HomeMy WebLinkAbout03. Adopt Reso Approving ROPS 16-17RESOLUTION APPROVING •` FOR THE PERIOD OF
JULY 1, 2016 THROUGH r
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That the Oversight Board approve BOPS 16 -17 and adopt the following Resolution:
RESOLUTION OF OVERSIGHT :•A-r TO THE DOWNEY
SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULE • RIOD OF JULY 1, 2016 THROUGH
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The Downey Successor Agency is tasked with winding down the redevelopment affairs
of the former Downey Community Development Commission (Commission), including
the administrative tasks of preparing the Recognized Obligation Payment Schedules
(ROPS) required under Assembly Bill x1 26.
Pursuant to Health Safety Code Section 34179.7(o)(1), commencing with the BOPS
covering the period from July 1, 2016 to June 30, 2017 and thereafter, agencies are to
submit an oversight board approved annual ROPS, compared to previous bi- annual
RODS. The BOPS must be submitted to the Department of Finance (DOF), the State
Controller, and the Los Angeles County Auditor- Controller by February 1, 2016.
The Successor Agency is requesting approval on $1,649,486 for enforceable obligations
due in the applicable one -year period. Below is a brief description of the debt obligations
listed in the attached RODS 16 -17.
Line Item No. 1, 1997 Tax Allocation Bonds —The RODS includes two debt payments,
in the amount of $488,109 and $144,525 required for the next two scheduled bond
payments due August 2016 and January 2017 respectively. The payment obligation was
established by the Commission in 1997 when it issued $9,925,000 in Refunding Tax
Allocation Bonds to decrease an outstanding balance on its 1990 Bonds and to repay
accrued principal and interest on note obligations to the City of Downey. The current
balance of the Tax Allocation Bonds is $5,640,000.
Line Item Nos. 3 and 4, Development Agreements The BOPS includes $71,743 for
payments which are due on two Development Agreements that were recognized as
enforceable obligations by the California Department of Finance.
RESOLUTION APPROVING ROPE
JANUARY 25, 2016
PAGE 2
• Line Item No. 3, Bob's Big Boy OPA - Under this OPA, a $25,000
payment is due in November 2016. 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 $125,000.
• Line Item No. 4, 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 $46,743. The ROPS includes $46,743 for the
estimated payment which is due in September 2016.
Line Item No. 7, Administrative Costs —The BOPS includes $250,000 for
administrative expenses. Per ABx1 26, the Successor Agency is entitled to receive an
"administrative allowance" of not more than $250,000 per fiscal year from the
Redevelopment Property Tax Trust Funds (RPTTF). In practice, the Successor Agency
is opting to include half of the allowed allocation in each six month ROPE cycle.
These funds will reimburse the Successor_ Agency and City of Downey for expenses
incurred in winding down the business and project functions of the former redevelopment
agency. The funds will offset expense accounts for personnel, legal services, and
consultant service that will be charged under the City of Downey expense account
10 -4 -5910.
The expense categories for the Administrative Allowance are reflected in the following
table:
Line item No. 9, City Loan Agreements`- The BOPS includes a $439,531 request for
a loan payment towards the outstanding principal on City Loan 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 January 2016 is of $1,012,277.
RESOLUTION APPROVING ROPS
JANUARY 25, 2016
PAGE 3
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), which
limits the amount of RPTTF funds available for repayment of loan agreements between
the Successor Agency and the City of Downey.
Line item 21; CALPERS Unfunded Pension Liabilities - The Successor Agency is
responsible for continuing payment to CALPERS for the unfunded pension obligations
for Commission employees in service prior to the dissolution of the redevelopment
agency. Provided within these ROPS is the inclusion of $253,078 payment for the
aforementioned pension obligations.
ABx1 26, Section 34171 (d) (1) (C) provides that payments required in connection with
employee pension payments or pension obligation debt service are enforceable
obligations, with the approval of the Oversight Board and DOF.
Line item 22; Bond Disclosure Report - The Successor Agency is responsible for
complying with reported requirements of the 1997 Tax Allocation Bonds as required by
the Bond Indenture Agreement; Annual Disclosure Reports are required for each year. In
order to maintain compliance with disclosure requirements, Staff has procured
consultant services to generate the required report. The cost to prepare the reports is
projected at $50,000 over the remaining 20 year term of the tax allocation bonds. The
BOPS includes $2,500 for the preparation of the disclosure reports for the FY 16 -17.
FISCAL IMPACT
Approval of BOPS 16 -17 would provide sufficient distribution of RPTTF funding to
enable the Downey Successor Agency to fulfill its obligations under ABx1 26.
