HomeMy WebLinkAbout10 - NB-1 - Successor Agency Approval of Recognized - 2/21/2012MEETING DATE: FEBRUARY 21, 2012
ITEM NUMBER: 1
SUBJECT: SUCCESSOR AGENCY APPROVAL OF RECOGNIZED OBLIGATION PAYMENT
SCHEDULE(ROPS)
DATE: FEBRUARY 16, 2012
FROM: FINANCE DEPARTMENT /FINANCE ADMINISTRATION
PRESENTATION BY: BOBBY YOUNG, FINANCE AND I.T. DIRECTOR
FOR FURTHER INFORMATION CONTACT: BOBBY YOUNG, FINANCE AND I.T. DIRECTOR
(714) 754-5243
RECOMMENDED ACTION
Adopt resolution of the City Council of the City of Costa Mesa, California, acting as
successor agency to the Costa Mesa Redevelopment Agency, approving a Recognized
Obligation Payment Schedule ('BOPS") and authorizing certain other actions pursuant
to Section 34177 of Part 1.85 of the Dissolution Act.
BACKGROUND/DISCUSSION
As presented to the City Council in January 2012 the California Supreme Court's
decision in California Redevelopment Association, et al., v. Matosantos ("Matosantos")
upheld Assembly Bill x1 26, the "Dissolution Act". AB x1 26 added Parts 1.8 and 1.85 to
Division 24 of the California Health & Safety Code, which laws cause the dissolution and
winding down of all California redevelopment agencies. By resolution the City Council
elected for the City to become and serve as the "Successor Agency" to this community's
dissolved redevelopment agency ("Agency"). On and after February 1, 2012, the
Agency is dissolved and the City serves as the "Successor Agency". The City will
perform its functions as the successor agency under the Dissolution Act to administer
the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all
subject to the review and approval by a seven -member Oversight Board. Prior to its
dissolution and pursuant to Part 1.8, the Agency adopted an original and an amended
enforceable obligation payment schedule ("EOPS") and an initial recognized payment
schedule ("IROPS") and authorized the City Manager, Finance Director and/or their
authorized designees to augment or modify the EOPS and the IROPS and to transmit
the EOPS and IROPS to the City (to be serving as Successor Agency) and to the
County Auditor -Controller, the Department of Finance, and State Controller's Office.
Pursuant to Section 34171(g) of Part 1.85, a "Recognized Obligation Payment
Schedule" means the document setting forth the minimum payment amounts and due
dates of payments required by enforceable obligations for each six-month fiscal period
as provided in subdivision (m) of Section 34177. Under to the dates in the Dissolution
Act as reformed by the Supreme Court, every successor agency is required to consider
and adopt a Recognized Obligation Payment Schedule on or before March 1, 2012,
which is comparable to the IROPS previously adopted by the former Agency.
1
Section 34177(k) of Part 1.85 requires the Successor Agency to take actions with regard
to the Recognized Obligation Payment Schedule ("ROPS") as follows:
"(2)(A) A draft Recognized Obligation Payment Schedule is prepared by the
successor agency for the enforceable obligations of the former redevelopment
agency by March 1, 2012. From February 1, 2012, to July 1, 2012, the initial draft
of that schedule shall project the dates and amounts of scheduled payments for
each enforceable obligation for the remainder of the time period during which the
redevelopment agency would have been authorized to obligate property tax
increment had such a redevelopment agency not been dissolved, and shall be
reviewed and certified, as to its accuracy, by an external auditor designated
pursuant to Section 34182.
(B) The certified Recognized Obligation Payment Schedule is submitted to and
duly approved by the oversight board.
(C) A copy of the approved Recognized Obligation Payment Schedule is
submitted to the county auditor -controller and both the Controller's office and the
Department of Finance and be posted on the successor agency's Internet Web
site.
(3) The Recognized Obligation Payment Schedule shall be forward looking to the
next six months. The first Recognized Obligation Payment Schedule shall be
submitted to the Controller's office and the Department of Finance by April 15,
2012, for the period of May 1, 2012, to June 30, 2012, inclusive.
Former redevelopment agency enforceable obligation payments due, and
reasonable or necessary administrative costs due or incurred, prior to January 1,
2012, shall be made from property tax revenues received in the spring of 2011
property tax distribution, and from other revenues and balances transferred to the
successor agency."
Staff has prepared for the City Council's consideration and approval, acting as the
Successor Agency, an initial ROPS, which is Attachment No. 2 to this report. If adopted,
the attached Resolution (Attachment No. 1) of the City Council serving as the
Successor Agency approves the ROPS and authorizes the transmittal of the ROPS to
the Oversight Board when formed and to the County Auditor -Controller, the Department
of Finance, and the State Controller's Office, and to cause posting of the ROPS on the
City's/Successor Agency's website.
FISCAL REVIEW
Based on the recommendation action, there is no fiscal impact.
LEGAL REVIEW
Legal has review the attachments and approved them as to form.
2
CONCLUSION
Staff recommends the City of Costa Mesa, acting as successor agency of the Costa
Mesa Redevelopment Agency, adopt the attached Recognized Obligation Payment
Schedule and authorize certain other actions pursuant to Part 1.85 of the Dissolution
Act.
