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HomeMy WebLinkAboutSA Agenda Packet_09272021SPECIAL 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 September 27, 2021. 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.seaIbeachca.gov/Government/Agendas-Notices-Meeting-Videos/Council- Commission-Meetings. Those members of the public wishing to call in to comment are asked to send contact information, including phone number to the City Clerk at gharper@sealbeachca.gov, no later than 5:30pm on September 27, 2021 to receive instructions on how to join the meeting. 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 AGENCY ROLL CALL PUBLIC COMMUNICATIONS At this time members of the public may address the Council regarding any 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 no later than 5:30 pm on September 27, 2021. 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. Those members of the public wishing to call in to comment are asked to send contact information, including phone number to the City Clerk at gharper@sealbeachca.gov, no later than 5:30pm on September 27, 2021 to receive instructions on how to join the meeting. 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 April 26, 2021 - Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on April 26, 2021. B. Demands on City Treasury (Fiscal Year 2021 and 2022) — September 27, 2021 - Ratification. C. A Resolution of the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency Requesting the Orange Countywide Oversight Board to Formally Dissolve the Successor Agency, Making a Finding of Exemption Under the California Environmental Quality Act and Taking Related Actions - That the Board adopt Resolution SA 21-02, requesting the Oversight Board to formally dissolve the Successor Agency, making a finding of exemption under the California Environmental Quality Act and taking related actions. ADJOURNMENT Adjourn the Successor Agency to a date uncertain. SUCCESSOR AGENCY TO THE AGENDA STAFF REPORT DATE: September 27, 2021 TO: Honorable Chair and Agency Members THRU: Jill R. Ingram, Executive Director FROM: Gloria D. Harper, Secretary SUBJECT: Approval of Successor Agency Minutes for April 26, 2021 SUMMARY OF REQUEST: Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on April 26, 2021. 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. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. Agenda Item A RECOMMENDATION: Approve the minutes for the regular meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on April 26, 2021. SUBMITTED BY: Gloria D. Harper Gloria D. Harper, Secretary Prepared by: Dana Engstrom, Deputy City Clerk ATTACHMENTS: r_w•rrne� Page 2 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, Executive Director Seal Beach, California April 26, 2021 The Successor Agency met at 7:34 p.m. via teleconference. ROLL CALL Present: Chair Kalmick Agency Members: Moore, Kalmick, Varipapa, Massa-Lavitt Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Philip L. Gonshak, Chief of Police Joe Bailey, Chief, Marine Safety Department Kelly Telford, Director of Finance/City Treasurer Steve Myrter, P.E., Director of Public Works Les Johnson, Director of Community Development Gloria D. Harper, City Clerk Dana Engstrom, Deputy City Clerk ORAL COMMUNICATIONS Chair Kalmick opened oral communications. City Clerk Harper announced that no email communications were received. Chair Kalmick then closed oral communications. CONSENT CALENDAR Member Moore moved, second by Member Sustarsic, to approve Items A through C of the recommended actions on the consent calendar as presented. Secretary Harper took a roll call vote to approve the consent calendar items. AYES: Moore, Sustarsic, Varipapa, Kalmick, Massa-Lavitt NOES: None ABSENT: None ABSTAIN: None Motion carried A. Approval of Successor Agency Minutes for December 14, 2020 - Approve the minutes for the Special meeting of the Successor Agency of the former Seal Beach Redevelopment Agency held on December 14, 2020. B. Demands on City Treasury (Fiscal Year 2021) — April 26, 2021 - Ratification. C. A Resolution of the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency Approving the Execution and Delivery of an Escrow Agreement and a Termination of Regulatory Agreement in Connection with the