HomeMy WebLinkAboutResolution - - 2002-346 - 10/29/2002 RESOLUTION NO. 2002346
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA APPROVING A PROJECT
FINANCING AGREEMENT BETWEEN THE CITY AND
GRANVILLE HOMES, INC., AND AUTHORIZING THE
EXECUTION THEREOF, CONCERNING THE CITY OF
FRESNO COMMUNITY FACILITIES DISTRICT NO. 7
(GRANVILLE HOMES —WILLOW AND TEAGUE)
WHEREAS,the Council of the City of Fresno, California(the"Council'), has initiated
or intends to initiate proceedings to create a community facilities district pursuant to the
Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title
5 of the Government Code of the State of California (the "Act"), to finance certain
development fees and to fund acquisition or construction of certain public facilities; and
WHEREAS, the community facilities district shall be called Community Facilities
District No. 7 (Granville Homes —Willow and Teague) (the "CFD No. 7"); and,
WHEREAS, the Developer deposited with the City, and December4, 2001, Council
adopted Resolution No. 01-389, amending AAR 01-200 to appropriate, $55,0000 for
expenses related to a proposed City of Fresno Community Facilities District No. 7 ("CFD
No. 7") - Tentative Tract Map No. 4868; and
WHEREAS, Granville Homes, Inc., a California corporation ("Granville") Developer
owns the real property in the City of Fresno, that is within Final Tract Map No. 4868,
recorded September 16,2002, in the Official Records of Fresno County, California Volume
66, Page 50-54, Document No. 2002-0164240 (the "Property").
WHEREAS, the purpose of CFD No. 7, if approved, is to finance, through a bond
issue, certain City development impact fees more particularly identified in the attached
agreement (the "City Fees"), and to finance the design, construction and acquisition of
certain water delivery facilities including, without limitation, converting that part of Maupin
Ditch No. 118 and Maupin West Branch No. 374 on the Property to an underground
pipeline delivery system and locating the delivery system within a new District easement
(the "Facilities"); and
WHEREAS, in anticipation of the formation of CFD No. 7 and before bond proceeds
are available, the Developer may pay certain City Fees, and the Developer has or will
complete the Facilities; and
WHEREAS,the City and Developer propose to enterthe attached Project Financing
Agreement that memorializes the understanding of Developer and City regarding the use
of any bond proceeds to reimburse Developer for any City Fees and pay Facilities costs,
and the agreement has been presented to the Council for its consideration.
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Resolution No. 9.OD2_346
Community Facilities District No. 7
Approving A Project Financing Agreement
NOW, THEREFORE, THE COUNCIL RESOLVES as follows:
SECTION 1. The Agreement, substantially in the form attached, and presented to
this Council is approved. The Public Works Director or City Manager or the respective
designee of either one (each an "Authorized Signatory"), is authorized to execute the
Agreement for the City. Each Authorized Signatory is authorized to approve such additions
or changes to the Agreement as the Authorized Signatory shall deem to be in the best
interests of the City, following consultation with and approval as to form by the City
Attorney.
Attachment: Project Financing Agreement
* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO )
CITY OF FRESNO )
I, REBECCA E. KLISCH, City Clerk of the City of Fresno, certify that the Council
of the City of Fresno adopted the foregoing resolution at a regular meeting held the 29th
day of October , 2002.
AYES Boyajian, Calhoun, Castillo, Duncan, Quintero, Ronquillo, Perea
NOES None
ABSENT None
ABSTAIN None
REBECCA E. KLISCH
City Clerk
BY., 12)�Z_!&�
Deputy-
APPROV A O FOR
CITY ATT Y'S OF IC
BY-
De y
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PROJECT FINANCING AGREEMENT
GRANVILLE HOMES, INC., a California corporation(the"Developer"),and the CITY
OF FRESNO, a municipal corporation, (the "City") enter this PROJECT FINANCING
AGREEMENT (the "Agreement') as of 2002, notwithstanding the dates of
execution.
Recitals
A. The Developer has asked the City to establish a community facilities district
pursuant to the Mello-Roos Community Facilities Act of 1982, in California
Government Code, Title 5, Division 2, Part 1, Chapter 2.5 (beginning with Section
53311) (the "Act'), to include the Property ("CFD No. 7").
