HomeMy WebLinkAbout1985/10/16 - Agenda Packet - RDAC `CAMq
� � y CITY OF
RAND -10 CUCM40NGA
o a REDEVELOPMENT AGENCY
AGENDA
1977
Lions Park Community Center
9161 Baso Line Road
Rancho Cucamonga, California
D"C beer 16.
t. r.r. m meal
A. Roll Callt Wright __, Buquat _. Mikels
Dahl _, and Ping
B. Approval of Minutest None
• 2. CONSENT CuQTM
The follming Consent Calendar items+ are expected to be
routine and 000-contto►ersial. They will be acted opal by
the RDA at one time eitbout discussion.
a• Approval of Amendment to Rules and Regulations of 1983,
1981 mad 1985 Residential Rome Mortgage Revenue Bond
Program.
RESOLUTION NO. RA 85 -1i
A RESOLUTION OF =EZ REDE9ELOTMENT AGENCY OP
THE CITY OF RANCHO CUCAMONGA, CALIFomm
AMENDING THE RULES AND RICULATIONS RELATING
TO THE 1983. 1984 AND 1985 SERIES "A"
RESIDENTIAL HOME REVENUE BOND PROG.W
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PedGV6I0Puent Agency Agppdp -2- Oc0bpr 16, 1985
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RESOLUTION CO. RA 65 -12 g
A RESOLUTION OF THE REDLVELGP/.'ENT AGENCY OF
THE CITY OF RANCHO CUCANOFOA. CALIFORNIA.
INDICATING ITS INT2HT IO PRO91OE FOR THE
ISSUANCE OF OBLIGATIONS AND THL INSTALLIfENT
SALE FINAVCING O! A CONNERCIAL /INDUSTRIAL
OFFICE PRDIEGT BY A. H. REITER I :EV3LOPMENT
COMPANY
B. COHrRA;T JnVFE1 THE RANCHO CUC MONA RENMX OPL4a8T 10
/GENCT. TSN CITY AND THE FOOTHLL /jLLTROTFCTIOa
DIBTRTCT W 8"04) (Y -CO 85-1121 FOR TNT QCRC 9E Op
AF ALLI I. UDER TRUCK
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CITY OF RANCHO CIJCAMONGA _
REDEVELOPMENT AGENCY
STAFF REPORT
DATE: October 16, 1985
TO: Chairman and Members of the Redevelopment Agency
FROM: Jack Lom, AICP, Deputy Executive Director
BY: Linda D. Daniels, Senior Redevelopment Analyst
SUBJECT: AMENDMENT TO RULES AND REGULATIONS OF 1983 1984
�AA6�vA3 -3Tnf t FAMiL4 ilCa[b IVIJAL' mUkT�
ABSTRACT: Pules and Regulations for the Single Family Residential
Mortgage and Progrom were adopted In 1983. These Rules and Regulations
govern all subsequent Programs and Include language provisions to omend and
update those sections dealing with acquisition costs of new homes and medlon
household Income.
BACKGROUNDt Dr. Joseph Jenezyk of Empire Economics, feasibility consultant
or the Bond Programs, has provided updated Information regarding fire maximum
home price limits for purchasers participating In the 19e3, 1984 and 1985 Single
Family Mortgage Rovenve Bond Programs. His continuing research ensures that
the most recent houting price limits are used for the bond programs. This housing
price update was furnished to us using the August 1985 revision of the Safe Harbor
Limitations for Mortgage Subsidy Bonds. The Safe Harbor Limitations are
published by the U.S. Treasur,- Department and this data Is permitted to be used,
under the Bond Documents, for updating the housing purchase price limits.
The results of the new maximum price limits furnished by Dr. Janc.yk for the San
Bernardino- Riverside area are:
Safe Harbor Limitntions
Average Price
Maximum Having Purchase'
Price for Bond Programs
(110% of Average Price)
New Homes Existing Homes
$117,100 $107,900
$120,810 $118,690
Of these two updated figures the more important one to focus on Is the maximum
price for new homes since those sold In the Programs are newly constructed
ones. The updoted figure of $128,810 is an Increase of $7,150 over the previous
maximurn housing price limitation (previous figure was $121,660). ,,,
REDEVELOPMENT AGENCY STAFF REPORT
Amendments to Rules and Rcgulatlons of 1983, 1984 and 1985 Residential Mortgage Bond
Programs
October 16, 1985
Page ?
RECOMMENDATION, It .$ recommended that the attached Resolution pertaining
to—t W u es a egulations of the 1983, 1984 and 1985 Single Family Resleentlal
Mortgage Revenue Bond Program bn adopted to reflect the updated Information
furnished to us by Dr. Jonczyk, the City's feoslbility consultant.
