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2015-02-05 Oversight Board Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the Oversight Board in open session are available for public inspection. They may be inspected during regular business hours in the City Clerk's Office at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (323) 583-8811. Notification of at least 24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon Thursday, February 5, 2015, 4:00 p.m. Council Chamber, City Hall 4305 Santa Fe Avenue Vernon, California W. Michael McCormick, Chairperson Jonathan S. Fuhrman, Vice Chairperson William J. Davis, Board Member Mary Gallagher, Board Member Steven Reyes, Board Member David Vela, Board Member Marlene Dunn, Board Member CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the Oversight Board on any matter that is within the subject matter jurisdiction of the Board. The public will also be given a chance to comment on matters which are on the posted agenda during the Board’s deliberation on those specific matters. INTRODUCTION ITEM 1. Introduction of newly appointed Board Member Marlene Dunn who is replacing Alex Cherniss as the representative for the Los Angeles County Office of Education. / / / / / / Oversight Board of the Successor Agency to the Redevelopment Agency Regular Meeting Agenda February 5, 2015 Page 2 of 2 MINUTES – TO BE RECEIVED AND FILED 2. Minutes of the Adjourned Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held September 30, 2014. ACTION ITEMS 3. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon Adopting, Approving, and Ratifying the Recognized Obligation Payment Schedule for the Period July 1, 2015 through December 31, 2015, and Approving Certain Related Actions Pursuant to California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g). ORAL REPORTS 4. Bandini Grant Deed pursuant to the Long-Range Property Management Plan. 5. Brief reports on activities, other brief announcements, and directives to staff. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 2nd day of February 2015. By: ________________________________ Ana Barcia, Secretary MINUTES OF THE ADJOURNED REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON HELD TUESDAY, SEPTEMBER 30, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Jonathan S. Fuhrman, William J. Davis, Steven Reyes (partial), David Vela, and Mary Gallagher MEMBERS ABSENT: W. Michael McCormick and Marlene Dunn (not sworn in) The meeting was called to order at 4:04 p.m. by Vice Chairperson Fuhrman, the meeting is dedicated in remembrance of Honorable Michael A. Ybarra, 1952-2014; Member Davis led the flag salute. CHANGES TO THE AGENDA Legal Counsel Gustavo Lamanna confirmed that there are no changes to the agenda. PUBLIC COMMENT Vice Chairperson Fuhrman announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Board. No one responded. INTRODUCTION ITEMS 1. Introduction of newly appointed Board Member Marlene Dunn who is replacing Alex Cherniss as the representative for the Los Angeles County Office of Education. Deputy City Clerk to administer the Oath of Office. The introduction item was deferred as newly appointed Board Member Marlene Dunn was not in attendance. MINUTES – TO BE RECEIVED AN FILED 2. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held February 6, 2014. 3. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held March 6, 2014. It was moved by Vela and seconded by Davis to approve the minutes of the February 6th and March 6th meetings. Motion carried, 4-0, Member Reyes had not yet entered the meeting. ACTION ITEMS 4. Revisions to the Board’s Conflict of Interest Code, and authorization of the incorporation of said recommended Code into a Master City of Vernon Conflict of Interest Code. Recommendation: (1) Find that the proposed actions do not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because they constitute administrative activities; and even if the directives did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Review the Board’s existing Conflict of Interest Code (“Code”), and either (a) submit proposed revisions to the City Council or (b) recommend that no revisions Oversight Board Adjourned Regular Meeting Minutes September 30, 2014 Page 2 of 3 be made. It is further recommended that the Commission direct its Chairperson to document said decision by filing the “2014 Local Agency Biennial Notice” with the Office of the City Clerk; and (3) Recommend that the City Council incorporate the Commission’s Code, with any recommended revisions, into one city-wide Master Conflict of Interest Code. Deputy City Clerk Ana Barcia reported on the recommendation. Barcia confirmed for Vice Chairperson Fuhrman the disclosure requirements. It was moved by Fuhrman and seconded by Vela to approve the recommended revisions to the Conflict of Interest Code and incorporate said revisions into a Master City of Vernon Code. Motion carried, 4-0. Member Reyes had not yet entered the meeting. 