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HomeMy WebLinkAboutOB Reso 05-2015 RESOLUTION NO. 05-201.5 OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY OF THE CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY RESOLUTION OF THE OVERSIGHT BOARD DIRECTING THE SUCCESSOR AGENCY TO RETURN AN ASSET IN THE AMOUNT OF $8,792,327 RELATED TO THE DOWNTOWN PARKING GARAGE TO THE CITY OF SOUTH SAN FRANCISCO PARKING DISTRICT ENTERPRISE FUND AND TO NULLIFY AND REMOVE THE "LOAN" RECEIVABLE ASSET FROM THE SUCCESSOR AGENCY'S ACCOUNTING RECORDS. WHEREAS, in 2007, $10,000,000 in Redevelopment Agency funds were appropriated to construct the Miller Avenue Parking Garage within the Downtown Parking District ("Project"); and WHEREAS, at the time of the 2007 appropriation, there was no indication of a loan financing the Project, nor were there any accompanying loan documents ever executed; and WHEREAS, the Miller Avenue Parking Garage was budgeted in the City's Capital Improvement Budget for the 2007-08, 2008-09, and 2009-10 fiscal years, with appropriation originating from the former Redevelopment Agency funds in order to construct the garage on land owned by the City and the former Redevelopment Agency under the control of the Downtown Parking District; and, WHEREAS, on December 12, 2007, the City Council adopted a resolution stating that the Project is consistent with the Downtown/Central. Redevelopment Plan; and, WHEREAS, in 2009, the former Redevelopment Agency of the City of South San Francisco ("RDA"), by resolution 11-2009, awarded the Project to C. Overaa & Co., and subsequently entered into an agreement with C. Overaa & Co. for the construction of the Miller Avenue Parking Garage; and WHEREAS, the Miller Avenue Parking Garage was completed and opened for use in 2011,. and has since been utilized for public use; and WHEREAS, the Miller Avenue Parking Garage is located completely within the former Downtown. Central Redevelopment Project Area; and, WHEREAS, the appropriations and the expenditures for the Miller Avenue Parking Garage were valid RDA expenditures, and the vast majority of funds were expended prior to January 1, 2011, the beginning effective date of RDA dissolution; and WHEREAS, there are conflicting accounting records that show funds expended prior to 2011 as both an RDA expenditures and then later as an "advance", however an "advance" is an 1 accounting term in municipal accounting when one fund provides funds for another fund, and in this case, it appears that City accounting staff booked the expenditures as an advance administratively without fonual City Council or RDA Board approval; and, WHEREAS, Health and Safety Code § 34181 permits the Oversight Board for the Successor Agency of South San Francisco Redevelopment Agency ("Board") to direct the Successor Agency to transfer ownership of assets used for a governmental purpose to the appropriate public jurisdiction; and WHEREAS, there is no loan agreement or any other existing agreement between the RDA and the City or its Parking District to dictate how the assets should be treated; and WHEREAS, in November 2013, Oversight Board adopted the Long Range Property Management Plan ("LRPMP") for the Successor Agency, which includes land underlying a portion of the Miller Avenue Parking Garage, and that land and the Miller, Avenue Parking Garage are specifically set aside for governmental use within the LRPMP and is a critical component to the economic revitalization of the downtown; and WHEREAS, downtown area businesses benefit from the provision of additional parking in the downtown area, and therefore the construction of a parking garage that is publicly owned is of benefit to the former Project Area; and WHEREAS, a parking garage in the Downtown area was consistent with the RDA Implementation Plan in effect at the time. The Implementation Plan in effect at the time of appropriations sought to revitalize the downtown, encourage customers to shop, and make the area more pedestrian friendly. On June 4, 2007, a City Council Staff Report stated that the project could spur future commercial development and create a "more pleasant pedestrian experience." Thus, before the 2007-08 CIP Budget was adopted, the proposed garage was described by the City Council in terms that were consistent with the goals of the RDA Implementation Plan. NOW, THEREFORE, BE IT RESOLVED that the Oversight Board for the Successor Agency of the City of South San Francisco Redevelopment Agency hereby: 1. Finds that the foregoing Recitals are true and correct and made a part of this Resolution. 2. Finds that the return of the asset through this Resolution itself does not commit the Successor Agency or the City of South San Francisco to any action that may have a significant effect on the environment and thus does not constitute a "project" subject to the requirements of the California Environmental Quality Act ("CEQA"), pursuant to CEQA Guidelines §15061(b)(3). 3. Following the recording in the accounting records of a "loan" in the amount of $8,792,327 from the Successor Agency to the Downtown Parking District Enterprise Fund, directs the Successor Agency to nullify and return that same "loan" receivable asset from the Successor Agency of the former Redevelopment Agency in the amount of $8,792,327 to the City's Downtown Parking District Enterprise Fund, related to the 2 construction of the Miller Avenue Parking Garage, and removing the receivable asset from the Successor Agency's accounting records. 4. Authorizes and directs the Successor Agency to undertake such actions as are necessary to carry out the intent of this Resolution, including transmittal of this Resolution to the State Department of Finance. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Oversight Board for the Successor Agency of the City of South San Francisco Redevelopment Agency at a regular meeting held on the 18ffi day of August, 2015 by the following vote: AYES: Boardmembers Addiego, Christensen, Farrales, Scannell, Gross, Chailperson Cullen NOES: None. ABSTAIN: None. ABSENT: Alternate Vice Chair Krause ATTEST: x'andra Tupperdi-/4 ty Clerk versigh r e Successor Agency to the So4h Francisco Redevelopment Age 3