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01/30/2012-SPCITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, COUNCIL MEETING & HOUSING AUTHORITY SPECIAL MEETING AGENDA CITY COUNCIL CHAMBERS January 30, 2012 GRAND TERRACE CIVIC CENTER 6:00 p.m. 22795 Barton Road THE CITY OF GRAND TERRACE COMPLIES WITH THE AMERICANS WITH DISABILITIES ACT OF 1990. IF YOU REQUIRE SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CALL THE CITY CLERK=S OFFICE AT (909) 824-6621 AT LEAST 48 HOURS PRIOR TO THE MEETING. IF YOU DESIRE TO ADDRESS THE CITY COUNCIL DURING THE MEETING WITH REGARD TO ITEMS ON THE AGENDA, PLEASE COMPLETE A REQUEST TO SPEAK FORM AVAILABLE AT THE ENTRANCE AND PRESENT IT TO THE CITY CLERK. SPEAKERS WILL BE CALLED UPON BY THE MAYOR AT THE APPROPRIATE TIME. ANY DOCUMENTS PROVIDED TO A MAJORITY OF THE CITY COUNCIL REGARDING ANY ITEM ON THIS AGENDA WILL BE MADE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK=S OFFICE AT CITY HALL LOCATED AT 22795 BARTON ROAD DURING NORMAL BUSINESS HOURS. IN ADDITION, SUCH DOCUMENTS WILL BE POSTED ON THE CITY=S WEBSITE AT WWW.CITYOFGRANDTERRACE.ORG * Call to Order – * Invocation – * Pledge of Allegiance – * Roll Call – AGENDA ITEMS STAFF RECOMMENDATION COUNCIL ACTION CONVENE CITY COUNCIL 1. Establishment of a Housing Authority and Transfer of Housing Functions and Assets to the Housing Authority 2. 2. Approval of the Amended and Restated Joint Exercise of Powers Agreement for the Public Financing Authority Agreement Amendment 3. Post AB X1-26 RDA Dissolution Action to Transfer Funds from Grand Terrace Redevelopment Agency with Local Agency Investment Fund to the City of Grand Terrace as Successor Agency 4. Establish Separate Account at Bank of America for Successor Agency Unexpended Proceeds of 2011 Tax Allocation Bonds 5. Closed Session A. Conference with Legal Counsel – Potential Litigation Pursuant to Government Code 54956.9(c) – One Case B. Employee Negotiations Labor Negotiations per Government Code 54957.6 City Labor Negotiator – Betsy M. Adams, City Manager Negotiated With – All Unrepresented Employees CONVENE HOUSING AUTHORITY Adopt Adopt Approve Adopt SPECIAL MEETING AGENDA 01-30-2012 PAGE 2 OF 2 AGENDA ITEMS STAFF RECOMMENDATIONS COUNCIL ACTION 1. Adoption of a Resolution Electing to Become the Successor Housing Agency to the Grand Terrace Redevelopment Agency 2. Approval of the Amended and Restated Joint Exercise of Powers Agreement for the Public Financing Authority CONVENE COMMUNITY REDEVELOPMENT AGENCY 1. 1. Post AB X1-26 RDA Dissolution Required Action to Adopt Revised Enforceable Obligation Payment Schedule and Revised Draft Recognized Obligation Payment Schedule 2. 2. Post AB X1-26 RDA Dissolution Action to Transfer Funds from Grand Terrace Redevelopment Agency with Local Agency Investment Fund to the City of Grand Terrace as Successor Agency 3. Transfer of Ownership of Parcels Owned by the Agency’s Low to Moderate Income Housing Fund 4. Approval of 01-24-2012 Minutes ADJOURN THE NEXT REGULAR CRA/CITY COUNCIL MEETING WILL BE HELD ON TUESDAY, FEBRUARY 14, 2012 AT 6:00 P.M. AGENDA ITEM REQUESTS MUST BE SUBMITTED IN WRITING TO THE CITY CLERK=S OFFICE NO LATER THAN 14 CALENDAR DAYS PRECEDING THE MEETING. Adopt Adopt Adopt Approve Approve/Authorize Approve AGENDA REPORT MEETING DATE: January 30, 2012 Council Item ( X ) TITLE: Establishment of a Housing Authority and transfer of Housing Functions and Assets to the Housing Authority PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: 1. Adopt a Resolution creating a Housing Authority. 2. Adopt a Resolution transferring the housing functions and assets of the Agency, by the City acting as the Agency’s successor, to the Housing Authority. BACKGROUND: Pursuant to ABX1 26 dissolving redevelopment agencies throughout the State, on January 10, 2012, the City Council adopted a resolution to be the successor agency to the Community Redevelopment Agency. The City also agreed to assume the housing functions of the dissolving Agency. On January 24, 2012, the Council approved actions transferring title to the Agency’s real property to the City, as the successor agency , with exception to those properties acquired with the Low to Moderate Income Housing Fund (LMIHF). DISCUSSION: Creation of the Housing Authority is necessary because unsanitary or unsafe housing still exists within the City, particularly in light of the recent economic downturn, high unemployment rate and increasing rate of property foreclosures. In addition, there is a shortage of safe and sanitary accommodations within the City affordable to persons of low income. The Council is required to make these findings to create a Housing Authority. The pending Senate Bill 654, if passed, would allow any amounts on deposit in the Low to Moderate Income Housing Fund to be transferred to specified entities, including a City Housing Authority. The City Attorney has recommended that the City, as the COUNCIL AGENDA ITEM NO. 1 Approvals Finance Director (if applicable) BS City Attorney KHB City Manager bma Redevelopment Agency’s successor, activate a Housing Authority to hold the assets, liabilities and responsibilities of the dissolving Agency’s Low to Moderate Income Housing Fund and other housing functions. In addition, the Housing Authority would be prepared to accept any distribution of funds specified for affordable housing purposes. A Resolution of the City Council activating the Grand Terrace Housing Authority pursuant to Health and Safety Code Section 34200, et seq. has been prepared by the City Attorney and is attached as Attachment No. 1. This Resolution includes the required findings. A second Resolution, Attachment No. 2, authorizes the transfer of all rights, powers, assets, liabilities, duties, obligations and functions associated with housing activities to the City’s Housing Authority pursuant to Health and Safety code Section 34176. The transfer would occur on February 1, 2012. FISCAL IMPACT: At this time, the responsibilities of the Housing Authority will be funded by the City’s General Fund. Assets transferred to the Housing Authority may be available for carrying out housing projects. However, if SB 654 is passed by the State Legislature, funding for the Housing Authority could also potentially come from the property tax revenue set aside for low-to-moderate income housing. Respectfully submitted: /s/ Joyce Powers Joyce Powers, Community and Economic Development Director ATTACHMENTS: 1. Resolution creating a Housing Authority 2. Resolution transferring the assets of the City, acting as the Agency’s successor, to the Housing Authority Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, GRAND TERRACE, CALIFORNIA TO ADOPT AND CREATE THE GRAND TERRACE HOUSING AUTHORITY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176. WHEREAS, the Grand Terrace Redevelopment Agency (“Agency”) is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.) (“CRL”); and WHEREAS, the City of Grand Terrace is a municipal corporation and a general law city under the California Government Code (“City”); and WHEREAS, on December 29, 2011, in California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld ABX1 26, which dissolves all of the redevelopment agencies in California, and struck down ABX1 27, which allowed redevelopment agencies to remain in existence if City opted in to the “Voluntary Alternative Redevelopment Program” (“VARP”); and WHEREAS, SB 654, if passed, would allow any amounts on deposit in the Low and Moderate Income Housing Fund of the Grand Terrace Redevelopment Agency be transferred to specified entities; and WHEREAS, on or about January 10, 2012, the City opted to serve as the Successor to the Agency; and WHEREAS, on or about January 24, 2012, the City adopted a resolution assuming all rights, powers, assets, liabilities, duties, obligations and functions associated with the housing activities of the Agency; and WHEREAS, the City Council finds that insanitary or unsafe inhabited dwelling accommodations exist in the City of Grand Terrace; and WHEREAS, there is a shortage of safe or sanitary dwelling accommodations in the City of Grand Terrace available to persons of low income at rental rates they can afford; and WHEREAS, the City Council declares there is a need for a housing authority in the City of Grand Terrace to address these issues and wishes to activate a Housing Authority pursuant to California Health and Safety Code sections 34200, et. seq., (art 2, Chapter 1 of the Health and Safety Code); and WHEREAS, the Grand Terrace Housing Authority may purchase, lease, accept dedication of, finance, or accept assignment of real or personal property and develop and manage the real and personal property to carry out all the powers which a housing authority may undertake as set out in California Health and Safety Code section 34312. NOW THEREFORE, THE GRAND TERRACE CITY COUNCIL DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The City hereby activates a Housing Authority pursuant to California Health and Safety Code sections 34200, et. seq., which shall be known as the Grand Terrace Housing Authority. SECTION 2. The City Council declares that the Commissioners of the Housing Authority shall be the five members of the City Council, and the terms of office of the Commissioners shall coincide with the terms of office of the City Council members. The Mayor shall serve as Chairman of the Authority and the Mayor Pro Tem shall serve as Vice Chairman. SECTION 3. The City Manager of the City shall serve as the Executive Director and Secretary of the Authority. SECTION 4. The Housing Authority shall hold its regular meetings on the second and fourth Tuesday of each month at 6:00 p.m. or at such other times as may be set by resolution of the Housing Authority Commission Board. SECTION 5. The City Manager and is hereby authorized and directed to take such other and further actions, and sign such other and further documents, as are necessary and proper in order to implement this Resolution on behalf of the City. SECTION 6. The City Clerk shall transmit a copy of this resolution to the State Controller’s Office within 10 days of the adoption of its adoption. SECTION 7. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a special meeting held on the 30th of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Mayor ATTEST: Tracey R. Martinez, City Clerk APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, City Clerk RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, GRAND TERRACE, CALIFORNIA TRANSFERRING THE HOUSING FUNCTIONS ASSUMED AND ASSETS RECEIVED BY THE CITY FROM THE GRAND TERRACE REDEVELOPMENT AGENCY TO THE GRAND TERRACE HOUSING AUTHORITY WHEREAS, the Grand Terrace Redevelopment Agency (“Agency”) is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.) (“CRL”); WHEREAS, the City of Grand Terrace is a municipal corporation and a general law city under the California Government Code (“City”); WHEREAS, on December 29, 2011, in California Redevelopment Association v. Matosantos, the California Supreme Court upheld ABX1 26, which dissolves all of the redevelopment agencies in California, and struck down ABX1 27, which allowed redevelopment agencies to remain in existence if City opted in to the “Voluntary Alternative Redevelopment Program” (“VARP”); WHEREAS, on or about January 9th 2012, the City opted to serve as Successor Agency to the Grand Terrace Redevelopment Agency; WHEREAS, on or about January 9th, 2012, the City adopted a resolution assuming all rights, powers, assets, liabilities, duties, obligations and functions associated with the housing activities of the Agency pursuant to Health and Safety Code Section 34176; WHEREAS, the Agency will dissolve on or about February 1, 2012 at which point the housing assets of the Agency will transfer to the City as Successor Agency; WHEREAS, the City has now created its own Housing Authority to assume all rights, powers, assets, liabilities, duties obligations and functions associated with the housing activities of the City of Grand Terrace pursuant to Health and Safety Code Section 34176; and WHEREAS, the City as Successor Agency upon receipt of the housing assets of the dissolved Agency, must then transfer the housing assets to the Grand Terrace Housing Authority. NOW THEREFORE, THE GRAND TERRACE CITY COUNCIL DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The City as Successor Agency is hereby authorized to take all actions necessary to transfer all rights, powers, assets, liabilities, duties, obligations and functions associated with housing activities received by the City, as Successor Agency, to the Grand Terrace Housing Authority. SECTION 2. If Senate Bill 654 is approved by the California Legislature, any amounts on deposit in the Low and Moderate Income Housing Fund shall be transferred to the Grand Terrace Housing Authority. SECTION 3. This Resolution shall be effective on February 1, 2012. SECTION 4. The City Clerk shall transmit a copy of this resolution to the State Controller’s Office within 10 days of its adoption. SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a special meeting held on the 30th of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Mayor ATTEST: Tracey R. Martinez, City Clerk APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council held on the 30th day of January, 2012. Tracey R. Martinez, City Clerk AGENDA REPORT MEETING DATE: January 30, 2012 Housing Authority Item ( X ) TITLE: Approval of the Amended and Restated Exercise of Joint Powers Agreement for the Public Financing Authority to include the Grand Terrace Housing Authority PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Adopt a Resolution Approving the Amended and Restated Joint Exercise of Powers Agreement for the Grand Terrace Public Financing Authority to include the Grand Terrace Housing Authority as a Party. BACKGROUND: Since 1990, The City and Redevelopment Agency have been parties to a joint powers authority agreement for purpose of issuing tax allocation bonds, the Public Financing Authority. When the Agency dissolves on January 31, 2012, the Agency may no longer be a party to the Public Financing Authority. DISCUSSION: Staff and the City Attorney recommend that the newly created Housing Authority become the second party to the PFA Agreement with the City. Attachment 1 is a Housing Authority Resolution approving the Amended and Restated Joint Exercise of Powers Agreement to include the Grand Terrace Housing Authority as a party. Exhibit “A” to the Resolution is the amendment Agreement. FISCAL IMPACT: This action allows the Public Financing Authority to continue in existence and allows the Housing Authority to participate in public financing to accomplish its goals. There is no fiscal impact attributed to the recommended actions other than staff and legal counsel time. COUNCIL AGENDA ITEM NO. 2 Approvals Finance Director (if applicable) BS City Attorney KHB City Manager bma Respectfully submitted: Joyce Powers, Community and Economic Development Director ATTACHMENTS: 1. Resolution amending the Public Financing Authority Agreement to add the Housing Authority Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE CITY OF GRAND TERRACE APPROVING THE AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT FOR THE GRAND TERRACE PUBLIC FINANCING AUTHORITY TO INCLUDE GRAND TERRACE HOUSING AUTHORITY AS A PARTY WHEREAS, the Grand Terrace Redevelopment Agency, Grand Terrace, California (“Agency”) was formed for the purpose of revitalizing areas within the City of Grand Terrace (“City”) pursuant to Health and Safety Code Section 33000, et. seq.; WHEREAS, In California Redevelopment Association v. Matosantos, (“Matosantos”) the California Supreme Court upheld AB X1 26 allowing for the dissolution of city redevelopment agencies and overturning AB X1 27 thus precludi ng redevelopment agencies continued existence as a VARP; WHEREAS, a Public Financing Authority Joint Powers Agreement was entered between the City of Grand Terrace and the Agency; WHEREAS, on or about January 9th, 2012, the City opted to serve as Successor Agency to the Agency; WHEREAS, on or about January 30th, 2012, the City activated the Grand Terrace Housing Authority as provided under Health and Safety Code Section 34240 et. seq. in order to continue the housing functions of the Agency; WHEREAS, under Matosantos, the dissolution of the Agency may result in a dissolution or winding up of the Grand Terrace Public Financing Authority; and WHEREAS, the City wishes to maintain the Grand Terrace Public Financing Authority upon dissolution of the Agency and to add the Grand Terrace Housing Authority as a Member in order to facilitate the Housing Authority carrying out its housing functions. NOW THEREFORE, THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The City hereby amends the Public Financing Authority Joint Powers Agreement between the City of Grand Terrace and the Grand Terrace Redevelopment Agency to include the Grand Terrace Housing Authority as a party to the Agreement. SECTION 2. The Grand Terrace Housing Authority hereby approves and ratifies the Amended and Restated Joint Exercise of Powers Authority of the Grand Terrace Public Financing Authority attached hereto as Exhibit A. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. PASSED APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a special meeting held on the 30th of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Mayor ATTEST: Tracey R. Martinez, City Clerk APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, City Clerk 1 AMENDED AND RESTATED JOINT EXERCISE POWERS AGREEMENT GRAND TERRACE PUBLIC FINANCING AUTHORITY THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT, dated January 30, 2012, is by and between the City of Grand Terrace (the "City"), the Grand Terrace Housing Authority, and the Redevelopment Agency of the City of Grand Terrace (the "Agency"). Each duly organized and existing under the laws of the State of California. W I T N E S E T H; WHEREAS, the City and the Agency were initially parties to the Joint Exercise of Powers Agreement dated December 13 1990; and WHEREAS, the City activated the Grand Terrace Housing Authority (“Housing Authority”) by adoption of Resolution No. ___ on January 30, 2012; and WHEREAS, the City, the Agency and the Housing Authority are each authorized to own, lease, purchase, receive and hold property necessary or convenient for their governmental operations; and WHEREAS, the financing of the acquisition of property by the City, the Agency, and/or the Housing Authority, acting separately may result in duplication of effort, inefficiencies in administration, and excessive cost, all of which, in the judgment of the City, the Agency and the Authority could be eliminated if the financing of the acquisition of property was capable of being performed through a single public agency, and such is the purpose of this Agreement; and WHEREAS, the Housing Authority wishes to join the Public Financing Authority as a Member; and WHEREAS, the Marks-Roos Local Bond Pooling Act of 1985 authorized agencies formed under the Joint Exercise of Powers Law (hereinafter defined as the "Act") to assist in the financing of public capital improvements to be owned by any of its members or any other city, county, city and county, authority, district or public corporation of the State of California; NOW, THEREFORE, in consideration of the above promises and of the mutual promises herein contained, the City, the Agency and the Housing Authority do hereby agree as follows: 2 ARTICLE I DEFINITIONS Section 1.01. Definitions. Unless the context otherwise requires, the words and terms defined in this Article I shall, for the purpose herein, have the meanings herein specified. "Act" means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code. "Agreement" means this Agreement. "Authority" means the Grand Terrace Public Financing Authority established pursuant to the original Agreement. "Bond Law" means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Act (commencing with Section 6584), as now in effect or hereafter amended, Article 2 of the Act as now in effect or hereafter amended, or any other law available for use by the Authority in the authorization and issuance of bonds to provide for the financing of Obligations and/or Public Capital Improvements. "Bond Purchase Agreement" means an agreement between the Authority and the City, the Housing Authority, or the Agency, pursuant to which the Authority agrees to purchase Obligations from the City, the Housing Authority, or the Agency as the case may be. "Board" means the Board of Directors referred to in Section 2.03, which shall be the governing body of the Authority. "Bonds" means bonds of the Authority issued pursuant of the bond law. "Directors" means the representatives of the City appointed to the Board pursuant to Section 2.03. "Fiscal Year" means the period from July 1st to and including the following June 30th. "Local Agency" means a Member, or an agency or subdivision of that Member, sponsoring a project of Public Capital Improvements, or any city, county, city and county authority, district or public corporation of the State of California. "Members" means the City, the Housing Authority, and the Agency. 3 "Obligations" has the meaning given to the term "Bonds" in Section 6585 (c) of the Bond Law. "Public Capital Improvement" has the meaning given to such term in Section 6585 (g) of the Act, as in effect on the date hereof, and as hereafter amended. "Secretary" means the Secretary of the Authority appointed pursuant to Section 3.01. "Treasurer" means the Treasurer of the Authority appointed pursuant to Section 3.02. ARTICLE II GENERAL PROVISIONS Section 2.01. Purpose. This Agreement is made pursuant to the Act providing for the joint exercise of powers common to the City, the Housing Authority, and the Agency, and for other purposes as permitted under the Act, the Bond Law and as agreed by one or more of the parties hereto. The purpose of this Agreement is to provide for the financing of the Public Capital Improvements for, and working capital, liability and other insurance requirements of, a Local Agency through the acquisition by the Authority of such Public Capital Improvements and the leasing thereof to a Local Agency pursuant to Bond Purchase Agreements and/or the lending of funds by the Authority to a Local Agency. Section 2.02. Creation of Authority. Pursuant to the Act, there is hereby created a public entity to be known as the "Grand Terrace Public Financing Authority." The Authoity shall be a public entity separate and apart from the Members, and shall administer the Agreement. Section 2.03. Board of Directors. The Authority shall be administered by a Board of five (5) Directors, unless and until changed by amendment of this Agreement. The members of the City Council of the City, as such members may change from time to time, shall constitute the Directors of the Authority. The Board shall be called the "Board of Directors of the Grand Terrace Public Financing Authority". All voting power of the authority shall reside in the Board. Section 2.04. Meetings of the Board. (a) Regular Meetings. The Board shall provide for its regular meeting; provided, however, that at least one regular meeting shall be held each year. The regular meetings have been fixed by resolution of the Board to be held at 6:00 pm on the second City Council meeting date of May, and a copy of such resolution has been filed with each of the Members. 4 (b) Special Meetings. Special meetings of the Board may be called in accordance with the provisions of section 54956 of the California Government Code. (c) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (Section 54950 et seq. of the California Government Code). Section 2.05. Minutes. The Secretary shall cause to be kept minutes of the meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each director and to the members. Section 2.06 Voting. Each Director shall have one vote. Section 2.07. Quorum; Required Votes; Approvals. Directors holding a majority of the votes shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time. The affirmative votes of at least a majority of the Directors present at any meeting at which a quorum is present shall be required to take any action by the Board. Section 2.08. Bylaws. The Board may adopt, from time to time, such bylaws, rules and regulations for the conduct of its meetings as are necessary for the purpose hereof. ARTICLE III OFFICERS AND EMPLOYEES Section 3.01. Chairman, Vice-Chairman and Secretary. Chairman of the Board shall be the Mayor of the City, Vice-Chairman shall be the Mayor Pro Tem of the City, and shall appoint as Secretary the City Clerk of the City. The officers shall perform the duties normal to said offices. The Chairman shall sign contracts on behalf of the Authority, and shall perform such other duties as may be imposed by the Board. The Vice-Chairman shall act, sign contracts, and perform all of the Chairman's duties in the absence of the Chairman. The Secretary shall countersign all contracts signed by the Chairman or Vice-Chairman on behalf of the Authority, perform such other duties as may be imposed by the Board and cause a copy of this Agreement to be filed with the Secretary of State of the State of California pursuant to the Act. Section 3.02. Executive Director. The City Manager of the City is hereby designated as Executive Director of the Authority who shall act as the supervisor of staff members of the Authority. Section 3.03. Treasurer. Pursuant to Section 6505.6 of the Act, the Finance Director of the City is hereby designated as the Treasurer of the Authority. The 5 Treasurer shall be the depository, shall have the duties and obligation set forth in Section 6505 and 6505.5 of the Act and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. Section 3.04. Officers in Charge of Records, Funds and Accounts. Pursuant to Section 6505.1 of the Act, the Treasurer shall have charge of, handle and have access to all accounts, funds and money for the Authority and all records of the Authority relating thereto; and the Secretary shall have charge of, handle and have access to all other records of the Authority. Section 3.05. Bonding Persons Having Access to Public Capital Improvements. From time to time, the Board may designate persons, in addition to the Secretary and the Treasurer, having charge of, handling or having access to any records, funds or accounts of any public Capital Improvement of the Authority, and the respective among of the official bonds of the Secretary and the Treasurer and such other persons pursuant to Section 6505.1 of the Act. Section 3.06. Other Employees. The Board shall have the power to appoint and employ such other employees, consultants and, independent contractors as may be necessary for the purposes of this Agreement. All other privileges and immunities from liability, exemption from laws, ordinance, and rules, all pension, relief, disability, workers' compensation, and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them the same degree and extent while engaged in the performance of the functions and other duties under this Agreement. None of the Officers, Agents, or employees directly employed by the Board shall be deemed, by reason of their employment by the Board to be employed by the City, the Housing Authority, or the Agency or, by reason of their employment by the Board, to be subject to any of the requirements of the City, the Housing Authority, and/or Agency. Section 3.07. Assistant Officers. The Board may appoint such assistant to act in the place of the Secretary or other such assistant to act in the place of the Secretary or other officers of the Authority (other than any Director), and may by resolution provide for the appointment of additional officers of the authority who may or may not be Directors, as the Board shall from time to time deem appropriate. ARTICLE IV POWERS Section 4.01. General Powers. The Authority shall exercise, in the manner herein provided, the powers common to each of the Members, or as otherwise 6 permitted under the Act, and necessary to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 4.04. As provided in the Act, the Authority shall be a public entity separate from the Members. The Authority shall have the power to acquire and to finance the acquisition of Public Capital Improvements necessary or convenient for the operation of a Local Agency, and to acquire Obligations of a Local Agency. Section 4.02. Power to Issue Revenue Bonds The Authority shall have all of the powers provided in the Act, including, but not limited to, Article 4 of the Act (commencing with Section 6584, and including the power to issue Bonds thereunder. Section 4.03. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including, but not limited to, any or all of the following: (a) to make and enter into contract; (b) to employ agents or employees; (c) to acquire, construct, manage, maintain or operate any Public Capital Improvement, including the common powers of the Members, to acquire any Public Capital Improvement by the power of eminent domain; (d) to sue and be sued in its own name; (e) to issue Bonds and otherwise to incur debts, liabilities, or obligations, provided that no such bond, debt, liability, or obligation shall constitute a debt, liability, or obligation of the Members; (f) to apply for, accept, receive, and disburse grants, loans, and other aids from any agency of the United States of America or of the State of California; (g) to invest any money in the treasury pursuant to Section 6505.5 of the Act that is not required for the immediate necessities of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code; (h) To apply for letters of credit or other form of financial guarantees in order to secure the repayment of Bonds and enter into agreements in connection therewith; (i) to carry out and enforce all the provisions of this Agreement; ( i ) 7 (j) to make and enter into Bond Purchase Agreements; (k) to purchase Obligations of any Local Agency; and (l) to exercise any and all other powers as may be provided in the Act or in the Bond Law. Section 4.04. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Act and in the Bond Law, and, except for those powers set forth in the Bond Law, shall be subject (in accordance with Section 6509 of the Act) to the restrictions upon the manner of exercising such powers that are imposed upon the City in the exercise of similar powers. Section 4.05. Obligations of Authority. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of the Members. ARTICLE V METHODS OF PROCEDURE; CREDIT TO MEMBERS Section 5.01. Assumption of Responsibilities by the Authority. As soon as practical after the date of execution of this Amended and Restated Agreement, the Directors shall give notice (in the manner required by Section 2.04) of the re- organizational meeting of the Board. At said meeting, the Board shall provide for its regular meetings as required by Section 2.03 and elect a Chairman and Vice-Chairman, and appoint the Secretary. Section 5.02. Delegation of Powers. The Members hereby delegate to the Authority the power and duty to acquire, by lease, lease-purchase, installment sale agreements, or otherwise, or make loans to finance, such Public Capital Improvements as may be necessary or convenient for the operation of the Local Agency. Section 5.03. Credit to Members. All accounts or funds created and established pursuant to any instrument or agreement to which the Authority is a party, and any interest earned or accrued thereon, shall inure to the benefit of the Members in the respective proportions for which such funds or accounts were created. ARTICLE VI CONTRIBUTION; ACCOUNTS AND REPORT; FUNDS Section 6.01. Contributions. The Members may, in the appropriate circumstance, when required hereunder: (a) make contributions from their treasuries for the purposes set forth herein,(b) make payments of public funds to defray the cost of such purchases,(c) make advances of public funds for such purposes, such advances to be repaid as provided herein, or (d) use its personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Act are hereby incorporated into this Agreement. 8 Section 6.02. Accounts and Reports. To the extent not covered by the duties assigned to a trustee chosen by the Authority, the Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provisions of any trust indenture or trust agreement entered into with respect to the proceeds of any Bonds issued by the Authority. The books and records of the Authority in the hands of a trustee or the Treasurer shall be open to inspection at all reasonable times by representatives of the Members. The Treasurer within 120 days after the close of each Fiscal Year, shall give a complete written report of all financial activities for such fiscal year to the Members to the extent such activities are not covered by the report of such trustee. The trustee appointed under any trust indenture or trust agreement shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to carry out the provisions of said trust indenture or trust agreement. Said Trustee may be given such duties in said trust indenture or trust agreement as may be desirable to carry out this Agreement. Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of, and disburse Authority funds as nearly as practicable in accordance with generally accepted accounting practices, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement. Section 6.04. Annual Budget and Administrative Expenses. The Board shall adopt a budget for administrative expenses, which shall include all expenses not included in any financing issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally. ARTICLE VII TERM Section 7.01. Term. This Agreement shall become effective as of the date hereof and shall continue in full force and effect so long as any Bonds remaining outstanding, so long as the Authority shall own any interest in Public Capital Improvements, or so long as the Members wish to keep the Agreement in place. Section 7.02. Disposition of Assets. Upon termination of this Agreement, all property of the Authority, both real and personal, shall be divided among the parties hereto in such manner as shall be agreed upon by the parties. 9 Section 7.03. Withdrawal of Member. Should any Member withdraw, the Agreement will remain in full force and effect, and the Authority will continue to own any and all real or personal property held in its name, notwithstanding the withdrawal of any Member. No disposition of assets shall be made as provided in Section 7.02 above unless the Agreement is terminated. ARTICLE VIII MISCELLANEOUS PROVISIONS Section 8.01. Notices. Notices hereunder shall be in writing and shall be sufficient if delivered to the notice address of each party hereto for legal notices or as otherwise provided by a party hereto in writing to each of the other parties hereto. Section 8.02. Section Headings. All section headings in this are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provisions of this Agreement. Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. Section 8.04. Law Governing. 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 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Bonds issued by Authority or certificates of participation in payments to be made by the Authority or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all of the parties to this Agreement either or as required in order to carry out any of the provisions of this Agreement or for any other purpose, including without limiting addition of new parties (including any legal entities or taxing areas heretofore or hereafter created) in pursuance of the purposes of this Agreement. Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement. 10 Section 8.07. Severability Should any part, term, or provision of this Agreement be decided by any court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. Section 8.08. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of binding upon and shall inure to the benefit of the successors of the Members, respectively. Neither Member may assign any right or obligations hereunder without the written consent of the other. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized and their official seals to be hereto affixed, on the day and year set opposite the name of each of the parties. Dated: January 30, 2012 CITY OF GRAND TERRACE By: _______________________________ Mayor Dated: January 30, 2012 CITY OF GRAND TERRACE REDEVELOPMENT AGENCY By: _____________________________ Chairman Dated: January 30, 2012 GRAND TERRACE HOUSING AUTHORITY By: ______________________________ Chairman APPROVED AS TO FORM AND LEGALITY __________________________ Legal Counsel for City, Agency, and Housing Authority AGENDA REPORT MEETING DATE: January 30, 2012 Council Item (X ) CRA Item ( X ) TITLE: Post AB x1-26 RDA Dissolution Action to Transfer Funds from the Grand Terrace Community Redevelopment Agency with Local Agency Investment Fund to the City of Grand Terrace as Successor Agency PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adopt The Following Resolutions to: 1) Transfer funds of Grand Terrace Community Redevelopment Agency held by Local Agency Investment Funds to City of Grand Terrace as Successor Agency 2) Authorize City of Grand Terrace as Successor Agency to invest in the Local Agency Investment Fund BACKGROUND: On December 29, 2011, in the CRA v. Matosantos case, the Court upheld ABX1 26 and invalidated ABX1 27 thereby eliminating redevelopment agencies and the voluntary option to pay to continue redevelopment . All redevelopment agencies in California will be dissolved effective February 1, 2012 with assets, properties, and documents transferred to the successor agencies. On January 10, 2012 the City Council adopted a resolution to be the successor agency to the Grand Terrace Community Redevelopment Agency. Both the City and Grand Terrace Community Redevelopment Agency (CRA) have investment accounts with the Local Agency Investment Fund (LAIF) with the California State Treasurer. The State Treasurer is able to pool funds from state and local government agencies and invest such funds at favorable market investment rates, and provide liquidity to its’ customers. According to information from the State Treasurer the COUNCIL AGENDA ITEM NO. 3 Approvals Finance Director (if applicable) B.S. City Attorney RLA City Manager bma Pooled Money Investment Account Portfolio (PMIA) was $67.9 Billion on 12/31/11. The Local Agency Investment Fund (LAIF) is a part of PMIA. On January 25, 2012, the Office of the Treasurer announced quietly that it, in light of ABX1 26 and the Supreme Court decision, will no longer accept deposits or allow withdrawals of funds held in the name of redevelopment agencies on February 1, 2012. DISCUSSION: Office of the Treasurer will require a new resolution and new bank and authorization form in the name of the successor agency. Otherwise such funds held by the dissolving agency will not be available to the successor agency. Attached are two resolutions to effectively transfer such funds held by the Grand Terrace Community Redevelopment Agency to an account in the name of the City of Grand Terrace as Successor Agency and an authorizing resolution for an account with LAIF in the name the City of Grand Terrace as Successor Agency. FISCAL IMPACT: There are no fiscal impacts by the adoption of the resolutions. Respectfully submitted: /s/ Bernie Simon Bernie Simon, Finance Director ATTACHMENTS: 1) Resolution of Grand Terrace Community Redevelopment Agency to transfer Local Agency Investment Fund monies to City of Grand Terrace as Successor Agency 2) Resolution of the City Council authorizing City of Grand Terrace as Successor Agency to Invest in the Local Agency Investment Fund Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, CALIFORNIA, TRANSFERRING LOCAL AGENCY INVESTMENT FUNDS HELD IN NAME OF GRAND TERRACE COMMUNITY REDEVLOPMENT FUND TO CITY OF GRAND TERRACE, AS SUCCESSOR AGENCY PURSUANT TO HEALTH & SAFETY CODE SECTION 34173(B) WHEREAS, the Grand Terrace Community Redevelopment Agency, Grand Terrace, California (“Agency”) was formed for the purpose of revitalizing areas within the City of Grand Terrace pursuant to Health and Safety Code Section 33000, et. seq.; and WHEREAS, AB X1 26 required the dissolution of all redevelopment agencies in the state, including prohibitions on certain actions by these agencies and requiring certain actions to be taken; and WHEREAS, AB X1 27 provided that redevelopment agencies (“Agency”) could enter into a Voluntary Alternative Redevelopment Program (“VARP”); and WHEREAS, In California Redevelopment Association v. Matosantos, the California Supreme Court upheld AB X1 26 allowing for the dissolution of city redevelopment agencies and overturning AB X1 27 thus precluding redevelopment agencies continued existence as a VARP; and WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Agency previously authorized, by resolution, the deposit and withdrawal of Grand Terrace Community Redevelopment Agency monies in the Local Agency Investment Fund in the State Treasury in accordance with 16429.1 of the government code; and WHEREAS, California redevelopment agencies will dissolve on February 1, 2012 under the intentions of AB X1 26; WHEREAS, on January 10, 2012 the City Council elected, by Resolution No. 2012-01, to serve as the Successor Agency to the former Grand Terrace Community Redevelopment Agency; and WHEREAS, on January 24, 2012 the City Council passed Resolution No. 2012- 04, establishing a Redevelopment Obligation Retirement Fund pursuant to Health & Safety Code Section 34170.5(A). NOW THEREFORE, THE GRAND TERRACE REDEVELOPMENT AGENCY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The Agency finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution. SECTION 2. Grand Terrace Community Redevelopment Agency hereby transfers any and all funds, including accrued interest, to the City of Grand Terrace, as successor agency. SECTION 3. The City Manager acting on behalf of the successor agency, is hereby authorized to execute any and all Local Agency Investment Fund documents to close, transfer all monies of the former Grand Terrace Community Redevelopment Agency to the City of Grand Terrace as successor agency. SECTION 4. The Agency Secretary shall certify to the adoption of this Resolution. PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Chairman ATTEST: Tracey R. Martinez, Agency Secretary APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, Agency Secretary RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING THE CITY OF GRAND TERRACE AS SUCCESSOR AGENCY TO THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY TO INVEST IN THE LOCAL AGENCY INVESTMENT FUND WHEREAS, the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Local Agency Investment Fund is an authorized investment under the investment policy of the city and under government code section 53600; and WHEREAS, the Agency previously authorized, by resolution, the deposit and withdrawal of Grand Terrace Community Redevelopment Agency monies in the Local Agency Investment Fund in the State Treasury in accordance with 16429.1 of the government code; and WHEREAS, California redevelopment agencies will dissolve on February 1, 2012 under the intensions of AB X1 26; WHEREAS, on January 10, 2012 the City Council elected, by Resolution No. 2012-01, to serve as the Successor Agency to the former Grand Terrace Community Redevelopment Agency; and WHEREAS, on January 24, 2012 the City Council passed Resolution No. 2012- 04, establishing a Redevelopment Obligation Retirement Fund pursuant to Health & Safety Code Section 34170.5(A); and WHEREAS, the City Council acting as governing board of the Successor Agency does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the City of Grand Terrace as Successor Agency; and NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING, That the City Council acting as the City of Grand Terrace as Successor Agency does hereby authorize and account in the name of City of Grand Terrace as Successor Agency for the deposit and withdrawal of monies of the former Grand Terrace Community Redevelopment Agency BE IT FURTHER RESOLVED, that the following officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund: Betsy M. Adams, City Manager Tracey R. Martinez, City Clerk Bernard Simon, Finance Director Patricia Lunsford, Sr. Accounting Technician PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Mayor ATTEST: Tracey R. Martinez, City Clerk APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, City Clerk AGENDA REPORT MEETING DATE: January 30, 2012 Council Item (X ) CRA Item () TITLE: Establish Separate Account at Bank of America for Successor Agency Unexpended Proceeds of 2011 Tax Allocation Bonds PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adopt Resolutions to Authorize City of Grand Terrace as Successor Agency to Execute Banking Resolution with Bank of America BACKGROUND: On December 29, 2011, in the CRA v. Matosantos case, the Court upheld ABX1 26 and invalidated ABX1 27 thereby eliminating redevelopment agencies and the voluntary option to pay to continue redevelopment . All redevelopment agencies in California will be dissolved effective February 1, 2012 with assets, properties, and documents transferred to the successor agencies. On January 10, 2012 the City Council adopted a resolution to be the successor agency to the Grand Terrace Community Redevelopment Agency. In June 2011, the Grand Terrace Community Redevelopment Agency sold the 2011 A and 2011B Tax Allocation Bonds. There currently is $17,133.351 of unexpended bond proceeds at this time. DISCUSSION: Staff recommends establishing a separate bank account for the successor agency due to the upcoming dissolution of the redevelopment agency and the many unknown issues regarding the wind-down of the Agency and the status of unexpended bond proceeds combined with the desire to protect funds to the fullest extend possible. Bond Counsel was consulted and agrees with recommendation that the City of Grand Terrace, as Successor Agency, hold the bond proceeds in a separate bank account. COUNCIL AGENDA ITEM NO. 4 Approvals Finance Director (if applicable) B.S. City Attorney RLA City Manager bma FISCAL IMPACT: There are no fiscal impacts by the adoption of the banking resolution. Respectfully submitted: /s/ Bernie Simon Bernie Simon, Finance Director ATTACHMENTS: Resolution to Open Bank of America account for City of Grand Terrace as Successor Agency Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AUTHORIZING NEW BANK OF AMERICA BANK ACCOUNT FOR CITY OF GRAND TERRACE AS SUCCESSOR AGENCY WHEREAS, the City of Grand Terrace is a municipal corporation established under the laws of the State of California; and WHEREAS, Bank of America is a federally chartered bank under the laws of the United States; and WHEREAS, the City of Grand Terrace desires to establish a separate bank account for funds of the City of Grand Terrace as Successor Agency of the City of Grand Terrace Community Redevelopment Agency; and WHEREAS, the City Council designates the City Manager, Acting City Manager, if so designated, City Clerk and Finance Director as authorized signers on the Bank of America bank accounts; and WHEREAS, Bank of America requires the City to adopt a corporate resolution and authorization to designate authorized signers on bank accounts; THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE HEREBY RESOLVES THE FOLLOWING: 1) the foregoing is a complete, true and correct resolution adopted by the City Council of the City of Grand Terrace and that the resolution is still in full force and effect and has not been amended or revoked and do es not exceed the objects or powers of the City Council of the City of Grand Terrace. 