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Home My WebLink About004-2016SARESOLUTION NO.4-2016SA APPROVING AND ADOPTING RECOGNIZED OBLIGATION PAYMENT SCHEDULE BOPS 16-17 FOR THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE AND APPROVING THE ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY FOR THE PERIOD FROM JULY 1, 2016 THROUGH JUNE 30, 2017 WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Town Council of the Town of Danville adopted the Redevelopment Plan for the Downtown Danville Redevelopment Project (the "Redevelopment Plan"); and WHEREAS, the Redevelopment Plan had been implemented by the Community Development Agency of the Town of Danville (the "CDA"); and WHEREAS, ABx1 26 was enacted on June 28, 2011 and was subsequently amended with the adoption of AB 1484 and SB 107 (collectively, the "Dissolution Act"); and WHEREAS, on January 10, 2012, acting in accordance with Health and Safety Code Sections 341710) and 34173, the Danville Town Council adopted Resolution No. 6-2012, accepting the designation to serve as the Successor Agency to the CDA; and WHEREAS, pursuant to the Dissolution Act, the CDA was dissolved as of February 1, 2012, at which time the assets and payment obligations (defined in the Dissolution Act as "Enforceable Obligations") of the CDA were transferred to the Successor Agency; and WHEREAS, pursuant to the Dissolution Act, the Successor Agency is required to adopt a Recognized Obligation Payment Schedule ("ROPS") yearly, setting forth the Enforceable Obligations of the Successor Agency for the coming twelve month period; and WHEREAS, the Successor Agency is required to adopt a ROPS covering the period from July 1, 2016 through June 30, 2017 (ROPS 16-17); and WHEREAS, pursuant to Health and Safety Code Section 341770), the Successor Agency must prepare an administrative budget for its general administrative costs and expenses for each twelve month period (the "Administrative Budget"). Pursuant to Health and Safety Code Section 34171(b)(3), the administrative budget for the fiscal year shall be up to three percent (3%) of the actual property taxes paid to the Successor Agency but not less than $250,000, unless reduced by the Oversight Board or a lower amount is agreed to by the Successor Agency; and WHEREAS, both ROPS 16-17 and the Administrative Budget must be submitted to the Oversight Board for approval; and WHEREAS, acting pursuant to Health and Safety Code Section 34178(a) of the Dissolution Act, the Successor Agency and the Town of Danville approved an Agreement Reentering into Cooperation Agreement (the "Reentered Agreement), which was subsequently approved by the Oversight Board to the Successor Agency as an Enforceable Obligation on ROPS 1 and all subsequent ROPS; and WHEREAS, after the California Department of Finance ("DOF") disapproved the Reentered Agreement as an Enforceable Obligation, the Successor Agency and Town filed suit against DOF challenging their determination regarding the Reentered Agreement (Sacramento County Superior Court Case No. 34-2014-80001738). Judge Michael Kenny of the Superior Court ruled that the Successor Agency and Town had properly entered into the Reentered Agreement and that it was, in fact, , an enforceable obligation under the Dissolution Act; and WHEREAS, the DOF appealed this decision, further delaying recognition of the Reentered Agreement as an Enforceable Obligation, before dismissing their appeal on May 18, 2015. On May 15, 2015, DOF sent a letter to the Successor Agency recognizing for the first time the Reentered Agreement as an Enforceable Obligation and beginning with ROPS 15-16A, the Successor Agency has received payment for the Reentered Agreement; and WHEREAS, as a result of this history, the Successor Agency did not receive payment under the terms of the Reentered Agreement on ROPS 1, 2, 3, 13-14A, 13-14B, 14-15A and 14-15B, for a total of $3,150,000; and WHEREAS, paragraph 3 of the Cooperation Agreement (the original agreement which was the subject of the Reentered Agreement) provides that "[t]o the extent the Agency is unable to make payments as provided for in Exhibit 1 due to state takeaways or other factors beyond the control of the Town and Agency, those unpaid amounts