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HomeMy WebLinkAboutCC AG PKT 2012-04-09 #F 4 5EA(' CITY COUNCIL AGENDA REPORT e DATE: April 9, 2012 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Shally Lin, Interim Director of Finance SUBJECT: APPROVE THE EXECUTION OF COOPERATIVE AGREEMENT BETWEEN THE CITY AND THE SUCCESSOR AGENCY SUMMARY OF REQUEST: Staff recommends that the City Council adopt Resolution No. 6240 approving the execution of the Cooperative Agreement between the City and the Successor Agency. BACKGROUND AND ANALYSIS: Upon dissolution of the Seal Beach Redevelopment Agency on February 1, 2012 pursuant to AB X1 26, the Successor Agency to the Seal Beach Redevelopment Agency was constituted and is governed by a board of directors consisting of the members of the City Council. Pursuant to AB X1 26, the Successor Agency is required to undertake a number of actions, including winding down the affairs of the former Redevelopment Agency. For example, the Oversight Board for the Successor Agency may direct the staff of the Successor Agency to perform work in furtherance of the Oversight Board's duties and responsibilities under AB X1 26 and the Successor Agency must pay for all of the costs of meetings of the Oversight Board. In addition, the Successor Agency will have a number of ongoing responsibilities, such as paying debt service on enforceable obligations of the former Redevelopment Agency and preparing an administrative budget and Recognized Obligation Payment Schedule (ROPS) for each six-month fiscal period. Each proposed administrative budget must include a proposal for arrangements for administrative and operations services provided by the City or another entity. The attached Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and Other Expenses by and between the City and the Successor Agency provides for the Successor Agency to use the City's staff, facilities, and other resources for the administration and operations of the Agenda Item F Successor Agency. Pursuant to the Agreement, the City will advance these costs to the Successor Agency and the Successor Agency will reimburse the City for such advances. The Agreement must be approved by the Oversight Board for the Successor Agency. The attached Resolution approves execution of the Agreement by the City. ENVIRONMENTAL IMPACT: There will be no environmental impact associated with adoption of the attached Resolution and Cooperative Agreement. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: AB X1 26 provides for the Successor Agency to receive an annual Administrative Cost Allowance of not less than $250,000. The Administrative Cost Allowance will exclude any administrative costs that can be paid from bond proceeds or from sources other than property tax. The Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay the former Redevelopment Agency's enforceable obligations. RECOMMENDATION: Staff recommends that the City Council adopt Resolution No. 6240 approving the execution of a Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead, and Other Expenses by and between the City and the Successor Agency. SUBMITTED BY: NOTED AND APPROVED: /14( C4/1 10; / Shal in etp. - 1 Ingram, Ci nager Inte Director of Finance Prepared by: Alayna Hoang, Senior Accountant Page 2 RESOLUTION NUMBER 6240 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE EXECUTION OF A COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD AND OTHER EXPENSES BY AND BETWEEN THE CITY AND THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. Pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170), the Successor Agency to the Seal Beach Redevelopment Agency ("Successor Agency") is required to undertake a number of actions, including winding down the affairs of the former Redevelopment Agency pursuant to Health and Safety Code Section 34177(h). B. In connection with the administration and operations of the Successor Agency, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City. The City Manager of the City serves as Executive Director of the Successor Agency, the Director of Finance serves as Finance Officer of the Successor Agency, and the City Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public works, and other City departments devote and are expected to devote substantial time with respect to the administration and operations of the Successor Agency, including gathering information relating to the former Redevelopment Agency's enforceable obligations, conferring with public officials representing governmental agencies, and undertaking other activities in connection with administration and operations of the Successor Agency. C. By providing and making available to the Successor Agency the staff, facilities, services, and other resources of the City, including, without limitation, consultants, legal counsel, office space, equipment, supplies, and insurance, necessary to the administration and operations of the Successor Agency, the City has advanced and will continue to advance the cost of the foregoing to the Successor Agency. The City and the Successor Agency desire to enter into an agreement to provide for an appropriate method of reimbursement of such advances by the Successor Agency to the City. D. Pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations and pursuant to Health and Safety Code Sections 34178(a) and 34180(h), the Successor Agency may enter into agreements with the City with the approval of the oversight board for the Successor Agency(the"Oversight Board"). NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL HEREBY FINDS, DETERMINES, RESOLVES,AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The City Council hereby approves the Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and other Expenses by and between the City and the Successor Agency attached hereto as Exhibit A and incorporated herein by reference (the "Agreement") and the Mayor is hereby authorized and directed to execute the Agreement. Resolution Number 6240 