RDA RES 1997-018 RESOLUTION NO. RDA 97-18
A RESOLUTION OF THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY APPROVING A MEMORANDUM
I/ OF UNDERSTANDING BETWEEN THE CITY OF RANCHO
PALOS VERDES, THE COUNTY OF LOS ANGELES AND
THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY
AND DECLARING THAT THE MEMORANDUM OF
UNDERSTANDING IS EXEMPT FROM THE PROVISIONS
OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, in 1987, the City of Rancho Palos Verdes
("City") , the County of Los Angeles ("County") and the Rancho
Palos Verdes Redevelopment Agency ("Agency") entered into a
settlement to resolve certain litigation that was pending between
the parties; the settlement was memorialized in a document
entitled "Reimbursement and Settlement Agreement" ("Agreement") ;
and
WHEREAS, pursuant to the Agreement, in 1990 the County
formed an Assessment District (CI 2651-M) ("District") in the
City, which District includes property within the Agency's
Project Area No. 1 ("Project Area") ; levied assessments in the
amount of $10 million which are secured by liens on the parcels
within the District; issued and purchased assessment bonds in the
principal amount of $10,000, 000 representing the assessments;
turned the bond proceeds over to the Agency to use to pay for
projects to abate the Abalone Cove landslide; and
WHEREAS, pursuant to the Agreement, the assessment
payments were deferred for ten years after the bonds were sold
(i.e. , until 2001) ; it was anticipated that, based on increases
in assessed valuation of the property within the Project Area,
the tax increment generated in the Project Area would be
sufficient to pay the assessments and the property owners in the
District would not be required to pay the assessments after the
end of the ten-year deferral period; however, due to the
statewide recession, the anticipated increase in the assessed
valuation did not occur; and
WHEREAS, the parties to the Agreement agree that the
County assessment bonds should be restructured in the manner
described in the Memorandum of Understanding, which is attached
as Exhibit "A" hereto and incorporated herein by this reference,
so that the property owners in the District will not be required
to commence paying the assessments in 2001;
971016 R6876-00001 cwl 0692034.001
NOW, THEREFORE, THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY DOES HEREBY FIND, ORDER AND RESOLVE AS FOLLOWS:
Section 1. Pursuant to the provisions of the
California Environmental Quality Act ("CEQA") and the State CEQA
Guidelines, certain activities by governmental entities are
exempt from the provisions of CEQA. One exemption set forth in
the State CEQA Guidelines is "the creation of government funding
I/
mechanisms or other governmental fiscal activities which do not
involve any commitment to any specific project which may result
in a potentially significant physical impact on the environment. "
(Section 15378 (b) (5) of the State CEQA Guidelines. )
The Rancho Palos Verdes Redevelopment Agency finds that
approval of the attached Memorandum of Understanding, which
allows for the restructuring of the County assessment bonds in
the manner set forth therein, is within the exemption set forth
in Section 15378 (b) (5) of the State CEQA Guidelines because the
financing arrangements implemented by the Memorandum of
Understanding simply replace the financing arrangements which
were approved in 1987 pursuant to the Agreement.
Furthermore, the County prepared and certified an
environmental impact report ("EIR") in 1989, prior to the
formation of the District. That EIR fully analyzed all of the
potential environmental impacts arising from the formation of the
District and the landslide abatement improvements that were to be
performed by the Agency and funded with the proceeds of the
County assessment bonds. The approval of the Memorandum of
Understanding does not alter or affect any of the analysis set
forth in that EIR because the financing arrangements set forth in
the Memorandum of Understanding merely replace the financing
arrangements which were agreed to previously. In addition, the
Memorandum of Understanding neither expands upon nor changes the
landslide abatement improvements that were to be funded with the
proceeds of the County assessment bonds, which improvements were
fully analyzed in the EIR that was prepared on behalf of the
County. Finally, the Memorandum of Understanding does not commit
the Agency to perform any particular project(s) with any of the
funds that are available to the Agency as a result of the
approval of the Agreement.
For all of the foregoing reasons, the Rancho Palos
Verdes Redevelopment Agency hereby finds that the approval of the
Memorandum of Understanding is not a project which is subject to
CEQA and is within the exemption set forth in Section 15378
(b) (5) of the State CEQA Guidelines.
I/
Section 2 . The Rancho Palos Verdes Redevelopment
Agency further finds that the approval of the Memorandum of
Understanding will benefit owners of property within the Project
Area, which is a significant segment of the City, because such
property owners will no longer be required to commence paying the
RESOL. NO. RDA 97-18
- 2 -
assessments in 2001. The payment of the assessments could cause
severe economic hardship to property owners within the District.
Accordingly, the Agency hereby approves the attached Memorandum
of Understanding and authorizes the Chairman to execute the
Memorandum of Understanding on behalf of the Agency in
substantially the form hereby approved, with such changes therein
as the Chairman may approve, such approval to be conclusively
evidenced by the Chairman's execution and delivery thereof.
Section 3. The Rancho Palos Verdes Redevelopment
Agency directs Agency staff to take whatever actions are
necessary to implement the Memorandum of Understanding including,
without limitation, recording a Notice of Exemption with the
County of Los Angeles and the preparation of any documents which
are found to be necessary to implement the Memorandum of
Understanding.
PASSED, APPROVED and ADOPTED this 21st day of
October, 1997.
V"' •
Id/MA
CHAI WM,
ATTEST:
ge
AGENCY SECRETARY
S ATE 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 97-18 was duly and regularly passed and adopted by the
said Redevelopment Agency at a regular meeting thereof held on
October 21, 1997.
f
1 _AGE CY ECRETARY
RESOL. NO. RDA 97-18
- 3
MEMORANDUM OF UNDERSTANDING,
This Memorandum of Understanding ("MOU") is dated for reference purposes as
of November 1, 1997, by and among the COUNTY OF LOS ANGELES (the "County),
the CITY OF RANCHO PALOS VERDES (the "City"), and the RANCHO PALOS
VERDES REDEVELOPMENT AGENCY (the "RDA").
Section 1. Background and Purpose.
(A) The County has heretofore undertaken proceedings under the Municipal
Improvement Act of 1913 (being Division 12 of the Streets and Highways Code), to
form County Improvement No. 2651-M (Abalone Cove), and to levy deferred benefit
assessments therein (the "Assessments"), in order to finance certain landslide
mitigation facilities within the Abalone Cove and Portuguese Bend areas of the City
(the "Improvements").
(B) Pursuant to the Improvement Bond Act of 1915 (being Division 10 of the
Streets and Highways Code), on July 26, 1991, the County issued $10,000,000
aggregate principal amount of its CI 2651-M, 1915 Act Limited Obligation Improvement
Bonds (Abalone Cove) (the "Bond"). The Bond bears interest at the rate of 7.7654%
per annum. The $10,000,000 proceeds of the Bond were paid to the RDA to finance
landslide mitigation measures in accordance with the Settlement Agreement (defined
below).
(C) The County, the City and the RDA desire to restructure the $10,000,000
debt, so that reliance on private property assessments is eliminated. This MOU
provides for cancellation of the Bond and elimination of the Assessments, and
elimination of the burden on the taxpayers represented by the Assessments and the
Bond.
Section 2. Issuance of RDA Bona. On December 2, 1997 (the "Settlement
Date"), the RDA shall issue (or cause to be issued) to the order of the County a bond in
the aggregate principal amount of$5,455,000 (the "RDA Bond"). The RDA Bond may
be issued by the RDA or by a joint powers authority to which the RDA is a party,
provided the RDA Bond has the characteristics described in this Section 2.
The RDA Bond shall be directly or indirectly secured by, and payable from, all
incremental property tax revenues allocated and paid to the RDA pursuant to California
Health and Safety Code §33670(b) (the "Tax Increment"), net of tax revenues required
to be set aside for housing purposes pursuant to California Health and Safety Code
§33334.2, and tax revenues paid to the Consolidated Fire Protection District of Los
1 Exhibit "A"
Resol . No. RDA 97-18
Angeles Co unt y (the "Net Tax Increment"), on a first priority basis. The RDA shall not
issue any bonds, notes or evidences of indebtedness payable from the Net Tax
Increment, or otherwise suffer to exist or be created any charge upon the Net Tax
Increment, except expressly on a basis which is ressly subordinated to the payment of the
p
d and the interest thereon and payments made pursuant to Section 3(B),
RDA Bond P Y
below. Notwithstanding the foregoing, principal of and interest on the RDA Bond may
9 9 9 P
be paid from a n y lawfully lawful) available source of funds, at the option of the issuer thereof.
