12/21/2021 - AGENDA ITEM 2 - APPROVAL AND TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE ("ROPS") FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023AGENDA ITEM NO. 2
WEST" ON
DATE: December 21, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
SUBJECT: APPROVAL AND TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE ("ROPS") FOR THE PERIOD
OF JULY 1, 2022 THROUGH JUNE 30, 2023 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.2021-117 — 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, 2022 THROUGH JUNE 30, 2023
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,
2022 through June 30, 2023. 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, 2022. 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
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,
2022 through June 30, 2023. 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 22-23 is $19,765,514 and includes many of the same items that have been previously
approved by DOE
LEGAL REVIEW:
Successor Agency Counsel has reviewed and approved the resolution as to form.
Prepared by: Robbeyn Bird, Finance Director
Additional Paulina Morales, Assistant City 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
Attachment No. 1 - Successor Agency Resolution No. 2021-117
Exhibit A - Recognized Obligation Payment Schedule (ROPS 22-23)
Exhibit B - Successor Agency Administrative Budget for July 1, 2022 through June 30, 2023
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL
GOALS &
OBJECTIVES:
ATTACHMENT NO.1
RESOLUTION NO.2021-117
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, 2022 THROUGH JUNE 30, 2023
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; and
WHEREAS, Health and Safety Code section 34177(o)(1) requires that the ROPS for the
period from July 1, 2022 to June 30, 2023 be submitted after oversight board approval to the State
of California Department of Finance and the Los Angeles County Auditor -Controller by February
1, 2022; 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 ("ROPS") 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, 2022 — June 30, 2023 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 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 full force.
APPROVED AND ADOPTED at a regularly scheduled meeting held on this 21st day of
December, 2021.
APPROVED AS TO FORM:
Thomas P. Duarte
Counsel
Dario Castellanos
Chair
ATTEST:
Lisa Sherrick
Secretary
I, LISA SHERRICK, Secretary of the Successor Agency to the former West Covina
Redevelopment Agency, do hereby certify that the foregoing Resolution No. 2021-117 was duly
adopted by the West Covina City Council, acting as Successor Agency to the former West Covina
Redevelopment Agency, at a regular meeting thereof held on the 21 st day of December, 2021, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Secretary
EXHIBIT A
Recognized Obligation Payment Schedule (ROPS 22-23) - Summary
Filed for the July 1, 2022 through June 30, 2023 Period
Successor Agency: West Covina
County: Los Angeles
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
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.
22-23A Total
22-23B Total
ROPS 22-23
(July -
(January -
Total
December)
June)
$ 5,052,150
$
$ 5,052,150
5,052,150
5,052,150
$ 11,978,479
$ 2,734,885
$ 14,713,364
11,826,479
2,578,685
14,405,164
152,000
156,200
308,200
$ 17,030,629
$ 2,734,885
$ 19,765,514
Name
Title
/s/
Signature
Date
m
«,
A
n
c
»
e3
14
14
W
EF
O
N
O
pN
C
a
ID
N
m
a
f
L C
N
ry
9
c
OLL
N
LL
m
O
m m
�
mm
L
me
a
O
Ngg
O
lm0
Om
N
r
m
N
LL
Q�
b
O
a
Ek
O
c
LL
<
N
m
yM
N
O
m
oji
m
<
�
u
a
o
da
N
2
N
9
C
O
y
u
w
N
N
mm
o
�
E2
ma
O
fA
f/S
IA
Y
nF
N
Yy]
N
0
OO
m
r
m
N
O
m
m
K17
r
a
w
en
ym
my
n
y
N
Fq
Z
Z
Z
Y
Z
Z
Z
Z
Z
}
Y
Z
Z
Z
m
ryN
N
C
1�
A
00
El
m
E
a
m
aLi
cEi'
L.
21
L.
L.
