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Home My WebLink AboutOB Reso No 2012-007RESOLUTION NO. OB -2012 -007 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING 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 WHEREAS, the Oversight Board of 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, is expected to approve 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, in the form to be presented for approval by the City Council, as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, has been presented to the Oversight Board for its consideration at a regular meeting held on April 24, 2012. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE 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 and considered 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 by the Oversight Board, subject to approval thereof by the Successor Agency. SECTION 3. This Resolution shall take effect from and after the date of its passage and adoption, subject to approval thereof by the Successor Agency. OVERSIGHT BOARD RESOLUTION NO. 2012 -007 Page 2 of 2 PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight Board of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 24th day of April, 2012. Q ^� Brian Tisdale, Chairperson Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore REIMBURSEMENT AND OPERATING AGREEMENT This Reimbursement and Operating Agreement ( "Agreement ") is made and entered into this day of April, 2012, by and between the City of Lake Elsinore, a municipal corporation ( "City ") and the City of Lake Elsinore, as Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, a public body, acting under the authority of Part 1.85 of the California Health and Safety Code ( "Successor Agency "). RECITALS A. The City of Lake Elsinore, acting pursuant to the provisions of Part 1.85 of the Health and Safety Code (Part 1.85), has declared itself as the Successor Agency within the meaning of Part 1.85. Any capitalized terms that are not specifically defined in this Agreement shall have the same meaning as set forth in Part 1.85. B. In accordance with Section 34171 of Part 1.85, the Successor Agency is entitled to an Administrative Cost Allowance that is payable from property tax revenues allocated to the Redevelopment Obligation Retirement Fund (RORF) by the county Auditor - Controller. C. On April 10, 2012, the Successor Agency and its Oversight Board approved an Administrative Cost Budget which includes certain City Staff Support Costs and other operating costs which may be supplied by the City. From time to time hereafter, the Successor Agency and its Oversight Board are expected to approve additional Administrative Cost Budgets in six month increments for the operation of the Successor Agency. D. To ensure the effective implementation of Part 1.85, City and Successor Agency desire to enter into this agreement to allow the Successor Agency's utilization of City staff, facilities, and administrative resources (collectively, "City Services ") in consideration for the Successor Agency's timely payment to City of a portion of the Administrative Cost Allowance. The Successor Agency's payment for City Services shall not include the City's project management or staff costs associated with specific Enforceable Obligations listed on either the Enforcement Obligation Payment Schedule or Recognized Obligation Payment Schedule (collectively, "Project Costs "), which shall be charged separately to the Successor Agency and reimbursed separately by the Successor Agency from the property taxes deposited into the RORF. E. Although the Successor Agency is not a separate public agency from the City, the City, as Successor Agency, has established accounts for the Successor Agency separate from City accounts, including accounts separate from the City's General Fund, and therefore this Agreement is intended to document the financial relationship between the City and the Successor Agency. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, City and Successor Agency agree as follows: Section 1 Access to City Personnel and Facilities Effective February 1, 2012, the Successor Agency shall be authorized to use City Services included in any Administrative Cost Budget approved by the Successor Agency and its Oversight Board to implement the Successor Agency's duties under Part 1.85. City shall maintain an accounting of the costs of providing such services to the Successor Agency. Section 2 Reimbursement for Use of City Services In consideration for the Successor Agency's utilization of City Services, Successor Agency shall pay to the City an appropriate portion of the Administrative Cost Allowance allocated to the Successor Agency under Part 1.85. The Administrative Cost Allowance monies shall be paid to the City no later than ten (10) business days from the deposit of property taxes into the RORF by the County Auditor - Controller. Section 3 . Proiect Costs Project Costs shall be charged separately to the Successor Agency and reimbursed separately by the Successor Agency from the property taxes deposited into the RORF. Section4 Notice of Default If either party defaults with regard to the provisions of this Agreement, the non - defaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured by the defaulting party within ninety (90) days after service of the notice of default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a reasonable period of time after commencement, the defaulting party shall be liable to the non - defaulting party in accordance with applicable law; provided, however, that nothing herein shall obligate the City to make any payments or transfer of any assets from the City's General Fund, except in the form of City Services provided to the Successor Agency, and nothing herein shall obligate the Successor Agency to make any payments or transfer of assets from any source other than the RORF. Section 5 No Waiver of Reservation of Rights or Limitation of Liability Notwithstanding anything to the contrary herein, nothing herein shall be deemed as a waiver by City or Successor Agency of any reservation of rights to challenge the application or effectiveness of Assembly Bill No. 26 (2011 -2012 1 St Ex. Sess.), or any portions thereof, or as a waiver of any limitations of liability granted to City and Successor Agency under AB x1 26. IN WITNESS THEREOF, the parties have executed this agreement as of the date first above written. ATTEST: Virginia Bloom, City Clerk ATTEST: Virginia Bloom, Clerk to City of Lake Elsinore as Successor Agency CITY OF LAKE ELSINORE M Brian Tisdale, Mayor APPROVED AS TO FORM: in Barbara Leibold, City Attorney CITY OF LAKE ELSINORE, AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE in Brian Tisdale, Mayor, City of Lake Elsinore as Successor Agency APPROVED AS TO FORM: Barbara Leibold, Counsel to City of Lake Elsinore as Successor Agency STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, Oversight Board Secretary and City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. OB- 2012 -007 was adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at a regular meeting held on the 24 day of April 2012, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN Chairman Tisdale and Board Members Carlson, Oster, Kelley, Lillibridge and Williams None Vice Chair Schultz None