
0 w
21,1720
TRANSFERS OUT
0 w
0 w
O'N
O,W
TOTAL PA 2 - P.g..
KOWN
TOTAL SUCCESSOR AGENCY -Progmm=,
bfIfW
12,7
TOTAL SUCCESSOR AGENCY
015
SUCCI�SSORAGIEMCYTOTHE
ADJUSTED
W3W201 2
REM,kINING
� QUWA REDEVELOPMENT AGENCY
BUDGET
EXPE14DITURES
ENCUMBERED
BUDGET
EXPENDITURE SUMNMIBY
PROJECT MEA NO. I I
LOWIMODEMTE TAX FUND:
SERVICES
sm.amm
275,166.51
DOD
247,683.49
BOND PRINCIPAL
t635,75M
1,6M,H5�W
0.00
o.w
BOND INTEREST
3,80.670M
3,8M,627,49
000
4251
21,d MUST DEED PROGRAM
520," W
al.(M) w
Goo
439,M,W
HABITAT FOR HUMANITY
�Aww
5.IWW
0,w
295,030 W
LAND ACQUISITION
0 w
om
000
0 w
LOW MOD HOUSING PROJECTS
0 w
om
000
0 w
FORECLOSURE
w,moo
a w
000
�.wom
REIMBURSEMENT TO GEN FUN[
011,741 W
413,� D5
0 m
48,lW94
TRANSFERS OUT
6,101,691 W
':U'3123
0 w
2,329,190 74
TOTIU- LOWMOD TM
10 !g 321
SERVICES
429212 00
428,52430
o.w
667.70
BONDPRINCIPAL
3.113 575 00
3,113,575 W
0 w
0 w
BONDINTEREST
6,675 368,00
6.675.3136 76
0.0
1 �24
PASS THROUGH PAYMENTS
9 9U,782 26
9,9U,777,83
om
4,43
ERAF SHIFT
0 w
om
0 w
0 w
TRANSFERS OUT
13,976.264 W
0 m
76,263 91
TOT0IU. DEBT SERVICE
C"ITIIU- IMPROVEMENT FUND:
SERVICES
205,7W.W
62.Wl�
0 w
142.79756
REIMBURSEMENT TO GEN FUN[
271.985W
213.73921
0 w
U1.245 79
249 2011 TII=BLE HOUSING BOINI
SERVICES 1 I'M w 8,678M 000 2,32138
TRANSFERS OUT 25.526.567.W 1':7" 37 0 MW 25,514.M)IR3
TOT� 2041 TMIIkBLE HOUSING BOND 20 43 n 0 21
016
�l
SUCCESSOR AGENCY TO ME ADJUSTED "120112 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO, 2,
LOWIMODERATE TAX FUND:
SERVICES
�5.3WW
157.n2.64
a w
167."7 W
BOND PRINCIPAL
595,650.W
595,65(l W
0 w
om
BONDINTEREST
1.872M2 W
1.8n,U4 SI
0 w
(42 5,1)
2ND TRUST DEEDS
a w
0 w
OM
0 w
LOW MOD HOUSING PROJECTS
3,= W
O'N
0 w
3,�,00
FORECLOSURE ACQUISITION
4%=00
om
a w
4W," 00
REIMBURSEMENT TO GEN FUN[
261.620,W
234.5" 62
a w
27,07538
TRANSFERS OUT
12 M 274 W
D.;N,43519 48
0 w
2 97%954 52
TOTAL LOWIMOD TAX
'y T R
20M LOWINIODERATE BOND FUND
HOUSING PROGRAMS
0 w
0 w
0 w
0 w
LAND
0 w
a w
000
OM
TRANSFERS OUT
--nuTz
3.307.155 00
30
2997.693.56
TOTAL LOWMOD BOND
w-
&M�
2
DEBT SERVICE FUND:
SERVICES
241,542 W
O'N
4,52520
BOND PRINCIPAL
380.0XIM
In,omm
om
250,0X),W
BOND INTEREST
633,U3,W
633,IPI3 95
Dw
(0.95)
PASS THROUGH PAYMENTS
8,215,(X3 00
8,019,032 65
0 w
1%,01035
ERAF SHIFT
0 w
0 w
000
000
TRANSFERS OUT
2.205.178,W
268,581621
916.59679
TOTAL DEBT SERME —�—TF686�
- -
00 MOD
21.
