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HomeMy WebLinkAbout1/18/2011 - STAFF REPORTS - 1 Ao�p p ALM S0 i� f. fa V N * f .r P City Council/ Redevelopment Agency Staff Re art DATE: January 18, 2011 SUBJECT: APPROVAL AND EXECUTION OF AGREEMENTS FOR AGENCY STAFF SERVICES AND REIMBURSEMENT FOR PREVIOUSLY INCURRED OBLIGATIONS FROM: David H. Ready, Esq., Ph.D., City Manager/Executive Director BY: Thomas Wilson, Assistant City Manager John Raymond, Director, Community&Economic Development Geoffrey Kiehl, Director of Finance&Treasury SUMMARY The Governor of the State released his Budget Proposal on Monday, .January 10, 2011. In this budget, the Governor proposes to eliminate redevelopment, and re- direct any tax increment not currently pledged to existing debt or contractual obligations to defray certain costs of the State. The California Redevelopment Association has recommended that agencies carefully document their existing obligations, so that the agencies' tax increment may be protected to provide for these items. Further, the Governor has urged the Legislature to adopt urgency legislation precluding agencies from incurring additional debt. The Legislature could take this action at any time. The Community Redevelopment Agency of the City of Palm Springs has incurred obligations to the City over a number of years and wishes to establish, document and record the repayment schedule for such obligations. Furthermore, the Agency currently contracts with the City to provide staff services to administer its programs and activities and wishes to provide for the reimbursement to the City for such services. If approved, the resolutions would authorize the execution of two agreements between the City and the Agency relating to these transactions. One agreement r will formalize certain existing obligations the Agency has to the City, which were approved in accordance with the California Redevelopment Law, such as the contribution to Convention Center debt and certain interfund loans. The other agreement would provide for long-term staffing costs relating to the administration of the Agency, in-lieu of the Agency's current year-to-year contract. Given the lack of credible information as to the Governor's timeline or the State Department of Finance's progress on drafting any such urgency legislation, it is prudent to take action at this time to formalize these existing obligations. RECOMMENDATION Acting as the City Council: 1. Approve Resolution No. "RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES" 2. Approve Resolution No. "RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS" Acting as the Agency Board: 3. Approve Resolution No. "RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR PROVIDING FOR REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES" 4. Approve Resolution No. "RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS" FISCAL IMPACT: The Agency is carrying out the redevelopment plans for each of the project areas, and, in that regard, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing. The Cooperative Agreement provides that the City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. Pursuant to the Agreement, the Agency shall have access to the services and facilities of the planning department, the planning commission, the city engineer and the other departments and offices of the City. Each year, these costs exceed $1,000,000, a portion of which is allocable to each project area. Pursuant to the Agreement, the Agency shall pay the City for such costs. In addition, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City for programs and activities associated with redevelopment of the Agency's project areas (e.g. Convention Center remodel, etc. — see exhibit 1). These annual expenditures total approximately $1.9 million annually. It is important to note, this does not represent additional debt. David H. Ready, Esq., Thomas Wilso City Manager/Executive Director Assistant City Manager John Ray o d, Director Geoffr y Kie I, Director Commupity & E nomic Development Finance &Treasury K---, Attachments: Resolutions and Agreements 3 . RESOLUTION NO. RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS WHEREAS, the Community Redevelopment Agency of the City of Palm Springs has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City of Palm Springs for programs and activities associated with the Project Areas; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such obligations by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City of Palm Springs, as follows: 1. The Mayor and City Clerk of the City are hereby authorized and directed to execute and attest to the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements for and in the name and on behalf of the City. The City hereby authorizes the delivery and performance of the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements pursuant to the terms thereof. ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: City Clerk Stephen P. Pougnet, Mayor City of Palm Springs Approved as to form: City Attorney RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS WHEREAS, the Community Redevelopment Agency of the City of Palm Springs has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City of Palm Springs for programs and activities associated with its redevelopment programs and activities; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such obligations by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: 1. The Chairman and the Assistant Secretary of the Agency are hereby authorized and directed to execute, and attest to the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements pursuant to the terms thereof. ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Assistant Secretary STEPHEN P. POUGNET, CHAIRMAN Community Redevelopment Agency of the City of Palm Springs REIMBURSEMENT AGREEMENT FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN COMMUNITY REDEVELOPMENT AGENCY FUNDED CAPITAL IMPROVEMENTS THIS REIMBURSEMENT AGREEMENT (the "Agreement") is entered into this 18th day of January, 2011, by and between the CITY OF PALM SPRINGS (the "City") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS (the "Agency"), with reference to the following facts: A. The Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which results in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment. B. The intent of the Redevelopment Plans is, in part, to provide for the construction and installation of necessary public infrastructure and facilities and to facilitate the repair, restoration and/or replacement of existing public facilities and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Areas; and to increase, improve and preserve the community's supply of low and moderate income housing, some of which may be located or implemented outside the Redevelopment Project Areas; and to take all other necessary actions to implement the redevelopment plans for the respective redevelopment projects and to expend tax increment to accomplish the goals and objectives of the respective redevelopment projects. C. Pursuant to California Redevelopment law, section 33220, certain public bodies, including the City may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment projects. The Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City for programs and activities associated with the Project Areas listed in the attached Exhibit 1, which are incorporated herein by this reference (the "Projects"). D. The Agency wishes to enter into this Agreement with the City for the pledge of net available tax increment to repay amounts borrowed or otherwise to be reimbursed for the Projects. The purpose of this Agreement is to record the Projects to be funded with net available tax increment in this current fiscal year and forthcoming fiscal years. E. Net available tax increment is defined as any tax increment, net of existing debt service payments, and existing contractual obligations received by the Agency or any lawful successor of the Agency and/or to any of the powers and rights of the Agency pursuant to any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. The pledge of net available tax increment will constitute obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations set forth in this Agreement will be contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. Page 1 10. F. The City Council (the "Council") and the Agency by resolution have each found that the use of Agency redevelopment funding for the Projects was, if applicable, in accordance with Section 33445 of the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL") and Section 33445(a) of the CRL and other applicable law at time the financial obligation for Projects was originally incurred. The said Council and Agency resolutions are each based on the authority of the Agency, with the consent of the Council, to pay all or part of the cost of the installation and construction of any building, facility, structure, or other improvements which is publicly owned either within or outside a project area, if the Council made certain determinations. G. By approving and entering into this Agreement, the Agency has approved the pledge of net available tax increment from the Project Areas to pay for the Projects. H. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the Redevelopment Plans for the Project Areas. NOW, THEREFORE, the parties hereto do mutually agree as follows, 1. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. AGENCY'S OBLIGATIONS 1. The Projects are those projects which are listed on the attached Exhibit 1, which is incorporated herein by this reference. The Agency's obligations under this Agreement, including without limitation the Agency's obligation to make the payments to the City required by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of the Project Areas and are obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations of the Agency set forth in this Agreement are contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. 2. The obligations of Agency under this Agreement shall be payable out of net available tax increments, as defined in the above recitals and/or as defined or provided for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the Redevelopment Project Areas, and allocated to the Agency and/or any lawful successor entity of the Agency and/or any entity established by law to carry out any of the redevelopment plans for the Project Areas and/or expend tax increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670, et seq., of the California Community Redevelopment Law or any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, in the minimum amounts set forth in the Payment Schedule attached hereto as Exhibit 2 and incorporated herein by this reference. 3. The indebtedness of Agency under this Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes or other instruments of indebtedness (all referred to herein as "indebtedness") of the Agency incurred or issued to finance the Project Areas, including without limitation any pledge of tax increment revenues from the Project Areas Page 2 1 . to pay any portion of the principal (and otherwise comply with the obligations and covenants) of any bond or bonds issued or sold by Agency with respect to the Redevelopment Project Areas. 4. All payments due to be made by the Agency to the City under this Agreement shall be made by the Agency in accordance with the schedule set forth in Exhibit 2 and as otherwise necessary to reimburse the City for the cost to the City of performing its obligations hereunder. IV. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code Section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code Section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code Sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code Section 895.2. To achieve the above-stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code Section 895.2. V. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS 1. This Agreement consists of six (6) pages, which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the Agency. Notwithstanding any reference in this Agreement to persons or entities other than the City and the Agency, there shall be no third party beneficiaries under this Agreement. 4. All waivers of the provisions of this Agreement and all amendments to this Agreement must be in writing and signed by the authorized representatives of the parties. VI. SEVERABILITY If any term, provisions, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VII. DEFAULT If either party fails to perform or adequately perform an obligation required by this Agreement within thirty (30) calendar days of receiving written notice from the non-defaulting party, the party failing to perform shall be in default hereunder. In the event of default, the non- defaulting party will have all the rights and remedies available to it at law or in equity to enforce Page 3 8 • the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the non-defaulting party enumerated in this paragraph are cumulative and shall not limit the non-defaulting party's rights under any other provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non-defaulting party against the defaulting party. All notices of defaults shall clearly indicate a notice of default under this Agreement. Vill. