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CITY OF INDIO AGENDA REPORT

March 3, 2004

TO:

Mayor and Council

THRU:

Tom Ramirez, City Manager

FROM:

Jerry Carter, Finance Director ("

SUBJECT: Adoption of Goals and Policies for Community Facilities Districts and Assessment Districts

SUMMARY: At the January 7, 2004 Council meeting, a desire was expressed to have the goals and policies on debt financing formalized into a written document. With the contemplation of establishing a Community Facilities District for Public Safety, a formal written document is required also. Staff has created these policies on debt financing as a guideline to assist all concerned parties in determining the City's approach to land secured financing. It is the City's intent to support projects which address a public need and provide a public benefit.

Previous Council Action: At the January 7, 2004 Council Meeting, Council voiced support of debt financing in the form of Assessment Districts when necessary for development addressing a public need and provide a public benefit.

Financial Implications: The City of Indio incurs no financial liability in an Assessment District or Community Facilities District.

Recommendation:

and Policies for Community Facilities Districts and Assessment Districts.

Proposed Motion: Move approval of resolution approving Local Public Agency Goals and Policies for Community Facilities Districts and Assessment Districts.

Staff recommends approval of resolution accepting the Goals

List of Attachments:

A. Goals and Policies B. Resolution

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO ADOPTING GOALS AND POLICIES PURSUANT TO THE MELLO- ROOS COMMUNITY FACILITIES ACT OF 1982

WHEREAS, the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act") provides that on and after January 1, 1994, a local agency may initiate proceedings to establish a district pursuant to the Act only if it has first considered and adopted local goals and policies concerning the use of the Act; and

WHEREAS, the City Council ("Council") of the City of Indio (the "City") desires to initiate proceedings to form community facilities districts to finance certain public capital improvements and/or services,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The Council hereby adopts the "Local Public Agency Goals and Policies for Community Facilities Districts and Assessment Districts, " a copy of which is attached hereto and a copy of which shall be kept on file with the Office of the City Clerk.

Section 2. This Resolution shall take effect from and after the date of its passage and adoption

PASSED, APPROVED AND ADOPTED this day of following vote:

AYES:

NOES:

ABSENT:

, 2004, by the

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

JACQUELINE BETHEL, MAYOR

45426322. I

A-1

LOCAL PUBLIC AGENCY GOALS AND POLICIES FOR COMMUNITY FACILITIES DISTRICTS AND ASSESSMENT DISTRICTS

MARCH 2004

TABLE OF CONTENTS

SECTION 1:

GENERAL POLICY STATEMENT

1

SECTION

II: INITIATION OF THE FINANCING

2

SECTION

III: ECONOMIC VIABILITY OF THE FINANCING

4

SECTION IV: REVENUE SUPPORTING THE FINANCING

6

SECTION V: STRUCTURE OF THE FINANCING

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SECTION VI: AGREEMENTS WITH AFFECTED PUBLIC ENTITIES

12

SECTION

VII: CREDIT ENHANCEMENTS

12

SECTION VIII: OFFERING STATEMENT

14

SECTION

IX: ADMINISTRATION

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SECTION

X:

EXEMPTIONS TO THESE POLICIES

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SECTION I: GENERAL POLICY STATEMENT

The City of Indio (the "City") has created these policies on debt financing (the "Policies") as a guideline to assist all concerned parties in determining the City's approach to land secured financing. It is the City's intent to support projects which address a public need and provide a public benefit. These policies are also designed to comply with Section 53312.7(a) of the Government Code.

1. The City Council (the "City Council") will consider the use of community facilities districts ("community facilities districts"), or fixed lien special assessments districts ("assessment districts") as well as other methods of public financing to assist residential projects.

2. The use of community facilities districts or assessment districts will be permitted to finance public facilities whose useful life will be equal to or greater than the term of the bonds, including fees associated with such public facilities. Except for maintenance and operation of public facilities being financed, the use of community facilities districts for funding those services identified as eligible by the Mello-Roos Community Facilities Act of 1982, as amended, shall not be allowed except when sponsored by or required by the City Council. Facilities which are, upon completion, owned, operated or maintained by public agencies shall be considered public facilities. Limited exceptions will be made for facilities to be owned, operated or maintained by private utilities.

The City is concerned that the proposed project that is to be financed is not premature for the area in which it is to be located. The proposed project must be consistent with the City's General Plan.

Projects that require: (i) a General Plan amendment; (ii) a change of zone that increases the density or intensity of land use, (iii) a specific plan, or (iv) a specific plan amendment to increase density or intensity of land use will require an evaluation by the City as to whether the proposed project is premature.

3. Extending public financing to a proposed project for identified public improvements, or to pay development/impact fees associated with a proposed project, cannot be done without considering the aggregate public service needs for the project. Upon receipt of an application for public financing, the City will

notify the other public entities having responsibility to service the proposed

Must consider aggregate public service needs for the project.

project and request comment on the application.

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4. These Policies are not to be applied to land secured financing(s) that require an aggregate principal amount of bonds of less than $1,000,000 for the construction of public facilities for developed residential properties and that are to be structured pursuant to the Improvement Act of 1911 (Section 5000 et seq. of the Streets and Highways Code), Chapter 27 Part 3, Division 7 of the Streets and Highways Code (Commencing at Section 5870), or similar statutory authority.

5. Application for such financing shall be made to the Finance Director.

6. Priority will first be given for financing public facilities, such as water mains, sewer mains and electrical conduit. Connection or development impact fees related to such facilities may also be financed.

SECTION II: INITIATION OF THE FINANCING

A. Application

The proponent (and property owner, if not the proponent) of a project must obtain and submit the required application to the City's Finance Director.

Prior to accepting an application for a land secured financing, the Finance Director may request that the proposed project be reviewed and commented on by a special district committee to be composed of representatives of any potentially affected City departments, City Attorney, and City's financing advisors.

An application must be completed and the necessary information provided, as determined by the Finance Director, before any action will be taken to process the application and initiate financing for a project.

B. Processing and Formation Fees

All costs to the City associated with the proceedings statutorily required to establish either a community facilities district or an assessment district are to be advanced by the applicant and paid prior to the actual sale of any bonds. The applicant will be reimbursed solely from the proceeds of the bonds sold for all monies advanced.

An initial deposit in an amount of not less than $50,000 is to be attached to the completed application submitted; such deposit amount to be determined from time to time by the Finance Director. The deposit shall be placed in a separate interest bearing trust account held by the City. All costs of the City and/or its consultants retained during the formation process are to be paid from this account. The application will not be considered complete without payment of the deposit.

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If, in the judgment of the Finance Director, the costs incurred or projected will cause the balance in this account to fall below $5,000, a written demand shall be made to the applicant to advance monies sufficient to bring the account balance that is projected to meet remaining costs required to establish the financing district. Failure to advance the requested monies within 10 (ten) days of a written demand by the City will result on all processing of the application to cease and no further actions to be taken toward establishing the financing district until the monies have been received. Waiver of this requirement or of the deposit can be made only by formal action of the City Council.

Monies held in the trust account are to be applied to pay the City and its staff in reviewing and processing the application as well as the costs of the assessment engineer, special tax consultant, appraiser, absorption consultant, all publication expenses, and any other costs determined by the City to be necessary to establish the financing district.

Accompanying the application will be an agreement governing the processing or formation fee, its deposit in a trust account, the use of the monies, the return to the applicant of any unused portion of the fee or other monies advanced, and reimbursement of all monies advanced from bond proceeds.

Petition for Formation and Waiver of Time Requirement of the Election

Community Facilities Districts

The Mello-Roos Community Facilities Act of 1982, as amended, (the "Act") requires that a petition requesting the formation of a proposed community facilities district signed by landowners holding title to ten percent (10%) if the land by area within the proposed community facilities district be submitted to the City before formal action can be commenced to form the community facilities district. The form of the petition will be supplied by bond counsel once the completed application has been received and initial processing has been completed.

The Act also provides that the length of time required for formation can be shortened if one hundred percent (100%) of the property owners within the proposed boundaries of the community facilities district execute a waiver regarding the timing of and certain procedures associated with the required special election. The applicant should indicate on the application whether this waiver can be secured.

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2. Assessment Districts

The City will expect that the applicant for an assessment district will be able to secure signatures from a sufficient number of landowners within the proposed assessment district on a petition, the form of which is to be supplied by bond counsel, to satisfy the Special Assessment Investigation Limitation and Majority Protest Act of 1931. This act requires signatures from landowners representing at least sixty percent (60%) of the land area within the proposed boundaries of the assessment district.

C.

Selection of Financing Team

The City shall select the bond counsel, financial advisors, underwriter or placement agent or remarketing agent, and fiscal agent/trustee. It will require the retention of underwriter and/or disclosure counsel. Providers of letters of credit, liquidity supports and other types of credit enhancements are also subject to the approval of the City.

In addition to the consultants that compose the financing team, as noted above, the City shall select an assessment engineer for assessment district or special tax consultant for community facilities district to determine a fair and reasonable method to allocate the assessment or special tax required to meet debt service on the bonds and other related expenses of the proposed financing district.

Unless satisfactory and current information regarding land values for property within the proposed financing district is available, the district shall require that a real estate appraiser of its choice be retained and an appraisal made. Additionally, an economist or real estate appraiser or other qualified independent third party may also be retained for the purpose outlined in Section IILA. In addition, the City reserves the right to retain additional professional consultants that it deems appropriate.

SECTION III: ECONOMIC VIABILITY OF THE FINANCING

In evaluating the application and the proposed debt issue, the City may require any or all of the following to determine the economic viability of the proposed project and the timing of the sale of any bonds or series thereof.

A. Absorption Study

Unless waived by the Finance Director, an absorption study of the proposed project shall be required for land secured financing. The absorption study shall be used as a basis to verify that the assumptions supporting the assessment spread or the special tax formula are appropriate and sufficient revenues can be colleted to support the bonded indebtedness to be incurred.

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The absorption study will also be used to evaluate the timing considerations identified by the applicant and the financing team. The absorption study will be provided to the appraiser and the appraisal required below in Section III.B is to reflect consideration of the absorption study.

B. Appraisal

A current appraisal will be required of the property that comprises the financing district

against which a lien will be placed to secure the bonded indebtedness to be incurred. The appraisal will be made by an appraiser retained by the City. It is to be made consistent with the guidelines attached hereto as "Attachment A." An appraisal may be waived by the Finance Director for any properties that have been developed with residential units and sold to individuals. These properties may be valued at (1) the then-current assessed value or (2) if the sale transaction is not yet recorded on the County Assessor's tax roll, the documented sale price.

The "Bulk Land Value" as specified in "Attachment A" will serve as the basis for establishing the land value to lien ratios for transactions involving undeveloped parcels. The City requires, for residential projects, an overall minimum land value to lien ratio of 3 to 1. The lien component of the ratio is to include all debt represented by any overlapping community facilities district or assessment district affecting the property. The City will also review the land value to lien ratios on an individual parcel and/or grouping of parcels within the boundaries of the financing district to determine the security of the debt issue.

C. Financial Information Required of Applicant

Both at time of application and prior to the sale and issuance of any bonds, the applicant for a land secured debt issue and all property owners owning property within the boundaries of the proposed financing district that will be responsible for twenty percent (20%) or more of the debt service on the bonded indebtedness to be incurred shall provide financial statements (preferably audited) for the current and prior two fiscal years. The applicant shall also provide all other financial information related to the proposed project that may be requested by the City. This information may be disclosed

in the official statement_

Subsequent to the sale and issuance of the bonds, federal and state statutes and/or

regulations regarding the particular type of financing may require the preparation of periodic reports. The applicant and all major participants in the project will be required

to provide infoimation needed to complete such statutorily required reports. In addition,

the City department or related City or agency responsible for the administration of the bonds may require information of the applicant or the major participants in the project to satisfy reporting demands for rating agencies or institutional buyers.

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D.

Land Use Approvals

For land secured financing the City will require, at a minimum, that the proposed project must:

be consistent with the General Plan;

2. have had the service levels for the required public facilities established or the exact public facilities required for the project identified.

A proposed project that requires: (i) a General Plan amendment, (ii) a change of zone

that increases the density or intensity of land use, (iii) a specific plan, or (iv) a specific

plan amendment that increases the density or intensity of land use will be referred to the Finance Director for evaluation as to whether the project is premature.

An appropriate environmental review by the local governing body of the proposed project

is to have been completed separately before issuance of the bonds that will have

addressed all of the public facilities that are to be constructed through the proposed financing.

