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HomeMy WebLinkAboutR24250 - RSG, Inc. - Housing Report (Excess Tax Increment)CONTRAt U. R;50 PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE THE AGENCY BOARD TO RETAIN THE FIRM OF ROSENOW SPEVACEK GROUP, INC., FOR $15,550 TO ACCOMPLISH THE HOUSING REPORT REGARDING EXCESS TAX INCREMENT REVENUES SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING CONTRACTOR: ROSENOW SPAVACEK GROUP, INC. 309 WEST eH STREET SANTA ANA, CA 92701-4502 DATE: AUGUST 25, 2005 CONTENTS: PROPOSAL FROM ROSENOW SPEVACEK GROUP INC., DATED AUGUST 15, 2005, FOR CONSULTANT SERVICES FOR A REDEVELOPMENT AGENCY HOUSING REPORT REGARDING EXCESS TAX INCREMENT REVENUES Recommendation: By Minute Motion, that the Agency Rosenow Spevacek Group, Inc., to Excess Tax Increment Revenues account number 850-4195-466-3092. Executive Summary: Board authorize staff to retain the firm of accomplish the Housing Report Regarding appropriating $15,550 from the Agency Authorization of staff's recommendation will provide for the report needed by the Agency to issue tax increment bonds pursuant to the stipulation. Backqround: In May of 1991, the judgment incorporating the terms of a Stipulation for Entry of Judgment in an action between The Western Center on Law and Poverty and the Palm Desert Redevelopment Agency was finalized. That stipulation, among other items, provided that the Agency must develop a report regarding excess tax increment funds prior to the issuance of tax increment bonds. The intention is to demonstrate to The Western Center, and other housing groups, that the Agency has sufficient funds to meet its current and future housing obligations with its current 20 percent set aside funds and, therefore, can encumber its 80 percent portion to the issuance of tax increment bonds. CONTRACT NO. R24250 Staff Report Authorize retaining the firm of Rosenow Spevacek Group, Inc., to accomplish the Housing Report Regarding Excess Tax Increment Revenues Page 2 of 2 August 25, 2005 As simple as that may sound, the process does require a detailed analysis of the City's and Agency's Equalized Assessment Rolls together with the development of the Agency's tax increment projections in conjunction with an analysis of the Agency's current and future housing needs projection. Staff is proposing to use the services of Rosenow Spevacek Group, Inc., because they have a historical perspective of the Agency's revenues and housing projections, especially their knowledge of the Agency's limits and pass through requirements. Rosenow Spevacek also understands the requirements and obligations imposed by the Stipulation. Submitted by: '15a-ve Yrigo� Director,efBIOR R Approval: ent/Housing G deist n McCarthy, ACM velopment Carlos L. Orte , Executive Director Paul S. Gibson, Director of Finance GARMEWh Longman\,Statf ReportstYngoyen\RSG Hsg Rpt-082505.doc CONTRACT NO. R24250 INTELLIGENT COMMUNITY DEVELOPMENT August 15, 2005 Ms. Janet M. Moore, Senior Management Analyst PALM DESERT REDEVELOPMENT AGENCY PALM DESERT HOUSING AUTHORITY Palm Desert City Hall 73-510 Fred Waring Drive Palm Desert, Callomia 92260 ROSENOW SPEVACEK GROUP INC. T 714 541 4585 309 VIES' 4TH STRc;T F 714 541 117S SANTA ANA, CAI.'FOP,NIA E INFO ci VIEBRSG COM 92701-4507 `NFRRSG.00M Via Email and Regular Mail PROPOSAL FOR CONSULTANT SERVICES -REDEVELOPMENT AGENCY HOUSING REPORT REGARDING EXCESS TAX INCREMENT REVENUES Dear Ms. Moore: Rosenow Spevacek Group, Inc. (RSG) is pleased to present this proposal for preparation of the Agency's Housing Report Regarding Excess Tax Increment Revenues ("Housing Report"). The Housing Report is an obligation imposed on the Agency by the Stipulation for Entry of Judgment in Case No. Indio 51143, entitled City of Palm Springs v. All Persons Interested, as amended in 1997 and as amended again in September of 2002 (the "Stipulation"). RSG is uniquely qualified to prepare the required Housing Report. RSG has worked with the Palm Desert Redevelopment Agency on various redevelopment -related projects since 1989. RSG has previously prepared two prior Housing Reports for the Agency. Additionally, over the last 16 years, RSG has provided the Agency with plan adoption, implementation and housing plan preparation, real estate economic analysis, tax increment pass -through calculations and fiscal consultant services. RSG CONSULTANT TEAM For this assignment, Felise Acosta would serve as Principal -in -Charge of the assignment. Ms. Acosta