01-21-2020 - AGENDA ITEM 06 CONSIDERATION OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE “ROPS” PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.7(O)(1)11/16/2020
Print Staff Report
AGENDA ITEM NO. 6
DATE: January 21, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
SUBJECT: CONSIDERATION OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED
OBLIGATION PAYMENT SCHEDULE "ROPS" PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34179.7(0)(1), FOR THE PERIOD OF JULY 1, 2020
THROUGH JUNE 30, 2021 FOR THE SUCCESSOR AGENCY TO THE FORMER
WEST COVINA REDEVELOPMENT AGENCY
RECOMMENDATION:
It is recommended that the City Council, acting as the Successor Agency to the former West Covina
Redevelopment Agency, adopt the following resolution:
RESOLUTION NO.2020-06 — A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
WEST COVINA REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE
TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE "ROPS" FOR THE PERIOD OF JULY 1, 2020 THROUGH JUNE 30, 2021
BACKGROUND:
On January 7, 2020 the City Council, acting as the Successor Agency, adopted Resolution 2020-01 approving
the Successor Agency's Recognized Obligation Payment Schedule (ROPS) for fiscal year July 1, 2020 to June
30, 2021.
DISCUSSION:
The attached resolution adds a line item to the previously approved ROPS 20-21. The attached ROPS 20-21
includes attorney fees for litigation regarding enforcement of contractual obligations and rights for a former
Redevelopment Agency agreement (line item #144). This item is being added in the event litigation is
necessary. Hopefully litigation can be avoided, but this item is being added as a precaution.
LEGAL REVIEW:
The Successor Agency Counsel has reviewed and approved this staff report, resolution and the Recognized
Obligation Payment Schedule.
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West Covina
Recognized Obligation Payment Schedule (ROPS 20-21) - Report of Cash Balances
July 1, 2017 through June 30, 2018
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other
funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A
B
C D E F G
H
ROPS 17-18 Cash Balances
Fund Sources
Comments
(07/01/17 - 06/30/18)
Bond Proceeds
Reserve Balance
Other Funds
RPTTF
Bonds issued
Bonds issued
Prior ROPS
Rent, grants,
Non-Admin
on or before
on or after
RPTTF and
interest, etc.
and Admin
12/31/10
01/01/11
Reserve
Balances retained
for future
period(s)
1
Beginning Available Cash Balance (Actual 07/01/17)
9,001,187
RPTTF amount should exclude "A" period distribution
amount.
2
Revenue/Income (Actual 06/30/18)
5,124,949
RPTTF amount should tie to the ROPS 17-18 total
distribution from the County Auditor -Controller
3
Expenditures for ROPS 17-18 Enforceable Obligations
10,408,857
(Actual 06/30/18)
4
Retention of Available Cash Balance (Actual 06/30/18)
1,976,757
RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5
ROPS 17-18 RPTTF Prior Period Adjustment
698,566
RPTTF amount should tie to the Agency's ROPS 17-18 PPA
No entry required
form submitted to the CAC
6
Ending Actual Available Cash Balance (06/30/18)
$-
$-
$-
$-
$1,041,956
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
EXHIBIT B
SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
July 1, 2020 to June 30, 2021
Annual Amount July - Dec 2020 Jan - June 2021
Salaries & Benefits $ 190,000 $ 95,000 $ 95,000
Maintenance & Operations
Consultants
37,100
21,050
16,050
Legal Fees
40,000
20,000
20,000
Phone
2,000
1,000
1,000
Cell Phone
1,000
500
500
Supplies
7,300
3,650
3,650
Meetings
5,000
2,500
2,500
Overhead
52,600
26,300
26,300
Liability Insurance
5,000
2,500
2,500
Subtotal
150,000
77,500
72,500
Total Budget $
340,000 $
172,500 $
167,500
11/16/2020
Print Staff Report
Prepared by: Gerardo Rojas, Project Coordinator
Additional Paulina Morales, Economic Development & Housing Manager
Approval:
Fiscal Impact
FISCAL IMPACT:
The 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 dissolved. The obligations listed on this schedule will receive property tax
allocations distributed by the County of Los Angeles as their funding source.