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Attest: CITY OF PALM SPRINGS By: By: City Clerk Stephen P. Pougnet, Mayor Attest: REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By: By: Assistant Secretary Stephen P. Pougnet, Chair APPROVED AS TO FORM: By: City Attorney Page 4 Q . EXHIBIT 1 PROJECTS Merged Project No.. 1 Ob' ation Datelncurre4 Outstanding Amount Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $31,200,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Merged Prniect No.2 Obligation Date Incurred Outstandiniz Amount PSL 236 Lease 12/6/2006 $2,970,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Loan from Wastewater Treatment Fund 6/22/1993 $400,000 Loan from Sustainability Fund for PSL 236 Partial Prepayment 12/6/2006 $1,139,871 Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $7,200,000 Page 5 fM . EXHIBIT 2 PAYMENT SCHEDULE Meirged No.1 Me ed Pro'ect Payment Contribution Loan from Loan from Loan from Contribution Date to Convention Wastewater PSL 236 Sustainability Wastewater to Convention June 30 nt Total punk Le Fund PSL,236 Lund en 2011 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2012 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2013 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2014 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2015 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2016 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2017 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2019 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2019 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2020 1,300,000 24,810 110,000 101,106 48,910 300,000 1,884,726 2021 1,300,000 24,810 110,000 101,106 49,810 300,000 1,884,726 2022 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2023 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2024 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2025 1,300,000 24,810 110,000 1.01,106 48,810 300,000 1,884,726 2026 1,300,000 24,810 110,000 101,106 49,810 300,000 1,894,726 2027 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2028 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2029 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2030 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2031 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2032 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2033 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2034 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2035 - 439,310 110,000 - 448,810 - 997,120 2036 - - 110,000 - - 110,000 2037 - - 110,000 - - - 110,000 1,033,750 Total 31,200,000 (1) 2,970,000 1,617,696(1) 1,620,250 (1) 7,200,000 45,641,696 (1) Includes interest Page 6 1 � RESOLUTION NO. RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES WHEREAS, pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et seg.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas, and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing; and WHEREAS, the Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing; and WHEREAS, by providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City of Palm Springs, as follows: 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. 2. The Mayor and City Clerk of the City are hereby authorized and directed to execute and attest to the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses for and in the name and on behalf of the City. The City hereby authorizes the delivery and performance of the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses pursuant to the terms thereof. t2 . ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: City Clerk Stephen P. Pougnet, Mayor Approved as to form: City Attorney RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES WHEREAS, pursuant to the Community Redevelopment Law (Califomia Health and Safety Code Section 33000, et M.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas, and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing; and WHEREAS, the Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing; and WHEREAS, by providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. 2. The Chairman and Assistant Secretary of the Agency are hereby authorized and directed to execute, and attest to the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses pursuant to the terms thereof. ILL ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Assistant Secretary STEPHEN P. POUGNET, CHAIRMAN Community Redevelopment Agency of the City of Palm Springs COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES THIS AGREEMENT is made as of the 18th day of January, 2011, by and between the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs (the Agency"). RECITALS A. Pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, ptt seg.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing. B. The Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing. C. The Agency has issued its tax allocation obligations to finance various public improvements. D. By providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency. E. The City and the Agency desire to enter into this Agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the city. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. Section 2. The value of the staff resources, office space, equipment, supplies, insurance and other services and facilities, which, for purposes of this Agreement shall be (i) no less than $1,000,000 per each fiscal year plus an amount for planning and administrative expenses in connection with the expenditure of moneys in the Agency's low and moderate income housing fund or (ii) such other amount as may be determined by the City Manager pursuant to Section 4 hereof, shall constitute a loan for the administrative expenses and 1 l�e. overhead of the Agency, including the planning and administrative expenses of the Agency in connection with the expenditure of moneys in the Agency's low and moderate income housing fund, to be repaid in accordance with this Agreement. Section 3. On or prior to July 1 st of each year, each of the department heads in the City shall prepare and submit to the City Administrator an accounting of time spent during the immediately preceding fiscal year by department personnel on matters for or related to the Agency; the implementation of the overall program for the redevelopment of blighted areas within the City; and any undertaking in furtherance of any redevelopment plan by the City, the Agency, or any related or subordinate public entity of the foregoing. Such accounting shall separately account for time spent during the immediately preceding fiscal year by department personnel on matters for or related to the production, improvement and preservation of affordable housing. Each department head shall also prepare and submit to the City Manager an accounting of the use of all office space, equipment supplies, insurance, and other City services and facilities used by department personnel in connection with time spent on the foregoing, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Section 4. Based upon the foregoing accountings prepared and submitted by each of the department heads, the City Manager shall determine the time spent on matters related to redevelopment as a percentage of the aggregate time spent on all matters. Of the time spent on matters related to redevelopment, the City Manager shall separately determine the amount of time spent on matters related to the production, improvement and preservation of affordable housing. The City Manager shall further determine the fair rental value of the office space and equipment, and the value of supplies, insurance, and other City services and facilities used during such fiscal year, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Based upon the percentage of staff time spent on matters related to redevelopment, as calculated above, the City Manager shall determine a fair, reasonable and appropriate rental amount to charge to the Agency for the use thereof during such fiscal year. Section 5. The Agency shall pay to the City, upon demand, the time charges and the fair rental value of office space, equipment, supplies, insurance and other City services and facilities used during such fiscal year, the value of which is set forth in Section 2 hereof. The Agency shall pay such time charges and fair rental value from any funds of the Agency lawfully available therefore, except that time charges and the fair rental value related to the production, improvement and preservation of affordable housing shall be paid from moneys in the Agency's low and moderate income housing fund provided that such planning and administrative expenses are necessary for the production, improvement or preservation of affordable housing and are authorized pursuant to Health and Safety Code Section 33334.3 to be paid from moneys in the Agency's low and moderate income housing fund, provided, however, that the foregoing obligation of the Agency shall be subordinate to any bonds, notes or other obligations of the Agency. Except with respect to the allocation of the payment of the time charges and rental value related to the production, improvement and preservation of affordable housing which shall be allocated to the Agency's low and moderate income housing fund, the Agency shall allocate the payment of the time charges and rental value related to redevelopment among its Project Areas as follows: 70% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 1; and 30% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 2. The foregoing percentages of allocation reflect the pro rate percentages of each of the Project Areas. 2 Section 6. Upon request of the Executive Director, the City shall advance moneys to the Agency from time to time for the purpose of paying legal, consulting, auditing, and other fees, costs and expenses necessary, desirable or appropriate in connection with the redevelopment activities of the Agency. The Agency shall repay such moneys upon demand by the City. Section 7. Amounts not paid by the Agency to the City upon demand therefore pursuant to this Agreement shall bear interest at the rate of 12 percent per annum from the date of such demand. CITY OF PALM SPRINGS By Stephen P. Pougnet, Mayor ATTEST: City Clerk COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By Stephen P. Pougnet, Chairman ATTEST: Assistant Secretary APPROVED AS TO FORM: City Attorney and Agency Counsel 3 1� 0 Jay Thompson From: David Ready Sent: Friday, January 14, 2011 5:30 PM To: Chris Mills; Chris Mills Home; Ginny Foat; Ginny Foat- Home; Lee Weigel; Lee Weigel - Home; Rick Hutcheson; Rick Hutcheson; Rick Hutcheson - Home; Steve Pougnet; Steve Pougnet- Home Cc: Jay Thompson; 'Douglas C. Holland' Subject: FW: Staff Report- including both agreements and resolutions Attachments: Staff Report-Agreements and Resolutions.pdf; image001.png Council, Attached is the staff report and agreements/resolutions for our special meeting on Tuesday. Suzanne Harrell has urged us to have the meeting to prevent a possible action by the legislature which would prohibit us from making some of our payment obligations from the Agency. For example, the convention center renovation project is paid for by a transfer each year - normal operating procedure, because it was not funded by an agency bond, rather, they contribute to the General Fund bond for the project. However, Suzanne advises, that if cities create an agreement for the annual payment, that could shield us from the state action. Otherwise, the General Fund would have an additional expense ($1.8 million). Hence, we want to have council approve two agreements, one for the projects, and one for the administration of the community and economic development departments (approx $1 million annually). These are not new debts or costs...we are merely formalizing them by contract with the City to prevent the state from taking our ability to make these transfers, which has always been legal under redevelopment law. A final note, these transactions do not include, or affect the RDA bonds, which are already covered by bond agreement, nor the sale of park land, etc. Suzanne will be here for the meeting to explain the details and provide info on other cities that are doing the same procedure (e.g. L.A. has approved these agreements for over $85 million - and the County is also having a special meeting next week). I'll be giving each of you a call, tomorrow to answer any questions. Thanks David p.s. - we will have hard copies