CVWD - AD 89-2 Public Imp 89AGREEMENT FOR CONSTRUCTION
OF PUBLIC IMPROVEMENTS
THIS AGREEMENT is made and entered into by and among the CITY OF
LA QUINTA ("the CITY"), the LA QUINTA REDEVELOPMENT AGENCY ("the
AGENCY"), and the COACHELLA VALLEY WATER DISTRICT ("the DISTRICT").
A. The CITY is a municipal corporation duly organized pursuant
to the general laws of the State of California.
B. The AGENCY is a redevelopment agency, a public body,
corporate and politic, duly created, established and authorized to
transact business and exercise its powers, all under and pursuant to
the Community Redevelopment Law, California Health and Safety Code
section 33000, et seq.
C. The DISTRICT is a county water district organized and
existing pursuant to California Water Code section 30000, et. seq.
D. The CITY, the AGENCY and the DISTRICT wish to cooperate in
undertaking a project for the construction of certain public
improvements within the CITY, including domestic water facilities,
sanitary sewer facilities, street improvements, and storm drains;
each intends to contribute to the cost of some or all of these
improvements through direct financial contribution, through
assessment district financing and/or through the sale of bonds as
hereinafter described.
E. The CITY, the AGENCY and the DISTRICT desire to enter into
this Agreement to undertake and finance said project pursuant to
sections 10109-10111 of the Municipal Improvement Act of 1913 set
forth in California Streets and Highways Code section 10000, 'et seq.
("the Act").
THEREFORE, IT IS AGREED:
ASSESSMENT DISTRICT PROCEEDINGS, FUNDING
1. Formation
The CITY shall form an Assessment District as shown on the
attached Exhibit "A" pursuant to the Act fo finance those portions of
the project described in the attached Exhibit "B."
2. Funds
Upon adoption of a resolution by the City Council declaring
its action on the Engineer's Report and Assessment, confirming the
proposed assessment, ordering the project to be constructed and
installed and causing the improvement bonds (representing unpaid
assessments) to be sold, upon the receipt of paid assessments and the
proceeds of the bond sales, the following funds shall be established
and maintained by the CITY from the sources and for the purposes
described:
a. Improvement Fund
Into this Fund shall be deposited all net proceeds
received by the CITY pursuant to the assessment district assessments
and bond sales and any cash payments by the DISTRICT. This fund
shall be used to pay the cost of construction of all improvements
described in Exhibit "B".
b. Tax Allocation Bond Fund
The AGENCY shall transfer to the CITY, monies which
AGENCY has obtained or shall obtain from the issuance and sale of tax
allocation bonds by the AGENCY. Said money shall be kept by the CITY
in a "Tax Allocation Bond Fund" and, except as provided in the
following Subparagraph C, shall be used to pay the cost of
constructing those improvements described on Exhibits "C-1" and 11C-2"
(Street Improvements and Storm Drains).
C. Sewage Ejector Pump Contingency Fund
The CITY, upon receipt of the monies obtained from the
issuance and sale of tax allocation bond by the AGENCY shall retain
an amount of FIFTY THOUSAND DOLLARS ($50,000.00) for the purpose of
providing ejector pumps for the developed parcels where sewage will
not flow by gravity from the point of the building connection to the
sanitary sewers constructed pursuant to this Agreement. Said funds
shall be administered by the CITY. Appropriate qualifying criteria
shall be established by the CITY and the DISTRICT for the
disbursement of these funds.
FINANCING PROVISIONS
3. DISTRICT'S Obligation
The DISTRICT'S obligation to pay the costs and expenses of
the project shall be limited to domestic water facilities. The
DISTRICT shall budget and contribute up to a total of $1,000,000.00
per fiscal year, starting with the fiscal year 1988-1989 toward the
total cost of the domestic water facilities to be constructed as part
of the project and shown on Exhibit "D". If the total cost and
expenses of constructing domestic water facilities exceed the amount
of $1,000,000.00 in any one fiscal year, the CITY shall advance the
difference, at no interest, and shall be repaid by the DISTRICT as
and when funds are available from said annual $1,000,000.00 budget
for construction of said facilities.
4. CITY'S Obligation
The obligation of the CITY to pay the costs and expenses of
the project shall be limited obligation, payable solely from the
Improvement Fund.
5. AGENCY'S Obligation
The obligation of the AGENCY to pay the costs and expenses of the
project shall be limited to the monies it pays to the CITY from the
sale of tax allocation bonds.
CONSTRUCTION PROVISIONS
6. Plans and Specifications
The DISTRICT shall review and approve all plans,
specifications, drawings and revisions thereof for the construction
and installation of all domestic water and sanitary sewer
improvements prior to construction. The DISTRICT shall be reimbursed
for the engineering and drafting expense and overhead for the
sanitary sewer improvements described in Exhibit "B" from monies, if
any, remaining in the Assessment District's construction contingency
fund unless the assessment district proceedings are not completed, in
which event the DISTRICT shall bear its own engineering and drafting
expense and overhead.