E. Equity Participation by Applicant and Major Participants

In evaluating the proposed debt issuance, the City will consider the equity participation of

the applicant and the major participants in the proposed project. At the time the application for the proposed financing is received, an analysis will be made as to the equity interest that the applicant has in the proposed project. It will also be required of

the applicant that in addition to the financing, the applicant will fund in-tract infrastructure and may be expected to contribute to other public improvements related to the proposed project.

SECTION 1V: REVENUE SUPPORTING THE FINANCING

Land secured bonds are termed "limited obligations" whose primary repayment is secured, in the case of a community facilities district, by a special tax, or in the case of an assessment district, by a confirmed assessment lien. The following are the criteria that will be applied in evaluating the revenue stream that will be supporting a proposed land secured bond financing.

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1. Community Facilities Districts

a. The rate and method of apportionment of the special tax must be both reasonable and equitable in apportioning the costs of the public facilities to be financed to each of the parcels within the boundaries of the proposed district. The City prefers that this apportionment of costs be based on the benefit that each parcel is to receive from the public facilities.

b. The rate and method of apportionment of the special tax is to provide for the administrative expenses of the proposed District, including, but not limited to, those expenses necessary for the enrollment and collection of the special tax and bond administration.

c. All property not otherwise exempted by the Act from taxation shall be subject to the special tax. The rate and method of apportionment may provide for exemptions to be extended to parcels that are to be dedicated at a future date to public entities, held by a home owner's association, or designated open space.

d. The annual special tax levy on each residential parcel developed to its final land use shall be approximately equal each year, except that the City will allow an annual escalation factor, not to exceed two percent (2%).

e. The maximum annual special tax, together with ad valorem property taxes, county service area charges, special assessments or taxes for an overlapping financing district, or any other charges, taxes or fees payable from and secured by the property, including potential charges, taxes or fees relating to authorized but unissued debt of public entities other than the district, in relation to the expected assessed value of each parcel upon completion of the private improvements to the parcel is of great importance to the City in evaluating the proposed financing.

The objective of the City is to limit the "overlapping" debt burdens on any parcel to two percent (2%) of the expected assessed value of the parcel upon completion of the private improvements. In evaluating whether this objective can be met, the City will consider the aggregate public service needs for the proposed project. It will consider that public improvements the applicant is proposing be financing in relation to these aggregate needs and decide what is an appropriate amount to extend in public financing to the identified public improvements.

This evaluation will be based on information obtained from other affected taxing entities that have jurisdiction to impose a levy on the proposed project.

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f. The total maximum special taxes that can be collected from taxable property in a district, taking into account any potential changes in land use or development density or rate, and less all projected administrative expenses, must be equal to at least one hundred ten percent (110%) of the gross annual debt service on any bonds issued by or on behalf of the district in each year that said bonds will remain outstanding.

g. The rate and method or apportionment of the special tax shall include a provision for a back up tax to protect against any changes in development that would result in insufficient special tax revenues to meet the debt service requirements of the District. Such back up tax shall be structured in such a manner that it shall not violate any provisions of the Act regarding cross-collateralization limitations for residential properties.

h. A formula to provide for the prepayment of the special tax may be provided; however, neither the City nor the community facilities district shall be obligated to pay for the cost of determining the prepayment amount which is to be paid by the applicant.

Assessment Districts

a. The apportionment of the assessment lien among the parcels comprising the proposed assessment district shall be based upon the direct and special benefit each parcel received from the public facilities to be financed.

b. The assessment lien is to provide for the administrative expenses of the assessment district including, but not limited to, those expenses necessary for the enrollment and collection of the annual assessment installments and bond administration.

c. All property within the boundaries of the proposed assessment district not statutorily exempted by the applicable provision of the California Streets and Highways Code will be subject to an assessment lien.

d. The annual assessment installment levied on each parcel developed to its final land use shall be approximately equal each year, except that a variation for administrative expenses will be allowed.

e. The annual assessment installment, together with ad valorem property taxes, county service area charges, special assessments or taxes for an overlapping financing district, or any other charges, taxes or fees payable from and secured by property, including potential charges, taxes, or fees relating to authorized but unissued debt of public entities other that the City, in relation to the expected assessed value of each parcel upon completion of the private improvements to the parcel is of great importance to the City in evaluating the proposed financing.

The objective of the City is to limit the "overlapping" debt burden on any parcel to two percent (2%) of the expected assessed value of the parcel upon completion of the private improvements. In evaluating whether this objective can be met, the City will consider what public improvements the applicant is proposing be financed in relation to these aggregate needs and decide what is an appropriate amount to extend in public financing to the identified public improvements.

This evaluation will be based on information obtained from other affected taxing entities that have jurisdiction to impose a levy on the proposed project.

f. Consistent with the applicable statutory provisions of the California Streets and Highways Code, a property owner shall have the right to prepay all or a part of the assessment lien.

3. Reimbursement Revenues

Full or partial reimbursement revenue received from a public agency or entity for construction by the financing district of identified public facilities required to be sized to exceed the service needs of the properties within the financing district shall be considered revenues of the financing district. These reimbursements shall, depending on date of receipt, be used to either augment construction proceeds or to reduce the outstanding bonded indebtedness of the financing district as determined appropriate by the City.

SECTION V: STRUCTURE OF THE FINANCING

In structuring a particular land secured financing, the City and its financing team will insure that the following issues are addressed if determined to be applicable or appropriate for the particular debt issue.

A. Limited Obligation of the City

Both the statutory authority providing for the issuance of the bonds as well as the proceedings resulting in the sale and issuance of the bonds must insure the bonds are limited obligations of the City payable only from the revenue source identified and do not require the expenditure of the general funds or any other revenues of the City to satisfy debt service obligations or to replenish any reserve fund established for the bonds.

B. Structuring of Debt Service

Land secured financing is to be structured with level debt service, or as otherwise permitted in these Policies, and to mature within thirty (30) years of the first scheduled principal payment of the bonds.

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C. Redemption Provisions

1. Prepayment and optional redemption

(a)

Community Facilities Districts

It is the preference of the City that the bonds will have redemption provisions that provide call protection with the maximum premium to be paid not to exceed two percent (2%) and allow for bonds to be redeemed not later than the thirteenth year without premium.

(b) Assessment Districts

It is the preference of the City that the bonds will have redemption provisions that provide that the maximum premium to be paid will not exceed three percent (3%), the term for which the premium is to be paid will not exceed twelve (12) years, and in the thirteenth year, the bonds can be redeemed without premium.

2. Unexpended construction proceeds. If applicable, land secured financing is to have redemption features that will allow the City to use unexpended proceeds to redeem bonds at par upon completion of the public facilities to be financed, or upon the City, in its sole discretion, determining that all or a portion of the public facilities cannot be constructed.

3. Open market purchase. The City shall be permitted, in lieu of redeeming bonds, to purchase bonds on the open market at a price not to exceed par plus accrued interest.

D. Reserve Funds

The City will require that for land secured financing, a reserve fund be established at a required funding level as determined appropriate by the financing team. For land secured financing, the City has determined the appropriate funding level to be the lesser of:

1 maximum annual debt service on all bonds then outstanding; or,

2. one hundred twenty-five percent (125%) of average annual debt service on all bonds then outstanding; or

3. ten percent (10%) of the original proceeds of the bonds; or

4. as otherwise required by federal law.

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E. Capitalized Interest

In land secured financing, the City is concerned with the degree to which property ownership, and therefore the responsibility for payment of the special tax or annual assessment installments, is concentrated in one or more individuals or entities. Capitalized interest is considered a means by which the City can assure itself and bond owners that debt service obligations will be met during the initial year(s) of the financing district. However, the amount of capitalized interest should be balanced against the annual levy on future landowners.

The amount of capitalized interest that will be required to be funded from bond proceeds in a particular land secured financing shall be based on the degree to which the property ownership is concentrated in one individual or entity. Whenever one individual or entity whose land holdings within the financing district is responsible for ten percent (10%) or more of the debt service on the bonds, twelve (12) months of capitalized interest, or an amount determined by the financing team to be adequate, will be required.

F. Foreclosure Covenant

The City will extend the following covenant dealing with judicial foreclosure:

The City covenants for the benefit of the owners of the Bonds that, subject to exception stated in the following sentence, it will commence judicial foreclosure proceedings not later than the October 1 following the Fiscal Year: (a) if the Finance Director determines that there is a delinquency of an assessment/special tax of $2,000 or more for a prior Fiscal Year(s), for any single parcel of land in the District, foreclosure shall be commenced against such parcel of land in the District; (b) if the Finance Director determines that the total amount of delinquent assessments/special tax for the prior Fiscal Year for the entire District, less the total delinquencies under subsection (a) above, exceeds five percent (5%) of the total assessments/special taxes due and payable in the prior Fiscal Year, foreclosure shall be commenced against such parcel of land in the District with a cumulative delinquency of $1,000 or more; and (c) if the Finance Director determines that the total amount of delinquent assessments/special taxes for the prior Fiscal Year for the entire District, less the total delinquencies under subsections (a) and (b) above, exceeds three percent (3%) of the total assessments/special taxes due and payable for the prior Fiscal Year, foreclosure shall be commenced against each parcel of land within the District with any amount of delinquency for the prior Fiscal Year(s), and the City shall diligently pursue to completion such foreclosures. The City shall issue notices of delinquency against all parcels with delinquent Assessments, regardless of amount, within 60 days after the Finance Director has received the Auditor's Report for July of that Bond Year showing such delinquent Assessments. The City shall not be obligated to advance funds in order to maintain the reserve fund at the reserve requirement.

G. Underwriter and Original Issue Discount

The underwriter's discount shall be negotiated and determined solely by the City and shall be competitive with and comparable to such discounts on similar financing being issued by the City or other public entities. The City shall consider any other compensation the underwriter may be receiving in connection with the bond financing in determining the appropriate amount of the discount.

An original issue discount will be permitted only if the City determined that such discount results in a lower true interest cost on the bonds and that, for land secured financing, the use of an original issue discount will not adversely affect the ability of the financing City to construct public facilities identified by the bond documents.

H. Timing of Bond Sale

If the City is to construct the improvements, no issuance and sale of bond or any series of bonds will be completed until plans and bid specifications for the public facilities to be financed by the bonds are final and all required approvals associated therewith have been received, unless the bonds are being issued for the purpose of paying development or impact fees, in which case, the City may intend to combine such amounts with other funds to construct a public facility. However, if the debt issue can be structured in more than one series and if the statutory authority pursuant to which the financing district has been established allows, and the City Council finds that the proposed public facilities have regional and/or other significant public benefit, the initial bond series may finance the design, engineering and preparation of the bid specifications for the public facilities.

SECTION VI:

AGREEMENTS WITH AFFECTED PUBLIC ENTITIES

Joint financing agreement(s) required with other public entities which will own, maintain or operate the facilities to be financed, or whose development fees are being paid, must be adopted and approved by all parties at or prior to the adoption of the resolution establishing the financing district.

SECTION VII:

CREDIT ENHANCEMENTS

Credit enhancements, if required by the City, are utilized either to improve the credit worthiness of the proposed financing or to insure that the debt service requirements of the proposed debt issue are met in a timely manner. It is important to the City of minimize the possibility of a debt issue being placed in default and to insure that sufficient cash flows are available to meet debt service requirements.

The City will examine carefully the provider of the required credit facility and the form that the credit facility will take. The rating of the provider, as well as the provider's capitalization, are of principal concern, and a reduction in either during the term of the credit facility to a level unacceptable to the City may require that an alternate credit facility be secured from an

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acceptable provider. The City reserves the right, in its sole discretion, to determine the acceptability of both the credit facility and its provider.

The nature and terms of the credit facility will vary with regard to the type of financing for which it is being required. If the value-to-lien ratio of particular property within a financing district is 4.0 to 1 or greater, the City will not require a letter of credit or other security enhancements to secure payment of the special taxes or assessments to be levied annually on such properties within the district. However, letters of credit or other security may be required for individual parcels within the district that have a value-to-lien ratio of less than 4.0 to 1. Any security required to be provided by the applicant will be discharged by the City upon the opinion of a state certified appraiser retained by the City, that a value-to-lien ratio of 4.0 to 1 has been attained.

If required by the City, a credit facility having the following terms will be provided:

1. The credit facility will name the City or the financing district as beneficiary.

2. The face amount of credit facility will be equal to twice the amount of the annual debt service obligation for which the property is responsible.

3. The credit facility will have a term of one year and be subject to annual renewal or call.

4. The credit facility may be drawn upon should there be a default by the property owner in the timely payment of the special tax obligation or the annual assessment installment.

5. The face amount of the credit facility will be subject to periodic adjustments should the property owner sell or transfer portions of the property to unrelated third parties.

