HomeMy WebLinkAbout4.12 - 2334 Amendment to Acquisition Agreement for Dubl
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STAFF REPORT
CITY COUNCIL
DATE: December 4, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Amendment to the Acquisition Agreement for Community Facilities District
No. 2015-1 (Dublin Crossing)
Prepared by: Lauren Quint, Assistant City Attorney
EXECUTIVE SUMMARY:
The City Council will consider an amendment to the Acquisition Agreement for
Community Facilities District No. 2015-1 (Dublin Crossing). The purpose of the
amendment is to include additional City-imposed impact fees as authorized fees and to
revise the competitive bidding requirement for authorized facilities.
STAFF RECOMMENDATION:
Adopt the Resolution Approving an Amendment to the Acquisition Agreement for
Community Facilities District No. 2015-1 (Dublin Crossing).
FINANCIAL IMPACT:
None.
DESCRIPTION:
On July 18, 2017, the City Council approved the Acquisition Agreement between the
City and Dublin Crossing, LLC, for Community Facilities District No. 2015-1 (Dublin
Crossing) (Attachment 3). The Acquisition Agreement prescribes the terms and
conditions under which the Developer of the Boulevard Project, Dublin Crossing, LLC,
or affiliated parties, may request disbursement of bond proceeds or available special tax
proceeds to pay the acquisition price of authorized public capital facilities or to
reimburse the Developer or affiliated parties for authorized capital facility impact fees
paid to the City, Dublin San Ramon Services District (DSRSD), or the Zone 7 Water
Agency (Zone 7). Under the agreement, disbursement requests are submitted to, and
must be approved by, the Director of Public Works prior to disbursement of any
requested amount by the Fiscal Agent (which is the party that holds the bond proceeds
and excess special tax proceeds on behalf of the City).
To date, the Developer has submitted nine payment requests. All payment requests
have been for authorized fees paid by the Developer. The authorized fees have
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included City-imposed impact fees, DSRSD impact fees, and Zone 7 impact fees.
There have been no payment requests for authorized facilities; however, it is anticipated
that the Developer will submit their first request for authorized facilities in the next few
months. The authorized facilities will include backbone public infrastructure
improvements constructed in the Phase 1 area of the Boulevard project.
Authorized Fees
In accordance with the Acquisition Agreement, the Developer has submitted nine
payment requests for authorized fees for a total of $16,6 78,857.44. The Director of
Public Works has reviewed the requests and approved reimbursement of
$15,647,771.83. The $1,031,085.61 difference between requested payment and
approved reimbursement represents Developer-paid fees that are not explicitly listed as
authorized fees in the Acquisition Agreement. The specific fees for which
reimbursement was denied are: Civic Center, Library, and Aquatic Center components
of the City-imposed Public Facilities Fee; Tri-Valley Transportation Development Fee;
and City-imposed Noise Mitigation Fees.
The Developer has requested, and Staff supports, an Amendment to the Acquisition
Agreement to include the Civic Center, Library, and Aquatic Center components of the
Public Facilities Fee as authorized fees that can be fu nded by Community Facilities
District bond proceeds or special tax proceeds.
Authorized Facilities
Community Facilities District No. 2015-1 (Dublin Crossing) was established for financing
both authorized public facilities and authorized fees. Authorized facilities include public
facilities and infrastructure, including but not limited to: streets, parks, storm drains,
landscaping, water mains, and sewer mains. The Acquisition Agreement details the
requirements the Developer must follow in order to be reimbursed for the construction of
authorized public facilities.
The Developer has requested an Amendment to the Acquisition Agreement to provide
clarification as to the reimbursable costs for project construction and to flexibility in the
requirements for soliciting at least three competitive bids for each contract for
construction of authorized facilities.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Resolution Approving an Amendment to the Acquisition Agreement for CFD No 2015-
1
2. Exhibit A to Resolution - Amendment to Acquisition Agreement for CFD No. 2015-1
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3. Acquisition Agreement for CFD 2015-1 Dublin Crossing
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RESOLUTION NO. __-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
* * * * * * * * *
APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO THE
ACQUISITION AGREEMENT BETWEEN
THE CITY OF DUBLIN AND DUBLIN CROSSING, LLC
WHEREAS, the City formed Community Facilities District No. 2015-1 (Dublin Crossing),
City of Dublin, County of Alameda, State of California (the “CFD”) for the purpose of providing
financing for certain authorized public facilities and certain authorized capital facility fees
(together, the improvements and the impact fees are referred to herein as the “Authorized
Facilities and Authorized Fees”) being constructed and installed by or paid by Dublin Crossing,
LLC (the “Developer”), pertaining to a development project initially known as “Dublin Crossing”
and now renamed “Boulevard;” and
WHEREAS, the City and Developer executed that certain Acquisition Agreement between
the City of Dublin and Dublin Crossing, LLC on July 18, 2017 , which set forth the list of Authorized
Facilities and Authorized Fees and provided a requisition procedure by which the Developer could
request reimbursement from bond proceeds and/or CFD special tax proceeds for the cost of
Authorized Facilities and Authorized Fees; and
WHEREAS, the City in 2017 issued CFD bonds and contemplates issuing additional bonds
for the CFD in 2018 and thereafter, the proceeds of which are available for reimbursement and
acquisition of additional infrastructure improvements; and
WHEREAS, the City and Developer now desire to amend the Acquisition Agreement to
amend the requisition process and the facilities and fees that may be reimbursed under the
Acquisition Agreement;
WHEREAS, City staff and Developer have negotiated the amendment to the Acquisition
Agreement (the “Amendment”), the form of which is attached as Exhibit A to this Resolution and
incorporated herein by this reference.
NOW THEREFORE, the City Council of the City of Dublin does RESOLVE as follows:
1. The above recitals are true and are incorporated into this Resolution.
2. The Amendment to the Acquisition Agreement between the City of Dublin and Dublin
Crossing LLC, substantially in the form attached as Exhibit A, is hereby approved.
3. The City Manager is authorized and directed to execute the Amendment on behalf of
the City, with such changes as may be approved by the City Attorney or by Bond C ounsel for the
CFD bonds, and to execute all other documents and take all other actions necessary to carry out
the intent of this Resolution.
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PASSED, APPROVED AND ADOPTED this 4th day of December 2018, by the following
vote:
AYES:
NOES:
ABSENT:
__________________________
Mayor
ATTEST:
___________________________
City Clerk
3082359.1
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FIRST AMENDMENT TO
ACQUISITION AGREEMENT
Relating to:
City of Dublin
Community Facilities District No. 2015-1
(Dublin Crossing)
This First Amendment to Acquisition Agreement (this “First Amendment”) is entered into as
of the ___ day of ____________, 2018 by and between the CITY OF DUBLIN, a municipal
corporation organized under the State of California (the “City”), and DUBLIN CROSSING, LLC, a
Delaware limited liability company (the “Developer”). The City and the Developer are collectively
referred to herein as the “Parties.”
WHEREAS, the City and the Developer entered into that certain Acquisition Agreement
dated as of July 18, 2017 (the “2017 Agreement”) providing for the acquisition of certain
improvements by the City of Dublin Community Facilities District No. 2015-1 (Dublin Crossing) (the
“CFD”); and
WHEREAS, the City and the Developer desire to modify the provisions of the Payment
Request form attached as “Exhibit B” to the 2017 Agreement as it relates to documentation
necessary for reimbursement to Developer of costs of the Authorized Facilities (as defined in the
2017 Agreement) from Funding Sources (as defined in the 2017 Agreement); and
WHEREAS, the City and the Developer desire to make certain other amendments to the
2017 Agreement and do hereby amend and supplement the 2017 Agreement pursuant to the
terms of this First Amendment.
NOW, THEREFORE, in consideration of the preceding recitals and the mutual covenants
hereinafter contained, the Parties agree as follows:
Section 1. The defined term “Actual Cost” is amended as follows (strike-through is
delete, underline is addition:
“Actual Cost” means, with respect to an Authorized Facility or a Discrete Component, an
amount equal to the sum of (a) the Developer’s actual, reasonable cost of constructing such
Authorized Facility or Discrete Component, including labor, material, and equipment costs, (b)
the Developer’s actual, reasonable cost of preparing the Plans for such Authorized Facility or
Discrete Component, (c) the Developer’s actual, reasonable cost of environmental evaluations
required in the City’s reasonable determination specifically for such Authorized Facility or
Discrete Component, (d) the amount of the fees actually paid by the Developer to governmental
agencies in order to obtain permits, licenses, or other necessary governmental approvals for
such Authorized Facility or Discrete Component, (e) the amount of 9.5% of the amount
determined pursuant to subdivision (a) above for construction management services, (f) the
Developer’s actual, reasonable cost for professional services directly related to the construction
and installation of such Authorized Facility or Discrete Component, including engineering,
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inspection, construction staking, materials testing, and similar professional services, (g) the
Developer’s actual, reasonable cost of any title insurance, escrow fees or costs, or like expenses
incurred with respect to transfer of ownership of any such Authorized Facility or Discrete
Component, and (h) the Developer’s actual, reasonable cost of any real property or interest
therein acquired from a party other than the Developer, which real property or interest therein is
either necessary for the construction of such Authorized Facility or Discrete Component (e.g.,
temporary construction easements, haul roads, etc.) or is required to be conveyed with such
Authorized Facility or Discrete Component in order to convey acceptable title thereto to the City
or other applicable public entity or public utility, as specified in a Payment Request that has been
reviewed and approved by the Director of Public Works or his designee who will be responsible
for administering the acquisition of the Authorized Facility or Discrete Component; provided,
however, that no item of cost relating to an Authorized Facility or Discrete Component shall be
included in more than one category of cost under this definition; and provided further, however,
that each item of cost shall be chargeable to the capital account for the Authorized Facility under
generally accepted accounting principles.
Section 2. The second paragraph of Section 5(d) is replaced in its entirety with the
following:
“Notwithstanding the foregoing, the Developer shall solicit at least three (3) competitive
bids for each contract for construction of Authorized Facilities and award all contracts for
construction of the Authorized Facilities (including any Discrete Components thereof), in each
case consistent with the Plans and the Conditions of Approval, to the lowest responsible bidder
among the competitive bids received. If the nature of the Authorized Facility is such that there are
not three responsible contractors from which to solicit bids, then the Developer may solicit less
than three competitive bids for the construction of such Authorized Facility. For purposes of
clarification, (i) the Developer’s obligation is only to solicit the required number of bids under this
Acquisition Agreement; it is not required that the Developer receive a minimum number of
responses from contractors; (ii) there shall be no bidding requirements for materials or supplies;
and (iii) the bidding procedure described in this Acquisition Agreement shall prevail over any City
policies to the contrary.”
Section 3. Exhibit A to the 2017 Agreement (Authorized Facilities and Authorized
Fees) is replaced in its entirety with the listing attached hereto as New Exhibit A. To the extent
any facilities and/or fees listed on New Exhibit A are in addition to those listed in the Authorized
CFD Public Improvements adopted for the CFD, this First Amendment constitutes a written
agreement as provided in the last paragraph of such list of Authorized CFD Public Improvements,
and sets forth the additional improvements or impact fees which are eligible for financing
by the CFD.
Section 4. Exhibit B to the 2017 Agreement (Form of Payment Request) is replaced in
its entirety with the form attached hereto as New Exhibit B.
