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2007/09/11 City Council Resolution 2007-148RESOLUTION NO. 2007 -148 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA, AUTHORIZING AND APPROVING AMENDMENT NO. 2 TO THE PARKING LOT IMPROVEMENT AGREEMENT AMONG THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK, ( "CDC ")AND ARBORS ROHNERT PARK APARTMENTS L.P. ( "ARBORS L.P ") WHEREAS, on September 13, 2005, the City Council of the City of Rohnert Park approved Resolution No. 2005 -289 approving a Parking Lot Improvement Agreement (the "Agreement ") by and between the City, the CDC and Developer which allows for the disposition of an existing Public Safety Parking Lot to Developer for the Arbors Affordable Housing project in exchange for improvements to an adjacent City owned parcel for the development of a new Public Safety Lot; and WHEREAS, on September 13, 2005, the CDC approved Resolution 2005 -14 approving the Parking Lot Improvement Agreement; and WHEREAS, an Assignment and Assumption Agreement, dated September 29, 2005, assigned all of Developers' rights and obligations under, among other things, the Affordable Housing Agreement, and all attachments thereto (including the Original Agreement) to Arbors Rohnert Park Apartments L.P., and Arbors L.P. assumed all of Developer's rights, obligations, covenants, and agreements thereunder, and expressly agreed to be bound by, and perform and observe all terms, covenants, and conditions applicable to Developer as if Arbors L.P. had been the original Developer under those agreements; and WHEREAS, the agreement was amended on September 26, 2006 per City Council Resolution 2006 -242 and CDC Resolution 2006 -23, to reflect additional improvements requested by City staff; and WHEREAS, Arbors L.P. is requesting that we amend the agreement to reduce the required warranty bond period of four (4) years to a period of one (1) year. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Rohnert Park hereby authorizes and approves Amendment No. 2 to the Agreement by and between the City, CDC and Arbors L.P.; and BE IT FURTHER RESOLVED that Amendment No. 2 includes the revised warranty bond requirement of a period of one (1) year commencing with the notice of completion; and BE IT FURTHER RESOLVED that the City Manager, or his or her designee, is hereby authorized and directed to execute the Amendment in the form attached hereto as Exhibit A, subject to any minor conforming, technical, or clarifying changes approved by the City Attorney, and to take such actions necessary to adopt this amendment. DULY AND REGULARLY ADOPTED this I I" day of September, 2007. ATTEST: AMENDMENT NO. 2 TO PARKING LOT IMPROVEMENT AGREEMENT This Amendment No. 2 to the Parking Lot Improvement Agreement is made and entered into this day of , 2007, by and between the City of Rohnert Park, ( "City "), the Community Development Commission of the City of Rohnert Park, ( "CDC ") and Arbors Rohnert Park Apartments L.P., ( "Arbors L.P. ") WHEREAS, on September 13, 2005, City along with the CDC entered into a Parking Lot Improvement Agreement with Developer, per Council Resolution 2005 -289 and CDC Resolution 2005 -14, for the disposition of an existing Public Safety Parking Lot to Arbors L.P. for the Arbors Affordable Housing Project in exchange for improvements to an adjacent City owned parcel for the development of a new Public Safety Lot; and WHEREAS, an Assignment and Assumption Agreement, dated September 29, 2005, assigned all of Developers' rights and obligations under, among other things, the Affordable Housing Agreement, and all attachments thereto (including the Original Agreement) to Arbors Rohnert Park Apartments L.P., and Arbors L.P. assumed all of Developer's rights, obligations, covenants, and agreements thereunder, and expressly agreed to be bound by, and perform and observe all terms, covenants, and conditions applicable to Developer as if Arbors L.P. had been the original Developer under those agreements; and WHEREAS, Amendment No. 1 was adopted on September 26, 2006 per Council Resolution 2006 -242 and CDC Resolution 2006 -23, approving and authorizing additional improvements requested by City staff; and WHEREAS, the agreement requires that the quality and workmanship of the improvements be guaranteed for a period of four (4) years by Arbors L.P. and Arbors L.P. is required to furnish and deliver a warranty bond for a period of four (4) years; and WHEREAS, according to the terms of the agreement Arbors L.P. is required to furnish and deliver a warranty bond for a period of four (4) years following the completion and acceptance of the improvements; and WHEREAS, the purpose of providing the warranty bond is to guarantee the work specified in the agreement against any defective work or labor done, or defective materials furnished ; and WHEREAS, Arbors L.P. has submitted a request to reduce the required amount of time for the warranty bond from four (4) years to one (1) year; and WHEREAS, the City is willing to accept a one (1) year warranty bond; and NOW, THEREFORE, City and Arbors L.P. mutually agree as follows: 1. SECTION 4.4 OF THE AGREEMENT IS AMENDED AS FOLLOWS: 1. Warranty Bond. Developer shall furnish and deliver a warranty bond in an amount to match the dollar amount of the Work upon acceptance of the Work and prior to release of the Performance Bond. The bond shall be in a form acceptable to the City Attorney and City's insurance carrier and shall guarantee and warranty the Work for a period of one (1) year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished. 2. SECTION 4.5 OF THE AGREEMENT IS AMENDED AS FOLLOWS: 2. Warranty Period; Repair and Reconstruction. Without limiting the foregoing, Developer- expressly warrants and guarantees all Work performed under this Parking Agreement and all materials used in the Work for a period of one (1) year after final acceptance in accordance with Section 3.3. If, within this one (1) year period, any Work or part of any Work installed or constructed, or caused to be installed or constructed, or caused to be installed or constructed by Developer, or any of the work done under this Parking Agreement, fails to fulfill any of the requirements of the Plans or this Parking Agreement, Developer shall, without delay and without cost to City, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Work or Improvement to the satisfaction of the City Engineer. Should developer fail to act promptly or in accordance with this requirement, or should the exigencies of the situation require repairs, replacements or reconstruction to be made before Developer can be notified, City may, at its option, make the necessary repairs, replacements or perform the necessary reconstruction and Developer shall pay to the City upon demand the actual cost of such repairs, replacements or reconstruction. 3. All remaining provisions of the Agreement and its Amendment shall remain in force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF ROHNERT PARK: DEVELOPER: By: ATTEST: CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY Per Reso. No. adopted by the City Council on ` ARBORS ROHNERT PARK L.P., a California limited partnership : Name: Title: COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK: By: (Title) ATTEST: reta ry APPROVED AS TO FORM: General Counsel Per CDC Reso. No. __ adopted by the Commission on 2