8O Consent 2012 0604 - Laserfiche WebLink

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File Number: 12 -289 On May 7, 2012, the City Council and the Successor Agency approved an Amended and Restated Cooperative Agreement, restoring funding for the Eden Road and Hays Street projects. The Amended and Restated Agreement was subsequently approved by the Successor Agency Oversight Board on May 10, 2012. At that meeting, the Oversight Board directed staff to further amend the Agreement to restore funding for the remaining projects, MacArthur Boulevard and Doolittle Drive. The action before the City Council and Successor Agency tonight would execute that request. Analysis Although the language of AB 1x 26 is relatively clear regarding the treatment of City- Agency agreements as unenforceable, many cities throughout California have questioned the Legislature's authority to invalidate financial agreements that pre -dated the dissolution bill and had the full force of law. Nevertheless, given the DOF's determination, the most prudent course of action for the Successor Agency at this time is to take advantage of a clause in AB 1x 26 that allows a Successor Agency to re -enter into an agreement with the City. This clause is contained in Health and Safety Code Section 34178 (a) and reads as follows: "Commencing on the operative date of this part, agreements, contracts, or arrangements between the city or county, or city and county that created the redevelopment agency and the redevelopment agency are invalid and shall not be binding on the successor agency; provided, however, that a successor entity wishing to enter or reenter into agreements with the city, county, or city and county that formed the redevelopment agency that it is succeeding may do so upon obtaining the approval of its oversight board." Re- authorized agreements between the City and Successor Agency must also receive approval from the Successor Agency Oversight Board. If approved by both the Successor Agency (City Council) and the Oversight Board, staff believes that the Agency's debts under the Cooperative Agreement will be restored as enforceable obligations on the ROPS. Funds to pay the obligation will be provided to the Successor Agency by the Alameda County Auditor Controller via the Redevelopment Property Tax Trust Fund and then the Successor Agency can pay the City, consistent with the terms of the Agreement. The original January 17, 2011 Cooperative Agreement pledged Agency funds for four projects: 1. Eden Road Construction: The estimated cost for this project is approximately $5,800,000, of which $800,000 represents land acquisitions costs already paid. The requested Agency contribution is $1,500,000. Remaining costs will be funded by an assessment district and other sources. 2. MacArthur Boulevard Streetscape Improvement: The estimated cost for this project is $1,274,143 all of which was to be funded by Redevelopment tax increment. 3. Doolittle Drive Streetscape Improvement: The estimated cost for this project is $4,193,611 all of which was to be funded by Redevelopment tax increment. 4. Hays Street Streetscape Improvement: The estimated cost for this project is $2,000,000 all of which was to be funded by Redevelopment tax increment. City of San Leandro Page 2 Printed on 512912012