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Home My WebLink About0 2012-05-07 Agenda POSTED AGENDA REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MONDAY, MAY 7, 2012 — 1:30 P.M. ADMINISTRATIVE CONFERENCE ROOM- PALM DESERT CIVIC CENTER 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 This Oversight Board has been created pursuant to§34161 through 34190 of the Health and Safety Code forthe sole purpose of overseeing the actions of the Successor Agency to fhe Palm Desert Redevelopment Agency. In accordance with Health and Safety Code§34179(h),all Oversight Board actions shall not be effective for three business days,pending a request for review by the State Department of Finance("DepartmenY'). In the event that the Department requests a review of a given Oversight Board action,it shall have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight Board for reconsideration,and such Oversight Board action shali not be effective until approved by the Department. In the event that the Department returns the Oversight Board action to the Oversight Board for reconsideration, the Oversight Board shall resubmit the modified action for Department approval,and the modified Oversight Board action shall not become effective until approved by the Department. Reports and documents relating fo each of fhe following items listed on fhe agenda, inciuding those received fotlowing posting/distribution, are on file in the Office of the Secretary to fhe Successor Agency to the Palm Desert Redeve/opment Agency/Palm Desert City C/erk and are available for public inspection during normal business hours, Monday - Friday, 8:00 a.m. - 5:00 p.m., 73510 Fred Waring Drive, Palm Desert, CA 92260, telephone(760) 346-0611. Please contact the Office of the Secretary of the Successor Agency to the Palm Desert Redevelopment Agency, 73510 Fred Waring Drive, Palm Desert, CA 92260, (760) 346-0611, for assistance with access to any of the Agenda, Materials, or participation at the meeting. I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the � Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of three (3) minutes unless the Oversight Board authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency's discretion,these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of three(3) minutes unless the Oversight Board authorizes additional time. POSTED AGENDA MAY 7, 2012 � REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY IV. APPROVAL OF MINUTES A. MINUTES of the April 9, 2012, Adjourned Regular Meeting of the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. Action: V. NEW BUSINESS A. ACTIONS/MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY. Rec: Receive and file the Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meeting of April 12, 2012. Action: B. INFORMATIONAL REPORT REGARDING REAL ESTATE ASSETS OF THE SUCCESSORAGENCYTOTHE PALM DESERT REDEVELOPMENTAGENCY. Rec: Oral presentation to be provided at the meeting. Action: C. REQUEST FOR APPROVAL OF ADDITIONAL SERVICES IN AN AMOUNT NOT TO EXCEED $12,500 (ADDITIONAL SERVICES NO. 3) TO CONTRACT NO. R29410A WITH INTERACTIVE DESIGN CORPORATION FOR PROFESSIONAL ARCHITECTURAL SERVICES FOR THE CARLOS ORTEGA VILLAS PROJECT. Rec: Authorize: 1)Additional Service No. 3 in an amount not to exceed $12,500 to Interactive Design Corporation, Palm Springs,California,for Professional Architectural Services; 2) staff to forward to the Oversight Board for approval; 3) Director of Finance to transfer funding from contingency to base in the amount of $12,500 upon approval in accordance with the requirements of ABx1 26—funds are available in the Gapital Budget for the Carlos Ortega Villas, Account No. 703-8691-466-4001. Action: 2 � POSTED AGENDA MAY 7, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY D. LETTERS TO THE RIVERSIDE COUNTY OFFICE OF EDUCATION, DESERT COMMUNITY COLLEGE DISTRICT, AND PALM SPRINGS UNIFIED SCHOOL DISTRICT. Rec: Receive and file. Action: E. REQUEST FOR APPROVAL OF FOUR PROPERTY MAINTENANCE SERVICE CONTRACTS IN AN AMOUNT NOT TO EXCEED $7,180.11 FOR PARCELS LOCATED ON ALESSANDRO ALLEY. Rec: Ratify the Successor Agency Executive Director's approval of four Maintenance Service Contracts in an amount not to exceed $7,180.11 for parcels located along Alessandro Alley with the following vendors: 1) Horizon Landscape for lot clean-up ($3,255.00); 2) Quality Landscape for lot clean-up ($1,560.00); 3) The Land Stewarts for dust mitigation ($1,941.11); 4) pending bid for one-year temporary fence rental (est. $2,344). Action: VI. CONTINUED BUSINESS None VII. OLD BUSINESS None VI11. REPORTS AND REMARKS A. CHAIR B. MEMBERS OF THE OVERSIGHT BOARD IX. ADJOURNMENT I hereby certify, under penalty of perjury under the laws of the State of California,that the foregoing agenda for the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated�s 2nd day of May, 2012. - .��' x.�. - , ..� . . ,�.� � �-- �`s .�� ~ �,%�( "� '5A< <�.,1"r""-�- R chelle D. Klassen, Secretary of the '' Successor Agency to the Palm Desert Redevelopment Agency 3 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: RATIFY THE EXECUTIVE DIRECTOR'S APPROVAL OF FOUR MAINTENANCE SERVICE CONTRACTS IN AN AMOUNT NOT TO EXCEED $7,180.11 FOR PARCELS LOCATED ON ALESSANDRO ALLEY. � a SUBMITTED BY: Martin Alvarez, Redevelopment Manager � � z �. ►�, � DATE: May 10, 2012 o a � �c t 'T ✓� CONTENTS: Location Map �;` � List of Properties, Services, Vendors and Amounts ? �� South Coast Air Quality Management District Notice �" � City Code Compliance Notice �' � � � Recommendation � � � a�� By Minute Motion that the Successor Agency Board: Ratify the Executiv� � Director's approval of four maintenance service contracts in an amount not t � � exceed $7,180.11 for parcels located along Alessandro Alley. � Funding for this expenditure was approved by the Successor Agency and �; Oversight Board on the Recognized Obligations Payment Schedule Page No. 2, \Q line item 43. Backqround The Successor Agency to the Palm Desert Redevelopment Agency controls nine properties along Alessandro Alley acquired with Redevelopment Agency funding. Prior to the dissolution of the Palm Desert Redevelopment Agency, staff was in the process of finalizing the design of the Alessandro Alley Improvement Project. The proposed project would widen and improve Alessandro Alley with public parking spaces and landscaping improvements from Las Palmas Avenue on the east to approximately 300 feet east of Monterey Avenue on the west. The project would widen the alley by 27.0 feet to a total width of 47.0 feet, and would provide parking at a 90-degree angle on the north side of Alessandro Alley. A six foot block wall barrier was also proposed to protect the adjoining residential parcels. The Successor Agency controls and is obligated to maintain seven vacant parcels and one single family residence which are adjacent to the alley (see attached site map). Staff was recently placed on notice by the South Coast Air Quality Management District (SCAQMD) requiring the vacant lots along Alessandro Alley be stabilized with dust palliative in order to mitigate dust complaints (see SCAQMD Notice). Dust has become an increasing concern on several vacant lots because vehicles park and drive across the Staff Report Maintenance Services on Alessandro Alley May 10, 2012 Page 2 of 2 vacant parcels. In addition, the City's Code Compliance Department has also issued Notices to Abate debris and litter that has accumulated on the parcels. To address these issues, staff has secured bids for cleaning up the vacant lots, installing temporary construction fencing across the back side of the vacant lots adjacent to the alley, and applying dust palliative on five vacant parcels to mitigate dust. On May 2, 2012, the Executive Director approved four contracts with the lowest bidders to complete the maintenance services identified above. The Executive Director has the authority to approve contracts under $25,000. Attached is a list of the approved maintenance vendors, type of work performed and the costs associated with each property. Therefore, staff recommends that the Successor Agency ratify four maintenance service contracts for the specified parcels (see attached site map) located along Alessandro Alley in the cumulative amount not to exceed $7,180.11. Vendor Service Cost Horizon Landsca e Lot clean u $3,255.00 Qualit Landsca e Lot clean u $1,560.00 The Land Stewarts Dust Miti ation $1,941.11 Pendin Bid 1 r. tem ora fencin rental $2,344.00 Total $7,180.11 Fiscal Analvsis The four maintenance related service contracts total $7,180.11. Funding for this expenditure was approved by the Successor Agency and the Oversight Board on the Recognized Obligation Payment Schedule Page No. 2, line item 43, Project Area 1. Submitted By: ...�, ,� �.-�-��'�.-�--� Ma " Alvarez, Re evelopment Manager Jan Moore, Director of Housing Department ead: � ' ` J in cCarthy, Assi�a C' y Manager Paul S. Gibson, Director of Finance Appro . \� r----. � ��'��,� � ,�� ---�� John�M. Wohlmuth, Executive irector ,, G:\rda\Martin Alvarez�20121SR41AlIeyServicesSA5-10-12.doc �' rn rn rn rn rn � rn rn rn rn rn rn rn rn rn rn rn rn y „� , N N N N N � . N N N N N N N N N N N N � � , V V V V V L1 �I �I V �I �I �I V V V �I �I �I Z i i i i i r•r�, i i � i � i i i � i i i �, O O O O O O O O O O O O O O O O O � �! V �! 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Q � n � � � Q- � � � � � � � � � � � � � � � � � � -I � v oi o� n� n� ;' � n � A A c� t� n n � n � n a� n� n� o� o� o� o� a� o� a� ni O O � n � � � � � -a � -a -a � � -a -a -a � � DD � `^ v+ v, v, ,, D ru �o �o m m r� m m m r� �D �o r r r i/f� W � i/f� i!� H F+ � � ��.��. 00 i/� F-� il1��. '�. F-� F, F-� U� F-� Q 0 �'' '' V� O O G7' O U'i O O O O F•+ N ~' ' O O O 4' ' O O O O O South Coast Air Qu zy Management District 21865 COPLEY DR., P.O. Box 4941, DIANfOND BAR, CA 91765-0941 ��` f � . � � N OTI C E TO C O M P LY DATE OF INSPECTION` AQMD , FaUlity Name: � Facili[y ID#: Sector. - „ � � - . �. . . ,'i . " . . , ..r': . 'y � , , .. 4 , -,� .. �'� Lowtlon Atltlresr. � .- City: �� n Zip; . . . � � f � .. �.� � . . . . . . '`.1 ..- . , ?`'f� x q...X";'. . �,'�.. Mailing Address: � Q[y: . � . lip; �� _ ._ � �� _ �� , � �� . -�°" �� - This Notice to Comply is being issued to: ❑ Request additional information needed to determine compliance with clean air requirements. �}''Correct a minor viotation found during an inspection. Failure to respond or take corrective action, or providing false statements in response to this Notice to Comply can lead to issuance of a Notice of Violation pursuant to the California Health and Safety Code.The facility cited above is subject to re-inspection at any time to ensure compliance. YOU ARE HEREBY DIRECTED TO COMPLY WITH: * CALAH85 CODE REQUIREMENT� � � . � . . � .