SR - RES-SAORA-025 - RECOGNIZED OBLIGATION PAYMENT SCHEDULE & ADMINISTRATIVE BUDGET JULY 1 2017 THROUGH JUNE 30 20181. SUBJECT
Resolution No. SAORA -025 — 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 covering July 1, 2017 through June 30, 2018 (ROPS 17 -18), pursuant to Health
and Safety Code Section 34177, and taking certain related actions.
Resolution No. SAORA -026 — 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, 2017 through December 31, 2017, and from January 1, 2018
through June 30, 2018, and taking certain related actions.
2. SUMMARY
Approve the ROPS 17 -18 and related Administrative Budgets for the period covering July 1,
2017 through June 30, 2018, and authorize the transmittal of ROPS 17 -18 and the related
Administrative Budgets to the Oversight Board.
3. RECOMMENDED ACTION
1. Approve Resolution No. SAORA -025;
2. Approve Resolution No. SAORA -026; and
3. Direct staff to transmit ROPS 17 -18 and related Administrative Budgets to the Oversight
Board of the Successor Agency to the Orange Redevelopment Agency.
4. FISCAL IMPACT
The preparation and submittal of the ROPS 17 -18 allows the Successor Agency to pay its
enforceable obligations for the period from July 1, 2017 through June 30, 2018. Items listed on
the ROPS 17 -18 will be included in the City's FY 17 -18 Annual Budget. The ROPS 17 -18 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 7�:]
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 of July 1 to June 30. 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 Annual ROPS through the
web -based application called the Redevelopment Agency Dissolution Web Application (RAD),
first established in 2013. This Annual ROPS covers the period July 1, 2017 to June 30, 2018
(ROPS 17 -18). It is comprised of the following four forms:
1. Summary Report: This form summarizes funding totals carried forward from the ROPS
Detail Form by funding source and reports the Current Period Funding for Enforceable
Obligations of ROPS 17 -18A and 17 -18B in separate columns;
2. ROPS Detail Form: This form lists the Agency outstanding obligations, debts, and
payments due for ROPS A and B separately by fund source;
3. Report of Cash Balances Form: This form requires the Successor Agency to report all
cash balances for each funding source in accordance with HSC section 34177(1), and;
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.
SAORA ITEM 2 01/10/17
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 17 -18
Following the RAD process for ROPS 17 -18, the estimated Redevelopment Property Tax Trust
Fund (RPTTF) to be disbursed is $7,101,408 subject to approval of the Oversight Board and
DOF.
Proposed
ROPS 17 -18
Amount Requested
Administrative
Budget
Estimated RPTTF
Disbursement Amount
RPTTF
$6,851,408
$250,000
$7,101,408
Along with preparing the Annual ROPS, the Successor Agency is required to prepare
administrative budgets for the six -month fiscal periods from July 1, 2017 through December 31,
2017 and from January 1, 2018 through June 30, 2018. The proposed Administrative Budgets
shall include estimated amounts for Successor Agency administrative costs that are to be paid
from property tax revenues deposited in the RPTTF.
Deadline to submit ROPS 17 -18
To comply with AB 113 and the upcoming February 1, 2017 deadline, it is recommended the
Successor Agency approve ROPS 17 -18 and the related Administrative Budget and transmit
these documents to the Oversight Board for approval. DOF has indicated late ROPS submission
will 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 DOF.
8. ATTACHMENTS
• Resolution No. SAORA -025
• Resolution No. SAORA -026
• ROPS 17 -18 and the Administrative Budgets for the July 1, 2017 to June 30, 2018
SAORA ITEM 3 01/10/17
RESOLUTION NO. SAORA -025
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, 2017 THROUGH JUNE 30, 2018,
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, 2017 through June 30, 2018 (ROPS
17 -18) and submit ROPS 17 -18 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 17 -18 to the Oversight Board for approval, the Successor
Agency must submit a copy of such ROPS 17 -18 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(l)(2) and Section 34177
(o)(1), the Successor Agency must: (i) submit the Oversight Board - approved ROPS 17 -18 to the
DOF, the Office of the State Controller, and the County Auditor - Controller no later than February 1,
2017, and (ii) post a copy of the Oversight Board - approved ROPS 17 -18 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 17 -18, 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 17 -18 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 17 -18 to
the Oversight Board for approval and, at the same time, transmit a copy of ROPS 17 -18 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 17 -18 to the DOF, the Office of the State Controller, and the County Auditor -
Controller. If the Oversight Board has not approved ROPS 17 -18 by February 1, 2017, Staff is
hereby authorized and directed to transmit ROPS 17 -18 to the DOF, the Office of the State
Controller, and the County Auditor - Controller by February 1, 2017, with a written notification
regarding the status of the Oversight Board's review. Written notice and information regarding the
action of the Oversight Board shall be provided to the DOF by electronic means and in a manner of
DOF's choosing.
RESO NO. SAORA -025
RESOLUTION NO. SAORA -026
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, 2017 THROUGH DECEMBER 31, 2017
AND FROM JANUARY 1, 2018 THROUGH JUNE 30, 2018, 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 identified 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, 2017 through
December 31, 2017 (Administrative Budget 17 -18A) and from January 1, 2018 through June 30,
2018 (Administrative Budget 17 -18B, together with Administrative Budget 17 -18A, 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 17 -18A and 17 -18B, 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.
Section 4 . Staff is hereby authorized and directed to submit the proposed
Administrative Budgets to the Oversight Board for approval.
RESO NO. SAORA -026
CITY COUNCIL MINUTES JANUARY 10, 2017
3. CONSENT CALENDAR (Continued)
RESOLUTIONS
3.14 Authorization of an interfund loan from the Capital Projects Fund to the Proposition
172 Sales Tax Fund. Resolution No. 10989. (C2500.J.1.5)
ACTION: 1) Approved Resolution No. 10989; 2) Authorized the appropriation of
$420,000 from the Proposition 172 Sales Tax Fund (120) unreserved fund balance to
expenditure account 120.0201.56510.20223; and 3) Authorized the appropriation of
$2,770,119 from the proceeds of the interfund loan from the Capital Projects Fund (500)
to expenditure account 120.0201.56510.20223.
3.15 Upholding Appeal No. 0546 -16 and approving construction of two residential units
and detached two car garage on property containing an existing single family
residence located at 730 West Palm Avenue. Resolution No. 10990. (A4000.0)
NOTE: Councilmember Alvarez voted no on this Item.
ACTION: Approved Resolution No. 10990.
3B. SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY
3.16 Authorization to approve Recognized Obligation Payment Schedule ( "ROPS ") for
the period of July 1, 2017, through June 30, 2018; Resolution No. SAORA -025; and
authorization to approve administrative budgets for the Successor Agency of the
Orange Redevelopment Agency; Resolution No. SAORA -026. (SA1000.0)
ACTION: 1) Approved Resolution No. SAORA -025 and Resolution No. SAORA -026;
and 2) Directed staff to transmit ROPS 17 -18 and related Administrative Budgets to the
Oversight Board of the Successor Agency to the Orange Redevelopment Agency.
MOTION — Murphy
SECOND — Whitaker
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Councilmember Alvarez recorded a no vote on Item 3.15. All other items on the Consent
Calendar were approved as recommended.
END OF CONSENT CALENDAR
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