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HomeMy WebLinkAbout2001-08-07; City Council; 16312; Reimbursement of Administrative CostsCITY OF CARLSBAD - AGENDA BILL AB# /L 1 3 \ b TITLE: T-7 *0 / COOPERATION AGREEMENT FOR REIMBURSEMENT MTG. OF ADMINISTRATIVE COSTS AND PROVISION OF DEPT. H/RED FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES RECOMMENDED ACTION: Adopt City Council Resolution No.~ 1 - ZqY APPROVING a Cooperation Agreement between the City of Carlsbad and the Carlsbad Housing and Redevelopment Commission for reimbursement of Administrative Costs and Provision of Financial Assistance for Implementation of Redevelopment Activities in both the Village Redevelopment Area (Redevelopment Area I) and the South Carlsbad Coastal Redevelopment Area (Redevelopment Area II). ITEM EXPLANATION: On October 16, 1979, the City Council declared a need for a Community Development Commission to implement redevelopment activities within the City of Carlsbad. The Commission was activated as the Carlsbad Housing and Redevelopment Commission, and the City Council declared itself to constitute the Commission. The City of Carlsbad and the newly created Housing and Redevelopment Commission entered into a Cooperative Agreement on February 8, 1980 for the purposes of implementing redevelopment activities. At that time, the Cooperative Agreement was most specifically related to reimbursement of administrative costs and provisions of financial assistance for implementation of redevelopment activities within the Village Redevelopment Area which was adopted/established in July, 1981. In July of 2000, the City Council and Housing and Redevelopment Commission took action to establish a second redevelopment area in Carlsbad, which is known as the South Carlsbad Coastal Redevelopment Area. Since the City now has two redevelopment areas, staff is recommending that the subject Cooperative Agreement be updated to include references to both the Village and South Carlsbad Coastal Redevelopment Areas. Cooperative Aqreement Summary The subject Cooperative Agreement sets forth the City-Commission relationship with respect to the implementation of redevelopment activities. The Agreement indicates that the City will provide the Commission with loan proceeds, staff and other administrative services and facilities on an as-needed basis, and make expenditures on behalf of the Commission for activities both within the Village and South Carlsbad Coastal Redevelopment Areas. The purposes of the Cooperative Agreement are to: l Reaffirm the City and Commission’s Cooperative Agreement to provide staff, services and facilities to the Commission in furtherance of the activities and functions of the Commission under Community Redevelopment Law. l Reaffirm that the Commission will reimburse the City for actions undertaken and all costs and expenses incurred by it for and on behalf of the Commission, and will repay loans advanced to the Commission. AB# lL3,3l9 Page 2 l Establish Administrative Funds for the existing Village Redevelopment Area and the newly adopted South Carlsbad Coastal Redevelopment Area, and establish a Revolving Fund, or funds, for the purposes of depositing any loan proceeds provided by the City to the Commission. These Funds are to be established by the City and held in the City Treasury. The obligations of the Commission, whether to repay funds advanced or to reimburse the City for services rendered or expenditures made on the Commission’s behalf, shall constitute an indebtedness of the Commission. The terms of repayment require the Commission to repay the City together with accrued interest calculated at a variable rate based upon the annual average rate of return earned on the City’s investment portfolio as determined by the City Treasurer. Staff Recommendation It is staff’s recommendation that the City Council approve the attached Cooperation Agreement which incorporates by reference the original Cooperative Agreement approved on October 16, 1979. This agreement is an administrative requirement which sets forth the relationship between the City and the Commission as related to reimbursement of administrative costs and provision of financial assistance for the implementation of redevelopment activities both within the Village and South Carlsbad Coastal Redevelopment Areas. The Housing and Redevelopment Commission will take separate action on the Cooperation Agreement. FISCAL IMPACT: The Carlsbad Redevelopment Agency/Housing and Redevelopment Commission currently receives approximately $1.9 million in tax increment proceeds and other revenue for the operation of the existing Village Redevelopment Area and is anticipated to receive approximately $487,000 in revenue for fiscal year 2001-2002 for redevelopment activities within the South Carlsbad Coastal Redevelopment Area. These funds will be utilized to cover the costs of redevelopment activities to the extent possible. If these funds are insufficient to cover costs of the Agency, the subject Cooperation Agreement establishes the relationship which will allow the City to loan the Agency/Commission funding for approved redevelopment activities. These loans will then be repaid in future years from tax increment proceeds or other Agency revenues. At this time, the Redevelopment Agency/Commission has outstanding loans of approximately $12.3 million for the Village Redevelopment Area to be repaid in future years to the City subject to a separate loan agreement. The newly established South Carlsbad Coastal Redevelopment Area has an existing loan debt of approximately $214,000 as a result of the costs associated with adoption of the redevelopment area. EXHIBITS: 1. City Council Resolution No&0t -gqq approving a Cooperation Agreement between the City of Carlsbad and the Carlsbad Housing and Redevelopment Commission for reimbursement of Administrative Costs and the provision of financial assistance for implementation of redevelopment activities. 