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HomeMy WebLinkAboutRes OB-119 (2)OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation APPROVE RESOLUTION NO. OB-119, A RESOLUTION APPROVING THE EXECUTION OF AN AGREEMENT REGARDING 170-ACRE SITE CONSULTANT WORK AND COSTS BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT (CONTRACT NO. C34120A) Tony Bagato, Principal Planner February 23, 2013 Resolution No. OB-119 Agreement Regarding 170-Acre Site Consultant Work and Costs (CONTRACT NO. C34120A) Waive further reading, and adopt Resolution No. OB-119, approving the execution of an Agreement Regarding 170-Acre Site Consultant Work and Costs between the Successor Agency and the City of Palm Desert (the "City"). (CONTRACT NO. C34120A) Background On June 2, 2014, the State Department of Finance (the "DOF") approved the Successor Agency's Long Range Property Management Plan ("LRPMP"). The LRPMP addresses the disposition of the real property assets of the former Palm Desert Redevelopment Agency, which have been transferred to the Successor Agency by operation of law. Listed on the LRPMP as Property Nos. 9(a) through 9(m) is a vacant 170-acre parcel of land bounded on the south by Frank Sinatra Drive, on the west by Portola Avenue, and on the north and east by entitled, but undeveloped, residential tracts (the "Property"). See image on the next page. The LRPMP provides that the Successor Agency will sell the Property at appraised value and the proceeds from the sale of the Property will be disbursed to the taxing entities. Currently under the City's General Plan, the Property is designated for use as open space for recreation purposes only and, as much, has little or no market value without a change in the zoning designation under the General Plan. In order to accomplish a sale of the Property as contemplated under the LRPMP and enable the Property sale proceeds to be disbursed to the taxing entities, the Successor Agency is taking steps to cause a change to the zoning designation of the Property under the General Plan. Staff Report Agreement Regarding 170-Acre Site Consultant Work and Costs Page 3 of 3 February 23, 2015 report for the zoning change by January 2016, concurrent with the completion of the General Plan update. Fiscal Analysis The Successor Agency plans to make payments under the Agreement from moneys available from the Successor Agency's Redevelopment Property Tax Trust Fund (the "RPTTF"). The Successor Agency may only make payments that are listed on a DOF- approved Recognized Obligation Payment Schedule ("ROPS"). Already listed on the DOF- approved ROPS 14-15B (i.e., the ROPS for the six-month period commencing January 1, 2015) as Item No. 190 is $100,000 for costs associated with the disposition of assets. Pursuant to the Agreement, RPTTF moneys already received and allocable to Item No. 190 will be used to pay the Consultant Work costs during the ROPS 14-15B Period. The Successor Agency has included on the ROPS 15-16A (Le., the ROPS for the six-month period commencing July 1, 2015), as Item No. 190, an amount of $250,000 for the anticipated Consultant Work and other disposition costs during the ROPS 15-16A Period. STP has given an estimate of $279,411 for the Consultant Work relating to the zoning change for the Property. Staff believes that this quote is consistent with industry standard costs for similar work. Adding a ten percent contingency, Staff currently expects that the total cost to complete all of the Consultant Work will not exceed $310,000. Prepared by: (7 C-4,4 11 Tony Bagato, Principal Planner AnDroval: n M. N17ohlmuth, ecutive Director Reviewed by: Martin Afvarez, Director of Economic Development La'costa, Assis nt City Manager Paul Gibson, (5_a_1 , Q J (p,,� 1 ectorof Finance BY OVERS16-11 Bi-O nARDPE ON 2-- 4))— 9-0(� VERIFIED Original on file with City Clerk's Office \\SRV-FIL2K3\groups\Planning\Tony Bagato\Staff Reports\170-Acre Specific Plan\Palm Desert - OB staff report re agrrnt re 170-acre site consultant work .docx RESOLUTION NO. OB-119 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF AN AGREEMENT REGARDING 170- ACRE SITE CONSULTANT WORK AND COSTS BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT RECITALS: A. Pursuant to AB X1 26 (enacted in 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 Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012, the Successor Agency was established and the Oversight Board to the Successor Agency (the "Oversight Board") was constituted. B. AB 1484 (enacted in June 2012) amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to herein as the "Dissolution Act." C. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets of the Former Agency, including that certain real property sometimes referred to as the 170-Acre Site (the "Property") — consisting of undeveloped land in the City bounded by Frank Sinatra Drive on the south, Portola Avenue on the west, and College Drive on the north and east — transferred to the control of the Successor Agency by operation of law. D. The Property is identified as Property Nos. 9(a) through 9(m) on the Successor Agency's Long Range Property Management Plan (the "LRPMP"). The LRPMP has been approved by the Oversight Board and the California State Department of Finance ("DOF"), as indicated in the DOF's related June 2, 2014 approval letter. E. HSC Section 34191.3 provides that, after the DOF has approved the LRPMP pursuant to HSC Section 34191.5(b), the LRPMP shall supersede all other provisions of the Dissolution Act relating to the disposition and use of the real property assets of the Former Agency. F. The LRPMP provides that the Successor Agency shall sell the Property at appraised value and the proceeds from the sale of the Property shall be disbursed to the taxing entities in accordance with HSC Section 34191.5(c)(2)(B). G. The Successor Agency is required to take necessary and appropriate actions to effect a sale of the Property in a manner consistent with the LRPMP. 12812.0001 U 800422.1 1 RESOLUTION NO. OB-119 H. Currently under the City's General Plan, the Property is designated for use as Open Space for recreation purposes only and, as much, has little or no market value without a change in the zoning designation under the General Plan. I. In order to accomplish a sale of the Property as contemplated by the LRPMP and enable the Property sale proceeds to be disbursed to the taxing entities, the Successor Agency is taking steps to cause a change to the zoning designation of the Property under the General Plan. J. The zoning change process requires the engagement of one or more consultants (the "Consultants") to, among other things, prepare proposed specific plan, environmental review documents and related reports (collectively, the "Consultant Work"). K. As between the City and the Successor Agency, the City has the resources (with respect to the staffing and established procedures) to manage contracts and otherwise coordinate with the Consultants and other third parties in connection with the Consultant Work. L. The Successor Agency and the City desire to enter into an Agreement Regarding 170-Acre Site Consultant Work and Costs (the "Agreement"), substantially in the form attached as Exhibit A, for the City to engage the Consultants for the Consultant Work, with payment therefor to be made from the funds available to the Successor Agency. M. Pursuant to HSC Sections 34178(a) and 34180(h), the Successor Agency may enter into agreements with the City with the Oversight Board's approval. 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. Agreement Regarding 170-Acre Site Consultant Work and Costs. This Oversight Board hereby approves the Successor Agency's execution and delivery of the Agreement, substantially in the form attached hereto as Exhibit A. Section 3. Other Acts. The members of this Oversight Board and the staff of the Successor Agency are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the Agreement. RESOLUTION NO. OB-119 PASSED, APPROVED AND ADOPTED this day of , 2015. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. OB-119 CONTRACT NO. C34120A EXHIBIT A Agreement Regarding 170-Acre Site Consultant Work and Costs (in substantial final form) (see attached) 128 12.0001 \ 1800422.1 RESOLUTION NO. OB-119 CONTRACT NO. C34120A AGREEMENT REGARDING 170-ACRE SITE CONSULTANT WORK AND COSTS This AGREEMENT REGARDING 170-ACRE SITE CONSULTANT WORK AND COSTS (this "Agreement"), dated as of , 2015, is entered into by and between the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") and the City of Palm Desert (the "City'', and together with the Successor Agency, the "Parties"). RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (201 1), the Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012, the Successor Agency was established and the Oversight Board to the Successor Agency (the "Oversight Board") was constituted. B. AB 1484 (enacted in June 2012) amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to herein as the "Dissolution Act." C. Pursuant to Section 34175(b) of the California I Iealth and Safety Code ("HSC"), all assets of the Former Agency, including that certain real property sometimes referred to as the 170-Acre Site (the "Property") — consisting of undeveloped land in the City bounded by Frank Sinatra Drive on the south, Portola Avenue on the west, and College Drive on the north and east — transferred to the control of the Successor Agency by operation of law. D. The Property is identified as Property Nos. 9(a) through 9(m) on the Successor Agency's Long Range Property Management Plan (the "LRPMP"). The LRPMP has been approved by the Oversight Board and the California State Department of Finance ("DOF"), as indicated in the DOF's related June 2, 2014 approval letter. E. HSC Section 34191.3 provides that, after the DOF has approved the LRPMP pursuant to HSC Section 34191.5(b), the LRPMP shall supersede all other provisions of the Dissolution Act relating to the disposition and use of the real property assets of the Former Agency. F. The LRPMP provides that the Successor Agency shall sell the Property at appraised value and the proceeds from the sale of the Property shall be disbursed to the taxing entities in accordance with HSC Section 34191.5(c)(2)(B). G. The Successor Agency is required to take necessary and appropriate actions to effect a sale of the Property in a manner consistent with the LRPMP. H. Currently under the City's General