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Home My WebLink AboutCC AG PKT 2012-01-23 #FDATE: January 23, 2012 TO: Honorable Chair and Agency Members THRU: Jill R. Ingram, Executive Director FROM: Mark H. Persico, AICP, Director of Development Services SUMMARY OF REQUEST: BACKGROUND: REDEVELOPMENT AGENCY AGENDA STAFF REPORT Agenda Item F SUBJECT: ADOPTION OF RESOLUTION NO. 12 -01 AMENDING THE ENFORCEABLE OBLIGATION SCHEDULE Staff recommends that the Agency adopt Resolution No. 12 -01 amending the enforceable obligation schedule. This agenda item is to address an outcome of the California Supreme Court's decision in California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861), the litigation challenging AB X1 26 ( "AB 26) and AB X1 27 ( "AB 27 "). AB 26 and AB 27, which were signed by the Governor of California on June, 29, 2011, added Parts 1.8 and 1.85 to the Community Redevelopment Law. The Supreme Court largely upheld AB 26, invalidated AB 27, and held that AB 26 may be severed from AB 27 and enforced independently. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 (the dissolution provisions) arising before May 1, 2012 to take effect four months later. As a result of the Supreme Court's decision, on February 1, 2012, all redevelopment agencies are dissolved and successor agencies are designated as successor entities to the former redevelopment agencies. Pursuant to Health and Safety Code Section 34169(a), until successor agencies are authorized, redevelopment agencies must continue to make all scheduled payments for enforceable obligations as defined in Health and Safety Code Section 34167(a). Pursuant to Health and Safety Code Section 34167(h), redevelopment agencies shall not make a payment unless it is listed in an adopted enforceable obligation payment schedule ( "EOPS "), other than payments required to meet obligations with respect to bonded indebtedness. The Redevelopment Agency previously adopted an EOPS. In accordance with Health and Safety Code Section 34169(g), the original EOPS only lists payments obligated to be made, by month, through December 2011. Since the Agency will not be dissolved until February 1, 2012, staff recommends that the Agency adopt the attached Resolution to amend the EOPS to include payments coming due after December 2011. Subsequently, the City, as successor agency, will consider adoption of the Agency's EOPS as the successor agency's EOPS (with any appropriate modifications), and the successor agency will pay enforceable obligations pursuant to the EOPS until such time as a recognized obligation schedule becomes operative. FISCAL IMPACT: Amendment of the EOPS will authorize the Agency to pay its enforceable obligations after December 31, 2011. ENVIRONMENTAL IMPACT: There will be no new environmental impact associated with adoption of the attached resolution. LEGAL ANALYSIS: Agency Counsel has reviewed and approved as to form. RECOMMENDATION: Staff recommends that the Agency adopt Resolution No. 12 -01, amending the EOPS. SUBMITTED BY: Ak, r aglIMP Mirk H. Persico, AICP Director of Development Services Attachments: A. Resolution No. 12 -01 Page 2 NOTED AND APPROVED: R. Ingram, E ve Director RESOLUTION NUMBER 12 -01 A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY APPROVING AMENDMENTS TO THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND CERTAIN RELATED ACTIONS 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. C. AB X1 26 and ABX1 27 were 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 Califomia Health and Safety Code. D. 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. S194861)) alleging that AB X1 26 and AB X1 27 are unconstitutional. On August 11, 2011, the Supreme Court issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a partial stay of AB X1 26 and AB X1 27. E. 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. F. 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. The Supreme Court did not revise the effective dates or deadline for performance of obligations in Part 1.8. G. As a result of the Supreme Court's decision, on February 1, 2012, all redevelopment agencies are dissolved and successor agencies are designated as successor entities to the former redevelopment agencies. Pursuant to Health and Safety Code Section 34169, until successor agencies are authorized, redevelopment agencies must continue to make all scheduled payments for enforceable obligations as defined in Health and Safety Code Section 34167(a). Pursuant to Health and Safety Code Section 34167, redevelopment agencies 