09-20-2016 - Approval and Transmittal of an Amended Recognized - Item No. SA1 (2).pdfTO:
City of West Covina
Memorandum
AGENDA
ITEM NO SAl
DATE September 20, 2016
FROM:
Successor Agency Board Members
Chris Freeland
Executive Director
BY: Christa Buhagiar
Finance Director
SUBJECT: APPROVAL AND TRANSMITTAL OF AN AMENDED RECOGNIZED
OBLIGATION PAYMENT SCHEDULE "ROPS" PURSUANT TO
HEAL TH AND SAFETY CODE SECTION 34177(0)(1), FOR THE PERIOD
OF JANUARY 1, 2017, THROUGH JUNE 30, 2017, FOR THE SUCCESSOR
AGENCY TO THE FORl\1ER WEST COVINA REDEVELOPMENT
AGENCY
RECOMMENDATION:
It is reconunended that the City Council, acting as the Successor Agency to the fonner West
Covina Redevelopment Agency, adopt the following resolutions:
RESOLUTION NO. 2016-79 -A RESOLUTION OF THE SUCCESSOR
AGENCY TO THE FORl\1ER WEST COVINA REDEVELOPMENT
AGENCY APPROVING AND AUTHORIZING THE TRANSMITTAL OF
AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE
"ROPS" FOR THE PERIOD OF JANUARY 1, 2017, THROUGH JUNE 30,
2017, FOR THE SUCCESSOR AGENCY TO THE FORMER WEST
COVINA REDEVELOP1\1ENT AGENCY
DISCUSSION:
In accordance with Health and Safety Code Section 34177(0)(1), the Successor Agency is required
to file a ROPS amrnally in order to receive a distribution of property tax increment dollars with
which to fund the obligations of the former Redevelopment Agency. These obligations include
bond debt service payments, amounts due under existing agreements with commercial property
owners, repayment of amounts bonowed from the Housing Fund to fund property tax shifts
mandated by the State, cost of litigation to protect assets of the fom1er Redevelopment Agency,
repayment of loans to the City, and administrative costs of the Successor Agency to wind down
the affairs of the fonner Redevelopment Agency. While many of these listed items are not
necessarily debt, they are considered obligations for purposes of this mandated report and must be
listed on this report if they are to be funded with distributions of future tax increment dollars. These
items are not debt obligations of the City of West Covina.
The West Covina Successor Agency submitted the approved ROPS 16-17 to the Depaitment of
Finance (DOF) and on April 14, 2016, the Successor Agency received the DOF's dete1111ination
letter. Pursuant to SB 107, this is the first aimual ROPS submittal.
Pursuant to HSC section 34177 ( o) (1) (E), once per Recognized Obligation Payment Schedule
period, and no later than October 1, a successor agency may submit one amendment to the
Recognized Obligation Payment Schedule approved by the department pursuant to this
subdivision, if the oversight board makes a finding that a revision is necessary for the payment of
approved enforceable obligations during the second one-half of the Recognized Obligation
Payment Schedule period, which shall be defined as January 1 to June 30, inclusive.
The total amount of funding approved for enforceable obligations from the Redevelopment
Property Tax Trust Fund (RPTTF) on ROPS 16-17 was $12,234,251 and included many of the
saine items that have been previously approved by DOF.
The attached Amended ROPS 16-l 7B (Attachment No. 2) includes revised numbers for the
following:
Item #11 -Repay County Loan -An increase of $199,356 is being requested to cover the total
invoice amount due of $1 ,699,3 55.14. Staff originally estimated $1,500,000 since the past two
years had not exceed that amount.
Item #80 -Reimbursement for Litigation Expenses -An increase of $24,880.65 is being requested
to reimburse the City of West Covina for litigation expenses incmTed during February 2012 -
December 2012. Staff has been working with DOF to receive reimbursement for these expenses
and DOF has informed staff to add them on approved ROPS line items to seek the reimbursement.
LEGAL REVIEW:
The Successor Agency Counsel has reviewed and approved this report, the resolution and the
Recognized Obligation Payment Schedule.
