HomeMy WebLinkAboutStaff Report 3.C 01/09/2017Agenda Item #3.0
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DATE: January 9, 2017
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Manager...J 4Z--!�r
SUBJECT: Resolution Approving Cooperative Funding Amendment No. 2 Between the
Sonoma County Transportation Authority and the City of Petaluma
RECOMMENDATION
It is recommended that the City Council/ Petaluma Community Development Successor Agency
adopt a Joint Resolution Approving and Authorizing the City Manager to Execute a Cooperative
Funding Amendment No. 2 Between the Sonoma County Transportation Authority and the City
of Petaluma, to make available $7,000,000 of construction funds for a portion of the Marin
Sonoma Narrows (MSN) C2 project.
BACKGROUND
Note: This section is not intended to provide exhaustive background of the MSN C-2 project, the
Rainier Cross Town Connector Undercrossing/Interchange project, Redevelopment Dissolution,
or the 2011 private placement bonds. Full background information can be accessed in the staff
reports associated with the City Council and Petaluma Community Development Commission
actions taken on the dates noted below.
On January 4, 2010 the City Council approved resolutions which separated the Rainier Cross
Town Connector/Undercrossing project from the larger Rainier Interchange and Crosstown
Connector project. This was done to advance a portion of the larger project over which the City
has most control, with intention to address the remaining project at a later date. The resolutions
approved proceeding with a Project Study Report of the Rainier Avenue Crosstown Connector
Undercrossing (hereinafter the Rainier Project), proceeding with environmental documentation
preparation, and consenting to expenditure of nearly $1.5 million in tax increment for the project.
On December 20, 2010 the City Council adopted Resolution 2010-226 N.C.S. which approved a
Cooperative Funding Agreement between the Sonoma County Transportation Authority (SCTA)
and the City of Petaluma for the Rainier Avenue Undercrossing Structure Project component of
the Marin Sonoma Narrows Segment C (MSN -C) Project. This obligated the City to $498,000
for design work. SCTA estimated the construction phase of the Undercrossing Structure project
at $7 million, and on January 31, 2011 the City Council and PCDC adopted resolutions
authorizing execution of a cooperative agreement between the City and the PCDC committing
tax increment fiends to specified projects, including an additional $7 million to the Rainier
Project.
On January 31, 2011 Assembly Bill (AB) xl 26 was introduced, which proposed to dissolve
Redevelopment agencies statewide. It was subsequently adopted in June, 2011. A legal
challenge, California Redevelopment Association v Matosantos, was ultimately decided in favor
of the State in December 2011 by the California State Supreme Court. AB x1 26 provided
localities could elect to serve as the successor agency charged with winding down the former
redevelopment agency's affairs, including: payment of debt service, contractual obligations
recognized as binding by the State Department of Finance (DOF), and administrative activities
related to dissolution. State approval for funding these activities is obtained by submitting an
annual budget, the Recognized Obligations Payment Schedule (ROPS) for approval by the DOF.
On January 9, 2012 by Resolution No. 2012-007 N.C.S., the City Council elected that the City of
Petaluma serve as the Successor Agency to the former PCDC.
Before AB xt 26 was law, or upheld by the Courts, to avoid disruption of the City's planned
capital improvements and to secure funding for critical projects such as the Old Redwood
Interchange and Rainier Crosstown Connector Undercrossing, the City/PCDC went out for bond
financing.
On March 7, 2011, the City Council, the PCDC, and the Petaluma Public Finance Authority
approved a private placement of debt intended to generate proceeds to fund these critical capital
costs. The City entered into an agreement with a private lender for $11.3 million, intended to
provide approximately $10 million in financing for transportation improvements for the Old
Redwood Highway Interchange Project and the Rainier Project. To "obligate" this debt, for
purposes of State requirements, the City Council adopted Joint Resolution 2011-046 N.C.S. on
March 21, 2011 which authorized the City Manager/Petaluma Community Development
Commission Executive Director to negotiate and execute a cooperative agreement between the
City and SCTA providing a commitment of up to $7,000,000 in construction funds for the
Rainier Avenue Cross Town Connector/Interchange Project pending approval of the City
Attorney and the PCDC Counsel.
The City and SCTA entered into the Cooperative Funding Agreement on March 31, 2011, and
later amended and replaced it in its entirety by Cooperative Funding Agreement, Amendment
No. 1, dated June 15, 2011 (Attachment 2).
The design work under the Funding Agreement was completed, and the City completed
associated environmental review. The construction phase of the project awaits Caltrans and
SCTA funding for the remainder of the MSN C-2 project.
As noted previously, the Successor Agency funds the activities of the former PCDC using the
ROPS process. The ROPS for 2016 was approved by the State DOF in March 2016 and included
a draw -down of approximately $5.8 million in proceeds from the 2011 Bonds for the Old
Redwood Highway Interchange project, the Rainier project, and the E. Washington Interchange
project. This was the maximum that could be obtained at the time, based on monies spent on the
noted projects.
ISCUSSION
A recent fire in eucalyptus trees adjacent to Highway 101 near the E. Washington Interchange,
and the subsequent removal of the damaged trees, initiated a conversation regarding the
desirability of building the sound walls that are to be constructed in that area as part of the MSN
2
C-2 project. SCTA staff is enthusiastic about building the sound walls in order to help expedite
future delivery of the highway widening and to provide benefit to residents, but lack sufficient
funds. The preliminary estimate shows costs to build one or more of the sound walls is between
$7 and $12 million. SCTA and City staff have discussed City allowing SCTA to utilize the
funding for Rainier to build, or help to build, the sound walls, and then subsequently construct
the Rainier undercrossing when the remainder of the MSN C-2 goes forward - using SCTA
funding. To assure the City's funds are protected if the project is not built by May 1, 2025,
SCTA proposes to return the funding at that time, using Measure M funds.
The City has received reimbursement approval for a portion of this project through the ROPS
process, and can request the remainder through the ROPS for 2017 in an amount estimated at
approximately $4.7 million. City staff believes this proposal provides benefits to the residences
and businesses that will be protected by the sound walls. It also provides the benefit of drawing
down remaining 2011 Bond proceeds and putting them to immediate use. Benefits also include
hedging against price inflation that is likely to occur the longer the time between original cost
estimates for the Rainier Undercrossing and its construction.
Amendment No. 2 to the Funding Agreement was negotiated to facilitate this transaction, and
was approved by the SCTA Board on December 12, 2016. This is provided as Exhibit A, to the
attached resolution.
The Agreement provides the City will forward funding within 30 days of commencement of the
project, anticipated to be the acquisition of temporary construction easements necessary to build
the sound walls. SCTA would then be responsible for constructing the Rainier Undercrossing
component at the time the remainder of the MSN C-2 project goes forward, or repaying the funds
if construction has not occurred by May 1, 2025. SCTA's current Measure M Highway 101
cash flow estimates project a balance of over $17M in 2025 to provide funds if repayment is
needed.
The transaction is contingent on State DOF approval of a request for funding on the 2017 ROPS.
