HomeMy WebLinkAbout04 AMENDED PUBLIC WORKS AGREEMENT BETWEEN CITY AND SUCCESSOR AGENCYAgenda Item 4
AGENDA REPORT
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
MEETING DATE: APRIL 29, 2014
SUBJECT /ACTION: ADOPT OVERSIGHT BOARD RESOLUTION NO. 14 -08,
AFFIRMING AND RATIFYING THE AMENDED AND
REINSTATED PUBLIC WORKS AGREEMENT BETWEEN THE
CITY OF TUSTIN AND THE SUCCESSOR AGENCY TO THE
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
RECOMMENDATION / PROPOSED ACTION
It is recommended the Oversight Board of the Successor Agency to the Tustin
Community Redevelopment Agency adopt Oversight Board Resolution No. 14 -08,
affirming and ratifying the amended and reinstated Public Works Agreement between
the City of Tustin and the Successor Agency to the Tustin Community Redevelopment
Agency ( "Successor Agency "), subject to the following condition:
a) Should any subsequent modifications be required, the City Manager and /or Finance
Director, or their authorized designee, shall be authorized to make any
augmentation, modification, additions or revisions as may be necessary subject to
certification by the Oversight Board Chair.
(Note: This Resolution shall be effective after transmittal of this Resolution to the
Department of Finance ( "DoF ") and the expiration of five (5) business days pending a
request for review by DoF within the time periods set forth in the Dissolution Law. In
this regard, if DoF requests review hereof, it will have 40 days from the date of its
request to approve this Oversight Board action or return it to the Oversight Board for
reconsideration and the action, if subject to review by DoF, will not be effective until
approved by DoF.)
BACKGROUND
On June 2, 1993, the Tustin City Council and the Tustin Community Redevelopment
Agency approved and authorized the execution of the Public Works Agreement
( "Agreement ") for the South Central Redevelopment Project Area. The Agreement
required the Agency to reimburse the City for public improvements constructed as part
of the Newport Avenue Extension Project.
On June 29, 2011, Assembly Bill x1 26 became effective, causing the dissolution and
wind down of all redevelopment agencies; thereafter, Assembly Bill 1484 and other
implementing legislation to Division 24, Parts 1.8 and 1.85 of the California Health &
Safety Code (together, "Dissolution Law "). All redevelopment agencies in California
Agenda Report
April 29, 2014
Page 2
were dissolved as of and on February 1, 2012, and the Successor Agency became
responsible for winding down redevelopment activities in the City of Tustin. At the time
of Dissolution, the City had made $38,254,807 in contracted improvements to be
reimbursed under the Agreement.
In compliance with Health and Safety Code ( "HSC ") Section 34177, the Successor
Agency submitted a Recognized Obligation Payment Schedule ( "ROPS ") on March 15,
2012, to the State of California Department of Finance ( "DoF ") for approval. DoF
recognized the Agreement as an enforceable obligation and approved the request for
$8,558,775 in Redevelopment Property Tax Trust Funds ( "RPTTF ") to reimburse the
City in accordance with the Agreement. In accordance with Dissolution Law's ROPS
submission deadlines, the Successor Agency included the Agreement on ROPS II and
ROPS III. DoF approved payments of $1,954,712 for each period.
On February 27, 2013, the Successor Agency submitted ROPS 13 -14A, including a line
item request of $1,954,712 for the Public Works Agreement. On April 13, 2013, DoF
denied the City's request for payment, reversing their position on the Agreement as an
enforceable obligation. On April 19, 2013, the City requested and was granted a "Meet
and Confer' session for May 1, 2013. After presenting documentation supporting the
City's contention that the Agreement is an enforceable obligation, DoF responded with a
denial letter on May 17, 2013, maintaining its position the Agreement is not an
enforceable obligation and not eligible to receive RPTTF.