Re;peafgL�
Jack Lam, AICP
Deputy Executive Director
JL:LDD:jk
Attachment: Resolution
Letter
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RESOLUTION NO. RA � —//
A RESOLUTION OF THE REDEVELOPMENT _
AGENCY OF THC CITY OF RANCHO
;:UCAMONGA AMENDING THE RULES AND
REGULATIONS RELATING TO THE 1983, 1984
AND 1985 SERIES A RESIDENTIAL MORTGAGE
REVENUE BOND PROGRAMS
RESOLVED, by the Redevelopment Agency of the City of
Rancho Cucamonga, California, as follan:
WHEREAS, The Fedevelopment Agency of the City of Rancho
Cucvnonga approved Rules. and Regulations pertaining to the Residential
Mortgage Financing Program on March 14, 1903; and
identifyin3 t Amax m5um the acquisition ncostsgIn Section 61of E'hiblt "A "nof
the Rules and Regulations based on the economic study prepared for the
Home Mortgige Revenue Bond Program; end
authority to
WHEREAS, wording to adjust, was contained to in time, the tmaximum gave
limits for new and existing homes in accordance with avthorizot•on
contained in the Tax Act and Indenture; and
WHEREAS, information received from the Agancy's feasibility
consultant updates the'wusing purchase price limits; aril
WHEREAS, the Agency determines it Is necessary to amend
the previously adopted Rules and Regulations in accordance with the
findings of said study.
NOW, THEREFCRE, BE IT RESOLVED, that Section 6 of the
Rules and Regulations cortoined In Exhibit "A" of Part 3 of the
Authorization and Issuance D,xvments be amendeG as follows:
Section 6. Maximum Ac ui :Ilion Costs. For purposes of the
Program, fhe genet' laas term ned that fhe Ixinum Acquisition Costs
for new homes is $128,810 and for existing homes is $118,690. The Agency
reserves the Jght to adjust the Maximum Acquisition Costs, from time to
time, in accordance with the authorization contained In the Act.
The Mayor shall sign this Ordinance and the City Clerk shail cause the
some to be published within fifteen (15) days after Its passage at least once
in The.Ocily Reeort a newspaper of general alrculatlon published In the
City of ntar o, California, and circulated In the City of Rancho
Cucamonga, California
PASSED, APPROVED, Ind ADOPTED this • day of •, l y,
AYES:
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NOES:
ABSENT:
—Ton a s, haImnan
ATTEST;
overly A. uthe et, City Clerk
I, BEVERLY A. AUTHELET, CITY CLERK of the City of
Rancho Cucamonga, California, do hereby certify that the foregoing
Resolution was finally passed at a regular meeting if the City Council of
the City of Rancho Cucamonga held on the - day of o, 19 *•.
California. Executed this • ca-,, of •, 1985 at Rancho Cucamonga,
every A. ut u1ei, City Clerk
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(714) 793.8215
35505 e. 4.l.nnq 5".Zoa�
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(714) 661 -7012
September 19, 1985
Ms Linda Daniels
Community Development Department
City of Rancho Cucamonga
P.0 Box 807
9320 Baseline Rd.
Rancho Cucamonga, CA 91730
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Re: Maximum Price Limits for the Mortgage Revenue- B6hd.-Pr'ogrn=
Dear Linda,
Ins Average Purchase Price Safe Narbcr, Llmi tati_ons= for- lf6rtgag3"
Suosidy Bonds were revised in August' 1x85 Pro'r^ thee Sean
Bernardino - Riverside PMSA, the effective average- 'an9-r?axlmo+m
price limits are as follows:
Now' 5xintur-
Price Average: $117,100 $:107,9Db-
Price Maximum $128,810 $118`,690:
(110 %)
Consequently, these price limits' are now.appl-icaD'L'e, t'S Raht:h.'ao
Cucamonga's Mortgage Revenue Bond Prograw.
If you have any additional comments or-quest'ioha; plebsar cohtt&.t
me.
%n
Wo eph T _Janczyk, Ph.D.
onooilo Consultant
JTJ:re
R9
tCITY OF RANCHO CUCAMONGA
"REDEVELOPMENT AGENCY
6'TAF%
REPORT
DATE:
Octeber 16, 1985
TO:
Chairman cnd Members of the Redevelopment Agenc;
FROM
Jack Lam, AIC�, Deputy Executive Director
BY:
Linda D. Daniels, Senior Redevelopment Analyst
SUBJECT:
INDUCEMEtJT RESOLUTION FOR A PROPOSED 8 00,,000
_ c
BACKGROUND: On September 24, 1985 an application for a Certificate of Participation
TOSS -(i3 was received by A. H. Reiter Development Co. The financing cpplicatlon
request is in the arnx t or $8,000,000. The proceeds of the Certificate Issue are
intended to finance the construction of the first phase of tm approved master plan for
ccmmercial- industriol office space. The first phase will consist of two one -story
buildings and one three -story building, totaling 90,000 square feet. 'he first phase Is
located at the northeast corner of Haven and Trademark Avenues The master plan and
first prase site plan were approved by the Planning Commission a, their September II,
1985 meeting.
