HomeMy WebLinkAbout09 SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGMT RE: TUSTIN-SANTA ANA TSIP• Agenda Item 9
AGENDA REPORT Reviewed
City Manager
Finance Director
MEETING DATE: NOVEMBER 6, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER
SUBJECT: APPROVE SECOND AMENDMENT TO JOINT EXERCISE OF POWERS
AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE CITY OF
TUSTIN REGARDING THE TUSTIN -SANTA ANA TRANSPORTATION
SYSTEM IMPROVEMENT PROGRAM (TSIP)
SUMMARY
The Second Amendment to the TSIP Agreement allows the City of Santa Ana to select alternate
improvements that provide an equivalent level of mitigation for improvements at Grand Avenue and
Edinger Avenue as identified in the First TSIP Amendment and the MCAS Tustin EIS /EIR. It also
provides the City of Tustin use of a portion of the remaining TSIA fees to be collected at Tustin
Legacy for various transportation system improvements within the Tustin Legacy area. The
proposed Second Amendment was approved by the Transportation System Improvement Authority
Board on October 11, 2012, and unanimously approved by the Santa Ana City Council on October
15, 2012.
RECOMMENDATION
It is recommended that the City Council approve the Second Amendment to the Joint Exercise of
Powers Agreement between the City of Santa Ana and City of Tustin Regarding the Tustin -Santa
Ana Transportation System Improvement Program, subject to any non - substantive changes
deemed necessary by the City Attorney.
FISCAL IMPACT
Pursuant to provisions of the First Amendment to the TSIP Agreement the City of Tustin will pay
the City of Santa Ana $8,000,000.00 for MCAS Tustin mitigation improvements at the Grand
Avenue /Edinger Avenue intersection. These funds will be paid from the City of Tustin Community
Facilities District No. 06 -01 funds (Fund 434), which have been designated for the mitigation
payment.
BACKGROUND
Santa Ana and Tustin entered into a Joint Exercise of Powers Agreement dated November 6,
1989, creating the Santa Ana/Tustin Transportation System Improvement Authority This
Agreement created two Transportation System Improvement Program (TSIP) areas to exercise
various defined powers within the TSIP areas. These powers include the expenditure of developer
impact fees to study, plan, and implement area -wide circulation improvements.
The First Amendment to the Agreement dated February 22, 2001, established a funding
mechanism to finance off -site traffic improvements within the jurisdictional boundaries of Santa
Ana required to mitigate the impacts of development of the MCAS Tustin facility, identified in the
Final EIS /EIR. The Santa Ana improvements include both the Grand Avenue /Edinger Avenue
Approve Second Amendment to TSIA
November 6, 2012
Page 2
intersection and the Grand Avenue /Dyer Road intersection and require that Tustin pay its fair share
of the total costs for both short and long range improvements. The First Amendment also
extended the term of the Tustin Legacy portion of the TSIP area for an additional period of 10-
years, to the year 2020.
In September 2011, the City of Tustin released bond proceeds from Community Facilities District
No. 06 -01 to pay the total costs for the improvements to the Grand Avenue/ Dyer Road intersection
in the amount of $296,060.00. The proposed Second Amendment provides that Santa Ana, in
cooperation with Tustin, may select and implement alternative improvements to those identified in
the Amendment as requiring funding by Tustin. The City of Santa Ana desires to implement
certain alternative traffic mitigation measures which they have determined to provide an equivalent
level of mitigation to Grand Avenue /Edinger Avenue improvements identified in the Agreement,
and will release Tustin from its obligation to pay its fair share total costs of all remaining Grand
Avenue /Edinger Avenue intersection improvements.
Santa Ana has selected, and has the approval of Tustin, to substitute improvements at the Warner
Avenue Widening Project in the amount of $8,000,000.00 as an alternate improvement determined
by Santa Ana to provide an equivalent level of mitigation for the Grand Avenue /Edinger Avenue
intersection.
The Second Amendment also re- confirms the First Amendment distribution of TSIA fees to be
collected at Tustin Legacy as 85% to Santa Ana for the Warner Avenue Widening Project and 15%
to the City of Tustin for transportation improvements within the Tustin Legacy project area.
Ii
Stack, P.E.
Public Works /City Engineer
Attachment: Second Amendment to TSIA Agreement
S* \City Council Items\2012 Council Items\Approval of Second Amendment to TSIA docx
SECOND AMENDMENT TO JOINT EXERCISE OF
POWERS AGREEMENT BETWEEN THE CITY OF SANTA ANA
AND THE CITY OF TUSTIN REGARDING THE TUSTIN -SANTA ANA
TRANSPORTATION SYSTEM IMPROVEMENT AUTHORITY
THIS SECOND AMENDMENT to the Joint Exercise of Powers
Agreement ( "Second Amendment') is entered into as of November _, 2012, by and
between the City of Santa Ana, a charter city and municipal corporation duly organized
under the Constitution and laws of the State of California ( "Santa Ana ") and the City of
Tustin, a municipal corporation ( "Tustin ").
RECITALS
A. Santa Ana and Tustin entered into a Joint Exercise of Powers Agreement
dated November 6, 1989, creating the Santa Ana/Tustin Transportation System
Improvement Authority ( "JPA Agreement'). This JPA Agreement created two
Transportation System Improvement Program ( "TSIP ") areas and, pursuant to the
provisions of Government Code section 6500 et seq., established a legally separate, joint
exercise of powers authority (the "Santa Ana/Tustin Transportation System Improvement
Authority ") to exercise various defined powers within the TSIP areas. These powers
include expenditure of developer impact fees ( "TSIP Area Fees ") to study, plan and
implement area -wide circulation improvements.
