HomeMy WebLinkAboutSuccessor Agency - 2012-02 SUCCESSOR AGENCY
RESOLUTION NO. 2012-02
A RESOLUTION OF THE HUNTINGTON BEACH REDEVELOPMENT
AGENCY SUCCESSOR AGENCY APPROVING THE ADMINISTRATIVE
BUDGET AND RELATED ACTIONS
The Huntington Beach Redevelopment Agency ("Redevelopment Agency") was a
redevelopment agency in the City of Huntington Beach ("City"), duly created pursuant to the
California Community Redevelopment Law (Part I (commencing with Section 33000) of Division
24 of the California Health and Safety Code)("Redevelopment Law"); and
The City Council has adopted redevelopment plans for the City's redevelopment project
areas, and from time to time, the City Council has amended such redevelopment plans; and
The Redevelopment Agency was responsible for the administration of redevelopment
activities within the City; and
AB x 126("AB 26") and AB x l 27 ("AB 27")were signed by the Governor of California on
June 28, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8
(commencing with Section 34161) and Part 1.85 (commencing with Section 34170) (`-Part 1.85")to
Division 24 of the California Health and Safety Code("Health and Safety Code"); and
The California Redevelopment Association and League of California Cities filed a lawsuit in
the Supreme Court of California(California Redevelopment Association, et al. v.Matosantos, et al.,
Case No, S 194861) alleging that AB 26 and AB 27 were unconstitutional; and
On December 29, 2011, the Supreme Court issued its opinion in the Matosantos case largely
upholding as constitutional AB 26, invalidating as unconstitutional AB 27, and holding that AB 26
may be severed from AB 27 and enforced independently; and
The Supreme Court generally reformed and revised the effective dates and deadlines for
performance of obligations under Health and Safety Code Part 1.85 of AB 26 arising before May 1,
2012 to take effect four months later, while leaving the effective dates or deadlines for performance
of obligations under Health and Safety Code Part 1.8 of AB 26 unchanged; and
As a result of the Supreme Court's decision, and on February 1, 2012, all California
redevelopment agencies were dissolved, successor agencies were established as successor agencies
to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and
successor agencies are tasked with paying, performing and enforcing the enforceable obligations of
the former redevelopment agencies and winding down the affairs of the former redevelopment
agencies; and
The City Council of the City adopted Resolution No. 2012-01 on January 9, 2012, pursuant
to Part 1.85, electing for the City to serve as the successor agency to the Redevelopment Agency
upon the dissolution of the Redevelopment Agency under AB 26 ("Successor Agency"); and
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SUCCESSOR AGENCY Resolution No. 2012-02
As part of the FY 2012-2013 State budget package, on June 27, 2012, the Legislature passed
and the Governor signed Assembly Bill No. 1484 ("AB 1484", Chapter 26, Statutes 2012).
Although the primary purpose of AB 1484 is to make technical and substantive amendments to AB
26 based on issues that have arisen in the implementation of AB 26, AB 1484 imposes additional
statutory provisions relating to the activities and obligations of successor agencies and to the wind
down process of former redevelopment agencies; and
Health and Safety Code Section 34179 of AB 26 as amended by AB 1484 establishes a
seven (7) member local entity with respect to each successor agency and such entity is titled the
"oversight board." The oversight board has been established for the Successor Agency (hereinafter
referred to as the "Oversight Board") and all seven (7) members have been appointed to the
Oversight Board pursuant to Section 34179. The duties and responsibilities of the Oversight Board
are set forth in Health and Safety Code Sections 34179 through 34181 of AB 26 as amended by AB
1484; and
Section 341770) of AB 26 as amended by AB 1484 requires the Successor Agency to
prepare an administrative budget for each six-month fiscal period and submit the administrative
budget to the Oversight Board for approval. The administrative budget shall include all of the
following: (i) estimated amounts for Successor Agency administrative costs for the upcoming six-
month fiscal period; (ii) proposed sources of payment for Successor Agency administrative costs;
and (iii) proposals for arrangements for administrative and operations services provided by the City
or other entity; and
Section 34177(k) of AB 26 as amended by AB 1484 requires the Successor Agency to
provide to the Orange County Auditor-Controller for each six-month fiscal period the
administrative cost estimates from its approved administrative budget that are to be paid from
property tax revenues (i.e. former tax increment revenues) deposited in the County's
Redevelopment Property Tax Trust Fund established for the Successor Agency; and
Staff of the Successor Agency seeks the Successor Agency's approval of the administrative
budget for the period of January 1, 2013 through June 30, 2013 (``Administrative Budget"), in the
form attached to this Resolution as Exhibit "A", and the Successor Agency's authorization to
submit the approved Administrative Budget to the Oversight Board for its approval and to forward
the information required by Section 34177(k)to the Orange County Auditor-Controller; and
This Resolution has been reviewed with respect to applicability of the California
Environmental Quality Act ('CEQA'), the State CEQA Guidelines (California Code of
Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's
environmental guidelines, and
This Resolution is not a "project" for purposes of CEQA, as that term is defined by
Guidelines section 15378, because this Resolution is an organizational or administrative activity
that will not result in a direct or indirect physical change in the environment, per section
15378(b)(5) of the Guidelines; and
All of the prerequisites with respect to the approval of this Resolution have been met.
