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HomeMy WebLinkAbout2 - RESO - AGREEMENTS FROM FORMER CRAREQUEST FOR SUCCESSOR AGENCY ACTION MEETING DATE: MAY 7, 2012 TITLE: SUCCESSOR AGENCY ADOPTION OF RESOLUTION ASSUMING ASSIGNMENT OF ALL AGREEMENTS & CONTRACTUAL OBLIGATIONS OF FORMER REDEVELOPMENT AGENCY LL ?_ CITY MANAGER RECOMMENDED ACTION CLERK OF THE COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Implementing Resolution ? Other CONTINUED TO FILE NUMBER It is recommended that the City Council acting as the Successor Agency to the former Agency: Adopt a Resolution Assuming the Assignment of all of the Agreements and Contractual Obligations of the Former Redevelopment Agency to the Successor Agency. DISCUSSION The California Supreme Court's decision in California Redevelopment Association, et al. V. Matosantos ("Matosantos") upheld Assembly Bill X1 26, the "Dissolution Act." AB X1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which caused the dissolution and winding down of all California redevelopment agencies. By resolution, the City Council on January 9, 2012, elected for the City to act as the "Successor Agency" to the community's dissolved redevelopment agency ("Agency") and the Housing Authority of the City of Santa Ana as "Successor Housing Agency." On February 1, 2012, the Agency was dissolved and the City began to serve as the Successor Agency to the former Redevelopment Agency. The City is performing 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, most of which are subject to the review and approval by a seven-member Oversight Board. With the dissolution of the Agency, all assets properties, contracts, leases, books and records, buildings and equipment of the former Agency (except for most affordable housing assets) transferred by operation of law to the City of Santa Ana, acting as Successor Agency. To further ensure that Agency agreements related to services and work product are vested correctly, legal counsel has recommended that such agreements be more formally assigned to the Successor Agency (Exhibit 1). 2-1 Resolution Assigning Agreements to Successor Agency May 7, 2012 Page 2 FISCAL IMPACT California Health and Safety Code Section 34173(e) stipulates 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. r la,n Lqc-? Nancy T. E rds Interim Exec ive Director Community Development Agency NTE/SG/mlr Exhibit 1. Assignment of Agreements Resolution 2-2 5/1/12 LES SUCCESSOR AGENCY RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY ASSUMING ASSIGNMENT OF ALL AGREEMENTS AND CONTRACTUAL OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, hereby finds, determines and declares as follows: A. The California Supreme Court's decision in the recent Califomia Redevelopment Agency v. Matosantos case upheld ABX1 26 which will now control the dissolution and winding down of every California redevelopment agency. ABX1 26 prohibits agencies from taking numerous actions, requires all agencies to wind down their affairs effective immediately, and provides that agencies are deemed to be dissolved as of February 1, 2012. B. On January 9, 2012, pursuant to section 34173 of the California Health & Safety Code, the City of Santa Ana ("City") elected to serve as the Successor Agency for the former Community Redevelopment Agency ("Agency") of the City of Santa Ana and the Housing Authority of the City of Santa Ana as "Successor Housing Agency". C. The City 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, with most actions subject to the review and approval of a seven member Oversight Board. D. With the dissolution of the Agency, all assets, properties, contracts, leases, books and records, buildings and equipment of the former Agency (except for most affordable housing assets) transferred by operation of law to the City of Santa Ana, acting as Successor Agency. G. To further ensure that Agency agreements and contracts related to services and work product are vested correctly, the City, acting as Successor Agency, desires to take formal action to assume the assignment of all such agreements and contracts of the former Agency, by adoption of this resolution. H. The City, acting as Successor Agency, hereby assumes the assignment of all such agreements and contracts of the former Agency, as listed on Exhibit A, attached hereto and incorporated herein by this reference. 1. 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 2-3 5/1/12 LES 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. Section 2. The City, acting as Successor Agency, does hereby assume the assignment of all agreements and contractual obligations of the former Agency as described herein and set forth Exhibit A, attached hereto and incorporated herein by this reference, subject to the limitations of Health and Safety Code Section 34173(e). Section 3. The City Manager or his or her designee is hereby authorized to make amendments to Exhibit A as deemed necessary for any corrective action or caused by or due to any inadvertent omission. Section 4. The Clerk of the Council shall attest to and certify the vote adopting this Resolution. 2 2-4 5/1/12 LES ADOPTED this day of Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 2012. Lisa E. Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2012- to be the original resolution adopted by the City Council acting as the Successor Agency on May , 2012. Date: Maria D. Huizar, Clerk of the Council 3 2-5 EXHIBIT A The City, acting as the Successor Agency, assumes the assignment of all agreements and contracts of the former Community Redevelopment Agency of the City of Santa Ana listed below: Consuikant / Vendor Name Agreement Date Agreement Number (if applicable) AmeriNational Community Services, Inc. July 18, 1994 N/A BLX Group LLC June 1, 2011 1011-RN-049 C & V Consulting, Inc June 20, 2011 1011-RN-051 Clark & Green June 12, 2009 N/A Converse Consultants October 22, 2010 1011-RN-012 CSG Advisors November 17, 2008 N/A Hunsaker & Associates Irvine, Inc. February 3, 2011 1011-RN-022 Overland, Pacific & Cutler, Inc. February 16, 2010 N/A Jensen Consultants December 1, 2011 1112-RN-007 Keyser Marston Associates, Inc. March 15, 2004 N/A Lidgard and Associates, Inc. September 19, 2005 N/A Lidgard and Associates, Inc. December 1, 2009 N/A Madrid & Associates December 1, 2011 1112-RN-005 Paragon Partners, Ltd. September 19, 2005 N/A Sally Low & Associates, Inc. January 1, 2009 N/A Stradling Yocca Carlson & Rauth February 1, 2010 N/A 2-6