HomeMy WebLinkAbout12/16/2013 - RESOLUTIONS - 018 RESOLUTION NO. 018
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY APPROVING
A CASH LOAN FROM THE CITY OF PALM SPRINGS TO
THE SUCCESSOR AGENCY, TO BE PLACED ON THE
NEXT RECOGNIZED OBLIGATIONS PAYMENT
SCHEDULE ("ROPS") AS AN ENFORCEABLE
OBLIGATION TO BE PAID FROM THE REDEVELOPMENT
PROPERTY TAX TRUST FUND ("RPTTF"), FOR THE
PURPOSE OF FUNDING AN INSPECTION AND REVIEW
OF THE PHYSICAL CONDITION OF THE PLAZA
THEATRE, A SUCCESSOR AGENCY-OWNED
PROPERTY.
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
("Redevelopment Agency") was a redevelopment agency in the City of Palm Springs
("City"), duly created pursuant to the California Community Redevelopment Law
(Part 1 (commencing with Section 33000) of Division 24 of the California Health and
Safety Code) ("Redevelopment Law"); and
WHEREAS, the Community Redevelopment Agency was responsible for the
administration of redevelopment activities within the City; and
WHEREAS, AB X1 26 and AB X1 27 were signed by the Governor of California
on June 28, 2011, making certain changes to the Redevelopment Law, including adding
Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section
34170) ("Part 1.85") to Division 24 of the California Health and Safety Code which
effectively dissolves the Redevelopment Agency ("Dissolution Act"); and
WHEREAS, under the Dissolution Act, the term "successor agency" was defined
to refer to the Dissolved RDA's Sponsoring Community (the city, county or city and
county that formed the Dissolved RDA), unless that Sponsoring Community adopted a
resolution electing not to serve in that capacity; and
WHEREAS, AB 1484, signed by the Governor of California on June 27, 2012,
redefines "successor agency" to mean the successor entity to the Dissolved RDA
pursuant to Health and Safety Code Section 34173 and that "a successor agency is a
separate legal entity from the public agency that provides for its governance;" and
WHEREAS, as a separate legal entity, the Successor Agency is not merged with
the City, the public agency that provides for the Successor Agency's governance
(Health and Safety Code Section 34173(g)); and
WHEREAS, the City is not the financial "backstop" or guarantor of obligations of
separate government entities, regardless of its status as a Successor Agency; and
Resolution No. 018
Page 2
WHEREAS, Health & Safety Code Section 34171(d)(1)(F) recognizes as an
"Enforceable Obligation" of the Successor Agency contracts or agreements necessary
for the administration or operation of the Successor Agency, including, but not limited to,
agreements concerning litigation expenses related to assets or obligations, settlements
and judgments, and the costs of maintaining assets prior to disposition; and
WHEREAS, Health and Safety Code Section 34173(h) provides that the City may
loan or grant funds to the Successor Agency for administrative costs, enforceable
obligations, or project-related expenses and that receipt and use of these funds shall be
reflected on the ROPS or in the administrative budget subject to Oversight Board
approval; and
WHEREAS, Health and Safety Code Section 34177.3(b) authorizes the
Successor Agency to create "Enforceable Obligations" to conduct the work of winding
down the Dissolved RDA; and
WHEREAS, Health and Safety Code Section 34178(a) authorizes the Successor
Agency to enter into agreements with the City upon obtaining approval of the Oversight
Board; and
WHEREAS, on January 23, 2013, the City received a letter from the State
Controller's Office advising it that, pursuant to Health and Safety Code section 34167.5,
the Controller would conduct a review of the Agency to determine whether any asset
transfers occurred after January 1, 2011, between the city or any other public agency,
and the redevelopment agency, and whether each asset transfer is allowable and
whether the asset should be turned over to the Successor Agency; and
WHEREAS, the Plaza Theatre was included in included the list of properties the
Successor Agency requested to designate as Governmental Use because of its
importance to the community as a tourism asset and significant historical property; and
WHEREAS, On March 5, 2013, the Oversight Board, in accordance with the
direction provided by the State Controller's Office, adopted a Resolution ordering a
number of properties back to the Successor Agency and making the findings that a
number of properties were constructed and used for a governmental purpose, and
approved the transfer of those to the City, including the Plaza Theatre; and
WHEREAS, on June 14, 2013 and on July 26, 2013, the California Department of
Finance responded to the Oversight Board action and disallowed a number of the
transfers of properties, particularly those that the City held for governmental use
"because they are not reserved for the sole use of governmental agencies or persons
visiting those agencies," and in September, 2013 the State Controller's Office concurred
with DOF and ordered the properties to be returned to the Successor Agency; and
WHEREAS, the City undertook the process of hiring an architect on behalf of the
Successor Agency to assess the physical condition of the Palm Canyon Theater and
then make recommendations on what needs to be done there, including without
limitation the major building systems and accessibility; and
Resolution No. 018
Page 3
WHEREAS, the DOF will issue a finding of completion to a successor agency
that pays the following amounts: (a) The amount determined in the audit of all
applicable funds and (b) The amount (if any) owing to taxing entities from the
December 2011 property tax payment; and
WHEREAS, a finding of completion from the DOF allows the winding down
process to continue expeditiously and loan agreements entered into between the former
Redevelopment Agency and the City are deemed to be enforceable obligations if the
Oversight Board makes a finding that the loan was for bona fide redevelopment
purposes and as enforceable obligations, such payments are listed on ROPS; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS AS FOLLOWS:
SECTION 1. The Oversight Board hereby finds and determines that the
foregoing recitals are true and correct, and incorporates them herein by reference.
SECTION 2. The Contractual Services Agreement by and between the City of
Palm Springs and the Interactive Design Corporation, Inc. in the amount of $24,350 for
the purpose of providing advisory services to the Successor Agency property (the Plaza
Theatre) is hereby approved as a Cash Flow Loan from the City to the Successor
Agency.
SECTION 3. The Oversight Board hereby directs staff of the Successor Agency
to submit the approved Agreement to the County Auditor-Controller, the State Controller
and the State Department of Finance; and post this Resolution on the Successor
Agency's website.
SECTION 4. The loan in the contract amount of $24,350 will be placed on a
future Recognized Obligation Payment Schedule for the period of July 1, 2014 through
December 31, 2014 or the following period. The City would be repaid from available
cash flow of the Redevelopment Property Tax Trust Fund.
SECTION 5. This Resolution shall take effect five ays of its ad ption.
T OMAS FLAVI Chairman
CRA Oversight Board
ATTEST:
GdAMES THOMPSON, Clerk/Secretary
Resolution No. 018
Page 4
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, James Thompson, Secretary of the Oversight Board of the Successor Agency
of the Palm Springs Community Redevelopment Agency hereby certify that Resolution
No. 018 was adopted by the Oversight Board at a Special Meeting held on the 16`h day
of December, 2013, and that the same was adopted by the following vote:
AYES: Board Members Foat, Ready, Van Horn, Vice Chair Howell, and
Chair Flavin.
NOES: None.
ABSENT: Board Members Arthur and Marshall.
ABSTAIN: None.
ES THOMPSON
Oversight Board Clerk/Secretary
City of Palm Springs, California