HomeMy WebLinkAboutFin LAIF Successor AgencynCITY 41P��400, Agenda Item No: 7 b.
I Meeting Date: February 6, 2012
SAN RAFAEL CITY COUNCIL AS SUCCESSOR AGENCY AGENDA REPORT
Department: FINANCE
Prepared by: Janet Pendoley City Manager Approves
Interim Finance Director
SUBJECT: RESOLUTION OF THE CITY OF SAN RAFAEL AS SUCCESSOR
AGENCY TO SAN RAFAEL REDEVELOPMENT AGENCY TO AUTHORIZE
INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND
RECOMMENDATION: ADOPT RESOLUTION
The State of California adopted AB x1 26 (the "Dissolution Act") on June 28, 2011, significantly
modifying the Redevelopment Law including suspending all new redevelopment activities except
for limited specified activities as of that date and dissolved redevelopment effective October 1,
2011.
AB I x 26 was immediately challenged by the California Redevelopment Association, the League
of California Cities and others on the validity and constitutionality of AB x1 26 to the California
Supreme Court on numerous grounds, including that the Act violates certain provisions of the
California Constitution. However, on December 29, 2011, the California Supreme Court
delivered its decision in the California Redevelopment Association v. Matosantos case, finding
the Dissolution Act constitutional and dissolving all California redevelopment agencies effective
February 1, 2012.
On January 3, 2012 the City of San Rafael approved Resolution 13279 expressing its intent to
serve as the Successor Agency of the San Rafael Redevelopment Agency, pursuant to Health &
Safety Code 34717 0) and Section 34173, and to retain the housing assets and functions
previously performed by the San Rafael Redevelopment Agency pursuant to Health & Safety
Code Section 34176.
The San Rafael Redevelopment Agency maintained two Local Agency Investment Fund (LAIF)
accounts for the investment of idle funds not immediately needed by the Agency. One account
Council Meeting: .2-141200- —
Disposition: CC-5,0(-Ur10AJ 6>j-2.Cj12.-
SAN RAFAEL CITY COUNCIL SUCCESSOR AGENCY AGENDA REPORT / Page: 2
was primarily for payment of administrative expenses and affordable housing uses. The other
account, holding the remaining 2002 refunded bond proceeds of 1992 and 1995, was dedicated
for annual payments to San Rafael High School district under an established tax sharing
agreement.
As a result of the recent events related to AB Ix 26 outlined above, LAIF recommended that all
Agency LAIF funds be withdrawn prior to the February 1, 2012 dissolution date. On January 27,
2012 City staff transferred all Agency funds into the Agency's West America bank account. As a
subsequent step, staff transferred the Agency's West America funds into a newly opened West
America account under the City's name as the successor agency. These steps ensured that all
funds of the former San Rafael Redevelopment Agency are now in City's successor agency bank
account.
In order to restore the City's ability to invest idle funds not immediately needed, the resolution
identified as Attachment A is presented for Council consideration. It authorizes the City as the
successor agency to deposit and withdraw funds in LAIF accounts. This single resolution can be
used to re-establish both operating and bond accounts under the successor agency title.
Staff recommends that the City authorize the same officers to initiate deposits and withdrawals
between LAIF and West America Bank:
• Nancy Mackle, City Manager
• Jim Schutz, Assistant City Manager
0 , Finance Director (when position is filled)
FISCAL IMPACT:
No fiscal impact occurs by having the Council authorize these LAIF accounts.
Staff recommends that Council adopt the resolution as presented in Attachment A.
W:\Managernent Services- WorkFile\Finance- WorkFile"Council MateriaUstaff Reports,2012\Successr
Aggy.Successor Agency LAIF Accounts.doc
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RESOLUTION OF THE CITY OF SAN RAFAEL AS SUCCESSOR
AGENCY TO SAN RAFAEL REDEVELOPMENT AGENCY TO
AUTHORIZE INVESTMENT OF MONIES IN THE LOCAL AGENCY
INVESTMENT FUND
AGENCY ADDRESS: 1400 Fifth Avenue San Rafael CA 94915 Agency Phone: 415-458-5001
WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to
the California Government Code to create a Local Agency Investment Fund in the State Treasury
for the deposit of money of a local agency for purposes of investment by the State Treasurer; and
WHEREAS, the City of San Rafael as Successor Agency to the San Rafael Redevelopment
Agency does hereby find that the deposit and withdrawal of money in the Local Agency Investment
Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose
of investment as stated therein as in the best interests of the City of San Rafael as Successor
Agency to then San Rafael Redevelopment Agency.
NOW, THEREFORE, BE IT RESOLVED that the City of San Rafael as Successor Agency
to the San Rafael Redevelopment Agency does hereby authorize the deposit and withdrawal of
City of San Rafael as Successor Agency to the San Rafael Redevelopment Agency monies in
the Local Agency Investment Fund in the State Treasury in accordance with the provisions of
Section 16429.1 of the Government Code for the purpose of investment as stated therein, and
verification by the State Treasurer's Office of all banking information provided in that regard.
BE IT FURTHER RESOLVED, that the following City of San Rafael as Successor Agency to
the San Rafael Redevelopment Agency officers or their successor in office shall be authorized to
order the deposit or withdrawal of monies in the Local Agency Investment Fund:
Nancy Mackle Jim Schutz currently vacant
City Manager
Assistant City Manager
Finance Director
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael As Successor Agency to the San
Rafael Redevelopment Agency, hereby certify that the foregoing resolution was duly and
regularly introduced and adopted at a regular meeting of the City of San Rafael As Successor
Agency to the San Rafael Redevelopment Agency held on Monday, the 6th day of February,
2012, by the following vote, to wit:
AYES: COUNCILMEMBERS: Connolly, Levine, McCullough and Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Heller
ESTHER C. BEIRNE, Clerk of the City of San Rafael
As Successor Agency to the San Rafael
Redevelopment Agency
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I ilk ri 9 Lei ON904j"Illue 90".14101:ply-M4
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SRRA / SRCC AGENDA ITEM NO.
DATE OF
MEETING: 2/6/12
FROM: Janet Pendoley
DEPARTMENT: Finance Department
DATE: January 31, 2012
TITLE OF DOCUMENT: RESOLUTION OF THE CITY OF SAN RAFAEL AS SUCCESSOR
AGENCY TO SAN RAFAEL REDEVELOPMENT AGENCY TO
AUTHORIZE INVESTMENT OF MONIES IN THE LOCAL
AGENCY INVESTMENT FUND
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RECEIV CD
JrN 3,
Deparfient Head (signature)
T-l"ORNE"'ll
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL / AGENCY
AGENDA ITEM:
A" 1"
City Manager (signature)
APPROVED AS TO FORM:
City Attorney (signature) I V�
