OSB 14-008 RESOLUTION NO. OSB 14-008
A RESOLUTION OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY
APPROVING A FY 1989-90 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 1989-90 (FY 1989-90 Water Fund Loan;
Exhibit A), whereby the City lent to the Redevelopment Agency an amount equal to
$1,902,000 from the City's Water Fund for assisting the Humo Drive Improvements and
Espola Road 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 14-008
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 1989-90 Water
Fund Loan, together with other information relating thereto, to the Oversight Board and
requested that the Oversight Board approve the FY 1989-90 Water Fund Loan, and find
that the loan of funds under the FY 1989-90 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 1989-90 Water Fund Loan and hereby finds and determines that the loan of funds
by the City to the former Redevelopment Agency under the FY 1989-90 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 1989-90 Water Fund Loan
reflect the repayment to the City of amounts advanced to or on behalf of the
former Redevelopment Agency for assisting the Humo Drive Improvements and
Espola Road Improvements projects 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
1989-90 Water Fund Loan with the City in order to borrow funds necessary for
Resolution No. OSB 14-008
Page 3
the Redevelopment Agency to assist the Humo Drive Improvements and Espola
Road 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 1989-90
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 1989-90 Water Fund Loan. The Oversight Board hereby
approves the FY 1989-90 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 1989-90 Water Fund Loan Repayment Schedule (Exhibit B).
The total principal and interest owed ("Amounts Owed") for the FY 1989-90 Water Fund
Loan is $1,926,726. The Oversight Board further determines that the repayment of
Amounts Owed under the FY 1989-90 Water Fund Loan is an enforceable obligation and
the Successor Agency is authorized to include the repayment of the FY 1989-90 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
1989-90 Water Fund Loan are repaid in full to the City's Water Fund.
Section 4. Transmittal of FY 1989-90 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 1989-90 Water Fund Loan as an
enforceable obligation.
Resolution No. OSB 14-008
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, hair
ATTEST:
•
Sheila . Cobian, CMC, Secretary
Resolution No. OSB 14-008
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 14-008 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 1989-90 Water Fund Loan Repayment Agreement and Supporting
Budget Documentation
Exhibit B — FY 1989-90 Water Fund Loan Repayment Schedule
Y
REPAYMENT AGREEMENT
This Repayment Agreement entered in to as of the 2nd day of January
19 90 , by and between the Poway Redevelopment Agency, a public body, corporate
and politic (the "Agency") and the City of Poway, .a municipal corporation (the
"City").
RECITALS
A. The Agency is responsible for carrying out redevelopment activities in
the Poway Redevelopment Project Area (the "Project Area") which is the subject
of a redevelopment plan approved by the City Council of the City by ordinance
adopted on December 13, 1983.
B. The City Council of the City desires to advance a loan to the Agency in
the principal amount of up to $ 1,902,000.00 to assist the Agency in paying the
cost of the design and construction of public improvement projects, and the .
Agency desires to accept said loan on the terms and conditions set forth herein
(the "Public Improvement Projects' Loan").
C. The purpose of this loan is to finance Kum Drive, Putney Road and
Espola Water Improvements project.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and conditions set forth herein, the parties hereto agree as follows:
Section 1. The City hereby advances to the Agency a Public Improvement
Projects Loan in the principal amount of up to $1,902,000.00 with interest
thereon calculated at the rate of return on City investments calculated at
January 1 of each year, and the Agency hereby accepts the Public Improvement
Projects Loan on the terms and provisions set forth herein. The Agency shall be
authorized to draw against the Public Improvement Projects Loan up to the
authorized principal amount thereof from time to time in accordance with
generally accepted accounting principles. The Agency's obligation to repay the
Public Improvement Projects Loan and the interest thereon shall be evidenced by
a promissory note in the form attached hereto as Exhibit "A" and incorporated
herein by reference (the "Public Improvement Projects Promissory Note").
Section 2. The Agency's obligation to make payments to the city pursuant to
the promissory note referred to herein and in the recitals hereinabove shall be
repayed solely from amounts deposited in the special fund created with respect
to the Project Area into which tax increment revenues received by the Agency
pursuant to section 33670(b) are deposited, if and only to the extent that such
tax increment revenues are received.
