HomeMy WebLinkAboutSA Draft Agenda Packet 12-07-2021AGENDA OF A REGULAR MEETING - SUCCESSOR AGENCY TO THE
COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY
REDEVELOPMENT AGENCY
ONLINE ONLY MEETING
9-. CALIFORNIA -
https://www.nationalcityea.gov/webcast
MRIONAL CI,ry
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CIVIC CENTER
1243 NATIONAL CITY BOULEVARD
NATIONAL CITY, CALIFORNIA
TUESDAY, DECEMBER 7, 2021 - 6:00 PM
ALEJANDRASOTELO-SOLIS NOTICE: The health and well-being of National City residents, visitors,
Chairwoman and employees during the COVID-19 outbreak remains our top priority.
JOSERODRIGUEZ The City of National City is coordinating with the County of San Diego
Boardmember Health And Human Services Agency, and other agencies to take
measures to monitor and reduce the spread of the novel coronavirus
MARCUS BUSH (COVID-19). The World Health Organization has declared the
Boardmember outbreak a global pandemic and local and state emergencies have
been declared providing reprieve from certain public meeting
RONMORRISON laws such as the Brown Act.
Boardmember
As a result, the Successor Agency Meeting will occur only online to
MONARIOS ensure the safety of City residents, employees and the communities
Boardmember we serve. A live webcast of the meeting may be viewed on the city's
website at www.nationalcityca.gov/webcast. For Public Comments
see "Public Comments" section below.
ORDER OF BUSINESS: Public sessions of all Regular Meetings of the
Successor Agency to the Community Development Commission as the
National City Redevelopment Agency (hereafter referred to as Elected
Body) begin at 6:00 p.m. Public Hearings begin at 6:00 p.m. unless
otherwise noted. Closed Meetings begin in Open Session at 5:00 p.m.,
or such other time as noted, and after announcing closed session
items, convenes into a Closed Meeting. If a workshop is scheduled,
the subject and time of the workshop will appear on the agenda. The
Mayor and Council members also sit as the Chairperson and Members
1243 National City Blvd of the Board of the Community Development Commission (CDC).
National City, CA 91950
619-3364240 REPORTS: All open session agenda items and reports as well as all
documents and writings distributed to the Elected Body less than 72
hours prior to the meeting, are available for review on the City's
website at www.nationalcityca.gov/webcast. Regular Meetings of the
Meeting agendas and Elected Body are webcast and archived on the City's website at
minutes available on web www.nationalcityca.gov/webcast.
WWW.NATIONALCITYCA.GOV PUBLIC COMMENTS: The Successor Agency will receive public
comments via e-mail at clerk(a)nationalcityca.gov regarding any
matters within the jurisdiction of the Successor Agency. Written
comments or testimony from the public (limited to three minutes)
must be submitted via email by 4:00 p.m. on the day off the
public will be made a part of the record of the meeting. The time
limit established for public testimony is three minutes per speaker. The
Mayor or Chairperson may limit the length of comments due to the
number of persons wishing to speak or if comments become
Successor Agency Agenda
12/7/2021 — Page 2
repetitious or unrelated
WRITTEN AGENDA: With limited exceptions, the Elected Body may take action only upon items
appearing on the written agenda. Items not appearing on the agenda must be brought back on a
subsequent agenda unless they are of a demonstrated emergency or urgent nature, and the need to take
action on such items arose after the agenda was posted.
CONSENT AGENDA: Consent calendar items involve matters which are of a routine or noncontroversial
nature. All consent items are adopted by approval of a single motion by the City Council. Prior to such
approval, any item may be removed from the consent portion of the agenda and separately considered,
upon request of a Councilmember, a staff member, or a member of the public.
Upon request, this agenda can be made available in appropriate alternative formats to persons with a
disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at
(619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior
to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this
meeting.
Successor Agency Agenda
12/7/2021 — Page 3
OPEN TO THE PUBLIC
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS (THREE -MINUTE TIME LIMIT)
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NON CONSENT RESOLUTIONS
Resolution of the Board of the Successor Agency to the Community
Development Commission as the National City Redevelopment Agency
Approving the Recognized Obligation Payment Schedule (ROPS) for the
Period July 1, 2022 through June 30, 2023 (ROPS 22-23) with
Expenditures Totaling $4,431,809, Approving the Associated
Administrative Budget of $230,000, and Authorizing the submittal of both
to the County of San Diego Countywide Redevelopment Successor
Agency Oversight Board.