� � �. . � COMPLIANCE COMPL2ANCE � �AUB�DATE ACHIEVED DATB . .T-., ' �� ' ��" -y }� / ; �,;t" �, t t�' yf t� r....;r-s /�5 .f:� f' �;j;�,� f .,> r�',%' F t,l � t�....1:�_'� , . �, d. � , � , , . � �, � ' '' � t � .. °�� ,,� 0 t�2-� � �_ �r a) �, � ) a `,e �=t.� -�`�,:�_, ` t< rF' f ,. , r , 4 ,-�< -� >� i,' �; ` �� '..v �r-. , . . , . � .. , . i u. u� . . � � i a�k. . , . �. . ,. �k d �; � . + r _l �Y�{, j �� .�/9 � .� X�.., b � . . ,. Z � M1 a r F r,C.5 . .. a ♦ � f '-._. .. .:- �,.._._ ..... 3 _....._ ��.-.� 4 �---..� �� 5 -�' `'� � _ °�... �,.-„- `�. ..-y' .�- `'�. 6 �,,. Scrved To:� krved By: R * ' / , ' + _'�� ,j� s 4. � ,� > ,'�"t "� r t;�� ,�::(, '� 'r�- r,. r� t- .. TI(le: Date Served: Plwne: Fax: `: 4 ; i . ..i �,I � /�/ (�) — . �� ;r(',. �,.'� ` � i: g t ,,d',. =" , ..�.,f�E. .� .r��..� . t e � ¢k e`� f� y�f.. ... �, , . . . W C..�`` s'; ... Emall Address: ,. Phone: Email Address: Forms/Applicatbns/Info availabk at: ';'u", , ,;•,� "+" , -� r ; C�aqmd.gov www.aqmd.gov . (� r e_� .F , . `�"�x� t,� '.,��j ri. -!i`,�jf t . ., .�, i��F�r�;'� ,s. Instructions: ;� • For each minor violation cited above,compliance shatl be achieved by the comptiance deadline specified for that particular viotation. • Within 5 working days of achieving compliance for each respective vio(ation,the owner/responsible officer of the cited facility must comptete and return a signed copy of this Notice to Comply to the South Coast Air Quatity Management District at the address tisted above. • Please copy and return this Notice to Comply as many times as necessary to provide the required information. On each copy,indude the date on which comptiance was achieved. Date,sign,and send all completed copies to the attention of the inspector named above. I hereby certify that the facility cited in this Notice to Comply has achieved compliance with the requirements listed above. NAME OF OWNER/RESPONSIBLE OFFICIAL TITlE SIGNATURE DATE NO T/CE#. �„ � f FII.E COPY(Blue) FACILI7'Y COPY(Gold) INSPF,CTOR COPY(White) y� , � � � � � � � � � � � � � � � � 7 3-5 I o 1'ar:i> WnxiMc; D►tivr Pni.ns Di:s�.�zT, Cnc�t�oHN�n 9zzGo—�5�ti �y THL: 7G0 34G—o6z� inCo(�r'cityufpalmdesert.org __ __ __ __ . _ .. _ _ . _ _ _ ORDER TO ABATE A PUBLIC NUISANCE April 25, 2012 City Of Paim Desert c/o Successor Agency to Palm Desert Redevelopment Agency 73510 Fred Waring Dr Palm Desert, CA 92260 Case No. 12-1685 Dear City Of Palm Desert: By virtue of proceedings under the authority of Palm Desert Municipal Code, Chapter 8.20, you are hereby ordered to abate the following condition(s) from your property described as 44887 San Antonio Cir, also legally known as APN No. 627-071-069- -. The City is requesting your cooperation in correcting the following item(s) in order for your property to be in compliance: • Remove all overgrowth of grass, weeds, and vegetation from the vacant lot to include the areas around the palm trees. Remove all trash, litter and debris from the vacant lot. The City of Palm Desert has determined that the foregoing conditions are a public nuisance and therefore constitute a violation of the Palm Desert Municipal Code Chapter 8.20. You have until Mav 05, 2012 to abate the public nuisance(s), or appeal the determination of public nuisance within fifteen (15) days of the date of this notice to the City Council of the City of Palm Desert, California. Any appeal must be in writing and filed with the City Clerk's Office, City Hall, Palm Desert, California. The City is concerned about preservation of natural desert growth; therefore, when employing individuals to do the abatement work, please give instructions to leave any natural foliage. Extreme caution must be exercised to prevent blow sand during windstorms. Cleared land requiring soil disturbance should be watered down to aid in compaction and prevention of blow sand. Attached is a list of suggested guidelines for abating vacant lots. ��'>YAINIEOONPI(Y(lEOPAPFA Individuals hired by you to abate the parcel should check with the City for the correct parcel location and abatement instructions. Failing to do so may result in the wrong parcel being abated or not abated to the satisfaction of the City. If you do not abate the nuisance or appeal its determination within the specified time period, the City will proceed with the abatement of specific mentioned items described as junk, trash, and all other debris from public view. All junk, trash, and debris will be taken to the County landfill and discarded in a lawful manner. Should the City hire its own contractor and abate the conditions, the cost of abatement including administrative fees, will be assessed against the property in the form of a nuisance abatement lien or a tax assessment against the property. Thank you for your assistance in maintaining a high quality of life for your neighborhood, as well as for the City of Palm Desert. Should you have any questions, please contact our office at (760) 346-0611, ext. 477. Sincerely,, ��-' -� —, _ , - ' .,y / ,i .;,. �<:� �.<.� t�_:.r ._.�,!�y.�f`;-' Pedro Rodrigu,�f '�'�� Senior Code Compliance Officer Attachment CIiY Of PNIm UESERi n `•PfliN1100NFFfY(IfOPAPIP I D R A F T PRELIMINARY MINUTES D R A F T ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MONDAY, APRIL 9, 2012 — 1:30 P.M. ADM/NISTRATIVE CONFERENCE ROOM- PALM DESERT C/V/C CENTER 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260 This Oversight Board has been created pursuant to§34161 through 34190 of the Health and Safety Code for the sole purpose of overseeing the actions of the SuccessorAgency to the Palm Desert Redevelopment Agency. In accordance with Health and Safety Code§34179(h),all Oversight Board actions shall not be effective for three business days,pending a request for review by the State Department of Finance("Department"). In the event that the Department requests a review of a given Oversight Board action,it shall have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight Board for reconsideration,and such Oversight Board action shall not be effective until approved by the Department. In the event that the Department returns the Oversight Board action to the Oversight Board for reconsideration,the Oversight Board shall resubmit the modified action for Department approval,and the modified Oversight Board action shall not become effective until approved by the Department. BY ilWE2SIC.�HT B`Jr�RD I. CALL TO ORDER ��s ^��.,��C'►-o� Chair Spiegel convened the meeting at 1:32 p.m. �'��2._►FI�.� �Y� II. ROLL CALL Original on fi�e witti City Clerk's Office Present: Member Lisa Brandl (representing Riverside Co. Board of Supervisors) Member Heather Buck (Palm Desert RDA former Employee) Member Bill Carver(representing Riverside County) Member Edwin Deas (College of the Desert) Member Patricia A. Larson (representing Coachella Valley Water District) Chair Robert A. Spiegel (Mayor, City of Palm Desert) Absent: Member Peggy Reyes (representing Desert Sands Unified School District) Also Present: John M. Wohlmuth, Executive Director of the Successor Agency-Palm Desert RDA William L. Strausz, Richards, Watson & Gershon, Successor Agency Counsel Justin McCarthy, Assistant City Manager Paul S. Gibson, Finance Officer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Veronica Tapia, Accountant Martin Alvarez, Redevelopment Manager Lori Carney, Human Resources Manager David Hermann, Management Analyst/Public Information Officer Rachelle D. Klassen, Secretary, Successor Agency-Palm Desert RDA POSTED AGENDA D R A F T APRIL 9, 2012 ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY III. ORAL COMMUNICATIONS Member Carver heartily commended staff, particularly Ms. Tapia, for an excellent presentation of the Recognized Obligation Schedules (ROPS) in the agenda packet, making them very easy to understand in preparation for today's meeting. IV. APPROVAL OF MINUTES A. MINUTES of the March 14, 2012, Special Meeting of the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Upon a motion by Member Larson, second by Member Carver, and 6-0 vote of the Oversight Board, with Member Reyes ABSENT, the Minutes were approved as presented. Due to the nature of the Continued Business item having a bearing on the remainder of today's order of business, with Oversight Board concurrence, Chair Spiegel suspended the agenda at this point in the meeting to take up Section VI. - Continued Business, Item A, followed by Section V. - New Business, Item B. Please see those portions of the Minutes, respectively,for resulting action. Immediately thereafter, the Board resumed with the agenda as presented. V. NEW BUSINESS A. ACTIONS/MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY. Member Larson moved to receive and file Minutes of the Successor Agency to the Palm Desert Redevetopment Agency Meeting of March 8 and Preliminary of March 22, 2012. Motion was seconded by Member Carver and carried by 6-0 vote,with Member Reyes ABSENT. B. REQUEST FOR APPROVAL OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE SECOND SIX-MONTH PERIOD, JULY 1, 2012, THROUGH DECEMBER 31, 2012, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 (ROPS2). Member Larson moved to approve the Recognized Obligation Payment Schedule for the second six-month period of July 1, 2012, through December 31, 2012 (ROPS2). Motion was seconded by Member Buck and carried by 6-0 vote, with Member Reyes ABSENT. 2 POSTED AGENDA D R A F T APRIL 9, 2012 ADJ�URNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY C. RESOLUTION NO. SA-RDA 005 - A RESOLUTION OF THE SUCCESSOR AGENCYTO THE PALM DESERT REDEVELOPMENTAGENCY,AUTHORIZING THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND (LAIF) OF THE STATE OF CALIFORNIA, AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH. Member Larson moved to approve investment of monies in the Local Agency Investment Fund (LAIF) - Resolution No. SA-RDA 005, as presented. Motion was seconded by Member Deas and carried by 6-0 vote, with Member Reyes ABSENT. D. PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED. Member Larson moved to receive and file the Palm Desert Statement of Investment Policy, As Amended. Motion was seconded by Member Carver and carried by 6-0 vote, with Member Reyes ABSENT. E. CONTRACT NO. C27540A - WITH WHITE NELSON DIEHL EVANS LLP TO PERFORM A SPECIAL AUDIT OF THE PALM DESERT REDEVELOPMENT AGENCY AND PALM DESERT HOUSING AUTHORITY FOR THE PERIOD ENDED JANUARY 31, 2012. Member Larson moved to approve Contract No. C27540A as presented, subject to discussion with legal counsel and bond trustees about the necessity therefor. Motion was seconded by Member Deas and carried by 6-0 vote, with Member Reyes ABSENT. F. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT, GOVERNMENT CODE SECTIONS 81000, ET SEQ. Member Larson moved to receive and file the Successor Agency to the Palm Desert Redevelopment Agency Conflict of Interest Code pursuant to the Political Reform Act, Government Code Sections 81000,et seq. Motion was seconded by Member Brandl and carried by 6-0 vote, with Member Reyes ABSENT. 