SA - Resolution 28080-SARESOLUTION NO. 28080 -SA
RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA ROSA, IN ITS CAPACITY
AS SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE
CITY OF SANTA ROSA, APPROVING AND ADOPTING AN ADMINISTRATIVE
BUDGET AND RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO
HEALTH AND SAFETY CODE SECTION 341770) -(1)
WHEREAS, on December 29, 2011, the California Supreme Court issued its final
decision in the litigation of California Redevelopment Association v. Matosantos, upholding
Assembly Bill xl 26 (codified as Health and Safety Code § §34161- 34191) ( "ABxl 26 ") and
invalidating Assembly Bill xl 27 (the legislation that would have permitted redevelopment
agencies to continue operation if their sponsoring jurisdiction agreed to make certain payments
for the benefit of schools and special districts); and as a result, all California redevelopment
agencies were dissolved, effective February 1, 2012; and
WHEREAS, pursuant to Health and Safety Code §34173(d), on January 10, 2012, by
Resolution No. 28029, the Council of the City of Santa Rosa elected to become the successor
agency to the Redevelopment Agency of the City of Santa Rosa ( "Agency "); and
WHEREAS, on January 23, 2012, by Resolution No. 1669, the Agency approved and
adopted a revised Enforceable Obligation Payment Schedule ( "EOPS ") for the period of January
1, 2012 through June 30, 2012, pursuant to Health & Safety Code § §34169 and 34177; and
WHEREAS, on February 28, 2012, by Resolution No. SA- 28048, the City Council, in its
capacity as Successor Agency -to the Former Agency, approved a Draft Recognized Obligation
Payment Schedule for the period of January 1, 2012 through June 30, 2012; and
WHEREAS, Health and Safety Code §341770) requires the successor agency to the
former redevelopment agency to prepare an Administrative Budget that includes the estimated
amounts for successor agency administrative costs for each six month period and submit it to the
oversight board for its approval; and
WHEREAS, Health and Safety Code §34177(1), requires the successor agency to the
former redevelopment agency to prepare a Recognized Obligation Payment Schedule (ROPS) for
each six month period, which sets forth the nature, amount, and source(s) of payment for all
"enforceable obligations" of the Agency (as defined by law) to be paid by the successor agency
after the Agency's dissolution; and
WHEREAS, Health and Safety Code §34177(1)(2)(B) -(C) requires the successor agency
to submit the ROPS to the successor agency's oversight board for its approval, and upon such
approval, the successor agency is required to submit a copy of the approved ROPS ( "Approved
ROPS ") to the Sonoma County Auditor - Controller, the California State Controller, and the State
of California Department of Finance, and post the Approved ROPS on the successor agency's
website; and
Reso. No. 28080 -SA
Page 1 of 3
WHEREAS, only payments required pursuant to the ROPS may be made by the
successor agency after May 1, 2012, and the county auditor - controller will allocate property tax
increment to successor agencies to pay debts listed on the Approved ROPS; and
WHEREAS, there is substantial controversy around the application of the enforceable
obligations provision, including controversy specifically relating to the retroactive effect of those
provisions which invalidate City /Agency obligations entered into by the Agency prior to
adoption of ABxl 26. These loans and funding agreements were enacted in accordance with
redevelopment law and are legal and binding obligations of the Agency; and
WHEREAS, pursuant to Health and Safety Code §34171(d)(2), the new law does not
recognize any City loans to the Agency as "enforceable obligations" except for loans made to the
Agency within the first two (2) years of the formation of the Agency, or loans that relate to
issued securities. Instead, the new law would effectively treat these loans as contributions of
funds by the City to the Agency. ABxl 26 directs the successor agency to not make payments
on these agreements and loans and to remove them from the EOPS. However, given pending
and possible future litigation and legislation to clean up several provisions in ABxl 26, including
the provisions relating to agreements and loans between the City and Agency, legal experts
recommend continuing to list such obligations on the ROPS. This will provide an opportunity
for further clarification of the law and its application as well as for community input, including
the oversight board, regarding specific obligations and the unique set of circumstances that each
such loan and agreement carries.
NOW, THEREFORE, BE IT RESOLVED that the City of Santa Rosa, in its capacity as
the successor agency to the former Redevelopment Agency of the City of Santa Rosa, hereby
finds and determines:
Section 1. Recitals The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. CEQA Compliance The approval of the ROPS through this Resolution
does not commit the successor agency to any action that may have a significant effect on the
environment. As a result, it does not constitute a project subject to the requirements of the
California Environmental Quality Act in that pursuant to CEQA Guidelines Section 15061(b)(3),
it is covered by the general rule that CEQA applies only to projects which have the potential for
causing a significant effect on the environment; and where it can be seen with certainty that there
is no possibility that the activity in question may have a significant effect on the environment,
the activity is not subject to CEQA.
Section 3. Approval of Administrative Budget The successor agency hereby
approves and adopts the Administrative Budget, in substantially the form attached to this
Resolution as Exhibit B, as required by Health and Safety Code §34171(a) -(b) and §341770).
Section 4. Approval of ROPS The successor agency hereby approves and adopts the
ROPS, in substantially the form attached to this Resolution as Exhibit A, as required by Health
and Safety Code §34177.
Reso. No. 28080 -SA
Page 2 of 3
Section 5. Transmittal of Administrative Budget and ROPS The City Manager or
her designee, on behalf of the Successor Agency, is hereby authorized and directed to undertake
any actions as are necessary to carry out the purposes of this Resolution and comply with
applicable law regarding the Administrative Budget and ROPS including, without limitation, the
execution of documents and all other actions, subject to any minor conforming, technical or
clarifying changes approved by the City Attorney. Such actions may include, but are not limited
to (1) submitting the Administrative Budget and ROPS to the successor agency's oversight
board; and (2) submitting the approved ROPS to the Sonoma County Auditor - Controller, the
California State Controller and the State of California Department of Finance, and posting the
approved ROPS on the successor agency's website.
Section 6. Effectiveness This Resolution shall take effect immediately upon its
adoption.
IN COUNCIL DULY PASSED this 10th day of April, 2012.
AYES: (4) Mayor Olivares, Council Members Bartley, Ours, Vas Dupre
NOES: (0)
ABSENT: (3) Vice Mayor Sawyer, Council Members Gorin, Wysocky
ABSTAIN: (0)
ATTEST Y - t LA APPROVED:
Deputy City Clerk Mayor
APPROVED AS TO FORM:
City Attorney
Reso. No. 28080 -SA
Page 3 of 3
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