HomeMy WebLinkAboutSA RESO 2012-11RESOLUTION NO. 2012 — 11
RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS
THE NATIONAL CITY REDEVELOPMENT AGENCY ADOPTING
THE RECONSIDERD AND AMENDED MAY 29, 2012 RECOGNIZED
OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD
JANUARY 1, 2012 THROUGH JUNE 30, 2012
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, on February 1, 2012, all
California redevelopment agencies were dissolved, successor agencies were established as
successor agencies to the former redevelopment agencies pursuant to Health 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
Community Development Commission of the City of National City ("CDC") upon the dissolution
of the Redevelopment Agency under AB 26 ("Successor Agency"); and
WHEREAS, on March 6, 2012, the Successor Agency was established as a
separate legal entity through the adoption of Successor Agency Resolution No. 2012-04; and
WHEREAS, pursuant to Health and Safety Code Section 34177(I)(2)(A) of AB
26, the Successor Agency approved and adopted its first Recognized Obligation Payment
Schedule ("ROPS 1") on February 21, 2012; and
WHEREAS, in accordance with AB 26, the ROPS was prepared using the
preliminary draft Initial ROPS 1 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
Resolution No. 2012 — 11
May 29, 2012
Page Two
WHEREAS, according to Health and Safety Code Section 34177(I)(1) of AB 26,
for each recognized obligation, the ROPS 1 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 1 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 1 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 1 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 1 was submitted to the Controller's Office and the Department of
Finance by April 15, 2012; and
WHEREAS, the Successor Agency approved the ROPS 1 on February 21, 2012,
and as amended on April 2, 2012; and
WHEREAS, the ROPS 1 was submitted to the Oversight Board for approval on
April 10, 2012, but action was not taken at that time. The Oversight Board asked the item be
brought back before them at their next meeting, held on May 2, 2012; and
WHEREAS, the Oversight Board approved the ROPS 1 at their meeting held on
May 2, 2012; and
WHEREAS, the ROPS 1 was forwarded to the County Auditor, State Controller
and Department of Finance on May 3, 2012;
WHEREAS, on May 8, 2012, the Department of Finance informed the Successor
Agency that it was reviewing the ROPS 1 and thereafter on May 18, 2012, sent a letter to the
Successor Agency stating certain items were not enforceable obligations, thus the ROPS 1 was
being returned for reconsideration; and
WHEREAS, on May 22, 2012, staff presented to the Successor Agency
recommendations in response to the DOF letter of May 18, 2012; and
WHEREAS, after May 22, 2012, an error was discovered on ROPS 1 regarding
Items 85 and 86 in that the Sewer Loan for Item 86 in the amount of $420,000 was erroneously
listed under Item 85 and such correction to these items has been made on the proposed
amended ROPS 1; and
Resolution No. 2012 — 11
May 29, 2012
Page Three
WHEREAS, subsequent to the May 22, 2012, certain adjustments to dollar
amounts related to Items 10 and 11 became apparent thus necessitating a return to the
Successor Agency for further reconsideration of ROPS 1, and seeking approval of an amended
ROPS 1; and
WHEREAS, on May 29, 2012 the Successor Agency reconsidered the amended
ROPS 1, as requested by the Department of Finance; 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
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 1
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, now having reconsidered the ROPS 1,
desires to amend the ROPS 1, subject to the contingencies and reservations set forth herein;
and
WHEREAS, the Successor Agency's proposed amended ROPS 1, 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 et 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
Resolution No. 2012 — 11
May 29, 2012
Page Four
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 Amended ROPS 1, which is attached hereto as
Exhibit "A", is approved and adopted.
Section 4. The Executive Director, or designee, is hereby authorized and directed to:
(i) provide the Amended ROPS 1 to the Oversight Board; 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 29th day of May, 2
n Morrison, Chairman
ATTEST:
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Michael R. Dall , City Clerk as
Secretary to the Successor Agency
AS TO FORM:
Successor Kabncv Counsel
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Passed and adopted by the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California, on
May 29, 2012 by the following vote, to -wit:
Ayes: Boardmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
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:
1-1t'14L11jf"A
City Clerk Sekving 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. 2012-11 of the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California,
passed and adopted on May 29, 2012.
City Clerk Serving as Secretary
to the Successor Agency
By:
Deputy