3 POSTED AGENDA D R A F T APRIL 9, 2012 ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G. REQUEST FOR APPROVAL OF THE ADMINISTRATIVE BUDGETS FOR THE PERIODS OF JANUARY 31, 2012, THROUGH JUNE 30, 2012; AND FOR JULY 1, 2012, THROUGH DECEMBER 31, 2012. Member Larson moved to approve the Administrative Budgets as required under AB 1 X 26 for the periods of January 1, 2012, through June 30, 2012, and July 1, 2012, through December 31, 2012, as presented, with the understanding that the reimbursement for Administrative Costs included therein from the Administrative Costs Allowance shall not exceed the legal limit for the Administrative Costs Allowance and that the remainder must be paid from other funding sources. Motion was seconded by Member Brandl and carried by 6-0 vote, with Member Reyes ABSENT: H. REQUEST FOR APPROVAL OF REPAYMENT SCHEDULE TO THE PALM DESERT HOUSING AUTHORITY FORTHE OUTSTANDING LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND FOR THE 2009-2010 SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND(SERAF) PAYMENT. Member Larson moved to approve the repayment schedule to the Palm Desert Housing Authority for the loan from the Low and Moderate Income Housing Fund for the 2009-2010 SERAF Payment. Motion was seconded by Member Buck and carried by 6-0 vote, with Member Reyes ABSENT. VI. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF THE UNCERTIFIED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) (Continued from the meeting of March 14, 2012). Member Carver moved to approve the uncertified ROPS as presented. Motion was seconded by Member Brandl and carried by 6-0 vote, with Member Reyes ABSENT. VII. OLD BUSINESS None VIII. REPORTS AND REMARKS A. CHAIR Chair Spiegel thanked his colleagues for giving their time, goodwill, and good judgment to serve on Palm Desert's Oversight Board. 4 POSTED AGENDA D R A F T APRIL 9, 2012 ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY B. MEMBERS OF THE OVERSIGHT BOARD Member Larson echoed Member Carver's remarks earlier in the meeting about the presentation of agenda materials, and she appreciated the verbal explanations and staff's patience in helping Board Members understand the items and their role in taking action on them. She said it was very helpful. IX. ADJOURNMENT With Oversight Board concurrence, Chair Spiegel adjourned the meeting at 2:29 p.m. ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 5 Klassen, Rachelle From: Klassen, Rachelle Sent: Thursday, April 12, 2012 6:22 PM To: 'Department of Finance-ABx1 26 Impiementation (redevelopment_administration@dof.ca.gov)' Cc: Wohlmuth, John; 'William L. Strausz; Mc Carthy, Justin; Moore, Janet; Tapia, Veronica; Gibson, Paul Subject: Apr. 9, 2012, Palm Desert Oversight Board DRAFT Minutes Attachments: 2012-04-09-Palm Desert OB Mtg-DRAFT-min.pdf Dear Director Matosantos: Attached is a copy of the DRAFT Preliminary Minutes for the Adjourned Regular Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency Meeting of April 9, 2012. Please let us know if we can be of any further assistance. na�ae¢ee n, KeAsseM, n1n1e City Clerk, City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260-2578 (760) 346-0611, Ext. 304 Fax: (760) 340-0574 e-mail: rklassen@citvofaalmdesert.or� 1 � MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, APRIL 12, 2012 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chair Spiegel convened the meeting at 3:00 p.m. He stated that Vice Chair Kroonen would not be present today, because he was serving on the Selection Committee interviewing potential candidates to be the new President of College of the Desert to replace Jerry Patton, who was retiring at the end of this school year. II. ROLL CALL Present: Absent: Director Jean M. Benson Vice Chair William R. Kroonen Director Cindy Finerty r Director Jan C. Harnik ��• �' Chair Robert A. Spiegel BY�VERSIGHT BOARD ON . 5-_!� �(� � Also Present: V�R;�I�D BY John M. Wohlmuth, Executive Director David J. Erwin, City Attorney Original on fije wi�l City Clerk's Office Justin McCarthy, Assistant City Manager Rachelle D. Klassen, Secretary Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager John Rios, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 12, 2012 III. ADJOURN TO CLOSED SESSION Request for Ciosed Session: None On a motion by Harnik, second by Finerty, and 4-0 vote of the Successor Agency Board of Directors, with Kroonen ABSENT, Chair Spiegel adjourned the meeting to Closed Session of the City Council at 3:02 p.m. He reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the March 22, 2012, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 209RDA, 211 RDA, 218RDA, 223RDA, 214SA, 215SA, 220SA, and 226SA. Rec: Approve as presented. 2 MINUTES ' SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 12, 2012 C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Months of December 2011, January 2012, and February 2012 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. Upon a motion by Finerty, second by Benson, and 4-0 vote of the Successor Agency Board of Directors, with Kroonen ABSENT, the Consent Calendarwas approved as presented. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XII1. REPORTS, REMARKS,SUCCESSORAGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None 3 MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 12, 2012 C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None XIV. ORAL COMMUNICATIONS - C None XV. ADJOURNMENT On a motion by Finerty, second by Benson, and 4-0 vote of the Successor Agency Board of Directors, with Kroonen ABSENT, Chair Spiegel adjourned the meeting at 4:58 p.m. /�d�,�.� ROBERT A E , CHAIR ATTEST: RA HELLE D. K SSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 4 Oversight Board of the May 7, 2012 Successor Agency to the Palm Desert Redevelopment Agency Meeting I nformational Re ort - p SuccessorA enc to the g y Pa Im Desert Redevelo ment A enc p g y . 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R29410A WITH INTERACTIVE DESIGN CORPORATION FOR PROFESSIONAL ARCHITECTURAL SERVICES FOR THE CARLOS ORTEGA VILLAS PROJECT SUBMITTED BY: Martin Alvarez, Redevelapment Manager , ��L� EY ovE CIGHoT BOARD ARCHITECT: Interactive Design Corporation ��v�_� ^ �� 199 S. Civic Drive, Suite 10 Palm Springs, CA 92262 ��FIED B DATE: April 26, 2012 Original on file with City Cierk's O e CONTENTS: Additional Services Proposaf from Interactive Design Corporation Agreement Sections 3.8 and 3.10.2 Additional Services Request Recommendation By Minute Motion that the Successor Agency and Housing Authority Boards: 1. Authorize Additional Service No. 3 in an amount not to exceed $12,500 to Interactive Design Corporation (Contract No. R29410A) for Professional Architectural Services; 2. Authorize staff to forward to the Oversight Board for approval; and 3. Authorize the Director of Finance to transfer funding from contingency to base in the amount of $12,504 upon approval in accordance with the requirements of ABx1 26. Funds are available in the Capital Budget for the Carlos Ortega Villas, Account No. 703-8691-466-4001. Contract No. R29410A Staff Report Additional Services No. 3 with Interactive Design Corp. for Carlos Ortega Villas April 26, 2012 Page 2 of 3 Commission Recommendation The Housing Commission approved the recommendation at its regularly scheduled meeting of April 11, 2012. Staff will provide a verbal report upon request of the Successor Agency/Housing Authority Board. Back�tround �n April 8, 2010, the Palm Desert Redevelapment Agency Board ("Agency Board") authorized the Executive Director to negotiate and finalize a Professional Services Agreement with Interactive Design Corporation (IDC) for architectural services for the Carlas Ortega Villas in an amount not to exceed $734,450 along with reimbursable expenses in an amount not to exceed $36,722. With the action the Agency Baard also authorized the establishmentdditio anta geovallfrom th Agen�y Boa�d ed $75,00�. Use of the contingency requires a pp The praject entitlement process was completed and the project design approved by the Successor AgencylHousing Authority on March 22, 2012. Interactive Design is moving forward with canstruction documents and is designing the project based on available data regarding the location of existing utilitiss. In order to canfirm the exact location ofthole 17elocations forl water�, seweat gasteand�te ephone' at delays, IDC proposes to po the project site. Staff has reviewed the Request for Additional Services with Successar Agency legal counsel who haS State�dit onal setvi ce'sto bet ppro9ed w thoutean'oam ndment to O e (attached) allow for ad contract. Therefore, staff recommends approval of the Additional Services Request with Interactive Design Corporation in the amount not to exceed �12,540 (Contract No. R29410A) and that the euNo. 3 to he Overs ght�Board fo�rapproval�.S authorize staff to forward Additional Servic G�daW eathe�BucklCados O�lega�/IIa51SH RpttR29410A-COVAprvASNo3 042612.doc Contract No. R29410A Staff Report Additional Services No. 3 with Interactive Design Corp. for Carlos Ortega Viilas Apri! 26, 2012 Page 3 of 3 Fiscal Analvsis The fiscal impact to the Successor Agency/Housing Authority involves transferring an amount not to exceed $12,500 from contingency to the base contract. The total contract amount (including contingency) is listed on the Recognized Obligation Payment Schedule (ROPS) under Project Area 4, line 18; this request will not require an adjustment to the tota! obiigation. Submitted By: ,�- ,�� rtin Alvarez, Redevelopment Manager Moore, Director of Housing Department Head: ; , � s in McCarthy, Assi t ity Manager Paul S. Gibson, Director of Finance val: / 1 �`e-�-� BY SA��,� 5—L 1 , s�Y`��1��__—_' � � �r��.,�5�.�/�.� �L.�._..�. y�^�' ht�i�n�-. `:^T'_'1lr.�+, "'._'_� 7 �h_4w.4�....:i •�.�A. ,. o M. Wohlmuth, Executive Director ��I�;�,,�.�;�__, �xr, .,-.,�� . ,.. , :�,,.� ,_,E',,,�� 1 �Y Ht��SL� �.i;�k-� �� i�.4x�...�� '..,.:.`�.-��..._.. °�r�r�34=::�`. a��-,r�.J��.��I�� .. , c , .o... ��1'ICi�F"1�� Gft f( �.� �''` �. .�-' .._ :. `.. �i` � ��I�Y'� �T „ .(7 V.. G:VdaUieather Buck\Cados Ortega YdlaslSH Rpt1R29410A-COVAprvASNo3 042612.doc ;;; CONTRACT AMENDMENT 1008.3 ��❑ 1 N T E R A C T i V E D E S I G N C O R P O R A T I O N ARCHITECTS + DATE April 3, 2012 199 S.Civic Drive,Suite 10 Palm Springs,California 92262 TO Heather Beck, PD RDA T:(760)323-4940 F:(760)322-5308 maria@interactivedesigncorp.com VIA email FROM Maria Song PRO)ECT IDC No. 1008 Carlos Ortega Villas SuB)eCT Additional Services for Potholing Page I of 2 We an proce�0iry�wKn Eerelopmm o1�h�ahove rNerence6 pro�e<t n+cm�Aance v.iU ou�undarsund�ol iAe mattruUnsuef nouC Celow.Uni�s�w��KN��'��({�n Cli�d�K�NO�O� DISTRIBUTION +m.�am.�< <n.�n�.ae��:a o-ommeaueoi�h�. �oe«.