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Home My WebLink About1.17.17CITY OF TUSTIN SPECIAL MEETING OF THE SUCCESSOR AGENCY January 17, 2017 COUNCIL CHAMBER 300 CENTENNIAL WAY, TUSTIN Al Murray, Chair Pro Tem Jeffrey C. Parker, City Manager Charles E. Puckett, Agency Member Dr. Allan Bernstein, Chair David E. Kendig, City Attorney Letitia Clark, Agency Member Erica N. Rabe, City Clerk Steve Kozak, Agency Member Jeffrey C. Parker, City Treasurer SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY 5:15 P.M. CALL TO ORDER ATTENDANCE PUBLIC INPUT CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The Successor Agency finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: REGULAR BUSINESS ITEM 1 1. SUCCESSOR AGENCY APPROVAL OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR PERIOD OF JULY 1, 2017 THROUGH JUNE 30, 2018 Pursuant to AB 1X 26 and Senate Bill ("SB") 107, the City of Tustin, acting as the Please note: Written materials relating to agenda items for an open session regular meeting of the Agency that are distributed to a majority of the Agency members less than 72 hours prior to the meeting are available for public inspection at the following locations: In the City Clerk's Office during regular business hours and following business hours (after 5:30 p.m.) in the Council Chamber on the day of the meeting. Successor Agency to the Tustin Community Redevelopment Agency (Successor Agency), is seeking approval of the Recognized Obligation Payment Schedule 17-18 ("ROPS 17-18") for the period of July 1, 2017 through June 30, 2018. Recommendation: That the City Council, acting as the Successor Agency, approve ROPS 17-18 for the period of July 1, 2017 through June 30, 2018, and authorize submission of the ROPS 17-18 to the Department of Finance ("DoF") by February 1, 2017, subject to the following conditions: 1. Review and approval by the Oversight Board; and 2. Should any subsequent modifications be required to ROPS 17-18 by the Successor Agency, independent auditor, or the DoF, the Successor Agency's Executive Director 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: Pursuant to California Health and Safety Code (HSC) Section 34177(m), the above actions by the City's Successor Agency shall not become effective for forty-five (45) business days after approval by the Oversight Board pending a review by the DoF. Within five business days of the DoF's determination, the Successor Agency can request additional review by the DoF and an opportunity to meet and confer on disputed items.) CONSENT CALENDAR ITEMS 2-3 2. SUCCESSOR AGENCY APPROVAL OF AN AMENDED ADMINISTRATIVE BUDGET AND AUTHORIZATION TO ENTER INTO AN ELEVENTH AMENDED AGREEMENT BETWEEN THE CITY AND SUCCESSOR AGENCY FOR ADMINISTRATIVE SUPPORT Recommendation: That the City, acting as the Successor Agency to the Tustin Community Redevelopment Agency ("Successor Agency"), take the following actions: A. Approve the attached amended Administrative Budget pursuant to California Health and Safety Code (HSC) Section 341770). Should any subsequent modifications be determined necessary, the City Manager and/or Finance Director, or their authorized designee, shall be authorized to make augmentation, modification, additions, or revisions as may be necessary subject to Oversight Board approval. B. Approve and authorize the Successor Agency to enter nto an Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan with the City for reimbursement of costs incurred by the City to support Successor Agency operations, obligations consistent with the Administrative Budget approved by the Successor Agency. The Successor Agency shall also be authorized to enter into any agreements necessary Successor Agency January 17, 2017 Special Meeting Agenda Page 2 of 3 to provide administrative support services as identified in the Administrative Budget attached hereto. 3. APPROVAL OF MINUTES — SPECIAL MEETING OF THE SUCCESSOR AGENCY HELD ON FEBRUARY 16, JUNE 7, JULY 5 AND AUGUST 2, 2016 Recommendation: That the Successor Agency approve the Action Minutes of the Special Meeting of the Successor Agency held on February 16, June 7, July 5 and August 2, 2016. ADJOURNMENT Successor Agency January 17, 2017 Special Meeting Agenda Page 3 of 3 Agenda Item SA 7 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: JANUARY 17, 2017 TO: JEFFREY C. PARKER, CITY MANAGER FROM: SUCCESSOR AGENCY AND FINANCE DEPARTMENT SUBJECT: SUCCESSOR AGENCY APPROVAL OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR PERIOD OF JULY 1, 2017 THROUGH JUNE 30, 2018 SUMMARY: Pursuant to AB 1X 26 and Senate Bill ("SB") 107, the City of Tustin, acting as the Successor Agency to the Tustin Community Redevelopment Agency (Successor Agency), is seeking approval of the Recognized Obligation Payment Schedule 17-18 ("ROPS 17-18") for the period of July 1, 2017 through June 30, 2018. RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency, approve BOPS 17-18 for the period of July 1, 2017 through June 30, 2018, and authorize submission of the ROPS 17-18 to the Department of Finance ("DoF") by February 1, 2017, subject to the following conditions: 1. Review and approval by the Oversight Board; and 2. Should any subsequent modifications be required to ROPS 17-18 by the Successor Agency, independent auditor, or the DoF, the Successor Agency's Executive