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2014/11/25 City Council Resolution 2014-160RESOLUTION NO. 2014 -160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (THE "AUTHORITY ") TO FORM A COMMUNITY FACILITIES DISTRICT WITHIN THE TERRITORIAL LIMITS OF THE CITY OF ROHNERT PARK AND RELATED MATTERS WHEREAS, the City of Rohnert Park (the "City ") is a municipal corporation duly organized and existing under and by virtue of the laws of the State of California (the "State "); and WHEREAS, the California Statewide Communities Development Authority (the "Authority ") is a California joint- exercise of powers authority lawfully formed and operating within the State pursuant to an agreement (the "Joint Powers Agreement ") entered into as of June 1, 1988 under the authority of Title 1, Division 7, Chapter 5 (commencing with Section 6500) of the California Government Code; and WHEREAS, the City is a party to the Joint Powers Agreement and by virtue thereof a member (a "Program Participant ") of the Authority; and WHEREAS, the Joint Powers Agreement was entered into to establish the Authority as an agency authorized to issue bonds to finance projects within the territorial limits of its Program Participants; and WHEREAS, the Joint Powers Agreement authorizes the Authority to undertake financing programs under any applicable provisions of State law to promote economic development, the stimulation of economic activity, and the increase of the tax base within the jurisdictional boundaries of its Program Participants; and WHEREAS, the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 (beginning with Section 53311) of the Government Code of the State (the "Act ") is an applicable provision of State law available to, among other things, finance public improvements necessary to meet increased demands placed upon local agencies as a result of development; and WHEREAS, there is a development project in the City owned by Vast Oak Properties L.P., a California limited partnership, and University District LLC, a Delaware limited liability company (respectively, the 'Development Project" and the "Developer "); and WHEREAS, the City and the Developer have entered into an Amended and Restated Development Agreement dated April 22, 2014, which, among other things, allows Developer at its sole discretion to elect to form a community facilities district through the Authority so long as the Authority establishes the community facilities district in accordance with the City's goals and polices as set forth in its Resolution 2006 -076 (attached as Exhibit A) 2014 -160 (1) and such that its terms are in compliance with Section 4.04 of the Amended and Restated Development Agreement (attached as Exhibit B); and WHEREAS, the Developer has exercised its sole discretion and wishes to form the community facilities through the Authority and City respects this discretion, as outlined in the Amended and Restated Development Agreement; and WHEREAS, the Development Project will promote economic development, the stimulation of economic activity, and the increase of the tax base within the City; and WHERAS, both the Authority and the City are "local agencies" under the Act; and WHEREAS, the Act permits two or more local agencies to enter into a joint community facilities agreement to exercise any power authorized by the Act; and WHEREAS, entering into such an agreement with the Authority to authorize the Authority to form a community facilities district within the territorial limits of the City to finance public improvements and fees required of the Development Project is consistent with the City's commitments in the Amended and Restated Development Agreement; and WHEREAS, a form of Funding, Acquisition, Improvement and Public Facilities Fee Credit Agreement (the "Acquisition Agreement ") between the City, the Authority and the Developer has been presented to the City Council, as Exhibit C, and is on file with the City Clerk; and WHEREAS, nothing herein constitutes the City's approval of any applications, Development Project entitlements and /or permits, and such, to the extent required in the future, are subject to and contingent upon City Council approval following, to the extent applicable, environmental review in compliance with the California Environmental Quality Act ( "CEQA "); and WHEREAS, nothing herein affects, without limitation, requirements for and /or compliance with any and all applicable and /or necessary improvement standards, land use requirements or subdivision requirements relating to the Development Project or any portion thereof, which obligations are and shall remain independent and subsisting; and WHEREAS, the City Council is fully advised in this matter; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Rohnert Park that it does hereby find, determine, declare and resolve as follows: Section 1. The City hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to municipal affairs of the City and the statements, findings and determinations of the City set forth in the recitals above and in the preambles of the documents approved herein are true and correct and material to the adoption of this resolution. 2014 -160 (2) Section 2. This resolution shall constitute full "local approval," under Section 9 of the Joint Powers Agreement, for the Authority to undertake and conduct proceedings in accordance herewith and under the Act to form a community facilities district (the "Community Facilities District ") with boundaries substantially as shown on Exhibit D, attached hereto and incorporated by this reference, and to authorize a special tax and to issue bonds with respect thereto. Section 3. The Joint Powers Agreement, together with the terms and provisions of this resolution, shall together constitute a joint community facilities agreement between the City and the Authority under the Act, as, without this resolution, the Authority has no power to conduct proceedings under the Act to form the Community Facilities District. Adoption by the Commission of the Authority of the Resolution of Intention to form the Community Facilities under the Act shall constitute acceptance of the terms hereof by the Authority. Section 4. This resolution and the agreement it embodies are determined to be beneficial to the residents of the City, and of the future residents of the area within the Community Facilities District. Section 5. The City has adopted Local Goals and Policies as required by Section 53312.7 of the Act. The Amended and Restated Development Agreement requires the use of the City's Local Goals and Policies, as outlined in Resolution 2006 -276 and attached as Exhibit A, in connection with the formation and administration of any Community Facilities District. The City hereby agrees that the Authority may act in lieu of the City under those Local Goals and Policies in forming and administering the Community Facilities District. The City also agrees that in lieu of the letter of credit described under Section 2 of the Local Goals and Policies, and unless specifically modified by Council Resolution, for the first bond issue, the Authority will require: • A value to lien (VTL) ratio of not less than 5:1 on undeveloped property • At least 2 years of capitalized interest • A reserve fund equivalent to the Internal Revenue Code maximum For any subsequent bond issues, the City Manager and staff from the Authority may agree upon alternative bond security measures provided that in no case shall bond security be less than is required by the Act. The Authority also agrees that with respect to all matters other than the letter of credit described under Section 2 of the Local Goals and Policies, that it will comply strictly with the City's Local Goals and Policies as outlined in Resolution 2006 -276 in forming and administering the Community Facilities District and in the issuance of bonds and that no waiver or exception to any of those Local Goals and Policies will be approved without prior written consent of the City. Section 6. Pursuant to the Act and this resolution, the Authority may conduct proceedings under the Act to form the Community Facilities District and to have it authorize the financing of the facilities and fees set forth on Exhibit E, attached hereto and incorporated by this reference, with first priority given to retiring the lien established by the City's Assessment District 2005 -01. All of the facilities whether to be financed directly or through fees are facilities that have an 2014 -160 (3) expected useful life of five years or longer and are facilities that the City is authorized by law to construct, own or operate or to which they may contribute revenue. The facilities are referred to herein as the " hmprovements" and the Improvements to be owned by the City are referred to as the "City Improvements ". The fees are referred to as the "Fees" and the Fees paid or to be paid to the City are referred to as the "City Fees ". Section 7. The City Council certifies to the Commission of the Authority that all of the City Improvements including the improvements to be constructed or acquired with the proceeds of City Fees are necessary to meet increased demands placed upon the City of Rohnert Park as a result of development occurring or expected to occur within the Community Facilities District. Section 8. The Authority will apply the special tax collections initially as required by the documents under which any bonds are issued; and thereafter to the extent not provided in the bond documents, may pay its own reasonable administrative costs incurred in the administration of the Communities Facility District. The Authority will remit any special revenues remaining after the final retirement of all bonds to the City. The City will apply such special Wrevenues it receives for authorized City Improvements or City Fees and its own administrative costs only as permitted by the Act. The City and the Authority acknowledge that nothing in this Resolution prevents the City from recovering its costs associated with supporting the formation of the community facilities district and /or the review, permitting, inspection, acquisition audit and acquisition of City Improvements and /or the administration of the City's fee programs through means other than the collection of special taxes. Section 9. The Authority will administer the Community Facilities District, including employing and paying all consultants; annually levying the special tax and all aspects of paying and administering the bonds, and complying with all State and Federal requirements appertaining to the proceedings including the requirements of the United States Internal Revenue Code. The City will cooperate in a commercially reasonable manner with the Authority in respect to the requirements of the Internal Revenue Code as related to the City Improvements and City Fees, and to the extent information is required of the City to enable the Authority to perform its disclosure and continuing disclosure obligations with respect to the bonds, although the City will not participate in nor be considered to be a participant in the proceedings respecting the Community Facilities District (other than as a party to the agreement embodied by this Resolution) nor will the City be or be considered to be an issuer of the bonds. Section 10. In the event the Authority completes issuance and sale of bonds, and bond proceeds are available to finance the Improvements, the Authority shall establish and maintain a fund to be known as the "City of Rohnert Park University Park Community Facilities District Acquisition and Construction Fund" (the "Acquisition and Construction Fund "). The portion of the bond proceeds which is intended to be utilized to finance the Improvements and Fees shall be deposited in the Acquisition and Construction Fund. The Acquisition and Construction Fund will be available both for the City Improvements and City Fees. As described in Section 6, first priority for bond proceeds deposited in the Acquisition and Construction Fund will be retiring the lien established by the City's Assessment District 2005 -01. 