«o�a,,n�roiiow� wii��co�,�aereea<o�f�e��m��o�,�e��e.nw�a� 's ❑ F'dx: ADDITtONAL SERVICES 1008.3 to PALM DESERT REDEVELOPMENT AGENCY AGREEMENT FOR ARCHITECTURAL SERVICES CONTRACT NO. R29410A Dated May I 9, 20{0 In accordance with Article 3.10 COMPENSATION, the parties wish to ADD to the above-referenced Agreement to retain the services of Architect to design the project to include potholing to survey the physical locations of the existing utilities on site and apply this information to the design of the wet and dry utilicies: A. Pursuant to Artic{e 3.10 C�MPENSATION, Section 3.10.2 PAYMENT FOR ADDiTIONAL SERVICES, the parties agree to retain the services of Architect as follows: I. Existing utility information by Potholing approximately 17 locations of water, gas, sewer,and telephone in the vicinity of proposed utilities, buildings, and site amenities. The Architect will: a. Contract with the Civil Engineer to provide (See Exhibit A& B): I. Pothole exhibit 2. Coordi�ate with survey contractor 3. Apply information to the proposed site design b. Meet with Givil Engineer to review existing condicions and resolve any site design conflicts. c. Determine which utility lines will not be used for the proposed project and provide capping information in the tonstruction plans of the projecc. d. Meet with RDA Staff to review outcome. B. Article 3.10 COMPENSATtON, Section 3.10.2 PAYMENT FOR ADDTIIONAL SERVICES is amended to include the following compensation for said specific services as identified hereinabove: p;��QO$Carlos Ortega VillaslCONTRACTS11008.3 Contnct Am Potholing 23JUN I I.doc■ �� VNTERACTIVE DESIGN CORPORATION I. Compensation shall be on hourly basis according to the rates in the original contract not to exceed Twelve Thousand Five Hundred Dol4ars ($I 2,500). The survey services of the civil design services are included in this fee. C. All other terms and conditions of said Agreement shall remain in effect. AGREED AND ACCEPTED Aoril 3 2012 Reuel A.Youn , si en Date Interactive D ' n Corp ation California License #C I 74 T: (760) 323-4990 Palm Desert Redevelopment Agency Date 73510 Fred Waring Drive Palm Desert, California 92262 p:11008 Carlos Qrtega VillaslCONTRACTS11008.3 Convact Am Potholing 23JU Page 2 of 2 I�I.ANNING•C1YIL LNGINBflR(NG•LAND S!)IlVFY1NG • . � � • a � + a � � ► • Praject• Carlos Ortega Villas MSA Job#�: 1892 MSA RFP#: 4387 Initiated by: Maria Song Client Reference: 1DC Date: June 23,2011 MSA PM: Bruce S.Kassler The following change is proposed for the above referenced project and is a request to amend thc previous established and contracted relationship between MSA Consulting, Inc. and Client and is to act as an addendum to any existing contract or relationship established between the two parties. Authorized changes may also impact delive�y dates and milestones. Tlie undersi Eled art desires MSA Consultin Ina to rovide the followin additional oods a�id services: Extra Work Field Change Design Change Schedule ChAnge �ther(Specify) Potholing Coordination: 1. Secure pothaling estimate and coordinate with the Contractor. 2. Prepare a pothola exhibit. ' 3. Survey crew to provide pothole tie in points. 4. Field meetings with the pothole Contractor. 5. Review all pothole digsheets. 6. Update existing utility base plan. 7. Potholin auumin 1?excavations•5 as halt and 12 in dirt. Start Work(for this Work):Upon NTP Est.Complete Work(for this Work):3 weeks from HTP Overall Schedule impact: No Yes Cost Impact: No Yes Propoaed Total Additional Cost:510,535 Fixed Fee:510,535 Time&Materisls: Inclnded is a hand drawn pot6oling exhibit: Signature: Entity: ❑Accept ❑Reject Dete: ;-1'_Unl3�,i~ Ilui�i I)kni � It��cu�� 1iic�c�i • ( �t +i��ic�i� ■ «_'�7U �l�i)..;?tl-�)S1 ) ■ -hU.i_';-?�N: i�a� / ��.`1�,1(�� t��i�f�t .cum 3.7 ScheduJo of Servicea, 3.7.1 17meiv Perf�►mance Standand. Ar�hitect shall perfort» etl Services hereunder as expedltbusly as is canslstent with prafesslonai sklll and care, as well as the orderly progress of the Project wo�ic so as not to be the cause, fn whole or in part, ot delays fn the oompletion af the Project or In the achievement of any ProJect milestanes, as pt+ovlded herein. 5pecifically, Architect shall perform its Se►vices so as to aAow for the fuU end sdequete completlon of the ProJect wlthin the time requlred by the Agency and with(n any completlon schedules adopted for t�e Project. Archited agrees to coordinate witfi Agencys staff, contractor� and consuitsnts ln the performanoe oi the Serviaes, end shall be availsble to Agencys staff,contractors end consultents at aA�eason�ble times. 3.7.2 Performance Schedul�, Architect shall complete all wurk in accordance wit�t�he mllestonss specifled fn Exhlblt`D'Schedule oi Pertomtance.The schedule sha11 not be exceeded by Am,httect wlthout the phor written epproval of l�ency. If the Archkect's Services ere t�ot completed withln the time provided in Exhibit 'D" the agreed upoh perfam'�ence schedule, or any mllestones establlshed thereln, R is understood, acknow�edged and agreed that the Agency wilt suffer damage for which tl�e Archicect w10 be responslble pursuant to the irtdemn�ration provis�On of this A�reement 3.7.3 Ex�usabfe Dela�• Any detays fR Archlteci's w�ork ceused by the folbwJng shall be adderi to the ttn'►e for complatfor� af any obi(gations of Archttect: {1) the acHons of qgency or its empbyees; (2)the actlons of thoee 1n direct coMr�ctuel relatlonshlp wtth Agency, (3)the edlons af any govemmental agerky having ju�sdictlon aver the ProJect; (4) the actions of any partk6 not wlthln the reasonab�e controt of the Archltect; and(5)any ad of God or other uMoreseen occurnence not due to any feuif or negllgence on the pert o1 Architect Neither the Agency nor the Architect shaA be �able for damages, �Iquldeted or othetw►se, to ttte other on eocouM of such deiays. 3.7.4 R��+�t for FYc�ueabl Q91�Y CP9diL. The A�hit6d Shell,wfthin thirty�30) catendar days of the begfining of any excusable delay(unless AgencY 9fsnts In wNtfng a fucther perlod of tlme to flle such noGCe p�fof to the date of flnal payment undar the Agreement)�notifY the Agency In wrtting of the causes oi delay. Agency wlll then astertaln the fects and the exterrt af the delay, and grant an extenslon af Ume tor complet�ng the Serv�ces when, In its sole judgment, the findir�gs of fad)ustityy such an extenabn. The Agencys fndings of fact thereon shail be flne!end oonclusrve on the pe�tles. �xtensbris of Ume shell appy on1Y to that portton of the SeMces affec.`tad by the delay end shalt not apPhr to other portions of the Se►vkes►�ot so afFected. The sote remedy of Arc.httect br e�nstons of t)me shell be sn ex6enslan ot the performance tlme at no cost to the A�qency !t Addtti�onai Senrlces are nequired as a rasu�of an excusable delay, the pa�ties shall mutuaAy agree tfsenato pursuar�t to the Add�lonal Servloas provlsion of this Agreement. Should Archltect mske an BPPlicad°n for an e�ens#on of tlme, Archltect shafl submit evidence that the Insurenoe qol'rcles required by thts AgreemeM rematn in effed durtng the re4uested additianel perlod of time. 3.g Addltlonal Arcfiitect Servlces. 3.8.1 Reauest r Services. At Agencys request, Anchifect mey be asked to perform se►vtces not otherwtse Included tn this Agreement. not induded wfthln tt►e beslc 6 es�eee+a K�,�r uv-.kr,�zooe SO4'U9UBit4t,1 serofces listiad in Exhibk 'A" atteched heretn, and/or not customarlly fumished in accordance with genareNy er.oepted erchitet;tural prectice. i 3.8.2 �. As used heraln, "Add+tional 5ervfces" mean: (1) eny work � which ie detarmined by Agency to be necessary for the proper completlon of the Project, but which the parties did �ot ree�sonebly entlGpate would be necessery for the Arohited to perfortn at the ezecuaon of this Agroement; or(2) any work Iisted es Additionai Services in Exhibit "A" attached hereto. Archttect shafl not pertorm, nor be compensated far, Additional Services witl�out prio�written authonzetfon from AgencY end wlthout an agreement between the Agency and Architect as to fhe Compensation to be paid for such servics6. Agency shal!pay Archltect for any approved Add�ional Services, pursuent to tt�e compensation provlalons heretn, so long ea such senirces ere not rnade necessary through the fault of Architect pursu8nt to the indemn'rflcaflon provlslon ot thls AQreement. 3.8.3 FYAmQIes of Additlonal Se_ry c1�. Such Addilional Servic�s shell not include sny redesign or r�vislons to drewings, speciF+cations or other documer�ts when such revisions are neoessary In aMer to b�tng such documents into cornpAance wfth applicable laws, rules,regulatlons or codes of which Ar�hitect wes sware or shouid have been awere pursuaM to the lews and regulations provls{on of this Agreemeni above. 5uch Additianal Serviaas may include, but shall not be�mited to: 3.8.3.1 Seaaratahr Bld P bns af Pmiect. Plan preperatlon and/or adminlstration of work on porilons of the Pro}ect separetaly b�d. 3.8.3.2 Fumlt�re ans! Int,g�ior Desian. Assistance to Agency, If reQueated,for the selection of moveable fumihue, equipmertt or articles wNlch are not inclexSed in tt�e Constnktbn Documenta. 3.8.3.3 Fault of Caniractor. Services caused by delinquency, defauk or insotvency of contraatnr, or by maJor defeds In the work of the aor�tradar, provided that any such servfces made neeessary by the fallure af Architect to detect and report such metters when it reasonab�y should have done so shat}not be cornpensated- 3.6.3.4 lnconsistent/L�Qmvel�or ln�tructt�ns. Revisbns !n drawings, speeifications or other doce�ments when suCh revfstons are inconslstant with written approvals or fnstnx�ons previousty glven and ars due to causes beyond the control nf Architect 3.8.3.5 Le�al Pro irws. Seroing as an expert witness on Agencys behalf or attending legal proceedings to which the Archtted ts nvt�party. 3,g,3.g Dsmaae,�j� aQ.._3r. Supervislon of repalr of damages to any stnx;ture. 3.6.3.7 i�¢re Environmentat Servlces. Addftbnel w�ork required for envlronmentet cot�ditfons (e.g. esbestos or sile conditlons) not already contemplated wltt�ln the Architect's services for the Project. 3.9 Agency Respenstbitftl�s. A�ency's r�esponsiDflities ahall lnclude the folbwing: 3,9.1 eta an� Inf�rm�tion. Agency shaii make ava(leble to ArchRect all necessary data end informetion canceming the purpose and requirements of the ProJeet, 7 �a►�.s�a►c��i�P�,key sooe SDlU813d3�108.� including scheduNng and budget lirn(tatlans, ob)ectives, constraiMs and c►iteria. As pert of the budget Ilmtt�tbn (Mormadon, the Agency ahall provide ihe Archikect with a preliminary oon6truction budget("Aeencys Preiiminery Construction Bud9eY)- 3.9.2 �1l.TA Suncest. AQency shall fumish Architect with, or dlrect Architect to procure at Agencys expense, a survey of the ProJect slte prepered by a registered surveyor or ctvif engineer, any other record dxuments whict� shaN lndicate existing structures, land ieetures, Improvements, sewer, water, gas, electrical, utillty Iines, end boundary dhnenstons of the site, and any ather such pertinent information. 