2. Cooperation Agreement between City of Carlsbad and Carlsbad Housing and Redevelopment Commission. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL RESOLUTION NO. 2001-244 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION FOR REIMBURSEMENT OF ADMINISTRATIVE COSTS AND PROVISION OF FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES. WHEREAS, the City Council of the City of Carlsbad activated the Housing and Redevelopment Commission on October 16, 1979 and declared itself to constitute the Commission for the purposes of implementing redevelopment activities within the City of Carlsbad; and, WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously entered into a cooperative agreement to set forth the relationships between the City and the Commission which was adopted on February 8, 1980 for the purposes of implementing redevelopment activities within the City of Carlsbad; and, WHEREAS, the City and the Housing and Redevelopment Commission desire to continue their relationship as set forth in the previously approved Cooperative Agreement for the implementation of activities in both the Village Redevelopment Area and the South Carlsbad Coastal Redevelopment Area; and WHEREAS, pursuant to the Community Redevelopment Law and previously approved Cooperative Agreement, the Housing and Redevelopment Commission is performing a public function of the City of Carlsbad and may have access to staff and other administrative services and facilities of the City, and may accept financial assistance from the City; and, WHEREAS, the City of Carlsbad and Housing and Redevelopment Commission have a need to set forth their agreement related to the establishment of an Administrative Fund with funds appropriated by the City of Carlsbad as a loan to be repaid as funds are available to the Housing and Redevelopment Commission for such purposes, and to establish a Revolving Fund for the purposes of depositing any loan proceeds provided by the City to the Commission for redevelopment activities. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the Carlsbad City Council, as follows: 1. That the above recitations are true and correct. 2. The City Council does hereby approve the Cooperation Agreement between the City of Carlsbad and the Carlsbad Housing and Redevelopment Commission for reimbursement of administrative costs and provision of financial assistance for implementation of redevelopment activities in both the Village Redevelopment Area and the South Carlsbad Coastal Redevelopment Area. 3. The Mayor is hereby authorized to execute said Cooperation Agreement in substantially the form approved by the City Council and with prior approval by the City Attorney. PASSED, APPROVED AND ADOPTED by the Carlsbad City Council at a regular meeting held on the 7th dayof Ausust , 2001, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Nygaard and Hall. NOES: None. ABSTAIN: None. ABSENT: Council Member Finnila. ZC Resolution No. 2001-244 EXHIBIT 2 COOPERATION AGREEMENT A COOPERATION AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION FOR REIMBURSEMENT OF ADMINISTRATIVE COSTS AND PROVISION OF FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES This AGREEMENT is entered into as of the 20th day Of mcrust , 2001, by and between the CITY OF CARLSBAD, a municipal corporation, (the “City”) and the CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, a body corporate and politic, (the “Commission”). RECITALS A. The City Council of the City of Carlsbad, acting pursuant to the provisions of the California Community Redevelopment Law (California Heath and Safety Code 53300, et seq.), declared a need for a Community Development Commission, by Ordinance No. 1223, and activated the Commission, as the Housing and Redevelopment Commission, on October 16, 1979. B. The City Council of the City of Carlsbad previously declared itself to constitute the Commission for purposes of implementing redevelopment activities within the City of Carlsbad. C. The City of Carlsbad and the Carlsbad Housing and Redevelopment Commission previously entered into a cooperative agreement to set forth the relationships between the City and the Commission which was adopted on February 8, 1980 for the purposes of implementing redevelopment activities within the City of Carlsbad. Cooperation Agreement Page 1 6/28/01 G D. The Cooperative Agreement adopted on Februray 8, 1980, which is incorporated herein by this reference, sets forth the City-Commission relationship with respect to the implementation of redevelopment activities and shall by restatement within this Agreement apply to both the