6. All fees payable on the letter of credit or other security will be the sole responsibility of the applicant or developer, not the City or the district.

For purposes of these Policies, parties will be considered to be related should they be so deemed by the Internal Revenue Code of 1986, as amended, and the regulations promulgated there under. However, the City does reserve the right to apply a stricter standard than that provided by the Internal Revenue Code in determining parties to be related.

The City may, in its sole discretion, require additional credit enhancement for a particular land secured financing if it is determined that it is needed to bring the credit worthiness of the proposed debt issue to a level that is acceptable to the City.

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SECTION VIII: OFFERING STATEMENT

It is the intent of the City to comply with all applicable federal or state requirements regarding disclosure to insure that fair and accurate descriptions of debt issued are provided to the purchasers of the bonds. The City will require retention of counsel by an underwriter or disclosure counsel for any particular land secured financing having an aggregate principal value of $1,000,000 or more. Decisions as to the adequacy of the disclosure will be determined by the City, its counsel, bond counsel and underwriter or disclosure counsel. No preliminary or final offering statement for a particular land secured financing will be released for circulation unless it is deemed final by the City on the advice of its counsel and bond counsel.

The proponent(s) of a particular land secured financing and all principal participants therein are expected to provide the information requested by the City, its counsel, the underwriter, its counsel, disclosure counsel or bond counsel that is deemed necessary for disclosure purposes. Failure on the part of the proponent and any principal participant to comply with such requests will jeopardize completion of the debt issue.

The proponent of a particular land secured financing and all principal participants therein will be required to execute those certificates and provide those written opinions of their respective counsel that are required by the terms of the bond purchase agreement. Failure to do so will result in the bonds not being issued and sold.

SECTION IX: ADMINISTRATION

A. Bond Administration

(1) Community Facilities Districts

These bonds are issued pursuant to bond indentures or fiscal agent agreements which identify the Finance Director of the City to have administrative responsibility for this debt issued. This includes, among other duties, the computation and enrollment of the special tax, payment of principal and interest on the bonds, initiation of foreclosure proceedings with regard to delinquent parcels, and management and investment of monies held in all fund and accounts created by the bond indentures or fiscal agent agreement.

(2) Assessment Districts

These bonds are issued pursuant to bond indentures or fiscal agent agreements that will identify the Finance Director of the City to have administrative responsibly for this debt issued. This includes, among other duties, the computation and enrollment of the annual assessment installment, payment of principal and interest on the bonds, initiation of foreclosure proceedings with regard to delinquent parcels and

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management and investment of monies held in all funds and accounts created by the bond indentures or fiscal agent agreements.

Construction Contract Administration

(1) Acquisition

The City will acquire public facilities to be financed by the proceeds of the bonds upon completion of discreet components of the facilities, or discrete components as approved by the City at its sole discretion.

(2) Reimbursement

At the time of submission of an application for a land secured financing, the Finance Director will consider whether the City will require the public facilities to be constructed by the proponent of the financing as if they were a public work. If this is to be required, the public facilities are to be constructed as public works consistent with all applicable statutory requirements. Design engineering, project management and construction contract administration are to be provided by the financing proponent but subject to oversight and approval by the City.

At the time the financing district is established, the proponent of the financing shall enter into an acquisition funding agreement that will identify the public facilities to be constructed, development or impact fees to be paid and the amount with respect to such facilities or fees. Upon completion of the specified public facilities, if any, the financing district will acquire the completed facilities consistent with the terms of the agreement.

(3) Construction

The City may determine that the public facilities to be financed are to be constructed as a public work with project management and construction contract administration services provided by the City or the related public agency. If this determination is made, then in the resolution of intention for establishing the financing district, the City will find that it is not in the public interest to allow the property owners within the financing district to enter into a contract to construct the public facilities.

Notice to Future Property Owners

The applicant or property owner will be required to disclose the specific special taxes or assessments of the financing district that they have been involved in and any other special tax, assessment or liens on individual parcels to existing and future property owners. In addition to all requirements of law, the City shall require the applicant to provide

-15-

disclosure of such information to the purchasers of property within the financing district and the terms and conditions of bonds issued on behalf of the financing district. Such disclosure requirement shall include notifications to potential property purchasers, as well as methods to notify subsequent property purchasers.

SECTION X:

EXCEPTIONS TO THESE POLICIES

The City may find in limited and exceptional instances that a waiver to any of the above stated policies is reasonable given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings.

**************************************************

-16-

ATTACHMENT A CRITERIA FOR APPRAISALS

Definition of Appraisal

An appraisal is a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of fair market value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

Standards of Appraisal

The format and level of documentation for an appraisal depend on the complexity of the appraisal problem. A detailed appraisal will be prepared for complex appraisal problems. A detailed appraisal will reflect nationally recognized appraisal standards, including, to the extent appropriate, the Uniform Appraisal Standards for Land Acquisition and the CDIAC Appraisal Guidelines (published in 1994). An appraisal must contain sufficient documentation, including valuation data and the appraiser's analysis of the data, to support his or her opinion of value. At a minimum, the appraisal shall contain the following:

1.

The purpose and/or function of the appraisal, a description of the property being appraised, and a statement of the assumptions and limiting conditions affecting the appraisal.

An adequate description of the physical characteristics of the property being appraised, location, zoning, present use, and an analysis of the highest and best use.

All relevant and reliable approaches to arrive at the value consistent with commonly accepted professional appraisal practices. If a discounted cash flow analysis is used, it should be supported with at least one other valuation method such as a market approach using sales that are at the same stage of land development. If more than one approach is utilized, there must be an analysis and reconciliation of approaches to value that are sufficient to support the appraiser's opinion of value.

4.

A description of comparable sales, including a description of all relevant physical, legal and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.

5.

A statement of the value of the real property.

6.

The date of appraisal, signature and certification of the appraiser.

Attachment A-1

Conflict of Interest

No appraiser or review appraiser will have any interest, direct or indirect, in the real property being appraised for the City that would in any way conflict with the preparation or review of the appraisal. Compensation for making an appraisal will not be based on the amount of the valuation.

Appraisal Premises

The valuation of the proposed district should be based on three premises:

1.

Raw Land Value- (Premise #1): The total land within the project is valued "as is."

(a)

With any existing infrastructure.

(b)

Without proposed infrastructure being financed.

(c)

With existing parcel configuration.

(d)

Considering planned densities allowed by the specific site plan of the project.

This is a typical type of land valuation.

2. Project Buildout Value-(Premise #2): The total land within the project is valued under projected conditions.

(a)

With proposed infrastructure being financed completed.

(b)

At the planned densities allowed by the specific plan.

(c)

Land development is at the stage of being marketed to merchant builders or tentative tract maps ready to be filed.

This is a projected value based on the project plans predicated on the market conditions continuing as projected.

3. Bulk Land Value-(Premise #3): The total land within the project is valued under projected conditions.

(a)

With proposed infrastructure being financed completed.

(b)

With existing parcel configurations.

(c)

Considering planned densities allowed by the specific plan of the project.

This premise should consider a discounted or "quick sale" valuation considering time, cost and the possibility of a per unit value based on the total size of the project.

Attachment A-2

CITY OF INDIO AGENDA REPORT

March 3, 2004

TO:

Mayor and Council

THRU:

Tom Ramirez, City Manager

'PA)

FROM: Jerry Carter, Finance Director

SUBJECT:

Approval of Reimbursement Resolution

SUMMARY:

The City of Indio desires to finance certain improvements benefiting its

Municipal Golf Course by the sale of tax-exempt bonds, notes, or other obligations, in

one or more series, the principal amount of the financings not to exceed $6,500,000.

The City of Indio expects to incur certain expenditures relating to the golf course and to pay for such expenditures from the City's money on hand prior to the execution of the Obligations.

The City of Indio is declaring its official intent, subject to further approval of this Council, to use the proceeds of the Obligations to reimburse itself for the Reimbursement Expenditures.

Previous Council Action: None

Financial Implications: Reimbursement of expenditures made prior to the execution of the Bonds.

Recommendation: Staff recommends approval of the Reimbursement Resolution.

Proposed Motion: Move approval of the Resolution of the City of Indio declaring its intent to issue tax-exempt obligations for certain golf course improvements and to allow for the reimbursement of City expenditures made prior to the issuance of such obligations.

List of Attachments:

A. Resolution

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA, DECLARING ITS INTENT TO ISSUE TAX-EXEMPT OBLIGATIONS FOR CERTAIN MUNICIPAL GOLF COURSE IMPROVEMENTS AND TO ALLOW FOR THE REIMBURSEMENT OF CITY EXPENDITURES MADE PRIOR TO THE ISSUANCE OF SUCH OBLIGATIONS RECITALS:

WHEREAS, improvements; and

the City of Indio desires and intends to finance certain golf course

WHEREAS, the City expects to cause the execution, delivery, and sale of tax exempt bonds, notes, or other obligations, in one or more series, for the purpose of providing financing for the golf course improvements in a principal amount of not to exceed $6,500,000 (the "Obligations"); and

WHEREAS, the City expects to incur certain expenditures relating to the Project and to pay for such expenditures from the City's money on hand prior to the execution of the Obligations (the "Reimbursement Expenditures"); and

WHEREAS, the City reasonably expects to use a portion of the proceeds of the Obligations to reimburse the City for the Reimbursement Expenditures.

NOW THEREFORE, THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The City hereby declares its official intent, subject to further approval of this Council, to use the proceeds of the Obligations to reimburse itself for the Reimbursement Expenditures. It is intended that this Resolution shall constitute a declaration of "official intent" within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code of 1986.

Section 2. The adoption of this Resolution shall not bind the City to proceed with the execution and delivery of the Obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws.

Section 3. All actions heretofore taken by the officers, or their respective designees, and the employees and agents of the City in connection with the financing of the Project are hereby ratified and confirmed. The officers and their designees, the employees and agents of the City are hereby authorized to take any and all actions in connection with the financing of the Project and as may be necessary and consistent with the purposes of this Resolution.

Section 4. This Resolution shall take effect immediately upon its adoption.

1

PASSED, APPROVED AND ADOPTED this 3rd day of March, 2004, by the following

vote:

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

JACQUELINE BETHEL, MAYOR

2

CITY OF INDIO AGENDA REPORT

March 3, 2004

TO:

Mayor and Council

THRU:

Tom Ramirez, City Manager 1,no

FROM: Jerry Carter, Finance Director

SUBJECT:

Certificates of Participation (Golf Course Improvement Project) 2004 Series A

SUMMARY

,tv City staff was directed to develop a financing plan for funding a renovation and expansion of the Indio Municipal Golf Course. The expansion includes adding 20 acres to the existing 46 acre course, converting the course from a par 54 to a par 60 executive golf course. Additional features of the renovated course include a new modernized overhead lighting system to replace the old lighting system for night play, three new lake water features to enhance visual aesthetics and add additional water storage for golf course irrigation, a new landscape irrigation system and a new maintenance building. A new temporary clubhouse, using modular units, will be constructed housing a snack bar, starter area, office space, restroom facilities, and retail pro shop until a permanent clubhouse can be built. In addition, the driving range will be lengthened to accommodate a golf instruction school.

Staff expects to receive bids for course construction in April 2004. architectural estimates of the cost are $4,900,000.

Current

The City contracted with Economic Research Associates (ERA) to prepare a projection of net revenue that could be generated from operation of the new course. These projections demonstrate that the City can be reasonably assured that the cost of financing the renovation project will be covered by the net income of the Golf Course, based on an average green fee of $21.56.

CERTIFICATES OF PARTICIPATION (GOLF COURSE IMPROVEMENT PROJECT) 2004 SERIES A CITY COUNCIL — March 3, 2004 PAGE 2

PREVIOUS COUNCIL ACTION: None

ANALYSIS:

The ERA study was based on the following greens fees:

Daily Greens

 

Fee

Weight

 

(excluding cart)

 

Resident

18-Hole

Peak

$20.00

12%

Shoulder

20.00

9%

Off

15.00

2%

Twilight

Peak

$15.00

2%

Shoulder

15.00

1%

Off

15.00

1%

Nonresident

18-Hole

Peak

$30.00

28%

Shoulder

25.00

22%

Off

15.00

16%

Twilight

Peak

$20.00

3%

Shoulder

15.00

2%

Off

15.00

2%

Average/Total

$22.70

100%

Less: Complimentary/Discount

(

1.14)

(

5%)

Weighted Average/Total

$21.56

95%

P

This fee level is expected by ERA to generate net income of $400,000 in 2006 based on 44,000 rounds of play and $500,00Cliat stabilization of 47,000 rounds of play. The ERA projections of expenses take into account the course renovations and the additional expenses related to some of the improved course features.

