HomeMy WebLinkAbout2015-28 - Authorizing the City to Join the Statewide Community Infrastructure Program; Authorizing the California Statewide Communities Development Authority to Accept Applications from Property Owners, Conduct Special Assessment Proceedings and Levy AsseRESOLUTION NO. 2015 -28
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH, CALIFORNIA, AUTHORIZING THE CITY TO JOIN THE
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM;
AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM
PROPERTY OWNERS, CONDUCT SPECIAL ASSESSMENT
PROCEEDINGS AND LEVY ASSESSMENTS WITHIN THE TERRITORY
OF THE CITY OF NEWPORT BEACH; APPROVING FORM OF
ACQUISITION AGREEMENT FOR USE WHEN APPLICABLE; AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
"Authority ") is a joint exercise of powers authority the members of which include
numerous cities and counties in the State of California, including the City of Newport
Beach (the "City "); and
WHEREAS, the Authority has established the Statewide Community
Infrastructure Program ( "SCIP ") to allow the financing of certain development impact
fees (the "Fees ") levied in accordance with the Mitigation Fee Act (California
Government Code Sections 66000 and following) and other authority providing for the
levy of fees on new development to pay for public capital improvements (collectively,
the "Fee Act ") through the levy of special assessments pursuant to the Municipal
Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following)
(the 1913 Act ") and the issuance of improvement bonds (the "Local Obligations ") under
the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and
following) (the 1915 Act ") upon the security of the unpaid special assessments; and
WHEREAS, SCIP will also allow the financing of certain public capital
improvements to be constructed by or on behalf of property owners for acquisition by
the City or another public agency and improvements to be constructed by the City
pursuant to plans and specifications to be prepared under the direction of the City in
accordance with the City's regular public works contracting process (the
"Improvements "); and
WHEREAS, the City desires to allow the owners of property being developed
within its jurisdiction ( "Participating Developers") to participate in SCIP and to allow the
Authority to conduct assessment proceedings under the 1913 Act and to issue Local
Obligations under the 1915 Act to finance Fees levied on such properties and
Improvements, provided that such Participating Developers voluntarily agree to
participate and consent to the levy of such assessments; and
WHEREAS, in each year in which eligible property owners within the jurisdiction
of the City elect to be Participating Developers, the Authority will conduct assessment
proceedings under the 1913 Act and issue Local Obligations under the 1915 Act to
finance Fees payable by such property owners and Improvements and, at the
conclusion of such proceedings, will levy special assessments on such property within
the territory of the City;
WHEREAS, there has been presented to this meeting a proposed form of
Resolution of Intention to be adopted by the Authority in connection with such
assessment proceedings (the "ROI "), a copy of which is attached hereto as Exhibit A,
and the territory within which assessments may be levied for SCIP (provided that each
Participating Developer consents to such assessment) shall be coterminous with the
City's official boundaries of record at the time of adoption of each such ROI (the
"Proposed Boundaries "), and reference is hereby made to such boundaries for the plat
or map required to be included in this Resolution pursuant to Section 10104 of the
Streets and Highways Code; and
WHEREAS, there has also been presented to this meeting a proposed form of
Acquisition Agreement (the "Acquisition Agreement "), a copy of which is attached hereto
as Exhibit B, to be approved as to form for use with respect to any Improvements to be
constructed and installed by a Participating Developer and for which the Participating
Developer requests acquisition financing as part of its SCIP application; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in
the case of delinquencies in such assessment payments; or the issuance, sale or
administration of the Local Obligations or any other bonds issued in connection with
SCIP; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published
at least five days prior to the adoption of this resolution at a public hearing, which was
duly conducted by this Council concerning the significant public benefits of SCIP and
the financing of the Improvements and the public capital improvements to be paid for
with the proceeds of the Fees;
NOW THEREFORE, the City Council of the City of Newport Beach hereby
resolves as follows:
Section 1. The City hereby consents to the conduct of special assessment
proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the
issuance of Local Obligations under the 1915 Act on any property within the Proposed
Boundaries; provided, that
(1) Such proceedings are conducted pursuant to one or more Resolutions of
Intention in substantially the form of the RO1; and
(2) The Participating Developers, who shall be the legal owners of such property,
execute a written consent to the levy of assessment in connection with SCIP by the
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Authority and execute an assessment ballot in favor of such assessment in compliance
with the requirements of Section 4 of Article XIIID of the State Constitution.
Section 2. The City hereby finds and declares that the issuance of bonds by the
Authority in connection with SCIP will provide significant public benefits, including
without limitation, savings in effective interest rate, bond preparation, bond underwriting
and bond issuance costs and the more efficient delivery of local agency services to
residential and commercial development within the City.
Section 3. The Authority has prepared and will update from time to time the
"SCIP Manual of Procedures" (the "Manual'), and the City will handle Fee revenues and
funds for Improvements for properties participating in SCIP in accordance with the
procedures set forth in the Manual.
Section 4. The form of Acquisition Agreement presented to this meeting is
hereby approved, and the [Mayor] is authorized to execute and the City Clerk is
authorized to attest the execution of a completed Acquisition Agreement in substantially
said form and pertaining to the Improvements to be acquired by the City being financed
on behalf of the applicable Participating Developer.
Section 5. The appropriate officials and staff of the City are hereby authorized
and directed to make SCIP applications available to all property owners who are subject
to Fees for new development within the City and /or who are conditioned to install
Improvements and to inform such owners of their option to participate in SCIP;
provided, that the Authority shall be responsible for providing such applications and
related materials at its own expense. The staff persons listed on the attached Exhibit C,
together with any other staff persons chosen by the City Manager from time to time, are
hereby designated as the contact persons for the Authority in connection with the SCIP
program.
Section 6. The appropriate officials and staff of the City are hereby authorized
and directed to execute and deliver such closing certificates, requisitions, agreements
and related documents, including but not limited to such documents as may be required
by Bond Counsel in connection with the participation in SCIP of any districts, authorities
or other third -party entities entitled to own Improvements and /or to levy and collect fees
on new development to pay for public capital improvements within the jurisdiction of the
City, as are reasonably required by the Authority in accordance with the Manual to
implement SCIP for Participating Developers and to evidence compliance with the
requirements of federal and state law in connection with the issuance by the Authority of
the Local Obligations and any other bonds for SCIP. To that end, and pursuant to
Treasury Regulations Section 1.150 -2, the staff persons listed on Exhibit C, or other
staff person acting in the same capacity for the City with respect to SCIP, are hereby
authorized and designated to declare the official intent of the City with respect to the
public capital improvements to be paid or reimbursed through participation in SCIP.
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Section 7. This Resolution shall take effect immediately upon its adoption. The
City Clerk is hereby authorized and directed to transmit a certified copy of this resolution
to the Secretary of the Authority.
ADOPTED this 28th day of April, 2015.
ATTEST:
t_eilani I. Brown
City Clerk
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Edward D. Selich
Mayor
EXHIBIT A TO THE RESOLUTION
FORM OF RESOLUTION OF INTENTION
TO BE ADOPTED BY CSCDA
RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE
IMPROVEMENTS AND /OR THE PAYMENT OF DEVELOPMENT IMPACT
FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED
ASSESSMENT DISTRICT NO. (COUNTY OF ,
CALIFORNIA), APPROVING A PROPOSED BOUNDARY MAP, MAKING
CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS
CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED
ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the "1913
Act "), being Division 12 (commencing with Sections 10000 and following) of the California
Streets and Highways Code, the Commission (the "Commission ") of the California Statewide
Communities Development Authority (the "Authority ") intends to finance, through its Statewide
Community Infrastructure Program, the payment of certain development impact fees for public
capital improvements as described in Exhibit A attached hereto and by this reference
incorporated herein (the `Fees ") and to finance certain public capital improvements to be
constructed by or on behalf of the property owner(s) and to be acquired by the City or another
local agency or constructed by the City pursuant to plans and specifications to be prepared under
the direction of the City in accordance with the City's regular public works contracting process
(the "hnprovements "), all of which are of benefit to the property within the proposed Assessment
District No. (County of California) (the "Assessment District "); and
WHEREAS, the Commission finds that the land specially benefited by the Fees and the
Improvements is shown within the boundaries of the map entitled `Proposed Boundaries of
Assessment District No. (County of California)," a copy of which map is
on file with the Secretary and presented to this Commission meeting, and determines that the
land within the exterior boundaries shown on the map shall be designated "Assessment District
No. (County of California)';
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California
Statewide Communities Development Authority hereby finds, determines and resolves as
follows:
1. The above recitals are true and correct, and the Commission so finds and
determines.
2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and
Majority Protest Act of 1931 (the "1931 Act "), being Division 4 (commencing with Section
2800) of the California Streets and Highways Code, the Commission hereby declares its intent to
comply with the requirements of the 1931 Act by complying with Part 7.5 thereof,
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3. The Commission has or will designate a registered, professional engineer as
Engineer of Work for this project, and hereby directs said firm to prepare the report containing
the matters required by Sections 2961(b) and 10204 of the Streets and Highways Code, as
supplemented by Section 4 of Article XIIID of the California Constitution.
4. The proposed boundary map of the Assessment District is hereby approved and
adopted. Pursuant to Section 3111 of the California Streets and Highways Code, the Secretary of
the Authority is directed to file a copy of the map in the office of the County Recorder of the
County of within fifteen (15) days of the adoption of this resolution.
5. The Commission determines that the cost of the Fees and Improvements shall be
specially assessed against the lots, pieces or parcels of land within the Assessment District
benefiting from the payment of the Fees and the provision of the Improvements. The
Commission intends to levy a special assessment upon such lots, pieces or parcels in accordance
with the special benefit to be received by each such lot, piece or parcel of land, respectively,
from the payment of the Fees and the provision of the Improvements.
6. The Commission intends, pursuant to subparagraph (f) of Section 10204 of the
California Streets and Highways Code, to provide for an annual assessment upon each of the
parcels of land in the proposed assessment district to pay various costs and expenses incurred
from time to time by the Authority and not otherwise reimbursed to the Authority which result
from the administration and collection of assessment installments or from the administration or
registration of the improvement bonds and the various funds and accounts pertaining thereto.
7. Bonds representing unpaid assessments, and bearing interest at a rate not to
exceed twelve percent (12 %) per annum, will be issued in the manner provided by the
Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last
installment of the bonds shall mature not to exceed thirty (30) years from the second day of
September next succeeding twelve (12) months from their date.
8. The procedure for the collection of assessments and advance retirement of bonds
under the Improvement Bond Act of 1915 shall be as provided in Part 11.1, Division 10, of the
Streets and Highways Code of the State of California.
9. Neither the Authority nor any member agency thereof will obligate itself to
advance available funds from its or their own funds or otherwise to cure any deficiency which
may occur in the bond redemption fund. A determination not to obligate itself shall not prevent
the Authority or any such member agency from, in its sole discretion, so advancing funds.
10. The amount of any surplus remaining in the improvement fund after payment of
the Fees, acquisition of the Improvements and payment of all claims shall be distributed in
accordance with the provisions of Section 10427.1 of the Streets and Highways Code.
11. To the extent any Fees are paid to the Authority in cash with respect to property
within the proposed Assessment District prior to the date of issuance of the bonds, the amounts
so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer
that made the payment.
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EXHIBIT B TO THE RESOLUTION
FORM OF ACQUISITION AGREEMENT
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ACQUISITION AGREEMENT
BY AND BETWEEN
CITY OF NEWPORT BEACH
AND
[DEVELOPER]
Dated as of , 20
MIE
ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the "Agreement ") are the CITY OF
NEWPORT BEACH, (the "Local Agency "), and [DEVELOPER], a [here indicate type of legal
entity] (the "Developer ").
B. The effective date of this Agreement is , 20_
C. The Developer has applied for financing of certain public capital improvements
(the "Acquisition Improvements ") and capital facilities fees though the Statewide Community
Infrastructure Program ( "SCIP ") administered by the California Statewide Communities
Development Authority (the "Authority ") and such application has been approved by the Local
Agency.