2) the persons below are authorized account signers and are authorized to execute any banking documents, certificate of incumbency, tax information certificate and authorization as needed: Position Individual Name City Manager Betsy M. Adams Finance Director Bernard Simon Comm. & Econ Dev Director Joyce Powers City Clerk Tracey R. Martinez 3) Any One of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to execute documents on behalf of the City. 4) Any Two of the individuals named as authorized signers acting on behalf of the City of Grand Terrace is authorized to checks on behalf of the City. 5) Authorize the procurement and use of a signature stamp. All checks will require two signatures, except in the case of emergencies, when the signature stamp an authorized signer may be used. 6) The City Clerk shall certify to the adoption of this resolution. PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Mayor ATTEST: Tracey R. Martinez, City Clerk APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council held on the 30th day of January, 2012. Tracey R. Martinez, City Clerk AGENDA REPORT MEETING DATE: January 30, 2012 Housing Authority Item ( X ) TITLE: Adoption of a Resolution Electing to Become the Successor Housing Agency to the Grand Terrace Redevelopment Agency PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Adopt the Resolution electing to have the Grand Terrace Housing Authority assume the housing assets and housing functions previously performed by the Grand Terrace Redevelopment Agency pursuant to Health & Safety Code Section 34176. BACKGROUND: On December 29, 2011, the California Supreme Court (Court) upheld AB1X 26, which dissolves all of the redevelopment agencies in California, and struck down AB1X 27, which allowed redevelopment agencies to remain in existence if they opted in to the Voluntary Alternative Redevelopment Program (VARP). The City had opted into the VARP by adopting Ordinance No. 259. Because the Agency was going to remain in existence, the City was not required to decide at that time whether it wished to be the Successor Agency to the Redevelopment Agency and did not take action regarding the housing functions retained by the Redevelopment Agency. However, on January 10, 2012, the City elected to become the Successor Agency to the Agency, including assumption of the housing functions of the Redevelopment Agency. DISCUSSION: With the VARP stricken down by the Court, the Agency will be dissolved effective February 1, 2012. With regard to the housing assets and functions previously performed by the Agency, Health & Safety Code Section 34176 provides for the City to retain these at its option, which was previously included in the Successor Agency Resolution. HOUSING AUTHORITY ITEM NO. 1 Approvals Finance Director (if applicable) BS City Attorney KHB City Manager bma The City Council adopted Resolution ___ on January 30, 2012 to transfer the housing functions and assets to the Housing Authority. Authority staff and the City Attorney/Authority Attorney recommend that the Housing Authority accept the role of successor agency as to the housing functions and assets of the former Redevelopment Agency from the City as Successor Agency in order to ensure that all housing responsibilities and assets of the Agency are provided for. The funds in the Agency’s low to moderate income fund are expressly excluded from the housing assets which may be assumed by the City or Housing Authority. However, should subsequent legislative action authorize the funds from the low to moderate income fund to be retained by Successor Agencies, the Housing Authority would assume those funds to carry out its statutory functions. FISCAL IMPACT: The complete fiscal impact of the abolishing of redevelopment agencies and the actions required by AB x1 26 are unknown at this time. Staff is endeavoring to assess the impact on the City and the Housing Authority at this time and a full report will be provided to the Council and Authority Board at the earliest opportunity. Respectfully submitted: /s/ Joyce Powers Joyce Powers, Community and Economic Development Director ATTACHMENTS: 1. Resolution Electing to Assume the Agency’s Housing Assets and Functions by the Grand Terrace Housing Authority Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE GRAND TERRACE HOUSING AUTHORITY, ELECTING TO HAVE THE GRAND TERRACE HOUSING AUTHORITY RETAIN THE HOUSING ASSETS AND HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE GRAND TERRACE REDEVELOPMENT AG ENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176 WHEREAS, the Grand Terrace Redevelopment Agency (“Agency”) is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code § 3300 0 et seq.) (“CRL”); and WHEREAS, the City of Grand Terrace is a municipal corporation and a general law city under the California Government Code (“City”); and WHEREAS, the Grand Terrace Housing Authority (“Authority”) is a public body, corporate and politic, organized and existing under the California Health and Safety Code sections 34200, et. seq., (art 2, Chapter 1 of the Health and Safety Code); and WHEREAS, on December 29, 2011, in California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld ABX1 26, which dissolves all of the redevelopment agencies in California, and struck down ABX1 27, which allowed redevelopment agencies to remain in existence if City opted in to the “Voluntary Alternative Redevelopment Program” (“VARP”); and WHEREAS, the City had opted into the VARP by adopting Ordinance No. 259, which by its own terms would be null and void if the VARP was struck down; and WHEREAS, because the Agency was going to remain in existence, the City was not required to decide whether it wished to be a Successor Agency to the Agency or whether the City or Authority would retain the housing assets and functions previously performed by the Agency to the extent not previously assumed by the Authority; and WHEREAS, in footnote 25 of the Supreme Court’s decision, the Court extended the deadline for making the election only to January 13, 2012; and WHEREAS, pursuant to Health & Safety Code Section 34176, the City could either opt to retain the housing assets and functions previously performed by the Grand Terrace Redevelopment Agency or, by default, allow those assets and functions to be assigned to and assumed in accordance with Section 34176; and WHEREAS, the City has previously adopted a resolution to have the City of Grand Terrace assume all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Grand Terrace Redevelopment Agency; and WHEREAS, the City has adopted a resolution delegating the rights, powers, assets, liabilities, duties, and obligations associated with housing activities of the Grand Terrace Redevelopment Agency to the Grand Terrace Housing Authority. NOW THEREFORE, THE GRAND TERRACE HOUSING AUTHORITY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The above recitals are true and correct and are adopted as the findings of the Authority Board. SECTION 2. The Authority Board hereby assumes all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Grand Terrace Redevelopment Agency in accordance with Health & Safety Code Section 34176. SECTION 3. The Executive Director, or her designee, is hereby directed to file a copy of this resolution with the County Auditor-Controller. SECTION 4. The Executive Director is hereby authorized and directed to take such additional actions, and to execute all documents necessary and appropriate, for the City to transfer the housing activities and assets of the Grand Terrace Redevelopment Agency to the Authority in accordance with the requirements of the Health and Safety Code. SECTION 5. The Executive Director is hereby further authorized and directed to take such other and further actions, and sign such other further documents, as is necessary and proper in order to implement this Resolution in accordance with the requirements of the Health & Safety Code on behalf of the Authority. SECTION 6. This resolution shall become effective immediately upon its adoption. SECTION 7. The Authority Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.. PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Chairman ATTEST: Tracey R. Martinez, Secretary APPROVED AS TO FORM: Richard L. Adams, Housing Authority Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Secretary of the Housing Authority of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Housing Authority of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, Secretary AGENDA REPORT MEETING DATE: January 30, 2012 Housing Authority Item ( X ) TITLE: Approval of the Amended and Restated Exercise of Joint Powers Agreement for the Public Financing Authority to include the Grand Terrace Housing Authority PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: Adopt a Resolution Approving the Amended and Restated Joint Exercise of Powers Agreement for the Grand Terrace Public Financing Authority to include the Grand Terrace Housing Authority as a Party. BACKGROUND: Since 1990, The City and Redevelopment Agency have been parties to a joint powers authority agreement for purpose of issuing tax allocation bonds, the Public Financing Authority. When the Agency dissolves on January 31, 2012, the Agency may no longer be a party to the Public Financing Authority. DISCUSSION: Staff and the City Attorney recommend that the newly created Housing Authority become the second party to the PFA Agreement with the City. Attachment 1 is a Housing Authority Resolution approving the Amended and Restated Joint Exercise of Powers Agreement to include the Grand Terrace Housing Authority as a party. Exhibit “A” to the Resolution is the amendment Agreement. FISCAL IMPACT: This action allows the Public Financing Authority to continue in existence and allows the Housing Authority to participate in public financing to accomplish its goals. There is no fiscal impact attributed to the recommended actions other than staff and legal counsel time. HOUSING AUTHORITY ITEM NO. 2 Approvals Finance Director (if applicable) BS City Attorney KHB City Manager bma Respectfully submitted: /s/ Joyce Powers Joyce Powers, Community and Economic Development Director ATTACHMENTS: 1. Resolution amending the Public Financing Authority Agreement to add the Housing Authority Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE GRAND TERRACE HOUSING AUTHORITY APPROVING THE AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT FOR THE GRAND TERRACE PUBLIC FINANCING AUTHORITY TO INCLUDE THE HOUSING AUTHORITY AS A PARTY WHEREAS, the Grand Terrace Redevelopment Agency, Grand Terrace, California (“Agency”) was formed for the purpose of revitalizing areas within the City of Grand Terrace pursuant to Health and Safety Code Section 33000, et. seq.; WHEREAS, In California Redevelopment Association v. Matosantos, (“Matosantos”) the California Supreme Court upheld AB X1 26 allowing for the dissolution of city redevelopment agencies and overturning AB X1 27 thus precluding redevelopment agencies continued existence as a VARP; WHEREAS, a Public Financing Authority Joint Powers Agreement was previously entered between the City of Grand Terrace and the Agency; WHEREAS, under Matosantos, the dissolution of the Agency may result in a dissolution or winding up of the Grand Terrace Public Financing Authority; WHEREAS, the City activated the Grand Terrace Housing Authority, which has assumed all rights, powers, assets, liabilities, duties, obligations and functions associated with the housing activities of the Agency pursuant to Health and Safety Code Section 34176; and WHEREAS, the Grand Terrace Housing Authority seeks to participate in the Public Financing Authority to assist it in continuing its housing activities; NOW THEREFORE, THE GRAND TERRACE HOUSING AUTHORITY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The Grand Terrace Housing Authority hereby agrees to become a party to the Grand Terrace Public Financing Authority Agreement between the City and the Grand Terrace Redevelopment Agency. SECTION 2. The Grand Terrace Housing Authority hereby approves and ratifies the Amended and Restated Joint Exercise of Powers Authority of the Grand Terrace Public Financing Authority attached hereto as Exhibit A. SECTION 3. The Grand Terrace Housing Authority Secretary shall certify to the adoption of this Resolution. PASSED APPROVED AND ADOPTED by the Board of Directors of the Grand Terrace Housing Authority, Grand Terrace, California, at a special meeting held on the 30th of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Chairman ATTEST: Tracey R. Martinez, Secretary APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Secretary of the Housing Authority of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Housing Authority of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, Secretary 1 AMENDED AND RESTATED JOINT EXERCISE POWERS AGREEMENT GRAND TERRACE PUBLIC FINANCING AUTHORITY THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT, dated