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HomeMy WebLinkAboutRDA AG PKT 2002-10-28 #B I AGENDA REPORT DATE: October 28, 2002 TO: Chairperson and Members of the Redevelopment Agency THRU: John B. Bahorski, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: CONSIDERATION OF CONSULTANT SERVICES, PHASE H — DISSOLUTION OF REDEVELOPMENT AGENCY SUMMARY OF REQUEST: Agency determination regarding proceeding with consideration of dissolution. If the Agency determines to proceed, the Agency should: ❑ Select preferred appraisal firm; ❑ Authorize the Executive Director to negotiate and execute the appropriate contracts in accordance with the proposals of the selected consultants; ❑ Adopt Resolution No. Q -2) , A Resolution of the Redevelopment Agency of the City of Seal Beach Authorizing a Budget Amendment, No RDA 03 -01, for Consultant Services in Phase II — Dissolution of Redevelopment Agency; and ❑ Adopt Resolution No.0 .- f , A Resolution of the Redevelopment Agency of the City of Seal Beach Accepting a Loan from the City of Seal Beach in the Amount of $ 95,000.00. BACKGROUND: On April 22, 2002, the Agency directed staff to request proposals for the preparation of a report discussing the impacts arising from the potential dissolution of the Redevelopment Agency. On May 28, 2002 the Agency retained Keyser Marston Associates, Inc. (KMA) to prepare a report regarding the dissolution process. That report was considered by the Agency on September 23, and the Agency directed staff to proceed to determine additional costs to resolve the outstanding issues. Staff has obtained the following cost estimates based on the Agency direction of September 23, 2002: Agenda Item 3 C: \Documents and Settings \LWhittenberg\My Documents \RDA \Dissolution of Agency, Phase II.RDA Staff Report.doc \LW\I0 -24 -02 Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ❑ Appraisal of Agency owned and leased properties: Staff has received proposals from two firms to conduct appraisals of the Agency -owned and optioned properties within the City. Please refer to Attachments 1 and 2, respectively for the proposals of R. P. Laurain & Associates and Donahue & Company, Inc. Cost Proposal: Fixed fee, including expenses, ranging from $9,700.00 to • $32,850.00. ❑ KMA Phase II Agency Dissolution Services: KMA and Murphy & Davis, LLP has submitted a proposal to provide a financial feasibility analysis that will present a methodology and timing for satisfying the existing indebtedness obligations of the Agency and subsequent termination of the Redevelopment Plan. Please refer to Attachment 3 for a copy of the proposal. Cost Proposal: Fixed fee, including expenses of $14,500.00. ❑ KMA Agency Dissolution Coordination Services: KMA has submitted a proposal to provide project coordination services to the Agency to include discussions with the County of Orange Chief Executive Office, the County outside bond counsel, and outside Agency bond counsel to determine the legal feasibility of permitting the County to assume and administer future debt service obligations for the Agency's existing tax allocation bonds. Please refer to Attachment 4 for a copy of the proposal. Cost Proposal: Fixed fee, including expenses of $9,000.00. Uncertain as to Agency bond counsel costs, estimated between $7,500.00 and $12,500.00. ❑ County of Orange Agency Council Opinion: As of October 23, KMA is awaiting word from the Orange County Executive Office regarding the City's cost to reimburse the County for its outside legal counsel expenses to review to possibility of the County assuming the Agency debt and receiving the tax increment revenues and using those funds for the necessary debt retirement and housing set -aside responsibilities of the Agency. Cost Proposal: Uncertain, estimated between $7,500 and $12,500.00. ❑ Additional Staf'and City Attorney Expenses: If the Agency were to continue to pursue this matter, additional staff and City Attorney time will need to be allocated to this matter. At this time it is uncertain as to the amount of time that may be required to oversee the above discussed consultant work products and prepare additional information related to this effort. Cost Proposal: Uncertain, estimated between $7,500 and $12,500.00. Summary of Anticipated Costs to Complete Phase II Work Program: • Dissolution of Agency, Phase I I.RDA Staff Report 2 I Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 Provided below is a summary of the various costs identified above: Phase II Agency Dissolution Study — Low High Cost Cost Services to be Provided Estimate Estimate Appraisal of Agency owned and leased properties $ 9,700 $ 32,850 KMA Phase II Agency Dissolution Services $ 14,500 $ 14,500 KMA Agency Dissolution Coordination Services $ 9,000 $ 9,000 Agency Bond Counsel Services $ 7,500 $ 12,500 County of Orange Agency Council Opinion $ 7,500 $ 12,500 Additional Staff and City Attorney Expenses $ 7.500 $ 12.500 Total Estimated Costs $ 55,700 $ 93,850 If the Agency determines to proceed with consideration of dissolution, the Agency should determine which appraisal firm would be appropriate to provide the requested appraisals for future Agency consideration, and authorize the Executive Director to negotiate and execute the appropriate contracts in accordance with the proposals of the various consultant firms discussed above. Requested Budget Amendment: If the Agency determines to proceed with consideration of dissolution it will be necessary for the Agency to authorize a budget amendment for the unanticipated consultant expense. Funds would be available, upon authorization by the City Council of the above - discussed loan to the Agency, in the Redevelopment Agency Fund Balance, Account Number 063 - 000 -30420 and will be spent out of the Redevelopment Agency contract professional services account. Staff has prepared the appropriate resolution and it is provided as Attachment 5. The resolution has been prepared to reflect the maximum proposal amount under consideration, assuming the Agency determines to proceed to the stage of formal public hearings and dissolution of the Redevelopment Agency. Acceptance and Recordation of Loan Agreement with the City: If the Agency determines to proceed with consideration of dissolution it will be necessary - for the City to loan funds to the Agency for the professional services discussed above. The Agency has insufficient un- obligated funds to bear the expense of these services. Staff has prepared the appropriate resolution and it is provided as Attachment 6. The resolution has been prepared to reflect the maximum loan amount, proposed at $95,000, to cover the above - discussed expenses, assuming the Agency determines to proceed to the Phase II analysis as presented above. It is anticipated that these loans funds would • Dissolution of Agency, Phase I1.RDA Staff Report 3 1 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution ofRedevelopment Agency Redevelopment Agency Staff Report October 28, 2002 not be able to be repaid to the City until June, 2017. It will also be necessary for the City Council to agree to loan the necessary funds to the Agency. If the Agency determines to proceed, the appropriate City Council resolution has been prepared and will be on the City Council agenda this evening for consideration. FISCAL IMPACT: The proposed study would determine if adverse impacts to the City General Fund would be created if the Agency were to be dissolved. The Agency would assume an additional debt of $95,000 plus an interest accrual of 5% per annum. It is anticipated that the Agency will not have sufficient funds to repay the loan and accrued interest until June, 2017. RECOMMENDATION: Agency determination regarding proceeding with consideration of