HomeMy WebLinkAboutStaff Report 5/9/2012 AGENDA
PETALUMA OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE FORMER
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
May 9, 2012 9:00 A.M.
Petaluma City Hall: Council Chambers
11 English Street, Petaluma, CA 94952
(707) 778-4549 / Fax (707) 7784586
1. ROLL CALL and Introductions of Committee Members and Staff:
Grant Davis; Scott Duiven; Mike Healy; Steve Herrington;.Kate Jolley; David Rabbitt;
John Scharer
2; APPROVAL OF MINUTES:
A. Approval of Minutes of the Regular Oversight Board to the Successor Agency of the
Former Petaluma Community Development Commission of Wednesday, April 25, 2012.
3. PUBLIC COMMENT: The Committee will hear public comments only on matters over
which it has jurisdiction. There will be no Committee discussion or action. The Chair will
allot no more than three minutes to any individual. If more than three persons wish to speak,
their time will be allotted so that the total amount of time allocated to this agenda item will
be 15 minutes.
4. AUTHORIZE THE TRANSFER OF HOUSING ASSETS:
A. Adopt resolution directing the Successor Agency to transfer affordable housing assets to
the Successor Housing Agency. (Alverde)
5. OVERSIGHT BOARD LEGAL REPRESENTATION
A. Staff presentation to discuss Oversight Board legal representation. (Alverde)
6. ECONOMIC DEVELOPMENT BUDGET
A. Staff presentation to discuss the Petaluma Economic Development Program. (Alverde)
Page 1
7. APPROVAL OF SUCCESSOR AGENCY BUDGET AND REVIEW, DISCUSS,
CONSIDER AND APPROVE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE PERIOD JULY 1 —'DEC 31, 2012 (ROPS#2):
A. Adopt a resolution approving the ROPS and the Successor Agency administrative budget.
(Alverde/Castellucci)
8. ADJOURNMENT
For accessible meeting information,
please call (707) 778-4360 or
TDD (707) 778-4480
In accordance with the Americans with Disabilities Act, if you require special assistance to participate in this
meeting, please contact the City Clerk's Office at (707) 778-4360 (voice) or (707) 778-4480 (TDD).. Translators,
American Sign Language interpreters, and/or assistive listening devices for individuals with hearing disabilities will
be available upon request. A minimum of 48 hours is needed to ensure the availability of translation services. In
consideration of those with multiple chemical sensitivities or other environmental illness, it is requested that you
refrain from wearing scented products. The City Clerk hereby certifies that this agenda has been posted in
accordance with the requirements of the Government Code.
Please Note:,In accordance with Government Code §54957.5, any materials of public record-relating to an agenda
item for a regular meeting of the Petaluma Oversight Board that are provided to aanajority, of the members less
than 72 hours before the meeting will be made availableat the City Clerk's Office, I I English Street, during normal
business hours. Materials of public record that are distributed during the meeting shall be made available for public
inspection at the meeting if prepared by the City or a member of its legislative/advisory body, or the next business
day after the meeting if prepared by some other person.
Page 2
April 25, 2012 Vol. 1, Page 1
Petaluma, California
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE FORMER
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
1 Draft Minutes
2 Wednesday, April 25, 2012
3 Regular Meeting
4
5
6
7 CALL TO ORDER- 9:00 A.M.
8
9 1. Roll Call
10
11 Present: Grant Davis; Scott Duiven; Mike Healy; Steve Herrington; Kate Jolley;
12 David Rabbitt: John Scharer
13 Absent: None
14
15 Ingrid Alverde, Economic Development and.Redevelopment Manager, City of
16 Petaluma
17
18 Introductions
19
20 Kate Jolley, Director of Fiscal Services, Santa Rosa Junior College
21
22 Steve Herrington,Sonoma County Superintendent of Schools
23
24 Mike Healy, Petaluma City Council
25
26 David Rabbitt, Sonoma County Board of Supervisors
27
28 Scott Duiven, Senior Planner, City of Petaluma
29
30 John Scharer, Retired,Appointed by Sono"ma County Board of Supervisors
31
32 Grant Davis; General Manager, Sonoma County Water Agency
33
34 Robin Donoghue
35
36 Sue Castellucci, Housing Program Specialist, City of Petaluma
37
38 Larry Zimmer, Capital Improvements Engineering Manager, City of Petaluma
39
•
Vol. 1, Page 2 April 25, 2012
1 Bonne Gaebler, Housing Administrator, City of Petaluma
2
3 2.
4 OATH OF OFFICE
5
6
7 A.
8 Administer Oath of Office
9
10
11 Claire Cooper, City Clerk; City of Petaluma and Recording Secretary for
12 the Oversight Board.
13
14 3.
15 ELECTION OF OVERSIGHT BOARD CHAIR AND VICE-CHAIR
16
17
18 A.
19 Members of the Oversight Board.Shall Nominate and Elect a Chair
20 and a Vice Chair who will Serve in the Absence of a Chair.