The rinci al amount of the RDA Bond shall mature in installments on each
p P
December 2, commencing commencin December 2, 2004, in accordance with the debt service
schedule attached hereto as Exhibit A. Interest will continue to accrue on any
t of principal which is not paid when due, as provided in the next paragraph.
installment p p p
Interest shall accrue with respect to the unpaid principal amount of the RDA
P .
the rate of five percent (5%) er annum, calculated on the basis of a 360-day
Bond at p per .
year comprised of twelve 30-day months, and shall be payable in arrears on each
Y P Y installment December 2, commencing June 2, 1998. In the event any installment of
June 2 and 9 ^�
interest is not paid when due, such amount shall remain due and payabl-:from the next
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available Net et Tax Increment or any other lawfully available funds of the issuer until paid
in full.
All a ments on the RDA Bond shall be applied first to accrued and unpaid
payments
interest and thereafter to principal.rinci al. The RDA Bond shall be a negotiable instrument
issued in fully registered form.
Concurrently with the issuance of the RDA Bond, the RDA shall deliver to the
County an Opinion of counsel (which may be counsel to the City or the RDA),
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addressed to the County and dated the Settlement Date, to the effect that the RDA
Bond is a legal, valid and binding obligation of the issuer thereof, enforceable in
9 9 9 . . .
accordance with its terms, subject only to such exceptions and qualifications as are
acceptable to the County in its sole discretion exercised reasonably.
Section 3. Additional Payments.
(A)
On the Settlement Date the RDA shall cause a cash payment to be made to
the County in the amount of$4,545,000.
On December 3 of each ear, after the payment of all principal of and
(B) year,
on the RDA Bond theretofore becoming due and payable, the County shall
retain for its own account P
(as provided in Section 6 below), all remaining Net Tax
ent until the County shall have received an aggregate amount of$3,111,400,
Increment y 99
without interest. Such amount represents unpaid interest on the Bond as of the
Settlement Date.
2 Exhibit "A"
Resol . No . RDA 97-18
Section 4. Cancellation of Bond and Elimination of Assessments. If the RDA
shall have performed all of its obligations under Section 2 and Section 3(A), then on the
Settlement Date the County shall cancel the Bond and thereafter take all necessary or
appropriate action to eliminate the Assessments and remove the lien thereof. Interest
on the Bond shall cease to accrue on the Settlement Date (or the date of issuance of
the RDA Bond, if different).
Section 5. Deferral of Pass-Through Amounts. To the extent necessary to pay
principal and/or interest on the RDA Bond and to satisfy the amount due to the County
pursuant to Section 3(B) above, the County shall defer its receipt of Tax Increment it
would otherwise receive pursuant to Section 8(C) of that certain Reimbursement and
Settlement Agreement dated October 13, 1987, among the County, the RDA and the
City (the "Settlement Agreement"). The deferral provided for in this section is in
addition to the deferrals provided for under Section 8(C) of the Settlement Agreement.
The RDA may request a deferral under this section or Section 8(C) of the Settlement
Agreement by delivering such request in writing to the County's Auditor-Controller.
Section 6. Intercept Procedures. At the time of each allocation of property tax
revenues,..the Auditor-Controller of the County (the "Auditor-Controller") shall segregate
all Tax Increment for deposit to a special account held by the Auditor-Controller(the
"Tax Increment Account"). The Auditor-Controller shall pay to the RDA from the Tax
Increment Account the amount required to be set aside for housing purposes pursuant
to California Health and Safety Code§33334.2, and shall thereafter set aside and
disburse from the Tax Increment Account and pay when due the following amounts in
the indicated order of priority: (i) all amounts payable to the Consolidated Fire
Protection District of Los Angeles County ("CFPD") under Section 8(B) of the
Settlement Agreement; (ii) all amounts required to be paid with respect to the RDA
Bond prior to the next December 3 (including pass-through amounts deferred for this
purpose under Section 5); (iii) all amounts permitted to be retained by the County under
Section 3(B) of this MOU (including pass-through amounts deferred for this purpose
under Section 5); (iv) to the RDA, all deferrals requested by the RDA of Tax Increment
which would otherwise be passed through to the County pursuant to Section 8(C) of the
Settlement Agreement; (v) all amounts payable to the County under Section 8(C) of the
Settlement Agreement (except to the extent the County has deferred receipt of Tax
Increment pursuant to the Settlement Agreement or Section 5 above); and (vi) Tax
Increment payable to the County under Section 8(C) of the Settlement Agreement, the
receipt of which was deferred pursuant to the Settlement Agreement or Section 5 of this
MOU. The Auditor-Controller shall set aside and disburse tax increment pursuant to
each clause in the preceding sentence only after the set-aside required under each
prior clause has been satisfied.
