The URL can be used to link to this page

Home My WebLink About07 - - Adoption of Amendments to Agencys Enforc - 1/17/2012REDEVELOPMENT AGENCY AND CITY COUNCIL ITEM NO. V. 1 AGENDA REPORT MEETING DATE: 01.17.12 SUBJECT: ADOPTION OF AMENDMENTS TO THE AGENCY'S ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE DATE: January 12, 2012 FROM: THOMAS R. HATCH, CEO AND AGENCY EXECUTIVE DIRECTOR CONTACT: BOBBY YOUNG, FINANCE & I.T. DIRECTOR / 714-754-5241 RECOMMENDED ACTIONS: Adopt Resolution of the Costa Mesa Redevelopment Agency, City of Costa Mesa, California ("Agency") amending the Enforceable Obligation Payment Schedule ("EOPS") pursuant to Section 34169(g) of the Health & Safety Code and the Initial Recognized Obligation Payment Schedule ("IROPS") pursuant to Section 34169(h) of the Health & Safety Code; and that the City Council, acting as successor agency, by minute order, accept transmittal of the amended Initial Recognized Obligation Payment Schedule from the Agency. DISCUSSION/BACKGROUND: As presented at your January 10, 2012 Joint Agency/City Council meeting the California Supreme Court's decision in California Redevelopment Association, et al., v. Matosantos ("Matosantos") upholds AB X1 26 and causes the dissolution of all California redevelopment agencies, and invalidates AB X1 27 that would have allowed redevelopment agencies to remain in existence if the agency opted in to the "Voluntary Alternative Redevelopment Program" ("Program"). On August 26, 2011, pursuant to Health & Safety Code Section 34169(g), the Agency adopted a resolution approving the Agency's Enforceable Obligation Schedule ("EOPS"). The EOPS is a comprehensive list of all of the Agency's obligations for which tax increment revenue will be allocated to pay in the event that of redevelopment dissolution. Additionally, on September 20, 2011 pursuant to Health & Safety Code Section 34169(h), the Agency adopted a resolution approving an Initial Recognized Obligation Payment Schedule (IROPS) and transmitting the schedule to the City. The IROPS also lists all of the Agency's enforceable obligations to which tax increment revenue will be allocated and describes the sources for all payments to be made by the successor agency for the applicable six-month period (then through December 31, 2011). The EOPS and IROPS adopted in August and September 2011 should now be updated to include payments required to be made in January through June, 2012, and to include certain enforceable obligations that were inadvertently omitted from the original EOPS and IROPS. Pursuant to Health and Safety Code Section 34169(g), the Agency can amend the EOPS from time to time at any public meeting of the Agency. Due to the stay issued by the California Supreme Court when it agreed to consider the constitutionality of AB X1 26 and AB X1 27 in Matosantos, and the Court's opinion, which extended certain deadlines in AB X1 26 by four months, it is now also necessary and appropriate to amend the IROPS to provide for payments required to be made on enforceable obligations from January through June 2012. Although the League of California Cities and the California Redevelopment Agency are working to secure an extension to the February 1, 2012 date provided in the Matosantos decision for the dissolution of all redevelopment agencies (and seeking to revive redevelopment in the state), Agency staff is working towards having all AB X1 26 requirements met by the February 1, 2012 deadline currently set forth in the Matosantos decision. The attached Agency resolution adopts an amendment to the Enforceable Obligation Schedule and an amendment to the Initial Recognized Obligation Payment Schedule. CONCLUSION: Staff recommends the following: • Agency adopt the attached resolution amending the Enforceable Obligation Payment Schedule and the Initial Recognized Obligation Payment Schedule and transmitting the Initial Recognized Obligation Payment Schedule to the City, as successor agency; and • City Council, acting as successor agency to the Agency, by minute order, accept transmittal of the amended Initial Recognized Obligation Payment Schedule from the Agency. Thomas R. Hatch, Executive Director Muriel Ullman Costa Mesa Redevelopment Agency Neighborhood Improvement Manager Hilda Veturis Management Analyst Attachment 1: Agency Resolution Attachment 2: Amended EOPS Attachment 3: Amended IROPS ATTACHMENT 1 AGENCY RESOLUTION NO. A RESOLUTION OF THE COSTA MESA REDEVELOPMENT AGENCY AMENDING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND THE INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND TRANSMITTING THE INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE TO THE CITY, ACTING AS SUCCESSOR AGENCY WHEREAS, the Costa Mesa Redevelopment Agency, City