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Home My WebLink AboutAGENDA REPORT 2016 0816 OB REG ITEM 07A OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY ITEM 7.A. F THE CITY OF MOORPARK MEETING of IW(20110 ACTION: Approved 5-1-044-Kecornmenda-}ion 1 nc I Lid Coq ctdoptior) o-f KesoI -hon No.Oe)- 201(,-45 BY. 6.C,Qr2A, OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: Ron Ahlers, Finance Director DATE: August 4, 2016 (Oversight Board Meeting August 16, 2016) SUBJECT: Consider Resolution Adopting the Amended Recognized Obligation Payment Schedule (ROPS 16-17B) for January 1, 2017 to June 30, 2017 SUMMARY Pursuant to section 34177(o)(1) of the California Health and Safety Code (the "Redevelopment Dissolution Law"), the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each twelve-month fiscal period (commencing July 1, 2016), listing the payments to be made by the Successor Agency during such period. All ROPS must be approved by the Oversight Board. Furthermore, each Oversight Board-approved ROPS must be submitted to the State Department of Finance ("DOF"), State Controller's Office ("SCO") and County Auditor-Controller for review. The Successor Agency submitted the ROPS 16-17 on January 20, 2016. The DOF approved the ROPS 16-17 on March 15, 2016. Health and Safety Code (HSC) section 34177 (o) (1) (E) authorizes a successor agency once per Recognized Obligation Payment Schedule (ROPS) period, and no later than October 1, to submit one amendment to the ROPS if the oversight board (OB) finds a revision is necessary for the payment of approved enforceable obligations during the second one-half of the ROPS period. A successor agency may only amend the amount requested for payment of approved enforceable obligations. Staff is requesting the Oversight Board consider the attached Resolution to adopt the Amended ROPS 16-17B for January 1, 2017 to June 30, 2017. 4 Oversight Board to the Successor Agency August 16, 2016 Page 2 DISCUSSION In 2014 the Moorpark Unified School District (MUSD), Successor Agency and City of Moorpark (City) entered into a Memorandum of Understanding (MOU) regarding the calculation of the pass-thru agreement. The Ventura County Auditor-Controller (VCAC) also signed the agreement under this language: The Office of the Ventura County Auditor-Controller hereby concurs with the Parties' understanding regarding the implementation of the 1993 Pass Through Agreement (Exhibit "1" hereto) as memorialized in Section 5 of the foregoing Memorandum of Understanding and consents to this Memorandum of Understanding. The Oversight Board approved the MOU by passing Resolution Number OB-2014-63 at the meeting of July 15, 2014. The Successor Agency sent the MOU to the DOF for approval on July 16, 2014. The DOF approved the MOU, via email, on Monday, July 21, 2014: This email serves as notice that Finance is not initiating a review of OB Resolutions No. 2014-62 and No. 2014-63 related to the settlement agreement and MOU between Moorpark Unified School District, the Former Redevelopment Agency of the City of Moorpark, and the City of Moorpark. However, requests for repayment are subject to Finance's review and approval on a subsequent Recognized Obligation Payment Schedule. Sincerely, Jeremy Bunting Analyst, Local Government Unit Department of Finance (916) 445-1546 Ext. 3742 MUSD, VCAC, Successor Agency and the City are in agreement as to the dollar amount of the pass-thru payment owed to MUSD, $418,741.92. The DOF requires the amount to be submitted on a ROPS and it be in whole dollars, thereby, we are submitting $418,742 on the amended ROPS 16-17B. The deadline for submitting the amended ROPS is October 1, 2016. The DOF has until December 15, 2016 to make a determination on the amended ROPS 16-17B. 5 Oversight Board to the Successor Agency August 16, 2016 Page 3 HSC section 34177(o)(1)(E) states the Oversight Board must make a finding: Once per Recognized Obligation Payment Schedule period, and no later than October 1, a successor agency may submit one amendment to the Recognized Obligation Payment Schedule approved by the department pursuant to this subdivision, if the oversight board makes a finding that a revision is necessary for the payment of approved enforceable obligations during the second one-half of the Recognized Obligation Payment Schedule period, which shall be defined as January 1 to