5. Resolution No. OB-36 – A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized Obligation Payment Schedule for the period January 1, 2015 through June 30, 2015, and approving certain related actions pursuant to California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g). Legal Counsel Gustavo Lamanna provided the oral report on the proposed approval. Lamanna clarified, that as part of the recommendation staff is seeking authority to modify and make minor non-substantive adjustments to the Recognized Obligation Payment Schedule (“ROPS”) if necessary. Successor Agency Staff Alex Kung further reported on the ROPS. It was moved by Gallagher and seconded by Davis to approve Resolution No. OB-36 with the authority to staff to make appropriate changes as necessary. Motion carried, 4-0. Member Reyes had not yet entered the meeting. ORAL REPORTS Agendized items were addressed out of order. 7. Announcement on the transition of summary Minutes to “action” Minutes effective July 1, 2014. Member Reyes entered the meeting. Deputy City Clerk Ana Barcia announced the new minute format. DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 6. Further direction to Successor Agency Staff regarding the winding down of affairs pursuant to AB26 and bond pay off with available funds. Legal Counsel Gustavo Lamanna reported on the sale and disposition of the Angelus Can property, the receipt of funds and on the County’s refunding program. In response to Vice Chairperson Fuhrman, Lamanna reported on the bonds. Finance Director William Fox further reported on the interest rates and maturity dates. Lamanna noted the disposition of the Austin Trucking property pursuant to the long-range property management plan. The Board had previously requested an appraisal of the property before moving forward; however, the Department of Finance did not approve the expenditure and therefore the appraisal was not conducted. In response to Member Vela, Lamanna explained that the disposition of the property to the City of Vernon would be limited to governmental use. Oversight Board Adjourned Regular Meeting Minutes September 30, 2014 Page 3 of 3 In further response to Member Vela, Successor Agency Staff Alex Kung explained the need to retain a Vernon Fire Station at said location. Vice Chairperson Fuhrman expressed his concerns regarding the property’s value. Both Vice Chairperson Fuhrman and Member Vela had concerns on the use of the property and sought assurance that the City of Vernon will not sell the property, and that it will remain for governmental use. Lamanna advised that staff will provide the grant deed at the next meeting which addresses the Boards concerns. ORAL REPORTS (continued) 8. Brief reports on activities, other brief announcements, and directives to staff. Legal Counsel Gustavo Lamanna advised that the November meeting is to be cancelled. The next meeting will be held on December 4, 2014. Board members confirmed their availability. Vice Chairperson Fuhrman inquired on the status of the $13 million transfer to the City of Vernon. In response, Lamanna reported on the previous communications. With no further business, at 4:36 p.m., Chairperson McCormick adjourned the meeting. ________________________ W. Michael McCormick Chairperson ATTEST: _________________________ Ana Barcia Secretary SUCCESSORAGENCY FORTHE VERI\ON February 5, 2015 Honorable Chairperson and Members of the Oversight Board to the Successor Agency for the Vernon Redevelopment Agency Alex Kung, Successor Agency Staff Bil* Recognized Obligation Payment Schedule for 2015-2016 Period A (Juty l, 2015 through December 31, 2015) REGEIVED FEB 0 2 2015 ATION DATE: TO: FROM: RE: Recommendation: Successor Agency staff recommends the Oversight Board approve the attached resolution to approve the attached forward-looking recognized obligation payment schedule ("ROPS") in substantially in the form as presented. Background: Pursuant to Health & Safety Code sections 34177(m) and 34180(9), the Successor Agency must submit its ROPS for the six months beginning July 1,2015 through December 31, 2015 by March 3,2015. This action requires Oversight Board approval. ROPS The Successor Agency staff prepared the ROPS for this period and