has over 30 years of experience in redevelopment planning and implementation, real estate financial analysis, housing and fiscal consulting Other members of the project team would include Jose Ometeotl, Associate; Jessica Franklin, Senior Analyst; and Lynn Kelly, Analyst. �LC.E: [LC CNEN— PLANNING c'hAI HIV'-, CONTRACT NO. R24250 Ms. Janet Moore, Senior Management Analyst PALM DESERT REDEVELOPMENT AGENCY August 15, 2005 Page 2 SCOPE OF SERVICES On May 15, 1991, the Superior Court of the State of California for Riverside County entered a Final Judgment in certain legal actions between the Western Center on Law and Poverty, Inc, the California Rural Legal Assistance, Jonathan Lehrer-Craiwer and the City and Redevelopment Agency of Palm Desert (the "Parties"). The Judgment incorporated terms of a Stipulation for Entry of Judgment in the Case. The Stipulation and subsequent amendments impose certain ongoing obligations on the Agency with respect to affordable housing within the City. It also provides that the Court continue to have jurisdiction over the matters covered in the Stipulation for the purposes of enforcement of the Stipulation. The Stipulation requires that the Agency develop, rehabilitate or acquire or cause to be developed, rehabilitated, or acquired, within the City, affordable housing units in specific amounts during specified periods. Further, the Stipulation requires that prior to the issuance of tax allocation bonds, the Agency determine that excess tax increment revenues (as detailed in the proposed Housing Report) are not and will not be necessary to meet the housing requirements set forth in the Stipulation and that those tax increment revenues may be pledged on an annual basis to pay annual debt service required for bonds, notes or other obligations or indebtedness of the Agency to finance its redevelopment activities other than housing. The following details the proposed scope of services for the preparation of the required Housing Report. Based upon prior and the most recent Housing Report (October of 2002), RSG will, with the assistance of Agency/City staff and special counsel, compile and analyze the required data and information necessary to draft the 2005 Housing Report. Speck tasks that will be conducted by RSG in drafting the Housing Report include: 1. Detail 2005-06 Equalized Assessment Roll Values: Based upon Riverside County Auditor Controller's reports, RSG will detail the 2005-06 equalize assessment roll values for the Palm Desert Redevelopment Agency's Project No. 1 (Original and Added Territory), Project Area No. 2, Project Area No. 3 and Project Area No. 4 (the "Project Areas"). 2. Update Historical Values: Based upon the Riverside County Auditor Controller's reports, RSG will update information that identifies historical assessed values and growth of assessed values for each Project Area. G.1R SGtM ark ettHous i nglPalmDe sertH ousi n g R eport05.tloc CONTRACT NO. R24250 Ms. Janet Moore, Senior Management Analyst PALM DESERT REDEVELOPMENT AGENCY August 15, 2005 Page 3 3. Identify Expected New Construction and Development Activity: Working with the City of Palm Desert's (the "City") Planning and Building Departments, RSG will identify potential new construction and development activity expected to occur within the Project Areas over the foreseeable future. Once the new construction and development has been identified, RSG will estimate the new assessed values that are likely to be added to the Project Areas' assessment rolls from the new construction and development. 4. Tax Increment Revenue Projections: RSG will prepare projections of future tax increment revenue for each Project Area that details estimated assumed annual growth rate(s) and new values from development. Projections will identify gross tax increment revenue, housing set -aside amounts and net tax increment revenue available for debt service. 5. Summary of Citv/Agency's Proqress in Meeting Housing Requirements: With assistance from City/Agency staff and special counsel, RSG will provide a detailed summary of the City/Agency's progress in meeting the Stipulation's Housing unit production requirements. 6. Identify Excess Net Tax Increment Revenue: Based upon the 2005-06 equalized assessment roll values, RSG will detail amounts of projected net tax increment revenues available to pay annual debt services as well as identify surplus (if any) amounts of tax increment revenues that after payment of debt obligations would be designated as "Excess Tax Increment Revenue". 