2'
2�
'U
w'
W'w
U'
a
❑
Tg
mr
$�@
=
E
�;,E
mL
m
�$'
rn�$
°m
U,y-i
U
Em't
$.$a
n$
nGE
m
"Eo
'Eam
n iK
E m
e.�i$
m$t
c
Om
¢R
z8
rc2.2
&
❑
'_
m
W
2
MH
$.
mm`oran
�Q'
amy
m'¢w
SAE
a
w a
a m%
m E
P U
U
D =$
m
m$ a
m
`m
m
LL
oy $
�E'c
�$c
n
m
5
mm
c m
8 c
um rS
`m
`o $
0
a
y,m>
w.L—�2
'w
m�
$$'u
'o$°i
QQ.q
Dm�
$'u
mE
U�U
xmQ
2w,
LLLL
Umm
UJQ�
m>
UYi0
mQc2m
2
2
03:o
U
m.
m
O
O
O
O
O
O
O
O
w
E m m
m m
C
C
C
C
N
O
O
O
O
O
€❑
s
s
s
o
a
a
a
o
0
z�
p
Nm❑
Oiy
p
f�10
��rmp
m
m
py
a�
aN
N
a'
G�
yw
W
ag
a$
,o
as
as
as
o
aW
a
n
E
LLLL
¢LL¢
C
O
E
CE
W
w
a0to
a0�
m
cC(J
o
U
Eo0
a
aE@
4a
ac
a
E
2m
U"�
U
.o
pu
w
o.o
ac
m
$
O
mm'Q®w
y
y
OU
OUo
m
HJ
Q
UJN
❑Q
J
J
UJN
U
m
=
R
m
T)
N
a
Jm
�i J
O.G
O
m
m C
LL C
m
$
y�j
rEm
c
��
mm
e=
O)
'LE—
N
qi'Y
ZE
Z
2
0p> c
w
Q,Y
OS
❑Nt
,Z,E
y,
NKm
vw12
fw92
USa
Uopmmo
NQmm
U9Q
U
Q
EO'
yit
m
m
r
m
Q
O
N
m
m
N
N
I N
N
>
E
�rc
^
LL
O
h
O
C
m
m
Ho
v
c
O ii
N
Q
m N
�
Km
N
C
° m
me
a
Q
6S
p
N
M
M
^
tl
fA
N
bS
O
O
N
C
Q
N R
{Ny
N
n
r
N»
N
GFLL
�
O
1�
N
tYr1I
b
�
m
P
�
h
N
L C
s IL
N
O
N
N
�
LL
yj
Q
$
mzm
m m
a'm
J
w
O�
m e
a
N
O
r
lh
fA
fA
IA
O
O
O
O
Y
Q~
N
I�
�
O
q
W
N
r
W
r
r
M
N
m
VVVy�
ap
z
z
z
z
z
z
z
>
z
}
z
z
K
W
O
V
y
O
O
S
N
N
n
O
$
o
O
N
N
r
N
M
DH.6
0gr
W
N
O
0
O
N
O
W
@ U
U 0
c
cm
U
Q
n
m
n
zl
U c
�O
m
v $. °'
.Q
u`a $
w
o
w
c m o
Ww
E a a$
_
°�.@
m
w E
a
n�
EU
ii i
nOiT
cm�%2wrn
ma
rm W
$a ncc
amPN
$$O
o
$
m
K@
u '�
K2r
c�q
idE
LL'a_
LLm�
Ua
o e
m¢a
cd3
aco.o
o.a
m-'3a
a@0
oOPmm
U¢E
o.nol
�EwP
z ati
UJ��ik
a@.Q cm
�U
UyiU
UTiU
J
y
Jm
Nz
0
y�
N
rypN
N
N
COJ
pN
lh
N
O
O
W
O
of
O
l0
N
O
W
E $1
N
N
N
N
N
O
O
G
(OV
O
O
a
aF
O
O
O
O
O
O
O
O
O
O
O
O
w O
d$30
Qy�
m
A$i
cN
oN
3$
ro
0
T
o
"
`u
(i
0
O
c O
0
�.m
❑
9N
W
TD
m
0
'm
of
Yam
pEn
bm0
90
Z
E
nn
Y}�N
IbmN
N
m
o
oO
0
Oo
=
am
K
ao
a�U
aiU
E
E
m
_0
Y
m
z
dp
°s�
❑w
z
m a
zO
=E
`8i
¢
$�
2 a$
�2
�mE
°@
a
y
mm�e
m E�
S
Ua'
N(L
TKm
O
Jam
ttm
UN
mU¢
d
N�Sn
RaQU
a
b
N
N
m
1�m
Q
N
Ip
N
N
(00
0
0_
w
M
N
>
F
4
O
LL
O
O
d
f
�
c
Sd
N
LL
m N
N
O
m NU
m
� m
m
O�y
m2
2
a
Nf
N
N
a
LL
E�
�C
LL
u
.
