Opinion
C085041
10-20-2020
COUNTY OF MONTEREY, as Successor Agency, etc., Plaintiff and Appellant, v. Keely BOSLER, as Director, etc. et al., Defendants and Respondents; UCP East Garrison LLC et al., Real Parties in Interest and Respondents.
Charles J. McKee, County Counsel, and Brian P. Briggs, Deputy County Counsel, for Plaintiff and Appellant. Xavier Becerra, Attorney General, Thomas S. Patterson, Senior Assistant Attorney General, Benjamin M. Glickman, Supervising Deputy Attorney General, and Anthony P. O'Brien, Deputy Attorney General for Defendants and Respondents.
Certified for Partial Publication.
Pursuant to California Rules of Court, rules 8.1105 and 8.1110, this opinion is certified for publication with the exception of parts III and IV.
Charles J. McKee, County Counsel, and Brian P. Briggs, Deputy County Counsel, for Plaintiff and Appellant.
Xavier Becerra, Attorney General, Thomas S. Patterson, Senior Assistant Attorney General, Benjamin M. Glickman, Supervising Deputy Attorney General, and Anthony P. O'Brien, Deputy Attorney General for Defendants and Respondents.
Duarte, J.
This case arises out of what we have previously characterized as the "Great Dissolution" of California's redevelopment agencies (RDAs). ( City of Azusa v. Cohen (2015) 238 Cal.App.4th 619, 622-623, 190 Cal.Rptr.3d 186.) "In 2011, the political branches of our state government decided as a matter of public policy that abuses of the redevelopment law, which constituted an ever-growing drain on state finances, required the dissolution of nearly 400 [RDAs] and the winding down of outstanding redevelopment obligations." ( City of Tracy v. Cohen (2016) 3 Cal.App.5th 852, 855, 208 Cal.Rptr.3d 128.) To this end, the Legislature enacted statutes in June 2011 that barred RDAs from entering into new obligations and provided a process for dissolving RDAs, and for ascertaining and paying their existing "enforceable obligations." ( California Redevelopment Assn. v. Matosantos (2011) 53 Cal.4th 231, 241, 250-251, 135 Cal.Rptr.3d 683, 267 P.3d 580 ( Matosantos ); City of Grass Valley v. Cohen (2017) 17 Cal.App.5th 567, 573, 226 Cal.Rptr.3d 543 ( Grass Valley ); City of Petaluma v. Cohen (2015) 238 Cal.App.4th 1430, 1434-1436, 190 Cal.Rptr.3d 703 ( Petaluma ).) The enactment of these statutes reflected a state policy to curtail perceived abuses by cities and counties creating RDAs that took property taxes away from other local agencies such as schools, police and fire protection services, and contributed to a budget crisis. ( Health & Saf. Code, § 34167, subd. (a) ; Grass Valley, supra , 17 Cal.App.5th at p. 573, 226 Cal.Rptr.3d 543 ; Petaluma, supra , 238 Cal.App.4th at p. 1434, 190 Cal.Rptr.3d 703.)
In June 2012, the Legislature enacted "clean-up" legislation to the 2011 dissolution legislation (Assem. Bill No. 1484 (2011-2012 Reg. Sess.); Stats. 2012, ch. 26). We refer to both of these laws together as the dissolution law.
Undesignated statutory references are to the Health and Safety Code.
Plaintiff County of Monterey (County) appeals from the judgment entered following the trial court's denial of its petition for writ of mandate and complaint for declaratory and injunctive relief. The County, which is the successor agency for its former RDA, challenges decisions by the Department of Finance (Department) relating to a development known as the East Garrison Project, which is part of the Fort Ord Redevelopment Project located on a closed military base in Monterey. The County claims the trial court erroneously determined that a written agreement entered into between its former RDA and a private developer (real party in interest, UCP East Garrison, LLC, hereafter UCP) was not an enforceable obligation within the meaning of the dissolution law because the former RDA did not have the authority to approve the agreement on the date the governor signed the 2011 dissolution legislation. The County further contends that the trial court erred in determining that the County failed to show the Department abused its discretion in disapproving two separate requests for funding related to administration of the East Garrison Project. The County insists that these administrative costs were expended to complete an enforceable obligation within the meaning of the dissolution law, and therefore the Department should have approved its requests for payment of such costs. Finally, the County argues that the Department's application of the dissolution law improperly impaired UCP's contractual rights.
