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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 4/7/2005 AGENDA REGULAR MEETING of the REDEVELOPMENT AGENCY of the CITY OF SAN JACINTO APRIL 7, 2005 Immediately Following the Regular City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1 . 1 Call to Order 1 .2 Roll Call 2, PUBLIC COMMENTS None 3m PUBLIC HEARING: Now is the time for the public to address the Agency on any subject not listed on the agenda. Any person may address theAgency on any subjecipertaining to Redevelopment Agency business not listed on the Agenda during this portion of the Meeting. A limitation of three (3) minutes shall be setfor each person desiring to address the Agency Directors. 4n CONSENT CALENDAR The matters listed under Consent Calendar are considered routine and will be enacted by one motion by Agency Members in the form listed. There will be no separate discussion on these items prior to the motion unless members of the Redevelopment Agency, staff or the public requests a specified item be removed andlor discussed. Any agenda item pulled will be heard at the end of 5. City Departments. Anyone wishing to discuss a consent calendar item should come forward upon invitation of the Agency Chairman; state their name, address and the consent calendar item number. Speakers should limit comments to three (3) minutes. 4. 1 March 17, 2005 Minutes / Approve / City Clerk 4.2 Tony's Seafood Landing Settlement / Approve and Appropriate $60,000 from Undesignated, Unreserved San Jacinto RDA Capital Project Fund and Reserve Balance to fund settlement / Finance Director Redevelopment Agency Agenda ApH1712005 Pana 2 of 3 43 Exclusive Right to Negotiate between the RDA and MPJR, Inc / Approve the revised Excusive Right to Negotiate Agreement between the Redevelopment Agency of the City of San Jacinto and MPJR, In. , and Authorize the RDA Executive Director to sign the agreement Redevelopment Operations Manager 5m CITY DEPARTMENTS 5. 1 Professional Services Agreement with Rosenow Spevacek Group (RSG) for RDA Bond Refinancing Fiscal Analysis / Approve Professional Services Contract with RSG to perform the fiscal analysis for the proposed refinancing of the 1993 RDA Tax Allocation Bonds and Appropriate $25,000 from the San Jacinto RDA Capital Project Fund Unreserved, Undesignated Fund Balance Reserve and Authorize Agency's Executive Director to execute contract / Finance Director 5.2 Enhanced Senior Home Repair Grant Program / Approve and Authorize a transfer of $17,000 from the Unallocated Redevelopment Agency Low and Moderate Income Housing Fund to cover startup costs and provide funds for initial grants and Authorize staff to work with the United Way to develop an Enhanced Senior Home Repair Program for low-income seniors I Redevelopment Operations Manager 6, CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None 7, OPEN SESSION ANNOUNCEMENTS CLOSED SESSION 7A CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Park Manor Property (southeast corner of First Street and Estudillo Avenue and southwest corner of First Street and Pico Avenue (APNs 437-023�001 � 437-023-002 and 437-023-005) Agency Negotiator: Peter Cosentini, Executive Director Negotiating Parties: San Jacinto Assembly of God Church Under negotiation: Price and terms of payment 8, ADJOURNMENT It is the intention ofthe City qfSan Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. If as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please Redevelopment Agency Agenda April 7. 2005 Page 3 of 3 contact City Hall at (909) 48 7-733 0, at least 48 hours prior to the meeting to inform us ofyourparticular needs and to determine if accommodation isfeasible. Ifyo u ch allenge any action ofthe City Co uncil in court, yo u may be limited to raising only those issues yo u or someone else raised at thepublic hearing described in this notice, or in written correspondence delivered to the City Council (Clo the City Clerk) at, orprior to, the public hearing. 1, (Do rot hy L. Chou inard, Secretary of the San Yacinto W§development Agency, do here by certify that I caused to be posted theforegoing agenda theist day ofApriC 2005, as required 6y raw. AGENDA REGULAR MEETING of the REDEVELOPMENT AGENCY of the CITY OF SAN JACINTO APRIL 7, 2005 Immediately Following the Regular City Council Meeting San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California 14 ORGANIZATION 1 . 1 Call to Order 1 .2 Roll Call 2, PUBLIC COMMENTS None 3a PUBLIC HEARING : Now is the time for the public to address the Agency on any subject not listed on the agenda. Any person may address theAgency on any subjectpertaining to Redevelopment Agency business not listed on the Agenda during this portion of the Meeting. A limitation of three (3) minutes shall be setfor each person desiring to address the Agency Directors. 4v CONSENT CALENDAR The matters listed under Consent Calendar are considered routine and will be enacted by one motion by Agency Members in the form listed. There will be no separate discussion on these items prior to the motion unless members of the Redevelopment Agency, staff or the public requests a specified item be removed andlor discussed. Any agenda item pulled will be heard at the end of 5. City Departments. Anyone wishing to discuss a consent calendar item should come forward upon invitation of the Agency Chairman; state their name, address and the consent calendar item number. Speakers should limit comments to three (3) minutes. 4. 1 March 17, 2005 Minutes / Approve / City Clerk 4.2 Tony's Seafood Landing Settlement / Approve and Appropriate $60,000 from Undesignated , Unreserved San Jacinto RDA Capital Project Fund and Reserve Balance to fund settlement / Finance Director Redevelopment Agency Agenda ApH1712005 Paae 2 of 3 4.3 Exclusive Right to Negotiate between the RDA and MPJR, Inc / Approve the revised Excusive Right to Negotiate Agreement between the Redevelopment Agency of the City of San Jacinto and MPJR, In. , and Authorize the RDA Executive Director to sign the agreement Redevelopment Operations Manager 5, CITY DEPARTMENTS 5, 1 Professional Services Agreement with Rosenow Spevacek Group (RSG) for RDA Bond Refinancing Fiscal Analysis / Approve Professional Services Contract with RSG to perform the fiscal analysis for the proposed refinancing of the 1993 RDA Tax Allocation Bonds and Appropriate $25,000 from the San Jacinto RDA Capital Project Fund Unreserved, Undesignated Fund Balance Reserve and Authorize Agency's Executive Director to execute contract / Finance Director 5.2 Enhanced Senior Home Repair Grant Program / Approve and Authorize a transfer of $17,000 from the Unallocated Redevelopment Agency Low and Moderate Income Housing Fund to cover startup costs and provide funds for initial grants and Authorize staff to work with the United Way to develop an Enhanced Senior Home Repair Program for low-income seniors / Redevelopment Operations Manager 6a CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None 7a OPEN SESSION ANNOUNCEMENTS CLOSED SESSION 7. 1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Park Manor Property (southeast corner of First Street and Estudillo Avenue and southwest corner of First Street and Pico Avenue (APNs 437-023-001 , 437-023-002 and 437-023-005) Agency Negotiator: Peter Cosentini, Executive Director Negotiating Parties: San Jacinto Assembly of God Church Under negotiation: Price and terms of payment 8a ADJOURNMENT It is the intention afthe City ofSan Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. If as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please Redevelopment Agency Agenda April 7, 2005 Page 3 of 3 contact City Hall at (909) 487-7330, at least 48hoursprior to the meeting to infonn us ofyourparticular needs and to determine if accommodation isfeasible. Ifyou challenge any action ofthe City Council in court, you maybe limited to raising only those issuesyou or someone else raised althepublic hearing described in this notice, or in written correspondence delivered to the City Council (clo the City Clerk) at, orprior to, the public hearing. I Dorothy L. Chou inard, Secretary of tfieSanjacin to WSdeveropment Agency, do hereby cc rtify that Ica used to be postedtheforegoing agenda the lit day ofApriC 2005) as required by faw. AGENDA 4s MINUTES REGULAR MEETING of the REDEVELOPMENT AGENCY of the CITY OF SAN JACINTO MARCH 17, 2005 8:26 p.m. San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION lul Call to Order Chairperson Buydos called the regular meeting of the Redevelopment Agency of the City San Jacinto to order at 8:26 p, m. 1 ,2 Roll Call Present: Jim Ayres, Chris Buydos, Robert Ritchie, Ken Shaw, Dale Stubblefield 2m PUBLIC COMMENTS None 3w PUBLIC HEARING : None 4a CONSENT CALENDAR 4. 1 March 3, 2005 Minutes / Approve / City Clerk 4.2 Funding for a Historic Structure Report for the Francisco Estudillo Heritage Park and Mansion Restoration Project / Approve redevelopment funding Redevelopment Operations Manager Agenda item 4.2 was pulled and is to be brought back to the regular City Council at a later date. M/S/C (Shaw I Buydos) moved to approve Consent Calendar Item 5.1 as presented. Motion carried 3/0. Redevelopment Agency Minutes March 17, 2005 Page 2 Of 2 Ayes: Ritchie, Shaw, Buydos Nays: None Absent: None Abstain : Ayres, Stubblefield (both were absent at 3/3/05 meeting) 58 CITY DEPARTMENTS None 6m CHAIRPERSON / MEMBER REPORTS / DISCUSSIONS None 7o OPEN SESSION ANNOUNCEMENTS CLOSED SESSION None 8, ADJOURNMENT With no further business before the Board of Directors, Chairperson Buydos adjourned the meeting at 8:26.5 p.m . Redevelopment Agency of the City of San Jacinto by Chris Carlson Buydos ATTEST: Dorothy L, Chouinard , Agency Secretary RDA AGENDA ITEM .a April 7, 2005 TO: The Honorable Board Members of the Redevelopment Agency of the City of San Jacinto FROM: Bernie Simon, inance Director SUBJECT: Appropriation of $60,000 to pay $60,000 Tony's Seafood Settlement RECOMMENDATION: By motion, appropriate $60,000 from Undesignated, Unreserved San Jacinto RDA Capital Project Fund (096), and Reserve Balance to fund settlement. BACKGROUND: The Board of the Redevelopment Agency of the City of San Jacinto announced, after a closed session meeting on February 17, 2005, a settlement of$60,000 with the United States Trustee representing the claim of Tony's Seafood Landing against the City of San Jacinto. This action is to clean up the details of the agreed to funding. Because Tony's Seafood Landing was an RDA project, such settlement funds should come from RDA funds. In addition, an appropriation of funds must be made in open session. JUSTIFICATION: Cleans up action, and appropriates the funds from a funding source. BUDGETARY IMPACT: Increases expenditure account 096-1111-411-3090 by $60,000; reduces Undesignated, Unreserved San Jacinto RDA Capital Project Fund Balance Reserve by $60,000. ATTACHMENTS: Approvals City Manager:�All None Finance Director. l AGENDA ITEm .4 . 3 April 07, 2005 TO: Redevelopment Agency Board of Directors FROM: Steven G. Pasarow, Redevelopment Operations Manager SUBJECT: Exclusive Right to Negotiate between the Redevelopment Agency of the City of San Jacinto and MPJR, Inc. RECOMMENDATION : Staff recommends that the Redevelopment Agency Board of Directors approve the Revised Exclusive Right to Negotiate Agreement between the Redevelopment Agency of the City of San Jacinto and MPJR, Inc. , and authorize the Executive Director to sign the agreement. BACKGROUND: On August 5, 2003, the Agency Board approved the proposed Exclusive Right to Negotiate (ERN) for the purchase of Agency property at the northeast comer of San Jacinto and Commonwealth Avenues. The ERN provides for negotiation only with Mr. Mackey and Mr. Meyer, during the term of the agreement. The terms of the ERN include: I . The term will be six (6) months with a non-refundable fee $10,000, conditioned upon delivery of clean/insurable and marketable title. 2. Two extensions may be granted for a period of three (3) months each. A non-refundable fee of $7,000 for each three (3) month extension period will be required. 3. The total term, with extensions will be for a period of twelve ( 12) months. The fees charged will not be used to reduce the purchase price. 4. No fast food restaurants can be developed on any portion of the property. 