HomeMy WebLinkAbout2/15/2012 - STAFF REPORTS - 2H NI
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS
CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY,
AUTHORIZING THE CREATION OF NEW FUNDS AND
ACCOUNTS FOR THE SUCCESSOR AGENCY
OBLIGATIONS OF THE CITY RELATED TO THE FORMER
COMMUNITY REDEVELOPMENT AGENCY, PURSUANT
TO AB 1X 26.
WHEREAS, on December 29, 2011 , the California Supreme Court upheld AB 1X
26, which dissolves all of the redevelopment agencies in the State of California, and
struck down AB 1X 27, which allowed redevelopment agencies to remain in existence if
1 such agency opted to the "Voluntary Alternative Redevelopment Program" ("VARP");
and
WHEREAS, under the Law, all accounts of the former Redevelopment Agency
(RDA) transfer to the Successor Agency; and
WHEREAS, the City Council of the City of Palm Springs, California, adopted
Resolution 23071 on January 4, 2012, designating the City of Palm Springs as the
Successor Agency to the Palm Springs Community Redevelopment Agency Pursuant to
Cal. Health and Safety Code Section 34173.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SECTION 1. To preserve the limited liability of the Successor Agency provided in
AB 1X 26, the Successor Agency should hold all former RDA accounts separately from
its other accounts.
SECTION 2. The Department of Finance and Treasury is hereby authorized to
create new and separate funds and accounts for the Successor Agency obligations of
the City related to the former Palm Springs Community Redevelopment Agency
Pursuant to AB 1X 26.
SECTION 3. In retaining the responsibilities of the Palm Springs Community
Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and
34176, the City Council expressly determines, recognizes, reaffirms, and ratifies the
statutory limitation on the City and the City Council's liability in retaining the
responsibilities of the Palm Springs Community Redevelopment Agency under AB
1X26. Nothing in this Resolution shall be construed as a commitment, obligation, or
debt of the City or any resources, funds, or assets of the City to fund the City's service
as the successor agency to the Palm Springs Community Redevelopment Agency as
provided in this Resolution. a Z/v 5I,Zp I Z
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS
CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY,
AUTHORIZING THE CREATION OF NEW FUNDS AND
ACCOUNTS FOR THE SUCCESSOR AGENCY
OBLIGATIONS OF THE CITY RELATED TO THE FORMER
COMMUNITY REDEVELOPMENT AGENCY, PURSUANT
TO AB 1X 26.
WHEREAS, on December 29, 2011, the California Supreme Court upheld AB 1X
26, which dissolves all of the redevelopment agencies in the State of California, and
struck down AB 1X 27, which allowed redevelopment agencies to remain in existence if
such agency opted to the "Voluntary Alternative Redevelopment Program" ('VARP");
and
WHEREAS, under the Law, all accounts of the former Redevelopment Agency
(RDA) transfer to the Successor Agency; and
WHEREAS, the City Council of the City of Palm Springs, California, adopted
Resolution 23071 on January 4, 2012, designating the City of Palm Springs as the
Successor Agency to the Palm Springs Community Redevelopment Agency Pursuant to
Cal. Health and Safety Code Section 34173.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SECTION 1. To preserve the limited liability of the Successor Agency provided in
AB 1X 26, the Successor Agency should hold all former RDA accounts separately from
its other accounts.
SECTION 2. The Department of Finance and Treasury is hereby authorized to
create new and separate funds and accounts for the Successor Agency obligations of
the City related to the former Palm Springs Community Redevelopment Agency
Pursuant to AB 1X 26.
SECTION 3. In retaining the responsibilities of the Palm Springs Community
Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and
34176, the City Council expressly determines, recognizes, reaffirms, and ratifies the
statutory limitation on the City and the City Council's liability in retaining the
responsibilities of the Palm Springs Community Redevelopment Agency under AB
1X26. Nothing in this Resolution shall be construed as a commitment, obligation, or
debt of the City or any resources, funds, or assets of the City to fund the City's service
as the successor agency to the Palm Springs Community Redevelopment Agency as
provided in this Resolution.
02/15/201 Z
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:I Resolution
Page 2
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 15TH DAY OF FEBRUARY, 2012.
a DAVID H. READY, CITY MANAGER
ATTEST:
JAMES THOMPSON, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on February 15, 2012, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAMES THOMPSON, CITY CLERK
City of Palm Springs, California
Resolution
Page 2
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 15TH DAY OF FEBRUARY, 2012.
DAVID H. READY, CITY MANAGER
ATTEST:
JAMES THOMPSON, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on February 15, 2012, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAMES THOMPSON, CITY CLERK
City of Palm Springs, California
F PALM$,.
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Successor Agency Staff Report
1
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CQ�IFORN�P
DATE: FEBRUARY 15, 2012 CONSENT CALENDAR
SUBJECT: ESTABLISHMENT OF NEW FUNDS AND ACCOUNTS FOR THE
SUCCESSOR AGENCY OBLIGATIONS OF THE CITY RELATED
TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY
PURSUANT TO AB 1X 26
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
On December 29, 2011, the California Supreme Court upheld AB 1X 26, which
dissolves all of the redevelopment agencies in the State of California, and struck down
AB 1X 27, which allowed redevelopment agencies to remain in existence if such agency
opted to the "Voluntary Alternative Redevelopment Program" ("VARP").
Under the Law, all accounts of the former Redevelopment Agency (RDA) transfer to the
Successor Agency. To preserve the limited liability of the Successor Agency provided in
AB 1X 26, the Successor Agency should hold all former RDA accounts separately from
its other accounts and as the Successor Agency to the former RDA. These accounts
should initially include a "housing account" where the existing balance in the RDA's
Housing Fund should be placed pending the County audit and possible new legislative
direction pending the outcome of SB 654, which would allow Successor Housing
Agencies to retain their Low and Moderate Income Housing Fund Balances..
RECOMMENDATION:
Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS THE
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT
AGENCY, AUTHORIZING THE CREATION OF NEW FUNDS AND ACCOUNTS FOR
THE SUCCESSOR AGENCY OBLIGATIONS OF THE CITY RELATED TO THE
FORMER COMMUNITY REDEVELOPMENT AGENCY, PURSUANT TO AB 1X 26."
ITEM NO.V—
City Council as Successor Agency Staff Report
February 15, 2012—Page 3
Establishment of New Funds and Accounts
The Successor Agency is also required to establish a Redevelopment Obligation
Retirement Fund. Funds transferred from the former RDA on February 1, 2012 and
Funds received from future asset dispositions shall be held in the accounts described in
the previous item and not in the Redevelopment Obligation Retirement Fund, which is
intended as the repository for property taxes received from the County Auditor-
Controller to pay enforceable obligations as set forth in the EOPS or, when effective, the
ROPS. Since Palm Springs administered multiple project areas, it is recommended the
Successor Agency set up sub-accounts in the Redevelopment Obligation Retirement
Fund to track property taxes received and obligations paid with respect to each
separate project area.
This fund shall be established in the Successor Agency; however, due to the nature of
bonding covenants and requirements, CRA has suggested that one of these funds be
created for each of the current project areas present in the Agency. Hopefully, the
County will allocate monies to the Successor Agency by project area and the Successor
Agency can record those amounts in the Redevelopment Obligation Retirement Fund of
the applicable project area(s). Then transfers of the amount to the appropriate debt
servicing funds and to the Successor Housing Agency (for housing debt) to accomplish
debt repayment can occur.
FISCAL IMPACT:
There will be no fiscal impact other than moving the assets, liabilities, and
appropriations from the former CRA funds to the new successor funds.
ohn a m nd, Director of Geoffrey ieh , Director of Finance
o u ' & Economic Development and Treasurer
DavidARy, ive Director Tom Wilson, �' sistant City Manager
4
Dougland, City Attorney
Attachments:
1. Resolution
02
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
CREATION OF NEW FUNDS AND ACCOUNTS FOR THE
SUCCESSOR AGENCY OBLIGATIONS OF THE CITY
RELATED TO THE FORMER COMMUNITY
REDEVELOPMENT AGENCY, PURSUANT TO ASSEMBLY
BILL 1X 26 (AB1X26).
WHEREAS, on December 29, 2011, the California Supreme Court upheld AB 1X
26, which dissolves all of the redevelopment agencies in the State of California, and
struck down AB 1X 27, which allowed redevelopment agencies to remain in existence if
such agency opted to the "Voluntary Alternative Redevelopment Program" ("VARP");
and
WHEREAS, under the Law, all accounts of the former Redevelopment Agency
(RDA) transfer to the Successor Agency; and
WHEREAS, the City Council of the City of Palm Springs, California, adopted
Resolution 23071 on January 4, 2012, designating the City of Palm Springs as the
Successor Agency to the Palm Springs Community Redevelopment Agency Pursuant to
Cal. Health and Safety Code Section 34173.
NOW THEREFORE THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
Section 1. To preserve the limited liability of the Successor Agency provided in
AB 1X 26, the Successor Agency should hold all former RDA accounts separately from
its other accounts.
Section 2. The Department of Finance and Treasury is hereby authorized to
create new and separate funds and accounts for the Successor Agency obligations of
the City related to the former Community Redevelopment Agency Pursuant to AB 1X
26.
ADOPTED THIS 15TH DAY OF FEBRUARY, 2012.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
03
Resolution
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
04