Report Prepared by: Craig J. Cornwell, City Attorney
Title
SUBJECT: Consideration of the First Reading of an Ordinance Amending Chapters 15.08 and 15.40 of the Merced Municipal Code to Extend the Time During Which the City Will Refund Certain Payments for Water and Sewer Lines to the University of California, Merced
REPORT IN BRIEF
Considers introducing an Ordinance that proposes revisions to Chapters 15.08 and 15.40 of the Merced Municipal Code to Extend the time during which the City will refund certain payments for water and sewer lines to the University of California, Merced.
RECOMMENDATION
City Council - Adopt a motion:
A. Introducing Ordinance 2580, an Ordinance of the City Council of the City of Merced, California, Amending Chapters 15.08 and 15.40 of the Merced Municipal Code to Extend The Time During Which The City Will Refund Certain Payments for Water and Sewer Lines To The University of California Merced; and,
B. Setting the Ordinance for a second reading and adoption.
Body
ALTERNATIVES
1. Introduce and approve first reading of the Ordinance as recommended by staff; or,
2. Provide direction on specific revisions to the Ordinance; or,
3. Request additional information; or
4. Continue the matter to a date certain; or
5. Decline to act.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
On or about October 1, 2003, the City of Merced and the Regents of the University of California entered into the Permanent Financing Capital Facilities Fee Agreement (“Agreement”) to facilitate financing for the construction of City water and sewer infrastructure serving the UC Merced campus.
Under the Agreement, the Regents agreed to fund the debt service associated with the Project, with the final payment scheduled for August 2033. In exchange, the City agreed to provide a reimbursement credit to the Regents in the event third-party users connected to the City's water and sewer systems prior to that date. To date, however, no third-party users have connected to the infrastructure funded under this Agreement.
On October 16, 2023, the City and the Regents executed Amendment No. 1 to the Agreement, which extends the reimbursement period by an additional ten (10) years.
Ordinance No. 2580 reflects this amendment by updating the relevant provisions of the Merced Municipal Code to extend the City's reimbursement obligation through August 2043, consistent with the terms of Amendment No. 1.
ATTACHMENTS
1. UC Merced Reimbursement Ordinance
2. UC Merced Reimbursement Ordinance (Redline)
3. Permanent Financing Capital Facilities Fee Agreement Dated 10/1/2003