If the Successor Agency's administrative costs exceed the administrative allowance, the excess expenditures
will be absorbed by the City.
Attachments
Resolution No. 2020-06
Recognized Obligation Payment Schedule (ROPS 2020-2021)
Successor Agency Administrative Budget for July 1, 2020 through June 30, 2021
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Engage in Proactive Economic Development
GOALS &
OBJECTIVES:
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ATTACHMENT NO.1
RESOLUTION NO.2020-06
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
WEST COVINA REDEVELOPMENT AGENCY APPROVING AND
AUTHORIZING THE TRANSMITTAL OF AN ADMINISTRATIVE
BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE
"BOPS" FOR THE PERIOD OF JULY 1, 2020 THROUGH JUNE 30, 2021
WHEREAS, pursuant to ABX 1 26, enacted on June 28, 2011, and as subsequently
amended by AB 1484, SB 341, and SB 107 (`Dissolution Act'), the Redevelopment Agency to
the City of West Covina was dissolved as of February 1, 2012, and the City of West Covina elected
to serve as the Successor Agency to the former Redevelopment Agency to the City of West Covina;
and
WHEREAS, pursuant to Health and Safety Code Section 34179(q), commencing on and
after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created
by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five
supervisorial districts;
WHEREAS, pursuant to Health and Safety Code Section 34179.7 (o) (1), requires that the
ROPS for the period from July 1, 2020 to June 30, 2021, shall be submitted after oversight board
approval to the State of California Department of Finance and the Los Angeles County Auditor -
Controller by February 1, 2020; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the former
West Covina Redevelopment Agency, reserves the right to appeal any determination of the State
of California Department of Finance or other entity regarding the propriety of this resolution as
well as any future determinations; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the former
West Covina Redevelopment Agency, intends to comply with the state -mandated obligations
established hereunder; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the former
West Covina Redevelopment Agency, adopted Resolution 2020-01 approving ROPS 20-21 on
January 7, 2020. This ROPS 20-21 has not been submitted to the Oversight Board nor the
Department of Finance. This Resolution will supersede the previously adopted Resolution 2020-
01 and ROPS 20-21 with the additional line item #144.
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 former 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 Recognized Obligation Payment Schedule "BOPS" attached hereto as
Exhibit "A" is approved and the Executive Director is authorized to submit the ROPS to the
Oversight Board for approval and transmit the saw to the Los Angeles County Auditor -
Controller, the California State Controller and the State of California 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 Administrative Budget for the Successor Agency for the annual period
of July 1, 2020 — June 30, 2021, 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
California State Controller and the State of California Department of Finance in accordance with
Health and Safety Code Section 34177 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 Recognized Obligation Payment Schedule on the City's website, and any other reasonable
acts in fintherance of approval of the Recognized Obligation Payment Schedule and
Administrative Budgets.
SECTION 5. The Secretary shall certdy as to the passage and adoption of this Resolution,
and it shall thereupon take effect and be in full force.
APPROVED AND ADOPTED at a regularly scheduled meeting held on this 211t day of
January, 2020.
Tony Wu
Mayor
APPROVED AS TO FORM: ATTEST:
Thomas Duarte Lisa Sherrick
City Attorney Assistant City Clerk
EXHIBIT A
Recognized Obligation Payment Schedule (ROPS 20-21) - Summary
Filed for the July 1, 2020 through June 30, 2021 Period
Successor Agency: West Covina
County: Los Angeles
Current Period Requested Funding for Enforceable 20-21A Total 20-21 B Total ROPS 20-21
Obligations (ROPS Detail) December) (January
Total
A Enforceable Obligations Funded as Follows (B+C+D)
B Bond Proceeds
C Reserve Balance
D Other Funds
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G
F 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.
