01-31-2012 - Approval and Transmittal of a Revised Enforceable - Item 1 (2).pdfCity of West Covina
Memorandum
AGENDA
TO: Andrew G. Pasmant, Executive Director •
and the Community Development Commission
FROM: Thomas Bachman
Assistant City Manager/Finance Director
Item No.: 1
Date: January 31, 2012
SUBJECT: APPROVAL AND TRANSMITTAL OF A REVISED ENFORCEABLE
OBLIGATIONS PAYMENT SCHEDULE (EOPS) AND UPDATED DRAFT
RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS)
PURSUANT TO AB1X 26
RECOMMENDATION:
It is recommended that the Community Development Commission adopt the following
resolution:
RESOLUTION NO. A RESOLUTION OF THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA
APPROVING AND AUTHORIZING THE TRANSMITTAL OF THE REVISED
ENFORCEABLE OBLIGATIONS PAYMENT SCHEDULE (EOPS) AND THE
UPDATED DRAFT RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE
(ROPS) PURSUANT TO ASSEMBLY BILL 1X 26 (AB1X 26)
DISCUSSION:
On January 17, 2012, the Community Development Commission Board adopted an Amended
Enforceable Obligations Schedule and a Draft Recognized Obligations Payment Schedule
detailing West Covina's redevelopment obligations for the remainder of the 2011-12 fiscal year.
Based on the best information available at that time, those schedules did not include a
continuation of the housing set aside payments to the housing successor agency beyond the end
of January 2012. Recent legal analysis has advised redevelopment agencies to include these
housing contributions on both the enforceable and the recognized obligation payment schedules
before the successor agency takes over on January 31, 2012. As a result, the estimated
obligation was increased to include all set aside funds projected over the remaining life of the
project areas. Staff also increased the obligation for asset protection from $2.5 to $5 million due
to the uncertainties of the transition process. There were also some other minor adjustments to
the payment schedule. This gives the successor agency funding to take whatever actions are
needed to protect its interests and implement AB1X 26.
FISCAL IMPACT:
Assembly Bill AB1X26 eliminates redevelopment agencies as of February 1, 2012 and
establishes successor agencies to pay debt and wind down the operations of the former
redevelopment agency. The City has previously elected to be the successor to the West Covina
Redevelopment Agency. The City, as successor agency, cannot spend any funds unless the
amounts are listed on the Enforceable Obligations Payment Schedule (Attachment 2). The
Reportable Obligations Payment Schedule (Attachment 3) will be used by the Successor Agency
to identify outstanding obligations that must be satisfied before the Agency can be dissolved and
the funding sources to be used.
Prep'aredT59-: 'Forn-Bachnian
Finance Director
Attachments: No. 1 — Resolution
No. 2— Updated Enforceable Obligations Payment Schedule
No. 3— Revised Draft Reportable Obligations Payment Schedule
Finance does/Agenda Items/CDC/enforceable Obligations 01-17-12
Attachment 1
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA APPROVING AND
AUTHORIZING THE TRANSMITTAL OF THE REVISED
ENFORCEABLE OBLIGATIONS PAYMENT SCHEDULE (EOPS) AND
THE UPDATED DRAFT RECOGNIZED OBLIGATIONS PAYMENT
SCHEDULE (ROPS) PURSUANT TO ASSMBLY BILL 1X 26 (AB1X 26)
WHEREAS, the Community Development Commission of the City of West Covina
("Commission") is a community development commission organized and existing under and
pursuant to the California Community Development Commission Law (Part 1.7 of Division 24,
commencing with Section 34100, of the Health and Safety Code of the State of California) (the
"CDCL"); and
WHEREAS, the City Council of the City of West Covina ("City") approved and adopted
the Redevelopment Plans for the following Redevelopment Projects ("Redevelopment Plans")
covering certain properties within the City (the "Project Areas"):
1. On December 20, 1971 the West Covina City Council adopted the original Central
Business District Redevelopment Project Area by adoption of Ordinance No. 1180.
2. On July 14, 1975 the West Covina City Council adopted the original Eastland
Redevelopment Project Area by adoption of Ordinance No. 1269.