dissolution. If the Agency determines to proceed, the Agency should: ❑ Select preferred appraisal firm; ❑ Authorize the Executive Director to negotiate and execute the appropriate contracts in accordance with the proposals of the selected consultants; ❑ Adopt Resolution No. , A Resolution of the Redevelopment Agency of the City of Seal Beach Authorizing a Budget Amendment, No RDA 03 -01, for Consultant Services in Phase II — Dissolution of Redevelopment Agency; and ❑ Adopt Resolution No. , A Resolution of the Redevelopment Agency of the City of Seal Beach Accepting a Loan from the City of Seal Beach in the Amount of $ 95,000.00. NOTED a APPR VED: r- - e Whittenberg John Bahorski irector of Development Services Ex-,4Ttive Director Attachments: (6) Attachment 1: Letter Proposal dated October 22, 2002 re: Response to Request for Proposal regarding appraisals of Redevelopment Agency properties in the City of Seal Beach, submitted by R. P. Laurain & Associates Incorporated Dissolution of Agency, Phase ll.RDA Staff Report 4 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 Attachment 2: Letter Proposal dated October 17, 2002 re: Proposal for Appraisal Services, 3 Larger Parcels, Seal Beach — APNs 043 -122 -036, 037 and 095- 001 -051, submitted by Donahue & Company, Inc. Attachment 3: Letter Proposal dated October 22, 2002 re: Proposal Services for Dissolution of Redevelopment Agency, Keyser Marston Associates, Inc. Attachment 4: Letter Proposal dated October 21, 2002 re: Proposal for Follow -up Assistance, Keyser Marston Associates, Inc. Attachment 5: Resolution No. /Jo? 3 , A Resolution of the Redevelopment Agency of the City of Seal Beach Authorizing a Budget Amendment, No RDA 03 -01, for Consultant Services in Phase II — Dissolution of Redevelopment Agency Attachment 6: Resolution No. 4 , A Resolution of the Redevelopment Agency of the City of Seal Beach Accepting a Loan from the City of Seal Beach in the Amount of $ 95,000.00 Dissolution of Agency, Phase 11. RDA Staff Report 5 Consideration of Consultant Services and Loan, from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 1 LETTER PROPOSAL DATED OCTOBER 22, 2002 RE: RESPONSE TO REQUEST FOR PROPOSAL REGARDING APPRAISALS OF REDEVELOPMENT AGENCY PROPERTIES IN THE CITY OF SEAL BEACH, SUBMITTED BY R. P. LAURAIN & ASSOCIATES INCORPORATED Dissolution of Agency, Phase II.RDA Staff Report R. P. L A U R A I N 8c AS S O CIATE S INCORPORATED 3353 LINDEN AVENUE, SUITE 200 LONG BEACH, CA 90807 -4503 TELEPHONE (562) 426 -0477 October 22, 2002 FACSIMILE (562) 988 -2927 Mr. Lee Whittenberg Director of Development Services City of Seal Beach 211 Eighth Street Seal Beach, California 90740 -6379 Subject: Response to Request for Proposal • regarding appraisals of Redevelopment Agency properties in the City of Seal Beach, California Dear Mr. Whittenberg: Receipt is acknowledged of your recent invitation to submit a proposal for professional real estate appraisal services regarding certain properties owned by the Redevelopment Agency, or wherein the Agency has an option to purchase. Each property is identified and addressed with respect to the Orange County Assessor's Number, location, existing development, vesting, and objective of the appraisal. Property No. 1: • Orange County Assessor's No.: 43- 122 -36 • Located within the southwest quadrant of the intersection of Coast Highway and 12th Street, in Seal Beach. • The property is currently developed as a neighborhood commercial center having various stores and shops, plus on -site parking accommodations. • It is understood that the underlying fee interest in the property was acquired from the Los Alamitos Unified School District by the Redevelopment Agency; there is an outstanding balance on the purchase -money mortgage or trust deed note. The property was subsequently leased by the Agency (lessor) to a developer (master lessee) for the development of the neighborhood commercial center; subleases have been entered by the master lessee with the various store and shop tenants. APPRAISERS • ANALYSTS Mr. Lee Whittenberg Director of Development Services City of Seal Beach October 22, 2002 Page 2 Property No. 1: (Continued) • The objective of the appraisal is the fair market valuation of the Agency's (lessor's) interest in the subject property. As part of the overall valuation study, an allocation can be provided of the value of the lessor's interest and master lessee's interest. It will be neces- sary to review a copy of the existing master lease, including all supplements, amendments, and exhibits, if any. The agreement between the Agency and School District should also be reviewed for • any conditions or covenants that could influence the land value. Property No. 2: • Orange County Assessor's No.: 43- 122 -37 • Located within the northwesterly quadrant of the intersection of 12th Street and Landing Avenue, in Seal Beach. • The site is developed with former school classrooms presently utilized as two separate child day care facilities. • The site is vested with the Los Alamitos Unified School District. The Redevelopment Agency is currently leasing the property with an option to purchase. The Agency is subleasing the property to the two child day care businesses. • The objective of the appraisal study is the fair market valuation of the subject property based on the highest and best use thereof. Property No. 3: • Orange County Assessor's No.: 095 - 010 -51 • Located at the southwest corner of the intersection of Seal Beach Boulevard and Adolfo Lopez Drive, in Seal Beach. • The site is currently developed with the main Police Station, Animal Control Animal Shelter, etc. • The fee simple interest in the property is vested with the Redevelop- ment Agency. The buildings and on -site improvements were constructed at the cost of the Agency. • The objective of the appraisal is the valuation of the subject land and improvements. An allocation of the total value, between the land and improvements, will be provided. R. P. L A U R A I N 8c ASSOCIATES KEHIp..fEC Mr. Lee Whittenberg Director of Development Services City of Seal Beach October 22, 2002 Page 3 The scope of work is essentially indicated above following comments regarding the objective of each appraisal. The scope of work will include a formal appraisal inspection of each property, review of the various interests of each property (i.e. lessor's interest, master lessee's interest, etc., if applicable), review and analysis of market data applicable to each property (land sales, improved property sales, building cost data, rental information, vacancy rates, operating expenses and ratios, etc.), and valuation analysis of each property. Title to each property will be assumed to be good and merchantable; the value of each will be based accordingly. The formal appraisal report, addressing the value(s) of the three subject properties can be completed and delivered to your offices within 45 to 50 days following receipt of your authorization to proceed. The fee for appraisal services will be in the total amount of $9,700. This firm has the capability of performing the requested real estate appraisal services without the aid or assistance of sub - consultants. This firm has broad experience with the appraisal of commercial, industrial and residential property in beach communities within Orange, Los Angeles, and San Diego Counties. Certain of the appraisal studies have included leased fee, master leasehold, and multiple levels of subleasehold interests. The subject appraisal study will be prepared in accordance with the Uniform Standards of Professional Appraisal Practice. A resume of background and qualifications is enclosed for your review. If you have any questions regarding this proposal, please contact me at your convenience. Very truly yours, R. P. LA •-• ' & ASSOCC' S INC. .010 I /0e ...0 •0 0°°v .. 