of Costa Mesa, California ("Agency") was formed to execute and implement the Redevelopment Plan for the Costa Mesa Downtown Project, pursuant to the provisions of the California Community Redevelopment Law, Health & Safety Code Section 33904, et seq. ("CRL"); and WHEREAS, on December 29, 2011, in California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld AB X1 26, which dissolves all of the redevelopment agencies in California, and invalidated AB X1 27, which would have allowed redevelopment agencies to remain in existence if they opted in to the "Voluntary Alternative Redevelopment Program" ("Program"); and WHEREAS, by resolution adopted on August 26, 2011, the Agency adopted an enforceable obligation payment schedule ("EOPS") pursuant to CRL Section 34169(g), added by AB X1 26; and WHEREAS, by resolution adopted on September 24, 2011, the Agency adopted an initial recognized obligation payment schedule ("IROPS") pursuant to CRL Section 34169(h), added by AB X1 26, and submitted such IROPS to the City, as successor agency; and WHEREAS, the Agency now desires to amend the EOPS and the IROPS and to transmit the amended IROPS to the City, as successor agency. NOW, THEREFORE, BE IT RESOLVED BY THE COSTA MESA REDEVELOPMENT AGENCY, CITY OF COSTA MESA, CALIFORNIA: Section 1. The above recitals are true and correct, are a substantive part of this Resolution, and are adopted as the findings of the Agency. Section 2. Pursuant to CRL Section 34169, subdivisions (g) and (h), enacted by AB X1 26, the Agency hereby adopts the amended FOPS submitted herewith as Attachment 2 and the amended IROPS submitted herewith as Attachment 3, which schedules are incorporated herein by this reference. Section 3. The Agency hereby transmits the amended IROPS submitted herewith as Attachment 3, to the City, acting as successor agency to the Agency pursuant to AB X1 26. Section 4. The Agency Executive Director is hereby authorized and directed to post the EOPS on the City/Agency website pursuant to CRL Section 34169(g)(2) and to notify the County Auditor Controller, the State Department of Finance, and the State Controller's Office concerning this Resolution, the amended FOPS, and its online publication. vote: Section 5. The Agency Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this lith day of January 2912 by the following AYES: NOES: ABSTAIN: ABSENT: Chair Costa Mesa Redevelopment Agency ATTEST: Secretary Costa Mesa Redevelopment Agency APPROVED AS TO FORM: Agency Counsel Name of Redevelopment Agency: Costa Mesa Redevelopment Agency Project Area(s) Downtown Project Area ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34167 and 34169 (*) Page 1 of _1_ Pages Project Name / Debt Obligation Payee Description Total Outstanding Debt or Obligation Total Due During Fiscal Year Jan Feb Mar Payments by month Apr May June Total 1 TAB Refunding 2003 Bank of New York Bonds issued for non -housing projects 4,818,000.00 690,362.50 78,087.50 $ 78,087.50 2 Contract for consulting services Bank of New York Fiscal Agent Services 3,000.00 3,000.00 1,198.00 $ 1,198.00 3 Employee Costs Employees of CM RDA Payroll for employees 670,323.00 670,323.00 55,861.00 55,861.00 55,861.00 55,861.00 55,861.00 55,861.00 $ 335,166.00 4 County Property Tax Admin Fee County of Orange Charge for Administering property tax system 40,000.00 40,000.00 20,000.00 $ 20,000.00 5 Contract for consulting services Mayer, Hoffman, McCann Annual Audit Services 11,000.00 11,000.00 2,445.00 $ 2,445.00 6 Promissory Note Payable City of Costa Mesa Original Loan to establish RDA 19,495,569.00 1,299,705.00 $ - 7 Rental Revenue Agreement City of Costa Mesa-CDBG Remittance of rental revenue from CDBG housing proj 123,669.00 123,669.00 123,669.00 $ 123,669.00 8 Loan from CDBG Fund City of Costa Mesa-CDBG Loan from CDBG for housing project 161,613.00 10,204.00 10,204.00 $ 10,204.00 9 1901 Newport Housing Project Fairfield Residential Assistance for low -mod housing project 892,500.00 892,500.00 892,500.00 $ 892,500.00 10 Contract for attorney services Stradling,Yocca,Carlson&Rauth Contract Attorney services for RDA 75,000.00 75,000.00 10,000.00 10,000.00 10,000.00 10,000.00 5,000.00 5,000.00 $ 50,000.00 11 Contract for consulting services Keyser Marston Financial Consulting 60,000.00 60,000.00 14,331.00 10,000.00 5,000.00 5,000.00 5,000.00 1 5,000.00 $ 44,331.00 12 Contract for consulting services Barr & Clark Environmental Environmental review services 15,000.00 15,000.00 15,000.00 $ 15,000.00 13 Contract for monitoring Keyser Marston Monitoring and enforcing existing covenants and obli 15,000.00 15,000.00 15,000.00 $ 15,000.00 14 Davis Field Lighting Project Dream Engineering Design work on Davis Field Project 1,040.00 1,040.00 $ - 15 Davis Field