Defeasance and Redemption of the Redevelopment Agency of the City of Seal Beach Mobilehome Park Revenue Bonds (Seal Beach Mobile Home Park Project) Series 2000A and Authorizing and Providing for Other Matters Properly Related Thereto - That the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency") adopt Resolution SA 21-01: 1. Approving the forms of an Escrow Deposit and Trust Agreement (the "Escrow Agreement") and a Termination of Regulatory Agreement and Declaration of Restrictive Covenants (the "Termination Agreement," and together with the Escrow Agreement, the "Agreements"); and, 2. Authorizing and directing the Executive Director to execute the Agreements; and, 3. Authorizing additional actions deemed necessary to defease and redeem the Redevelopment Agency of the City of Seal Beach Mobilehome Park Revenue Bonds (Seal Beach Mobile Home Park Project) Series 2000A (the "Bonds") and effectuate the provisions of Resolution SA 21-01. ADJOURNMENT With no objections, Chair Kamlick adjourned the meeting at 7:36 p.m. to a date uncertain immediately following the City Council meeting. Approved: Attested: Joe Kalmick, Chair Gloria D. Harper, Secretary Gloria D. Harper, Secretary City of Seal Beach Successor Agency for the Seal Beach Redevelopment Agency Fiscal Year 2021 Warrant Listing for Council Meeting 9-27-2021 Approve by Minute Order Demands on Treasury: Warrants-A/P: Checks 1039 - 1040 Total 9,054.20 $ 9,054.20 Year -to -Date: $ 20,187.24 Note: Year-to-date amounts are actual cash disbursements and do not reflect actual expenditures due to year-end accruals. Respectliiily submitted by: Kelly Telf —d CPA Director of Finance/City Treasurer oQ�a3 `0_ c) ,-k Date: City of Seal Beach Accounts Payable Printed: 09/23/2021 09:50 User:ahoang Checks by Date - Detail By Check Date Detail Page 1 Check Amount Check No: 1039 Check Date: 06/28/2021 Vendor: WIL43 Willdan Financial Services 010-48100 Arbitrage Rebate Services 06/09/2021 2,000.00 Check Total: 2,000.00 Check No: 1040 Check Date: 06/28/2021 Vendor: RICO2 Richards Watson & Gershon 231552 General Services- March 2021 04/23/2021 189.13 231553 Mobile Home Park Refunding -March 2021 04/23/2021 1,899.77 231934 Mobile Home Park Refunding -Apr 2021 05/24/2021 804.55 231933 General Services- Apr 2021 05/24/2021 4,160.75 Check Total: 7,054.20 Date Totals: 9,054.20 Report Total: 0.00 9,054.20 Page 1 Successor Agency for the Seal Beach Redevelopment Agency Fiscal Year 2022 Warrant Listing for Council Meeting 9-27-2021 Approve by Minute Order Demands on Treasury: Warrants-A/P: Electronic Funds Transfer 10000 $ 870.42 Payroll 8,429.45 Total $ 9,299.87 Year -to -Date: $ Note: Year-to-date amounts are actual cash disbursements and do not reflect actual expenditures due to year-end accruals. Respectfully submitted by: Kelly Telfor , PA Director of F inance/City Treasurer Date: 9,299.87 Vendor Number Vendor Name Payment Date Payment Type Bank Code: APBW SA -BW Successor Agency Redevelopment Acct 000818 Richards Watson & Gershon 09/21/2021 EFT Bank Code APBW SA Summary Check Report By Check Number Date Range: 09/21/2021 - 09/22/2021 Discount Amount Payment Amount Number Payment 0.00 0.00 0.00 0.00 870.42 870.42 0.00 870.42 10000 9/23/2021 10:08:04 AM Page 1 of 2 Payable Payment Payment Type Count Count Discount Regular Checks 0 0 0.00 Manual Checks 0 0 0.00 Voided Checks 0 0 0.00 Bank Drafts 0 0 0.00 E FT's 1 1 0.00 1 1 0.00 Check Report By Check Number Date Range: 09/21/2021 - 09/22/2021 Discount Amount Payment Amount Number Payment 0.00 0.00 0.00 0.00 870.42 870.42 0.00 870.42 10000 9/23/2021 10:08:04 AM Page 1 of 2 i�0� SEA('ec�9ti f� G� nyy SUCCESSOR AGENCY AGENDA STAFF REPORT DATE: September 27, 2021 TO: Honorable Chair and Agency Members THRU: Jill R. Ingram, Executive Director FROM: Kelly Telford, CPA, Finance Director/Treasurer SUBJECT: A Resolution of the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency Requesting the Orange Countywide Oversight Board to Formally Dissolve the Successor Agency, Making a Finding of Exemption Under the California Environmental Quality Act and Taking Related Actions SUMMARY OF REQUEST: That the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency") adopt Resolution SA 21-02, to request the Orange Countywide Oversight Board (the "Oversight