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HomeMy WebLinkAboutRA Enforceable Obligation Payment ScheduleCITY OF AGENDA ITEM NO.: 3 SAN RAFAEL MEETING DATE: September 6, 2011 San Rafael Redevelopment Agency Agenda Report Department: Redevelopment Prepared by �. Initials StephaniAe ovette, Acting Economic Development Director Nancy Mackle, Vxecutive Director SUBJECT: RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW RECOMMENDATION: Staff recommends that the Agency Board adopt the attached resolution adopting the enforceable obligation payment schedule and direct staff to publish the schedule pursuant to Part 1.8 of the Redevelopment Law. BACKGROUND AND ANALYSIS: On June 28, 2011, the Governor signed ABxl 26 & 27, budget trailer bills to implement the State Budget for FY 2011-2012. ABxl 26, the Dissolution Act, immediately suspended all new redevelopment activities and incurrence of indebtedness, and dissolves redevelopment agencies effective October 1, 2011. Individual redevelopment agencies can continue operations by participating in an Alternative Voluntary Redevelopment Program pursuant ABxl 27. In order to opt in to the Voluntary Program, a City must adopt an ordinance stating it will comply with the provisions of ABx1 27 and submit annual remittance payments to the County Auditor -Controller. By opting in to the program, a redevelopment agency is allowed to continue operations, retain assets and funds, incur debt, continue existing projects, and undertake additional redevelopment projects. Agencies that have not adopted the Alternative Voluntary Redevelopment Program are suspended until the adoption of the ordinance. Limits on Aj�yencv payments Pursuant to Section 34167(h) of the Redevelopment Law, after August 29, 2011, suspended redevelopment agencies are limited in the payments of their obligations. Each suspended redevelopment agency is required to adopt an enforceable obligation payment schedule listing all of the obligations that are enforceable within the meaning of Section 34167(d) of the Redevelopment Law (the "Obligation Payment Schedule"). This Obligation Payment Schedule must be posted on the City website and transmitted to certain parties. FOR AGENCY SECRETARY ONLY File No.: Agency Meeting: Disposition: .: c. ; c A= !4 .2,, ft --,i San Rafael Redevelopment Ai4encv The San Rafael Redevelopment Agency (the "Agency" or "SRRDA") is currently suspended because the Agency has not voted to opt in to the Voluntary Alternative Redevelopment Program allowed by AB1x27. In order to opt in to the Voluntary Program, the City must adopt an ordinance stating it will comply with the provisions of ABxl 27 and submit annual remittance payments to the County Auditor - Controller. By opting in to the program, a redevelopment agency is allowed to continue operations, continue existing projects, retain assets, and undertake additional redevelopment projects. The Voluntary Alternative Redevelopment Program does not take effect until the second reading of the ordinance. Until that date, new agency initiatives are suspended. Agency staff has prepared an Ordinance to comply with the provisions of ABxl 27 and is recommending the San Rafael City Council adopt the proposed ordinance on September 6. 2011. The Voluntary Alternative Redevelopment Program does not take effect until the second reading of the ordinance on September 19, 2011. Enforceable Obligation Schedule Requirements Suspended redevelopment agencies are precluded from making payments, outside of bonded debt service, after August 29, 2011 unless the agency produces a listing of their enforceable obligations for review by the State. The enforceable obligation schedule is only in effect during the time a redevelopment agency is suspended. Agencies that are disbanding will have to produce another schedule prior to December 2011. The provisions of ABlx 27 require dissemination of the Obligation Payment Schedule including posting the Schedule on the City website and transmitting it to the State Controller, the CA Department of Finance and the local County Auditor Controller. The proposed Agency Resolution authorizes the Agency staff to disseminate the required parties. San Rafael Redevelopment A�4encv Enforceable Obligation Schedule SRRDA staff has prepared the attached enforceable obligation schedule for Agency Board approval, in order to continue SRRDA operations until the AB lx 27 ordinance is effective. The attached enforceable obligation schedule has been prepared using a template from the California Redevelopment Association. The template is being used by the majority of redevelopment agencies and lists all agency obligations and the obligations that must be paid between August and December 2011. The SRRDA enforceable obligation schedule includes obligations for current Agency operations, capital improvement funds, and housing activities. The current obligations listed are from the adopted 2011-12 Agency budget of $5.6 million. The schedule also reflects Agency capital improvement funds reserved for current and future projects. The Agency has about $1 million from previous bond issues reserved for capital improvement projects, with $540.000 for Agency street and parking projects. These capital improvement funds can be also be used to fulfill the Andersen Drive obligations or other Agency projects. Lastly, the enforceable obligation schedule also encompasses affordable housing obligations paid by the 20% low and moderate income housing fund. California Redevelopment Avencv Lawsuit On August 11, 2011, the California Supreme Court agreed to review the California Redevelopment Association and League of California Cities' petition challenging the constitutionality of the Redevelopment Restructuring Acts and issued an order granting a partial stay on specified portions of the Redevelopment Restructuring Acts, as modified on August 17, 2011 (the "Stay"), including a stay of provisions of the Voluntary Program Act. The proposed Agency Resolution states that the Agency Board is approving the Obligation Payment Schedule under protest and with a reservation of its rights to perform any and all obligations listed therein without regard to the provisions of the Redevelopment Restructuring Acts and to challenge any contrary determination by the State of California, the County Auditor -Controller or any other body under the provisions of the Redevelopment Restructuring Acts and is not waiving any rights of appeal. FISCAL