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HomeMy WebLinkAboutRural Communities Housing Development Corporation 2004-05-13i ■it. SI30E 1 CITY OF UKIAH Out -of -City Water Service Agreement This Agreement is entered into this 13th day of May. 2004, by and between the Rural Communities Housing Development Corporation ( "Customer"), whose mailing address is 237 East Gobbi Street, Ukiah, California, 95482, and the City of Ukiah ( "City "), whose mailing address is 300 Seminary Avenue, Ukiah, California, 95482. Collectively, the City and the Customer shall be referred to in this Agreement as the "Parties ". Recitals 1. Customer has entered into a sales Agreement to purchase property outside of, but adjacent to, the City limits, which is known as APN 002- 101 -17, and as more particularly described in the attached Exhibit A ( "the Property "). 2. The Property is located within the City's sphere of influence but outside its current boundaries. 3. The City currently has a water main along Brush Street adjacent to the Property. 4. Customer is a non - profit public benefit corporation organized and existing to provide housing which is affordable to very low, low and moderate income individuals and families. 5. Customer desires to develop on the Property an apartment complex consisting of approximately 152 -units which will be and remain for the useful life of the complex affordable to persons of very low, low and moderate income as the terms "affordable," and "very low," "low," and "moderate" income are defined by the California Department of Housing and Community Development ( "HCD ") and /or the United States Department of Housing and Urban Development ( "HUD ") ( "the Project ") and desires City water service, because water service is not available from the Millview County Water District. 6. Customer will construct at customer's expense those facilities required to connect to the existing water main along Brush Street as a condition of receiving water service at the Property. 7. The City is willing to provide water service to the Project, because there is a shortage of housing which is affordable to low and moderate income families in the City and the surrounding area, increasing the supply of housing affordable to very low, low and moderate income families is an important policy goal of the City of Ukiah and the State of California, and because Mendocino County has agreed in principle to approve a tax sharing agreement for the Property in connection with its eventual annexation into the City. 8. The City agrees to provide water service limited to the Property for Customer to provide low and moderate income housing, and will not provide water for any other development on the Property or to any other parcels of property under this Agreement. 9. The City will become obligated to provide water to the Property only if and when Customer acquires title thereto and as otherwise provided in this Agreement. 10, Since the Property is located outside the City's boundaries, this out -of -area service Agreement must be approved by the Mendocino County Local Agency Formation Commission ( "LAFCO "). 1 11. LAFCO has the authority to approve this Agreement, because the Property is located within the City's sphere of influence and should under appropriate circumstances, be annexed into the City in the future. This Agreement anticipates a later application for a change of organization to annex the Property into the City of Ukiah. 12. Customer requires an agreement for the provision of water to the Property before an annexation of the Property into the City could receive final approval. For this additional reason, Customer requires an out -of -area agreement approved by LAFCO in order to develop the Project on the Property. 13. Because of the special circumstances described above, including the need for low and moderate income housing and because of valid concerns about securing funding for the Project which are outside the control of the City or Customer, the City is willing by this out -of -area service agreement to provide water to this future development, until such time that annexation of the Property into he City can be completed. 14. Customer agrees to pursue annexation as instructed by City and the LAFCO. NOW, THEREFORE, based upon the above recitals, and the mutual promises contained herein, the Parties herby agree as follows: 1. City will provide water service to the Property, not to exceed 154 water service connections (apartment units) under the following conditions: a. Customer acquires legal title to the Property. b. Customer receives adequate funding commitments for the Project, completes the design of the Project, receives all required approvals to commence construction of the Project, and commences construction of the Project. c. Within the time as specified by the City, Customer completes and submits to the City or to LAFCO, as requested by City, any and all documents necessary to initiate and complete proceedings to annex the Property into the City. The City may, but is not required to, pay any fees or other costs associated with initiating and completing such proceedings. Customer shall pay within such time as specified by City and such fees or costs the City declines to pay. d. The provision of water to the Property is subject to the rules, as defined in paragraph 1.e below, and in any water shortage, to the City's primary obligation to meet the need for water within the City's incorporated limits. e. Customer shall comply with all of the rules, regulations, policies, tariffs, rate schedules, and ordinances (collectively, "rules ") of City (whether currently in effect or as adopted or amended hereafter) that apply generally to the City's provision of water service to residents and customers of the City, including the completion of all required applications for service and the payment of all fees and charges. g. Failure of customer to comply with the requirements in subparagraph 1.e shall subject the Customer to the same remedies and sanctions, including termination of water service, as would apply to a customer who receives service within City's boundaries. Customer shall submit plans for development of the project to the City for review and approval, and shall develop the property in accordance with the plans approved by the City. 2 2. This document contains the entire Agreement between the parties concerning its subject matter. Any and all existing statements or agreements, whether oral or written, or renewals thereof, between the parties hereto, covering the same subject matter, are hereby canceled and superceded by this Agreement, and such prior statement or agreement shall have no further force or effect. 3. Whenever notice to a party is required or permitted by this Agreement, it shall be deemed given when deposited with proper address and postage in the U.S. Mail or when personally delivered to the addresses set forth in the first paragraph of this Agreement. Either party may change the address to which notice must be given under this Agreement by providing notice of the address change as provided in this paragraph. 4. This Agreement shall be governed by the laws of the State of California. Any legal action arising out of this Agreement must be filed in Mendocino County. The parties waive any objections they may otherwise have to jurisdiction or venue in Mendocino County. 5. This Agreement is for the sole and exclusive benefit of the parties who do not intend to create any rights in third parties or to create third party beneficiaries. 6. No waiver by either party of any of the provisions of this Agreement or failure of either party to object to a breach thereof shall constitute a waiver of any other provisions of this Agreement, or of the parties' right to enforce a subsequent breach of the same or a different provision of the Agreement. No waiver shall be deemed a continuing one or bind either party in any way, unless confirmed in writing signed by that party. 7. The signatories to this Agreement have been duly and properly authorized by the party they represent to sign this Agreement on its behalf and their signature on this Agreement is binding upon the party they represent. 8. This Agreement may be executed in one or more duplicate originals bearing the original signature of both parties and when so executed any such duplicate original shall be admissible as proof of the existence and terms of the Agreement between the parties. This Agreement was executed and delivered as of the date first written above in Ukiah, California. RCHDC City Manager City Attorney Date._�- j Approved by LAFCO on May 3, 2004 Date Date 5-- -. `-( .4 ,e yAEZ ,D i fl,E' °-- fr /C E °C Wi4»'Zd 4i-- G ',e`C'O ATTEST: r it(A)eli)ies ""EXCC /y//" 4J --,lCt T-409r 4r,