$ 19,585,527 $ 5,520,405 $ 25,105,932
19,415,527 5,350,405 24,765,932
170,000 170,000 340,000
$ 19,585,527 $ 5,520,405 $ 25,105,932
Name Title
/s/
Signature Date
West Covina
Recognized Obligation Payment Schedule (ROPS 20-21) - ROPS Detail
July 1, 2020 through June 30, 2021
A
B
C
D
E
F
G
H
I
J
K
L I M I N 1 O P
Q
R I S I T I U V
W
ROPS 20-21A (Jul - Dec)
ROPS 20-21 B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
20-21A
20-21
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
20-21 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
$95,860,636
$25,105,932
$-
$-
$-
$19,415,527
$170,000
$19,585,527
$-
$-
$5,350,405
$170,000
$5,520,405
3
2006 Lease
Bond
09/19/
06/01/2036
City of
Reimburse City
Merg/
23,750,341
N
$1,345,990
415,495
-
$415,495
930,495
-
$930,495
Revenues
Reimbursement
2006
West
for BLD Debt
Citywide
Bonds
Agreements
Covina
Service
6
SERAF 2010
SERAF/ERAF
02/16/
08/01/2022
Housing
Repay SERAF
Merged
1,133,456
N
$526,130
263,065
$263,065
263,065
$263,065
Housing Loan
2010
Successor
to the housing
Agency
fund
7
SERAF 2011
SERAF/ERAF
01/18/
08/01/2022
Housing
Repay SERAF
Merged
262,303
N
$121,756
60,878
$60,878
60,878
$60,878
Housing Loan
2011
Successor
to the housing
Agency
fund
8
DDA - The
OPA/DDA/
06/26/
06/30/2038
Stillwater
Maintenance
Merged
173,000
N
$173,000
173,000
$173,000
-
$-
Lakes
Construction
1987
Investment
for parking
Group
structure
9
CFD Tax
OPA/DDA/
06/26/
09/01/2022
Fashion
Tax Increment
Merged
1,800,000
N
$1,800,000
-
$-
1,800,000
$1,800,000
Increment
Construction
1989
Plaza CFD
pledged to CFD
Pledge
10
CSS - CFD
Remediation
10/19/
10/19/2054
Coastal
CFD
Merged
80,000
N
$80,000
40,000
$40,000
40,000
$40,000
2004
Sage
Assessment
Scurb CFD
11
Repay County
Third -Party
06/19/
08/20/2021
County of
Repay Loan of
Merged
1,202,573
N
$1,202,573
1,202,573
-
$1,202,573
-
$-
Loan
Loans
1990
Los
Deferred Tax
Angeles
Increment
12
SA
Admin Costs
01/01/
06/30/2018
SA staff,
Administration
Merged
340,000
N
$340,000
-
170,000
$170,000
170,000
$170,000
Administrative
2014
Various
for both project
Budget
areas
13
City
City/County
02/15/
06/30/2018
City of
Reimbursement
Merged
-
N$-
Cooperative
Loan (Prior 06/
2011
West
of advanced
Agreement
28/11),Other
Covina
SA expenses
19
AB 1484
Dissolution
09/10/
06/30/2018
Rogers,
AB 1484
Merged
N$-
Auditing Fees
Audits
2012
Anderson,
Auditing Fees
Malody &
Scott, LLP
20
Oversight
Legal
10/04/
06/30/2018
Harper&
Oversight
Merged
N$-
Board Legal
2012
Burns
Board Legal
Services
Services
21
Successor
Legal
06/30/
06/30/2018
Jones &
Successor
Merged
N$-
Agency Legal
2016
Mayer
Agency Legal
Services
Services
23
City Note -
City/County
08/09/
06/30/2025
City of
Repay City for
Merged
7,281,414
N
$728,142
728,142
$728,142
$-
Administration
Loan (Prior 06/
1971
West
admin &
28/11), Other
Covina
construction
A
B
C
D
E
F
G
H
I
J
K
L I M I N O P
Q
R S I T I U V
W
ROPS 20-21A (Jul - Dec)
ROPS 20-21 B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
20-21A
20-21B