The County filed its notice of appeal in June 2017. Briefing was completed in August 2018. The panel as presently constituted was assigned this matter in May 2020.
We reject the County's contentions and affirm the judgment. BACKGROUND
The Law Dissolving RDAs
"In the aftermath of World War II, the Legislature authorized the formation of community [RDAs] in order to remediate urban decay. [Citations.] The Community Redevelopment Law ‘was intended to help local governments revitalize blighted communities.’ [Citations.] It has since become a principal instrument of economic development, mostly for cities, with nearly 400 [RDAs] now active in California." ( Matosantos, supra, 53 Cal.4th at pp. 245-246, 135 Cal.Rptr.3d 683, 267 P.3d 580, fn. omitted.) "While [RDAs] have used their powers in a wide variety of ways, in one common type of project the [RDA] buys and assembles parcels of land, builds or enhances the site's infrastructure, and transfers the land to private parties on favorable terms for residential and/or commercial development." ( Id . at p. 246, 135 Cal.Rptr.3d 683, 267 P.3d 580.)
RDAs generally cannot levy taxes. Instead, they rely on a tax increment funding method. ( Matosantos, supra, 53 Cal.4th at p. 246, 135 Cal.Rptr.3d 683, 267 P.3d 580.) "Under this method, those public entities entitled to receive property tax revenue in a redevelopment project area (the cities, counties, special districts, and school districts containing territory in the area) are allocated a portion based on the assessed value of the property prior to the effective date of the redevelopment plan. Any tax revenue in excess of that amount—the tax increment created by the increased value of project area property—goes to the [RDA] for repayment of debt incurred to finance the project. [Citations.] In essence, property tax revenues for entities other than the [RDA] are frozen, while revenue from any increase in value is awarded to the [RDA] on the theory that the increase is the result of redevelopment." ( Matosantos, supra, 53 Cal.4th at pp. 246-247, 135 Cal.Rptr.3d 683, 267 P.3d 580.)
"The property tax increment revenue received by a [RDA] must be held in a special fund for repayment of indebtedness .... Once the entire debt incurred for a project has been repaid, all property tax revenue in the project area is allocated to local taxing agencies ...." ( Matosantos, supra , 53 Cal.4th at p. 247, 135 Cal.Rptr.3d 683, 267 P.3d 580.)
"A powerful and flexible tool for community economic development, tax increment financing nonetheless ‘has sometimes been misused to subsidize a city's economic development through the diversion of property tax revenues from other taxing entities ....’ " ( Matosantos, supra, 53 Cal.4th at p. 247, 135 Cal.Rptr.3d 683, 267 P.3d 580.) Over time, "a perception had grown that some [RDAs] were used as shams to divert property tax revenues that otherwise would fund general local governmental services, and legislative efforts were made to address these concerns." ( City of Emeryville v. Cohen (2015) 233 Cal.App.4th 293, 298, 182 Cal.Rptr.3d 578.) These concerns grew as the State's financial condition worsened. "Responding to a declared state fiscal emergency," in June 2011 the Legislature enacted legislation (Assem. Bill No. 26 (2011-2012 1st Ex. Sess.) enacted as Stats. 2011, 1st Ex. Sess. 2011-2012, ch. 5 (Assembly Bill 1X 26)) that "bars [RDAs] from engaging in new business and provides for their windup and dissolution." ( Matosantos, supra , 53 Cal.4th at p. 241, 135 Cal.Rptr.3d 683, 267 P.3d 580.)
