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Home My WebLink AboutSA Insufficient Fund NoticeSAN RAFAEL SUCCESSOR AGENCY AGENDA ITEM NO.: 7. a MEETING DATE: November 17, 2014 AGENDA REPORT Department: Economic Development Prepared by: Stephanie Lovette Economic Development Manager r` Executive Director Approval:�� SUBJECT: Resolution of the Successor Agency to Authorize the transmission of Insufficient Fund Notice Pursuant to - Health & Safety Code § 341$3. (B) to the Marin County Auditor -Controller RECOIMIMENDATION: 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. ROPS 14-15B was approved by the Oversight Board and California State Department of Finance. 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 RODS. FOR AGENCY SECRETARY ONLY File No.: f�5t) Agency Meeting: (A -c Disposition: i' L( R6VIV ,2C(4, -CS— Page 2 of 2 ANALYSIS: Health and Safety Code Section 34183 directs local County Auditor -Controllers to release funds to successor agencies on June 1 to fund obligations approved on the July -December BOPS and on January 2 for the January -June BOPS. The County of Marin follows a different schedule. The County provides the Agency funds for the Agency bond payments every November and May. The County provides the Agency with the funds for the remaining approved obligations from both BOPS A and B on June 1. To date, the Marin County Auditor -Controller's payment system has not negatively impacted the Agency, because the Agency had enough cash on hand to pay bills that came due during the interim period. Marin County's payment system may become problematic in the future due to the State's requirement that successor agency's expend all cash on a six month basis instead of the annual period used by Marin County. 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 an approved RODS. Once this Notice is verified by the County and the CA Department of Finance, the County is ordered to release funds to the successor agency prior to releasing funds to any other taxing agency. Health & Safety Code § 34183. (B) requires these notices be filed no later than December 1 and May 1 of each year. Agency counsel has advised the Agency to file this notice because the Marin County Auditor - Controller is not paying the San Rafael Successor Agency in a timely manner. FISCAL IMPACT: There is no fiscal impact from filing the Notice. • Adopt the Resolution. • Modify the Resolution. • Request further information. • Reject the staff recommendation. ACTION REQUIRED: Adopt the Resolution. RESOLUTION NO. 2014-05 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 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, 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(1)(2)(B) and 34177(j), respectively; and WHEREAS, the Oversight Board and California Department of Finance have approved all ROPS submitted by the Successor Agency; and WHEREAS, the Oversight Board has approved the 14-15B ROPS submitted by the Successor Agency for the period of January -June 2015 and the ROPS 14-15B was approved by California Department of Finance on November 4, 2014; and WHEREAS, Health and Safety Code Section 34183 directs local County Auditor - Controllers to release funds to successor agencies on June 1 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 § 34-183. (B) requires these notices be filed no later than December 1 and May 1 of each year; and WHEREAS, because the Marin County Auditor -Controller is not paying the San Rafael Successor Agency in a timely manner, the Agency has been advised by legal counsel to file the insufficient funds notice pursuant to Health & Safety Code § 34183. (B). 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 adoption. 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 Monday, the 17th day of November 2014, by the following vote, to wit: AYES: Members: Bushey, Colin, McCullough & Mayor Phillips NOES: Members: None ABSENT: Members: Connolly Esther C. Beirne, Agency Secretary CITY OF SAN RAFAEL •* J 111 1111 q - - ,.S: USE TMIS FORMn _ „ �► AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCII Successor / SRCC AGENDA ITEM NO. DATE OF MEETING: 11/17/2014 FROM: Stephanie Lovette D'TE: November 1i i I �y��il� 7M7�IlI►�l�� l RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY TO AUTHORIZE THE TRANSMISSION OF INSUFFICIENT FUND NOTICE PURSUANT TO - HEALTH & SAFETY CODE § 341.83.(B) TO THE MARIN COUNTY AUDITOR -CONTROLLER Dep riment Nea signature) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager signature) FAINNIM �► �► �► City Attorney (signature