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HomeMy WebLinkAboutAdopt Successor Agency Resolutions Nos. 2018-01 and 2018-02 Dept. ID ED 18-02 Page 1 of 2 Meeting Dante: 1/16/2018 7­0 i _ ? CITY OF HUNTINGTON BEACH REQUEST FOR. SUCCESSOR AGENCY ACTION MEETING DATE: 1/16/2018 SUBMITTED TO: Honorable Chair and Successor Agency Board Members SUBMITTED BY: Fred A. Wilson, Executive Director PREPARED BY: Lori Ann Farrell Harrison, Assistant City Manager SUBJECT: Adopt Successor Agency Resolutions 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 Successor Agency 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 that 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. The ROPS request $15.3 million in funds to support existing enforceable obligations. Recommended Action: A) Adopt Resolution No. 2018-01, "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, 2018, through June 30, 2019;" and, B) Adopt Resolution No. 2018-02, "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, 2018 - June 30, 2019 (`BOPS 18-19')." 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. Item 8. - I KB -62- Dept. ID ED 18-02 Page 2 of 2 Meeting Date: 1/16/2018 Analysis: 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. Environmental Status: Not Applicable Strategic Plan Goal: Strengthen Economic and Financial Sustainability Attachment(s): 1. Resolution No. 2018-01, "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, 2018, Through June 30, 2019" 2. Resolution No. 2018-02, "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, 2018 - June 30, 2019 ('ROPS 18-19')" FIB -63)_ Itcm 8. - 2 RESOLUTION NO. 2018-01 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, 2018 THROUGH 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 each annual fiscal period; 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 each annual 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 hereby resolve as follows: 1. The Successor Agency 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 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, therefore, reserves all such rights of the Successor Agency and the City of Huntington Beach under law and/or in equity. 18-6205/171963/mv 1 RESOLUTION NO. 2018-01 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 day of G1V1tM , 2018. - Chairperson REVIEW AND APPROVED: Exe4le bilector APPROVED AS TO FORM: V104x�, i�nGeneral Legal CoInsel 18-6205/171963/mv 2 RESOLUTION NO. 2018-01 EXHIBIT A ADMINISTRATIVE BUDGET FOR THE PERIOD JULY 1, 2018 THROUGH JUNE 30, 2019 [behind this page] 18-6205/171963/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 lssol 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 260,000 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 distributed 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 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. Successor Agency Res. No. 2018-01 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU 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 16, 2018 and that is was so adopted by the following vote: AYES: Board Members: O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden NOES: Board Members: None ABSENT: Board Members: None ABSTAIN: Board Members: None A74tu e&4,udj� Clerk of The Successor Agency to the Redevelopment Agency of the City of Huntington Beach, California RESOLUTION NO. 2018-02 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, 2018 —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 annual fiscal period 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 annual fiscal period commencing on July 1, 2018 and continuing through June 30, 2019 ("ROPS 18-19") which is attached hereto as Exhibit A; and After reviewing ROPS 18-19, presented to and recommended for approval by Successor Agency staff, and after reviewing any written and oral comments from the public relating thereto, the Successor Agency 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 Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The Successor Agency hereby finds and determines that the foregoing recitals are true and correct. 2. The Successor Agency hereby approves ROPS 18-19 in the form presented to the Successor Agency 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 Successor Agency authorizes and directs the Successor Agency staff to: (i) take all actions necessary under the Dissolution Act to post ROPS 18-19 on the Successor Agency website once approved by the Oversight Board to the Successor Agency; (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 Successor Agency authorizes and directs the Successor Agency staff to make such non-substantive revisions 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 Successor Agency pursuant to this Resolution. 