21
22
23 MOTION: Appoint Mike Healy as Chair of the Oversight Board.
24
25 Moved by David Rabbitt, with Steve Herrington seconding the motion.
26
27 Vote: Motion carried 7-0
28
29 Yes: Grant Davis; Scott.Duiven; Mike Healy; Steve.Herrington;
30 Kate Jolley; David Rabbitt; John Scharer
31 No: None
32 Abstain: None
33 Absent: None
34
35 Ingrid Alverde
36
37 Mike Healy -
38
39 MOTION: AppointDavid'Rabbitt as Vice-Chair of the Oversight Board.
40
41 Moved by Grant Davis,with John Scharer seconding the motion.
42
43 Vote: Motion carried 7-0
44
45 Yes: Grant Davis; Scott Duiven; Mike Healy; Steve Herrington;
46 Kate Jolley; David Rabbitt; John Scharer
•
April 25, 2012 Vol. 1, Page 3
1 No: None
2 Abstain: None
3 Absent: None
4
5 4.
6 PUBLIC COMMENT
7
8
9 Mike Healy
10
11 Ingrid Alverde
12
13 Mike Healy
14
15 Bill Phillips, Petaluma, believes Mayor David Glass should be the representative
16 of the Petaluma City-Council on the Oversight Board.
17
18 Bryant Moynihan, Petaluma, suggested the board hire an independent accountant
19 to give you an accurate financial report and suggest a new successor agency budget.
20
21 Mike Healy
22
23 5.
24 ESTABLISHMENT OF RULES OF PROCEDURE
25
26
27 A.
28 Adopt by Motion, Rosenberg's Rules of Order as the Board's Rules
29 of Parliamentary Procedures. (Alverde)
30
31
32 Mike Healy
33
34 Steve Herrington
35
36 Mike Healy
37
38 Ingrid Alverde
39
40 Steve Herrington
41
42 .Ingrid Alverde
43
44 Steve Herrington
45
46 Mike Healy
Vol. 1, Page 4 April 25, 2012
1
2 Robin Donoghue
3
4 Mike Healy
5
6 Robin Donoghue
7
8 Mike Healy
9
10 Ingrid Alverde
11
12 MOTION: Adopt A. Rosenberg's•Rules of Order as the Board's Rifles of
13 Parliamentary Procedures.
14
•
15 Moved by John Scharer,with David Rabbitt seconding the motion.
16
17 Vote: Motion carried 7-0
18
19 Yes: Grant Davis; Scott Duiven; Mike Healy; Steve Herrington;
20 Kate Jolley; David Rabbitt; John Scharer
21 No: None
22 Abstain: None
23 Absent: None
24
25 6.
26 ESTABLISHING DATE/TIME/LOCATION OF'OVERSIGHT BOARD MEETINGS
27
28
29 A.
30 Petaluma Oversight'Board Resolution 2012-01 Setting.Dates,
31 Time and Location of Future Meetings.
32
33
34 MOTION: Adopt A. Petaluma Oversight:Board Resolution 2012-
35 01 Setting Dates, Time and Location of Future Meetings.
36
37 Moved by Scott Duiven, with John Scharer seconding the motion.
38
39 Grant Davis
40
41 Mike Healy
42
43 David Rabbitt
44
45 Mike Healy
46
Apri125, 2012 Vol. 1, Page
1 Ingrid Alverde
2
3 Grant Davis
4
5 Mike Healy
6
7 Vote: Motion carried 7-0
8
9 Yes: Grant Davis; Scott Duiven; Mike Healy; Steve Herrington;
10 Kate Jolley; David Rabbitt; John Scharer
11 No: None
12 Abstain: None
13 Absent: None
14
15
16
17
18
19 7. DESIGNATION OF DEPARTMENT OF FINANCE CONTACT FOR
20 OVERSIGHT BOARD
21
22
23 A.
24 Staff recommends Ingrid Alverde, Economic Development&
25 Redevelopment Manager as the Contact Person for the Department of
26 Finance''s,Inquiries'Regarding Oversight Board.Actions.
27
28
29 Mike Healy
30
31 MOTION: Approve A. Designation of Ingrid Alverde, Economic
32 Development&'Redevelopment Manager as the Contact Person for the
33 Department,of Finance's Inquiries Regarding Oversight Board Actions.
34
35
36 Moved by Scott Duiven; with,Steve Herrington,seconding the motion.
37
38 Vote: Motion carried 7-0
39
40 Yes: Grant Davis; Scott Duiven; Mike Healy; Steve Herrington;
41 Kate Jolley; David Rabbitt;John Scharer
42 No: None
43 Abstain: None
44 Absent: None
45
Vol. 1, Page 6 April 25, 2012
1 8.
2 OVERVIEW OF BOARD ROLE AND PROCEDURES
3
4
5 A.
6 Staff Presentation. (Aiverde)
7
8
9 Ingrid Alverde
10
11 Mike Healy
12
13 Claire Cooper
14
15 9.
