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OSB 14-004 RESOLUTION NO. OSB 14-004 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY APPROVING A FY 2000-01 (A) SEWER FUND LOAN BETWEEN THE CITY OF POWAY AND THE FORMER POWAY REDEVELOPMENT AGENCY AND MAKING FINDINGS RELATING THERETO WHEREAS, pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the City Council of the City of Poway ("City") activated the Poway Redevelopment Agency ("Redevelopment Agency") and adopted, and subsequently amended, the Redevelopment Plan for the Paguay Redevelopment Project Area ("Redevelopment Plan"); and WHEREAS, in furtherance of its redevelopment activities, the City and Redevelopment Agency completed a loan in FY 2000-01 (FY 2000-01 (A) Sewer Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an amount equal to $467,222 from the City's Sewer Fund for assisting the Community Road Improvements Project; and WHEREAS, Assembly Bill (AB) X1 26, enacted June 2011, and AB 1484, enacted June 2012 (collectively, the "Dissolution Act") required the dissolution of redevelopment agencies and established certain procedures and requirement for the wind-down of their activities; and WHEREAS, the Successor Agency to the Poway Redevelopment Agency ("Successor Agency") is the successor entity to the Redevelopment Agency and, pursuant to the Dissolution Act, is responsible for the wind-down affairs of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, the Oversight Board is the oversight board to the Successor Agency and, pursuant to the Dissolution Act, is responsible to oversee the actions of the Successor Agency in the wind-down affairs of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, Health and Safety Code Section 34171(d)(2) provides, with a few exceptions, that "enforceable obligation" does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency; and WHEREAS, the Dissolution Act further provides that after a successor agency receives a finding of completion from the Department of Finance ("DOF") pursuant to Health and Safety Code Section 34179.7, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes; and Resolution No. OSB 14-004 Page 2 WHEREAS, the Successor Agency has received a finding of completion from the DOF on May 24, 2013; and WHEREAS, in addition to establishing when a loan agreement between the city and redevelopment agency shall be deemed to be an enforceable obligation, Health and Safety Code Section 34191.4 further establishes certain restrictions and limitations concerning loan repayments; and WHEREAS, the City and Successor Agency have submitted the FY 2000-01 (A) Sewer Fund Loan, together with other information relating thereto, to the Oversight Board and requested that the Oversight Board approve the FY 2000-01 (A) Sewer Fund Loan, and find that the loan of funds under the FY 2000-01 (A) Sewer Fund Loan was for legitimate redevelopment purposes; NOW, THEREFORE, BE IT RESOLVED by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency as follows: Section 1. Recitals. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Findings. The Oversight Board has reviewed the original purpose and use of the FY 2000-01 Sewer Fund Loan and hereby finds and determines that the loan and advances of funds by the City to the former Redevelopment Agency under the FY 2000-01 (A) Sewer Fund Loan were for legitimate redevelopment purposes. This finding is based upon the following: a) The amounts due and owing to the City under the FY 2000-01 (A) Sewer Fund Loan reflect the repayment to the City of amounts advanced to or on behalf of the former Redevelopment Agency for assisting the Community Road Improvements Project to benefit the Paguay Redevelopment Project Area and the community. b) Financing public improvements in the Paguay Redevelopment Project Area was specifically identified in the Redevelopment Plan as activities to be undertaken by the Redevelopment Agency to further the goals of the Redevelopment Plan. c) Health and Safety Code Section 33133 authorizes a redevelopment agency to