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Council/Agency Meeting Held:_ OS- d1-al
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied W) - Jerk s/ ignature
Council Meeting Date: May 7, 2001 Department ID Number: ED-01-20
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION o Z
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SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGEN-Y
MEMBERS — aC-
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SUBMITTED BY: RAY SILVER, Executive Director arm o =
PREPARED BY: DAVID C. BIGGS, Deputy Executive Director ,
GAIL HUTTON, Agency Counse ---
SUBJECT: Approve Transfer of Funds — Redevelopment Agency
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The Redevelopment Agency maintains both its annual operating
budget, and the Agency fund balance. Funds are budgeted annually from the
Redevelopment Agency into an operating account for legal services. This budgeted amount
is administered by the City Attorney Office. Higher than expected legal and litigation costs in
the current fiscal year have necessitated a transfer from the redevelopment fund balance into
the operating account to cover these legal fees for the current fiscal year.
Fundinq Source: Unappropriated Redevelopment Agency Capital Projects Fund Balance in
the amount of $200,000.
Recommended Action: Motion to:
1. Approve the appropriation of $200,000 from the Redevelopment Agency fund
balance into Legal Services operating account number 30515101.
Alternative Action(s): Do not approve the transfer of funds.
Analysis: In fiscal year 2000/2001, the Redevelopment Agency budgeted $400,000 in
account 30515101 for anticipated legal costs. These funds are managed and administered
by the City Attorney Office, and the $400,000 figure was consistent with estimates
determined prior to the final 2000/2001 budget compilation and approval. However,
complicated legal transaction, litigation, and unexpected costs have shown this figure to be
inadequate to cover current year costs.
REQUES-i FOR REDEVELOPMENT AGtNCY ACTION
MEETING DATE: May 7, 2001 DEPARTMENT ID NUMBER: ED-01-20
Legal costs incurred fiscal year to date for all projects and cases total over $403,000. Most
notably, the case of Mulligan v. Redevelopment Agency of the City of Huntington Beach
alone has generated outside attorney and associated costs to date of $332,987. With the
Redevelopment Agency's recent decision to appeal the verdict in that case, it is certain
additional funds will be required to proceed.
Redevelopment Agency staff is working closely with the Office of the City Attorney and
outside counsel on several high profile projects which are anticipated to generate revenue
streams for the city. California Redevelopment law is complicated and exacting, and
thorough preparatory groundwork can provide the best benefit for the community. Some of
the current Redevelopment projects underway this fiscal year, and expected legal -related
processes, are listed below
Proiect Status
Hyatt Grand Resort
CIM
Mulligan
Southeast Area Plan
Adoption
31 Acres — Pacific City
■ Escrow closing
■ CFD bond process
■ Prevailing wage issue
■ DDA Amendment
■ Litigation
■ Appeal process
■ Project area adoption process
■ Proforma evaluation
■ Negotiations with developer
After extended deliberation and analysis, it is expected the transfer of an additional $200,000
into the legal services operating account will cover foreseeable expenses through the end of
the fiscal year. Recommendation is to approve this transfer from the Redevelopment Agency
fund balance.
Environmental Status: Not applicable.
Attachment(s):
RCA Author: LBrunsonx5529
RDATransfer.doc -2- 4/29/01 11:16 AM
riscai impact otatement
ATTACHMENT #1
•�, CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: Clay Martin, Director of Administrative Services
Subject: FIS 2001-41 Approve Transfer of Funds — Redevelopment
Agency
Date: April 30, 2001
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for Approve Transfer of Funds — Redevelopment
Agency."
If the City Council approves this request (total appropriation
$200,000), the estimated unreserved Redevelopment Agency Capital
Projects fund balance at September 30, 2001 will be reduced to
$2,133, 0,DO--)
Clay Ma V , N�-�
Direc of Administrative Services
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
Approve Transfer of Funds - Redevelopment Agency
COUNCIL MEETING DATE:
I May 7, 2001
- ..... RCA ATTACHMENTS
,STATUS °°
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney)
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attome
Not Applicable
Financial Impact Statement Unbud et, over $5,000
Attached
Bonds (If applicable)
Not Applicable
Staff Report If applicable)
Not Applicable
Commission, Board or Committee Report If applicable
Not Applicable
Findings/Conditions for Approval and/or Denial
Not Applicable
• -EXPLANATION FOR MISSING ATTACHMENTS
—:-:REVIEWED
RETURNED
FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
o
City Clerk
RCA Author: LBrunson