HomeMy WebLinkAboutRDA AG PKT 2011-09-12 #3REDEVELOPMENT AGENCY
AGENDA STAFF REPORT
DATE: September 12, 2011
TO: Honorable Chair and Board Members
THRU: Jill R. Ingram, Executive Director
FROM: Mark Persico, AICP, Director of Development Services
'v 40Z:
SUBJECT: ADOPTION RESOLUTION NO. 11 -12 APPROVING AN
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
(EOPS)
SUMMARY OF REQUEST:
Staff recommends that the Agency adopt Resolution No. 11 -12 approving an
enforceable obligation payment schedule (EOPS).
BACKGROUND:
AB X1 26, which was signed by the Governor of California on June, 29, 2011,
added Parts 1.8 and 1.85 to the Community Redevelopment Law. Part 1.8
immediately suspends most redevelopment agency activities and, among other
things, prohibits redevelopment agencies from incurring indebtedness or entering
into or modifying contracts. Part 1.85 provides that on October 1, 2011, all
existing redevelopment agencies and redevelopment agency components of
community development agencies are dissolved, and successor agencies are
designated as successor entities to the former redevelopment agencies. Part
1.85 imposes numerous requirements on the successor agencies and subjects
successor agency actions to the review of oversight boards established under
Part 1.85.
AB X1 27 was signed by the Governor concurrently with AB X1 26 and added
Part 1.9 to the Community Redevelopment Law. Part 1.9 establishes an
Alternative Voluntary Redevelopment Program whereby a redevelopment agency
will, notwithstanding Parts 1.8 and 1.85, be authorized to continue to exist and
carry out the provisions of the Community Redevelopment Law. To opt into the
Alternative Voluntary Redevelopment Program, a city must adopt an ordinance
by which the city agrees to make specified annual payments to the county
auditor - controller for allocation to special districts and educational entities.
Agenda Item 3
ANALYSIS:
Part 1.9 provides that if a city council timely opts into the Alternative Voluntary
Redevelopment Program, then the agency will be exempt from the provisions of Parts
1.8 and 1.85. One requirement, set forth in Section 34169 of Part 1.8, is for an agency
to adopt an enforceable obligation payment schedule by August 28th. Section 34167 of
Part 1.8 provides that after August 28th, an agency cannot make a payment (except for
bonds) unless the payment is listed in an adopted enforceable obligation payment
schedule.
Because the City Council adopted an "opt -in" ordinance prior to August 28th, the
Agency was exempt from the requirement to adopt and adhere to an enforceable
obligation payment schedule. However, as discussed below, on account of the modified
stay that was granted by the California Supreme Court in connection with the lawsuit
challenging the constitutionality of AB X1 26 and AB X1 27, Staff now recommends that
the Agency adopt an enforceable obligation payment schedule.
The California Redevelopment Association and League of California Cities (collectively
"CRA ") have filed a lawsuit in the Supreme Court of California alleging that AB X1 26
and AB X1 27 are unconstitutional. On August 11, 2011, the Supreme Court of
California decided to hear the case and set a briefing schedule designed to allow the
Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the
Supreme Court also issued a stay order, which was subsequently modified on August
17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all
of AB X1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2)
(relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a
partial stay of AB X1 26. With respect to AB X1 26, Part 1.85 was stayed in its entirety,
but Part 1.8 (including Health and Safety Code Sections 34167 and 34169) was not
stayed. Accordingly, Staff now recommends that the Agency adopt and adhere to an
enforceable obligation payment schedule ( "EOPS ").
On August 22, 2011, the CRA filed a motion for clarification and modification of the stay
as it relates to cities such as Seal Beach which adopted "opt -in" ordinances before
August 11, 2011. If the motion is granted, Seal Beach would not have to adopt the
EOPS.