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. H. The Agency adopted Resolution No. 11 -12 on September 12, 2011, adopting an Enforceable Obligation Payment Schedule. On September 26, 2011, the Agency adopted Resolution No. 11 -14 amending the Enforceable Obligation Payment Schedule. The Enforceable Obligation Schedule, as previously amended, is attached hereto as Exhibit A and incorporated herein by reference (the "Original EOPS "). In accordance with Health and Safety Code Section 34169, the Original EOPS only lists payments obligated to be made, by Resolution Number 12 -01 month, through December 2011. Accordingly, the Agency desires to adopt this Resolution to amend the Original EOPS to include payments obligated to be made after December 31, 2011. I. The amendments to the Original EOPS are set forth on Exhibit B attached to this Resolution and incorporated herein by reference (the "Exhibits "). 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. The Agency hereby adopts the Amendments. The Original EOPS, as amended by the Amendments, shall constitute the EOPS of the Agency. Section 3. The Agency Secretary is hereby authorized and directed to post the Enforceable Obligation Payment Schedule on the City's Internet Web site. Section 4. Prior to dissolution, the Agency may amend the EOPS from time to time at any public meeting of the Agency. Any such further amendments shall be posted to the City Internet Web site. Section 5. The Agency Secretary is hereby authorized and directed to transmit a copy of this Resolution, including the Exhibits, by mail or electronic means to the County Auditor - Controller, the State Controller, and the California Department of Finance. A notification providing the Internet Web site location of the posted copy of this Resolution will suffice. Section 6. The officers and staff of the Agency are herby 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 Amendments to the California Department of Finance and the State Controller, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. Section 7. The Agency hereby affirms the designation of Mark H. Persico, Director of Development Services, as the Agency official to whom the Califomia Department of Finance may make requests for review in connection with the Amendments. Section 8. The adoption of this Resolution is not intended to and shall not constitute a wavier by the Agency of any rights the Agency may have to challenge the legality of all or any portion of AB X1 26 through administrative or judicial proceedings. Section 9. 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)). Resolution Number 12 -01 PASSED, APPROVED and ADOPTED by the Seal Beach Redevelopment Agency at a regular meeting held on the 23rd day of January , 2012 by the following vote: AYES: Agency Members NOES: Agency Members ABSENT: Agency Members ABSTAIN: Agency Members 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 12 -01 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 23rd day of January 2012. Secretary/City Clerk Chair Name of Redevelopment Agency: Redevelopment Agency of the City of Seal Beach Project Area(s) Riverfront Project Area RDA - Res #11 -14 EOPS Amendment #1 (Exhibit A) AMENDED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE ADDING LINES 9 -16 Per AB 26 - Section 34167 and 34169 ( ") Page 1 of 1 Project Name / Debt Obligation Payee Description Total Outstanding Debt or Obligation Total Due During Fiscal Year Payments by month Aug" Sept Oct Nov Dec Total 1) 2000 Tax Allocation Bond A Bank of New York Bond issue 5,185,000 00 663,315.00 541,372.50 $ 541 372.50 2) 2000 Tax Allocation Bond B Bank of New York Bond issue 390,000.00 63,200.00 51,087.50 $ 51 087.50 3) Contract for legal services Richards Watson Gershon Legal counsel 125,000.00 10,400.00 10,400.00 10,400.00 10,400.00 $ 41 600.00 4) Contract for consulting services Civic Stone CDBG and mobilehome park construction 150,000.00 12,500.00 12,500.00 12,500.00 12,500 00 $ 50,000.00 5) Contract for consulting services Rosenow Spevacek Group Bond and mobilehome park monitonng 3,500.00 400.00 400.00 400.00 400.00 $ 1,600 00 6) Low Mod / Rental Assistance Seal Beach Shores Rental Assistance Agreement 180,000.00 $ - 7) Affordable Housing Fund (LMI) LMI Fund The Agency deposits 20% of tax Increment 446,800 00 $ - 8) Statutory Pass - Through Tax Entities SB 211 requires agencies to pass -tax increment to taxing entities 149,787.00 $ - 9) Legal challenge to AB 26 & 27 California Redevelopment Agency Association Dues/pro-rated legal costs 800.00 400 00 400.00 $ 800.00 10) Marina