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Home My WebLink AboutItem 4a - Adopting Recognized Obligation Payment Schedule ROPS for FY 2018-19 DATE: January 16, 2018 TO: Honorable Mayor and City Council, as the Successor Agency to the Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Economic Development Analyst SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA-14 APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR THE PERIOD OF JULY 1, 2018, THROUGH JUNE 30, 2019, 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 fiscal year. The ROPS sets forth the debts and payment obligations of the former Arcadia Redevelopment Agency for the specified period. Each ROPS is subject to the approval of the Successor Agency and the Oversight Board before any of the listed obligations can be paid. For the upcoming Fiscal Year, the proposed ROPS also includes funding to administer the sale of the last Successor Agency-owned property at 33 W. Huntington Drive (the Arcadia Self Storage Building). It is recommended that the City Council, serving as the Successor Agency to the Arcadia Redevelopment Agency, adopt Resolution No. SA-14 (see Attachment 1) approving and adopting the Recognized Obligation Payment Schedule (“ROPS”) for the period of July 1, 2018, through June 30, 2019. BACKGROUND Following the dissolution of Redevelopment in 2012, the City of Arcadia chose to become the Successor Agency to the Arcadia Redevelopment Agency. 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 February 1, 2012, through June 30, 2017. All previous Successor Agency Resolution No. SA-14 Recognized Obligation Payment Schedule (“ROPS”) January 16, 2018 Page 2 of 3 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. The previous ROPS 17-18 included a line-item for funding for escrow, title, and other related services for the land sale, transfer, or dissolution of the final agency-owned property at 33 W. Huntington Drive (Arcadia Self Storage Building). Successor Agency staff has begun this process and anticipates a transaction with a preferred buyer will be forthcoming in the 2018-19 Fiscal Year. All monies from the sale, transfer, or dissolution of the property will go to the State DOF, and all of the relevant taxing entities, including the City of Arcadia. DISCUSSION This ROPS covers the period of July 1, 2018, through June 30, 2019, reflecting the 2018-19 Fiscal Year. The ROPS includes the enforceable obligations that are part of two outstanding redevelopment bond issues, including principal and interest payments, maintenance costs for the last remaining Successor Agency property, legal costs, and payments for bond trustee services. All of these payments would be required if the Redevelopment Agency was still in existence. Administrative costs for affordable housing, now operated by the LA County Housing Authority, are included in the ROPS for distribution to that agency. The ROPS also includes costs for Successor Agency staffing and administrative functions. All of the above-mentioned obligations are standard items that have been included on all previous ROPS documents. The ROPS also carries over a line-item from the previous ROPS for funding for escrow, title, and other related services for the land sale, transfer, or dissolution of the final agency-owned property at 33 W. Huntington Drive (Arcadia Self Storage Building). Successor Agency Staff has begun this process, but it is anticipated that the final sale, transfer, or dissolution of the property will not be finalized until the 2018-19 Fiscal Year. If approved, the ROPS will be presented to the Oversight Board at its January 23, 2018, meeting and forwarded to the Department of Finance, the State Controller, and the LA County Auditor-Controller before the February 1, 2018, 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”. Successor Agency Resolution No. SA-14 Recognized Obligation Payment Schedule (“ROPS”) January 16, 2018 Page 3 of 3 FISCAL IMPACT The proposed