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HomeMy WebLinkAboutItem 3a: Resolution No. SA-5 adopting the Recongnized Obligation Payment Schedule.of DATE: TO: FROM: 0 • Development Services Department February 5, 2013 Honorable Mayor and City Council, Acting as Successor Agency to the Redevelopment Agency Jason Kruckeberg, Assistant City Manager /Development Services Director By: Jerry Schwartz, Economic Development Manager SUBJECT: ADOPT SUCCESSOR AGENCY RESOLUTION NO. SA -5 APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JULY 1, 2013, THROUGH DECEMBER 31, 2013, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(m) AND APPROVE THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2013 -2014 Recommendation: Adopt Resolution No. SA -5 and Approve the Successor Agency Administrative Budget SUMMARY As the Successor Agency to the Arcadia Redevelopment Agency, the City must prepare a Recognized Obligation Payment Schedule (ROPS) for each six month period. The ROPS sets forth the debts and payment obligations of the former Agency for the specified period. It is subject to the approval of the Successor Agency and the Oversight Board before any of the listed obligations can be paid. Additionally, at the beginning of each Fiscal Year, the Administrative Budget for the Successor Agency must be approved. The budget corresponds to the ROPS for the first six months of the new Fiscal Year. BACKGROUND The City of Arcadia chose to become the Successor Agency to the Arcadia Redevelopment Agency at the January 3, 2012, meeting. Redevelopment ended on February 1, 2012. Initially, the Successor Agency had to comply with the requirements and timeframes of Assembly Bill 1X 26, which was the bill that ended redevelopment in California. On June 27, 2012, the Governor signed AB 1484, which modified the process of dissolution. One change was to move up the timeframe for the submission of all future ROPS by 30 days, starting with the ROPS for the period of January 1 — June 30, 2013. One of the results of the earlier timeframe for the ROPS is that the Fiscal Year 2013 -14 Administrative Budget for the Successor Agency gets presented to Successor Agency and Oversight Board earlier than occurred in 2012. Successor Agency Resolution No. 5 February 5, 2013 Page 2 of 3 The ROPS is used by the Department of Finance and the Los Angeles County Auditor - Controller to determine how much will be dispersed from the tax increment trust fund to pay the enforceable obligations. The Successor Agency has previously approved three ROPS documents, which covered all of the 2012 calendar year and the first six months of 2013, in six month increments. All three documents were approved by the Oversight Board, and with slight modifications, by the State Department of Finance (DOF). In June 2012, the Successor Agency received a payment of $1.94 million from the Los Angeles County Auditor - Controller based on the approved ROPS for July 1 — December 31, 2012, and in January 2013, a check for $1.982 million for the ROPS covering January 1 — June 30, 2013. These funds are to pay the existing obligations that appear on each of those ROPS. DISCUSSION The ROPS that is included with this staff report covers the period of July 1 — December 31, 2013, reflecting the first six months of Fiscal Year 2013 -14. The administrative portion of this ROPS is based on a proposed Successor Agency administrative budget for FY 2013 -14 that is also included for approval. It reflects the maximum $250,000 administrative cap that is allowed under AB 1X 26. The ROPS additionally reflects the enforceable obligations that are part of two outstanding redevelopment bond issues, including principal and interest payments, annual audit, annual continuing obligation reports, and payments for bond trustee services. All of these payments would be required if the Redevelopment Agency was still in existence. This ROPS contains all of the items that were in the most recently approved ROPS (ROPS 3), which was already pared down from the first two ROPS. This ROPS also includes some specific items that are project - related costs. The project - related costs would be necessary to complete a potential sale of four adjoining properties to Rusnak Mercedes Benz for expansion of the dealership. These properties were detailed in the Long Range Property Management Plan which was approved by the Successor Agency at its November 20, 2012, meeting. Specific project - related costs, which are over and above the administrative costs needed to run the Successor Agency and Oversight Board, can be included on the ROPS in the period when they are likely to occur. While similar costs have not been part of the first three ROPS, they are included in this ROPS because the unwinding process is expected to reach a point during this six month period where the DOF might approve a deal between the Successor Agency and Rusnak. The administrative budget for FY 2013 -14 is similar to the budget approved for FY 2012 -13. The $250,000 administrative cap includes staff time, overhead, legal costs, office supplies, and costs to operate the Oversight Board. While the Successor Agency has been successful in operating within this limited administrative amount, it should be mentioned that when the Redevelopment Agency was in existence and active, the administrative budget was approximately $682,000. The requirement to wind down the Successor Agency Resolution No. 5 February 5, 2013 Page 3 of 3 Agency, the inability to work on any new projects, and the end of affordable housing, make it possible to operate on a limited budget, and with a much reduced level of staffing. For FY 2013 -14, the recommended staffing level remains at 1.2 FTE, which is the same as FY 2012 -13. Exhibit B shows the proposed administrative budget and staffing levels for FY 2013 -14. The specific breakdown of the itemized budget, including the details of the staffing costs will be included in the overall Development Services Department budget package for FY 2013 -14. Pursuant to Health and Safety Code Section 34177(m), the Successor Agency has prepared the ROPS for the six month period of July 1 — December 31, 2013. If approved, the ROPS will be presented to the Oversight Board at its February 12 meeting, and forwarded to the LA County Auditor - Controller, the State Controller, and the Department of Finance before the March 1, 2013, deadline. It will also be posted on the City's website. The Successor Agency budget will also be presented to the Oversight Board at the February 12 meeting. FISCAL IMPACT The proposed ROPS calls for $4,948,391 in funding for the period of July 1 — December 31, 2013. The Los Angeles County Auditor - Controller would forward funds based on this ROPS to pay the Successor Agency's continuing obligations. Under AB 1484, the payment should be forwarded on June 1, 2013. If the ROPS is not approved, the General Fund may be the source to pay for staff costs that are included in the ROPS. RECOMMENDATION Adopt Successor Agency Resolution No. SA -5 approving and adopting the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2013, through December 31, 2013, pursuant to Health and Safety Code Section 34177(m) and approve the Successor Agency administrative budget for FY 2013 -14. WEEM Dominic Lazzare e City Manager Attachments: Successor Agency Resolution No. 5 Recognized Obligation Payment Schedule (ROPS) Successor Agency Administrative Budget for Fiscal Year 2013 -14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AS THE SUCCESSOR AGENCY TO THE ARCADIA REDEVELOPMENT AGENCY, APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2013 THROUGH DECEMBER 31, 2013, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(m) WHEREAS, pursuant to Health and Safety Code Section 34173(d), on January 3, 2012, the City of Arcadia („Successor Agency„) elected to become the successor agency to the Arcadia Redevelopment Agency; and WHEREAS, Health and Safety Code Section 34177(m), was modified by the Supreme Court decision in California Redevelopment Association, of al. v. Ana Matosentos, et al., Case No. S104861, and AB 1484 requires the Successor Agency to prepare a recognized obligation payment schedule ( "ROPS ") for each six month period; and WHEREAS, Health and Safety Code Section 34177(m) requires the Successor Agency to submit the RODS to the Oversight Board for approval; and WHEREAS, Health and Safety Code Section 34177(m) requires that upon approval of the RODS by the Oversight Board, the Successor Agency is required to submit a copy of the approved RODS ( "Approved ROPS ") to the Los Angeles County Auditor - Controller, the California State Controller, and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency's website; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AS THE SUCCESSOR AGENCY TO THE ARCADIA REDEVELOPMENT AGENCY, GOES HEREBY FIND, DETERMINE ARID RESOLVE AS FOLLOWS:. SECTION 1, The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. The approval of the ROPS through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. City staff is authorized and directed to prepare a Notice of Exemption within five (5) days following the date of adoption of this Resolution.. SECTION 3. The Successor Agency hereby approves and adopts the RODS for July 1, 2013 through December 31, 2013, in substantially the form attached to this Resolution as Exhibit "A", as required by Health and Safety Code Section 34177. SECTION 4. The City Manager is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the RAPS, including submission of the ROPS to the Successor Agency's Oversight Board, and the submission of the Approved ROPS to the Los Angeles County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved BOPS on the Successor Agency's website. Pi- SECTION 5. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof, SECTION 6. This Resolution shall take effect immediately. SECTION 7. The City Clerk shall certify to the adoption of this Resolution. lassed, approved and adopted this _ day of February, 201:- all"A City Clerk APPROVED AS TO FORM: I Stephevn P. Deltsch City Attorney 3 Mayor of the City of Arcadia W � E 4 � a D f � p F a .a O r O 1 t ................ ............... ........... Vl a Q H V Q ti N M a m 0 O y N N } c E E v °I m 2 0 c u N a 0 c E `w s F- ` o 1 N 1 U 1 {6 ' v i la C '� la i m t iQ N pl 1 v C � 3 1 a 1 ?- 1 O. _ y i i pa !u Ic v aci Yt � v i e � V mo I> G1 N ! I v v v E 4 E IIa o vl,m m C) v E � I 0 x len 7U m — u o N in d I C - v C CIE '3 IN I O O O. � I•'u^�v Y c � v O Irs — m m o v mQ al m ro a w $ QM A C ! 4= E O O W m y o Eta *' ° 'w v ° v — c Yt � v i e � V v I> G1 N ! I M C E 4 E C) c c c v E I . ..I .. ! I I Up Yt � v i e � V v I> G1 N ! I M C E 4 E C) c c c v E o j p � cm Up x len 7U m — u o � I ¢ I `2 iLL -U Yt � v i e � V I I> G1 N ! I M C Iu len � I CIE '3 I o c Ll Exhibit a Successor Agency Budget — Fiscal Year 2(113-2!114 Line Item Amount Staff $175,814 Legal Services ()� 00 $20,000 Office Office Supplies $ 1 00 $1,500 r'l Liability Gene b Insurance $9,000 Workers Compensation Insurance $1,200 Vehicle maintenance $500 Oversight Board administration, financial assistance, admin, $41,0E-- Total $24$1514 *Staff Breakdown: Title Percentage of Overall Salary Assistant City Manager/Development Services Director (20%) Economic Development Manager (60%) Senior Administrative Assistant (20%) Administrative Assistant (20%) Total 12 (Full Time Equivalents)