Lighting Project Musco Sports Lighting, LLC Lighting equipment and structures for proj 156,971.00 156,971.00 $ - 16 Davis Field Lighting Project R&M Electrical Contracting Electrical work to install lighting 335,000.00 335,000.00 24,099.74 $ 24,099.74 17 Davis Field Lighting Project Green Product Sales Field restoration materials 25,000.00 25,000.00 25,000.00 $ 25,000.00 18 Davis Field Lighting Project Midori Gardens Inc Testing of field turf as required 8,379.00 8,379.00 $ - 19 $ 20) $ 21 $ 22 $ 23 $ 24 $ 25 $ $ Totals - This Page Totals - Page 2 Totals - Page 3 Totals - Page 4 Totals - Other Obligations Grand total - All Pages $ 26,907,064.00 $ 4,432,153.50 $ $ $ $ $ $ $ $ $ 26,907,064.00 $ 4,432,153.50 $ 80,192.00 $ 99,960.74 $ 173,948.50 $ 90,861.00 $ 65,861.00 $ 1,636,700.24 $ - $ - $ - $ - $ - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 80,192.00 $ 99,960.74 $ 173,948.50 $ 90,861.00 $ 65,861.00 0 $ 1,636,700.24 rhis Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late August. It is valid through 12/31/11. It is the basis for the Preliminary Draft Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency by 9/30/11. (The draft ROPS must be prepared by the Successor Agency by 11130/11.) If an agency adopts a continuation ordinance per ABX1 27, this EOPS will not be valid and there is no need to prepare a ROPS. Name of Redevelopment Agency: Costa Mesa Redevelopment Agency Pagel of _1_ Pages Project Area(s) Downtown Project Area INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE Per AB 26 - Section 34169 (h) Project Name / Debt Obligation Payee Description Total Due During Fiscal Year Payments by period 10/1/11 to 12/31/11 1/1/12 to 6/30/12 Total 1 TAB Refunding 2003 Bank of New York Bonds issued for non -housing projects 690,362.50 612,275.00 78,087.50 $ 690,362.50 2 Contract for consulting services Bank of New York Fiscal Agent Services 3,000.00 1,802.00 1,198.00 $ 3,000.00 3 Employee Costs Employees of CM RDA Payroll for employees 670,323.00 167,583.00 335,166.00 $ 502,749.00 4 County Property Tax Admin Fee County of Orange Charge for Administering property tax system 40,000.00 20,000.00 20,000.00 $ 40,000.00 5 Contract for consulting services Mayer, Hoffman, McCann Annual Audit Services 11,000.00 8,555.00 2,445.00 $ 11,000.00 6 Promissory Note Payable City of Costa Mesa Original Loan to establish RDA 1,299,705.00 1,299,705.00 $ 1,299,705.00 7 Rental Revenue Agreement City of Costa Mesa-CDBG Remittance of rental revenue from CDBG housing proj 123,669.00 123,669.00 $ 123,669.00 8 Loan from CDBG Fund City of Costa Mesa-CDBG Loan from CDBG for housing project 10,204.00 10,204.00 $ 10,204.00 9 1901 Newport Housing Project Fairfield Residential Assistance for low -mod housing project 892,500.00 892,500.00 $ 892,500.00 10 Contract for attorney services Stradling,Yocca,Carlson&Rauth Contract Attorney services for RDA 75,000.00 25,000.00 50,000.00 $ 75,000.00 11 Contract for consulting services Keyser Marston Affordable housing legal review services 60,000.00 15,669.00 44,331.00 $ 60,000.00 12 Contract for consulting services Barr & Clark Environmental Environmental review services 15,000.00 15,000.00 $ 15,000.00 13 Contract for monitoring Keyser Marston Monitoring and enforcing existing covenants and obligations 15,000.00 15,000.00 $ 15,000.00 14 Davis Field Lighting Project Dream Engineering Design work on Davis Field Project 1,040.00 1,040.00 $ 1,040.00 15 Davis Field Lighting Project Musco Sports Lighting, LLC Lighting equipment and structures for proj 156,971.00 156,971.00 $ 156,971.00 16 Davis Field Lighting Project R&M Electrical Contracting Electrical work to install lighting 335,000.00 310,900.26 24,099.74 $ 335,000.00 17 Davis Field Lighting Project Green Product Sales Field restoration materials 25,000.00 25,000.00 $ 25,000.00 18 Davis Field Lighting Project Midori Gardens Inc Testing of field turf as required 8,379.00 8,379.00 $ 8,379.00 19 $ - 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ $ Totals - This Page Totals - Page 2 Totals - Page 3 Totals - Page 4 Totals - Other Obligations Grand total - All Pages $ 4,432,153.50 $ $ $ $ $ 4,432,153.50 $ 2,627,879.26 $ $ $ $ $ 2,627,879.26 $ $ $ Is 1 $ 1 $ 1,636,700.24 1,636,700.24 $ 4,264,579.50 $ $ $ $ $ 4,264,579.50 rhis Enforceable Obligation Payment Schedule (EOPS) is to be adopted by the redevelopment agency no later than late August. It is valid through 12/31/11. It is the basis for the Preliminary Draft Recognized Obligation Payment Schedule (ROPS), which must be prepared by the dissolving Agency by 9/30/11. (The draft ROPS must be prepared by the Successor Agency by 11/30/11.) If an agency adopts a continuation ordinance per ABX1 27, this EOPS will not be valid and there is no need to prepare a ROPS.