3.9.3 Bid Phase. Distribute Constructlon Documents to bldders and condud the opening and revisw of blda for the Projed. 3.9.4 Reauired insoec�ns��}d T_e�ts. Retain consu#tant(6)during constn�ction ta conduct mate�ials testing and inspection or environmentallhazardous materlais testing and inspectian pursuant Do any appiiceble laws, rules or regulations. 3.9.5 Fees ot Reviewin4 or Licenslna Aaencles. Dinectly pay or relmburse the payment of all fees reQuirad by any revlewing or i�censing egency, or ather agency having approval�uri,�.�l n over the Proi�d. 3.9.8 Anenc�s Reoresent�tive. The Agency hereby designstss the Aaency Maneger, or his or her designee, to act as Its representa�ve tor the petformance of this Agreement("Agencys RepreseMative"). Agency`s Representative shaf{ have the power to ect on behaN of ihe Agerecy for all purposes under thFs Contrad. The Agency Manager hereby designates Cetherine Walker, Senlor Managemer�t Analyst, or his or her designee, as the Ager►c�/s CoMact for the implementatian of the Servlcas hereunder. Cont�erdor st�all not accept dtrectlon dr orders f�Dm any person other than ttse Agencys Representattve or his or her designee. 3.9.7 Review and At�eroved Do�uments. Revtew aU documents submltted by Architect, incfcxfing chsnge orders and other metters requiring approval by the Agencys goveming board or other ofi'�cials. A�ency shall advise Architect of decisions pertaining to such documents within a ressonable Bme after submission�so as not Uo cause unreasor►able de{ay as provided In the excusa6le delay provisfans of this ABreement above. 3.10 Compsnsatfon. 3,�p.� Arrhkar�t'�e t^.��p�Setion for Bae1c Servlces. AgenCy shal) pay to Archltect, for the pertormance v1 alt Services rendered under thls Agreement, the total not to exceed amount of S�wn hundrad�nd thirty four thousand,l�our hundrad and flRy dolters. (; 734,45D) {?otaf Compensatbn"). The Total Compensation ahalf constltute complete and edequate payment for Services under th(s Agreement. 3.10.2 Pavment [Qr A�ddltlonal Servlces. At any time durin8 the term of this Agreemertt, Agency mey request thet Archttecf perbrm Addttbnei Servfces. As usecf herein, Addltional Servlces meens any work whlch ls determined by Apency to be necessary for the proper completion of,the PraJect, but whlch the Pa�ties did not reasonebly anticlpate wauld be necessery et t�e executlon of this Agreement. If a�thorized, such Additfonal Servlces wlll be 8 a.�e.a�a w+.e�u�-.�+v z000 SDPUB�78]IDf.! compenseted at tt�e rates and In the manner set forih tn Exhibit "C attached �ereto and lncorporated her�in by refet�ence, un{ess e flat rate or some other farm of compensatbn is mutually agreed upan by the parties. If Agency requ(nes Mchitect to h1re conaultams to perforttt any Addltlonai SeNtces, Ar�ch�teet ehal! be compensated therefore at the rates end in the rnanner set fort#► In Exh(bit 'C" attached hereto and lncarporgted hereln by refer�ance, uNass a flat rate or soma other form of compensation is mutueliy agreed upon by the parties. Agency shell have the authority to review end approve the rates of any such consultents, in addk(on, Archltect shal! be reimbu�sed for any expanses IncUrred by such consultants pu�suant to the terms and conditions of Sactlon 3.10,3. 3.10.3 Reimbursable Exoenses. Reimbursable expenses are in addition to compensetbn for the Senrices and Additlonal 5ervices. Architect sheli not be refmbursed for any expenses unlass autho�ized 1n writlng by Agency, whlch epproval may be evldenced by Incfusion In Exhibft"C' attached hareto. Such reirnbursaale expenses shall fnclude aniy those expenses whlch are reasonably end necessarl�Y incurred by Archttect In the interest of the proJect, Arct�ftect shaU be requlrad to acqulre prior written con8ent in order to obtain retmbursement for the bllowing: (1� extraordinary transportatian expenses incurred fn carmectlon with the Project; (2) a�t-�oi-town trave! expenses incumed in connection with the Project; (3j fees paid for securing approval of authoriNes having ju�lsdictlon over the Pro]ect; (4} bld document duplicatton coats in excess of$1,000; and (5y a�her costs,feea and e�cpenses(n excess of 3�,000. 3.10.4 Pavment to Arc�rtect. Archftect's compensatlon and reimbursab{e expenses shaA be pakl by AAe►�cy to Arohitect no more otten than monthly. Such periodic PaYmer�ts shall bo made based upon the per+cer+tage af work completed.and in acconiance wit� the phasing and tunding schedule provided In Exhibk"B'arxi the compsnsatton reces fndlr,ated tn ExhibR "C' attached hereto and incarpotated herein by reference. In order to receive payment, Anchltect shefl presertt to Agency an ftemiz,ad statemeM whlch Indicates Services perFortned, peroentage af Services completed, method for oomputing the amount payeble, and tfie artaunt to be paid. The statement shall describe the amount of Servlces provk{ed since the In�tal commencement date, or alnoe the start of the subsequent btiltng perbds, es approprlate. t�nough the dete of the statsmeni, as uuell as those expensea for which relmburaement is requested for that statement period. The amount peld to Architeet sha►I never exceed the percentege amourns euthorimd by the phasing end funding schedule loceted tn Exhibk 'B' atteched heretn. Agency shell. within thirty (30) days of reoelving such sfatement. review the statemeni and pey al! apprnved charges thereon pursuant to the prowalons of Civp Code Sectlon 3320. Dls/wted amounts sttall be resoNed by the partles in a mutuafly agreeable man�er. Payments m8de for Add'�b�a1 5erv'ices sha11 be made in fnstallments, not mone often then moMhy, proportbnate to tt+e degree of cornpletton of such services or in such ofher manrter as the parttes shall apacffy when such serv)ces �re agreed upon, and fn accordance with any authai�ed fee or ratie schedute. In order to receive payment,Ar�hitec!sha}I present to Agency an itemized statement wfilch indicates the Additlonal Senrtces perbrmed, peroentage af Additionsl Services completed, methad for computing the arnount payebie, and the amount to be paid, The sfatemeM shail describe tt�e amount of Addftlonel Seroices provided since the ini�al camrnenc.�ment date,or sinca the start of the subsequent billing per�ods, e�approprkate, through the date of the statement. �ency shall, within thirty (30) deys of recelving such stetement, review the statement and pay a0 approved charges thereon pursuant to the provtsions of Civil Coda Section 3320. Diaputed amounts shell be resolved by tha partfes in a mutuaNy agreeable menner. 9 Batt Beef d 141pa lLP—JWy�00� SDPUBUE340B.1 SOCC�SSOR AGBNCY TO TH�tALM D�RBDEY�LOPM�IT A(�(CY tALM D&�'1'HOU�IGA�I�I'1`Y Contract#/P.O.# R29410A 17371 ��-w,,,,,,��0�� Additional v�� Services No. 3 Contingency: YES X NO Contract Purpose Architecturai Services for Carlos Ortega Viilas Account No. 703-8691-466-4001 ConsultanYs Name Interactive Design Corporation Project No. Address: 199 SOuth CiviC D�Ive, Suite 10 vendor rvo. 326 Palm Springs, CA 92262 You are hereb requested to comply with the following chan es from the contract plans and specifications: DECREASE INCREASE DESCRIPTION OF CHANGES In Contract Price In Contract Price Provide additional services to confirm exact location of underground utilities (water, sewer, gas, telephone)by potholing appraximately 17 locations. 12,500.Q0 � i i TOTALS: - 12 500.a0 NET ADDITIONALSERVICES PRlCE: 12 500.00 JUSTfFICATION: Identify location of underground utilities to mitigate potential construction delays. OTAL BUDGET FOR PROJECT: + $46,172.00 ONTINGENCY: Less: Expend. & Encumb. Ta Date: - 791,472.00 Amount Approved by Authority: + 75,000.00 Less: This Change Order Amount: - 12,500.00 Less: Prior Amendment(s): - 20,300.00 BALANCE OF BtJDGET Less: This Amendment: - 12 500.00 REMAINING �OR PROJECT: 42 200.00 Balance Remainin of Contin enc : 42 200.00 The amount of the Contract wi11 be (Decreased) Increased by the Sum of: Twelve thousand five hundred and NO/100 Dollars($12,500.00). G:btlatiMeather BucklCanos Orlega YuaslStl RpnCarlos Ortega Villas AddSrvc No J•HA 4•t 2-12.doc See reverse ... Contract R29410A Additional Services �AS) ____�_ Continued from front This AS covers changes to the subject contract as described herein. The consultant shall perform all work as necessary or required to complete the AS items for a lump sum price agreed upon between the Consultant and the Palm Desert Hausing Authority, otherwise referred to as Owner. Contract Time Extension -0- Days. Revised Contract Total $803.972,00 The undersigned Consultant approves the foregoing AS# 3 as to the changes, if any, in the cantract price specified for each item incfuding any and all supervision costs and other miscellaneous costs relating to the AS, and as to the extension of time allowed, if any, for completion of the entire work on account of said AS # 3 . The Consultant agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the AS items. This document will become a supplement of the contract and all provisions wil! apply hereto. It is understood that the AS shall be effective when approved by the Owner. Execution of this AS by the Consultant constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner fram all claims, demands, costs, and liabilities, in contract, !aw or equity, arising out of or related to the subject of the AS, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, and loss of productivity, as well as any and al1 consequential damages. This document will become a supplement to the Contract as permitted in Sections 3.8 and 3.10,2 and alf provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1. REGlUESTED BY: 2. ACCEPTED BY: EXECUTIVE DIRECTOR CONSULTANT Date Accepted 3. CERTIFIED FUNDS AVAlLASLE: 4. APPROVED BY: FINANCE DIRECTOR ROBERTA. 