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HomeMy WebLinkAboutC32140 Cooperative Agreement for Advance Reimbursement and Other Expenses - Joint ConsiderationCITY OF PALM DESERT/SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY JOINT CONSIDERATION STAFF REPORT 2012-60 REQUEST: ADOPT CITY RESOLUTION NO. AND SUCCESSOR AGENCY RESOLUTION NO. SA -RDA 009 APPROVING THE EXECUTION OF A COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD, AND OTHER EXPENSES BETWEEN THE CITY AND THE SUCCESSOR AGENCY, AND TAKING CERTAIN OTHER ACTIONS SUBMITTED BY: Janet M. Moore, Director of Housing DATE: August 23, 2012 CONTENTS: Resolution No. 2012-60 Resolution SA -RDA 009 Cooperative Agreement Recommendation That the City Council and Agency Board: Waive further reading and adopt City Resolution N3012-60and Successor Agency Resolution No. 009 approving the execution of a Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead, and Other Expenses between the City and the Successor Agency, and taking certain other actions. Executive Summary Approval of the Cooperative Agreement officially allows the Successor Agency to use the City's staff, facilities, and other resources for the administration and operations of the Successor Agency and for the Successor Agency to reimburse the City for such advances. Background Upon dissolution of the Palm Desert Redevelopment Agency on February 1, 2012 pursuant to AB X1 26, the Successor Agency to the Palm Desert 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 related to winding down the affairs of the former Redevelopment Agency. For example, the Oversight Board may direct the staff of the Successor Agency 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 debt service on enforceable obligations of the former Redevelopment Agency and preparing an administrative budget and Recognized G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Staff Report for Cooperative Agreement - 8-23-12.docx Staff Report Approving Cooperative Agreement August 23, 2012 Page 2 of 2 Obligation Payment Schedule (ROPS) for each six-month fiscal period. Allowable administrative expenses likely include, among others, the value of City staff, including employee retirement and other benefits, necessary for the administration and operations of the Successor Agency; and the cost of other resources of the City necessary for the administration and operations of the Successor Agency, such as office space, supplies, equipment, utilities, and insurance. Staff recommends that the Successor Agency and the City enter into an agreement whereby the City will advance these costs to the Successor Agency. The attached Resolution also approves the Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and Other Expenses between the City and the Successor Agency attached as Exhibit A to the Resolution. As discussed above, the proposed administrative budgets must include proposals for arrangements for administrative and operations services provided by the City or another entity. The Cooperative Agreement provides for the Successor Agency to use the City's staff, facilities, and other resources for the administration and operations of the Successor Agency and for the Successor Agency to reimburse the City for such advances. The Agreement must be approved by the Oversight Board. Fiscal Analysis The Administrative Cost Allowance is defined as an amount, subject to the approval of the Oversight Board, which is the greater of $250,000 or up to 3% of the property tax allocated for enforceable obligations from the Redevelopment Property Tax Trust Fund by the County Auditor -Controller. The Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay the enforceable obligations as listed on the ROPS. Any reimbursement for resources provided by the City would come out of the funds allocated to the Administrative Cost Allowance. Submitted by: CITYComm A iON ,-� APPR �D EE RECEIVED OTHR J n M. Moore, Director of Housing < 1T♦IV" Appr al: Pau S. Gibson, Director of Finance AYES:' — NOES: ABSENT: ABSTAIN: VERIFIED BY:_ Original on File with City rk's Office Q� M. Wo f) hlmuth, Executive Director `'°'' -5_v BY SA-RD_A o n ON G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\City Staff Report for Cooperative Agreement for Admin Reimb - 8-23-12migi n-i oil cn7.W ♦ T �`, ±. i `: j.� .y q„5 �e3 'a RESOLUTION NO. 2012-60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT 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 PALM DESERT 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 Palm Desert 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 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, pursuant to Section 34177.3(b), the Successor Agency may create enforceable obligations to conduct the work of winding down the former Redevelopment Agency, and pursuant to Health and Safety Code Sections 34178(a) G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\City Council Resolution Approving Cooperative Agreement.DOCX RESOLUTION NO. 2012-60 and 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 23rd day of August, 2012. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK -2- O:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\City Council Resolution Approving Cooperative Agreement.DOCX RESOLUTION NO. SA -RDA 009 RESOLUTION NO. SA -RDA 009 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF A COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD AND OTHER EXPENSES BY AND BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT; 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) ("Part 1.85"), the Successor Agency to the Palm Desert Redevelopment Agency ("Successor Agency") is required to undertake a number of actions related to 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 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 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 pursuant to Section 34177.3(b), the Successor Agency may create enforceable obligations to conduct the work of winding down the former G:\rda\Veronica Tapia\Word Files\StatYReports\Successor Agency\Successor Agency Resolution Approving Cooperative Agreement.DOCX RESOLUTION NO. SA -RDA 009 Redevelopment Agency and pursuant to Health and Safety Code Sections 34178(a) and 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 BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, 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. This Resolution is adopted pursuant to the provisions of Part 1.85. Section 3. The Board hereby approves the Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and other Expenses by and between the Successor Agency and the City attached hereto as Exhibit A and incorporated herein by reference (the "Agreement") and the Chair and Executive Director are hereby authorized and directed, acting singly, to execute the Agreement. Section 4. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may 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 23rd day of August, 2012. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Successor Agency Resolution Approving Cooperative Agreement.DOCX EXHIBIT A Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and other Expenses Exhibit A G:\rda\Veronica Tapia\Word Files\Staf£Reports\Successor Agency\City Council Resolution Approving Cooperative Agreement.DOCX Contract No. C32140 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 August 23, 2012, by and between the City of Palm Desert (the "City") and the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency"). RECITALS: 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 Palm Desert 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 Section 34177.3(b), the Successor Agency may create enforceable obligations to conduct the work of winding down the Agency, including hiring staff, acquiring necessary professional administrative services and legal counsel, and procuring insurance. D. 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. E. 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. F. The City Manager of the City serves as Executive Director of the Successor Agency, the Director of Finance 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. G. 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, -1- GArda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Cooperative Agreement.DOC Contract No. C32140 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. H. 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 of the Successor Agency 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, determined in accordance with Section 3 hereof, shall constitute an advance to the Successor Agency by the City for each six- month fiscal 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, the City Manager shall prepare and present to 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. -2- GArda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Cooperative Agreement.DOC Contract No. C32140 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 PALM DESERT REDEVELOPMENT AGENCY By ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY CITY OF PALM DESERT By ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK -3- GArdaWeronica Tapia\Word Files\Staff Reports\Successor Agency\Cooperative Agreement.DOC Contract No. C32140 Date Oversight Board to the Successor Agency to the Palm Desert Redevelopment Agency -4- GArda\Veronica Tapia\Word Files\Stab Reports\Successor Agency\Cooperative Agreement.DOC