HomeMy WebLinkAboutSA-4 - SA - RESO - ROPS 7-1-19 TO 6-30-20�Q`SdT v\
REQUEST •
SUCCESSOR AGENCY
� y
ACTION • `•.1 _—
JFU
MEETING DATE:
JANUARY 15, 2019
TITLE:
ADOPT A RESOLUTION APPROVING THE
RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE PERIOD OF JULY 1,
2019 THROUGH JUNE 30, 2020
{STRATEGIC PLAN NO. 4, 1}
r6o
TY MANAGER
RECOMMENDED ACTION
CLERK OF THE COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Implementing Resolution
❑ Other
CONTINUED TO
FILE NUMBER
Adopt a resolution approving the Recognized Obligation Payment Schedule for the period of July
1, 2019 through June 30, 2020 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.
Effective July 1, 2018, the local Oversight Board to the Successor Agency was dissolved and the
new Orange Countywide Oversight Board (OCOB) was established. The OCOB now has
oversight with respect to the Dissolution process, including review and approval of the
Recognized Obligation Payment Schedule (ROPS).
The ROPS includes the administrative cost allowance as required under Health and Safety Code
Section 34177 Q) through (k), and is presented in the format designed by the Department of
Finance (DOF).
On November 8, 2018, the Successor Agency issued its Tax Allocation Refunding Bonds, Series
2018A and 2018B ("2018 Bonds") in the amount of $72,310,000 to refinance the former Agency's
Merged Project Area, Tax Allocation Bonds, 2011 Series A Bonds ("2011 Bonds") and the South
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ROPS 19-20
January 15, 2019
Page 2
Main Street Redevelopment Project, Tax Allocation Bonds 2003 Series A and Series B Bonds
("2003 Bonds") upon approval by DOR This refinancing action will result in the retirement of the
various obligations associated with the 2003 and 2011 Bonds on the ROPS 19-20; specifically
line items 1 through 12. Additionally, new line items 160 through 167 have been added for the
debt service payments, trustee fees, continuing disclosure fees, and arbitrage rebate analysis
fees associated with the new 2018 Bonds.
Upon Successor Agency approval, the ROPS will be submitted to the Orange Countywide
Oversight Board for approval at its January 29, 2019 meeting. Upon OCOB approval, the ROPS
will be submitted to the DOF, County, and other appropriate entities as required by the
Dissolution Act by the February 1, 2019 deadline. The ROPS will also posted on the Successor
Agency's website.
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).
FISCAL IMPACT
The Successor Agency is limited to making only payments listed on the approved ROPS for each
annual period. Administrative expenses are capped at three percent of the actual property tax
distributed for the ROPS in the preceding fiscal year or the minimum of $250,000 per year. The
Successor Agency is anticipated to be approved for $289,698 in administrative cost allowance for
FY 19/20.
Funds will be budgeted for FY 19/20 in the Redevelopment Obligation Retirement Funds
(account no. 67118021 -various, 67018843 -various, and 67018850 -various) upon approval of the
ROPS by DOF.
APPROVED AS TO FUNDS AND ACCOUNTS:
Steven A. Mendoza Kathryn Downs, CPA
Executive Director Executive Director Do
Community Development Agency Finance and Management Services Agency
SM/SG
Exhibit: 1. Resolution
A. Recognized Obligation Payment Schedule 19-20
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EXHIBIT 1
SUCCESSOR AGENCY RESOLUTION NO. 2019-
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA APPROVING THE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE 19-20 FOR THE PERIOD OF JULY 1, 2019 TO JUNE 30,
2020 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 (o),
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 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.
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 annual ROPS includes the administrative cost allowance as required
under Health and Safety Code Section 34177 0) through (k).
E. The annual ROPS for the July 1, 2019 through June 30, 2020 period must
be approved by the Countywide Oversight Board and submitted to the County Auditor -
Controller, State Controller's Office, and to the State Department of Finance (DOF) no later
than February 1, 2019.
Section 2. The Successor Agency approves the Recognized Obligation Payment
Schedule 19-20, attached hereto as Exhibit A and incorporated herein by this reference, and
authorizes the submission to the County of Orange and Countywide Oversight Board for review
and approval.
Section 3. Pursuant to the Dissolution Act, the Successor Agency further authorizes the
transmittal of the ROPS 19-20, upon subsequent Countywide Oversight Board approval, to DOF
Resolution No. 201&_
Page 1 of 3
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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 ROPS 19-20 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 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.
ADOPTED this day of
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Ry1W O. ftbdge
Assistant City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
Resolution No. 2018 -
Page 2 of 3
SA -4-4
2019.
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. 2019- to be the original resolution adopted by the City Council acting as the Successor
Agency on January , 2019.
Date:
Maria D. Huizar, Clerk of the Council
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Resolution No. 2019 -
Page 3 of 3
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