Plan, the Property is designated for use as Open Space for recreation purposes only and, as much, has little or no market value without a change in the zoning designation under the General Plan. -1- 12812.0001 \ 1800420.1 RESOLUTION NO. OB-119 CONTRACT NO. C34120A 1. In order to accomplish a sale of the Property as contemplated by the LRPMP and enable the Property sale proceeds to be disbursed to the taxing entities, the Successor Agency is taking steps to cause a change to the zoning designation of the Property under the General Plan. J. The zoning change process requires the engagement of one or more consultants (the "Consultants") to, among other things, prepare proposed specific plan, environmental review documents and related reports (collectively, the "Consultant Work"). K. As between the City and the Successor Agency, the City has the resources (with respect to the staffing and established procedures) to manage contracts and otherwise coordinate with the Consultants and other third parties in connection with the Consultant Work. L. The Successor Agency and the City desire to enter into this Agreement, for the City to engage the Consultants for the Consultant Work, with payment therefor to be made from the funds available to the Successor Agency. M. Based on current estimates, the total Consultant Work costs (including an approximately ten percent contingency amount) will not exceed $310,000. N. Pursuant to HSC Section 34177(1), the Successor Agency is required to prepare a Recognized Obligation Payment Schedule ("ROPS"), listing the Successor Agency's enforceable obligations and the related estimated dollar amounts to be paid by the Successor Agency for each six month fiscal period (commencing January 1 and July 1, respectively) (each, a "ROPS Period"), and submit each Oversight Board -approved ROPS to the DOF for approval. O. The Successor Agency previously prepared a ROPS ("ROPS 14-15B") for anticipated payments covering the period from January 1, 2015 through June 30, 2015 (the "ROPS 14-15B Period"), and a ROPS ("ROPS 15-16A") for anticipated payments covering the period from July 1, 2015 through December 31, 2015 (the "ROPS 15-16A Period"). P. Item No. 190 on ROPS 14-15B, as approved by the DOF, is $100,000 for costs associated with the disposition of assets. Item No. 190 is intended to include the costs such as those for the Consultant Work. As indicated on ROPS 14-15A, Item No. 190 is to be paid from moneys disbursed by the County Auditor -Controller from the Redevelopment Property Tax Trust Fund (the "RPTTF") on January 2, 2015 for ROPS 14-15B Period (the "ROPS 14-15B RPTTF Disbursement"). Q. Item No. on ROPS 15-16A, as approved by the DOF, is I$ I for the costs of Consultant Work expected to become payable during the ROPS 15-16A Period (the "ROPS 15-16A Estimate"). As indicated on ROPS 15-16A, Item No. will be paid from moneys disbursed by the County Auditor -Controller from the RPTTF on June 1, 2015 for ROPS 15-16A Period (the "ROPS 15-16A RPTTF Disbursement"). R. Pursuant to HSC Sections 34178(a) and 34180(h), the Successor Agency may enter into agreements with the City with the Oversight Board's approval. -2- 12812.0001 \ 1800420.1 RESOLUTION NO. OB-119 CONTRACT NO. C34120A S. The Oversight Board adopted its Resolution No. on , 2015 (the "Oversight Board Resolution"), approving the Successor Agency's execution and delivery of this Agreement. T. The Oversight Board Resolution was [approved] [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2015. 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 engage one or more Consultants to perform the Consultant Work. The City shall require the Consultants to perform the Consultant Work in accordance with applicable local, state and federal laws, rules and regulations. Subject to the provisions set forth herein, the City shall have the sole discretion with respect to the selection of each Consultant, and the scope, manner and timing of the work under and all other terms of the respective contracts with the Consultants (the "Consultant Contracts"). Section 2. As soon as practical upon the execution of this Agreement by the Parties (and in any case upon the demand of the City before the end of ROPS 14-15B Period), the Successor Agency shall transfer to the City $ from the portion of the ROPS 14-15B RPTTF Disbursement allocable to Item 190. Such amount transferred pursuant to this Section 2 is the dollar amount estimated to become payable to the Consultants under the Consultant Contracts during the ROPS 14-15B Period. Section 3. At the commencement of the ROPS 15-16A Period, the Successor Agency shall transfer to the City the amount of the ROPS 15-16A Estimate, subject to the availability thereof based on the ROPS 15-16A RPTTF Disbursement. Section 4. At any time, if the City determines that the amount previously transferred by the Successor Agency pursuant to this Agreement is insufficient to make payments under the Consultant Contracts for the completion of the Consultant Work, the City's Finance Director shall notify the Successor Agency, specifying the estimated dollar amount that will become payable through the end of the immediately next ROPS Period (the "Additional Costs"). The Successor Agency shall list the appropriate Additional Costs on the ROPS for the next available ROPS Period. Subject to the Oversight Board's and the DOF's approvals (and any modification) of such ROPS item(s), the Successor Agency shall transfer or caused to be transferred to the City the Additional Costs as soon as practicable upon the commencement of the applicable ROPS Period. Section 5. Before each transfer of moneys by the Successor Agency pursuant to this Agreement, the City may, but is not obligated to, advance funds from sources available to City to make payments required by the Consultant Contracts (each such advance being a "City Advance"); provided that no City Advance shall cause the aggregate dollar amount transferred to the City under this Agreement to exceed $310,000 without prior Oversight Board approval. Any such City Advance made pursuant to this Agreement shall constitute a loan under HSC Section 34173(h) and the repayment of the City Advance pursuant to this Agreement shall constitute an enforceable obligation of the Successor Agency. Any amount transferred by the Successor -3- 128 12.000 I \ 1800420.1 RESOLUTION NO. OB-119 CONTRACT NO. C34120A Agency pursuant to this Agreement shall first be used to reimburse the City for outstanding City Advances, and then to pay for other expenditures of the Consultant Work. Section 6. The Parties agree that the City's obligation with respect to the engagement of the Consultants for the performance of the Consultant Work under this Agreement shall be limited to the extent that funding therefor is available from the Successor Agency pursuant to this Agreement. Section 7. To the extent the City still holds moneys (the "Excess") transferred by the Successor Agency pursuant to this Agreement after the payment in full of the amounts due to the Consultants under the respective Consultant Contracts (including the reimbursement to City Advances therefor), the City shall return such Excess to the Successor Agency within a reasonable time. Section 8. The City shall maintain records of the use of moneys transferred hereunder for the payments under the Consultant Contracts, the advances made by the City for payments under the Consultant Contracts and all of the receipts of repayments made by the Successor Agency pursuant to this Agreement. Such records shall be available for inspection by the Successor Agency at all reasonable times. Section 9. As between the Successor Agency and the City, the Successor Agency's obligation to pay for the costs to complete the Consultant Work incurred under the respective Consultant Contracts (including the reimbursement to the City for all City Advances) under this Agreement shall survive the Successor Agency's disposition of the Property and shall terminate only when the payment of such costs (including the reimbursement to the City for all City Advances) has been made in full by the Successor Agency. Section 10. 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 11. This Agreement may be amended at any time, and from time to time. by an agreement executed by both parties to this Agreement in writing. Section 12. If any provision of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable. Section 13. 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 Parties, or for any amount which may otherwise become due under the terms of this Agreement. Section 14. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. -4- 12812.0001 \1800420.1 RESOLUTION NO. OB-119 CONTRACT NO. C34120A IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. Attest: Secretary Attest: City Clerk APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By Chair SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By Executive Director CITY OF PALM DESERT By Mayor Date: 12812.0001 \ 1800420.1 -5- Staff Report Agreement Regarding 170-Acre Site Consultant Work and Costs Page 2 of 3 February 23, 2015 The zoning change process requires the engagement of consultants to, among other things, prepare proposed specific plan, environmental review documents and related reports (collectively, the "Consultant Work"). As between the City and the Successor Agency, the City has the resources (with respect to the staffing and established procedures) to manage contracts and otherwise coordinate with the Consultants and other third parties in connection with the Consultant Work. The Successor Agency and the City are proposing to enter into an agreement regarding 170-Acre Site Consultant Work and Costs (the "Agreement"), substantially in of Exhibit A to Resolution No. OB-119, for the City to engage the Consultants, with payment therefor to be made from the funds available to the Successor Agency. While the Agreement will provide the City with the flexibility to retain multiple consultants, the City currently expects to engage only one -- Sargent Town Planning ("STP"). A team from STP is already working on the City's General Plan update. The same team will do the Consultant Work relating to the zoning change for the Property. This will ensure that the zoning change documents for the Property and the City's General Plan update will be C:\Users\rmccormick\Desktop\Palm Desert - OB staff report re agrmt re 170-acre site consultant work .docx