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HomeMy WebLinkAboutCOMPENSATION AGREEMENT BETWEEN CITY AND REDEVELOPMENT AGENCY - 1983-06-20APPROVED BY CITY COUNCIL Rr-QUEST FOR CITY COUNCr. REDEVELOPMENT AGENCY A DATE: October 25, 1993 -- 2 S 19-92 SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCI SUBMITTED BY; MICHAEL T. UBERUAGA, City Administrator PREPARED BY: ROBERT J., FRANZ, Deputy City Administrate BARBARA A. KAISER, Deputy City Administrator Cc SUBJECT: REVISED OPERATIVE AGREEMENTS BETWEEN CITY AND REDEVELOPMENT AGENCY Consistent with Council Policy: [ X ] Yes ( ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachment d STATEMENT OF OBJECTIVE: The City Attorney has identified a need to update the basic operative agreements between the City and Redevelopment Agency and its five project areas. RECOMMENDED COUNCIL/AGENCY ACTION: That the Council/Agency approve the attached revised operative agreements for the five project areas. ANALYSIS: When the Agency adopted project areas, operative agreements were also made with the City which describe how the Agency and City will cooperate in advancing the Agency's goals. The original operative agreements were established between 1983 and 1984 and are amended annually to show increases and decreases in the amount of debt each project area owes to the City. The original agreements allow City staff time worked on Redevelopment projects to be counted as Agency debt to the City. In recent operative agreement amendments, however, Agency staff time worked on City projects have been counted as credits against Agency debt. The City Attorney recently recommended that, because of this, the City/Agency amend these agreements allowing for Agency staff time worked on City projects to be credited against Agency debt. The attached agreement identifies allowable charges and repayment of debt between the City and Agency. FUNDING SOURCE: None. ALTERNATIVE ACTION: Do not amend the agreements ATTACHMENTS: Amendment to Operative Agreement r- OPERATIVE AGREEMENT AN AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY TO IMPLEMENT THE REDEVELOPMENT PLAN BY PROVIDING FOR DEBT REPAYMENT THIS AGREEMENT is entered into this 20th day of September 1993, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation (herein "CITY") and the HUNTINGTON BEACH REDEVELOPMENT AGENCY, a public entity authorized to transact business pursuant to the provisions of Section 33000 et seq. of the California Health and Safety Code (herein "Agency"). WHEREAS, pursuant to the Cooperative Agreement between the City and Agency dated June 20, 1983, the City agreed to provide to the Agency certain assistance and to otherwise cooperate with the Agency in carrying out the implementation of the redevelopment plans; and Said assistance has included the City providing the Agency with both administrative and/or technical services, constructing required public improvements and facilities as appropriate and necessary and providing funds to carry out these and other Agency activities and the Agency shall be obligated to repay money loaned by the City; and Said services, improvements, facilities and funds will be specified in Operative Agreements which will also identify the terms under which the City will be reimbursed for the associated costs; NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach agrees to provide the following as partial repayment of previously incurred debt: 7/detrepay/09/13193 Section 1: Agency shall provide the necessary staff support to carry out the planning, engineering and administrative activities required by the City for business development outside of redevelopment project areas. City shall be reimbursed for all costs incurred, if any, in carrying out this agreement with future Agency revenues. City shall credit Agency with repayment of Agency owned debt in an amount proportionate to the value of services rendered by Agency staff. Section 2: Agency and City shall keep such accounting records as will enable the City and Agency to determine the actual time spent, costs incurred and/or monies reimbursed and debt outstanding. Agency and City will execute project or budget specific operative agreements to implement the terms of this agreement as projects and budget items are approved. IN WITNESS WHEREOF, the parties hereto have executed this document as of the date first above written. REDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH B Chairperson Mayor ATTEST: City/Agency Clerk INITIATED AND APPROVED By: 1"J'� a� Director of Economic 9/2q+93 Development APPROVED AS TO FORM: Bc Y City Attorney/Agency Counsel 1 al IF REVIEWED AND APPROVED: 4/RIOWA 5J� REQI` :ST FOR CITY COU''1 AIL/ REDEVELOPMENT AGENCY ACTION RH 87-59 