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HomeMy WebLinkAboutCC Resolution 10413 (Fiscal Agreement Third Amendment)CITY OF SAN RAFAEL RESOLUTION NO. 10413 A RESOLUTION APPROVING A THIRD AMENDMENT TO FISCAL AGREEMENT WITH THE SAN RAFAEL REDEVELOPMENT AGENCY, THE COUNTY OF MARIN, THE SAN RAFAEL ELEMENTARY SCHOOL DISTRICT, THE SAN RAFAEL HIGH SCHOOL DISTRICT, AND THE MARIN COMMUNITY COLLEGE DISTRICT, AND AUTHORIZING EXECUTION OF SAID AMENDMENT (REDEVELOPMENT IV) BE IT RESOLVED by the City Council Members of the City of San Rafael as follows: WHEREAS, the City Council of the City of San Rafael (the "City Council") adopted the Amended and Restated Redevelopment Plan for the Central San Rafael Redevelopment Project Area (the "Redevelopment Plan") on October 16, 1989, by Ordinance No. 1572; and WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the San Rafael Redevelopment Agency (the "Agency") is vested with responsibility to implement the Redevelopment Plan and receives tax increment revenue to fund the implementation of the Redevelopment Plan; and WHEREAS, on or about September 11, 1984, the City entered into a fiscal agreement (the "Original Agreement") for the allocation of tax increment monies generated by the area governed by the Redevelopment Plan (the "Project Area") with the Agency, the County of Marin, the San Rafael Elementary School District, the San Rafael High School District, and the Marin Community College District, which agreement was amended by an Amendment to Fiscal Agreement dated December 18, 1984 (the "First Amendment") and a Second Amendment to Fiscal Agreement dated September 5, 1995 (the "Second Amendment") (collectively, the Original Agreement, the First Amendment, and the Second Amendment shall be referred to herein as the "Existing Agreement"); and WHEREAS, in implementing the Existing Agreement, the parties have determined that it is again appropriate and mutually beneficial to amend the Existing Agreement through a Third Amendment to Fiscal Agreement (the "Third Amendment") in order for the Agency to receive additional tax increment funds; and WHEREAS, the City has determined that its respective goals, objectives, and policies for the Project Area can be facilitated through the amendment of the Existing Agreement; and WHEREAS, the City desires to enter into the Third Amendment, whereby the Agency shall claim and receive additional tax increment revenues for the implementation of the Redevelopment Plan and the elimination of conditions of blight in the Project Area. 141\01\121048.1 ORIGINAL AL \ J NOW, THEREFORE, IT IS HEREBY RESOLVED as follows: Section 1. The City Council hereby finds and determines that the Third Amendment, which will allow the Agency to claim and receive additional tax increment revenues, will assist in the implementation of the Redevelopment Plan and the elimination of conditions of blight in the Project Area. Section 2. The City Council hereby approves the Third Amendment and authorizes the City Manager or the Director of Economic Development to execute on behalf of the City the Third Amendment, substantially in the form on file with the City Clerk, with such minor changes as are approved by the City Manager or the Director of Economic Development, such approval to be conclusively evidenced by the execution of the Third Amendment. Section 3. The City Council hereby authorizes the City Manager or the Director of Economic Development to take such other actions and execute such other documents as are appropriate to effectuate the intent of the executed Third Amendment. Section 4. This Resolution shall take immediate effect from and after its passage and approval. 141\01\121048.1 I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael held on June 7, 1999, by the following vote: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Jeanf e M. Leoncini, Cit Clerk 141\01\121048.1 THIRD AMENDMENT TO FISCAL AGREEMENT X s Third Amendment to Fiscal Agreement (the "Third Amendment") is made this day of %%i-, , 1999, by and between the San Rafael Redevelopment Agency ("Agency") and the wing parties (collectively "Taxing Agencies"): County of Marin ("County") City of San Rafael ("City") San Rafael Elementary School District ("ESD") San Rafael High School District ("HSD") Marin Community College District ("CCD") with reference to the following: A. On or about September 11, 1984, the Agency entered into the "Fiscal Agreement" (the "Original Agreement") with the Taxing Agencies which agreement was amended by the "Amendment to Fiscal