As a result of the passage of Assembly Bill 1484 in June of 2012, a provision was
added to the Dissolution Law providing successor agencies with an opportunity to
reinstate "loan agreements" through a Finding of Completion ( "Finding ") provision. On
May 10, 2013, the Successor Agency remitted what it believes to be its last remaining
unencumbered funds to the Orange County Auditor - Controller and on May 13, 2013,
requested a Finding from DoF.
On July 3, 2013, DoF informed the Successor Agency that a Finding would not be
issued until after the Successor Agency remitted the principal and interest due on
December 1, 2013, for the December 31, 2008, Promissory Note between the City and
Successor Agency. DoF's failure to issue the required finding of completion is contrary
to the requirements under HSC Section 34179.7, including their failure to provide a
response within five business days of the Agency's May 13th request. In response, the
City, the Successor Agency and the Tustin Housing Authority filed a "Petition for Writ of
Mandate and Complaint for Declaratory and Injunctive Relief' ( "Petition ") in August with
the Superior Court of the State of California ( "Court ") in Sacramento County.
Agenda Report
April 29, 2014
Page 3
On April 7, 2014, the Court issued its decision on the Petition and, among other rulings,
held that the Agreement is not an enforceable obligation, but it is a contract eligible to
be reinstated under Section 34191.4 after the issuance of a Finding of Completion; and
the Court ruled in Tustin's favor that the DoF erred in refusing to issue to Tustin its
Finding of Completion after the due diligence payments were made in May 2013. The
Court ordered a Writ of Mandate ( "Writ ") compelling the DoF to issue a finding of
completion under section 34179.7 be prepared and it is anticipated the Writ will be
signed in the next several days.
In preparation for the March 2014 hearing on the Petition, on January 21St, the City and
Successor Agency approved the amended Agreement; and, then on January 28t ", the
Oversight Board adopted Resolution No. 14 -03 that amended and reinstated the
Agreement, which under Section 34191.4(b)(2) establishes a payment schedule for
repayment of the loan and set interest at the Local Agency Investment Fund rate. The
DoF denied the Oversight Board's action, but the Court will issue the Writ that will cause
the issuance of the Finding, which will allow the reinstatement of the Agreement.
In anticipation of the Court's Writ and DoF issuing the Finding , which Tustin's counsel
is seeking to be issued nunc pro tunc as of May 2013 when the Successor Agency
remitted the funds clawed -back under the due diligence reviews, the Successor Agency
submitted the Oversight Board - approved, Recognized Obligation Payment Schedule
14 -15A ( "ROPS 14 -15A ") to DoF on February 27, 2014. In anticipation of a favorable
ruling, the Agreement was included on ROPS 14 -15A. The DoF issued our ROPS 14-
15A review letter on April 11, 2014, and, the DoF again denied the Agreement as an
enforceable obligation. The Successor Agency has requested a "Meet and Confer'
seeking to list the Agreement (and other disallowed items) on ROPS 14 -15A based on
the Court's mandate for DoF to issue the Finding of Completion.
Pursuant to HSC Section 34180(a) and 34191.4(b), the Oversight Board has the
authority to reinstate loan agreements between the City and the Successor Agency as
long as the Oversight Board finds the loan was for legitimate redevelopment purposes
and deems it to be an enforceable obligation. Although the Oversight Board has
already found the Agreement was for legitimate redevelopment purposes and deemed it
to be an enforceable obligation under Oversight Board Resolution No. 14 -03, staff
believes it would be prudent for the Board to affirm and ratify the Agreement was for
legitimate redevelopment purposes and to deem it an enforceable obligation now that
DoF has been mandated to issue the Finding. Once the Oversight Board affirms and
ratifies the amended Agreement through the adoption of Oversight Board Resolution
No. 14 -08, it will be submitted to DoF for review and will be included in the "Meet and
Confer" session. Staff does note that depending on the final form of the Writ to be
signed by the Court and the date that the Finding of Completion will be deemed to have
Agenda Report
April 29, 2014
Page 4
been issued, it may be necessary to bring this Agreement back again to the Oversight
Board for more action.
