Resolution - 2012-68RESOLUTION NO.2012-68
A RESOLUTION OF THE CITY OF WEST COVINA APPROVING A
COOPERATIVE AGREEMENT WITH THE SUCCESSOR AGENCY TO
THE FORMER WEST COVINA REDEVELOPMENT AGENCY FOR THE
.ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE COSTS,
ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED EXPENSES
WHEREAS, the Successor Agency to the former West Covina Redevelopment Agency
("Successor Agency") is required to undertake a number of actions pursuant to Part 1.85 of the
Community Redevelopment Law (commencing with Health and Safety Code Section 34170
("Part 1.85"), including winding down the affairs of the former Redevelopment Agency
("Agency");
WHEREAS, in June 2012, the State Legislature enacted Assembly Bill ("AB") 1484
which amended AB 26 and clarified the definition of "enforceable obligations";
WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or
agreements necessary for the administration or operation of the Successor Agency are
enforceable obligations;
WHEREAS, pursuant to Health and Safety Code Section 34177.3(b), the Successor
Agency may create enforceable obligations to conduct the work of winding down the Agency,
including hiring staff, acquiring necessary professional administrative services and legal counsel,
and procuring insurance;
WHEREAS, pursuant to Health and Safety Code Section 34173(h), the city that
authorized the creation of a redevelopment agency may loan or grant funds to a successor agency
for administrative costs, enforceable obligations, or project related expenses at the city's
discretion and, subject to the Oversight Board's approval, such loan or grant from the city shall
be deemed an enforceable obligation;
WHEREAS, in connection with the administration and operations of the Successor
Agency, the Successor Agency is and will be utilizing .the staff; facilities, and other resources of
the City of West Covina ("City");.
WHEREAS, the City desires to and has agreed to advance to the Successor Agency the
staff, facilities, and other resources necessary for the Successor Agency to perform its
obligations under Part 1.85, in exchange for the reimbursement of the costs therefore from future
funds received by the Successor Agency, to the extent permitted by law;
WHEREAS, the City finds and declares that advancing such staff, facilities, and other
resources to the Successor Agency will further the general health, safety, and welfare of its
citizens by aiding the Successor Agency in accomplishing its statutory objectives of
expeditiously winding down the affairs of the former Agency;
WHEREAS, the City recognizes that the Oversight Board to the Successor Agency
("Oversight Board") is required to undertake a number of actions pursuant to Part 1.85, including
overseeing and approving actions of the Successor Agency as are enumerated in Health and
Safety Code Section 34180, and, in connection with performing those obligations, is and will be
utilizing the staff, facilities, and other resources of the Successor Agency;
WHEREAS, the City has agreed to advance to the Successor Agency the staff, facilities,
and other resources necessary to assist the Oversight Board in performing its obligations under
Part 1.85, including advancing the funds to the Successor Agency necessary for the Oversight
Board to retain independent legal counsel and/or teclmical advisors; and
WHEREAS, the City desires to memorialize its understanding with the Successor
Agency and provide for an appropriate method of reimbursement of such advances and/or loans
-by the City to the Successor Agency.
Resolution No. 2012-68
Page 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
SECTION 1. The City Council hereby finds and determines that the forgoing recitals
are true and correct, constitute a material part of this Resolution, and therefore incorporate them
herein in their entirety as part of the findings.
SECTION 2. The City Council hereby finds and determines that a "cooperative
agreement" memorializing its understanding with the Successor Agency and providing for an
appropriate method of reimbursement of the City's advance of staff, facilities, and other
resources will aid the Successor Agency in satisfying its obligations under Part 1.85.
SECTION 3. The City Council hereby approves that certain agreement, titled
"Cooperative Agreement For Advance And Reimbursement Of Administrative Costs,
Enforceable Obligations, And Project Related Expenses" ("Cooperative Agreement") that is
attached hereto as Exhibit "A."
SECTION 4. The City Council hereby authorizes the City Manager, or their designee, to
execute the Cooperative Agreement and any reasonably related agreement(s) necessary to carry
out its purpose on behalf of the City.
SECTION 5. The City Council hereby acknowledges that the Cooperative Agreement
requires the approval of the Oversight Board to the Successor Agency before becoming effective.