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Attachment(s): Attachment 1: City Council Resolution, acting as Successor Agency
Resolution
Attachment 2: Recognized Obligation Payment Schedule
3
RESOLUTION NO. _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA ACTING AS SUCCESSOR AGENCY TO THE
COSTA MESA REDEVELOPMENT AGENCY APPROVING A
RECOGNIZED OBLIGATION SCHEDULE AND
AUTHORIZING CERTAIN OTHER ACTIONS PURSUANT
SECTION 34177 OF PART 1.85 OF THE DISSOLUTION ACT
WHEREAS, the Costa Mesa Redevelopment Agency ("Agency") was established as
a community redevelopment agency that was previously organized and existing under the
California Community Redevelopment Law, Health and Safety Code Sections 33000, et
seq. ("CRL"), and previously authorized to transact business and exercise the powers of a
redevelopment agency pursuant to action of the City Council ("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 & Safety Code, which laws cause the dissolution and wind down of all
redevelopment agencies ("Dissolution Act"); and
WHEREAS, on December 29, 2011, in the petition California Redevelopment
Association v. Matosantos, Case No. S194861, the California Supreme Court upheld the
Dissolution Act and thereby all redevelopment agencies in California were dissolved as of
and on February 1, 2012 under the dates in the Dissolution Act that were reformed and
extended thereby ("Supreme Court Decision"); and
WHEREAS, the Agency is now a dissolved community redevelopment agency
pursuant to the Dissolution Act; and
WHEREAS, by a resolution considered and approved by the City Council at an open
public meeting the City chose to become and serve as the "successor agency" to the
dissolved Agency under the Dissolution Act; and
WHEREAS, as of and on and after February 1, 2012, the City serves as the
"Successor Agency" will perform its functions as the successor agency under the
Dissolution Act to administer the enforceable obligations of the Agency and otherwise
unwind the Agency's affairs, all subject to the review and approval by a seven -member
Oversight Board formed thereunder; and
WHEREAS, under Part 1.8 of the Dissolution Act, the Agency prior to its dissolution
adopted an original and an amended enforceable obligation payment schedule ("EOPS")
and authorized the City Manager and/or Finance Director or their authorized designee to
augment or modify the EOPS and transmitted the EOPS to the City (to be serving as
Successor Agency) and to the County Auditor -Controller, the Department of Finance and
the State Controller's Office; and
WHEREAS, under Part 1.8 of the Dissolution Act, the Agency prior to its dissolution
adopted an initial recognized payment schedule ("IROPS") and authorized the City Manager
and/or Finance Director or their authorized designee to augment or modify the IROPS and
DOCSOC/ I53S5SOv2/029999-0000
transmitted such IROPS to the City (to be serving as Successor Agency) and to the County
Auditor -Controller, the Department of Finance and the State Controller's Office the City,
serving as Successor Agency; and
WHEREAS, pursuant Part 1.85 of the Dissolution Act, Section 34171(g),
a "Recognized Obligation Payment Schedule" means the document setting forth the
minimum payment amounts and due dates of payments required by enforceable obligations
for each six-month fiscal period as provided in subdivision (m) of Section 34177; and
WHEREAS, pursuant to the dates in the Dissolution Act, Section 34177(k),
as reformed by the Supreme Court Decision, every successor agency is required to
consider and adopt a Recognized Obligation Payment Schedule by March 1, 2012, which,
as attached to this Resolution, is comparable to the IROPS previously adopted by the
former Agency; and
WHEREAS, the City as Successor Agency has prepared its initial Recognized
Obligation Payment Schedule ('BOPS"), appended as Attachment No. 1 to this Resolution
and incorporated herein by this reference; and
WHEREAS, by this Resolution, the City Council, serving as and on behalf of the
Successor Agency, approves the ROPS and authorizes the transmittal of the ROPS to the
Oversight Board when formed; and
WHEREAS, pursuant to Section 34177 a copy of the ROPS also is submitted to the
County Auditor -Controller for review and certification, as to its accuracy, by an external
auditor designated pursuant to Section 34182; and
WHEREAS, pursuant to Section 34177 a copy of the ROPS also is submitted to the
State Controller's Office and the Department of Finance and shall be posted on the
Successor Agency's Internet Web site.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL SERVING AS
THE SUCCESSOR AGENCY:
Section 1. The foregoing recitals are incorporated into this resolution by this
reference, and constitute a material part hereof.
Section 2. The ROPS is approved together with such augmentation, modification,
additions or revisions as the City Manager and/or the Finance Director or their authorized
designees may make thereto.
Section 3. The City Manager or his authorized designees on behalf of the
Successor Agency shall cause the ROPS to be transmitted to the Oversight Board at such
time as the Oversight Board has been established and to be transmitted to the County
Auditor -Controller, the State Controller's Office, and the Department of Finance; further, the
City Manager or his authorized designees on behalf of the Successor Agency shall cause
the ROPS to be posted on the City's website.
Section 4. This Resolution shall be effective immediately upon adoption
DOCSOC/ 1538580v2/029999-0000
Section 5. The City Clerk on behalf of the Successor Agency shall certify to the
adoption of this Resolution.
APPROVED AND ADOPTED this _ day of February 2012.
CITY OF SERVING AS
SUCCESSOR AGENCY
Mayor
(SEAL)
ATTEST:
City Clerk on behalf of Successor Agency
APPROVED AS TO FORM:
City Attorney on behalf of Successor Agency
DOCSOC/ 1538580x2/029999-0000
STATE OF CALIFORNIA )
COUNTY OF ) ss.
CITY OF )
I, , City Clerk of the City of ,
hereby certify that the foregoing resolution was duly adopted by the City Council of the City,
serving as Successor Agency, at its regular [special] meeting held on the day of
February, 2012, and that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk on behalf of Successor Agency
(SEAL)
DOCSOC/ 153858001029999-0000
ATTACHMENT NO. 1
(attach ROPS)
DOCSOC/ 1538580v21029999-0000
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