A copy of the First Amendment to the Public Works Agreement is attached to Oversight
Board Resolution No. 14 -08. Staff is available to answer any questions the Oversight
Board may have.
Attachment: Oversight Board Resolution No. 14 -08
OVERSIGHT BOARD RESOLUTION NO. 14 -08
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY AMENDING AND
REINSTATING THE PUBLIC WORKS AGREEMENT
BETWEEN THE CITY OF TUSTIN AND THE SUCCESSOR
AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT
AGENCY
The Oversight Board of the Successor Agency to the Tustin Community Redevelopment
Agency finds, determines and declares as follows:
A. The City of Tustin ( "City ") is a municipal corporation organized and operating under the
laws of the State of California; and
B. The Successor Agency is a public body corporate and politic, organized and operating
under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code, and
the successor the former Tustin Community Redevelopment Agency ( "former Agency ")
that was previously a community redevelopment agency organized and existing
pursuant to the Community Redevelopment Law, Health and Safety Code Section
33000, et seq. ( "CRL "); and
C. Assembly Bill x1 26 ( "AB x1 26 ") added Parts 1.8 and 1.85 to Division 24 of the
California Health & Safety Code and which laws were modified, in part, and determined
constitutional by the California Supreme Court in the petition California Redevelopment
Association, et al. v. Ana Matosantos, et al., Case No. S194861, which laws and court
opinion caused the dissolution of all redevelopment agencies and winding down of the
affairs of former redevelopment agencies, thereafter, such laws were amended further
by Assembly Bill 1484 and subsequent legislation (together AB x126, the Matosantos
Decision, and subsequent legislation are referred to as the "Dissolution Law ").
All statutory references herein are to the Health and Safety Code of the Dissolution
Laws unless otherwise stated; and
D. As of February 1, 2012 the former Agency was dissolved pursuant to the Dissolution
Law and as a separate public entity, corporate and politic the Successor Agency
administers the enforceable obligations of the former Agency and otherwise unwinds the
former Agency's affairs, all subject to the review and approval by a seven - member
oversight board ( "Oversight Board "); and
E. Section 34179 provides that the Oversight Board has fiduciary responsibilities to holders
of enforceable obligations and the affected taxing entities that benefit from distributions
of property tax and other revenues pursuant to Section 34188 of Part 1.85 of the
Dissolution Laws; and
F. Section 34177(a) permits the Successor Agency to make payments due for enforceable
obligations; and
Oversight Board Resolution 14 -08
Page 1 of 5
G. Section 34177(1) requires the Successor Agency to prepare a Recognized Obligation
Payment Schedule ( "ROPS ") before each six -month fiscal period that lists its
Enforceable Obligations; and
H. Section 34191.4(b) authorizes the City and Successor Agency to re establish prior loan
agreements between the City and the former Agency; and
On June 2, 1993, the Tustin City Council and Tustin Community Redevelopment Agency
approved the Public Works Agreement for the South Central Project Area; and
The Public Works Agreement required the Agency to reimburse the City for
infrastructure improvements constructed as part of the Newport Avenue Extension
Project; and
K. In accordance with the Dissolution Act, the Successor Agency has listed the Public
Works Agreement on the first four Recognized Obligation Payment Schedules ( "ROPS ")
submitted to the State of California Department of Finance ( "DoF "); and
L. After recognizing and approving the Public Works Agreement as an enforceable
obligation on the first three BOPS submittals, DoF denied the Agreement during the
fourth BOPS submittal, stating that it is not an enforceable obligation, and indicated the
Successor Agency could seek to reinstate the Agreement upon receiving a Finding of
Completion ( "Finding "); and
M. On May 10, 2013, the Successor Agency remitted what it believed to be its last
remaining unencumbered funds to the Orange County Auditor - Controller and on
May 13, 2013, requested a Finding from DoF; and
N. On July 3, 2013, DoF informed the Successor Agency that a Finding would not be
issued until after the Successor Agency remitted the principal and interest due on
December 1, 2013, for the December 31, 2008 Promissory Note between the City and
Successor Agency; and
O. In response, the City, the Successor Agency and the Tustin Housing Authority filed a
"Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief' with
the Superior Court of the State of California in Sacramento County; and
P. The City and Successor Agency have determined it is necessary and appropriate to
amend and reinstate the Public Works Agreement originally entered into by and
between the City of Tustin and the former Tustin Community Redevelopment Agency on
June 2, 1993, as an enforceable obligation; and
Q. On January 28, 2014, the Oversight Board duly considered all other related matters and
found the Public Works Agreement and the First Amendment were for legitimate
redevelopment purposes and deemed the Reimbursement Agreement an enforceable
obligation by adopting Oversight Board Resolution No. 14 -03; and
R. On February 20, 2014, the DoF did not approve Oversight Board Resolution No. 14 -03
and returned it to the Oversight Board for reconsideration when the Successor Agency