B. The Developer deposited with the City, and December 4, 2001, Council adopted
Resolution No. 01-389,amending AAR 01-200 to appropriate,$55,000 for expenses
related to a proposed City of Fresno Community Facilities District No. 7 ("CFD No.
7") - Tentative Tract Map No. 4868.
C. Developer owns the real property in the City of Fresno, that is within Final Tract Map
No. 4868, recorded September 16, 2002, in the Official Records of Fresno
County, California Volume 66, Page 50-54, Document No. 2002-0164240. (the
"Property").
D. CFD No. 7, if approved as proposed,will finance, through a bond issue, certain City
development impact fees,more particularly identified in Exhibit A,attached(the"City
Fees"), and will finance the design, construction and acquisition of certain water
delivery facilities including, without limitation, converting that part of Maupin Ditch
No. 118 and Maupin West Branch No. 374 on the Property to an underground
pipeline delivery system and locating the delivery system within a new District
easement within and outside the Property (the "Facilities").
E. In anticipation of the potential formation of CFD No. 7 and bond proceeds from the
related bond issue, Developer may pay certain City Fees and has or will complete
the Facilities.
F. On or about August 7, 2002, the Developer entered certain agreements with the
FRESNO IRRIGATION DISTRICT, a public agency of the State of California (the
"District") under which the Developer agreed to convert, relocate, and construct the
Facilities within a District easement(the"Facilities Construction Agreements"). The
Facilities Construction Agreements include, without limitation, the "Grant of
Easement and Agreement For Substitution of Pipeline For Open Canal Owned by
Fresno Irrigation District," recorded August 13, 2002, in the Official Records of
Fresno County as Document No. 20020136323.
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G. The City and the District propose to enter or have entered a Joint Communities
Facilities Agreement(the "JCFA"), under which the City will set aside$337,569.00
in bond proceeds(the "Acquisition Price"),the maximum sum that the City will pay
the Developer its actual costs, not exceeding the Acquisition Price, for the
Facilities. The Facilities and Acquisition Price are more particularly set forth in
Exhibit A, attached.
H. The purpose of this Agreement is to memorialize the understanding of Developer
and City regarding the use of any bond proceeds to pay the Acquisition Price to
Developer and to reimburse Developer for any City Fees.
Agreement
1 Conditions Precedent. This Agreement shall not be effective until all the
following conditions precedent have been satisfied: (a)The City and District have
entered the Joint Facilities Agreement, (b) Council approves, and the City and
Developer sign this Agreement, (c) Council approves establishing the CFD, and
levying the special taxes (d) the qualified electors approve the CFD and the
special taxes securing the bond issuance, (e) the City authorizes issuing the
bonds. Developer acknowledges that a Council decision to form CFD No. 7 is a
legislative act. The City may not agree that the Council will exercise its legislative
discretion in a particular manner or for a particular result. This Agreement,
therefore, does not contractually, legally, or equitably obligate or commit the
Council to approve the formation of the CFD No. 7.
2 Bond Proceeds. Upon any formation of CFD No. 7, and bond issuance to
finance the Facilities and City Fees, the City shall hold the bond proceeds and
shall have sole responsibility for investing the proceeds, and for applying the
proceeds to pay or acquire the City fees and the Facilities including, without
limitation, the following:
2.1 Facilities. The City's sole responsibility respecting the Facilities shall be
to pay up to the Acquisition Price to Developer for its actual costs of
constructing the Facilities. The District is solely responsible for approving
the design, inspecting and approving the Developer's construction and
installation of the Facilities, and determining that any mechanics' liens or
material men's liens recorded against the Facilities and related property have
been released or, if not released, sufficiently bonded against as required by
law. When the District notifies the City in writing that it has inspected and
approved construction, is satisfied with evidence of lien releases or bonding,
and is prepared to accept the Facilities upon the City's concurrent payment
therefore, the City will pay the Developer its actual Facilities costs up to the
Acquisition Price.