3. On December 21, 1993 the West Covina City Council approved the Merger of the
Central Business District and the Eastland Redevelopment Project Areas by adoption of
Ordinance No. 1927 and Ordinance No. 1928, which adopted the merged area as the West
Covina Redevelopment Project Area and added three non-contiguous areas to the merged project
area; and
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has
recently enacted and the Governor has signed, companion bills AB 1X 26 and AB 1X 27,
requiring that each redevelopment agency be dissolved unless the community that created it
enacts a resolution committing it to making certain payments; and
WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions,
effective immediately and purportedly retroactively, and additionally provides that agencies are
deemed to be dissolved as of October 1, 2011; and
WHEREAS, additionally, AB 1X 26 which eliminates redevelopment agencies also
requires all Agencies to wind-down their affairs unless the Agencies are extended through
compliance with the requirements of AB 1X 27; and
WHEREAS, the California Supreme Court on August 11, 2011 issued a partial stay
("Stay") on the operative effects of ABX1 26 in the case of California Redevelopment
Association, et al. v. Ana Matsonantos, et al. Case No. S194861.
WHEREAS, on December 29, 2011, the California Supreme Court upheld AB1X 26,
which dissolves all of the redevelopment agencies in the State of California, and struck down
AB1X 27; and
WHEREAS, as part of the wind down process, all redevelopment agencies are required
to file a schedule of "enforceable obligations"; and
WHEREAS, under the threat of dissolution pursuant to AB 1X 26 (Health and Safety
Code Section 34169(h)), the Agency established the foregoing Enforceable Obligation Payment
Schedule (the "Schedule") to be able to continue eligible redevelopment activities that were
begun prior to the effective date of AB 1X 26; and
WHEREAS, Health and Safety Code Section 34169(h), which is set forth in Part 1.8,
requires a redevelopment agency to prepare a preliminary draft of a Recognized Obligation
Payment Schedule, which must list the minimum amounts that must be paid by the successor
agency over a six (6) month period to fulfill its enforceable obligations during that period, with
the first schedule covering the period from January 1, 2012 to June 30, 2012; and
WHEREAS, at a meeting of January 10, 2012, the City of West Covina took action to
designate itself as the Successor Agency and the Housing Successor Agency to the Community
Development Commission, as provided in California Health and Safety Code §§ 34173 and
34176; and
WHEREAS, the Commission reserves the right to appeal any determination of the
California Director of Finance or other entity regarding the propriety of this resolution as well as
any future determinations; and
WHEREAS, while the Agency currently 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 Community Development
Commission of the City of West Covina, 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 Revised Enforceable Obligations Payment Schedule attached hereto
as Exhibit "B" is approved and the Executive Director is authorized to transmit the same to the
Los Angeles County Auditor-Controller, the State Controller and the State Department of
Finance and the Successor Agency in accordance with Health and Safety Code Section 34169
subject to all reservations of rights and contingencies set forth above.
SECTION 3. The Updated Draft Recognized Obligations Payment Schedule attached
hereto as Exhibit 'V" is approved and the Executive Director is authorized to transmit the same
to the Los Angeles County Auditor-Controller, the State Controller and the State Department of
Finance and the Successor Agency in accordance with Health and Safety Code Section 34169 subject to all reservations of rights and contingencies set forth above.
SECTION 4. 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 Revised Enforceable Obligation Payment Schedule and the Updated
Preliminary Initial Recognized Obligation Payment Schedule on the Agency's website, and the
provision of notice of adoption of this Resolution and such Schedule to the Successor Agency,
the County Auditor-Controller, the State Controller and the State Department of Finance.
SECTION 5. The Agency Secretary shall certify as to the passage and adoption of this
Resolution, and it shall thereupon take effect and be in full force, except that this Resolution
shall not be effective during any period of time that the Stay remains effective.
APPROVED AND ADOPTED at a regular meeting of the Community Redevelopment
Commission of the City of West Covina this 31st day of January 2012.
