RES-2014-168 RESOLUTION N0. 2014-168
A RESOLUTION OF THE CIT�' COUNCIL OF THE CITY Ot=
ANAHEIM �APPROVING A COOPERATIQ��' AGREEMENT
�� �(LOAI�I AGREEMENT PURSLANT TO HEALTH c� SAFETY
CODE SECTION 34I73(h1—ROPS lI FRIOR PER.IOD
ADJL'STMENT) BY AND BETV��EEN T�IE CIT�' OF
ANAHEIM AND THE SUCCESSOR AGENC�' TO THE
ANAHEIM REDEVELOPMENT AGENCY, INCREASING THE
COIvIMUNITY DE��ELOPMENT DEPARTMENT BUDGET
AND MAKING CERTAIN FINDINGS Il�; ACCORDANCE
THEREWITI I
WHEREAS, the City of Anaheim ("City") is a munieipal corporation and charter city
organized and opErating under the laws of the State of Californi�; and
WHEREAS, the Successor Agency to the Anaheim Redevclopment Agency ("Successor
Agency") is a public entity corporate and politic, organized and operatiilg under Part 1.85 ot
Division 24 of the Dissolution Act (as definEd below): aild
WHEREAS, the Anaheim Redevelopment Agency ("former Agency") previously was a
California public body, corporate and politic, duly formed by the City Council of the City
("City Council") and oraanized, existing and exercising the powers of a conimunity
redevelopment agency under the Calif.ornia Community Redevelopment Law, Health & Safery
Code Section 33000, et seg.; and
WHEREAS, Assembly Bi11 �l 26 ("AB xl ?6") chaptered and effective on June 27, 201 1
�dded Parts 1.8 ai�d 1.&5 to Division 24 of the California Health R Safety Codc and which laws
were modified. in part, and deterniined constitutional by the California Supreme Court in the
petition Calif��rizia Redevelopment Assc�ciation, et al. 1�. A��a Matosarrtos, et al., Case
No. S 194861 ("Matosantos Decision"}, which Iaws and court opinion caused the dissolution of
all red�velopment a«encies and winding down of the affairs of fonner redevelopment agencies;
thereafter, sucl� laws were amended further bv Assembly Bill 1484 ("AB 14�4") that was
chaptered and effective on June ?7, 2012 (together AB xl 26, the Matosantos Decision, and
AB 1484 are refen�ed to as the "Dissolution Act"); and
WHEREAS, as of February l., 201?, the forn�er A�ency became a dissolved community
redevelopment agency pursuant to the Dissolution Act: and
WHEREAS, as of and on and after February 1, 20I?, the Successor Agency is
performing its functions as the successor agency under the Dissolution Act to administer the
enforceable obligations of the fonner Atrency and is engaged in activities necessary and
appropriate to wind down the activities of the former Agency's Anaheim Merged
Redevelopment Project that was originally adopted and amended by ordinances of the Citv
Council, a�1d otherwise unwind the forn�er A�e��c��'s affairs, all subject to tl�e review and
approval by a seven-m�mber Oversi��ht Board formed thereunder: and
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WHEREAS, pursuant to the Dissolution Act, the Successor A,ency prepares and submits
a Reco�lized Obligation `Pavment Schedule ("ROPS") for each si�-month period (January 1
throu�h June 30 and Julv 1 throu�h Dec�rnber 31), and includes on each ROPS the estimated
payments to be made b}� the Successor A�ency for eacl� enforceable obliaatioi7 durinn cach
applicable six-n�onth ROPS period; and
WHEREAS, the 5uccessor A�ency pr;pared a ROPS for the period from July 1 through
December 31, 2013 (referred to as "ROPS 13-14A"), which ROPS 13-14A was approved by the
Oversight Board and the Department of Finance ("DOF"j; and
WHEREAS, the ROPS 13-14A reported a"pnor period adjustment" from the ROPS
period for July 1 throu�h December 3l, 2012 ("ROPS II") in the amount of �I,033,181, whicl�
number was received from and confinned bv the Orange County Auditar-Controller ("GAC");
and
W�-IEREAS, the initial DOF letter approvin� ROPS 13-14A, dated April 8, 2013 also
reflected the prio: period adjustment an�ount of �1,Q33,181, coi7firmin� the prior period
adjustment amount in the ROPS 1�-14A; and
WHEREAS, the Successor Agency and DOF heid a meet and confer to discuss several
items on the ROPS 13-14A which were disapproved by DO.�' in the April S, 2013 letter;
however, the prior period adjustment amount set forth in ROPS 13-14A and the April 8, 2013
lctter was not in dispute and was therefore not a topic of discussion during this meet and confer
sessian; and
WHEREAS, after the meet aild confer session, DOF issued a final determination letter
dated Ma}� 17, ?013 which, witliout explanation, stated a prior p�riod adjustment amount of
$1,986,585 (an increase of $953,404 ovEr the prior pei acijustment amount in the�
ROPS 13-14A and the April 8, 2013 letter); and
WHEREAS, despi�e repeated attempts to explain the mistake to DOF representa�ives,
DOF has refused to correct the error in the May 17, 2013 Ietter and, as a result, tl�e Successor
A�ency is carrying a de�cit of $9�3,404 ("Deficit Amount") in each ROPS period and is likely
to default on enforceable obtigations durin� the upeoming ROPS 14-15A period; and
WHEREAS, to avoid a default tmder its approved enforceable obiigations, thc Successor
Agency nas requested a loatl from the City in the anlount of the� Deficit Amount; and
WHEREAS, Scction 34173{h� of the Dissc�lution Act authorizes the Ci�y to "loan or b ant
funds to [the Successor Agency] for adininistrative costs, enforceable obligations, or project-
related expenses at the [CitS�'s] discretioii, but the receipt and use of these funds shall be i°eflected
on the Recognized Obiigation Payment Schedule or the administrative budget and therefore are
