HomeMy WebLinkAbout07 - CC-8 - Adopt Resolution Approving Recognized Ob - 1/19/20211
SUCCESSOR AGENCY TO THE
COSTA MESA REDEVELOPMENT
AGENCY AGENDA REPORT
MEETING DATE: JANUARY 19, 2021 ITEM NUMBER: CC-8
SUBJECT: ADOPT RESOLUTION APPROVING RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR FY 2021-22 FOR THE PERIOD OF JULY 1,
2021 TO JUNE 30, 2022
DATE: JANUARY 8, 2021
FROM: FINANCE DEPARTMENT
PRESENTATION BY: JENNIFER KING, CPA, ASSISTANT FINANCE DIRECTOR
FOR FURTHER INFORMATION
CONTACT:
JENNIFER KING, CPA, ASSISTANT FINANCE
DIRECTOR, (714) 754-5219
RECOMMENDED ACTION
Adopt Successor Agency Resolution No. 21-XX approving the Recognized Obligation
Payment Schedule for Fiscal Year 2021-22 for the period of July 1, 2021 to June 30,
2022, subject to submittal to and review by the Orange Countywide Oversight Board
(Oversight Board) and then the State of California, Department of Finance (DOF).
Further, the Finance Director, or her authorized designee, in consultation with legal
counsel, shall be authorized to request and complete meet and confer session(s), if any,
with the DOF and authorized to make augmentations, modifications, additions or revisions
as may be necessary or directed by DOF.
BACKGROUND AND DISCUSSION
As of February 1, 2012, all California redevelopment agencies were dissolved. The
Successor Agency to the Costa Mesa Redevelopment Agency (Successor Agency)
succeeded to the Costa Mesa Redevelopment Agency (former Agency). The Successor
Agency is performing its functions under Division 24, Parts 1.8 and 1.85 of the Health and
Safety Code, as amended by Assembly Bill 1484 and other subsequent legislation
(together as amended, the “Dissolution Law”), to administer the enforceable obligations
and otherwise unwind the affairs of the former Agency, all subject to review and approval
by the seven-member countywide oversight board.
One of the enforceable obligations is the $9.3 million loan from the City’s General Fund
to the former Agency. Upon dissolution, the State Department of Finance (DOF) initially
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disapproved the loan. Staff and the Agency’s legal counsel met with DOF numerous times
and provided extensive documentation showing that the loan was originally established
within two years of the former Agency’s formation and evidenced through a series of
promissory notes. In May 2014, DOF approved the reinstatement of the Successor
Agency’s loan and allowed the annual loan repayment be placed on Recognized
Obligation Payment Schedules (ROPS), subject to annual approval by the oversight
board and DOF.
At previous meetings of the Successor Agency, under the Dissolution Law, all prior ROPS
were approved and thereafter submitted to the local oversight board, then to the DOF,
and ultimately approved with modifications. As of July 1, 2018; the Orange Countywide
Oversight Board serves as the oversight board to the 25 successor agencies in Orange
County. This agenda report is for the annual ROPS for FY 2021-22 (Attachment 1).
Under Section 34171(h) of the California Health and Safety Code, as amended, the
ROPS is “the document setting forth the minimum payment amounts and due dates of
payments required by enforceable obligations for each fiscal year as provided in
subdivision (o) of Section 34177.”
Under the dates required in the Dissolution Law, the Successor Agency is required to
consider and adopt the ROPS for the period of July 1, 2021 to June 30, 2022, and submit
such approved ROPS to the DOF on or before February 1, 2021. Section 34177(l) of
Part 1.85, as amended, requires the Successor Agency to take actions with regard to
each ROPS as follows:
“(l) (1) … For each recognized obligation, the Recognized Obligation Payment
Schedule shall identify one or more of the following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the extent no
other funding source is available or when payment from property tax
revenues is required by an enforceable obligation or by the provisions of
this part.
(F) Other revenue sources, including rents, concessions, asset sale
proceeds, interest earnings, and any other revenues derived from the
former redevelopment agency, as approved by the oversight board in
accordance with this part.
(o) (1) Commencing with the Recognized Obligation Payment Schedule covering
the period from July 1, 2016, to June 30, 2017, inclusive, and for each period
from July 1 to June 30, inclusive, thereafter, a successor agency shall submit an
oversight board-approved Recognized Obligation Payment Schedule to the
department and to the county auditor-controller no later than February 1, 2016,
and each February 1 thereafter…”
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The ROPS FY 2021-22 and the Successor Agency resolution (Attachment 2) are included
with this agenda report. ROPS FY 2021-22 sets forth Enforceable Obligations
comparable to those listed in ROPS FY 2020-21. Currently, the only enforcement
obligation is the annual payment on the promissory note for the reinstated City/Former
Agency loan under Section 34191.4, which annual payment has been listed and approved
by the DOF on the ROPS since DOF approved its reinstatement in 2014. Staff is available
to explain ROPS FY 2021-22 and answer any questions about this ROPS and related
Successor Agency matters.
The timing for DOF’s review of each annual ROPS is set forth in subsection (o) of Section
34177 which provides:
“The department shall make its determination of the enforceable obligations and
the amounts and funding sources of the enforceable obligations no later than April
15, 2016, and each April 15 thereafter. Within five business days of the
department’s determination, a successor agency may request additional review by
the department and an opportunity to meet and confer on disputed items, except
for those items which are the subject of litigation disputing the department’s
previous or related determination. An untimely submittal of a Recognized
Obligation Payment Schedule may result in a meet and confer period of less than
30 days. The department shall notify the successor agency and the county auditor-
controller as to the outcome of its review at least 15 days before the date of the
first property tax distribution for that period.
Staff recommends that the Successor Agency adopt the attached Resolution approving
ROPS FY 2021-22 and authorizing the Finance Director or her authorized designee to
transmit to the Oversight Board for its review and approval, and under the Dissolution
Law, concurrently to send a copy of ROPS FY 2021-22 to the DOF, the Orange County
Auditor-Controller, the Orange County Administrative Officer, and State Controller’s
Office as required.
Further, the Finance Director or her authorized designee, in consultation with legal
counsel, shall be authorized to request and complete meet and confer session(s) with the
DOF and authorized to make augmentations, modifications, additions or revisions as may
be necessary or directed by DOF, which changes, if any, will be reported back to the
Successor Agency and the Oversight Board.
ALTERNATIVES CONSIDERED
The Successor Agency may choose to reject all or part of the ROPS FY 2021-22 as
presented. However, an approved ROPS must be transmitted to the County Oversight
Board, ultimately the DOF, by February 1, 2021 for continuing funding.
FISCAL REVIEW
If the DOF approves the ROPS FY 2021-22 as submitted, the Successor Agency will
receive $1,905,703 for the period July 1, 2021 to June 30, 2022 to pay the Successor
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Agency’s enforceable obligations. This represents a similar level of funding received in
the current fiscal year for these obligations.
LEGAL REVIEW
The City Attorney has reviewed and approved this report as to form.
CITY COUNCIL GOALS & PRIORITIES:
This item is administrative in nature.
CONCLUSION
Staff recommends adoption of the attached resolution approving the Successor Agency’s
ROPS FY 2021-22 for the period July 1, 2021 to June 30, 2022.
________________________________ ________________________________
CAROL MOLINA JENNIFER KING, CPA
Finance Director Assistant Finance Director
________________________________
KIMBERLY HALL BARLOW
City Attorney
ATTACHMENTS: 1.
2.
