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Home My WebLink About02. Adopt Resolution Approving ROPSDATE: FEBRUARY 25, 2015 TO:: CHAIR AND MEMBERS OF THE OVERSIGHT BOARD FROM: GILBERT A. LIVAS, Executive Director, Downey Successor Agency tv RESOLUTION APPROVING -•- ._ FOR THE PERIOD OF JULY 1, 2015 THROUGH DECEMBER 31, 2015 That the Oversight Board adopt the following Resolution. • • • • oil Collin, 1•'- 1 - • 1 1 IFT"M ► ZT9111 \ I oil 9 • The Downey Successor Agency is tasked with winding down the redevelopment affairs of the Downey Community Development Commission (CDC), including making payments that are due on approved enforceable obligations and preparing the Recognized Debt Payment Schedules (BOPS) required under Assembly Bill 1X26. Per the timeline prescribed in the Legislation, the ROPS for the next six -month period must be submitted to the Oversight Board for its review and approval. Following approval from the Oversight Board, the RODS must be submitted to the Department of Finance (DOF), the State Controller, and the Los Angeles County Auditor - Controller, by March 3, 2015. This RODS covers the six -month period of July 1, 2015, through December 31, 2015. Only debt payments listed on an approved ROPS may be paid with funds received by Successor Agency from the Redevelopment Property Tax Trust Fund (RPTTF). The Successor Agency is requesting approval on $785,888 for the applicable six -month period. Below is a brief description of the debt obligations listed in the attached ROPS 14 -15A. 1) 1997 Tax Allocation Bonds — The ROPS includes $481,309 for the next bond payment which is due in by August 1, 2015. The current outstanding balance on the bonds as of June 30, 2015 is $6,295,000. 2) Development Agreements — The ROPS includes $203,026 for payments which are due on two Development Agreements which were recognized as enforceable obligations by the California Department of Finance. Resolution Approving the Recognized Obligation Payment Schedule (ROPS) February 25, 2015 Page 2 • Bob's Big Boy OPA — Under this OPA, a $25,000 payment is due in November 2015. In 2008, the CDC entered into an Owner Participation Agreement (OPA) with JKBBD Inc. to establish a Bob's Big Boy restaurant franchise at the former Harvey Broilers location. Under this OPA, an annual payment of $25,000 will be paid out over the next six years. The current unpaid obligation balance is $150,000. Champion Dodge/ Chrysler /Jeep Dealership — This Owner Participation Agreement (OPA) was instrumental in bringing a new Chrysler and Jeep franchise to the City in 2010. Under this OPA, an obligation of $500,000 was encumbered to the project. The remaining obligation balance is $192,475. The ROPS includes $80,000 for the estimated payment which is due in September 2015. 3) Administrative Costs — The ROPS includes $125,000 for administrative and consulting expenses projected to be incurred by the Successor Agency. Per AB 1X26, the Successor Agency may receive an "administrative allowance" for administrative expenses incurred by the Successor Agency during the six - month period. The maximum reimbursement amount per fiscal year is $250,000. The second half of the administrative allowance will be requested in the subsequent ROPS (BOPS 15 -16B) City Loan Agreements — The ROPS includes a "$74,579 request for the loan payment towards the outstanding principal on Operative Agreement No 25. The Department of Finance has recognized Agreement No. 25 as an enforceable obligation per its letter dated November 8, 2013. The outstanding principal balance on this Agreement as of June 30, 2015 was $1,010,861. The amount requested is based on a worksheet developed by the Department of Finance and is compliant with the formula outlined in HSC section 34191.4(b)(2), limits the amount of RPTTF funds available for repayment of loan agreements between the Successor Agency and the City of Downey. Attachments: "A" - Resolution and ROPS 14 -15A "B" DOF Letter dated November 18, 2013 A RESOLUTION OF THE OVERSIGHT BOARD TO THE DOWNEY SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2015 THROUGH DECEMBER 31, 2015 WHEREAS, as a result of the passage of Assembly Bill 26 from the 2011 -12 First Extraordinary Session of the California Legislature ( "ABx1 26" or the "Dissolution Act "), the City of Downey Redevelopment Agency ( "RDA ") was dissolved on February 1, 2012; and WHEREAS, pursuant to Assembly Bill 1484 of the 2011 -12" Legislative Session ( "AB 1484 "), the Downey Successor Agency for the former RDA ( "Successor Agency ") is a separate public agency now charged with winding down the RDA's affairs, including making payments due for enforceable obligations (as defined in the Dissolution Act), and perform obligations required pursuant to enforceable obligations; and WHEREAS, the Oversight Board to the Successor Agency to the dissolved redevelopment agency functions of the Downey Community Development Commission has been appointed pursuant to the provisions of Health & Safety Code Section 34179; and WHEREAS, pursuant to Health and Safety Code sections 34177(1) and 34180(8), the Oversight Board must approve a Recognized Obligation Payment Schedule for it to become established, valid, and operative for the applicable six -month fiscal period. NOW, THEREFOREBE IT RESOLVED by the Oversight Board as follows: SECTION 1. The foregoing Recitals are true and correct and are incorporated