CAPITAL IMPROVEMENT FUND
M
SERVICES
99 845 00
W,W5,88
om
39,17912
CAPITAL
0 w
0 w
0 w
a w
REIMBURSEMENT TO GEN FUNC
91,592 W
63,074,11
0 w
28.51789
TRANSFERS OUT
17%�W
"
36�24"
om
1,41 "4 IUI
TOTALCAPITALIMPROVEMENT
1.980.381 W
470 110
, STS:NT g
417 2011 RDA 2 TAXABLE BOND FUNO;J417)
SERVICES
11.5XIN
8.49131
000
3.W8 69
ECONOMIC DEVELOPMENT
1.5KOX0.00
7033W,56
0 w
753."g
TRANSFERS OUT
2.422 9,16 W
2.65982
0 w
2'
2 42':9
TOTAL RDA NO. 2 TAXABLE BOND
3 934 4413 N
(b/,Wl 69
Go
3.179 P5T
.'14 oil
ATTACHMENT 2
SUCCESSOR AGENCY
REVENUE SUMMARY
PROJECT AREA NO. I Admin (237)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Inderest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Admin (238)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfens In
TOTAL PA 2
TOTAL SUCCESSOR AGENCY - ADMIN
PROJECT AREA NO. I Project (231)
County at Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA I
PROJECT AREA NO. 2 Project (232)
County of Riverside
Pooled Cash Allocated Interest
Non Allocated Interest
Transfers In
TOTAL PA 2
0710112012 - 07131f20112
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
476,656,00
0,00
476.856.00
0.000%
0.00
0.00
0.00
0.000%
0.00
0.00
0.00
0.000%
15,400.00
0.00
15,400.00
0.000%
492,056.00
0.00
492,056.00
0.000%
323,939�00
0.00
323,939.00
0.0001%
0.00
0.00
0.00
0.000%
0.00
0.00
O.DO
0.000%
19,500.00
0.00
19,500.00
0.000%
343,439.00
0.00
343,439.00
0.000%
835,495.00 000 835,495.00 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%
15,400.00
0.00
15,400.00
0,000%
15,400.00
0.00
15,400.00
0.01)0%
192,876.00
0.00
192,876.00
0,000%
0.00
0.00
0.00
0.000%
0.00
0,00
0.00
a000%
19,500m
000
19,500.00
0�1)00%
212.37&GO
0.00
212,376.00
0.000%
TOTAL SUCCESSOR AGENCY - PROGRAM 227,776.00 0.00 227,776.00 0.000%
TOTAL SUCCESSOR AGENCY 1.063.271.00 0�00 1.063.271.00 omm
018
El
SUCCESSOR AGENCY TO THE
0710112012 - 0713112012
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA No. V
LOWIMODERATE TAX FUND:
County of Riverside
6,227,990.00
om
6.227.990.00
0A)oo./.
Allocated Interest
0.00
0.00
0.00
ob00%
Non Allocated Interest
0.00
236.29
(236.29)
0.000%
Miscellaneous revenue
000
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0�00
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOWIMOD TAX
6,227,990.00
236.29
6,227,753�71
0.000%
DEBT SERVICE FUND:
County of Riverside
10,273.472.00
0.00
10,273,472.00
O.OGO%
Allocated Interest
0.00
om
0.00
0.000%
Non Allocated Interest
0�00
51.93
(51.93)
0.000%
Transfers In
0.00
0.00
0.00
0.000%
TOTAL DEBT SERVICE
10,273,472.00
51.93
10.273,420�07
0.000%
CAPITAL IMPROVEMENT FUND
Pooled Cash Allocated Interest
0.00
0�00
0.00
0,000%
Non Allocated Interest
15,400�00
837.75
14,562,25
5.440%
Developer Agreement Funding
0.00
om
0�00
0.000%
Sale of Land Proceeds
0.00
0.00
0.00
0.000%
Rental Inconne
0�00
0.00
0.00
0,000%
Litigation Proceeds
0,00
0,00
0�00
0�000%
Transient In
0.00
0.00
0�00
0�000%
TOTAL CAPITAL IMPROVEMENT
15.400.00
83T75
14,562,25
5A40%
2011 TAXABLE HOUSING BOND FUND: (249)
Pooled Cash Allocated Interest
0.00
