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HomeMy WebLinkAboutOSB Resolution 2012-07 08/22/2012 Resolution No. 2012-07 Petaluma Oversight Board to the Petaluma Community Development Successor Agency AUTHORIZING THE EXECUTION OF AN AMENDED AND RESTATED COOPERATIVE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY, PURSUANT TO PRIOR OVERSIGHT BOARD APPROVAL OF THE COOPERATIVE AGREEMENT ON APRIL 25, 2012 WHEREAS, pursuant to Resolution 2012-007 N.C.S., adopted by the City Council of the City of Petaluma on January 9, 2012, the City of Petaluma agreed to serve as the Successor Agency to the Petaluma Community Development Commission, a redevelopment agency (""PCDC" or"former PCDC"), commencing upon dissolution of the PCDC on February 1, 2012 pursuant to Assembly Bill xl 26 ("ABx1 26"); and, WHEREAS, the Community Redevelopment Law, Health and Safety Code Section 33000 et seq. (the "CAL"), and specifically Section 33220 thereof, authorized any public body to enter into an agreement with a redevelopment 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, Health and Safety Code Section 33126(b) authorized redevelopment agencies to enter into contracts with any other public agency pursuant to which the public agency would agree to furnish necessary staff services associated with or required by redevelopment; and, WHEREAS, Health and Safety Code Section 33205 authorized redevelopment agencies to delegate to the jurisdiction that formed the agency any of the powers or functions of the redevelopment agency with respect to the undertaking of a redevelopment project, and authorized such jurisdiction to carry out and perform such powers and functions; and, WHEREAS, the governing board of the former PCDC and the City Council of the City of Petaluma ("City Council") each adopted the findings required by Health and Safety Code Section 33445 with respect to the projects and programs described in Exhibit A of the Resolution No.2012-07 Page I Cooperative Agreement attached hereto as Attachment A (the "Projects and Programs") by resolutions adopted on January 31, 2011; and, WHEREAS, the City and the PCDC entered into that certain Cooperative Agreement dated as of January 31, 2011 (the "Original Cooperative Agreement"), pursuant to which, among other things, the City agreed to undertake the construction and installation of the Public Improvements and certain other public improvements, and the PCDC agreed to provide funding for such work; and, WHEREAS, in accordance with ABx1 26, the Successor Agency prepared a Recognized Obligation Payment Schedule ("ROPS") setting forth the schedule of existing former PCDC obligations, including among others, the obligation to provide funding for the Projects and Programs described in Exhibit A of the Cooperative Agreement attached hereto; and, WHEREAS, the Oversight Board approved the ROPS by Resolution No. 2012-03 adopted on April 25, 2012; and, WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing upon February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the redevelopment agency are invalid; provided however, a successor agency that wishes to reenter into agreements with the city that formed the agency may do so upon obtaining approval of the oversight board; and, WHEREAS, following consideration of a Successor Agencystaff presentation and public comment at its April 25, 2012 meeting, by Resolution No. 2012-03, the Oversight Board authorized and directed that the Original Cooperative Agreement and/or the programs thereunder shall continue, and that the Successor Agency shall take any and all steps as may be necessary to effectuate the intent of the Original Cooperative Agreement and the obligations and programs thereunder; and, Resolution No. 2012-07 Page 2 WHEREAS, the City and the Petaluma Community Development Successor Agency desire to enter into an Amended and Restated Cooperative Agreement (the "Agreement") to set forth the construction activities and services that the City will undertake or make available in furtherance of the completion of the Public Improvements, and to provide that the Successor Agency will pay for or reimburse the City for actions undertaken and costs and expenses incurred in connection with such work; and, WHEREAS, the Agreement is intended to amend and restate the Original Cooperative Agreement. NOW THEREFORE, BE IT HEREBY RESOLVED by the Oversight Board formed pursuant to Health and Safety Code Section 34179 to oversee the Petaluma Community Development Successor Agency that it hereby: 1. Approves the Agreement, and authorizes the Executive Director of the Successor Agency to execute and deliver the Agreement substantially in the form attached hereto as Attachment A. 2. Authorizes the Executive Director of the Successor Agency to list-the Agreement and the expenditures authorized thereby on one or more updated ROPS for the Successor Agency as applicable for the covered period. 