HomeMy WebLinkAboutCC RESO 2012-177RESOLUTION NO. 2012 — 177
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
BY AND BETWEEN THE SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT
AGENCY AND THE CITY OF NATIONAL CITY REGARDING
THE COOLIDGE AVENUE COMMUNITY CORRIDOR
CAPITAL IMPROVEMENT PROJECT
WHEREAS, the City Council of the City of National City established the
Redevelopment Agency of the City of National City (the "Redevelopment Agency") by
Ordinance No. 1164, dated April 11, 1967; and
WHEREAS, the City Council established the Housing Authority of the City of
National City (the "Housing Authority") by Ordinance No. 1484, dated October 14, 1975; and
WHEREAS, the City Council established the Community Development
Commission of the City of National City (the "CDC") by Ordinance No. 1484, dated October 14,
1975, and vested the CDC with all of the powers, duties and responsibilities of both the
Redevelopment Agency and the Housing Authority, among other matters, for the purpose of
enabling the CDC to operate and govern the Redevelopment Agency and the Housing Authority
under a single board and as a single operating entity. The Community Development
Commission of the City of National City acting in its capacity as the Redevelopment Agency of
the City of National City is referred to herein as the "CDC -RDA"; and
WHEREAS, pursuant to Assembly Bill No. X1 26 (2011-2012 1st Ex. Sess.)
signed by the California Governor on June 28, 2011 ("AB 26"), as modified by the California
Supreme Court on December 29, 2011, pursuant to its decision in California Redevelopment
Association v. Matosantos, which amended, among other statutes, the California Community
Redevelopment Law (Health & Safety Code §§ 33000 et seq.) (the "CRL"), all California
redevelopment agencies, including the Redevelopment Agency and the CDC -RDA, were
dissolved on February 1, 2012, and successor agencies were designated and vested with the
responsibility of winding down the business and fiscal affairs of the former redevelopment
agencies; and
WHEREAS, pursuant to AB 26, the City Council of the City adopted Resolution
No. 2012-15 on January 10, 2012, electing to be the Successor Agency to the CDC -RDA. The
Successor Agency is a legal entity that exists separate and independent from the City. The
Successor Agency formally named itself the "Successor Agency to the Community
Development Commission as the National City Redevelopment Agency"; and
WHEREAS, on February 1, 2012, all assets, properties, contracts, leases, books
and records, buildings and equipment of the Redevelopment Agency and the CDC -RDA were
transferred by operation of law to the control of the Successor Agency and all authority, rights,
powers, duties, and obligations previously vested in the Redevelopment Agency and the CDC -
RDA were vested in the Successor Agency, for administration pursuant to Part 1.85 of AB 26;
and
WHEREAS, as part of the FY 2012-2013 State budget package, on June 27,
2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 ("AB 1484",
Chapter 26, Statutes 2012). Although the primary purpose of AB 1484 is to make technical and
Resolution No. 2012 — 177
August 14, 2012
Page Two
substantive amendments to AB 26 based on issues that have arisen in the implementation of
AB 26, AB 1484 imposes additional statutory provisions relating to the activities and obligations
of successor agencies and to the wind down process of former redevelopment agencies; and
WHEREAS, the Successor Agency is required to undertake several actions
pursuant to Part 1.85 of AB 26 as amended by AB 1484, including, without limitation, to
expeditiously wind down the business and fiscal affairs of the Redevelopment Agency and the
CDC -RDA pursuant to Health and Safety Code Section 34177(h) of AB 1484; and
WHEREAS, under AB 26 as amended by AB 1484, each successor agency shall
have an oversight board with fiduciary responsibilities to holders of enforceable obligations and
the taxing entities that benefit from distributions of property taxes and other revenues pursuant
to Health and Safety Code Section 34188; and
WHEREAS, the oversight board has been established for the Successor Agency
(hereinafter referred to as the "Oversight Board") and all seven (7) members have been
appointed to the Oversight Board pursuant to Health and Safety Code Section 34179. The
duties and responsibilities of the Oversight Board are primarily set forth in Health and Safety
Code Sections 34179 through 34181 of AB 26 as amended by AB 1484; and
WHEREAS, in accordance with and pursuant to the CRL, the CDC -RDA issued
its 2011 Tax Allocation Bonds in March 2011 ("Bonds"). The Bonds contain use of proceeds
requirements and tax-exempt compliance matters. Specifically, the Bonds provide that one of
