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HomeMy WebLinkAbout55A - RESOLUTION - LOCAL AGENCY INVESTMENT FUNDREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 30, 2012 TITLE: CLERK OF COUNCIL USE ONLY: RESOLUTION AUTHORIZING THE CITY OF SANTA ANA AS SUCCESSOR AGENCY FOR THE FORMER COMMUNITY REDEVELOPMENT AGENCY TO INVEST IN THE LOCAL AGENCY INVESTMENT FUND CITY MANAGER RECOMMENDED ACTION APPROVED ? As Recommended ? As Amended ? Ordinance on 1s1 Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a Resolution authorizing the City of Santa Ana, as Successor Agency for the former Community Redevelopment Agency of the City of Santa Ana, to deposit and withdrawal money in the State Treasury's Local Agency Investment Fund. DISCUSSION In 1991, Resolution 91-07 was passed, authorizing the Community Redevelopment Agency of Santa Ana (CRA) to participate in the Local Agency Investment Fund (LAIF) of the State Treasury. The CRA account with LAIF is an investment option that provides for above average interest returns while providing for same-day liquidity of funds. Recent Supreme Court's decision provides for the dissolution and winding down of RDAs effective February 1St, On January 9th, the City Council designated the City of Santa Ana as the successor agency to administer the dissolution of the CRA. LAIF is requesting updated information to allow for the disposition of funds on deposit in the CRA account after February 1 st FISCAL IMPACT There is no fiscal impact associated with this action. Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibit: 1. Resolution 55A-1 55A-2 1-26-12 LES RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AS THE SUCCESSOR AGENCY FOR THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CITY TREASURER TO REMIT AND MANAGE FUNDS WITH THE STATE TREASURERS LOCAL AGENCY INVESTMENT FUND FOR THE PURPOSE OF INVESTMENT OF THE FORMER AGENCY FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of the City of Santa Ana conclusively finds, determines and declares as follows: A. Section 16429.1 et seq of the Government Code created the Local Agency Investment Fund in the State Treasury and requires the governing body's consent to the remitting of funds by the Treasurer for investment into the Local Agency Investment Fund for investment. B. The California Supreme Court's decision in the recent California Redevelopment Agency v. Matosantos case upheld ABX1 26 which will now control the dissolution and winding down of every California redevelopment agency. ABX1 26 prohibits agencies from taking numerous actions, requires all agencies to wind down their affairs effective immediately, and provides that agencies are deemed to be dissolved as of February 1, 2012. C. The Community Redevelopment Agency of the City of Santa Ana ("Agency") previously consented to the remittance of money by the Treasurer to the Local Agency Investment Fund for the purpose of investment by Resolution No. 91-07, attached hereto and incorporated herein as Exhibit A. D. The City of Santa Ana declared by Resolution No. 2012-002, a copy of which is attached hereto and incorporated herein as Exhibit B, that it will assume the role of the Successor Agency for the dissolved Agency and will administer the dissolution of the Agency, including the disposition of all assets, properties, contracts, leases, records, buildings and equipment of the former Agency. E. The City of Santa Ana, as the Successor Agency for the Redevelopment Agency, hereby consents to the remittance of money by the Treasurer to the Local Agency Investment Fund for the purpose of investment of the former Agency funds. 55A-3 1-26-12 LES Section 2. The City of Santa Ana has elected to act as the Successor Agency for the former Agency. Section 3. The City of Santa Ana assumes the account of the former Redevelopment Agency. Section 4. The title of said investment account and all correspondence pertaining to such account shall be sent to the City of Santa Ana, as Successor Agency for the dissolved Community Redevelopment Agency of the City of Santa Ana, and directed as follows: City of Santa Ana 20 Civic Center Plaza, M-13 Santa Ana, CA 92702 Attn: Treasurer Section 5. The City of Santa Ana agrees to deposit or withdraw money in the State Treasurer's Investment Pool in accordance with the provisions of Section 16429.1 et seq of the Government Code for the purpose of investment as stated therein. Section 6. The City of Santa Ana, as the Successor Agency for the Community Redevelopment Agency, authorizes the Treasurer or her/his designee to order the deposit or withdrawal of money in the State Treasurers' Investment Pool. Section 7. Adoption of this Resolution by the City of Santa Ana shall be deemed the consent required by Section 16429.1 of the Government Code for the deposit of money in the Local Agency Investment Fund for the account of the former Community Redevelopment Agency of the City of Santa Ana. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 30th day of January, 2012. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph Straka Interim City Attorney By: Lisa E. Storck Assistant City Attorney 55A-4 1-26-12 LES AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2012- to be the original resolution adopted by the City Council of the City of Santa Ana on January 30, 2012. Date: Clerk of Council City of Santa Ana 55A-5 55A-6 RESOLUTION NO. 91-07 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE TREASURER TO REMIT FUNDS TO THE STATE TREASURERS LOCAL AGENCY INVESTMENT FUND FOR THE PURPOSE OF INVESTMENT BY THE AGENCY WHEREAS, Sections 16429,1 et seq of the Government Code created the Local Agency Investment Fund in the State Treasury; and WHEREAS, said Section 16429.1 of the Government code requires the governing body's consent for the remitting of funds by the Treasurer to the State Treasurer for investment into the Local Agency Investment Fund; and WHEREAS, the Community Redevelopment Agency of the City of Santa Ana consents to the remittance of money by the Treasurer to the Local Agency Investment Fund for the purpose of investment. NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS: 