Agreement" (the "First Amendment") dated December 18, 1984 and the "Second Amendment to Fiscal Agreement" dated September 5, 1995. The "Fiscal Agreement" the "Amendment to Fiscal Agreement" and the "Second Amendment to Fiscal Agreement" are referred to herein as the "Existing Agreement." B. The parties desire to amend the Existing Agreement in the manner set forth below in order to allow for the Agency's limited additional receipt of tax increment so that the Agency can raise additional funds to make improvements that will benefit the area governed by the Redevelopment Plan for the Central San Rafael Redevelopment Project. THEREFORE, the parties agree as follows: Section 1. Amendment to Paraeraph 2 1. Paragraph 2 of the Original Agreement as amended by the First Amendment and Second Amendment is hereby amended to provide as follows: 112. Claim of Increment. In any year the Agency shall claim and receive tax increment from the Central San Rafael Redevelopment Project Area in an amount not in excess of the following, provided, that the claim and receipt for the obligations described in subparagraphs (a) and (b) of this Paragraph 2 shall be superior to and have priority over all other claims and receipts to the fullest extent_ permitted by law: (a) For the payment of debt service on tax allocation bonds issued by the Agency after July 1, 1995, an amount equal to 125% of Maximum Annual Debt Service (as such term is defined in Agency Resolution No. 77-66 as amended by Agency Resolution No. 91-6) on such bonds, provided, however, the agency shall not issue such bonds in which the Maximum Annual Debt Service exceeds $631,500 and that amount may 141k01\117545.2 05/12/99 1 1 be used to pay debt service on the Agency's Tax Allocation Refunding Bonds Series 1977 and/or to pay debt service on tax allocation bonds issued by the Agency after July 1, 1995. (b)(i) For payment of debt service on the Agency's Central San Rafael Redevelopment Project Tax Allocation Refunding Bonds, Series 1992, or bonds that refund or refinance such bonds, an amount equal to 125% of Maximum Annual Debt Service (as such term is defined in Agency Resolution No. 77-69 as amended by Agency Resolution No. 92-6) on such bonds, provided, however, that the Agency shall not issue such bonds in which the Maximum Annual Debt Service exceeds $1,440,000. (ii) For payment of debt service on tax allocation bonds issued by the Agency after January 1, 1999, an amount equal to 125% of Maximum Annual Debt Service (as such term is defined in Agency Resolution No. 77-66 as amended by agency Resolution No. 92-6) on such bonds, provided, however, the Agency shall not issue such bonds in which the Maximum Annual Debt Service exceeds $1,500,000. Tax increment may be claimed and received pursuant to subparagraph (ii) beginning with the 1999-2000 fiscal year. (c) Any amount necessary to make payments to the County pursuant to subparagraph 1(a) of the agreement which is attached hereto as Exhibit A. (d) Any amount the Agency is required to set aside into a separate fund pursuant to Health & Safety Code Sections 33334.2, 33334.3 and 33334.6 to meet the Agency's low and moderate income housing obligation." Section 2. Amendm t to Para=ph 4 Paragraph 4 of the Original Agreement shall be amended to add the following: "The Agency shall use the proceeds of tax allocation bonds issued after January 1, 1999 and secured by the tax increment funds received pursuant to subparagraph 2(b)(ii) above (as amended by the Third Amendment) for the purposes set forth in Exhibit E attached to the Third Amendment. The parties recognize that the dollar amounts set forth in the attached Exhibit E with respect to each specific project or purpose are estimates and that the Agency may spend more or less than the amounts set forth in Exhibit E for a particular project or purpose." 141\01\117545.2 2 Section 3. Addition of Exhibit E Exhibit E attached to this Third Amendment is hereby incorporated in and made a part of the Original agreement as amended by the First Amendment, the Second Amendment, and this Third Amendment. Section 4. Effect of Amendment Except as specifically amended by this Third Amendment, the Original Agreement as amended by the First Amendment and Second Amendment shall remain in full force and effect. ATTEST: SAN RAFAEL REDEVELOPME AGENCY 1 12kgency Secret By: od Goul ,Executive hector ATTEST: CITY OF S 1 Citify -Clerk By: od ould, City Manager ATTEST: —"CO/ ' Y OF MARIN Clerk C —15Y: Annette Rose President, Board of Name Title Supervisors 