OB - 2013-0011 - Approving Loan Agreement Between the City of Rosemead and The Successor Agency Dated September 10, 2013RESOLUTION: 2013 -0011
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING
THE LOAN AGREEMENT BETWEEN THE CITY OF, ROSEMEAD AND THE
SUCCESSOR AGENCY DATED SEPTEMBER 10, 2013
WHEREAS, The City became the Successor Agency to the redevelopment activities
Rosemead Community Development Commission Redevelopment Agency on February 1,
2012, by operation of law pursuant to AB 26; and
WHEREAS, Health and Safety Code Section 34173(h) authorizes the City to loan funds
to the Successor Agency for enforceable obligations and project - related expenses, provided
that the use of such funds is reflected on a Recognized Obligation Payment Schedule
('BOPS ") which is approved by the Oversight Board established for the Successor Agency
( "Oversight Board ") and further provides that the repayment of such a loan shall be deemed to
be an enforceable obligation of the Successor Agency; and
WHEREAS, Health & Safety Code Section 34191.4 authorizes the Successor Agency,
after receipt from the Department of Finance ( "DOF ") of a finding of completion pursuant to
Health & Safety Code section 34179.7, to utilize excess bond proceeds for the purposes for
which the bonds were issued; and
WHEREAS, the Successor Agency currently holds approximately $7.1 million in excess
bond proceeds from bonds issued prior to January 1, 2011 for the purpose of funding capital
improvement projects in the former redevelopment project area of the City; and
WHEREAS, on April 25, 2012 the Oversight Board for the Successor Agency approved
a list of capital improvement projects to be funded with existing bond proceeds consistent with
the issuing documents for the bonds ( "Capital Improvement Projects "); and
WHEREAS, the DOF issued the Successor Agency a finding of completion on April 18,
2013; and
WHEREAS, the City and Successor Agency began inviting bids for the Capital
Improvement Projects and arranging for the existing bond proceeds to be transferred to the
City, which agreed to act as the overseeing body for the Capital Improvement Projects; and
WHEREAS, on June 12, 2013 the Oversight Board for the Successor Agency confirmed
a Master Agreement for Excess Bond Proceeds ( "Master Agreement') entered into by the City
and Successor Agency under which the excess bond proceeds would be transferred to the
City immediately for use in the Capital Improvement Projects; and
WHEREAS, on August 9, 2013, the DOF disapproved of the immediate transfer of funds
from Successor Agency to City under the Master Agreement and withheld final approval of the
Master Agreement, stating that the Recognized Obligation Payment Schedule ('BOPS ") for the
July 1 to December 31, 2013 time frame could not be amended or modified to reflect that
transfer; and
WHEREAS, in its letter of August 9, 2013 denying the immediate approval of the Master
Agreement transfer of the bond proceeds, the DOF suggested that the City loan funds to the
Successor Agency and have that loan of funds be placed on the succeeding ROPS for
repayment, along with the Master Agreement, with the result being that the entirety of the
excess bond proceeds would transfer to the City for the Capital Improvement Projects via the
ROPS for the January 1 to June 30, 2014; and
WHEREAS, absent the provision of the loan provided for in this Agreement (the "Loan "),
the Successor Agency will have insufficient funds to timely make payments due for
enforceable obligations related to the Capital Improvement Projects.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES:
1. The Loan Agreement between the City of Rosemead and the Successor Agency is a
permitted enforceable obligation under Health and Safety Code section 34173(h).
The Loan Agreement is confirmed by the Oversight Board and shall be submitted to
the Department of Finance for review.
3. The Loan Agreement shall be included on the Recognized Obligation Payment
Schedule beginning with the January through June 2014 period.
4. That the Successor Agency staff transmits the Oversight Board's approval to the
Department of Finance for consideration and approval.
Signatures on next page
PASSED, APPROVED AND ADOPTED this 16th day of September 2013.
W
ATTEST:
a�
Matthe E. Ha kesworth
Successor Agency Staff
Assistant City Manager
I HEREBY CERTIFY that the above and foregoing resolution was duly passed and adopted by
the Oversight Board for the Successor Agency to the Rosemead Community Development
Commission at its special meeting held on the 16th day of September 2013, by the following
vote, to wit:
AYES: ALLRED, JONES, LASH, REDOND.0',,C.HURCHWARD;'SOTELO
NOES: NONE
ABSENT: K.IILLER„ WALLACH
ABSTAINED: NONE
Matth w E. Hafwkesworth
Successor Agency Staff
Assistant City Manager