January 30, 2012, is by and between the City of Grand Terrace (the "City"), the Grand Terrace Housing Authority, and the Redevelopment Agency of the City of Grand Terrace (the "Agency"). Each duly organized and existing under the laws of the State of California. W I T N E S E T H; WHEREAS, the City and the Agency were initially parties to the Joint Exercise of Powers Agreement dated December 13 1990; and WHEREAS, the City activated the Grand Terrace Housing Authority (“Housing Authority”) by adoption of Resolution No. ___ on January 30, 2012; and WHEREAS, the City, the Agency and the Housing Authority are each authorized to own, lease, purchase, receive and hold property necessary or convenient for their governmental operations; and WHEREAS, the financing of the acquisition of property by the City, the Agency, and/or the Housing Authority, acting separately may result in duplication of effort, inefficiencies in administration, and excessive cost, all of which, in the judgment of the City, the Agency and the Authority could be eliminated if the financing of the acquisition of property was capable of being performed through a single public agency, and such is the purpose of this Agreement; and WHEREAS, the Housing Authority wishes to join the Public Financing Authority as a Member; and WHEREAS, the Marks-Roos Local Bond Pooling Act of 1985 authorized agencies formed under the Joint Exercise of Powers Law (hereinafter defined as the "Act") to assist in the financing of public capital improvements to be owned by any of its members or any other city, county, city and county, authority, district or public corporation of the State of California; NOW, THEREFORE, in consideration of the above promises and of the mutual promises herein contained, the City, the Agency and the Housing Authority do hereby agree as follows: 2 ARTICLE I DEFINITIONS Section 1.01. Definitions. Unless the context otherwise requires, the words and terms defined in this Article I shall, for the purpose herein, have the meanings herein specified. "Act" means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code. "Agreement" means this Agreement. "Authority" means the Grand Terrace Public Financing Authority established pursuant to the original Agreement. "Bond Law" means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Act (commencing with Section 6584), as now in effect or hereafter amended, Article 2 of the Act as now in effect or hereafter amended, or any other law available for use by the Authority in the authorization and issuance of bonds to provide for the financing of Obligations and/or Public Capital Improvements. "Bond Purchase Agreement" means an agreement between the Authority and the City, the Housing Authority, or the Agency, pursuant to which the Authority agrees to purchase Obligations from the City, the Housing Authority, or the Agency as the case may be. "Board" means the Board of Directors referred to in Section 2.03, which shall be the governing body of the Authority. "Bonds" means bonds of the Authority issued pursuant of the bond law. "Directors" means the representatives of the City appointed to the Board pursuant to Section 2.03. "Fiscal Year" means the period from July 1st to and including the following June 30th. "Local Agency" means a Member, or an agency or subdivision of that Member, sponsoring a project of Public Capital Improvements, or any city, county, city and county authority, district or public corporation of the State of California. "Members" means the City, the Housing Authority, and the Agency. 3 "Obligations" has the meaning given to the term "Bonds" in Section 6585 (c) of the Bond Law. "Public Capital Improvement" has the meaning given to such term in Section 6585 (g) of the Act, as in effect on the date hereof, and as hereafter amended. "Secretary" means the Secretary of the Authority appointed pursuant to Section 3.01. "Treasurer" means the Treasurer of the Authority appointed pursuant to Section 3.02. ARTICLE II GENERAL PROVISIONS Section 2.01. Purpose. This Agreement is made pursuant to the Act providing for the joint exercise of powers common to the City, the Housing Authority, and the Agency, and for other purposes as permitted under the Act, the Bond Law and as agreed by one or more of the parties hereto. The purpose of this Agreement is to provide for the financing of the Public Capital Improvements for, and working capital, liability and other insurance requirements of, a Local Agency through the acquisition by the Authority of such Public Capital Improvements and the leasing thereof to a Local Agency pursuant to Bond Purchase Agreements and/or the lending of funds by the Authority to a Local Agency. Section 2.02. Creation of Authority. Pursuant to the Act, there is hereby created a public entity to be known as the "Grand Terrace Public Financing Authority." The Authoity shall be a public entity separate and apart from the Members, and shall administer the Agreement. Section 2.03. Board of Directors. The Authority shall be administered by a Board of five (5) Directors, unless and until changed by amendment of this Agreement. The members of the City Council of the City, as such members may change from time to time, shall constitute the Directors of the Authority. The Board shall be called the "Board of Directors of the Grand Terrace Public Financing Authority". All voting power of the authority shall reside in the Board. Section 2.04. Meetings of the Board. (a) Regular Meetings. The Board shall provide for its regular meeting; provided, however, that at least one regular meeting shall be held each year. The regular meetings have been fixed by resolution of the Board to be held at 6:00 pm on the second City Council meeting date of May, and a copy of such resolution has been filed with each of the Members. 4 (b) Special Meetings. Special meetings of the Board may be called in accordance with the provisions of section 54956 of the California Government Code. (c) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (Section 54950 et seq. of the California Government Code). Section 2.05. Minutes. The Secretary shall cause to be kept minutes of the meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each director and to the members. Section 2.06 Voting. Each Director shall have one vote. Section 2.07. Quorum; Required Votes; Approvals. Directors holding a majority of the votes shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time. The affirmative votes of at least a majority of the Directors present at any meeting at which a quorum is present shall be required to take any action by the Board. Section 2.08. Bylaws. The Board may adopt, from time to time, such bylaws, rules and regulations for the conduct of its meetings as are necessary for the purpose hereof. ARTICLE III OFFICERS AND EMPLOYEES Section 3.01. Chairman, Vice-Chairman and Secretary. Chairman of the Board shall be the Mayor of the City, Vice-Chairman shall be the Mayor Pro Tem of the City, and shall appoint as Secretary the City Clerk of the City. The officers shall perform the duties normal to said offices. The Chairman shall sign contracts on behalf of the Authority, and shall perform such other duties as may be imposed by the Board. The Vice-Chairman shall act, sign contracts, and perform all of the Chairman's duties in the absence of the Chairman. The Secretary shall countersign all contracts signed by the Chairman or Vice-Chairman on behalf of the Authority, perform such other duties as may be imposed by the Board and cause a copy of this Agreement to be filed with the Secretary of State of the State of California pursuant to the Act. Section 3.02. Executive Director. The City Manager of the City is hereby designated as Executive Director of the Authority who shall act as the supervisor of staff members of the Authority. Section 3.03. Treasurer. Pursuant to Section 6505.6 of the Act, the Finance Director of the City is hereby designated as the Treasurer of the Authority. The 5 Treasurer shall be the depository, shall have the duties and obligation set forth in Section 6505 and 6505.5 of the Act and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. Section 3.04. Officers in Charge of Records, Funds and Accounts. Pursuant to Section 6505.1 of the Act, the Treasurer shall have charge of, handle and have access to all accounts, funds and money for the Authority and all records of the Authority relating thereto; and the Secretary shall have charge of, handle and have access to all other records of the Authority. Section 3.05. Bonding Persons Having Access to Public Capital Improvements. From time to time, the Board may designate persons, in addition to the Secretary and the Treasurer, having charge of, handling or having access to any records, funds or accounts of any public Capital Improvement of the Authority, and the respective among of the official bonds of the Secretary and the Treasurer and such other persons pursuant to Section 6505.1 of the Act. Section 3.06. Other Employees. The Board shall have the power to appoint and employ such other employees, consultants and, independent contractors as may be necessary for the purposes of this Agreement. All other privileges and immunities from liability, exemption from laws, ordinance, and rules, all pension, relief, disability, workers' compensation, and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them the same degree and extent while engaged in the performance of the functions and other duties under this Agreement. None of the Officers, Agents, or employees directly employed by the Board shall be deemed, by reason of their employment by the Board to be employed by the City, the Housing Authority, or the Agency or, by reason of their employment by the Board, to be subject to any of the requirements of the City, the Housing Authority, and/or Agency. Section 3.07. Assistant Officers. The Board may appoint such assistant to act in the place of the Secretary or other such assistant to act in the place of the Secretary or other officers of the Authority (other than any Director), and may by resolution provide for the appointment of additional officers of the authority who may or may not be Directors, as the Board shall from time to time deem appropriate. ARTICLE IV POWERS Section 4.01. General Powers. The Authority shall exercise, in the manner herein provided, the powers common to each of the Members, or as otherwise 6 permitted under the Act, and necessary to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 4.04. As provided in the Act, the Authority shall be a public entity separate from the Members. The Authority shall have the power to acquire and to finance the acquisition of Public Capital Improvements necessary or convenient for the operation of a Local Agency, and to acquire Obligations of a Local Agency. Section 4.02. Power to Issue Revenue Bonds The Authority shall have all of the powers provided in the Act, including, but not limited to, Article 4 of the Act (commencing with Section 6584, and including the power to issue Bonds thereunder. Section 4.03. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including, but not limited to, any or all of the following: (a) to make and enter into contract; (b) to employ agents or employees; (c) to acquire, construct, manage, maintain or operate any Public Capital Improvement, including the common powers of the Members, to acquire any Public Capital Improvement by the power of eminent domain; (d) to sue and be sued in its own name; (e) to issue Bonds and otherwise to incur debts, liabilities, or obligations, provided that no such bond, debt, liability, or obligation shall constitute a debt, liability, or obligation of the Members; (f) to apply for, accept, receive, and disburse grants, loans, and other aids from any agency of the United States of America or of the State of California; (g) to invest any money in the treasury pursuant to Section 6505.5 of the Act that is not required for the immediate necessities of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code; (h) To apply for letters of credit or other form of financial guarantees in order to secure the repayment of Bonds and enter into agreements in connection therewith; (i) to carry out and enforce all the provisions of this Agreement; ( i ) 7 (j) to make and enter into Bond Purchase Agreements; (k) to purchase Obligations of any Local Agency; and (l) to exercise any and all other powers as may be provided in the Act or in the Bond Law. Section 4.04. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Act and in the Bond Law, and, except for those powers set forth in the Bond Law, shall be subject (in accordance with Section 6509 of the Act) to the restrictions upon the manner of exercising such powers that are imposed upon the City in the exercise of similar powers. Section 4.05. Obligations of Authority. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of the Members. ARTICLE V METHODS OF PROCEDURE; CREDIT TO MEMBERS Section 5.01. Assumption of Responsibilities by the Authority. As soon as practical after the date of execution of this Amended and Restated Agreement, the Directors shall give notice (in the manner required by Section 2.04) of the re- organizational meeting of the Board. At said meeting, the Board shall provide for its regular meetings as required by Section 2.03 and elect a Chairman and Vice-Chairman, and appoint the Secretary. Section 5.02. Delegation of Powers. The Members hereby delegate to the Authority the power and duty to acquire, by lease, lease-purchase, installment sale agreements, or otherwise, or make loans to finance, such Public Capital Improvements as may be necessary or convenient for the operation of the Local Agency. Section 5.03. Credit to Members. All accounts or funds created and established pursuant to any instrument or agreement to which the Authority is a party, and any interest earned or accrued thereon, shall inure to the benefit of the Members in the respective proportions for which such funds or accounts were created. ARTICLE VI CONTRIBUTION; ACCOUNTS AND REPORT; FUNDS Section 6.01. Contributions. The Members may, in the appropriate circumstance, when required hereunder: (a) make contributions from their treasuries for the purposes set forth herein,(b) make payments of public funds to defray the cost of such purchases,(c) make advances of public funds for such purposes, such advances to be repaid as provided herein, or (d) use its personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Act are hereby incorporated into this Agreement. 8 Section 6.02. Accounts and Reports. To the extent not covered by the duties assigned to a trustee chosen by the Authority, the Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provisions of any trust indenture or trust agreement entered into with respect to the proceeds of any Bonds issued by the Authority. The books and records of the Authority in the hands of a trustee or the Treasurer shall be open to inspection at all reasonable times by representatives of the Members. The Treasurer within 120 days after the close of each Fiscal Year, shall give a complete written report of all financial activities for such fiscal year to the Members to the extent such activities are not covered by the report of such trustee. The trustee appointed under any trust indenture or trust agreement shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to carry out the provisions of said trust indenture or trust agreement. Said Trustee may be given such duties in said trust indenture or trust agreement as may be desirable to carry out this Agreement. Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of, and disburse Authority funds as nearly as practicable in accordance with generally accepted accounting practices, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement. Section 6.04. Annual Budget and Administrative Expenses. The Board shall adopt a budget for administrative expenses, which shall include all expenses not included in any financing issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally. ARTICLE VII TERM Section 7.01. Term. This Agreement shall become effective as of the date hereof and shall continue in full force and effect so long as any Bonds remaining outstanding, so long as the Authority shall own any interest in Public Capital Improvements, or so long as the Members wish to keep the Agreement in place. Section 7.02. Disposition of Assets. Upon termination of this Agreement, all property of the Authority, both real and personal, shall be divided among the parties hereto in such manner as shall be agreed upon by the parties. 9 Section 7.03. Withdrawal of Member. Should any Member withdraw, the Agreement will remain in full force and effect, and the Authority will continue to own any and all real or personal property held in its name, notwithstanding the withdrawal of any Member. No disposition of assets shall be made as provided in Section 7.02 above unless the Agreement is terminated. ARTICLE VIII MISCELLANEOUS PROVISIONS Section 8.01. Notices. Notices hereunder shall be in writing and shall be sufficient if delivered to the notice address of each party hereto for legal notices or as otherwise provided by a party hereto in writing to each of the other parties hereto. Section 8.02. Section Headings. All section headings in this are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provisions of this Agreement. Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. Section 8.04. Law Governing. 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 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Bonds issued by Authority or certificates of participation in payments to be made by the Authority or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all of the parties to this Agreement either or as required in order to carry out any of the provisions of this Agreement or for any other purpose, including without limiting addition of new parties (including any legal entities or taxing areas heretofore or hereafter created) in pursuance of the purposes of this Agreement. Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement. 10 Section 8.07. Severability Should any part, term, or provision of this Agreement be decided by any court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. Section 8.08. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of binding upon and shall inure to the benefit of the successors of the Members, respectively. Neither Member may assign any right or obligations hereunder without the written consent of the other. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized and their official seals to be hereto affixed, on the day and year set opposite the name of each of the parties. Dated: January 30, 2012 CITY OF GRAND TERRACE By: _______________________________ Mayor Dated: January 30, 2012 CITY OF GRAND TERRACE REDEVELOPMENT AGENCY By: _____________________________ Chairman Dated: January 30, 2012 GRAND TERRACE HOUSING AUTHORITY By: ______________________________ Chairman APPROVED AS TO FORM AND LEGALITY __________________________ Legal Counsel for City, Agency, and Housing Authority AGENDA REPORT MEETING DATE: January 30, 2012 Council Item ( ) CRA Item ( X ) TITLE: Post AB x1-26 RDA Dissolution Required Action to Adopt Revised Enforceable Obligation Payment Schedule and Revised Draft Recognized Obligation Payment Schedule PRESENTED BY: Bernie Simon, Finance Director RECOMMENDATION: Adopt The Following Resolutions to: 1) Adopt Approving Enforceable Obligation Payment Schedule and Draft Initial Recognized Obligation Payment Schedule 2) Adopt Finding that Need for Bond Proceeds Exist and Purpose of 2011 Tax Allocation Bond Proceeds can be Achieved BACKGROUND: On December 29, 2011, in the CRA v. Matosantos case, the Court upheld ABX1 26 and invalidated ABX1 27 thereby eliminating redevelopment agencies and the voluntary option to pay to continue redevelopment . All redevelopment agencies in California will be dissolved effective February 1, 2012 with assets, properties, and documents transferred to the successor agencies. On January 10, 2012 the City Council adopted a resolution to be the successor agency to the Grand Terrace Community Redevelopment Agency. The Agency board adopted the required Enforceable Obligation Payment Schedule (EOPS) on August 23, 2011 and adopted the required preliminary draft Recognized Obligation Payment Schedule (IROPS) on September 27, 2011 under H & S §34169. By February 1, 2012, the CRA must adopt an Enforceable Obligation Payment Schedule (EOPS) and By April 15, 2012 the Successor Agency must adopt a CRA AGENDA ITEM NO. 1 Approvals Finance Director (if applicable) B.S. City Attorney KHB City Manager bma preliminary draft Recognized Obligation Payment Schedule (IROPS) in accordance with H & S §34177. DISCUSSION: Enforceable Obligation Payment Schedule (EOPS) – February 1, 2012 until valid ROPS Staff used the initial EOPS from August 23, 2011 and updated the schedule for enforceable obligations of the successor agency through June 30, 2012. The EOPS also generally follows the budget and includes additional costs that may be anticipated to wind down the agency through the end of the fiscal year. After February 1st, only the obligations listed on the EOPS may be paid until a valid Recognized Obligation Payment Schedule (ROPS) is recognized. Generally under H & S §34171 an enforceable obligation means: a) bonds, as defined by applicable code sections b) Loans c) Payments required by federal and state governments d) Judgments and settlements e) Any legal and binding agreement f) Contracts necessary for administration or operations of the successor agency g) Amounts borrowed from or owed to RDA Low Mod Fund h) Excludes certain loans between agencies creating the redevelopment agency and within certain periods. Recognized Obligation Payment Schedule (ROPS) – May 1, 2012 and valid ROPS The CRA submits a draft IROPS to the successor agency and the successor agency must approve a final ROPS. The ROPS is a generally a summarized version of the EOPS. Staff is drafting the ROPS to mirror the EOPS. After May 1, 2012, only the payments listed on the ROPS may be paid by the successor agency and will replace the EOPS. However, the final ROPS must be certified in order to be valid. In order to be a certified, the ROPS must be: 1) audited by an external auditor for accuracy 2) submitted to and approved by the oversight board 3) a copy of the ROPS approved by the oversight board is submitted to the a) County Auditor Controller, b) California Dept of Finance, c) posted on website of successor agency. A new ROPS schedule must be completed every six months. Unresolved and Unclear issues A) Administrative costs limitations – currently the proposed EOPS and ROPS does not consider a 5.0% limit on property tax allocated to the Redevelopment Obligation Retirement Fund allocated to the successor agency for fiscal year 2011-12 and 3.0% thereafter. It is unclear how the limitation will work for the partial first year implementation. There is also some vague language of what exactly an administrative cost is. B) Use of unencumbered bond proceeds – it is clear that encumbered bond proceeds may still be used, however, it is less clear if the successor agency may use unencumbered bond proceeds. The legislation does state that if the original purpose of the proceeds cannot be achieved then the bonds must be defeased, however, it appears that that determination may be made by the oversight committee. Proceeds received from tax exempt bonds must be used for tax exempt purposes or there is risk that the tax exempt status of the bonds sold may be jeopardized. In addition, the legislation clearly states that bond proceeds shall be used for the purpose the bonds were issued unless the purpose cannot be achieved. Staff believes that the obligation to expend the proceeds for the intended purpose is dictated by the bond indenture and tax certificate and therefore has listed the expending of the bond proceeds as an obligation of the successor agency. Furthermore, staff believes that there is no reason the purpose of the bond proceeds may not be achieved. FISCAL IMPACT: There are no fiscal impacts by the adoption of the resolutions. Respectfully submitted: /s/ Bernie Simon Bernie Simon, Finance Director ATTACHMENTS: 1) Resolution approving revised EOPS and revised draft IROPS 2) Resolution adopting certain findings regarding necessity and that purpose of 2011 Tax Allocation bond proceeds can be achieved Council Action Approved as Recommended: Denied/Other: Council Motion: RESOLUTION NO. A RESOLUTION OF THE GRAND TERRACE REDEVELOPMENT AGENCY, CALIFORNIA, AMENDING THE ENFORCEABLE OBLIGATIONS PAYMENT SCHEDULE (EOPS) AND INITIAL RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (IROPS) AND TRANSMITTING THE INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE TO THE CITY AS SUCCESSOR AGENCY AS REQUIRED BY HEALTH AND SAFETY CODE SECTION 34169. WHEREAS, the Grand Terrace Redevelopment Agency, Grand Terrace, California (“Agency”) was formed for the purpose of revitalizing areas within the C ity of Grand Terrace pursuant to Health and Safety Code Section 33000, et. seq.; WHEREAS, AB X1 26 required the dissolution of all redevelopment agencies in the state, including prohibitions on certain actions by these agencies and requiring certain actions to be taken; WHEREAS, AB X1 27 provided that redevelopment agencies (“Agency”) could enter into a Voluntary Alternative Redevelopment Program (“VARP”); WHEREAS, In California Redevelopment Association v. Matosantos, the California Supreme Court upheld AB X1 26 allowing for the dissolution of city redevelopment agencies and overturning AB X1 27 thus precluding redevelopment agencies continued existence as a VARP; WHEREAS, on or about August 23, 2011, the Agency adopted an Enforceable Obligation Payment Schedule pursuant to Health and Safety Code Section 34169(g); WHEREAS, on or about September 27, 2011, the Agency adopted an Initial Recognized Obligation Payment Schedule pursuant to Health and Safety Code Section 34169(h); and WHEREAS, the Agency now wishes to amend the EOPS and IROPS along with transmit to the City as successor agency the attached IROPS. NOW THEREFORE, THE GRAND TERRACE REDEVELOPMENT AGENCY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The Agency finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution. SECTION 2. Pursuant to Health and Safety Code Section 34169(g) and 34169(h), the amended EOPS attached hereto as Attachment 1, and the amended IROPS attached hereto as Attachment 2, are hereby approved, adopted and incorporated by reference. SECTION 3. The Agency hereby transmits these IROPS to the City as successor agency. SECTION 4. The Agency’s Executive Director is hereby authorized to post the EOPS on the City website along with notify the County Auditor/Controller, the State Department of Finance, and the State Controller’s Office concerning this Resolution, the amended EOPS, and its online publication. SECTION 5. The Agency Secretary shall certify to the adoption of this Resolution. PASSED APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewitz, Chairman ATTEST: Tracey R. Martinez, Agency Secretary APPROVED AS TO FORM: Richard L. Adams, Agency Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, Agency Secretary City of Grand Terrace Community Redevelopment Agency 01/30/12 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total 1) 2004 Tax Allocation Bonds US Bank Bonds for housing & non-housing projects 3,790,812 2,002,376 36,188 1,966,188 2,002,376 2) 2011 A Tax Allocation Bond US Bank Bonds for non-housing projects 29,163,212 1,100,498 420,900 679,598 1,100,498 3) 2011 B Tax Allocation Bond US Bank Bonds for non-housing projects 9,698,770 635,185 209,545 425,640 635,185 4) Trustee Fees US Bank Trustee fees on bonds 266,530 12,115 12,115 12,115 5) Zion Loan Zion First National Bank Refinanced refunding of bonds for projects 2,421,052 254,848 127,424 127,424 254,848 6) SERAF Transfer Housing Fund Repayment of loan for SERAF 448,636 448,636 448,636 448,636 7) Repayment of Debt Service SB Valley Muni Water Repay incorrect debt service distrib by SBAC 2,295,360 232,888 232,888 232,888 8) Agency Attorney Jones and Mayer Legal consulting on dissolution 48,000 48,000 4,000 4,000 4,000 4,000 4,000 4,000 24,000 9) Stater Brothers OPA Stater Brothers Markets Payment on participation agreement 1,207,500 241,500 60,375 181,125 241,500 10) Commercial Exteriors Viking Investments Prop Shopping center rehabilitation 220,429 220,429 220,429 220,429 11) Neighborhood Imp. Grant Qualified residents Exterior improvements/correct violations 39,035 39,035 7,807 7,807 7,807 7,807 7,807 39,035 12) Baseball Field Improvements Rock Bottom Construction of baseball field 42,469 42,469 42,469 42,469 13) Vista Grande Park Improvements Foundation of GT Installation of park improvements 35,000 35,000 20,000 15,000 35,000 14) Mich/Barton/LaPaix Lee and Stires/Webb Ass Infrastructure improvements 535,671 535,671 36,281 - 16,995 10,000 63,276 15) Residual Receipts City of Grand Terrace Affordable housing payment agreement 3,000,000 300,000 300,000 300,000 16) Developer MOU Grand Terr Partners LLC Terminate development agreement 375,000 375,000 375,000 375,000 17) Employee Costs City of Grand Terrace Agency direct employee costs 8,725,740 379,380 31,617 31,617 31,617 31,617 31,617 31,617 189,702 18) Employee Costs City of Grand Terrace Agency direct employee costs-PERS 2,500,000 62,620 5,218 5,218 5,218 5,218 5,218 5,218 31,308 19) Office Rent/Cost Allocation City of Grand Terrace Office space and operations 5,796,000 252,000 21,000 21,000 21,000 21,000 21,000 21,000 126,000 20) Cost Allocation-Adm O/H City of Grand Terrace G & A Administration indirect overhead 765,785 33,295 2,775 2,775 2,775 2,775 2,775 2,775 16,650 21) Cost Allocation-Adm O/H City of Grand Terrace G & A Administration indirect O/H Insurance 690,000 30,000 2,500 2,500 2,500 2,500 2,500 2,500 15,000 22) Consulting Services RSG Annual reporting requirements/administration 25,000 25,000 2,500 2,500 5,000 5,000 10,000 25,000 23) Consulting Services City News Group Advertising/Noticing 10,000 10,000 2,500 2,500 2,500 2,500 2,500 12,500 24) Consulting Services Smothers Appraisers Property Appraisals 13,400 13,400 9,000 4,400 13,400 25) Consulting Services Webb & Associates Traffic Engineering 125,000 50,000 4,000 4,000 4,000 4,000 4,000 20,000 