141\01\117545.2 05/12/99 3 SAN RAFAEL ELEMENTARY SCHOOL DISTRICT �k�vv Name Title SAN RAFAEL HIGH SCHOOL DISTRICT Y:CtYbarq F• Sm�-}�h erin ncien�' Name Title COMMUNITY COLLEGE DISTRICT B aL =mw e M. fv4 res i -Name Title 141\01\117545.2 05/12/99 4 V EXHIBIT E PROPOSED REDEVELOPMENT PROJECTS Portion of Pickleweed Park All -Weather Playing Fields Pickleweed Gymnasium and Facilities Expansion Community Economic Development Opportunity Grand Avenue Bridge and Street Widening Mission & Lincoln Avenue Widening Portion of Downtown Parking Structure Gerstle Park Area Childcare Facility Bret Harte Storm Drainage West Francisco Blvd. Utility Undergrounding San Rafael City Schools Projects Marin Community College Projects TOTAL S 950,000 1,500,000 1,250,000 3,000,000 4,000,000 3,000,000 1,350,000 2,000,000 1,500,000 4,200,000 307,592 S 23,057,592 PUBLIC IMPROVEMENTS AGREEMENT (ELEMENTARY AND HIGH SCHOOL DISTRICTS) (1999 BOND ISSUE) This Agreement is made this day of d ,1999 by and between the San Rafael Redevelopment Agency (the "Agency") and the San Rafael High School District ("HSD") (ESD and HSD are referred to collectively as the 'Districts") with reference to the following facts: A. The Agency has responsibility for implementing the Redevelopment Plan for the Central San Rafael Redevelopment Project (the "Plan") and, pursuant to the California Community Redevelopment Law, the Agency receives tax increment revenue to fund that implementation of the Plan. B. Pursuant to an agreement between the Agency, the Districts and other taxing entities (the "Fiscal Agreement"), the amount of tax increment revenues the Agency receives is limited. C. The Agency, the Districts and the other parties thereto have agreed to the Third Amendment to Fiscal Agreement to allow the Agency to receive certain limited additional tax increment revenue, and, in consideration for the agreement of the Districts to agree to the Third Amendment to Fiscal Agreement, the Agency has agreed to enter into this Agreement to provide funding for improvements for the benefit of the Districts and the area governed by the Plan. THEREFORE, the Agency and Districts agree as follows: 1. Funding of JInprovemj=. Subject to the provisions of this Agreement, the Agency shall provide funding of $2,200,000 (plus interest earnings as provided in Paragraph 3 below) for capital facility public improvements designated by ESD, and $2,000,000 (plus interest earnings as provided in Paragraph 3 below) for capital facility public improvements designated by HSD. 2. Issuance of Bonds. The Agency's obligation to provide the funding described in Section 1 above shall be conditioned upon the Agency issuing bonds after the date of this Agreement providing gross proceeds of not less than $20,000,000. The Agency shall make best efforts to issue those bonds by September 1, 1999. 3. vital Facilities Fund. Within 20 days after issuance of the bonds referred to in Paragraph 2 above, the Agency shall deposit the amounts specified in Paragraph 1 into an interest earning account or instrument designated and controlled by the Districts (the "Capital Facilities Fund") to be expended as designated by ESD and HSD in accordance with this Agreement. The specific type of account or investment into which the Capital Facilities Fund is placed shall be determined by the Districts. Any interest or other return on funds in the Capital Facilities Fund shall become part of the Capital Facilities Fund and shall be allocated among the Districts as determined by the Districts. The Districts shall restrict the yield on the Capital Facilities Fund if requested by the Agency in order to comply with provisions of the Internal 141\011120790.2 COPY Revenue Code and implementing regulations applicable to investment of the proceeds of the tax- exempt bonds referred to in Paragraph 2 above. 4. Section 33445 Findings. If the Districts desire that a public improvement project be funded from the Capital Facilities Fund pursuant to this Agreement and that public improvement project has not been approved pursuant to Paragraph 6 below, the Districts shall provide written notice to the Agency setting forth a description of the project and its estimated costs. Upon receipt of such notice, the Agency shall take all steps reasonably necessary to cause the city council of the City of San Rafael ("City Council") to promptly consider approval of the Agency's funding of the project pursuant to Health and Safety Code Section 33445. In addition, if deemed necessary by the Agency, the governing board of