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HomeMy WebLinkAbout2012-001 SASUCCESSOR AGENCY RESOLUTION NO. 2012 -001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY ADOPTING AND APPROVING THE SUCCESSOR AGENCY'S PROPOSED ADMINISTRATIVE BUDGET PURSUANT TO HEALTH AND SAFETY CODE SECTION 341770), AND AUTHORIZING THE SUCCESSOR AGENCY TO ENTER INTO AN AGREEMENT WITH THE CITY OF SANTA ANA FOR REIMBURSEMENT OF FINANCIAL, ADMINISTRATIVE AND OPERATIONAL SERVICES PURSUANT TO HEALTH AND SAFETY CODE SECTION 34171; AND MAKING OTHER FINDINGS IN CONNECTION THEREWITH BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, hereby finds, determines and declares as follows: A. The Community Redevelopment Agency of the City of Santa Ana ( "Agency ") was established as a redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq. ( "CRL "), and previously authorized to transact business and exercise powers of a redevelopment agency pursuant to action of the City Council of the City of Santa Ana ( "City "). B. Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which laws cause the dissolution and wind down of all redevelopment agencies ( "Dissolution Act "). 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 were dissolved as of and on February 1, 2012 under the dates in the Dissolution Act that were reformed and extended thereby ( "Supreme Court Decision "). D. The Agency is now a dissolved redevelopment agency pursuant to the Dissolution Act. E. By a resolution considered and approved by the City Council at an open public meeting the City chose to become and serve as the "Successor Agency" to the dissolved Agency under the Dissolution Act. The Housing Authority was designated the "Successor Housing Agency ", at said meeting as well. Resolution No. 2012 -001 Page 1 of 4 F. As of and on and after February 1, 2012, the City serves and acts as the "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 the review and approval by a seven - member oversight board ( "Oversight Board "). G. Health and Safety Code Section 341770), as modified by the Supreme Court decision, requires the Successor Agency to prepare a proposed administrative budget covering the period from February 1, 2012 through June 30, 2012 and submit it to the Oversight Board for approval. H. Pursuant to Section 341770), the Successor Agency's "Administrative Budget" is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the up- coming six month fiscal period; (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the City serving as Successor Agency. I. Pursuant to Section 34180(h) the Successor Agency may request authorization from the Oversight Board for the Successor Agency and the City of Santa Ana to enter into an agreement to ensure provision of the necessary services from the City to support Successor Agency responsibilities in winding down the activities of the former community redevelopment agency, including the estimated costs set forth in the Administrative Budget. J. The Successor Agency desires to enter into that certain "Cooperative Agreement Between the City of Santa Ana and the City Acting as the Successor Agency for the Former Community Redevelopment Agency" ( "Cooperative Agreement "), which agreement will authorize the reimbursement of costs incurred by the City to support Successor Agency operations and obligations. K. Pursuant to the Dissolution Act, the actions of the Oversight Board, including those approved by this Resolution, do not become effective for three (3) business days pending any request for review by the Department of Finance ( "DOF "), and if the DOF requests review hereof, DOF will have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight Board for reconsideration and the action, if subject to review by DOF, will not be effective until approved by DOF. L. 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. NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY: Resolution No. 2012 -001 Page 2 of 4 Section 2. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part. of this Resolution. Section 3. Pursuant to the Dissolution Act, the Successor Agency approves the proposed Administrative Budget, attached hereto as Attachment No. 1 and incorporated by this reference. Such approval is conditional upon approval of the Oversight Board. Section 4. Pursuant to the Dissolution Act, the Successor Agency is authorized to enter into the Cooperative Agreement with the City substantially in the form of the Agreement attached hereto as Attachment No. 2 and incorporated by this reference. Such approval is conditional upon approval of the Oversight Board. Section 5. Upon authorization of the Oversight Board, the Successor Agency shall transmit the Administrative Budget to the County Auditor - Controller. Section 6. The Clerk of the Council shall certify the adoption of this Resolution. Resolution No. 