Recognized Obligations Payment Schedule 21-22 A-B for the
Annual Fiscal Period July 1, 2021 to June 30, 2022
Successor Agency Resolution Approving ROPS FY 2021-22
Recognized Obligation Payment Schedule (ROPS 21-22) - Summary
Filed for the July 1, 2021 through June 30, 2022 Period
Successor Agency: Costa Mesa
County: Orange
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
21-22A Total
(July -
December)
21-22B Total
(January -
June)
ROPS 21-22
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ -
B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 1,905,703 $ - $ 1,905,703
F RPTTF 1,905,703 - 1,905,703
G Administrative RPTTF - - -
H Current Period Enforceable Obligations (A+E) $ 1,905,703 $ - $ 1,905,703
Certification of Oversight Board Chairman:
Name Title
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/
Signature Date
Costa Mesa
Recognized Obligation Payment Schedule (ROPS 21-22) - ROPS Detail
July 1, 2021 through June 30, 2022
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
21-22
Total
ROPS 21-22A (Jul - Dec)
21-22A
Total
ROPS 21-22B (Jan - Jun)
21-22B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
$5,297,468 $1,905,703 $- $- $- $1,905,703 $- $1,905,703 $- $- $- $- $- $-
6 Promissory
Note Payable
City/County
Loan (Prior
06/28/11),
Cash
exchange
09/30/
1971
06/30/2024 City of
Costa
Mesa
Original
Loan to
establish
RDA
Downtown 5,297,468 N $1,905,703 - - - 1,905,703 - $1,905,703 - - - - - $-
37 Administrative
Cost
Admin
Costs
01/01/
2012
06/30/2024 Not
provided
Not
provided
Downtown - N $- - - - - - $- - - - - - $-
Costa Mesa
Recognized Obligation Payment Schedule (ROPS 21-22) - Report of Cash Balances
July 1, 2018 through June 30, 2019
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), 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.
A B C D E F G H
ROPS 18-19 Cash Balances
(07/01/18 - 06/30/19)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/18)
RPTTF amount should exclude "A" period distribution
amount.
8,222 519 13,221 Prior ROPS excess cash: $621 from 15-16A;
$1050 from 15-16B; $1,050 from 16-17B;
$7,500 from 17-18A; $3,000 from 17-18A.
2 Revenue/Income (Actual 06/30/19)
RPTTF amount should tie to the ROPS 18-19 total
distribution from the County Auditor-Controller
1,211,203 AB1484 requires 20% ($240,590.58) of loan
repayment ($1,202,953) to be transferred to
Low and Moderate Income Housing Asset
Fund per HSC 34191.4(s)(2)(c).
3 Expenditures for ROPS 18-19 Enforceable Obligations
(Actual 06/30/19)
1,208,203 Successor Agency's FY 18/19 total
expenditures and loan repayments.
4 Retention of Available Cash Balance (Actual 06/30/19)
RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5 ROPS 18-19 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 18-19 PPA
form submitted to the CAC
No entry required
6 Ending Actual Available Cash Balance (06/30/19)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$8,222 $- $- $519 $16,221 Prior ROPS excess cash: $621 from
15-16A; $1050 from 15-16B; $1,050 from
Pursuant to Health and Safety Code section 34177 (l), 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.
A B C D E F G H
ROPS 18-19 Cash Balances
(07/01/18 - 06/30/19)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
16-17B; $7,500 from 17-18A; $3,000 from
17-18A; $3,000 from 18-19A.
Costa Mesa
Recognized Obligation Payment Schedule (ROPS 21-22) - Notes
July 1, 2021 through June 30, 2022
Item # Notes/Comments
6
37
Attachment 2
SUCCESSOR AGENCY RESOLUTION NO. 21-XX
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COSTA MESA
REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE FY 2021-22 FOR THE ANNUAL
FISCAL PERIOD OF JULY 1, 2021 TO JUNE 30, 2022, SUBJECT TO
SUBMITTAL TO, AND REVIEW BY THE ORANGE COUNTYWIDE
OVERSIGHT BOARD AND THE STATE OF CALIFORNIA,
DEPARTMENT OF FINANCE UNDER CALIFORNIA HEALTH AND
SAFETY CODE, DIVISION 24, PART 1.85; AND, AUTHORIZING THE
POSTING AND TRANSMITTAL THEREOF
WHEREAS, the former Costa Mesa Redevelopment Agency (“Former Agency”)
was established as a redevelopment agency which was previously organized and existing
under the California Community Redevelopment Law, Health and Safety Code Section
33000, et seq., and previously authorized to transact business and exercise powers of a
redevelopment agency pursuant to action of the City Council of the City of Costa Mesa
(“City”); and
WHEREAS, Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the
California Health and Safety Code, which caused the dissolution of all redevelopment
agencies and winding down of the affairs of former agencies, including as such laws were
amended by Assembly Bill 1484 and by other subsequent legislation (together, as
