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HomeMy WebLinkAboutItem 4a - Recognized Obligation Payment ScheduleSTAFF REPORT Development Services Department DATE: September 2, 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 — 9 APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JANUARY 1, 2015, THROUGH JUNE 30, 2015 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. The proposed ROPS calls for $1,733,543 in funding for the period of January 1 — June 30, 2015. It is recommended that the Successor Agency approve the ROPS as presented. BACKGROUND Following the dissolution of Redevelopment in 2012, the City of Arcadia chose to become the Successor Agency to the Arcadia Redevelopment Agency. The Successor Agency is complying with two bills that impact the Redevelopment unwinding process, including the timing of the ROPS. 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 enforceable obligations. The Successor Agency has previously approved six ROPS documents, which covered all of the 2012, 2013, and 2014 calendar years in six month increments. All six documents were approved by the Oversight Board, and with slight modifications, by the State Department of Finance (DOF). Successor Agency Resolution SA — 9 (ROPS) September 2, 2014 Page 2 of 3 DISCUSSION The attached ROPS document has been prepared according to CA Health & Safety Code Section 34177(m) and covers the period of January 1 — June 30, 2015, reflecting the last six months of Fiscal Year 2014 -15. The total requested amount to meet the outstanding responsibilities is $1,733,543. The ROPS lists 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. One item that will be included for the final time is the request for funds to meet the January 2015 obligation to the Campus Commons affordable senior housing development. The total obligation for this project is $3.35 million, and the last three ROPS included requests of $1 million each. This ROPS requests the remaining $350,000. Importantly, this ROPS also shows that the entire $3.35 million will be paid to Campus Commons during this period. A new item on the ROPS is a $150,000 annual payment for administrative costs to the Los Angeles County Housing Authority, which is acting as the Successor Agency for affordable housing. This is a requirement of Assembly Bill 471 that was signed into law on February 18, 2014. The timing was too late to be included on the ROPS that covered July 1 — December 31, 2014, which was approved by the Successor Agency on February 4, 2014, and the Oversight Board on February 18, the day the bill became law. While it is included in this ROPS, the payment for administrative costs will only be made if LA County takes responsibility for Arcadia's remaining affordable housing assets. To date, they have only taken control of the Alta Street Classics development. If approved, the ROPS will be presented to the Oversight Board at its September 16 meeting, and forwarded to the Department of Finance, the State Controller, and the LA County Auditor - Controller before the October 1, 2014, deadline. It will also be posted on the City's website. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The ROPS is exempt from the California Environmental Quality Act under Section 15061(b)(3) because it is considered to be "not a project ". FISCAL IMPACT The proposed ROPS calls for $1,733,543 in funding for the period of January 1 — June 30, 2015. The LA County Auditor - Controller would forward funds based on this ROPS to pay the Successor Agency's continuing obligations. The payment should be forwarded by October 1, 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. Successor Agency Resolution SA — 9 (ROPS) September 2, 2014 Page 3 of 3 RECOMMENDATION It is recommended that the City Council, acting as the Successor Agency to the Arcadia Redevelopment Agency, adopt Successor Agency Resolution No. SA — 9 approving and adopting the Recognized Obligation Payment Schedule (ROPS) for the period of January 1, 2015, through June 30, 2015. Approved: Dominic Lazzar t City Manager Attachments: Successor Resolution No. SA — 9 Exhibit "A ": Recognized Obligation Payment Schedule (ROPS) RESOLUTION NO. S.A - 9 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 JANUARY 1, 2015 THROUGH JUNE 30, 2015, 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. 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 January 1, 2015 through June 30 2015, 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 BOPS, 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 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 Mayor is hereby authorized and directed to sign the Resolution and the City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of 2014. 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] Recognized Obligation Payment Schedule (ROPS 14 -15B) • ROPS Detail January 1, 2015 through June 30, 2015 (Report Amounts in Whole Dollars) A B C D E F G H I J K L M N O P Funding Source Non- Redevelopment Property Tax Trust Fund Non - RPTTF RPTTF Reserve Com;rectfAgreement Contract/Agreement Total Outstanding Item P Project Name (Debt Obligation Obligation Type Execution Date Termination Date Pa tie DescrlpticnlProject Scope Project Area Debt or Obligation Retired Bond Proceeds Balance Other Funds Non -Admin Admin Slx -Month Total $ 35,615,602 $ - $ 3,000,000 $ - $ 1.645,166 $ 88,375 $ 4,733,543 1 2001A1Tax Allocation Bonds Bonds Issued On or 5/5/2001 5/1/2023 Bank of New York Bonds issued to fund non-housing Central 6.959.438 N 641,634 641 634 2 2010 Tax Allocation Bonds Bonds Issued On or 9/1/2010 2/1/2027 Bank of New York Bonds issued to fund non- housing Central 25,064,489 N 500,234 500,234 Before 12/31/10 projects 3 Successar Agency Employees Admin Costs 7/112013 6/30/2014 City Employees Payroll for Successor Agency Central 58,607 N 58,6071 58,607 employees 4 Lepl/App raisal Costs Lags] 7/1/2012 6/30/2013 Atty./Appraiser Legal & Appraisal Costs to sell land Central 10,000 N 10,000 10.000 5 Administrative Overhead Admin Costs 711/2013 6/30/2014 City of Arcadia Administrative Support services Central 19,768 N 19,768 19,768 6 Bond Trustee Services Professional 615/2001 2/1/2027 Bank of New York Trustee & Bond Disclosure Services Central 1,700 N 1,700 1,700 Services 7 Contract for Consulting Services Professional 9!112010 2!1/2027 Fieldmann ROlapp Continuing Disclosure bonds Central - N - Services 8 Maintenance for Vacant Properties Property 1/1/2010 7/31/2015 5 & 5 Fence Co. /SCE Self Storage Building and Lucile Street Central 500 N 500 500 Maintenance Properties 9 Financial Auditing Professional 71112013 6/30/2014 Pun & McGeady, CPA Audit Agency Bonds & Agency Central - N Services Financial Audit 10 Campus Commons OPA/DDA/Constructi 10/1/2010 1/15/2015 Arcadia Commons L.P. Law Income Senior Housing Project L/M Housing 3,350,000 N 3,000,000 350.000 3,350,000 on 16 Contract for Consulting Services Professional 7/1/2014 6/30/2015 Hindediter, de Llamas & Financial Analysis for Continuing Central 1,100 N 1,100 1,100 Services Associates (HdQ Disclosure -ARA bonds 17 Admin Costs for Afford. Housing Admin Casts 2/1/2012 6130!2087 LA County Housing AB471- Successor Agency for LIM Housing 150,000 N 1 150,000 150,000 Authority Affordable Housing EXHIBIT "A" Recognized Obligation Payment Schedule (ROPS 14 -158) - Notes January 1, 2015 through June 30, 2015 Item # NoteslComments There is an existing agreement, first approved in September 2010, that requires a $3.35 million payment in January 2015. The DOF rejected the retention of housing funds to make the payment as recommended in the Housing DDR. The S.A. needs to accumulate the final amount to meet this obligation. The S.A. will use the 10 previously approved $3 million plus the $350,000 requested on this ROPS to make the payment during the ROPS 14 -15B period. 17 This is a payment to the Los Angeles County Housing Authority per AB 471. The LA County Housing Authority is Arcadia's Successor Agency for affordable housing.