E "ALUATION: The financing application has been reviewed by staff and has been found
To comp ere. The project is located in the Project Area and Is one for which a
Certificate of Participation can be Issued.
Tne opplican has indicated an intent to close this Certificate Issue by the end of 1985.
In order to do this a tromfer of private activity bonJ allocation, in mt amount equal to
the regxst, must first be complete-. This trGi,fer may come from the State, a County
or any local agency in California.
A second element which must be oddr=ed before •`r Ime is sot. Is the credit
enhunC"ent that must be in place to act as security for Me u� v. ,.o'tl.er the Aq'! uy
ur the City have any responsibility in paying t4 debt service on the bont: Issue. This
financial responsibility rests solely vBth the t:eveloper. In order to i -aure that the
Certificates will be paid o credit enhancement which would act as o back -tip to the
primary aource of revenue for paying the debt service Is m-rde,; In this parilculat
project the primary revenue source is tenant lease or rent payments. According to
preliminmy calculations of costs and rents the first ,,nose would need to be
approximately 60% rented in order to pay the anticipated dr.at on the $8 million Issue.
REDEVELOPMENT AGENCY STAFF REPORT
Inducement Resolution for a Proposed $8,
for A. H. Reiter Development Co. 0000000 Certificate of Participation Program
October 16, 1985
Page 2
RECOMMENDATION: Staff recommends that the Agency adopt the attached
opplicetion request The applicant Is aware hthat nlessseheecoDn obta(ama transfer lofnbond
cllocatlon end a credit enhancement, the Issue cannot move forward.
espectf I submitted,
ac s Lam,
Deputy Executive Director
attachment: Inducement Resolution
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RESOLUTION N0. RA
A RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF RANCHO CUCAMONGA INDICATING
ITS INTENT TO PROVIE _
OBLIGATIONS AND THE INSTTALOLMENT SALE FINANCING +
OF A COMMERCIAL AND INDLI57RIAL PP,OJECT BY
A. H. REITER DEVELOPMENT CO.
" WHERE 4S, the Redevelopment Agency of the City of Rancho Cucamonga
(the Agency ") is wVscrized pursuant to the Community Redevelopment Law, being
Section 33000 and fallowing of the H'calth and Sofety Code of the State of California (the
"Act') (i) to purciwso property, both real and personal, and any interest therein for
purposes or redevelopment in a redevelopment project area; Oil to sell or of cle for
dispose of any property, both real and personal, and any Interest therein for pur hem se
redevelopment in a redevelopment protect area; and Oil) to make ,.:nd execute contracts of
and oth:r Instruments necessary or convenient to the exercise of its powers; and
essbstmcu in the financing of the Reiter
oeylsltim Development
d construction of ea 90,OOOsquopurc /oat
commercial and industrial office project which contains three buildings end is proposed
to be located an 7 acres at the Wlhemt corner of Trademark and H.nven Avenues (the
'Project'), all located in the Rr'Icho Redevelopment Project Area of stn Agency (the
'Project Area"); and
WHEREAS. said financing s proposed to be provided by means of the
Agency entering into an installment sale arrangement with respecs to the Project,
ii clvding the issuane- of certificates of ParticiPotim or by means of the Agency
otherwise issuing taoexe"Pt obligations (said certificates or obligations bei ng
m
collectively referred to de "Obligations");
employment
WHEREAS, the Agar in order to encourage economic development and
Developer, is wing to outhOl -ize the srsiance of the Ob gar fans innmiamocunt sufficient
to provide financing for the Project subject to the restrictions of tho Act and all
applicable California and federal laws m they pcesently twist, provided thnt the Project
receives all necessary local governmental approvals of the City of Rancho Cuce mmgq
NOW, THEREFORE1 BE IT RESOLVED, by the Redevelopment Agency, of
the City of Rancho Cueomaogo as follows:
Seeflan 1. Finds This Board hereby determines that the
undertaking o going a tf he project by the Agency will be a substantial factor in
the accrual of public benefits to be received from the Project, fhoutd the Project be
approved and constructed, and that the proposed financing is in accord with the purposes
and requirements of the Act.