3. Authorizes the Executive Director of the Successor Agency to execute such other documents and to take such other actions as necessary to carry out the intent of this Resolution. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Petaluma Oversight Board to the Petaluma Community Development Successor Agency at a Regular meeting on the 22nd day of August,2012,by the following vote: AYES: Davis, Duiven;Chair Healy;Herrington; Vice Chair Rabbitt;Scharer NOES: None ABSENT: Jolley ABSTAIN: None o / ATTEST: N` /�/W _ Recording Secretary Chair— Resolution No. 2012-07 Page 3 ATTACHMENT A TO RESOLUTION 2012-07 AMENDED AND RESTATED COOPERATIVE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY, PURSUANT TO PRIOR OVERSIGHT BOARD APPROVAL OF THE COOPERATIVE AGREEMENT ON APRIL 25, 2012 This Amended and Restated Cooperative Agreement (this "Agreement") is entered into effective as of , 2012 ("Effective Date") by and between the City of Petaluma, a municipal corporation ("City") and the Successor Agency for the former Petaluma Community Development Commission ("Successor Agency"). The City and the Successor Agency are hereinafter collectively referred to as the "Parties." RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the Petaluma Community Development Commission ("Redevelopment Agency" or "PCDC") had responsibility to implement the redevelopment plan for the Central Business District Project Area and the Petaluma Community Development Project Area (collectively, the "Project Area") established by the Redevelopment Plan adopted for the Project Area pursuant to Ordinance No. 1221, adopted on September 27, 1976; Ordinance No. 1725, adopted on June 13, 1988; and Ordinance No. 2116, adopted on July 18, 2001 (as subsequently amended, hereinafter the "Redevelopment Plan"). B. Section 33220 of the CRL authorized any public body to enter into an agreement with a redevelopment 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. C. Section 33126(b) of the CRL authorized redevelopment agencies to enter into a contract with any other public agency pursuant to which such public agency would agree to furnish necessary staff services associated with or required by redevelopment. D. Section 33205 of the CRL authorized redevelopment agencies to delegate to the jurisdiction that formed the agency any of the powers or functions of the redevelopment agency with respect to the undertaking of a redevelopment project, and authorized such jurisdiction to carry out and perform such powers and functions. E. Section 33445 of the CRL authorized redevelopment agencies, with the consent of the legislative body of the community, to pay for all or a portion of the cost of the land for, and the cost of construction of, any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the redevelopment project area upon the legislative body's adoption of findings that: (1). The acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned are of benefit to the project Resolution No. 2012-07 Page 4 area by helping to eliminate blight within the project area or providing housing for low- or moderate-income persons; (2). No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; and (3). The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to CRL Section 33490. The Parties reaffirm that the facts as set forth in the Section 33445 findings made pursuant to the CRL remain accurate. On January 31, 2011, by Resolutions the governing board of the Redevelopment Agency and the City Council of the City of Petaluma each adopted the findings described in the foregoing Recital with respect to the public improvements described in Exhibit A (the "Public Improvements") attached hereto. The Redevelopment Agency issued tax-exempt Subordinate Lien Tax Allocation Bonds, Series 2011 in the aggregate principal amount of $1 1,369,000 (the "Bonds"). J. In connection with the issuance of the Bonds, the former PCDC and US Bank National Association (the "Trustee") executed an Indenture dated as of March 1, 2011 (the "Indenture") which, among other things, describes procedures applicable to the payment of principal and interest on the Bonds, redemption of the Bonds and the use of the proceeds of the Bonds. K. Section 12.04 of the Indenture provides that the Bonds may not be redeemed prior to May 1 2018. L. The Indenture provides that the proceeds of the Bonds may be used only for costs of the project as defined in and more particularly described in the Indenture (the "Project"). M. The City and the Redevelopment Agency entered into that certain Cooperative Agreement dated as of January 31, 2011 (the "Original Cooperative Agreement"), pursuant to which, among other things, the City agreed to undertake the construction and installation of the Public Improvements and to undertake certain other programs and services, and the Redevelopment Agency agreed to provide funding