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HomeMy WebLinkAbout2012/01/24 Item 07CITY COUNCIL REDEVELOPMENT AGENCY AGENDA STATEMENT \L~ CITY OF "'- = CHULA VISTA JANUARY 24, 1012, Item~_ ITEM TITLE: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO ASSEMBLY BILL Xl 26, DIVISION 24, PART 1.8, SECTION 34169(g)(1) OF THE CALFORNIA COMMUNITY REDEVELOPMENT LAW SUBMITTED BY: ASSISTANT CITY MANAGER/DEVELOPMENT SERVICES DIRECTOR ~ ~ ~y• REVIEWED BY: CITY MANAGER 4/STHS VOTE: YES ~ NO SUMMARY Assembly Bill xl 26 was upheld by the California Supreme Court on December 28, 2011. This bill abolishes redevelopment agencies effective February 1, 2012. In upholding AB xl 26, the Supreme Court reformed certain deadline dates. Accordingly, staff has prepared the Enforceable Obligation Payment Schedule ("EOPS") to set forth all of the Agency's obligations determined to be enforceable obligations under Section 34167(d), Health and Safety Code. Staff recommends that the Agency adopt the attached Resolution and the accompanying EOPS in Exhibit A. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Approve the resolution. 7-1 January 24, 2012 Item Z Page 2 BACKGROUND On December 29, 2011, the California Supreme Court ("Court") upheld AB xl 26 ("Dissolution Act") dissolving California redevelopment agencies ("RDA") and determined that AB xl 27 was unconstitutional, thereby removing any opportunity for agencies to participate in the Alternative Redevelopment Program Act. The Court also pushed back the deadlines for the Dissolution Act. Therefore, effective February 1, 2012, all RDA's will be dissolved, and the City of Chula Vista will assume the role of "Successor Agency" approved on August 26, 2011, via resolution by the City Council and RDA. An Oversight Board and the County Auditor-Controller will assume responsibility for oversight of the Successor Agency. Subject to the approval of the Oversight Board, an administrative allowance of up to five percent of the 2011-12 property tax will be allocated to the Successor Agency to fund administrative costs to wind down the affairs of the RDA. In subsequent years, the administrative allowance will be reduced to three percent per year. The act of winding down the RDA's affairs will be significant. The Successor Agency will continue to oversee and implement all legally obligated contracted work, projects and programs, as well as dispose of the RDA's former assets. As 68% of the RDA-owned land (24 acres of 35.24 acres) is contaminated there aze clean up requirements as well as remediation that will be necessary to dispose of these properties. Significant administrative obligations will exist in the prepazation of budgets and documentation to be reviewed by the Oversight Boazd and the County Auditor-Controller. An Oversight Board will be comprised of seven members, representing various taxing entities, and must establish its membership by May 1, 2012. Each member will be appointed by its representing organization. The Oversight Board is deemed a local agency for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. The primary responsibility of the Oversight Board is to approve the actions of the Successor Agency, establish the Recognized Obligation Payment Schedule ("ROPS") and will have fiduciary responsibilities to holders of enforceable obligations. The City of Chula Vista will be able to appoint two members to the Oversight Boazd. The County Auditor Controller will primazily be responsible for auditing the RDA's assets, liabilities and tax-sharing obligations and determining the amount and terms of indebtedness. The City of Chula Vista Housing Authority will assume the housing functions of the former RDA, becoming a "Successor Housing Agency. It is anticipated that there will be incremental revenue in the future from loan repayments for new housing projects and related administration of ongoing activities. There are many deadlines and obligations in the coming months. The action of amending and approving the FOPS is the final action of the Redevelopment Agency before it is dissolved. The Successor Agency staff will