OSB 14-013 RESOLUTION NO. OSB 14-013
A RESOLUTION OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY
APPROVING A JANUARY 29, 1991 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 January 29, 1991 (January 29, 1991
Drainage Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an
amount equal to $327,000 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 14-013
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 January 29, 1991
Drainage Fund Loan, together with other information relating thereto, to the Oversight
Board and requested that the Oversight Board approve the January 29, 1991 Drainage
Fund Loan, and find that the loan of funds under the January 29, 1991 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 January 29, 1991 Drainage Fund Loan and hereby finds and determines that the loan
of funds by the City to the former Redevelopment Agency under the January 29, 1991
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 January 29, 1991 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 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 14-013
Page 3
adopted Redevelopment Plan. The Redevelopment Agency entered into the
January 29, 1991 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 January 29,
1991 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 January 29, 1991 Drainage Fund Loan. The Oversight Board
hereby approves the January 29, 1991 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 January 29, 1991 Drainage Fund Loan Repayment
Schedule (Exhibit B). The total principal and interest owed ("Amounts Owed") for the
January 29, 1991 Drainage Fund Loan is $347,761.19. The Oversight Board further
determines that the repayment of Amounts Owed under the January 29, 1991 Drainage
Fund Loan is an enforceable obligation and the Successor Agency is authorized to include
the repayment of the January 29, 1991 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 January 29, 1991 Drainage
Fund Loan are repaid in full to the City's Drainage Fund.
Section 4. Transmittal of January 29, 1991 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 January 29, 1991 Drainage Fund
Loan as an enforceable obligation.
Resolution No. OSB 14-013
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.
IL
Bruce Tarzy, • air
ATTEST:
^ LSDe1 1
Sheilaan, CMC, Secretary
Resolution No. OSB 14-013
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 14-013 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 Cobian, CMC, Secretary •
Attachments:
Exhibit A — January 29, 1991 Drainage Fund Loan Repayment Agreement and
Supporting Budget Documentation
Exhibit B — January 29, 1991 Drainage Fund Loan Repayment Schedule
., `
•
REPAYMENT AGREENEkT
•
This Repayment Agreement entered in to as of the 29th day of January _
19 91 , by. and between the Poway Redevelopment Agency, a public body, corporate
and politic (the I"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 $, 327,000.00 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 Drainage System
Improvements on Midland Road 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 $ 3.27,000.00 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 to 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
•-'
i^
i PUBLIC II4PROVENENT PROJECTS PROMISSORY NOTE
Poway, California
Dated as of: January 29 ., 19_21
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 ("Cityu) the principal sum of $ 327,C10.0.00 , in lawful
money of the. United States of America, together with interest thereon on the
unpaid balance thereof fcom'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 .'EDEVE 0•MENT AGENCY
1 Go , Chairman
ATTEST: •
y / i64-,
Marjori . Wahlsten, Secretary
• EXHIBIT "A"
Exhibit A
el
CITY OF POWAY
•
DRAINAGE FUND
•
(FUNDS 12 AND 24)
1989-1990 1990-1991 1990-1991 1991-1992 1991-1992
ACTUAL BUDGET ACTUAL PROPOSED APPROVED
FUND ACTIVITY DETAIL
BEGINNING BALANCE-July 1 . $ 816,643 $1,081,911 $ 809,905 $ 575,895 $ 575,895
Prior Years Appropriation - - - - -
Revenues 700,648 548,320 435,868 443,590 443,590
TOTAL FUNDS AVAILABLE $1,517,291 $1,630,231 $1,245,773 $1,019,485 $1,019,485
EXPENDITURES .
•
Operating Expenses:
Admin. Services $ 62,079 $ 13,139 $ 11,317 $ 14,691 $ 14,691
Public Services 236,607 288,950 313,994 306,180 306,180
Total Operating Expenses $ 298,686 $ 302,089 $ 325,311 $ 320,871 $ 320,871
Capital Projects:
Flood Control & Drainage $ 408,700 $ - $ 17,567 $ 170,000 $ 170,000
Government Buildings - - - -Total Capital Projects $ 408,700 $ - . $ 17,567 $ 170,000 $ 170,000
TOTAL EXPENDITURES $ 707,386 $ 302,089 $ 342,878 $ 490,871 $ 490,871
TRANSFERS/LOANS-In (Out)
Loan to Redevelopment
Agency $ - $ - $ (327,000) $ - $ (90,000)
TOTAL TRANSFERS/LOANS $ - $ - $ (327,000) $ 0 - $ (90,000)
TOTAL APPROPRIATIONS $ - $ - $ - $ - $ -
`' ENDING BALANCE-June 30 $ 809,905 $1,328,142 575,895 528,614 438,614
Exhibit A
2 111 60
•
REDEVELOPMENT AGENCY
CAPITAL IMPROVEMENT PROGRAM DETAIL
Department: Activity:
REDEVELOPMENT AGENCY FLOOD CONTROL AND DRAINAGE
ACTIVITY COMMENTARY
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 - $1,061,082 Funding Source - FY 91-92
RDA Bond Proceeds (#39) $(3,918)
FY 88-89 - $738,000
FY 90-91 - 327,000 •
FY 91-92 - (3,918)
•
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
t,
5411 TEMPLE STREET STORM DRAIN
This project provides for the construction of the Temple Street storm drain from
Brighton Avenue to Rattlesnake Creek.
