2017-03-27 Oversight Board Agenda Packet (Special)California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the Oversight Board in open session are available for
public inspection. They may be inspected during regular business hours in the Office of the City Clerk at
Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org.
Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least
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Agenda
Special Meeting of the
Oversight Board of the Successor Agency
to the Redevelopment Agency of the City of Vernon
Monday, March 27, 2017, 1:00 p.m.
Council Chamber, City Hall
4305 Santa Fe Avenue
Vernon, California
Jonathan S. Fuhrman, Chairperson
William J. Davis, Board Member
Mary Gallagher, Board Member David Vela, Board Member Kelly Nguyen, Board Member
Vacant, Board Member
Vacant, Board Member
CALL TO ORDER & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the Oversight Board on any matter
that is within the subject matter jurisdiction of the Board. The public will also be given a chance to comment on
matters which are on the posted agenda during the Board’s deliberation on those specific matters.
ACTION ITEMS
1. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon, approving an agreement regarding expenditure of excess bond proceeds
between the Successor Agency and the City of Vernon [2005 Tax Allocation Bonds]
/ / /
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Agenda March 27, 2017
Page 2 of 2
Recommendation: A. Find that adoption of the proposed resolution for approval of the Agreement Regarding
Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] is exempt under the
California Environmental Quality Act (“CEQA”) because it is a government fiscal activity that
will not result in any change to the environment and, therefore, is not a “project” as defined by CEQA Guidelines Section 15378. Even assuming the activity were a “project”, it would be
exempt from CEQA review in accordance with CEQA Guidelines Section 15061(b)(3), the
general rule that CEQA only applies to projects that may have an effect on the environment; and
B. Adopt a resolution to approve an Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds]; and
C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps
to assure the provisions of said resolution are appropriately effectuated.
ORAL REPORTS
2. Brief reports on activities, other brief announcements, and directives to staff.
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was
posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe
Avenue, Vernon, California, on the City’s website not less than 24 hours prior to the meeting set forth on this
agenda. Dated this 23rd day of March, 2017.
By: ________________________________
Maria E. Ayala, Secretary
RECEIVED
MAR 2 3 20t7
CITY C[ERl('S OFFICE
R,ECEIVEE
MAR 2 3 2017
CIW ADMINISTRATION
U g-23-t1STAFF REPORT
SUCCESSOR AGENCY FOR THE
FORMER VERNON REDEVELOPMENT AGENCY
DATE:
TO:
FROM:
RE:
March27,2017
Honorable Chairperson and Members of the Oversight Board of the Successor
Agency to the Former Vernon Redevelopment Agency
wi[iam Fox, successor Agency Staff Me*b". d3f'
Originator: Iris Yang, Special Counsel to the Successor Agency
A Resolution Approving an Agreement Regarding Expenditure of Excess Bond
Proceeds [2005 Tax Allocation Bondsl
Recommendation
A. Find that adoption of the proposed resolution for approval of the Agreernent Regarding
Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] is exernpt under the
Califomia Environmental Quality Act C'CEQA") because it is a govemment fiscal activity
that will not result in any change to the environment and, therefore, is not a *project" as
defined by CEQA Guidelines Section 15378. Even assuming the activity were a *project",
it would be exernpt from CEQA review in accordance with CEQA Guidelines Section
15061(bX3), the general rule that CEQA only applies to projects that may have an effect on
the environment; and
B. Adopt a resolution to approve an Agreernent Regarding Expenditure of Excess Bond
Proceeds [2005 Tax Allocation Bonds]; and
C. Authorize Successor Agency staff, City Attomey and special counsel to take any necessary
steps to assure the provisions of said resolution are appropriately effectuated.
Backeround
Health and Safety Code Section 34191.4(c) provides that after the Successor Agency to the
Redevelopment Agency has received a Finding of Completion from the state Department ofFinance
('DOF"), the Successor Agency is authorized to use the bond proceeds from bonds issued on or
before Decernber 31, 2010, in a manner consistent with the original bond covenants. Further, the
Successor Agency may desigrrate the use ofand commit indebtedness obligation proceeds that were
derived from indebtedness issued for redevelopment purposes after January 1, 201 l, and that rernain
Page I of 2
available after the satisfaction of enforceable obligations that have been approved on a Recogrized
Obligation Payment Schedule C'ROPS) and that are consistent with the indebtedness obligation
covenants (hereafter "Excess Bond Proceeds").