In December 2011, our Supreme Court upheld Assembly Bill 1X 26. ( Matosantos, supra , 53 Cal.4th at pp. 274-275, 135 Cal.Rptr.3d 683, 267 P.3d 580 ) As therein described, Assembly Bill 1X 26 consisted of two principal components, codified in two new parts of the Health and Safety Code. ( Matosantos, at p. 250, 135 Cal.Rptr.3d 683, 267 P.3d 580.) "Part 1.8 ... is the ‘freeze’ component: it subjects [RDAs] to restrictions on new bonds or other indebtedness; new plans or changes to existing plans; and new partnerships, including joint powers authorities [citations]. Cities and counties are barred from creating any new [RDAs]. [Citation.] Existing obligations are unaffected; [RDAs] may continue to make payments and perform existing obligations until other agencies take over. [Citation.] Part 1.8's purpose is to preserve [RDA] assets and revenues for use by ‘local governments to fund core governmental services’ such as fire protection, police, and schools. [Citation.]
"Part 1.85 ... is the dissolution component. It dissolves all [RDAs] [citation] and transfers control of [RDA] assets to successor agencies, which are contemplated to be the city or county that created the [RDA] [citations]. Part 1.85 requires successor agencies to continue to make payments and perform existing obligations. [Citation.] However, unencumbered balances of [RDA] funds must be remitted to the county auditor-controller for distribution to cities, the county, special districts, and school districts in proportion to what each agency would have received absent the [RDAs]. [Citations.] Proceeds from [RDA] asset sales likewise must go to the county auditor-controller for similar distribution. [Citation.] Finally, tax increment revenues that would have gone to [RDAs] must be deposited in a local trust fund each county is required to create and administer. [Citations.] All amounts necessary to satisfy administrative costs, pass-through payments, and enforceable obligations will be allocated for those purposes, while any excess will be deemed property tax revenue and distributed in the same fashion as balances and assets." ( Matosantos, supra , 53 Cal.4th at pp. 250-251, 135 Cal.Rptr.3d 683, 267 P.3d 580.) The "freeze" component of Assembly Bill 1X 26 became effective immediately upon gubernatorial signature on June 28, 2011, while the dissolution component of the legislation did not become operative until after the decision in Matosantos , which lifted a judicial stay of Part 1.85 and reformed its effective date from October 1, 2011, to February 1, 2012. ( See Matosantos , 53 Cal.4th at pp. 250-251, 135 Cal.Rptr.3d 683, 267 P.3d 580 ; Grass Valley, supra, 17 Cal.App.5th at pp. 573-574, 226 Cal.Rptr.3d 543 ; City of Big Bear Lake v. Cohen (2017) 12 Cal.App.5th 922, 931, 220 Cal.Rptr.3d 31 ( Big Bear Lake ).)
Under the dissolution law, all RDAs and RDA components of community development agencies are to be eliminated. (§ 34172, subd. (a)(1).) "[A]ll authority, rights, powers, duties, and obligations previously vested with the former [RDAs], under the Community Redevelopment Law, are ... vested in ... successor agencies." (§ 34173, subd. (b).) Here, the County acts as successor agency to its former RDA. (§§ 34171, subd. (j), 34173.) Successor agencies are obligated to "[c]ontinue to make payments due for enforceable obligations" (§ 34177, subd. (a)) and to "[e]xpeditiously wind down the affairs of the [RDA]" under "the direction of the oversight board" (§ 34177, subd. (h)). The oversight board consists of appointed members and has "fiduciary responsibilities to holders of enforceable obligations." (§ 34179, subds. (a) & (i).) Enforceable obligations include loans borrowed by the former RDA and any existing legally binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy (§ 34171, subd. (d)(1)(B) & (E)), but do not include any agreements or contracts between the city or county that created the RDA and the former RDA (id . subd. (d)(2)). To obtain funds to make payments required by enforceable obligations, a successor agency must periodically prepare recognized obligation payment schedules (ROPS) setting forth the minimum payment amounts for each enforceable obligation and identify one or more sources of payment, and submit the ROPS to the oversight board for approval. (§§ 34171, subds. (g) & (h), 34177, subd. (l)(1).) Following the oversight board's approval, the successor agency must submit the ROPS to the Department for its approval. (§ 34177, subds. (m)(1) & (o)(1).) The Department then makes "its determination of the enforceable obligations and the amounts and funding sources of the enforceable obligation." (Ibid. ) A successor agency or oversight board cannot restore funding for an enforceable obligation that was denied or reduced by the Department. (§ 34178, subd. (c).) Each county auditor-controller takes the property tax proceeds (the tax increment) that would have gone to the former RDA and places such money in a redevelopment property tax trust fund (the trust fund). (§ 34172, subd. (d).) Money in the trust fund is used to pay the former RDA's required contributions to schools, enforceable obligations approved on a ROPS, and administrative costs. (§ 34183, subd. (a)(1)-(a)(3).) Any remaining money is distributed to local taxing entities. (§ 34183, subd. (a)(4).)