FISCAL IMPACT:
The City, as Successor Agency, cannot receive or spend any funds unless the amounts are listed
on a Recognized Obligation Payment Schedule. This schedule identifies all outstanding
obligations that must be satisfied before the Agency can be di ssolved. The obligations listed on
this schedule will receive property tax allocations distributed by the County as their funding
source.
Prepared by:
jllPru.~ •uli~W Cfuista Buhagia Paulina Morales
Finance Director Economic Development & Housing Manager
ATTACHMENTS:
Attachment No. 1 -Resolution No. 2016-79
Exhibit A -Amended Recognized Obligation Payment Schedule (ROPS 16-1 7B)
ATTACHMENT NO. 1
RESOLUTION NO. 2016-79
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
WEST COVINA REDEVELOPMENT AGENCY APPROVING AND
AUTHORIZING THE TRANSMITTAL OF AN AMENDED RECOGNIZED
OBLIGATION PAYMENT SCHEDULE "ROPS" FOR THE PERIOD OF
JANUARY 1, 2017, THROUGH JUNE 30, 2017, FOR THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT
AGENCY
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has
enacted and the Governor has signed, companion bills AB 1 X 26 and AB 1 X 27, requiring that each
redevelopment agency be dissolved unless the community that created it enacts a resolution
c01mnitting it to making certain payments; and
WHEREAS, on December 29, 2011, the California Supreme Court upheld ABlX 26,
which dissolved all of the redevelopment agencies in the State of California as of February 1, 2012,
and struck down ABlX 27; and
WHEREAS, at a meeting of January 10, 2012, the City of West Covina took action to
designate itself as the Successor Agency to the fonner West Covina Redevelopment Agency; and
WHEREAS, Pursuant to Health and Safety Code Section 34177 ( o) (1 ), co1m11encing with
the ROPS covering the period from July 1, 2016 to June 30, 2017 and thereafter, agencies shall
submit an Oversight Board approved amrnal ROPS to Finance and the County Auditor-Controller
by February 1, 2016 and each February 1 thereafter; and
WHEREAS, Pursuant to Health and Safety Code Section 341 77 (o) (1) (E), once per
ROPS period, and no later than October 1, a successor agency may submit one amendment to the
ROPS approved by the Department of Finance.
WHEREAS, the West Covina City Council, acting as Successor Agency to the forn1er
West Covina Redevelopment Agency, reserves the right to appeal any detennination of the
California Director of Finance or other entity regarding the propriety of this resolution as well as
any future detenninations; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the fonner
West Covina Redevelopment Agency, intends to comply with the state-mandated obligations
established hereunder; and
WHEREAS, all other legal prerequisites to the adoption of this resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the West Covina City Council, acting as
Successor Agency to the fonner West Covina Redevelopment Agency, as follows:
SECTION 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
SECTION 2. The Amended Recognized Obligation Payment Schedule "ROPS" attached
hereto as Exhibit "A" is approved and the Executive Director is authorized to submit the Amended
ROPS to the Oversight Board for approval and transmit the same to the Los Angeles County
Auditor-Controller, the State Controller and the State Department of Finance in accordance with
Health and Safety Code Section 34177 subject to all reservations of rights and contingencies set
forth above.
SECTION 3. The Executive Director or designee is authorized to take all actions
necessary to implement this Resolution, including without limitation, the posting of this Resolution
and the Recognized Obligation Payment Schedule on the City's website, and the provision of
notice of adoption of this Resolution and such Schedule to the County Auditor-Controller, the
State Controller and the State Department of Finance.
SECTION 4. The Secretary shall certify as to the passage and adoption ofthis Resolution,
and it shall thereupon take effect and be in full force.
PASSED, APPROVED AND ADOPTED at a regularly scheduled meeting held on this
20111 day of September 20, 2016.
APPROVED AS TO FORM:
Kimberly Hall Barlow
Successor Agency Counsel
James Toma
Chairman
ATTEST:
Nickolas S. Lewis
Secretary
Successor Agency:
County:
Amended Recognized Obligation Payment Schedule {ROPS 16-17B) -Summary
Filed for the January 1, 2017 through June 30, 2017 Period
West Covina
Los Angeles
ROPS 16-178 ROPS 16-17B
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) Authorized Amounts Requested Adjustments
A Enforceable Obligations Funded as Follows (B+C+D): s 684,600 S
B Bond Proceeds
C Reserve Balance
Other Funds D
E
F
Redevelopment Property Tax Trust Fund (RPTTF) (F+G): s
684,600
4,877,599 S
RPTTF
G Administrative RPTTF
H Current Period Enforceable Obligations (A+E):
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 Obligation Payment Schedule for the above
named successor agency. /s/
4,877,599
$ 5,562,199 $
Name Title
------------------
Signature Date
s
199,356 S
199,356
199,356 $
Exhibit A
ROPS 16-17B
Amended Total
684,600
684,600
5,076,955
5,076,955
5,761,555
Uem # I Pfotect N~Obllo .. tion
ii: ~=:~ .. tioo Ek:nb
312006 Lease R!M!!nUel. Bends
41 1M Housing~ A$1de Bonds
&j2001 Housing Sei: Aud& Bonds
OtiligationT)'P9
eondRe1mbursemer,1
Bends lssood On a Before
12/31110
Bend Reimbu,s.ement
~reements
Bonds lswed On Of Before
12/31110
Bonds !&wed Ono, Be(o,e
12131/10
Toi.I Outstar'lding
Wost Covina Amondod Recognized Obligntion P.nyment Schodulo (ROPS 16-176) • ROPS Oetnil
January 1, 2017 through June 30, 2017
(R~~rt Amounts in Whole Dollar~
AUTHORIZED AMQIJNTS
Fund Sources
Balalce 15.36911, ~_p_r05J~S Re~Ba131lCe 01herfunds ~Is RPTIF 1. Admin RPTIF 011509 f __ . f_s Tatel _ i _BendProc~s
5~~2'JP9 _1. -"-979.516
1.220.600
434,248
7&l,288
___j,QQ!)_
151,343
785,333 ......
139,063
151.343
785.333 .. ....
139,083
-R~QU£SI£D ADJUSTMENTS
Fund Sources
Reservef;1~ar,ee ~s __ -} .c. ... --'. '.-1 RP!!~ ..... 1 t. Admin RPTIF ·-
Le SERAF2010Ha.l~Loan SERAFJERAF $ 3.160.818 255\IJ~' --~--------"~\/~. • J SERAF 2011 Hou Leen SERAFIERAF $ 744,377 65.~:'~. . ! ~! ~:''.!.
I DOA. The uike, OPAt'(X)A/CQnslri,M;.lion $ 320.000 120
:: CF0Taio:1ncr_~tp_ledge OPAIOOA/Ccnslruelion $ 1.700.000 850 __ '-" ~·--"--~-"~---___ ,_
Remediation $ 77040 38. "'W~~~~f;:::;=========tT~hK~d~.P~•~L-~•===t~•===+··~'°°~·~°"'~====+====+====t===]:,so~~====~ :c ·I ·I I • . ---· I I I n:
~-.. :~~<f~~;a:~ls
JOI~sl!JhlBoard Leqai~Ylees
nJSucc.essor Aoenc_y_Leoat SN\'lces
EE= . ..._
•I-TM-
.:I\ 1996 CFO RefU'ldlng B<inds
2t! 1968 Lease Rev Refunding Bonds
'°'OPA ·CFO
1!
/'r
Prqe,c1 Manaoement Coots
QiG&OtvborlAud1tli
..!:!gal • ; .: ;:(:Jf!:: .
,«f .....
illJ,oii,l,-llii• _..,,.!
Bonds lnoed Ono, B~o.-e
12131/10
Re¥enUeBoncls1s~ued0no, I$
Bef0t:e 12131110
Qf'~A/Cortstrucboo
...... -.. ·--·-·· . -.. •t:•·· I 1-.. -1 I · 1 -··;--' f'"" "''>!L'z.rl';,J;',~ I , ,:: ' '
··"" .---=r~ ~ ! • ·, --
'. JI,?,! >'. r·-:·:· .·i r.· .;,,
r ; . ' ',,.,. ' -I .. :·;-., P.·,:··c:: ',· /,,·1~.~:~iltJ
:, ,,. -'' >~~j. t~·~: ,,, ;
<r .. ~ I . :. ".~ .. 1--::-" . ·':, ~-·:'' ~·-;:
-·
4.242.900 684,600 .......
580.000 2,500 2.500
895_,.000
T°"' ""'~ ~ .. ~.~
~
;~r -,-~~-;:-"':.?;t·;::
·"
~
'!I 1M · 200e Bonds
& 1906 -2006 Bonds
7 1996 -2006 Bonds
48 '* -20oe Bondi:
·~· ;;;;;; 21,500
80,000
10,000
6~000
10.750
40.000
101~ s ____ _, ____________ _ '°"" .l ;;;;;; .... ~ 3_,.000
l-·--~ Unfunded PenSIOrl Lilibiijt,n Unfunded Uabilities S 8$1,484 44.732 J.
Unfunded Ullbi~~ S 28,194 14_,.097 51IR.,ement UIIIWll'its 54f Cori!Jacl\.lA Services ROPS/Prooer.!Y_ P\iwl
1---~7 Public Notices ~ S As.:iese.meotsonROA-odned ceb eo ~19 A,~~ts on RDA-owoed ~eels
67 P I Adminislr,.live Costs 'io HaMn knoorts P•tners
11 Ctll\Jtw1:i EmirlenC Doman
7C!LOIIO A!lreemenl
aoJAntic..!e!_ted/EJl:lsbnQ Utiqation
91]ROPSPreosaoon
Profess,onsl ~,ik:es I $ 30})00
PtopertyOi~lions
P,o;ect ManSQCmeot Costs
Profe,ct Man&Qement Cos1s
Project Mlnagement Com
Utiofttion Llbaahon
Unfuoded Liabilities
LitiQ•lion
Pfd;~~vices
·--.--
,.
I
_,, iiiii&
ProjectMM.s::.=. '~
AdminCosls
= ~ 1~000
30,000 -= 35}Xl0
46.,_413
50,000
100.000
fl 193.,,630
7.,,000
3_,.300
6_.000 IJ
1~000
5i000
.,-..
5.,_0001
6i6581
•ooo
3~
·~.J.32 t
14 097
"~~ ·!•-----+------------
~""
.,
·::J I I I I tJ
'""
e,e~
~ ==m
I
.• .,
llemtt I Ptol«tN~C)~•liori
105jCash flow Loan -,""_......,.. ObllaationTwe
Cil)il'County Loon (Prior
oe/28/11),CHhexc:hMOe
TOUIIOul$!.llnd,ng
West Covinn Amended Recognized Obligation Pnymont Schodulo (ROPS 1 ~17B) • ROPS Detail
January 1, 2017 through Juno 30, 2017
(Report Amounts in Whole Dollars)
AUTHORIZED AMOUNTS
Fund Sources
_RE.QUESTEO_AOJUSTME;NTS
Fund Sources
e.imce II Bond Proceed$ I R'!ls_~--~alance Other food$ RPTTF I Admio RPTTF Total I Bond Proceeds I Reserve 8&18nCe_ QQ:i~_funds RPTTF
2,968,750 1,464,215 148-4215
'rJhliol"l-• •I t
AdmlnRPTTF '"" -·
1 H-') 1"°8•200eBond, fe«i s 1,-48811 J J :J --:-r l' .-, I 1 I 1 T$ ::~===s ::: : !:::: .r ·I :---I I I I :--------l1-------------
Hf1~=~=1r~;eoott ~= : 1
~:::: -I ~:: :--~~ I I •c-------+------------
120 Cootrac:tuel Services (Gonsaf...es & Son's)(Jan.June Pn,,reuiOntil s«,.,ices S 15,000 11
20161
119 Pf ectAdministratiw.Costs H!Plit,;iiabool Pr tt.la"I ementCot.ts $ !HOO
Pf eel Adminr.;lratlwi Costs Caltlans UIQlallon Pr eel MM t ~fG $ 4,884 I _