herein. SECTION 2. The Recognized Obligation' Payment Schedule ("ROPS") covering the period of July 1, 2015, through December 31, 2015, attached hereto and incorporated herein by reference as Exhibit "A", is hereby approved pursuant to Health and Safety Code Sections 34177 and 34180, and any other law that may apply to the approval by the Oversight Board of the identified ROPS for the identified periods. SECTION 3. The Secretary or authorized designee is hereby directed to post this Resolution and the identified ROPS for the identified periods on the Successor Agency's website, and to provide a copy of the identified ROPS for the identified periods to the State Controller's Office, State Department of Finance, and the County Auditor- Controller. Attachment "A" OVERSIGATBOAAUA r. PAGE SECTION 4. The Secretary shall certify to the adoption of this Resolution. PASSED AND ADOPTED by the Oversight Board at a meeting held on the 25th day of February, 2015. CHAIR, OVERSIGHT BOARD ATTEST: SECRETARY, OVERSIGHT BOARD STATE OF CALIFORNIA COUNTY OF ) SS CITY OF ) I, , Secretary to the Oversight Board, hereby certify that the foregoing resolution was duly adopted at a meeting of the Oversight Board, held on the 25th of February, 2015. AYES: Board Members: NOES: Board Member: ABSENT: Board Member: ABSTAIN: Board Member: SECRETARY, OVERSIGHT BOARD OVERSIGHT BOARD RESOLUTION NO PAGE 3 Recognized Obligation Payment Schedule 2014-15A (Attached) Recognized Obligation Payment Schedule (ROPS 15-16A) - Summary Filed for the July 1, 2015 through December 31, 2015 Period Name of Successor Agency: Downey Name of County: Los Angeles Current Period Requested Funding for Outstanding Debt or Obligation Six-Month Total Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding A Sources (B+C+D): $ Successor A enc Self-Reported Prior I Enforceable Obligations funded with RPTTF (E): 785,888 J Less Prior Period Adjustment (Report of Prior Period Adjustments Column S) (89,75 K Adjusted Current Period RPTTF Requested Funding (I-J) $ 696,138 IM to Current Period RPTTF Requested Fundin F0.7 I Title /s/ - — — ----- Signature Date Recognized Obligation Payment Schedule (ROPS 15 -16A) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (I), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the RODS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see htt E.Yrad dof &a, irad- sa , df Casl1 Balance enc Ti s Sheet. dt A B C D E IF G H- Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS Prior ROPS period balances RPTTF Bonds Issued Bonds Issued and DDR RPTTF distributed as Rent, Non -Admin on or before on or after balances reserve for future Grants, and Cash Balance Information by ROPS Period 12/31/10 01/01/11 retained period(s) Interest, Etc. ' Admin Comments ROPS 14 -1SA Actuals (07101114 - 12131114) 1 Beginning Available Cash Balance (Actual 07101114) 2 Revenue /Income (Actual 12131/14) RPTTF amounts should tie to the ROPS 14 -15A distribution from the County Auditor - Controller during June 2014 1,387,383 - 3 Expenditures for ROPS 14 -15A Enforceable Obligations (Actual 12131114) RPTTF amounts, H3 plus H4 should equal total reported actual expenditures in the Report of PPA, Columns L and Q 1,297,633 4 Retention of Available Cash Balance (Actual 12131114) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 14 -15A RPTTF Prior Period Adjustment RPTTF amount should tie to the self- reported ROPS 14 -15A PPA in the No entry required Report of PPA, Column S 89,750 6 Ending Actual Available Cash Balance CtoG= (1+2- 3- 4),H= (1+2- 3 -4 -5) 1 $ $ $ a $ _T$ - $ ROPS 14 -15B Estimate 01101/15 - 06/30/15 7 Beginning Available Cash Balance (Actual 01/01115) (C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6) $ $ $ $ F $ $ 89,750 8 Revenuelincome (Estimate 06130115) RPTTF amounts should tie to the ROPS 14 -15B distribution from the County Auditor - Controller during January 2015 267,460 9 Expenditures for ROPS 14 -15B Enforceable Obligations (Estimate 06130115) 267,067 10 Retention of Available Cash Balance (Estimate 06130115) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10) $ $ $ $ $ _ $ 90,143 City of Downey 11111 Brookshire Avenue Downey, CA 90241 F07-7:2ZAMPMis Subject: Approval of Oversight Board Action If . MFOA a In-M 7-_TakMQJ9&W • RV a, *JJV'oJJaW - fifl "REM of the • action. Based on our review and application of the law, OB Resolution 13-0016 is approved. It is our understanding the resolution approves the reinstatement of twelve loan agreements between the City of Downey and the Agency. In addition, the OB makes findings that the loans were for legitimate redevelopment purposes. It is also our understanding the Agency received a Findin'! of Completion from Finance on May 15, 2013. Although these loans are considered enforceable obligations, the loan repayments are subject to the formula outlined in HSC section 34191.4 (b) (2) which limits repayment amounts in each fiscal year to one-half of the increase between the ROPS residual amounts distributed to the taxing entities in that fiscal year and the ROPS residual amounts distributed to the taxing entities in the 2012-13 base year. RI, November 8, 2013 Page 2 iiiiiii III IIIIIlI111 iiiiiiiiiii III 111111111 ilj�l I 1111liIIII cc: Mr. Brian Saeki, Director of Community Development, City of Downey Ms. Kristina Burns, Manager, Los Angeles County Department of Auditor-Controller California State Controller's Office