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
20-21 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
24
City Note - CIP
City/County
02/28/
06/30/2025
City of
Repay City for
Merged
7,281,414
N
$728,142
728,142
$728,142
$-
Loan (Prior 06/
1972
West
capital projects
28/11), Other
Covina
25
City Note
City/County
12/16/
06/30/2025
City of
Repay City for
Merged
7,281,414
N
$728,142
728,142
$728,142
$-
Revolving
Loan (Prior 06/
1985
West
revolving credit
28/11), Other
Covina
26
Sales Tax
Bond
07/25/
06/30/2025
City of
Reimburse City
Merged
7,050,992
N
$611,890
611,890
$611,890
$-
Reimbursement
Reimbursement
2005
West
for CFD Sales
Agreements
Covina
Tax
28
1996 CFD
Bonds Issued
07/01/
09/01/2022
US Bank
Fund Fashion
Merged
13,907,750
N
$4,384,650
4,115,850
$4,115,850
268,800
$268,800
Refunding
On or Before
1996
Plaza
Bonds
12/31/10
Improvements
30
OPA - CFD
OPA/DDA/
06/26/
09/01/2022
Starwood
CFD admin and
Merged
450,000
N
$450,000
450,000
$450,000
-
$-
Construction
1989
developer
repayment
45
1998 - 2006
Fees
04/01/
09/01/2030
US Bank/
Bond Fiscal
Merged
28,200
N
$28,200
20,200
$20,200
8,000
$8,000
Bonds
1998
BNY
Agent & Liquity
Prov Fees
50
Unfunded
Unfunded
07/01/
06/30/2026
CalPERS
Payment for
Merged
1,073,575
N
$1,073,575
1,073,575
$1,073,575
-
$-
Pension
Liabilities
1966
unfunded
Liabilities
pension
obligations
51
Retirement
Unfunded
09/19/
06/30/2034
Former
Payment for
Merged
1,117,731
N
$1,117,731
1,117,731
$1,117,731
$-
Benefits
Liabilities
2001
employees
retirement
obligations -
OPEB
54
Contractual
Professional
03/06/
06/30/2018
Gonsalves
Consultant for
Merged
30,000
N
$30,000
15,000
$15,000
15,000
$15,000
Services ROPS
Services
2013
and Sons
ROPS and
property
management
plan
55
BKK Landfill
Remediation
04/17/
06/30/2018
Various
Landfill closure
Merged
N$-
Closure
2001
mitigation to
Agreements
approved
recreation use
57
Public Notices
Property
07/01/
06/30/2018
SGV
Notices of
Merged
N$-
Dispositions
2016
Newspaper
Proposed
Property
Transfer
60
Special
Project
01/01/
06/30/2018
City of
Citywide
Merged
12,000
N
$12,000
6,000
$6,000
6,000
$6,000
Assessments
Management
2014
West
Lighting &
on RDA -owned
Costs
Covina
Landscape
parcels
Maint District
#2
67
Project
Project
09/27/
06/30/2018
Various
Project specific
Merged
32,000
N
$32,000
16,000
-
$16,000
16,000
$16,000
Administrative
Management
2011
related costs
A
B
C
D
E
F
G
H
I
J
K
L I M I N O P
Q
R S I T I U V
W
ROPS 20-21A (Jul - Dec)
ROPS 20-21 B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
20-21A
20-21B
Fund Sources
Fund Sources
#
project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
20-21 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
Costs
Costs
for
environmental
land use
consulting for
BKK Landfill
73
Loan
Unfunded
09/16/
06/30/2018
City of
Reimbursement
Merged
N$-
Agreement
Liabilities
2014
West
of advanced
Covina
SA expenses
74
Cooperative
Unfunded
09/16/
06/30/2018
City of
Reimbursement
Merged
N$-
Agreement
Liabilities
2014
West
of advanced