Section 5. For purposes of executing and delivering the Payment Request in the form
of Exhibit B, the Developer hereby appoints Gregory Glenn and Joshua Roden, both of
Brookfield Bay Area Holdings, LLC, to serve as authorized signatories of Dublin Crossing, LLC,
and either person, acting alone, may execute and deliver a Payment Request on behalf of the
Developer, and such execution shall be deemed the execution by the Developer.
Section 6. Except as set forth in this First Amendment, the terms and conditions of
the 2017 Agreement shall remain unchanged and in full force and effect.
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Section 7. This First Amendment may be executed in counterparts, each of which
shall be deemed an original.
Section 8. The provisions of this First Amendment shall be governed by the laws of
the State of California.
Section 9. Each Party represents and warrants to the other that the Agreement has
not been amended (except as modified by this First Amendment), constitutes the entire
agreement between the Parties, and is presently in full force and effect, with no uncured defaults
and with no acts or omissions having occurred which, but for the passing of time or giving of
notice, would be a default thereunder.
SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the Parties have caused this First Amendment to be signed as
of the date first above written.
CITY OF DUBLIN DUBLIN CROSSING, LLC,
a Delaware limited liability company
By:________________________________ By: BrookCal Dublin LLC,
City Manager a Delaware limited liability company
Its: Member
ATTEST:
By: ___________________________
(Signature)
_________________________________
City Clerk ___________________________
(Print Name & Title)
APPROVED AS TO FORM: By: ___________________________
(Signature)
_________________________________ ___________________________
City Attorney (Print Name & Title)
By: SPIC Dublin LLC,
a Delaware limited liability company
Its: Member
By: Standard Pacific Investment Corp.,
A Delaware corporation
Its: Member
By: _______________________
(Signature)
_______________________
(Print Name & Title)
By: ________________________
(Signature)
________________________
(Print Name & Title)
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NEW EXHIBIT A
AUTHORIZED FACILITIES AND AUTHORIZED FEES
A. City Public Capital Improvements: The public capital improvements that are required for the
development of the Project and that are authorized to be financed under this Agreement are (i) the
following public capital improvements of the City, and (ii) such other public capital improvements
of the City not listed below that the City Manager and the Developer mutually agree in a written
agreement are eligible as authorized facilities for the CFD.
1. Backbone Storm Drainage
2. Backbone Street Improvements
3. Master Landscaping, Fencing and Signage on Public Property, Including
Public Easements and Rights-of-Way
B. City-Imposed Impact Fees: The City-imposed impact fees that are required for the
development of the Project and that are authorized to be financed under this Agreement are (i) the
following City-imposed impact fees, and (ii) such other public City-imposed impact fees not listed
below that the City Manager and the Developer mutually agree in a written agreement are eligible
as authorized facilities for the CFD.
1. Fire Impact Fees
2. Freeway Interchange Fees
3. Public Art In-Lieu Fees
4. Residential Traffic Impact Fees – Eastern Dublin Fee
5. Development Agreement Fees:
a. ACSPA Contribution
b. Iron Horse Trail Bridge Contribution
c. Park Construction Payment
6. Civic Center Fee
7. Library Impact Fee
8. Aquatic Center Impact Fee.
C. Dublin San Ramon Services District (DSRSD): The public capital improvements and impact
fees of DSRSD that are required for the development of the Project and that are authorized to be
financed under this Agreement are (i) the following public capital improvements and impact fees of
DSRSD, and (ii) such other public capital improvements and impact fees of DSRSD not listed
below that the City Manager and the Developer mutually agree in a written agreement are eligible
as authorized facilities for the CFD.
1. Capital Improvements
a. Backbone Sanitary Sewer
A-2
b. Backbone Domestic Water
c. Backbone Reclaimed Water
2. DSRSD Impact Fees
a. Water System Connection Fees
b. Water Meter Assembly Fees
c. Wastewater Impact Fees
D. Zone 7: The public capital improvements and impact fees of Zone 7 that are required for the
development of the Project and that are authorized to be financed under this Agreement are (i) the
following public capital improvements and impact fees of Zone 7, and (ii) such other public capital
improvements and impact fees of Zone 7 not listed below that the City Manager and the Developer
mutually agree in a written agreement are eligible as authorized facilities for the CFD.
1. Capital Improvements
a. Backbone Storm Drainage
2. Zone 7 Impact Fees
a. Water Connection Fees
b. Drainage Assessment Fees (Impervious Surface)
B-1
NEW EXHIBIT B
FORM OF PAYMENT REQUEST
City of Dublin
Community Facilities District No. 2015-1 (Dublin Crossing)
Pursuant to the Acquisition Agreement, dated as of July 18, 2017 (the “Acquisition
Agreement”), by and between the City of Dublin (the “City”) and Dublin Crossing, LLC (the
“Developer”), the Developer hereby requests (a) payment of the Purchase Price of the
Authorized Facilities and/or the Discrete Components described in Attachment 1 hereto or
(b) reimbursement for the Authorized Fees described in Attachment 1 hereto. Capitalized terms
not otherwise defined herein shall have the meanings ascribed thereto in the Acquisition
Agreement.
In connection with this Payment Request, the undersigned hereby represents and
warrants to the City as follows:
For Authorized Facilities or Discrete Components:
1. The undersigned is an authorized representative of the Developer, qualified to
execute this request for payment on behalf of the Developer and knowledgeable as to the
matters set forth herein.
2. The Developer has submitted or submits herewith to the Director of Public
Works as-built drawings or similar Plans for each of the Authorized Facilities and/or Discrete
Components described in Attachment 1, and such drawings or Plans, as applicable, are true,
correct and complete representations of the Authorized Facilities and/or Discrete Components
listed in Attachment 1.
3. Each of the Authorized Facilities and Discrete Components described in
Attachment 1 has been bid in accordance with the requirements of this Agreement, has been
constructed in accordance with the Plans therefor and in accordance with applicable City
standards, and has otherwise satisfied the provisions of the Acquisition Agreement, and the
as-built drawings or similar Plans referenced in paragraph 2 above, and none of the
Authorized Facilities or Discrete Components described in Attachment 1 has been the subject
of any prior Payment Request.
4. The Developer has submitted or submits herewith to the Director of Public
Works soils reports and certifications as appropriate with respect to each Authorized Facility
or Discrete Component described in Attachment 1.
5. The true and correct Actual Cost of each of the Authorized Facilities and/or
Discrete Components described in Attachment 1 is set forth in Attachment 1.
6. The Developer has submitted or submits herewith to the Director of Public
Works a copy of each construction contract for each of the Authorized Facilities and/or
Discrete Components described in Attachment 1, a copy of the bid notice for each such
B-2
contract and a copy of each change order applicable to each such contract, together with the
written approval of each such change order by the Director of Public Works of the City.
7. The Developer has submitted or submits herewith to the Director of Public
Works a letter from the Developer evaluating invoices, receipts, worksheets and other
evidence of costs for each of the Authorized Facilities and/or Discrete Components described
in Attachment 1, which are in sufficient detail to allow the Director of Public Works to verify
the Actual Cost of such Authorized Facilities and Discrete Components and, if any of such
invoices, receipts, worksheets or other evidence of costs include costs for facilities other than
such Authorized Facilities and/or Discrete Components , the Developer has submitted or
submits herewith to the Director of Public Works a written description as to how the items and
amounts in such invoices, receipts, worksheets and other evidence of costs have been
allocated among such other Authorized Facilities and/or Discrete Components, together with
evidence that such allocation is appropriate, correct and reasonable.
8. The Developer has submitted or submits herewith to the Director of Public
Works evidence that each of the invoices, receipts, worksheets and other evidence of costs
referred to in the preceding paragraph, has been paid in full, which evidence is in the form of
copies of cancelled checks or such other form as the Director of Public Works of the City has
approved in writing.
9. There has not been filed with or served upon the Developer notice of any
lien, right to lien or attachment upon, or claim affecting the right to receive, the payment of the
Purchase Price for each of the Authorized Facilities and/or Discrete Components described
in Attachment 1 which has not been released or will not be released simultaneously with the
payment of such obligation, other than materialmen’s or mechanics’ liens accruing by
operation of law.
10. The Developer has submitted or submits herewith to the Director of Public
Works copies of unconditional or conditional (providing for release upon payment) lien
releases from all contractors, subcontractors and materialmen for all work with respect to each
of the Authorized Facilities and/or Discrete Components described in Attachment 1.
11. The representations and warranties of the Developer set forth in Section 10(a)
of the Acquisition Agreement are true and correct on and as of the date hereof with the same
force and effect as if made on and as of the date hereof.
12. The Developer represents that it has satisfied the conditions specified in the
Acquisition Agreement for the payment of the Purchase Price of Authorized Facilities or
Discrete Components.
13. The Developer represents and warrants that, as of the date hereof, there is
not present on, under or in any of the Authorized Facilities and/or Discrete Components
described in Attachment 1, or any portion thereof, any hazardous materials, except for (i) any
t ypes or amounts that do not require remediation or mitigation under federal, state or local
laws, ordinances, regulations, rules or decisions, (ii) those that have been remediated or
mitigated in full compliance with applicable federal, state or local laws, ordinances,
regulations, rules or decisions, (iii) those with respect to which ongoing remediation or
mitigation is being performed in full compliance with applicable federal, state or local laws,
ordinances, regulations, rules or decisions, (iv) any types or amounts that do not present a
human health risk or hazard to the public, and (v) if such Authorized Facilities and/or
B-3
Discrete Components described in Attachment 1 were, at the time of commencement of the
acquisition, construction and installation of such Authorized Facilities and/or Discrete
Components, propert y of the City and, from such time of commencement through and
including the date hereof, remained propert y of the City, those hazardous substances that
were present on, under or in such Authorized Facilities and/or Discrete Components at such
time of commencement.
For Authorized Fees:
1. The undersigned is an authorized representative of the Developer, qualified to
execute this request for payment on behalf of the Developer and knowledgeable as to the
matters set forth herein.
2. The identity and amount of the Authorized Fees are described in Attachment 1.
3. The Developer has submitted or submits herewith to the Director of Public Works
evidence that Authorized Fees referred to in the preceding paragraph have been paid in full,
which evidence is in the form of copies of cancelled checks or such other form as the Director
of Public Works has approved in writing.
4. The representations and warranties of the Developer in Section 10(a) of the
Acquisition Agreement are true and correct on and as of the date hereof with the same force
and effect as if made on and as of the date hereof.
5. The Developer represents that it has satisfied the conditions specified in the
Acquisition Agreement for the reimbursement of Authorized Fees by the City.
I hereby declare under penalty of perjury that the above representations and
warranties are true and correct.
DUBLIN CROSSING, LLC,
a Delaware limited liability company
By:________________________________
Name: _____________________________
Title:_______________________________
By:________________________________
Name: _____________________________
Title:_______________________________
B-4
APPROVAL BY THE DIRECTOR OF PUBLIC WORKS
I, the undersigned Director of Public Works of the City of Dublin, hereby certify as
follows:
(i) Dublin Crossing, LLC (the “Developer”), has requested payment of the Purchase
Price of the Authorized Facilities and/or the Discrete Components or reimbursement for the
Authorized Fees described in Attachment 1 hereto. All references hereafter in this certification
to “the Authorized Facilities and/or the Discrete Components” shall be deemed to refer to
those Authorized Facilities and/or Discrete Components or those Authorized Fees described
in Attachment 1 hereto.
(ii) I or persons working under my supervision have confirmed that each of the
Authorized Facilities and/or Discrete Components is complete in accordance with the Plans.
