4 Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston Approving the Recognized Obligation Payment Schedule (ROPS 16-17 A & B) Pursuant to Health and Safety Code Section 34177 for the Period of July 2016 through June 30, 2017

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Meeting Date FEBRUARY 02, 2016

STAFF REPORT

AGENDA ITEM: Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston Approving the Recognized Obligation Payment Schedule (ROPS 16-17 A & B) Pursuant to Health and Safety Code Section 34177 for the Period of July 2016 Through June 30, 2017.

MEETING DATE: February 2, 2016

PREPARED BY: Odi Ortiz, Interim City Manager/Finance Director

REVIEWED BY: Odi Ortiz, Interim City Manager/Finance Director

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RECOMMENDATION:

Adopt Resolution No. 2016-_, a Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston approving the Recognized Obligation Payment Schedule (ROPS 16-17 A & B).

BACKGROUND:

The California Department of Finance (DOF) requires agencies to submit approved Recognized Obligation Payment Schedules. The latest changes now require annual submissions (one report covering full fiscal year) to authorize funding.

This new required ROPS 16-17 A & B is for the period of July 2016 through June 30, 2017, and is due to the DOF and Merced County by February 1, 2016.

OTHER INFORMATION:

The City of Livingston has paid the Successor Agency $350,000 (1/2 of the $700K) of unallowable fund transfers requested by the State Controller. The payment was re-distributed to Merced County in September/October 2015. Merced County was required to re-distribute those sources to related taxing entities.

DISCUSSION:

Successor Agency to approve the Recognized Obligation Payment Schedule (ROPS 16-17 A & B) per ABXI 26 and AB 1484.

FISCAL IMPACT:

Annual projected expenditures (obligations) reported on ROPS 16-17 A & B Schedules is $93,150 to cover administrative costs between July 2016 through June 2017.

ATTACHMENTS:

1. Resolution No. 2016-

2. ROPS 16-17 A & B – Exhibit A

1. Resolution No. 2016-

RESOLUTION NO. 2016-

RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LIVINGSTON ADOPTING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 16-17 A & B) FOR THE PERIOD OF JULY 2016 JUNE 30, 2017 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177

WHEREAS, the Livingston Redevelopment Agency ("Agency") was a Redevelopment agency formed pursuant to California Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("CRL"); and

WHEREAS, pursuant to Assembly Bill xl 26, and the California Supreme Court decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., which upheld Assembly Bill Xl 26, redevelopment agencies were dissolved on February 1, 2012; and

WHEREAS, pursuant to Health and Safety Code Section 34173 et seq. (AB Xl 26), the City of Livingston became the Successor Agency to the Redevelopment Agency of the City of Livingston; and

WHEREAS, pursuant to Health and Safety Code Section 34177(1), the successor agency to a dissolved redevelopment agency is required to adopt a Recognized Obligation Payment Schedule ("ROPS") that lists all of the obligations that are "enforceable obligations" within the meaning of Health and Safety Code Section 34177, and which identifies a source of payment for each such obligation from among (i) the Low and Moderate Income Housing Fund, (ii) bond proceeds, (iii) reserve balances, (iv) the administrative cost allowance, (v) revenues from rents, concessions, interest earnings, and asset sales, and (vi) the Redevelopment Property Tax Trust Fund established by the County Auditor-Controller to the extent no other source of funding is available or payment from property tax is contractually or statutorily required; and

WHEREAS, the ROPS must be (i) prepared by the successor agency and submitted annually (one report covering the full fiscal year), (ii) certified by an external auditor, (iii) submitted to and approved by the oversight board that will be established to review successor agency actions,

(iv) posted on the successor agency’s website, (v) transmitted to the County Auditor-Controller, and (vi) transmitted to the State Controller and the State Department of Finance; and

WHEREAS, the ROPS 16-17A & B, for the period of July 2016 through June 30, 2017, a copy of which is attached, has been presented to the Board of the Successor Agency. As the Successor Agency, the Council is familiar with the contents thereof, and the Interim City Manager has recommended approval of the ROPS 16-17 A & B, subject to the contingencies and reservation of rights set forth in this Resolution; and

WHEREAS, in adopting the Recognized Obligation Payment Schedule, the Successor Agency does not intend to waive, nor shall the Successor Agency be deemed to have waived any rights the Successor Agency may have pursuant to or in connection with any obligation listed on such

ROPS, including without limitation, the right to modify, amend, terminate or challenge any obligation listed on such ROPS Schedule.

NOW, THEREFORE, the Board of the Successor Agency to the Redevelopment Agency of the City of Livingston does hereby resolve as follows:

Section 1. Recitals.

The foregoing recitals are true and correct and made a part of this Resolution.

Section 2. Adoption of ROPS.

The Successor Agency finds that all obligations listed on the Recognized Obligation Payment Schedule (ROPS 16-17 A & B) for the period July 2016 to June 30, 2017 are true and correct and, accordingly, are hereby considered enforceable obligations.

The Recognized Obligation Payment Schedule, attached hereto and incorporated herein by reference as Exhibit A, for the period of July 2016 through June 30, 2017, is hereby approved and adopted pursuant to Health and Safety Code Section 34177.

Section 3. Direction to City Manager.

1. The Executive Director or his/her designee is authorized and directed to take all actions necessary to implement this Resolution, including without limitation, forwarding the ROPS to the Oversight Board for approval, the submittal of the ROPS to the County Administrative Officer, the County Auditor-Controller, State Controller and the Department of Finance, and the posting of this Resolution and the Recognized Obligation Payment Schedule on the City’s website.

2. The Executive Director and his/her designees are authorized and directed to take such actions as necessary and appropriate to carry out and implement the intent of this Resolution, including without limitation the establishment of separate accounts and funds as necessary to appropriately document the receipts and expenditures of the Successor Agency.

3. The Executive Director and his/her designees are authorized to comply with all other legal requirements, including, without limitation, the reformatting of the ROPS as required by the Department of Finance, and the posting of the ROPS on the City’s website.

Section 4. Severability.

Declares that if any provision, sentence, clause, section or part of this Resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remaining parts.

Passed and adopted this 2nd day of February, 2016, by the following vote:

AYES: Agency Members:

NOES: Agency Members:

ABSENT: Agency Members:

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Rodrigo Espinoza, Chair of the Successor Agency to the Redevelopment Agency of the City of Livingston

ATTEST:

I, hereby certify, that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Livingston this 2nd day of February, 2016.

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Betty Cota, Deputy City Clerk of the City of Livingston

2. ROPS 16-17 A & B – Exhibit A

 

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