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HomeMy WebLinkAboutStaff ReportSTAFF REPORT This matter is a result of the Community Youth Athletic Center ("CYAC") legal challenge to the 2007 Redevelopment Plan Amendment. In addition to the Plan Amendment challenge, the CYAC made other claims, including violations of the Public Records Act and due process. This lawsuit has been working its way through the legal system since the Fall of 2007. Judge Denton invalidated the 2007 Redevelopment Plan Amendment, found that the Public Records Act was not complied with when draft notes and consultant's documents were not provided, and found the CYAC was not provided due process because they did not have sufficient time to object to the plan amendment. The Court's award of attorney's fees totaling approximately two -million dollars ($2,000,000) was appealed to the 4th District Court of Appeals. The case remains on- going as it has been remanded to the trial court for further proceedings after appeal regarding the attorneys' fees, and the CYAC has petitioned for review to the California Supreme Court. The remand to the trial court to determine the amount of attorneys' fees, if any, in light of the reversal of the due process claims, as well as other factors of consideration, will take time. The original judge has retired, thus a new judge will need to become familiar with this case, including the weeklong trial, so that an appropriate review can occur of the attorneys' fees claimed. Accordingly, this will require an extensive amount of legal work to examine CYAC's attorney bills in light of the Court of Appeals ruling. Thus, continued legal representation remains necessary. Bruce Beach and Rebecca Andrews of Best Best & Krieger, LLP ("BB&K") have been our outside counsel in this case. Given the nature and length of the case, additional funds in the amount of $53,500 are needed for the on -going appeal. The City Council has previously approved the following: 1. Original Agreement for Legal Services in the amount of $160,000 (November 12, 2010). 2. First Amendment to the Agreement in the amount of $134,000 (October 18, 2011). 3. Second Amendment to the Agreement in the amount of $70,000 (May 15, 2012). 4. Third Amendment to the Agreement in the amount of $45,000 (October 30, 2012). 5. Fourth Amendment to the Agreement in the amount of 53,500 (September 17, 2013). This Fifth Amendment to the Agreement in the amount of $100,000 is necessary for the ongoing litigation, which will bring the total not -to -exceed amount to $562,500. The Fifth Amendment will also require the approval of the Oversight Board and State Department of Finance prior to becoming effective. FIFTH AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, AND BEST BEST & KRIEGER, LLP This Fifth Amendment to Agreement is entered into this 18th day of February, 2014, by and between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY"), THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, a public body, corporate and politic, (the "SUCCESSOR AGENCY"), and BEST BEST & KRIEGER, LLP, (the "FIRM"). RECITALS A. The CITY, the SUCCESSOR AGENCY and the FIRM (the "Parties") entered into an agreement on October 9, 2010, ("the Agreement") wherein the FIRM agreed to provide legal services in the defense of the case entitled Community Youth Athletic Association v, All Persons Interested in the Matter of the Amendment to National City's Redevelopment Plan as Adopted by Ordinance 2007-2295, Case No. 37-2007-00076404-CU-EI-CTL, in the amount of $160,000, and subject to the terms of the Agreement. B. The Parties entered into the First Amendment to the Agreement on October 18, 2011, (the "First Amendment") to increase the not -to -exceed amount of the Agreement by $134,000, for a total Agreement not -to -exceed amount of $294,000. C. The Parties entered into a Second Amendment on May 15, 2012 to increase the not -to -exceed amount by $70,000 for a total not -to -exceed amount of $364,000. D. The Parties entered into a Third Amendment on October 30, 2012 to increase the not -to - exceed amount of the Agreement by $45,000 for a total not -to -exceed amount of $409,000. E. The Parties entered into a Fourth Amendment on September 3, 2013 to increase the not -to - exceed amount of the Agreement by $53,500 for a total not -to -exceed amount of $462,500. F. The Parties desire to amend the Agreement to increase the not -to -exceed amount of the Agreement by $100,000 for a total not -to -exceed amount of $562,500. G. The case remains on -going as it has been remanded to the trial court for further proceedings after appeal, and CYAC has petitioned for review to the California Supreme Court, thus continued legal representation remains necessary. H. On February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies Fifth Amendment to Agreement 2 National City, Successor Agency, and Best Best & Krieger, LLP