7. Provide or Develop Required Attachments to Housing Report: RSG will develop or secure such information required to be included in the Housing Report. Such information includes a review of the anticipated costs of the City/Agency's housing activities and projected revenues over the life the Agency's redevelopment project areas. 8. Draft and Finalize Housinq Report: Once all data, table and information have been collected analyzed and prepared, RSG will draft the Housing Report for staff and special counsel review. Based upon comments received, the Housing Report will be revised and finalized for presentation to the Agency. RSG's Principal will be present at the Agency's meeting to consider the Housing Report to make the necessary presentation or answer any questions from Agency members or public. G%RSGXMarkettHousrngtPalmpesertHousingReport05 clot CONTRACT NO. R24250 Ms. Janet Moore, Senior Management Analyst PALM DESERT REDEVELOPMENT AGENCY August 15, 2005 Page 4 FEES RSG will undertake the activities presented in the Scope of Services for a fee not to exceed $15,550. This includes attendance at two (2) project Agency staff meetings or telephone conferences and attendance at the Agency Board meeting to consider the Housing Plan. RSG staff will provide five (5) copies of the draft Plan and five (5) copies of the final Plan. Principal/Director $175 Senior Associate $145 Associate/Acquisition Agent $125 Senior Analyst $100 Analyst $ 90 Research Assistant/Real Estate Technician $ 80 Word Processor $ 60 Clerical $ 50 Reimbursables Cost Plus 10% It is RSG's policy to not charge clients for mileage, parking, telephone/fax expense, postage and incidental copies. We do, however, charge for additional insured certificates, messenger services, overnight mail costs, and copies of reports, documents, notices, and support material in excess of five (5) copies. These costs are charged at actual expense plus a 10% surcharge. TIMING We understand that the Agency requires preparation of the Housing Report as quickly as possible. Based on our understanding that both staff and special counsel will assist and provide materials and comments in a timely fashion, RSG believes that a final draft of the Housing Report can be delivered to staff by October 28, 2005, thereby allowing the Report to be considered at the Agency's meeting of November 10, 2005. G kRSGWanretlHousirg%PalmOeseAHousingRepodO5 doc CONTRACT NO. R24250 Ms. Janet Moore, Senior Management Analyst PALM DESERT REDEVELOPMENT AGENCY August 15, 2005 Page 5 Thank you for the opportunity to submit this proposal. We welcome an opportunity to continue to work with the Palm Desert Redevelopment Agency. Sincerely, ROSENOW SPEVACEK GROUP, INC. f Felise Acosta Principal cc: David L. Yrigoyen, Redevelopment Director G IRSG1MarketWousjng\PaimpesertHousingReporto5 ooc Contract No. R24250 AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is entered into this day of , 2005, by and between the Redevelopment Agency of the City of Palm Desert (hereinafter referred to as "AGENCY") and the Rosenow Spevacek Group, Inc. (hereinafter referred to as "CONSULTANT"). WITNESSETH The parties hereto do agree as follows: SECTION 1. RECITALS. This Agreement is made and entered into with respect to the following facts: (a) The AGENCY desires to undertake certain activities pursuant to Division 24 of the Health and Safety Code (the "Act") necessary for the planning, development and execution of projects thereunder; and (b) The AGENCY desires a highly qualified CONSULTANT to provide technical assistance in the area of tax increment revenue projection, fiscal analysis, housing obligations; and (c) The CONSULTANT represents that it is qualified to perform such services and has agreed to do so pursuant to this Agreement; and (d) The AGENCY desires to contract with the CONSULTANT on the basis of the following terms and conditions. SECTION 2. EMPLOYMENT. The AGENCY hereby employs the CONSULTANT and the CONSULTANT hereby accepts such employment, as CONSULTANT to the AGENCY, for purposes of providing technical assistance in the areas of tax increment revenue projection, fiscal analysis, housing obligation analysis and project coordination activities. SECTION 3. SCOPE OF SERVICES. The CONSULTANT will diligently perform the tasks and prepare the documents necessary to complete the Agency's Housing Report Regarding Excess Tax Increment Revenues (the "Housing Report"). The specific tasks are those outlined in the Scope of Services of the Proposal (Attachment A). SECTION 4. TERM. The term of this Agreement shall be the period from the date of this Agreement as first shown above until the adoption of the Housing Report, or until its abandonment by the Agency, whichever occurs first. The schedule of performance shall be as outlined in the preliminary schedule prepared by the CONSULTANT. If necessary, the schedule may be modified upon approval of the AGENCY staff. SECTION 5. CONSULTANT PROJECT TEAM. Felise Acosta, Managing Principal and Project Manager, will be designated as the responsible party for the CONSULTANT. Other project team members will include Jose Ometeotl, Associate; Jessica Franklin, Senior Analyst; and Lynn Kelly, Analyst. Contract No. R24250 If at any time during the term of this Agreement the principal consultant staff designated to work on the Project are no longer available to work on the Project, the AGENCY retains the right to renegotiate this Agreement. SECTION 6. COMPENSATION. The CONSULTANT will perform those tasks and deliver the products outlined in the Proposal for a fee not to exceed FIFTEEN THOUSAND FIVE HUNDRED FIFTY DOLLARS ($ 15,550). Not included in this fee are the costs incurred for those items identified as "Exclusions" in the Proposal. These items will be charged on a time and materials basis. Reimbursable expenses shall mean necessary out-of-pocket expenses incurred by the CONSULTANT in the performance of this Agreement for postage, printing and duplication costs, and messenger costs. Reimbursable expenses shall be billable at the actual costs reasonably incurred therefor plus a 10% surcharge. Within ten (10) days after the last day of any month, the CONSULTANT shall submit an invoice to the AGENCY itemizing tasks performed and related reimbursable expenses. The hourly rates for professional services rendered pursuant to this Agreement shall be those presented below. Principal/Director $175 Senior Associate $145 Associate/Acquisition Agent $125 Senior Analyst $100 Analyst $ 90 Research Assistant/Real Estate Technician $ 80 Word Processor/Graphic Artist $ 60 Clerical $ 50 SECTION 7. PAYMENT PERIOD. The AGENCY shall review the invoices submitted by CONSULTANT to determine whether the nature and extent of the services performed are consistent with this Agreement. Payment shall be made within thirty-five (35) days following receipt of the invoice by the AGENCY or AGENCY shall give to CONSULTANT a written notice objecting to charges, including a statement of reasons for such objections. SECTION 8. RIGHT OF TERMINATION. This Agreement may be terminated by the AGENCY, with or without cause, in its sole discretion, on ten (10) days written notice to the CONSULTANT. In such event, the CONSULTANT shall, on the AGENCY's request, promptly surrender to the AGENCY all completed work and work in progress, and all materials, records, and notes procured or produced pursuant to this Agreement. The CONSULTANT may retain copies of such work products as a part of its record of professional activity. The CONSULTANT is cognizant of the fact that all information and material obtained by the CONSULTANT from the AGENCY during the performance of this Agreement shall be treated as strictly confidential, and shall not be used by the CONSULTANT for any purpose other than the performance of this Agreement. The CONSULTANT shall be reimbursed for all expenses incurred to the date of termination. SECTION 9. REPORTS AND DOCUMENTS. All reports, agreements and other documents prepared by the CONSULTANT pursuant to this Agreement are the property of the AGENCY and shall be turned over to the AGENCY upon expiration or termination of this Agreement. G:kRSGWdm�ntslrat,on%Contracts\PaimDHousing Rep aoc 2 Contract No. R24250 The AGENCY may use, duplicate, disclose, and/or disseminate, in whole or in part, in any manner it deems appropriate, all papers, writings, documents, reports and other materials of whatever kind prepared, produced or procured in the performance of this Agreement, which are delivered to or acquired by AGENCY. SECTION 10. INDEPENDENT CONTRACTOR. The parties hereby acknowledge that the CONSULTANT is an independent contractor and shall not be considered to be an employee of the AGENCY. SECTION 11. INDEMNITY. CONSULTANT hereby agrees to and does indemnify, defend and hold harmless the AGENCY, and any and all of their respective