HomeMy WebLinkAboutSA RESO 2012-23RESOLUTION NO. 2012 — 23
RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS
THE NATIONAL CITY REDEVELOPMENT AGENCY APPROVING
AND AUTHORIZING THE RETENTION OF A LICENSED ACCOUNTANT
TO PERFORM SERVICES RELATING TO PREPARATION OF
THE DUE DILIGENCE REVIEW AND RELATED ACTIONS PURSUANT
TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34179.5, AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE ANY AND ALL ACTIONS
AND EXECUTE ANY AND ALL DOCUMENTS, INCLUDING WITHOUT LIMITATION
A PROFESSIONAL SERVICES AGREEMENT WITH THE SELECTED LICENSED
ACCOUNTANT, AS ARE NECESSARY TO EFFECTUATE THE INTENT OF
THIS RESOLUTION AND TO COMPLY WITH HEALTH AND SAFETY CODE
SECTION 34179.5 ON BEHALF OF THE SUCCESSOR AGENCY
WHEREAS, the City Council of the City of National City (the "City") established
the Redevelopment Agency of the City of National City (the "Redevelopment Agency") by
Ordinance No. 1164, dated April 11, 1967, pursuant to the California Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California
Health and Safety Code) ("Redevelopment Law"); and
WHEREAS, the City Council of the City established the Housing Authority of the
City of National City (the "Housing Authority") by Ordinance No. 1484, dated October 14, 1975;
and
WHEREAS, the City Council of the City established the Community Development
Commission of the City of National City (the "CDC") by Ordinance No. 1484, dated October 14,
1975, and vested the CDC with all of the powers, duties and responsibilities of both the
Redevelopment Agency and the Housing Authority, among other matters, for the purpose of
enabling the CDC to operate and govern the Redevelopment Agency and the Housing Authority
under a single board and as a single operating entity (the CDC acting in its capacity as the
Redevelopment Agency is referred to herein as the "CDC -RDA", and the CDC acting in its
capacity as the Housing Authority is referred to herein as the "CDC -HA"); and
WHEREAS, the City Council of the City has adopted redevelopment plans for
National City's redevelopment project areas, and from time to time, the City Council has
amended such redevelopment plans; and
WHEREAS, the CDC -RDA was responsible for the administration of
redevelopment activities within the City; and
WHEREAS, AB X1 26 (2011-2012 151 Ex. Sess.) ("AB 26") was signed by the
Governor of California on June 28, 2011, making certain changes to the Redevelopment Law
and the California Health and Safety Code ("Health and Safety Code"), including adding Part 1.8
(commencing with Section 34161) and Part 1.85 (commencing with Section 34170) ("Part 1.85")
to Division 24 of the Health and Safety Code; and
WHEREAS, pursuant to AB 26, as modified by the California Supreme Court on
December 29, 2011 by its decision in California Redevelopment Association v. Matosantos, all
California redevelopment agencies, including the Redevelopment Agency and the CDC -RDA,
were dissolved on February 1, 2012, and successor agencies were designated and vested with
Resolution No. 2012 — 23
August 14, 2012
Page Two
the responsibility of paying, performing and enforcing the enforceable obligations of the former
redevelopment agencies and winding down the business and fiscal affairs of the former
redevelopment agencies; and
WHEREAS, pursuant to AB 26, the City Council of the City adopted Resolution
No. 2012-15 on January 10, 2012, electing to be the Successor Agency to the CDC -RDA (the
"Successor Agency"). The Successor Agency is a legal entity that exists separate and
independent from the City. The Successor Agency formally named itself the "Successor
Agency to the Community Development Commission as the National City Redevelopment
Agency"; and
WHEREAS, as part of the FY 2012-2013 State budget package, on June 27,
2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 ("AB 1484",
Chapter 26, Statutes 2012). Although the primary purpose of AB 1484 is to make technical and
substantive amendments to AB 26 based on issues that have arisen in the implementation of
AB 26, AB 1484 imposes additional statutory provisions relating to the activities and obligations
of successor agencies and to the wind down process of former redevelopment agencies; and
WHEREAS, Health and Safety Code Section 34179 of AB 26 as amended by AB
1484 establishes a seven (7) member local entity with respect to each successor agency and
such entity is titled the "oversight board." The oversight board has been established for the
Successor Agency (hereinafter referred to as the "Oversight Board") and all seven (7) members
have been appointed to the Oversight Board pursuant to Health and Safety Code Section
34179. The duties and responsibilities of the Oversight Board are primarily set forth in Health
