RESOLUTION NO. 2025-04
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE HAWTHORNE REDEVELOPMENT AGENCY, APPROVING AN AMENDMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND HARRIS & ASSOCIATES TO PROVIDE THE SUCCESSOR AGENCY WITH VARIOUS SERVICES ASSOCIATED WITH SUCCESSOR AGENCY REPORTING REQUIREMENTS.
 

Staff recommends the Adoption of Resolution No. 2025-04, approving an Amendment Agreement between the Successor Agency and Harris & Associates to provide the Successor Agency with various services associated with Successor Agency reporting requirements.

Staff is recommending that the Successor Agency enter into an amendment agreement with Harris & Associates to provide various services. Specifically, Harris & Associates has proposed providing services related to tax revenue sharing reporting to the Successor Agency.

Regulation 1808, adopted by the California Department of Tax and Fee Administration (“CDTFA”), requires every local agency to electronically complete and submit a tax revenue sharing agreement reporting form to the CDTFA by April 30 of each year to report the tax revenue sharing agreement information required to be reported by Revenue and Taxation Code (“RTC”) section 7213 for the immediately preceding fiscal year. Harris identified this reporting to apply to:

1) The Gateway Center Disposition and Development Agreement (“DDA”). The DDA requires rebates of tax increment, sales tax, and transient occupancy tax revenues used for payment of debt service on the CFD 1999-1 2010 Special Tax Refunding Bonds and for repayment of the Agency Note debt assumed by the Hawthorne Community Redevelopment Agency to incentivize private improvements to public infrastructure in the Gateway development.

2) The Oceangate Owner Participation Agreement (“OPA”). The Hawthorne Community Redevelopment Agency entered the OPA, which requires sales tax and tax increment rebates to property owners in the OPA project area, to redevelop certain parcels for commercial purposes and fund public improvements.

The successful completion of this work will ensure compliance with the CDTFA’s Regulation 1808.

The Successor Agency and Harris & Associates originally entered into an agreement effective April 7, 2025, for Harris to provide reporting services to the Successor Agency. That agreement established a contract term of April 7, 2025, through June 30, 2025, and a total compensation of a fee not to exceed $10,000.

Harris & Associates is proposing an amendment to extend the contract term from June 30, 2025 to June 30, 2030. This will align the contract year more closely with the schedule for the scope of work while avoiding any gaps in service.

Harris & Associates proposes an annual flat fee between $7,500 and $8,800 for services provided between Fiscal Years 2025-26 and 2029-30, as detailed in Exhibit A. The total contract amount would increase to $50,600, of which $40,600 corresponds to services provided between Fiscal Years 2025-26 and 2029-30. The City’s General Fund will not be responsible for any of the costs associated with this reporting requirement and associated services.  

Health & Safety Code Section 34177(j)(3) requires proposals for arrangements for administrative and operations services provided by a city, county, or other entity to be submitted to the oversight board for its approval. 

Staff recommends approval of Resolution No. 2025-04 approving the agreement between the Successor Agency and Harris & Associates and further authorizing the Executive Director to execute said agreement and any amendments thereto
 

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None to the General Fund. 

72 hours posted notice pursuant to the Ralph M. Brown Act