A separate item on the January 9, 2017 agenda is the 2017 ROPS, which includes a line item for
the project, in an amount of $4.7 million. The ROPS is scheduled for Oversight Board
consideration later in January, and submission to the DOF by February 1, 2017.
FINANCIAL IMPACTS
Reimbursement of approximately $5.88 million from the 2011 Bonds was approved by the DOF
on the 2016 ROPS. An additional $4.7 million has been included on the ROPS for 2017.
Together, these amounts draw down the 2011 Bonds, recover funding for the Old Redwood
Highway and E. Washington Interchange projects, and provide funding for the Rainier
Undercrossing project and this recommended transaction.
ATTACHMENTS
1. Resolution with Exhibit A: Cooperative Funding Agreement, Amendment No. 2
2. Cooperative Funding Agreement, Amendment No. 1, dated June 15, 2011
JOINT RESOLUTION NO.
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AND THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
COOPERATIVE FUNDING AMENDMENT NO. 2 BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY AND
THE CITY OF PETALUMA, TO MAKE AVAILABLE $7,000,000 OF CONSTRUCTION
FUNDS FOR A PORTION OF THE MARIN SONOMA NARROWS (MSN) C-2
PROJECT.
WHEREAS, the City of Petaluma (City) is a California municipal corporation and
charter city; and
WHEREAS, the Petaluma Community Development Commission (PCDC) was a
redevelopment agency formed, existing, and exercising its powers pursuant to California
Community Redevelopment Law, Health and Safety Codes Section 3000 et. seq.; and
WHEREAS, under ABxl 26 and the California Supreme Court's decision in California
Redevelopment Association v Matosantos, all California Redevelopment agencies, including the
PCDC, were dissolved on February 1, 2012; and
WHEREAS, on January 9, 2012 by Resolution No. 2012-007 N.C.S., the City Council
elected that the City of Petaluma serve as the Successor Agency (Successor Agency) to the
former PCDC; and
WHEREAS, on January 4, 2010 the City Council and the PCDC adopted resolutions
approving proceeding with a Project Study Report of the Rainier Avenue Crosstown Connector
Undercrossing (the Rainier Project), proceeding with environmental documentation preparation
and consenting to expenditure of nearly 1.5 Million in tax increment for the project, and making
required findings under California Health and Safety Code section 33445; and
WHEREAS, on December 20, 2010 the City Council adopted Resolution 2010-226
N.C.S. Authorizing the City Manager to Execute a Cooperative Funding Agreement between the
Sonoma County Transportation Authority (SCTA) and the City of Petaluma for the Rainier
Avenue Undercrossing Structure Project C00501204 Segment C2 Component of the Marin
Sonoma Narrows Segment C (MSN -C) Project; and
WHEREAS, on January 31, 2011 the City Council and the PCDC adopted resolutions
authorizing execution of a cooperative agreement between the City and the PCDC committing
tax increment funds to the specified projects, including commitment of an additional $7 Million
4
to the Rainier Project and making required findings under California Health and Safety Code
section 33445; and
WHEREAS, on March 7, 2011, the City Council, the PCDC, and the Petaluma Public
Financing Authority authorized proceeding with a private placement of debt intended to generate
debt proceeds of up to $15 million to fund improvement costs for the Old Redwood Highway
Interchange and the Rainier Project; and
WHEREAS, the City entered into an agreement with a private lender for $11.3 million in
financing, to provide approximately $10 million in financing for transportation improvements for
the Old Redwood Highway Interchange Project and the Rainier Project (2011 Bonds); and
WHEREAS, on March 21, 2011 the City Council/PCDC adopted Joint Resolution 2011-
046 N.C.S., which authorized the City Manager/PCDC Executive Director to negotiate and
execute a cooperative agreement between the City and SCTA providing a commitment of up to
$7,000,000 in construction funds for the Rainier Avenue Cross Town Connector/Interchange
Project pending approval of the City Attorney/PCDC Counsel; and
WHEREAS, the Parties entered into that certain Cooperative Funding Agreement dated
as of March 31, 2011 (the "Original Cooperative Agreement"), which Original Cooperative
Agreement was subsequently amended and replaced in its entirety by that certain Cooperative
Funding Amendment No. 1 dated as of June 15, 2011 (hereafter, the "First Amended
Cooperative Agreement"); and
WHEREAS, in February 2016 the Successor Agency requested through the Recognized
Obligations Payment Schedule (ROPS) process, and in March 2016 the State Department of
Finance approved the Successor Agency's request to draw down approximately $5.8 million in
proceeds from the 2011 Bonds for the Old Redwood Highway Interchange and Rainier Projects,
and the E. Washington Interchange Project; and
WHEREAS, SCTA desires to move forward with a portion of the MSN C-2 project,
specifically the installation of sound walls at the East Washington Interchange, which is
estimated to have a cost of approximately $7 million; and
WHEREAS, SCTA currently lacks the funds to commence construction of the sound
walls, but the Successor Agency has or may seek to access through the ROPS process the funds
that have been reserved for construction of the Rainer Project; and
WHEREAS, SCTA and City staff have negotiated an Amendment (Second Cooperative
Agreement Amendment) to the First Amended Cooperative Agreement to make this funding
available for use by SCTA for the sound wall component of the MSN C-2 Project, and which
obligates SCTA to construct the Rainier Project as a component of the MSN C-2 Project, or
return the forwarded funds to the City if the Rainier Project is not constructed by May 1, 2025;
and
WHEREAS, the funding committed by this action is related to a project which was the
subject of the Original Cooperative Agreement approved by the City Council and the PCDC on
January 31, 2011 by City Resolution No. 2011-016 N.C.S. and PCDC Resolution No. 2011-02,
respectively, and which contained detailed CEQA findings for the MSN C-2 Project. Notices of
Determination pursuant to CEQA for the cooperative agreement were filed by the City Clerk and
PCDC on or about February 7, 2011 and no further CEQA review is required for this action;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma and
the Board of the Petaluma Community Development Successor Agency as follows:
1. The City Manager/PCDSA Executive Director is hereby authorized on behalf of the City
and the PCDSA to execute the attached Cooperative Funding Amendment No. 2 Between
the Sonoma County Transportation Authority and the City of Petaluma, incorporated as
Exhibit A to this Resolution.
2. The City Manager/PCDSA Executive Director is hereby authorized on behalf of the City
and the PCDSA to undertake such actions and to execute such additional instruments as
may be necessary or desirable to carry out the intent of this resolution.
3. If any provision, sentence, clause, section or part of this resolution is found to be
unconstitutional, illegal, or invalid, such finding shall affect only such provision,
sentence, clause, section or part, and shall not affect or impair any remaining parts.
I
EXHIBIT A
COOPERATIVE FUNDING AMENDMENT NO. 2
BETWEEN THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND CITY OF PETALUMA
This Cooperative Funding Amendment No. 2 (this "Amendment") is made and entered
into as of , 2017 ("Effective Date") by and between the City of
Petaluma ("City") and the Sonoma County Transportation Authority (the "Authority"). The
City and the Authority are collectively referred to herein as the "Parties."