Director 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: Pursuant to California Health and Safety Code (HSC) Section 34177(m), the above actions by the City's Successor Agency shall not become effective for forty- five (45) business days after approval by the Oversight Board pending a review by the DoF. Within five business days of the DoF's determination, the Successor Agency can request additional review by the DoF and an opportunity to meet and confer on disputed items.) Agenda Report January17, 2017 Page 2 COORELATION TO STRATEGIC PLAN: ROPS 17-18 has been prepared to be consistent with the City's value of Fiscal Stewardship, exercising fiscal discipline to live within the means and practicing sound stewardship of the public's assets. BACKGROUND: Assembly Bill 1X 26, the "Dissolution Act", as modified by the California Supreme Court's decision in Califomia Redevelopment Association, et al. v. Matosantos ("Matosantos"), required the Successor Agency to prepare a Recognized Obligation Payment Schedule (ROPS) every six months. With the September 2015 passage of SB 107, HSC Section 34177 was amended to add 34177(o), revising the number of ROPS required during a fiscal year from two (2) six-month schedules to one (1) twelve month schedule. HSC Section 34177(o)(1)(E), does allow the Successor Agency to amend the ROPS once during the one-year period, as long as it occurs before October 1St These requirements became effective on January 1, 2016. As a result, the Successor Agency has prepared ROPS 17-18 for the period of July 1, 2017 through June 30, 2018, and, upon Successor Agency approval, will submit it to the Oversight Board for approval. ROPS 17-18 lists all enforceable obligations that are legally binding and enforceable agreements or contracts of the former Tustin Community Redevelopment Agency including those necessary for the continued administration of the Successor Agency to wind down the former Agency. Pursuant to HSC Section 34177(1)(2)(6)), the Successor Agency is required to submit a copy of the ROPS to the County Administrative Officer, the County Auditor -Controller, and the DoF at the same time that the Successor Agency submits the ROPS to the Oversight Board for approval. ROPS 17-18 will be submitted to the Oversight Board at their regular meeting on January 24, 2017. Upon approval by the Oversight Board, a copy will be submitted to the County Auditor -Controller, the State Controller's Office and the DoF and posted on the Successor Agency's website. ROPS 17-18 includes a report of Cash Balances, which includes the expenditures for ROPS 15-16B during the period of January 1, 2016 through June 30, 2016. Authorization is requested to allow the Successor Agency's Executive Director and/or Finance Director to augment, modify, add or revise the document as may be needed prior to submitting to the Oversight Board. In addition, authorization is requested, in response to Oversight Board, DoF, or County Auditor -Controller comments, to allow the Successor Agency's Executive Director and/or Finance Director to augment, modify, add or revise the document as may be needed. Agenda Report January 17, 2017 Page 3 Staff will be available to answer any questions the Successor Agency may have. Jerry Craig Sean Tran Economic D Selo en ousing Manager Acting Finance Director Success, Age y to tfie Tustin Successor Agency to the Tustin Cope ni F-edevelopment Agency Community Redevelopment Agency Attachment: ROPS 17-18 (July 1, 2017 through June 30, 2018) Successor Agency County: Tustin Orange Recognized Obligation Payment Schedule (ROPS 17-18) - Summary Filed for the July 1, 2017 through June 30, 2018 Period Current Period Reauested Fundina for Enforceable Obliaations (ROPS Detai A Enforceable Obligations Funded as Follows (B+C+D): B Bond Proceeds C Reserve Balance D Other Funds E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): F RPTTF G Administrative RPTTF H Current Period Enforceable Obligations (A+E): Certification of Oversight Board Chairman: Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Name Payment Schedule for the above named successor agency. /s/ Signature 17-18A Total 17-18B Total Julv - December) (January - June) ROPS 17-18 Total $ 3,232,863 $ 1,187,813 $ 4,420,676 3,232,863 1,187, 813 4,420,676 $ 3,232,863 $ 1,187,813 $ 4,420,676 Title Date Tustin Recognized Obligation Payment Schedule (ROPS 17-18) - ROPS Detail July 1, 2017 through June 30, 2018 (Report Amounts in Whole Dollars A B c D E F G H I J K L M N O P Q R S T U 11 W 17-18A Jul -December 17-18B(January -June Fund Sources Fund Sources Contract/Agreement Contract/Agreement Total Outstanding ROPS 17-18 17-1 SA 17-18B Item # Project Name/Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project Scope Project Area Debt or Obligation Retired Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total $ 83,729,215 $ 4,420,676 $ - $ - $ 3,232,863 $ - $ - $ 3,232,863 $ - $ - $ 1,187,813 $ - $ - $ 1,187,813 1 Housin Tax Allocon Bonds Bonds Issued On or Before 3/12010 9/12039 Bondholders via The Bank Proceeds from the sale ofthe Bonds N $ $ $ 2 Fiscal Agent Feesati- TA Bond 2010 Fees 1/19/2010 9/1/2039 The Bank of —York administration of bond activities [paid N $ - $ - $ Mellon nuall 3 Continuing disclosure services & Fees 1/19/2010 9/12039 AppliedBest Practices; Continuing disclosure