for such work, programs and services.. N. Pursuant to Resolution No. 2012-007 N.C.S., adopted by the City Council on January 9, 2012, the City elected to serve as the Successor Agency to the Redevelopment Agency commencing upon dissolution of the Redevelopment Agency on February 1, 2012, pursuant to Assembly Bill xl 26 ("ABx1 26"), and thereby assumed the rights and obligations of the Redevelopment Agency. O. Pursuant to Resolution No. 2012-009 N.C.S. adopted by the City Council on January 23, 2012, the City elected to retain the housing functions and assets of the Redevelopment Agency as of February 1, 2012 and to serve as Housing Successor to the Redevelopment Agency. P. In accordance with ABx1 26, the Successor Agency prepared a Recognized Obligation Payment Schedule ("ROPS") setting forth the schedule of existing former PCDC obligations, Resolution No. 2012-07 Page 5 including, among others, the obligations to provide funding for the Public Improvements and the other programs and services described in Exhibits A and B attached hereto. Q. An oversight board for the Successor Agency was established pursuant to ABx1 26 (the "Oversight Board"). R. The Oversight Board approved the ROPS by Resolution No. 2012-03 on April 25, 2012. S. Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing on February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the redevelopment agency are invalid; provided however, that a successor agency that wishes to reenter into agreements with the city that formed the redevelopment agency may do so upon obtaining approval of the oversight board. This Agreement is entered into pursuant to the express authority of Health and Safety Code Section 34178(a). T. Following consideration of a Successor Agency staff presentation and public comment at its April 25, 2012 meeting, by Resolution No. 2012-03 the Oversight Board authorized and directed that the Original Cooperative Agreement and/or the programs thereunder shall continue, and that the Successor Agency shall take any and all steps as may be necessary to effectuate the intent of the Original Cooperative Agreement and the obligations and programs thereunder. U. The Parties desire to enter into this Agreement to set forth activities, services, and facilities that the City will undertake or make available to the Agency in furtherance of the redevelopment of the Project Area, and to provide that the Successor Agency will pay for or reimburse the City for actions undertaken and costs and expenses incurred in connection with such work. V. The Parties intend this Agreement to amend and restate the Original Cooperative Agreement. W. The execution of this Agreement was approved by the City Council by Resolution No. , on and by the governing board of the Successor Agency by Resolution No. each adopted on June 18, 2012. X. The execution of this Agreement was approved by the Oversight Board by Resolution No. adopted on August 22, 2012. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, the Parties hereby agree as follows. 1. Term. The term of this Agreement shall commence on the Effective Date, and shall continue in effect until the earlier of the date that the Public Improvements are completed, or the date by which the City has received all property tax revenue payable to the City pursuant to this Agreement. 2. City to Construct Public Improvements and Pay for Programs and Services. The City agrees to undertake or otherwise cause to be performed the construction and installation of the Resolution No. 2012-07 Page 6 Public Improvements and to undertake the programs and services described in the attached Exhibits A and B. 3. Successor Agency to Pay for Public Improvements. The Successor Agency agrees to provide to the City the amounts set forth in Exhibit A for the cost of construction of the Public Improvements and the amounts set forth in Exhibit B for the cost of the programs and services therein identified, and in accordance with the schedule set forth therein. The Successor Agency agrees to take all actions reasonably necessary to make such funds available to City, including without limitation, the listing of this Agreement on the Successor Agency's Recognized Obligation Payment Schedule. 4. Source of Funds. The Parties acknowledge that the sole source of funds available to the Successor Agency to make the payments to City required pursuant to this Agreement are the proceeds of the Bonds (defined above) and the allocation of property tax revenue by the Sonoma County Auditor-Controller to the Successor Agency from the Redevelopment Property Tax Trust Fund established by the Sonoma County Auditor-Controller for the Successor Agency pursuant to Health and Safety Code Section 34170.5. 