HomeMy WebLinkAboutTitle Fees as Part of EIP Phase I & IICITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE PAYMENT OF TITLE FEES TO FIRST AMERICAN
TITLE COMPANY AND LAWYERS TITLE COMPANY AS PART OF
THE ENERGY INDEPENDENCE PROGRAM (EIP)
SUBMITTED BY: Martin Alvarez, Redevelopment Manager
DATE: April 22, 2010
Recommendation
By Minute Motion that the City Council and Agency Board:
1. Authorize payment to First American Title Company in an amount not -
to -exceed $30,240 for title fees incurred as part of Phase I and
II(a)&(b), of the EIP. A portion of these costs will be reimbursed
by EIP participants; and
2. Authorize payment to First American Title Company and Lawyers Title
Company in an amount not -to -exceed $108,000 for title fees incurred
as part of Phase III as services are rendered. All Phase Ill costs will
be reimbursed by EIP participants; and
3. Authorize the Director of Finance to transfer funds deposited into the
Energy Independence Program Loan proceeds in Account No. 237-
0000-349-9400 to Energy Management to offset said costs.
Funds for these costs have been budgeted in the Energy Management
Professional Services Account No. 850-4511-442-3090.
Backaround
The City's Energy Independence Program (EIP) was launched in July 2008. Since its
inception the City has issued approximately 200 loans totaling $5.5M. Phase III of the
Energy Independence Program (EIP) has $6 million available for property owners to invest
in energy efficiency upgrades.
Staff Report
EIP Reimbursement of Title Fees
April 22, 2010
Page 2 of 3
As a condition of approval, each participant is required to have a clean title on the property
in which the reimbursement for improvements are being requested. In order to determine
the status of the property, staff has engaged the services of First American Title Company
and Lawyers Title Company. The services provided include a preliminary title report, title
insurance policy and recording fees at a cost of $360 per participant. These services are
more commonly known as "title fees".
As part of the Phases I and II(a), the property owners were responsible for $200 of the $360
title fee cost. In Phases II(b) and Phase III, EIP participants are responsible for the full $360
title fee cost. As part of the EIP loan disbursement process, the City collects the title fees
from each property owner that participates in the program. These funds are intended to
cover the cost of the title fees.
Staff seeks authorization to pay to First American Title Company and Lawyers Title
Company for title fees incurred as part of the EIP Program. Additionally, staff requests
authorization to transfer EIP loan proceeds to Energy Management as they are intended to
cover these costs. Below please find a breakdown of title fees per phase:
Staff recommends approval for the following items:
1. Authorize payment to First American Title Company in an amount not -to -
exceed $30,240 for title fees incurred as part of Phase I, II(a) and (b) of the
EIP. A portion of these costs will be reimbursed by EIP participants;
and
GArda\Martin A1varez\2010\SR\4-22-10b Falc&awyTitleFees.doc
Staff Report
EIP Reimbursement of Title Fees
April 22, 2010
Page 3 of 3
2. Authorize payment to First American Title Company and Lawyers Title
Company in an amount not -to -exceed $108,000 for title fees incurred as part
of Phase III. All Phase III costs will be reimbursed by EIP participants;
and
3. Authorize the Director of Finance to transfer funds deposited into the Energy
Independence Loan proceeds in Account No. 237-0000-349-9400 to Energy
Management to offset said costs.
Fiscal Analvsis
A portion of the title report fees incurred by the Agency as part of EIP Phase I and II(a) are
covered by participant reimbursements and the remaining costs totaling $22,240 will be
covered by EIP program reserves. All Phase II(b) and Phase III EIP title fees will be
reimbursed by participating property owners and therefore there is no impact to the General
Fund.
......................................................................................................................................................................................................................... _............................................................................................................................................................................................................................... I .................
COST BREAKDOWN AMOUNT
Phase I & II 66,240
................................................................................................................... ............................. .
Less: Corres ondin Ph. l & 11 Reimbursement 44, 000
.................... ...............................................................................................................................................................................P.............................9................................................................................................................................................._.....................................................i.............................
.....)......
Phase III (Anticipated)_ , 108,000
Less: Corresponding...Ph....._/// Reimbursement (108, 000).....
Potential Costs to be Covered by Program Reserves $ 22,240.
---- ....-------------- ....._.........._..... - -... -....
Submitted By:
Whin Alvarez, Redevelopment Manager
Department Head:
io�z? �w
us'in McCarthy, ACM fo Redevelopment
A prov
l
PaPuG i , Finance Director
JoWohlmuth, City Manager
CITY C0111VCILACT "
APPROVED ✓✓ 1,1r�i.u+
RECEIVED OTHER
MEETING DATE'/ ` � - LI b
AYES: (. ti7 �i c � r! i a-r Fa_
NOES:
ABSENT:r�CS'1
ABSTAIN:
VERIFIEDBY- lc-)LAJ/))0d 1 )
Original on File with City L"4rk's Office
BY RDA
ON yL, aOr U
VERIFIED BY lP 0t(-111 tj0-)
Original on file with City Clerk's Office
GArda\Martin Alvarez\2010\SR\4-22-10b FatcoLawyTitleFees.doc