5. The Developer shall work in good faith towards the goal of acquiring all of the adjacent properfies. Approvals City Manager: 1� 4/ — Finance Director: 6. The Developer shall develop a detailed description of the project and project amenities for all adjacent properties. 7. The purchase price of the Agency property will be determined by a new or updated appraisal commissioned by the Agency upon execution of the ERN. With the approval of the ERN by the Agency in August 2004, the Developer submitted his required payment of $10,000 and the staff promptly initiated a re- appraisal of the property. That appraisal indicated that as of October 01 , 2004 the value of the parcel was $450,000. This new appraised value sets the purchase price of the parcel for the developer when he exercises his right to purchase under the terms of the ERN . In the fall of 2004, the Developer indicated that potential lessee's for this site were reluctant to commit to a project until the construction of the Wal-Mart became a certainty and the Developer requested that the Agency consider extending the effective date of the ERN until the date that Wal-Mart commences construction of their store. On February 3, 2005, the Agency approved the Developers request to extend the effective date of the ERN to the earlier of the date that Wal-Mart commences construction or April 15, 2005. The new Super Wal-Mart is scheduled to begin construction by the middle of April and the developer is now in a position to plan for and negotiate leases for a new retail center on the Agency property. JUSTIFICATION : Entering into an extension of the ERN will allow the Agency to sell the Commonwealth property and facilitate a retail development. Proceeds from the sale will go to the Redevelopment Agency. Upon the development of the property, the Tax Increment will also go to the Redevelopment Agency and sales tax to the General Fund. Aside from any transfer fees, there will be no impact on City's Redevelopment or General Fund. BUDGETARYIMPACT: The Agency has already received $10,000 from the Developer and may receive up to an additional $14,000 with extensions (if elected) for holding the property during the negotiation period. 8 ATTACHMENT, Revised Exclusive Right to Negotiate Agreement EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT between THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO a public body, corporate and politic and SAN JACINTO INVESTORS GROUP, LLC a California limited liability company [DATED AS OF AUGUST 5� 2004 FOR REFERENCE PURPOSES ONILYI RA/PUB\ jsB\ 66057s . 5 This EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT is dated as of August 5. 2004 for reference purposes only ("Agreemenn and is entered into by and between: (i) the REDEVELOPNIENT AGENCY OF THE CITY OF SAN JACINTO, a public body corporate and politic C'Agency'l existing and acting pursuant to California Community Redevelopment Law (Health and Safety Code Section 33000 et seq) C'CRL"), and (ii) SAN JACINTO INVESTORS GROUP, LLC, a California limited liability company ("Developer') to coordinate mutual planning and consideration of the redevelopment of certain real property. Developer and Agency are sometimes referred to in this Agreement, individually as "P arty" and, collectively as "Parties." RECITALS This Agreement is entered into with reference to the following recitals of fact C'Recitals") that Agency and Developer believe to be true, as of the Effective Date (defined in Section 1) of this Agreement: WHEREAS, in accordance with CRL, the City Coimcil of the City of San Jacinto C-Cityc � approved and adopted a redevelopment plan C'Redevelopment Plarn for the redevelopment project area known as the San Jacinto Project Area CTroject Ared'), by City Ordinance Number 754 on June 28, 1983; and WHEREAS, the Agency owns four (4) parcels of certain real property ("Property") generally located at the southwest comer of Commonwealth Avenue and Highway 79 within the Project Area (Assessor Parcel Numbers: 439-110-093, 439- 110-025, 439- 110-031 and 439-110-032) (collectively referred to "Agency Property"); and WHEREAS, the Agency Property is located adjacent andprox=ite to eight (8) parcels of realproperty generally located off of Commonwealth Avenue within the Project Area (Assessor Parcel Numbers: 439-110-24, 439-110-0301 439-110-0261 439wII0-03037 439-110-027� 439-110-0347 439-110-0352 439-110-087) (collectively referred to as "Adjacent Property"); and WHEREAS, the Agency Property and the Adjacent Property are referred to in this Agreement as "Property'�; and WHEREAS, the Property is depicted in the site map attached as Exhibit A to this Agreement and incorporated into this Agreement by reference; and WHEREAS, Developer is interested in acquiring the Property and redeveloping the Property as a commercial project C'Prcject`�; and WHEREAS, Agency and Developer desire, subject to the terms of this Agreement, to enter into a period of exclusive negotiation concerning: (i) the Agency's sale of the Agency Property to Developer, (ii)the Agency's potential assistance in acqu=ii g the Adjacent Parcels, and (ii) the Developer's development of the Project on the Property in accordance with the Redevelopment Plan; and WHEREAS, Agency and Developer agree that the object of their negotiations is the negotiation and documentation of a disposition and development agreement between them that would govern the sale of the Agency Property to Developer, the acquisition of the Adjacent Parcels, and the development of die Project by the Developer C'DDA"). RV?UB\ JSB\ 661D3� 5 - 5 Now, therefore7 in view Of the goals and objectives of Agency relating to the implementation Of the Redevelopment plan and the covenants, and promises of Agency and Developer, as set forth in this Agreement, Agency and Developer agree as f011Ows: ARTICLE I EFFECTIVE DATE; NEGOTIATION PERIOD; AGENCY: DEVELOPER 1 . 1 Effective Date. This Agreement is dated as of August 5. 2004 for reference Purposes Only. This Agreement will not become effective until the date CcEffective Da&� on which all of the following are wae: W execution of this Agreement by the authorized representatives of Developer, (ii) approval of this Agreement by the governing board of the Agency, (iii) execution Of this Agreement by the authorized representatives of Agency; and (iv) the earlier of either: (1) the issuance of the first building permit for construction,of the proposed Walmart building at the southeast comer of S an Jacinto Street and Commonwealth Avenue; or (2) April 15, 2005, If aft of the foregoing conditions precedent have not occurred by April 15, 2005 then this Agreement may not thereaftex become effective and any prior signatures or approvals of the Parties will be deemed of no force or effect. 1 .2 NegQtdation Period- Extension Period. Extension Price. This Agreement shall continue in effect for a period of one hundred eighty (180) calendar days following the Effective Date CNegotiation Period). The Negotiation Period may be extended upon the mutual written consent of the Agency 7 s Executive Director and "Exte ion Developer for up to two (2) additional ninety (90) calendar day periods (each referred to as an * ns Perio&')-, provided however that prior to Agency providing its written consent to extend the Negotiation Period by any Extension Period, Developer shall deliver to Agency the sum of Seven Thousand Dollars ($7,000) in a form of security acceptable to the Agency C'Extension Price`�. The Extension Price for each Extension Period shall be non-reftindable to Developer and Agency shall be entitled to keep the Extension Price for each Extension Period upon receipt. In no event shall the Negotiation Period, including any Extension Period, exceedthree hundred sixty (360) calendar days. aiR Stree� 13 Agency Agency's address for notices required or allowed under this Agreement is 201 East M San Jacinto, California, 92582; Attention: Peter Cosentim`, telephone: (951) 487-7330; facsimile: (951) 654- 3728. All of the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the Agency and its nominees, successors and assigns. 1 .4 Develgper. Developer's address for notices required or allowed under this Agreement is 5225 Canyon Crest Drive, Suite 166, Riverside, California 92507; Attention: Joe Meyer; telephone: (951) 248-1100; facsimile: (951) 249-1210. All of the terms, covenants and conditions of this Agreement shall be bindingon and shall inure to the benefit of the Agency and its nominees, successors and assigns. Wherever the term "Developer" is used herein, such term shall include any permitted nominee, assignee or successor of Developer. ARTICLE 11 EXCLUSIVE RIGHT TO NEGOTIATE 2. 1 Good Faith Negotiations. Agency and Developer agree, for the term of this Agreement, to negotiate in good faith the terms and conditions of a DDA for the sale of the Agency Property to Developer, the acquisition of the Adjacent Property, and development of the Project on the Property by the Developer. During the tennoft.his Agreement, Agency agrees to negotiate exclusively with the Developer, and not with any other person or entity, with regard the sale of the Agency Property, acquisition of the Adjacent Property or development of the Project on the Property. RVpU3\J53\6G05_75 . 5 2. 1. 1 The term "negotiate exclusively" as used in this paragraph shall preclude Agency from accepting 0 4 acquisition proposals for the Agency Property from persons or entities other than Developer, or its representatives or lenders, or discussing with persons or entities other than Developer or its representatives or lenders, acquisition and development plans for the Agency Property and Project which might be acceptable to Agency. 2. 1.2 Agency shall not be precluded by anything in this Agreement from furnishing to other persons or entities unrelated to Developer information related to the Redevelopment Plan for the Project Area. TheAgency may also furnish any information concerning the Property and the Project which it is required by law to furnish or which it would otherwise normally fiwnish to persons requesting information from the Agency concerning its activities, goals and matters of a similar nature. 2.2 Neizotiationofaf)DA� Oblintions During the Ne2otiating Perio During the term of this Agreement, the Parties shall cooperate and work in good faith towards the goal of negotiating a mutually acceptable DDA concerning the sale of the Agency Property to Developer, the acquisition of the Adjacent Property and the development of the Project on the Property. The exact terms and conditions of the DDA, if any, shall be determined during the course of these negotiations. 2.2. 1 In consideration for Agency entering into this Agreement, Developer shall, on a best efforts and good faith basis, undertake its obligations under this Section 2.2. 1 . Developer shall during the term of this Agreement, at Developer's sole cost and expense, take all reasonable actions for determil=* 9 the feasibility of the development of the Property and the Project, including but not limited to determining Developer's ability to acquire the Adjacent Property. Developer's performance of its obligation to determine the feasibility of the development of the Project and the Property, as set forth in this Section 2.2. 1, shall be measured by the following performance standards: 2.2. 1. 1 Developer's efforts to contact and communicate with all of the owners of the Adjacent Property to determine their willingness to sell their respective portions of the Adjacent Property to Developer. Developer shall: (i) mail letters to, and (iii) personally contact (either through person-to-person meetings or telephone conferences initiated by either Dennis C. Mackey or Joe Meyer) all of the owners of the Adjacent Property. 2.2. 1.2 Developer's efforts to complete a conceptual development plan for the Project that describes and depicts: (a) the location and placement of proposed buildings, (b) the size, features and amenities of proposed building; and (c) the proposed land use categories on a parcel-by-parcel basis. 2.2, 1.3) Developer's efforts to develop a proposed time schedule and cost estimates for the development of the Project. 2.2. 1 .4 Developer's efforts to develop a proposed financing plan identifying financing sources for all private and public improvements proposed for the Project. 2.2. 1 .5 Developer's efforts to timely present a summary of the information set forth in Sections 2.2. 1. 1 through 2.2. 1 .4 to the Agency for its review prior to the expiration of the Negotiation Period. 2.2.2 Agency and Developer agree that, if this Agreement expires or is terminated for any reason or a DDA is not executed by both Agency and Developer, for any reason, neither Agency nor Developer shall be under atky finther obligation to each other. -RV2UB\JSB\ 660575 . 5 2.23 Nothing herein shall be deemed to be a representation by either Agency or Developer that a mutually acceptable DDA will be produced- Nothing herein shall be deemed to be a guarantee or representation that any proposed DDA which may be negotiated by Agency staff and Developer will be approved by the governing board of the Agency and/or the City Council of the City. Developer acknowledges that Agency's approval of the DDA is subject to the appropri�te public hearings, notices, and factual findings required by the CRL, the California Environmental Quality Act ("CEQA") and other relevant legal provisions. 2.3 Good Faith ftosit. Simultaneous to Developer's delivery of an executed copy of this Agreement to Agency, Developer shaU deliver to Agency a good faith deposit in the amount of Ten Thousand Dollars ($10,000) in a form of security acceptable to the Agency ("Deposit ) to insure that Developer will proceed diligently and in good faith to fliffill its obligations under this Agreement and as consideration for Agency's grant to Developer of this exclusive right to negotiate for the term of this Agreement. If the Deposit is in the form of cash or a certified cashier's check, it shall be deposited in an interest bearing account in a bank selected by Agency. Interest, if any, shall be added to the Deposit and held as additional security. The Deposit shall be refunded or released to Developer only upon receipt by Agency of written direction from Developer at any time prior to sixty (60) calendar days after the Effective Date C'Developer's Due Diligence Period"). If, upon the expiration of the Due Diligence Period, the Agency has not received written direction from the Developer to refund or release the Deposit, then Agency shall thereafter be entitled to keep the Deposit and any accrued interest thereon. The foregoing notwithstanding, in the event that the Parties execute a DDA prior to the termination of this Agreement, the Deposit shall be credited and applied by Agency to the purchase price of the Agency Property. 2.4 DDA Business Points. The Agency and Developer acknowledge that the following shall be the basic business points which shall control the negotiation and preparation of the DDA: 2,4. 1 Purchase Price for the Agency PrWerty: Appraisal Report, Agency has, at its sole cost and expense: (i) caused to be prepared a report appraising the value of the Agency Property C'Appraisal Reporn by an independent third party appraiser chosen by the Agency, in its sole and absolute discretion, and (d) delivered the Appraisal Report to Developer. The Parties agree that the Appraisal Report is intended to serve as the basis for establishing the purchase price for the Agency Property under the DDA.. 2.42 Prohibition Against Development of Fast Food Restaurant. Agency and Developer acknowledge and agree that: (i) the Project shall not include the development of a fast food restaurant on any portion of the Agency Property, and (U* ') the DDA shall include an express provision prohibiting the development of a fast food restaurant on any portion of the Agency Property. 2.4.3 Development Fees and Infrastructure. Agency and Developer acknowledge and agree that: (i) Developer shall be responsible for all Project development costs, fees and mitigation measures, including the payment of any development impact fees imposed by the City, the Agency, school districts, and other governmental agencies, and (H) the DDA shall include express provisions providing for Developer's sole responsibility for all Project development costs, fees and mitigation measures. The Agency shall assist Developer in identi��incr and determmimig the applicability of any fee credits as to which the Project may be eligible. In addition, the Agency may assist the Developer in the payment of any development impact fees imposed by governmental agencies or may assist with development costs. Such assistance Will be determined as part of the DDA negotiations. 2.4.4 AdequaZ of Developer Financin Developer apiglowledges that it may be requested to make certain confidential financial disi;losures to Agency, its staff or legal counsel, as part of the financial due cbhgence .4. RV2UB\ JS3\ 660575 . 5 investigations of Agency relating to the potential acquisition of the Property and development of the Project by Developer, Developer further acknowledges that, as part of the DDA negotiations, the Developer must be able to demonstrate, to the satisfaction of the Agency, in its sole discretion, that Developer will have appropriate and adequate financing in place to acquire the Property and develop the Project, and a Project budget and Project schedule of performance proposed by Developer must be reviewed and approved by the Agency. 2.4.5 Design Process. Design of the Project will be of paramount concern to the Agency. Developer acknowledges that the Project will be designed and built with a level of architectural style and interior and exterior amenities consistent with City and Agency standards and equal to the prevailing standard being constructed in the City. The design process will involve Developer and the City's Planning, Public Works, Development and other City departments. A detailed and refined scope of development, including (but not limited to) architectural features and other design documents, shall be completed and approved prior to the Agency's consideration and approval of a DDA. 2.4.6 Power of Terminatiom The DDA shall include a power of termination provision, allowing the Agency to reclaim ownership of the Property and the improvements if Developer fails to complete the Project as required, or if Developer abandons or delays construction beyond certain deadlines to be established in the DDA. If the Agency retakes the Project, the Agency will undertake good faith efforts to resell the Project and distribute the sale proceeds according to a formula which may result in Developer receiving back a portion of its investment. 2.4.7 Prohibition on Unpermitted Encumbrances and Financings. The DDA shall provide that� prior to the issuance of a certificate of completion for the Project, Developer may not assign the DDA or convey any of the Project (other than sales to individual lot owners) -without the Agency's written consent. The DDA may include certain "pre-approved" transfers/assignments and encumbrances (such as construction financing). 2.5 Termination of this Agreement. This Agreement shall automatically expire and be of no further force or effect at the end of the one hundred eightieth (180,11) calendar day following the Effective Date, unless prior to that time: 2.5, 1 a DDA, acceptable in form and content to both Acrency staff and Developer, is executed by Developer, delivered to the Agency, and presented to the governing board of the Agency and the City Council of 0 the City for consideration (in which case this Agreement shall terminate on the effective date of any such DDA); or 2.5 .2 the governing board of the Agency and/or City Council of the City disapprove of any proposed DDA presented by Developer and Agency staff (in which case this Agreement shall terminate on the date of such disapproval); provided, however, that in their sole discretion, the Agency and Developer may, within fifteen (15) calendar days from such disapproval, mutually elect in writing to extend this Agreement pursuant to Section 1.2; or .5. RV2U3\ J3B\660573 - 5 2.5.3 either Party determines in good faith that the other Party is in material default of that Party's obligations under this Agreement and such defaulting Party has failed to cure such default within fifteen (15) calendar days following written notice from the Party alleging the default or, if such default cannotbe reasonably cured within such fifteen (15) calendar days, the defaulting Party has failed to commence to me the default within fifteen (15) calendar days and/or has failed to diligently prosecute such cure to completion thereafter; or 2.5.4 the Negotiation Period is ended for one (1) or more Extension Periods as provided in Section 12 (in which case this Agreement shall terminate at the end of the last calendar day of the last Extension Period). 2.6 Lunitation on Remedies for Breach and Release of Claims. Agency and Developer both acknowledge that they would not have entered into this Agreement if they were to be liable to the other for an unknown amount of monetary damages or other remedies. Accordingly, each Party acknowledges and agrees that its exclusive right and remedy upon the uncured default of this Agreement by the other Party is to terminate this Agreement, without cost, expense or liability to either Party. Each Party acknowledges that it is aware of the meaning and legal effect of California Civil Code Section 1542, which provides: "A general release does not extend to claims which the creditor does not 11<now or suspect to exist in his favor at the time of executing the release, which if known by him would have materially affected his settlement with the debtor." California Civil Code Section 1542 notwithstanding, it is the Agency's and Developer's intention to be bound by the limitation on damages and remedies set forth in this Section 2.6, and each Party hereby releases any and all claims against the other for monetary damages or other legal or equitable relief related to such breach, whether or not such released claims were known or unknown to the Parties as of their entry into this Agreement. Agmcy and De�veloper each hereby waive, but only as to the claims released under this Section 2.6, the benefits of California Civil Code Section 1542 and all other statutes andjudicial decisions (whether state or federal) of suimilar effect. ARTICLE III GENERAL TERMS 3. 1 Solicitation and Conflicts of Interest. Developer maintains and warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for Developer, to solicit or secure this Agreement. Further, Developer warrants it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Developer, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the making of this Agreement. For the term of this Agreement, no member, officer or employee of Agency, during the term of his or her service writh Agency, shall have any direct or indirect interest in this Agreement or obtain any present or anticipated material benefit arising therefrom. RVOUB\ JSB\ 660575 . 5 3.2 Disclosurea and CgWerati Agency and Developer shall generally cooperate with each other and supply such documents and mformation as may be reasonably requested by the other to facilitate the conduct of the negotiations that are the subject of this Agreement. Without limiting the generality of the foregoing, Agency particularly reserves the right to obtain further information, data and commitments to ascertain the ability and capacity of Developer to acquire the Property and develop the Project. Unless precluded by law, Agency shall keep confidential all proprietary information provided by Developer to Agency. Agency shall prepare such public notices and schedule such public hearings, in accordance with the CRL and other relevant law, as may be necessary for the governing board of the Agency and City Council of the City to consider any proposed DDA which may be agreed upon between Agency staff and Developer. Developer expressly acknowledges and agrees em g cy aff urin th that Agency will not be bound by any stat ent, promise or representation made by A en , st d g e course of negotiations of a DDA and that the Agency shall be legally bound only upon the approval of the DDA by the governing board of the Agency and the City Council of the City, in accordance with the provisions of the CRL. 3 .3 Attornevs' Fees. In the event of the bringing of an arbitration, action or suit by a Party against the other Party arising out of the breach of this Agreement or any other dispute between the Parties concerning this Agreement or Property, then, in that event, the prevailing Party in such action or dispute, whether by final judgment or arbitration award, shall be entitled to have and recover of and from the other Party all costs and expenses of suit or claim, including actual attorneys' fees. Any judgment, order or award entered in any final judgment or award shall contain a specific provision providing for the recovery of all costs and expenses of suit or claim, including actual attorneys' fees (collectively, "Costs'� incurred in enforcing, perfecting and executing such judgment or award. For the purposes of this Section 3.3, Costs shall include, without implied limitation, attorneys' and experts' fees, costs and expenses incurred in the following: (i) postiudgment motions and appeals, (ii) contempt proceedings, (iii) garnishment, levy and debtor and third party exanuination; (iv) discovery; and (v) bankruptcy litigation. This Section 3 .3 shall survive any termination of this Agreement. 