accept assistance from any public or private source for the redevelopment agency's activities. Furthermore, the Redevelopment Plan specifically authorizes the Redevelopment Agency to receive assistance from the City in forms that include advances and loans. d) The Redevelopment Agency was established for the purpose of eliminating blight; stimulating private investment; upgrading commercial and industrial areas; developing parks and recreation facilities; financing public improvements; alleviating infrastructure deficiencies; and providing affordable housing in the areas constituting the Paguay Redevelopment Project Area pursuant to the adopted Redevelopment Plan. The Redevelopment Agency entered into the FY Resolution No. OSB 14-004 Page 3 2000-01 (A) Sewer Fund Loan with the City in order to borrow funds necessary for the Redevelopment Agency to complete the Community Road Improvements Project in accordance with and in implementation of the Redevelopment Plan and the five-year Implementation Plan adopted by the Redevelopment Agency pursuant to Health and Safety Code Section 33490. e) The amounts provided to the Redevelopment Agency under the FY 2000-01 (A) Sewer Fund Loan were loaned to the Redevelopment Agency to further the Redevelopment Agency's redevelopment activities and goals in accordance with and in furtherance of the Redevelopment Plan and the Implementation Plan, to benefit the Paguay Redevelopment Project Area and the surrounding community. Section 3. Approval of FY 2000-01 (A) Sewer Fund Loan. The Oversight Board hereby approves the FY 2000-01 (A) Sewer Fund Loan from the City to the former Redevelopment Agency, including without limitation the recalculation of interest using the Local Agency Investment Fund rate as of the quarter ending December 31, 2013, in accordance with and as set forth in the FY 2000-01 (A) Sewer Fund Loan Repayment Schedule (Exhibit B). The total principal and interest owed ("Amounts Owed") for the FY 2000-01 (A) Sewer Fund Loan is $473,295.90. The Oversight Board further determines that the repayment of Amounts Owed under the FY 2000-01 (A) Sewer Fund Loan is an enforceable obligation and the Successor Agency is authorized to include the repayment of the FY 2000-01 (A) Sewer Fund Loan as an enforceable obligation under its future Recognized Obligation Payment Schedules (ROPS) submitted to the Oversight Board for approval. As Proposition 218, and other constitutional requirements that must be met, support the need for repayment of the full amounts loaned to the Redevelopment Agency from the City's Sewer Fund, the Oversight Board hereby approves, and authorizes the Successor Agency to take such actions, in cooperation with the City, to ensure that all monies due and owing under the FY 2000-01 Sewer Fund Loan are repaid in full to the City's Sewer Fund. Section 4. Transmittal of FY 2000-01 (A) Sewer Fund Loan to Department of Finance. The Successor Agency is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution, including without limitation, providing any documentation and evidence to the Department of Finance as necessary to obtain from the Department of Finance approval of the FY 2000-01 (A) Sewer Fund Loan as an enforceable obligation. Resolution No. OSB 14-004 Page 4 PASSED, ADOPTED AND APPROVED by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a meeting thereof this 30th day of April 2014. Bruce Tarzy, air O_ ATTEST: Sheil R. Cobian, CMC, Secretary Resolution No. OSB 14-004 Page 5 STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) I, Sheila R. Cobian, Secretary of the Successor Agency of the Poway Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing Resolution No. OSB 14-004 was duly adopted by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a meeting of said Board held on the 30th day of April 2014, and that it was so adopted by the following vote: AYES: TARZY, FONG-SAKAI, LYON, SCOTT, LADERMAN, THOLANDI NOES: NONE ABSENT: TAM DISQUALIFIED: NONE Sheila R. Cobian, CMC, Secretary Attachments: Exhibit A — FY 2000-01 Sewer Fund Loan Repayment Agreement and Supporting Budget Documentation Exhibit B — FY 2000-01 Sewer Fund Loan Repayment Schedule ai Ito r8+1:.:i.:;e7 A'i Y'jitt.aoei 4'.'Se.c i`i#:*c 2' `,'.. �Jf b r ra s v3^a e^., 'I•tq „$ 3,.,.. - ' " ++' i .ate'' ';`.t _. _.. _ ? _ .,,r . .r_ _ �, k... �' ��., s, Vic' 1. •Cr :. rof Period: AscalYeaC o.9'.:.Fi I' Fund: 520... . r—b s ACCbtettl' EtSISd. __1:7-..,• ' •Account Transaction Date Type• •Docionent Description Amount Deed! • ... 