HomeMy WebLinkAbout1/4/2012 - STAFF REPORTS - 5.C. F pALM Sp "
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January 10, 2012
VIA OVERNIGHT DELIVERY (On-Trac)
Mr. Paul Angulo, Auditor-Controller
County of Riverside
4080 Lemon Street, 11t' Floor
Riverside, CA 92502
RE: Palm Springs Community Redevelopment Agency
Successor Agency and Housing Designation
Dear Mr. Angulo,
Attached for filing, is a certified copy of the City of Palm Springs Resolution
No. 23071, adopted by the Palm Springs City Council, electing to serve as the
successor Agency to the Palm Springs Community Redevelopment Agency pursuant to
California Health & Safety Code § 34173, and election to retain the housing functions
and assets pursuant to California Health & Safety Code § 34176.
Do not hesitate to contact me, should you need additional information.
Respectfully,
CITY OF PALM SPRINGS
MESTHOMPSON
City Clerk
Post Office Box 2743 0 Palm Springs, California 92263-2743
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CITY OF PALM SPRINGS COUNTY AUDITOR CONTROLLER
3200 TAHQUITZ CANYON WAY 4080 LEMON ST. 11TH FLR
PALM SPRINGS,CA 92262
SABRINA KAYE (760)323-8299
RIVERSIDE,CA 92502
MR. PAUL ANGULO
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Del. Date 01/11/2012 09:15 AM
01/11/2012 10:28 AM
RESOLUTION NO. 23071
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ELECTING TO HAVE THE
CITY OF PALM SPRINGS SERVE AS THE SUCCESSOR
AGENCY- TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY PURSUANT TO CAL.
HEALTH AND SAFETY CODE SECTION 34173 AND
ELECTING TO RETAIN THE HOUSING ASSETS AND
HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY
THE PALM SPRINGS COMMUNITY REDEVELOPMENT
AGENCY PURSUANT TO CAL. HEALTH AND SAFETY
CODE SECTION 34176.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, FINDS:
A. The Palm Springs Community Redevelopment Agency ("Agency") is a
public body, corporate and politic, organized and existing under the California
Community Redevelopment Law (Cal. Heath & Safety Code §33000 et seq.)
B. The City of Palm Springs is a municipal corporation and charter city under
the Constitution of the State of California.
C. On December 29, 2011, in California Redevelopment Association v.
Matosantos, Cal. Supreme Court Case No. S194861, the California Supreme Court
upheld AB 1X26, which dissolves all redevelopment agencies in the State of California,
and struck down AB 1X27, which allowed redevelopment agencies to remain in
existence if such agency, opted In to .the "Voluntary Alternative Redevelopment
Program" ("VARP").
D. The City of Palm Springs opted into the VARP by adopting Ordinance
No. 1798, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE
REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE
CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE
CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS" introduced at the
regular meeting of the City Council on September 21, 2011, and adopted at the regular
meeting of the City Council on October 5, 2011.
E. Due to the fact that the Agency was to remain in existence, the City was
not required to decide whether it wished to be the Successor Agency to the Agency.
F. Now that the VARP program has been stricken by the Court, the City has
the option of deciding whether or not it wishes to serve as the Successor Agency to the
Agency.
Resolution No. 23071
Page 2
G. In Footnote No. 25 of the Cal. Supreme Court's decision, the Court
extended the deadline for making the election to January 13, 2012.
H. The City Council of the City of Palm Springs has determined that it is in
the best interest of the City of Palm Springs to serve as the Successor Agency to the
Agency under the express terms and conditions of California Health & Safety Code
§34173.
I. Pursuant to California Health & Safety Code §34173, the City would
automatically became the Successor Agency unless it affirmatively elected not to serve
as the Successor Agency by Resolution, but the City wishes to.express its intention to
serve as the Successor Agency to the Palm Springs Community Redevelopment
Agency.
J. Pursuant to California Health & Safety Code §34176, the City could opt to
retain the housing assets and functions previously performed by the Palm Springs
Community Redevelopment Agency.
K. The City Council of the City of Palm Springs wishes to express its
intention to retain the responsibility of performing housing functions previously
performed by the Palm Springs Community Redevelopment Agency.
L. Pursuant to California Health & Safety Code §34173(e) the liability of any
successor agency shall be limited to the extent of the total sum of property tax revenues
the successor agency receives pursuant to AB 1X26 and the assets transferred to it as
a successor agency for a dissolved redevelopment agency.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS HEREBY
DETERMINES, RESOLVES AND APPROVES:
SECTION 1. The above findings are true and correct and are adopted findings of
the City Council of the City of Palm Springs.
SECTION 2. The City Council hereby affirmatively elects pursuant to California
Health and Safety Code §34173 to serve as the Successor Agency to the Palm Springs
Community Redevelopment Agency and assume all authority, rights, powers, duties,
and obligations previously vested in the Palm Springs Community Redevelopment
Agency.