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Z � N M � � N 0 � m U THE SU(CESSOR AGENCY TO TNE Pfll �l DESERt REDEVEIOP �l� N1 AGENCY ; 73-5io FKEu WnRtNc DRivE PAI.M DESERT, CALIFORNIA 92260-2575 - ; rEL: 76o 346—o6u y� Fnx: 76o 34i-637z i nfoC�pal m-deserc.org � � March 8, 2012 � ' � ��_._.BY OVERSIGHT �iOARD �r� ��-'I-2�t Riverside County Office of Education ��:RIFI�D B � Teresa Hyden, Auditor Controller Division of Administration and Business Services Original on file with City Clerk's O ce 3939 Thirteenth Street PO Box 868 Riverside, CA 92502-0868 Re: Your Letter Demand Dated January 30, 2012 for Aileged Delinquent Pre-AB X1 26("AB 26") Passthrough Payments of Tax Increment Revenues This letter responds to your letter to the Palm Desert Redevelopment Agency ("former agency") dated January 30, 2012 alleging that the former agency miscalculated and underpaid Riverside County Office of Education pre-AB 26 statutory passthrough payments and/or pre-AB 26 payments under a passthrough agreement, and asserting that the successor agency to the former agency is now responsible for this alleged obligation. Your effort to treat your alleged pre-AB 26 passthrough claim(s} as the responsibility of the successor agency is misplaced. As an initial matter, the duties of successor entities under AB 26 are limited and do not include any obligation to taxing entities in connection with pre-AB 26 passthrough payment claims against a former redevelopment agency. A successor agency has a duty to pay the "enforceable ob{igakions" of a former agency. However, AB 26 specifically excludes passthrough payments from the definition of enforceable obligations. See Health&Safety Code§34171(d)(1)(D). Your claim for unpaid or underpaid pre-AB 26 passthrough payments is based entirely on the statutory scheme that existed prior to the enactment of AB 26. That statutory scheme has been eliminated with the scheme established in AB 26. "Whenever the Legislature eliminates a statutory remedy 'before a judgment becomes final,' the legislative act 'destroys the right of action."' Zipperer v. County of Santa Cruz, 133 Cal.App.4th 1013, 1024 (2005) (internal citations omitted). A statutory right or benefit that is not reduced to a final judgment is not a vested right, but is instead merely an "inchoate, incomplete, and unperfected"right,which is subject to legislative abolition. Id. Through AB 26, the Legislature has effectively abolished the former tax increment revenue statutory scheme thak gives rise to your claim(s), replacing it with the property tax revenue scheme established under AB 26, including Health &Safety Code§§34172, 34183, and 34188. Upon redevelopment agency dissoiution, AB 26 deems all indebtedness of former agencies to be extinguished, exceot that indebtedness that is an enforceable obliaation under AS 26 mav still be�aid. See Nealth �Safety Code § 34174{a). However, as noted above, passthrough payments are excluded from enforceable obligations under AB 26. Although courts normally construe statutes to operate prospectively, the courts correlatively hold that when a pending action or claim rests solely on a statutory basis, the withdrawal of that statutory right or remedy without a savings clause will terminate all pendina actions based on that statutory right or remedy. The justification for this rule is that all statutory remedies and benefits are pursued with the full realization that the Legislature may abolish the remedy or right at any time. Rfalto Unified School District :��nixno o�nt�cao�ou a former redevelopment agency related to passthrough payments, which are also excluded from• enforceabfe obligations recognized by AB 26. See Hea{th&Safety Code§34171(d)(1)(D). In addition, as noted above, the successor agency has no duty to taxing entities in connection with claims against the former redevefopment agency based on alleged unpaid or underpayment of pre-AB 26 passthrough payments, or with respect to payment of passthrough ob{igations on a go fonnrard basis. The county auditor-controller is charged with the duties of conducting an audit to establish the former agency's assets and liabilities, and documenting and determining each former redevelopment agency's passthrough obligations to taxing agencies. See Health &Safety Code§ 34172. The provisions of Healkh & Safety Code §§34183 and 34188 governing the county auditor-controller's distributions of property tax revenues to taxing agencies with property in the project area(s) ("affected taxing agencies") require the county auditor-controller to distribute property tax revenues and the proceeds of the sale of former agency assets to the affected taxing agencies in accordance with their prope�ty tax shares. These provisions do not contemplate a distribution to a particular taxing entity based on a pre-AB 26 claim of unpaid or underpaid passthrough payments. If, contrary to the position set forth in this letter, the county auditor-contr411er should determine that you have a cognizable claim in connection with pre-AB 26 passthrough obligations, any distribution of property tax revenues that recognizes that cfaim as enforceable would reduce the amounts to which other affected taxing entities are entitled under the plain language of sections 34183 and 34188. As a result, we are copying the Riverside County Auditor-Controller and the Oversight Board to the Successor Agency to the Palm Desert Redevelopment Agency (once convened), on this letter response, so that they are aware of your claim. The Oversight Board has a fiduciary duty to the affected taxing agencies and may wish to communicate with the County Auditor-Controller in connection with your claim. To the extent that you intend your letter dated January 30, 2012 to Palm Desert Redevelopment Agency to serve as a claim under the Galifornia Government Tort Ciaims Act, it is being returned to you as untimely for the reasons set forth above and because it was not presented within six months after the event or occurrence as required by law. See Section 901 and 911.2 of the Government Code. Because the claim was not presented within the time allowed by law, no action was taken on the claim. Your onty recourse at this time is to appfy without delay to the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency, c/o Successor to the Palm Desert Redevelopment Agency, 73510 Fred Waring Drive, Palm Desert, CA 92260 for leave to present a late claim. See Sections 911.4 to 912.2, inclusive, and Section 946.6 of the Government Code. Under some circumstances, leave to present a late claim will be granted.See Section 911.6 of the Government Code. You may seek advice of an attorney of your choice in connection with this matter. If you desire to consult an attorney,you should do so immediately. erely, John M.Wohlmuth Executive Director cc: Paul Angulo, CPA MA, Auditor-Controller, Riverside County Auditor-Controller,4080 Lemon Street, 11'h Floor, Riverside, CA 92502 SUCCESSOR AGENCY TO TNE Pfll�l OfSERt REOEVELOPMENi AGENCY -2- GlydaNeronica Tapia\Word FileslSuccessor Agency13-7-12 letter to RCOE re late pasa through claim.docx ��..nienuaumatorwn = a � — � �I � , �• • � I � • .� �a.K�� 1�'�'C�VE�S�GI-�^I' $Q.A�i.1C� �-��,�.�..�,�=r�� January 30, 2012 ��N.�..�� __--� �_ 3439 Thirteenth Street �'�,12IFI�D Ii P.O.Box 868 Justin McCaRhy Riverside,California Redevelopment Director Original on 61e with Ciry C1erk�S ��CC 5zsoz•osba palm Desert Redevelopment Agency �9s>>szs-6s3o �3-510 Fred Waring Drive Palm Desert, CA 92260 47•336 Oasis Street Paul Angulo,CPA, MA Indio,California Auditor-Controller 92201-6998 Riverside County Auditor-Controller (760)863-3363 4080 Lemon Street, 19th Floo� Riverside, CA 92502 RE: Demand for Payment of Deilnquent Tax Increment Revenues and for 24980 las Brisat Road inclusion in County Auditor-Controller's Audit Pursuant to Heaith and Murrieta,California Safety Code 34182 9z56z (951)600-5680 As you know, the California Supreme Court recently upheid Assembly Bill ("AB") 1X 26, which orders the dissotution of all redevelopment agencies by February 1, 2012, inciuding the Palm Desert Redevelopment Agency("RDA"). When the RDA dissoives,its existing obligations, including its duty to make proper pass-through payments to the Riverside Counry �ffice of Education ("LEA"), will shift to a successor agency. Therefore, p�ior to the RDA's dissolution,we wish to notify you of the claims of Riverside County Office of Education {"LEA") as a result of the RDA's failure to properly calculate and allocate pass-through payments. � The LEA is party to a pass-through agreement ("AgreemenY') with the RDA, as well as being an affected taxing entity for redevelopment project areas managed by the RDA. As Rive�side County shown an the attached financial Qverview (Attachment #1), the LEA believes that the Board of Education RDA has inCorrectly calculated the amount of tax increment to be passed-through the LEA. This miscalculation is believed to have resulted in a significant loss to the �EA and Gerald P.Colapinto will result in an even larger deficit in the future, if not corrected usa a.conye�s,Pn.o. Please take notice that this letter constitutes the LEA's demand, under the Agreement Lynne D.traig and all applicable laws, including the Govemment Claims Act if applicable, that payment of all past due amounts be made immediately. Bruce Dennis In additian, it is our understanding that under Nealth&Safety Code section 34182(added v�ck Knight,Ed.D. by AB X1 26), that each Auditor-Controller must conduct an audit of"each redevelopment Adolfo Mediano.Jr.,J.D. a9enCy's assets and liabilities, to document and determine each redevelopment agency's pass-through payment obligations to other taxing agencies, and to document and Elizabeth R.Toledo determine both the amount and the terms of any indebtedness incurred by the redevelopment agency and certify the initial Recognized Obligation Payment Schedule." The LFJ� hereby requests that the County Auditor-Controller review and analyze ; �� :�;��.��as 2 Jus6n McCarthy Paul Anguto, CPA, MA January 30,2012 Page 2 The LEA vaiues its relationship with the City and Palm Desert Redevefopment Agency, and hopes to resoive this matter quickly and outside of formai litigation. If you have any questions ar require additional information, please contact me at(951)826-6790. Thank you for your prompt attention to this matter. erely, � � Teresa Hyden Auditor/Controller Division of Administration and Business Services (951)826-6790/FAX[951 J 826-6974 Enclosures ' c: Peter Fagen, Fagen Friedman 8 Fulfrost LIP, Counsel Darrin Watters, Executive Directo�, Dolinka Group, LLC THE SUCCESSOR AGENCY TO THE PHIf� DESERT REDEV � IOP �IEH� AGEHCY 73-5�o FRFD �/ARING nRt�'E PALM DESFR'C, CALIFORNIA 92260-2578 - TEL: 760 346—o6ii r,�x: 760 34�-637z info�palm-desert.orK --— — _ - � r,. —_ March 8, 2012 �� . �Y QVERSIi:sli�l� iai�tl�..,�J oN r^'''t '�-o t 2--- _ Coilege of the Desert VERIFI�:D BY�- _ , `, Wade Ellis, CPA Original on file with C;ity Clerk's Offbce Director, Fiscal Services 43-500 Monterey Avenue Palm Desert, CA 92260-2499 Re: Your Letter Demand Dated January 27,2012 for Alleged Detinquent Pre-AB X1 26("AB 26") Passthrough Payments of Tax Increment Revenues This letter responds to your ietter to the Palm Desert Redevelopment Agency ("former agency") dated January 27, 2012 alleging that the former agency miscalculated and underpaid College of the Desert pre- AB 26 statutory passthrough payments andlor pre-AS 26 payments under a passthrough agreement, and asserting that the successor agency to the former agency is now responsibie for this alleged obligation. Your effort to treat your alleged pre-AB 26 passthrough claim(s) as the responsibility of the successor agency is misplaced. As an initial matter, the duties of successor entities under AB 26 are limited and do not include any obligation to