SA-2 - AGMT - SUCCESSOR AGENCY ADMINISTRATIVE BUDGET

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F. As of and on and after February 1, 2012, the City serves and acts as the "Successor Agency" and will perform its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all subject to the review and approval by a seven-member oversight board ("Oversight Board"). G. Health and Safety Code Section 34177(j), as modified by the Supreme Court decision, requires the Successor Agency to prepare a proposed administrative budget covering the period from February 1, 2012 through June 30, 2012 and submit it to the Oversight Board for approval. H. Pursuant to Section 34177(j), the Successor Agency's "Administrative Budget" is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the up-coming six month fiscal period; (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the City serving as Successor Agency. 1. Pursuant to Section 34180(h) the Successor Agency may request authorization from the Oversight Board for the Successor Agency and the City of Santa Ana to enter into an agreement to ensure provision of the necessary services from the City to support Successor Agency responsibilities in winding down the activities of the former community redevelopment agency, including the estimated costs set forth in the Administrative Budget. J. The Successor Agency desires to enter into that certain "Cooperative Agreement Between the City of Santa Ana and the City Acting as the Successor Agency for the Former Community Redevelopment Agency" ("Cooperative Agreement"), which agreement will authorize the reimbursement of costs incurred by the City to support Successor Agency operations and obligations. K. Pursuant to the Dissolution Act, the actions of the Oversight Board, including those approved by this Resolution, do not become effective for three (3) business days pending any request for review by the Department of Finance ("DOF"), and if the DOF requests review hereof, DOF will have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight Board for reconsideration and the action, if subject to review by DOF, will not be effective until approved by DOF. L. Health and Safety Code Section 34173(e) provides that "the liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency." Thus, the City's obligations as Successor Agency are limited by the amount of property taxes and the value of assets it receives in its role as the Successor Agency. NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY: 2-6