CC 2021-01-12_08c Adopt Resolution_ROPS and Successor Agency Admin Budget
MEMORANDUM
TO: BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY
BY: MICHAEL STEVENS, ADMINISTRATIVE SERVICES DIRECTOR
FROM: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING
THE ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY TO
THE DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY
FOR FISCAL YEAR 2021-22 AND ADOPTION OF A RESOLUTION
APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR FISCAL YEAR 2021-22
DATE: JANUARY 12, 2021
SUMMARY OF ACTION:
Adoption of the Resolutions will allow the Administrative Budget and Recognized
Obligation Payment Schedule (ROPS) for the Successor Agency to the Dissolved Arroyo
Grande Redevelopment Agency (Successor Agency) for Fiscal Year 2021-22 to be
forwarded to the County Oversight Board for approval.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Approval of the Administrative Budget allows the Successor Agency to receive
reimbursement for its administrative costs in the amount of $30,000. The preparation and
submittal of ROPS 2021-22 is for the purpose of allowing the Successor Agency to pay
its enforceable payment obligations for the period from July 1, 2021 through June 30,
2022.
RECOMMENDATION:
It is recommended that the Board of Directors of the Successor Agency to the Dissolved
Arroyo Grande Redevelopment Agency: 1) adopt a Resolution approving the
Administrative Budget for the period July 1, 2021, through June 30, 2022; and 2) adopt a
Resolution approving an Annual Recognized Obligation Payment Schedule (“ROPS”) for
the fiscal period from July 1, 2021, through June 30, 2022, pursuant to Health and Safety
Code Section 34177 and taking certain related actions.
BACKGROUND:
The Department of Finance requires that by February 1, 2021, Successor Agencies must
provide the Department of Finance with Recognized Obligation Payment Schedules
(“ROPS”) covering the period of July 1, 2021 through June 30, 2022. The ROPS must
Item 8.c. - Page 1
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT
AGENCY
CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE ADMINISTRATIVE
BUDGET FOR THE SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY FOR FISCAL YEAR 2021-22 AND ADOPTION OF A
RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR
FISCAL YEAR 2021-22
JANUARY 12, 2021
PAGE 2
first be approved by the County Oversight Board before submittal to the Department of
Finance. The County Oversight Board will convene on January 29, 2021, to review and
approve the ROPS, and the County of San Luis Obispo has committed to providing the
final approved documents prior to the Department of Finance’s February 1, 2021
deadline. The Department of Finance will then have forty-five days to review the ROPS,
and to object to any items that do not meet the definition of an Enforceable Obligation.
Previously, the annual ROPS were reviewed and approved by Arroyo Grande’s Oversight
Board, which consisted of seven-members by which two members were appointed by the
Mayor, two by County Board of Supervisors, two by Local Education Agencies, and one
member from the largest special district. However, pursuant to Health & Safety Code
Section 34179(j), commencing July 1, 2018, all Oversight Boards in the County of San
Luis Obispo have been replaced by one Countywide Oversight Board managed by the
County.
ANALYSIS OF ISSUES:
At this time, the Successor Agency is being asked to approve the Administrative Budget
for the period July 1, 2021, through June 30, 2022 and to approve the annual ROPS for
submittal to the County Oversight Board.
Below is an explanation of each of the debt items listed on the July 1, 2021, through June
30, 2022 ROPS:
1. 2018 Tax Allocation Bonds – The 2007 Bonds were refinanced in 2018 for a debt
service savings of $1,179,681 net of all costs of issuance. The 2018 Bonds in the
amount of $5,305,000 were issued to repay funds that had been borrowed from
internal funds for start-up costs for the Redevelopment Agency and to fund new
economic development and affordable housing projects. This is a 30-year debt and
the last payment is due on September 1, 2037.
2. Administrative Costs – Per ABX1 26, the Successor Agency is eligible to receive
an “administrative cost allowance” for reimbursement of the Successor Agency’s
administrative costs. The amount of $30,000 is the estimated amount needed for
the next fiscal year of reimbursable administrative costs. Staff has included the
Administrative Budget for Oversight Board approval.
3. 2018 Tax Allocation Bond Fees – This is the fiscal agent fee of $2,000 per year
that is charged by Wells Fargo Bank.