(iii) The Developer has provided me with satisfactory documentation to demonstrate
how Actual Cost for the subject Authorized Facilities and/or Discrete Components was
calculated, to establish that the Authorized Facilities and Discrete Components are consistent
with those presented in the documentation of Actual Cost, and to establish that the
Authorized Fees described in Attachment 1 hereto, if any, have been paid by the Developer.
(iv) The Actual Cost of the Authorized Facilities and Discrete Components and the
amount of Authorized Fees described in Attachment 1 hereto, if any, have been reviewed,
verified and approved by me or persons working under my supervision under the terms
specified in Section 5 of the Acquisition Agreement. As such, Payment of the Purchase Price
of each of the Authorized Facilities and/or Discrete Components and reimbursement to the
Developer for the amount of Authorized Fees described in Attachment 1 hereto is hereby
approved.
Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto
in the Acquisition Agreement, dated as of July 18, 2017 (the “Acquisition Agreement”), by and
between the City of Dublin (the “City”) and the Developer.
Dated: _______________________
__________________________________
Gary Huisingh
Director of Public Works
City of Dublin
B-5
ATTACHMENT 1
Authorized Facility,
Discrete Component
or Authorized Fees
Actual
Cost
Purchase
Price
Total
3082754.1
ACQUISITION AGREEMENT
Relating to:
City of Dublin
Community Facilities District No. 2015-1
(Dublin Crossing)
THIS ACQUISITION AGREEMENT (this "Agreement"), dated as of July 18, 2017, is by
and between the City of Dublin, a municipal corporation and a political subdivision of the State
of California (the “City”), and Dublin Crossing, LLC, a Delaware limited liability company (the
“Developer”).
RECITALS
A. Capitalized terms not otherwise defined in this Agreement shall have the meanings
given to them under the heading “Definitions” herein.
B. The City Council of the City (the “City Council”) has established the City of Dublin
Community Facilities District No. 2015-1 (Dublin Crossing) (the “CFD”) under the Mello-Roos
Community Facilities Act of 1982 for the financing, among other things, of certain authorized
public facilities (the “Authorized Facilities”) and certain authorized capital facility fees (the
“Authorized Fees”) generally described in the Resolution of Formation and described in more
detail in Exhibit A, attached hereto and by this reference incorporated herein.
C. The City and Dublin Crossing Venture LLC, a Delaware limited liability company (the
“Developer’s Predecessor”), entered into that certain Development Agreement, dated
November 19, 2013 (the “Original Development Agreement”), pertaining to implementation of a
development project (the “Project”) on the land described in Exhibit A to the Original
Development Agreement (the “Property”), a portion of which land is presently within the
boundary of the CFD and the balance of which land is designated as “Future Annexation Area”
of the CFD, as shown on the Boundary Map.
D. The Original Development Agreement was amended by the First Amendment,
thereby creating the “Original Development Agreement, as Amended.”
E. The Developer’s Predecessor and the Developer entered into an Assignment and
Assumption of Development Agreement (the “DA Assignment”), pursuant to which the
Developer’s Predecessor assigned and the Developer assumed all of the rights, duties and
obligations of the Developer’s Predecessor under the Original Development Agreement, as
Amended, with the express written approval of the City Manager of the City (the “City Manager”)
as set forth on page 4 of the DA Assignment.
F. The Original Development Agreement, as Amended, was further amended by the
Second Amendment. All references hereafter in this Agreement to the “Development
Agreement” shall be deemed to refer to the Original Development Agreement, as amended by
the First Amendment, the Second Amendment, the Third Amendment, and any future
amendments thereto.
2
G. As recited in Exhibit G of the Development Agreement (“Exhibit G”), the Property is
being acquired in phases from the United States of America, represented by The Department of
the Army (the “Army”), pursuant to an Exchange Agreement, dated March 4, 2011, between the
Developer’s Predecessor and the Army (the “Exchange Agreement”), subject to the terms and
conditions set forth in the Exchange Agreement. The phases are identified in Exhibit G as
Phase 1A, 1B, 2, 3, 4 and 5. Property is to be conveyed in phases upon the completion of
certain improvements by the Developer (as successor to the Developer’s Predecessor). Phase
1A and 1B have heretofore been conveyed and comprise Improvement Area No. 1 of the CFD,
with the subsequent phases comprising the Future Annexation Area. Exhibit G provides that, as
each additional phase is conveyed, it will be annexed into the CFD, with each of Phases 2, 3, 4
and 5 expected to become a new Improvement Area, identified as Improvement Area No. 2
(Phase 2), 3 (Phase 3), 4 (Phase 4) and 5 (Phase 5), respectively. The provisions of Exhibit G
summarized in the foregoing sentence represent the current expectations of the parties, but the
actual assignment of phases to improvement areas may differ from the current expectations.
Upon the annexation of a portion of the Future Annexation Area to the CFD, the
provisions of this Agreement shall extend to the Developer (as said term is defined herein to
include transferees of the Developer) of the annexed portion of the Property without the
necessity of any amendment of this Agreement or the execution of any additional such
agreement pertaining to the annexed portion.
H. The Authorized Facilities and Authorized Fees are necessary to mitigate impacts
arising from development occurring in the CFD, and the City will benefit from a coordinated plan
of design, engineering and construction of the Authorized Facilities and the development of the
Property.
I. The City has determined that it will obtain no advantage from undertaking the
construction of the Authorized Facilities and that the Authorized Facilities may be constructed by
the Developer as if they had been constructed under the direction and supervision, or under the
authority of, the City, by complying with the provisions of this Agreement.
J. As a result of a special election conducted on June 2, 2015, the City has been
authorized to levy a special tax on property within the CFD (the “Special Tax”) and to issue
special tax bonds and other debt obligations (the “Bonds”) in one or more series, which Bonds
shall be payable as to principal and interest from proceeds of the Special Tax, as provided by
the Act.
K. Each series of the Bonds, when issued, will be secured by and will be payable solely
from the proceeds of the Special Tax levied upon the taxable property within a specified
Improvement Area. However, proceeds of the Bonds may be expended to pay the Purchase
Price of Authorized Facilities or Discrete Components or to reimburse for Authorized Fees which
have been paid in accordance with this Agreement irrespective of whether they are situated
within or adjacent to the boundary of that specified Improvement Area.
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DEFINITIONS
Capitalized terms used in this Agreement, in addition to those defined elsewhere in this
Agreement, shall have the following meanings:
“Acceptance Date” means the date upon which the City or other public entity or public
utility accepts fee simple title or an irrevocable offer of dedication of one or more Authorized
Facilities.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Part 1
(commencing with Section 53311) of Division 2 of Title 5 of the California Government Code.
“Actual Cost” means, with respect to an Authorized Facility or a Discrete Component, an
amount equal to the sum of (a) the Developer’s actual, reasonable cost of constructing such
Authorized Facility or Discrete Component, including labor, material, and equipment costs, (b)
the Developer’s actual, reasonable cost of preparing the Plans for such Authorized Facility or
Discrete Component, (c) the Developer’s actual, reasonable cost of environmental evaluations
required in the City’s reasonable determination specifically for such Authorized Facility or
Discrete Component, (d) the amount of the fees actually paid by the Developer to governmental
agencies in order to obtain permits, licenses, or other necessary governmental approvals for
such Authorized Facility or Discrete Component, (e) the Developer’s actual, reasonable cost for
construction management services respecting the construction and installation of any
Authorized Facility or Discrete Component, (f) the Developer’s actual, reasonable cost for
professional services directly related to the construction and installation of such Authorized
Facility or Discrete Component, including engineering, inspection, construction staking,
materials testing, and similar professional services, (g) the Developer’s actual, reasonable cost
of any title insurance, escrow fees or costs, or like expenses incurred with respect to transfer of
ownership of any such Authorized Facility or Discrete Component, and (h) the Developer’s
actual, reasonable cost of any real property or interest therein acquired from a party other than
the Developer, which real property or interest therein is either necessary for the construction of
such Authorized Facility or Discrete Component (e.g., temporary construction easements, haul
roads, etc.) or is required to be conveyed with such Authorized Facility or Discrete Component
in order to convey acceptable title thereto to the City or other applicable public entity or public
utility, as specified in a Payment Request that has been reviewed and approved by the Director
of Public Works or his designee who will be responsible for administering the acquisition of the
Authorized Facility or Discrete Component; provided, however, that no item of cost relating to an
Authorized Facility or Discrete Component shall be included in more than one category of cost
under this definition; and provided further, however, that each item of cost shall be chargeable
to the capital account for the Authorized Facility under generally accepted accounting principles.
“Agreed-Upon Allocation” shall have the meaning ascribed to it in Section 6(e)(vi) herein.
“Agreement” means this Acquisition Agreement, dated as of July 18, 2017, by and
between the City and the Developer.
“Army” means the Department of the Army of the United States of America.
“Authorized Facility” and “Authorized Facilities” mean one or more of the public capital
facilities generally described in the Resolution of Formation, as amended by Resolution No. 93-
17, adopted by the City Council on June 20, 2017, and described in more detail in Exhibit A
hereto.
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“Authorized Fees” means the capital facility fees generally described in the Resolution of
Formation, as amended by Resolution No. 92-17, adopted by the City Council on June 20,
2017, and described in more detail in Exhibit A hereto.
“Bonds” means limited obligation bonds or other debt obligations, whether taxable or tax-
exempt, fixed-rate or variable-rate, issued by the City with respect to the CFD the principal of
and interest on which are payable from proceeds of Special Taxes levied upon the taxable
property within a specified Improvement Area.
“Boundary Map” means the boundary map of the CFD containing the matters prescribed
by the Act, approved by Resolution No. 54-15, adopted by the City Council on April 21, 2015,
and recorded on May 4, 2015, in Book 18 of Maps of Assessment and Community Facilities
Districts, at page 61, official records of the County Recorder, as supplemented by Annexation
Map No. 1, approved by Resolution No. 93-17, adopted by the City Council on June 20, 2017,
and recorded on June 26, 2017, in Book 317 of Maps of Assessment and Community Facilities
Districts, at page 60, official records of the County Recorder.
“CFD” means the City of Dublin Community Facilities District No. 2015-1 (Dublin
Crossing) and Improvement Area No. 1, as shown on the Boundary Map; provided that the area
shown on the Boundary Map as “Future Annexation Area” may be annexed to the CFD in
phases from time-to-time in accordance with the Act, and all references herein to the CFD shall
be deemed to include such portions of the Future Annexation Area as have been so annexed,
including any such Improvement Areas designated out of such Future Annexation Area.
“City” means the City of Dublin, California.
“City Council” means the legislative body of the City.
“City Manager” means the person who is the duly appointed and acting City Manager of
the City.
“Conditions of Approval” means the conditions of approvals and mitigation measures
imposed in connection with the granting of the land use entitlements for the development the
Project, and any subdivision improvement, owner participation agreement, development or other
agreement with the City relating to the development of the Project, the installation of the
Authorized Facilities or the payment of Authorized Fees, including but not limited to those set
forth in the Development Agreement.
“Continuing Disclosure Undertaking” means the written instrument to be executed by the
Developer in connection with the issuance of any series of Bonds for an Improvement Area by
which the Developer agrees to provide such information pertaining to the Property in such
Improvement Area, development of the Property in such Improvement Area, and the
Developer’s financing plan for the development of the Property in such Improvement Area, as
shall be prescribed by such instrument, all in furtherance of enabling the City’s bond underwriter
to comply with disclosure obligations imposed upon the bond underwriter under federal
securities laws.
“County Recorder” means the County Recorder of the County of Alameda, State of
California.