0.00
0�00
0.000%
Non Allocated Interest
10,00000
1.977�02
8.022.98
19.770%
Developer Agreement Funding
0.00
0�00
om
0.000%
Sale of Land Proceeds
0.00
0.00
0.00
0.000%
Rental Income
0.00
0.00
0.00
0.000%
Litigation Proceeds
0.00
0.00
0,00
0�000%
Trermlers In
om
0,00
0.00
0.000%
TOTAL 2011 TAXABLE HOUSING BOND
10.000�00
1.977,02
8,022,98
19,770%
-. 10 019
SUCCESSOR AGENCY TO THE
0710112012 - 0713112012
LA QUINTA REDEVELOPMENT AGENCY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO. 2,
LOWIMODERATE TAX FUND:
County of Riverside
2,665,855.00
0�00
2,665,855�00
0.000%
Adlocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
13.78
(13.78)
0.000%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LOWIMOD TAX
2,665,855�00
1178
2.665,841.22
0�000%
2004 LOWIMODERATE BOND FUND:
Allocated Interest
0.00
0.00
0.00
0.000%
Horne Sale Proceeds
0.00
0.00
0.00
O.ODO%
Non Allocated Interest
0.00
289.74
(289.74)
0.000%
Transfer In
0.00
0.00
0.00
0�000%
TOTAL LOWIMOD BOND
0.00
289.74
(289.74)
0�00004
DEBT SERVICE FUND:
County of Riverside
941.M.00
0.00
941,946.00
0.000%
Allocated Interest
0.00
0.00
0.00
0.000%
Non AAocated Interest
O�Do
72.38
(72.38)
O�G(10%
Interest Advance Proceeds
0.00
0.00
0.00
0.000%
Transfer In
0.00
0�00
0.00
0.000%
TOTAL DEBT SERVICE
941,946.00
72.38
941,873.62
0.010%
CAPITAL IMPROVEMENT FUND:
Allocated Interest
0.00
0.00
0oo
0.000%
Non Allocated Interest
19,500.00
0.00
19,500,00
0.000%
Misc Revenue
0.00
0.00
0.00
0.000%
Sale of land
om
0�00
0�00
0.000%
Transf� In
0.00
0�00
0.00
0.000%
TOTAL CAPITAL IMPROVEMENT
19,500.00
0.00
19,500.00
0.000%
2011 TAXABLE NON -HOUSING BOND FUND: (417)
Pooled Gash Allocated Interest
0.00
oko
0�00
0.000%
Non Allocated Interest
0.00
137.00
(137.00)
0.000%
Developer Ag�rnent Funding
0.00
om
om
0.000%
Sale of Land Proceeds
0.00
0.00
0.00
0.000%
Rental Inicome
0.00
0.00
0.00
O.OGO%
Litigation Proceeds
0�00
om
0.00
0.000%
Transfers In
0.00
0.00
0�00
aG00%
TOTAL 20ill TAXA13LE NON -HOUSING BOND
0,00
13TOO
J13TO
,14 -, 020
irl,
SUCCESSORAGENCY ADJUSTED 01=100 REMAINING
EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET
237 PROJECT AREA NO. 1,
SERVICES 184,695.00 0�00 0.00 164.595.DD
REIMBURSEMENT TO GEN FUNE 307.461.00 25,622.00 0.00 281.939�00
TRANSFERS OUT 0.00 0�00 0.00 0�00
TOTAL PA I - Admin 492,05600 zt,�Zm u-m ---M�4u.w
238 PROJECT AREA NO. 2,
SERVICES
192.000.00
0.00
0.00
192,000.00
REIMBURSEMENT TO GEN FUNC
151.439.00
12,620.00
0.00
138.819.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL PA 2 - Admin
TOTAL SUCCESSOR AGENCY - Admin
835,4W00
38.24z.00
0.00 ----797,MTW
231 PROJECT AREA NO. 1,
SERVICES
5.499,961.00
0.00
0.00
5,499.961.00
BOND PRINCIPAL
0.00
O.D0
Doo
0.00
BONDINTEREST
oko
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUNE
0.00
0.00
0.00
0.00
TRANSFERS OUT
15,400DO
om
0,00
"Agg
TOTAL PA i - Pmgmm
5.515.361.DD
232 PROJECT AREA NO- 2,
SERVICES
om
oko
0�00
0.00
BOND PRINCIPAL
SONDINTEREST
obo
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUN[
0,00
OZO
0.00
0.00
TRANSFERS OUT
212,376.00
0.00
0.00
..
