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RPVCCA_SA_SR_2012_02_07_C_Adoption_Of_Enforceable_Obligation_Payment_ScheduleCITY OF MEMORANDUM TO: FROM:. DATE: SUBJECT: REVIEWED: Staff Coordinator: HONORABLE CHAIR AND MEMBERS OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY CAROL LYNCH,SUCCESSOR AGENCY ATTORNEY ROBIN HARRIS,DEPUTY SUCCESSOR AGENCY ATTORNEY DENNIS McLEAN,FINANCE OFFICER )CO iJUl DtVt c. FEBRUARY 7,2012 ADOPTION OF ENFORCEABLE OBLIGATION PAYMENT SCHEDULE CAROLYN LEHR,EXECUTIVE DIRECTOR~..for~L. Kathryn Downs,Deputy Director of Finance &Information Technology RECOMMENDATION Staff recommends that the Soard of Directors of the Successor Agency to the Rancho Palos Verdes Redevelopment Agency adopt Resolution No.2012-,adopting an enforceable obligation payment schedule. EXECUTIVE SUMMARY Adoption of an enforceable obligation payment schedule will allow the Successor Agency to pay enforceable obligations of the former redevelopment agency. DISCUSSION This agenda item addresses an outcome of the California Supreme Court's decision in California Redevelopment Association,eta!.v.Matosantos,eta!.(Case No.S194861),the litigation challenging AS X1 26 (liAS 26)and AS X1 27 ("AS 27").AS 26 and AS 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 AS 26 (which provides for the windup and dissolution of redevelopment agencies),invalidated AS 27 (which provided for an alternative voluntary redevelopment program),and held that AS 26 may be severed from AS 27 and enforced SA C-1 ADOPTION OF ENFORCEABLE OBLIGATION PAYMENT SCHEDULE February 7,2012 Page 2 of2 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 were dissolved and cities do not have the option of making remittance payments to enable the continued operation of redevelopment agencies.The City is the successor agency for the Rancho Palos Verdes Redevelopment Agency (the "Successor Agency")and the board of the Successor Agency (the "Board") consists of the members of the City Council. Pursuant to Health and Safety Code Section 34177,successor agencies are required to continue to make payments due for enforceable obligations of the former redevelopment agencies.On and after February 1,2012,and until a Recognized Obligation Payment Schedule becomes operative,only payments required pursuant to an enforceable obligation payment schedule shall be made.Accordingly,the Successor Agency must adopt an enforceable obligation payment schedule. SA C-2 RESOLUTION NO.2012- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A.AB X1 26 and AB X1 27 were signed by the Governor of California on June 29,2011,making certain changes to the Community Redevelopment Law (Part 1 (commencing with Section 33000)of Division 24 of the California Health and Safety Code)(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"). B.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 AB X1 26 and AB X1 27 are unconstitutional.On December 29,2011,the Supreme Court issued its opinion in the Matosantos case largely upholding AB X1 26,invalidating AB X1 27,and holding that AB X1 26 may be severed from AB X1 27 and enforced independently. C.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. D.As a result of the Supreme Court's decision,the Rancho Palos Verdes Redevelopment Agency (the "Redevelopment Agency"),a redevelopment agency in the City of Rancho Palos Verdes (the "City"),created pursuant to the Redevelopment Law, was dissolved pursuant to Part 1.85 on February 1,2012. E.By its Resolution No.2011-66,adopted on September 6,2011,the City Council of the City made an election to serve as the successor agency for the Redevelopment Agency under Part 1.85 (the 'Successor Agency"). F.By its Resolution No.2012-__,adopted on February 7,2012,the City Council,acting as the governing board for the Successor Agency,established rules and regulations applicable to the governance and operation of the Successor Agency,and pursuant to such resolution provided that the Successor Agency will be governed by a Board of Directors (the "Board")consisting of the members of the City Council of the City. SA C-3 G.By its Resolution No.RDA 2012-01,the Redevelopment Agency approved an Enforceable Obligation Payment Schedule,as amended. H.Health and Safety Code Section 34177(a)provides that successor agencies are required to continue to make payments due for enforceable obligations. Health and Safety Code Section 34177(a)(1),as modified by the Supreme Court, provides that on and after February 1,2012,and until a Recognized Obligation Payment Schedule becomes operative,only payments required pursuant to an enforceable obligation payment schedule shall be made.The enforceable obligation schedule may be amended by the successor agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board has sufficient members to form a quorum. I.'Accordingly,the Board desires to adopt this Resolution adopting an enforceable obligation schedule. NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO 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 34177. Section 3.The Board hereby adopts the enforceable obligation payment schedule attached as Exhibit A to this Resolution and incorporated herein by reference (the "Enforceable Obligation Payment Schedule"). Section 4.The Secretary is hereby authorized and directed to post the Enforceable Obligation Payment Schedule on the City's web site. Section 5.The Enforceable Obligation Payment Schedule may be amended from time to time at any public meeting of the Board. Section 6.The Secretary is hereby authorized and directed to transmit a copy of the Enforceable Obligation Payment Schedule by mail or electronic means to the County Auditor-Controller,the State Controller,and the California Department of Finance (the "Department of Finance").A notification providing the Internet Web site location shall suffice. Section 7.The officers and staff of the Successor Agency are hereby 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 Enforceable Obligation Payment Schedule to the SA C-4 Department of Finance and the State Controller in the manner of their choosing,and any such actions previously taken by such officers are hereby ratified and confirmed. The Board hereby designates the Direction of Finance &Information Technology as the official to whom the Department of Finance may make requests for review in connection with the Enforceable Obligation Payment Schedule. PASSED AND ADOPTED this 7th day of February,2012. Chair ATTEST: Secretary SA C-5 Name of 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 Pay nents bv MonthDebtorTotalDueDuring Proiect Name I Debt Obli Payee Description Oblioation Fiscal Year Au~·11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Mav-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 Defened Interest landslides in the Project 2 Debt County of Los Angeles Area 798,601.47 TBDl1 0.00 0.00 0.00 0.00 363,698.36 0.00 0.00 0.00 0.00 0.00 0.00 $363,698.36 Loan from City 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 Fire TBDl1 TBDl14\Fire Protection Protection District Fore protection services NlA 0.00 0.00 0.00 5,266.08 68,369.03 TBDl1 TBD(l TBDl1 TBDl1 TBDl1 TBDI1 Properly Tax Administration Administration of the 5 Fees County of Los Angeles properly tax increment NlA TBDI2 0.00 0.00 0.00 36.18 17,630.56 TBDI2 TBDI2\TBDC2 TBDl2 TBDl2 TBD(2 TBD (2) Independent audR of 6 Contract for AudR Diehl,Evans &Co.,UP 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 Properiy Abalone Cove Landslide Properly 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 11,298.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,296.75 $11,298.75 Contract for Agency Richards,Watson & 9 Attorney Gershon Legal services NIA 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 Houslno Fund construction costs 1,331,332.76 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 Stabllltv Hardv &Hamer Gradlno 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 $- 20)$- Totals $26,027,436.11 $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 -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. S A C - 6