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RES-2014-167 RESOLliTION NO. 2014-167 A RESOLUTION OF THE CITY COUNCIL O� THE CITY OF ANAHEIM APPROVING A COOPERATION AGREEMENT (LOAN AGREEMENT PURSUANT TO HE.�iLTH & SAFE7'Z' CODE SECTION 341 �3(h}—�2,537,36? ROPS IIl PEIZIOD EXCESS EXPE;�TDITUREI B�' AND BETWEEN THE CITY OF ANAHEIM AND THE SUCCESSOR AGENCY TO THE ANAHEIM REDEVELOPMENT AGENCY", INCREASING THE COMMUNITY DE�'ELOPMENT DEPARTMENT BUDGET AND MAKING CERTAI'� FINDTNGS IN ACCORDANCE THEREWITH WHEREAS, the City of Anaheim (`Cit}-") is a municipai colpo,ration and charter city organized and operatin�� undei the laws of the State of California; and WHEREAS, tl�e Successor Aaency to the Anaheim Redevelopment Agency ("Successor Agency") is a public cntity corporate and politic. or�anized and operating under Part 1.85 of Division 24 of tl�e Dissolution Act (as defined below); and WHEREAS, tlie Anaheim Redevelopment Agency ("former Agency") previously was a Caiifornia public body, corporatc and politic, dul_y fomzed by the City Council of the City ("City Council") and organized, existing and exercising the powers of a community redevelopment a�ency under the Califoniia Community Redevelopment La��, Health & Safety Code Section 33000,�e1 seq.; and WHEREAS, Assetnbly Bill al 26 (`AB xl 26") chaptered and effective on June 27, 2011 added Parts 1.8 and 1.8� to Division 24 of the CaIifornia Health & Safety Code and which laws were modified, in part, and determined constitutional by the Califoniia Supreme Court in the petition C�lifor Redevelopnzent Association, et al. v. Ana Matosantos, et al., Case No. S l 94861 ("Matosantos Decision"}, which laws and court opinion caused the dissolution of all redevelopment agencies and winding down of the affairs of former redevelopment agencies; thereaftcr, suel� la�rs werc amended furtiler by Assembly Bill 1484 ("AB 1484") that was chaptered and effective on June 27, 2012 (together AB x 1 26, the Matosantos Decision, and AB 1484 are referred to as the "Dissolution Act"); and WHEREAS, as of February l, 201?, the former Agency became a dissolved community redevelopment agency pursuant to the Dissolution Act; and � WHEREAS, as of and on and after February 1, 2012, the Successor A�ency is perf�rming its funetioi�s as the successor agency tmder the Dissolutioi� Act to administer the enforceable obligations of the fonne�� Agenc_y and is Engaged in �ctivities necessary and apprapi�iate to wind down tlle activities of the former A�ency's Anaheim Mer�ed Redevelop�nent Projecf that was ori�inatly adopted and amended by ordinances of the City Council, and othe� unwind the fonner Agency's affairs. ail subject to the revie�� and approval by a scven-member Uversight Board formed theretmder: and DOCSOC/1677764v3i200391-0000 � WHEREAS, pursuant t� the Dissolution Act. the Successor A�ency prepares ar�d subnliis a Recognized O�ligation Payment Schedule ("ROPS") for each six-month period (Januaiy 1 through June. 3Q and 3ulv 1 through December 3l ), and includes on each ROPS the estitnated payments to be made by the Successor A�ency for each enforceabie obli�ation durin� eacn applicable six-month ROPS period: and WHER.EAS, the Saccesso�� Age�lcy prepared a ROPS for thc period fron7 Ja��uary I throu�=h Jtu1e 30, 201 �(referred to as "ROPS II.I"), which ROPS IIl was approved bv tl�e Oversight I3oard and the� Department of Finance ("DOF") to include ��on-administrative expenditures of $20,508,O18 and an administrative� allowance (and approved administrarive expenditures) of $1,069,6?3; ai�d WHEREAS, only �] 4,404,597 of revenue from the Redevelopment Property Tax Trust Fund ("RPTTF") was available. to the Suceessor Agencv for expenditures durin� the ROP5 III period; however, the Successor Agency had moneys on hand, from (a.) collected rents and interest inconle and (b} surplus RPTTF of �1,033,181 from the "ROPS II" period (July 1 th� December 31, 2012) that was not distributed to taxing a�encies due to the projected insufficiency in the ROPS III period (colleetively, "Mone_ys On Hand") ; and WHEREAS, the Successor Age��cv used its Moneys On Hand to pay an additional �2,537,362 for approved enforceable obligations durin� the ROPS III period, for a total eYpenditure durin� that period of $16,941,9�9; and WHEREAS, DOF requires