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HomeMy WebLinkAboutSA_2014-08-12_Agenda Packet CITY OF ATASCADERO CITY COUNCIL IN THE CAPACITY OF SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 AGENDA Tuesday, August 12, 2014 (Immediately following the City Council Regular Session) City Hall Council Chambers, 4th floor 6500 Palma Avenue Atascadero, California (Enter from Lewis Avenue) REGULAR SESSION – CALL TO ORDER: ROLL CALL: Mayor O’Malley Mayor Pro Tem Sturtevant Council Member Fonzi Council Member Kelley Council Member Moreno APPROVAL OF AGENDA: Roll Call 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Agency or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken. DRAFT MINUTES: Successor Agency meeting draft minutes are listed on the Consent Calendar for approval of the minutes. Should anyone wish to request an amendment to draft minutes, t he item will be removed from the Consent Calendar and their suggestion will be considered by the Successor Agency. If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of the meeting.) 1. Successor Agency Draft Action Minutes – February 11, 2014  Recommendation: Council in the capacity of the Successor Agency to the Redevelopment Agency of Atascadero approve the Successor Agency Special Meeting Draft Action Minutes of February 11, 2014. [City Clerk] COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction. Speakers are limited to three minutes. Please state your name and address for the record before making your presentation. The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board.) B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Approval of Draft Resolution Authorizing a Master Agreement Between the City of Atascadero and the Successor Agency to the Community Redevelopment Agency of Atascadero  Fiscal Impact: The fiscal impact of this agreement is unknown at this time. Any expenditures made as a result of the Master Agreement would be paid using restricted bond proceeds pursuant to bond covenants.  Recommendation: Successor Agency Board approve the Draft Resolution authorizing a Master Agreement between the City of Atascadero and the Successor Agency to expend excess bond proceeds. BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities. Board Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Board may take action on items listed on the Agenda.) D. ADJOURNMENT ITEM NUMBER: SA A-1 DATE: 08/12/14 Atascadero Successor Agency February 11, 2014 Page 1 of 4 CITY OF ATASCADERO CITY COUNCIL IN THE CAPACITY OF SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 DRAFT ACTION MINUTES Tuesday, February 11, 2014 (Immediately following the City Council Regular Session) City Hall Council Chambers, 4th floor 6500 Palma Avenue Atascadero, California (Enter on Lewis Ave.) REGULAR SESSION – CALL TO ORDER: Mayor O’Malley called the meeting to order at 9:09 p.m . ROLL CALL: Present: Council Members Kelley, Moreno, Fonzi, Mayor Pro Tem Sturtevant, and Mayor O’Malley Absent: None 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. ITEM NUMBER: SA A-1 DATE: 08/12/14 Atascadero Successor Agency February 11, 2014 Page 2 of 4 Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Warren Frace, Public Works Director Russ Thompson, Police Chief Jerel Haley, Fire Chief Kurt Stone, and City Attorney Brian Pierik. APPROVAL OF AGENDA: MOTION: By Council Member Fonzi and seconded by Mayor Pro Tem Sturtevant to approve the agenda. Motion passed 5:0 by a roll-call vote. A. CONSENT CALENDAR: 1. Successor Agency Draft Action Minutes – September 24, 2013  Recommendation: Council in the capacity of the Successor Agency to the Redevelopment Agency of Atascadero approve the Successor Agency Special Meeting Draft Action Minutes of September 24, 2013. [City Clerk] MOTION: By Council Member Fonzi and seconded by Mayor Pro Tem Sturtevant to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. COMMUNITY FORUM: None B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Approval of Recognized Obligation Payment Schedule 14-15A July 1, 2014 – December 31, 2014  Fiscal Impact: None for this action.  Recommendation: Successor Agency Board approve the Draft Recognized Obligation Payment Schedule for the period of July 1, 2014 through December 31, 2014 (ROPS 14 -15A), including the Administrative Budget, pursuant to Health and Safety Code. [Administrative Services] Administrative Services Director Jeri Rangel gave the staff report and answered questions from the Council. ITEM NUMBER: SA A-1 DATE: 08/12/14 Atascadero Successor Agency February 11, 2014 Page 3 of 4 PUBLIC COMMENT: None MOTION: By Council Member Moreno and seconded by Council Member Kelley to approve the Draft Recognized Obligation Payment Schedule for the period of July 1, 2014 through December 31, 2014 (ROPS 14-15A), including the Administrative Budget, pursuant to Health and Safety Code. Motion passed 5:0 by a roll-call vote. 2. Long-Range Property Management Plan Acknowledgment and Transfer Ownership of Improvements and Personal Property to City of Atascadero  Fiscal Impact: None for this action.  