HomeMy WebLinkAboutItem 4a - Approving ROPS FY 15-16DATE: February 17, 2015
STAFF REPORT
Development Services Department
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
SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA -10 APPROVING AND
ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(ROPS) FOR THE PERIOD OF JULY 1, 2015, THROUGH DECEMBER
31, 2015, PURSUANT TO HEALTH AND SAFETY CODE SECTION
34177(m)
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.
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 the enforceable
obligations. The Successor Agency has previously approved ROPS documents that
have covered 2012 through the first half of the 2015 calendar year, in six month
increments. All previous ROPS documents were approved by the Oversight Board, and
with slight modifications, by the State Department of Finance ( "DOF "). Funds received
have successfully paid all obligations of the Successor Agency to date.
Successor Agency Resolution SA -10 - ROPS
February 17, 2015
Page 2 of 3
DISCUSSION
This ROPS (ROPS 15 -16A), covers the period of July 1 — December 31, 2015,
reflecting the first six months of Fiscal Year 2015 -16. The ROPS includes the
enforceable obligations that are part of two outstanding redevelopment bond issues,
including principal and interest payments, annual audit costs, maintenance costs for
Successor Agency properties, legal costs, and payments for bond trustee services. All
of these payments would be required if the Redevelopment Agency was still in
existence. In addition, the ROPS includes costs for Successor Agency staffing and
administrative costs. All of the above - mentioned obligations are standard items that
have been included on all previous ROPS documents.
Two items that are unique include the "retirement" of the obligation to the Campus
Commons affordable housing development, and a payment for the administrative costs
for affordable housing to Los Angeles County. Regarding Campus Commons, the
original obligation to fully fund this senior affordable housing project was due and
payable in January 2015. Payments had been requested in increments over several
ROPS periods to obtain the full payment amount of $3.35 million. This payment was
made, and this obligation will be retired from future ROPS documents. A payment of
$150,000 has also been included for annual 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. 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, the County Supervisors have voted to assume
control of the City's housing assets, but County staff has not completed any official
transfer.
If approved, the ROPS will be presented to the Oversight Board at its February 24
meeting, and forwarded to the Department of Finance, the State Controller, and the LA
County Auditor - Controller, before the March 1, 2015, 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 $1,783,618 in funding for the period of July 1 — December
31, 2015, primarily for the repayment of bonded debt. The Los Angeles County Auditor -
Controller would forward funds based on this ROPS to pay the Successor Agency's
Successor Agency Resolution SA -10 - ROPS
February 17, 2015
Page 3 of 3
continuing obligations. 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 -10 approving and
adopting the Recognized Obligation Payment Schedule (ROPS) for the period of July 1,
2015, through December 31, 2015, pursuant to Health and Safety Code Section
34177(m).
Approvod.
Dominic Lazzare
City Manager
Attachments: Successor Resolution No. SA -10
Exhibit "A "- Recognized Obligation Payment Schedule 15 -16A
RESOLUTION NO. SA - 10
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, 2015 THROUGH DECEMBER
31, 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 BOPS ( "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.
SECTION 3. The Successor Agency hereby approves and adopts the ROPS for
July 1, 2015 through December 31, 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 ROPS, 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.
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
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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, 2015.
ATTEST:
City Clerk
APPROVED AS TO FORM:
n bt 1A
X
Stephen P. Deitsch
City Attorney
3
Mayor of the City of Arcadia
Recognized Obligation Payment Schedule (ROPS 15.16A) - ROPS Detail
July 1, 2015 through December 31, 2015
(Report Amounts in Whole Dollars)
A
B
C
D
E
F
G
H
I
i
K
L
M
N
O
P
Item #
Project Name / Debt Obligation
Obligation Type
Cont-- Agreement
Execution Date
Contmcf/Agreement
Termination Date
Payee
Description/Project Scope
Project Area
Total Outstanding
Debt or Obligation
Retired
Fundin Source
Six -Month Total
Non - Redevelopment Property Tax Trust Fund
Non -RPTTF
RPTTF
Bond Proceeds
Reserve Balance
Other Funds
Non - Admin
Admin
$ 31,141,312
$ -
$ -
$ -
$ 1,684,568
$ 99,050
$ 1,783,618
1
2001A/Tax Allocation Bonds
Bonds Issued On or
Before 12/31/10
615/2001
5/112023
Bank of New York
Bonds issued to fund non - housing
projects
Central
6,317,807
N
129,134
$ 129,134
2
2010 Tax Allocation Bonds
Bonds Issued On or
Before 12/31110
9/1/2010
2/112027
Bank of New York
Bonds issued to fund non - housing
projects
Central
24,564,255
N
1,395,234
$ 1,395,234
3
Successor Agency Employees
Admin Cosa
7/1/2015
6130/2016
City Employees
Payroll for Successor Agency
omployeas
Central
68,550
N
68,550
$ 68,550
4
Legal/Appraisal Costs
Legal
7/1/2015
6130/2016
Atty./Appraiser
Le al & Appraisal Costs to sell land
Central
10.00
N
10,000
$ 10,000
5
Administrative Overhead
Admin Costs
7/1/2015
613012016
Cit of Arcadia
Administrative Support services
Central
20,500
N
20,500
$ 20,500
6
Bond Trustee Services
Professional
Services
6/5/2001
2/1/2027
Bank of New York
Trustee & Bond Disclosure Services
Central
1,700
N
1,700
$ 1,700
7
Contract for Consulting Services
Professional
Services
9/1/2010
2/1/2027
Fieldmann Rolapp
Continuing Disclosure -ARA bonds
Central
N
$
8
Maintenance for Vacant Properties
Property
Maintenance
111/2010
12131/2015
S & S Fence Co. /SCE
Self Storage Building and Lucile Street
Properties
Central
500
N
500
$ 500
9
Financial Auditing
Professional
Services
7/112015
6/30/2016
Pun & McGeady, CPA
Audit Agency Bonds & Agency
Financial Audit
Central
8,000
N
8,000
$ 8,000
10
Campus Commons
OPAIDDA/Constructi
on
10/112010
1/15/2015
Arcadia Commons L.P.
Low Income Senior Housing Project
LIM Housing
Y
$ -
16
Contract for Consulting Services
Professional
Services
7/1/2015
6/30/2016
Hinderliter, de Llamas &
Associates HdL
Financial Analysis for Continuing
Disclosure - ARA bonds
Central
N
$
17
Admin Costs for Afford. Housing
Admin Costs
211 12012
6130/2067
LA County Housng Authority
AB 471 - Successor Agency for
Affordable Housing
LIM Housing
150,000
N
150,000
$ 150,000
18
N
$
19
N
$
20
N
$
21
N
$
22
N
I
$
23
N
$
24
N
$
251
N
$
26
N
$
27
N
$
28
N
$
29
N
$
30
N
$
31
N
$
32
N
$
33
N
$
34
N
$
35
N
$
36
N
37
N
$
38
N
$
39
N
$
40
N
$
41
N
$
42
N
$
43
N
$
44
N
$
45
N
$
46
N
$
47
N
$
48
N
$
49
N
$
50
N
$
51
N
$
52
N
$