June 30, inclusive. A successor agency may only amend the amount requested for payment of approved enforceable obligations. The revised Recognized Obligation Payment Schedule shall be approved by the oversight board and submitted to the department by electronic means in a manner of the department's choosing. The department shall notify the successor agency and the county auditor-controller as to the outcome of the department's review at least 15 days before the date of the property tax distribution. The Oversight Board must make a finding that a revision is necessary for the payment of the approved enforceable obligation. This finding is stated in the attached resolution that the unfunded pass-thru payment is due to MUSD. ROPS Definition As a reminder, the ROPS is defined in the Health and Safety Code, section 34171(h): 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. An "enforceable obligation" is defined per the Health and Safety Code, section 34171(d)(1), an enforceable obligation means: A. Bonds B. Loans C. Payments required by the federal government or the state D. Judgments or settlements E. Any legally binding and enforceable agreement or contract F. Contracts or agreements necessary for the administration or operation of the successor agency (i.e. employee pay and benefits, rent, insurance, office supplies, etc.) G. Amounts borrowed from, or payments owing to, the Low and Moderate Income Housing Fund Section 34177.3(b) states: Successor agencies may create enforceable obligations to conduct the work of winding down the redevelopment agency, including hiring staff, 6 Oversight Board to the Successor Agency August 16, 2016 Page 4 acquiring necessary professional administrative services and legal counsel, and procuring insurance. FISCAL IMPACT The Successor Agency is limited to spending resources as they are listed on the ROPS. The preparation and submittal of the Amended ROPS 16-17B is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from January 1, 2017 to June 30, 2017. Specifically, the Amended ROPS 16-17B adds the unfunded pass-thru payments to MUSD in the amount of$418,742. STAFF RECOMMENDATION (ROLL CALL VOTE) 1. Adopt Resolution No. OB-2016- 2. Direct staff to transmit the approved Amended ROPS 16-17B, with the signature of the Chairperson, to the State of California (Department of Finance, State Controller's Office), Ventura County Auditor-Controller and post to the City's website, as per the legislation [Health and Safety Code, section 34177(I)(2)(C)]. Attachments: 1. Resolution No. OB-2016- 2. Amended Recognized Obligation Payment Schedule (ROPS 16-17B) for the January 1, 2017 to June 30, 2017 Period 7 Attachment 1 RESOLUTION NO. OB-2016- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE MEETING OF AUGUST 16, 2016, APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE FISCAL PERIOD FROM JANUARY 1, 2017 THROUGH JUNE 30, 2017 AND TAKING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code Section 34177(o), the Successor Agency to the Redevelopment Agency of the City of Moorpark (the "Successor Agency") must prepare a Recognized Obligation Payment Schedule listing the anticipated payments for enforceable obligations to be made by the Successor Agency during the fiscal period from July 1, 2016 through June 30, 2017 ("ROPS 16- 17") and submit ROPS 16-17 to the oversight board of the Successor Agency (the "Oversight Board") for approval; and WHEREAS, pursuant to Health and Safety Code Section 34177(o)(1)(E), the Successor Agency may submit one amendment to the approved ROPS 16-17, if the Oversight Board makes a finding that the revision is necessary for the payment of approved enforceable obligations during the second one-half of the ROPS 16-17 period (i.e., January 1, 2017 to June 30, 2017, inclusive); and WHEREAS, pursuant to Health and Safety Code Section 34177(I)(2)(C) and Section 34177(o)(1), the Successor Agency must: (i) submit the Oversight Board- approved amended ROPS 16-17B to the DOF, the Office of the State Controller, and the County Auditor-Controller no later than October 1, 2016, and (ii) post a copy of the Oversight Board-approved amended ROPS 16-17B on the Successor Agency's website; and WHEREAS, on August 16, 2016 the recommended amended Recognized Obligation Payment Schedule for January 1, 2017.to June 30, 2017 ("Amended ROPS 16-17B") was submitted to the Oversight Board for its review and consideration (Agenda Item 7.A.). NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. 