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1995-0919_SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY_Agr Re Collection of Impact FeesAGREEMENT REGARDING COLLECTION OF IMPACT FEES SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY THIS AGREEMENT REGARDING COLLECTION OF IMPACT FEES is entered into this 19th day of Sept, 1995, by and between the San Joaquin Hills Transportation Corridor Agency and the City of San Juan Capistrano. WHEREAS, San Juan Capistrano ("Member") is a member of the San Joaquin Hills Transportation Corridor Agency ("Agency"), a joint powers authority duly formed pursuant to Government Code Sections 6500 et seq. and a First Amended and Restated Joint Exercise of Powers Agreement Creating the Agency ("JPA"), WHEREAS, the Agency was formed for the purpose of studying, designing, financing, constructing and operating a toll facility in the County of Orange ("Corridor"); WHEREAS, approximately half of the cost of the Corridor is expected to be paid from development impact fees ("DIFS") collected on behalf of the Agency by the Member at the time of the issuance of a building permit with respect to development of land within the area of benefit of the Corridor and remitted to the Agency in accordance with the Major Thoroughfare and Bridge Fee Program attached to the JPA and incorporated therein ("Program"); WHEREAS, in Section 4.3 of the JPA the Member agrees to collect and hold the DIFS in trust for the Agency and the holders of the Agency's bonds and financial. institutions providing credit enhancement with respect to the Agency's bonds and to pay the DIFS to the Agency in quarterly installments, within forty five days after the end of each quarter; WHEREAS, the parties hereto want to modify the procedures for the collection and remittance of DIFS to give additional assurances to the holders of the Agency's bonds and such financial institutions that DIFS will be collected on behalf of and remitted to the Agency in a timely manner; NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the parties hereto agree as follows: SECTION 1. Member shall collect all DIFS in the form of cash, check or cashier's check made payable to the Agency or, if funds have been deposited in trust for payment of fees by developer, the Member shall issue a warrant for those DIFS, and shall remit DIFS collected for the previous week(s) at least monthly to the Agency lockbox at: 0 • San Joaquin Hills Transportation Corridor Agency Department No. 7537 Los Angeles, CA 90084-7537 After July 1, 1995, the remittance address is: San Joaquin Hills Transportation Corridor Agency Trust Account Number 8116158-019 c/o First Interstate Bank of California Corporate Trust Department 707 Wilshire Blvd., WI 1-1 Los Angeles, CA 90017 SECTION 2. Member hereby ratifies and reaffirms its obligations under the JPA, the Program and local law to collect the DIFS in trust and to remit the DIFS to the Agency, except as modified herein. SECTION 3. In the event that the Agency is unable to convert any instrument used to pay the DIFS to cash for any reason, the Agency shall immediately provide telephonic notice of such nonpayment, and on the same day, mail written notice of such nonpayment, to the Member which collected the DIFS. Upon such telephonic notice, the Member shall endeavor to not undertake any further activity to process or otherwise approve the development or any permits relating thereto. The Member shall not, for any reason, be liable to the Agency should the Member fail to cease such activities. The Agency shall defend and indemnify any Member for and against any claim or legal action arising from that Member's cessation of such activities. The Agency shall be directly responsible for collecting any DIFS after providing notice of nonpayment as set forth in this Section and the Member shall cooperate with Agency in such collection effort, including but not limited to assigning or authorizing Agency the right to directly collect unpaid DIFS on behalf of the Member. The Agency shall provide written notice to the Member that the DIFS have been paid prior to the Member's resumption of any activity in connection with approval of the development. 0 0 IN WITNESS WHEREOF, the parties hereto have executed this Agreement Regarding Collection of Impact Fees as of the date fust -above written. San J By: Its:. San Joaquin Hills Corridor Agency By� Its: Chief Executive Officer_°� o:euksafce.d« 0 September 22, 1995 Use 1776 � • uunnm 1961 1776 Ms. Kathy Besnard Manager of Administrative Services Transportation Corridor Agencies 201 East Sandpointe Avenue, Suite 200 P. O. Box 28870 Santa Ana, California 92799-8870 Re: Collection of Develooer Impact Fees Dear Ms. Besnard: MEMBERS OF THE CRY COUNGL OOLIERE CAMPBELL WYATTNART OLJONES CAROLYN NAB11 DAVID SWERDUN WY MANAGER GEORGE SCARBOROUGH At their meeting of September 19, 1995, the City Council of the City of San Juan Capistrano approved agreements with the Foothill/Eastern Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency which institute new procedures for collecting and remitting development impact fees. The Agreements have been signed by the City Manager and two copies each are enclosed. Upon signature by the Chief Executive Officer of each Agency, please return a copy to the City Clerk's office. Thank you for your assistance in this matter. Very truly yours, Cheryl Joh on. City Clerk Enclosure cc: Director of Administrative