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Home My WebLink AboutSecond Amended Reimbursement of CostsSECOND AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN This SECOND AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Second Amended Agreement") is made and entered into as of ? 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, ei 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. Matosantos, Case No. 5194861, 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 I 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. 1. 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 entered into an Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan on March 20, 2012 (the "Original Agreement"), as amended by the First Amended Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan on April 17, 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 34177 0). L. Pursuant to Health and Safety Code (HSQ Section 34180(e), the Oversight Board, on May 29, 2012, approved the acceptance of financial assistance for the Phase 1 and Phase 2 Tustin Ranch Road Improvements Project conditioned upon the provision of matching funds to the City from the MCAS Tustin 2010 Tax Allocation Bonds by the Successor Agency. In compliance with HSC Section 34180(h), the Oversight Board also authorized the Successor Agency to enter into an amended reimbursement agreement with the City for the Successor Agency's matching contribution to the Tustin Ranch Road Improvements Project in the amounts of $5,983,863 for Phase I and $8,164,931 for Phase 2 to be disbursed from MCAS Tustin 2010 Tax Allocation Bonds to the City. M. The Oversight Board on May 29, 2012, 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 2012-12, as requested by the California Department of Finance. 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. Page 2 (a) Section 1. Reimbursement of Administrative Expenses of the Original Agreement is hereby deleted and replaced to read as follows: 41. Reimbursement of Expenses. 1.1 Reimbursement of Administrative Expenses._ The City Successor Agency shall be liable to the City for the payment of its Administrative Expenses as set forth in this Agreement and as adopted as part of an Administrative Budget by the City Successor Agency, as such Administrative Budget may be augmented, modified, amended, revised or reconciled from time to time. These Administrative Expenses shall be in addition to any direct program or project expenses ("Program Expenses") incurred and noted on the Enforceable Obligations Payment Schedule C'EOPS") and on Recognized Obligation Payment Schedules ("ROPS"), including salary and benefits of employees funded by the Successor Agency for direct Program Expenses. The City Successor Agency shall also be liable to the City for payment of these direct Program Expenses where they are adopted as part of the RODS. 1.2 Reimbursement of Phase I and Phase 2 Tustin Ranch Road lmorovements 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 this Agreement. 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 $8,164,93, 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 2.1 of the Original Agreement is hereby deleted and replaced to read as follows: "Section 2.1 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 February 1. 2012 through June 30, 2012 is Eight Hundred Thirteen Thousand Three Hundred Fifty- Nine Dollars ($813,359). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $813,359 to City to pay for the estimated administrative expenses of the City Successor Agency for the period of fiscal year 2011-12, subject to Oversight Board approval and City Successor Agency preparation and approval of an administrative budget estimate for such services and costs. 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." (b) 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 Three Hundred Eighty-Three Thousand and Ninety-Five Page 3 Dollars ($383,095). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $383,095 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 ROPS." 3. Miscellaneous. (a) Second 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 Second 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 Second Amended Agreement to be executed by their officers thereunto duty authorized on the date first above written. ATTEST: -6,C_ Pamela Stoker, City Clerk '- D AS David Kendig,—City Attorney <Additional Signatures Follow on Next Page> Page 4 "CITY SUCCESSOR AGENCY" SUCCESSOR, 6 � AGENCY`TQ THE TUSTIN COMMUNIT 'RE EU NT AGENCY * By: � VV Agency Chairman ATTEST: Pamela Stoker, City Clerk — on behalf of the Successor Agency David Kendig, Legal Page 5