HomeMy WebLinkAbout12 AGREEMENT BETWEEN CITY AND SUCCESSOR AGENCYAgenda Item 12
Reviewed:
/~C~ENDA F:EP(JRT City Manager
Finance Director ~3/A
MEETING DATE: MARCH 20, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: CITY MANAGER'S OFFICE
SUBJECT: AGREEMENT BETWEEN THE CITY AND SUCCESSOR AGENCY FOR
ADMINISTRATIVE SUPPORT PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34171 AND SUCCESSOR AGENCY APPROVAL OF
AN ADMINISTRATIVE BUDGET PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34177 (j}
SUMMARY
Successor Agency Approval is requested of an Administrative Budget and authorization
for the City and Successor Agency to enter into an agreement for administrative support
and reimbursement for such services.
RECOMMENDATION
1. It is recommended that the City Council approve and authorize the City to enter in an
Agreement for Reimbursement of Costs and City/Successor Agency Operations
Loan with the City acting as Successor Agency to the Tustin Community
Redevelopment Agency.
2. It is recommended the City acting as the Successor Agency to the Tustin
Community Redevelopment Agency ("City Successor Agency") take the following
actions:
A. Adopt Resolution No. 12-04 approving an Administrative Budget pursuant to
California Health and Safety Code Section 34177 (j).
B. Approve and authorize the Successor Agency to enter into an Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan with the
City for reimbursement of costs incurred by the City to support Successor
Agency operations and obligations consistent with the Administrative Budget
approved by the Successor Agency. The Successor Agency shall also be
Agenda Report
March 20, 2012
Page 2
authorized to enter into any agreements necessary to provide administrative
support services as identified in the Administrative Budget attached hereto.
(Note that the above actions by the City Successor Agency shall not become effective
for three business days, pending any request for review by the California Department of
Finance (DoF). If DoF requests review of the City Successor Agency action, it shall
have 10 days from the date of its request to approve the City Successor Agency action
or return it to the Board for reconsideration, and the action, if subject to review by DoF,
shall not be effective until approved by DoF).
BACKGROUND
Health and Safety Code Section 34177(j), as modified by the Supreme Court's opinion
in the matter of California Redevelopment Association, et al. v. Ana Matosantos, et al.,
Case No. S194861, requires the Successor Agency to the Tustin Community
Redevelopment Agency (referred to herein as "Successor Agency") to prepare a
proposed administrative budget covering the period from February 1, 2012 through
June 30, 2012 and submit it to the Oversight Board far approval. According to Health
and Safety Cade Section 34177Q), the Administrative Budget is to include all of the
following: (i) estimated amounts of the Successor Agency's administrative costs for the
up-coming six month fiscal period; (ii) the proposed sources of payment for the costs
identified in (i); and (iii) proposals for arrangements for administrative and operations
services provided by the city, county, city and county, or other entity.
Attached is the proposed Successor Agency Administrative Budget which was reviewed
and approved by the Oversight Board of the Successor Agency on March 13, 2012,
under Health and Safety Code 34177(k). The Successor Agency will provide the
administrative cost estimates from the approved Administrative Budget that are to be
paid from property tax revenues deposited into the Redevelopment Property Tax Trust
Fund for the six-month period through June 30, 2012 to the County of Orange Auditor-
Controller.
Also reviewed and approved by the Oversight Board on March 13, 2012, pursuant to
Health and Safety Cade Section 34180 (h), is an Agreement for Reimbursement of
Costs and City/Successor Agency Operations Loan. To ensure provision of the
Agenda Report
March 20, 2012
Page 3
necessary services from the City to support Successor Agency responsibilities in
winding down the activities of the former community redevelopment agency and the
proposed administrative budget, it is necessary that the City and the Successor Agency
enter into an agreement for reimbursement of costs incurred by City to support
Successor Agency operations and obligations.