Recommendation: Successor Agency Board: 1. Acknowledge and concur with the State Department of Finance response to the Long-Range Property Management Plan; and, 2. Approve Draft Resolution ordering the transfer to the City of Atascadero of title to the improvements and personal property previously identified on the Long-Range Property Management Plan Property as No. 3, Property No. 5, Property No. 6, Property No. 7, and Property No. 8. [Administrative Services] Administrative Services Director Jeri Rangel gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Mayor O’Malley and seconded by Council Member Kelley to: 1. Acknowledge and concur with the State Department of Finance response to the Long-Range Property Management Plan; and, 2. Approve the Draft Resolution ordering the transfer to the City of Atascadero of title to the improvements and personal property previously identified on the Long-Range Property Management Plan Property as No. 3, Property No. 5, Property No. 6, Property No. 7, and Property No. 8. Motion passed 5:0 by a roll-call vote. (#2: SA 2014-001) BOARD ANNOUNCEMENTS AND REPORTS: None ITEM NUMBER: SA A-1 DATE: 08/12/14 Atascadero Successor Agency February 11, 2014 Page 4 of 4 D. ADJOURNMENT Mayor O’Malley adjourned the meeting at 9:20 p.m. MINUTES PREPARED BY: ______________________________________ Marcia McClure Torgerson, C.M.C. City Clerk / Assistant to the City Manager ITEM NUMBER: SA C-1 DATE: 08/12/14 Successor Agency to the Community Redevelopment Agency of Atascadero Staff Report – Administrative Services Approval of Draft Resolution Authorizing a Master Agreement Between the City of Atascadero and the Successor Agency to the Community Redevelopment Agency of Atascadero RECOMMENDATION: Successor Agency Board approve the Draft Resolution authorizing a Master Agreement between the City of Atascadero and the Successor Agency to expend excess bond proceeds. DISCUSSION: The Atascadero Public Financing Authority (Authority), acting on behalf of the former Redevelopment Agency, issued $16,010,000 in Lease Revenue Bonds on September 1, 2010. The proceeds were designated to finance the City’s portion of the restoration of the Historic City Hall. Any excess bond proceeds were designated for the acquisition and development of other capital projects within the geographic b oundaries in the City. However, effective February 1, 2012, redevelopment agencies in the State of California were dissolved pursuant to ABx1 26, the “Dissolution Act.” This dissolution limited the former Agency’s capacity to use the bond funds for the City Hall project, or any additional project. Effective June 27, 2012, Assembly Bill 1484 (AB1484) passed and amended certain provisions of ABx1 26. One such provision, Section 34191.4, enables successor agencies to use unspent bond proceeds for the purposes for which the bonds were sold. Pursuant to Section 34191.4 (c)(1), bond proceeds derived from bonds issued on or before December 31, 2010, can be used for the purposes for which the bonds were sold after the State Department of Finance (DOF) has issued a Finding of Completion to the Successor Agency. The Successor Agency of the former Redevelopment Agency of Atascadero received the Finding of Completion from the DOF by letter dated March 8, 2013. Before a successor agency can use bond proc eeds or other funds to pay for expenses, it must have an enforceable obligation with another party, and that obligation ITEM NUMBER: SA C-1 DATE: 08/12/14 must be included on a Recognized Obligation Payment Schedule (ROPS) approved by the Oversight Board and the DOF. The legislation dictates strict timelines in which a successor agency may submit a ROPS, creating the potential for significant delays in funding projects with the excess bond proceeds. In order to resolve the timing delays caused by the ROPS process, the DOF allows successor agencies and their sponsoring city to draft a Master Agreement to expend excess bond proceeds in a more expedited manner. The agreement creates the enforceable obligation necessary to meet the ROPS criteria and eliminates the need to itemize every contract related to the use of bond proceeds on the ROPS. Instead, the