be responsible for completing the majority of remaining actions to wind down the RDA. 7-2 January 24, 2012 Item Page 3 DISCUSSION On August 26, 2011, the City Council approved a resolution approving and adopting the Enforceable Obligation Payment Schedule ("EOPS") pursuant to Assembly Bill X1 26, Division 24, Part 1.8, Section 34169(g)(1) of the California Community Redevelopment Law. Although the requirement to approve and adopt an EOPS has already been met, staff is presenting this revised EOPS to set forth all of the Agency's obligations determined to be enforceable obligations under Section 34167(d). The enforceable obligation schedule is a key document in complying with AB X1 26 and is required to contain all the obligations of the Agency and be listed with specific payment schedules. Enforceable Obligations consist of bonds, loans, payments required by governments (except pass-through payments), court judgments and settlements, legal contracts and agreements and contracts necessary for continued administration. After Februazy 1, 2012, no changes may be made to the EOPS. After the adoption of the EOPS, the Redevelopment Agency and the Successor Agency cannot make any payments not listed on the EOPS. DECISION MAKER CONFLICT The proposed action is not site-specific nor does it involve approving the underlying items listed in Exhibit A, and as such, no conflicts have been identified. CURRENT YEAR FISCAL IMPACT The Enforceable Obligation Payment Schedule identifies all of the Agency's obligations determined to be enforceable obligations, in the current fiscal year, under Section 31467(d). ONGOING FISCAL IMPACT The fiscal impact of the elimination of the Redevelopment Agency will impact the Agency's ability to provide the financial resources to assist in the implementation of the Chula Vista Bayfront Master Plan, the creation of the Main Street Streetscape Master Plan and provide the $2.5 million in additional funding for the Third Avenue Streetscape Master Plan. ATTACHMENTS A. Enforceable Obligation Payment Schedule ("EOPS") Prepared by: Diem Do, Senior Project Coordinator Development Services Department 7-3 Attachment A: Enforceable Obligation Payment Schedule (FOPS) Will be provided on the dias 7-4 RESOLUTION NO. 2012- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO ASSEMBLY BILL Xl 26, DIVISION 24, PART 1.8, SECTION 34169(g)(1) OF THE CALFORNIA COMMUNITY REDEVELOPMENT LAW WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") is organized and existing pursuant to the California Community Redevelopment Law (Health and Safety Code § 33000, et seg.; hereinafter, the "CRL") and is responsible for the administration of redevelopment activities within the City of Chula Vista; and WHEREAS, the City Council of the City of Chula Vista ("City") approved and adopted a Redevelopment Plan ("Redevelopment Plan") covering the Merged Bayfront/Town Centre I and Merged Chula Vista project areas ("Project Areas") within the City of Chula Vista; and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Areas to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; and WHEREAS, Parts 1.8, 1.85, and 1.9 of Division 24 of the CRL were added by Assembly Bill Xl 26 ("2011 Redevelopment Legislation"), which is a part of multiple trailer bills to the FY 2011-2012 California budget bills that were approved by both Houses of the State Legislature on June 15, 2011 and signed by the Governor on June 28, 2011; and WHEREAS, the California Supreme Court upheld the 2011 Redevelopment Legislation in its decision in California Redevelopment Association, et al v. Ana Matosantos, et al ("CRA Action") and reformed certain deadline dates or deadlines for performance of obligations arising from part 1.85 of Division 24 of the Health and Safety Code; and WHEREAS, Section 34169(g)(1) in Part 1.8 mandates that every redevelopment agency adopt an "Enforceable Obligation Payment Schedule" ("EOPS"); and WHEREAS, the EOPS lists all of the obligations that are enforceable within the meaning of subdivision (d) of Section 34167 that includes the following information about each obligation: (A) the project name associated with the obligation, (B) the payee, (C) a short description of the nature of the work, product, service, facility, or other thing of value for which payment is to be made, and (D) the amount of payments obligated to be made, by month, through December 2011; and WHEREAS, the deadline to adopt the EOPS was August 28, 2011; and 7-5 Resolution No. Page 2 WHEREAS, the City of Chula Vista and Chula Vista Redevelopment Agency did adopt an initial FOPS on August 25, 2011; WHEREAS, the EOPS is being revised to reflect up-to-date information regarding all of the obligations that are enforceable within the meaning of subdivision (d) of Section 34167 for the time period of January 2012 through June 2012 WHEREAS, by this Resolution the Agency's Executive Director and Treasurer have caused to be prepared an EOPS, and by this Resolution the Agency approves such Enforceable Obligation Payment Schedule and authorizes the transmittal of the EOPS to the Department of Finance and the County Auditor-Controller and will post it on the Agency's website; and WHEREAS, the Agency's EOPS, which is consistent with the requirements of § 34169(g) of the CRL, is attached to this Resolution as Exhibit A; and WHEREAS, the Agency reserves its right to amend the EOPS as may be necessary to capture all the enforceable obligations the Agency may have in the performance of its duties; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista as follows: Section 1. The foregoing Recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. Pursuant to CRL 34169, the Agency hereby adopts its Enforceable Obligation Payment Schedule attached hereto as Exhibit A and fully incorporated by this reference. The EOPS is that "Enforceable Obligation Payment Schedule" referred to in CRL Section 34169(g) and shall be interpreted and applied in all respects in accordance with such section and the CRL, to the fullest extent permitted by law; however, the EOPS shall only be applicable to and binding on the Agency to the extent that Part 1.8 is applicable to the Agency. Section 3. The Executive Director and Treasurer of the Agency (and their designees) are hereby authorized and directed to evaluate potential amendments to the EOPS from time to time as may be appropriate and/or as required by the 2011 Redevelopment Legislation whether pursuant to its terms, by court order, or as otherwise required by law and to recommend to the Agency the adoption of those amendments necessary for the continued payment on and performance of enforceable obligations. Section 4. The Executive Director of the Agency is further authorized and directed to cause to be posted the EOPS on the City's (Agency's) website pursuant to Part 1.8 and to notify the County Auditor-Controller and the State Controller's Office concerning this Resolution, EOPS, and its online publication. 7-6 Resolution No. Page 3 Section 5. This Resolution shall take effect upon the date of adoption. Section 6. The Agency Secretary shall certify to the adoption of this Resolution. Presented by Jim Sandoval Executive Director Chula Vista Redevelopment Agency Approved as to form by Glen R. Googins City Attorney 7-7 Name of Redevelopment Agency: City of Chula Vista Redevelopment Agency Project Area(s) All ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 -Section 34169(h)' Payments by month ~ Project Name /Debt r Obligation Payee Description Jan Feb Mar Apr May June r r r. az oca ion on issue o re un ax oca ion on s 1) Refunding Bonds Series A US Bank Series A 246,572.50 $ 248,572.50 u ax oca ion on issue o re un ax oca ion on s 2) Refunding Bonds Series B US Bank Series C 8 D. 265,516.88 $ 265,516.88 ax on 3) Refunding Bonds US Bank Bond issue to refund 2000 Tax Allocations Bontls 466,818.13 $ 486,818.13 oan rogram oan aya e o 2005 Tax Revenue Bond Statewide Community Development Authomy for q) Series A Wells Fargo FV0405 ERAF payment 49,177.00 $ 49,177.00 oan rogram oan aya e o 2006 Tax Revenue Bond Statewide Comm Dev Authority for FY0506 ERAF 5) SeriesA Wells Fargo payment. 