,~ , ,
Christine Shingleton ~
Assistant Executive [director
Successor Agency of the Tustin
Community Redevelopment Agency
Attachments: 1. Resolution No. 12-04 Approval of Administrative Budget
2. Agreement for Reimbursement of Costs and City/Successor Agency
Operations Loan
Attachment 1
Resolution No. 12-04
Approval of Administrative Budget
SUCCESSOR AGENCY
TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY
RESOLUTION NO. 12-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA ACTING AS SUCCESSOR
AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY ADOPTING AN
ADMINSTRATIVE BUDGET PURSUANT TO CALIFORNIA
HEALTH AND SAFETY CODE SECTION 34177 OF
PART 1.85 OF THE DISSOLUTION ACT
The City of Tustin acting as Successor Agency to the Tustin Community
Redevelopment Agency finds, determines and declares as follows:
A. The Tustin Community Redevelopment Agency ("Agency") was established as a
community redevelopment agency that was previously organized and existing under
the California Community Redevelopment Law, Health and Safety Code Sections
33000, et seq. ("CRL"), and previously authorized to transact business and exercise
the powers of a redevelopment agency pursuant to action of the City Council ("City
Council") of the City of Tustin("City"); and
B. Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health
& Safety Code, which laws cause the dissolution and wind down of all
redevelopment agencies ("Dissolution Act"); and
C. On December 29, 2011, in the petition California Redevelopment Association v.
Matosantos, Case No. S194861, the California Supreme Court upheld the
Dissolution Act and thereby all redevelopment agencies in California were dissolved
as of and on February 1, 2012 under the dates in the Dissolution Act that were
reformed and extended thereby ("Supreme Court Decision"); and
D. The Agency is now a dissolved community redevelopment agency pursuant to the
Dissolution Act; and
E. By a Resolution No. 11-71 considered and approved by the City Council at an open
public meeting on September 20, 2011, the City chose to become and serve as the
"successor agency" to the dissolved Agency under the Dissolution Act; and
F. As of and on and after February 1, 2012, the City serves as the "Successor Agency"
will perform its functions as the successor agency under the Dissolution Act to
administer the enforceable obligations of the Agency and otherwise unwind the
Agency's affairs, all subject to the review and approval by aseven-member
Oversight Board formed thereunder; and
G. Health and Safety Code Section 34177 Q), as modified by the Supreme Court
decision requires the Successor Agency to prepare a proposed administrative
budget covering the period from February 1, 2012 through June 30, 2012 and submit
it to the Oversight Board to the Successor Agency for approval; and
H. Pursuant to Health and Safety Code Section 34177 (k), upon approval of the
administrative budget by the oversight board, the Successor Agency is required to
provide administrative cost estimates, from the approved administrative budget, that
are to be paid from property tax revenues deposited in the Redevelopment Property
Tax Fund, to the County of Orange Auditor-Controller for each fiscal year covered by
the administrative budget; and
On March 13, 2012 the Oversight Board to the Successor Agency reviewed,
approved and authorized the Successor Agency to adopt an administrative budget
pursuant to Health and Safety Code Section 34177 (j).
NOW, THEREFORE, BE IT RESOLVED BY THE TUSTIN CITY COUNCIL
SERVING AS THE SUCCESSOR AGENCY:
Section 1. The foregoing recitals are incorporated into this resolution by this
reference, and constitute a material part hereof.
Section 2. Approval of Proposed Administrative Budget. The Successor Agency
hereby approves and adopts the proposed administrative budget covering the period from
February 1, 2012 through June 30, 2012, in substantially the form attached to this
Resolution as Exhibit A, as required by Health and Safety Code Section 34177.
Section 3. Transmittal of Proposed Administrative Budget. The Executive Director
on behalf of the Successor Agency or his authorized designees is hereby authorized and
directed to take any action necessary to carry out the purposes of this Resolution and
comply with applicable law regarding the proposed administrative budget, including
submitting the proposed administrative budget and the administrative cost estimates from
the approved administrative budget, that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the County of Orange Auditor
Controller.
Section 4. This Resolution shall be effective immediately upon adoption.
Section 5. The City Clerk on behalf of the Successor Agency shall certify to the
adoption of this Resolution.
APPROVED AND ADOPTED this 20th day of March 2012.