2014 -160 (4) Section 11. As respects the Authority, the City agrees to fully administer, and to take full governmental responsibility for the acquisition of the City Improvements and for the administration and expenditure of the City Fees including but not limited to environmental review, approval of plans and specifications, bid requirements, performance and payment bond requirements, insurance requirements, contract and construction administration, staking, inspection, acquisition of necessary property interests in real or personal property, the holding back and administration of retention payments, punch list administration, and the Authority shall have no responsibility in that regard. The City reserves the right, as respects the Developer, to require the Developer to contract with the City to assume any portion or all of this responsibility. As described in Section 8, the City reserves the right to collect its reasonable costs for all activities, including consultant costs and administrative costs, through means available to it including but not limited to those described in the Amended and Restated Development Agreement. Section 12. The City agrees to indemnify and to hold the Authority, its other members and its other members' officers, agents and employees, and the other local agencies, and their offices, agencies and employees (collectively the "Indemnified Parties ") harmless from any and all claims, suits and damages (including costs and reasonable attorney's fees) arising out of the design, engineering, construction and installation of the City Improvements and the improvements to be financed or acquired with City Fees. The City reserves the right, as respects the Developer, to require the Developer to assume by contract with the City any portion or all of this responsibility. Consistent with the requirements of Section 4.04 of the Amended and Restated Development Agreement, Developer is obligated to and has agreed to assume all of this responsibility pursuant to the concurrent execution of the Acquisition Agreement, which is more specifically described in Paragraph 15. Section 13. As respects the Authority, the City agrees that - once it determines that the City Improvements are constructed according to the approved plans and specifications, and the City and the Developer have put in place their agreed u p o n arrangements for the funding of maintenance of the City Improvements — City will accept ownership of the City Improvements, take maintenance responsibility for the City Improvements and indemnify and hold harmless the Indemnified Parties to the extent provided in the preceding paragraph from any and all claims etc., arising out of the use and maintenance of the City Improvements. The City reserves the right, as respects the Developer, to require the Developer by contract with the City to assume any portion or all of this responsibility. Consistent with the requirements of Section 4.04 of the Amended and Restated Development Agreement, Developer is obligated to and has agreed to assume all of this responsibility pursuant to the concurrent execution of the Acquisition Agreement, which is more specifically described in Paragraph 15. Section 14. The City acknowledges the requirement of the Act that if the City Improvements are not completed prior to the adoption, by the Authority Commission, of the Resolution of Formation of the Community Facilities District, the City Improvements must be constructed as if they had been constructed under the direction and supervision, or under the authority of, the City. The City acknowledges that this means all City Improvements must be constructed under contracts that require the payment of prevailing wages as required by Section 1720 and following of the Labor Code of the State of California. The Authority makes no representation that this requirement is the only applicable legal requirement in this regard. The City reserves the right, as respects the Developer to assign appropriate responsibility for 2014 -160 (5) compliance with this paragraph to the Developer. Consistent with the requirements of Section 4.04 of the Amended and Restated Development Agreement, Developer is obligated to and has agreed to assume all of this responsibility pursuant to the concurrent execution of the Acquisition Agreement, which is more specifically described in Paragraph 15. Section 15. The form of the Acquisition Agreement, attached as Exhibit C and incorporated by this reference, is hereby approved, and the City Manager or such officer's designee (the "City Manager ") is authorized to execute, and deliver to the Developer and the Authority, the Acquisition Agreement on behalf of the City in substantially similar form, with such changes as shall be approved by the City Manager after consultation with the City Attorney and the Authority's bond counsel, such approval to be conclusively evidenced by the execution and delivery thereof. Section 16. After completion of the City Improvements and appropriate arrangements for the maintenance of the City Improvements, or any discrete portion thereof as provided in Section 53313.51 of the Act and in the Acquisition Agreement, to the satisfaction of the City, and in conjunction with the City's acceptance thereof, acquisition of the City Improvements shall be undertaken as provided in the Acquisition Agreement. Section 17. The City hereby consents to the formation of the Community Facilities District in accordance with this Resolution and consents to the assumption of jurisdiction by the Authority for the proceedings respecting the Community Facilities District with the understanding that the Authority will hereafter take each and every step required for or suitable for consummation of the proceedings, the levy, collection and enforcement of the special tax, and the issuance, sale, delivery and administration of the bonds, all at no cost to the City and without binding or obligating the City's general fund or taxing authority. Section 18. The terms of the Agreement embodied by this Resolution may be amended by a writing duly authorized, executed and delivered by the City and the Authority, except that no amendment may be made after the issuance of the bonds by the Authority that would be detrimental to the interests of the bondholders without complying with all of the bondholder consent provisions for the amendment of the bond resolutions, bond indentures or like instruments governing the issuance, delivery and administration of all outstanding bonds. Section 19. Except to the extent of the City's agreement to take responsibility for the ownership of the City Improvements, no person or entity, including the Developer shall be deemed to be a third party beneficiary of this Resolution, and nothing in this resolution (either express or implied) is intended to confer upon any person or entity other than the Authority and the City (and their respective successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Resolution. Section 20. This Resolution shall remain in force until all bonds have been retired and the authority to levy the special tax conferred by the Community Facilities District proceedings has ended or is otherwise terminated. Section 21. The City Council hereby authorizes and directs the City Manager and other appropriate City staff to cooperate with the Authority and its consultants and to do all things 2014 -160 (6) reasonably necessary and appropriate to carry out the intent of this Resolution and the Community Facilities District financing, to execute any and all certificates and documents in connection with the bond issuance and to execute any and all Acquisition Agreements, as shall be approved by the City Manager after consultation with the City Attorney and the Authority's bond counsel. Section 22. The City Council hereby approves delivery of a certified copy of this Resolution to the Authority. Section 23. This Resolution shall take effect upon its adoption. DULY AND REGULARLY ADOPTED this 25th day of November, 2014. ATTEST: VAnne M. Buergler, City C' rk CITY OF ROHNERT PARK Jose p.... CalIinan, Wrayo r i ;t:i.rrfKII-1, . �t[�� MACicENZIF•: STAFFORD: AIIANOTLI: r•ALLINAN: V\ C AYES: ( L\ ] A0EX At SENT. 1 ) Ass-r.AiN: C 1 2014 -160 (7) RESOLUTION NO. 2006-27e A RESOLUTION OF'THE CITY COTJNCIL OF THE CITY OF ROHNERT PARI( APPROVING A STATEMENT OF'LOCAI GOALS A¡{D POLICIES CONCERNING TIIE USE OF'TTIE MELLO.ROOS COMMUNITY FACILITIES ACT OF 1982 wrrEREAS, pursuant to section 5 3312.7 of the california Govemment code a local agency may initiate proceedings to establish a Community Facilities Dishict (CFD) only if it hasfirst considered and adopted Iocal Goals and policies conceming the use of ihe Mello-i.oos Community Facilities Act of 1982; and wrrEREAS, a cFD is one of three (3) approved principal financing mechanisms utilizedin the City of Rohnert Park's Public Facilities Finance plin; and WHEREAS' the city of Rohnert park (city) has agreed to use its best effort to adoptLocal Goals and Policies within ninety (90) days following the Effective Date of the city's Development Agreement with the university District LLC and vast oak properties L.p; and WHEREAS, the Local Goals and Policies are designed to ensure that CFDS created are made for the public good and compry with all rerevant rawJ, acts una ugr"",n"r,tr; -J -- WHEREAS, the Goals and poricies may be amended or suppremented by city councilresolution at any time, and approval does not obligate the city council in any wãy to create CFDs if they meet fhe parameters set lorth; and BE IT RESoLVED by the city councir of rhe city of Rohnert pa.rk that ir does hereby authorize and approve The city of Rohnert park statement oflocal Goals and policies concerning the use of the Mello-Roos community Facilities Act of lgg2,as outlined in Exhibit"4" attached. DULY AND REGULARLY ADOPTED this 28trr day of Noveuber , 20e6 ATTEST: Mayor Tim Snirh CITYOFROHNERT PARK Mry-'BREUE:âüE FLoRES:AYE,tCl(ElEE:âyE VÞAK.üARüilEZ:ABSEIIT Sl'ülH:âXE AYES; ({) iloEs: (0) ABSEIIT: (1} ABSIAðI: (0) EXIIIBIT "A" CITY OF ROHNERT PARK STATEMENT OF LOCAL GOÄLS AND POLICIES CONCERNING THE USE OFTHE MELLO-ROOS COMMU¡ÍITY FACILITIES ACT OF T982 Pursuant to Section 53312.7 of lhe Califomía Govemment Code, the City Council of Rohnert park (hereafter the "City Council') hereby states its goals and poticies conceming the use of the Mello- Roos Communit¡r Facilities Act of 1982, Section 53311, et seq. of the Califomia Government Code lhereafter the 'Acf'), in providing adequate public infi:astructure improvements for the city of Rohnert Park (the "Ci$') and in refunding existing debt on land within the City. In addition, the Act may be used to provide for the maintenance, repair, reconstruotion and replacer.nent of any of the foregoing infrastructure improvements. The following goals and policies shall apply to each community facilities district (a "CFD") hereafter formed by the City. Any policy or goal stated herein may be supplemented or amended or deviated from, and new goals and policies may be added hereto, from time to time upon a determination by the City Council that such supplement, amendment, deviation or addition is necessary or desirable. Any policy or goal stated herein shall be deemed amended or supplemented in the event, and as ofthe date, ifeve¡ that such amendment or supplement is required to ensure compliance with: a. Development Agreements entered into or amended by the city in accordance with. Govemment Code Section 65864 et. seq.; b. The Act; c. Any other lar s offhe State ofCalifornia; or d. Laws of the United States of America. 1. Priority for Financing Yarious Kinds ofPublic Facilities Through the use of the Act. It is the policy of the city to give priority to the financing, through the use of the Act, as lollows: a) Refinancing of pre-existing assessment liens and refunding of any bonds secured by said liens as these may affect land within the CFD; b) Financing ofthe design, construction and/or acquisition of public infrastructure identified in the city's Public Facilities Finance Plan (PFFp) as it mây be amended from time to timq as such inûastructure rnitigates impacts caused by development occurring within the CFD, and to the exlent that such inû:astructure may lawfully be financed under the Act; and c) Financing of the design, construction and/or acquisition of other public in&astructure improvønents directly benefiting the city, which improvements may include, but are not limited to, in-traik improvements, park improvønents, storm drainage improvements, public roadways and sidewalks. It is also the policy ofthe City to assist in the financing of the design, construction and/or acquisition ofother public facilities, through the use ofJoint Public Facilities Financing Agreements, when to do so will, in the sole discretion of the City Council acting as the legislative body of the affected CFD, rêsult in a savings to residents or Foperty owners, for ixample, ùy reducing Losts of bond issuance Rohr¡ert Park Goals & Polic¡es 10_27_06 and/or administr¿tive expenses. Such joìnt financing assistance shall be considered when jt does not interfe¡e with the financing of public infrastructure improvements directty benefiting the city. 2. Credit Quality Required ofBond Issues, Including Criteria in Evaluating the Credit Quality. It is the policy ofthe City that prior to the issuance ofany CFD bonds, the following conditions shall be met: a) Maximum special tax ievenues from the CFD are reasonably expected to provide at least one hundred ten percent (110%) debt service coverage for each year ofthe term ofsuch bonds; b) The bond issuaûce document establishes, and includes a covenant to cause special taxes to be levied in an amount sufficient to maintain, for the te¡m of such bonds an adequately firnded reserve fund securing such bonds in accordance with the regulations of the l¡temal Revenue Service (IRS). In addition, in cases when development interests (Proponents) petition for CFD formation, the City may require that Proponents provide a letter ofcredit or other credit enhancement instrument in form and amount reasonably satisfactory to the City which is sufficient to ensure payment ofthe principal and inteiest payments on the cFD bonds for up to two (2) years following issuance theråof (computed without regard for the availability of capitalized interest or amounts on deposit ina debt service reserve fund). Further, it is the policy of the City to comply with all provisions of the Act including, but not limited to, Section 53345.8, as such Section may be amended ffom time to time. 3. steps to Ensure that Prospective Property Purchasers Are Fully rnformed.A,bout Their Taxpaying Obligations. It ii ìhe goal of the City that the CFD Proponents provide actual and conspicuous ngtice to all potential homeowners, taxpayers residing within, or taxpayers owning properfy within, the bounda¡ies ofa CFD. ln order to comply with this goal, it is the policy of the City that: a) All notices provided by the CFD Propo¡ents shall be in compliance with applicable legal requirements, including, without limitation, applicable provisions of Government code Section 53341.5; b) The form ofsuch notice shall be acceptable to the City and shall at a minimum provide a comprehensive listing of all the fees, taxes and assessments to be charged to any and all owners ofproperty within the CFD; c) The proposed forrn of such notice shall be submitted to the City, for review, at the same time that petitions requesting formation ofthe CFD a¡e submitted; and d) The Pr.oponents shall make revisions to the proposed form of notice as requested by the City; It is the policy of the City to refrain from the issuance of any CFD bonds until the aforementioned notice is approved. It is firther the policy ofthe City that: Rohnert Park coals & Polides I O-Zz-Oé a) In conformance with the Act, the Proponents shall provide potential property owners with a written and itemized notice of such projected costs and the mannei in which thev wiÌì be charged, which notice the potential propert¡r owner will sign; b) The Proponents shall provide a copy òf each signed notice to the city,s community Development Director; c) The Proponents shall retain a copy ofsuch notice in Proponents' files for at least fifteen (15) years following the date ofsuch notice. It is further the policy of the City to provide Section 53340.2 notice of special tax to any individual rèquesting such hotice or any owner ofproþerty subject to a special tax leiied by the City within five (5) working days ofreceivìng a request fo¡ such notice. 