NEW BUSINESS
STAFF REPORTS
MEMBER REPORTS
CLOSED SESSION REPORT
ADJOURNMENT
Regular City Council/Community Development/Housing Authority of the
City of National City Meeting -
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Successor Agency Agenda
12/7/2021 — Page 4
The following page(s) contain the backup material for Agenda Item: Resolution of the
Board of the Successor Agency to the Community Development Commission as the
National City Redevelopment Agency Approving the Recognized Obligation Payment
Schedule (ROPS) for the Period July 1, 2022 through June 30, 2023 (ROPS 22-23) with
Expenditures Totaling $4,431,809, Approving the Associated Administrative Budget of
$230,000, and Authorizing the submittal of both to the County of San Diego Countywide
Redevelopment Successor Agency Oversight Board.
Please scroll down to view the backup material.
THE SUCCESSOR AGENCY TO
THE COMMUNITY DEVELOPMENT COMMISSION
AS THE NATIONAL CITY REDEVELOPMENT AGENCY
AGENDA STATEMENT
MEETING DATE: December 07. 2021 AGENDA ITEM NO.
ITEM TITLE:
Resolution of the Board of the Successor Agency to the Community Development Commission as the
National City Redevelopment Agency Approving the Recognized Obligation Payment Schedule (ROPS)
for the Period July 1, 2022 through June 30, 2023 (ROPS 22-23) with Expenditures Totaling $4,431,809,
Approving the Associated Administrative Budget of $230,000, and Authorizing the submittal of both to the
County of San Diego Countywide Redevelopment Successor Agency Oversight Board.
PREPARED BY: Janel Pehau, Finance Analyst
PHONE: 619-336-4330
EXPLANATION:
DEPARTMENT: Successor Agency
APPROVED BY: /I/L Y P!'=
The proposed Recognized Obligation Payment Schedule (ROPS) for the period July 1, 2022 through
June 30, 2023 (ROPS 22-23) totals $4.4 million and includes an administrative allowance of $230,000,
which costs are itemized in the associated Administrative Budget. Upon approval of this ROPS and the
Administrative Budget, staff will submit them to the County of San Diego Countywide Redevelopment
Successor Agency Oversight Board for its January 20, 2022 meeting. ROPS 22-23 is due to the State
Department of Finance by February 1, 2022. Please see the attached staff report for further details
regarding the ROPS.
COUNT NO.
APPROVED: Finance
APPROVED: MIS
If approved by the County Oversight Board and California Department of Finance, the revenue and
expenditures listed in the ROPS 22-23 will be reflected in the FY22-23 budget.
Pursuant to Title 15 of the California Code of Regulations, Section 15378(b)(4), this item is not subject to the California
Environmental Quality Act review because the recommended approvals are not considered a project and are governmental funding
mechanisms and fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant
environmental impact.
ORDINANCE: INTRODUCTION: I I FINAL ADOPTION:
Adopt the resolution and direct staff to take all necessary steps to submit the ROPS 22-23 and
Administrative Budget to the Countywide Oversight Board and subsequently to the State of California.
NA
1. Staff Report
2. Resolution with Exhibit "A° (ROPS 22-23) and Exhibit °B° (ROPS 22-23 Administrative Budget)
5of13
Recognized Obligation Payment Schedule (ROPS 22-23)
Summary for the July 1, 2022 through June 30, 2023 Period
Successor Agency: National City
County: San Diego
Currrent Period Requested Funding for Enforceable 22-23A Total(July- 22-23B Total
ROPS 22-23 Total
Obligations (ROPS Detail) December) (January -June)
A Enforceable Obligations Funded as Follows (B+C+D)
B Bond Proceeds
C Reserve Balance
D Other Funds
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G)
F RPTTF
G Administrative RPTTF
H Current Period Enforceaable Obligations (A+E)
Certification of Oversight Board Chairman:
Pursuant to Section 34177 (o) of the Health and Safety code, I
hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named successor
agency.
/s/
$ 3,910,416
$
521,394
$
4,431,809
3,795,416
115,000
406,394
115,000
4,201,809
230,000
$ 3,910,416
$
521,394
$
4,431,809
Name
Title
Signature
Date
6of13
i:100:u 3rra
National City Successor Agency
Recognized Obligation Payment Schedule (ROPS) 22-23 Excel Format
Funding Sources ROPS 22.23A
(Jul - Dec)
Funding Sources ROPS 22-23B (Jan - Jun)
Redevelopment
a eve opmen
Total Outstanding
Property Tax
Property Tax
Debt or
ROPS 22-23
Bond
Reserve
Other
Trust Fund
Admin
ROPS 22-23A
Bond
Reserve
Other
Trust Fund
Admin
ROPS 22-23B
Item #
Project Name/Debt Obligation
Obligation Type
Payee
Obligation
Retired
Total
Proceeds
Balance
Funds
(RPTTF)
RPTTF
Total
Proceeds
Balance
Funds
(RPTTF)
RPTTF
Total
Totals
41,264,094
4,431,809
3,795,416
115,000
3,910,416
406,394
115,000
521,394
12
WI-TOD (DDA/Co-Op/Bond
OPA/DDA/Construction
City of National
-
Y
-
-
-
Docs/Other Grants)
City/EnSafe
13
WI-TOD (DDA/Co-Op/Bond Docs/Other
OPA/DDA/Construction
City of National
Y
-
-
Grants)
City/DTSC
87
Personnel and Admin Costs
Admin Costs
City of National City
250,000
N
230,000
-
115,000
115,000
115,000
115,000
110
Environmental Monitoring for CDC
OPA/DDA/Construction
County of San Diego
Y
-
-
Properties
111
Environmental Monitoring for CDC
Remediation
GeoSyntec
-
Y
Properties
Consultants
128
Contract for Financial Analysis
Fees
NHA Advisors
4,500
N
4,000
-
4,000
4,000
144
Contract for Legal Services
Legal
Kane, Ballmer, &
Y
-
Berkman
146
Contract for Legal Services
Legal
Dipper & Varco, LLP/
Y
-
Richard Opper
147
Contract for Legal Services
Legal
Christensen & Spath,
Y
-
LLP
162
Bonds
Fees
Bank of New York
44,000
N
4,000
4,000
4,000
167
Contract for Legal Services
Legal
Meyers Nave
Y
Hoffman Riback
Silver & Wilson
176
Unforseen SA remediation cost
OPA/DDA/Construction
Paradise Creek
Y
-
obligation - estimated additional costs
Housing Partners
Phase II WI-TOD
179
Joint Defense and Cost Sharing
Litigation
City of National
10,000
N
10,000
-
10,000
10,000
Agreement with respect to the
City/City of Lemon
Affordable Housing Coalition of San
Grove/Colantuono,
Diego County v. Sandoval at al case
Highsmith &
Whatley, PC
180
2017 Tax Allocation Refunding Bond -
Refunding Bonds Issued
Bank of New York
34,078,000
N
2,996,000
-
2,996,000
2,996,000
Series A Principal Payment
After 6/27/12
Mellon Trust
Company, N. A.
181
2017 Tax Allocation Refunding Bond -
Refunding Bonds Issued
Bank of New York
4,714,890
N
811,242
424,271
424,271
386,971
386,971
Series A Interest Payment
After 6/27/12
Mellon Trust
Company, N. A.
182
2017 Tax Allocation Refunding Bond -
Refunding Bonds Issued
Bank of New York
1,858,000
N
212,000
-
212,000
212,000
Series B Principal Payment
After 6/27/12
Mellon Trust
Company, N. A.
183
2017 Tax Allocation Refunding Bonds -
Refunding Bonds Issued
Bank of New York
180,824
N
41,347
21,924
21,924
19,423
19,423
Series B Interest Payment
After 6/27/12
Mellon Trust
Company, N. A.
184
Bonds
Fees
US Bank
-
Y
-
-
185
Bonds
Fees
US Bank
Y
-
-
186
CDTFA Hazardous Waste Generator
Fees
City of National City
123,880
N
123,220
123,220
123,220
Fee
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W:/:Il:i111r_1
National City
Recognized Obligation Schedule (BOPS 22-23) - Notes
July 1, 2022 through June 30, 2022
Item #
Notes/Comments
179
This case continues to be in litigation and there is no certainty regarding when it will reach a final
conclusion. $10,000 is requested in this ROPS for the Agency's potential share of costs should the
case continue into the ROPS 22-23 period.