RECITALS
A. The Parties entered into that certain Cooperative Funding Agreement dated as of
March 31, 2011 (the "Original Agreement"). The Original Agreement was subsequently
amended and replaced in its entirety by that certain Cooperative Funding Amendment No.
dated as of June 15, 2011 (hereafter, the "Funding Agreement").
B. The Funding Agreement defines a framework to enable the Parties to work
cooperatively to develop plans, specifications, and estimates, perform environmental work, and
undertake construction for the Rainier Cross Town Connector Undercrossing (the "Rainier
Component") as a component of the Marin Sonoma Narrows C2 project in Sonoma County
(referred to herein as the "MSN C2 Project" or the "Project"). Among other things, the
Funding Agreement addresses the respective responsibilities of the Parties regarding completion
of environmental review, design, engineering, financing, bidding, and construction of the various
components of the MSN C2 Project, including the Rainier Component.
C. As described in the Funding Agreement, the City consented to the commitment by
the former Petaluma Community Development Commission ("PCDC") to provide funds for the
Project in the amount of Four Hundred Ninety -Eight Thousand Dollars ($498,000) for the
development of plans, specifications and estimates, and an additional Seven Million Dollars
($7,000,000) for construction costs.
D. Effective as of the dissolution of PCDC on February 1, 2012, the City serves as
the successor agency to PCDC ("Successor Agency").
E. Both the Oversight Board to the Successor Agency ("Oversight Board") and the
State Department of Finance ("DOF") have acknowledged that PCDC's commitment of fiinds
for the Project is an enforceable obligation of the Successor Agency, and have approved the
expenditure of the proceeds of bonds issued by PCDC for the Project.
F. The Parties desire to amend the Funding Agreement to address the schedule for
the City's/Successor Agency's advance of funds for, and the Authority's completion of, the
Project, including the Rainier Component.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing, the Parties do hereby agree as
follows:
Funding. Contingent upon approval by the Oversight Board and DOF as reflected in
their approval of the Successor Agency's Recognized Obligation Payment Schedule for fiscal
year 2017-18 ("ROPS 2017-18"), the City will arrange to advance to the Authority the
remainder of the funds that PCDC committed to provide for the Project. The Parties
acknowledge and agree that as of the Effective Date, the sum of $63,745.57 remains undisbursed
of the original $498,000 budgeted for plans, specifications and estimates (the "PS&E Budget"),
and the entire $7,000,000 remains undisbursed of the original funds budgeted for construction
(the "Construction Budget").
2. Payments. The Authority will submit monthly invoices to City for the development of
the plans, specifications and estimates ("PS&E Work"), along with a summary of the work
completed to date and such documentation as City shall reasonably require. In the aggregate,
City's advance of funds for PS&E Work shall not exceed the PS&E Budget without City's prior
written consent. City shall arrange for advances of funds in the aggregate amount of the
Construction Budget within thirty (30) days following Authority's commencement of acquisition
of right-of-way for the Project, including acquisition of temporary construction easements -for
construction of the MSN C2 Project components. The Parties anticipate that the Authority will
require the expenditure of funds in an amount equal to the entire Construction Budget during the
period covered by ROPS 2017-18. In the aggregate, City's advance of funds for construction of
the MSN C2 Project components shall not exceed the Construction Budget without City's prior
written consent.
3. Completion. The Authority will diligently proceed to complete the various components
of the MSN C2 Project. If construction of the Rainier Component is not completed by May 1,
2025 ("Outside Date"), the Authority will reimburse the City in the amount of the Construction
Budget using Measure M Highway 101 Program Funds or other sources of funds available to the
Authority by not later than 30 days following the Outside Date. The Authority shall be
responsible for reimbursement to City of any costs incurred by City in connection with
enforcement of this Section 3. This Section 3 shall survive the cancellation, termination, or
discharge of the Funding Agreement.
4. Agreement Remains Effective. Except as modified by this Amendment, the Funding
Agreement remains unmodified and is in full force and effect.
5. Miscellaneous.
M
5.1 Notices. Any notice which may be required under this Amendment shall be in
writing, shall be effective when received, and shall be given by personal service, or by certified
or registered mail, return receipt requested, to the addresses set forth below, or to such addresses
which may be specified in writing to the Parties.
To City: John Brown
City Manager
City of Petaluma
11 English Street, Petaluma CA 94592
(707) 778-4467
jbrown@ci.petaluma.ca.us
To Authority: Suzanne Smith
Executive Director
Sonoma County Transportation Authority
490 Mendocino Avenue, Suite 206
Santa Rosa, CA 95401
(707)565-5373
suzsmith@scta.ca.gov
5.2 Additional Acts and Documents. Each Party agrees to do all such things and take
all such actions, and to make, execute and deliver such other documents and instruments, as shall
be reasonably requested to carry out the provisions, intent and purpose of this Amendment.
5.3 Integration. This Amendment and the Funding Agreement represents the entire
agreement of the Parties with respect to the subject matter hereof. No representations,
warranties, inducements or oral agreements have been made by any of the Parties except as
expressly set forth herein, or in other contemporaneous written agreements.
5.4 Amendment. This Amendment may not be changed, modified or rescinded
except in writing, signed by all Parties, and any attempt at oral modification of this Amendment
shall be void and of no effect.
5.5 Independent Agencies. City renders its services under the Agreement and this
Amendment as an independent agency. None of the City's agents or employees shall be agents
or employees of the Authority. Authority renders its services under the Agreement and this
Amendment as an independent agency. None of the Authority's agents or employees shall be
agents or employees of the City.
5.6 Assignment. Neither the Agreement nor this Amendment may be assigned,
transferred, hypothecated, or pledged by any Party without the express written consent of the
other Party.
I
5.7 Successors. This Amendment shall be binding upon the successor(s), assignee(s)
or transferee(s) of the Authority or City as the case may be. This provision shall not be
construed as an authorization to assign, transfer, hypothecate or pledge this Amendment other
than as provided above.
5.8 Severability. Should any part of this Amendment be determined to be
unenforceable, invalid, or beyond the authority of either Party to enter into or carry out, such
determination shall not affect the validity of the remainder of this Amendment which shall
continue in full force and effect, provided that the remainder of this Amendment can, absent the
excised portion, be reasonably interpreted to give effect to the intentions of the Pal -ties.
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Effective
Date.
CITY OF PETALUMA
By:
City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO LEGAL FORM:
By:
City Attorney
APPROVED:
Department Director
APPROVED:
Risk Manager
Finance Director
SONOMA COUNTY
TRANSPORTATION AUTHORITY
By:
SCTA Chair
APPROVED AS TO SUBSTANCE:
By:
Executive Director
'
Legal Counsel to Authority
10
Contract No. SCTA11012 A-1
COOPERATIVE FUNDING AMENDMENT NO.1 ATTACHMENT 2
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF PETALUMA
This Amendment No. 1 is made and entered into as of
2011 ("Effective Date") by and between the City of
aluma hereinafter referred to as "CITY" and the SONOMA COUNTY
TRANSPORTATION AUTHORITY hereinafter referred to as "AUTHORITY."
RECITALS
1. AUTHORITY and CITY desire to enter into a Cooperative Funding
Amendment No. 1 to define a framework to enable the two parties to work cooperatively in
developing plans, specifications, and estimates (PS&E), environmental work and
construction phases for the Rainier Cross Town Connector Undercrossing structure to be
included in the Marin Sonoma Narrows C-2 project in Sonoma County, as more
particularly described in Exhibit A to this agreement (hereinafter referred to as
"Undercrossing Project"), Amendment No. 1 to Agreement NO.SCTAI 1012 replaces
Agreement No.SCTA11012 in its entirety.
2. Caltrans has completed the Environmental (PAED) phase of the MSN Project,
3. AUTHORITY is the lead for the development of Plans, Specifications and
Estimate (PS&E) for MSN C2 Project,
4. AUTHORITY in cooperation with Caltrans will take appropriate measures to
environmentally clear the addition of the Undercrossing Project structure in the MSN C2
Project.
5. CITY will environmentally clear the Rainier Cross Town Connector Project as
a separate construction project, independent of the Undercrossing Project.
6. AUTHORITY and CITY developed a financial plan, a schedule, and roles and
responsibilities for completion of the Undercrossing Project which is attached hereto as
Exhibit B, Exhibit C, and Exhibit D (hereinafter referred to as the "Project Plan").
7. CITY adopted Resolution No. 2010-009 N.C.S. on January 4, 2010 which
separated the Rainier Interchange Project into two independent projects (Independent
Project 1 — Rainier Interchange and Independent Project 2, Rainier Cross Town
Connector), and based on findings required under the Community Redevelopment Law
(California Health and Safety Code §33000 etseq.), consented to contribution of $498,000
of tax increment funds of the Petaluma Community Development Commission (hereinafter
referred to as "PCDC") for the incorporation of the Undercrossing Project structure into
the plans, specification and estimate (PS&E) of the MSN C2 project. By Resolution No.
Cooperative Funding Agreement SCTA11012
A-1
City of Petaluma
Page 1 of 13
Contract No. SCTA11012 A-1
2010-02, based on findings required under the Community Redevelopment Law, PCDC
authorized contribution of $498,000 of PCDC tax increment funds for incorporation of the
Undercrossing Project structure into the PS&E of the MSN C2 project. (Resolution No.
2010009 N.C.S. attached hereto as Exhibit E, Resolution No. 2010-02 attached here to as
Exhibit F.)
8. CITY will provide $498,000 in funding to pay for the development of PS&E for
the Undercrossing Project,
9. AUTHORITY is committed to developing the PS&E for the MSN C-2 Project
and incorporating the Undercrossing Project structure into the MSN C-2 Project pending
CITY obtaining environmental clearance of the separate Rainier Cross Town Connector
Project.
10. AUTHORITY is not committed to providing funds for the development of the
PS&E or construction phase of Undercrossing Project as part of the MSN C-2 Project.
CITY has sole responsibility for funding all work and costs of the Undercrossing Project,
as set forth in this Agreement; AUTHORITY has no obligation to perform the work
anticipated by this Agreement if funds to do so are unavailable.
11. CITY is requesting that AUTHORITY incorporate the PS&E for the
Undercrossing Project structure into its construction contracts as part of the MSN C-2
project if sufficient construction funds are available to constrict the undercrossing
structure at the time the MSN C-2 project is ready to advertise for construction bids.
12. CITY, on January 31, 2011, adopted Resolution no. 2011-016 making
findings required under the Community Redevelopment Law, consenting to the
expenditure of tax increment funds for specified public improvements and redevelopment
activities, including the Undercrossing Project, and authorizing execution of a cooperative
agreement between CITY and PCDC committing tax increment funds to specified
projects, including the Undercrossing Project. PCDC, on January 31, 2011 adopted
Resolution no. 2011-02 making findings required under the Community Redevelopment
Law authorizing expenditure of tax increment funds for specified improvements and
redevelopment activities, including the Undercrossing Project, and authorizing execution
of a cooperative agreement between CITY and PCDC committing tax increment funds to
specified projects, including the Undercrossing Project.
13. CITY on March 7, 2011, by Resolution no. 2011-039, authorized issuance
by PCDC of tax allocation bonds. PCDC, on March 7, 2011, by Resolution no. 2011-05,
authorized issuance of tax allocation bonds. The Petaluma Public Financing Authority on
March 7, 2011, by Resolution no. 2011-01 authorized purchase and sale of the PCDC
bonds.
14. CITY and the PCDC, on March 21, 2011 jointly adopted Resolution No. 2011-
046 authorizing and directing the CITY Manager/PCDC Executive Director to negotiate
Cooperative Funding Agreement SCTA11012
A-1
City of Petaluma
Page 2 of 13
Contract No. SCTA11012 A-1
with AUTHORITY and execute an agreement committing up to $7,000,000 of private
placement PCDC debt proceeds for the Undercrossing Project, as approved by legal
counsel.
NOW, THEREFORE, in consideration of the foregoing, AUTHORITY and CITY
do hereby agree as follows:
SECTION I
CITY AGREES:
1. Total CITY Contribution. To provide $498,000 in local funds Cor other CITY
contribution] towards the Undercrossing Project for the development of the PS&E and up
to $7,000,000 for the construction phase of the Undercrossing Project in accordance with
the MSN C-2 HOV Project, for a total City funding commitment under this Agreement to
the Undercrossing Project of $7,498,000, as specified in the Financial Plan in Exhibit B.
The cost of CITY's own administration, independent duality assurance, oversight, and
project management is not considered a Project cost that is covered by this agreement and
is not included in the MSN C-2 Project. CITY understands and acknowledges that it has
sole funding responsibility for the Undercrossing Project. AUTHORITY has no obligation
to perform work that is not funded by CITY.
2. Completion of Work. To timely complete the environmental clearance of the
separate Rainier Cross Town Connector Project in accordance with the deadlines set forth
in the MSN C-2 Project.
3. Pa ment. Invoices shall be submitted monthly to the CITY for the development
of the PS&E, along with a summary of the work completed to date. Total PS&E payments
shall not exceed $498,000 without CITY's consent. AUTHORITY will invoice CITY
for a $290,000 initial deposit 30 working days prior to the construction contract bid
advertisement date. This deposit represents one (1) months' estimated capital costs.
Thereafter, AUTHORITY will submit to CITY monthly invoices for estimated monthly
costs based on the prior month's actual expenditures. CITY agrees to make payments
within 30 days. When CITY and AUTHORITY agree all work is complete,
AUTHORITY will submit a ficial accounting to CITY. Based on the final accounting,
CITY and AUTHORITY will refiind or invoice as necessary in order to satisfy the
financial commitments in this Agreement.
4. Compliance with Laws. With regard to administering and completing CITY's
responsibilities for the Undercrossing Project, CITY shall at all times comply with all
applicable laws of the United States, the State of California, the County, and with all
applicable regulations promulgated by federal, state, regional, or local administrative and
regulatory agencies, now in force and as they may be enacted, issued, or amended during
the term of this Agreement.