7. Inspection
The DISTRICT shall provide normal construction inspection
services in connection with construction and installation of all
domestic water at no cost to the CITY, the Assessment District, or
the AGENCY. The CITY, from monies, if any, remaining in the
Assessment District's construction contingency fund shall reimburse
the DISTRICT for its normal construction inspection and services in
connection with construction and installation of the sanitary sewer
improvements described in Exhibit "B".
8. Progress Payments
The DISTRICT shall review each progress payment request by
contractor for the construction and installation of domestic water
and, subject to the annual fiscal limitation regarding domestic water
facilities set forth in Paragraph 3-b above, upon approval of said
request, shall pay to CITY the amount approved for the portion of the
project being constructed and installed at the DISTRICT's expense
within twenty (20) days of said approval. The CITY shall thereupon
pay the amount authorized by the DISTRICT to the contractor.
9. Completion
Upon completion of the construction and installation of the
domestic water and sanitary sewer facilities, the CITY shall file a
Notice of Completion for recording in the Office of the County
Recorder. Upon formal written acceptance thereof by the DISTRICT,
the CITY shall execute all documents necessary for the conveyance of
title to said facilities to the DISTRICT. Upon delivery of said
documents to the DISTRICT, said facilities shall become a part of the
DISTRICT's domestic water and sanitary sewer systems, as appropriate,
and the DISTRICT shall thereafter operate and maintain same.
CONDITIONS TO WATER AND SEWER SERVICE
10. DISTRICT'S Rights and Duties
The DISTRICT shall have the following rights and duties
regarding annexations, connection and facilities fees:
a. Annexation
The DISTRICT shall annex parcels into appropriate
improvement districts upon a request for actual services by the
property owner and upon payment of the appropriate fees and charges
as set forth below.
b. Connection Charges
A condition to service shall be payment of any applicable
connection charge, including the cost of installation of a lateral
connection or the relocation of a lateral where appropriate or
necessary.
C. Facilities Fees
A condition to service shall be payment of all required
domestic water and/or sewage treatment facilities fees or capacity
charges which are in existence at the time that service is requested.
MISCELLANEOUS PROVISIONS
11. Effective Date
This Agreement shall become effective upon the adoption by
the City Council of a resolution confirming assessments and upon the
receipt of sufficient funds by the CITY, from paid assessments and
from the sale of improvement bonds, when added to funds received from
the AGENCY and considering the financial obligations of the DISTRICT,
shall constitute a sufficient total amount to pay all the costs and
expenses of construction and installation of the project, including
incidental expenses. The foregoing notwithstanding, the obligation
of the DISTRICT to pay its own costs of engineering and drafting and
overhead attributed thereto, shall become effective upon the
initiation of special assessment proceedings by the CITY even if the
balance of this Agreement does not become effective.
12. Termination
If for any reason the Assessment District or any of the special
assessment proceedings or the issuance and sale of improvement bonds
are invalidated by a court of competent jurisdiction, this Agreement
shall be automatically terminated.
13. Notice
Any notice authorized or required to be given to the CITY
shall be deemed duly and properly given if sent to the CITY by
registered or certified mail, return receipt requested to:
CITY OF LA QUINTA
P.O. Box 1504
La Quinta, California 92253
ATTENTION: City Manager
or personally delivered to the CITY at such address or other address
specified to the AGENCY and the DISTRICT in writing by the CITY.
Any notice authorized or required to be given to the AGENCY
shall be deemed duly and properly given if sent to the AGENCY by
registered or certified mail, return receipt requested to:
THE LA QUINTA REDEVELOPMENT AGENCY
P.O. Box 1504
La Quinta, California 92253
ATTENTION: Executive Director
or personally delivered to the AGENCY at such address or other
address specified to the CITY and the DISTRICT in writing by the
AGENCY.
Any notice authorized or required to be given to the
DISTRICT shall be deemed duly and properly given if sent to the
DISTRICT by registered or certified mail, return receipt requested to:
COACHELLA VALLEY WATER DISTRICT
P.O. Box 1058
Coachella, California 92236
ATTENTION: Tom Levy
General Manager, Chief Engineer
or personally delivered to the DISTRICT at such address or other
address specified to the CITY and the AGENCY in writing by the
DISTRICT.
14. Entire Agreement
This Agreement represents the entire integrated agreement
among the CITY, the AGENCY, and the DISTRICT, supersedes all prior
negotiations, representations, or agreements, either written or
oral. This Agreement may only be modified by a writing signed by the
CITY, the AGENCY, and the DISTRICT.
15. Governing Law
This Agreement shall be governed by the laws of the State
of California.
16. Successors and Assigns
The provisions of this Agreement shall inure to and be
binding upon each of the parties to this Agreement and their
successors and assigns.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly
authorized by the CITY on , 1989, by the AGENCY on
1989, and by the DISTRICT on ,
1989.
CITY OF LA QUINTA
By
LA QUINTA REDEVELOPMENT AGENCY
By
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JOHN J. PEN , Ch an
COACHELLA VALLEY WATER DISTRICT
By --,� f%�
TOM LEVY, General Manager
Chief Engineer ,
ATTEST:
BERNADINE SUTTON, Secretary
PROPOSED BOUNDARIES
OF
ASSESSMENT DISTRICT NO. 89 - 2
CITY OF LA QUINTA
RIVERSIDE COUNTY, CALIFORNIA
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