HomeMy WebLinkAboutADOPT RESOLUTION 369 OF THE REDEVELOPMENT AGENCY OF THE CITY 'L. I )L-L-L=,� SA).
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Council/Agency Meeting Held: —
Deferred/Continued to:
Approve ❑ Conditionally Approved ❑ Denied �/ - City rk's S nature
Council Meeting Date: 9/4/2007 Department ID Number: FN 07-005
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: PENELOPE CULBRETH-GRAFT, DPA, CITY ADMINISTRATOR
PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR �//
STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT/-f3L
DEPUTY EXECUTIVE DIRECTOR
SUBJECT: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH AMENDING THE AGENCY DEBT
PURSUANT TO THE OPERATIVE AGREEMENT BETWEEN THE
CITY OF HUNTINGTON BEACH AND THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON FOR THE HUNTINGTON
BEACH REDEVELOPMENT PROJECT (MERGED PROJECT AREA)
AND SOUTHEAST,COASTAL PROJECT AREA
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
The Redevelopment Agency of the City of Huntington Beach incurs debt that allows it to
receive tax increment revenue in accordance with California Community Redevelopment law.
The Agency is required to file an annual statement to document this debt with the County of
Orange Auditor/Controller. This statement is also needed for audit purposes and to keep the
City Council informed of the changes in the debt owed the City by the Redevelopment
Agency for the merged Huntington Beach Project Area and the Southeast Coastal Project
Area.
Funding Source: Not Applicable
Recommended Action: Motion to:
Adopt Resolution No. 369 of the Redevelopment Agency of the City of Huntington
Beach amending the Agency Debt pursuant to the Operative Agreement between the City of
Huntington Beach and the Redevelopment Agency of the City of Huntington Beach for the
merged Huntington Beach Project Area and the Southeast Coastal Project Area.
RCA ROUTING SHEET
INITIATING DEPARTMENT: FINANCE
SUBJECT: A Resolution of the Redevelopment Agency of the City
of Huntington Beach Amending the Agency Debt
Pursuant to the Operative Agreement Between the City
of Huntington Beach and the Redevelopment Agency of
the City of Huntington for the Huntington Beach
Redevelopment Project (Merged Project Area) and
Southeast Coastal Project Area
COUNCIL MEETING DATE: September 4, 2007
,F
RCA'ATTAC°H`M.EWS
STATUS,:
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached
Not Applicable ❑
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EX LAN'"ATI(? 'FOR MISSING 4TTAt:HM ENT,, 4
REVIEWED' ;. TURNED, .FOR RE ,. ED
Administrative Staff
Deputy City Administrator(initial)
City Administrator(initial)
City Clerk ( )
EXPLANATION FOR RETURN£OF=ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: Robert Sedlak and Josh Brooks
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 9/4/2007 DEPARTMENT ID NUMBER: FN 07-005
The debt at September 30, 2007 will be as follows:
Merged Project Area $84,841,925
Southeast Coastal Project Area 7,334,100
Total Debt $92,176,025
Alternative Action(s):
1. Do not adopt the resolution in which would result in no updating of the Agency debt
to the City.
2. Adopt the agreement with modifications that the City Council would specify.
Analysis:
To receive tax increment revenue, the Redevelopment Agency must have sufficient debt on
its books each year. It is common practice for cities to book all possible eligible expenditures
within a redevelopment project area, such as capital projects, as a debt of the
Redevelopment Agency. These capital projects have been undertaken as part of the normal
course of business through a number of the City's specialized funds, such as the Water Fund
and the Sewer Fund. In addition, interest accrues on this debt, based on the City's annual
rate of investment return, which further assures the Agency's ability to collect tax increment
revenue in the future. There have been no increases in the debt other than the interest
accrual for the merged project area. There is no change in the debt for the Southeast
Coastal Project Area.
Merged Project Area:
The City charged the Agency 4.26% on all outstanding advances for October 1st to
September 30th, which is approximately the average yield earned by the City Treasurer on
investments for the year through June 30, 2007. The total interest accruals were
$3,625,395.
The City Council/Agency originally approved $3,360,000 of debt repayment for the
2006/2007 fiscal year.
The schedule on the following page shows the breakdown of the operative agreement debt
by fund and the changes during the year for the merged project area. It does not include
debt incurred with entities other than the City such as bonds, mortgages, and debt owed
through Disposition and Development Agreements and Owner Participation Agreements with
private parties.