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“DA Assignment” means that certain agreement entitled “Assignment and Assumption of
Development Agreement,” entered into between the Developer’s Predecessor and the
Developer, made and effective as of August 28, 2015, and recorded in the official records of the
County Recorder on August 28, 2015, as Document No. 2015239932.
“Developer” means, initially, Dublin Crossing, LLC, and its successors; provided that in
the event that the Developer transfers its rights and obligations respecting any portion of the
Property and the associated Authorized Facilities and/or Authorized Fees, pursuant to and in
compliance with the terms and conditions of Section 20 of the Development Agreement and
pursuant to an assignment and assumption agreement substantially in the form of the DA
Assignment and entered into between the Developer and the transferee and approved in writing
by the City Manager, the term “Developer” as used in this Agreement shall be deemed to
include such transferee to the extent applicable to the Authorized Facilities (or Discrete
Components thereof) and/or Authorized Fees, and the provisions of this Agreement respecting
the financing of Authorized Facilities and/or Authorized Fees shall become applicable to such
transferee, subject to the terms and conditions hereof, except as otherwise provided in the DA
Assignment.
“Developer Allocation” shall have the meaning ascribed to it in Section 6(e)(vi) herein.
“Developer’s Predecessor” means Dublin Crossing Venture LLC, a Delaware limited
liability company.
“Development Agreement” means the Original Development Agreement, as amended by
the First Amendment, the Second Amendment, the Third Amendment, and any further
amendment thereto
“Director of Public Works" means the Public Works Director of the City or such other
official of the City acting in such capacity, or the designee of such official.
"Discrete Component" means a component of an Authorized Facility described in Exhibit
A attached hereto, which is a functional segment of an Authorized Facility costing more than
$1.0 million, that can be separately identified and inspected and that can be the subject of a
Payment Request. Discrete Components do not have to be accepted by the City (or other
applicable public entity or public utility to which ownership will be transferred) as a condition
precedent to the payment of the Purchase Price therefor, but any such payment shall not be
made until the Discrete Component has been constructed in accordance with the Plans therefor,
as determined by the Director of Public Works. Exhibit A may be modified at any time by the
Developer for the purpose of identifying Discrete Components of Authorized Facilities, subject to
the written approval of the Director of Public Works, without City Council approval.
“Exchange Agreement” means the agreement dated March 4, 2011, between the
Developer’s Predecessor and the Army.
“First Amendment” means that certain agreement entered into between the City and the
Developer’s Predecessor, dated June 16, 2015, and recorded in the official records of the
County Recorder on July 22, 2015, as Document No. 2015202606, which amends the Original
Development Agreement.
“Fiscal Agent” means the bank, trust company or other authorized fiduciary serving as
Fiscal Agent under the applicable Fiscal Agent Agreement.
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"Fiscal Agent Agreement" means an indenture, fiscal agent agreement, resolution or
other instrument under which one or more series of Bonds for an Improvement Area are issued,
as such Fiscal Agent Agreement may be supplemented from time to time to accommodate
additional bond issuances for the applicable Improvement Area or as it may be amended from
time to time.
“Fiscal Agent Agreements” means the total set of individual Fiscal Agent Agreements
pertaining to all of the Improvement Areas of the CFD.
“Funding Sources” means, collectively, (A) Net Proceeds, (B) proceeds of Special Taxes
levied and collected prior to the issuance of Bonds for an Improvement Area and not needed for
the payment of the principal of or the interest on Bonds, (C) proceeds of prepayments of Special
Taxes collected prior to the issuance of the first series of Bonds for an Improvement Area
pursuant to the applicable Rate and Method, (D) proceeds of prepayments of Special Taxes
otherwise allocated for Authorized Facilities or Authorized Fees under the applicable Rate and
Method, as further described in Section 3 herein, and (E) proceeds of Special Taxes collected to
directly finance Authorized Facilities and/or Authorized Fees under the applicable Rate and
Method and which are allocated to fund such Authorized Facilities and/or Authorized Fees in the
discretion of the City, as further described in Section 4 herein.
“Future Annexation Area” means that portion of the Property which is designated as
Future Annexation Area on the Boundary Map and which is intended to be annexed into the
CFD in the future, whether as land added to an existing Improvement Area or as land
establishing a new Improvement Area.
“Improvement Area” shall mean that portion of the area within the CFD boundary
designated as a separate improvement area, as provided under the Act, Improvement Area No.
1 having been shown on the Boundary Map to include all of the Property currently within the
CFD, and with intention to (a) annex additional portions of the Property to Improvement Area
No. 1 and (b) establish Improvement Areas No. 2 through 5, inclusive, to include portions of the
Property designated as “Future Annexation Area” on the Boundary Map and intended to be
annexed in the future.
“Improvement Area No. 1” means Improvement Area No. 1 of the CFD.
“Improvement Fund” means the fund to be established under each Fiscal Agent
Agreement, whether by that name or a similar name (such as “Construction Fund”), into which
the monies from the Funding Sources are to be deposited and from which the monies from the
Funding Sources and the investment earnings thereon are to be disbursed to provide for the
financing of Authorized Facilities, Discrete Components or Authorized Fees. To facilitate the
tracking of expenditures for federal tax purposes, the Improvement Fund shall consist of
separate subaccounts for the deposit of (i) Net Proceeds and (ii) all other Funding Sources.
“Improvement Funds” means, collectively, the total set of individual Improvement Funds
established under each of the individual Fiscal Agent Agreements.
“Land” shall have the meaning ascribed to it in Section 7(a) herein.
“Net Proceeds” means the proceeds of sale of any series of Bonds prescribed for
deposit into the applicable Improvement Fund after first depositing the prescribed portion of
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such proceeds of sale into the applicable reserve fund, administrative expense fund or any like
fund or account established under the applicable Fiscal Agent Agreement for purposes other
than financing of Authorized Facilities, Discrete Components or Authorized Fees.
“Original Development Agreement” means that certain agreement entitled “Development
Agreement,” dated November 19, 2013, between the City and the Developer’s Predecessor,
and recorded in the official records of the County Recorder on June 4, 2014, as Document No.
2014134795.
“Original Development Agreement, as Amended” means the Original Agreement, as
amended by the First Amendment.
“Payment Request” means a written request submitted to the City by the Developer in
substantially the form and containing the information prescribed by Exhibit B to this Agreement.
“Plans” means the plans, specifications, schedules and related construction contracts for
the Authorized Facilities and/or any Discrete Components thereof approved pursuant to the
applicable standards of the City or other public entity or public utility that will own, operate or
maintain a prescribed portion of the Authorized Facilities when completed and acquired.
“Project” means the land development project which the Developer intends to implement
on the Property in phases as described in the Development Agreement.
“Property” means the land described in Exhibit A to the Original Development
Agreement.
“Purchase Price” means the amount payable by the City to the Developer for an
Authorized Facility and/or any Discrete Component thereof determined in accordance with this
Agreement.
“Rate and Method” means the rate and method of apportionment of the Special Tax,
established pursuant to the Act and pertaining to that portion of the Property situated within a
given Improvement Area, as set forth in Exhibits B through F, inclusive, of the Resolution of
Formation, said Exhibits B through F corresponding to the proposed Improvement Areas No. 1
through 5, respectively.
“Remainder Taxes” means, for an Improvement Area, the amount of Special Taxes
levied and collected for a given Fiscal Year, determined as of September 15 following the June
30 conclusion of the Fiscal Year, which exceeds the total of the amounts included in the Special
Tax Requirement for such Fiscal Year on account of (a) Bond principal and/or interest payable
during the calendar year which began during such Fiscal Year, (b) replenishing the reserve fund
for the Bonds as required by the applicable Fiscal Agent Agreement and (c) administrative
expenses.
“Remaining Facilities Amount” means the amount of prepaid special taxes received by
the City as part of a prepayment of Special Taxes on account of Remaining Facilities Costs, as
determined in accordance with Section I of the applicable Rate and Method.
“Resolution of Formation” means Resolution No. 96-15, adopted by the City Council on
June 2, 2015, by which the CFD was established.
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“Second Amendment” means that certain agreement entered into between the City and
the Developer, made and entered into on February 9, 2016, and recorded in the official records
of the County Recorder on March 8, 2016, as Document No. 2016056821, which amends the
Original Development Agreement, as Amended.
“Special Tax” shall have the meaning ascribed to it in Recital J herein.
“Special Tax Requirement” shall have the meaning ascribed to it in the applicable Rate
and Method.
“State” means the State of California.
“Transferee” shall have the meaning ascribed to it in Section 10(b)(iv) herein.
AGREEMENT
In consideration of the mutual promises and covenants set forth herein, and for other
valuable consideration, the sufficiency of which is hereby acknowledged, the City and the
Developer agree as follows:
1. Recitals; Applicability.
a. Recitals. The City and the Developer represent and warrant, each to the other,
that the above recitals, as applicable to each, are true and correct.
b. Applicability. This Agreement applies to the CFD, including Improvement Area
No. 1 and, upon the annexation of a portion of the Future Annexation Area to the CFD, to the
annexed portion of the Future Annexation Area (and any Improvement Area in which the
annexed property is designated), without the necessity of any amendment of this Agreement or
the execution of any additional such agreement pertaining to the annexed portion.
2. Sale of Bonds.
a. City Proceedings. From time to time and in consultation with the Developer, the
City shall conduct all necessary proceedings under the Act for the issuance, sale and delivery of
one or more series of Bonds; provided that such proceedings and the principal amount, rates,
terms and conditions and timing of the sale of each series of Bonds shall be in all respects
subject to the final approval of the City Council. Nothing herein shall be construed as modifying
the provisions of the Development Agreement in general and of Exhibit G to the Development
Agreement in particular with respect to the establishment of the CFD, the issuance, sale and
delivery of Bonds and the application of the Net Proceeds and the proceeds of Special Taxes to
finance Authorized Facilities, Discrete Components or Authorized Fees. In the event of any
conflict between the provisions of the Development Agreement (including Exhibit G thereto) and
the provisions of this Agreement, the provisions of the Development Agreement shall prevail
and govern.
b. Principal Amount. The maximum principal amount of the Bonds that is
authorized for the CFD is $150,000,000. The City can provide no assurances that it will be able
to issue or sell the entire authorized principal amount of the Bonds.
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3. Use of Financing Proceeds.
a. Prepayments. The proceeds of any prepayments of Special Taxes shall be
administered as provided in the applicable Rate and Method. Without limiting the generality of
the foregoing, the portion of any prepayment representing the “Remaining Facilities Amount”
shall be deposited in the Improvement Fund for payment when due under this Agreement of the
costs of acquisition of Authorized Facilities and Discrete Components thereof or for the
financing of Authorized Fees. In the event that proceeds of prepayments of Special Taxes are
received by the City prior to issuance of Bonds, the City shall establish and maintain an
Improvement Fund for the applicable Improvement Area. Following issuance of Bonds, the City
shall transfer any balance in the Improvement Fund to the Fiscal Agent for deposit into the
Improvement Fund to be established pursuant to the applicable Fiscal Agent Agreement.