the Districts ("Governing Board") shall promptly consider approval of the Agency's funding of the project pursuant to Health and Safety Code Section 33445. The parties understand and agree that a project shall not be fimded from the Capital Facilities Fund pursuant to this Agreement unless the City Council and, if deemed necessary by the Agency, the Governing Board have approved the Agency's funding of the project pursuant to Section 33445 after holding the public hearing and preparing the summary required under Health and Safety Code Section 33679, if necessary. The parties agree that this Agreement is not intended to and shall not in any way limit the discretion of the City Council or the Governing Board to approve a project under Health and Safety Code Section 33445 or to determine if sufficient facts exist to make the findings required for approval of a project pursuant to Health and Safety Code Section 33445. For the purposes of this Agreement, references to Health and Safety Code Sections 33445 and 33679 shall include any successor or similar statutes governing the Agency's expenditure of fluids for public improvements. 5. Compliance with Tax Law. A project shall not be funded under this Agreement if the expenditure of the proceeds of the bonds referred to in Section 2 above for that project would cause those bonds to be treated as an obligation not described in Section 103(a) of the Internal Revenue Code. The Agency may require that the Districts, before expending funds from the Capital Facilities Fund for a project, provide to the Agency such assurances as the Agency may reasonably request that the expenditure will not cause the bonds to be an obligation not described in Section 103(a) of the Internal Revenue Code. 6. Contemplated Projects. As of the date of this Agreement, the parties contemplate that, provided the Agency sells bonds as provided in Paragraph 2 above, the Agency will provide funding for the projects described in the attached Exhibit A, that the findings described in Paragraph 4 above can be made with respect to those projects and that the expenditure of funds for those projects will not cause the bonds referred to in Paragraph 2 above to be an obligation not described in Section 103(a) of the Internal Revenue Code. To facilitate the funding of the projects in the attached Exhibit A, within ninety (90) days following execution of this Agreement, the Districts with assistance from the Agency shall develop information necessary for the making of the findings specified in Health and Safety Code Section 33445. Within one hundred and twenty (120) days following the date of execution of this Agreement, the Governing Board shall consider the making of the Health and Safety Code Section 33445 findings for and approval of the projects listed in Exhibit A. Provided such findings are made and approval given, the Agency shall cause the City Council to also consider the making of the Health and Safety Code Section 33445 findings for and approval of the projects listed in Exhibit A. The 141101\120790.2 Agency shall recommend to the City Council approval of the projects. The City Council consideration shall occur within sixty (60) days after the date on which the Governing Board makes its findings. This Paragraph 6 shall not, however, preclude the Districts from designating projects other than those described in Exhibit A for funding pursuant to this Agreement or require that the City Council or the Governing Board make the findings specified in Paragraph 4 above. 7. Governing Law. This Agreement shall be governed by the laws of the State of California. 8. Inte at�ion. This Agreement represents the entire agreement of the parties regarding the subject matter of this Agreement. 141\011120790.2 9. ,state Pavments to Districts. If an expenditure from the Capital Facilities Fund pursuant to this Agreement will result in a reduction in subvention payments from the State of California to any of the Districts, then the parties shall negotiate in good faith amendments to this Agreement that would prevent that expenditure from resulting in a reduction of subvention payments. ATTEST: gency Secre,tary APPROVED AS TP ORM: Aggencyyel 1411011120790.2 SAN RAFAEL REDEVELOPMENT AGENCY By: Rod Gould Executive Director SAN RAFAEL HIGH SCHOOL DISTRICT SAN RAFAEL ELEMENTARY SCHOOL DISTRICT V0710 [AL CAPITOL TWK0Vn= RAFAE2LVELOp The projects listed below, and tasks and items associated with and accessary to implement those projects, are those considered for Binding using San Rafael Redevelopment funds in accordance with the Public Improvement Agreement within which this Exhibit A is incorporated. llrese projects need to be completed at all of the following schools: Bahia Vista, Coleman, Gleawood, Gailinas, Old Gallinas, San Pedro, Short School, Lwrd Dell, Sun Valley, Davidson, Sm Rafael High School, Madrone High School and Terra Linda High School. 