01-19-2021 - AGENDA ITEM 16 CONSIDERATION OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.7(O)(1), FOR TAGENDA ITEM NO. 16
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: January 19, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED
OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34179.7(0)(1), FOR THE PERIOD OF JULY 1, 2021 THROUGH JUNE 30, 2022
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.2021-02 — 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, 2021 THROUGH JUNE 30, 2022
BACKGROUND:
In accordance with Health and Safety Code Section 34177(o)(1), the Successor Agency is required to file a
Recognized Obligation Payment Schedule ("ROPS") annually 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 borrowed from the Housing Fund to fund property tax shifts mandated by the State,
costs of litigation to protect assets of the former Redevelopment Agency, repayment of loans to the City, and
administrative costs of the Successor Agency to wind -down the affairs of the former 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 the ROPS if they are to be funded by distributions of future tax
increment dollars. These items are not debt obligations of the City of West Covina.
DISCUSSION:
The ROPS schedule (Attachment No. 1— Exhibit A) lists all amounts that will be paid for the period of July 1,
2021 through June 30, 2022. Once the ROPS is approved by the Successor Agency and Oversight Board, it
then must be forwarded to the State Department of Finance (DOF) by February 1, 2021. DOF holds final
approval authority of the items listed on the ROPS and directs the Los Angeles County Auditor -Controller to
distribute tax increment funds to the Successor Agency. Many of the obligations listed on the ROPS are
West Covina
Recognized Obligation Payment Schedule (ROPS 21-22) - Report of Cash Balances
July 1, 2018 through June 30, 2019
(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 I G
H
Fund Sources
Bond Proceeds
Reserve Balance
Other Funds
RPTTF
Prior ROPS
ROPS 18-19 Cash Balances
RPTTF and
Comments
(07/01/18 - 06/30/19)
Bonds issued
Bonds issued
Reserve
Rent, grants,
Non-Admin
before
on o r before
on or after
Balances retained
interest, etc.
and Admin
12
01/01/11
for future
period(s)
1
Beginning Available Cash Balance (Actual 07/01118)
2,207,738
8,286,482
RPTTF amount should exclude "A" period distribution
amount.
2
Revenue/Income (Actual 06/30/19)
2,013,869
8,972,197
RPTTF amount should tie to the ROPS 18-19 total
distribution from the County Auditor -Controller
3
Expenditures for ROPS 18-19 Enforceable Obligations
2,207,738
9,966,905
(Actual 06/30/19)
4
Retention of Available Cash Balance (Actual 06/30/19)
2,013,869
3,763,632
RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5
ROPS 18-19 RPTTF Prior Period Adjustment
263,731
RPTTF amount should tie to the Agency's ROPS 18-19 PPA
No entry required
form submitted to the CAC
6
Ending Actual Available Cash Balance (06/30/19)
$-
$-
$-
$-
$3,264,411
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
EXIIIBIT B
SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
July 1, 2021 to June 30, 2022
Salaries & Benefits $
Maintenance & Operations
Consultants
Legal Fees
Overhead
Annual Amount Jul - Dec 2021 Jan - Jun 2022
73,700 $ 36,850 $ 36,850
30,000 15,000 15,000
40,000 20,000 20,000
106,300 53,150 53,150
Subtotal 176,300 88,150 88,150
Total Budget $ 250,000 $ 125,000 $ 125,000
EASUCCESSOR AGENMROPS\ROPS 21-22 (July2021 -June 2022)\Admin Budget\Administrative Budget ROPS 21-22
estimates, i.e. variable rate debt service payments, litigation, etc
The Successor Agency is also required to adopt an administrative budget for each annual period. Attachment
No. 1— Exhibit B to this report is the administrative budget for the Successor Agency for the period of July 1,
2021 through June 30, 2022. This budget is to be funded by the administrative allowance, which is 3% of the
enforceable obligations, after loan payments, or $250,000 annually; whichever is greater. The City will absorb
any administrative costs above this administrative allowance. These administrative costs can also be found in
the ROPS (Attachment No. 1 — Exhibit A) line item number 12.
The total amount of funding requested for enforceable obligations from the Redevelopment Property Tax Trust
Fund (RPTTF) on ROPS 21-22 is $23,198,353 and includes many of the same items that have been previously
approved by DOE
LEGAL REVIEW:
The Successor Agency Counsel has reviewed the resolution and approved it as to form.
Prepared by: Robbeyn Bird, Finance Director
Additional Approval: Mark Persico, Assistant City Manager
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
Attachment No. 1 - Resolution No. 2021-02
Exhibit A - ROPS 21-22
Exhibit B - Successor Agency Administrative Budget for July 1, 2021 through June 30, 2022
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
Enhance City Facilities and Infrastructure
ATTACHMENT NO.1
RESOLUTION NO.2021-02
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, 2021 THROUGH JUNE 30, 2022
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, has five consolidated oversight boards each encompassing the five
supervisorial districts;
WHEREAS, pursuant to Health and Safety Code section 34177 (o)(1), requires that the
ROPS for the period from July 1, 2021 to June 30, 2022, 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, 2021; 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, 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 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 3. The Administrative Budget for the Successor Agency for the annual period
of July 1, 2021 — June 30, 2022, 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 Calfornia 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 furtherance of approval of the Recognized Obligation Payment Schedule and
Administrative Budgets.