Amounts deposited into any Improvement Fund held by the City prior to Bond issuance
shall be withdrawn therefrom, in accordance with the provisions of this Agreement and the
Development Agreement, for payment of any amounts payable to the Developer (as defined
herein to include transferees of the Developer) under the terms of this Agreement on account of
costs of acquisition of Authorized Facilities and Discrete Components thereof or for the
financing of Authorized Fees.
b. Bond Proceeds. The proceeds of each series of Bonds shall be deposited, held,
invested, reinvested and disbursed as provided in the applicable Fiscal Agent Agreement. The
Net Proceeds of each series of Bonds shall be set aside under the applicable Fiscal Agent
Agreement in the Improvement Fund. For each Improvement Area, moneys in the Improvement
Fund shall be withdrawn therefrom, in accordance with the provisions of the applicable Fiscal
Agent Agreement and this Agreement, for payment of all or a portion of the costs of acquisition
of Authorized Facilities and Discrete Components thereof or for the financing of Authorized
Fees. The City makes no warranty, express or implied, that the Net Proceeds of the Bonds
deposited and held in the Improvement Fund, along with other Funding Sources, will be
sufficient for payment of the Purchase Price of all of the Authorized Facilities and for financing
all of the Authorized Fees.
The Developer agrees that the City shall direct the investment of the funds on deposit in
the funds and accounts established by or pursuant to the Fiscal Agent Agreement, including the
Improvement Fund, and that the Developer has no right whatsoever to direct investments under
the Fiscal Agent Agreement.
The City shall have no responsibility whatsoever to the Developer with respect to any
investment of funds under the Fiscal Agent Agreement, including any loss of all or a portion of
the principal invested or any penalty for liquidation of an investment. Any such loss may
diminish the amounts available in the Improvement Fund to pay the Purchase Price of
Authorized Facilities or Discrete Components and to finance Authorized Fees hereunder. The
Developer further acknowledges that the obligation of any owner of real property in the CFD,
including the Developer to the extent it owns any real property in the CFD, to pay Special Taxes
is not in any way dependent on (i) the availability of amounts in the Improvement Fund to pay
for all or any portion of the Authorized Facilities or Discrete Components thereof or to finance
Authorized Fees hereunder, or (ii) the alleged or actual misconduct of the City in the
performance of its obligations under this Agreement, the Fiscal Agent Agreement, any
subdivision agreement or amendment thereto or any other agreement to which the Developer
and the City are signatories.
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The Developer acknowledges that any lack of availability of amounts in the applicable
Improvement Fund to pay the Purchase Price of Authorized Facilities or any Discrete
Components thereof or to finance Authorized Fees shall in no way diminish any obligation of the
Developer with respect to the construction of or contributions for public facilities or the payment
of fees required by the Conditions of Approval.
4. Special Taxes. The City shall levy and collect Special Taxes on all taxable property
within each applicable Improvement Area as provided by the applicable Rate and Method. The
proceeds of such Special Taxes levied and collected prior to issuance of Bonds shall be
administered by the City in accordance with the applicable Rate and Method and this
Agreement, and, following the issuance of Bonds, the proceeds of such Special Taxes shall be
administered by the City as provided in this Agreement and the Fiscal Agent Agreement.
Without limiting the generality of the foregoing, the City shall deposit any Remainder
Taxes received prior to Bond issuance in an Improvement Fund to be established, maintained
and administered by the City and applied in the same manner as prescribed by Section 3(a)
above with respect to Remaining Facilities Amounts. Following Bond issuance, the City shall
transmit any Remainder Taxes to the Fiscal Agent for deposit into the Improvement Fund
established under the applicable Fiscal Agent Agreement.
5. Construction of the Facilities.
a. Plans. The Developer represents that it has obtained or will obtain approval of
the Plans from all appropriate departments of the City, from any other applicable public entity or
public utility which will become the owner of any Authorized Facilities or Discrete Components
and from any other public entity having jurisdiction with respect to approval of Plans for any
Authorized Facility or Discrete Component. The Developer further represents that the
Authorized Facilities have been or will be constructed in full compliance with such Plans and
any change orders thereto, as approved in the same manner. Copies of all Plans shall be
provided by the Developer to the Director of Public Works.
b. Duty of Developer to Construct Authorized Facilities and to Pay Authorized Fees.
All Authorized Facilities to be acquired hereunder shall be constructed by or at the direction of
the Developer in accordance with the approved Plans and the Conditions of Approval, and all
Authorized Fees shall be paid by the owner of the Property when due. The Developer shall
perform all of its obligations hereunder and shall conduct all operations with respect to the
construction of the Authorized Facilities in a good, workmanlike and commercially reasonable
manner, with the standard of diligence and care normally employed by duly qualified persons
utilizing their best efforts in the performance of comparable work and in accordance with
generally accepted practices appropriate to the activities undertaken. The Developer shall
employ, or cause to be employed, at all times adequate staff or consultants, with the requisite
experience necessary (i) to administer and coordinate all work related to the design,
engineering, acquisition, construction and installation of the Authorized Facilities and (ii) to
determine the Actual Cost of Authorized Facilities and/or Discrete Components and the amount
of Authorized Fees that have been paid and (iii) to then prepare and submit Payment Requests
hereunder.
The Developer shall be obligated: (i) to construct with its own funds, or cause to be
constructed, and cause conveyance to the City or other applicable public entity or public utility
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all Authorized Facilities (including Discrete Components thereof) and (ii) to pay, or cause to be
paid, the Authorized Fees, both in accordance with the Conditions of Approval and the
Developer’s timing of development of the Property, subject to seeking recoupment of the
Purchase Price of the Authorized Facilities and the Authorized Fees from available Funding
Sources by the submission of Payment Requests as provided in this Agreement.
The Developer shall not be relieved of its obligation to construct, or cause to be
constructed, each Authorized Facility (including Discrete Components thereof) and convey, or
cause to be conveyed, each such Authorized Facility to the City or other applicable public entity
or public utility in accordance with the terms hereof, even if there are insufficient Funding
Sources at the time to pay the Purchase Price thereof, and, in any event, this Agreement shall
not affect any obligation of any owner of land in the CFD under any Conditions of Approval or
any governmental approval to which any portion of the Property is subject, with respect to the
public improvements required in connection with the development of the Property.
c. Prevailing Wages. The Developer covenants that, with respect to any contracts
or subcontracts for the construction of the Authorized Facilities, it will assure complete
compliance with State law pertaining to the payment of prevailing wages for such construction.
d. Relationship to Public Works. This Agreement is for the acquisition of the
Authorized Facilities or Discrete Components thereof and for the financing of Authorized Fees
by the City from Funding Sources and is not intended to be a public works contract. The City
and the Developer agree that the Authorized Facilities are of local, and not state-wide concern,
and that the provisions of the California Public Contracts Code shall not apply to the
construction of the Authorized Facilities. The City and the Developer agree that this Agreement
is necessary to assure the timely and satisfactory completion of the Authorized Facilities and
that compliance with the Public Contracts Code with respect to the Authorized Facilities would
work an incongruity and would not produce an advantage to the City.
Notwithstanding the foregoing, the Developer shall solicit at least three (3) competitive
bids for each contract for construction of Authorized Facilities and award all contracts for
construction of the Authorized Facilities (including any Discrete Components thereof), in each
case consistent with the Plans and the Conditions of Approval, to the lowest responsible bidder
among the competitive bids received.
e. Performance and Payment Bonds. The Developer agrees to comply with all
applicable performance and payment bonding requirements of the City (and other applicable
public entities or public utilities) with respect to the construction of the Authorized Facilities. All
contractors and/or subcontractors employed by the Developer in connection with construction of
the Authorized Facilities shall provide a labor and materials bond and a performance bond that
names the City as an additional insured.
f. Contracts and Change Orders. The Developer shall be responsible for entering
into all contracts and any change orders required for the construction of the Authorized
Facilities. All such contracts and change orders shall be submitted to the Director of Public
Works for review and approval as to cost and quantity and quality of work.
g. Independent Contractor. In performing this Agreement, the Developer is an
independent contractor and not the agent or employee of the City. The City shall not be
responsible for making any payments to any contractor, subcontractor, agent, employee or
supplier of the Developer.
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h. Periodic Meetings. From time to time at the request of the Director of Public
Works, representatives of the Developer shall meet and confer with City staff, consultants and
contractors regarding matters arising hereunder with respect to the Authorized Facilities and the
progress in constructing and acquiring the same, and as to any other matter related to the
Authorized Facilities or this Agreement. The Developer shall advise the Director of Public
Works in advance of any coordination and scheduling meetings to be held with contractors
relating to the Authorized Facilities, in the ordinary course of performance of an individual
contract. The Director of Public Works or his/her designated representative shall have the right
to be present at such meetings, and to meet and confer with individual contractors if deemed
advisable by the Director of Public Works to resolve disputes and/or ensure the proper
completion of the Authorized Facilities or Discrete Components.
6. Payment for the Facilities. The Developer hereby agrees to sell the Authorized
Facilities to the City or other applicable public entity or public utility, and the City hereby agrees
to use Funding Sources, as available from time to time, to pay the Purchase Price thereof to the
Developer, subject to the terms and conditions hereof.
a. Inspection. No payment hereunder shall be made by the City to the Developer
for an Authorized Facility or Discrete Component thereof until the Authorized Facility or Discrete
Component thereof has been inspected by the City or other applicable public entity or public
utility and found to be constructed in accordance with the approved Plans. For Authorized
Facilities to be acquired by the City, the Developer shall request inspection using applicable City
procedures. For Authorized Facilities to be acquired by other public entities or utilities, the
Developer shall be responsible for obtaining such inspections and providing written evidence
thereof to the Director of Public Works. The Developer agrees to pay all inspection, permit and
other similar fees of the City applicable to construction of the Authorized Facilities, and such
fees are subject to reimbursement under this Agreement as part of the Actual Cost of the
Authorized Facilities.
b. Request for Payment. Any request for payment hereunder by the Developer
shall be in a form substantially similar to the form attached to this Agreement as Exhibit B and
shall include such supporting documentation to substantiate such request as the City may
require. For any request for payment, the following shall apply:
(i) Substantiation of Actual Costs. The Developer shall provide
documentation satisfactory to the Director of Public Works to substantiate the Actual
Cost of the Authorized Facilities and to determine that the Authorized Facilities are
consistent with the approved Plans. With respect to a Payment Request pertaining to
financing of Authorized Fees, the documentation shall demonstrate that such Authorized
Fees have been paid by the Developer. There shall be a presumption of
reasonableness as to costs incurred under a construction contract (or change order)
entered into as a result of a call for bids by the Developer (or similar procedure approved
by the Director of Public Works), provided that no extraordinary limitations or
requirements (such as a short time frame) are imposed by the Developer on the
performance of such contracts. For any Authorized Facility to be acquired by a public
entity or utility other than the City, the Developer shall provide written evidence of the
approval of such cost substantiation and approval of such Authorized Facility from such
entity or utility when requesting payment.
