HomeMy WebLinkAboutContracts & Agreements_62-2003C�7
0 R R I C K
July 11, 2003
Ms. Lorrie Poyzer
City Clerk
City of Redlands
P.O. Box 3005
Redlands, CA 92373
ORRICK, NtRRINGTON 8 SUTCLIFT€ LLP
OLD FO)ERAL RESERVE SANK BUILDING
400 SANSOM€ STREET
SAN FRANCISCO,CA 94111-3143
tel 415-392-1122
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Direct Dial:
(415) 773-5467
Re: Executed Original of Joint Community Facilities Financing Agreement;
Community Facilities District No. 2003-1 Citrus Plaza
Dear Ms. Poyzer:
At the request of Emil Marzullo, Director of the Special Districts Department for
the County of San Bernardino, enclosed for the City's records please find a fully -executed
original of the Joint Community Facilities Financing Agreement for this community facilities
district of the County. This agreement was approved by your City Council on April 15, 2003.
ry truly yo s,
-10 Samuel A. Sperry
encl: signed original of agreement
cc (without enclosure): Emil Marzullo
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Community Facilities District No. 2003-1 - Citrus Plaza - Municipal Utilities
Director Phelps reported the San Bernardino County Board of Supervisors has
approved various action required to form a Community Facilities District (CFD)
for the Citrus Plaza Project. In order to complete the documents for the CFD to
issue bonds, the County and City need to have an agreement that the City
consents to the establishment of the CFD and allows for the City to accept
future ownership and transfer of title of the specified improvements which either
have been and will be installed by the developer, Redlands Joint Venture, LLC,
and acknowledges fees payable to the City by the developer for water and sewer
service. The CFD will finance public infrastructure costs including water,
sewer, and other public improvements for the Citrus Plaza Project, Phase I and
I1, within the unincorporated area known as the "Donut Hole." Emil Marzullo,
Director of the County Special Districts Department, was present to answer any
questions. Councilmember Gilbreath moved to approve the joint community
facilities financing agreement with the County of San Bernardino for water and
sewer, facilities and fees, related to the Citrus Plaza Project. Motion seconded
by Councilmember Peppler and carried unanimously.
Smoking Prohibition - Public Works Director Mutter reported the Parks
Commission, on March 13, 2003, discussed an item regarding tobacco -free
areas in parks in the vicinity of playgrounds and sports fields. The item was
presented by the American Cancer Society Clubs at Redlands High School and
Redlands East Valley High School. The Parks Commission supported the
request and recommended the City Council initiate action to prepare the
appropriate ordinance. Urging the City Council to approve this
recommendation were: Ann Davis -Schultz from the American Cancer Society
and Coalition for Tobacco Free County; students from the American Cancer
Society Clubs: Srikanth Krishnan, Jessica Kanady, Steven Kim, Carlene E.
Henriques; Judy Dods, Advisor for the Redlands High School American Cancer
Society Club; representing the SADD Club Kristen Framer, Lauren Donaldson
and Carolyn Kim; Kaitlyn Mazzei, a student from Loma Linda Junior High
School representing Tobacco Use Reduction Now; and Kay Adkins, San
Bernardino County Department of Public Health for Tobacco Use Reduction
Now. Kenneth Hunt commended the students for getting involved in
government but expressed concerns against the proposal which he felt was
based on "big brother mentality" and asked Councilmembers "where do we
stop?" Councilmembers discussed at length the boundary distance 25 feet
versus 50 feet versus 100 feet and commended this issue back to staff for study
and recommendation. Councilmember Peppler moved to direct staff to prepare
the appropriate ordinance for the prohibition of smoking in City parks within the
vicinity of playgrounds, sports fields, and Community Field. Motion seconded
by Councilmember George and carried unanimously. City Attorney McHugh
promised the proposed ordinance would be presented at the May 6, 2003, City
Council meeting.
