SR - RES-SAORA-022 - RECOGNIZED OBLIGATION PAYMENT SCHEDULE & ADMINISTRATIVE BUDGET JULY 1 2016 THROUGH JUNE 30 2017� OF ORS
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AGENDA ITEM
January 12, 2016
TO: Honorable Chairperson and Directors
of the Successor Agency to
the Orange Redevelopment Agency
THRU: Rick Otto
City Manager
FROM: Lisa L. Ki
Economic Ivelopmen Manager
ReviewedNerified
City Manager
Finance Director _ (/
To Be Presented By:
Lisa Kim
X Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Crates
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. SAORA -022 — A Resolution of the Governing Board of the Successor Agency to
the Orange Redevelopment Agency approving a Recognized Obligation Payment Schedule the
fiscal period covering July 1, 2016 through June 30, 2017, pursuant to Health and Safety Code
Section 34177 and taking certain related actions.
Resolution No. SAORA -023 — A Resolution of the Governing Board of the Successor Agency to
the Orange Redevelopment Agency approving the proposed Administrative Budgets for the six -
month fiscal periods from July 1, 2016 through December 31, 2016 and from January 1, 2017
through June 30, 2017, and taking certain related actions.
2. SUMMARY
Approval of the annual Recognized Obligation Payment Schedule and related Administrative
Budget for the period covering July 1, 2016 through June 30, 2017 (ROPS 16 -17) and authorize
the transmittal of ROPS 16 -17 and the related Administrative Budgets to the Oversight Board.
3. RECOMMENDED ACTION
Approve Resolution No. SAORA -022 and direct Successor Agency Clerk to record
previously stated City Council abstentions listed below and reasons therefore as part of the
minutes:
Councilmember Alvarez
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. 106 (Property Management) due to property ownership in area. Identified in
prior ROPS 13 -14A as Line Item 30.
SAORA ITEM 3. 11 1 01/12/16
2. Approve Resolution No. SAORA -023; and,
3. Direct staff to transmit ROPS 16 -17 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 16 -17 is for the purpose of allowing the Successor
Agency to pay its enforceable obligations for the period from July 1, 2016 through June 30, 2017.
Items listed on the ROPS 16 -17 will be included in the City's FY 16 -17 Annual Budget. The
ROPS 16 -17 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.
7. DISCUSSION and BACKGROUND
Background
Assembly Bill 113 (AB 113) provided additional amendments to obligations and deadlines for
redevelopment wind -down activities, including specific language in Health and Safety Code
Section 34177(o)(1) with regard to preparation and approval of the annual Recognized
Obligation Payment Schedule ( "Annual ROPS ") covering the period July 1, 2016 to June 30,
2017 and for each period from July 1 to June 30 thereafter. The Annual ROPS lists all legally
binding and enforceable agreements or contracts of the former Orange Redevelopment Agency
for each fiscal -year 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 2013. The new Annual ROPS covers the period July 1, 2016 to June 30, 2017
(ROPS 16 -17). It is comprised of the following four 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.
. a .
SAORA ITEM 2 01/12/16
3. Report of Fund Balances Form changed to Report of Cash Balances: This form requires
the Successor Agency to report all cash balances for each funding source in accordance
with HSC section 34177(1).
4. Notes Form: The completion of this form is optional and available to Successor Agency
to provide additional information associated with the ROPS Detail Form.
The Prior Period Adjustments (PPA) Form has been temporarily removed from this ROPS to
allow for the Annual ROPS transition. A new PPA form will be included in ROPS 18 -19.
Overview of ROPS 16 -17
Following the RAD process for ROPS 16 -17, the estimated Redevelopment Property Tax Trust
Fund ( "RPTTF ") to be disbursed is $8,941,710 subject to approval of the Oversight Board and
DOF.
Proposed
Amount Requested
Administrative Budget
Estimated RPTTF
ROPS 16 -17
Disbursement Amount
RPTTF
$8,691,710
$250,000
$8,941,710
Along with the preparations of the annual ROPS, the Successor Agency is required to prepare
administrative budgets for the six -month fiscal periods from July 1, 2016 through December 31,
2016 and from January 1, 2017 through June 30, 2017. The proposed Administrative Budgets
shall include the estimated amounts for Successor Agency administrative costs that are to be paid
from property tax revenues deposited in the RPTTF.
