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HomeMy WebLinkAboutRES 2014-11, 2014-12, SARDA 025 Tamarisk District 12 Utility UndergroundingCITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: ADOPTION OF RESOLUTION NO. 2014-11 INITIATION OF ASSESSMENT DISTRICT PROCEEDINGS FOR UNDERGROUNDING OF UTILITIES AT PALM DESERT TAMARISK AND ADJACENT PROPERTIES (DISTRICT 12) AND RESOLUTION NO. 2014- 12 AND RESOLUTION NO. SARDA n95 APPROVING THE EXECUTION OF A DISTRICT 12 (TAMARISK) UTILITY UNDERGROUNDING PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AND THE CITY OF PALM DESERT AND TAKING CERTAIN RELATED ACTIONS DATE: February 27, 2014 CONTENTS: Resolution No. 2014- 11 Resolution No. 2014-12 Resolution No. SARDA n2s Reimbursement Agreement (C Petitions Cover Page City Clerk Certification of Petitions Southern California Edison ROM Letter Recommendation: ) By Minute Motion that the City Council and the Successor Agency Board: 1) Adopt Resolution No. 2014-11 , initiating proceedings for the undergrounding of overhead electric and communication utility facilities to underground facilities pursuant to the provisions of Chapter 12.12 of the Code of the City of Palm Desert, California and the Municipal Improvement Act of 1913. 2) Adopt Resolution No.2014-12.and Resolution No. SARDA-025 approving the execution of a District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement between the Successor Agency to the Palm Desert Redevelopment Agency and the City of Palm Desert and taking certain related action. 3) Approve and authorize the Executive Director, Mayor, and Chair to execute the District 12 (Tamarisk) Utility Undergrounding Project Funding Agreement. 4) Appropriate $400,000 from Account #400-4256-464-4001 to pay for engineering fees that will allow project design to proceed. Staff Report Tamarisk/District 12 Utility Undergrounding District Staff Report February 27, 2014 Page 2 of 3 Executive Summary: Adoption of the above resolution begins the process of forming an assessment district for undergrounding of utilities in the Palm Desert Tamarisk area. The next step will be for the City to hire an assessment district engineer and report back to City Council with a recommendation. Discussion: After several meetings between staff and residents of Palm Desert's Tamarisk neighborhood, volunteers went door-to-door to gather owners' signatures requesting that the City of Palm Desert begin the formation of an assessment district for undergrounding utilities. The total number of property owners in this district is 88, and the number of signatures certified by the City Clerk's office is 62. This represents 70 percent (70%) of the property owners within the district. The 70 percent (70%) certification of petition signatures qualifies this assessment district to participate in the City's utility undergrounding assistance program. Southern California Edison's preliminary rough order of magnitude cost estimate for the assessment district is $2.5 million ($2,500,000.00). This estimate has an estimated accuracy variance of plus or minus 40 percent (40%). Verizon and Time Warner Cable have provided similar rough order of magnitude estimates for their portion of the infrastructure to be undergrounded in the amounts of $160,116.99 and $133,811.00 respectively for a total rough estimate project cost of $2,793,927.99. The project's estimated cost has been discussed at length with the property owners. Attached to this report is the petitions cover page that gives the property owners specific information. More information and a more precise cost estimate of the proposed Tamarisk Utility Undergrounding District (District 12) will be available after Southern California Edison (SCE) has completed its design of the project. SCE requires a calculated Advanced Engineering Fee to begin final design of the project. If the City Council approves staff's recommendation, staff will submit the required written request to SCE along with the fee, which typically is approximately 10 percent of the initial estimated project cost. After the fee has been paid, it will take approximately ten months to finish the design and put the project out to bid. Once the bid prices are known, the engineer will spread the assessment and complete the engineer's report. If all goes well, ballots will be sent out to the property owners for the confirmation vote. If successful, construction could start in 2015. Recently, a group of property owners on Heliotrope Drive have submitted a petition to form their own utility undergrounding assessment district. Staff will work with the project and assessment engineers for the proposed Tamarisk district to determine whether it would be feasible and cost effective to combine the two proposed districts into a single project. g:\rda\david hcrmann\word files\pio\undergrounding\tamarisk undergrounding\tamarisk district resolution staff report 02-27-2014.doc Staff Report Tamarisk/District 12 Utility Undergrounding District Staff Report February 27, 2014 Page 3of3 Fiscal Analysis Although the