HomeMy WebLinkAboutCV Mountain Conservancy Promissory Note Extension •
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OFFICE
To: Honorable Mayor w x v
City Council Members z a% `k
From: Paul S. Gibson, Director of Finance ti
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Subject: Coachella Valley Mountains Conservancy Promissory Noteext n ii 1 ��
Date: August 22, 1996 H
RECOMMENDATION: a F ` \0\ � o
Staff recommends that Council approve request for extension of the promi o n t;If ` t
December 31, 1996. in w •,\ •• H W 5
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BACKGROUND: >4 a w F `n ca w �' '-' v'
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On November 10, 1993,the Coachella Valley Mountains Conservancy(CVO gnu �. :4
promissory note with the City of Palm Desert for$65,000.00 at a rate of 4.510 per annum. This
note was due for payment on April 10, 1995. Due to the Conservancy's budget restraints forcing
cutbacks on staff time,the payment was inadvertently overlooked at that time.
At its September 14, 1995 meeting,the City of Palm Desert City Council approved an extension •.
of the promissory note's due date to December 31, 1995,and forgave the entire penalty.
Currently,the CVMC is not in a position to pay the note. They had expected the Bureau of Land
Management(BLM)would receive a Land and Water Conservation Fund appropriation in 1994
with which to purchase the tax sale parcels from the CVMC. This would have provided funds to
repay the City. However, Congress did not make an appropriation to the BLM last year, and
with the delays in the adoption of the 1996 Federal Budget, CVMC has been put off again in sale
of these parcels to generate the needed revenue to pay off this note.
The amount due for the note as of December 31, 1996 is$73,943.21.
Respectfully submitted, Reviewed and concur,
211i'll
Paul S. Gibson anion A. Diaz- f -1:---i
Director of Finance/City Treasurer City Manager
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PRINCIPAL & INTEREST DUE ON MOUNTAIN CONSERVANCY NOTE
AS OF DECEMBER 31, 1996
PRINCIPAL AMOUNT OF NOTE $ 65,000.00
INTEREST CALCULATION AT 4.5%
PER ANNUM ON PRINCIPAL BALANCE
11/10/93 TO 11/09/94 $ 2,925.00
11/10/94 TO 11/09/95 2,925.00
11/10/95 TO 11/09/96 2,925.00
11/10/96 TO 12/31/96 168.21 8,943.21
$ 73,943.21
•
v ,
COACHELLA VALLEY MOUNTAINS CONSERVANCY
In partnership to protect our mountain heritage ( f-1/
7-71-16e:
•
Governing Board July 26, 1996
City of Cathedral City/
Cply(#11e_sert par Springs
City of Indian Wells Q7 —4
City of La QiiIitta Paul S. Gibson
City of Mahn Desert t7
City of Palm Springs City of Palm Desert r"
City of Rancho Mirage 73-510 Fred Waring Drive j
Gotx•rlars Appointee Palm Desert, CA 92260 r
Stale Senate Appot are
Stale Assembly Apt'oil He Pi
Dear Paul: •
Riverside Cat lt'fy Supervisor
District rn r'rl
lilt erside Caoty Slgn'ndax 7
DLsirt:f IV I want to bring you up to date on the current status of our outstanding promissory note, original>'�.� .�
Ay;Ms Caliette Mt)(, signed in November of 1993. As you know, the City, by action of the City Council, has graciously
of C"'°10r Indians extended the term of this note several times. My records indicate that the most recent extension
State Department of
• Parks ate,Reereatat of the term of the note was in December of 1995, bringing the note term to March 31, 1996. I
r""'((Latx1 M("'t"""n m apologize for our not having contacted you sooner regarding the current status of this promissory
U.S.Forest Sen,ice note.
«7ldlifr Consensual Board
Shale Department of
Fish
and Game
As you may recall, the Conservancy has anticipated funds from the Bureau of Land Management
University of California
Division of Agrielllnre through a Land and Water Conservation Fund appropriation would become available in 1996.
and Natural Resources These funds would allow the BLM to purchase tax default parcels from the Conservancy,providing
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funds for us to repay the City. After many delays as a result of the budget impasse earlier this year,
the LWCF appropriation for 1995/1996 was finally approved in June 1996. The first priority for the
BLM in terms of expenditure of these funds is purchase of tax default parcels from the
Conservancy. We can now be assured that the Conservancy will have the funds necessary to repay
the City. However, due to several complications internal to BLM, it may be three to six months
before the final sale can be completed. It is our intent to repay the City at the earliest possible
time,as soon as these funds become available. I will continue to keep you posted as to the progress
of this transfer of land and monies.