The EOPS attached to this report lists all of the Agency's enforceable obligations and
includes certain information about each obligation, including the amount of payments
obligated to be made, by month, through December 2011. As defined in Section 34167,
an "enforceable obligation" includes (A) bonds issued by an agency (including debt
service, reserve set - asides, and any other payments required by the bond documents);
(B) loans incurred for a lawful purpose, including moneys borrowed from the Low and
Moderate Income Housing Fund, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan terms;
(C) payments required by the Federal Government, pre- existing obligations to the State,
or obligations imposed by State law, or legally enforceable payments required in
connection with an agency's employees, including pension payments and
2
unemployment payments; (D) judgments or settlements entered by a court or binding
arbitration decisions; (E) any legally binding and enforceable contract that is not
otherwise void as violating the debt limit or public policy; and (F) contracts necessary for
the administration or operation of an agency to the extent permitted by AB X1 26.
The California Department of Finance (the "DOF ") and the State Controller can require
the Agency to provide them with documents that are associated with the Agency's
enforceable obligations. Any taxing entity, the DOF and the State Controller all will
have standing to file a judicial action to prevent a violation under Part 1.8 and to obtain
injunctive or other appropriate relief.
ENVIRONMENTAL IMPACT:
There will be no new environmental impact associated with any of the decisions outlined
above.
LEGAL ANALYSIS:
Agency Counsel has reviewed and concurred with this report.
FISCAL IMPACT:
None. Adoption of the EOPS will authorize the Agency to pay its enforceable
obligations after its adoption.
RECOMMENDATION:
Staff recommends that the Agency adopt Resolution No. 11 -xx approving an
enforceable obligation payment schedule (EOPS), and authorize the Executive Director
to file a copy with the State Controller's Office, the State Department of Finance and the
County Auditor - Controller.
SUBMITTED BY: NOTED AND APPROVED:
Mark H. Persico, AICP
Director of Development Services
k R. Ingram,
Executive Director
Attachments:
A. Resolution No. 11 -xx
RESOLUTION NUMBER 11 -12
A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT
AGENCY ADOPTING AN ENFORCEABLE OBLIGATION
PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF DIVISION
24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND
TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH
RECITALS:
A. The Seal Beach Redevelopment Agency ( "Agency ") is a
redevelopment agency in the City of Seal Beach ( "City "), created pursuant to the
Community Redevelopment Law (Part 1 (commencing with Section 33000) of
Division 24 of the California Health and Safety Code) (the "Redevelopment
Law ").
B. The City Council of the City (the "City Council ") adopted Ordinance
No. 708, approving and adopting the redevelopment plan for the Riverfront
Project Area, and from time to time, the City Council has amended such
redevelopment plan. The Agency is undertaking a program to redevelop the
Project Area.
C. AB X1 26 was signed by the Governor of California on June 29,
2011, making certain changes to the Redevelopment Law, including adding Part
1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section
34170) to Division 24 of the California Health and Safety Code. Commencing
upon the effectiveness of AB X1 26, AB X1 26 suspends most redevelopment
agency activities and, among other things, prohibits redevelopment agencies
from incurring indebtedness or entering into or modifying contracts. Effective
October 1, 2011, AB X1 26 dissolves all existing redevelopment agencies and
redevelopment agency components of community development agencies,
designates successor agencies to the former redevelopment agencies, imposes
numerous requirements on the successor agencies and subjects successor
agency actions to the review of oversight boards established pursuant to the
provisions of Part 1.85.
D. Health and Safety Code Section 34169, which is set forth in Part
1.8, requires a redevelopment agency to adopt an enforceable obligation
payment schedule within 60 days of the June 29, 2011 effective date of Part 1.8.
The enforceable obligation payment schedule must list all of the obligations that
are enforceable within the meaning of Health and Safety Code Section 34167(d)
and include specific information about each obligation.
E. Health and Safety Code Section 34167(h), which is set forth in Part
1.8, provides that a redevelopment agency shall not make a payment unless it is
listed in an adopted enforceable obligation payment schedule, other than
payments required to meet obligations with respect to bonded indebtedness,
after the enforceable obligation payment schedule is adopted pursuant to Health
and Safety Code Section 34169, or after 60 days from the effective date of Part
1.8 (i.e., August 28, 2011) whichever is sooner.
