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Home My WebLink AboutItem No. 16 Amend ROPS 20-21B Jan. 1, 2021 through June 30, 2021City Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 19-735 Agenda Date: 9/8/2020 Status: Approval FinalVersion: 1 File Type: Successor Consent Calendar In Control: City Council / Successor Agency Agenda Number: 16) Amended Recognized Obligation Payment Schedule (ROPS 20-21B) for the period January 1, 2021 through June 30, 2021 Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 20-21B) FOR JANUARY 1, 2021 THROUGH JUNE 30, 2021. Page 1 City of Lake Elsinore Printed on 9/3/2020 Page 1 of 3 REPORT TO SUCCESSOR AGENCY To: Honorable Chair and Members of the Successor Agency From: Grant Yates, Executive Director Prepared by: Barbara Leibold, Successor Agency Counsel Date: September 8, 2020 Subject: Amended Recognized Obligation Payment Schedule (ROPS 20-21B) for the period January 1, 2021 through June 30, 2021 Recommendation Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 20-21B) FOR JANUARY 1, 2021 THROUGH JUNE 30, 2021. Background The former Redevelopment Agency for Lake Elsinore (“Former Agency”) was formed, existed and exercised its powers pursuant to the Community Redevelopment law (California Health and Safety Code section 33000 et seq.). Pursuant to Assembly Bill No. 1X 26, as modified by Assembly Bill No. 1484 enacted on June 27, 2012, and as further modified by Senate Bill No. 107 enacted September 22, 2015, which added or amended Parts 1.8 and 1.85 to Division 24 of the Health and Safet y Code (“Dissolution Act”), the Former Agency was dissolved on February 1, 2012 and the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) was vested with all authority, rights, powers, duties and obligations of the Former Agency. Successor Agency staff has prepared the proposed Amended Recognized Obligation Payment Schedule (20-21B) for the period of January 1, 2021 through June 30, 2021 ("Amended ROPS FY 20-21B"), substantially in the form attached hereto and incorporated herein by this reference. No new enforceable obligations are included in Amended ROPS FY 20-21B that were not included in the previously adopted ROPS. Pursuant to Section 34177 and 34180(g) of the Health and Safety Code, the Amended ROPS FY 20-21B has been submitted to the Countywide Oversight Board for consideration and approval at its September 17, 2020 meeting. Amended ROPS 20-21B September 8, 2020 Page 2 of 3 Discussion The Amended ROPS FY 20-21B requests additional Redevelopment Property Tax Trust Fund ("RPTTF") monies for the following enforceable obligations: ROPS ITEMS 12 AND 13 – SUMMERLY DDA OBLIGATIONS Since the dissolution of the former Redevelopment Agency, the irrevocable pledge of property tax increment set forth in the Amended and Restated Disposition and Development Agreement (“Summerly DDA”) has been listed on the Successor Agency ROPS (lines 12 and 13) and recognized as an enforceable obligation. In 2015, the California Department of Finance (“DOF”) issued a final and conclusive determination regarding the Summerly DDA, finding both ROPS items to be enforceable obligations. Accordingly, DOF’s review of lines 12 and 13 is limited to confirmation that the amounts are calculated in accordance with the Summerly DDA. The Successor Agency’s obligations pursuant to the Summerly DDA are determined annually based upon calculations of property tax receipts. Because the County tax roll data is not available until after DOF’s approval of the ROPS, the Successor Agency annually estimates the Summerly DDA obligations in the ROPS and then reconciles by making necessary adjustments in the Amended ROPS submittal based on actual property tax receipts. Consequently, the Successor Agency has determined that the RPTTF requests for ROPS 20-21 (Items 12 and 13 - Summerly DDA) require adjustment based on actual property tax receipts to