HomeMy WebLinkAboutMINUTES - 08162011 - SD.4RECOMMENDATION(S):
1. APPROVE and ADOPT, pursuant to Health and Safety Code Sections 34167(h), the
Enforceable Obligation Payment Schedule (see Attachment A) containing all of the
obligations which the Agency has determined are enforceable obligations under Health and
Safety Code Section 34167(d), and reserving the Agency's rights to recognize and perform
these obligations without regard to the provisions of Health and Safety Code Section
34169(i).
2. AUTHORIZE the Agency's Executive Director or the Executive Director's designee to:
(a) post the Enforceable Obligation Payment Schedule on the Agency and the County's
websites; (b) designate an Agency representative to whom all questions related to the
Enforceable Obligation Payment Schedule can be directed; (c) notify, by mail or electronic
means, the County Auditor-Controller, the Department of Finance, and the Controller of the
Agency's action to adopt the Enforceable Obligation Payment Schedule and to provide those
persons with an address to the Agency and County's website and a telephone number and
email contact for the Agency's designated contact; and (d) to take such other actions and
execute such other documents as are appropriate to effectuate the intent of this Resolution
and to implement the Enforceable Obligation Payment Schedule on behalf of the Agency.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/16/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:See Addendum
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Steven Goetz,
925-335-1240
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: August 16, 2011
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
SD. 4
To:
From:David Twa, Redevelopment Agency Executive Director
Date:August 16, 2011
Contra
Costa
County
Subject:Adopt the Enforceable Obligation Payment Schedule for the Contra Costa Redevelopment Agency
FISCAL IMPACT:
An Enforceable Obligation Payment Schedule will permit the Agency to continue to make payments under its
existing contracts and agreements after August 29, 2011. These obligations are secured by Agency revenue. The
State Department of Finance may review an Agency action, and such actions will not be effective for three
business days, pending a request for review by the State. If the State requests a review of a given Agency action,
the State shall have ten days from the date of its request to approve the Agency action or return it to the Agency
for reconsideration. Agency reconsideration may include not making the payment.
BACKGROUND:
On August 11, 2011, the California Supreme Court agreed to review the California
Redevelopment Association and League of California Cities’ petition challenging the
constitutionality of AB x1 26 and AB x1 27 (the "Redevelopment Restructuring Acts")
and issued an order granting a partial stay on specified portions of the Redevelopment
Restructuring Acts (the “Stay”). Under the terms of the Stay and pursuant to Section
34167(h) of the Redevelopment Law, the Contra Costa County Redevelopment Agency
(the "Agency") cannot continue to make payments under its existing contracts and
agreements after August 29, 2011, unless the Agency adopts an Enforceable Obligation
Payment Schedule listing all of the obligations that are enforceable within the meaning of
Section 34167(d) of the Redevelopment Law. Provisions in the Redevelopment
Restructuring Acts that provide the Department of Finance rights to review and challenge
listed enforceable obligations are included in the Stay: therefore, to protect the Agency's
interests, the Agency reserves its rights to perform its obligations and to challenge any
contrary determinations by the Department of Finance.
At this point the Board of Supervisors has not adopted an ordinance to enable the Agency
to "opt-in" to the Voluntary Redevelopment Program (commencing with Part 1.9 to
Division 24 of the Health and Safety Code). ABx1 26 (the Dissolution Act) obligates the
Agency to adopt an Enforceable Obligation Payment Schedule at a public meeting prior
to August 29, 2011. An Enforceable Obligation Payment Schedule is important because it
will permit the Agency to continue to make payments under its existing contracts and
agreements after August 29, 2011 during the pendency of the Stay and until the Board
determines whether or not it will opt-in to the Voluntary Redevelopment Program or
dissolve the Agency.
Generally the Enforceable Obligation Payment Schedule is a list of all of the Agency's
debts and obligations. If the Agency is dissolved, the Enforceable Obligation Payment
Schedule will be used to determine the distribution of property taxes after the dissolution
of the Agency. The Enforceable Obligation Payment Schedule will be effective until a
Recognized Obligation Payment Schedule is adopted by the successor agency. The
Recognized Obligation Payment Schedule is essentially the successor agency's version of
the Enforceable Obligation Payment Schedule; however, it must be approved by an
oversight board who will determine whether or not the contracts listed on the schedule
should be honored. The adoption of an Enforceable Obligations Payment Schedule is an
important step and care should be taken in preparing the schedule.
The Board, through the Board’s Finance Committee, is in the process of evaluating the
feasibility of participation in the Voluntary Redevelopment Program. The Agency's
adoption of an Enforceable Obligation Payment Schedule will not hamper the Board of
Supervisors’ ability to make that determination.
The Enforceable Obligation Payment Schedule must list all of the Agency's enforceable
obligations and must include the following information for each obligation:
• Project name associated with the obligation;
• Payee;
• Description of the nature of the work, product, service, facility or other thing of value
for which payment is to be made; and
• Payments the Agency is obligated to make, by month, through December 2011.
The payment schedules for issued bonds may be aggregated and the payment schedules
for payments to employees may be aggregated.
The Enforceable Obligation Payment Schedule must be adopted at a public meeting by
the Agency Board. There are no special notice requirements. Once adopted the
Enforceable Obligation Payment Schedule must be posted on the Agency's website or the
County's website. The Enforceable Obligation Payment Schedule must be transmitted to
the State Department of Finance, State Controller and County Auditor-Controller,
however, notification providing the website location of the schedule is sufficient for this
transmittal.
Under Section 34169(g)(2), the schedule may be amended at any public meeting of the
Agency. Like the adopted schedule, any amendment to the schedule must be posted on
the Agency’s web site. The Agency will be required to wait at least three business days
before making a payment under the amended schedule.
CONSEQUENCE OF NEGATIVE ACTION:
The Agency will not be able to make routine debt service payments or other payments
unless the Agency Board adopts an Enforceable Obligation Payment Schedule before
August 29, 2011.
CHILDREN'S IMPACT STATEMENT:
None.
CLERK'S ADDENDUM
By unanimous vote, the Board accepted new material into the record which revised text
in the recommendations and background sections of the board order (the revisions
have been incorporated), and ADOPTED the recommendations as presented.
ATTACHMENTS
Enforceable Obligation