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SA - Resolution 28139-SARESOLUTION NO. 28139 -SA RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA, ACTING IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, AUTHORIZING THE SUCCESSOR AGENCY TO RE -ENTER INTO THE FUNDING AGREEMENT FOR LEDDY AVENUE SEWER AND WATER EXTENSION PROJECT WHEREAS, pursuant to Resolution No. 28029, adopted by the City Council of the City of Santa Rosa on January 10, 2012, the City of Santa Rosa agreed to serve as the Successor Agency to the Redevelopment Agency of the City of Santa Rosa ( "Agency ") commencing upon dissolution of the Redevelopment Agency on February 1, 2012 pursuant to AB XI 26 ( "AB 26 "); and WHEREAS, Health and Safety Code Section 33220 authorized any public body to enter into an agreement with a redevelopment agency for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of redevelopment projects located within the jurisdiction in which such public body is authorized to act, upon the terms and with or without consideration as such public body determines; and WHEREAS, by Resolution No. 27905, adopted June 14, 2011, the City of Santa Rosa ( "City ") approved the Second Amendment to the Funding Agreement with the Redevelopment Agency under which the Agency would provide additional funding, in the amount of $325,000, to construct improvements to correct critical health and safety problems in the Leddy Park area caused by septic tank overflows during the winter months resulting in contaminated drinking water wells; and WHEREAS, in accordance with AB 26, the City, acting in its capacity as Successor Agency, prepared a Recognized Obligation Payment Schedule ( "ROPS ") setting forth the schedule of existing Redevelopment Agency obligations, including among others, repayment of the Funding Agreements; and WHEREAS, the Oversight Board for the Successor Agency was established pursuant to AB 26 (the "Oversight Board "); and WHEREAS, the Oversight Board approved the ROPS covering the period of January through June 2012 on March 29, 2012, and approved the ROPS covering the period of July through December 2012 on May 3, 2012; and WHEREAS, the State Department of Finance reviewed the ROPS, but by letter dated May 17, 2012, indicated that it objected to that portion of the Funding Agreement for Leddy Avenue Sewer and Water Extension Project ($46,637) that would be funded through the Redevelopment Property Tax Trust Fund; and WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the redevelopment agency are invalid; provided, however, a successor agency that wishes to enter or re -enter into agreements with the city that formed the agency may do so upon obtaining approval of the Oversight Board; and WHEREAS, the improvements undertaken by the Redevelopment Agency in the Southwest Redevelopment Project Area using the advance of City funds have resulted in significant revitalization of the Project Area, and have been of benefit to all taxing entities that share in the property tax revenue generated by property located within the Project Area because such improvements have removed impediments to development, eliminate adverse conditions in the project area and catalyzed private development, thus resulting in an increase in assessed valuation and property tax revenue that accrues to the taxing entities; and WHEREAS, the City and Successor Agency desire to ratify the Successor Agency's obligation to repay the Funding Agreements. NOW, THEREFORE, BE IT RESOLVED that the Successor Agency, pursuant to Health and Safety Code Section 34178(a), approves and authorizes the re- entering of a Funding Agreement for Leddy Avenue Sewer and Water Extension Project as attached, and authorizes the Successor Agency to execute and deliver the agreement substantially in such form. BE IT FURTHER RESOLVED that the Successor Agency authorizes the Director of Economic Development and Housing or the City Manager to execute the agreement and to take any other action necessary to carry out the purpose of this resolution, subject to approval by the City Attorney. BE IT FURTHER RESOLVED that the Successor Agency authorizes the agreement to be listed on updated or future ROPS for the Successor Agency. IN COUNCIL DULY PASSED this 19 day of June, 2012. AYES: (7) Mayor Olivares, Vice Mayor Sawyer, Council Members Bartley, Gorin, Ours, Vas Dupre, and Wysocky NOES: (0) ABSENT: (0) ABSTAIN: (0) ATTEST: Deputy City Clerk -- APPROVED: Mayor APPROVED AS TO FORM: Successor Agency Attorney AMENDED AND RESTATED FUNDING AGREEMENT SOUTHWEST REDEVELOPMENT PROJECT AREA (Leddy Avenue Sewer and Water Extension Project) This Amended and Restated Funding Agreement (Agreement) is entered into as of , 2012 by and between the City of Santa Rosa, acting in its capacity as the Successor Agency to the Former Redevelopment Agency of the City of Santa Rosa ( "Successor Agency "), and CITY OF SANTA ROSA, a municipal corporation (City). RECITALS A. The Redevelopment Agency and City previously entered into a Funding Agreement, dated December 1, 2009, pursuant to which the Agency agreed to contribute to the City an amount equal to $1,911,893 to pay the costs related to the extension of the Leddy Avenue Sewer and Water Main between Sebastopol Road and Finley Avenue and to a portion of Golden Gate Avenue (Improvements); and a First Amendment to Funding Agreement, dated February 7, 2011, pursuant to which the Agency agreed to contribute to the City additional funding in the amount of $281,488 to pay the costs relating to a portion of the extension of the Leddy Avenue Sewer and Water Main down the remaining length of Golden Gate Avenue and along Finley Avenue and Fresno Avenue (Additional Improvements), providing for a total contribution of $2,193,381 (Agency Contribution). B. The City and Redevelopment Agency cooperated to enable the City to construct the Improvements and Additional Improvements in a manner that allowed for the extension of the sewer and water main improvements in phases as funding became available for such construction. The City completed construction of the Improvements with an approximate remainder of unexpended Agency Contribution of $648,477, and desires to commence construction of the Additional Improvements, using the unexpended Agency Contribution and anticipates the need of additional funds for such work. C. The Successor Agency shall make such Agency Contribution on a reimbursement basis to the City from any funds available to the Successor Agency for such purpose, including the proceeds of any bonds issued by the Agency, loans and Tax Increments and/or distributions from the Redevelopment Property Tax Trust Fund from the Southwest Santa Rosa Project Area. AGREEMENT NOW, THEREFORE, in consideration of the mutual benefit to be derived by the parties, it is agreed that: Section 1. The amount of the Agency Contribution to be paid by the Successor Agency under Section 2 of the Funding Agreement and First Amendment to the Funding Agreement is hereby increased by Three Hundred Twenty-Five Thousand Dollars ($325,000.00) (Additional Funding), providing for a total contribution in the amount of Two Million Five Hundred Eighteen Thousand Three Hundred Eighty-One Dollars ($2,518,381.00) to pay actual costs incurred by the City for design, right of way acquisition and construction of the Improvements and the Additional Improvements. The parties agree that such Additional Funding is intended to be used to pay construction costs associated with the Additional Improvements. Section 2. Except as modified by this Amended and Restated Funding Agreement, all other terns and conditions of the Funding Agreement and the First Amendment to Funding Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth above. CITY OF SANTA ROSA ACTING IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SANTA ROSA By: Director /City Manager Approved as to Form: By Successor Agency Counsel CITY OF SANTA ROSA By: City Manager Approved as to Form: By: City Attorney