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2012 Council Retreatt ows of 'MEETING DATE: 1/28/2012 ITEM NO: .. COUNCIL /AGENCY AGENDA REPORT !pS GASp3 DATE: JANUARY 24, 2012 TO: MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR SUBJECT: REDEVELOPMENT AGENCY DISSOLUTION ACTIONS A. ADOPT RESOLUTION APPROVING A FIRST AMENDED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE (Agency action) B. ADOPT RESOLUTIONS MAKING A DECLARATION WITH RESPECT TO LOAN, ADVANCE OR INDEBTEDNESS FORGIVENESS IN COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 33354.8 (Agency and Town actions) C. RATIFY APPOINTMENTS BY THE MAYOR TO OVERSIGHT BOARD FOR SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS (Town action) RECOMMENDATION It is recommended that the Redevelopment Agency Board take the following actions: 1. Adopt a resolution approving a First Amended Enforceable Obligations Payment Schedule for the Redevelopment Agency of the Town of Los Gatos (Attachment 1). 2. Adopt a resolution making a declaration with respect to loan, advance, or indebtedness forgiveness in compliance with Health and Safety Code Section 33354.8 (Attachment 2). It is recommended that the Town Council take the following actions: 1. Adopt a resolution making a declaration with respect to loan, advance, or indebtedness forgiveness in compliance with Health and Safety Code Section 33354.8 (Attachment 3). 2. Ratify appointments by the Mayor to the Oversight Board for the Successor Agency to the Los Gatos Redevelopment Agency. PREPARED BY : JENNY HARUYAMA, ASSISTANT FINANCE DIRECTOR/ BUDGET MANAGER Reviewed by: r �•j Assistant Town Manager /Deputy DirectorTown Attorney /General Counsel Finance C:\ Users\ lseastrnm \AppData \Local\Microsoft \Windows \Tempomry Internet Files \Content.Outlook\XSSPYI9V\RDA EOPS AMENDED staff mport.doc PAGE 2 MAYOR AND TOWN COUNCIL /CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: REDEVELOPMENT AGENCY DISSOLUTION ACTIONS January 24, 2012 BACKGROUND In August 2011, the Redevelopment Agency of the Town of Los Gatos adopted an Enforceable Obligation Payment Schedule (EOPS) listing all of the Redevelopment Agency's enforceable obligations (as defined in Section 34167(d) of the Redevelopment Law) for payments required to be made by redevelopment agencies through December 31, 2011. As a result of the implementation of ABx1 26 and the associated California Supreme Court decision in the California Redevelopment Association v. Matosantos litigation, all California redevelopment agencies will now be dissolved effective February 1, 2012. Implementation of ABxl 26 requires the creation of successor agencies and oversight boards to satisfy enforceable obligations of the former redevelopment agencies and administer the dissolution process. A redevelopment agency (before February 1) and its successor agency (starting February 1) can only make payments on enforceable obligations (other than bonded indebtedness) listed on an EOPS until such time as the first Recognized Obligation Payment Schedule (POPS) has been prepared. The successor agency is required to prepare the ROPS, which must be certified and approved by the successor agency's oversight board. The process for preparing, certifying, and approving the ROPS could occur as late as May 2012creating a potential gap between the period initially covered by the EOPS (through December 31, 2011) and the effectiveness of the first ROPS. In accordance with ABx1 26 and as part of the recent California Supreme Court decision, a Redevelopment Agency or Successor Agency must re -adopt the previously adopted EOPS to reflect payments due after December 31, 2011 and amend it to reflect enforceable obligations through the end of this fiscal year (June 30, 20120). By amending the EOPS, the Agency or its successor would avoid possible default on enforceable obligations between January and the operative date of the ROPS. Attached for the Agency Board's consideration is an amended EOPS (Exhibit A). Amendments to the EOPS include, but are not limited to the following: Extension of the payment schedule for the enforceable obligations required to be paid by the redevelopment agency during January 2012 and its successor agency (February 2012) for the period from January 1, 2012 through June 30, 2012; Addition of enforceable obligations of the redevelopment agency that were not previously listed on the EOPS because either: (1) no payments were due prior to December 31, 2011; or (2) the enforceable obligation was inadvertently omitted from the previously adopted EOPS; and Inclusion of administrative costs and professional contracts associated with the operation of the successor agency that is within the administrative cost allowance for the successor agency. Upon approval of the First Amended EOPS, notice will be given to the State Department of Finance and to the Offices of the State Controller and Santa Clara County Auditor - Controller. The Amended FOPS will also be posted on the Town website. PAGE MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: REDEVELOPMENT AGENCY DISSOLUTION ACTIONS