and Safety Code Sections 34179 through 34181 of AB 26 as amended by AB 1484; and
WHEREAS, Health and Safety Code Section 34179.5 requires the Successor
Agency to employ a licensed accountant, approved by the San Diego County Auditor -Controller
and with experience and expertise in local government accounting, to conduct a due diligence
review to determine the unobligated balances available for transfer to taxing entities in
furtherance of Health and safety Code Section 34177(d); and
WHEREAS, pursuant to Health and Safety Code Section 34177.3(b), the
Successor Agency may create enforceable obligations to conduct the work of winding down the
Redevelopment Agency, including, without limitation, hiring staff and acquiring necessary
professional administrative services; and
WHEREAS, Health and Safety Code Section 34171(d)(1)(C) of AB 26, as
amended by AB 1484, defines an "enforceable obligation" to include payments required by
obligations imposed by state law, such as the requirement of Section 34179.5 to employ a
licensed accountant, and further Health and Safety Code Section 34171(d)(1)(F) of AB 26, as
amended by AB 1484, defines an "enforceable obligation" to include contracts or agreements
necessary for the administration or operation of the Successor Agency. As of February 1, 2012,
pursuant to AB 26, as amended by AB 1484, property tax revenues (former tax increment
revenues) are allocated to the County of San Diego and then to the Successor Agency for
payment of enforceable obligations of the Redevelopment Agency and the Successor Agency;
and
Resolution No. 2012 - 23
August 14, 2012
Page Three
WHEREAS, pursuant to Health and Safety Code Section 34177 of AB 26, the
Successor Agency (i) prepared its draft Recognized Obligation Payment Schedule ("ROPS") by
March 1, 2012, (ii) adopted the draft ROPS for the period ending June 30, 2012, (iii) submitted
the draft ROPS to the State of California Controller's Office and the State of California
Department of Finance by April 15, 2012 for the period of January 1, 2012 through June 30,
2012, (iv) the draft ROPS as the first ROPS for submission to the State Controller's Office and
the Department of Finance by April 15, 2012 for the period of January 1, 2012 through June 30,
2012, and (v) adopted the second ROPS covering the period from July 1, 2012 through
December 31, 2012; and
WHEREAS, pursuant to Health and Safety Code Section 34177(m) of AB 26, as
amended by AB 1484, the Successor Agency is required to submit the third ROPS for the
period of January 1, 2013 through June 30, 2013, after its approval by the Oversight Board, to
the Department of Finance and the County Auditor -Controller no later than September 1, 2012;
and
WHEREAS, the third ROPS covering the period from January 1, 2013 through
June 30, 2013 includes an obligation pertaining to the estimated cost to the Successor Agency
in the amount of $18,000 to retain a licensed accountant to perform services relating to
preparation of the due diligence review and related actions pursuant to Health and Safety Code
Section 34179.5; and
WHEREAS, pursuant to Health and Safety Code Sections 34171(d)(1)(C),
34171(d)(1)(F), and 34177.3(b), the cost to the Successor Agency in the estimated amount of
$18,000 to retain a licensed accountant to perform services relating to preparation of the due
diligence review and related actions pursuant to Health and Safety Code Section 34179.5 shall
constitute an enforceable obligation of the Successor Agency payable from the property tax
revenues available to be allocated to the Successor Agency by the County of San Diego to pay
enforceable obligations pursuant to a valid ROPS; and
WHEREAS, pursuant to Health and Safety Code Section 34183(a)(2) of AB 26,
as amended by AB 1484, the County of San Diego is required to make a payment of property
tax revenues to the Successor Agency by January 2, 2013 for payments to be made toward
recognized obligations listed on the third ROPS for the period of January 1, 2013 through June
30, 2013; and
WHEREAS, this Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code of
Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's
environmental guidelines; and
WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term
is defined by Guidelines section 15378, because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment, per section 15378(b)(5) of the Guidelines; and
Resolution No. 2012 — 23
August 14, 2012
Page Four
WHEREAS, all of the prerequisites with respect to the approval of this Resolution
have been met.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Community Development Commission as the National City Redevelopment Agency, as follows:
Section 1. The foregoing recitals are true and correct and are a substantive part of
this Resolution.
