HomeMy WebLinkAbout12-25 - Operations Loan between City and Successor AgencyRESOLUTION NO. 12-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, APPROVING THE
AGREEMENT FOR REIMBURSEMENT OF COSTS AND
CITY/SUCCESSOR AGENCY OPERATIONS LOAN
BETWEEN THE CITY OF COSTA MESA AND THE
SUCCESSOR AGENCY TO THE COSTA MESA
REDEVELOPMENT AGENCY, SUBJECT TO SUBMITTAL
TO AND APPROVAL BY THE OVERSIGHT BOARD TO
THE SUCCESSOR AGENCY PURSUANT TO THE
DISSOLUTION ACT.
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 and 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 is scheduled to occur 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, pursuant to Section 34180(h) the Successor Agency may request
authorization from the Oversight Board for the City and the Successor Agency to enter
into an agreement 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 City desires to enter into that certain "Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan"
("Costs Reimbursement Agreement"), which agreement will authorize the
reimbursement of costs incurred by the City to support Successor Agency operations
and obligations; and
WHEREAS, by this Resolution the City Council desires to approve the
Costs Reimbursement Agreement subject to its submittal to and authorization by the
Oversight Board.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COSTA MESA:
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 City Council approves
the Costs Reimbursement Agreement substantially in the form of the Agreement for
Reimbursement of Costs and City/Successor Agency Operations Loan, attached hereto
as Attachment No. 1 and incorporated by this reference, subject to such contract being
submitted to and authorized by action of the Oversight Board to the Successor Agency
of the Costa Mesa Redevelopment Agency, and when/if approved and entered into
between the City and the Successor Agency. If so approved the City shall cooperate
with the Successor Agency in submittal of the Costs Reimbursement Agreement to the
County Auditor -Controller ("CAC"), the State Department of Finance ("DOF"), and the
State Controller's Office ("SCO").
Section 3. The City's Assistant Finance Director or her authorized
designee is directed to cooperate in the posting of the Costs Reimbursement
Agreement (when/if entered into) on the City/Successor Agency website.
Section 4. This Resolution shall be effective after the Oversight Board's
approval and thereafter the transmittal of this Resolution and the 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 5. The Acting Deputy City Clerk shall certify to the adoption of
this Resolution.
APPROVED AND ADOPTED this 10th day of April 2012.
Eric R. Bever, Mayor
ATTEST: APPROVED AS TO FORM:
Christine Cordon, Thomas Duarte, City Attorney
Acting Deputy City Clerk-
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. 12-25
and was duly passed and ado�ted by the City Council of the City of Costa Mesa at a
special meeting held on the 10t 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.
CHRISTINE CORDON,
ACTING DEPUTY CITY CLERK
(SEAL)