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:
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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.
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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:
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San Joaquin Hills
Corridor Agency
By�
Its: Chief Executive Officer_°�
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September 22, 1995
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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
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1987 Ford l -ton flatbed - Unit 9 13 6
1988 GMC utility 4x4 truck - Unit # 148
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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.
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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
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' 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