Cynthia W. Johnston, Housing and Redevelopment Director Jeremy Craig, Finance and Information Technology Director

Transcription

1 Agenda Item No. 9A August 23, 2011 TO: FROM: SUBJECT: Honorable Chair and Agency Members Attention: Laura C. Kuhn, Executive Director Cynthia W. Johnston, Housing and Redevelopment Director Jeremy Craig, Finance and Information Technology Director RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW DISCUSSION: On August 9, 2011, the City Council enacted an ordinance committing itself to participate in a new Voluntary Alternative Redevelopment Program (as provided by AB X1 27). This program requires the Redevelopment Agency, on an annual basis, to pay voluntary contributions to school districts and special districts above and beyond the passthrough payments already required under California Redevelopment Law (FY voluntary contribution will be $11,421,697). Once the ordinance is effective (September 8, 2011), the Agency would be able to conduct new business and no longer subject to AB X1 26, which would have required that the Agency be dissolved effective October 1, On August 11, the California Supreme Court announced it would hear the lawsuit filed by the California Redevelopment Association (CRA) and the League of California Cities challenging AB 1X 26 and AB 1X 27 as violating Proposition 22, Article XVI, section 16 and other provisions of the California Constitution. The Court established an expedited briefing schedule designed to facilitate oral argument as early as possible in 2011, with a decision before January 15, 2012, the date that first half of voluntary contribution must be paid. The Court also issued a partial stay on AB 1X 26 and AB 1X 27 until it can rule on the constitutionality of the two bills. The Agency s legal advisors have provided guidance and are working with other redevelopment professionals and the CRA Legal Committee to seek further clarification on the effects of the stay. However, at this point, they are advising that the partial stay means that Agencies will not automatically be dissolved on October 1, 2011 (as provided by AB 1X 26); it also suspends AB X1 27. This means that the City cannot optin to the Voluntary Alternative Redevelopment Program ; it also prohibits the Agency from conducting new business and making any payment on any obligation (other than bonded debt) unless it is listed on an Enforceable Obligations Payment Schedule (EOPS) (adopted by August 29, 2011). Therefore, the Agency s legal advisors are recommending that the Agency adopt an EOPS, under protest and with reservation, to avoid defaulting on its enforceable obligations after August 29, The EOPS lists all of the Agency s obligations that must be paid between August and December 2011 and includes items such as bond and/or loan payments, judgments or settlements, staffing reimbursement, insurance, rent, supplies, etc. Attachment A is the list of Vacaville Redevelopment Agency s Enforceable Obligation Payment Schedule. Once the EOPS is adopted, it must be posted on the City s website and mailed or submitted by electronic means to the Solano County AuditorController, the State Controller s Office, and the State Department of Finance. Approval of the EOPS is exempt from California Environmental Quality Act ("CEQA") as the document is not a project, but a list of enforceable obligations previously entered into and approved by the Agency.

2 As previously reported there are other redevelopment reform legislations pending; as well as discussions regarding clean up of both AB X1 26 and 27. FISCAL IMPACT: Adoption of an Enforceable Obligation Payment Schedule will have no additional fiscal impact, as it is merely a statement of expenses already planned. However, as previously stated, elimination of redevelopment will result in a significant loss of funds that support City operations, including the General Fund. RECOMMENDATION: By simple motion, that the Redevelopment Agency of the City of Vacaville adopt the subject resolution. Attachment A: Enforceable Obligations Payment Schedule

