HomeMy WebLinkAboutSA-RDA 046RESOLUTION NO. SA -RDA 046
A RESOLUTION OF THE BOARD OF DIRECTORS OF 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 Califomia 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.
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RESOLUTION NO. SA -RDA 046
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 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 RegardinQ 170-Acre Site Consultant 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).
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RESOLUTION NO. SA -RDA 046
Section 3. Request for Oversight Board Approval. The Oversight Board is
hereby requested to approve the Successor Agency's execution and delivery of the
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
Agreement.
PASSED, APPROVED AND ADOPTED this26thday of February 2015.
AYES:
HARNIE, JONATHAN, SPIEGEL, TANNER, and WEBER
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Susan Marie Weber, Chair
ATTEST:
D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
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RESOLUTION NO. SA -RDA 046
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RESOLUTION NO. SA -RDA 046
EXHIBIT A
Agreement Regarding 170-Acre Site Consultant Work and Costs
(in substantial final form)
(see attached)
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RESOLUTION NO. SA -RDA 046
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 X 1 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
X 126. 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.
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.
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RESOLUTION NO. SA -RDA 046 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 $100,000 for costs
associated with the disposition of assets. Item No. 190 is intended to include the costs such as
those for the Consultant Work. As indicated on ROPS 14-15A, Item No. 190 is to be paid from
moneys disbursed by the County Auditor -Controller from the Redevelopment Property Tax Trust
Fund (the "RPTTF") on January 2, 2015 for ROPS 14-15B Period (the "ROPS 14-15B RPTTF
Disbursement").
Q. Item No. on ROPS 15-16A, as approved by the DOF, is [$ 1 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.
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RESOLUTION NO. SA -RDA 046
Contract No. C34120A
S. The Oversight Board adopted its Resolution NoOB-119 on bruary 23 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 IISC 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
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RESOLUTION NO. SA -RDA 046
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.
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RESOLUTION NO. SA -RDA 046
Contract No. C34120A
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized officers.
Attest:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT rrunvr.LOPMENT AGENCY
Attest:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
APPROVED:
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM
DESERT REDEVELOPMENT AGENCY
By
ROBERT A. SPIEGEL, CHAIR
SUCCESSOR AGENCY TO THE PALM
DESERT REDEVELOPMENT AGENCY
By
JOHN M. WOHLMUTH, EXECUTIVE DIRECTOR
CITY OF PALM DESERT
By
Susan Marie Weber, Mayor
Date:
February 23, 2015
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