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Home My WebLink About1986/02/19 - Agenda Packet - RDAFICA li( ��. MY OF ' RANCHO CUCAMOINGA REDEVELOPMENT AGENCY Z AGENDA L977 Lions park Community Carter 9161 Base Line Road Rancho Cucamonga, California pebruery 19. 1986 - 7:00 o.m. A. Rz11 Call: Wright _, Buquet _, Mikels Dahl _, and Ring _. B. Approval of Minutes: November 20, 1985 Detaches 18, 1985 January 15, 1986 The follmLng Consent Calendar its" are empected to be routine aa1 etu- cootroearsial. They vill be acted upon by the RDA at out, ties without discussion. NO ITEMS SLBMITTED NO ITEMS SUBMITTED . C•M •I I :I 11 .I .a., :.��1. e' 1. dI .1� iel.'i ], I ,•. A• 1 15 DATE: TO% FROM: BY: SUBJECT: February 19, 1986 CITY OF RANCHO CUCAAIONGA STAFF REPORT Mayor and Members of the City Council and City Manager Jack Lam, AICP, Director of Community Development Olen Junes, Redevelopment Analyst �� G U � '—Z- 19-1 BACKGROUND: The City Council, at Its meeting on April 3, 1985, adopted Resolution F�85- Illch authorized the application to the State Mortgage Bond Allocation Committee for $150 million of Residential Subsidy Bond Allocation To help expedite the anticipated Mortgage Bond Program for 1986, a team of consultants will be used, consisting of Stone & Youngberg, Bond Underwriters; Jones, Hall, Hilt 6 White, Bond Counsel; Empire Economics, Feasibility Consultant; and Fleldman, Rolapp and Associates, f inoncial Consultant. These firms have served the City in the past In preparing previous housing mortgage bond issues. Our experience in past years has shown that the consul tont team, as a group, is efficient and are experts In the field of Mortgage Bonds. In addition, this group of consultants has worked well with City staff, the Redevelopment Agency and the participating developers and by utilizing this some group for the expected 1986 program, working continuity can be achieved. ANALYSIS: In order to begin formally working on the structure and sale of the 19e6 rogram, t is necessary to enter Into agreements with two of the four consultants at this time. The agreements attached to this staff report are for Empire Economics, the feasibility consultant and Fieldman, Rolopp and Associates, the financial consultant. Agreements for the other consultants will be brought to you for approval at a later data 3ecouse of the potential Impact of the tax reform act being considered by Congress, -tR3838, the exact structure of the bond Issue cannot be determined. If tax reform is enacted, effective January 1, 1986, the more restrictive guidelines will require a s,gnificant reduction in the size of the issue as compared to previous years. In order to proceed with the preparation for the issue, it is necessary to serform a feasibility study to determine If the market demand for new housing is suffiL.ent to absorb the housing units which will be financed by the bond proceeds under both the existing and proposed regulations. Dr. Joseph Janczyk Evans of Empire Economics has agreed to structure the feasibility study so that should the more stringent guidelines take effect It may be amended to reflect the smaller issue and the more restrictive tax reform requirements. As a part of this study, the consultant will also update the home purchase price and household income qualifications which will be used for the issue. This study is also an important report needed by rating agencies when the bonds are rated. CITY STAFF REPORT Feasibility Consul tent /Financial Consultant /1986 Home Mortgage Revenue Bond Program February 19, 1986 Page 2 Fleldmon, Rolapp and Associates, as financial advisor, will advise City and Staff, Including the underwriter and bond counsel, on the bond financing, timing, and terms of the bond structure. As In the past, the expertise of the consultant Is useful In assuring that the City is able to achieve the best possible arrangement in completing the bond Issue. Staff has reviewed both cant sets and determined them to provide the necess- , services. All compensation for the contracts Is derived from the proceeds of the bores Issue. RECOMMENDATION: It Is recommended that the City Council approve the agreement w th mplre conomres for the feasibility study and Fleldmon, Rolapp and Associates as financial consultant and authorize execution by the Mayor. Re pcctf s bmitled, n / Jock't_am Director of Community Development