3 RESOLUTION NO. RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF VACAVILLE APPROVING AND ADOPTING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section et seq.; the "Redevelopment Law"), the City Council (the "City Council") of the City of Vacaville (the "City") adopted, and has amended from time to time, in accordance with the Redevelopment Law, the Redevelopment Plans (collectively, the "Redevelopment Plan") for the Vacaville Community Redevelopment Project Area and the I505/I 80 Redevelopment Project Area (collectively, the "Project Area"); and WHEREAS, the Redevelopment Agency of the City of Vacaville (the "Agency") is responsible for implementing the Redevelopment Plan pursuant to the Redevelopment Law; and WHEREAS, AB x1 26 (the "Dissolution Act") and AB x1 27 (the "Voluntary Program Act," and together with the Dissolution Act, the "Redevelopment Restructuring Acts") have been enacted to significantly modify the Redevelopment Law; and WHEREAS, on August 11, 2011, the California Supreme Court agreed to review the California Redevelopment Association and League of California Cities petition challenging the constitutionality of the Redevelopment Restructuring Acts and issued an order granting a partial stay on specified portions of the Redevelopment Restructuring Acts (the "Stay"); and WHEREAS, under the terms of the Stay and pursuant to Section 34167(h) of the Redevelopment Law, after August 29, 2011, the Agency can only make payments on bond obligations until the Agency adopts an enforceable obligation payment schedule listing all of the obligations that are enforceable within the meaning of Section 34167(d) of the Redevelopment Law (the "Enforceable Obligation Payment Schedule"); and WHEREAS, as further set forth in the staff report accompanying this Resolution (the "Staff Report"), under the terms of various Agency contracts and obligations, the Agency is required to make payments on its enforceable obligations after August 29, 2011; and WHEREAS, to avoid defaulting under its enforceable obligations, the Agency has prepared and desires to adopt an Enforceable Obligation Payment Schedule, under protest and reserving the Agency s rights to recognize and perform any and all obligations listed therein without regard to the provisions of the Redevelopment Restructuring Acts; and WHEREAS, under Title 14 of the California Code of Regulations, Section 15378(b)(4), the approval of this Enforceable Obligation Payment Schedule is exempt from the requirements of the California Environmental Quality Act ("CEQA") in that it is not a project, but instead consists of the continuation of an existing governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program, because it merely lists enforceable obligations previously entered into and approved by the Agency; and WHEREAS, the Agency Board has reviewed and duly considered the Staff Report, the proposed Enforceable Obligation Payment Schedule, and documents and other written evidence presented at the meeting.

4 NOW, THEREFORE, BE IT RESOLVED, that the Agency Board finds that the above Recitals are true and correct and have served, together with the supporting documents, as the basis for the findings and approvals set forth below. BE IT FURTHER RESOLVED, that the Agency Board finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a project. The Agency Board therefore directs that a Notice of Exemption be filed with the County Clerk of the County of Solano in accordance with the CEQA guidelines. BE IT FURTHER RESOLVED, that the Agency Board hereby approves and adopts the Enforceable Obligation Payment Schedule under protest and with a reservation of its rights to perform any and all obligations listed therein without regard to the provisions of the Redevelopment Restructuring Acts and to challenge any contrary determination by the State of California, the County AuditorController or any other body under the provisions of the Redevelopment Restructuring Acts. BE IT FURTHER RESOLVED, that the Agency Board authorizes and directs the Agency's Executive Director or the Executive Director's designee to: (1) post the Enforceable Obligation Payment Schedule on the Agency or the City's websites, (2) designate an Agency representative to whom all questions related to the Enforceable Obligation Payment Schedule can be directed, (3) notify, by mail or electronic means, the County AuditorController, the Department of Finance, and the Controller of the Agency's action to adopt the Enforceable Obligation Payment Schedule and to provide those persons with the internet website location of the posted schedule and the contact information for the Agency's designated contact; and (4) to take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the Enforceable Obligation Payment Schedule on behalf of the Agency. BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. The above and foregoing resolution was duly and regularly passed and adopted at a meeting by the Agency Board on the day of August 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the Redevelopment Agency of the City of Vacaville, this day of August, Approved: Michelle A. Thornbrugh, Recording Secretary

