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RES-10267 Authorization of Joint Community Facilities AgreementRESOLUTION NO. 10267 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT COMMUNITY FACILITIES AGREMENT. WHEREAS, the City Council (the City Council) of the City of Orange (Orange) has instituted proceedings under the Mello-Roos Community Facilities Act of 1982 (the Act) to establish City of Anaheim Community Facilities District No. 08-1 (Platinum Triangle) (the Community Facilities District), to authorize the levy of special taxes (the Special Taxes) upon the land within the Community Facilities District and to issue bonds (the Bonds) secured by the Special Taxes, the proceeds of which are to be used to finance certain public facilities; and WHEREAS, the facilities proposed to be financed by the Community Facilities District include certain facilities to be owned and operated by the Anaheim and certain facilities to be owned and operated by Orange (the Orange Facilities); and WHEREAS, Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that creates the community facilities district only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to that Section; and WHEREAS, Section 53316.2 of the Act further provides that at any time prior to the adoption of the resolution of formation creating a community facilities district or a resolution of change to alter a district, or a resolution or resolutions authorizing issuance of bonds pursuant to Section 53356 of the Act, the legislative bodies of two or more local agencies may enter into a joint community facilities agreement pursuant to the Act to exercise any power authorized by the Act if the legislative body of each entity adopts a resolution declaring that such a joint agreement would be beneficial to the residents of that entity; and WHEREAS, a joint community facilities agreement by and between Orange and Anaheim that provides for the financing of the Orange Facilities through the issuance of Bonds by the Community Facilities District (the Joint Community Facilities Agreement) has been reviewed by the City Council; and WHEREAS, the City Council desires to authorize the execution and delivery of the Joint Community Facilities Agreement.NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange determines and orders as follows:Section 1.The City Council finds that foregoing recitals are true Section 2. The City Council hereby declares that the Joint Community Facilities Agreement will be beneficial to the residents of Orange. Section 3. The Joint Community Facilities Agreement, in the form submitted at this meeting and made a part hereof as though set forth herein, is approved. The Mayor of Orange and the City Clerk and such other officer or employee of Orange as the Orange City Manager may designate (the Authorized Officers) are hereby authorized in the name of the City to execute the Joint Community Facilities Agreement in the form submitted at this meeting and any other documents necessary for its implementation. Section 4. The Authorized Officers and agents of Orange are hereby authorized and directed to take all actions and do all things that they may deem necessary or desirable to accomplish the purposes of this Resolution to the extent such actions are consistent with the provisions of this Resolution. Section 5. The City Council has directed that its comments relating to the fair share percentages of traffic improvements reflected in the Joint Community Facilities Agreement be attached as an addendum to this Resolution. Such comments are attached and incorporated as though fully set forth herein. Section 6.This Resolution shall take effect immediately upon its adoption. ADOPTED this 25th day of March, 2008 ATTEST: I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 25th day of March, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCILMEMBERS: Smith, Murphy, Cavecche, Dumitru, Bilodeau COUNCILMEMBERS: None COUNCILMEMBERS: None COUNCILMEMBERS: None 2 ADDENDUM TO RESOLUTION NO. 10267 Council Comments of March 25,2008) Mayor Cavecche: Confirmed with the City Attorney that under the EIR for the Platinum Triangle that the project still has to fund the mitigation measures and this is just one way to get the funding. But whether funded by the JFCA or not, the project is still required one way or the other to fund the improvements. Councilmember Smith: I have a question on the enhancement of the Chapman and Main intersection. It suggests that businesses at that intersection would be removed and I don't think that is appropriate at one of our main intersections, especially with the efforts we are making in our General Plan and overall business plan to enhance business on south Main Street between Chapman and LaVeta. I believe the designated fair share for that enhancement is 25%, which doesn't sound like it would be an adequate amount of funding to cover the removal of businesses and the widening of that intersection, which we have spent a lot of money on. My basic disagreement with that premise and some other intersections too is that I am absolutely not in favor of our businesses going away so that businesses in another city can be enhanced. And the most striking example of that is the intersection of Chapman and Main. When would we review that again to be able to give adequate comment and disagreement, if my colleagues were to agree with me? City Attorney David De Berry: The project to improve the intersection would ultimately have to be approved by the City. The City Council has reiterated some of staff's concerns. There is a question as to whether we even want to do the improvement as set forth in the EIR and why should the City be removing its businesses to support Anaheim's businesses. Mayor Cavecche: There is also mention of the connection of Collins with a bridge over the Santa Ana River to the AR TIC station. The City has been very strong in its position that that is not something we would allow to happen. Councilmember Bilodeau: Looking at the 10 intersections and the percentages provided in terms of level of impact from Anaheim's projects - they range from 2% to 40. 8%. The 2%, for example, is at the intersection of Main and Struck. And that would mean that Anaheim would provide 2% of the improvement and Orange would have to provide 98%. Knowing how our budget is going, we wouldn't have the money to fund that improvement. It seems to me the appropriate thing to do is to ask Anaheim to front the funds on all these improvements and have some sort of reimbursement mechanism for them, if they're really interested in providing these improvements to the City of Orange. 3 I don't know if there's any way to get that language in this agreement or not, or if Anaheim would even agree to that. To me, that would be the logical way. Obviously, they want their environmental documents to be sound, and the only way these improvements will get built is if the money is fronted. Mayor Cavecche: Questioned the City Attorney as to whether approving the JFCA means that that the City agrees with the funding percentages. City Attorney De Berry: Noted that the percentages come from the EIR and that staff has objected to at least some of the funding percentages previously. The City Council could add its comments to the Resolution to make it clear that it disagreed with the funding percentages. Mayor Cavecche: We can look at the Platinum Triangle in several different ways. We can try to fight it, but I don't know how successful we would be. Or we can try to take advantage of it on our side of the river with increased economic development, making sure that the impacts to our residents don't happen or they are mitigated. Luckily, where we meet up with Anaheim at the river, it is largely industrial and office space right now. I just want to make sure that the City of Orange is front and center in working with Anaheim. If anything, we are helping to frame the discussions on what happens on our side of the river as well and not just have us look up and have it done and not being able to take advantage. Weare kind of heading into a little bit of a downturn economically and this has the possibility to help our City. We need to be front and center in making sure Anaheim understands that we can take advantage of what happens over there. And I want to make sure we do - not only for these intersections, but the entire Katella Corridor. I see their development funding quite a bit of work along there.MOTION - Approve Resolution 10267 with the understanding that this is just a funding mechanism; that the City Council's comments be included as an addendum to the Resolution; and that it is stated for the record that the City doesn't agree with the percentages at Main and Chapman and the other intersections that are still not resolved.Councilmember Smith - wanted to make sure the City immediately responds to Anaheim with the Council comments and suggested that one person, the City Manager,take the lead on this issue.Councilmember Bilodeau - reiterated that all fair share percentages, not just Main and Chapman, are up for negotiation.4