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Home My WebLink About80A - JOINT - SA PEEBLER AGMTREQUEST FOR COUNCIL / SUCCESSOR AGENCY ACTION CITY COUNCIL MEETING DATE: MAY 19, 2015 TITLE: SECOND AMENDMENT AND EXTENSION OF SETTLEMENT AGREEMENT AND MUTUAL AND GENERAL RELEASE WITH GERALD PEEBLER FOR THE CONSTRUCTION OF PUBLIC IMPROVEMENTS WITHIN THE SOUTH MAIN CORRIDOR {ST77?W C. CITY MANAGER RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: UT-J-7561wk ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 ®t Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute the second amendment and extension of the settlement agreement and mutual and general release with Gerald Peebler to extend the deadline for Peebler /UCI to submit the list of proposed public improvements to December 31, 2015, and the deadline for the City to review and approve the list will be extended to March 31, 2016, subject to non - substantitive changes approved by the City Manager and City Attorney. SUCCESSOR AGENCY ACTION Authorize the City Manager and the Clerk of the Council to execute the second amendment and extension of the settlement agreement and mutual and general release with Gerald Peebler to extend the deadline for Peebler /UCI to submit the list of proposed public improvements to December 31, 2015, and the deadline for the City to review and approve the list will be extended to March 31, 2016, subject to non - substantitive changes approved by the City Manager and City Attorney. DISCUSSION On November 18, 2014, the City Council authorized a Settlement Agreement and Mutual and General Release with Gerald Peebler. The Settlement Agreement, dated November 14, 2014, stipulated the establishment and deposit of $4.7 million into the "Peebler Fund" for the 80A -1 Second Amendment and Extension — Settiement Agreement May 19, 2015 Page 2 construction of public improvements within the South Main Corridor area, $250,000 for design services to be provided by Gensler and Associates, and other provisions. One of those provisions specified that within six months of the date of the original settlement agreement, Peebler /University of California, Irvine School of Law, Community and Economic Development Clinic ( "UCI ") is required to submit a list of proposed public improvements to the City for review and approval, and that the City will be required to approve the list of publicimprovements for development within nine months of the date of the agreement. These deadlines are currently May 14, 2015 and August 14, 2015, respectively. To date, Peebler /UCI has not executed the agreement with Gensler and Associates for design services and is not ready to submit the list of proposed public improvements by the May 14, 2016 deadline. Therefore, Peebler /UCI has requested an extension of the deadlines. In order to provide Gensler sufficient time to provide the design services in order for the list of proposed public improvements to be developed, It Is recommended that Peebler /UCI's request be granted, Therefore, the Second Amendment and Extension of Settlement Agreement and Mutual and General Release (Exhibit 1) will extend the deadline for Peebler /UCI to submit the list of proposed public improvements to December 31, 2015, and the deadline for the City to review and approve the list will be extended to March 31, 2016. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets). FISCAL IMPACT There is no fiscal impact associated with this action, Kelly Reenders Executive Director Community Development Agency kr /sg /sb Exhibit; 1. Second Amendment and Extension of Settlement Agreement and Mutual and General Release 80A -2 SECOND AMENDMENT AND EXTENSION OF SETTLEMENT AGREEMENT AND MUTUAL AND GENERAL RELEASE This Second Amendment and Extension of Settlement Agreement and Mutual and General Release ( "Amendment ") is entered into this 19' day of May, 2015, by and between Gerald Peebler ( "Pechter "), the City of Santa Ana, a charter city and municipal corporation ( "City ") and the Successor Agency to the Former Redevelopment Agency of the City of Santa Ana ( "Successor Agency"). Peebler, City and Successor Agency are collectively referred to herein as the "Parties," RECITALS: A. The Parties entered into the Settlement Agreement and Mutual and General Release ( "said Agreement ") dated November 14, 2014 whereby the City agreed to establish and deposit Four Million Seven Hundred Thousand Dollars ($4,700,000) into a separate fund (the " Peebler Fund ") which was to be used solely for the following purposes: a. Construction of public improvements (the "Public Improvements ") as proposed to be developed by Gensler and Associates in the South Main Corridor (as defined below) and as approved by the City, as more fully set forth in said Agreement, b. Administrative and related costs incurred by the City arising from and related to the implementation of said Agreement, in an amount not to exceed Twenty Percent (20 %) of the cost of the Public Improvements; and c. Peebler's litigation costs in the amount of Six Thousand Four Hundred Nineteen Dollars and Thirty -three Cents ($6,419.33) to be paid to the University of California, Irvine School of Law, Community and Economic Development Clinic ( "UCI" ). B. In addition to the Peebler Fund, City agreed to allocate an additional Two Hundred Fifty Thousand Dollars ($250,000) ( "Design FunW') to pay for the services of Gensler and Associates ( "Gensler ") to develop a plan for the Public Improvements in the South Main Corridor. As used in said Agreement, "South Main Corridor" means (i) South Main Street between Warner Avenue and First Street; and (ii) First Street between Parton Street and Standard Avenue, "Public Improvements" was defined to mean public facilities, streets, drains, sewers, parks, sidewalks, streetscapes, landscaping and lighting located on public property or in public rights -of -way. C. Per said Agreement, UCI was to contract with Gensler to prepare the Public Improvement projects for the South Main Corridor, and submit claims to the City for reimbursement, along with supporting documentation, for payment to Gensler. The Parties agreed that in no event shall the City be obligated to pay more than Two Hundred Fifty Thousand Dollars ($250,000) for the costs of the design work for the South Main Corridor Public Improvements. ;ir D. Said Agreement was amended on January 30, 2015 to clarify that certain litigation costs ($998,75) awarded by the trial court in Peebler v. Department of Finance, Sacramento County case mumbo 34- 2012 - 80001172 -CU -MW -GDS were to be paid to UCI from the Peebler Fund by the City /Successor Agency, E. Said Agreement contained cert,, n timeframes and deadlines that must be amended and extended by this Second Amendment. NOW, THEREFORE, for and in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows; The second paragraph of Section 3 of said Agreement shall be amended and extended to allow for an additional seven (7) months for UCI and /or Design Finn to submit a list of proposed Public Improvements to City for review and approval on or before December 31, 2015, so that a list of City - approved Public Improvements can be developed within ten (10) months of the date of this Amendment or by March 31, 2016, 2. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. {Signatures on Following Page) • I M IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to said Agreement the date and year first above written. ATTEST: Maria Huizar Clerk of the Council APPROVED AS TO FORM: Sonia Carvalho, City Attorney Lisa Store](, Assistant City Attorney RECOMMENDED FOR APPROVAL: Kelly Reenders, Executive Director Community Development Agency CITY OF SANTA ANA David Cavazos City Manager SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA David Cavazos City Manager SCOTT PEEBLER, as successor in interest to Gerald Peebler APPROVED AS TO FORM: Carrie Hempel, University of California Irvine School of Law • 11. FORM FO.,