186
On May 11, 2021 CDTFA notified the City that a hazardous waste generator fee was due for
the period of January 1, 2019 through December 31, 2019 for hazardous waste generated at
the Paradise Creek Park site undergoing environmental remediation pursuant to ROPS Item
#176. The letter from CDTFA indicated that the City owed a fee of $95,660 plus interest of
$6,217.88 and a penalty of $9,566.00 for a total of $111,443.88. None of the parties
involved in the remediation work were aware of the requirement to pay this fee and the
Successor Agency had no authority to pay this fee under ROPS 20-21 or ROPS 21-22. The
City has been in discussions with CDTFA and has paid the fee portion of the billing on behalf
of the Successor Agency, but it appears unlikely that CDTFA will waive any of the remaining
liability. This item would reimburse the City for this unanticipated cost.
MA:jrarra
Report of Cash Balances
Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or
A
B
C D E F G
H
Fund Sources
Bond Proceeds
Reserve Balance
Other Funds
RPTTF
Prior ROPS RPTTF
and Reserve
Rent,
Non-Admin
ROPS 19-20 Cash Balances
Bonds issued on or
Bonds issued on or
Balances retained
Grants,
and
(07101/19 - 06/30120)
before 12/31/10
after 01/01/11
for future period(s)
Interest, etc.
Admin
Comments
1
Beginning Available Cash Balance (Actual 07/01/19)
E1 = total SA beginning cash less OF cash
RPTTF amount should exclude "A" period distribution amount
($631,091) from 18-19 PPA, less ROPS 19A-20
RPTTF distribution, and less PPA of $227,726
8,382
7,142,239
631,091
227,726
applied to R19-20
2
Revenue/income (Actual 06130/20)
RPTTF amount should tie to the ROPS 19-20 total distribution from the
G2 = ROPS 19-20A ($4,361,655) + ROPS 19-
Count Auditor -Controller
13
215,238
4,972,019
20B ($610,364)
3
Expenditures for ROPS 19-20 Enforceable Obligations
(Actual 06/30120)
6,930
1 2,255,407
0
4,652,231
4
Retention of Available Cash Balance (Actual 06130120)
E4 = amount of RB applied to ROPS 20-21 and
RPTTF amount retained should only include the amounts distributed as
21-22 by DOF and SA; F4 = sum of $158,652
reserve for future period(s)
and $248,703 applied by DOF to R20-21 and
4,877,553
407,355
R21-22, respectively
5
ROPS 19-20 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 19-20 PPA form
No entry required
submitted to the CAC
547,514
6
Ending Actual Available Cash Balance (06130/20)
C to F= 1+2-3-4 G= 1+2-3-4-5
$ 0
$ 1,465
$ 9,279
$ 438,974
$ 0
Exhibit B
Successor Agency to the Community Development Commission
as the National City Redevelopment Agency
Administrative Budget: ROPS 22-23A and 22-23B
Expenditures (Estimated Amounts per GC 34177(j)(1))
Personnel*
City Manager/Executive Director
Executive Secretary
Executive Assistant
City Attorney
Executive Assistant
City Clerk/Records Management Officer
Executive Secretary
Community Development Manager
Real Property Agent
Administrative Services Director
Financial Services Officer
Budget Manager
Financial Analyst (part time)
Senior Accountant
Accountant
Accountant
Buyer
Budget Technician
Accounting Assistant
Various as needed
Total Personnel
Maintenance & Operations
Six Month Cost
Six Month Cost
F
Admin Budget
Admin Budget
% Allocated
Annual Cost
ROPS 22-23A
ROPS 22-23B
326,190
93,270
113,920
286,120
107,020
139,220
89,370
142,760
119,710
225,120
159,910
155,240
58,000
116,800
103,590
103,590
88,260
90,380
76,980
Professional Services
Internal Service Charges
Miscellaneous Expenditures (supplies, equipment use, etc)
Total M&O
Total Expenditures
Funding Sources
RPTTF - Administrative Allowance
Total Funding Sources
5%
16,309.50
8,155
8,155
5%
4,663.50
2,332
2,332
5%
5,696.00
2,848
2,848
5%
14,306.00
7,153
7,153
3%
3,210.60
1,605
1,605
8%
11,137.60
5,569
5,569
8%
7,149.60
3,575
3,575
5%
7,138.00
3,569
3,569
10%
11,971.00
5,986
5,986
3%
6,753.60
3,377
3,377
3%
4,797.30
2,399
2,399
4%
6,209.60
3,105
3,105
65%
37,700.00
18,850
18,850
5%
5,840.00
2,920
2,920
2%
2,071.80
1,036
1,036
4%
4,143.60
2,072
2,072
1%
882.60
441
441
3%
2,711.40
1,356
1,356
4%
2,980.00
1,490
1,490
N/A
31,928.00
15,964
15,964
187,600
93,800
93,800
14,400
7,200
7,200
23,000
11,500
11,500
5,000
2,500
2,500
42,400
21,200
21,200
230,000 115,000 115,000
230,000 115,000 115,000
230,000 115,000 115,000
* Personnel responsibilities include, but are not limited to, providing executive direction and legal guidance for the
operations of the SA, scheduling and maintaining records of the meetings of the Successor Agency, preparing agenda
materials for the SA Board, managing litigation, developing the ROPS for each annual period, projecting and managing
the cash flow of the SA, managing contracts with service providers, executing the Long Range Property Management
Plan, managing the payments to vendors, accounting for all transactions of the SA in the general ledger, and preparing
annual financial statements. Not represented on this schedule, but playing an important policy role in the administration
of the Successor Agency, are the City's Mayor and Council Members who serve as the Board for the Successor Agency.