On each December 15, after the foregoing payments have been satisfied, the
Auditor-Controller shall transfer any balance remaining in the Tax Increment Account to
3 Exhibit "A"
Resol . No . RDA 97-18
After the payment ment in full of the RDA Bond and the
or upon the order of the RDA. Y
(
amount described in Section 3(B), and all deferred Tax Increment payable to the
County pursuant to Section 8(C)
of the Settlement Agreement, the County shall
disburse Tax Increment to
the RDA and the County and CFPD pursuant to the
Settlement Agreement) at the times and in the manner as is customary with other
redevelopment agencies in the County.
' es. Each party hereto agrees to take such actions,
Section 7. Further Assurances. p Y
and to
execute such certificates and other instruments, as may be necessary or
give effect to and carry out the provisions of this MOU.
appropriate to g �Y
Without limiting the foregoing,in the RDA and the City shall cooperate with the
County and furnish such financial or other information as may be reasonably requested
by County the Count to facilitate a sale by the County of the RDA Bond.
Clause. This MOU shall supersede any previous or
Section 8. Integration
written agreements or understandings between the parties
contemporaneous oral or g
hereto with respect to the subject matter hereof, and to the extent of any conflict or
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' control. Nothing in this MOU is intended, or shall be
inconsistency this MOU shall 9
construed, to amend supersede an
end or su ersede provision of the Settlement Agreement.
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Section 9. Assumption Y 9 of Liability Agreement. The Assumption of Liability
Agreement executed by th e
: County and the RDA and approved by the Board of
y
December 27, 1977 and the Assumption of Liability Agreement
Supervisors on D , .
ed by the County and the City and approved by the Board of Supervisors on
execut y y Y
N ovember 14 1977 are hereby expressly not applicable to this MOU.
The RDA agrees to defend, indemnify and hold
Section 10. Indemnity., 9 .
its officers, employees and agents, from and against any loss,
harmless the County, its .
claim, expense or liability, including attorney fees and costs, if any,
cost, damage, p Y�
arising out of, as a result
of, or in connection with any acts and/or omissions by the
officers, employees and a agents with respect to the financing, design,
RDA or its o 9 p
construction, operation and/or maintenance of any landslide abatement, mitigation
and/or monitoring measures for the Abalone Cove Landslide Area. As used herein, the
term "Abalone Cove Landsli de Area" means those areas within the boundaries of
County Improvement District No. 26 ,
51-M as said district existed on October 1, 1997.
Section 11. General Provisions,.
are for reference purposes only and shall not affect the
(A) Section headings p p
meaning or interpretation of this MOU. Unless the context clearly requires otherwise,
words of the m gender ender include correlative words of the feminine and neuter
genders, and words in the singular include the plural anc; vice-versa.
4 Exhibit "A"
Re s o l . No . RDA 97-18
(B) The terms of this MOU and the language thereof are the joint product of all
of the parties hereto and shall not be construed against any party in the event litigation
be brought respecting the meaning or enforcement of any term.
(C) This MOU is not intended to, and does not, create any rights in any person
other than the parties hereto.
(D) This MOU may be executed in counterparts. Each counterpart shall be
deemed an original and, when taken together with other signed counterparts, shall
constitute one MOU, which shall be binding and effective as to all parties.
(E) Any of the time deadlines specified in this MOU may be extended by mutual
written consent of the parties. The City and RDA, respectively, authorize the City
Manager and Chairman, and the County authorizes the Chief Administrative Officer, to
agree to any such time extensions on their behalf.
