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HomeMy WebLinkAboutRES NO 010-12RESOLUTION NO. O 1 V2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD DETERMINING THAT THE CITY OF BAKERSFIELD ELECTS TO, AND SHALL, SERVE AS THE SUCCESSOR AGENCY TO THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34173 WHEREAS, the Redevelopment Agency of the City of Bakersfield (Agency) is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code §§ 33000 et seq.); and WHEREAS, the City of Bakersfield is a municipal corporation and a Charter City organized and existing under the Constitution of the State of California (City); and WHEREAS, on December 29, 2011, the California Supreme Court issued its opinion in the case California Redevelopment Association, et al. v. Ana Motosontos, etc., et al., Case No. S196861, and upheld the validity of Assembly Bill 1x26 (ABl x26) and invalidated Assembly Bill 1x27; and WHEREAS, the Court's decision results in the implementation of AB1x26 which dissolves all the redevelopment agencies in the State of California as of February 1, 2012; and WHEREAS, pursuant to a provision of AB1x26, codified as Health and Safety Code § 34171 Q) and 34173(a), the city, in the case of a redevelopment agency of a city, automatically becomes the "Successor Agency" to its dissolved redevelopment agency and is charged with the responsibility of winding up the affairs of the dissolved redevelopment agency pursuant to AB1 x26, unless the city council adopts a resolution electing to not serve as the Successor Agency and thereafter files a copy of such resolution with the county auditor - controller; and WHEREAS, the California Supreme Court, in Footnote 25 of its opinion, extended to January 13, 2012 the deadline for a city to make its decision on whether to decline to be the Successor Agency to its dissolved redevelopment agency; and -- Page 1 of 3 Pages -- WHEREAS, the City Council of the City, having considered the matter, has determined, in its legislative discretion, that it is in the best interests of the City for the City to serve as the Successor Agency to the dissolved Agency; and WHEREAS, although pursuant to Health & Safety Code § 34171 Q) and 34173(a), the City would automatically become the Successor Agency unless it affirmatively elects to not serve as the Successor Agency by Resolution, the City nonetheless wishes to express its intention and decision to serve as the Successor Agency to the dissolved Agency. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Bakersfield as follows: 1. The Council finds and determines that the foregoing recitals are true and correct and incorporated herein. 2. The City Council of the City of Bakersfield hereby affirmatively determines that the City of Bakersfield elects to, and shall, serve as the Successor Agency to the dissolved Redevelopment Agency of the City of Bakersfield. 3. The City Manager and his authorized designees are hereby authorized and directed to take all such and further actions and sign such other and further documents as is necessary and proper to implement this Resolution on behalf of the City. 4. The City Clerk shall file a certified copy of this Resolution with the Kern County Auditor - Controller not later than 5:00 p.m. on January 13, 2012. ---- - - - - -- 000---- - - - - -- -- Page 2 of 3 Pages -- M HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on JAN 1 1 2 ©12 , by the following vote: YES: COUNCILMEMBER BENHAM, COUCH, HAN ON, 5Z KAS�MSAL S, SULLI AN, WEI R S: COUNCILMEMBER j cw ABSTAIN: COUNCILMEMBER ht 6Q ABSENT: COUNCILMEMBER f\0t,& ROBERTA GAFFORD, CM CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED JAN 1 1 2112 B, IVIUyul APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney y c�/L� OSHUA H. RUDNICK Deputy City Attorney II -- Page 3 of 3 Pages -- o``gAKF9� U r 0 ORIGINAL n KEY MILESTONES FOR IMPLEMENTATION OF THE DISSOLUTION ACT The Supreme Court promulgated simple reformation rules calling for a four month extension of those dates and deadlines contained in the Dissolution Act that were prior to May 1, 2012. The milestone schedule outlined below honors those rules, while pointing out some anomalies and inconsistencies that may be caused by those rules and that may merit further clarification. • Upon effectiveness of the Dissolution Act: State Controller may commence review of RDA asset transfers after January 1, 2011. • No specified date: State Controller may order the assets improperly transferred by a RDA to its Sponsoring Community after January 1, 2011 to be returned to the RDA (or to its Successor Agency). • After Court decision: Redevelopment activities continue to remain suspended except for limited specified activities pending dissolution of RDAs. • No later than January 13, 2012: Sponsoring Community decides whether to serve as a Successor Agency or Successor Housing Agency by resolution. • No later than January 13, 2012: Sponsoring Community that elects not to serve as a Successor Agency files a copy of resolution to that effect with the County Auditor - Controller. • No later than January 31, 2012: A RDA should consider any appropriate amendments to its previously adopted Enforceable Obligation Payment Schedule to reflect payments due after December 31, 2011. • No later than January 31, 2012: A RDA that has not prepared a preliminary draft of the initial Recognized Obligation Payment Schedule should do so and provide it to the Successor Agency. Those RDAs that have prepared such preliminary drafts should forward it to the Successor Agency. • January 30, 2012: The existing terms of any memorandum of understanding with an employee organization expires, unless a new agreement is reached with a recognized employee organization prior to that date. • February 1, 2012: RDA is dissolved. • February 1, 2012: RDA agreements with Sponsoring Community void (with limited exceptions). • February 1, 2012: All dissolved RDA assets (including properties, contracts, leases, books and records, buildings and equipment, and existing Housing Fund balance), except other housing assets, transferred to Successor Agency. RDA delivers Enforceable Obligation Payment Schedule to Successor Agency. o�0AKF9'� -c� �- m F-- r v o ORIGINAL Transfer of RDA housing assets (excluding existing Housing Fund balances) to Successor Housing Agency. • On and after February 1, 2012: Successor Agency permitted to make payments only as listed on Enforceable Obligation Payment Schedule. • From February 1, 2012 to July 1, 2012: Successor Agency prohibited from accelerating payments or making any lump sum payments that are intended to prepay loans unless such accelerated repayments were required prior to February 1, 2012. • By March 1, 2012: Successor Agency prepares initial draft of Recognized Obligation Payment Schedule for the Enforceable Obligations of the former RDA, subject to review and certification by external auditor as to accuracy and approval by Oversight Board. • No later than April 1, 2012 and May 1, 2012, and each December 1 and May 1 thereafter: Successor Agency reports to the County Auditor - Controller if the total amount available to the Successor Agency is insufficient to fund the specified payments in the next six -month fiscal period. County Auditor - Controller notifies State Controller and DOF no later than 10 days from the date of that notification from the Successor Agency. April 15, 2012: Successor Agency submits first Recognized Obligation Payment Schedule to State Controller and DOF for the period of January 1, 2012 to June 30, 2012. Successor Agency prepares new Recognized Obligation Payment Schedule for each six month period thereafter for approval by Oversight Board. Approved Recognized Obligation Payment Schedules are posted on Successor Agency website and submitted to DOF, Controller and County Auditor - Controller. Commencing on May 1, 2012 *: Successor Agency may pay only those payments listed in the approved Recognized Obligation Payment Schedule. Statements of Indebtedness are no longer recognized for dissolved RDAs. • By May 1, 2012: Oversight Board elects and reports name of chairperson and other members to DOF. • No specified date but after formation of Oversight Board: Each Oversight Board informs DOF of a designated contact person and related contact information for the purpose of communicating with DOF. * The Court's order to extend dates by four months, in this instance, leaves a gap for what payments Successor Agencies may make from the time they come into existence on February 1, 2012. Clarification on this issue would be appropriate. �eAKF9 r v O ORIGINAL • May 15, 2012: Governor appoints persons to unfilled positions on Oversight Board (or any member position that remains vacant for more than 60 days). • No later than May 16, 2012 and June 1, 2012, and each January 16 and June 1 thereafter: County Auditor - Controller transfers an amount of property tax revenues equal to that specified in the Recognized Obligation Payment Schedule from the Trust Fund of each Successor Agency into the Redevelopment Obligation Retirement Fund of that Successor Agency. Successor Agency makes payments on listed Recognized Obligation Payment Schedule from that fund. • By July 1, 2012: County Auditor - Controller completes audit of each dissolved RDA • By July 15, 2012: County Auditor - Controller provides the State Controller copy of all audits performed on dissolved RDAs. • By October 1, 2012: County Auditor - Controller reports specified financial information to the Controller and DOF. • January 1, 2013: California Law Revision Commission drafts a Community Redevelopment Law cleanup bill for consideration by the Legislature. • July 1, 2016: Consolidation of all Oversight Boards into one county -wide Oversight board in each county where more than one Oversight Board was created. • After July 15, 2016: Governor appoints persons to unfilled positions on county- wide Oversight Board (or any member position that remains vacant for more than 60 days). P, KF9� � m r U p ORIGINAL