16 CONFLICT OF INTEREST CODE
17
18
19 A.
20 Petaluma.Overs' ht Board Resolution 2012-02 Approving a
21 Conflict of Interest Code for the Oversight Board. (Aiverde)
22
23
24
25 MOTION: Adopt A. Petaluma Oversi ht Board Resolution 2012-
26 02 Approving a Conflict of Interest Code for the Oversight
27
28 Moved by Steve Herrington, with David-Rabbitt seconding.the motion.
29
30 Vote: Motion carried 7-0
31
32 Yes: Grant Davis; Scott Duiven; Mike;Healy; Steve Herrington;
33 Kate Jolley; David Rabbitt; John Scharer
34 No: None
35 Abstain: None
36 Absent: None
37
38 10.
39 APPROVAL OF SUCCESSOR AGENCY'BUDGET AND REVIEW, DISCUSS,
40 CONSIDER APPROVE RECOGNIZED OBLIGATION PAYMENT'SCHEDULE
41 (ROPS).
42
43
44 A.
45 Petaluma Oversight Board'Resolution 2012-03 Approving the
46 ROPS and the Successor.Agency Administrative Budget.
April,25, 2012 Vol. 1, Page 7
1 (Alverde/Castellucci)
2
3
4 Mike Healy
5
6 Ingrid Alverde
7
8 David Rabbitt
9
10 Ingrid Alverde
11
12 David Rabbitt
13
14 Ingrid Alverde
15
16 Robin Donoghue
17
18 Ingrid Alverde
19
20 Mike Healy
21
22 Steve Herrington
23
24 Ingrid Alverde
25
26 Steve Herrington
27
28 Mike Healy
29
30 Ingrid Alverde
31
32 Mike Healy
33
34 Ingrid Alverde
35
36 Gran t,Davis
37
38 Ingrid Alverde
39
40 Mike Healy
41
42 Steve:Herrington
43
44 Ingrid Alverde
45
46 Mike Healy
Vol.'1, Page 8 April 25, 2012
1
2 Ingrid Alverde
3
4 Steve Herrington
5
6 Ingrid Alverde
7
8 David Rabbitt
9
10 Ingrid Alverde
11
12 •Steve Herrington
13
14 Ingrid Alverde
15
16 Steve Herrington
17
18 Kate Jolley
19
20 Ingrid Alverde
21
22 Kate Jolley
23
24 Ingrid Alverde
25
26 Mike Healy
27
28 Ingrid Alverde
29
30 Mike Healy
31
32 Ingrid Alverde
33
34 Mike Healy
35
36 David Rabbitt
37
38 Ingrid Alverde
39
40 Mike Healy
41
42 Ingrid Alverde
43
44 Mike Healy
45
46 Ingrid Alverde
April'25, 201'2 Vol. 1, Page 9
1
2 Public Comment on Item fOaA
3
4 Anthy O'Brien, Petaluma, Chair, Economic Development Committee,
5 Petaluma Area Chamber of Commerce, stated that the interchanges at Old
6. Redwood Highway and East Washington Streets and the potential
7 interchange at Rainier are "critical" to the widening of Highway 101 and the
8 "ever-growing" need:fora cross-town connector. She also spoke in support of
9 the board keeping funds for redevelopment on the obligations list. She added
10 that the continued;presence of Ingrid;Alverde as Economic Development
11 and Redevelopment Manager is very important.
12
13 Mike.Healy
14
15 Ingrid Alverde
16
17 MOTION:,Adopt A. Petaluma Oversight Board,Resolution 2012-03
18 Approving the ROPS arid the Successor Agency Administrative Budget,
19 with the understanding that the ROPS must still be certified by the.County.
20
21 Moved by John Scharer, with David Rabbitt seconding the motion.
22
23 Grant Davis
24
25 Ingrid Alverde
26
27 David Rabbitt
28
29 Mike Healy
30
31 11.
32 ADIOURNMENT
33
34
35 The meeting was adjourned at 10:10 a.m.
36
37
38
39
40
41
42
43 Mike Healy, Chair
44
45 ATTEST:
46
Vol. 1, Page 10 April 25, 2012
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4 Claire Cooper, Recording Secretary
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i ■y
Item # 4
Oversight Board to the Successor Agency
of the Dissolved
Petaluma Community Development Commission
DATE: May 9, 2012
TO: Members of the Oversight Board
FROM: Ingrid Alverde, Economic & Redevelopment Manager
SUBJECT: Adopt a Resolution.Acknowledging the Transfer of the Affordable Housing Assets
and Functions of the Former Petaluma Community Development Commission to the City of
Petaluma as Housing Successor Agency
RECOMMENDATION
It is recommended that the Board approve the attached resolution acknowledging the transfer
of the affordable housing assets and functions of the former Petaluma Community
Development Commission (PCDC) to the City of Petaluma as the Housing Successor Agency.
DISCUSSION
Community Redevelopment Law required redevelopment agencies to set aside 20% of the tax
increment generated from a redevelopment project to pay for the creation and preservation of
housing affordable to low- and moderate-income households (Low/Mod Funds). When the
State adopted AB X1 26 to eliminate redevelopment agencies Statewide, the new law provided
an opportunity for cities to elect to become the Housing Successor Agency to carry out all
ongoing obligations of the former redevelopment agency as it relates to assets and agreements
generated with the Low/Mod Funds. In doing so, the law states that all assets purchased with
the former redevelopment agency's Low/Mod Fund would also transfer to the newly
established Housing Successor Agency.
