The URL can be used to link to this page

Home My WebLink AboutSR - RES-SAORA-019 - OBLIGATION PAYMENT SCHEDULE & ADMINISTRATIVE BUDGET° ,,,, �' �bUN �y c AGENDA ITEM February 10, 2015 TO: Honorable Mayor and City Council Members of the Successor Agency to the Orange Redevelopment Agency THRU: John W. Sibley City Manager FROM: Lisa L. Kim Economic D el ment Manager 1. SUBJECT ReviewedNer'fied By: City Manager Finance Dire or To Be Presen y: Lisa Kim X Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes _ Public Hrgs Admin Reports Plan /Environ Resolution No. SAORA -019 — A Resolution of the Successor Agency to the Orange Redevelopment Agency approving a Recognized Obligation Payment Schedule and related Administrative Budget for the period covering July 1, 2015 through December 31, 2015 pursuant to Section 34177(I)(2)(A) of the California Community Redevelopment Law. 2. SUMMARY Approval of the Recognized Obligation Payment Schedule and related Administrative Budget for the period covering July 1, 2015 through December 31, 2015 (ROPS 15 -16A) and authorize the transmittal of ROPS 15 -16A and related Administrative Budget to the Oversight Board pursuant to Assembly Bill 1484. 13. RECOMMENDED ACTION 1. Approve Resolution No. SAORA -019 and direct Successor Agency Clerk to record previously stated City Council abstentions listed below and reasons therefore as part of the minutes: Mayor pro tem Whitaker Line Item No. 7 (SC Fuels) due to SC Fuels as law firm client. Line Item No. 27 -28 ( Metrolink Parking Structure) due to Metrolink as law firm client. Line Item No. 73 (Tierra West) due to Metrolink as law firm client. Line Item No. 106 (Property Management) due to Metrolink as law firm client. Identified in prior ROPS 13 -14A as Line Item 18. Line Item No. 124 -127 (Property Maintenance) due to Metrolink as law firm client. Identified in prior ROPS 13 -14A as Line Item 18. SAORA ITEM -�93 f 1 2/10/15 Councilmember Alvarez Line Item No. 15 -16 (Royer & South Grand Apts) due to property ownership in area. Line Item No. 27 -28 (Metrolink Parking Structure) due to property ownership in area. Line Item No. 73 (Tierra West) due to property ownership in area. Line Item No. 91, 93 and 95 (Project Management) due to property ownership in area. Identified in prior ROPS 13 -14A as Line Item 18. Line Item No. 100 -102 (Property Maintenance) due to property ownership in area. Identified in prior ROPS 13 -14A as Line Item 18. Line Item No. 106 (Property Management) due to property ownership in area. Identified in prior ROPS 13 -14A as Line Item 30. Line Item No. 110, 112 -113 (Property Maintenance) due to property ownership in area. Identified in prior ROPS 13 -14A as Line Item 18. Line Item No. 124 -127 (Property Maintenance) due to property ownership in area. Identified in prior ROPS 13 -14A as Line Item 18. 2. Direct staff to transmit ROPS 15 -16A and related Administrative Budget to the Oversight Board of the Successor Agency to the Orange Redevelopment Agency. 4. FISCAL IMPACT The preparation and submittal of ROPS 15 -16A is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from July 1, 2015 through December 31, 2015. Items listed on the ROPS 15 -16A will be included in the City's FY 15 -16 Annual Budget. The ROPS 15 -16A shall become operative after it is approved by the Oversight Board and the State of California Department of Finance. 5. STRATEGIC PLAN GOAL(S 1. Provide for a safe community a. Provide staffing and resources to deliver services that ensure public safety. 2. Be a fiscally healthy community. a. Expend fiscal resources responsibly. 6. GENERAL PLAN IMPLEMENTATION Not applicable. 17. DISCUSSION and BACKGROUND Background Assembly Bill 1484 ( "AB 1484 ") also known as the Redevelopment Budget Trailer Bill created obligations and deadlines for redevelopment wind -down activities, including specific language in Health and Safety Code Section 34177(m) with regard to preparation and approval of the Recognized Obligation Payment Schedule ( "ROPS "). The ROPS lists all legally binding and enforceable agreements or contracts of the former Orange Redevelopment Agency for each six month period, including those necessary for the continued administration of the Successor Agency to wind down the former Agency. SAORA ITEM 2 2/10/15 Discussion The State Department of Finance ( "DOF ") requires submission of the ROPS through the web - based application called the Redevelopment Agency Dissolution Web Application ( "RAD ") that was first established in the ROPS 13 -14B period. The ROPS for this period covers July 1, 2015 through December 31, 2015 ( "ROPS 15 -16A" ). It is comprised of the following five sections: 1. Summary Section: This section summarizes funding totals carried forward from Current ROPS Period and the Prior Period Adjustments (PPA) from a prior period ROPS. 2. ROPS Detail Form: This section lists the Agency outstanding obligations, debts and payments due for the ROPS period by fund source. 