enforceable obligation would be one line item on the ROPS as an obligation to the City. Currently, there are over 20 separate line items on the ROPS that relate to the City Hall project alone. By approving a Master Agreement, the ROPS will be streamlined with only one line item and will be less complicated for citizens to read and understand. In addition, there were two contracts that were part of the City Hall project that were not approved by the DOF as enforceable obligations on the ROPS. Those were the structural steel contract with Golden State Steel and the interior electrical work with Taft Electric. These two contracts were approved by Council on June 28, 2011. The cutoff date that DOF used to allow contracts as enforceable obligations was June 27, 2011 , the day before Council approved the contracts . However, because these contracts were vital to the timely completion of the City Hall project, work moved forward and the contractors were paid. The Master Agreement between the City and the Successor Agency will allow funding to cover these costs. If the authorization to execute the Master Agreement is approved by the City Council and the Successor Agency tonight, it will be p resented to the Oversight Board for consideration at their August 21, 2014 meeting. If approved at that time, the Master Agreement can be added as an enforceable obligation to the upcoming ROPS 14-15B for consideration by the Oversight Board. The Master Agreement and the ROPS are also subject to approval by the DOF. The City will be responsible for ensuring that the projects funded with excess bond proceeds are consistent with the Master Agreement, the bond covenants, the Redevelopment Plan, and the City’s purchasing policies. The City Council will approve the project(s) and all contracts that require Council approval in accordance with the purchasing policy. The use of the Master Agreement allows the City to move forward in a timely manner without having to wait for the review and approval of individual project expenses within the ROPS, which can be a window of anywhere between 3 and 10 months. In preparation for the September 2010 bond issue, the Redevelopment Agency Board, at their May 11, 2010 meeting, ranked a series of projects in order of most importance. The expectation was that in the event of excess bond proceeds, or as other funding became available, the projects would be completed in that priority order as ranked by the Board. ITEM NUMBER: SA C-1 DATE: 08/12/14 Figure 1 shows the ranking of projects as determined by the Agency Board on May 11, 2010. As indicated in the table, the Wayfinding Signage Project was the highest ranked project. The majority of the Wayfinding Signage project has been completed, partly funded by the Redevelopment Agency prior to dissolution and partly due to generous donations from the community. The next highest ranked project is the Downtown Pedestrian Bridge. Figure 1 Potential Projects ESTIMATED COST FONZI O'MALLEY BERAUD CLAY KELLEY PRIORITY Wayfinding Signage $50,000 - $100,000 60 50 30 50 20 42 Pedestrian bridge over Atascadero Creek $1,000,000 0 20 60 0 60 28 Downtown Parking $500,000 40 40 0 0 50 26 Transit Center (FUNDED BY OTHERS)50 60 0 0 0 22 Downtown Restroom $400,000 30 30 0 30 0 18 Stadium Park Improvements (NOT IN RDA)20 10 0 60 0 18 Archway sign $500,000 0 0 0 40 10 10 Atascadero Creek Trail Extension $900,000 10 0 40 0 0 10 Economic Development – Commercial Property Purchase $2,000,000 0 0 10 0 40 10 Zoo Wall $260,000 - $300,000 0 0 50 0 0 10 ATASCADERO REDEVELOPMENT AGENCY POTENTIAL REDEVELOPMENT PROJECTS - as ranked during Agency meeting 5/11/2010 The Downtown Pedestrian Bridge remains a high priority of the Board and the community. The City continues to search for alternate funding sources for this project, including a recently applied for grant. However, in the event that th e grant is not awarded or is awarded but is not sufficient to cover the entire costs of the project, the excess bond proceeds would be allocated to this project as needed. The amount of funding available and the timing this funding can be used is unknown at this time. The community has been fortunate to have the financial assistance of the Federal Emergency Management Agency (FEMA) and the State Office of Emergency Services (OES) to assist with the funding of the City Hall project. However, because additional costs of the project are still being determined, and because FEMA and OES continue the complex process of completing the close out reports, the amount of bond funds needed to pay for the local share of the City Hall project is still unknown. Thus, the