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Home My WebLink AboutCity Council Agenda Item No SA3CITY OF LADE � L SII`�O�E ' DREAM EXTREMEW SUCCESSO REPORT TO CITY COUNCIL OF THE CITY OF LAKE ELSINORE, AS AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM. PAS' KILROY INTERIM CITY MANAGER DATE: APRIL 24, 2012 A GENCY SUBJECT: ADOPTION BY THE CITY OF LAKE ELSINORE, AS SUCCESSOR R EIMBURSEMENT LAKE ELSINORE, OF A AGREEMENT BETWEEN THE CITY OF LAKE ELSINO AND THE CITY OF LAKE ELSINORE AS SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE I ' M o r, M."o e a llowance By Resolution No. 2012-001 adopted on Januar 10, 2012, the Cit Council elected t become the Successor A of the Redevelopment A of the Cit of Lak Elsinore upon the A dissolution on Februar 1, 2012. Assembl Bill x1 2 provides the Successor A an administrative redevelopment a and administer the Successor A and Oversi Board. I Pursuant to Health & Safet Code Section 341770), the Successor A prepared an administrative bud and submitted it to the Oversi Board for its approval. The administrative bud was approved b the Successor A and the Oversi Board on April 10 20 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. AGENDA ITEM NO. SA3 Page 1 of 7 ADOPTION OF REIMBURSEMENT AGREEMENT April 24, 2012 Pa 2 I , i si 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 project mana or staff costs associated with specific Enforceable Obli listed on the Reco Obli Pa Schedule {RODS). Those project 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 cost 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 nistrative Services Barbara Leibold Cit Attorne Approved b Pat Kilro Interim Cit Mana Attachment: 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 RESOLUTION OF i OF OF • ELSINORE, AS THE SUCCESSOR AGENCY OF REIMBURSEMENT REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING A AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND THE CITY OF AELSINORE AS SUCCESSOR AGENCY TO THE REDEVELOPMENT OF OF r 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 has approved a 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 (the "Reimbursement and operating Agreement "); and WHEREAS, the 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. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, 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 to 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 Successor Agency. Page 3 of 7 SICCESSOR AGENCY RESOLUTION NO. 2012-00_ Pa 2 of 3 1 PASSED, APPROVED AND ADOPTED at a re meetin of the Cit Counc of the Cit of Lake Elsinore, as Successor A of the Redevelopment A of th Cit of Lake Elsinore, held this 24th da of April, 2012 b the followin vote: M I M I I R, IIIJ I'm BARBARA LEIBOLD CITY ATTORNEY ;'-DITY OF LAKE ELSMOZ-Er- Pa 4 of 7 This Reimbursement and Operatin A ("A is made and entered into this da of April, 2012, b and between the Cit of Lake Elsinore, a municipal corporation ( "Cit y " ) and the Cit of Lake Elsinore, as Successor 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 ("Successor A 11611MIRIt"± W09 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 "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 A Pa 5 of 7 0,131 NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, Cit and Successor A a as follows: Section 1 Access to Cit 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 Cit 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 RORF. Section 5. No Waiver of Reservation of Ri or Limitation of Liabilit 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 1st 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. Pa 6 of 7 IN WITNESS THEREOF, the parties have executed • this a as • thA-91 4 ate first above w�fteiv I Brian Tisdale, Ma Vir Bloom, Cit Clerk Barbara Leibold, Cit Attorne CITY OF LAKE ELSINORE, AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSIV.0VEm-- Brian Tisdale, Ma Cit of Lake Elsinore as Successor A ATTEST: Vir Bloom, Clerk to Cit of Lake Elsinore as Successor A non Barbara Leibold, Counsel to Cit of Lake Elsinore as Successor A Pa 7 of 7