services for N $ - $ - $ arbitrage services Wildan & Associates 2010 Housing bonds and arbitrage 8 PERS liability(annually adjusted) Unfunded Liabilities 7/12014 6/30/2015 City of Tustin Employees funded by the Successor N $ - $ - $ Agency that perform Successor Agency activities. The liability is revi—ed annuallyand may increase or decrease based on a variety of and actuarial assum io 35 Public VVorks Agreement/South City/County Loans On or 6!7/1993 6/30/2030 City of Tustin Original Loan amount to the Agency in N Central Redevelopment Project Before 627/11 1993 was initially estimated to be $33,500,000 for the Newport Avenue Extension (Newport Underpass) to Edinger Avenue. The interest rate is .5h above the City's average yield on investments. Repayment ofthe loan based on City -funded Phase 1 work (Capital Improvement Program - CIP 70130) that has been completed on the Newport Avenue Extension/SR-55 North Bound Ramp Reconfiguration Project. The Phase 1 project began in 1993 and was completed in March 2010. Phase 1 (CIP 70130) contracts e not listed on previous EOPS or ROPS. There is no duplication of obligations. Phase 2 work (CIP 70 131) consists of contracts listed below in Rows #42447 and these contracts have not been double oumed in Phase 1. Pursuant to Section 1 Public Improvement Work of the Public Works Agreement, the Successor Agency shall pay the City when projects are completed and in -i -annual installments (per Section 2 Payment by the Agency of the Agreement). Th is installment will reflect initial reimbursement payments until confirmation of the Oversight Board ofthe actual increased costs of 48 Tax Allocation Bonds- MCAS Bonds Issued On or Before 11/12010 9/12040 Bondholders via The Ban Bond issue to fund non -housing N $ - $ - $ Tustin, Series 2010 12/31/10 of New York Mellon projects. Total outstanding debt includes princ pal and interest. 49 Fiscal Agent Fees - TA Bond 2010 Fees 9!72010 9/12040 The Bank of New York administration of bond activities N $ - $ - $ Mellon 50 Continuing disclosure services & Fees 9!72010 9/12040 Applied Best Practices; Continuing disclosure services for N $ - $ - $ arbitrage services Wildan & Associates 2010 MCAS bonds & arbitrage services 6810th Amended Agmt for Admin Costs 828/2012 6/30/2017 Employees funded by the Administrative Budget for employees, Al 250,000 N $ 250,000 125,000 $ 125,000 125,000 $ 125,000 Reimbursement of Costs and Successor Agency that overhead & legal services needed for City/Admin Agency Operations perform Successor Agency direct administrative operation. The pursuant Loan between the SA/City activites as needed for Oversight Board ofthe Successor to California HSC Section 34177 0) direct administrative Agency to the Tustin Community operations aswell as Redevelopment Agency approved the overhead and legal administrative budget on March 13, services. 2012 and the Successor Agency adopted Successor Agency Resolution No. 12-04 on March 20, 2012 approving the Administrative Budget and approved the "Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan'. This amount will fluctuate annually. The Adminstrative Budget was calculated in accordance with California Health and Safety Code Section 34171(6), 3% ofthe property taxallocated to the Successor Agency for FY 2011-2012. Tustin Recognized Obligation Payment Schedule (ROPS 17-18) - ROPS Detail July 1, 2017 through June 30, 2018 (Report Amounts in Whole Dollars A B c D E F G H I J K L M N O P Q R S T U 11 W 17-18A Jul -December 17-18B(January -June Fund Sources Fund Sources Contract/Agreement Contract/Agreement Total Outstanding ROPS 17-18 17-1 SA 17-18B Item # Project Name/Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project Scope Project Area Debt or Obligation Retired Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total 71 Affordable Housing Reimbursement Gity/county Loans On or 6/52007 6/30/2030 City of Tustin Initial Agreement between the City an N Agreement and First Amendment Before 627/11 Agencyfor the purpose of reimbursing Between City and Agency the City for assisting the Agency in carrying out its affordable housing obligations at Tustin Field I & II. 72 South Central Project Area Loan City/County Loans On or 922008 6/30/2030 City of Tustin Project purposes loan. Amount is N Before 627/11 derived from Appendix D ofthe fourth Five -Year Implementation Plan ofthe South Centralfrown Center Project Areas as adopted on October 5, 2010. Continuation of Loan to Agency on Administrative Agreement adopted by Council on September 7, 2010. The amount was originally loaned to the Agency on September 2, 2008. Prior loans to the Agency were for differing amounts as needed by project area. 73 Housing Tax Allocation Bonds, Legal 7/12014 6/30/2015 City Attorney - Woodruff, p oject-specific legal services for bond N Series 2010 - Legal Services Spradlin & Smart (including related activities identified in Row #1 Stradling Yocca Carlson & Rauth; Remy, Thomas, Moose & Manley; Waters & Company; Jeanette Justus; Afbruster Goldsmith & Delvac LLP; Cappello & Noel LLP; and Kutak Rock) 82 Tax Allocation Bonds- MCAS Legal City Attorney - Woodruff, project -specific legal services for bond N $ - $ - $ Tustin, Series2010- Le al Service S radlin &Smart, et al. related activities identified in Row# 48 90 Housing Entity Administrative Cost Housing