for you at the meeting, and I can drop a set off at your house, if you wish -- please let me know. 1/18/2011 4 p DAVID H. READY, Esq., Ph.D. CITY MANAGER City of Palm Springs Tel: (760)322-8350 3200 E.Tahquitz Canyon Way Fax: (760)323-8207 Palm Springs, CA 92262 TDD: (760)864-9527 www.palmsprings-ca.gov David.Ready(cr7palmsprings-ca.goy From: Paula Sweat Sent: Friday, January 14, 2011 5:14 PM To: David Ready Cc: Tom Wilson; John Raymond; Geoffrey Kiehl; Suzanne Harrell Subject: Staff Report- including both agreements and resolutions Here are the final documents. Paula J. Sweat Economic Development Program Assistant City of Palm Springs 3200 E.Tahquitz Canyon Way Palm Springs,CA 92262 Phn: 760-322-8321 Fax: 760-322-8325 email:paula.sweat(cDpalmspringsca.gov Palm Springs City Hall Hours: Monday-Thursday 8:00 a.m.to 6:00 p.m. Please consider the environment before printing this email IA 1/18/2011 QALM$a u m Redevelopment Agency Staff Report DATE: January 18, 2011 SUBJECT: APPROVAL AND EXECUTION OF AGREEMENTS FOR AGENCY STAFF SERVICES AND REIMBURSEMENT FOR PREVIOUSLY INCURRED OBLIGATIONS FROM: David H. Ready, Esq., Ph.D., City Manager/Executive Director BY: Thomas Wilson,Assistant City Manager John Raymond, Director,Community&Eounomic Development Geoffrey Kiehl, Director of Finance&Treasury SUMMARY The Governor of the State released his Budget proposal on Monday, January 10, 2011. In this budget, the Governor proposes to eliminate redevelopment, and re- direct any tax increment not currently pledged to existing debt or contractual obligations to defray certain costs of the State. The California Redevelopment Association has recommended that agencies carefully document their existing obligations, so that the agencies' tax increment may be protected to provide for these items. Further, the Governor has urged the Legislature to adopt urgency legislation precluding agencies from incurring additional debt. The Legislature could take this action at any time. The Community Redevelopment Agency of the City of Palm Springs has incurred obligations to the City over a number of years and wishes to establish, document and record the repayment schedule for such obligations. Furthermore, the Agency currently contracts with the City to provide staff services to administer its programs and activities and wishes to provide for the reimbursement to the City for such services. If approved, the resolutions would authorize the execution of two agreements between the City and the Agency relating to these transactions. One agreement I will formalize certain existing obligations the Agency has to the City, which were approved in accordance with the California Redevelopment Law, such as the contribution to Convention Center debt and certain interfund loans. The other agreement would provide for long.-term staffing costs relating to the administration of the Agency, in-lieu of the Agency's current year-to-year contract. Given the lack of credible information as to the Governor's timeline or the State Department of Finance's progress on drafting any such urgency legislation, it is prudent to take action at this time to formalize these existing obligations. RECOMMENDATION Acting as the City Council: 1. Approve Resolution No. "RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES" 2. Approve Resolution No. "RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS" Acting as the Agency Board: 3. Approve Resolution No. "RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR PROVIDING FOR REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES" 4. Approve Resolution No. "RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS" FISCAL IMPACT: The Agency is carrying out the redevelopment plans for each of the project areas, and, in that regard, is utilizing the staff and other resources of the City. i The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City i devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing. The Cooperative Agreement provides that the City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. Pursuant to the Agreement, the Agency shall have access to the services and facilities of the planning department, the planning commission, the city engineer and the other departments and offices of the City. Each year, these costs exceed $1,000,000, a portion of which is allocable to each project area. Pursuant to the Agreement, the Agency shall pay the City for such costs. In addition, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City for programs and activities associated with redevelopment of the Agency's project areas (e.g. Convention Center remodel, etc. —see exhibit 1). These annual expenditures total approximately $1.9 million annually. It is important to note, this does not represent additional debt. David H. Ready, Esq., Ph.D. Thomas Wilson City Manager/Executive Director Assistant City Manager John S. Raymond, Director Geoffrey Kiehl, Director Community& Economic Development Finance &Treasury Attachments: Resolutions and Agreements COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES THiS AGREEMENT is made as of the 18th day of January, 2011, by and between the City of Palm Springs(the "City)and the Community Redevelopment Agency of the City of Palm Springs (the Agency"). RECITALS A. Pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et mg.), the City has undertaken a program for the redevelopment of blighted areas In the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing. B. The Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Los Angeles and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing. C. The Agency has issued its tax allocation obligations to finance various public improvements. D. By providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency. E. The City and the Agency desire to enter into this Agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the city. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. Section 2. The value of the staff resources, office space, equipment, supplies, insurance and other services and facilities, which, for purposes of this Agreement shall be (i) no less than $1,000,000 per each fiscal year plus an amount for planning and administrative expenses in connection with the expenditure of moneys in the Agency's tow and moderate income housing fund or (h) such other amount as may be determined by the City Manager pursuant to Section 4 hereof, shall constitute a loan for the administrative expenses and 1 overhead of the Agency, including the planning and administrative expenses of the Agency in connection with the expenditure of moneys in the Agency's low and moderate income housing fund,to be repaid in accordance with this Agreement. Section 3. On or prior to July 1 st of each year, each of the department heads in the City shall prepare and submit to the City Administrator an accounting of time spent during the immediately preceding fiscal year by department personnel on matters for or related to the Agency; the implementation of the overall program for the redevelopment of blighted areas within the City; and any undertaking in furtherance of any redevelopment plan by the City, the Agency, or any related or subordinate public entity of the foregoing. Such accounting shall separately account for time spent during the immediately preceding fiscal year by department personnel on matters for or related to the production, improvement and preservation of affordable housing. Each department head shall also prepare and submit to the City Manager an accounting of the use of all office space, equipment supplies, insurance, and other City services and facilities used by department personnel in connection with time spent on the foregoing, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Section 4. Based upon the foregoing accountings prepared and submitted by each of the department heads, the City Manager shall determine the time spent on matters related to redevelopment as a percentage of the aggregate time spent on all matters. Of the time spent on matters related to redevelopment, the City Manager shall separately determine the amount of time spent on matters related to the production, improvement and preservation of affordable housing. The City Manager shall further determine the fair rental value of the office space and equipment, and the value of supplies, insurance, and other City services and facilities used during such fiscal year, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Based upon the percentage of staff time spent on matters related to redevelopment, as calculated above, the City Manager shall detenmine a fair, reasonable and appropriate rental amount to charge to the Agency for the use thereof during such fiscal year. Section 5. The Agency shall pay to the City, upon demand, the time charges and the fair rental value of office space, equipment, supplies, insurance and other City services and facilities used during such fiscal year, the value of which is set forth in Section 2 hereof. The Agency shall pay such time charges and fair rental value from any funds of the Agency lawfully available therefore, except that time charges and the fair rental value related to the production, improvement and preservation of affordable housing shall be paid from moneys in the Agency's E low and moderate income housing fund provided that such planning and administrative f expenses are necessary for the production, improvement or preservation of affordable housing and are authorized pursuant to Health and Safety Code Section 33334.3 to be paid from moneys in the Agency's low and moderate income housing fund; provided, however, that the foregoing obligation of the Agency shall be subordinate to any bonds, notes or other obligations of the Agency. Except with respect to the allocation of the payment of the time charges and rental value related to the production, improvement and preservation of affordable housing which shall be allocated to the Agency's low and moderate income housing fund, the Agency shall allocate the payment of the time charges and rental value related to redevelopment among its Project Areas as follows: 70% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 9; and 30% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 2. The foregoing percentages of allocation reflect the pro rata percentages of each of the Project Areas. 2 Section 6. Upon request of the Executive Director, the City shall advance moneys to the Agency from time to time for the purpose of paying legal, consulting, auditing, and other fees, costs and expenses necessary, desirable or appropriate in connection with the redevelopment activities of the Agency. The Agency shall repay such moneys upon demand by the City. Section 7. Amounts not paid by the Agency to the City upon demand therefore pursuant to this Agreement shall bear interest at the rate of 12 percent per annum from the date of,such demand. CITY OF PALM SPRING$ By Stephen P. Pougnet, Mayor ATTEST: City Clerk COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS E 4 By Stephen P. Pougn at, Chairman ATTEST: Assistant Secretary APPROVED AS TO FORM: City Attorney and Agency Counsel 3 i RESOLUTION NO. RESOLUTION OF THE CITY OF PALM SPRINGS + AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES WHEREAS, pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et M.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas, and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing; and WHEREAS, the Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing; and WHEREAS, by providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City of Palm Springs, as follows: 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City, 2. The Mayor and City Clerk of the Agency are hereby authorized and directed to execute and attest to the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses for and in the name and on behalf of the City. The City hereby authorizes the delivery and performance of the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses pursuant to the terms thereof. i ADOPTED this I8th day of January, 2011, by the following vote: AYES: NOES: ASSENT: ATTEST: City Clerk Stephen P. Pougnet, Mayor Approved as to form: City Attorney i i RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING : FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES WHEREAS, pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et sM.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas, and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing; and WHEREAS, the Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing,the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing; and WHEREAS, by providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment,supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: 9. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. 