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HomeMy WebLinkAboutSA RESO 2012-02RESOLUTION NO. 2012 — 02 • RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE, AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the Community Development Commission of the City of National City ("CDC"), had engaged in redevelopment activities as a redevelopment agency under the Community Redevelopment Law (Health and Safety Code sections 33000, et seq.) ("CRL") and has and continues to engage in housing authority activities as a Housing Authority under the Housing Authority Law (Health and Safety Code sections 34200, et seq.); and WHEREAS, at the time the City of National City formed the CDC, the City also established the Housing Authority of the City of National City (Ordinance No. 1484, dated October 14, 1975); and WHEREAS, the Redevelopment Agency of the City of National City ("Agency") was established by Ordinance No. 1164, dated April 11, 1967; and WHEREAS, the CDC was established to enable both the Agency and the Housing Authority to operate under a single board and single entity; and WHEREAS, the CDC was responsible for the administration of redevelopment activities within National City; and • WHEREAS, AB 1X 26 ("AB 26") and AB 1X 27 ("AB 27") were signed by the Governor of California on June 28, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) ("Part 1.85") to Division 24 of the California Health and Safety Code ("Health and Safety Code"); and WHEREAS, the California Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (California Redevelopment Association, et al. v. Matosantos, et al., Case No. S194861) alleging that AB 26 and AB 27 were unconstitutional; and WHEREAS, on December 29, 2011, the Supreme Court issued its opinion in the Matosantos case largely upholding as constitutional AB 26, invalidating as unconstitutional AB 27, and holding that AB 26 may be severed from AB 27 and enforced independently; and WHEREAS, the Supreme Court generally reformed and revised the effective dates and deadlines for performance of obligations under Health and Safety Code Part 1.85 of AB 26 arising before May 1, 2012 to take effect four months later, while leaving the effective dates or deadlines for performance of obligations under Health and Safety Code Part 1.8 of AB 26 unchanged; and WHEREAS, as a result of the Supreme Court's decision, and on February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were 40 established as successor agencies to the former redevelopment agencies pursuant to Health Resolution No. 2012 — 02 February 21, 2012 Page Two and Safety Code Section 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies, and winding down the affairs of the former redevelopment agencies; and WHEREAS, the City Council adopted Resolution No. 2012-15 on January 10, 2012, pursuant to Part 1.85, electing for the City to serve as the successor agency to the CDC upon the dissolution of the Redevelopment Agency under AB 26 ("Successor Agency"); and WHEREAS, pursuant to Health and Safety Code Section 34177(I)(2)(A) of AB 26, the Successor Agency is required to prepare its first Recognized Obligation Payment Schedule ("ROPS") by March 1, 2012; and WHEREAS, in accordance with AB 26, the proposed ROPS has been prepared using the preliminary draft Initial ROPS prepared and approved by the CDC on September 27, 2011, and as amended on January 24 and January 31, 2012, pursuant to Health and Safety Code Section 34169(h); and WHEREAS, pursuant to AB 26, the ROPS shall be forward looking to the next six (6) months, however, as a result of the Supreme Court's extension of certain deadlines of Part 1.85 of AB 26, the period to be covered by the first ROPS is May 1, 2012 through June 30, 2012; and WHEREAS, according to Health and Safety Code Section 34177(I)(1) of AB 26, for each recognized obligation, the ROPS shall identify one or more of the following sources of payment: (i) Low and Moderate Income Housing Funds, (ii) bond proceeds, (iii) reserve balances, (iv) administrative cost allowance, and (v) the Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or by the provision of Part 1.85 of AB 26; and WHEREAS, according to Health and Safety Code Section 34177(I)(2)(A) of AB 26, from February 1, 2012 to July 1, 2012, the initial draft of the ROPS shall project the dates and amounts of scheduled payments for each enforceable obligation for the remainder of the time period during which the redevelopment agency would have been authorized to obligate property tax increment had such a redevelopment agency not been dissolved; and WHEREAS, once approved by the Successor Agency, the ROPS shall thereafter be reviewed and certified by the County Auditor/Controller, through the use of an external auditor, and submitted to the Oversight Board for review and approval. A copy of the approved ROPS shall be submitted to the County Auditor/Controller and both the Controller's office and the Department of Finance, and shall be posted on the Successor Agency's internet website. The first ROPS shall be submitted to the Controller's office and the Department of Finance by April 15, 2012; and WHEREAS, Health and Safety Code Section 34177(a)(1) of AB 26 requires the Successor Agency to continue to make payments due for enforceable obligations and, from February 1, 2012 until a ROPS becomes operative, only payments required pursuant to the Enforceable Obligations Payment Schedule shall be made; and Resolution No. 2012 — 02 February 21, 2012 Page Three WHEREAS, pursuant to Health and Safety Code Section 34177(a)(3), commencing on May 1, 2012, only payments listed in the ROPS may be made by the Successor Agency from the funds specified in the ROPS and, commencing May 1, 2012, the ROPS shall supersede the Statement of Indebtedness of the CDC; and WHEREAS, it is the intent of AB 26 that the ROPS serve as the designated reporting mechanism for disclosing the Successor Agency's bi-annual payment obligations by amount and source and, subsequent to the audit and approval of the ROPS as specified in AB 26, the County Auditor/Controller will be responsible for ensuring that the Successor Agency receives revenues sufficient to meet the requirements of the ROPS during each bi-annual period; and WHEREAS, notwithstanding the provisions of Health and Safety Code Section 34177(a)(1), agreements between the City and the CDC have been included in the ROPS because, among other things, they have been validated by operation of law prior to the Governor's signature of AB 26 on June 28, 2011; and WHEREAS, the Successor Agency's proposed ROPS, which is consistent with the requirements of the Health and Safety Code and other applicable law, is attached to this Resolution as Exhibit "A"; and WHEREAS, this Resolution has been reviewed with respect to applicability of the. California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 of seq., hereafter the "Guidelines"), and the City's environmental guidelines; and WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, BE IT RESOLVED by the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, as follows: Section 1. The foregoing recitals are true and correct, and are a substantive part of this Resolution. Section 2. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of AB 26 through administrative or judicial proceedings. Section 3. The Successor Agency's ROPS, which is attached hereto as Exhibit "A", is approved and adopted. Resolution No. 2012 — 02 February 21, 2012 Page Four Section 4. The Executive Director, or designee, is hereby authorized and directed to: (i) provide the ROPS to the Oversight Board upon its establishment; and (ii) take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution on behalf of the Successor Agency. Section 5. The Successor Agency determines that this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines. Section 6. This Resolution shall take effect upon the date of its adoption. PASSED and ADOPTED this 21st day of Februa_ryT-2012 lemon Morrison, Chairman ATTEST: __AIZ1J)IU - Mich el R. 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Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California By: Lr/V N" ity Clerk Serving as Secretary to the Successor Agency Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2012-2 of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California, passed and adopted on February 21, 2012. By: City Clerk Serving as Secretary to the Successor Agency Deputy