JL:OJ:kop attachments: Feasibility Consultant Agreement Financial Consultant Agreement I NV EMPIRE ECONOMICS Economic and Real Estate CO'Au ltants Joseph Janczyk Evans Ph D 53303 Camino Capistrano Suite 200 Capistrano Bench CA 9:624 -1806 (7141 681 -7012 February 6 1966 Mayor Jon Mlkels City of Rancho Cucamonga 9320 Baseline Road P 0 Box 807 Rancho Cucamonga, CA 91730 Re: Market Demand- Peaslblllty Study for the City of Rancho Cucamonga Mortgage Revenue Bond Progra• Dear Mayor Mlkels: We want to first congratulate you on purnuln. a mortgage revenue bond Program Our studies cf their economic Impacts reveal that they provide Purchasers with more favorable mortgage Interest rates than conventional financing sources and they -1120 gonorn to substantial employment opportunities for local res1dents as well This letter will serve as a proposal and upon execution an Agreement regarding the Market Demand- Feaslbllity Study for the 1086 City of Rancho Cucamonga Mortgage Revenue Bond Program Accordingly this Agreement will provide you with a description of the economic research that will be performed along with the financial considerations and time requirements for the study Background ymplrn Economic, specializes In performink Mortgage Revenue Bond Market Dmmnnd- Fensiblllty studies for cities and counties located throughout California During the past three years we have conducted over SO such 3tddles which have resulted in the lssunnce of more than SI 300 000,000 In mortgage bonds These market demand - feasibility studies have tnrluded a diversity of bond fund urea including new developments. exlattng Cc.sin and also damodel /reh mbllltctl ne eltlrs /countlea g projects by Far adiltloncl Information on the clues /countie, that we have conducted mortgale revenue bond market demand - feasibility studies please refer to Exhibit A For Information on the rating agencies, bond Insurers, undorwr.tera and bond counsels that we hnvc dealt with, refer to Exhibit 3 Description of Economic Research The market demand - feasibility study will be conducted directly by Joseph Janezyk Evans Ph D the President of Empire Economics and an Economics Professor at California State University He will be assisted by his etperlenced staff which includes several people with advanced degrees In various areas of specialization with respect to economics and real estate Empire Economles will utilize Its comprehensive data base to formulate a localized forecasting - simulation economic and housing model to estimate the market demand for the candidate projects as well as the fcasiblllty of the mortgage revenue bond program This housing modal reoresents the lntegrntion of the economic /financial concepts underlying real estate development. in general with the actual population economic and housing market trends and patterns in San Bernardino County and the West Market Region In particular Additionally the model can simulate varloas economic and financial conditions so that they feasibility of the program can be evaluated for the most probable as well as the alternative financial scenarios tnat may emerge In the future Thus the Market Demand- Feaslblllty Study systematically proceeds from the Cenaral demographic. economic and financial market conditions to the absorption schedules for the candidate projects In the City of Rancho Cucamonga Mortgage Revenue Bond Program For Addition, Information on the compone,ts of the Market Demand- Feasibi. y Study refer to Exhibit C Developer /Project Bond Fund Allocatlonc We understand the importance of providing you with asalstnnce in compiling the optimal portfolio of projects fur the bond program based upon your housing goals as well as the requirements of the rating a gone lea Accordingly. the mirkat domnnd- feasibility atuuy will provide you With information on the potential developer allocations: Original Requests Alternative Possibilities (Based upon various allo•atlon formulas) Recommended Maximums (Based upon market condltinnn) Consequently you will have the option of* deciding which allocation furmuln best suits your needs We also provide the project participants With Information on their income windows based upon the prices of their housing units as compared to the maximum purchaser Incomes Presentation The results of the Market. Demand - Feasibility Study are presented In a variety of forms such as the following: written L,Nprehenslve Merkat Demand Feasibility Study Summary and Conclusions (Official Statement) Dpdale Letters (Pertaining to the Closing) Verbal Oral Presentation Including - Pictures if Project Sites - Color SI!des of key Graphs Consequently the preoentatlon of the results will be customized for the vnrlous particlpunts In the bond Issue Performance Schedule and Financlo Considerations The Market Demand- Feaslblllty Study will be completed within three to four weeks of the written or oral approval of this contract: proems. reports will be provided upon request if so des!red. The fees for the Market Demand,Fnnalblllty Study lncludln0 the Snamary and Conclusions for the Official Statement are as follows Retainer 56,000 Final $4 000 Supplemental 52,500 (Proposed Tax Legislation) Total $12 500 The above fee Is for the Market Demand- Fenslblllty Study any supplemental consulting services such as travel to New York or San Francisco will be billed separately The above fees Include lour copies Of the final study additional copies will be billed separately Closing To Indicate your agreement Mlth the above terms and conditions sign to the designated space below and return a COPY of the contract to us We are certainly looking forward to assisting you with your mortgneo revenue bond program I�ic O J/osop Janczyk Evans Ph D �kconomlc Consultant JJE rm APPROVED: APPROVED: City of Rancho Cucamonga Date Empire Economics Date I EX11IBIT A EMPIRE ECONOMICS MORTGAGE REVENUE BOND MARKET /PEASIBILITY STUDY (Partial List) Empire Economics has recently conducted numerous !emirs 'eassoility studies for mortgage revenue bond !csnes in San Prnordinc Iss Angelr., Orange County, San Diego and Riverside counties C1tY /County San Bernardino County Rancho Cucamonga Ontario San Bnrnardino City Colton Rialto Lancaster Pomona Covina Azusa Montebello E1 Monte Downey Oc-anside Carlsbad Escondido Chula Vista Riverside County Corona Moreno Valley San Jacinto Cathedral City Indio Calexico TOTAL Aggregate Amount (1981 85) $175 500 000 $189 500 OOr S58 520 000 S28 850 000 $42 360 000 $26 000 000 $76 850 000 $02 750,000 529 500 000 S32 410,000 $a 000 000 S16 000 000 S4 000 000 $46 900 000 $40 000 000 513 000 000 SIG 000 000 $120,310 000 $102.750 000 $48 000.000 $10 300 000 $17.000,000 $11 000 000 57.800 000 $1.158 800,000 EXHIBIT B EMPIRE ECONOMICS SPECIALISTS IN MORTGAGE REVENUE BOND MARKET /PEASIBILITY STUDIES (Experience - Successful Track Record) Market /Peasibllity Studies for over SO Citler /Couutles Bond Issue Amounting to over $1.500.000,000 Underwriting Firms: Miller a Schroeder Financial Inc Stone a Younebere Shearson American Express Inc PaineWebber Bancroft O'Connor Chilton a Lovell Inc Smith Barney Harris Uph,%m a Company Bateman Eichler, Hill Richards Inc Experience with all Ma or Rating Agencies: Standard a Poor's Cnrporation Moody's Investor's Service Inc Fitch Investor's Service Inc Bond Insurers: AYBAC Idemnity Corporation Financial Guarnnty Insurance Company Bond Counsels _ Law Firag Haynes a Miller Orrick Herrington A Sutcliffe Jones Hnll 11111 a White Stradling Yocca Carlson a Routh Beat Beet a Krieger Nazarek. Harper. Hopkins McFarlin F Mackenzie Brown Sabo a Gondek ' Studies Utilized �j Me or Institution Bond Funds: Ntreuven Franklin Fund 7 EMPIRE ECONOMICS CHART C .1LTp:00[OOS 0[000LTI]0 Tai N1a6T /IT{lIIILIST ]SOOT ..,.,uaele..... ., .,r......... • ImcaucTIOY uuu••• a w.,•.,.....1.,.••1•.,•...•. u•.,e u m mclintaa Of TeX CITT /COORT OaSCIIITION 01 ells CIYOIOaa p[OjiCt w• n• ••• • ae¢ret Oaec(n DOla spouts • u� • Man9 Wostrva[ieo Iatlrtt • Iro1•ve sec Oanla D•r ••• T w,$Lao...t Status[ Cans[rvn. /Nerkr[ioa •u • evwt.a stack / PawaOt Mtu • (reduce Nit. tri<., i 1 •., 0 Tien Of Ma.Wil Mau • I•ttuna .. Lirtel 1..,a .0 •.0 n 1.. •• • •., •......•.. a..., •., a..,., a r.. • u.. •• • • u • • • •... u u n..,1. r u u m • •. u u w....... n auuu•u.0 °O•u• SWYONIC alSCNRIOa3 /fa1IN[ILl] OIOClLT90 FORECASTS uu..•.u.,•ou•su ru a•1 I{SIC ASSONRIOY! ..• ••• IOIOIM[YT {L pg1NLTEtl n• u• • Crorec Pates far to.ou.. Mau • �o��u •• • • • • • Mhw t. oof cao.eattia. of I'd Eaaeua M., Nate froO.,ls Fart .... Setr ilesuetr. cauucoa. fact.... i i 0urusl f Mount recutiu IvQa0119.4 WwLtlplllrs .ouor Helena So"., of D.taatra/altaaab a... • • 01.... rr•....• uu•...u.••••.•..e.•..• e• ua• uu., eau •a .,r..•••••••••°p•1w•uu•rwe.a.. r ww• w uw....a1ree1.