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HomeMy WebLinkAbout07-ATTACHMENT 1 (CITY COUNCIL RESOLUTION NO. 15-03)ATTACHMENT CITY COUNCIL RESOLUTION NO. 15 -03 RESOLUTION NO. 15 -03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING AND REINSTATING THE WORKING CAPITAL LOAN AND ADMINISTRATIVE SERVICES AGREEMENT BETWEEN THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY The City Council of the City of Tustin hereby finds, determines and declares as follows: A. The Tustin Community Redevelopment Agency ( "Agency ") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ( "CRL ") and has been 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. The City of Tustin is a municipal corporation of the State of California ( "City'); and C. Assembly Bill X1 26 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 D. On December 29, 2011, in the case entitled California Redevelopment Association, et al v. Ana Matosantos, et al ( "Matosantos Decision "), the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California were dissolved as of February 1, 2012 under the dates in the Dissolution Act that were reformed and extended thereby ( "Supreme Court Decision "); and E. The Agency is now a dissolved community redevelopment agency pursuant to the Dissolution Act; and F. On June 12, 1996, the Tustin City Council and Tustin Community Redevelopment Agency approved a $2,400,000 Working Capital Loan and Administrative Services Agreement ( "Working Capital Loan ") to the South Central Project Area for the purposes of permitting the Agency to complete the goals and objectives of the South Central Project Area; and G. The Working Capital Loan carried over and increased as needed from year -to- year until the final issuance of $4,650,000 on September 7, 2010; and Resolution No. 15 -03 H. In accordance with the Dissolution Act , the Successor Agency submitted the Working Capital Loan on the Recognized Obligation Payment Schedule for approval by the State of California Department of Finance ( "DoF "); and DoF denied the Working Capital Loan, stating that it is not an enforceable obligation and indicated the Successor Agency could seek to reinstate the Working Capital Loan upon receiving a Finding of Completion ( "Finding "); and J. On May 10, 2013, the Successor Agency remitted what it believes to be its last remaining unencumbered funds to the Orange County Auditor - Controller and on May 13, 2013, requested a Finding from DoF; and K. On July 3, 2013, DoF informed the Successor Agency that a Finding would not be issued until after the Successor Agency remitted the principal and interest due on December 1, 2013 for the December 31, 2008 Promissory Note between the City and Successor Agency; and L. In response, the City, the Successor Agency and the Tustin Housing Authority have filed a "Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief' with the Superior Court in Sacramento County; and M. On April 24, 2014, the Superior Court, County of Sacramento issued its ruling in the Petition Case No. 34- 2013 - 80001623 under which a Writ mandated DoF issue the Successor Agency its Finding of Completion, nunc pro tunc as of May 15, 2013; and N. On May 1, 2014, pursuant to the Writ issued by the Court, DoF issued the Finding of Completion, effective May 15, 2013; and O. On June 19, 2014, the City, the Successor Agency and the Tustin Housing Authority filed a notice of appeal in response to other findings in the Petition; and P. On July 8, 2014, DoF filed a notice of cross - appeal to challenge the judgment that DoF had abused its discretion in refusing to issue a Finding until the amount due under the Promissory Note had been remitted; and Q. On December 9, 2014, the City and DoF executed a Promissory Note Settlement Agreement outlining the City's payoff schedule for the Note and DoF's promise to abandon or dismiss the cross - appeal; and R. On December 12, 2014, DoF filed an abandonment of the cross - appeal and on December 15, 2014 the abandonment became official; and S. The City has determined it is necessary and appropriate to amend and reinstate the Working Capital Loan entered into by and between the City of Tustin and the Resolution No. 15 -03 Page 2 of 4 former Tustin Community Redevelopment Agency as an enforceable obligation; and T. In accordance with the Dissolution Act, the amended and reinstated Working Capital Loan will also require the Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency to deem it an enforceable obligation and State of California Department of Finance approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN: Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. The City Council approves amending and reinstating the Working Capital Loan and Administrative Services Agreement between the City of Tustin and the Successor Agency to the Tustin Community Redevelopment Agency. Section 3. The City Council authorizes the Mayor to execute the First Amendment to the Working Capital Loan and Administrative Services Agreement, in substantially the form attached to Resolution 15 -03. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 20th day of January, 2015. ATTEST: JEFFREY C. PARKER, City Clerk CHARLES E PUCKETT, Mayor Resolution No. 15 -03 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Jeffrey C. Parker, City Clerk and ex- officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 15 -03 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 20th day of January, 2015, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: JEFFREY C. PARKER, City Clerk Attachment: First Amendment to the Working Capital Loan and Administrative Services Agreement — "Working Capital Loan" Resolution No. 15 -03 Page 4 of 4 ATTACHMENT FIRST AMENDMENT TO THE WORKING CAPITAL LOAN AND ADMINISTRATIVE SERVICES AGREEMENT "WORKING CAPITAL LOAN" (SEE ATTACHMENT NO. 3)