HomeMy WebLinkAboutCM ROPS; July-Dec 2012OF
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Agenda Item No: g c
Meeting Date: June 18, 2012
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Stephanie Lovette° c,._ City Manager
Economic Development Manger
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL IN
THE CITY'S CAPACITY AS SUCCESSOR AGENCY OF THE SAN RAFAEL
REDEVELOPMENT AGENCY, APPROVING THE SECOND RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JULY THROUGH DECEMBER 2012 AND
DIRECTING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO TAKE ALL
ACTION NECESSARY AND APPROPRIATE ON BEHALF OF THE CITY AS SUCCESSOR
AGENCY UNDER THE COMMUNITY REDEVELOPMENT LAW IN CONNECTION WITH
THE APPROVED SECOND RECOGNIZED OBLIGATION PAYMENT SCHEDULE
RECOMMENDATION: Adopt a resolution of the City Council, in the capacity as governing
board of the successor agency to the former Redevelopment Agency, approving the Second
Recognized Obligation Payment Schedule for the period of July -December 2012 and authorizing
the City Manager to take such actions and execute such other documents as are appropriate to
effectuate the intent of the resolution.
OVERVIEW: The California state legislature enacted Assembly Bill xl 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.
BACKGROUND: On January 3, 2012 the City Council of the City of San Rafael (the "City
Council") adopted a resolution accepting for the City the role of successor agency (the "Successor
Agency") to the Redevelopment Agency of the City of San Rafael (the "Redevelopment
Agency"). An oversight board (the "Oversight Board"), consisting of members representing the
County, the City, and various education and special districts, was formed to approve and direct
certain actions of the City as Successor Agency. The actions of the Oversight Board must be
approved by the California Department of Finance.
FOR CITY CLERK ONLY
File No.: � cr
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Council Meeting:4A1_)c7t �
Disposition:� !
On January 30, 2012, the Successor Agency adopted the first Recognized Obligation Payment
Schedule ("the First ROPS") and an administrative budget for the period of January -June 2012.
Agency staff also prepared the second Recognized Obligation Payment Schedule and an
administrative budget for the period of July -December 2012 (the "Second ROPS"). The Agency
Board has not yet approved the Second ROPS.
The Oversight Board met on May 9, 2012 and approved certain items on the First ROPS, the
Second ROPS and the administrative budgets for January -June and July -December 2012. The
partially approved First and Second ROPS and the administrative budgets were also approved by
the California Department of Finance.
The Oversight Board met again on June 1, 2012 and approved additional items on the First ROPS
(the "Amended First ROPS") and the Second RODS.
The Amended First ROPS was transmitted to the Department of Finance on June 1, 2012. The
Second ROPS was transmitted to the Department of Finance on June 4, 2012. Under the Law, the
actions of the Oversight Board are not effective for three business days pending a request for
review by the Department of Finance. If the Department of Finance requests a review, the
Department shall have ten days from the date of its request to approve the action of the Oversight
Board or return the item to the Oversight Board for reconsideration. At the time of this staff
report, Agency staff has not received any communication from the CA Department of Finance on
the additional items approved on the Amended First ROPS.
DISCUSSION: At this time, former Agency revenues and tax increment may only be used to
fund transactions that are listed on the ROPS and approved by the Oversight Board and the
Department of Finance.
The Law allows Successor Agency's to receive tax increment for administrative costs. The Law
allowed a minimum of $250,000 per year, with a slightly higher allowance in the initial year. The
Oversight Board approved an administrative budget of $244,878 for the five month period of
February 2012 -June 2012 and $125,000 for the period of July -December 2012. The remaining
$125,000 will be approved as part of the Third ROPS covering the period of January -July 2013.
FISCAL IMPACT: The Second ROPS and the administrative budget set forth the funds that the
Successor Agency will receive from tax increment. The County Auditor Controller has been
directed to transfer the approved funds to the Successor Agency on June 1, 2012. To date, the
County has transferred an amount equal to the June payment for the SRRDA bonds. Staff is
working with the County staff regarding the remaining approved funds.
OPTIONS:
• Adopt the Resolution
• Modify the Resolution
• Request further information
• Reject the staff recommendation
ACTION REQUIRED: Staff recommends that the Council adopt the Resolution.
ATTACHMENTS:
Attachment A — Amended Recognized Obligation Payment Schedule for the period of July -
December 2012 as approved by the Oversight Board
Attachment B — Administrative Budget for the period of July -December 2012 as approved by the
Oversight Board.
3
RESOLUTION NO. 08-2012
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL IN THE CITY'S
CAPACITY AS SUCCESSOR AGENCY OF THE SAN RAFAEL REDEVELOPMENT
AGENCY, APPROVING THE SECOND RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE PERIOD OF JULY THROUGH DECEMBER 2012 AND DIRECTING
THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO TAKE ALL ACTION
NECESSARY AND APPROPRIATE ON BEHALF OF THE CITY AS SUCCESSOR AGENCY
UNDER THE COMMUNITY REDEVELOPMENT LAW IN CONNECTION WITH THE
APPROVED SECOND RECOGNIZED OBLIGATION PAYMENT SCHEDULE
WHEREAS, the California state legislature enacted Assembly Bill xl 26 (the
"Dissolution Act") to dissolve redevelopment agencies formed under the Community
Redevelopment Law (Health and Safety Code Section 33000 et seg.); and
WHEREAS, on January 3, 2012 and pursuant to Health and Safety Code Section 34173,
the City Council of the City of San Rafael (the "City Council") declared that the City of San
Rafael, a municipal corporation (the "City"), would act as successor agency (the "Successor
Agency") for the dissolved Redevelopment Agency of the City of San Rafael (the "Former
RDA") effective February 1, 2012; and
WHEREAS, on February 1, 2012, the Former RDA was dissolved pursuant to Health and
Safety Code Section 34172; and
WHEREAS, the Dissolution Act provides for the appointment of an oversight board (the
"Oversight Board") with specific duties to approve certain Successor Agency actions pursuant to
Health and Safety Code Section 34180 and to direct the Successor Agency in certain other
actions pursuant to Health and Safety Code Section 34181; and
WHEREAS, on January 30, 2012, the Former RDA adopted an enforceable obligation
payment schedule (the "RDA EOPS") as required pursuant to Health and Safety Code Section
34169(g); and
WHEREAS, on June 18, 2012, the Successor Agency approved an Amended EOPS for
the period of August- December 2011 and approved a Second Amended EOPS for the period of
January -July 2012; and
WHEREAS, on March 1, 2012 pursuant to Health and Safety Code Section 34177(1) (2)
(A) the Successor Agency prepared a draft recognized obligation payment schedule (the
"ROPS") and made associated notifications and distributions; and
WHEREAS, on March 1, 2012 pursuant to Health and Safety Code Section 341770) (k)
the Successor Agency prepared an administrative budget (the "Successor Agency Administrative
Budget") and made associated notifications and distributions; and
105\03\1046268.7
WHEREAS, the ROPS and the Successor Agency Administrative Budget must be
approved by the Oversight Board pursuant to Health and Safety Code Sections 34177(1)(2)(B)
and 341770), respectively; and
WHEREAS, the Oversight Board held its first meeting on May 9, 2012 and approved
portions of the ROPS and the Successor Agency Administrative Budget for July -December 2012
(the "Second ROPS") pursuant to Health and Safety Code Sections 34177(1)(2)(B) and 341770),
respectively; and
WHEREAS, on May 11, 2012, the Successor Agency provided the partially approved
the Second ROPS and the approved Successor Agency Administrative Budget for July -
December 2012 to the State Department of Finance, the County of Marin and posted the
document on the City's website; and
WHEREAS, on May 22, 2012, the CA Department of Finance approved the actions of
the Oversight Board with minor changes to the Second ROPS; and
WHEREAS, the Oversight Board held its second meeting on June 1, 2012 and approved
further portions of the Second ROPS and this document was provided to the CA Department of
Finance on June 1, 2012.
NOW, THEREFORE, BE IT RESOLVED that the City Council, acting as the Governing
Board of the Successor Agency, hereby approves the Second ROPS and the Successor Agency
Administrative Budget for July -December 2012, which contains the Successor Agency
Administrative Cost Estimates. Copies of the Second ROPS and the Successor Agency
Administrative Budget are on file with the City Clerk.
BE IT FURTHER RESOLVED that the City Council, acting as the Governing Board of
the Successor Agency, hereby authorizes and directs the City Manager or the City Manager's
designee, acting on behalf of the Successor Agency, to file, post, mail or otherwise deliver via
electronic mail, internet posting, and/or hardcopy, all notices and transmittals necessary or
convenient in connection with the adoption of the Second ROPS, approval of the Successor
Agency Administrative Budget containing the Successor Agency Administrative Cost Estimates
for July -December 2012, and other actions taken pursuant to this Resolution.
BE IT FURTHER RESOLVED that unless and until the City Council, acting as the
Governing Board of the Successor Agency, resolves otherwise, the Successor Agency shall be
referred to in all its official documents, papers, reports, agreements, deeds, and other written
materials, and shall carry out its duties and exercise its rights as the "City of San Rafael, acting in
its capacity as the Successor Agency of the Redevelopment Agency of the City of San Rafael, or
similar wording.
11
105\03\109626&7
BE IT FURTHER RESOLVED that the City Council, acting as the Governing Board of
the Successor Agency, declares that the assets, obligations, liabilities, and activities of the
Successor Agency are and shall remain separate from the assets, obligations, liabilities and
activities of the City, and that all costs of, liabilities of, and claims against the Successor Agency
and/or the Oversight Board shall be solely the costs and liabilities of the Successor Agency
and/or the Oversight Board and shall not be costs of, liabilities of, and/or claims against the City.
BE IT FURTHER RESOLVED that nothing in this Resolution shall abrogate, waive,
impair or in any other manner affect the right or ability of the City, as a municipal corporation, to
initiate and prosecute any litigation with respect to any agreement or other arrangement between
the City and the Former RDA, including, without limitation, any litigation contesting the
purported invalidity of such agreement or arrangement pursuant to the Dissolution Act.
BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon
adoption.
1, Esther C. Beirne, Clerk of the City Council of the City of San Rafael as Successor Agency,
hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a
regular meeting of the City Council of the City of San Rafael as Successor Agency, held on
Monday, the eighteenth day of June 2012, by the following vote, to wit:
AYES: Councilmembers: Connolly, Heller, Levine, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
3
105103\1046268.7
Esther C. Beirne, City Clerk
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City of San Rafael as Successor to San Rafael Redevelopment Agency
Administrative Budget July 2012 -December 2012
Approved by oversight board May 9, 2012
Description
Payee
Description
Source
Total Cost
Agency admin
staff
City of San
Rafael
staff costs
Administrative
Cost allowance
$80,1201
Agency admin
Finance Staff
City of San
Rafael
staff costs
Administrative
Cost allowance
$14,980
Agency admin
auditor
Maize &
Associates
Administrative
Cost allowance
$10,000
Agency admin.
utilities/leases
PG&E
Utility -lease
payments
Administrative
Cost allowance
$1,947
Agency admin.
Maintenance
Various
Maint. RDA
offices
Administrative
Cost allowance
$0
Agency admin.
IT/communication
City of San
Rafael
IT services
Administrative
Cost allowance
$5,655,
Agency admin.
liability insurance
City of San
Insurance
Administrative
Cost allowance
$1,468
Agency admin.
legal
—Rafael
Various
Legal Services -
Administrative
Cost allowance
$10,831
j Total
$125,000
Note: Allowable administrative expense for first year is 3% of property tax allocated to the
Successor Agency in 2012-13 or a minimum of $250,000.
5/11/2012