HomeMy WebLinkAbout03 - JT Reso FY10-11 CRA Budget and Amended City-Agency AgmtlJ T' l1N !L/
NY Cl"i N
MEETING DATE:
JUNE 21, 2010
CLERK OF COUNCIL USE ONLY:
TITLE: APPROVED
RESOLUTION APPROVING FISCAL YEAR 2010-
2011 COMMUNITY REDEVELOPMENT AGENCY ~
BUDGET AND SECOND AMENDED AGREEMENT ~
BETWEEN CITY/AGENCY FOR FINANCIAL AND ~
OPERATING SERVICES
As Recommended
As Amended
Ordinance on 1st Reading
Ordinance on 2nd Reading
Implementing Resolution
Set Public Hearing For
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CITY ANAGER EXECUTIVE DIRECTOR
REC®MMN®E® ACl°I®N
CITY COUNCIL ACTION
Authorize the City Manager and Clerk of the Council to execute the attached second amended
agreement between the City of Santa Ana and the Community Redevelopment Agency for
financial and operating services, subject to non-substantive changes approved by the City
Manager and City Attorney.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Adopt a resolution approving the fiscal year 2010-2011 budget of the Community
Redevelopment Agency as identified in the City of Santa Ana's Annual Budget.
2. Authorize the Executive Director and Agency Secretary to execute the attached second
amended agreement between the Community Redevelopment Agency and the City of Santa
Ana for financial and operating services, subject to non-substantive changes approved by the
Executive Director and Agency General Counsel.
DISCUSSION
Consistent with California Redevelopment Law, the annual funding plan and certain findings for the
Community Redevelopment Agency (Agency) must be approved by a resolution of the Agency.
The proposed overall budget for the Community Development Agency for fiscal year 2010-2011 is
$102,742,270, of which $51,255,785 is comprised of various federal and state grants and other
miscellaneous sources.
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Resolution Approving FY 2010-2011 CRA Budget &
Second Amended Agreement Between City/Agency
June 21, 2010
Page 2
The remaining $51,486,485 is the Redevelopment Agency's property tax increment revenue, and
represents a 10.5% decline in projected revenue from 2009-2010. The property tax increment
revenue is allocated to support the programs and projects of the Agency, including the payment of
debt service and obligations totaling $20,131,995 (39.1%), payment to the Low and Moderate-
Income Housing Fund totaling 13,573,155 (26.4%) pursuant to California Redevelopment Law,
payment of pass-through obligations to other taxing districts totaling $9,935,840 (19.3%), the
funding of eligible capital projects totaling $4,807,115 (9.3%), and the management and
administration of the merged redevelopment project areas totaling $3,038,380 (5.9%).
On an annual basis, the Agreement for Financial and Operating Services between the City and the
Agency is reviewed to ensure compliance with changes in California Redevelopment Law and the
State Controller's guidelines. The amended agreement has been updated to reflect that the
Agency complies with the Gity's policies and procedures.
FISCAL IMPACT
The fiscal year 2010-2011 Community Redevelopment Agency budget reflects the sum of the
appropriations for debt service, contractual, capital projects, and administrative obligations in the
merged redevelopment project areas and the Housing Set-Aside fund.
APPROVED AS TO FUNDS AND ACCOUNTS:
~~
Nancy T. ards
Assistant D ctor
Community Development Agency
CJN/NTE/mlr
Exhibits: 1. Resolution
2. Amended Agreement
~l\~~~ L~Ii L° A\ 1 U sw Y. ~
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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6/16/10 LES
RESOLUTION NO. 2010-
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA ADOPTING THE FISCAL YEAR
2010-2011 BUDGET
BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS:
Section 1. The Community Redevelopment Agency of the City of Santa Ana
conclusively finds, determines and declares as follows:
A. Pursuant to Health & Safety Code § 33606, the Community
Redevelopment Agency of the City of Santa Ana ("Agency') must adopt an annual
budget.
B. The draft budget for fiscal year 2010-2011 presented to the Agency is
designed to further implement the Agency's mandate to reduce or eliminate the physical
and economic conditions that cause blight within the City of Santa Ana. The Projects are
consistent with the 5-Year Implementation Plan, the Redevelopment Plans (as amended)
and the reduction and/or elimination of blight.
