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HomeMy WebLinkAbout04 ADOPT RES 13-04 TO APPROVE AMENDED BUDGET & FOURTH AMENDED AGREEMENTAgenda Item 4 AGENDA REPORT Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency MEETING DATE. SUBJECT /ACTION FEBRUARY 26 2013 ADOPT OVERSIGHT BOARD RESOLUTION NO 13 -04 APPROVING THE AMENDED ADMINISTRATIVE BUDGET AND FOURTH AMENDED AGREEMENT BETWEEN THE CITY AND SUCCESSOR AGENCY FOR ADMINISTRATIVE SUPPORT RECOMMENDATION / PROPOSED ACTION It is recommended the Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency adopt Oversight Board Resolution No 13 -04 approving the Amended Administrative Budget and Fourth Amended Agreement between the City and the Successor Agency for Administrative Support, subject to the following condition. a) Should any subsequent modifications be required the City Manager and /or Finance Director or their authorized designee shall be authorized to make any augmentation, modification, additions or revisions as may be necessary subject to certification by the Oversight Board Chair (Note. This Resolution shall be effective after transmittal of this Resolution to the Department of Finance ( "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 In this regard, if the DoF requests review hereof it will have 40 days from the date of its request to approve this Oversight Board action or return it to the Oversight Board for reconsideration and the action, if subject to review by the DoF will not be effective until approved by the DoF ) BACKGROUND HSC Section 34177(j) requires the Successor Agency to prepare a proposed administrative budget for upcoming six month periods and submit it to the Oversight Board for approval. According to the HSC Section 34177(j) the administrative budget is to include all of the following: (i) estimated amounts of the Successor Agency's administrative costs for the up- coming six month fiscal period; (ii) the proposed sources of payment for the costs identified in (i) and (iii) proposals for arrangements for administrative and operations services provided by the city county city and county or other entity Pursuant to HSC Section 34171 the Administrative Budget for FY 2013- 2014 is payable from property tax revenues of up to three percent (3 %) of property tax allocated to the Redevelopment Obligation Retirement Fund during FY 2013 -14 In any Agenda Report February 26 2013 Page 2 event, the amount allocated for administrative costs shall not be less than Two Hundred Fifty Thousand Dollars ($250 000) for any fiscal year The proposed amended Successor Agency Administrative Budget for the period of July 2013 through December 2013 reflects the projected administrative costs in the Recognized Obligation Payment Schedule 13 -14A ( "ROPS 13 -14A') Under HSC 34177(k) the Successor Agency provides these administrative cost estimates to be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund to the County of Orange Auditor - Controller for each six month fiscal period Since the ROPS may change in the future staff also requests that any future modifications necessary to the Administrative Budget be authorized to be made by the City Manager or Finance Director subject to Oversight Board approval. In conjunction with the past approvals of the Administrative Budget for FY 2011 -12 and 2012 -2013 including each six month ROPS time frame the City and Successor Agency entered into an Agreement for reimbursement of costs incurred by the City to support Successor Agency operations and obligations (original agreement approved March 20, 2012, First Amendment on April 17, 2012; Second Amendment on June 19 2012; and Third Amendment on August 14 2012) The Oversight Board has previously authorized the Successor Agency to enter into subsequent amendments to this agreement to reflect the revised Administrative Budgets modified in conjunction with approval of the ROPS The administrative