Loading...
HomeMy WebLinkAboutRes OB-065 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF RESOLUTION NO. OB - 065 APPROVING THE EXECUTION OF THE FREEDOM DOG PARK EXPANSION PROJECT FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGNECY TO THE PALM DESERT REDEVELOPMENT AGENCY AND THE CITY OF PALM DESERT. SUBMITTED BY: Ryan Stendell, Senior Management Analyst DATE: February 24, 2014 CONTENTS: Conceptual Design Resolution No. OB - 065 Draft Reimbursement Agreement (C 33250B Recommendation ) By Minute Motion that the Oversight Board waive further reading and adopt Resolution No. OB - 065 approving the execution of a Freedom Dog Park Project Bond Proceeds Funding Agreement between the Successor Agency to the Palm Desert Redevelopment Agency and the City of Palm Desert and taking certain related action. The estimated cost of $100,000.00 is included on ROPS 13-14B from Project Area 4 Bond Funds. Background Completed in 2008, Freedom Park was designed and constructed primarily from Project Area 4 bond funds. Totaling 27-acres Palm Desert residents enjoy access to the City's only regional park in the north -sphere of the city. Regional Parks have a city-wide service area and are intended to provide the maximum amount of recreation in one facility. Serving the entire City, Regional Parks provide ample parking to accommodate incoming park users. Freedom Park has certainly been a success from its opening. However, the current dog park is severely undersized. Due to the users reluctance to use this facility we are seeing a fair amount of congestion at the City's remaining dog parks. Users continually indicate that they will not use Freedom Dog Park as it is not big enough. In reviewing the site, staff has developed an expansion plan that will create a Dog Park which is commensurate with a Regional Park. Users have indicated that they would use this facility if it were enlarged per staff's proposal. The eventual facility would provide both a large and small dog side and would be a similar size to our larger dog parks. This will help meet the need for this type of facility in the north -sphere. Staff Report Freedom Dog Park Expansion Page2of3 February 24, 2014 Contract No. C33250B Costs of the total project are estimated not to exceed $100,000.00 broken down as follows: 1. Fencing Improvements: $55,000 2. Lighting Upgrades: $20,000 3. Shade Structure: $20,000 4. Landscape Improvements: $5,000 Staff recommends approval of the Freedom Dog Park Expansion Project Bond Proceeds Funding Agreement between the Successor Agency and Housing Authority and taking certain related actions. Fiscal Analysis Pursuant to dissolution law, only existing contracts have been eligible for payment from ROPS, until a Finding of Completion is received by the Successor Agency. The DOF issued our Finding of Completion on May 15, 2013, which provides the ability for the Successor Agency to utilize existing bond funds for the purpose in which they were issued. The estimated cost for the project ($100,000) is included on ROPS 13-14B line 184. Although the City would initially advance the funds for this work, it is the intention of the Successor Agency to reimburse the City for the costs from bond proceeds which include a project for Community Facility improvements in the bond covenant. Prepared By: yan Stendell Senior Management Analyst Reviewed and Concur: .../...„.„---",/ Paul S. Gibson, Director of Finance J hn M. Wohlmuth xecutive Director of the Successor Agency of the Palm Desert Redevelopment Agency (5-O , Q>Pa.rci-1 , 1'25E4 P SG,„1 r 1 (r ✓ , BY OVERSIGHT BOARD ON TX' a-+ I I+ VERIFIED BY R . _ -- J Original on file with City Clerks Office uoilduosaa den Ja1u3 Z 0 N rn v O RESOLUTION NO. OB - 065 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF AN FREEDOM DOG PARK PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 4), Series 2001 (the "PA4 2001 Bonds") for the purpose of financing and refinancing redevelopment projects of benefit to Project Area No. 4 (the "Project Area") of the former Palm Desert Redevelopment Agency (the "Former RDA"). B. The PA4 2001 Bonds were issued pursuant to the Indenture of Trust, dated as of November 1, 2001, by and between the Financing Authority and BNY Western Trust Company (as later succeeded by Wells Fargo Bank, National Association, as trustee (the "Trustee"). C. Pursuant to the Project Area No. 4 Loan Agreement, dated as of November 1, 2001 (the "Loan Agreement"), by and among the Financing Authority, the Former RDA, and the Trustee, proceeds of the 2001 Bonds were loaned to the Former RDA (the "Loan"). D. The Former RDA caused a portion of the proceeds of the 2001 Bonds received as part of the Loan to be deposited into a Project Fund (the "PA4 2001 Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan Agreement. E. Pursuant to the Loan Agreement, moneys in the PA4 2001 Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 4 (the "Project Area"). F. As documented by the Official Statement, dated November 15, 2001, it was intended, at the issuance of the PA4 2001 Bonds, that the projects to be financed from moneys deposited in the 2001 Project Fund include, among others, the FREEDOM DOG PARK EXPANSION project (including fencing modifications, landscaping, lighting and other related improvements) (the "FREEDOM DOG PARK EXPANSION Project"). G. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231 (2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. 12812-0001\1610500.1 1 RESOLUTION NO. OB - 065 H. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." I. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2001 Bonds remaining in the PA4 2001 Project Fund (the "PA4 2001 Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. J. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the PA4 2001 Bond Proceeds shall be used for the purposes for which the 2001 Bonds were sold, in a manner consistent with the original bond covenants. K. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. L. There remains a balance of PA4 2001 Bond Proceeds in the 2001 Project Fund (in the amount of $4,673,654 as of December 31, 2013). M. The Successor Agency desires to use a portion of the PA4 2001 Bond Proceeds for completion of work with respect to the Project. N. Pursuant to HSC Section 34177(1), the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period ("ROPS Period"). The ROPS must be submitted to the Oversight Board of the Successor Agency (the "Oversight Board") and the DOF for approval. O. Pursuant to HSC Section 34191.4(c)(2), the expenditure of 2001 Bond Proceeds for an obligation must be listed on a ROPS. P. Listed as Item No.184 on the ROPS 13-14B is the anticipated use of the PA2 2006 Bond Proceeds for the Project. Q. The Oversight Board adopted Resolution No. OB-050, on September 10, 2013, approving ROPS 13-14B. The Oversight Board -approved ROPS 13-14B was submitted to the DOF for review. R. DOF issued its letter dated December 17, 2013, confirming the DOF's approval of Item No. 184 of ROPS 13-14B, subject to the modification that the ROPS 13-14B Period funding amount for the Project (the "ROPS 13-14B Project Estimate") be changed pursuant to a revised schedule submitted by the Successor Agency during the DOF review process (the "Revised Schedule"). Per the Revised Schedule, the ROPS 13-14B Project Estimate is $100.000.00. RESOLUTION NO. OB - 065 S. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into this Agreement, for the City to perform or cause to be performed all work required to complete the Project, with payment therefor to be made from the 2001 Bond Proceeds. T. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the Oversight Board, the Successor Agency may enter into agreements with the City. U. Resolution No. OB - 065 adopted by the Oversight Board on , 2014 approving the Successor Agency's execution and delivery of this Agreement was approved [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2014. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Freedom Dog Park Proiect Bond Proceeds Funding Agreement. The Freedom Dog Park Project Bond Proceeds Funding Agreement, in the form attached hereto as Exhibit A, is hereby approved. Each of the Chair of this Board, the Vice Chair of this Board and the Executive Director of the Successor Agency (each, an Authorized Officer"), individually, is hereby authorized to execute and deliver, for and in the name of the Successor Agency, the Freedom Dog Park Project Bond Proceeds Funding Agreement, in substantially such form, with changes therein as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 3. Request for Oversiaht Board Approval. The Oversight Board is hereby requested to approve the Successor Agency's execution and delivery of the Freedom Dog Park Project Bond Proceeds Funding Agreement. The Secretary of the Successor Agency is hereby directed to transmit this Resolution to the Oversight Board for consideration at the earliest possible date. Section 4. Other Acts. The Authorized Officers and all other officers of the Successor Agency are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the Freedom Dog Park Project Bond Proceeds Funding Agreement. RESOLUTION NO. OB - 065 Section 5. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this day of , 2014. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RES. NO. OB - 065 EXHIBIT A FREEDOM DOG PARK EXPANSION PROJECT BOND PROCEEDS FUNDING AGREEMENT This FREEDOM DOG PARK EXPANSION PROJECT BOND PROCEEDS FUNDING AGREEMENT (this "Agreement"), dated as of . 2014, is entered into by and between the City of Palm Desert (the "City") and the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency," and together with the City, the "Parties"). RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 4), Series 2001 (the "PA4 2001 Bonds") for the purpose of financing and refinancing redevelopment projects of benefit to Project Area No. 4 (the "Project Area") of the former Palm Desert Redevelopment Agency (the "Former RDA"). B. The PA4 2001 Bonds were issued pursuant to the Indenture of Trust, dated as of November 1, 2001, by and between the Financing Authority and BNY Western Trust Company (as later succeeded by Wells Fargo Bank, National Association, as trustee (the "Trustee"). C. Pursuant to the Project Area No. 4 Loan Agreement, dated as of November 1, 2001 (the "Loan Agreement"), by and among the Financing Authority, the Former RDA, and the Trustee, proceeds of the 2001 Bonds were loaned to the Former RDA (the "Loan"). D. The Former RDA caused a portion of the proceeds of the 2001 Bonds received as part of the Loan to be deposited into a Project Fund (the "PA4 2001 Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan Agreement. E. Pursuant to the Loan Agreement, moneys in the PA4 2001 Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 4 (the "Project Area"). F. As documented by the Official Statement, dated November 15, 2001, it was intended, at the issuance of the PA4 2001 Bonds, that the projects to be financed from moneys deposited in the 2001 Project Fund include, among others, the FREEDOM DOG PARK EXPANSION project (including fencing modifications, landscaping, lighting and other related improvements) (the "FREEDOM DOG PARK EXPANSION Project"). G. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231 (2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. H. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." -1- 12812-0001\1685525.3 RES. NO. OB - 065 Contract No. C33250B I. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2001 Bonds remaining in the PA4 2001 Project Fund (the "PA4 2001 Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. J. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the PA4 2001 Bond Proceeds shall be used for the purposes for which the 2001 Bonds were sold, in a manner consistent with the original bond covenants. K. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. L. There remains a balance of PA4 2001 Bond Proceeds in the 2001 Project Fund (in the amount of $4,673,654 as of December 31, 2013). M. The Successor Agency desires to use a portion of the PA4 2001 Bond Proceeds for completion of work with respect to the Project. N. Pursuant to HSC Section 34177(1), the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period ("ROPS Period"). The ROPS must be submitted to the Oversight Board of the Successor Agency (the "Oversight Board") and the DOF for approval. O. Pursuant to HSC Section 34191.4(c)(2), the expenditure of 2001 Bond Proceeds for an obligation must be listed on a ROPS. P. Listed as Item No. 184 on the ROPS 13-14B is the anticipated use of the PA2 2006 Bond Proceeds for the Project. Q. The Oversight Board adopted Resolution No. OB-050, on September 10, 2013, approving ROPS 13-14B. The Oversight Board -approved ROPS 13-14B was submitted to the DOF for review. R. DOF issued its letter dated December 17, 2013, confirming the DOF's approval of Item No. 184 of ROPS 13-14B, subject to the modification that the ROPS 13-14B Period funding amount for the Project (the "ROPS 13-14B Project Estimate") be changed pursuant to a revised schedule submitted by the Successor Agency during the DOF review process (the "Revised Schedule"). Per the Revised Schedule, the ROPS 13-14B Project Estimate is $100,000.00. S. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into this -2- 12812-0001\1685525.3 Contract No. C33250B RES. NO. OB - 065 Agreement, for the City to perform or cause to be performed all work required to complete the Project, with payment therefor to be made from the 2001 Bond Proceeds. T. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the Oversight Board, the Successor Agency may enter into agreements with the City. U. Resolution No. adopted by the Oversight Board on , 2014 approving the Successor Agency's execution and delivery of this Agreement was approved [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2014. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. Subject to the provisions of this Agreement and with the funding provided pursuant to this Agreement, the City agrees to perform or cause to be performed all work required for the completion of the Project, including but not limited to the preparation of designs, plans and specifications and all acquisitions, demolitions, construction and installations. The City shall perform such work in accordance with all applicable federal, state and local laws, rules and regulations. Subject to the covenants set forth herein, the City shall have the sole discretion with respect to the design, planning, specification and the timing with respect to all components of the Project. Section 2. As soon as practical upon the Parties' execution of this Agreement, the Successor Agency shall transfer to the City an amount equal to the ROPS 13-14B Project Estimate from the PA4 2001 Bond Proceeds on deposit in the PA4 2001 Project Fund. Section 3. (a) The Parties acknowledge and agree that the PA4 2001 Bond Proceeds shall be the sole source of the Successor Agency's payment for the completion of the Project pursuant to this Agreement. The Parties also agree that the City's obligation with respect to the work for the Project under this Agreement shall be limited to the extent that funding therefor is available from the PA4 2001 Bond Proceeds. (b) At any time, if the City determines that the amount previously transferred by the Successor Agency pursuant to this Agreement is insufficient for the completion of the Project, the City's Finance Director shall notify the Successor Agency, specifying the estimated dollar amount necessary for the completion of the Project (the "Additional Funding Amount"). To the extent that sufficient unspent PA4 2001 Bond Proceeds remain available, the Successor Agency shall list the Additional Funding Amount on the ROPS for the next available ROPS Period. Upon obtaining the Oversight Board's and the DOF's approval for such ROPS item(s), the Successor Agency shall transfer or caused to be transferred to the City the Additional Funding Amount from the PA4 2001 Bond Proceeds as soon as practicable upon the commencement of the applicable ROPS Period. (c) Before the transfer of any Additional Funding Amount pursuant to Section 3(b) above, the City may, but is not obligated to, advance funds from sources available to City for the work necessary for the Project (each such advance being a "City Advance"). Any Additional Funding Amount transferred by the Successor Agency pursuant to Section 4(b) shall -3- 12 812-0001 \ 168 5 52 5.3 RES/ MP/ OB - 065 Contract No. C33250B first be used to reimburse the City for outstanding City Advances, and then to pay for other expenditures of the Project. Section 4. To the extent the City still holds unspent PA4 2001 Bond Proceeds transferred pursuant to this Agreement after the completion of the Project (as determined by the legislative body of the City), the City shall return such unspent PA4 2001 Bond Proceeds to the Successor Agency within a reasonable time after such determination. Section 5. The City covenants that it shall use the PA4 2001 Bond Proceeds in a manner consistent with the covenants in the Loan Agreement and the related Certificate Regarding Arbitrage, Use of Proceeds and Related Matters, dated as of November 28, 2001, including, but not limited to, any covenants regarding the tax-exempt status of interest on the 2001 Bonds under the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. Section 6. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 7. The Parties agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 8. This Agreement may be amended from time to time by written instrument executed by both Parties. Section 9. No official, agent, or employee of the Successor Agency or the City, or members of the City Council, or members of the Successor Agency Board of Directors or Oversight Board shall be individually or personally liable for any payment hereunder in the event of any default or breach by the Successor Agency or the City, or for any amount which may otherwise become due to the City or Successor Agency, or successor thereto, or on any obligations under the terms of this Agreement. Section 10. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. JREMAINDER OF PAGE INTENTIONALLY LEFT BLANK;, SIGNATURES TO FOLLOW] -4- 12812-0001\1685525.3 RES. NO. OB — 065 Contract No. C33250B IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By JOHN M. WOHLMUTH, EXECUTIVE DIRECTOR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT By ATTEST: RACHELLE D. KLASSEN, CITY CLERK APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By VAN G. TANNER, MAYOR ROBERT A. SPIEGEL, CHAIR Date: -5- 12812-0001 \ 168 5525.3