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Home My WebLink AboutED ROPS; 2013 July - DecAGENDA ITEM NO.: 8 • a MEETING DATE: March 4, 2013 1 AGENDA REPORT Department: Economic Development Prepared by: Steph«nie Lovette Executive Director Approval i-`'�t _ Economic Development Manager 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 a Recognized Obligation Payment Schedule for the Period July through December 2013 Prepared Pursuant to Health and Safety Code Section 34177(1), and Directing the City Manager of 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 Recognized Obligation Payment Schedule RECOMMENDATION: Adopt the attached resolution. OVERVIEW: The California State Legislature enacted Assembly Bill ABxl 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 AND DISCUSSION: 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 Successor Agency. The actions of the Oversight Board must be approved by the California Department of Finance. On January 30, 2012, the Successor Agency adopted the first Recognized Obligation Payment Schedule ("the First RODS") and an administrative budget for the period of January -June 2012. FOR AGENCY SECRETARY ONLY File No.: xes�fiy+ecc�.y a k�% Agency Meeting: / C .I Ce J, 3 Disposition: ke'�I,trrv.V 3 d!3 -mss Page 2 of 2 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 Oversight Board approved certain items on the First and Second BOPS, including the Successor Agency 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 on August 30, 2012 and approved the Third ROPS for the period of January -July 2013. The Third ROPS was transmitted to the CA Department of Finance by the September 1, 2012 deadline. The Oversight Board met on February 26, 2012 and approved ROPS 13-14 A, the fourth ROPS. ROPS 13-14 A was transmitted to the CA Department of Finance by the March 1, 2013 deadline. ROPS 13-14 A included a listing for the full amount of the Third ROPS. Pursuant to the Statute, the payment for the Third ROPS was due on January 2, 2013. The County has not paid the obligation and therefore the full amount of the obligation was re -listed on ROPS 13-14 A. FISCAL IMPACT: The Law allows Successor Agencies 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. The Board also approved $125,000 for the period of July -December 2012 (Second ROPS) and $250,000 on the Third ROPS. This $250,000 covers the period of January 1, 2013 -December 31, 2013. The Statute set forth the dates for the submittal of the ROPS and the dates that the County Auditor -Controller is required to remit property taxes in a sufficient amount to fund the ROPS obligations. The ROPS A is due on March 1 and payment deadline is June 1. The ROPS B is due on October 1 and to be paid by January 2. The County has not been meeting the payment deadlines. Payment for ROPS I and II was due on June 1, 2012 and paid in late December 2012. The payment date for ROPS III (B) was due January 2, 2013. The next required payment date is June 1, 2013. The County Auditor -Controller has indicated that the full amount of ROPS 13-14 A, including the overdue amount for ROPS III will be paid on June 1, 2013. The County Auditor -Controller has also pledged to work with the Successor Agency finance staff on the ROPS submittals to assure that future ROPS are paid on time. OPTIONS: • Adopt the Resolution approving ROPS 13-14 A. • Modify the Resolution approving the ROPS 13-14 A. • Request further information. • Reject the staff recommendation. ACTION REQUIRED: Staff recommends that the Successor Agency adopt the Resolution. ATTACHMENTS: Attachment A: ROPS 13-14A Attachment B: Administrative Budget July -December 2013 RESOLUTION NO. 2013-02 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 A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY THROUGH DECEMBER 2013 PREPARED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(L), 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 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!e t 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 Health and Safety Code Section 3417 7 (j) (k) requires the Successor Agency prepared an administrative budget (the "Successor Agency Administrative Budget") and made associated notifications and distributions; and 1 105\031096268.7, WHEREAS, the ROPS and the Successor Agency Administrative Budget must be approved by the Oversight Board pursuant to Health and Safety Code Sections 34177 (I) (2) (B) and 341770), respectively; and WHEREAS, the Oversight Board has approved the First, Second and Third ROPS and the approved Successor Agency Administrative Budgets pursuant to Health and Safety Code Sections 34177(1)(2)(B) and 341770), respectively; and WHEREAS, the Successor Agency provided the approved First, Second and Third ROPS 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 and the First and Second ROPS; and WHEREAS, on August 30, 2012 the Oversight Board approved the Third ROPS; and WHEREAS, on October 15, 2012, the CA Department of Finance approved the actions of the Oversight Board and the Third ROPS; and WHEREAS, on February 26, 2013 the Oversight Board approved ROPS 13-14 A (the fourth ROPS) and the Agency staff submitted ROPS 13-14A to the CA Department of Finance on March 1, 2013 pursuant to HSC Section 34177(m). NOW, THEREFORE, BE IT RESOLVED that the City Council, acting as the Governing Board of the Successor Agency, hereby approves ROPS 13-14A and the Successor Agency Administrative Budget for July -December 2013, which contains the Successor Agency Administrative Cost Estimates. Copies of the ROPS 13-14A 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 take other actions pursuant to this Resolution. BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. 2 105\03\1096268.7 I, Esther C. Beirne, Secretary to the Successor Agency, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael Successor Agency, held on Tuesday, the fourth day of March 2013, by the following vote, to wit: AYES: Members: Colin, Connolly, Heller, McCullough & Chairman Phillips NOES: Members: None ABSENT: Members: None Esther C. Beirne, Agency Secretary 105\031096268.7 a cu 2 q:@ C4 AA co r4 00 00(::1 r4 cc� VII r4 cl� Ln ke ts ts Ln 1-1 �o q �D Ln Ln LA LA N Ln 2v a cu :................ {)}/T.I , 2 \}` °\\}\ := :- \\ ------_ f/)/)7){\f }$){}i � t,tt_\\� \9/77 Is /E \\\/f/{ \\\\\\\\\\ \\,\: R 8 City of San Rafael as Successor to San Rafael Redevelopment Agency Administrative Budget July -December 2013 (6/12 of a year) Description Payee Description Source Total Cost Agency admin staff City of San Rafael staff costs Administrative Cost allowance $191,614 Agency admin Finance Staff City of San Rafael staff costs Administrative Cost allowance $30,533 Agency admin auditor Maize & Associates Administrative Cost allowance $10,000 Agency admin. utilities/communications PG&E Utility -lease payments Administrative Cost allowance $6,995 Agency admin. Maintenance Various Maint. RDA offices Administrative Cost allowance $750 Agency admin. Non personnel services City of San Rafael IT services Administrative Cost allowance $27,975 Agency admin. legal Various Legal Services Administrative Cost allowance $22,065 Total $289,931 Actual Amount requested $250,000 jAmount requested for 6 months F I — 1 $125,0001 Note: Estimated actual costs for 6 month period. However, maximum allowable administrative expense is 3% of property tax allocated to the Successor Agency or a minimum of $250,000. 2/27/2013 Attachment B CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA/ SRCC AGENDA ITEM NO. 8.a DATE OF MEETING: March 4,2013 FROM: Stephanie Lovefte DEPARTMENT: Economic Development DATE: August 28, 2012 TITLE OF DOCUMENT: 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 a Recognized Obligation Payment Schedule for the Period JULY THROUGH DECEMBER 2013 Prepared Pursuant To Health and Safety Code Section 34177(1), and Directing the City Manager of 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 Recognized Obligation Payment Schedule Depa4ment Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL AGENCY APPROVED AS TO FORM: AGENDA ITEM: yl/ City Manager (sign, ture) City Attorney (signature)