General Fund would initially advance the funds for this work, it is the intention of the Successor Agency to reimburse the City from redevelopment bond proceeds as utility undergrounding improvements are included in the bond covenants. Expenditure of City funds is contingent on approval of the reimbursement agreement between the City and the Successor Agency to the Palm Desert Redevelopment Agency by the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Prepared By: l David Hermann, Management Analyst Reviewed and Concur: Paul S. Gibson, Director of Finance App val: c / n M. Wohlmuth C$ Manager/Executive Director of the Successor Agency of the Palm Desert edevelopment Agency g:\rda\david hermann\word files\pio\undergrounding\tamarisk undergrounding\tamarisk district resolution staff report 02-27-2014.doc RESOLUTION 7n1 4-11 RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA INITIATING PROCEEDINGS FOR THE UNDERGROUNDING OF OVERHEAD ELECTRIC AND COMMUNICATION UTILITY FACILITIES TO UNDERGROUND FACILITIES PURSUANT TO THE PROVISIONS OF CHAPTER 12.12 OF THE CODE OF THE CITY OF PALM DESERT, CALIFORNIA AND THE MUNICIPAL IMPROVEMENT ACT OF 1913. WHEREAS, the City Council desires to initiate proceedings for the formation of a utility/underground assessment district hereinafter referred to as the "District" pursuant to the provisions of Chapter 12.12 of the Code of the City of Palm Desert, California and the Municipal Improvement Act of 1913 for the formation of said underground assessment district and the levy and collection of taxes and assessment by the County of Riverside for the City of Palm Desert to pay for the improvements and the activities therein; And WHEREAS, pursuant to the above authority, a written petition of the property owners within the said District representing more than fifty percent (50%) of the proposed assessment to be levied has been presented to the City Council; and WHEREAS, the City Council has determined that it is necessary that an engineering report be prepared for presentation at a public hearing to provide information about the extent of the utilities participation and the estimates of the total 72500.00001 \8555841.1 Resolution No.2014i-11 costs to the City and the affected property owners which shall also include an estimate of the time required to complete said underground installation and removal of overhead facilities. NOW, THEREFORE, the City Council of the City of Palm Desert, California does hereby resolve as follows: 1. The above recitals are true and correct. 2. The boundaries of the district are established in accordance with Exhibit "A" attached to this Resolution and made a part hereof and designated as the Palm Desert Tamarisk Utility Underground Assessment District (District 12). 3. City Council does hereby authorize and order a report to be prepared to provide all such information as is required for presentation to the participants to be assessed within the said District. 4. That upon receipt of such report, the City Council will set a public hearing at which time all persons desiring to be heard may present written or oral comments to said report and formation of such District. 02/18/2014 2 72500.00001 \85 55841.1 Resolution No. 7014-11 PASSED, APPROVED AND ADOPTED this day of , 2014, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: By: Rachelle Klassen, City Clerk City of Palm Desert, California APPROVED AS TO FORM: By: David J. Erwin, City Attorney City of Palm Desert, California 02/18/2014 Van Tanner, Mayor City of Palm Desert, California 3 72500.00001\8555841.1 RESOLUTION NO. 2n1 4_12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING THE EXECUTION OF A DISTRICT 12 (TAMARISK) UTILITY UNDERGROUNDING PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AND THE CITY AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A, in the principal amount of $37,780,000 (the "2006A Bonds"), pursuant to an Indenture of Trust, dated as of July 1, 2006, by and between the Financing Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"). B. Pursuant to the Loan Agreement, dated as of July 1, 2006 (the "Loan Agreement"), by and among the Financing Authority, the former Palm Desert Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the 2006A Bonds were lent to the Former RDA as a loan (the "Loan"). C. The Former RDA caused a portion of the proceeds of the 2006A Bonds received as part of the Loan to be deposited into a Project Fund (the "2006A Project Fund"), which was established, and is held by, the Trustee pursuant to the Loan Agreement. D. Pursuant to the Loan Agreement, moneys in the 2006A Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 1, As Amended (the "Project Area"). E. As documented by the Official Statement, dated June 22, 2006, and the Certificate Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006 (the "Tax Certificate"), it was intended, at the issuance of the 2006A Bonds, that the projects to be financed from moneys deposited in the 2006A Project Fund include, among others, the District 12 (Tamarisk) Utility Undergrounding Project (including initial project design and assessment engineering) for the Project (the "Tamarisk Utility Undergrounding Project"). F. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Ca1.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. G. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." G:\rda\David Hermann Word Files \PIO\Undergrounding\Tamarisk Undergrounding\City Resolution Project Area No 1 Bond Proceeds Funding Agmt - Tamarisk Undergrounding.doc RESOLUTION NO. 7014-12 H. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2006A Bonds remaining in the 2006A Project Fund (the "2006A Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. I. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the 2006A Bond Proceeds shall be used for the purposes for which the 2006A Bonds were sold, in a manner consistent with the original bond covenants. J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. K. There remains a balance of 2006A Bond Proceeds in the 2006A Project Fund (in the amount of $15,630,738 as of December 31, 2013). L. The Successor Agency desires to use a portion of the 2006A Bond Proceeds for completion of work with respect to the Tamarisk Utility Undergrounding Project Project. M. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, pursuant to which the City will agree to perform or cause to be performed all work required to complete the District 12 (Tamarisk) Utility Undergrounding Project, with payment therefor to be made from the 2006A Bond Proceeds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. District 12 (Tamarisk) Utility Undergrounding Bond Proceeds Funding Agreement. The District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, in the form attached hereto as Exhibit A, is hereby approved. Each of the Mayor (or in the Mayor's absence, the Mayor Pro Tem) and the City Manager (each, an Authorized Officer"), individually, is hereby authorized to execute and deliver, for and in the name of the City, the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, in substantially such form, with changes therein as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Garda\David Hermann\Word Files \PIO\Undergrounding\Tamarisk Undergrounding\City Resolution Project Area No 1 Bond Proceeds Funding Agmt - Tamarisk Undergrounding.doc RESOLUTION NO. 2014-12 Section 3. Other Acts. The Authorized Officers and all other officers of the City are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement. Any actions previously taken by officers of the City consistent with the purposes of this Resolution, the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement are hereby ratified and confirmed Section 4. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this day of , 2014. AYES: NOES: ABSENT: ABSTAIN: VAN TANNER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK G:\rda\David Hermann\Word Files\PIO\Undergrounding\Tamarisk Undergrounding\City Resolution Project Area No 1 Bond Proceeds Funding Agmt - Tamarisk Undergrounding.doc RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF A DISTRICT 12 (TAMARISK) UTILITY UNDERGROUNDING PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A, in the principal amount of $37,780,000 (the "2006A Bonds"), pursuant to an Indenture of Trust, dated as of July 1, 2006, by and between the Financing Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"). B. Pursuant to the Loan Agreement, dated as of July 1, 2006 (the "Loan Agreement"), by and among the Financing Authority, the former Palm Desert Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the 2006A Bonds were lent to the Former RDA as a loan (the "Loan"). C. The Former RDA caused a portion of the proceeds of the 2006A Bonds received as part of the Loan to be deposited into a Project Fund (the "2006A Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan Agreement. D. Pursuant to the Loan Agreement, moneys in the 2006A Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 1, As Amended (the "Project Area"). E. As documented by the Official Statement, dated June 22, 2006, and the Certificate Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006 (the "Tax Certificate"), it was intended, at the issuance of the 2006A Bonds, that the projects to be financed from moneys deposited in the 2006A Project Fund include, among others, the District 12 (Tamarisk) Utility Undergrounding Project (including initial project design and assessment engineering) for the Project (the "Tamarisk Utility Undergrounding Project"). F. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Ca1.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. Cn vda\David Hermanm Word Filesi,PIO\Undergrounding\Tamarisk Undergrounding \SA Resolution re Project Area No I Bond Proceeds Funding Agmt - Tamarisk Undergrounding.doc RESOLUTION NO. G. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." H. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2006A Bonds remaining in the 2006A Project Fund (the "2006A Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. I. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the 2006A Bond Proceeds shall be used for the purposes for which the 2006A Bonds were sold, in a manner consistent with the original bond covenants. J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. K. There remains a balance of 2006A Bond Proceeds in the 2006A Project Fund (in the amount of $15,630,738 as of December 31, 2013). L. The Successor Agency desires to use a portion of the 2006A Bond Proceeds for completion of work with respect to the District 12 (Tamarisk) Utility Undergrounding Project. M. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, pursuant to which the City will agree to perform or cause to be performed all work required to complete the District 12 (Tamarisk) Utility Undergrounding Project, with payment therefor to be made from the 2006A Bond Proceeds. P. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the Oversight Board of the Successor Agency (the "Oversight Board"), the Successor Agency may enter into agreements with the City. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. G: rda,David Herman\ Word Files\PIO,UndergroundingITamarisk Undergrounding\SA Resolution re Project Area No I Bond Proceeds Funding Agmt - Tamarisk Undergrounding.doc RESOLUTION NO. Section 2. District 12 (Tamarisk) Utility Underaroundina Proiect Bond Proceeds Fundina Aareement. The District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, in the form attached hereto as Exhibit A, is hereby approved. Each of the Chair of this Board, the Vice Chair of this Board and the Executive Director of the Successor Agency (each, an Authorized Officer"), individually, is hereby authorized to execute and deliver, for and in the name of the Successor Agency, the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement, in substantially such form, with changes therein as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 3. Request for Oversiaht Board Approval. The Oversight Board is hereby requested to approve the Successor Agency's execution and delivery of the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement. The Secretary of the Successor Agency is hereby directed to transmit this Resolution to the Oversight Board for consideration at the earliest possible date. Section 4. Other Acts. The Authorized Officers and all other officers of the Successor Agency are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the District 12 (Tamarisk) Utility Undergrounding Project Bond Proceeds Funding Agreement. Section 5. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this day of , 2014. AYES: NOES: ABSENT: ABSTAIN: VAN TANNER, CHAIR ATTEST: G- rda\David Hermann Word Files\ PIO\ Undergrounding \ Tamarisk Undergrounding \ SA Resolution re Project Area No I Bond Proceeds Funding Agmt - Tamarisk Undergrounding doc RESOLUTION NO. RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G.,rda\David Hermann \Word Files \ PIO \ Undergrounding Tamarisk UndergroundingSA Resolution re Project Area No l Bond Proceeds Funding Agmt - Tamarisk Undergroundmg.doc DISTRICT 12 (TAMARISK) UTILITY UNDERGROUNDING PROJECT BOND PROCEEDS FUNDING AGREEMENT This DISTRICT 12 (TAMARISK) UTILITY UNDERGROUNDING PROJECT BOND PROCEEDS FUNDING AGREEMENT (this "Agreement"), dated as of February 27, 2014, is entered into by and between the City of Palm Desert (the "City") and the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency," and together with the City, the "Parties"). RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its four series of tax allocation bonds in 2006 (the "PA1 2006 Bonds") for the purpose of financing and refinancing redevelopment projects of benefit to Project Area No. 1, As Amended (the "Project Area") of the former Palm Desert Redevelopment Agency (the "Former RDA"). B. The PA1 2006 Bonds were issued pursuant to two Indentures of Trust, each dated as of July 1, 2006, by and between the Financing Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"). C. Pursuant to the Loan Agreement, dated as of July 1, 2006 (the "Loan Agreement"), by and among the Financing Authority, the former Palm Desert Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the 2006A Bonds were lent to the Former RDA as a loan (the "Loan"). D. The Former RDA caused a portion of the proceeds of the 2006A Bonds received as part of the Loan to be deposited into a Project Fund (the "2006A Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan Agreement. E. Pursuant to the Loan Agreement, moneys in the 2006A Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 1, As Amended (the "Project Area"). F. As documented by the Official Statement, dated June 22, 2006, and the Certificate Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006 (the "Tax Certificate"), it was intended, at the issuance of the 2006A Bonds, that the projects to be financed from moneys deposited in the 2006A Project Fund include, among others, utility undergrounding projects (including the initial design and assessment engineering for the District 12 (Tamarisk) Utility Undergrounding District Project (the "Project"). G. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. -1- I2812-0001\1610512.1 H. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." I. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2006A Bonds remaining in the 2006A Project Fund (the "2006A Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. J. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the 2006A Bond Proceeds shall be used for the purposes for which the 2006A Bonds were sold, in a manner consistent with the original bond covenants. K. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. L. There remains a balance of 2006A Bond Proceeds in the 2006A Project Fund (in the amount of $15,630,738 as of December 31, 2013). M. The Successor Agency desires to use a portion of the 2006A Bond Proceeds for completion of work with respect to the Project. N. Pursuant to HSC Section 34177(1), the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period ("ROPS Period"). The ROPS must be submitted to the Oversight Board of the Successor Agency (the "Oversight Board") and the DOF for approval. O. Pursuant to HSC Section 34191.4(c)(2), the expenditure of 2006A Bond Proceeds for an obligation must be listed on a ROPS. P. The Successor Agency previously prepared a ROPS ("ROPS 13-14B") covering the period from January 1, 2014 through June 30, 3014 ("ROPS 13-14B Period"). Q. Listed as Item No. 49 (Forty -Nine) on the ROPS 13-14B is the anticipated use of the PA2 2006 Bond Proceeds for the Project. R. The Oversight Board adopted Resolution No. OB-050, on September 10, 2013, approving ROPS 13-14B. The Oversight Board -approved ROPS 13-14B was submitted to the DOF for review. S. DOF issued its letter dated December 17, 2013, confirming the DOF's approval of Item No.49 (Forty -Nine) of ROPS 13-14B, subject to the modification that the ROPS 13-14B Period funding amount for the Project (the "ROPS 13-14B Project Estimate") be changed pursuant to a revised schedule submitted by the Successor Agency during the DOF review -2- 12812-0001\1610512.1 process (the "Revised Schedule"). Per the Revised Schedule, the ROPS 13-14B Project Estimate is $450,000. T. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into this Agreement, for the City to perform or cause to be performed all work required to complete the Project, with payment therefor to be made from the 2006A Bond Proceeds. U. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the Oversight Board, the Successor Agency may enter into agreements with the City. V. Resolution No. adopted by the Oversight Board on , 2013 approving the Successor Agency's execution and delivery of this Agreement was approved [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2013. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. Subject to the provisions of this Agreement and with the funding provided pursuant to this Agreement, the City agrees to perform or cause to be performed all work required for the completion of the Project, including but not limited to the preparation of designs, plans and specifications and all demolitions, construction and installations. The City shall perform such work in accordance with all applicable federal, state and local laws, rules and regulations. Subject to the covenants set forth herein, the City shall have the sole discretion with respect to the design, planning, specification and the timing with respect to all components of the Project. Section 2. (a) The City and the Successor Agency currently estimate that the dollar amount to be spent for the Project during the period from January 1, 2014 through June 30, 2014 (the "ROPS 13-14B Period") is $400,000 (the "ROPS 13-14B Project Estimate"). (b) The Successor Agency shall list the ROPS 13-14B Project Estimate on its ROPS for the ROPS 13-14B Period ("ROPS 13-14B"), in as many line items on ROPS 13-14B as the Successor Agency deems appropriate. (c) Subject to the approval (and any modification) by the Oversight Board and the DOF of the ROPS 13-14B item(s) described in Section 2(b), at the commencement of the ROPS 13-14B Period, the Successor Agency shall transfer or caused to be transferred to the City an amount equal to the ROPS 13-14B Project Estimate from the 2006A Bond Proceeds on deposit in the 2006A Project Fund. Section 3. (a) The Parties acknowledge and agree that the 2006A Bond Proceeds shall be the sole source of the Successor Agency's payment for the completion of the Project pursuant to this Agreement. The Parties also agree that the City's obligation with respect to the work for the Project under this Agreement shall be limited to the extent that funding therefor is available from the 2006A Bond Proceeds. -3- 12812-0001 \ 1610512.1 (b) At any time, if the City determines that the amount previously transferred by the Successor Agency pursuant to this Agreement is insufficient for the completion of the Project, the City's Finance Director shall notify the Successor Agency, specifying the estimated dollar amount necessary for the completion of the Project (the "Additional Funding Amount"). To the extent that sufficient unspent 2006A Bond Proceeds remain available, the Successor Agency shall list the Additional Funding Amount on the ROPS for the next available ROPS Period. Upon obtaining the Oversight Board's and the DOF's approval for such ROPS item(s), the Successor Agency shall transfer or caused to be transferred to the City the Additional Funding Amount from the 2006A Bond Proceeds as soon as practicable upon the commencement of the applicable ROPS Period. (c) Before the transfer of any Additional Funding Amount pursuant to Section 3(b) above, the City may, but is not obligated to, advance funds from sources available to City for the work necessary for the Project (each such advance being a "City Advance"). Any Additional Funding Amount transferred by the Successor Agency pursuant to Section 4(b) shall first be used to reimburse the City for outstanding City Advances, and then to pay for other expenditures of the Project. Section 4. To the extent the City still holds unspent 2006A Bond Proceeds transferred pursuant to this Agreement after the completion of the Project (as determined by the legislative body of the City), the City shall return such unspent 2006A Bond Proceeds to the Successor Agency within a reasonable time after such determination. Section 5. The City covenants that it shall use the 2006A Bond Proceeds in a manner consistent with the covenants in the Loan Agreement and the Tax Certificate, including, but not limited to, any covenants regarding the tax-exempt status of interest on the 2006A Bonds under the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. Section 6. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 7. The Parties agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 8. This Agreement may be amended from time to time by written instrument executed by both Parties. Section 9. No official, agent, or employee of the Successor Agency or the City, or members of the City Council, or members of the Successor Agency Board of Directors or Oversight Board shall be individually or personally liable for any payment hereunder in the event of any default or breach by the Successor Agency or the City, or for any amount which may otherwise become due to the City or Successor Agency, or successor thereto, or on any obligations under the terms of this Agreement. Section 10. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. -4- 12812-0001 \ 1610512.1 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK: SIGNATURES TO FOLLOW] IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By JOHN WOHLMUTH, EXECUTIVE DIRECTOR ATTEST: RACHELLE D. KLASSEN, SECRETARY TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT By VAN TANNER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY -5- 12812-0001 \1610512.1 By BOB A. SPIEGEL, CHAIR Date: -6- 12812-0001\1610512.1 MEMORANDUM RE UTILITY POLE UNDERGROUNDING To: The Honorable Jan Harnik, Mayor John M. Wohlmuth, City Manager David Heimann, Public Information Officer From: -,sot/ Merilee Colton, resident/homeowner at 73442 Salt Cedar Street xi..` xj Phone (760) 895-4174 , r- fin Lesley Miller, Esq., residentlhomeawner at 73466 Goldflower Street ^'Ca rn XI rrn Phone (310) 625-0186 N < rn Date: April 23, 2013 • - • �, us 3* a Subject: Formation of Assessment District to Underground Milky Polks and 'Wires - m This memo provides the City with additional signatures to those included in our memos of April 4 and 15, 2013. By our tally we have collected 75% of the signatures required. We have the promise of one more signature, from Tamarisk, and will continue to gather signatures until the City certifies our results. Enc. Signature pages To: City Council City of Palm Desert PETITION FOR UTILITY UNDERGROUNDING SPECIAL ASSESSMENT PROCEEDINGS 1. We, the undersigned, are the owners of the parcels of land within the proposed assessment district shown on the map attached as "Exhibit A,' which map is a part of this document. The preliminary boundary for District 2013-01A encompasses 87 parcels of land. 2. We hereby file with the City Clerk of the City of Palm Desert this Petition in order to petition the City to order the conversion of the existing overhead electrical and communication facilities to underground locutions within the proposed assessment district, together with appurtenances and appurtenant work, and to undertake proceedings for the formation of an assessment district for purposes of assessment of such parcels of land to pay for the costs of such improvements pursuant to the Municipal Improvement Act of 1913 (Califomia Streets and Highways Code, Section 10000 et.m.) 3. We understand that the total cost of the improvements will be charged to the parcels of land within the assessment district that specially benefit from the improvements in proportion to the special benefits determined to be received by the respective parcels in the assessment district. 