As a result of Assembly Bill X1 26 (Blumenfield)(“AB 26”), which was signed by the Governor on June 28, 2011 and confirmed by the Supreme Court (California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861)) on December 29, 2011, all California redevelopment agencies were effectively dissolved on February 1, 2012 and successor entities became responsible for winding down the affairs of the former redevelopment agencies. Consistent with the provisions of AB 26, on January 9, 2012, by minute order the City Council confirmed the City Council’s election to serve in the capacity of the Successor Agency to the Woodlake Redevelopment Agency (the “Successor Agency”). Therefore, the Successor Agency is now responsible for winding down the affairs of the former Woodlake Redevelopment Agency consistent with the applicable provisions of the California Health and Safety Code.
Per Health and Safety Code § 34177, successor agencies are required to do all of the following:
|1.||Continue to make payments due for enforceable obligations;|
|2.||Maintain reserves in the amount required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds;|
|3.||Perform obligations required pursuant to any enforceable obligation;|
|4.||Remit unencumbered balances of redevelopment agency funds to the county auditor-controller for distribution to the taxing entities;|
|5.||Dispose of assets and properties of the former redevelopment agency as directed by the oversight board;|
|6.||Enforce all former redevelopment agency rights for the benefit of the taxing entities, including, but not limited to, continuing to collect loans, rents, and other revenues that were due to the redevelopment agency;|
|7.||Effectuate transfer of housing functions and assets to the appropriate entity designated pursuant to Health and Safety Code § 34176;|
|8.||Expeditiously wind down the affairs of the redevelopment agency pursuant to the provisions of Part 1.85 of the Health and Safety Code and in accordance with the direction of the oversight board;|
|9.||Continue to oversee development of properties until the contracted work has been completed or the contractual obligations of the former redevelopment agency can be transferred to other parties;|
|10.||Prepare a proposed administrative budget and submit it to the oversight board for its approval; and|
|11.||Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor-controller for each six-month fiscal period.|
As noted above, the Successor Agency’s first enumerated responsibility is to continue to make payments due for enforceable obligations. On or after February 1, 2012, and until a Recognized Obligation Payment Schedule (“ROPS”) becomes operative, only payments required pursuant to an Enforceable Obligations Payment Schedule (“EOPS”) shall be made. Until the adoption of its own EOPS, the Successor Agency’s initial EOPS shall be the last version adopted by the former Woodlake Redevelopment Agency. (By resolution 12-04, the ROPS was approved by the City Council on February 13, 2012.)
Approval of the EOPS will ensure that the Successor Agency has the authority to continue to pay its enforceable obligations until the ROPS becomes operative. The recommended action does not, in itself, cause any new financial obligations.
Enforceable Obligation Payment Schedule
As required by Health and Safety Code § 34169, the City of Woodlake’s Redevelopment Agency has adopted an Enforceable Obligation Payment Schedule.