Section L Issuance of Obli atians. Subject to the completion of the
proceedings �r matters re ohng thereto to the full sutisfactim of this Board, and
subject to the Project :eceivir all necessary focal
hereby agrees to provide finonebg TO the Devel governmental approvals, this Board
approved by the Agency for the Project the stnefn °thee person or entity
In this resolution in an amount not to exceed %,000,000, , issuance of Obligations m described
.iss
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Section 3. Nature of Obli ations. The Obligations to be issued shall t,
be special ob gags of the Agency payable so e y from Installment payments or ether
revenues to be received by the Agency pursuant to all agreements (including any
Installment sole agreement with the Developer) In connection with the financing of tts
Project, all in a form acceptable to the Agency, and shall not be a general obligation of
the Agency, the City of Rancho Cucamonga, the Stute of California, or any political
subdivision thereof.
Section 4. Official Actloru It Is Intended that this Resolution shall
constitute "somt oher slmlfar — o cTal aetTo"
ntoward the Issuance of Indebtedness within
the meaning of Section 103 of the Internal Revenue Code of 1954, as amended, end the
regulations thereunder.
Section Other A royals. Tne adoption rr .� s Resolution shall not
bind the Agency to nssue certificates of pmt apotion, bonds o, other abllgatlons until and
unless all other necessary actions and opr;ovols are taken or rec:.vea In accordance with
all applicable laws. The adoption of finis Resolution does not and snail not limit In any
meaner whatever the Agency's wa the City of Rancho Cucamonga's full discretion to
deny any further permit or a,yroval that may be necessary for ultimate completion of
the proposed Project. In this connection
(o) All contracts relating to the acquisition, construction,
,nstallotlon and equipping of the Project shall be solicited, negotiated, awarded and
exec led by Ins Developer, for its own account, subject to applicable federal, state and
la, J law
(b) The Agency and the City of Rancho Cucamonga shall
nave no pecuniary licbtlity to the Developer for any fees In connection with the Project.
(c) The Agency and the City of Rancho Cucamonga shall
recover any and all costs to the Agency or the City of Rancho Cucamonga, is opplicable,
which are Incurred in furtherance of or attributable to the Issuance of the Obligations. If
the Obligations are not issued, all such costs shall be paid by the Developer.
Section 6. E(fective Dote. This Resolution shall take effect
po
immediately un a, phon.
ADOPIED this 16th day of October, 1985.
ATTEST:
dietary o the ee v
Agency of the City of Rancho
Cucornanga, California
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Chairman at the a ev�firl a ep ent
Agency of the Cily of liancho
Cucamonga, California
CITY OF RANCHO CUCAMOr
REDEVELOPMENT AGENC'
STAFF REPORT
DATE: October 16, 1985
TO: Chairman and Members of the Redevelopment Agency
FROM: Jack Lam, AICP, Deputy Executive Director
BY: Linda 0. Daniels, Senior Redevelopment Analyst
SUBJECT: CONTRACT FOR THE PURCHASE OF AN AERIAL LADDER TRUCK
t V M T7707-RMTCFfi('
DISC it t
BACKGROUND. On March 21, 1985 the Redevelopment Agency executed an amendment
to the C peratior Agreement between the Agency, the City and the Foothill Fire
Protection District. As part of :his amended Agreement a prioritization was made as to
what areas the Agency would allocate funds. Those areas are:
I. construction of facilities
2. lease and /or purchase of fire protection equipment
3. operation and maintenance of fire protection facilities
Specifically, this amendment was prepared so that the Agency could participate with the
Fire Protection District in the purchase of an aerial ladder truck.
Once the Agreement was executed the District began investigating the various ways of
purchasing the needed aerial ladder truck. Recently the District contacted the Agency
Indicating that a supplier, Grummet Emergency Products, would be The best source for
the manufacture and purchase of the fire apparatus
EVALUATION: The District submitted a_ contract to Agency staff for the purchase of
t e Ire T erruck. Thi contracts which was proposed to be betweer, Grumman Emergmcy
Products and the Redevelopment Agency, was forwarded to John Brown of Best, Best find
Krieger, Agency counsel, for comment.
Attached to this staff report Is a copy of the correspondence containing Mr. Brown's
comments. Briefly, In his Interpretation of the sections of the Health and Safety Code
pertaining to Redevelopment, it does not appear to clearly authorize the Agency to
Purchase equipment outright. For this reason, Agency counsel recommends that the
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REDEVELOPMENT AGENCY STAFF REPORT
Contract for Purchase of Aerial Ladder Trvck (Foothill Fire Protection Dislricl)
October 16, 1985
Page 2
District purchase the fire truck and a separate contract be executed whereby the Agency
would reimburse thn District for the payments The contract would require that the
District be responsible 'or the maintenance of the e.,uipment as well as being liable for
any claim Involving the truck. In addition, should the District be no longer legally
authorized to provide fire services within the City then ownership of the truck would
revert back to the City. As Indicated In counsel's letter, this approach would be
consistent with the existing Cooperative Agreement and redevelopment law.