4. We understand that without extensive preliminary engineering work, only an estimate of the cost of the conversion can be provided at this time. The total estimated cost is $2,415,000 including engineering and design as well as incidental and financing costs. This estimate is subject to the final design of the improvements and the final cost may exceed or be less than the aforementioned estimate. 5. We understand that the estimated cost stated above does not include the cost of constructing, reconstructing, relocating, or converting electrical and communication facilities, including connections to the owners' premises, located on any parcel of land within the proposed assessment district. The estimated cost of such additional work is approximately $4,000 per residence and will depend upon the length and location of such work. This work may, at the option of the property owner, be performed and paid for by the property owner or, if the property owner wishes, be included in the assessment district costs. 6. We understand that if the petition is successful, a report will be prepared on the project, including plans and specifications, a detailed cost estimate, and a division of the costs among the benefitted parcels of land, that the City will conduct a public hearing on the formation of the proposed assessment district, the ordering of the proposed improvements, and the levying of the proposed assessments, and that the City will mail notice of the estimated amount of the assessment and date, time, and location of the pubic hearing to each property owner within the proposed assessment district. 7. We understand that the City Council must abandon the proceedings to form an assessment district in the event of a majority protest under Article XIIID if, at the conclusion of the hearing on the assessment district, the ballots submitted (and not withdrawn) in opposition to the proposed z.nts exceed the ballots submitted (and not withdrawn) in favor of the assessments, with ballots weighted according to the proporrtional financial obligation of the affected properties. 8. We understand that in the absence of a majority protest (as defined in paragraph 7 above), the City Council may, following conclusion of the public hearing on the proposed assessments, confirm the proposed assessments and order the proposed improvements. We urideerstand that the City Council may make changes in connection with the assessment district, including but not limited to, changes to the proposed improvements (including elimination of improvements) and cost estimates (indudirig line items in the engineer's report); provided, however, this Petition will not be deemed as consent to any increase in the amount of any individual assessment beyond the amounts set forth in the engineer's report. We understand that at the conclusion of the public hearing, if a decision is made by the City Council to proceed, the assessments will become due and payable within the following 30-day period; that bonds may be issued by the City to represent any assessments which remain unpaid at the end of such 30-day period; and that annual assessment installments necessary to pay principal and interest on those bonds, maintenance costs and administrative costs of the City will thereafter be levied and collected. When signed retum to: City Clerk City of Palm Desert 73510 Fred Waring Drive Palm Desert, California 92260 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260 257K Tau 760 346-0611 infnlacit oflralmdercrt.org TO: Honorable Mayor and Members of the City Council FROM: City Clerk DATE: February 12, 2014 SUBJECT: Formation of Underaroundina Utility Assessment District No. 12 (Tamariskl - Certification of Petitions 1, Rachelle D. Klassen, City Clerk of the City of Palm Desert, California, hereby certify the following information. Total District Parcel Count: 88 Number of Signatures Received: 65 Total Number of Signatures Certified: 62 The 62 certified signatures represent 70% of the property owners within the District, thereby qualifying it for initiation proceedings. The petitions are on file and available for inspection in the Office of the City Clerk. RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA EDISO\ IN II Il\.kilt) . 1I January 8, 2014 Mr. David Hermann Public Information Officer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Subject: Rough Order of Magnitude Cost Estimate Rule 20B - District 12 - Assessment District Undergrounding Project Dear Mr. Hermann, SCE's Rule 20 Project Management has reviewed the proposed Rule 20B — CCR 00-135 District 12 Assessment District project in the City Palm Desert. The Rough Order of Magnitude (ROM) estimate for the project is $2,500,000 expressed in 2014 dollars. Per SCE Rule 20B costing, the estimate to install the new underground system is reduced by the estimated cost to construct a new overhead system, referred to as the "overhead equivalent credit". In addition, the estimate excludes the cost of removing SCE's existing overhead facilities, which will be done at SCE's expense. The estimated trench footage to install the new underground electric distribution system is 9,730 feet. The trench footage includes all main line as