Cooperative Funding Agreement SCTA11012
A-1
City of Petaluma
Page 3 of 13
Contract No. SCTA11012 A-1
5. Records. To allow AUTHORITY to audit all expenditures relating to the
Undercrossing Project funded through this Agreement. For the duration of the Project, and
for five (5) years following completion of the Project, or earlier discharge of the
Agreement, CITY shall make available to AUTHORITY all records relating to expenses
incurred in performance of this Agreement.
6. Notice of Audit. To provide timely notice to AUTHORITY if an audit is to be
conducted.
SECTION II
AUTHORITY AGREES:
1. Total AUTHORITY Contribution. The cost of AUTHORITY's own
administration, independent quality assurance, oversight, and project management is not
considered a Project cost that is covered by this agreement and is not included in the
Project Plan.
2. Agreements. To modify AUTHORITY'S agreement with design consultant to
include the PS&E of the Undercrossing Project.
3. Completion of Work. To timely complete the work necessary to complete
PS&E of the MSN C-2 project including the Undercrossing Project structure.
4. Payment. To request payment from CITY for PS&E, based on monthly
invoices. The total cost of PS&E work shall not exceed $498,000. To request payment
from CITY for construction costs, based on monthly invoices of estimated expenses, in
advance. Subject to the terms of this Agreement, including, but not limited, provision I of
Section III, total CITY payments for construction costs will not exceed $7,000,000.
5. Initial Deposit. AUTHORITY will invoice CITY for a $290,000. initial deposit
30 working days prior to the construction contract bid advertisement date. This
deposit represents one (1) months' estimated capital costs.
5. Compliance with Laws. With regard to administering and completing the
AUTHORITY's responsibilities for the Project, AUTHORITY shall at all times comply
with all applicable laws of the United States, the State of California, the County, and with
all applicable regulations promulgated by federal, state, regional, or local administrative
and regulatory agencies, now in force and as they may be enacted, issued, or amended
during the term of this Agreement.
6, Records. To allow CITY to audit all expenditures relating to the Project funded
through this Agreement. For the duration of the Project, and for five (5) years following
Cooperative Funding Agreement SCTAI 1012
A-1
City of Petaluma
Page 4 of 13
Contract No. SCTA11012 A-1
completion of the Project, or earlier discharge of the Agreement, AUTHORITY shall
make available to CITY all records relating to expenses incurred in performance of this
Agreement.
7. Notice of Audit. To provide timely notice to CITY if an audit of CITY records
is to be conducted.
SECTION III
IT IS MUTUALLY AGREED:
1, Funding Needs. AUTHORITY will not incur costs beyond the funding
commitment in this Agreement without CITY's consent and agreement. If additional
funds beyond those identified in the Project Plan are necessary to complete the
Undercrossing Project, AUTHORITY and CITY will cooperate to identify and secure
new, increased, or replacement funding. If funding cannot be identified to complete the
project, this agreement can be discharged by either party as provided in Paragraph 3 or 13.
Nothing in this Agreement commits AUTHORITY to utilize its own funds on the
Undercrossing Project, or commence or continue the Project unless full funding has been
identified and is committed.
2. Term. This Agreement will remain in effect until discharged as provided in
Paragraph 3 or 13 of this Section 11I.
3. Discharge. This Agreement shall be subject to discharge as follows:
a. This Agreement may be canceled by a party for breach of any obligation,
covenant or condition hereof by the other party, upon notice to the breaching party. With
respect to any breach which is reasonably capable of being cured, the breaching party shall
have thirty (30) days from the date of the notice to initiate steps to cure. If the breaching
party diligently pursues cure, such party shall be allowed a reasonable time to cure, not to
exceed sixty (60) days from'the date of the initial notice, unless a further extension is
granted by the non -breaching party. On cancellation, the non -breaching party retains the
same rights as a party exercising its right to terminate under the provisions of paragraph
3(b), except that the canceling party also retains any remedy for breach of the whole
contract or any unperformed balance.
b. By mutual consent of both parties, this Agreement may be terminated at any time
with 30 day written notice.
c. By either party up until the time construction contract is advertised for
construction bids. In the event this Agreement is cancelled pursuant to this paragraph,
CITY shall remain responsible for paying any non -cancellable costs incurred in accordance
with this Agreement prior to the notice of termination.
Cooperative Funding Agreement SCTA11012
A-1
City of Petaluma
Page 5 of 13
Contract No. SCTA 11012 A -I
4. Indemnity. Neither CITY nor any officer or employee thereof is responsible for.
any injury, damage or liability occurring by reason of anything done or omitted to be done
by AUTHORITY under or in connection with any work, authority, or jurisdiction
conferred upon AUTHORITY or arising under this Agreement.
It is understood and agreed that AUTHORITY will fully defend, indemnify, and save
harmless CITY and all of its officers and employees from all claims, suits, or actions of
every name, kind, and description brought forth under, but not limited to, tortious,
contractual, inverse condemnation, or other theories or assertions of liability occurring by
reason of anything done or omitted to be done by AUTHORITY under this Agreement.
Neither AUTHORITY nor any officer or employee thereof is responsible for any injury,
damage, or liability occurring by reason of anything done or omitted to be done by CITY
tinder or in connection with any work, authority, or jurisdiction conferred upon CITY or
arising under this Agreement.
It is understood and agreed that CITY will fully defend, indemnify, and save harmless
AUTHORITY and all of its officers and employees from all claims, suits, or actions of
every name, kind, and description brought forth under, but not limited to, tortious,
contractual, inverse condemnation, or other theories or assertions of liability occurring by
reason of anything done or omitted to be done by CITY under this Agreement.
This indemnification provision shall survive termination of this Agreement.
5, Notices. Any notice which may be required under this Agreement shall be in
writing, shall be effective when received, and shall be given by personal service, or by
certified or registered mail, return receipt requested, to the addresses set forth below, or to
such addresses which may be specified in writing to the parties hereto.
To CITY: John Brown
City Manager
City of Petaluma
11 English Street, Petaluma CA 94592
(707) 778-4467
jbrown@ci.petaluma.ca.us
To AUTHORITY: Suzanne Smith
Executive Director
Sonoma County Transportation Authority
490 Mendocino Avenue, Suite 206
Santa Rosa, CA 95401
(707) 565-5373
stizsmith@sctainfo.org
Cooperative Funding Agreement SCTA 11012
A-1
City of Petaluma
Page 6 of 13
Contract No, SCTA11012 A-1
6. Additional Acts and Documents. Each party agrees to do all such things and
take all such actions, and to make, execute and deliver such other documents and
instruments, as shall be reasonably requested to carry out the provisions, intent and
purpose of the Agreement.
7. Integration. This Agreement represents the entire agreement of the parties with
respect to the subject matter hereof. No representations, warranties, inducements or oral
agreements have been made by any of the parties except as expressly set forth herein, or in
other contemporaneous written agreements.
8. Amendment. This Agreement may not be changed, modified or rescinded except
in writing, signed by all parties hereto, and any attempt at oral modification of this
Agreement shall be void and of no effect.
9. Independent Agencies. CITY renders its services under this Agreement as an
independent agency. None of the CITY's agents or employees shall be agents or
employees of the AUTHORITY. AUTHORITY renders its services under this
Agreement as an independent agency. None of the AUTHORITY's agents or employees
shall be agents or employees of the CITY.
10. Assi nment. The Agreement may not be assigned, transferred, hypothecated, or
pledged by any party without the'express written consent of the other party.
11. Successors.. This Agreement shall be binding upon the successor(s), assignee(s)
or transferee(s) of the AUTHORITY or CITY as the case may be. This provision shall
not be construed as an authorization to assign, transfer, hypothecate or pledge this
Agreement other than as provided above.
12. Severability. Should any part of this Agreement be determined to be
unenforceable, invalid, or beyond the authority of either party to enter into or carry out,
such determination shall not affect the validity of the remainder of this Agreement which
shall continue in full force and effect, provided that the remainder of this Agreement can,
absent the excised portion, be reasonably interpreted to give effect to the intentions of the
parties.
13. Limitation. All obligations of AUTHORITY under the terms of this
Agreement are expressly subject to AUTHORITY's continued authorization to collect and
expend the sales tax proceeds provided by Measure M. If for any reason AUTHORITY's
right to collect or expend such sales tax proceeds is terminated or suspended in whole or
part, AUTHORITY shall promptly notify CITY, and the parties shall consult on a course
of action. If, after twenty-five (25) working days, a course of action is not agreed upon by
the parties, this Agreement shall be deemed terminated by mutual or joint consent;
provided, that any fixture obligation to fund from the date of the notice shall be expressly
limited by and subject to (i) the lawful ability of AUTHORITY to expend sales tax
Cooperative Funding Agreement SCTA11012
A-1
City of Petaluma
Page 7 of 13
.11
Contract No. SCTA11012 A-1
proceeds for the purposes of the Agreement; and (ii) the availability, taking into
consideration all the obligations of AUTHORITY under all outstanding contracts,
agreements to other obligations of AUTHORITY, of funds for such purposes.
Cooperative Funding Agreement SCTAI 1012
A-1
City of Petaluma
Page 8 of 13
Contract No. SCTA 11012 A-1
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.
CITY OF PL(A-U(,M-k SONOMA COUNTY
TRA PORTATION AU RITY
L 'd Byy' )r-� 0-��
3y, I�CL
City Manager 111 r C/ SCTA Chair
ATTEST:
APPROVED AS TO SUBSTANCE:
By: By:
City Cleric Executive Director
APPRO A TO LEGAL FORM
FOR C T
By:
City Attorney
APPROVED:
nb..
Depa tment Director
By: —
Legal Counsel
Authority
APPROVED:
- A-4jlt\
Finance Director
Cooperative Funding Agreement SCTA11012
A-]
City of Petaluma
Page 9 of 13
Contract No. SCTA11012 A-1
COOPERATIVE FUNDING AGREEMENT
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF PETALUMA
EXHIBIT A
DESCRIPTION OF THE PROJECT
Design and construction of a new six -lane structure to allow the undercrossing of
Highway 101 for Rainier Avenue as part of the MSN C2 project. The Undererossing
Structure shall not preclude a fixture interchange at this location.
Exhibit A
Cooperative Funding Agreement SCTA11012
City of Petaluma
Page 10 of 13
Contract No. SCTA11012 A-1
COOPERATIVE FUNDING AGREEMENT
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF PETALUMA
EXHIBIT B
PROJECT FINANCIAL PLAN
Funding Plan by Fund Source and Development Phase for the Rainier Avenue
Undercrossing Structure
FUND SOURCE
PS&E
CONSTRUCTION
TOTAL
CITY
$498,000
$7,000,000
$7,498,000
TOTAL
$498,000
$7,000,000
$7,498,000
Exhibit B
Cooperative Funding Agreement SCTA11012
City of Petaluma
Page 11 of 13
tom:.
Contract No. SCTA11012 A -I
COOPERATIVE FUNDING AGREEMENT
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF PETALUMA
EXHIBIT C
PROJECT SCHEDULE
Project Development Phase
Begin
End
Environmental PAED)
Complete
Complete
Environmental Revalidation
12/1/2110
6/1/2011
Design (PS&E)
Apr 2009
Dec 2012
*Right of Way Acquisition ROW
TBD
TBD
*Advertise, Award, Approve AAA
TBD
TBD
*Construction CON
TBD__J_
TBD
* Right of Way Capital and Construction Capital and Capital Support funding, other than the
$7,000,000 provided by CITY, have not yet been identified for the MSN C2 project, therefore, the
schedule at this time is unknown.
Exhibit C
Cooperative Funding Agreement SCTAl 1012
City of Petaluma
Page 12 of 13
Contract No. SCTA11012 A-1
COOPERATIVE FUNDING AGREEMENT
BETWEEN
THE SONOMA COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF PETALUMA
I D1:ia f.�(I0C
RESPONSIBILITIES OF THE PARTIES
Table D-1: Responsible Implementing Agency y Development Phase
Project Activity
Imp ementing Agency
Caltrans
Authority
City
Environmental (PAED) MSN Project
X
Environmental Revalidation for Rainier
Undercrossing Structure
X
X
Environmental Clearance for Rainier Cross Town
Connector
X
Design (PS&E) for MSN C2 including Rainier
Undercrossing Structure
X
Right of Way Engineering and Support for MSN
C2 including Rainier Undercrossing Structure
X
*Right of Way Capital
X
*Advertise, Award, Approve (AAA)
X
* Right of Way Capital and Construction Capital funding, other than the $7,000,000
provided by CITY have not yet been identified for the MSN C2 project. The implementing
agency for construction has not yet been assigned.
1661597.1
Exhibit D
Cooperative Funding Agreement SCTA 11012
City of Petaluma
Page 13 of 13
Resolution No. 2010-009 N.C.S. EXHIBIT 9
of the City of Petaluma, California
RESOLUTION AUTHORIZING PROCEEDING WITH A PROJECT STUDY
REPORT FOR THE RAINIER AVENUE CROSS TOWN CONNECTOR, WHICH
INCLUDES AN UNDERCROSSING ON US 101 FOR THE EXTENSION OF
RAINIER AVENUE (INDEPENDENT ELEMENT 2); CONTINUE TO PURSUE
APPROVAL OF THE PROJECT STUDY REPORT FOR THE RAINIER AVENUE
INTERCHANGE PROJECT SEPARATELY AND CONCURRENTLY WITH THE
PROJECT STUDY REPORT FOR THE RAINIER AVENUE CROSS TOWN
CONNECTOR PROJECT; PROCEEDING WITH THE ENVIRONMENTAL
DOCUMENT PREPARATION (INDEPENDENT ELEMENT 2); AND CONSENTING
TO THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE RAINIER
CROSS-TOWN CONNECTOR PROJECT C00501204, AND ADOPTING FINDINGS
REQUIRED BY HEALTH AND SAFETY CODE SECTION 33445
WHEREAS, Sonoma County Transportation Authority (SCTA) will be entering into an
agreement with a consultant to prepare the plans, specifications and construction estimate for the
Marin Sonoma Narrows C-2 HOV Widening Project (MSN C-2 Project) through Petaluma; and
WHEREAS, the Rainier Avenue Interchange/Cross Town Connector and Undercrossing
of US 101 is within the limits of the MSN C-2 Project; and
WHEREAS, the Rainier Avenue Interchange/Cross Town Connector and Undercrossing
of US 101 Project Study Report is still under review by Caltrans and may not be approved in
time to incorporate the Project's undercrossing structure into the design of the MSN C-2; and
WHEREAS, it is recognized that the Rainier Avenue Interchange/Cross Town
Connector and Undercrossing -of US 101 Project is in the City of Petaluma's General Plan, and
that design and construction of the larger project can be split into two independent elements
(Interchange, independent element 1, and Cross Town Connector, including undercrossing of US
101, independent element 2) and still meet the intent of the General Plan; and
WHEREAS, Caltrans has stated their support for the Rainier Avenue Cross Town
Connector Project (element 2) ("the Project"), and staff anticipates a letter of concurrence by the
time City Council convenes; and
Resolution No. 2010-009 N.C.S.
