RPVCCA_RDA_SR_2012_01_17_D_RDA_Dissolution_Amendment_Of_Enforceable_Obligation_Payment_ScheduleCITY OF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE CHAIR AND MEMBERS OF THE BOARD
CAROL LYNCH,AGENCY ATTORNEY
ROBIN HARRIS,DEPUTY AGENCY ATTORNEY ~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION~
TECHNOLOGY
JANUARY 17,2012
NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION·
AMENDMENT OF ENFORCEABLE OBLIGATION PAYMENT
SCHEDULE
CAROLYN LEHR,EXECUTIVE DIRECTOR 09---
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information
Technology tLO
RECOMMENDATION
Adopt Resolution RDA 2012-__,A RESOLUTION OF THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY APPROVING AMENDMENTS TO THE ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE AND CERTAIN RELATED ACTIONS.
BACKGROUND
This agenda item is to address an outcome of the California Supreme Court's decision in
California Redevelopment Association,eta!.v.Matosantos,eta!.(Case No.S194861),the
litigation challenging AB X1 26 ("AB 26)and AB X1 27 ("AB 27").AB 26 and AB 27,which
were signed by the Governor of California on June,29,2011,added Parts 1.8 and 1.85 to
the Community Redevelopment Law.
The Supreme Court largely upheld AB 26,invalidated AB 27,and held thatAB 26 may be
severed from AB 27 and enforced independently.The Supreme Court generally revised
the effective dates and deadlines for performance of obligations in Part 1.85 (the
dissolution provisions)arising before May 1,2012 to take effect four months later.As a
result of the Supreme Court's decision,on February 1,2012,all redevelopment agencies
are dissolved and successor agencies are designated as successor entities to the former
redevelopment agencies.
RDA D-1
NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION·
AMENDMENT OF ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
January 17,2012
Page 2 of2
Pursuant to Health and Safety Code Section 34169(a),until successor agencies are
authorized,redevelopment agencies must continue to make all scheduled payments for
enforceable obligations as defined in Health and Safety Code Section 34167(a).Pursuant
to Health and Safety Code Section 34167(h),redevelopment agencies shall not make a
payment unless it is listed in an adopted enforceable obligation payment schedule
("EOPS"),other than payments required to meet obligations with respect to bonded
indebtedness.
The Agency previously adopted an EOPS.In accordance with Health and Safety Code
Section 34169(g),the original EOPS only lists payments obligated to be made,by month,
through December 2011.Since the Agency will not be dissolved until February 1,2012,
staff recommends that the Agency adopt the attached Resolution to amend the EOPS to
include payments coming due after December 2011.Subsequently,the City,as successor
agency,will consider adoption of the Agency's EOPS as the successor agency's EOPS
(with any appropriate modifications),and the successor agency will pay enforceable
obligations pursuant to the EOPS until such time as a recognized obligation schedule
becomes operative.
Amounts Added to the Amended EOPS
Staff has added $65,000 to the Amended EOPS to provide for the final payment to Hardy
&Harper for the landslide stability project (Palos Verdes Drive South roadside grading).
This project was funded with accumulated fund balance from the Portuguese Bend Capital
Projects Fund,and was not funded with tax increment revenue.
In addition,as authorized by the December 1,2003 loan agreement between the City and
the Agency,Staff has added the following administrative expenses incurred by the City
during FY1 0-11 to the balance of the loan from the City to the Agency:
>-The FY10-11 Supplemental Education Revenue Augmentation Fund (SERAF)
payment of $67,967;and
>-The FY10-11 property tax increment administration fee of $21 ,951 charged by the
County.
FISCAL IMPACT
Amendment of the EOPS will authorize the Agency to pay its enforceable obligations after
December 31,2011 and prior to dissolution of the Agency on February 1,2012.
RDA D-2
RESOLUTION NO.RDA 2012-
A RESOLUTION OF THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY APPROVING AMENDMENTS TO THE
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND CERTAIN
RELATED ACTIONS
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").
S..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.
C.AS X1 26 AND AS X1 27 were 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)("Part 1.8")and Part 1.85 (commencing with
Section 34170)("Part 1.85")to Division 24 of the California Health and Safety Code.
D.The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of California (California Redevelopment
association,et al.v.Matosantos,et al.(Case No.S194861))alleging that AS X1 26 and
AS X1 27 are unconstitutional.On August 11,2011,the Supreme Court issued a stay
order,which was subsequently modified on August 17,2011.Pursuant to the modified
stay order,the Supreme Court granted a partial stay of AS X1 26 and AS X1 27.