TOTAL PA 2 - Prognm
z12,3t,100
212:462
TOTAL SUCCESSOR AGENCY - Pmgmm 5,727.73T00 0.00 5,727,737.W
TOTAL SUCCESSOR AGENCY 6,�3,232.m W.242.W 0.00
11
SUCCESSOR AGENCY TO THE ADJUSTED 11011900 REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 1,
LOWIMODERATE TAX FUND.
SERVICES
&00
0.00
0.00
0.00
BOND PRINCIPAL
2,071.650.00
0.00
0.00
2,071,650.00
BONDINTEREST
4,156,340.00
0.00
0.00
4,156,340.00
REIMBURSEMENT TO GEN FUNE
0.00
0.00
0.00
0.00
TRANSFERS OUT
4
4:a!&75
0.00
102!IM17
TOTAL LOWIMOD TAX
loigiNm
4 5
0.00
SERVlCES
16.600.00
1,530.00
0.00
15,070.00
BOND PRINCIPAL
3,765,000.00
0.00
0.00
3,765,00D00
BONDINTEREST
6.491.872.00
0.00
0.00
6,491.872.00
TRANSFERS OUT
0�00
0.00
0.00
0.00
TOTAL DEBT SERVICE
10.273,472.00
I,5w.w
DOD
CAPITAL IMPROVEMENT FUND:
SERVICES
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUN[
0.00
0.00
0.00
0.00
249 20il TAXABLE HOUSING BOND(249)
SERVICES 0�00 O.DD 0.00 DOD
TRANSFERS OUT 211�44:0122�1 0.00 0.00 25.5144!Q�l
TOTAL 2011 TAXABLE HOUSING BOND 5 W U,W ON W
022
12
SUCCESSOR AGENCY TO THE ADJUSTED U0119GO REMAINING
LA QUINTA REDEVELOPMENT AGENCY BUDGET EXPENDITURES ENCUMBERED BUDGET
EXPENDITURE SUMMARY
PROJECT AREA NO. 2:
LOWIMODERATE TAX FUND:
SERVICES
obo
0,00
0.00
0.00
BOND PRINCIPAL
623.700,00
0.00
obo
623,700.00
BONDINTEREST
2.042.155.00
0.00
0.00
2,042.155.00
REIMBURSEMENT TO GEN FUN[
0.00
0.00
0.00
0.00
TRANSFERS OUT
11.421:al
1:5322gl:11-11
0.00
TOTAL LOWIMOD TAX
'.. 95 W
13
;WI!01212�gW
7 7
248 2004 LOWIMODERATE BOND FUND
HOUSING PROGRAMS
0.00
0.00
0.00
0.00
LAND
Doo
0,00
0.00
GDD
TRANSFERS OUT
2.997,694.00
0.00
GDO
2:glgl7
TOTAL LOWIMOD BOND
2,997,694.00
0.00
0.00
7 Bg �l
2 :1144*
DEBT SERVICE FUND:
SERVICES
OLD
15m.00
0.00
(1,5w.00)
BOND PRINCIPAL
175,000bO
0.00
Doo
17SOD0.00
BONDINTEREST
757.64&G0
0.00
0.00
757.646.00
TRANSFERS OUT
0.00
0.00
0.00
0.00
TOTAL DEBT SERVICE
932,646.00
13UTUT-
--U.m
931,146,00
CAPITAL IMPROVEMENT FUND:
SERVICES
0,00
0.00
obo
0,00
CAPITAL
0.00
0.00
0.00
0.00
REIMBURSEMENT TO GEN FUN[
0.00
Doo
ODD
0.00
TRANSFERS OUT
19,5w,w
obo
0.00
TOTAL CAPITAL IMPROVEMENT
19,500,00
0.00
0.00
417 20il RDA 2 TAXABLE BOND FUND-.(417)
SERVICES obo 0.00 0.00 Doo
ECONOMIC DEVELOPMENT 753,649b) 55,534.00 0.00 698,115.00
TRANSFERS OUT 2.399.78&00 0.00 Doo 2.39'
TOTAL RDA NO. 2 TAXABLE BOND 3,153,435.00 55.534.00 0.00 U1,70!'M
023
13
CITY OHA/ FA MEETING DATE: September 18, 2012
ITEM TITLE: Approval of Successor Agency
Administrative Budget for the Period of January 2013
through June 2013
RECOMMENDED ACTION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve the Successor Agency Administrative Budget for the period of January
2013 through June 2013.