circulated the ROPS for the February 5, 2015 Oversight Board meeting. Attachment l) Resolution approving 2015-2016 Period A ROPS schedule. REDEVELOPMENT AGENCY STAFF REPORT RESOI-,UTION NO. A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON ADOPTING. APPROVING, AND RATfFYfNG THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2015 THROUGH DECEMBER 31, 2015, AND APPROVING CERTAIN RELATED ACTIONS PI]RSUANT TO CAIIFORNIA HEALTH & SAFETY CODE SECTIONS 34177 (1) , 34177 (m) AND 34180 (S) WHEREAS, on February 5, 2015, the Oversight Board of the Successor Agency tso the Redevelopment. Agency Eo the Citsy of Vernon ("Oversight Board") considered the adoption, approval and ratification of the Recognized Obligation Palment Schedule of the Successor Agency to the former Vernon Redevelopment. Agency for the reporting period of Jufy l-, 2015 t.hrough Decemlcer 3L, 201-5 ("ROPS") also referred to as 15-15A using the electronic -version of the recognized obligation palment schedule provided to the Successor Agency by the Department of Finance ("Finance") ; and WHEREAS, on February 5, 2Ot5, Che Oversight Board approved Ehe ROPS wiEh the express authorization to a11ow staff of the Successor Agency to the former Vernon Redevelopment Agency (,'Successor Agency" ) to negoEiate with the Los Angeles County Auditor-Control-Ier to assure t,he prior period adjustment,s are accuratel-y ref l-ected and that there is sufficient funding appropriately set aside to saEisfy indebtedness of Ehe former Vernon Redevelopment Agency, including the Series 2005 and 201-l- bonds; and WHEREAS, in furtherance of the foregoing recitals, the Oversight Board desires to adopt, approve, and rat.ify the ROPS attached hereto and instructs staff and special counsel- tso the Successor Agency to negotiate with lhe I-,os Angeles County Audit.or- Controll-er and Finance, as and if appropriate, foll-owing Ehe February 5, 20]-5, meet.ing of t.he Oversight Board, tso assure the goals and desires of the Oversight Board in this resolut.ion are carried out.. NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS FOLLOWS: SECTfON 1: The Oversight Board of the Successor Agency to the Redevelopment. Agency of Ehe CiEy of Vernon hereby finds and determines thats the above recitals are tsrue and correct. SECTIoN 2: The oversight Board of the Successor Agency to the Redevelopments Agency of Ehe City of Vernon hereby adopEs, approves, and ratifles the RoPS, in tshe form atEached to this Resolution as Exhibit A, pursuant to California HealEh & Safety Code secEions 34L77 (l\ , 34L'77 (m) , and 34180 (9) . SECTION 3: Pursuant to California Health & Safety Code section 34L79(h), Finance may review an Oversight Board action. An action of tshe Oversight Board sha11 become effective five business days after notsice in t.he manner specified by Finance is provided unless Finance requests review. The AssisEant Executsive Director of che Successor Agency, Mr. Alex Kung, c/o Vernon City HaI1, 4305 Santa Fe Avenue, Vernon. CA 90058 Telephone (323) 583-881-1 Extension 355 (akung@ci.vernon.ca.us) is designat.ed as lhe official for notice of review by Finance. Except. as otherwise provided in California Heal-th & Safetsy Code section 34179 (h) , in the event Finance requests a review of a given oversight board action, Finance shall have 40 days from the date of this reguesc to approve the Oversight Board action or return it Eo lhe Oversight Board for recons iderat ion; the OversighE Board shall resubmit the modified action for Finance approval and lhe modified 2 Oversight Board action shaI1 not become effective until approved by Finance. SECTION 4: The Secretary of the Oversight Board, sha11 certify to the passage, approval and adoption of this resolution, and the Secretary sha11 cause this resolution and the Secretary, s certification to be properly fi1ed. APPROVED AI\TD ADOPTED this 5th day of February , 201-5. Name: Title: Chairman / Vice Chairman ATTEST: Ana Barcia, Secretary -3 STATE OF CALI FORNIA COUNTY OF LOS ANGELES f, Arta Barcia, acting on behalf of the Oversight Board as it,s Secretary, do hereby cerEify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the Oversight Board of the Successor Agency to the Redevelopment Agency of Ehe City of Vernon aE a adjourned regular meeting of Ehe Oversight Board duly held on Thursday, February 5, 201-5, and thereafter was duly signed by tshe Chairman or Vice Chairman of the OversighE Board. Executed this day of February, 20L5, al Vernon, California. Ana Barcia, Secretary (SEAL) 4 EXHIBIT A Rocognlzod Obligatlon Paymont 6ch€dule (ROPS .15.16A) - ROpS D€tall