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HomeMy WebLinkAboutAdopt Oversight Board Resolution Nos. 2016-01 and 2016-02 ap AGENDA REPORT Oversight Board of the Huntington Beach Successor Agency to the Redevelopment Agency MEETING DATE: January 27, 2016 SUBJECT/ACTION: Adopt Oversight Board Resolution Nos 2016-01 and 2016-02 approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Huntington Beach Successor Agency for the period of July 1, 2016 through June 30, 2017, 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 (BOPS) and Administrative Budget for the period of July 1, 2016, through June 30, 2017 An approved ROPS must be submitted to the Department of Finance (DOF) by February 1, 2016 Due to recent changes in legislation, the Successor Agency is submitting an annual ROPS in lieu of the previous six-month ROPS period RECOMMENDED ACTION: Motion to A) Adopt Resolution No 2016-01, "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, 2016- June 30, 2017 ("ROPS 16-17")," and, B) Adopt Resolution No 2016-02, "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, 2016 through June 30, 2017 " 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 January 1, 2016, through June 30, 2016, 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 Recently, 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 2017 and changing the bi-annual ROPS to an annual submittal Pursuant to HSC section 34177(o) (1), commencing with the ROPS covering the period from July 1, 2016, to June 30, 2017, and thereafter, agencies shall submit an Oversight Board-approved annual ROPS to DOF and the Orange County Auditor- Controller by February 1, 2016, and each February 1 thereafter Finance will make its determination by April 15, 2016, and each April 15 thereafter Therefore, the ROPS shall not be effective until approved by the State DOF The Administrative Budget for the July 1, 2016, through June 30, 2017, 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 2016- 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 2016—June 30, 2017 (`ROPS 16-17')" 2 Resolution No 2016-02, "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 —June 30, 2017" RESOLUTION NO 2016- 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, 2016 THROUGH JUNE 30, 2017 ("ROPS 16-17") WHEREAS, puisuant to AB x1 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 piepaie "Recognized Obligation Payment Schedules" ("ROPS") that enumerate the enforceable obligations and expenses of the Successoi Agency for each successive six-month fiscal period until the wind down and disposition of assets of the formes Redevelopment Agency of the City of Huntington Beach, and The Successor Agency staff has pi epai ed a ROPS for the six-month fiscal pei rod commencing on July 1, 2016 and continuing through June 30, 2017 ("ROPS 16-17") which is attached hereto as Exhibit A, and Undei the Dissolution Act, ROPS 16-17 must be approved by the Successor Agency's oversight board ("Oversight Board"); and Aftei reviewing ROPS 16-17 presented to and iecommended foi approval to the Oversight Board by Successoi Agency staff, and after reviewing any written and oral comments from the public ielatmg thereto, the Oversight Board desires to approve the ROPS 16-17, and All of the pierequisrtes 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 ale ti Lie and coil ect 2 The Oversight Board hereby approves ROPS 16-17 in the form presented to the Oversight Board and attached hereto as Exhibit A, and hereby deter ernes 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 16-17 on the Successor Agency website, (6) transmit ROPS 16-17 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 (rii) 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 16-5060/130371 Oversight Board Reso . 1Ulb-U1 to ROPS 16-17 as may be necessary to submit ROPS 16-17 in any modified form iequired by DOF, and ROPS 16-17 as so modified shall thereupon constitute ROPS 16-17 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 lights of the Oveisight Board, the Successoi Agency or the City of Huntington Beach under law and/oi in equity by virtue of the adoption of this Resolution and actions approved and taken pursuant to this Resolution and, therefore, ieseives all such iights of the Oversight Board, the Successoi Agency and the City of Huntington Beach under law and/oi in equity PASSED AND ADOPTED by the Oveisight Board of the Successoi Agency to the Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the 27th day of January , 2016 Cl iipersx�—�* REVIEWED ND APPROVED E, u ive biiectoi APPROVED AS TO FORA Gen al Legal Counsel Dkz 10WP 2 13-3914/101076 yr - --c'-- ---- - ___ - _ _ EXHIBIT A 'RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2016 THROUGH JUNE 30, 2017 ("ROPS 16-17") [behind this page] (/) O ama f00. 