SUCCESSOR AGENCYAGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/
SUCCfISOR AGENCY OPERATIONS LOAN ("Agreement") is made and entered into
as of I�qy o4 , 2012 by and among the CITY OF SAN JUAN CAPISTRANO, a
California umcipal corporation ("City"), and the CITY OF SAN JUAN CAPISTRANO
ACTING AS SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency")
RECITALS
A. The San Juan Capistrano 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, at 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. Assembly Bill (AB)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, California Redevelopment Association v.
Matosantos, Case No. 5194861, 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.
D. On January 11, 2012, the City Council adopted Resolution No. 12-01-10-
01 at an open public meeting choosing to become and serve as the "Successor Agency"
to the dissolved Agency under the Dissolution Act.
E. As of and on and after February 1, 2012, the City serves as the
"Successor Agency" and is performing 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 the seven -
member Oversight Board.
F. On January 17, 2012, the City Council adopted Resolution No. 12 -01 -17 -
pursuant to California Health and Safety Code Section 34176 of the Dissolution Act,
declining to assume the housing assets and functions of the Agency and selected the
San Juan Capistrano Housing Authority to so assume such housing assets and
functions, and on such date also pursuant to Section 34176 the 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, any assets assigned and transferred by operation of
law and to be assigned and transferred by authorization of and direction from the
oversight board when formed and operating pursuant to the Dissolution Act to the
Successor Housing Agency are not adequate to fund administrative support costs and
expenses unless any future Low and Moderate Income Housing fund balances are
authorized to be transferred under State Law to the Successor Housing Agency. If this
occurs, a future modification to this Agreement may be necessary.
G. City, acting as Successor Agency, is engaged in activities necessary and
appropriate to winding down the activities of the Agency's Community Development
Central Project Area ("Central Project Area") that was originally adopted and amended
by ordinances of the City Council.
H. Employees of the City will perform day-to-day administration and
operation of the Successor Agency's duties and functions. Since the San Juan
Capistrano Community Redevelopment Agency was originally formed and upon
Successor Agency's effectiveness as of February 1, 2012, 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, record-keeping, and other services necessary for the
Successor Agency to carry out its responsibilities.
I. City and Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and
payment for services by entering into a new contract whereby City agrees to provide
administrative and operational services and Successor Agency agrees to pay City for
the cost of all such services to be provided by City for Successor Agency.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants
and conditions herein contained, the parties hereto agree as follows:
1. Reimbursement of Administrative Expenses and Enforceable
Obligation 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
by the Successor Agency as part of an Administrative Budget pursuant to Health &
Safety Code Section 341770) and approved by the Oversight Board, as such annual
Administrative Budget may be amended, revised or reconciled from time to time. In
addition, the Successor Agency shall be liable to the City for any program or operational
expenses associated with Enforceable Obligations, as that term is defined in the
Dissolution Act as set forth in each Recognized Obligation Payment Schedule
("ROPS"), including salary and benefits of employees.
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2. Cost of Administrative Expenses and Administrative Cost Allowance
from February 1, 2012 through June 30, 2012.
2.1 Successor Agency and City estimate that the cost of Administrative
Expenses to be provided by City to the Successor Agency for the period of February 1,
2012 through June 30, 2012, is Two Hundred Twelve Eight Hundred Forty Seven
Dollars ($212,847), which is itemized in the Successor Agency's Administrative Budget
approved by action of the Oversight Board. Pursuant to the provisions of Section 4
herein, Successor Agency agrees to pay the sum of $212,847 to City to pay for the
estimated Administrative Expenses of the Successor Agency for the period February 1,
2012, through June 30, 2012, and for subsequent fiscal years, subject to Oversight
Board approval and Successor Agency preparation and approval of an Administrative
Budget estimate for such services and costs pursuant to the Dissolution Act.
2.2. Information and supporting data regarding the staffing and
allocation of costs have been prepared by Successor Agency and City staff and are
made a part hereof by this reference. Within thirty (30) days of the expiration of the
each calendar quarter during the term of this Agreement, the parties shall determine the
actual costs incurred by Successor Agency for services provided to the City and the
Successor Agency shall reimburse the City for these costs within thirty (30) days of this
determination. For the period of February 1, 2012, through March 31, 2012, these
amounts shall be reimbursed within thirty (30) days of the approval of this agreement.
Within thirty (30) days of the expiration of Fiscal Year 2011-12 and each fiscal year
thereafter during the term of this Agreement, the parties shall determine the actual costs
incurred by Successor Agency for services provided to the City. If the actual amount
incurred by Successor Agency is less than the estimated amount, City shall reimburse
Successor Agency in the amount overpaid within 30 days of such notice, and if the
actual amount incurred by Successor Agency is greater than the estimated amount, any
additional amount above the estimated amount shall be due and payable by Successor
Agency from the Redevelopment Obligation Retirement Fund and the additional amount
shall be advanced to Successor Agency by City.
3. Services to be Provided. City agrees to continue to aid and cooperate
and shall aid and cooperate in the planning, undertaking, construction and operation of
remaining enforceable obligations of the Successor Agency previously incurred by the
Agency as it relates to Enforceable Obligations of the 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, the City and its
officers and employees shall perform services for Successor Agency in carrying out its
work related to meeting the Agency's Enforceable Obligations and for winding down the
activities of the Agency and shall have access to any and all personnel and the facilities
of the departments and offices of the City. Those City officers and employees who are
also appointed to positions or offices with or related to the Successor Agency shall
perform services for the each agency in a dual capacity. The City Manager, and other
appropriate City officials on behalf of the City and the Successor Agency, and 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
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considered Administrative Expenses in the Annual Administrative Budget. The costs of
other Enforceable Obligation where supported by City services are identified as specific
line items on the EOPS or ROPS and not part of the estimated Administrative Expenses
identified in Section 1.
4. Meeting Facilities. City agrees to make available to Successor Agency
such office space and meeting space as is necessary for conducting meetings and the
business of such agency, including use of the City Council Chambers 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 agency
shall use such space in accordance with the rules and regulations of the City as
applicable to other buildings and offices of the City.
5. Succeeding Years during Term of Agreement. The procedure set forth
above in Sections 2, 3 and 4 shall be undertaken by Successor Agency, the Oversight
Board, and City for each successive six-month period and for each fiscal year during the
term of this Agreement based on each approved Administrative Budget and ROPS
prepared pursuant to the Dissolution Act.
6. City Cost Allocation Plan; Estimated Cost of Services and Facilities.
Expenses shall be calculated in the manner set forth in 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.
6.1 Wages and Benefits Successor Agency. Wage and Benefit
expenses incurred in connection with City employees described to perform
administrative services work for Successor Agency. 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 cost allocation plan.
6.2 General Overhead. A general indirect administrative operating
expenses and overhead support charge which shall be determined in accordance with
the City's cost allocation plan and Successor Agency Annual Administrative Budget.
6.3 Specific Services. All expenses that City may actually incur in
providing specific administrative services on behalf of Successor Agency including, but
not limited to, audit services, lease of space to accommodate Successor Agency's
activities, City Treasurer services, property insurance for Successor Agency's
properties, contracts for real estate data and information, department supplies, mail and
postage services, equipment maintenance and IT support.
7. Annual Expenses Deemed City Advance. For each year in which
Successor Agency does not have adequate funds to pay and reimburse for
Administrative Expenses and/or Enforceable Obligation Expenses, each such amount
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shall be deemed an advance by City to Successor Agency and such amount shall be
deemed to have been loaned by City to Successor Agency ("City/Successor Agency
Operations Loan").
8. Repayment of Operations Loan. Successor Agency agrees to repay the
City/Successor Agency Operations Loan (and all future advances thereto) from (former)
tax increment funds allocated to Successor Agency that are to be paid from property tax
revenues deposited in the Redevelopment Property Tax Trust Fund pursuant to
California Health and Safety Code Section 34177(k) and other applicable laws.
Successor Agency shall repay to City the principal amount of the City/Successor
Agency Operations Loan on or before the last date that Successor Agency may receive
tax increment funds pursuant to the time and financial limitations required to meet all
enforceable obligations of the Successor Agency and subject to the Dissolution Act and
other applicable laws.
9. 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 declares that it would
have approved this Agreement irrespective of the invalidity of any particular portion
hereof.
10. Effective Date of Agreement. This Agreement shall become effective as
of the date in the first paragraph hereof and shall continue thereafter until modified or
terminated by the parties hereto.
11. Subordination Indebtedness. The indebtedness of the City/Successor
Agency Operations Loan under this Agreement shall be junior and subordinate to other
allocated moneys made from the Redevelopment Property Tax Trust Fund including
those pursuant to California Health and Safety Code Section 34183(a)(1) and (2).
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IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
CITY OF SAN JUAN CAPISTRANO, a
California Municipal Corporation
APPROVED AS TO FORM
Larry K�r, !�nf�eJr, Mayor
Dated: f`1fi q "Z 201
[Signatures continue on next page]
[Signatures continued from previous page]
CITY OF SAN JUAN CAPISTRANO ACTING
AND SERVING AS THE SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
Larry Krar�fer, Mayor
Dated: "x-D—
city geNon behalf of the Successor Agency
Dated:
APPROVED AST RM–_
Tom Clark, Stradlin , Y cca, Carlson, and Rauth
Special Counsel to Succ ssor Agency
Dated: Zo12
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OVERSIGHT BOARD RESOLUTION NO. 12-05-02-01
A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR
AGENCY OF THE SAN JUAN CAPISTRANO REDEVELOPMENT
AGENCY, APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE
BUDGET FROM FEBRUARY 1, 2012 TO JUNE 30, 2012, PURSUANT TO
HEALTH AND SAFETY CODE SECTION 341770) AND AUTHORIZING
THE SUCCESSOR AGENCY TO ENTER INTO AN AGREEMENT WITH
THE CITY OF SAN JUAN CAPISTRANO FOR ADMINISTRATIVE
SUPPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION
34171.