Services 32400 PASEO ADELANTO. SAN JUAN CAPISTRANO. CALIFORNIA 92675 0 (714) 493-1171 Full size 1/2 -ton 2 -wheel drive pickup 1 -ton flatbed truck with lift gate Mid-size 4 -wheel drive utility truck 9 1987 Ford 1 -ton flatbed - Unit #135 1987 Ford l -ton flatbed - Unit 9 13 6 1988 GMC utility 4x4 truck - Unit # 148 • • • :: / : UI r. • : • /1 :11 WN M@iFF4,141101 As set forth in the Report dated September 19, 1995, from the Engineering and Building Director, the Cooperative Agreement between the City of San Juan Capistrano and the San Joaquin Hills Transportation Corridor Agency (TCA) was approved to widen the 800 -foot, two-lane portion of Rancho Viejo Road between Village Road and Trabuco Creek. The work will be performed concurrently with the Corridor project by the TCA's contractor, California Corridor Constructors, for a cost of S 107,986 with the use of advanced funding received from the Orange County Transportation Authority MRAP Program. The City Manager was authorized to execute the Agreement on behalf of the City. Council Member Swerdlin expressed appreciation to Council Members Jones and Campbell and Mr. Huber for their efforts in this matter. As set forth in the Report dated September 19, 1995, from the Administrative Services Director, the Agreements between the City of San Juan Capistrano and the Foothill/Eastem Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency were approved to modify the procedures for collecting Developer Impact Fees. To mitigate any potential impacts from the County's bankruptcy situation, the modifications will require all fees collected by the City on behalf of the Transportation Corridor Agency to be remitted on separate checks and forwarded to the Transportation Corridor Agency directly on a monthly basis rather than co -mingled with City funds. The City Manager was authorized to execute the Agreements on behalf of the City. ur•;:; r; • t; ul •. :. i :. .• ■I •; �.: rel .r r rl;•: • •-.34MM021.1 As set forth in the Report dated September 19, 1995, from the Engineering and Building Director, the request by the Mission San Juan Capistrano was approved for the temporary street closure of Ortega Highway from Camino Capistrano to El Camino Real from 2:30 p.m. to 3:15 p.m. on Saturday, October 7, 1995, for the proposed historical re-enactment event. City Council Minutes -6- 9/19/95 • ' AGENDA ITEM September 19, 1995 TO: George Scarborough, City Manager FROM: Cindy Pendleton, Administrative Services Director SUBJECT: Consideration of Agreement Regarding Collection of Developer Impact Fees (Foothill Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency) RECOMMENDATION: By Motion, approve the agreements and authorize the City Manager to execute the agreements. SITUATION: Currently, Developer Impact Fees collected by the City of San Juan Capistrano on behalf of the Transportation Corridor Agencies (TCA) have been collected in accordance with the Major Thoroughfare and Bridge Program as part of the City's membership in the Agency. This program provides for fees to be collected at the time of building permit issuance along with other City fees. These fees are held by the City and forwarded at the end of each quarter. These fees are remitted and collected in a timely manner and in accordance with TCA policies. In light of the recent Orange County bankruptcy, the TCA has taken steps to insure the protection of the development impact fees and a more steady cash flow. One step in accomplishing their goal is a modification to the procedures used for collection of Developer Impact Fees by various agencies. These new procedures require that all fees collected by the City on behalf on the TCA be remitted on separate checks issued in favor of the TCA and that these checks be forwarded to the TCA directly rather than co -mingled with City funds. This process is similar to that of School Fees and any other agency fee required to be collected at building permit issuance. Additionally, this manner of collection and remittance will give additional assurances to the holders of the Agency's bonds and such financial institutions with which the Agency has dealings. Draft agreements to accomplish this purpose are attached. Staff recommends the City Council approve the agreements and authorize the City Manager to execute the agreements. COMMISSIONS/COMMITTEE REVIEW AND RECOMMENDATIONS: None FOR CITY COUNCIL AGE ° : DI I "]-� ' AGENDA ITEM -2- September 19, 1995 FINANCIAL CONSIDERATIONS: Currently, Administrative Services maintains trust accounts for these funds. This new process will not cost the City any additional staff time and will most likely result in reduced staff time once implemented. NOTIFICATION: Ms. Kathy Besnard Manager of Administrative Services 201 E. Sandpointe Ave., Suite 200 P.O. Box 28870 Santa Ana, California 92799-8870 ALTERNATE ACTIONS: By Motion, approve agreements and authorize the City Manager to execute agreements. 2. Do not approve agreement and direct staff to continue collecting fees in accordance with the Major Thoroughfare and Bridge Fee Program. 3. Request additional information from staff. RECOMMENDATION: By Motion, approve agreements and authorize the City Manager to execute agreements. Respectfully Submmitte , Cyn is L. Pendleton Administrative Services Director Attachments 1. Agreement Regarding Collection of Impact Fees - Foothill/Eastern TCA 2. Agreeemm Regarding Collection of Impact Fees - San Joaquin Hills TCA