04404, iY t�'`"....4 .1.11.°�rw nr ! J `* 4,^,'S^... 4 0 n .1)h at„ 14 1. 1B154 i 20-A,PR 2001 i 099 0104015 1,644:Conectwn- 467,222oC IDet+t. '1 y : Isis4 Lot JuL 2uo*. 1 OS + st.FDaina ` 19Eoalmp enuwcE �, ..Y. ,.. i 1,288.32700 oad y. I 1 :F.:77T j I....—.....--- ). ..., ..-.1. 1_...................„.... F-.7.7. ... .„......... . . „..... .. ...... .„............] ,..........,.....,..,............ .....,....., :IIIIIIM Hi F--- .1 i •i :nag I: i : 1 - ._,.„.., , •:. 1 t 1.1110. .1.2,1: E • Totm: . 3,070 049:463 .$--". I, Note: Recording of original loans:$1,342,500&$467,222 • Exhibit A i_ _ __ _ ___ ____ ,i------- .- -SEWER UTILITIES F+ UND 1 Fund Activity Detail . (Fund 520) 1 1999-00 2000-01 2000-01 2001.02 2002-03 Actual Approved Estimated Proposed Proposed P P FUNDS AVAILABLE Beginning Fund Balance-July 1 12,026,480 13,519,808 13,519,808 7,553,987 6,557,406 , Revenues , 6,901,275 5,812,380 6,645,963 5,721,020 5,706,080 TOTAL FUNDS AVAILABLE 18,927,755 19,332,188 20,165,771 13,275,007 12,263,486 i EXPENDITURES Operating Expenses ;3 Legislative &Administrative Services 85,892 91,406 98,798 108,162 107,614 ii Administrative Services 581,411 610,301 669,603 702,438 715,577 31 Development Services 66,195 58,569 73,128 76,021 77,957 Public Services 4,405,562 6,582,713 5,538,623 5,818,507 6,136,194 Total Operating Expenses 5,139,060 7,342,989 6,380,152 6,705,128 7,037,342 Program Expenses Total Program Expenses - - - - - Capital Projects Government Buildings (6,062) - - (16,167) Streets and Highways 93,907 - - - - 4; Sewer Improvements 181,042 150,000 5,764,410 (4,500) 150,000 Total Capital Projects 268,887 150,000 5,764,410 (20,667) 150,000 TOTAL EXPENDITURES 5,407,947 7,492,989 12,144,562 6,684,461 7,187,342 TRANSFERS/LOANS-In(Out) Payment from Proposition A . - 1,000,000 - - - i Transfer to Facility Capital Repl. Funds - - - (33,140) (33,140)' Loan to RDA CIP Sewer Fund - - (467,222) - - TOTAL TRANSFERS/LOANS - 1,000,000 (467,222) (33,140) (33,140)1 i 3 111 i il ENIDING FUND BALANCE 13,519,808 12,839,199 7,553,987 6,557,406 5,043,004 c '' Exhibit A S. CITY OF POWAY .:1;.,. ,_., t•-=. .-.,;-:5.-.;,;:::;;;...:,,,....-,_'.,''.:.,---...: .:::'.'i.;,..,.::,..::::::::::'::;:';',..":7::::::"--..';,"-...-.1.:':.:7...:: ::'.:.:,-.:.;,=:,..'"-?"-.......,:f.:.:::':::'''':'''''i,...:;ZY. ,:-`-',;:N:7--„_"-..:...-"-7.:"-;'Ai....',. ..:',':,:(i .: ,'.::i.. .:Sit-FI::.f.;',.IM gAiiTArt:*01 /4N.T.0.oggAm:',:-.;..--:::::::,::'--;,3,::,- :,...=':::::.'.:,;..:;'..::_,:,-...:.-!:--Y.',:,.,.- tti*ets-i...vs*tv-oxwAy-sr•!.:.,:;:.:§ giw.-.uii -1 .,,,,-,-.,..:.,,,.;....,.--,.:i:.,....:..-:. . ----,, 129..:sNAT-010AJORAw•Ovs's0F4ITT::::,.. '...-:,,...:.:-.-,..:.:,,::',:e:.: ,:::.,.::...;:.;,-,,,.::'.--. -:,-.--.::-:.::,.-.::,,,:•? --,::,:.:,,...-.J.,:::.;::-;,,..,.;-:-,.=:':::.',::::-.':...-::::v!;:oga This project provides funding for the Skateboard Park Bus Shelter,Turnout and Restroorri Project. Activity Through New Appropriations Funding Source 4/16/01 July 1,2001 July 1,2002 Total Project I TDA(243) . $125,000. $125,000 .: Total Budget : .., ..-:: ... :.: „ : :- :$15;opg: ,.. . . ,..._.: .,._:$0. :. :: : ......, ...,..,...-..,i.:,;.•$0j ..,-.....s:,::.,.,....-•ingsNoi I Expenditures 0 0 111 Encumbrances 0 0 Remaining Budget $125,000 $0 $0 $125,000 li . . 1280 COMMUNITY ROAD IMPROVEMENTS • : .- . - • T.". •.::.-- -- :". :•. - :•-: -,. ---.- . ' . ' , ',...