RPVCCA_CC_SR_2012_04_03_05_Agreement_with_Successor_AgencyCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
CAROL LYNCH,CITY ATTORNEY ~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION ~
TECHNOLOGY
APRIL 3,2012
COOPERATIVE AGREEMENT WITH SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY
CAROLYN LEHR,CITY MANAGER d2--
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information
Technology ~U)
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No.2012-,approving the
execution of a Cooperative Agreement for Advance and Reimbursement of Administrative,
Overhead,and Other Expenses by and between the City and the Successor Agency.
DISCUSSION
Upon dissolution of the Rancho Palos Verdes Redevelopment Agency on February 1,2012
pursuant to AB X1 26,the Successor Agency to the Rancho Palos Verdes Redevelopment
Agency was constituted and is governed by a Board of Directors consisting of the members
of the City Council.
Pursuant to AB X1 26,the Successor Agency is required to undertake a number of actions,
including winding down the affairs of the former Redevelopment Agency.For example,the
Oversight Board for the Successor Agency may direct Staff to perform work in furtherance
of the Oversight Board's duties and responsibilities under AB X1 26 and the Successor
Agency must pay for all of the costs of meetings of the Oversight Board.In addition,the
Successor Agency will have a number of ongoing responsibilities,such as paying
enforceable obligations of the former Redevelopment Agency and preparing an
administrative budget and Recognized Obligation Payment Schedule (ROPS)for each six-
month fiscal period.
Each proposed administrative bUdget must include a proposal for arrangements for
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COOPERATIVE AGREEMENT WITH SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY
April 3,2012
Page 2 of 2
administrative and operations services provided by the City or another entity.The attached
Cooperative Agreement for Advance and Reimbursement of Administrative,Overhead and
Other Expenses by and between the City and the Successor Agency provides for the
Successor Agency to use the City's Staff,facilities,and other resources for the
administration and operations of the Successor Agency.Pursuant to the Agreement,the
City will advance these costs to the Successor Agency and the Successor Agency will
reimburse the City for such advances.The Agreement must be approved by the Oversight
Board for the Successor Agency.The attached Resolution approves execution of the
Agreement by the City.
FISCAL IMPACT
AB X1 26 provides for the Successor Agency to receive an annual Administrative Cost
Allowance of not less than $250,000.The Administrative Cost Allowance will exclude any
administrative costs that can be paid from sources other than property tax.The
Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay
the former Redevelopment Agency's enforceable obligations.
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RESOLUTION NO.2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES APPROVING THE EXECUTION OF A
COOPERATIVE AGREEMENT FOR ADVANCE AND
REIMBURSEMENT OF ADMINISTRATIVE,OVERHEAD AND OTHER
EXPENSES BY AND BETWEEN THE CITY AND THE SUCCESSOR
AGENCY TO THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH
RECITALS:
A.Pursuant to Part 1.85 of the Community Redevelopment Law
(commencing with Health and Safety Code Section 34170),the Successor Agency to
the Rancho Palos Verdes Redevelopment Agency ("Successor Agency")is required to
undertake a number of actions,including winding down the affairs of the former
Redevelopment Agency pursuant to Health and Safety Code Section 34177(h).
B.In connection with the administration and operations of the Successor
Agency,the Successor Agency is and will be utilizing the staff,facilities,and other
resources of the City.The City Manager of the City serves as Executive Director of the
Successor Agency,the Director of Finance &Information Technology serves as
Finance Officer of the Successor Agency,and the City Clerk serves as Secretary to the
Successor Agency.Planning,finance,engineering,public works,and other City
departments devote and are expected to devote substantial time with respect to the
administration and operations of the Successor Agency,including gathering information
relating to the former Redevelopment Agency's enforceable obligations,conferring with
public officials representing governmental agencies,and undertaking other activities in
connection with administration and operations of the Successor Agency.
C.By providing and making available to the Successor Agency the staff,
facilities,services,and other resources of the City,including,without limitation,
consultants,legal counsel,office space,equipment,supplies,and insurance,necessary
to the administration and operations of the Successor Agency,the City has advanced
and will continue to advance the cost of the foregoing to the Successor Agency.The
City and the Successor Agency desire to enter into an agreement to provide for an
appropriate method of reimbursement of such advances by the Successor Agency to
the City.
D.Pursuant to Health and Safety Code Section 34171 (d)(1 )(F),contracts or
agreements necessary for the administration or operation of the Successor Agency are
enforceable obligations and pursuant to Health and Safety Code Sections 34178(a)and
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34180(h),the Successor Agency may enter into agreements with the City with the
approval of the oversight board for the Successor Agency (the "Oversight Board").
NOW,THEREFORE,THE CITY COUNCIL HEREBY FINDS,DETERMINES,
RESOLVES,AND ORDERS AS FOLLOWS:
Section 1.The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2.The City Council hereby approves the Cooperative Agreement for
Advance and Reimbursement of Administrative,Overhead and other Expenses by and
between the City and the Successor Agency attached hereto as Exhibit A and
incorporated herein by reference (the "Agreement")and the Mayor is hereby authorized
and directed to execute the Agreement.
Section 3.The officers and staff of the City area hereby authorized and
directed,jointly and severally,to do any and all things which they deem necessary or
advisable to effectuate this Resolution,and any such actions previously taken by such
officers and staff are hereby ratified and confirmed.
PASSED AND ADOPTED this 3rd day of April,2012.