2012 -001 Page 3 of 4 ADOPTED this 2nd day of April 2012. APPROVED AS TO FORM: Joseph Straka, Interim City Attorney By: 4�..e� -� Lisa E. Storck Assistant City Attorney YES NOES ABSTAIN Miguel A. Pulido ` U Mayor Councilmembers: Alvarez, Benavides, Bustamante, Martinez, Tinaiero, Sarmiento (6) Councilmembers Councilmembers: NOT PRESENT: Councilmembers: None (0) None (0) Pulido (1) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2012 -001 to be the original resolution adopted by the City Council in its role as the Successor Agency on April 2, 2012. Date: q —16 l Resolution No. 2012 -001 Page 4 of 4 0 Maria D. Huizar, Clerk of the 8ouncil Attachment 1 CITY OF SANTA ANA, ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PROPOSED ADMINISTRATIVE BUDGET FOR FEBRUARY 1, 2012 - JUNE 30, 2012 Staff Support (EOPS, ROPS, Admin Budget, Records Management, etc.) ' $ 642,000 Brown Act requirements (agendas, minutes, etc.) 46,500 Supplies, printing, telephones, misc. items 17,000 Consultants (legal, financial, etc.) 121,000 Subtotal $ 826,500 Staff Support (research, reporting, etc.) 1 $ 36,500 Brown Act requirements (agendas, minutes, etc.) 18,000 Supplies, printing, misc. items 3,000 Subtotal $ 57,500 Training and Transportation $ 7,300 Delivery Charges 1,550 Building Rental 55,000 Rental City Equipment 9,850 Computer Services Charge 7,100 IS Strategic Plan 95,000 Insurance Charges 93,000 Subtotal $ 268,800 Indirect Costs 1 $ 97,200 Subtotall $ 97,200 TOTAL ESTIMATED AMOUNT $ 1,250,000 The estimated amount of the Administrative Budget for the five month period covering February through June 2012 is to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund. 1 Includes salaries, wages, and all fringe benefits offered by the City to employees. COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE CITY OF SANTA ANA ACTING AS THE SUCCESSOR AGENCY FOR THE FORMER COMMUNITY REDEVELOPMENT AGENCY FOR FINANCIAL, ADMINISTRATIVE, AND OPERATING SERVICES THIS COOPERATIVE AGREEMENT made and entered into this day of April 2012, by and between the City of Santa Ana, a charter city and municipal corporation, organized and existing under the laws of the State of California, hereinafter referred to as "City," and the City of Santa Ana acting as the successor agency for the former Community Redevelopment Agency of the City of Santa Ana, hereinafter referred to as "Successor Agency." RECITALS: A. The Community Redevelopment Agency of the City of Santa Ana ( "Agency ") was established as a community redevelopment agency that was previously organized and existing under the California 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 of the City. B. The Housing Authority of the City of Santa Ana 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 Sections 34200, et seq. C. Assembly Bill XI 26 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 in California ( "Dissolution Act "). D. On December 29, 2011, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in the State of California were dissolved effective February 1, 2012. E. By resolution considered and approved by the City Council at an open public meeting on January 9, 2012, the City chose to become and serve as the "Successor Agency" to the dissolved Agency under the Dissolution Act, and chose for its Housing Authority to become the "Successor Housing Agency ". All of the assets, properties, contracts, leases and records of the former Agency (except for most affordable housing assets) were automatically transferred by operation of law to the City acting as Successor Agency. F. As of 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 Attachment 2 1 obligations of the Agency and otherwise unwind the Agency's affairs, all subject to the review and approval by a seven member Oversight Board formed thereunder. City as Successor Agency is engaged in activities necessary and appropriate to winding down the activities of the former Agency's Merged Project Area consisting of six (6) project areas that were originally adopted and amended by ordinances of the City Council. G. Employees of the City will perform day -to -day administration and operation of the Successor Agency's duties and functions. Since the 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 administrative, accounting, auditing, planning, purchasing, engineering, legal, risk management, financial, clerical, record keeping, and other services necessary for the Successor Agency to carry out its responsibilities. H. The City and Successor Agency desire to affirm and document an on -going cooperative arrangement regarding administrative, financial, and operational services and payment for services and goods by entering into a new contract whereby City agrees to provide operational and administrative services and Successor Agency agrees to pay City for the cost of said services to be provided by City for Successor Agency in an amount equal to the Successor Agency Administrative Budget prepared pursuant to Health and Safety Code Section 34177 0) and program and project expenses defined hereinbelow for each six -month fiscal period under the term of this Agreement, and approved by the Oversight Board. 