HomeMy WebLinkAboutSA AG PKT 2012-02-27 #2SUCCESSOR AGENCY TO THE SEAL BEACH
REDEVELOPMENT AGENCY
AGENDA STAFF REPORT
DATE: February 27, 2012
TO: Honorable Chair and Board Members
THRU: Jill R. Ingram, Executive Director
FROM: Mark H. Persico, AICP, Director of Development Services
SUBJECT: APPROVE THE DRAFT INITIAL RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (ROPS)
SUMMARY OF REQUEST:
Staff recommends that the Successor Agency to the Seal Beach Redevelopment
Agency adopt Resolution No. SA 12 -04 approving the draft initial recognized
obligation payment schedule (ROPS).
BACKGROUND:
AB X1 26 ( "AB 26 ") and AB X1 27 ( "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. In California Redevelopment Association, et al. v.
Matosantos, et al. (Case No. S194861), the California 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, the Seal
Beach Redevelopment Agency was dissolved. In January, the Seal Beach City
Council designated the City as the successor entity to the former redevelopment
agency. The Successor Agency is a distinct and separate legal entity from the
City. Successor agencies have all the authority, rights, powers, duties, and
obligations previously vested with the former redevelopment agencies under the
Community Redevelopment Law except for those that were repealed, restricted,
or revised by AB 26.
Agenda Item 2
Pursuant to Health and Safety Code Section 34177, successor agencies are
required to prepare a draft initial Recognized Obligation Payment Schedule by
March 1, 2012.
ENVIRONMENTAL IMPACT:
There will be no new environmental impact associated with adoption of the
attached Resolution.
LEGAL ANALYSIS:
General Counsel has reviewed and approved as to form.
FINANCIAL IMPACT:
Preparation of a draft initial Recognized Obligation Payment Schedule is in
furtherance of allowing the Successor Agency to pay enforceable obligations of
the former redevelopment agency.
RECOMMENDATION:
Staff recommends that the Successor Agency to the Seal Beach Redevelopment
Agency adopt Resolution No. SA 12 -04 approving the draft initial recognized
obligation payment schedule (ROPS).
SUBMITTED BY:
ark H. Pers'co, AICP
Director of Development Services
Attachments:
A. Resolution No. SA 12 -04
Page 2
NOTED AND APPROVED:
L
. Ingram, Exec- Director
RESOLUTION NUMBER SA 12 -04
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE SEAL BEACH
REDEVELOPMENT AGENCY ADOPTING A DRAFT INITIAL
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177
AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH
RECITALS
A. AB X1 26 and AB X1 27 were signed by the Governor of California
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 ").
B. The California Redevelopment Association and League of
California Cities filed a lawsuit in the Supreme Court of California (Califomia
Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861))
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.
C. 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.
D. As a result of the Supreme Court's decision, the Seal Beach
Redevelopment Agency ( "Redevelopment Agency "), a redevelopment agency in
the City of Seal Beach (the "City"), created pursuant to the Redevelopment Law,
was dissolved pursuant to Part 1.85 on February 1, 2012.
E. By its Resolution No. 6211, adopted on January 9, 2012, the City
Council of the City made an election to serve as the successor agency for the
Redevelopment Agency under Part 1.85 (the "Successor Agency ").
F. By its Resolution No. 6222, adopted on February 13, 2012, the City
Council, acting as the governing board for 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.
G. Health and Safety Code Section 34177(1), as modified by the
California Supreme Court, provides that by March 1, 2012, the Successor
Agency must prepare a draft initial Recognized Obligation Payment Schedule for
the enforceable obligations of the former Redevelopment Agency, in accordance
with the requirements of paragraph (I). The draft schedule must be reviewed and
certified, as to its accuracy, by an external auditor designated at the county
auditor - controller's direction pursuant to Health and Safety Code Section 34182.
The certified Recognized Obligation Payment Schedule must be submitted to
and approved by the oversight board. Finally, after approval by the oversight
board, a copy of the approved Recognized Obligation Payment Schedule must
be submitted to the county auditor - controller, the State Controller and the State
Department of Finance ( "DOF "), and be posted on the Successor Agency's web
site. The first Recognized Obligation Payment Schedule submitted to the State
Resolution Number SA 12 -04
Controller and the DOF will be for payments for the period of January 1, 2012 to
June 30, 2012, inclusive.
