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Home My WebLink About12-07 (Admin Budget & 3rd Amended Agreement)A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING AN ADMINISTRATIVE BUDGET AND THIRD AMENDED AGREEMENT AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH The Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency finds, determines and declares as follows: A. The Tustin Community Redevelopment Agency ("Agency") was established as a community redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL") and previously authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City of Tustin ("City"); and B. AB X1 26 ("AB26") added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code, which laws cause the dissolution and wind down of all redevelopment agencies ("Dissolution Act"); and C. On December 29, 2011, in the petition California Redevelopment Association v. Matosantos, Case No. 5194861, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California are subject to the Dissolution Act and were dissolved as of and on February 1, 2012; and D. The Agency is now a dissolved community redevelopment agency pursuant to the Dissolution Act; and E. By a resolution considered and approved by the City Council at an open public meeting on January 17, 2012 the City chose to become and serve as the "Successor Agency" to the dissolved Agency under the Dissolution Act; and F. As of and on and after February 1, 2012, the City serves as the "Successor Agency" and will perform its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all subject to the review and approval by the seven-member Oversight Board formed thereunder; and G. Pursuant to Section 34179, the Successor Agency's Oversight Board has been formed and the initial meeting has occurred on March 13, 2012; and H. Section 34179(e), as amended by Assembly Bill 1484 ("AB 1484"), requires all actions taken by the Oversight Board to be adopted by resolution; and Oversight Board Resolution 12-07 Page 1 of 4 I. Pursuant to Health and Safety Code (HSC) Section 34180(e), the Oversight Board, on May 29, 2012, approved the acceptance of financial assistance for the Phase I and Phase 2 Tustin Ranch Road Improvements Project conditioned upon the provision of matching funds to the City from the MCAS Tustin 2010 Tax Allocation Bonds by the Successor Agency. In compliance with HSC Section 34180(h), the Oversight Board also authorized the Successor Agency to enter into an amended reimbursement agreement with the City for the Successor Agency's matching contribution to the Tustin Ranch Road Improvements Project in the amounts of $5,983,863 for Phase 1 and $8,164,931 for Phase 2 to be disbursed from MCAS Tustin 2010 Tax Allocation Bonds to the City; and J. On August 14, 2012, the Successor Agency approved the Administrative Budget for the period of January 1, 2013 through June 30, 2013 and authorized the Successor Agency to enter into a Third Amended Agreement for Reimbursement of Costs with the City for Administrative Support and the provision of matching funds in the amount of $14,148,794 from the MCAS Tustin 2010 Tax Allocation Bonds proceeds for Phase 1 and Phase 2 Tustin Ranch Road Improvements Project; and K The Oversight Board has duly considered all other related matters and has determined that the approval of the Administrative Budget and Third Amended Agreement and submission to the California Department of Finance is in the best interests of the City and Agency and in the health, safety, and welfare of its N7 residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. 0 NOW, THEREFORE, BE IT RESOLVED BY A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY: Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. The Oversight Board approves the Third Amended Agreement attached hereto as Attachment No. 1 and incorporated herein, and further authorizes the Successor Agency to transmit this Resolution to the County Auditor-Controller, the State Department of Finance ("DoF"), and the State Controller's Office. Section 3. The City Manager of the Successor Agency or his authorized designee is directed to post this Resolution on the City/Successor Agency website. Section 4. This Resolution shall be effective after transmittal of this Resolution to the DoF and the expiration of five (5) business days pending a request for review by the DoF within the time periods set forth in Assembly Bill No. 1484, which amended the Dissolution Act and was approved by the Governor on June 27, 2012. In this regard, if MINOR 01- the DoF requests review hereof, it will have 40 days from the date of its request to M1 approve this Oversight Board action or return it to the Oversight Board for 1 -1 Oversight Board Resolution 12-07 Page 2 of 4 reconsideration and the action, if subject to review by DoF, will not be effective until approved by DoF Section 5. The Secretary of the Oversight Board shall certify to the adoption of this Resolution. F.11 IM Doug 'Dav Oversight the Tustin Amame Secretary igh of the Successor Agency to istin Community Redevelopment Agency 'Ihairman - rd of the Successor Agency to rimunity Redevelopment Agency Oversight Board Resolution 12-07 Page 3 of 4 STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS CITY OF TUSTIN 1, JERRY AMANTE, Secretary of the Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency, do hereby certify that the whole number of the members of the Agency Board is seven; that the above and foregoing Resolution No. 12-07 was duly passed and adopted at a regular meeting of the Oversight Board, held on the 28th day of August, 2012, by the following vote: BOARD MEMBER AYES: Davert, Fitzsimons, Amante, Nielsen, Puckett, Soria, West (7) BOARD MEMBER NOES: None (0) BOARD MEMBER ABSTAINED: -None (0) BOARD MEMBER ABSENT: None (0) Jdfry�mante,/Secr6taffy - Overr>t*'g'ht Board of the Successor Agency to the:T'ustin Community Redevelopment Agency Attachment No. 1 — Administrative Budget for January 1, 2013 through June 30, 2013 Attachment No. 2 — City and Successor Agency Third Amended Agreement for Reimbursement of Costs for Fiscal Year 2012-2013. Oversight Board Resolution 12-07 Page 4 of 4 M11113 10 01 a i January 1, 2013 through June 30, 2013 Object Position Code Percent to Total FY - Admin Adn in Costs JAN THRU JUN 2013 pmen 1 Enforceable Obligations Paid with RedeveiotProperty Tax Trust Fund $ 17,665,404 7,927,889 Estimated Property Tax allocated to Successory Agency 4 Administrative Cost Allowance for FY 12/13 7,927,889 3% $ 529,Em " 237,837 3,000 ESTIMATED EXPENSES EMPLOYEE DETAILS Object Position Fiscal Year - Total Code W es Benefits nd Percent to Total FY - Admin Admin Costs JAN THRU JUN 2013 _ Sub -Total Wages, Benefits and WC: $ $ $ I'iTuii APIAA1Mi; %iATIVC hintrT retc'ti Object Code Item Total During Fiscal Year 2012/13 Percent to Admin Total FY - Admin Costs JAN THRU JUN 2013 1 6147 Bank Service Charges 3,000 100% 3,000 11500 2 6355 Telephone 4,800 100% 4,800 2,400 3 6400 Office Supplies 5,200 100% 5,200 2,600 4 6415 Mail and Postage Service 1,600 100% 1,600 800 5 6420 Printing 9,000 100% 9,000 4,500 6 6710 7 6715 8 6730 9 6840 10 6845 11 6848 Meetings (staff) Training Expense Membership /Subscriptions Vehicle Mileage Vehicle Lease Equipment IT Support Services Sub -Total Admin Ccst Allowances: $ 0 0 0 200 6,800 36,500 67,100 100% 0 0 100% 0 0 100% 0 0 100% 200 100 100% 6,800 3,400 100% 36,500 18,250 $ 67,100 $ 33,550 CITY ADMINISTRATIVE SUPPC `+1 " ' 5TS BASED ON COST ALLOCATION (ATTACHED) Object Co4e Item Total During Fiscal Year 2012 1 Total FY - Admin Costs JAN THRU JUN 2013 1 City Administrative Support Costs based on Cast Allocation 836,000 26.2% 218,962 S 182,337 CITY ATTORNEY {contract services) Object Code Description of Services Total During Fiscal Year 2012 /13 Percent to Admin Total FY, Admin Costs JAN THRU JUN 2013 6017 City Attorney's Office - Woodruff, $ Spradlin & Smart (Including: Stradling Yocca Carlson & Rauth; Remy, Thomas, Moose & Manley, Waters & Company, Jeanette Justus). This does not include legal services from the following firms that are associated with project costs: 1) Armbruster Goldsmith & Delvac LLP; 2)Cappello and Noel LLP, and 3) Kutak Rock. Sub -Total City Attorney: $ 200,000 200,000 100% $ 200,000 $ - $ 200,000 $ SPECIFIC SERVICE5 (jrJ Revised FOPS and Draft ROPE) Object Code Description Total During Fiscal Year 2012/13 Percent to Admin Total FY - Admin Costs JAN THRU JUN 2013 1 6315 Lease of Office Space $ Sub -Total Specific Services: $ 43;900 43,900 100% $ 43,900 21,950 $ 43,900 $ 21,950 TOTAL ADMINISTRATIVE SERVICE COSTS Percent to Admin Total FV - Admin Costs JAN THRU JUN 2013 TOTAL ADMINISTRATIVE SERVICE COSTS $ 529,962 $ 237,837 ISUDGET - REVENUES (SURPLUS) /EXPENSES (DEFICIT) - _- _ 0 $ - J u 7; ct O OC IC (' 4 (3� to m � oc oc 00 CO O 09 CL cu 70 N O r— 7t oc C60 ('1 oc M CA d V 73 rq �oq E,4 E"i 00 ell oc 00 en L4 ;; ;; m Z� 00 Gog� Gn O cf) 4L� U u 73 8 U CL LL. C!3 U cl tu th CL C13 "73 ci u cd C.3 CL cl tb M. :3 cj 'A > to m 71 ro CL 74 cz to C3 CI CL 0 c) U U t Iz. cn F-4. 