April 15, 2003
Page 4
JOINT COMMUNITY FACILITIES FINANCING AGREEMENT
County of San Bernardino
Community Facilities District No. 2003-1
(Citrus Plaza)
Recitals
A. The parties to this agreement are the County of San Bernardino, a
California county (the "County") and political subdivision of the State of California, and the
City of Redlands, a general law city (the "City") (collectively, the "Parties")
B. The effective date of this agreement shall be April 15 , 2003.
C. This agreement is made under the authority of and to establish compliance
with the provisions of California Government Code Section 53316.2.
D. The County proposes to conduct proceedings under the Mello -Roos
Community Facilities Act of 1982 (the "Act") to form its Community Facilities District No.
2003-1 (Citrus Plaza), County of San Bernardino, State of California" ("CFD No. 2003-1") to
finance certain public facilities and fees (the "Facilities" and the "Fees," respectively) relating to
a land development project known as the "Citrus Plaza" (the "Development Project") being
undertaken by Redlands Joint Venture, LLC (the "Developer").
E. The County has entered into an Acquisition and Disclosure Agreement
(the "Acquisition Agreement"), dated as of February 4, 2003, with the Developer, under the
terms of which, and subject to the terms and conditions of which, the Developer has agreed to
provide for the construction and installation of the Facilities, and the County has agreed to utilize
proceeds of sale of limited obligation special tax bonds (the "Bonds") of CFD No. 2003-1 to
acquire the Facilities upon completion and to pay the Fees (or to reimburse the Developer for the
Fees, to the extent previously paid by the Devloper).
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F. The Facilities and Fees include not only Fees payable to the County and
Facilities which, upon their acquisition by the County pursuant to the Acquisition Agreement
will be owned and managed by the County, but also Fees payable to the City (the "City Fees")
and improvements the ownership of which will be transferred to the City (the "City Facilities")
and other improvements the ownership of which may be transferred to other agencies in addition
to the Parties.
G. The City desires to cooperate with the County in accomplishing the
payment of the City Fees and the construction and installation of the City Facilities as authorized
Fees and Facilities of CFD No. 2003-1, and to confer upon the County full power to include the
City Fees and the City Facilities within the authorized Facilities and Fees of CFD No. 2003-1,
with ownership of the City Facilities to be transferred to the City following acquisition thereof
from the Developer pursuant to the Acquisition Agreement.
H. In consideration for the mutual undertakings of the Parties stated herein,
the Parties agree as follows.
A rem ement
1. The foregoing recitals are true and correct, and each of the Parties expressly so
acknowledges.
2. This agreement is determined to be in the best interests of the residents of the
County and the City and the future occupants of the commercial structures within CFD No.
2003-1.
3. Pursuant to Government Code Section 53316.2, the County will conduct
proceedings under the Act to form CFD No. 2003-1 and to authorize the payment of the Fees and
the acquisition, construction and installation of the Facilities, including but not limited to the
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City Fees and the City Facilities. The City Fees and the City Facilities shall be those described
on Exhibit A. attached hereto and incorporated herein by this reference. In the event that CFD
No. 2003-1 does not provide sufficient funds to finance all of the City Facilities and City Fees
which it will be authorized to finance, the County agrees to provide in the Acquisition
Agreement that any portion of the City Facilities and the City Fees not funded through CFD No.
2003-1 shall be funded by the Developer. The County agrees to keep the City informed of the
status of such proceedings.
4. The County shall administer CFD No. 2003-1, 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 "Code"). The City
will not participate in nor be considered a participant in the proceedings respecting CFD No.
2003-1 (other than as a Party to this Agreement), nor will it, for any purpose, be or be considered
to be an issuer of Bonds; provided that for the limited purposes of those provisions of the Code
and regulations issued thereunder pertaining to arbitrage, the City shall be considered the issuer
of any bond issue in the same ratio that usable proceeds of that issue are to be applied to the City
Facilities and the City Fees.