4. Criteria for Evaluating the Equity of Tax Allocation Formulas, and Concerning Desirable and Maximum Amounts of Special Tax- It is the þoal of the City that each taxpayer residing within, or owning property within, the boundariesof any cFD hereafter established by the city pay special øxes which generally reflect such taxpayer's fair and reasonable share of his or her projected benefit from, uni,¡o. b..id".r upon, thefaciliúes to be constructed and./or maintained or ofány refunding of existing debt \Ã,ithin the'CFD by such CFD. It.is the goal of the Çi.tf that maximum special taxes on residential owner-occupied p¡opety, v/hen taken together with (a) ad valorem taxes, (b) all other special taxes levied pursuant io the Act and(c) all assessments applicable to such property, do not exceed in any year l.isy, of the greater ofthe parcel'S assessed value or a ¡easonable estimate ofthe sale price for the parcel and the iesidential or commercial unit to be constructed thereon- Iri order to.comply with this goal and when the Proponent requests that a "reasonable estimate" be used to calculate the maximum allowable special tax it is the policy of the city that: a) At least 120 days priorlo the anticipated election date, as defined in the Act, the proponent, at its cost, shall submit its methoá of estimating value for approval by the City; b) At least 100 days prior to the anticipated election date, the City shall provide the proponent with requested changes to said method; and c) At least 30 days prior to the anticipated election date, the Proponent, at its cost, shall provide the City with the estimated values to be used in making ìhe final determinatior of the maximum special tax. It is the policy of the City to refrain from the issuance of any CFD bonds until the afo¡ementioned appraisal process is satisfactorily completed It is fi¡rther the policy of the City that the rate method of apportionment for special tax levíed pursuant to the Act be drafted to allow a property owner to permanently satisfu thé special tax (and remove the lien thereof) as to any taxable parcel by prepayment pursuant to Section 53344 of theAct. It is further the policy of the Cìty not to permit the escalation of.maximum taxes. Rohnel Pdk Goals & Policies 10_2?_06 5. Definitions, standards, and Assumptions for Appraisals Required by section 53345.g. It is the goal of the City to conform, as nearly as practicable,.to the Califomia Debt and Investment Advisory Commission's Appraisal Standards for Land-secured Financings, as such standards may be amended from time to time, provided, however, that the City Council may additionally amend such standards from time to time as it deems necessary and reasonable, in its own discretion, to provide needed infrastructure improvements within the City, while still accomplishing the goals set forth herein. 6. Standard for Advance ofExpenses; Reimbursement. It is the policy of the Ciry that the Proponents of the CFD shall advance to the City actual out of pocket costs of formation of the CFD, sale of CFD bonds, and other costs and expenses associated with the CFD ("Advanced Costs"). Such Advanced Costs may include, without limitation, legal, financial, appraisal and engineering costs and expenses associated v/ith: a) Formation oflthe CFD; b) Determination ofthe rate and method ofapportionment and lely ofthe special tax; c) Review and approval ofthe plans and specifications for construction ofthe ímprovements; d) Determination of the value of the property; e) Sale ofCFD bonds; and f) Any other cosls or expenses reasonably incurred in connection with the CFD. It is fi¡rther the policy of the City that all such Advanced Costs, together with those reasonable out- of-pocket legal, engineeiing, and financial services costs incurred by Proponent directly related to establishment and implementation of the CFD, which may lawfirlly be financed under the Mello- Roos Act and other applicable law, shall be reimbursed ûom proceeds ofthe sale of CED bonds in accordance with the provisions of the Reimbu¡sement Agreement described below. However, in the event that the City is unable tó make legally required findings in connection with the formation of the CFD and the issuance of CFD bonds for any reason, the City shall not be liable for any costs incurred by Proponents. It is the policy of the city that when the proceeds of cFD bonds will be used for either reimbursement ofcosts i¡curred by Proponents or acquisition of facilities constructed by Proponents that City and Proponents will enter into a either a Reimbursement or Fundirig and Acquisition Agreement, The form of said agreernents shall be reasonably acceptable to the City,s bondiounsel setting forth, among other things, the procedures for and mechanisms by which ?ioponents will be reimbursed, out of available proceeds of the CFD bonds, for improvements construcìed and/or paid for by Proponents. 7. Issuance of Bonds It is the goal of the City that the amounts, timing and terms of the issuance and sale of the CFD bonds shall be coordinated, as closely as possible, with the phasing of the development of the property to provide financing for the improvements in a timely fashion to meet the needs of the respective phases of development ofthe project. Ifnecessary, the CFD bonds may be issued in series to help correspond to such phases. The amounts, timing and te¡ms of the issuance and sale of the Rohnef Park Goâls & Policies 10_27_06 CFD bonds shall be dete¡mined by the City, in consultation with the Developer, and the Ci{y's bond counsel, {inancial advisors anlor underwriters. It is the policy of the City that the Proponents shall commit in wriling at least 30 days before the election date to the following: a) To assist the City in the issuance of the CFD bonds by providing financial and development information reasonably required for due-dìligence and disclosures relating to the issuance of the CFD bonds; b) To provide for any required continuing disclosures under applicable securities laws. Rohnen Palk Goab & Policies 10_r_06 OAK #4820-4798-3630 v1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Rohnert Park 130 Avram Avenue Rohnert Park, California 94928-2486 Attention: City Clerk ) ) ) ) ) ) ) ) (Space Above This Line for Recorder's Use Only) Exempt from recording fee per Gov. Code § 27383. FUNDING, ACQUISITION, IMPROVEMENT AND PUBLIC FACILITIES FEE CREDIT AGREEMENT BY AND BETWEEN THE CITY OF ROHNERT PARK AND THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY AND UNIVERSITY DISTRICT LLC AND VAST OAK PROPERTIES L.P. THIS FUNDING, ACQUISITION, IMPROVEMENT AND PUBLIC FACILITEIS FEE CREDIT AGEEMENT ("Agreement") is made and entered into on this ______ day of ______________ 201____ ("Effective Date") among University District LLC and Vast Oak Properties L.P, ("Developer"), the Ca lifornia Statewide Communities Development Authority (“Authority”) and the CITY OF ROHNERT PARK, a California municipal corporation ("City"). RECITALS A. On April 22, 2014, the City Council of the City of Rohnert Park adopted Ordinance 878 approving a Develop ment Agreement (“Development Agreement”) between the City of Rohnert Park, and the Developer. B. The Development Agreement provides that the Developer, at its sole discretion, may elect to form a Community Facilities District (“CFD”) through the Association of Bay Area Governments or the Authority provided certain conditions are met. C. The Developer has applied to the Authority for the financing of certain public capital improvements, and certain governmentally-imposed development fees (collectively, the “Acquisition Improvements”). The fees will themselves finance public capital improvements. The public capital Acquisition Improvements are to be owned and operated by the City, and the financing is to be accomplished through a CFD which will be administered by the Authority under and pursuant to the Mello-Roos Community Facilities Act of 1982 – California Government Code Sections 53311 and following (the “Act”). Exhibit C to Resolution 2 D. On the 25th day of November, 2014, the City Council of the City of Rohnert Park adopted Resolut ion No. 2014 - ____, Authorizing the California Statewide Communities Development Authority (Authority) to Form a Community Facilities District within the Territorial Limits of the City of Rohnert Park and Related Matters (“Resolution”). E. On the ____ day of __________, 20__, the Authority formed the CFD and, on the same date, a landowner election was conducted in which all of the votes were cast unanimously in favor of conferring the Community Facilities District authority on the Authority Commission. F. The Authority intends to levy special taxes and issue bonds to fund, among other things, all or a portion of the costs of the Acquisition Improvements. The portion of the proceeds of the special taxes and bonds allocable to the cost of the Acquisition Impr ovements, together with interest earned thereon, is referred to herein as the “Available Amount”. G. The Authority will provide financing for the acquisition by the City of the Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements from the Available Amount. Attached hereto as Agreement Exhibit A is a description of the Acquisition Improvements, which includes authorized discrete and usable portions, if any, of the public capital improvements, pursuant to Section 53313.51 of the Act, to be acquired from the Developer, and the specified development fees. H. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the terms and conditions of this Agreement, the City will acquire the completed Acquisition Improvements. An itemized development fee shall be considered complete when it is paid by the Developer, or when it is payable directly from bond or special tax proceeds. I. The Developer has submitted plans, specifications and drawings for a portion of the Acquisition Agreements specifically titled _________________________________________________________ . Together these plans, specifications and drawings are the “Improvement Plans”. J. The Improvement Plans are on file in the office of the City Engineer and were approved by the City Engineer on the ___ day of ___________ 20__. K. Any and all monetary obligations of the City arising out of this Agreement are the special and limited obligations of the City payable only from the Available Amount, and no other funds whatsoever of the City shall be obligated therefor under any circumstances. L. In consideration of Recitals A through K, inclusive, and the mutual covenants, undertakings and obligations set forth below, the City, the Authority and the Developer agree as stated below. M. Attached to this Agreement are Agreement Exhibit A (the Acquisition Improvements and the Eligible Portions thereof), Agreement Exhibit B (Form of Requisition), and Agreement Exhibit C (Bidding, Contracting and Construction Requirements for Acquisition Improvements), all of which are incorporated into this Agreement for all purposes. 3 AGREEMENT NOW, THEREFORE, in consideration of the faithful performance of the terms and conditions set forth in this Agreement, the parties hereto agree as follows: 1. Incorporation of Recitals. The foregoing Recitals are true and correct and, together with the Project Approvals and the requirements of Chapters 15.16 and 16.16 of the Rohnert Park Municipal Code, are hereby incorporated into and form a material part of this Agreement. 2. Effect on Other Agreements. Nothing in this Agreement shall be construed as affecting the Developer’s or the City’s duty to perform their respective obligations under any other agreements, land use regu lations or subdivision requirements related to the Project, which obligations are and shall remain independent of the Developer’s and the City’s rights and obligations under this Agreement. 