Section 2. The adoption of this Resolution is not intended to waive, and shall not
constitute a waiver, by the Successor Agency of any constitutional, legal
or equitable rights that the Successor Agency may have to challenge,
through administrative orjudicial proceedings, the effectiveness and/or
legality of all or any portion of AB X1 26 or AB 1484, any determinations
rendered or actions or omissions to act by any public agency or
government entity or division in the implementation of AB X1 26 and AB
1484, and any and all related legal and factual issues, and the Successor
Agency expressly reserves any and all rights, privileges, and defenses
available under law and equity, including the right to increase the
estimated cost of $18,000 to the Successor Agency, as necessary, for
retaining a licensed accountant to perform services relating to preparation
of the due diligence review and related actions pursuant to Health and
Safety Code Section 34179.5.
Section 3. The Successor Agency hereby approves, authorizes and directs the
Executive Director, or designee, to retain a licensed accountant,
approved by the San Diego County Auditor -Controller and with
experience and expertise in local government accounting, for an
estimated cost of $18,000, to perform the services relating to preparation
of the due diligence review and related actions pursuant to Health and
Safety Code Section 34179.5.
Section 4. The Executive Director, or designee, is hereby authorized and directed to
include on the third ROPS and any subsequent ROPS, as necessary, the
costs to the Successor Agency for retaining a licensed accountant to
perform the services relating to preparation of the due diligence review
and related actions pursuant to Health and Safety Code Section 34179.5,
in order for the Successor Agency to pay for and/or recover all such costs
as an enforceable obligation of the Successor Agency payable from
property tax revenues pursuant to AB 26, as amended by AB 1484.
Section 5. The Successor Agency determines that this Resolution is not a "project"
for purposes of CEQA, as that term is defined by Guidelines section
15378, because this Resolution is an organizational or administrative
activity that will not result in a direct or indirect physical change in the
environment, per section 15378(b)(5) of the Guidelines.
Resolution No. 2012 — 23
August 14, 2012
Page Five
Section 6. This Resolution shall take effect upon the date of its adoption.
Section 7. The Executive Director, or designee, is hereby authorized to take any and
all actions and execute any and all documents, including without limitation
a professional services agreement with the selected licensed accountant,
as are necessary to effectuate the intent of this Resolution and to comply
with Health and Safety Code Section 34179.5 on behalf of the Successor
Agency.
PASSED and ADOPTED this 14th day of AYon
12.
rison, Chairman
ATTEST:
it
Mic ael R. Dalla, ity Clerk as
Secretary to the Successor Agency
Passed and adopted by the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California, on
August 14, 2012 by the following vote, to -wit:
Ayes: Boardmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman of the Successor Agency to the
Community Development Commission
as the Redevelopment Agency of the
City of National City, California
. W k 9N �—
City Clerk Ser ' g as Secretary
to the Successor Agency
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-23 of the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California,
passed and adopted on August 14, 2012.
City Clerk Serving as Secretary
to the Successor Agency
By:
Deputy