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OSB 14-007 RESOLUTION NO. OSB 14-007 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY APPROVING A FY 1988-89 WATER 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 1988-89 (FY 1988-89 Water Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an amount equal to $1,767,820 from the City's Water Fund, of which a principal balance of $704,354 remains, for assisting the South Poway Parkway, Arbolitos Park, and other public improvements projects; 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 14-007 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 1988-89 Water Fund Loan, together with other information relating thereto, to the Oversight Board and requested that the Oversight Board approve the FY 1988-89 Water Fund Loan, and find that the loan of funds under the FY 1988-89 Water 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 1988-89 Water Fund Loan and hereby finds and determines that the loan of funds by the City to the former Redevelopment Agency under the FY 1988-89 Water Fund Loan was for legitimate redevelopment purposes. This finding is based upon the following: a) The amounts due and owing to the City under the FY 1988-89 Water Fund Loan reflect the repayment to the City of amounts advanced to or on behalf of the former Redevelopment Agency for assisting the South Poway Parkway, Arbolitos Park, and other public improvements projects to benefit the Paguay Redevelopment Project Area and the community. b) Financing public improvements and the acquisition of property in the Paguay Redevelopment Project Area were 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 14-007 Page 3 1988-89 Water Fund Loan with the City in order to borrow funds necessary for the Redevelopment Agency to assist the South Poway Parkway, Arbolitos Park, and other public improvements projects 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 1988-89 Water 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 1988-89 Water Fund Loan. The Oversight Board hereby approves the FY 1988-89 Water 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 1988-89 Water Fund Loan Repayment Schedule (Exhibit B). The total principal and interest owed ("Amounts Owed") for the FY 1988-89 Water Fund Loan is $713,510.48. The Oversight Board further determines that the repayment of Amounts Owed under the FY 1988-89 Water Fund Loan is an enforceable obligation and the Successor Agency is authorized to include the repayment of the FY 1988-89 Water 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 Water 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 1988-89 Water Fund Loan are repaid in full to the City's Water Fund. Section 4. Transmittal of FY 1988-89 Water 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 1988-89 Water Fund Loan as an enforceable obligation. Resolution No. OSB 14-007 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, Chai ATTEST: Sheila . Cobian, CMC, Secretary Resolution No. OSB 14-007 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 14-007 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 • eila . Cobian, CM* MC, Secretary Attachments: Exhibit A — FY 1988-89 Water Fund Loan Repayment Agreement and Supporting Budget Documentation Exhibit B — FY 1988-89 Water Fund Loan Repayment Schedule COIGanrt dl e 8rh tt'.; F'Gi� K r 2 & s' d -h� vkr ml it . " j1 Y:: NI a fi3 s$� :: t?� f e; e+fit _fi :�� ., ?� ��''�'_���?[}...r3f��=,�� �.'�'�a'�,:�..�.Y '��?,... � ' _..� . ��� .�.,, .�tas r;:r , a.mss. � .�`.�$f'..t.. Chart C "' Period Fiscal Year. 10 ?:y' Indesc Y. Fund P3-77:11E9 Account I 154 1 Account Transaction Date Type Document •.Description Amount Debit) Cloth v ire + f`.. .. �.�{�: '. .�'w-r�",11,�� ,�s�� i���..w,...�`t. s.data� `� °ry4t+ � <.� :A ��.`cRx t 'l. : .fi4�.s 1�..?. 154- 4 .. .04-2e10 j [ip9777 OO6O'6 J tRepayWaterban-PgAint. # J* OOh00i a15A �,. ' [394UN.2OO9 j ,#099 1t0eCeO53 ". tnemay'Wniar foul Iean-Pridupai. I epT65.61j .. at54 (K!JUL-.1009 j' 'woe, jau'oosoi Ismail-oeA_ANcz t 9e0aSrf100■ Oeti3: - 1. ( __ l- 1 Total: 1 .... 