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HomeMy WebLinkAboutSA-RDA 037RESOLUTION NO. 2014- SA -RDA 037 A RESOLUTION OF THE BOARD OF DIRECTORS TO THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF AN AGREEMENT FOR UNIVERSITY SITE WORK AND COSTS BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), as modified by 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 an 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 (the "Property"), sometimes referred to as the University Site — consisting of undeveloped land in the City bounded by Frank Sinatra Drive on the south, Cook Street on the west, and Gerald Ford 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. 10(a) and 10(b) on the Successor Agency's Long Range Property Management Plan (the "LRPMP"). The LRPMP has been previously 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. The Successor Agency is charged with maintaining the Property before the disposition of the Property in a manner consistent with the LRPMP and the Dissolution Act. F. Pursuant to the LRPMP, most of the Property will be transferred to California State University, San Bernardino ("the University") for use for education facilities. The Successor Agency is engaged with the University regarding details that must be finalized before the transfer can occur. Until such details are finalized, the Successor Agency's disposition of the Property is pending and the Successor Agency must continue to maintain the Property. G. The Property has been the subject of complaints from nearby residents and Notices to Comply from the South Coast Air Quality Management District regarding 12812-0001\1760872.1 1 RESOLUTION NO. 2014- SA -RDA 037 high particulate matters (PM-10) from the Property that become airborne from blowing winds, causing nuisance and potential health hazards. H. While prior efforts — including the installation of wind fences at strategic locations and the sealing of certain portions of the Property — had mild successes against light winds, these measures have been insufficient to overcome the effects of even moderate wind storms. I. Additional work (the "Work") is required to address the on -going nuisance and potential health hazard. Such Work is currently expected to include the sealing of the entire surface of the Property. J. Pursuant to HSC Sections 34171(b) and 34171(d)(1)(F), the costs of maintaining the Property before its disposition constitute enforceable obligations of the Successor Agency, separate and apart from the Successor Agency's administrative cost allowance (as defined under HSC Section 34171(b)). K. 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 such ROPS to the Oversight Board and the DOF for approval. L. The Successor Agency previously prepared a ROPS ("ROPS 14-15A") for anticipated payments covering the period from July 1, 2014 through December 31, 2014 (the "ROPS 14-15A Period"). M. Listed as Item No. 43 on ROPS 14-15A is $120,000 for the utilities, services and other costs expected to be incurred for the maintenance of Successor Agency -owned properties. Item No. 43 is intended to include the cost of the Work ("Work Costs") relating to the Property to be incurred during the ROPS 14-15A Period. As indicated on ROPS 14-15A, Item No. 43 is to be paid from moneys disbursed by the County Auditor -Controller from the Redevelopment Property Tax Trust for ROPS 14- 15A Period payments (the "ROPS 14-15A RPTTF Disbursement"). N. The Oversight Board adopted Resolution No. OB-064, on February 24, 2014, approving ROPS 14-15A. O. The Successor Agency received the DOF's letter dated May 16, 2014, indicating the DOF's approval of ROPS 14-15A with certain modifications, which modifications did not affect Item No. 43. P. Based on current estimates, the total Work Costs to be incurred during the ROPS 14-15A Period will be $86,000. WO trial ... UM MO Q. As between the City of Palm Desert (the "City") and the Successor Agency, the City has the resources (with respect to the staffing and established .. 12812-0001\1760872.I RESOLUTION NO. 2014- SA -RDA 037 procedures) to manage contracts and otherwise coordinate with third parties in connection with the Work. R. The Successor Agency and the City desire to enter into an Agreement for University Site Work and Costs (the "Agreement"), substantially in the form attached hereto as Exhibit A, for the City to perform or cause to be performed all Work required, with payment therefor to be made from the funds available to the Successor Agency. S. 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 BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Agreement for University Site Work and Costs. The Agreement, in the form attached hereto as Exhibit A, is hereby approved. Upon the DOF's approval (or deemed approval) of the Oversight Board's resolution approving the Successor Agency's execution and delivery of the Agreement, 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 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. 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 Agreement. APPROVED and ADOPTED this 13th day of November , 2014. AYES: NOES: ABSENT: ABSTAIN: BENSON, HARNIK, SPIEGEL, WEBER, and TANNER NONE NONE NONE VAN G. TANNER, CHAIR ATTEST: RA' HELLE D. KLASSENTSECRETAR SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 12812-0001\1760872.1 RESOLUTION NO. SA -RDA 037 [This page has intentionally been left blank.] Resolution No. SA -RDA 037 EXHIBIT A Agreement for University Site Work and Costs (in substantial final form) (see attached) 12812-0001\1760872.1 RESOLUTION NO. SA -RDA 037 [This page has intentionally been left blank.] RESOLUTION NO. SA -RDA 037 CONTRACT NO. C338901) AGREEMENT FOR UNIVERSITY SITE WORK AND COSTS This AGREEMENT FOR UNIVERSITY SITE WORK AND COSTS (this "Agreement"), dated as of , 2014, 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 A13 XI 26 (enacted in June 2011), as modified by the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 CaI. 4th 231(2011), the Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012, the Successor Agency was established and an 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 X 1 26. Together, AB X 1 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 (the "Property"), sometimes referred to as the University Site — consisting of undeveloped land in the City bounded by Frank Sinatra Drive on the south, Cook Street on the west, and Gerald Ford 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. 