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03.10 ROPS 7-1-19 through 6-30-20 oF-°Ra ��OPPOqqTR;�`I�� *� J��a AGENDA ITEM �ycF..'�m�e,y�PJ�� `b�►�° January 8, 2019 � TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager FROM: William M. Kolbow, Administrative Services Director�� REVIEW: City Mana r Finance �/� 1. SUBJECT Resolution No. SAORA-032 — 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, 2019 through June 30, 2020 (ROPS 19-20), pursuant to Health and Safety Code Section 34177, and taking certain related actions. 2. SUMMARY Approve the ROPS 19-20 for the period covering July 1, 2019 through June 30, 2020, and authorize the transmittal of ROPS 19-20 to the Oversight Board. 3. RECOMMENDED ACTION 1. Approve Resolution No. SAORA-032; and 2. Direct staff to transmit ROPS 19-20 to the Oversight Board of the Successor Agency to the Orange Redevelopment Agency. 4. FISCAL IMPACT The preparation and submittal of the ROPS 19-20 allows the Successor Agency to pay its enforceable obligations for the period from July 1, 2019 through June 30, 2020. Items listed on the ROPS 19-20 will be included in the City's FY 19-20 Annual Budget. The ROPS 19-20 shall become operative after it is approved by the Oversight Board and the State of California Department of Finance. 5. STRATEGIC PLAN GOALS Goal 1: Provide for a safe community a: Provide staffing and resources to deliver services that ensure public safety. Goal 2: Be a fiscally healthy community a: Expend fiscal resources responsibly. ITEM 3.�� O1/08/2019 6. DISCUSSION AND 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(0)(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, 2019 to June 30, 2020 (ROPS 19-20). 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 19-20A and 19-20B 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 cash balances and actual expenditures for ROPS 16-17 (07/01/16 — 06/30/17). 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 is separate and distinct from the ROPS template. Agencies are to report actual expenditure on a fiscal year basis, combining A and B periods and are required to submit the PPA form to the County Auditor-Controller (CAC) for review by Oct 1, beginning in ROPS 19-20. The PPA reporting form does not require an Oversight Board approval prior to submission to the CAC and the participation is voluntary for ROPS 19-20. Overview of ROPS 19-20 Following the RAD process for ROPS 19-20, the estimated Redevelopment Property Tax Trust Fund (RPTTF) to be disbursed is $5,831,550 subject to approval of the Oversight Board and DOF. Estimated Proposed Amount Administrative RPTTF ROPS 19-20 Requested Budget Disbursement Amount RPTTF $5,581,550 $250,000 $5,831,550 ITEM 2 O1/08/2019 Deadline to submit ROPS 19-20 To comply with AB 113 and the upcoming February 1, 2019 deadline, it is recommended the Successor Agency approve ROPS 19-20 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(0)(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. 7. ATTACHMENTS • Resolution No. SAORA-032 • ROPS 19-20 for the July 1, 2019 to June 30, 2020 ITEM 3 O1/08/2019 RESOLUTION NO.SAORA-032 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, 2019 THROUGH JUNE 30, 2020, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code Section 34177(0), 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, 2019 through June 30, 2020 (ROPS 19-20)and submit ROPS 19-20 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 19-20 to the Oversight Board for approval, the Successor Agency must submit a copy of such ROPS 19-20 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) and Section 34177 (0)(1), the Successor Agency must: (i) submit the Oversight Board-approved ROPS 19-20 to the DOF,the Office of the State Controller,and the County Auditor-Controller no later than February 1, 2019, and (ii)post a copy of the Oversight Board-approved ROPS 19-20 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 conect and are a substantive part of this Resolution. Section 2. ROPS 19-20, 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 19-20 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 19-20 to the Oversight Board for approval and,at the same time,transmit a copy of ROPS 19-20 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 19-20 to the DOF, the Office of the State Controller, and the County Auditor- Controller. If the Oversight Board has not approved ROPS 19-20 by February 1, 2019, Staff is hereby authorized and directed to transmit ROPS 19-20 to the DOF, the Office of the State Controller, and the County Auditor-Controller by February 1, 2019, 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. RE50 N0.SAORA-028 Section 5. Staff is hereby authorized and directed to post a copy of the Oversight Board-approved ROPS 19-20 on the Successor Agency's Internet website (being a page on the Internet website of the City of Orange). Section 6. The officers and other Staff inembers of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution,including but not limited to requesting additional • review by the DOF and an opportunity to meet and confer on any disputed items, and making adjustments to ROPS 19-20 pursuant to the DOF's instructions, and any such actions previously taken are hereby ratified and confirmed. PASSED AND ADOPTED this_day of January,2019. Mark A. Murphy Chairperson of the Successor Agency ATTEST: Pamela Coleman Clerk of the Successor Agency RESO N0.SAORA-028 I hereby certify that the foregoing Resolution was duly and regularly adopted by Governing Board of the Successor Agency to the Orange Redevelopment Agency at a regular meeting thereof held on the day of January, 2018,by the following vote: AYES: BOARD MEMBERS NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: Mary E.Murphy � Clerk of the Successor Agency RESO N0.SAORA-028 EXHIBIT A SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (July 1,2019—June 30,2020) RESO NO.SAORA-028 Recognized Obligation Payment Schedule(ROPS 19-20)-Summary Filed for the July 1,2019 through June 30,2020 Period Successor Agency: Orange City County: Orange 19-20A Total 19-20B Total Current Period Requested Funding for Enforceable Obligations(ROPS Detail) (July-December) (January-June) ROPS 19-20 Total A Enforceable Obligations Funded as Follows(B+C+D): $ . � 5,250 $ 15,300 $ 20,550 B Bond Proceeds , _ _ _ C Reserve Balance _ _ _ D Other Funds 5,250 15,300 20,550 E Redevelopment Property Tax Trust Fund(RPTTF)(F+G): $ 2,913,959:: $ 2,917,591 $ 5,831,550 . - -. F RPTTF . ..-. . ' 2,788,959 2,792,591 5,581,550 G Administrative RPTTF 125,000 125,000 250,000 H Current Period Enforceable Obligations(A+E): � ;, ; ' 2,979.,209 $ 2,932,891 $ 5,852,100 Certification of Oversight Board Chairman: , Pursuant to Section 34177 (o)of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Name Title Obligation Payment Schedule for the above named successor agency. �S� Signature Date Orange City Recognized Obligation Payment Schedule(ROPS 19-20)-Report of Cash Balances July 1,2076 through June 30,2017 (Report Amounts in Whole Dollars) funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form,see Cash Baiance Tips Sheet. A B C D E F G H Fund Sources Bond Proceeds Reserve Bala�ce Other Funds RPTTF Priar ROPS