receives the Finding; and
Oversight Board Resolution 14 -08
Page 2 of 5
S. The Superior Court, County of Sacramento has issued its ruling in the Petition Case No.
34- 2013 - 80001623 under which a Writ will mandate the State Department of Finance
( "DoF ") to issue the Successor Agency its Finding of Completion, which is expected to
be issued nunc pro tunc as of May 2013; and
T. In light of the pending Finding, the Oversight Board has reconsidered Oversight Board
Resolution No. 14 -03 and has determined affirming and ratifying the previously
approved First Amendment to the Public Works Agreement and submission to DoF is in
the best interest of the City and Successor Agency and in the health, safety, and welfare
of its residents, and in accord with the public purposes and provisions of applicable state
and local laws and requirements; and
U. Also, by this Resolution the Oversight Board desires to re -affirm that the Public Works
Agreement was entered into for legitimate redevelopment purposes, that the
Agreement, as amended and reinstated, is an enforceable obligation; and
V. Notwithstanding, the former Agency borrowed funds from the Low and Moderate Income
Housing Fund during Fiscal Years 1986/87 to 1992/93; and
W. On May 1, 2000, the former Agency adopted Resolution No. RDA 00 -4, approving the
Town Center Housing Deficit Reduction Plan ( "Housing Deficit Plan "); and
X. On May 29, 2012, the Oversight Board approved a Housing Deficit Plan repayment
schedule; and
Y. In accordance with Section 34191.4, the Housing Deficit Plan repayment schedule will
be completed prior to Redevelopment Property Tax Trust Funds being issued by the
Orange County Auditor - Controller for Public Works Agreement payments.
NOW, THEREFORE, BE IT RESOLVED BY A RESOLUTION OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY:
Section 1. The foregoing recitals are incorporated into this Resolution by this reference,
and constitute a material part of this Resolution.
Section 2. Pursuant to Section 34191.4 of the Dissolution Law, the Oversight Board
reaffirms and determines: (i) the Public Works Agreement was entered into for legitimate
redevelopment purposes, and (ii) the reinstated loan is an enforceable obligation.
Section 3. The Oversight Board affirms and ratifies the previously approved First
Amendment to the Public Works Agreement attached hereto as Attachment No. 1 and
incorporated herein, and further authorizes the Successor Agency to transmit this
Resolution to the DoF.
Section 4. The Executive Director of the Successor Agency or his authorized designee
is directed to post this Resolution on the City /Successor Agency website.
Oversight Board Resolution 14 -08
Page 3 of 5
Section 5. This Resolution shall be effective after transmittal of this Resolution to DoF
and the expiration of five (5) business days pending a request for review by DoF within the
time periods set forth in Dissolution Law. In this request, if DoF requests review hereof, it
will have 40 days from the date of its request to approve this Oversight Board action or
return it to the Oversight Board for reconsideration and the action, if subject to review by
DoF, will not be effective until approved by DoF.
Section 6. The Secretary of the Oversight Board shall certify to the adoption of this
Resolution.