26) Consulting Services ACE Weed Abatement Weed abatement for Agency property 100,000 20,000 10,000 10,000 20,000 27) Consulting Services K & A Engineering Infrastructure study /design 30,442 30,442 15,000 15,000 30,000 28) Consulting Services Chamber of Commerce Business development services 20,600 10,300 860 860 860 860 860 860 5,160 29) Consulting Services Urban Futures Continuing Disclosure Reporting- bond issues 84,000 7,000 3,500 3,500 7,000 30) Professional Services Stradling Yocca Attorney Services 4,000 4,000 1,000 2,000 1,000 4,000 Totals - This Page 72,477,443$ 7,451,087$ 338,139$ 892,949$ 532,741$ 161,152$ 132,277$ 4,485,717$ 6,542,975$ Totals - Other Obligations 149,884,860$ 6,648,345$ 1,159,388$ 25,500$ 30,500$ 265,500$ 23,000$ 5,141,457$ 6,645,345$ Grand total - All Pages 222,362,303$ 14,099,432$ 1,497,527$ 918,449$ 563,241$ 426,652$ 155,277$ 9,627,174$ 13,188,320$ * Revised Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late February 1, 2012. It is valid through 06/30/12. ** Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency. (The draft ROPS must be prepared by the Successor Agency by 03/01/12.) , ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34167 and 34169 (*) Page 1 of 2 Pages Payments by MonthTotal Outstanding Debt or Obligation Total Due During Fiscal Year Project Name / Debt Obligation Payee Description City of Grand Terrace Community Redevelopment Agency 01/30/12 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total 1) Statutory Pass Through City of Grand Terrace Statutory payment obligation 4,800,000 80,000 80,000 80,000 2) Statutory Pass Through San Bernardino Comm Coll Statutory payment obligation 4,800,000 80,000 80,000 80,000 3) Negotiated Pass Through Colton Joint USD Payment per agreement 10,861,960 1,158,888 1,158,888 - 1,158,888 4) Pass Through pd by County Taxing entities Payment per agreement 59,855,506 2,000,000 2,000,000 2,000,000 5) Housing Fund Deficit Low/Mod Housing Fund Statutory housing set aside 48,321,575 1,238,790 1,238,790 1,238,790 6) Professional Services HDL Property tax allocation reconciliation 56,000 8,000 2,500 5,500 8,000 7) Demolition of structures Contractor Demolition 21974 DeBerry 15,000 15,000 15,000 15,000 8) Consulting Services Contractor Bond Arbitrage Rebate Calculation and Re 80,500 3,500 3,500 3,500 9) Agency Owned Property Various contractors Property Maintenance and Insurance 30,000 6,000 500 500 500 500 500 500 3,000 10) Auditing Services RAMS Required annual auditing services 70,000 10,000 10,000 10,000 11) Consulting Services contractors Prof Svcs-Agency Dissolution-Oversight 200,000 50,000 10,000 10,000 10,000 10,000 10,000 50,000 12) Professional Services Special Counsel Successor Agency and Oversight Board 140,000 35,000 5,000 5,000 5,000 10,000 10,000 35,000 13) Low Mod Property Purchase Housing Authority Purchase property -commercial district 463,167 463,167 463,167 463,167 Grand Terrace Project Area Successor Agency-Contract2011A Bond Indenture -Public Infrastructur 13,510,568 500,000 250,000 250,000 500,000 14) Southwest project area: infrastructure study and design - 15) Southwest project area: infrastructure construction - 16) Barton Road infrastructure improvements 17) Michigan Street improvements: design and ROW acquisition - 18) Michigan Street improvements: construction - 19) Union Pacific/Barton Road bridge construction - 20) Strom drain and street rehabilitation: Van Buren, Pico, and Main Streets - 21) Mt. Vernon slope stabilization - 22) Vista Grande Park construction - Grand Terrace Project Area Property Sellers 2011B Bond Indenture -Property Acquisitio 3,622,784 1,000,000 1,000,000 1,000,000 23) Land Assembly for Southwest mixed-use area - 24) Land Assembly on Barton Road - 25) 2004 TABS Reserve Bond Reserve Requirement 1,300,000 - 26) 2011A TABS Reserve Bond Reserve Requirement 1,280,894 27) 2011B TABS Reserve Bond Reserve Requirement 476,906 - Totals - Other Obligations ***149,884,860$ 6,648,345$ 1,159,388$ 25,500$ 30,500$ 265,500$ 23,000$ 5,141,457$ 6,645,345$ * Revised Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late February 1, 2012. It is valid through 06/30/12. ** Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency. (The draft ROPS must be prepared by the Successor Agency by 03/01/12.) Per AB 26 - Section 34167 and 34169 (*) OTHER OBLIGATION PAYMENT SCHEDULE Page 2 of 2 Pages Payments by Month Project Name / Debt Obligation Total Outstanding Debt or Obligation Total Due During Fiscal Year DescriptionPayee Name of Redevelopment Agency:City of Grand Terrace Community Redevelopment Agency Page 1 of 2 Pages Project Area(s)Grand Terrace Project Area 01/30/12 2nd DRAFT INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34177 Project Name / Debt Obligation Payee Description Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total Funding Source** 1) 2004 Tax Allocation Bonds US Bank Bonds for housing & non-housing projects 3,790,812 2,002,376 36,188 1,966,188 2,002,376 RPTTA/BP 2) 2011 A Tax Allocation Bond US Bank Bonds for non-housing projects 29,163,212 1,100,498 420,900 679,598 1,100,498 RPTTA 3) 2011 B Tax Allocation Bond US Bank Bonds for non-housing projects 9,698,770 635,185 209,545 425,640 635,185 RPTTA 4) Trustee Fees US Bank Trustee fees on bonds 266,530 12,115 12,115 12,115 RPTTA 5) Zion Loan Zion First National Bank Refinanced refunding of bonds for projects 2,421,052 254,848 127,424 127,424 254,848 RPTTA 6) SERAF Transfer Housing Fund Repayment of loan for SERAF 448,636 448,636 448,636 448,636 RPTTA 7) Repayment of Debt Service SB Valley Muni Water Repay incorrect debt service distrib by SBA 2,295,360 232,888 232,888 232,888 RPTTA 8) Agency Attorney Jones and Mayer Legal consulting on dissolution 48,000 48,000 4,000 4,000 4,000 4,000 4,000 4,000 24,000 RPTTA 9) Stater Brothers OPA Stater Brothers Markets Payment on participation agreement 1,207,500 241,500 60,375 181,125 241,500 RPTTA 10) Commercial Exteriors Viking Investments Prop Shopping center rehabilitation 220,429 220,429 220,429 220,429 RPTTA 11) Neighborhood Imp. Grant Qualified residents Exterior improvements/correct violations 39,035 39,035 7,807 7,807 7,807 7,807 7,807 39,035 RPTTA 12) Baseball Field Improvements Rock Bottom Construction of baseball field 42,469 42,469 42,469 42,469 RPTTA 13) Vista Grande Park Improvements Foundation of GT Installation of park improvements 35,000 35,000 20,000 15,000 35,000 RPTTA 14) Mich/Barton/LaPaix Lee and Stires/Webb Ass Infrastructure improvements 535,671 535,671 36,281 - 16,995 10,000 63,276 RPTTA 15) Residual Receipts City of Grand Terrace Affordable housing payment agreement 3,000,000 300,000 300,000 300,000 RPTTA 16) Developer MOU Grand Terr Partners LLC Terminate development agreement 375,000 375,000 375,000 375,000 RPTTA 17) Employee Costs City of Grand Terrace Agency direct employee costs 8,725,740 379,380 31,617 31,617 31,617 31,617 31,617 31,617 189,702 RPTTA/ACA/RB 18) Employee Costs City of Grand Terrace Agency direct employee costs-PERS 2,500,000 62,620 5,218 5,218 5,218 5,218 5,218 5,218 31,308 RPTTA/ACA/RB 19) Office Rent/Cost Allocation City of Grand Terrace Office space and operations 5,796,000 252,000 21,000 21,000 21,000 21,000 21,000 21,000 126,000 RPTTA/ACA/RB 20) Cost Allocation-Adm O/H City of Grand Terrace G & A Administration indirect overhead 765,785 33,295 2,775 2,775 2,775 2,775 2,775 2,775 16,650 RPTTA/ACA/RB 21) Cost Allocation-Adm O/H City of Grand Terrace G & A Administration indirect O/H Insuranc 690,000 30,000 2,500 2,500 2,500 2,500 2,500 2,500 15,000 RPTTA/ACA/RB 22) Consulting Services RSG Annual reporting requirements/administrati 25,000 25,000 2,500 2,500 5,000 5,000 10,000 25,000 RPTTA 23) Consulting Services City News Group Advertising/Noticing 10,000 10,000 2,500 2,500 2,500 2,500 2,500 12,500 RPTTA 24) Consulting Services Smothers Appraisers Property Appraisals 13,400 13,400 9,000 4,400 13,400 RPTTA 25) Consulting Services Webb & Associates Traffic Engineering 125,000 50,000 4,000 4,000 4,000 4,000 4,000 20,000 RPTTA 26) Consulting Services ACE Weed Abatement Weed abatement for Agency property 100,000 20,000 10,000 10,000 20,000 RPTTA 27) Consulting Services K & A Engineering Infrastructure study /design 30,442 30,442 15,000 15,000 30,000 RPTTA 28) Consulting Services Chamber of Commerce Business development services 20,600 10,300 860 860 860 860 860 860 5,160 RPTTA 29) Consulting Services Urban Futures Continuing Disclosure Reporting- bond issu 84,000 7,000 3,500 3,500 7,000 RPTTA 30) Professional Services Stradling Yocca Attorney Services 4,000 4,000 1,000 2,000 1,000 4,000 RPTTA -$ Totals - This Page 72,477,443$ 7,451,087$ 338,139$ 892,949$ 532,741$ 161,152$ 132,277$ 4,485,717$ 6,542,975$ Totals - Page 2 149,884,860$ 6,648,345$ 1,159,388$ 25,500$ 30,500$ 265,500$ 23,000$ 5,141,457$ 6,645,345$ Totals - Page 3 -$ -$ -$ -$ -$ -$ -$ -$ -$ Totals - Page 4 -$ -$ -$ -$ -$ -$ -$ -$ -$ Totals - Other Obligations -$ -$ -$ -$ -$ -$ -$ -$ -$ Grand total - All Pages 222,362,303$ 14,099,432$ 1,497,527$ 918,449$ 563,241$ 426,652$ 155,277$ 9,627,174$ 13,188,320$ *Payment amount is extimated, if exact payment amount is not known. ** LMIHF - Low and Moderate Income Housing Fund; BP - Bond Proceeds; RB - Reserve Balances; ACA - Administrative Cost Allowance; RPTTA - Redevelopment Property Tax Trust Fund; O - Other Total Outstanding Debt or Obligation Payments by month* Total Due During Fiscal Year Name of Redevelopment Agency: City of Grand Terrace Community Redevelopment Agency Page 2 of 2 Pages Project Area(s)Grand Terrace Project Area 01/30/12 2nd DRAFT INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34177 Project Name / Debt Obligation Payee Description Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Total Funding Source** 1) Statutory Pass Through City of Grand Terrace Statutory payment obligation 4,800,000 80,000 80,000 80,000 RPTTA 2) Statutory Pass Through San Bernardino Comm Col Statutory payment obligation 4,800,000 80,000 80,000 80,000 RPTTA 3) Negotiated Pass Through Colton Joint USD Payment per agreement 10,861,960 1,158,888 1,158,888 - 1,158,888 RPTTA 4) Pass Through pd by County Taxing entities Payment per agreement 59,855,506 2,000,000 2,000,000 2,000,000 RPTTA 5) Housing Fund Deficit Low/Mod Housing Fund Statutory housing set aside 48,321,575 1,238,790 1,238,790 1,238,790 RPTTA 6) Professional Services HDL Property tax allocation reconciliation 56,000 8,000 2,500 5,500 8,000 RPTTA 7) Demolition of structures Contractor Demolition 21974 DeBerry 15,000 15,000 15,000 15,000 RPTTA 8) Consulting Services Contractor Bond Arbitrage Rebate Calculation and R 80,500 3,500 3,500 3,500 RPTTA 9) Agency Owned Property Various contractors Property Maintenance and Insurance 30,000 6,000 500 500 500 500 500 500 3,000 RPTTA 10) Auditing Services RAMS Required annual auditing services 70,000 10,000 10,000 10,000 RPTTA 11) Consulting Services contractors Prof Svcs-Agency Disolution-Oversight 200,000 50,000 10,000 10,000 10,000 10,000 10,000 50,000 RPTTA 12) Professional Services Special Counsel Successor Agencyand Oversight Board 140,000 35,000 5,000 5,000 5,000 10,000 10,000 35,000 RPTTA 13) Low Mod Property Purchase Housing Authority Purchase property -commercial district 463,167 463,167 463,167 463,167 RB 14) Grand Terrace Project Area Successor Agency-Contrac2011A Bond Indenture -Public Infrastructu 13,510,568 500,000 250,000 250,000 500,000 BP 15) Southwest project area: infrastructure study and design - BP 16) Southwest project area: infrastructure construction - BP 17) Barton Road infrastructure improvements BP 18) Michigan Street improvements: design and ROW acquisition - BP 19) Michigan Street improvements: construction - BP 20) Union Pacific/Barton Road bridge construction - BP 21) Strom drain and street rehabilitation: Van Buren, Pico, and Main Streets - BP 22) Mt. Vernon slope stabilization - BP 23) Vista Grande Park construction - BP 24) Grand Terrace Project Area Property Sellers 2011B Bond Indenture -Property Acquisiti 3,622,784 1,000,000 1,000,000 1,000,000 BP 25) Land Assembly for Southwest mixed-use area - BP 26) Land Assembly on Barton Road - BP 27) 2004 TABS Reserve Bond Reserve Requirement 1,300,000 - BP 28) 2011A TABS Reserve Bond Reserve Requirement 1,280,894 - BP 29) 2011B TABS Reserve Bond Reserve Requirement 476,906 - BP 30)- 31)- 32)- 33)- 34)- 35)- 36)- 37)- 38)- 39)- 40)- Totals - This Page 149,884,860.00$ 6,648,345.00$ 1,159,388.00$ 25,500.00$ 30,500.00$ 265,500.00$ 23,000.00$ 5,141,457.00$ 6,645,345.00$ *Payment amount is estimated, if exact payment amount is not known. ** LMIHF - Low and Moderate Income Housing Fund; BP - Bond Proceeds; RB - Reserve Balances; ACA - Administrative Cost Allowance; RPTTA - Redevelopment Property Tax Trust Fund; O - Other Total Outstanding Debt or Obligation Payments by month* Total Due During Fiscal Year RESOLUTION NO. A RESOLUTION OF THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, CALIFORNIA, ADOPTING CERTAIN FINDINGS REGARDING NECESSITY AND THAT PURPOSE OF 2011 TAX ALLOCATION PROCEEDS CAN BE ACHIEVED WHEREAS, the Grand Terrace Community Redevelopment Agency, Grand Terrace, California (“Agency”) was formed for the purpose of revitalizing areas within the City of Grand Terrace pursuant to Health and Safety Code Section 33000, et. seq.; WHEREAS, resolution CRA-2010-01 approved the sixth amendment to the redevelopment plan of the City of Grand Terrace Community Redevelopment Agency to address outlining community needs due to inadequate public improvements, obsolete design and construction; deteriorating and dilapidated buildings; WHEREAS, the City of Grand Terrace Community Redevelopment Agency developed a project list as detailed in Schedule A which listed projects in the project area would be funded in full or partially with bond proceeds and therefore a basis for which bonds would be issued; WHEREAS, the City of Grand Terrace has no other funds to undertake the projects listed on Schedule A; WHEREAS, the City of Grand Terrace Community Redevelopment Agency received proceeds from the sale of the 2011A Tax Allocation Bonds and the sale of 2011B Tax Allocation Bonds in June 2011; WHEREAS, the City as successor agency is legally obligated to perform the covenants of the 2011 Tax Allocation Bonds indenture and has a fiduciary responsibility to maintain the tax exempt status for bondholders of the 2011 Tax Allocation Bonds; WHEREAS, the Grand Terrace Community Redevelopment Agency finds under Health and Safety Code section 34177(i), that community needs continue to exist for the projects listed in Schedule A for which exists bond proceeds required to be expended on the projects listed on Schedule A and that the project purposes can be achieved with the use of such proceeds; WHEREAS, AB X1 26 required the dissolution of all redevelopment agencies in the state, including prohibitions on certain actions by these agencies and requiring certain actions to be taken; WHEREAS, In California Redevelopment Association v. Matosantos, the California Supreme Court upheld AB X1 26 allowing for the dissolution of city redevelopment agencies and overturning AB X1 27 thus precluding redevelopment agencies continued existence; WHEREAS, the Grand Terrace Community Redevelopment Agency finds