1. Replace Heating/AC Package Units 2. Replace Heating/Lighting Time Clock 3. Replace Electric Panels a. Upgrade Main Electric Distribution PaneVrransformer S. New Fire Alarm System 6. New ClocklBdIs 7. New Intercorw7aging Telephone System F. New Power for Technology 9. New Wiring for Technology 10. New Classroom Lighting 11. New Exterior Lighting 12. Replace Restroom Fixtures 13. Replace Underground Supply/Wa ste Lines 14. Paint/Repair Bxterior 15. Paint/Repair Interior 16. Replace Doors and Floors 17. Replace Existing Roofing 18. Replace Guttors/Downspouts 19. AC Overlay - Parking LotMaygrounds 20. Slurry Seal and Stripe Pari:ing Lot&Tlaygrounds 21. Remove/Replace Uplifted ConcreWAC 22. Upgrade Play Areas, Play Structures 23. Replac /Repair and Extend Irrigation Systems 24. Replace Cushioning Materials 25. Renovate Athletic Turf 26. Grounds Improvement 27. Add/Replace portabicClassrooms 28. Renovate Classrooms 29. Replace Boilers —NA 30. 'Reopen Locher Rooms 31. "New Gym U&Wo8 32. MeplaoMbnovate Locker Rooms 33. •Replace Drii as Fountains 34. •Emct, Repair, Extend Covered Walkways 35. •New Covered Walkway 36. *Replace Bleachers 37. "Replace Basketball BackboardsUmms 38. "ReplaswPool and Pool Lights 34. *Ornamental Landscaping 40. •Upgrade Trash Compactor 'Secondary School Rejects only urYcAnTaft vi" PUBLIC IMPROVEMENTS AGREEMENT (COLLEGE DISTRICT) (1999 BOND ISSUE) This Agreement is made this I &I, day of, 1999 by and between the San Rafael Redevelopment Agency (th A�gency")� and the Marin Community College District ("District") with reference to the following facts: A. The Agency has responsibility for implementing the Redevelopment Plan for the Central San Rafael Redevelopment Project (the "Plan") and, pursuant to the California Community Redevelopment Law, the Agency receives tax increment revenue to fund that implementation of the Plan. B. Pursuant to an agreement between the Agency, the District and other taxing entities (the "Fiscal Agreement"), the amount of tax increment revenues the Agency receives is limited. C. The Agency, the District and the other parties thereto have agreed to the Third Amendment to Fiscal Agreement to allow the Agency to receive certain limited additional tax increment revenue, and, in consideration for the agreement of the Districts to agree to the Third Amendment to Fiscal Agreement, the Agency has agreed to enter into this Agreement to provide funding for improvements for the benefit of the District and the area governed by the Plan. THEREFORE, the Agency and District agree as follows: 1. Fundinv of Improvements. Subject to the provisions of this Agreement, the Agency shall provide funding of up to $ 3 0 7 , 5 9-2(plus interest earnings as provided in Paragraph 3 below) for public improvements designated by the District. 2. Issuance of Bonds. The Agency's obligation to provide the funding described in Section 1 above shall be conditioned upon the Agency issuing bonds after the date of this Agreement providing gross proceeds of not less than $ 2 0, 0 0 0, 0 0 0. The Agency shall make good faith efforts to issue those bonds. 3. Improvement Fund. Promptly after issuance of the bonds referred to in Paragraph 2 above, the Agency shall deposit into an interest earning account or instrument (the "Improvement Fund") with a financial institution selected by the Agency subject to the approval of the District (which approval shall not be unreasonably withheld) the following: $3 0 7, 5 9 2 to be expended as designated by the District. The specific type of account or investment into which the Improvement Fund is placed shall be determined by the Agency with consultation with the District. Any interest or other return on funds in the Improvement Fund shall become part of the Improvement Fund and shall be allocated to the District for expenditure. The parties understand and agree that the Agency may be required to restrict the yield on the Improvement Fund in order to comply with provisions of the Internal Revenue Code and implementing regulations 141\01\120795.1 COPY applicable to investment of the proceeds of tax-exempt bonds. Except as provided in Paragraph 7 below, funds in the Improvement Fund may not be disbursed without the written approval of each of the District. 