SR - RES-SAORA-016 - RECOGNIZED OBLIGATION PAYMENT SCHEDULE & ADMINISTRATIVE BUDGET JANUARY 1 2015 THROUGH JUNE 30 2015AGENDA ITEM
September 9, 2014
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
City Mana r
Finance D ector
To Be Presented By:
Lisa Kim
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1. SUBJECT
Resolution No. SAORA -016 — 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 January 1, 2015 through June 30, 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 January 1, 2015 through June 30, 2015 (ROPS 14 -1513) and authorize the
transmittal of ROPS 14 -15B and related Administrative Budget to the Oversight Board pursuant
to Assembly Bill 1484.
3. RECOMMENDED ACTION
Approve Resolution No. SAORA -016 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 -15B 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 -15B is for the purpose of allowing the Successor
Agency to pay its enforceable obligations for the period from January 1, 2015 through June 30,
2015. Items listed on the ROPS 14 -15B are included in the City's FY 14 -15 Annual Budget.
The ROPS 14 -15B shall become operative after it is approved by the Oversight Board and the
State of California Department of Finance.
SAORA ITEM �03 1 09/09/14
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 ") 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 latest version of RAD incorporates
minimal modifications to the ROPS template for the period covering January 1, 2015 through
June 30, 2015 ( "ROPS 14- 1513"). 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 for the
current ROPS. An example for ROPS 14 -15B would review PPA of actual and available
funding from ROPS 13 -14B.
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.
SAORA ITEM 2 09/09/14
Overview of ROPS 14-15B
Following the RAD process for ROPS 14 -1513, the estimated Redevelopment Property Tax Trust
Fund ( "RPTTF ") to be disbursed is $6,425,902 subject to approval of the Oversight Board and
DOF.
Proposed
Amount Requested
Prior Period Adjustment
Estimated RPTTF
ROPS 14 -156
from ROPS 13 -14B
Disbursement Amount
RPTTF
$6,522,248
($96,346)
$6,425,902
Deadline to submit ROPS 14-15B
In order to comply with AB 1484 and the upcoming October 3, 2014 deadline, it is recommended
that the Successor Agency approve ROPS 14 -15B 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.
8. ATTACHMENTS
• Resolution No. SAORA -016
• Recognized Obligation Payment Schedule and Administrative Budget for the January 1,
2015 to June 30, 2015 Period (ROPS 14 -1513)
M\Economic Development Files \STAFF REPORTS\2014 \090914a ROPS 14- 15B.doc
SAORA ITEM 3 09/09/14
RESOLUTION NO. SAORA - 016
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 JANUARY 1, 2015 THROUGH JUNE
30, 2015 PURSUANT TO SECTION 34177(1)(2)(A) OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW.
WHEREAS, Assembly Bill x1 26 ( "AB 26 ") and AB x 1 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(l) 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
basis of the facts set forth in the agenda report presented to it and any testimony received at the
meeting at which this matter was considered, as follows: