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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 I M a• 1 PedGV6I0Puent Agency Agppdp -2- Oc0bpr 16, 1985 • A. Im=ZdEC =Lax9N p0Y _ A PAOPOC Ep ?8.n00 OQf! - -6 !:L$IiKYCATb➢LPABT,[C PATIOF PSlKi$Aa vOR A� pgtitg DBPEI.OPAV,BT C04 —..PAw 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 3• IS1 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 Z 0 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: 3 1. 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 v i -0 0 �tltriUt2 �dQ1tQt7'tt(.DII V�nnnnuo l�lunl�. 300 &L 5w. 5L.4 &J, 502 §"ndw &Cfs. ,492373 (714) 793.8215 35505 e. 4.l.nnq 5".Zoa� &PiL. 9-4 &q..92624• (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 Ilk v ;}.'+ISPtiSJ a1�,m1ur1 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 • • 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 s 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 9 -2- 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 /0 s 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 • -2- 43 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 F11 1F 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 -3- �y 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. -4- �s (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 -S- /6 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 IJ 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. -6- L3 T J 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 Pr es rdle n tt 3- Lww orncn or o(t.. u ova.( BEST, BEy7 �6 KRIEGER yww I.`o:ni �o g •c .�� uo� oPwwoe a[nLn [oe [.v [..ow.wwuaa • (ao, . o •o. uio Iamnq u.RnN•tOU lw. .ynv nl \•P 110[. CALI /09NIA Ota O] K.uO • ..... _ • {,Iiw[l. (Oi [)l•a -)1f1 YWw[.u.w' OJ [CLCPPOHL al. O0a •1. I G!I1. 0i•(na• ii a 1 ) f0 •[([. I[I al[ • •Oiw [ I•�� �` • w [w [ t.�O ww[ •.. t(a W w.0/ COY. at. October 7, 1985 — .oto1...Y..• if�:..`w.: • :� w .. u......n .K K[. u... c I L•n u,w [ Lau.na � .•iii• ••yi � R; 0. wOiu•o`� ItO.Oa,• , I.w •+4 •[. lYww t.OU. . 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)