HomeMy WebLinkAbout2012-06-12 OB Agenda Item No. 3OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE
TO: MEMBERS OF THE OVERSIGHT BOARD
FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL
DATE: JUNE 12, 2012
SUBJECT: APPROVAL OF RESOLUTION APPROVING THE SECOND AMENDED
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD
OF JANUARY 2012 THROUGH JUNE 2012 AND FIRST AMENDED
RECOGNIZED OBLIGATION PAYMENT SCHEDULE THE PERIOD OF
JULY 2012 THROUGH DECEMBER 2012
Background
On April 10, 2012 the Oversight Board ( "OB ") approved the Recognized Obligation
Payment Schedule ( "ROPS ") adopted by the Successor Agency on February 28, 2012
for expenditures of the Successor Agency of the Redevelopment Agency of the City of
Lake Elsinore ( "Successor Agency ") from January 1, 2012 to June 30, 2012. On that
same day, the Successor Agency adopted and the OB approved a First Amended
ROPS dated April 10, 2012.
As required by Assembly Bill x1 26 ( "ABx1 26 "), the First Amended ROPS was
submitted to the State Department of Finance ( "DOF ") and the County Auditor
Controller ( "CAC ") by April 15, 2012. On April 19, 2012, the Director of Administrative
Services received an email from the Department of Finance (DOF) indicating it was
reviewing certain items listed on the Successor Agency's Recognized Obligation
Payment Schedule (BOPS), as approved by the OB on April 10, 2012.
On April 27, 2012, the Director of Administrative Services received a letter from the
Department of Finance indicating that DOF determined the administrative cost budget
for fiscal 2012 to exceed that permitted by statute and denying the excess
administrative costs as enforceable obligations on the First Amended ROPS for January
through June 2012.
On May 8, 2012, the Oversight Board approved the ROPS for July through December
2012 with reduced amounts of project related legal fees on page 1 of the ROPS and
revised descriptions for other project costs. A response was submitted to DOF on May
9, 2012 with the July through December ROPS in an effort to address DOF's
comments.
AGENDA ITEM 3 Page 1
Approval of Amended Recognized Obligation Payment Schedules
June 12, 2012
Page 2
Discussion
On May 17, 2012, after a telephone discussion with DOF, the Director of Administrative
Services submitted hand - written corrections on the ROPS for January through June
2012. The transmittal indicated that the changes had not been approved by the
Successor Agency or the OB. The corrections requested by DOF clarify that certain
payments due to the Riverside County Flood Control are not to be made from current or
future receipts of Real Property Tax Trust Fund monies.
The Director of Administrative Services received a letter from DOF dated May 24, 2012
approving the ROPS for January through June 2012 submitted with hand - written
corrections and the ROPS for July through December 2012.
The Second Amended ROPS for January through June 2012 presented for OB approval
incorporates those changes previously approved by DOF.
The First Amended ROPS for July though December 2012 presented for OB approval
does not include any substantive changes, but does correct the mathematical errors in
the column marked "Total Due During Fiscal Year 2012- 2013" to reflect the full fiscal
year obligations.
Recommendation
Approve Resolution No, OB- 2012 -009 approving the Second Amended Recognized
Obligation Payment Schedule for the period of January 2012 through June 2012 and
the First Amended Recognized Obligation Payment Schedule for the period of July
2012 through December 2012, subject to adoption by the Successor Agency.
