OSB 14-012 RESOLUTION NO. OSB 14-012
A RESOLUTION OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY
APPROVING A FEBRUARY 28, 1989 (B) DRAINAGE 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, dated February 28, 1989 (February 28, 1989
(B) Drainage Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency
an amount equal to $738,000 from the City's Drainage Fund for the purpose of completing
Midland Road Storm Drain Improvements; 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 14-012
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 February 28, 1989
(B) Drainage Fund Loan, together with other information relating thereto, to the Oversight
Board and requested that the Oversight Board approve the February 28, 1989 (B)
Drainage Fund Loan, and find that the loan of funds under the February 28, 1989 (B)
Drainage 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 February 28, 1989 (B) Drainage Fund Loan and hereby finds and determines that the
loan of funds by the City to the former Redevelopment Agency under the February 28,
1989 (B) Drainage 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 February 28, 1989 (B)
Drainage Fund Loan reflect the repayment to the City of amounts advanced to
or on behalf of the former Redevelopment Agency in order to assist the
Redevelopment Agency with completing Twin Peaks Road Right-of-Way and
Midland Road Storm Drain Improvements 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
Resolution No. OSB 14-012
Page 3
adopted Redevelopment Plan. The Redevelopment Agency entered into the
February 28, 1989 (B) Drainage Fund Loan with the City in order to borrow
funds necessary for the Redevelopment Agency to pay costs associated with
completing Midland Road Storm Drain Improvements 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 February 28,
1989 (B) Drainage 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 February 28, 1989 (B) Drainage Fund Loan. The Oversight
Board hereby approves the February 28, 1989 (B) Drainage 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 February 28, 1989 (B) Drainage Fund
Loan Repayment Schedule (Exhibit B). The total principal and interest owed ("Amounts
Owed") for the February 28, 1989 (B) Drainage Fund Loan is $786,691.11. The Oversight
Board further determines that the repayment of Amounts Owed under the February 28,
1989 (B) Drainage Fund Loan is an enforceable obligation and the Successor Agency is
authorized to include the repayment of the February 28, 1989 (B) Drainage 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 Drainage 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
February 28, 1989 (B) Drainage Fund Loan are repaid in full to the City's Drainage Fund.
Section 4. Transmittal of February 28, 1989 (B) Drainage 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 February 28, 1989 (B) Drainage
Fund Loan as an enforceable obligation.
Resolution No. OSB 14-012
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 Tar , C it
ATTEST:
Sheila R. Cobian, CMC, Secretary
Resolution No. OSB 14-012
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 14-012 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 — February 28, 1989 Drainage Fund Loan Repayment Agreement and
Supporting Budget Documentation
Exhibit B — February 28, 1989 Drainage Fund Loan Repayment Schedule
I
pet . .
REPAYMENT AGREEMENT
.This Repayment Agreement entered in to as of the 28th day of February •
• 19 89 , 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 $ 738,000.00 to assist the Agency in paying the •
cost of the design and canstruction •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 Midland Road Storm
Drain 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 $ 738,000.00 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 .
•
.J
-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 thereof, 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 orie. 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 .
individually 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 r PO AY •
( a ' Z---•-------- .
By
• Carl R. Kruse, Mayor ' •
ATTEST: .
`.� Y o - V X11 1,- -
, . Marjorie K. Wahlsten, City Clerk . . . •
POWA' •ED7 ELOPMENT AGENCY '
, . . C....._.-...-;----1-Z_______:..... ......-7. .. . , •
By
Carl R. Kruse, Chairman
• ATTEST: ' - •
Marjorie J K. Wahl sten,. Secretary • • _
6/G/Repayl-3/CP33
' ' Exhibit A
4
PUBLIC IMPROVEMENT. PROMISSORY NOTE ', . ' '
Poway, California •
Dates as of: March.1 • , 1689 .
. •
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 $ 738,000.00" ,—in lawful .
money of the United States of America, together with interest thereon. the
unpaid balance thereof from the date hereof at the irate 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 m.onies.are available from• " -' ,
• tax increment or other:sources. • •
POWAY RE'EVELOPMENT AGENCY ". --Z_- By . • t C ' • •, • "
Carl R. Kruse, Chairman '
ATTEST: . - .
511)0.4)*(k4:4- /�. 5-V.:, • •
.. Marjorie K. Wahisten, Secretary • . •
.0
; ', • ••
i .