2C06.353:66i [Debit _,. 3 Note: The$280,705.61 FY 09 principal repayment paid off three small loans as well as a part of the$1,767,820 loan. The amounts of the three smaller loans were$10,000,$82,000 and$43,091;which left$145,614.61 to be applied to the larger loan. Balance Reconciliation: Original Loan 1,767,820.00 FY 09 principal payback (145,614.61) FY 10 principal payback (917,851.51) Current balance 704,353.88 Projects: 5238 South Poway Parkway 1,350,000.00 5606 Arbolitos Park 290,000.00 Various 127,820.00 Total 1,767,820.00 Exhibit A 28 / I CITY OF POWAY WATER FUND 1986-1987 1987-1988 1987-1988 1988-1989 1988-1989 ACTUAL BUDGET ESTIMATED PROPOSED APPROVED FUND ACTIVITY DETAIL ! BEGINNING BALANCE-July 1 $ - $ - $ - $ - $ Prior Years Appropriation 2,245,437 3,782,320 3,782,320 4,230,652 4,230,6521 Revenues 6,727,871 7,361,870 6,554,522 6,903,071 7,238,541 TOTAL FUNDS AVAILABLE $8,973,308 $11,144,190 $10,336,842 $11,133,723 $11,469,1931 EXPENDITURES Bond Interest I & Redemption $1,174,250 $ 1,184,270 $ 1,184,270 $ 1,179,000 $ 1,179,000 Operating Expenses: Admin. Services $ 241,341 $ 270,209 $ 262,251 $ 434,843 $ 442,343 Community Services 43,566 43,566 43,566 43,566 43,566 Public Services 3,731,831 3,870,898 4,019,103 4,222,551 4,275,1711 Total Operating • Expenses $4,016,738 $ 4,184,673 $ 4,324,920 $ 4,700,960 $ 4,761,0801 Capital Projects: Water Improvements $ - $ - $ $ - $ - I (continuing approp.) Water Improvements - 440,000 539,000 212,150 -212,150 Total Capital Projects $ - $ 440,000 $ 539,000 $ 212,150 $ 212,150 TOTAL EXPENDITURES $5,190,988 $ 5,808,943 $ 6,048,190 $ 6,092,110 $ 6,152,230 TRANSFERS/LOANS-In (Out) Loan to Redevelopment Agency $ - $ - $ - $(1,767,820) $(1,767,820' To Municipal Improvement - (58,000) (58,000) - - 1 n TOTAL TRANSFERS/LOANS $ - $ (58,000) $ (58,000) $(1,767,820) $(1,767,820' TOTAL APPROPRIATIONS $3,782,320 $ 5,277,247 $ 4,230,652 $ 3,273,793 $ 3,549,143 ENDING BALANCE - June 30 0 0 0 0 0 Exhibit A • 196 1 • " REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROGRAM DETAIL Department: Activity: . . REDEVELOPMENT AGENCY STREETS AND HIGHWAYS (cont'd.) ACTIVITY CENTARY - 5238 SOUTH POWAY PARKWAY • This project provides for design and construction of the horizontal and vertical alignment of the roadway South Poway Parkway (Alternate 8) from Pomerado Business Park to a point 1.2 miles west of the City limits. This is a cooperative effort with the City of San Diego and various developers to design and build a link from Mercy Road interchange to the South Poway Arterial. Construction is anticipated to start in FY 1988-89. 'Cost Estimate - $7,000,000 Funding Sources - FY 88-89 Bond Proceeds $4,260,000 FY 87-88 - $ 40,000 Loan from City • • $2,700,000 FY 88-89 - $6,960,000 Streets Loan $1,350,000 Water Loan $1,350,000 5239 HIGH VALLEY/ESPOLA/DEL PONIENTE REALIGNMENT This project provides for the realignment of the High Valley/Espola/Del • Poniente intersection. Land acquisition and design were completed in FY 1987-88, and construction will follow in future fiscal years. • Cost Estimate - $605,200 • FY 87-88 - $255,200. • j FY 89-90 - $350,000 • • 5240 POWAY GRADE IMPROVEMENTS • This project provides for the design and construction of improvements to Poway Grade. Design will be undertaken in FY 1988-89 and construction in 1989-90. Cost Estimate - $70,000 • Funding Source - .FY 88489'•;; Loan from Street Development FY 88-89 - $70,000 Fund of Prop A Funds . $70,000 • • • • Exhibit A 218 REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROGRAM DETAIL Department: Activity: REDEVELOPMENT AGENCY PARKS AND OPEN SPACE (cont'd.) ACTIVITY COMMENTARY 5604 PARK RESTROOM - GARDEN PARK This project provides for the design and construction of a restroom facility at Garden Park. Cost Estimate - $82,330 Funding Source - FY 88-89 Loan from City (Park Fund) $82,330 y, FY 88-89 - $82,330 • 5605 PARK RESTROOM - STARRIDGE PARK