RDA RES 2003-014 RESOLUTION NO. RDA 2003-14
A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY
MAKING FINDINGS IN CONNECTION WITH THE FISCAL YEAR 2003-04
EDUCATIONAL REVENUE AUGMENTATION FUND PAYMENT AND AUTHORIZING A
CONSOLIDATED LOAN AGREEMENT WITH THE CITY OF RANCHO PALOS VERDES
IN CONNECTION WITH THE AGENCY'S PROJECT AREA NO. 1.
RECITALS
A. In furtherance of the objectives of the Community Redevelopment Law (California
Health and Safety Code Section 33000, et seq.) (the "Law"), the Rancho Palos
Verdes Redevelopment Agency (the "Agency") has undertaken a program for the
redevelopment of blighted areas in the City of Rancho Palos Verdes (the "City"), and
toward this end, has undertaken and is now carrying out the responsibility for the
redevelopment of Project Area No. 1 (the "Project Area") pursuant to and in
furtherance of the Redevelopment Plan for the Project Area (the "Redevelopment
Plan").
B. In compliance with all requirements of the Redevelopment Law, the Agency and the
City Council adopted the Redevelopment Plan, which provides for the
redevelopment of the Project Area by undertaking such actions as may be
appropriate to abate the geologic hazards, install a sewer system, and facilitate other
improvements in the Project Area.
C. Prior to execution of this Agreement, the City previously advanced to the Agency's
Portuguese Bend Fund $4,320,552, plus accumulated interest of$4,962,273 as of
November 30, 2003, for a total outstanding balance of $9,282,825 as of November
30, 2003.
D. Prior to execution of this Agreement, the City previously advanced to the Agency's
Abalone Cove Fund $1,597,355, plus accumulated interest of$834,674 as of
November 30, 2003, for a total outstanding balance of$2,432,029 as of November
30, 2003, which outstanding balance includes the required ERAF payment for Fiscal
Year 2002-03 and administrative and over-head expenses for Fiscal Year 2002-03.
E. During Fiscal year 2003-04, the Redevelopment Law requires redevelopment
agencies to pay certain amounts to the county auditor for deposit in the ERAF for the
benefit of public schools, with the payment due to the county auditor by May 10,
2004. Redevelopment agencies may be required to make similar ERAF payments in
future Fiscal years.
F. During Fiscal year 2003-04, if a redevelopment agency determines that is unable to
make the required ERAF payment, the agency may allocate to the county auditor
less than the full required ERAF payment if the agency and city enter into an
agreement providing for the city to fund the difference between the amount allocated
by the agency and the full amount of the required ERAF payment. In the event that
agencies are required to make an ERAF payment in subsequent fiscal years, the
Redevelopment Law may provide similar provisions allowing cities to make the
ERAF payments on behalf of agencies.
G. In carrying out the Redevelopment Plan for the Project Area, the Agency is utilizing
the staff and other resources of the City. The City Manager of the City serves as
Executive Director of the Agency and the staff of the planning and community
development department and staff of the engineering and public works department
devote substantial time in connection with redevelopment of the Project Area.
H. By providing and making available to the Agency the staff and other resources of the
City, and by providing and making available to the Agency office space, equipment,
supplies, insurance, and other City services and facilities, the City has advanced and
will continue to advance the cost of the foregoing to the Agency.
I. The City and the Agency desire to enter into an agreement to acknowledge the
foregoing recitals, to provide for the City to advance funds to the Auditor of the
County of Los Angeles (the "County Auditor") for ERAF payments, to provide for the
City to advance administrative and overhead costs for redevelopment purposes and
to provide for an appropriate method of repayment by the Agency for such advances
together with funds previously advanced by the City for redevelopment purposes.
NOW, THEREFORE, THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS:
Section 1. The foregoing recitals are true and correct.
Section 2. The State Director of Finance has notified the Agency and the City
Council that the Agency's required ERAF payment for Fiscal year 2003-04 (the "2003-04
ERAF Payment") is $ 32,878.00.
Section 3. Set forth on Exhibit A, attached hereto and incorporated herein, are each
existing indebtedness of the Agency incurred prior to September 1, 2003, the payment of
which is to be made in whole or in part, directly or indirectly, out of the taxes allocated to the
Agency pursuant to Health and Safety Code Section 33670 on which a payment is required
to be made during the 2003-04 fiscal year, the amount of each such payment, and the time
when it is required to be made during the 2003-04 fiscal year.
Section 4. The chief fiscal officer of the Agency has reviewed the information set
forth in Exhibit A and has determined that the information set forth therein is accurate in all
respects.
Section 5. Based upon the information set forth in Exhibit A, the Agency hereby
finds that it will be unable to make the 2003-04 ERAF Payment to the County Auditor in that
this amount is necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the Agency during fiscal year 2003-04
and are or will be used by the Agency for that purpose and the Agency has no other funds
that can be used to pay this existing indebtedness and no other feasible method to reduce
or avoid this indebtedness.
Resolution No. RDA 2003-14
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Section 6. The Agency and City Council have held a duly noticed joint public
hearing regarding this Resolution and the 2003-04 ERAF Payment.
Section 7. The Agency desires to enter into the Consolidated Loan Agreement by
and between the Agency and the City, attached hereto as Exhibit B, to provide for the City
to advance funds to the County Auditor for ERAF payments, including the 2003-04 ERAF
Payment, to provide for the City to advance administrative and overhead costs for
redevelopment purposes and to provide for an appropriate method of repayment by the
Agency for such advances together with funds previously advanced by the City for
redevelopment purposes.
Section 8. The Consolidated Loan Agreement attached hereto as Exhibit B is
hereby approved and the Chairman is hereby authorized and directed, for and in the name
and on behalf of the Agency, to execute the Consolidated Loan Agreement and to deliver it
to the City of Rancho Palos Verdes in substantially the form hereby approved, with such
changes therein as the Chairman may approve, such approval to be conclusively evidenced
by his execution and delivery thereof.
Section 9. The members of the Agency and its officers, employees and counsel are
hereby authorized to do all acts and things, which may be required of them by this
Resolution. All such acts and things heretofore done are hereby approved, ratified and
confirmed.
PASSED, APPROVED AND ADOPTED t ' 2n' day if December 2003.
lir/ /
A /
• -
Agency Chair
Attest:
9_,___
0 LIL,. I'LL-/ /°f
Agency Secretary
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, JO PURCELL, Agency Secretary of the Rancho Palos Verdes
Redevelopment Agency hereby certify that the above Resolution No. RDA 2003-14 was
duly and regularly passed and adopted by the said Redevelopment Agency at a regular
meeting thereof held on December 2, 2003.
411 . ii#44t.e. / /,
Agency Secretary
Resolution No. RDA 2003-14
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EXHIBIT A
Set forth below are each existing indebtedness of the Agency incurred
prior to September 1, 2003, the payment of which is to be made in whole
or in part, directly or indirectly, out of the taxes allocated to the Agency
pursuant to Health and Safety Code Section 33670 on which a payment is
required to be made during the 2003-04 fiscal year. The amount of each
such payment is expressed as a dollar amount or as a percentage of tax
increment revenues generated in Project Area.
The Agency, the County and the City entered into a Memorandum of
Understanding, dated as of November 1997 (the "MOU").
Pursuant to the MOU, at the time of each allocation of property tax
revenues, the County Auditor-Controller shall pay to the Agency the
amount required to be set aside in the Agency's low and moderate income
housing fund pursuant to Health and Safety Code Section 33334.2, which
is 20 percent of the gross tax increment generated in the Project Area.
Pursuant to the MOU, after making the disbursement described above, the
County shall pay to the Consolidated Fire Protection District of Los
Angeles County all the amount payable to the District under Section 8(B)
of the Reimbursement and Settlement Agreement, dated October 13,
1987 among the County, the Agency and the City (the "Settlement
Agreement"). Pursuant to Section 8(B) of the Settlement Agreement, this
amount is 17 % of the gross tax increment generated in the Project Area.
Pursuant to the MOU, the County shall next pay all amounts required to
be paid with respect to the tax allocation bond issued by the Agency on
December 2, 1997, to the order of the County, in the original principal
amount of$5,455,000, all of which remains outstanding (the "RDA Bond").
The RDA Bond is secured by, and payable from tax increment revenues
allocated to the Agency, net of tax increment revenues required to be set
aside in the Agency's low and moderate income housing fund and net of
tax increment revenues paid to the Fire Protection District, as described
above (the "Net Tax Increment"). The principal of the RDA Bond shall
mature in installments on each December 2, commencing December 2,
2004. Interest shall accrue with respect to the unpaid principal of the RDA
Bond at the rate of 5% per annum and shall be payable in arrears on each
June 2 and December 2, commencing June 2, 1998. Set forth below, are
the debt service payments on the RDA Bond for fiscal year 2003-04:
Resolution No. RDA 2003-14
Exhibit A
Page 1 of 2
Amount of Each Date Required to be Total of All Payments
Payment Paid
$136,375 12/02/03
$136,375 06/02/04 $272,750
Pursuant to the MOU, on December 3rd of each year, after the payment of
all principal of and interest on the RDA Bond theretofore becoming due
and payable, the County shall retain for its own account all remaining Net
Tax Increment until the County shall have received an aggregate amount
of $3,111,400, without interest. Such amount represents unpaid interest
on the $10,000,000 aggregate principal amount of the County's C 26541-
M, 1915 Act Limited Obligation Improvement Bonds (Abalone Cove) (the
"County Bond"), the proceeds of which were paid to the Agency to finance
landslide mitigation measures in accordance with the Settlement
Agreement. The MOU provided for the cancellation of the County Bond.
As of the date of this Resolution, $450,994 of the $3,111,400 has been
repaid to the County.
The MOU provides for tax increment revenues to be paid to the Agency,
after the above payments have been made. However, during fiscal year
2003-04 no funds will be available for disbursement to the Agency.
Resolution No. RDA 2003-14
Exhibit A
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