On January 23, 2012, the'Cityof Petaluma elected to become the Housing Successor Agency for
the former PCDC. In doing so, the City of Petaluma elected to take ownership of all assets
purchased with Low/Mod Funds. Although the transfer of assets is technically complete as a
matter of law, title,companies are asking for a resolution by the Oversight Board that clearly
authorizes this asset transfer. By approving the attached Resolution, the Oversight Board
formally acknowledges•this'transfer. The Resolution also outlines the fact that the Oversight
Board will not have,any further oversight of actions related to those transferred assets.
ATTACHMENTS
Resolution
a
OVERSIGHT BOARD RESOLUTION NO.
RESOLUTION OF THE OVERSIGHT BOARD FORMED PURSUANT TO HEALTH
AND SAFETY CODE SECTION 34179 TO OVERSEE THE SUCCESSOR AGENCY
FOR`THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION,
ACKNOWLEDGING THE'TRANSFER OF THE HOUSING ASSETS AND,FUNCTIONS
OF THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION''T_O
THE CITY OF PETALUMA AS HOUSING SUCCESSOR AGENCY
WHEREAS, on December 29, 2011, the California Supreme Court delivered its
decision in California Redevelopment Association.v. Matosantos, finding ABX1 26 (the
"Dissolution.Act'')largely constitutional; and
WHEREAS, under ABx1 26 (the "Dissolution Act") and the California Supreme
Court's decision in California Redevelopment Association v. Matosantos, all California
redevelopment agencies, including the-.,Petaluma,Community Development Commission
(the "PCDC" or the%'former PCDC"), weredissolved on February 1, 2012; and
WHEREAS,.on January 9, 2012 by Resolution No. 2012-007 N.C.S. the City
Council of the City of Petaluma adopted a resolution electing to serve as>the Successor
Agency to.the Petaluma Community Development Commission ("PCDC") pursuant to
Health and Safety Code Section 341.77'and other applicable law; and
WHEREAS, on January 23, 2012 by Resolution No. 2012-009 N.0:S. the City
Council of the City of Petaluma adopted a resolution electing that the City of Petaluma
retain the housing assets=and functions of the PCDC, assumed the transfer thereof, and
thereby agreed to serve as the Housing Successor to'the PCDC pursuant to Health and
Safety Code Section 34176(a) and other applicable law; and
WHEREAS,, under Resolution,No..2012-009 N.C.S. and.subjectto the terms
thereof, and consistent with ABx1 26, the City of Petaluma has accepted all rights and
obligations of the former PCDC relating to its housing assets, including, without
limitation, the Low and Moderate Income Housing Fund; all rights, interests, privileges,
and property(real, personal and intangible), including all loans and grants, all land,
buildings and dwelling units held by the former PCDC; and the rights toailproperty to
be transferred to'the former PCDC•for affordable,housing production; and has accepted
all rights and obligations of the former PCDC with respect to its housing functions,
including, without limitation, the entry into'new contracts (including without limitation
subordination agreements), the amendment of existing contracts, and the monitoring of
affordable housing compliance pursuant to regulatory agreements and otherwise; and
WHEREAS, some enforceable obligations relating to the former PCDC's
housing assets and functions have been included in the Recognized,Obligations
Payment Schedule ("ROPS") prepared by the City as Successor Agency and approved
by1he.Oversight Board.on April 25,,2011, and maybe included in future ROPS
submitted to the Oversight Board; and
WHEREAS, Health and Safety Code Section 34177(g) provides that that the
Oversight Board shall effectuate the transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176, which is the City of Petaluma.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board, formed
pursuant to California Health and Safety Code Section 34179 to oversee the Successor
Agency for the former PCDC, hereby finds, resolves, and determines as follows:
1. The foregoing recitals are true and correct.
2. The Oversight Board hereby acknowledges that, as of January 23, 2012,
the City of Petaluma effectuated the transfer of the housing functions and assets of the
former Petaluma Community Development'Commission.to the.City of Petaluma as
Housing Successor, vesting in the Housing Successor the performance of the right to
retain the housing assets and functions previously performed by the former PCDC.
3. The Oversight Board further acknowledges that the Housing Successor
may exercise all rights.and obligations relating to such housing assets and functions,
consistent with ABx1. 26, including but not limited,to entering into new contracts,
amending existing contracts„applying and'using proceeds from the housing assets,
and disposing of housing assets, and that such actions by the Housing Successor are
not and shall not be subject to review and approval by this Oversight Board under the
authority or duties vested in it pursuant to ABx1 26, except to the extent..that the City as
Successor Agency seeks to use property tax revenue funds for the payment or
performance of enforceable obligations under ABx1 26.