shall be added to remaining payments."; and WHEREAS, now that the litigation with the DOF has been resolved and the Reentered Agreement has been recognized as an Enforceable Obligation, it is appropriate to comply with the terms of the Reentered Agreement and begin to pay the Successor Agency the unpaid amounts due as provided for in paragraph 3 of the Agreement; and WHEREAS, the Successor Agency has reviewed and duly considered the Staff Report, ROPS 16-17, the Administrative Budget and documents and other evidence presented at the meeting; now, therefore, be it RESOLVED, that the Successor Agency to the former Community Development Agency of the Town of Danville, finds that the above Recitals are true and correct and have served, together with the supporting documents, as the basis for the findings and approvals set forth below; and, be it further PAGE 2 OF RESOLUTION NO.4-2016SA RESOLVED, that the Successor Agency to the former Community Development Agency of the Town of Danville, hereby approves and adopts Recognized Payment Obligation Payment Schedule ROPS 16-17, attached hereto as Exhibit 1; and, be it further RESOLVED, that due to DOF's initial erroneous determination that the Reentered Agreement between the Successor Agency and the Town of Danville was not an Enforceable Obligation, the Successor Agency has not received $3,150,000 in Redevelopment Property Tax Trust Fund ("RPTTF") to which it was entitled for ROPS periods 1 through 14-15B, that there are sufficient RPTTF funds available to begin to add repayment of the $3,150,000 to the amounts due under the terms of the Reentered Agreement as shown on attached Exhibit 3 and that repayment will allow the Successor Agency and the Town of Danville to fulfill the stated purposes of the Reentered Agreement; and, be it further RESOLVED, that the Successor Agency to the former Community Development Agency of the Town of Danville, authorizes and directs Town staff to: (1) present ROPS 16-17 to the Successor Agency's Oversight Board for consideration of approval; (2) provide a copy of ROPS 16-17 to the County Administrator, County Auditor -Controller and the State Department of Finance at the same time as presented to the Oversight Board; (3) once approved by the Oversight Board, provide an approved copy of ROPS 16-17 to the County Auditor -Controller, the State Department of Finance, and the State Controller and to post ROPS 16-17 on the Town website; and (4) to take such other actions and execute such other documents as are necessary to implement ROPS 16-17 on behalf of the Successor Agency; and, be it further RESOLVED, that the Successor Agency to the former Community Development Agency of the Town of Danville, hereby approves the Administrative Budget for the period from July 1, 2016 through June 30, 2017, attached hereto as Exhibit 2, which is less than the $250,000 minimum provided for in Health and Safety Code Section 34171(b)(3); and, be it further RESOLVED, that Town staff is directed to: (1) provide a copy of the Administrative Budget to the County Auditor -Controller; and (2) submit the Administrative Budget to the Oversight Board for consideration of approval. PAGE 3 OF RESOLUTION NO.4-2016SA APPROVED by the Successor Agency to the former Community Development Agency of the Town of Danville, at a special meeting on January 26, 2016, by the following vote: AYES: Stepper, Morgan, Arnerich, Doyle, Storer NOES: None ABSTAINED: None ABSENT: None APPROVED AS TO FORM: CITY ATTORNEY I PAGE 4 OF RESOLUTION NO.4-2016SA Successor Agency: County: Recognized Obligation Payment Schedule (ROPS 16-17) - Summary Filed for the July 1, 2016 through June 30, 2017 Period Danville Contra Costa ROPS 16-17 Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 16-17A Total 16-17B Total Total Enforceable Obligations Funded with Non -Redevelopment Property Tax Trust Fund (RPTTF) A Funding Sources (B+C+D): $ 12,474 $ - $ 12,474 B Bond Proceeds Funding - - - C Reserve Balance Funding - - - D Other Funding 12,474 - 12,474 E Enforceable Obligations Funded with RPTTF Funding (F+G): $ 1,236,745 $ 991,082 $ -2,227,827 F Non -Administrative Costs 1,196,745 947,982 2,144,727 G Administrative Costs 40,000 43,100 83,100 H Current Period Enforceable Obligations (A+E): $ 1,249,219 $ 991,082 $ '' 2,240,301 Certification of Oversight Board Chairman: 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� Name Signature Title Date EXHIBIT 1 Danville Recognized Obligation Payment Schedule (ROPS 16-17) - ROPS Detail July 1, 2016 through June 30, 2017 (Report Amounts in Whole Dollars A B C D E F G H I J K L M N O P Q R S T u v W 16-17A 16-17B Non -Redevelopment Property Tax Trust Fund Non -Redevelopment Property Tax Trust Fund (Non-RPTTF) RPTTF (Non-RPTTF) RPTTF Contract/Agreement Contract/Agreement Total Outstanding ROPS 16-17 Reserve 16-17A Reserve 16-17B Item # Project Name/Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project Scope Project Area Debt or Obligation Retired Total Bond Proceeds Balance Other Funds Non -Admin Admin Total Bond Proceeds Balance Other Funds Non -Admin Admin Total - $ `.:24,857,246":. :: '$ ::2,240,301 $ '-. $ - $ 12;474.'. $ 1;196,745 $ 40,000:: $ 1;249;218 S - $. $ - $ -: 947,982 $ 43,100 '$ '991,082:"" 1 2001 Certificates of Bonds Issued On or Before 10/1/2001 8/15/2026 Town of Danville COP refinancing for capital projects in 4,935,080 N '$ 448,802 - - - 362,371 - 1$ 362,371 - - - 86,431 Participation/Reimbursement 12/31/10 project area consistent with Agreement redevelopment plan/Agency contractually obligated to reimburse Town for lease payments made on COPS 2 2001 Taxable Revenue Revenue Bonds Issued On 12/1/2001 7/15/2028 Town of Danville Financing Bonds sold by Financing Authority to 4,727,837 N $ 366,383 - 12,474 238,366 - $ 250;840:: - 115,543 Bonds/Loan Repayment Agreement or Before 12/31/10 Authority finance 74-unitaffordable housing project in project area/Agency borrowed bond proceeds and contractually agreed to repay loan to Financing Authority 3 2005 Certificates of Bonds Issued On or Before 4/1/2005 2/15/2035 Town of Danville COP issue to fund construction of 6,443,990 N : $ 342,016: - 96,008 - :$ 96;008'--. - - - 246,008 Participation/Reimbursement 12/31/10 public parking facility and other capital Agreement projects within the project area and consistent with the redevelopment plan/Agency contractually obligated to reimburse Town for lease payments made on COPS 4 Successor Agency Administrative Admin Costs 1/1/2012 6/30/2014 Town of Danville Staff, consultant and vendor costs 83,100 N $ 83,100. - - 40,000 $ 40,000 : - - - - 43,100 S Costs necessary to carry out dissolution/wind down duties of Successor Agency, consistent with the Administrative Budget approved by the Oversight Board 5 Property Management Fee for 115- Property Maintenance 4/15/2011 6/30/2014 SPM Properties, Inc. Property management for multi -tenant N : $ - - $ - - - $-'- 125 Hartz Avenue commercial property owned by Successor Agency located at 115-125 Hartz Avenue. Monthly fee per contract equal to 3.5% of gross rental income for that month 6 Town Loan/Cooperation Agreement City/County Loans On or 5/1/2012 6/30/2024 Town of Danville Town loaned funds to Agency 8,667,239 N $ 1,000,000'. - - 500,000 - $ 500,000 : - - - 500,000 Before 6/27/11 necessary to make debt service payments and pay for capital projects within the Project Area, consistent with the Redevelopment Plan, in years when Agency did not have - sufficient funds to make such payments. Oversight Board approved Reentered Agreement on May 7, 2012 7 N $ - $ .$ .. 12 N $ - $ $'= 13 N '$ $ 14 N $ $ "$� 15 N 'S - :$ 16 N $ $ $ ; 18 N $ '$ $- -19 N :$ $ $ ? r20 N $ 22 N $ - '$ $, t 'S25 N $ $ $ 27 N $ $ '$ 28 N $ '$ ;$ - 29 N $ $ $.= 130 N $ $ $ ,.31 N $ $ 321 $ $ 33 $ 34 N '-35 $ $ ': 7 i36 '$37 $39 JN$ 41 $42 $43 $ $.. ::45 N $ $ $ Danville Recognized Obligation Payment Schedule (ROPS 16-17) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (1), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see CASH BALANCE TIPS SHEET A B C D E F G H I Fund Sources Bond Proceeds . Reserve Bce alanOther. RPTTF Prior ROPS Prior ROPS period balances RPTTF Bonds issued on and DDR RPTTF distributed as Rent, Non -Admin or before Bonds issued on balances reserve for future grants, and Cash Balance Information by ROPS Period 12/31/10 or after 01/01/11 retained period(s) interest, etc. Admin Comments 3 1 Expenditures for ROPS 15-16A Enforceable Obligations (Actual 12/31/15) - I - I - I - 1 93,054 695,977 4 Retention of Available Cash Balance (Actual 12/31/15) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 15-16A RPTTF Balances Remaining - ` s s> i,. ''b � +��. S E- y z,' .,✓tom 6 i=ndm :Actual Available.Gash`;Balance . g ; h C.to ROPS,15=1613Estimate (01/01/16- 06/30l46), 7 Be" ronin" :Available, Cash: u 101 1.6.. 