in response to Health and Safety Code section 34177(i), that community needs continue to exist for the projects listed in Schedule A and therefore the outstanding bonds should not be defeased; WHEREAS, on or before February 1, 2012, the Agency will adopt a revised Enforceable Obligation Payment Schedule pursuant to Health and Safety Code section 34169(g); WHEREAS, on or before February 1, 2012, the Agency will adopt an amended Initial Recognized Obligation Payment Schedule pursuant to Health and Safety Code section 34169(h); and NOW THEREFORE, THE GRAND TERRACE REDEVELOPMENT AGENCY DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: SECTION 1. The Agency finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution. SECTION 2. Listed projects on Schedule A are obligations under the bond indenture up to the amount of bond funds and are included as obligations pursuant to Health and Safety Code Section 34169(g) and 34169(h), and included on the amended EOPS and the amended IROPS. SECTION 3. The Agency Secretary shall certify to the adoption of this Resolution. PASS, APPROVED AND ADOPTED this 30th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Walt Stanckiewtiz, Chairman ATTEST: Tracey R. Martinez, Agency Secretary APPROVED AS TO FORM: Richard L. Adams, City Attorney State of California ) County of San Bernardino )ss. State of California ) I, Tracey R. Martinez, hereby certify that I am the duly appointed City Clerk of the City of Grand Terrace and the Agency Secretary of the Community Redevelopment Agency of the City of Grand Terrace and that the foregoing resolution was duly adopted at a special meeting of the City Council and the Community Redevelopment Agency of the City of Grand Terrace held on the 30th day of January, 2012. Tracey R. Martinez, Agency Secretary Schedule A Agency Infrastructure Projects Completion period: 2011-2016 A. Tax-Exempt Bonds 1 Southwest area: infrastructure study and design 600,000 2 Southwest area: infrastructure construction 10,000,000 3 Barton Road infrastructure improvements 1,000,000 4 Michigan Street improvements: design and ROW acquisition 400,000 5 Michigan Street improvements: construction 3,000,000 6 Union Pacific/Barton Road bridge construction 500,000 7 Strom drain and street rehabilitation: Van Buren, Pico, and Main Streets 12,000,000 8 Mt. Vernon slope stabilization 2,000,000 9 Vista Grande park construction 70,000 TOTAL (tax-exempt) Projects $29,570,000 B. Taxable Bonds 1 Land Assembly for Southwest mixed-use area 2,000,000 2 Land Assembly on Barton Road 1,500,000 TOTAL (taxable) Projects $3,500,000 A Tax Exempt Bond Projects 29,570,000 B Taxable Bond Projects 3,500,000 TOTAL Projects $33,070,000 CRA ITEM NO. 2 – PLEASE SEE CITY COUNCIL ITEM NO. 3 FOR COMPLETE REPORT. CRA AGENDA ITEM NO. 2 AGENDA REPORT MEETING DATE: January 30, 2012 Council Item ( ) CRA Item ( X ) TITLE: Transfer of ownership of parcels owned by the Agency’s Low to Moderate Income Housing Fund to the City’s Housing Authority PRESENTED BY: Joyce Powers, Community and Economic Development Director RECOMMENDATION: 1. Approve the transfer of title to three properties acquired by the Agency’s Low to Moderate Income Housing Fund to the City’s Housing Authority, acting as the Successor Agency, to comply with Assembly Bill XI 26. 2. Authorize the Executive Director to execute the three attached Quitclaim Deeds and take all necessary related actions. 3. Authorize the Executive Director/City Manager to complete actions necessary to transfer Agency shares of Riverside Highland water stock to the Housing Authority as appropriate. BACKGROUND: On December 29, 2011, the State Supreme Court upheld Assembly Bill 26, which amended the California Health and Safety Code (H & S Code), and thereby dissolved redevelopment agencies. Under the new Health and Safety Code Section 34172, on January 10, 2012, the City adopted a Resolution electing to be the dissolving Agency’s successor for purposes of winding down the Agency’s activities. Pending any further Court decisions or new legislation, the City is now obligated to undertake the required actions, beginning February 1, 2012. CRA AGENDA ITEM NO. 3 Approvals Finance Director (if applicable) N/A City Attorney KHB/RLA City Manager bma DISCUSSION: H & S Code Section 34177 describes the responsibilities of the successor agencies, including the disposal of the assets and properties of the former redevelopment agency. Legal counsel has recommended to staff to transfer title to the three Agency’s properties acquired with housing funds to the Housing Authority, acting as the successor agency, before the Agency is dissolved by law on January 31, 2012. This will allow the Housing Authority to property assume the Agency’s housing related duties and accept the housing assets. On January 24, 2012, the City and Agency took action to transfer title to 13 parcels owned by the Agency’s 80% fund to the City as the successor agency. The Agency also owns property acquired with Low to Moderate Income Housing funds, which are the three additional parcels subject to this report’s recommendations. The parcels to be transferred to the Housing Authority include: 1. APN 0275-251-04 at 11605 Canal Street 2. APN 1167-231-01 at 22293 Barton Road 3. APN 1167-311-01 at 22317 Barton Road The Barton Road parcels are within a commercial zoning district, and 11695 Canal Street is within a multi-family residential district. Staff has prepared the attached Quitclaim Deeds transferring title to the City’s Housing Authority, acting as the successor agency. Once approved and executed, the documents will be recorded on or before January 31, 2012 unless new legislation or court order stalls the dissolution process or redirects Agency actions. In addition, the Agency owns approximately four shares of Riverside Highland water stock which would be transferred in conjunction with the title transfers. FISCAL IMPACT: There is no fiscal impact associated with preparation and approval of the Quitclaim Deeds other than staff time and recording costs. Future fiscal impacts on the General Fund as properties are sold is not known at this time. Respectfully submitted: /s/ Joyce Powers Joyce Powers, Community and Economic Development Director ATTACHMENTS: 1. Quitclaim Deed for APN 0275-251-04 2. Quitclaim Deed for APN 1167-231-01 3. Quitclaim Deed for APN 1167-311-01 Council Action Approved as Recommended: Denied/Other: Council Motion: ATTACHMENT NO. 1 QUITCLAIM DEED APN 0275-251-04 Assessor’s Parcel Number: 0275-251-04-0000 QUITCLAIM DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE GRANTOR (S) THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, a municipal corporation hereby remises, releases and quitclaims to THE GRANTEE THE GRAND TERRACE HOUSING AUTHORITY, a public body corporate and politic, acting as the Successor Agency to the GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY as defined by California Health and Safety Code Section 34171(j) the following described real property in the City of Grand Terrace, County of San Bernardino, State of California, with the following legal description described in Exhibit “A” and by reference made a part hereof. IN WITNESS WHEREOF, the Grantor hereto has caused this Quitclaim Deed to be executed as of this 30th day of January, 2012. By: Name: RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF GRAND TERRACE 22795 BARTON ROAD GRAND TERRACE, CA 92313 ATTN: CITY CLERK (Space above this line for Recorder’s use) Exempt from Recording Fee Government Code Section 6103 Exempt from Documentary Transfer Tax Revenue & Taxation Code § 11922 EXHIBIT “A“ LEGAL DESCRIPTION THAT PTN LOT 4 & PTN LOT 5 BLK E RESUB GRAND TERRACE TR COM AT PT 247.81 FT NLY ALG C/L MT VERNON AVE FROM SLY LI LOT 4 TH N 89 DEG 48 MIN 16 SECONDS W ON A LI PARALLEL TO SD SLY LI LOT 4 742.03 FT TO TRUE POB TH ALG SAME LI EXTENDED 291.76 FT TO SELY LI OF R/W OF GAGE CANAL AS SHOWN IN BK 7 OR REC OF SURVEYS PG 88-92 TH N 50 DEG 57 MIN 41 SECONDS E ALG SD SELY LI OF R/W SD GAGE CANAL 300.99 FT TH CONT ALG SD SELY LI OF R/W SD GAGE CANAL N 51 DEG 17 MIN 20 SECONDS E 79.68 FT TH S 01 DEG 00 MIN 12 SECONDS W 240.36 FT TO TRUE POB FORMERLY KNOWN AS RESUB GRAND TERRACE TRACT PTN LOTS 4 AND 5 BLK E BEG 258 FT N OF SE COR LOT 4 TH W 742.03 FT FOR TRUE POB TH CONTINUE W 241.69 FT TO E LI OF GAGE CANAL TH NLY ALG E LI GAGE CANAL 386.34 FT TH SLY 298.92 FT TO POB .82 AC ATTACHMENT NO. 2 QUITCLAIM DEED APN 1167-231-01 Assessor’s Parcel Number: 1167-231-01-0000 QUITCLAIM DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE GRANTOR (S) THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, a municipal corporation hereby remises, releases and quitclaims to THE GRANTEE THE GRAND TERRACE HOUSING AUTHORITY, a public body corporate and politic, acting as the Successor Agency to the GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY as defined by California Health and Safety Code Section 34171(j) the following described real property in the City of Grand Terrace, County of San Bernardino, State of California, with the following legal description described in Exhibit “A” and by reference made a part hereof. IN WITNESS WHEREOF, the Grantor hereto has caused this Quitclaim Deed to be executed as of this 30th day of January, 2012. By: Name: RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF GRAND TERRACE 22795 BARTON ROAD GRAND TERRACE, CA 92313 ATTN: CITY CLERK (Space above this line for Recorder’s use) Exempt from Recording Fee Government Code Section 6103 Exempt from Documentary Transfer Tax Revenue & Taxation Code § 11922 EXHIBIT “A“ LEGAL DESCRIPTION EXHIBIT "A" LEGAL DESCRIPTION Rai property in the City of Grand Terrace, County of San Berman, State of California, described as follows: The East WO Asst of Lot 3, Stenos 5, Township 2 South, Range 4 We Sao Benterdiso Magian, in the County of San 13ernertfino, State of California, accords' to map of Hut aivereide Land Company, as per plat reoorded in book 6 clamp, pegs 44, records ci said county. Excepting therefrom that portico conveyed to the City of Grind Terms by deed recorded December 11, 19$6 as instrument NO. 86376453, OfficiM Records. //e , 7 - 31-'( ATTACHMENT NO. 3 QUITCLAIM DEED APN 1167-311-01 Assessor’s Parcel Number: 1167-311-01-0000 QUITCLAIM DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE GRANTOR (S) THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, a municipal corporation hereby remises, releases and quitclaims to THE GRANTEE THE GRAND TERRACE HOUSING AUTHORITY, a public body corporate and politic, acting as the Successor Agency to the GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY as defined by California Health and Safety Code Section 34171(j) the following described real property in the City of Grand Terrace, County of San Bernardino, State of California, with the following legal description described in Exhibit “A” and by reference made a part hereof. IN WITNESS WHEREOF, the Grantor hereto has caused this Quitclaim Deed to be executed as of this 30th day of January, 2012. By: Name: RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF GRAND TERRACE 22795 BARTON ROAD GRAND TERRACE, CA 92313 ATTN: CITY CLERK (Space above this line for Recorder’s use) Exempt from Recording Fee Government Code Section 6103 Exempt from Documentary Transfer Tax Revenue & Taxation Code § 11922 EXHIBIT “A“ LEGAL DESCRIPTION EXHIBIT "A" LEGAL DESCRIPTION 3 Red woody In d Otv ti Good Tomo County of Soo emordlno, SOO of Callornle dealt* as Mom A portico cf Int 2 of Wm 5, Tomb* 2 Sad% Row 4 1Voll, Sao eirriordlno Ow and Morldlen, Karel toffep cf Lands at*. ad RIvanide taxi WPM =kW is WO 6 ce AIM OW 44, Rowe d old Cleat ►, sni pullairty Mot* as alma Elosinning at VW llorrlmaat cow of mid Lcit Thom ions Os Wet loaf old Lot 2 a Moo d 41ILIP fed; Them tot o Oboe ft' 150 Theo Notes a dleonat al 416.27 Olt to tie North Ins d oil Lot Thom Oat a deems of 193 Rot Wong tfe Rath Ono of add be 2 to tin poet of bogineing. Said molt/ Is olio shoo on Urinal land Suropt Plot =MO In boot 5, pogo 25 to 20, MOO* wad fi stir. APft 1167-311-01-0-00 CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY MINUTES REGULAR MEETING – JANUARY 24, 2012 A regular meeting of the Community Redevelopment Agency, City of Grand Terrace, was held in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on January 24, 2012 at 7:30 p.m. PRESENT: Walt Stanckiewitz, Chairman Lee Ann Garcia, Vice-Chairman Darcy McNaboe, Agency Member Bernardo Sandoval, Agency Member Gene Hays, Agency Member Betsy M. Adams, City Manager Tracey Martinez, City Clerk Bernie Simon, Finance Director Joyce Powers, Community & Economic Development Director Richard Shields, Building & Safety Director Richard L. Adams II, City Attorney Sgt. Ed Finneran, San Bernardino County Sheriff =s Department Lt. Steve Dorsey, San Bernardino County Sheriff=s Department Rick McClintock, San Bernardino County Fire Department ABSENT: None CONVENE COMMUNITY REDEVELOPMENT AGENCY AT 7:30 P.M. 1. APPROVAL OF 1-10-2012 MINUTES CRA-2012-02 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY AGENCY MEMBER SANDOVAL, CARRIED 5-0, to approve the January 10, 2012 Minutes. 2. TRANSFER OF OWNERSHIP OF AGENCY-OWNED PARCELS TO THE CITY CRA-2012-03 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY VICE- CHAIRMAN GARCIA, CARRIED 5-0, to approve the transfer of ownership of the following Agency-owned parcels to the City as the Successor Agency to the Grand Terrace Community Redevelopment Agency: 0275-242-11-0000 0276-462-10-0000 0276-202-54-0000 0275-242-10-0000 1167-141-08-0000 1167-151-61-0000 1167-151-62-0000 1167-151-68-0000 1167-151-71-0000 1167-151-73-0000 1167-161-03-0000 1167-161-04-0000 1167-151-22-0000 Community Redevelopment Agency Minutes January 24, 2012 Page 2 3. POST AB X1-16 RDA DISSOLUTION AND SUCCESSOR AGENCY REQUIRED ACTION TO ESTABLISH A REDEVELOPMENT OBLIGATION RETIREMENT FUND AND RESOLUTIONS REGARDING FORGIVENESS OF OBLIGATIONS CRA-2012-04 MOTION BY AGENCY MEMBER MCNABOE, SECOND BY VICE- CHAIRMAN GARCIA, CARRIED 5-0, to approve a Resolution of the Grand Terrace Community Redevelopment Agency Regarding Forgiveness of Loans to Public Bodies as Required by AB 936 4. SETTLEMENT AGREEMENT AND RELEASE AGREEMENT WITH SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT CRA-2012-05 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER MCNABOE, CARRIED 5-0, to approve the Settlement Agreement and Release Agreement with the San Bernardino Valley Municipal Water District and Authorize the Executive Director to Execute the Agreement for the Agency. 5. SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE WITH COLTON JOINT UNIFIED SCHOOL DISTRICT CRA-2012-06 MOTION BY VICE-CHAIRMAN GARCIA, SECOND BY AGENCY MEMBER MCNABOE, CARRIED 5-0, to approve the Settlement Agreement and Mutual General Release Agreement with Colton Joint Unified School District for pass through payments Chairman Stanckiewitz adjourned the Community Redevelopment Agency Meeting at 7:40 p.m., until the next CRA/City Council Meeting that is scheduled to be held on Tuesday, February 14, 2012 at 6:00 p.m. SECRETARY of the Community Redevelopment Agency of the City of Grand Terrace CHAIRMAN of the Community Redevelopment Agency of the City of Grand Terrace