allowance for the July 2013 through December 2013 period as determined by the amount of Redevelopment Property Tax Trust Funds allocated in ROPS 13 -14A, is $218 554 a reduction from the previously approved ROPS administrative allowance of $267 837 for the period of January 1 2103 through June 30 2013 The total administrative allowance for FY 2013 -14 as determined by ROPS 13 -14A is $342,582. Staff is available to answer any questions the Oversight Board may have Attachment: Oversight Board Resolution No. 13 -04 OVERSIGHT BOARD RESOLUTION NO. 13 -04 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING THE AMENDED ADMINISTRATIVE BUDGET AND FOURTH AMENDED AGREEMENT BETWEEN THE CITY AND THE SUCCESSOR AGENCY FOR ADMINISTRATIVE SUPPORT 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. S194861 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 Successor Agency and otherwise unwind the Successor 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 13 -04 Page 1 of 4 I. On February 19 2013 the Successor Agency approved the Administrative Budget for the period of July 1 2013 through December 31 2013 and authorized the Successor Agency to enter into a Fourth Amended Agreement for Reimbursement of Costs with the City for Administrative Support; and J The Oversight Board has duly considered all other related matters and has determined that the approval of the Administrative Budget and Fourth Amended Administrative Agreement and submission to the California Department of Finance is in the best interest of the City and Agency and in the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. 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 Administrative Budget and Fourth Amended Agreement attached hereto as Attachment No. 1 and No. 2 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 request, if the DoF requests review hereof it will have 40 days from the date of its request to approve this Oversight Board action or return it to the Oversight Board for reconsideration and the action if subject to review by the DoF will not be effective until approved by the DoF Section 5 The Secretary of the Oversight Board shall certify to the adoption of this Resolution. Oversight Board Resolution 13 -04 Page 2 of 4 APPROVED AND ADOPTED this 26th day of February 2013. Doug Davert, Chairman Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency ATTEST Charles E. "Chuck' Puckett, Secretary Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency Oversight Board Resolution 13 -04 Page 3 of 4 STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS CITY OF TUSTIN I, CHARLES E. "CHUCK' PUCKETT 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. 13 -04 was duly passed and adopted at a regular meeting of the Oversight Board, held on the 26th day of February 2013, by the following vote: BOARD MEMBER AYES BOARD MEMBER NOES. BOARD MEMBERS ABSTAINED. BOARD MEMBERS ABSENT Charles E. 'Chuck' Puckett, Secretary Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency Attachment No 1 — Administrative Budget for July 1 2013 through December 31 2013 Attachment No. 2 — City and Successor Agency Fourth Amended Agreement for Reimbursement of Costs for Fiscal Year 2013 -2014 Oversight Board Resolution 13 -04 Page 4 of 4 ADMINISTRATIVE BUDGET FOR JULY 1, 2013 THROUGH DECEMBER 31, 2013 ATTACHMENT NO 1 ;/STIMATED REVENUES BUDGET FOR ADMINISTRATIVE EXPENSES (JUL THRU DEC 2013) SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Object Position Code Enforceable Obligations Paid with Redevelopment Property Tax Trust Fund Estimated Property Tax a ocated to Successory Agency 4 Administrative Cost Allowance for FY 13/14 fl Percent to Total FY - Admin Admin Costs 1.,119,3 3% $ 342,582 1UL THRU DEC 2013 7,285,126 7,285,126 218,554 ESTIMATED EXPENSES EMPLOYEE DETAILS Object Position Code Sub Total Wages Benefits and WC. Fiscal Year - Total Wages, Benefits and Percent to Total FY - Admin Admin Costs $ OTHER ADMINISTRATIVE DIRECT COSTS JUL THRU DEC 2013 $ Object Item Total During Fiscal Code Year 2013/14 Percent to Total FY Admin Admin Costs JUL THRU DEC 2013 1 6147 Bank Service Charges 3,000 100% 3,000 1,500 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 Meetings (staff) 0 100% 0 0 7 6715 Training Expense 0 100% 0 0 8 6730 Membership /Subscriptions 0 100% 0 0 9 6840 Vehicle Mileage 200 100% 200 100 10 6845 Vehicle Lease Equipment 6,800 100% 6,800 3,400 11 6848 IT Support Services 36,500 100% 36,500 18,250 Sub -Total Admin Cost Allowances $ 67,100 $ 67,100 $ 33,550 CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED) Object Item Total During Fiscal Code Year 2013/14 Total FY - Admin Costs JUL THRU DEC 2013 I City Administrative Support Costs 835,000 based on Cost Allocation 15.0" < ", 125,427 $ 110,004 CITY ATTORNEY (contract services) Object Description of Services Total During Fiscal Code Year 2013/14 Percent to Total FY - Admin Admin Costs JUL THRU DEC 2013 6017 City Attorney's Office Woodruff, $ 150,000 Spradlin & Smart (Including Stradling Yocca Carlson & Ruth. 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 100% $ 150,000 $ 75,000 Sub Total City Attorney: $ 150,000 $ 150,000 $ 75,000 SPECIFIC SERVICES (3rd Revised EOPS and Draft ROPS) Object Description Total During Fiscal Code Year 2013/14 Percent to Total FY - Admin Admin Costs JUL THRU DEC 2013 1 6315 Lease of Office Space 0 °oi, 0 Sub -Total Specific Services 5 $ $ - TOTAL ADMINISTRATIVE SERVICE COSTS Percent to Total FY - Admin Admin Costs JUL THRU DEC 2013 TOTAL ADMINISTRATIVE SERVICE COSTS $ 342,582 $ 218,554 BUDGET REVENUES (SURPLUS) /EXPENSES (DEFICIT) 0 $ m FA- ;To m 66 Eoq Z E C> C> a: C, °cs o CIS = 0 C> cn to cl y} "a cz E U 41 fll (U }l a U U o ON ti—"r. too M C) on > O ct3 0 CA 0 o ct cl U . = u u ;�- o - Le d 0 7u p- > co t as cd 0 5 CL L'i u "ID cc 'n - t:s 00 (D CL 0 cr ct Q) o n C-) Cl) LZ —C,3 to V5 cz CD ct ct (7 ul tD CA. 0 CL '4U to .cn cn ct 0 CL m to = .22 cn m = CO v a U CL Q) 0 < m FA- ;To m 66 Eoq C> C> C, °cs o C> 9z 9z C-) u ATTACHMENT NO. 2 FOURTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS (Fiscal Year 2013 -2014) I abed slasse 'awn 5141 lV •lay uo!lnloss!Q alp 01 luensand ,fau °Sy aawaoj a41 30 „XouaSy Su!snoH a0ssaoons, a41 se sanaas puu awroaq Z1oz 1 /Caenaga3 jo se pug iCouaSy a41 Jo suo!IOunf pue slasse Su!snoq 041 pawnssg pug palda00e ,Cluoylny Su!sno- uusny 041 `9LIb£ uo!laaS o1 luensand oslg 'ow Lions uo pug `suo!launj pug slasse Su!snoq gins awnssg of ,(luo4lny Su!snoH u!lsny 043 paloalas pug ,CouaSy a41 3o suollaun3 pug slasse Su!snoq alp awnssg 01 pau!Ioap A!3 041 •10y uo!lnlossia 043 3o 9Llb£ uo!10as apo3 ,Claps pug 4lluaH e!wojlle3 of lugnsind pug `ZIOZ 'LI Xaenuuf uo Su!laaw o!Ignd uado ug 1e I!0uno3 Xl!D a41 Xq panoadde pug paaap!suoo uonnlosaa a ,Cg J aapunaaagl pawaoj pitog 14Slsaano .iagwaw -uanas g Xq lenoaddg pug Ma!naa of loalgns Ile `sa!gj}e s,XouaSv a43 pu!Mun as!Maaglo puu XouaSy a41 3o suolluSllgo algeaoaojua a4l aals!u!wpe of lay uoun[oss!Q a4l aapun ,(ouaSe aossa00ns a41 se suolloun3 81! wopad II!M pug „,Coua8y aossaa0ns �C1!Q, a41 se somas 43 041 `Z10Z 1 ,Caenagad .ialue pug uo pue 3o sy •9 •loy uo!lnloss!Q 043 .iapun Xauo '' panloss!p 042 01 „,(ouaSy JossaaanS ,(lid„ 041 se anaas pue awooaq o1 aso40 iC3!3 043 `Z 10Z L l £aenue f uo Su!laaw oggnd uado ug le I!ouno3 ,(l!p a41 ,(q panoaddg pue paaap!suoo uo!lnlosal g 11 lay uo!lnloss!Q a41 01 luensand ,CouaSg luawdolanapaa A!unwwoa panloss!p a MOU s! ,Coua2y 'Z l OZ 1 XCagnaga,g an!10adfa panloss!p aaaM pue 10 ' uopnloss!Q 04101 laafgns aae g!wo39g3 u! sa!OUaSB luawdo[anapaa pe Xgaaa4l pug Loy uo!lnlossia 041 p[agdn lano3 awaadns e!womr3 041 1981761S '0N asg3 `solunsolnyy n In la 'uopmpossy luawdolanapad n/u.