•.,.1.11•a1..,., • ...•....•e•••nuo.,.1a•.1.1a•. Tu• uumuumo•s1u1n1.uu•umu.ouulu ............................ : uu1.•... .,..uuu • 9003120 OpuIO OS COALIpIEO fOtCMitli • fOl TBF C{YOtO1TL IROJ[1T • 8013IIO lCppGT {Yp Clpf0aC SeSL] • FOR TEE _u0IC," ..OJLC. • •dean[ OaecanoeGO, Mprom at ecd • C., cest[IOa avtbitl Trle0s • • Sun.I of the Iveio PaotauGlal f "Joel. • fens.,., far Mplap.aat, /apYlat!•. • • • to the N•rkat Mu0s . • -ad J..lv( Ed.., Coaunal• F,j..to to toe F."., Ma:em • r GsNrlaav of forecasts rlta [eatst • • • Rana[ Mnuu. Mivu 1 Iroduae T10.. Rn.&.a T...d. • r Indata Coe.... gear, for proj ... a with • • fteec•1t10e of Iv .,IV( 0....d be Igor • • OK.Wra an AReca d Fauf.( prbu to • Seas. Nark•[ Some" na ao'lsa • • Co.vlcm .... a. of Cerwr.olr frojed Irod't T".. • Aeaanle( to twlr R.,l Aveuat hryueal is • • xodilteatlaa of [v'{n( Oauvd for Iona • flue'! Nonpp faf.anb /L1rtOR Anul Iro(na Cri.,ru. p • • {djaatN "pt Paus of ua Gecnat• M.LW Fria. • Irolrvt rime -tL.O IuHr p • - Rael [nowt hpeots far for Q"I"tr Oven Oanpamp • • Selatiw to ur Cnwraal• Iro110u • • lvaw. Yiado' tar Caad{Oa., project • • - protwitl of ta• frolece t0 • Ir.,vq 4lulirytva L wuufriauaarep(r Set. • • Ruwr (lava•• Co•suatl 4releln NutrW !canon tar Parowsln • • • Co.weltJnnus lupDl.,.,.,l • • to .,air 3 - candidate prola0t dw • MtVll.ecat • OealU Ito ... Los Mbr Too As Ylpaorw Nuaslwl to Cwiil /l0t • • caontltlneus of fro eta la prior • Fart(ass Sevr0' bed *areas n•• O....won...wew.In.nnrn.ne••uu.1• a...HU.•••n•..In•.rw.l•R U•.........•••M•e. IT u n.1 .,u. • •:• ........................................................... • e.n• r• n .......................a 1,e rEa3nitzti of AS Idap raaaeaR ••1•....r...•.....••,,,,,,, • Mtiutad annual u8eroti0e let., for b Candldato hojaat ... r•e - Oeu.a For 8...... OT C'lltlad Nren�Eara or - Mpa0ta4 aapurr Seen. for the hvaldat• project •., u• • candidatr frolect's Mute[ Velta lv the Idea t,.(na ua m .,e • T1aa ato' IF far tar " ties Ira Hat to be ahe•aot n• .•• ( !Ow) It tan na1aW tide DKIec of 7 wars It ec[ ur n.1 Nlllllad. was tar 40"V"" Of Oro Ject'a wrtlalpaelae u• In bec pro[ru of 'ad Canada .... tell ) ur ......................................... I •. aa. e. u. u. •. e. u r • • • u • • •.a 1 w w u u.. aa.,.. .1 Field.man, Rolapp & Associates MUMCMAL FWANCM CONSULTMTS May 28, 1985 Honorable Mayor and City Council City of Rancho Cucamonga and Board of Dire tors City of Rancho Cucamonga Redevelopmen: Agency 9320 C Bassliie Road P.O. Box 807 Rancho Cucamonga, CA 91730 Re: Financial Consultant Services 1986 Hama Mortgagn Revenue Bond Financing Programs Gentlemen: - r 1 V E 5 CITY OF WNC'P.O CUCANOIIGA 'OVtAUNITY CEVEIOPMENT DEPT MAY 2 51 °85 ;,B P51 718t91A),II II21112 A4A 6 s This letter proposal is submitted in accordance with a request from Jack Lam, Director of Community Development. The proposal in concerned with furnishing financial consultant services to be performed in conjunction with the Mortgage Revenue Bond Financing Program ( "Program ") contemplated by both of your Agencies. We underetaud that our responsibilities to the City and the RDA will be as follows: "Consultation with tha underwriter, bond counsel and others as necessary, concerning bond financing, timing, terms, and their structure including the revlow and comment on: - Structure of the plan of financing - Developer agreements and commitment fee schedules - Mortgaging sale and servicing agreements - Draft of preliminary official statement - Feasibility study - Other financing documents necessary to establish terms of the bond issue." 2061 Business Center Drive. Bnite 203 . Irvine. California 92715 • (714) 732.2781 The services which we will provide are as rollows: 1. Scope of Work General Assist in providing financial consultant services in connection with any and all financing requirements as they pertain to the proposed Program, in this connection, we will make available to you the research, statistical and consultant staffs of the Pield:nan, Rolapp and Associates organization to such extent is trey may necessary and helpful. Specific Services 1) Review of Documnnts. �aview of the financial aspects of all documents pertaining to the Program. This includes review and comment on developer agreements, commitment fee schedLIOS, mortgaging sale and servicing agreements, and marketing feasibility studies. 