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HomeMy WebLinkAboutRDA Min 1986-07-28 7-28-86 Seal Beach, California July 28, 1986 The Redevelopment Agency of the City of Seal Beach met in regular session at 6:45 p.m. with Chairman Wilson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Wilson Agency Members Clift, Hunt, Risner I Absent: Agency Member Grgas Mr. Grgas arrived at the meeting at 6:52 p.m. Also present: Mr. Nelson, Executive Director Mr. Stepanicich, City Attorney Mr. Strausz, Assistant City Attorney Mr. Thomas, Finance Director Mrs. Yeo, Secretary WAIVER OF FULL READING Wilson moved, second by Hunt, to waive the reading in full of resolutions and that consent to the waiver of reading shall be deemed to be given by all Agency members after reading of the title unless specific request is made at that time for the reading of such resolution. AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried APPROVAL OF MINUTES Risner moved, second by Hunt, to approve the minutes of the regular Redevelopment Agency meeting of May 27, 1986. I AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried Risner moved, second by Clift, to approve the minutes of the regular Redevelopment Agency meeting of June 23, 1986. AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried ISSUANCE OF TAX ALLOCATION BONDS Staff briefly reviewed the memorandums from the Finance Director and Assistant City Attorney, Mr. Strausz, reviewing the procedures required for the issuance of tax allocation bonds by the Agency. Staff confirmed that the intent is to refinance existing bonds at a lesser interest rate, the proceeds of the sale to be utilized by the Agency to reimburse the City for monies advanced to the Agency over several years. Staff noted that based upon current information available to the Agency's financial consultants, Miller and Schroeder Financial, Inc., certain changes had been made I to proposed Resolutions 86-7 and 86-8, copies of the revised documents provided to the Agency. RESOLUTION NUMBER 86-6 - AUTHORIZING ISSUANCE - TAX ALLOCATION BONDS Resolution Number 86-6 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH AUTHORIZING THE ISSUANCE OF TAX ALLOCATION BONDS 7-28-86 OF THE AGENCY TO AID IN THE FINANCING OF A PORTION OF THE COST OF A REDEVELOPMENT PROJECT AND RANKING ON A PARITY WITH BONDS PREVIOUSLY ISSUED BY THE AGENCY." By unanimous consent, full reading of Resolution Number 86-6 was waived. Clift moved, second by Risner, to adopt Resolution Number 86-6 as presented. I AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried RESOLUTION NUMBER 86-7 - DETERMINING PRINCIPAL AMOUNT - TAX ALLOCATION BONDS Revised Resolution Number 86-7 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH DETERMINING TO ISSUE A CERTAIN PRINCIPAL AMOUNT OF TAX ALLOCATION BONDS OF THE AGENCY AND PROVIDING FOR CERTAIN DETAILS OF THE BONDS." By unanimous consent, full reading of Resolution Number 86-7 was waived. Risner moved, second by Clift, to adopt revised Resolution Number 86-7 as presented. AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried I RESOLUTION NUMBER 86-8 - PROVIDING FOR SALE - TAX ALLOCATION BONDS, ISSUE 1986 Revised Resolution Number 86-8 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH PROVIDING FOR THE SALE OF TAX ALLOCATION BONDS, ISSUE OF 1986, OF THE AGENCY." By unanimous consent, full reading of Resolution Number 86-8 was waived. Clift moved, second by Wilson, to adopt revised Resolution Number 86-8 as presented. AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried RESOLUTION NUMBER 86-9 - FURTHER ACTIONS (CONSENT TO ACQUISITION) - ISSUANCE OF TAX ALLOCATION BONDS Resolution Number 86-9 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH TAKING FURTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF BONDS BY THE AGENCY." By unanimous consent, full reading of Resolution Number 86-9 was waived. Risner moved, second by Clift, to adopt Resolution Number 86-9 as presented. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried JOINT PUBLIC HEARING It was the consensus of the Agency to postpone the joint public hearing until the noticed hour of 7:00 p.m. I ORAL COMMUNICATIONS Chairman Wilson declared Oral Communications open. Reva Olsen, 1625 Seal Way, inquired about the intent of the bond issue, if it was for refinancing purposes only, and costs involved. The Finance Director explained that the bond issue is taking advantage of current market rates with an opportunity to provide the Agency with funds to 7-28-86 repay a portion of its debt to the City, noting that the issue will not be sufficient to repay the entire debt. He clarified that there are costs involved with the issue which will be deducted from the total bond issue. In response to Ms. Olsen, Council stated the monies derived from the bond issue are not designated for Zoeter School acquisition. Mr. Bruce Stark, 204 Ocean Avenue, questioned the intended use of the loan repayment to the City. The City Manager responded that the monies will be used to create necessary reserve funds toward the City's financial stability, specifically describing reserve funds proposed for the 1986/87 fiscal year budget, noting also, possible expenditures for certain one time items during the fiscal year. Ms. Sherry Passmore, Citizens Property Rights Committee, referred