Resolution - 2012-73RESOLUTION NO: 2012-73.
A RESOLUTION OF THE CITY COUNCIL. ACTING AS THE
SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT
AGENCY APPROVING A COOPERATIVE AGREEMENT FOR
ADVANCE AND REIMBURSEMENT OF OVERSIGHT BOARD
GENERAL COUNSEL WITH THE CITY OF WEST COVINA
WHEREAS, pursuant to AB 1X 26, the West Covina Redevelopment Agency was
dissolved, effective February 1, 2012 and the Successor', Agency for the West Covina
Redevelopment Agency ("Successor Agency") has succeeded to certain assets and liabilities of
the former Redevelopment Agency.
WHEREAS, as clarified under AB 1484, the Successor Agency is a public entity
separate and distinct from the City.
WHEREAS,. pursuant to AB 1X 26 and AB 1484, 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 Redevelopment Agency of the City of West Covina.
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 CDC,
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 may loan or
grant funds to the Successor Agency for administrative costs, enforceable obligations, or project -
related expenses at the City's discretion.
WHEREAS, pursuant to Health and Safety Code Sections 34178(a) and 34180(h), with
the approval of the oversight board, the Successor Agency may enter into agreements with the
City.
WHEREAS, the Successor Agency wishes to enter into an agreement with the City
entitled "Cooperative Agreement for Advance and Reimbursement of Oversight Board General
Counsel " (the "Cooperative Agreement"; copy attached to this Resolution as Exhibit A),
whereby the City would advance to the Successor Agency the funds to pay for Oversight Board
general counsel for the period between July 1, 2012 and December 1, 2012, in exchange for the
Successor Agency reimbursing to the City all costs therefore from future funds received by the
Successor Agency, to the extent permitted by law.
WHEREAS, approval of the Cooperative Agreement by the West Covina Oversight
Board ("Oversight Board") is necessary in order for the Cooperative Agreement to be legally
binding on the City and Successor Agency, and the Successor Agency supports the submission
of the Cooperative Agreement to the Oversight Board in furtherance of obtaining such approval.
WHEREAS, the Cooperative Agreement is legally permitted pursuant to the authorities
cited above.
WHEREAS, upon approval by the Oversight Board, the Cooperative Agreement must be
listed on the Successor Agency's ROPS, and must be approved as an item therein, in order to be
enforceable, as must all future costs which the Successor Agency seeks to reimburse to the City'
pursuant to the Cooperative Agreement.
NOW, THEREFORE, the City Council acting as the Successor Agency to the West
Covina Redevelopment Agency hereby resolves:
SECTION 1. The above recitals are true and correct. and are a substantive part of this
Resolution.
Resolution No. 2012-73
Page 2
SECTION 2. This Resolution is adopted pursuant to Sections 34171(d)(1)(F), 34173(h),
34177.3(b), and other applicable provisions of Part 1.85 of the Health and Safety Code, and
pursuant to the Successor Agency's other powers under the laws of the State of California
authorizing the Successor Agency to enter into the Cooperative Agreement and undertake all
obligations pursuant thereto.
SECTION 3. The Successor Agency hereby approves the Cooperative Agreement in
substantially the form as attached hereto as Exhibit A. .
SECTION 4. The Successor Agency hereby directs the Executive Director or his/her
designee to execute the Cooperative Agreement and undertake any and all actions necessary to
implement the Cooperative Agreement, including but not limited to: performing the obligations
provided in the Cooperative Agreement; overseeing and directing the necessary staff, facilities,
and other resources advanced to the Successor Agency by the City; seeking Oversight Board
approval of the Cooperative Agreement; listing the Cooperative Agreement, and costs for
resources advanced pursuant thereto, on Successor Agency ROPS; and undertaking such other
actions to cause costs to be reimbursed to the City in conformance with the requirements of the
Cooperative Agreement and State law.
SECTION 5. The Successor Agency hereby formally requests that the Oversight Board
approve the Cooperative Agreement and all Successor Agency ROPS items relating thereto.
SECTION 6. The Successor Agency Secretary shall certify to the adoption of this
Resolution.
APPROVED AND ADOPTED on this 21 st day of August, 2012.
Mike ouhey, Governing Board ChairQn
Successor Agency of the former West Covina
ATTEST: Redevelopment Agency
usan Rush S4cess6r Agency Secretary
I, SUSAN RUSH, SUCCESSOR AGENCY SECRETARY TO THE FORMER WEST
COVINA REDEVELOPMENT AGENCY, HEREBY CERTIFY that the foregoing resolution
was duly adopted by the by the Governing Board of the Successor Agency to the former West
Covina Redevelopment Agency at a Regular meeting held on the 21St day of August 2012 by the
following vote:
AYES: Herfert, Sanderson, Sotelo, Sykes, Touhey
NOES: None
ABSENT: None
ABSTAIN: None
/ .O Vt., ry- j y io7o. - ,
Susan Rush, Successor Agency Secretary
Successor Agency.of the fo"rmer West Covina
Redevelopment Agency
APPROVED AS TO FORM;
Successor Agency Counsel
COOPERATIVE AGREEMENT FOR 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 Managet 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
inforniation 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.
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 perfonn 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 feimbursed
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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
ATT
IN
Assistant. City Clerk/Assistant Successor
Agency Secretary
APPROVED AS TO FORM:
Arnold M.. Alvarez-Glasman
City Attorney/Successor Agency Counsel
4
THE CITY OF WEST COVINA (the
"CITY")
By:
n rew asmant, City Manager
Date:
to /1.IL, /1�-
THE SUCCESSOR AGENCY TO THE
FORMER WEST COVINA
REDEVELOPMENT AGENCY
(the "Successor Age cy")
By:
Andrew Pasmant, Executive Director
Date: 10 wr Z— -