officers, employees, and representatives from any and all claims, liabilities and expenses, including attorney fees and costs that arise out of CONSULTANT'S performance of this Agreement. However, if the CONSULTANT is joined in any legal action taken against the AGENCY except actions based on the negligent or wrongful acts of the CONSULTANT, the AGENCY will indemnify, defend and hold harmless the CONSULTANT. SECTION 12. NOTICES. Notices pursuant to this Agreement shall be given by personal service or by deposit of the same in the custody of the United States Postal Service, postage prepaid, addressed as follows: TO AGENCY: Executive Director Redevelopment Agency City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 TO CONSULTANT: Rosenow Spevacek Group, Inc. 309 West 4th Street Santa Ana, California 92701 Notices shall be deemed to be given as of the date of personal service, or two (2) days following the deposit of the same in the course of transmission of the United States Postal Service. SECTION 13. BINDING EFFECT. This Agreement shall be binding upon the parties hereto and their successors in interest. SECTION 14. ASSIGNMENT. CONSULTANT shall not be permitted to assign any of its rights or obligations hereunder, except to subconsultants as approved by the AGENCY and except for the payment of funds due from the AGENCY, without prior written consent of the AGENCY. The consent of the AGENCY to an assignment shall not be unreasonably withheld, but prior to approving any assignment involving the performance of any obligations pursuant to this Agreement, the AGENCY shall be satisfied by competent evidence that the assignee is financially able and technically qualified to perform those services proposed to be assigned. In the event of such assignment, the AGENCY may condition the same so as to ensure compliance with the provisions of this Agreement. SECTION 15. COMPLIANCE WITH LAWS. CONSULTANT shall comply with all applicable laws in performing its obligations under this Agreement. G:\RSGlAdministrationlContractstPalmDHousing Rep.doc 3 Contract No. R24250 SECTION 16. CONFIDENTIALITY. Information and materials obtained by the CONSULTANT from the AGENCY during the performances of this Agreement shall be treated as strictly confidential, and shall not be used by the CONSULTANT for any purpose other than the performance of this Agreement. SECTION 17. CONSULTANT'S LIABILITY AND INSURANCE, PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE. The CONSULTANT shall assume all responsibility for damages to property or injuries to persons, including accidental death, which may be caused by the CONSULTANT'S performance of a contract, whether such performance be by himself, his subcontractor, or anyone directly or indirectly employed by him and whether such damage shall accrue or be discovered before or after termination of contract. The Agency shall be provided a certificate of insurance verifying the CONSULTANT'S liability insurance coverage. SECTION 18. WORKERS' COMPENSATION INSURANCE. The CONSULTANT agrees to maintain at its expense, during the term of this Agreement, all necessary insurance for its employees engaged in the performance of this Agreement, including, but not limited to, workers' compensation insurance, and to provide the AGENCY with satisfactory evidence of such insurance coverage upon the AGENCY'S request. SECTION 19. DISCRIMINATION. The CONSULTANT agrees that no person shall be excluded from employment in the performance of this Agreement on grounds of race, creed, color, sex, age, marital status, or place of national origin. In this connection, the CONSULTANT agrees to comply with all County, State and Federal laws relating to equal employment opportunity rights. IN WITNESS WHEREOF, this Agreement has been duly authorized and executed by the parties hereto on the day and year first herein above written. ATTEST: REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT M ROSENOW SPEVACEK GROUP, INC. By: Felise Acosta Principal By: Principal G:RSG'AdministrationlGontracts\PalmOHousmg Rep.doc 4 Contract No. R24250 ATTACHMENT A SCOPE OF SERVICES On May 15, 1991, the Superior Court of the State of California for Riverside County entered a Final Judgment in certain legal actions between the Western Center on Law and Poverty, Inc, the California Rural Legal Assistance, Jonathan Lehrer-Craiwer and the City and Redevelopment Agency of Palm Desert (the 'Parties'). The Judgment incorporated terms of a