Item 8.c. - Page 2
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT
AGENCY
CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE ADMINISTRATIVE
BUDGET FOR THE SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY FOR FISCAL YEAR 2021-22 AND ADOPTION OF A
RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR
FISCAL YEAR 2021-22
JANUARY 12, 2021
PAGE 3
ALTERNATIVES:
The following alternatives are provided for the Board’s consideration:
1. Adopt the Resolution approving the Administrative Budget and the Resolution
approving the ROPS for the period July 1, 2021, through June 30, 2022, for submittal
to the County Oversight Board;
2. Do not adopt the Resolution approving the Administrative Budget or the Resolution
approving the ROPS for the period July 1, 2021, through June 30, 2022; or
3. Provide other direction to staff
ADVANTAGES:
Approving the Administrative Budget and the ROPS will allow the documents to be
forwarded to the County Oversight Board for approval.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 8.c. - Page 3
RESOLUTION NO. SA-2021-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE
BUDGET FOR FISCAL YEAR 2021-22
WHEREAS, Health and Safety Code Section 34177 prescribes the duties of successor
redevelopment agencies; and
WHEREAS, pursuant to Health and Safety Code Section 34177(j), the Successor Agency
must prepare a proposed Administrative Budget and submit it to the County Oversight
Board for approval; and
WHEREAS, the Administrative Budget for the period of July 1, 2021, through June 30,
2022, has been presented to the Board of Directors of the Successor Agency for its
consideration at a regular meeting of the Successor Agency held on January 12, 2021.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency as follows:
1. The foregoing recitals are true, correct and incorporated herein and made a part
hereof.
2. The Administrative Budget for the period from July 1, 2021, through June 30, 2022,
as set forth in “Exhibit A” attached hereto and by this reference incorporated
herein, is hereby approved and adopted.
On motion of Board Member , seconded by Board Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 12th day of January 2021.
Item 8.c. - Page 4
RESOLUTION NO. SA-2021-XXX
PAGE 2
_________________________________ _
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________ __
ANNAMARIE PORTER, INTERIM SECRETARY
APPROVED AS TO FORM:
_________________________________ __
TIMOTHY J. CARMEL, GENERAL COUNSEL
Item 8.c. - Page 5
SUCCESSOR AGENCY to the DISSOLVED
ARROYO GRANDE REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
for the Period July 1, 2021 through June 30, 2022
Salaries and Benefits 15,000$
City Manager, Finance personnel, City Clerk
Professional Services
Audit, Legal, Financial 10,000$
Overhead Costs
Successor Agency Board, Other 5,000$
Total Administrative Allocation 30,000$
Exhibit A
Item 8.c. - Page 6
RESOLUTION NO. SA-2021-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE FOR FISCAL YEAR 2021-22
WHEREAS, pursuant to Health and Safety Code Section 34177(o), the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency (the “Successor
Agency”) must prepare a proposed Recognized Obligation Payment Schedule (“ROPS”)
before each annual fiscal period (commencing July 1) and submit each proposed ROPS
to the Oversight Board for the Successor Agency for approval; and
WHEREAS, the Successor Agency shall submit the County Oversight Board approved
ROPS to the Department of Finance no later than February 1st of each year.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency hereby finds, determines
and orders as follows:
1. The foregoing recitals are true, correct and incorporated herein and made a part
hereof.
2. The ROPS for the period July 1, 2021, through June 30, 2022, as set forth in
“Exhibit A” attached hereto and by this reference incorporated herein, is hereby
approved and adopted.
3.The Board has authorized and directs Successor Agency staff to submit a copy of
the ROPS to the County Oversight Board for approval.
4. Successor Agency staff shall submit the County Oversight Board approved ROPS
to the Department of Finance no later than February 1, 2021.
5. Successor Agency staff is hereby authorized and directed to post a copy of the
Oversight Board-approved ROPS on the Successor Agency’s internet website.
6. Successor Agency staff is hereby authorized and directed to do any and all things
deemed necessary or advisable to effectuate implementation of this Resolution,
including requesting additional review by the Department of Finance and an
opportunity to meet and confer on any disputed items.
On motion of Board Member , seconded by Board Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 12th day of January 2021.
Item 8.c. - Page 7
RESOLUTION NO. SA-2021-XXX
PAGE 2
_________________________________
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________
ANNAMARIE PORTER, INTERIM SECRETARY
APPROVED AS TO FORM:
_________________________________
TIMOTHY J. CARMEL, GENERAL COUNSEL
Item 8.c. - Page 8
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