CITY OF TUSTIN SERVING AS SUCCESSOR
AGENCY
John Nielsen, Mayor on behalf of the
Successor Agency
(SEAL)
ATTEST:
Pamela Stoker, City Clerk on behalf of the
Successor Agency
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
I, PAMELA STOKER, City Clerk of the City of Tustin, acting as the Successor
Agency for the Tustin Community Redevelopment Agency, hereby certifies that the
foregoing resolution was duly adopted by the City of Tustin, acting as the Succe3ssor
Agency to the Tustin Community Redevelopment Agency at its regular meeting held on
the 20th day of March, 2012, and that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
Pamela Stoker, City Clerk
City of Tustin, on behalf of the Successor
Agency
Exhibit A
(Attached Administrative Budget and Administrative Cost Estimates to be Paid from
Property Tax Revenues Deposited in the Redevelopment Property Tax Trust Fund)
Object Position
to Admin Total FY-
3 Estimated Property Tax allocated to Successor Agency Less
Pass-Throughs 17,654,929
4 Administrative Cost Allowance for FY 11/12 5% $ 882,746 882,746
ESTIMATED EXPENSES
EMPLOYEE DETAILS
Object Position Fiscal Year-TOtaIlPercentto Admin TotaIFY-Admin Februarythru
1 5000 Assistant Executive Director $ 109 529 30% $ 32 859 27,383
2 5000 Finance Director 232 809 11% 25 609 11 640
3 5000 Pro ram Mana er #1 160 840 25% 40 210 16 755
4 5000 Pro ram Mana er #2 157 027 25% 39 257 16 355
5 5000 Pro'ect Mana er 123,778 0%
6 5000 Mana ementAnal st 86609 0%
7 5000 Administrative Secrets 73,522 100% 73,522 30,635
Sub-Total Wages, Benefits and WC: $ 944,114 $ 211,457 $ 102,768
OTHER
Object
Code Item Total During Fiscal
Year 2011 12 Percent to Admin Total FY -Admin
Costs February thru June
2012 5 Months
1 6147 Bank Service Charges 3,000 100% 3,000 3,000
2 6355 Telephone 4,800 100% 4,800 2,035
3 6400 Office Supplies 5,200 100% 5,200 1,890
4 6415 Mail and Postage Service 1,600 100% 1,600 510
5 6420 Printing 9,000 100% 9,000 1,300
6 6710 Meetings (staff) 5,400 100% 5,400 1,040
7 6715 Training Expense 3?i0D 100% 3,400 800
8 6730 Membership/Subscriptions 11,500 100% 11,500 0
9 6840 Vehicle Mileage 200 100% 200 100
10 6845 Vehicle Lease Equipment 6,800 100% 6,800 0
11 6848 IT Support Services 36,500 100% 36,500 15,208
Sub-Total Admin Cost Allowances: $ 87,400 $ 87,400 $ 25,883
CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED)
Object
Code Item Total During Fiscal
Year 2011 12 Total FY -Admin
Costs February thru June
2012 5 Months
i City Administrative Support Costs
based on Cost Allocation 814,448 52% 424,995 $ 424,995
CITY ATTOR NEY (contract services)
Object
Code Description of Services Total During Fiscal
Year 2011/12 Percent to Admin Total FY -Admin
Costs February thru June
2012(5 Months)
6017 City Attorney's Office -Woodruff,
Spradlin & Smart (Including: StradBng
Yocca Carlson & Rauth; Remy, Thomas,
Moose & Manley, Waters & Company,
Jeanette Justus). This does not include
legal services from the following firms
that are associated with project costs:
1) Armbruster Goldsmith & Delvac LLP;
2)Cappello and Noel LLP, and 3) Kutak
Rock. $ 400,000 75% $ 300,000 $ 300,000
Sub-Total City Attorney: $ 400,000 $ 300,000 $ 300,000
SPECIFIC SERVICES (3rd Revised EOPS and Draft ROPS)
Object
Code Description Total During Fiscal
Year 2011/12 Percent to Admin Total FY -Admin
Costs February thrU June
2012 (5 Months)
1 6315 Lease of Office Space $ 49,47 100% $ 49,497 19,100
2 6014 Auditing5ervices $ 10,~G0 100% $ 10,000 10,000
Sub-Total Specific Services: $ 49,497 $ 49,497 $ 29,100
TOTAL ADMI NISTRATIVE SERVICE COSTS Percent to Admin TotaIFY-Admin
Costs FebruarythruJune
2012(5 Months)
TOTAL ADMINISTRATIVE SERVICE COSTS $ 1,073,349 $ 882,746
BUDGES- REVEh1UlE5 QSUu3iadU5)/GxPIE~SES (DErOCdT)
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Attachment 2
Agreement for Reimbursement of Costs
And City/Successor Agency Operations Loan
AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR
AGENCY OPERATIONS LOAN AND CITY/TUSTIN HOUSING AUTHORITY
OPERATIONS LOAN ("Agreement") is made and entered into as of March 20, 2012 by and
among the CITY OF TUSTIN, a California municipal corporation ("City"), and the CITY OF
TUSTIN ACTING AS SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY ("City Successor Agency")
RECITALS
A. The Tustin Community Redevelopment Agency ("Agency") was established as a
community redevelopment agency that was previously organized and existing under the California
Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL"), and
previously authorized to transact business and exercise the powers of a redevelopment agency
pursuant to action of the City Council ("City Council") of the City.
