OSB 14-014 RESOLUTION NO. OSB 14-014
A RESOLUTION OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY
APPROVING A JANUARY 15, 1992 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 15, 1992 (January 15, 1992
Drainage Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an
amount equal to $90,000 from the City's Drainage Fund for the purpose of completing
Temple Street 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 14-014
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 15, 1992
Drainage Fund Loan, together with other information relating thereto, to the Oversight
Board and requested that the Oversight Board approve the January 15, 1992 Drainage
Fund Loan, and find that the loan of funds under the January 15, 1992 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 15, 1992 Drainage Fund Loan and hereby finds and determines that the loan
of funds by the City to the former Redevelopment Agency under the January 15, 1992
Drainage 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 January 15, 1992 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 Temple Street 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 14-014
Page 3
adopted Redevelopment Plan. The Redevelopment Agency entered into the
January 15, 1992 Drainage Fund Loan with the City in order to borrow funds
necessary for the Redevelopment Agency to pay costs associated with
completing Temple Street 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 15,
1992 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 15, 1992 Drainage Fund Loan. The Oversight Board
hereby approves the January 15, 1992 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 15, 1992 Drainage Fund Loan Repayment
Schedule (Exhibit B). The total principal and interest owed ("Amounts Owed") for the
January 15, 1992 Drainage Fund Loan is $95,489.06. The Oversight Board further
determines that the repayment of Amounts Owed under the January 15, 1992 Drainage
Fund Loan is an enforceable obligation and the Successor Agency is authorized to include
the repayment of the January 15, 1992 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 15, 1992 Drainage
Fund Loan are repaid in full to the City's Drainage Fund.
Section 4. Transmittal of January 15, 1992 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 15, 1992 Drainage Fund
Loan as an enforceable obligation.
Resolution No. OSB 14-014
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, Ch it u
ATTEST:
Sheila'R. Cobian, CMC, Secretary
Resolution No. OSB 14-014
Page 5
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Sheila R. Cobian, Secretary of the Successor Agency to the Poway
Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing
Resolution No. OSB 14-014 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
AAA, C036-lirki.,-
Sheila R. Cobian, CMC, Secretary
Attachments:
Exhibit A — January 15, 1992 Drainage Fund Loan Repayment Agreement and
Supporting Budget Documentation
Exhibit B — January 15, 1992 Drainage Fund Loan Repayment Schedule
•
L
•
•
p.
REPAYMENT AGREE1IENT
This Repayment,Agreement entered: in tb as of the 15th„day 'of January ,
19.92
.. 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 Areal') which is the subject
.of a redevelopment plan approved by the City Council of the City by ordinance
adopted on December '13, .1983.
•
R. The :City 4unci'1 of the City desires •to advance a loan to the Agency in
the principal amount cif up, to $90.000.00 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 conditi-ons set forth herein
(the "Public Improvement ,Prb ects Loan").
C. The purpose of this loan is to finance construction of Temple
Street storm drain :from ,Brighton • project..
to Rattlesnake Creels
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants.
'and conditions set forth. h'erei'n, the parties hereto' agree as follows:
.Section 1. The Cfty hereby advances; to the Agency. a Public Improvement
Projects Loan in the principal amount of up to $. 9:0,: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 :ImproVemen.t
Projects Loan oh the:terms and provisions. set 'forth: herein. The Agency shall be
authorized' to draw 'against the PUblic Imprbvertient Projects Loan up to the
authorized princi'pal' amount thereof from time to time in aecbrdance with
generally accepted accounting principles. The Ageiiricy',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 'herei:n and in the recitals hereinabove •shall be
repeyed 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.
•
Sect.ion• 3: The .parties hereto acknowledge and agree that the Agency's obli-
gation to repay amounts evidenced by the Promissory Note referred to herein
shell 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 fo.r the Project Area.
• Exhibit A
:r p
_Z_
,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, wi'thout. 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 4obligations of the
Agency' evidenced b9 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
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.
CIT OF POWAY
L"- _.
