HomeMy WebLinkAboutAdoption of City Council Resolutions 2012-01 and 2012-02 Re d .$'?
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70
Council Meeting Date: 1/09112 Department ID Number: ED 12-001
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Bob Hall, Deputy City Manager/Director of Economic Development
SUBJECT: Adoption of Successor Agency Resolutions - City Council Resolution
Nos. 2012-01 and 2012-02
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: On December 29, 2011, the California State Supreme Court
announced its ruling upholding Assembly Bill ABX1 26 (dissolution of redevelopment
agencies), but overturning and invalidating Assembly Bill ABX1 27 (allowing "pay-to play").
Based upon the Court's ruling validating AB1X 26 redevelopment agencies are dissolved
and replaced with Successor Agencies responsible for winding down the affairs of the
redevelopment agencies including disposing of their assets. The Redevelopment Agency
and City Council are requested to adopt the attached Resolutions designating the City
Council as the Successor Agency and transferring all assets to the Successor Agency.
Funding Source: Not Applicable
Recommended Action: Motion to:
Adopt Resolution Number 2012-01, "A Resolution of the City Council of the City of
Huntington Beach Designating the City Council as the Successor Agency Under Part 1.85 of
Division 24 of the Health and Safety Code Subject to Reservations Herein Stated;" and,
Adopt Resolution Number 2012-02, "A Resolution of the City Council of the City of
Huntington Beach Under Part 1.85 of Division 24 of the Health and Safety Code Designating
the Housing Authority to Perform the Housing Functions Previously Performed by the
Huntington Beach Redevelopment Agency Subject to Reservations Herein Stated."
Alternative Action(s):
Do not adopt the Resolutions, which would allow a County or a separate taxing agency to
become the Successor Agency and be the lead in the dissolution of Agency assets.
HB - 303 Item 3. o 1
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 1/09/12 DEPARTMENT ID NUMBER: ED 12-001
Analysis:
Under Assembly BiII1X 26, Redevelopment Agencies are dissolved as of February 1, 2012.
However, the Assembly Bill creates "Successor Agencies" that will become effective on
February 1, 2012. On this date all assets, properties, contracts, and leases of the former
Redevelopment Agency are to be transferred to the Successor Agencies.
If the City does not elect to become the Successor Agency, the County or another taxing
agency can become the Successor Agency thereby overseeing the former Redevelopment
Agency assets. If the City does not elect to be the Successor Housing Agency and assume
the Redevelopment Agency's housing functions, such housing functions and all related
assets will be transferred to the Orange County Housing Authority.
The City may elect to assume the housing functions and take over the housing assets of the
former Redevelopment Agency, excluding amounts in the current Housing Fund reserves.
The City will also receive related rights, powers, liabilities, duties, and obligations, thereby
becoming a "Successor Housing Agency."
The Successor Agency will continue payments on the Enforceable Obligation Payment
Schedule (EOPS), maintain reserves, perform obligations required by Enforceable
Obligations, dispose of assets and property, and enforce all rights for the benefit of taxing
agencies. On August 15, 2011, the City Council adopted the Redevelopment Agency's
EOPS. Staff will be updating the EOPS and will present to Council for adoption at the next
meeting.
The Successor Agency will continue to: oversee development of properties until contractual
obligations can be transferred to other parties; use bond proceeds to continue funded
activities; defease bonds; and prepare administrative budgets. The Successor Agency will
prepare a draft of the Recognized Obligation Payment Schedule (ROPS), by March 1, 2012,
for payments through July 1, 2012. The City Council previously adopted the ROPS on
September 19, 2011. Staff will present the updated ROPS to Council for adoption at a future
Council meeting.
Successor Agencies are entitled to an administrative allowance. Subject to approval of the
Oversight Board, the administrative allowance is up to five percent of property tax for 2011-
12 and three percent each year thereafter.
On March 7, 2011, the City Council approved the creation of the Huntington Beach Housing
Authority. It is recommended that the current Agency's Housing assets and functions be
transferred to the Huntington Beach Housing Authority.
The entity that becomes the Successor Housing Agency will assume the housing functions of
the Redevelopment Agency and will be able to use its inherent powers (not limited by the
Dissolution Acts restrictions on Successor Agencies) to fulfill housing obligations and to
exercise Redevelopment Law housing powers to fulfill such obligations.
