RPVCCA_SA_SR_2012_02_21_B_Creation_Of_Redevelopment_Obligation_Retirement_FundCITY OF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE CHAIR AND MEMBERS OF THE BOARD OF
DIRECTORS OF THE SUCCESSOR AGENCY TO THE RANCHO
PALOS VERDES REDEVELOPMENT AGENCY
CAROL LYNCH,SUCCESSOR AGENCY ATTORNEY
ROBIN HARRIS,DEPUTY SUCCESS0i:NCY ATTORNEY
DENNIS McLEAN,FINANCE OFFICER
FEBRUARY 21,2012
CREATION OF REDEVELOPMENT OBLIGATION RETIREMENT FUND
CAROLYN LEHR,EXECUTIVE DIRECTOR ~
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Staff recommends that the Soard of Directors of the Successor Agency to the Rancho
Palos Verdes Redevelopment Agency adopt Resolution No.2012-,creating the
Redevelopment Obligation Retirement Fund.
EXECUTIVE SUMMARY
Creation of the Redevelopment Obligation Retirement Fund (RORF)will allow the
Successor Agency to the Rancho Palos Verdes Redevelopment Agency,to receive funds
from the County Auditor-Controller to pay enforceable obligations of the former
redevelopment agency.
The County Auditor-Controller is expected to allocate money to the RORF on May 16,2012
and June 1,2012.
DISCUSSION
This agenda item addresses an outcome of the California Supreme Court's decision in
California Redevelopment Association,et al.v.Matosantos,et al.(Case No.S194861), the
litigation challenging AS X1 26 (liAS 26)and AS X1 27 (liAS 27").AS 26 and AS 27,which
were signed by the Governor of California on June,29,2011,added Parts 1.8 and 1.85 to
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CREATION OF REDEVELOPMENT OBLIGATION RETIREMENT FUND
February 21,2012
Page 2 of2
the Community Redevelopment Law.
The Supreme Court largely upheld AB 26 (which provides for the windup and dissolution of
redevelopment agencies),invalidated AB 27 (which provided for an alternative voluntary
redevelopment program),and held that AB 26 may be severed from AB 27 and enforced
independently.The Supreme Court generally revised the effective dates and deadlines for
performance of obligations in Part 1.85 (the dissolution provisions)arising before May 1,
2012 to take effect four months later.As a result of the Supreme Court's decision,on
February 1,2012,all redevelopment agencies were dissolved and cities do not have the
option of making remittance payments to enable the continued operation of redevelopment
agencies.The City is the successor agency for the Rancho Palos Verdes Redevelopment
Agency (the "Successor Agency")and the board of the Successor Agency (the "Board")
consists of the members of the City Council.
Pursuant to Health and Safety Code Section 34170.5,each successor agency to a former
redevelopment agency shall create within its treasury a Redevelopment Obligation
Retirement Fund to be administered by the successor agency.
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RESOLUTION NO.2012-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY CREATING A REDEVELqPMENT
OBLIGATION RETIREMENT FUND PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34170.5 AND TAKING CERTAIN ACTIONS
IN CONNECTION THEREWITH
RECITALS:
A.AB X1 26 and AB X1 27 were signed by the Governor of California on
June 29,2011,making certain changes to the Community Redevelopment Law (Part 1
(commencing with Section 33000)of Division 24 of the California Health and Safety
Code)(the "Redevelopment Law"),including adding Part 1.8 (commencing with Section
34161)("Part 1.8")and Part 1.85 (commencing with Section 34170)("Part 1.85").
B.The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of California (California Redevelopment
Association,et al.v.Matosantos,et al.(Case No.S194861))alleging that AB X1 26 and
AB X1 27 are unconstitutional.On December 29,2011,the Supreme Court issued its
opinion in the Matosantos case,largely upholding AB X1 26,invalidating AB X1 27,and
holding that AB X1 26 may be severed from AB X1 27 and enforced independently.
C.The Supreme Court generally revised the effective dates and deadlines for
performance of obligations in Part 1.85 arising before May 1,2012,to take effect four
months later.
D.As a result of the Supreme Court's decision,the Rancho Palos Verdes
Redevelopment Agency (the "Redevelopment Agency"),a redevelopment agency in the
City of Rancho Palos Verdes (the "City"),created pursuant to the Redevelopment Law,
was dissolved pursuant to Part 1.85 on February 1,2012.
E.By its Resolution No.2011-66,adopted on September 6,2011,the City
Council of the City made an election to serve as the successor agency for the
Redevelopment Agency under Part 1.85 (the "Successor Agency").
F.By its Resolution No.2012-__,adopted on February 21,2012,the City
Council,acting as the governing board for the Successor Agency,established rules and
regulations applicable to the governance and operation of the Successor Agency,and
pursuant to such resolution provided that the Successor Agency will be governed by a
Board of Directors (the "Board")consisting of the members of the City Council of the
City.
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G.Health and Safety Code Section 34170.5 provides that each successor
agency shall create within its treasury a Redevelopment Obligation Retirement Fund to
be administered by the successor agency.
H.Accordingly,the Board desires to adopt this Resolution creating a
Redevelopment Obligation Retirement Fund within the treasury of the Successor
Agency.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY HEREBY
FINDS,DETERMINES,RESOLVES,AND ORDERS AS FOLLOWS:
Section 1.The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2.This Resolution is adopted pursuant to Health and Safety Code
Section 34170.5.
Section 3.The Executive Director and the Finance Officer are hereby
authorized and directed to create within the treasury of the Successor Agency a
Redevelopment Obligation Retirement Fund to be administered by the Successor
Agency.
Section 4.The Secretary is hereby authorized and directed to file a certified
copy of this Resolution with the County Auditor-Controller.
Section 5.The officers and staff of the Successor Agency are hereby
authorized and directed,jointly and severally,to do any and all things which they may
deem necessary or advisable to effectuate this Resolution,and any such actions
previously taken by such officers are hereby ratified and confirmed.
PASSED AND ADOPTED this 21 st day of February,2012.
Chair
ATTEST:
Secretary
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