HomeMy WebLinkAboutThird Amended Reimbursement of CostsTHIRD AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This THIRD AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND
CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Third Amended Agreement") is made
and entered into as of _1ajAdJ_Lf__._ , 2012 by and among the CITY OF TUSTIN, a California
municipal corporation 'C'tity"), 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 I X 26 added Parts 1.8 and 1.85 to Division 24 of the California Health
& Safety Code, which laws caused the dissolution and wind down of all redevelopment agencies
("Dissolution Act"),
D. On December 29, 2011, California Redevelopment Association, et al. v. Alatosantos,
Case No. S194861, 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 review and approval by a seven-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, and 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 assume such housing assets and functions, and on such date,
also pursuant to Section 34176, the Tustin Housing 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, assets
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ammbgocd and transferred by operation of law and to be assigned and transferred to the Successor
Agency by authorization of and direction from the Oversight Board and operating pursuant to the
Dissolution Act, are not adequate to fund administrative support costs and expenses unless any future
Low and Moderate lounmoc Housing fund balances are authorized Cu be transferred under State Law
to the Successor Housing Agency. Uf this occurs, a future modification to this Agreement may be
necessary.
1. City as the Successor Agency is engaged in activities necessary and appropriate to
wind dnxm the activities of Tustin Community Redevelopment Agency's Redevelopment Plans
("Redevelopment Plans") for the MCA8 7[uydn Project, the Town Center Project and the South
Central Project ("Project Ancamr) that were originally adopted and amended by ordinances ofthe City
Council.
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 D}oned and upon Successor Agency's effectiveness as of February |` 2012, the City has
provided and shall continue Voprovide services k]the Successor Agency. including but not limited to
providing administrative, accounting, auditing, planning, engineering, legal, risk management,
financial, clerical, rccordkeeping, and other services ocr#muary for the Successor Agency to carry out
its responsibilities.
K. City and City Successor Agency entered into an Agreement for Reimbursement of
Costs and Citw/SucceomorAgeocy (joeod>ons Loam on March 20, 2012 (the "Original Agreement"),
as amended by the First Amended /4gnceoncnt on April 17, 2012 and the Second Amended
Agreement on June 10, 2012 (the Original Agreement and all amendments shall be collectively
referred to as the "Agreement") to document an on-going cooperative arrangement regarding
administrative and operational services and payment for services 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 pursuant to California Health and
Safety Code Section 34l77U).
L. Pursuant to Health and Safety Code (B8Q Section 34|80(c)^ the Oversight Board, on
May 29, 2812, approved the acceptance uf financial assistance for the Phase l and Phase 2 Tustin
Ranch Road Improvements Project conditioned upon the provision of matching funds to the City
from the MC&B Tustin 2010 Tax /\|!ouadon Bonds bythe Successor Agency. In compliance with
H8C Section 34l08fh\. the Oversight Board also authorized the Successor Agency um enter into on
amended reimbursement agreement with the City for the Successor Agency's matching contribution
to the Tustin Ranch Road Improvements Project in the amounts of $5`4*3`063 for Phase \ and
$8,164,931 for Phase 2tohe disbursed from KXC/\8 Tustin 2O)8 Tax Allocation Bonds 10 the City.
M. The Oversight Board on May 29. 2012, authorized the City Successor Agency to
coiec into on amended reimbursement agreement with the City to reflect modifications to the
/ldmu(nimtnydvc Cost Allowance and Administrative Budget for Fiaou\ Year 2011-12 and Fiscal Year
2O|2-|2,as requested bythe California Department nyFinance.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants and
conditions herein contained, the parties hereto agree as follows:
1. Modification of Section I of the Original Agreement as it relates to
Reimbursement of Administrative Expenses.
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(a) Section 1.2 Reimbursement of Phase I and Phase 2 Tustin Ranch
Road Improvements -Project Expenses is hereby deleted and replaced to read as follows:
"1.2 Reimbursement of Phase I and Phase 2 Tustin Ranch Road Improvements Project
Expenses. The City Successor Agency shall be liable to the City for a matching contribution and
payment to be made to the Phase I and Phase 2 Tustin Ranch Road Improvements Project to be
disbursed from MCAS Tustin 2010 Tax Allocation Bond proceeds to the City upon the effective date
of the Third Recognized Obligation Payment Schedule. The required match from the MCAS Tustin
2010 Tax Allocation Bond proceeds for the Phase I Tustin Ranch Road Project is $5,983.863 and for
the Phase 2 Tustin Ranch Road Project is $8,164,931, for a total match of $14,148.794 for Tustin
Ranch Road Project expenses."
2. Modification of Section 2 of the Original Agreement as it relates to the Cost of
Administrative Expenses and Administrative Cost Allowances for Fiscal Years 2011-12 and
2012-13.
(a) Section 2.3 of the Original Agreement is hereby deleted and replaced
as follows:
"Section 2.3 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
July 1, 2012 through June 30, 2013 is Five Hundred Twenty-Nine Thousand Nine Hundred and
Sixty-Two Dollars ($529,962). Pursuant to the provisions of Section 4 herein, City Successor
Agency agrees to pay the sum of $529,962 to City to pay for the estimated administrative expenses
of the City Successor Agency for the period of fiscal year 2012-13, subject to Oversight Board
approval and City Successor Agency preparation and approval of an administrative budget estimate
for such services and costs for the two upcoming six-month fiscal periods: 1) July 1, 2012 through
December 31, 2012; and 2) January 1, 2013 through June 30. 2013. The City Successor Agency
shall also be liable to the City for payment of any and all direct Project and Program Expenses
incurred by City where they are adopted as part of the BOPS."
3. Miscellaneous.
(a) Third Amended Agreement Ratified. Except as specifically amended or modified
herein, each and every term. covenant and condition of the Original Agreement as amended is hereby
ratified and shall remain in full force and effect.
(b) Binding. This Third Amended Agreement and the Original Agreement shall be
binding upon and inure to the benefit of the parties hereto.
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IN WITNESS WHEREOF, the parties have caused this Third Amended Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
,,CITY"
CITY OF TUSTIN a Torn municipal corporation
By:
John Nielsen, Mayor
ATTEST:
Pamela Stoker, City C
A OVER AS TO FORM
L2 IL
David Kendig, City Attorney
"CITY SUCCESSOR AGENCY"
CSUCCESSR A C T0jLENT E TUSTIN
OMM I JN O lf V=EDEVV� L AGENCY
I M.
ATTEST�,/
I P
Pamela Stoker, City berk-
on behalf of the Successor Agency
h us] I E-61 'A' 11
Kendig, Legal Counsel
ielsen
sor Agency Chairman
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