•
In the interim, please let me know if you recommend that we request yet another extension of the
promissory note term. We regret the necessity of these extensions and look forward to completing
this loan with full repayment of the principal and interest due to the City. Thank you again for your
assistance in this matter.
Sincerely,
951.4.±Ctz-
Katie Barrows , .
cc: Buford Crites
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P.O. Box 2855 • Palm Desert, CA 92261-2855 • 619-776-5026 • Fax 619-360-5266
MINUTES
REGULAR PALM DESERT1111,COUNCIL MEETING SEPTEMBER 14, 1995
. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * -* * * *
M. REOUEST FOR APPROVAL of Agreement for Civic Center Park Date Grove Maintenance
(Contract No. C10450).
Rec: By Minute Motion, authorize staff to enter into an agreement with Young's Nursery
for the maintenance of the date trees at the Civic Center Park Date Grove in the
amount of $3,450.00.
N. REOUEST FOR EXTENSION of Contract for Street Sweeping (Contract No. C08980).
Rec: By Minute Motion, authorize a two-year extension of the contract for street
sweeping with Interstate Sweeping, Inc. at a rate of $13.00 per curb mile.
•
O. REQUEST FOR EXTENSION of Contract for Civic Center Park Lagoon Water Quality
Management (Contract No. C05133).
Rec: By Minute Motion, authorize a one-year extension of the maintenance contract with
Southwest Aquatics in the amount of$11,640.00 ($970.00 per month).
P. REOUEST FOR EXTENSION of Promissory Note for Coachella Valley Mountains
Conservancy.
Rec: By Minute Motion, approve the request for extension of the promissory note term
until December 31, 1995, and forgive the 10% penalty.
Q. REOUEST FOR CONTINUATION of Utilization of County of Riverside Transportation
Department for Citywide Street Striping (Contract No. C07430).
Rec: By Minute Motion, authorize staff to continue utilizing the County of Riverside's
Transportation Department staff to Citywide street striping and authorize an amount
not to exceed $100,000 for these services.
R. REOUEST FOR APPROVAL of Construction Change Order No. 01 for Cook Street/I-10
Interchange, Varner Road Relocation (Contract No. C09900).
Rec: By Minute Motion: 1) Approve Construction Change Order No. 01 to Contract No.
C09900 for the Cook Street/I-10 Interchange; Varner Road Relocation for payment
of the addition of 172 feet of 42 inch storm drain in the amount of$19,572.00 and
transfer this amount from contingency to base in Account No. 481-4389-433-4001;
2) appropriate and estimate revenue from CVAG in the amount of $19,572.00 to
the I-10/Cook Street Interchange, Account No. 481-4389-433-4001.
4
MINUTES
REGULAR PALM DESERT. COUNCIL MEETING CIO SEPTEMBER 14, 1995
. s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s
Z. REQUEST FOR CONSIDERATION of Proposed Bradley-Burns Bill of Rights.
Rec: 1) Waive further reading and adopt Resolution No. 95-86 supporting the creation
of the Bradley-Burns Bill of Rights for administration of local sales and use tax by
the Board of Equalization; 2) by Minute Motion, direct the City Clerk to mail a
certified copy of the adopted resolution together with the proposed Bradley-Burns
Bill of Rights to Kathleen Connell, State Controller, and each additional Member
of the Board of Equalization at their local and State Capitol offices.
Councilman Spiegel asked that Items D and G be removed for separate discussion under Section
. IX, Consent Items Held Over, of the Agenda.
Upon motion by Benson, second by Kelly, the remainder of the Consent Calendar was approved
by unanimous vote of the Council.
VII. RESOLUTIONS
Mr. Ortega asked that Resolutions 95-87, 95-88, and 95-89 be continued to the meeting of
September 28, 1995, as bond counsel needed to do some additional work.
A. RESOLUTION NO. 95-87 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, ORDERING REVISION OF AUDITOR'S RECORD
OF REASSESSMENT FOR REFUNDING BONDS FOR ASSESSMENT DISTRICT NO.
