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. Beirne, Agency Secretary
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CITY OF SAN RAFAEL
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
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)