Successor agencies were initially required to prepare a ROPS for each six-month fiscal period from January 1, 2012, through June 30, 2016. Thereafter, successor agencies are only required to prepare a ROPS for each fiscal year. (§§ 34171, subd. (h), 34177, subds. (a)(1), (l)(1), (m)(1) & (o)(1).)
A successor agency may seek judicial review when the Department disapproves the inclusion of items proposed as enforceable obligations in a ROPS. ( Grass Valley, supra, 17 Cal.App.5th at pp. 574-575, 226 Cal.Rptr.3d 543.)
The East Garrison Project
Fort Ord was a military base that closed in 1994. After the closure of Fort Ord, the County obtained title to a portion of the former base and, in 2002, adopted the Fort Ord Redevelopment Plan.
In October 2005, the County granted its former RDA an interest in real property known as "Track 0" of the East Garrison of the Fort Ord Redevelopment Area. At the same time, the County adopted the East Garrison Specific Plan and approved a vesting map and development agreement for the redevelopment of Track 0 of the East Garrison, which is known as the East Garrison Project. In addition, the County's former RDA entered into a Disposition and Development Agreement (2005 DDA) with a private developer, East Garrison Partners, LLC (East Garrison Partners), for the development of the East Garrison Project, which is a mixed-use development of dwelling units (including low and moderate income housing), commercial space, parks, and public facilities (e.g., fire station). Under the terms of the 2005 DDA, East Garrison Partners agreed to pay the former RDA $1,500,000 as initial payment for the purchase of the East Garrison Project area, plus additional payments from proceeds from the development of that project. In exchange, the former RDA agreed to pledge tax increment produced by the "Project," including costs of administering the "Project Area," and for the development of specific portions of the Project, including public improvements and facilities. As relevant here, the amount of tax increment pledged included: (1) up to $300,000 annually for costs of administering the Project Area, with a fixed escalation of three percent (3%) per year; and (2) up to $9.5 million for affordable housing.
The 2005 DDA does not define "Project" or "Project Area." The agreement describes the general location of "The Redevelopment Project Area." It refers to the redevelopment area comprising the East Garrison Project as the "Site," and states that the developer (East Garrison Partners) "intends to serve as the land development entity and intends to build out all major infrastructure and obtain all land use and Development Approvals for the Site." In its opening brief, the County asserts that, "The precise language of the [2005] DDA requires tax increment to be used to cover the administration costs for Agency tasks performed within the ‘Redevelopment Project Area,’ which covers the entire area subject to the Fort Ord Redevelopment Plan including Track 0 of East Garrison" (i.e., the Site). In the trial court, the County represented that the annual $300,000 pledge of tax increment was to be used "to cover the Agency's costs of administering the Redevelopment Project (including the 2005 DDA)."
Due to the great recession, East Garrison Partners invoked an "enforced delay" clause in the 2005 DDA in May 2008. In November 2008, the former RDA accepted the enforced delay. After East Garrison Partners defaulted on loan obligations to a third-party, a new developer, real party in interest UCP, purchased the defaulted loan in September 2009. However, it was not until June 28, 2011 (i.e., the day the governor signed Assembly Bill 1X 26) that the former RDA approved the first implementation agreement (FIA), in which UCP, with certain exceptions not relevant here, assumed all the rights and obligations of East Garrison Partners in the 2005 DDA. Under the terms of the FIA, the former RDA's duties with respect to the 2005 DDA did not change.
