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HomeMy WebLinkAbout2012 CON SA Best, Best & Krieger - Amendment #2 Legal ServicesSECOND 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 Second Amendment to Agreement is entered into this 15th day of May, 2012, 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 CDC 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 case remains on -going as it is on appeal, and requires continued legal representation. D. The Parties desire to amend the Agreement to increase the not -to -exceed amount of the Agreement by $70,000. E. On January 10. 2012, the City Council adopted Resolution No. 2012-15, pursuant to Part 1.85 of the California Health and Safety Code, electing for the City to serve as the successor agency to the CDC upon the dissolution of the Redevelopment Agency. F. On February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying. performing and enforcing the enforceable obligations of the former redevelopment agencies. G. This Second Amendment will require the approval of the Oversight Board to the Successor Agency prior to being effective. NOW, THEREFORE, the CITY OF NATIONAL CITY, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, AND BEST BEST & KRIEGER, LLP, hereto agree that the Agreement entered into on October 9, 2010, and amended on October 18, 2011, shall be amended by amending Article 3 (Compensation), Section C of the Agreement by increasing the not -to -exceed amount by $70,000, for a total not -to -exceed amount of $364,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 9, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first above written. SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVEL9DMENT AGENCY By: Ron Morrison, Chairman APPTO FORM: By: dia Iva Successor ; ncy Counsel CITY OF NIONAL CITY By: RoT1 Morrison, Mayor APPRI VED AS TO FORM: By: C':' dia City Atto -2- BEST, BEST, & KRIEGER, LLP By: ba.r..._ Lam, 72-2 .. Bruce Beach, Esq. Second Amendment to Agreement City of National City, Successor Agency and BBK RESOLUTION NO. 2012 — 10 RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT FOR LEGAL DEFENSE SERVICES 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, TO INCREASE THE NOT TO EXCEED AMOUNT BY $70,000, FOR A TOTAL AMOUNT OF $364,000 WHEREAS, on November 23, 2010, the City Council adopted Resolution No. 2010-254, and the Community Development Commission of the City of National City ("CDC") adopted Resolution No. 2010-265, approving an Agreement between the City of National City, the CDC, and Best Best & Krieger, LLP ("BB&K"), to provide legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation in the not to exceed amount of $160,000; and WHEREAS, on October 18, 2011, the City Council adopted Resolution No. 2011-229, and the CDC (now the Successor Agency) adopted Resolution No. 2011-233, approving the First Amendment to the Agreement that increased the not to exceed amount by $134,000, bringing the total not to exceed amount to $294,000; and WHEREAS, the Second Amendment to the Agreement in the amount of $70,000 is necessary for the on -going appeal process, which will bring the total not -to -exceed amount to $364,000; and WHEREAS, the Second Amendment must also be approved by the Oversight Board to the Successor Agency prior to being effective. NOW, THEREFORE, BE IT RESOLVED that the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency hereby authorizes the Chairman to execute the Second Amendment to the Agreement 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 ("BB&K"), to increase the not to exceed amount by $70,000, for a total not to exceed amount of $364,000, to cover charges for continuing legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation. Said Second Amendment to the Agreement is on file in the office of the City Clerk. ATTEST: PASSED and ADOPTED this 15th day of May, 2012 ;o Michael R. Dalla, City Clerk as Secretary to the Successor Agency on orrison, Chairman A "RO . D AS TO FORM: C . a -GAM Silva •A. ncy Counsel Passed and adopted by the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California, on May 15, 2012 by the following vote, to -wit: Ayes: Boardmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California ity Clerk Servir'ig as Secretary to the Successor Agency By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2012-10 of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California, passed and adopted on May 15, 2012. City Clerk Serving as Secretary to the Successor Agency By: Deputy SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY AGENDA STATEMENT MEETING DATE: May 15, 2012 AGENDA ITEM NO. 2 1 C) ITEM TITLE: Resolution of the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency authorizing the Chairman to execute a Second Amendment to the Agreement for Legal Defense Services between the City, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, and Best Best & Krieger, LLP, to increase the not to exceed amount by $70,000, for a total amount of $364,000 PREPARED BY: Claudia Gacitua Silva PHONE: Ext. 4222 DEPARTMENT: SuCC EXPLANATION: APPROVED BY: Please see attached staff report. r Agency Council FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS Funds are budgeted in Account 511-445-460-213-0000. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt proposed resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Staff report Second Amendment to the Agreement with BB&K for Legal Services Proposed resolution STAFF 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. Currently, the case is on appeal from Judge Denton's decision. 