January 24, 2012 Loan, Advance, or Indebtedness For iveness A separate redevelopment bill, AB 936, became effective on January 1, 2012 that requires prompt action by the Redevelopment Agency Board and the Town Council. AB 936 requires that, by February 1, 2012, the Agency Board and the City Council (as the legislative body that formed the Agency) each adopt a resolution declaring whether or not it forgave any loan in whole or in part during calendar years 2010 and 2011. For the Town of Los Gatos and the Redevelopment Agency of the Town of Los Gatos, no loans were forgiven during that time period. Within 10 days after adoption of the resolution, the adopting entity must transmit a copy of the resolution to the State Controller and to the Town. Neither the Agency nor the Town were involved in the forgiveness of a loan during 2010 or 2011 of the type specified in AB 936. Accordingly, it is appropriate for the Agency Board and the Town Council to adopt resolutions declaring that no such loan forgiveness has occurred, and directing staff to submit a copy of the resolutions to the State Controller's Office and to the Town. Oversight Board Appointments As noted earlier, ABxl 26 calls for the establishment of an oversight board to supervise the activities of the respective successor agency, including the payment of enforceable obligations. The oversight board will consist of seven members appointed by /representing the following agencies: • County Board of Supervisors (2 members) • Mayor (one member) • County Board of Education (one member) • Chancellor of California Community Colleges (one member); • Largest special district taxing entity (one member) • A former RDA employee appointed by Mayor (one member) Following is information regarding appointments made or planned to -date: • On January 24, the County Board of Supervisors appointed Traci.Hess and Irene Lui, both County financial staff, to the Oversight Board for the Successor Agency to Redevelopment Agency of the Town of Los Gatos. • The Board also appointed Douglas Sporleder as the County Central Fire District representative. Former Chief Sporleder was bom in Los Gatos and retired in 2003. • The State California Community College Chancellor's Office will make the official appointment to the Oversight Board based upon recommendations from the colleges. While not confirmed, the President of West Valley College has informed the Town that Vice Chancellor for Administrative Services, Ed Maduh may be appointed to the Oversight Board. • With regard to Los Gatos appointments, the Mayor is appointing himself and, upon consultation with the Town Manager, Jessica VonBorck, Economic Vitality Manager, an employee of the Agency. Once the appointments to the Oversight Board have been made by all of the required agencies, the Town will convene the first meeting prior to the May 1, 2012 deadline. All meetings will be publicly noticed pursuant to the State Brown Act and organized and supported by Town staff. PAGE 4 MAYOR AND TOWN COUNCIL /CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: REDEVELOPMENT AGENCY DISSOLUTION ACTIONS January 24, 2012 CONCLUSION: It is recommended that the Agency Board adopt the attached resolution (Attachment 1) authorizing the approval and adoption of a First Amended Enforceable Obligation Payment Schedule and the Agency Board and Town Council adopt the attached resolutions (Attachment 2 &3) declaring that no loan forgiveness of the type described in AB 936 occurred during 2011 or 2012. It is also recommended that the Town Council ratify appointments by the Mayor to the Oversight Board for the Successor Agency to the Los Gatos Redevelopment Agency. ENVIRONMENTAL ASSESSMENT: This action is not a project defined under CEQA, and no further action is required. FISCAL IMPACT Approval and adoption of the attached First Amended Enforceable Obligation Payment Schedule will ensure the payment of enforceable obligations as listed in Exhibit A of Attachment 1. Attachments: Attachment 1: Resolution of the Redevelopment Agency of the Town of Los Gatos approving and adopting a First Amended Enforceable Obligation Payment Schedule (Exhibit A to be distributed Friday, January 27, 2012) Attachment 2: Resolution of the Redevelopment Agency of the Town of Los Gatos malting a declaration with respect to a loan, advance, or indebtedness forgiveness in compliance with Health and Safety Code Section 33354.8. Attachment 3: Resolution of the Los Gatos Town Council making a declaration with respect to a loan, advance, or indebtedness forgiveness in compliance with Health and Safety Code Section 33354.8. RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING AND ADOPTING A FIRST AMENDED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law "), the Town Council (the "Town Council ") of the Town of Los Gatos (the "Town ") adopted Ordinance No. 1882 on November 25, 1991, adopting the Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (the "Redevelopment Plan"), as amended from time to time; and WHERAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency") is responsible for