In January 2012, the County adopted a resolution stating its intent to serve as the successor agency to its former RDA upon dissolution of the former RDA. In February 2012, the former RDA was dissolved by operation of law and the County assumed all the rights, powers, assets, liabilities, duties, and obligations of its former RDA. (See Matosantos , 53 Cal.4th at pp. 250-251, 135 Cal.Rptr.3d 683, 267 P.3d 580.)
Disputed ROPS Claims
For the six-month fiscal period ending in June 2016 (ROPS 15-16B), the Department disapproved two items proposed as enforceable obligations in the ROPS submitted by the County: (1) $408,490 for the building of public facilities for the East Garrison Project; and (2) $150,000 for administrative costs for the East Garrison Project. In disapproving the first item, the Department explained that while the 2005 DDA was a valid agreement that entitled the former RDA to assign it to a new developer due to a default by the initial developer, the FIA, which represented the former RDA's attempt to assign the 2005 DDA to a new developer, was invalid because it was entered into after the freeze component of the dissolution law took effect on June 28, 2011. The Department, however, noted that the County could assign the 2005 DDA to a new developer, as the 2005 DDA required the former RDA not to unreasonably withhold its consent to assign the agreement in the event of a default. The Department explained that any future assignment of the agreement must comply with the requirements of section 34181, subdivision (e); that is, the assigned agreement must increase the taxing entities’ net revenues, decrease their liabilities, and be in their best interests (as determined by the oversight board). In disapproving the second item (i.e., the request for administrative costs), the Department provided the following explanation: "The [County] is claiming administrative costs for the [2005] DDA in the amount of $150,000 for ROPS 15-16B under Section 205 (1) of the [2005] DDA and DDA Attachment 4. However, these sections do not require the [County] to expend $300,000 annually for specific project costs. In fact, the administrative costs referred to in these sections refer to costs of administering the Redevelopment Project Area as a whole. Thus, under this section the [County] is only entitled to actual annual costs associated with administering the Redevelopment Project Area. Under Dissolution Law, this cost is capped under the Administrative Cost Allowance. Thus, under the 2005 DDA the [County] is not entitled to $150,000 for each ROPS period in addition to the allowed ACA distribution."
For the one-year fiscal period ending in June 2017 (ROPS 16-17), the Department disapproved two items proposed as enforceable obligations in the ROPS submitted by the County: (1) $2,074,247 for the building of public facilities for the East Garrison Project; and (2) $300,000 for administrative costs for the East Garrison Project. The Department denied these items for the same reasons it denied the items in ROPS 15-16B. However, it noted, again, that the 2005 DDA could be assigned to a new developer provided that the assignment complied with the requirements of section 34181, subdivision (e).
Writ Petition
In June 2016, the County petitioned for a writ of mandate, claiming that the Department improperly disapproved legitimate enforceable obligations relating to the East Garrison Project in ROPS 15-16B and ROPS 16-17. According to the County, the effect of the Department's actions is to prohibit the County from receiving funds to fulfill its enforceable contractual obligations to UCP, which jeopardizes the completion of the East Garrison Project. Among other things, the County sought a writ of mandate (1) directing the Department to recognize the disapproved items on ROPS 15-16B and ROPS 16-17 as legitimate enforceable obligations, and (2) directing the Monterey County auditor-controller to distribute funds from the trust fund to allow the County to pay those obligations. In seeking this relief, the County claims that the Department erroneously concluded that the FIA does not constitute an enforceable obligation on the basis that the former RDA lacked the authority to enter into the agreement on the date the governor signed Assembly Bill 1X 26. The County requested a declaration that the FIA is an enforceable obligation.
