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Home My WebLink About12-24 - Approving Successor Agency's Proposed Administrative BudgetRESOLUTION NO. 12-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ACTING AND SERVING AS SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY, APPROVING THE SUCCESSOR AGENCY'S PROPOSED ADMINISTRATIVE BUDGET PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(J), AND APPROVING AN AGREEMENT FOR REIMBURSEMENT OF COSTS AND CITY/SUCCESSOR AGENCY OPERATIONS LOAN BETWEEN THE CITY OF COSTA MESA AND THE SUCCESSOR AGENCY FOR ADMINISTRATIVE SUPPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 34171; AND MAKING OTHER FINDINGS IN CONNECTION THEREWITH. WHEREAS, the Costa Mesa Redevelopment Agency ("Agency") was established as a redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq. ("CRL"), and previously authorized to transact business and exercise powers of a redevelopment agency pursuant to action of the City Council of the City of Costa Mesa ("City"); and WHEREAS, Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which laws cause the dissolution and wind down of all redevelopment agencies ("Dissolution Act"); and WHEREAS, on December 29, 2011, in the petition California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld the Dissolution Act and thereby all redevelopment agencies in California were dissolved as of and on February 1, 2012 under the dates in the Dissolution Act that were reformed and extended thereby; and WHEREAS, the Agency is now a dissolved redevelopment agency pursuant to the Dissolution Act; and WHEREAS, by a resolution considered and approved by the City Council at an open public meeting the City chose to become and serve as the "Successor Agency" to the dissolved Agency under the Dissolution Act; and WHEREAS, as of and on and after February 1, 2012, the City serves and acts as the Successor Agency and is performing its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all subject to the review and approval by a seven -member oversight board ("Oversight Board"); and WHEREAS, pursuant to Section 34179 the Successor Agency's Oversight Board has been formed and the initial meeting has occurred on April 19, 2012; and WHEREAS, Section 34179 provides that the Oversight Board has fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188 of Part 1.85 of the Dissolution Act; and WHEREAS, Section 34177(j) requires the Successor Agency to prepare a proposed administrative budget covering the period from February 1, 2012 through June 30, 2012 and for the period July 1, 2012 to December 31, 2012 and submit it to the Oversight Board for approval; and WHEREAS, pursuant to Section 34177(j), the Successor Agency's "Administrative Budget" is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the up -coming six month fiscal period; (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the city serving as Successor Agency; and WHEREAS, the Successor Agency's proposed Administrative Budget has been reviewed by the Successor Agency and by this Resolution the Successor Agency desires to approve the proposed Administrative Budget and submit it to the Oversight Board for its review and approval; and WHEREAS, the Administrative Budget, if and as approved by the Oversight Board, will be provided to the County of Orange Auditor Controller pursuant to Section 34177(k) so that the Successor Agency's estimated administrative costs in the approved Administrative Budget will be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund for the two periods of this fiscal year; and WHEREAS, pursuant to Section 34180(h) the Successor Agency may request authorization from the Oversight Board for the Successor Agency to enter into an agreement with the City to ensure provision of the necessary services from the City to support the Successor Agency's responsibilities in winding down the activities of the former community redevelopment agency, including the estimated costs set forth in the Administrative Budget; and WHEREAS, the Successor Agency desires to enter into that certain "Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan" ("Costs Reimbursement Agreement") with the City, which agreement will authorize the reimbursement of costs incurred by the City to support the Successor Agency's operations and obligations; and WHEREAS, by this Resolution the Successor Agency desires to approve the Costs Reimbursement Agreement and authorize it to be submitted to the Oversight Board for its review and authorization. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL ACTING AND SERVING AS THE SUCCESSOR AGENCY OF THE COSTA MESA REDEVELOPMENT AGENCY: Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. Pursuant to the Dissolution Act, the Successor Agency approves its proposed Administrative Budget, attached hereto as Attachment No. 1 and incorporated by this reference. Section 3. Pursuant to the Dissolution Act, the Successor Agency approves the Agreement for Reimbursement of Costs and City/Successor Agency Operations Loan, substantially in the form of attached hereto as Attachment No. 2 and incorporated by this reference. Section 4. The Successor Agency shall submit to the Oversight Board for its approval and authorization the Administrative Budget and the Costs Reimbursement Agreement, and when/if approved and entered into between the City and the Successor Agency, submit both to the County Auditor -Controller ("CAC"), the State Department of Finance ("DOF"), and the State Controller's Office ("SCO"). Section 5. The Assistant Finance Director or her authorized designee is directed to post the Administrative Budget and Costs Reimbursement Agreement (when/if entered into) on the City/Successor Agency website. Section 6. This Resolution shall be effective after the Oversight Board's approval and thereafter the transmittal of this Resolution with the Administrative Budget and Costs Reimbursement Agreement attached to the DOF and the expiration of three (3) business days pending a request for review by the DOF within the time periods set forth in the Dissolution Act; in this regard, if the DOF requests review hereof it will have 10 days from the date of its request to approve the Oversight Board's action or return it to the Oversight Board for reconsideration and the action, if subject to review by DOF, will not be effective until approved by DOF. Section 7. The Acting Deputy City Clerk acting on behalf of the Successor Agency shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 10th day of April 2012. ATTEST: Christine Cordon, Acting Deputy City Clerk on behalf of Successor Agency s, Eric R. Bever, Mayor on behalf of� Successor Agency APPROVED AS TO FORM: f Thomas Duane, City Attorney on behalf of Successor Agency STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA I, CHRISTINE CORDON, Acting Deputy City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 12-24 and was duly passed and adopted by the City Council of the City of Costa Mesa serving as Successor Agency at a special meeting held on the 10th day of April, 2012, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: BEVER, RIGHEIMER, LEECE, MENSINGER, MONAHAN NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 11th day of April, 2012. N�46 CHRISTINE CORDON, ACTING DEPUTY CITY CLERK ON BEHALF OF SUCCESSOR AGENCY (SEAL)