D. Under SCIP, the Authority intends to issue bonds to fund, among other things, all
or a portion of the costs of the Acquisition Improvements, and the portion of the proceeds of
such bonds allocable to the cost of the Acquisition Improvements to be constructed and installed
by the Developer, together with interest earned thereon prior to such acquisition, is referred to
herein as the "Available Amount ".
E. SCIP will provide financing for the acquisition by the Local Agency of the
Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the
Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A are
descriptions of the Acquisition Improvements, which descriptions are subject to modification by
written amendment of this Agreement, subject to the approval of the Authority.
F. The parties anticipate that, upon completion of the Acquisition Improvements and
subject to the terms and conditions of this Agreement, the Local Agency will acquire such
completed Acquisition Improvements with the Available Amount.
G. Any and all monetary obligations of the Local Agency arising out of this
Agreement are the special and limited obligations of the Local Agency payable only from the
Available Amount, and no other funds whatsoever of the Local Agency shall be obligated
therefor.
H. In consideration of Recitals A through G, inclusive, and the mutual covenants,
undertakings and obligations set forth below, the Local Agency and the Developer agree as
stated below.
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Agreement
ARTICLE I
DEFINITIONS; ASSESSMENT DISTRICT FORMATION AND
FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall
have the meanings ascribed to them below:
"Acceptable Title" means free and clear of all monetary liens, encumbrances,
assessments, whether any such item is recorded or unrecorded, and taxes, except those items
which are reasonably determined by the Local Agency Engineer in his sole discretion not to
interfere with the intended use and therefore are not required to be cleared from the title.
"Acquisition Improvements" shall have the meaning assigned to such term in Recital C
and are described in Exhibit A.
"Acquisition Price" means the amount paid to the Developer upon acquisition of all of
the Acquisition Improvements as provided in Section 2.03.
"Actual Cost" means the cost of construction of all of the Acquisition Improvements, as
documented by the Developer to the satisfaction of the Local Agency, as certified by the Local
Agency Engineer in an Actual Cost Certificate.
"Actual Cost Certificate- shall mean a certificate prepared by the Developer detailing the
Actual Cost of all of the Acquisition Improvement to be acquired hereunder, as revised by the
Local Agency Engineer pursuant to Section 2.03.
"Agreement" means this Acquisition Agreement, dated as of , 20_
Assessment District" means the assessment district established by the Authority
pursuant to SCIP which includes the Developer's property for which the Acquisition
Improvements are being funded.
"Authority" means the California Statewide Communities Development Authority.
"Available Amount" means the amount of funds deposited in the Developer Acquisition
Account by the Authority pursuant to SCIP, together with any interest earnings thereon.
"Code" means the Streets and Highways Code of the State of California.
"Developer" means [Developer], a [here indicate type of legal entity].
"[Developer] Acquisition Account" means the account by that name established by the
Authority pursuant to SCIP for the purpose of paying the Acquisition Price of the Acquisition
Improvements.
"Local Agency" means the City of Newport Beach.
"Local Agency Engineer" means the Director of Public Works of the Local Agency (the
"Director ") or the designee of the Director, who will be responsible for administering the
acquisition of the Acquisition Improvements hereunder.
"Project" means the land development program of the Developer pertaining to the
Developer's property in the Assessment District, including the design and construction of the
Acquisition Improvements and the other public and private improvements to be constructed by
the Developer within or adjacent to the Assessment District.
"SCIP" means the Statewide Community Infrastructure Program of the Authority.
"SCIP Requisition" means a requisition for payment of funds from the [Developer]
Acquisition Account in substantially the form attached hereto as Exhibit B.
"SCIP Trust Agreement" means the Trust Agreement entered into by the Authority and
the SCIP Trustee in connection with the financing for the Acquisition Improvements.
"SCIP Trustee" means Wells Fargo Bank, National Association, as trustee under the
SCIP Trust Agreement.