The City's financing team recommends that the City issue Certificates of Participation, and in effect, guarantee that the General Fund be responsible for paying debt service in the event of a shortfall in net income of the course. This will allow the financing to achieve an investment grade rating and the average interest rate is expected to be approximately 5.3%, and annual debt service of $415,000. Staff did consider financing the Golf Course improvements solely based on net revenue of the course. However, the interest rate was expected to be as high as 6.3%, given the uncertain nature of a start-up golf course and debt service to increase by more than $40,000

CERTIFICATES OF PARTICIPATION (GOLF COURSE IMPROVEMENT PROJECT) 2004 SERIES A CITY COUNCIL - March 3, 2004 PAGE 3

annually. Using the General Fund structure makes the course more affordable, since the risk that the course does not produce enough income is borne by the General Fund. This is not an uncommon financing method, since it is not particularly likely that the City would allow a stand-alone golf course financing to go into default in any event and would pick up such shortfall. Therefore, Staff is recommending that the City issue Certificates of Participation to fund the estimated $4,900,000 in construction costs.

A resolution of the City and of the Indio Public Financing Authority is required to

approve the financing. The City resolution presented authorizes the Finance Director

to execute a purchase contract with O'Connor Southwest Securities for the sale of the

bonds, at a rate not to exceed 7%, with an underwriter's discount not to exceed 1.5%.

The resoluWi also approves the forms of the following documents required to issue the bonds: a Trust Agreement between the City, the Authority and Union Bank of California, N.A.; a Lease Agreement between the City and the Authority, a Site and Facilities Lease between the City and the Authority, the Continuing Disclosure Agreement; the Preliminary Official Statement relating to the Certificates of Participation and the Purchase Contract for the sale of the Bonds pursuant to a negotiated sale with O'Connor Southwest Securities which is scheduled to occur on or about April 7, 2004 in an amount not to exceed $6,500,000. The forms of the documents are on file with the City Clerk.

FINANCIAL IMPLICATIONS:

The City will be responsible for funding any shortfall between actual net revenues of the renovated golf course and the estimated debt service on the financing of $415,000 per year. An amount will be set aside from proceeds of the COPs to pay interest on the bonds for 18 months. This is expected to cover the time to complete the renovations and grow-in the course.

RECOMMENDATION:

Staff recommends Council adopt the Resolution authorizing the issuance of Certificates of Participation and authorizing the execution and delivery of certain documents in connection with the financing.

ACTION:

MOVE APPROVAL OF THE RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF CERTIFICATES OF PARTICIPATION AND AUTHORIZING THE PREPARATION, EXECUTION AND DELIVERY OF THE NECESSARY DOCUMENTS IN CONNECTION THEREWITH

CERTIFICATES OF PARTICIPATION (GOLF COURSE IMPROVEMENT PROJECT) 2004 SERIES A CITY COUNCIL — March 3, 2004 PAGE 4

List of Attachments:

A. Resolution authorizing issuance of City of Indio Certificates of Participation (Golf Course Improvement Project) 2004 Series A

B. ERA Study

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF INDIO, CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF CERTIFICATES OF PARTICIPATION AND AUTHORIZING THE PREPARATION, EXECUTION AND DELIVERY OF THE NECESSARY DOCUMENTS IN CONNECTION THEREWITH

WHEREAS, the City Council desires to initiate proceedings to provide for the execution and delivery of certificates of participation (the "Certificates") in the aggregate principal amount not to exceed $6,500,000 the proceeds of which will be used to make improvements to the City's golf course (the "Project").

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The City Council hereby authorizes the execution and delivery of the Certificates in the aggregate principal amount not to exceed $6,500,000. The Certificates shall bear true interest cost (including original issue shown) not greater than 7.0% and provides for an underwriter's discount not greater than 1.5% of the principal amount of Certificates.

Section 2. The City Council hereby approves the Trust Agreement, the Lease Agreement, the Site and Facilities Lease, the Continuing Disclosure Agreement and a Certificate Purchase Agreement, substantially in the forms annexed hereto, with such revisions, amendments and completions as shall be approved by a Responsible Officer, such approval to be conclusively evidenced by the execution and delivery thereof A Responsible Officer shall include any member of the City Council, the City Manager, the Finance Director, the City Clerk or any official of the City designated by the Mayor or the City Manager as a Responsible Officer.

The City Council has made findings that the Project provides open space within the City such that the Project fulfills a significant and essential public purpose for the City and its residents and in the event that the Project may not be functional as a municipal golf course, the City will continue to make lease payments for the use and occupancy of the Project as essential open space

Section 3.

The City Council hereby approves the Preliminary Official Statement

relating to the Certificates, substantially in the form annexed hereto, with such revisions, amendments and completions as shall be approved by a Responsible Officer with the advice of Special Counsel and Disclosure Counsel, in order to make the Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations ("Rule 15c2-12"), and any certificate relating to the finality of the Official Statement under Rule 15c2-12. A Responsible Officer is authorized and directed to execute and deliver a final Official Statement and amendments and updates thereto, as appropriate, in substantially the form hereby approved, with such additions and changes as may be approved by Special Counsel and Disclosure Counsel and the Responsible Officer executing the same, such approval to be conclusively evidenced by the execution and delivery thereof

Section 4. The City Manager, the Finance Director, the City Clerk and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all other actions, including the obtaining of municipal bond insurance and the publication of any notices necessary or desirable in connection with the sale of the Certificates and execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instalments of conveyance, warrants and other documents, which they, or any of them, deemed necessary or advisable in order to consummate the lawful execution, sale and delivery of the certificates and the consummation of the transactions as described herein.

Section 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. Notwithstanding the foregoing, such certification and any of the other duties and responsibilities assigned to the City Clerk pursuant to this Resolution may be performed by a Deputy City Clerk with the same force and effect as if performed by the City Clerk hereunder.

PASSED, APPROVED AND ADOPTED this

vote:

AYES:

NOES:

th day of 2004, by the following

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

JACQUELINE BETHEL, MAYOR

45401753.2

-2-

ANALYSIS OF FINANCIAL PERFORMANCE

Projections of golf play, greens fee structure, and other course revenue and expense

characteristics are based on prevailing and anticipated market conditions presented earlier,

and the following considerations:

• The proposed course would be comparable in terms of design and maintenance

quality to facilities such as Oasis and Suncrest in Palm Desert and Cimarron in

Cathedral City.

• The course would be operated by a qualified professional golf course

management company.

The golf course would be night lighted.

• The course is assumed to be open to the public with discounted rates during the

shoulder and off seasons. In addition, City of Indio resident discounts also have been assumed.

• Golf carts would be optional.

• A double-ended golf practice range would offer 30 tee stations for same-day

golfers and commercial use, and would be night lighted. A golf academy is being

proposed for one end of the range, but has not been evaluated in this analysis.

• A modular clubhouse of approximately 2,500 square feet, plus cart storage to

accommodate a fleet of 40 carts, would be constructed. The clubhouse would include a small pro shop, administration office and storage areas, and a snack bar/grill. The following space allocation would be representative of the modular clubhouse.

Size

(square feet)

Pro Shop

600

Office and Storage Area

400

Snack Bar/Grill/Kitchen

1,000

Restrooms/Common Area/Circulation

500

Total

2,500

Economics Research Associates ERA No. 15422

City of Indio Page 1

A permanent clubhouse is proposed as part of a second development phase (3-5

years after course construction is completed), but has not been included in this

analysis.

The course is owned by a qualified public entity which is exempt from real estate

property tax.

A modest recovery of the Coachella Valley golf market occurs over the next

Utilization

several years.

Annual golf play for the subject course, reflecting the greens fees and other course

characteristics indicated below, is projected as follows:

Number of Rounds City Nonresident Total Year Resident Public Play

1

12,000

28,000

40,000

2

13,000

31,000

44,000

3+

14,000

33,000

47,000

Based on the market conditions described above, and with particular consideration to the

design characteristics of the proposed course, the distribution of play at stabilization is estimated

as follows:

 

Number

Average

of

Rounds/

Season

Rounds

Weight

Day

Peak (January 1-April 30)

21,150

45%

175

Shoulder (May 1-May 31; October 1-December 31)

16,450

35%

137

Off (June 1-September 30)

9,400

20%

78

Total

47,000

100%

130

Economics Research Associates

City of Indio

Greens Fees

The following greens fees structure, expressed in constant 2004 dollars, for the proposed

course are consistent with current and projected market support, the course design, and annual

play projections:

Daily Greens Fee (excluding cart)

Resident

18-Hole

Peak

$20.00

Shoulder

20.00

Off

15.00

Twilight

Peak

$15.00

Shoulder

15.00

Off

15.00

Nonresident

18-Hole

Peak

$30.00

Shoulder

25.00

Off

15.00

Twilight

Peak

$20.00

Shoulder

15.00

Off

15.00

Average/Total

$22.70

Less: Complimentary/Discount

(

1.14)

Weighted Average/Total

Other Revenue

$21.56

Weight

12%

9%

2%

2%

1%

1%

28%

22%

16%

3%

2%

2%

100%

(5L)

95%

Other sources of revenue include electric cart rental, practice range, pro shop sales, food

and beverage operations, and miscellaneous income. Estimates for these are as follows:

Carts

Fee (per person)

18-hole

$10.00

9 hole

$ 6.00

Economics Research Associates

ERA No. 15422

City of Indio Page 3

Utilization

Average Revenue/Round

Practice Range (30 tees night lighting)

Gross Revenue

Pro Shop

Gross Revenue

Food and Beverage

Gross Revenue

Miscellaneous Income

(pull carts, club rentals, equipment repair, other)

Golf Course Operating Expenses

40%

$ 3.84

$150,000 per year

$ 2.25 per round

$ 4.00 per round

$ 25,000 per year

The costs of operating the renovated executive course including course maintenance,

water, utilities, replacement reserve, golf operations, and general and administrative expenses

are based on discussions with City staff, selected golf course management firms, the experience

of local course operators, and our general experience with golf courses located in similar desert

climates.

Cost of Sales (percent of gross revenue)

Merchandise

65%

Food and Beverage

32%

Course Maintenance

Salaries and Benefits

$225,000

Water and Utilities

70,000

Service and Supplies

125,000

Maintenance Equipment

50,000

Total

$470,000

Economics Research Associates ERA No. 15422

City of Indio

Page 4

Golf Operations

Pro Shop Staff

$100,000

Cart Leasing

30,000

Cart

Maintenance/Staff

15,000

Practice Range

25,000

Services and Supplies

20,000

 

Total

$190,000

Food and Beverage Operating Expenses

45% of Gross

$ 85,000

Clubhouse Undistributed Expenses

Maintenance, utilities, repairs, and other expenses related to the operation of the

modular clubhouse (2,500 sq.ft. @ $10/sq.ft.)

General and Administrative

$ 25,000

Salaries and Benefits

$ 75,000

Insurance

20,000

Property Taxes Services and Supplies

50,000

Advertising and Promotion

15,000

Management Fee

84,000

Total

$244,000

Course Capital Reserve

Assumes publicly-owned facility with contract management.

Economics Research Associates ERA No. 15422

$ 50,000

City of hidio Page 5

Table PRO FORMA NET OPERATING INCOME STATEMENT Indio Executive Golf Course (In Current S000s)

 

Year

 
 

1

2

3

4

5

Total

ANNUAL ROUNDS REVENUE

40,000

44,000

47,000

47,000

47,000

Greens Fees @ $21.56

$862

$977

$1,075

$1,107

$1,141

$5,162

Cart Fees

154

174

191

197

203

919

Practice Range

150

155

159

164

169

796

Pro Shop Merchandise

90

102

112

116

119

539

Food & Beverage

160

181

199

205

212

958

Other

25

26

27

27

28

133

Gross Revenue

$1,441

$1,615

$1,764

$1,817

$1,871

$8,507

Less: Cost of Sales Pro Shop Merchandise

$59

$66

$73

$75

$77

$350

Food & Beverage

51

58

 

64

66

 

68

306

Subtotal Cost of Sales

$110

$124

$137

$141

$145

$657

TOTAL REVENUE OPERATING EXPENSES Course Maintenance

$1,331

$1,490

$1,627

$1,676

$1,726

$7,851

Salaries & Benefits

$225

$232

$239

$246

$253

$1,195

Water & Utilities

70

72

74

76

79

372

Services & Supplies

125

129

133

137

141

664

Maintenance Equipment

50

52

53

55

56

265

Subtotal Course Maintenance Golf Operations

$470

$484

$499

$514

$529

$2,495

Pro Shop Staff

$100

$103

$106

$109

$113

$531

Cart Lease

30

31

32

33

34

159

Cart Maintenance/Staff

15

15

16

16

17

80

Practice Range

25

26

27

27

28

133

Miscellaneous

20

21

21

22

23

106

Subtotal Golf Operations

$190

$196

$202

$208

$214

$1,009

F&B Operating Expenses

$72

$82

$90

$92

$95

$431

Clubhouse Undistributed General & Administrative

$25

$26

$27

$27

$28

$133

Salaries & Benefits

$75

$77

$80

$82

$84

$398

Insurance

20

21

21

22

23

106

Property Taxes

-

-

-

-

-

-

Other Services/Supplies

50

52

53

55

56

265

Advertising & Promotion

15

15

16

16

17

80

Management Fee

84

87

89

92

95

446

Subtotal G&A

$244

$251

$259

$267

$275

$1,295

Course Capital Reserve

50

52

53

55

56

265

TOTAL EXPENSES

$1,051

$1,090

$1,128

$1,162

$1,197

$5,629

NET OPERATING INCOME

$280

$400

$499

$514

$529

$2,222

Note: Reflects 3.0% average annual inflation rate, beginning in year 2. Source: Economics Research Associates.