Cost Estimate - $90,000 Funding Source - FY 91-92
Loan from Drainage Fund (#24) $90,000
FY 91-92 - $90,000
Exhibit A
JANUARY 29, 1991 DRAINAGE FUND (AB 1600) LOAN 18-YEAR
$327,000 Principal Balance
Annual payment on 6/30 of each fiscal year 418 year repayment) 19,74943
1 iIF interest.rate O.28%
Pymt# Balances Principal Interest Total
Balance @ 6/30/15 327,000.00 20,761.19 347,761.19
1 I Payment @ 6/30/15 (1,011.76) 20,761.19 19,749.43
Balance @ 7/1/15 328,011.76 - 328,011.76
FY 15-16 Interest - 852.83 852.83
Balance @ 6/30/16 328,011.76 852.83 328,864.59
2 I Payment @ 6/30/16 18,896.60 852.83 19,749.43
Balance @ 7/1/16 309,115.16 - 309,115.16
FY 16-17 Interest - 803.70 803.70
Balance @ 6/30/17 309,115.16 803.70 309,918.86
3 1 Payment @ 6/30/17 18,945.73 803.70 19,749.43
Balance @ 7/1/17 290,169.43 - 290,169.43
FY 17-18 Interest - 754.44 754.44
Balance @ 6/30/18 290,169.43 754.44 290,923.87
4 1 Payment @ 6/30/18 18,994.99 754.44 19,749.43
Balance @ 7/1/18 271,174.44 - 271,174.44
FY 18-19 Interest - 705.05 705.05
Balance @ 6/30/19 271,174.44 705.05 271,879.49
5 1 Payment @ 6/30/19 19,044.38 705.05 19,749.43
Balance @ 7/1/19 252,130.06 - 252,130.06
FY 19-20 Interest - 655.54 655.54
Balance @ 6/30/20 252,130.06 655.54 252,785.60
6 1 Payment @ 6/30/20 19,093.89 655.54 19,749.43
Exhibit B
JANUARY 29, 1991 DRAINAGE FUND (AB 1600) LOAN 18-YEAR
$327,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/20 233,036.17 - 233,036.17
FY 20-21 Interest - 605.89 605.89
Balance @ 6/30/21 233,036.17 605.89 233,642.06
7 I Payment @ 6/30/21 19,143.54 605.89 19,749.43
Balance @ 7/1/21 213,892.63 - 213,892.63
FY 21-22 Interest - 556.12 556.12
Balance @ 6/30/22 213,892.63 556.12 214,448.75
8 I Payment @ 6/30/22 19,193.31 556.12 19,749.43
Balance @ 7/1/22 194,699.32 - 194,699.32
FY 22-23 Interest - 506.22 506.22
Balance CO 6/30/23 194,699.32 506.22 195,205.54
9 I Payment @ 6/30/23 19,243.21 506.22 19,749.43
Balance @ 7/1/23 175,456.11 - 175,456.11
FY 23-24 Interest - 456.19 456.19
Balance @ 6/30/24 175,456.11 456.19 175,912.30
10 I Payment @ 6/30/24 19,293.24 456.19 19,749.43
Balance @ 7/1/24 156,162.87 - 156,162.87
FY 24-25 Interest - 406.02 406.02
Balance @ 6/30/25 156,162.87 406.02 156,568.89
11 I Payment @ 6/30/25 19,343.41 406.02 19,749.43
Balance @ 7/1/25 136,819.46 - 136,819.46
FY 25-26 Interest - 355.73 355.73
Balance @ 6/30/26 136,819.46 355.73 137,175.19
12 I Payment @ 6/30/26 19,393.70 355.73 19,749.43
Exhibit B
JANUARY 29, 1991 DRAINAGE FUND(AB 1600) LOAN 18-YEAR
$327,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/26 117,425.76 - 117,425.76
FY 26-27 Interest - 305.31 305.31
Balance @ 6/30/27 117,425.76 305.31 117,731.07
13 I Payment @ 6/30/27 19,444.12 305.31 19,749.43
Balance @ 7/1/27 97,981.64 - 97,981.64
FY 27-28 Interest - 254.75 254.75
Balance @ 6/30/28 97,981.64 254.75 98,236.39
14 I Payment @ 6/30/28 19,494.68 254.75 19,749.43
Balance @ 7/1/28 78,486.96 - 78,486.96
FY 28-29 Interest - 204.07 204.07
Balance @ 6/30/29 78,486.96 204.07 78,691.03
15 I Payment @ 6/30/29 19,545.36 204.07 19,749.43
Balance @ 7/1/29 58,941.60 - 58,941.60
FY 29-30 Interest - 153.25 153.25
Balance @ 6/30/30 58,941.60 153.25 59,094.85
16 1 Payment @ 6/30/30 19,596.18 153.25 19,749.43
Balance @ 7/1/30 39,345.42 - 39,345.42
FY 30-31 Interest - 102.30 102.30
Balance @ 6/30/31 39,345.42 102.30 39,447.72
17 1 Payment @ 6/30/31 19,647.13 102.30 19,749.43
Balance @ 7/1/31 19,698.29 - 19,698.29
FY 31-32 Interest - 51.22 51.22
Balance @ 6/30/32 19,698.29 51.22 19,749.51
18 I Payment @ 6/30/32 19,698.29 51.22 19,749.51
Balance CO 7/1/32 0.00 - 0.00
Exhibit B