RES-ORA-0525 Railroad Grade Crossing Safety Enhancements & ImprovementsRESOLUTION NO.ORA -0525
A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY MAKING CERTAIN
FINDINGS AND APPROVING AND AUTHORIZING
THE EXECUTION OF A FIRST AMENDMENT TO
COOPERATION AND REIMBURSEMENT
AGREEMENT WITH THE CITY OF ORANGE
RELATING TO THE ADDITIONAL FINANCIAL
PARTICIPATION OF THE ORANGE
REDEVELOPMENT AGENCY FOR A PORTION OF
THE COST OF RAILROAD GRADE CROSSING
SAFETY ENHANCEMENTS AND IMPROVEMENTS
AT CERTAIN GRADE CROSSINGS WITHIN THE
CITY.
WHEREAS, the Orange Redevelopment Agency, a public body, corporate and politic
the "Agency "), has been duly created, established and authorized to transact business and
exercise its powers under and pursuant to the Community Redevelopment Law (commencing
with Section 33000 of the Health and Safety Code of the State of California and herein referred
to as the "Redevelopment Law "); and
WHEREAS, the City of Orange (the "City ") is a municipal corporation, which
exercises governmental functions and powers and is organized and existing under the laws of
the State of California; and
WHEREAS, pursuant to the Redevelopment Law, the Amended and Restated
Redevelopment Plan (the "Redevelopment Plan ") for the Orange Merged and Amended
Redevelopment Project Area (the "Redevelopment Project Area ") was duly approved by the
City Council on November 27, 2001 by Ordinance No. 21 -01; and
WHEREAS, pursuant to the Redevelopment Law, the Agency is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the
Redevelopment Project Area; and
WHEREAS, by the adoption of its Resolution No. ORA -0501 on June 23, 2009, the
Board of Directors of the Agency (herein referred to as the "Agency Board ") approved the
terms and provisions of that certain Cooperation and Reimbursement Agreement for the
Provision of Public Improvements of Benefit to the Orange Merged and Amended
Redevelopment Project Area (Quiet Zone Improvements), dated as of July 21, 2009 (the
Original Agreement "), pursuant to which the Agency agreed to participate financially with
the construction of railroad grade crossing safety enhancements and improvements at certain
grade crossings within the City (the "Public Improvements "). To that end, the Agency
agreed to pay the City the sum of $2,100,000.00, which amount represented a portion of the
City's share of the cost of construction of the Public Improvements that the City had agreed
to pay to the Orange County Transportation Authority ( "OCTA ") pursuant to that certain
Cooperative Agreement No. C -8 -0859 between Orange County Transportation Authority and
City of Orange for Railroad Grade Crossing Safety Enhancements and Safety Measures
Related to Quiet Zone Implementation for Cities, dated as of November 10, 2008 (hereinafter
referred to as the "OCTA Agreement "); and
WHEREAS, OCTA has informed the City that the cost of the Public Improvements
has increased from the estimate that was set forth in the OCTA Agreement due to signal
material and railroad signal installation labor. In addition, the City has requested certain
betterments that were not included within the scope of work attached to the OCTA
Agreement. Accordingly, and pursuant to the 12% cost share obligation of the City under the
OCTA Agreement and the cost of the City- requested betterments, OCTA has requested that
the City enter into that certain Amendment No. 2 to Cooperative Agreement No. C -8 -0859
between Orange County Transportation Authority and City of Orange for Railroad Grade
Crossing Safety Enhancements and Safety Measures Related to Quiet Zone Implementation
for Cities (hereinafter referred to as "OCTA Amendment No. 2 "), which, once approved, will
obligate the City to pay to OCTA the additional sum of $1,017,823.00 to reflect the increase
in the City's cost share obligation under the OCTA Agreement; and
WHEREAS, since a portion of the City- requested betterments was requested, and
paid for, by Chapman University in the amount of $375,000.00, the increase in the City's
actual out -of- pocket financial obligation to OCTA under OCTA Amendment No. 2 is the
sum of $642,823.00 (i.e., $1,017,823.00 - $375,000 = $642,823.00); and
WHEREAS, in addition to the City's actual out -of- pocket financial obligation
payable to OCTA under OCTA Amendment No. 2 (i.e., the sum of $642,823.00), the City
estimates that it may incur additional staff and professional costs and expenses (such as
engineering, legal, accounting, inspection, materials testing and similar professional services)
in an amount up to $300,000.00 for the completion of its construction and project
management responsibilities for the Public Improvements under the OCTA Agreement, as
