2008/08/26 City Council Resolution 2008-139RESOLUTION NO. 2008 -139
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT NO. 1
TO REIMBURSEMENT AGREEMENT WITH THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF ROHNERT PARK FOR THE CONSTRUCTION OF
THE PHASE I EASTSIDE SEWER LINE PROJECT (PROJECT NO. 2004-05)
WHEREAS, pursuant to the Community Redevelopment Law of the State of California
(Health and Safety Code Section 33000 et seq.), the Community Development Commission of
the City of Rohnert Park ( "CDC ") is carrying out the Redevelopment Plan for the Rohnert Park
Redevelopment Project Area ( "Redevelopment Project Area ");
WHEREAS, the City of Rohnert Park ( "City ") sewer model study has determined the
need for a new sewer pipeline to serve existing users and planned general plan growth in the City
( "Eastside Trunk Sewer Project" or "Project "). Phase I of the Eastside Trunk Sewer Project
( "Phase I") will install a sanitary sewer pipeline from the existing sewer pump station on J.
Rodgers Lane, across Costco's parking lot, continuing south along Redwood Drive to the south
side of Copeland Creek, and under Highway 101 to Commerce Boulevard, near City Hall;
WHEREAS, Phase I is located entirely within the Redevelopment Project Area
boundaries and predominately services the Redevelopment Project Area;
WHEREAS, eighty -eight percent (88 %) of the service area for the Phase I Improvements
lies within the Redevelopment Project Area, and the remaining 12% of the service area lies
outside the Redevelopment Project Area;
WHEREAS, pursuant to Health and Safety Code Section 33445 ( "Section 33445 "), the
CDC is authorized, with the consent of the City Council, to pay all or part of the value of the land
for and the cost of the installation and construction of any building, facility, structure, or other
improvements which are publicly owned either within or without the Redevelopment Project
Area, upon a determination by the City Council that such buildings, facilities, structures or other
improvements are of benefit to the Redevelopment Project Area or the immediate area in which
the Project is located, that no other reasonable means of financing such buildings, facilities,
structures, or other improvements are available to the community, and that the payment of funds
for the cost of such buildings, facilities, structures or other improvements will assist in the
elimination of one or more blighting conditions inside the project area and is consistent with the
Agency's five -year Implementation Plan;
WHEREAS, Section 33678 of the Community Redevelopment Law provides that the
portion of taxes allocated to the CDC pursuant to Section 33670(b) of the Community
Redevelopment Law ( "Tax Increments ") will not be deemed the receipt or appropriation of
proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax
Increments are used for redevelopment activity which primarily benefits the Redevelopment
Project Area;
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WHEREAS, the City and CDC entered into a Reimbursement Agreement, dated as of
May 22, 2007 ( "Reimbursement Agreement "), providing for the CDC to advance a portion of the
costs (the "Phase I Costs ") actually incurred by the City for the Phase I Improvements, in an
amount equal to 88% of the Phase I Costs, up to a maximum amount of $8,976,000 ( "CDC's
Contribution "). The CDC's Contribution amount was determined based upon the original
estimated cost of the Phase I Improvements ($10.2 million), and the percentage of the service
area for the Phase I Improvements that lies within the Redevelopment Project Area (88 %);
WHEREAS, following execution of the Reimbursement Agreement, the City was
successful in awarding a bid for the construction of the Phase I Improvements, but the estimated
Phase I Costs have increased to $13,800,000, an approximately $3.6 million increase over the
original Phase I Cost estimate due to rejection of the lowest bid as non - responsive, bid prices
higher than the engineers estimate, construction change orders, additional construction
management, and an allowance for resolution of disputed construction claims; and
WHEREAS, in order to enable the City to fund the additional estimated costs for the
Phase I Improvements, and undertake the construction of the Phase I Improvements for the
benefit of the Redevelopment Project Area and the immediate area in which the Project is located
and as an inducement to the City to do so, the parties desire to enter into an Amendment No. 1 to
Reimbursement Agreement ( "Amendment ") to increase the CDC's contribution to a maximum
amount of $12,144,000, 'for the Phase I Improvements, which increase is proportional to the
increase in the estimate for the Phase I Costs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council hereby reaffirms the findings and determinations set
forth in Resolution No. 2007 -83, adopted on May 22, 2007, with respect to the Reimbursement
Agreement, and hereby further finds and determines with respect to the Amendment (a) that the
Eastside Sewer Trunk Line, Phase I is of primary benefit to the Redevelopment Project Area;
(b) that no other reasonable means of financing the increase in the costs for construction of Phase
I is available to the community; and (c) that the payment of funds for a proportional share of the
estimated increase in the cost of Phase I will assist in the elimination of one or more blighting
conditions inside the Redevelopment Project Area and is consistent with the CDC's five -year
Implementation Plan adopted pursuant to Health and Safety Code Section 33490.
Section 2. The City Council hereby reaffirms the findings and determinations set
forth in Resolution No. 2007 -83, adopted on May 22, 2007, with respect to the Reimbursement
Agreement, and hereby further finds and determines with respect to the Amendment that
construction of Phase I is redevelopment as prescribed in Sections 33020 and 33021 of the
Community Redevelopment Law, that Phase I will primarily benefit the Redevelopment Project
Area, and that none of the funds contributed by the CDC used to construct Phase I will be used to
pay for employee or contractual services of any local government agency except for services
directly relating to the construction of Phase I.