Chairperson Mike Touhey
ATTEST:
Assistant Commission Secretary Susan Rush
I SUSAN RUSH, ASSISTANT COMMISSION SECRETARY, of the City of West Covina
Community Development Commission do hereby certify that the foregoing resolution was duly
adopted by the Community Development Commission of the City of West Covina at a meeting
thereof held on the 31st day of January 2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Assistant Commission Secretary Susan Rush
APPROVED AS TO FORM:
General Counsel to the CDC
Name of Redevelopment Agency: West Covina Community Development Commission Project Area(s) Merged & Citywide Attachment 2 UPDATED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34167 and 34169 Project Name / Debt Obligation Payee Description Total Outstanding Debt or Obligation Total Due During Fiscal Year Payments by month Jan Feb March April May June Total 1) 1999 Tax Allocation Bonds US Bank Fund capital projects in the Merged Area 8,897,866.00 278,200.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 136,100.00 $ 141,600.00 2) 2002 Tax Allocation Bonds US Bank Repay outstanding 1993 bonds * 13,134,847.00 1,763,738.00 217,736.00 777,736.00 $ 995,472.00 3) 1996 CFD Refunding Bonds US Bank Fund Fashion Plaza Improvements * 51,170,899.00 6,483,500.00 1,028,700.00 2,798,700.00 $ 3,827,400.00 4) 1988 Lease Rev Refunding Bnds Wells Fargo Bank Fund the Lakes Parking Project* 6,847,414.00 871,856.00 4,738.00 4,738.00 4,738.00 4,738.00 4,738.00 429,738.00 $ 453,428.00 5) BLD Debt Service City of West Covina Reimburse City for BLD Debt Service 33,716,425.00 1,103,000.00 91,917.00 91,917.00 91,917.00 91,917.00 91,917.00 91,917.00 $ 551,502.00 6) SERAF 2010 Housing Loan Housing Successor Agy Repay SERAF to the housing fund 6,529,308.00 1,632,327.00 - - - - - 1,632,327.00 $ 1,632,327.00 7) SERAF 2011 Housing Loan Housing Successor Agy Repay SERAF to the housing fund 1,342,977.00 266,595.00 - - - - - 266,595.00 $ 266,595.00 8) DDA - The Lakes Various Bond admin & maint for park structure 1,800,000.00 210,000.00 105,000.00 - - - - - $ 105,000.00 9) OPA - CFD . Westfield et al CFD admin & Developer repayment 7,652,298.00 1,050,000.00 - - - - - 900,000.00 $ 900,000.00 10) SB2557 Admin County of Los Angeles Tax Collection Services 9,428,048.00 256,000.00 21,333.00 21,333.00 21,333.00 21,333.00 21,333.00 21,333.00 $ 127,998.00 11) Housing Set Aside Low Mod Hsg Authority 20% Set Aside for low mod hsg 132,336,995.00 3,783,600.00 315,300.00 315,300.00 315,300.00 315,300.00 315,300.00 315,300.00 $ 1,891,800.00 12) Nissan Sales Tax Guarantee Sage Nissan Sales Tax Contribution Agreement 800,000.00 - - - - - - - $ - 13) Passthrus Other taxing entities Passthrus per agreements and code 338,111,418.00 3,922,000.00 326,833.00 326,833.00 326,833.00 326,833.00 326,833.00 326,833.00 $ 1,960,998.00 14) Repay County Deferral County of Los Angeles Begin repayment 10,085,562.00 1,340,325.00 137,388.00 137,388.00 137,388.00 137,388.00 137,388.00 1,340,325.00 $ 2,027,265.00 15) Non personnel operation cost Various Operations for both project areas 75,979,376.00 2,470,889.00 205,907.00 205,907.00 205,907.00 205,907.00 205,907.00 205,907.00 $ 1,235,442.00 16) Employee Costs Various employees Salaries and benefits for personnel 58,767,980.00 1,728,470.00 144,039.00 144,039.00 144,039.00 144,039.00 144,039.00 144,039.00 $ 864,234.00 17) Asset Protection Various Enforcement of obligations 5,000,000.00 1,800,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 $ 900,000.00 18) CSS - CFD CSS Corn Fac Dist CFD Assessment 4,803,381.00 73,370.00 6,115.00 6,115.00 6,115.00 6,115.00 6,115.00 6,115.00 $ 36,690.00 19) City Note - Administration City of West Covina Repay City for admin & construction 19,789,504.00 1,483,600.00 123,633.00 