C. The Legislature has concluded that the term "redevelopment" includes
provision for open-space types of use, such as streets and other public grounds and
space, and the replanning or redesign of stagnant or improperly utilized areas which exist
because of defective or inadequate street layout.
D. The Agency hereby finds and determines that the planning and
administrative expenses to be paid from the Low and Moderate Income Housing Fund for
each redevelopment project are necessary for the production, improvement, or
preservation of low- and moderate-income housing pursuant to Health and Safety Code
§ 33334.3(d) and are not disproportionate to the amounts budgeted for the costs of
production, improvement or preservation of that housing. Such costs are necessary and
proportionate to the amount proposed for actual housing assistance activities for the
year.
E. The Agency hereby finds that the planning and administrative expenses
budgeted last fiscal year from the Low and Moderate Income Housing Fund were
necessary and appropriate for the production, improvement, or preservation of low- and
moderate-income housing pursuant to Health and Safety Code § 33334.3(d) and were
not disproportionate to the amounts actually spent last year for the costs of production,
improvement or preservation of that housing.
F. The Agency has retained certain interests in real property acquired using
moneys from the Low and Moderate Income Housing Fund, and has not initiated
activities consistent with the development of the property for the development of housing
affordable to persons and families of low and moderate income within the statutory five
(5) year period. The addresses of these properties are as follows: 801 E. Brown Street,
3 - ~ 7 EXHIBIT 1
6116/10 LES
902 E. Brown Street, 542 E. Central Avenue, 601-603 E. Fifth Street, 606 E. Fifth Street,
607 E. Fifth Street, 610-612 E. Fifth Street, 621 E. Fifth Street, 505-507 N. Minter Street,
508-510 N. Porter Street, and 710 E. Sixth Street.
The Agency intends that these properties shall be used for the development of
housing affordable to persons and families of low and moderate income, and hereby
requests a five (5) year extension in furtherance of said purpose pursuant to Health and
Safety Code § 33334.16.
G. The Agency has retained certain interests in real property acquired using
moneys from the Low and Moderate Income Housing Fund, and is currently in the
process of the development of the property for housing affordable to persons and
families of low and moderate income during or exceeding the ten (10) year statutory
period. The Agency intends that these properties ("Station District Properties") shall be
used for the development of housing affordable to persons and families of low and
moderate income, pursuant to the Disposition and Development Agreement authorized
on June 7, 2010 (Health and Safety Code § 33334.16).
Other Agency owned interests in real property acquired using moneys from the
Low and Moderate Income Housing Fund, which are currently in the process of the
development of the property for housing affordable to persons and families of low and
moderate income during or exceeding the ten (10) year statutory period are located at
2034-2038 N. Bush Street. A developer has been selected and negotiations are ongoing
for the development of housing affordable to persons and families of low and moderate
income, pursuant to Health and Safety Code § 33334.16.
H. The Agency adopts by reference and incorporates as though fully set forth
herein each and every finding contained in the supporting documentation which
accompanies the draft budget for fiscal year 2010-2011, including but not limited to the
memorandum from the Executive Director to the City Manager dated May 21, 2010, and
the staff report from the Executive Director to the Agency Board, together with any
exhibits attached to said documents.
I. The draft budget for fiscal year 2010-2011, together with the supporting
documentation presented to the Agency, complies in all respects with the requirements
of the Community Redevelopment Law, including but not limited to Health & Safety Code
33606.
J. For those expenditures proposed which are outside the Merged
Redevelopment Project Area in the draft budget for fiscal year 2010-2011, the Agency
finds and declares that such expenditures will be of benefit to the Merged
Redevelopment Project Area. These projects include the Downtown Wayfinding
Program, the Station District Cultural and Historical Identification Program, the Station
District Residential Rehabilitation Program and community center, as well as proposed
open space, community center and/or educational facility. This finding is made pursuant
to Health & Safety Code § 33334.2(g)(1).
