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HomeMy WebLinkAboutOversight Board - 2018-01 AGENDA REPORT Oversight Board of the Huntington Beach Successor Agency to the Redevelopment Agency MEETING DATE: January 30, 2018 SUBJECT/ACTION: Adopt Oversight Board Resolution Nos. 2018-01 and 2018-02 approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Huntington Beach Successor Agency for the period of July 1, 2018 through June 30, 2019, in accordance with Health and Safety Code Section 34177 and related actions STATEMENT OF ISSUE: The Oversight Board is requested to approve the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the period of July 1, 2018, through June 30, 2019. An approved ROPS must be submitted to the Department of Finance (DOF) by February 1, 2018. This is the second year of the Agency submitting an annual ROPS, due to changes in legislation. RECOMMENDED ACTION: Motion to: A) Adopt Resolution No. 2018-01, "A Resolution of the Oversight Board 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, 2018 Through June 30, 2019 ("ROPS 18-19");" and, B) Adopt Resolution No. 2018 -02, "A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Approving the Successor Agency Administrative Budget for the Period of July 1, 2018 through June 30, 2019." BACKGROUND: 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, 2018, through June 30, 2019, 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 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 and the Orange County Auditor- Controller by February 1. Finance will make its determination by April 14, 2017, and each April 15 thereafter. Therefore, the ROPS shall not be effective until approved by the State DOF. The Successor Agency and City is 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 three separate occasions totaling $71 million. The Administrative Budget for the July 1, 2018, through June 30, 2019, period reflects a total of $250,000, which represents three percent (3%) of the projected property tax receipts during this period. ATTACHMENT(S): 1. Resolution No. 2018-01, "A Resolution of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Approving the Recognized Obligation Payment Schedule for the Period July 1 2018 Through June 30, 2019 ("ROPS 18- 19")" 2. Resolution No. 2018-02, "A Resolution of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Approving the Successor Agency Administrative Budget for the Period July 1, 2018 Through June 30, 2019" RESOLUTION NO. 2018-01 A RESOLUTION OF THE OVERSIGHT BOARD 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, 2018 THROUGH JUNE 30, 2019 ("ROPS 18-19") 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 fiscal year 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 fiscal year commencing on July 1, 2018and continuing through June 30, 2019 ("ROPS 18-19") which is attached hereto as Exhibit A; and Under the Dissolution Act, ROPS 17-18 must be approved by the Successor Agency's oversight board ("Oversight Board"); and After reviewing ROPS 18-19 presented to and recommended for approval to the Oversight Board by Successor Agency staff, and after reviewing any written and oral comments from the public relating thereto, the Oversight Board desires to approve the ROPS 18-19; and All of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The Oversight Board hereby finds and determines that the foregoing recitals are true and correct. 2. The Oversight Board hereby approves ROPS 18-19 in the form presented to the Oversight Board 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 Oversight Board authorizes and directs the Successor Agency staff to: (i) take all actions necessary under the Dissolution Act to post 18-19 on the Successor Agency website; (ii) transmit ROPS 18-19 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 Oversight Board authorizes and directs the Successor Agency staff to make such non-substantive revisions 1 18-6223/172554/mv OVERSIGHT BOARD RESOLUTION 2018-01 to ROPS 18-19 as may be necessary to submit ROPS 18-19 in any modified form required by DOF, and ROPS 18-19 as so modified shall thereupon constitute ROPS 18-19 as approved by the Oversight Board pursuant to this Resolution. 