HomeMy WebLinkAboutResolution - SA 21-01STATE OF CALIFORNIA ) RESOLUTION NO. SA 21-01
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO,
CONFIRMING AND RATIFYING THE INCLUSION OF CERTAIN SAN
JACINTO UNIFIED SCHOOL DISTRICT ENFORCEABLE OBLIGATIONS
ON THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE
PERIOD JULY 1, 2021 TO JUNE 30, 2022
WHEREAS, pursuant to Health and Safety Code section 34173(d), the Successor
Agency to the Redevelopment Agency of the City of San Jacinto ("Successor Agency") is
the successor agency to the dissolved Redevelopment Agency of the City of San Jacinto
("RDA"), confirmed by Resolution No. 3408 adopted on January 9, 2012; and
WHEREAS, pursuant to Health and Safety Code section 34179(a), the Riverside
County Oversight Board is the oversight board to the Successor Agency; and
WHEREAS. Health and Safety Code section 34177(m), added by AB 1484, and
effective June 27, 2012, requires that the Successor Agency submit an Oversight Board
approved "recognized obligation payment schedule" ("ROPS") for the period July 1, 2021,
to June 30, 2022, to the Department of Finance, the State Controller, and the County
Auditor -Controller no later than February 1, 2021; and
WHEREAS, on June 28, 1983, the former RDA, City of San Jacinto ("City"), and
San Jacinto Unified School District ("SJUSD") entered into an agreement ("1983
Agreement") providing for the RDA to make certain annual payments ("Pass-Throughs")
to SJUSD from the Original Project Area in accordance with formulas set forth therein;
and
WHEREAS, on December 28, 1993, the former RDA, City, and SJUSD entered
into a separate agreement ("1993 Agreement") providing for the RDA to make additional
annual Pass-Throughs to SJUSD from the Added Area in accordance with different
formulas set forth therein; and
WHEREAS, in 2018, SJUSD staff discovered certain errors made in calculating
the pass -through payment formulas in the 1983 Agreement and the 1993 Agreement for
all years prior to RDA dissolution, inclusive of, but not limited to, Fiscal Years 1999/2000
through 2017/18, and determined that additional pass -through payments for these same
years were owed to SJUSD under both the 1983 and 1993 Agreements, together with
accrued interest (collectively, "Payment Errors"); and
WHEREAS, Section 4.2 of the 1983 Agreement expressly provides that `the
parties hereto shall take further actions as may be reasonably necessary and available
to them to effectuate the intent of the parties to all provisions set forth in this agreement"
(emphasis added), which the Successor Agency asserts includes the intent that the pass -
through payments be corrected if in fact they are discovered to have been paid incorrectly;
and
WHEREAS, Section 18 of the 1993 Agreement expressly provides that `the parties
each agree ... to take such other actions as may be reasonably necessary or appropriate
to fully carry out the intent of the parties as set forth in this agreement" (emphasis added),
which the Successor Agency asserts includes the intent that the pass -through payments
be corrected if in fact they are discovered to have been paid incorrectly; and
WHEREAS, SJUSD and the County of Riverside Auditor -Controller subsequently
executed an "Agreement Between the San Jacinto Unified School District and the County
of Riverside Relative to Redevelopment Reallocations" (the "Settlement Agreement")
under which they agreed to correct the similar post -dissolution misallocations both
prospectively and also to a repayment of the Payment Errors related to amounts owed
plus accrued interest for the period commencing on Fiscal Year 2014/15 and continuing
through Fiscal Year 2018/19; and
WHEREAS, as shown in Exhibit A, which is attached hereto and incorporated
herein by this reference, SJUSD calculates, and the Successor Agency concurs, that
pass -through underpayments and accrued interest owed to SJUSD for pre -dissolution
Fiscal Years 1999/2000 through 2010/11 include: (i) $1,736,205 for the 1983 Agreement
("Total Pre -Dissolution 1983 Pass-Throughs"), including $1,302,763 in principal and
$433,443 in accrued interest from July 1, 2000 through June 30, 2021; and (ii) $932,055
for the 1993 Agreement ("Total Pre -Dissolution 1993 Pass-Throughs"), including
$694,343 in principal and $237,712 in accrued interest from July 1, 2000 through June
30, 2021 (hereinafter, collectively, "Total Pre -Dissolution Pass -Through Amounts"); and
WHEREAS, on December 15, 2020 the City Council, acting in its capacity as the
Successor Agency's governing board, approved Resolution No. SA 20-03 approving
ROPS 21-22, which ROPS 21-22 included the 1983 Agreement and the 1993 Agreement
as two pre-existing, but newly discovered, enforceable obligations pursuant to Health and
Safety Code Section 34171(d)(1)(E), each of which the Successor Agency asserts
