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Home My WebLink AboutED Insufficient Funds SASAN RAFAEL AGENDA ITEM NO.: 8, a SUCCESSOR MEETING DATE: April 7, 2014 Department: Economic Development Prepared by: Stephanie Lovette Economic Development Manager Executive Director Approval. SUBJECT: Resolution of the Successor Agency to Authorize the transmission of Insufficient Fund Notice Pursuant to - Health & Safety Code § 34183. (B) to the Marin County Auditor -Controller RECOMMENDATION: Authorize the transmission of an insufficient funds notice. 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 Successor Agency. The actions of the Oversight Board must be approved by the California Department of Finance. Successor Agency staff is required to prepare a Recognized Obligation Payment Schedule ("ROPS") and an administrative budget every six months for Oversight Board approval. The ROPS must include all Agency obligations for the subsequent six-month period. The Oversight Board and California Department of Finance have approved all ROPS submitted by the San Rafael Successor Agency, with the exception of ROPS 14-15A. ROPS 14-15A was approved by the Oversight Board and submitted to the State on March L 2014. The State has 45 days to approve all ROPS submittals. The ROPS process also includes a reconciliation of previous ROPS and actual Agency payments. The CA Department of Finance has taken the position that approved ROPS payments to successor agencies will be reduced by the funds that the Agency has received and not yet paid for approved obligations from previous ROPS. FOR AGENCY SECRETARY ONLY File No. Agency Meeting.- Disposition* * —11 Page 2 of 2 i• i i« i• , - - • •' . i ` ! ,�, i. . ! • i ! « « ` • - is i . « t, . i « ! .� a t- Vii- � i i• !` t . i • • �r • ! 11 NJ FISCAL IWACT; There is no fiscal impact from filing the Notice. OPTIONS: • Adopt Resolution. • Modify the Resolution. • Request i further information. • Rejectthe staff recommendation. ACTION REQUIRED: Adopt the Resolution. RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY TO AUTHORIZE THE TRANSMISSION OF INSUFFICIENT FUND NOTICE PURSUANT TO HEALTH & SAFETY CODE § 34183,(B) TO THE MARIN COUNTY AUDITOR -CONTROLLER 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 s .); 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, the Successor Agency has prepared recognized obligation payment schedule (the "ROPS") and made associated notifications and distributions pursuant to Health and Safety Code Section 34177(l) (2) (A); and WHEREAS, the ROPS and the Successor Agency Administrative Budget must be approved by the Oversight Board pursuant to Health and Safety Code Sections 34177(l)(2)(B) znd 341770), respectively; and WHEREAS, the Oversight Board and California Department of Finance have approved Ill ROPS submitted by the Successor Agency, including ROPS 13-14 A covering the period of July -December 2013 and ROPS 13-14 B covering the period of January -June 2014; and WHEREAS, the Oversight Board has approved the 14-15A ROPS submitted by the Successor Agency for the period of July -December 2014 and the Successor Agency filed the ROPS 14-15A with the California Department of Finance-, and WHEREAS, Health and Safety Code Section 34183 directs local County Auditor - Controllers to release funds to successor agencies on June I to fund obligations approved on the July -December ROPS and on January 2 for the January -June ROPS; and WHEREAS, the Marin County Auditor -Controller has not released funds to the San Rafael Successor Agency on the statutory dates; and WHEREAS, Health & Safety Code § 34183. (B) provides a mechanism for successor agencies to notify the County Auditor -Controller if the agency has insufficient funds to meet the obligations on the approved ROPS. Health & Safety Code § 34183. (B) requires these notices bc'r filed no later than December I and May I of each year, and WHEREAS, because the Marin County Auditor- Control I er is not paying the San Rafa Successor Agency in a timely manner, the Agency has been advised by legal counsel to file th insufficient funds notice pursuant to Health & Safety Code § 34183. (B). I NOW, THEREFORE,, BE IT RESOLVED that the City Council, acting as the Governing Board of the Successor Agency, hereby authorizes staff to transmit a Notice of Insufficient Funds pursuant to Health & Safety Code § 34183.(B) to the Marin County Auditor -Controller by December 1. BE IT FURTHER RESOLVED,, that this Resolution shall take immediate effect upon � M� 0 1, 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 Monday, the seventh day of April 2014, by the following vote, to wit: AYES: Members: Bushey, Colin, Connolly and Chairman Phillips NOES: Members: None ABSENT: Members: Mccullougj Esther C. Beime, Agency Secretarl -•I CITY OF SAN RAFAEJ �r 3WA - 1IF1 USE THIS FORM WITH EACH SUBMITTAL OF A 'CONTRACT, AGREEMENT7 ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. Successor / SRCC AGENDA ITEM NO. 8. a Stephanie L.ovette ii q IN q lip �� RESOLUTION RAFAEL SUCCESSOR AGENCY TO AUTHORIZE TRANSMISSION PURSUANT HEALTH SAFETY CODE ♦ (B) TO THE MARIN COUNTY AUDITOR -CONTROLLER "partfnent i (signature) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL /AGENCY AGENDA ITEM: YjAL(-,,e4 Jl�]_�� -A� City Manager (sign re) VIM City Attorney (signatu )