RPTTF and Reserve Rent, Non-Admin ROPS 16-17 Cash Balances Bonds issued on or Bonds issued on or Balances retained Grants, and (07/01/16-06l30/17) beforel2/31/10 after0l/Ot/11 forfutureperiod(s) Interest,etc. Admin Comments 1 Beginning Available Cash Balance(Actual 07l01/16) RPTTF amount should exclude"A"period distribution amount 2,670,045 1 1,310,405 1,094,943 6,078,970 E1:ROPS 15-16 PPA;Gt:ROPS16-17A RPTTF 2 Revenue/Income(Actual 06/30/17) RPTTF amount should tie to the ROPS 16-17 total distribution from the County Auditor-Controller G2:ROPS 16-17B RPTTF $2,499,552+ROPS 32,499 111 188,070 7,491,489 17-18A RPTTF$4,991,937 3 Expenditures for ROPS 16-17 Enforceable Obligatians (Actual O6/30/17) 3,563 69 94,053 7,664,607 F3+G3:ROPS 16-17 EXPENDITURE 4 Retention of Available Cash Balance(Actual 06/30/17) RPTTF amount retained should only include the amounts distributed , as reserve for future period(s) 4,991,937 G4:ROPS 17-18A RPTTF 5 ROPS 16-17 RPTfF Prior Period Adjustment - RPTfF amount should tie to the Agency's ROPS 16-17 PPA form submitted to the CAC No entry required 913,915 ROPS 16-17 PPA 6 Ending Actual Available Cash Balance(06/30M7) " CioF=(1+2-3-4),G=��:+2._3_4_5�:: :: . _. ..... . .._ . :. . .' �. . . . �. $ �. 2,698,981, � . ..�.�. 43 �$'. . 1,310;405 $ ....-1,188,960 .§. . . 0 Orange City Recognized Obligation Payment Schedule(ROPS 19-20)-ROPS Detail July 1,2079 through June 3Q 2020 (Re ort Amounts in Whole Dollars q B C D E F G H I J K L M N O P Q R S T U V W 19-20A(July-December) 19-208(January-June) Fund Sources Fund Sources ConlracVAgreemen� ContracVAgreement TotalOu�s�andinq ROP519-20 Reserve 19-20A Reservz 19-208 Ilem p Project Name/Debt ODligaiion Obligation Type Ezecu�ion Date Termina�ian Date Payee DeSCription/PmjeC�SCope ProleCi Area DeOt or OOligalion Retired Total BonO ProCeetlS BalanCe Olher Wnds RPTTF Atlmin RPTTF Tolal Bond Procee�s Balance Other Funds RPTTF Atlmin RPTTF Total S 56.954,814 5 5,852,100$ 0 5 0 5 5250 5 2,�88,959 S 125.000 5 z,919,209 5 0 5 0 9 15,300 S 2,792,591 $ 125,000 S 2.932.891 2 2008 A8B antl 2014A Bontls Fees 6/1/1997 9/1/203] US Bank Fiscal a enf fees Oran e Mer etl 174.165 V 5 5 5 3 2008 A88 antl 2014A Bontls Fees 6/1/1997 9/V203] Willtlan BOnd tlisclo5ure lee Orange Merged 172450 V S S 5 4 2008 A&B antl 2014A Bon05 Fees 5/22/2012 9/V2037 RichartlS.Walson 8 Bantl counsel Orange Mergetl i6,W0 N S 5,000 2500 S 250C 25C0 S 7,500 Gershon 8 Oranqe Ciry Mills Busmess Incentive 9/10/1996 V20/2019 Milis Limitetl Partnership Pmmissory note basatl on Orange Merged 0 V $ - 5 , . I � Agreemenis pedormance i 4 "19R9r757ii9lf�i.. - Unfun4etlLiebilipd�:.i^�''`. �E17999 '.�.�7�6/2039 :� Ca1PEPS � FUt' ` .c;� d=�. , ��` , ,.� :;':%Y' . "L,. ' .. � ' . ; E—:�. �t'�e ,`'' � $ 60 2008 Tax Alloca�ion Bontls�Series Bontls Issuetl On or Before 5/1!2008 5/1/2038 US Bank To funtl Orange Merged&Amenaea Orange Mergetl 0 V $ S S A iti31110 61 2008 Tax Alloca�ion Bontls Series Bontls Issuetl On or Before 5/V2008 5,'1/2038 US Bank To fund Orange Mergetl&Amenaea Orange Merged 5.623,738 N $ 653.550 378209 5 328209 325,341 5 325.341 8 1&31/10 �0 Successor Agency AtlminisVa�ive Atlmin Costs 8/16/1983 7i5/2039 various Costs br mainlaining Successor Orange Mergetl 250,000 N S 250,000 125.000 S 125,000 125.Of,0 S 125,000 Costs A9ency operalions 128 2074 Tax Albca�ion Refuntling Bontls Issuetl Aker 12/31/10 12/4/2014 9/V2023 US Bank 2014 Bond Re�untling o��he 199]Tax Orange Mergetl 18,126,500 N 3 4,018.000 2,005,�50 S 2,005,750 2,012,250 5 2012,250 Bontls SerieS A Allocation Pari�y Bontls,Selies A antl the 2003 Tax Allocation ReFundinq eonos,Series A. DOF approved ResoW�ion No.OB-0055�ha� aut�orizetl ihe bon0 refuntling and issuance. 