amended, the “Dissolution Law”); and
WHEREAS, as of February 1, 2012 the Former Agency was dissolved under the
Dissolution Law, and as a separate public entity, the Successor Agency to the Costa
Mesa Redevelopment Agency (“Successor Agency”) administers the enforceable
obligations of the former Agency and otherwise dissolves the former Agency’s affairs, all
subject to the review and approval by a seven-member oversight board; and
WHEREAS, under Section 34179(j) of the Dissolution Law, in every California
county there shall be one oversight board that is staffed by the county’s auditor-controller;
and
WHEREAS, the applicable consolidated oversight board overseeing this
Successor Agency is called the Orange Countywide Oversight Board (“Oversight Board”);
and
WHEREAS, every oversight board, both the prior local oversight board and the
Oversight Board, has fiduciary responsibilities to the holders of enforceable obligations
and to the taxing entities that benefit from distributions of property tax and other revenues
pursuant to Section 34188 of the Dissolution Law; and
WHEREAS, Sections 34177(m), 34177(o) and 34179 provide that each ROPS is
submitted to, reviewed and approved by the Successor Agency and then reviewed and
approved by the Oversight Board before final review and approval by the State of
California, Department of Finance (“DOF”); and
WHEREAS, Section 34177(o) of the Dissolution Law requires that the annual
ROPS for the 21-22 A-B fiscal period of July 1, 2021 to June 30, 2022 (“ROPS FY 2021-
22”) shall be submitted to the DOF by the Successor Agency, after approval by the
Oversight Board, no later than February 1, 2021; and
WHEREAS, the ROPS FY 2021-22, in the form required by DOF, is attached as
Exhibit A and fully incorporated by this reference; and
WHEREAS, the Successor Agency has reviewed the ROPS FY 2021-22 and
desires to approve this schedule and to authorize and direct the Successor Agency staff
to transmit the ROPS FY 2021-22 to the Oversight Board, with copies to the Orange
County Administrative Officer (“CAO”), Orange County Auditor-Controller (“CAC”), the
State Controller’s Office (“SCO”) and DOF as required by Dissolution Law; and
WHEREAS, the Successor Agency shall post the ROPS FY 2021-22 on the
City/Successor Agency website www.costamesaca.gov.
NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY TO
THE COSTA MESA REDEVELOPMENT AGENCY:
Section 1. The foregoing recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
Section 2. The Successor Agency approves ROPS FY 2021-22 submitted herewith as
Attachment 1, under the requirements of the Dissolution Law; provided however, that the
ROPS FY 2021-22 is approved subject to the condition such ROPS FY 2021-22 is to be
transmitted to the Oversight Board for review and approval and a copy of such ROPS FY
2021-22 shall concurrently be sent to the CAO, CAC, SCO, and DOF. Further, the
Finance Director (and her authorized designee), in consultation with legal counsel, shall
be authorized to request and complete meet and confer session(s), if any, with the DOF
and authorized to make augmentations, modifications, additions or revisions as may be
necessary or directed by DOF.
Section 3. After approval by the Oversight Board, the Successor Agency authorizes
transmittal of the approved ROPS FY 2021-22 again to the CAC, SCO and DOF.
Section 4. The Finance Director of the Successor Agency or her authorized designee
is directed to post this Resolution, including the ROPS FY 2021-22, on the City/Successor
Agency website (www.costamesaca.gov) under the Dissolution Law.
Section 5. The Secretary of the Successor Agency shall certify to the adoption of this
Resolution.
APPROVED AND ADOPTED this 19th day of January 2021.
Katrina Foley, Chair
Successor Agency to the Costa Mesa
Redevelopment Agency
(SEAL)
ATTEST:
Brenda Green, Secretary
Successor Agency to the Costa Mesa Redevelopment Agency
APPROVED AS TO FORM
_____________________________
Kimberly Hall Barlow,
Successor Agency Counsel
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF COSTA MESA )
I, Brenda Green, Secretary of the Successor Agency to the Costa Mesa
Redevelopment Agency, hereby certify that the foregoing resolution was duly adopted by
the Successor Agency at a regular meeting held on the 19th day of January 2021, and
that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Brenda Green, Secretary
Successor Agency to the Costa Mesa
Redevelopment Agency
(SEAL)
EXHIBIT A
to Successor Agency Resolution No. 21-xx
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FY 2021-22
FOR PERIOD JULY 1, 2021 TO JUNE 30, 2022