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Home My WebLink About460 SA_CCv0001.pdf RESOLUTION NO. 460 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS TAKING CERTAIN ACTIONS IN CONFECTION. WITH THE PAYMENT OF ENFORCEABLE OBLIGATIONS OF THE SUCCESSOR AGENCY AND REQUESTING AND APPROVING OF A LOAN FROM THE CITY OF REDLANDS RECITALS WHEREAS, on November 1, 2011, the City Council of the City of Redlands (herein the "City") approved Resolution 7089 electing to serve as the Successor Agency to the former Redevelopment Agency of the City of Redlands (the "Agency") under Section 34173 of the Health and Safety Code; and WHEREAS, Assembly Bill No. 1484 was signed by the Governor of California on June 27, 2012, which, among other things, added Chapter 9 (commencing with Section 34191.1) to Part 1.85 of Division 24 of the Health and Safety Code; and WHEREAS, on July 9, 2012 the Agency received a demand for payment in the amount of $2,867,052 from the County of San Bernardino Auditor-Controller/Treasurer/Tax Collector pursuant to Section 34183.5(b)(2)(A)of the Health and Safety Code; and WHEREAS, On July 11, 2012 the Agency received a revised demand for payment in the amount of $2,601,269 (the "Payment") from the County of San Bernardino Auditor- Controller/Treasurer/Tax Collector pursuant to Section 34183.5(b)(2)(A) of the Health and Safety Code; and WHEREAS, On July 12, 2012, the Agency made the Payment to the County of San Bernardino Auditor-Controller/Treasurer/'Fax Collector, using the $2,535,662 balance held in its Agency Funds and a$65,607.37 loan from the City; and WHEREAS, as a result of making the Payment, the Agency no longer had any fund balance in its Agency funds and had enforceable obligations from July through December 2012 in the amount of$3,157,400 and; WHEREAS, pursuant to Section 34173(h) of the Health and Safety Code, a city that authorized the creation of a redevelopment agency may loan or grant funds to a successor agency for administrative costs, enforceable obligations, or project-related expenses at the city's discretion; and WHEREAS, the City and the Agency determined that it was in their respective best interests that the Agency pay the enforceable obligations, which included $2,880,794 in bond principal payments, as default by the Agency could potentially affect the creditworthiness of the City and the Agency; and I I:lcclerk K sc iuti ns',FtEDEVELt7PM N T-BLJ SSC?R AGEPv Y successor Agency Nos 452-\460 Loan successor Agency.6.25.11doe WHEREAS, because the Agency had insufficient funds to make the payments required pursuant to the ROPS out of existing Agency funds, the City Council of the City of Redlands determined that the City would provide a loan to the Agency in the amount of$3.157,460 to make these payments;and WHEREAS, the Agency subsequently listed the loan as an enforceable obligation on its ROPS III (January 2013 through June 2013); and WHEREAS, on October 22, 2012, the State Department of Finance ("DOF") issued its determination regarding the Agency's ROPS III and identified several items that the DOF disputed as enforceable obligations, including the loan from the City to the Agency in the amount of$65,607; and WHEREAS, the Agency subsequently participated in a "meet and confer" with the DOF to further discuss the disputed items on the Agency's ROPS 111. On December 18, 2012, and in a follow-up contact on January 8, 2013, the Agency was notified that the DOF completed its review of the Agency's ROPS 111, and that the DOF disallowed the $65,607 loan from the City to the Agency as an enforceable obligation. The City's loan to the Agency in the amount of $3,157,400 was neither questioned by the DOF, nor denied as an enforceable obligation as part of the DOF's review of the Agency's ROPS 111; and WHEREAS, on February 19, 2013, the Agency submitted its ROPS 13-14A to the DOF using the template provided by the DOF, and on April 6, 2013, the DOF issued its determination regarding the Agency's ROPS 13-14A and questioned the Agency's repayment terms for the City's $3,157,400 loan to the Agency; and WHEREAS, during April and May of 2013, the Agency participated in a "Meet and confer" with the DOF, and on May 17, 2013, the DOF issued its final determination which denied as an enforceable obligation a significant portion of the City's $3,157,400 loan to the Agency;and WHEREAS, the Agency disputes the determinations of the DOF that the City's loans to the Agency are not enforceable obligations and has determined to pursue all legal remedies available to the Agency, and WHERAS, the Agency and the City have further determined it is in their respective best interests for the City to loan to the Agency sufficient funds to enable the Agency to pay the estimated costs of the Agency's pursuit of such remedies; and WHEREAS, the loan would be evidenced by a promissory note requiring repayment of the loan by the Agency, including interest accrued at the current State of California Local Agency Investment Fund interest rate of.28 percent per annum, and the receipt of the funds shall be reflected on Recognized Obligation Payment Schedule or the administrative budget of the Agency and therefore subject to the oversight and approval of the Oversight Board; 2 1:\cclerkaesolutions\REDEVELOPMENT-SUCCESSOR AGENCY\Successor Agency Nos 452-\460 Loan Successor Agency.6.25.13.doc NOW, THEREFORE, BE IT RESOLVED by the Board of the Successor Agency to the former Redevelopment Agency of the City of Redlands as follows: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34171 Section 3. The Successor Agency hereby requests, and authorizes the acceptance of, a loan from the City of Redlands in the amount of Seventy Five Thousand Dollars($75,000) (the "Loan") and authorizes the Chairperson, or any Board member, to execute loan documents to evidence the Loan as an obligation of the Successor Agency. Section 4. The Successor Agency hereby authorizes and directs staff to use the Loan proceeds to make payments for enforceable obligations, administrative expenses and/or project- related expenses pursuant to the Successor's Agency approved Recognized Obligation Payment Schedules, including the Agency's pursuit of its aforementioned remedies. Section 5. This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq., hereafter the "Guidelines"). The Board of the Successor Agency has determined that this Resolution is not a "project" for purposes of CEQA, as the term is defined by Guidelines Section 15378, because this Resolution is an administrative activity that will not result in a direct or indirect physical change in the environment(Guidelines Section 15378(b)(5)). ADOPTED, SIGNED AND APPROVED this 16'h day of July, 2013. Al A Peter Aguilai, Chairman ATTEST. TT :a Sam fTwin, §&phary 3 I:kcclerk\Resolutions\REDEVELOPMENT-SUCCESSOR AGENCY\Successor Agency Nos 452-460 Loan Successor Agency.6.25.13.doe 1, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the Successor Agency of the Former Redevelopment Agency of the City of Redlands at a special meeting thereof,held on the 16th day of July, 2013,by the following vote: AYES: Members Harrison,Foster,Gardner,Gilbreath; Chairman Aguilar NOES: None ABSENT: None ABSTAIN: None Sam Irwin, Secretary 4 1:\cclerkiResolutions\REDEVELOPMFNT-SUCCESSOR AG NC` Agency Nos 452-1460 Loan Successor Agency.6.25.13.doc