•
t .
t• . • . . • •
. EXHIBIT ."A"
• r
• • Exhibit A • - . .. •
19
CITY OF POWAY
DRAINAGE FUND
1987-1988 1988-1989 1988-1989 1989-1990 1989-1990
ACTUAL BUDGET ESTIMATED PROPOSED APPROVED
IIFUND ACTIVITY DETAIL
BEGINNING BALANSE-July 1 $2,447,637 $2,430,688 $ 2,426,119 $1,922,373 $1,922,373
Prior Years Appropriation - - - - -
Revenues. 612,798 512,600 548,097 525,250 525,250
1 TOTAL FUNDS AVAILABLE $3,060,435 $2,943,288 $2,974,216 $2,447,623 $2,447,623
EXPENDITURES
IIOperating Expenses:
Admin. Services $ - $ 8,098 $ 10,643 $ 8,477 $ 8,504
Public Services 189,264 234,480 227,400 342,620 342,620
Total Operating' Expenses $ 189,264 $ 242,578 $ 238,043 $ 351,097 $ . 351,124
11 Capital Projects:
Flood Control & Drainage$ 225,052 $ - $ - $ . 201,000 $ 201,000
�; . Government Buildings - - - 93 000 93,000
IF Total Capital Projects $ 225,052 $ - $ - $ 294,000 $ 294,000
TOTAL EXPENDITURES $ 414,316 $ 242,578 $ 238,043 $ 645,097 $ 645,124
TRANSFERS/LOANS-In (Out)
1` Transfer to General Fund $ - $ - $ - $ - $ -
Loan to Redevelopment.
Agency (220,000) - ;(813,800) - -
TOTAL TRANSFERS/LOANS $ (220,000) $ - $ (813,800) $ $ -
TOTAL APPROPRIATIONS
_!
: ENDING BALANCE-June 30 $2,426,119 $2,700,710 $ 1.,922,373 $1,802,526. $1,802,499
• •
Exhibit A
222
REDEVELOPMENT AGENCY
CAPITAL IMPROVEMENT PROGRAM DETAIL
Department: Activity:
REDEVELOPMENT AGENCY STREETS AND HIGHWAYS
ACTIVITY COMMENTARY
5207 TWIN PEAKS ROAD - MIDLAND TO ESPOLA
This project provides for the widening to the ultimate right-of-way of Twin Peaks Road
between Midland Road and Espola Road. Design was completed in FY 1987-88 with
construction to follow. This project, was completed in FY 1988-89.
Cost Estimate - $764,003 Funding Source - FY 90-91
Loan from Water Fund $43,091
FY 87-88 - $500.000 .
1FY 88-89 - 75,8001
FY 89-90 - 145,112
FY 90-91 - 43,091
•
5216 MARK STEVENS ROAD MODIFICATIONS
•
This project provides for the construction of a road connecting Mark Stevens Road and
Ipava Drive, eliminating the current access to Poway Road.
Cost Estimate - $73,100
FY 86-87 - $35,000
FY 87-88 - $38,100
5226 COMMUNITY ROAD WALL AND LANDSCAPING
This project consists of replacing the existing wall along Community Road. It also
includes the installation of LPS street lights in place of the existing HPS and bus stop
benches. This project was completed in FY 1988-89. .
5
Cost Estimate - $277,400
FY 86-87 - $ 12,000
FY 87-88 - $265,400 4
1
•
Exhibit A •
250
• REDEVELOPMENT AGENCY
CAPITAL IMPROVEMENT .PROGRAM DETAIL
Department: Activity:
REDEVELOPMENT AGENCY FLOOD CONTROL AND DRAINAGE
ACTIVITY COMMENTARY
5408 OAK KNOLL STORM DRAIN
This project provides for storm drain and related construction on Oak Knoll Road.
Cost Estimate - $111,164
FY 88-89 - $111,164
•
5409 MIDLAND ROAD STORM DRAIN EXTENSION
Construct the Midland Road-master storm drain facility _extension from south.of •
•Agsten Lane to Janette Lane and Midland Road. Project. will be. partially funded by
drainage fees from four development projects in the drainage basin.
Cost Estimate - $738,000
FY 88-89 - $738,000
5410 RATTLESNAKE CREEK DETENTION BASIN
This project .will provide for the design of a.detention basin for the upper
Rattlesnake Creek area.
•
• Cost Estimate - $206,000
FY 89-90 - $206,000
1
Exhibit A •
FEBRUARY 28, 1989 DRAINAGE FUND LOAN 18-YEAR
$738,000 Principal Balance
TAA:-jj ,_____a,,,"°15=!:rjr;;e'attli"'"!";::i7'_d='''''—"rAr:.;=r,I:t.rVWlijt'Hrttlr;kLM417R6':"B"7';'-
Pymt# Balances Principal Interest Total
Balance @ 6/30/15 738,000.00 48,691.11 786,691.11
1 I Payment @ 6/30/15 (4,014.75) 48,691.11 44,676.36
Balance @ 7/1/15 742,014.75 - 742,014.75
FY 15-16 Interest - 1,929.24 1,929.24
Balance @ 6/30/16 742,014.75 1,929.24 743,943.99
2 I Payment @ 6/30/16 42,747.12 1,929.24 44,676.36
Balance @ 7/1/16 699,267.63 - 699,267.63
FY 16-17 Interest - 1,818.10 1,818.10
Balance @ 6/30/17 699,267.63 1,818.10 701,085.73.