the projects for which the proceeds of the Bonds ("Bond Proceeds") are to be expended is the
Coolidge Corridor I project (referred to herein as the Coolidge Avenue Community Corridor
Capital Improvement Project or "Project"). The Project will provide pedestrian and safety
enhancements around Kimball Elementary School; and
WHEREAS, the City received a Federal Safe Route to Schools grant for
approximately $730,000 that requires a local match of $200,000. The grant requires that
Project close-out occur by September 30, 2014; and
WHEREAS, the Bonds provide that the Bond Proceeds are to be used for the
Project and it is in the best interests of the City and for the common benefit of residents,
employees, business tenants and property owners within the City for the Project to be
developed and constructed;
WHEREAS, due to the expertise and experience of City staff, the Successor
Agency desires for the City to provide administrative and project management services and
administer and expend, on behalf of the Successor Agency, the Bond Proceeds in connection
with the development and construction of the Project; and
WHEREAS, the City is agreeable to providing administrative and project
management services and administering and expending, on behalf of the Successor Agency,
the Bond Proceeds in connection with the development and construction of the Project; and
WHEREAS, pursuant to Health and Safety Code Section 34180(h) of AB 1484,
the Successor Agency, with the prior approval of the Oversight Board, may enter into
agreements with the City; and
Resolution No. 2012 — 177
August 14, 2012
Page Three
WHEREAS, Health and Safety Code Section 34171(d)(1)(F) of AB 1484 defines
an "enforceable obligation" to include contracts or agreements necessary for the administration
or operation of the Successor Agency; and
WHEREAS, Health and Safety Code Section 34177(i) requires the Successor
Agency to continue to oversee development of properties until the contracted work has been
completed or the contractual obligations of the CDC -RDA can be transferred to other parties;
and
WHEREAS, Health and Safety Code Section 34177(i) also provides that bond
proceeds shall be used for the purposes for which bonds were sold; and
WHEREAS, Health and Safety Code Section 34180(e) provides that Oversight
Board approval is required for the Successor Agency to continue the acceptance of federal or
state grants if that assistance is conditioned upon the provision of matching funds by the
Successor Agency in an amount greater than 5 percent; and
WHEREAS, total costs for the Project are estimated to be $2,100,000 and
WHEREAS, the City and the Successor Agency desire to enter into an
Agreement by and between the Successor Agency to the Community Development Commission
as the National City Redevelopment Agency and the City of National City Regarding the
Coolidge Avenue Community Corridor Capital Improvement Project ("Agreement") to
acknowledge the foregoing recitals and to provide for the City to provide administrative and
project management services and administer and expend, on behalf of the Successor Agency,
the Bond Proceeds in connection with the development and construction of the Project, in the
amount of $1,100,000; and
WHEREAS, the obligations set forth in the Agreement will be contractual
obligations that, if breached, will subject the Successor Agency to damages and other liabilities
or remedies; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
1. The City Council has received and heard all oral and written objections to matters
pertaining to this transaction, and all such oral and written objections are hereby
overruled.
2. The City Council hereby finds and determines that the foregoing recitals are true
and correct.
3. The City Council hereby approves the Agreement.
4. The City Manager, or his/her designee, is hereby authorized and directed to
execute the Agreement on behalf of the City and to sign all other necessary
Resolution No. 2012 — 177
August 14, 2012
Page Four
documents, on behalf of the City, first approved in writing by the City Attorney,
and to take all other actions necessary to implement and carry out the purposes
of the Agreement and this Resolution.
5. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED this 14th day of August20.1,2.
on Morrison, Mayor
ATTEST:
Q.421wlifljt
Michael R. Dalla,'City Clerk
APPROVED TO FOR
w!
Claudia Gacitua
City Attorney
Passed and adopted by the Council of the City of National City, California, on August
14, 2012 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
ic,241)
rk of the
City
City
f National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-177 the City of National City, California, passed and adopted
by the Council of said City on August 14, 2012.
City Clerk of the City of National City, California
By:
Deputy