date as set forth in the attached ROPS FY 20-21B submitted for Successor Agency approval. Amounts requested for the RPTTF Funding for ROPS Items 12 and 13 reflect the actual amounts due to the Master Developer/Developer for the Summerly Obligations on or after February 1, 2021 and are in excess of the initial projections. Amounts requested for the Reserve Balance for ROPS Items 12 and 13 also reflect the actual amounts due to the Master Developer/Developer for the Summerly Obligations on or after February 1, 2021 and were not reflected in the initial projections in ROPS 20-21. ROPS ITEM 33 – INTERIM STADIUM MANAGEMENT AGREEMENT Since the dissolution of the former Redevelopment Agency, the use of property tax increment to maintain the Lake Elsinore Diamond Stadium has been listed on the Successor Agency ROPS (lines 29 and 33) and recognized as an enforceable obligation by the form er Oversight Board to the Successor Agency and California Department of Finance. The Successor Agency’s obligations pursuant to the Lake Elsinore Diamond Stadium are determined annually based upon an Interim Stadium Management Agreement that includes maintenance and management fees as well as budget estimates for necessary capital repairs. The Successor Agency has determined that the RPTTF request for ROPS 20-21 (Items 33 – Interim Stadium Management Agreement) is insufficient and that additional RPTTF funds are necessary to cover unbudgeted emergency/necessary repairs (i.e. plumbing, netting required by minor league baseball, parking lot perimeter fencing necessary to mitigate vandalism & theft) and to cover the actual costs of budgeted capital items that exceeded initial estimates (i.e. tree replacement). Amended ROPS 20-21B September 8, 2020 Page 3 of 3 CEQA Exemption Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter as it relates to the adoption of the Amended ROPS FY 20-21B, the Successor Agency has determined that such approval is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that the activities in question will have a significant impact on the environment and the amendment is merely the adoption of annual budget; it will not require any construction activities and will not lead to any direct or reasonably foreseeable indirect physical environmental impacts. Attachments: A. Resolution No. 2020-0 of the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore Approving Amended ROPS 20-21B for January 1, 2021 through June 30, 2021 B. Amended ROPS FY 20-21B RESOLUTION NO. SA-2020-___ A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 20-21B) FOR JANUARY 1, 2021 THROUGH JUNE 30, 2021 WHEREAS, the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) is charged with implementing enforceable obligations and winding down the affairs of the former Redevelopment Agency of the City of Lake Elsinore (the “Agency”) in accordance with the California Health & Safety Code; and, WHEREAS, Senate Bill (SB) 107, enacted in September 2016, added Health & Safety Code (“HSC”) Section 34177(o) requiring 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 34171 for twelve month periods, including July 2020 through June 2021; and, WHEREAS, SB 107 permits an amended ROPS 20-21B for the period January 1, 2021 through June 30, 2021 to be submitted to the Department of Finance and the State Controller’s office, after approval by the Oversight Board, no later than October 1, 2020 or be subject to penalties; and, WHEREAS, HSC Section 34177.7(o)(1)(E), permits an Amended ROPS 20-21B provided that the Oversight Board makes a finding that a revision to the ROPS is necessary for the payment of approved enforceable obligations during the ROPS 20-21B period, and, WHEREAS, on September 17, 2020, the Countywide Oversight Board of the County of Riverside will consider making the finding that a revision to ROPS 20-21 is necessary for the payment of enforceable obligations during the second half of the ROPS period and consider the approval of the Amended Recognized Obligation Payment Schedule (ROPS 20-21B) for January 1, 2021 through June 30, 2021, in the form attached as Exhibit A; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, 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. The Successor Agency hereby approves the Schedule attached hereto as Exhibit A as the Amended Recognized Obligation Payment Schedule 20-21B for the period January 1, 2021 through June 30, 2021. 