E.On December 29,2011,the Supreme Court issued its opinion in the
Matosantos case largely upholding AS X1 26,invalidating AS X1 27,and holding that
AS X1 26 may be severed from AS X1 27 and enforced independently.
F.The Supreme Court generally revised the effective dates and deadlines for
performance of obligations in Part 1.85 arising before May 1,2012 to take effect four
months later.The Supreme Court did not revise the effective dates or deadline for
performance of obligations in Part 1.8.
G.As a result of the Supreme Court's decision,on February 1,2012,all
redevelopment agencies are dissolved and successor agencies are designated as
successor entities to the former redevelopment agencies.Pursuant to Health and
Safety Code Section 34169,until successor agencies are authorized,redevelopment
agencies must continue to make all scheduled payments for enforceable obligations as
defined in Health and Safety Code Section 34167(a).Pursuant to Health and Safety
Code Section 34167,redevelopment agencies shall not make a payment unless it is
listed in an adopted enforceable obligation payment schedule,other than payments
required to meet obligations with respect to bonded indebtedness.
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H.The Agency adopted Resolution No.RDA 2011-13 on August 24,2011,
adopting an Enforceable Obligation Payment Schedule.The Enforceable Obligation
Schedule is attached hereto as Exhibit A and incorporated herein by reference (the
"Original EOPS").In accordance with Health and Safety Code Section 34169,the
Original EOPS only lists payments obligated to be made,by month,through December
2011.Accordingly,the Agency desires to adopt this Resolution to amend the Original
EOPS to include payments obligated to be made after December 31,2011.
I.The amended EOPS is set forth on Exhibit B attached to this Resolution
and incorporated herein by reference (the "Amendments").
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.The Agency hereby adopts the Amendments.The Amended
EOPS shall constitute the EOPS of the Agency.
Section 3.The Agency Secretary is hereby authorized and directed to post
this Resolution,including the Exhibits,on the City's Internet Web site
www.palosverdes.com/rpv.
Section 4.Prior to dissolution,the Agency may amend the EOPS from time to
time at any public meeting of the Agency.Any such further amendments shall be
posted to the City's Internet Web site www.palosverdes.com/rpv.
Section 5.The Agency Secretary is hereby authorized and directed to
transmit a copy of this Resolution,including the Exhibits,by mail or electronic means to
the County Auditor-Controller,the State Controller,and the California Department of
Finance.A notification providing the Internet Web site location of the posted copy of
this Resolution will suffice.
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,including providing documents associated
with the Amendments to the California Department of Finance and the State Controller,
and any such actions previously taken by such officers and staff are hereby ratified and
confirmed.
Section 7.The Agency hereby affirms the designation of the Director of
Finance &Information Technology as the Agency official to whom the California
Department of Finance may make requests for review in connection with the
Amendments.
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Section 8.The adoption of this Resolution is not intended to 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 AS X1 26 through administrative or judicial proceedings.
Section 9.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 1ih day of January,2012.
Chair
ATTEST:
Agency Secretary
RDA D-5
Name of Redevelopment Agency:
Project Area(s)
Rancho Palos Verdes Redevelopment Agency
Project Area NO.1
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
Per AS 26·Section 34167 and 34169
Exhibit A
.
Total Outstanding Payments by MonthDebtorTotalDueDuring
Project Name I Debt Obligation Payee Description Oblioation Fiscal Year Aug Sept OCt Nov Dec Total
Restructured debt to abate active landslides
1 1997 Tax Increment Bond County of Los Angeles within the Project Area 5,165,000.00 355,750.00 0.00 0.00 0.00 0.00 229,125.00 $229,125.00
Accrued interest on original debt to abate
2 1997 Deferred Interest Debt County of Los Angeles active landslides in the Project Area 798,601.47 TBD(1 0.00 0.00 0.00 0.00 TBD(1 $-
Loan from City to abate active landslides in the
3 Consolidated Loan from City City of Rancho Palos Verdes Project Area 18,568,185.88 0.00 0.00 0.00 0.00 0.00 0.00 $-
Tax Sharing Agreement for Fire Los Angeles County Fire
4 Protection Protection District Fire protection services NIA TBD(2 TBD(2 TBD(2 TBD(2 TBD(2 TBD(2 $-
5 Properly Tax Administration Fees County of Los Angeles Administration of the properly tax increment NlA TBDl3 0.00 0.00 0.00 0.00 TBDl3 $-
6 Contract for Audtl Diehl,Evans &Co.,LLP Independent audtl of financial statements 9,400.00 9,400.00 0.00 3,133.33 3,133.33 3,133.34 0.00 $9,400.00
Abalone Cove Landslide Properly assessment for parcels owned by
7 Abalone Cove Properly Assessment Abatement District Agency 0.00 7,008.41 0.00 0.00 0.00 0.00 0.00 $-
Klondike Canyon Landslide Properly assessment for parcels owned by
8 Klondike Canyon Properly Assessment Abatement District Agency 0.00 10,967.72 0.00 0.00 0.00 0.00 0.00 $-
Richards,Watson &
9 Contract for Agency Attorney Gershon Legal services NlA 10,000.00 833.33 833.33 833.33 833.33 833.33 $4,166.65
Loan to RDA Housing Fund that was then
City of Rancho Palos Verdes loaned to AMCAL to fund project construction
10 AMCAL Affordable Housina Proiect Affordable Housing Fund costs 1,766,368.00 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 1$26,307,555.351 $393,126.13 1$833.331 $3,966.66 1$3,966.6611 $3,966.6711 $229,958.331 $242,691.65
(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 -Properly 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.