3. Definitions. As used herein, the following capitalized terms shall have the meanings ascribed to them below: “Acceptable Title” means free and clear of all monetary liens, encumbrances, assessments, whether any such item is recorded or unrecorded, and taxes, except those items which are reasonably determined by the City Engineer not to interfere with the intended use and therefore are not required to be cleared from the title. “Acquisition and Construction Fund” means the “City of Rohnert Park University Park Community Facilities District Acquisition and Construction Fund” established by the Authority pursuant to the Resolution and Section 7.3 hereof for the purpose of paying the Acquisition Price of the Acquisition Improvements. “Acquisition Improvement” means a public capital improvement or a development fee described in Exhibit A hereto. “Acquisition Price” means the total amount eligible to be paid to the Developer upon acquisition of an Acquisition Improvement as provided in Section 7.6, or in the case of a development fee, the actual amount paid by the Developer, or the amount of a development fee to be paid on behalf of the Developer from bond or special tax proceeds, in every case not to exceed the Actual Cost of the Acquisition Improvement. “Actual Cost” means the total cost of an Acquisition Improvement, as documented by the Developer to the satisfaction of the City and as certified by the City Engineer in an Actual Cost Certificate including, without limitation, (a) the Developer’s cost of constructing such Acquisition Improvement including grading, labor, material and equipment costs, (b) the Developer’s cost of designing and engineering the Acquisition Improvement, preparing the plans and specifications and bid documents for such Acquisition Improvement, and the costs of inspection, materials testing and construction staking for such Acquisition Improvement, (c) the Developer’s cost of any performance, payment and maintenance bonds and insurance, including title insurance, required hereby for such Acquisition Improvement, (d) the Developer’s cost of environmental evaluation or mitigation required for such Acquisition Improvement, and (e) the amount of any fees actually paid by the Developer to governmental agencies in order to obtain permits, licenses or other necessary governmental approvals and reviews for such Acquisition Improvement. “Actual Cost Certificate” means a certificate prepared by the Developer detailing the Actual Cost of an Acquisition Improvement, or an Eligible Portion thereof, to be acquired hereunder, as may be revised by the City Engineer pursuant to Section 7.6. “Agreement” means this Acquisition Agreement, dated as of the __ day of ___________________, 20__. 4 “Authority” means the California Statewide Communities Development Authority. “Authority Trust Agreement” means a Trust Agreement entered into by the Authority and an Authority Trustee in connection with the issuance of bonds. “Authority Trustee” means the financial institution identified as trustee in an Authority Trust Agreement. “Available Amount” shall have the meaning assigned to the term in Recital F. “Bonds” means bonds or other indebtedness issued by the Authority that is to be repaid with Special Taxes. “City” means the City of Rohnert Park. “City Engineer” means the City Engineer of the City of Rohnert Park or his/her designee who will be responsible for administering the acquisition of the Acquisition Improvements hereunder. “Code” means the Government Code of the State of California. “Community Facilities District” shall have the meaning assigned to the term in Recital C. “Developer” means University District, LLC, a Delaware limited liability company, and Vast Oak Properties L.P., a California Corporation, and their successors and assigns. “Disbursement Request Form” means a requisition for payment of funds from the Acquisition and Construction Fund for an Acquisition Improvement, or an Eligible Portion thereof in substantially the form contained in Exhibit B hereto. “Eligible Portion” shall have the meaning ascribed to it in Section 7.6 below. “Installment Payment” means an a mount equal to ninety percent (90%) of the Actual Cost of an Eligible Portion. “Project” means the Developer’s development of the property in the Community Facilities District, including the design and construction of the Acquisition Improvements and the other public and private Acquisition Improvements to be constructed by the Developer within the Community Facilities District. “Resolution” means City of Rohnert Park Resolution No. 2014-__, adopted the 25th day of November, 2014 titled “A Resolution of the City Council of the City of Rohnert Park Authorizing The California Statewide Communities Development Authority (The “Authority”) To Form A Community Facilities District Within The Territorial Limits Of The City Of Rohnert Park and Related Matters”. “Special Taxes” means annual special taxes, and prepayments thereof, authorized by the Community Facilities District to be levied by the Commission of the Authority. “Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests therein (including easements), or an irrevocable offer of dedication of such real property with interests therein necessary to the operation, maintenance, rehabilitation and improvement by the City of the Acquisition Improvement (including, if necessary, easements for ingress and egress) and a bill of sale or similar instrument evidencing transfer of title to the Acquisition Improvement (other than said real property interests ) to the City, where applicable. 4. Purpose; Effective Date 4.1 Purpose. The purpose of this Agreement is to provide financing for and guarantee completion of the Acquisition Improvements ; to ensure satisfactory performance by Developer 5 of Developer's obligations under this Agreement, and to provide a credit to Developer of a portion of the costs of the Acquisition Improvements through a reduction or payment of the Public Facilities Fee obligation of the Developer. 4.2 Effective Date. The Effective Date of this Agreement shall be as set forth above. 5. Property Subject to Agreement. The property which is the subject of this Agreement is located in the City of Rohnert Park, Sonoma County, California, and is described in Agreement Exhibit D, attached hereto. 6. Acquisition Improvements 6.1 Duty to Install Acquisition Improvements. Developer will design, construct, install and complete, or cause to be constructed, installed and completed, at the Developer's sole cost and expense, the Acquisition Improvements, in accordance with the Improvement Plans (defined in Recital I. above) and to the satisfaction of the City Engineer, in his/ her reasonable discretion. Developer will also supply all labor and materials therefor, all in strict accordance with the t erms and conditions of this Agreement. The construction, installation and completion of the Acquisition Improvements including all labor and materials furnished in connection therewith are hereinafter referred to collectively as the "Work." City shall not be responsible or liable for the maintenance or care of the Acquisition Improvements unless and until City formally approves and accepts them in accordance with its policies and procedures. City shall exercise no control over the Acquisition Improvements unless and until approved and accepted. Any use by any person of the Acquisition Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Developer at all times prior to City’s acceptance of the Acquisition Improvements. Developer shall maintain all the Acquisition Improvements in a state of good repair until they are completed by Developer and approved and accepted by City. Such maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Developer’s responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Developer fails to prop erly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Developer and its surety under this Agreement. Prior to undertaking said maintenance work, City agrees to notify Developer in writing of the deficiencies and the actions required to be taken by the Developer to cure the deficiencies. Except in an emergency, Developer shall have thirty (30) days from the date of the notice within which to correct, remedy or cure the deficiency. If the written notification states that the problem is urgent and relates to the public health and safety, then the Developer shall have twenty-four (24) hours to correct, remedy or cure the deficiency. City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Acquisition Improvements or their condition prior to acceptance. 6.2. Completion Date. Developer will complete the Work within three years of the Effective Date or as required by the Amended and Restated Development Agreement between the City and Developer, whichever is sooner. All Work will be completed in a good and workmanlike manner in accordance with accepted design and construction practices. T his completion date may be extended by the City in its sole and absolute discretion at the request of Developer, which request shall be accompanied by a written assurance acceptable to the City Attorney that the securities required by Section 9 shall remain enforceable throughout the term of the extension. 6 6.3. Reversion to Acreage. If Developer fails to perform its obligations under this Agreement, Developer consents, as applicable, to the reversion to acreage of the land which is subject to this Agreement pursuant to Government Code section 66499.16 and to bear all applicable costs. 6.4. Property Acquisition. If Developer is unable to acquire property required for the construction of the Acquisition Improvements, Developer agrees to execute a contract for real property acquisition to provide for acquisition through eminent domain. 6.5. Estimated Cost of Work. The estimated cost of the Work is __________________. Notwithstanding this estimate, Developer hereby acknowledges and agrees that (a) the actual costs to complete the Work may significantly exceed this estimate, (b) this estimate in no way limits Developer’s financial obligation, and (c) that Developer is obligated to complete the Work at its own cost, expense, and liability. 6.6. Modifications to the Plans. Approval of this Agreement by City does not release Developer of its responsibility to correct mistakes, errors or omissions in the Improvement Plans. If, at any time, in the opinion of the City Engineer, in his/her reasonable discretion, the Improvement Plans are deemed inadequate in any respect Developer agrees to make such modifications, changes or revisions as necessary in order to complete the Work in a good and workmanlike manner in accordance with accepted design and construction standards. 6.7. Foreman or Superintendent. Developer shall give personal attention to the Work. A competent foreman or superintendent, satisfactory to the City Engineer, in his/her reasonable discretion, with authority to act for and on behalf of Developer, s hall be named in writing by Developer prior to commencement of the Work, shall be present on the Property during the performance of the Work and may not be changed without the advance notification to and satisfaction and concurrence of the City Engineer. 6.8. Encroachment Permits. Developer shall obtain, at its sole cost and expense, any encroachment permits required by the City in order to perform the Work. 6.9. Commencement of Construction and Inspection. Developer and its contractor or subcontractors shall not commence construction of the Acquisition Improvements until Developer has received written authorization from City to proceed. Written authorization shall be in the form of signed approved plans along with permit issuance, including any encroachment permit required to carry on construction activities in the City's right -of-way as described in Section 6.8. All work performed on the Acquisition Improvements shall be done in strict compliance with the City approved plans, specifications and the contract documents and in a good and workmanlike manner. All work performed by Developer, its contractor or agents to construct the Acquisition Improvements shall be subject to inspection and approval by City. All fees and costs to construct the Acquisition Improvements shall be borne solely by Developer (including the applicable Inspection Fee in accordance with the City's adopted Engineering Fee Schedule). Inspection by City or its employees or agents shall not relieve Developer of its liability for design def ects or improper or inadequate workmanship. 6.10. Examination of Work. All of the Work shall be performed to the satisfaction of the City Engineer, in his/her reasonable discretion. The City and its authorized agents shall, at all times during the perfor mance of the Work, have free access to the Work and shall be allowed to examine the Work and all materials used and to be used in the Work. 7 6.11. City's Inspection, Administration and Testing Costs. Developer shall pay to City the actual cost for all insp ection, administration and testing services furnished by City in connection with this Agreement, including those performed by consultants under contract with the City (the "City Costs"). City agrees not to double charge Developer (through the imposition of both a processing fee and a consultant charge) for any individual monitoring, inspection, testing or evaluation service. In addition, City agrees to limit its use of outside consultants to those reasonably necessary or desirable, as determined by the City Manager or his designee in his reasonable discretion, to accomplish the requisite inspection, administration and monitoring. The estimated cost for the inspection, administration and testing services is Eighteen Thousand, Eight Hundred Seventy-six Dollars and Ninety Cents ($18,876.90) (the "Estimated Cost"). Notwithstanding this estimate, Developer hereby acknowledges and agrees that (a) the actual costs to accomplish the requisite inspection, administration and monitoring may significantly exceed this estimate, (b) this estimate in no way limits Developer’s financial obligation, and (c) that Developer is obligated to reimburse the City for its actual cost, expense, and liability associated with said inspection, administration and monitoring. City will bill the Developer for the actual costs of inspection, administration and testing in a manner consistent with terms and conditions of the Reimbursement Agreement between City and Developer dated _______________ and the Development Agreement Approved by City Ordinance 878 on April 22, 2104. 