RDA RES 2011-015 RESOLUTION NO. RDA 2011-15
A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY APPROVING A PRELIMINARY DRAFT OF AN INITIAL
RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART
1.8 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE
AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH.
RECITALS:
A. The Rancho Palos Verdes Redevelopment Agency (the "Agency") is a
redevelopment agency in the City of Rancho Palos Verdes (the "City"), created pursuant
to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of
Division 24 of the California Health and Safety Code) (the "Redevelopment Law").
B. The City Council of the City (the "City Council") adopted Ordinance
No. 190, approving and adopting the redevelopment plan for Project Area No. 1, and
from time to time, the City Council has amended such redevelopment plan. The Agency
is and has been undertaking a program to redevelop the Project Area.
C. AB X1 26 was signed by the Governor of California on June 29, 2011,
making certain changes to the Redevelopment Law, including adding Part 1.8
(commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to
Division 24 of the California Health and Safety Code. Commencing upon the
effectiveness of AB X1 26, AB X1 26 suspends most redevelopment agency activities
and, among other things, prohibits redevelopment agencies from incurring indebtedness
or entering into or modifying contracts. Effective October 1, 2011, AB X1 26 dissolves
all existing redevelopment agencies and redevelopment agency components of
community development agencies, designates successor agencies to the former
redevelopment agencies, imposes numerous requirements on the successor agencies
and subjects successor agency actions to the review of oversight boards established
pursuant to the provisions of Part 1.85.
D. 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 an initial recognized
obligation payment schedule by no later than September 30, 2011, and provide it to the
successor agency, if a successor agency is established pursuant to Part 1.85. The
initial recognized obligation payment schedule must set forth the minimum payment
amounts and due dates of payments required by enforceable obligations for the six-
month period from January 1, 2012 through June 30, 2012.
E. AB X1 27 was signed by the Governor of California on June 29, 2011,
adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health
and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment
Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a
redevelopment agency will be authorized to continue to exist and carry out the
provisions of the Redevelopment Law upon the enactment, prior to the applicable
R6874-000111389904v1.doc
deadline established in Part 1.9 (with the earliest deadline being October 1, 2011), by
the city council of the city which includes that redevelopment agency of an ordinance to
comply with Part 1.9. Pursuant to Health and Safety Code Section 34192, if a city
participates in the Alternative Voluntary Redevelopment Program and complies with all
requirements and obligations contained in Part 1.9, the redevelopment agency in that
city will be exempt from Part 1.8 and Part 1.85.
F. The California Redevelopment Association and League of California Cities
have filed a lawsuit in the Supreme Court of California alleging that AB X1 26 and AB
X1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California
decided to hear the case and set a briefing schedule designed to allow the Supreme
Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme
Court also issued a stay order, which was subsequently modified on August 17, 2011.
Pursuant to the modified stay order, the Supreme Court granted a stay of all of AB X1
27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to
the determination of cities' fiscal year 2011-12 remittance amounts) and a partial stay
of AB X1 26. With respect to AB X1 26, Part 1.85 was stayed in its entirety, but Part 1.8
(including Health and Safety Code Section 34169) was not stayed. Accordingly, the
Agency desires to approve a preliminary draft of an initial recognized obligation
payment schedule.
NOW, THEREFORE, THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety Code
Section 34169.
Section 3. The Agency hereby approves the preliminary draft of the initial
recognized obligation payment schedule substantially in the form attached as Exhibit A
to this Resolution and incorporated herein by reference (the "ROPS"). The Executive
Director of the Agency, in consultation with the Agency's legal counsel, may modify the
ROPS as the Executive Director or the Agency's legal counsel deems necessary or
advisable.
Section 4. The Agency Secretary is hereby authorized and directed to transmit
a copy of the ROPS to the successor agency designated pursuant to Part 1.85 if a
successor agency has been designated.
Section 5. The Agency hereby designates the Director of Finance of the City
of Rancho Palos Verdes as the official to whom the Department of Finance may make
requests for review in connection with the ROPS and who shall provide the Department
of Finance with the telephone number and e-mail contact information for the purpose of
communicating with the Department of Finance.
Resolution No. RDA 2011-15
Page 2 of 3
R6874-0001\1389904v1.doc
Section 6. The officers and staff of the Agency are herby authorized and
directed, jointly and severally, to do any and all things which they may deem necessary
or advisable to effectuate this Resolution, and any such actions previously taken by
such officers are hereby ratified and confirmed.
Section 7. The approval of the ROPS is not intended and shall not constitute a
wavier by the Agency of any rights the Agency may have to challenge the legality of all
or any portion of AB X1 26 or AB X1 27 through administrative or judicial proceedings.
Section 8. This Resolution has been reviewed with respect to applicability of
the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines
(California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the
"Guidelines"), and the Agency's environmental guidelines. The Agency has determined
that this Resolution is not a "project" for purposes of CEQA, as that term is defined by
Guidelines Section 15378, because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment. (Guidelines Section 15378(b) (5)).