3.4 Governing Law; Jurisdiction and Venue. This Agreement shall be interpreted arid enforced in accordance with the provisions of California law in effect at the time it is executed, without regard to conflicts of laws provisions. Any action brought concerning this Agreement shall be brought in the appropriate state court for the Countv of Riverside, California. Each Party hereby irrevocably consents to the jurisdiction of said court. Developer hereby expressly waives all provisions of law providing for a change of venue due to the fact that Agency and/or the City may be a party to such action, including, without limitation, the provisions of Califomia Code of Civil Procedure Section 394. Developer ftu-ther waives and releases any right it may have to have any action concerning this Agreement transferred to Federal District Court due to any diversity of citizenship which may exist between Agency and Developer or due to the fact that a federal question or right is alleged or involved in such action. 3 .5 No Third Partv Beneficiaries. Agency and Developer expressly acknowledge and agree that they do not intend, by their execution of this Agreement� to benefit any persons or entities not signatory to this Agreement, including, without limitation, any brokers representing the Parties to this transaction. No person or entity not a signatory to this Agreement shall have any rights or causes of action against either Agency or Developer arising out of or due to Agency and Developer's entry into this Agreement. 3 h aken .1 .6 Counterpart Originals. This Agreement may be executed in counterpart originals which, w en t together, shall constitute but one and the same instrument. 3.7 Press Releases. Developer agrees to obtain the approval of the Executive Director of Agency or his or her designee or successor in function of any press releases Developer inky propose relating to the acquisition or -7- RVDTJB\JSB\ 650575 - 5 redevelopment of the Property prior to publication. 3.8 Notice. All notices required under this Agreement shall be presented in person, by a nationally recognized overnight delivery service or by facsimile and confirmed by first class certified or registered United States mail with return receipt requested to the address and/or fax number for the Party set forth in Sections 1 .3 and 1 .4. Notice shall be deemed confirmed by United States mail effective the second (2d) business day after deposit with the United States Postal Service. Notice by personal service or nationally recognized overnight delivery service shall be effective upon delivery. Either Party may change its address for receipt of notices by noti4i�g the other Party in writing. 19 an agree that has j Develgper Aeguires No Interest in Prgpertv from Agocv. Developer acknowledges d s it not acquired and will not acquire, by virtue of the terms of this Agreement, any legal or equitable interest in real or personal property from Agency. [Signatures On Following Pages'] RVPUB\JSB\ 660-�75 , 3- SIGNATURE PAGE TO EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT AGENCY: REDEVELOPM[ENT AGENCY OF THE CITY OF SAN JACINTO, a public body, corporate and politic By: Peter Cosentim* Executive Director ATTEST: By: Agency Secretary APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP Bv: Kevin K. Randolph Agency Counsel RV?U3\jSB\ 660575 . 3 SIGNATURE PAGE TO EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT DEVELOPER: SAN JACINTO RWESTORS GROUP, LLC a California limited liability company By: /Demus C. Mac e�y) Its: Date: By: Joe Meyer Its: Date: R�IPUB\JSB\ 660575 . 5 EXHIBIT A TO EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT Site Map [Attached Behind This Page] Exdubit A tA 4q. IV Wo Id I If 'If t. % ..� . Ll�l 62 0 —000 10 14TO 010-011 010-091 010-016 0.10-022 LOT A Imp 4 L07 IVZ4 273 . 02 ftf PARI Lor c .2 (73) PAIM Z PAR -I 57 . 33 66 , 2001 r L12 AC ANGILL P, Be 308 . LA POR PAR.3 709 PAR . 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PM NO 28465 Jul 1999 RDA AGENDA ITEM 5- April 7, 2005 TO: The Honorable Chairperson Chairperson and Members of the RDA Board 4 FROM: Bernie Simon, Finance Director SUBJECT: Approve and Appropriate— Professional Services Agreement with RSG for RDA Bond Refinancing Fiscal Analysis RECOMMENDATION: By motion, 1) Approve professional services contract with RSG to perform the fiscal analysis for the proposed refinancing of the 1993 RDA Tax Allocation Bonds. 2) Appropriate $25,000 from San Jacinto RDA Capital Project Fund Unreserved, Undesignated Fund Balance Reserve (096). 3) Authorize Agency Director to execute contract. BACKGROUND: On January 20, 20053 RDA Board approved staff direction to proceed on work to refinance the 1993 $4,130,000 Tax Allocation Bonds. Staff and refinancing team selected Felise Acosta of the firm of Rosenov, Spavacek Group, Inc. (RSG) to perform the fiscal analysis of the RDA and specifically the San Jacinto Project Area to see what the long range fiscal impact is of the estimated revenues, debt service, pass through and expenditures through the end of the bond issue and life of the agency. The current Bond issue consists of $875,000 in serial bonds paying between 3.60% and 6.10% and term bonds of$3,255,000 at 6.25% (yield of 6.40%) due in 2023. The scheduled debt service over the life of the issue is $9,304,398 including interest. Currently, the optional redemption premium penalty is now down to 1.0%. With the low interest rates and the redemption premium penalty down to 1.0%, the RDA has a window of opportunity to refinance the bonds. The RDA would be able to lower its' borrowing costs and thereby save funds for more Approvals City Manager: 7L{30 Finance Director. Page 1 of 2 RDA projects. Staff currently estimates that the RDA could save over $400,000 over the life of the bonds after paying all expenses. However, the interest rate is increasing slowly and will erode any savings if interest rates continue to increase. Therefore, time is of the essence. Bonds should only be refinanced when it makes economic sense to do so. However, because bond issues can only be refunded once, there needs to be a selection of the best time to refinance a bond issue. To quantify the term "Economic sense" in a straight refunding; as a rule of thumb, bonds should be refinanced, if there is at least a net 3.0% savings. The County of Riverside uses a 5.0% rule of thumb. Staff suggests a benchmark of at least 3.5% in savings (after all fees and expenses) in order to refinance the 1993 RDA Tax Allocation Bonds. Staff previously stated that all retained team members would be retained on a contingent basis subject to the successful issuance of new refunding bonds. This is not correct; the exception would be the engagement of the Fiscal Analysis consultant. The contract cost is not to exceed $25,000. JUSTIFICATION : Opportunity to lower interest costs and save money for the RDA. Fiscal analysis is required in order to view the feasibility of a new issue and such analysis is a required element in order to market the issue with a target BBB rating. BUDGETARYIMPACT: $25,000 cost to the RDA. All fees and expenses are anticipated to be eventually offset by refinancing savings. ATTACHMENTS: Standard Professional Services Agreement Page 2 of 2 RSG INTELLIGENT COMMUNITY DEVELOPMENT Company Profile Vision . . . Fulfilled Taking a project from concept to completion requires. . . 0 Imagination and planning to see the possibilities 0 Experience and commitment to make it happen 0 From the smallest detail, to the most complex problem a We strive to create harmony to create communities At RSG, our approach is a balance of forward thinking and understanding gained from over a quarter of a century's experience. Rosenow Spevacek Group Provides consulting services for public entities and private agencies throughout California and Nevada. Our experienced professionals create customized solutions, emerging from an understanding of each community's unique set of challenges. We specialize in: Redevelopment Planning Real Estate Economics Housing Financing Real Estate Acquisition Economic Development Government Services 0 Contact Information RSG is a Subchapter S Corporation. Five active partners hold shares of the corporation (principals) listed below: Kathleen Rosenow Frank J . Spevacek Felise Acosta John Yonai James C. Simon The Principal responsible for this engagement is Felise Acosta Firm Description Page I RSG INTELLIGENT COMMUNITY DEVELOPMENT I Our corporate contact information is listed below Rosenow Spevacek Group, Inc. (RSG) 309 West 4h Street Santa Ana , CA 92701 Phone: 714-541 -4585 Fax: 714-541 -1175 www.webrsq,com Ms. Acosta's phone extension is 128 and her email address is facosta@webrsg.com. Consulting Services Provided In 1979, five individuals coming from government and the private sector establish RSG and began providing redevelopment/community development, real estate, financing, governmental, and economic development consulting services to a few clients within southern California. Twenty-five years later with a staff of 30 expedenced professionals, we have a current client list of over 129 public agencies and have overseen the adoption of over 125 redevelopment plans. During the firms tenure we have provided redevelopment implementation services for the majority of our clients, participated in over 130 public agency financings, conducted real estate pro forma analyses and assisted in the negotiations of owner participation and disposition and development agreements, acquired properties for numerous agencies and conducted governmental management, incorporation, annexation and reorganizational-right sizing studies. We apply our governmental, finance and real estate economic expertise in most of our assignments. We understand the diverse interests involved in redevelopment planning and finance, from city and county officials to citizens, developers, consultants, technical experts, lawyers, architects, engineers, investment bankers, real estate appraisers and transportation agencies. We have earned a reputation for balancing these diverse interests to move a project forward on a timely basis to its optimum conclusion. Revenue Projections/Fiscal Consulting RSG prepares fiscal consulting reports for a variety of tax increment supported debt structures for clients throughout California and Nevada. We provide tax increment revenue projections that delineate anticipated housing set aside deposits, taxing agency payments, administrative costs, non-housing project funds, debt service coverage and bonding capacity. We develop tax increment pass through models, monitor tax receipts and verify property tax revenues for our client agencies. Our financing work also includes property tax projections for other public agencies, cost revenue model development and fee structure studies. Firm Description Page 2 RSG INTELLIGENT COMMUNITY DEVELOPMENT Plan Adoptions, Amendments, and Mergers RSG brings over two decades of experience adopting, amending, and merging redevelopment plans to implement community development, housing rehabilitation, commercial revitalization, hazardous material remediation, and other programmatic goals. Our approach to redevelopment planning is to provide customized services for each client. For example, in one city we worked as a facilitator between the agency and three project area committees to discuss the implications of a proposed merger and increase communication and trust. For another city, we consulted on an award-winning redevelopment plan adoption and received unanimous community support, just a few years after a prior proposal failed amid citizen protest. For a joint powers redevelopment authority, we completed a redevelopment plan under the military base closure act—covering 15,000 acres, 22,000 parcels, and 4 jurisdictions—within a seven-month period . Other cities have limited staff, and RSG project team members are available to act as an extension of staff—preparing staff reports, talking to property owners, meeting with department heads, and transmitting notices. Project Area Committee and Community Outreach Stakeholder support for redevelopment is more essential now than ever before. RSG can coordinate, participate, or lead community workshops with residents, property owners, and businesses. Implementation and Housing Plans RSG prepares a wide variety of planning documents required by Redevelopment Law, including five-year implementation plans, replacement housing plans, housing compliance plans, annual reports, and relocation plans. Governmental Services RSG conducts a wide range of services related to the operation of government of all sizes. Our services include rightsizing, productivity and performance analysis, policy and procedure evaluation, budget development and analysis, strategic economic planning, interim management services, incorporation, annexation and reorganization and financial impact assessments/nexus studies. RSG's Government Services team has a bottom line: help our clients evolve into a more cost-effective organization that can perform more tasks with fewer resources. Real Estate Economics RSG provides economic, redevelopment, and real estate consulting services to both public agencies and private participants in the community development process. Throughout California, RSG has advised our clients on a variety of real estate projects. Our services include pro forma development and market analysis, project structuring and financing, development agreement negotiation, developer solicitation and economic impact analysis. In total, RSG's real estate economic services have resulted in the development of over 4 million square feet of commercial, industrial, and office uses, and 5,500 affordable and market rate housing units. Formulating innovative solutions, attention to detail and adherence to project schedules are signatures of our service. Firm Description Page 3 RSG INTELLIGENT COMMUNITY DEVELOPMENT Economic Development RSG activity provide services to our client agencies in the area of economic development building a strategy for the future by developing economic development plans and assisting the actual implementation of these plans. In sport for these efforts, we conduct market analysis, financial and other resource reviews, strategic planning, business development and business retention and overall program implementation. Real Estate Acquisition RSG offers full service real estate acquisition, management and representation services. Many real estate transactions have multiple components, and RSG's team has over 20 years of experience managing the pieces and making sure they all come together for a successful project. Services include site assembly management, acquisition document preparation and negotiations, hazardous materials surveys, management plans and removal coordination construction management services, relocation process coordination and condemnation process coordination. Firm Description Page 4 RSG INTELLIGENT COMMUNITY DEVELOPMENT Consultant Team The RSG consultant team would be led by Felise Acosta, Principal and Project Manager, who would oversee all work related to the Fiscal Consultant Report. In this role, she will attend all meetings, act as lead contact, and coordinate all activities with the Agency, County, and State staff. She will also coordinate support staff's data gathering efforts, and oversee all analysis and projection development. Ms. Acosta will be directly responsible for the preparation of the Report. Ms. Acosta's most recent engagements to provide fiscal consultant reports for tax allocation financings include the following Redevelopment Agencies: Bell 2003; Carson 2002 and 2003, the El Monte 2003, Hollister 2003; Loma Linda 2003; Orange Cove 2004 and Palm Desert two financings in 2002 and three financings in 2003. Jose Ometeolt and Fernando Cazares, Analysts and Beverly Wong , Research Assistant will assist Ms. Acosta. Mr. Ometeolt, Cazares and Ms. Wong will assist in data collection, analysis and assist with project coordination. Resumes are enclosed for your perusal. Additional staff may be assigned on an as needed basis. Firm Description Page 5 RSG INTELLIGENT COMMUNITY DEVELOPMENT Felise Acosta Rosenow Spevacek Group = Principal Project Manager for clients requiring services in redevelopment, housing, economic development, finance activities and developer/public sector coordination. Specializes in redevelopment project area implementation and formation, housing and economic development programs, redevelopment and bond financing. Has directed the creation or amendment of project areas for the Cities of Buena Park, Burbank, Carson, Fontana , Palm Desert, Port Hueneme, Poway, Orange, San Bernardino, and the Inland Valley Development Authority (IVDA) for the Norton Air Force Base and the Victor Valley Development Authority for the George Air Force Base. Project implementation experience includes: coordination of affordable housing implementation; Disposition and Development Agreement process for redevelopment agencies; pro forma analysis; coordination of site assembly process required for project implementation; commercial and residential rehabilitation, and local agency financial analysis, interim community development director services, and planning for numerous clients throughout southern California. Project manager for fiscal consulting services in support of over $600 million in tax allocation bonds. Clients include Cities of Bell, Big Bear, Carson, Cudahy, Chino, El Cajon, Hollister, IVDA, Loma Linda, Monterey, Orange Cove, Park, Palm Desert, Port Hueneme, Poway, Rancho Palos Verdes, Redlands, San Bernardino, Sparks (Nevada), Taft, Torrance, and Vista. City of Buena Park = Community Development Officer Directed and managed the activities of the Redevelopment Agency, the City's HCDBG and Economic Development programs supervising a staff of seven, an annual budget of $ 14 million, and two Redevelopment Project Areas totaling over 1 000 acres. Was responsible for Agency's cash flow and preparation as five-year financial implementation plan, directed the Agency bond financing program. Managed numerous site assembly projects. Negotiated with developers for acquisition and development of sites in the project areas, acted as chief staff liaison with Redevelopment Agency Board, Project Area Committee, and Citizens Advisory Committee. Education Bachelor of Arts, Urban Geography, California State University, Long Beach Professional Affiliations National Association of Housing and Redevelopment Officials Southern California Chapter California Association for Local Economic Development Firm Description Page 6 RSG INTELLIGENT COMMUNITY DEVELOPMENT Financing Projects Since 1984, RSG has served as fiscal consultant for over 100 redevelopment agency financings involving approximately $2.5 billion in bonds. In this capacity, RSG staff has interpreted taxing agency agreements, prepared revenue projections, verified property tax delinquencies, researched and evaluated the impact of assessment appeals, authored support material for bond rating agencylinsurance company presentations, and identified the top ten taxpayers. The following presents the portfolio of RSG's overall bond experience: Bell Community Redevelopment Agency 1985 $7,000,000 Tax Allocation Notes 1987 $6,000,000 Tax Allocation Notes 1987 $7,850 ,000 Tax Allocation Refunding Bonds 1991 $9,250,000 Tax Allocation Notes 1994 $ 19,900,000 Tax Allocation Refunding Bonds 2003 $27 ,925,000 Tax Allocation Refunding Bonds Big Bear Lake Improvement Agency 1990 $5,000,000 Revenue Bonds, Series A 1990 $1 ,000,000 Assessment District Bonds Buena Park Redevelopment Agency 1985 $20,000,000 Tax Allocation Notes 1985 $20,000,000 Tax Allocation Refunding Bonds 1985-86$13,700,000 Certificates of Participation California City Redevelopment Agency 1991 $ 9,000,000 Tax Allocation Bonds 1993 $7,000,000 Tax Allocation Bonds 2000 $15,600,000 Tax Allocation Refunding Bonds Camarillo Community Development Commission 1999 $7,900,000 Tax Allocation Bonds City of Carson Redevelopment Agency 1992 $21 ,840,000 Project Area No. 1 Refunding 1993 $32974OwOOO Project Area No. 2 Bonds 1993 $51975j000 Project Area No. 1 Taxable 1993 $ 159000,000 Project Area No. 1 Tax Exempt 1994 $600,000 Project Area No. 3 Tax Allocation Notes 1996 $10,000,000 Project Area No. 3 Tax Allocation Notes 2001 $28,6257000 Project Area No. 1 Tax Allocation Bonds 2003 $3,155,000 Project Area No. 1 Tax Allocation Bonds Financing Project Experience Page 1 RSG INTELLIGENT COMMUNITY DEVELOPMENT Chino Redevelopment Agency 1993 $3,250,000 Tax Allocation Bonds Compton Redevelopment Agency 1987 $39,125,000 Revenue Bonds Coronado Community Development Agency 1990 $11 ,550,000 Tax Allocation Bonds 1992 $30,000,000 Tax Allocation Bonds 1996 $38,847,000 Tax Allocation Refunding Bonds 2000 $ 17,000,000 Tax Allocation Bonds Cudahy Redevelopment Agency 1990 $3,000,000 Tax Allocation Bonds 1991 $2,000,000 Tax Allocation Bonds 1994 Abandoned Tax Allocation Bonds El Cajon Redevelopment Agency 1988-89$23,000,000 Financial Institution Loans 1992 $35,600,000 Tax Allocation Bonds 1992 $14,000,000 Taxable Notes 1997 $35,745,000 Tax Allocation Refunding Bonds 2000 $ 14,000,000 TaxableBonds El Centro Redevelopment Agency 1996 $9,240,000 Tax Allocation Refunding Bonds El Monte Redevelopment Agency 2002 $1 ,430,000 Tax Allocation Notes Fontana Redevelopment Agency 1988 $15,300,000 Tax Allocation Notes Fountain Valley Agency for Community Development 1998 $24,225,000 Tax Allocation Refunding Bonds Industrial Area Redevelopment Project Hercules Redevelopment Agency 2001 $6,500,000 Tax Allocation Bonds Hollister Community Development Agency 2003 $35,000,000 Tax Allocation Bonds Huntington Park Redevelopment Agency 1994 Abandoned Tax Allocation Bonds Financing Project Experience Page 2 RSG INTELLIGENT COMMUNITY DEVELOPMENT Indian Wells Redevelopment Agency 1994 Abandoned Tax Allocation Refunding Bonds Inland Valley Development Agency 1993 $15,000,000 Tax Allocation Bonds - School District 1993 $2510OOtOOO Tax Allocation Notes 1996 Tax Increment Verification — Taxing Agency Pass Through Calculations 1997 $44,485,000 Tax Allocation Bonds 1997-2004 Annual Tax Increment Projections and Taxing Agency Pass-Through Calculations La Palma Community Development Agency 1991 $6,500,000 Tax Allocation Bonds 1993 $5, 100,000 Tax Allocation Refunding Bonds 2001 $6,300,000 Tax Allocation Refunding Bonds La Quinta Redevelopment Agency 1990 $197675,000 Tax Allocation Bond Refunding , PA #1 1991 $8,700,000 Tax Allocation Bonds, PA #1 1992 $5,845tOOO Tax Allocation Bonds, PA #2 1994 $26,665,000 Tax Allocation Refunding Bonds, PA #1 1995 $22�4551000 Housing Tax Allocation Bonds 1996 $9,000,000 Lease Revenue Bond Refunding 1998 $7 ,000,000 Tax Allocation Refunding Bonds, PA #2 1998 $ 15,7601000 Tax Allocation Refunding Bonds, PA #1 1998 $6,750,000 Tax Allocation Refunding Bonds, PA #2 2002 $40o0001000 Tax Allocation Bonds, PA #1 Lemon Grove Community Development Agency 1992 $8,035,000 Tax Allocation Bonds Loma Linda Redevelopment Agency 1994 $4,405,000 Tax Allocation Refunding Bonds 2003 $ 12,610,000 Tax Allocation Refunding Bonds Long Beach Redevelopment Agency $50,000,000 Tax Allocation Bonds - Tax Increment Certificate for Bond Escrowed Funds Release Maywood Redevelopment Agency 1994 Abandoned Tax Allocation Refunding Bonds Financing Project Experience Page 3 RSG INTELLIGENT COMMUNITY DEVELOPMENT Monterey Park Redevelopment Agency 1992 $22,055,000 Tax Allocation Bonds - Refunding 1992 $4,720,000 Subordinate Tax Allocation Refunding Ontario Redevelopment Agency 1992 $61 , 191 ,000 Revenue Bonds 1993 $90,000,000 Revenue Bonds 1993 $45,705,000 Tax Allocation Bonds Orange Redevelopment Agency 1990 $7,000,000 Tax Allocation Notes, Tustin Street P.A. 1992 $7,600,000 Subordinated Taxable Refunding Notes, Tustin Street PA 1988 $10,000,000 Tax Allocation Notes, Southwest P.A. 1993 $32,750,000 Tax Allocation Refunding Bonds, Southwest 1990 $4,000,000 Tax Allocation Notes, Northwest P.A. 1993 $27,000,000 Taxable and Tax Exempt Refunding Bonds, (Combined) Northwest P.A. Orange County Comm. Development Agency 1987 $20,000,000 Tax Allocation Bonds 1993 $57,965,000 Tax Allocation Refunding Bonds 2001 $7657000 Tax Allocation Refunding Bonds 2001 $261160�000 Tax Allocation Refunding Bonds Orange County Fire Authority Annual 1997 through 2004 (10-year) projection of property tax revenues (11 individual cities and county unincorporated territory) Orange Cove Redevelopment Agency 2004 $6,230,000 Tax Allocation Bonds Palm Desert Redevelopment Agency 1992 $100,000,000 Tax Allocation Revenue Refunding Bonds, Project Area No. 1 1992 $ 17,505,000 Tax Allocation Revenue Refunding Bonds, Project Area No. 2 1993 Verification of Increment of Project Area No. 1 - Escrow Release 1995 $24,025,000 Tax Allocation Bonds, Project Area No. 1 1995 $4,090,000 Tax Allocation Bonds, Project Area No. 2 1995 $6,305,000 Tax Allocation Refunding Bonds, Project Area No. 1 (Added Area Only - Housing Fund) 1996 $7,010,000 Lease Revenue Bonds - Project Area No. 1 1997 $77,945,000 Tax Allocation Refunding Bonds - Project No. 1 Financing Project Experience Page 4 RSG INTELLIGENT COMMUNITY DEVELOPMENT 1998 $ 11 ,020,000 Tax Allocation Refunding Bonds - Project No. 4 1998 $481770�000 Tax Allocation Refunding Bonds - Housing Fund 2001 $22,070,000 Refunding Bonds - Project No. 1 2001 $ 15,6050000 Tax Allocation Bonds - Project No. 4 2002 $17o310,000 Tax Allocation Refunding Bonds, PA 2 2002 $12,1009000 Tax Allocation Housing Bond 2003 $191000,000 Tax Allocation Bonds-Project Area No.1 2003 Tax Allocation Revenue Verification for County of Riverside-City of Palm Desert Financing Authority for Revenue Bond financing of Multi-jurisdictional Animal Shelter Pinole Redevelopment Agency 1999 $ 11 , 135,000 Tax Allocation Bonds Pomona Redevelopment Agency 1990 $20,000,000 Revenue Bonds, Series E 1990 $3,930,000 Tax Allocation Refunding Bonds Port Hueneme Redevelopment Agency 2004 $129210,000 Subordinate Tax Allocation Refunding Bonds Poway Redevelopment Agency 1993 $104,000,000 Tax Allocation Refunding Bonds City of Redlands 1994 $20,275,000 Subordinate Tax Allocation Refunding Bonds 1998 $31 ,000,000 Tax Allocation Refunding Bonds Ridgecrest Redevelopment Agency 1988 $ 12,845,000 Certificates of Participation 1990 $5,835,000 Tax Allocation Bonds 1991 $4,790,000 Tax Allocation Bonds 1999 $7,880,000 Refunding Tax Allocation Bonds 2002 TBD Refunding Tax Allocation Bonds Riverside Redevelopment Agency 1999 $1710259000 Tax Allocation Bonds, Series A University Corridor/Sycamore Canyon Merged Redevelopment Project 1999 K055,000 Tax Allocation Bonds, Series B University Corridor/Sycamore Canyon Merged Redevelopment Project 1999 $20,3957000 Tax Allocation Bonds, Casa Blanca Project Financing Project Experience Page 5 RSG INTELLIGENT COMMUNITY DEVELOPMENT County of Riverside 1990 $18,020,000 Tax Allocation Bonds, Series A. BT C, D & E 1991 $ 11 ,415,000 Tax Allocation Bonds, Series A Rohnert Park Redevelopment Agency 1999 $ 11 ,937,000 Tax Allocation Bonds 2001 $8,200,000 Tax Allocation Refunding Bonds San Bernardino Joint Powers Financing Agency 1990 $29,450,000 Tax Allocation Bonds, 6 issues completed and sold 1991 Tax Increment Verification Central City, State College, and Southeast Industrial Park Project Areas 1994 $ 10,000,000 Tax Allocation Bonds-State College Project 1998 $27,590,000 Tax Allocation Refunding Bonds, Central City Merged County of San Diego Redevelopment Agency Annual 1995 Revenue Bond Debt Service Certification Gillespie Field Redevelopment Project San Marcos Redevelopment Agency 1984 $6,000,000 Tax Allocation Notes 1992 $42,910,000 Tax Allocation Bonds 1993 $47 �4251000 Project Areas 1 , 29 & 3 Refunding Bonds 1996 $7,455,000 Project Area 1 Tax Allocation Bonds 1997 $9,465,000 Series A Housing Tax Allocation Bonds 1998 $7,490,000 Housing Tax Allocation Bonds 1999 $9,315,000 Senior Tax Allocation Bonds — Project Area 1 1999 $5, 165,000 Subordinate Tax Allocation Bonds — Project Area 1 2000 $31 t970,000 Revenue Bonds — Project Area 3 Santa Ana Community Development Agency 1994 Abandoned Central City Refunding Tax Allocation Bonds 1998 $65,330,000 Refunding Revenue Bonds, Series A 1998 $ 119485,000 Refunding Revenue Bonds, Series B 1998 $81100,000 Refunding Revenue Bonds, Series C Sparks (Nevada) Redevelopment Agency 1994 $36,000,000 Tax Allocation Bonds 1995 $107000t000 City of Sparks General Obligation Limited Tax Revenue Bonds 1996 $8,150,000 Tax Allocation Bond Anticipation Notes 2000 $50,000,000 Tax Allocation Refunding Bonds - P.A. 1 Financing Project Experience Page 6 RSG INTELLIGENT COMMUNITY DEVELOPMENT 2002 $10,000,000 Tax Allocation Notes - P.A. 2 2003 $5,000,000 Tax Allocation Notes - P.A. 2 Taft Public Finance Authority 1993 $4,590,000 Revenue Bonds Torrance Redevelopment Agency 1992 $ 9,870,000 Tax Allocation Refunding Bonds 1994 Complete Verification of Tax Increment Escrow Release Victor Valley Economic Development Authority 2000 Pending Tax Allocation Bonds Victorville Redevelopment Agency 1991 $10,600,000 Tax Allocation Bonds 1994 $10,450,000 Tax Allocation Refunding Bonds, Series A 1994 $1 ,010,000 Taxable Tax Allocation Bonds, Series B 1994 $4,940,000 Subordinate Tax Allocation Bonds, Series C Vista Community Development Agency 1991 $26,000,000 Revenue Bonds 1992 $44,500,000 Tax Allocation Notes 1993 Complete Verification of Tax Increment Escrow Release Whittier Redevelopment Agency 1990 $5,000,000 Tax Allocation Bonds, Series A Financing Project Experience Page 7 RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. T 714 5414585 309 WEST 47H STREET F 714 5411175 SANTA ANA, CALIFORNIA E INFO &WEURS&COM 92701-4502 WEBRSG.COM Via E-Mail and FimtmCdass Mail bsimon@sarijacinto.ca.us February 7, 2005 Mr. Bernard Simon, Finance Director CITY OF SAN JACINTO REDEVELOPMENT AGENCY 248 E Main Street San Jacinto, CA 92583 PROPOSAL FOR FISCAL CONSULTANT SERVICES SAN JACINTO REDEVELOPMENT AGENCY Dear Mr. Simon: Rosenow Spevacek Group, Inc. (mRSGJ is pleased to present this Proposal to provide fiscal consultant services to the City of San Jacinto Redevelopment Agency CAgencyl. It is our understanding that the Agency desires preparation of fiscal consultant report CReportw) to verify tax increment revenues for its San Jacinto Project Area rProject Area'). The purpose of the Reports are to verify expected and future revenues to allow the Agency to refinance its existing Bonds to enable the Agency to further implement redevelopment within the Project Area. THE FIRM RSG specializes in providing redevelopment and financial consulting services to both public agencies and private participants in the community development process. Our services include redevelopment project adoptionlamendments; project implementation and redevelopment agency staffing; fiscal consultant services; economic development programs; and affordable housing program development and administration. RSG's service delivery is enhanced by our aggressive integration of computer applications into project management, scheduling, data storage, and mapping activities. Formulation of innovative solutions, attention to detail, and adherence to schedules are the signatures of our service. Specific to fiscal consulting work, RSG has had extensive experience in providing fiscal and tax consultant services for cities and redevelopment agencies. Since 1984, RSG staff has served as fiscal consultant for over 125 redevelopment financings, involving the issuance of approximately $2.5 billion in bonds- REDEVELOPMENT PLANNING REAL ESTATE ECONOMICS MOUSING FINANCING REAL ESTATE ACOUISITION ECONOMIC DEVELOPMENT GOVERNMENT SERVICES Mr. Bernard Simon, Finance Director SAN JACINTO REDEVELOPMENT AGENCY February 7, 2005 Page 2 SCOPE OF SERVICE The following services vAll be provided in preparation of the Fiscal Consultant Report for the San Jacinto Project Area for inclusion in the Financing's Official Statement. 1 . By accessing the Riverside County Assessoes 2004-05 equalized assessment roll information; the database of the current local secured assessment valuations on a tax rate arealparc&by-pareel basis will be reviewed. 2. Wity assessments and revenue verifications will be provided based on available information at the County and State level. 3. Historical assessed valuation and tax revenue data for the Project Area will be collected, tabulated and presented in table form. 4. The effect of any Redevelopment Plan limitations or any cooperative-pass through agreements on tax increment will be ascertained and calculated. A summary of any such agreements will be included in the Report. 5. Property resale's which took place from July 1 , 2004 through January 31 , 2005 will be researched and increased assessed value from such sales activity will be documented and projected as increases in assessment value for the appropriate roll year. 6. Tax rate information regarding percentage share allocations to each taxing agency will be researched and identified for both the general levy and the Project Area's overrides. 7. Based upon information available from the County Auditor Controller, delinquencies rates for both Project Area will be researched and presented. 8. The 2004-05 top ten secured taxpayers in each Project Area will be documented for underwriting purposes. 9. Appeals information will also be researched through the Riverside County Assessor's Office and presented in the Report. 10. Based upon the information collected and noted above, tax increment revenue projections for the Project Area will be developed which depict gross and not revenue and housing set aside amounts as well as amounts to be allocated to the other taxing agencies pursuant to cooperative agreements. Mr. Bernard Simon, Finance Director SAN JACINTO REDEVELOPMENT AGENCY February 7, 2005 Page 3 TIMING RSG's experience, knowledge, and database related to the Project Areas will allow RSG to provide the Agency with an extensive and actuate Report. Additionally, because of our existing database, we will be able to provide the Report in shortest time possible. Once given the authorization to proceed, we believe that we can provide a draft Report within five (5) weeks of receipt of authorization to proceed, with a final Report completed within fourteen (14) working days from receipt of the last financing team's comment. EXPERIENCE RSG has provided fiscal consultant services for over 125 redevelopment agency financings. These financings included the following: 0 $1 million to over $100 million in size; 0 Initial offerings and refundings/refinancings; 0 Issues including escrow components; 0 Short-term notes and long-term take-out financings; and 0 Exclusive tax increment pledges, and other pledges of revenue sources with tax increment providing an enhanced security pledge. As an integral member of the financing team, RSG has worked with various underwriters, bond counsels, financial consultants and credit institutions. PROJECT TEAM Felise Acosta, Piincipavpro*ect Manager Ms. Acosta will assume the role of Project Manager for this engagement. In this role, Ms. Acosta will oversee all aspects of the engagement. She will attend all meetings, act as lead contact, and coordinate all activities with the City, Agency, financing team, rating agencies, and insurers. She will also coordinate support staffs data gathering efforts, and oversee and conduct most analysis, projection development and development of Report. Mr. Fernando Cazares, Ana Mr. Cazares will assist with data gathering and analysis, document preparation, assembly of required financial information and assist in development of the projection model. FEE QUOTE RSG proposes to conduct the work required, based upon utilization of the 2004-05 assessment roH for a not-to-exceed total fee of $22,000. This fee is inclusive of all normal incidental expenses associated with preparation of the Report. Such expenses include copying, mailing costs, fax charges, Federal Express, and normal travel within Southern California etc. The fixed fee does not include any extraordinary expenses related to travel outside of the Southern California to meet with insurers or rating agencies. Such expenses would be incurred only after receipt of authorization by the Agency and would be billed as a direct reimbursable. Mr. Bernard Simon, Finance Director SAN JACINTO REDEVELOPMENT AGENCY February 7, 2005 Page 4 RSG is willing to postpone payment of fees until the time of bond closing; however, the fee may not be contingent upon the sale of bonds, and If the sale is delayed beyond ninety (90) days from the presentation of the final Report, RSG may request payment. If requested, the Agency agrees to provide payment. RSG's 2005 hourly rate structure for consultant services is as follows: Principal/Director $170 Sr. Associate $140 Associate $120 Senior Analyst $110 Analyst $ 90 Research Assistant $ 80 Word Processor/Graphic Artist $ 55 Clerical $ 45 Reimbursable Expenses Cost plus 10% Contact Person. The person authorized to represent RSG on matters related to this is Felise Acosta. Ms. Acosta can be reached at our Santa Ana office at 714-541 -4585 ext. 128 or by email at facosta Ca)webrsg.cDm. We appreciate the opportunity to submit our proposal to the San Jacinto Redevelopment Agency and we look forward to working on this important refinancing. If this proposal is acceptable as written, please sign where indicated and return to our office at your earliest convenience. Sincerely, ROSENOW SPEVACEK GROUP, INC. APPROVED AND AUTHORIZED: Signed: Felise Acosta Principal Tdie: Date: CITY OF SAN JACINTO PROFESSIONAL SERVICES AGREEMENT 1 . PARTIES AND DATE, This Agreement is made and entered into this . day of 12005 by and between the City of San Jacinto, a municipal organization organized under the laws of the State of California with its principal place of business at 201 East Main Street, San Jacinto, California 92583 ("City") and ROSENOW SPEVACEK GROUP, a Sub Chapter S California Corporation, with its principal place of business at 309 West 4th Street, Santa Ana, California 92701 ("Consultant"). City and Consultant are sometimes individually referred to as "Party" and collectively as "Parties." 2a RECITALS. 2A Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional redevelopment and fiscal consulting services to public clients, is incorporated in the State of California, and is familiar with the plans of City. 2.2 Project. City desires to engage Consultant to render such services for the San Jacinto Redevelopment Agency to provide fiscal consultant services required to prepare documentation necessary to refund the Agency's existing tax allocation bonds for the San Jacinto Redevelopment Project Area ("Project") as set forth in this Agreement. 3. TERMS. 3A Scope of Services and Term, 3.1 .1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional services for the San Jacinto Redevelopment Agency to provide fiscal consultant services required to prepare documentation necessary to refund the Agency's existing tax allocation bonds for the San Jacinto Redevelopment Project Area consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with , this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3,11 .2 Term. The term of this Agreement shall be from February 7, 2005 until completion of the Fiscal Consultant Report or June 30, 2005, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines set by City staff. RVPUB\DKG\621684 3,2 Responsibilities of Consultant. 3.2.1 Control and Payment of Subordinates; Independent Contractor, The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultants exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services underthis Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference ("Schedule"). Consultant represents and warrants that it has the professional and technical personnel required to perform the Services in conformance with such Schedule. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance time lines to meet the Schedule. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project at the request of the City. 3.2.5 City's Representative. The City hereby designates its City Manager, or his/her designee, to act as its representative for the performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Consultant shall not accept direction or orders from any person other than the City's Represenbtive or his/her designee. 3.2.6 ConsultanVs Representative. Consultant hereby designates Felise Acosta, Principal, or her John Yonai, designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff RVPU]30KG%621684 in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times. 3.2,8 Standard of Care; Performance of Employees, Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and warrants that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents and warrants that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City business license, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessaryto correct errors oromissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. RVPUBOKG\621684 w3� 3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, agents andvolunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.10 Insurance. 3210,11 Time for Compliance, Consultant shall not commence Services under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 3,2,10,2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to propertywhich may arise from or in connection with the performance of this Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage: Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1 ) General Liability. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 ); (2) Automobile Liability. Insurance Services Office Business Auto Coverage form number CA 0001 , code 1 (any auto); and (3) Workers' Compensation and Employers Liability. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1 ) General Liability. $1 ,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used , either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shallbe twice the required occurrence limit; (2) Automobile Liability: $1 ,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation andEmployer's Liability: Workers' Compensation limits as required bythe Labor Code of the State of California. Employer's Liability limits of $1 ,000, 000 per accident for bodily injury or disease. 3,2.10.3 Professional Liability. Consultant shall procure and maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than approved by the City's Risk Manager, and shall be endorsed to include contractual liability. 32,10A Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or RVPU]30KGk621684 4� approved by the City to add the following provisions to the insurance policies: General Liability. The general liability policy shall be endorsed to state that: (1 ) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insured with respect to the Services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such Services; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it in any way. (B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1 ) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it in any way. (C) Workers' Compensation and Employer's Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid underthe terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (1 ) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers. 3.2.10.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. 12AOX Deductibles and SelfwInsurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (") the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (B) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII , licensed to do business in California, and satisfactory to the City. RVPUB\DK&621684 3,2,10,8 Verification of Coverage. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before performance of Services commences. The City reseRes the right to require complete, certified copies of all required insurance policies, at any time. 3.2.11 Safety. Consultant shall execute and perform its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (") adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities forthe proper inspection and maintenance of all safety measures. 3.3 Fees and Payments. 3.3.1 Compensation, Consultant shall receive compensation, including authorized cost and expense reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. In no event shall the total compensation, including authorized cost and expense reimbursements, exceed Twenty-five Thousand and no/1 00 Dollars ($25,000.00) without written approval of City's Representative. Extra Work, as defined below, may be authorized as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Consultant shall submit to City a monthly itemized statement which indicates the portion of Services work completed and hours of work rendered by Consultant. The statement shall describe the portion of Services and hours of work rendered by Consultant since the initial commencement date, orsince the start of subsequent billing periods, as appropriate, through the date of the statement. City shall, within forty-five (45) days of receiving such statement, review the statementand pay all approved charges thereon. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform "Extra Work". As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform , nor be compensated for, Extra Work without written authorization from City's Representative. 3.3.5 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seg. , as well as California Code of Regulations, Title 8, Section 16000 et seg. ("Prevailing Wage Laws") , which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or RVPUB\DKG621684 11maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1 000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per them wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of perdiem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultants principal place of business and at the Project site. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, agents and volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3A Accounting Records. 3.4.1 Maintenance and Inspection, Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3,5 General Provisions. 3.5,11 Termination of Agreement. 16,11 ,11 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. 1&112 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultantto provide all finished or unfinished Documents & Data, as defined below, and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 15,13 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may proure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective Parties may provide in writing for this purpose: Consultant: ROSENOW SPEVACEK GROUP, INC. 309 West 4th Street Santa Ana, California 92701 Attn: Felise Acosta Principal RVPUBDKG\621694 City: City of San Jacinto 201 East Main Street San Jacinto, CA 92583 Attn: Bernie Simon Finance Director Such notice shall be deemed made when personally delivered or when mailed Jorty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.3 Ownership of Materials and Confidentiality. 3,53,11 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that an)such use not within the purposes intended by this Agreement shall be at City's sole risk. 15,12 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known , to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this AgreemEnt. 3.5,5 Attorneys' Fees. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.6 Indemnification, Consultant shall defend, indemnify and hold the City, its RVPUBOKG�621684 m8� directors, officials, officers, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any actual or alleged acts, omissions or willful misconduct of Consultant, its officials, officers, employees, agents, consultants and subcontractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all consequential damages and aftorneys' fees, expert witness fees, and other related costs and expenses. Consultant shall defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City and/or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse the City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents and volunteers. 3,5,7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, letters, memoranda or agreements. This Agreement may only be modified by a writing signed by both Parties. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.5.9 Time of Essence, Time is of the essence for each and every provision of this Agreement. 3,5.10 City's Right to Employ Other Consultants. City reserves the right to employ other consultants in connection with this Project. 3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties, and shall not be assigned by Consultant without the prior written consent of the City, which may be given orwithheld in the City's sole and absolute discretion. 3,5.12 Assignment or Transfer, Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City, which may be given or withheld in the City's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3,5.13 Construction; References; Captions, Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Unless otherwise specified in this Agreement, any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, consultants and subcontractors of Consultant except as otherwise specified in this Agreement. All references to City include its directors, officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, RVPU]3\DKG\621684 augment, or describe the scope, content, or intent of this Agreement. 3.5.14 Amendment; Modification, No waiver, supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom , estoppel, or otherwise. 3,5,16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3e5al 7 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, otherthan a bona fide employee working solely for Consultant, to solicitor secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3,5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employerand it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise Program , Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3,5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3,5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. RVPUWDKG\621684 _ 10- EXHIBIT "B" SCHEDULE OF SERVICES The term of this Agreement shall be from February 7, 2005 to June 30, 2005, unless earlier terminated as provided in this Agreement. EITHER: Consultant shall completed all Services within the term of this Agreement and shall meet all other established schedules and/or deadlines set by City staff. RVPU]3\DKG\621684 B-1 EXHIBIT INCIN COMPENSATION Consultant shall receive compensation, including authorized cost and expense reimbursement, for all Services rendered under this Agreement at the rates set forth below. In no event shall total compensation, including authorized cost and expense reimbursements, exceed Twenty-five Thousand Dollars ($25,000.00) without written approval of City's Representative. Based upon utilization of the 2004-05 assessment roll for a not-to-exceed total fee of $22,000. This fee is inclusive of all normal incidental expenses associated with preparation of the Report. Such expenses include copying, mailing costs, fax charges, Federal Express, and normal travel within Southern California etc. The fixed fee does not include any extraordinary expenses related to travel outside of the Southern California to meet with insurers or rating agencies. Such expenses would be incurred only after receipt of authorization by the Agency and would be billed as a direct reimbursable. RSG is willing to postpone payment of fees until the time of bond closing; however, the fee may not be contingent upon the sale of bonds, and if the sale is delayed beyondninety (90) days from the presentation of the final Report, RSG may request payment. If requested, the Agency agrees to provide payment. RSG's 2005 hourly rate structure for consultant services is as follows: Principal/Director $170 Sr. Associate $140 Associate $120 Senior Analyst $110 Analyst $ 90 Research Assistant $ 80 Word Processor/Graphic Artist $ 55 Clerical $ 45 Reimbursable Expenses Cost plus 10% RVPU]30KG\621684 C-1 3,6 Subcontracting. 3.6.1 Prior Approval Required. Consultant shall not subcontract any portionof the Services required by this Agreement, except as expressly stated herein, without prior written approval of the City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. [Signatures on following page] RVPU]3\DKG\621684 - 11 - SIGNATURE PAGE TO CITY OF SAN JACINTO PROFESSIONAL SERVICES AGREEMENT CITY OF SAN JACINTO ROSENOW SPEVACEK GROUP, INC. "CITY" "CONSULTANT" By: By: Peter A. Cosentini Felise Acosta City Manager Its: Vice President Attest: Dorothy L. Chouinard, City Clerk Approved as to Form: City Attorney Best Best & Krieger LLP RVPUBOKG 621684 -12- EXHIBIT 'BAN' SCOPE OF SERVICES The Services to be performed by Consultant for the Project pursuant to this Agreement shall include but not be limited to the following specific tasks: The following services will be provided in preparation of the Fiscal Consultant Report for the San Jacinto Project Area for inclusion in the Financing's Official Statement. 1 . By accessing the Riverside County Assessor's 2004-05 equalized assessment roll information; the database of the current local secured assessment valuations on a tax rate area/parcel-by-parcel basis will be reviewed. 2. Utility assessments and revenue verifications will be provided based on available information at the County and State level. 3. Historical assessed valuation and tax revenue data for the Project Area will be collected, tabulated and presented in table form. 4. The effect of any Redevelopment Plan limitations or any cooperative-pass through agreements on tax increment will be ascertained and calculated. A summary of any such agreements will be included in the Report. 5. Property resale's which took place from July 1 , 2004 through January 31 , 2005 will be researched and increased assessed value from such sales activity will be documented and projected as increases in assessment value for the appropriate roll year. 6. Tax rate information regarding percentage share allocations toeach taxing agency will be researched and identified for both the general levy and the Project Are is overrides. 7. Based upon information available from the County Auditor Controller, delinquencies rates for both Project Area will be researched and presented. 8. The 2004-05 top ten secured taxpayers in each Project Area will be documented for underwriting purposes. 9. Appeals informationwill also be researched through the Riverside CountyAssessor's Office and presented in the Report. 10. Based upon the information collected and noted above, tax increment revenue projections for the Project Area will be developed which depict gross and net revenue and housing set aside amounts as well as amounts to be allocated to the other taxing agencies pursuant to cooperative agreements. RVPUB\DKG\621684 A- 1 EXHIBIT 1219" SCHEDULE OF SERVICES The term of this Agreement shall be from February 7, 2005 to June 30, 2005, unless earlier terminated as provided in this Agreement. EITHER: Consultant shall completed all Services within the term of this Agreement and shall meet all other established schedules and/or deadlines set by City staff. RVPUB\DKG\621684 B-1 AGENDA ITEM 5� April 07, 2005 TO: Honorable Chairperson and Members of Agency Board FROM: Steven G. Pasarow, Redevelopment Operations Manager P SUBJECT: Enhanced Senior Home Repair Grant Program RECOMMENDATION: Approve the Enhanced Senior Home Repair Grant Program, authorize a transfer of$17,000 from the Unallocated Redevelopment Agency Low and Moderate Income Housing Fund to cover startup costs and provide funds for initial grants and authorize staff to work with the United Way to develop an Enhanced Senior Home Repair Program for low-income seniors. BACKGROUND: The City of San Jacinto currently provides funding through its Community Development Block Grant Program for minor home repairs for income qualified seniors 62 years and over. The Senior Home Repair Program is managed by the United Way/Valley Service Connection and is limited to qualified low-income seniors who own and reside in their own home. The maximum eligible amount of funding per address is currently $500. This program not only allows repairs on conventional homes, but also includes mobile homes which comprise approximately 85% of the repair requests. The City's Redevelopment funded Home Rehabilitation Program provides loans up to $30,000 to single family homeowners but does not allow rehabilitation of mobile homes. Thus a large segment of the low-income senior community is not covered by the Agency funded Home Rehabilitation Program. The United Way has identified a need for an enhanced program for larger repairs including roof replacement, electrical and plumbing repairs, needed by senior homeowners, but which are not covered under the existing program. To address this need, the United Way has developed the Enhanced Senior Home Repair Program. This new program will fund more extensive repairs that range from $500 to $3,000 Approvals 'J City Manager: � N Finance Director: Page f of 3 Under the Enhanced Program, seniors meeting the age and income guidelines for the current Valley Service Connection program will become eligible for one- time only repairs costing $501 up to a maximum for $3, 000 per address. All repairs under $500 would continue to be covered under the Valley Service Connection Minor Home Repair Program and would include both conventional and mobile homes. The United Way will manage the day to day operation of the Enhanced Program. The Program Director will review all applications for eligibility and compliance with Program requirements. The Program Director would also make the determination as to which repairs or replacements should be allowed to qualify under this program, including building code and health and safety code violations. Building permits, if required would be obtained by participating contractors. The exact number of Enhanced Repairs projects will be determined by the number of homes participating and those that require the maximum amount of funding. Repairs may include repair or replacement of mobile home roofs, heating and ventilation equipment, leveling of homes, plumbing, flooring, etc. Repairs made under the Enhanced program would be billed to the Redevelopment Agency, approved by the Redevelopment Operations Manager and paid out of the funds allocated for this program. Qualifying citizens would be seniors aged 62 and over and disabled persons. The applicants would need to be able to show proof of ownership of their conventional home or mobile home however they would not be required to own the ground beneath their mobile home. Annual income would not exceed the maximum amount allowed under the Valley Service Connection program for low- income persons (currently $11 ,640 and increasing by $3,975 for each additional member of the household beyond the applicant). Income amounts may increase on an annual basis according to HUD and requirements and community needs. Currently, the Valley Service Connection Program allows repairs to homes outside of the San Jacinto City boundary due to the requirements of the CDBG program. The Enhanced Program will be available only to City of San Jacinto homeowners. JUSTIFICATION : The City/Redevelopment Agency currently provides funding for several housing programs. Community Development Block Grant funds are used for the United Way/Valley Service Connection Senior Home Repair Program for minor repairs. Redevelopment Agency Housing Set-Aside funds are used for the Housing Rehabilitation Program which provides grants up to $30,000 for rehabilitation of single-family owner-occupied homes. Page 2 of 3 The United Way has indicated, based upon the services that they provide, that there is a need for enhanced repairs in the range of $500 to $3000 for low- income seniors and handicapped homeowners (conventional and mobile homes). To address this need the United Way has proposed the Enhanced Senior Home Repair Program. The Agency's Low and Moderate Income Housing Set-aside funds can be used to fund this new program. BUDGETARYIMPACT: The Agency has unallocated Low and Moderate-Income Housing Set-aside funds based upon the FY 2004-05 Budget. These funds can be utilized to fund the proposed Enhanced Senior Home Repair Program without reducing funding from existing programs. ATTACHMENTS: Valley Service Connection Flyer Page 3 of 3 seftlOrs Do you need repairs on your home but cannot af ford the high costO Valley Service Connection may be able to help , You may be eligible for up to $ '500t in home repairs if you own your own home and live within the city limits of San Jacinto . a 9 9 This is a f ree service to qualifying seniors . Qualifying seniors are . Age 62 or better a Low income ($ 11 �640/yr. single, $ 15, (P(S/yr. married) Homeowners A Program of A�ai CO 6"i I ted NO www.ccuw.org For Jit Application and Alorc hijormation Call k951) 9294173