HomeMy WebLinkAbout15-04 (Admin Budget & 8th Amended Agmt for Admin Support)OVERSIGHT BOARD RESOLUTION NO. 15 -04
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE
AMENDED ADMINISTRATIVE BUDGET AND EIGHTH
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
Oversight Board Resolution No. 15 -04
Page 1 of 3
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
I. On February 17, 2015, the Successor Agency approved the Administrative Budget
for the period of July 1, 2015 through December 31, 2015 and authorized the
Successor Agency to enter into an Eighth 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 Eighth 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 Eighth
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 No. 15 -04
Page 2 of 3
0
APPROVED AND ADOPTED this 24th day of February, 2015.
Doug Davert,
Oversight Bo;
the Tustin Co
ATTEST:
Charles E. "Chuck" Puckett, Secretary
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN )
irman
of the Successor Agency to
iunity Redevelopment Agency
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. 15 -04 was duly passed and adopted at a regular meeting
of the Oversight Board, held on the 24th day of February 2015, by the following vote:
107.11 M 9
Davert, Nielsen, Soria, West (4)
N nc (0)
None (0)
Fitzsimons, Puckett. Bernstein (3)
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, 2015 through December 31, 2015
Attachment No. 2 —City and Successor Agency Eighth Amended Agreement for
Reimbursement of Costs for Fiscal Year 2015 -2016
Oversight Board Resolution No. 15 -04
Page 3 of 3
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ATTACHMENT NO. 1
ADMINISTRATIVE BUDGET FOR JULY 1, 2015 THROUGH DECEMBER 31, 2015
ESTIMATED REVENUES
Object Position
Cade
Percentto TotaIFY -Admin
Admin Costs
JULYTHRU
DEC 2016
1 Enforceable Obligations Paid with Redevelopment Property
Tax Trust Fund
$ 7,697,186
5461,342
Estimated Property Tax allocated to
Successory Agency
4 Administrative Cost Allowance for FY 15/16
Bank Service Charges
5,461,342
3% $ 2S0,000
125 000
1,500
2 6355
ESTIMATED EXPENSES
EMPLOYEE DETAILS
Object Position Fiscal Year- Total[ Percentto TOtsi FY- Admin[ JULYTHRU
Sub -Total Wages, Benefits and WC:
OTHER ADMINISTRATIVE DIRECT COSTS
Object
Code
Item
Total During Fiscal
Year201516
Percent to
Admin
Total FY - Admin
Costs
JULYTHRU
DEC 2036
1 6147
Bank Service Charges
3,000
100%
3,000
1,500
2 6355
Telephone
4,800
100%
4,800
2,400
3 6400
Office Supplies
5,200
100%
5,200
2,600
4 6415
Mail and Postage Service
1,600
100%
1,600
800
5 6420
Printing
9,000
100%
9,000
4,500
6 6710
Meetings (staff)
0
100%
0
0
7 6715
8 6730
Training Expense
Membership /Subscriptions
0
0
100%
0
0
100% 0
0
9 6840
Vehicle Mileage
200
100%
200
100
10 6845
Vehicle Lease Equipment
6,800
100%
6,800
3,400
11 6848
IT Support Services
Sub -Total Admin Cost Allowances:
36,500
$ 67,100
100%
36,500
18,250
$ 67,100
$
33,S50
CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION (ATTACHED)
Object
Code
Item
Total During Fiscal
Year 2015 36
Total FY - Admin
Costs
JULYTHRU
DEC 2016
1
City Administrative Support Costs
based on Cost Allocation
418,000
14.6%
60,950
S
30,475
CITY ATTORNEY (contract services)
Object
Code
Description of Services
Total During Fiscal
Year2015 /16
Percentto
Admin
TotaIFY -Admin
Costs
JULYTHRU
DEC 2016
6017
City Attorney's Office - Woodruff,
Spradlin & Smart (Including: Stradling
Yocc i 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% $ 100,000
$
50,000
$ 100,000
$
50,000
SPECIFIC SERVICES (3rd Revised EOPS and Draft RODS)
Object
Code
Description
Total During Fiscal
Year 2015/16
Percent to
Admin
Total FY - Admin
Costs
JULYTHRU
DEC 2016
1 6315
Lease of Office Space
Sub -Total Specific Services:
$ 21,950
$ 21,950
100%
$ 21,950
10,975
$ 21,950
$
10,975
TOTAL ADMINISTRATIVE SERVICE COSTS
Percent to
Admin
Total FY -Admin
Costs
JULYTHRU
DEC 201
TOTAL ADMINISTRATIVE SERVICE COSTS
$ 250,000
$
125,000
BUDGET - REVENUES (SURPLUS) /EXPENSES(DEFICIT)
0 $
ATTACHMENT NO. 2
EIGHTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
(Fiscal Year 2015 -2016)
EIGHTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY /SUCCESSOR AGENCY OPERATIONS LOAN
This EIGHTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS AND
CITY /SUCCESSOR AGENCY OPERATIONS LOAN (`Eighth Amended Agreement ") is made
and entered into as of February 24, 2015, 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 1 X 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 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, the Fourth Amended Agreement
on February 19, 2013, the Fifth Amended Agreement on September 24, 2013, the Sixth Amended
Agreement on February 25, 2014, and the Seventh Amended Agreement on September 30, 2014 (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 0).
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 24,
2015 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 2015 -16
(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, 2015, through June 30, 2016, 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 2015 -16, 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, 2015 through December 31, 2015; and 2) January 1, 2016 through
June 30, 2016. 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) EIGHTH 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 EIGHTH 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 EIGHTH 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
0
ATTEST:
Jeffrey C. Parker, City Clerk
APPROVED AS TO FORM
David Kendig, City Attorney
Charles E. Puckett, Mayor
L°CITY SUCCESSOR AGENCY"
SUCCESSOR AGENCY TO THE TUSTIN
COMMUNITY REDEVELOPMENT AGENCY
LE
ATTEST:
Jeffrey C. Parker, City Clerk
on behalf of the Successor Agency
APPROVED AS TO FORM
David Kendig, Legal Counsel
Charles E. Puckett
Successor Agency Chairman
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