WHEREAS, the San Juan Capistrano Community Redevelopment Agency
("Agency`) was established as a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code
Section 33000, et seq. ("CRL"), and has been authorized to transact business and
exercise the power of a redevelopment agency pursuant to action of the City Council
("City Council') of the City of San Juan Capistrano ("City"); and
WHEREAS, Assembly Bili X1 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 (the "Dissolution Act); and
WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to
the Dissolution Act and
WHEREAS, by Resolution No. 12-01-10-01 approved by the City Council at an
open meeting on January 10, 2012, the City chose to become and serve as the
successor agency to the dissolved Agency under the Dissolution Act; and
WHEREAS, 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 all 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") and;
WHEREAS, pursuant to Health and Safety Code Section 34179 the Successor
Agency's Oversight Board has been formed and the initial meeting has occurred on
April 9, 2012; and
WHEREAS, Section 34179 provides that the Oversight Board has fiduciary
responsibilities to holders of enforceable obligations and the taxing entities that benefit
from distributions of property tax and other revenues pursuant to Section 34188 of Part
1.85 of the Dissolution Act; and
5/2/2012
WHEREAS, Health and Safety Code Section 341770) 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; and
WHEREAS, 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 upcoming 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 as
Successor Agency; and
WHEREAS, the Successor Agency's proposed Administrative Budget has been
submitted to the Oversight Board for its review and approval; and
WHEREAS, the Administrative Budget, as approved by the Oversight Board, will
be provided to the County of Orange Auditor -Controller pursuant to Health and Safety
Code Section 34177(k) so that the Successor Agency's estimated administrative costs
in the approved Administrative Budget will be paid from property tax revenues deposited
Into the Redevelopment Property Tax Trust Fund for the upcoming six-month period;
and
WHEREAS, pursuant to Section 34180(h) the Successor Agency may request
authorization from the Oversight Board for the Successor Agency and the City of San
Juan Capistrano 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 Agency, including the estimated costs set forth in the
Administrative Budget; and
WHEREAS, the Successor Agency desires to enter into that certain "Agreement
for Reimbursement of Costs and City/Suooessor Agency Operations Loan" ("Costs
Reimbursement Agreement% which agreement will authorize the reimbursement of
costs incurred by the City to support Successor Agency operations and obligations; and
WHEREAS, the Oversight Board desires to approve the Successor Agency's
proposed Administrative Budget and to authorize the Successor Agency to enter into
the "Costs Reimbursement Agreement"; and
WHEREAS, 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 State Department of Finance
(DOF), and If the DOF requests review hereof, DOF will have 10 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 DOF, will not be effective until
approved by DOF.
NOW THEREFORE, BE IT RESOLVED, that the Oversight Board to the
Successor Agency of the San Juan Capistrano Community Redevelopment Agency,
does hereby resolve as follows:
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Section 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 341770), the Oversight Board approves the
Successor Agency's proposed Administrative Budget, attached hereto as Exhibit A and
incorporated by this reference.
Section 3. Pursuant to the Dissolution Act, the Oversight Board authorizes the
Successor Agency to enter into the Cost Reimbursement Agreement substantially in the
form of the Agreement for Reimbursement of Costs and City/Successor Agency
Operations Loan, attached hereto as Exhibit B and incorporated by this reference.
Section 4. The Oversight Board authorizes the Successor Agency to transmit the
Administrative Budget and Cost Reimbursement Agreement, when approved and
entered into between the Successor Agency and the City, to the County of Orange
Auditor -Controller, the California State Department of Finance, and the State
Controller's Office.
Section 5. The City Manager or her authorized designees are directed to post the
Administrative Budget and Cost Reimbursement Agreement (when entered into) on the
City/Successor Agency website.
Section 6. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED and ADOPTED this 2"d day of May 2012.
Laura Freese, Chair
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, appointed Oversight Board Secretary of the Oversight Board to the
Successor Agency of the San Juan Capistrano Community Redevelopment Agency, do hereby
certify that the foregoing Oversight Resolution 12-05-02-01 was duly adopted by the Board
Members of the Oversight Board to the Successor Agency of the San Juan Capistrano
Community Redevelopment Agency at a special meeting thereof, held the 2nd day of May, 2012,
by the following vote:
AYES:ARD MEMBERS: Doll, Hampton, McCord, Tatarian, Thomas, Kerr and Chair Freese
NOES 4ARD
ARD MEMBERS: None
ABSENT: MEMBERS: None
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Expenditure Category
Description
Amount
Salaries and benefits
Successor Agency share of City employee's salaries and benefits
$106,154
Facility charges
Successor Agency share of City's overhead costs for office space
19,476
Vehicle fleet charges
Successor Agency share of Citys overhead costs for vehicles
6,457
Insurance charges
Successor Agency share of Ci s overhead costs for insurance
26,284
IT/communication charges
Successor Agency share of Citys overhead costs for computers
and phones
19,956
Malenals and supplies
Successor Agency share of various supplies
292
Utilities
Successor Agency share of electricity, as and water costs
1,592
Training
Participation by the CFO and Accounting Manager at the
Successor Agency training in March 2012 sponsored by the
California Redevelopment Association (includes mileage
reimbursement)
662
Sub -total - Administrative Allowance (1)(2)
$180,873
Lena] services 3
Contract for legal services
31,975
Total Administrative Expenses
$212,848
(1) For Fiscal Year 2011-12, the City, as the Successor Agency, is entitled to receive up to 5% of the portion of
its former tax increment payable, but not less than $250,000, to meet the administrative expenses of serving as
the Successor Agency.
(2) Administrative costs for salaries and benefits and overhead costs are identified on Page 5, Lines 6 and 7 of
the Successor Agency's Recognized Obligation Payment Schedule (ROPS).
(3) Legal services are identified on Page 5, Lines 14 and 15 of the Successor Agency's ROPS as separate
enforceable obligations.
EXHIBIT A
AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/
SUCC SSOR AGENCY OPERATIONS LOAN ("Agreement") is made and entered into
as of , 2012 by and among the CITY OF SAN JUAN CAPISTRANO, a
California
nlcipal corporation rCity"), and the CITY OF SAN JUAN CAPISTRANO
ACTING -AS SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency")
RECITALS
A. The San Juan Capistrano Community Redevelopment Agency rAgency")
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. ("CRU), 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. Assembly Bill (AB)X1 26 added Parts 1.8 and 1.85 to Division 24 of the
California Health S Safety Code, which laws cause the dissolution and wind down of all
redevelopment agencies ("Dissolution Act°).
C. On December 29, 2011, California Redevelopment Association v.
Matosentos, 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.
D. On January 11, 2012, the City Council adopted Resolution No. 12-01-10-
01 at an open public meeting choosing to become and serve as the "Successor Agency"
to the dissolved Agency under the Dissolution Act.
E. As of and on and after February 1, 2012, the City serves as the
"Successor Agency" and is performing 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 the seven -
member Oversight Board.
F. On January 17, 2012, the City Council adopted Resolution No. 12 -01 -17 -
pursuant to California Health and Safety Code Section 34176 of the Dissolution Act,
declining to assume the housing assets and functions of the Agency and selected the
San Juan Capistrano Housing Authority to so assume such housing assets and
functions, and on such date also pursuant to Section 34176 the 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, any assets assigned and transferred by operation of
Exhibit B
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law and to be assigned and transferred by authorization of and direction from the
oversight board when formed and operating pursuant to the Dissolution Act to the
Successor Housing Agency are not adequate to fund administrative support costs and
expenses unless any future Low and Moderate Income Housing fund balances are
authorized to be transferred under State Law to the Successor Housing Agency. If this
occurs, a future modification to this Agreement may be necessary.
G. City, acting as Successor Agency, is engaged In activities necessary and
appropriate to winding down the activities of the Agency's Community Development
Central Project Area ("Central Project Area") that was originally adopted and amended
by ordinances of the City Council.
H. Employees of the City will perform day 4o -day administration and
operation of the Successor Agency's duties and functions. Since the San Juan
Capistrano Community Redevelopment Agency was originally formed and upon
Successor Agency's effectiveness as of February 1, 2012, 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, record-keeping, and other services necessary for the
Successor Agenoy to carry out its responsibilities.
1. City and Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and
payment for services by entering Into a new contract whereby City agrees to provide
admInistrativer and operational services and Successor Agency agrees to pay City for
the cost of all such services to be provided by City for Successor Agency.
NOW, THEREFORE, for and In consideration of the mutual promises, covenants
and conditions herein contained, the parties hereto agree as follows:
1. Reimbursement of Administrative Expenses and Enforceable
ObilnaHon 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
by the Successor Agency as part of an Administrative Budget pursuant to Health &
Safety Code Section 341770) and approved by the Oversight Board, as such annual
Administrative Budget may be amended, revised or reconciled from time to time. In
addition, the Successor Agency shall be liable to the City for any program or operational
expenses associated with Enforceable Obligations, as that term is defined In the
Dlssolutlon Act as set forth In each Recognized Obligation Payment Schedule
CROPS"), Including salary and benefits of employees.*
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F;
2.1 Successor Agency and City estimate Bret the cost of Administrative
Expenses to be provided by City to the Successor Agency for the period of February 1,
2012 through June 30, 2012, is Two Hundred Twelve Eight Hundred Forty Seven
Dollars ($212,847), which Is Itemized In the Successor Agency's Administnative Budget
approved by action of the Oversight Board. Pursuant to the provisions of Section 4
herein, Successor Agency agrees to pay the sum of $212,847 to City to pay for the
estimated Administrative Expenses of the Successor Agency for the period February 1,
2012, through June 30, 2012, and for subsequent fiscal years, subject to Oversight
Board approval and Successor Agency preparation and approval of an Administrative
Budget estimate for such services and costs pursuant to the Dissolution Act.
2.2. Information and supporting data regarding the staflb►g and
allocation of costs have been prepared by Successor Agency and City staff and are
made a part hereof by this reference. Within thirty (30) days of the expiration of the
each calendar quarter during the terrn of this Agreement, the parties shall detemnmine the
actual costs Incurred by Successor Agency for services provided to the City and the
Successor Agency shall reimburse the City for these costs within thirty (30) days of this
determination. For the period of February 1, 2012, through March 319 2012, these
amounts shall be reimbursed within thirty (30) days of the approval of this agreement.
Within thirty (30) days of the expiration of Flscal Year 2011-12 and each fiscal year
thereafter during the term of this Agreement, the parties shalt determine the actual costs
Incurred by Successor Agency for services provided to the City. If the actual amount
Incurred by Successor Agency is less than the estimated amount, City shall reimburse
Successor Agency In the amount overpaid within 30 days of such notice, and If the
actual amount Incurred by Successor Agency is greater then the estimated amount, any
additional amount above the estimated amount shall be due and payable by Successor
Agency from the Redevelopment Obligation Retirement Fund and the additional amount
shall be advanced td Successor Agency by City.
3. Barvtcea to be Provided. City agrees to continue to aid and 000perate
and shall old and cooperate In the planning, undertaking, construction and operation of
remaining enf weabte obligailons of the Successor Agency previously incurred by the
Agency as it relates to Enforceable Obligations of the 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, the City and Its
oi3cers and employees shall perform services for Successor Agency in carrying out its
work related to meeting the Agency's Enfoiceable Obilgatlons and for winding down the
activities of the Agency and shall have access to any and all personnel and the facilities
of the departments and offices of the City. Those City oflfcers and employees who are
also appointed to positions or oMces with or related to the Successor Agency shall
perform services for the each agency in a dual capacity. The Clay Manager, and other
appropriate City officlats on behalf of the City and the Successot Agency, and 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 Annual Administrative Budget The costs of
other Enforceable Obligation where supported by City services are IdentMed as spedfic
One items on the EOPS or ROPS and not part of the estimated Administrative Expenses
Identified in Section 1.