1. The parties agree and acknowledge that this Agreement is subject to Oversight Board review and approval and that the Oversight Board's actions shall not become effective for three business days, pending any request for review by the California Department of Finance ( "DOF "). If DOF requests review of the Board action, it shall have ten days from the date of its request to approve the Board action or return it to the Board for reconsideration, and the action, if subject to review by DOF, shall not be effective until approved by DOF. NOW THEREFORE, for and in consideration of their mutual covenants and promises, hereinafter set forth, and subject to the terms, conditions and other provisions of this Agreement hereinafter set forth, the parties hereto do hereby agree as follows: 1. Reimbursement of Administrative Expenses. The Successor Agency shall be liable to the City for the payment of its Administrative Expenses as set forth in this Agreement and as adopted as part of an Administrative Budget by the Successor Agency, as approved by the Oversight Board, as such Administrative Budget may be amended, revised or reconciled from time to time. These Administrative Expenses shall be in addition to any direct program or project expenses ( "Project Expenses ") incurred and noted on the Enforceable Obligations Payment Schedule ( "EOPS ") and in the Recognized Obligation Payment Schedule ( "ROPS "), including salary and benefits of employees, and any contracts for goods and services funded by the Successor Agency for Project Expenses. The Successor Agency shall also be liable to the City for payment of these Project Expenses where they are adopted as part of the EOPS or ROPS. Attachment 2 2 2. Services to be Provided. City agrees to continue to aid and cooperate in the planning, undertaking, construction and operation of remaining enforceable obligations of the Successor Agency previously incurred by the former Agency within the City, provided the cost of such services are paid by Successor Agency. At the request of Successor Agency through the City Manager and duly authorized designees, City and its officers and employees shall perform services for Successor Agency in carrying out its work related to meeting the former Agency's enforceable obligations and for winding down the activities of the former Agency and shall have the access to any and all personnel, equipment, necessary and applicable contracts and consultant agreements, goods and the facilities of the departments and offices of the City. Those City officers and employees who are also performing work with or related to the Successor Agency shall perform services for each agency in a dual capacity. The City Manager, and other appropriate City officials on behalf of the City, and the Executive Director of the former Agency, and other appropriate Successor Agency staff on behalf of the Successor Agency, and their duly authorized designees shall determine and establish the procedures to be followed in requesting and rendering such services. The costs of administrative services shall be considered Administrative Expenses in the Administrative Budget. The costs of other Successor Agency Project Expenses which are supported by City services are identified in line items on the EOPS or ROPS and not part of the estimated Administrative Expenses identified in Section 1. 3. Meeting Facilities. City agrees to make available to Successor Agency which office space and meeting space as is necessary for conducting meetings and the business of such agency, including use of the City Council Chambers, City Hall and appropriate conference room(s) for open public meetings, closed session meetings, and study session meetings of the Successor Agency and Oversight Board, and meetings of Successor Agency staff, counsel, consultants, and other representatives. Each entity shall use such space in accordance with the rules and regulations of the City as applicable to other buildings and offices of the City. 4. Succeeding Years during Term of Agreement. The procedure set forth herein shall be undertaken by Successor Agency, the Oversight Board, and City for each successive six -month fiscal period during the term of this Agreement based on each approved Administrative Budget and ROPS prepared pursuant to the Dissolution Act. 5. City Cost Allocation Plan; Estimated Cost of Administrative Services and Facilities. Expenses shall be calculated in the manner set forth in the City's cost allocation plan, or other applicable reasonable cost allocation