"Title Documents" means, for each Acquisition Improvement acquired hereunder, a
grant deed or similar instrument necessary to transfer title to any real property or interests therein
(including easements) necessary or convenient to the operation, maintenance, rehabilitation and
improvement by the Local Agency of that Acquisition Improvement (including, if necessary,
easements for ingress and egress) and a Bill of Sale or similar instrument evidencing transfer of
title to that Acquisition Improvement (other than said real property interests) to the Local
Agency, where applicable.
Section 1.02. Participation in SCIP. Developer has applied for financing
thorough SCIP of the Acquisition Improvements, and such application has been approved by the
Local Agency. Developer and Local Agency agree that until and unless such financing is
completed by the Authority and the Available Amount is deposited in the Developer Acquisition
Account, neither the Developer nor the Local Agency shall have any obligations under this
agreement. Developer agrees to cooperate with the Local Agency and the Authority in the
completion of SCIP financing for the Acquisition Improvements.
Section 1.03. Deposit and Use of Available Amount.
(a) Upon completion of the SCIP financing, the Available Amount will be
deposited by the Authority in the [Developer] Acquisition Account.
(b) The Authority will cause the SCIP Trustee to establish and maintain the
[Developer] Acquisition Account for the purpose of holding all funds for the Acquisition
Improvements. All earnings on amounts in the [Developer] Acquisition Account shall remain in
the [Developer] Acquisition Account for use as provided herein and pursuant to SCIP. The
amounts in the [Developer] Acquisition Account shall be withdrawn by the Local Agency in
C,
accordance with SCIP procedures upon completion of the Acquisition Improvements within 30
days (or as soon thereafter as reasonably practicable) of receipt by the Local Agency of the
certification of the Local Agency Engineer required by Section 2.03 of this Agreement, and
subject to satisfaction of all other conditions precedent to such acquisition pursuant to Section
2.04 of this Agreement, to pay the Acquisition Price of such completed Acquisition
Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition
Improvements and the payment of all costs thereof, any remaining funds in the [Developer]
Acquisition Account (less any amount determined by the Local Agency as necessary to reserve
for claims against such account) (i) shall be applied to pay the costs of any additional
improvements eligible for acquisition with respect to the Project as approved by the Authority
and, to the extent not so used, (ii) shall be applied by the Authority as provided in Section
10427.1 of the Code to pay a portion of the assessments levied on the Project property in the
Assessment District.
Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect
on Other Agreements. In no event shall any actual or alleged act by the Local Agency or any
actual or alleged omission or failure to act by the Local Agency with respect to SCIP subject the
Local Agency to monetary liability therefor. Further, nothing in this Agreement shall be
construed as affecting the Developer's or the Local Agency's duty to perform their respective
obligations under any other agreements, public improvement standards, land use regulations or
subdivision requirements related to the Project, which obligations are and shall remain
independent of the Developer's and the Local Agency's rights and obligations under this
Agreement.
ARTICLE II
DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS
Section 2.01. Letting and Administering Design Contracts. The parties presently
anticipate that the Developer has awarded and administered or will award and administer
engineering design contracts for the Acquisition Improvements to be acquired from Developer.
All eligible expenditures of the Developer for design engineering and related costs in connection
with the Acquisition Improvements (whether as an advance to the Local Agency or directly to
the design consultant) shall be reimbursed at the time of acquisition of such Acquisition
Improvements,. The Developer shall be entitled to reimbursement for any design costs of the
Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and
shall not be entitled to any payment for design costs independent of or prior to the acquisition of
Acquisition Improvements.
Section 2.02. Letting and Administration of Construction Contracts. State law
requires that all Acquisition Improvements shall be constructed as if they were constructed under
the direction and supervision of the Local Agency. In order to assure compliance with those
provisions, except for any contracts entered into prior to the date hereof, Developer agrees to
comply with the guidelines of the Local Agency for letting and administering said contracts. The
Developer agrees that all such contracts shall call for payment of prevailing wages as required by
the Labor Code of the State of California.