Mr. Alex Ahvmoda of the Foothill Fire District has been contacted regarding the
proposed financing method. In discussing the overall ccncept and the primary points of
the contract he saw no reason why this would not be acceptable to `he Fire District
Board. He anticipated that the board could review and execute the contract the week of
October 21st.
Preliminary casts for the truck would involve an Initial down payment of $150,000 and
annual payments of approximately $65,000 for five years. This financing commitment
will not Jeopardize the anticipated financing proposal for facility construction within the
Project Area.
RECOMMENDATION: The Agency approve the contract by authorizing the Chairman to
i execute it.
Res ctfully su milted,
ac Lam _
Deputy Executive Director
Attachments: Contract
Correspondence from Agency':ounscl
a
REIMBURSEMENT AGREEMENT FOR runCHASE
OF FIRE EOUIPMENT BETWEEN THE FOOTHILL FIRE
PROTECTION DISTRICT, THE REDEVELOPMENT AGENCY
OF THE CITY OF RANCHO CUCAMONGA
AND THE CITY OF RANCHO CUCAN.OI GA
1. PARTIES AND DATE.
1.1 This Agreement entered into in the City
of Rancho Cucamonga, County of San Bernardino, State cf
California, this _ ddy of _., 1985, between the
FOOTHILL FIRE PROTECTION DISTRICT, a public agency
( "DistrLCt "),and the REDEVELOPMENT AGENCY OF THE CITY OF
RANCHO CUCAMONGA, a public body ( "Agency ") and the CITY OF
RANCHO CUCAMONGA, a mu,icipal corporation ( "City ").
2. RECITALS.
2.1 Agency is presently undertaking a program
under the �,,ifornia Community Redevelopment Law (Health and
Safety Code Section 33000 at se .)• for the redevelopment,
replanning and redesign of certain noncontiguous and
blighted areas within the City with stagnant, improperly
utilized and unproductive lani known as the Rancho kedevel-
opment Project ( "Project ") and requiring in the interest of
the health, safety, end general welfare of people of the
City of Rancho Cucamonga pursuant to Ordinance No. 166
adopted by the City Council of the City of Rancho Cucamonga,
*All subsequent references, unless otherwise noted, are to
the California Health s Safety Ccde.
s
California, on December 23, 1981, which authorizes the _
redevelopment of an area within the territorial limits of - •
the City by the Agency.
2.2 District, Agency and City have previously
entered into an agreement on April 22, 1982 entitled "Avree-
ment For Cooperation Between The Foothill Fire Protection
District, The Redevelopment Agency of the City of Rancho
Cucamonga and The City of Rancho Cucamonga," and certain
amendments thereto (the "Agreement "), pursuant to Sections
33401 and 33445. The purpose of the Agreement is to allevi-
ate financial burden or detriment caused to District by the
Project and to assist in the financing of the acquisition of
fire protection facilities which A,ancy and City have found
to be of primary benefit to the Project and for which there •
is no other reasonable means of financing.
2.3 District, Agency and City pursuant to
Section 3.2 of the Agreement, as amended, wish to make pay-
ment to District in order to facilitate redevelopment within
City and to further provide for the coope-atlon of District
and Agency in carrying out redevelopment activities and
otherwise alleviate any financial burden or detriment caused
to District by the Project _hrough the purchase of f re
equipment by District.
2 4 Agency has found and determined that it
would be appropriate to alleviate any financial burden or
detriment caused to District by the Project by paying to
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District money to be used for the construction, reconstruc-
tion, acquisition, relocation, rehabilitation, operation and
maintenance of fire protection facilities which are of
primary benefit to the Project and by otherwise zesisting in
the financing of District's fire protection facilities which
may be required by Agency's Project.
NOW, THEREFORE, in consideration of the foregoing
and the mutual promises and covenants contained herein, the
parties hereto agree as follows:
3 1 District Purchase of Fire Equipment. Pursuant
to Section 1.2 of the Agreement, Agency shall provide suffi-
cient funds to District to enable District to purchase an
aerial ladder apparatus ( "Truck Company "). Agency's
Oobligatton .o make such payments are expressly conditioned
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on such payments being previously approved in writing by
Agency.
3.2 Fittinq, operation and Maintenance of Truck
Company. District shall undertake to fully equip the Truck
Coompany so as to insure its full operational capability
Thereafter District shall operate and maintain the Truck
Company in a manner consistent with the operation and main-
tenance of similar Truck Companies by fire fighting entities
within San Bernardino County.
