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Home My Public Portal About19) 11B Reso 12-4793SA & 12-4794SASuccessor Agency of the Temple City Community Redevelopment Agency February 7 , 2012 Page2 ANALYSIS: With the former Temple City Community Redevelopment Agency dissolved as of February 1, 2012, AB x1 26 requires the City (in its capacity as successor agency) to establish a Redevelopment Obligation Retirement Fund . The City's ordinance requires City Council approval to establish new accounts. Monies of the former Redevelopment Agency are being held in trust, but in a City fund. To fully comply with AB x1 26, staff needs to establish accounts with both the City's general commercial bank (a checking account out of which to make regular payments) and in the City's investment consortium (the Local Agency Investment Fund or "LAIP') for purposes of holding funds that do not need to be immed iately used. Staff is requesting City Council approval of the following resolutions to allow for ongoing business transactions. Resolution Establishing a Redevelopment Obligation Retirement Fund. Health and Safety Code Section 34170.5 requires the successor agency to create in its treasury a Redevelopment Obligation Retirement Fund . Once established, the fund allows the City (the successor entity) to pay the former agency's administrative expenses until June 30, 2012. Those expenses are identified on the enforceable obligation schedule, provided as Attachment C and approved by the T ample City Community Redevelopment Agency on January 17, 2012. Resolution Authorizing Investment in the State of California Local Agency Investment Fund. The State Treasurer's Office recently issued a notice (Attachment D) to California public agencies on how the transition of redevelopment operations to a successor agency may affect their accounts with LAIF. Pursuant to Government Code Section 16429.1, the attached resolution accommodates the State's requirement identifying the successor entity, and allows the City to invest former redevelopment agency monies into LAIF after February 1, 2012. CONCLUSION: Adoption of the attached resolutions allow the C ity, in its capacity as successor agency, to make deposits and withdrawals from the redevelopment agency's LAIF accounts. The resolutions are also necessary for the City to receive funds from the County Auditor-Controller to pay enforceable obligations of the former redevelopment agency. FISCAL IMPACT: None. Successor Agency of the Temple City Community Redevelopment Agency February 7, 2012 Page3 ATTACHMENTS: 1. Resolution No. 12-4794-SA 2. Resolution No . 12-4793-SA 3. Amended Enforceable Obligation Schedule 4. State Treasurer's Notice Attachment A RESOLUTION NO 12-4794-SA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, ACTING IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY, CREATING A REDEVELOPMENT OBLIGATION RETIREMENT FUND PURSUANT TO HEALTH AND SAFETY CODE SECTION 34170.5 AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. AB x1 26 and AB x1 27 were signed by the Governor of California on June 29, 2011, making certain changes to the Community Redevelopment Law (Part I (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law"), including adding Part 1.8 (commencing with Section 34161)("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85'l B. The California Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (California Redevelopment Association, eta/. v . Matosantos, eta/. (Case No. S194861 )) alleging that AB x1 26 and AB x1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its opinion in the Matosantos ease, largely upholding AB x1 26, invalidating AB x1 27, and holding that AB x1 26 may be severed from AB x1 27 and enforced independently. C. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 arising before May 1, 2012, to take effect four months later. D. As a result of the Supreme Court's decision, the Temple City Community Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the City of Temple City (the uCity"), created pursuant to the Redevelopment Law, was dissolved pursuant to Part 1 .85 on February 1, 2012. E. By its failure to adopt any resolution declining to serve as the successor agency for the Redevelopment Agency under Part 1.85 (the "Successor Agency"), the City by operation of Jaw took on the rights, duties, and obligations of the Successor Agency as set forth in Part 1.85. F. Health and Safety Code Section 34170.5 provides that each successor agency shall create within its treasury a Redevelopment Obligation Retirement Fund to be administered by the successor agency. G. Accordingly, the City Council desires to adopt this Resolution creating a Redevelopment Obligation Retirement Fund within the treasury of the Successor Agency. LA #4816-6500. 7886 vl NOW, THEREFORE, THE CITY COUNCIL, ACTING IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE TEMPLE CITY COMMUNITY 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 Health and Safety Code Section 34170.5. Section 3. The City Manager and the Finance Officer are hereby authorized and directed to create within the treasury of the Successor Agency a Redevelopment Obligation Retirement Fund to be administered by the Successor Agency. Section 4. The City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor-Controller. Section 5 . The officers and staff of the City, in its capacity as 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 are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 7'h day of February, 2012. MAYOR ATTEST: City Clerk I hereby certify that the foregoing resolution, Resolution No. 12-4794-SA, was duly passed, approved and adopted by the City Council of the City of Temple City at a regular meeting held on the ih day of February 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmember- Councilmember- Councilmember- Councilmember- lA 114816-6500.7886 vl City Clerk Attachment B RESOLUTION N0.12-4793-SA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, ACTING IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY, AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND APPROVING OFFICERS AUTHORIZED TO TRANSACT BUSINESS WITH THE LOCAL AGENCY INVESTMENT FUND WHEREAS, pursuant to Chapter 730 of the statutes of 1976, Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council, acting in its capacity as successor agency to the Temple City Community Redevelopment Agency, does hereby find that deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of' Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the City of Temple City in its capacity as successor to the former Redevelopment Agency. NOW, THEREFORE BE IT RESOLVED, that the City Council, acting in its capacity as successor agency to the Temple City Community Redevelopment Agency, does hereby authorize deposit and withdrawal of those monies held by the City in said capacity to and from the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer's Office of all banking information provided in that regard. BE IT FURTHER RESOLVED, that the following City of Temple City officers or their successors in the office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund: City Manager City Clerk Parks and Recreation Director Administrative Services Director SECTION 1 ~ The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED on this ih day of February, 2012. Mayor ATTEST: City Clerk I hereby certify that the foregoing resolution, Resolution No. 12-4793-SA, was duly passed, approved and adopted by the City Council of the City of Temple City at a regular meeting held on the th day of February 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmember- Councilmember- Councilmember- Councilmember- City Clerk Name of Agency: Temple City Community Aedevelopmenl Agency Project Acea: Rosemead Boulevard JANUARY 2012 AMENDMENT TO THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26-Section 34167 and 34169• Tolal Project Name I Deb I Obligation Payee DescrlpUon OulBiandlng Debt or Obliaalion Jan Feb Mar Apr May 1) 2005 Tax Allocation Refunding Sank of New York Trust Refundllhe 1993 Rovenua Bonde end lunda lawful tfld8yolopment activities $ 8 ,744,7<47 $ 147,413 $ Bonds'' Company (payoll date IW025). Conaolidalss pl1ot loans lor variou& 11M 2) 1998 Clly loan''' City of Temple Clly hoWling piOjocts (lobe raUred s 3,892,715 s 300,000 8/15'2017). 3) Rosemead Blvd. Enhancement Projacr'" Various For construction and 111lalacl costa. $ 2,58(),.401 $ 116,081 s 116,080 $ 116,080 s 116,080 $ 116,080 $ 4) Con1ract: Prolesalonal SoiVic:es Bu!M, Williama & Sorenson, For general legal counsel &eiVices. n/11 $ 5,000 $ 2,000 $ 2 ,000 $ 2 ,000 s 2 ,000 s LLP 5) Conlnwt: Proleaelonal Services Sellel Consulting Inc. For Hnanclal advisory service&. n/a $ 5,000 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 6) Conlr1u;t; ProleseloMI Services TheHdL~ For rovenue auditing 881Vi:M. n/a $ 625 s Six I Monlh Jun Tolal ~n.416 s 624,829 s 300.000 2 .000,000 s 2,580,401 2,000 s 15,000 1,200 $ 11,000 625 s 1,250 7) Overhaad: Office and Supplies Varioua For admlnl5tnltive expenaea purauanl n/a s 998 s 898 s 998$ 998 s 998 $ 998 $ 5.9881 to CAL Section 33127. 