Amended and Restated First Implementation Agreement
After the writ petition was filed, the County and UCP entered into the Amended and Restated First Implementation Agreement to the Disposition and Development Agreement (ARFIA) in August 2016. Under the terms of this agreement, UCP assumed, with certain exceptions not relevant here, the duties and obligations of East Garrison Partners under the 2005 DDA, and the County's financial commitment (i.e., amount of tax increment pledged) remained the same with one exception: the tax increment pledged to the East Garrison Project for affordable housing was reduced from a "not to exceed" amount of $9.5 million to a "not to exceed" amount of $8.5 million. In September 2016, the oversight board approved the ARFIA, finding that it was "in the best interests of the affected taxing entities that the East Garrison Project be completed as soon as possible." In October 2016, the Department approved the ARFIA. In doing so, the Department concluded that the agreement complied with all the requirements of section 34181, subdivision (e).
Amended ROPS Claim
For the six-month fiscal period ending in June 2017, the County submitted an amended ROPS (ROPS 16-17B) pursuant to section 34177, subdivision (o)(1)(E). Relying on the newly approved ARFIA, the County requested $1,625,000 for the building of public facilities for the East Garrison Project, and $150,000 for administrative costs for the East Garrison Project. In November 2016, the Department approved the request for the building of public facilities but denied the request for administrative costs. In denying the request for administrative costs, the Department determined that this item was not an enforceable obligation.
The Trial Court's Ruling
In the trial court, the County argued that the Department improperly disapproved ROPS funding for public facilities related to the East Garrison Project on the ground that the FIA was void. The County further argued that the Department improperly disapproved ROPS funding for administrative costs related to the East Garrison Project on the ground that such costs were not an enforceable obligation under the dissolution law. The trial court disagreed with the County, ruling that the FIA was not an enforceable obligation, since it was not entered into before the freeze component of Assembly Bill 1X 26 took effect on June 28, 2011. The trial court also ruled that the County had failed to carry its burden to show that the Department abused its discretion in disapproving funds to pay for costs incurred to administer the East Garrison Project. DISCUSSION
The trial court rejected the Department's contention that the execution of the ARFIA rendered the issue of whether the FIA is an enforceable obligation moot, reasoning that the ARFIA altered the terms of the FIA by "reduc[ing] the amount of the potential enforceable obligation of the former RDA by $1 million to appease [the Department], and [the County] contends that [the Department] conditioned its approval of the future assignment of the 2005 DDA on a reduction of the pledge of tax increment through the [ARFIA]." As noted above, under the terms of the ARFIA, UCP largely assumed the duties and obligations of East Garrison Partners under the 2005 DDA, and the County's financial commitment to the East Garrison Project for affordable housing was reduced from a "not to exceed" amount of $9.5 million to a "not to exceed" amount of $8.5 million. On appeal, neither party challenges the trial court's mootness determination.
I
Standard of Review
When, as here, the facts are undisputed, we independently review questions of statutory construction, contract interpretation, and constitutional law. ( City of San Jose v. Sharma (2016) 5 Cal.App.5th 123, 134, 209 Cal.Rptr.3d 420 ; Petaluma, supra , 238 Cal.App.4th at pp. 1438-1439, 190 Cal.Rptr.3d 703.)
II
Whether the FIA was an Enforceable Obligation
The County contends the trial court erroneously determined that the FIA was not an enforceable obligation because it was not executed prior to the date the freeze component of the dissolution law, Assembly Bill 1X 26, took effect. According to the County, the FIA is a valid and enforceable agreement because, even though it was entered into on the same date the governor signed Assembly Bill 1X 26, it was executed prior to the time the governor signed the law in the late afternoon on June 28, 2011. We disagree.
Assembly Bill 1X 26, which dissolved RDAs, appropriated $500,000 to the Department from the General Fund for administrative costs associated with the act and declared that it is a budget-related bill. (Stats. 2011, 1st Ex. Sess. 2011-2012, ch. 5, § 11.) Section 16 of the act provides: "This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately." (Stats. 2011, 1st Ex. Sess. 2011-2012, ch. 5, § 16.) Thus, Assembly Bill 1X 26 became effective immediately upon gubernatorial signature on June 28, 2011. ( Grass Valley, supra, 17 Cal.App.5th at p. 573, 226 Cal.Rptr.3d 543 ; Cal. Const., art. IV, § 12, subd. (e)(1) ["the budget bill and other bills providing for appropriations related to the budget bill ... take effect immediately upon being signed by the Governor or upon a date specified in the legislation"].)