6.12. No Waiver by City. Inspecting of the work and/or materials, or approval of work and/or materials, or a statement by an officer, agent or employee of the City indicating the work complies with this Agreement, or a cceptance of all or any portion of the work and/or materials, or payments thereof, or any combination of all of these acts shall not relieve Developer or its obligation to fulfill this Agreement; nor is the City by these acts prohibited from bringing an action for damages arising from the failure to comply with this Agreement. 6.13. Erosion Control. Pursuant to Rohnert Park Municipal Code Chapter 15.52, Developer shall be responsible for the control of erosion on the Property and shall prevent its entry into the storm drainage system. 6.14. Prevailing Wages. The work of the Acquisition Improvements constitutes a "public work" as defined in the California Labor Code, section 1771, et seq ("Labor Code Regulations"). Developer agrees and acknowledges that the construction of the Acquisition Improvements is subject to the payment of prevailing wages and agrees to comply with the requirements of the Labor Code Regulations. Further, Developer agrees to defend, indemnify and hold City, its elected officials, off icers, employees, and agents free and harmless from any and all claims, damages, suits or actions arising out of or incident to Developer's obligations under this section. Developer agrees to satisfy, to the extent applicable, its obligation of registering with the Department of Industrial Relations and furnishing electronic certified payroll records to the Labor Commissioner pursuant to Senate Bill 854 (2014). 6.15. Contractor Licenses. All work performed on the Acquisition Improvements shall be done only by contractors licensed in the State of California and qualified to perform the type of work required and comply with the City's Business License Ordinance. 6.16. Repair of Work Damaged During Construction. Developer agrees to repair or have repair ed in a timely manner at its sole cost and expense all public roads, streets, or other public or private property (both real and personal) damaged as a result of or incidental to the Work or in connection with the development of the Property or to pay to the property owner of any damaged road, street or property the full cost of such repair. In addition, Developer shall obtain the written acceptance of such repair or payment from any owner whose private property was repaired by Developer or to 8 whom Developer has paid the full cost of such repair in accordance with this Section 6.16. City shall be under no obligation whatsoever to accept the Work completed under this Agreement until such time as all repairs have been completed or have been paid for and writ ten acceptances have been provided to the City Engineer, except as otherwise provided in section 6.20.1. 6.17. Payments. Developer agrees that it will pay, when due, all those furnishing labor or materials in connection with the Work. Developer further a grees that pursuant to Government Code section 66499.7, the Labor and Materials Bond provided by Developer in accordance with Section 9.1.2 of this Agreement shall not be released if any mechanics liens or stop notices are outstanding, unless said liens ar e released by bond in compliance with Civil Code section 3143. 6.18. Liability for Work Prior to Formal Acceptance. Until the City Council has formally accepted the Acquis ition Improvements, Developer shall be solely responsible for all damage to the work, regardless of cause, and for all damages or injuries to any person or property at the work site, except damage or injury due to the sole negligence of City, or its employees. Developer shall replace or repair any portion of the Acquisition Improvements that have been destroyed or damaged prior to final acceptance of completed work by the City Council or the City Engineer. Any such repair or replacement shall be to the satisfaction and subject to the approval of the City Engineer. Developer shall repair to the satisfaction of the City Engineer any damage to the utilities systems, concrete work, street paving or other public Acquisition Improvements that may occur in connection with the Acquisition Improvements work. 6.19. Completion of Work. After Developer (a) completes the Work in accordance with the Improvement Plans and the terms and conditions of this Agreement, (b) repairs any road, street, or private or public property damaged as a result of the Work or pays the full cost of such repair to the owner whose property was damaged and (c) obtains the written acceptance of such repair or payment from any owner whose private property was repaired by Developer or to whom Developer paid the full cost of such repair, Developer will provide City with a written notice of completion, together with copies of all written acceptances. 6.20. Final Acceptance. 6.20.1 Notice of Completion. Within thirty (30) days of receipt of Developer's written notification pursuant to Section 6.19 above, City Engineer shall inspect the Work and repairs and review the written acceptances, if any, and send Developer a written notice stating whether the Work and repair are complete to the satisfaction of the City Engineer, in his/her reasonable discretion, and whether the written acc eptances have been provided. If the Work and repair are, in the opinion of the City Engineer, not complete and satisfactory, and/or written acceptances have not been provided, the City Engineer will list the deficiencies that must be corrected to find the Work and repair complete and satisfactory. Upon satisfactory completion of the Work and repair and submittal of written acceptances, the City Engineer will send Developer a written notice of satisfactory completion. The requirement for written acceptances may be waived by the City Engineer, in his/her reasonable discretion, if Developer has made commercially reasonable efforts to obtain such acceptances. City Engineer's failure to respond to Developer's written notification within thirty (30) days will not be deemed a breach or default under this Agreement. 6.20.2 Acceptance of Improvements. After sending Developer a written notice of satisfactory completion pursuant to Section 6.20.1, the City Engineer will recommend acceptance of the Acquisition Improvements, or a portion thereof, to the City Council. In conjunction with such recommendation, the City Engineer will recommend the acceptance of the offers of dedication shown on the final map for the Property. The acceptance of the Acquisition Improvements, offers of 9 dedication and right -of-way and easements, if any, shall be by resolution. Upon adoption of such resolution, the City Engineer shall record a notice of acceptance, in a form to be approved by the City Attorney, in the Official Records of Son oma County. 6.21. Warranty Period; Repair and Reconstruction. Without limiting the foregoing, Developer expressly warrants and guarantees all Work performed under this Agreement and all materials used in the Work for a period of one (1) year after the date of recordation of the notice of acceptance of the Acquisition Improvements in accordance with Section 6.20. If, within this one (1) year period, any Improvement or part of any Improvement installed or constructed, or caused to be installed or constructed by Developer, or any of the work done under this Agreement, fails to fulfill any of the requirements of the Improvement Plans or this 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, by failing to repair, replace or reconstruct work thirty (30) days after notification by City, 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 recons truction and Developer shall pay to the City upon demand the actual cost of such repairs, replacements or reconstruction. 6.22. Record Drawings. Upon completion of the Acquisition Improvements and prior to final acceptance by the City Council, Developer shall deliver to City one electronic file, in a format specified by the City Engineer, and one mylar copy of "as-built" drawings. These drawings shall be in a form acceptable to the City Engineer, shall be certified by an engineer licensed by the State of California as to accuracy and completeness, and shall reflect the Acquisition Improvements as actually constructed, with any and all changes incorporated therein. Developer shall be solely responsible and liable for ensuring the completeness and accuracy of the record drawings. 6.23. Ownership of Improvements. From and after acceptance of the Acquisition Improvements by formal action of the City Council, ownership of the Acquisition Improvements shall be vested exclusively in City. 7. Community Facilities District. 7.1. Establishment of Community Facilities District . Developer has requested the City to permit the Authority to provide for financing of the Acquisition Improvements through the establishment and authorization of the Community Facilities District and the City agreed by its adoption of the Resolution. The Community Facilities District was established by the Authority on __ day of ___________, 20__, and through the successful landowner election held that same day, the Commission of the Authority is authorized to levy the Special Taxes and to issue the Bonds to finance the Acquisition Improvements. Developer, the City and the Authority agree to reasonably cooperate with one another in the completion of the financing through the issuance of the Bonds in one or more series. 7.2. Deposit and Use of Available Amount. 7.2.1 Prior to the issuance of the first series of Bonds, Special Taxes collected by the Authority shall be deposited in the Acquisition and Construction Fund established by the Authority and may be disbursed to pay the Acquisition Price of Acquisition Improvements in accordance with this 10 Agreement. All funds in the Acquisition and Construction Fund shall be considered a portion of the Available Amount, and upon the issuance of t he first series of Bonds the Acquisition and Construction Fund shall be transferred to the Authority Trustee to be held in accordance with the Authority Trust Agreement. 7.2.2 Upon the issuance of the first series of Bonds, the Authority will cause the Authority Trustee to establish and maintain the Acquisition and Construction Fund for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the Acquisition and Construction Fund shall remain in the Acquisition and Construction Fund for use as provided herein and pursuant to the Authority Trust Agreement. Money in the Acquisition and Construction Fund shall be available to respond to delivery of a Disbursement Request Form and to be paid to the Developer or its designee to pay the Acquisition Price of the Acquisition Improvements. Upon completion of all of the Acquisition Improvements and the payment of all costs thereof, any remaining funds in the Acquisition and Construction Fund (less any amount determined by the C ity as necessary to reserve for claims against the account) (i) shall be applied to pay the costs of any additional Acquisition Improvements eligible for acquisition with respect to the Project as approved by the Authority and, to the extent not so used, (ii) shall be applied by the Authority to call Bonds or to reduce Special Taxes as the Authority shall determine. 7.3 Letting and Administering Design Contracts. The Developer has awarded and Acquisition Improvements to be acquired from Developer. All eligible expenditures of the Developer for design engineering and related costs in connection with the Acquisition Improvements (whether as an advance to the City or directly to the design consultant) shall be reimbursed at the time of acquisition of the Acquisition Improvements. The Developer shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price as provided in Section 7.5 and shall not be entitled to any payment for design costs independent of the acquisition of Acquisition Improvements. 7.4 Letting and Administration of Construction Contracts; Indemnification. State law requires that all Acquisition Improvements not completed prior to the formation of the Community Facilities District shal l be constructed as if they were constructed under the direction and supervision, or under the authority, of the City. In order to assure compliance with those provisions, except for any contracts entered into prior to the date hereof, Developer agrees to comply with the requirements set forth in Exhibit C hereto with respect to the bidding and contracting for the construction of the Acquisition Improvements. The Developer agrees that all the contracts shall call for payment of prevailing wages as required by the Labor Code of the State of California. The Developer’s indemnification obligation set forth in Section 10.1 of this Agreement shall also apply to any alleged failure to comply with the requirements of this Section, and/or applicable State laws regarding public contracting and prevailing wages. 