The Successor Agency received its Finding of Completion from DOF on April 17 , 2013.
The Successor Agency and City previously approved an Agreernent Regarding Expenditure of
Excess Bond Proceeds [2005 Tax Allocation Bonds] ("Agreement") to transfer all the excess bond
proceeds from the Excess Bond Proceeds from the Redevelopment Agency's Industrial
Redevelopment Project Tax Allocation Bonds, Series 2005, dated October 4,2005 (the "2005
Bonds") held by the Successor Agency to the City to be expended in a manner consistent with the
applicable bond covenants. The Agreement was approved by the Oversight Board by Resolution
No. 42 on January 17, 2017 , and submitted to the State Deparrnent of Finance C'DOF) for review
as required by Health and Safety Code Section 34 179(h).
By letter dated March 10,2017, DOF notified the Successor Agency that it did not approve
Oversight Board Resolution No. 42 because the amount of excess bond proceeds specified to be
transferred to the City included bond reserves and tax revenue. DOF returned Resolution No. 42 to
the Oversight Board for reconsideration.
The City and Successor Agency have revised the Agreernent to revise the amount of 2005 bond
proceeds eligible for transfer to the City pursuant to Health and Safety Code Section 34191.4(c).
The revised Agreement must be approved by the Oversight Board, and is subject to review by DOF.
DOF has approved similar agreernents transferring bond proceeds from a Successor Agency to the
City. If the Agreement is approved by the Oversight Board, the Successor Agency may list the
Agreement as an enforceable obligation on the Recognized Obligation Payment Schedule
c'RoPs).
The proposed Agreement Regarding Expenditure of Excess Bond Proceeds between the City and
Successor Agency (which has been approved as to form by outside counsel) would permit all
Excess Bond Proceeds from the 2005 Bonds to be transferred from the Successor Agency to the
City, which in tum must use the proceeds in accordance with the bond covenants. As of June 30,
2016, the Successor Agency had $22,892,349.60 in Excess Bond Proceeds available from the 2005
Bonds. The exact amount of the Excess Bond Proceeds shall be determined by the Successor
Agency, and as agreed to by the DOF.
Fiscal Impact
Approval of the revised Agreement would allow the hansfer of the rernaining proceeds from the
2005 Tax Allocation Bond issuance to the City for the City to administer. These agreements have
been approved by the Department ofFinance for other successor agencies and their cities.
Attachment(s)
l. Resolution Approving the Agreement Regarding Expenditure ofExcess Bond Proceeds
[2005 Tax Allocation Bonds]2. Department ofFinance Letter Dated March 21,2017 (reference only)
Page 2 of 2
EDMUNo G'. BRowN JR. . I3oV:INOF
t I !l L lTlcrr a S^ca vlfo CA I 9!! l.]'37O4 a www.oor.c^.oov
March 21,2017
Mr. William Fox, Finance Department
City of Vemon
4ii05 Santa Fe A\renue
Vemon, CA 90058
Dear Mr. Fox:
Subject: 201 7-18 Annual Recognized Obligation Payment Schedule
Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), the City of Vemon Suc@ssor
Agency (Agency) submitted an annual Recognized Obligation Payment Schedule for the Period
of July 1, 2017 thmugh June 30, 2018 (ROPS 17-18) to the Califomia Department of Finance
(Finance) on January 31 , 2017 . Financ€ has cornpleted its revietv of the ROPS 1 7-18.
Eased on a sample of line items reviewed and application of the law, Finance made the
following determinations:
. ltem l.lo. 2 - Property Tax costs in th€ amount of $40,385 is not allou/ed. Pursuant to
HSC section 34171 (d) (1) (F), the cost of maintaining assets prior to disposition are
enforceable obligations. However, since the Agency no longer owns the property, his
item is no longer the obligation of the Ag€ncy. Therefore, this item is not an enforcoabl€
obligation and the requested amount of $40,385 b not eligible for Rede\,€lopment
Property Tax Trust Fund (RPTTF) funding.
With the Agencys concu,renoe, this it6m has b€en r€tired.
. ltem No. 29 - Expenditures of excess 2005 tax allocauon bond proceeds in the amount
of $25,685,0O4 is partially allowed. The Agency recei\r€d a Finding of Completion on
April 17,2013 and is allowed to exp€nd bond proceeds derived from bonds issued prior
to January 1, 2011 (pre-2011 bond proceeds) in a manner consistent with lhe bond
@venants.
