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HomeMy WebLinkAboutSA Agenda Packet_06222020SPECIAL SUCCESSOR AGENCY MATTERS NOTICE REGARDING PUBLIC OBSERVATION AND PARTICIPATION IN THE SPECIAL SUCCESSOR AGENCY MATTERS MEETING To comply with Governor Newsom’s Executive Order N-29-20 and the Amended Order and Guidance of the Orange County Health Officer issued March 18,2020 the City of Seal Beach hereby gives notice of the “means by which members of the public may observe the meeting and offer public comment”for the Special Successor Agency Matters meeting on June 22,2020.Due to the need for social distancing and the prohibition on public gatherings set forth in the County Health Officer’s Order,all participation in the above-referenced Meeting will be by teleconference for the Members of the City Council and staff.Because of the unique nature of the emergency there will NOT be a physical meeting location and all public participation will be electronic. PUBLIC COMMENT:Members of the public may submit comments on any item on this Special Successor Agency Matters meeting agenda via email to the City Clerk at gharper@sealbeachca.gov or via the comment icon through the online portal at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting-Videos/Council- Commission-Meetings .All email comments the City Clerk receives before the start of the meeting will be posted on the City website and distributed to City Council.Email comments received after that time will be posted on the City’s website and forwarded to the City Council after the meeting. THIS NOTICE AND ELECTRONIC PARTICIPATION PROVISIONS SET FORTH IN THIS NOTICE ARE PROVIDED PURSUANT TO SECTION 3 OF EXECUTIVE ORDER N-29-20. CALL TO ORDER COUNCIL ROLL CALL PUBLIC COMMUNICATIONS (VIA EMAIL ONLY) At this time members of the public may address the Council regarding the items on this Special Successor Agency Matters meeting agenda.Pursuant to the Brown Act,the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Those members of the public wishing to provide comment are asked to send comments via email to the City Clerk at gharper@sealbeachca.gov or via the comment icon on the City website at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting- Videos/Council-Commission-Meetings before 7 pm on June 22,2020.Comments provided via email will be posted on the City website for review by the public.Any documents for review should be sent to the City Clerk prior to the meeting for distribution. CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A.Approval of Successor Agency Minutes for December 9,2019 -Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on December 9,2019. B.Demands on City Treasury (Fiscal Year 2020)–June 22,2020 -Ratification. C.Redemption of Outstanding Tax Allocation Bonds -That the Governing Board of the Successor Agency adopt Resolution No.SA 20-01,approving the use of bond funds to effect a redemption of outstanding tax allocation bonds and taking related actions. ADJOURNMENT Adjourn the Successor Agency to a date uncertain. Agenda Item A SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE:June 22, 2020 TO:Honorable Chair and Board Members THRU:Jill R. Ingram, Executive Director FROM:Gloria D. Harper, Secretary SUBJECT:Approval of Successor Agency Minutes for December 9, 2019 ________________________________________________________________ SUMMARY OF REQUEST: Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on December 9, 2019. BACKGROUND AND ANALYSIS: This section does not apply to this item. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. Page 2 6 3 7 MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on December 9, 2019. SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, Secretary Jill R. Ingram, Executive Director Prepared by: Dana Engstrom, Deputy City Clerk ATTACHMENTS: A. Minutes Seal Beach, California December 9, 2019 The Successor Agency met at 8:54 p.m. in the City Council Chambers with Chair Moore calling the meeting to order. ROLL CALL Present: Chair Moore Agency Members: Massa-Lavitt, Sustarsic, Kalmick, Varipapa Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Chief Joe Miller, Seal Beach Police Department Chief Joe Bailey, Marine Safety/Lifeguard Department Victoria L. Beatley, Director of Finance/City Treasurer Steve Myrter, P.E., Director of Public Works Steven Fowler, Interim Director of Community Development Gloria D. Harper, City Clerk Dana Engstrom, Deputy City Clerk ORAL COMMUNICATIONS Chair Moore opened oral communications. Speakers: None. Chair Moore declared oral communications closed. CONSENT CALENDAR Member Sustarsic moved, second by Member Kalmick, to approve Items A through C of the recommended actions on the consent calendar as presented. AYES: Massa-Lavitt, Moore, Sustarsic, Varipapa, Kalmick NOES: None ABSENT: None ABSTAIN: None Motion carried A. Approval of Successor Agency Minutes for July 22, 2019 - Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on July 22, 2019. B. Demands on City Treasury (Fiscal Year 2019) – December 9, 2019 - Ratification. C. Recognized Obligation Payment Schedule for Fiscal Year from July 1, 2020 through June 30, 2021 and Related Documents - That the Governing Board of the Successor Agency to the Seal Beach Redevelopment Agency (the “Successor Agency”) adopt Resolution SA 19-03, approving the Recognized Obligation Payment Schedule (“ROPS”) for the period from July 1, 2020 through June 30, 2021 (“ROPS 20-21”) and authorize the Finance Officer to complete the documents. ADJOURNMENT With no objections, Chair Moore adjourned the meeting at 8:55 p.m. to a date uncertain immediately following the City Council meeting. ___ Gloria D. Harper, Secretary City of Seal Beach Approved: ___ Thomas Moore, Chair Attested: ___ Gloria D. Harper, Secretary Agenda Item C AGENDA STAFF REPORT DATE:June 22, 2020 TO:Honorable Chair and Board Members THRU:Jill R. Ingram, Executive Director FROM:Kelly A. Telford, CPA, Finance Officer SUBJECT:Redemption of Outstanding Tax Allocation Bonds ________________________________________________________________ SUMMARY OF REQUEST: That the Governing Board of the Successor Agency to the Seal Beach Redevelopment Agency adopt Resolution SA 20-01, approving the use of bond funds to effect a redemption of outstanding tax allocation bonds and taking related actions. BACKGROUND AND ANALYSIS: Before