Entity Admin Cost 8 Tustin Housing Authority Pursuamto AB 471, filed Feb 18, Allowance *7/l/20146/30/2015 2014, housing administrative cost allowance for the Tustin Housing Authority which assumed the housing duties of the former Tustin Community Redevelo ment 96 Successor Agency to the Tustin Bonds Issued After 1231/109/12016 9/12040 Bondholders via The Bank Refunding for Housng Tax Allocation Al 83,309,215 N $ 4,155,876 3,100,563 $ 3,100,563 1,055,313 $ 1,055,313 Community Redevelopment of New York Mellon Bonds, Series 2010 and Tax Agency, Tax Allocation Refunding Allocation Bonds- MCAS Tustin, Bonds, Series 2016 Series 2010. Proceeds ofthe Bonds will be applied to refund the Former Agency Obligations, to purchase a rve fund municipal bond ce policy in lieu of cash fund,n reserve fund for the Bonds and Ovide for the cost of issuing the 97 Fiscal Agent Fees - TA Refunding Fees 9/12016 9/12040 The Bank of New York administration of bond activities [paid Al 70,000 N $ 3,000 1,50 $ 1,500 1,500 $ 1,500 Bonds 2016 Mellonannuall 98 Continuing disclosure services& Fees 9/12016 9/12040 Applied Best Practices; Continuing disclosure services for All 100,000 N $ 11,800 5,800 $ 5,800 6,000 $ 6,000 arbitrage services Wildan & Associates 2016 TA refunding bonds and arbitrage 99 N $ $ $ 100 N $ $ $ 101 N $ $ $ 102 N $ $ $ 103 N $ $ $ 104 N $ $ $ 105 N $ $ $ 106 N $ $ $ 107 N $ $ $ 108 N $ $ $ 109 N $ $ $ 110 N $ $ $ 111 N $ $ $ 112 N $ $ $ 113 N $ $ $ 114 N $ $ $ 115 N $ $ $ 116 N $ $ $ 117 N $ $ $ 118 N $ $ $ 119 N $ $ $ 120 N $ $ $ 121 N $ $ $ 122 N $ $ $ 123 N $ $ $ 124 N $ $ $ Tustin Recognized Obligation Payment Schedule (ROPS 17-18) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safetv Code section 34177 (I). Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of oavment on the ROPS. but onlv to the extent no other fundine source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet. A B C D E I F G H I Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS Prior ROPS period balances RPTTF Bonds issued Bonds issued and DDR RPTTF distributed as Rent, Non -Admin on or before on or after balances reserve for future grants, and Cash Balance Information by ROPS Period 12/31/10 01/01/11 retained period(s) interest, etc. Admin Comments ROPS 15-16B Actuals (01/01/16 - 06/30/16) 1 Beginning Available Cash Balance (Actual 01/01/16) 4,132, 761 537,078 2 Revenue/Income (Actual 06/30/16) RPTTF amounts should tie to the ROPS 15-16B distribution from the County Auditor -Controller during January 2016 69,618 893,703 RPTTF distribution received 3 Expenditures for ROPS 15-16B Enforceable Obligations (Actual 06/30/16) RPTTF authorized obligations & ROPS 14-15B 1,495,757 976,042 prior period Adjustment 4 Retention of Available Cash Balance (Actual 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 15-16B RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance C to G = (1 + 2 - 3 - 4), H=(1+2-3-4-5) $ - $ - $ - $ - $ 2,706,622 $ 454,739 Agenda Item SA 2 Reviewed.- AGENDA eviewed.AGENDA REPORT City Manager Finance Director MEETING DATE: JANUARY 17, 2017 TO: JEFFREY C. PARKER, CITY MANAGER FROM: SUCCESSOR AGENCY AND FINANCE DEPARTMENT SUBJECT: SUCCESSOR AGENCY APPROVAL OF AN AMENDED ADMINISTRATIVE BUDGET AND AUTHORIZATION TO ENTER INTO AN ELEVENTH AMENDED AGREEMENT BETWEEN THE CITY AND SUCCESSOR AGENCY FOR ADMINISTRATIVE SUPPORT SUMMARY: Successor Agency approval is requested of an amended Administrative Budget and authorization for the City and Successor Agency to enter into an Eleventh Amended Agreement for reimbursement of administrative support. RECOMMENDATION: 1. It is recommended the City, acting as the Successor Agency to the Tustin Community Redevelopment Agency ("Successor Agency"), take the following actions: A. Approve the attached amended Administrative Budget pursuant to California Health and Safety Code (HSC) Section 341770). Should any subsequent modifications be determined necessary, the City Manager and/or Finance Director, or their authorized designee, shall be authorized to make augmentation, modification, additions, or revisions as may be necessary subject to Oversight Board approval. B. Approve and authorize the Successor Agency to enter into an Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan with the City for reimbursement of costs incurred by the City to support Successor Agency operations, obligations consistent with the Administrative Budget approved by the Successor Agency. The Successor Agency shall also be authorized to enter into any agreements necessary to provide administrative support services as identified in the Administrative Budget attached hereto. Agenda Report January 17, 2017 Page 2 COORELATION TO STRATEGIC PLAN: The Administrative Budget and Eleventh Amended Agreement for Reimbursement of Costs are consistent with City's value of Fiscal Stewardship. While adhering to the fiscal limitations placed on the Successor Agency by the dissolution of Redevelopment, they exercise the fiscal discipline necessary to live within our means and to ensure future financial sustainability. BACKGROUND: Pursuant to the passage of Senate Bill ("SB") 107, HSC Section 34177 was amended to add 34177(o), revising the number of Recognized Obligation Payment Schedules ("ROPS") required during a fiscal year from two (2) six-month schedules to one (1) twelve