Village Redevelopment Project Area and the South Carlsbad Coastal Redevelopment Area, adopted in July, 1981 and July, 2000, respectively. E. Pursuant to and in accordance with the powers and authorization provided to public bodies in California Health and Safety Code 533000, the City and the Commission desire to continue their relationship as set forth in the previously approved Cooperative Agreement for the implementation of activities both within the Village Redevelopment Project Area and South Carlsbad Coastal Redevelopment Area whereby the City has agreed and will provide the Commission on an as-needed basis, with loan proceeds, staff and other administrative services and facilities, and make expenditures on behalf of the Commission. F. Pursuant to the Community Redevelopment Law and previously approved Cooperative Agreement, the Commission is performing a public function of the City and may have access to staff and other administrative services and facilities of the City, and may accept financial assistance from the City. G. The City and the Commission desire to enter into this Cooperative Agreement at this time for the following purposes: 1. To reaffirm the City and Commission’s cooperative agreement whereby the City will provide staff, services and facilities to the Commission in furtherance of the activities and functions of the Commission under the Community Cooperation Agreement Page 2 6/28/O 1 3 Redevelopment Law for both the existing Village Redevelopment Project Area and the newly adopted South Carlsbad Coastal Redevelopment Project Area. 2. To reaffirm that the Commission will reimburse the City for actions undertaken and all costs and expenses incurred by it for and on behalf of the Commission, and will repay loans advanced to the Commission, according to applicable Community Redevelopment Law, for both the existing Village Redevelopment Project Area and the newly adopted South Carlsbad Coastal Redevelopment Area, and subject to the terms of any subsequent loan agreements. 3. To establish Administrative Funds for the existing Village Redevelopment Project Area and newly adopted South Carlsbad Coastal Redevelopment Project Area, as appropriate, with funds appropriated by the City Council to the Commission as a loan to be repaid as funds are available to the Commission for such purpose, and to establish a Revolving Fund for the purposes of depositing any loan proceeds provided by the City to the Commission. These Funds are to be established by the City and held in the City Treasury. SECTION 1. PURPOSE OF CITY ASSISTANCE Upon the written request of the Commission’s Executive Director, and as authorized by the Commission, the City agrees to loan to the Commission an amount equal to those costs incurred by the Commission in connection with the preparation and implementation of redevelopment plans pursuant to the Community Redevelopment Law; which costs include, but shall not be limited to: the costs of surveys, planning, studies, and environmental assessments for the adoption of a redevelopment plan; the costs of acquisition of properties acquired, building and site preparation; public improvements; relocation assistance to displaced residential and nonresidential Cooperation Agreement Page 3 6/28/01 occupants as required by law; financial assistance provided to developers; and, other costs incurred by the Commission in increasing, improving and preserving the City’s supply of low and moderate income housing availability at affordable housing costs both inside and outside redevelopment project areas, in accordance with Health and Safety Code Section 33334.2 et seq. SECTION 2. FORM OF CITY ASSISTANCE The City’s assistance may take the form of: a) provision of services (through City employees, officers and/or special consultants), supplies, or facilities to the Commission, b) expenditure of City funds by the City on behalf of the Commission, and/or c) the loan of City funds to the Commission, or any combination thereof as determined and authorized by the City, and accepted by the Commission. In order to implement the loan of City funds to the Commission for services, facilities and other redevelopment purposes, the City will establish a community redevelopment agency Administrative Fund pursuant to California Health and Safety Code Sections 33610- 33615, and a redevelopment Revolving Fund pursuant to California Health and Safety Code Sections 33620-33626 in which such loan proceeds shall be deposited. The aggregate amount of such City assistance, (including the provision of services, the cost of which shall be determined by the City) will be paid to the Commission as requested by the Executive Director and shall be repaid to the City as further described in Section 4 of this Agreement. SECTION 3. INDEBTEDNESS CREATED The obligations of the Commission under this Agreement, whether to repay funds advanced or to reimburse the City for services rendered or expenditures made on the Commission’s behalf, shall constitute an indebtedness of the Commission Cooperation Agreement Page 4 6/28/O 1 within the meaning of California Health and Safety Code $33000, et seq. for the South Carlsbad Coastal Redevelopment Project Area. The debt of the South Carlsbad Coastal Redevelopment Project Area will be due and payable by the