SECTION 5. The Secretary shall certify as to the passage and adoption of this Resolution,
and it shall thereupon take effect and be in fA force.
APPROVED AND ADOPTED at a regularly scheduled meeting held on this 19th day of
January, 2021.
Letty Lopez-Viado
Chair
APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
Counsel Secretary
EXHIBIT A
Recognized Obligation Payment Schedule (ROPS 21-22) - Summary
Filed for the July 1, 2021 through June 30, 2022 Period
Successor Agency: West Covina
County: Los Angeles
Current Period Requested Funding for Enforceable 21-22A Total 21-22B Total ROPS 21-22
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.
$ 17,648,724 $ 5,549,629 $ 23,198,353
17,648,724 5,549,629 23,198,353
$ 17,648,724 $ 5,549,629 $ 23,198,353
Name Title
/s/
Signature Date
West Covina
Recognized Obligation Payment Schedule (ROPS 21-22) - ROPS Detail
July 1, 2021 through June 30, 2022
A
B
C
D
E
F
G
H
I
J
K
L M N 1 O P
Q
R S I T U V
W
ROPS 21-22A (Jul - Dec)
ROPS 21-22B (Jan -Jun)
Item
Agreement
Agreement
Project
Total
ROPS
21-
21-2
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
21-22 Total
Totatall
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
$76,787,941
$23,198,353
$-
$-
$-
$17,648,724
$-
$17,648,724
$-
$-
$-
$5,549,629
$-
$5,549,629
3
2006 Lease
Bond
09/19/
06/01/2036
City of
Reimburse City
Merg/
22,404,351
N
$1,389,328
402,164
$402,164
987,164
$987,164
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
607,326
N
$536,654
268,327
$268,327
268,327
$268,327
Housing Loan
2010
Successor
to the housing
Agency
fund
7
SERAF 2011
SERAF/ERAF
01/18/
08/01/2022
Housing
Repay SERAF
Merged
140,547
N
$124,192
62,096
$62,096
62,096
$62,096
Housing Loan
2011
Successor
to the housing
Agency
fund
8
DDA - The
OPA/DDA/
06/26/
06/30/2038
Stillwater
Maintenance
Merged
350,000
N
$350,000
-
$-
350,000
$350,000
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
Scrub 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
250,000
N
$250,000
125,000
$125,000
125,000
$125,000
Administrative
2014
Various
for both project
Budget
areas
13
City
City/County
02/15/
06/30/2018
City of
Reimbursement
Merged
-
N$-
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 -
I 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
I admin &
A
B
C
D
E
F
G
H
I
J
K
L I M I N 1 O P
Q
R I S T I U V
W
ROPS 21-22A (Jul - Dec)
ROPS 21-22B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
21-22A
21-22B
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
21-22 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
28/11), Other
Covina
construction
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
611,890
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
9,523,100
N
$4,470,950
4,323,800
$4,323,800
147,150
$147,150
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
33,400
N
$33,400
14,300
$14,300
19,100
$19,100
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
48,000
N
$48,000
24,000
$24,000
24,000
$24,000
Services ROPS
Services
2013
and Sons
ROPS and
property
management
plan
55
BKK Landfill
Remediation
04/17/
06/30/2018
Various
Landfill closure
Merged
N$-
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
A
B
C
D
E
F
G
H
I
J
K
L I M I N 1 O P
Q
R I S T I U V
W
ROPS 21-22A (Jul - Dec)
ROPS 21-22B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
21-22A
21-22B
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
21-22 Total
Total
Total
Bond
Reserve
Other
RPTTF
Admin
Bond
Reserve
Other
RPTTF
Admin
Date
Date
Obligation
Proceeds
Balance
Funds
RPTTF
Proceeds
Balance
Funds
RPTTF
67
Project
Project
09/27/
06/30/2018
Various
Project specific
Merged
30,000
N
$30,000
15,000
$15,000
15,000
$15,000
Administrative
Management
2011
related costs
Costs
Costs
for
environmental
land use
consulting for
BKK Landfill
73
Loan
Unfunded
09/16/
06/30/2018
City of
Reimbursement
Merged
N$-
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
820,185
N
$820,185
820,185
$820,185
$-
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
A
B
C
D
E
F
G
H
I
J
K
L I M I N 1 O P
Q
R I S T I U V
W
ROPS 21-22A (Jul - Dec)
ROPS 21-22B (Jan - Jun)
Item
Agreement
Agreement
Project
Total
ROPS
21-22A
21-22B
Fund Sources
Fund Sources
#
Project Name
Obligation Type
Execution
Termination
Payee
Description
Area
Outstanding
Retired
21-22 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
119
Interim
Fees
07/01/
06/30/2018
Various
Interim
3,000
N
$3,000
$-
3,000
$3,000
Arbitrage
2015
Arbitrage
Report
Report
134
BKK License
Property
01/01/
06/30/2018
Various
Retention
-
N$-
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 #
9,430,391
N
$1,654,819
$-
1,654,819
$1,654,819
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
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.
145
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
146
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