July 1, 2015 through Decombsr 31, 2Ot5 D E F G H Con[acUAgreement ConlracuAgreemenl Tolal Oulslandrng [*mr;--_l--;l ,roperty glshtenencB ).1112012 il30t2018 -A Counly46 )tli@ rroperlyTax on properlles owned by tDA qNX - Accl f276 03 5,40(2,701 2 70( ,onds lSSUed On or )elorc 12J31110 il2112005 hnk of New York-Trustee jene6 2005 Piinclpal end/or lnle16st 99 40.255,00(N ,520,27i 2,520,272 londs issued Aller 2t31t10 )1112030 lank o[ New York-Trusl€e ieaaes 201 1 Principal 6nd/or lnleresl \NX-Accl 8276 15,700,00(1,759,05(1,75S 05( - Accl f276 03 ieserves 11 t2014 lenh ol New Yr ieries 2005 Prirclpol snd/or lntorest )n Sonds (mainlalning & s€lllng esM6 ,ond resNe6 p6r ll&S Code Sec 14177(b)&34180(cl) \NX - Acct ,276 03 $ - A@t 127603 |1t2014 i/302014 ieries 2011 Principal end/or lnleEst ,n Bonds (malnlaining E Beltlng E6lde DM cserues per H&S Code Sec |417zbl & 34lm{ cl) \NX - A@t il276 03 -egal il112012 (ane, B6llmer, & B6rkmsn L€gel RepGsenlallon lor S@essor \ccl il276 02 & 99. \NX - A@t f276 03 )13012014 lltyol V(10% & 20% ol Cily Slafl llho and iupplies to wind dom RDA \NX-Accl 127603_ees 11120't4 lond Loglstlx y lnveslmenl SaNlc€ Fs6 26 00(N 7,068 $706 -Accl 127603 mEiRFf,;f IPTTF Shortlall 11t2014 i|3012014 \gency Succ6ssor Agency rnd LA Counly A-C .emiltEnce Ms \cct #276 02 & 99, \NX - Accl #276 03 )roperly ,lalhlenance v6t2002 it30t2014 [en6nl PeyDr Auslln frekino lenlel ln@mo \NX - N - A@l *276 03 ,t112014 \g€rcy S@ssor Ag€rcy lpprcwd ROPS 3requirod l4,l'18,46: md LA CounlyArc rcmllbE @s ihorl 3r.659 7S3 N $ /€mon Redevelopmenl \o€ncv SueBsor Aoen.v N $ -Accl f27603 leserves 1212312013 ve.non Redevolopmehl Agenoy Succesgor Agency lE zb Eono Kesarve Esctow re: Serles 1005 6nd 2011 bonds per HoElth & ;afety Cods sectlon 34177(b), t4177lcl, 34177(h), 3417 7( lX 1 X F) lor \ngelus Csn proo€eds $ -Aocl #27603 il1t2013 -os Ang€l€s CounlyTar :olloclor )utslandhg Prcpedy tax blll lor perlod '/1/196/30/14 lor 4900 Pacific Alvd. 20,19:N 20 19:20 19: M \NX. A@t. #276.03 nduslrial RP - Acct. f276.02 & 99 \NX - Acct #276,03 lnduslrial RP - Acct. #276.02 & gg rNX - Acct. #275 03 N D N N N ! *zto uz 6w \NX - Accl #276 03 nduslrial RP - A6t. *276.02 & 99 \NX - A6t #278 03 $ N ) b s N a I ---- I I I ! Recognized obligation Payment Schedule (Rops 15-16A) - Summary Filed for the Juty i,2O1S through December 31 ,2015 period Name of Successor Agency: Name of County: Vernon Current Period Debt or Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding Sources (B+C+D): B Bond Proceeds Funding (ROpS Detait) C Reserve Balance Funding (ROPS Detail) D Other Funding (ROPS Detait) E Enforceable Obligations Funded with RpTTF Funding (F+C): F Non-Administrative Costs (ROPS Detail) G Administrative Costs (ROPS Detail) H Current Period Enforceable Obligations (A+E): Six-Month Total 9- $ 4,312,505 4,312,505 $ 4,312,505 County Auditor Controller Reported Prior Period Adjustment to Current Period RPTTF Requested Funding Successor Prior Period to Current Period RPTTF I Enforceable Obligations funded with RpTTF (E): J Less Prior Period Adjustment (Report of prior period Adjustments column s) K Adjusted Current Period RPTTF Requested Funding (l-J) L Enforceable Obligations funded with RpTTF (E): M Less Prior Period Adjustment (Report of Prior Per:iod Adjustments Column AA) N Adjusted Current Period RPTTF Requested Funding (L-M) Certification of Oversight Board Chairman: Pursuant to Section 3a177 (m) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named agency. 4,312,505_ $ 4,312,505 4,312,505_ 4,312,505 Name Title lsl Signature Date Recognized obligation Payment schedule (Rops 15-16A) - Report of cash Balances Amounts in Whole Dollars) Prior ROPS RPTTF distributed as reserve for future Available Cash Balance (Actuat 07/01/.t4) Revenue/lncome (Actual 1?lg1l 1 1l RPTTF amounts should tie to the Rops 14_15A distribution from the County Auditor€ontroller during June 2014 for ROPS 14-15A Enforceabte Obtigations (Actuat 121311141 RPTTF amounts, H3 plus H4 should equal total reported actual in the Report of PPA, Columns L and e of Ayailable Cash Balance lAf/.uat 12t311141 amount retained should only include the amounts distributed as for future period(s) lrl-'l5A RPTTF Prior Period Adjustment amount should tie to the self-reported ROPS 14-15A ppA in the of PPA, Column S Ending Actual Available Cash Balance to G = (1 + 2 - 3 - 4), 11 = 11 + Z -3 -4- 5) Available Cash Balance (Actuat O,l/01/iS) (C, D, E, G=4+ 6, F= H4+ F4+ F6, and H = 5+ 6) Revenue/lncome (Estimate 0d30/1 S) RPTTF amounts should tie to the ROPS 14-1SB distribution from the Expenditures for ROPS 14-l58 EnforceaUta OUligations lestirn,ate Retention of Available Cash RPTTF amount retained shoul Estimated Available Cash Batance (Z + E - 9 -lO) Rocognlz€d Obllgatlon Psymonl Schodule (ROPS l5-l0A). Roport ot Pdor Period Adrustmenls Repoded for lhe ROPS 14-15A (July 1, 201 4 through D€cember 3'1, 201 4) P€riod Pu6uant to Heatth and Safety code (HSc) section 341g6 (a) ti4$.