18-6205/171968/mv 1 RESOLUTION NO. 2018-02 4. The Successor Agency authorizes the Executive Director, or designee, to make such non-substantive changes and amendments to ROPS 18-19 as may be approved by the Executive Director of the Successor Agency and its legal counsel, and ROPS 18-19 as so modified shall thereupon constitute ROPS 18-19 as approved by the Successor Agency pursuant to this Resolution. 5. 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, therefore, reserves all such rights of the Successor Agency and the City of Huntington Beach under law and/or 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 ��p� day of (A YAUk(AYNJ , 2018. Chairperson REVI WED ND APPROVED: Exficutilvj Director APPROVED AS TO FORM: 1� LIL � )-*f j_j' L +General Legal C unsel 18-6205/171968/mv 2 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2018 THROUGH JUNE 30, 2019 ("ROPS 18-19") [behind this page] Recognized Obligation Payment Schedule(ROPS 18-19)-Summary Filed for the Juty 1,2018 through June 30,2019 Period Successor Agency: Huntington Beach County: Orate 18-19A Total 18-196 Total Current Period Requested Funding for Enforceable Obligations(ROPE Detail) (July-December) (January-June) ROPE 13.19 Total A Enforceable Obligations Funded as Follows(B+C+0): $ 3,760 $ 3,750 $ 7,500 B Bond Proceeds - - C Reserve Balance - - - D Other Funds 3,750 3,750 7,500 E Redevelopment Property Tax Trust Fund(RPTTF)(F+G): $ 6,364,938 S 9,006,728 $ 15,371,666 F RPTTF 6,239,938 8,881,728 15,121,666 G Administrative RPTTF 126,000 125.000 250,000 H Current Period Enforceable Obligations(A+E): $ 6,368,688 S 9,010,418 $ 16,379,166 Certification of Oversight Board Chairman: Pursuant to Section 34177(o)of the Health and Safety code,I hereby certify that the above is a true and accurate Recognized Obligation Name Title Payment Schedule for the above named successor agency. is/ Signature Date seseeesaaaaeaaaaessee© v iCi�����■ii�i�����1����i�ii -won.MIMMIN m iiiiW ram■■a6moom ink Aim _AY= m § �Mm �� r®eew■e�esseaaasasaseasea MISIMMUMMMMIMMEMOM MENEM Noma a iWOMI 0 NOE IMUMMEM MENNEEM 13=11MIMEMiam MENNEN IN s�eaaaammmm=N'mmmp aasasaaaaas ir'I +r.—"7fyiYiir` iiii��ar—��■i _____ice_____Nl�i MML - ■r ■� ■■■ NONE IYr�■�!1d^1 G1•newY•y�l•rY�GF■I•wry-wevs eee M e.was MngN is>S M Manw n Iw11Y • ■ e • e r • w l ■ t ■ • c r a w U4M ]eilfi Mf■Ivm Fine]uea• low .we..�.a� r o.e ..w.ww r.l.. o.Y. wnr wr wa.w. r� a.r� ern rrrrt rr I.rr..r wN. yr xbW Yvn II W pwRll•]LLC MII701]�Y rR NT uY ! 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YIfY'R tYbl 1 N v r� ylll]ly MlwW lIPI•ewlnl M! an+yn �Ywwlw w a r vinT1 YIA vwrt] erY Rn+ w Bona n.N.R rqp IIn�nY flyyrMRrwWwM � r s+• rn.Yyn .wwww.wr.. � w 1 a i IIwgYY �wor]a Rxi.fIVIL VY�rYY i wYYwG�eY !!Y 'Rv bnY v •+c rINY� • � wsm I lnw�R rerlwrr e Y�1 Iw s •wYx 4/nr Iwin� Y 1 � NvlvpvlYlvlb�M1•v�r •Alnl w•w•ma� Mr Huntington Beach Recognized Obligation Payment Schedule(ROPS 16-19) -Report of Cash Balances July 1,2016 through June 30,2016 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177(I),Redevelopment Property Tax Tmsl Fund(RPTTF)may be listed as a source of payment on the ROPS,but only to the extent no other funding source is available or whenpaymeattompmpertytmmvenuesismquimdbyanenforceableobligatttror. For lips on how to complete the Report of Cash Balances Fprm, ee s INSERT 0RL LINK TO CASH BALANCE TIPS SHEET A B C O 7 E F 6 H I Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS period balances Prior ROES and RPTTF Bonds Issued on Bonds issued on DDR RPTTF distributed as Rent, Non-Admin Cash Balance Information for ROPS 15-16 Actuals or before or after balances reserve for future grants, and (01101116-06130116) 12/31110 01/01111 retained periods intemst etc. Admin Commrents 1 Beginning Available Cash Balance(Actual 67101H6) 4,346.176 300.000 53,641 2 Revenuelfncome(Actual OVUM) RPTTF arnourds rJl rid He 1n the HOPS 15-16 total distdhu!,nn 6nm the County Auditor-Controller during June 2015 and January 2016- 976,766 6,030,835 3 Expenditures for ROPS 16.16 Enforceable Obligations(Actual 06130116) 4,329.170 575,000 8,047.771 4 Retention of Available Cash Balance(Actual 06130)16) 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 JO817011G) C taG=.(1+2-3-4),H=(1t2-3-4-6) f 17,006 L 701,768 i 36,706 Successor Agency Res. No. 2018-02 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU 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 16, 2018 and that is was so adopted by the following vote: AYES: Board Members: O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden NOES: Board Members: None ABSENT: Board Members: None ABSTAIN: Board Members: None 7� Clerk of The Successor Agency to the Redevelopment Agency of the City of Huntington Beach, California