to Resolution 86-6, questioning the authorization to issue bonds up to five million dollars. The Assistant City Attorney explained that the five million dollar figure is an arbitrary not to exceed figure, the amount of bonds that can be issued governed by the amount of estimated tax increment, and at this time the anticipated issue will be approximately $2.3 million dollars. Mr. Strausz confirmed that the Agency could not pursue an additional bond issue up to the five million dollar.. figure without proceeding under the same procedure as is being followed for this issue, referencing specifically the supplemental Resolution 86-7, and likewise without tax increment to support an additional issue. The staff again clarified the intent of the issue to take advantage of the interest rates and repay a portion of the Agency's debt to the City. Ms. Passmore stated her opinion that the Agency should be aware of all related fees prior to taking action on this matter. A representative of Miller and Schroeder responded that exact costs involved are not certain at this time, however will be known prior to issuance. The Executive Director reported that documents relating to the tax allocation bond issue have been available for public review. There being no further communications; Chairman wilson declared Oral Communications closed. The City Council meeting convened at 7:19 p.m. with all members present and Mayor Clift assuming the conduct of the joint public hearing. 'I I JOINT PUBLIC HEARING - STATEMENT OF EXISTING AGENCY OBLIGATIONS Mayor Clift declared the joint public hearing of the City Council and the Redevelopment Agency open to consider approval of a proposed statement of existing obligations of the Agency regarding the Riverfront Redevelopment project. The City Clerk certified that notice of the joint public hearing had been advertised as required by law, and reported no communications had been received either for against this matter. The Finance Director presented the staff report, noting a recent amendment to Redevelopment Law requiring redevelopment agencies to set aside twenty percent of tax increment in connection with projects established prior to 1977 in a low and moderate income housing fund unless certain findings can be made. Mr. Thomas explained that the Agency may comply with the new law by finding that the supply of low and moderate income housing has I ' already been met by other sources or that the Agency needs its tax increment to payoff existing obligations or to fund proposed activities. The Finance Director reported that the Agency's financial records show that, for fiscal year 1985-86, the Agency's existing obligations exceeded the tax increment received in connection with the Riverfront Redevelop~ent Project, and that the proposed Agency Resolution 86-10 and Council Resolution 3622 reflect those facts. : 7-28-86 I Mayor Clift invited members of the audience wishing to speak to this item to come to the microphone and state their name and address for the record. Ms. Sherry Passmoor, Citizens Property Rights Committee, requested clarification of the finding that is proposed to satisfy the low and moderate set aside, also asked if the Agency debt is proposed to be paid in full. The City Attorney restated the findings that may be made to comply with State law, explaining that it has been determined that the Agency's existing obligations exceed the tax increment, thus the finding as set forth in the proposed Resolutions. The Finance Director reported it is anticipated that some of the Agency's debt will remain unpaid, and would be carried forward to another year, possibly retired from a subsequent increment or other source. There were no other communications: Mayor Clift declared the joint public hearing closed. RESOLUTION NUMBER 86-10 - STATEMENT OF EXISTING OBLIGATIONS - RIVERFRONT RE1li&VELOPMENT PROJECT Resolution Number 86-10 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, CALIFORNIA, APPROVING AND ADOPTING A PROPOSED STATEMENT OF EXISTING OBLIGATIONS REGARDING RIVERFRONT REDEVELOPMENT PROJECT." By unanimous consent, full reading of Resolution Number 86-10 was waived. Risner moved, second by Hunt, to find that the Agency's existing obligations exceed its annual tax increment and that the amount required to be deposited into the Low and Moderate Income Housing Fund is necessary in order to make payments under existing obligations, and that Resolution Number 86-10 be adopted as presented. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried RESOLUTION NUMBER 3622 - APPROVING ISSUANCE OF TAX ALLOCATION BONDS - REDEVELOPMENT AGENCY Resolution Number 3622 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING THE ISSUANCE OF TAX ALLOCATION BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH." By unanimous consent, full reading of Resolution Number 3622 was waived. Hunt moved, second by Risner, to adopt Resolution Number 3622 as presented. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried This concluded the joint public hearing of the City Council and the Redevelopment Agency. ADJOURNMENT Wilson moved, second by Clift, to adjourn the Redevelopment Agency meeting until Monday, August 11, 1986 at 6:45 p.m. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The meeting adjourned at 7:30 p.m. ~A"/~ Chairman :'...