Board") to adopt a resolution (the "OB Resolution") to: 1. Approve the Successor Agency's request to formally dissolve; and, 2. Direct the transfer of remaining assets of the Successor Agency to the Orange County Auditor -Controller (the "County Auditor -Controller"); and, 3. Direct the submission of the Resolution and the OB Resolution to the California State Department of Finance (the "DOF"). BACKGROUND AND ANALYSIS: In 2012, the Successor Agency was constituted as the successor entity to the former Redevelopment Agency to the City of Seal Beach (the "Former Agency"). The Successor Agency is tasked with winding down the Former Agency's affairs. With the September 20, 2021 redemption of the Mobile Home Park Revenue Bonds (Seal Beach Mobile Home Park Project) Series 2000A (the "Mobile Home Park Bonds") issued by the Former Agency, the last enforceable obligation of the Successor Agency has been retired and paid off. Agenda Item C Pursuant to Health and Safety Code ("HSC") Section 34187(b), the Successor Agency must submit to the Oversight Board a request, with a copy to the Orange County Auditor -Controller (the "County Auditor -Controller"), to formally dissolve the Successor Agency within 30 days of meeting the following criteria (collectively, the "Dissolution Criteria"): (i) all enforceable obligations have been retired or paid off; and, (ii) all real property has been disposed of pursuant to HSC Section 34181 or 34191.4; and, (iii) all outstanding litigation has been resolved. By adopting this Resolution, the Successor Agency Board will make a determination that the Dissolution Criteria have been met. Pursuant to HSC Section 34187(b), the Oversight Board must take action within 30 days to approve the Successor Agency's request to dissolve and then submit the request to the DOF. The DOF will have 30 days to approve or deny the request. Once the DOF approves the request, the Successor Agency will have to take the following steps within 100 days of the DOF's approval: (1) Dispose of all remaining assets and transfer any proceeds to the County Auditor -Controller for distribution to the affected taxing entities. (2) Notify the Oversight Board that it has complied with such disposition and transfer of proceeds. The Successor Agency's remaining assets consist of $528,034.42 (the "Released Bond Funds") returned to the Successor Agency by the bond trustee from the "Rental Assistance Fund" previously held under the indenture for the Mobile Home Park Bonds. In addition, there is a small amount of Successor Agency Administration money from the RPTTF Fund. After the Successor Agency transfers such moneys to the County Auditor -Controller, Staff will request the Successor Agency Board to adopt a last resolution to: (a) notify the Oversight Board of the completion of the transfer, and (b) declare and direct that the Successor Agency will be dissolved upon the Oversight Board's adoption of the Final OB Resolution (defined below). Per HSC Section 34187(f), upon receipt of such notification from the Successor Agency, the Oversight Board must verify that, with respect to the Successor Agency, all obligations have been retired or paid off, all outstanding litigation has been resolved, and all remaining assets have been disposed of with any proceeds remitted to the County Auditor -Controller for distribution to the affected taxing entities. Within 14 days of verification, the Oversight Board will adopt a final Page 2 resolution (the "Final OB Resolution") to dissolve the Successor Agency, which will become effective immediately. ENVIRONMENTAL IMPACT: The request to dissolve the Successor Agency and the dissolution of the Successor Agency pursuant to such request will constitute a change in the organization or reorganization of local governmental agencies that does not alter the geographic areas within which the powers are exercised for the purposes of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.). Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15320 of Title 14 of the California Code of Regulations. In addition, it can be seen with certainty that such request and the dissolution of the Successor Agency will not have a significant effect on the environment. Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. LEGAL ANALYSIS: Successor Agency counsel has approved the proposed resolution as to form. FINANCIAL IMPACT: After the Oversight Board's adoption of the OB Resolution and the DOF's approval of the Successor Agency's request to dissolve, the Successor Agency will transfer the Released Bond Funds to the County Auditor -Controller. The County Auditor - Controller will disburse such moneys to the taxing entities, including the City of Seal Beach. 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 Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency") adopt Resolution SA 21-02, to request the Orange Countywide Oversight Board (the "Oversight Board") to adopt a resolution (the "OB Resolution") to: Page 3 Approve the Successor Agency's request to formally dissolve; and, 2. Direct the transfer of remaining assets of the Successor Agency to the Orange County Auditor -Controller (the "County Auditor -Controller"); and, 3. Direct the submission of the Resolution and the OB Resolution to the California State Department of Finance (the "DOF"). SUBMITTED BY: Kelly Telford Kelly Telford, CPA, Finance Director/Treasurer ATTACHMENTS: MKOTAVVIVAKIYA Page 4 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, Executive Director RESOLUTION SA 21-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY REQUESTING THE ORANGE COUNTYWIDE OVERSIGHT BOARD TO FORMALLY DISSOLVE THE SUCCESSOR AGENCY, MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND TAKING RELATED ACTIONS RECITALS: A. 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 Redevelopment Agency of the City of Seal Beach (the "Former Agency") was dissolved as of February 1, 2012, and the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency") was constituted. B. Pursuant to Section 341790) of the California Health and Safety Code ("HSC"), from and after July 1, 2018, the Orange Countywide Oversight Board (the "Oversight Board") is the oversight board for the Successor Agency. C. The Successor Agency is tasked with winding down the Former Agency's affairs. D. Pursuant to HSC Section 34187(b), the Successor Agency shall submit to the Oversight Board a request, with a copy to the Orange County Auditor - Controller (the "County Auditor -Controller"), to formally dissolve the Successor Agency within 30 days of meeting the following criteria (collectively, the "Dissolution Criteria"): (i) all enforceable obligations have been retired or paid off; and, (ii) all real property has been disposed of pursuant to HSC Section 34181 or 34191.4; and, (iii) all outstanding litigation has been resolved. E. The Successor Agency is not a party to any outstanding litigation. F. All of the Successor Agency's real property (transferred from the Former Agency upon dissolution) has been disposed of pursuant to HSC Section 34181 or the Successor Agency's long-range property management plan ("LRPMP"), which LRPMP was approved by the California State Department of Finance (the "DOF") on February 28, 2014, per HSC Section 34191.4. 12805-0001 \2530520v3.doc Resolution Number SA 21-02 G. At the time of the Former Agency's dissolution, there were three outstanding series of bonds issued by the Former Agency: (i) Tax Allocation Refunding Bonds, 2000 Series A (Riverfront Redevelopment Project) (the "2000A Tax Allocation Bonds"), (ii) Subordinate Tax Allocation Refunding Bonds, 2000 Series B (Riverfront Redevelopment Project) (the "2000B Tax Allocation Bonds"), and (iii) Mobile Home Park Revenue Bonds (Seal Beach Mobile Home Park Project) Series 2000A (the "Mobile Home Park Bonds"). H. The final maturity date of the 2000B Tax Allocation Bonds was October 1, 2018 and have been fully paid. I. The Successor Agency redeemed all remaining 2000A Bonds in November 2020 and they are no longer outstanding. J. The Mobile Home Park Bonds were issued pursuant to an Indenture of Trust, dated as of December 1, 2000 (the "Indenture"). K. Proceeds of the Mobile Home Park Bonds were used to make a loan (the "Loan") to LINC Community Development Corporation ("LINC") for the acquisition of a mobile home park (the "Mobile Home Park") pursuant to a Loan Agreement, dated as of December 1, 2000 (the "Loan Agreement"). L. Seal Beach Shores, Inc. ("SBS") is the successor -in -interest to LINC with respect to the Mobile Home Park