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HomeMy WebLinkAboutCC Resolution 8680 (Surplus Account Agreement)RESOLUTION NO. 8680 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING A RESERVE FUND AND SURPLUS ACCOUNT AGREEMENT BETWEEN THE CITY, THE SAN RAFAEL REDEVELOPMENT AGENCY AND THE SAN RAFAEL ELEMENTARY SCHOOL DISTRICT, THE SAN RAFAEL HIGH SCHOOL DISTRICT AND THE MARIN COMMUNITY COLLEGE DISTRICT. WHEREAS, the San Rafael Redevelopment Agency (the "Agency") has previously entered into agreements with the San Rafael Elementary School District, San Rafael High School District and the Marin Community College District (the "Districts") providing for establishment and maintenance of a reserve fund for the benefit of the Districts which reserve fund is the sole revenue available to the Agency for mitigating any financial burden or detriment to the Districts resulting from implementation of the Redevelopment Plan; and WHEREAS, the Districts desire to withdraw funds from the reserve fund to mitigate financial burden or detriment that the Districts have experienced and the Agency desires to assist the Districts in obtaining that withdrawal; and WHEREAS, the Agency, City and the Districts desire to obtain distribution from the County of Marin of funds that should have previously been distributed to the City and the Districts; and WHEREAS, the City and the San Rafael High School District and San Rafael Elementary School District desire to terminate the Assistance Agreement they had previously entered into. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The City Council of the City of San Rafael hereby approves the Reserve Fund and Surplus Account Agreement presented to the City Council in connection with consideration of this resolution and hereby authorizes the City Manager or her designee to execute that agreement on behalf of the City Council subject to such minor changes that the City Manager deems appropriate. I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Monday , the 15th day of June , 1992, by the following vote to wit: AYES: COUNCILMEMBERS: Breiner, Cohen, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 14103XP50 JEA M. LEONCIN `, City Clerk ORIGINAL ���Fo RESERVE FUND AND SURPLUS ACCOUNT AGREEMENT This Agreement is made as of June 15 , 1992 by and between the San Rafael Redevelopment Agency ("Agency"), the City of San Rafael ("City"), the San Rafael Elementary School District ("ESD"), the San Rafael High School District ("HSD"), and the Marin Community College District ("CCD") with reference to the following facts: A. In 1973 the Agency entered into separate but similar agreements (111973 Agreements") with ESD, HSD, CCD and the County of Marin ("County"). (ESD, HSD and CCD are referred to in this Agreement collectively as the "Districts."). Each of those agreements provided for limits on the amount of tax increment revenue the Agency could claim and receive pursuant to the Central San Rafael Redevelopment Plan ("Plan") and Health and Safety Code Section 33670. B. On or about September 11, 1984, the Agency entered into an agreement (111984 Agreement") with the County, the City, and the Districts which superseded the 1973 Agreements and all amendments to the 1973 Agreements. On or about December 18, 1984 the Agency, the City, the County, and the Districts agreed to an amendment (111984 Amendment") to the 1984 Agreement. The 1984 141036.P50 06/18/92 -1- Agreement and the 1984 Amendment provided for an increase in the tax increment the Agency could receive over what would have been permitted under the 1973 Agreements. C. On or about September 4, 1984 the Agency and the Districts entered into an agreement ("Schools Agreement") providing for the Agency to make certain payments to a reserve fund ("Reserve Fund") for the potential benefit of the Districts. Prior to the date of this Agreement, the Agency had made all the payments to the reserve fund required under the Schools Agreement. Since its establishment, the County has held the Reserve Fund. The Agency and the Districts desire to provide for distributions from the Reserve Fund that were not provided for in the Schools Agreement. D. On or about September 17, 1984, the City and ESD and HSD entered into an agreement ("Assistance Agreement") providing for the City to maintain certain ESD and HSD facilities. In light of the distributions ESD and HSD may receive from the Reserve Fund as provided in this Agreement, the City, ESD and HSD desire to terminate the Assistance Agreement. E. In the course of administering payments of tax increment revenue to the Agency pursuant to Health & Safety Code Section 33670 and the 1984 Agreement and 1984 Amendment, the County has 141036.PS0 06/18/92 -2- accumulated a surplus account ("Surplus Account") that should have been distributed to the parties other than the Agency. The parties desire to obtain that distribution. THEREFORE, the parties agree as follows: 1. Amount in Reserve Fund. The Agency, in compliance with and under the provisions of the schools Agreement, made deposits to the Reserve Fund totalling $965,844. Interest on the Reserve Fund has or should have accrued from the date of those deposits at the rate earned on other similar County funds over the period the County has held the Reserve Fund with the interest compounded on a quarterly basis. 2. Districts Draws From Reserve Fund,. Notwithstanding anything to the contrary in the Schools Agreement, the parties agree that each of the Districts may withdraw from the Reserve Fund its Proportionate Share (as defined below) of the Reserve Fund. For the purposes of this Paragraph 2, the Proportionate Share for each District shall be as follows: San Rafael Elementary School District: 47.67% San Rafael High School District: 35.68% Marin Community College District: 16.65% TOTAL: 141036.P50 06/18/92 -3- 1000 To that end, the parties agree to promptly make demand on the County for payment to each of the Districts of each District's Proportionate Share (or such lesser amount as a District may specify) of the Reserve Fund including accrued interest. The parties recognize and agree that the payments from the Reserve Fund to the Districts are intended to mitigate financial burden or detriment of the Districts and that the funds in the Reserve Fund are the sole revenues available to the Agency for mitigation of such burden or detriment. 3. Amount of Surnlus Account. The parties estimate that the amount in the Surplus Account is or should be approximately $2,800,000 plus interest accrued on the Surplus Account from the date of its establishment at the rate earned on other similar County funds over the period the County has held the Surplus Account with the interest compounded quarterly. The parties other than the Agency agree to promptly make demand on the County for payment to each party (other than the Agency) of that party's share of the Surplus Account including accrued interest. The parties agree that each party's share of the Surplus Account shall be the percentage of the property tax revenue from the area of the Plan that each would have received had the Agency not adopted the Plan. 141036.PS0 06/18/92 -4- 4. Termination of Assistance Aareement. The City, ESD and HSD agree that the Assistance Agreement dated September 17, 1984 by and between the City, ESD and HSD shall terminate and have no force or effect beginning with the 1992-93 fiscal year. Attest: SAN RAFAEL REDEVELOPMENT AGENCY Jeanne M. Leoncini By: Agency Secretary Attest: CITY OF SAN RAFAEL Jeanne M. Leoncini By: City Clerk Dated: Dated: Dated: 141036.PS0 06/18/92 SAN RAFAEL ELEMENTARY SCHOOL DISTRICT By: SAN RAFAEL HIGH SCHOOL DISTRICT By: MARIN COMMUNITY COLLEGE DISTRICT By: -5-