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Home My WebLink About06. Adopt Resolution Approving ROPS for July 1 2017 thu June 2018L1 DATE: JANUARY 26, 2017 That the Oversight Board approve ROPS 17 -18 and adopt the following Resolution: RESOLUTION OF OVERSIGHT BOARD TO THE DOWNEY SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE • • i OF 1 17 THRO E P's 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(0)(1), commencing with the ROPS covering the period from July 1, 2017 to June 30, 2018 and thereafter, agencies are to submit an oversight board approved annual ROPS. The ROPS must be submitted to the Department of Finance (DOF), the State Controller, and the Los Angeles County Auditor - Controller by February 1, 2017. The Successor Agency is requesting approval on $1,453,482 for enforceable obligations due in the applicable one -year period. Below is a brief description of the debt obligations listed in the attached ROPS 17 -18. Line Item No. 1, 1997 Tax Allocation Bonds— The RODS includes two debt payments, in the amount of $494,525 and $135,556 required for the next two scheduled bond payments due August 2017 and January 2018 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 $5,290,000. Line Item No. 3, Bob's Big Boy Owner Participation Agreement (OPA) —The BOPS includes $25,000 for a payment due in November 2017 to JKBBD Inc. that was recognized as an enforceable obligation by the California Department of Finance. In 2008, the CDC entered into an OPA with JKBBD Inc. to establish a Bob's Big Boy restaurant franchise at the former Harvey Broilers location. Under this OPA, an annual RESOLUTION APPROVING ROPS JANUARY 26, 2017 PAGE 2 payment of $25,000 will be paid out over the next three years. The current unpaid obligation balance is $75,000. Line Item No. 7, Administrative Costs - The BOPS includes $250,000 for administrative expenses. Per AB x1 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). 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. In practice, the Successor Agency is opting to include half of the allowed allocation in each six month ROPS cycle. The expense categories for the Administrative Allowance are reflected in the following table: Line Item No. 9, City Loan Agreements — The ROPS includes a $280,323 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 2017 is of $944,729. 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 CALIPERS 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. RESOLUTION APPROVING ROPS JANUARY 26, 2017 PAGE '3 AB x1 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 ROPS includes $15,000 for the preparation of the disclosure reports for FY 17 -18. Approval of BOPS 17 -18 would provide sufficient distribution of RPTTF funding to enable the Downey Successor Agency to fulfill its obligations under AB x1 26. Attachments: "A" — Resolution with ROPS 17 -18 •' • r t 1 MU • 1 1 WHEREAS, as a result of the passage of Assembly Bill X1 26 from the 2011 -12 First Extraordinary Session of the California Legislature ( "AB X1 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 ( "RODS ") process was established to replace the previous 6 -month cycle, along with other substantive and technical amendments (AB X1 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 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 BOPS for it to become established, valid, and operative for the applicable fiscal period under the Dissolution Law. NOWo THEREFORE, BE IT RESOLVED by the Oversight Board as follows. SECTION 1. The foregoing Recitals are true and correct and are incorporated herein. SECTION 2. The RODS covering the period of July 1, 2017, through June 30, 2018, attached hereto and incorporated herein by reference as Exhibit `K, 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 BOPS for the identified period. SECTION 3. The Secretary or authorized designee is hereby directed to post this Resolution and the identified RODS for the identified periods on the Successor Agency's website, and to provide a copy of the identified BOPS for the identified periods to the State Controller's Office, State Department of Finance, and the County Auditor- Controller. W OTWERSIGA PAGE 2 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 26 °h day of January, 2017. 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 26th of January, 2017. AYES: Board Members: NOES4 Board Member: ABSENT: Board Member: ABSTAIN: Board Member: 01*61 W31 IFTl WALOINA LCJ m 12 a OVERSIGHT BOARD RESOLUTION NO. PAGE 3 EXHIBIT "A Recognized Obligation Payment Schedule 2017 -2018 Recognized Obligation Payment Schedule (ROPS 17 -18) - Summary Filed for the July 1, 2017 through June 30, 2018 Period Successor Agency: Downey County: Los Angeles 17 -18A Total 17 -18B Total F RPTTF G Administrative RPTTF H Current Period Enforceable Obligations (A +E): 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 941,387 262,095 1,203,482 125;000 125,000 250,000 $ 1,066,387 $ 387,095 $ 1,453,482 Title Date July 1, 2017 through June 30, 2018 (Robbirt Amounts in Whole 0000M A B C D E F G H i J K L M N O P O R S T u V W 17 =78A (Jui -December Fund Sources- Fund Sources Contract/Agreement ConlracUAgreemenl Total Outstanding ROPS 17 -18 17 -18A 17 -18B Item # -. Project Name /Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project tionlPro! ect Scope Project Area Debt or Obligation Retired Total Bond s'roceads 9$g serwq EelagtiGe Other Funds RPTTF Admon RPTTF Total Bond Proceeds RPStrrve BnPa•:rrcm Other Funds RPTTF Admen RPTTF : Total .< 7b N 1 g 8 71 N Pw 81 N ;;$ .. B N ,$ $� Pursuant to Healthand,Safety Code section 34177 1 Redevelo ment Pro ert Tax Trust Fund RPTTF ma' be listed as a source of payment on the ROPS but only to the extent no other fundin _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 R C D E F G H Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS 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 ROPE Period 12/31/10 or after 01/01/11 retained period(s) interest, etc. Admin Comments ROPS 15 -16B Actuals (01101/16 - 06/30/16) 1 Beginning Available Cash Balance (Actual 01/01/16) 643,250 1,102,795 127,843 39,433 115,979 2 Revenue /Income (Actual 06/30/16) RPTTF amounts should tie to the ROPS 15 -16B distribution from the County Auditor - Controller during January 2016 397,905 3 Expenditures for ROPS 15 -16B Enforceable Obligations (Actual 06/30/16) 404,648 4 Retention of Available Cash Balance (Actual 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 15 -16B RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance C'toG =(1 +2- 3- 4),'H =(1 +2- 3 -4 -5) $ 643,250' $ - $ 1,102,795 $ 127,843 $ 39,433 $ s 109,236