amended, and for making application to the Federal Railroad Administration for a "quiet
zone" designation; and
WHEREAS, the City has requested the Agency to assist with funding the increased
actual out -of- pocket financial obligation payable to OCTA under OCTA Amendment No. 2
i.e., the sum of $642,823.00) and the estimated additional staff and professional costs and
expenses that the City might incur (i.e., the sum of $300,000.00) in a total aggregate amount
not in excess of $942,823.00 because the City has no other reasonable means available to it
to fund said costs; and
WHEREAS, the Agency is willing, in connection with the increased actual out -of-
pocket financial obligation payable to OCTA under OCTA Amendment No. 2 and the
additional staff and professional costs and expenses that the City might incur, to pay or
reimburse the City an amount not in excess of $942,823.00; and
PA
WHEREAS, Section 33445 of the Redevelopment Law authorizes the Agency Board,
with the consent of the City Council, to, among other things, pay all or a part of the cost of
installation and construction of any building, facility, structure, or other improvement that is
publicly owned and is located in or contiguous to the Redevelopment Project Area upon the
making of the following findings:
a) That the acquisition of land or the installation or construction of the buildings,
facilities, structures, or other improvements are of benefit to the Redevelopment
Project Area by helping to eliminate blight within the Redevelopment Project
Area or providing housing for low- or moderate - income persons; and
b) That no other reasonable means of financing the acquisition of the land or
installation or construction of the buildings, facilities, structures, or other
improvements are available to the community; and
c) That the payment of funds for the acquisition of land or the cost of the buildings,
facilities, structures, or other improvements is consistent with the implementation
plan adopted by the Agency pursuant to Section 33490 of the Redevelopment Law
herein referred to collectively as the "33445 Findings ").
WHEREAS, by the adoption of its Resolution No. ORA -0476 on February 26, 2008,
the Agency Board authorized the issuance of its Orange Merged and Amended
Redevelopment Project Area 2008 Tax Allocation Bonds, Series A (the "2008A Bonds ") to
finance the costs of certain capital projects of benefit to the Redevelopment Project Area,
including a portion of the cost of the Public Improvements; and
WHEREAS, before the Agency Board adopted Resolution No. ORA -0476, the
Agency made available for public inspection a summary report (the "Summary Report"),
which included all of the following: (i) an estimate of the amount of tax increment revenues
allocated to the Agency, which the Agency proposed to use to pay for all or part of the cost
of the capital projects described in the Summary Report; (ii) the facts supporting the
determinations required to be made by the Agency pursuant to Section 33445 of the
Redevelopment Law then in effect; and (iii) the redevelopment purpose for which such tax
increment revenues would be used to pay for said capital projects; and
WHEREAS, before it adopted Resolution No. ORA -0476, the Agency Board,
pursuant to Section 33679 of the Redevelopment Law, held a public hearing with the City
Council with respect to use of tax increment revenues for the capital projects then proposed
to be financed by the issuance of the 2008A Bonds and received evidence concerning the
public benefits therefrom; and
WHEREAS, by the adoption of Resolution No. ORA -0476 and Resolution No.
10257, the Agency Board and the City Council, respectively, determined that there were
sufficient facts supporting the determinations required to be made by the Agency and the
City Council pursuant to Section 33445 of the Redevelopment Law then in effect for the
capital projects described in the Summary Report, including the cost of a portion of the
3
Public Improvements; to wit, that (i) said capital projects are of benefit to the Redevelopment
Project Area; (ii) said capital projects will assist in the elimination of one or more blighting
conditions inside the Redevelopment Project Area and are consistent with the Agency's
adopted Implementation Plan for the Project Area; and (iii) for that portion of said capital
projects to be funded by the Agency, no other reasonable source of financing said portion of
the capital projects is available to the City; and
WHEREAS, subsequent to the adoption of Resolution No. ORA -0476 and
Resolution No. 10257 by the Agency Board and the City Council, respectively, Section
33445 of the Redevelopment Law was amended, in part, by the State Legislature in 2009.
