HomeMy WebLinkAboutSuccessor Agency Item 3SUCCESSOR AGENCY TO THE
SEAL BEACH REDEVELOPMENT AGENCY
AGENDA STAFF REPORT
DATE: February 13, 2017
TO: Honorable Chair and Board Members
THRU: Jill R. Ingram, Executive Director
FROM: Victoria L. Beatley, Finance Officer
SUBJECT: RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR FISCAL YEAR FROM JULY 19 2017 THROUGH
JUNE 309 2018
SUMMARY OF REQUEST:
That the Governing Board of the Successor Agency to the Seal Beach
Redevelopment Agency (the "Successor Agency") adopt Resolution
No. SA 17 -01, approving the Recognized Obligation Payment Schedule
( "ROPS ") for the period from July 1, 2017 through June 30, 2018 ( "ROPS 17-
18 ").
BACKGROUND AND ANALYSIS:
Pursuant to Section 34177 of the California Health and Safety Code ( "HSC "), the
Successor Agency must prepare a ROPS listing the anticipated payments for
enforceable obligations to be made during each specified fiscal period.
Previously, each BOPS covered a six -month period (commencing January 1 and
July 1, respectively). SB 107, which was enacted in September 2015, amended
HSC Section 34177, to provide that, beginning with fiscal year 2016 -17, the
Successor Agency must prepare a BOPS annually (instead of twice a year).
Deadline for ROPS Submission
All BOPS must be approved by the Oversight Board. Furthermore, each
Oversight Board - approved BOPS must be submitted to the State Department of
Finance (the "DOF ") for review. HSC Section 34177 also requires the Successor
Agency to submit an Oversight Board - approved BOPS 17 -18 to the DOF and to
the County Auditor - Controller no later than February 1, 2017. A copy of the
Oversight Board - approved BOPS must be posted on the Successor Agency's
website.
Agenda Item 3
The DOF may eliminate or modify any item on the BOPS before approving the
BOPS. The DOF must make its determination regarding the enforceable
obligations and the amount and funding source for each enforceable obligation
listed on BOPS 17 -18 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 BOPS 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
BOPS 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 at least 60 days before disbursements from the Redevelopment
Property Tax Trust Fund ( "RPTTF ") are required to be made.
The County Auditor - Controller is required to make RPTTF disbursements to the
Successor Agency pursuant to the DOF- approved BOPS 17 -18 on June 1, 2017
(to cover enforceable obligation payments from July 1, 2017 through December
31, 2017) and January 2, 2018 (to cover enforceable obligation payments from
January 1, 2018 through June 30, 2018).
Penalties for Failure to Make Timely Submission
If the Successor Agency does not submit an Oversight Board - approved ROPS
17 -18 by February 1, 2017, the City of Seal Beach will be subject to a civil
penalty of $10,000 per day for every day that ROPS 17 -18 is not submitted to the
DOF. The penalty will be paid to the County Auditor - Controller for distribution to
the taxing entities. If the Successor Agency does not timely submit BOPS 17 -18,
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 ROPS
17 -18 within 10 days of the February 1, 2017 deadline, the Successor Agency's
maximum administrative cost for that period will be reduced by 25 percent.
If the Successor Agency fails to submit an Oversight Board - approved BOPS 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 order
the County Auditor - Controller to withhold a scheduled RPTTF disbursement to
the Successor Agency pending the DOF's review of the related BOPS. (It is not
clear what is "the date upon which the ROPS is to be used to determine the
amount of property tax allocations." Possibly, it is referring to October 1 and April
1, the dates by which the County Auditor - Controller must prepare estimates for
the upcoming RPTTF disbursements on January 2 and June 1, respectively, and
provide the estimates to the DOF, the Successor Agency and the taxing entities.)
In conjunction with such a withholding, the DOF may order the County Auditor-
Page 2
Controller to disburse to the taxing entities money from the RPTTF that the DOF
determines to be in excess of the amount needed for enforceable obligations.
Prior Oversight Board Action
As discussed, the Successor Agency was required to submit an Oversight Board -
approved ROPS 17 -18 to the DOF by February 1, 2017 or risk subjecting the City
of Seal Beach and the Successor Agency to severe penalties. However, Staff
was not in a position to finalize BOPS 17 -18 in time for presentation to the
Successor Agency Board at its regular January 2017 meeting dates. The law
does not require the Successor Agency Board to approve BOPS 17 -18 before
the Oversight Board - approved BOPS 17 -18 is submitted to the DOF. Staff
presented BOPS 17 -18 to the Oversight Board at its January 30, 2017 meeting
and was able to submit the Oversight Board - approved BOPS 17 -18 to the DOF
before the February 1, 2017 deadline.
ENVIRONMENTAL IMPACT:
There is no environmental impact associated with adoption of the attached
Resolution.
LEGAL ANALYSIS:
General Counsel has reviewed and approved as to form.
FINANCIAL IMPACT:
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.
RECOMMENDATION:
That the Governing Board of the Successor Agency adopt Resolution
No. SA 17 -01, approving the BOPS 17 -18 and taking related actions.
SUBM BY:
vim-• �l".
Victoria L. Beatley,
Finance Officer
Attachment:
Resolution No. SA 17 -01
Page 3
NOTED AND APPROVED:
4�40
Patrick Gallegos
Assistant Executive Director
"Attachment A"
RESOLUTION NUMBER SA17 -01
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO SEAL BEACH REDEVELOPMENT
AGENCY APPROVING A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE FISCAL PERIOD FROM JULY
1, 2017 THROUGH JUNE 30, 2018 AND TAKING RELATED
ACTIONS
RECITALS:
A. Pursuant to Health and Safety Code Section 34177(o), the
Successor Agency to the Seal Beach Redevelopment Agency (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 BOPS 17 -18 to the oversight board of the Successor Agency
(the "Oversight Board ") for approval; and
B. Pursuant to Health and Safety Code Section 34177(1)(2), the
Successor Agency must submit BOPS 17 -18 to the Oversight Board of the
Successor Agency for approval;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY,
HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a
substantive part of this Resolution.
Section 2. BOPS 17 -18, substantially in the form attached hereto as
Exhibit A, is hereby approved. The Executive Director of the Successor Agency,
in consultation with the Successor Agency's legal counsel, may modify ROPS
17 -18 as the Executive Director or the Successor Agency's legal counsel deems
necessary or advisable.
Section 3. Staff is hereby authorized and directed to post a copy of the
Oversight Board - approved BOPS 17 -18 on the Successor Agency's Internet
website (being a page on the Internet website of the City of Seal Beach).
Section 4. The officers and the other Staff members 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 BOPS 17 -18 pursuant to the DOF's instructions, and any such
actions previously taken are hereby ratified and confirmed.
Resolution Number SA17 -01
PASSED, APPROVED and ADOPTED by the Successor Agency to the Seal
Beach Redevelopment Agency at a regular meeting held on the 13th day of
February, 2017 by the following vote:
AYES: Board Members
NOES: Board Members
ABSENT: Board Members
ABSTAIN: Board
Chair
ATTEST:
Secretary
Resolution Number SA17 -01
EXHIBIT A
SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(July 1, 2017 — June 30, 2018)
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Resolution Number SA17 -01
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin Roberts, Secretary of the Successor Agency to the Seal Beach
Redevelopment Agency, do hereby certify that the foregoing resolution is the
original copy of Resolution Number SA17- 01 on file in the office of the City Clerk
of the City of Seal Beach, passed, approved, and adopted by the Successor
Agency to the Seal Beach Redevelopment Agency at a regular meeting held on
the 13th day of February, 2017.