7.5 Sale of Acquisition Improvements. The Developer agrees to sell to the City each Acquisition Improvement to be constructed by Developer (including any rights-of -way or other easements necessary for the Acquisition Improvements, to the extent not already publicly owned), when the Acquisition Improvement is completed to the satisfaction of the City for an amount not to exceed the lesser of (i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvement. Exhibit A, attached hereto and incorporated herein, contains a list of the Acquisition Improvements. Portions of an Acquisition Improvement eligible for Installment Payments prior to completion of the entire Acquisition Improvement are described as eligible, discrete and usable portions in Exhibit A (each, an “Eligible Portion”). At the time of completion of each Acquisition Improvement, or Eligible Portion thereof, the Developer shall deliver to the City Engineer a written request for acquisition, accompanied by an Actual Cost Certificate, and by executed Title Documents for the transfer of the Acquisition Improvement where necessary. In the event that the City Engineer finds that the supporting paperwork submitted by the 11 Developer fails to demonstrate the required relationship between the subject Actual Cost and eligible work, the City Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Developer. If the further documentation is still not adequate, the City Engineer may revise the Actual Cost Certificate to delete any disallowed items and the determination shall be final and conclusive. Where a specific contract has been awarded for design or engineering work relating solely to an Acquisition Improvement or Improvements, one hundred percent (100%) of the costs under the contract will be allocated to that Acquisition Improvement. Costs of environmental mitigation required solely to mitigate impacts of an Acquisition Improvement or Acquisition Improvements will be allocated one hundred percent (100%) public to that Acquisition Improvements. When costs of design or environmental work are shared between Acquisition Improvements and improvements not eligible for acquisition, or between public and private work, these costs are not eligible for reimbursement. 7.6 Conditions Precedent to Payment of Acquisition Price. Payment to the Developer or its designee of the Acquisition Price for an Acquisition Improvement from the Acquisition and Construction Fund shall in every case be conditioned first upon the determination of the City Engineer, pursuant to Section 7.5, that the Acquisition Improvement satisfies all City regulations and ordinances and is otherwise complete and ready for acceptance by the City, and shall be further conditioned upon satisfaction of the following additional conditions precedent: a) The Developer shall have provided the City with lien releases or other similar documentation satisfactory to the City Engineer as evidence that none of the property (including any rights -of-way or other easements necessary for the operation and maintenance of the Acquisition Improvement, to the extent not already publicly owned) comprising the Acquisition Improvement, and the property which is subject to the special taxes of the Community Facilities District, is not subject to any prospective mechanics lien claim respecting the Acquisition Improvements. b) The Developer shall b e current in the payment of all due and payable general property taxes, and all special taxes of the Community Facilities District, on property owned by the Developer or under option to the Developer within the Community Facilities District. c) The Developer shall have provided the City with Title Documents needed to provide the City with title to the site, right-of-way, or easement upon which the subject Acquisition Improvement is situated. All such Title Documents shall be in a form acceptable to the City and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a form acceptable to the City Engineer and the City Attorney insuring the City as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the City and the Developer. Each title insurance policy required hereunder shall be in the amount equal to the Acquisition Price. The amount paid to the Developer or its designee upon satisfaction of the foregoing conditions precedent shall be the Acquisition Price less all Installment Payments paid previously with respect to the Acquisition Improvement. 7.7 Payment for Eligible Portions. The D eveloper may submit an Actual Cost Certificate to the City Engineer with respect to any Eligible Portion. Payment to the Developer or its 12 designee from the Acquisition and Construction Fund of an Installment Payment with respect to such Eligible Portion shall in every case be conditioned first upon the determination of the City Engineer, pursuant to Section 7.5, that the Eligible Portion has been completed in accordance with the applicable plans and specifications and that the Eligible Portion satisfies all City regulations and ordinances and is otherwise complete and, where appropriate, is ready for acceptance by the City, and shall be further conditioned upon satisfaction of the following additional conditions precedent: a) The Developer shall have provided the City with lien releases or other similar documentation satisfactory to the City Engineer as evidence that the property (including any rights -of-way or other easements necessary for the operation and maintenance of the Eligible Portion, to the extent not already owned by the City) comprising the Eligible Portion is not subject to any prospective mechanics lien claim respecting the Eligible Portion. b) The Developer shall be current in the payment of all due and payable general property taxes, and all special taxes of the Community Facilities District, on property owned by the Developer or under option to the Developer within the Community Facilities District. c) The Developer shall have provided the City with Title Documents needed to provide the City with title to the site, right -of-way, or easement upon which the subject Eligible Portion is situated. All such Title Documents shall be in a form acceptable to the City Engineer and shall be sufficient, upon completion of the Acquisition Improvement of which the Eligible Portion is a part, to convey Acceptable Title. d) Payment and performance bonds, from a bonding company with an A.M. Best rating of at least “A-” or its equivalent, applying to plans and specifications for the Acquisition Improvement approved by the City, shall be in place to secure completion of the Acquisition Improvement of which the Eligible Portion is a part. 7.8 Disbursement Request Form. Upon a determination by the City Engineer to pay the Acquisition Price of an Acquisition Improvement pursuant to Section 7.6 or to pay an Installment Payment for an Eligible Portion pursuant to Section 7.7, the City Engineer shall cause a Disbursement Request Form substantially in the form attached hereto as Exhibit B to be submitted to the Authority Trustee, a nd the Authority Trustee shall make payment directly to the Developer or its designee of the amount pursuant to the Authority Trust Agreement. The Authority, the City and the Developer acknowledge and agree that the Authority Trustee shall make payment strictly in accordance with the Disbursement Request Form and shall not be required to determine whether or not the Acquisition Improvement or Eligible Portion has been completed or what the Actual Costs may be with respect to the Acquisition Improvement or Eligible Portion. The Authority Trustee shall be entitled to rely on the executed Disbursement Request Form on its face without any further duty of investigation. In the event that the Actual Cost of an Acquisition Improvement or the Installment Payment for an Eligible Portion is in excess of the Available Amount, the Authority Trustee shall withdraw all funds remaining in the Acquisition and Construction Fund and shall transfer those amounts to the Developer or its designee. The unpaid portion of the Actual Cost shall be paid from funds that may subsequently be deposited in the Acquisition and Construction Fund from a subsequent issuance of Bonds or from Special Tax revenues, if either of those occurs. 13 7.9. Limitation on Obligations. In no event shall the City or the Authority be required to pay the Developer or its designee more than the amounts held in the Acquisition and Construction Fund. 7.10. Audit. The City and the Authority shall have the right, during normal business hours and upon the giving of ten days’ written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement pursuant to this Agreement) in constructing the Acquisition Improvements. 8. Public Facilities Finance Plan Fee Credit 8.1. Eligible Improvements. The Acquisition Improvements eligible to receive the Public Facilities (PF) Fee Credit described are ____________________, more particularly described in Exhibit E. 8.2. Source and Method of Credit. Subject to the limitations set forth in Section 8.6, City shall credit Developer for the costs associated with the design, financing, construction and installation of the Acquisition Improvements listed in Exhibit E (the "PF Fee Credit"). The PF Fee Credit represents reimbursement to the Developer of costs that are covered by the PF Fee, but which Developer has agreed to incur. The initial estimated total credit amount is indicated in Exhibit F "PF Fee Credit Calculation" attached hereto, and shall be afforded to Developer in the form of a credit against the Public Facilities Fee that would otherwise be applicable to the Project. 8.3. Implementation of PF Fee Credit. Developer shall be entitled to receive the PF Fee Credit at the time of issuance of building permit. Such credit shall be personal to the Developer and shall not run to successors and assigns unless expressly authorized to so run, in writing by the Developer. 8.4. Fee Obligation. Developer's obligation to pay the full amount of the PF Fee shall remain a debt and obligation of Developer until completion by Developer and acceptance of the Acquisition Improvements by City. In the event that the Acquisition Improvements are not completed by a date two (2) years from the Effective Date of this Agreement, any PF Fee previously credited pursuant to this Agreement shall be immediately due and payable. If such fees are not paid as required, City may provide written notice to Developer of its default. If such default is not corrected within 30 days from the date of written notice, Developer agrees that the amount of any unpaid PF Fees may be placed upon the property as a lien and special assessment. The assessment shall continue until it is paid, together with interest at the legal maximum rate computed from the date of confirmation of the statement until payment. The assessment shall be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and procedure and sale in case of delinquency as is provided for ordinary municipal taxes. All laws applicable to the levy, collection and enforcement of municipal taxes shall be applicable to the special assessment. In addition, City may use any other available legal means to collect the unpaid PF Fee and the choice of one remedy does not affect City's ability to use alternative remedies. 8.5. Expiration of Credit Obligation. The PF Fee Credit shall be granted to Developer at the time Developer obtains building permit(s). City's obligation to extend Developer a credit as described herein shall continue for a total of two (2) years from the date the Developer begins construction of the Acquisition Improvements as more fully described in Exhibit E, unless the obligation is sooner satisfied. If Developer fails to complete the Acquisition Improvements within a two-year time frame, City may seek payment of the Public Facilities Fee from Developer as provided in Section 8.4, above. 8.6. Maximum Credit. The total amount of the PF Fee Credit obligation for the Acquisition Improvements shall be as determined by City in accordance with the most current edition of 14 the City of Rohnert Park Public Facilities Finance Plan. The Parties acknowledge and agree that the maximum credit amount for the Acquisition Improvements is estimated to be ____________ ($---). 8.7. Areas and Quantities . The areas and quantities used to develop this Public Facilities Fee Credit are based on the information and plans available at this time. The actual areas and quantities may change at the time of dedication to the City and/or construction by the Developer. If it is determined by the City Engineer that the areas and quantities have changed, the credit amount may be adjusted accordingly, either l ower or higher up to the maximum credit amount set forth above. 9. Security. 9.1. Performance, Labor and Materials and Warranty Security. In accordance with Sections 16.16.060 through 16.16.070 of the Rohnert Park Municipal Code, Developer will furnish and deliver to City, within the times set forth below, the following surety bonds, each of which must be issued by a surety company duly and regularly authorized to do general surety business in the State of California, or an irrevocable assignment of funds or letter of credit as may be acceptable to the City Attorney. 9.1.1 Performance Security. Developer shall furnish and deliver performance security in the amount of _________________ concurrently with the execution of this Agreement, which must meet the r equirements of Government Code Section 66499.1, if applicable, and Rohnert Park Municipal Code Section 16.16.070 and be acceptable to the City Attorney. The security shall be conditioned upon the faithful performance of this Agreement with respect to the Work and shall be released by the City effective upon the date of recordation of the notice of acceptance of the Acquisition Improvements as described in Section 6.20.2 and Developer's delivery of the Warranty Security described in Section 9.1.3. 9.1.2 Labor and Materials Security. Developer shall furnish and deliver labor and materials security in the amount of __________________________, concurrently with the execution of this Agreement which security must meet the requirements of Government Code Section 66499.2, if applicable, and Rohnert Park Municipal Code Section 16.16.070 and be acceptable to the City Attorney. The security shall secure payment to the contractor(s) and subcontractor(s) performing the Work and to all persons furnishing labor, materia ls or equipment to them. The City shall retain each security until both (i) the City accepts the Work in accordance with Section 6.20 above and (ii) the statute of limitations to file an action under Civil Code section 3114 et seq. has expired. After said date, the security may be reduced by the City Engineer to an amount not less than the total amount claimed by all claimants for whom claims of lien have been recorded and notice given in writing to the City Council. The balance of the security shall be retained until the final settlement of all such claims and obligations. If no such claims have been recorded, the security shall be released in full by the City Engineer. 