5. The County will defend, indemnify and hold the City harmless from any and all
claims or suits arising out of the conduct of the proceedings respecting CFD No. 2003-1, the
authorization of acquisition, construction, installation and financing of the Facilities and the
Fees, the authorization for the levy, collection and enforcement of payment of the special tax and
the authorization for, issuance, sale and administration of the Bonds.
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6. The County agrees to have prepared, and keep available to the City, records of all
proceedings of CFD No. 2003-1, including but not limited to �a) acquisition of completed
facilities which are included in the City Facilities and transfer of ownership thereof to the City,
(b) disbursements of special tax and bond sale proceeds, and (c) the administration of the various
funds and accounts to be established with respect to CFD No. 2003-1 for the management of
special tax proceeds, bond sale proceeds, and the investment earnings on both.
7. Transfer of title to the City Facilities shall be accomplished in the manner and
pursuant to such procedures as customarily apply to the transfer of title to the City of facilities
constructed and installed by a developer. The City may establish such separate agreement as the
City deems customary or appropriate with the Developer respecting the City Fees and the City
Facilities, including the transfer of title thereto; provided that the City shall not provide in any
such agreement for reimbursement or refund payments to the Developer from either water or
wastewater revenues with respect to the City Facilities and the City Fees, it being expressly
agreed by the City that any such reimbursement or refund payments payable with respect to any
portion of the City Fees or any portion of the cost and expense of the construction and
installation of the City Facilities shall be paid to the County for the benefit of CFD No. 2003-1.
Subject to completion of the construction and installation of the City Facilities to the satisfaction
of the City in the City's sole discretion (such discretion not to be unreasonably exercised), the
City agrees to accept ownership of the City Facilities, to take maintenance responsibility for all
of said City Facilities upon acceptance thereof, and to defend, indemnify and hold harmless the
County and CFD No. 2003-1 from any and all claims arising out of all aspects of planning,
designing, acquiring, constructing, reconstructing, rehabilitating, furnishing and equipping the
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City Facilities where the County and CFD No. 2003-1 are not otherwise indemnified by the
Developer.
S. The City hereby consciits to the establishment of CFD No. 2003-1 and consents to
the assumption of jurisdiction by the County for the proceedings respecting CFD No. 2003-1
with the understanding that the County may hereafter take each and every step required for or
suitable for consummation of the proceedings, the payment of the City Fees and the acquisition
of completed City Facilities, the levy, collection and enforcement of the special taxes, and the
issuance, sale, delivery and administration of the Bonds.
9. This agreement may be amended by a writing signed by the Parties, except that no
amendment may be made after the issuance of Bonds 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.
10. This agreement shall remain in force until all Bonds have been retired and the
authority to levy the special tax conferred by CFD No. 2003-1 proceedings has ended.
IN WITNESS WHEREOF the Parties have caused this agreement to be executed by their
authorized representatives as of the effective date stated above.
COUNTY OF SAN BERNARDINO
County nistrative Officer
Attest:
Clerk of the Board of Supervisors
B
7Z`4
CITY OF REDLANDS
Attest:
City Clerk
By��
Mayor
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V
It
EXHIBIT A
DESCRIPTION OF CITY FEES AND CITY FACILITIES
A. Phase I of Citrus Plaza Development Project
1. water system items:
a. water system improvements per Redlands' municipal utilities requirements
b. Redlands' Water Capital Improvement Charges
C. Redlands' Water Source Acquisition Charges
2. sewer system items:
a. sewer system improvements per Redlands' municipal utilities requirements (including
relocation of sewer lines and appurtenant facilities from prior location across the Citrus
Plaza site to new location in Citrus Plaza Drive and San Bernardino Avenue)
b. Redlands' Seaver Capital Improvement Charges
B. Phase 2 of Citrus Plaza DevelO meat Project
1. water system items:
a. water system improvements per Redlands' municipal utilities requirements
b. Redlands' Water Capital Improvement Charges
c. Redlands' Water Source Acquisition Charges
2. sewer system items:
a. sewer system improvements per Redlands' municipal utilities requirements
b. Redlands' Sewer Capital Improvement Charges
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40318-34 SS4