83-1 TO INCLUDE INTEREST INSTALLMENTS BASED ON INTEREST RATES SET
FORTH IN THE BOND PURCHASE CONTRACT FOR THE PURCHASE AND SALE OF
REFUNDING BONDS FOR SAID ASSESSMENT DISTRICT, AND PROVIDING FOR
THE COLLECTION OF THE REASSESSMENTS.
Councilman Speigel moved to continue this matter to the meeting of September 28, 1995. Motion
was seconded by Kelly and carried by unanimous vote.
B. RESOLUTION NO. 95-88 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, ORDERING REVISION OF AUDITOR'S RECORD
OF REASSESSMENT FOR REFUNDING BONDS FOR ASSESSMENT DISTRICT NO.
84-1-R TO INCLUDE INTEREST INSTALLMENTS BASED ON INTEREST RATES SET
FORTH IN THE BOND PURCHASE CONTRACT FOR THE PURCHASE AND SALE OF
THE REFUNDING BONDS FOR SAID ASSESSMENT DISTRICT AND PROVIDING FOR
THE COLLECTION OF THE REASSESSMENTS.
Councilman Spiegel moved to continue this matter to the meeting of September 28, 1995. Motion
was seconded by Kelly and carried by unanimous vote.
6
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CITY OF PALM DESERT
INTEROFFICE MEMORANDUM
TO: Honorable Mayor and City Council
FROM: Paul S. Gibson, Director of Finance
SUBJECT: REQUEST FOR EXTENSION ON PROMISSORY NOTE -
COACHELLA VALLEY MOUNTAINS CONSERVANCY
DATE: September 14, 1995
RECOMMENDATION:
Staff recommends that Council approve request for extension of the promissory note term until
December 31, 1995, and forgive the 10%penalty.
BACKGROUND:
On November 10, 1993, the Coachella Valley Mountains Conservancy signed a promissory note
with the City of Palm Desert for$65,000.00 at a rate of 4.5% per annum. This note was due for
payment on April 10, 1995. Due to the Conservancy's budget restraints forcing cutbacks on staff
time, the payment of the promissory note on April 10, 1995 was inadvertently overlooked.
Currently the Conservancy is not in a position to pay the note. They had expected the Bureau of
Land Management (BLM) would receive a Land and Water Conservation Fund appropriation in
1994, with which to purchase the tax sale parcels from the Conservancy; this would have provided
funds to repay the City. Congress did not make an appropriation to the BLM last year for this
purpose. This year, the President's budget contained an appropriation to the BLM for this project,
but final Congressional action has not yet occurred. Interests, such as the Conservancy, have
strong support on the House side and are cautiously hopeful that the final version of the
appropriations bill will provide the needed funding. The BLM would receive the funds sometime
in October or November, and the purchase could then go forward, enabling the Conservancy to
pay the promissory note. The Conservancy is also exploring other sources of funding in the event
Congress does not act favorably.
The amount due for the note as of November 10, 1995 is $73,190.00 plus a penalty of$7,319.00,
for a grand total of$80,509.00.
Respectfully submitted, Reviewed and concur,
Paul S. Gibson Ramon Diaz
Director of Finance Acting City Manager
PSG:rk
4110
COACI-IELLA VALLEY MOUNTAINS CONSERVANCY
In partnership to protect our mountain heritage
August 24, 1995
Governing Board
-•1
City of Cotherkrtl clly I;J-1 -- --I
City of Desert llot Sprit lys •
Clly oJUid nn x'rlls Paul S. Gibson
City of La(It tit ttrl Director of Finance G) C
City['J''iiSmo'"'r' City of Palm Desert `CD
17
Cily of Main Sprit 1
Main73-510 Fred Waring Drive '
G1y of RendIo Mirage * �_
Governors Appointee Palm Desert, CA 92260-2578 =n [.
Stole Set woe Appoillrr
Stole A_csrinbly Al M)(tit lrr CO •
r„
Mira-side C[rinly So Vert tlsrN Re: Payment of Promissory Note due 4/10/95 ,
bistro 111
1711 rrsirk•Cot N ry St q N'rI
District IV Dear Paul:
Ay1N1 Caliente nl Nl[I
of Cnhulllo hIlians
Skit('Deportment of My apologies for the Conservancy's not having contacted you sooner
Parks and Itrrr[anloi,
Lioreo t of iI Nl Mt 1I100YI tell, regarding payment of the promissory note. Budget constraints have
t I.S.Forest S[r1 forced the Conservancy to drastically cut back on staff time, and the
N'ildlifc Cais[•n rnllwtlkxN'I promissory note slipped through the crack as a result.