2. The Chairman and Assistant Secretary of the Agency are hereby authorized and directed to execute, and attest to the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Cooperative Agreement for the Advance and Reimbursement of Administrative and Overhead Expenses pursuant to the terms thereof. ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Assistant Secretary STEPHEN P. POUGNET, CHAIRMAN Community Redevelopment Agency of the City of Palm Springs i REIMBURSEMENT AGREEMENT FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN COMMUNITY REDEVELOPMENT AGENCY FUNDED CAPITAI,IMPROVEMENTS THIS REIMBURSEMENT AGREEMENT (the "Agreement") is entered into this 18th day of January, 2011, by and between the CITY OF PALM SPRINGS (the "City") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS (the "Agency"),with reference to the following facts: A. The Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which results in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment. B. The intent of the Redevelopment Plans is, in part, to provide for the construction and installation of necessary public infrastructure and facilities and to facilitate the repair, restoration and/or replacement of existing public facilities and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Areas; and to increase, improve and preserve the community's supply of low and moderate income housing, some of which may be located or implemented outside the Redevelopment Project Areas; and to take all other necessary actions to implement the redevelopment plans for the respective redevelopment projects and to expend tax increment to accomplish the goals and objectives of the respective redevelopment projects. C. Pursuant to California Redevelopment law, section 33220, certain public bodies, including the City may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment projects. The Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City for programs and activities associated with the programs and activities listed in the attached Exhibit 1, which are incorporated herein by this reference (the"Projects"). D. The Agency wishes to enter into this Agreement with the City for the pledge of net available tax increment to repay amounts borrowed or otherwise to be reimbursed for the Projects. The purpose of this Agreement is to record the Projects to be funded with net available tax increment in this current fiscal year and forthcoming fiscal years. E. Net available tax increment is defined as any tax increment, net of existing debt service payments, and existing contractual obligations received by the Agency or any lawful successor of the Agency and/or to any of the powers and rights of the Agency pursuant to any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. The pledge of net available tax increment will constitute obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations set forth in this Agreement will be contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. Page 1 1 F. The City Council (the "Council") and the Agency by resolution have each found that the use of Agency redevelopment funding for the Projects was, if applicable, in accordance with Section 33445 of the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) CCRL") and Section 33445(a) of the CRL and other applicable law at time the financial obligation for Projects was originally incurred. The said Council and Agency resolutions are each based on the authority of the Agency, with the consent of the Council, to pay all or part of the cost of the installation and construction of any building,facility, structure, or other improvements which is publicly owned either within or outside a project area, if the Council makes certain determinations, G. By approving and entering into this Agreement, the Agency has approved the pledge of net available tax increment from the Project Areas to pay for the Projects. H. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the Redevelopment Plans for the Project Areas. NOW, THEREFORE, the parties hereto do mutually agree as follows: I. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. AGENCY'S OBLIGATIONS 1. The Projects are those projects which are listed on the attached Exhibit 1, which is incorporated herein by this reference. The Agency's obligations under this Agreement, including without limitation the Agency's obligation to make the payments to the City required by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of the Project Areas and are obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations of the Agency set forth in this Agreement are contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. 2. The obligations of Agency under this Agreement shall be payable out of net available tax increments, as defined in the above recitals and/or as defined or provided for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the Redevelopment Project Areas, and allocated to the Agency and/or any lawful successor entity of the Agency and/or any entity established by law to carry out any of the redevelopment plans for the Project Areas and/or expend tax increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670, et seq., of the California Community Redevelopment Law or any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, in the minimum amounts set forth in the Payment Schedule attached hereto as Exhibit 2 and incorporated herein by this reference. 3. The indebtedness of Agency under this Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes,or other instruments of indebtedness (all referred to herein as"indebtedness") of the Agency incurred or issued to finance the Project Areas, including without limitation any pledge of tax increment revenues from the Project Areas Page 2 to pay any portion of the principal (and otherwise comply with the obligations and covenants) of any bond or bonds issued or sold by Agency with respect to the Redevelopment Project Areas. 4. All payments due to be made by the Agency to the City under this Agreement shall be made by the Agency in accordance with the schedule set forth in Exhibit 2 and as otherwise necessary to reimburse the City for the cost to the City of performing its obligations hereunder. IV. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code Section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code Section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code Sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code Section 896.2. To achieve the above-stated purpose, each parry indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code Section 895.2. V. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS 1. This Agreement consists of six (6) pages, which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the Agency. Notwithstanding any reference in this Agreement to persons or entities other than the City and the Agency, there shall be no third party beneficiaries under this Agreement. 4. Ail waivers of the provisions of this Agreement and all amendments to this Agreement must be in writing and signed by the authorized representatives of the parties. i VI. SEVERABILITY I if any term, provisions, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VII. DEFAULT If either party fails to perform or adequately perform an obligation required by this Agreement within thirty (30) calendar days of receiving written notice from the non-defaulting party, the party failing to perform shall be in default hereunder. In the event of default, the non- defaulting party will have all the rights and remedies available to it at law or in equity to enforce Page 3 the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the non-defaulting party enumerated in this paragraph are cumulative and shall not limit the non-defaulting party's rights under any other provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non-defaulting party against the defaulting parry. All notices of defaults shall clearly indicate a notice of default under this Agreement. Vill. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Attest: CITY OF PALM SPRINGS By: By: City Clerk David H. Ready, Esq., Ph.D. City Manager Attest: REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By: By: Assistant Secretary Stephen P.'Pougnet, Chair APPROVED AS TO FORM: By: City Attorney Page 4 1 EXHIBIT 1 PROJECTS Me ed Ppject No. I QbfigLtLon Date Incurred Outstanding Amount Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $31,200,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Merged Project No.2 Obligation Date Incurred O tstanding Amount PSL 236 Lease 12/6/2006 $2,970,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Loan from Wastewater Treatment Fund 6/22/1993 $400,000 Loan from Sustainability Fund for PSL 236 Partial Prepayment 12/6/2006 $1,139,871 Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $7,200,000 Page 5 i EXHIBr r 2 PAYMENT SCHEDULE Mewed No.1 Merge_d_Pro!0 No.2 Payment Contribution Loan from Loan fkom Loan from Contribution Date to Convention Wastewater PSL 236 Sustainabiiity Wastewater to Convention Lune 30 Canter Elmd Fund 1'SL 236 Fund Center low 2011 1,300,000 24,810 110,000 101,106 48,810 300,000 1,$84,726 2012 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2013 1,300,000 24,810 110,000 101,106 48,810 300,000 1,894,726 2014 1,300,000 24,810 110,000 101,106 48,810 300,000 1,894,726 2015 1,300,000 24,810 110,000 101,106 48,810 300,000 1,894,726 2016 1,300,000 24,810 110,000 101,106 48,810 300,000 I,884,726 2017 1,300,000 24,010 110,000 101,106 48,810 300,000 1,884,726 2018 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,126 2019 1,300,000 24,810 110,000 101,106 48,910 300,000 1,884,726 2020 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 202) 1,300,000 24,810 110,000 101,106 48,810 300,000 1,984,726 2022 1,300,000 24,810 1 t0,000 101,106 48,810 300,000 1,884,726 2023 1,300,000 24,910 110,000 101,106 48,810 300,000 1.894,726 2024 1,300,000 24,810 110,000 101,106 48,810 300,000 1,894,726 2025 1,300,000 24,810 110,000 101,106 48,910 300,000 1,884.726 2026 1,300,000 24,810 110,000 101,106 49,910 300,000 1,894,726 2027 1,300,000 24,810 I10,000 48,810 300,000 1,783,620 2028 1,300,000 24,910 110,000 - 48,810 300,000 1,783,620 2029 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2030 1,300.000 24,310 110,000 - 48,810 300,000 1,783,620 2031 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2032, 1,300,000 24,810 110,000 - 49,810 300,000 1,783,620 2033 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2034 1,300,000 24,810 110,000 - 48,810 300.000 1,783,620 2035 - 438,310 110,000 448,810 - 997,120 2036 - - 110,000 - - - I10,000 2037 - - 110,000 - - - 110,000 1,033,750 Total 31,200,000 (1) 2,970,000 1,617,696(1) 1,620,250 (1) 720Q000 45,641,696 (1) Includes interest Page 0 RESOLUTION NO. RESOLUTION OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS WHEREAS, the Community Redevelopment Agency of the City of Palm Springs has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City of Palm Springs for programs and activities associated with its redevelopment programs and activities; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such obligations by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City of Palm Springs, as follows: I. The Mayor-and City Clerk of the Agency are hereby authorized and directed to execute and attest to the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements for and in the name and on behalf of the City. The City hereby authorizes the delivery and performance of the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements pursuant to the terms thereof. ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: City Clerk STEPHEN P. POUGNET, CHAIRMAN Community Redevelopment Agency of the Approved as to form: City of Palm Springs City Attorney RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CITY OF PALM SPRINGS PROVIDING FOR REIMBURSEMENT OF CERTAIN AGENCY FUNDED CAPITAL IMPROVEMENTS WHEREAS, the Community Redevelopment Agency of the City of Palm Springs has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which result in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment; and WHEREAS, the Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City of Palm Springs for programs and activities associated with its redevelopment programs and activities; and WHEREAS, the City and the Agency desire to enter into an agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such obligations by the Agency to the City. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: 1. The Chairman and the Assistant Secretary of the Agency are hereby authorized and directed to execute, and attest to the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the Reimbursement Agreement for Payment of Costs Associate with Certain Agency Funded Capital Improvements pursuant to the terms thereof. ADOPTED this 18th day of January, 2011, by the following vote: AYES: NOES: ABSENT: ATTEST: Assistant Secretary STEPHEN P. POUGNET, CHAIRMAN Community Redevelopment Agency of the City of Palm Springs