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HomeMy WebLinkAboutAdopt Successor Agency Resolutions Nos. 2016-01 and 2016-02 Dept ID ED 16-01 Page 1 of 2 Meeting Date 1/19/2016 CITY OF HUNTINGTON BEACH REQUEST FOR SUCCESSOR AGENCY ACTION R MEETING DATE: 1/19/2016 SUBMITTED TO: Honorable Chair and Successor Agency Board Members SUBMITTED BY: Fred A Wilson, Executive Director PREPARED BY: Ken Domer, Assistant Executive Director Kellee Fritzal, Deputy Director, Business Development SUBJECT: Adopt Successor Agency Resolutions 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 Successor Agency is requested to approve the Recognized Obligation Payment Schedule (ROPS) 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 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 Successor Agency Recommended Action: A) Adopt Resolution No 2016-01, "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, 2016 - June 30, 2017 ('ROPS 16-17')," and, B) Adopt Resolution No 2016-02, "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, 2016 Through June 30, 2017 " 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 HB -189- Item 7. - I Dept ID ED 16-01 Page 2 of 2 Meeting Date 1/19/2016 Analysis As a result of the California Supreme Court's ruling on the Dissolution Act, all redevelopment T 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 BIII 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 Environmental Status Not Applicable Strategic Plan Goal Strengthen Economic and Financial Sustainability Attachment(s) 1 Resolution No 2016-01, "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, 2016 - June 30, 2017 ("ROPS 16-17)" 2 Resolution No 2016-02, "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, 2016 Through June 30, 2017" Item 7. - 2 HB -190- ATij6a.CnME,NT # 1 RESOLUTION NO 2016- 01 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, 2016—JUNE 30, 2017 ("ROPS 16-17") WHEREAS, pursuant to AB xl 26 (as amended by AB 1484, the "Dissolution Act"), the separate legal entity known as Successoi 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 Successoi Agency for each successive six-month fiscal period until the wind down and disposition of assets of the former Redevelopment Agency of the City of Huntington Beach, and The Successoi Agency staff has prepared a ROPS for the six-month fiscal period commencing on July 1, 2016 and continuing through June 30, 2017 ("ROPS 16-17") which is attached hereto as Exhibit A; and After reviewing BOPS 16-17, presented to and recommended foi approval by Successor Agency staff, and after reviewing any written and oral comments fiom the public relating thereto, the Successoi Agency Boaid desires to approve the BOPS 16-17; and All of the prerequisites with respect to the approval of this Resolution have been met NOW, THEREFORE, the Successoi Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows 1 The Successoi Agency hereby finds and deteunines that the foregoing recitals aie true and coiiect 2 , The Successor Agency hereby approves ROPS 16-17 in the foim presented to the Successor Agency and attached hereto as Exhibit A, and hereby determines that such agieements and obligations constitute "enforceable obligations" and "recognized obligations" for all purposes under the Dissolution Act 3 The Successoi Agency authorizes and directs the Successor Agency staff to (i) take all actions necessary under the Dissolution Act to post ROPS 16-17 on the Successor Agency website once approved by the Oversight Boaid to the Successoi Agency, (u) tiansinil ROPS 16-17 to the Auditor-Controller and the County Administiator of the County of Orange and to the State Controller and the State Depaitment of Finance ("DOF"), and (ni) to do any and all things and to execute and deliver any and all documents which may be necessary of advisable in older to effectuate the purposes of this Resolution. In addition, the Successor Agency authorizes and directs the Successoi Agency staff to make such non-substantive revisions to ROPS 16-17 as may be necessary to submit ROPS 16-17 in any modified form requited by DOF, and ROPS 16-17 as so modified shall thereupon constitute 16-17 as approved by the Successoi Agency pursuant to this Resolution 16-5060/130357 1 Resolution No . 2016-01 4 The Successoi Agency authorizes the Executive Duectoi, of designee, to make such non-substantive changes and amendments to ROPS 16-17 as may be approved by the Executive Dnectoi of the Successoi Agency and its legal counsel, and ROPS 16-17 as so modified shall thereupon constitute ROPS 16-17 as approved by the Successor Agency pursuant to this Resolution 5 The Successoi Agency does not intend, by adoption of this Resolution, to waive any constitutional, legal and/or equitable lights of the Successor Agency of 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, reserves all such rights of the Successor Agency and the City of Huntington Beach under law and/oi 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 19th day of January 2016 Ch REVIEWED AND APPROVED Alv - E cumVV4 Directoi APPROVED AS TO FORM. Ge eral Legal Counsel OZD LL111lo 2 16-5060/130357 4 nesolu�leii ivv . �vl�—vl EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2016 THROUGH JUNE 30, 2017 ("ROPS 16-17") [behind this page] n O 0 0 0 0 N O m 0 N m a n n n O ,A w us m rn o rn 0 N Q O N N� m � r m r u m r o N r n f9 W w N N O N N N n n O 0 r n n O ~ r V N r Q tD LI] r t0 n m co m m R E E y w c �� a r o c f0 a LL L ra � n r a o r O N a O M � C C 7 LL � L d U O F- R c U) L`, K R Q, R Z In o m C > O a 16 T V) O O O t d +� > LL N N p>° E o a °) `m o O C L M m O L w m > d o d O c LL w o N m ~ ,O m OC d R Ul Z C (n 0 0 m U y L.. O O � U OC c ; ; R r U « w a h 2 0 c c `n c U N m U c c c o c m J LL O N R > O O O N OI Q ,O C 0) N N W c N n + m O U u m O c m o+ E m N L y o R m M y o c .0 m ILLL m Q c d o o U Vo L U O 'EC ` O R m f� O O Z Q o Oa L N C O C C O -- U aa wU) w U _° C/5 c m m N C d ? 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B,E, a I a z e s` o o - o E - � 8oE8g"gB� oSoo a'Ea BoE lll Il� e 7. —��� =HB —19�— m o0 a � z E m F KC u' u 0 W — v R K �R � may'',;+�1 4 Qk 3`�.• � l R. fir Yv No 3_ pe: IR IQ E �xz ?�•lk�, a 11,01 o�'Min e a lij n r _ _ i " cs { a o e r'C , zap - .P ,� � k�'' t� `�• u < k s � Item 7. - 8 3 s s i E to i m F � o �M, e � oa f F - s�r " a � MISS CR 7az Y 8 e 11111,all-I y g e = ^ice x 8 `� xB -1 97 a Item¢ 9 7. - a a d v c � c y 2 n� > L O N T O d d N a O > o c U w o N L d L O o w E p T d d 0 C V L U m y C O d � U - Q) N y JQ c m m m lm m n rn n Lo d ID m M R >. _ = a v v co n is o Q o m j V N l0 M O m m O o m U � � rn r� o N N o o N v d o E m a ro'i d' la m @ d o E tD a V LL d ° o r !D d O C d d J w w w .a O -o a) t a) v w �, C � y ECL E 3 0 lG O ti L d c- C t= Q C O U d O O a C '- � O a o o o d o d x m y o N_ H m 07 O o O a) v o U Oa; m w w w N � L C v m a O d o a' � J C > p Q L W L a ,7 a0 O C O G V7 a O O rn w v d Ncf M + �p N m O O m n O O_ a L - m O + 20 _d m + I� O .n O a N a O p U p U a J C U a m V C 2 w O 1C0 U N U ` d m o E d O c c c �, m O c c c >, m a! tx6 O` 2' W IE C 2' ® C LL O 2'-mi uj C w o U m eh m w m a U N + O m LL O "' C m m a U y m � o L J m �p m + L J d d N O D_ C N a V y y d II N < t0 d a m N y m o Cj 'a° a daa m a = � v = E� a<n yam v> a an d u J o O a c�_ LL 14 a o d ° in a0 d o > E L c M Q°c !O an d d LL w o m d � � Q O a m d m o an d 6. Q d m d u� o O- L w U m m E W U O > d Q. , + 2 U `O > d d '. C J > O C O N a C ' Q j N E > O C O N Q C J R m 0 6 O J ,... d > > m + m Q a o _ d J E o `o 0 co E p m w -EJLL� a � oLL d � n m ui JLLQ o uj � d w a C OCI r C d C N C U C C C C G C C lN0 3al m �-> a co > a ddo d U Ja 0 w Q: ff owX dd d d aC xll� w Item 7. - 10 HB _1 98_ Successor Agency Res. No. 2016-01 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 Redevelopment Agency of the City of Huntington Beach at a special meeting held on January 19, 2016 and that is was so adopted by the following vote AYES: Posey, O'Connell, Sullivan, Katapodis, Hardy, Delgleize, Peterson NOES: None ABSENT: None ABSTAIN: None Clerk f The Success r Agency to the Redevelopment Agency of the City of Huntington Beach, California ATTACHMENT #2 RESOLUTION NO 2016- 0 2 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, 2016 THROUGH JUNE 30, 2017 WHEREAS, California Health and Safety Code section 341770) iequiies that the Successor Agency to the Redevelopment Agency of the City of Huntington Beach ("Successor Agency") prepare an administi ative budget foi each six month fiscal pet iod; and A draft administrative budget foi the fiscal period of July 1, 2016 through June 30, 2017 ("Administi ative Budget") is attached het eto 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 foi expenses from the administrative budget that ate to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund for each six month 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 heleby resolve as follows 1. The Successor Agency hereby finds and determines that the foregoing recitals are true and coirecf 2 The Administrative Budget attached hereto as Exhibit A is hereby approved 3 The Successor Agency staff is drlected to (i) provide the required cost estimates for expenses to the County Auditor-Controller, and (u) to do any and all things and to execute and deliver any and all documents which may be necessary of 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, therefole, reselves all such rights of the Successor Agency and the City of Huntington Beach under law and/or in equity 16-5060/130362 1 Resolution No . 20lb-02 PASSED AND ADOPTED by the Successoi Agency to the Redevelopment Agency of the City of Huntington Beach at a iegulai meeting thereof held on the 19th day of January , 2016. fs�1i -A a..-� 4 Chairlkwn REVIEWED AND APPROVED Ex(gutm Phector APPROVED AS TO FORM Gen al Legal Counsel O\w � `'j\`S,o 16-5060/130362 2 resolution No . LUlb-UL EXHIBIT A ADMINISTRATIVE BUDGET FOR THE PERIOD JULY 1, 2016 THROUGH JUNE 30, 2017 [behind this Page] 16-5060/130362 3 Successor Agency Administrative Budget Department Budget Summary Other Funds by Object Account OTHER FUNDS N D Ex enditure.flb¢bet Account ROPS 16-17 Budget RORF Administration(350) PERSONAL SERVICES Salaries/Benefits-Permanent 250,000 PERSONAL SERVICES 260,000 OPERATING EXPENSES Legal Services - Other Professional Services/Operating - OPERATING EXPENSES Total 250,000 Revenue Summary RODS 16=17 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% or minimum o $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 other professional services expenses associated with the dissolution and administration of the Successor Agency. Item 7. - 14 HB -2o2- Successor Agency Res. No. 2016-02 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 Redevelopment Agency of the City of Huntington Beach at a special meeting held on January 19, 2016 and that is was so adopted by the following vote: AYES: Posey, O'Connell, Sullivan, Katapodis, Hardy, Delgleize, Peterson NOES: None ABSENT: None ABSTAIN: None Clerk VThe Success Agency to the Redevelopment Agency of the City of Huntington Beach, California