Adopted this day of May , 2012 by the following vote:
874934.1
t
Item # 4
Oversight Board to the Successor Agency
of the Dissolved
Petaluma Community Development Commission
DATE: May 9, 2012
TO: Members of the Oversight Board
FROM: Ingrid Alverde, Economic & Redevelopment Manager
SUBJECT: Adopt a Resolution Acknowledging the Transfer of the Affordable Housing Assets
and Functions of the Former Petaluma Community Development Commission to the City of
Petaluma as Housing Successor Agency
RECOMMENDATION
It is recommended that the Board approve the attached resolution acknowledging the transfer
of the affordable housing assets and functions of the former Petaluma Community
Development Commission (PCDC) to'the City of Petaluma as the Housing Successor Agency.
DISCUSSION
Community Redevelopment Law required redevelopment agencies to set aside 20% of the tax
increment generated from a redevelopment project to pay for the creation and preservation of
housing affordable to low- and moderate-income households (Low/Mod Funds). When the
State adopted AB Xl 26 to eliminate redevelopment agencies Statewide, the new law provided
an opportunity for cities to elect to become the Housing Successor Agency to carry out all
ongoing obligations of the former redevelopment agency as it relates to assets and agreements
generated with the Low/Mod Funds. In doingso, the law states that all assets purchased with
the former redevelopment agency's Low/Mod Fund would also transfer to the newly
established Housing Successor Agency.
On January 23, 2012, the City of Petaluma elected to become the Housing Successor Agency for
the former PCDC. In doing so, the City of Petaluma elected to take ownership of all assets
purchased with Low/Mod Funds. Although the transfer of assets is technically complete as a
matter of law, title companies are asking for a resolution by the Oversight Board that clearly
authorizes this asset transfer. By approving the attached Resolution, the Oversight Board
formally acknowledges this transfer. The Resolution also outlines the fact that the Oversight
Board will not have any further oversight of actions related to those transferred assets.
ATTACHMENTS
Resolution
a -O
OVERSIGHT BOARD RESOLUTION NO.
RESOLUTION OF THE OVERSIGHT BOARD FORMED PURSUANT TO HEALTH
AND SAFETY CODE SECTION 34179 TO OVERSEE THE SUCCESSOR,AGENCY
FOR THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION,
ACKNOWLEDGING THE TRANSFER OF THE HOUSING ASSETS AND FUNCTIONS
OF THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION TO
THE CITY OF PETALUMA AS HOUSING SUCCESSOR AGENCY
WHEREAS, on December 29, 2011, the California Supreme Court delivered its
decision in California Redevelopment Association v. Matosantos, finding ABX1 26 (the
"Dissolution Act") largely constitutional; and
WHEREAS, under ABx1 26 (the "Dissolution Act") and the California Supreme
Court''s decision in California Redevelopment Association v. Matosantos, all California
redevelopment agencies, including the Petaluma Community Development Commission
(the "PCDC" or the "former PCDC"), were dissolved on February 1, 2012; and
WHEREAS, on January 9, 2012 by Resolution No. 2012-007 N:C.S. the City
Council of the City'of Petaluma adopted a resolution electing to serve as,the Successor
Agency tathe Petaluma Community DevelopmentCommission ("PCDC") pursuant to
Health and Safety Code_Section 34177 and other applicable law; and
WHEREAS, on January 23, 2012 by Resolution No. 2012-009 N.C.S. the,City
Council of the City of Petaluma adopted a resolution electing that the City of Petaluma
retain the housing assets and functions of the PCDC, assumed the transfer thereof, and
thereby agreed to serve-as the Housing Successor to the PCDC pursuant to Health and
Safety Code Section 34176(a) and other applicable law; and
WHEREAS, under Resolution No. 2012-009 N.C.S. and subjectto the terms
thereof, and consistent with ABx1 26, the City"of Petaluma has accepted all rights,and
obligations of the former PCDC relating toits housing assets, including, without
limitation, the Low and Moderate Income Housing Fund; all rights, interests, privileges,
and property (real, personal and intangible), including all loans and grants, all land,
buildings and dwelling units held by the former PCDC; and the rights to all property"to
be transferred to the former PCDC for affordable housing production; and has accepted
all rights and obligations of the former PCDC with respect to its housing functions,.
including, without limitation, the entry into new contracts (including without limitation
subordination agreements), the amendment of existing contracts, and the monitoring of
affordable housing compliance pursuant to regulatory agreements and otherwise; and
WHEREAS, some enforceable obligations relating to the former PCDC's
housing assets and functions have been included.in the Recognized Obligations
Payment Schedule ("ROPS") prepared by the City as Successor Agency and approved
by the Oversight Board on April 25, 2011, and may be included in future ROPS
submitted to the Oversight Board; and
WHEREAS, Health and Safety Code Section 34177(g) provides that that the
Oversight Board shall effectuate the transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176, which is the City of Petaluma.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board, formed
pursuant to California.Health and Safety Code Section.34179 to oversee the Successor
Agency for the former PCDC, hereby finds; resolves, and determines as follows:
1. The foregoing recitals are true and correct.
2. The Oversight Board hereby acknowledges that, as of January 23, 2012,
the City of Petaluma effectuated the transfer of the housing functions and assets of the
former Petaluma Community Development Commission to the City of Petaluma as
Housing Successor, vesting in the Housing Successor the performance of the right to
retain the housing assets and functions previously performed by the former PCDC.