The Agency inlends lo transfer excsss 2005 bond proceeds to th€ City of Vemon (City)
during the ROPS 17-18A pe.iod. ln order to transfer pre-2011 bond proceeds to the
City, a bond expenditure agreement betwesn the Agency aM City is required. Finance
deni€d the proposed bond expenditure agre€ment in our Oversight Board (OB)
Resolution No. 42 determinaton letter dated March 10, 2017 because the agre€menl
enoneously included funds that are not considered excess bond proceeds. Finance
estimates that of the amount requested, $22,562,707 is considered excess. Therefore,
$3,122,n7 $25,685,m4 - $22,562,707\is not approved for transfer. ln addition, before
Mr. William Fox
March 21, 2017
Page 2
any transfer can take place, a revised bond expenditure agre€ment must be approved
by the OB and Finance.
Except for the items adjusted, Finance is not obiecting to the remaining items listed on the
ROPS 17-18. lf th€ Agency disagr€os with Finance's determination with respect to any ilems
on the ROPS 17-18, excapt items which are the subj€ct of litigaton disputing Finance's previous
or related determinations, the Agency may request a Meet and Confer within fitre business days
of the date of this letter. The Meet and Confer process and guidelines are available on
Finance's website:
The Agency's maximum approved RPTTF distribuUon for the reporting period is $5'436'332 as
summarized in the Approved RPTTF Distribution table on Page 4 (see Attachment).
RPTTF distributions occur biannually, one disbibution for the July 1 , 2017 through
December 31, 2017 penod (ROPS A period), and one distribution for the January 1 , 2018
through June 30, 2018 period (ROPS B pedod) based on Finance's approved amounts. Since
Finance's determination is for the enlire ROPS 17-18 period, the Agency is authorized to
receive up lo the maximum approved RPTTF through the combined ROPS A and B period
distribulions.
On the ROPS 17-18 form, the Agency reported cash balances and activity for the period of
January 1,2016 through June 30,2016. Finance reviews the Agency's self-reported cash
balances on an ongoing basis. The Agency Should be prepared to submit financial records and
bridging documents to support the cash balances reported upon request.
The Agency was not required to report the estimated obligauons venius actual payments (Prior
period adjustment) associated with tho July 1, 2015 through June 30, 2016
period (ROPS 1 +16). The Agency will report actual payments for ROPS 1S16 on
ROPS 1&19, puniuant to HSC section 34186 (a) (1). A prior period adiustment may be applied
to the Agencys ROPS 1&19 RPTTF distribution. Therefore, the Agency should retain any
unexpended ROPS 1$16 RPTTF.
Absent a Meet and Confer, this is Finance's determination regarding the obligatons listed on
the ROPS 17-18. This determination only applies to items when funding was requested for the
12-month period.
The ROPS 17-'18 form submifted by the Agency and Finance's determination letter will be
posted on Finance's website:
Finance's determination is effective for the ROPS 17-18 period only and should not be
conclusively relied upon for future ROPS periods. All items listed on a future ROPS are subject
to review and may be denied even if not denied on this ROPS or a preceding ROPS. The only
exception is for items that have received a Final and Conclusive determination from Financ€
pursuant to HSC section U177.5 (i). Finance's review of Final and Conclusive items is limited
to confirming the scheduled payments as required by the obligation.
Mr. William Fox
Marclt 21,2017
Page 3
The amount available from the RPTTF is the same as the amount of prcperty tax incrernent
a\railable prior to the enactment of the redevelopmsnt dissolution law. Therefore, as a practical
matter, the ability to fund the items on the ROPS with property tax increment is limited to the
amount of funding available to the Agency in the RPTTF.
Please direct inquiries to Anna Kyumba, SupeMsor, or Veronica Zahridea, Lead Analyst, at
(e16)322-2985.