successor agencies to use specific electronic forms for eael� ROFS; and VVHEREAS, the required ROPS form for the period from Juiti� 1 throuah Decenlber 33, 20] 3("ROPS 13-14A"} was different from the fonn used for ROPS III and priar ROPS; specifically. the ROPS 13-14A form required the Successor Agency to conduct a true-u}� of over- and under-expenditures on an item-by-item basis, wl�ereas prior ROPS forms only compared aetual and authorized expenditures on a cumulative, total basis durin� eacl� ROPS period; and WHEREAS, during the ROPS III period, in reliance on the prior ROPS reconciiiation practice (eomparin� estimated and actual cumulative expenditures as opposed to estimated and actua.l expenditures oi� eacl� line item}, the Successor Agency madc expenditures during the ROPS lIl period on certain enforceable obligations in excess of the amounts authorized far expenditure during the ROPS IIi period for such line items (which in some cases was $0); and WHEREAS, the Successor Agenc_y n7ade tota3 excess expenditures during the� ROPS Ifl period of �?,537,359 ("ROPS III Period Excess Expendi�ire"), after rakinb into account an incorrect entry in Iine 93 of ROPS ItI, stating thai � 177,534 was available for payment of that enforceable obli�ation; and WHEREAS, in all cases, actual expenditures on enforceable obligations durin� the ROPS IIl period were within the overall payment amounts stated u1 the ROPS for such enforceable obli�ations; further, the total cumulativic expenditures made by the Successar Agency durinb the ROPS III period was within the total amount of RPTT�' that the Successor � DOCSOG167;764v3i200391-OOUO Agency was autllorized to receive uilc�e3 ROPS III, »otwithstandin� that insufficient P�.PTTF was available for payment of sucll expenditures; and V��HEREAS, based on ROPS 13-14A, which reduced hPTTF avail�bie to t}lc Successo� Ag�ncy by the ROPS lIl Period Ercess Expenditure amount but dic� not credit RPTTF for any savin�s o� undei by the Successor A�eilcy dunn� the ROPS IiI period, DO�' approved au RPTTF distribution to tlie Successor Agencv that was iess than the alnouni of approved expenditures bv tl�E ainoui�t of thc ROPS IIl P�riod Excess Expcndii�u and WHERE.AS, the combined effect of the ROPS ill Period Excess Expenditure from Moneys Oi1 Hand durin� the ROPS III period and the change in t}7e ROPS 13-] 4A form is that the Successor Agency has carried a deficiency in the a�motmt of the ROPS III Period Excess Expenditure, which DOF does not recognize: and WHEREAS, in connection with each �ROPS revie��� after the ROPS 13-14A, DOF has declined to approvE� RPTTF distributions to the Successor AgencS- to covcr this defieienc}� amount; and WHEREAS, to avoid a deiault under its ap�proved enforceable obligations durina the ROPS 1�-1 5A period, the Successor A�ency has requested a loan from �he Ciry in the amouni of the ROPS Ill Period Excess Expenditlire; and � WHEREAS, 5ection 34173(h) of the Dissolution Act authorizes the City to "loan or grant fu��ds to [thc Successor Abency] for admulis�rative costs, enforceable obli�ations, or project- related expenses at� tlzc [City's] discretion, but the receipt and use of these funds sl�all be reflected on the Recoonized Obligation Payment Schedule or tl7e administrative budget and tberefore are subject to the oversi�ht and approval of the oversi�rl�t board. An enforceabie obligation sl�all be deemed to be, created for tlle repayment of those loans"; and WHEREAS, as autilorized by and pursuant to Section �4173(h) of the Dissolution Act, the City desires to assist the Suecessor Agency by providing a loan to the Successor Agency in the amount of the ROPS IIl Period Excess Expenditure, for use in paying approved enforeeable oblt�ations of the Successol Agenc�� shown on the ROPS 14-15A, aclu7owledging that the deficiency being addressEd and corrected by the Agreeil�ent (defined below) originated in the. ROPS III period and has be;en carricd forward into each ROPS period thcreaficr; and W�lEREAS, the Successor AQency"s obligation to re.pay the subject loan to the City is set forth in a C;ooperation Agreement (Loan Agreement pursuant to Health & Safcty Code Seetion �4173(l�)—$2,537362 ROPS III Period Excess Expenditure) ("Agreetnent") which shall be subject to approval by the Oversight Board and