Covina
SA expenses
76
Loan
Unfunded
09/16/
06/30/2018
City of
Reimbursement
Merged
1,226,433
N
$1,226,433
1,226,433
$1,226,433
$-
Agreement
Liabilities
2014
West
of advanced
Covina
SA expenses
(legal
expenses)
77
Housing
Housing Entity
07/01/
06/30/2018
Housing
AB 471 -
Merged
-
N
$-
-
$-
$-
Successor
Admin Cost
2015
Successor
Housing Admin
Admin
Agency
89
Project
Project
01/01/
06/30/2018
City of
Project
Merged
35,947
N
$35,947
17,974
$17,974
17,973
$17,973
Administrative
Management
2016
West
management
Costs
Costs
Covina
costs related to
the dispostion
of BKK
Properties
91
ROPS
Admin Costs
01/01/
06/30/2018
Various
Preparation of
Merged
N$-
Preparation
2016
ROPS for SA
101
Loan
Unfunded
02/01/
06/30/2018
City of
Loan
Merged
N$-
Agreement
Liabilities
2012
West
Agreement for
Covina
the repayment
of ROPS
approved items
that exceeded
budgeted
amounts
106
Financing
City/County
05/02/
12/31/2021
City of
line of credit in
2,831,397
N
$2,742,187
2,742,187
$2,742,187
$-
Agreement
Loan (Prior 06/
2000
West
the amount of
28/11), Cash
Covina
$5.6 million .
exchange
The purpose
was to bridge
shortfalls in
RDA revenues.
117
Bond
Fees
07/01/
06/30/2018
Various
Bond
5,000
N
$5,000
$-
5,000
$5,000
Disclosure
2015
Disclosure
costs
119
Interim
Fees
07/01/
06/30/2018
Various
Interim
3,000
N
$3,000
$-
3,000
$3,000
Arbitrage
2015
Arbitrage
A
B
C
D
E
F
G
H
I
J
K
L I M I N O P
Q
R S I T I U V
W
ROPS 20-21A (Jul - Dec)
ROPS 20-21 B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
20-21A
20-21B
Fund Sources
Fund Sources
#
project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
20-21 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
Report
Report
134
BKK License
Property
01/01/
06/30/2018
Various
Retention
N$-
Agreement
Maintenance
2017
Basin
Emergency
Repairs
135
LRPMP
Property
07/01/
06/30/2018
Various
BKK Property
N$-
Disposition
Dispositions
2017
Costs
136
1999 Tax
Reserves
11/01/
11/01/2029
US Bank
Fund capital
N$-
Allocation
1999
projects in
Bonds
Merged Area
140
2017 Tax
Refunding
02/07/
09/01/2030
US Bank
Refund items #
13,782,446
N
$1,891,194
$-
1,891,194
$1,891,194
Allocation
Bonds Issued
2017
1, 2, 4 & 5
Refunding
After 6/27/12
Bonds
141
2017 Tax
Fees
02/07/
09/01/2030
US Bank
Trustee Fees
2,000
N
$2,000
2,000
$2,000
$-
Allocation
2017
Refunding
Bonds
142
Repay County
Third -Party
06/19/
08/20/2021
County of
Repay Loan of
1,880,270
N
$1,880,270
1,880,270
$1,880,270
$-
Loan
Loans
1990
Los
Deferred Tax
Angeles
Increment -was
classified as
Other Funds
instead of
RPTTF on
FY18-19ROPS
143
Repay County
Third -Party
06/19/
08/20/2021
County of
Repay Loan of
1,755,980
N
$1,755,980
1,755,980
$1,755,980
$-
Loan
Loans
1990
Los
Deferred Tax
Angeles
Increment -was
classified as
Other Funds
instead of
RPTTF on
FY17-18ROPS
144
Anticipated/
Litigation
06/30/
06/30/2021
Jones &
Enforcement of
50,000
N
$50,000
25,000
-
$25,000
25,000
$25,000
Existing
2020
Mayer &
contractual
Litigation
Various
obligations and
rights under a
2006
agreement.