Jan oldsmi' 'h,..Mayor
`ATTEST:I �J •
t •l K. 2. V a�
Marjori Wahlsten, City Clerk
POWA REDEVELOPA NT AGENCY
. .r .ate.
• Jan o,ldn Cha •n
ATTEST: 11_ 2Qt/kKk
•
-
Marior . Wahlsten, Secretary
6/G/.Repayl-3/.CP33
Exhibit A
Alk-
PUBLIC IKPROVENENT PROJECTS PoISSORY'NOTE •
•
.Poway., Cal i.fornia.
• Dated as of:: January as , .1.g p?
The: Poway Redevelopment Agency, a public body corporate and politic
(."Agencyu), 'for value.. ;redei:ved; hereby promises! to pay the City of Poway, a,
municipal corporation ("City"l the principal sum of V 90,0'00.00 , in lawful
money of the United •States of ,America, together with interest thereon on the
unpaid balance thereof from:;theL:date hereof at the; rate of return on the City of
.Poway''s investments as calculated. This rate i:s' not to.exceed 12% or the maxi-
mum interest rate that. May b'e lawfully .paid by a. Redevelopment .Age''ncy.
Repayment of principal and- interest shall be made as moni=et are available from
. tax increment or other sources.
POWAY REDEVEO'MENT AGENCY
•
••
( Jan o 'dsmi th',. Chairman
ATTEST:
•
• k
Mar,ori Wahlsten, Secretary
• EXHIBIT ."A"
Exhibit A
21
li CITY OF POWAY
DRAINAGE FUND
(FUNDS 12 AND 24)
1
1989-1990 1990-1991 1990-1991 1991-1992 1991-1992
ACTUAL BUDGET ACTUAL PROPOSED APPROVED
FUND ACTIVITY DETAIL
•
ilBEGINNING BALAikE-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
1 EXPENDITURES .
'Operating Expenses:
Admin. Services $ 62,079 $ 13,139 $ 11,317 $ 14,691 $ 14,691
ilPublic 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) •
1. Loan to Redevelopment
Agency $ - $ - $ (327,000) $ $ (90,000)
. TOTAL TRANSFERS/LOANS $ - $ - $ (327,000) $ • - $ (90,000) .
TOTAL APPROPRIATIONS $ - $ - $ - $ - $ -
•• ENDING BALANCE-June 30 $ 809,905 $1,328,142 $ 575,895 $ 528,614 $ 438,614
k,::.::.-
S.,
:;: Exhibit A
•
•
260
•
REDEVELOPMENT AGENCY ` 4
CAPITAL IMPROVEMENT PROGRAM DETAIL
Department: - Activity:
REDEVELOPMENT AGENCY _ FLOOD CONTROL AND DRAINAGE
ACTIVITY CONNENTARY
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 j°
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) 6
FY 88-89 - $738,000
•
FY 90-91 - 327,000
FY 91-92 - (3,918) r
•
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
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
1 13
•
is
Exhibit A
•
JANUARY 15, 1992 DRAINAGE FUND (AB 1600) LOAN 18-YEAR
$90,000 Principal Balance
Annual payment on 6/30 of each fiscal year(18 year repayment) 5,422 84
LAIF Interest rate 0.26%
Pymt# Balances Principal Interest Total
Balance @ 6/30/15 90,000.00 5,489.06 95,489.06
1 I Payment @ 6/30/15 (66.22) 5,489.06 5,422.84
Balance @ 7/1/15 90,066.22 - 90,066.22
FY 15-16 Interest - 234.17 234.17
Balance @ 6/30/16 90,066.22 234.17 90,300.39
2 I Payment @ 6/30/16 5,188.67 234.17 5,422.84
Balance @ 7/1/16 84,877.55 - 84,877.55
FY 16-17 Interest - 220.68 220.68