CITY OF INDIO AGENDA REPORT

March 3, 2004

TO:

Mayor and Council

THRU:

Tom Ramirez, City Manager

FROM: Jerry Carter, Finance Director

SUBJECT:

Confirmation of Unpaid Assessments for Assessment District No. 2003-5 (Sunburst)

SUMMARY

Assessment District No. 2003-5 (Sunburst) encompasses Tract No. 30412 and 30412- 1, a 135 lot single-family subdivision to be located generally west of Madison Street and North of Fred Waring Drive known as "Sunburst." All property within the Assessment District is owned and being developed by Lennar Homes of California, Inc., a California Corporation. The Assessment District was formed to provide a method of financing certain public improvements associated with the development within the Assessment District. The Assessment District will issue Limited Obligation Improvement Bonds secured by assessments to be levied on property within its boundaries.

The Assessment Engineer prepared a report of the amount to be assessed to each parcel of property within the Assessment District, and the property owner was given a thirty-day period to prepay any such assessment if desired. No assessments were prepaid and the unpaid assessments can now be confirmed.

PREVIOUS COUNCIL ACTION:

At the City Council meeting on January 21, 2004 the City Council completed proceedings to form the Assessment District and approved the issuance of the Limited Obligation Improvement Bonds.

ANALYSIS:

An Assessment Diagram and Notice of Assessment was recorded on January 23, 2004 in the office of the County Recorder under document number 2004-0050042. The amount of the unpaid assessments for Assessment District No. 2003-5 (Sunburst) is $1,890,000 and will represent the principal amount of limited obligation improvement bonds to be issued upon the security of the unpaid assessments in Assessment District No. 2003-5 (Sunburst). The assessment per lot is $14,000.

CONFIRMATION OF UNPAID ASSESSMENTS CITY COUNCIL - March 3, 2004 PAGE 2

FINANCIAL IMPLICATIONS:

The City does not incur any financial obligations with this action. The City's cost to administer the Assessment District annually will be reimbursed through annual assessments charged to property owners.

RECOMMENDATION:

Staff recommends Council adopt the Resolution determining the unpaid assessments in Assessment District No. 2003-5 (Sunburst).

ACTION:

MOVE APPROVAL OF THE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO DETERMINING UNPAID ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 2003-5 (SUNBURST)

List of Attachments:

A. Resolution Determining Unpaid Assessments

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO DETERMINING UNPAID ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 2003-5 (SUNBURST)

WHEREAS, the City Council (the "City Council") of the City of Indio, California (the "City") has previously undertaken proceedings under the Municipal Improvement Act of 1913 (the "Act"), being Division 12 of the Streets and Highways Code of the State of California, and has confirmed assessments for the Assessment District No. 2003-5 (Sunburst) (the "Assessment District"), and an Assessment Diagram and Notice of Assessment has been recorded on January 23, 2004 in the office of the County Recorder of the County of Riverside; and

WHEREAS, such proceedings provide that bonds representing the unpaid assessments will be issued pursuant to the Improvement Bond Act of 1915 (the A1915 Act"), being Division 10 of the Streets and Highways Code; and

WHEREAS, the Assessment Engineer has filed with the City Clerk a list of unpaid assessments for the Assessment District, a copy of which list is attached hereto as Exhibit "A" and by this reference incorporated herein, certifying the amount of the assessments remaining unpaid as shown on Exhibit "A"; and

WHEREAS, this City Council wishes to establish said amount as the amount of the unpaid assessments and to ratify the amount of $1,890,000 as the principal amount of limited obligation improvement bonds to be authorized and issued in these proceedings upon the security of said unpaid assessments;

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Indio as follows:

Section

1.

The above recitals are all true and correct.

Section

2.

The City hereby finds and determines, as set forth in Exhibit "A,"

that the amount of assessments remaining unpaid in the Assessment District is $1,890,000, and, that by separate resolution, the City has authorized the issuance of limited obligation improvement bonds in a principal amount of said unpaid assessments.

Section 3.

The unpaid assessments shall be payable in the manner provided in

Section 8680 et seq. of the 1915 .Act, and shall be payable in the same manner and at the same time and in the same installments as the general taxes of the City on real property are payable. Pursuant to Section 8682 of the 1915 Act, a certified copy of this resolution and a copy of the list of unpaid assessments shall be filed by the City Clerk in the Office of the Auditor-Controller of the County of Riverside. Said County Auditor-Controller is requested to proceed in accordance with Section 8682 of the 1915 Act in the collection of

45371330.1

1

installments of these assessments and the interest thereon on the secured property tax assessment roll of the County of Riverside.

The actions of the City Clerk, the City staff and consultants

relating to the preparation of the list of unpaid assessments and filing the same with the

County Auditor-Controller is hereby confirmed and ratified.

Section 4.

Section 5.

This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED this by the following vote:

day of

, 2004

AYES:

NOES:

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

JACQUELINE BETHEL, MAYOR

45371330.1

2

EXHIBIT A

LIST OF UNPAID ASSESSMENTS

45371330.1

Dater 02/12/04 08:16 am

ASSESSMENT NO. ASSESSOR'S PARCEL NO.

001-001

606140001-2

001-002

606140006-7

001-003

606150001-3

001-004

606180001-6

INDIO

AD

2

0

0

3

-

5

(SUNBURST

 

Page:

1

 

PAID/UNPAID LIST

 

ASSESSMENT

BOND ISSUANCE

CASH PAYOFF

AMOUNT

BOND ISSUANCE

TOTAL AMOUNT

UNPAID

AS CONFIRMED

CREDIT

AMOUNT

PAID

CREDIT APPLIED

CREDITED

BALANCE

140,000.00

0.00

140,000.00

0.00

0.00

0.00

140,000.00

490,000.00

0.00

490,000.00

0.00

0.00

0.00

490,000.00

1,022,000.00

0.00

1,022,000.00

0.00

0.00

0.00

1,022,000.00

238,000.00

0.00

238,000.00

0.00

0.00

0.00

238,000.00

1,890,000.00

0.00

1,890,000.00

0.00

0.00

0.00

1,890,000.00

CITY OF INDIO AGENDA REPORT

Meeting of March 3, 2004

TO:

Mayor and City Council

THRU:

Tom Ramirez, City Manager

FROM:

John Corella, Director of Public Works/City Engineer

' / 244

Amir H, Mparrissi Deputy Director of Public Works/City Engineer

DATE:

February 23, 2004

SUBJECT:

Consideration of approving cooperative agreement between Desert Sands Unified School District, City of La Quinta and the City of Indio for the design and construction of pedestrian safety traffic control signals at Amelia Earhart Elementary and John Glenn Middle Schools.

Summary

This agreement is for design and construction of pedestrian safety traffic signals and safety lights at the Amelia Earhart Elementary and John Glenn Middle Schools. The signalizing will provide additional safety to pedestrians crossings at two locations. One at Dune Palms Drive and Desert Crest Road and the other at Miles Avenue and the entrance of John Glenn Middle School. The staff recommendation is that the City Council approve the agreement attached to this report.

Background

The Desert Sands Unified School District requested a review and assessment on a need to provide manageable student crossing on Miles Avenue at the John Glenn Middle School and a crossing on Dune Palms Road at Desert Crest Drive intersection for the Amelia Earhart Elementary School. Both cities of Indio and La Quinta identified corrective measures to address the need.

The City of La Quinta, on behalf of the Desert Sand Unified School District (DSUSD), the City of Indio and itself applied for a State of California "Safe Route to School" grant in 2003. The state has approved the grant in the amount of $244,800 through its "Safe Routes to School Program" on November 21, 2003. This grant will

pay for approximately 85% of the estimated cost of the proposed improvements. The remaining balance of $37,851 will be shared equally among the two cities and DSUSD.

The enclosed cooperative agreement between the DSUSD, the City of La Quinta, and the City of Indio is for the design, construction and financing, of the proposed pedestrian safety traffic signals and safety lights at the intersection of Dune Palms Road and Desert Crest Drive and Miles Avenue at the entrance of John Glenn Middle School. The agreement provides that the cities of La Quinta and Indio will enter into a subsequent agreement to share equally the annual operating and maintenance costs.

The cooperative agreement includes each party's responsibilities and obligations. The City of Indio is responsible to pay for one-third of the projects' remaining share and then pay for fifty-percent (50%) of the maintenance and operation cost in cooperation with the City of La Quinta.

Financial Considerations

The City of Indio's one-third of the project's local share is estimated at $12,617. This cost is proposed to be funded from the City's Traffic Signal Funds (CIF-Traffic Signal). The maintenance and operation cost will be programmed into the next Public Services departmental operational bilge

Reviewed and concurred:

Staff Recommendation

Jerry Carter, Fiance Director

Staff is requesting that the City Council approve the cooperative agreement enclosed to this report and authorize the City Manager and Mayor to execute the agreement.

Staff is also requesting that the City Council authorize the City Manager to execute all subsequent agreements and/or contracts to complete the project.

COOPERATIVE AGREEMENT FOR THE DESIGN AND CONSTRUCTION OF TRAFFIC CONTROL SIGNALS

This agreement (hereinafter "Agreement") entered into this day of

between the Desert Sands Unified School District, a school district organized and existing under the laws of the State of California, referred to herein as "DSUSD," the City of La Quinta, a Municipal Corporation and charter city, referred to herein as "LA QUINTA," and the City of Indio, a Municipal Corporation, referred to herein as "INDIO." DSUSD, LA QUINTA and INDIO are collectively referred to in this Agreement as "PARTIES."

, 2004, is

RECITALS

(I) DSUSD, LA QUINTA arid INDIO desire to install two (2) traffic control signals and safety lighting, referred to herein as "PROJECT," at the intersection of Dune Palms Road and Desert Crest Drive (adjacent to the Amelia Earhart Elementary School) and on Miles Avenue at the John Glen Middle School, and desire to specify the terms and conditions under which the PROJECT is to be engineered, constructed, financed, operated and maintained.

(2)

(3)

The PROJECT locations are jointly owned fifty percent (50%) by LA QUINTA and fifty percent (50%) by INDIO.

It has been determined that the State of California promulgated traffic signal warrants have been met for the PROJECT locations.

(4)

(5)

The California Department of Transportation (Caltrans) approved a grant in the amount of $244,800.00 through its Safe Routes to School (SR2S) Program on November 21, 2003. The grant represents approximately 85% of the estimated cost to complete the PROJECT.

DSUSD, LA QUINTA and INDIO desire to equally share the remaining unfunded project costs in the amount of $37,850.00. The unfunded project costs represent approximately 15% of the estimated costs to complete the PROJECT, referred to herein as PROJECT SHARE.

Section I

DSUSD AGREES:

(1) To pay an amount equal to one third (1/3) of the PROJECT SHARE for construction, design, engineering, inspection/testing/survey, contingency and administrative costs as described on Exhibit "A" attached hereto and incorporated herein by this reference). ( 2) To deposit with LA QUINTA within thirty (30) days of receipt of billing therefor the amount of $12,617, which figure represents DSUSD's estimated PROJECT SHARE of the cost of preliminary engineering, construction, construction engineering and administration, as required to complete the PROJECT. In no event will DSUSD's obligation for all anticipated costs under this Agreement exceed 115% of DSUSD's estimated costs, as listed in Exhibit "A," provided that DSUSD may, at its sole discretion, in writing, authorize a greater amount. However, this does not obligate LA QUINTA in any way to provide additional funds for PROJECT.

LA QUINTA AGREES:

Section II

(1) To pay an amount equal to one third (1/3) of the PROJECT SHARE for construction, design, engineering, inspection/testing/survey, contingency and administrative costs as described on attached Exhibit "A." 2) To prepare Plans, Specifications and Estimates (PS&E) for the PROJECT. PS&E are to be prepared in accordance with the Standard Plans and Specifications of the State of California

L:\John\Correspondence1DSUSEASR2S Coop Agreement.doc

(3)

(4)

(5)

(6)

(7)

(8)

Department of Transportation, the standards and practices of LA QUINTA and all applicable laws and regulations. To have final design documents and drawings for the PROJECT prepared by or under the direction of a civil engineer registered and licensed in the State of California, and that the specifications, each set of plans and any reports shall bear the professional seal, certificate and signature of the professional engineer responsible for their preparation. To apply for any necessary encroachment permits for work within the INDIO street right-of-way, in accordance with INDIO standard permit procedures. To advertise, award and administer a public works contract for the construction of the PROJECT improvements. To retain or cause to be retained for audit by DSUSD, INDIO or other governmental auditors for a period of three (3) years from the date of final payment, all records and accounts relating to construction of the PROJECT. Upon completion of the PROJECT, to furnish INDIO a complete set of full-sized reproducible "Drawing of Record" plans. To enter into a maintenance agreement with INDIO, whereby LA QUINTA will agree to maintain and operate the facilities and LA QUINTA will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and energy costs for the PROJECT.

will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and
will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and
will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and
will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and
will pay fifty percent (50%) and INDIO will pay fifty percent (50%) of the maintenance and

INDIO AGREES:

Section III

(1)

To pay an amount equal to one third (1/3) of PROJECT SHARE for construction, design,

(2)

engineering, inspection/testing/survey, contingency and administrative costsas described on attached Exhibit "A." To deposit with LA QUINTA within thirty (30) days of receipt of billing therefor the amount of

(3)

$12,617, which figure represents INDIO's estimated PROJECT SHARE of the cost of preliminary engineering, construction, construction engineering and administration, as required to complete the PROJECT. In no event will INDIO' s obligation for all anticipated costs under this Agreement exceed 115% of INDIO's estimated costs, as listed in Exhibit "A," provided that INDIO may, at its sole discretion, in writing, authorize a greater amount. However, this does not obligate LA QUINTA in any way to provide additional funds for the PROJECT. To issue, free of charge, upon application by LA QUINTA or LA QUINTA's contractor, the

(4)

necessary Encroachment Permits for required work within the INDIO streets right-of-way. To enter into a maintenance agreement with LA QUINTA, whereby LA QUINTA will agree to maintain and operate the facilities and LA QUINTA will pay fifty percent (50 %) and INDIO will pay fifty percent (50%) of the maintenance and energy costs for the PROJECT.

Section IV

IT IS MUTUALLY AGREED AS FOLLOWS:

(1)

The total cost of PROJECT is estimated to be $282,650.

(2)

The SR2S Grant in the amount of $244,800 shall be shared equally by DSUSD, LA QUINTA and

(3)

INDIO. If, for any reason, the SR2S Grant is not received by LA QUINTA, DSUSD and INDIO agree to

(4)

pay an amount equal to one third (1/3) of the total estimated project cost of $282,650. Upon opening bids for construction of the PROJECT, if bids indicate a cost overrun of no more

than 15% of the construction costs estimate as described in Exhibit "A," LA QUINTA may award

the contract.

(5)

If, upon opening of bids, it is found that a cost overrun exceeding 15% of the construction cost estimate will occur, INDIO, LA QUINTA and DSUSD shall endeavor to agree upon an alternative course of action. If, after thirty calendar days from the date of bid opening, an alternative course of action is not agreed upon, this Agreement shall be deemed to be terminated by mutual consent, with each agency sharing incurred costs in accordance with the cost shares as set forth in Section I, Article 1), Section II, Article (1), Section III, Article (1), and Section IV, Article (1).

1,:Voltrieorrespondence\DSUSD\ SR2S Coop Agreement.doc

(6)

(7)

(8)

(9)

All contract change orders exceeding 15% of the bid price for the relevant contract bid items shall be submitted by LA QUINTA to INDIO and DSUSD for review and approval prior to authorization by LA QUINTA to construction contractor. In construction of said work, LA QU1NTA will furnish a representative to perform the function of Resident Engineer, and INDIO may furnish a representative. INDIO's representative may consult with LA QUINTA's representative, but LA QUINTA's decision shall be considered final. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by all parties, and no oral understanding or agreement not incorporated herein shall be binding on either party hereto. Upon completion of all work under this Agreement, ownership and title to all materials, equipment, and appurtenances installed will be jointly shared in the ratio of fifty percent (50%) LA QUINTA, fifty percent (50%) INDIO.

(10) Neither INDIO nor DSUSD nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by LA QUINTA under or in connection with any work, authority or jurisdiction delegated to LA QUINTA under this Agreement. It is further agreed that, pursuant to Government Code Section 895.4, LA QUINTA shall fully indemnify and hold DSUSD and INDIO harmless from any liability imposed for injury {as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done by LA QUINTA under or in connection with any work, authority or jurisdiction delegated to LA QUINTA under this Agreement. (11) Neither LA QUINTA nor any other officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by INDIO or DSUSD under or in connection with any work, authority or jurisdiction delegated to INDIO or DSUSD under this Agreement. It is also agreed that, pursuant to Government Code Section 895.4, INDIO and DSUSD shall fully indemnify and hold LA QUINTA harmless from any liability imposed for injury (as defined by Government Code Section 810.98) occurring by reason of anything done or omitted to be done by INDIO or DSUSD under or in connection with any work, authority or jurisdiction delegated to INDIO or DSUSD under this Agreement.

NOTICES:

Any notice required to be sent pursuant to this Agreement shall be sent by regular mail, addressed as follows:

CITY OF INDIO

City of Indio Tom Ramirez,_City Manager 100 Civic Center Mall Indio, CA 92202

CITY OF LA QUINTA

City of La Quinta Tom Genovese, City Manager 78-105 Calle Estado La Quinta, CA 92253

Dated:

Dated:

By:

By:

Jacquie Bethel, Mayor

ATTEST:

By:

Cynthia Hernandez, Deputy City Clerk

APPROVED AS TO FORM:

By:

Edward Kotkin, City Attorney

LAtohn\Correspondence\DSLISIASK2S Coop Agreement.doc

Don Adolph, Mayor

ATTEST:

By:

June Greek, City Clerk

APPROVED AS TO FORM:

By:

M. Katherine Jenson, City Attorney

DESERT SANDS UNIFIED SCHOOL DISTRICT

Desert Sands Unified School District Peggy Reyes, Director of Facility Services 47-950 Dune Palms Road La Quinta, CA 92234

Dated:

By:

Charlene Whitlinger, Assistant Superintendent of Business Services

ATTEST:

By:

APPROVED AS TO FORM:

By:

LAJohn\CorrespondenceDSUSMSR2S Coop Agreement.doc

CITY OF INDIO AGENDA REPORT

March 3, 2004

CITY OF

INDIO

TO:

Mayor and Council

TRW):

Torn Ramirez, City Manager

FROM:

Sandy Krause, Human Resources Manager

DATE:

February 23, 2004

SUBJECT:

(1) Consideration of Financial Impacts of Commencement Date of new Memorandum of Understanding (MOU) with Police Command Unit (PCU); (2) Resolution Clarifying Employer Paid Member Contribution (EPMC) Benefit and Establishing MOU Commencement Date; (3) Potential for Impasse and Imposition of Last, Best and Final Offer

Summary:

At the City Council meeting on February 18, 2004, Council directed staff to provide a report comparing addressing issues regarding compensation and benefits that Police Command Unit (PCU) employees would receive under a new Memorandum of Understanding (MOU) with a four (4) year term. The Council asked staff to provide data distinguishing the financial impacts associated with two (2) separate scenarios for the MOU commencement date, i.e., July 2003 vs. December 2003. In addition, Council requested information regarding the fiscal impact of the "3% at 50" retirement benefit that PCU employees will enjoy starting June 30, 2005.

Previous Council Action:

Resolution 6785 was adopted by Council on December 30, 2003 approving financial benefits for the PCU over a four (4) year contract. On February 18, 2004, Council postponed its consideration of a resolution that would correct a nomenclature error in Resolution 6785, i.e., resolution language describing a new benefit to be provided to retiring PCU members in the last year of their employment was inaccurate, this benefit to be provided pursuant to the new MOU may be described as the Employer Paid Member Contribution. The staff report and resolution prepared for the February 18, 2004 City Council Meeting are attached hereto as "Exhibit A."

Background:

The last comprehensive MOU between the City and the PCU expired on June 30, 2003. Despite the City's efforts to persuade PCU to extend its MOU in light of then uncertain impacts of the state budget crisis upon the City, PCU refused to do so. Despite that refusal, City and PCU negotiating teams have met in good faith through nearly a full year to work out a successor MOU. During winter 2003, the City believed that it had reached agreement as to all economic

ITEM NO.8

aspects of a new MOU with PCU, including no retroactivity. Resolution 6785 described above reflected these terms, including a new benefit to be conferred to PCU through the first year of the MOU, i.e., an increase of fifty dollars ($50.00) in the City's contribution to each PCU member's health plan. The City did not disburse that benefit until the first pay period after the passage of Resolution 6785. This occurred on January 14, 2004.

During winter 2004, the City and PCU reached agreement as to all controversial non-economic aspects of a new MOU. However, at a meeting on February 5, 2004 to conclude consideration of

non-financial MOU issues, PCU informed the City of its complete disagreement with the City as

to the MOU's commencement date. PCU viewed the December 30, 2003 commencement date,

coinciding with Resolution 6785 and reflected in the draft of the new MOU that PCU received after the adoption of Resolution 6785, as unacceptable. At that time, PCU demanded that the City back-date the MOU to July 1, 2003.

The PCU received the "3% at 50" retirement benefit commencing June 30, 2005 through past negotiations. Its members will receive that benefit regardless of the terms of PCU's new MOU.

Financial Implications:

A summary reflecting the difference between the financial impact of an MOU with a

commencement date of July 1, 2003 vs. that of an MOU with a commencement date of December 30, 2003 is attached hereto as "Exhibit B." The summary contrasts the two different values of compensation and benefits that each PCU member will receive during a fixed time- frame, i.e., July 1, 2006 — June 30, 2007, depending upon the MOU's commencement date. The extraordinarily high increase in benefits to PCU members regardless of the MOU commencement date reflects:

1. The implementation of "3`)/0 at 50," e.g., projected City contribution per employee for FY 2005-2006 equals 16.162% of that employee's compensation;

2. The new EPMC benefit, e.g., projected City contribution per employee for FY 2005-2006 equals 14.3% of that employee's compensation, and;

3. Most significantly, the absence of state super-funding.

In understanding the difference reflected in "Exhibit B", please consider the following points:

I. With an MOU commencement date of July 1, 2003, each PCU member will realize

economic benefits conferred by the MOU six (6) months earlier than he would have done so pursuant to an MOU commencing December 30, 2003.

2. With a July 1, 2003 MOU commencement date, each PCU member who has risen to the highest possible salary step in his particular pay range would have the opportunity to earn

compensation at a new higher salary step created pursuant to the new MOU six (6) months sooner than would be possible under an MOU commencing December 30, 2003.

3. With a July 1, 2003 MOU commencement date, the implementation of the EPMC will arrive six (6) months earlier than it would with a December 30, 2003 MOU commencement date.

Options:

1. Agree to a July 1, 2003 MOU commencement date for PCU and adopt the resolution clarifying the EPMC benefit and memorializing said agreement attached hereto as -Exhibit C."

2. Provide direction to staff with respect to continued negotiations regarding MOU commencement date with PCU.

3. Determine that the MOU commencement date must be December 30, 2003 and instruct staff to:

a. present this determination to PCU, and

b. take all steps viewed as necessary and appropriate to effectuate this determination

Attachments:

Exhibit A Staff Report and Resolution Prepared for February 18, 2004 City Council Meeting

Exhibit B

Exhibit C

Summary of Difference in Financial Impact of Commencement Date of PCU MOU (July 1, 2003 vs. December 30, 2003)

Draft Resolution Clarifying EPMC Benefit and Establishing MOU Commencement Date

3

CITY OF INDIO AGENDA REPORT

February 18, 2004

CITY OF

INDIO

TO:

Mayor and Council

THRU:

Tom Ramirez, City Manager

FROM:

Sandy Krause, Human Resources Manager 3

DATE:

February 9, 2004

SUBJECT:

ApprovalApproval of Resolution clarifying economic benefits to the Police Command Unit (PCU) in their new four (4) year Memorandum of Understanding

Summary:

On December 18, 2003, Council approved Resolution 6785 adopting financial terms of a new four (4) year Memorandum of Understanding between the Police Command Unit (PCU) and the City of Indio. Despite agreement between the City of Indio and the Police Command Unit (PCU) regarding a new benefit to be provided to retiring Police Command Unit (PCU) members in the last year of their employment (Employer Paid Member Contribution "EPMC"), the language contained in the resolution describing same was inaccurate.