3.3 Insurance and Indemnification
3.3.1 This Agreement is made on the express
condition that Agency and City are to be free from all
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liability or loss by reason of injury to any person or
_
property results -, from District's ownership, operation and -
,.dintenance of the Truck Company. District hereby agrees to
and shall indemn)fv Agency and City and save them harmless
from any and all liability, loss, cost, or obligations on
account of or arising out of, any such injury or losses
however occurring due to District's negligence, or the
negligence of its officers, agents or employees.
3.3.2 District agrees to and shall, at its
own cost and expense, secure from a good and responsible
company or companies doing insurance business in the State
of California which are either approved in writing by lessor
or rated 'AAA• or bitter In Best's Insurance Reports, and
shall maintain during the entire term of this lease, the
following insurance coverage for the Truck Company:
(a) Casprehenslve public liability and
property damage insurance in the minimum amount
of Five (5) Million Dollars (sLj-)0 000 ) for
loss from an accident result)19•in bodily injury to or death
of one (1) person. Five (5) Million Dollars
($5,000.000 ) for injuries or death sustained by more
than one (1) person in a single incident, and Five (5)
million Dollars (s 5.000,0 10 ) for loss from an
accident resulting in damage to or destruction of property.
Said policy shall specifically insure perfozmance by
District of its indemnity agreement get forth.
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(b) Workers' compensation insurance coverage
during any period during the term that District may hire -
employees to man the Truck Company. -
District agrees that Agency and City shall be
named as an additional insured on each of the aforementioned
policies of insurance.
3.3.3 Upon securing the foregoing coverages,
District shall provide Agency and City with two (2) executed
copies of each of the policies for Agency's and City's
review for adequacy, and with prr.o£ of payment of the
premium or premiums on any such policy. Not less than forty -
five (45) days before each expiration of any insurance
coverage, District shall provide Agency and City with
satisfactory evidence that such insurance has been renewed
and that the required premium or premiums therefor have been
paid.
3.3.4 District shall provide written proof to
Agency and City that each of the policies provided for in
this Article expressly provide that policies shall not be
cancelled or altered without -at least thirty (30) days prior
written notice to Agency and City by District's insurance
company.
3.3.5 Not more frequently than each two (2)
years, if, in the opinion of an insurance broker retained by
Agency and City, the amount of the insurance policies
provided for in this Agreement is not adequate, District
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shall increase the insurance coverage as recommended by _
Agency's and City's insurance broker.
3.3.6 Comply promptly with all laws, ordi-
nances, rules and regulations of the Federal Government,
State of California, County of San Bernardino, City of
Rancho Cucamonga, and any other duly constituted -
governmental body pertaining directly or indirectly to the=
operations and maintenance of the Truck Company.
3.4 Assignment.
3.4.1 District shall not assign this Agteew-
ment, or any interest therein, or suffer any other person -to
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own, occupy or use the Truck Company without City's and=
Agency's prior written consent. A consent to one assign=
ment, subletting, occupation, or use by another person shall
not be deemed to be a consent to any subsequent assignment,
subletting, occupation or use by another person Any such
assignment without City's and Agency's consent shall be void
and shall, at City's and Agency's option, terminate this
Agreement and thereafter District shall convey all right,
title and interest- to the Truck Co•npauy to City. This
Agreement shall not, nor shall any interest therein, be
assignable, as to the interest of District by operation of
law, vithnut tht written consent of City and Agency.
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3.5 Cancellation of Agreement.
3.5.1 it is understood and agree,. by the
�pazties - hereto that Agency and City shall and hereby do +
- reseT*e the right to cancel or terminate this Agreement at
:any -time it should be determ;.ned by the City Council of the
City that District is no longer legally authorized to
,provide fire protection services within the City of Rancho
- Cucamonga or in the event that during the term of this
;Agreement, ,District is prevented by statute, ordinance,
,adALinistxative rule or regulation, as any statute,
,ocds.nance, rule or ttiulation now exists or may hereafter
oprovide, from operating ih- Truck Company within the Citv.
(a) in the event such termination is effected
,
pursuant to this Section, DistrSet, or its assigns, shall
thereafter convey all right, title and interest in the Truck
- Company to City and shall surrender possession of the Truck
-.Company to City within thirty (30) days following written
-notification of such cancellation.
3.5.2 It is understood and agreed by the
ipartias hereto that in the event of cancellation or termina-
tiAan )of this ,Agreement at provided in this Section, they
;sball be under no further obligation or liability to each
-other -,by season of this Agreement.