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No. 2016-01 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, 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 27, 2016 and that it was so adopted by the following vote AYES: Board Members: *Bone, Fritzal, Hardy, Katapodis NOES: Board Members: None ABSENT: Board Members: Delgado, A Dunn, L Dunn ABSTAIN: Board Members: None *Bone requested that the record show he recused himself from voting on line item nos 48, 75, 76, 77, and 78 of Exhibit A vl Secr ary of the Huntir9ton Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California RESOLUTION NO 2016- 02 A RESOLUTION OF THE OVERSIGHT BOARD OF TIIE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR TIIE PERIOD JULY 1, 2016 THOUGH JUNE 30, 2017 WHEREAS, California Health and Safety Code section 341770) requites that the Successor Agency to the Redevelopment Agency of the City of Huntington Beach ("Successor Agency") piepaie an administrative budget for each six month fiscal period, and A draft administrative budget for the fiscal period of July 1, 2016 through June 30, 2017 ("Administrative Budget") is attached her eto as Exhibit A, and Califoirua Health and Safety Code section 34177(k) requires the Successor Agency to provide to the County Auditor-Controllei administrative cost estimates for expenses from the administrative budget that are to be paid from property tax revenues deposited to the Redevelopment Property Tax Tiust Fund for each six month fiscal period; and All of the pieiequisites with respect to the approval of this Resolution have been met NOW, THEREFORE, the Oversight Board of the Successoi Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows I The Oversight Board hereby finds and deteimines that the foregoing recitals ate true and cot r ect 2 The Administrative Budget attached hereto as Exhibit A is hereby approved 3 The Successor Agency staff is directed to (i) provide the requited cost estimates for expenses, to the County Auditor-Controller, and (rr) to do any and all things and to execute and deliver any and all documents which may be necessary of advisable in oidei 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. 16-5060/130365 I uversignL DU&IU ACC-U - GV1V-v PASSED AND ADOPTED by the Oversight Boaid of the Successoi Agency to the Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the 27th day of January 2016 Ch rperso REVIEWE AND APPROVED Ex utive bijectoi APPROVED AS TO FORM Gei al Legal Counsel _r)v&D t �'illco 16-5060/130365 2 Oversight Board Reso . 2016-02 EXHIBIT A ADMINISTRATIVE BUDGET FOR TILE PERIOD JULY 1, 2016 THROUGH JUNE 30, 2017' [behind this page] 16-5060/130365 3 Successor Agency Administrative Budget Department Budget Surnmary Other Funds by Object Account OTHER FUNDS Expenditure Object Account ROPS 16-17 Budget RORF Administration(35C) PERSONAL SERVliCES Salaries/Benefits-Permanent 250,033 PERSONAL SERVICES 250,000 OPERATING EXPENSES Legal Ser-,,ices - Other Professional Services/Operating OPERATING EXPENSES - Total 250,000 Revenue Summary BOPS 16-17 Budget Administrative Allowance 250.000 Other Funds ITotal 250,000 Significant Changes Pursuant to AB x,I 26 and AS 1484 t,e Successor Agency receives RPTTF: funding from the COLI.I,\,Auditor- Controller to pay Enforceable Qnkqazio-is The Successor Agency also receives a 3--, or minimum 0: $250,000 for admimstration of the wInd.ng down of Vhe former Redevelopment Agency per flscai year. Administratve costs associated with the `wmd down" and dissolution of the Redevelopment Age icy l exceed the administrative cost allowance will be funded by Other _;Inds, DLITCUaPt TLO State rules. Administrative expenses include. personnel costs legal, and other or-cfessioral services expenses associated with the dissolution and administration of the S,-,ccess3,Ac-=n-,\,, Oversight Board Res. No. 2016-02 STATE OF CALIFORNIA COUNTY OF ORANGE ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, Secretary of the Hlun'Pngto,-� Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment agency, Huntington Beach, Cafforni�a DO HEREBY CERTIFY that the foregoing resoG�utl��on was du y adopted by the Hunfingto,-, Beach Oversight Board cf the Successor Agency oftne Former City of Huntington Bead-: Huntington Beach Redevelopmert- Agency at a meeting held on January 27., 2016 and that A was so adopted by t-e following vote: AYES: Board Members: Bone, Fritza;. Hardy, Kata,pod!s NOES: Board Members: No,-.e ABSENT: Board Members- Deigadc, A. Du-r,,. L. Dunn ABSTAIN: Board Members: None V Secrviary Of the Hunt�nglrcn Beach Oversight Board of the Successor Agency of the Former C'lt\/ of H L untington Beagle Redevelo;Drnert Agency Hu-trgtor Beach, Ca&ifornia