-2- 1/5/2012 12:41 PM
Item 3. 0 2 HB - 304
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 1/09/12 DEPARTMENT ID NUMBER: ED 12-001
The County of Orange and the City, if it elects to become the,Successor Agency, will appoint
an Oversight Board to review all former Agency assets.
Strategic Plan Goal: Maintain Financial Viability in Our Reserves
Environmental Status: Not Applicable
Attachment(s):
o t - ilption
1. Resolution No. 2012-01, "A Resolution of the City Council of the City of Huntington
Beach Designating the City Council as the Successor Agency Under Part 1.85 of
Division 24 of the Health and Safety Code Subject to Reservations Herein Stated"
2. Resolution No. 2012-02, "A Resolution of the City Council of the City of Huntington
Beach Under Part 1.85 of Division 24 of the Health and Safety Code Designating
the Housing Authority to Perform the Housing Functions Previously Performed by
the Huntington Beach Redevelopment Agency Subject to Reservations Herein
Stated"
-3- 1/5/201212:41 PM
HB - 305 Item 3® ® 3
ATTACHMENT # 1
Item 3. - 4 xa . 306
RESOLUTION NO. 2 012- 01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
DESIGNATING THE CITY COUNCIL AS THE SUCCESSOR AGENCY UNDER PART
1.85 OF DIVISION 24 OF THE HEALTH AND SAFETY CODE SUBJECT TO
RESERVATIONS HEREIN STATED
WHEREAS, the City of Huntington Beach formed the Huntington Beach
Redevelopment Agency ("Agency"), which has continuously engaged in redevelopment
activities under the Community Redevelopment Law (Health and Safety Code sections 33000 et
seq.); and
By enactment of Part 1.85 of Division 24 of the Health and Safety Code, subject to all
reservations herein stated, the Agency, is subject to dissolution on February 1, 2012 such that
the,Agency shall be deemed as a former redevelopment agency under Health and Safety Code
section 34173(a); and
Health and Safety Code section 34173(a) designates successor agencies as successor
entities to former redevelopment agencies; and
The City Council of the City of Huntington Beach desires to declare itself as the
successor agency upon the dissolution of the Agency, subject to all reservations herein stated;
and
The City Council of the City of Huntington Beach hereby desires to adopt this
Resolution, subject to the express reservation of rights of the City of Huntington Beach and
Agency under law and/or equity, including without limitation the effectiveness of Assembly Bill
No. 26 (2011-2012 1st Ex. Sess.) ("AB 1 x 26"), collectively, "Laws;" and
The City Council does not intend, by adoption of this resolution, to waive any
constitutional and/or legal rights under law and/or equity, including without limitation the
effectiveness of AB Ix 26, by virtue of the adoption of this Resolution and, therefore, reserves
all of its rights under Laws to challenge the applicability of AB Ix 26 to the Agency and/or the
City of Huntington Beach in any administrative or judicial proceeding; and
All other legal prerequisites to the adoption of this Resolution have occurred; and
The City Council of the City of Huntington Beach hereby finds and determines that the
foregoing recitals are true and correct.
NOW,THEREFORE,the City Council of the City of Huntington Beach does hereby resolve
as follows:
1. Subject to all reservations herein stated, the City of Huntington Beach hereby
elects to become the successor agency under Health and Safety Code section 34173(a) and
implement all duties of successor agencies under Part 1.85 of Division 24 of the Health and
Safety Code.
- 1 —
12-3165n4603
Resolution No. 2012- 01
2. The City Manager or his/her designee is hereby authorized to administer the
responsibilities of the City of Huntington Beach under Part 1.85 of Division 24 of the Health
and Safety Code.
3. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach t a
regular meeting thereof held on the °t:h day January 12
Mayor
REV AND APPROVED: INITIA ED AND APPROVED:
Ci ger Director of Economic Development
AP P VED AS TO FORM:
Ci ttorney OIV- -�
-2-
12-3165/74603
Res. No. 2012-01
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Special meeting thereof held on January 09, 2012 by the following vote:
AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
C Clerk and ex-officiJklerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
RESOLUTION NO. 2012- 02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH UNDER PART 1.85 OF DIVISION 24 OF THE
HEALTH AND SAFETY CODE DESIGNATING THE HOUSING AUTHORITY
TO PERFORM THE HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE
HUNTINGTON BEACH REDEVELOPMENT AGENCY SUBJECT
TO RESERVATIONS HEREIN.STATED
WHEREAS,the City of Huntington Beach formed the Huntington Beach Redevelopment
Agency, ("Agency")which has continuously engaged in redevelopment activities under the
Community Redevelopment Law(Health and Safety Code sections 33000 et seq.); and
Sections 33334.2 and 33334.3 of the Community Redevelopment Law (CRL) require the
Agency to use 20 percent of taxes allocated to the Agency pursuant to Section 33670 of the CRL for
the purpose of increasing, improving, and preserving the community's supply of low and moderate
income housing("Low and Moderate Income Housing Fund"); and
The Agency has continuously utilized its Low and Moderate Income Housing Fund for the
purpose of increasing, improving and preserving the community's supply of low-and moderate-
income housing available at affordable housing cost;and
By enactment of Part 1.85 of Division 24 of the Health and Safety Code, subject to all
reservations herein stated, the Agency, is subject to dissolution on February 1, 2012 such that the
Agency shall be deemed as a former Redevelopment Agency under Health and Safety Code section
34173(a); and
Subject to all reservations herein stated and pursuant to Part 1.85 of Division 24 of the
Health and Safety Code, the City Council of the City of Huntington Beach desires to designate the
Housing Authority to receive the transfer of, without limitation, all of the housing assets, rights,
powers, duties, obligations, liabilities and functions previously performed by the Agency upon the
dissolution of the Agency, including enforcement of affordability covenants and performance of
related activities pursuant to applicable provisions of the Community Redevelopment Law (Part 1,
commencing with Section 33000), including,but not limited to, Section 33418; and
The City Council of the City of Huntington Beach hereby desires to adopt this Resolution,
subject to the express reservation of rights of the City of Huntington Beach, Agency and Housing
Authority under law and/or equity, including without limitation the effectiveness of Assembly Bill
No. 26 (2011-2012 15`Ex. Sess.)("AB I 26")(collectively, "Laws");and
The City Council does not intend, by adoption of this resolution,to waive any constitutional
and/or legal rights under law and/or equity, including without limitation the effectiveness of AB Ix
26, by virtue of the adoption of this Resolution and,therefore,reserves all of its rights under Laws to
challenge the applicability of AB Ix 26 to the Agency and/or the City of Huntington Beach and/or
Housing Authority in any administrative or judicial proceeding; and
All other legal prerequisites to the adoption of this Resolution have occurred; and
The City Council of the City of Huntington Beach hereby finds and determines that the
foregoing recitals are true and correct,
12-3165n4601 - 1 -
Resolution No. 2012-02
NOW,THEREFORE,the City Council of the City of Huntington Beach does hereby resolve
as follows:
1. Subject to all reservations herein stated and pursuant to Part 1.85 of Division 24 of
the Health and Safety Code, the City of Huntington Beach hereby designates the Housing Authority
to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties,
obligations, liabilities and functions previously performed by the Agency upon the dissolution of the
Agency, including enforcement of affordability covenants and performance of related activities
pursuant to applicable provisions of the Community Redevelopment Law(Part 1, commencing with
Section 33000), including,but not limited to, Section 33418.
2. The designation of Housing Authority under this Resolution is expressly contingent
upon Housing Authority being duly authorized to take, and taking, such act.
3. The City Manager or his/her designee is hereby authorized to make all notifications
of such designation as deemed necessary under Part 1.85 of Division 24 of the Health and Safety
Code and to execute all documents and take all actions necessary and convenient to carry out and
implement the designation of the Housing Authority to receive the transfer of, without limitation, all
of the housing assets, rights, powers, duties, obligations, liabilities and functions previously
performed by the Agency upon the dissolution of the Agency, including enforcement of affordability
covenants and performance of related activities pursuant to applicable provisions of the Community
Redevelopment Law(Part 1, commencing with Section 33000), including,but not limited to, Section
33418.
4. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 9 th day of January ,2012.
Mayor
REVIEFer
APPROVED: INI ED A PPROVED:
City Director of Economic Development
APPROVED AS TO FORM:
TYT a
Ty Atto ey ,'AN\/ - ,-Li-It
12-3165/74601 -2 -
Res. No. 2012-02
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Special meeting thereof held on January 09, 2012 by the following vote:
AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
Ci Clerk and ex-offici Jerk of the
City Council of the City of
Huntington Beach, California