B. By Amendment to JPA Agreement (the "Amendment'), dated February
22, 2001, the Parties established a funding mechanism to finance off -site traffic
improvements within the jurisdictional boundaries of Santa Ana (the "Improvements ")
required to mitigate the effects of development of the MCAS Tustin property, identified
in the Final Environmental Impact Statement /Environmental Impact Report for the
Disposal and Reuse of MCAS Tustin (the "FEIS /FEIR ").
C. The Santa Ana Improvements include both the Grand and Edinger
intersection and the Grand and Dyer intersection in Santa Ana, and require that Tustin
pay its fair share of the Total Costs of both short and long range improvements.
D. The Amendment provides that Santa Ana, in cooperation with Tustin, may
select and implement alternative improvements to those identified in the Amendment as
requiring funding by Tustin.
E. The City of Tustin and the City of Santa Ana entered a Joint Community
Facilities Agreement, dated May 1, 2006, to provide for the financing of the Santa Ana
improvements through issuance of City of Tustin Community Facilities District No. 06-
01 (Tustin Legacy /Lennar Homes) ( "Community Facilities District').
F. Tustin in September 2011 previously released bond proceeds from the
Community Facilities District to pay the total cost of Improvements to Grand and Dyer in
the amount of $296,060.00 based on a request from Santa Ana, and Santa Ana released
Tustin from any further Improvement obligations under the JPA Agreement with an
Acknowledgement and Release dated March 28, 2011.
H. Santa Ana desires to utilize bond proceeds from the Community Facilities
District to pay the cost of certain alternative traffic mitigation measures which they have
determined to provide an equivalent level of mitigation to Grand and Edinger
Improvements identified in the Amendment, and will release Tustin from its obligation to
pay its fair share total cost of all remaining Grand and Edinger Intersection
Improvements.
NOW, THEREFORE, for and in consideration of the mutual promises and covenants
herein, Tustin and Santa Ana agree as follows:
Section 1. Selection of Alternative Improvement
Pursuant to Section D of the Amendment, "Alternative Improvements ", Santa
Ana hereby selects, and Tustin approves, releasing bond proceeds from the Community
Facilities District in the amount of Eight Million Dollars ($8,000,000.00) for the Warner
Avenue Widening Project as an Alternative Improvement determined by Santa Ana to
provide an equivalent level of mitigation for Grand and Edinger Improvements in Santa
Ana identified in the Amendment and FEIS /EIR and agreeing that release of these bond
proceeds to Santa Ana will constitute Tustin's fair share of the Total Costs of Grand and
Edinger Improvements as identified in Section B.2 of the Amendment.
Section 2. Funding of Alternative Improvement
Upon Tustin's transfer of Eight Million Dollars ($8,000,000.00) to Santa Ana,
Tustin shall be thereupon relieved of any further fair share or construction responsibility
for the completion of Grand and Edinger Improvements as set forth in Section B.2 of the
Amendment. Further, since Santa Ana is electing to utilize the Community Facilities
District bond proceeds for Alternative Improvement rather than for the Grand and
Edinger Intersection Project, no subsequent mitigation shall be required by Tustin for any
inadequacies in this intersection as a result of the improvements not being made to the
intersection by Santa Ana as a result of Santa Ana's selection of Alternative
Improvements.
Section 3. Use of Funds by Santa Ana and Tustin
3.1 Any and all funds received by Santa Ana from Tustin pursuant to this
Amendment shall be used exclusively for the Warner Avenue Widening Project. Santa
Ana may utilize this money on any phase(s) of the Project, for preliminary costs such as
alignment studies, design, environmental documentation beyond the FEIS /FEIR, property
appraisal for improvements, property acquisition, relocation, lost goodwill, attorney's
fees and court costs, and construction costs. The Parties agree that Santa Ana may utilize
the Alternative Improvement funds as match funds to obtain grant funding for the Project.
3.2 Pursuant to Section E. 2 of the Amendment, Eighty -five percent (85 %)
of TSIA fees collected by Tustin from the MCAS Tustin Project will continue to be
solely allocated to Santa Ana for the Warner Avenue Widening Project and utilized
exclusively for the Warner Avenue Widening Project until January 1, 2020 only as it
relates to the TSIP Area B, as amended by Exhibit D. Notwithstanding the status of
completion of the Warner Avenue Widening Project as identified in Section E. 2 and any
priority originally intended to be given to Improvements to Barranca and Jamboree Road
as identified in Section EA of the Amendment, Santa Ana and Tustin mutually agree that
any additional TSIA Area B fees generated from MCAS Tustin ( the remaining "fifteen
percent" or "15 % ") shall be allocated to Tustin to be used solely for transportation system
improvements determined by Tustin for the MCAS Tustin project and its implementation.
Section 4. This Second Amendment to the JPA Agreement is intended by the parties
as a complete and exclusive statement of the agreement and understanding of the parties
hereto in respect to the selection of an Alternative Improvement contained herein. This
Amendment supersedes any and all prior restrictions, promises, representations,
warranties, agreements, understandings and undertakings between the parties with respect
to such alternative improvement.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first above written.
ATTEST:
SANTA ANA
CITY OF SANTA ANA
MARIA D. HUIZAR PAUL M. WALTERS
Clerk of the Council Interim City Manager
APPROVED AS TO FORM:
JOSEPH STRAKA
Interim City Attorney
APPROVED AS TO CONTENT:
RAUL GODINEZ, II
Executive Director
Public Works Agency
ATTEST
PAMELA STOKER
City Clerk
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DAVID KENDIG
City Attorney
APPROVED AS TO CONTENT:
DOUGLAS S. STACK
Public Works Director /City Engineer
in
TUSTIN
CITY OF TUSTIN
JEFFREY C. PARKER
City Manager