4. Meeting Facilities. City agrees to make available to Successor Agency
such office space and meeting space as Is necessary for conducting meetings and the
business of such agency, Including use of the City Council Chambers 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 agency
shall use such space In accordance with the rules and regulations of the City as
applicable to other buildings and offices of the City.
S. Succeeding Years during Term of Agfeemen. The procedure set forth
above in Sections 2, 3 and 4 shall be undertaken by Successor Agency, the Oversight
Board, and City for each successive six-month period and for each fiscal year during the
tern of this Agreement based on each approved Administrative Budget and ROPS
prepared pursuant to the Dissolution Act
6. Ck C_ost Allocation Plan: ,Eatim ted Cost of Services and Facilities.
Expenses shall be calculated In the manner set forth in City's cost allocation plan, or
other -applicable reasonable cost allocation and accounting pian 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.
6.1 Wages and Oggga Successor Agency. Wage and Benefit
expenses Incurred In connection with City employees described to perform
administrative services work for Successor Agency. 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 cost allocation plan.
0.2 gongMI ,Overhead. A general Indirect administrative operating
expenses and overhead support charge which shall be determined in accordance with
the City's cost allocation plan and Successor Agency Annual Administrative Budget
8A Specific Bond= All expenses that City may actually incur In
providing specific administrative services on behalf of Successor Agency Induding, but
not limited to, audit services, lease of space to accommodate Suoceasor Agencies
activities, City Treasurer services, property insurance for Su or Agency's
properties, contracts for real estate data and information, department supplies, mall and
postage services, equipment maintenance and IT support.
7. Annual Expenses DeenM1Zd...ra& Advance. For each year in which
Successor Agency does not have adequate funds to pay and reimburse for
Administrative Expenses and/or Enforceable Obligation Expenses, each such amount
4
shall be deemed an advance by City to Successor Agency and such amount shall be
deemed to have been loaned by City to Successor Agency CCity/Successor Agency
Operations Loan').
8. Rogavment of Operations -Lown. Successor Agency agrees to repay the
Clty/Suaessor Agency Operations Loan (and all future advances thereto) from (former)
tax Increment funds allocated to Successor Agency that are to be paid from property tax
revenues deposited in the Redevelopment Property Tax Trust Fund pursuant to
California Health and Safety Code Section 34177(k) and other applicable laws.
Suocebsor Agency shall repay to City the principal amount of the City/Successor
Agency Opendlons Loan on or before the last date that Successor Agency may receive
tax Increment funds pursuant to the fime and financial limitations required to meet all
enforceable obligations of the Successor Agency and subject to the Dissolution Act and
other applicable laws.
9. 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 appllcation, and to this end the provisions of this Agreement are
severable. The City Council and Successor Agency each hereby declares that it would
have approved this Agreement irrespective of the Invalidity of any particular portion
hereof.
10. 99ha e D U of Aareement This Agreement shall become effective as
of the date in the first paragraph hereof and shall continue thereafter until mcdMed or
terminated by the parties hereto.
11. gub-ordination Indebtedness. The indebtedness of the City/Successor
Agency Operations Loan under this Agreement shall be junior and subordinate to other
allocated moneys made from the Redevelopment Property Tax -Trust Fund including
those pursuant to Callfomia Health and Safety Code Section 34183(e)(1) and (2).
P
U
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
CITY OF SAN JUAN CAPISTRANO, a
California Municipal Corporation
Larry Krani
Qr, ayor
M
Dated: a/
APPROVED AS TO FORM
[Signatures continue on next page]
6
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[Signatures continued from previous page]
CITY OF SAN JUAN CAPISTRANO ACTING
AND SERVING AS THE SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
Larry Krargdr, Mayor
Dated: _!`tati 2 L 0 1 a.
0,
Maki"orris; City CI on behalf of the Successor Agency
Dated: (�
APPROVED AS TO FORM
Tom Claris, Stradlin c a, Carlson, and Rauth
Special 'Co;74ta
nsel to sor Agency
Dated:Z.a2
7
RESOLUTION NO. SACRA 12-05-01-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO REDEVELOPMENT
AGENCY, APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE
BUDGET FROM FEBRUARY 1, 2012, TO JUNE 30, 2012 PURSUANT TO
HEALTH AND SAFETY CODE SECTION 341770) AND REQUEST TO
OVERSIGHT BOARD AUTHORIZING THE SUCCESSOR AGENCY TO
ENTER INTO AN AGREEMENT WITH THE CITY OF SAN JUAN
CAPISTRANO FOR ADMINISTRATIVE SUPPORT PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34171
WHEREAS, the San Juan Capistrano Community Redevelopment Agency
("Agency") was established as a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code
Section 33000, et seq. ("CRL"), and has been authorized to transact business and
exercise the power of a redevelopment agency pursuant to action of the City Council
("City Council") of the City of San Juan Capistrano ("City"); and
WHEREAS, Assembly Bill x1 28 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 (the "Dissolution Act's; and
WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to
the Dissolution Act; and
WHEREAS, by Resolution No. 12-01-10-01 approved by the City Council at an
open meeting on January 10, 2012, the City chose to become and serve as the
successor agency to the dissolved Agency under the Dissolution Act; and
WHEREAS, 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 all 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's and;
WHEREAS, Health and Safety Code Section 341770) requires the Successor
Agency to prepare a proposed Administrative Budget covering the period from February
1, 2012, through June 30, 2012; and
WHEREAS, 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 upcoming 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 as
Successor Agency; and
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WHEREAS, the Administrative Budget must be approved by the Oversight Board
pursuant to Health and Safety Code Section 341770); and
WHEREAS, upon the Oversight Board's approval of the Administrative Budget,
the Administrative Budget will be provided to the County of Orange Auditor -Controller
pursuant to Health and Safety Code Section 34177(k) so that the Successor Agency's
estimated administrative costs in the approved Administrative Budget will be paid from
property tax revenues deposited into the Redevelopment Property Tax Trust Fund for
the upcoming six-month period; and
WHEREAS, pursuant to Section 34180(h) the Successor Agency may request
authorization from the Oversight Board for the Successor Agency and the City of San
Juan Capistrano 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 Agency, including the estimated costs set forth in the
Administrative Budget; and
WHEREAS, the Successor Agency desires to enter into that certain "Agreement
for Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement', which agreement will authorize the reimbursement of
costs incurred by the City to support Successor Agency operations and obligations; and
WHEREAS, the City Council, on behalf of the City acting solely in its capacity as
Successor Agency to the Agency, has duly considered this Resolution and has
determined that the adoption of this Resolution is in the best interests of the City, in its
capacity as Successor Agency to the Agency, and the health, safety, and welfare of the
residents of the City, and in accord with the public purposes and provisions of
applicable state and local laws and requirements.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano, acting solely as the Successor Agency to the Community
Redevelopment Agency, does hereby resolve as follows:
Section 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 34177Q), the City Council, acting solely as a
Successor Agency to the Agency, hereby approves the Administrative Budget, attached
hereto as Exhibit A and incorporated by this reference.
Section 3. Pursuant to the Dissolution Act, the City Council, acting solely as a
Successor Agency to the Agency, hereby authorizes the Successor Agency to enter into
the Cost Reimbursement Agreement substantially in the form of the Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan, attached hereto
as Exhibit B and incorporated by this reference.
2
Section 4. The City Manager or her authorized designees are further authorized and
directed to submit the Successor Agency Administrative Budget and Cost
Reimbursement Agreement to the Oversight Board on behalf of the City.
Section 5. Upon approval by the Oversight Board, the City Council, acting solely as
a Successor Agency to the Agency, authorizes the Successor Agency to transmit the
Administrative Budget and Costs Reimbursement Agreement, when approved and
entered into between the Successor Agency and the City, to the County of Orange
Auditor -Controller, the California State Department of Finance, and the State
Controller's Office.
Section 6. Upon approval by the Oversight Board, the City Council, acting solely as
a Successor Agency to the Agency, the City Manager or her authorized designees are
directed to post the Administrative Budget and Costs Reimbursement Agreement (when
entered into) on the City/Successor Agency website.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 1 st day of May 2012.
CITY OF SAN JUAN CAPISTRANO, ACTING
SOLELY IN ITS CAPACITY AS A
3
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. SACRA 12-04-01-01 was duly adopted by the
City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the
1 t day of May 2012, by the following vote:
COUNCIL MEMBERS:
COUNCIL MEMBER:
COUNCIL MEMBER:
:se, Reeve,
e
e
4
Taylor, Allevato and Mayor Kramer
Expenditure Category
Description
Amount
Salaries and benefits
Successor Anency share of City employee's salaries and benefits
$106 154
Facility charges
Successor Agency share of City's overhead costs for offices ace
19,476
Vehicle fleet charges
Successor Agency share of Citys overhead costs for vehicles
6,457
Insurance charges
Successor Agency share of City's overhead costs for insurance
26,284
IT/communication charges
Successor Agency share of City's overhead costs for computers
and phones
19,956
Materials and supplies
Successor Agency share of various supplies
292
Utilities
Successor Agency share of electricity, gas, and comer costs
1.592
Training
Participation by the CFO and Accounting Manager at the
Successor Agency training in March 2012 sponsored by the
California Redevelopment Association (includes mileage
reimbursement)
662
Sub -total -Administrative Allowance (1)(2)
$180,873
Least services 3
Contract for legal services
31 975
Total Administrative Expenses
$212,648
(1) For Fiscal Year 2011-12, the City, as the Successor Agency, is entitled to receive up to 5% of the portion of
its former tax increment payable, but not less than $250,000, to meet the administrative expenses of serving as
the Successor Agency.
(2) Administrative costs for salaries and benefits and overhead costs are identified on Page 5, Lines 6 and 7 of
the Successor Agency's Recognized Obligation Payment Schedule (ROPS).
(3) Legal services are identified on Page 5, Lines 14 and 15 of the Successor Agency's ROPS as separate
enforceable obligations.
EXHIBIT A
AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITYISUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/
SUCC SSOR AGENCY OPERATIONS LOAN ("Agreement') is made and entered into
as of , 2012 by and among the CITY OF SAN JUAN CAPISTRANO, a
California nicipal corporation ("City"), and the CITY OF SAN JUAN CAPISTRANO
ACTING -AS SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency")
RECITALS
A. The San Juan Capistrano 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. Assembly Bill (AB)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 Acn.
C. On December 29, 2011, Cellfomis Redevelopment Association v.
Matosantos, Case No. S194861, the California Supreme Court upheld the DIssolution
Act and thereby all redevelopment agencies In Caiifomia are subject to the Dissolution
Act and were dissolved effective February 1, 2012.
D. On January 11, 2012, the City Council adopted Resolution No. 12-01-10-
01 at an open public meeting choosing to become and serve as the "Successor Agency"
to the dissolved Agency under the Dissolution Act.
E. As of and on and after February 1, 2012, the City serves as the
"Successor Agency" and Is performing 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 the seven -
member Oversight Board.
F. On January 17, 2012, the City Council adopted Resolution No. 12 -01 -17 -
pursuant to California Health and Safety Code Section 34176 of the Dissolution Act,
declining to assume the housing assets and functions of the Agency and selected the
San Juan Capistrano Housing Authority to so assume such housing assets and
functions, and on such date also pursuant to Section 34176 the 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, any assets assigned and transferred by operation of
Exhibit B
law and to be assigned and transferred by authorization of and direction from the
ovenright board when formed and operating pursuant to the Dissolution Act to the
Successor Housing Agency are not adequate to fund administrative support costs and
expenses unless any future Low and Moderate Income Housing fund balanus 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.
G. Clty, acting as Successor Agency, is engaged In activities necessary and
appropriate to winding down the activities of the Agency's Community Development
Central Project Area rCentral Project Area`) that was originally adopted and amended
by ordinances of the City Council.
H. Employees of the -City will perform dar4oday administration and
operation of the Successor Agency's duties and functions. Since the San Juan
Capistrano Community Redevelopment Agency was originally formed and upon
Successor Agency's effectiveness as of February 1, 2012, City has provided and shall
continue to provide services to* the Successor Agency, Including but not limited to
providing administrative, acooudUng, auditing, planning, engineering, legal, risk
management, financial, clerical, record-keeping, and other services necessary for the
Successor Agency to cavy out Its responsibilities.
t. City and Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and
payment for services by entering Into a new contract whereby City agrees to provide
administrativer and operational services and Successor Agency agrees to pay City for
the oast of all such services to be provided by City for Successor Agency.
NOW, THEREFORE, for and In consideration of the mutual promises, covenants
and conditions herein contained, the parties hereto agree as follows:
1. Retfnbursemant of . Admtnlsftdve Expenses and Enforceable
Qhftoatson Exuanses. The Successor Agency shall be Roble to the City for the
payment of Be Administrative Expenses as set forth in this Agreement and as adopted
by the Successor Agency as part of an Administrative Budget pursuant to Health &
Safety Code Section 341770) and approved by the Oversight Board, as such annual
Administrative Budget may be amended, revised or reconciled from time to time. In
addition, the Successor Agency shall be liable to the City for any program or operational
expanses assooleted with Enforceable Obligations, as that term Is defined In the
Dissolution Act as set forth in each Recognized Obligation Payment Schedule
CROPS°), Including salary and benefits of employees.
2
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2.1 Successor Agency and City estimate that the cost of Administrative
Expenses to be provided by City to the Successor Agency for the period of February 1,
2012 through June 300 2012, Is Two Hundred Twelve Eight Hundred Fogy Seven
Dollars ($212,847), which Is itembod In the Successor Agency's Administrative Budget
approved by action of the Oversight Board. Pursuant to the provisions of Section 4
herein, Successor Agency agrees to pay the sum of $212,847 to City to pay for the
estimated Administratin Expenses of the Successor Agency for the period February 1,
2012, through June 30, 2012, and for subsequent fiscal years, subject to Oversight
Board approval and Successor Agency preparation and approval of an Administrative
Budget estimate for such services and costa pursuant to the Dissolution Act.
2.2. Information and siVpordng data regarding the stafftrrg and
allocation of costs has been prepared by Successor Agency and City staff and are
made a part hereof by this reference. Within thirty (30) days of the expiration of the
each calendar quarter during the teen of this Agreement, the parties shall determine the
actual costs Incurred by Successor Agency fior services provided to the City and the
Successor Agency shall reimburse the City for these costs within thirty (30) days of this
detwminallon. For the period of February 1, 2012, through Manch 310 2012, these
amounts shall be reimbursed within thirty (30) days of the approval of this agreement.
1A1+'thln thirty (30) days of the expiration of Fiscal Year 201142 and each fiscal year
thereafter during the term of this Agreement, the parties shall determine the actual costs
Incurred by Successor Agency for services provided to the City. If the actual amount
Incurred by Successor Agency Is less than the estimated amount, City snap reimburse
Successor Agency in the amount overpaid within 30 days of such notice, and if the
actual amount incurred by Successor Agency Is greater than the estimated amount, any
additional amount above the estimated amount shall be due and payable by Successor
Agency from the Redevelopment Obligation Retirement Fund and the additional amount
shall be advanced t0 Successor Agency by City. -
3. Servlaea to be Provided. City agrees to continue to aid and cooperate
and shall aid and cooperate In the planning, undertaking, construction and operation of
remaining enforoeable obligations of the Successor Agency previously Incurred by the
Agency as it relates to Enfbmeable Obligations of the 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, the City and its
officers and employees shall perform services for Successor Agency in carrying out Its
work related to meeting the Agency's Enfor�oeable Obligations and for winding down the
activities of the Agency and shall have ato any and all personnel and the faclNes
of the departments and offices of the City. Those City officers and employees who are
also appointed to positions or offices with or related to the Successor Agency shag
perforin services for the each agency in a dust capacity. The City Manager, and other
appropriate City ottlolals on behalf of the City and the Successor Agency, and duly
authorized designees, shall determine.and establish the procedures to be followed In
requesting and rendering such services. The costs of adminlstradve services shall be
U
considered Administrative Expenses In the Annual Administrative Budget The costs of
other Enforceable Obligation where supported by City services are Identified as specific
line items on the EOPS or ROPS and not part of the estimated Administrative Expenses
Identified in Section 1.
4. Meeting Facilities. City agrees to make available to Successor Agency
such office space and meeting space as Is necessary for conducting meetings and the
business of such agency, including use of the City Council Chambers 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 agency
shall use such space In accordance with the rules and regulations of the City as
applicable to other buildings and of es, of the City.
8. Sucaeedina Years during Tann of Agreement. The procedure set forth
above In Sections 2.3 and 4 shall be undertaken by Successor Agency, the Oversight
Board, and City for each successive six-month period and for each fiscal year during the
tern of this Agreement based on each approved Administrative Budget and ROPS
prepared pursuant to the Dissolution Act
8. Ch Cost Allocation Plan: Estimated Cost of Services and Facilltiea.
Expenses shall be calculated In the manner set forth in City's cost allocation pian, 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 foollities of the City. The specific costs to be
allocated herein shall be based upon the oust of the following categorles•of services.
8.1 Wages and_RoMM Successor Agenay. Wage and Benefit
expenses Incurred in connection with, City employees described to perform
administrative services work for Successor Agency. 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 cost allocation plan.
8.2 Gang9j garhead. A general Indirect administrative operating
expenses and overhead support charge which shall be determined In accordance with
the City's cost allocation plan and Successor Agency Annual Administrative Budget
GA Sc=Mo ; rvicas. All expenses that City may actually Incur In
providing specific administrative services on behalf of Successor Agency Including, but
not limited to, audit services, lease of space to accommodate Successor Agency a
actWllles, City Treasurer services, property insurance for Successor Agency's
properties, contracts for real estate data and information. department supplies, mail and
postage services, equipment maintenance and IT support.
7. Annual Expenses Deemed City Advance. For each year in which
Successor Agency does not have adequate funds to pay and reimburse for
Administrative Expenses andlor Enforceable Obligation Expenses, each such amount
4
shall be deemed an advance by City to Successor Agency and such amount shall be
deemed to have been loaned by City to Successor Agency ('City/Successor Agency
Operations l oanj.
8. Ret MI Operations Loan. Successor Agency agrees to repay the
City/Successor Agency Operations Loan (and all future advances thereto) from (former)
tax Increment funds allocated to Successor Agency that are to be paid from property tax
revenues deposited In the Redevelopment Property Tax Trust Fund pursuant to
California Health and Safety Code Section 34177(k) and other applicable laws.
Suocebsor Agency shall repay to City the principal amount of the City/Successor
Agency Operations Loan on or before the last date that Successor Agency may receive
tax Increment funds pursuant to the time and financial limitations required to meet all
enforceable obligations of the Successor Agency and subject to the Dissolution Act and
other applicable taws.
9. 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 declares that It would
have approved this Agreement Irrespective of the Invalidity of any particular portion
hereof.
10. K#lgM Date of Agreement. This Agreement shall become effective as
of the date In the first paragraph hereof and shall continue thereafter until modified or
terminated by the parties hereto.
11. -Subordination Indebtedness. The Indebtedness of the City/Successor
Agency Operations Loan under this Agreement shall be junior and subordinate to other
allocated moneys made from the Redevelopment Property Tax-Trust Fund including
those pursuant to Cailfbmia Health and Safety Code Section 34183(x)(1) and (2).
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
CITY OF SAN JUAN CAPISTRANO, a
California Municipal Corporation
LarryK.rani
n Qr, ayor
M
Dated: D/
APPROVED AS TO FORM
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[Signatures continued from previous page]
CITY OF SAN JUAN CAPISTRANO ACTING
AND SERVING AS THE SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
Larry Krargdr, Mayor
Dated: Mg , L0 I a.
KIL
Mari orris, Cit1:Z00-a'
Cl
behaff of the Successor Agency
Dated:P
APPROVED AS TO FORM
Tom Clark, Stradlin c ca, Carlson, and Rauth
Special '
Consel to sor Agency
Dated:ZD 2
7
512/2012
AGENDA REPORT D1
TO: Oversight Board Members
FROM: Cindy Russell, Chief Financial Officer/City Treasurer
SUBJECT: Consideration of a Resolution Approving the Administrative Budget for the
Successor Agency to the San Juan Capistrano Community
Redevelopment Agency; and Authorization of an "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan"
Between the City and the Successor Agency.
RECOMMENDATION:
By motion, adopt a Resolution:
1) Approving the Successor Agency Administrative Budget for the period from
February 1, 2012 through June 30, 2012; and,
2) Authorizing the Successor Agency to enter into an "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement") with the City of San Juan Capistrano pursuant to
Code Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act for
reimbursement of costs incurred by the City to support Successor Agency
operations and responsibilities consistent with the Administrative Budget
proposed to be approved by the Successor Agency; and,
3) Authorizing the Successor Agency to transmit the Administrative Budget and
Cost Reimbursement Agreement, when approved and entered into, to the County
of Orange Auditor -Controller, State Department of Finance (DOF) and State
Controller's Office; and,
4) Authorizing the Successor Agency to post the Administrative Budget and Cost
Reimbursement Agreement on its website.
(Note that the above actions of the Oversight Board shall not become effective for three
business days, pending any request for review by the DOR If DOF requests review of the
above Board actions, it 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.)
SITUATION:
The California State Legislature enacted Assembly Bill X1 26 (the "Dissolution Act") to
dissolve redevelopment agencies formed under the Community Redevelopment Law.
The California Supreme Court in its decision in Califomia Redevelopment Association v.
Agenda Report
Page 2 May 2, 2012
Matosantos, issued December 29, 2011, (the "Supreme Court Decision"), declared the
Dissolution Act to be constitutional. Under the Dissolution Act, all California
redevelopment agencies were dissolved effective February 1, 2012, and various actions
are now required by successor agencies to unwind the affairs of all former
redevelopment agencies.