4°Pr- , . •: • - . L. ra Certified General Real Estate Appraiser California Certification No. AG 007689 RPL:II Enclosure R . P. L A U R A I N & AS S OCIATES •cw.on.reo RESUME OF BACKGROUND AND QUALIFICATIONS R. P. LAURAIN & ASSOCIATES APPRAISERS - ANALYSTS • PROFESSIONAL QUALIFICATIONS AND CLIENT REFERENCES OF • Ronald P. Laurain California Certification No. AG 007689 FIRM AFFILIATION: R. P. Laurain & Associates, Inc. 3353 Linden Avenue, Suite 200 Long Beach, California 90807 -4503 (562) 426 -0477 Ronald P. Laurain, President John P. Laurain, Vice President Roger Douglass, Consulting Appraiser Vaughn A. Hosmann, Consulting Appraiser Scott A. Lidgard, Consulting Appraiser PROFESSIONAL ORGANIZATION AFFILIATIONS: Appraisal Institute Senior member; hold professional endorsement and designation "SRPA" (senior real property appraiser), and "SRA" (senior residential appraiser). Past President, Chapter No. 94, Long Beach, California (1969). Director (1971 -74). Delegate to California Appraisers Council (1973 -80). Served as chairman or member of various committees including Education Committee, Legislation & Research Committee, Professional Practices (Ethics) Committee, Senior Designation Committee, and Examination Committee. District Vice Governor (1979 -81). American Society of Appraisers Senior member; hold professional endorsement and designation "ASA" in urban real estate. Past President of Los Angeles Chapter (1974 -75). Ethics Counselor (1975 -76). Served as chairman or member of various committees including Membership Committee, Education Committee, Examiners Committee, and International Convention Education Committee. R. P. L A U R A I N ASSOCIATE S APPRAISERS • ANALYSTS • 1 PROFESSIONAL OUALIFICATIONS /REFERENCES (Continued) PROFESSIONAL ORGANIZATION AFFILIATIONS: (Continued) International Right of Way Association Senior member; hold professional endorsement and designation "S RWA." Member of Professional Development Committee, Los Angeles Chapter Certified General Real Estate Appraiser by the Office of Real Estate Appraisers, State of California. Certification No. AG 007689. American Arbitration Association Member of National Panel of Arbitrators (1968 - present). California Appraisers' Council President (1979). EXPERT WITNESS: Qualified as an expert on Real Property Valuation in the following courts: Los Angeles County Superior Courts. Orange County Superior Courts. Federal Bankruptcy Court. • APPRAISAL SERVICES FOR: Appraisal services rendered for: Cities: City of Arcadia City of El Segundo City of Bell City of Gardena City of Bellflower City of Garden Grove City of Buena Park City of Hawaiian Gardens City of Carson City of Huntington Beach City of Cerritos City of Huntington Park City of Claremont City of Industry City of Colton City of Inglewood City of Commerce City of Irwindale City of Compton City of Lakewood City of Cudahy City of La Mirada City of El Monte City of La Puente R. P. L A U R A I N ASSOCIATES _ APPRAISERS - ANALYSTS • 2 PROFESSIONAL QUALIFICATIONS /REFERENCES (Continued) APPRAISAL SERVICES FOR: (Continued) Cities: (Continued) City of Lomita City of Rolling Hills Estates City of Long Beach City of San Jacinto City of Los Angeles City of San Juan Capistrano City of Lynwood City of Santa Ana City of Monterey Park City of Santa Fe Springs City of Norwalk City of Santa Monica City of Ontario City of Signal Hill City of Paramount City of South El Monte City of Pasadena City of West Hollywood City of Redondo Beach City of Whittier City of Riverside Redevelopment Agencies: Anaheim Redevelopment Agency • Bell Redevelopment Agency Buena Park Redevelopment Agency Carson Redevelopment Agency Compton Community Redevelopment Agency Corona Redevelopment Agency El Cajon Redevelopment Agency Hawaiian Gardens Redevelopment Agency Huntington Beach Redevelopment Agency Huntington Park Redevelopment Agency Inglewood Redevelopment Agency La Mirada Redevelopment Agency Long Beach Redevelopment Agency Los Angeles Community Redevelopment Agency Los Angeles County Redevelopment Agency Maywood Redevelopment Agency Monterey Park Redevelopment Agency Paramount Redevelopment Agency Pasadena Redevelopment Agency Santa Fe Springs Redevelopment Agency Signal Hill Redevelopment Agency Whittier Redevelopment Agency Other Public Agencies: Bassett Unified School District Caltrans Central Basin Municipal Water District Compton Unified School District R . P . L A U R A I N 8c ASSOCIATES APPRAISERS - ANALYSTS • 3 PROFESSIONAL QUALIFICATIONS /REFERENCES (Continued) APPRAISAL SERVICES FOR: (Continued) • Other Public Agencies: (Continued) Cucamonga County Water District Federal Aviation Administration (FAA) Federal Housing Administration (FHA) Long Beach Transit Company Long Beach Unified School District Long Beach Water Department Los Angeles County Department of Beaches and Harbors Los Angeles County Facilities Management Department Los Angeles County Internal Services Department Los Angeles County Metropolitan Transportation Authority Los Angeles Unified School District Metropolitan Water District of Southern California Pasadena Unified School District Port of Long Beach Port of Los Angeles Port of San Diego Resolution Trust Corporation (RTC) Southern California Rapid Transit District State of California, Santa Monica Mountains Conservancy . Trust for Public Land, national land conservation organization U. S. Department of Housing and Urban Development (HUD) U. S. Department of Interior, National Park Service U. S. Department of the Navy Partial Corporate List: Abrasive Finishing Co. Douglas Equipment Co. Allstate Insurance Co. Family Health Program American Savings Farmers & Merchants Bank American Title Company Federal Home Loan Mortgage Aminoil U.S.A., Inc. Corporation Bank of America Federal Mogul Corporation Boise Cascade Ferro Corporation Buffums Goodwill Industries Capital Westward Inc. Great Western Bank Cascade Pump Company Harbor Bank Chevron USA Harriman Jones Medical Clinic CNA Insurance Hartford Insurance Group Coast Federal Bank International Industrial Commercial Grinding Co. Properties Coopers & Lybrand International Rectifier R. P. LAURAIN 6z AS SOCI A TES APPRAISERS - ANALYSTS • 4 PROFESSIONAL QUALIFICATIONS /REFERENCES (Continued) APPRAISAL SERVICES FOR: (Continued) Partial Corporate List: (Continued) Kaiser Foundation Pan Pacific Nederland Lloyds Bank Queen City Bank Long Beach Community Republic Metal Hospital Rosecrans Medical Group Long Beach Memorial Sabin Robbins Paper Co. Hospital South Bay Leasing Corp. Long Beach Bank - Southwest Diversified, Inc. Manhattan Properties, Inc. Suburban Coastal Corp. Marriott Corporation Sumitomo Bank Northern Trust Bank Texaco USA Northrop Corporation University Advisory Co. Obispo Medical Clinic Univ. of Southern California Orange Coast Title Co. Wells Fargo Bank Pacific Business Bank World Towers, Ltd. Pacific Valve, Inc. Zurn Industries Attorneys: Atkinson & Atkinson Nossaman, Guthner, Thomas G. Baggot Knox & Elliott Ball, Hart, Hunt, Brown, Oliver, Barr & Vose and Baerwitz O'Melveny & Myers Christensen, White, Miller Pray, Price, Williams Fink & Jacobs & Russell Mark Curtis James C. Powers Josephine A. Fitzpatrick Glenn L. Rabenn Garner & Kreinces Norman Rasmussen Patrick A. Hennessey Richards, Watson & Kirtland & Packard Gershon Lawrence H. Lackman Marc S. Rothenberg Laskin & Graham Jack D. Scott Jeffrey Lyon Robert F. Waldron Martin & Stamp Williams & Williams M. D. Miguelez David E. Wulfsberg Linda Moon George S. Zugsmith R. P. L A U R A I N ASSOCIATES APPRAISERS - ANALYSTS 5 PROFESSIONAL QUALIFICATIONS /REFERENCES (Continued) ACADEMIC BACKGROUND: Graduate of secondary schools in