Commission in accordance with the terms of this Agreement. The debt of the Village Redevelopment Project Area will be repaid according to a separate loan agreement, or agreements, to be approved separately. SECTION 4. REPAYMENT OF DEBT The Commission agrees to repay the City for all assistance rendered hereunder. On the basis of procedures to be established by the City Manager, the City shall compute the costs of the services and facilities provided hereunder, the amount of funds expended on the Commission’s behalf and/or advanced to the Commission for services and facilities provided. Such costs and expended funds shall include a proration of the City’s administrative and salary expense attributable to the rendition of services by City officials, employees and departments on behalf of the Commission, provided, however, that no City officer or employee shall be paid extra compensation for any work performed for the Commission unless such compensation is expressly authorized and provided by the City Council. SECTION 5. TERMS OF REPAYMENT The Commission agrees to repay the City together with accrued interest calculated at a variable rate based upon the annual average rate of return earned on the City’s investment portfolio as determined by the City’s Treasurer, compounded annually, and to the extent that the Commission has funds available pursuant to California Health and Safety Code Section 33670 or from other sources, which are not otherwise needed to carry out the Commission’s redevelopment projects. Interest shall . Cooperation Agreement Page 5 6/28/01 be calculated annually by the City for the Commission. The parties agree, however, that the indebtedness of the Commission to the City created by this Agreement is subordinate to any pledge of tax increments made in connection with the issuance and sale of bonds which are or may be issued by the Commission or another public entity under contract with the Commission. SECTION 6. INCLUSION IN INSURANCE POLICY The City agrees to include the Commission within the terms of the City’s insurance policy at a rate similar to charges made to other departments/districts of the City. SECTION 7. REMEDIES If either party defaults with regard to any of the provisions of this Agreement, the nondefaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured by the defaulting party within ninety (90) days after service of notice of default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a reasonable period of time after commencement, the defaulting party shall be liable to the other party for damages caused by such default. SECTION 8. PRIOR AGREEMENTS This Agreement constitutes the entire Agreement between the parties pertaining to the subject matter contained herein, and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. SECTION 9. SEVERABILITY The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Cooperation Agreement Page 6 6128101 Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. APPROVED AS TO FORM: /f’;&{,;t;~- i;~r~h$$-/f ;;, ,.f,:c RONALD R. BALL -’ / B “City Attorney Mayor APPROVED AS TO FORM: ,r ; _C. “>- City Clerk / ,’ !.L-/ , ,; i *Ii &;; _ / i z. CARLSBAD HOUSING AND Attorney to the Commission _I REDEVELOPMEMT COMMISSION Y - Exe&tive Director/Secretary Cooperation Agreement Page 7 6/28/01 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9 EXHIBIT “A” @ RESOLUTION NO. 2 A RESOLUTION OF THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AGREEMENT ESTABLISHING CITY-COMMISSION RELATIONSHIPS. WHEREAS, the Carlsbad Housing and Redevelopment Commission desires to establish certain relationships with the City of Carlsbad; NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Housing and Redevelopment Commission, as follows: 1. That the above recitations are true and correct. 2. That the Agreement entitled Agreement Between the City of Carlsbad and the Carlsbad‘Housing and Redevelopment Commission Establishing Certain City-Commission Relationships, is hereby approved and the Executive Director of said Commission is authorized to sign said Agreement for the Commission. PASSED, APPROVED AND ADOPTED by the Carlsbad Housing and Redevelopment Commission at a Regular Meeting thereof, held on the 5th day of February, 1980, by the following vote, to wit: AYES: Commissioners Packard, Skotnicki, Anear, Lewl;s;:g NOES: None ABSENT: None ATTEST: Secretary (Seal) \ / \ AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION ESTABLISHING CERTAIN CITY-COMMISSION RELATIONSHIPS THIS AGREEMENT is made this 8th Day of February, 1980, by and between the CITY OF CARLSBAD, CALIFORNIA, (hereinafter referred to as "City") and the CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION (hereinafter referred to as the "Commission"). WITNES‘SETH: NOW, THEREFORE, it is agreed between the parties hereto as follows: I. GENERAL A. B. C. D. Ordinance: Pursuant to the California Health and Safety Code Section 34100 ‘et seq., the Carlsbad City Council, on October 16, 1979, by Ordinance No. 1223, declared that there was a need for a Community Development Commission to function in the City. Appointment of Members: The City Council by Ordinance No. 1223 declared itself to be the Commission and such Council members are serving as Commission members. Separate Commission: The Commission is and