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HomeMy WebLinkAboutItem 3a - Successor Agency Resolution No. SA-8 (ROPS)STAFF REPORT Development Services Department DATE: February 4, 2014 TO: Honorable Mayor and City Council, Acting as the Successor Agency to the Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director By: Jerry Schwartz, Economic Development Manager SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA -8 APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JULY 1, 2014, THROUGH DECEMBER 31, 2014, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(m), AND APPROVE THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2014 -15 Recommendation: Adopt 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 Arcadia Redevelopment 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. The Successor Agency is complying with two bills that impact the unwinding process, including the timing of the ROPS and the Successor Agency Administrative Budget. The two bills are AB 1X 26 and AB 1484, which were signed into law in June 2011 and June 2012 respectively. 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 five Successor Agency Resolution SA — 8 February 4, 2014 Page 2 of 3 ROPS documents, which covered all of the 2012 and 2013 calendar years and the first six months of 2014, in six months increments. All five documents were approved by the Oversight Board, and with slight modifications, by the State Department of Finance (DOF). In June 2013, the Successor Agency received a payment of $2.478 million from the Los Angeles County Auditor - Controller based on the approved ROPS for July 1 — December 31, 2013, and in January 2014, a check for $1.833 million for the ROPS covering January 1 — June 30, 2014. 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, 2014, reflecting the first six months of Fiscal Year 2014 -5. The administrative portion of this ROPS is based on a proposed Successor Agency administrative budget for FY 2014 -15 that is also included for approval. With the success of the unwinding process, staff is spending less time on Successor Agency activities than it did when the process was more complex and the Oversight Board met often. As a result, the administrative budget includes reduced staffing, dropping from 1.2 Full Time Equivalent (FTE) Positions to 0.8 FTE. The Successor Agency's total budget, which in the past two years was $248,514 per fiscal year, has been reduced to $176,750 for FY 2014 -15. The administrative budget for FY 2014 -15 includes staff time, overhead, legal costs, office supplies, and costs to operate the Oversight Board. The proposed breakdown of the administrative budget and staffing levels are shown in Exhibit A. These details will be included in the overall Development Services Department budget package for FY 2014 -15. 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 is pared down from the past two ROPS because all of the costs to demolish the two Santa Anita Avenue buildings and to complete the escrow with Rusnak are no longer included since those benchmarks have been reached. The one item that will be included again is the request for $1 million as part of the accrual to meet the January 2015 obligation to the Campus Commons affordable housing complex developers. This will be the third time that the $1 million request has been included on the ROPS. The first two times, the DOF approved it without any changes. The amount that has accrued for this purpose has been based on payments from the Los Angeles County Auditor - Controller, which have been less than what was approved on the ROPS. Successor Agency Resolution SA — 8 February 4, 2014 Page 3 of 3 If approved, the ROPS will be presented to the Oversight Board at its February 18 meeting, and forwarded to the Department of Finance, the State Controller, and the LA County Auditor - Controller before the March 1, 2014, deadline. It will also be posted on the City's website. The Successor Agency administrative budget will also be presented to the Oversight Board at the February 18 meeting. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The ROPS and Successor Agency Administrative Budget are exempt from the California Environmental Quality Act under Section 15061(b)(3) because they are considered to be "not a project ". FISCAL IMPACT The proposed ROPS calls for $2,505,549 in funding for the period of July 1 — December 31, 2014. The Los Angeles County Auditor - Controller would forward funds based on this ROPS to pay the Successor Agency's continuing obligations. The payment should be forwarded June 2, 2014. 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 It is recommended that the City Council, acting as the Successor Agency to the Arcadia Redevelopment Agency, adopt Successor Agency Resolution No. SA -8 approving and adopting the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2014, through December 31, 2014, pursuant to Health and Safety Code Section 34177(m), and approve the Successor Agency Administrative Budget for FY 2014 -15. Approved: Dominic Lazza City Manager Attachments: Successor Agency Resolution No. SA - 8 Exhibit A: Successor Agency Administrative Budget for Fiscal Year 2014 -15 RESOLUTION NO. SA - 8 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, 2014 THROUGH DECEMBER 31, 2014, 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, et al. v, Ana Matosantos, et al., Case No. S194861, 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 ROPS to the Oversight Board for approval; and WHEREAS, Health and Safety Code Section 34177(m) requires that upon approval of the ROPS by the Oversight Board, the Successor Agency is required to submit a copy of the approved ROPS ( "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, DOES HEREBY FIND, DETERMINE AND 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 ROPS for July 1, 2014 through December 31 2014, 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 ROPS, including submission of the BOPS to the Successor Agency's Oversight Board, and the submission of the Approved BOPS to the Los Angeles County Auditor - Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency's website. 2 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. Passed, approved and adopted this day of February, 20 ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 3 Mayor of the City of Arcadia EXHIBIT "A" THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE [Attached behind this page] cn EL O m a uo a � N O m o "a E v m m o 5 v L � Q V L3 O a m r 4 Y. v o a°� Q O d N 0 4� m a o O Em d o c o .Erlry Z Q a Z N o° m O f/j C C LL p C LL J ll � N F O � n� m - � oa as m y `o z EZ v m ni m v � m Y o ° Z � a m m Z Z Z Z Z Z Z Z Z Z > Y > Z r O M O O N 6 m � o d 4 _ � v ° a - o ro m m m m m m m U U U U U U U U V U U U U C m Ly m o T m U O - N o° v a' s c m U a j w m m a w O_ N m ❑ o a O J Q' K ct L° Lt-am .5 n UaEi Um ow �`� o `° .o m rn n c m m ad aa- v.a E ¢ r U c� ¢ u J u) ate¢ au�Q LLd 3 X X. rn £ m T H 2 m Z m Z O a N ¢ ti m Z LE O¢ N T Q U Eo a ON 0:1 co U Q U m LL N U 4 U U LU U T Q ac+ m E Om m C Lu ¢ N N O O NO O p p r H p r O C N ° N N M1 N m d ❑ ` O ^ N 0 0 m 0 m O U c ° C O y ° O V � ❑ ❑ m °m °m¢ °Qavava`auooa� a� m a a� m H c m u t: O m O p� O Q mm c c n E N d ° w m c E y m 0 O i t I I I n I I I U tp GY i I I J I I I N Io LL o� j I l I I c. o d I I I I �� I I LM ! 00 I I II li N .N = c m I I i i l I I I j i I I Z Im E LO 43) �� I 'I ill lIl I j o I I IIII I I I I I I E. N u m I I I I E° a o (D I l I I I I I pv~ Io i p Q �F (D��@ O ax la" I II U) l� c c Iro `�ti iIl I II I i I j I 3 co C�0 N III IIII I i I I j QI .�.+ O oc m �iy E 01� oL C:.OI� EXHIBIT "A'' Exhibit A Successor Agency Budget — Fiscal Year 2014 -2015 Line Item Amount Staff * $117,215 Legal Services $20,000 Office Supplies $1,500 General Liability Insurance $9,000 Workers Compensation Insurance $1,200 Vehicle Maintenance $500 Oversight Board administration, financial assistance, admin. $27,335 Total $176,750 *Staff Breakdown: Title Assistant City Manager /Development Services Director Economic Development Manager Senior Administrative Assistant Total Percentage of Overall Salary (15 %) (45 %) (20 %) 0.8 (Full Time Equivalents)