SECTION 3. The City Council hereby elects to retain the responsibility for
performing housing functions previously performed by the Palm Springs Community
Redevelopment Agency and assume all rights, powers, assets, liabilities, duties, and
obligations associated with the housing activities of in accordance with Cal. Health and
Safety Code §34176.
SECTION 4. In retaining the responsibilities of the Palm Springs Community
Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and
Resolution No.23071
Page 3
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.
SECTION 5. The City Manager is hereby authorized and directed to take such
other and further actions, and sign such other and future documents, as is necessary
and proper to implement this Resolution on behalf of the City.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 4T" DAY OF JANUARY, 2012.
DAVID H. READY, C R
ATTEST:
;iAMES 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. 23071 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 the 4th day of January, 2012,
by the following vote:
AYES: Councilmember Hutcheson, Councilmember Lewin, Councilmember Mills,
Mayor Pro Tern Foat, and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
CERTIFIED COPY
certify that this is a true and correct copy of the document
on file in the official records of the City of Palm Springs.
;;?MOES
THOMPSON, CITY CLERK
City Clerk City of Palm Springs, California or/pg1Zof4
This certification must appear in blue with an original
signature.
City of Palm Springs
OF 4
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Office of the City Clerk
P. O. Box 27,13
°94roaN�P Palm Springs,Caldorjua 92263-2743
Mr. Paul Angulo, Auditor-Controller
County of Riverside
4080 Lemon Street, 11 th Floor
Riverside, CA 92501
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Cq<IFORN�P CITY COUNCIL STAFF REPORT
DATE: JANUARY 4, 2012 ADDED ITEM
NEW BUSINESS
SUBJECT: CONSIDER A PROPOSED RESOLUTION 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.
FROM: David H. Ready, City Manager
BY: City Clerk and City Attorney
SUMMARY
The City Council will consider adding an item to the Agenda and the adoption of a
proposed resolution electing to the have the City of Palm Springs serve as the
successor agency to the Palm Springs Community Redevelopment Agency, due to the
recent determination and decisions of the Cal. Supreme Court.
RECOMMENDATION:
1. Make the finding that the proposed Item designating the City of Palm Springs as
Successor Agency to the Palm Springs Community Redevelopment Agency came to
the attention of the City after the posting of the Agenda and there is an immediate need
to hear and take action on the Item.
2. Add the Item to the January 4, 2012, Agenda, New Business, Item 5.C. (4/5ths
vote of the City Council required to add the Item to the Agenda).
3. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, ELECTING TO HAVE THE CITY OF
PALM SPRINGS SERVE AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY PURSUANT TO CAL. HEALTH AND
SAFETY CODE SECTION 34173 AND ELECTING TO RETAIN THE HOUSING
ASSETS AND HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY PURSUANT TO CAL. HEALTH
AND SAFETY CODE SECTION 34176."
l���_
City Council Staff Report
January 4, 2012 -- Page 2
Successor Agency
STAFF ANALYSIS:
On December 29, 2011, the Cal. Supreme Court upheld AB 1X26, which dissolves all of
the redevelopment agencies in the State of California, and struck down AB 1X27, which
allowed redevelopment agencies to remain in existence if such agency opted to the
"Voluntary Alternative Redevelopment Program" ('VARP"). The City had opted into the
VARP by adopting Ordinance No. 1798, "AN ORDINANCE OF THE CITY OF PALM
SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY
ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF
DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO
PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS."
At that time, because the Agency was going to remain in existence, the City was not
required to decide whether it wished to be the Successor Agency to the Palm Springs
Community Redevelopment Agency.
Now that the Cal. Supreme Court has stricken the VARP program, the City has the
option of deciding whether or not it wishes to serve as the Successor Agency to the
Palm Springs Community Redevelopment Agency.
In general, all the assets, properties, contracts, leases, and records of the Palm Springs
Community Redevelopment Agency are to be transferred to the Successor Agency.
Subject to monitoring by, and in some cases the approval of, an Oversight Board, the
Successor Agency is responsible for winding down the Agency's obligations and affairs.
City staff recommends that the City undertake this responsibility. In carrying out this
obligation, AB 1X26 limits the liability of the Successor Agency to: "the extent of the
total sum of property tax revenues it receives pursuant to this part [Part 1.85] and the
value of the assets transferred to it as the successor agency for a dissolved
redevelopment agency."
If the City elects not to serve as the Successor Agency, the first taxing agency that
submits a resolution to be the Successor Agency for the Palm Springs Community
Redevelopment Agency would be permitted to serve in that role.
Given the level of discretion that the Successor Agency will have over how to handle the
Agency's dissolution, the City of Palm Springs is best served by serving as the
Successor Agency.
The Cal. Supreme Court indicated that it was extending the deadline for making the
election only to January 13, 2012. For this reason staff is recommending the City
Council make the required findings to add this Item on the January 4, 2012, Agenda for
consideration.