Section 3. The officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things which they deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of April , 2012 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6240 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 9th day of April ,2012. City Clerk Resolution Number 6240 Exhibit "A" COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD AND OTHER EXPENSES This COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD AND OTHER EXPENSES (this "Agreement") is entered into as of February 1, 2012, by and between the City of Seal Beach (the "City") and the Successor Agency to the Seal Beach Redevelopment Agency(the"Successor Agency"). RECITALS: A. The Successor Agency is required to undertake a number of actions pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170) ("Part 1.85"), including winding down the affairs of the former Seal Beach Redevelopment Agency ("Agency") pursuant to Health and Safety Code Section 34177(h). B. Pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations. C. Pursuant to Health and Safety Code Sections 34178(a) and 34180(h),with the approval of the oversight board, the Successor Agency may enter into agreements with the City. D. In connection with the administration and operations of the Successor Agency, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City. E. The City Manager of the City serves as Executive Director of the Successor Agency, the Director of Finance serves as Finance Officer of the Successor Agency, and the City Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public works, and other city departments devote and are expected to devote substantial time with respect to the administration and operations of the Successor Agency, including gathering information relating to the Agency's enforceable obligations, conferring with public officials representing governmental agencies, and undertaking other activities in connection with winding down the affairs of the Agency. F. By providing and making available to the Successor Agency the staff, facilities, services, and other resources of the City, including, without limitation, consultants, legal counsel, office space, equipment, supplies, and insurance, necessary to the administration and operations of the Successor Agency, the City has advanced and will continue to advance the cost of the foregoing to the Successor Agency. G. The City and the Successor Agency desire to enter into this Agreement to acknowledge the foregoing recitals and to provide for an appropriate method of reimbursement of such advances by the Successor Agency to the City. NOW,THEREFORE,THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. The City shall make available to the Successor Agency its staff, facilities, services, and other resources, including, without limitation, consultants, legal counsel, office space, equipment, supplies, and Resolution Number 6240 insurance, necessary to the administration and operations of the Successor Agency. The Successor Agency shall have access to the foregoing staff, facilities, services, and other resources of the City. Section 2. The value of the City staff, including all employee retirement and other benefits, facilities, services, and other resources of the City, including, without limitation, office space, equipment, supplies, and insurance, necessary to the administration and operations of the Successor Agency made, and to be made, available to the Successor Agency for each six-month fiscal period beginning with the fiscal period commencing on January 1, 2012 and ending on June 30, 2012, determined in accordance with Section 3 hereof, shall constitute an advance to the Successor Agency by the City for each six-month fiscal period,to be repaid in accordance with Section 4 of this Agreement. Section 3. Following the end of each six-month fiscal period, beginning with the fiscal period commencing on January 1, 2012 and ending on June 30, 2012, the City Manager shall prepare and present to the Successor Agency an invoice for(i) the value of City staff, including all employee retirement and other benefits, based on time records prepared by City staff, which shall describe the time devoted exclusively to matters directly related to the administration and operations of the Successor Agency; (ii) the value of consultants and legal counsel based on invoices for services devoted exclusively to matters directly related to the administration and operations of the Successor Agency; (iii)the fair rental value of office space and equipment made available to the Successor Agency; and (iv) the value of supplies, insurance and other services and facilities provided by the City to the Successor Agency. Section 4. Within a reasonable time after the City submits an invoice to the Successor Agency pursuant to Section 3, the Successor Agency shall pay to the City the amount of the invoice from available funds of the Successor Agency. In the event that insufficient funds are available to the Successor Agency, any unpaid amounts shall be carried over to the next six- month fiscal period. Section 5. The parties hereto agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 6. Each party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other party at all reasonable times. Section 7. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. Section 8. This Agreement will be become effective upon approval of the Oversight Board to the Successor Agency. Section 9. This Agreement may be amended at any time, and from time to time, by an agreement executed by both parties to this Agreement and approved by the Oversight Board to the Successor Agency. (Intentionally Left Blank) Resolution Number 6240 CITY OF SEAL BEACH By Mayor ATTEST: City Clerk SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY By Chair ATTEST: Secretary APPROVED AS TO FORM: City Attorney Date Agency Counsel Date APPROVED: Date Oversight Board to the Successor Agency to the Seal Beach Redevelopment Agency