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(ii) Payment of Claims. In order to receive the Purchase Price for a completed
Authorized Facility or Discrete Component, inspection thereof under Section 6(a) shall
have been made and the Developer shall deliver to the Director of Public Works: (A) a
payment request for such Authorized Facility or Discrete Component, together with all
supporting documentation required by this Agreement to be included therewith, and (B) if
payment is requested for a completed Authorized Facility, (1) if the property on which the
Authorized Facility is located is not owned by the City (or other applicable public entity
that will own the Authorized Facility) at the time of the request, a copy of the recorded
documents conveying to the City (or other applicable public entity or public utility that will
own the Authorized Facility) title to the real property on, in or over which such Authorized
Facility is located, as described in Section 7 hereof, (2) a copy of the recorded notice of
completion of such Authorized Facility (for an Authorized Facility or the final Discrete
Component only, if applicable), (3) to the extent paid for with the proceeds of the Bonds
or the proceeds of Special Taxes, an assignment to the City for the benefit of the CFD of
any reimbursements that may be payable with respect to the Authorized Facility, such as
public utility reimbursements, and (4) an assignment of the warranties and guaranties for
such Authorized Facility, as described in Section 7 hereof, in a form acceptable to the
City.
c. Conditions for Acceptance. The City shall not be obligated to pay the Purchase
Price of any Authorized Facility or Discrete Component until the Authorized Facility or Discrete
Component is constructed and the processing requirements of this Section 6 for such
Authorized Facility or Discrete Component have been satisfied. The Developer acknowledges
that the Discrete Components have been identified for payment purposes only, and that the City
shall not accept an Authorized Facility of which a Discrete Component is a part until the entire
Authorized Facility has been completed. The City acknowledges that the Discrete Components
do not have to be accepted by the City as a condition precedent to the payment of the Purchase
Price therefor, but any such payment shall not be made until the Discrete Component has been
constructed in accordance with the Plans therefor, as determined by the Director of Public
Works. In any event, the City shall not be obligated to pay the Purchase Price for any
Authorized Facility or Discrete Component except from the Funding Sources.
d. Purchase Price. The Purchase Price shall be based upon Actual Cost, as
evidenced by documentation provided by the Developer and submitted to the Director of Public
Works. The Purchase Price paid hereunder for any Authorized Facility or Discrete Component
thereof may be paid in any number of installments as Funding Sources become available.
e. Payments to the Developer. The Developer may request in writing a payment of
the Purchase Price of any Authorized Facility or Discrete Component thereof as described in
Exhibit A hereto subject to the following:
(i) Compliance with Conditions. The Developer shall first comply with
Subsections 6 (a) through (c) above and shall have demonstrated the ability to comply
with Section 7 below, all to the satisfaction of the Director of Public Works.
(ii) Source of Payments. The City and the Developer expect the Purchase
Price, in some cases, may be paid partially from Bond proceeds and partially from other
available Funding Sources.
(iii) Retainage. From each payment requested, a 5% retainage shall be held by
the City in the Improvement Fund for the cost of any Authorized Facility or Discrete
14
Component thereof being acquired by the City pending final completion and acceptance
of the related Authorized Facility or Discrete Component thereof. Any such retention will
be released to the Developer upon final completion and acceptance of the related
Authorized Facility and the expiration of a maintenance period consistent with applicable
City policy thereafter. However, no such retainage shall be required if the Developer
provides a completion bond that is satisfactory to the City for this purpose. Unless
otherwise provided in writing, there shall be no such retainage required for Authorized
Facilities or Discrete Components thereof to be acquired by other public entities or public
utilities. In lieu of such retainage, the Developer shall at any time have the option of
providing the City with either a completion bond, letter of credit or other guaranty in form
and substance satisfactory to the Director of Public Works, upon receipt of which the
City shall promptly release such retainage.
As of the Acceptance Date of an Authorized Facility or the inspection and
approval of a Discrete Component, the completion bond provided by the Developer for
such Authorized Facility or Discrete Component shall be reduced in accordance with the
City’s standard requirements for subdivision improvements and, if applicable, shall serve
as a completion bond to guarantee that such Authorized Facility or Discrete Component
will be free from defects due to faulty workmanship or materials for the period required
by the City’s standard requirements for subdivision improvements, or the Developer may
elect to provide a new completion bond in such an amount. As of the Acceptance Date
of an Authorized Facility, the Developer shall provide a completion bond to guarantee
that such Authorized Facility will be free from defects due to faulty workmanship or
materials for the period required by the City’s standard requirements for subdivision
improvements, which completion bond shall be in the amount required by the City’s
standard requirements for subdivision improvements.
(iv) Requests for Payment. Any Payment Request shall be submitted by the
Developer to the Director of Public Works in the form attached to this Agreement as
Exhibit B, accompanied by the supporting documentation herein specified. Within 10
business days following receipt of a Payment Request, the Director of Public Works shall
review such request and advise the Developer in writing whether the Payment Request
is deemed complete. In the event that the Payment Request is deemed incomplete, the
Director of Public Works shall advise the Developer as to what is missing, and no further
action with respect to the Payment Request shall be required until the Director of Public
Works deems the submission complete. In the event that the Payment Request is
deemed complete, the Director of Public Works shall advise the Developer in writing,
within 10 business days following such determination, whether the Payment Request is
approved or denied, in whole or in part, and in the case of denial setting forth the
reasons for denial. The Developer shall be entitled to resubmit any request or portion
thereof which is deemed incomplete or which is denied if it is able to address the
reasons for the incompleteness or denial. Failure of the Director of Public Works to deny
any request within the stated period of 10 business days following the determination that
the Payment Request is complete shall constitute approval of the request.
(v) Payment by the City. The City shall cause payment to be made to the
Developer pursuant to the applicable provisions of this Agreement and the Fiscal Agent
Agreement within 30 calendar days of either (a) approval of a Payment Request or (b)
receipt of any completed Payment Request that is not denied. The City may make any
payment on a Payment Request jointly to the Developer and any mortgagee or trust
deed beneficiary, contractor or supplier of materials, as their interests may appear, or
15
solely to any such third party, if the Developer so requests the same in writing or as the
City otherwise determines such joint or third party payment is necessary to obtain lien
releases. If there are insufficient Funding Sources to pay the full amount of an approved
Payment Request, then the City shall pay as much of the amount on the Payment
Request as there are Funding Sources available, and the payment of the balance of the
Payment Request shall be deferred until there are sufficient Funding Sources available
to the remaining balance of the Payment Request. Promptly following the availability of
Funding Sources, the City shall, from time to time and in as many installments as
necessary, pay the remaining balance of the Payment Request. Payment Requests
may be paid (i) in any number of installments as Funding Sources become available and
(ii) irrespective of the length of time of such deferral of payment.
(vi) Allocation of Costs. If Developer incurs costs that (1) apply to more than
one Authorized Facility or Discrete Component (e.g., soft costs) or (2) apply to both
Authorized Facilities or Discrete Components and improvements other than the
Authorized Facilities or Discrete Components (e.g., grading), Developer shall allocate, or
cause the contractor to reasonably allocate, such costs between the Authorized
Facilities or Discrete Components (in the case of clause (1)) or between the Authorized
Facilities or Discrete Components and the improvements other than the Authorized
Facilities or Discrete Components (in the case of clause (2)) (the “Developer Allocation”).
The Developer Allocation shall be presumed to be reasonable and shall be accepted for
all purposes of this Agreement unless the City notifies Developer of its good-faith
reasonable disapproval of the allocation within ten (10) business days of submittal of the
payment request. If the City has properly disapproved the Developer Allocation, then
the City and Developer shall promptly allocate such costs, on a reasonable basis,
between the Authorized Facilities or Discrete Components (in the case of clause (1)) or
between the Authorized Facilities or Discrete Components and the improvements other
than the Authorized Facilities or Discrete Components (in the case of clause (2)) (the
“Agreed-Upon Allocation”). Based on the Developer Allocation or the Agreed-Upon
Allocation, if applicable, the City shall include the costs allocated to a specific Authorized
Facility or Discrete Component as part of the Actual Costs of such Authorized Facility or
Discrete Component when such Authorized Facility or Discrete Component is subject to
a payment request.
(vii) Expectations of the Parties. The Developer and the City understand and
agree that (i) the Developer will be constructing Authorized Facilities or Discrete
Components prior to the availability of Funding Sources that will be used to pay for such
Authorized Facilities or Discrete Components, (ii) the City or the other public entities or
public utilities that will own and operate such Authorized Facilities or Discrete
Components may be inspecting such Authorized Facilities or Discrete Components and
processing and completing payment requests for the payment on such Authorized
Facilities or Discrete Components with knowledge that there may be insufficient Funding
Sources available at such time, (iii) the Authorized Facilities or Discrete Components
may be conveyed to and accepted by the City or other public entity or public utility that
will own and operate such Authorized Facilities or Discrete Components when there are
insufficient Funding Sources to pay the Purchase Price of such Authorized Facilities or
Discrete Components, and (iv) in any such case, the payment of any approved payment
requests for the Purchase Price of such Authorized Facilities or Discrete Components
will be deferred until there are sufficient Funding Sources available to pay the Purchase
Price of such Authorized Facilities or Discrete Components, at which time the City will
make such payments in accordance with this Agreement. At all times, the Developer will
16
be constructing such Authorized Facilities or Discrete Components with the expectation
that the Purchase Price for such Authorized Facilities or Discrete Components will be
paid from the Funding Sources. The conveyance of Authorized Facilities or Discrete
Components to the City or other applicable public entity or public utility that will own and
operate such Authorized Facilities or Discrete Components prior to receipt of the
Purchase Price for such Authorized Facilities or Discrete Components shall not be
construed as a gift or a waiver of the payment of the Purchase Price, or any part thereof,
for such Authorized Facilities or Discrete Components.
7. Ownership and Transfer of the Authorized Facilities; Maintenance; Warranties. Any
of the Authorized Facilities to be owned by public entities or public utilities other than the City
shall be conveyed in accordance with the entity’s or utility’s policies and procedures. For the
Authorized Facilities to be owned by the City, the following applies:
a. Land. For purposes of this Agreement, the term “Land” includes fee simple title
or such lesser interests (including easement and/or rights of way or an irrevocable offer of
dedication of the real property with interests therein) as are required and approved by the City
and are included in the description of the Authorized Facilities to be acquired. The Developer
agrees to cause the owners of real property in the CFD to execute and deliver to the City such
documents as are required to complete the transfer of Land, free and clear of all liens, taxes,
assessments, easements, leases, or other encumbrances (whether recorded or not), except for
those which the Director of Public Works determines in writing will not interfere with the intended
use of the Land or related Authorized Facilities. If the Land is within the boundaries of any
existing community facilities district (including the CFD), an assessment district, or other
financing district, then the lien of the special taxes or assessments shall be a permitted
exception to title so long as the Land, while owned by the City or other public entity, is exempt
from the special tax, assessments or similar exactions of any other financing district. Completion
of the transfer of title to Land shall be evidenced by recordation of the acceptance of thereof by
the City Council or the designee thereof.
b. Authorized Facilities Constructed on Private Land. If Authorized Facilities to be
acquired are located on privately-owned Land, the owner thereof shall retain title to the Land
and the completed Authorized Facilities until acquisition under Subsection 7(a) above, which
shall apply to such transfer. Pending the completion of such transfer and where the Developer
has received any payment for such Authorized Facilities, the Developer shall be responsible for
maintaining the land and any Authorized Facilities in good and safe condition.
c. Authorized Facilities Constructed on City Land. If the Authorized Facilities to be
acquired are on land owned by the City, the City hereby grants to the Developer a license to
enter upon such land for purposes related to the construction (and maintenance pending
acquisition) of the Authorized Facilities. The provisions for inspection and acceptance of such
Authorized Facilities otherwise provided herein shall apply.
d. Warranties; Maintenance. The Developer shall maintain each Discrete
Component in good and safe condition until the date of acceptance of the Authorized Facility of
which such Discrete Component is a part. Prior to the Acceptance Date, the Developer shall be
responsible for performing any required maintenance on any completed Discrete Component or
Authorized Facility.