constitute a "legally binding and enforceable agreement or contract that is not otherwise
void as violating the debt limit of public policy"; and
WHEREAS, in this case, the Successor Agency finds that each of these
obligations (1) is a "passthrough agreement ... that was entered into prior to January 1,
1994, that would be in force during that fiscal year ... calculated solely on the basis of
passthrough payment obligations, existing prior to the effective date of the RDA
Dissolution Law, as defined in Health and Safety Code Section 34183(a)(1), but is limited
to underpayments for pre -dissolution Fiscal Years 1999/2000-2010/11, including accrued
interest through June 30, 2021, which are not paid by the County Auditor -Controller; and
WHEREAS, pursuant to Bickerdike v. State of California (1904)144 Cal. 681, 692;
Code of Civ. Proc. § 360.5; Mitchell v. County Sanitation District Number One (1957) 150
Cal.App.2d 366, 370-371, the Successor Agency is entitled to waive any applicable
statute of limitations defense only on behalf of the Successor Agency, including
specifically the four-year statute of limitations for breach of written contract, as to the Total
Pre -Dissolution Pass -Through Amounts for Fiscal Years 1999/2000 through 2010/11, and
instead proceed with the payment of the debt obligation, which payment of such a debt is
then a payment of a valid debt; and
WHEREAS, it is the view of the Successor Agency, relative to its waiver of the
statute of limitations to the extent set forth herein, that (i) the Total Pre -Dissolution Pass -
Through Amounts were and are intended to alleviate the financial burden and detriment
placed on the school district by the respective redevelopment project areas, and,
accordingly, any underpayment thereof will have adverse impacts on the community
served by SJUSD, the Successor Agency, the City, and the affected taxing entities; and
(2) these funds are funds rightfully owed to the school district, and, as such, should be
paid through the proper allocation of tax increment pursuant to Health and Safety Code
Section 34183(a)(2).
NOW, THEREFORE, BE IT RESOLVED, ordered, and determined by the
Successor Agency to the Redevelopment Agency of the City of San Jacinto:
SECTION 1. Recitals. The Recitals preceding this Resolution are true and
correct, are hereby incorporated into this Resolution, and shall constitute findings of the
Successor Agency.
SECTION 2. Affirmation of Approval of SJUSD ROPS Items. By way of the
adoption of this Resolution, and for the reasons stated herein, the Successor Agency
hereby reaffirms its approval of the Total Pre -Dissolution Pass -Through Amounts, as set
forth above and in Exhibit A, as included on ROPS 2021-22 adopted by the Successor
Agency, based on the underlying enforceable obligations set forth in the 1983 Agreement
and 1993 Agreement.
SECTION 3. Waiver of Statute of Limitations. The Successor Agency hereby
expressly waives any assertion of a statute of limitations defense available to the
Successor Agency under California Civil Procedure Code Section 337, including
specifically the four-year statute of limitations for breach of written contract, as to the
Pass -Through Amounts for Fiscal Years 1999/2000 through 2010/11 relative to the
Oversight Board and Department of Finance approving the payment of the Pass -Through
Amounts, to the extent otherwise set forth herein.
SECTION 4. Certification. The City Clerk of the City of San Jacinto, acting on
behalf of the Successor Agency as its Secretary, shall certify to the adoption of this
Resolution.
SECTION 5. Necessary Actions. In order to effectuate the purpose and intent of
this Resolution, the Successor Agency hereby authorizes its Executive Director, or their
designee, to take such actions and execute such documentation as reasonably necessary
to confirm the actions and intent of the Successor Agency as set forth herein.
MOVED, PASSED, AND ADOPTED on the 19th day of January, 2021, by the following
Vote:
AYES:
Ayala, Ruiz, Lopez, Ledezma
NAYES:
None
ABSENT:
Hawkins
ABSTAIN:
None
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY
OF SAN JACINTO
A Im 0 L LedeZorm go -
Chairperson
ATTEST:
gency Se re a
APPROVED AS TO FORM:
BEST, BEST S KRIEGER, LLP.
il /'Z ,
Michael J. Maurer
Successor Agency Attorney
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF SAN JACINTO)
CERTIFICATION
1, Sherry Morton, duly appointed Interim City Clerk of the City of San Jacinto, do
hereby certify that the foregoing Resolution No. SA 21-01 was duly passed, approved
and adopted at a regular meeting of the City Council of the City of San Jacinto on the 19t"
day of January 2021, by the following vote:
AYES: Ayala, Ruiz, Lopez, Ledezma
NAYS: None
ABSENT: Hawkins
ABSTAIN: None
WITNESS MY HAND AND OFFICIAL SEAL the 19t' day of January 2021.
tka'A'Ll �mrex'
Sh erry MortInterim City Clerk
City of San a into