K. The Agency finds and declares, pursuant to Health & Safety Code §
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6/16/10 LES
33420.2, that because of the magnitude and severity of the graffiti within its Merged
Redevelopment Project Area, any actions that the agency determines are necessary to
remove graffiti from public or private property may be taken in order to effectuate the
purposes of the redevelopment plan, and such removal actions shall assist with the
elimination of blight, as defined in section 33031.
L. The Agency finds and declares, pursuant to Health & Safety Code §33445
that certain publicly owned improvements shall be constructed or improved, financed
partially or wholly, as determined by the Executive Director, with Agency funds within or
without the project areas, thereby constituting debt of the Agency, except within the
former Bristol, Central City and Inter-City Project Areas. The legislative body has
determined that the facilities, structures or other improvements listed in the Capital
Improvement Plan (CIP) and the Agency's Proposed Budget for fiscal year 2010-2011
outside of the Merged Redevelopment Project Area, are of benefit to the Merged
Redevelopment Project Area or the immediate neighborhood in which the project(s) are
located. These projects include the proposed open space park and recreational facility
on the Agency owned properties on McFadden Avenue. Further, no other reasonable
means of financing the buildings, facilities, structures, or other improvements are
available to the community; and the payment of funds for the cost of the facilities,
structures or other improvements will assist in the elimination of one or more blighting
conditions inside the project area or provide housing for low- or moderate-income
persons, and is consistent with the implementation plan adopted by the Agency pursuant
to Health & Safety Code §33490.
M. The Agency has reviewed the Amended Agreement between the City of
Santa Ana and the Community Redevelopment Agency of the City of Santa Ana for
Financial Operating Services ("Operating Agreement")and hereby updates and reaffirms
said Agreement with the Second Amended Operating Agreement.
Section 2. The fiscal year 2010-2011 budget of the Community Redevelopment
Agency of the City of Santa Ana is hereby approved and adopted pursuant to Health & Safety
Code § 33606.
Section 3. This Resolution shall take effect immediately upon its adoption by the
Agency Board, and the Agency Secretary shall attest to and certify the vote adopting this
Resolution.
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ADOPTED this day of
Miguel A. Pulido
Chair
APPROVED AS TO FORM:
Joseph W. Fletcher, General Counsel
2010.
By:
Lisa E. Storck
Assistant Counsel
AYES:
Boardmembers:
NOES:
Boardmembers:
ABSTAIN: Boardmembers:
NOT PRESENT: Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2010- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on , 2010.
Date:
Secretary, Community Redevelopment Agency
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SECOND AMENDED AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND THE
COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF SANTA ANA FOR FINANCIAL AND
OPERATING SERVICES
THIS AGREEMENT made and entered into this 21St day of June 2010, by and between the
City of Santa Ana, a charter city and municipal corporation, organized and existing under the laws
of the State of California, hereinafter referred to as "City," and the Community Redevelopment
Agency of the City of Santa Ana, a public body, corporate and politic, hereinafter referred to as
"Agency."
RECITALS:
1. The City Council of Santa Ana created the Community Redevelopment Agency of
the City of Santa Ana by Ordinance No. NS-1149, adopted on January 2, 1973, and declared itself
to be the Redevelopment Agency vested with all rights, powers, duties privileges and immunities
thereof, pursuant to Health and Safety Code Section 33200. The powers of the Agency include the
power to incur indebtedness for any of its corporate purposes.
2. The Community Redevelopment Law of the State of California provides that City
and Agency may enter into an agreement between themselves to provide funds, services, and costs
from City to Agency, as budgeted annually.
3. The patties desire to formally contract in order for the City to provide staff services
to the Agency and to construct improvements of benefit to the redevelopment program under
specified circumstances, subject to reimbursement by the Agency as provided in this Agreement.
4. The parties hereto previously entered into an agreement dated September 15, 1980,
which was later amended on June 17, 2003 (Agreement A-2003-133) as many of the terms and
conditions of said Agreement were no longer applicable due to changes in redevelopment law and
auditing guidelines.
The parties now desire to amend and update said Agreements.
WHEREFORE, for and in consideration of their nmhial covenants and promises,
hereinafter set forth, and subject to the terms, conditions and other provisions of this Agreement
hereinafter set forth, the parties hereto do hereby agree as follows:
1
3 - 2~ EXHIBIT 2
GENERAL
A. Agency and City shall each retain all powers and functions authorized bylaw,
except as delegated or granted in this Agreement.