Balance @ 6/30/17 84,877.55 220.68 85,098.23
3 I Payment @ 6/30/17 5,202.16 220.68 5,422.84
Balance @ 7/1/17 79,675.39 - 79,675.39
FY 17-18 Interest - 207.16 207.16
Balance @ 6/30/18 79,675.39 207.16 79,882.55
4 I Payment @ 6/30/18 5,215.68 207.16 5,422.84
Balance @ 7/1/18 74,459.71 - 74,459.71
FY 18-19 Interest - 193.60 193.60
Balance @ 6/30/19 74,459.71 193.60 74,653.31
5 I Payment @ 6/30/19 5,229.24 193.60 5,422.84
Balance @ 7/1/19 69,230.47 - 69,230.47
FY 19-20 Interest - 180.00 180.00
Balance CO 6/30/20 69,230.47 180.00 69,410.47
6 I Payment @ 6/30/20 5,242.84 180.00 5,422.84
Exhibit B
JANUARY 15, 1992 DRAINAGE FUND(AB 1600) LOAN 18-YEAR
$90,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/20 63,987.63 - 63,987.63
FY 20-21 Interest - 166.37 166.37
Balance @ 6/30/21 63,987.63 166.37 64,154.00
7 I Payment @ 6/30/21 5,256.47 166.37 5,422.84
Balance @ 7/1/21 58,731.16 - 58,731.16
FY 21-22 Interest - 152.70 152.70
Balance @ 6/30/22 58,731.16 152.70 58,883.86
8 I Payment @ 6/30/22 5,270.14 152.70 5,422.84
Balance CO 7/1/22 53,461.02 - 53,461.02
FY 22-23 Interest - 139.00 139.00
Balance @ 6/30/23 53,461.02 139.00 53,600.02
9 I Payment @ 6/30/23 5,283.84 139.00 5,422.84
Balance @ 7/1/23 48,177.18 - 48,177.18
FY 23-24 Interest - 125.26 125.26
Balance @ 6/30/24 48,177.18 125.26 48,302.44
10 I Payment @ 6/30/24 5,297.58 125.26 5,422.84
Balance @ 7/1/24 42,879.60 - 42,879.60
FY 24-25 Interest - 111.49 111.49
Balance @ 6/30/25 42,879.60 111.49 42,991.09
11 I Payment @ 6/30/25 5,311.35 111.49 5,422.84
Balance @ 7/1/25 37,568.25 - 37,568.25
FY 25-26 Interest - 97.68 97.68
Balance @ 6/30/26 37,568.25 97.68 37,665.93
12 I Payment @ 6/30/26 5,325.16 97.68 5,422.84
Exhibit B
JANUARY 15, 1992 DRAINAGE FUND(AB 1600) LOAN 18-YEAR
$90,000 Principal Balance
Continued
Pymt# Balances Principal Interest Total
Balance @ 7/1/26 32,243.09 - 32,243.09
FY 26-27 Interest - 83.83 83.83
Balance @ 6/30/27 32,243.09 83.83 32,326.92
13 I Payment @ 6/30/27 5,339.01 83.83 5,422.84
Balance @ 7/1/27 26,904.08 - 26,904.08
FY 27-28 Interest - 69.95 69.95
Balance @ 6/30/28 26,904.08 69.95 26,974.03
14 I Payment @ 6/30/28 5,352.89 69.95 5,422.84
Balance @ 7/1/28 21,551.19 - 21,551.19
FY 28-29 Interest - 56.03 56.03
Balance @ 6/30/29 21,551.19 56.03 21,607.22
15 I Payment @ 6/30/29 5,366.81 56.03 5,422.84
Balance @ 7/1/29 16,184.38 - 16,184.38
FY 29-30 Interest - 42.08 42.08
Balance @ 6/30/30 16,184.38 42.08 16,226.46
16 I Payment @ 6/30/30 5,380.76 42.08 5,422.84
Balance @ 7/1/30 10,803.62 - 10,803.62
FY 30-31 Interest - 28.09 28.09
Balance @ 6/30/31 10,803.62 28.09 10,831.71
17 I Payment @ 6/30/31 5,394.75 28.09 5,422.84
Balance @ 7/1/31 5,408.87 - 5,408.87
FY 31-32 Interest - 14.06 14.06
Balance @ 6/30/32 5,408.87 14.06 5,422.93
18 I Payment @ 6/30/32 5,408.87 14.06 5,422.93
Balance @ 7/1/32 - - 0.00
Exhibit B