�o,�r /V3 '110Z `6Z aagwaoo u0 •a '( „lay uo!lnloss!Q „) sa!OUaSe luawdolanapaa 11U Jo uMOp pu!M pue uo!lnloss!p 041 pasne0 sMe1 go!4M `apo3 /C1appS 78 !quaff g!wo3!Iga °413o bZ uo!s!n!Q o1 58.1 puu 8.1 shed POPPe 9Z XI II!S Xlgwassy •3 .bas la `00Z4£ u0!100S 0p03 ,C1aJuS pue 41[eaH Mel sa!luoglny Su!snoH eluaod4e3 041 01 luensand Su!leaado pug t'u!1s!xa `paz!ueaao 0!1!1od puu aleaodaoo ,ipoq 0llgnd pug Xluoglne Swsno4 a s! ,(luoglny 2u!sn0H u!lsn f 041 •g ,Cl!3 Nip („1!0uno3 ,Cllr,.) 1launo3 Cl!3 a413o uo!10e 01 luensand ,CouaSg luawdolanapaa e jo saaMod 041 as!0aaxa pug ssau!snq l0esueal 01 pazpo4ing ,(Isno!naad pug `(„(1M3 „) *has la `000££ suollOaS apoD ,(laps pug 411eaH `mug luawdo[anapal1 ,C3!unwwo3 e!wo342D 041 aapun 2u!1s!xa pue paz!ugSao ,ilsnolnaad sum 1g41 ,(ouaEu luawdolanapaa ,(l!unwwoo e se pagsgqrsa seM (,XouaSy „) ,COUaay luawdolanapal/ ,C1!unwwo3 upsny a4j •V S'IV,LI931I •(„ ,fouaSV aossa00nS Xl!J „) ADN39V IN3I^1d073A3a3H A,LINRI4IL1iO3 NI.LSf11 311,E OL ADN39V 1IOSS399118 SV 9NLLDV NIISf1L 30 A,LI9 alp pug '( „,(1!3 „) uo!leaodao0 Ied!0!unw e!wo3!IEJ 'misfit 30 A1ID 041 SUOwe pue Xq £IOZ ` Jo se ow! paaalua pue apew s! („ luawaaJSy papuawy ylanog,•) NVO I SNOLLVl3dO ADN39V 1IOSS33Jf1S /A1I3 aNV SISOD 30 INIalk3S1I9HL1II31I 1103 1N311133U9V a3aM3 AIV HI1I903 s!4J. NVO'I SNOIIV1I3JO ADN39V HOSS3DDfIS /A113 (INV SISOD 30 ,LNawas1If1HL11I31I 1103 ,LN3b11331I9V a3als3LwwV H.LUIf103 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 I. City as the Successor Agency is engaged in activities necessary and appropriate to wind down the activities of Tustin Community Redevelopment Agencys 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, the Second Amended Agreement on June 19 2012, and the Third Amended Agreement on August 14 2013 (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 (j). L. 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 1 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 M. On December 18, 2012, the Department of' Finance issued a determination denying the Successor Agency's use of MCAS Tustin 2010 Tax Allocation Bonds to provide a matching contribution to the Tustin Ranch Road Improvements Project and, consequently, the Agreement has been modified to delete the reference under Section 1.2. N. The Oversight Board on August 28, 2013 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 13, as requested by the California Department of Finance. Page 2 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 1 of the Original Agreement as it relates to Reimbursement of Administrative Expenses. (a) Section 1.2 Reimbursement of Phase 1 and Phase 2 Tustin Ranch Road Improvements Project Expenses is hereby deleted. 2. Modification of Section 2 of the Original Agreement as it relates to the Cost of Administrative Expenses and Administrative Cost Allowances for Fiscal Year 2013 -14 . (a) Section 2.3 of the Original Agreement is hereby deleted and replaced as follows: "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, 2013 through June 30, 2014 is Three Hundred Forty -Two Thousand Five Hundred and Eighty -Two Dollars ($342,582). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $342,582 to City to pay for the estimated administrative expenses of the City Successor Agency for the period of fiscal year 2013 -14, 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 2013 through December 31 2013, and 2) January 1 2014 through June 30, 2014 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 ROPS." 3. Miscellaneous. (a) Fourth 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 Fourth 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 Fourth 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 By. Al Murray Mayor ATTEST Jeffrey C. Parker, City Clerk APPROVED AS TO FORM David Kendig, City Attorney "CITY SUCCESSOR AGENCY" SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY By. Al Murray Successor Agency Chairman ATTEST Jeffrey C. Parker, City Clerk on behalf of the Successor Agency APPROVED AS TO FORM David Kendig, Legal Counsel Page 4