9 9. `G ,5.:, 6 8 Revenue/Income (Estimate 06/30/16) RPTTF amounts should tie to the ROPS 15-16B distribution from the County Auditor -Controller during January 2016 - - - - 102,797 414,719 Rental revenues received 9 Expenditures for ROPS 15-16B Enforceable Obligations (Estimate 06/30/16) - - - - 139,225 414,719 10 Retention of Available Cash Balance (Estimate 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) - - - - - - 11 Endiri Estimated Available Cash Balance 7 +8 9 1.0 g ( ) V $ - $, 375,067 $" Danville Recognized Obligation Payment Schedule (ROPS 16-17) - Notes July 1, 2016 through June 30, 2017 Item # I Notes/Comments The "Other Funds" shown in Column N represents cash balance available as of June 30, 2016. As explainted on Cash Balance sheet, Line 8, Column I, this consists of rental income from property owend by the Successor Agency. There are no "Other Funds" shown in Column T for Period 16-17B as it is anticipated that the 2 Successor Agency property generating the rental income will be sold prior to June 30, 2016. This obligation represents property management fees paid to SPM Properties. As described in the prior note, it is anticipated that the property in question will be sold prior to June 30, 2016, meaning the obligation would be ended and no payments due to SPM. However, in the event that escrow has not closed by June 30 and the 5 property is still owned by the Successor Agency, the Agency has elected to continue to show the item if it is necessary to file an amended ROPS to address this issue. As explained in Oversight Board Resolution No. 1-2016, the $1,000,000 total shown in Column K represents the $900,000 listed in Exhibit 1 to the Reentered Cooperation Agreement and $100,000 to begin to address the funds due to the Successor Agency under the Reentered Agreement but not paid during ROPS Periods 6 1 through 14-15B (totalling $3,150,000) while DOF contested the validity of the Reentered Agreeement. _ _ SUCCESSOR AGENCY TO THE FORMER COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE ADMINISTRATIVE BUDGET-ROPS 16-17 7/1/16-6/30/17 ROPS 16-17A (7/1/16-12/31/16) Budget Item Purpose Estimated Cost Pun & McGeady Financial audit for Successor Agency $3,000 Goldfarb & Lipman Legal Counsel to Successor Agency for $5,000 dissolution/wind down issues Town of Danville Staff/Overhead Costs Town Staff and overhead costs necessary to $32,000 admininster Successor Agency duties related to dissolution and wind down Total for Period - ROPS 16-17A $40,000 ROPS 16-17B (1/1/17-6/30/17) Budget Item Purpose Estimated Cost Pun & McGeady Financial audit for Successor Agency $1,000 Bank of New York Fiscal Agent for 2001 and 2005 COP'S and $6,000 2001 TRB's Willdan Financial Services Required annual disclosure statements for $5,600 COP's and TRB's Goldfarb & Lipman Legal Counsel to Successor Agency for $2,500 dissolution/wind down issues Town of Danville Staff/Overhead Costs Town Staff and overhead costs necessary to $28,000 admininster Successor Agency duties related to dissolution and wind down Total for Period - ROPS 16-17B $43,100 Total for ROPS 16-17 $83,100 Exhibit 2 EXHIBIT 3 ROPS 16-17 Fiscal Year Payment Due per original schedule' Payment Actually Received2 Additional Repayment Amount 3 Total Payment 2011/12 $750,000 $0 $0 2012/13 $800,000 $0 $0 2013/14 $800,000 $0 $0 2014/15 $800,000 $0 $0 2015/16 $900,000 $900,000 $900,000 2016/17 $900,000 $100,000 $1,000,000 2017/18 $900,000 $100,000 $1,000,000 2018/19 $1,000,000 $100,000 $1,100,000 2019/20 $1,000,000 $100,000 $1,100,000 2020/21 $1,000,000 $100,000 $1,100,000 2021/22 $1,000,000 $100,000 $1,100,000 2022/23 $1,000,000 $100,000 $1,100,000 2023/24 $409,041 $690,599 $1,100,000 2024/25 $0 $1,100,000 $1,100,000 2025-26 $0 $659,401 $659,401 1 See Exhibit 1 to Reentered Agreement 2 Based on prior ROPS reviewed and approved by DOF 3 Based on Paragraph 3 of Reentered Cooperation Agreement