2) Municipal Bond Market. Puriish the City with information concerning the then current municipal bond market conditions and make recommendations as to the technical details of the financing, including maturity schedules, funds, covenants, prier redcmption schedules, and other details which will, in our opinion, make the proposed financing most acceptable to the designated underwriter; and, therefore, marketable at the lowest possible interest rate. 3) Negotiated Sale. Assist the City and the RDA in negotiating the sale of the contemplated bonds to the designated underwriter. In this connection, we will review and comment and advise the City and the RDA on coupon rates, the bond discount, and the underwriter's gross profit in an effort to assure a satisfactory net offectiva interest rate. 6) Offl ^ial Statement. Assist the City and e RDA n the review of the Official Statement prepared by the underwriter. If a due diligence meetiny, is held, we will participate in such due diligence meeting and assist you in the examination of-pertinent financial data. 2 i""AL FU M DAL r ONMTANTS M 5) Consultation /Advice. Attend any meet' Is concerning the Program when deemed necessary, and, in addition, will be available for consultation and advice until such time as tho bonds issued to finance the Program have been sold. These meetings include, but are not limited to, work sessions and seminars and conferences with ether professional consultants associated with the Program, prospective developers, aid lenders. 6) Negotiations with State of California. Assist in pertinent negotiations with appropriate State of California agenciea. 7) Project Negotiations. Assist in negotiations with developers, lenders, and others concerned with the Program. B) Project Criteria. Assist in developing Program criteria in accordance with the City's housing element plan. 9) Critical Path. Assist in the development of the critical path of events. 10) Attendance at Bond Closing. We will compute closing figures including accrued interest and assist in coordinating the events of the closing. 2. Pees The fees for services rendered hereunder shall be pale by the City and •ho Redevelopment Agency pro rata based upon the Par value of bonds sold by each Agency and will be as follows. a. $2,500 at the time the Agen,:fos receive the one -half point application fee From the developer; plus b. $2,500 at the time the Ago-,cies receive the commitment fee from the developers; plus c. 1. If the ?ar value of the bond issue is between 530,000,000 - 640,000,000 $7,000 at the time the bonds sold to finance the Programs are delivered to the underwriter; or MUNK3PAL MANcm coNAATANTS l/ 2. If the par value of the bond issue is between $40,000,000- $50,000,000 - $11,000 at the time the bonds sold to finance the Programs are delivered to the underwriter; or ? If the bond Issue is !n excess of $50,000,000 - $15,000 at the time the bonds sold to finance the Programs are delivered to the underwriter. 3.Expenges We will pay our own out -of- pocket expenses; provided, however, that if travel outside of Southern California is necessary in the furtherance of the Program and such travel is authorized by the City and the RDA, the City and the RDA will reimburse us for all costs of such travel and expenses incident thereto, Including lodging and subsistence. 4. Terms The City and the RDA may terminate this Agreement by giving written notice thereof to Consultant, Provided that rho City and the RDA shall be obliged to pay us for all work performed and all direct costs incurred prior to receipt of notice of termination by us. It is expressly understood that this Agreement does not intend to and is not under any circumstances to be construed as requiring us to perform any servic3a which constitute the practice of law; we are employed in an expert financial advisory capacity only. If the foregoing proposal is satisfactory to you, Please take appropriate action to authorize its acceptance by signing and returning the duplicate copy hereof. WLP /Pao Respectfully submitted, PTELDNAN, 111 )p AND ASSOCIATES ;��'�� MA PAL MOUC At ConStATANTS /I.)