dissolution, the Redevelopment Agency of the City of Seal Beach (the “Former Agency”) issued its Tax Allocation Refunding Bonds, 2000 Series A (Riverfront Redevelopment Project) (the “2000A Bonds”). The Successor Agency has continued to pay principal and interest payments and other expenses related to the 2000A Bonds. The scheduled final maturity date of the 2000A Bonds is September 1, 2023. The remaining principal amount of the 2000A Bonds is $685,000. Pursuant to the indenture (the governing document for the 2000A Bonds), the 2000A Bonds are currently subject to redemption (i.e., early retirement) on any date at the Successor Agency’s option. When the 2000A Bonds were issued, a portion of the proceeds of the 2000A Bonds was deposited into a Reserve Account maintained by the bond trustee. Pursuant to the indenture, moneys in the Reserve Account may be used for the retirement of all of the outstanding 2000A Bonds. There is sufficient money in the Reserve Account to effect a full redemption of the 2000A Bonds. Such redemption of the 2000A Bonds will be in furtherance of the wind-down of the Former Agency’s affairs and will result in savings of interest payments. Staff recommends that the Successor Agency Board approves the use of moneys in the Reserve Account (and any other moneys held by the bond trustee under the indenture) to effect a redemption of all outstanding 2000A Bonds. Page 2 7 7 4 Upon the Successor Agency Board’s adoption of this Resolution, Staff will request that the Orange Countywide Oversight Board approve a corresponding resolution at its next meeting, scheduled to be held on July 21, 2020. The Oversight Board resolution is subject to the review and approval of the California State Department of Finance (the “DOF”). Staff expects to receive the DOF’s approval by mid-September, and can then proceed with the redemption soon thereafter (upon required notices to the bond trustee and bondholders). ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: General Counsel has reviewed and approved as to form. FINANCIAL IMPACT: The 2000A Bonds are subject to redemption at a price equal to 100% of the redeemed principal amount without penalty. Assuming the bonds are redeemed in October or November 2020, the Successor Agency will save approximately $50,000 in interest, as well as future expenses relating to the administration of the 2000A Bonds. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: That the Governing Board of the Successor Agency adopt Resolution SA 20-01, approving the use of bond funds to effect a redemption of outstanding tax allocation bonds and taking related actions. SUBMITTED BY: NOTED AND APPROVED: Kelly A. Telford Jill R. Ingram Kelly A. Telford, CPA, Finance Officer Jill R. Ingram, Executive Director Page 3 7 7 4 ATTACHMENTS: A. Resolution SA 20-01 RESOLUTION SA 20-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO SEAL BEACH REDEVELOPMENT AGENCY APPROVING THE USE OF BOND FUNDS TO EFFECT A REDEMPTION OF OUTSTANDING TAX ALLOCATION BONDS AND TAKING RELATED ACTIONS RECITALS: A. The Redevelopment Agency of the City of Seal Beach (the “Former Agency”) issued its Tax Allocation Refunding Bonds, 2000 Series A (Riverfront Redevelopment Project) (the “2000A Bonds”), pursuant to an Indenture, dated as of December 1, 2000 (the “Indenture”), by and between the Former Agency and BNY Western Trust Company (who is now The Bank of New York Mellon Trust Company, N.A.), as trustee (the “Trustee”). B. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Former Agency was dissolved as of February 1, 2012, the Successor Agency to the Seal Beach Redevelopment Agency (the “Successor Agency”) was constituted. C. All assets and contracts of the Former Agency transferred to the control of the Successor Agency by operation of law, and the Successor Agency is required to continue to make payments due for enforceable obligations. D. The Successor Agency has continued to pay principal and interest payments and other expenses related to the 2000A Bonds. E. The scheduled final maturity date of the 2000A Bonds is September 1, 2023; provided, pursuant to the Indenture, the 2000A Bonds are currently subject to redemption (i.e., early retirement) on any date, at the option of the Successor Agency, after required notices to the Trustee and the bondholders. F. When the 2000A Bonds were issued, a portion of the proceeds of the 2000A Bonds was deposited into a Reserve Account (the “Reserve Account”) established and held by the Trustee under the Indenture. G. Pursuant to the Indenture, moneys in the Reserve Account (by themselves or together with any other available moneys) may be used for the retirement of all of the outstanding 2000A Bonds. H. As of the date of this Resolution, the outstanding principal amount of the 2000A Bonds is $685,000. I. There is sufficient money in the Reserve Account to effect a full redemption of all of the 2000A Bonds. Resolution SA 20-01 J. The redemption of the 2000A Bonds will be in furtherance of the Successor Agency’s task to wind-down the Former Agency’s affairs and will result in savings of interest payments. 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. The use of the moneys in the Reserve Account (and any other moneys held by the Trustee under the Indenture) to effect a full redemption of the outstanding 2000A Bonds pursuant to the terms of the Indenture during fiscal year 2020-21, or anytime thereafter, is hereby authorized. Section 3. The officers and the other Staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, including the execution of any instruments, which they may deem necessary or advisable to effectuate this Resolution and the redemption of the 2000A Bonds. PASSED, APPROVED and ADOPTED by the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 22nd day of June, 2020 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Schelly Sustarsic, Chair ATTEST: Gloria D. Harper, Secretary Resolution SA 20-01 5 1 3 7 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria Harper, Secretary of the Successor Agency to the Seal Beach Redevelopment Agency, do hereby certify that the foregoing resolution is the original copy of Resolution SA 20-01 on file in the office of the City Clerk of the City of Seal Beach, passed, approved, and adopted by the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 22nd day of June, 2020.