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HomeMy WebLinkAboutFirst Amended Reimbursement of CostsFIRST AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN This FIRST AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("First Amended Agreement") is made and entered into as of Apr'j 1 11 _, 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 IX 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, 201 California Redevelopment Association, et al. v. Malosantos, 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 so assume such housing assets and functions, and on such date, also pursuant to Section 34176, the 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 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 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 the Successor Agency is engaged in activities necessary and appropriate to wind 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 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 formed and upon Successor Agency's effectiveness as of February 1, 2012, 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, legal. risk management, financial, clerical, recordkeeping, and other services necessary for the Successor Agency to carry out its responsibilities. K. City and City Successor Agency on March 13, 2012, entered into an Agreement for Reimbursement of Costs and City /Successor Agency Operations Loan ( "Original 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 34177 0). 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 2 of the Original Agreement as it relates to the Cost of Administrative Expenses and Administrative Cost Allowances for Fiscal Year 2012 -13 Section 2 of the Original Agreement is hereby amended to add the following new Section 2.4 to read as follows: "Section 2.4. 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 Four Hundred Forty-Four Thousand One Hundred Ninety -Six Dollars ($444,196). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $444,196 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 upcoming six -month period, fiscal period of July 1, 2012 through December 31, 2012 and for the fiscal period of 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 ROPS." Page 2 2. Miscellaneous. (a) First 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 First Amended Agreement and the Original Agreement shall be binding upon and inure to the benefit of the parties hereto. IN WITNESS WHEREOF, the parties have caused this First Amended Agreement to be executed by their officers thereunto duly authorized on the date first above written. CITY OF TUSTIN C#iforga municipal corporation John Nielsen, Mayor ATTEST: amela Stoker, City Clerk APPROVED AS TO FORM g 9,4 l (' David Kendig, City Attorney ) SUCCESSOR AGENCY TO THE TUSTIN COMMUNI.,TY REDEEI'OPMENT AGENCY Join =Nielsen Successor Agency Chairman ATTEST: r Pamela Stoker, City Clerk on behalf of the Successor Agency APPROVED AS TO FORM David Kendig, Legal.Counsel i Page 3