08d EOPSMEMORANDUM
TO: CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF
DIRECTORS A
FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICE
SUBJECT: ADOPTION BY REDEVELOPMENT AGENCY OF A RESOLUTION
APPROVING AND ADOPTING AN UPDATED ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE (EOPS) AND TRANSMITTAL
OF ADOPTED EOPS TO, AND RECEIPT BY, CITY COUNCIL
DATE: JANUARY 24,2012
RECOMMENDATION:
It is recommended (1) the Redevelopment Agency Board adopt a Resolution
approving and adopting an Updated Enforceable Obligation Payment Schedule
(EOPS) in order to comply with AB X1 26, (2) the Redevelopment Agency Board
transmit the adopted EOPS to the City Council, and (3) the City Council receive the
transmittal of the adopted EOPS from the Redevelopment Agency.
IMPACT ON FINANCIAL AND PERSONNEL RESOLIRCES:
The EOPS lists the payment obligations that the Redevelopment Agency (RDA) and
its successor agency (the City) will be able to pay until the recognized obligation
payment schedule (ROPS) has been prepared, certified, and approved by the
oversight board. If accepted, this will result in additional payments of approximately
$1.7 million from tax increment funds this fiscal year. Of this amount approximately
$920,000 is attributed to a loan to the RDA agency from the City. Given the lack of
clarity within the provisions of the State legislation the amount of reimbursement that
will be approved is unknown at this time.
Minimal future staff time is projected with respect to the EOPS.
BACKGROUND:
On August 23, 201 1, the Agency Board approved the RDA's first EOPS for August
201 1 through December 31, 201 1. As a result of the implementation of AB X1 26
and the California Supreme Court decision, all California redevelopment agencies will
now be dissolved effective February 1, 2012. 'The RDA and the City, as the
successor agency, can only make payments based on the EOPS until a ROPS has
Agenda Item 8.d.Page 1
CITY COUNCIL
ADOPTION OF A RESOLU'TION UPDATING 'THE ENFORCEABLE OBLIGATION
PAYMENT SCHEDULE (EOPS)
JANUARY 24,201 2
PAGE 2
been prepared and approved by the Oversight Board that is established pursuant to
the provisions of AB X1 26.
ANALYSIS OF ISSUES:
In order to cover the gap left between the December 31, 2011 date and the approval
of the ROPS by the Oversight Board as set forth in the State legislation, an amended
EOPS should be adopted no later than February 1, 2012. The EOPS must list all
obligations defined as "enforceable obligations" which includes all bonds, loans of
money from the agency, payments required by law, judgments or settlements, and
any other agreement or contract for the period of January 1, 2012 through June 30,
2012. Once the EOPS is adopted the agency will not be able to make a payment
unless it is listed in the schedule and the EOPS must be placed on the RDA/City8s
website, transmitted to the County Auditor-Controller, the State Controller, and the
State Department of Finance.
ALTERNATIVES:
The following alternatives are presented for consideration: - Approve staffs re'commendations to adopt the Resolution approving the
updated EOPS, transmitting the approved EOPS to the City Council, and
confirming receipt of the transmittal of the approved EOPS by the City Council; - Do not adopt the EOPS; or - Provide staff other direction.
ADVANTAGES:
Adoption of the updated EOPS will allow the Agency and the City (as the successor
agency) to continue to pay its contractual obligations.
DISADVANTAGES:
The updated EOPS will restrict funding to only those payments listed on the
schedule.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of the City Hall on Thursday, January 19, 2012 and
on the City's website on Friday, January 20, 2012.
