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HomeMy WebLinkAboutResolution No. OB-16-2015RESOLUTION NO. OB -16-2015 RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY FOR THE CITY OF AZUSA APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF AZUSA AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY FOR THE CITY OF AZUSA FOR THE EMERGENCY DEMOLITION OF 809 N. DALTON WHEREAS, the Successor Agency to the Redevelopment Agency for the City of Azusa ("Successor Agency") is the successor agency to the former Redevelopment Agency for the City of Azusa ("Redevelopment Agency"); and WHEREAS, the Oversight Board is the Successor Agency's oversight board pursuant to Health and Safety Code Section 34179(a); and WHEREAS, the Redevelopment Agency formerly owned that certain real property located at 809 N. Dalton Street ("Property"), which it transferred to the City in March 2011 as repayment for a City loan; and WHEREAS, the Redevelopment. Agency was dissolved on February 1, 2012, pursuant to ABX1 26, adopted in June 2011, and AB 1484, adopted in June 201.2 (collectively, the "Dissolution Law"); and WHEREAS, pursuant to Health and Safety Code Section 34167.5, the State Controller's Office ("SCO") conducted an audit, dated March 4, 2015, of all asset transfers made by the Redevelopment Agency to the City or any other public agency after January 1, 2011, until the Redevelopment Agency's dissolution ("SCO Report"), which determined that the transfer of the Property from the Redevelopment Agency to the City was unauthorized under the Dissolution Law and that the Property must be transferred to the Successor Agency; and WHEREAS, neither the City nor the Successor Agency dispute that the Property must be transferred to the Successor Agency and both agencies are in the process of transferring the Property from the City to the Successor Agency, but the transfer of the Property has not yet been completed; and WHEREAS, the Property included a building ("Building") that was unoccupied and in a severely dilapidated condition and, despite the City's efforts to board up/secure the Building, the City has recently become aware that transients have been living in the Building, individuals have been illegally removing the copper wiring and piping from the Building, and other dangerous conditions have been occurring therein; and WHEREAS, due to the Building's dilapidated condition, including failure of the roof and the presence of asbestos and lead therein, it is not economically feasible to rehabilitate the Building and the continued existence of the Building poses an attractive nuisance and a clear and imminent danger to the surrounding neighborhood and the general public; and WHEREAS, on September 21, 2015, the City Council unanimously determined that there was substantial evidence demonstrating that the conditions at the Building, and the presence of asbestos and lead therein, constituted a case of an emergency pursuant to Azusa Municipal Code Section 2-523, which exists when a service, repair, or replacement is immediately necessary to avoid the immediate danger to life, health, or property, and pursuant to Public Contract Code Section 1102, which defines an emergency as "a sudden unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services"; and WHEREAS, because the condition of the Building constituted a sudden unexpected occurrence that posed a clear and imminent danger to the surrounding neighborhood and the general public, requiring immediate action to prevent or mitigate the loss or impairment of life, health, or property, the City Council unanimously approved the demolition of the Building pursuant to a contract with GAMA Contracting Service, Inc. for $40,650, and the demolition of the Building was completed on September 29, 2015; and WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(F)(i), an "enforceable obligation" includes agreements necessary for the administration or operation of the Successor Agency including, but not limited to, agreements concerning the costs of maintaining assets prior to disposition; and WHEREAS, pursuant to Health and Safety Code Section 34173(h)(1), the City may loan funds to a Successor Agency for the payment of enforceable obligations; and WHEREAS, because it is in the best interest of the City and Successor Agency, in order to protect the health and safety of the surrounding neighborhood to the Property, to immediately complete the demolition and asbestos and lead abatement of the Property, rather than delaying such actions until the completion of the transfer of the Property from the City to the Successor Agency, the City and Successor Agency entered into Loan Agreement, dated September 21, 2015, in which the City agreed to loan to the Successor Agency the amount of $40,650 for the cost of demolition ("Loan Amount"), and for the Successor Agency to repay the Loan Amount to the City upon completion of the transfer of the Property from the City to the Successor Agency. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY FOR THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. CEOA Compliance. The approval of the Loan Agreement is exempt from the California Environmental Quality Act ("CEQA") (Pub. Res. Code, §§ 21000, et seq. and Title 14 of the California Code of Regulations, §§ 15000 et seq. ("State CEQA Guidelines")), pursuant to 14 Cal. Code of Regs. §15269 as an emergency project. The Oversight Board hereby directs Successor Agency staff to file a Notice of Exemption with the Los Angeles County Clerk's Office.. 01 Section 3. Approval of. Loan Agreement. The Oversight Board hereby approves the Loan Agreement in substantially the form attached hereto as Attachment "A" and incorporated herein by this reference. Section 4. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board declares that the Oversight Board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 5. Effective Date. Pursuant to Health and Safety Code Section 34179(h), all actions taken by the Oversight Board may be reviewed by the State of California Department of Finance, and, therefore, this Resolution shall not be effective for five (5) business days, pending a request for review by the State of California Department of Finance. APPROVED AND ADOPTED THIS 18`x' day of November, 2015. Su Paragas, Boardmember Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa ATTEST: J a ce Cornejo, Ir. Secretary Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa 3 I, HEREBY CERTIFY that the foregoing Resolution No. OB -16-2015 was duly adopted by the Board Members of the Oversight Board to the Successor Agency of the Former Redevelopment Agency of the City of Azusa, at a special meeting thereof held on the 18`h day of November 2015, by the following vote of Board Members: AYES: BOARD MEMBERS: BARBOSA, ROMERO, DICKERSON, PARAGAS NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERSi GONZALES ABSENT: BOARD MEMBERS:HERNANDEZ � of jr a e Cornejo, J. Secretary Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa J