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Home My WebLink AboutAGENDA REPORT 2017 0117 OB REG ITEM 06A TO SOR OVERSIGHT OF HEBREDEVELOPMENTDS AGE AGENCY 'TEM �■A■ OF THE CITY OF MOORPARK MEETING of I /111201i ACTION: Aro'/ed 51-614-4+ .eGoy►rnenda-io,1 trrc1..4.01 qd 00-ion of (2BSot±h0Y1 r • oe -Zo1.1, - 102. BY: p2-77o- 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 q-A".. DATE: January 9, 2017 (Oversight Board Meeting January 17, 2017) SUBJECT: Consider Resolution Adopting the Recognized Obligation Payment Schedule (ROPS 17-18) for July 1, 2017 to June 30, 2018 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. Staff is requesting the Oversight Board consider the attached Resolution to adopt the ROPS 17-18 for July 1, 2017 to June 30, 2018. DISCUSSION Deadlines for ROPS Submission and Review The Redevelopment Dissolution Law does not specify a deadline for the Successor Agency to submit the ROPS for July 1, 2017 to June 30, 2018 ("ROPS 17-18") to the Oversight Board for approval. However, the Successor Agency must submit an Oversight Board-approved ROPS 17-18 to the DOF, the Office of the State Controller and the County Auditor-Controller by February 1, 2017. The Successor Agency must submit the ROPS to the DOF electronically in the manner of DOF's choosing. A copy of the Oversight Board-approved ROPS must be posted on the Successor Agency's website. 1 Oversight Board to the Successor Agency January 17, 2017 Page 2 The DOF may eliminate or modify any items on the ROPS before approving the ROPS. The DOF must make its determination regarding the enforceable obligations and the amount and funding source for each enforceable obligation listed on a ROPS no later than April 15, 2017. . Within five business days of the DOF's determination, the Successor Agency may request to "meet and confer" with the DOF on disputed items. The meet and confer period may vary, but an untimely submission of ROPS 17-18 may result in a meet and confer period of less than 30 days. The County Auditor-Controller may object to the inclusion of any item on the ROPS that is not demonstrated to be an enforceable obligation and may object to the funding source proposed for any item. The County Auditor-Controller must provide notice of its objections to the DOF, the Successor Agency and the Oversight Board by March 2, 2017. Penalties for Failure to Make Timely Submission If the Successor Agency does not submit an Oversight Board-approved ROPS by the statutory deadline, the City of Moorpark will be subject to a civil penalty of $10,000 per day for every day that the ROPS is not submitted to the DOF. The penalty is to be paid to the County Auditor-Controller for distribution to the taxing entities. If the Successor Agency does not timely submit a ROPS, creditors of the successor agency, the DOF, and affected taxing entities may request a writ of mandate to require the Successor Agency to immediately perform this duty. Additionally, if the Successor Agency does not submit a ROPS within 10 days of the statutory deadline, the Successor Agency's administrative cost allowance for that period will be reduced by 25 percent. If the Successor Agency fails to submit an Oversight Board-approved ROPS to the DOF within five business days of "the date upon which the ROPS is to be used to determine the amount of property tax allocations", the DOF may determine whether the County Auditor-Controller should distribute any of property tax revenues to the taxing entities, or whether any amount should be withheld for enforceable obligations pending approval of the ROPS. It is not clear what is "the date upon which the ROPS is to be used to determine the amount of property tax allocations." ROPS 17-18 This is the eleventh ROPS the Oversight Board is being requested to approve. This is the second time the ROPS is for an annual period. All prior ROPS were for six-month periods. ROPS 17-18 is for a complete twelve-month fiscal year. This ROPS form, if approved by the Oversight Board and the DOF, will yield $2,230,578 to the Successor Agency for the time period July 1, 2017 to June 30, 2018 for payment of enforceable obligations and administration expenses. As a reminder the County Auditor-Controller disburses the funds on January 2nd and June 1st each year. The second page is the actual ROPS detail. The largest RPTTF items are for the bond debt service (2014 and 2016) in the total amount of $1,511,836. Item #38 requests $418,742 from the RPTTF to pay to Moorpark Unified School District (MUSD) for unpaid 2 Oversight Board to the Successor Agency January 17, 2017 Page 3 prior-period pass-through obligations. This is a repeat item from ROPS 16-17 Amended, which was subsequently denied by the DOF. The Successor Agency is paying $418,742, in total to MUSD. Item #40 is to obtain