SECTION 6. If any part of this Resolution or its application is held to be invalid, the
remainder of the Resolution shall not be affected and shall continue in full force and effect.
SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution
and the same shall thereupon take effect and be in force immediately upon its adoption.
APPROVED AND ADOPTED on this 21St day of August 2012.
"yo chael To, uhey
ATTEST:
h
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City Clerk Laurie Catfico:-.:
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 21St day of August 2012 by the following vote
of the City Council:
AYES: Herfert, Sanderson, Sotelo, Sykes, Touhey
NOES: None
ABSENT: None
ABSTAIN: None ' f'
L
City Clerk Laurie Carrico
APPROVED AS TO FORM:
SOX
ity tto e rnold Alvarez-Glasman
COOPERATIVE AGREEMENT F.OR ADVANCE AND
REIMBURSEMENT OF ADMINISTRATIVE COSTS,
ENFORCEABLE OBLIGATIONS, AND PROJECT
RELATED EXPENSES
This COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF
ADMINISTRATIVE COSTS, ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED
EXPENSES (this "Agreement") is entered into as of August 21, 2012 by and between the City of
West Covina (the "City") and the Successor Agency to the West Covina Redevelopment Agency
(the "Successor Agency").
RECITALS:
WHEREAS, the Successor Agency is required to undertake a number of actions
pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and
Safety Code Section 34170) ("Part 1.85"), including winding down the affairs of the former
West Covina Redevelopment Agency ("Agency") as required by Health and Safety Code Section
34177(h).
WHEREAS, in June 2012, the State Legislature enacted AB 1484 which amended AB
26 clarifying the definition of "enforceable obligations."
WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or
agreements necessary for the administration or operation of the Successor Agency are
enforceable obligations.
WHEREAS, pursuant to Health and Safety Code Section 34177.3(b), the Successor
Agency may create enforceable obligations to conduct, the work of winding down the
Redevelopment Agency, including hiring staff, acquiring necessary professional administrative
services and legal counsel, and procuring insurance.
WHEREAS, pursuant to Health and Safety Code Section 34173(h), the city that
authorized the creation of a redevelopment agency may loan or grant funds to a successor agency
for administrative costs, enforceable .obligations, or project related expenses at the city's
discretion and, subject to the oversight board's approval, such loan or grant from the city shall be
deemed an enforceable obligation.
WHEREAS, in connection with the administrative costs, enforceable obligations, project
related expenses, and the general operations of the Successor Agency in accordance with Part
1.85, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the
City.
WHEREAS, the City Manager of the City serves as Executive Director of the Successor
Agency, the City Treasurer serves as Finance Officer of the Successor Agency, and the City
Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public
works, and other. City departments devote, and are expected to devote, substantial time with
Cooperative Agreement .
City and Successor Agency August 21, 2012
respect to the administration and operations of the Successor Agency, including gathering
information relating to the Agency's enforceable obligations, conferring with public officials
representing governmental agencies, and undertaking other activities in connection with winding
down the affairs of the Agency required under Part 1.85.
WHEREAS, by providing and making available to the Successor Agency the staff,
facilities, services, and other resources of the City, including, without limitation, consultants,
legal counsel, office space, equipment, supplies, and insurance, necessary to the administration
and operations of the Successor Agency, the City has advanced and will continue to advance the
cost of the foregoing to the Successor Agency.
WHEREAS, the City and Successor Agency recognized that the Oversight Board to the
Successor Agency ("Oversight Board") is required to undertake a number of actions pursuant to
Part 1.85, including overseeing and approving actions of the Successor Agency as are
enumerated in Health and Safety Code Section 34180, and, in connection with performing those
obligations, is and will be utilizing the staff, facilities, and other resources of the Successor
Agency.
WHEREAS, the City and Successor Agency recognize that the Oversight Board may
require independent legal counsel and/or technical advisors to perform its obligations under Part
1.85.
WHEREAS, the City is and will be advancing to the Successor Agency the staff,
facilities, and other resources necessary to assist the Oversight Board in performing its
obligations under Part 1.85, including advancing the funds to the Successor Agency necessary
for the Oversight Board to. retain independent legal counsel and/or technical advisors.
