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2011-09-06 Special CIC PacketCITY OF ALAMEDA •CALIFORNIA SPECIAL MEETING OF THE COMMUNITY IMPROVEMENT COMMISSION (CIC) TUESDAY SEPTEMBER 6, 2011 7:02 P.M. Location: City Council Chambers, City Hall, corner of Santa Clara Ave and Oak Street Public Participation Anyone wishing to address the Commission on agenda items or business introduced by the Commission may speak for a maximum of 3 minutes per agenda item when the subject is before the Commission. Please file a speaker's slip with the Assistant City Clerk if you wish to speak. 1. ROLL CALL CIC 2. ORAL COMMUNICATIONS, NON AGENDA (Public Comment) A limited number of speakers may address the Commission in regard to any matter over which the Commission has jurisdiction or of which it may take cognizance that is not on the agenda 3. CONSENT CALENDAR Consent Calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for removal for discussion or explanation is received from the Commission or a member of the public 3 -A. Adopt a Resolution of the Community Improvement Commission of the City of Alameda Adopting an Enforceable Obligation Payment Schedule Pursuant to Section 34169(g)(1) of the California Health and Safety Code. (Community Development) 4. ADJOURNMENT CIC Marie L. Gilmore Chair CITY OF ALAI° EDA Memorandum To: Honorable chair and Members of the community Improvement Commission From: John A. Russo Executive Director Date: September 6, 2011 Re: Adopt a Resolution of the Community Improvement Commission of the City of Alameda Adopting an Enforceable Obligation Payment Schedule Pursuant to Section 34169(g)(1) of the California Health and Saf Code 99 �N 4 On July 9, 2011, as part of adopting the State of California Fiscal Year (FY) 201 1 -12 budget, the Governor signed two trailer bills, AB X1 26 and AB X1 27, into law. The legislation was effective on June 29, 2011. AB X1 26 eliminates redevelopment agencies as of October 1, 2011. AB X1 27 provided an opportunity for redevelopment agencies to "opt in" and continue to operate and function if the sponsoring jurisdiction (the city of Alameda) adopts an ordinance by October 1, 2011. The City of Alameda adopted an ABX1 27 Opt -In ordinance on July 19, 2011. On August 11, 2011, the California Supreme court issued an order in CRA v. Matosantos which stays parts of ABX1 26 and almost all of ABX1 27. The provisions of ABX1 26 that remain in effect after the court's order require the Community Improvement Commission (CIC) to preserve its assets and prevents the CIC from entering into new contracts or taking on new obligations. The still active provisions of ABX1 26 allow and require agencies to continue to meet their existing obligations and make any payments necessary for ongoing agency administration. The only portion of ABX1 27 that remains in effect is Health Safety code Sec. 34194(b )(2), which provides for the State Department of Finance (DOF) to determine the 201112 remittance payments owed by cities opting in to the Voluntary Alternative Redevelopment Program, allows the cities to appeal those determinations. by August 15, 2011, and directs the DOF to respond to those appeals by September 15, 2011. DISCUSSION The court stay requires redevelopment agencies, even those that have opted in, to adopt an Enforceable obligation Payment Schedule (EOPS) before August 29, 2011, in order to continue to expend funds on permitted activities between September 1, 2011, and December 31, 2011. The EOPS will allow continuation of permitted activities including making scheduled payment ori IC h Honorable Mayor and September 6, 2011 Members of the Community Improvement Commission Page 2 of 3 enforceable obligations, which include existing bonds, loans, legally binding and enforceable agreements or contracts, and contracts for administration or operation of the agency. The FOPS includes every payment_ the Community Improvement Corr rr ission of the City of Alameda (CIC) will be malting through December 31, 2011, and describes (1) the project name associated with each agency obligation; (2) the name of the. payee; (3) the nature of the work, product, service, facility, or other thing of value. for which the payment is to be made; (4) the amount of the payment. Per Section 34169 (g )(2), the adopted EOPS must be posted on the City's website, transmitted to the local Count Auditor Controller, the State Controller, and the DOF. In order to meet the August 29 t� deadline, on August 26, 2011, the CIC Executive Director adopted the EOPS and reported that the CIC would be considering adoption of the EOPS at a .special meeting on September 6, 2011. It is recommended that the CIC adopt a resolution adopting the EOPS. FINANCIAL IMPACT Staff has identified approximately $1,404,040,314 of debt or obligation across the three redevelopment areas, including approximately $27 million in the current fiscal year. These payments will be made from tax increment bond proceeds from annual tax increment cash flow as it is available and budgeted. ENVIRONMENTAL REVIEW Pursuant to Title 14 of the California Code of Regulations, Section 10378(b )(4), adopting an Enforceable obligation Payment Schedule is exempt from the requirements of the California Environmental Quality Act (CEQA). The proposed schedule is not a "project," but instead consists of the creation and continuation of a. governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program that may result in a potentially significant environmental impact. RECOMMENDATION Adopt a Resolution of the Community Improvement Commission of the City of Alameda adopting an Enforceable Obligation Payment Schedule pursuant to Section 34169(g)(1) of the California Health and Safety Code. Honorable Mayor and September 6, 2011 Members of the Community Improvement Commission Page 3 of 3 Respectfully submitted, Lori Taylor Community Development Director Approved as to funds and account, Fred Marsh Controller COMMUNITY IMPROVEMENT COMMISSION RESOLUTION No. ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO SECTION 34169(g) OF THE CALIFORNIA HEALTH AND SAFETY CODE WHEREAS, the Community Improvement Commission of the city of Alameda "Commission is a redevelopment agency organized and existing under the California Community Redevelopment Law (Health Safety Code 33000 et seq.) CRL and has been authorized to transact bus.i.ness and exercise the powers of a redevelopment agency pursuant to action of the city Council of the City of Alameda "City council" or "city," as applicable and WHEREAS, pursuant to the CRL, the city council approved and adopted the Redevelopment Plans "Redevelopment Plans for the Alameda Point Improvement Redevelopment Project on March 3, 1998, by Ordinance No. 2754 as amended to date;. Business Waterfront. Improvement Redevelopment. Project on June 18, 1 991, by ordinance No. 2559, as amended to date; west End Community Improvement Redevelopment Project on July 5, 1983 by Ordinance No. 2141, as amended to cute, (the "Projects and the commission is .vested with the responsibility for implementing and carrying out the Redevelopment Plans; and WHEREAS, the commission is currently in the process of carrying out the goals and objectives of the Redevelopment Plans by continuing to: eliminate blight; increase, improve and preserve the supply of affordable housing in the community; stimulate and expand economic growth and employment opportunities by revitalizing properties and businesses within the Projects; and alleviate deficiencies in public infrastructure; and WHEREAS, in connection with approval and adoption of State.Budget for Fiscal Year 2011-12, the California Legislature has approved, and the Governor has signed (i) ABX1 26 Stats. 2011, chap. 5, "ABX1. 26 which immediately, and purportedly retroactively, suspends all. otherwise legal redevelopment activities and incurrence of indebtedness. and dissolves redevelopment agencies effective October 1 2011, and requires redevelopment agencies to adopt a payment schedule for all agency enforceable obligations in conformance with Section 34169(g) of the health and Safety Code by August 28 2011 and submit such schedule to the county auditor controller, the State Controller and the State Department of Finance (the "Dissolution Act and (ii) ABX1 27 Stats. 2011, chap. 6, "ABX1 27 which allows. communities to avoid the consequences of the Dissolution Act and continue their redevelopment agency if the community enacts an ordinance agreeing to comply with the Resolution #3 -A C1C 09 -00 -11 alternative voluntary redevelopment program described in Section 2 of ABX1 .27 adding Part 1 .9 (commencing with section 34192) of Division 24 of the Health and Safety Code (the "Alternative Redevelopment Program and WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the State of California on Ju 18, 2011 (Califomia. Redevelopment Association, el al. v. Agra Matosantos, el al., Case Flo. 61 94861), challenging the constitutionality of ABX1 26 and ABX1 27 on behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement; and WHEREAS, on August 1 1 2011, the Supreme Court issued a .partial .sta y on the effectiveness of ABX1 26 and ABX1 27 until the .Court can rule on the constitutionality of the two bills, which stay was further modified. by the Court on August 17, 2011 (collectively, the "Stay and WHEREAS, the Stay is unclear as to ghat actions an agency or. city should be .taking during pendency of the Stay, therefore, not rithstand i n g the pending litigation and the Stay, Agency wishes .to adopt. this resolution, in .the event ABX1 26 and ABX1 27 are upheld and the Stay is lifted; and WHEREAS, the Commission has prepared the. Enforceable. obligation Payment Schedule, attached hereto as Exhibit A, the Executive Director of the Commission approved such schedule on August 26 2011, and. such schedule has been posted on the City's website in accordance with Section 34 1 69 2 of �g�� the Health and Safety Code. NOW, THEREFORE, THE CO -MMUN ITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA DOES RESOLVE AS FOLLOWS: Section 1. The Commission hereby adopts the Enforceable obligation Payment Schedule, attached hereto as Exhibit A. Section 2. The Commission Secretary is hereby directed to transmit a copy of the Enforceable obligation Payment Schedule to the State Department of Finance, the State Controller and the Alameda County Auditor Controller in accordance with Section 34169(g)(2) of the Health and. Safety Code. .C» X W 0) Cal cu a.. 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CL Q0 co Q� n- (0 '0 i wc: (D (D E E CD 4) E E a) (D E E 03 0 E E a) a) E E M d) E E W E 0 m 0 :5 LL 0 2� E (r C) 0 iv I CL r= M E m f- co co m co m ti I'- C.0 m m U, 0) �3 2 2 "C -;C cp a D :3 2 2 -C cl a 2 2 m im o- CL 5, cu cu d� a. cc ED a. o- cu cc o- C- m m CL a- ca CL o- a- 70 C m L C: C: 0 C) 2 z n 0 cr) m 0 c m m 0 0 cr) m 0 0 -a F- C 1-- _r_ 17- i!� Ll LN L' ?T L' 2:' L'� 0 0 c fn C.71 Q) w -0 43.7 2 Ir_- U tp 14-- u v 0 ITZ- 0 0 c c o w w u 3 M 'M :3 m W 0 CL 0 0 Q7 U C 0 b9 0 a- U) (1 U)-1 U I U I U 0 a- 0- IL IL m w U) (0 Cl) U) 0 U) 2: CO N C14 m ll Sr LQ (�o r• ico m C'4 n V, U') (0 r- CO M C> 04 N N N LO N 04 C'j LO I- N 04 1, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Community Improvement Commission of the city of Alameda in a Special Community Improvement Commission meeting assembled on the 6th day of September, 2011, by the followin g vote to grit: AYES: NOES: ABSENT: ABSTENTIONS: IN WITNESS, WH EREOF, I have hereunto set my hand and affixed the official seal of said Commission this day of September, 2011. Lara Weisiger, Secretary Community Improvement Commission Marie Gilmore, chair Community Improvement Commission