EXECUTIVE SUMMARY:
Per ABx1 26, the Successor Agency will be reimbursed for costs related to
Successor Agency ("SA") and Oversight Board administration ("Administrative
Allowance"). The Administrative Allowance, funded from property taxes, is capped
at 3% of the total amount listed on the Recognized Obligation Payment Schedules
("ROPS"). ABx1 26 requires the Successor Agency and Oversight Board to review
and approve the proposed administrative budget (Attachment 1).
FISCAL IMPACT:
For this time period, the administrative allowance is $205,061. However, this total
is subject to change based on review and approval by the Oversight Board, and
review by the State Department of Finance (DOF).
BACKGROUND/ANALYSIS:
ABx1 26, the "Dissolution Act," provides an administrative budget for the
successor agencies to carry out wind -down activities of the former redevelopment
agencies and to administer oversight boards. The Dissolution Act requires the
successor agencies to prepare an administrative budget every six months.
. I - 024
The proposed budget includes staff time required to carry out Successor Agency
and Oversight Board activities and administration, the cost of IT support, supplies,
printing of agendas and agenda packets, posting, and legal and consulting costs. It
also includes $15,000 for audits. AB 1484 included a new requirement for a "due
diligence review" to determine the unobligated balances available for transfer to
taxing entities. The City's auditor, Lance, Soll and Lunghard (LSQ, will perform the
review at a cost of $20,000. ($5,000 is available from the July -December 2012
administrative budget to fully fund this cost.)
Once the Successor Agency reviews and approves the Administrative Budget, it
must be considered and approved by the Oversight Board. This will take place at
the October 3, 2012 Oversight Board meeting.
While the Dissolution Act does not require administrative budgets be submitted to
the DOF, the DOF does review oversight board actions. Therefore, the DOF may
review the Administrative Budget and could question the budget. However, the
Administrative Budget has been prepared pursuant to the guidance staff has
received from DOF for past budgets.
ALTERNATIVES:
1 . Provide staff with alternative direction.
Respectfully submitted,
'�-E*elb ell
Eco=evelopment)Housing Manager
Attachment: 1 Draft Successor Agency Administrative Budget, January
2013 through June 2013
!1 025
Attachment 1
SUCCESSOR AGENCY1OVERSIGHT BOARD
JAN-JUNE 2013
ADMINISTRATIVE BUDGET
PERSONNEL
$125,416
Includes base salary plus benefits.
Successor Agency Administration
$81,520
Oversight Board Administration
$43,896
SUPPLIES & SERVICES
CONTRACT SERVICES
$60,225
This account provides for legal, Consulting, and audit services,
insurance, mileage reimbursement, plus a portion of
League of California Cities dues related to technical
assistance and training for implementation of ABx1 26 and
AS 1484
F
Audits as required by ABx1 26 and AB 1484
$15,000
Dues/SeminarsfWebinars related to ASO 26 and AS 1484
$1,867
Mileage reimbursement for travel to seminars; use of personat
$854
vehicles for Successor Agency/Oversight Board business
Legal Services for Successor Agency
$25.561
Consulting Services for Sumessor Agency
$6,000
Insurance
$11,943
]SUPPLIES AND PUBLICATIONS
$773
This account provi es for various office supplies and publics
ions
to be used by SA and OB staff and board members
Successor Agency Supplies
$386
Oversight Board Supplies
$200
Successor Agency/Oversight Board Publications
$187
PRINTINGMAILINGIADVERTISING
$1,048
This account provides for required mailings, agenda printing,
and legal advertising
Printing
$191
Legal Advertising and Mailing
$8571
INFORMATION TECHNOLOGY
$4,931
This amount provides for annual replacement Charges for
information technology items such as computers, printers,
and computer related items attributable to $A/OB; and
support(hosting for SAJOB web pages, which am required
by ABx1 26 and AB 1484
$4,931
OFFICE AND EQUIPMENT
$12,668
This account provides for office space rental ind equipment
usage in City Hall
Rent
$11,100
Equipment Usage
$1,568
TOTAL ADMINISTRATIVE BUDGET
$206,061
$205,0611
FUNDING SOURCES:
13% ADMINIS I � lIV1, ALILUWAN�1,
0 2 6
Reports & Informational Item No.
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
MINUTES
Regular Meeting
WEDNESDAY, JUNE 6, 2012 at 2:00 P.M.
