RPVCCA_SA_SR_2012_02_21_E_Adoption_Of_Recognized_Obligation_Payment_ScheduleCITY OF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE CHAIR AND MEMBERS OF THE BOARD OF
DIRECTORS OF THE SUCCESSOR AGENCY TO THE RANCHa~
PALOS VERDES REDEVELOPMENT AGENCY ~
CAROL LYNCH,SUCCESSOR AGENCY ATTORNEY
ROBIN HARRIS,DEPUTY SUCCESSOR AGENCY ATTORNEY
DENNIS McLEAN,FINANCE OFFICER
FEBRUARY 21,2012
ADOPTION OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE
CAROLYN LEHR,EXECUTIVE DIRECTOR ~
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information If f\
Technology \,~J
RECOMMENDATION
Staff recommends that the Board of Directors of the Successor Agency to the Rancho
Palos Verdes Redevelopment Agency adopt Resolution No.2012-,approving the initial
draft Recognized Obligation Payment Schedule.
EXECUTIVE SUMMARY
Preparation of a draft initial Recognized Obligation Payment Schedule is in furtherance of
allowing 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 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
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ADOPTION OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE
February 21 ,2012
Page 2 of 2
redevelopment program),and held that AB 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 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
prepare a draft initial Recognized Obligation Payment Schedule by March 1,2012.
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RESOLUTION NO.2012-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY APPROVING A DRAFT INITIAL
RECOGNIZED 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.
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G.Health and Safety Code Section 34177(1),as modified by the California
Supreme Court,provides that by March 1,2012,the Successor Agency must prepare a
draft initial Recognized Obligation Payment Schedule for the enforceable obligations of
the former Redevelopment Agency,in accordance with the requirements of paragraph
(I).The draft schedule must be reviewed and certified,as to its accuracy, by an external
auditor designated at the county auditor-controller's direction pursuant to Health and
Safety Code Section 34182.The certified Recognized Obligation Payment Schedule
must be submitted to and approved by the oversight board.Finally,after approval by
the oversight board,a copy of the approved Recognized Obligation Payment Schedule
must be submitted to the county auditor-controller,the State Controller and the State
Department of Finance ("DOF"),and be posted on the Successor Agency's web site.
The first Recognized Obligation Payment Schedule submitted to the State Controller
and the QOF will be for payments for the period of January 1,2012 to June 30,2012,
inclusive.
H.Accordingly,the Board desires to adopt this Resolution approving a draft
initial Recognized Obligation Payment Schedule in accordance with Paragraph G.
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 approves the draft 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
Successor Agency,in consultation with the Successor Agency's legal counsel,may
modify the ROPS as the Executive Director or the Successor Agency's legal counsel
deems necessary or advisable.
Section 4.The Board hereby designates the Finance Officer as the official to
whom the DOF may make requests for review in connection with the ROPS and who
shall provide the DOF with the telephone number and e-mail contact information for the
purpose of communicating with the DOF.
Section 5.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 submitting the
certified Recognized Obligation Payment Schedule to the oversight board for approval,
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and any such actions previously taken by such officers are hereby ratified and
confirmed.
PASSED AND ADOPTED this 21 st day of February,2012.
Chair
ATTEST:
Secretary
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EXHIBIT A
DRAFT INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE
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Name of Agency:
Project Area(s)
Rancho Palos Verdes Redevelopment Agency
Project Area No.
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
Per AS 26 -Section 34177
Exhibit A
Total
Outstanding Debt Total Due During
Project Name I Debt Obli Payee Description Funding Source or Obliqation Six-Month Period Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Total
Restructured debt to abate
active landslides within the Redevelopment Property
1)1997 Tax Increment Bond County of Los Angeles Project Area Tax Trust Fund 5,165,000.00 355,750.00 0.00 0.00 0.00 0.00 0.00 373,250.00 $373,250.00
Accrued interest on original
debt to abate active
1997 Deferred Interest landslides in the Project Redevelopment Property
2)Debt County of Los Angeles Area Tax Trust Fund 434,903.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $
Loan from City to abate
Consolidated Loan from City of Rancho Palos active landslides in the Redevelopment Property
3 City Verdes Project Area Tax Trust Fund 19,290,347.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $
Tax Sharing Agreement for Los Angeles County Fire Redevelopment Property
4)Fire Protection Protection District Fire protection services Tax Trust Fund N/A TBD (1)TBD'1}TBD (1)TBD(1)TBD(1)TBD(1}TBD(1)TBD (1)
Property Tax Administration of the Redevelopment Property
5 Administration Fees County of Los Angeles property tax increment Tax Trust Fund NIA TBD(2)TBD(2)TBD (2)TBD (2)TBD(2)TBD(2)TBD (2 TBD (2)
Independent audit of Redevelopment Property
financial statements and Tax Trust Fund I
Independent Audit other audits related to Administrative Cost
6)Services Diehl,Evans &Co.,LLP dissolution Allowance N/A 26,400.00 5,293.00 1,107.00 5,000.00 5,000.00 5,000.00 5,000.00 $26,400.00
Abalone Cove Property Abalone Cove Landslide Property assessment for Redevelopment Property
7)Assessment Abatement District parcels owned by Agency Tax Trust Fund 0.00 7,218.66 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 Redevelopment Property
8)Assessment Abatement District parcels owned by Agency Tax Trust Fund 0.00 11,296.75 0.00 0.00 0.00 0.00 0.00 11,296.75 $11,296.75
Redevelopment Property
Legal seNices (including Tax Trust Fund I
Successor Agency Richards,Watson &those related to dissolution Administrative Cost
9)Attorney Gershon activities)Allowance NIA 150,000.00 0.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 $150,000.00
Loan to RDA Housing Redevelopment Property
City of Rancho Palos Fund that was then loaned Tax Trust Fund and Low-
Verdes Affordable Housing to AMCAL to fund project Moderate Income Housing
10)AMCAL Affordable Housin Fund construction costs Fund 1,334,559.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $
11 Landslide Stabilitv Hardv &Haroer Gradino at PVDS 65,000.00 65,000.00 65,000.00 0.00 0.00
0.00 0.00 0.00 $65,000.00
Redevelopment Property
Successor Agency's Tax Trust Fund I
administrative costs related Administrative Cost
12)Administration To Be Determined to dissolution activities Allowance NIA 75,000.00 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 Redevelopment Property
13)Increment County of Los Angeles to a Settlement Agreement Tax Trust Fund Unknown 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $
14 $
15 $
16)$
17 $
18 $
19 $
20)$
Totals 1$26,289,809.9911 $690,665.4111 $70,29300 II $46,107.00 II $50,000.00 II $50,000.00 II $50,00000 II $441,765.41 1 $708,165.41
(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,
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