HomeMy WebLinkAbout18-02 (Twelfth Amended Agreement) OVERSIGHT BOARD RESOLUTION NO. 18-02
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE AMENDED
ADMINISTRATIVE BUDGET AND TWELFTH 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 Cafifornia Redevelopment Association v.
Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution
Act and thereby all redevelopment agencies in California are subject tc 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
aft
Oversight Board Resolution 18-02
Page 1 of 3
I. On January 16, 2018, the Successor Agency approved the Administrative Budget for the
period of July 1, 2018 through June 30, 2019 and authorized the Successor Agency to
enter into an Twelfth 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 Twelfth 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 Twelfth
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, 18-02
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APPROVED AND ADOPTED this 23rd day of January, 2018.
FOY' Doug Dav ' man
Oversight Board�F the Successor Agency to the
Tustin Community Redevelopment Agency
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 }
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. 18-02 was duly passed and adopted at a regular meeting of the
Oversight Board, held on the 23rd day of January 2018, by the following vote:
BOARD MEMBER AYES: Opel, Puckett, Bernstein, Piguee, Soria (5)
BOARD MEMBER NOES: (0)
BOARD MEMBER ABSTAINED: (0)
BOARD MEMBER ABSENT: Davert (1)
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, 2018 through June 30, 2019
Attachment No. 2 — City and Successor Agency Twelfth Amended Agreement for
Reimbursement of Costs for Fiscal Year 2018-2019
Oversight Board Resolution 18-02
Page 3 of 3
BUDGET •' ADMINISTRATIVE EXPENSES(JULY 20181
ISUCCESSOR AGENCY TO THE TUSTIN COMMUNITYREDEVELOPMENT
ESTIMATED REVENUES
Object Position Percent to Total FY-Admin JULY 2018 THRU
Code Admin Costs JUNE 2019
1 Enforceable Obligations Paid with Redevelopment Property
Tax Trust Fund $ 2,592,276 2,592,276
Estimated Property Tax allocated to
Successory Agency 2,592,276
4 Administrative Cost Allowance for FY 3% $ 250,000 250,000
18/19(HSC Section 34171(b)(3))
ESTIMATED EXPENSES
EMPLOYEE DETAILS
Object Position Fiscal Year-Total Percentto TotaIFY-Admin JULY 2018 THRU
Code Wages,Benefits and Admin Costs JUNE 2019
Sub-Total Wages,Benefits and WC: $ $ $
OTHER ADMINISTRATIVE DIRECT COSTS
0 Object Item Total During Fiscal Percent to TotaIFY-Admin JULY2018THRU
Code Year 2018/19 Admin Costs JUNE 2019
1 6147 Bank Service Charges 3,000 100% 3,000 3,000
2 6355 Telephone 3,700 1001y. 3,700 3,700
3 6400 Office Supplies 5,200 100% 5,200 5,200
4 6415 Mail and Postage Service 1,600 100% 1,600 1,600
5 6420 Printing 9,000 100% 9,000 9,000
6 6710 Meetings(staff) 0 100% 0 0
7 6715 Training Expense 0 100% 0 0
8 6730 Membership/Subscriptions 0 100% 0 0
9 6840 Vehicle Mileage 200 100% 200 200
10 6845 Vehicle Lease Equipment 6,800 100% 6,800 6,809
11 6848 IT Support Services 36,500 100% 36,500 36,500
Sub-Total Admin Cost Allowances: $ 66,000 $ 66,000 $ 66,000
CITY ADMINISTRATIVE SUPPORT COSTS BASED ON COST ALLOCATION(ATTACHED)
Object Item Total During Fiscal Total FY-Admin JULY 2018 THRU
Code Year 2018/19 Costs JUNE 2019
1 City Administrative Support Costs I S ,00C 40,1'` 60,935 $ 60,935
based on Cost Allocation
CITY ATTORNEY(contract services)
Object Description of Services Total During Fiscal Percent to Total FY-Admin JULY 2018 THRU
Code Year 2018/19 Admin Costs JUNE 2019
6017 City Attorney's Office-Woodruff, <. 100,000 100=0 100,000 S 100,000
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 $ 100,000
SPECIFIC SERVICES
Object Description Total During Fiscal Percent to Total FY-Admin JULY 2018 THRU
Code Year 2018/19 Admin Costs JUNE 2019
1 6311, Lease of Office Space 23 Oi;� 1Q0 .: $ 23,065 23,065
Sub-Total Specific Services: $ 23,065 $ 23,065 $ 23,065
TOTAL ADMINISTRATIVE SERVICE COSTS Percent to Total FY-Admin JULY 2018 THRU
Admin Costs JUNE 2019'
TOTAL ADMINISTRATIVE SERVICE COSTS $ 250,000 $ 250,000
BUDGET-REVENUES(SURPLUS)/EXPENSES(DEFICIT) 0 $
TWELFTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This TWELFTH AMENDED AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN ("Twelfth Amended Agreement") is
made and entered into as of January 23, 2018, 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.
G Assembly Bill 1X 26 added Parts 1.8 and 1.85 to Division 24 ofthe California Health
& Safety Code, which laws caused the dissolution and wind down of all redevelopment agencies
("Dissolution Act").
D. On December 29, 2011, California Redei^elopment 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 Aet, 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 halanccs 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 perfonn 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, the Tenth Amended Agreement on January 26, 2016 and the Eleventh Amended
Agreement on January 24, 2017 (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 reimhursement agreement with the City for the Successor Agency's matching contribution
to the Tustin Ranch Road Improvements Project in the amounts of 55,983,863 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.
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N. The City Successor Agency will seek Oversight Board authorization on January 23,
2018, 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 2018-19.
(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, 2018 through June 30, 2019, 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 2018-19, 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, 2018 through June 30, 2019. 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) TWELFTH 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 TWELFTH 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 TWELFTH Amended Agreement
to he executed by their officers thereunto duly authorized on the date first above written.
`CITY"
CITY OF TUSTIN, a California municipal corporation
By:
Al Murray, 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
By:
Al Murray,
Successor Agency Chairman
ATTEST:
Erica N. Rabe,City Clerk
on behalf of the Successor Agency
APPROVED AS TO FORM
David Kendig, Legal Counsel
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