F. AB X1 27 was signed by the Governor of California on June 29,
2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the
California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary
Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and
Part 1.85, a redevelopment agency will be authorized to continue to exist and
carry out the provisions of the Redevelopment Law upon the City Council's
enactment of an ordinance to comply with Part 1.9. The City Council enacted the
ordinance on August 8, 2011. Pursuant to Health and Safety Code Section
34192, if a city participates in the Alternative Voluntary Redevelopment Program
and complies with all requirements and obligations contained in Part 1.9, the
redevelopment agency in that city will be exempt from Part 1.8 and Part 1.85.
Resolution Number 11 -12
G. The California Redevelopment Association and League of
California Cities have filed a lawsuit in the Supreme Court of California alleging
that AB X1 26 and AB X1 27 are unconstitutional. On August 11, 2011, the
Supreme Court of California decided to hear the case and set a briefing schedule
designed to allow the Supreme Court to decide the case before January 15,
2012. On August 11, 2011, the Supreme Court also issued a stay order, which
was subsequently modified on August 17, 2011. Pursuant to the modified stay
order, the Supreme Court granted a stay of all of AB X1 27 (i.e., Part 1.9), except
for Health and Safety Code Section 34194(b)(2) (relating to the determination of
cities' fiscal year 2011 -12 remittance amounts) and a partial stay of AB X1 26.
With respect to AB X1 26, Part 1.85 was stayed in its entirety, but Part 1.8
(including Health and Safety Code Sections 34167 and 34169) was not stayed.
Accordingly, the Agency desires to adopt an enforceable obligation payment
schedule.
NOW, THEREFORE, THE SEAL BEACH REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a
substantive part of this Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety
Code Section 34169.
Section 3. The Agency hereby adopts the enforceable obligation
payment schedule attached as Exhibit A to this Resolution and incorporated
herein by reference (the "Enforceable Obligation Payment Schedule ").
Section 4. The Agency Secretary is hereby authorized and directed to
post the Enforceable Obligation Payment Schedule on the City's Internet Web
site.
Section 5. The Enforceable Obligation Payment Schedule may be
amended from time to time at any public meeting of the Agency. Amendments
shall be posted to the Internet Web site described in Section 4, above, for at least
three business days before a payment may be made pursuant to an amendment.
Section 6. The Agency Secretary is hereby authorized and directed to
transmit a copy of the Enforceable Obligation Payment Schedule by mail or
electronic means to the County Auditor - Controller, the State Controller, and the
California Department of Finance (the "Department of Finance "). A notification
providing the Internet Web site location of the posted Enforceable Obligation
Payment Schedule and notifications of any amendments will suffice.
Section 7. The officers and staff of the Agency are hereby authorized
and directed, jointly and severally, to do any and all things which they may deem
necessary or advisable to effectuate this Resolution, including providing
documents associated with the Statement of Enforceable Obligations to the
Department of Finance and the State Controller in the manner of their choosing,
and any such actions previously taken by such officers are hereby ratified and
confirmed.
Section 8. The Agency hereby designates the Executive Director as the
official to whom the Department of Finance may make requests for review in
connection with the Enforceable Obligation Payment Schedule and who shall
provide the Department of Finance with the telephone number and e-mail contact
information for the purpose of communicating with the Department of Finance.
Section 9. The adoption of the Enforceable Obligation Payment
Schedule is not intended and shall not constitute a wavier by the Agency of any
Resolution Number 11 -12
rights the Agency may have to challenge the legality of all or any portion of AB
X1 26 or AB X1 27 through administrative or judicial proceedings.
Section 10. At such time as the Agency becomes exempt from Parts 1.8
and 1.85, the Agency shall no longer be bound by the Enforceable Obligation
Payment Schedule.
Section 11. This Resolution has been reviewed with respect to
applicability of the California Environmental Quality Act ( "CEQA "), the State
CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et
seq., hereafter the "Guidelines "), and the Agency's environmental guidelines.