123,633.00 123,633.00 123,633.00 123,633.00 123,633.00 $ 741,798.00 20) City Note - CIP City of West Covina Repay City for capital projects 3,604,284.00 259,783.00 21,649.00 21,649.00 21,649.00 21,649.00 21,649.00 21,649.00 $ 129,894.00 21) City Note Revolving City of West Covina Repay City for revolving credit 8,318,522.00 556,617.00 46,385.00 46,385.00 46,385.00 46,385.00 46,385.00 46,385.00 $ 278,310.00 22) Sales Tax Reimbursement City of West Covina Reimburse City for CFD Sales Tax 32,288,686.00 1,006,336.00 83,862.00 83,862.00 83,862.00 83,862.00 83,862.00 83,862.00 $ 503,172.00 23) City Line Of Credit City of West Covina Line of Credit for Merged Area 5,375,000.00 5,375,000.00 5,218,750.00 - - - - - $ 5,218,750.00 24) Cooperation Agreement Various 46 Projs (less golf crse) under coop agmt 415,840,000.00 - - - - - - - $ - 25) Golf Course Agreement Various Golf Course Implementation Agreement 45,000,000.00 - - - - - - - $ . - 26) 1998 Housing Set Aside Bonds US Bank Acquisition and rehab of a housing proj " 6,499,343.00 761,744.00 - - 117,229.00 - - 327,229.00 $ 444,458.00 27) 2001 Housing Set Aside Bonds US Bank Development of a senior housing proj * 12,136,937.00 1,357,592.00 - - 188,218.00 - - 588,217.00 $ 776,435.00 28) $ - 29) * Bonds with prinicpal due in August or September. Principal added to June and amount due in fiscal ear to ensure funds are available when required. $ - ( $ - I $ - Totals-This Page $ 1,315,257,070.00 Grandtotal-All Pages $ 39,834,542.00 _ $ 7,003,949.00 $ 1,680,199.00 $ 3,232,082.00 $ 1,680,199.00 $ 1,680,199.00 $ 10,733,940.00 $ 26,010,568.00 I $ 1,315,257,070.00 $ 39,834,542.00 $ 7,003,949.00 $ 1,680,199.00 $ 3,232,082.00 $ 1,680,199.00 $ 1,680,199.00 $ 10,733,940.00 $ 26,010,568.00 Updated EOPS -ROPS 1-31-12 1/26/2012 1 of 1
Name of Redevelopment Agency: West Covina Community Development Commission Project Area(s) Merged & Citywide Attachment 3 REVISED RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34167 and 34169 Project Name / Debt Obligation Payee Description Total Outstanding Debt or Obligation Total Due During Fiscal Year LMIH, Bond Proceeds, Reserve balances, Administrative cost allowance. Property tax trust fund, Other Payments by month Jan Feb March April May June Total 1999 Tax Allocation Bonds US Bank Fund capital projects in the Merged Area 8,897,866.00 278,200.00 Property tax trust fund 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 136,100.00 $ 141,600.00 2) 2002 Tax Allocation Bonds US Bank Repay outstanding 1993 bonds " 13,134,847.00 1,763,738.00 Property tax trust fund 217,736.00 777,736.00 $ 995,472.00 3) 1996 CFD Refunding Bonds US Bank Fund Fashion Plaza Improvements * 51,170,899.00 6,483,500.00 PUP, other 1,028,700.00 2,798,700.00 $ 3,827,400.00 4) 1988 Lease Rev Refunding Bnds Wells Fargo Bank Fund the Lakes Parking Project * 6,847,414.00 871,856.00 PUP, other 4,738.00 4,738.00 4,738.00 4,738.00 4,738.00 429,738.00 $ 453,428.00 5) BLD Debt Service City of West Covina Reimburse City for BLD Debt Service 33,716,425.00 1,103,000.00 Property tax trust fund 91,917.00 91,917.00 91,917.00 91,917.00 91,917.00 91,917.00 $ 551,502.00 6) SERAF 2010 Housing Loan Housing Successor Agy Repay SERAF to the housing fund 6,529,308.00 1,632,327.00 Property tax trust fund - - - - - 1,632,327.00 $ 1,632,327.00 7) SERAF 2011 Housing Loan Housing Successor Agy Repay SERAF to the housing fund 1,342,977.00 266,595.00 Property tax trust fund - - - - - 266,595.00 $ 266,595.00 8) DDA - The Lakes Various Bond admin & maint for park structure 1,800,000.00 210,000.00 Property tax trust fund 105,000.00 - - - - - $ 105,000.00 9) OPA - CFD Westfield et al CFD admin & Developer repayment 7,652,298.00 1,050,000.00 Property tax trust fund - - - - - 900,000.00 $ 