HomeMy WebLinkAboutItem 2OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
TO THE SEAL BEACH REDEVELOPMENT AGENCY
AGENDA STAFF REPORT
DATE: January 23, 2018
TO: Oversight Board Members
FROM: Victoria L. Beatley, Staff Member
SUBJECT: RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR JULY 1, 2018 THROUGH JUNE 30, 2019
SUMMARY OF REQUEST:
Staff recommends that the Oversight Board for the Successor Agency to the Seal
Beach Redevelopment Agency (the "Oversight Board") adopt Resolution No. OB
18-01 approving the Recognized Obligation Payment Schedule for the annual
period from July 1, 2018 through June 30, 2019 ("ROPS 18-19").
BACKGROUND AND ANALYSIS:
Pursuant to Section 34177 of the Health and Safety Code ("HSC"), in order to
make payments on enforceable obligations, the Successor Agency must prepare
a Recognized Obligation Payment Schedule ("ROPS") for specified fiscal
periods. Previously, each ROPS 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).
All ROPS must be approved by the Oversight Board. Furthermore, each
Oversight Board -approved BOPS must be submitted to the DOF for review.
HSC Section 34177 also requires the Successor Agency to submit an Oversight
Board -approved ROPS to the DOF and to the County Auditor -Controller no later
than February 1, 2018. A copy of the Oversight Board -approved ROPS must be
posted on the Successor Agency's website.
The DOF may eliminate or modify any item on the ROPS before approving the
ROPS. The DOF must make its determination regarding the enforceable
obligations and the amount and funding source for each enforceable obligation
listed on BOPS 18-19 no later than April 15, 2018. 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,
Agenda Item 2
but an untimely submission of ROPS 18-19 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
ROPS 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 ROPS 18-19 on June 1, 2018
(to cover enforceable obligation payments from July 1, 2017 through December
31, 2018) and January 2, 2019 (to cover enforceable obligation payments from
January 1, 2019 through June 30, 2019).
Penalties for Failure to Make Timely Submission
If the Successor Agency does not submit an Oversight Board -approved ROPS
18-19 by February 1, 2018, the City of Seal Beach will be subject to a civil
penalty of $10,000 per day for every day that ROPS 18-19 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 ROPS 18-19,
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
18.19 within 10 days of the February 1, 2018 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 ROPS 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 DOFs 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 -
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.
Staff recommends that the Oversight Board adopt Resolution OB 18-01
approving ROPS 18-19 and taking certain related actions.
Page 2
FISCAL IMPACT:
The preparation and submittal of ROPS 18-19 is for the purpose of allowing the
Successor Agency to pay its enforceable obligations for the period from July 1,
2018 to June 30, 2019.
It is recommended that the Oversight Board adopt Resolution No. OB 18-01,
approving the ROPS 18-19 and taking related actions.
Attachments:
Resolution No. OB 18-01
Exhibit A - Recognized Obligation Payment Schedule for July 1, 2018 through
June 30, 2019
Page 3
RESOLUTION NUMBER OB 18-01
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY
APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE FISCAL PERIOD FROM JULY 1, 2018 THROUGH JUNE 30,
2019, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177
AND TAKING CERTAIN RELATED ACTIONS
RECITALS:
A. Pursuant to Health and Safety Code Section 34177(0), 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, 2018 through June 30, 2019 ("ROPS 18-19") and submit ROPS 18-19 to
the oversight board of the Successor Agency (the "Oversight Board") for approval.
B. Pursuant to Health and Safety Code Section 34177(I)(2)(C) and Section
34177(0)(1), the Successor Agency must: (i) submit the Oversight Board -approved
ROPS 18-19 to the DOF, the Office of the State Controller, and the County Auditor -
Controller no later than February 1, 2018, and (ii) post a copy of the Oversight Board -
approved ROPS 18-19 on the Successor Agency's website.
NOW, THEREFORE, THE OVERSIGHT BOARD 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. The Oversight Board hereby approves the proposed ROPS 18-19,
substantially in the form attached hereto as Exhibit A. Staff of the Successor Agency is
hereby authorized and directed to: (i) submit a copy of Oversight Board -approved
ROPS 18-19 to the DOF, the Office of the State Controller, and the County Auditor -
Controller and (ii) past a copy of the Oversight Board -approved 18-19 on the Successor
Agency's Internet website (being a page on the Internet website of the City of Seal
Beach).
Section 3. The Staff 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 18-19 pursuant to the DOF's instructions, and
any such actions previously taken are hereby ratified and confirmed.
Resolution Number OB18-01
PASSED, APPROVED AND ADOPTED by the Oversight Board at a meeting
held on the 23rd day of January, 2018.
AYES: Board Members:
NOES: Board Members:
ABSENT: Board Members:
Vice Chair, Oversight Board
ATTEST:
Secretary, Oversight Board
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
I, Robin L. Roberts, Secretary to the Oversight Board, hereby certify that the foregoing
resolution was duly adopted at a meeting of the Oversight Board, held on the 23rd day
of January, 2018.
Secretary, Oversight Board
EXHIBIT A
SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(July 1, 2018 - June 30, 2019)
|
«
of
#!�
�
°
2n■
L
-!,
L
-!,
/{)
!f!;
|2
�\
\}\}.
!
)`)
z
!.
&4
-
)(
� ..
-
$\n
«f!`�||/'�
0)
\
_
�
/
-
(|
!)|
a X g
7\
2)
�! B
E
f \`1
($
|•!
��
�
#f
|
!4
-
..
-|•
.
222
/
ON
!!
k,