This project provides for the design and construction of a restroom facility at Starridge Park. Cost Estimate - $82,330 Funding Source - FY 88-89 Loan from City (Park Fund) $82,330 FY 88-89 - $82,330 5606 ARBOLITOS PARK This project provides for the acquisition of 39 + acres of surplus schobl land Located in the Rancho Arbolitos Subdivision for public parkland purposes. Cost Estimate - $290,000 Funding Source - FY 88-89 0 ! Loan from City $290,000 FY 88-89 - $290,000 txrubit FY 1988-89(A)WATER FUND LOAN 18-YEAR $704,354 Principal Balance Annualpayment on,6130 of each tiscatYear(1&year repayment) 40;67042 LA1 1F 1rtet.est Tate . :; ' ':':-_.1 0.26% Pymt# Balances Principal Interest Total Balance @ 6/30/15 704,353.88 9,156.60 713,510.48 1 I Payment @ 6/30/15 31,363.82 9,156.60 40,520.42 Balance @ 7/1/15 672,990.06 - 672,990.06 FY 15-16 Interest - 1,749.77 1,749.77 Balance @ 6/30/16 672,990.06 1,749.77 674,739.83 2 I Payment @ 6/30/16 38,770.65 1,749.77 40,520.42 Balance @ 7/1/16 634,219.41 - 634,219.41 FY 16-17 Interest - 1,648.97 1,648.97 Balance @ 6/30/17 634,219.41 1,648.97 635,868.38 3 I Payment @ 6/30/17 38,871.45 1,648.97 40,520.42 Balance @ 7/1/17 595,347.96 - 595,347.96 FY 17-18 Interest - 1,547.90 1,547.90 Balance @ 6/30/18 595,347.96 1,547.90 596,895.86 L 4 I Payment @ 6/30/18 38,972.52 1,547.90 40,520.42 Balance @ 7/1/18 556,375.44 - 556,375.44 FY 18-19 Interest - 1,446.58 1,446.58 Balance @ 6/30/19 556,375.44 1,446.58 557,822.02 5 I Payment @ 6/30/19 39,073.84 1,446.58 40,520.42 Balance @ 7/1/19 517,301.60 - 517,301.60 FY 19-20 Interest - 1,344.98 1,344.98 Balance @ 6/30/20 517,301.60 1,344.98 518,646.58 6 I Payment @ 6/30/20 39,175.44 1,344.98 40,520.42 Exhibit B FY 1988-89(A)WATER FUND LOAN 18-YEAR $704,354 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/20 478,126.16 - 478,126.16 FY 20-21 Interest - . 1,243.13 1,243.13 Balance @ 6/30/21 478,126.16 1,243.13 479,369.29 7 I Payment © 6/30/21 39,277.29 1,243.13 40,520.42 Balance @ 7/1/21 438,848.87 - 438,848.87 FY21-22 Interest - 1,141.01 1,141.01 . Balance © 6/30/22 438,848.87 1,141.01 439,989.88 8 I Payment © 6/30/22 39,379.41 1,141.01 40,520.42 Balance © 7/1/22 399,469.46 - 399,469.46 ' FY 22-23 Interest - 1,038.62 1,038.62 Balance © 6/30/23 399,469.46 1,038.62 400,508.08 9 I Payment CO 6/30/23 39,481.80 1,038.62 40,520.42 Balance © 7/1/23 359,987.66 - 359,987.66 FY 23-24 Interest - 935.97 935.97 Balance @ 6/30/24 359,987.66 935.97 360,923.63 10 I Payment @ 6/30/24 39,584.45 935.97 40,520.42 Balance © 7/1/24 320,403.21 - 320,403.21 FY 24-25 Interest - 833.05 833.05 Balance @ 6/30/25 320,403.21 833.05 321,236.26 11 I Payment @ 6/30/25 39,687.37 833.05 40,520.42 Balance © 7/1/25 280,715.84 - 280,715.84 FY 25-26 Interest - 729.86 729.86 Balance @ 6/30/26 280,715.84 729.86 281,445.70 12 I Payment @ 6/30/26 39,790.56 729.86 40,520.42 Exhibit B FY 1988-89(A)WATER FUND LOAN 18-YEAR $704,354 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/26 240,925.28 - 240,925.28 FY 26-27 Interest - 626.41 626.41 Balance @ 6/30/27 240,925.28 626.41 241,551.69 13 1 Payment @ 6/30/27 39,894.01 626.41 40,520.42 Balance @ 7/1/27 201,031.27 - 201,031.27 FY 27-28 Interest - 522.68 522.68 Balance @ 6/30/28 201,031.27 522.68 201,553.95 14 I Payment @ 6/30/28 39,997.74 522.68 40,520.42 Balance @ 7/1/28 161,033.53 - 161,033.53 FY 28-29 Interest - 418.69 418.69 Balance @ 6/30/29 161,033.53 418.69 161,452.22 15 I Payment @ 6/30/29 40,101.73 418.69 40,520.42 Balance @ 7/1/29 120,931.80 - 120,931.80 FY 29-30 Interest - 314.42 314.42 Balance @ 6/30/30 120,931.80 314.42 121,246.22 16 I Payment @ 6/30/30 40,206.00 314.42 40,520.42 Balance @ 7/1/30 80,725.80 - 80,725.80 FY 30-31 Interest - 209.89 209.89 Balance @ 6/30/31 80,725.80 209.89 80,935.69 17 I Payment @ 6/30/31 40,310.53 209.89 40,520.42 Balance @ 7/1/31 40,415.27 - 40,415.27 FY 31-32 Interest - 105.08 105.08 Balance @ 6/30/32 40,415.27 105.08 40,520.35 18 I Payment CO 6/30/32 40,415.27 105.08 40,520.35 Balance @ 7/1/32 0.00 - 0.00 Exhibit B