month schedule. In preparing ROPS 17-18, HSC Section 341770) requires the Successor Agency develop a proposed administrative budget and submit it to the Oversight Board for approval. The Successor Agency has prepared a twelve month amended administrative budget. The administrative budget includes all of the following: (i) estimated amounts of the Successor Agency's administrative costs for the up -coming 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 2017-2018 is payable from property tax revenues of up to three percent (3%) of property tax allocated to the Redevelopment Obligation Retirement Fund during FY 2017-18. In any 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 Successor Agency Administrative Budget for the period of July 2017 through June 2018 reflects the projected administrative costs in ROPS 17-18. 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 the fiscal period. Since the ROPS may change in the future, authorization for the City Manager or Finance Director to make any future modifications necessary to the Administrative Budget is requested, subject to Oversight Board approval. In conjunction with the past approvals of the Administrative Budget for FY 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, and 2017-18, including each six month ROPS time frame, the City and Successor Agency entered into an Agreement for Agenda Report January 17, 2017 Page 3 reimbursement of costs incurred by the City to support Successor Agency operations and obligations (original agreement entered into March 20, 2012, First Amendment on April 17, 2012; Second Amendment on June 19, 2012; Third Amendment on August 14, 2012; Fourth Amendment on February 19, 2013; Fifth Amendment on September 24, 2013; Sixth Amendment on February 25, 2014; Seventh Amendment on September 30, 2014; Eight Amendment on February 24, 2015; Ninth Amendment on September 22, 2015; and Tenth Amendment on January 26, 2016). 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 proposed Administrative Budget reflects a $250,000 administrative cost distribution for the period of July 2017 to June 2018. A copy of the amended agreement is attached for Successor Agency approval. Staff are available to answer any questions the Successor Agency may have. Jerry Craig Economic D elo er�L ousing Manager Succe�so'r e cy to the Tustin Community Redevelopment Agency Sean Tran ` Acting Finance Director Successor Agency to the Tustin Community Redevelopment Agency Attachments: 1. Proposed Administrative Budget for July 1, 2017 through June 30, 2018. 2. Proposed City and Successor Agency Eleventh Amended Agreement for Reimbursement of Costs for Fiscal Year 2017-2018. ESTIMATED REVENUES Object Code Position Percent to Admin Total FY - Admin Costs JULY 2017 THRU JUNE 2018 1 Enforceable Obligations Paid with Redevelopment Property Tax Trust Fund Bank Service Charges Telephone Office Supplies Mail and Postage Service Printing Meetings (staff) Training Expense Membership/Subscriptions Vehicle Mileage Vehicle Lease Equipment IT Support Services Sub -Total Admin Cost Allowances: $ 4,420,676 4,420,676 4 Estimated Property Tax allocated to Successory Agency Administrative Cost Allowance for FY 16/17 3,700 4,420,676 3% $ 250,000 250,000 0 0 ESTIMATED EXPENSES 200 6,800 36,500 EMPLOYEE DETAILS CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED) Object Code Position Fiscal Year - Total Wages, Benefits and Wnrkprs Cmmn Percent to Admin Total FY - Admin Costs JULY 2017 THRU JUNE 2018 Sub -Total Wages, Benefits and WC: $ $ $ OTHER ADMINISTRATIVE DIRECT COSTS Object Code Item Total During Fiscal Year 2017/18 Percent to Admin Total FY -Admin Costs JULY 2017 THRU JUNE 2018 1 6147 2 6355 3 6400 4 6415 5 6420 6 6710 7 6715 8 6730 9 6840 10 6845 11 6848 Bank Service Charges Telephone Office Supplies Mail and Postage Service Printing Meetings (staff) Training Expense Membership/Subscriptions Vehicle Mileage Vehicle Lease Equipment IT Support Services Sub -Total Admin Cost Allowances: 3,000 3,700 5,200 1,600 9,000 0 0 0 200 6,800 36,500 $ 66,000 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 3,000 3,700 5,200 1,600 9,000 0 0 0 200 6,800 36,500 $ 66,000 3,000 3,700 5,200 1,600 9,000 0 0 0 200 6,800 36,500 $ 66,000 CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED) Object Code Item Total During Fiscal Year 2017/18 Total FY -Admin Costs JULY 2017 THRU JUNE 2018 1 City Administrative Support Costs based on Cost Allocation 418,000 14.6% 60,950 $ 60,950 CITY ATTORNEY (contract services) Object Code Description of Services Total During Fiscal Year 2017/18 Percent to Admin Total FY - Admin Costs JULY 2017 THRU JUNE 2018 6017 City Attorney's Office - Woodruff, Spradlin & Smart (Including: Stradling Yocca Carlson & Rauth; Richards, Watson & Gershon; Remy, Thomas, Moose & Manley; Waters & Company; and 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: $ 100,000 $ 100,000 100% $ 100,000 $ 100,000 $ 100,000 $ 100,000 SPECIFIC SERVICES Object Code Description Total During Fiscal Year 2017/18 Percent to Admin Total FY -Admin Costs JULY 2017 THRU JUNE 2018 1 6315 Lease of Office Space Sub -Total Specific Services: 23,050 $ 23,050 100% $ 23,050 23,050 $ 23,050 $ 23,050 TOTAL ADMINISTRATIVE SERVICE COSTS Percent to Admin Total FY - Admin Costs JULY 2017 THRU JUNE 2018 TOTAL ADMINISTRATIVE SERVICE COSTS $ 250,000 $ 250,000 BUDGET - REVENUES (SURPLUS)/EXPENSES (DEFICIT) 0 $ - ELEVENTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN This ELEVENTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Eleventh Amended Agreement") is made and entered into as of January 24, 2017, by and among the CITY OF TUSTIN, a California municipal corporation ("City"), and the CITY OF TUSTIN ACTING AS SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY ("City Successor Agency"). RECITALS 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 1X 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"). D. On December 29, 2011, California Redevelopment Association, et al. 