In order to correctly specify the program that the parties intended to make available to PCU member employees, staff requests the adoption of a new resolution that will supersede the Resolution 6785. The new resolution, attached hereto as Attachment A, like Resolution 6785, relates only to the economic benefits of the new soon to be executed Memorandum of Understanding between the City and PCU. This new resolution is identical to Resolution 6785 with the exception of item two (2) that correctly specifies the EPMC benefit.

Financial Implications:

There are no financial implications that have not been previously analyzed or considered by the Council.

Recommendation:

Staff recommends that the City Council pass, approve, and adopt the resolution attached hereto as Attachment A.

Attachment:

Resolution

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, ADOPTING A FOUR-YEAR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF INDIO AND THE POLICE COMMAND UNIT (PCU)

WHEREAS, for the past several months, the authorized representatives of the City of Indio, California (the "City") and the authorized representatives of the Police Command Unit ("PCU") have met, conferred and negotiated in good faith in order to agree upon terms of a new Memorandum of Understanding ("MOU") by and between the City and its employees represented by the PCU bargaining unit; and

WHEREAS, the PCU/City negotiations have yielded an agreement as to certain benefit terms for said new MOU; and

WHEREAS,

the City's negotiators have advised the Council that no

controversies exist between PCU and the City as to non-financial terms for a new MOU; and

WHEREAS, the Personnel Rules and Regulations provide that the classification plan and the rules and procedures thereof may be amended or revised as the occasion requires; and

WHEREAS, Resolution 6785, adopted by Council on December 18, 2003 accurately specified all new benefits to be conferred to PCU in the new MOU with the exception of the new benefit correctly specified in item two (2) below; and

WHEREAS, both PCU and the City wish to accurately memorialize their shared intent regarding the new MOU in a resolution that will supercede Resolution 6785;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. PCU agrees to a four (4) year contract.

2. The City of Indio will contract with CaIPERS to provide the Employer Paid Member

Contribution ("EPMC") Converted to Payrate During the Final Compensation Period

benefit, in conformance with all applicable legal authority, to PCU members effective at the commencement of contract year two (2).

3. PCU members will receive a one-time $50.00 per month health plan increase. This increases the monthly allowance from $600.00 to $650.00. The increase is effective, and will be payable, during the first pay period after the City Council's adoption of the benefit terms of the MOU.

4. PCU members will receive a 1.5% cost of living increase at the commencement of contract year three (3), and a 3% cost of living increase at the commencement of contract year four (4).

5. At the commencement of contract year three (3), one (1) new salary step representing a 5% pay increase, Step 8, will be added to the City's pay plan for all PCU occupational classes, and at the commencement of contract year four (4) a second new salary step representing a 5% pay increase, Step 9, will be added to the City's pay plan for all PCU occupational classes.

6. The City and PCU agree to a reopener during contract year two (2) to discuss health premiums. This reopener does not contractually or otherwise obligate the City in any fashion.

7. No retroactive pay or benefits will be given.

8. After the City Council's approval as to these benefit terms, both parties will continue to meet and confer to clarify various points in the past MOU between the parties in order to establish mutually acceptable terms and conditions for the new MOU.

9. The City Manager and/or his designee(s) is/are directed to conclude negotiations with PCU as to all non-financial issues, memorialize same together with the benefit terms herein approved, and present a MOU reflecting the final understanding between the City and PCU to the Mayor for execution. The Mayor's execution of this MOU shall bind the City with respect to all of its terms and conditions.

10.This resolution shall supercede Resolution 6785.

PASSED, APPROVED and ADOPTED this 18th day of February, 2004 by the following vote:

AYES:

NOES:

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

JACQUELINE BETHEL, MAYOR

CERTIFICATION I, Cynthia Hernandez, Deputy City Clerk of the City of Indio, do hereby certify the foregoing to be a full, true and correct copy of Resolution No. of the City Council of the City of Indio, adopted by said Council at a regular meeting on the 18 th day of February, 2004.

Cynthia Hernandez Deputy City Clerk, CMC

SALARY -DECEMBER DATES

SALARY -JULY DATES

EXHIBIT B

 

Compensation Compensation %

Compensation Compensation %

Total

EMP. 12/30103-12/30/04 12/30/06-12/30/07 Increase

7/1103-6/30/04 711106-6/30107 Increase

Difference

A $91,609.00

 

$98,669.00

7.71%

$91,609.00 $105,022.00 14.64%

6.93%

B $74,313.00

$88,290.00

18.81%

$74,313.00

$89,595.00 20.56%

1.76%

C $80,731.00

$95,982.00

18.89%

$80,731.00 $97,400.00 20.65%

1.76%

D $107,495.00 $116,646.00 8.51%

$107,495.00 $118,369.00

10.12%

1.60%

E $76,897.00

 

$91,424.00

18.89%

$76,897.00 $92,775.00

20.65%

1.76%

F

$98,152.00

$106,136.00 8.13%

$98,152.00

$112,976.00

15.10%

6.97%

G $92,402.00

 

$104,829.00 13.45%

$92,402.00 $111,601.00 20.78%

7.33%

H $104,854.00 $113,444.00 8.19%

$104,854.00 $120,788.00 15.20%

7.00%

I

$98,549.00

$111,736.00

13.38%

$98,549.00 $118,966.00 20.72%

7.34%

J

$93,620.00

$106 103.00

13.33%

$93,620.00

$107,671.00

15.01%

1.67%

TOTAL $918,622.00

 

$1,033,259.00 $114,637.00

$918,622.00

$1,075,163.00 $156,541.00

$41,904.00

AVERAGE

INCREASE

 

12.93%

AVERAGE

INCREASE

17.34%

BENEFITS - DECEMBER DATES

BENEFITS - JULY DATES

 

Benefits

Benefits

Benefits Benefits

 

Total

EMP.

12/30/03-12/30/04 12/30/06-12/30/07 Increase

7/1/03-6/30/04 711106-6/30/07 Increase

Difference

A $21,007.00

 

$58,770.00

179.76%

$21,307.00

$61,982.00 190.90%

11.14%

B $20,728.00

$56,013.00

170.23%

$21,028.00 $56,621.00 169.26%

-0.96%

C $21,844.00

$60,188.00

175,54%

$22,144.00 $60,848.00

174.78%

-0.75%

D $26,501.00

$71,402.00

169.43%

$26,801.00 $72,205.00 169.41%

-0.02%

E $22,292.00

$59,040.00

164.85%

$22,592.00

$59,689.00 164.20%

-0.64%

F $21,951.00

$62,605.00

185.20%

$22,251.00

$66,063.00

196.90%

11.70%

G $25,215.00

$66,509.00

163.77%

$25,515.00

$70,158.00

174.97%

11.20%

H $26,042.00

$69,665.00

167.51%

$26,342.00

$73,515.00

179.08%

11.57%

I

$26,374.00 $70,358.00

166.77%

$26,674.00

$74,253.00

178.37%

11.60%

J

$25,445.00

$67,219.00

164.17%

$25,745.00

$67 972.00

164.02%

-0.15%

TOTAL $237,399.00

$641,769.00

$404,370.00

$240,399.00 $663,306.00

$422,907.00

$18,537.00

AVERAGE INCREASE

170.72%

AVERAGE INCREASE

176.19%

2/23/04

RESOLUTION NO.

EXHIBIT C

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, ADOPTING A FOUR-YEAR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF INDIO AND THE POLICE COMMAND UNIT (PCU)

WHEREAS, for the past several months, the authorized representatives of the City of Indio, California (the "City") and the authorized representatives of the Police Command Unit ("PCU") have met, conferred and negotiated in good faith in order to agree upon terms of a new Memorandum of Understanding ("MOU") by and between the City and its employees represented by the PCU bargaining unit; and

WHEREAS, the PCU/City negotiations have yielded an agreement as to certain benefit terms for said new MOU; and

WHEREAS,

the City's negotiators have advised the Council that no

controversies exist between PCU and the City as to non-financial terms for a new MOU;

and

WHEREAS, the Personnel Rules and Regulations provide that the classification plan and the rules and procedures thereof may be amended or revised as the occasion requires; and

WHEREAS, Resolution 6785, adopted by the City on December 30, 2003 erroneously included a reference to the Deferred Retirement Option Program (DROP); and

Resolution 6785 accurately specified all new benefits to be

conferred to PCU in the new MOU with the exception of the new benefit correctly

specified in paragraph two (2) below; and

WHEREAS,

WHEREAS,

clarification of the commencement date of the new MOU in

conformance with PCU demands is appropriate; and

WHEREAS, both PCU and the City wish to accurately memorialize their shared intent regarding the new MOU in a resolution that will supercede Resolution 6785;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. PCU agrees to a four (4) year contract.

2. The City of Indio will contract with CaIPERS to provide the Employer Paid Member Contribution ("EPMC") Converted to Payrate During the Final Compensation Period benefit, in conformance with all applicable legal authority, to PCU members effective at the commencement of contract year two (2).

EXHIBIT C

3. PCU members will receive a one-time $50.00 per month health plan increase. This increases the monthly allowance from $600.00 to $650.00. The increase is effective, and was payable, during the first pay period after the City Council's adoption of the benefit terms of the MOU. This occurred on January 14, 2004.

4. PCU members will receive a 1.5% cost of living increase at the commencement of contract year three (3), and a 3% cost of living increase at the commencement of contract year four (4).

5. At the commencement of contract year three (3), one (1) new salary step representing a 5% pay increase, Step 8, will be added to the City's pay plan for all PCU occupational classes, and at the commencement of contract year four (4) a second new salary step representing a 5% pay increase, Step 9, will be added to the City's pay plan for all PCU occupational classes.

6. The City and PCU agree to a reopener during contract year two (2) to discuss health premiums. This reopener does not contractually or otherwise obligate the City in any fashion_

7. No retroactive pay or benefits will be given.

8. After the City Council's approval as to these benefit terms, both parties will continue to meet and confer to clarify various points in the past MOU between the parties in order to establish mutually acceptable terms and conditions for the new MOU.

9. The City Manager and/or his designee(s) is/are directed to conclude negotiations with PCU as to all non-financial issues, memorialize same together with the benefit terms herein approved, and present a MOU reflecting the final understanding between the City and PCU to the Mayor for execution. The Mayor's execution of this MOU shall bind the City with respect to all of its terms and conditions.

10. The commencement date of each year of the MOU, commencing with 2003, shall be July 1.

11.This resolution shall supercede Resolution 6785 in its entirety.

PASSED, APPROVED and ADOPTED this 3rd day of March, 2004 by the following vote:

AYES:

NOES:

JACQUELINE BETHEL, MAYOR

ATTEST:

CYNTHIA HERNANDEZ DEPUTY CITY CLERK, CMC

EXHIBIT C

CERTIFICATION I, Cynthia Hernandez, Deputy City Clerk of the City of Indio, do hereby certify the

foregoing to be a full, true and correct copy of Resolution No. of the City Council of the City of Indio, adopted by said Council at a regular meeting on the 3rd day of March,

2004.

Cynthia Hernandez Deputy City Clerk, CMC

CITY OF INDIO AGENDA REPORT

Meeting of March 3, 2004

TO:

Honorable Mayor and Members of City Council

THRU: Torn Ramirez, City Manager

FROM: John Corella, Director of Public Works / City Engineer David Merrell, Principal Civil Engineer

DATE: February 19, 2004

SUBJECT: Award of bid for remediation of soil stockpile at city maintenance yard

Summary

Bids were received for the clean-up of the existing soil stockpile located at the City maintenance yard. Staff's recommendation is that City Council award the bid to the lowest responsive bidder, Value Engineering.

Background

Approximately 40,000 cubic yards of petroleum hydrocarbon impacted soil has been stockpiled at the City maintenance yard since 1989. The soil was generated during the construction of the Monroe Street Bridge Crossing project at Indio Boulevard. Remediation of the soil stockpile is required by the California Regional Water Quality Control Board Colorado River Basin Region (CRWQCB). An engineering study was conducted to determine the most feasible method for remediation of the stockpiled soil. The method chosen was bio-remediation or bio-venting. The method involves injecting air into the stockpile through a system of horizontal perforated piping. Vertical monitoring probes are then placed in the stockpile to periodically monitor the detection levels of hydrocarbons. It is anticipated that the process may take up to 18-months to complete before the soil is determined to be suitable for removal. The Regional Water Quality Control Board advised staff that the soil can then be removed from the site and used as backfill material for off-site projects, such as bridge embankments or roadway projects.

