HomeMy WebLinkAbout2011-09-28 e-packet SPECIAL MEETING
� ,,„ S•4,,, , REDEVELOPMENT AGENCY
r . OF THE
" _-: "— CITY OF SOUTH SAN FRANCISCO
– P.O. Box 711 (City Hall, 400 Grand Avenue)
c ' IFOR l' South San Francisco, California 94083
Meeting to be held at:
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, SEPTEMBER 28, 2011
6:30 P.M.
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the
State of California, the Redevelopment Agency of the City of South San Francisco will hold a
Special Meeting on Wednesday, the 28 day of September, 2011, at 6:30 p.m., in the Municipal
Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California.
Purpose of the meeting:
1. Call to Order.
2. Roll Call.
3. Agenda Review.
4. Public Comments – comments are limited to items on the Special Meeting
Agenda.
5. Resolution of the Redevelopment Agency of the City of South San Francisco
acknowledging and approving certain payments and reimbursements to the City of
South San Francisco
6. Closed Session: Conference with Legal Counsel.
Existing Litigation.
(Pursuant to Government Code Section 54956.9(a).)
Metwally vs. City of South San Francisco /South San
Francisco RDA .
7. Adjournment.
City Clerk, City of South San Francisco
4,° °? s � Redevelopment Agency
J R � StaffReport
� c ''�L IF �
DATE: September 28, 2011
TO: Redevelopment Agency Board
FROM: Jim Steele, Finance Officer
SUBJECT: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SOUTH SAN FRANCISCO ACKNOWLEDGING AND APPROVING
CERTAIN PAYMENTS AND REIMBURSEMENTS TO THE CITY OF
SOUTH SAN FRANCISCO
RECOMMENDATION
Staff recommends that the Agency Board adopt the attached resolution: (i) authorizing the Agency's
payment of a proportional share of various expenses described below, (ii) agreeing to enter into a written
agreement with the City regarding continuation of such payments when the Agency is permitted to enter
into new contracts, and (iii) directing staff to list such payment obligations on the Agency's 2011 -12
Statement of Indebtedness, due to San Mateo County by September 30, 2011.
BACKGROUND/DISCUSSION
Pursuant to the recently passed State legislation AB x 1 26 (Part 1.8 of Division 24 of the Health and
Safety Code commencing with Section 34161), Redevelopment Agencies are currently not permitted to
enter into new contracts. The California Redevelopment Association (CRA) has filed a petition with the
California Supreme Court seeking invalidation of AB xl 26 and AB xl 27. However, the Agency must
still file its annual required report with the County and the State, the Statement of Indebtedness (SOI). In
order to complete that report, it would be in the Agency's interest to list two types of expenses for which
no contractual obligations are formally in place at this time. The two types of expenses are: overhead,
staff and property maintenance expenses; and AB xl 27 Remittance Payments. The purpose of this
resolution is to have the Board express its intention for the Agency to make these two types of expenses.
By doing so, the Agency will be able to include these expenses on the SOI, which is due Friday
September 30. If AB xl 27 is upheld, it includes language that would increase the city's remittance
payment obligation in future years based on "new debt ", which is interpreted to mean obligations that are
not listed on the SOI filed September 30, 2011. Therefore it is in the Agency's interest to include these
expenses on the SOI to reduce the impact of future remittance payments that the Agency will owe.
Overhead, Staff and Property Maintenance Expenses
The Redevelopment Agency has historically paid or reimbursed the City for a proportional share of
City employee, property maintenance, and overhead and administrative costs and expenses that are
necessary for the operation of the Agency and the carrying out of redevelopment activities
( "Overhead, Staff and Property Maintenance Expenses ").
Staff Report
Subject: Resolution Acknowledging and Approving Certain Payments and Reimbursements to the City.
Page 2
AB x 1 27 Remittance Payments
If AB xl 26 and 27 are upheld by the California Supreme Court, the Redevelopment Agency may
continue to operate if the City adopts an ordinance ( "Remittance Ordinance ") obligating the City to
make certain annual remittances to the San Mateo County Auditor - Controller ( "Remittances "). Pursuant
to AB xl 27, the City and the Agency may enter into an agreement whereby the Agency will annually
transfer a portion of its Redevelopment tax increment to the City in an amount not to exceed the
Remittances for the purpose of financing activities within the Redevelopment Project Areas that are
related to accomplishing the Agency goals ( "Remittance Agreement ").
FISCAL IMPACT
There is no fiscal impact directly incurred from adopting the attached resolution at this time. Adopting it
will, however, likely have the impact of reducing the growth of future remittance payments to the State in
the future if AB xl 27 is upheld by the Court.
CONCLUSION
Adoption of the attached resolution provides positive potential future dollar impacts for the
Redevelopment Agency.