City Council Staff Report
January 4, 2012 -- Page 3
Successor Agency
FISCAL IMPACT:
As the Successor Agency to the Palm Springs Community Redevelopment Agency, the
City would incur certain administrative costs. AB 1X26 provides that a successor
agency is entitled to receive up to five percent (5%) of the 2011-12 Tax Increment and
3% of the Tax Increment for each year after that, but not less that $250,000 per year, for
administrative costs.
?mes Thompson, City Clerk Dougla C. Holland, City Attorney
David H. Ready, City r
Attachments:
Proposed Resolution
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ELECTING TO HAVE THE
CITY OF PALM SPRINGS SERVE AS THE SUCCESSOR
AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY PURSUANT TO CAL.
HEALTH AND SAFETY CODE SECTION 34173 AND
ELECTING TO RETAIN THE HOUSING ASSETS AND
HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY
THE PALM SPRINGS COMMUNITY REDEVELOPMENT
AGENCY PURSUANT TO CAL. HEALTH AND SAFETY
CODE SECTION 34176.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, FINDS:
A. The Palm Springs Community Redevelopment Agency ("Agency") is a
public body, corporate and politic, organized and existing under the California
Community Redevelopment Law (Cal. Heath & Safety Code §33000 et seq.)
B. The City of Palm Springs is a municipal corporation and charter city under
the Constitution of the State of California.
C. On December 29, 2011, in California Redevelopment Association v.
Matosantos, Cal. Supreme Court Case No. S194861, the California Supreme Court
upheld AB 1X26, which dissolves all redevelopment agencies in the State of California,
and struck down AB 1X27, which allowed redevelopment agencies to remain in
existence if such agency opted in to the "Voluntary Alternative Redevelopment
Program" ("VARP").
D. The City of Palm Springs opted into the VARP by adopting Ordinance
No. 1798, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE
REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE
CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE
CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS" introduced at the
regular meeting of the City Council on September 21, 2011, and adopted at the regular
meeting of the City Council on October 5, 2011.
E. Due to the fact that the Agency was to remain in existence, the City was
not required to decide whether it wished to be the Successor Agency to the Agency.
F. Now that the VARP program has been stricken by the Court, the City has
the option of deciding whether or not it wishes to serve as the Successor Agency to the
Agency.
Resolution No._
Page 2
G. In Footnote No. 25 of the Cal. Supreme Court's decision, the Court
extended the deadline for making the election to January 13, 2012.
H. The City Council of the City of Palm Springs has determined that it is in
the best interest of the City of Palm Springs to serve as the Successor Agency to the
Agency under the express terms and conditions of California Health & Safety Code
§34173.
I. Pursuant to California Health & Safety Code §34173, the City would
automatically became the Successor Agency unless it affirmatively elected not to serve
as the Successor Agency by Resolution, but the City wishes to express its intention to
serve as the Successor Agency to the Palm Springs Community Redevelopment
Agency.
J. Pursuant to California Health & Safety Code §34176, the City could opt to
retain the housing assets and functions previously performed by the Palm Springs
Community Redevelopment Agency.
K. The City Council of the City of Palm Springs wishes to express its
intention to retain the responsibility of performing housing functions previously
performed by the Palm Springs Community Redevelopment Agency.
L. Pursuant to California Health & Safety Code §34173(e) the liability of any
successor agency shall be limited to the extent of the total sum of property tax revenues
the successor agency receives pursuant to AB 1X26 and the assets transferred to it as
a successor agency for a dissolved redevelopment agency.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS HEREBY
DETERMINES, RESOLVES AND APPROVES:
SECTION 1. The above findings are true and correct and are adopted findings of
the City Council of the City of Palm Springs.
SECTION 2. The City Council hereby affirmatively elects pursuant to California
Health and Safety Code §34173 to serve as the Successor Agency to the Palm Springs
Community Redevelopment Agency and assume all authority, rights, powers, duties,
and obligations previously vested in the Palm Springs Community Redevelopment
Agency.
SECTION 3. The City Council hereby elects to retain the responsibility for
performing housing functions previously performed by the Palm Springs Community
Redevelopment Agency and assume all rights, powers, assets, liabilities, duties, and
obligations associated with the housing activities of in accordance with Cal. Health and
Safety Code §34176.
SECTION 4. In retaining the responsibilities of the Palm Springs Community
Redevelopment Agency as provided in California Health and Safety Code §§ 34173 and
Resolution No.
Page 3
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.
SECTION 5. The City Manager is hereby authorized and directed to take such
other and further actions, and sign such other and future documents, as is necessary
and proper to implement this Resolution on behalf of the City.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 4T" DAY OF JANUARY, 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 the 4t' day of January, 2012,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAMES THOMPSON, CITY CLERK
City of Palm Springs, California