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(1) After the first public hearing held pursuant to section 3.904(1), the City Council shall approve, reject, or modify the recommendations contained in the Director’s report. The City Council’s decision shall be embodied in a resolution. If a reimbursement district is established, the resolution shall include the Director’s report as approved or modified, and specify that payment of the reimbursement fee, as designated for each parcel, is a precondition to receiving city permits for development of that parcel as provided for in section 3.910.

(2) When the applicant is other than the City, the resolution shall approve an agreement with the applicant pertaining to the reimbursement district. The agreement shall be contingent upon the improvements being accepted by the City. The agreement, at a minimum, shall contain the following provisions:

(a) The boundaries of the reimbursement district;

(b) The methodology for imposing a fee within the district;

(c) A requirement that the public improvement(s) meet all applicable city standards;

(d) The estimated total amount of potential reimbursement to the applicant;

(e) A requirement that the actual total cost of the improvement shall not exceed the estimated cost by more than ten (10%) percent;

(f) The annual fee adjustment set by the City Council, if any;

(g) A guarantee by the applicant of the public improvement(s) for a period of 12 months after the date of installation;

(h) An indemnification clause requiring the applicant to defend, indemnify, and hold harmless the City from any and all losses, claims, damage, judgments, or other costs or expenses arising as a result of or related to the City’s establishment of the district, including the City’s costs or expenses related to collection of the reimbursement fee pursuant to section 3.910;

(i) Acknowledgment by the applicant that the city is not obligated to collect the reimbursement fee from affected developers, and that the right to reimbursement shall be derived solely under the provisions of this section;

(j) The expiration date of the district; and

(k) Other provisions as the City Council determines necessary and proper to carry out the provisions of this section.

(3) If a reimbursement district is established by the City Council, the date of the formation of the district shall be the date that the City Council adopts the resolution forming the district.

[Added Sec. 7, Ord. No. 2007-84, Apr. 19, 2007.]