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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 Ag e n d a I t e m 8 . d . Pa g e 6 Name of Redevelopmenl Agemy Arroyo Grande Redevelopmenl Agency Project Area@) hyo Grande Redevelopmenl Projecl Area OTHER OBLIGATION PAYMENT SCHEDULE Ag e n d a I t e m 8 . d . Pa g e 7 THIS PAGE INTENTIO NALLY LEFT BLANK Agenda Item 8.d.Page 8