amount of excess bond proceeds available to transfer to the City for additional projects per the bond covenants is also unknown. However, at such time as the amount is determined, and for any changes after that point, the approval of the Master Agreement will allow the funds to be transferred to the City and the approved project(s) may move forward. ITEM NUMBER: SA C-1 DATE: 08/12/14 FISCAL IMPACT: The fiscal impact of this agreement is unknown at this time. Any expenditures ma de as a result of the Master Agreement would be paid using restricted bond proceeds pursuant to bond covenants. ATTACHMENTS: 1. Draft Resolution 2. Master Bond Agreement between City of Atascadero and the Successor Agency for the Redevelopment Agency of Atascadero ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 1 DRAFT RESOLUTION RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOMENT AGENCY OF ATASCADERO AUTHORIZING A MASTER AGREEMENT BETWEEN THE CITY OF ATASCADERO AND THE SUCCESSOR AGENCY OF ATASCADERO TO TRANSFER EXCESS LEASE REVENUE BOND PROCEEDS TO THE CITY FOR BOND-ELIGIBLE PURPOSES WHEREAS, 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 for the former Community Redevelopment Agency of the City of Atascadero (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 WHEREAS, the City of Atascadero (City) is a municipal corporation organized and operating under the laws of the State of California; and WHEREAS, the Successor Agency received its Finding of Completion under Health and Safety Code Section 34179.7 from the California Department of Finance by letter dated March 8, 2013; and WHEREAS, Health and Safety Code Section 34191.4(c) allows a successor agency that has received a finding of completion to use bond proceeds from bonds issued prior to 2011 for any purposes for which the bonds were sold; and WHEREAS, the Successor Agency has “excess” bond proceeds, i.e., pre-2011 lease revenue bond proceeds that are not otherwise obligated for a project and are restricted to bond- eligible uses; and WHEREAS, the Successor Agency wishes to use such proceeds for redevelopment purposes consistent with bond covenants; and WHEREAS, Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) provides for a cooperative relationship between redevelopment agencies, and their successor agencies, and cities; and WHEREAS, Community Redevelopment Law (Health and Safety Code Section 33220(e)) authorizes a local public agency to enter into an agreement with a redevelopment agency, and its successor agency, to further redevelopment purposes; and ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 1 WHEREAS, the Successor Agency desires to commit to fund the City to undertake redevelopment activities in support of projects and programs eligible for redevelopment funding, which were not previously funded and obligated by the Successor Agency or the City, using excess lease revenue bond proceeds in a manner consistent with the original bond covenants; and WHEREAS, the City and the Successor Agency desire to enter into a Master Agreement to govern funding to the City for the costs of those projects and programs from current and future excess lease revenue bond proceeds; and WHEREAS, Community Redevelopment Law (Health and Safety Code Sections 33445 and 33679) authorizes a redevelopment agency, and its successor agency, to pay for the acquisition and development costs of publicly-owned buildings, facilities and improvements, if certain findings are made; and WHEREAS, Health and Safety Code Section 34177(l), as amended, requires a successor agency to prepare a Recognized Obligation Payment Schedule (“ROPS”) listing the former agency’s recognized enforceable obligations, payment sources, and related information for each six month fiscal period; and WHEREAS, Health and Safety Code Section 34191.4(c)(2)(A) requires that excess bond obligations be listed separately on a successor agency’s ROPS; and WHEREAS, the Successor Agency will list the Master Agreement on future ROPS as an obligation against excess lease revenue bond proceeds; NOW, THEREFORE, BE IT RESOLVED, by the Successor Agency of the Community Redevelopment Agency of Atascadero: Section 1. The Successor Agency Board hereby authorizes the Successor Agency Executive Director to negotiate and execute a Master Agreement (Exhibit A) with the City of Atascadero to transfer excess lease revenue bond proceeds to the City to fund redevelopment projects and programs not previously funded and obligated by the Successor Agency or the City, consistent with the bond covenants, in furtherance of the purposes of redevelopment under the California Community Redevelopment Law. Section 2. The Successor Agency Executive Director or his or her designee is authorized to transfer excess lease revenue bond proceeds from the Successor Agency to the City under the Master Agreement, including any excess bond proceeds currently held by the Successor Agency and any future excess bond proceeds received or held the Successor Agency. Section 3. The Master Agreement shall be reviewed and approved by the Counsel for the Successor Agency as to form and legality, and copies shall be placed on file with the Successor Agency Secretary. ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 1 Section 4. The Successor Agency Executive Director or his or her designee is authorized to take other action with respect to the Master Agreement consistent with this Resolution and its basic purposes. PASSED AND ADOPTED at a regular meeting of the Successor Agency Board held on the 12th day of August, 2014. On motion by _______ and seconded by ___________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: ABSENT: ADOPTED: SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Tom O’Malley, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: ____________________________________ Brian Pierik, City Attorney ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 2 1 MASTER AGREEMENT REGARDING EXPENDITURE OF EXCESS BOND PROCEEDS This Agreement Regarding Expenditure of Excess Bond Proceeds (“Agreement”) is entered into on _________________, 2014 by and between the Successor Agency to the Community Redevelopment Agency of Atascadero (“Successor Agency”) and the City of Atascadero, a municipal corporation (“City”). The Successor Agency and the City are hereinafter collectively referred to as the “Parties.” RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) (“CRL”), the former Redevelopment Agency of the City of Atascadero (“Redevelopment Agency”) had responsibility to implement the Redevelopment Plan (“Redevelopment Plan”) for the Atascadero Redevelopment Project, originally approved on July 13,1999, by Ordinance No.362 enacted by the City Council of the City of Atascadero (the “City Council”); and the Redevelopment Agency of the City of Atascadero (“RDA”). B. Pursuant to an Indenture of Trust dated as of September 1, 2010, and executed by and between the Atascadero Public Financing Authority (“Authority”) and the Bank of New York Mellon Trust Company, N.A. as Trustee (the “Indenture”), the Authority issued Lease Revenue Bonds, Series A in the original principal amount of $16,010,000 (hereafter “Lease Revenue Bonds”) for the purpose of financing certain repairs and improvements to the historic City of Atascadero City Hall and the acquisition and development of other capital projects within the geographic boundaries in the City of Atascadero. Specifically, in 2003 the historic City Hall had been significantly damaged by the San Simeon Earthquake, and the issuance of the Lease Revenue Bonds represented local agency cost sharing in the Federal Emergency Management Agency’s and California Emergency Management Agency’s agreement to fund in part the restoration of the historic structure. C. On June 28, 2011, unbeknownst to the City and RDA, the Governor had signed Assembly Bill x1 26 (“AB 26”), putting an immediate halt to all redevelopment activities in the State of California and providing for the wind-down and dissolution of redevelopment agencies. D. Pursuant to Resolution No. 2012-002 adopted by the City Council on January 10, 2012, the City agreed to serve as the Successor Agency to the Redevelopment Agency commencing upon dissolution of the Redevelopment Agency on February 1, 2012. E. On March 8, 2013 the Successor Agency received its Finding of Completion under Health and Safety Code Section 34179.7 from the Department of Finance. F. Health and Safety Code Section 34191.4(c) provides that once the Finding of Completion has been issued by the Department of Finance, the Successor Agency is authorized to use bond proceeds for the purposes for which the bonds were sold if such proceeds remain available after ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 2 2 the satisfaction of enforceable obligations that have been approved on a ROPS (hereafter, “Excess Bond Proceeds”). G. As of August 12, 2014, the Successor Agency expects to have Excess Bond Proceeds available from the Lease Revenue Bonds, and it is the intent of the Parties that all such Excess Bond Proceeds be used for the purposes for which the Lease Revenue Bonds were issued, specifically, for final payments and reimbursements on the now-completed City Hall repairs and improvements and for other capital projects to be undertaken within the Redevelopment Plan project area and with the Redevelopment Plan. In addition, the Federal Emergency Management Agency may request from the Successor Agency some of the proceeds of the Lease Revenue Bonds for City Hall project costs previously borne by that federal entity H. The execution of this Agreement was approved in a public meeting by the City Council acting in its capacity as the governing board of the City and in its capacity as the governing board of the Successor Agency August 12, 2014. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, the Parties hereby agree as follows. 1. Effective Date. Because the Department of Finance has issued a finding of completion to the Successor Agency and the Successor Agency has the authority to transfer excess bond proceeds, this Agreement shall become effective when it is deemed effective in accordance with Health & Safety Code § 34179(h). 2. Term. The term of this Agreement shall commence on the Effective Date, and shall continue in effect until the date that all Excess Bond Proceeds are expended in accordance with the requirements of this Agreement. 3. Use of Excess Bond Proceeds. The City agrees that it will use the Excess Bond Proceeds for financing improvements to the historic City of Atascadero City Hall and, if any Excess Bond Proceeds remain after those improvements are financed, for the acquisition and development of other capital projects within the geographic boundaries of the former RDA consistent with the requirements and covenants of the Lease Revenue Bonds, Series A and the provisions of the CRL that apply to the expenditure of redevelopment bonds, including but not limited to payments to the Federal Emergency Management Agency and the California Emergency Management Agency if so demanded by those entities. The Successor Agency acknowledges and agrees that a portion of the Excess Bond Proceeds will be used to reimburse the City for improvements to the historic City Hall for which contracts were not in place as of the date of adoption of AB 26 and for which the City utilized reserve and other funds to provide temporary or gap funding for the period of time between the adoption of AB 26 and the freeing-up of the Excess Bond Proceeds upon the issuance of the finding of completion. 4. Transfer of Excess Bond Proceeds. Upon the Effective Date, or as soon thereafter as Excess Bond Proceeds become available, the Successor Agency shall transfer Excess Bond Proceeds to the City, and the City shall deposit such funds into separate Excess Bond Proceeds ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 2 3 Accounts for City’s use in accordance with the terms, conditions, and purposed set forth in this Agreement. 5. Project Approvals; Environmental Review. This Agreement is not intended to limit in any manner the discretion of City in connection with the issuance of approvals and entitlements for the projects described in this Agreement, nor to avoid legally required processes attendant to project approval, including without limitation, the undertaking and completion of any required environmental review pursuant to CEQA and NEPA, as applicable, and the review and approval of plans and specifications. 6. Severability. If any term, provision, covenant, or condition set forth in this Agreement is held by the final judgment of a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force and effect to the extent that the basic intent of the Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or modify this Agreement in a manner such that the purpose of any invalidated or voided provision, covenant, or condition can be accomplished to the maximum extent legally permissible. 7. No Third-Party Beneficiaries; Assignments. Nothing in this Agreement is intended to create any third-party beneficiaries to this Agreement, and no person or entity other than the Successor Agency and the City, and the permitted successors and assigns of either of them, shall be authorized to enforce the provisions of this Agreement. 8. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 10. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 11. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. ITEM NUMBER: SA C-1 DATE: 08/12/14 ATTACHMENT: 2 4 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ATASCADERO By: Tom O’Malley, Mayor Attest: _______________________________ Marcia McClure Torgerson, C.M.C., City Clerk Approved as to form: _______________________________ Brian Pierik, City Attorney SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Rachelle Rickard, Executive Director