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Home My WebLink About13-08 (Admin Budget & 5th Amended Agmt for Admin Support) OVERSIGHT BOARD RESOLUTION NO. 13-08 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY APPROVING THE AMENDED ADMINISTRATIVE BUDGET AND FIFTH 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 13-08 Page 1 of 4 I. On September 17, 2013, the Successor Agency approved the Administrative Budget for the period of January 1, 2014 through June 30, 2014 and authorized the Successor Agency to enter into a Fifth 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 Fifth 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 Fifth 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 ("DoE'), and the State Controller's Office. Section 3. The Executive Director 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. «««««««««««««Signature Page Follows»»»»»»»»»»»» I Oversight Board Resolution 13-08 Page 2 of 4 APPROVED AND ADOPTED this 24th day of -ptember, nu 13. // Doug Davert, Oftairman Oversight B9a d of the Successor Agency to the Tustin Comnij nity Redevelopment Agency ATTEST: /,—l1 Charles E. "Chuck" Puckett, Secretary Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency 1 Oversight Board Resolution 13-08 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. 13-08 was duly passed and adopted at a regular meeting of the Oversight Board, held on the 24th day of September, 2013, by the following vote: BOARD MEMBER AYES: Davert, Puckett, Soria, West (4) BOARD MEMBER NOES: None (0) BOARD MEMBER ABSTAINED: None (0) BOARD MEMBER ABSENT: Fitzsimons, Bernstein, Nielsen (3) Charles E. "Chuck" Puckett, Secretary Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency Attachment No. 1 — Administrative Budget for January 1, 2014 through June 30, 2014 Attachment No. 2 — City and Successor Agency Fifth Amended Agreement for Reimbursement of Costs for Fiscal Year 2013-2014 i Oversight Board Resolution 13-08 Page 4 of 4 IATTACHMENT NO. 1 ADMINISTRATIVE BUDGET FOR JANUARY 1, 2014 THROUGH JUNE 30, 2014 I I Object Position Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Code Admin Costs 2013 2014 1 Enforceable Obligations Paid with Redevelopment Property Tax Trust Fund $ 6,638,594 4,894,417 1,744,147 Estimated Property Tax allocated to Successory Agency 4,894,447 1,744,147 4 Administrative Cost Allowance for FY 13/14 3% $ 250,000 250,000 ESTIMATEDIEXPENSES II EMPLOYEE DETAILS Object Position Fiscal Year-Total Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Code Wages,Benefits and Admin Costs 2013 2014 Sub-Total Wages,Benefits and WC: $ - $ - $ - $ - OTHER ADMINISTRATIVE DIRECT COSTS Object Item Total During Fiscal Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Code Year 2013/14 Admin Costs 2013 2014 1 6147 Bank Service Charges 3,000 100% 3,000 1,500 1,500 2 6355 Telephone 4,800 100% 4,800 2,400 2,400 3 6400 Office Supplies 5,200 100% 5,200 2,600 2,600 4 6415 Mail and Postage Service 1,600 100% 1,600 800 800 5 6420 Printing 9,000 100% 9,000 4,500 4,500 6 6710 Meetings(staff) 0 100% 0 0 0 7 6715 Training Expense 0 100% 0 0 0 8 6730 Membership/Subscriptions 0 100% 0 0 0 9 6840 Vehicle Mileage 200 100% 200 100 100 10 6845 Vehicle Lease Equipment 6,800 100% 6,800 3,400 3,400 11 6848 IT Support Services 36,500 100% 36,500 18,250 18,250 Sub-Total Admin Cost Allowances: $ 67,100 $ 67,100 $ 33,550 $ 33,550 I CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION(ATTACHED) Object Item Total During Fiscal Total FY-Admin JUL THRU DEC JAN THRU JUN Code Year 2013/14 Costs 2013 2014 1 City Administrative Support Costs 418,000 14.6% 60,950 $ 30,475 $ 30,475 based on Cost Allocation CITY ATTORNEY(contract services) Object Description of Services Total During Fiscal Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Code Year 2013/14 Admin Costs 2013 2014 6017 City Attorney's Office-Woodruff, $ 200,000 100% $ 100,000 $ 50,000 $ 50,000 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 LIP; 2)Cappello and Noel LLP,and 3)Kutak Rock. Sub-Total City Attorney: $ 200,000 $ 100,000 $ 50,000 $ 50,000 SPECIFIC SERVICES(3rd Revised FOPS and Draft ROPS) Object Description Total During Fiscal Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Code Year 2013/14 Admin Costs 2013 2014 1 6315 Lease of Office Space $ 21,950 100% $ 21,950 10,975 10,975 Sub-Total Specific Services: $ 21,950 $ 21,950 $ 10,975 $ 10,975 TOTAL ADMINISTRATIVE SERVICE COSTS Percent to Total FY-Admin JUL THRU DEC JAN THRU JUN Admin Costs 2013 2014 TOTAL ADMINISTRATIVE SERVICE COSTS $ 250,000 $ 125,001 $ 125,000 !BUDGET-REVENUES(SURPLUS)/EXPENSES(DEFICIT) 0 $ 125,000 I$ - ATTACHMENT NO. 2 IFIFTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS (Fiscal Year 2013-2014) I FIFTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN This FIFTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Fifth Amended Agreement") is made and entered into as of , 2013 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 IX 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 at 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 I, 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 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. I. 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, and the Fourth Amended Agreement on February 19, 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 City Successor Agency will seek Oversight Board authorization on September 24, 2013 to enter into an Amended Agreement for Reimbursement of Costs with the City to reflect modifications to the Administrative Budget. 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 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 the City to the City Successor Agency for the period of July 1, 2013 through June 30, 2014 is Two Hundred Fifty Thousand ($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 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." 2. Miscellaneous. (a) Fifth 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 Fifth Amended Agreement and the Original Agreement shall be binding upon and inure to the benefit of the parties hereto. «««««««««««««<Signature Page Fol lows»»»»»»»»»»»»»> Page 3 IN WITNESS WHEREOF, the parties have caused this Fifth 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: Elwyn A. 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: Elwyn A. 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