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. Pursuant to Section 341770), the Administrative Budget is to
include all of the following: (a) estimated amounts of the Successor Agency's
administrative costs for the upcoming six-month period (first period is February 1, 2012
to June 30, 2012, based on reformed dates); 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 to the Successor Agency.
For Fiscal Year 2011-2012, the City, as Successor Agency, is entitled to receive up to
5% of the portion of its former tax increment payable to meet the enforceable
obligations of the former redevelopment agency as shown on the Recognized
Obligation Payment Schedule and up to 3% of that amount each year after that, but not
less than $250,000 each year, to meet the administrative expenses of serving as the
Successor Agency. The proposed Successor Agency Administrative Budget is
prepared as Exhibit A to the Resolution (Attachment 1). Under Health and Safety Code
Section 34177(k), the Successor Agency will provide the County of Orange Auditor -
Controller the administrative cost estimates from the approved Administrative Budget
that are to be paid from property tax revenues deposited into the Redevelopment
Property Tax Trust Fund for the period February 1, 2012 to June 30, 2012.
Also subject to Oversight Board approval, pursuant to Health and Safety Code Section
34180(h), is any request by the Successor Agency to enter into an agreement with the
City of San Juan Capistrano. To ensure provision of the necessary services from the
City to support Successor Agency responsibilities in winding down the activities of the
former San Juan Capistrano Community Redevelopment Agency ("Agency") and under
the proposed Administrative Budget, it is necessary that the City and the Successor
Agency enter into an agreement for reimbursement of costs incurred by the City to
support Successor Agency operations and obligations. The Successor Agency
requests that the Oversight Board authorize the Successor Agency to enter into the
"Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan"
("Cost Reimbursement Agreement") with the City of San Juan Capistrano pursuant to
Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act.
This item is scheduled for consideration by the Successor Agency at its regular meeting
of May 1, 2012. Any additional information based on their action will be provided at the
Oversight Board meeting.
Agenda Report
Page 3 May 2, 2012
FINANCIAL CONSIDERATIONS:
Administrative costs associated with the Successor Agency wind down of Agency affairs
are estimated to be $180,873, excluding legal costs for the period from February 1,
2012, through June 30, 2012. Legal costs, totaling $31,975 are segregated from the
administrative costs and listed as a separate enforceable obligation on the City
Recognized Obligations Payment Schedule (ROPS). Although legal costs are listed
separately on the ROPS, they have been included on the Administrative Budget
schedule (Exhibit A to the Resolution) pending their approval as a separate obligation
by the California State Department of Finance (DOF). Total estimated administrative
and legal costs are $212,848.
The administrative allowance is limited to 5% of the tax increment for Fiscal Year
2011/12. This amount is calculated to be $386,807. For the five month period from
February 1, 2012 through June 30, 2012, the administrative allowance is calculated to
be $161,170 (5/12 X $386,807). Additionally, the City's redevelopment agency
administrative fund (Fund 04) has a fund balance of approximately $66,000 that is
available to cover any costs in excess of the administrative allowance and/or any legal
costs not approved as an enforceable obligation separate from the administrative
allowance through June 30, 2012. The amounts on deposit in this fund were received in
prior years from redevelopment agency tax increment.
For future fiscal years, the City's administrative allowance is limited to 3% of tax
increment or a minimum of $250,000. Based on tax increment projections, the
administrative allowance would be capped at $250,000.
NOTIFICATIONS:
None
RECOMMENDATION:
By motion, adopt a Resolution:
1) Approving the Successor Agency Administrative Budget for the period from
February 1, 2012 through June 30, 2012; and,
2) Authorizing the Successor Agency to enter into an "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement") with the City of San Juan Capistrano pursuant to
Code Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act for
reimbursement of costs incurred by the City to support Successor Agency
operations and responsibilities consistent with the Administrative Budget
proposed to be approved by the Successor Agency; and,
3) Authorizing the Successor Agency to transmit the Administrative Budget and
Cost Reimbursement Agreement, when approved and entered into, to the County
Agenda Report a �-
Page 4 May 2, 2012
of Orange Auditor -Controller, State Department of Finance (DOF) and State
Controller's Office; and,
4) Authorizing the Successor Agency to post the Administrative Budget and Cost
Reimbursement Agreement on its website.
(Note that the above actions of the Oversight Board shall not become effective for three
business days, pending any request for review by the DOF. If DOF requests review of the
above Board actions, it 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.)
Respectfully submitted,
Cindy Russell
Chief Financial Officer/City Treasurer
Prepared by,
Michelle Bannig�*
Accounting Manager
Attachment:
1. Resolution approving the Successor Agency Administrative Budget from
February 1, 2012 to June 30, 2012, (Exhibit A — Administrative Budget; and
Exhibit B - Agreement for Reimbursement of Costs and City/Successor Agency
Operations Loan)
OVERSIGHT BOARD RESOLUTION NO. 12 -05 -02 -XX
A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR
AGENCY OF THE SAN JUAN CAPISTRANO REDEVELOPMENT
AGENCY, APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE
BUDGET FROM FEBRUARY 1, 2012 TO JUNE 30, 2012, PURSUANT TO
HEALTH AND SAFETY CODE SECTION 341770) AND AUTHORIZING
THE SUCCESSOR AGENCY TO ENTER INTO AN AGREEMENT WITH
THE CITY OF SAN JUAN CAPISTRANO FOR ADMINISTRATIVE
SUPPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION
34171.
WHEREAS, the San Juan Capistrano Community Redevelopment Agency
("Agency") was established as a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code
Section 33000, et seq. ("CRL"), and has been authorized to transact business and
exercise the power of a redevelopment agency pursuant to action of the City Council
("City Council") of the City of San Juan Capistrano ("City"); and
WHEREAS, Assembly Bill X1 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 (the "Dissolution Act"); and
WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to
the Dissolution Act; and
WHEREAS, by Resolution No. 12-01-10-01 approved by the City Council at an
open meeting on January 10, 2012, the City chose to become and serve as the
successor agency to the dissolved Agency under the Dissolution Act; and
WHEREAS, 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 all 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") and;
WHEREAS, pursuant to Health and Safety Code Section 34179 the Successor
Agency's Oversight Board has been formed and the initial meeting has occurred on
April 9, 2012; and
WHEREAS, Section 34179 provides that the Oversight Board has fiduciary
responsibilities to holders of enforceable obligations and the taxing entities that benefit
from distributions of property tax and other revenues pursuant to Section 34188 of Part
1.85 of the Dissolution Act; and
ATTACHMENT 1
WHEREAS, Health and Safety Code Section 341770) 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; and
WHEREAS, 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 upcoming 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 as
Successor Agency; and
WHEREAS, the Successor Agency's proposed Administrative Budget has been
submitted to the Oversight Board for its review and approval; and
WHEREAS, the Administrative Budget, as approved by the Oversight Board, will
be provided to the County of Orange Auditor -Controller pursuant to Health and Safety
Code Section 34177(k) so that the Successor Agency's estimated administrative costs
in the approved Administrative Budget will be paid from property tax revenues deposited
into the Redevelopment Property Tax Trust Fund for the upcoming six-month period;
and
WHEREAS, pursuant to Section 34180(h) the Successor Agency may request
authorization from the Oversight Board for the Successor Agency and the City of San
Juan Capistrano 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 Agency, including the estimated costs set forth in the
Administrative Budget; and
WHEREAS, the Successor Agency desires to enter into that certain "Agreement
for Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement"), which agreement will authorize the reimbursement of
costs incurred by the City to support Successor Agency operations and obligations; and
WHEREAS, the Oversight Board desires to approve the Successor Agency's
proposed Administrative Budget and to authorize the Successor Agency to enter into
the "Costs Reimbursement Agreement"; and
WHEREAS, 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 -State Department of Finance
(DOF), and if the DOF requests review hereof, DOF will have 10 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 DOF, will not be effective until
approved by DOF.
NOW THEREFORE, BE IT RESOLVED, that the Oversight Board to the
Successor Agency of the San Juan Capistrano Community Redevelopment Agency,
does hereby resolve as follows:
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Section 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 341776), the Oversight Board approves the
Successor Agency's proposed Administrative Budget, attached hereto as Exhibit A and
incorporated by this reference.
Section 3. Pursuant to the Dissolution Act, the Oversight Board authorizes the
Successor Agency to enter into the Cost Reimbursement Agreement substantially in the
form of the Agreement for Reimbursement of Costs and City/Successor Agency
Operations Loan, attached hereto as Exhibit B and incorporated by this reference.
Section 4. The Oversight Board authorizes the Successor Agency to transmit the
Administrative Budget and Cost Reimbursement Agreement, when approved and
entered into between the Successor Agency and the City, to the County of Orange
Auditor -Controller, the California State Department of Finance, and the State
Controller's Office.
Section 6. The City Manager or her authorized designees are directed to post the
Administrative Budget and Cost Reimbursement Agreement (when entered into) on the
City/Successor Agency website.
Section 6. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED and ADOPTED this 2nd day of May 2012.
ATTEST:
Maria Moms, Oversight Board Secretary
Laura Freese, Chair
3
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
February 1 2012 tO June 30 2012
Expenditure Category
Description
Amount
Salaries and benefits
Successor Agency share of City employee's salaries and benefits
$106154
Facility charges
Successor Agency share of City's overhead costs for offices ace
19,476
Vehicle fleet charges
Successor Agency share of City's overhead costs for vehicles
6,457
Insurance cha es
Successor Agencv share of Ci s overhead costs for insurance
26,284
IT/communication cha es
Successor Agency share of City's overhead costs for computers
and phones
19,956
Materials and supplies
Successor Agency share of various supplies
292
Utilities
Successor Agency share of electricity, as and water costs
1,692
Training
Participation by the CFO and Accounting Manager at the
Successor Agency training in March 2012 sponsored by the
California Redevelopment Association (includes mileage
reimbursement)
662
Sub -total - Administrative Allowance (1)(2)
$180,873
Legal services 3
Contract for le al services
31.976
Total Administrative Expenses
$212,848
(1) For Fiscal Year 2011-12, the City, as the Successor Agency, is entitled to receive up to 5% of the portion of
its former tax increment payable, but not less than $250,000, to meet the administrative expenses of serving as
the Successor Agency.
(2) Administrative costs for salaries and benefits and overhead costs are identified on Page 5, Lines 6 and 7 of
the Successor Agency's Recognized Obligation Payment Schedule (ROPS).
(3) Legal services are identified on Page 5, Lines 14 and 15 of the Successor Agency's ROPS as separate
enforceable obligations.
EXHIBIT A
AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITYISUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/
SUCCESSOR AGENCY OPERATIONS LOAN ("Agreement") is made and entered into
as of , 2012, by and among the CITY OF SAN JUAN CAPISTRANO, a
California municipal corporation ("City"), and the CITY OF SAN JUAN CAPISTRANO
ACTING AS SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency")
RECITALS
A. The San Juan Capistrano 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. Assembly Bill (AB)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, Califomia Redevelopment Association v.
Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution
Act and thereby all redevelopment agencies in California are subject to the Dissolution
Act and were dissolved effective February 1, 2012.
D. On January 11, 2012, the City Council adopted Resolution No. 12-01-10-
01 at an open public meeting choosing to become and serve as the "Successor Agency"
to the dissolved Agency under the Dissolution Act.
E. As of and on and after February 1, 2012, the City serves as the
"Successor Agency" and is performing 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 the seven -
member Oversight Board.
F. On January 17, 2012, the City Council adopted Resolution No. 12 -01 -17 -
pursuant to California Health and Safety Code Section 34176 of the Dissolution Act,
declining to assume the housing assets and functions of the Agency and selected the
San Juan Capistrano Housing Authority to so assume such housing assets and
functions, and on such date also pursuant to Section 34176, the 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, any assets assigned and transferred by operation of
EXHIBIT "B"
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law and to be assigned and transferred by authorization of and direction from the
Oversight Board when formed and operating pursuant to the Dissolution Act to the
Successor Housing Agency are not adequate to fund administrative support costs and
expenses unless any future Low and Moderate Income Housing fund balances are
authorized to be transferred under State Law to the Successor Housing Agency. If this
occurs, a future modification to this Agreement may be necessary.
G. City, acting as Successor Agency, is engaged in activities necessary and
appropriate to winding down the activities of the Agency's Community Development
Central Project Area ("Central Project Area") that was originally adopted and amended
by ordinances of the City Council.
H. Employees of the City will perform day-to-day administration and
operation of the Successor Agency's duties and functions. Since the San Juan
Capistrano Community Redevelopment Agency was originally formed and upon
Successor Agency's effectiveness as of February 1, 2012, 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, record-keeping, and other services necessary for the
Successor Agency to cant' out its responsibilities.
I. City and Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and
payment for services by entering into a new contract whereby City agrees to provide
administrative and operational services and Successor Agency agrees to pay City for
the cost of all such services to be provided by City for Successor Agency.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants
and conditions herein contained, the parties hereto agree as follows:
1. Reimbursement of Administrative Expenses and Enforceable
Obligation 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
by the Successor Agency as part of an Administrative Budget pursuant to Health &
Safety Code Section 341770) and approved by the Oversight Board, as such annual
Administrative Budget may be amended, revised or reconciled from time to time. In
addition, the Successor Agency shall be liable to the City for any program or operational
expenses associated with Enforceable Obligations, as that term is defined in the
Dissolution Act as set forth in each Recognized Obligation Payment Schedule
("ROPS"), including salary and benefits of employees.
K
2. Cost of Administrative Expenses and Administrative Cost Allowance
from February 1. 2012 through June 30, 2012.
2.1 Successor Agency and City estimate that the cost of Administrative
Expenses to be provided by the City to the Successor Agency for the period of February
1, 2012 through June 30, 2012, is Two Hundred Twelve Eight Hundred Forty Eight
Dollars ($212,848), which is itemized in the Successor Agency's Administrative Budget
approved by action of the Oversight Board. Pursuant to the provisions of Section 4
herein, Successor Agency agrees to pay the sum of $212,848 to City to pay for the
estimated Administrative Expenses of the Successor Agency for the period February 1,
2012 through June 30, 2012, and for subsequent fiscal years, subject to Oversight
Board approval and Successor Agency preparation and approval of an Administrative
Budget estimate for such services and costs pursuant to the Dissolution Act.
2.2. Information and supporting data regarding the staffing and
allocation of costs have been prepared by Successor Agency and City staff and are
made a part hereof by this reference. Within thirty (30) days of the expiration of each
calendar quarter during the term of this Agreement, the parties shall determine the
actual costs incurred by Successor Agency for services provided to the City and the
Successor Agency shall reimburse the City for these costs within thirty (30) days of this
determination. For the period of February 1, 2012 through March 31, 2012, these
amounts shall be reimbursed within thirty (30) days of the approval of this agreement.
Within thirty (30) days of the expiration of Fiscal Year 2011-12 and each fiscal year
thereafter during the term of this Agreement, the parties shall determine the actual costs
incurred by Successor Agency for services provided to the City. If the actual amount
incurred by Successor Agency is less than the estimated amount, City shall reimburse
Successor Agency in the amount overpaid within 30 days of such notice, and if the
actual amount incurred by Successor Agency is greater than the estimated amount, any
additional amount above the estimated amount shall be due and payable by Successor
Agency from the Redevelopment Obligation Retirement Fund and the additional amount
shall be advanced to Successor Agency by City.
3. Services to be Provided. City agrees to continue to aid and cooperate
and shall aid and cooperate in the planning, undertaking, construction and operation of
remaining enforceable obligations of the Successor Agency previously incurred by the
Agency as it relates to Enforceable Obligations of the Agency within the City, provided
that the costs of such services are paid by Successor Agency. At the request of
Successor Agency through the City Manager and duly authorized designees, the City
and its officers and employees shall perform services for Successor Agency in carrying
out its work related to meeting the Agency's Enforceable Obligations and for winding
down the activities of the Agency and shall have access to any and all personnel and
the facilities of the departments and offices of the City. Those City officers and
employees who are also appointed to positions or offices 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 Successor
Agency, and duly authorized designees, shall determine and establish the procedures
to be followed in requesting and rendering such services. The costs of administrative
M
services shall be considered Administrative Expenses in the Annual Administrative
Budget. The costs of other Enforceable Obligations where supported by City services
are identified as speck line items on the EOPS or ROPS and not part of the estimated
Administrative Expenses identified in Section 1.
4. Meetina Facilities. City agrees to make available to Successor Agency
such office space and meeting space as is necessary for conducting meetings and the
business of such agency, including use of the City Council Chambers 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 agency
shall use such space in accordance with the rules and regulations of the City as
applicable to other buildings and offices of the City.
5. Succeeding Years during Term of Agreement. The procedure set forth
above in Sections 2, 3 and 4 shall be undertaken by Successor Agency, the Oversight
Board, and City for each successive six-month period and for each fiscal year during the
term of this Agreement based on each approved Administrative Budget and ROPS
prepared pursuant to the Dissolution Act.
6. City Cost Allocation Plan; Estimated Cost of Services and Facilities.
Expenses shall be calculated in the manner set forth in 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.
6.1 Wages and Benefits for the Successor Agency. Wage and
Benefit expenses incurred in connection with City employees described to perform
administrative services work for Successor Agency. 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 cost allocation plan.
6.2 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 Annual Administrative Budget.
6.3 Specific Services. All expenses that City may actually incur in
providing specific administrative services on behalf of Successor Agency including, but
not limited to, audit services, lease of space to accommodate Successor Agency's
activities, City Treasurer services, property insurance for Successor Agency's
properties, contracts for real estate data and information, department supplies, mail and
postage services, equipment maintenance and IT support.
7. Annual Expenses Deemed City Advance. For each year in which
Successor Agency does not have adequate funds to pay and reimburse for
Administrative Expenses and/or Enforceable Obligation Expenses, each such amount
4
shall be deemed an advance by City to
deemed to have been loaned by City to
Operations Loan").
Successor Agency and such amount shall be
Successor Agency ("City/Successor Agency
8. Repayment of Operations Loan. Successor Agency agrees to repay the
City/Successor Agency Operations Loan (and all future advances thereto) from (former)
tax increment funds allocated to Successor Agency that are to be paid from property tax
revenues deposited in the Redevelopment Property Tax Trust Fund pursuant to
California Health and Safety Code Section 34177(k) and other applicable laws.
Successor Agency shall repay to City the principal amount of the City/Successor
Agency Operations Loan on or before the last date that Successor Agency may receive
tax increment funds pursuant to the time and financial limitations required to meet all
enforceable obligations of the Successor Agency and subject to the Dissolution Act and
other applicable laws.
9. 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 declares that it would
have approved this Agreement irrespective of the invalidity of any particular portion
hereof.
10. Effective Dane of Aureement. This Agreement shall become effective as
of the date in the first paragraph hereof and shall continue thereafter until modified or
terminated by the parties hereto.
11. Subordination Indebtedness. The indebtedness of the City/Successor
Agency Operations Loan under this Agreement shall be junior and subordinate to other
allocated moneys made from the Redevelopment Property Tax Trust Fund including
those pursuant to California Health and Safety Code Section 34183(a)(1) and (2).
5
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
ATTEST:
Maria L. Moms, City Clerk,
Dated:
APPROVED AS TO FORM
Omar Sandoval, City Attorney
Dated:
CITY OF SAN JUAN CAPISTRANO, a
California Municipal Corporation
By:
Larry Kramer, Mayor
Dated:
[Signatures continue on next page]
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[Signatures continued from previous page]
CITY OF SAN JUAN CAPISTRANO ACTING
AND SERVING AS THE SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
LIM
ATTEST:
Larry Kramer, Mayor
Dated:
Maria L. Moms, City Clerk on behalf of the Successor Agency
Dated:
APPROVED AS TO FORM
Tom Clark, Stradling, Yocca, Carlson, and Rauth
Special Counsel to Successor Agency
Dated:
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Christy Jakl
From:
Christy Jakl
Sent:
Wednesday, May 02, 2012 4:13 PM
To:
Cindy Russell; Michelle Bannigan
Cc:
Maria Morris; Christine Casper
Subject:
Oversight Board Executed Documents
This message contains attachments delivered via ShareFile.
• 12-0502 Agr for Reimbursement of Cost (City -Successor Agency).pdf
• SJCOB 12-05-02-01.pdf
• SJCOB 12-05-02-02.pdf
Download the attachments by clicking here.
Good Afternoon,
Please use the link above to access the executed documents approved at the May 2, 2012 Oversight
Board meeting.
Thank you!
Chi-ist%? JIakl
Deputy City Clerk
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(949) 443-6310 1 (949) 493-1053 fax
Christy Jakl
From: Christy Jakl
Sent: Thursday, May 03, 201210:08 AM
To: Cindy Russell; Michelle Bannigan
Cc: Christine Casper
Subject. SACRA Resolutions
Attachments: SACRA 12-05-01-Ol.pdf; SACRA 12-05-01-02.pdf
Good Morning,
Attached are the executed SACRA resolutions approved at the 5/1 City Council meeting.
Thanks!
C;ht-ist� RN
Deputy City Clerk
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(949) 443-6310 1 (949) 493-1053 fax
AGENDA REPORT
TO: Karen P. Brust, City
FROM:
Cindy Russell, Chief Financial officer/City Treasurer
SACRA 611/2012
H3
SUBJECT: Consideration of Resolution Approving the Successor Agency
Administrative Budget from February 1, 2012 to June 30, 2012, and
Requesting the Oversight Board to Authorize the Successor Agency to
Enter Into an Agreement with the City of San Juan Capistrano for
Administrative Support.