- Executed on behalf or the City of Rancho Cucamonga and the City of Rancho Cucamonga Redevelopment Agency. CITY OF RANCHO CUCAMONGA By. CITY OF RANCHO CUCAMONGA REDEVELOPMENT AGENCY ATTEST: MAaCwAL FNA" CmL CONSULTANTS 43 Fieldman, Rolapp & Associates W NIOPw r eau;t -AL CaasaTUns EXHIBIT "A" SCHEDULE OF FEES EFFECTIVE JANUARY 1, 1485 Principals of the Firm SE5.00 per Hour Technical Assistants $45 00 Per Hour 6 2001 Business Center Drive, BniGi 203 . Irvine, California 92715 • (714) 702.2781 Al CITY OF RANCHO C REDEVELOP,IIENT SIAFF REPORT DATE: February 19, 1986 TO: Chairman and Members of the Redevelopment Agency FROM: Jack Lam, AICP, Deputy Executive Director BY: Olen Jones, Redevelopmm' Analyst SUBJECT: MEMORANDUM OP tttvr'�PRCrnrunnar ncr,,,con, BACK_ GROUND: U:wer the term:. of the Rancho Redevelopment Project Plan, as MI a portion of the tax Increment generated by new development within the project area is reserved by the Redevelol ment Agency for the benefit of fire protection services. The purpose of reservinS, a portion of the tax increment is to Insure that adequate levels of fire protection within the redevelopment project orea. Anticipated growth within the project area will necessitate the construction of additional (Ire service facilities and equipment purchases. Discussions between the District and the Agency staff have been held to determine the best method to meet these growth needs. Rcther than expend these funds on an "as needed" basis, both the District and Agency stcff feel It is Important to develop an overall capital improvements finance program to ensure that available resources are efficiently utilized in providing fire protection services. Because the District lacks the personnel necessary to structure the financial aspects of such a program, it has asked the Agency to assist them In this task. ANALYSIS: The attached Memorandum of Understanding (MOU) outlines the respective responsibilities of the District and Agerxy in preparing a Capital Improvements Finance Program. Under the terms of the MOU, the District will provide to the Agency a description of each anticipated fire service facility, including the [motion, size, purpose, equipment needs, personnel needs, and costs. In addition, the District will provide a description of the anticipated revenue from the Mello -Rom district, and the proposed timing of Construction for each facility. Based upon the Information provided by the District, the Agency will analyze the needs of the District and the projected tin Increment revenues to determine the most feasible financing alternatives, and the timing of their Implementation. The Fire District Board has reviewed and approved the MOU. /S REDEVELOPMENT AGENCY STAFF REPORT Memorandum of Understanding /FFD /RDA /Capital Improvements Finance Progrcm February 19, 1986 Page 2 RECOMMENDATION: The Agency approve the Memorandum of Understanding between the D strict and the Redevelopment Agency by authorizing the Chairman to execute the agreement. Resp{ctfully submitted, Deputy Executive Director JLtOJ:kop at•achmentt Memorandum of Understanding /W MEMORANDUM OF UNDERSTANDING 13ETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA AND THE FOOTHILL FIRE PROTECTION DISTRICT TO DEFINE THE RESPECTIVE ROLES OF EACH IN THE PREPARATION OF A FIRE PROTECTION CAPITAL IMPROVEMENTS FINANCE PROGRAM AND REMUNERATION TO THE AGENCY FOR THEIR PARTICIPATION AND ASSISTANCE IN PREPARING SAID PROGRAM This Memorandum of Understanding ( "MOU "), between the Redevelopment Agency of the City of Rancho Cucamonga ( "Agency ") anJ the Foothill Fire Protection District ( "District "), is entered into this _day of . 1986. Whereas, the District has requested assistance from the Agency in developing a financial analysis and program as port of a comprehensive Fire Protection Capital Improvements Program ("Program") for the City and the Rancho Redevelopment Project Area ('Project Area "). Whereas, pursuant to this request for assistance, this MOU has been prepared for the purpose of outlining the areas of responsibility of both the Agency and the District staff for the preparation of said Program as well establishing the remuneration to the Agency by the District for this assistance. 7 The following areas of responsibilities are hereby defined for both the District and the Agency. District Responsibilities The District shall be responsible for providing to the Agency the following material and information within eight weeks of execution of this MOU. t 1. An analysis and description of existing and proposed fire protection facilities which i are anticipated to be needed throughout the City and the Project Arco as growth occurs. This shall Inc!-de the following minimum Information: 1) identification of objectives or goals of fire protection within the City and the Project Area; 2) a mop showing the general locations and service area of each existing and proposed fire ' protection facility; 3) size and specific purposes of the proposed locations; 4) special equipment needs of each station; 5) operations needs of each station and any i other pertinent Information which will help to describe the Individual, as well as combined, capital Improvement needs of the District. 2. A description of projected costs which are specific to each proposed fire protection facility. This shalt include, but not be limited to, estimated land acquisition costs, equipment casts, off -site improvement needs and costs, architectural design and engineering costs, on -site and construction costs. In addition, a description of operation and manpower costs which ore specific to each proposed facility that will be paid for by the Mello-Roos assessments shat' be included. 3 /91 3. The phasing or timing of whon each proposed facility is needed. This description shall also show the relationship to the projected Mello-Roos assessment revenues and the mcopower and operation costs that will be provided through this revenue source. 4. Attendance at Agency meetings and assistance in presenting final Program to the Agency. Agency Resaonsibilities Within six (6) weeks of receiving the Information provided by the District, the Agency will prepare the following. I. Preparation of new financial matrix which identifies the projected tax increment revenues which are to be received by the Agency from the County of San Bernardino and deposited into the Agency Fire Protection Fund No. 25. 2. Provide assistance to the District in determining projected costs for each proposed fire protection facility as described in number 2 under District Responsibilities. 3. Prepare a financial analysis which identifies the relationship of tax increment revenues to the proposed phasing of facilities and their associated costs as Identified b; the District This analysis shall also include a description of all other financial commitments of the District that have been approved by the Agency to be paid from the Agency Fire Protection Fund No. 25. 3 19 .e 4. Perform an Investigation, description and analysis of the most feasible financing alternatives which are available at the time the Program is developed to finance the Program improvements which benefit the Project Arco. This Investigation shall include a review of available pool bond financing programs, a single Issue bond financing program and such other financing programs that are available and compcl.ale with the Program objectives. 5. Preparation of a cash flow analysis for each of the potential financing alternatives. The cash flow analysis shall include the relationship of the use of tax Increment revenues and Mello Roos assessment revenues, projected annual debt service requirements, revenue proceed schedules which correspond to the phasing of Improvements outlined In the Procrom, and the timing of implementing the financing alternatives in order to accommodate the Program photing. 6. Provide an oral and written report and presentation to both the District and the Redevelopment Agency Board of the proposed Program. 7. Prepare final recommendation of the Program to the Redevelopment Agency Board. 4 M Remuneration For the Agency's asslstonce to the District in preparing the Program, the District shall pay the Agency for time and charges based an the following hourly rater $11.58 Office Assistant $19.65 Redevelopment Analyst $24.47 Senior Redevelopment Analyst $44.96 Deputy Executive Director $50.48 Executive Director These hourly rates are subject to change should there be any Council /Administration approved increases which are a result of cost of living or evoluation adjustments. In addition to these hourly rates, the Agency shall receive remuneration from the District for any necessary duplication and graphic preparation costs and other incidental of rice expenses. All time and charges that are accrued in connection with the Agency's preparation of this Program shall be debited to the Agency Fire Protection Fund Account No. 25. auto on ike s, Orman Redevelopment Agency February 13, 1986 re's dent t ! Foothill Fire Pr tection District �1(