Sincerely,
cc: Ms. Kristina Bums, Manager, Department of Auditor-Controller, Los Angeles County
Mr. William Fox
March 21, 20'17
Page 4
Attachment
Approvsd RPTTF DlsHbdion
For th€ Friod ofJuly 2017 thmugh Juno 20lE
$ 3,931,647 $ 1,535,070 3 5,466,717
3,936,647 1,5a11,070 5fi6,71f
3,51,647 1,535,070 5,166,717
otal RPTTF App.oved for DistiMion 3
RESOIJUTION NO. OB-
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, APPROVING AN AGREEMENT REGARDING
EXPENDITI'RE OF EXCESS BOND PROCEEDS BETWEEN THE
SUCCESSOR AGENCY AND THE CITY OF VERNON
[2005 TAX AILOCATION BONDS]
WHEREAS, pursuant tso Assembly Bill X1 25, enacted on June 28,
2011, Assembly Bill 1484, enacted on ,June 27, 20L2, and ot.her
subsequent legislaE.ion (coIIeccively, the "Dissolution Law"), the
Redevelopment Agency of the CiEy of Vernon ( "Redevelopment. Agency" ) was
dissolved on February l, 20],2; and
WHEREAS, pursuants to HealEh and SafeEy Code Section 34173,
t.he cit.y of vernon electsed to serve as the Successor Agency to the
Redevelopment Agency and pursuant to Health and Safety code Section
34173 (g) . the Successor Agency is a separate public entity from the
Cit,y; and
WHEREAS, pursuant Eo Health and Safety Code Sectsion
34191.4(c) , after a successor agency has received a finding of
compleEion from the sEate Department of Finance ("DOF"), a successor
agency, with the approval- of its oversigh! board, may list enforceable
obligations to expend excess bond proceeds on its Recognized Obligation
Payment Schedule ("ROPS"), so long as such expendiEures are consistent
with the bond covenantsi and
WHEREAS, Ehe Successor Agency received a Finding of
Completion from DOF on April 17, 2013; and
WHEREAS, Ehe Successor Agency has excess bond proceeds from
the Redevelopment. Agency's IndusE.rial Redevelopment Project Tax
Allocat.ion Bonds, Series 2005 ("2005 Bonds,,); and
WHEREAS, the Successor Agency and City previously approved an
Agreement Regarding Expendicure of Excess Bond Proceeds [2005 Tax
Allocation Bondsl ("Agreement" ) Eo have all the excess bond proceeds
from lhe 2005 Bonds held by tshe Successor Agency transferred Eo the
City to be expended in a manner consistent. wiE.h t.he applicable bond
covenants, which Agreement was approved by the Oversight Board by
Resolut.ion No. 42 on January L7, 2017; and
WHEREAS, by letstser daEed March 10, 2077, the California
Deparlmen! of Finance ("DOF" ) notified Ehe Successor Agency that it was
not approving Oversighc Board Resolution No. 42 because the amount of
excess bond proceeds specified Eo be transferred tso the City included
2005 bond reserves and tsax revenue, and DOF returned ResoluEion No. 42
to the Oversight Board for recons ideratsion; and
WHEREAS, the City and Successor Agency revised the Agreement.
to revise the amount of 2005 bond proceeds eligible for transfer t.o the
City pursuant to Hea1tsh and Safety Code Section 34f9f .4 (c), and
submitEed said revised Agreement Eo Ehe OversighC Board for
reconsideration; and
WHEREAS, tshe Successor Agency had. as of June 30, 20L6,
approximaEely i22,892,349.50 in bond proceeds, with the exact amounc to
be transferred Co the City Eo be approved by the DOF.
NOW, THEREFORE, BE fT RESOLVED BY THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS
FOLLOWS:
DEL 1 -L(Jl\ .L :The Oversights Board of the Successor Agency to
the Redevelopment Agency of the CiEy of Vernon hereby finds and
deeermines that the above recitals are true and correct.
OverEighE, Board of tshe Successor Agency to
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SECTION 2: The
che Redevelopment. Agency of the CiEy of vernon hereby finds that this
actsion is exempt under t.he California Environmental QualiCy Act
('CEQA") because it is a governmenE fiscal activity EhaE will not
resulE in any change to the environment and, therefore, is noE a
"project" as defined by CEQA Guidelines Section l-5378. Even assuming
the activit.y were a "project", it would be exempt from CEQA review in
accordance with CEOA Guidelines SecE.ion l-5051(b) (3), the general rule
that CEOA only applies Eo projects Ehat may have an effect on the
environment,.
SECTION 3: The OversighE Board of the Successor Agency t.o
the Redevelopment Agency of tshe CiEy of Vernon hereby approves t.he
revised AgreemenE Regarding Expenditure of Excess Bond Proceeds [2005
Tax Allocation Bondsl , in subsEantially the same form as t.he copy
which is atcached heret.o as ExhibiE A.
SECTION 4: SubjecE t.o the condit.ions seE forth in Section
5, below, Ehe Successor Agency is hereby authorized and directed to
execule the Agreemenc Regarding Expenditure of Excess Bond Proceeds
[2005 Tax Allocat.ion Bonds] , subject to any minor, technical and
clarifying changes as may be approved by tshe Successor Agency Counsel.