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Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to
the Local Agency the Acquisition Improvements to be constructed by Developer (including any
rights -of -way or other easements necessary for the operation and maintenance of the Acquisition
Improvements, to the extent not already publicly owned) when such Acquisition Improvements
are completed to the satisfaction of the Local Agency for an amount not to exceed the lesser of
(i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvements. Exhibit A,
attached hereto and incorporated herein, contains a list of each Acquisition Improvement. At the
time of completion of each Acquisition Improvement, the Developer shall deliver to the Local
Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate
and executed Title Documents for the transfer of the Acquisition Improvement, where necessary.
In the event that the Local Agency Engineer finds that the supporting paperwork submitted by
the Developer fails to demonstrate the required relationship between the subject Actual Cost and
the related Acquisition Improvement, the Local Agency Engineer shall advise the Developer that
the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and
shall request further documentation from the Developer. If such further documentation is still
not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any
disallowed items, and such determination shall be final and conclusive.
In the event that the Actual Cost is in excess of the Available Amount, the Local Agency
shall withdraw the Available Amount from the [Developer] Acquisition Account and transfer
said amount to the Developer. In the event that the Actual Cost is less than the Available
Amount, the Local Agency shall withdraw an amount from the [Developer] Acquisition Account
equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then
remaining in the [Developer] Acquisition Account shall be applied as provided in Section 1.03.
In no event shall the Local Agency be required to pay the Developer more than the
amount on deposit in the [Developer] Acquisition Account at the time such payment is
requested.
Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment
by the Local Agency to the Developer from the [Developer] Acquisition Account of the
Acquisition Price for an Acquisition Improvement shall be conditioned first upon the
determination of the Local Agency Engineer, pursuant to Section 2.03, that such Acquisition
Improvement is all complete and ready for acceptance by the Local Agency, and shall be further
conditioned upon prior satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien releases or
other similar documentation satisfactory to the Local Agency as evidence that the property which
is subject to the special assessment liens of the Assessment District is not subject to any
prospective mechanics lien claim respecting the Acquisition Improvements.
(b) The Developer shall be current in the payment of all due and payable property
taxes and installments for the special assessments of the Assessment District on property owned
by the Developer or under option to the Developer.
(c) The Developer shall certify that it is not in default with respect to any loan
secured by any interest in the Project.
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(d) The Developer shall have provided the Local Agency with Title Documents
needed to provide the Local Agency with title to the site, right -of -way, or easement upon which
the subject Acquisition Improvements are situated. All such Title Documents shall be in a form
acceptable to the Local Agency (or applicable governmental agency) and shall convey
Acceptable Title. The Developer shall provide a policy of title insurance as of the date of
transfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the
interests acquired in connection with the acquisition of any interest for which such a policy of
title insurance is not required by another agreement between the Local Agency and the
Developer. Each title insurance policy required hereunder shall be in the amount equal to or
greater than the Acquisition Price.
Section 2.05. SCIP Requisition. Upon a determination by the Local Agency
Engineer to pay the Acquisition Price of the Acquisition Improvements pursuant to Section 2.04,
the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the SCIP Trustee
and the SCIP Trustee shall make payment directly to the Developer of such amount pursuant to
the SCIP Trust Agreement. The Local Agency and the Developer acknowledge and agree that
the SCIP Trustee shall make payment strictly in accordance with the SCIP Requisition and shall
not be required to determine whether or not the Acquisition Improvements have been completed
or what the Actual Costs may be with respect to such Acquisition Improvements. The SCIP
Trustee shall be entitled to rely on the SCIP Requisition on its face without any further duty of
investigation.
ARTICLE III
MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless. The Developer hereby
assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority,
and each of its respective officers, directors, employees and agents, from and against all actions,
damages, claims, losses or expenses of every type and description to which they may be
subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or
omissions of the Developer or its agents and employees in the performance of this Agreement, or
arising out of any contract for the design, engineering and construction of the Acquisition
Improvements or arising out of any alleged misstatements of fact or alleged omission of a
material fact made by the Developer, its officers, directors, employees or agents to the
Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or
regarding the Developer, its proposed developments, its property ownership and its contractual
arrangements contained in the official statement relating to the SCIP financing (provided that the
Developer shall have been furnished a copy of such official statement and shall not have
objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any
manner the Local Agency's rights against any of the Developer's architects, engineers,
contractors or other consultants. Except as set forth in this Section 3.01, no provision of this
Agreement shall in any way limit the extent of the responsibility of the Developer for payment of
damages resulting from the operations of the Developer, its agents and employees. Nothing in
this Section 3.01 shall be understood or construed to mean that the Developer agrees to
indemnify the Local Agency, the Authority or any of its respective officers, directors, employees
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or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority
its officers, employees, agents or any consultants or contractors.