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SUCCESSOR AGENCY Resolution No. 2012-02
NOW, THEREFORE, the Huntington Beach Redevelopment Agency Successor
Agency does hereby resolve as follows:
1. The foregoing recitals are true and correct and are a substantive part of this
Resolution.
2. The adoption of this Resolution is not intended to and shall not constitute a waiver
by the Successor Agency of any rights the Successor Agency may have to challenge the
effectiveness and/or legality of all or any portion of AB 26 or AB 1484 through administrative or
judicial proceedings.
3. The Successor Agency's Administrative Budget for the period of January 1, 2013
through June 30, 2013, which is attached hereto as Exhibit "A", is approved and adopted.
4. The Executive Director, or designee, is hereby authorized and directed to: (i) submit
the approved Administrative Budget to the Oversight Board for its review and approval; (ii) submit
to the Orange County Auditor-Controller the administrative cost estimates from the Administrative
Budget that are to be paid from property tax revenues deposited in the County's Redevelopment
Property Tax Trust Fund established for the Successor Agency; and (iii) take such other actions and
execute such other documents as are necessary to effectuate the intent of this Resolution on behalf
of the Successor Agency.
5. The Successor Agency determines that this Resolution is not a"project" for purposes
of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an
organizational or administrative activity that will not result in a direct or indirect physical change in
the environment, per section 15378(b)(5) of the Guidelines.
6. This Resolution shall take effect upon the date of its adoption.
PASSED AND ADOPTED by the Huntington Beach Redevelopment Agency Successor
Agency at a regular meeting thereof held on the 2 0 t h day of August , 2012
Chairman
REVIE D APPROVED: E AND APPROVED:
Exe iv irector Deputy.Executive Director
APPROVED AS TO FORM:
rtz Agency Counsel
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SUCCESSOR AGENCY Resolution No. 2012-02
EXHIBIT"A"
HUNTINGTON BEACH REDEVELOPMENT AGENCY SUCCESSOR AGENCY
.ADMINISTRATIVE BUDGET
FOR THE PERIOD OF JANUARY 1, 2013 THOUGH JUNE 30, 2013
(See Attachment)
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All
R, Successor Agency
- Administrative Budget
T t
Department Budget Summary
Other Funds`by.Object Account,:
OTHEWFUNDS
gn
M��- r
fi r'
1Change Fe0intuat _. A xRevs Pro" Pnorl(ear
t IcF, Adrnintstration tss01;
PERSONAL SERVICES:. ,
Salaries-Permanent 119,415 100:00%0
Salaries-Temporary
Benefits 45,472 100:00%
5ON �AL�SERV ES s a _' 100;00%
,OPERATING EXPENSES
Utilities
Equipment and Supplies 6,000 100.00%
Repairs and Maintenance 2,500 v< 100:00%a
,nferences and Training 5,000 100:00%
Professional Services 179,114 10060%o
Administrative Allowance(ROPS 1) 250,000 10000%
Administrative Allowance ROPS ll 83,708 83,708 100P00%
;OPE: 5 .v IEXK SES : ,: <. "'sv .. = a ',:.'. .3 08' $ .0$i 192 814 100,
�,u
Total •- ;_. : -.n - 333,708 s 83;708" 357,500. <- 100`.009/d
Significant Changes
Pursuant to Assembly Bill x1 26,the Successor Agency receives 3%of property tax receipts, or$250,000,whichever is greater, on a semi-annual basis for administration and the
"winding down"of the former Redevelopment Agency. In addition,the Successor Agency receives a distribution of property tax based on the Recognized Obligation Payment Schedule
(ROPS)on a semi-annual basis. For FY 2011/2012 the Administrative Allowance approved by the Department of Finance totaled$250,000. For the six-month period covering July 1
to December 31,2012,the Administrative Allowance approved by the Department of Finance totaled$167,416.
Successor Agency
Res. No. 2012-02
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH
I, JOAN L. FLYNN 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 Former City of Huntington Beach Redevelopment
Agency at a meeting held on August 20, 2012 and that is was so adopted by the
following vote:
AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
6=41 dlj00�
Cie�, of the Successor A ncy to
the Former City of Huntington
Beach Redevelopment Agency,
Huntington Beach, California