10(a) and 10(b) on the Successor Agency's Long Range Property Management Plan (the "LRPMP"). The LRPMP has been previously 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. The Successor Agency is charged with maintaining the Property before the disposition of the Property in a manner consistent with the LRPMP and the Dissolution Act. F. Pursuant to the LRPMP, most of the Property will be transferred to California State University, San Bernardino ("the University") for use for education facilities. The Successor Agency is engaged with the University regarding details that must be finalized before the transfer can occur. Until such details are finalized, the Successor Agency's disposition of the Property is pending and the Successor Agency must continue to maintain the Property. G. The Property has been the subject of complaints from nearby residents and Notices to Comply from the South Coast Air Quality Management District regarding high particulate matters (PM-10) from the Property that become airborne from blowing winds, causing nuisance and potential health hazards. H. While prior efforts — including the installation of wind fences at strategic locations and the sealing of certain portions of the Property — had mild successes against Tight winds, these measures have been insufficient to overcome the effects of even moderate wind storms. -1- 12812.0001 \176411.2 RESOLUTION NO. SA -RDA 037 CONTRACT NO, C33890D I. Additional work (the "Work") is required to address the on -going nuisance and potential health hazard. Such Work is currently expected to include the sealing of the entire surface of the Property. J. Pursuant to I ISC Sections 34171(h) and 34171(d)(1)(F), the costs of maintaining the Property before its disposition constitute enforceable obligations of the Successor Agency, separate and apart from the Successor Agency's administrative cost allowance (as defined under HSC Section 34171(b)). K. 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 I and July 1, respectively) (each, a "ROPS Period"), and submit such ROPS to the Oversight Board and the DOF for approval. L. The Successor Agency previously prepared a ROPS ("ROPS 14-15A") for anticipated payments covering the period from July 1, 2014 through December 31, 2014 (the "ROPS 14-15A Period"). M. Listed as Item No. 43 on ROPS 14-15A is $120,000 for the utilities, services and other costs expected to be incurred for the maintenance of Successor Agency -owned properties. Item No. 43 is intended to include the cost of the Work ("Work Costs") relating to the Property to be incurred during the ROPS 14-15A Period. As indicated on ROPS 14-15A, Item No. 43 is to be paid from moneys disbursed by the County Auditor -Controller from the Redevelopment Property Tax Trust for ROPS 14-15A Period payments (the "ROPS 14-15A RPTTF Disbursement"). N. The Oversight Board adopted Resolution No. OB-064, on February 24, 2014, approving ROPS 14-15A. O. The Successor Agency received the DOF's letter dated May 16, 2014, indicating the DOF's approval of ROPS 14-15A with certain modifications, which modifications did not affect Item No. 43. P. Based on current estimates, the total Work Costs to be incurred during the ROPS 14-15A Period will be $86,000. Q. 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 third parties in connection with the Work. R. 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, with payment therefor to be made from the funds available to the Successor Agency. S. 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 \ 176411.2 RESOLUTION NO. SA -RDA 037 CONTRACT NO. C338901) "I'. The Oversight Board adopted its Resolution No.013-101 onNovember 3 , 2014 (the "Oversight 13oard Resolution"), approving the Successor Agency's execution and delivery of this Agreement. lJ. The Oversight Board Resolution was (approved] (deemed approved] by the DOI pursuant to I ISC Section 34179(11) 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 he performed all Work required to mitigate the on -going nuisance and potential health hazard, including but not limited to the plans and specifications thereof and all actual work related thereto. The City shall perform the Work (or cause the performance thereof) in accordance with all applicable federal, state and local laws, and rules and regulations. Subject to the provisions set forth herein, the City shall have the sole discretion with respect to the planning, specification and the timing with respect to all components of the Work. Section 2. As soon as practical upon the execution of this Agreement by the Parties (and in any case before the end of ROPS 14- 15A Period), the Successor Agency shall transfer an amount equal to $86,000 from the portion of the ROPS 14-15A RPTTF Disbursement allocable to Item 43. Section 3. 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 Work, the City's Finance Director shall notify the Successor Agency, specifying the estimated dollar amount necessary for the completion of the Work (the "Additional Costs"). The Successor Agency shall list the Additional Costs on the ROPS for the next available ROPS Period. Subject to the Oversight Board's and the DOF's approval (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 4. 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 for the work necessary for the Work (each such advance being a "City Advance"). 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 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 Work. Section 5. The Parties agree that the City's obligation with respect to the work for the Work under this Agreement shall be limited to the extent that funding therefor is available from the Successor Agency pursuant to this Agreement. Section 6. To the extent the City still holds moneys (the "Excess") transferred by the Successor Agency pursuant to this Agreement after the payment of all of the Work Costs -3- 128t2.0001,1764tt 2 RESOLUTION NO. SA -RDA 037 CONTRACT NO. C33890D incurred (including the reimbursement to City Advances therefor), the City shall return such Excess to the Successor Agency within a reasonable time. Section 7. The City shall maintain records of all of the advances made by the City for the Work Costs 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 8. The Successor Agency's obligation to pay for all Work Costs incurred (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 all Work Costs incurred (including the reimbursement to the City for all City Advances) has been made in full by the Successor Agency. Section 9. 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 10. 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 11. 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 12. 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 13. 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. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES TO FOLLOW] -4- 12812.0001 \ 176411.2 RESOLUTION NO. SA -RDA 037 CONTRACT NO. C33890D IN WITNESS WHEREOF, the Parties have caused this Agreement to he executed by their duly authorized officers. Attest: Secretary Attest: City Clerk APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By Executive Director CITY OF PALM DESERT By Mayor By Date: Chair -5- 128I 2.0001 \ 176411.2 RESOLUTION NO. SA -RDA 037 CJ 0 oU 0 0 Off% On University Site n�0 FRANK SINATRA DR N