On or before the Acceptance Date, the Developer shall assign to the City all of the
Developer’s rights in any warranties, guarantees, maintenance obligations or other evidence of
17
contingent obligations of third persons with respect to such Authorized Facility. The Developer
shall maintain or cause to be maintained each Authorized Facility to be owned by the City
(including the repair or replacement thereof) for a period of one year from the Acceptance Date
thereof, or, alternatively, shall provide a bond reasonably acceptable in form and substance to
the Director of Public Works for such period and for such purpose, to insure that defects, which
appear within said period will be repaired, replaced, or corrected by the Developer, at its own
cost and expense, to the satisfaction of the Director of Public Works. During any such one-year
period, the Developer shall commence to repair, replace or correct any such defects within 30
days after written notice thereof by the City to the Developer, and shall complete such repairs,
replacement or correction as soon as practicable. After such one-year period, the City shall be
responsible for maintaining such Authorized Facility. Any warranties, guarantees or other
evidences of contingent obligations of third persons with respect to the Authorized Facilities to
be acquired by the City shall be delivered to the Director of Public Works as part of the transfer
of title.
For purposes of this Section 7, after the City has accepted an Authorized Facility, the
terms “maintain” and “maintenance” mean the repair, replacement, or correction of any defects
in the Authorized Facility or Discrete Component, and shall not mean the day-to-day upkeep or
correction of normal wear and tear of the Authorized Facility or Discrete Component (such as
watering or weeding for landscape improvements, painting, graffiti removal, etc.).
8. Limitation of Liability; Excess Costs; Surplus in the Improvement Fund. The
Developer agrees that any and all obligations of the City arising out of or related to this
Agreement are special and limited obligations of the City and the City’s obligations to make any
payments hereunder are restricted entirely to the Funding Sources and shall not extend to any
other source. The Developer agrees to pay all costs of the Authorized Facilities it is constructing
that are in excess of the Funding Sources. No City Council member, City staff member,
employee or agent shall incur any liability hereunder to the Developer or any other party in their
individual capacities by reason of their actions hereunder or execution hereof.
If the construction and acquisition of all the Authorized Facilities listed on Exhibit A have
been completed and the Purchase Price (including any retentions described above) with respect
thereto has been paid, and Funding Sources remain or become available through, among other
things, the issuance of additional Bonds, the City and the Developer may designate in a
supplement hereto, Authorized Facilities (and/or Discrete Components thereof) to be
constructed and acquired with such remaining or additional Funding Sources to be selected
from the list of Authorized Facilities; provided, however, the City shall determine the use of such
funds consistent with the terms of the Fiscal Agent Agreement. If the City and the Developer do
not so designate another use in a supplement hereto, the Funding Sources will be used to
redeem Bonds.
9. Indemnification and Hold Harmless. The Developer shall take and assume all
responsibility for the work performed as part of the Authorized Facilities constructed pursuant to
this Agreement until the acceptance by the City of the respective Authorized Facilities occurs.
The Developer shall assume the defense of and indemnify and save harmless the City
and the City’s consultants, Councilmembers, officers, employees and agents, from and against
any and all claims, losses, damage, expenses and liability of every kind, nature, and description,
directly or indirectly arising from any breach by the Developer of this Agreement, the
performance of the work covered by this Agreement, from the Developer’s or any other entity’s
negligent design, engineering and/or construction of any of the Authorized Facilities acquired
18
from the Developer hereunder, the Developer’s non-payment under contracts between the
Developer and its consultants, engineer’s, advisors, contractors, subcontractors and suppliers in
the provision of the Authorized Facilities, or any claims of persons employed by the Developer
or its agents to construct the Authorized Facilities, and from any and all claims, losses, damage,
expenses, and liability, howsoever the same may be caused, resulting directly, or indirectly from
any breach by the Developer of this Agreement or the nature of the work covered by this
Agreement, to the fullest extent permitted by law. In accordance with Civil Code section 2782,
nothing in this Section shall require defense or indemnification for death, bodily injury, injury to
property, or any other loss, damage or expense arising from the active or sole negligence or
willful misconduct of the City, and its consultants, and its Councilmembers, agents, servants or
independent contractors who are directly responsible to the City, or for defects in design
furnished by such persons. Moreover, nothing in this Section 9 shall apply to impose on the
Developer, or to relieve the City from, liability for active negligence of the City, or its consultants
as delineated in Civil Code Section 2782. Any relief for determining the City’s sole or active
negligence shall be determined by a court of law.
The City does not, and shall not, waive any rights against the Developer which it may
have by reason of the aforesaid hold harmless agreements because of the acceptance by the
City, or deposit with the City by the Developer of any insurance policies required by the City.
The hold harmless agreement by the Developer set forth in this Section 9 shall apply to all
damages and claims for damages of every kind suffered, or alleged to have been suffered by
reasons of any of the aforesaid operations of the Developer, or any subcontractor, regardless of
whether or not such insurance policies are determined to be applicable to any of such damages
or claims for damages.
No act by the City, or its representatives in processing or accepting any Plans, in
releasing any bond, in inspecting or accepting any work, or of any other nature, shall in any
respect relieve the Developer or anyone else from any legal responsibility, obligation or liability it
might otherwise have.
10. Representations and Covenants of the Developer.
a. Representations of the Developer. The Developer represents and warrants for the
benefit of the City as follows:
(i) Organization. The Developer is a limited liability company duly organized and
validly existing under the laws of the State of Delaware, is in compliance with all
applicable laws of the State of California, and has the power and authority to own its
properties and assets and to carry on its business as now being conducted and as now
contemplated.
(ii) Authority. The Developer has the power and authority to enter into this
Agreement, and has taken all action necessary to cause this Agreement to be executed
and delivered, and this Agreement has been duly and validly executed and delivered by
the Developer.
(iii) Binding Obligation. This Agreement is a legal, valid and binding obligation of
the Developer, enforceable against the Developer in accordance with its terms, subject
to bankruptcy and other equitable principles.
19
(iv) Requests for Payment. The Developer represents and warrants that (i) it will
not request payment from the City for the acquisition of any improvements that are not
part of the Authorized Facilities, and (ii) it will diligently follow all procedures set forth in
this Agreement with respect to the Payment Requests.
(v) Plans. The Developer represents that it has obtained or will obtain approval
of the Plans for the Authorized Facilities to be acquired from the Developer hereunder
from all appropriate departments of the City. The Developer further agrees that the
Authorized Facilities to be acquired from the Developer hereunder have been or will be
constructed in full compliance with such approved plans and specifications and any
supplemental agreements (change orders) thereto, as approved in the same manner.
b. Covenants of the Developer. The Developer covenants for the benefit of the City as
follows:
(i) Financial Records. Until the final acceptance of the Authorized Facilities, the
Developer covenants to maintain proper books of record and account for the
construction of the Authorized Facilities and all costs related thereto. Such accounting
books shall be maintained in accordance with generally accepted accounting principles,
and shall be available for inspection by the City or its agent at any reasonable time
during regular business hours on reasonable notice.
(ii) Prevailing Wages. The Developer covenants that, with respect to any
contracts or subcontracts for the construction of the Authorized Facilities to be acquired
from the Developer hereunder, it will assure complete compliance with State law
pertaining to the payment of prevailing wages under the California Labor Code, including
any and all reporting requirements.
(iii) Compliance with Laws. The Developer shall not with knowledge commit,
suffer or permit any act to be done in, upon or to the Property or the Authorized Facilities
in violation of any law, ordinance, rule, regulation or order of any governmental authority
or any covenant, condition or restriction now or hereafter affecting the Property or the
Authorized Facilities.
(iv) Transfers of Ownership of any Portion of the Property. The Developer
agrees that in the event that it sells or otherwise transfers ownership of any of the
Property to another party (in each case, a “Transferee”), pursuant to and in accordance
with the provisions of Section 20 of the Development Agreement, the Developer will (i)
notify the City in writing within 30 calendar days of the transfer, identifying the legal
name of and mailing address for the Transferee, the applicable County Assessor’s
parcel number or numbers for and the acreage of the portion of the Property transferred,
(ii) notify the Transferee in writing prior to the closing of any such transfer of the
existence of the Development Agreement and this Agreement and, in general, the
Developer’s rights and obligations under the Development Agreement and hereunder
with respect to the construction of and payment for the Authorized Facilities and the
requirement of written approval from the City Manager to any assignment to the
Transferee of the Developer’s rights and obligations under the Development Agreement,
(iii) require such Transferee to comply with the obligation for continuing disclosure to the
extent provided by the Continuing Disclosure Undertaking and (iv) notify the Transferee
in writing of the existence of the CFD and the foreclosable special tax lien to enforce the
20
Special Tax payment obligation, and otherwise comply with any applicable provision of
Section 53341.5 of the Act.
(v) Additional Information. The Developer agrees to cooperate with all
reasonable written requests for nonproprietary information by the City related to the
status of construction of improvements within the CFD and the anticipated completion
dates for future improvements.
(vi) Disclosure in Connection with Bond Issuance; Continuing Disclosure. The
Developer agrees to provide such information about its development, its financing plan
and such other matters as may reasonably be requested by the City, the City’s bond
counsel, the City’s disclosure counsel or the City’s bond underwriter for the preparation
and dissemination of an official statement pertaining to any series of Bonds. The
Developer agrees to comply with all of its obligations under the Continuing Disclosure
Undertaking.
(vii) Compliance With Applicable Law. The Developer accepts responsibility for
and shall be responsible for identification of and compliance with all applicable laws
pertaining to the construction and installation of the Authorized Facilities and the contract
or contracts pertaining thereto, including but not limited to such applicable laws as may
be contained in the California Labor Code, the California Public Contract Code, and the
California Government Code. The Developer will neither seek to hold or hold the City
liable for, and will hold the City harmless with respect to, any consequences of any
failure by the Developer to correctly determine the applicability of any such requirements
to any contract it enters into. This paragraph shall apply with respect to any
enforcement action, whether public or private, and whether brought by a public
enforcement agency or by private civil litigation, against the Developer, the City or the
CFD, or any of them, with respect to the matters addressed by this paragraph.
11. Limitation. Nothing in this Agreement shall be construed as affecting the Developer’s
or the City’s duty to perform their respective obligations under any other agreements, land use
regulations, or subdivision requirements related to the Property, which obligations (if any) are
and shall remain independent of the Developer’s and the City’s right and obligations under this
Agreement.
12. Cooperation. The City and Developer agree to cooperate with respect to the
completion of the financing of the Authorized Facilities through the levy of Special Taxes and
issuance of one or more series of Bonds, as set forth in the Development Agreement and this
Agreement. The City and the Developer agree to meet in good faith to resolve any differences
on future matters which are not specifically covered by the Development Agreement or this
Agreement.
13. 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 the consent, approval, or
acceptance not be unreasonably withheld or delayed, unless the provision expressly
incorporates a different standard. The foregoing provision shall not apply to provisions in this
Agreement which provide for decisions to be in the sole discretion of the party making the
decision.
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14. Audit. The Director of Public Works 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 in
constructing any of the Authorized Facilities and any bids taken or received for the construction
thereof or materials therefor.
15. Attorney’s Fees. In the event of the bringing of any action or suit by either party
against the other arising out of this Agreement, the party in whose favor final judgment shall be
entered shall be entitled to recover from the other party all costs and expenses of suit, including
reasonable attorneys’ fees.
16. Notices. Any notice, payment or instrument required or permitted by this Agreement
to be give or delivered to either party shall be deemed to have been received when personally
delivered or one week following deposit of the same in any United States Post Office, registered
or certified mail, postage prepaid, addressed as follows:
Developer: Dublin Crossing, LLC
500 La Gonda Way, Suite 100
Danville, CA 94526
Attn: Project Manager
City: City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Manager
Each party may change its address or addresses for delivery of notice by delivering
written notice of such change of address to the other party.
17. 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.
18. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the parties hereto. This Agreement may not be
assigned by the Developer without the prior written consent of the City, set forth in an
assignment agreement required by Section 20 of the Development Agreement, which consent
shall not be unreasonably withheld or delayed. In connection with any such consent of the City,
the City may condition its consent upon the acceptability of the financial condition of the
proposed assignee and upon any other factor which the City deems relevant in the
circumstances.
19. 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 thereafter.
20. Merger. No other agreement, statement or promise made by any party or any
employee, officer or agent of any party with respect to any matters covered hereby that is not in
writing and signed by all the parties to this Agreement shall be binding.
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21. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original.
22. Amendments. Amendments to this Agreement shall be made only by written
instrument executed by each of the parties hereto.
23. Governing Law. The provisions of this Agreement shall be governed by the laws of
the State.
SIGNATURES ON FOLLOWING PAGE
B
-1
A-1
EXHIBIT A
AUTHORIZED FACILITIES AND AUTHORIZED FEES
A. City Public Capital Improvements
1. Backbone Storm Drainage
2. Backbone Street Improvements
3. Master Landscaping, Fencing and Signage on Public Property, Including
Public Easements and Rights-of-Way
B. City-Imposed Impact Fees
1. Fire Impact Fees
2. Freeway Interchange Fees
3. Public Art In-Lieu Fees
4. Residential Traffic Impact Fees – Eastern Dublin Fee
5. Development Agreement Fees:
a. ACSPA Contribution
b. Iron Horse Trail Bridge Contribution
c. Park Construction Payment
C. Dublin San Ramon Services District (DSRSD)
1. Capital Improvements
a. Backbone Sanitary Sewer
b. Backbone Domestic Water
c. Backbone Reclaimed Water
2. DSRSD Impact Fees
a. Water System Connection Fees
b. Water Meter Assembly Fees
c. Wastewater Impact Fees
D. Zone 7
1. Capital Improvements
a. Backbone Storm Drainage
2. Zone 7 Impact Fees
a. Water Connection Fees
b. Drainage Assessment Fees (Impervious Surface)
B
-2
A-2
Notwithstanding the foregoing lists on page A-1 hereof, in the event that Dublin Crossing,
LLC, or any landowner of any portion of the land within CFD No. 2015-1 which is responsible for
the construction of any of the listed improvements or payment of any of the listed impact fees
enters into a written agreement with the City, DSRSD or Zone 7, as the case may be, to move all or
any portion of any of the improvements or impact fees listed above from one category to the other,
the subject improvements or impact fees shall remain eligible for financing by CFD No. 2015-1
without the requirement of City Council action to authorize such change. Without limiting the
generality of the foregoing, if, for example, the City and Dublin Crossing, LLC (the “Parties”),
enter into a written agreement (including but not limited to an agreement amending the
Development Agreement between the Parties) pursuant to which the Parties agree that Dublin
Crossing, LLC, will construct the City park referenced as Item B(5)(c) above, then that City park
shall be eligible for financing by CFD No. 2015-1 as a City Public Capital Improvement.
Similarly, a written agreement to add any additional improvements or impact fees to those
listed shall make such improvements or impact fees eligible for financing by CFD No. 2015-1, and
a written agreement to delete any improvements or impact fees from those listed shall make such
improvements or impact fees ineligible for such financing, in each case without the requirement of
City Council action to authorize such change.
B-1
EXHIBIT B
FORM O F PAYMENT REQUEST
City of Dublin
Community Facilities District No. 2015-1 (Dublin Crossing)
Pursuant to the Acquisition Agreement, dated as of July 18, 2017 (the “Acquisition
Agreement”), b y and between the City of Dublin (the “City”) and Dublin Crossing LLC (the
“Developer”), the Developer hereby requests (a) payment of the Purchase Price of the
Authorized Facilities and/or the Discrete Components described in Attachment 1 hereto or (b)
reimbursement for the Authorized Fees described in Attachment 1 hereto. Capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the Acquisition Agreement.
In connection with this Paym ent Request, the undersigned hereby represents and
warrants to the City as follows:
For Authorized Facilities or Discrete Components:
1. The undersigned is an authorized representative of the Developer, qualified to
execute this request for payment on behalf of the Developer and knowledgeable as to the
matters set forth herein.
2. The Developer has submitted or submits herewith to the Director of Public Works
as-built drawings or similar Plans for each of the Authorized Facilities and/or Discrete
Components described in Attachment 1, and such drawings or Plans, as applicable, are true,
correct and complete representations of the Authorized Facilities and/or Discrete Components
listed in Attachment 1.
3. Each of the Authorized Facilities and Discrete Components described in
Attachment 1 has been constructed in accordance with the Plans therefor, and in accordance
with all applicable City standards and the requirements of the Acquisition Agreement, and the as-
built drawings or similar Plans referenced in paragraph 2 above, and none of the Authorized
Facilities or Discrete Components described in Attachment 1 has been the subject of any prior
Payment Request.
4. The Developer has submitted or submits herewith to the Director of Public Works
soils reports and certifications as appropriate with respect to each Authorized Facility or
Discrete Component described in Attachment 1.
5. The true and correct Actual Cost of each of the Authorized Facilities and/or
Discrete Components described in Attachment 1 is set forth in Attachment 1.
6. The Developer has submitted or submits herewith to the Director of Public Works a
copy of each construction contract for each of the Authorized Facilities and/or Discrete
Components described in Attachment 1, a copy of the bid notice for each such contract and a
copy of each change order applicable to each such contract, together with the written approval
of each such change order by the Director of Public Works of the City.
7. The Developer has submitted or submits herewith to the Director of Public Works a
letter from the Developer evaluating invoices, receipts, worksheets and other evidence of costs
for each of the Authorized Facilities and/or Discrete Components described in Attachment 1,
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which are in sufficient detail to allow the Director of Public Works to verify the Actual Cost of
such Authorized Facilities and Discrete Components and, if any of such invoices, receipts,
worksheets or other evidence of costs include costs for facilities other than such Authorized
Facilities and/or Discrete Components, the Developer has submitted or submits herewith to the
Director of Public Works a written description as to how the items and amounts in such invoices,
receipts, worksheets and other evidence of costs have been allocated among such other
Authorized Facilities and/or Discrete Components, together with evidence that such allocation
is appropriate, correct and reasonable.
8. The Developer has submitted or submits herewith to the Director of Public Works
evidence that each of the invoices, receipts, worksheets and other evidence of costs referred to
in the preceding paragraph, has been paid in full, which evidence is in the form of copies of
cancelled checks or such other form as the Director of Public Works of the City has approved in
writing.
9. There has not been filed with or served upon the Developer notice of any lien,
right to lien or attachment upon, or claim affecting the right to receive, the paym ent of the
Purchase Price for each of the Authorized Facilities and/or Discrete Components described in
Attachment 1 which has not been released or will not be released simultaneously with the
payment of such obligation, other than materialmen’s or mechanics’ liens accruing by operation
of law.
10. The Developer has submitted or submits herewith to the Director of Public Works
copies of unconditional lien releases from all contractors, subcontractors and materialmen for all
work with respect to each of the Authorized Facilities and/or Discrete Components described in
Attachment 1, together with the written approval of each such lien release by the City Attorne y of
the City.
11. The representations and warranties of the Developer set forth in Section 10(a) of
the Acquisition Agreement are true and correct on and as of the date hereof with the same force
and effect as if made on and as of the date hereof.
12. The Developer represents that it has satisfied the conditions specified in the
Acquisition Agreement for the payment of the Purchase Price of Authorized Facilities or Discrete
Components.
13. The Developer represents and warrants that, as of the date hereof, there is
not present on, under or in any of the Authorized Facilities and/or Discrete Components
described in Attachment 1, or any portion thereof, an y hazardous materials, except for (i) any
types or amounts that do not require remediation or mitigation under federal, state or local laws,
ordinances, regulations, rules or decisions, (ii) those that have been remediated or
mitigated in full compliance with applicable federal, state or local laws, ordinances,
regulations, rules or decisions, (iii) those with respect to which ongoing remediation or
mitigation is being performed in full compliance with applicable federal, state or local laws,
ordinances, regulations, rules or decisions, (iv) any types or amounts that do not present a
human health risk or hazard to the public, and (iv) if such Authorized Facilities and/or Discrete
Components described in Attachment 1 were, at the time of commencement of the acquisition,
construction and installation of such Authorized Facilities and/or Discrete Components,
property of the City and, from such time of commencement through and including the date
hereof, remained property of the City, those hazardous substances that were present on, under
or in such Authorized Facilities and/or Discrete Components at such time of commencement.
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For Authorized Fees:
1. The undersigned is an authorized representative of the Developer, qualified to
executed this request for payment on behalf of the Developer and knowledgeable as to the
matters set forth herein.
2. The identity and amount of the Authorized Fees are described in Attachment 1.
3. The Developer has submitted or submits herewith to the Director of Public Works
evidence that Authorized Fees referred to in the preceding paragraph have been paid in full,
which evidence is in the form of copies of cancelled checks or such other form as the Director of
Public Works has approved in writing.
4. The representations and warranties of the Developer in Section 10(a) of the
Acquisition Agreement are true and correct on and as of the date hereof with the same force and
effect as if made on and as of the date hereof.
5. The Developer represents that it has satisfied the conditions specified in the
Acquisition Agreement for the reimbursement of Authorized Fees by the City.
SIGNATURES ON FOLLOWING PAGE
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I hereb y declare under penalty of perjury that the above representations and
warranties are true and correct.
DUBLIN CROSSING LLC,
a Delaware limited liability company
By:________________________________
Name: _____________________________
Title:_______________________________
By:________________________________
Name: _____________________________
Title:_______________________________
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APPROVAL BY THE DIRECTOR OF PUBLIC WORKS
I, the undersigned Director of Public Works of the City of Dublin, hereby certify as
follows:
(i) Dublin Crossing LLC (the “Developer”), has requested payment of the Purchase
Price of the Authorized Facilities and/or the Discrete Components or reimbursement for the
Authorized Fees described in Attachment 1 hereto. All references hereafter in this certification
to “the Authorized Facilities and/or the Discrete Components” shall be deemed to refer to
those Authorized Facilities and/or Discrete Components or those Authorized Fees described
in Attachment 1 hereto.
(ii) I or persons working under my supervision have confirmed that each of the
Authorized Facilities and/or Discrete Components is complete in accordance with the Plans.
(iii) The Developer has provided me with satisfactory documentation to demonstrate
how Actual Cost for the subject Authorized Facilities and/or Discrete Components was
calculated, to establish that the Authorized Facilities and Discrete Components are consistent
with those presented in the documentation of Actual Cost, and to establish that the
Authorized Fees described in Attachment 1 hereto, if any, have been paid by the Developer.
(iv) The Actual Cost of the Authorized Facilities and Discrete Components and the
amount of Authorized Fees described in Attachment 1 hereto, if any, have been reviewed,
verified and approved by me or persons working under my supervision under the terms
specified in Section 5 of the Acquisition Agreement. As such, Payment of the Purchase Price
of each of the Authorized Facilities and/or Discrete Components and reimbursement to the
Developer for the amount of Authorized Fees described in Attachment 1 hereto is hereby
approved.
Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto
in the Acquisition Agreement, dated as of July 18, 2017 (the “Acquisition Agreement”), by and
between the City of Dublin (the “City”) and the Developer.
Dated: _______________________ __________________________________
Gary Huisingh
Director of Public Works
City of Dublin
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ATTACHMENT 1
Authorized Facility,
Discrete Component
or Authorized Fees
Actual
Cost
Purchase
Price
Total