-2- 8/16/2007 9:08 AM
REQUEST FOR COUNCILIREDEVELOPMENT AGENCY ACTION
MEETING DATE: 9/4/2007 DEPARTMENT ID NUMBER: FN 07-005
Merged Project Area
Pre AB 1290 Agency Debt
As of September 30, 2007
DEBT@ BUDGETED ACCRUED DEBT @
General Fund 10/1/2006 REPAYMENTS INTEREST 9/30/2007
Direct Advances $ 3,565,032 $ 3,565,032
Interest On Direct Advances - (151,870) 151,870 -
Total Direct Advances 3,565,032 (151,870) 151,870 3,565,032
Indirect Advances 6,567,353 6,567,353
Interest On indirect Advances - (279,769) 279,769 -
Total Indirect Advances 6,567,353 (279,769) 279,769 6,567,353
Land Sales 32,833,417 32,833,417
Interest On Land Sales 31,726,363 (2,928,361) 2,750,247 31,548,249
Total Land Sales 64,559,780 (2,928,361) 2,750,247 64,381,666
Total General Fund 74,692,165 (3,360,000) 3,181,886 74,514,051
Sewer Fund
Direct Advances 130,560 - 130,560
Interest On Direct Advances 98,402 9,754 108,156
Total Direct Advances 228,962 - 9,754 238,716
Deferred Development Fees 37,888 - 37,888
Interest On Deferred Development Fees 104,707 6,075 110,782
Total Deferred Development Fees 142,595 - 6,075 148,670
Total Sewer Fund 371,557 - 15,829 387,386
Drainage Fund
Direct Advances 250,000 - - 250,000
Interest On Direct Advances 301,798 - 23,507 325,305
Total Direct Advances 551,798 - 23,507 575,305
Deferred Development Fees 53,650 - 53,650
Interest On Deferred Development Fees 98,141 6,466 104,607
Total Deferred Development Fees 151,791 - 6,466 158,257
Total Drainage Fund 703,589 - 29,973 733,562
Park A & D Fund
Deferred Land Sale 1,740,834 - - 1,740,834
Interest On Deferred Land Sale 2,804,601 - 193,636 2,998,237
Total Land Sales 4,545,435 - 193,636 4,739,071
Deferred Development Fees 247,664 - 247,664
Interest On Deferred Development Fees 89,489 14,363 103,852
Total Park A& D Deferred Dev Fees 337,153 - 14,363 351,516
Total Park A& D 4,882,588 - 207,999 5,090,587
Capital Improvement Fund
Direct Advances 200,000 - - 200,000
Interest On Direct Advances 328,096 - 22,497 350,593
Total Capital Improvement Fund 528,096 - 22,497 550,593
Water Fund
Direct Advances 1,138,000 - - 1,138,000
Interest On Direct Advances 2,282,052 - 145,694 2,427,746
Total Water Fund 3,420,052 - 145,694 3,565,746
Total Pre AB 1290 Debt-All Funds $ 84,598,047 $ (3,360,000) $ 3,603,878 $ 84,841,925
-3- 8/16/2007 9:08 AM
REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION
MEETING DATE: 9/4/2007 DEPARTMENT ID NUMBER: FN 07-005
The Agency is now classifying debt as "Pre AB 1290" and "Post AB 1290." AB 1290 was a
sweeping Redevelopment reform bill enacted in 1993 that placed time limits on incurring debt
within Redevelopment project areas. Under the terms of AB 1290, debt incurred prior to
January 1, 1994 can continue to be repaid after the project area has expired. Staff is
recommending that all debt repayments be applied first to debt incurred after January 1,
1994, then to debt incurred prior to that date. All of the debt at year-end is considered pre
AB 1290 debt.
Southeast Coastal Project Area:
On September 2, 2003, the Council/Agency approved a Cooperation Agreement Regarding
Capital Improvements in the project area. The debt in this project area is recorded on a
prospective basis. The amount identified as initial debt is the entire Conceptual Five Year
Capital Improvement Program for the project area that totaled $6,775,000. The debt is
activated as projects are begun. A total of $270,000 from the General Fund has been used
to fund the Conservancy Grant in fiscal year 2004/2005. Additionally, the project advanced
operating expenses from the General Fund and the Merged Project Area Redevelopment
Fund in fiscal year 2003/2004. These advances were not included in the prior year operative
agreement. Interest will be charged on the advances from the General Fund but not on the
advances from the Merged Project Area Redevelopment Fund. Because the debts were
incurred after January 1, 1994, the entire amount is classified as post AB 1290.
The schedule on the following page shows the breakdown of the operative agreement debt
by fund and the changes for the Southeast Coastal Project Area.
Southeast Coastal Project Area
Post AB 1290 Agency Debt
As of September 30, 2007
BEGINNING
BALANCE @ BUDGETED ACCRUED DEBT @
General Fund 10/01/2006 REPAYMENTS INTEREST 9/30/2007
Direct Advances $ 199,946 $ - $ 199,946
Interest On Advances 18,514 - $ 9,306 27,820
Total Direct Advances 218,460 - 9,306 227,766
Capital Improvement Projects $ 270,000 $ - 270,000
Interest 16,634 - 12,211 28,845
Total Capital Improvement Projects 286,634 - 12,211 298,845
Total General Fund 505,094 - 21,517 526,611
Merged Project Area RDA Fund
Direct Advances 302,489 - 302,489
Interest On Advances - - N/A -
Total Merged Project Area RDA Fund 302,489 - - 302,489
Total Post AB 1290 Debt-All Funds $ 807,583 $ - $ 21,517 $ 829,100
-4- 8/16/2007 9:08 AM
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 9/4/2007 DEPARTMENT ID NUMBER: FN 07-005
Southeast Coastal Project Area
Future Capital Projects Balance - General Fund
As of September 30, 2007
BEGINNING AVAILABLE
BALANCE @ BUDGETED ACCRUED BALANCE @
10/01/2006 REPAYMENTS INTEREST 9/30/2007
Capital Improvement Projects $ 6,505,000 $ - $ - $ 6,505,000
Strategic Plan Goal: Not Applicable
Environmental Status: Not Applicable
Attachment(s):
City Clerk's
Page Number No. Description
1. A Resolution No. 369 of the Redevelopment Agency of the
F' z' City of Huntington Beach Amending the Agency Debt Pursuant to the
Operative Agreement between the City of Huntington Beach and the
Redevelopment Agency of the City of Huntington Beach for the
Huntington Beach Redevelopment Project Area and the Southeast
Coastal Project Area.