3. Report of Fund Balances Form changed to Report of Cash Balances: This form requires the Successor Agency to report the all cash balances for each funding source in accordance with HSC section 34177(1). 4. Prior Period Adjustments Form ( "PPA'): The PPA identifies actual and available funding from a prior period ROPS. Any unspent funds will be calculated to offset the current ROPS. An example for ROPS 15 -16A would review PPA of actual and available funding from ROPS 14 -15A. 5. Notes Form: The completion of this form is optional and available to Successor Agency to provide additional information associated with the ROPS Detail Form. Overview of ROPS 15 -16A Following the RAD process for ROPS 15 -16A, the estimated Redevelopment Property Tax Trust Fund ( "RPTTF ") to be disbursed is $4,729,495 subject to approval of the Oversight Board and DOF. Proposed Amount Requested Prior Period Adjustment Estimated RPTTF ROPS 14 -15B from ROPS 14 -15A Disbursement Amount RPTTF $7,084,391 ($1,593,262) $4,729,495 Deadline to submit ROPS I5 -16A In order to comply with AB 1484 and the upcoming March 1, 2015 deadline, it is recommended that the Successor Agency approve ROPS 15 -16A and related Administrative Budget and transmits these documents to the Oversight Board for approval. DOF has indicated late ROPS submission would be subject to penalties set forth in Health and Safety Code 34177(m)(2). The penalty affects the entity that created the redevelopment agency which is subject to a penalty in an amount equal to $10,000 per day for every day the ROPS is not submitted to DOE 18. ATTACHMENTS • Resolution No. SAORA -019 • Recognized Obligation Payment Schedule and Administrative Budget for the July 1, 2015 to December 31, 2015 Period (ROPS 15 -16A) N:\Economic Development Files \STAFF REPORTS \2015 \021015d_ROPS 15- 16A.doc SAORA ITEM 3 2/10/15 RESOLUTION NO. SAORA - 019 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND RELATED ADMINISTRATIVE BUDGET FOR THE PERIOD COVERING JULY 1, 2015 THROUGH DECEMBER 31, 2015 PURSUANT TO SECTION 34177(1)(2)(A) OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW. WHEREAS, Assembly Bill xl 26 ( "AB 26 ") and AB xl 27 were passed by the State Legislature on June 15, 2011 and signed by the Governor on June 28, 2011; and WHEREAS, among other things, AB 26 amended Sections 33500, 33501, 33607.5 and 33607.7 of the California Health and Safety Code and added Part 1.8 and Part 1.85 of Division 24 to the California Health and Safety Code; and WHEREAS, by enactment of Part 1.85 of Division 24 of the California Health and Safety Code, subject to all reservations herein stated, the Orange Redevelopment Agency (the "Agency ") was dissolved as of February 1, 2012; and WHEREAS, Assembly Bill 1484 ( "AB 1484 ") was passed by the State Legislature on June 27, 2012 and signed by the Governor on June 27, 2012 which adds and amends certain provisions contained in AB 26, including the process for adopting Recognized Obligation Payment Schedules; and WHEREAS, California Health and Safety Code Section 34173(a) designates successor agencies as successor entities to former redevelopment agencies; and WHEREAS, on January 10, 2012, by Resolution No. 10625, the City of Orange declared itself as the successor agency (the "Successor Agency ") upon the dissolution of the Agency, subject to all reservations stated in such resolution; and WHEREAS, the ROPS identifies each enforceable obligation on which payments will be required and identifies the minimum payment amounts and due dates of payments required by each such enforceable obligation; and WHEREAS, California Health and Safety Code Section 34177(1) provides that a successor agency must prepare a Recognized Obligation Payment Schedule (ROPS) for every six -month period thereafter; and WHEREAS, California Health and Safety Code Section 341770) provides that a successor agency must prepare an administrative budget concurrently with a ROPS for every six - month period thereafter; and NOW, THEREFORE, the Governing Board of the Successor Agency to the Orange Redevelopment Agency (the "Successor Agency ") hereby resolves, finds and determines, on the