authorization to spend the remaining amounts from the 2006 bond sale in the amount of$4.5 million. This amount includes the sales proceeds of the sale of property along Los Angeles Avenue. The third page is the Report of Cash Balances. This report details the bond fund balances, other fund sources (rent, etc.) and the Redevelopment Property Tax Trust Fund (RPTTF) fund balance for Administration and Non-Administration. The actual beginning balances, revenue and expenditures for the six month period January 1, 2016 to June 30, 2016. The DOF form does not require an estimate for the six month period following, like in the prior ROPS submittals. The "Report of Prior Period Adjustments" was not included in the ROPS package by the DOF. Finding of Completion The Successor Agency received the "Finding of Completion" from the DOF on March 25, 2013. The Successor Agency is now authorized to do the following: • Retain dissolved RDA assets per HSC Section 34191.5 (c) (2) • Place loan agreements between the former redevelopment agency and sponsoring entity on the ROPS, as an enforceable obligation, provided the oversight board makes a finding that the loan was for legitimate redevelopment purposes per HSC Section 34191.4 (b) (1) • Utilize proceeds derived from bonds issued prior to Jan. 1, 2011 in a manner consistent with the original bond covenants per HSC Section 34191.4 (c) 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 3 Oversight Board to the Successor Agency January 17, 2017 Page 4 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, 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 ROPS 17-18 is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from July 1, 2017 to June 30, 2018. STAFF RECOMMENDATION (ROLL CALL VOTE) 1. Adopt Resolution No. OB-2017- 2. Direct staff to transmit the approved ROPS, 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(k)(2)(C)]. Attachments: 1. Resolution No. OB-2017- 2. ROPS 17-18 for July 1, 2017 to June 30, 2018 4 Attachment 1 RESOLUTION NO. OB-2017- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE MEETING OF JANUARY 17, 2017, APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE FISCAL PERIOD FROM JULY 1, 2017 THROUGH JUNE 30, 2018 AND TAKING CERTAIN RELATED ACTIONS WHEREAS, Section 34179 (e) of the Health and Safety Code requires all actions taken by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and 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, 2017 through June 30, 2018 ("ROPS 17- 18") and submit ROPS 17-18 to the oversight board of the Successor Agency (the "Oversight Board") for approval; 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 ROPS 17-18 to the DOF, the Office of the State Controller, and the County Auditor-Controller no later than February 1, 2017, and (ii) post a copy of the Oversight Board-approved ROPS 17-18 on the Successor Agency's website; and WHEREAS, on January 17, 2017 the recommended Recognized Obligation Payment Schedule for July 1, 2017 to June 30, 2018 was submitted to the Oversight Board for its review and consideration (Agenda Item 6.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. SECTION 2. The Oversight Board hereby approves the proposed ROPS 17-18, substantially, in the form attached hereto as Attachment 2 with Agenda Item 6.A. Staff of the Successor Agency is hereby authorized and directed to: (i) submit a copy of Oversight Board-approved ROPS 17-18 to the DOF, the Office of the State Controller, and the County Auditor-Controller and (ii) post a copy of the Oversight Board-approved ROPS 17-18 on the Successor Agency's Internet website (being a page on the Internet website of the City of Moorpark). 5 SECTION 3. 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 ROPS 17-18 pursuant to the DOF's instructions, and any such actions previously taken are hereby ratified and confirmed. SECTION 4. 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 17th day of January, 2017. Bruce Hamous, Chair ATTEST: Maureen Benson, City Clerk 6 Recognized Obligation Payment Schedule (ROPS 17-18) - Summary Filed for the July 1, 2017 through June 30, 2018 Period Successor Agency: 1-17-17 County: Ventura 17-18A Total 17-18B Total Current Period Requested Funding for Enforceable Obligations (ROPS Detail) (July-December) (January-June) ROPS 17-18 Total A Enforceable Obligations Funded as Follows (B+C+D): $ 5,951,524 $ 100,000 $ 6,051,524 B Bond Proceeds 4,600,000 100,000 4,700,000 C Reserve Balance 1,351,524 - 1,351,524 D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): $ 568,742 $ 1,661,836 $ 2,230,578 F RPTTF 443,742 1,536,836 1,980,578 G Administrative RPTTF 125,000 125,000 250,000 H Current Period Enforceable Obligations (A+E): $ 6,520,266 $ 1,761,836 $ 8,282,102 Certification of Oversight Board Chairman: Bruce Hamous