taxing entities in connection with pre-AB 26 passthrough payment claims against a former redevelopment agency. A successor agency has a duty to pay the "enforceabie obligations" of a farmer agency. However, AB 26 specifically excludes passthrough payments from the definition of enforceable obligations. See Health &Safety Code§34171(d)(1}(D). Your claim for unpaid or underpaid pre-AB 26 passthrough payments is based entirely on the statutory scheme that existed prior to the enactment of AB 26. That statutory scheme has been eliminated with the scheme established in AB 26. "Whenever the Legislature eliminates a statutory remedy 'before a judgment becomes final,' the legislative act 'destroys the right of action."' Zipperer v. County of Santa Cruz, 133 Cal.App.4th 1013, 1024 (2005) {internal citations omitted). A statutory right or benefit thal is not reduced to a final judgment is not a vested right, but is instead merely an "inchoate, incomplete, and unperfected"right, which is subject to legislative abolition. Id. Through AB 26, the Legislature has effectively abolished the former tax increment revenue statutory scheme that gives rise to your claim(s}, replacing it with the property tax revenue scheme established under AB 26, including Health &Safety Code§§34172, 34183, and 34188. Upon redevelopment agency dissolution, AB 26 deems all indebtedness of former agencies to be extinguished, except that indebtedness that is an enforceable obliqation under AB 26 mav still b�. See Health 8�Safety Code §34174(a). However, as noted above, passthrough payments are excluded from enforceable obligations under AB 26. Although courts normally construe statutes to operate prospectively, the courts correlatively hold that when a pending action or claim rests solely on a statutory basis, the withdrawal of that statutory right or remedy without a savings clause wiil terminate all .�endinca actions based on that statutory right or remedy. The justification for this rule is that alt statutory remedies and benefits are pursued with the full realization that the Legislature may abo►ish the remedy or right at any time. Rialto Unified Schoo!District v. Mann, 18 Cal.3d 819, 829(1977). AB 26 abolishes not just pending claims, but also judgments against -_tIM1F�OMA!(I(�OVHl�f��TP/Ilc al1A Sotl�ilttic\��C�AIIIPV{)tY]I SPttllllt<�T[�rllltnf>N I��Pf�Pf FiIPG\rl�ItfPM 1111�IM1If�QVS7I I�iWQ�7-A-��IP�iPf 1!1 r�1I�fP la��nat<thrn��h rla�m�n�v a former redevelopment agency related to passthrough payments, which are also excluded from enforceable obligations recognized by AB 26. See Health &Safety Code§ 34171(d)(1)(D). In addition, as noted above, the successor agency has no duty to taxing entities in connection with claims against the former redevelopment agency based on alleged unpaid or underpayment of pre-AB 26 passthrough payments, or with respect to payment of passthrough obligations on a go forward basis. The county auditor-controller is charged with the duties of conducting an audit to establish the former agency's assets and liabilities, and documenting and determining each former redevelopment agency's passthrough obligations to taxing agencies. See Health & Safety Code§ 34172. The provisions of Health & Safety Code §§ 34183 and 34188 governing the county auditor-controller's distributions of property tax revenues to taxing agencies with property in the project area(s) ("affected taxing agencies") require the county auditor-controller to distribute property tax revenues and the proceeds of the sale of former agency assets to the affected taxing agencies in accordance with their property tax shares. These provisions do not contemplate a distribution to a particular taxing entity based on a pre-AB 26 claim of unpaid or underpaid passthrough payments. If, contrary to the posikion set forth in this letter, the county auditor-controller should determine that you have a cognizable claim in connection with pre-AB 26 passthrough obligations, any distribution of property tax revenues that recognizes that claim as enforceable would reduce the amounts to which other affected taxing entities are entitled under the plain language of sections 34183 and 34188. As a result, we are copying the Riverside County Auditor-Controller and the Oversight Board to the Successor Agency to the Palm Desert Redevelopment Agency(once convened), on this letter response, so that they are aware of your claim. The Oversight Board has a fiduciary duty to the affected taxing agencies and may wish to communicate with the County Auditor-Controller in connection with your claim. 7o the extent that you intend your letter dated January 30, 2012 to Palm Desert Redevelopment Agency to serve as a claim under the California Government Tort Claims Act, it is being returned to you as untimely for the reasons set forth above and because it was not presented within six months after the event or occurrence as required by law. See Section 901 and 911.2 of the Government Code. Because the claim was not presented within the time allowed by law, no action was taken on the claim. Your only recourse at this time is to apply without delay to the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency, c/o Successor to the Palm Desert Redevelopment Agency, 73510 Fred Waring Drive, Palm Desert, CA 92260 for leave to present a late claim. See Sections 911.4 to 912.2, inclusive, and Section 946.6 of the Government Code. Under some circumstances, leave to present a late claim will be granted. See Section 911.6 of the Government Code. You may seek advice of an attorney of your choice in connection with this matter. If you desire to consult an attorney,you should do so immediately. S� ce ly, John M.Wohlmuth Executive Director cc: Paul Angulo, CPA MA, Auditor-Controller, Riverside County Auditor-Controller,4080 Lemon Street, 11'h Floor, Riverside, CA 92502 SUCCESSOR AGENCYTO THE Pfll�l UESERi REOEVEIOPMENI AGENCY -2- GV4a�Veronica Tapia\YJord FileslSuceesaor Agency\3-7-12 letter to COD re lale pass lhrough claim.docx .niximoxatnuturaa+ d ��{ . R Co l lege "of th e Dese rt 43-�00 Monterey Avenue Ya�m Dese�� CA 92260-2499 � � B'�'OVERSIGHT Bf�ARII� January 27,2012 �N� / ` ��_ Justin McCarthy V�RYFIED B'Y� Redevelopment Director Original on file with City Clerk's OfFice Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, CA 92260 Paul Angulo, CPA, MA Auditor-Controiler Riverside County Auditor-Controller 4080 Lemon Street, 11 th Fioor Riverside,CA 92502 RE: Required Change to Statutory Payment Calculation and Request for Inclusion in County Auditor-Controlter's Audit Pursuant to Health and Safety Code§34182 As you know, the Cal+fornia Supreme Court recentiy upheld Assembly Bill ("AB")X1 26, which orders the dissolution of all redevelopment agencies by February 1, 2012, inciuding the Palm Desert Redevelopment Agency ("RDA"). When the RDA dissolves, its existing obligations, including its duty to make proper pass-through payments to the Desert Community Coliege District ("LEA"}, will shift to a successor agency. We have recently entered into an agreement with a consultant to confirm the amount of revenue that we should expect to receive from the successor agency and f or from the Auditor-Controller in future years. The consultant will also confirm that we have received the proper funding for prior years. Thcablereaws, nclud ng#he Go�ernhment Cla ms Act andlornany Pa s ThroughrAgreementsn f appec bleapp We also write to notify you of a required change to the RDA's calculation of statutory payments to the Desert Community College District pursuant to Health and Safety Co eellate`c urt decs on. Los Ange�es (collectively, "Statutory Payments"). This change reFlects a recent app Unifisd Schoo► t7istrict v. County of Los Angeles, et a!(2010) 1$1 Cat.App.4th 414 ("LAUSD Decision"), � finding that RDAs improperly excluded Education Revenue Augmentation Fund ("ERAF") payments in calculating the Los Angeles Unified School Oistrict's share of Statutory Payments. The California Supreme Court has denied a petition for review by the RDAs, making the LAUSD Decision of precedential effect statewide. As you know,the RDA allocates Statutory Payments to the LEA in"proportion to the percentage share of properfy taxes each affected taxing entity.._receives during the fiscal year the funds are aflocated." (See HSC 33607.5, subd.(a)(2).) The LAUSD decision clarifies that RDAs must include EFtAF payments in the LEA's"percentage share of property taxes°when calculating Statutory Payments. , Y ��'��, ` `p� ��,. ,:a��d > � ._� - .� ;:,��- �'t��1� ��;ER�` �'�`.`�t'. '� Desert Community Cotlege District•76Ql346-804i _ .� Therefore, pursuant to the LAUSD decision, the RDA must incorporate ERAF payments into its payment calculations in two ways: (i) Prospectively, beginning with Statutory Payments for the 2011-2012 fiscal year and continuing for all future payments, and leas the three'prior�fiscal yea s�2010 09m2009 08e Di�St�Q08 07.e(See Cale. C de Civn Pro�c. § 338.) Furthermore, the LEA may have entered into one or more pass-through agreements with the RDA that may require the inclusion of ERAF in the LEA's share pursuant to RTC 97.2(d)(5)and 97.3(d)(5). Finally, it is our understanding that under Heaith 8� Safety Code section 34182 (added by AB X1 26), that the county Auditor-Controller must conduct an audit of "each redevelopment agency's assets and liabillties, to document and determine each redevelopment agency's pass-through payment obligations to other taxing agencies, and to document and determine both the amount and the terms of any indebtedness incurred by the redevelopment agency and certify the initial Recognized Obligation Payment Schedule." Desert Community College District hereby requests that the County Auditor- Cantroller review and analyze payments from prior fiscal years when conducting its audit pursuant to Health 8�Safety Code section 34182. We value our relationship with the City, Palm Desert Redevelopment Agency, and Auditor-Controller and look forvvard to continuing to work with you. If you have any questions or require additional information, please contact Mr,Wade W. Ellis at 760-773-2513. Sincerely, �� Wade W. Ellis, CPA Director, Fiscal Services cc� Dolinka Group, LLC THE SU((ESSOR AGENCY TO THE PHl �1 DE5ER1 REDEVElOP �1� H� AGENCV , 73-510 FRED WARING DRIVE PAIM DESERI', CALIFOANIA 92260-25]8 � ' TE�: �60 346—o6t► rnx:76o 34i-637z infoC'palm-dese rc.org � �_ March 8, 2012 . ._ �Y o��c�� aR� n� S '1 -2��2-^ - Palm Springs Unified School District V��2IFIED BY �isa Howell, Assistant Superintendent pri��]o��]��h Caty Clerk's Office Business Services 980 East Tahquitz Canyon Way Palm Springs, CA 92262-0119 Re: Your Letter Demand Dated January 30,2012 for Alleged Delinquent Pre-AB X1 26("AB 26"j Passthrough Payments of Tax increment Revenues This letter responds to your fetter to the Palm Desert Redevelopment