The Agency has determined that this Resolution is not a "project" for purposes of
CEQA, as that term is defined by Guidelines Section 15378, because this
Resolution is an organizational or administrative activity that will not result in a
direct or indirect physical change in the environment. (Guidelines Section
15378(b)(5)).
PASSED, APPROVED and ADOPTED by the Seal Beach Redevelopment
Agency at a regular meeting held on the 12th day of September , 2011 by the
following vote:
AYES: Agency Members
NOES: Agency Members
ABSENT: Agency Members
ABSTAIN: Agency Members
Chairman
ATTEST:
Secretary/City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, Secretary/City Clerk of the City of Seal Beach, do hereby certify
that the foregoing resolution is the original copy of Resolution Number 11 -12
on file in the office of the City Clerk, passed, approved, and adopted by the Seal
Beach City Council at a regular meeting held on the 12th day of September
2011.
Secretary/City Clerk
EXHIBIT A
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Date: September 12, 2011
To: Honorable Mayor and Members of the City Council
Thru: Jill R. Ingram, City Manager
From: Sean P. Crumby, Assistant City Manager /Public Works
SUBJECT: STUDY SESSION - FACILITY MASTER PLAN
OVERVIEW:
The City of Seal Beach owns and operates 37 facilities throughout the City.
Please see attached table for the complete list of facilities.
On June 28, 2004 the City Council adopted the City's first Facility Condition
Assessment Report. The report provided a detailed outline of the City's facilities.
For over six years, staff determined the need to update the findings due to new
building codes and standards.
On June 14, 2010 the City Council awarded a professional services agreement
with Griffin Structures to prepare a Building /Facility Condition Assessment.
Goals of this update have been to:
Provide a report that globally in nature examines all of the City's facilities
and plans for a 20 year capital outlay program;
Update the initial 2004 report with changes from the City's codes and
changes in the laws. Some of these laws include the American with
Disabilities Act and the Uniform Building Code; and
Verify findings of the condition of the pier utilities (compiled in 2009 by
Moffatt and Nichols Engineers).
A City Council Study Session was held on February 28, 2011 to address how this
report should plan for several code compliance issues. Detailed information will
be presented at the September 12th City Council study session.
Copies of the July 2011 Facility Condition Assessment Report are available for public
viewing at the Mary Wilson Library and City Clerk's Office.
Page -2-
List of Facilities
No.*
Property Name Bldg. GSF
I
City Hall
13,000
2
Old City Hall
11,200
3
Police Headquarters
22,000
4
City Yard - Office
3,100
4A
City Yard - Vehicle /Equipment Storage
6,200
4B
City Yard - Vehicle /Equipment Repair
4,900
4C
City Yard - Vehicle /Equipment Garage
4,800
4D
City Yard - Vehicle /Equipment Carport
5,250
4 -Site
City Yard -Site
***
5
Library /Senior Center
28,286
6
Fire Station #44
3,500
7
Seal Beach Pier - Restaurant Building
2,679
8
North Seal Beach Community Center
4,550
9
Marina Community Center / Park
4,600
10
Seal Beach Pier -Old Bait Shop
510
10C
Lifeguard Tower
516
IOD
Safety Building
842
IOE
Lifeguard Headquarters
1,900
10F
Lifeguard Garage
2,250
10H
Seal Beach Pier Restrooms
1,000
13
Beach Facility- Maintenance Building
3,150
13A
Beach Facility- Restaurant Building
1,350
13B
Beach Facility- Storage Bldg.
350
13C
Beach Facility- Restroom Building
850
13D
Beach Parking Lot
***
16
Well & Pump House (Bolsa Chica)
570
17
Well & Pump House (Beverly Manor)
1,040 **
29
Zoeter Building (Day Care)
1,500
29B
Zoeter Bleachers
1,600
37
Tennis Center Club House
2,100
37A
Tennis Center Locker /Shower /Restrooms3,200
37B
Tennis Center Workout Room
1,000
37C
Tennis Center Gate /Site
n/a
38
McGaugh Pool Facility
n/a
39
Seal Beach Pier - Utilities
n/a