WHEREAS, the City and the Successor Agency .desire to enter into this Agreement to
acknowledge the foregoing recitals and to memorialize the mutual understanding between City.
and Successor. Agency, and provide for an appropriate method of reimbursement of such
advances and/or loans by the City to the Successor Agency.
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NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS:
Section 1. The City agrees to make available to the Successor Agency its staff,
facilities, services, and other resources, including, without limitation, consultants, legal counsel,
office space, equipment, supplies, and insurance, necessary to the administration and operations
of the Successor Agency and the Oversight Board and, where necessary, advances or loans to the
Successor Agency for administrative costs, enforceable. obligations, and project related expenses.
The Successor Agency desires to have access to and utilize the foregoing staff, facilities,
services, and other resources of the City as may be required to perform its obligations under AB
26 and amendments thereto.
Section 2. The City agrees to advance funds to the Successor Agency for Oversight
Board legal services and/or technical advisors for July 2012 to December 2012, to be reimbursed
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Cooperative Agreement
City and Successor Agency August 21, 2012
under the Recognized Obligations Payment Schedule ("ROPS") for January 1, 2013 to June
2013, and to advance such other funds in future ROPS payment periods as is reasonably
necessary to allow the Oversight Board to retain legal services and/or technical advisors, with
such advances to be reimbursed to the City pursuant to Sections 4 and 5 below.
Section 3. The value of the City staff, including all employee salaries, retirement and
other benefits, facilities, services, and other resources of the City, including but not limited to,
office space, equipment, supplies, and insurance, necessary, to the administration and operations
of the Successor Agency made, and to be made, available to the Successor Agency for each six-
month fiscal period beginning with the fiscal period commencing on January 1, 2012 and ending
on June 30, 2012, calculated and determined .in accordance with Section 4 hereof, shall be
determined necessary for the administration and operation of the Successor Agency for purposes
of Health and Safety Code § 34171(d)(1)(F) and constitute an advance and loan to the Successor
Agency as authorized pursuant to Health and Safety Code § 34173(h) by the City for each six-
month fiscal period, to be repaid in accordance with Section 4 of this Agreement.
Section 4. The City shall prepare a cost analysis based upon reasonable allocations
and generally accepted accounting principles documenting: (a) the value of any administrative
costs paid for by the City, including, but not limited to, all employee salaries, retirement and
other benefits, and the facilities, services, and other resources of the City made, or to be made
available, to the Successor Agency pursuant to Section 1 hereof; (b) any City advances or loans
used to pay for any Administrative Costs or Enforceable 'Obligation(s), including those advances
made pursuant to Section 2 hereof, and (c) any City advances or loans used to pay for any project
related expenses for each six-month fiscal period beginning with the first fiscal period
commencing on January 1, 2012 and ending on June 30, 2012 ("Expenses"). The parties hereto
agree to take all appropriate steps and execute any documents which may reasonably be
necessary or convenient to implement the intent of this Agreement.
Section 5. Each party shall maintain books and records regarding its duties pursuant
to this Agreement. Such books and records shall be available for inspection by the officers and
agents of the other party at all reasonable times.
Section 6. This Agreement is made in the State of California under the Constitution
and laws of the State of California, and is to be so construed:
Section 7. This Agreement will be become effective upon approval of the Oversight
Board to the Successor Agency.
Section 8. This Agreement may be amended at any time, and from time to time, by
an agreement executed by both parties to this Agreement and approved by the Oversight Board
to the Successor Agency.
[SIGNATURES ON THE FOLLOWING PAGE]
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Cooperative Agreement
City and Successor Agency August 21, 2012
THE CITY OF WEST COVINA (the
"CITY")
By:
n rew asmant, City Manager
Date:
THE SUCCESSOR AGENCY TO THE
FORMER WEST COVINA
REDEVELOPMENT AGENCY
(the "Successor Age cy")
By:
-J
Andrew Pasmant, Executive Director
Date:
ATTEST:
By: �w P
Susan Rush
Assistant City Clerk/Assistant Successor
Agency Secretary
APPROVED AS TO FORM:
� 5Y
Arnold M. Alvarez-Glasman
City Attorney/Successor Agency Counsel
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