City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the Board of Directors of the Successor Agency to the Culver City
Redevelopment Agency (Successor Agency) adopt a resolution authorizing Chief
Financial Officer Jeff Muir and his designated representative Treasury Division
Manager Nagam Rao to open, deposit and withdraw funds as well as make account
changes to the State Local Agency Investment Fund (LAIF) for the Successor
Agency.
BACKGROUND:
Pursuant to AB 1X 26 (AB 26), the Redevelopment Agency Dissolution Bill, the
Culver City Redevelopment Agency (CCRA) was dissolved effective at 12:01 AM on
February 1, 2012. As provided in AB 26, on January 9, 2012, the City Council
adopted Resolution No. 2012-R001affirmatively electing to have the City serve as
the Successor Agency to the Culver City Redevelopment Agency.
The City and the former CCRA both have had general investment accounts with
LAIF as authorized by the City’s and former CCRA’s Investment Policies, in addition
to authority to invest bond proceeds in the same fund.
The Board of Directors at this evening’s meeting considered (and staff
recommended approval of) a resolution which designates the Successor Agency as
a separate legal entity. Based upon this recommended action and advice from the
Meeting Date: 02/06/12 Item Number: C-2
BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE CULVER CITY
REDEVELOPMENT AGENCY AGENDA ITEM: Adoption of a Resolution
Authorizing the Chief Financial Officer and His Designated Representatives to
Deposit and Withdraw Funds as well as Make Account Changes with the State
Local Agency Investment Fund on Behalf of the Successor Agency to the Culver
City Redevelopment Agency.
Contact Person/Dept.:
Jeff Muir, Chief Financial Officer
Phone Number:
(310)253-5865
Fiscal Impact: Yes [] No [x] General Fund: Yes [] No [x]
Public Hearing: [] Action Item: [] Attachments: [x]
Public Notification: Meetings and Agendas – City Council/SA (02/03/12)
Department Approval:
Jeff S. Muir (02/02/12)
Successor Agency Counsel Approval:
Carol Schwab (by H. Baker) (02/02/12)
Chief Financial Officer Approval:
Jeff S. Muir (02/02/12)
Executive Director Approval:
John M. Nachbar (02/03/12) City of Culver City, California
Agenda Item Report
California State Treasurer’s Office, with the dissolution of the CCRA, a new LAIF
account needs to be established in the name of the Successor Agency.
DISCUSSION:
The Local Agency Investment Fund (LAIF) in the State Treasury is requiring the
Successor Agency to authorize the investment of Successor Agency moneys in LAIF
and to designate authorized representatives of the Successor Agency to open and
deposit to, withdraw from and make changes to the Successor Agency LAIF
account.
FISCAL ANALYSIS:
The item presented to the Board of Directors of the Successor Agency does not
create a fiscal impact.
ATTACHMENTS:
1. Proposed Resolution
MOTION:
That the Board of Directors of the Successor Agency to the Culver City
Redevelopment Agency:
Adopt a resolution authorizing the Chief Financial Officer/City Treasurer, and
Treasury Division Manager to open, and deposit to, withdraw from and make
changes to the State Local Agency Investment Fund on behalf of the Successor
Agency to the Culver City Redevelopment Agency.
MEETING DATE: 02106/12
AGENDA ITEM: Adoption of a Resolution Authorizing the Chief
Financial Officer and His Designated Representatives
to Deposit and Withdraw Funds as well as Make
Account Changes with the State Local Agency
Investment Fund on Behalf of the Successor Agency to
the Culver City Redevelopment Agency.
ATTACHMENTS
Pages
1. Proposed Resolution 1-4 I
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RESOLUTION NO. 2012-SA
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE CULVER CITY REDEVELOPMENT
AGENCY AUTHORIZING THE INVESTMENT OF MONEYS IN THE
LOCAL AGENCY INVESTMENT FUND OF THE STATE OF CALIFORNIA
AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH.