3. The Oversight Board further acknowledges that the Housing Successor
may,exercise all rights and obligations relating to such housing assets and functions,
consistent with ABx1 26, 'including but not limited;to entering into new contracts,
amending existing contracts, applying and using proceeds from the housing assets,
and disposing of housing assets, and that such actions by the Housing Successor are
not and shall not be subject to review and approval by this Oversight Board under the
authority or duties vested in it pursuant to ABx1 .26, except to the extent that the City as
Successor Agency seeks to use property tax revenue funds for the payment or
performance of enforceable obligations under ABx1 26.
Adopted this day of May , 2012 by the following vote:
1874934.1
Item # 5
Oversight Board to the Successor Agency
of the Dissolved
Petaluma Community Development Commission
DATE: May 9, 2012
TO: Members of the Oversight Board
FROM: Ingrid Alverde, Economic & Redevelopment Manager
SUBJECT: Discussion regarding legal representation for the Oversight Board
RECOMMENDATION
It is recommended that the Board discuss and provide direction to staff regarding legal
representation for the Oversight Board.
BACKGROUND
At the Petaluma Oversight Board's first meeting on April 25, 2012, the Board directed staff to
provide an opportunity on the May 9, 2012 Agenda to consider whether the Board chooses its
own separate legal representation. Currently, Meyers Nave, an experienced firm serving cities
and redevelopment agencies, represents the Successor Agency. They have been following the
new redevelopment dissolution law and meeting with other attorneys to assure that they have
the most up to date information about the new law and its implementation throughout the
State. Meyers Nave will continue to advise the Successor Agency regarding matters of law and
the unwinding of the Petaluma Community Development Commission (PCDC) pursuant to AB
Xl 26. The County Auditor Controller and the State Department of Finance (DOF) will also
review all actions of the Successor Agency under the direction of the Oversight Board.
DISCUSSION
This item was placed on the Board's agenda to allow for discussion and the Board's
determination as to whether it would like to retain separate legal counsel. If the Board chooses
to procure separate legal counsel, staff would follow the City of Petaluma's procurement
process and solicit a minimum of three bids for review. Staff would then provide a
recommendation to the Oversight Board at its July meeting. The contract would then be added
to the ROPS and the fees would be deducted from the funds available for distribution to the
taxing agencies. Meyers Nave believes that the Oversight Board can procure legal
representation and add that cost to the ROPS. However, the DOF has verbally suggested to
other agencies that those expenses may be deducted from the Successor Agency's
administrative allowance. Doing so would erode staff availability to provide service to the
Oversight Board and to administer the Successor Agency affairs.
Item #5
•
Page 2
Recognizing these financial impacts, the board might consider that while Mayers Nave is
representing the Successor Agency, they also insure that any items presented to the Oversight
Board are within the law. As long as there is agreement between the Oversight Board and the
Successor Agency, that level of legal support may be sufficient. If disagreement between the
Oversight Board and the Successor Agency did occur, separate legal representation might be
more appropriate, and could be obtained at that time.
ATTACHMENTS
None
•
•
r.
Item # 6
Oversight Board to the Successor Agency
.ofthe Dissolved
Petaluma Community Development Commission
DATE: May 9, 2012
TO: Members of the Oversight Board
FROM: Ingrid.Alverde, Economic & Redevelopment Manager
SUBJECT: Successor Agency Economic De&elopmentProgram
RECOMMENDATION
Receive staff report.
DISCUSSION
At its April 25, 2012 meeting, the Petaluma Oversight Board (POB) authorized the Successor
Agency to re-enter into a Cooperative Agreement executed between the City of Petaluma and
the former Petaluma Community Development Commission (PCDC). That Cooperative
Agreement obligates the PCDC to pay $6,000,000 towards the City's Economic Development
Program as outlined in the Petaluma Economic Development.Strategy (Strategy) adopted in
November of 2010 (Attachment 1). The.Oversight Board asked staff to provide a summary of
the activities that would be paid for with the $6,000,000 identified in the Cooperative
Agreement.
The Strategy provides a detailed Strengths Weaknesses Opportunities and Threats (SWOT)
analysis of Petaluma's economy and outlines a proposed action plan to address the identified
weaknesses and threats and take advantage of Petaluma's strengths and opportunities. The
short-term, high priority initiatives identified in the plan include staffing an economic
development program to retain current businesses and attract new ones by building
relationships, streamlining the development process and marketing Petaluma as an ideal
location for high tech, manufacturing, and green businesses. The plan also highlights the need
to expand tourism.and to assist future development of opportunity sites including the Petaluma
Fairgrounds, the areas around the future SMART stations and other infill sites in Petaluma's
established business parks. Ultimately, by attracting new businesses to currently vacant office
buildings and,providing incentives to redevelop Petaluma property to attract tourists, Petaluma
will attract jobs and increase property values citywide.