Prepared and approved by: Barbara Leibold,
City Attorney /Successor Agency Counsel
Attachments: Resolution No. OB- 2012 -009 approving the Second Amended
Recognized Obligation Payment Schedule for the Period of January
2012 through June 2012 and the First Amended Recognized
Obligation Payment Schedule for the period of July 2012 through
December 2012, subject to adoption by the Successor Agency
AGENDA ITEM 3 Page 2
RESOLUTION NO. OB-2012-009
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE APPROVING THE SECOND
AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(ROPS) FOR THE PERIOD OF JANUARY 2012 THROUGH JUNE
2012 AND FIRST AMENDED RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JULY 2012
THROUGH DECEMBER 2012, SUBJECT TO ADOPTION BY THE
SUCCESSOR AGENCY
WHEREAS, the Oversight Board to the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore ( "Oversight Board ") has been established to direct
the Successor Agency to take certain actions to wind down the affairs of the former
Redevelopment Agency of the City of Lake Elsinore in accordance with the California
Health and Safety Code; and
WHEREAS, Health and Safety Code Section 34169 requires the Successor
Agency to prepare and adopt a "Recognized Obligation Payment Schedule" that lists all
obligations of the former redevelopment agency that are enforceable within the meaning
of subdivision (d) of Section 34167 for six month periods including January 2012
through June 2012 and July 2012 through December 2012; and
WHEREAS, on April 10, 2012, the Oversight Board adopted Resolution No. OB
2012 -006 approving a Recognized Obligation Payment Schedule for the period of
January 2012 through June 2012 and a First Amended Recognized Obligation Payment
Schedule for the period of January 2012 through June 2012; and
WHEREAS, on May 8, 2012, the Oversight Board adopted Resolution No. OB
2012 -008 approving a Recognized Obligation Payment Schedule for the period of July
2012 through December 2012; and
WHEREAS, on May 24, 2012, the Department of Finance approved both the
Recognized Obligation Payment Schedule for the period January 2012 through June
2012 including hand - written corrections submitted by the Director of Administrative
Services and the Recognized Obligation Payment Schedule for the period of July 2012
through December 2012; and
WHEREAS, the Oversight Board desires to approve a Second Amended
Recognized Obligation Payment Schedule for the period January 2012 through June
2012 to incorporate the corrections approved by the Department of Finance and a First
Amended Recognized Obligation Payment Schedule for the period of July 2012 through
December 2012 to correct mathematical errors in the column marked "Total Due During
Fiscal Year 2012 - 2013" to reflect the full fiscal year obligations; and
AGENDA ITEM 3 Page 3
OVERSIGHT BOARD RESOLUTION NO.OB 2012 -009
Page 2
WHEREAS, on June 12, 2012, the Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore will consider adoption of the Second Amended
Recognized Obligation Payment Schedule for the period of January 2012 through June
2012 incorporating the changes approved by the Department of Finance and a First
Amended Recognized Obligation Payment Schedule for the period of July 2012 through
December 2012 correcting certain mathematical errors; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR
AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
SECTION 2. In order to enable the City of Lake Elsinore, as Successor Agency
to strictly comply with AB X1 26, and based on the Recitals set forth above, the
Oversight Board hereby approves (i) the Schedule attached hereto as Exhibit A as the
Second Amended Recognized Obligation Payment Schedule for January 2012 through
June 2012, which such amended version is approved subject to the adoption thereof by
the Successor Agency; and (ii) the Schedule attached hereto as Exhibit B as the First
Amended Recognized Obligation Payment Schedule for July 2012 through December
2012, which such amended version is approved subject to the adoption thereof by the
Successor Agency. Pursuant to Health & Safety Code Section 34173, the Successor
Agency's liability, including, but not limited to, its liability for the obligations on the
attached schedule is limited to the total sum of property tax revenues it receives
pursuant to Part 1.85 of AB X1 26.
SECTION 3. Pursuant to Health & Safety Code Section 34180(g), the Oversight
Board hereby establishes the Recognized Obligation Payment Schedule (ROPS), for
the period of January 2012 through June 2012, as the Second Amended Recognized
Obligation Payment Schedule and the Recognized Obligation Payment Schedule
(ROPS for the period of July 2012 through December 2012, as the First Amended
Recognized Obligation Payment Schedule.
SECTION 4. If any provision of this Resolution or the application thereof to any
person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Resolution which can be given effect without the invalid provision or
application, and to this end the provisions of this resolution are severable. The
Oversight Board hereby declares that it would have adopted this Resolution irrespective
of the invalidity of any particular portion thereof.
AGENDA ITEM 3 Page 4
OVERSIGHT BOARD RESOLUTION NO. OB 2012 -009
Page 2
SECTION 6. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight
Board to the Successor Agency of the Redevelopment Agency of the City of Lake
Elsinore, held this 12°' day of June, 2012 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Chairperson, Oversight Board to the
Successor Agency of the Redevelopment
Agency of the City of Lake Elsinore
ATTEST:
Oversight Board Secretary
AGENDA ITEM 3 Page 5