By: Approve ∎∎
Jim leele : t' , Nagel
Fin. ce Officer Executive Director
Attachment: Resolution
JSBN:ed
RESOLUTION NO.
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH
SAN FRANCISCO ACKNOWLEDGING AND APPROVING CERTAIN PAYMENTS
AND REIMBURSEMENTS TO THE CITY OF SOUTH SAN FRANCISCO
WHEREAS, the South San Francisco Redevelopment Agency ( "Agency ") is a
redevelopment agency formed, existing and exercising its powers pursuant to California
Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("CRL");
WHEREAS, pursuant to authority granted under the CRL, the City Council ( "City
Council") of the City of South San Francisco ( "City ") has adopted and amended, from time to time,
Redevelopment Plans (the "Redevelopment Plans ") for the Shearwater Project Area, Downtown
Central Project Area, Gateway Project Area and the El Camino Project Area (the "Project Areas ");
WHEREAS, the Agency has the responsibility to implement the Redevelopment Plans in
accordance with the CRL;
WHEREAS, pursuant to Part 1.9 of Division 24 of the Health and Safety Code
(commencing with Section 34192) ( "Part 1.9 "), the City may adopt an Ordinance as specified in
Section 34193 (the "Remittance Ordinance "), agreeing to make certain annual remittances to
the San Mateo County Auditor - Controller ( "Remittances ");
WHEREAS, pursuant to Health and Safety Code Section 34194.2, the City and the
Agency may enter into an agreement whereby the Agency will annually transfer a portion of its
tax increment to the City in an amount not to exceed the Remittances for the purpose of
financing activities within the Project Areas that are related to accomplishing the Agency goals
( "Remittance Agreement ");
WHEREAS, the effectiveness of Part 1.9 has been stayed by order of the California
Supreme Court;
WHEREAS, the Agency has historically paid or reimbursed the City for a proportional
share of certain City employee, property maintenance, and overhead and administrative costs and
expenses that are necessary for the operation of the Agency and the carrying out of
redevelopment activities ( "Overhead, Staff and Property Maintenance Expenses ");
WHEREAS, pursuant to Part 1.8 of Division 24 of the Health and Safety Code
(commencing with Section 34161), the Agency is currently not permitted to enter into new
contracts;
WHEREAS, the Agency Board desires to express its intent that the Agency: (i) continue
to pay a proportional share of Overhead, Staff and Property Maintenance Expenses in proportion
to the benefit derived by the Agency from such services and expenses in furtherance of
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redevelopment activities and Agency operations, and (ii) enter into a formal agreement with the
City for such purpose when the Agency is permitted to do so;
WHEREAS, the Agency Board desires to express its intent that the Agency: (i) make
the payments to the City permitted by Health and Safety Code Section 34194.2, and (ii) enter
into a Remittance Agreement with the City when the City adopts a Remittance Ordinance and
the Agency is permitted to enter into new agreements; and
WHEREAS, the Agency Board desires to ensure that the Agency's payment obligations
as described in this Resolution are included on the Agency's 2011 -12 Statement of Indebtedness,
which staff must turn into the County of San Mateo by September 30, 2011.
NOW, THEREFORE, BE IT RESOLVED THAT THE REDEVELOPMENT
AGENCY OF THE CITY OF SOUTH SAN FRANCISCO HEREBY:
1. Authorizes the Agency to reimburse the City for the Agency's proportional share
of Overhead, Staff and Property Maintenance Expenses as necessary for the operation of the
Agency and the carrying out of redevelopment activities.
2. At such time that the Agency is permitted to execute new agreements, authorizes
the Agency Executive Director to execute an agreement with the City memorializing the
Agency's obligation to pay a proportional share of Overhead, Staff and Property Maintenance
Expenses as necessary for the operation of the Agency and the carrying out of redevelopment
activities in form approved by the Agency Executive Director in consultation with Agency
Counsel.
3. At such time that the Agency is permitted to execute new agreements, provided
that the City has adopted a Remittance Ordinance, authorizes the Agency Executive Director to
execute a Remittance Agreement in form approved by the Agency Executive Director in
consultation with Agency Counsel, pursuant to which the Agency will be obligated to annually
transfer a portion of its tax increment to the City in an amount not to exceed the Remittances.
4. Directs staff to list the Agency's payment obligations described in this Resolution
on the Agency's 2011 -12 Statement of Indebtedness.
5. Authorizes the Agency Executive Director and the Agency Finance Officer to
take such other actions and to execute such other instruments as necessary to carry out the intent
of this Resolution.
* * * * * * *
I hereby certify that the foregoing Resolution was adopted by the Redevelopment Agency
of the City of South San Francisco at a special meeting held on the day of
2011 by the following vote: '
AYES:
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NOES:
ABSTENTIONS:
ABSENT:
Attest:
1717774.1
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