Item # 6
Page 2
A portion of the $6,000,000 will pay,for staff and overhead needed to build relationships and
implement a marketing program .to attract new business to Petaluma. The remaining funds
would be set aside to help support site development'that aligns with Petaluma's development
goals. For example, funds could be provided to a large, manufacturing business interested in
relocating im Petaluma to help pay for infrastructure costs associated with the. move. Or, the
funds could help pay for needed infrastructure to redevelop commercial properties near the
new SMART station or to complete a'Master Plan for the Petaluma Fairgrounds.
The approved EOPS (July — December 2011) provides for a $500,000 payment to the. City of
Petaluma for the Economic Development Program. That would pay -the annual staff and
marketing costs ($115,000 annually)through Fiscal Year 2014-15. The program would staff one
half of an Economic Development Manager and include a $40,000 annual marketing budget
which would yield a 3-year marketing plan, entrance into four industry trade, showsannually,
update the City's economic development website and pay for advertising identified in the
marketing plan. The remaining $270,000 would be set aside for future site 'development.
Going forward staff estimates that there will be sufficient tax increment to pay an additional
$500,000 towards economic development in.Fiscal.Year 2014-15 and Fiscal Year 2015=16, which
will provide an additional $1,000,000 for similar Economic Development activities through
Fiscal Year 2016.
ATTACHMENTS
1. Petaluma Economic Development Strategy Action Plan
° ,
PLAN
Final- November 2010
ACTION PLAN
The Economic Strategic Plan•for:Petaluma is based on the nine goads and related objectiyes
outlined above. Generally'the goals address five basicoutcomes of economic development:
economic stability; economic opportunity; fiscal health; meeting the shopping and service
needs of the local population;and improving quality of life.
Economic stability refers to the ability of thelocal economy to withstand economic cycles
and is achieved by creating a diverse economic base. Economic opportunity refers to the •
existence of a business climate favorable to the start-up and growth of businesses and the
opportunity to find meaningful work and career advancement. Fiscal health refers to the
existence of a tax hase•capable'ofineeting the public service needs,of the community.The
shopping and service needs of the community can be met locally and have the secondary
effect of providing additional tax revenues. All of these outcomes help to improve the
quality of life. In addition,innovative goods and services produced in Petaluma,such as
organic food,alternative energy,medical research, etc.,canhelp to improve quality of life for
society as a whole.
The economic development action plan for Petaluma addresses these goals-in a sequence
that responds to the city's current economic situation:The initial priorities are enhancing
economic opportunity byreducing commercial and industrial vacancy rates and improving
fiscal health. The initiatives related to these priorities are outlined first in the action plan,
followed by longer term strategies that will help to address comprehensive:economic
sustainability for the City.
ECONOMIC DEVELOPMENT ACTION PLAN OUTLINE
Short-Tenn, High-Priority Economic Development Initiatives
A. Build an Economic Development Program
1. Financing Economic.Development Program Functions
2. Establish Petaluma Criteria for Providing Incentives/City Assistance to Businesses
B. Design and Implement a Business Retention and Expansion Program
1. Identify types of businesses to target for business retention and expansion services
2. Form an ad-hoc business retention and expansion•committee
3. Develop and implement a campaign to conduct on-site visits
4. Conduct an annual..business survey
C. ProvideSmall Business Technical Assistance
1. Identify small businesses with capacity for growth
2. Provide business services through a network of service providers
D. Conduct a Business Attraction Campaign
1. Identify..target indus tiies
2. Develop protocol for new business prospects
3. Define.whai Petaluma has to offer new or expanding businesses
Applied Development Economics, Inc. 13
a
Final - November 2010
4. Create marketing message and identify marketing channels &prepare:materials
5. Create Economic Development Website
E. Reduce Vacancies
1. Coordinate delivery of business serdices, provide business outreach and loan programs
2. Plan for adaptive;re-use of vacant buildings
3. Create additional..fle.ibility ih.zotung
4. Review Impact fees
F. Facilitate New Development Within the Central Petaluma Specific Plan Area
1. Develop creative.mechanisms for financing infrastructure replacement or extension
2. Establish partnerships with other agencies and organizations to help nyiplernent the
strategies.