Chairperson Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Name Title Payment Schedule for the above named successor agency. /s/ 1/17/2017 Signature Date 7 Moorpark Recognized Obligation Payr July 1, 2017 thr (Report Amoun A B C D E F G H I J Contract/Agreement Contract/Agreement Total Outstanding Item# Project Name/Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project Scope Project Area Debt or Obligation Retired $ 37,390,195 3 2006 Tax Allocation Bonds Bonds Issued On or Before 12/13/2006 6/30/2039 Bank of New York Bond Principal& Interest Payments MRP - Y 4 Bond Trustee Fees 5/1/1999 6/30/2039 Bank of New York Trustee services MRP 220.000 N 5 Bond Disclosure and consulting Fees 4/12/2007 6/30/2039 Urban Futures Bond Disclosure and consulting MRP 220.000 N services services 6 Bond Arbitrage Calks Fees 10/13/2009 6/30/2039 BondLogistix Bond Arbitrage Calks N 9 Salary and Benefits Admin Costs 7/1/2016 6/30/2017 Employees Salary and Benefits MRP 194,000 N 10 Operations Admin Costs 7/1/2016 6/30/2017 varies Operations MRP 56,000 N 22 Audit of Successor Agency Fees 4/19/2012 3/31/2017 Rogers,Anderson, Malody Auditing Services for Successor N &Scott Agency 32 161 2nd Street Improvement/Infrastructure 7/1/2016 6/30/2017 TBD Redevelopment of land for a MRP N neighborhood park _ 33 Bank Charges Fees 7/1/2016 6/30/2017 Bank of America •Bank charges MRP 10.000 N 34 Tax Assessments Miscellaneous 7/1/2015 6/30/2016 City of Moorpark Assessments for Lighting/Landscaping N 35 Ruben Castro Human Services Improvement/Infrastructure 7/1/2016 6/30/2017 varies Building& Improvements at Ruben MRP 200.000 N Center Castro Human Services Center 36 2014 Tax Allocation Refunding Refunding Bonds Issued 11/18/2014 6/30/2032 Bank of New York Bond Principal& Interest payments MRP 15,495,290 N Bonds After 6/27/12 37 Unfunded Prio-Year Pass-Through Miscellaneous 2/11/1993 2/1/2012 Ventura County Community Unfunded Prior-Year Pass-Through MRP Y Payment Obligations College District Payment Obligations(FY 2007/2008- 2010/2011 38 Unfunded Prio-Year Pass-Through Miscellaneous 2/11/1993 2/1/2012 Moorpark Unified School Unfunded Prior-Year Pass-Through MRP 418,742 N Payment Obligations District Payment Obligations 39 2016 Tax Allocation Refunding Refunding Bonds Issued 7/5/2016 6/30/2039 Bank of New York Bond Principal& Interest payments MRP 16.076,163 N Bonds After 6/27/12 40 Bond Proceeds Funding Agreement Bond Funded Project—Pre- 2/1/2017 6/30/2018 City of Moorpark Bond Proceeds Funding Agreement MRP 4,500,000 N 2011 41 N 42 N 43 N 44 N 45 N 46 N 47 _ N 48 N 49 N 50N 51 N 52 N 53 N 8 Tient Schedule (ROPS 17-18) - ROPS Detail •ough June 30, 2018 is in Whole Dollars) K L M N 0 P Q R S T U V W 17-18A (July - December) 17-18B (January - June) Fund Sources Fund Sources ROPS 17-18 17-18A 17-18B Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total $ 8,282,102 $ 4,600,000 $ 1,351,524 $ - $ 443,742 $ 125,000 $ 6,520,266 $ 100,000 $ - $ - $ 1,536,836 $ 125,000 $ 1,761,836 $ - - $ - - $ - $ 20,000 10,000 $ 10,000 10,000 $ 10,000 $ 20,000 10,000 $ 10.000 10,000 $ 10,000 $ 194,000 97,000 $ 97,000 97,000 $ 97,000 $ 56,000 28,000 $ 28,000 28,000 $ 28,000 $ - $ - $ - $ 10,000 5,000 $ 5,000 5,000 $ 5,000 $ 200,000 100,000 $ 100,000 100,000 $ 100,000 $ 2,126,034 959,511 $ 959,511 1,166,523 $ 1,166,523 $ - $ $ - $ 418,742 418,742 $ 418,742 $ - $ 737,326 392,013 $ 392,013 345,313 $ 345,313 $ 4,500,000 4,500,000 $ 4,500,000 $ - $ $ - $ - $ - _ $ - $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ $ - $ - _ $ - $ $ - $ $ - $ - $ - _ $ - $ - $ - $ - 9 Moorpark Recognized Obligation Payment Schedule (ROPS 17-18) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177(I), 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. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet. A B C D E F G H I Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS Pnor ROPS period balances RPTTF Bonds issued on and DDR RPTTF distributed as Rent, Non-Admin or before Bonds issued on balances reserve for future grants, and Cash Balance Information by ROPS Period 12/31/10 or after 01/01/11 retained penod(s) interest, etc Admin Comments ROPS 15-16B Actuals(01/01/16-06/30/16) 1 Beginning Available Cash Balance(Actual 01/01/16) 2,869,398 1,253,732 - 487,255 - 286,516 2 Revenue/Income(Actual 06/30/16) RPTTF amounts should tie to the ROPS 15-16B distnbution from the County Auditor-Controller dunng January 2016 2,694 4,761 1,560,164 3 Expenditures for ROPS 15-16B Enforceable Obligations(Actual 06/30/16) 73,608 3,000 4,761 596,753 4 Retention of Available Cash Balance(Actual 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future penod(s) 487,255 1,241,544 5 ROPS 15-16B RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance CtoG=(1 +2-3-4),H=(1 +2-3-4-5) $ 2,795,790 $ 1,253,426 $ - $ - $ - $ 8,383 10