and the Loan Agreement. M. Debt service (i.e., principal and interest payments) on the Mobile Home Park Bonds was secured by, and payable solely from, repayments of the Loan by SBS (and its predecessor, LINC) pursuant to the Loan Agreement. N. As permitted by the terms of the Indenture and the Loan Agreement, SBS elected to prepay the Loan in full, and caused a corresponding redemption of all remaining Mobile Home Park Bonds on September 20, 2021. O. Upon the redemption of the Mobile Home Park Bonds, all of the Successor Agency's enforceable obligations have been retired or paid off. P. With the Successor Agency having met the Dissolution Criteria of HSC Section 34187(b), this Board of Directors (the "Board") desires to request the Oversight Board to approve the formal dissolution of the Successor Agency. Q. Pursuant to HSC Section 34187(b), the Oversight Board must take action within 30 days to approve the Successor Agency's request to dissolve and, after such approval, submit the request to the DOF. R. Pursuant to HSC Section 34187(e), after the DOF's approval of the Successor Agency's request to dissolve, the Successor Agency shall dispose of all remaining assets as directed by the Oversight Board and the proceeds of such 12805-0001 \2530520v3.doc Resolution SA 21-02 disposition shall be transferred to the County Auditor -Controller (the "Final Transfer"). S. In connection with the redemption of the Mobile Home Park Bonds, pursuant to the Indenture, the bond trustee returned to the Successor Agency, the amount of $528,034.42 (the "Released Bond Funds"), from the "Rental Assistance Fund" held under the Indenture. T. The Successor Agency's remaining assets consist only of the Released Bond Funds and remaining administration funds from prior RPTTF disbursements. U. Upon the Oversight Board's and the DOF's approval of the Successor Agency's request to dissolve, the Successor Agency will transfer the Released Bond Funds to the County Auditor -Controller for the Final Transfer. 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 Board hereby finds and determines that all of the Dissolution Criteria set forth in HSC Section 34187(b) for the Successor Agency's dissolution have been met. Section 3. The Board hereby requests the Oversight Board to adopt a resolution (the "OB Resolution") to: (i) approve the Successor Agency's request to formally dissolve, (ii) direct the transfer of the Released Bond Funds to the County Auditor -Controller for the Final Transfer, and (iii) submit this Resolution and the OB Resolution to the DOF in accordance with HSC Section 34187(b). Section 4. The Agency Clerk is hereby directed to cause copies of this Resolution to be submitted to: (i) the Oversight Board, and (ii) the County Auditor - Controller. Section 5. The Board hereby finds and determines that the request to dissolve the Successor Agency set forth herein (and the dissolution of the Successor Agency pursuant to such request) shall constitute a change in the organization or reorganization of local governmental agencies that does not alter the geographic areas within which the powers are exercised for the purposes of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.). Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15320 of Title 14 of the California Code of Regulations. In addition, it can be seen with certainty that such request and the dissolution of the Successor Agency will not have a significant effect on the environment. Therefore, such request and dissolution shall be exempt from 12805-0001 \2530520v3.doc Resolution Number SA 21-02 environmental review, pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. Section 6. 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 any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED and ADOPTED by the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 27th day of September, 2021, by the following vote: AYES: Agency Members: NOES: Agency Members: ABSENT: Agency Members: ABSTAIN: Agency Members: Joe Kalmick, Chair ATTEST: Gloria D. Harper, Secretary STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. 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 21-02 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 27th day of September, 2021. 12805-0001 \2530520v3.doc