implementing the Redevelopment Plan pursuant to the Redevelopment Law; and WHEREAS, ABxl 26 (the "Dissolution Act ") was enacted on June 28, 2011; and WHEREAS, through its December 29, 2011 decision in the case of California Redevelopment Association v. Matosantos (the "Supreme Court Decision "), the California Supreme Court declared the Dissolution Act to be constitutional and revised certain dates for performance of actions under the Dissolution Act; and WHEREAS, the Dissolution Act provides for dissolution of the Agency as of February 1, 2012, at which time the assets and payment obligations (defined in the Dissolution Act as "Enforceable Obligations ") of the dissolving Agency will be transferred to the Town, acting in its capacity as "Successor Agency" (as defined in the Dissolution Act) to the dissolving Agency; and WHEREAS, pursuant to Section 34167(h) and Section 34177(a) of the Redevelopment Law (as added by the Dissolution Act), after August 29, 2011 and until the first "Recognized Obligation Payment Schedule" (as defined in the Dissolution Act) is operative, the Agency or the Successor Agency, as applicable, can only make payments on Enforceable Obligations listed and required on an "Enforceable Obligation Payment Schedule" (as defined in the Dissolution Act); and WHEREAS, in accordance with the foregoing requirements, the Agency adopted its Enforceable Obligation Payment Schedule on Augustl5, 2011 (the "Initial Schedule "), and transmitted the adopted Initial Schedule to the Santa Clara County Auditor - Controller, the State Controller, and the State Department of Finance, all in accordance with Section 34169(g) of the Redevelopment Law; and WHEREAS, to facilitate an orderly transfer of its Enforceable Obligations payment responsibilities on February 1, 2012 to the Town, acting in its capacity as Successor Agency to the Agency, and as authorized pursuant to Section 33169(g)(2) of the Redevelopment Law, the Agency now desires to amend its previously adopted Initial Schedule in the form of a First Amended Enforceable Obligation Payments Schedule referred to as the "First Amended Schedule," which is on file with the Agency Secretary and Town Clerk Administrator; and WHEREAS, the First Amended Schedule, referred to as "Exhibit A," amends the Initial Schedule to update the schedule of payments for Enforceable Obligations and to extend that schedule of payments through June 2012 when the Recognized Payment Obligation Schedule is now expected to become operative under the revised dates for Dissolution Act implementation set forth in the Supreme Court Decision; and WHEREAS under Title 14 of the California Code of Regulations, Section 15378(b)(4), the approval of the Initial Schedule and the First Amended Schedule is exempt from the requirements of the California Environmental Quality Act (' CEQA') in that it is not a project, but instead consists of the continuation of an existing governmental funding mechanism for potential future projects and programs, and does not cormnit funds to any specific project or program, because it merely lists enforceable obligations previously entered into and approved by the Agency; and C: \Users\Isca omWppMta\ eal\Miero ft\ Windows \Temporn, Inoemet Files \Content0mlooM8SPYIMV Aemended EOPS]an 2012-6nal rendutioadoc ATTACHMENT 1 WHEREAS, the Agency's board of directors (the "Agency Board ") has reviewed and duly considered the Staff Report, the proposed First Amended Schedule, and documents and other written evidence presented at the meeting. NOW, THEREFORE, BE IT RESOLVED, that the Agency Board finds that the above Recitals are true and correct and have served, together with the supporting documents, as the basis for the findings and approvals set forth below. BE IT FURTHER RESOLVED, that the Agency Board finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this resolution is exempt from the requirements of CEQA in that it is not a project. The Agency Board therefore directs that a Notice of Exemption be filed with the County Clerk of the County of Alameda in accordance with the CEQA guidelines. BE IT FURTHER RESOLVED, that the Agency Board hereby approves and adopts the First Amended Schedule and declares that the First Amended Schedule amends and replaces the Initial Schedule in its entirety. BE IT FURTHER RESOLVED, that the Agency Board authorizes and directs the Agency's Executive Director or the Executive Director's designee to: (1) post the First Amended Schedule on the Agency or the Town's websites; (2) designate an Agency representative to whom all questions related to the First Amended Schedule can be directed; (3) notify, by mail or electronic means, the Santa Clara County Auditor - Controller, the State Department of Finance, and the State Controller of the Agency's action to adopt the First Amended Schedule and to provide those persons with the internet website location of the posted schedule and the contact information for the Agency's designated contact; and (4) to take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the First Amended Schedule on behalf of the