Date October 19, 1987 Submitted to: Honorable Mayor/Chairman and City Council/Agency Members Submitted by: Paul E. Cook, Interim City Administrator/Chief Executive Officer�y Prepared by: Douglas N. LaBelle, Deputy City Administrator/Community Devel C£3w L t* PRO Subject: REDEVELOPMENT AGENCY COMPENSATION . M 7 Consistent with Council Policy? [ ] Yes D, New Policy or Exceptio �/ ...... CITY CL Statement of Issue, Recommendation, Analysis, Funding Source, Alternative ments: j X STATEMENT OF ISSUE: At the Council Meeting of May 4, 1987 Council voted to establish the fourth Monday of each month, except June 1987, to be a Redevelopment Agency Meeting to start at 7:00 p.m. The Council also voted to pay Agency Member $125 for the fourth Monday Redevelopment Agency Meeting. There would be maximum of two special meetings per month. It has been pointed out by the City Attorney that under the provisions of Health and Safety Code 33114 and 33114.5, that for cities under 200,000 population (Huntington Beach population is 185,000), compensation shall not exceed $30 per member for each meeting attended by the member. No member shall receive compensation for attending more than four meetings of the Agency during any calendar month. In addition, members shall receive their actual and necessary expenses incurred in the discharge of their duties. RECOMMENDATION: Staff recommends that the City Council authorize compensation for the Redevelopment Agency as provided for in the Health and Safety Code Sections 33114 and 33114.5, which is $30 per meeting for each meeting attended with a maximum of four meetings. In addition, members shall receive actual and necessary expenses incurred in the discharge of their duties. Besides authorizing this new compensation schedule action is needed to amend Section 1 a. of the Cooperation Agreement between the City of Huntington Beach and the Redevelopment Agency. ANALYSIS: The change in compensation for Redevelopment Agency Members is in keeping with the State of California Health and Safety Code regarding payment for Redevelopment Agency Members. FUNDING: The funding source will be from appropriated funds in the Redevelopment Agency budget. PI 0 4/84 W" 0 R H 81-59 October 19, 1987 Page Two ALTERNATIVE ACTION: An alternative would be for Council to formulate another compensation schedule within existing guidelines provided by the State of California Health and Safety Code. ATTACHtIENTS: 1. Copy of Council Action of May 4, 1987 regarding Redevelopment Agency compensation and meeting schedule. 2. Resolution amending Cooperation Agreement between the City of Huntington Beach and the Redevelopment Agency. 3. Copy of Resolution 5281 and Cooperation Agreement Between the City of Huntington Beach and the Redevelopment Agency. 4. Redevelopment Law (Health and Safety Code Sections 33114 and 33114.5). PEC/DLB/TA:sar 1780r 4 'tiy FIRST AMENDMENT TO COOPERATION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE REDEVELOPMENT AGENCY DATED JUNE 20, 1983 That certain Cooperation Agreement between the City of Huntington Beach and the Redevelopment Agency dated June 20, 1983 shall be amended to modify paragraph (a) of Section 1 to read as follows: a. Members of the City Council of the City of Huntington Beach shall serve as the Huntington Beach Redevelopment Agency and, as such, shall be eligible for reimbursement by the Agency for actual and necessary expenses incurred in carrying out that function and for direct compensation as provided for under Sections 33114 and 33114.5 of the California Community Redevelopment Law. The amount of such compensation shall be thirty dollars ($30) per member for each meeting of the Agency attended by the member. No member shall receive compensation for attending more than four meetings of the Agency during any calendar month. IN WITNESS WHEREOF, THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY have caused this Agreement to be duly executed in their behalf and the City seal to be hereunto affixed and attested, all as of the date and year first above written. CITY OF HUNTINGTON BEACH ATTEST: City/Agency Clerk INITIATED AND APPROVED: City Administrator/ Executive Director #38411 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By n APPROVED AS TO FORM: City Attor ey Agency Conse f/z-PAI 17 2. COOPERATION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE REDEVELOPMENT AGENCY THIS AGREEMENT, entered into this 0 day of , 1983, by and between the CITY OF HUNTINGTON BEACH, a mu icipal corporation (hereinafter referred to as the "CITY"), and the HUNTINGTON BEACH REDEVELOPMENT AGENCY, a public body corporate and -politic, duly created and functioning under the laws of the State of California (hereinafter referred