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WHEREAS, AB X1 26 and AB X1 27 were signed by the Governor of Californial
on June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety Code)
(the "Redevelopment Law"), including adding Part 1.8 (commencing with Section 34161)
("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85"); and,
WHEREAS, the California Redevelopment Association and League of California
Cities filed a lawsuit in the Supreme Court of California (California Redevelopment
Association, et al. v. Matosantos, et al., Case No. 5194861) alleging that AB X1 26 and AB
X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its opinion in
the Matosantos case largely upholding AB X1 26, invalidating AB X1 27, and holding that AB
X1 26 may be severed from AB X1 27 and enforced independently; and,
WHEREAS, the Supreme Court generally revised the effective dates and
deadlines for performance of obligations in Part 1.85 arising before May 1, 2012, to take effect
four months later; and,
WHEREAS, as a result of the Supreme Court's decision, the Culver City
Redevelopment Agency (CCRA), a redevelopment agency in the City of Culver City, created
pursuant to the Redevelopment Law, was dissolved pursuant to Part 1.85 on February 1,
2012.
WHEREAS, by its Resolution No. 2012-R001, adopted on January 9, 2012, the
City Council made an election to serve as the successor agency to the CCRA under Part 1.85
(the "Successor Agency"); and,
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WHEREAS, by its Resolution No. 2012-SA001, adopted on February 6, 2012,
the Successor Agency, established rules and regulations applicable to the governance and
operation of the Successor Agency, and pursuant to such resolution provided that the
Successor Agency will be governed by a Board of Directors (the "Board") consisting of the
members of the City Council of the City; and,
WHEREAS, pursuant to Chapter 730 of the statutes of 1976, Section 16429.1
was added to the California Government Code to create the Local Agency Investment Fund
("LAIF") in the State Treasury for the deposit of moneys of local agencies for investment by
the State Treasurer; and,
WHEREAS, the City of Culver City and the former CCRA both have had general
investment accounts with LAIF as authorized by the City's and former CCRA's Investment ,
Policies, in addition to authority to invest bond proceeds in the same fund; and,
WHEREAS, the California State Treasurer's Office has advised that with the
dissolution of the CCRA, a new LAIF account needs to be established in the name of the
Successor Agency and authorized representatives of the Successor Agency need to be
designated to open, deposit to, withdraw from and make changes to the Successor Agency
LAIF account; and,
WHEREAS, in response to a request of the State Treasurer's Office, the Board
wishes to adopt this Resolution authorizing the investment of Successor Agency moneys in
LAIF and authorizing certain officers of the Successor Agency to order the deposit or
withdrawal of moneys in LAIF on behalf of the Successor Agency.
NOW, THEREFORE, the Board of Directors of the Successor Agency to the
Culver City Redevelopment Agency DOES HEREBY FIND, DETERMINE, RESOLVE, AND
ORDER AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are a substantive part
of this Resolution.
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SECTION 2. The Board hereby finds that it is in the best interest of the
Successor Agency to open an account, deposit and withdraw moneys in LAIF from time to
time in accordance with the provisions of Section 16429.1 of the California Government Code
for the purpose of investment as stated therein.
SECTION 3. The deposit and withdrawal of the Successor Agency's monies in
LAIF in accordance with the provisions of Section 16429.1 of the California Government Code
from time to time for the purpose of investment as stated therein, and verification by the State
Treasurer's Office of all banking information provided in that regard, are hereby authorized.
SECTION 4. The Executive Director and the Chief Financial Officer of the
Successor Agency, whose signature specimens are set forth in Exhibit A to this Resolution, or
their successors in such offices, are hereby authorized to order the deposit or withdrawal of
monies in LAIF on behalf of the Successor Agency for any account of the Successor Agency
(including accounts maintained by the former Redevelopment Agency which are now
accounts of the Successor Agency).
SECTION 5. The officers of the Successor Agency are hereby authorized and
directed, jointly and severally, to do any and all things, to execute and deliver any additional
instruments which they may deem necessary or advisable in order to effectuate the purposes
of this Resolution and any such actions previously taken by such officers are hereby ratified
and confirmed.
SECTION 6. The Secretary of the Successor Agency is hereby authorized and
directed to submit a certified copy of this Resolution and such forms as may be required to the
Office of the State Treasurer to effectuate the purposes of this Resolution.
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CA -1VL A. SCHWAB, Successor Agency
Counsel
ATTEST:
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APPROVED AND ADOPTED, this day of , 2012.
SECTION 7. This Resolution shall take effect immediately upon its adoption.
MICHEAL O LEARY, CHAIR
Successor Agency to the Culver City
Redevelopment Agency
MARTIN R. COLE, Secretary
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