SlolP DeporlmetN uJ
Mgt)and Game
Lit III rersify of 011ifrrmo
DII qslrx,of Awict ono ire The Conservancy is not currently in a position to pay the note.
WWI Milling IIC5U11lCr•5 Originally, our expectation had been that the Bureau of Land
Management would receive a Land and Water Conservation Fund
appropriation in 1994 with which to purchase the tax sale parcels from
the Conservancy. This would have provided the funds to repay the City.
Unfortunately, Congress did not make an appropriation to the BLM last
year for this purpose. This year, the President's budget contained an
•
• appropriation to the BLM for this project, but final Congressional action
has not yet occurred. The Senate and the House have approved two
different versions of an appropriations bill; the Senate bill contains no
funding for this project. The House and Senate will meet in conference
committee in September to resolve their differences. We have strong
support on the House side and are cautiously hopeful that the final
version of the appropriations bill will provide the needed funding. BLM
would receive the funds sometime in October or November and the
purchase could then go forward, enabling the Conservancy to then pay
the .promissory note. We are also exploring other possible funding
sources in the,event that Congress does not act favorably.
At this time the Conservancy requests an extension of the promissory
note term until December 31, 1995 and asks that the City forgive the •
10% penalty as this would be a significant burden for the Conservancy
and would adversely impact its ability to carry out its conservation
mandate for the public benefit. I would point out that the City will
P.O. 13ux 2855 • Riliu Descrt, CA 92261-2855 • (i19-17(i-5026
receive interest at the prevailing money market rate, and therefore loses
no income by extending the term of the note and rescinding the penalty.
Thanks for your assistance.
Sincerely,
-Z? _ _
B rd Crites
hairman
...........:::............
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, 1. 1$4' N'%
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% ' �$4 City of Palm Desert •
av6..••• 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260-2578
TELEPHONE (619) 346-0611 FAX (619) 340-0574
August 4 , 1995
Ms . Leatha Lockhart, Vice-Chairwoman
Ms . Katie Barrows, Conservancy Staff
Coachella Valley Mountains Conservancy
P. 0. Box 2855
Palm Desert, Ca 92261-2855
Regarding: Payment of Principal, Interest & Penalty
on $65, 000 Promissory Note due 4/10/95
Dear Ms . Lockhart and Ms . Barrows :
This is letter serves as a confirmation of our conversation today
regarding the promissory note of $65,000,00, signed and dated on
November 10, 1993 by Ms . Leatha Lockhart that was due for payment
on April 10, 1995 . Total amount due with interest and penalty is
$80,509 . 00 calculated as follows based on the note agreement:
Principal Amount $ 65, 000 . 00
4 . 5% Interest Per Annum for
period of : 11/10/93-11/09/94 2, 925 . 00
11/10/94-11/09/95 2, 925 . 00
11/10/95-07/10/95 2, 340 . 00
Sub-total $ 73, 190 . 00
10% Penalty 7, 319 . 00
Total due $ 80,509 . 00
Please expedite payment in full to comply with the terms and
1 agreement of the note, a copy of which is attached.
Siinncerely,,Z
/; —
Paul S . Gibson
Director of Finance
attachments
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wp51\pegltrs\mtncnant
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nervosa
410
PALM DESERT
FI ANCE DEPARTti1ENT
PROMISSORY NOTE ,93 DEC 6 fill 8 15
$ S65. 000. 00 Palm Desert, California
November 10, 1993
The COACHELLA VALLEY MOUNTAINS CONSERVANCY, a public agency
("Promisor") , promises to pay to the order of the CITY OF PALM
DESERT, CALIFORNIA (the "Payee") at the principal office of the
Payee located at 73-510 Fred Waring Drive, Palm Desert, California
92260, or at such other place as the Payee may direct in writing,
the sum of Sixty-Five Thousand Dollars ($65, 000. 00) with interest
from November 10, 1993, on the unpaid principal at the rate of Four
and one-half Percent (4.5%) per annum. Unpaid principal after the
Due Date shown below shall accrue interest at the rate of Four and
One-Half Percent (4.5%) per annum until paid.
On or before April 10, 1995, (the "Due Date") , the principal and
accrued interest shall be due and payable in full. All payments on
the Note shall be applied first in payment of accrued interest and
any remainder in payment of principal.
