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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 SA -4-1 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 SA -4-2 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 SA -4-3 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 SA -4-5 Resolution No. 2019 - Page 3 of 3 min SA -4-6 W t7 N W m N N N N q C N dl O N O E N N M N m LL a v N 0 .. 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