5. Subordination. The obligation of the Successor Agency to make payments to City pursuant to this Agreement shall be subordinate to any obligation of the Successor Agency to pay debt service on bonds heretofore issued by the former PCDC. 6. Project Approvals; Environmental Review. This Agreement is not intended to limit in any manner the discretion of City in connection with the issuance of approvals and entitlements for the projects described in this Agreement, including without limitation, the undertaking and completion of any required environmental review pursuant to the California Environmental Quality Act ("CEQA") and the National Environmental Policy Act ("NEPA"), as applicable, and the review and approval of plans and specifications. Prior to approving any of the projects described herein, the City acting as lead agency or co-lead agency, shall complete any environmental review required under CEQA or NEPA. 7. Severability. If any term, provision, covenant, or condition set forth in this Agreement, including without limitation the exhibits hereto, is held by the final judgment of a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force and effect to the extent that the basic intent of the Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or modify this Agreement in a manner such that the purpose of any invalidated or voided provision, covenant, or condition can be accomplished to the maximum extent legally permissible. 8. No Third-Party Beneficiaries; Assignments. Nothing in this Agreement is intended to create any third-party beneficiaries to the Agreement, and no person or entity other than the Successor Agency and the City, and the permitted successors and assigns of either of them, shall be authorized to enforce the provisions of this Agreement. Resolution No. 2012-07 Page 7 9. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 12. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. 13. Recitals. The Recitals set forth above are hereby incorporated into this Agreement as though fully set herein. 14. Exhibits. Exhibits A & B attached hereto are hereby incorporated into this Agreement by reference. [SIGNATURES ON FOLLOWING PAGE.] Resolution No. 2012-07 Page 8 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY: CITY OF PETALUMA, a municipal corporation By: David Glass, Mayor ATTEST: By: Claire Cooper, CMC, City Clerk APPROVED AS TO FORM: By: Eric W. Danly, City Attorney Resolution No. 2012-07 Page 9 SUCCESSOR AGENCY: PETALUMA COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY a public body, corporate and politic By: John C. Brown, Executive Director ATTEST: By: Claire Cooper, CMC, Successor Agency Secretary APPROVED AS TO FORM: By: Eric W. Danly, Successor Agency Counsel Resolution No. 2012-07 Page 10 EXHIBIT A 1. Old Redwood Highway Interchange Project Location: Highway 101 and Old Redwood Highway Project Description: This project upgrades the Old Redwood Highway 101 interchange to meet current standards and future traffic requirements. The proposed interchange includes ramp widening and reconfiguration, traffic operations system improvements, over-crossing structure widening to six lanes, including bicycle lanes and enhanced signalization improvements at the intersections. It is to be constructed independently of the Central B portion of the proposed future widening on US 101, and will provide both safety and congestion relief enhancements. The project has a $10M Measure M funding allocation, with the City/local funds paying for the remaining $20.885M costs. Facts: Completion of the public improvements at Old Redwood Highway will help to eliminate blighting conditions in the project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; as well as improving impediments to circulation and access that deter revitalization in the area. Section 33445 Findings: 1. This project will benefit the project area by enhancing key transportation infrastructure in the project area making traffic circulation safer and more efficient. In doing so, the project will enhance the development potential of the area properties and make the area more attractive for business development. 2. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. The payment of funds for the cost of the improvements that are publicly owned.is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated Project Cost: $15,329,000 $1,433,000 2012-2013 $ 12,638,000 2013-2014 $747,000 2014-2015 $511,000 2015-2016 2. 101/East Washington Interchange Project Location: Highway 101 and East Washington Project Description: This project improves the East Washington Street Interchange with Highway 101 by adding a new northbound on-ramp and realigning the existing southbound on-ramp. Currently, project funding consists of SAFTLU $13.5M, demonstration funds $1 M, Measure M $2.9M, and the City$4M local funds toward project right-of-way acquisitions and construction of the East Washington Interchange, for total available funding of$21.4M. The estimated cost to design the MSN-C is $6.5M, for a total project cost of$28M. Facts: Completion of the public improvements at 101 Interchange will help to eliminate blighting conditions in the project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; Resolution No. 2012-07 Page 11 as well as improving impediments to circulation and access that deter revitalization in the area. Section 33445 Findings: 1. This project will benefit the project area by helping eliminate blight by enhancing the vehicular circulation to and through the project area. The upgraded intersection will support additional commercial development and enhance the crosstown connection. 2. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated Project Cost: $1,526,000 $ 749,000 2012-2013 $ 777,000 2013-2014 3. Rainier Avenue Cross-town Connector/Interchange Project Location: Rainier Avenue Project Description: This project provides a new interchange and cross-town roadway under-crossing of US 101. SCTA has agreed to incorporate the under-crossing structure as part of the US 101 MSN C-2 widening project, which is currently in design. To ensure inclusion of the under-crossing structure into the MSN C-2 schedule, the interchange component and the under-crossing component are being studied as two separate, independent projects. As part of the work effort for the cross-town connector roadway portion of the project, a project study report/project report and environmental document must be completed. Facts: Completion of the public improvements at Rainier Avenue including a Cross-town connector will help to eliminate blighting conditions in the project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; as well as improving impediments to circulation and access that deter revitalization in the area. Section 33445 Findings: I. This project will benefit the project area by eliminating blight and improving traffic circulation throughout the project area. The improvements will promote investment and be a catalyst for development in the area. 2. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated Project Cost: $8,472,000 $1,322,000 2012-2013 $7,1 50,000 2014-2015 Resolution No.2012-07 Page 12 4. River Trail-Washington to Lakeville Project Location: Various locations throughout the project area Project Description: This project implements a portion of the Petaluma River Access and Enhancement Plan from Lynch Creek (Near Lakeville Street) to Washington Street. The project will construct a multimodal path along the project limits and construct a pedestrian bridge over the Petaluma River to close a gap in this important pedestrian route. Facts: The project is necessary to rehabilitate and reconstruct a pathway, which will promote multimodal access and connect to the downtown SMART station. Section 33445 Findings: 1. This project will benefit the project area by providing pedestrian access throughout the project area, enhancing access to the river and throughout the downtown area of the project area. 2. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. The payment of funds for the cost of.the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated Project Cost $1,472,000 2012-2013 5. Brownfields Program Location: Various locations throughout the project area Project Description: The City has committed to a $200,000 match to a $1 Million Environment Protection Agency Revolving Loan Fund (RLF) Grant. The RLF works in conjunction with several EPA funded assessment grants to provide financial and technical assistance to property owners for assessment and clean-up of Brownfields within the redevelopment area: Anticipated Project Cost: $200,000 2012-2016 6. Economic Development/Site Development The Economic Development Program will implement the programs and projects identified in the Economic Development Strategy adopted by the City Council in November of 2010. The work will include the establishment of a marketing program, a business expansion and retention program as well as provide incentives to attract new development to Petaluma. Anticipated Project Cost: $6,000,000 2012-2016 Resolution No. 2012-07 Page 13 EXHIBIT B 1. Affordable Housing Programs Redevelopment Funds can be used for the purpose of increasing, improving and preserving the supply of low-and moderate-income housing within the City and for all the costs associated with the affordable housing program. These programs are listed below along with the nonprofit agency that partners with the City of Petaluma. 1. Rental Assistance Program Petaluma People Services 2. Transitional Housing Program Salvation Army 3. Transitional Housing Program Committee on the Shelterless 4. Family Transitional Housing Committee on the Shelterless 5. Fair Housing / Landlord and Tenant Mediations Petaluma People Services Center 6. Mobile Home Rent Control City of Petaluma 7. Rehab of Low-Income Families and Seniors Rebuilding Together Anticipated Project Cost: $2,629,200 2012-2015 Resolution No.2012-07 Page 14