B. The Tustin Housing Authority is a housing authority and public body corporate and
politic organized, existing, and operating pursuant to the California Housing Authorities Law, Health
and Safety Code Section 34200, et seq.
C. Assembly Bill lx 26 added Parts 1.8 and 1.85 to Division 24 of the California Health
& Safety Code, which laws cause the dissolution and wind down of all redevelopment agencies
("Dissolution Act").
D. On December 29, 2011, California Redevelopment Association v. Matosantos, Case
No. 5194861, the California Supreme Court upheld the Dissolution Act and thereby all
redevelopment agencies in California are subject to the Dissolution Act and were dissolved effective
February 1, 2012.
E. The Agency is now a dissolved community redevelopment agency pursuant to the
Dissolution Act.
F. ~ By a resolution considered and approved by the City Council at an open public
meeting on January 17, 2012 the City chose to become and serve as the "City Successor Agency" to
the dissolved Agency under the Dissolution Act.
G. As of and on and after February 1, 2012, the City serves as the "City Successor
Agency" and will perform its functions as the successor agency under the Dissolution Act to
administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all
subject to the review and approval by aseven-member Oversight Board formed thereunder.
H. By a resolution considered and approved by the City Council at an open public
meeting on January 17, 2012 pursuant to California Health and Safety Code Section 34176 of the
Dissolution Act, the City declined to assume the housing assets and functions of the Agency and
selected the Tustin Housing Authority to so assume such housing assets and functions, and an such
date also pursuant to Section 34176 the Authority accepted and assumed the housing assets and
functions of the Agency and as of February 1, 2012 became and serves as the "Successor Housing
Agency" of the former Agency pursuant to the Dissolution Act. At this time, any assets assigned and
Page 1
transferred by operation of law and to be assigned and transferred by authorization of and direction
from the oversight board when formed and operating pursuant to the Dissolution Act to the Successor
Housing Agency are not adequate to fund administrative support costs and expenses unless any
future Low and Moderate Income Housing fund balances are authorized to be transferred under
State Law to the Successor Housing Agency. If this occurs, a future modification to this Agreement
may be necessary.
I. City as Successor Agency is engaged in activities necessary and appropriate to
winding down the activities of Tustin Community Redevelopment Agency's Redevelopment Plans
("Redevelopment Plans") for the MCAS Tustin Project, the Town Center Project and the South
Central Project ("Project Areas") that were originally adopted and amended by ordinances of the City
Councih
J. Employees of the City will perform day-to-day administration and operation of the
Successor Agency's duties and functions. Since the Tustin Community Redevelopment Agency was
originally formed and upon Successor Agency's effectiveness as of February 1, 2012, City has
provided and shall continue to provide services to the Successor Agency, including but not limited to
providing administrative, accounting, auditing, planning, engineering, legal, risk management,
financial, clerical, record-keeping, and other services necessary for the Successor Agency to carry
out its responsibilities.
K. City and City Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and payment for services
by entering into a new contract whereby City agrees to provide administrative and operational
services and City Successor Agency agrees to pay City for the cost of all such services to be provided
by City for City Successor Agency in amount equal to the City Successor Agency Administrative
Budget prepared pursuant to California Health and Safety Code Section 34177 (j) and approved by
the Oversight Board for each fiscal year under the term of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants and
conditions herein contained, the parties hereto agree as follows:
1. Reimbursement of Administrative Expenses. The City Successor Agency
shall be liable to the City for the payment of its Administrative Expenses as set forth in this
Agreement and as adopted as part of an Administrative Budget by the City Successor Agency, as
approved by the Oversight Board, as such annual Administrative Budget may be amended, revised or
reconciled from time to time. These Administrative Expenses shall be in addition to any direct
program or project expenses ("Program Expenses") incurred and noted on the Enforceable
Obligations Payment Schedule ("FOPS") and in the Recognized Obligation Payment Schedule
("ROPS"}, including salary and benefits of employees funded by the Successor Agency for Program
Expenses. The City Successor Agency shall also be liable to the City far payment of these Program
Expenses where they are adopted as part of the FOPS or BOPS.
2. Cost of Administrative Expenses and Administrative Cost Allowance.
2.1 City Successor Agency and City estimate that the cost of administrative and
operational services to be provided by City to the City Successor Agency for the period of February
1, 2012 through June 30, 2012 is Eight Hundred Eighty Two Thousand Seven Hundred and Forty Six
Dollars ($882,746). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees
to pay the sum of $882,746 to City to pay for the estimated administrative expenses of the City
Page 2
Successor Agency for the 2011-2012 fiscal year, subject to Oversight Board approval and City
Successor Agency preparation and approval of an administrative budget estimate for such services
and costs. The City Successor Agency shall also be liable to the City for payment of any Program
Expenses incurred by City where they are adopted as part of the EOPS or ROPS.
2.2. Information and supporting data regarding the staffing and allocation of costs
for have been prepared by City Successor Agency and City staff and are made a. part hereof by this
reference. Within thirty (30) days of the expiration of the 2011-2012 fiscal year and each year
thereafter during the term of this Agreement, the parties shall determine the actual costs incurred by
City Successor Agency for services provided to the City. If the actual amount incurred by City
Successor Agency is less than the estimated amount, City shall reimburse City Successor Agency in
the amount overpaid within 30 days of such notice, and if the actual amount incurred by City
Successor Agency is greater than the estimated amount, any additional amount above the estimated
amount shall be due and payable by City Successor Agency from the Redevelopment Obligation
Retirement Fund and the additional amount shall be advanced to City Successor Agency by City.
3. Services to be Provided. City agrees to continue to aid and cooperate and shall aid
and cooperate in the planning, undertaking, construction and operation of remaining enforceable
obligations of the City Successor Agency previously incurred by the former Agency as it relates to
enforceable obligations of the former Agency within the City provided the cost of such services are
paid by City Successor Agency. At the request of City Successor Agency through its Executive
Director and duly authorized designees, City and its officers and employees shall perform services
for City Successor Agency in carrying out its work related to meeting the farmer Agency's
enforceable obligations and for winding down the activities of the former Agency and shall have
access to any and all personnel and the facilities of the departments and offices of the City. Those
City officers and employees who are also appointed to positions or offices with or related to the City
Successor Agency shall perform services for the each agency in a dual capacity. The City Manager,
and other appropriate City officials on behalf of the City, and the Executive Director of the City
Successor Agency, and other appropriate City Successor Agency officials on behalf of the City
Successor Agency, and their duly authorized designees shall determine and establish the procedures
to be followed in requesting and rendering such services. The costs of administrative services shall
be considered Administrative Expenses in the Annual Administrative Budget. The costs of other
City Successor Agency Program Expenses where supported by City services are identified as specific
line items on the FOPS or ROPS and not part of the estimated Administrative Expenses identified in
Section 1.
4. Meeting Facilities. City agrees to make available to City Successor Agency such
office space and meeting space as is necessary for conducting meetings and the business of such
agency, including use of the City Council Chambers and appropriate conference room(s) for open
public meetings, closed session meetings, and study session meetings of the City Successor Agency
and Oversight Board, and meetings of City Successor Agency staff, counsel, consultants, and other
representatives. Each agency shall use such space in accordance with the rules and regulations of the
City as applicable to other buildings and offices of the City.