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2.2 City Fees. The City shall hold and disburse the bond proceeds for City Fees
identified in Exhibit A. Should the Developer pay any City Fees, after Council
approves this Agreement,the City and Developer sign the Agreement,and the
Council adopts the Resolution of Intention to form CFD No. 7, and before any
bond closing, the City will reimburse the Developer for the City Fees, provided
the Developer submits proof of payment, and the City Development Department
confirms fee payment. This Agreement does not vest, in Developer,any rights
relating to fees, other than those that may accrue to Developer under the
Subdivision Map Act.
3 Miscellaneous Provisions.
3.1 Entire agreement. The recitals to this Agreement and all exhibits to it, by
this reference, are incorporated into and made a part of this Agreement.
This Agreement contains the entire agreement between the City and the
Developer, respecting payments to Developer from the bond proceeds.
This Agreement supersedes all prior agreements and negotiations between
the City and Developer respecting the subject matter hereof.
3.2 Amendment. City and Developer may amend this Agreement by a writing
duly executed by each.
3.3 Beneficiaries. No person or entity shall be deemed to be a third party
beneficiary hereof, and nothing in this Agreement, express or implied, is
intended to confer upon any person or entity, any rights, obligations, or
liabilities.
3.4 Counterparts. The City and Developer may execute this Agreement in
counterparts, each of which shall be deemed an original, but all of which
shall constitute but one agreement.
IN WITNESS WHEREOF,the parties have executed this Agreement as of the day
and year first above written.
CITY OF FRESNO, a municipalViL E S, INC.
corporation nn
Its: E2 s IJ t-�S "
By:
John Holmes By: tz
Interim Director of Public Works Its:
Attachments:
Exhibit A - City Fees
Exhibit B - The Facilities and Acquisition Price
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EXHIBIT 8
EXHIBIT B
COMMUNITY FACILITIES DISTRICT REPORT
CITY OF FRESNO COMMUNITY FACILITIES DISTRICT NO.7
(GRANVILLE HOMES-WILLOW AND TEAGUE)
TABLE B-III
ENGINEER'S ITEMIZED ESTIMATE OF PROJECT FUNDING COST
UNDERGROUNDING OF EXISTING FRESNO IRRIGATION DISTRICT CANALS
(MAUPIN DITCH NO.118 AND MAUPIN WEST BRANCH NO.374
CANAL UNDERGROUNDING PROJECT: ITEM UNIT TOTAL
WORK ITEM DESCRIPTIONS QUANTITY UMTS COST COST
1.30"R.G.R.C.P Pipe Preface(45 Deg.)Bends 7 Each $ 3,500.00 S 24,500.00
2.30"R.GILC.P Pipe 3,300 LF S 60.00 S 198,000.00
3.24"R.G.R.C.P Pipe 88 LF S 58.00 S 5,104.00
4.21"R.G,R.C.P Pipe 597 LF S 50.00 $ 29,850.00
5.12"R.G.R.C.P Pipe 5 LF $ 43.00 S 215.00.
6,Remove Standpipe/Make Collar 1 Each $ 3,000.00 $ 3,000.00
7. 48"Standpipe 1 Each S 6,000.00 S 6,000.00
8. 48"Metering Standpipe 1 Each $ 14,000.00 S 14,000.00
9. 48"Gate Standpipe 1 Each S 8,000.00 S 8,000.00
10. 72"Backup Standpipe With Baffle Wall 1 Each S 15,000.00 S 15,000.00
11. 60"Backup Standpipe 1 Each $ 9,000.00 S 9,000.00
12. RemovaMeplace 48"Surge Chamber 1 Each $ 12,000.00 $ 12,000.00
13.Vents 7 Each $ 1,500,00 S 10,500.00
14. 120 Ductile Iron Sleeve 60 LF S 40.00 $ 2,400.00
15.Subtotal:Canal Undergrounding Construction S 337,569.00
16.Construction Contingency $
17.Design Engineering and Construction Incidental Costs S
18.Plan Chet Staking and Administration Costs S
19.Total Estimated Project Funding Cost S 337,569.00
Notes:
1. Estimate of cost for Table B-III,items 1 through 14 provided by Granville Homes on October 10,2002,as the
itemized cost estimate for the FID canal undergrounding work.
EXHIBIT B
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