ROPS calls for $2,973,112 in funding for the period of July 1, 2018, through June 30, 2019. The Los Angeles County Auditor-Controller would forward funds based on this ROPS to pay the Successor Agency’s 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, as the Successor Agency to the Arcadia Redevelopment Agency, adopt Successor Agency Resolution No. SA-14 approving and adopting the Recognized Obligation Payment Schedule (“ROPS”) for the period of July 1, 2018, through June 30, 2019, pursuant to Health and Safety Code Section 34177(m). Attachment: Successor Agency Resolution No. SA-14 AB C DE F G HIJKLMNOPQRSTUVW Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $ 29,668,679 $ 2,973,112 $ - $ - $ - $ 1,751,914 $ 30,500 $ 1,782,414 $ - $ - $ - $ 1,123,640 $ 67,058 $ 1,190,698 1 2001A/Tax Allocation Bonds Bonds Issued On or Before 6/5/2001 5/1/2023 Bank of New York Bonds issued to fund non-housing Central 5,762,897 N $ 790,018 87,509 $ 87,509 702,509 $ 702,509 2 2010 Tax Allocation Bonds Bonds Issued On or Before 12/31/10 9/1/2010 2/1/2027 Bank of New York Bonds issued to fund non-housing projects Central 23,589,256 N $ 1,866,568 1,459,237 $ 1,459,237 407,331 $ 407,331 3 Successor Agency Employees Admin Costs 7/1/2017 6/30/2018 City Employees Payroll for Successor Agency employees Central 73,116 N $ 73,116 36,558 $ 36,558 36,558 $ 36,558 4 Legal Costs Legal 7/1/2017 6/30/2018 Attorney Legal Costs to sell land Central 20,000 N $ 20,000 10,000 $ 10,000 10,000 $ 10,000 5 Administrative Overhead Admin Costs 7/1/2017 6/30/2018 City of Arcadia Administrative Support services Central 41,000 N $ 41,000 20,500 $ 20,500 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 3,600 N $ 3,600 1,800 $ 1,800 1,800 $ 1,800 8 Maintenance for Successor Agency Properties Property Maintenance 1/1/2010 6/30/2018 S & S Fence Co./SCE Self Storage Building Central 2,000 N $ 2,000 1,000 $ 1,000 1,000 $ 1,000 9 Financial Auditing Professional Services 7/1/2017 6/30/2018 MOSS, LEVY & HARTZHEIM, LLP.Audit Agency Bonds & Agency Financial Audit Central 5,810 N $ 5,810 5,810 $ 5,810 - $ - 16 Contract for Consulting Services Professional Services 7/1/2017 6/30/2018 Hinderliter, de Llamas & Associates (HdL)Financial Analysis for Continuing Disclosure - ARA bonds Central 1,000 N $ 1,000 - $ - 1,000 $ 1,000 17 Admin Costs for Afford. Housing Admin Costs 2/1/2012 6/30/2067 LA County Housng Authority AB 471 - Successor Agency for Affordable Housing L/M Housing 150,000 N $ 150,000 150,000 $ 150,000 $ - 18 Escrow/Title Services Property Dispositions 7/1/2017 6/30/2018 Escrow and Title Companies Escrow, Title, and related services for Land Sale, Transfer, or Dissolution of the Self Storage Building property at 33 W. Huntington Dr. Central 20,000 N $ 20,000 10,000 $ 10,000 10,000 $ 10,000 19 N $ - $ - $ - 20 N $ - $ - $ - 21 N $ - $ - $ - 22 N $ - $ - $ - 23 N $ - $ - $ - 24 N $ - $ - $ - 25 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 $ - $ - $ - 53 N $ - $ - $ - 54 N $ - $ - $ - 55 N $ - $ - $ - 56 N $ - $ - $ - 57 N $ - $ - $ - 58 N $ - $ - $ - 59 N $ - $ - $ - 60 N $ - $ - $ - 61 N $ - $ - $ - 62 N $ - $ - $ - 63 N $ - $ - $ - 64 N $ - $ - $ - 65 N $ - $ - $ - 66 N $ - $ - $ - 67 N $ - $ - $ - 68 N $ - $ - $ - 69 N $ - $ - $ - 70 N $ - $ - $ - 71 N $ - $ - $ - 72 N $ - $ - $ - 73 N $ - $ - $ - 74 N $ - $ - $ - 75 N $ - $ - $ - 76 N $ - $ - $ - 77 N $ - $ - $ - 78 N $ - $ - $ - 79 N $ - $ - $ - 80 N $ - $ - $ - 81 N $ - $ - $ - 82 N $ - $ - $ - 83 N $ - $ - $ - 84 N $ - $ - $ - 85 N $ - $ - $ - 86 N $ - $ - $ - Arcadia Recognized Obligation Payment Schedule (ROPS 18-19) - ROPS Detail July 1, 2018 through June 30, 2019 (Report Amounts in Whole Dollars) Item #Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired 18-19A (July - December) 18-19BTotal Project Name/Debt Obligation Obligation Type Contract/Agreement Execution Date Fund Sources Fund Sources Contract/Agreement Termination Date ROPS 18-19 Total 18-19B (January - June) 18-19ATotal