The findings under Section 33445 of the Redevelopment Law that were required to be made
prior to the 2009 amendment of Section 33445 do not differ materially from the current
version of the 33445 Findings. Nevertheless, this Agency Board desires to reaffirm and ratify
its findings and determinations contained in its Resolution No. ORA -0476 and, additionally
to make the findings required by the current version of Section 33445 of the Redevelopment
Law in connection with the proposed additional Agency financial participation in the cost of
the Public Improvements; and
WHEREAS, by its adoption of Resolution No. 10524 on December 14, 2010, the
City Council of the City of Orange applied the 33445 Findings to the proposed additional
Agency financial participation in the cost of the Public Improvements and has found and
determined that there are sufficient facts supporting the determinations required to be made
by the City Council for the Agency's additional financial participation in the increased actual
out -of- pocket financial obligation payable by the City to OCTA under OCTA Amendment
No. 2 and the additional staff and professional costs and expenses that the City might incur;
to wit, that (a) the installation or construction of the Public Improvements are of benefit to
the Redevelopment Project Area by helping to eliminate blight within the Redevelopment
Project Area; (b) no other reasonable means of financing the additional costs associated with
the installation or construction of the Public Improvements are available to the City; and (iii)
the payment of the additional funds for the cost of the Public Improvements is consistent
with the implementation plan adopted pursuant to Section 33490 of the Redevelopment Law;
and
WHEREAS, in furtherance of the Redevelopment Plan for the Redevelopment Project
Area and the public purposes of both the Agency and the City, the Agency and the City desire to
enter into that certain First Amendment to Cooperation and Reimbursement Agreement for the
Provision of Public Improvements of Benefit to the Orange Merged and Amended
Redevelopment Project Area (Quiet Zone Improvements) in the form presented at the meeting
at which this Resolution is adopted (herein referred to as the "First Amendment "), pursuant to
which First Amendment the Agency will pay or reimburse the City an additional sum of not to
exceed $942,823.00, as more particularly set forth in the First Amendment; and
WHEREAS, by its adoption of Resolution No. 10524 on December 14, 2010, the
City Council of the City of Orange has approved the terms and provisions of the First
Amendment; and
El
WHEREAS, the Board of Directors has duly considered all of the terms and
conditions of the proposed First Amendment and believes that the First Amendment is in the
best interests of the Agency and the City and the health, safety, morals and welfare of its
residents, and in accord with the public purposes and provisions of applicable State and local
law and requirements.
NOW, THEREFORE, the Board of Directors of the Orange Redevelopment
Agency resolves, finds and determines, on the basis of the facts set forth in the agenda report
presented to it and any testimony received at the meeting at which this matter was
considered, as follows:
1. The foregoing recitals are true and correct.
2. The findings and determinations required to be made by the Board of
Directors of the Agency under Section 33445 of the Redevelopment Law (as then
constituted), relative to the Public Improvements by the adoption of its Resolution No. ORA-
0476 on February 26, 2008, are hereby affirmed and ratified.
3. The Public Improvements are of benefit to the Redevelopment Project Area;
other than funds already identified and committed by the City Council to the Public
Improvements (including the amount previously committed by the Agency Board by its
adoption of Resolution No. ORA -0501 on June 23, 2009 in the sum of $2,100,000 to the
City's share of the cost of the construction of the Public Improvements), there are no other
reasonable means available to the City to fund the increased actual out -of- pocket financial
obligation payable to OCTA under OCTA Amendment No. 2 and the estimated additional
staff and professional costs and expenses that the City might incur; the payment of funds for
the Public Improvements will assist in the elimination of one or more blighting conditions inside
the Redevelopment Project Area; and the Public Improvements are consistent with the
implementation plan adopted by the Agency pursuant to Section 33490 of the Redevelopment
Law.
4. The First Amendment between the Agency and the City, a copy of which is on
file with the Agency Clerk, is hereby approved, and the Chairman of the Agency Board is
authorized and directed to execute, and the Agency Clerk to attest, said First Amendment on
behalf of the Agency.
5. The officers and employees of the Agency are authorized and directed, jointly
and severally, to do any and all things necessary or advisable in order to effectuate the purposes
of this resolution and to administer the Agency's obligations, responsibilities and duties to be
performed hereunder, and all actions previously taken by such officers and employees in
connection with the Original Agreement or the First Amendment are ratified and approved.
5
ADOPTED this 14" day of December, 2010.
ATTEST:
A-.1a Mu , Agency Clerk
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the 14 day of
December, 2010, by the following vote:
AYES: DIRECTORS: Smith, Cavecche, Dumitru, Bilodeau
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
ABSTAIN (RECUSED): DIRECTORS: Whitaker
Mary E. Mu Agency Clerk
C