ROLL CALL - Present: Board Members Ellis, Marshall, Maysels, McDaniel,
Nelson, Osborne and Chairperson Pefia
Absent: None.
CONFIRMATION OF AGENDA - Confirmed
PUBLIC COMMENT - None
- None
APPROVAL OF MINUTES
1 A motion was made by Board Members Osborne/Nelson to approve the
minutes from the May 2, 2012 Oversight Board meeting as amended.
Motion passed unanimously.
WRITTEN COMMUNICATIONS
Staff indicated that at the May 15, 2012 Successor Agency meeting, while
reviewing the Oversight Board minutes from April 18, 2012, Council Member
Franklin pointed out that on page 4 of the minutes the reference to La Quinta
Park should be corrected to read La Quinta Community Park.
CONSENT ITEMS - None
BUSINESS ITEMS
1 Consideration of a Resolution Approving the Implementation of the
Washington Street Apartment Rehabilitation Project, Approving the Use of
2004 Tax -Exempt Housing Bond Proceeds and 2011 Taxable Housing Bond
Proceeds to Fund the Project, Confirming the Status of the Housing Bond
Proceeds as Housing Assets Transferable to the La Quinta Housing
Authority, and Amending the Recognized Obligation Payment Schedule to
Reflect the Project and Payments.
1 027
Chairperson Pefia asked staff if there was a conflict of interest for Frank
Spevacek, City of La Quinta's new City Manager since his firm, RSG, Inc.,
was contracted with the City and worked on the Washington Street
Apartments project.
Kathy Jenson, Rutan & Tucker, Counsel for the Successor Agency, indicated
that there was no conflict since RSG's contracts with the City of La Quinta
have been terminated and City Manager Spevacek resigned from RSG when
he became the new City Manager.
Staff presented staff report.
Attorney Jenson explained that two sources of bond proceeds are being
proposed — an older bond issuance that was issued in 2004 that has largely
been expended over the years but there is still a little over $3,000,000 left.
Those are tax-exempt bond proceeds that have be used consistent with tax-
exempt bond proceed purposes. All documentation specifies the use of
these funds for affordable housing in Project Areas 1 and 2. Attorney
Jenson's legal position, as Counsel to the Housing Authority and to the
Successor Agency, is that the obligations in the bond documents are in and
of themselves, enforceable obligations to expend the bond proceeds
consistent with the bond documents and the commitments made to the bond
holders. The same is true with 2011 bond issuance with the exception that
those bonds are taxable bonds. There is no covenant with regard to making
sure they are not used for something that would trigger the interest to
become taxable since it already is taxable income — they are different than
the 2004 bonds yet they still have the same housing commitment that the
2004 bonds do - restricted funds.
AB26 has two provisions relevant to this issue — there is the provision that
states the bonds are supposed to be used for the purpose for which they are
issued if it is still capable of being accomplished. The law sets out in
Section 34176 that all housing assets, with the exception of the low- and
moderate -income housing fund, can go to the housing successor. The
housing successor in this case is the La Quinta Housing Authority. These
are not low- and moderate -income housing funds. As counsel for the
Successor Agency and Housing Authority, it is Attorney Jenson's opinion
that the bonds are housing assets that are transferable to the Housing
Authority and can still be used for the purpose for which they were issued.
Attorney Jenson said that new contracts would have to be entered into to
implement this. Chairperson Peha commented that the Department of
Finance ("DOF") requires us to be in a prior contract. Attorney Jenson
stated that the DOF has indicated that where a new contract is needed in
order to carry out an already existing enforceable obligation, new contracts
OVERSIGHT BOARD ACTION MINUTES 2 JUNE 6, 20 2
wool
can be entered into. Board Member Nelson asked if the bonds could be
callable, in other words could they be refunded back to the bond holders.
Attorney Jenson stated that the 2004 bonds are callable in 2014 and the
2011 bonds are not callable until 2021.
City Manager Spevacek explained that the Washington Street Apartments
project started back in 2007 when the property was purchased. The
rehabilitation activity was not started immediately because, in addition to
purchasing the property, the property needed to be annexed into the City of
La Quinta, de -annexed from the Riverside County Desert Project Area,
annexed into Redevelopment Project Area 2, then a preliminary work
program was put together in late 2010. The work program identified the
cost of the improvements and then had to go through an entitlement process
with the City involving the Planning Commission and the City Council, which
was concluded in the fall of last year.