Park Grant Application Carrier Johnson Park design for Prop 84 grant application 86,000.00 7,500.00 2,300.00 $ 9,800.00 11) Seal Beach Shores Trailer Park Veridian Construction Improvements to individual mobilehome 35,000.00 7,200.00 7,900.00 7,800.00 $ 22,900.00 12) Seal Beach Shores Trailer Park Gutter Masters Improvements to individual mobilehome 435.00 435.00 $ 435.00 13) Seal Beach Shores Trailer Park Pike Stair Company Improvements to individual mobilehome 13,500.00 13,500.00 $ 13,500.00 14) Seal Beach Shores Trailer Park Orange County Fence Improvements to individual mobilehome 1,000.00 1,000.00 $ 1,000 00 15) Seal Beach Shores Trailer Park Eric Wilkerson & Co. Improvements to individual mobilehome 35,000 00 9,500 00 9,500.00 9,500.00 $ 28,500.00 16) Seal Beach Shores Trailer Park National Tree & Landscape Improvements to individual mobilehome 1,050.00 1,050.00 17) $ - 18) $ - 19) $ - Totals - This Page Grand total - All Pages $ 5,575 000 00 $ 1,954,387.00 $ - $ 579,807 50 $ 106,687.50 $ 44,350.00 $ 32,800.00 $ 762,595 00 $ 5 575,000.00 $ 1,954,387.00 $ 579,807.50 $ 106 687.50 I $ 44,350 00 $ 32 800.00 $ 762,595.00 Name of Redevelopment Agency: Redevelopment Agency of the City of Seal Beach Project Area(s) Riverfront Project Area RDA - Res #11 -14 EOPS Amendment #1 (Exhibit A) AMENDED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE ADDING LINES 9 -16 Per AB 26 - Section 34167 and 34169 ( ") Page 1 of 1 Name of Redevelopment Agency: Project Area(s) Redevelopment Agency of the City of Seal Beach Enforceable Obligation Payment Scghedule Per AB 26 - Section 34167 and 34169 Riverfront Project Area Project Name / Debt Obligation Payee Description Source of Payment Total Outstanding Debt or Obligation Total Due During Fiscal Year Jan 2012 Feb 2012 Mar 2012 April 2012 May 2012 June 2012 July 2012 Total 1) 2000 Tax Allocation Bond A Bank of New York Bond issue Tax Increment 6,708,619.00 663,315.00 121,942.50 $ 121,942.50 2) 2000 Tax Allocation Bond B Bank of New York Bond issue Tax Increment 486,763.00 61,150.00 10,062.50 $ 10 062.50 3) Contract for legal services Richards Watson Gershon Legal counsel Tax Increment 125,000.00 10,400.00 10,400.00 10,400 00 10,400.00 10,400.00 10,400.00 10,400 00 $ 72,800.00 $ 50,000.00 $ 2 800 00 4) Contract for consulting services Civic Stone CDBG and mobilehome park construction Tax Increment 50,000.00 12,500.00 12,500 00 12,500.00 12,500.00 0.00 0.00 0.00 5) Contract for consulting services Rosenow Spevacek Group Bond and mobilehome park monitoring Tax Increment 3,500.00 400 00 400.00 400.00 400.00 400.00 400 00 400.00 6) Low Mod / Rental Assistance Seal Beach Shores Rental Assistance Agreement The Agency deposits 20% of tax Increment Tax Increment Tax Increment 180,000.00 446,800.00 180,000.00 $ 180,000.00 446,800.00 7) Affordable Housing Fund (LMI) LMI Fund 8) Statutory Pass - Through Tax Entities SB 211 requires agencies to pass -tax increment to taxing Tax Increment 149,787.00 149,787.00 $ 149,787 00 9) Legal challenge to AB 26 & 27 California Redevelopment Agency Dues /pro -rated legal costs Tax Increment 800.00 400 00 400.00 $ 800.00 10) Marina Park Grant Application Carrier Johnson Park design for Prop 84 grant application Tax Increment 8,000 00 8,000.00 $ 8,000 00 11) Seal Beach Shores Trailer Park Veridian Construction Improvements to individual mobilehome Tax Increment 20,000.00 2,800.00 2,800.00 2,800.00 2,800.00 2,800.00 2,800.00 2,800 00 $ 19,600 00 12) Seal Beach Shores Trailer Park Eric Wilkerson & Co. Improvements to individual mobilehome Tax Increment 33,000.00 4,700.00 4,700.00 4,700 00 4,700.00 4,700.00 4,700.00 4,700.00 $ 32,900.00 $ 1,400.00 13) Seal Beach Shores Trailer Park Kilter Termite Improvements to individual mobilehome Tax Increment 1,400.00 1,400.00 14) Sewer Easement Payment City of Seal Beach Acquisition of sewer easement Tax Increment 1,346,795.33 0.00 448,931.78 $ 448,931 78 15) Contract for consulting services Donald Parker Financial advisor services Tax Increment 2,500.00 1,250.00 1,250.00 $ 2,500.00 16) Contract for consulting services Urban Futures Financial advisor services Tax Increment 1,000 00 1,000.00 $ 1,000.00 17) Zoeter Field City National Bank Capital Improvement lease payment Tax Increment 59,154 00 29,400 00 11,800.00 5,900.00 5,900 00 $ 23,600 00 18) First Street Parkland Bay City Partners, LLC Acquisition of public parkland Tax Increment 1,100,000.00 0.00 $ 1,100,000.00 Grand Total $ 9,701,331.33 $ 1,775,652.00 $ 384,437.00 $32,050.00 $152,742.50 $ 46,762.50 $18,700.00 $ 18,300 00 $473,131.78 $ 2,672,923 78