IMPACT: The Agency's adoption of the Obligation Schedule will assure that the Agency's obligations will continue to be paid beyond August 29, 2011. The operating expenses listed on the Obligation Schedule are consistent with the Agency's approved operating budget. OPTIONS: • Adopt the resolution approving and adopting the Enforceable Payment Obligation Schedule. • Direct staff to alter the proposed Enforceable Payment Obligation Schedule to reflect the desires of the Agency members. • Reject the Resolution and the Enforceable Payment Obligation Schedule. ACTION REQUIRED: Adopt the attached resolution, designating the Acting Economic Development Director as the Agency representative to whom all questions on the Obligation Payment Schedule can be directed, authorize the Agency staff to post the Obligation Payment Schedule on the City website, and notify the Marin County Auditor -Controller, the CA Department of Finance, and the CA Controller of the Agency's action to adopt the Enforceable Obligation Payment Schedule. ATTACHMENT: Enforceable Obligation Schedule. RESOLUTION NO. 2011-11 RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et sec.; the "Redevelopment Law"), the City Council (the "City Council") of the City of San Rafael (the "City") adopted the Redevelopment Plan for the Central San Rafael Redevelopment Project Area by Ordinance No. 1079, on November 20, 1972 (as amended from time to time, the "Redevelopment Plan"); and WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is responsible for implementing the Redevelopment Plan pursuant to the Redevelopment Law, and WHEREAS, AB xl 26 (the "Dissolution Act") and AB xl 27 (the "Voluntary Program Act," and together with the Dissolution Act, the "Redevelopment Restructuring Acts") have been enacted to significantly modify the Redevelopment Law; and WHEREAS, on August 11, 2011, the California Supreme Court agreed to review the California Redevelopment Association and League of California Cities' petition challenging the constitutionality of the Redevelopment Restructuring Acts and issued an order granting a partial stay on specified portions of the Redevelopment Restructuring Acts, as modified by court order issued on August 17, 2011 (the "Stay"); and WHEREAS, under the terms of the Stay and pursuant to Section 34167(h) of the Redevelopment Law, after August 29, 2011, the Agency can only make payments on bond obligations until the Agency adopts an enforceable obligation payment schedule listing all of the obligations that are enforceable within the meaning of Section 34167(d) of the Redevelopment Law (the "Enforceable Obligation Payment Schedule"); and WHEREAS, as further set forth in the staff report accompanying this Resolution (the "Staff Report"), under the terms of various Agency contracts and obligations, the Agency is required to make payments on its enforceable obligations after August 29, 2011, and WHEREAS, to avoid defaulting under its enforceable obligations, the Agency has prepared and desires to adopt an Enforceable Obligation Payment Schedule, under protest and reserving the Agency's rights to recognize and perform any and all obligations listed therein without regard to the provisions of the Redevelopment Restructuring Acts; and WHEREAS, under Title 14 of the California Code of Regulations, Section 15378(b)(4), the approval of this Enforceable Obligation Payment Schedule is exempt from the requirements of the California Environmental Quality Act ("CEQA") in that it is not a project, but instead consists of the continuation of an existing governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program, because it merely lists enforceable obligations previously entered into and approved by the Agency; and WHEREAS, the Agency Board has reviewed and duly considered the Staff Report, the proposed Enforceable Obligation Payment Schedule, and documents and other written evidence presented at the meeting. NOW, THEREFORE, BE IT RESOLVED, that the Agency Board finds that the above Recitals are true and correct and have served, together with the supporting documents, as the basis for the findings and approvals set forth below. BE IT FURTHER RESOLVED, that the Agency Board finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a project. The Agency Board therefore directs that a Notice of Exemption be filed with the County Clerk of the County of Marin in accordance with the CEQA guidelines. BE IT FURTHER RESOLVED, that the Agency Board hereby approves and adopts the Enforceable Obligation Payment Schedule under protest and with a reservation of its rights to perform any and all obligations listed therein without regard to the provisions of the Redevelopment Restructuring Acts and to challenge any contrary determination by the State of California, the County Auditor -Controller or any other body under the provisions of the Redevelopment Restructuring Acts. BE IT FURTHER RESOLVED, that the Agency Board authorizes and directs the Agency's Executive Director or the Executive Director's designee to: (1) post the Enforceable Obligation Payment Schedule on the Agency or the City's websites, (2) designate an Agency representative to whom all questions related to the Enforceable Obligation Payment Schedule can be directed, (3) notify, by mail or electronic means, the County Auditor -Controller, the Department of Finance, and the Controller of the Agency's action to adopt the Enforceable Obligation Payment Schedule and to provide those persons with the internet website location of the posted schedule and the contact information for the Agency's designated contact; and (4) to take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the Enforceable Obligation Payment Schedule on behalf of the Agency. BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. 2 I, ESTHER C. BEIRNE, Agency Secretary of the San Rafael Redevelopment Agency, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael Redevelopment Agency of said City on Tuesday, the 6th day of September, 2011, by the following vote, to wit: AYES: MEMBERS: Brockbank, Connolly, Heller, Levine & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None Esther C. 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SRRA / SRCC AGENDA ITEM NO. 3 DATE OF MEETING: 9/6/2011 FROM: Stephanie Lovette DEPARTMENT: Economic Development DATE: 8/22/2011 TITLE OF DOCUMENT: RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) REMARKS: APPROVED AS TO FORM: City Attorney (signature)