9.1.3. Warranty Security. Developer shall furnish and deliver warranty security in the amount specified in section 16.16.070 c. of the Rohnert Park Municipal Code. The amount of ________________________ shall be provided upon acceptance of the Acquisition Improvements and prior to release of the Performance Security. The security shall be in a form acceptable to the City Attorney and shall guarantee and warranty the Work for a period of one (1) year following the date of recordation of the notice of acceptance of the Acquisition Improvements against any defective work or labor done, or defective materials furnished. 9.2. Additional Security. If either upon execution of this Agreement or during the course of performance the City considers that it is necessary to have Developer post additional security, 15 the City may require either a cash deposit or a surety bond guaranteeing performance in a form and signed by sureties satisfactory to it. The condition of the security shall be that if Developer fails to perform its obligation under this Agreement, the City may in the case of a cash bond act for it using the proceeds or in the case of a surety bond require the sureties to perform the obligations of the Agreement. 10 Indemnity and Insurance. 10.1 Indemnification. Developer agrees to indemnify, defend and hold the City and Authority, inclu ding elective and appointed boards, commissions, officers, agents, employees and consultants, harmless from and against any and all claims, liabilities, losses, damages or injuries of any kind (collectively, "Claims") arising out of Developer's, or Develop er's contractors', subcontractors', agents' or employees', acts, omissions, or operations under this Agreement, including, but not limited to, the performance of the Work, whether such acts, omissions, or operations are by Developer or any of Developer's contractors, subcontractors, agents or employees, except to the extent such Claims are caused by the sole negligence or willful misconduct of the City. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. Developer shall defend the City as required by C alifornia Civil Code Section 2778, and with counsel reasonably acceptable to the City developer shall have no right to seek reimbursement from City for the costs of defense. The aforementioned indemnity shall apply regardless of whether or not City has pr epared, supplied or approved plans and/or specifications for the Work or Acquisition Improvements and regardless of whether any insurance, workers compensation, disability or other employee benefit acts or terms required under this Agreement are applicable to any Claims. The City does not and shall not waive any of its rights under this indemnity provision because of its acceptance of the bonds or insurance required under the provisions of this Agreement. Developer’s obligation to indemnify City shall survive the expiration or termination of this Agreement. Developer agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every sub-contractor or any other person or entity involved by, for, with or on behalf of Developer in the performance of this Agreement. In the event Developer fails to obtain such indemnity obligations from others as required here, Developer agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. 10.2 Assignment and Assumption of Obligations to Authority. In addition to the indemnification obligations described above, consistent with the requirements of Section 4.04 of the Amended and Restated Development Agreement, Developer is solely responsible for the costs, expenses and liability associated with the formation of the CSD. As a result of Developer’s selection of the Authority, City was obligated to adopt a Resolution, as described above in Recital D, authorizing the Authority to form a CSD within the city limits for the benefit of Developer. Paragraphs 12, 13 and 14 of the Resolution require the City to indemnify and hold harmless the Authority for specified risks and to comply with the payment of prevailing wages and satisfy other public contracting requirements. The City and Developer acknowledge in authorizing the Resolution, that the City reserved the right to require the Developer to assume the entirety of such responsibility and by this Paragraph 10.2 intend to effectuate that right. Accordingly, City hereby assigns to Developer all of its obligations and responsibilities under Paragraphs 12, 13 and 14 of the Resolution. Developer hereby accepts said assignment and assumes all obligations and responsibilities under Paragraphs 12, 13 and 14 of the 16 Resolution, and further agrees to perform all of City’s obligations and covenants under Paragraphs 12, 13 and 14 of the Resolution as if Developer were the original signatory thereto. 10.3. Insurance. Developer shall maintain Commercial General Liability Insurance protecting the City from incidents as to bodily injury liability and property damage liability that may occur as a result of the Work and additional repairs. Developer shall provide certificate(s) of insurance and endorsements to City before any Work commences. The insurance policy shall contain, or be endorsed to contain, the following provisions: (1) The City, its officers, elected officials, employees, consultants, agents and volunteers are to be covered as additional insured’s as respects to liability arising out of activities performed by or on behalf of Developer. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, elected officials, employees, consultants, agents and volunteers. (2) The amounts of public liability and property damage coverage shall not be less than $3,000,000 (Three Million Dollars) per occurrence for bodily injury, personal injury and property damage. (3) The insurance shall be maintained in full force until the work has been completed to the satisfaction of the City Engineer. (4) The ins urance policy shall provide for 30 days’ notice of cancellation to the City. The policy shall not be cancelled earlier than nor the amount of coverage be reduced earlier than 30 days after the City receives notice from the insurer of the intent of cancellation or reduction. (5) Any failure to comply with the reporting provisions of the policy shall not affect the coverage provided to the City, its officers, elected officials, employees, consultants, agents and volunteers. (6) Developer's insurance coverage shall be primary insurance as respects the City, its officers, elected officials, employees, consultants, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, elected officials, employees, consultants, agents and volunteers shall be in excess of Developer's insurance and shall not contribute to it. (7) Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Developer and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and rela ted investigation costs, claims, and administrative and defense expenses. (8) Developer and Developer's insurance company agree to waive all rights of subrogation against City, its officers, elected officials, employees, agents and volunteers for losses paid under Developer's workers' compensation insurance policy which arise from the work performed by Developer. 17 (9) Developer’s insurance shall apply separately to each insured against whom claim is made or suit is brought, and include a “separation of insur eds” or “severability” clause which treats each insured separately, except with respect to the limits of the insurer's liability (cross-liability endorsement). (10) It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Additional Insured, including but not limited to any umbrella or excess insurance. Furthermore, the requirements for coverage and limits shall be the greater of: (a) the minimum coverage and limits specified in this Agreement; or (b) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured. In the event that Developer's insurance is cancelled, Developer shall provide replacement coverage or all work must cease as of the cancellation date until replacement insurance coverage is provided. If Developer fails to maintain insurance coverage or provided insurance documentation which is required pursuant to this Agreement, it shall be deemed a material breach of this Agreement. City, at its sole option, may terminate this Agreement and obtain damages from Developer resulting from said breach. Alternatively, City may purchase the required insurance coverage, and without further notice to Developer, may deduct from sums due to Developer any premium costs advanced by City for such insurance. These remedies shall be in addition to any other remedies available to City. 10.3. Workers' Compensation Insurance. Developer shall provide, or cause to be provided, Workers' Compensation insurance as required by law, and shall cause its contractors and their subcontractors, agents and representatives to also maintain Workers' Compensation insurance as required by law. No Work shall commence until such Workers' Compensation insurance is obtained and in full force and effect. 10.4. Other Insurance Requirements. Developer shall: (1) Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance which shall clearly evidence all insurance required in this section and provide that such insurance shall not be canceled, allowed to expire or be materially reduced in coverage except on thirty (30) days prior written notice to City. (2) Provide to City certified copies of endorsements and policies if requested by City, and properly executed certificates of insurance evidencing the insurance required herein. (3) Replace or require the replacement of certificates, policies and endorsements for any insurance required herein expiring prior to completion and acceptance of the Improvements. (4) Maintain all insurance required herein from the time of execution of this Agreement until the acceptance of the Improvements. (5) Place all insurance required herein with insurers licensed to do business in California. 18 11. Breach of Agreement; Opportunity to Cure; Remedies. 11.1. Notice of Breach and Default. The occurrence of any of the following constitutes a breach and default of this Agreement: (1) Developer refuses or fails to complete the Work within the time set forth herein or abandons the Work. (2) Developer assigns the Agreement without the prior written consent of City. (3) Developer is adjudged bankrupt or makes a general assignment for the benefit of creditors, or a receiver is appointed in the event of Developer's insolvency. (4) Developer or Developer's contractors, subcontractors, agents or employees, fail to comply with any terms or conditions of this Agreement. (5) Any delay in the construction of any portion of the Work or repairs, which in the reasonable opinion of the City Engineer, endangers public or private property. The City may serve written notice of breach and default upon Developer and the financial institution holding the security. 11.2. Breach of Agreement; Performance by City. If the City gives Developer notice, under Section 11.1, of breach and default of this Agreement, the City may proceed to complete the Work by contract or other method the City considers advisable, at the sole expense of Developer. Developer, immediately upon demand, shall pay the costs and charges related to the Work and any subsequent repairs. City, without liability for doing so, may take possession of and utilize in completing the Work and repairs, if any, such materials and other property belonging to Developer as may be on or about the Property and necessary for completion of the work. In the event of default, the financial institution holding the security shall be liable to City to pay the face amount of the bonds, as specified under Section 8. 11.3. Remedies. It is acknowledged by the parties that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained, withheld or a pplied by the City. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the City shall not be liable in damages to the Developer or to any assignee or transf eree of the Developer other than for the payments to the Developer specified in the preceding paragraph. Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute which arises out of, this Agreement. City may bring legal action to compel performance of this Agreement and recover the costs of completing the Work and/or repairs, if any, including City's administrative and legal costs. Developer agrees that if legal action is brought by City under this section of the Agreement, Developer shall pay all of the costs of suit; reasonable attorney fees, arbitration costs and such other costs as may be determined by the court or arbitrator. No failure on the part of City to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that City may have hereunder. 12. Miscellaneous. 19 12.1 Compliance with Laws. Developer shall fully comply with all federal, state and local laws, ordinances and regulations in the performance of this Agreement. Developer shall, at its own cost and expense, obtain all necessary permits and licenses for the Work, give all necessary notices, pay all fees and taxes required by law and make any and all deposits legally required by those public utilities that will serve the development on the Property. Copies and/or proof of payment of said permits, licenses, notices, fee and tax payments and deposits shall be furnished to the City Engineer upon request. 