1. That the Community Redevelopment Agency of the City of Santa Ana hereby authorizes the establishment of an investment account by the State Treasurer and consents to the remittance of money to the State Treasurer for deposit in the Local Agency Investment Fund; and 2. That the title of said investment account and all correspondence to the Community Redevelopment Agency of the City of Santa Ana concerning the same shall be directed as follows: Community Redevelopment Agency of the City of Santa Ana Attention: Treasurer M-13 20 Civic Center Plaza Santa Ana, CA 92702 BE IT FURTHER RESOLVED that the Community Redevelopment Agency of the City of Santa Ana agrees to deposit or withdraw money in the State Treasurer's Investment Pool in accordance with the provisions of Section 16429.1 et seq of the Government Code for the purpose of investment as stated therein. BE IT FURTHER RESOLVED that the Community Redevelopment Agency of the City of Santa Ana authorizes the Treasurer or his designee to order the deposit or withdrawal of money in the State Treasurer's Investment Pool. BE IT FURTHER RESOLVED that adoption of the Resolution by the Community Redevelopment Agency of the city of Santa Ana shall be deemed the consent required by Section 16429.1 of the Government code for the deposit of money in the Local Agency Investment Fund for the account of the Community Redevelopment Agency of the City of Santa Ana. ADOPTED this 16th day of July , 1991, by the following vote: AYES : MEMBERS : ACOSTA, MCGUIGAN, NORTON, PULIDO, RICHIMSON NOES: MEMBERS: ABSENT: MEMBERS: GRISET, YOUNG ATTEST: Cynthia J..Ndlson Executive Director Daniel . Y ung chairman APPROVED AS TO FORM: Edward J. oo er Agency Legal Counsel ?F iiRliil 1rl ()d TILE liI IiM (IM!,!" i C? TfIE ORIGiMAI or4 [ILE M _ ATTESt: el- ?J I Py 60= 2 55A-8 1-4-12 LES REVISED RESOLUTION NO. 2012-002 A' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DESIGNATING THE CITY OF SANTA ANA AS THE SUCCESSOR AGENCY FOR THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO HEALTH AND SAFETY CODE SECTION 34173 AND DESIGNATING THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AS THE SUCCESSOR HOUSING AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of the City of Santa Ana conclusively finds, determines and declares as follows: A. The California Supreme Court's decision in the recent California Redevelopment Agency V. Matosantos case upheld AB1X 26 which will now control the. dissolution and winding down of every California redevelopment agency, and declared unconstitutional AB1X 27 which would have enabled agencies to remain in operation as long as they made specified annual payments to the state. B. Pursuant to section 34173 of the California Health & Safety Code, the City may elect to serve as the Successor Agency for the former Community Redevelopment Agency of the City of Santa Ana ("Agency"). The Successor Agency will administer the dissolution of the Agency, including the disposition of all assets, properties, contracts, leases, records, buildings and equipment of the former Agency. C. Pursuant to section 34176 of the California Health & Safety Code, the City may elect to assume the housing assets and functions previously performed by the Agency or may select the local housing authority that is in the territorial jurisdiction of the former Agency. Thus, the City can select the Housing Authority of the City of Santa Ana to receive the housing assets of the Agency and to perform housing functions (including all rights, powers, duties and obligations) previously performed by the Agency. D. Health and Safety Code Section 34173(e) provides that "the liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency." Thus, the City's obligations as Successor Agency are limited by the amount of property taxes and the value of assets it receives in its role as the Successor Agency. - E. By taking on the housing functions of the former Agency, the Housing Authority may incur obligations relating to the development and/or monitoring of Resolution No. 2012-002 Page 1 of 3 affordable housing units; however, the Housing Authority is also expected to receive certain housing assets of the Agency. The law is unclear as to the full extent of the obligations that may be imposed on the Housing Authority, acting as the Housing Successor Agency, and the character of the assets that will be transferred to the Housing Authority in such role. F. Section 34179 of the California Health & Safety Code describes the oversight board that shall be created on or before May 1, 2012. The City shall proceed to work with the County and other entities to fill the required positions on said board. Section 2. The City of Santa Ana hereby elects to act as the Successor Agency for the former Agency. Section 3. The City of Santa Ana hereby selects the Housing Authority of the City of Santa Ana to assume the housing assets and functions previously performed by the Agency and to act as the Successor Housing Agency for the former Agency. Section 4. The Council hereby directs City staff to work with the County and other entities to establish the oversight board in accordance with Section 34179 of the California Health & Safety Code. Section 5. The City Manager is hereby authorized and directed to take such other and further actions, and sign such other and further documents, as are necessary and proper in order to implement this Resolution on behalf of the City. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2012-002 Page 2 of 3 55A-10 1-9-12 LES REVISED ADOPTED this 9" day of January, 2012. Mayor APPROVED AS TO FORM: Joseph Straka Interim City Attorney F Lisa E. Storck Assistant City Attorney YES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Bustamante, Martinez. Pulido, Sarmiento (4) None (0) None (0) Alvarez, Benavides, Tinaiero (3) CERTIFICATION OF ATTESTATION AND ORIGINALITY 1, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2012-002 to be the original resolution adopted by the City Council of the City of Santa Ana on January 9, 2012. f i Z Date: 2- ?WAIVIZ .1D. Clerk of Council City of Santa Ana Resolution No. 2012-002 Page 3 of 3 55A-11 55A-12