well as crossings and service laterals in the public right-of-way up to the private property lines. Property owners will be responsible for installing any necessary service conduit on private property as well as modifying their electric panels to accept underground service. The trench footage for the new underground electric distribution system also includes intercepting the existing underground water district well site service, the existing underground system along the south side of Salt Cedar St. and the existing underground feeding into the Marrakesh Community from the pole line on the eastern boundary of the proposed Undergrounding District. Although the propose District includes 87 lots, upon review of SCE overhead inventory maps, from a technical design aspect and construction feasibility, the ROM estimate also includes the undergrounding for the four (4) lots on Purslane St. The ROM estimated cost for this project is provided without the benefit of any site -specific engineering and includes an estimated accuracy variance of ± 40%. Final costs upon completion of project specific designs may vary significantly. Confirmation of the project scope of work and SCE firm pricing will be provided after the final design is completed. After review of this estimate, should the City wish to proceed with the project, please provide a written request for the calculated Advanced Engineering Fee necessary to initiate the design process and complete the attached Customer/Project Information Sheet. SCE will provide the City with an invoice and upon receipt of payment will begin the undergrounding designs for the project. 1 The ROM estimate is based on the following assumptions: • The estimate is for the undergrounding of SCE's facilities only. • Customer pan& and service conversions for SCE electrical facilities are not included in the estimate. Property owners are responsible for installing any necessary underground service conduit on private property as well as any panel modifications necessary to accept underground service. • The estimate does not include the installation of streetlights. • Trenching and pave restoration will be performed based on SCE's trenching and paving standards. • All other utilities will be participating and sharing joint trench costs to the extent technically possible. • Construction will be performed during normal working hours. • All necessary permits to be issued to SCE shall be issued on a no fee basis. • The estimate assumes continued cooperation from property owners, tenants, joint utilities, and the governmental agency. Please communicate the current estimate and assumptions to the appropriate city staff. Thank you for your assistance in this matter and should you have any questions please feel free to call me at (760) 202-4211. Sincerely, nifer Cusack Local Public Affairs Regional Manager Attachments: Map of Assessment Area CCR 00-135, District 12 Customer/Project Information Sheet cc: Sam Newby, Rule 20 Project Manager Dave Seeley, Rule 20 Manager Tony Mathis, Rule 20 Program Manager Talisa Lee, Rule 20 Project Management Project Files 2 as A1il 1213S3a 0 it 1 2 8 7 BURSERA WAY GRAPEVINE ST WILLOW ST IC 3 4 75 74 73 72 71 co r a z 6 5 66 67 68 69 70 m 9 10 11 12 65 54 1 63 16 15 62 61 13 5C 54 1 53 1 5 ' 51 50 TAMARISK ST 37 38 39 40 41 42 43 36 35 34 33 32 31 30 29 44 45 46 47 28 26 20 23 GOLDFLOWER ST 13 14 15 16 17 18 12 11 10 9 8 7 6 5 27 4 3 2 SALT CEDAR ST 49 48 25 24 DESERT HOLLY ST -J Q r VWf t Z W 0 CCR 00-135 District 12 (Lot #s) cc 0 Q 1 AMIR DR 21 22 SOLIHFHN CALIFORN lA EDISON An FDISt '!ATfR\ tJIt)\ tl Conmpnm Individual or Business Name: (Main contact }oapt, snernittai and desron input) Address: City: Attn: Legal Contact: Customer/Project Information Sheet Date Received by SCE: State: ! Zip Code: Phone No: Phone No: (Indrmduai responstbte for sign;ng contracts paym9 fees and rece,ng9 potential refunds) Address: {To send work ore map. rnvo c contracts and potential refunds) City: I State: Zip Code: Primary Field/Job Contact: ' Relationship to Project: Phone No: E-mail Address: FAX No: Project Address: City: State: Zip Code: Thomas Guide Map #: Major Cross Street: Detailed Project Information Residential: ❑ Commercial: ❑ Industrial: ❑ Overhead: 0 Underground: ❑ Tract: Temporary Service Required: Your Construction Start Date Approximate start work date for SCE crews: Approximate date you would like the job completed and energized: Scope of Project: City Rule 20B Assessment District Solar or Generation Equipment to be installed (if yes, explain): Agricultural: ❑ Lot: Panel Size (amps): I Service Voltage/Phase: Total Tons of A/C: Total # of A/C Units: Largest A/C Unit (tons): Total HP of Pumps: Total # of Pump Units: Largest Pump (HP): Installing Gas or Electric: I Heater: 0 Water Heater: El Range: ❑ Square Footage of Buildings (if multiple buildings give all footages): Homo ova 500ft sq ff rx Lwit orr one arse or target' lots reaurre a Load Scheduta Ptease contact you, elseNuan kr a - • farce Customer- rroiect Information Sheet Itr\isecl: L)h ID