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2007/05/22 City Council Resolution 2007-83RESOLUTION NO. 2007 -83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING AND AUTHORIZING THE EXECUTION OF A REIMBURSEMENT AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK FOR THE CONSTRUCTION OF THE EASTSIDE TRUNK SEWER PROJECT, PROJECT NO. 2004 -05 WHEREAS, pursuant to the Convnunity Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seg.), the Community Development Commission of the City of Rohnert Park (the "CDC ") is carrying out the Redevelopment Plan for the Rohnert Park Redevelopment Project Area (the "Project Area "); and WHEREAS, the City of Rolniert Park (the "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 (the "Eastside Trunk Sewer Project "). Phase I of the Eastside Trunk Sewer Project (the "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; and WHEREAS, Phase I is located entirely within the Project Area boundaries and predominately services the Project Area as shown in the Map entitled "Phase I Eastside Sewer Line Service Area ". As the map shows, eighty -eight percent (88 %) of the service area for the Phase I Improvements lies within the Project Area, and the remaining 12% of the service area lies outside the Project Area; and WHEREAS, pursuant to Health and Safety Code Section 33445 ( "Section 33445 "), the Community Development Commission (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 Project Area, upon a determination by the City Council that such buildings, facilities, structures or other improvements are of benefit to the 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 CDC's five -year Implementation Plan; and 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 Project Area; and WHEREAS, the Phase I Improvements are estimated to cost $10.2 million and under Section 33445, the CDC is authorized, with the consent of the City Council, to pay up to 88% of the costs to construct Phase I; and WHEREAS, advancement of the Community Development Commission Redevelopment Bond proceeds ( "Bond Proceeds ") to the City for up to 88% of the cost of Phase I would be an acceptable use of Bond Proceeds; and WHEREAS. when the City collects development fees through the PFFP for Phase I, the City could return the CDC advancement to the CDC for other projects; and WHEREAS, in order to enable the City to undertake the construction of the Phase I hnprovements for the benefit of the Project and the inunediate area in which the Project is located and as an inducement to the City to do so, the parties desire to enter into a Reimbursement Agreement ( "Agreement ") providing for the CDC to advance a portion of the costs relating to the construction of the Phase I portion of the Eastside Trunk Sewer Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council hereby finds and determines (a) that the Eastside Sewer Trunk Line, Phase I is of primary benefit to the Project Area; (b) that no other reasonable means of financing the construction of Phase I is available to the community; and (c) that the payment of funds for the cost of Phase I will assist in the elimination of one or more blighting conditions inside the 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 further finds and determines 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 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 1. Section 3. The City Council hereby approves the Agreement in substantially the form currently on file with the City Clerk, and hereby authorizes and directs the Mayor and the City Clerk to execute the Agreement on behalf of the City, subject to any minor, technical or clarifying changes that may be approved by the City Attorney. The City hereby further authorizes and directs the City Manager or his designee to take all actions and execute all documents as necessary to carry out the Agreement 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 Agreement. DULY AND REGULARLY ADOPTED this 22 "' day of May, 2007. CITY OF ROHNERT PARK vl � ` I Mayor ATTEST: RoHNERr PqR k City Clerk / / 19 62 CAC /FORNIN (2) BREEZE: AYE MACKENZIE: AYE SMITH: AYE STAFFORD: AYE VIDAK•MARTINEZ: AYE AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0) REIMBURSEMENT AGREEMENT ROHNERT PARK REDEVELOPMENT PROJECT (Eastside Trunk Sewer Project — Phase I) THIS REIMBURSEMENT AGREEMENT is entered into this day of , 2007, 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. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the CDC is a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws is carrying out the Redevelopment Plan ( "Redevelopment Plan ") for the Rohnert Park Redevelopment Project Area (the " Project "). B. Pursuant to Health and Safety Code 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 boundaries of the Project (the "Project Area "), upon a determination by the City Council that such buildings, facilities, structures or other improvements are of benefit to the Project 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 CDC's five -year Implementation Plan. The City Council has heretofore given and made, and the CDC and the City hereby reaffirm and declare, such consents and determinations with respect to the construction of a new sewer pipeline to serve existing users and anticipated General Plan growth in the City (the "Eastside Trunk Sewer Project "). Phase I of the Eastside Trunk Sewer Project (the "Phase I Improvements ") will install a sanitary sewer pipeline from the existing sewer pump station on J. Rodgers Lane, across Costeo'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. The Phase I Improvements lie entirely within the Project Area. C. The Phase I Improvements are estimated to cost $10.2 million. Eighty -eight percent (88 %) of the service area for the Phase I Improvements lies within the Project Area, and the remaining 12% of the service area lies outside the Project Area. D. 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 Project Area. 1 10117800 80121/0003 E. In order to enable the City to undertake the construction of the Phase I Improvements for the benefit of the Project 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 this Agreement providing for the CDC to advance a portion of the costs relating to the construction of the Phase I portion of the Eastside Trunk Sewer Project. Agreements THE CDC AND THE CITY HEREBY AGREE AS FOLLOWS: 1. The City shall cause to be designed, constructed and installed within the Project Area the Phase I Improvements of the Eastside Trunk Sewer Project, including 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. The City shall cause the Phase I Improvements to be commenced as soon as.feasible after the execution of this Agreement and shall ensure that the Phase I Improvements are completed in a timely manner. 2. 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 Eight Million Nine Hundred Seventy -Six Thousand Dollars ($8,976,000) (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. The CDC shall make the payments specified above to the City in the manner provided herein from any funds available to the CDC for such purpose, including without limitation the proceeds of any bonds issued by the CDC, loans and Tax Increments from the Project Area. After first making adequate provisions for the annual payment of principal and interest due on any bonds or other prior indebtedness of the CDC incurred to carry out the Project and for which Tax Increments have been pledged or committed, the CDC shall pay the City the CDC's Contribution amounts as set forth above as funds are available to the CDC or in such other amounts and times as the parties may agree. 3. 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, 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. Failure by either party to perform its obligations hereunder shall constitute a default under this Agreement, and the other party may institute legal action to cure, correct or remedy such default, to recover damages for such default or to obtain any other remedy, including injunctive or declaratory relief, consistent with the purpose of this Agreement. 2 10117800 80121/0003 5. This Agreement constitutes an indebtedness of the CDC incurred in carrying out the Project, and a pledging of Tax Increments from the Project to pay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670 et seq. of the Health and Safety Code; provided, however, that such pledge of Tax Increments shall always be subordinate and subject to the right of the CDC to pledge or commit Tax Increments from the Project to repay bonds or other indebtedness incurred by the CDC in carrying out the Project. 6. Pursuant to Section 895.4 of the Government Code, the CDC and City agree that each will assume the full liability imposed upon it or any of its officers, agents or employees for injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement and each party agrees to indemnify and hold harmless the other party for any loss, costs or expense that may be imposed upon such other party by virtue of Sections 895.2 and 895.6 of the Government Code. 7. This Agreement and the obligations of the City and the CDC hereunder shall terminate upon (a) the completion of the Phase I Improvements by the City, (b) the CDC's payment of the CDC's Contribution as set forth in Section 2, and (c) reimbursement to the CDC of amounts collected by the City for the Phase I Improvements from the PFFP, to the extent any such funds may become available. IN WITNESS WHEREOF, the CDC and the City have executed this Agreement as of the date first above written. COMMUNITY DEVELOPMENT CITY OF ROHNERT PARK COMMISSION OF THE CITY OF J14013RAZIM, 11 By: Chairman Attest: By: Secretary 10117800 80121/0003 IM Attest: Mayor City Clerk Approved as to forms City Attorney