m
�
V
N
C
V IL
q
LL
m
¢
J
ymq
C
O 00
m Q
2
a
e
w
N
�
mZ
Z
Z
Z
T
Y
Y
Z
Z
Z
Z
K
m
m
-
0 9 rn
m
c
ri
00
m
a
a
a
a
m
m
x
a¢
2'
L.
L.
m
m
a2i
0
0=
E
Evc
c
Eac
c
Eaamg'
c
o
-° ym
.0
n
w
$
m 8
m c
Q
E n
g'S r
o.
PE
E m
Ema
c o 0 m
E
c
m
E>m
Ev>m
Exam
ePo
v�i9bYn
na
_
a'J
'mom¢2myymm2
120
c°'NO°m.o
BE^'m of
mmNmm°m
o
P3 d
mm
Kom
o: `owcm
�x
aEGS'Sa
a¢
��S'S mS a'm
- wr3mrc
m'o$
=�¢m
mm
a'mo'mo
`o
'o ma
o
oJ
m
m
m
m
m
4E m .p
N
N
N
N
O
O
O
N
O
N
O
vo
d%p
�V
�V
�C
eN
pl°
Ot'
Qa�
Op
wpm
O'!
Or
O N
O N
O N
O N
O N
O N
O N
O N
O N
O N
O N
F
rr
N
b
c O M
C
U
°
vy
my
ma
aU
a
U
cv
oaGirn
�,m
m
m?..
m
z
E
i0 E
E
w
..
�.
H..
a
cE
o:
`mE
xE
mE Y3
a�
cE
y
v�
E@g
Ya
a
6
Uow
E
m
v
m
r
>
!
!
K
\
/\
!7
[
#
«
0I
`|§0,
0
.
!/
w
a
}
(
O�
)
-
;2
&
\\
!!)®
!
�-
#
!£
,
ti
E
)
\
\
\
`
\
\
(
°
0
§ #
A
G
!!«
!®
§
!
!
7
!
West Covina
Recognized Obligation Payment Schedule (ROPS 22-23) - Notes
July 1, 2022 through June 30, 2023
Item # Notes/Comments
74
.................................. ................................................. ............................ ....... - -- - ---------------------------- . ....... . .......... . ............................ .......................... .. ... . . ... .................... . ........
76
........................ .... ...... ............................................................................................... . . . . . . . . .............. ... . . . . . ........................................................ . . ..........................................................................................................................
77
EXHIBIT B
SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
July 1, 2022 to June 30, 2023
Salaries & Benefits $
Maintenance & Operations
Consultants
Audit Fees
Legal Fees
Overhead
Subtotal
Annual Amount
73,700 $
84,000
4,200
40,000
106,300
234,500
Jul - Dee 2022 Jan - Jun 2023
36,850 $ 36,850
42,000 42,000
- 4,200
20,000 20,000
53,150 53,150
115,150 119,350
Total Budget $ 308,200 $ 152,000 $ 156,200