900,000.00 10) SB2557 Admin County of Los Angeles Tax Collection Services 9,428,048.00 256,000.00 Property tax trust fund 21,333.00 21,333.00 21,333.00 21,333.00 21,333.00 21,333.00 $ 127,998.00 11) Housing Set Aside Low Mod Hsg Authority 20% Set Aside for low mod hsg 132,336,995.00 3,783,600.00 Property tax trust fund 315,300.00 315,300.00 315,300.00 315,300.00 315,300.00 315,300.00 $ 1,891,800.00 12) Nissan Sales Tax Guarantee Sage Nissan Sales Tax Contribution Agreement 800,000.00 - Property tax trust fund - - - - - - $ - 13) Passthrus Other taxing entities Passthrus per agreements and code 338,111,418.00 3,922,000.00 Property tax trust fund 326,833.00 326,833.00 326,833.00 326,833.00 326,833.00 326,833.00 $ 1,960,998.00 _14) Repay County Deferral County of Los Angeles Begin repayment 10,085,562.00 1,340,325.00 Property tax trust fund - - - - - 1,340,325.00 $ 1,340,325.00 15) Non personnel operation cost Various Operations for both project areas 75,979,376.00 2,470,889.00 Property tax trust fund 205,907.00 205,907.00 205,907.00 205,907.00 205,907.00 205,907.00 $ 1,235,442.00 16) Employee Costs Various employees Salaries and benefits for personnel 58,767,980.00 1,728,470.00 PTTF, AC Allowance 144,039.00 144,039.00 144,039.00 144,039.00 144,039.00 144,039.00 $ 864,234.00 17) Asset Protection Various Enforcement of obligations 5,000,000.00 1,800,000.00 Property tax trust fund 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 $ 900,000.00 18) CSS - CFD CSS Com Fac Dist CFD Assessment 4,803,381.00 73,370.00 Property tax trust fund 6,115.00 6,115.00 6,115.00 6,115.00 6,115.00 6,115.00 $ 36,690.00 19) City Note-Administration City of West Covina Repay City for admin & construction 19,789,504.00 1,483,600.00 Property tax trust fund 123,633.00 123,633.00 123,633.00 123,633.00 123,633.00 123,633.00 $ 741,798.00 20) City Note - CIP City of West Covina Repay City for capital projects 3,604,284.00 259,783.00 Property tax trust fund 21,649.00 21,649.00 21,649.00 21,649.00 21,649.00 21,649.00 $ 129,894.00 21) City Note Revolving City of West Covina Repay City for revolving credit 8,318,522.00 556,617.00 Property tax trust fund 46,385.00 46,385.00 46,385.00 46,385.00 46,385.00 46,385.00 $ 278,310.00 _22) Sales Tax Reimbursement City of West Covina Reimburse City for CFD Sales Tax 32,288,686.00 1,006,336.00 Property tax trust fund 83,862.00 83,862.00 83,862.00 83,862.00 83,862.00 83,862.00 $ 503,172.00 23) City Line Of Credit City of West Covina Line of Credit for Merged Area 5,375,000.00 5,375,000.00 Property tax trust fund 5,218,750.00 - - - - - $ 5,218,750.00 24) Cooperation Agreement Various 46 Projs (less golf crse) under coop agmt 415,840,000.00 - Property tax trust fund - - - - - - $ - 25) Golf Course Agreement Various Golf Course Implementation Agreement 45,000,000.00 - Property tax trust fund - - - - - - $ - 26) 1998 Housing Set Aside Bonds US Bank Acquisition and rehab of a housing proj * 6,499,343.00 761,744.00 Property tax trust fund - - 117,229.00 - - 327,229.00 $ 444,458.00 27) 2001 Housing Set Aside Bonds US Bank Development of a senior housing proj * 12,136,937.00 1,357,592.00 Property tax trust fund - - 188,218.00 - - 588,217.00 $ 776,435.00 28) $ - 29) * Bonds with principal due in August or September. Principal added to June and amount due in fiscal year to ensure funds are available when required. $ - 30) _ _ $ - $ - Totals-This Page Grand total - All Pages $ 1,315,257,070.00 $ 39,834,542.00k $ 6,866,561.00 $ 1,542,811.00 $ 3,094,694.00 $ 1,542,811.00 $ 1,542,811.00 $ 10,733,940.00 $ 25,323,628.00 $ 1,315,257,070.00 $ 39,834,542.00 $ 6,866,561.00 $ 1,542,811.00 $ 3,094,694.00 $ 1,542,811.00 $ 1,542,811.00 $ 10,733,940.00 L$ 25,323,628.00 Updated EOPS -ROPS 1-31-12 1/26/2012 ROPS 01-31-12 1 of 1