H. Accordingly, the Board desires to adopt this Resolution approving a
draft initial Recognized Obligation Payment Schedule in accordance with
Paragraph G.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO 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 34177.
Section 3. The Board hereby approves the draft initial Recognized Obligation
Payment Schedule substantially in the form attached as Exhibit A to this
Resolution and incorporated herein by reference (the "ROPS"). The Executive
Director of the Successor Agency, in consultation with the Successor Agency's
legal counsel, may modify the ROPS as the Executive Director or the Successor
Agency's legal counsel deems necessary or advisable.
Section 4. The Board hereby designates the Development Services Director,
Mark Persico, as the official to whom the DOF may make requests for review in
connection with the ROPS and who shall provide the DOF with the telephone
number and e-mail contact information for the purpose of communicating with the
DOF.
Section 5. The officers and staff of the Successor 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
submitting the certified Recognized Obligation Payment Schedule to the
oversight board for approval, and any such actions previously taken by such
officers are hereby ratified and confirmed.
PASSED, APPROVED and ADOPTED by the Successor Agency to the Seal
Beach Redevelopment Agency at a special meeting held on the 27th day
of February , 2012 by the following vote:
AYES: Board Members
NOES: Board Members
ABSENT: Board Members
ABSTAIN: Board Members
ATTEST:
Secretary/City Clerk
Mayor /Chair
Resolution Number SA 12 -04
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 SA 12 -04
on file in the office of the City Clerk, passed, approved, and adopted by the
Successor Agency to the Seal Beach Redevelopment Agency at a special
meeting held on the 27th day of February , 2012.
Secretary/City Clerk
City of Seal Beach
Project Area(s)
Sucessor Agency of the City of Seal Bach
Resolution No. SAl2 -04 - EXHIBIT "A"
Initial Draft - Recognized Obligation Payment Schedule
(Adopted February 27, 2012)
Per AB 26 - Section 34177(I)(1) and 34177 (I)(3)
Riverfront Project Area
Project Name / Debt
Obligation
Payee
Description
Funding Source
Total Outstanding
Debt or Obllaation
Total Due During
Fiscal Year
Jan 2012
Feb 2012
Mar 2012
April 2012
May 2012
June 2012
Total
1)
2000 Tax Allocation
Bond A
Bank of New York
Bond issue
RPTTF
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
RPTTF
486,763.00
61,150 00
10,062.50
$ 10,062.50
3)
Contract for legal
services
Richards Watson
Gershon
Legal counsel
RPTTF /ACA/LMI
1,872,000.00
125,000.00
20,000.00
15,000.00
10,400.00
10,40000
10,400.00
10,400.00
$ 76,600.00
4)
Sewer Easement
Payment
City of Seal Beach
Acquisition of sewer easement
Reserve balance
/ RPTTF
1,346,795.33
$ -
5)
Contract for consulting
services
Civic Stone
CDBG and mobilehome park
construction
LMI & RPTTF
105,000.00
105,000 00
12,500.00
12,500 00
12,500 00
12,500.00
$ 50,000.00
6)
Contract for consulting
services
Rosenow Spevacek
Group
mobilehome park monitoring
LMI & RPTTF
8,500.00
6,500.00
600.00
600.00
600 00
800.00
$ 2,400.00
7)
Low Mod / Rental
Assistance
Seal Beach Shores
Rental Assistance Agreement
LMI &RPTTF
1,620,000.00
180,000.00
180,000.00
$ 180,000.00
8)
Statutory Pass -
Through
Tax Entities
SB 211 requires agencies to
pass -tax Increment to taxing
RPTTF
149,787.00
149,787.00
149,787.00
$ 149,787.00
9)
Legal challenge to AB
26 & 27
Califomia
Redevelopment Agency
Dues/pro-rated legal costs
RPTTF
800.00
800 00
400 00
400 00
$ 800.00
10)
Marina Park Grant
Application
Carrier Johnson
Park design for Prop 84 grant
application
RPTTF
33,700.00
33,700 00
8,000.00
$ 8,000.00
11)
Seal Beach Shores
Trailer Park
Veridian Construction
Improvements to individual
mobile home
LMI
45,000.00
45,000.00
5,000.00
5,000.00
5,000.00
$ 15,000 00
12)
Seal Beach Shores
Trailer Park
Eric Wilkerson & Co. .