5 Name of Redevelopment Agency Vacaville Redevelopment Agency Project Area(s) I505/80 Page 1 of Pages Attachment A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 Section and (*) Payments by month Total Outstanding Total Due During Project Name / Debt Obligation Payee Description Debt or Obligation Fiscal Year Aug** Sept Oct Nov Dec Total 1) 2001 Tax Allocation Bonds US Bank Trust Services Bond issue to fund infrastructure 28,161, ,350, , $ 932, ) 2006 Tax Allocation Bonds US Bank Trust Services Bond issue to fund infrastructure 3,139, , , $ 152, ) Auto Mall Special Assessmts Solano County Special assessments on land 27, , , $ 9, ) Auto Mall Special Assessmts Vacaville Honda Reimb of special assessments on land 60, , , $ 10, ) Auto Mall Special Assessmts Dodge Chrysler Jeep NissaReimb of special assessments on land 33, , , $ 5, ) Auto Mall Special Assessmts Vacaville Chevrolet Reimb of special assessments on land 30, , , $ 5, ) Auto Mall Special Assessmts Vacaville Toyota Reimb of special assessments on land 54, , , $ 9, ) Auto Mall Special Assessmts Bartase Reimb of special assessments on land 52, , , $ 8, ) Cultural Center Special Assmts Solano County Special assessments on land 64, , , $ 16, ) SERAF Loan2010 LIHF Loan for 2010 SERAF payment 2,000, $ 11) Employee costs Employees of Agency Payroll of employees 4,102, ,102, , , , , , $ 1,709, ) Genentech Participant Agreemt Genentech Reimb of property tax 47,678, ,864, ,432, ,716, $ 5,148, ) Factory Outlets Part Agreement Vacaville Factory Outlets Sales tax incentive 225, , , $ 25, ) Nut Tree Part Agreement Nut Tree Partners Reimb of DIF 2,405, , , $ 626, ) Tax Sharing Agreement Solano County Payments per former CRL ,407, ,212, ,927, $ 4,927, ) Tax Sharing Agreement Solano Community College Payments per former CRL ,930, , , $ 160, ) Tax Sharing Agreement Solano Co Water Agency Payments per former CRL ,165, , , $ 262, ) Tax Sharing Agreement Vacaville Unified Library Payments per former CRL ,365, , , $ 279, ) Tax Sharing Agreement Mosquito Abatement Payments per former CRL , , , $ 63, ) Tax Sharing Agreement VacaElmira Cemetery Payments per former CRL , , , $ 72, ) Statutory Payments Ulatis Soil Conservation Payments per former CRL , , , $ 2, ) Statutory Payments YoloSolano APC Payments per former CRL , , , $ 5, ) Statutory Payments City of Vacaville Payments per former CRL ,490, , , $ 384, ) Statutory Payments Solano Irrigation District Payments per former CRL , , , $ 28, ) Statutory Payments Solano Cty Office of Ed Payments per former CRL , , , $ 55, ) Statutory Payments Vacaville Unified School Payments per former CRL ,002, ,283, , $ 770, ) Buck Eldridge repairs Southland Construction Construction payment 10, , , $ 10, ) $ 29) $ 30) $ $ Totals This Page $ 172,119, $ 24,966, $ 3,774, $ 1,427, $ 977, $ 341, $ 9,159, $ 15,680, Totals Page 2 $ $ $ $ $ $ $ $ Totals Page 3 $ $ $ $ $ $ $ $ Totals Page 4 $ $ $ $ $ $ $ $ Totals Other Obligations $ $ $ $ $ $ $ $ Grand total All Pages $ 172,119, $ 24,966, $ 3,774, $ 1,427, $ 977, $ 341, $ 9,159, $ 15,680, * This Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late August. It is valid through 12/31/11. It is the basis for the Preliminary Draft Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency by 9/30/11. (The draft ROPS must be prepared by the Successor Agency by 11/30/11.) If an agency adopts a continuation ordinance per ABX1 27, this EOPS will not be valid and there is no need to prepare a ROPS. ** Include only payments to be made after the adoption of the EOPS.