81 u ct O OC IC (' 4 (3� to m � oc oc 00 CO O 09 O N O r— 7t oc C60 ('1 oc M oc d V rq �oq E,4 E"i ell oc 00 en L4 ;; ;; m Z� 00 Gog� Gn ct O OC IC (' 4 (3� nLf) n— :� r- , :ra ti 09 O N O r— 7t oc C60 ('1 oc M d V M 'oe Gn ct :ra ti 09 r-� CL oc 0 ('1 oc M 'oe Gn ell oc 00 en L4 ;; ;; m Z� 00 Gog� Gn :ra ti 09 r-� CL oc M Gn O CL I THIRD AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN A. The Tustin Community Redevelopment Agency ("Agency") was established as a community redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL"), and previously authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City. B. The Tustin Housing Authority is a housing authority and public body corporate and politic organized, existing, and operating pursuant to the California Housing Authorities Law, Health and Safety Code Section 34200, et seq. C. Assembly Bill I X 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which laws caused the dissolution and wind down of all redevelopment agencies ("Dissolution Act"). NINE D. On December 29, 2011, California Redevelopment Association, et al. v. Matosantos, Case No. 5194861, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California are subject to the Dissolution Act and were dissolved effective February 1, 2012. E. The Agency is now a dissolved community redevelopment agency pursuant to the Dissolution Act. F. By a resolution considered and approved by the City Council at an open public meeting on January 17, 2012, the City chose to become and serve as the "City Successor Agency" to the dissolved Agency under the Dissolution Act. G. As of and on and after February 1, 2012, the City serves as the "City Successor Agency" and will perform its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all subject to review and approval by a seven-member Oversight Board formed thereunder. H. By a resolution considered and approved by the City Council at an open public meeting on January 17, 2012, and pursuant to California Health and Safety Code Section 34176 of the Dissolution Act, the City declined to assume the housing assets and functions of the Agency and MINOR, selected the Tustin Housing Authority to assume such housing assets and functions, and on such date, WN Val also pursuant to Section 34176, the Tustin Housing Authority accepted and assumed the housing I 10 assets and functions of the Agency and as of February 1, 2012 became and serves as the "Successor Housing Agency" of the former Agency pursuant to the Dissolution Act. At this time, assets Page I assigned and transferred by operation of law and to be assigned and transferred to the Successor Agency by authorization of and direction from the Oversight Board and operating pursuant to the Dissolution Act, are not adequate to fund administrative support costs and expenses unless any future Low and Moderate Income Housing fund balances are authorized to be transferred under State Law to the Successor Housing Agency. If this occurs, a future modification to this Agreement may be necessary. 1. City as the Successor Agency is engaged in activities necessary and appropriate to wind down the activities of Tustin Community Redevelopment Agency's Redevelopment Plans ("Redevelopment Plans") for the MCAS Tustin Project, the Town Center Project and the South Central Project ("Project Areas") that were originally adopted and amended by ordinances of the City Council. J. Employees of the City will perform day-to-day administration and operation of the Successor Agency's duties and functions. Since the Tustin Community Redevelopment Agency was originally formed and upon Successor Agency's effectiveness as of February 1, 2012, the City has provided and shall continue to provide services to the Successor Agency, including but not limited to providing administrative, accounting, auditing, planning, engineering, legal, risk management, financial, clerical, recordkeeping, and other services necessary for the Successor Agency to carry out its responsibilities. K. City and City Successor Agency entered into an Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan on March 20, 2012 (the "Original Agreement"), as amended by the First Amended Agreement on April 17, 2012 and the Second Amended Agreement on June 19, 2012 (the Original Agreement and all amendments shall be collectively referred to as the "Agreement") to document an on-going cooperative arrangement regarding administrative and operational services and payment for services whereby City agrees to provide administrative and operational