RECOMMENDATION:
By motion, adopt a Resolution:
1. Approving the Successor Agency's proposed Administrative Budget for the
period from February 1, 2012, through June 30, 2012; and,
2. Authorizing the Successor Agency to enter into an "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan" rCosts
Reimbursement Agreemenn with the City of San Juan Capistrano pursuant to
Code Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act for
reimbursement of costs incurred by the City to support Successor Agency
operations and responsibilities consistent with the Administrative Budget
proposed to be approved by the Successor Agency; and,
3. Authorizing the Successor Agency, upon Oversight Board approval, to transmit
the Administrative Budget and Cost Reimbursement Agreement, when approved
and entered into, to the County of Orange Auditor -Controller, State Department
of Finance (DOF) and State Controller's Office; and,
4. Authorizing the Successor Agency to post the Administrative Budget and Cost
Reimbursement Agreement on its website.
SITUATION:
The California State Legislature enacted Assembly Bill x1 26 (the "Dissolution Act") to
dissolve redevelopment agencies formed under the Community Redevelopment Law.
The California Supreme Court in its decision in California Redevelopment Association v.
Matosantos, issued December 29, 2011, (the "Supreme Court Decision"), declared the
Dissolution Act to be constitutional. Under the Dissolution Act, all California
redevelopment agencies were dissolved effective February 1, 2012, and various actions
are now required by successor agencies to unwind the affairs of all former
redevelopment agencies.
LWA
Agenda Report
Page 2
May 1, 2012
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. Pursuant to Section 341770), the Administrative Budget is to
include all of the following: (a) estimated amounts of the Successor Agency's
administrative costs for the upcoming six-month period (first period is February 1, 2012,
to June 30, 2012 based on reformed dates); 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 to the Successor Agency.
For Fiscal Year 2011-2012, the City, as Successor Agency, is entitled to receive up to
5% of the portion of its former tax increment payable to meet the enforceable
obligations of the former redevelopment agency as shown on the Recognized
Obligation Payment Schedule and up to 3% of that amount each year after that, but not
less than $250,000 each year, to meet the administrative expenses of serving as the
Successor Agency. The proposed Successor Agency Administrative Budget is
prepared as Exhibit A of Attachment 1. Under Health and Safety Code Section
34177(k), the Successor Agency will provide the County of Orange Auditor -Controller
the administrative cost estimates from the approved Administrative Budget that are to
be paid from property tax revenues deposited into the Redevelopment Property Tax
Trust Fund for the period February 1, 2012, to June 30, 2012.
In addition, in order to ensure provision of the necessary services from they City to
support Successor Agency responsibilities in winding down the activities of the former
San Juan Capistrano Community Redevelopment Agency ("Agency") and under the
proposed Administrative Budget, it is necessary that the City and the Successor Agency
enter into an agreement for reimbursement of costs incurred by the City to support
Successor Agency operations and responsibilities. Staff is recommending the
Successor Agency approve the "Agreement for Reimbursement of Costs and
City/Successor Agency Operations Loan" ("Cost Reimbursement Agreement") prepared
as Exhibit B pursuant to Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act.
Once the Successor Agency reviews and approves the Administrative Budget and Cost
Reimbursement Agreement, they are required to be considered and approved by the
Oversight Board. This item is scheduled for consideration by the Oversight Board at its
special meeting of May 2, 2012.
FINANCIAL CONSIDERATIONS:
Administrative costs associated with the Successor Agency wind down of Agency affairs
are estimated to be $180,873, excluding legal costs for the period from February 1,
2012, through June 30, 2012. Legal costs, totaling $31,975 are segregated from the
administrative costs and listed as a separate enforceable obligation on the City
Recognized Obligations Payment Schedule (ROPS). Although legal costs are listed
separately on the ROPS, they have been included on the Administrative Budget
schedule (Exhibit A to the Resolution) pending their approval as a separate obligation
Agenda Report
Page 3 May 1, 2012
by the California State Department of Finance (DOF). Total estimated administrative
and legal costs are $212,848.
The administrative allowance is limited to 5% of the tax increment for Fiscal Year
2011/12. This amount is calculated to be $386,807. For the five month period from
February 1, 2012, through June 30, 2012, the administrative allowance is calculated to
be $161,170 (5/12 X $386,807). Additionally, the City's redevelopment agency
administrative fund (Fund 04) has a fund balance of approximately $66,000 that is
available to cover any costs in excess, of the administrative allowance and/or any legal
costs not approved as an enforceable obligation separate from the administrative
allowance through June 30, 2012. The amounts on deposit in this fund were received in
prior years from redevelopment agency tax increment.
For future fiscal years, the City's administrative allowance is limited to 3% of tax•
increment or a minimum of $250,000. Based on tax increment projections, the
administrative allowance would be capped at $250,000.
NOTIFICATIONS:
None
RECOMMENDATION:
By motion, adopt a Resolution:
1. Approving the Successor Agency's proposed Administrative Budget for the
period from February 1, 2012, through June 30, 2012; and,
2. Authorizing the Successor Agency to enter into an "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement") with the City of San Juan Capistrano pursuant to
Code Sections 34171(d)(1)(F) and 34178(a) of the Dissolution Act for
reimbursement of costs incurred by the City to support Successor Agency
operations and responsibilities consistent with the Administrative Budget
proposed to be approved by the Successor Agency; and,
3. Authorizing the Successor Agency, upon Oversight Board approval, to transmit
the Administrative Budget and Cost Reimbursement Agreement, when approved
and entered into, to the County of Orange Auditor -Controller, State Department
of Finance (DOF) and State Controller's Office; and,
4. Authorizing the Successor Agency to post the Administrative Budget and Cost
Reimbursement Agreement on its website.
Agenda Report
Page 4 May 1, 2012
Respectfully submitted,
Cindy Russel
Chief Financial Officer/City Treasurer
Prepared by,
Michelle Bannigan 6a,
Accounting Manager
Attachment:
1. Resolution approving the Successor Agency Administrative Budget from
February 1, 2012, to June 30, 2012, (Exhibit A — Administrative Budget; and
Exhibit B - Agreement for Reimbursement of Costs and City/Successor Agency
Operations Loan)
RESOLUTION NO. SACRA 12 -05 -01 -XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO REDEVELOPMENT
AGENCY, APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE
BUDGET FROM FEBRUARY 1, 2012, TO JUNE 30, 2012 PURSUANT TO
HEALTH AND SAFETY CODE SECTION 341770) AND REQUEST TO
OVERSIGHT BOARD AUTHORIZING THE SUCCESSOR AGENCY TO
ENTER INTO AN AGREEMENT WITH THE CITY OF SAN JUAN
CAPISTRANO FOR ADMINISTRATIVE SUPPORT PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34171
WHEREAS, the San Juan Capistrano Community Redevelopment Agency
("Agency") was established as a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code
Section 33000, et seq. ("CRL"), and has been authorized to transact business and
exercise the power of a redevelopment agency pursuant to action of the City Council
("City Council") of the City of San Juan Capistrano ("City"); and
WHEREAS, Assembly Bill x1 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 (the "Dissolution Act"); and
WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to
the Dissolution Act; and
WHEREAS, by Resolution No. 12-01-10-01 approved by the City Council at an
open meeting on January 10, 2012, the City chose to become and serve as the
successor agency to the dissolved Agency under the Dissolution Act; and
WHEREAS, 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 all 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") and;
WHEREAS, Health and Safety Code Section 341770) requires the Successor
Agency to prepare a proposed Administrative Budget covering the period from February
1, 2012, through June 30, 2012; and
WHEREAS, 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 upcoming 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 as
Successor Agency; and
ATTACHMENT 1
WHEREAS, the Administrative Budget must be approved by the Oversight Board
pursuant to Health and Safety Code Section 341770); and
WHEREAS, upon the Oversight Board's approval of the Administrative Budget,
the Administrative Budget will be provided to the County of Orange Auditor -Controller
pursuant to Health and Safety Code Section 34177(k) so that the Successor Agency's
estimated administrative costs in the approved Administrative Budget will be paid from
property tax revenues deposited into the Redevelopment Property Tax Trust Fund for
the upcoming six-month period; and
WHEREAS, pursuant to Section 34180(h) the Successor Agency may request
authorization from the Oversight Board for the Successor Agency and the City of San
Juan Capistrano 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 Agency, including the estimated costs set forth in the
Administrative Budget; and
WHEREAS, the Successor Agency desires to enter into that certain "Agreement
for Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs
Reimbursement Agreement"), which agreement will authorize the reimbursement of
costs incurred by the City to support Successor Agency operations and obligations; and
WHEREAS, the City Council, on behalf of the City acting solely in its capacity as
Successor Agency to the Agency, has duly considered this Resolution and has
determined that the adoption of this Resolution is in the best interests of the City, in its
capacity as Successor Agency to the Agency, and the health, safety, and welfare of the
residents of the City, and in accord with the public purposes and provisions of
applicable state and local laws and requirements.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano, acting solely as the Successor Agency to the Community
Redevelopment Agency, does hereby resolve as follows:
Section 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 341770), the City Council, acting solely as a
Successor Agency to the Agency, hereby approves the Administrative Budget, attached
hereto as Exhibit A and incorporated by this reference.
Section 3. Pursuant to the Dissolution Act, the City Council, acting solely as a
Successor Agency to the Agency, hereby authorizes the Successor Agency to enter into
the Cost Reimbursement Agreement substantially in the form of the Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan, attached hereto
as Exhibit B and incorporated by this reference.
2
Section 4. The City Manager or her authorized designees are further authorized and
directed to submit the Successor Agency Administrative Budget and Cost
Reimbursement Agreement to the Oversight Board on behalf of the City.
Section 5. Upon approval by the Oversight Board, the City Council, acting solely as
a Successor Agency to the Agency, authorizes the Successor Agency to transmit the
Administrative Budget and Costs Reimbursement Agreement, when approved and
entered into between the Successor Agency and the City, to the County of Orange
Auditor -Controller, the California State Department of Finance, and the State
Controller's Office.
Section 6. Upon approval by the Oversight Board, the City Council, acting solely as
a Successor Agency to the Agency, the City Manager or her authorized designees are
directed to post the Administrative Budget and Costs Reimbursement Agreement (when
entered into) on the City/Successor Agency website.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this day of , 2012.
