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
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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)