As added by Assembly Bill 1X 26, section 34161 provides: "Notwithstanding Part 1 (commencing with Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with Section 34050), and Part 1.7 (commencing with Section 34100), or any other law, commencing on the effective date of this part , no agency shall incur new or expand existing monetary or legal obligations except as provided in this part. All of the provisions of this part shall take effect and be operative on the effective date of the act adding this part." (Italics added.) Various other statutory provisions added by Assembly Bill 1X 26 specifically prohibit an agency from engaging in certain activities, "commencing on the effective date of this part." (See e.g., § 34162 [incur indebtedness]; § 34163, subd. (a) [make loans or enter into agreements to provide funds or financial assistance to any entity or person]; § 34164 [engage in specified redevelopment activities].) As part of the "clean-up" legislation enacted in June 2012, section 34177.3 was added to the Health and Safety Code. (Stats. 2012, Reg. Sess. 2011-2012, ch. 26 § 12.) This section expressly prohibits successor agencies from "creat[ing] new enforceable obligations or begin[ing] redevelopment work, except in compliance with an enforceable obligation ... that existed prior to June 28, 2011 ." (§ 34177.3, subd. (a), italics added.)
In Big Bear Lake , a panel of this court recently concluded that a contract between a city's former RDA and a private contractor for professional services related to several construction projects did not create an enforceable obligation because the contract, which was signed on June 28, 2011, was executed after the freeze component of the dissolution law took effect. ( Big Bear Lake, supra, 12 Cal.App.5th at p. 931, 220 Cal.Rptr.3d 31.)
The County does not dispute that Assembly Bill 1X 26 took effect immediately upon gubernatorial signature. Instead, the County insists that the FIA created an enforceable obligation because it was executed several hours before the governor signed the law. In other words, the County urges us to conclude that Assembly Bill 1X 26 took effect at the precise moment it was signed by the governor, and therefore any contract entered into prior to that time, even if it was executed on the day the law took effect, created an enforceable obligation. In the County's view, Big Bear Lake is distinguishable because the opinion does not discuss whether the contract at issue in that case was executed before or after the governor signed Assembly Bill 1X 26. The County, however, has not cited any authority persuading us that its position is correct and our own research has located none. Having reviewed the language of the dissolution law and finding no contrary intention expressed by the Legislature, we conclude that Assembly Bill 1X 26 was effective for the entire calendar day of June 28, 2011. (See Estate of Cirone (1984) 153 Cal.App.3d 199, 202-203, 200 Cal.Rptr. 511 [concluding that Proposition 6 applied for the entire day of its passage, reasoning that, in the absence of an expressed contrary intent, when a Proposition indicates that it became operative from the "date of passage" it should be given its ordinary meaning of the entire day rather than the moment it was passed]; Anderson v. State Personnel Bd. (1980) 103 Cal.App.3d 242, 248, 162 Cal.Rptr. 865 ["The word ‘date’ in its common and accepted statutory meaning refers simply to the day, month and year"].) III–IV
See footnote *, ante .
DISPOSITION
The judgment is affirmed. Costs on appeal are awarded to defendants. (See Cal. Rules of Court, rule 8.278 (a).)
We deny the pending request for judicial notice because the proffered material is unnecessary to our decision. (Grass Valley, supra, 17 Cal.App.5th at pp. 594, fn. 13, 226 Cal.Rptr.3d 543.) We also deny the County's pending request to strike portions of the respondent's brief that reference a case ordered depublished by our Supreme Court. We note the County first cited that case in its briefing; the Department was merely responding and noting the case's subsequent depublication. Further, we are capable of ignoring an opinion that is not citable authority. (Cal. Rules of Court, rule 8.1115.)
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We concur:
Blease, Acting P. J.
Retired Associate Justice of the Court of Appeal, Third Appellate District, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution