HomeMy WebLinkAboutAdopt Resolution Nos. 2019-01 and 2019-02 approving the Reco RPPROVEb ?-p
City of Huntington Beach
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File #: 18-610 MEETING DATE: 1/22/2019
REQUEST FOR SUCCESSOR AGENCY ACTION
SUBMITTED TO: Honorable Chair and Board Members
SUBMITTED BY: Fred A. Wilson, Executive Director
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
Adopt Resolution Nos. 2019-01 and 2019-02 approving the Recognized Obligation Payment
Schedule (ROPS) and Administrative Budget for the Huntington Beach Successor Agency for
the period of July 1, 2019 through June 30, 2020, in accordance with Health and Safety Code
Section 34177 and related actions
Statement of Issue:
The Successor Agency is requested to approve the Recognized Obligation Payment Schedule
(ROPS) and Administrative Budget for the period of July 1, 2019, through June 30, 2020. An
approved ROPS must be submitted to the County of Orange Oversight Board by January 23, 2019,
and then to the Department of Finance (DOF) by February 1, 2019. This is the third year that the
Successor Agency is submitting an annual ROPS in-lieu-of the previous six-month ROPS period.
This is the first year that the Successor Agency is submitting the ROPS to the Countywide Oversight
Board.
Financial Impact:
The ROPS provides the County Auditor-Controller with the amount of the former Redevelopment
Agency's enforceable obligations for which the Successor Agency anticipates incurring expenditures.
Once approved by DOF, the Successor Agency will be entitled to receive property tax revenue up to
the amount of the DOF-approved enforceable obligations included in the Payment Schedule. The
ROPS requests $15,936,825 in funds to support existing legally required enforceable obligations.
Successor Agency Recommended Action:
A) Adopt Resolution No. 2019-01, "A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Successor Agency Administrative Budget for
the Period July 1, 2019, through June 30, 2020;" and,
B) Adopt Resolution No. 2019-02, "A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Recognized Obligation Payment Schedule for
the Period July 1, 2019 - June 30, 2020 (ROPS 19-20')."
City of Huntington Beach Page 1 of 3 Printed on 1/16/2019
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File #: 18-610 MEETING DATE: 1/22/2019
Alternative Action(s):
Do not adopt the Resolutions and direct staff accordingly. Per Health and Safety Code Section 34177
(m)(2), the Successor Agency will be assessed a $10,000 per-day penalty for failure to submit the
ROPS on a timely basis. Additionally, failure to submit the ROPS within ten (10) days of the deadline
may result in a 25% reduction of the Successor Agency's maximum administrative cost allowance for
the period covered by the delinquent ROPS.
Analysis:
As a result of the California Supreme Court's ruling on the Dissolution Act, all redevelopment
agencies in California were dissolved effective February 1, 2012. The Dissolution Act and AB 1484
describe the procedures to wind-down the affairs of the former redevelopment agencies. These
provisions include the continued payment of recognized enforceable obligations as defined in the law.
The Recognized Obligation Payment Schedule for July 1, 2019, through June 30, 2020, requests
payment for enforceable obligations associated with the former Redevelopment Agency's Tax
Allocation bonds, development agreements, legal services, administrative, and other miscellaneous
costs. The DOF has the authority to review the ROPS and return it to the Successor Agency for
reconsideration and modification.
In 2017, the Governor signed Senate Bill 107, which provided additional "clean-up" to the dissolution
legislation of the former redevelopment agencies. Some of the items within the legislation include the
retention of the City's Oversight Board through June 2018 and changing the bi-annual ROPS to an
annual submittal. Pursuant to HSC Section 34177 (o)(1), commencing with the ROPS in 2016/2017
and thereafter, agencies shall submit an Oversight Board-approved annual ROPS to DOF by
February 1. The State DOF will make its determination by April 15, 2019, and each April 15
thereafter. Therefore, the ROPS shall not be effective until approved by the State DOF.
The County Auditor-Controller has established a new Countywide Oversight Board for review and
approval of the ROPS prior to submittal to the DOF.
The Successor Agency and City are pursuing legal action to begin repayment of former
redevelopment agency loans from the City. The DOF has denied the repayment of these legitimate
redevelopment loans on three separate occasions totaling $71 million.
The Administrative Budget for the July 1, 2019, through June 30, 2020, period reflects a total of
$250,000, which represents the maximum reimbursement to cities allowed by law for costs
associated with administering these obligations.
Environmental Status:
Not applicable
Strategic Plan Goal:
Strengthen economic and financial sustainability
Attachment(s):
1. Resolution No. 2019-01, "A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Successor Agency Administrative
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14r_
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File #: 18-610 MEETING DATE: 1/22/2019
Budget for the Period July 1, 2019, through June 30, 2020;" and,
2. Resolution No. 2019-02, "A Resolution of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach Approving the Recognized Obligation Payment
Schedule for the Period July 1, 2019 - June 30, 2020 (`ROPS 19-20')."
City of Huntington Beach Page 3 of 3 Printed on 1/16/2019
146
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RESOLUTION NO. 2019-01
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
FOR THE PERIOD JULY 1, 2019 THROUGH JUNE 30, 2020
WHEREAS, California Health and Safety Code section 341770) requires that the
Successor Agency to the Redevelopment Agency of the City of Huntington Beach ("Successor
Agency") prepare an administrative budget for each annual fiscal period; and
A draft administrative budget for the fiscal period of July 1, 2019 through June 30, 2020
("Administrative Budget") is attached hereto as Exhibit A; and
California Health and Safety Code section 34177(k) requires the Successor Agency to
provide to the County Auditor-Controller administrative cost estimates for expenses from the
administrative budget that are to be paid from property tax revenues deposited in the
Redevelopment Property Tax Trust Fund for each annual fiscal period; and
All of the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, the Successor Agency to the Redevelopment Agency of the City of
Huntington Beach does hereby resolve as follows:
1. The Successor Agency hereby finds and determines that the foregoing recitals are
true and correct.
2. The Administrative Budget attached hereto as Exhibit A is hereby approved.
3. The Successor Agency staff is directed to: (i) provide the required cost estimates
for expenses to the County Auditor-Controller; and (ii) to do any and all things and to execute
and deliver any and all documents which may be necessary or advisable in order to effectuate the
purposes of this Resolution.
4. The Successor Agency does not intend, by adoption of this Resolution, to waive
any constitutional, legal and/or equitable rights of the Successor Agency or the City of
Huntington Beach under law and/or in equity by virtue of the adoption of this Resolution and
actions approved and taken pursuant to this Resolution and, therefore, reserves all such rights of
the Successor Agency and the City of Huntington Beach under law and/or in equity.
18-7147/193573 1
RESOLUTION NO. 2019-01
PASSED AND ADOPTED by the Successor Agency to the Redevelopment Agency of
the City of Huntington Beach at a regular meeting thereof held on the 22nd day of
January , 2019.
Chairperson
REVIEWED AND APPROVED:
Exec iv rector
APPROVED AS TO FORM:
e al Legal Counsel \\mr
18-7147/193573 2
RESOLUTION NO. 2019-01
EXHIBIT A
ADMINISTRATIVE BUDGET FOR THE PERIOD
JULY 1, 2019 THROUGH JUNE 30, 2020
[behind this page]
18-7147/193573 3
K�SULU� 16/V NO. Cdu/ U /
Successor Agency
Administrative Budget
Department Budget Summary
Other Funds by Object Account
OTHER FUNDS
Expenditure Object Account ROPS 19-20 Budget
RORF Administration(350)
PERSONAL SERVICES
Salaries/Benefits-Permanent 225,000
PERSONAL SERVICES 225,000
OPERATING EXPENSES
Legal Services
Other Professional Services/Operating 25,000
OPERATING EXPENSES 25,000
Total 250,000
Revenue Summary ROPS 19-20 Budget
Administrative Allowance 250,000
Other Funds -
Total 250,000
Significant Changes
Pursuant to AB x126 and AB 1484,the Successor Agency receives RPTTF funding from the County Auditor-
Controller to pay Enforceable Obligations. The Successor Agency also receives a 3% of actual distributed
RPTTF in the preceding fiscal year, or a minimum of$250,000 for administration of the winding down of the
former Redevelopment Agency per fiscal year. Administrative costs associated with the "wind down" and
dissolution of the Redevelopment Agency that exceed the administrative cost allowance will be funded by
Other Funds, pursuant to State rules. Administrative expenses include: personnel costs, legal, and othe
professional services expenses associated with the dissolution and administration of the Successor Agency.
Successor Agency
Res. No. 2019-01
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the Clerk of the Successor Agency to the
former City of Huntington Beach Redevelopment Agency, Huntington Beach,
California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by The Successor Agency to the Redevelopment Agency of the City of Huntington
Beach at a special meeting held on January 22, 2019 and that is was so adopted
by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
Clerk of The Successor Agency to
the Redevelopment Agency of the
City of Huntington Beach, California
RESOLUTION NO. 2019-02
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE PERIOD JULY 1, 2019—JUNE 30, 2020 ("ROPS 19-20")
WHEREAS, pursuant to AB xl 26 (as amended by AB 1484, the "Dissolution Act"), the
separate legal entity known as Successor Agency to the Redevelopment Agency of the City of
Huntington Beach ("Successor Agency") must prepare "Recognized Obligation Payment
Schedules" ("ROPS") that enumerate the enforceable obligations and expenses of the Successor
Agency for each successive annual fiscal period until the wind down and disposition of assets of
the former Redevelopment Agency of the City of Huntington Beach; and
The Successor Agency staff has prepared a ROPS for the annual fiscal period
commencing on July 1, 2019 and continuing through June 30, 2020 ("ROPS 19-20") which is
attached hereto as Exhibit A; and
After reviewing ROPS 19-20, presented to and recommended for approval by Successor
Agency staff, and after reviewing any written and oral comments from the public relating
thereto, the Successor Agency Board desires to approve the ROPS 19-20; and
All of the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, the Successor Agency to the Redevelopment Agency of the City of
Huntington Beach does hereby resolve as follows:
1. The Successor Agency hereby finds and determines that the foregoing recitals are
true and correct.
2. The Successor Agency hereby approves ROPS 19-20 in the form presented to the
Successor Agency and attached hereto as Exhibit A, and hereby determines that such agreements
and obligations constitute "enforceable obligations" and "recognized obligations" for all
purposes under the Dissolution Act.
3. The Successor Agency authorizes and directs the Successor Agency staff to: (i)
take all actions necessary under the Dissolution Act to post ROPS 19-20 on the Successor
Agency website once approved by the Oversight Board to the Successor Agency; (ii) transmit
ROPS 19-20 to the Auditor-Controller and the County Administrator of the County of Orange
and to the State Controller and the State Department of Finance ("DOF"); and (iii) to do any and
all things and to execute and deliver any and all documents which may be necessary or advisable
in order to effectuate the purposes of this Resolution. In addition, the Successor Agency
authorizes and directs the Successor Agency staff to make such non-substantive revisions to
ROPS 19-20 as may be necessary to submit ROPS 19-20 in any modified form required by DOF,
and ROPS 19-20 as so modified shall thereupon constitute ROPS 19-20 as approved by the
Successor Agency pursuant to this Resolution.
18-7147/193571 1
RESOLUTION NO. 2019-02
4. The Successor Agency authorizes the Executive Director, or designee, to make
such non-substantive changes and amendments to ROPS 19-20 as may be approved by the
Executive Director of the Successor Agency and its legal counsel, and Reso1ROPS 19-20 as so
modified shall thereupon constitute ROPS 19-20 as approved by the Successor Agency pursuant
to this Resolution.