63,026.00 $ 63,026.00 6) 2003 Refunding COP US Bank Issued by CVPFA to tlefease the 1993 Certficales 25,087.50 $ 25,08750 e ervice - si a or oensure enoug revenues are avaia a or eac 7) 2006 TABS, Series A US Bank semi-annual payment due in FV2012-13 1,014,995.00 $ 1,014,995.00 e ervice - si a or oensure enoug revenues are avai a e or eac 8) 2006 TABS, Series B US Bank semi-annual payment due in FV2012-i3 990,233.76 $ 990,233.76 e ervice e- si a or oensure enoug revenues are avaia a or eac g) 2008 TABS US Bank semFannual payment tlue in FY2012-13 963,636.26 $ 963,636.26 e ervke e - s e or oensure enoug revenues are avai a e or eac 10) 2005 Tax Revenue Bond Wells Fargo semi-annual payment due in FV2012-13 99,526.00 $ 99,526.00 e ernce - s e or oensure enoug revenues are avai a e or eac 11) 2006 Tax Revenue Bond Wells Fargo semi-annual payment tlue in FY20t2-13 125,784.00 $ 725,784.00 e ervice e- si a or oensure enoug revenues are avai a e or eac 12) 2003 Refunding COP US Bank semi-annual payment due in FV2012-13 1,054,437.50 $ 1,054,437.50 y oan or 13) Debt Service Cdyof Chula Vista Loan for 96 ABAG 37A debt service FV98-FV03 $ Loan to Bayfronl for (omnalion cost of RDA Public tq) Cdy Loan for 501c3 Formation Cityof Chula Vista Benefd Corp (501c3) per Resop 2004-363 $ y oan or a un trig oan o own en er or a un mg e 15) COP Debt Service Cilyof Chula Vista service FV03-FY07 700,000.00 $ 700,000 00 City Loan for 93 COP Parking Loan to Town Center II for 93 COP Parking Phase 2 16) Phase 2 Debt Service Cilyof Chula Vista debt service FY96-FY07. $ ow e e Inwme Housing 17) LMIHF Loan for SERAF Fund Loan to pay BERAF tlue FY10 8 FYt 1 $ ow era e Debt Service Overpayment by Income Housing Reimbursement for overtunding debt service t8) LMIHF Fund payments forlhe 1994 TABS $ uccessor gency 19) Administration Successor Agency Administration of the Successor Agency 57,692.31 66,536.46 57,692.31 57,692.31 57,692.31 $ 317,307.70 20) minis ra ion y o u a i a minis ra ion cos s or en orcea e o iga ions 40,000.00 $ 40,000.00 oun y o an oun y o an sego props y ax incremen 21) County Atlmin. & Svc. Fee Diego atlminislrative and service fees 152,338.00 $ 152,338 00 0o nc eoce ion oo nc 22) Agreement Aerosiructures Assistance wRh relocation of BF Goodrich facilities $ ssi once enmronmen a reme is ion BF Goodrich Cooperation Goodrich activities, air quality meigafien, 8 qualifying 23) Agreement Aerostructures investments 300,000.00 $ 300,000.00 miser army greemen egar mg ossessory neres 2q) Park Ptaza Parking Structure Properties Inc Valorem Property Taxes on Parking Structure 17,500 00 17,500.00 $ 35.000 00 Name of Redevelopment Agency: Clty of Chula Vista Redevelopment Agency Project Area(s) All ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 -Section 34169(h) Payments by month Project Name / Debl Obligation Peyee Description Jan Feb Mar Apr May June Implementation of (he Chula Vista Bayfront Master Plan and approval by Cal'domia Coastal 25) Perry Dealy GOntrect Pem/Dealy Commission 3,591.75 3,591.75 3,591.75 3,591.75 3,591.75 $ 17,958.75 To provide asneeded environmental consulting for re-designation of benehdal uses M groundwater in 26) P38815 Bayfront Groundwater SCS Engineers ga root $ To provide censutting for the development 8 negotiation of processess, structures, approvals, 8 Dennis Sfone agreements necessary for the implementation of the 27) P44011BayfroM Master Plan Consulting Inc Bayrrom Master Plan 10,000.00 10,000.00 6,600.00 $ 26,600.00 To provide Software License Agreement for AftoMable Housing Compliance gBOMable Housing Monitoring pursuant to CA H85 28) Compliance Montoring Services 33418 4,408.00 $ 4,408.00 r a e ousing osenow pevace To provide on Bile monitoring review pursuant to CA 29) Compliance Monttonng Group Inc H8S 33418. 7,770.00 $ 7,770.00 o a ousing o prov a moo onng or exis rig prole s an 30) Compliance Montoring Chy StafF programs 11,55000 11,55000 $ 23,100.00 o a e ousing eyser a on 7o provide residual receipt monltonng review 31) Compliance Monitoring Assodales ursuaM to CA H8S 33418 12,000.00 12,336.D0 $ 24,336.00 32) P44011 Bayfronl Master Plan OpperB Varco LLP POlanco ACl Atlomeys 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 $ 30,000.00 o a ign n-ca speua ins on enwronmen a 33) Project Law Gibb Group consultant services per Ccundl Reso 2009-063 1,042.44 $ 1,04244 opier 34) Maintenance O~ua Imaging Inc Copier maintenance, quarterly 231.11 231.12 $ 462.23 35) Lease Finandal Leasing Copier Lease 1,903.17 $ 1,903.17 36) P43465 Office Suplies Staples Advantage Office suDPlies and ropy paper 946.40 $ 946.40 37) Insurance Costs Alliant Insurance Publk Liability Insurance Premium 11,OD0.00 $ 11,OOD.00 38) Landings II Landings II, LP Construction of affomable housing units g Henry Alex Valino Chavez General Resdential Revitalization Pilot Program 21,445.90 39) Con(radin $ 21,445.90 40) Ismael and An eta Hueria Mocard Inc. Residential Revltalvation PiIM P ram 30,000 $ 30,000.00 41) Ma arita Peru Mowrd Inc. Residential Revltalvation Pilot P ram 30000 $ 30,000.00 EPA Brownfrelds SCS Engineers Environmental Consulting Services as pan of EPA Communttywide Assessment Brownfelds Grant 42) Grant 6,731.D0 75,000.00 10,000.00 10,000.00 20,000.00 10,000.00 $ 71,731.00 43) Ba root Groundwater SCS En ineers Environmental Consultin Services $ usiness mprovemen ran Wesl Broadway Storefront Improvement $ 15,000 $ 10,000 $ 5,000 qb) Program Investors, LLC $ 30,000.00 Onstage Playhouse Storefront Improvement $ 5,000 $ 10,000 $ 5,000 Business Improvement Gmnt (getsy Keller) 45) Program $ 20,000.00 Modezuma Building Storefront Improvement $ 75,000 $ 5,000 $ 5,000 $ S,OOD Business Improvement Grant (Etlgardo 46) Program Moctezuma $ 30,000.00 uvness mprovemen ran Mangia Italiano Storefront Improvement $ 12,000 $ 3,700 47) Progmm Adam S rks $ 15,100.00 usiness Improvement rant EI Pnmero Boutique Storefront Improvement $ 9,500 48) Progmm Hotel (Pie Roque) $ 9,500.00 usiness mprovemen ren Storefront Improvement $ 10,000 $ 10,000 $ 10,000 49) Program Chico's Bakery $ 30,000.00 usiness mprovemen ran Storefronllmprovement $ 10,000 $ 5,000 50) Program Broadway Liquor $15,000 Name of Redevelopment Agency: City d Chula Vista Redevelopment Agency Project Area(s) All ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 -Section 34169(h) ' Payments by month a Project Name I Debt r Obligation Payee Description Jan Feb Mar Apr May June us~ness mprovemen ran Storefront Improvement $ 5,000 $ 10,000 57) Program Eagle Liquor Market $15,000 usiness mprovemen ran arise a e an Storefront Improvement $ 10,000 $ 5,000 52) Program Liquor $15,000 usiness mprovemen ran Storefront Improvement $ 5,000 $ 10,000 53) Program Bobar MarketBGas $75,000 54) a omar a ev2y y o u a rs a Palomar Galewa District S igc Plan $ 75,000 $ 75,000 u a is a a ron as er i9 ions o prove a un ing o oin ower 55) Plan Settlement Agreement Cky of Cnula Vista Authority Section 3.4 $ - n men men a ion iga on o asses in a re o ion an 56) Agreement Ctly d Chula Vista redevelopment of South Campus $ - y o u a is a iga ion o a minis er assessmen gran un or 57) EPA BrownOelds Grant Others Phase I and Phase II investigations yo ua isa an az oca ion on procee s or 58) Capaal Improvemet Projed Contractors public infrastructure projects $ - yo ua is a, Consuhants 8 Environmental remediation in response to letter of 59) Shinohare Remediagon Contractors violation from County of San Diego $ Cay of Chula Vista, Opper and Varco antl Regional Water Quality Control Environmental agreement with RWOCB to provide 66) POIanLO Agreement Board (RWOCB) immuntlies to Bayfront developers $ - Memorandum of Understanding regaining payment of infrastructure or Cdy of Chula Vista 8 61) Construction Thereof Contractors Development Impact Fee Suspension program $ - Totals-This Page $ 874,82275 $ 970,965.19 8 529,152.10 $ 325,622.06 $ 4,373.832.58 $ 489,36544 $ 7,503,760.12 Totals -Other Obligations $ $ $ $ $ $ $ Grand total-All Pages $ 814,82275 $ 970,965.79 $ 529,752.10 $ 325,622.06 $ 4,373,832.58 $ 489,36544 $ 7,503760.12 ' This Enforceable Obligation Payment Schedule (FOPS) is to be atlopted by the redevelopment agency no later than January 37, 2012. h is valitl Nrough 6/30172. Include only paymems to be matle after the adoption of Ne FOPS.