Page I
WHEREAS, Caltrans, Sonoma County Transportation Authority (SCTA), and the City
agree that by proceeding in a timely fashion with a Project Study Report (PSR) and
environmental document for the Project as an independent element (2), the design of the
undercrossing structure can be incorporated into SCTA's design of the MSN C-2 Project; and
WHEREAS, incorporation of the undercrossing structure component concurrently' into
the design of SCTA's MSN C-2 Project will result in earlier receipt of project benefits, cost
efficiencies, reduction of traffic disruption and shorter, construction duration; and
WHEREAS, California Health and Safety Code Section 33445 provides that
redevelopment agencies may, with the consent of the legislative body; pay all or part of the value
of land for and the cost of the installation. and construction of any building, facility, structure, or
other improvements that are publicly owned either within or without the project area, subject to
certain specified findings being made; and
WHEREAS, the Project is funded from $3M City/PCDC; and
WHEREAS, before the PCDC may commit funds for publicly owned improvements, the
consent of the legislative body must be given and the following findings must be made in
accordance with California Health and Safety Code Section 33445:
1. That the improvements are of benefit to the project area or the immediate
neighborhood in which the project is located;
2. That no other reasonable means of financing the improvements -is available to the
community; and
3. That the payment of funds for the cost. of the improvements will assist in the
elimination of one or more blighting condition inside the project area, and will be
consistent with the implementation plan adopted by the redevelopment agency;
and
WHEREAS, the Petaluma Community Development Commission ("PCDC") Five -Year
Implementation Plan ("Implementation Plan") for the Central Business District ("CBD") and
Petaluma Community Development ("PCD") areas (collectively, the "Project Areas"), approved
by the PCDC on June 11, 2007, provides for the transfer of certain specified tax increment funds
for the purpose of funding roadway reconstruction and related improvements as more
particularly described in the Implementation Plan, including the Project; and
Resolution No. 2010-009 N.C.S.
Page 2
WHEREAS, the public improvements in the Project are of benefit to the Project Areas in
that they will improve public facilities and infrastructure within the Project Areas, improve
transportation and traffic circulation along both McDowell Blvd. and Old Redwood Highway
corridor, and facilitate private, investment and revitalization of the Project Areas by alleviating
impediments to circulation and access that deter revitalization; and
WHEREAS, City staff is aware of no other source of funds reasonably available to
undertake the City's share of funding for the public improvements, as the only other source
available for such purpose would be City general fund revenues which are committed for the
provision of essential services such as police and fire services; and
WHEREAS, payment of funds for the public improvements will assist in the elimination
of blighting conditions in the Project Areas in that they will improve public facilities and
infrastructure within the Project Areas, improve transportation and traffic circulation along both
McDowell Blvd. and Old Redwood Highway corridor, and facilitate redevelopment of the
Project Areas by alleviating impediments to circulation and access that deter revitalization.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Petaluma as follows;
1. Preparation of a PSR and an environmental document for the Rainier Avenue Cross Town
Connector Project C00501204 (independent element 2) is approved.
2. Continue to pursue approval of the PSR for the Rainier Avenue Interchange Project
separately and concurrently with the PSR for the Rainier Avenue Cross Town Connector
Proj ect.
3. Based upon the foregoing recitals, which are declared to be true and correct and hereby
incorporated herein as findings of the Petaluma City Council, the City Council finds in
accordance with California Health and Safety Code section 33445 and other applicable law
that (i) the expenditure of tax increment funds to undertake the public improvements and the
Project as set forth in this Resolution and the Implementation Plan will be of benefit to the
Project Areas, (ii) no other reasonable means of financing the public improvements and the
Project is reasonably available, (iii) completion of the public improvements and the Project
will assist in the elimination of blighting conditions in the Project Areas; and (iv) completion
of the public improvements and the Project is consistent with the Implementation Plan
adopted for the Project Areas.
Resolution No, 2010-009 N.C.S.
Page 3
4. The, City Council hereby consents to contribution of $3M from PCDC to account 5530 -
Merged Project Area -C00501204 (as scheduled in Exhibit A, attached to this resolution and
incorporated herein by reference) for the Rainier Avenue Cross Town Connecter Project.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: 1 hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 4'h day of January,
2010, by the following vote:
AYES: Barrett, Vice Mayor Glass, Harris, Healy, Rabbitt, Ren6e, Mayor Torliatt
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
City Clerk
Resolution No, 2010-009 N,C.S.
Page 4
EXHIBIT A
Rainier Avenue Cross Town Connector and Undercrossing of US 101
Project C00601204
Estimated Time
Preli Inary Pro'ect_Cost Estimate
Schedule.
Est'd.
