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Home My WebLink AboutCity Council Agenda Item No 09C ITY OF LADE LSIfiOPs...E DREAM EXTFLEMEW MEMBERS TO: HONORABLE MAYOR AND 1- FROM: PAT KILROY INTERIM CITY MANAGER DATE: APRIL 24, 2012 SUBJECT: ADOPTION BY THE CITY OF LAKE ELSINORE OF A REIMBURSEMENT AND OPERATING AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND THE CITY OF LAKE ELSINORE AS SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE . . • I icoi! t By Resolution No. 2012 -001 adopted on January 10, 2012, the City Council elected to become the Successor Agency of the Redevelopment Agency of the City of Take Elsinore upon the Agency's dissolution on February 1, 2012. Assembly Bill x1 20 provides the Successor Agency an administrative allowance to wind down the former redevelopment agency and administer the successor Agency and Oversight Board. Pursuant to Health & Safety code section 341770), the Successor Agency prepared an administrative budget and submitted it to the Oversight Board for its approval. The administrative budget was approved by the Successor Agency and the Oversight Board on April 10, 2012. The administrative budget covers staff salaries, attorney and consultant costs, rent, supplies, audit fees, record - keeping costs, and other administrative expenses. The law allows the greater of $250,000 or 5% of the property tax revenues listed in the ROPS for first year administrative costs (e.g. through June 30, 2012), and then the greater of $250,000 or 3% of property tax revenues for the following fiscal years. ADOPTION OF REIMBURSEMENT AGREEMENT April 24, 2012 Pa 2 . .."relil In order to implement the approved administrative bud the Cit and the Successor A desire to enter into an a to allow the Successor A utilization of Cit staff, facilities, and administrative resources in consideration for the Successor A pa to Cit of a portion of the administrative allowance. The Successor A pa for Cit services shall not include the Cit pro mana or staff costs associated with specific Enforceable Obli listed on the Reco Obli Pa Schedule ( BOPS ) . Those pro costs will be char separatel to the Successor A and reimbursed separatel b the Successor A from the propert taxes deposited into the real propert tax trust fund b the Count of Riverside. Fiscal Impact Adoption of the Reimbursement and Operatin A insures that the Cit g eneral fund will be reimbursed for Cit staff support and other costs incurred b the Successor A pursuant to the approved administrative bud Recommendation 1. Approve the Resolution adoptin the Reimbursement and Operatin A and authorizin the Interim Cit Mana or his desi to take all necessar actions with respect thereto on behalf of the Successor A Prepared b James Rile Director of A gisstrative Services Barbara Leibold Cit Attorne Approved b Pat Kilro Interim Cit Mana 1. Resolution adoptin the Reimbursement and Operatin A and authorizin the Interim Cit Mana or his desi to take all necessar actions with respect thereto on behalf of the Successor A Pa 2 of 7 IN RESOLUTION OF • OF OF • ELSINORE, APPROVING A REIMBURSEMENT AND OPERATING AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND THE CITY OF LAKE ELSINORE AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE WHEREAS, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ( "oversight Board ") has been appointed pursuant to the provision of Health and Safety Code Section 34179; and WHEREAS, Health and Safety Code Section 34180(h) requires Oversight Board approval for any request by the Successor Agency to enter into an agreement with the City; and WHEREAS, the City Council, as Successor Agency to the Redevelopment Agency of the City of Lake Elsinore desires to enter into a Reimbursement and Operating Agreement by and between the City of Lace Elsinore and the City of Lake Elsinore, as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (the "Reimbursement and Operating Agreement "); and WHEREAS, the proposed Reimbursement and Operating Agreement was presented to the Oversight Board for its consideration at a regular meeting of the Oversight Board held on April 24, 2012, and was approved by the oversight Board at that meeting. DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The oversight Board, at its regular meeting of April 24, 2012, reviewed, considered and approved the Reimbursement and operating Agreement by and between the City of Lake Elsinore and the City of Lake Elsinore, as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore. SECTION 2. The Reimbursement and Operating Agreement as set forth in Exhibit "A" attached hereto and by this reference incorporated herein, is hereby approved. SECTION 3. The Mayor is hereby authorized to execute the Reimbursement and Operating Agreement and the Interim City Manager, or his designee, shall be authorized to take all necessary actions with respect to the Reimbursement and Operating Agreement on behalf of the City. Page 3 of 7 CITT' COUNCIL RESOLUTION NO. 2012-019 Pa 2 of 3 PASSED, APPROVED AND ADOPTED at a re meetin of the Cit Council of the Cit of Lake Elsinore, held this 24th da of April, 2012 b the followin vote: I a ' A : 06 MM'sn' iac BARBARA LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE Pa 4 of 7 1 :14 1 • This Reimbursement and Operatin A ( "A g reement") is made an entered into this da of April, 2012, b and between the Cit of Lak Elsinore, a municipal corporation ( "Cit y " ) and the Cit of Lake Elsinore, as Successo A of the Redevelopment A of the Cit of Lake Elsinore, a public bod actin under the authorit of Part 1.85 of the California Health and Safet Code ( "Successo A FEW, A. The Cit of Lake Elsinore, actin pursuant to the provisions of Part 1.85 of the Health and Safet Code ( Part 1.85), has declared itself as the Successor A within the meanin of Part 1.85. An capitalized terms that are not specificall defined in this A shall have the same meanin as set forth in Part 1.85. B. In accordance with Section 34171 of Part 1.85, the Successor A is entitled to an Administrative Cost Allowance that is pa from propert tax revenues allocated to the Redevelopment Obli Retirement Fund ( RORF) b the count Auditor-Controller. C. On April 10, 2012, the Successor A and its Oversi Board approved an Administrative Cost Bud which includes certain Cit Staff Support Costs and other operatin costs which ma be supplied b the Cit From time to time hereafter, the Successor A and its Oversi Board are expected to approve additional Administrative Cost Bud in six month increments for the operation of the Successor A D. To ensure the effective implementation of Part 1.85, Cit and Successor A desire to enter into this a to allow the Successor A utilization of Cit staff, facilities, and administrative resources (collectivel "Cit Services") in consideration for the Successor A timel pa to Cit of a portion of the Administrative Cost Allowance. The Successor A pa for Cit Services shall not include the Cit pro mana or staff costs associated with specific Enforceable Obli listed on either the Enforcement Obli Pa Schedule or Reco Obli Pa Schedule ( collectivel y , " Project Costs"), which shall be char separatel to the Successor A and reimbursed separatel b the Successor A from the propert taxes deposited into the RORF. E. Althou the Successor A is not a separate public a from the Cit the Cit as Successor A has established accounts for the Successor A separate from Cit accounts, includin accounts separate from the Cit General Fund, and therefore this A is intended to document the financial relationship between the Cit and the Successor Agency. a 1 211 NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, Cit and Successor A a as follows: Section 1. Access to City Personnel and Facilities. Effective Februar 1, 2012, the Successor A shall be authorized to use Cit Services included in an Administrative Cost Bud approved b the Successor A and its Oversi Board to implement the Successor A duties under Part 1.85. Cit shall maintain an accountin of the costs of providin such services to the Successor A Section 2. Reimbursement for Use of city Services. In consideration for the Successor A utilization of Cit Services, Successor A shall pa to the Cit an appropriate portion of the Administrative Cost Allowance allocated to the Successor A under Part 1.85. The Administrative Cost Allowance monies shall be paid to the Cit no later than ten (10) business da from the deposit of propert taxes into the RORF b the Count Auditor-Controller. Section 3. Project Costs. Project Costs shall be char separatel to the Successor A and reimbursed separatel b the Successor A from the propert taxes deposited into the RORF. Section4. Notice of Default. If either part defaults with re to the provisions of this A the non-defaultin part shall serve written notice of such default upon the defaultin part If the default is not cured b the defaultin part within ninet (90) da after service of the notice of default, or if the default is not commenced to be cured within thirt (30) da after service of the notice of default and is not cured promptl within a reasonable period of time after commencement, the defaultin part shall be liable to the non-defaultin part in accordance with applicable law; provided, however, that nothin herein shall obli the Cit to make an pa or transfer of an assets from the Cit General Fund, except in the form of Cit Services provided to the Successor A and nothin herein shall obli the Successor A to make an pa or transfer of assets from an source other than the RORE. Section 5. No Waiver of Reservation of Ri or Limitation of Li Notwithstandin an to the contrar herein, nothin herein shall be deemed as a waiver b Cit or Successor A of an reservation of ri to challen the application or effectiveness of Assembl Bill No. 26 (2011-2012 Vt Ex. Sess.), or an portions thereof, or as a waiver of an limitations of liabilit g ranted to- Cit and Successor A under AB x1 26. IN WITNESS THEREOF, the parties have executed this a as of the ,tate first above written. ATTEST: Vir Bloom, Cit Clerk ATTEST: Vir Bloom, Clerk to Cit of Lake Elsinore as Successor A [Q k rael 2 I� Brian Tisdale, Ma Barbara Leibold, Cit Attorne CITY OF LAKE ELSINORE, AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE Brian Tisdale, Ma Cit of Lake Elsinore as Successor A Barbara Leibold, Counsel to Cit of Lake Elsinore as Successor A Pa 7 of 7