R 4400 RESOLUTION NO. 4400
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING A COOPERATION
AND FUNDING AGREEMENT FOR PAYMENT OR
REIMBURSEMENT OF ADMINISTRATIVE EXPENSES BY
AND BETWEEN THE CITY OF ARROYO GRANDE AND
THE REDEVELOPMENT AGENCY OF THE CITY OF
ARROYO GRANDE
WHEREAS, by previous action duly and regularly taken, the City Council of the City of
Arroyo Grande, pursuant to the Community Redevelopment Law of the State of
California (Health & Safety Code § 33000 et seq.) ("CRL"), adopted the Redevelopment
Plan for the Arroyo Grande Redevelopment Project Area ("Redevelopment Plan" or
"Project Area," as appropriate), and
WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken
redevelopment projects in the Project Area to eliminate blight, to improve public facilities
and infrastructure, to renovate and construct affordable housing, and to enter into
agreements with private parties to create jobs and expand the local economy; and
WHEREAS, for the remainder of the life of the Redevelopment Plan and Project Area,
the Agency intends to implement a variety of redevelopment projects and programs to
continue to eliminate and prevent blight, stimulate and expand the economic growth of
the Project Area, create and develop local job opportunities, alleviate deficiencies in
public infrastructure, and expand the opportunities for affordable housing, to name a
few; and
WHEREAS, pursuant to Section 33220 of the CRL, any public body is authorized to
enter into an agreement with the Agency for the purpose of aiding and cooperating in
the planning, undertaking, construction, or operation of redevelopment projects located
within the jurisdiction in which such public body is authorized to act, upon the terms and
with or without consideration as such public body determines, and
WHEREAS, pursuant to Section 33126(b) of the CRL, the Agency may enter into a
contract with any other public agency pursuant to which such public agency furnishes
necessary staff services associated with or required by redevelopment; and
WHEREAS, pursuant to California Health and Safety Code Section 33220 and City's
police powers, City has the authority to aid and cooperate with Agency in the planning,
undertaking, construction or operation of redevelopment projects within the area in
which City and Agency are authorized to act, and
WHEREAS, in carrying out the Redevelopment Plan, the Agency is utilizing the staff
and other resources of the City, for example the City Manager of the City serves as the
Executive Director of the Agency and staff in various City departments perform
functions and provide administrative services to the Agency, including but not limited to
City Clerk, City legal counsel, Administration, Finance, Community Development
RESOLUTION NO. 4400
PAGE 2
including Planning and Building, City Engineer/Public Works, and Community Services
(collectively, the "City's Administration Service Provider Departments"); and
WHEREAS, the City's Administration Service Provider Departments devote substantial
time in operating the Agency, including but not limited to gathering information relating
to the Redevelopment Plan and the Project Area, compiling, analyzing, and reporting
data on numerous State-mandated reports, managing projects funded through tax
increment, conferring and negotiating with developers and potential developers of land
within the Project Area, and undertaking planning and administrative activities in
connection with the production; improvement and preservation of affordable housing,
among other functions and activities; and
WHEREAS, the Agency. and City, by annual budget actions, have implemented the
Agency's and City's authority under the CRL, and under the City's police powers, for the
City to aid the Agency and cooperate with the Agency in the planning, undertaking,
developing, and/or operating of redevelopment projects located within the Project Area
and, as may be authorized under the CRL, portions of the City outside the Project Area,
by the Agency engaging the services of the City to provide administrative services to
assure the proper and legal functioning of the Agency;'and
WHEREAS, a Cooperation and Funding Agreement for Payment or Reimbursement of
Administrative Expenses ("Agreement") by and between the City and Agency has been
prepared to document and effectuate the provision of administrative services to the
Agency by the City's Administration Service Provider Departments; and
WHEREAS, the City adopted Ordinance No. 636 ("Ordinance"), thereby enabling the
City and Agency to participate in the "Alternative Voluntary Redevelopment Program"
pursuant to Part 1.9 of Division 24 of the Health and Safety Code ("Part 1.9"); and
WHEREAS, the obligations of the Agency under the Agreement are authorized by City's
agreeing to participate in the Alternative Voluntary Redevelopment Program and shall
constitute an indebtedness of the Agency for the purpose of carrying out the
Redevelopment Plan for the Project'Area; and
WHEREAS, City and Agency desire to enter into the Agreement to ensure that the
duties, functions, operations, activities, programs, and projects of the Agency continue
to be funded and implemented; and
WHEREAS, as of the date hereof, the California Supreme Court has exercised original
jurisdiction in California Redevelopment Association, et al., Petitioners v. Ana
Matosantos, et al., Respondents, Case No. S194861, a lawsuit challenging the
constitutionality and validity of AB 1 X 26 and AB 1 X 27, the Court issued a partial stay
on the enforcement of AB 1X 26 and AB 1X 27, and the Court has indicated its intent to
issue a ruling in the case in January 2012, and thus the implementation of the
Agreement is subject to the condition subsequent of the Court's ruling, and potentially
rulings by other courts, as set forth.in Sections 6 and 17 of the Agreement;
RESOLUTION NO. 4400
PAGE 3
NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows:
Section 1. The foregoing Recitals are incorporated herein and made a part hereof.