Wayne County (Detroit area), Michigan. Advanced studies at Henry Ford College, and the University of Michigan Extension. Completed additional studies at Compton College, and the University of California at Los Angeles Extension. Received • Certificate in Real Estate from U.C.L.A. Successfully completed classes in Real Estate including: Real Estate Appraisal I, Advanced Real Estate Appraisal, Condemnation Appraising and Eminent Domain, Principles of Income Property Appraising, Legal Aspects of Real Estate, Real Estate Law, Real Estate Finance, Real Estate Management, Real .Estate Practice, and Real Estate Research, plus various courses and seminars sponsored by the national appraisal organizations. INSTRUCTOR: California State University, Long Beach Real Estate Appraisal Guest speaker and lecturer on subject of real estate appraisal at • various universities, colleges, professional appraisal organi- zations, etc., including: UCLA, California State University, Long Beach; Long Beach Community College; Cerritos Community College; Appraisal Institute; American Society of Appraisers; and, International Right of Way Association. ADVISOR: Member of Assessment Practices Advisory Council (1978 -83) Los Angeles County Assessor Real Estate Examination Revision Study Committee Department of Real Estate, State of California R. P. LAURAIN ASSOCIATES APPRAISERS - ANALYSTS 6 • PROFESSIONAL QUALIFICATIONS /REFERENCES (Continued) BUSINESS AFFILIATIONS: Roy C. Laurain, Realtor and Appraiser, Detroit area, Michigan Staff Assistant - 2 years T. H. Scanlon Appraisal Company, Detroit area, Michigan Staff Appraiser - 2 years Security Bank (12 branches), Detroit area, Michigan Chief Appraiser - 1 year Locke Land Services, Long Beach, California Senior Appraiser, and Vice President - 7 years R. P. Laurain & Associates, Inc., Long Beach, California Appraisers - Analysts, established January, 1969. R. P. LAURAIN S: ASSOCIATES APPRAISERS - ANALYSTS 7 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 2 LETTER PROPOSAL DATED OCTOBER 17, 2002 RE: PROPOSAL FOR APPRAISAL SERVICES, 3 LARGER PARCELS, SEAL BEACH - APNS 043 - 122 -036, 037 AND 095- 001 -051, SUBMITTED BY DONAHUE & COMPANY, INC. Dissolution of Agency, Phase II.RDA Staff Report 7 DONAHUE 8 COMPANY, INC. PROPERTY AND URBAN ECONOMICS 23 CORPORATE PLAZA DRIVE JOHN C. DONAHUE, MAI SUITE 160 TELEPHONES: KEVIN J. DONAHUE, MAI NEWPORT BEACH. CALIFORNIA 92660-7942 (9491760-3166 BARBARA L. ZACHRY, MAI (800) 734 -0074 SYDNEY H. HAWRAN, MAI FACSIMILE: JAMES C. MALM (949) 760 -5496 CARL E. NELSON +� " •w • donal•uecocom October 17, 2002 Mr. Lee Whittenberg Re: Proposal for Appraisal Services Director of Development Services 3 Larger Parcels City of Seal Beach Seal Beach Redevelopment Agency APNs 043 - 122 -036, 037 and 211 Eighth Street 095- 001 -051 Seal Beach, CA 90740 Proposal No. 6113 Dear Mr. Whittenberg: I am pleased to respond to your Request For Proposal for valuation services required for the above referenced properties. It is my understanding that the three different properties include a retail shopping center, a school development now used as a day care facility and an industrial property currently used as the Police station and the city yard. The appraisal will contain a fair market value of the properties "as improved ". It is my understanding that the appraisals of the above noted properties will be used by the city for internal review and possibly for acquisition by the city where there is an option to purchase. SCOPE OF WORK I propose to value the parcels in fee simple interest at their highest and best use. Interim use value may be included as well if the existing improvements are not the highest and best use of the parcels. Unless otherwise specified, the value will be based on a current date of value. Upon completion of the appraisal, I will prepare and deliver a total of three (3) copies of the complete appraisal report in a summary format meeting all requirements of the Uniform Standards of Professional Appraisal Practice (U.S.P.A.P.), as well as the Standards of Professional Practice and Code of Professional Ethics of the Appraisal Institute. The report will also be prepared in accordance with State and Federal Uniform Relocation Assistance and Real Property Acquisition Acts, including any amendments, California Eminent Domain Law, California Redevelopment Law and any other applicable statutes. The appraisal will require a determination of the highest and best use of each of the three subject properties. Once the highest and best use for each parcel is determined, a comparable sales search will begin for land value as well as applicable improved value comparables. If necessary, the all three generally accepted approaches to value will be used including the replacement cost, direct comparison and income approach. The comparable data search will be concentrated on properties proximate to the subjects but may be expanded depending on the existing market for each property type. Given that there are three types of property uses involved in the appraisal, at • Mr. Lee Wittenberg -2- October 17, 2002 least three sets of data will be required; retail /commercial, school /office and industrial (land and improvements). As at least one of the properties is considered "special purpose ", additional cost data will also be required. The appraisal process will begin with a physical inspection of each of the properties and a search of the history of each property including planning documents and building permit information to be provided by the city. Prior to beginning work on the appraisal, I will meet with the Redevelopment Agency to review the scope of work and appraisal issues for this assignment. If desired, I will also submit preliminary findings to the Agency at a pre - submittal meeting prior to finalizing the report. FEES AND TIME SCHEDULE The total proposed not to exceed appraisal fee for this valuation is $32,850. This fee is payable upon delivery of the report. Proposed time of delivery is ninety (90) working days from the authorization to proceed. The proposed fee breakdown is as follows: Parcel 043-122-036 $10,800 Parcel 043-122-037 $ 9,450 Parcel 095- 001 -051 $12,600 • If the agency desires, the valuations of the properties can be delivered separately with the first of three provided within sixty -five (65) working days and the last two to follow within the proposed ninety (90) working days. If this option is taken, 1/3 ($10,950) of the proposed fee will be due • upon delivery of the first appraisal document. The proposed fee for this assignment assumes the properties are free and clear of hazardous waste and contaminants. This proposal also includes the assumption that the City will- supply title reports and the parcels' legal description prior to the start of this appraisal project. CAPABILITIES TO PERFORM REQUESTED SERVICES I have included as an attachment to this proposal a description of my professional background including my qualifications. I have had extensive experience in all three required property valuation types (retail /shopping center, office, industrial property) and, if required, will be happy to provide references pertinent to past work of this type. Projects of this type I have appraised recently include a restaurant/retail property in Fontana, a retail strip center for the Whittier Redevelopment Agency, 10 commercial properties for the City of Santa Ana, an industrial facility along the Alameda Corridor for ACTA, two large industrial buildings in the Irvine Industrial Park area for TCA, as well as numerous office /commercial and • Mr. Lee Wittenberg -3- October 17, 2002 industrial properties along the I -5 Freeway for the State of California. I have appraised numerous