The Successor Agency is further autshorized and direct.ed to Eake such
acEions as are necessary and appropriace to implement. said Agreement on
behalf of the Successor Agency.
SECTION 5:The approvals and authorizat.ions set, forth in
Seclions 3 and 4 of this Resolution are conditioned upon approval by
DOF of the Oversight Board's acEion under this ResoluEion to approve
the revised Agreement Regarding Expendilure of Excess Bond proceeds, or
if DOF does not request a review wit.hin five business days, the
Oversight Board's action becomes effective in accordance with said
3
Section 34179 (h) .
SECIION 5: The Secretary of the Oversight Board, shall
certify to the pa66age, approval and adoption of t,his resolution, and
tshe Secretary shall cause this reEolution and the Secrelary, s
cert.ification to be properly filed.
APPROVED AND ADoPTED this 2?th day of March, 2012.
Name:
Title: Chairman / Vice Chairman
ATTEST :
APPROVED
special Couneel to the Oversight Board
Iris Yang, Esq
-4-
STATE OF CALI FORNIA
COUNTY OF LOS ANGELES
I, Maria E. Ayafa, acting on behaff of the Oversight Board as j.ts
Secretary, do hereby certify Ehat. the foregoing Resolution, being
Resolution No. oB- , was duly passed, approved and adopted by the
Oversight Board of the Successor Agency Eo the Redevelopment Agency of
the City of Vernon aE a special meeting of the Oversight Board duly
held on ylarch 27, 2o!7, ar,d thereafter was duly signed by Ehe Chairman
or Vice Chairman of tshe Oversight Board.
Executed this day of March, 2017, aE Vernon, California.
Maria E. Ayala, secretary
(SEAI)
5
EXHIBIT A
Exhibit A
AGREEMENT REGARDING
EXPENDITURE OF EXCESS BOND PROCEEDS
[2005 Tax Allocation Bondsl
-5-
AGREEMENT REGARDING
EXPENDTTURE OF EXCESS BOND PROCEEDS
[2005 Tax Allocation Bonds]
This Agreement Regarding Expenditure of Excess Bond Proceeds ("Agreement") is
entered into this 2l't day of March, 2017, by and between the Successor Agency to the
Redevelopment Agency of the City of Vemon ("Successor Agency'') and the City of Vernon, a
charter city ('Citl). The Successor Agency and the City are hereinafter collectively referred to
as the "Parties."
RECITALS
A. Pursuant to the Community Redevelopment Law (Health & Saf. Code $33000 el
a/.) ("CRL"), the former Redevelopment Agency of the City of Vemon ("Redevelopment
Agency") was responsible for implernenting the Redevelopment Plan for the Industrial Project
Area (the "Redevelopment Project Area"), originally adopted by the City Council of the City of
Vemon ("City Council").
B. Pursuant to an lndenture of Trust Agreement, dated October l, 2005, executed by
and between the Redevelopment Agency and the Bank of New York Trust Company, N.A., as
Trustee, (the "Trust Agreernents"), the Redevelopment Agency issued Tax Allocation Bonds as
more fully described below (collectively, the "2005 Bonds").
C. Following dissolution of the Redevelopment Agency on February 1, 2012,
pusuant to Assanbly Bill lX 26, the City elected to serve as the Successor Agency to the
Redevelopment Agency. Pursuant to Health and Safety Code Section 3a173(g), the Successor
Agency is a separate public entity from the City.
D. Health and Safety Code Section 34191.4(c) provides that once the Successor
Agency has been issued a Finding of Completion by the Califomia Department of Finance
('DOF), the Successor Agarcy is authorized to use bond proceeds from bonds issued on or
before Decernber 31,2010, in a manner consistent with the original bond covenants. Further, the
Successor Agency may designate the use of and commit indebtedness obligation proceeds that
were derived from indebtedness issued for redevelopment purposes after January l, 2011, and
that remain available after the satisfaction of enforceable obligations that have been approved on
a Recognized Obligation Payment Schedule C'ROPS) and that are consistent with the
indebtedness obligation covenants (hereafter "Excess Bond Proceeds").
E. The DOF issued a Finding of Completion to the Successor Agency on April 17,
2013.
F. Health and Safety Code Section 34191.4(c) further provides that the expenditure
of Excess Bond Proceeds must be listed separately on the applicable ROPS.