8) Overhaad: Employee Costa Agency Employaea For employwe llllariee and benofrts. n/a $ 14,247 $ 14,247 s 14,247 $ 14,247 $ 14,247 $ 14,247 $ 85,482 Bond proceeds 10 fulfiJIIegll Cety ol Temple City or Unspent bond proceeds required by 9) obligations of Tax Allocation Bond Temple City Finance bondholder covenants 10 be apent on $ 627,225 nl• CoYeMnla Authority public capital improvements in Project Area Tolals-This Page $ 15,845,088 $ 441,328 $ 291,938 $ 135,150 $ 134,525 $ 134,525 $ 2 ,496,496 $ 3,623,950 Tolals-Other ObligaHons $ 1,930,504 $ -$ -$ -$ -$ -$ 748,128 $ 748,128 Grand Tolal· All Pages s 17,n5,592 $ 441,326 $ 281,939 $ 135,150 $ 134,525 $ 134,525 $ 3,244,614 $ 4,372,078 • 1'he CA Sllpwrne Coont -~~~-"-nbby Bill28-toy lour I1'GIItha IM)'teoull ~~about whal poqo-u a Succauor lqotw:y II rwponsiblo 1D -.In oddltion, ~ Mly 1, 2012,1111 s..c.:-1oqtn:y 1M)' only ma1ca poqo-u lio1ed on1111--~ Obligallan P8)\'IMIIII _,. (ROPS). -.It Ia urda&t u 1D -1111 ROI'S wil ~fact t.. ~toy Mly 1, 201:1. Thlo, In ._...ID INa ~.1111 EOf'S ""*"*'*'' IIIIa ~ oblgallans ltmugh .U. 30. 2012,1111end al Floe&l Y-2011/12. (Tho pn(imlnaly lh~ ol1llllriliol ROPS nut be ptepaltld toy h<lsec>Mng /lqlJnt:rtoy 1!.11111 . 'lllo dnolt lnilial ROPS muot t.. ~toy lhe s..oces-Agenoytoy 311111, IWjecllo ceJtl!lcalian al an-auci1or ond -~~~ olh ~Board.) •· .lin omounl rwileclll ~77.416111 lunda !hat nMd 1o be-ror • ~bond~ !halls u In~ 2012. ••• AS 28 --con-belwMn • -elopmenl _..:yond 111 opon80flng convnurily (City) .,.lnv.alirland no1 blndna onlhe-Agonclea upon daolution allhe ~d eooncy. -· u lhe rw-~ ol HI COIItiW:IIM)' nul be ~volld. HI 11_.-t illndudocl an INa~. "" Funcfng pnMcled toy~ allhe 2005 Tu AlocaJion RMin:lng Bondi. -- ~ Q) 0 ~ 3 CD ::J r+ () Name ol Agency: Temple City Community Redevelopment Agency Project Area: Rosemead Boulevard JANUARY 2012 AMENDMENT TO OTHER OBLIGATION PAYMENT SCHEDULE Par AB 26-Section 34167 and 34169• Total Project Name I Debt Obligation Payee Description Outstanding Dabl or Oblloation Jan Fab Mar Apr AQerty ResponslbiiJty lor portion of FY Pa)'lllanl& punwant to CRL SectiorB 1) 2011/12 Stslutoty Pass-Through City of Tam pie City 33807.5 and 33807.7. $ 2,450 Payments•• AQerty RespcnsltXIIty lor portion of FY Payments Jal~ to CRL Sections 2) 2011/12 StatUioty Pass-Through Other Taxing Entitles $ 32,450 Payments•• 33807.5 and 33807.7. 3) Housing Fund Adlustmanl'" Ageocy Housing Fund Rapaymanl of bond pnlC9IIds lrom Capital $ 487,106 Fund to Housing Fund puratm1t to CRL Housing Fund Balance Balance In low Moderate lr.:ane Housing $ 654 ,762 Flnl 4) Housing Fund Oelk:ll Repaymanl Age«:f Housing Fund Repaymanl of deferred Housing Fund $ 753,738 deposits pursuant to CRL Section 33334.6. lroraJs-Other ObllgatJors I$ 1,930,504 1 s . Is . Is . Is • l1w CA Suptana Court order ID Ulllnd AuerTDiy llill26 dlltea by four ITill1lh:o nay IMUit., uncertainty about whal paymonls a s..cc.s.or Aqsnr:y ie mponelble Ia nala!. In adliban, ClOITWIWncing May 1, 2012,1ho s.-.« 1v;1arry rmy rriy-payn.a lilted on lhe IIJIPIUVed R~ Obliga.ban ~I ScheclJte (FlOPS). H-er,~ ie unc:ie&r 1111111 -the ROPS will in lac! be App<OYed by Mlly 1, 2012. Thus, In reepo111e ID !hill &n:er~Blly,lhe EOPS Arnlndmenlli8bo peyrroont abligllliOfw t11to<91 June 30, 2012,1ho end ol Fi:lelll Year 2011/12. (llw pnllirr*laly dtallollha tmia1 ROPS rrust be pnopallld bylha c1aoM1g Aqllw:y by 1/31111 . The dralllnltill ROPS "'*be pmpered by !he s.-.« ~by 311111. aljJjeelto certdlcallon ol an el1181Nl aucitor end ~~ppn~Vel ollhe Ove~ Board.) Is •• Eallnaled lor FY2011/12 bued on~ olpoojecled FY2011112 tax incnlnwnt .....,.,._ (lhe 181-..,. portion rriy). The ramoiring pua through oblgalionllorFY20tt/121118 ........S to be..-by the County Aud1Dr-Cantltlle(e Office. •·• Peyrroont 10 be,_ in FY 2011112 d lllllfid«<t funds avadable, olllerMse wiD need to be nwde on lutuno yeano. ------ Six Month May Jun Total $ 2,450 $ 2,450 $ 32,450 $ 32,450 s 487,106 $ 487,106 rV8 $ 226,122 $ 226,122 1 s 748,1281 s 748,128