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Ordinance No. Page 12 2. To be eligible for reimbursement, the following must be satisfied: a. The developer is eligible for credit under Section 3.26.070 of this chapter; and b. The credit due exceeds the required transportationtraffic development fee. B. Development or Other Agreement. The terms of a written development or other agreement regarding reimbursement for transportationtraffic improvements shall supersede the terms of this section. C. Time and Manner of Reimbursement. 1. The community development director shall determine the exact amount of reimbursement at the time the improvements are accepted by the city. 2. Until repaid, the reimbursement amount shall accrue simple interest commencing upon acceptance of the improvements by the city. Simple interest shall accrue each year on January 1st in an amount equal to the percentage change to the Engineering News Record Construction Cost Index for the San Francisco—Bay Area. Reimbursement payments will be applied first to interest and then to principal. 3. The total amount of reimbursement, net of credits, shall be set one time upon acceptance of the transportationtraffic improvements. The annual percentage amount of reimbursement shall be set one time, upon acceptance of the transportationtraffic improvements, by establishing a percentage equal to: the percentage value of the reimbursement amount compared to the value of all transportationtraffic improvements; such set percentage shall then be multiplied by the total of all transportationtraffic development fees collected in the preceding year to produce a pro rata payment for each year. Example: The total transportationtraffic improvements to be funded by the transportation traffic development fee in year one cost $50,000,000.00; developer builds an improvement valued at $10,000,000.00 and is entitled to a$5,000,000.00 reimbursement. Developer's reimbursement amount is 10 percent of the cost of all improvements, so developer is entitled to 10 percent of the transportationtraffic development fees collected each year, irrespective of whether the value of the total transportation traffic improvements increases or decreases in subsequent years (e.g., if$5,000,000.00 in transportationtraffic fees are collected in year two, the developer is entitled to 10 percent or$500,000.00, and interest accrues on the remaining $4,500,000.00). Developer should receive full reimbursement, with interest, upon build-out, subject to adjustments as provided in subsection (C)(4) of this section. 4. In the event that the amount to be reimbursed to developers pursuant to this section, or pursuant to a development or other agreement, exceeds the amount of transportationtraffic development fees received by the city in the preceding calendar year, the city council shall take action to apportion the available fee revenue to developers entitled to reimbursement pursuant to this section in a manner which the council determines is reasonable for that calendar year. 5. The city council may elect, in its absolute discretion, to provide reimbursement at a faster rate than provided in this section, based upon fees collected and available. 6. The reimbursement shall be paid one time each calendar year. 7. The right to reimbursement shall not run with the land, but shall be personal to the developer. The developer may assign his or her right to reimbursement to another by filing a written notarized assignment with the city clerk. It is the developer's or assignee's responsibility to keep the city clerk advised of a current address. If the city cannot locate a developer or assignee to send a reimbursement payment after reasonable diligence, the amount of the reimbursement for that year is forfeited, and the unclaimed funds shall be returned to the transportation traffic development fee fund.