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Name of Agency:
Project Area(s)
Rancho Palos Verdes Redevelopment Agency
Project Area No.1
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
Per AB 26·Section 34167 and 34169
ExhibitB
Total -
Outstanding Pay nents by MonthDebtorTotalDueDuring
Prolect Name I Debt Obli Payee Description Oblioation Fiscal Year Aug.11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Total
Restructured debt to abate
active landslides within the
1 1997 Tax Increment Bond County of Los Angeles Project Area 5,165,000.00 355,750.00 0.00 0.00 0.00 0.00 229,125.00 0.00 0.00 0.00 0.00 0.00 126,625.00 $355,750.00
Accrued interest on original
debt to abate active
1997 Deferred Interest landslides in the Project
2 Debt County of Los Angeles Area 798,601.47 TBDC1 0.00 0.00 0.00 0.00 363,699.38 0.00 0.00 0.00 0.00 0.00 0.00 $363,698.38
Loan from CIiy to abate
Consolidated Loan from City of Rancho Palos active landslides In the
3 City Verdes Project Area 18,658,103.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $-
Tax Sharing Agreement for Los Angeles County Are
4\Are Protection Protection District Are protection services NlA TBDI1 0.00 0.00 0.00 5,266.08 88,389.03 TBDI1 TBD 11\TBDI1 TBDC1 TBD(1 TBDC1 TBDC1
Properly Tax Administratior Administration of the
5 Fees County of Los Angeles properly tax increment NlA TBDC2]0.00 0.00 0.00 36.18 17,630.56 TBDC2 TBD(2 TBD(2 TBDC2 TBDC2 TBDI2 TBDI2
Independent audri of
6\Contract for Audit Diehl,Evans &Co.,LLP financial statements 9,400.00 9,400.00 0.00 0.00 0.00 2,000.00 1,000.00 5,293.00 1,107.00 0.00 0.00 0.00 0.00 $9.400.00
Abalone Cove Properly Abalone Cove Landslide Properiy assessment for
7 Assessment Abatement District parcels owned by Agency 0.00 7,218.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,218.66 $7,218.66
Klondike Canyon Properly Klondike Canyon Landslide Properly assessment for
8 Assessment Abatement District parcels owned by Agency 0.00 11,296.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,296.75 $11,296.75
Contract for Agency Richards,Watson &
9 Attorney Gershon Legal services NlA 10,000.00 0.00 0.00 342.91 21.99 1,376.44 1,376.44 1,376.44 1,376.44 1,376.44 1,376.44 1,376.46 $10,000.00
Loan to RDA Housing Fund
City of Rancho Palos that was then loaned to
Verdes Affordable Housing AMCAL to fund project
10 AMCAL Affordable Housina Fund construction costs 1,766,388.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $-
11 Landslide Stabilriv Hardv &Haroer Grading at PVDS 65,000.00 65,000.00 0.00 0.00 0.00 0.00 0.00 65,000.00 0.00 0.00 0.00 0.00 0.00 $65,000.00
12 $-
13 $-
14 $-
15 $-
16 $-
17)$-
18 $-
19 $-
20)$-
Totais $26,462,473.35 $458,665.41 $ - $ -
$342.91 $7,324.25 $681,219.41 $71,669.44 $2,483.44 $1,376.44 $1,376.44 $1,376.44 $146,516.87 $822,363.79
(1)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.
(2)To Be Determined -Properly 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.
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