All personnel costs are estimates and exclude overhead costs.
CALIFORNIA �+
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� INCpRPORATED
CITY OF NATIONAL CITY
SUCCESSOR AGENCY STAFF REPORT
December 7, 2021
Item:
Resolution of the Board of the Successor Agency to the Community Development Commission
as the National City Redevelopment Agency Approving the Recognized Obligation Payment
Schedule (ROPS) for the Period July 1, 2022 through June 30, 2023 (ROPS 22-23) with
Expenditures Totaling $4,431,809, Approving the Associated Administrative Budget of $230,000,
and Authorizing the Submittal of Both to the County of San Diego Countywide Redevelopment
Successor Agency Oversight Board
Background:
Effective February 1, 2012, all redevelopment agencies in California were dissolved and
"successor agencies" were established to wind down the affairs of the former redevelopment
agencies under the direction of oversight boards. Health and Safety Code Section 34177 requires
successor agencies to perform a number of functions, one of which is to prepare a Recognized
Obligation Payment Schedule (ROPS) before each fiscal period that details amounts required to
be spent and the source of funds for those expenditures. Each successor agency must submit
the ROPS to its oversight board for approval, after which it is forwarded for review and approval
to the State Department of Finance, with copies to the County Auditor and Controller and State
Controller's Office. The San Diego County Oversight Board will consider the Agency's ROPS at
its January 20, 2022 meeting. ROPS 22-23 is due to the State Department of Finance by
February 1, 2022. In addition, successor agencies are required to prepare and submit to the
oversight board an administrative budget that details the estimated administrative costs for each
upcoming ROPS period.
Even though the ROPS covers an entire fiscal year, the standardized form distributed by the State
Department of Finance (DOF) requires that obligation payment amounts be assigned to either the
"A" portion of the fiscal year (July through December) or the "B" portion of the year (January
through June). The assignment of expenses to one half or the other of the fiscal year is designed
not to restrict when authorized amounts may be spent during the fiscal year, but to facilitate the
distribution of redevelopment property tax trust fund (RPTTF) monies, the primary source of
funding for the ROPS. RPTTF monies are distributed on June 1 and January 2 by the County
Auditor and Controller; the June 1 distribution applies to expenditures expected to occur during
the "A" portion of the upcoming ROPS cycle, while the January 2 distribution provides cash for
the second half ("B" portion) of the fiscal year.
Should changes to the ROPS be necessary, each successor agency is allowed to amend the
approved ROPS one time per ROPS period. The amendment must be submitted to DOF by
National City Successor Agency
December 7, 2021
Staff Report: ROPS 22-23
October 1, and successor agencies may amend only the amounts requested for payment of
approved enforceable obligations that fall within the "B" portion of the year; no new obligations
can be created through the amendment process.
Discussion:
The proposed Recognized Obligation Payment Schedule for the July 1, 2022 through June 30,
2023 (ROPS 22-23) period for the National City Successor Agency, attached as Exhibit A to the
resolution, totals $4.4 million. Of that amount, $3.9 million is allocated to the first half of the fiscal
year and $0.5 million to the second half of the fiscal year. (Note: The ROPS schedules attached
to the resolution are in the form of the anticipated schedules to be issued by the State Department
of Finance. These schedules must be completed on DOF's website. Once they are available,
staff will enter the amounts shown in Exhibit A.)