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. CYAC has cross -appealed on all the claims in which the Court held against them. And, the City and Successor Agency (formerly the CDC) have appealed the Court's award of attorney's fees totaling approximately two -million dollars ($2,000,000). Bruce Beach and Rebecca Andrews of Best Best & Krieger, LLP ("BB&K) has been representing the City and CDC (now the SA) in this case. Given the nature and length of the case, additional funds in the amount of $70,000 are needed for the on -going appeal. The City Council has previously approved the following: 1. Original Agreement for Legal Services between the City, CDC, and Best Best & Krieger, LLP ("BB&K) dated November 23, 2010, in the amount of $160,000 2. First Amendment to the Agreement dated October 18, 2011, in the amount of $134,000. This Second Amendment to the Agreement in the amount of $70,000 is necessary for the on- going appeal process, which will bring the total not -to -exceed amount to $364,000. The appeal process is anticipated to be completed and decision rendered within the next 18 months. Because all redevelopment agencies were dissolved by the State, this Second Amendment is between the City, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, and BB&K. The Second Amendment will also require the approval of the Oversight Board to the Successor Agency prior to being effective. RESOLUTION NO. 2012 — RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT FOR LEGAL DEFENSE SERVICES 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, TO INCREASE THE NOT TO EXCEED AMOUNT BY $70,000, FOR A TOTAL AMOUNT OF $364,000 WHEREAS, on November 23, 2010, the City Council adopted Resolution No. 2010-254, and the Community Development Commission of the City of National City ("CDC") adopted Resolution No. 2010-265, approving an Agreement between the City of National City, the CDC, and Best Best & Krieger, LLP ("BB&K"), to provide legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation in the not to exceed amount of $160,000; and WHEREAS, on October 18, 2011, the City Council adopted Resolution No. 2011-229, and the CDC (now the Successor Agency) adopted Resolution No. 2011-233, approving the First Amendment to the Agreement that increased the not to exceed amount by $134,000, bringing the total not to exceed amount to $294,000; and WHEREAS, the Second Amendment to the Agreement in the amount of $70,000 is necessary for the on -going appeal process, which will bring the total not -to -exceed amount to $364,000; and WHEREAS, the Second Amendment must also be approved by the Oversight Board to the Successor Agency prior to being effective. NOW, THEREFORE, BE IT RESOLVED that the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency hereby authorizes the Chairman to execute the Second Amendment to the Agreement 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 ("BB&K"), to increase the not to exceed amount by $70,000, for a total not to exceed amount of $364,000, to cover charges for continuing legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation. Said Second Amendment to the Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 15th day of May, 2012 Ron Morrison, Chairman ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk as Claudia Gacitua Silva Secretary to the Successor Agency Successor Agency Counsel SECOND 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 Second Amendment to Agreement is entered into this 15th day of May, 2012, 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 CDC 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. 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 case remains on -going as it is on appeal, and requires continued legal representation. • D. The Parties desire to amend the Agreement to increase the not -to -exceed amount of the Agreement by $70,000. E. On January 10, 2012, the City Council adopted Resolution No. 2012-15, pursuant to Part 1.85 of the California Health and Safety Code, electing for the City to serve as the successor agency to the CDC upon the dissolution of the Redevelopment Agency. F. On February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies. G. This Second Amendment will require the approval of the Oversight Board to the Successor Agency prior to being effective. NOW, THEREFORE, the CITY OF NATIONAL CITY, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, AND BEST BEST & KRIEGER, LLP, hereto agree that the Agreement entered into on October 9, 2010, and amended on October 18, 2011, shall be amended by amending Article 3 (Compensation), Section C of the Agreement by increasing the not -to -exceed amount by S70,000, for a total not -to -exceed amount of $364,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 9, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first above written. SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY By: Ron Morrison, Chairman APPROVED AS TO FORM: By: Claudia G. Silva Successor Agency Counsel CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: By: Claudia G. Silva City Attorney BEST, BEST, & KRIEGER, LLP By: j .LLO , _ I )42f Bruce Beach, Esq. - 2 - Second Amendment to Agreement City of National City, Successor Agency and BBK OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 INCORiPORATE' Michael R. Dalla, CMC - City Clerk 619-336-4228 phone / 619-336-4229 fax May 22, 2012 Mr. Bruce Beach Best, Best & Krieger, LLP 655 West Broadway, 15th Floor San Diego, CA 92101 Dear Mr. Beach, On May 15t1i, 2012, Resolution No. 2012-105 was passed and adopted by the City Council of the City of National City and Resolution No. 2012-10 was passed and adopted by the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, authorizing execution of a Second Amendment to an Agreement with Best, Best & Krieger, LLP. We are enclosing for your records certified copies of the above Resolutions and a fully executed original copy of the Amendment. Michael R. Dalla, CMC City Clerk Enclosures