Section 3.02. Audit. The Local Agency shall have the right, during normal
business hours and upon the giving of ten days' written notice to the Developer, to review all
books and records of the Developer pertaining to costs and expenses incurred by the Developer
(for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.
Section 3.03. Cooperation. The Local Agency and the Developer agree to
cooperate with respect to the completion of the SCIP financing for the Acquisition
Improvements. The Local Agency and the Developer agree to meet in good faith to resolve any
differences on future matters which are not specifically covered by this Agreement.
Section 3.04. General Standard of Reasonableness. Any provision of this
Agreement which requires the consent, approval or acceptance of either party hereto or any of
their respective employees, officers or agents shall be deemed to require that such consent,
approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly
incorporates a different standard. The foregoing provision shall not apply to provisions in the
Agreement which provide for decisions to be in the sole discretion of the party making the
decision.
Section 3.05. Third Party Beneficiaries. The Authority and its officers,
employees, agents or any consultants or contractors are expressly deemed third party
beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly
agreed that, except for the Authority with respect to the provisions of Section 3.01, there are no
third party beneficiaries of this Agreement, including without limitation any owners of bonds,
any of the Local Agency's or the Developer's contractors for the Acquisition Improvements and
any of the Local Agency's, the Authority's or the Developer's agents and employees.
Section 3.06. Conflict with Other Agreements. Nothing contained herein shall
be construed as releasing the Developer or the Local Agency from any condition of development
or requirement imposed by any other agreement between the Local Agency and the Developer,
and, in the event of a conflicting provision, such other agreement shall prevail unless such
conflicting provision is specifically waived or modified in writing by the Local Agency and the
Developer.
Section 3.07. Notices. All invoices for payment, reports, other communication
and notices relating to this Agreement shall be mailed to:
H. H.
If to the Local A ency:
[Director, Economic Development Department]
City of Newport Beach
[Address to Come]
If to the Developer:
[Developer]
[Address to Come]
Either party may change its address by giving notice in writing to the other party.
Section 3.08. Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be
given effect to the fullest extent reasonably possible.
Section 3.09. Governing Law. This Agreement and any dispute arising
hereunder shall be governed by and interpreted in accordance with the laws of the State of
California.
Section 3.10. Waiver. Failure by a party to insist upon the strict performance of
any of the provisions of this Agreement by the other party, or the failure by a party to exercise its
rights upon the default of the other party, shall not Constitute a waiver of such party's right to
insist and demand strict compliance by the other party with the terms of this Agreement.
Section 3.11. Singular and Plural; Gender. As used herein, the singular of any
word includes the plural, and terms in the masculine gender shall include the feminine.
Section 3.12. Counterpart s. This Agreement may be executed in counterparts,
each of which shall be deemed an original.
Section 3.13. Successors and Assigns. This Agreement is binding upon the
heirs, assigns and successors -in- interest of the parties hereto. The Developer may not assign its
rights or obligations hereunder, except to successors -in- interest to the property within the
District, without the prior written consent of the Local Agency.
Section 3.14. Remedies in General. It is acknowledged by the parties that the
Local Agency would not have entered into this Agreement if it were to be liable in damages
under or with respect to this Agreement or the application thereof, other than for the payment to
the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the
Developer pursuant to the provisions hereof which are misappropriated or improperly obtained,
withheld or applied by the Local Agency.
O
In general, each of the parties hereto may pursue any remedy at law or equity available
for the breach of any provision of this Agreement, except that the Local Agency shall not be
liable in damages to the Developer, or to any assignee or transferee of the Developer other than
for the payments to the Developer specified in the preceding paragraph. Subject to the
foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach
of, or dispute which arises out of, this Agreement.