AgI to Expend Excess Bond Proceeds [2005 Bonds]
fl r 76.00001\294E4 102 2
-t-
G. The Parties desire to enter into this Agreement to use the Excess Bond Proceeds
for the purposes identified in and consistent with the covenants contained in the Trust Agreonent
and related documents (the "Bond Covenants") and the requirements of the CRL, and to provide
for the Successor Agency to transfer the Excess Bond Proceeds to the City to be used for such
purposes.
H. The execution of this Agreement was approved in a public meeting of the City
Council and the Successor Agency on March 21, 2017.
I. This Agreement was approved by the Oversight Board for the Successor Agency
in a public meeting on 2017.
J. The Oversight Board's action to approve this Agreernent was submitted to DOF
pursuant to Health and Safety Code Section 34179(h), and DOF approved this Agreement on
20t7.
NOW, TIIEREFORE, in consideration of the murual covenants, conditions and
promises herein contained, the Parties hereby agree as follows:
l.
reference.
Recitals. The Recitals above are true and correct and are incorporated herein by
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 requirernents of this Agreement.
3. 2005 Bonds. The following bonds were issued by the Redevelopment Agency:
Redevelopment Agency ofthe City of Vernon Industrial Redevelopment Project Tax Allocation
Bonds, Series 2005, in the amount of $49,420,000, dated October 4,2005, to be used to finance
various public improvements within or benefiting the Redevelopment Project Area. As of June
30, 2016, the Successor Agency had approximately $22,892,349.60 in Excess Bond Proceeds
available from the 2005 Bonds. The exact amount of Excess Bond Proceeds shall be determined
by the Successor Agency, and as agreed to by the DOF.
4. Use of Excess Bond Proceeds. The City agrees that it shall use the Excess Bond
Proceeds available from the 2005 Bonds identified above solely for the purposes identified in
Recital G., above, or for other projects consistent with the 2005 Bond Covenants and the
provisions of the CRL, as may be amended from time to time, that apply to the expenditure of
such Excess Bond Proceeds.
5. Transmittal of Excess Bond Proceeds. Subject to the last sentence of Section 3,
above, upon the Effective Date, the Successor Agency shall transfer the Excess Bond Proceeds
(including any interest accrued thereon as of the Effective Date) to the City, and the City shall
deposit such funds into a separate 2005 Excess Bond Proceeds Account for the City's use in
accordance with the terms, conditions and purposes set forth in this Agreernent.
Agt to Expend Excess Bond Proceeds [2005 Bonds]
E I I 76 00003\29484 | 02 2
2
6. Project Approvals: Environmental Review. This Agreernent is not intended to
limit in any manner the discretion of the City in connection with the issuance of approvals and
entitlements for the projects described in this Agreernent, nor to avoid legally requked processes
attendant to project approval, including, without limitation, the unde(aking and completion of
any required environmental review pursuant to the Califomia Environmental Quality Act and the
National Environmental Protection Act, as applicable, and the review and approval of plans and
specifications.
7. Severabilitv. If any term, provision, covenant, or condition set forth in this
Agreernent is held by the final judgrnent 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
modiff this Agreement in a manner such that the purpose ofany invalidated or voided provision,
covenant or condition can be accomplished to the maximum extent legally permissible.
8. No Third-Party Beneficiaries: Assimments. 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
thern, shall be authorized to enforce the provisions of this Agreement.
9. 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 conternplated by this Agreement.
10. Govemins Law. This Agreement shall be govemed by and construed in
accordance with the laws of the State of Califomia.
11. Counterparts. This Agreernent may be executed in counterparts, each of which
shall be deerned an original and all of which shall constitute but one and the same instrument.
12. Amendment. This Agreernent may be modified or amended, in whole or in part,
only by an instrument in writing, executed by the Parties.
13. Effective Date. This Agreernent shall be effective when signed by both parties,
and approved by the Oversight Board and DOF.
Agt to Expend Excess Bond Proceeds [2005 Bonds]
8 I I 76 00003U94E4 102 2
3
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
CITY OF VERNON SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
By:
Carlos Fandino, City Administrator Chairperson
Attest:
Maria E. Ayal4 City Clerk
Approved as to Form:Approved as to Form:
By:
Hema Patel, City Attomey Legal Counsel
Agt to Expend Excess Bond Proceeds [2005 Bonds]
8r r76 00003u9484 t 02 2
By:
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