@r&.rq(!at!.n tFdptuFrioddtuF4:tuunbBc!.dhnsreO,.sr.Dqd .nFihd|n,@d.,hrturMrr!.irnrErdhr.dd.$.@r*hRoE1+1uU,,hidroGnh.zo ,pd. tutu., Net SA NoFAdmln .nd Admln PPA (Ahounl Uaed to B E F GIHco Avcl16ble RPTTF Nel L9alar o, Authorl4d, Dlff€r€nc6 Av.llabl. RPIIF Dlffe,enc€ (lllobl Bctual sxc€ed3 lotal N€l Dlflercnc.Aulhorlzod / I lndus[ial RP -Ael.t-T---..--:T- ,276 02 8 90 ANX \ccl 1276 03 lndusulal RP -Acc 1276 02 & 99 ANX \@t d276 03 lndusrial RP - Acc 127602&SANX \cct f276 03 lnduskiel RP - A@ 1276 02 & 99 ANX 276 02 & 99 ANX ,ccl ,276.03 ndustrisl RP - Acc 276 02 A 09 ANX cct #276 03 nduslilsl RP -Acc 276 02 & 99 ANX 42,471 1 1 1 1 OFFICIAL BUSINESS Document entitled to free recording Gov. Code sections 6103, 27383 RECORDING REQUESTED BY: The Successor Agency to the Former Vernon Redevelopment Agency WHEN RECORDED MAIL TO: City of Vernon City Administration Offi ces Attention: Mr. Alex Kung Economic Development Manager 4305 Santa Fe Avenue Vernon, CA 90058 Assessor Parcel No: 6304-030-906 (Space Above For Recorder's Use) GOVERNMENTAL.USE RESTRICTED GRANT DEED [Former Vernon Redevelopment Agency real property disposition to City of Vemon for governmental-use for Fire Station No. 4, Department of Transportation expansion of California InterstateTT0, any combination of both, or pursuant to any governmental-use authorized under that certain Long-Range Property Management Plan transmitted and approved by the California Department of Finance per AB X1 26, as amended by AB 1484, including but not limited to California Health & Safety Code section 34191.5(b); government-use restriction contained herein sunsets seven (7) years from date of recordation of this Govemmental-Use Restricted Grant Deed and the restriction is removed from the property at that time if the government-use of Fire Station No. 4, Department of Transportation expansion of Interstate 710, or any combination of both do not impact the property described herein] (4528 Bandini Boulevard, Vernon, CA 90058) State of California ) County of Los Angeles ) THIS GOVERNMENTAL-USE RESTRICTED GRANT DEED is made this 30th day of September, 2014 by the SUCCESSOR AGENCY FOR THE FORMER VERNON REDEVELOPMENT AGENCY, a public body designated under California Health & Safety Code sections34173 acting on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF VERNON, a dissolved public body, corporate and politic ("Grantor"), to the CITY OF VERNON (the "Grantee"). 4528 Bandini -l-[Govemmenlal-Use Restricted Grant Deed l0l0l4] WHEREAS, Grantor holds legal title to an undivided interest in that certain real property located in the City of Vernon, County of Los Angeles, State of California, more particularly described as follows: Those portions of Lots 9l and 1 l0 of Tract 1, in the Rancho Laguna, so called as shown on map designated at Exhibit "A", Case No. 8-25296 of the Superior Courts, said map being filed as Clerk's Filed Map 880, in the County Clerk of said County, more particularly described as follows: Beginning at a point in the Easterly prolongation of the center line of Bandini Boulevard, as described in deed to said County of Los Angeles, recorded in Book 3860 Page 214, Ofhcial Records, in the office of the county recorder of said county, distant along said Easterly prolongation North 67" 57' 49" West, 53.32 feet from the intersection of said Easterly prolongation with the center line of Atlantic Boulevard, formerly Pasadena Avenue, as described in deed to said County of Los Angeles, recorded in Book 864 Page 317 of said Official Records; thence along said Easterly prolongation and said center line of Bandini Boulevard, North 67o 57' 49" West, 846.68 feet; thence at right angles, South 22" 02' 1 1" West, a distance of 132.00 feet; thence South 2o Ol' 43" West, a distance of 72.37 feet to a point on a line parallel with and distant 200.00 feet Southerly, measured at right angles, from said center line of Bandini Boulevard, said point being the true point of beginning of this description; thence along said parallel line, North 67" 57'49" West, a distance of 99.76 feet; thence North 22" 02' 11" East, a distance of 150.00 feet to a line parallel with and distant 50.00 feet Southerly, measured at right angles, from said center