Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston \Approving the Recognized Obligation Payment Schedule V (ROPS 13-14B) Pursuant to Health and Safety Code Section 34177 for the Period January through June, 2014.

Meeting Date September 03, 2013

Agenda Item #9. Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston  \Approving the Recognized Obligation Payment Schedule V (ROPS 13-14B) Pursuant to Health and Safety Code Section 34177 for the Period January through June, 2014.

STAFF REPORT

AGENDA ITEM: Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston Approving the Recognized Obligation Payment Schedule V (ROPS 13-14B) Pursuant to Health and Safety Code Section 34177 for the Period January through June 30, 2014.

MEETING DATE: September 3, 2013

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

REVIEWED BY: Jose Antonio Ramirez, City Manager

RECOMMENDATION:

Adopt Resolution No. 2013-_, a Resolution of the Successor Agency to the Redevelopment Agency of the City of Livingston approving the Recognized Obligation Payment Schedule V (ROPS 13-148) for the period January through June, 2014.

BACKGROUND:

The Oversight Board, Department of Finance, and County have approved the previous ROPS I, and II schedules for periods January through June 2012 (ROPS I) and July through December 2012 (ROPS II). All obligations listed under these ROPS were honored by all parties.

AB 1484, clean-up bill, was introduced to address bill language discrepancies, to clarify and add specific procedures and guidelines. Part of these new procedures required true-up or reconciliation reviews (Due Diligence Reviews). Management has addressed several reviews including a most recent one performed by the State Controller’s Office in the month of August. Management and legal counsel have devoted time addressing denial of items reported on ROPS III and IV schedules. These items include the $511,193 outstanding RDA principal loan balance to the City on which litigation was filed. The City has not been successful in collecting loan principal payments since fiscal year 2010-2011. Many cities are in a similar situation where outstanding obligations/commitments have been denied. The Department of Finance is facing over 90 litigations over similar denials.

This new required ROPS 13-14B (V) is for the period of January through June 30, 2014 and is due to Department of Finance and County by October 1, 2013 and will require approval of the Oversight Board prior to submittal. The ROPS schedule format was revised by Department of Finance again in August. This is an automated version which could be submitted online.

Our ROPS 13-14B (V) includes all anticipated obligations between January through June 2014 including administrative and legal costs. The report reflects the same obligations as previous ROPS 13-14A submitted.

DISCUSSION:

Successor Agency to approve the Recognized Obligation Payment Schedule V (ROPS 13-14B) per ABX! 26 and AB 1484.

FISCAL IMPACT:

Reported on ROPS 13-I 4B Schedule: $54,210 in Tax Increment Revenues.

ATTACHMENTS:

I. Resolution No. 2013-

2. ROPS 13-14B- Exhibit A

RESOLUTION NO. 2013-

RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LIVINGSTON ADOPTING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE IV (ROPS 13-14B) FOR THE PERIOD OF JANUARY 2014 JUNE 2014 PURSUANT TO HEALTH AND SAFETYCODE 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 every six months, (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 13-14B, for the period of January 2014 – June 2014, 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 City Manager has recommended approval of the ROPS 13-14B, 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 V) for the period January 2014 to June 2014 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 January 2014 through June 2014, 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. Severabilitv.

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 3rd day of September, 2013, by the following vote:

AYES:   Agency Members:

NOES:   Agency Members:

ABSENT:  Agency Members:

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 3rd day of September, 2013.

Betty Cota, Deputy City Clerk of the City of Livingston

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