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HomeMy WebLinkAboutA6051 - CRA COOP AGR FOR ADVANCE AND REIMB OF ADMIN/OVERHEAD EXPENSES �bo51 COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE AND OVERHEAD EXPENSES THIS AGREEMENT is made as of the 18th day of January, 2011, by and between the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs (the Agency"). RECITALS A. Pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et seg.), the City has undertaken a program for the redevelopment of blighted areas in the City and in that regard has approved and adopted redevelopment plans for ten separate project areas, which have been subsequently merged into two separate project areas and has established a low and moderate income housing fund to be used for the purposes of increasing, improving and preserving the City's supply of affordable housing. B. The Agency is carrying out the redevelopment plans for each of the project areas, and, in that connection, is utilizing the staff and other resources of the City. The City Manager of the City serves as Executive Director of the Agency and the staff of the Planning, Finance, Engineering and other Departments of the City devote substantial time in gathering information relating to each of the project areas, conferring with developers and potential developers of land within the project areas, conferring with public officials representing the county of Riverside and other governmental agencies regarding the redevelopment of the project areas and undertaking planning and administrative activities in connection with the production, improvement and preservation of affordable housing. C. The Agency has issued its tax allocation obligations to finance various public improvements. D. By providing and making available to the Agency the staff and other resources of the City, and by providing and making available to the Agency office space, equipment, supplies, insurance and other City services and facilities, the City has advanced and will continue to advance the cost of the foregoing to the Agency. E. The City and the 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 Agency to the city. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. The City shall make available to the Agency its staff resources, office space, equipment, supplies, insurance and other services and facilities. The Agency shall have access to the services and facilities of the planning commission, the city engineer and the other departments and offices of the City. Section 2. The value of the staff resources, office space, equipment, supplies, insurance and other services and facilities, which, for purposes of this Agreement shall be (i) no less than $1,000,000 per each fiscal year plus an amount for planning and administrative expenses in connection with the expenditure of moneys in the Agency's low and moderate income housing fund or (ii) such other amount as may be determined by the City Manager pursuant to Section 4 hereof, shall constitute a loan for the administrative expenses and 1 overhead of the Agency, including the planning and administrative expenses of the Agency in connection with the expenditure of moneys in the Agency's low and moderate income housing fund, to be repaid in accordance with this Agreement. Section 3. On or prior to July 1 st of each year, each of the department heads in the City shall prepare and submit to the City Administrator an accounting of time spent during the immediately preceding fiscal year by department personnel on matters for or related to the Agency; the implementation of the overall program for the redevelopment of blighted areas within the City; and any undertaking in furtherance of any redevelopment plan by the City, the Agency, or any related or subordinate public entity of the foregoing. Such accounting shall separately account for time spent during the immediately preceding fiscal year by department personnel on matters for or related to the production, improvement and preservation of affordable housing. Each department head shall also prepare and submit to the City Manager an accounting of the use of all office space, equipment supplies, insurance, and other City services and facilities used by department personnel in connection with time spent on the foregoing, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Section 4. Based upon the foregoing accountings prepared and submitted by each of the department heads, the City Manager shall determine the time spent on matters related to redevelopment as a percentage of the aggregate time spent on all matters. Of the time spent on matters related to redevelopment, the City Manager shall separately determine the amount of time spent on matters related to the production, improvement and preservation of affordable housing. The City Manager shall further determine the fair rental value of the office space and equipment, and the value of supplies,, insurance, and other City services and facilities used during such fiscal year, with a separate accounting of such use in connection with time spent on matters for or related to the production, improvement and preservation of affordable housing. Based upon the percentage of staff time spent on matters related to redevelopment, as calculated above, the City Manager shall determine a fair, reasonable and appropriate rental amount to charge to the Agency for the use thereof during such fiscal year. Section 5. The Agency shall pay to the City, upon demand, the time charges and the fair rental value of office space, equipment, supplies, insurance and other City services and facilities used during such fiscal year, the value of which is set forth in Section 2 hereof. The Agency shall pay such time charges and fair rental value from any funds of the Agency lawfully available therefore, except that time charges and the fair rental value related to the production, improvement and preservation of affordable housing shall be paid from moneys in the Agency's low and moderate income housing fund provided that such planning and administrative expenses are necessary for the production, improvement or preservation of affordable housing and are authorized pursuant to Health and Safety Code Section 33334.3 to be paid from moneys in the Agency's low and moderate income housing fund; provided, however, that the foregoing obligation of the Agency shall be subordinate to any bonds, notes or other obligations of the Agency. Except with respect to the allocation of the payment of the time charges and rental value related to the production, improvement and preservation of affordable housing which shall be allocated to the Agency's low and moderate income housing fund, the Agency shall allocate the payment of the time charges and rental value related to redevelopment among its Project Areas as follows: 70% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 1; and 30% percent of the total shall be allocated to and paid from lawfully available funds derived from Merged Project Area No. 2. The foregoing percentages of allocation reflect the pro rats percentages of each of the Project Areas. 2 Section 6. Upon request of the Executive Director, the City shall advance moneys to the Agency from time to time for the purpose of paying legal, consulting, auditing, and other fees, costs and expenses necessary, desirable or appropriate in connection with the redevelopment activities of the Agency. The Agency shall repay such moneys upon demand by the City. Section 7. Amounts not paid by the Agency to the City upon demand therefore pursuant to this Agreement shall bear interest at the rate of 12 percent per annum from the date of such demand. Section 8. It is the intent of the City Council and the Board of the Community Redevelopment Agency for this agreement to be effective July 1, 2010, but in no event, not later than January 18, 2011. CITY OF PALM SPRINGS By . Z� / A"kr Stephen . Pougnet, Mayor ATTEST: APPROVED BY CITY COUNCIL rZ 2ZS53 ©1/11/t01 t A 4,os 1 y Clerk /1 xO 1 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By StepherfP. Pougnet, Chairman ATTEST: /A� sistant Secretary r r f e J2 0 I 1 v APPROVED AS TO FORM: City Attorney and Agency Counsel 3