IN WITNESS WHEREOF, the County, the City and the RDA have caused this
MOU to be executed by their respective officers thereunto duly authorized as of the
date first above written.
COUNTY OF LOS ANGELES CITY OF RANCHO PALOS VERDES
By: , By: ,
Chairman, Board of Supervisors Mayor
APPROVED AS TO FORM: APPROVED AS TO FORM:
DE WITT W. CLINTON,
County Counsel By:
City Attorney
By:
Deputy
RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
By:
5 Exhibit "A"
Re s o l . No . RDA 97-18
EXHIBIT A
RD ' Bond - Debt e ice hed _le and -ctio 3 = •a i e is
RDA Bond Pav_ments
Date Principal, Interest Total Payment
06-2-98 $136,3751 $136,375
12-2-98 $136,375 $136,375
06-2-99 $136,375 $136,375
12-2-99 $136,375 $136,375
06-2-00 $136,375 $136,375
12-2-00 $136,375 $136,375
06-2-01 $136,375 $136,375
12-2-01 $136,375 $136,375
06-2-02 $136,375 $136,375
12-2-02 $13375 $136,375
06-2-03 $136,375 $136,375
12-2-03 $136,375 $136,375
06-2-04 $136,375 $136,375
12-2-04 $5,000 $136,375 $141,375
06-2-05 $136,250 $136,250
12-2-05 $15,000 $136,250 $,151,250
06-2-06 $135,875 $135,875
12-2-06 $25,000 $135,875 $160,875
06-2-07 $135,250 $135,250
12-2-07 $40,000 $135,250 $175,250
06-2-08 $134,250 $134,250
12-2-08 $55,000 $134,250 $189,250
06-2-09 $133,875 $133,875
12-2-09 $65,000 $133,875 $198,875
06-2-10 $131,250 $131,250
12-2-10 $85,000 $131,250 $216,250
06-2-11 $129,125 $129,125
12-2-11 $100,000 $129,125 $229,125
06-2-12 $126,625 $126,625
12-2-12 $120,000 $126,625 $246,625
06-2-13 $123,625 $123,625
'The first interest payment assumes issuance of the RDA Bond on the
Settlement Date. If the RDA Bond is not issued on the Settlement Date, the first
interest payment will be recalculated from the actual date of issue.
6 Exhibit "A"
Re s o l . No . RDA 97-18
12-2-13
$135,000 $123,625 $258,625
06-2-14 $120,250 $120,250
12-2-14 $155,000 $120,250 $275,250
06-2-15 $116,375 $116,375
12-2-15
$180,000 $116,375 $296,375
06-2-16 $111,875 $111,875
12-2-16 $200,000 $111,875 $311,875
06-2-17 $106,875 $106,875
12-2-17 $230,000 $106,875 $336,875
06-2-18 $101,125 $101,125
12-2-18 $255,000 $101,125 $356,125
06-2-19 $94,750 $94,750
12-2-19 $280,000 $94,750 $374,750
06-2-20 $87,750 $87,750
12-2-20 $310,000 $87,750 $397,750
06-2-21 $80,000 $80,000
12-2-21 $345,000 $80,000 $425,000
06-2-22 $71,375 $71,375
12-2-22 $380,000 $71,375 $451,375
06-2-23 $61,875 $61,875
12-2-23 $415,000 $61,875 $476,875
06-2-24 $51,500 $51,500
12-2-24 $450,000 $51,500 $501,500
06-2-25 $40,250 $40,250
12-2-25 $495,000 $40,250 $535,250
06-2-26 $27,875 $27,875
12-2-26 $535,000 $27,875 $562,875
06-2-27 $14,500 $14,500
12-2-27 $580,000 $14,500 $594,500
Section 3(B) Deferred Interest,
This sum of$3,111,4002 will be payable from Tax Increment as the same becomes
available, as provided in clause (iii) of the first paragraph of Section 6 of this MOU.
mjsla:rpvmnou.fnl
2The deferred interest calculation assumes issuance of the RDA Bond and
cancellation of the existing Bond on the Settlement Date. If the RDA Bond is issued,
and the existing Bond cancelled, on a different date, deferred interest will be
recalculated to of the actual date of cancellation of the existing Bond.
7 Exhibit "A"
Reso l . No . RDA 97-18