8 SECTION 2. The Oversight Board hereby approves the proposed Amended ROPS 16-17B, substantially in the form attached hereto as Attachment 2 with Agenda Item 7.A. Staff of the Successor Agency is hereby authorized and directed to: (i) submit a copy of Oversight Board-approved Amended ROPS 16-17B to the DOF, the Office of the State Controller, and the County Auditor-Controller and (ii) post a copy of the Oversight Board-approved Amended ROPS 16-17B on the Successor Agency's Internet website (being a page on the Internet website of the City of Moorpark). SECTION 3. The Oversight Board finds that this revision reflected on Amended ROPS 16-17B is necessary for the payment of the approved enforceable obligation of the unfunded pass-thru payment due to Moorpark Unified School District pursuant to the Memorandum of Understanding between the Moorpark Unified School District, Successor Agency and the City of Moorpark. SECTION 4. The Staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including but not limited to requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and making adjustments to Amended ROPS 16-17B pursuant to the DOF's instructions, and any such actions previously taken are hereby ratified and confirmed. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 16th day of August, 2016. Bruce Hamous, Chair ATTEST: Maureen Benson, City Clerk 9 Attachment 2 Amended Recognized Obligation Payment Schedule (ROPS 16-17B) -Summary Filed for the January 1, 2017 through June 30, 2017 Penod Successor Agency: Moorpark County: Ventura ROPS 16-17B ROPS 16-17B ROPS 16-17B Current Period Requested Funding for Enforceable Obligations (ROPS Detail) Authorized Amounts Requested Adjustments Amended Total A Enforceable Obligations Funded as Follows (B+C+D): $ 100,000 $ - $ 100,000 B Bond Proceeds 100,000 - 100,000 C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): $ 1,861,855 $ 418,742 $ 2,280,597 F RPTTF 1,736,855 418,742 2,155,597 G Administrative RPTTF 125,000 - 125,000 H Current Period Enforceable Obligations(A+E): $ 1,961,855 $ 418,742 $ 2,380,597 Certification of Oversight Board Chairman: Bruce Hamous Chair Person Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Name Title Recognized Obligation Payment Schedule for the above named successor agency. /s/ 8/16/2016 Signature Date 10 Moorpark Amended Recognized Obligation Payment Schedule(ROPS 16-17B)-ROPS Detail January 1,2017 through June 30,2017 (Report Amounts in Whole Dollars) AUTHORIZED AMOUNTS REQUESTED ADJUSTMENTS Fund Sources Fund Sources Total Outstanding Item 4 Project Name/Debt Obligation Obligation Type Balance Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total Notes $ 38,862,666 $ 100,000 $ - $ - $ 1,736,855 $ 125,000 $ 1,961,855 $ - $ - $ - $ 418,742 $ - $ 418,742 3 2006 Tax Allocation Bonds Bonds Issued On or Before $ 21379.545 - - - 542.832 $ 542.832 $ - 4 Bond Trustee Fees $ 220,000 - - - 10,000 $ 10,000 $ - 5 Bond Disclosure and consultinj_services Fees $ 220,000 - - - 10,000 $ 10,000 $ $ $ - $ - $ ":: - $ - $ -- a, 9 Salary and Benefds Admin Costs $ 194,000 - - $ - $ 10 rations Admin Costs $ 56 000, - - - $ - $ - 'Sf NU':, $ -. $ - $ - $ - $ - $ - 5 32 161 2nd Street Improvement/Infrastructure $ - - - - $ - $ - 33 Bank Cha es Fees $ 10.000 - - 5.000 $ 5,000 $ - Miscellaneous $ =AM - 5 - $ - $ • $ - $ - $ -35 Ruben Castro Human Services Center Improvement/Infrastructure $ 200,000 100,000 - - - $ 100,000 $36 2014 Tax Allocation Refunding Bonds Refunding Bonds Issued $ 16,658,913 - - - 1,169,023 $ 1,169,023 $ - Alter 6/27/12 37 Unfunded Pdo-Year Pass-Through Payment Miscellaneous $ 224,208 - - - - $ - 418,742 $ 418,742 Pass-thru payment due Moorpark Unified School Obligations District per MOU approved in July 2014. $ 5 - $ $ $ - $ - $ - $ - $ - $ . $ - $ - $ $ - $ - $ $ - $ - $ - $ - $ - $ ' $ - $ • $ $ - $ - $ $ - $ $ $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - $ $ $ • $ $ - $ - $ $ $ - $ $ - $ - $ $ - $ - $ $ - $ $ $ _ $ - • $ $ - $ - $ $ - $ - $ $ - $ $ -, $ - $ $ $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - $ - $ - $ - $ . $ $ $ -. $ $$ -, $ - $ $ $ - $ $ $ - $ $ • $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - $ $ - $ $ - $ - $ - $ . $ - $ - $ $ - $ - $ $ - $ - $ $ - $ - -$ $ • $ $ $ - $ $ $ - $ $ $ $ 11