RPVCCA_SA_SR_2012_02_21_C_Adoption_Of_Enforceable_Obligation_Payment_ScheduleCrTYOF
MEMORANDUM
RANCHO PALOS VERDES
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~NCY ATTORNEY
DENNIS McLEAN,FINANCE OFFICER ~
FEBRUARY 21,2012
ADOPTION OF ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
CAROLYN LEHR,EXECUTIVE DIRECTOR~
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Staff recommends that the Board 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,et al.v.Matosantos,et al.(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 (which provides forthe windup and dissolution of
redevelopment agencies),invalidated AB 27 (which provided for an alternative voluntary
redevelopment program),and held that AB 26 may be severed from AB 27 and enforced
SA C-1
ADOPTION OF ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
February 21 ,2012
Page 2 of 2
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 ENFORC~ABLE
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 21,2012,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 enforce~ble 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 21 st 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 Payments by MonthOutstandingDebtTDtalDueDuring
Project Name I Debt Obli Payee Description or Obli~ation 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
landslides in the Project
2)1997 Deferred Interest Debt County of Los Angeles Area 798,601.47 363,698.38 0.00 0.00 0.00 0.00 363,698.38 0.00 0.00 0.00 0.00 0.00 0.00 $363,69R38
Loan from City to abate
Consolidated Loan from City of Rancho Palos active landslides in the
3)City Verdes Project Area 19,290,347.50 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
4)Fire Protection Protection District Fire protection services NIA TBD(1)0.00 0.00 0.00 5,266.08 68,389.03 TBD(1) TBD(1)TBD(1)TBD(1)TBD(1)TBD(1)TBD (1)
Property Tax Administration Administration of the
5)Fees County of Los Angeles property tax increment NIA TBD(2)0.00 0.00 0.00 36.18 17,630.56 TBD(2)TBD(2)TBD(2) TBD(2)TBD(2)TBD(2)TBD(2)
Independent audit of
financial statements and
other audits related to
6)Independent Audit Services Diehl,Evans &Co.,LLP dissolution NIA 29,400.00 0.00 0.00 0.00
2,000.00 1,000.00 5,293.00 1,107.00 5,000.00 5,000.00 5,000.00 5,000.00 $29,400.00
Abalone Cove Property Abalone Cove Landslide Property 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 Property Klondike Canyon Landslide Property 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
Legal services (including
Richards.Watson &those related to dissolution
9)Agency Attorney Gershon activities)NIA 150,364.90 0.00 0.00 342.91 21.99 0.00 0.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 $150,364.90
Loan to RDA Housing Fund
City of Rancho Palos that was then loaned to
Verdes Affordable Housing AMCAL to fund project
10)AMCAL Affordable Housing Fund construction costs 1,334,559.40 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 Stability Hardy &Harper 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
Successor Agency's
administrative costs related
12)Administration To Be Determined to dissolution activities NIA 75,000.00 0.00 0.00 0.00 0.00 0.00 0.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 $75,000.00
County deferral of tax
increment it would
County Deferral of Tax otherwise receive pursuant
13)Increment County of Los Angeles to a Settlement Agreement Unknown 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $
14)$
15)$
16)$
17)$
18)$
19)$
20)$
Totals 1$26,653,508.37 II $1,057,728.6911~~11 $342.91 II $7,324.2511 $679,842.9711 $70,293.00 I $46,107.00 1$50,000.00 II $50,000.00 II $50,000.00 II $195,140.41 I $1,057,728.69
(1)To 8e 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 8e 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