4. 5r ion 33445 FindinZ. If the District desires that a public improvement project be funded pursuant to this Agreement, the District shall provide written notice to the Agency setting forth a description of the project and its estimated costs. Upon receipt of such notice, the Agency shall take steps to cause the city council of the City of San Rafael ("City Council") to promptly consider approval of the Agency's funding of the project pursuant to Health and Safety Code Section 33445. In addition, if deemed necessary by the Agency, the governing board of the District ("Governing Board") shall promptly consider approval of the Agency's funding of the project pursuant to Health and Safety Code Section 33445. The parties understand and agree that the Agency shall not be obligated to provide funding for a project pursuant to this Agreement unless the City Council and, if deemed necessary by the Agency, the Governing Board have approved the Agency's funding of the project pursuant to Section 33445 after holding the public hearing and preparing the summary required under Health and Safety Code Section 33679, if necessary. The parties agree that this Agreement is not intended to and shall not in any way limit the discretion of the City Council or the Governing Board to approve a project under Health and Safety Code Section 33445 or to determine if sufficient facts exist to make the findings required for approval of a project pursuant to Health and Safety Code Section 33445. For the purposes of this Agreement, references to Health and Safety Code Sections 33445 and 33679 shall include any successor or similar statutes governing the Agency's expenditure of funds for public improvements. 5. Com In iance With Tax Law. The Agency shall not be obligated to fund a project under this Agreement if the expenditure of the proceeds of the bonds referred to in Section 2 above for that project would cause those bonds to be treated as an obligation not described in Section 103(a) of the Internal Revenue Code. The Agency may condition the disbursement of funds pursuant to this Agreement on the District providing such assurances as the Agency may reasonably request that the expenditure will not cause the bonds to be an obligation not described in Section 103(a) of the Internal Revenue Code. 6. _Qntemplated Projects. As of the date of this Agreement, the parties contemplate that, provided the Agency sells bonds as provided in Paragraph 2 above, the Agency will provide funding for the projects described in the attached Exhibit A, that the findings described in Paragraph 4 above can be made with respect to those projects and that the expenditure of funds for those projects will not cause the bonds referred to in Paragraph 2 above to be an obligation not described in Section 103(a) of the Internal Revenue Code. This Paragraph 6 shall not, however, preclude the District from ' designating projects other than those described in Exhibit A for funding pursuant to this Agreement or require that the City Council or the Governing Board make the findings specified in Paragraph 4 above. 141\01\120795.1 2 7. Administration of Pavment4. When the Agency will provide funds for a project pursuant to this Agreement, the Agency shall disburse funds to the contractor of contractors undertaking the work for the project pursuant to procedures reasonably agreed to between the Agency, the District and the contractor or contractors assuring that the funds have been or will be used for the intended purpose under this Agreement. 8. _Ooveming Law. This Agreement shall be governed by the laws of the State of California. 9. Inte tion. This Agreement represents the entire agreement of the parties regarding the subject matter of this Agreement. 141\01\120795.1 3 10. State Pavments to the Distri c . If an expenditure by the Agency pursuant to this Agreement will result in a reduction in subvention payments from the State of California to the District, then the parties shall negotiate in good faith amendments to this Agreement that would prevent that expenditure from resulting in a reduction of subvention payments. ATTEST: gency Secretary 141\01\120795.1 4 SAN RAFAEL REDEVELOPMENT AGENCY By: od Gould C�z Executive Director ,47 / MARIN • ICOLLEGE DISTRICT cy A M EI& E By: EXHIBIT A Community College District Projects 1. Network Infrastructure 2. Matching Funds for Handicap Barrier Removal 3. Matching Funds for Scheduled Maintenance Projects TOTAL 307,592