ATTEST:
Maria Moms, City Clerk
CITY OF SAN JUAN CAPISTRANO, ACTING
SOLELY IN ITS CAPACITY AS A
SUCCESSOR AGENCY
Larry Kramer, Mayor
3
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
February 1 2012 tO June 30. 2012
Expenditure Category
Description
Amount
Salaries and benefits
Successor Agency share of City em to eels salaries and benefits
$106,154
Facility charges
Successor Agency share of City's overhead costs for offices ace
.19476
Vehicle fleet charges
Successor Agency share of City's overhead costs for vehicles
6,457
Insurance charges
Successor Agency share of City's overhead costs for insurance
28 284
IT/communication charqes
Successor Agency share of City's overhead costs for computers
and phones
19,956
Materials and supplies
Successor Agency share of various supplies
292
Utilities
Successor Agency share of electricity, gas,and water costs
1,592
Training
Participation by the CFO and Accounting Manager at the
Successor Agency training in March 2012 sponsored by the
California Redevelopment Association (includes mileage
reimbursement)
662
Sub-total -Administrative Allowance (1)(2)
$180,873
services 3
Contract for legal services
31,975
ital
Total Admintstrative Expensee;
$212,848
(1) For Fiscal Year 2011-12, the City, as the Successor Agency, is entitled to receive up to 5% of the portion of
its former tax increment payable, but not less than $250,000, to meet the administrative expenses of serving as
the Successor Agency.
(2) - Administrative costs for salaries and benefits and overhead costs are identified on Page 5, Lines 6 and 7 of
the Successor Agency's Recognized Obligation Payment Schedule (ROPS).
(3) - Legal services are identified on Page 5, Lines 14 and 15 of the Successor Agency's ROPS as separate
enforceable obligations.
EXHIBIT A
AGREEMENT FOR REIMBURSEMENT OF COSTS
AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN
This AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/
SUCCESSOR AGENCY OPERATIONS LOAN ("Agreement") is made and entered into
as of , 2012, by and among the CITY OF SAN JUAN CAPISTRANO, a
California municipal corporation ("City"), and the CITY OF SAN JUAN CAPISTRANO
ACTING AS SUCCESSOR AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY ("Successor Agency")
RECITALS
A. The San Juan Capistrano 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. Assembly Bill (AB)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, Califomia Redevelopment Association v.
Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution
Act and thereby all redevelopment agencies in California are subject to the Dissolution
Act and were dissolved effective February 1, 2012.
D. On January 11, 2012, the City Council adopted Resolution No. 12-01-10-
01 at an open public meeting choosing to become and serve as the "Successor Agency"
to the dissolved Agency under the Dissolution Act.
E. As of and on and after February 1, 2012, the City serves as the
"Successor Agency" and is performing 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 the seven -
member Oversight Board.
F. On January 17, 2012, the City Council adopted Resolution No. 12 -01 -17 -
pursuant to California Health and Safety Code Section 34176 of the Dissolution Act,
declining to assume the housing assets and functions of the Agency and selected the
San Juan Capistrano Housing Authority to so assume such housing assets and
functions, and on such date also pursuant to Section 34176 the 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, any assets assigned and transferred by operation of
EXHIBIT "B"
U
law and to be assigned and transferred by authorization of and direction from the
oversight board when formed and operating pursuant to the Dissolution Act to the
Successor Housing Agency are not adequate to fund administrative support costs and
expenses unless any future Low and Moderate Income Housing fund balances are
authorized to be transferred under State Law to the Successor Housing Agency. If this
occurs, a future modification to this Agreement may be necessary.
G. City, acting as Successor Agency, is engaged in activities necessary and
appropriate to winding down the activities of the Agency's Community Development
Central Project Area ("Central Project Area") that was originally adopted and amended
by ordinances of the City Council.
H. Employees of the City will perform day -today administration and
operation of the Successor Agency's duties and functions. Since the San Juan
Capistrano Community Redevelopment Agency was originally formed and upon
Successor Agency's effectiveness as of February 1, 2012, 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, record-keeping, and other services necessary for the
Successor Agency to cant' out its responsibilities.
1. City and Successor Agency desire to affirm and document an on-going
cooperative arrangement regarding administrative and operational services and
payment for services by entering into a new contract whereby City agrees to provide
administrative and operational services and Successor Agency agrees to pay City for
the cost of all such services to be provided by City for Successor Agency.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants
and conditions herein contained, the parties hereto agree as follows:
1. Reimbursement of Administrative Expenses and Enforceable
Oblination 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
by the Successor Agency as part of an Administrative Budget pursuant to Health &
Safety Code Section 341770) and approved by the Oversight Board, as such annual
Administrative Budget may be amended, revised or reconciled from time to time. In
addition, the Successor Agency shall be liable to the City for any program or operational
expenses associated with Enforceable Obligations, as that term is defined in the
Dissolution Act as set forth in each Recognized Obligation Payment Schedule
("ROPS"), including salary and benefits of employees..
2
2. Cost of Administrative Expenses and Administrative Cost Allowance
from February 1, 2012, through June 30, 2012.
2.1 Successor Agency and City estimate that the cost of Administrative
Expenses to be provided by City to the Successor Agency for the period of February 1,
2012, through June 30, 2012, is Two Hundred Twelve Eight Hundred Forty Seven
Dollars ($212,847), which is itemized in the Successor Agency's Administrative Budget
approved by action of the Oversight Board. Pursuant to the provisions of Section 4
herein, Successor Agency agrees to pay the sum of $212,848 to City to pay for the
estimated Administrative Expenses of the Successor Agency for the period February 1,
2012, through June 30, 2012, and for subsequent fiscal years, subject to Oversight
Board approval and Successor Agency preparation and approval of an Administrative
Budget estimate for such services and costs pursuant to the Dissolution Act.
2.2. Information and supporting data regarding the staffing and
allocation of costs have been prepared by Successor Agency and City staff and are
made a part hereof by this reference. Within thirty (30) days of the expiration of each
calendar quarter during the term of this Agreement, the parties shall determine the
actual costs incurred by Successor Agency for services provided to the City and the
Successor Agency shall reimburse the City for these costs within thirty (30) days of this
determination. For the period of February 1, 2012, through March 31, 2012, these
amounts shall be reimbursed within thirty (30) days of the approval of this agreement.
Within thirty (30) days of the expiration of Fiscal Year 2011-12 and each fiscal year
thereafter during the term of this Agreement, the parties shall determine the actual costs
incurred by Successor Agency for services provided to the City. If the actual amount
incurred by Successor Agency is less than the estimated amount, City shall reimburse
Successor Agency in the amount overpaid within 30 days of such notice, and if the
actual amount incurred by Successor Agency is greater than the estimated amount, any
additional amount above the estimated amount shall be due and payable by Successor
Agency from the Redevelopment Obligation Retirement Fund and the additional amount
shall be advanced to Successor Agency by City.
3. Services to be Provided. City agrees to continue to aid and cooperate
and shall aid and cooperate in the planning, undertaking, construction and operation of
remaining enforceable obligations of the Successor Agency previously incurred by the
Agency as it relates to Enforceable Obligations of the 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, the City and its
officers and employees shall perform services for Successor Agency in carrying out its
work related to meeting the Agency's Enforceable Obligations and for winding down the
activities of the Agency and shall have access to any and all personnel and the facilities
of the departments and offices of the City. Those City officers and employees who are
also appointed to positions or offices with or related to the Successor Agency shall
perform services for the each agency in a dual capacity. The City Manager, and other
appropriate City officials on behalf of the City and the Successor Agency, and 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
3
considered Administrative Expenses in the Annual Administrative Budget. The costs of
other Enforceable Obligations where supported by City services are identified as
specific line items on the EOPS or ROPS and not part of the estimated Administrative
Expenses identified in Section 1.
4. Meetine Facilities. City agrees to make available to Successor Agency
such office space and meeting space as is necessary for conducting meetings and the
business of such agency, including use of the City Council Chambers 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 agency
shall use such space in accordance with the rules and regulations of the City as
applicable to other buildings and offices of the City.
S. Succeeding Years durina Term of Aureement. The procedure set forth
above in Sections 2, 3 and 4 shall be undertaken by Successor Agency, the Oversight
Board, and City for each successive six-month period and for each fiscal year during the
term of this Agreement based on each approved Administrative Budget and ROPS
prepared pursuant to the Dissolution Act.
6. City Cost Allocation Plan; Estimated Cost of Services and Facilities.
Expenses shall be calculated in the manner set forth in 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.
6.1 Wanes and Benefits Successor Agency. Wage and Benefit
expenses incurred in connection with City employees described to perform
administrative services work for Successor Agency. 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 cost allocation plan.
6.2 General Overhead. A general indirect administrative operating
expenses and overhead support charge which shall be determined in accordance with
the City's cost allocation plan and Successor Agency Annual Administrative Budget.
6.3 Specific Services. All expenses that City may actually incur in
providing specific administrative services on behalf of Successor Agency including, but
not limited to, audit services, lease of space to accommodate Successor Agency's
activities, City Treasurer services, property insurance for Successor Agency's
properties, contracts for real estate data and information, department supplies, mail and
postage services, equipment maintenance and IT support.
7. Annual Expenses Deemed City Advance. For each year in which
Successor Agency does not have adequate funds to pay and reimburse for
Administrative Expenses and/or Enforceable Obligation Expenses, each such amount
4
shall be deemed an advance by City to Successor Agency and such amount shall be
deemed to have been loaned by City to Successor Agency ("City/Successor Agency
Operations Loan").
8. Repayment of Operations Loan. Successor Agency agrees to repay the
City/Successor Agency Operations Loan (and all future advances thereto) from (former)
tax increment funds allocated to Successor Agency that are to be paid from property tax
revenues deposited in the Redevelopment Property Tax Trust Fund pursuant to
California Health and Safety Code Section 34177(k) and other applicable laws.
Successor Agency shall repay to City the principal amount of the City/Successor
Agency Operations Loan on or before the last date that Successor Agency may receive
tax increment funds pursuant to the time and financial limitations required to meet all
enforceable obligations of the Successor Agency and subject to the Dissolution Act and
other applicable laws.
9. 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 declares that it would
have approved this Agreement irrespective of the invalidity of any particular portion
hereof.
10. Effective Date of Aereement. This Agreement shall become effective as
of the date in the first paragraph hereof and shall continue thereafter until modified or
terminated by the parties hereto.
11. Subordination Indebtedness. The indebtedness of the City/Successor
Agency Operations Loan under this Agreement shall be junior and subordinate to other
allocated moneys made from the Redevelopment Property Tax Trust Fund including
those pursuant to California Health and Safety Code Section 34183(a)(1) and (2).
5
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their officers thereunto duly authorized on the date first above written.
ATTEST:
Maria L. Moms, City Clerk,
Dated:
APPROVED AS TO FORM
Omar Sandoval, City Attorney
Dated:
CITY OF SAN JUAN CAPISTRANO, a
California Municipal Corporation
22
Larry Kramer, Mayor
Dated:
[Signatures continue on next page]
[Signatures continued from previous page]
CITY OF SAN JUAN CAPISTRANO ACTING
AND SERVING AS THE SUCCESSOR
AGENCY TO THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
By:
ATTEST:
Larry Kramer, Mayor
Dated:
Maria L. Morris, City Clerk on behalf of the Successor Agency
Dated:
APPROVED AS TO FORM
Tom Clark, Stradling, Yocca, Carlson, and Rauth
Special Counsel to Successor Agency
Dated:
7