5. Succeeding Years during Term of Agreement. The procedure set forth above in
Sections 2, 3 and 4 shall be undertaken by City Successor Agency, the Oversight Board, and City for
each successive fiscal year during the term of this Agreement.
6. City Cost Allocation Plan; Estimated Cost of Administrative Services and
Facilities. Expenses shall be calculated in the manner set forth in City's cast allocation plan, or other
Page 3
applicable reasonable cost allocation and accounting plan approved by the parties that conforms with
generally accepted accounting principles and that is generally applicable to all users of services and
facilities of the City. The specific costs to be allocated herein shall be based upon the cast of the
following categories of services:
6.1 Wages and Benefits City Successor Agency. Wage and Benefit expenses
incurred in connection with City employees described to perform administrative services work for
City Successor Agency (as opposed to direct program or project work as identified as "Program
Expenses" related to enforceable obligations), including salaries, wage and fringe benefits. The
costs attributable to employees who devote less than 100% of their time to the City Successor
Agency shall be allocated in accordance with the City's cost allocation plan.
6.2 General Overhead. A general indirect administrative operating expenses
and overhead support charge which shall be determined in accordance with the City's cost
allocation plan and City Successor Agency Annual Administrative Budget.
6.3 Specific Services. All expenses that City may actually incur in providing
specific administrative services on behalf of City Successor Agency including, but not limited to,
audit services, lease of space to accommodate Successor Agency's activities, City Treasurer
services, property insurance far City Successor Agency's properties, contracts for real estate data
and information, department supplies, mail and postage services, equipment maintenance and IT
support. Operational services which relate to specific program and projects such as engineering
design, planning, contract costs, contract administration, inspection, surveys shall not be
considered administrative services but direct specific program and project expenditures ("Program
Expenses").
7. Annual Expenses Deemed City Advance. For each year in which. City Successor
Agency does not have adequate funds to pay and reimburse for Administrative Expenses as shown in
the adopted Administrative Budget each such amount shall be deemed an advance by City to City
Successor Agency and such amount shall be deemed to have been loaned by City to City Successor
Agency ("City/City Successor Agency Operations Loan").
8. Repayment of Operations Loan. City Successor Agency agrees to repay the
CitylSuccessor Agency Operations Loan (and all future advances thereto) from tax increment funds
allocated to City Successor Agency that are to be paid from property tax revenues deposited in the
Redevelopment Property Tax Trust Fund pursuant to California Health and Safety Code Section
34177 (k). City Successor Agency shall repay to City the principal amount of the City/City
Successor Agency Operations Loan on or before the last date that City Successor Agency may
receive tax increment funds pursuant to the time and f naneial limitations required to meet all
enforceable obligations of the City Successor Agency.
9. Provisions Severable. If any provision of this Agreement or application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Agreement which can be given effect without the invalid provision or application,
and to this end the provisions of this Agreement are severable. The City Council and City Successor
Agency each hereby declares that it would have approved this Agreement irrespective of the
invalidity of any particular portion hereof.
10. Effective Date of Agreement. This Agreement shall become effective as of the first
day noted above and shall continue thereafter until modified or terminated by the parties hereto.
Page 4
11. Subordination Indebtedness. The indebtedness of the City/City Successor Agency
Operations Loan under this Agreement shall be junior and subordinate to other allocated moneys
made from the Redevelopment Property Tax Trust Fund including those pursuant to California
Health and Safety Code Section 34183 (a) (1) through (2).
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
officers thereunto duly authorized on the date first above written.
CITY OF TUSTIN, a California municipal
corporation
By:
John Nielsen, Mayor
ATTEST:
Pamela Stoker, City Clerk
APPROVED AS TO FORM
David Kendig, City Attorney
SUCCESSOR AGENCY TO THE TUSTIN
COMMUNITY REDEVELOPMENT AGENCY
By:
John Nielsen
Successor Agency Chairman
ATTEST:
Pamela Stoker, City Clerk
on behalf of the Successor Agency
APPROVED AS TO FORM
David Kendig, Legal Counsel
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