Resolution Number SJCOB 12-05-02-01OVERSIGHT 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 sect. ("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
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 .lune 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 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 CitylSuccessor 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 2nd day of May 2012.
ATTEST:
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Maria Mortis, Oversight Bad d Secretary
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t -
Laura Freese, Chair
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STATE OF CALIFORNIA )
COUNTY OF ORANGE. ) ss.
CITY OF SAN JUAN CAPISTRANO )
1, 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 2`1 day of May, 2012,
by the following vote:
AYES: BOARD MEMBERS: Doll, Hampton, McCord, Tatarian, Thomas, Kerr and Chair Freese
NOES i BEARD MEMBERS: None
ABSENT:.BOARD MEMBERS: None
MARIA MORRIS, OVERSIGHT
D SECRETARY
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(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 (BOPS).
(3) Legal services are identified on Page 5, Lines 14 and 15 of the Successor Agency's ROPS as separate
enforceable obligations.
EXHIBIT A
SUCCESSOR AGENCY ADMINISTRATIVE
February • June 30, 2012
Expenditure Category
Description
Amount
Salaries and benefits
Successor Agency share of City em to ee'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 City's 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 hones
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
Legal 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 (BOPS).
(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 unicipal corporation CCity"), 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, 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
Exhibit B
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 taw 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 (OCentral 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.
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
Oblina-don 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.
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 year,, 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 tern 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 BOPS
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 Agent. 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 CCity/Successor Agency
Operations Loan'.
S. 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.
Succet;sor 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. Provlsions 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. €ffipctiye 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 Krani
jJr, ayor
Dated: X 0/ k
[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 Kramer, Mayor
Dated: MCIg, L D I D
r1
Mad". orris, City CI on behalf of the Successor Agency
Dated; —"atA
APPROVED AS TO FORM
Tom Clark, Stradlin o ca, Carlson, and Rauth
Special 'Co nsel to sor Agency
Dated: C Za
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