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. Resolution No. SA-2020-___ Page 2 of 4 Section 3. Executive Director Yates, or his designee, is hereby authorized to submit the ROPS to such parties as may be required in accordance with the Health & Safety Code, and to take such other actions on behalf of the Successor Agency with respect to the ROPS as may be necessary in accordance with applicable law. 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 Successor Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 5. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code. PASSED, APPROVED AND ADOPTED by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 8th day of September, 2020. Brian Tisdale, Chair ATTEST: Candice Alvarez, MMC Secretary APPROVED AS TO FORM: Barbara Leibold, Agency Counsel Resolution No. SA-2020-___ Page 3 of 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Mark Mahan, Deputy Secretary to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. SA-2020- was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore at a Regular meeting held on the 8th day of September, 2020 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Mark Mahan Deputy Secretary EXHIBIT A AMENDED ROPS 20-21B [attached] Amended Recognized Obligation Payment Schedule (ROPS 20-21B) - Summary Filed for the January 1, 2021 through June 30, 2021 Period Successor Agency: Lake Elsinore County: Riverside Current Period Requested Funding for Enforceable Obligations (ROPS Detail) ROPS 20-21B Authorized Amounts ROPS 20-21B Requested Adjustments ROPS 20-21B Amended Total A Enforceable Obligations Funded as Follows (B+C+D) $ 662,124 $ 1,796,086 $ 2,458,210 B Bond Proceeds - - - C Reserve Balance 387,663 1,796,086 2,183,749 D Other Funds 274,461 - 274,461 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 6,756,908 $ 758,152 $ 7,515,060 F RPTTF 6,566,043 758,152 7,324,195 G Administrative RPTTF 190,865 - 190,865 H Current Period Enforceable Obligations (A+E) $ 7,419,032 $ 2,554,238 $ 9,973,270 Certification of Oversight Board Chairman: Name Title Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. /s/ Signature Date Lake Elsinore Amended Recognized Obligation Payment Schedule (ROPS 20-21B) - ROPS Detail January 1, 2021 through June 30, 2021 Item # Project Name Obligation Type Total Outstanding Obligation Authorized Amounts Total Requested Adjustments Total Notes Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $166,360,381 $- $387,663 $274,461 $6,566,043 $190,865 $7,419,032 $- $1,796,086 $- $758,152 $- $2,554,238 1 Tax Allocation Revenue Bonds, 2010 Series A Bonds Issued On or Before 12/31/10 $- - - - - - $- - - - - - $- 2 Tax Allocation Revenue Bonds, 2010 Series B Bonds Issued On or Before 12/31/10 $- - - - - - $- - - - - - $- 3 Tax Allocation Revenue Bonds, 2010 Series C Bonds Issued On or Before 12/31/10 $24,412,401 - 387,663 - - - $387,663 - - - - - $- 12 Summerly DDA OPA/DDA/ Construction $51,455,929 - - - 850,283 - $850,283 - 1,667,369 - 99,017 - $1,766,386 Amounts requested from Reserve Balance is based on actual amounts owed to the Developer and Master Developer. Amount requested from RPTTF are based on the 2020-21 Assessed Valuations and the resulting obligations. 13 Summerly DDA Extraordinary Infrastructure Fund OPA/DDA/ Construction $5,777,164 - - - 50,064 - $50,064 - 128,717 - 52,049 - $180,766 Amounts requested from Reserve Balance is based on actual amounts owed to the Developer. Amount requested from RPTTF are based on the 2020-21 Assessed Valuations and the resulting obligations. 