services and City Successor Agency agrees to pay City for the cost of all such services to be provided by City for City Successor Agency pursuant to California Health and Safety Code Section 34177 0). L. Pursuant to Health and Safety Code (HSQ Section 34180(e), the Oversight Board, on May 29, 2012, approved the acceptance of financial assistance for the Phase I and Phase 2 Tustin Ranch Road Improvements Project conditioned upon the provision of matching funds to the City from the MCAS Tustin 2010 Tax Allocation Bonds by the Successor Agency. In compliance with HSC Section 34180(h), the Oversight Board also authorized the Successor Agency to enter into an amended reimbursement agreement with the City for the Successor Agency's matching contribution to the Tustin Ranch Road Improvements Project in the amounts of $5,983,863 for Phase I and $8,164,931 for Phase 2 to be disbursed from MCAS Tustin 2010 Tax Allocation Bonds to the City. M. The Oversight Board on May 29, 2012, authorized the City Successor Agency to enter into an amended reimbursement agreement with the City to reflect modifications to the Administrative Cost Allowance and Administrative Budget for Fiscal Year 2011-12 and Fiscal Year 2012-12, as requested by the California Department of Finance. NOW, THEREFORE, for and in consideration of the mutual promises, covenants and conditions herein contained, the parties hereto agree as follows: 1. Modification of Section I of the Original Agreement as it relates to Reimbursement of Administrative Expenses. ._ Em (a) Section 1.2 Reimbursement of Phase I and Phase 2 Tustin Ranch MASON WON Road Improvements Project Expenses is hereby deleted and replaced to read as follows: =011 FINE INNER "1.2 Reimbursement of Phase I and Phase 2 Tustin Ranch Road Improvements Project 011 Expenses. The City Successor Agency shall be liable to the City for a matching contribution and payment to be made to the Phase I and Phase 2 Tustin Ranch Road Improvements Project to be disbursed from MCAS Tustin 2010 Tax Allocation Bond proceeds to the City upon the effective date of the Third Recognized Obligation Payment Schedule. The required match from the MCAS Tustin 2010 Tax Allocation Bond proceeds for the Phase I Tustin Ranch Road Project is $5,983,863 and for the Phase 2 Tustin Ranch Road Project is $8,164,931, for a total match of $14,148,794 for Tustin Ranch Road Project expenses." 2. Modification of Section 2 of the Original Agreement as it relates to the Cost of Administrative Expenses and Administrative Cost Allowances for Fiscal Years 2011-12 and 2012-13. (a) Section 2.3 of the Original Agreement is hereby deleted and replaced "Section 2.3 City Successor Agency and City estimate that the cost of administrative and operational services to be provided by City to the City Successor Agency for the period of July 1, 2012 through June 30, 2013 is Five Hundred Twenty-Nine Thousand Nine Hundred and Sixty-Two Dollars ($529,962). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $529,962 to City to pay for the estimated administrative expenses of the City Successor Agency for the period of fiscal year 2012-13, subject to Oversight Board approval and City Successor Agency preparation and approval of an administrative budget estimate for such services and costs for the two upcoming six-month fiscal periods: 1) July 1, 2012 through December 31, 2012; and 2) January 1, 2013 through June 30, 2013. The City Successor Agency shall also be liable to the City for payment of any and all direct Project and Program Expenses incurred by City where they are adopted as part of the BOPS." 3. Miscellaneous. (a) Third Amended Agreement Ratified. Except as specifically amended or modified herein, each and every term, covenant and condition of the Original Agreement as amended is hereby ratified and shall remain in full force and effect. (b) Binding. This Third Amended Agreement and the Original Agreement shall be binding upon and inure to the benefit of the parties hereto. Page 3 IN WITNESS WHEREOF, the parties have caused this Third Amended Agreement to be executed by their officers thereunto duly authorized on the date first above written. "CITY" CITY OF TUSTIN, a California municipal corporation =1 Pamela Stoker, City Clerk 04 I'M I David Kendig, City Attorney John Nielsen, Mayor "CITY SUCCESSOR AGENCY" SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY 0 [VEY&W Pamela Stoker, City Clerk on behalf of the Successor Agency 01 M113 David Kendig, Legal Counsel John Nielsen Successor Agency Chairman Page 4