4. The Oversight Board does not intend, by adoption of this Resolution, to waive any constitutional, legal and/or equitable rights of the Oversight Board, 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 Oversight Board, the Successor Agency and the City of Huntington Beach under law and/or in equity. PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the G` - day of`ua&-," 018. Chairperson— REVIEWED AND APPROVED: E utive hirector APPROVED TO FORM: neral Legal Counsel 2 18-6223/172554/mv OVERSIGHT BOARD RESOLUTION 2018-01 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1,2018 THROUGH DUNE 30,2019 ("ROPS 18-19") [behind this page] Recognized Obligation Payment Schedule(ROPS 18-19)-Summary Filed for the July 1.2018 through June 30.2019 Period Successor Agency: Huntington Beach County: Orange 18.19A Total 18-19B Total Current Period Requested Funding for Enforceable Obligations CROPS Detail) (July-December) (January-June) ROPS 18-19 Total A Enforceable Obligations Funded as Follows(B+C*D): S 3,750 $ 3.750 $ 7,500 B Bond Proceeds _ C Reserve Balance - _ D Other Funds 3.750 3,750 7.500 E Radsyslo nt Property Tax Trust Fund(RPTTF)(F+G): $ 6.364.938 S 9,006,728 $ 15,371,688 F RPTTF 6,239.938 8,881,728 15.121,666 G Administrative RPTTF 125,000 125.000 250,000 H Current Period Enforceable Obligations(A+EI: $ 6,368,688 S 9,010,478 $ 15 379 106 Certification of Oversight Board Chairman' Pursuam to Section M177(o)of the Health and Safety code.I hereby carbFj that the above is a true and accurate Recognized Obligabon Name Title Payment Schedule for the above named successor agency. 1st Signature Date seewseswweaaeesesaweae �fl�i■7i�i���^"`� ii�iii�iii�����������lii� AMEN seesse©w` wewaasasaewaws ■ili�■I �I(�fll�� riiYfiri���li��fiili���lii��l�ii ttiYrYliur�r_�ri�lYr®-^'--- • . -. . r.rr::�r�il®Y�i�Y�iB� �����lfii�l�il���i�_ M�brbnMM MYmrW ONyben HlrnILMF IFat IM.I-IpM dYY Ju1/I.MI.YwbJiwY b,]Ob Fb1yY WY. xtrw Ytrtr rule aaxRr rase sWro. ... . ..0 xrF Fx..�.aw >n .w cwa�r.ur I w nx Fxn.F.ra r wx..FOYrm..;ro tCW!a4rYcy.rrr I YM.tiwhYYrn.ro Y�.FF.F..rr F+.r Yx-r r.Yxe.+ .rr er.i4.F.ro..xF� ��aa cne...n e..a.�xn....Ya.... .x..w �.rs.n rr..Y.:r"�rrrtir � �1 MM1 ax^P wu �THY w Y x�aCxixYnw x Y�,Yx.rww+T Yw�dny �r Mpv FYwwwx �i.Kwb 4n4m e Y MnMi .I.Frtnr � U.WxI.FIFwW Y I �1 MAY �W Yxenp�� N••Ygen M•M I4m/•W OtlyVen e•l�..e u•IRMf aV1I�-ROPF0.1tll 1W\•.»a•wwgn.wti Ip.»N n Mnwe•M WNI•DaYv RIL1M FutllpMtN 7-7-77 FUM burro �oeeuM��n am•e+'b�n yoyIDx W Ms•• Iww•• MaF 11 YweID»�l�n 1 , � 11 w�ngW � �� I xl aw6ID�a�FW a ra w gym- e n b+� su xe++awe•xL nnm•al , R�nwwMY n xue4n eyv FMo•Y•ReM�w i••aID4 w.w•aw.we..•nwe wtiu x I • unrb Iw.rwxwY�w�l �M•�+e•mrianwnW awe �1 xwnY __ VwCY YetilYeeww.�P•I•e Fw��+M•W pMwM YFSFY••wID•ID•w a aARM MM w carry � � �n�Nap ��I.InvM1 M n ��1.MwM1 Mnw Wmnuo�ww • ,% whns•pl•• nu i•^•W x a rID �IMM ww•.wu JM•wVLw bW �o YSR•wY�we � eP•sysnn Huntington Beach Recognized Obligation Payment Schedule(ROPS 18-19)-Report of Cash Balances July 1,2015 through June 30,2016 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177(1),Redevelopment Property Tax Trost Fund(RPTTF)may be listed as a source of payment on the ROPS,but only to the extent m other towing source is available or when psymern from property tax revenues is required by an enforceable obli alion. For Ups on It to complete the Reporll of Cash Balances Form,see I INSERT URL LINK TO CASH BALANCE TIPS SHEET A B C D E F O H I Fund Sources Bond Procaa is Reserve Balance Other RPTTF Poor RODS Feriotl balances Prior ROPS and RPTTF Bonds issued on Bonds issued on ODR RPTTF distributed as Rent. Non-Abmm Cash Balance Information for RODS 15-16 Actuals or before or after balances reserve for future grants. and 07101115-06130116 12MI10 0IM1/11 retained peri interest,etc. Admin Comments 1 Beginning Available Cash Balance(Actual 07/01/151 4,346,176 300,000 53.641 2 Rawnuenncome(Actual 06130/16) RPTTF amounts should be to the ROPS 15-16 total distribution from the County Auditor-Controller during June 2015 and January 2016. 976.766 8,030.835 3 Expenditures for ROPS 15.16 Enforceable Obligations(Actual 06/30/16) 4,329,170 575,000 8,047,771 4 Retention of Available Cash Balance(Actual 00130116) RPTTF amount retained should only include the amounts distributed as reserve for future penod(s) 5 ROPS 15-16 RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance(06130116) C to G=(1+2-3-4),H-(1+2-3-4-5) $ - 3 - 3 - 6 17,006 1 701,766 5 36,705 Oversight Board Res. No. 2018-01 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency, Huntington Beach; California DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Huntington Beach Redevelopment Agency at a meeting held on January 30, 2018 and that it was so adopted by the following vote: AYES: Board Members: *Bone, A. Dunn, Peterson, Posey, Fritzal NOES: Board Members: None ABSENT: Board Members: L. Dunn, Delgado ABSTAIN: Board Members: None *Bone requested that the record show he recused himself from voting on line item nos. 2 and 75 of Exhibit A Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California RESOLUTION NO. 2018-02 A RESOLUTION OF THE OVERSIGHT BOARD 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, 2018 THOUGH JUNE 30, 2019 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 the fiscal year; and A draft administrative budget for the fiscal period of July 1, 2018 through June 30, 2019 ("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 the fiscal year; and All of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The Oversight Board 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 Oversight Board does not intend, by adoption of this Resolution, to waive any constitutional, legal and/or equitable rights of the Oversight Board, 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 Oversight Board, the Successor Agency and the City of Huntington Beach under law and/or in equity. 18-6223/172556/mv 1 OVERSIGHT BOARD RESOLUTION 2018-02 PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the q ,* 4'4- day of U a-�-u , 2 8. Chairperson REVIEWED AND APPROVED: &A 1h, Exe v rector APPROVED AS T ORM: Gene Legal Counsel 18-6223/172556/mv 2 OVERSIGHT BOARD RESOLUTION 2018-02 EXHIBIT A ADMINISTRATIVE BUDGET FOR THE PERIOD JULY 1, 2018 THROUGH JUNE 30, 2019 [behind this page] 18-6223/172556/mv 3 Successor Agency Administrative Budget Department Budget Summary Other Funds by Object Account OTHER FUNDS Expenditure Object Account ROPS 18-19 Budget RORF Administration(360) PERSONAL SERVICES Salaries/Benefits-Permanent 250,000 PERSONAL SERVICES 250.000 OPERATING EXPENSES Legal Services - Other Professional Services/Operating - OPERATING EXPENSES Total 250,000 Revenue Summary ROPS 18-19 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 distributer) 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 b Other Funds, pursuant to State rules. Administrative expenses include: personnel costs, legal, and other professional services expenses associated with the dissolution and adminlstratlon of the Successor Agency. Oversight Board Res. No. 2018-02 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency, Huntington Beach, California DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Huntington Beach Redevelopment Agency at a meeting held on January 30, 2018 and that it was so adopted by the following vote: AYES: Board Members: Bone, A. Dunn, Peterson, Posey, Fritzal NOES: Board Members: None ABSENT: Board Members: L. Dunn, Delgado ABSTAIN: Board Members: None 4�46 �&4wd"'&j Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California