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 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 selected the Tustin Housing Authority to assume such housing assets and functions, and on such date, also pursuant to Section 34176, the Tustin Housing Authority accepted and assumed the housing 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 1 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. L 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, the Second Amended Agreement on June 19, 2012, the Third Amended Agreement on August 14, 2012, the Fourth Amended Agreement on February 19, 2013, the Fifth Amended Agreement on September 24, 2013, the Sixth Amended Agreement on February 25, 2014, the Seventh Amended Agreement on September 30, 2014, the Eighth Amended Agreement on February 24, 2015, the Ninth Amended Agreement on September 22, 2015, and the Tenth Amended Agreement on January 26, 2016 (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. Page 2 N. The City Successor Agency will seek Oversight Board authorization on January 24, 2017, to enter into an Amended Agreement for Reimbursement of Costs with the City to reflect modifications to the Administrative Budget. 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 2 of the Original Agreement as it relates to the Cost of Administrative Expenses and Administrative Cost Allowances for Fiscal Year 2017-18. (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 the City to the City Successor Agency for the period of July 1, 2017 through June 30, 2018, is Two Hundred Fifty Thousand Dollars ($250,000). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the sum of $250,000 to City to pay for the estimated administrative expenses of the City Successor Agency for the period of fiscal year 2017-18, subject to Oversight Board approval and City Successor Agency preparation and approval of an administrative budget estimate for such services and costs for the fiscal period of July 1, 2017 through June 30, 2018. 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." 2. Miscellaneous. (a) ELEVENTH 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 ELEVENTH Amended Agreement and the Original Agreement shall be binding upon and inure to the benefit of the parties hereto. «««««««««««««< Signature Page Follows»»»»»»»»»»»»»> Page 3 IN WITNESS WHEREOF, the parties have caused this ELEVENTH 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 Dr. Allan Bernstein, Mayor ATTEST: Erica N. Rabe, City Clerk APPROVED AS TO FORM David Kendig, City Attorney "CITY SUCCESSOR AGENCY" SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Dr. Allan Bernstein Successor Agency Chairman ATTEST: Erica N. Rabe, City Clerk on behalf of the Successor Agency APPROVED AS TO FORM David Kendig, Legal Counsel Page 4 Agenda Item 3 Reviewed: City Manager ENR Finance Director N/A CITY OF TUSTIN SPECIAL MEETING FEBRUARY 16, 2016 OF THE SUCCESSOR AGENCY COUNCIL CHAMBER • 300 CENTENNIAL WAY, TUSTIN i .�J Dr. Allan Bernstein, Chair Pro Tem Jeffrey C. Parker, City Manager Al Murray, Agency Member John Nielsen, Chair David E. Kendig, City Attorney Charles E. Puckett, Agency Member Erica N. Rabe, City Clerk Austin Lumbard, Agency Member Jeffrey C. Parker, City Treasurer MINUTES OF THE SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY 5:20 P.M. CALL TO ORDER — 5:23 p.m. ATTENDANCE - Chair Nielsen announced that all members were present with the exception of Agency Member Murray PUBLIC INPUT — None REGULAR BUSINESS ITEMS 1 - 2 1. QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. It was moved by Agency Member Puckett and seconded by Chair Pro Tem Successor Agency February 16, 2016 Special Meeting Minutes Page 1 of 2 Bernstein to receive and file. Motion carried: 4-0 2. APPROVAL OF MINUTES — SPECIAL MEETING OF THE SUCCESSOR AGENCY HELD ON JANUARY 19, 2016 It was moved by Agency Member Lumbard and seconded by Agency member Puckett to approve the Action Minutes of the Special Meeting of the Successor Agency held on January 19, 2016. Motion carried: 4-0 ADJOURNED at 5:24 p.m. Successor Agency February 16, 2016 Special Meeting Minutes Page 2 of 2 Agenda Item 3 Reviewed: City Manager ENR Finance Director N/A CITY OF TUSTIN SPECIAL MEETING JUNE 7, 2016 OF THE SUCCESSOR AGENCY COUNCIL CHAMBER 300 CENTENNIAL WAY, TUSTIN ST'r��W Dr. Allan Bernstein, Chair Pro Tem Jeffrey C. Parker, City Manager Al Murray, Agency Member John Nielsen, Chair David E. Kendig, City Attorney Charles E. Puckett, Agency Member Erica N. Rabe, City Clerk Austin Lumbard, Agency Member Jeffrey C. Parker, City Treasurer MINUTES OF THE SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY CALL TO ORDER — 5:30 