line of Bandini Boulevard; thence along said last mentioned parallel line, North 67" 57'49" West, a distance of 100.00 feet; thence South 22" 02' 11" West, at right angles and parallel with the course above-described as having a length of 132.00 feet, a distance of 275.00 feet to a line parallel with and distant 325.00 feet Southerly, measured at right angles, from said center line of Bandini Boulevard; thence along said last mentioned parallel line, South 67" 57' 49" East, a distance of 245.28 feet to the intersection thereof with the Southerly prolongation of that certain course hereinabove described as having a length of 72.37 feet; thence along said Southerly prolongation, North 2o 07' 43" East, a distance of 133.03 feet to said true point of beginning. EXCEPT therefrom all oil, gas, naphtha and other hydrocarbon substances in, under or that may be produced from said land, as excepted in deed to the State of Califomia, recorded July 19, 1951, in Book 36797 Page 164 of said Official Records. APN: 6304-030-906 WHEREAS, Grantor desires to convey to Grantee in fee simple all of its right, title and interest in and to the aforesaid parcels of real property (the "Real Property") subject to the conditions, limitations, and requirements of this instrument, the redevelopment dissolution statutes, AB Xl 26, as amended by AB 1484 ("Dissolution Statutes"), and that certain long- range property management plan submitted to and approved by the Department of Finance under the Dissolution Statutes (the "Plan"). 4528 Bandini -2-[Govemmental-Use Restricted Grant Deed I 0l0l 4] WHEREAS, the Real Property was acquired pursuant to that certain Corporation Grant Deed dated January 7, l99l and recorded in the Official Records of the Los Angeles County Recorder on February 20,1991as Instrument No. 9l-241951. WHEREAS, the Grantor is charged with implementing the Dissolution Statutes and Plan under the direction of the Oversight Board to the Successor Agency of the Former Vernon Redevelopment Agency ("Oversight Board"); in connection thereto, the Grantor has proposed the Real Property be retained for governmental-use under the terms of the Dissolution Statutes and Plan. WHEREAS, the Grantor is currently leasing the Real Property to a third party and using net proceeds, if any, to service the Real Property for the continued use as undeveloped land subject to future disposition. The service of the Real Property includes, but is not limited to, obligations under the lease, insurance, and related landlord costs and expenses. The lease with the third party, Austin Trucking, Inc., is contained within Exhibit B of the Plan, and incorporated herein by this reference (the "Interim Lease"). The Plan and Interim Lease are public records on file with the Office of the Secretary of the Grantor and the California Department of Finance. WHEREAS, the Grantor and the Oversight Board are subject to the Dissolution Statutes and shortly after satisfaction of the Plan, the Grantor and Oversight Board are to be dissolved in the regular course upon satisfaction of the Dissolution Statutes. WHEREAS, the Real Property was acquired for a public use of a fire station expansion but the expansion did not move forward because, among other things, the higher public use by the State of California for the expansion of the abutting Interstate 710 intervened and created a cloud of uncertainty as to the future disposition of the Real Property. Therefore, the use of the Real Property as leased unimproved land continued and the obligations to service and maintain the Real Property are currently undertaken by the Grantor with the consent of the Oversight Board. WHEREAS, at the time of making this Governmental-Use Restricted Grant Deed, it is presently unknown to the Grantor and its Oversight Board the extent to which two governmental entities will be using the Real Property for governmental-use. Grantor, its Oversight Board, and the Grantee do agree that at the time of making this Governmental-Use Restricted Grant Deed the obligations of the Interim Lease, or such other interim lease on similar or better terms, are expected to continue on the Real Property until the Real Property is to be devoted to govemmental-use and net proceeds, if any, are to be devoted to the maintenance of the Real Property and obligations under the enforceable obligation under the Interim Lease, or such other obligations imposed by an interim use on similar or more favorable terms. WHEREAS, the governmental-use restriction is to restrict the Real Property for a period of seven (7) years from the date of the