Improvements to Individual
mobilehome
LMI
33,000 00
33,000.00
4,700.00
4,700 00
4,700.00
4,700 00
4,700.00
4,700.00
$ 28,200.00
$ 1,400.00
$ -
13)
Seal Beach Shores
Trailer Part
Kilter Termite
Improvements to Individual
mobilehome
LMI
1,40000
1,400.00
1,400.00
14)
First Street Parkland
Bay City Partners, LLC
Acquisition of public parkland
Reserve balance
/ RPTTF
1,100,000.00
0.00
15)
Contract for consulting
services
Donald Parker
Financial advisor services
Financial advisor services
RPTTF /ACA
RPTTF
4,900.00
1,000.00
4,900.00
1,000.00
1,250.00
1,000 00
1,250.00
$ 2,500.00
$ 1,000 00
16)
Contract for consulting
services
Urban Futures
17)
Zoeter Field
City National Bank
Capital Improvement lease
payment
RPTTF
59,154.00
29,000.00
11,600.00
5,900.00
$ 17,500.00
18)
2000 Tax Allocation
Bond A
Bank of New York
Trustee administration costs
RPTTF
31,529.35
1,823.20
1,823.20
$ 1,623.20
19)
2000 Tax Allocation
Bond B
Bank of New York
Trustee administration costs
RPTTF
31,529.35
1,823.20
1,823.20
$ 1,823.20
20)
Seal Beach Shores
Trailer Park
Kill -N -Bugs
Improvements to individual
mobilehome
LMI
2,200.00
2,200.00
2,200.00
$ 2,200.00
21)
Board Members
meeting
RDA Officers
Administrative costs
Reserve Balance
0 00
2,400.00
400.00
$ 400.00
22)
2000 Tax Allocation
Bond A
Wildan Financial
Services
Bond fiscal services
RPTTF
35,278 71
2,000.00
2,000.00
$ 2,000.00
23)
2000 Tex Allocation
Bond B
Wildan Financial
Services
Bond fiscal services
RPTTF
35,278.71
2,500.00
500.00
2,000.00
$ 2,500.00
24)
Storm Drain
Improvements
Contractors
10 Year Stone Drain
Improvements in Project Area
Reserve balance
/ RPTTF
1,800,000 00
1,800,000 00
1,800,000.00
$ 1,800,000.00
25)
Seal Beach Shores
Trailer Park
ZZ Construction
Improvements to individual
mobile home
LMI
1,615.00
1,615 00
1,615.00
$ 1,615.00
26)
Seal Beach Shores
Trailer Park
Terry Brennon
Improvements to individual
mobile home- Refund
LMI
215 00
215.00
215.00
$ 215.00
27)
Contract for audit
services
Lance Soll & Lunghard
Annual audit
RPTTF /ACA
9,000.00
600.00
600 00
$ 600 00
28)
Sucessor Agency Staff
Sucessor Agency staff
Administrative costs
RPTTf /ACA
170,700.00
17,000.00
3,400 00
3,400.00
3,400.00
3,400 00
3,400 00
$ 17,000 00
28)
Sucessor Agency Staff
Sucessor Agency staff
Project costs
RPTTf /ACA
102,000 00
102,000.00
20,400.00
20,400.00
20,400.00
20,400.00
20,400 00
$ 102,000 00
$ 15,793,764.45
$ 3,373,728 40
$ 402,983.40
$ 64,680.00
$ 180,942.50
$ 69,962 50
$ 39,300 00
$ 1,839,500.00
$ 2,597,368 40
• All totals due during fiscal year and payment amounts are projected.
*Funding sources from the successor agency: (For fiscal 2011-12 only, references to RPTTF could also mean tax Increment allocated to the Agency prior to February 1, 2012)
RPTTF - Redevelopment Property Tax Fund ACA - Successor Agency Administrative Cost Allowance
LMI - Low and Moderate Income Housing Fund