18 City Reimbursement LERA Bonds Issued After 12/31/10 $13,548,150 - - - 564,700 - $564,700 - - - - - $- 19 Housing Fund Loan SERAF/ERAF $- - - - - - $- - - - - - $- 20 Housing Fund Loan Third-Party Loans $28,071,817 - - - 2,491,579 - $2,491,579 - - - - - $- 22 Legal Services Fees $210,000 - - - 35,000 - $35,000 - - - - - $- 23 Consultant Fees Fees $21,037 - - - 9,329 - $9,329 - - - - - $- 28 Estimated Admin Cost Admin Costs $381,730 - - - - - $- - - - - - $- 29 Stadium License Agreement Miscellaneous $548,923 - - 274,461 - - $274,461 - - - - - $- Item # Project Name Obligation Type Total Outstanding Obligation Authorized Amounts Total Requested Adjustments Total Notes Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF 30 Stadium Maintenance Agreement Property Maintenance $- - - - - - $- - - - - - $- 31 Stadium Concession Agreement Miscellaneous $- - - - - - $- - - - - - $- 32 Stadium Operation and Maintenance Property Maintenance $- - - - - - $- - - - - - $- 33 Interim Stadium Management Agmt. Miscellaneous $3,508,137 - - - 902,431 - $902,431 - - - 607,086 - $607,086 RPTTF funds requested are necessary to cover unbudgeted emergency/necessary repairs (ie plumbing, netting as required by minor league baseball, parking lot perimeter fencing necessary to mitigate vandalism & theft) actual costs of budgeted capital items that exceed cost estimates (ie tree replacement) 34 Riverside County Flood Control District Improvement/ Infrastructure $- - - - - - $- - - - - - $- 35 Administrative Reimbursement RPTTF Shortfall $146,540 - - - - - $- - - - - - $- 38 Contract for Auditing Services Fees $- - - - - - $- - - - - - $- 39 Bond Disclosure Services Fees $284,700 - - - 23,400 - $23,400 - - - - - $- 40 Property Maintenance Property Maintenance $- - - - - - $- - - - - - $- 41 Subordinated Tax Allocation Refunding Bonds, Series 2015 Bonds Issued After 12/31/10 $6,370,350 - - - 483,378 - $483,378 - - - - - $- 42 Fiscal Agent Fees Fees $204,700 - - - 6,500 - $6,500 - - - - - $- 43 Housing Authority Admin. Cost Admin Costs $- - - - - - $- - - - - - $- 44 Reconveyance Cost Property Dispositions $18,000 - - - - - $- - - - - - $- Item # Project Name Obligation Type Total Outstanding Obligation Authorized Amounts Total Requested Adjustments Total Notes Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF 45 Arbitrage Fees Fees $89,000 - - - 4,500 - $4,500 - - - - - $- 46 Third Lien Tax Allocation Bonds, Series 2018A Bonds Issued After 12/31/10 $2,836,863 - - - 77,912 - $77,912 - - - - - $- 47 Third Lien Tax Allocation Bonds, Series 2018B (Federally Taxable) Bonds Issued After 12/31/10 $9,757,869 - - - 343,387 - $343,387 - - - - - $- 48 Subordinated Tax Allocation Refunding Bonds, Series 2019A Bonds Issued After 12/31/10 $14,179,817 - - - 362,250 - $362,250 - - - - - $- 49 Interim Stadium Management Agmt. RPTTF Shortfall $- - - - - - $- - - - - - $- 50 Tax Allocation Refunding Bonds, Series 2019B (Housing-Set- Aside) Bonds Issued After 12/31/10 $4,328,774 - - - 361,330 - $361,330 - - - - - $- 51 EVMWD - Amber Ridge OPA/DDA/ Construction $61,088 - - - - - $- - - - - - $- 52 Tax Allocation Refunding Bonds, Series 2020A Bonds Issued After 12/31/10 $- - - - - - $- - - - - - $- 53 MG/Chelsea Outlet OPA OPA/DDA/ Construction $39,774 - - - - - $- - - - - - $- 54 Third Lien Tax Allocation Bonds, Series 2020B Bonds Issued After 12/31/10 $- - - - - - $- - - - - - $- 55 Third Lien Tax Allocation Bonds, Series 2020C Bonds Issued After 12/31/10 $- - - - - - $- - - - - - $- 56 Legal Fees Litigation $107,618 - - - - - $- - - - - - $- Item # Project Name Obligation Type Total Outstanding Obligation Authorized Amounts Total Requested Adjustments Total Notes Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Reimbursement