to as the "AGENCY"), in entering into and performing this Agreement, each acting under and pursuant to the California Community Redevelopment Law and each functioning as an administrative arm of the State of California in effectuating the purposes of the California Community Redevelopment Law. W I T N E S S E T H: WHEREAS, the Agency, in accordance with and pursuant to the Community Redevelopment Law of the State of California, is under- taking redevelopment projects (hereinafter referred to as the "Pro- jects"); and WHEREAS, the Projects involve undertakings and activities by the Agency in the Project Areas for the elimination and prevention of blight and for the development of sound and economically productive use of the Project Areas; and WHEREAS, in order for the Agency to effectuate the Projects, certain assistance by the City is required; and WHEREAS, it is necessary and in the sound interest of the community and otherwise beneficial and advantageous for the City to provide to the Agency certain assistance and to otherwise cooperate with the Agency in carrying out the )Projects in effectuation of State policy specified in the California Community Redevelopment Law to the end that deleterious conditions in the Project Areas be re- moved and that the Project Areas be renewed in accordance with sound practical planning objectives, which renewal will result in in- creases of tax revenues from the Project Areas and contribute materially to the well-being, progress and development of the community as a whole; NOW, THEREFORE, pursuant to the provisions of the Community Redevelopment Law of the State of California, and in consideration of the benefits to accrue to the City, the community and the citizens thereof from said Projects, and of the convenants hereinafter set forth, the CITY OF HUNTINGTON BEACH and the HUNTINGTON BEACH RE- DEVELOPMENT AGENCY do agree as follows: Section 1: Staff services shall be provided or furnished to the Agency by the City as hereinafter set forth: a. Members of the City -Council of the City of Huntington Beach shall serve collectively as the Huntington Beach Redevelop- ment Agency and, as such, shall be eligible for reimbursement by the Agency for actual and necessary expenses incurred in carrying out that function and for direct compensation as provided for under Sections 33114 and 33114.5 of the Cali- fornia Community Redevelopment Law. The amount of such com- pensation shall be thirty dollars ($34) per member for each meeting of the Agency devoted to Redevelopment activities and attended by the member, so long as these meetings are not conducted in conjunction with the regularly schededuled meetings of the City Council. No member shall receive com- pensation for attending nore than four meetings of the Agency during any calendar month. b. The City shall furnish the Agency the services of the City Administrator to act as Chief Executive Officer for the Agency, and will furnish such other supporting administrative and technical staff services as may from time -to -time be de- termined by the Chief Executive Officer and approved by the Agency and the City as necessary for the expeditious perfor- mance of Agency business. C. The City shall furnish to the Agency the services of the Department of Administrative Services to carry out the ac- counting, disbursement and audit of funds functioning as may be required for the efficient performance of Agency functions. -2- d. The Agency shall reimburse to the City the costs of such staff ser- vices provided. Reimbursement will include the Agency's pro-rata shar4 of staff salaries and all employee fringe benefits. e. The Agency shall reimburse to the City such other staff service -relate( expenses as may from time -to -time be deemed necessary and appropriate, which expenses may include, but need not be limited to, such items as travel, materials and equipment costs. f. The City shall periodically, not less than annually,submit to the Agency a statement of the costs incurred by the City in providing the services and facilities pursuant to this agreement. Said statement may include a proration of the City's administrative and salary expenses attributable to the services of the City officials, employees, and de- partments rendered on behalf of the Agency. g. A monthly financial status report shall be prepared for Agency review on an ongoing basis. Section 2: The City and the Agency shall from time -to -time enter into operative agreements to implement the provisions of this Cooperation Agreement. Section 3: Other administrative and/or technical services shall be pro- vided or furnished to the Agency as hereinafter set forth: a. As from time -to -time it may be determined or advantageous, the