Enforceable obligations for the ROPS 22-23 period may be grouped into the following categories:
Debt service: In September 2017 all of the Successor Agency's outstanding tax allocation bonds
(Series 1999, 2005B and 2011) were refunded to reduce future debt service costs on the bonds.
For the ROPS 22-23 period, debt service payments on the 2017 refunding bonds will total $4.06
million (Items 180 — 183). Overall, the refunding bonds will result in an annual average debt
service savings of $1.0 million through final maturity in August 2032. Annual Trustee and financial
reporting fees related to the bonds are expected to total $8,000 (Items 128 and 162).
Administrative Cost Allowance and Administrative Budget: The administrative cost allowance is
governed by Health and Safety Code (HSC) section 34171 (b) and is calculated based on what
is termed "the adjusted Redevelopment Property Tax Trust Fund (RPTTF) distribution" from the
prior year. The adjusted RPTTF distribution equals the RPTTF revenue distributed for the prior
ROPS year less the prior year's authorized administrative cost allowance (ACA) and less any city
loan repayments. This adjusted RPTTF amount is then multiplied by 3%. The 2021-22 adjusted
RPTTF for the National City Successor Agency is $2,524,128. When multiplied by 3%, it would
result in an ACA for ROPS 22-23 of $75,725. This calculated amount is less, however, than the
minimum provided for in redevelopment dissolution law. The minimum ACA is $250,000 annually,
but may not exceed 50% of the adjusted RPTTF distribution. Based on the foregoing information
and the estimated administrative costs, ROPS 22-23 requests $230,000 for the ACA. The
Administrative Budget, attached as Exhibit B to the resolution, details the estimated administrative
expenditures for the ROPS 22-23 period.
Legal Services: The Successor Agency has only one litigation matter remaining: the Affordable
Housing Coalition v. Sandoval, et al case. In July, 2013, the Affordable Housing Coalition of San
Diego County filed a lawsuit in the Sacramento County Superior Court against the City of National
City in its capacity as the Successor Agency to the Community Development Commission of
National City, as well as other cities/successor agencies in San Diego County, claiming that 1)
the statutes under the former Redevelopment Law imposing affordable housing obligations upon
redevelopment agencies created enforceable obligations under the redevelopment dissolution
statutes, and 2) if enforceable obligations were not created, the dissolution statutes
unconstitutionally impaired the obligations of contracts. In September, 2016, the Court ruled
against the petitioner and in favor of the respondent cities/successor agencies. Judgment based
upon this ruling was entered in November, 2016, but the ruling was appealed and is still in the
appeal process.
National City Successor Agency
December 7, 2021
Staff Report: ROPS 22-23
The cost of the litigation was originally being shared by eight agencies, but after a change during
this past year in the arrangement for outside counsel for this matter, the costs are now being
shared by ten agencies. ROPS 22-23 requests $10,000 for this item because it is uncertain when
the case will reach a conclusion.
Other Costs: Earlier in 2021 the California Department of Tax and Fee Administration (CDTFA)
notified the City that a hazardous waste generator fee was due for the period of January 1, 2019
through December 31, 2019 for hazardous waste generated at the Paradise Creek Park site
undergoing environmental remediation pursuant to ROPS Item #176. The letter from CDTFA
indicated that the City owed a fee of $95,660 plus interest and penalties of $28,220.00 for a total
of $123,220. None of the parties involved in the remediation work were aware of the requirement
to pay this fee and the Successor Agency had no authority to pay this fee under ROPS 20-21 or
ROPS 21-22. The City has been in discussions with CDTFA and has paid the fee portion of the
billing on behalf of the Successor Agency, but it appears unlikely that CDTFA will waive any of
the remaining liability. This item would reimburse the City for this unanticipated cost.
Recommendation:
Adopt the resolution and authorize staff to take all necessary actions to submit the ROPS 22-23
and associated Administrative Budget to the County of San Diego Countywide Redevelopment
Successor Agency Oversight Board for approval and subsequently to the State and the County
as required by redevelopment agency dissolution law.
Fiscal Impact Statement:
The expenditures for the items listed on ROPS 22-23 total $4.4 million, all of which is proposed
to be funded from RPTTF. The amount of new RPTTF projected to be available to the Successor
Agency for ROPS 22-23 is $20.4 million. If RPTTF funding projections are correct and if all of the
items on the ROPS proposed to be funded by RPTTF are approved, approximately $16.0 million
would be available for distribution to the affected taxing entities as residual balance, of which the
City of National City's share would be approximately $2.9 million.