HomeMy WebLinkAboutItem 13a - Recognized Obligation Payment Schedule ("ROPS")
DATE: December 17, 2019
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, Senior Management Analyst
SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA-17 APPROVING AND
ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(“ROPS”) FOR THE PERIOD OF JULY 1, 2020, THROUGH JUNE 30,
2021, 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.
It is recommended that the City Council, serving as the Successor Agency to the Arcadia
Redevelopment Agency, adopt Resolution No. SA-17 (Attachment 1) approving and
adopting the Recognized Obligation Payment Schedule (“ROPS”) for the period of July
1, 2020, through June 30, 2021.
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, 2020. All previous ROPS documents were
approved by the local 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 No. SA-17
Recognized Obligation Payment Schedule (“ROPS”)
December 17, 2019
Page 2 of 3
Effective July 1, 2018, all local oversight boards in LA County were dissolved and
consolidated into five district oversight boards. The Arcadia Successor Agency is
assigned to the Fifth District Consolidated Oversight Board. Following approval by the
Arcadia Successor Agency, the ROPS is scheduled to be presented to the Fifth District
Consolidated Oversight Board in January 2020.
DISCUSSION
This ROPS covers the period of July 1, 2020, through June 30, 2021, reflecting the 2020-
21 Fiscal Year. The ROPS includes the enforceable obligations that are part of the
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. 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 20-21 also carries over two line-items from the previous ROPS for funding for
legal costs and escrow, title, and other related services for the sale of the final agency-
owned property at 33 W. Huntington Drive (Arcadia Self Storage Building). It is anticipated
that escrow to sell this property will close on January 31, 2020, with Northeast
Development Enterprises II, LLC, in which case these funds will not be needed. However,
these items are included in the ROPS 20-21 to ensure adequate funding is available in
the event that the sale of the property does not transact and the property needs to be sold
to an alternate buyer. Following the sale of the self-storage property, the Agency will be
eligible to submit a Last & Final ROPS, at which time these two line-items can be adjusted
or eliminated as appropriate based on the timing of the sale.
Following Successor-Agency approval, the ROPS 20-21 will be presented to the Fifth
District Consolidated Oversight Board at their January 9, 2020, meeting. Once approved
by the Oversight Board, the ROPS will be forwarded to the Department of Finance, the
State Controller, and the LA County Auditor-Controller, and posted on the City’s website,
prior to the February 1, 2020 deadline.
ENVIRONMENTAL ANALYSIS
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 $ 2,822,030 in funding for the period of July 1, 2020, through
June 30, 2021. The Los Angeles County Auditor-Controller will forward funds based on
Successor Agency Resolution No. SA-17
Recognized Obligation Payment Schedule (“ROPS”)
December 17, 2019
Page 3 of 3
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, determines that this project is exempt under the California
Environmental Quality Act (“CEQA”); and adopt Successor Agency Resolution No. SA-
17 approving and adopting the Recognized Obligation Payment Schedule (“ROPS”) for
the period of July 1, 2020, through June 30, 2021, pursuant to Health and Safety Code
Section 34177(m).
Attachment: Successor Agency Resolution No. SA-17