SR - RES-SAORA-013 - OBLIGATION PAYMENT SCHEDULEo; �a
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AGENDA ITEM
February 11, 2014 :71
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 Development Manager
ReviewedNerified By:
City Manager
Finance Directo
,
To Be Presented
Lisa Ki
X Cons Calendar
VCity Mgr Rpts
Council Reports _
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. SAORA -013 — 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, 2014 through December 31, 2014 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, 2014 through December 31, 2014 (ROPS 14 -15A) and authorize the
transmittal of ROPS 14 -15A and related Administrative Budget to the Oversight Board pursuant
to Assembly Bill 1484.
3. RECOMMENDED ACTION
Approve Resolution No. SAORA -013 and direct Successor Agency Clerk to record
previously stated City Council abstentions and reasons therefore as part of the minutes; and,
2. Direct staff to transmit ROPS 14 -15A 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 14 -15A is for the purpose of allowing the Successor
Agency to pay its enforceable obligations for the period from July 1, 2014 through December 31,
2014. Items listed on the ROPS 14 -15A will be included in the City's FY 14 -15 Annual Budget.
The ROPS 14 -15A shall become operative after it is approved by the Oversight Board and the
State of California Department of Finance.
SAORA ITEM 33 ) 1 2/11/14
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.
7. DISCUSSION and BACKGROUND
Background
The enactment of 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.
Discussion
The State Department of Finance ( "DOF ") continues to modify the new web -based application
for submission of a ROPS. The new application called the Redevelopment Agency Dissolution
Web Application ( "RAD ") was established in ROPS 13 -14B. The latest RAD includes
modifications to the new ROPS template for the period covering July 1, 2014 through December
31, 2014 ( "ROPS 14 -15A ") as follows:
1. ROPS Detail Form: Retired enforceable obligations are no longer listed on this form.
2. Prior Period Adjustments Form ( "PPA'): The form has not changed. The PPA identifies
actual and available funding from a prior period ROPS. Any unspent funds will be
calculated to offset for the current ROPS. An example for ROPS 14 -15A would review
PPA of actual and available funding from ROPS 13 -14A.
3. Report of Fund Balances Form changed to Report of Cash Balances: This new form
replaced the prior Report of Fund Balance. The new form requires the Agency to report
the cash balances for each funding source in accordance with HSC section 34177(1).
Deadline to submit ROPS 14 -15A
In order to comply with AB 1484 and the upcoming March 1, 2014 deadline, it is recommended
that the Successor Agency approve ROPS 14 -15A 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 DOF.
SAORA ITEM 2 2/11/14
8. ATTACHMENTS
• Resolution No. SAORA -013
• Recognized Obligation Payment Schedule and Administrative Budget for the July 1, 2014
to December 31, 2014 Period (ROPS 14 -15A)
NASTAFF REPORTS\2014 \021114a_ROPS 1415A (ROPS6).doc
SAORA ITEM 3 2/11/14
RESOLUTION NO. SAORA - 013
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, 2014 THROUGH
DECEMBER 31, 2014 PURSUANT TO SECTION
34177(l)(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