Section 3. The parties hereto acknowledge and agree that the Agency's obli-
gation to repay amounts evidenced by the Promissory Note referred to herein
shall be automatically subordinated to any other obligation of the Agency
secured by tax increment revenues derived from the Area for which such tax
increment revenues are otherwise pledged in connection with the issuance of
bonds, notes, or certificates of participation as part of the implementation of
the Redevelopment Plan for the Project Area.
Exhibit A
-2-
Section 4. The Agency shall have the right at any time, from time to time,
upon at least ten (10) days written notice to the City, to prepay, without pre-
mium or penalty the outstanding balance of the Promissory Note referred to
herein, or any portion with the interest payable through' the date of
such prepayment.
Section 5. This Agreement shall terminate when all obligations of the
Agency evidenced by the Promissory Note referred to herein shall have been
discharged in full .
Section 6. In case any one or more of the provisions contained in this
Agreement should be held invalid, illegal , or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.
Section 7. No member, officer, agent, or employee of the Agency shall be
individua ley or personally liable for the payment of the principal of or
interest on the Promissory Note.
Section 8. The parties hereto acknowledge and agree that the obligations of
the Agency evidenced by the Promissory Note referred to herein constitutes an
"indebtedness" within the meaning of Health and Safety Code Section 33670(b).
IN WITNESS WHEREOF, the parties hereto have executed this Repayment
Agreement as of the date first above written.
CITY OF POWAY •
Don Higginson, yor
ATTEST:
)larjorie K. Wahlsten, City Clerk
POWAY REDEVELOPMENT AGENCY
• • t
„mok
ion H gginson, "gr .n
ATTEST:
-Th A i!IUR,p,C
Marjorie 1K. Wahlsten, Secretary .
6/G/Repayl-3/CP33
Exhibit A
�,- 4 4
PUBLIC IMPROVEMENT PROJECTS PROMISSORY NOTE
Poway, California
Dates as of: January 2 , 19 90
The Poway Redevelopment Agency, a public body corporate and politic
("Agency"), for value received, hereby promises to pay the City of Poway, a
. municipal corporation ("City") the principal sum of $ 1,902,000.00 , in lawful
money of the United States of America, together with interest thereon on the
unpaid balance thereof from the date hereof at the rate of return on the City of
Poway's investments as calculated. This rate is not to exceed 12% or the maxi-
mum interest rate that may be . lawfully paid by a Redevelopment Agency.
Repayment of principal and interest shall be made as monies are available from
tax increment or other sources.
• POWAY REDEVELOPMENT AGENCY
By \ --
Don Higginson, rman
ATTEST:
•
Marjorie 1C. Wahlsten, Secretary
•
•
•
EXHIBIT "A"
Exhibit A
J
Il
200
POWAY REDEVELOPMENT. AGENCY
CAPITAL IMPROVEMENT PROGRAM OVERVIEW
REVENUE AND EXPENDITURE ANALYSIS
II
POWAY REDEVELOPMENT AGENCY
il
SOURCE AND APPLICATION OF FUNDS
FISCAL YEAR 1989-1990 •
11
FUNDING SOURCES .
Redevelopment Fund .
II
Loan from Water Fund $ 1,902,000
Loan from Street Development Fund 200,000
. Redevelopment Agency. Bond Issue Proceeds 12,519,720
Low and Moderate Set Aside 2,500,000
TOTAL $17,121,720
II
• • II
I
FUNDING APPLICATION I
Street and Highways $ 4,476,000
Traffic Signals 425,000
Flood Control & Drainage 541,000
Government Buildings 1,850,000 •
Park and Open Space • 877,720
Water Improvements 1,902,000 II
Sewer Improvements . 800,000
Revitalization Projects 6,250,000
TOTAL $17,121,720 1 ?;
I
. 11
I
Exhibit A I
201
POWAY REDEVELOPMENT AGENCY
CAPITAL IMPROVEMENT PROGRAM OVERVIEW
IDepartment:
CAPITAL IMPROVEMENT PROGRAM
Total , Total
Estimated , - Activity Classification Total Prior 1989-1990 Combined
Requirements , ' Estimate Expenditures
$20,070,228 Streets & Highways $11,659,228 $ 4,476,000 $16,135,228
1,379,455 Traffic. Signals . 954,455 425,000 1,379,455
4,137,420 Flood Control & Drainage 3,596,420 541,000 4,137,420
k4,663,000 Government Buildings 2,813,000 1,850,000 4,663,000
3,437,380 Parks and Open Space 2,359,660 877,720 3,237,380
2,161,750 Water Improvements 259,750 1,902,000 2,161,750 •
i 1,906,708 Sewer Improvements 1,106,708 800,000 1,906,708
r 8,720,748 Revitalization Projects 2,470,748 6,250,000 8,720,748
$46,476,689 TOTAL BUDGET $25,219,969 $17,121,720 $42,341,689
•
OVERVIEW COMMENTARY
The Poway Redevelopment Agency's Capital Improvement Program represents an effort to
I' allocate the potential financial resources of the Agency in a manner which will
f benefit the Paguay Project Area. Contained within the Agency's work program are
projects designed to eradicate blighting conditions outlined in the Paguay
Redevelopment Plan.
