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Home My WebLink AboutItem 7.2 Dissolve Dublin Housing Authority STAFF REPORT CITY CLERK File #430-90 CITY COUNCIL DATE:April 16, 2013 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Resolution “Dissolving” the Dublin Housing Authority Prepared by John Bakker, City Attorney EXECUTIVE SUMMARY: The Dublin Housing Authority (DHA) was created to own and manage the Arroyo Vista Housing Project. When the Arroyo Vista redevelopment transaction was executed, DHA transferred all of its assets to the Housing Authority of Alameda County with the expectation that DHA would be “dissolved” after the statutorily required two-year period of non-action. More than two years have passed since DHA has transacted any business or exercised any powers, and the City Council is being asked to adopt a resolution terminating DHA’s authority to transact business and to exercise its powers and vacating the offices of DHA’s commissioners. This action would effectively dissolve DHA. FINANCIAL IMPACT: None. RECOMMENDATION: Resolution Staff recommends that the City Council adopt declaring that the Dublin Housing Authority shall not transact any business, that it shall not exercise its powers under the Housing Authorities Law, and that the Offices of the Dublin Housing Authority Commissioners are vacated. Submitted By Reviewed By City Attorney Assistant City Manager DESCRIPTION: Arroyo Vista was, until recently, a public housing development on approximately 22.9 acres of land located at 6700 Dougherty Road and owned by the Dublin Housing Authority. On July 25, 2007, the City of Dublin, the Dublin Housing Authority (DHA), the Alameda County Housing Authority (HACA), Eden Housing and Citation Homes entered into a Disposition and ITEM NO. 7.2 Page 1 of 2 Development Agreement (DDA) for the purpose of creating a new mixed income development on the site. On March 1, 2011, pursuant to the terms of the DDA, Eden Housing and Citation took title to their respective portions of the Arroyo Vista property. Subsequently, Citation assigned its interests in the property to KB Home. Pursuant to those previous agreements, KB Home and Eden Housing are in the midst of developing the former Arroyo Vista property. The Arroyo Vista project was DHA’s only substantial asset, and DHA’s reason for being. Thus, in conjunction with the Arroyo Vista redevelopment project, and DHA’s disposition of it, DHA assigned to HACA, and HACA assumed, all of DHA’s assets and obligations. When those assignments and assumptions took place in March of 2011, it was anticipated that, after DHA was dormant for two years, the City Council would take action to terminate DHA’s powers. State law creates a housing authority in each city and county and specifies that the housing authority shall not transact any business or exercise its powers unless the governing body of the county or city declares that there is need for an authority to function in it. In 1985, the City Council, by Resolution No. 101-85, made such a declaration. State law also provides that if a housing authority fails to transact any business or exercise any of its powers for a period of two years or more, the City Council may adopt a resolution declaring that the authority shall not transact any business or exercise its powers under this chapter, and that the offices of the authority commissioners are vacated. The attached resolution (Attachment 1) would make such a declaration. If the resolution is enacted, DHA would be effectively dissolved. If there were ever a need for a housing authority in Dublin again, the City Council could declare by resolution that there is a need for an authority to function in the City. If the City Council did so, the housing authority would again be able to transact business and exercise its powers. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None required. ATTACHMENTS: 1. Resolution declaring that the Dublin Housing Authority shall not transact any business, that it shall not exercise its powers under the Housing Authorities Law, and that the offices of the Dublin Housing Authority Commissioners are vacated Page 2 of 2 RESOLUTION NO. XX - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * DECLARING THAT THE DUBLIN HOUSING AUTHORITY SHALL NOT TRANSACT ANY BUSINESS, THAT IT SHALL NOT EXERCISE ITS POWERS UNDER THE HOUSING AUTHORITIES LAW, AND THAT THE OFFICES OF THE DUBLIN HOUSING AUTHORITY COMMISSIONERS ARE VACATED WHEREAS, state law creates a housing authority in each city and county and specifies that the housing authority shall not transact any business or exercise its powers unless the governing body of the county or city declares that there is need for an authority to function in it. WHEREAS, on September 9, 1985, the City Council adopted Resolution No. 101-85 thus declaring the need for the Dublin Housing Authority to function (the "Housing Authority"); and WHEREAS, after the lapse of two years after the adoption of such a resolution, and after the City Council finds that the Housing Authority has failed to transact any business or exercise any of its powers, the City Council is permitted by California Health and Safety Code section 34245 to adopt a resolution declaring that the Housing Authority shall not transact any business or exercise its powers, and that the offices of the Housing Authority commissioners are vacated; and WHEREAS, on March 1, 2011, the Housing Authority entered into an agreement with the Housing Authority of the County of Alameda ("HACA") wherein HACA assumed all of the Housing Authority's obligations and responsibilities; and WHEREAS, on March 4, 2011, the Housing Authority transferred its interest in the property located at 6700 Dougherty Road in the City of Dublin (the "Arroyo Vista Property"); and WHEREAS, on March 1, 2011, all of the contracts to which the Housing Authority was a party were assigned to HACA including those related to the redevelopment of the Arroyo Vista Property; and WHEREAS, on March 1, 2011, HACA assumed all of the Housing Authority's obligations and debts related to the issuance of previously-issued bonds; and WHEREAS, on March 1, 2011, the Housing Authority transferred all of its non- real property to HACA; and WHEREAS, on March 1, 2011, the management agreement entered into between the Housing Authority and HACA on September 22, 1986 was terminated; and WHEREAS, the Housing Authority has no assets, real or personal property, or outstanding contracts; and WHEREAS, the Housing Authority has not held any meetings or conducted any business in over two years; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin as follows: 1. The City Council hereby finds that the above recitals are true and accurate and that the Housing Authority has failed to transact any business or exercise any of its powers in over two years. 2. Accordingly, the Housing Authority shall not transact any business or exercise its powers under the Housing Authorities Law and that the offices of its commissioners are vacated. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this 16th day of April, 2013, by the following vote: AYES : NOES : ABSENT : ABSTAIN : ______________________________ Mayor ATTEST : _________________________________ City Clerk 2058440.1