subject to the oversight and approval of the �versight board_ An enforceable obligation shall be
deemed to be crcated for the repayinent of those loans"; and
WHEREAS, as authorized by and pursuant to Section 34173(h) of the Dissoiution Act,
the Ciry� desires to assist the Successor Agency by providing a loan to the Successor Agency in
the amount of the Deficit Amount, for use in paying approved enfarceable obligations of the
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Successor A�ency shown oil thc ROPS 14-1�A, aci<nowledgiilg that the deficiencv bc�in�
addressec� and con t�v th� Agseen�ent (defined below} originated in the ROPS I1-14A
period and has been carricd�rorward into eacl� R.OPS period thereafter; and
WHEREAS, the Successor At�ency's obli�=,ation to repa�� the subject loan to the City is set
fortl� iz1 a Cooperation Agreement (Loan Agreen�ent pursuant to Healt-h & Safety Code
Section 34173(hj—ROPS II I�rior Period Adjustment} (`'Agreement") which shail be subject to
approval by the Oversi�ht Board and DOF and shalI be i�lcluded on the ROPS for tl�e period
from January l, 201� to June 30, 2015 ("ROPS 14-15B"), which ROPS 14-15B is subject to tlie �
approval of the Oversi�ht Board and DOF; and
WHEREAS, provicled that tl�e A�reemcilt is approved as an enforceable. obli�atton on
ROPS 14-1 �B, the Successor A�ei1c}� shall repay all amounts disbursed by the City to or on
behalf of the Successor A�ency from RPTTF monevs received bti� the Successor Agency
pursuant to ROPS 14-15B and subsequent ROPS untii repaid in full; and �
WHEREAS, the Citv CoL�ncil desires to approve the A�eement and to dirccf tlle
Successor A�ency to transmit the Agreement to the Oversight Board and the DOF.
NOW, THEREFORE, BE IT RESOLVED .BI' THE CIT�' COUNCIL OF THE CIT�'
OF ANAHEIM AS FOLLOWS:
� Section 1. The foreQoinb reeitals are. incorporated into this Resolution by this
reference, and constitute a material pari of this Resolution.
Section 2. The City Council hereby approves fhe Agreement, witl� such changes as
may be mutually agreed Etpon by the Community Development Director (or his duly autliorized
representative), the Executive Director of thE Successor Agency and the City Attorney, as are
minor and in substantial conformance with the form of the Agreeinent submitted he� The
Communitv Development Directar and the City Clerk are hereby autilorized to execute and attest
the Agreen�ent on behalf of ti-�e City. In such regard, the Community Development Director (or
his duiy authorized repres�ntative j is authorized to sign the final version of the Agreement after
coinpletion of any such noi�-substantive, minor revisions. Copies of the final form of the
Agreemcnt, wl�en duly executed and attested, sl�all be placed on fit� in th� off ce of the City
C1erk. Further, the Communit_y Development Director (or hi.s du}y authorized representative) is
authorized to imptement the Agreement and take all further actions and execute all documents
referenced tberein and/or necessary and appropriate to make the City Loan (defined in the
Agreeinent} and otherwise carry ozit the transaction contemplated by the Agreement. The
Co�mmunity Development Director (or his duly authorized representativej is hereby authorized to
the extent necessary during the implementation o� tl�e Aareement to make technical or minor
changes and interpretations thereto aftcr execution, as necessary to properly implement and carry
out the Agreeme��t, provided any and all such chan�res sha11 not in any manner materially affECt
the ri�rl�ts ai�d obligations of the City or tl�e ma�imum City Loan amount provided under tl�:
Agrecment approved hereb}�.
Section 3. In addition to tl�e authorization of Section 2 above, the Communitv
Development Director is hereby authorized, on behalf of the City, to sign all other documents
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necessarv or apprapriate to carry out and implement the ���reement, incluciin� causing the
issuance of warrants in implementation thereto, and to administer tile Citv's obligations,
responsibilities and duties to be perforn�ed und�r the A�reement.
Sectron 4. The City Council recognizes that the A�;eement is and witl be subject to
review and approval by the Oversight �oard to the Successor Agency and the State oi' Caiifornia,
Department of Finance pursuant to the Dissoiution Act. in this regard the C�iry Council authorizes
transmittal of tl�e Agreement and anv oth��er related documentation required and the postin� of a
true copy of the Agreement on the Successor A�Tency w�bsite }�ursuant ther�to.
Section 5. The Citv Council hereby providcs for a one-tinze inerease in the currEnt
fiscal year budget of the Communitv Developmeni Depan7neni in th:, amount of the� City Loan,
which shall be the source of the proceeds of the Citv Loan.
Section 6. The City Clerk shall certif_y to thc adoptioi� of tl�is Resolution.
(Remaincler of page interitionalll� left hZanK; sagnatures on nexf page)
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DOCSOC? 1678 I 6� v3!20039 i-0OU I
THE FOREGOING RESOLL1TlON is approved aud adopted b5� the City Council of thc
Citv of r'u�aheim this 23rd day oi Se�tember, �014, b�,� the foliowin� roll call vote:
Al'ES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring
NOES: None
ABSENT: N�ne
ABSTAIN:None
CITY OF ANAHEIM
Bv:
AYOR O THE 1TY OF ANA�-IELM
ATTES .
CITY CLERK OF THE CITY OF ANAHEIM
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