The projects described in this budget fall into the following eight major
categories: Streets and Highways, Traffic Signals, Flood Control and Drainage,
Government Buildings, Parks and Open Space, Water Improvements, Sewer Improvements,
and Revitalization Projects. The pages that follow cover the Redevelopment Agency's
five-year capital improvement program which will be updated annually.
The projects contained in the five-year Capital Improvement Program are proposed to
be funded through loans from the City, federal funds from the Community Development
Block Grant Program or any other federal program, state-funded programs, and the
Redevelopment Agency bonds..
Funds advanced to the Redevelopment Agency Capital Improvement Program will be
reimbursed to the City of Poway from future tax increment monies.
�1' Exhibit A
•
254 I
REDEVELOPMENT AGENCY I
CAPITAL IMPROVEMENT PROGRAM DETAIL
Department: Activity: I
REDEVELOPMENT AGENCY WATER IMPROVEMENTS (cont'd.)
ACTIVITY COMMENTARY I
5714 STAGE STOP ROAD FIRE HYDRANT AND WATER MAIN I
As proposed by the Redevelopment Advisory Committee, this project includes the
- installation of approximately 350 feet of water transmission line along Stage Stop
Road to accommodate a new fire hydrant.
Cost Estimate - $32,000
FY 88-89 - $32,000
•
57.15 HUMO DRIVE IMPROVEMENTS IN
This project provides for the installation of an 8-inch water line in Humo Drive
and Putney Road north of Humo Drive to improve fire flows in the fire hydrants.
Cost Estimate - $102,000 Funding Source - FY 89-90
Loan from Water Fund $102,000 1
FY 89-90 - $102,000
I
5716 ESPOLA ROAD WATER IMPROVEMENTS
This project provides for the installation of. a 24-inch water transmission line on I
Espola. Road from Titan Way to Twin Peaks Road as a part of the Master Water System.
Cost Estimate - $1,800,000 Funding Source - FY 89-90
Loan from Water Fund $1,800,000
FY 89-90 - $1,800,000
I
Exhibit A 1
FY 1988-89(B)WATER FUND LOAN 18-YEAR
$1,902,000 Principal Balance
Annual payment on 6130 of eachfiscal year(18.yearrepayment) 109,419.19
LAIF Irrierest rate 0:2 0
Pymt# Balances Principal Interest Total
Balance @ 6/30/15 1,902,000.00 24,726.00 1,926,726.00
1 I Payment @ 6/30/15 84,693.19 24,726.00 109,419.19
Balance @ 7/1/15 1,817,306.81 - 1,817,306.81
FY 15-16 Interest - 4,725.00 4,725.00
Balance @ 6/30/16 1,817,306.81 4,725.00 1,822,031.81
2 I Payment @ 6/30/16 104,694.19 4,725.00 109,419.19
Balance @ 7/1/16 1,712,612.62 - 1,712,612.62
FY 16-17 Interest - 4,452.79 4,452.79
Balance @ 6/30/17 1,712,612.62 4,452.79 1,717,065.41
3 I Payment @ 6/30/17 104,966.40 4,452.79 109,419.19
Balance @ 7/1/17 1,607,646.22 - 1,607,646.22
FY 17-18 Interest - 4,179.88 4,179.88
Balance @ 6/30/18 1,607,646.22 4,179.88 1,611,826.10
4 I Payment @ 6/30/18 105,239.31 4,179.88 109,419.19
