12.b. ROPS and Appts to Oversight BoardMEMORANDUM
TO: CITY COUNCIL, AS SUCCESSOR AGENCY TO THE DISSOLVED
ARROYO GRANDE REDEVELOPMENT AGENCY (RDA)
FROM: ANGELA KRAETscH, DIRECTOR OF ADMINIsTRI\TIvE SERVICES$&
SUBJECT: CONSIDERATION OF APPROVAL OF THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (ROPS) AND THE MAYOR'S
APPOINTMENTS TO THE OVERSIGHT BOARD
DATE: FEBRUARY 28,2012
RECOMMENDATION:
It is recommended the City Council, acting as the Successor Agency to the dissolved
Redevelopment Agency: (1) approve the Recognized Obligation Payment Schedule
(ROPS); and (2) approve Mayor Ferrara and Michelle Mayfield as the Mayor's
appointments to the Oversight Board.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The ROPS lists the payment obligations that the Successor Agency to the dissolved
Redevelopment Agency (RDA) will be able to pay once the recognized obligation
payment schedule (ROPS) has been certified by the County Auditor-Controller and
approved by the Oversight Board. The ROPS includes a proposed payment amount
of $1,447,361 over the six month period.
The ROPS includes an estimate of 716 hours per month of staff time devoted to
activities related to the RDA dissolution process. However, reimbursement for the
cost of this staff time is proposed from the Successor Agency to the former RDA
fund.
BACKGROUND:
On December 29, 201 1, the California Supreme Court upheld the validity of AB 1x26,
the bill that dissolved all redevelopment agencies in the State. On January 10, 2012
the City Council elected to serve as the Successor Agency of the dissolved
Redevelopment Agency. As of February 1, 201 2, the City's Redevelopment Agency
was dissolved and the assets and functions were transferred to the Successor
Agency. The City, as the Successor Agency, will make payments based on the
ROPS once it has been certified by the County Auditor-Controller and approved by
Agenda Item 12.b.
Page 1
CITY COLlNClL
APPROVAL OF THE RECOGNIZED OBLIGA'TION PAYMENT SCHEDULE (ROPS)
AND THE MAYOR'S APPOINTMENTS TO THE OVERSIGHT BOARD
FEBRUARY 28,2012
PAGE 2
the Oversight Board. As part of AB 1x26, an Oversight Board is to be established to
review and approve actions of the Successor Agency in the dissolution process.
ANALYSIS OF ISSUES:
The Successor Agency must prepare an initial ROPS and an administrative budget.
The ROPS is required to cover the six-month period from January 1, 2012 through
June 30, 2012. It is also suggested, due to the late formation of the Oversight Board,
that the Agency prepare an additional ROPs (or include it in the initial ROPS) to
cover the next six-month period from July 1, 2012 through December 31, 2012. The
ROPS must be approved by the City council, as the successor Agency by March 1,
201 2.
Although, the Oversight Board is required to meet and select a Chair by May 1, 2012,
it technically must be in place prior to that in order to meet the deadline for approving
the ROPS, which is April 15, 2012.
The Oversight Board is a made up of seven members:
o Two members appointed by the Mayor
1. One Mayoral appointee may be any person (including himself)
2. The other Mayoral appointee must be a former RDA employee
from the largest recognized employee organization (or in Arroyo
Grande's case, an employee represented by one of the City's
unions and whose salary was partially paid from RDA funds)
o Two members appointed by the County Board of Supervisors
1. One appointee may be any person
2. The second appointee must be a "member of the public"
o One member appointed by the Superintendent of the County Office of
Education
o One member appointed by the largest special district, by property tax
share, with territory within the "territorial jurisdiction" of the former RDA
o One member appointed by the Chancellor of the California Community
Colleges.
The Mayor has selected the following two members to sit on the Oversight Board:
1. Tony Ferrara, Mayor
2. Michelle Mayfield, City TreasurerIPayroll Clerk
Other agencies are being contacted to obtain names of their appointees.
Agenda Item 12.b.
Page 2
CITY COUNCIL
APPROVAL OF THE RECOGNIZED OBLIGA'TION PAYMENT SCHEDULE (ROPS)
AND THE MAYOR'S APPOINTMENTS TO THE OVERSIGHT BOARD
FEBRUARY 28,2012
PAGE 3
ALTERNATIVES:
The following alternatives are presented for consideration:
- Approve the ROPS and the Mayor's appointments to the Oversight Board;
- Do not approve the ROPS and the Mayor's appointments to the Oversight
Board; or
- Provide staff other direction.
ADVANTAGES:
Approval of the ROPS will allow the City (as the Successor Agency) to continue to
pay its contractual obligations. Timely appointments to the Oversight Board will allow
the Board to become functioning as soon after March 1'' as possible.
DISADVANTAGES:
By law, the ROPS restricts funding to only those enforceable obligations 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, February 23, 2012 and
on the City's website on Friday, February 24, 2012.
Attachments:
1. Recognized Obligation Payment Schedule
Agenda Item 12.b.
Page 3
Succaslor Ageq Oh of Annvo Grande
Name ol Redevelopmenl Ageny Armyo Grande Redevelopmenl Aqew
Pmjea Area@) Am Grande Redevebpmenl Pmlec! Area
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
January 2012 -June 2012
(1) The npures in this document are estimates only. The actual payment obligations may be hlgher or lower.
(2) Paymen& shown for lune 2012 (e.g., by lune 30. 2012) may be made at any tlme from lanuay 1, 2012 through lune 30, 2012.
Ag
e
n
d
a
I
t
e
m
1
2
.
b
.
Pa
g
e
4
Succarsor Ageny CIW of Arroyo Grande
Nome of Redevelopmsnl Agem Arroyo Grande Redevelopmenl Agency
Prolea Ana(s) ~rroyo Grande Redevebpmenl Proiea Area
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
July 2012-December 2012
(1) The flgures in this dmment are estimates only The'aaual payment obligaoons may be higher or lower.
(2) Payments shown for June 2013 (e.g., by June 30, 2013) may be made at any tlme from July 1, 2012 through June 30, 2013
Ag
e
n
d
a
I
t
e
m
1
2
.
b
.
Pa
g
e
5
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
BY FISCAL YEAR
I
hied Name I Deb1 Obl~qaLmn 2011-12 2012-13 201114 2014-15 201618 201617 2017-18 2016-19 201920 202421 2021-22 2022-23 202524 2024-25 202528 202627 2027-28
I
51 I Purchase of land I I 1 892.877 1 I I I I I I I I I I I I I
8) I police Slatlon 1 87.052 1 58.138 1 !
1)
2)
3)
4)
(1) The flgures In th~s document are estimates only. The actual payment obligations may be higher or lower.
2007 Tar AllocaUon Bonds
Cily loan entered inlo on 7-2108
Lease of Park~ng Lol
Lease of Perkmg Lot
9)
lo)
11)
12)
13)
S 454,032
24,000
4,880
Hslom Conlext Slalemenl
Habllal lor Humen~lv pmjed
Low and MMarata lnmme Hwslnc
AdminlstraWe CosW
Employee Admln CDsU
S 453.D
919.797
24,000
4.880
13.138
285.544
104.187
24.088
S 452,383
24.000
4,880
280.000
288.199
250,WO
S 451,131
24.000
4.880
270.881
250.000
S 454,501
24.000
4.880
273.590
250.000
S 452.473
24.000
4.880
278.328
250.000
5 450,180
24.000
4.880
279.089
250.000
S 452.489
24.000
4.880
281.880
250.000
6 449.401
24.000
4.880
264.699
250.WO
S 450.505
14.000
4.880
287.548
250.000
S 450.645
280,421
250.000
S 450.205
293.325
250.000
5 449.185
290.258
250.000
S 447.585
299.221
250.000
S 450.280
302.213
250.000
S 447.210
305.235
250.000
S 448,435
308.287
250.000
310.445
250.W
Ag
e
n
d
a
I
t
e
m
1
2
.
b
.
Pa
g
e
6
pun j ISNL xsl Uedwd luarudolaAePe8 eu
SP~W~ elms lesv
pun4 ISN~ xel wadwd luawdola~epatl eu
luadsd 10
000'OCz
~~~'616
~LB'OZL'ZL s
la01
- s
ZPLWZ
- s
LWWZ
- I
OHEOZ
- s
6CBCOZ
~QV'ZVP s
BE-LCOZ
589'1~~ s
LCBCOZ
S~S'WV I
BECEOZ
SE'BPP s
SCOEOZ
SCB'QW s
E-CSOZ
SBE'QW s
tE-ZCOZ
m'm s
ZC-LCOZ
068'8~~ s
LCOmZ
SLZ'BW s
OCdZOZ
OBL'BPV s
6ZBZOZ
101 bUWBd I0 esaal
B(KZ-L uo olu! pe~ue us01 "113
spuw WWIV xel LOOZ
uo~le~rlqOlqeOI~~~N~e~'U
(C
(2
(L
Ag
e
n
d
a
I
t
e
m
1
2
.
b
.
Pa
g
e
7
THIS PAGE INTENTIO NALLY LEFT BLANK
Agenda Item 12.b.
Page 8