Orm
/B
3.6 Attorney's Pees.
3.6.1 In the event that either party shall_ _
commence any legal action or proceeding, including an action
for declaratory relief, against the other by reason of the
alleged failure of the other to perform or keep any term,
covenant o condition of this Agreement, the party pre-
vailing in said action or proceeding shall be entitled to
recover, in addition to its court costs, expert witness fees
and a reasonable attorney's fee to be fixed by the court,
and such recovery shall include court costs and attorney's
fees on appeal, if any. As used herein, "the prevailing
party" means the part in whose favor final judgment is
rendered
CITY OF RANC11O C:'CAMONGA 0
DATED:
mayor Ton D. N ke- s
ATTEST:
Lauren M. WasaerG.in
City Clerk
REDEVELOPMENT AG :ZICY OF
TEE CITY Of
RANCHO CUCAMONGA
DATED:
ATTEST:
Lauren H. Wasserman
Secretary
-8-
19
Chairman Jon D. H ke 8
0
DATED:
ATTEST:
Secretary
JED0040
-9-
F7J
FOOTHILL FIRE PROTECTION
DISTRICT
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October 7, 1985 —
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T gUNIT -i tEvEGIORJENT'DEPT
:T 0 no 1985
P.M
Linda D Daniels,
AA P.M
1 @111213141516
Senior Redevelopment Analyst Q
Redevelopment Agency
City of Rancho Cucamonga
9320 Baseline Road, Suite C
Rancho Cucamonga, CA 91730
Re: Agreement For Purchase Of Fire Equipment
Between The Foothill Fire Protection Distrive
The Redevelopment Agency Of The City Of Rancho
Cucamonga And The City Of Rancho Cucamonpe
Dear Linda:
Thank you for giving us the opportunity to review
correspondence between the Foothill Fire Protection District
and Grumman Emergency Products, inc., requesting that a
contrnct be executed between Grumman an.i the Redevelopment
Agency of the City of Rancho Cucamon6a on behalf of the
Foothill Fire Protection District with raspect to the purchase
of certain fire equipment It is my underatandtng that this
would constitute an alternative approach to actual City purchase
of such equipment as cont.mplated last March. You will recall
at that time that we prepared for the Agency's review and
use an agreement for the purchase of fire equipment through
the Southern California Association of Government Pooled
Equipment program.
ai
LAW II /IC[, OI
BEST BEST 5 KRIEGER
Linda D. Daniels,
Senior Redevelopment Analyst
Cctober 7, 1985 '
Page Two
Before commenting on the legality of the current
proposal, it might be helpful to you if I summarized the
existing obligations of the Redevelopment ,Agency of the
City of Rancho Cucamonga to the Foothill Fire Protection
District. The principal focus of the original agreement
for cooperation between the Foothill Fire protection District
and the Redevelopment Agency of t %e City of Rancho Cucamonga
was to provide funds to the District pursuant to Health and
Safety Code Section 33401 The statutory basis for such
payments was a finding that fiscal burden or detriment
re3ulted to the District by reason of the Rancho Redevelopment
Project. A principal focus of the original cooperation
agreement was the construction of certain Facilities on behalf
Of the Foothill Fire Protection District which is also
porn•itted by California Health and Safety Code Section 33445.
More recently, an amendment to the cooperation agreement was
approved whereby the Ager —y or the District could more flexibly
address the current needs of the District, including the
finan:ing of the lease and /or purchase of fire protection
equipnent.
The Redevelopment Agency of the City of Rancho Cucamonga
clearly has the authority to make payments to the Foothill
Fire Protection District to be used by the District for the
purpose of leasing and /or purchasing fire protection equipment,
operating and mainL.aining fire protection equipment and in
fact, for all other lawful purposes of the Foothill Fire
Protection District. The Agency also has the authority under
Health and Safety Code Section 33445 to finance directly any
•
L&w OrrIC[3 or
BEST BEST 6 KRIEGER
• Linda D Daniels, _
Senior Redevelopment Analyst
October 7, 1985
Page Three
"buildings, facilities, structure3, or other improvements"
which are found to be of benefit to the Rancho Redevelopment
Project or the immediate neighborhood in which the Rancho
Redevelopment Project is located.
Health and Safety Code Section 33445 does not appear
to clearly authorize the purchase of equipment, although the
argument could be made that a ladder fire truck is a facility
this would, in our opinion, be particularly questionable use
of the authority granted the Agerey under Health and Safety
Code Section 33445. Moreover, that Section has been recently
amended to prohibit a Redevelopment Agency from paying for
the normal maintenance or operations of buildings, facilities,
structures, or other improvements which are. owned by the
community This latter amendment to Section 33445 evidences
a continuing legislative scrutiny of the use of tax increment
monies for non - traditional redevelopment purposes This
hostility is also evidenced by the enactment of Health and
Safety Code Section 3367C(b)(3) which now appears to make it
clear that tax increment monies can no longer be used for the
purpose of paying for employee orcontrectral sery .ces of any
local governmental agency unless such services are directly
related to the traditional redevelopment purposes set forte
in Health and Safety Code Section 33020 and 33021.