Section 2. The Cooperation and Funding Agreement for Payment or Reimbursement
of Administrative Expenses in the form presented concurrently with this Resolution, on
file with the City Clerk, is hereby approved. The Mayor is authorized and directed to
sign the Remittance Agreement on behalf of the City.
Section 3. The City Manager and his authorized designees are authorized and
directed to take such other and further actions, and to sign such other and further
documents and instruments, as may be necessary to implement and effect this
Resolution and the Agreement on behalf of the City.
Section 4. The City Clerk shall certify to the adoption of this Resolution.
On motion of Council Member Costello, seconded by Council Member Ray, and on the
following roll call vote, to wit:
AYES: Council Members Costello, Ray, Brown, and Mayor Ferrara
NOES: None -
ABSENT: Council Member Guthrie
the foregoing Resolution was passed and adopted this 27th day of September, 2011.
RESOLUTION NO. �Oo
PAGE 4
TONY RRA , AYOR
ATTEST:
KELLY W TM E, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
ZZ,
TIM THY J. C R. •IL, CITY ATTORNEY
- l
Name of Redevelopment Agency:Arroyo Grande Redevelopment Agency
Project Area(s) Arroyo Grande Redevelopment Project Area
PRELIMINARY DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE
Per AB 26-Section 34167 and 34169(')
Total
Outstanding Total Due
Debtor During Fiscal
Project Name/Debt Obligation Payee Description Obligation •Year Jan Feb Mar Apr May Jun Total Source of Payment
7 2007 Tax Allocation Bonds Wells Fargo Repay existing debt and fund new development S 7.757.385 S 290,580 S S - S 110.799 S $ $ $ 110,799 Redevelopment Propeny Property Tax Trust Fund
2 2007 Tax Allocation Bonds Wells Fargo Repay exisfinq debt and fund new development 4.363,529 163.452 1 62.325 62.325 Low and Moderate Income Housino Fund
3 City loan entered into an 7.25-06 City of Arroyo Grande Loan for purchase of land for future hotel development 919,797 919,797 919,797 919,797 Redevelopment Property Tax Trust Fund
4 Lease of Parking Lot Mr 8 Mrs Gutierrez Parking lot lease 240,000 24,000 2.000 2,000 2,000 2.000 2.000 2,0D0 12,000 Redevelopment Property Tax Trust Fund
5 Lease of Parldnq Lot Mr Jacobson Parldrig lot lease 46,800 4,680 390 390 1 390 390 390 390 2,340 Redevelopment Property Tax Trust Fund
6 Employee costs Employees of Agency Payroll for employees 241,881 263,800 21,983 21,983 21,983 21,983 21,983 21,983 131,896 Redevelopment Property Tax Trust Fund
7 Employee costs Employees of Agency Payroll for employees 48,615 54,160 4,513 4,513 4,513 4,513 4,513 4 513 27 078 Low and Moderate Income Housing Fund
8 Contract for le al services Rutan 8 Tucker Legal services 15 000 15,000 1,500 1,000 2,500 Redevelopment Property Tax Trust Fund
9 Contract for le al services Rulan 8 Tucker Legal services 10,000 10.000 1,000 1,000 2,000 Low and Moderate Income Housing Fund
10 Cost Allocation costs City of Arroyo Grande Costs for services provided by City staff 66,367 72,400 6,033 6,033 6,033 6,033 6,033 6,037 36,202 1 Redevelopment Property Tax Trust Fund
11 Cost Allocation costs City of Arroyo Grande Costs for services provided by City staff 15,308 16,700 1,392 1,392 1,392 1,392 1,392 1,388 8,348 Low and Moderate Income Housing Fund
12 Purchase of land Pao les Self Help Affordable housing project 892,877 892.677 0 Reserve Balances
13 Police Station BFGC Architects Design of new Police Station 160,000 160,000 1 50,000 50,000 Reserve Balances
14 Contract for construction Brou h Construction Rehab of El Camino Real Street 50,000 50,000 0 Reserve Balances
15 Redevelopment Audit Moss,Levy.and Hartzheim CPA's Auditnq services
2,800 2,800 0 Redevelopment Property Tax Trust Fund
16 Contract for Consulting services Tierra West Advisors Consulting services 15,000 15,000 2,000 2,000 2,000 2,000 1,000 1,000 10,000 Redevelopment Property Tax Trust Fund
17 Contract for consulting services Tierra West Advisors Consulting services 10 000 10,000 -2,000 2,000 2,000 1,000 500 7,500 Low and Moderate Income Housing Fund
18 Agency insurance costs CJPIA General Liability Insurance 17,102 17,102 1,425 1,425 1,425 1,425 1.425 1,425 8,550 1 Redevelopment Property Tax Trust Fund
19 Agency utility costs City of Arroyo Grande Utilities,Telephone.postage 10.598 1 10,598 833 833 833 833 633 833 4.998 1 Redevelopment Property Tax Trust Fund
20 Affordable housing project County of San Luis Obispo Funding for development of an affordable housing roject 50.000 50,000 1 0 Reserve Balances
21 ABX7 27 State of California Voluntany alternative Redevelopment program ARP 200,990 200,990 100.495 1 100,495 200,990 Other Revenue Sources
22 ABX7 27 State of California Voluntarty alternative Redevelopment program ARP 275,000 275,000 137.500 137,500 275,000 Low and Moderate Income Housing Fund
23
24
25
26
27
28
29
30
Totals-This Page S 15 409,049 $3,518,936 $283,084 J 44,569 $ 215,693 S 41,569 S 278,064 S 1,W9,366 S 1,872,325
Totals-Other Obligations 516,249,470 $ 342,342 S - S S 171,173 S 5 S 171.173
Grand total-All Pages $31.6 58,519 S 3,861.278 S 283,064 S 44,569 S 215,693 S 212,742 5 278,064 S 1.009.366 1$2.04
(1)The figures in this document are estimates only. The actual payment obligations may be higher or lower.