Balance @ 7/1/18 1,502,406.91 - 1,502,406.91
FY 18-19 Interest - 3,906.26 3,906.26
Balance @ 6/30/19 1,502,406.91 3,906.26 1,506,313.17
5 I Payment @ 6/30/19 105,512.93 3,906.26 109,419.19
Balance @ 7/1/19 1,396,893.98 - 1,396,893.98
FY 19-20 Interest - 3,631.92 3,631.92
Balance @ 6/30/20 1,396,893.98 3,631.92 1,400,525.90
6 I Payment @ 6/30/20 105,787.27 3,631.92 109,419.19
Exhibit B
FY 1988-89(B)WATER FUND LOAN 18-YEAR
$1,902,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/20 1,291,106.71 - 1,291,106.71
FY 20-21 Interest - 3,356.88 3,356.88
Balance @ 6/30/21 1,291,106.71 3,356.88 1,294,463.59
7 I Payment @ 6/30/21 106,062.31 3,356.88 109,419.19
Balance @ 7/1/21 1,185,044.40 - 1,185,044.40
FY 21-22 Interest - 3,081.12 3,081.12
Balance @ 6/30/22 1,185,044.40 3,081.12 1,188,125.52
8 I Payment @ 6/30/22 106,338.07 3,081.12 109,419.19
Balance @ 7/1/22 1,078,706.33 - 1,078,706.33
FY 22-23 Interest - 2,804.64 2,804.64
Balance @ 6/30/23 1,078,706.33 2,804.64 1,081,510.97
9 I Payment @ 6/30/23 106,614.55 2,804.64 109,419.19
Balance @ 7/1/23 972,091.78 - 972,091.78
FY 23-24 Interest - 2,527.44 2,527.44
Balance @ 6/30/24 972,091.78 2,527.44 974,619.22
10 I Payment @ 6/30/24 106,891.75 2,527.44 109,419.19
Balance @ 7/1/24 865,200.03 - 865,200.03
FY 24-25 Interest - 2,249.52 2,249.52
Balance @ 6/30/25 865,200.03 2,249.52 867,449.55
11 I Payment @ 6/30/25 107,169.67 2,249.52 109,419.19
Balance @ 7/1/25 758,030.36 - 758,030.36
FY 25-26 Interest - 1,970.88 1,970.88
Balance @ 6/30/26 758,030.36 1,970.88 760,001.24
12 I Payment @ 6/30/26 107,448.31 1,970.88 109,419.19
Exhibit B
FY 1988-89(B)WATER FUND LOAN 18-YEAR
$1,902,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/26 650,582.05 - 650,582.05
FY 26-27 Interest - 1,691.51 1,691.51
Balance @ 6/30/27 650,582.05 1,691.51 652,273.56
13 I Payment @ 6/30/27 107,727.68 1,691.51 109,419.19
Balance @ 7/1/27 542,854.37 - 542,854.37
FY 27-28 Interest - 1,411.42 1,411.42
Balance @ 6/30/28 542,854.37 1,411.42 544,265.79
14 I Payment @ 6/30/28 108,007.77 1,411.42 109,419.19
Balance @ 7/1/28 434,846.60 - 434,846.60
FY 28-29 Interest - 1,130.60 1,130.60
Balance @ 6/30/29 434,846.60 1,130.60 435,977.20
15 I Payment @ 6/30/29 108,288.59 1,130.60 109,419.19
Balance @ 7/1/29 326,558.01 - 326,558.01
FY 29-30 Interest - 849.05 849.05
Balance @ 6/30/30 326,558.01 849.05 327,407.06
16 I Payment @ 6/30/30 108,570.14 849.05 109,419.19
Balance CO 7/1/30 217,987.87 - 217,987.87
FY 30-31 Interest - 566.77 566.77
Balance @ 6/30/31 217,987.87 566.77 218,554.64
17 I Payment @ 6/30/31 108,852.42 566.77 109,419.19
Balance @ 7/1/31 109,135.45 - 109,135.45
FY 31-32 Interest - 283.75 283.75
Balance @ 6/30/32 109,135.45 283.75 109,419.20
18 I Payment @ 6/30/32 109,135.45 283.75 109,419.20
Balance @ 7/1/32 - - 0.00
Exhibit B