shall remain as a separate public body, corporation and politic,, exercising governmental functions and performing a public function of the City. City-Manager--Executive Director of the Commission: The City Manager has been appointed as the Executive Director of the Commission. As a portion of his duties and functions, he shall have ultimate day-to-day administra- tive responsibility to carry out Commission programs and affairs. II. E. Officers, Employees, Agents, Consultants, and Contractors: The officers of the Commission shall be City officials as established in the By-Laws of the Commission. The City Manager, with the approval of the Commission members, may select, appoint, employ, and contract for such permanent and temporary consultants, contractors, agents, and employees as it requires, and determine their qualifications, duties, benefits and compensation, subject to the other provisions of this agreement and the law. CITY SERVICES A. Services to be Provided: The City, its officers and employees, shall perform services for the Commission in carrying out its work in redevelopment and housing. The Commission shall also have access to the facilities of the department and offices of the City. Those City officers and employees who are also appointed to positions or offices with or related to the Commission shall perform services for the Commission in a dual capacity. The City Manager shall perform services in his capacity as City Manager and also as the Executive Director of the Commission. The City Manager and other appropriate City officials and the Commission shall determine and establish procedures to be followed in the request for, and the rendering of, such services. B. Compensation by the Commission for Services Rendered: The Commission shall reimburse the City for all costs incurred by City officers and employees in rendering services to the Commission and shall be responsible -2- - ,,/’ - / . for retirement of all debts incurred by the Carlsbad Redevelopment Agency pursuant to Agency Resolution No. 2. The Commission shall reimburse the City for all such services performed on an hourly basis at rates including overhead established by the City Manager. No City officer or employee shall be paid extra compensation for any work performed for the Commission unless such compensation is expressly authorized and provided for by the City Council. C. Method of Payment: Costs under this agreement shall commence on the date that the services were or are begun, and shall accrue on the basis established by the City Manager for the services being performed. The Commission, however, shall not be responsible for the payment of accrued costs for services until funds are available to the Commission for this purpose. Commission revenues may come from many sources, many of which may be available to the Commission only for limited or special purposes. It is exepcted that any funds which may become available to the Commission for the reimburse- ment of costs for senTices rendered by the City will be used to pay the accrued costs. The Commission shall reimburse the City for such costs only if funds become available. Once funds become available from which the Commission may pay costs for services, then all costs theretofore accrued shall be paid in a time and manner consistent with the needs of the Commission. -3- III. OFFICES IV. V. The principal office .of the Commission shall be located in the The City Hall of the City of Carlsbad. The City agrees to lease to the Commission necessary and ample space for business offices and meeting rooms of the Commission. Said space shall also include use of the City Council Chambers for meetings of the Commission. Leases for such purposes shall be entered into from time-to-time as separate space is needed by the Commission. Said space shall be used in accordance with the rules and regulations of the City as applicable to other-buildings and offices of the City. Commission revenues may come from many sources, most of which are available to the Commission only for limited and special purposes. Any funds which may become available to the Commission for the payment of rent shall pay the rent only if funds become available for-such purposes. BY-LAWS AND REGULATIONS The Commission members have adopted and will adopt By-Laws and other regulations to carry into effect the powers, purposes and functions of the Commission and to establish policies of the Commission members for the guidance of the City Manager serving as Executive Director. The Commission shall supply such information and reports to the City as may be required. CITY RESPONSIBILITIES A. City Aid and Assistance: The City will aid and cooperate in the planning, undertaking, construction or operation B. of redevelopment and housing projects within the City as permitted by applicable statute. Administrative Fund: The City will. establish such funds as necessary and appropriate with money appropriated by the City Council to'the Commission as a loan to be repaid upon such terms and conditions as the, City Council may provide. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day- and year first above written. . PACKARD, Mayor CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION z&m FRANK D. ALESHIRE, Executive Director ATTEST: -5- 1%