If the Note is not paid by the Due Date, or if an installment
is not paid when due, the Promisor promises to pay all costs of
collection, including reasonable attorney's fees, whether or not a
lawsuit is commenced as part of the collection process. A ten
percent (10%) penalty shall be assessed if installments are not
paid when due.
The Promisor reserves the right to prepay this Note in whole
or in part prior, to the Due Date with no prepayment penalty.
No renewal or extension of this Note, delay in enforcing any
right of Payee under this Note, or assignment by Payee of this
Note, shall affect the liability of the Promisor. All rights of
the Payee under this Note are cumulative and may be exercised
concurrently or consecutively at the Payee's option. Promisor
waives the following: notice of default or delinquency; notice of
acceleration; notice of nonpayment; notice of costs, expenses and
losses and interest thereon; notice of interest on interest and
late chargos; diligence of Payee in taking any action to collect
any sums owing under the Note; the benefits of all waivable
extension or extensions of time of payment or of any due date under
this Note, .in whole or in part, whether or after maturity and with
or without notice. Payee shall not be deemed to have waived any of
its rights under this Note as to any default by Promisor because of
Payee's failure to take any action with respect to any particular
prior default of Promisor.
This Note shall be construed in accordance with the laws of
the State of California. Any legal action on or in connection with
this Note shall be brought in an appropriate Court of the County of
PROXISSORY NOTE - CeOFF PALM DESERTSe .
PAGE 2 •
Riverside.
If any one or more of the provisions of this Note are
determined to be unenforceable, in whole or in part, for any
reason, the remaining provisions shall remain fully operational.
All payments of principal and interest on this Note shall be
paid in the legal currency of the United States of America.
Time is of the essence in this Note.
Any notice delivered or required to be delivered hereunder
shall be in writing and delivered to the following addresses:
If to Payee: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: City Manager
With a Copy to: David J. Erwin, City Attorney
c/o Best, Best & Krieger
39700 Bob Hope Drive, Suite 312
Rancho Mirage, CA 92270
If to Prnmif or: rnrwr,hollw Vrlllists Memntsina
►LIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.6103
State of C��� l Q . mom OPTIONAL SECTION Nam
CAPACITY CLAIMED BY SIGNER
County of Tough statute does rot require the Notary to
fill In the data below. doing so may prove
• inveMabb topersons retying on the documut l
On 1 I13OJn� before me,- • 4J ifilb• ! i ' 0 , . 0 INDIVIDUAL
' ! - ,, h� ,,cfnc L EA.' �I 0 CORPORATE OFFICER(S)
personally appeared a` �w,'
Ni(s)OF R$ONER(8) mtE(s)
❑personally known to me-OR proved to me on the basis of satisfactory evidence ❑PARTNER(S) 0 LIMITED
to be the person(J) whose name( is/ars. El GENERAL
subscribed to the within instrument and ace 0 ATTORNEY-IN FACT
knowledged to me that lis/she/tt eye executed 0 TRUSTEE(S)
the Same in laic/her/tom authorized 0 GUARDIAN/CONSERVATOR
capacity(isy, and that by-his/her/Owif
❑OTHER:
SUSAN Mp�cHEIMER signature( on the Instrument the person(s),
coMM•*997� I or the entity upon behalf of which the
-+•• Notary Pubic-California
RIVERSIDE coulYTY person( acted, executed the instrument. ✓
. �, ,m,Expires JUN lb.1997 SIGNER IS REPRESENTING:
WITNESS my hand and official seal. NAME of PERSON(s)OR Et11TTY(IES)
L-5A-0a-i- ina4Civ),i...vitI2A
SKiNATt1RE OF NOTARY
IN OPTIONAL SECTIONtr v)) JJ --
THIS CERTIFICATE MUST BE ATTACHED TO T)TLE OR TYPE OF DOCUMENT ' rrn-A-d0 / �� )-C
THE DOCUMENT DESCRIBED AT RIGHT: n
NUMBER OF PAGES DATE OF DOCUMENT ./ / - /0 -```3
Thot.gh the data requested here Is not required by taw, n,8-�
h mufti prevent fraudulent reattachment dw ta form, SIGNER(S)OTHER THAN NAMED ABOVE
es- _
eloq?NAT104.IAt fK7T'.Ay ASSOCIATION•R239 Rommel Ave.,P.O.Box 7184•Canoga Pork.CA 91309-7164