The La Quinta Redevelopment Agency ("Agency") issued the bonds in the
spring of 2011 ($25,000,000) and did so in part because the revenue was
needed in order to do the substantial rehabilitation for this development.
When the Supreme Court ruling came out and the redevelopment wind down
began, the City, acting as Successor Agency, prioritized what to move
forward with based upon where their obligations remained. After it was
decided that Coral Mountain and Torre Nissan projects could go forward and
title issues were cleared up, it was time to look at the bond funds and the
project that has been ongoing for five years. It was decided to move
forward with the project because the Agency made promises to the residents
of Washington Street Apartments to do the rehabilitation work.
Chairperson Pefia asked if title to the property was in the Agency's name.
Attorney Jenson indicated that title is held jointly by the Housing Authority
and Successor Agency.
In response to Chairperson Pefia's question regarding USDA approval, City
Manager Spevacek stated that there was a two part approval for this
transaction. First, because the USDA provides rent subsidy to underwrite
the rents down to ability level that the tenants can pay, they need to
approve any transaction that occurred in terms of the transfer of title.
Typically, groups that developed affordable housing with USDA financing did
so in a limited partnership or limited liability company ("LLC") format. The
way ownership was transferred is that the members of the LLC would sell
their interests to new members and that legal entity would stay in place.
The former redevelopment agency did not want to take on the risk of any
past unknown liabilities that the LLC who owned this property may have
incurred which weren't uncovered in due diligence. So, a second process
with the USDA was necessary which required invoking and moving the
OVERSIGHT BOARD ACTION MINUTES 3 JUNE 6, ;012 029
approval process to their office in Washington, D.0 and getting special legal
counsel and others to help move this process through which title was
transferred. This was one of the first instances of that occurring in a USDA
rental project in recent history. USDA approval was needed to show the
former redevelopment agency was a viable entity to take on the project and
was also a viable entity to substantially rehabilitate the units. When shown
the plans for this project, the USDA's response was "you got to be kidding
me" — because of the way these type of projects operate, they generate
enough cash flow for bare minimum reserves to cover replacement of things
when needed or major improvements that are needed to upgrade energy
efficiency or to deal with handicap needs, etc. Typically, when USDA
covenants expire, the properties are sold and the rents go to market rate.
The rents on this project are about $130-$150 per month. The USDA was
skeptical with the rehabilitation and getting the approval for the rehab plans
took an extensive amount of time.
Chairperson Pefia asked why the City would go through so much trouble and
expense to annex something outside of our city. City Manager Spevacek
stated that it cost the Agency $3.6 million to buy 73 units, the property is at
the entry point to the City of La Quinta and the property has not aged well.
Also, the Agency, at that time, needed affordability covenants. The Agency
would buy the property for $3.6 million and assume the financing, then
substantially rehabilitate it so the entry point into the city is something better
than what is currently there and gain 73 extremely low- and very low-income
affordability covenants at a reasonable cost.
Chairperson Pefia stated that the price then jumped to $6.1 million including
the outstanding loans. City Manager Spevacek indicated that was correct;
the equity of the $3.6 million plus the two assumed loans total $6.1 million.
(The loans include a Rural Development loan of $750,000 at .5% interest
which runs for another 18 years and a Provident Bank loan of $2 million
which runs another 18 years). Those loans and the debt service on the
loans are primarily covered by the rents from the apartment complex.
Chairperson Pena asked City Manager Spevacek if the Housing Authority
was looking to put in another $18 million. City Manager Spevacek indicated
that $18 million is the outside estimate and included in that $18 million is
not only the substantial rehabilitation of 72 units but also the new
construction of 24 additional units. So that will give the City 96 units for
$18 million.
Vice Chairperson Osborne commented that this was the first development of
low-income, senior housing for the disabled in La Quinta. City Manager
Spevacek indicated that compared to other affordable projects in La Quinta
OVERSIGHT BOARD ACTION MINUTES 4 JUNE 6, 1012 030
where the rents range from $300-$500 per month, these rents range from
$130-$150 with the subsidy from USDA as part of the loans.
Chairperson Pena asked if USDA approval has been received or are there
things that still need to be done to obtain approval. City Manager Spevacek
stated that the USDA has approved the Housing Authority's ownership of
the project; they have given initial approval to concept plans for
rehabilitation. If and when we move forward to do the substantial
rehabilitation, the USDA will approve the final construction drawings.