DOF and shall be iilcladed on the ROPS for the period from .ianuary l, 2015 to June 30, 2015 ("ROPS ]4-15B"), which ROPS 14-15B is subject to the approval of the Oversi�ht Board and DOF; and WHEREAS, provided that t1�c A��eement is approved as an cnforceable obli�ation on � ROPS 14-1 �B, the Successor Agency shall repay all amounts disbursed by the City to or on bchalf of thc Successor Agency fro�n KPTTF moneys received by the Successor A�renc}� pursuant to ROPS 14-15B and subseguent ROPS until repaid in full; and J DOCSOC/ I 677764��3/2003 )1-0000 WHEKEAS, thc City Council desires to approve tl�e A�� and to dircct the Successor Agencv to transmit the A�reement t� the Ovcrsi�rht Board and th� DO�'. NOV�', THEREFORE, BE IT R�.SOLVcD BY THE CITY COUNCIL OF THE CITY OF ANAHElN1 AS FOLLO�'S: Section 1. The foreQoin� recitals are incorporated into this Resotution b�� tl�is rcfcrence, and constit�rte a material part of this Resolution. Section 2. The City Council hereby �pproves the Agreement, with such changes as may be mutual3y agreed upon by the Communiry Development Director (or his duly authorized representative), the Executive Director of the Successar Agency ai�d the City Attorney, as are minar aild in substantial conformance with the fornl of the Agreeinent submittcd h�rewith. Th: Community Development Director and the City Cl:,rl: are hereby authorized to execute and attest the A� on behalf of the Citv. I�� sucl� regard, the C;ommunity Developn�ent Director (or his duly al�thorized representative) is authorized to sign the final version of the A��reeme.nt after � completion of any such non-substantive, minor revisions. Copies of the final form of the Agreement, when duly e�ecuted and attested, shall he placed on file� in the office of tl�e Cit�� Cle��lz. �urther, tlle Conzmunity Develop�nent Directar (or his duly authorized representative) is autl�orized to implement t�ie A�•eenlent and talce all further actions and execute all documents referenced therein and/or necessary and appropriate to make the Cit}� Loan (defined in the A�reement j and other�vise carry out the transaction contemplated by the Agrecmeut. The Community Development Director (or his duly authorized representative) is hereby authorized to the extent necessary during the implementation of the A¢reement to make tecllnical or minor chan�es and interpretations thereto after execution, as necessary to prc�perly implement and carry ollt the A�,�reenlent, provided any and all such c}�anQes s}�all not i» anv mam�er materially affect the rights and obligations of the City or tiie maaimum City Loan amomlt provided under the. A¢reement approved hereb}�. Section 3. ln additioi� to thc autharizatioil of Section 2 above, the Community Devclopment Director is hereby authorized, on behalf of the City, to sign all other documents necessary or appropriate to carry out and im�lement the Agreement, including causing the issuancc of warrants in implementation thereto, and to administer tl�e City's obligations, responsibilities and du�ies to be performed under the Agreement. Sectioi� 4. The City Council recognizes that thc Agreement is and will be subject to review and appi by the Oversight Board to the Successor Agenc}� ai�d the State of California, Department of Finance pursuant to the Dissolution Act, in tlzis regard the City Council autl�arizes trans�nittal of thc Agi and any othcr related docLin�ei�tation required and the postin� of a truc cop}� of the Agreement on the Successor Agency website pL�rsuant thereto. Section 5. T1�e City Couilcil hereby providcs for a onc-time increase in the current fiscal year hudget of the Commui�ity Deveiopment Department ii� the amount of the City Loan, which shall be the source of tl�e proceeds of fl�e City Loan. Sectioi� 6. Thc Cit�� Cler1< shall ccrtify to the adoption of this Resolution. (Re�nainder of pa,� e intentio�iall�� left hlaizfc; signatarres un trext pa�•e) 4 �ocsoci��������4��3r_oo3�1-ouoo THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheinl this 23rd day of �ptember , 2014, by the followind roll call vote: AYES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring NOES: None ABSENT: None A�3STAIN: None CITY OF ANAHEIM Bv: M YOR OF THE .ITY OF ANAHEIIvI ATTEST: CITY CLERK OF THE CITY OF ANAHEIM 5 DOCSOC! 16?7764r3; 2003 )} -OOUO