Est'd. FY
Dollars
When
Cost Est. ($000)
Needed
Dollars
Task
$000
Needed
FY -FY
Project Study Report
PSR
80
none
09-10
01/20010 — 04/20010
Project Approval and
Environmental
Document PA&ED
880
none
09-10
0112010 — 06/2011
Incorporation of the
Rainier Avenue
Undercrossing
Structure into the
Plans, Specifications,
and Estimate (PS&E)
for MSN C-2 Project
498
none
09/10
01/2010 —12/2011
Total Project Cost
$1,449
1 $1,449
(` As of,July 1, 2009
Funds Available
_ Funds budgeted—� 3,000
Allocated and encumbered PCDC Fund 1,330
Funds available 1,670
Total cost to prepare the PSR,
Environmental Document and design of
the undercrossing structure for MSN C-2 $ 1,449
Total Project Cost $2;778
Resolution No. 2010-009 N.C.S. Page 5
is
RESOLUTION NO, 2010-02 EXHIBIT F,
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
AUTHORIZING THE EXPENDITURE OF TAX.INCREMENT FUNDS FOR THE RAINIER CROSS-
TOWN CONNECTOR PROJECT C00501204, AND ADOPTING FINDINGS REQUIRED BY
HEALTH AND SAFETY CODE SECTION 33445
WHEREAS, Sonoma County Transportation Authority (SCTA) will be entering into- an
agreement with a consultant to prepare the plans, specifications and construction estimate for
the Marin Sonoma Narrows C-2 HOV Widening Project (MSN C-2 Project) through Petaluma; and,
WHEREAS, the Rainier Avenue Interchange/Cross Town Connector and Undercrossing of
US 101 is within the limits of the MSN C-2 Project; and,
WHEREAS, the Rainier Avenue Interchange/Cross Town Connector and Undercrossing of
US 101 Project Study Report is still under review by Caltrans and may not be approved in time to
incorporate the Project's undercrossing structure into the design of the MSN C-2; and,
WHEREAS, it is recognized that the Rainier Avenue Interchange/Cross Town Connector
and Undercrossing of US 101 Project is in the City of Petaluma's General Plan, and that design
and construction of the larger project can be split into two independent elements (Interchange,
independent element 1, and Cross Town Connector, including undercrossing of US 101,
independent element -2) and still meet the intent of the General Plan; and,
WHEREAS, Caltrans has stated their support for the Rainier Avenue Cross Town Connector
Project (element 2) ("the Project"), and staff anticipates a letter of concurrence by the time City
Council convenes; and,
WHEREAS, Caltrans, Sonoma County Transportation Authority (SCTA), and the City agree
that by proceeding in a timely fashion with a Project Study Report (PSR) and environmental
document for the Project as an independent element (2), the design of the undercrossing
structure can be incorporated into SCTA's design of the MSN C-2 Project; and,
WHEREAS, incorporation of the undercrossing structure component concurrently into the
design of SCTA's MSN C-2 Project will result in earlier receipt of project benefits, cost efficiencies,
reduction of traffic disruption and shorter construction duration: and,
WHEREAS, California Health and Safety Code Section 33445 provides that redevelopment
agencies may, with the consent of the legislative body, pay all or part of the value of land for
and the cost of the installation and construction of any building, facility, structure, or other
PCDC Resolution No. 2010-02 Page I
improvements that are publicly owned either within or without the project area, subject to
certain specified findings being made; and,
WHEREAS, the Project is funded from $3M City/PCDC; and,
WHEREAS, before the PCDC may commit funds for publicly owned improvements, the
consent of the legislative body must be given and the following findings must be made in
accordance with California Health and Safety Code Section 33445:
1. That the improvements are of benefit to the project area or the immediate
neighborhood in which the project is located;
2. That no other reasonable means of financing the improvements is available to
the community; and
3. That the payment of funds for the cost of the improvements will assist in the
elimination of one or more blighting condition inside the project area, and will be
consistent with the implementation plan adopted by the redevelopment
agency; and,
WHEREAS, by Resolution No, 2010-008 N.C.S. adopted January 4, 2010, the City Council of
the City of Petaluma has adopted findings concerning the Project under California Health and
Safety Code Section 33445 and consented to use of PCDC funds for the Project,. and,
WHEREAS, the Petaluma Community Development Commission ("PCDC") f=ive -Year
Implementation Plan ("Implementation Plan") for the Central Business District ("CBD") and
Petaluma Community Development ("PCD") areas (collectively, the "Project Areas"), approved
by the PCDC on June 11, 2007, provides for the transfer of certain specified tax increment funds
for the purpose of funding roadway reconstruction and related improvements as more
particularly described in the Implementation Plan, including the Project; and,
WHEREAS, the public improvements in the Project are of benefit to the Project Areas in
that they will improve public facilities and infrastructure within the Project Areas, improve
transportation and traffic circulation along both McDowell Blvd. and Old Redwood Highway
corridor, and facilitate private investment and revitalization of the Project Areas by alleviating
Impediments to circulation and access that deter revitalization; and,
WHEREAS, City staff is aware of no other source of funds reasonably avdilable to
undertake the City's share of funding for the public improvements, as the only other source
available for such purpose would be City general fund revenues which are committed for the
provision of essential services such as police and fire services; and,
WHEREAS, payment of funds for the public improvements will assist in the elimination of
blighting conditions in the Project Areas in that they will improve public facilities and
infrastructure within the Project Areas, improve transportation and traffic circulation along both
PCDC Resolution No. 2010-02 Page 2
-J
McDowell Blvd. and Old Redwood Highway corridor, and facilitate redevelopment of the
Project Areas by alleviating impediments to circulation. and access that deter revitalization.
NOW, THEREFORE, BE IT RESOLVED, by the Board of the Petaluma Community
Development Commission as follows:
1. Based upon the foregoing recitals, which are declared to be true and correct and
hereby incorporated herein as findings of the Petaluma Community Development
Commission Board, the Board finds in accordance with California Health and Safety
Code section 33445 and other applicable law that (i) the expenditure of tax increment
funds to undertake the public improvements and the Project as set forth in this Resolution
and the Implementation Plan will be of benefit to the Project Areas, (ii) no other
reasonable means of financing the public improvements and the Project is reasonably
available, (iii) completion of the public improvements and the Project will assist in the
elimination of blighting conditions in the Project Areas; and (iv) completion of the public
improvements and the Project is consistent with the Implementation Pian adopted for
the Project Areas,
2. The Petaluma Community Development Commission Board hereby authorizes
contribution of $3M from PCDC to account 5530 -Merged Project Area -C00501204 (as
scheduled in Exhibit A, attached to this resolution and incorporbted herein by reference)
for the Rainier Avenue Cross Town Connecter Project,
ADOPTED this 41h day of January, 2010, by the following vote:
Commissidner
Aye
No
Absent
Abstain
Barrett
X
Vice Chair Glass
X
Harris
X
Healy
X
Rabbitt
X
Renee
X
Chair Torliatt
X ('1
12
Pamela(Torliatt, Chair
PCDC Resolution No. 2010-02
Page 3
ATTEST:
Claire Cooper, CMC, Recording Secretary
APPROVED T F M:
Eric Danly, Genera ounsel
PCDC Resolution No. 2010.02 Page 4
EXHIBIT A TO PCDC RESOLUTION 2010-01
Rainier Avenue Cross Town Connector and Undercrossing of US 101 Project C00601204
Estimated Time
Preli inary Project Cost Estimate
Schedule
Est'd.
Est'd. FY
Dollars
When
Cost Est. ($000)
Needed
Dollars
Task
$000
Needed
FY -FY
Project Study Report
PSR
80
none
09-10
01/20010 — 04/20010
Project Approval and
Environmental
Document PA&ED
880
none
09-10
01/2010-06/2011
Incorporation of the
Rainier Avenue
Undercrossing
Structure into the
Plans, Specifications,
and Estimate (PS&E)
for MSN C-2 Project
498node
09/10
01/2010 —12/2011
Total Project Cost
$1,449
$1,449
As of July 1,2009
Funds Available ($000)
Funds budgeted 3,000
Allocated and encumbered PCDC Fund 1,330
Funds available 1,670
Total cost to prepare the PSR,
Environmental Document and design of
the urldercrossing structure for MSN C_2 _$1,449
Total Project Cost $2,779
PCDC Resolution No. 2010-02 Page 5