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Home My WebLink AboutFourth Amended Reimbursement of CostsFOURTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN This FOURTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Fourth Amended Agreement") is made and entered into as of February 19, 2013 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 1X 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. Matosantos, 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 Page 1 assigned and transferred by operation of law and to be assigned and transferred to the Successor Agency by authorization ofand 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 Income Housing fund balances are authorized to be transferred under State l.avv to the Successor Housing Agency. If this occurs, a future modification to this Agreonucrd may be necessary. 1. City ou the Successor Agency is engaged in activities necessary and appropriate to wind down the activities ofTustin Community Redevelopment Agency's Redevelopment Plans ("Redevelopment Plans") for the MCAB Tustin Project, the Town Center Project and the South Central Project r1roject Areas") that were originally adopted and amended by ordinances of the City J. Employees of the City will 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 nmV[February |, 20|2` the City has provided and shall continue to provide services to the Successor Agency, including but not limited to providing administrative, accounting, auditing, planning, engineering, |ogn|, risk management, financial, clerical, recordkeeping, and other services necessary for the Successor Agency to carry out its responsibilities. K. City and City Successor Agency entered into an Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan on March 20, 2012 (the "Original Agreement"), aa amended b»the First Amended Agreement on April 17, 2012, the Second Amended Agreement on June 19, 2012, and the Third Amended Agreement on August 14, 2013 (the Original Agreement and all amendments shall be collectively referred to as the ^'/\greczoeut'`) to document an on-going cooperative arrangement regarding administrative and operational services and payment for services whereby City agrees &) 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 na California Health and Safety Code Section 34\77U). L. Pursuant to Health and Safety Code (HSC) Section 34180(c), the Oversight Board, on May 29, 2012, approved the acceptance of financial aooiatunoc for the Phase | and Pboup 2 Tustin Ranch Road Improvements Project conditioned upon the provision of matching funds tothe City from the MCAS Tustin 2010 Tax Allocation Bonds by the Successor Agency. In compliance with Ff8C 0outino 34100(h), the Oversight Board also authorized the Successor Agency to cuter into an amended reimbursement agreement with the City for the Successor Agency's matching contribution to the Iumdo Ranch Road lmnpnovcomomta p'nicot in the amounts of $5,983,863 for Phase \ and $8,164,931 for Phase 2 to be disbursed from MCAS Tustin 2010 Tax Allocation Bonds to the City. M. On December |Q, 2012, the Department ofFinance issued u determination denying the Successor Agency's use nfMC/\S Tustin 2010 Tax Allocation Bonds toprovide unngrhiog contribution tothe Tustin Ranch Road Improvements Project und,conuegucnt1y, the Agreement has been modified 10 delete the reference under Section 1.2. N. The Oversight Board on August 20' 2013, authorized the City Successor Agency to enter into an amended reimbursement agreement with the City to reflect modifications to the Administrative Cost Allowance and Administrative Budget for Fiscal Year 2011-12 and Fiscal Year 2Ol2'|3,aorequested b« the California Department ofFinance. Page 2 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 1 of the Original Agreement as it relates to Reimbursement of Administrative Expenses. (a) Section 1.2 Reimbursement of Phase 1 and Phase 2 Tustin Ranch Road Improvements Project Expenses is hereby deleted. 2. Modification of Section 2 of the Original Agreement as it relates to the Cost of Administrative Expenses and Administrative Cost Allowances for Fiscal Year 2013-14. (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, 2013 through June 30, 2014 is Three Hundred Forty -Two Thousand Five Hundred and Eighty -Two Dollars ($342,582). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $342,582 to City to pay for the estimated administrative expenses of the City Successor Agency for the period of fiscal year 2013 -14, 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, 2013 through December 31, 2013; and 2) January 1, 2014 through June 30, 2014. 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 ROPS." 3. Miscellaneous. (a) Fourth 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 Fourth Amended Agreement and the Original Agreement shall be binding upon and inure to the benefit of the parties hereto. <<<<<<<<<<<<<<<<<<<<<<<<<<< Signature Page Follows » » » » » » » » » » » » »> Page 3 IN WITNESS WHEREOF, the parties have caused this Fourth Amended Agreement to be executed by their officers thereunto duly authorized on the date first above written. "CITY" CITY OF TUSTIN, a California municipal corporation Lo ATTEST: Jeffry Pacer, City Clerk David Kendig, City Attorney "CITY SUCCESSOR AGENCY" SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGEN I'M ATTEST: z2 Jeffrey arker, City Clerk on blalf of the Successor Agency APPROVED AS TO FORM David Kendig, Legal Counsel Elwyn A.lMurray Successor Agency Chairman Page 4