----•;=',. :=-. I This project will widen lanes,add curbs,gutters, sidewalks, street lights and storm drains. There will be a two-inch asphalt overlay,deep patching,enhanced storm drains,and traffic signal modification. Reassigned from project numbers 1280 and 5286. Activity Through New Appropriations Funding Source 4/16/01 July 1,2001 July 1,2002 Total Project Street Dev-Prop A(223) $461,934 $461,934 Street Lighting(275) 85,000 85,000 RDA Capital(436) 823,750 823,750 RDA Sewer Loan(439) 467,222 467,222 Water Fund(510) 50,400 50,400 Sewer Fund(520) 52,000 52,000 TOO 13ndet:City . $1,940,306 . '$0 . -$0 ' $1,940,306.1 Total Expenditures 49,967 49,967 Total Encumbrances 15,220 15,220 Total Remaining Budget $1,875,119 $0 $0 $1,875,119 I 'i• „ I . 1 I 186 Exhibit A FY 2000-01 (A)SEWER FUND LOAN 18-YEAR $467,222 Principal Balance Annual payment on 6/30 of each flacal year(18 year repayment) 26,878.58 LAIF'interest rate ':0.26%a. Pymt# Balances Principal Interest Total Balance @ 6/30/15 467,222.00 6,073.90 473,295.90 1 I Payment @ 6/30/15 20,804.68 6,073.90 26,878.58 Balance @ 7/1/15 446,417.32 - 446,417.32 FY 15-16 Interest - 1,160.69 1,160.69 Balance @ 6/30/16 446,417.32 1,160.69 447,578.01 2 I Payment @ 6/30/16 25,717.89 1,160.69 26,878.58 Balance @ 7/1/16 420,699.43 - 420,699.43 FY 16-17 Interest - 1,093.82 1,093.82 Balance @ 6/30/17 420,699.43 1,093.82 421,793.25 3 I Payment @ 6/30/17 25,784.76 1,093.82 26,878.58 Balance @ 7/1/17 394,914.67 - 394,914.67 FY 17-18 Interest - 1,026.78 1,026.78 Balance @ 6/30/18 394,914.67 1,026.78 395,941.45 4 I Payment @ 6/30/18 25,851.80 1,026.78 26,878.58 Balance @ 7/1/18 369,062.87 - 369,062.87 FY 18-19 Interest - 959.56 959.56 Balance @ 6/30/19 369,062.87 959.56 370,022.43 5 I Payment @ 6/30/19 25,919.02 959.56 26,878.58 Balance @ 7/1/19 343,143.85 - 343,143.85 FY 19-20 Interest - 892.17 892.17 Balance @ 6/30/20 343,143.85 892.17 344,036.02 6 I Payment @ 6/30/20 25,986.41 892.17 26,878.58 Exhibit B FY 2000-01 (A)SEWER FUND LOAN 18-YEAR $467,222 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/20 317,157.44 - 317,157.44 FY 20-21 Interest - 824.61 824.61 Balance @ 6/30/21 317,157.44 824.61 317,982.05 7 I Payment @ 6/30/21 26,053.97 824.61 26,878.58 Balance @ 7/1/21 291,103.47 - 291,103.47 FY 21-22 Interest - 756.87 756.87 Balance @ 6/30/22 291,103.47 756.87 291,860.34 8 I Payment @ 6/30/22 26,121.71 756.87 26,878.58 Balance @ 7/1/22 264,981.76 - 264,981.76 FY 22-23 Interest - 688.95 688.95 Balance @ 6/30/23 264,981.76 688.95 265,670.71 9 I Payment @ 6/30/23 26,189.63 688.95 26,878.58 Balance @ 7/1/23 238,792.13 - 238,792.13 FY 23-24 Interest - 620.86 620.86 Balance © 6/30/24 238,792.13 620.86 239,412.99 10 I Payment @ 6/30/24 26,257.72 620.86 26,878.58 Balance @ 7/1/24 212,534.41 - 212,534.41 FY 24-25 Interest - 552.59 552.59 Balance @ 6/30/25 212,534.41 552.59 213,087.00 11 I Payment @ 6/30/25 26,325.99 552.59 26,878.58 Balance @ 7/1/25 186,208.42 - 186,208.42 FY 25-26 Interest - 484.14 484.14 Balance @ 6/30/26 186,208.42 484.14 186,692.56 12 I Payment @ 6/30/26 26,394.44 484.14 26,878.58 Exhibit B FY 2000-01 (A)SEWER FUND LOAN 18-YEAR $467,222 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/26 159,813.98 - 159,813.98 FY 26-27 Interest - 415.52 415.52 Balance © 6/30/27 159,813.98 415.52 160,229.50 13 1 Payment © 6/30/27 26,463.06 415.52 26,878.58 Balance © 7/1/27 133,350.92 - 133,350.92 FY 27-28 Interest - 346.71 346.71 Balance © 6/30/28 133,350.92 346.71 133,697.63 14 1 Payment C4 6/30/28 26,531.87 346.71 26,878.58 Balance © 7/1/28 106,819.05 - 106,819.05 FY 28-29 Interest - 277.73 277.73 Balance © 6/30/29 106,819.05 277.73 107,096.78 15 1 Payment @ 6/30/29 26,600.85 277.73 26,878.58 Balance © 7/1/29 80,218.20 - 80,218.20 FY 29-30 Interest - 208.57 208.57 Balance © 6/30/30 80,218.20 208.57 80,426.77 16 1 Payment @ 6/30/30 26,670.01 208.57 26,878.58 Balance © 7/1/30 53,548.19 - 53,548.19 FY 30-31 Interest - 139.23 139.23 Balance © 6/30/31 53,548.19 139.23 53,687.42 17 1 Payment @ 6/30/31 26,739.35 139.23 26,878.58 Balance © 7/1/31 26,808.84 - 26,808.84 FY 31-32 Interest - 69.70 69.70 Balance ® 6/30/32 26,808.84 69.70 26,878.54 18 1 Payment @ 6/30/32 26,808.84 69.70 26,878.54 Balance @ 7/1/32 (0.00) - (0.00) Exhibit B