PASSED AND ADOPTED this 6th day of September 2011
• I
Agency Chair
CV ' / -7Zette_a,
Agency Secretary
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, Carla Morreale, Agency Secretary of the Rancho Palos Verdes Redevelopment
Agency, hereby certify that the above Resolution No. RDA 2011-15 was duly and
regularly passed and adopted by the said Board at regular meeting thereof held on
September 6, 2011.
J 7/17-gef
Agency Secretary
Resolution No. RDA 2011-15
Page 3 of 3
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Name of Redevelopment Agency: Rancho Palos Verdes Redevelopment Agency
Project Area(s) Project Area No. 1
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
Per AB 26 - Section 34177
Exhibit A
(1) To Be Determined - The County of Los Angeles impounds Agency tax increment to repay the debt to the County. Each December 2nd, after making the scheduled Tax Increment Bond payments,
the remaining amount of
impounded tax increment is applied to the Deferred Interest Debt.
(2) To Be Determined - The Tax Sharing Agreement stipulates that 17% of gross tax increment is to be passed thru to the County Fire Protection District.
(3) To Be Determined - Property Tax Administration Fees are determined by the County of Los Angeles. The Agency typically receives notice of the fee amount in December of each year.
Project Name / Debt Obligation
Payee
Description
Total
Outstanding Debt
or Obligation as
of June 30, 2011
Total Due During
Fiscal Year 2011-
2012
Oct -11
Nov -11
Dec -11
Jan -12
Feb -12
Mar -12
Apr -12
May -12
Jun -12
Total Due Oct -11
thru Jun -12
1)
1997 Tax Increment Bond
County of Los Angeles
Restructured debt to abate active landslides
within the Project Area
5,165,000.00
355,750.00
0.00
0.00
229,125.00
0.00
0.00
0.00
0.00
0.00
126,625.00
$ 355,750.00
2)
1997 Deferred Interest Debt
County of Los Angeles
Accrued interest on original debt to abate active
landslides in the Project Area
798,601.47
TBD (1)
0.00
0.00
TBD (1)
0.00
0.00
0.00
0.00
0.00
0.00
$ -
3)
Consolidated Loan from City
City of Rancho Palos Verdes
Loan from City to abate active landslides in the
Project Area
18,568,185.88
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$ -
4)
Tax Sharing Agreement for Fire
Protection
Los Angeles County Fire
Protection District
Fire protection services
N/A
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
TBD (2)
$ -
5)
Property Tax Administration Fees
County of Los Angeles
Administration of the property tax increment
N/A
TBD (3)
0.00
0.00
TBD (3)
0.00
0.00
0.00
0.00
0.00
0.00
$ -
6)
Contract for Audit
Diehl, Evans & Co., LLP
Independent audit of financial statements
9,400.00
9,400.00
3,133.33
3,133.34
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$ 6,266.67
7)
Abalone Cove Property Assessment
Abalone Cove Landslide
Abatement District
Property assessment for parcels owned by
Agency
0.00
7,008.41
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
7,218.66
$ 7,218.66
8)
Klondike Canyon Property Assessment
Klondike Canyon Landslide
Abatement District
Property assessment for parcels owned by
Agency
0.00
10,967.72
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11,296.75
$ 11,296.75
9)
Contract for Agency Attorney
Richards, Watson & Gershon
Legal services
N/A
10,000.00
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
833.33
$ 7,499.97
10)
JAIVICAL Affordable Housing Project
City of Rancho Palos Verdes
Affordable Housing Fund
Loan to RDA Housing Fund that was then
loaned to AMCAL to fund project construction
costs
11766,368.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$ -
11)
$ -
12)
$ -
13)
$ -
14)
$ -
15)
$ -
16)
$ -
17)
$ -
18)
$ -
19)
$ -
20)
$ -
21)
$ -
22)
$ -
23)
$ -
24)
$ -
25)
$ -
26)
$ -
27)
$ -
28)
$ -
29)
$ -
30)
$ -
Totals
$ 26,307,555.35
$ 393,126.13 11
$ 3,966.66 11
$ 3,966.67
$ 229,958.33
1 $ 145,973.74
$ 388,032.05
(1) To Be Determined - The County of Los Angeles impounds Agency tax increment to repay the debt to the County. Each December 2nd, after making the scheduled Tax Increment Bond payments,
the remaining amount of
impounded tax increment is applied to the Deferred Interest Debt.
(2) To Be Determined - The Tax Sharing Agreement stipulates that 17% of gross tax increment is to be passed thru to the County Fire Protection District.
(3) To Be Determined - Property Tax Administration Fees are determined by the County of Los Angeles. The Agency typically receives notice of the fee amount in December of each year.