Attachments: "A" Resolution with ROPS 16 -17
•- ej exel amp r -• r r
WHEREAS, as a result of the passage of Assembly Billx1 26 from the 2011 -12 First
Extraordinary Session of the California Legislature ( "ABx1 26 "), the redevelopment functions of
the Downey Community Development Commission (CDC) were dissolved on February 1, 2012;
and
WHEREAS, pursuant to Assembly Bill 1484 of the 2011 -12 Legislative Session ( "AB
1484 "), the Successor Agency to the dissolved redevelopment functions of the Downey
Community Development Commission ( "Successor Agency ") is a separate public agency now
charged with winding down the CDC's redevelopment affairs, including making payments due
for enforceable obligations (as defined in the Dissolution Act), and perform obligations required
pursuant to enforceable obligations; and
WHEREAS, pursuant to Senate Bill 107 of the 2015 -16 Legislative Session ( "SB 107"),
an annual Recognized Obligation Payment Schedule ( "ROPS ") process was established to
replace the previous 6 -month cycle, along with other substantive and technical amendments
(ABx1 26, AB 1484, SB 107, and all other enactments relating to Parts 1.8 and 1.85 of Division
24 of the Health and Safety Code are collectively referred to as the "Dissolution Law"); 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 and Safety Code Section 34179; and
WHEREAS, pursuant to Health and Safety Code sections 34177 and 34180, the
Oversight Board must approve a Recognized Obligation Payment Schedule for it to become
established, valid, and operative for the applicable fiscal period under the Dissolution Law.
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, 2016, through June 30, 2017, 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 provision in the Dissolution Law that applies to the approval by
the Oversight Board of the identified ROPS for the identified period.
SECTION 3. The "Secretary or authorized designee is hereby directed to post this
Resolution and the identified BOPS 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"
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
January, 2016.
CHAIR, OVERSIGHT BOARD
ATTEST:
SECRETARY, OVERSIGHT BOARD
STATE OF CALIFORNIA
COUNTY OF
) SS
CITY OF
1,
. 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 January,
201&
AYES:
Board Members'.
NOES:
Board Member:
ABSENT:
Board Member:
ABSTAIN:
Board Member:
• :1 Lelmim:1 • ;4131
OVERSIGHT BOARD RESOLUTION NO.
PAGE 3
EXHIBIT "A
Recognized Obligation Payment Schedule 2016 -2017
Recognized Obligation Payment Schedule (ROPS 16-17) - Summary
Filed for the July 1, 2016 through June 30, 2017 Period
Successor Agency: Downey
County: Los Angeles
Certification of Oversight Board Chairman:
Pursuant to Section 34177 (o) of the Health and Safety code, I
hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named successor
agency.
/s/
Name
Signature
Title
Date
ROPS 16-17
Current Period Requested Funding for Enforceable Obligations (ROPS Detail)
16-17A Total
16-17B Total
Total
Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding
A
Sources (B+C+D):
$ 46,743
$
$ 46,743
B
Bond Proceeds Funding
= -
-
C
Reserve Balance Funding
-
-
D
Other Funding
46,743
46,743
E
Enforceable Obligations Funded with RPTTF Funding (F+G):
$ 1,206,679
$ 396,064
$ 1,602,743
F
Non-Administrative Costs
1,081,679
271,064
1,352,743
G
Administrative Costs
125,000
125,000
250,000
H
Current Period Enforceable Obligations (A+E):
$ 1,263,422
$ 396,064
$ 1,649,486
Certification of Oversight Board Chairman:
Pursuant to Section 34177 (o) of the Health and Safety code, I
hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named successor
agency.
/s/
Name
Signature
Title
Date
Downey Recognized Obligation Payment Schedule (ROPS 16 -17) - Report of Cash Balances
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, 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 CASH BALANCE TIPS SHEET
A
B
C
D
E
F
G
=H
I
Fund Sources
Bond - Proceeds
Reserve Balance
Other
RPTTF
Prior ROPE Prior ROPS
period balances RPTTF
Bonds issued on
and DDR RPTTF distributed as
Rent,
Non -Admin
or before Bonds issued on
balances reserve for future
grants,
and
Cash Balance Information by ROPS Period
12/31/10 or after 01/01/11
retained period(s)
interest, etc.
-Admin
Comments
ROPS 15 -16A Actuals (07101/15 - 12/31/15)
1
Beginning Available Cash Balance (Actual 07101115)
643,250 1,102,795
127,843
19,566
18,850
2
Revenue /Income (Actual 12 /31115)
RPTTF amounts should tie to the ROPS 15 -16A distribution from the
County Auditor - Controller during June 2015
....:19;867
616,138
3
Expenditures for ROPS 15 -16A Enforceable Obligations (Actual
12/31/15)
481,309
4
Retention of Available Cash Balance (Actual 12/31/15)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
5
ROPS 15 -16A RPTTF Balances Remaining
No entry required
6
Ending Actual Available Cash Balance
C to G = (1 + 2 - 3 - 4), H = (1;+ 2 - 3 - 4 - 5)
$ 643,250 $ -
$ 1;102,795 1 $ 127,843
$ 39,433
$ 115,979
ROPS 15 -16B Estimate (01/01116 - 06130116)
7
Beginning Available Cash Balance (Actual 01/01116)
(C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6)
$ 643,250
$ -
$ 1,102,795 $ 127,843
$ 39,433
$ 115,979
8
Revenue /Income (Estimate 06/30/16)
RPTTF amounts should tie to the ROPS 15 -16B distribution from the
County Auditor- Controller during January 2016
397,905
9
Expenditures for ROPS 15 -16B Enforceable Obligations (Estimate
1 06/30116)
531,
10
Retention of Available Cash Balance (Estimate 06/30116)
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)
$ 643,250
$
$ 1,102,795 $ 127,843 1
$ :39,433
$ (17,749)
lowney Recognized Obligation Payment Schedule (ROPS 16-17) - Notes July 1, 2016 through June 30, 2017