City agrees to construct or cause to be constructed such public improve- ments or facilities as may be required under provisions of the Re- development Plans or as may be necessitated by requirements of a proposed development or reuse within the Project Areas. b. The Agency agrees that the cost of such improvements or facilities shall be advanced by the Agency to the City or the City shall be reimbursed by the Agency as necessary for such contract or other payments as may accrue for the construction thereof as set forth in an appropriate Operative Agreement and subject to compliance with Health and Safety Code Section 33445 if applicable. Section 4: The City agrees that at no cost or expense to the Agency, and upon the Agency's request, the City will accomplish or cause to be accomplished the vacating of all streets, roads, alleys and other public ways, to be eliminated in preparing the Project Areas for its new uses, in accordance with, or as subsequently determined necessary in order to carry out the purposes of the Redevelopment Plans. -3- The City agrees to convey or cause to be conveyed to the Agency, at a cost no greater than fair -market value, any and all land and interests in land in the Project Areas owned by the City for which it is necessary to the accomplishment of the purposes of the Redevelopment Plans that such land be acquired by the Agency. Conveyance of such land shall be made within a reasonable time in accordance with applicable State laws and/or local regulations and after request therefor by the Agency in order to facilitate carrying out the Redevelopment Plans. Section 5: The Agency agrees, with respect to those lands in areas designated by the Redevelopment Plans or to be designated pursuant to the Redevelopment Plans for reuse as streets, roads, alleys, sidewalks and other public ways, to dedicate or grant in fee such land for street or other.public purposes. The City agrees that it will, within a reasonable time after request therefor by the Agency, accept the dedication thereof for street and other public purposes in accordance with the Redevelopment Plans. The City further agrees to accept or cause to be accepted all grants or easements necessary for the reuse of the Project Areas in accordance with the Redevelopment Plans. Section 6: The City agrees that, after the City's acceptance thereof, it shall maintain in good repair and working order, or cause to be so maintained, all streets, roads, alleys, sidewalks, storm sewers, water mains and other public improvements in the Project Areas constructed, installed or reconstructed, either by the City or the Agency for such time as said improvements are so used by the public in accordance with the maintenance policies of the City. The City further agrees that it will furnish, or cause to be furnished, at its own expense, or through an appropriate lighting district, the necessary electric current adequately and properly to light all street lights that may be installed in public streets, alleys or other public ways pursuant to the Redevelopment Plans or, in the future, in the Project Areas. The City further agrees that it will furnish, or cause to be furnished, all necessary and proper municipal services for so long as the same shall be needed as required by the Project Areas and the inhabitants thereof, in accordance with its new uses as specified -4- by the Redevelopment Plans. Section 7: The City agrees with respect to each and every public facility to be provided or furnished by it under this Agree- ment, that such public facilities shall be open without regard to race, color, religion, sex, or national origin to all occupants of the Redevelopment Project Areas after renewal and, if such facilities are provided on project land acquired from the Agency, to all others. Section 8: If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of State Redevelopment Law and other applicable State laws and any applicable Federal law. Section 9: The obligations of the Agency hereunder shall consti- tute an indebtedness of the Agency in the meaning of Article 6, Chapter 6 of the California Community Redevelopment Law. IN WITNESS WHEREOF, THE CITY OF HUNTINGTON BEACH AND THE HUN- TINGTON BEACH REDEVELOPMENT AGENCY have caused this Agreement to be duly executed in their behalf and the City seal to be hereunto affixed and attested, all as of the date and year first above written. CITY OF HUNTINGTON BEACH Byoo `' Mayor ATTEST: City Agency Clerk INITATED AND APPROVED AS TO CONTENT: Director, Business & Industrial Enterprise REDEVELOPMENT AGENCY By Chairman APPROVED AS TO FORM: S al d ve opment Counsel -5- Yr APPROVED AS TO FORM: F,7,—c,ity/Agenc y Attorney APPROVED: 71 Chief Execut a Officer