recordation of this Governmental-Use Restricted Grant Deed with the Office of the Los Angeles County Recorder ("Official Records"). The restriction limits the use of the Real Property to the Interim Lease, or such other interim lease on similar or better terms for unimproved land, and to such governmental-use established by the following two government entities or such combination of governmental-uses on the Real Property established 4528 Bandini -3-[Govemmental-Use Restricted Grant Deed I 01014] by the following two governmental entities. The first governmental entity is the Grantee, which currently operates its Fire Station No. 4 in land abutting the Real Property. The second governmental entity is the State of California, operating through its Department of Transportation ("Caltrans") in connection with the proposed expansion of California Interstate 710-the interstate abutting the Real Property. Caltrans has identified the Grantor's Fire Station No. 4 as property to be condemned for the aforesaid Caltrans project. An environmental impact report prepared by Caltrans sets out further details of the Interstate 710 expansion and excerpts are contained in Exhibit B of the Plan. In connection with the pending Caltrans condemnation, Grantee is likely to move forward with continued operation of Fire Station No. 4, however, at this time, it is unknown the extent and feasibility for the Grantee's govemmental-use for a fire station on the Real Property. This uncertainty is caused by, among other things, the extent of land from the Real Property to be actually condemned by Caltrans for aforesaid project. Lastly, in connection with its duties under the Dissolution Statutes, the Grantor proposed altemate govemment uses, including redevelopment, if the governmental-use in connection with Fire Station No. 4, or similar fire station on the Real Property, or the Caltrans project, or any combination of both, do not move forward within seven (7) years from the date of recordation of this Govemmental-Use Restricted Grant Deed in the Official Records. At the time of making this grant deed, alternate uses seems highly unlikely but are nonetheless included and contemplated herein as a reservation in favor of the Grantee in the event the aforesaid governmental-uses by the Grantee or Caltrans do not commence within seven (7) years of the recordation date of this Governmental-Use Restricted Grant Deed in the Official Records. If upon the passage of seven (7) years following the date of recordation of this Governmental-Use Restricted Grant Deed, Caltrans does not condemn Fire Station No. 4 which is adjacent to the Real Property, Grantee may record a notice of removal of governmental-use restrictions on the Real Property thereby removing all restrictions contained in this grant deed, thereby removing all restrictions herein forever. Notwithstanding the foregoing, the Grantee agrees it accepts all liabilities in connection with the Interim Lease, and may negotiate similar or better terms for the interim occupancy of the Real Property for a period of not less than seven (7) years from the date of recordation of this Governmental-Use Restricted Grant Deed in the Official Records. During this seven (7) year period the Grantor and its Oversight Board intend to implement the Dissolution Statutes and Plan and consider Grantee's covenant herein as part of the Plan. As part of the Dissolution Statutes and Plan, Grantor is obligated to continue to honor the Interim Lease as an enforceable obligation concerning the Real Property until such other uses are authorized; therefore, upon acceptance of this Governmental-Use Restricted Grant Deed, Grantee would be accepting the Real Property with the necessity to continue to honor the existing enforceable obligation concerning the Interim Lease, and may enter into such other interim lease on similar or better terms on the Real Property until such uses by the Grantee and/or Caltrans arise within the seven (7) year period following the date of recordation of this Governmental-Use Restricted Grant Deed in the Offrcial Records. The governmental-uses in this paragraph, including the Interim Lease, or such similar or better interim lease, are hereinafter collectively referred to as the "Governmental Use." WHEREAS, in order to implement the Dissolution Statutes and Plan given the uncertainties as to which entity will engage in the Govemmental Use, the Grantor proposes to convey the Real Property to the Grantee with the restrictions herein, including the limited use of the Real Property for the Govemmental Use. In connection therewith, the