APPROVED AND ADOPTED this 29th day of April, 2014.
Doug Davert, Chairman
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
ATTEST:
Charles E. "Chuck" Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
Oversight Board Resolution 14 -08
Page 4 of 5
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN )
I, CHARLES E. "CHUCK' PUCKETT, Secretary of the Oversight Board of the
Successor Agency to the Tustin Community Redevelopment Agency, do hereby certify that
the whole number of the members of the Agency Board is seven; that the above and
foregoing Resolution No. 14 -08 was duly passed and adopted at a regular meeting of the
Oversight Board, held on the 29th day of April, 2014, by the following vote:
BOARD MEMBER AYES:
BOARD MEMBER NOES:
BOARD MEMBERS ABSTAINED:
BOARD MEMBERS ABSENT:
Charles E. "Chuck" Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
Attachment No. 1 — First Amendment to the Public Works Agreement
Oversight Board Resolution 14 -08
Page 5 of 5
ATTACHMENT NO. 1
FIRST AMENDMENT TO THE PUBLIC WORKS AGREEMENT
[Attached]
FIRST AMENDMENT TO THE PUBLIC WORKS AGREEMENT
SOUTH CENTRAL REDEVELOPMENT PROJECT
This FIRST AMENDMENT TO THE PUBLIC WOZO AGREEMENT
("First Amendment") is entered into as of this 21st day of January, 2014 ("Effective Date") by
and between the CITY OF TUSTIN, a municipal corporation ('City"), and the SUCCESSOR
AGENCY TO T14E TUSTIN COMMUNITY® REDEVELOPMENT AGENCY, a Public
body corporate and politic ("Successor Agency").
A. By Ordinance No. 891 adopted on July 18, 1983„ the City Council of the City
(if Tustin adopted and approved a certain Redevelopment Plan C'Redevelopment Plan") for the
South Central Redevelopment Project (the "Project"); and
B. Pursuant to the Community Redevelopment Law of the State of California
(Health and Safety Code Section 33000 et seq.), the former Tustin Community Redevelopment
Agency ("former Agency") and then the Successor Agency have been carrying out the
Redevelopment Plan for the Project in the Redevelopment Project Area ("Project Ara'); and
C. In furtherance of the Project, the former Agency and the City entered into that
certain Public Works AE.T, eernent ("Public Works Agreement") under which the City caused the
installation and construction of certain street, utility and other public improvements and
facilities to serve the Project ("Improvements") as described in EXHIBIT 'A' attached hereto
and incorporated herein, and the former Agency is obligated by such contract to pay the City
for the costs of such public improvements by periodic payments over a period of years
according to the terms of this Agreement; and
D. The f."bimer Agency and the City Council of the City found and determined that
the public improvements to be provided and thereafter provided pursuant to tine :public Works
Agreement were of benefit to the Project Area and that no other reasonable means of financing
such improvements were available to the community; and
E. The Successor Agency is a public body corporate and politic, organized and
operating under Parts 1.8 and 1.85 of Division 24 of the, California Health and Safety Code,
and the successor the former Tustin Community Redevelopment Agency ("former Agency")
that was previously a community redevelopment agency organized and existing pursuant to the
Community Redevelopment Law, Health and Safety Code Section 33000, ef seq. ("CRL"); and
F. Assembly Bill xI 26 ("AB xI 26") added Parts 1.8 and 1.85 to Division 24 of
the California Health & Safety Code and which laws were modified, in part, and determined
constitutional by the California Supreme Court in the petition Cal�fornia Redevelopment
Association, el al. v. Ana Matosanlos, el al., Case No. 5194861 CMalosanfos Decision"),
which laws and court opinion caused the dissolution of all redevelopment agencies and
winding down of the affairs of former redevelopment agencies; thereafter, such laws were
amended further by Assembly Bill 1484 ("AB 1484") (together AB X1 26, the Matosaillos
Decision, and AB 1484 are referred to as the "Dissolution Laws"), and all statutory references
herein are to the Health and Safety Code ofthe Dissolution Laws unless otherwise stated; and
G. As of February 1, 2012 the former Agency was dissolved pursuant to the
Dissolution Laws and as a separate public entity, corporate and politic the Successor Agency
administers the enforceable obligations of the former Agency and otherwise unwinds the
former Agency's affairs, all subject to the review and approval by a seven- member oversight
board ("Oversight Board"); and
H. Section 34179 provides that the Oversight Board has fiduciary responsibilities
to holders of enforceable obligations and the affected taxing entities that benefit from