Stipulation for Entry of Judgment in the Case. The Stipulation and subsequent amendments impose certain ongoing obligations on the Agency with respect to affordable housing within the City. It also provides that the Court continue to have jurisdiction over the matters covered in the Stipulation for the purposes of enforcement of the Stipulation. The Stipulation requires that the Agency develop, rehabilitate or acquire or cause to be developed, rehabilitated, or acquired, within the City, affordable housing units in specific amounts during specified periods. Further, the Stipulation requires that prior to the issuance of tax allocation bonds, the Agency determine that excess tax increment revenues (as detailed in the proposed Housing Report) are not and will not be necessary to meet the housing requirements set forth in the Stipulation and that those tax increment revenues may be pledged on an annual basis to pay annual debt service required for bonds, notes or other obligations or indebtedness of the Agency to finance its redevelopment activities other than housing. The following details the proposed scope of services for the preparation of the required Housing Report. Based upon prior and the most recent Housing Report (October of 2002), RSG will, with the assistance of Agency/City staff and special counsel, compile and analyze the required data and information necessary to draft the 2005 Housing Report. Specific tasks that will be conducted by RSG in drafting the Housing Report include: Detail 2005-06 Eaualized Assessment Roll Values: Based upon Riverside County Auditor Controller's reports, RSG will detail the 2005-06 equalize assessment roll values for the Palm Desert Redevelopment Agency's Project No. 1 (Original and Added Territory), Project Area No. 2, Project Area No. 3 and Project Area No. 4 (the 'Project Areas'). 2. Uadate Historical Values: Based upon the Riverside County Auditor Controller's reports, RSG will update information that identifies historical assessed values and growth of assessed values for each Project Area. G9RSGWtlmmistrahon\Contracts\PalmOHousing Rap.00c 5 Contract No. R24250 3. Identifv Expected New Construction and Development Activitv: Working with the City of Palm Desert's (the 'City') Planning and Building Departments, RSG will identify potential new construction and development activity expected to occur within the Project Areas over the foreseeable future. Once the new construction and development has been identified, RSG will estimate the new assessed values that are likely to be added to the Project Areas' assessment rolls from the new construction and development. 4. Tax Increment Revenue Proiections: RSG will prepare projections of future tax increment revenue for each Project Area that details estimated assumed annual growth rate(s) and new values from development. Projections will identify gross tax increment revenue, housing set -aside amounts and net tax increment revenue available for debt service. 5. Summary of Citv/AQencv's Proaress in Meetina Housina Requirements: With assistance from City/Agency staff and special counsel, RSG will provide a detailed summary of the City/Agency's progress in meeting the Stipulation's Housing unit production requirements. 6. Identifv Excess Net Tax Increment Revenue: Based upon the 2005-06 equalized assessment roll values, RSG will detail amounts of projected net tax increment revenues available to pay annual debt services as well as identify surplus (if any) amounts of tax increment revenues that after payment of debt obligations would be designated as 'Excess Tax Increment Revenue" 7. Provide or Develop Reauired Attachments to Housina Report: RSG will develop or secure such information required to be included in the Housing Report. Such information includes a review of the anticipated costs of the City/Agency's housing activities and projected revenues over the life the Agency's redevelopment project areas. 8. Draft and Finalize Housina Report: Once all data, table and information have been collected analyzed and prepared, RSG will draft the Housing Report for staff and special counsel review. Based upon comments received, the Housing Report will be revised and finalized for presentation to the Agency. RSG's Principal will be present at the Agency's meeting to consider the Housing Report to make the necessary presentation or answer any questions from Agency members or public. G:tRSGlAdministraton\ContractslPaIMOHoustng Rep.00c 6