5. The Successor Agency does not intend, by adoption of this Resolution, to waive
any constitutional, legal and/or equitable rights of the Successor Agency or the City of
Huntington Beach under law and/or in equity by virtue of the adoption of this Resolution and
actions approved and taken pursuant to this Resolution and, therefore, reserves all such rights of
the Successor Agency and the City of Huntington Beach under law and/or in equity.
PASSED AND ADOPTED by the Successor Agency to the Redevelopment Agency of
the City of Huntington Beach at a regular meeting thereof held on the 22nd day of
January , 2019.
Chairperson
REVIE VED AND APPROVED:
Ex ut' irector
APPROVED AS TO FORM:
G eral Legal Counsel k0W
18-7147/193571 2
EXHIBIT A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE PERIOD JULY 1, 2019 THROUGH JUKE 30, 2020
("ROPS 19-20S")
[behind this page]
KEsvLuT)oN AJO,
Recognized Obligation Payment Schedule(ROPS 19-20)-Summary
Filed for the July 1,2019 through June 30,2020 Period
Successor Agency: Huntington Beach
County: Orange
19-20A Total 19-20B Total
Current Period Requested Funding for Enforceable Obligations(ROPS Detail) (July-December) (January June) ROPS 19 20 Total
A Enforceable Obligations Funded as Follows(B+C+D): $ 497,723 $ $ 497,723
B Bond Proceeds
C Reserve Balance
D Other Funds 497,723 497,723
E Redevelopment Property Tax Trust Fund(RPTTF)(F+G): $ 7,460,920 _$_ 7,978,182 $ 15,439,102
F RPTTF 7,335,920 7,853,182 15,189,102
G Administrative RPTTF 125,000 125,000 250,000
H Current Period Enforceable Obligations(A+E): $ 7,968,643 $ 7,978,182 $ 15,936,825
Certification of Oversight Board Chairman:
Pursuant to Section 34177(o)of the Health and Safety code,I hereby
certify that the above is a true and accurate Recognized Obligation Name Title
Payment Schedule for the above named successor agency.
Signature Date
Huntington Reach Recognized Obligation Payment Schedule CROPS 19.10�-ROPS Detail
July 1,2019 through June 30,2020
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Huntington Beach Recognized Obligation Payment Schedule(ROPS 19-20)-Report of Cash Balances
July 1,2016 through June 30,2017
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177(1),Redevelopment Property Tax Trust Fund(RPTTF)may be listed as a source of payment on the ROPS,but only to the extent no other funding
source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form,see Cash Balance Tips Sheet.
A B C D E F G H
Fund Sources
Bond Proceeds Reserve Balance Other Funds RPTTF
Prior ROPS RPTTF
and Reserve Rent, Non-Admin
ROPS 16.17 Cash Balances Bonds issued on or Bonds issued on or Balances retained Grants, and
07101116-06/30117) before12131/10 afterol/01/11 for futureperiod(s) Interest,etc. Admin Comments
1 Beginning Available Cash Balance(Actual 07101/16)
RPTTF amount should exclude"A"period distribution amount
17,006 701,766 36,705
2 Revenue/Income(Actual 06130/17)
RPTTF amount should tie to the ROPS 16-17 total distribution from the
County Auditor-Controller
133,286 7,264,959
3 Expenditures for ROPS 16-17 Enforceable Obligations
(Actual 06/30/17)
234,628 7,240,950
4 Retention of Available Cash Balance(Actual 06/30/17)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
5 ROPS 16-17 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 16-17 PPA farm
submitted to the CAC No entry required
24,009
6 Ending Actual Available Cash Balance(06/30/17)
CtoF=(1+2-3-4),G=(1+2-3-4-5)
$ 0 $ 0 $ 17,006 $ 600,424 $ 36,705
Successor Agency
Res. No. 2019-02
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the Clerk of the Successor Agency to the
former City of Huntington Beach Redevelopment Agency, Huntington Beach,
California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by The Successor Agency to the Redevelopment Agency of the City of Huntington
Beach at a special meeting held on January 22, 2019 and that is was so adopted
by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
Clerk of The Successor Agency to
the Redevelopment Agency of the
City of Huntington Beach, California