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Home My WebLink About80A - RESO APPROV OBLIG PAYMENT SCHEDREQUEST FOR COUNCIL / SUCCESSOR AGENCY ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 4, 2018 TITLE: ADOPT RESOLUTION APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 1, 2019 THROUGH JUNE 30, 2019 AND APPROVE APPROPRIATION ADJUSTMENT (NON -GENERAL FUND) (STRATEGIC PLAN NO. 4, 1) RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing $250,000 in the Housing Successor Agency Fund prior year carry forward account (no. 60718002-50001) and appropriating same to the expenditure account (no. 60718830-66220). SUCCESSOR AGENCY ACTION Adopt a resolution approving the Amended Recognized Obligation Payment Schedule for the period of January 1, 2019 through June 30, 2019 pursuant to Part 1.85 of Division 24 of the California Health & Safety Code. DISCUSSION Pursuant to Part 1.85 of Division 24 of the California Health & Safety Code ("Dissolution Act"), the City Council on January 9, 2012, elected for the City to act as the "Successor Agency' to the dissolved Community Redevelopment Agency ("Agency'). On February 1, 2012, in accordance with the Dissolution Act and the California Supreme Court's decision in California Redevelopment Association v. Matosantos, Case No. S194861, the Agency was dissolved and the City began to serve as the "Successor Agency." The City Council serves as the governing body of the Successor Agency under the Dissolution Act as amended by AB 1484, AB 471, and SB 107, to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs. 80A-1 Resolution and Appropriation Adjustment — Amended ROPS 18-19B September 4, 2018 Page 2 The annual Recognized Obligation Payment Schedule ("ROPS") for the July 1, 2018 — June 30, 2019 period (18-19) was submitted to the California State Department of Finance ("DOF") by the statutory deadline of February 1, 2018, with the required approval of the local Oversight Board. DOF issued its final determination letter regarding ROPS 18-19 on May 17, 2018 and the County Auditor -Controller distributed funds for the "A" period (July 1, 2018 — December 31, 2018) from the Redevelopment Property Tax Trust Fund ("RPTTF") on May 29, 2018. During the preparation and submission of the ROPS 18-19, it was anticipated that an outstanding obligation pursuant to a disposition and development agreement with an affordable housing developer would be completed by the end of the 17-18 period (June 30, 2018). Therefore, line item 70 of the ROPS regarding this obligation was "retired" for the ROPS 18-19 period. Due to various delays, the outstanding obligation was not completed nor paid by the June 30th date and the obligation remains unpaid. The developer is expected to complete the final steps necessary to qualify for the total $250,000 fee during the "A" period of the BOPS. This fee is the $50,000 developer fee per affordable unit for the last five units of the development project. DOF has issued an amended ROPS 18-19B template for successor agencies if amendments are necessary for payment of approved enforceable obligations during the second half of the ROPS period, pursuant to Health and Safety Code section 34177 (o)(1)(E). DOF has reactivated line item 70 on the ROPS per staffs request and directed Successor Agency staff to amend it to enable the payment of the obligation during the "B" period (January 1, 2019 to June 30, 2019). The developer has agreed to receive payment during the month of January 2019. The new Orange Countywide Oversight Board (OCOB) was established effective July 1, 2018 per SB 107, upon dissolution of each successor agency's local oversight board. The Successor Agency's resolution, along with the amended ROPS 18-19B, will be submitted for OCOB approval at its next regular meeting scheduled for September 18, 2018. Following action by the OCOB, the ROPS will be submitted to DOF, County Auditor -Controller, and the State Controller's Office as required by the Dissolution Act by the October 1, 2018 deadline. The ROPS will also be posted on the Successor Agency's website. The appropriation adjustment is necessary to carry over the funds from prior year for this obligation as the expenditure was budgeted in FY 17/18. DOF's guidance specifies that their determination will be issued at least 15 days before the date of the property tax distribution, which will be mid-December. In anticipation of DOF's approval, staff requests approval of the appropriation adjustment by City Council to expedite the payment in early January 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial environment). 80A-2 Resolution and Appropriation Adjustment — Amended ROPS 18-19B September 4, 2018 Page 3 FISCAL IMPACT Upon approval of the appropriation adjustment, funds will be carried over from prior year in the amount of $250,000 and will be available in the Housing Successor Agency, Improvements Other Than Building account no. (60718830-66220) for expenditure during FY 18/19. The actual payment will be pending DOF's final approval of the amended ROPS 18-19B. Aum G Steven A. Mendoza a� Executive Director Community Development Agency SM/sg AS TO FUNDS AND ACCOUNTS: Assistant Director Finance and Management Services Agency Exhibit: 1. Resolution with Amended ROPS 18-19B • I . EXHIBIT 1 SUCCESSOR AGENCY RESOLUTION NO. 2018- A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE 18-19B FOR THE PERIOD OF JANUARY 1, 2019 TO JUNE 30, 2019 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(o)(1)(E), AND PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE ("DISSOLUTION ACT") BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, conclusively finds, determines and declares as follows: A. On January 9, 2012, pursuant to section 34173 of the California Health & Safety Code, the City of Santa Ana ("City") elected to serve as the Successor Agency for the dissolved Community Redevelopment Agency ("Agency') of the City of Santa Ana and selected the Housing Authority of the City of Santa Ana to act as "Successor Housing Agency." B. The City Council selves as the governing body of the Successor Agency under the Dissolution Act, as amended by AB 1484, AB 471, and SB 107, to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs. C. SB 107 revised the timeline for the preparation of the required Recognized Obligation Payment Schedule (ROPS) from each six-month period to a one-year period beginning July 1, 2016. D. The Successor Agency received and filed the ROPS for the 18-19 period, upon review and approval by the Oversight Board on January 29, 2018 and submitted it to the Department of Finance (DOF) and other required entities by the February 1, 2018 deadline. DOF issued its preliminary decision letter regarding ROPS 18-19 on April 13, 2018, and then subsequently issued its final determination letter on May 17, 2018 after a Meet and Confer session requested by Santa Ana. E. Section 34177(o)(1)(E) authorizes that "[o]nce per period, and no later than October 1, a successor agency may submit one amendment to the [ROPS] approved by the department pursuant to this subdivision, if the oversight board makes a finding that a revision is necessary for the payment of approved enforceable obligations during the second one-half of the [ROPS] period, which shall be defined as January 1 to June 30, inclusive. A successor agency may only amend the amount requested for payment of approved enforceable obligations. The revised [ROPS] shall be approved by the oversight board and submitted to the department by electronic means in a manner of the department's choosing. The department shall notify the successor agency and the county Resoldon No. 2018- Pagel of 3 80A-5 auditor -controller as to the outcome of the department's review at least 15 days before the date of the property tax distribution." F. During the preparation and submission of the ROPS 18-19, it was anticipated that an outstanding obligation pursuant to a disposition and development agreement with an affordable housing developer would be completed by the end of the ROPS 17-18 period (June 30, 2018), and hence, line item 70 regarding this obligation was "retired" for the ROPS 18-19 period. Due to various delays, the outstanding obligation was not completed nor paid by the June 30, 2018 date and the obligation remains unpaid. G. DOF added line item 70 back into the Amended ROPS 18-19B template for Santa Ana to amend the ROPS for the January 1, 2019 through June 30, 2019 "B" fiscal period to enable the Successor Agency to fulfill its payment obligation in the amount of $250,000. H. Successor Agency staff has prepared the Amended ROPS 18-19B with modifications to the "B" fiscal period of January 1, 2019 to June 30, 2019 as to line item 70. Section 2. The Successor Agency approves the Amended Recognized Obligation Payment Schedule 18-19B, attached hereto as Exhibit A and incorporated herein by this reference, determines that the amendment is necessary to pay an enforceable obligation in the ROPS 18-19B period, and authorizes the submission to the County of Orange and Orange Countywide Oversight Board for review and approval. Section 3. Pursuaritto the Dissolution Act, the Successor Agency fu rthe r authorizes the transmittal of the Amended ROPS 18-19B, upon subsequent Orange Countywide Oversight Board approval, to DOF with copies to the County Administrative Officer, the County Auditor - Controller, and the State Controller's Office. Section 4. The City Manager, or his/her designee ("City Manager"), is directed to post on the City's website the Amended ROPS 18-19B in the manner required by law. Section 5. The City Manager and/or the Executive Director of Community Development, or their respective designees, as delegated officials of the City acting as Successor Agency, are authorized to make or accept any augmentation, modification, additions, or revisions to the ROPS as may be necessary and appropriate in their reasonable discretion, based on review or communications from the Orange Countywide Oversight Board, the State Department of Finance or County of Orange. Section 6. This Resolution shall take effect immediately upon its adoption by the Successor Agency, and the Clerk of the Council shall attest to and certify the vote adopting of this Resolution. Resolution No. 2018 - Page 2 of 3 • RM ADOPTED this day of APPROVED AS TO FORM: Sonia R. CAvalho, City Attorney By: ' Q Ryan AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: 2018. Miguel A. Pulido Mayor CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018- to be the original resolution adopted by the City Council acting as the Successor Agency on September_, 2018. Date: Maria D. Huizar, Clerk of the Council 80A-7 Resolutlon No. 2018 - Page 3 7f-3- 12 d R In W n M W N r N O n R R M 0 r r W �almlR N E m z N EXHIBIT A c = + Q LL y = C o i x m 0 O m a ! c a. a LL ac dW O O O i d m 2 C p i LL c O d IL 1 m K O Q-' Q ` I U m U 0 W LL (7 2 80A-8 N E m z N EXHIBIT A OR Foorlymul