Deadline to submit ROPS 16 -17
In order to comply with AB 113 and the upcoming February 1, 2016 deadline, it is recommended
that the Successor Agency approve ROPS 16 -17 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(o)(1). 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
8. ATTACHMENTS
• Resolution No. SAORA -022
• Resolution No. SAORA -023
• Recognized Obligation Payment Schedule and Administrative Budget for the July 1, 2016
to June 30, 2017 Period (ROPS 16 -17)
NAEconomic Development Files \STAFF REPORTS\2016 \11216d Annual ROPS 16- 17.doc
SAORA ITEM 3 01/12/16
RESOLUTION NO. SAORA -022
A RESOLUTION OF THE GOVERNING BOARD OF THE SUCCESSOR
AGENCY TO THE ORANGE REDEVELOPMENT AGENCY
APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE FISCAL PERIOD FROM JULY 1, 2016 THROUGH JUNE 30,
2017, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177
AND TAKING CERTAIN RELATED ACTIONS
WHEREAS, pursuant to Health and Safety Code Section 34177(o), the Successor
Agency to the Orange Redevelopment Agency (the "Successor Agency ") must prepare a
Recognized Obligation Payment Schedule listing the anticipated payments for enforceable
obligations to be made by the Successor Agency during the fiscal period from July 1, 2016
through June 30, 2017 ( "ROPS 16 -17 ") and submit ROPS 16 -17 to the oversight board of the
Successor Agency (the "Oversight Board ") for approval; and
WHEREAS, pursuant to Health and Safety Code Section 34177(1)(2)(B), at the same
time that the Successor Agency submits ROPS 16 -17 to the Oversight Board for approval, the
Successor Agency must submit a copy of such ROPS 16 -17 to the State Department of Finance
(the "DOF "), the County administrative officer, and the County Auditor - Controller; and
WHEREAS, pursuant to Health and Safety Code Section 34177(1)(2)(C) and Section
34177(o)(1), the Successor Agency must: (i) submit the Oversight Board - approved ROPS 16 -17
to the DOF, the Office of the State Controller, and the County Auditor - Controller no later than
February 1, 2016, and (ii) post a copy of the Oversight Board - approved ROPS 16 -17 on the
Successor Agency's website;
NOW, THEREFORE, the Governing Board of the Successor Agency to the Orange
Redevelopment Agency does hereby find, determine, resolve, and order as follows:
Section 1. The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2. ROPS 16 -17, substantially in the form attached hereto as Exhibit A , is
hereby approved. The Executive Director of the Successor Agency, in consultation with the
Successor Agency's legal counsel, may modify ROPS 16 -17 as the Executive Director or the
Successor Agency's legal counsel deems necessary or advisable.
Section 3. Staff is hereby authorized and directed to submit a copy of ROPS 16 -17 to
the Oversight Board for approval and, at the same time, transmit a copy of ROPS 16 -17 to the
DOF, the County Auditor - Controller and the County administrative officer as designated by the
County.
Section 4. Staff is hereby authorized and directed to submit a copy of Oversight
Board - approved ROPS 16 -17 to the DOF, the Office of the State Controller, and the County
RESO NO. SAORA -022
RESOLUTION NO. SAORA -023
A RESOLUTION OF THE GOVERNING BOARD OF THE SUCCESSOR
AGENCY TO THE ORANGE REDEVELOPMENT AGENCY
APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX -
MONTH FISCAL PERIODS FROM JULY 1, 2016 THROUGH
DECEMBER 31, 2016 AND FROM JANUARY 1, 2017 THROUGH JUNE
30, 2017, AND TAKING CERTAIN RELATED ACTIONS
WHEREAS, pursuant to Health and Safety Code Section 341770), the Successor
Agency to the Orange Redevelopment Agency (the "Successor Agency ") must prepare a
proposed administrative budget for each six -month fiscal period (commencing each January 1
and July 1) and submit each proposed administrative budget to the oversight board of the
Successor Agency (the "Oversight Board ") for approval; and
WHEREAS, each proposed administrative budget shall include all of the following:
(1) estimated amounts for Successor Agency administrative costs for the upcoming six -month
fiscal period; (2) proposed sources of payment for the costs indentified in (1); and (3) proposals
for arrangements for administrative and operations services provided by the City of Orange or
another entity; and
WHEREAS, pursuant to Health and Safety Code Section 34177(k), the Successor
Agency is required to provide administrative cost estimates, from its approved administrative
budget that are to be paid from property tax revenues deposited in the Redevelopment Property
Tax Trust Fund, to the County Auditor - Controller for each six -month fiscal period; and
WHEREAS, there has been presented to this Board for approval Successor Agency's
proposed administrative budgets for the six -month fiscal periods from July 1, 2016 through
December 31, 2016 ( "Administrative Budget 16 -17A ") and from January 1, 2017 through June
30, 2017 ( "Administrative Budget 16 -17B," together with Administrative Budget 16 -17A, the
"Administrative Budgets ");
NOW, THEREFORE, the Governing Board of the Successor Agency to the Orange
Redevelopment Agency does hereby find, determine, resolve, and order as follows:
Section 1. The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2. Administrative Budget 16 -17A and 16 -17B, substantially in the form
attached hereto as Exhibit A , is hereby approved.
Section 3. The Executive Director of the Successor Agency, in consultation with the
Successor Agency's legal counsel, may modify the Administrative Budgets as the Executive
Director or the Successor Agency's legal counsel deems necessary or advisable.
RESO NO. SAORA -023