HomeMy WebLinkAbout098-2012SARESOLUTION NO.98- 2012SA
AUTHORIZING THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY
DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE TO PAY THE
DEMAND RECEIVED FROM THE COUNTY AUDITOR - CONTROLLER
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34183.5(b)(2)
WHEREAS, ABx1 26 (the "Dissolution Act ") was enacted on June 28, 2011. That bill, as
upheld by the California Supreme Court, dissolved all redevelopment agencies in the
State of California and required a successor agency be designated to oversee the
dissolution of the former redevelopment agencies; and
WHEREAS, on January 10, 2012, acting in accordance with Health and Safety Code
Sections 341710) and 34173, the Danville Town Council adopted Resolution No. 6 -2012,
accepting the designation to serve as the Successor Agency to the former Community
Development Agency of the Town of Danville (the "Successor Agency "); and
WHEREAS, on June 27, 2012, the Governor signed into law AB 1484. That bill amends
provisions of ABx1 26; and
WHEREAS, AB 1484 adds a new section to the Dissolution Act, Health and Safety Code
Section 34183.5. Section 34183.5 provides a mechanism for the State of California and
county auditor - controllers to demand repayment of amounts paid to redevelopment
agencies as tax increment in December 2011, with such amounts being redistributed to
affected taxing entities; and
WHEREAS, Section 34183.5(b)(2) provides that each county auditor - controller must
present any demands to successor agencies by July 9, 2012 and that any amounts
demanded must be paid by the successor agencies by July 12, 2012. Failure to pay in
full by that date leads to a civil penalty of 10% plus an additional 1.5% per month to be
added to the demand amount; and
WHEREAS, on July 9, 2012, the Successor Agency received a Section 34183.5(b)(2)
demand from the Contra Costa County Auditor - Controller demanding payment of
$1,056,198.80 by July 12; and
WHEREAS, the demand by the County Auditor - Controller is based on guidance
developed internally by the California Department of Finance and the Successor
Agency has informed the Department of Finance and the County Auditor - Controller
that it believes this guidance is inconsistent with Section 34183.5; and
WHEREAS, while the Successor Agency disputes the legal interpretation of the law
being used by the Department of Finance, there is no prudent option other than to make
the payment due to the lack of a meaningful appeal process, the short time allowed to
make the payment and the severe fines which would accrue if the demand is not paid in
full; now, therefore, be it
RESOLVED, that the Danville Town Council, acting as the Successor Agency to the
former Community Development Agency of the Town of Danville, authorizes payment,
under protest, to the Contra Costa County Auditor - Controller an amount not to exceed
$1,056,198.80 in order to satisfy in full the amount demanded by the Auditor - Controller
pursuant to Health and Safety Code Section 34183.5(b)(2); and, be it further
RESOLVED, that the Danville Town Council, acting as the Successor Agency to the
former Community Development Agency of the Town of Danville, hereby appropriates
the funds necessary to make this payment, including $1,056,198.80 advanced to the
Successor Agency by the Town of Danville pursuant to Town Council Resolution No.
99 -2012.
APPROVED by the Danville Town Council, acting as the Successor Agency to the
former Community Development Agency of the Town of Danville, at a special meeting
on July 10, 2012, by the following vote:
AYES: Arnerich, Doyle, Stepper, Storer
NOES: None
ABSTAINED: None
ABSENT: None
APPROVED AS TO FORM:
CITY ATTORNEY
PAGE 2 OF RESOLUTION NO. 98- 2012SA