distributions of property tax and other revenues pursuant to Section 34188 of Part 1.85 of the
Dissolution Laws; and
1. At the time of Dissolution, the City had made $38,254,807 in contracted public
improvements that the former Agency was obligated to reimburse under the Public Works
Agreement; and
J. In accordance with the Dissolution Act and in order to receive Redevelopment
Property Tax Trust Funds ("RIYFIT"), the Successor Agency submitted the Public Works
Agreement on a Recognized Obligation Payment Schedule ("R011S") for approval by the State
of California Department of Finance ("DoF"); and
K. After approving the Public Works Agreement as an enforceable obligation and
authorizing funding therefor from RPTTF funds on the Successor Agency's first three
BOPS submittals (BOPS 1, 11 and 111), DoF denied the Public Works Agreement in the fourth
BOPS (BOPS 13-14A), reversing its prior determinations that such contract is an enforceable
obligation and to be funded from RPTTF monies; and
L. On April 19, 2013, the Successor Agency requested and was granted a
"Meet and Confer" session with the DoF that occurred on May 1, 2013; and
M. After considering the Successor Agency's (and City's) documentation
supporting the Public Works Agreement as an enforceable obligation, DoF issued its decision
letter dated May 17, 2013 that denied funding pursuant to thereto, re-asserted its position
regarding BOPS 13-14A that the Public Works Agreement is not an enforceable obligation and
indicated the Successor Agency could seek to reinstate the Public Works Agreement upon
receiving a Finding of Completion ("Finding"); and
N. On May 10, 2013, the Successor Agency remitted what it believed to be its last
remaining unencumbered funds to the Orange County Auditor-Controller and on May 13,
2013, requested a Finding frorn DoF; and
O. On July 3, 2013, DoF informed the Successor Agency that a Finding would not
be issued until after the Successor Agency remitted the principal and interest due on
December 1, 2013 for the December 31, 2008 Promissory Note between the City and Successor
Agency even though such monies were not due at the time of the "true-up" payment in July
2012 nor at the time of completion of DoFs review of the due diligence review reports in late
2012 and early 2013; and
P. In response, the City, the Successor Agency and the Tustin Housing Authority
have filed a "Petition for Writ of Mandate and Complaint for Declaratory and Injunctive
2
Relief' in the Superior Court, County of Sacramento, pursuant to the Dissolution Laws
("Petition"); and
Q. While the Finding has been withheld from the Successor Agency under the
Dissolution Laws, nonetheless as a part of the facts and information to be submitted to the
Superior Court in connection with advancing the Petition, the City and the Successor Agency
have determined it necessary and appropriate to amend and reinstate the Public Works
Agreement originally entered into by and between the City of Tustin and the former Agency as
an enforceable obligation; and
R. Under the Dissolution Laws, by this First Amendment the Public Works
Agreement will be reinstated and re-established and thereafter will be submitted to the
Oversight Board, for review and determination that such contract, as amended, is an enforceable
obligation and if approved then the matter will be submitted again to the DoF for review and
approval; and
S. This First Amendment sets -forth the terms for repayment of the Public Works
Agreement as reinstated and re- established pursuant to a new, defined repayment schedule over
a reasonable term, of years, which is set forth in EX111BIT 413' attached hereto and fully
incorporated by this reference with interest accruing at the rate earned by funds deposited into
the Local Agency Investment Fund ("LMF") pursuant to Section 34191.4 and other terms as
set forth hereinafter,
NOW THEREFORE, in consideration of the mutual covenants, agreements and
considerations contained herein, the City and the Successor Agency hereby agree the following
sections shall be amended:
1, The following sections
of the Original Public Works Agreement are hereby amended as follows:
a) Section 2. hayrn j -L t _b A is hereby deleted in its entirety and
fl1q__=qgy
replaced as follows:
"In consideration of the undertakings of the City under Section I of this
Agreement, and after first making adequate provision for the annual payment
of principal and interest due on any bonds or other indebtedness of the former
Agency which may be incurred by the forrner Agency in carrying out the
Project and for which the annual tax allocations to the former Agency from the
Project ( "Tax Allocations") are pledged or committed, the former Agency shall
reimburse the City for constructed improvements.