and accounting plan approved by the parties that conforms with generally accepted accounting principles and that is generally applicable to all users of services and facilities of the City. The specific costs to be allocated herein shall be based upon the cost of the following categories of services: 5.1 Wage and Benefits Successor Agency. Wage and Benefit expenses incurred in connection with City employees described to perform administrative services or certain work for Successor Agency associated with "Project Expenses" (related to enforceable obligations), include salaries, wage and fringe benefit administration (including, but not limited to, medical and Attachment 2 3 life insurance, retirement system, vacation and sick leave provisions). The Successor Agency shall follow the City's Personnel Policy and labor contracts, rules and regulations, including procedures affecting conflict of interest, use of funds and procedures on hiring and firing. The costs attributable to employees who devote less than 100% of their time to the Successor Agency shall be allocated in accordance with the City's costs allocation plan. 5.2 General Overhead. A general indirect administrative operating expense and overhead support charge which shall be determined in accordance with the City's cost allocation plan and Successor Agency's Administrative Budget. 5.3 Specific Services. All expenses that City may actually incur in providing specific administrative services on behalf of Successor Agency include, but are not limited to: audit services, lease of space to accommodate Successor Agency's activities, City Treasurer service, property insurance for Successor Agency's properties, contracts for real estate, data and information, records, department supplies and equipment, mail and postage services, equipment maintenance and IT support. Operational services which relate to specific program and projects, including but not limited to project management, legal services, engineering design, real estate services, construction management, planning, contract costs, contract administration, inspection, surveys shall not be considered administrative services but direct specific program and project expenditures ( "Project Expenses "). 6. Provisions Severable. If any provision of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable. The City Council and Successor Agency each hereby declare that it would have approved this Agreement irrespective of the invalidity of any particular portion thereof. 7. Effective Date of Agreement. This Agreement shall become effective as of the first day noted above and shall continue thereafter until modified or terminated by the parties hereto. This Agreement is subject to Oversight Board review. 8. Miscellaneous Provisions. A. Brown Act. The Successor Agency meetings are noticed, open and public as required by the Ralph M. Brown Act (Government Code section 54950, et seq., as amended). B. Public Records Act. The Successor Agency complies with the Public Records Act (Government Code section 6250, et. seq, as amended) and unless a records clearly falls within an exception, such records are made available to the public in compliance with the City's policies and procedures. Attachment 2 4 C. Political Reform Act. The Successor Agency board members comply with the conflict of interest rules promulgated by the Political Reform Act in conformity with State law[Government Code Section 87300, as amended]. D. CEQA Guidelines. The Successor Agency shall follow City policies and procedures with regard to CEQA. E. Governing This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed and construed in accordance with the laws of the State of California. F. Amendment. This Agreement may be amended as the parties hereto may mutually agree by an instrument in writing executed by the parties hereto. G. Newspaper of General Circulation. The Successor Agency shall follow City policies and procedures as to designation of the newspaper of general circulation which will be used when the Successor Agency is required to give notice regarding matters within the community (Government Code Section 6040, as amended). H. Review of Bond Document Covenants. The Successor Agency has established a routine audit and control procedure that ensures that the Successor Agency's ongoing activities comply with the bond document covenants. Attachment 2 5 IN WITNESS WHEREOF, the parties hereto have executed this Cooperative Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: Joseph Straka Interim City Attorney /General Counsel By: Lisa E. Storck Assistant City Attorney /Asst. Counsel CITY OF SANTA ANA By: Paul Walters Interim City Manager CITY AS SUCCESSOR AGENCY By: Paul Walters Interim City Manager RECOMMENDED FOR APPROVAL: By: Nancy T. Edwards Interim Executive Director Community Development Agency Attachment 2 6