B. The Executive Director of Agency shall be an employee of City in the excepted
service as provided by City Charter Section 1002 (a) (b), and shall be appointed by the City
Manager of City, with the advice and consent of Agency. The Executive Director shall have as
his/her duties and finctions the day to day administrative responsibility for carrying out Agency
progtarns and affairs, subject to the general direction of the City Manager. The Executive Director
shall select, appoint, employ and contract for agents, consultants and employees as required by
Agency and approved by the City Manager, prepare the animal budget for Agency, and shall catty
out all Agency redevelopment projects.
C. Tlris Agreement hereby replaces, rescinds and supersedes that certain agreement
between City and Agency dated September I5, 1980, and the Amendment thereto dated June 17,
2003.
II.
CITY SERVICES AND FACILITIES
A. City services, such as legal, engineering, accounting, printing, copying, inspection
and project management services, insurance, fleet supplies, planning, personnel, etc., and the use of
City facilities shall be made available by City to Agency and the Community Redevelopment and
Housing Comurissiou at City's actual cost.
B. Agency agrees to reimburse City for all services and facilities provided hereunder to
Agency as follows:
1. Office space shall be paid for by Agency at the same rate per square foot per
month as charged to City departments during the term of this Agreement. All rental rates shall be
provided to Agency for their approval, on an annual basis, identical to the mamrer in which shnilar
information is provided to City departments.
2. Equipment used by Agency and its Commission, and owned by City, shall be
paid for at the same rates and costs per month that are chargeable to any City depatttnents during
the term of this Agreement on an annual basis, identical to the manner in which similar information
is provided to City departments for budgetary projections.
3. The use of City Council Chambers and various meeting rooms owned and
operated by City shall be made available, when not in conflict with prior City engagements, to
Agency and its Commission, at no cost to Agency or its Commmission.
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4. Salary and benefits paid to City employees who devote full-time or part-time to
Agency activities, shall be reimbursed to City in amounts equal to the gross salary for each
employee for hours worked, plus amounts equal to the costs to City of the employee's benefits for
such hours worked. Salary and wage projections shall be provided to Agency on au annual basis,
identical to the manner in which similar information is provided to City departments.
5. The costs of all other services and facilities of City which are used in whole or in
part by Agency, shall be reimbursed to City by Agency at City's ach~al direct and indirect cost
therefor.
6. If the City and Agency so authorize, the City may incur costs for public
improvements in the Project Area on behalf of the Agency. These costs shall become a debt of the
Agency and shall be reimbursable as provided herein.
III.
FUNDS OF AGENCY
A. City may maintain an Administrative fiord in the Treasury of City, with the money
appropriated paid to Agency as a loan to be repaid upon such terms and conditions as the
City Council of City may provide. In the event the City Cotmcil of City does not
appropriate money to the administrative fund, the administrative expenses of Agency shall
be paid from tax icrements, bonding, revolving, or comm~mity development fiords, or any
other lawful source.
B. Funds appropriated by the City Council of City to the Redevelopment Project Fund(s) shall
be maintained in such Fturd(s) in City's Treasury. Such funds maybe grant or loan to
Agency.
C. Agency, at its discretion, may cause any bond or note proceeds received to be deposited in
auy fiord or fiords that it may create or designate, as it deems appropriate, as authorized by
Health and Safety Code Section 33654.
D. Locus under this Agreement shall commence on July 1:r or on the date such
expenditures were or are made, and loan balances shall accrue as such additional loans are
incurred. Agency shall not be responsible for the repayment of any of said loans until fiords
are available to Agency for such purpose. Once funds become available from which
Agency may pay any debt accrued pursuant to this Agreement, then all such debts therefore
accrued shall be paid in a time and mamrer consistent with the needs of Agency. Agency
may, at its discretion, prepay any part of the Indebtedness any anytime without penalty.
E. Each repayment or reimbursement obligation of the Agency pursuant to this Agreement
shall bear interest based on the average interest earned on the City's inveshnent pool.