G.,Expand Tourism
1. Package attractions
2 Encourage more full senice hotels and space for conferences
3. Leverage Fairgrounds as'tourism asset
4. Conduct joint marketing
5. MarketPetaluma_as a green transportation hub
6. Track visitor trips
H. De-Mop a Fairgrounds Master Plan
Throe to Five=Year'Strategies
1. Facilitate Industry Cluster Development
1. Diversified inanufacturing
2. Food and beverage processing
3. Construction and green building services
4. Hospitality and tourism
5. Health and wellness
J. Promote Workforce Development
1. Conduct joint marketing of workforce development opportunities
2. Enhance workforce training Offerings
3. Work with Sonoma County\C'orkforceInvestment Board (W1B)
4. Enhance career,technical training and school to work programs
5: Encourage green econoint job training
6. Encourage vocational training in K-12 system
K. Enhance Technology Infrastructure
1. Make City's website more user-friendly
2. Conduct thorough technology assessment
3. Assess emerging technologies and their uses
4. Promote City as "tech savvy community"
I Expand Retail Diversity
1. Plan for transition;of older retail centers
2. Support future expansion;of Auto Plaza
14 Applied Development Economics, Inc.
Item # 7
Oversight Board to the Successor Agency
of the.Former
Petaluma Community Development Commission
DATE: May 9, 2012
TO: Members of the Oversight Board
FROM: Ingrid Alverde, City of Petaluma Economic Development & Redevelopment
Manager
SUBJECT: Approval of the Recognized Obligation Payment Schedule ("ROPS") and
Administrative Budget through December 31, 2012 Submitted by the City of
Petaluma Acting as the Successor Agency to the Former Petaluma Community
Development Commission ("PCDC") Pursuant to Health and Safety Code Section
• 341710
RECOMMENDATION
It is recommended that the Board approve the attached resolution adopting the 2nd
Recognized Obligation Payment Schedule (ROPS #2) for the time period July 1, 2012, through
December 31, 2012 submitted by the City of Petaluma acting as the Successor Agency to the
former PCDC pursuant to California Health and Safety Code Section 341710), and the Successor
Agency Administrative Budget for the same period.
DISCUSSION
Health and Safety Code:Section 34180 requires that the Oversight Board approve a Recognized
Obligation Payment Schedule (ROPS) every six months following the dissolution of the PCDC.
The ROPS outlines enforceable obligations to be paid from former tax Increment funds, bond
proceeds, and redevelopment trust funds. The proposed ROPS for the July 1, 2012 through
December 31, 2012 is provided in Attachment 1.
Health and Safety Code Section 341770) also requires the Oversight Board to approve the
Successor Agency's administrative budget. AB X1 26 allows the Successor Agency to charge
administrative costs to the Redevelopment Trust Fund to wind down the affairs and administer
the debt repayment of the former redevelopment agency.
The Successor Agency administrative budget, shown on the ROPS form C, is set at $250,000, the
minimum allowed by the law. A breakdown of that budget is provided in Attachment 2.
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i
OVERSIGHT BOARD RESOLUTION NO.
RESOLUTION OF THE OVERSIGHT BOARD FORMED PURSUANT TO HEALTH
AND SAFETY CODE SECTION 34179 TO OVERSEE THE SUCCESSOR AGENCY
FOR THE FORMER PETALU,MA COMMUNITY DEVELOPMENT COMMISSION,
APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD ENDING
DECEMBER 31, 2012.
WHEREAS, on December 29, 2011., the California Supreme Court delivered its
decision in California Redevelopment Association v. Matosantos, finding ABX1 26 (the
"Dissolution Act") largely constitutional; and
WHEREAS, under ABx1 26 (the "Dissolution Act") and the California Supreme
Court's decision in California Redevelopment Association v. Matosantos, all California
redevelopment agencies, including the Petaluma Community Development Commission
(the "former PCDC" "), were dissolved on February 1, 2012; and
WHEREAS, on January 9,2012 by Resolution No. 2012-007 N.C.S. the City
Council elected that the:City'of Petaluma serve as the Successor Agencyto the former
PCDC, subject to all limitations, conditions and qualifications stated in that resolution;
and
WHEREAS; under the Dissolution Act, the City in its capacity as Successor
Agency must prepare a"Recognized Obligation Payment Schedule" ("ROPS").that
enumerates the enforceable obligations and expenses of the Successor Agency for the
six-month period ending June 30, 2012; and
WHEREAS, on April 16, 2012, the City Council approved the ROPS for the six-
month period ending June 30, 2012 for the Successor Agency; and
WHEREAS, under the Dissolution Act, the ROPS must be approved by the
Oversight Board to enable the City, acting as the Successor Agency, to continue to
make payments on enforceable obligations of the former PCDC; and
WHEREAS, pursuant to the Dissolution Act, the duly-constituted Oversight Board
for the Successor Agency met at a duly-noticed public meeting on April 25, 2012 to
consider obligations listed on the ROPS, and consider approval of the ROPS; and
NOW, THEREFORE, BE IT'RESOLVED that the Oversight Board, formed
pursuant to California Health and Safety Code Section 34179 to oversee the Successor
Agency for the former PCDC, hereby finds, resolves, and determines as follows:
1. The foregoing recitals are true.and correct.
•
2. The Oversight Board hereby'approves the ROPS#2.for'the period July 1,
2012 through December 31,2012; including the Successor'Agency.Administrative
Budget, in the form presented to the Oversight Board and attached hereto as
Attachment A, including the agreements and obligations described in the ROPS, and
hereby determines that such agreements and obligations constitute "enforceable
obligations" or "recognized obligations" for all purposes of the Dissolution Act.
3. The Oversight Board authorizes and directs the Successor Agency staff to
take all actions necessary under the Dissolution Act to post the ROPS on the Successor
Agency website, transmit the ROPS to the.Auditor,Controller of the County of Sonoma
and to the State Controller and the State Department of Finance, and to take any other
actions necessary to ensure;the validity of the ROPS or the validity of any enforceable
obligation or other agreement approved by the Oversight Board in this Resolution.
Adopted this day of May, 2012 by the following vote:
•