Grantee proposes to 4528 Bandini -4-[Govemmental-Use Restricted Granl Deed I 0 I 0l 4] accept the Real Property from the Grantor subject to the restriction and limitation on use of the Real Property for the Governmental Use so long as Grantee may assume all rights, obligations, and interests of the Grantor. The Oversight Board, in implementing the Dissolution Statutes and Plan, further instructs the Grantor to give this grant deed to Grantee so long as Grantee agrees to accept the terms of this grant deed from the Grantor along with the covenants, conditions and restrictions along with equitable servitudes running with the land imposed upon the Real Property by the Governmental Use as conveyed by this grant deed' WHEREAS, at the September 30,2014 public meeting of the Oversight Board, directions were made to the staff of the Grantor to move forward with the disposition of the Real Property pursuant to this grant deed, the Dissolution Statutes and Plan. In response to this request, the brantor has commenced circulation of this grant deed for recordation in conformance with the Plan. NOW THEREFORE, for the Grantee's acceptance of the obligations herein as consideration, the receipt and sufficiency of which are hereby acknowledged by Grantor, the Grantor does hereby grant, bargain, sell and convey unto the Grantee in fee simple the Real Property with all and singular the ways, easements, rights, privileges and appurtenance thereto or in any way appertaining, all improvements thereon and all the estate, right, title, interest and claim, either at law or in equity, of the Grantor as to Grantor's entire undivided interest in the said Real Property subject to the Governmental Use. Grantor and Grantee agree and confirm the restrictions and limitations of the Governmental Use burden, restrict, and limit the use of the Real Property for a period of seven (7) years following the recordation date of this Governmental-Use Restricted Grant Deed in the Official Records; furthermore, the burdens, restrictions, and limitations may be removed by the Grantee at anytime following the passage of seven (7) years following the recordation date of this Govemmental-Use Restricted Grant Deed by recordation of a notice of passage of restriction period, or like release of construction covenants concerning the Governmental Use, in the Official Records whereby the burdens, restrictions, and limitations of the Governmental Use are removed forever from the Real Property and no longer burden, restrict, or limit the Real Property. [THE REMAINDER OF THIS PAGE IS BLANK] 4528 Bandini -5-[Govemmental-Use Restricted Grant Deed I 0l 0 l4] IN WITNESS WHEREOF, Grantor has caused this grant deed to be executed by its representative thereunto duly authorized by the Oversight Board as of the day and year first above written. Grantee executed this grant deed and confirms acceptance of the terms hereinabove by signing this grant deed in the space provided hereinbelow. ..GRANTOR" REDEVELOPMENT AGENCY OF THE CITY OF VERNON, a dissolved public entity under AB Xl 26, as amended by AB 1484 By: SUCCESSOR AGENCY TO THE FORMER VERNON REDEVELOPMENT AGENCY, a public entity designated under Health & Safety Code section34173 By: W. Michael McCormick Chairperson APPROVED AS TO FORM AND LEGALITY: By: Ana Barcia, Secretary 4528 Bandini -6- KANE, BALLMER & BERKMAN Special Counsel to Grantor IGovemmental-Use Restricted Grant Deed I 0 I 01 4] The authorized representative of the Grantee executes this grant deed and the obligations imposed upon Grantee as of the date shown above. ..GRANTEE" CITY OF VERNON By: W. Michael McCormick, Mayor APPROVED AS TO FORM AND LEGALITY: HEMA PATEL City Attorney By: APPROVED AS TO FORM AND LEGALITY: Ana Barcia, City Clerk 4528 Bandini -7- AT' By: KANE, BALLMER & BERKMAN Special Counsel to Grantee [Govemmental-Use Restricted Granl Deed l0l0l4] Grantee Acceptance The terms in this grant deed and the acceptance of the interest in Real Property conveyed by this grant dated from the Grantor are hereby accepted by the Grantee. ..GRANTEE" CITY OF VERNON W. Michael McCormick Mayor 4528 Bandini -8- [Govemmental-Use Restricted Grant Deed l0l0l4] Acknowledgement State of California County of Los Angeles On before me,, a Notary Public, personally appeared W. MICHAEL McCORMICK, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) State of California County of Los Angeles On before me,, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in hislher authorized capacity, and that by hislher signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ) ) ) ) ) ) Signature (Seal)