In light of these existing legal constraints, we would
like to recommend an alternative approach to the direct purchase
oc fire equipment by the Redevelopment Agency of the City of
Rancho Cucamonga on behalf of the Foothill fire Protection District.
;� 3
LAW o neCa or
BEST SLST 6 KPIEGER
�.J
Linda D. Daniels,
Senior Redevelopment Analyst
October 7, 1985
Page Four
This approach would evaentiatly involve a simple agreement
between the Foothill Fire Protection District and the
Redevelopment Agency of the City of Rancho Cucamonga and the
City of Rancho Cucamonga whereby the Agency agrees to reim-
burse the Foothill Fire Protection District for Durchases of
Fire Equipment which are otherwise consistent with the
Agreement for Cooperation between the Foothill Fire Protection
District, the Redevelopment Agency of the City of Rancho
Cucamonga and the City of Rancho Cucamonga In that regard,
we would Like to propose for your consideration a variation
on the agreement previously drafted in connection with the
proposed purchase of fire equipment by the City of Rancho a
Cucamonga through its participation in the Southern California
Association of Government Pooled Equipment program A proposed
draft of such an agreement is attached for your review
Yours
sincerely,
ohn E Brown of
Best, Best 6 Krieger
Counsel, Redevelopment
Agency, City of Rancho
Cucamonga
1EB,jwr
Attachment
�.v s
0
October 16, 1985
CITY OF RANCHO CUCAMONGA
REDEVELOrAYMT AGENCY MINUTES
1. r. t.i. TO ORDER
A meeting of the Redevelopment Agency of the City of Rancho Cucamonga met on
Wednesday, October 16, 1985, in the Lions Park Community Center, 9161 Base Lice
Road, Rancho Cucamonga. Tae meeting was called to order at 7:72 p.m. by Chair-
ms. Jon D. Mikels.
Pres•ct were Agency Members: Pamela J. Wright, Richard M. Dahl, Jeffrey RIDS,
an. Chairman Jon D. Mikels.
Also present wore: Executive Director. Lauren M. Wasserman; Deputy Director,
Jack Lam; Asaistoot Secretary. 3werly A. Authelet; and Legal Counsel, Joba
Broen.
Absent: Agency Member Charles J. Buquet II.
* * a * *
2. CONSEET CALENDAR
2A. Approval of Amendment to Rules and Rcgulatioos of 1983, 1984, 1985 Roeideo- (1)
tial Hoop Mortgage Revenue Bond Program. (0203 -06 RDA).
RESOLUTION 80. RA85 -11
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
RANCHO CUCANAHGA, CALIFORDIA, AMENDING THE RULES AND RECULA-
TIONS RELATING TO THE 1983, 1984 AND 1985 SWAIES •Ae RESI-
DENTIAL HOME REVENUE BOND PROGRAM
MOTION: Moved by girl, seconded by Dahl to approve the Consent Calondar. Mo-
tion carried 4 -0-! NBaquer absent).
3A.
Director.
* * * * * *
(2)
Staff raper[ by Jack Lam,
Chairman Mikels cpuned the meeting for public input. Addressing the Agency
was:
Beery Reicec seated that they had received a letter of credit from Wells
Fargo Bank and were •msious to procebd.
RESOLUTION 80. RA 05 -12
A RESOLUTION OF THE REDEVELOPMENT AGENCY 07 THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, INDICATING ITS INTENT TO PRO-
VIDE FOR THE ISSUANCE OF OBLIGATIONS AND THE INSTALLMENT
ME FINANCING OF A COMMERCIAL /IHWSTRIAL OFFICE PROJECT BY
A.H. REITER DEVELOPMENT COMPANY
There being no further public response, the meeting was closed to further pub-
lic Input.
MOIInR: Monett by Dahl, seconded by Ring to approve Resolution No. BA85 -12 and
waive full readin3. Motioo carried 4 -0-1 ( Buquet absent).
* * a * * *
October
October 16. 16, !�ISaey Mivutes
1915
Page 2
3B.
(020346 5A). " ' >tucr report by Jacl. Lem, Deputy Director.
Cbeiruio Mikels 4poned the meeting for punt -r Input. There being no response,
the aeatiug was closed to further p•.b)ic input.
NOTION: loved by Iiog, seconded by Weight to spptrove upon condition of spprw-
d by the 7: to District Board. Notion carried 4 -0 -1 (Buquet absent).
e a a e e s
4. AntrnanmamT
NOTION: Moved by Debt. seconded by King to adjourn. Notion carried 4-0-1
(Duquet absent). The meeting adjourned at 7:15 p.m.
8eepectlully submitted,
• Giis� ^� . r.Cm, n
• Lauren M. Aasserneo
Secretary
Approved: December 18, 1985
0
(3)