At the time of Dissolution, the Successor Agency owed the City $38,254,807 in
contracted improvements. Pursuant to the Dissolution Act, the Successor
Agency shall reimburse the City from Redevelopment Property Tax Trust
Funds ("RPTTF") allocated through the Itecognized Obligation Payment
Schedule process. To date, the Successor Agency has reimbursed the City
$12,468,199 in RPTTF, leaving a principal and interest balance of $25,934,993.
Upon meeting the requirements outlined in Health and Safety Code ("HSC")
Section 34191.4(b)(2)(A), the Successor Agency will make five annual
3
payments in the amount of $5,190,371. In the event the RPTTF received are
not sufficient to make a $'5,190,371 payrnent, principal and interest balances
will be rolled over into subsequent payments. The attached payment schedule,
EXHIBIT '13% is in accordance with H Section 34191,4(b)(2), utilizing an
interest rate not to exceed the interest rate earned by funds deposited into the
Local Agency Investment Fund."
b) Section 4. jetmiaktigli (Lf A , y is hereby deleted in its entirety
and replaced as follows: , _ &Mcjp�L_t
"This Agreement and the obligations of the City and the Successor Agency
g
hereunder shall terminate with the improvements completed by the City at the
time of Dissolution and upon the Successor Agency completely paying off the
principal balance of $38,254,807 plus accrued interest."
[signatures on next pagel
4
IN WITNESS WHEREOF, the City and the Successor Agency have executed the
First Amendment to the Public Works Agreement as of the Effective Date.
CITY:
CITY OF-/TUSTIN,--,A,-,)Califomia municipal
By:
ATTEST:
CITY CLERK, �r
By: OlrL
Jeffrey Parker
APP 0 AS
By:
David E. Ken
City Attorney
...... ....
ATTEST:
CITY CLIP �, TO SUCCESSOR 'GENCY
Y
By:
Jd!(Oy C'. Parker
"PROVED Ag-TOAFORM:
Agency
wyn.4. Murray, Mayor
SUCCESSOR AGENCY:
SUCCESSOR AGENCY TO TUSTIN
By:
blic,bqd9,,W 4orporate and polific.
Elwyn A[ MLUTay , Chair
Attachments: EYJ.,UBIT 'A' — South Central Project Area Critical Public Improvements and
Facilities
EXI-11BIT 'B' — Public Works Agreement Payment Schedule
EXI,IIBIT ' A'
SOUTH CENTRAL PROJECT AREA
CRITICAL PU13LIC IMPROVEMENTS AND FACILITIES
Project Description:
Extension of Newport Avenue south, under an existing railroad right of way and
County flood control channel. "rho project will include the construction ofa new on
and off ramp configuration for Newport Avenue and the SR-55 Freeway; the
relocationand improvement to water and other utilities and storm drains and other
improvements to Edinger Avenue.
Estimated Project Costs:
Newport Avenue Extension
SR-55 Freeway Ramps
Utility and Stonri Drain
Upgrade Relocation
Edinger Avenue Improvements
A-i
S18,300,000
4,700,000
4,200,000
A J-0-02 M
$33,500,000
EXTM31T'B'
(attached}
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