Board Member Marshall indicated that the project amount was approved in
the ROPS for both January and July. Attorney Jenson explained that the full
$18 million was on the ROPS but did not have payout in that time period.
She indicated that part of this action is to amend the ROPS, to actually
couple it with the enforceable obligation of the bonds and to show the
monthly amount, which is about $40,000 per month. She went on to
explain that this project was listed on the ROPS as "the rehabilitation of the
Washington Street Apartments" for $18 million as total outstanding
obligation and the La Quinta Housing Authority was listed as payee.
Board Member Marshall commented that the DOF never asked the Board to
remove the project or the $18 million from either of the ROPS. Attorney
Jenson indicated that was correct and this was also confirmed in
correspondence from the DOF dated May 26. Board Member Marshall stated
that when the Board took action on both of the ROPS, the Board essentially
approved the project because it was included. She went on to indicate that
if the expenditure was something that the Housing Authority had already
planned to do and the funds are still available to proceed, she saw no reason
not to proceed.
Chairperson Pefia stated his concerns that the DOF has final say and they
can decide to have us remove this item from our ROPS. Board Member
Marshall indicated that she felt that would be more likely to happen in the
event of an audit and, although some questions may be raised, she agreed
with the interpretation of how housing bond proceeds should be coded. If
the law states that housing assets should be used for the purposes in which
they intended, she doesn't see why the Board would be wrong with moving
forward and approving this action at this time.
Attorney Jenson indicated that line 6 of the ROPS will be amended and the
description will be revised to include reference to $40,000 for each of the
months, which is the initial cost of taking the project to completion.
Attorney Jenson mentioned that part of the Oversight Board's obligation is
to make sure that housing assets get assigned to the appropriate agency.
OVERSIGHT BOARD ACTION MINUTES 5 JUNE 6, 201�' 031
Board Member Marshall agreed and said that the Housing Authority of the
County of Riverside has also assumed responsibility for the housing assets of
the former redevelopment agency.
Chairperson Pefia asked what would happen if the DOF does not approve
this for the project. Attorney Jenson stated that based upon conference
calls with the League of California Cities, her understanding is what is
recommended, before any legal action is taken, even though there is no
formal appeal process within DOF, it was advised that if a disagreeable
response is received, the Successor Agency could take it to the next level,
informally, within the DOF. Then, if reconsideration is not received from the
DOF, the next step would be to file an action in Sacramento on behalf of the
Successor Agency.
MOTION: A motion was made by Board Members Osborne/Nelson to adopt
Resolution No. OB 2012-013 Approving the Implementation of the
Washington Street Apartment Rehabilitation Project, Approving the Use of
2004 Tax -Exempt Housing Bond Proceeds and 2011 Taxable Housing Bond
Proceeds to Fund the Project, Confirming the Status of the Housing Bond
Proceeds as Housing Assets Transferable to the La Quinta Housing
Authority, and Amending the Recognized Obligation Payment Schedule to
Reflect the Project and Payments.
RESOLUTION NO. OB 2012-013
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE IMPLEMENTATION OF THE
WASHINGTON STREET APARTMENT REHABILITATION
PROJECT, APPROVING THE USE OF 2004 TAX-EXEMPT
HOUSING BOND PROCEEDS AND 2011 TAXABLE
HOUSING BOND PROCEEDS TO FUND THE PROJECT,
CONFIRMING THE STATUS OF THE HOUSING BOND
PROCEEDS AS HOUSING ASSETS TRANSFERABLE TO
THE LA QUINTA HOUSING AUTHORITY, AND
APPROVING AN AMENDMENT TO THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE TO REFLECT THE
PROJECT AND PAYMENTS
Motion carried 7 ayes, 0 nays, 0 absent.
STUDY SESSION — None
OVERSIGHT BOARD ACTION MINUTES 6 JUNE 6, J0t2
032
REPORTS AND INFORMATIONAL ITEMS
1 . List of Successor Agency Assets and Bond Proceeds
2. Update on Department of Finance Review of Oversight Board Actions
DEPARTMENT REPORTS — None
CHAIR AND BOARD MEMBERS' ITEMS — None
ADJOURNMENT — 2:42 p.m.
A motion was made by Board Members Osborne/Maysels to adjourn. Motion
carried unanimously.
Respectfully submitted,
Lori Lafond
Oversight Board Setcrary
OVERSIGHT BOARD ACTION MINUTES
033
JUNE 6, 2012