Mayor
ATTEST:
City Clerk
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EXHIBIT A
Cooperative Agreement for Advance and Reimbursement of
Administrative,Overhead and other Expenses
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COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF
ADMINISTRATIVE,OVERHEAD AND OTHER EXPENSES
This COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT
OF ADMINISTRATIVE,OVERHEAD AND OTHER EXPENSES (this "Agreement")is
entered into as of February 1,2012,by and between the City of Rancho Palos Verdes
(the "City")and the Successor Agency to the Rancho Palos Verdes Redevelopment
Agency (the "Successor Agency").
R E CIT A L S:
A.The Successor Agency is required to undertake a number of actions pursuant to
Part 1.85 of the Community Redevelopment Law (commencing with Health and
Safety Code Section 34170)("Part 1.85"),including winding down the affairs of
the former Rancho Palos Verdes Redevelopment Agency ("Agency")pursuant to
Health and Safety Code Section 34177 (h).
B.Pursuant to Health and Safety Code Section 34171 (d)(1 )(F),contracts or
agreements necessary for the administration or operation of the Successor
Agency are enforceable obligations.
C.Pursuant to Health and Safety Code Sections 34178(a)and 34180(h),with the
approval of the oversight board,the Successor Agency may enter into
agreements with the City.
D.In connection with the administration and operations of the Successor Agency,
the Successor Agency is and will be utilizing the staff,facilities,and other
resources of the City.
E.The City Manager of the City serves as Executive Director of the Successor
Agency,the Director of Finance &Information Technology serves as Finance
Officer of the Successor Agency,and the City Clerk serves as Secretary to the
Successor Agency.Planning,finance,engineering,public works,and other City
departments devote and are expected to devote substantial time with respect to
the administration and operations of the Successor Agency,including gathering
information relating to the Agency's enforceable obligations,conferring with
public officials representing governmental agencies,and undertaking other
activities in connection with winding down the affairs of the Agency.
F.By providing and making available to the Successor Agency the staff,facilities,
services,and other resources of the City,including,without limitation,
consultants,legal counsel,office space,equipment,supplies,and insurance,
necessary to the administration and operations of the Successor Agency,the
City has advanced and will continue to advance the cost of the foregoing to the
Successor Agency.
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G.The City and the Successor Agency desire to enter into this Agreement to
acknowledge the foregoing recitals and to provide for an appropriate method of
reimbursement of such advances by the Successor Agency to the City.
NOW,THEREFORE,THE PARTIES DO HEREBY AGREE AS
FOLLOWS:
Section 1.The City shall make available to the Successor Agency its
staff,facilities,services,and other resources,including,without limitation,consultants,
legal counsel,office space,equipment,supplies,and insurance,necessary to the
administration and operations of the Successor Agency.The Successor Agency shall
have access to the foregoing staff,facilities,services,and other resources of the City.
Section 2.The value of the City staff,including all employee retirement
and other benefits,facilities,services,and other resources of the City,including,without
limitation,office space,equipment,supplies,and insurance,necessary to the
administration and operations ofthe SuccessorAgency made,and to be made,
available to the Successor Agency for each six~month fiscal period beginning with the
fiscal period commencing on January 1,2012 and ending onJune 30,2012,
determined in accordance with Section 3 hereof,shaHconstitute an advance to the
Successor Agency by the City for each six~monthfiscal period,to be repaid in
accordance with Section 4 of this Agreement.
Section 3.Following the end of each six~month fiscal period,beginning
with the fiscal period commencing on January 1,2012 and ending on June 30,2012,
the City Managershall prepare and presentto the Successor Agency an invoice for (i)
the value of City staff,including all employee retirement and other benefits,based on
time records prepared by City staff,which shall describe the time devoted exclusively to
matters directly related to the administration and operations of the Successor Agency;
(ii)the value of consultants and legal counsel based on invoices for services devoted
exclusively to matters directly related to the administration and operations of the
Successor Agency;(iii)the fair rental value of office space and equipment made
available to the Successor Agency;and (iv)the value of supplies,insurance and other
services and facilities provided by the City to the Successor Agency.
Section 4.Within a reasonable time after the City submits an invoice to
the Successor Agency pursuant to Section 3,the Successor Agency shall pay to the
City the amount of the invoice from available funds of the Successor Agency.In the
event that insufficient funds are available to the Successor Agency,any unpaid amounts
shall be carried over to the next six~month fiscal period.
Section 5.The parties hereto agree to take all appropriate steps and
execute any documents which may reasonably be necessary or convenient to
implement the intent of this Agreement.
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Section 6.Each party shall maintain books and records regarding its
duties pursuant to this Agreement.Such books and records shall be available for
inspection by the officers and agents of the other party at all reasonable times.
Section 7.This Agreement is made in the State of California under the
Constitution and laws of the State of California,and is to be so construed.
Section 8.This Agreement will be become effective upon approval of
the Oversight Board to the Successor Agency.
Section 9.This Agreement may be amended at any time,and from time
to time,by an agreement executed by both parties to this Agreement and approved by
the Oversight Board to the Successor Agency.
SUCCESSOR AGENCY TO THE _
By _
Chair
ATTEST:
Secretary
CITY OF _
By _
Mayor
ATTEST:
City Clerk
APPROVED:
Date
Oversight Board to the Successor
Agency to the Rancho Palos Verdes
Redevelopment Agency
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