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F. A report of the unpaid balance on Agency's loans owed City shall be prepared on an annual
basis, and submitted to the City Council. Agency's obligation for repayment shall be
subordinate to any Agency bonded indebtedness approved by the City Council and
Agency.
G. Except as may otherwise provided in any bond indenture, all funds of Agency, and the
investment thereof, from whatever source derived, shall be maintained in the Treasury of
City and administered on behalf of Agency by the Director of Finance of City, as directed
by Agency and approved by the Executive Director. Said funds shall be maintained in
separate accounts unrelated to the accounts of City.
H. Agency shall secure an armual independent audit by a certified public accountant of all
financial books, accounts, papers and records of Agency.
IV.
PERSONNEL MATTERS
A. Agency shall have access to services and facilities of the Planning Department, the City
Engineer, and other departments and offices of City, pursuant to Health and Safety Code
Section 33126(a).
B. City shall provide Agency with persomnel services comparable to those being provided
department's City. Such services shall include position classification, wages and salary
admirrishation, recruitment, selection and examination, labor relations, worker's
compensation, grievance, affirmative action and equal employment opportunity programs,
employee counseling, perfonuance evaluation, fringe benefit administration (including, but
not limited to, medical and life insurance, retirement system, vacation and sick leave
provisions), certification of payroll attendance records, training, personnel records,
management, and persomnel board activities. These services shall be focused on the
particular character of a redevelopment organization.
C. The Agency follows the City's Persomrel Policy, rules and regulations, including
procedures affecting conflict of interest, use of funds and procedures on hiring and firing
(Health and Safety Code Sections 33126 and 33128).
V.
INSURANCE
City agrees to name Agency, its officers and employees as additional insured on
City's municipal liability excess coverage insurance, property insurance, and on City's other
policies as needed. Agency shall reimburse City for the additional cost, if any, of naming Agency
as additional insured on such policy or polices.
4
3-24
VI.
REVIEW
This Agreement shall be subject to annual review by the Community
Redevelopment Agency and City.
VII.
MISCELLANEOUS
A. Brown Act. The Agency meetings are noticed, open and public as required by the
Ralph M. Brown Act (Government Code section 54950, et seq., as amended).
B. Public Records Act. The Agency complies with the Public Records Act
(Government Code section 6250, et. seq, as amended) and unless a records clearly
falls within an exception, such records are made available to the public in
compliance with the City's policies and procedures.
C. Political Reform Act. The Agency board members comply with the conflict of
interest rules promulgated by the Political Reform Act inconformity with State
law[Govermnent Code Section 87300, as amended]. (Reference Resolution No. 74-
4).
D. CEQA Guidelines. The Agency has adopted procedures for implementation of
California Envirotmrent Quality Act of 1970 and the State CEQA Guidelines
[Public Resources Code section 21001(f) and (g); and 14 Code of Regulations
Section 15022, as amended]. (Reference Resolution No. 75-4). The Agency
follows City policies and procedures with regard to CEQA.
E. Governing Law• This Agreement and all questions relating to its validity,
interpretation, performance, and enforcement shall be governed and conshued in
accordance with the laws of the State of California.
F. Amendment. This Agreement may be amended as the parties hereto may mutually
agree by an inshument in writing executed by the patties hereto.
G. Newspaper of General Circulation. The Agency follows City policies and
procedures as to designation of the newspaper of general circulation which will be
used when the Agency is required to give notice regarding redevelopment matters
within the community (Govermnent Code Section 6040, as amended).
H. Review of Bond Document Covenants. The Agency has established a routine audit
and control procedure that ensures that the Agency's ongoing activities comply with
the bond document covenants.
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IN WITNESS WHEREOF, the parties hereto have executed this Second Amended Agreement the
date and year first ahove written.
ATTEST:
Maria D. Huizar
Clerk of the Council
CITY OF SANTA ANA
By:
David N. Ream
City Manager
ATTEST:
Maria D. Huizar
Secretary
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney/Agency General Counsel
By: Lisa E. Storck
Assistant City Attorney/Assistant Counsel
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA
By:
Cynthia J. Nelson
Executive Director
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