Attachments:
1. Updated Enforceable Obligation Payment Schedule
Agenda Item 8.d.Page 2
RESOLUTION NO. RDA 12--
A RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF ARROYO GRANDE APPROVING AND
ADOPTING AN UPDATED ENFORCEABLE OBLIGATION
PAYMENT SCHEDULE, PURSUANT TO THE
PROVISIONS SET FORTH IN HEALTH AND SAFETY
CODE SECTION 34169 (AB 1X 26)
WHEREAS, by previous action duly and regularly taken, the City Council of the City of
Arroyo Grande ("City Council" or "City as appropriate) approved and adopted the
Redevelopment Plan for the Arroyo Grande Redevelopment Project, (collectively, the
"Redevelopment Plan"); and
WHEREAS, the Redevelopment Agency of the City of Arroyo Grande (the "Agency") is
responsible for implementing the Redevelopment Plan pursuant to the California
Community Redevelopment Law ("CRL"); and
WHEREAS, as part of the 201 1-12 State budget bill, the California Legislature enacted
and the Governor signed, ,from the 201 1-12 First Extraordinary Session, Assembly Bill
1X 26 ("A6 1X 26"), requiring that each redevelopment agency be dissolved; and
WHEREAS, on December 29, 201 1, the California Supreme Court upheld the validity
of AB 1X 26 and modified certain of the dates pertaining to actions related to the
dissolution of redevelopment agencies; and
WHEREAS, Health and Safety Code Section 34169, one of the sections added to the
CRL by AB 1X 26, requires the Agency to adopt an Enforceable Obligation Payment
Schedule listing all obligations that are enforceable within the meaning of Health and
Safety Code Section 34167(d) [also added to the CRL by AB 1X 261 and to designate
an official of the Agency whose responsibility shall be to provide information and
documentation for items listed in the Enforceable Obligation Payment Schedule; and
WHEREAS, Section 34169 permits the Enforceable Obligation Payment Schedule to be
amended by the Agency at a public meeting; and
WHEREAS, the Agency has prepared an updated Enforceable Obligation Payment
Schedule setting forth all of the obligations which the Agency has determined are
enforceable obligations under Health and Safety Code Sections 34167 and 34169
through June 30, 2012 as advised by the California Redevelopment Association and
Agency legal counsel;
NOW, THEREFORE, the Redevelopment Agency of the City of Arroyo Grande resolves
as follows:
Section 1. The foregoing Recitals are incorporated herein and made a part hereof.
Agenda Item 8.d.Page 3
RESOLUTION NO. RDA 12-
PAGE 2
Section 2. The Updated Enforceable Obligation Payment Schedule, in the form
presented concurrently with this Resolution, on file with the Agency Secretary, is hereby
approved and adopted.
Section 3. The Executive Director and his authorized designees are authorized and
directed to (1) post the Updated Enforceable Obligation Payment Schedule on the
Agency's and City's websites; (2) designate an Agency representative to whom all
questions regarding the Updated Enforceable Obligation Payment Schedule can be
directed; (3) notify, by mail or electronic means, the County Auditor-Controller, the State
Department of Finance, and the State Controller of the Agency's action adopting the
Updated Enforceable Obligation Payment Schedule and to provide those persons with
an address to the Agency and City's website and a telephone and email address for the
Agency's designated contact; and (4) to take other such actions and execute other such
documents as are appropriate to effectuate the intent of this Resolution and to
implement the Updated Enforceable Obligation Payment Schedule on behalf of the
Agency.
Section 4. The adoption of this Resolution by the Agency Board at the regular joint
meeting of the City Council and the Agency Board occurring on January 24, 2012 shall
constitute notice by the Agency Board to the City Council of its adoption as well as the
transmittal of the Updated Enforceable Obligation Payment Schedule to the City Council
as the "Successor Agency" to the Agency in light of the pending dissolution of the
Agency scheduled to take effect as of February 1,2012.
Section 4. The Agency Secretary shall certify to the adoption of this Resolution.
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 24~ day of January, 2012.
Agenda Item 8.d.Page 4
RESOLUTION NO. RDA 12-
PAGE 3
TONY FERRARA, CHAIR
ATTEST:
KELLY WETMORE, AGENCY SECRETARY
APPROVED AS TO CONTENT:
STEVEN ADAMS, EXECUTIVE DIRECTOR
APPROVED AS TO FORM:
TIMOTHY CARMEL, AGENCY COUNSEL
Agenda Item 8.d.Page 5
Name of Redevelopmenl Agemy Armyo Gde Redevelopmenl Agency
Project ARoyo Grande Redevelopmenl hDjeQ Area
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
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Name of Redevelopmenl Agemy Arroyo Grande Redevelopmenl Agency
Project Area@) hyo Grande Redevelopmenl Projecl Area
OTHER OBLIGATION PAYMENT SCHEDULE
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Agenda Item 8.d.Page 8