12.2 Cooperation. The City, the Authority and the Developer agree to cooperate with respect to the completion of the financing of the Acquisition Improvements by the Authority through the levy of the Community Facilities District Special Taxes and issuance of Bonds. The City, the Authority and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement. 12.3 General Standard of Reasonableness. Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that the consent, approval or acceptance not be unreasonably withheld or delayed, unless the provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision. 12.4 Notices. Formal written notices, demands, correspondence and communications between Cit y and Developer shall be sufficiently given if: (a) personally delivered; or (b) dispatched by next day delivery by a reputable carrier such as Federal Express to the offices of City and Developer indicated below, provided that a receipt for delivery is provided; or (c) if dispatched by first class mail, postage prepaid, to the offices of City and Developer indicated below. Such written notices, demands, correspondence and communications may be sent in the same manner to such persons and addresses as either party may from time-to-time designate by next day delivery or by mail as provided in this section. City: City of Rohnert Park 130 Avram Avenue Rohnert Park, CA 94928 Attn: City Manager With a copy to: City of Rohnert Park 130 Avram Avenue Rohnert Park, CA 94928 Attn: City Attorney Authority: California Statewide Communities Development Authority 1100 K Street, Suite 101 Sacramento, CA 95814 Attn: Chair 20 Developer : University District LLC 500 La Gonda Way, Ste. 100 Danville, CA 94526 Attn: Mr. Kevin Pohlson Vast Oak Properties L.P. c/o Quaker Hill Development Corp. P.O. Box 2240 Healdsburg, CA 95448 Attn: Mr. Craig R. Harrington Notices delivered by deposit in the United States mail as provided above shall be deemed to have been serv ed two (2) business days after the date of deposit if addressed to an address within the State of California, and three (3) business days if addressed to an address within the United States but outside the State of California. 12.5 Attorney Fees. Should any legal action or arbitration be brought by either party because of breach of this Agreement or to enforce any provision of this Agreement, the prevailing party shall be entitled to all costs of suit; reasonable attorney fees, arbitration costs and such other costs as may be determined by the court or arbitrator. 12.6 Entire Agreement. The terms and conditions of this Agreement constitute the entire agreement between City and Developer with respect to the matters addressed in this Agreement. This Agreement may not be altered, amended or modified without the written consent of both parties hereto. 12.7 Conflict with Other Agreements. Nothing contained herein shall be construed as releasing the Developer or the City from any condition of development or requirement imposed by any other agreement between the City and the Developer, and, in the event of a conflicting provision, the other agreement shall prevail unless the conflicting provision is specifically waived or modified in writing by the City and the Developer. 12.8 Runs with the Land; Recordation. This Agreement pertains to and shall run with the Property. Upon execution, this Agreement shall be recorded in the Official Records of Sonoma County. 12.9 Joint and Several Obligations. The City, the Authorit y and the Developer intend that UD LLC property and Vast Oak Property L.P. property, including the Acquisition Improvements, be developed as a physically integrated project. In recognition of such integration, UD LLC and Vast Oak Property L.P. agree that t hey shall be jointly and severally liable for all obligations of the Developer under this Agreement. 12.10 Assignment. The obligations and rights of the parties to this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, but those rights and obligations shall not be assignable, transferable or delegable, except pursuant to the terms hereof, without the written consent of the other parties hereto, and any attempted assignment, transfer or delegation thereof which is not made pursuant to the terms hereof shall be void. 12.11 Time is of the Essence. Time is of the essence of this Agreement and of each and every term and condition hereof. 21 12.12 Severability. If any provision of this Agreement is held, to any extent, invalid, the remainder of this Agreement shall not be affected, except as necessarily required by the invalid provision, and shall remain in full force and effect. 12.13 Waiver or Modification. Any waiver or modification of the provisions of this Agreement must be in writing and signed by the authorized representative(s) of each Party. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of the party’s right to insist upon and demand strict compliance by the other party with the terms of this Agreement. 12.14 Relationship of the Parties. Neither Developer nor the Authority nor either’s contractors, subcontractors, agents, officers, or employees are agents, partners, joint venturers or employees of City and the Developer's relationship to the City, if any, arising herefrom is strictly that of an independent contractor. Developer’s contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Further, there are no intended third party beneficiaries of any right or obligation assumed by the Parties. 12.15 Binding upon Heirs, Successors and Assigns. The terms, covenants and conditions of this Agreement shall be binding upon all heirs, successors and assigns of the parties hereto; provided, however, that this Agreement shall not be binding upon a purchaser or transferee of any portion of the Property unless this Agreement has been assigned pursuant to Section 11.9, in which event this Agreement shall remain binding upon Developer. 12.16 Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions. Any legal actions under this Agreement shall be brought only in the Superior Court of the County of Sacramento, State of California. 12.17 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original. 12.18 Interpretation. This Agreement shall be construed according to its fair meaning, and not strictly for or against any party. No presumptions or rules of inter pretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall apply to the interpretation of this Agreement. 12.19 Headings. Section headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants or conditions contained in this Agreement. 12.20 Authority. Each party executing this Agreement on behalf of a party represents and warrants that such person is duly and validly authorized to d o so on behalf of the entity it purports to bind and if such party is a partnership, corporation or trustee, that such partnership, corporation or trustee has full right and authority to enter into this Agreement and perform all of its obligations hereunder. 12.21 Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. 22 12.22 Sole Agreement. This Agreement, including Exhibit A hereto, constitutes the sole agreement of the parties and supersedes all oral negotiations and prior writings with respect to the subject matter hereof. IN WITNESS WHEREOF, City, Authority, and Developer have executed this Agreement as of the Effective Date. "CITY" CITY OF ROHNERT PARK, a California municipal corporation Dated: By: City Manager Per Resolution No. 20___-____ adopted by the Rohnert Park City Council at its meeting of 11-25-2014. ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 23 Dated: "DEVELOPER" University District LLC, a Delaware limited liability company _______________________________ By: Title:_______________________ And Vast Oak Property L.P., a California limited Partnership ________________________________________ By: Title:_________________________________ ACKNOWLEDGMENT "AUTHORITY" CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, a California joint powers agency Dated: By: Authorized Signatory 24 STATE OF CALIFORNIA ) ) ss. COUNTY OF SONOMA ) On __________________ before me, _______________________________________, (here insert name and title of the officer) personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ________________________________ (Seal) ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss. COUNTY OF CONTRA COSTA ) On __________________ before me, _______________________________________, (here insert name and title of the officer) personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ________________________________ (Seal) 25 STATE OF CALIFORNIA ) ) ss. COUNTY OF CONTRA COSTA ) On __________________ before me, _______________________________________, (here insert name and title of the officer) personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within inst rument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ________________________________ (Seal) RO H N E R T P A R K P E T A L U M A H I L L R O A D EX P R E S S W A Y KE I S E R A V E N U E S N Y D E R L A N E EX H I B I T  A    ‐   Un i v e r s i t y    Di s t r i c t  CF D  Dr a f t  Co s t  Pr o j e c t i o n s   DE S C R I P T I O N  OF  AC Q U I S I T I O N  IM P R O V E M E N T S  EL I G I B L E  PO R T I O N S   A. P U B L I C  FA C I L I T I E S  FI N A N C I N G    PL A N  ( In f r a s t r u c t u r e  Co n s t r u c t i o n  or  Cr e d i t s ) T O T A L  ES T I M A T E D  CO S T 3 R D  PH A S E 4 T H  PHASE T O T A L  ALL   SE W E R EA S T S I D E  TR U N K  SE W E R ‐  PH A S E  1&  SE W E R  CA P A C I T Y  FE E S $ 1 2 , 9 0 7 , 5 4 3 $4 , 8 1 8 , 3 2 1 $2 , 8 1 8 , 1 4 8 $2 , 0 0 3 , 1 9 8 $3,267,87 6 $12,907,54 3 WE S T S I D E  IN T E R C E P T O R  SE W E R  LI N E $ 7 4 0 , 0 0 0 $7 4 0 , 0 0 0 $0 $ 0 $ 0 $ 7 4 0 , 0 0 0 EA S T S I D E  TR U N K  SE W E R ‐  PH A S E  2A  & 2B ‐  MA I N  RE A C H  & SO U T H  RE A C H DE S I G N $ 7 5 , 0 0 0 $7 5 , 0 0 0 $0 $ 0 $ 0 $ 7 5 , 0 0 0 EA S T S I D E  TR U N K  SE W E R ‐    PH A S E  3 ‐  NO R T H  RE A C H $ 2 , 8 0 5 , 2 3 5 $2 , 8 0 5 , 2 3 5 $0 $ 0 $ 0 $ 2 , 8 0 5 , 2 3 5 SE W E R  TO T A L $ 1 6 , 5 2 7 , 7 7 8 $8 , 4 3 8 , 5 5 6 $2 , 8 1 8 , 1 4 8 $2 , 0 0 3 , 1 9 8 $3,267,87 6 $16,527,77 8 RO A D W A Y S  & BR I D G E S RO H N E R T  PA R K  EX P R E S S W A Y  (" R P X " ) ‐  PH A S E  1 $ 5 , 0 7 5 , 9 9 4 $5 , 0 7 5 , 9 9 4 $0 $ 0 $ 0 $ 5 , 0 7 5 , 9 9 4 RP X ‐  PH A S E  2 $ 5 , 0 7 5 , 9 9 4 $0 $ 0 $ 0 $ 5 , 0 7 5 , 9 9 4 $5,075,99 4 KE I S E R  AV E N U E ‐  PH A S E  1 $ 3 , 8 1 0 , 5 2 3 $0 $ 0 $ 3 , 8 1 0 , 5 2 3 $0 $ 3 , 8 1 0 , 5 2 3 KE I S E R  AV E N U E ‐  PH A S E  2 $ 3 , 8 1 0 , 5 2 3 $0 $ 0 $ 3 , 8 1 0 , 5 2 3 $0 $ 3 , 8 1 0 , 5 2 3 SN Y D E R  LA N E  WI D E N I N G ‐  SO U T H W E S T    BL V D . T O    RP X  IN T E R S E C T I O N $ 2 , 9 6 6 , 2 7 1 $2 , 9 6 6 , 2 7 1 $0 $ 0 $ 0 $ 2 , 9 6 6 , 2 7 1 SN Y D E R  LA N E  BR I D G E  AT  CO P E L A N D  CR E E K $ 4 3 5 , 0 0 0 $4 3 5 , 0 0 0 $0 $ 0 $ 0 $ 4 3 5 , 0 0 0 RO A D W A Y S  & BR I D G E S  TO T A L $ 2 1 , 1 7 4 , 3 0 5 $8 , 4 7 7 , 2 6 5 $ 0 $ 7 , 6 2 1 , 0 4 6 $5,075,99 4 $21,174,30 5 DE T E N T I O N  BA S I N S  & DR A I N A G E CO P E L A N D    CR E E K  DE T E N T I O N  BA S I N $ 2 , 4 7 0 , 7 3 1 $0 $ 0 $ 0 $ 2 , 4 7 0 , 7 3 1 $2,470,73 1 RP X  & SN Y D E R  LA N E  DR A I N  LI N E S $ 3 0 0 , 0 0 0 $0 $ 0 $ 0 $ 3 0 0 , 0 0 0 $300,00 0 DE T E N T I O N  BA S I N S  AN D  DR A I N A G E  TO T A L $ 2 , 7 7 0 , 7 3 1 $ 0 $ 0 $ 0 $ 2 , 7 7 0 , 7 3 1 $2,770,73 1 PU B L I C  FA C I L I T I E S  FI N A N C I N G  PL A N  TO T A L $ 4 0 , 4 7 2 , 8 1 4 $1 6 , 9 1 5 , 8 2 1 $2 , 8 1 8 , 1 4 8 $9 , 6 2 4 , 2 4 4 $11,114,60 1 $40,472,81 4 B.      OF F ‐  SI T E S  & ON ‐  SI T E S  IN F R A S T R U C T U R E OF F S I T E S AN D E R S O N  53  WA T E R  TA N K $ 3 , 0 0 0 , 0 0 0 $0 $       3, 0 0 0 , 0 0 0   $0 $ 0 $ 3 , 0 0 0 , 0 0 0 RP X  UT I L I T I E S $ 2 , 5 0 0 , 0 0 0 $2 , 0 0 0 , 0 0 0 $5 0 0 , 0 0 0 $0 $ 0 $ 2 , 5 0 0 , 0 0 0 PE T A L U M A  HI L L  RO A D  UT I L I T I E S  & RO A D W A Y  IM P R O V E M E N T S $ 1 , 7 0 0 , 0 0 0 $0 $ 1 , 7 0 0 , 0 0 0 $0 $ 0 $ 1 , 7 0 0 , 0 0 0 RP X  IM P R O V E M E N T S ‐  NO N ‐  PF F P $ 2 , 5 0 0 , 0 0 0 $0 $ 5 0 0 , 0 0 0 $2 , 0 0 0 , 0 0 0 $0 $ 2 , 5 0 0 , 0 0 0 J  SE C T I O N    PE D E S T R I A N    BR I D G E $ 2 0 0 , 0 0 0 $0 $ 0 $ 0 $ 2 0 0 , 0 0 0 $200,00 0 VA S T  OA K  ‐ 1S T  LA N D  DE V E L O P M E N T  PH A S E ‐  UT I L I T I E S  & IM P R O V E M E N T S $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 VA S T  OA K ‐  2n d  LA N D  DE V E L O P M E N T  PH A S E ‐  UT I L I T I E S  & IM P R O V E M E N T S $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 VA S T  OA K ‐  3r d  LA N D  DE V E L O P M E N T  PH A S E ‐  UT I L I T I E S  & IM P R O V E M E N T S $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 UD  LL C ‐  4t h  LA N D  DE V E L O P M E N T  PH A S E ‐  UT I L I T I E S  & IM P R O V E M E N T S $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 HI N E B A U G H  CR E E K  VE H I C U L A R    & PE D E S T R I A N  BR I D G E $ 2 , 0 0 0 , 0 0 0 $0 $ 0 $ 2 , 0 0 0 , 0 0 0 $0 $ 2 , 0 0 0 , 0 0 0 HI N E B A U G H  CR E E K  PE D E S T R I A N  BR I D G E $ 2 0 0 , 0 0 0 $0 $ 0 $ 2 0 0 , 0 0 0 $0 $ 2 0 0 , 0 0 0 OF F ‐SI T E  & ON ‐SI T E  IN F R A S T R U C T U R E  TO T A L $ 1 2 , 1 0 0 , 0 0 0 $ 2 , 0 0 0 , 0 0 0 $ 5 , 7 0 0 , 0 0 0 $ 4 , 2 0 0 , 0 0 0 $ 2 0 0 , 0 0 0 $ 1 2 , 1 0 0 , 0 0 0 TO T A L  AC Q U I S I T I O N  IM P R O V E M E N T  EL I G I B L E  PO R T I O N S  & ES T I M A T E D  CO S T S $ 5 2 , 5 7 2 , 8 1 4 $ 1 8 , 9 1 5 , 8 2 1 $ 8 , 5 1 8 , 1 4 8 $ 1 3 , 8 2 4 , 2 4 4 $ 1 1 , 3 1 4 , 6 0 1 $ 5 2 , 5 7 2 , 8 1 4 ON S I T E S 1S T  PH A S E 2 N D  PH A S E ES T I M A T E D  CO S T  BY  PH A S E