Agency. BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. PASSED AND ADOPTED at a Special Meeting of the Redevelopment Agency of the Town of Los Gatos, California, held on the day of January , 2012 by the by the following vote: REDEVELOPMENT AGENCY MEMBERS: AYES: NOES: . C \II SIGNED: CHAIR OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA ATTEST: SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA C:\ Users \ke tom \AppOata\ callMicrosoR \Windows \Tcmpore Internet Flies \ContrntOutlookMSM9V A=endcd EOPS loo 2012 -final raolutinn.doc RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS MAKING A DECLARATION WITH RESPECT TO LOAN, ADVANCE OR NDEBTEDNESS FORGIVENESS IN COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 33354.8 WHEREAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency ") is responsible for implementing redevelopment programs and activities within its jurisdiction pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "CRL "), and the Town of Los Gatos (the "Town" is authorized to cooperate with the Agency to facilitate such redevelopment pursuant to the CRL; and WHEREAS, Health and Safety Code Section 33354.8, added to the CRL by AB 936 effective January 1, 2012, requires the Agency to adopt a resolution that declares whether or not it has been involved in the forgiveness, during the period of time commencing January 1, 2040, through December 31, 2011, of the repayment, wholly or partially, of a loan, advance, or indebtedness that has been owed by a public body (including, without limitation, the Town to the Agency or by the Agency to a public body (including, without limitation, the Town, and, if so, setting forth specified information about such forgiveness; and WHEREAS, this Resolution is adopted to constitute the resolution required by Health and Safety Code Section 33354.8. NOW, THEREFORE, BE IT RESOLVED, that the Agency Board declares that the Agency has not been involved in the forgiveness, during the period of time commencing January 1, 2010, through December 31, 2011, of the repayment, wholly or partially, of a loan, advance, or indebtedness that has been owed by a public body (including, without limitation, the Town to the Agency or by the Agency to a public body (including, without limitation, the Town. BE IT FURTHER RESOLVED, that the Agency Executive Director or the Executive Director's designee is authorized and directed to transmit a copy of this Resolution to the State Controller and the Town in compliance with Health and Safety Code Section 33354.8(c). BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. !!/ ATTACHMENT PASSED AND ADOPTED at a special meeting of the Board of Directors of the Redevelopment Agency of the Town of Los Gatos, California held on the day of January, 2012 by the following vote: DIRECTORS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: CHAIR OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS, CALIFORNIA ATTEST: SECRETARY OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS, CALIFORNIA RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS MAKING A DECLARATION WITH RESPECT TO LOAN, ADVANCE OR INDEBTEDNESS FORGIVENESS IN COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 33354.8 WHEREAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency ") is responsible for implementing redevelopment programs and activities within its jurisdiction pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "CRL "), and the Town of Los Gatos (the "Town ") is authorized to cooperate with the Agency and to facilitate such redevelopment pursuant to the CRL; and WHEREAS, Health and Safety Code Section 33354.8, added to the CRL by AB 936 effective January 1, 2012, requires a public body (such as the Town) to adopt a resolution that declares whether or not it has been involved in the forgiveness, during the period of time commencing January 1, 2010, through December 31, 2011, of the repayment, wholly or partially, of a loan, advance, or indebtedness that has been owed by the public body (such as the Town) to the Agency or by the Agency to the public body (such as the Town), and, if so, setting forth specified information about such forgiveness; and WHEREAS, this Resolution is adopted to constitute the resolution required by Health and Safety Code Section 33354.8. NOW, THEREFORE, BE IT RESOLVED, that the Town Council declares that the Town has not been involved in the forgiveness, during the period of time commencing January 1, 2010, through December 31, 2011, of the repayment, wholly or partially, of a loan, advance, or indebtedness that has been owed by the Town to the Agency or by the Agency to the Town. BE IT FURTHER RESOLVED, that the Town Manager or the Town Manager's designee is authorized and directed to transmit a copy of this Resolution to the State Controller and the City Council in compliance with Health and Safety Code Section 33354.8(c). BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. ATTACHMENT 3 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the day of January, 2012 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA 2