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-