03-03-04 Award Bid Soil Remediation Project

Agenda Report Award of Bid for Remediation of Soil Stockpile at City Maintenance Yard Page 2

Four sealed competitive bids were received and publicly opened on January 15, 2004 at 1:30 P.M. The four bids are as summarized as follows (lowest to highest):

Value Engineering American Integrated Services, Inc. Environmental Assessment & Remediation Management Lindmark — CPS

$ 295,190

$ 310,880

$ 351,810

$ 390,560

Staff has reviewed the proposals and determined that Value Engineering is the lowest responsive bidder.

An optional bid item was included in the bid package for operation and monitoring of the bio-remediation system. The optional bid amount totals $15,140 per month, up to a maximum period of 6-months. The additional amount would only be exercised if, at the end of the mandatory one-year operation and monitoring period, it were determined that more time was needed to operate the system to meet regulatory compliance requirements. Combining the base bid ($295,190) with the optional bid amount ($90,840) for a maximum 6-month period, the contract total amounts to

$386,030.

Financial Considerations

The State Water Resources Control Board, Underground Storage Tank (UST) Fund notified the City, in writing, that $386,030 is pre-approved for this project. However, administrative costs encumbered by the City are not considered eligible for funding under the UST guidelines. The project budget and funding sources are summarized as follows:

1. Construction

2. Contract Administration and Engineering Oversight Total

Reviewed and concurred

Jerry Carter, Fin/nee Director

$386,030 (UST Fund) 25,000 (CIP Fund 300)

$

$411,030

Agenda Report Award of Bid for Remediation of Soil Stockpile at City Maintenance Yard Page 3

Staff Recommendation

Staff is recommending that the City Council award the soil remediation project at the City maintenance yard to Value Engineering for the base bid amount of $295,190 and a contingency fee, if required, amounting to $15,140 per month for up to an additional 6-months, for an additional total of $90,840.

Staff is also recommending that the Council authorize the City Manager to negotiate and enter into a contract with Valve Engineering to complete the soil remediation project, including contingency services, if required.

Staff is also recommending that the Council approve a resolution for appropriation of funds in the amount of $411,030 required to cover all related expenditures for this project.

L:\Agenda Reports & Resolutions\AGENDA REPORTS1Agenda Report 2004\03-03-04 Award Bid Soil Remediation Projectdoc

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, TO APPROPRIATE FUNDS TO PAY FOR REMEDIATION OF THE SOIL STOCKPILE AT CITY MAINTENANCE YARD

The City Council of the City of Indio, California DOES HEREBY DETERMINE, ORDER AND RESOLVE as follows:

WHEREAS, the Indio City Council desires to implement the proposed work plan for remediation of the soil stockpile at City Maintenance Yard; and

WHEREAS, the City of Indio has obtained funding from the State of California Water Resources Control Board, Underground Storage Tank Fund to assist in payment of the remediation of the soil stockpile at City Maintenance Yard.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Indio authorizes appropriation of funds in the amount of $411,030 for the remediation of the soil stockpile at City Maintenance Yard, $386,030 (UST Fund) and $25,000 Capital Improvement Fund 300.

PASSED, APPR ED and ADOPTED this 3rd day of March 2004, by the following vote:

,(Y ) _ AYES:

A NBSOEENST:

ATTEST:

CYNTHIA L. HERNANDEZ Deputy City Clerk City of Indio, California

JACQUIE BETHEL, Mayor City of Indio, California

TO:

THRU:

FROM:

DATE:

SUBJECT:

Summary

CITY OF INDIO AGENDA REPORT

Meeting of March 3, 2004

Mayor and City Council

Tom Ramirez, City Manager

John Corella, Director of Public Works/City Engineer David Merrell, Principal Civil Engineer

p-

February 17, 2004

Consider approval of engineering contract with PSOMAS to provide aerial topographic mapping

Engineering staff solicited a proposal from PSOMAS, the firm currently working on the Storm Drainage Master Plan, to provide up-to-date aerial mapping with a 2' contour interval as a tool in development of the plan. The updated mapping will not only enhance the accuracy of the Storm Drainage Master Plan, but will provide other engineering and planning benefits to the City. Staff is recommending that an amendment to PSOMAS's engineering services agreement be executed to provide the aerial mapping services.

Background

PSOMAS was recently hired by the City to develop a city-wide Storm Drainage Master Plan. One important aspect in the development of the plan is aerial topographic mapping. Because the mapping compiled for the City dates back to 1974, PSOMAS is relying on data that is incomplete (the 1974 mapping doesn't cover property north of 1-10) and outdated because it doesn't reflect current development conditions. Also, PSOMAS has had to rely on other mapping, such as USGS Quadrangle maps to supplement the 1974 mapping. Even though the available mapping can be used to prepare a model that defines the drainage features, the results would be significantly less accurate and consequently, not as reliable when compared to up-to-date topographic mapping.

Agenda Report Approve Amendment to PSOMAS contract for aerial mapping Page 2 of 3

The new mapping will combine aerial photographic imagery with T interval contour mapping. GPS technology will be utilized to establish both horizontal and vertical control for the mapping.

There are a number of other relevant planning and engineering benefits associated with the new mapping.

• The new mapping can be utilized as an accurate base map layer for the Geographic Information System (GIS) data source the City currently has available through Riverside County. A GIS system is a repository of information that generates City maps, such as land-use maps, parcel maps, street names, flood district maps, and many other environmental, planning and engineering documents.

• The new mapping can be integrated with additional Global Positioning Survey (GPS) data gathered in the field. For example, GPS data could be gathered for the existing curbs ramps in the City. The GPS data would then be downloaded onto the new maps showing location and condition of the ramps.

• Engineering volume calculations, at the preliminary grading level, can be utilized with this mapping.

• Preliminary storm drainage and runoff studies can be easily supported with this mapping.

• It can serve as a visual aid for both the Planning Department and RDA by combining aerial photography with the contour data. Tri-dimensional simulations can be calculated to support public outreach programs or projects requiring public input. One example would be the visual impact of placing a large water reservoir system near an existing or proposed development.

• Other cities have utilized the level of data generated from this mapping for parking studies, vegetation studies, sidewalk and curb assessments.

Agenda Report Approve Amendment to PSOMAS contract for aerial mapping Page 3 of 3

Financial Considerations

Sufficient funding is available in the Capital Impact Fees (CIF) - Storm Water account.

Reviewed and concurred:

Staff Recommendation

Jerry Carter, finance Director

Staffs is recommending that the City Council authorize the project funding requested and approve a contract amendment to PSOMAS for a not-to-exceed fee of $58,480 for providing digital orthophotography and 2-foot contour mapping services in support of the City's Storm Drain Master Plan. Staff is also recommending that the City Council authorize the City Manager to execute the contact amendment with PSOMAS.

LAAgenda Reports & Resolutions\AGENDA REPORTS\Agenda Report 2004\02-18-04 Award of Contract to Tetra Tech for Monroe Street Project.doc

T

T

AGENDA REPORT

City Council Meeting of March 3, 2004

TO:

Mayor and Council

THRU:

Tom Ramirez, City

Manager

FROM: Susan E. Williams, Community Development Services/ Building & Safety Director

DATE:

February 24, 2004

SUBJECT: Consideration of Planning Commission and City Council Joint Study Session/ Mobile Tour destination and budget allocation for expenses

STAFF RECOMMENDATION:

Staff recommends that the City Council consider the following actions:

Confirm joint study session destinations from the list provided herein, and/or suggest alternate destinations

• Suggest potential tour dates (staff suggests late April, or early May, 2004)

• Authorize budget allocation of $2,350.00 for buses, meals and drinks, printing & reproduction, thank you gifts for hosts.

BACKGROUND:

City Council directed staff to organize an educational mobile tour of new development projects in Southern California. Staff has outlined seven potential destination sites, categorized into three regions (Western Riverside County, Orange County, and Southeast LA County). If the Council has other potential sites of interest, staff would be glad to research these other destinations. The following is a summary of anticipated participants, costs, and the list of destinations.

Attendees:

City Council Planning Commission

10 (5 + 5 guests) 10 (5 + 5 guests)

City Manager's office

3

Planning/RDA

4

Engineering

2

Police/Fire

4

Press

3

Public

10

TOTAL

46

CONSIDERATION OF PC/CC JOINT STUDY SESSION/MOBILE TOUR MARCH 3, 2004 PAGE 2

FINANCIAL IMPLICATIONS:

The following is a breakdown of anticipated costs for the tour event:

Two Mini-Coaches at $550 per coach (23 seats per coach)

$1100.

• Meals/Drinks for 46 persons ($20 per person)

$940.

• Printing/Mailing Costs

$230.

Thank You Gifts

$80.

Total

$2350.

POTENTIAL TOUR DESTINATIONS (Revised 2/24/04)

Western Riverside County

Old Town — Temecula, CA A blend of historic buildings with over 640 antique dealers, unique shopping, and restaurants. Old Town Temecula is the site of many special events including car shows, semi-annual Rod Runs, Western Days, and summer weekend entertainment. Horse-drawn carriages and wooden boardwalks.

Directions:

60 Fwy to 15 Fwy, 15 south to Rancho California Rd —West, quick left on Front Street into Old Town.

Contact:

City of Temecula, 43200 Business Park Drive PO Box 9033 Temecula CA 92589-9033

(909) 694-6444

Cresta Verde Estates by Stonefield Development, Corona, CA

28 Single Family Homes, 3,800 to 5,000 sq. ft. on lots of 20,000 sq. ft. to 1+ acres

Directions:

91 Fwy to 15 Fwy, 15 Fwy south to El Cerrito Road (approx. 3.4 miles), El Cerrito, turn right going west

(becomes Foothill Parkway) about 1.2 miles to Rimpu Avenue, Left (south) on Rimpau Avenue and it

will dead end into Cresta Verde Estate (0.5 miles) Contact:

Art McCaul, Stonefield Development 23333 Avenida La Caza, Coto de Caza, CA 92679, Telephone (949) 581-5090

Orange County

Downtown Brea - Brea, CA Mixed use commercial/ office/residential/artist loft developments, infill urban housing, outdoor pedestrian malls with retail/dining/entertainment uses.

Directions:

60 Fwy to 57 Fwy South to Imperial Highway exit, go west on Imperial Highway to Brea Blvd, turn right

on Brea Blvd (north) to Birch Street. Corner of Brea Blvd and Birch Street is the heart of the mixed-use

projects. Contact: David Crabtree, City Planner (714) 990-7674

CONSIDERATION OF PC/CC JOINT STUDY SESSION/MOBILE TOUR MARCH 3, 2004 PAGE 3

Amerige Heights — Fullerton, CA

Master-Planned community with variety of housing types, neighborhood parks, shopping center, "main street" shopping and sidewalk dining, light industrial center, located in the Sunny Hills neighborhood of Fullerton.

Directions:

60 Fwy to 91 Fwy to Euclid St Exit, turn right on Euclid St, continue on Euclid St (1.5 miles) to Malvern

Avenue, turn left on W. Malvern Ave to the corner of Gilbert Street. Arnerige Height is at the northeast corner of W. Malvern Ave and Gilbert St. Contact: Bob Roark/ Suncal Communities (760) 409-6206

The Block at Orange County - Orange, CA

Open-air promenade shopping center with imaginative mix of shopping, dining, and entertainment uses. Anchor tenants include Orange County's largest AMC Movie Theaters, Borders Books, Dave & Buster's, Power House, Hilo Hattie, OH-' 5`h-Saks Fifth Ave Outlet, Vans Skate Park, Virgin Megastore, and many others. Directions:

60 Fwy to 91 Fwy to 55 Fwy South to 22 Fwy West to The City Drive South exit, turn Left on the City

Drive, then Left on City Pkwy E into The Block

Contact: "The Block" Customer Service (714) 769-4000

Southeast L.A. County

Plaza Mexico — Lynwood, CA

Mexican Town Village shopping center with specialty and Hispanic-marketing retail, Spanish colonial architecture, pedestrian walkways, outdoor plazas with fountains. Project in final stage of construction and includes Banco Popular, Gallo Giro, Chuck E. Cheese, Subway, and Hometown Buffet.

Directions:

60 Fwy to 605 Fwy South to 105 Fwy, take 105 Fwy west to Long Beach Blvd exit, turn right on Long

Beach Blvd and turn left into Plaza Mexico at the southwest corner of Imperial Highway and Long Beach Blvd