130 2018 Tax Alloca�ion Pefunding Bonds Issued Al�er 12;31/10 7/12/2018 9i V2036 US Bank 2018 Bond Fefuntling ot Ne 2008 Tax Orange Mergetl 32,424J 71 N S 910,000 455.000 5 455,000 455,000 S 455,000 Bontls Series A Alloca�ion Bon05,Series A. DOF approvetl Resolution No.OB-0078 ihal au�horizetl Ne bontl refuntling antl issuance. 131 200BB,2014A,8 2018A Bontls Fees 6;1!199] 9/V2036 US Bank Fiscal ageni�ees Orange Mergetl 87,700 N $ 7,300 2750 5 2T0 4,550 S 4,550 132 20086,2014A.8 2018A Bonas Fees 6;1%1997 9/1/2036 Willtlan BonOs disclosure/afbi�raqe�ees Oranqe Mergetl 79,6W N 3 8,250 $ 8250 5 8,250 133 N 5 $ S 134 N S $ 5 135 N 5 S 5 136 N 5 $ y 137 N $ - $ - $ - 138 N 5 $ $ 139 N $ $ S 140 N $ $ 5 1G1 N 3 $ S 142 N 3 $ 5 143 N 3 $ $ 144 N 5 S 5 145 N 5 $ $ 146 N $ $ 5 147 N 5 $ S 148 N 3 $ 5 149 N 5 $ S 150 N $ - $ - $ - 151 N S $ S 152 N S - $ - 5 - 153 N S j 5 154 N 5 $ S 155 N 5 - $ - S - 156 N 5 $ S 157 N S $ S 158 N $ $ S 159 N 5 $ S 160 N S $ S 161 N S $ S 162 N 5 $ 5 163 N 5 $ S 164 N S $ 5 165 N 5 $ $ 7fi6 N S $ S i6l N 5 $ 5 168 N S $ S 169 N S $ S n0 N 5 $ S 171 N S $ 5 172 N 5 g 5 173 N 3 $ g P4 N S $ S 175 N 5 $ S 176 N S $ 5 177 N 5 $ S 178 N S $ $ 179 N $ $ $ 180 N S g g 181 N S $ g 182 N $ $ 5 183 N 3 $ $ 184 N $ $ 3 185 N S $ g 186 N 3 $ $ 18] N $ $ 5 Orange City Recognized Obligation Payment Schedule (ROPS 19-20) - Notes July 1, 2019 through June 30, 2020 Item# Notes/Comments 130 New item-2018 Tax Allocation Refunding Bonds 131 Replace item 2 due to 2018A Refunding bonds 132 Replace item 3 due to 2018A Refunding bonds CITY COUNCIL MINUTES JANUARY 8, 2019 3. CONSENT CALENDAR(Continued) 3.7 Claims for Damages. (C3200.0) ACTION: Denied the following claims for damages and referred to City Attorney and Claims Adjuster: a. Judith Lowery b. Spencer Muir c. Mercury Insurance a/s/o Devon Cox d. Maria De Lourdes Espinoza e. Elain Nermon f. Douglas Campbell g. Orange Unified School District 3.8 Award of contract to Alfaro Communications Construction, Inc. for Tustin Street and Meats Avenue Intersection Right Turn Lane Improvements project;Bid No. 189- O5. (A2100.0; AGR-6735) ACTION: 1) Rejected the bid received from the first apparent low bidder, Sequel Contractors, Inc., Santa Fe Springs, California, a California Corporation, on the basis that the bid was non-responsive; and 2) Awarded the contract in the amount of$573,355 to Alfaro Communications Construction, Inc. of Compton, California; and authorized the Mayor and City Clerk to execute the contract on behalf of the City. 3.9 Submittal of Transportation Improvement Projects to the Orange County Transportation Authority. Resolution No. 11130. (T2200.0) A Resolution of the City Council of the City of Orange approving the submittal of transportation improvement projects to the Orange County Transportation Authority for funding under the Project"W" of the Comprehensive Transportation Funding Program. ACTION: Approved Resolution No. 11130. 3B. SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY 3.10 Authorization to approve the Recognized Obligation Payment Schedule ("ROPS") for the period covering July 1,2019, through June 30,2020. Resolution No. SAORA- 032. (SA1000.0) 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, 2019, through June 30, 2020 (ROPS 19-20), pursuant to Health and Safety Code Section 34177 and taking certain related actions. ACTION: 1) Approved Resolution No. SAORA-032; and 2) Directed staff to transmit ROPS 19-20 to the Oversight Board of the Successor Agency to the Orange Redevelopment Agency. PAGE 5