office properties for the State of California in the context of the I -5 widening project over the past 10 years. PROPOSED SUB - CONSULTANTS None. With this proposal, I have included a copy of my hourly billing rates. If required, additional hours in consulting are time -based fees that will be accounted for and billed in addition to the proposed report fee. Should you have any questions, please do not hesitate to call me. Thank you for the opportunity to propose on this appraisal project. I look forward to working with you. Respectfully submitted, DONAHUE & COMPANY, INC. Sydney . Hawran, MAI SHH:tme • Attachment SYDNEY H. HAWRAN, MAI STATE CERTIFICATION NO. AG018039 QUALIFICATIONS EXPERIENCE Donahue and Company. Inc.. Newport Beach. California; 1994 - Present Senior Appraiser - Responsible for valuation of all property types. Ms. Hawran's most recent assignments include the analysis of fee simple, leased fee and leasehold interests for litigation purposes. Significant experience in appraisal, project management and review of multiple parcel full and partial takings and damage analysis for large landholdings and major income properties for eminent domain purposes. An emphasis on complex partial takings from a variety of commercial and industrial properties inclusive of self storage facilities, research and development properties, office buildings and hotels. Her experience includes an expertise in multi parcel takings for large agency projects ranging from roadways to school sites. She is qualified as an expert witness in San Bernardino and Orange County Superior Courts. Lea Associates. Inc.. 1992 - 1994 Senior Analyst - Responsible for providing real estate analysis and studies, with emphasis on narrative appraisal assignments dealing with all major real estate categories. Project management duties included review of and guidance in appraisal practice to staff appraisers. Significant appraisal assignments include the valuation of a planned community in Ventura County. Other major property types including office and hotel along the I -5 Freeway for right of way acquisition by the Orange County Transportation Authority. 1983 - 1992 Ms. Hawran has provided real estate consultation and analytical services for public and private sectors. Her range of appraisal experience encompasses commercial and industrial property, including office buildings, retail centers, hotel/motels, and industrial buildings throughout Southern California. Land appraisal assignments have included agricultural, agricultural/residential subdivision, multi - residential, and commercial/industrial site valuation. Property rights appraised have included both fee simple and leased fee interest. Other appraisal assignments have included the valuation of access rights, partial interest, easement, and full acquisition appraisal work in all of the preceding areas along with highest and best use studies and absorption estimates. The concentration of Ms. Hawran's work has been performed in Orange, San Bernardino, Riverside, San Diego, and Los Angeles counties. Ms. Hawran spent eight years as a Right of Way Agent for the State of California, Department of Transportation serving in the appraisal, relocation and acquisition functions of the Department. State service took place in District 8 (San Bernardino and Riverside counties) and District 12 (Orange County). 2 MEMBERSHIP /AFFILIATION . Appraisal Institute, MAI Designation No. 10069 Certified General Real Estate Appraiser, Office of Real Estate Appraisers. State of California, Certificate No. AG018039 International Right of Way Association Active in several professional organizations, Ms. Hawran is a past President of the Southern California Chapter of the Appraisal Institute and still active in the Region on a National level. She is also a past Orange County Chapter President and National Director of the International Right of Way Association and is an appraisal course instructor for both organizations. Course Instructor Appraisal Institute * Course 410 - Standards of Professional Practice Part A (USPAP) * Course 420 - Standards of Professional Practice Part B (Code of Professional Ethics) * Course 430 - Standards Part C International Right of Way Association * Course 101 - Principles of Real Estate Acquisition * Course 400 - Uniform Standards of Professional Appraisal Practice * Course 401 - The Appraisal of Partial Acquisitions * Course 403 - Easement Valuation * Course 404 - Appraisal Theory and Principles * Course 400 - Uniform Standards of Professional Appraisal Practice EDUCATION University of California, Los Angeles, California: B.A. Degree, Economics, 1978 University of California, Riverside, California: Graduate School of Management course work in economics, finance, land use planning and management, 1986 University of California, Irvine, California: Commercial and industrial development management and real estate finance courses, 1989 - 1991 Appraisal Institute Courses/Examinations: * Comprehensive Examination, 1992 * Demonstration Appraisal Report, 1992 * Report Writing and Valuation Analysis, 1989 * Standards of Professional Practice, 1988 3 EDUCATION (Cont.) * Case Studies in Real Estate Valuation, 1988 * Capitalization Theory and Techniques, Part B, 1987 * Capitalization Theory and Techniques, Part A, 1986 * Basic Valuation Procedures, 1985 * Residential Valuation, 1984 * Real Estate Appraisal Principles, 1983 International Right of Way Association Courses: * Property Descriptions, 1988 * Interpreting Engineering Drawings, 1988 * Business Relocation, 1986 * The Appraisal of Partial Acquisitions, 1986 * Communications in Real Estate Acquisition, 1986 * Principles of Real Estate Acquisition, 1984 • * Relocation Assistance, 1983 DONAHUE & COMPANY, INC. CORPORATE PROFILE Donahue and Company is a full service forensic real estate appraisal firm, currently comprised of four senior level analysts, one staff appraiser, a research department and secretarial staff. The company has been in operation locally for thirty -six years, with broad experience throughout Southern California and the western United States. An extensive in -house research library is maintained to provide resourceful and reliable information in order to ensure the completion of appraisal assignments in a timely manner. An extensive client list of public agencies, financial institutions, corporate and private clients is available upon request. The firm specializes in litigation related appraisal, inclusive of eminent domain. In addition to collective appraisal experience, senior personnel have significant related professional backgrounds in the areas of title insurance, right -of -way acquisition, land planning, engineering and relocation assistance. This diversity and working knowledge of the State and Federal acquisition guidelines and eminent domain law, as applied to appraisal practice, is of great assistance in undertaking appraisals and/or right -of -way consultation. Pertinent professional background and related experience qualifications are detailed in individual staff resumes. Donahue and Company is currently insured in conformance with required Commercial General Liability and Automobile Liability Coverage. All employees of Donahue and Company are covered by State Workers Compensation. The following is a brief synopsis of each appraiser's resume. John C. Donahue, MAI, President and Chairman of Donahue & Company, Inc., has been a real estate appraiser since 1963. Related experience includes serving as a County • of Orange Right -of -Way Agent, and as an acquisition agent from 1959 to 1963. He has a • B.A. degree from Whittier College and attended law classes 1961 -1963 at Southwestern Law University. The Appraisal Institute (previously the American Institute of Real Estate Appraisers) designated Mr. Donahue as Member Number 5998 in November 1979, and he is currently certified under the Institute's Voluntary Continuing Education Program. In addition, he is a charter member of the Orange County Chapter of the International Right - of -Way Association and has served as a speaker, instructor and lecturer for many professional organizations throughout California. Mr. Donahue is also a California State Certified General Real Estate Appraiser. Specializing in litigation support services, John Donahue's reputation as a forensic witness is prominent throughout the State. He has testified in the Superior Courts of all Southern California Counties, U.S. Court of Claims, Federal Bankruptcy Court and before Property Tax Appeal Boards. Valuation specialties include all eminent domain - related fields, transportation corridors, easement valuation and mitigation properties. 2 CORPORATE PROFILE (Cont.): Barbara Zachry, MAI, Senior Appraiser, entered the appraisal profession in 1983, joining Donahue & Company in 1986. Related experience includes serving as a Real Property Agent for Willdan Engineering and as an Assistant Right -of -Way Agent for the City of Fullerton. She obtained an MA Degree from California State University, Fullerton, a BA Degree from University of California at Los Angeles and was designated as a member of The Appraisal Institute in 1994. She is a Certified General Real Estate Appraiser with the State of California and a member of the International Right -of -Way Association, Chapter 67, currently serving as President. She has served on several active committees of the Southern California Chapter of the Appraisal Institute. Mrs. Zachry specializes in appraising investment grade properties, right -of -way acquisition and all matters relating to eminent domain law. Clientele served included financial institutions, public agencies, law firms and private industry. She is qualified as an expert witness in Orange County Superior Court. Kevin J. Donahue, MAI, Senior Appraiser and Vice President of Donahue & Company, joined the firm in 1986. He obtained a BA Degree in finance, concentrating in real estate studies, from California State University, Fullerton. Mr. Donahue holds the MAI designation and is a California State Certified General Real Estate Appraiser. In addition, Mr. Donahue is a member and Past President of the International Right -of -Way Association, Chapter 67. He has completed numerous courses and professional development seminars offered by the Appraisal Institute and the International Right -of- Way Association. • Mr. Donahue specializes in full and partial takings in eminent domain matters, special purpose properties, easement acquisition and public agency work. He has testified as an expert witness in Los Angeles and Orange County Superior Courts and Federal Bankruptcy Court. Additional duties as Vice President include review of staff appraisals, contract procurement, production control and personnel management. Sydney H. Hawran, MAI, Senior Appraiser, a native Southern Californian, began her real estate career in 1983. Ms. Hawran was educated at the University of California at Los Angeles and has developed a specialty in the area of Right -of -Way appraisal after spending eight years with the State of California Department of Transportation. Ms. Hawran is a State Certified General Real Estate Appraiser. In the International Right -of- Way Association (IRWA), she served as President and International Director for the Orange County Chapter. Ms. Hawran is also an approved Instructor of Standards of Professional Appraisal Practice for the Appraisal Institute and a Certified Appraisal • 3 CORPORATE PROFILE (Cont.): Instructor for IRWA. She is active in Chapter, Regional and National committee leadership of the Appraisal Institute and is past President of the Southern California Chapter. Her work includes a broad range of appraisal assignments for acquisition, condemnation, litigation support and lending purposes. Ms. Hawran has undertaken significant assignments, being responsible for providing real estate analysis and studies, with emphasis on narrative appraisal assignments within all major real estate categories. Other significant experience includes not only appraisal of, but project management and review coordination of partial takings and damage analysis for large land holdings, major income properties and multi - parcel acquisition for eminent domain purposes. Detailed resumes for each appraiser are available upon request. RATE SCHEDULE Effective June 1, 2001 Due to the diversity of assignments undertaken by our firm, all bids are project - specific. Large projects or those of extended duration may benefit from economies of scale. Where required, appraisal assignments are proposed as lump sum rather than at hourly rates. In complex matters, or when litigation support is necessary, Donahue & Company utilizes a Two -Tier hourly rate schedule, with each tier defined as follows: Tier A Hours: This category applies to time spent in a) initial appraisal investigation and subsequent report preparation, b) attorney /client conferences, and c) pretrial preparation including trial notebook, statements of valuation and court exhibit preparation. Tier B Hours: Hours spent in either a) deposition, b) arbitration and /or c) actual trial testimony, including standby, are billable under Tier B rates. Tier A Tier B John C. Donahue, MAI $300 $400 Barbary Zachry, MAI $250 $300 Sydney H. Hawran, MAI $250 $300 Kevin J. Donahue $225 $275 Sharon Fagundes $150 $175 James Malm $150 $175 Research Personnel $90 N /Ap. Administrative Assistance $50 N /Ap. In addition to hourly billings, expenditures incurred for sub - consultants, trial exhibits, messenger services, aerial photographs, etc. will be passed through to the client, with invoice copies attached to the monthly statements. A 10 percent administrative fee will be added to all pass - through expenses. Unless otherwise stated, payment terms are net thirty (30) days. Any past due balance is subject to a finance charge, computed at the periodic rate of 1.25 percent per month, equal to an annual percentage rate of 15 percent per annum. In addition to invoices rendered and interest thereon, the client agrees to pay all legal expenses and costs incurred by Donahue & Company, Inc. in the collection of any delinquent accounts. DONAHUE & COMPANY, INC. Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 3 LETTER PROPOSAL DATED OCTOBER 22, 2002 RE: PROPOSAL SERVICES FOR DISSOLUTION OF REDEVELOPMENT AGENCY, KEYSER MARSTON ASSOCIATES, INC. Dissolution of Agency, Phase II.RDA Staff Report 8 KEYSER M A R S T O N ASSOCIATES I N C. ADVISORS IN: REAL ESTATE 500 SOUTH GRAND AVENUE, SUITE 1480 REDEVELOPMENT LOs ANGELES, CALIFORNIA 90071 AFFORDABLE HOUSING PHONE: 213/622 -8095 ECONOMIC DEVELOPMENT FAX : 213/622 -5204 FISCAL IMPACT INFRASTRUCTURE FINANCE • CITY OF = VALUATION AND CAL BEACH LITIGATION SUPPORT OC 1 2 3 2002 Los Angeles October 22, 2002 Calvin E. Hollis, II DEPARTMENT OF Kathleen H. Head DEVELOPMENT SERVICES James A. Rabe Paul C. Anderson Gregory D. Soo -Hoo Mr. Lee Whittenberg San Diego Director of Development Services Gerald M. Trimble Robert J. Wetmore City of Seal Beach Paul C. Marra 211 Eight Street SAN FRANCISCO Seal Beach, California 90740 -6379 A. Jerry Keyser Timothy C. Kelly Re: Proposal Services for Dissolution of Redevelopment Agency Kate Earle Funk p p g y Debbie M. Kern Dear Mr. Whittenberg: As requested, Keyser Marston Associates, Inc. (KMA) and Murphy & Davis, LLP (M &D) have prepared the attached team proposal to provide Redevelopment Plan dissolution services to the City of Seal Beach. The proposed scope of services provides for a financial feasibility analysis that will present a methodology and timing for satisfying the existing indebtedness obligations of the Agency and subsequent termination of the Redevelopment Plans. This analysis would expand our previous Phase 1 audit of financial obligations of the Agency, and also includes a summary of the impact on blight elimination that would be referenced in the dissolution ordinances. Our team will work closely with staff to ensure the process will proceed in a timely manner, which we anticipate to be completed in three months. We appreciate the opportunity to submit this proposal. Feel free to call us with any questions or comments at (213) 622 -8095. Sincerely, KEYSER MARSTON ASSOCIATES, INC. r _ Paul nderson Principal • PA0210014. KMA:PA:gbd 99900.000.002/10 /22/02 SCOPE OF SERVICES Keyser Marston Associates, Inc. (KMA) and Murphy & Davis, LLP (M &D) propose to provide redevelopment plan services to the City of Seal Beach to identify the financial impacts and affects on the remaining blighting conditions (if any) resulting from the termination of the City's two redevelopment projects and dissolution of the City's Redevelopment Agency. KMA and M &D will also provide the documentation and assist the City in the legal process related to these actions. KMA and M &D have worked successfully together in the past on redevelopment plan adoptions and amendments, and as such can provide the City with well- integrated documents within a timely manner. The California Community Redevelopment Law does not contain specific procedures for the early termination of a redevelopment plan, but does contain procedures for amending a redevelopment plan. The early termination of a redevelopment plan is akin to an amendment shortening the life of the plan. M &D would be responsible for the overall coordination of the study and termination /dissolution process including preparing and monitoring a schedule of actions, reviewing the report accompanying the proposed termination of the projects and preparing resolutions and ordinances required in connection with terminating the redevelopment projects and dissolving the Agency. KMA would analyze the financial impacts of terminating the redevelopment projects including addressing remaining blight. A. DOCUMENT PREPARATION AND REVIEW Task 1 — Schedule of Actions - M&D M &D will prepare a schedule of actions identifying all activities required by law leading to the termination of the Redevelopment Plans and the dissolution of the Agency. The schedule lists actions, responsible parties, scheduled dates and documents to be prepared. This includes schedule updates as necessary. Task 2 — Resolutions, Notices, Ordinance, and Responses to Written Objections — M&D and KMA M &D would prepare all required resolutions and ordinances, together with affidavits of mailing and a procedural outline for the conduct of joint and concurrent public hearings to consider termination of the Plans. M &D will prepare these documents for staffs use. Together M &D and KMA will prepare responses to written objections to the proposed terminations of the Plans and dissolution of the Agency (if any). PA0210014. KMA:PA:gbd 99900.000.002/10 /22/02 Task 3 — Mailing Notices and Labels - KMA KMA will prepare required public notices and provide Agency staff with mailing labels for mailing public notices to property owners, taxing agencies and others, as appropriate, to be notified of the termination of the redevelopment plans and dissolution of the Agency. Using the County Assessor data for the Project Areas, KMA will prepare mailing labels and the associated list to be used for the distribution of the joint public hearing notice for owners. Existing Agency occupant lists or Assessor site addresses will be used for the occupant mailing list. For staff's reference and use, KMA will also provide staff with a hard copy of the list of taxing agencies, owners and occupants and an electronic file. Task 4 — Report to City Council - KMA KMA will prepare a report of the Agency to the City Council describing the reasons for terminating the Redevelopment Plans and dissolving the Agency, as well as information and analysis necessary to support determinations by the City Council that the conditions precedent to termination of the Plans and dissolution of the Agency have been satisfied (i.e., no outstanding indebtedness or contractual obligations, completion of all required affordable housing activities). M &D will consult with KMA concerning the preparation of the report, including review of background materials and review of a draft of the report, as appropriate. Based upon the findings in the Implementation Plan and discussions with Agency staff KMA will prepare a description of the remaining blighting conditions in the Project Areas and how these remaining blighting conditions are anticipated to be alleviated following the termination of the redevelopment projects the existing implementation plan. KMA would conduct a review and analysis of the Agency's two Redevelopment Plans, the Implementation Plan and the Agency's audited financial statements for the most recent fiscal year to analyze the effect of the termination of the Redevelopment Plans. KMA will also prepare a financial feasibility analysis which incorporates the previously projected tax increment analysis prepared in the Phase 1 scope of services with a cash flow projection which can demonstrate how existing indebtedness obligations of the Agency will be satisfied so that dissolution can occur. Note that this feasibility analysis will be contingent upon (a) the Agency providing all necessary commercial appraisals of Agency -owned real estate; (b) legal counsel's opinion supporting the ability for the County or other financial entity to assume responsibility for payment of the Agency's existing indebtedness obligations and (c) the County's written agreement to assume the same. B. MEETING ATTENDANCE Both KMA and M &D will attend the joint and concurrent public hearings. Page 2 PA0210014. KMA • PA: g bd 99900.000.002/10 /22/02 SCHEDULE It is anticipated that the process could be accomplished within a three -month time period: • Month 1 would involve preparation of the report of the Agency to the City Council. • Month 2 would involve actions of the Planning Commission (reporting on the proposed Plan terminations), Agency and City Council (approving /receiving the Agency's report and setting joint and concurrent public hearings to consider the Plan terminations). • Month 3 would involve noticing and conducting the joint and concurrent public hearings, and the final actions on the ordinances terminating the Plans and dissolving the Agency. Page 3 PA0210014. KMA: PA: gbd 99900.000.002/10 /22/02 BUDGET KMA and M &D propose to complete the tasks outlined in Section I for a fixed fee of $14,500 including expenses. This includes a budget of $10,000 for KMA and $4,500 for M &D. Additional services beyond those identified in the scope would be billed at the hourly rates listed below. KEYSER MARSTON ASSOCIATES, INC. HOURLY FEE SCHEDULE 2002 A. JERRY KEYSER * $ 210.00 MANAGING PRINCIPALS* $ 200.00 PRINCIPALS* $ 185.00 MANAGERS* $ 155.00 SENIOR ASSOCIATES $ 140.00 ASSOCIATES $ 120.00 SENIOR ANALYSTS $ 105.00 ANALYSTS $ 90.00 TECHNICAL STAFF $ 72.50 ADMINISTRATIVE STAFF $ 57.50 Directly related job expenses not included in the above rates are: auto mileage, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost. Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date. A charge of 1% per month will be added to all past due accounts. * Rates for individuals in these categories will be increased by 50% for time spent in court testimony. MURPHY & DAVIS, LLP HOURLY FEE SCHEDULE Attorneys $ 175.00 Paralegals $75.00- $95.00 Extraordinary expenses, such as courier services and express mail, are separately itemized and billed. Routine expenses, such as long distance telephone calls, copying, postage, etc., are not separately itemized but are covered by a two percent (2 %) administrative charge added to each billing. Page 4 PA0210014.KMA:PA:gbd 99900.000.002/10 /22/02 Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 4 LETTER PROPOSAL DATED OCTOBER 21, 2002 RE: PROPOSAL FOR FOLLOW -UP ASSISTANCE, KEYSER MARSTON ASSOCIATES, INC. Dissolution of Agency, Phase II.RDA Staff Report 9 KEYSER M A R S T O N A S S O C I A T E S I N C . ADVISORS IN: REAL ESTATE 500 SOUTH GRAND AVENUE, SUITE 1480 REDEVELOPMENT LOS ANGELES, CALIFORNIA 90071 AFFORDABLE HOUSING PHONE: 213/622 -8095 -- ECONOMIC DEVELOPMENT FAX: 213/622 -5204 CITY OF SEAL BEACH FISCAL IMPACT INFRASTRUCTURE FINANCE VALUATION AND OCT 3 2002 LITIGATION SUPPORT DEPARTMENT OF October 21, 2002 DEVELOPMENT SERVICES Los Angeles Calvin E. Hollis, 11 Kathleen H. Head James A. Rabe Paul C. Anderson Mr. Lee Whittenberg Gregory D. Soo -Hoo City of Seal Beach San Diego 211 Eighth Street Gerald M. Trimble California s nn� A n nn� Paul C. Marra Seal Beach, California 90 7 40 -627 9 SAN FRANCISCO A. Jerry Keyser Re: Proposal for Follow -up Assistance Timothy C. Kelly Kate Earle Funk Robert J. Wetmore Dear Mr. Whittenberg: Debbie M. Kern Pursuant to your request, Keyser Marston Associates, Inc. (KMA) is providing this proposal for follow up assistance regarding the potential dissolution of the Seal Beach Redevelopment Agency. The City desires follow up assistance in its investigation of dissolution alternatives that may be available in conjunction with Orange County assuming the Agency's existing debt service liabilities. This assistance will be provided to the Agency on a time and materials basis, with a not -to- exceed budget of $9,000. The proposed work scope would include: 1. Discussions with a bond counsel, mutually agreeable with the County Orange and the Redevelopment Agency, to determine the legal feasibility of permitting the County to assume and administrate future debt service obligations for the Agency's existing tax allocation bonds. 2. Additional discussions with County Executive Office representatives regarding the Agency's consideration of item 1 above. As of this writing, KMA is awaiting word from Mr. Paul Lanning of the County Executive Office regarding the City's cost to reimburse the County for its outside legal counsel expenses to review this offer. We are therefore unable to provide this cost to you at this time. Sincerely, KEYSER MARSTON ASSOCIATES, INC. Greg Soo- :o Principal 0210038.KMA:GSH:gbd 99900.000.002 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 5 RESOLUTION NO. (23, A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH AUTHORIZING A BUDGET AMENDMENT, NO RDA 03 -01, FOR CONSULTANT SERVICES IN PHASE II - DISSOLUTION OF REDEVELOPMENT AGENCY Dissolution of Agency, Phase II.RDA Staff Report 10 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff' Report October 28, 2002 • RESOLUTION NO. 47 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH AUTHORIZING A BUDGET AMENDMENT, NO RDA03 -01, FOR CONSULTANT SERVICES IN PHASE II - DISSOLUTION OF REDEVELOPMENT AGENCY THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: WHEREAS, the fiscal year budget requires budgetary amendments as outlined below: CURRENT PROPOSED BUDGET DEPT ACCOUNT BUDGET BUDGET AMD (DIFF) Redevelopment Agency — Riverfront Project Area Contract Prof. Services 063 - 081 - 44000 $ 3,243 $ 98,243 $95,000 NOW, THEREFORE BE IT RESOLVED that the Redevelopment Agency of the City of Seal Beach hereby adjusts Redevelopment Agency- Riverfront Project Area Contract Professional Services, subject to City Council adoption of Resolution No. , A Resolution of the City Council of the City of Seal Beach Authorizing a Loan to the Seal Beach Redevelopment Agency in the Amount of $ 95,000. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach at a meeting thereof held on the day of X002 AYES: Agencymembers NOES: Agencymembers Dissolution of Agency. Phase ll.RDA Staff Report 1 1 Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work, Dissolution of Redevelopment Agencv Redevelopment Agency Staff Report October 28, 2002 ABSENT: Agencymembers ABSTAIN: Agencymembers Chairman ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach, at a regular meeting thereof held on the day of , 2002. Joanne M. Yeo, City Clerk/Secretary Seal Beach Redevelopment Agency Dissolution of Agency, Phase 1I.RDA Staff Report 1, Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency StaffReport October 28, 2002 ATTACHMENT 6 RESOLUTION NO. a-1, A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ACCEPTING A LOAN FROM THE CITY OF SEAL BEACH IN THE AMOUNT OF $ 95,000.00 Dissolution of Agency, Phase II.RDA Staff Report 13 Consideration of Consultant Services and Loan from City of Seal Beach — Phase II Scope of Work. Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 RESOLUTION NO. D� A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ACCEPTING A LOAN FROM THE CITY OF SEAL BEACH IN THE AMOUNT OF $95,000.00 THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: WHEREAS, The Redevelopment Agency is reviewing various proposals to allow for the dissolution of the Redevelopment Agency of the City of Seal Beach upon compliance with all applicable provisions of the California Health and Safety Code; and WHEREAS, the Redevelopment Agency does not have sufficient un- obligated funds available to support the necessary consultant, staff, and legal expenses necessary to determine if the dissolution of the Redevelopment Agency of the City of Seal Beach is legally feasible and to determine the necessary steps to accomplish such dissolution; and WHEREAS, the General Fund Unobligated Fund Balance has sufficient funds available to lend $ 95,000 to the Redevelopment Agency of the City of Seal Beach; and WHEREAS, the Seal Beach City Council will be considering the authorization of said loan in the amount of $ 95,000 to the Redevelopment Agency of the City of Seal Beach on October 28, 2002 through the adoption of City Council Resolution No. ; and WHEREAS, the Redevelopment Agency of the City of Seal Beach will have the ability to repay a loan of $ 95,000 plus 5% simple interest by June 30, 2017. NOW, THEREFORE BE IT RESOLVED that the Redevelopment Agency of the City of Seal Beach hereby agrees to accept from the City of Seal Beach the sum of Ninety-Five Thousand Dollars ($95,000.00) from the City of Seal Beach General Fund Unobligated Fund Balance, effective November 1, 2002. This debt to the City of Seal Beach is hereby recorded and the foregoing sum shall be repaid to the City of Seal Beach on or before June 20, 2017 together with simple interest of 5% per annum, subject to City Council adoption of Resolution No. , A Resolution of the City Council of the City Dissolution of Agency, Phase 11.RDA Staff Report 14 Consideration of Consultant Services and Loan from City of Seal Beach — Phase 11 Scope of Work, Dissolution of Redevelopment Agency Redevelopment Agency Staff Report October 28, 2002 of Seal Beach Authorizing a Loan to the Seal Beach Redevelopment Agency in the Amount of $ 95,000. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach at a meeting thereof held on the day of , 2002. AYES: Agencymembers NOES: Agencymembers ABSENT: Agencymembers ABSTAIN: Agencymembers Chairman ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach, at a regular meeting thereof held on the day of , 2002. • Joanne M. Yeo, City Clerk/Secretary Seal Beach Redevelopment Agency Dissolution of Agency, Phase I1.RDA Staff Report 15