3 I Payment @ 6/30/17 42,858.26 1,818.10 44,676.36
Balance @ 7/1/17 656,409.37 - 656,409.37
FY 17-18 Interest - 1,706.66 1,706.66
Balance @ 6/30/18 656,409:37 1,706.66 658,116.03
4 I Payment @ 6/30/18 42,969.70 1,706.66 44,676.36
Balance @ 7/1/18 613,439.67 - 613,439.67
FY 18-19 Interest - 1,594.94 1,594.94
Balance @ 6/30/19 613,439.67 1,594.94 615,034.61
5 I Payment @ 6/30/19 43,081.42 1,594.94 44,676.36
Balance @ 7/1/19 570,358.25 - 570,358.25
FY 19-20 Interest - 1,482.93 1,482.93
Balance @ 6/30/20 570,358.25 1,482.93 571,841.18
6 I Payment @ 6/30/20 43,193.43 1,482.93 44,676.36
Exhibit B
FEBRUARY 28, 1989 DRAINAGE FUND LOAN 18-YEAR
$738,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/20 527,164.82 - 527,164.82
FY 20-21 Interest - 1,370.63 1,370.63
Balance @ 6/30/21 527,164.82 1,370.63 528,535.45
7 I Payment @ 6/30/21 43,305.73 1,370.63 44,676.36
Balance @ 7/1/21 483,859.09 - 483,859.09
FY 21-22 Interest - 1,258.03 1,258.03
Balance @ 6/30/22 483,859.09 1,258.03 485,117.12
8 I Payment @ 6/30/22 43,418.33 1,258.03 44,676.36
Balance @ 7/1/22 440,440.76 - 440,440.76
FY 22-23 Interest - 1,145.15 1,145.15
Balance @ 6/30/23 440,440.76 1,145.15 441,585.91
9 1 Payment @ 6/30/23 43,531.21 1,145.15 44,676.36
Balance @ 7/1/23 396,909.55 - 396,909.55
FY 23-24 Interest - 1,031.96 1,031.96
Balance @ 6/30/24 396,909.55 1,031.96 397,941.51
10 I Payment @ 6/30/24 43,644.40 1,031.96 44,676.36
Balance @ 7/1/24 353,265.15 - 353,265.15
FY 24-25 Interest - 918.49 918.49
Balance @ 6/30/25 353,265.15 918.49 354,183.64
11 I Payment @ 6/30/25 43,757.87 918.49 44,676.36
Balance @ 7/1/25 309,507.28 - 309,507.28
FY 25-26 Interest - 804.72 804.72
Balance @ 6/30/26 309,507.28 804.72 310,312.00
12 I Payment @ 6/30/26 43,871.64 804.72 44,676.36
Exhibit B
FEBRUARY 28, 1989 DRAINAGE FUND LOAN 18-YEAR
$738,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/26 265,635.64 - 265,635.64
FY'26-27 Interest - 690.65 690.65
Balance @ 6/30/27 265,635.64 690.65 266,326.29
13 I Payment @ 6/30/27 43,985.71 690.65 44,676.36
Balance @ 7/1/27 221,649.93 - 221,649.93
FY 27-28 Interest - 576.29 576.29
Balance @ 6/30/28 221,649.93 576.29 222,226.22
14 I Payment @ 6/30/28 44,100.07 576.29 44,676.36 •
Balance @ 7/1/28 177,549.86 - 177,549.86
FY 28-29 Interest - 461.63 461.63
Balance @ 6/30/29 177,549.86 461.63 178,011.49
15 I Payment @ 6/30/29 44,214.73 461.63 44,676.36
Balance @ 7/1/29 133,335.13 - 133,335.13
FY 29-30 Interest - 346.67 346.67
Balance @ 6/30/30 133,335.13 346.67 133,681.80
16 I Payment @ 6/30/30 44,329.69 346.67 44,676.36
Balance @ 7/1/30 89,005.44 - 89,005.44
FY 30-31 Interest - 231.41 231.41
Balance @ 6/30/31 89,005.44 231.41 89,236.85
17 I Payment @ 6/30/31 44,444.95 231.41 44,676.36
Balance @ 7/1/31 44,560.49 - 44,560.49
FY 31-32 Interest 115.86 115.86
Balance @ 6/30/32 44,560.49 115.86 44,676.35
18 1 Payment @ 6/30/32 44,560.49 115.86 44,676.35
Balance @ 7/1/32 - - -
•
Exhibit B