(2)Payments shown for June 2012(e.g.,by June 30,2012)may be made at any time from January 1,2012 through June 30,2012.
D
D
n
9
M
z
Name of Redevelopmer Arroyo Grande Redevelopment Agency
Project Area(s) Arroyo Grande Redevelopment Project Area
OTHER OBLIGATION PAYMENT SCHEDULE
Per AB 26-Section 34167 and 34169(')
Total
Outstanding Total Due
Project Name/Debt Debt or During Fiscal
Obligation 'Payee Description Obligation Year Jan Feb Mar Apr May Jun Total Source of Payment
1 Statutory Payments General Fund Payments per CRL 33607.5 $ 4,567,151 $ 94,194 $ 47,097 $ 47,097 Redevelopment Property Tax Trust fund
2 Statutory Payments Air Pollution Control Payments per CRL 33607.5 15,421 302 151 151 Redevelopment Property Tax Trust fund
3 Statutory Payments County Library Payments per CRL 33607.5 298,194 5,858 2,929 2,929 Redevelopment Property Tax Trust fund
4 Statutory Payments City of Arroyo Grande Payments per CRL 33607.5 3,231,119 52,802 26,401 26,401 Redevelopment Property Tax Trust fund
5 Statutory Payments Port San Luis Harbor Payments per CRL 33607.5 245,323 4,820 2,410 2,410 Redevelopment Property Tax Trust fund
6 Statutory Payments SLO Co.Flood Zone 3 Payments per CRL 33607.5 58,072 1,140 1 1 570 570 Redevelopment Property Tax Trust fund
7 Statutory Payments Nacimienlo Water Payments per CRL 33607.5 47,119 924 462 462 Redevelopment Property Tax Trust fund
8 Statutory Payments Flood Control Zone 3 Payments per CRL 33607.5 54,156 1,065 533 533 Redevelopment Property Tax Trust fund
9 Statutory Payments Arroyo Grande Cemetery Payments per CRL 33607.5 27,536 542 271 271 Redevelopment Property Tax Trust fund
10 Statutory Payments Lucia Mar Unified Payments per CRL 33607.5 2,607,195 47,983 23,992 23,992 Redevelopment Property Tax Trust fund
11 Statutory Payments Lucia Mar Unified Payments per CRL 33607.5 3,414,087 62,832 31,416 31,416 Redevelopment Property Tax Trust fund
12 Statutory Payments Cuesta College Payments per CRL 33607.5 502,273 9,244 4,622 4,622 Redevelopment Property Tax Trust fund
13 Statutory Payments Cuesta College Payments per CRL 33607.5 555,205 10,218 5,109 5,109 Redevelopment Property Tax Trust fund
14 Statutory Payments Co.School Service Payments per CRL 33607.5 119,083 2,191 1,096 1,096 Redevelopment Property Tax Trust fund
15 Statutory Payments Co.School Service Payments per CRL 33607.5 507,536 48,227 24,114 24,114 Redevelopment Property Tax Trust fund
16
17
18
19
20
21
22
23
24
25
26
27
28
Totals-Other Obligations 1$ 16,249 470 $ 342,342 $• $- $- $171 173 $- $- $ 171,173
(1)The figures in this document are estimates only. The actual payment obligations may be higher or lower.
(2) Payments shown for June 2012(e.g., by June 30, 2012)may be made at any time from January 1, 2012 through June 30, 2012.
OFFICIAL CERTIFICATION
I, KELLY WETMORE,--qty Clerk of the City of Arroyo Grande, County of San-_
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
Resolution No. 4400 is a true, full, and correct copy of said Resolution passed
and adopted at a regular meeting of the City Council/Redevelopment Agency of
the City of Arroyo Grande on the 27th day of September 2011.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 29th
day of September 2011
KELLY WET RE, CITY CLERK