6 Name of Redevelopment Agency Vacaville Redevelopment Agency Project Area(s) Vacaville Community Redevelopment Project Area Page 1 of Pages Attachment A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 Section and (*) Payments by month Total Outstanding Total Due During Project Name / Debt Obligation Payee Description Debt or Obligation Fiscal Year Aug** Sept Oct Nov Dec Total 1) 1996 Tax Allocation Bonds US Bank Trust Services Bond issue to fund infrastructure 5,972, , , $ 393, ) 2000 Tax Allocation Bonds US Bank Trust Services Bond issue to fund infrastructure 13,392, , , $ 484, ) 2001 Tax Allocation Bonds US Bank Trust Services Bond issue to fund infrastructure 14,517, , , $ 510, ) 2000A Multifamily Mortgage US Bank Trust Services Bond issue to fund housing projects 2,527, , , $ 133, ) 2006 Taxable Housing Bonds US Bank Trust Services Bond issue to fund housing projects 32,269, ,482, , $ 940, ) Beck & Clark Loan Beck & Clark Financed land purchase 400, , , $ 22, ) Klotz loan Klotz, Albert R Financed land purchase 368, , , , , , , $ 81, ) Babington Loan Babington, Richard Financed housing land purchase 324, , $ 9) Dept of Toxic Substance Loan CA Dept of Toxic Substance Financed toxic cleanup 174, , , $ 174, ) EMV Special Assessments Solano County Special assessments on land 9, , , $ 2, ) SERAF Loan2010 LIHF Loan for 2010 SERAF payment 1,898, , , $ 526, ) Employee costs Employees of Agency Payroll for employees 1,326, ,326, , , , , , $ 552, ) Tax Sharing Agreements Solano County Payments per former CRL ,287, ,050, , $ 630, ) Statutory Payment Solano County Payments per former CRL , , , $ 1, ) Statutory Payment Mosquito Abatement Payments per former CRL , , $ ) Statutory Payment Ulatis Soil Conservation Payments per former CRL , $ ) Statutory Payment Solano Co Water Agency Payments per former CRL , , , $ 5, ) Statutory Payment YoloSolano APC Payments per former CRL , $ ) Statutory Payment City of Vacaville Payments per former CRL , , , $ 39, ) Statutory Payment Solano Irrigation District Payments per former CRL , $ ) Statutory Payment VacaElmira Cemetery Payments per former CRL , , , $ 1, ) Statutory Payment Vacaville Unified Library Payments per former CRL , , , $ 5, ) Statutory Payment Solano Cty Office of Ed Payments per former CRL , , , $ 5, ) Statutory Payment Solano Community College Payments per former CRL , , , $ 9, ) Statutory Payment Vacaville Unified School Payments per former CRL ,935, , , $ 78, ) Capitalized Lease Willington Trust Securitization of Vacaville Skating Ctr 2,744, , , , , , , $ 80, ) 712 Catherine Street Vacaville Community Housing Purchase agreement payment 535, , , $ 535, ) Buck Eldridge repairs Southland Construction Construction payment 10, , , $ 10, ) $ 30) $ $ Totals This Page $ 93,412, $ 7,861, $ 874, $ 2,482, $ 142, $ 276, $ 1,448, $ 5,225, Totals Page 2 $ $ $ $ $ $ $ $ Totals Page 3 $ $ $ $ $ $ $ $ Totals Page 4 $ $ $ $ $ $ $ $ Totals Other Obligations $ $ $ $ $ $ $ $ Grand total All Pages $ 93,412, $ 7,861, $ 874, $ 2,482, $ 142, $ 276, $ 1,448, $ 5,225, * This Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late August. It is valid through 12/31/11. It is the basis for the Preliminary Draft Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency by 9/30/11. (The draft ROPS must be prepared by the Successor Agency by 11/30/11.) If an agency adopts a continuation ordinance per ABX1 27, this EOPS will not be valid and there is no need to prepare a ROPS. ** Include only payments to be made after the adoption of the EOPS.