HomeMy WebLinkAbout14-06 (Amended Admin Budget & 6th Amended Agmt. for Admin. Support)OVERSIGHT BOARD RESOLUTION NO. 14 -06
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE AMENDED
ADMINISTRATIVE BUDGET AND SIXTH 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 14 -06
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I. On February 18, 2014, the Successor Agency approved the Administrative Budget for
the period of July 1, 2014 through December 31, 2014 and authorized the Successor
Agency to enter into a Sixth 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 Sixth 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 Sixth 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 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.
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Oversight Board Resolution 14 -06
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APPROVED AND ADOPTED this 25th day of F ruary, 2014.
Doug Davert, Ch rman
Oversight Board f the Successor Agency to the
Tustin Community Redevelopment Agency
ATTEST:
J
Charles E. "Chuck" Puckett, Secretary
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
Oversight Board Resolution 14 -06
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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. 14 -06 was duly passed and adopted at a special meeting of the
Oversight Board, held on the 25th day of February, 2014, by the following vote:
BOARD MEMBER AYES: Davert, Puckett, Nielsen, Soria, West (5)
BOARD MEMBER NOES: Nnna (0)
BOARD MEMBER ABSTAINED: Nine (0)
BOARD MEMBER ABSENT: Fitzsimons, Bernstein (2)
&Uvz,��
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, 2014 through December 31, 2014
Attachment No. 2 — City and Successor Agency Sixth Amended Agreement for
Reimbursement of Costs for Fiscal Year 2014 -2015
Oversight Board Resolution 14 -06
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ATTACHMENT NO. 1
ADMINISTRATIVE BUDGET FOR JULY 1, 2014 THROUGH DECEMBER 31, 2014
ESTIMATED REVENUES
Object Position Percent to Total FY - Admin JUL THRU DEC
Code I Admin Costs 2014
1 Enforceable Obligations Paid with Redevelopment Property
Tax Trust Fund $ 16,035,410 14,310,463
Estimated Property Tax allocated to
Successory Agency 14,310,463
4 Administrative Cost Allowance for FY 14/15 3% $ 481,062 250,000
ESTIMATED EXPENSES
EMPLOYEE DETAILS
Object Position Fiscal Year - Total Percent to TotalFY - Admin JUL THRU DEC
Sub -Total Wages, Benefits and WC: $ $ $
OTHER ADMINISTRATIVE DIRECT COSTS
Object
Code
Item
Total During Fiscal
Year 2014/15
Percent to
Admin
Total FY - Admin
Costs
JUL THRU DEC
2014
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
4,800
5,200
1,600
9,000
0
0
0
200
6,800
36,500
$ 67,100
100%
3,000
1,500
100% 4,800
2,400
100% 5,200
2,600
100% 1,600
800
100% 9,000
4,500
100% 0
0
100% 0
0
100% 0
0
100% 200
100
100% 6,800
3,400
100% 36,500
18,250
$ 67,100
$
33,550
CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED)
Object
Code
Item
Total During Fiscal
Year 2014/15
Total FY - Admin
Costs
JUL THRU DEC
2014
1
City Administrative Support Costs
based on Cost Allocation
880,700
21.8%
192,012
$
105,475
CITY ATTORNEY (contract services)
Object
Code
Description of Services
Total During Fiscal
Year 2014/15
Percent to
Admin
Total FY - Admin
Costs
JUL THRU DEC
2014
6017
City Attorney's Office - Woodruff,
Spradlin & Smart (Including: Stradling
Yocca Carlson & Rauth; Remy, Thomas,
Moose & Manley, Waters & Company,
Jeanette Justus). This does not include
legal services from the following firms
that are associated with project costs:
1) Armbruster Goldsmith & Delvac LLP;
2)Cappello and Noel LLP, and 3) Kutak
Rock.
Sub -Total City Attorney:
$ 200,000
$ 200,000
100% $ 200,000
$
100,000
$ 200,000
$
100,000
SPECIFIC SERVICES (3rd Revised EOPS and Draft ROPS)
Object
Code
Description
Total During Fiscal
Year 2014/15
Percent to
Admin
Total FY - Admin
Costs
JUL THRU DEC
2014
1 6315
Lease of Office Space
Sub -Total Specific Services:
$ 43,900
$ 43,900
50%
$ 21,950
10,975
$ 21,950
$
10,975
TOTAL ADMINISTRATIVE SERVICE COSTS
Percent to
Admin
Total FY - Admin
Costs
JUL THRU DEC
2014
TOTAL ADMINISTRATIVE SERVICE COSTS
$ 481,062
$
250,000
BUDGET - REVENUES (SURPLUS) /EXPENSES (DEFICIT)
0 $
-
ATTACHMENT NO.2
SIXTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
(Fiscal Year 2014 -2015)
1
SIXTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY /SUCCESSOR AGENCY OPERATIONS LOAN
This SIXTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND
CITY /SUCCESSOR AGENCY OPERATIONS LOAN ( "Sixth Amended Agreement ") is made
and entered into as of February 25, 2014 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
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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, the Fourth Amended Agreement
on February 19, 2013, and the Fifth Amended Agreement on September 24, 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 February 25,
2014 to enter into an Amended Agreement for Reimbursement of Costs with the City to reflect
modifications to the Administrative Budget.
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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 2014-15.
(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, 2014, through June 30, 2015, is Four Hundred Eighty -One Thousand and Sixty -Two Dollars
($481,062). Pursuant to the provisions of Section 4 herein, City Successor Agency agrees to pay the
sum of $481,062 to City to pay for the estimated administrative expenses of the City Successor
Agency for the period of fiscal year 2014 -15, 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, 2014 through December 31,
2014; and 2) January 1, 2015 through June 30, 2015. 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) Sixth 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) Bin_ ding. This Sixth Amended Agreement and the Original Agreement shall be
binding upon and inure to the benefit of the parties hereto.
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IN WITNESS WHEREOF, the parties have caused this Sixth Amended Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
ATTEST:
Jeffrey C. Parker, City Clerk
APPROVED AS TO FORM
David Kendig, City Attorney
ATTEST:
Jeffrey C. Parker, City Clerk
on behalf of the Successor Agency
APPROVED AS TO FORM
David Kendig, Legal Counsel
"CITY"
CITY OF TUSTIN, a California municipal corporation
Elwyn A. Murray, Mayor
"CITY SUCCESSOR AGENCY"
SUCCESSOR AGENCY TO THE TUSTIN
COMMUNITY REDEVELOPMENT AGENCY
M.
Elwyn A. Murray
Successor Agency Chairman
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