p.m. ATTENDANCE - Chair Nielsen announced that all members were present PUBLIC INPUT - None CITY ATTORNEY DAVID E. KENDIG — Stated that the Closed Session Item was pulled from the agenda. CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The Successor Agency finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION [Government Code § 54956.9(a)] — One Case A. Successor Agency to the Tustin Redevelopment Agency, et al. v. Michael Cohen: Sacramento Superior Court Case No. 34-2015-80002046 CU-WM- GDS Successor Agency June 7, 2016 Special Meeting Minutes Page 1 of 3 CONSENT CALENDAR ITEMS 1-3 — It was moved by Agency Member Puckett and seconded by Agency Member Murray to pull Item No. 1 and approve the balance as recommended by staff. Motion carried: 5-0 1. APPROVAL OF ISSUANCE OF BONDS TO REFUND CERTAIN OUTSTANDING OBLIGATIONS OF THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY, APPROVING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND ESCROW AGREEMENTS AND PROVIDING FOR OTHER MATTERS RELATING THERETO In March, 2010, the Tustin Community Redevelopment Agency issued $26,170,000 Tustin Community Redevelopment Agency Tax Allocation Bonds, Series 2010 (the "2010 Housing Bonds") to refinance low and moderate income housing activities within the City, of which $21,225,000 principal amount remains outstanding, and in November 2010, it issued $44,170,000 Tustin Community Redevelopment Agency Tax Allocation Bonds (MCAS - Tustin Redevelopment Project Area), Series 2010 (the "2010 Redevelopment Bonds") to finance redevelopment activities within and for the benefit of the MCAS - Tustin Redevelopment Project, of which $40,160,000 principal amount remains outstanding. The 2010 Housing Bonds are callable on any date on and after September 1, 2020 at par, while the 2010 Redevelopment Bonds are callable on any date on and after September 1, 2018 at 102% of par. Section 34177.5 of the California Health and Safety Code authorizes the Successor Agency to issue refunding bonds for the purpose of achieving debt service savings. Due to favorable market conditions, the Successor Agency is contemplating the issuance of bonds to refund the 2010 Housing Bonds and the 2010 Redevelopment Bonds on an advance basis. Based on current market conditions, it is anticipated that such refunding would generate approximately $507,000 of average annual debt service savings beginning in 2017. Any debt service savings as a result of the refunding will increase the amount of property tax revenues that can be distributed to all the taxing entities, including the City. It was moved by Agency Member Murray and seconded by Chair Pro Tem Bersntein to adopt Resolution No. 16-01, a Resolution of the Successor Agency to the Tustin Community Redevelopment Agency approving the issuance of refunding bonds in order to refund certain outstanding obligations of the former Tustin Community Redevelopment Agency, approving the execution and delivery of an Indenture of Trust and Escrow Agreements relating thereto, requesting Oversight Board approval of the issuance of the refunding bonds, requesting certain determinations by the Oversight Board, and providing for other matters relating thereto. Successor Agency June 7, 2016 Special Meeting Minutes Page 2 of 3 Motion carried: 5-0 SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY RESOLUTION NO. 16-01 RESOLUTION OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF REFUNDING BONDS IN ORDER TO REFUND CERTAIN OUTSTANDING OBLIGATIONS OF THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY, APPROVING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND ESCROW AGREEMENTS RELATING THERETO, REQUESTING OVERSIGHT BOARD APPROVAL OF THE ISSUANCE OF THE REFUNDING BONDS, REQUESTING CERTAIN DETERMINATIONS BY THE OVERSIGHT BOARD, AND PROVIDING FOR OTHER MATTERS RELATING THERETO 2. QUARTERLY INVESTMENT REPORT FOR THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY Government Code Section 53646 requires that the Treasurer make an Investment Report to the Succesor Agency at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. Motion: Receive and file. 3. CONVEYANCE OF SUCCESSOR AGENCY PROPERTIES BY QUITCLAIM DEED TO THE CITY OF TUSTIN Successor Agency to the Tustin Community Redevelopment Agency ("Successor Agency") approval is requested to convey title to two (2) properties by Quitclaim Deed to the City of Tustin. The properties are identified as follows: 1. 345 E. Main Street (APN: 401-592-19): Tustin Library 2. 200 S C Street (APN: 401-574-04): Tustin Senior Center Motion: That the City Council, acting as the Successor Agency, authorize the conveyance of title to two (2) properties by Quitclaim Deed to the City and authorize the Executive Director to execute the Deeds. ADJOURNED at 5:32 p.m. Successor Agency June 7, 2016 Special Meeting Minutes Page 3 of 3 Agenda Item 3 Reviewed: City Manager ENR Finance Director N/A CITY OF TUSTIN SPECIAL MEETING JULY 5, 2016 OF THE SUCCESSOR AGENCY COUNCIL CHAMBER 300 CENTENNIAL WAY, TUSTIN i Dr. Allan Bernstein, Chair Pro Tem Jeffrey C. Parker, City Manager Al Murray, Agency Member John Nielsen, Chair David E. Kendig, City Attorney Charles E. Puckett, Agency Member Erica N. Rabe, City Clerk Vacant, Agency Member Jeffrey C. Parker, City Treasurer MINUTES OF THE SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY 5:15 P.M. CALL TO ORDER — 5:18 p.m. ATTENDANCE - Chair Nielsen announced that all members were present PUBLIC INPUT - None CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The Successor Agency finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION [Government Code § 54956.9(a)] — One Case A. Successor Agency to the Tustin Redevelopment Agency, et al. v. Michael Cohen: Sacramento Superior Court Case No. 34-2015-80002046 CU-WM- GDS Successor Agency July 5, 2016 Special Meeting Minutes Page 1 of 2 CITY ATTORNEY DAVID E. KENDIG — Noted the resignation letter received from Agency Member Austin Lumabrd effective July 1, 2016. CONSENT CALENDAR ITEM 1 1. SUCCESSOR AGENCY RESOLUTION NO. 16-02 APPROPRIATING FUNDS FOR THE SUCCESSOR AGENCY FOR FISCAL YEAR 2016/2017 The City Council acting as the Successor Agency to the Tustin Community Redevelopment Agency is requested to approve the attached resolution adopting the budget for the Successor Agency for Fiscal Year 2016/2017. It was moved by Agency Member Puckett and seconded by Agency Member Murray to adopt Successor Agency Resolution No. 16-02, adopting the Successor Agency budget and appropriating $4,905,507 from the anticipated revenues of the Agency for fiscal year 2016/2017. Motion carried: 4-0 SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY RESOLUTION NO. 16-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY, ADOPTING THE BUDGET ANDAPPROPRIATING FROM THE ANTICIPATED REVENUES OF THE SUCCESSOR AGENCY FOR THE FISCAL YEAR 2016-2017 Recessed to Closed Session at 5:20 p.m Reconvened at 5:24 p.m. CITY ATTORNEY DAVID E. KENDIG — The Agency took no reportable action. ADJOURNED at 5:25 p.m. Successor Agency July 5, 2016 Special Meeting Minutes Page 2 of 2 Agenda Item 3 Reviewed: City Manager ENR Finance Director N/A CITY OF TUSTIN SPECIAL MEETING AUGUST 2, 2016 OF THE SUCCESSOR AGENCY COUNCIL CHAMBER 300 CENTENNIAL WAY, TUSTIN Dr. Allan Bernstein, Chair Pro Tem Jeffrey C. Parker, City Manager Al Murray, Agency Member John Nielsen, Chair David E. Kendig, City Attorney Charles E. Puckett, Agency Member Erica N. Rabe, City Clerk Vacant, Agency Member Jeffrey C. Parker, City Treasurer MINUTES OF THE SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY (Followed the Regular Meeting of the City Council) CALL TO ORDER at 9:10 p.m. ATTENDANCE — Chair Nielsen announced that all members were present PUBLIC INPUT — None REGULAR BUSINESS ITEM 1 1. ADOPT A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING THE FORM AND AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT IN CONNECTION WITH THE OFFERING AND SALE OF TAX ALLOCATION REFUNDING BONDS In March, 2010, the Tustin Community Redevelopment Agency issued $26,170,000 Tustin Community Redevelopment Agency Tax Allocation Bonds, Series 2010 (the "2010 Housing Bonds") to refinance low and moderate income housing activities within the City, of which $21,225,000 principal amount Successor Agency August 2, 2016 Special Meeting Minutes Page 1 of 2 remains outstanding, and in November, 2010, it issued $44,170,000 Tustin Community Redevelopment Agency Tax Allocation Bonds (MCAS -Tustin Redevelopment Project Area), Series 2010 (the "2010 Redevelopment Bonds") to finance redevelopment activities within and for the benefit of the MCAS - Tustin Redevelopment Project, of which $40,160,000 principal amount remains outstanding. The 2010 Housing Bonds are callable on any date on and after September 1, 2020 at par, while the 2010 Redevelopment Bonds are callable on any date on and after September 1, 2018 at 102% of par. Section 34177.5 of the California Health and Safety Code authorizes the Successor Agency to issue refunding bonds for the purpose of achieving debt service savings. Due to favorable market conditions, the Successor Agency is contemplating the issuance of bonds to refund the 2010 Housing Bonds and the 2010 Redevelopment Bonds on an advance basis. Based on current market conditions, it is anticipated that such refunding would generate approximately $507,000 of average annual debt service savings beginning in 2017. Any debt service savings as a result of the refunding will increase the amount of property tax revenues that can be distributed to all the taxing entities, including the City. It was moved by Agency Member Puckett and seconded by Chair Pro Tem Bernstein to adopt Resolution No. 16-03, a Resolution of the Successor Agency to the Tustin Community Redevelopment Agency approving the form and authorizing distribution of a preliminary official statement and approving the form and authorizing the execution of a bond purchase agreement in connection with the offering and sale of tax allocation bonds to refinance redevelopment activities within and for the benefit of the Tustin Redevelopment Project of the Former Tustin Community Redevelopment Agency and approving related documents and actions. Motion carried: 4-0 RESOLUTION NO. 16-03 RESOLUTION OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT IN CONNECTION WITH THE OFFERING AND SALE OF TAX ALLOCATION BONDS TO REFINANCE REDEVELOPMENT ACTIVITIES WITHIN AND FOR THE BENEFIT OF THE TUSTIN REDEVELOPMENT PROJECT OF THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY AND APPROVING RELATED DOCUMENTS AND ACTIONS ADJOURNED at 9:15 p.m. Successor Agency August 2, 2016 Special Meeting Minutes Page 2 of 2