Section 3. The City Council hereby approves the Amendment in substantially the
form currently on file with the City Clerk, and hereby authorizes and directs the Mayor to
execute the Amendment on behalf of the City, subject to any minor, technical or clarifying
(2)
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changes that may be approved by the City Attorney. The City Council hereby further authorizes
and directs the Mayor or his designee to take all actions and execute all documents as necessary
to carry out the Reimbursement Agreement, as amended by the Amendment, and accomplish the
construction of Phase I and the payment of a portion of the costs of Phase I by the CDC as
provided for in the Reimbursement Agreement, as amended.
DULY AND REGULARLY ADOPTED by the City Council of the City of Rohnert Park
this 26th day of August, 2008.
ATTEST:
CITY OF ROHNERT PARK
Ma or
!4Li7F RNIP
BREEZE::'. AYE SMITH: AYE STAFFORD: AYE VIDAK- MARTINEZ: AYE MACKENZIE: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
(3)
10252740 80121/0003
AMENDMENT NO. 1 TO REIMBURSEMENT AGREEMENT
ROHNERT PARK REDEVELOPMENT PROJECT
( Eastside Trunk Sewer Project — Phase .1)
THIS AMENDMENT NO. 1 TO REIMBURSEMENT AGREEMENT ( "Amendment ") is
entered into this day of 2008, by and between the
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK,
a public body, corporate and politic (the "CDC "), and the CITY OF. ROHNERT PARK, a
municipal corporation (the "City").
Recitals
A. The City and CDC entered into that certain Reimbursement Agreement, dated as
of May 22, 2007 (the "Agreement ") providing for the CDC to assist the City by paying a portion
of the costs (the "Phase I Costs ") actually incurred by `the City for the Phase I Improvements
portion of the Eastside Trunk Sewer Project (all as more fully defined and described in the
Agreement), in an amount equal to Eighty Eight Percent (88 %) of the Phase I Costs, up to a
maximum amount of $8,976,000 (the "CDC's Contribution "). The CDC's Contribution amount
was determined based upon the. following: (1) the Phase I Improvements were estimated to cost
$10.2 million; and (2) eighty -eight percent (88 %) of the service area for the Phase I
Improvements lies within the Rohnert Park Redevelopment Project Area.
B. Following: execution of the Agreement by the parties, the City was successful in
awarding a bid for the construction of the Phase I Improvements. However, the estimated Phase
I Costs have increased to $13,800,000, an approximately $3.6 million increase over the original
Phase I Costs estimate.
C. The CDC and City now desire to make certain modifications to the Agreement to
increase the maximum amount of the CDC's Contribution, in light of the increase in the
estimated Phase I Costs.
Agreements
THE CDC AND THE CITY HEREBY AGREE AS FOLLOWS:
1. Purpose of Amendment. The purpose of this Amendment is to increase the
maximum amount of the CDC's Contribution provided for under the Agreement from the
existing $8,976,000, to $12,144,000.
2. CDC's Contribution. The first .paragraph of Section 2 of the Agreement is hereby
amended in its entirety to read as follows:
"In consideration of the undertakings of the City under Section 1 of this
Agreement, the CDC shall assist the City by paying a portion of the actual costs
for the Phase I Improvements (the "Phase I Costs ") actually incurred by the City
for the Phase I Improvements. The CDC's assistance shall equal Eighty -Eight
Percent (88 %) of the Phase I Costs, up to a maximum amount of Twelve Million
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One Hundred Forty-Four Thousand Dollars ($12,144,000) (the "CDC's
Contribution "). The CDC's Contribution will be paid to the City upon delivery by
the City to the CDC of evidence of such costs. The City shall be responsible for
payment of all other Phase I Costs required to design, construct and install the
Phase I Improvements."
3. Terms of Reimbursement. The fourth paragraph of Section 2 of the
Agreement is hereby amended in its entirety to read as follows:
"To the extent development fees are collected by the City under the PFFP
for the Phase I portion of the Eastside Trunk Sewer Project, the City shall pay to
the CDC such amounts including principle and simple interest based on the
2007R Tax Allocation Bond .rate (the "Guaranteed Investment Contract Rate "),
from time to time, as and when collected by the City or as the parties may
otherwise agree, to reimburse the CDC for the CDC's Contribution provided for
hereunder."
4. Force and Effect. The effective date of this Amendment shall be the date that this
Amendment is signed by both parties. Except as modified and amended by this Amendment, all
other provisions of the Agreement shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the CDC and the City have executed this Amendment as of
the date first above written.
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
ROHNERT PARK
Lo
Attest:
LOIN
Chairperson
Secretary
Per CDC Reso. No. 2008 - adopted by
the Commission on , 2008
2
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CITY OF ROHNERT PARK
By:
Mayor
Attest:
IC
City Clerk
Per Reso. No. 2008 - adopted by the
Rohnert Park City Council on 12008
Approved as to Form:
C
City Attorney