Agency ("former agency") dated January 30, 2012 alieging that the former agency miscalculated and underpaid Paim Springs Unified Schooi District pre-AB 26 statutory passthrough payments andlor pre-AB 26 payments under a passthrough agreement, and asserting that the successor agency to the former agency is now responsible for this alleged obligation. Your effort to treat your alleged pre-AB 26 passthrough claim(s) as the responsibility of the successor agency is misplaced. As an initial matter, the duties of successor entities under AB 26 are limited and do not include any obligation to taxing entities in connection with pre-AB 26 passthrough payment claims against a former redeve�opment agency. A successor agency has a duty to pay the "enforceable obligations" of a former agency. However, AB 26 specifically excludes passthrough payments from the definition of enforceable obligations. See Health &Safety Code§34171(d}(1)(D). Your claim for unpaid or underpaid pre-AB 26 passthrough payments is based entirely on the statutory scheme that existed prior to the enactment of AB 26. That statutory scheme has been eliminated with the scheme established in AB 26. "Whenever the Legislature eliminates a statutory remedy 'before a judgment becomes final,' the legislative act 'destroys the right of action.'" Zipperer v. County of Santa Cruz, 133 Cal.App.4th 1013, 1024 (2005) (internal citations omitted). A statutory right or benefit that is not reduced to a final judgment is not a vested right, but is instead merely an "inchoate, incomplete, and unperfected" right, which is subject to legislative abolition. Id. Through AB 26, the Legislature has effectively abolished the former tax increment revenue statutory scheme that gives rise to your claim(s), replacing it with the property tax revenue scheme established under AB 26, including Health &Safety Cade§§ 34172, 34183, and 34188. Upon redevelopment agency dissolution, AB 26 deems all indebtedness of former agencies to be extinguished, exceot that indebtedness that is an enforceable obliaation under AB 26 mav still be�aid. See Health &Safety Code §34974(a). Fiowever, as noted above, passthrough payments are excluded from enforceable obligations under AB 26. Although courts normally construe statutes to operate prospective�y, the courts correlatively hold that when a pending action or claim rests solely on a statutory basis, the withdrawal of that statutory right or remedy without a savings clause wili terminate afl pendinq actions based on that statutory right or remedy. The justification for this rule is that all statutory remedies and benefits are pursued with the full realization that the Legislature may abolish the remedy or right at any time. Rialto Unified School District v. Mann, 18 Cal.3d 819, 829(1977). AB 26 abolishes not just pending claims, but also judgments against :�j nierto oM unnm r�+tP a former redevelopment agency related to passthrough payments, which are also excluded from enforceable obiigations recognized by AB 26. See Health &Safety Code§34171(d)(1)(D}. In addition, as noted above,the successor agency has no duty to taxing entities in connection with claims against the former redevelopment agency based on alleged unpaid or underpayment af pre-AB 26 passthrough payments, or with respect to payment of passthrough obligations on a go forward basis. The county auditor-controller is charged with the duties of conducting an audit to establish the former agency's assets and liabilities, and documenting and determining each former redevelopment agency's passthrough obligations to taxing agencies. See Health& Safety Code§ 34172. The provisions of Health & Safety Code §§ 34183 and 34188 governing the county auditor-controller's distributions of property tax revenues to taxing agencies with property in the project area(s) ("affected taxing agencies°) require the county auditor-controller to distribute property tax revenues and the proceeds of the sale of former agency assets to the affected taxing agencies in accardance with their property tax shares. These provisions do not contemplate a distribution to a particular taxing entity based on a pre-AB 26 claim of unpaid or underpaid passthrough payments. If, contrary to the position set forth in this letter, the county auditor-controller shou�d determine that you have a cognizable claim in connection with pre-AB 26 passthrough obligations, any distribution of property tax revenues that recognizes that claim as enforceable would reduce the amounts to which other affected taxing entities are entitled under the plain language of sections 34183 and 34188. As a result, we are copying the Riverside County Auditor-Controller and the Oversight Board to the Successor Agency to the Palm Desert Redevelopment Agency (once convened), on this letter response, so that they are aware of your claim. The Oversight Board has a fiduciary duty to the affected taxing agencies and may wish to communicate with the County Auditor-Controller in connection with your claim. To the extent that you intend your letter dated January 30, 2012 to Patm Desert Redevelopment Agency to serve as a claim under the California Government Tort Claims Act, it is being returned to you as untimely for the reasons set forth above and because it was not presented within six months after the event or occurrence as required by law. See Section 801 and 911.2 of the Government Code. Because the claim was not presented within the time atlowed by law, no action was taken on the claim. Your only recourse at this time is to apply without delay to the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency, clo Successor to the Palm Desert Redevelopment Agency, 73510 Fred Waring Drive, Palm Desert, CA 92250 for leave to present a late claim. See Sections 911.4 to 912.2, inclusive, and Section 946.6 of the Government Code. Under some circumstances, leave to present a late claim will be granted. See Section 911.6 of the Government Code. You may seek advice of an attorney of your choice in connection with this matter. ff you desire to consult an attorney,you should do so immediately. Sincer I , ohn M.Wohlmuth Executive Director cc: Paul Angulo, CPA MA, Auditor-Controller, Riverside County Auditor-Controller, 4080 Lemon Street, 11`h Floor, Riverside, CA 92502 SUCtESSOR AGENCY TO THE Pfll�l DESERI REUE4flOPMENi AGENCY -z- G:Uda\Veronica Tapia\Word Files\Successor Agencyl3•7-12 letter lo PSUSD re late pess through claim.DOCX .rmitoo�ernaFor+w� ; PALM SPRINGS UNlFIED SCHOOL DISTRICT � a,�..� �1' � 980 EAST TANQUIT2 CANYON WAY � PAIM SPRINGS, CALIFORNIA 92262-0119 (�60) 416-6000 CHRI�TINE J. P�+�DERSOI��`Ed.D., Superintendent of Schoois BOARD OF EDUCATION: RICHARO CLAPP,President-KARENT CORNETT,Clerk JUSTIN BIAKE,Member-GARYJEANDRON,Member-SHAR/STEWAR7,Member i�r�' �'^ ��t� �.. � s 7r �:, p � `"x° ' � i�2 �.., !� ti � f��,� January 30, 2012 ;r,.;� :i ] ��1� � +��►�..Ni ��"....~v �. �. ,^,, Justin McCarthy � � �„ Redevelopment Director Palm Desert Redevelopment Agency � • gy Q�RSIGHT B4ARD 73-510 F�ed Waring Drive Palm Desert, CA 92260 ON �'=�� r ��^ Paui Angulo, CPA, MA VERIFI�.D` BY Auditor-Controiler Original on file with City Clerk's OflFice Riverside County Auditor-Controller 4Q80 Lemon Street, 11th Floor . Riverside, CA 92502 RE: Required Change to Statutory Payment Calculation and Request for Inclusion in County Auditor-Controller's Audit Pursuant to Health and Safety Code§34182 As you know,the California Supreme Court recently upheld Assembly Bill ("AB") X1 26, which orders the dissolution of all redevelopment agencies by February 1, 2012, including the Palm Desert Redevelopment Agency("RDA"). When the RDA dissolves, its existing obligations, including its duty to make proper pass- through payments to the Palm Springs Unified School District("LEA"), will shift to a successor agency. We write to notify you of a required change to the RDA's calculation of statutory payments to the Palm Springs Unified School District pursuant to Health and Safety Code sections 33607.5 and 33607.7 (collectively, "Statutory Payments"). This change reflects a recent appellate court decision, Los Angeles Uni�ed Schoo! District v. County of Los Angeles, et at (2010) 181 Cal.App.4th 414 ("LAUSD Decision"), finding that RDAs improperly excluded Education Revenue Augmentation Fund ("ERAF") payments in catculating the Los Angeles Unified School District's share of Statutory Payments. The California Supreme Court has denied a petition for review by the RDAs, making the LAUSD Decision of precedential effect statewide. As you know, the RDA allocates Statutory Payments to the LEA in "proportion to fhe percentage share of property faxes each affected taxing entity...receives during the fiscal year the funds are aliocated." (See HSC 33607.5, subd.(a)(2).) The LAUSD decision clari�es that RDAs must include ERAF payments in the LEA's "percentage share of property taxes"when calculating Statutory Payments. Therefore, pursuant to the LAUSD decision, the RDA must incorporate ERAF payments into its payment calcutations in two ways: (i) Prospecfively, beginning with Statutory Payments for the 2011-2012 fiscal year and continuing for all future payments, and (ii) Refroactively, requiring the RDA to reimburse the District for the difference in payments for at least . the three prior fiscal years 20010-09, 2009-08, and 2008-07. (See Cal. Code Civ. Proc. §338.) Furthermore,the LEA may have ente�ed into one or more pass-through agreements with the RDA that may require the inclusion of ERAF in the I�EA's share pursuant to RTC 97.2(d)(5} and 97.3(d}(5). Finally, we had previously contracted with a consultant to confirm our redevelopment payments and found that the RDA did not always properly calculate and allocate pass-through payments. It is our understanding that under Health &Safety Code section 34182 (added by AB X1 26),that the county Auditor-Controller must conduct an audit of"each redevelopment agency's assets and liabilities, to document and determine each redevelopment agency's pass-through payment obligations to other taxing agencies, and to document and determine both the amount and the terms of any indebtedness incurred by the redevelopment agency and certify the initial Recognized Obligation Payment Schedule." Palm Springs Unified School District hereby requests that the County Auditor-Contraller review and analyze payments from prior fiscal years when conducting its audit pursuant to Health & Safety Code section 34182. We value our relationship with the City, Palm Desert Redevelopment Agency, and Auditor-Controller and look forward to continuing to work with you. If you have any questions or require additional information, please contact my office at(760)416-6126. Sincerely, �� r-�-� �� Lisa Howell Assistant Superintendenk, Business Services cc: Constance J. 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