-5- 8/16/2007 9:08 AM
ATTACHMENT # 1
RESOLUTION NO. 369
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH AMENDING THE AGENCY DEBT PURSUANT TO THE OPERATIVE
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH FOR THE
HUNTINGTON BEACH REDEVELOPMENT PROJECT, AND THE COOPERATION
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH REGARDING
CERTAIN CAPITAL IMPROVEMENTS WITHIN, OR OF BENEFIT TO, THE SOUTHEAST
COASTAL REDEVELOPMENT PROJECT
WHEREAS, the City Council of the City of Huntington Beach (the "City Council")
adopted Ordinance Nos. 2576, 2577, 2578, 2582, and 2743 approving and adopting the
Redevelopment Plan for the Yorktown-Lake Redevelopment Project, the Redevelopment Plan
for the Talbert-Beach Redevelopment Project, the Redevelopment Plan for the Main-Pier
Redevelopment Project, the Redevelopment Plan for the Oakview Redevelopment Project, and
the Redevelopment Plan for the Huntington Center Commercial District Redevelopment Project,
respectively; and
The Redevelopment Agency of the City of Huntington Beach ("Agency") and the City of
Huntington Beach ("City") entered into a Cooperative Agreement, dated June 20, 1983, by
which the City agreed to provide to the Agency certain assistance and to otherwise cooperate
with the Agency in carrying out redevelopment projects; and
Pursuant to the Cooperative Agreement, the Agency and City Council entered into
Operative Agreements for the Yorktown-Lake, Talbert-Beach, Main-Pier, Oakview and
Huntington Center Redevelopment Projects (the "Constituent Projects"), by which the City
provided the Agency with both administrative and/or technical services, constructed required
public improvements and facilities as appropriate and necessary, and provided funds to carry out
the Constituent Projects; and
Said Operative Agreements also identified the terms under which the Agency would
reimburse the City for the associated costs of such services, improvements, facilities and funds;
and
The City Council adopted Ordinance No. 3343 on December 16, 1996 amending and
merging the Constituent Projects into the Redevelopment Plan for the Huntington Beach
Redevelopment Project(the "HBRP"); and
The City Council adopted Ordinance No. 3561 on June 17, 2002, approving and adopting
the Redevelopment Plan for the Southeast Coastal Redevelopment Project ("SCRP"); and
The Agency and the City entered into a Cooperation Agreement, dated September 2,
2003 (the "SCRP Cooperation Agreement"), regarding redevelopment projects and capital
improvements to be carried out in the SCRP Area; and
07-1131/12725 1
Agency Resolution No. 369
It is now necessary and appropriate that the City Council and the Agency amend the
Operative Agreements pursuant to the Cooperative Agreement and the SCRP Cooperation
Agreement, to reflect the Agency's total debt as of September 30, 2007.
NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does
hereby resolve as follows:
SECTION 1. That the Operative Agreements between the Redevelopment Agency and
the City of Huntington Beach for the implementation of the HBRP, and the SCRP Cooperation
Agreement,are still in effect as previously approved.
SECTION 2. That, pursuant to such Operative Agreements and the SCRP Cooperation
Agreement, the Agency debt to the City, which is to continue to be carried forward for the HBRP
and the SCRP, is hereby amended as follows:
HBRP SCRP Total
Operative Agreement Debt 1011105 $84,598,047 $7,312,583 $91,910,630
Accrued Interest 10/1/06 to 9/30/07 3,603,878 21,517 3,625,395
Other Reductions of Debt 3,360,000 -- 3,360,000
Total Agency Debt as of 9/30/07 $84,841,925 $7,334,100 $92,176,025
SECTION 3. The Chairperson is hereby authorized and directed to amend the Agency
debt to the City as approved hereby.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a regular meeting thereof held on the 4th day of September 2007.
CITairperson
REVIEWO ANDAPPROVED: APPROVED AS TO FORM:
f
L� Executive Director Age cy Attorney
INITIAT AND APPROVED:
�j
irector of Finance
07-1131/12725 2
Res. No. 369
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
1, JOAN FLYNN, Clerk of the Redevelopment Agency of the
City of Huntington Beach, California, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Redevelopment Agency of
the City of Huntington Beach at a regular meeting of said Redevelopment
Agency held on the 4th day of September, 2007 and that it was so
adopted by the following vote:
AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
Cler f the Redevelopment Ggency
of the City of Huntington Beach, CA