[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK]
M. M
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written above.
CITY OF NEWPORT BEACH
im
ATTEST: [Mayor]
City Clerk
M.
[DEVELOPER],
a [here indicate type of legal entity]
By
(Signature)
B -11
(Print Name)
1.
2.
3.
4.
EXHIBIT A TO THE ACQUISITION AGREEMENT
DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS
ACQUISITION IMPROVEMENTS BUDGETED AMOUNTS
IS
EXHIBIT B TO THE ACQUISITION AGREEMENT
FORM OF SCIP REQUISITION
To: Bond Logistix LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Daniel Chang
Fax: 213- 612 -2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the CITY OF NEWPORT BEACH hereby requests
a withdrawal from the [DEVELOPER] ACQUISITION ACCOUNT, as follows:
Request Date:
Name of Developer:
Withdrawal Amount:
[Insert Date of Request]
[Developer]
[Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Developer]
The undersigned hereby certifies as follows:
1. The Withdrawal is being made in accordance with a permitted use of such monies
pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of
reinvestment.
2. None of the items for which payment is requested have been reimbursed previously from
other sources of funds.
3. If the Withdrawal Amount is greater than the funds held in the [Developer] Acquisition
Account, the SCIP Program Administrator is authorized to amend the amount requested to be
equal to the amount of such funds.
4. To the extent the Withdrawal is being made prior to the date bonds have been issued on
behalf of SCIP, this withdrawal form serves as the declaration of official intent of the CITY OF
NEWPORT BEACH, pursuant to Treasury Regulations 1.150 -2, to reimburse with respect
expenditures made from the Developer Acquisition Account listed above in the amount listed
above.
F411 OI0r,IMAMS01:711i MUM
C
Title:
B -13
EXHIBIT C TO THE RESOLUTION
CITY OF NEWPORT BEACH CONTACTS FOR SCIP PROGRAM
Primary Contact
Name: Dan Matusiewicz
Title: Finance Director
Mailing Address: 100 Civic Center Drive
Newport Beach, CA 92660
Delivery Address (if different):
E -mail: dmatusiewicz @newportbeachca.gov
Telephone: 949- 644 -3123
Secondary Contact
Name: Steve Montano
Title: Deputy Finance Director
Fax: 949-644-3339
Mailing Address: 100 Civic Center Drive
Newport Beach, CA 92660
Delivery Address (if different):
E -mail: smontano @newportbeachca.gov
Telephone: 949 -644 -3124
Tertiary Contact
Name: Trevor Power
Title: Senior Accountant
Fax: 949-644-3339
Mailing Address: 100 Civic Center Drive
Newport Beach, CA 92660
Delivery Address (if different):
E -mail: tpower @newportbeachea.gov
Telephone: 949 - 644 -3125 Fax: 949 -644 -3339
C -1
CERTIFICATION OF RESOLUTION
I, the undersigned, the duly appointed and qualified City Clerk of the City of Newport
Beach, do hereby certify that the foregoing Resolution No. was duly adopted at a
regular meeting of the City Council of the City of Newport Beach duly and regularly held at the
regular meeting place thereof on the 28th day of April, 2015, of which meeting all of the
members of said City Council had due notice and at which a majority thereof were present.
An agenda of said meeting was posted at least 72 hours before said meeting at
, a location freely accessible to members of the public, and a brief
description of said resolution appeared on said agenda.
I have carefully compared the foregoing with the original minutes of said meeting on file
and of record in my office, and the foregoing is a full, true and correct copy of the original
resolution adopted at said meeting and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its
adoption and the same is now in full force and effect.
Dated: 2015
[Seal]
City Clerk
City of Newport Beach
.0
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2015 -28 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 281h day of April, 2015, and that the same
was so passed and adopted by the following vote, to wit:
AYES: Council Member Peotter, Council Member Petros, Council Member Duffield,
Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich
NAYS: None
ABSENT: Council Member Curry
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 29`h day of April, 2015.
kjm� J r /IUt k—
City Clerk
Newport Beach, California/
(Seal)