R20 (SAS)Successor Agency Meeting: September 9, 2014 Santa Monica, California
RESOLUTION NO. 20 (SA)
A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR
AGENCY APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR JANUARY 2015 — JUNE 2015
WHEREAS, pursuant to the California Community Redevelopment Law (Health and
Safety Code Section 33000 et seq.) (the 'Redevelopment Law "), the City Council of the City of
Santa Monica (the "Council') adopted the Earthquake Recovery Redevelopment Project by
Ordinance No. 1747 (CCS) on June 21, 1994, the Downtown Redevelopment Project by
Ordinance No. 1021 (CCS) on January 13, 1976, the Ocean Park 1A Project by Ordinance No.
497 (CCS) on June 30, 1960, and the Ocean Park 1 B Project by Ordinance No. 516 (CCS) on
January 24, 1961 (collectively the, "Redevelopment Plans "); and
WHEREAS, the California Legislature adopted, and the Governor signed, Assembly Bill
Nos. 26 and 27 (2011 -2012 1St Ex. Sess.) enacted as Stats. 2011, 1st Ex. Sess. 2011 -2012, chs.
5 -6 (hereinafter AB 26 and AB 27) into law; and
WHEREAS, in July 2011, California Redevelopment Agency v. Matosantos was filed in
the California Supreme Court, challenging the constitutionality of AB 26 and AB 27, and on
December 29, 2011, the Supreme Court issued its opinion in Matosantos, upholding AB 26 and
exercising its power of reformation to revise and extend each effective date or deadline for
performance of an obligation in part 1.85 of division 24 of the Redevelopment Law, and
invalidating AB 27; and
WHEREAS, the City of Santa Monica is the designated Successor Agency of the
Redevelopment Agency of the City of Santa Monica, within the meaning of AB 26; and
WHEREAS, Section 34177(a)(1) of the Redevelopment Law, as reformed by the
California Supreme Court in Matosantos, provides that on or after February 1, 2012, and until a
Recognized Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be made; and
WHEREAS, Section 34177(a)(3) of the Redevelopment Law, as reformed by the
California Supreme Court in Matosantos, provides that commencing on May 1, 2012, only those
payments listed in a Recognized Obligation Payment Schedule may be made by the Successor
Agency from the funds specified in the Recognized Obligation Payment Schedule; and
WHEREAS, the California Legislature adopted, and the Governor signed, Assembly Bill
No. 1484 enacted as Stats. 2012, ch. 25 (hereinafter AB 1484) into law; and
WHEREAS, AB 1484, requires the Santa Monica Redevelopment Successor Agency to
submit to the Los Angeles County Auditor - Controller the ROPS for the period ending June 30,
2015, for its review before approval by the Oversight Board; and
WHEREAS, AB 1484, requires the Santa Monica Redevelopment Successor Agency to
submit to the State of California Department of Finance the ROPS for the period ending June
30, 2015, which has to be approved by the Oversight Board, no later than October 3, 2014; and
WHEREAS, under Title 14 of the California Code of Regulations, Section 15061(b)(3),
the approval of a Recognized Obligation Payment Schedule is exempt from the requirements of
the California Environmental Quality Act ( "CEQA "), in that it is not a project as the adoption of a
Recognized Obligation Payment Schedule will not have the potential of causing a significant
environmental effect and it can be seen with certainty that there is no possibility that the
adoption of Recognized Obligation Payment Schedule will have any significant effect on the
environment; and
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WHEREAS, in May 2002, the Redevelopment Agency issued the Ocean Park
Redevelopment Projects Tax Allocation Bonds Series 2002 ( "2002 Bonds "); and
WHEREAS, the 2002 Bonds were issued to refinance the Agency's 1992 Ocean Park
Projects Tax Allocation Refunding Bonds, and to provide funds for the purpose of aiding in
increasing and preserving low and moderate income housing within or of benefit to the project
areas; and
WHEREAS, at present, $6,185,000 of the 2002 Bonds are outstanding with an interest
rate of 5 %; and
WHEREAS, the 2002 Bonds are now callable at any time and redemption of these
bonds would result in savings of approximately $637,000 in future interest costs; and
WHEREAS, the savings on the redemption of the 2002 Bonds would be apportioned
between the various taxing entities within the project area, including the City of Santa Monica;
and
WHEREAS, the Successor Agency has reviewed and duly considered the Recognized
Obligation Payment Schedule for the period January 2015 — June 2015, inclusive, attached as
Exhibit 1, and other written evidence presented at the meeting, if any.
NOW, THEREFORE, THE SUCCESSOR AGENCY DOES RESOLVE AS FOLLOWS:
SECTION 1. The Successor Agency hereby finds and determines that the foregoing
recitals are true and correct.
SECTION 2. The Successor Agency hereby approves and adopts the draft
Recognized Obligation Payment Schedule for the period January 2015 — June 2015, inclusive,
attached as Exhibit 1 (referenced hereinafter as "the Recognized Obligation Payment
Schedule').
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SECTION 3. The Successor Agency hereby approves the redemption of the 2002
Bonds, which redemption is included in the Recognized Obligation Payment Schedule for the
period January 2015 - June 2015.
SECTION 4. The Successor Agency authorizes the Chief Administrative Officer or his
designee to:
(1) Submit the Recognized Obligation Payment Schedule to the County Auditor-
Controller for review;
(2) Submit the Recognized Obligation Payment Schedule to the Oversight Board for
approval;
(3) Submit an electronic copy of the Recognized Enforceable Obligation Payment
Schedule to the State Department of Finance for approval;
(4) Designate a Successor Agency representative to respond to all questions related to
the Recognized Obligation Payment Schedule; and
(5) Take such other actions and execute such other documents as are appropriate to
effectuate the intent of this Resolution and to implement the Recognized Obligation
Payment Schedule on behalf of the Successor Agency.
SECTION 5. The Secretary of the Successor Agency shall certify the adoption of this
Resolution and thenceforth and thereafter the same shall be in full force and effect.
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Exhibit 1: RRecognized Obligation Payment Schedule (ROPS 14 -15B) January -June 2015
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Recognized Obligation Payment Schedule (BOPS 14 -15B) - Notes
January 1, 2015 through June 30, 2015
Item #
Notes /Comments
1
The $1,131,206 January 1, 2015 bond debt service payment on the 2011 Earthquake RDA Bonds will be paid
from the prior period RPTTF (ROPS 14 -15A), see Reserve Balance.
2
The $1,066,847 January 1, 2015 bond debt service payment on the 2006 Earthquake Series A RDA Bonds will
be paid from the prior period RPTTF (ROPS 14 -15A), see Reserve Balance.
4
The 2002 Ocean Park Bonds will be paid in full on January 2, 2015. The source of funding includes 2002
Ocean Park Bond Reserves in the amount of $1,468,870 and 2002 Ocean Park Special Plan Limit Special
Fund Reserve in the amount of $5,353,505.
19
The request for RPTTF on High Place East follows an unspent allocation of $2,203,260 RPTTF on ROPS 13-
14A that was not used during this period and the additional funds of $589,870 which is part of the Loan
Agreement dated November 16, 2012. This obligation was included as part of Stipulation to Entry of Judgment
(Superior Case No. 34- 2013 - 80001382 -CU -WM -GDS) and the remaining obligation is to be paid from RPTTF.
27
Per H & S Code Section 34177.3(b), amount shown reflects estimated costs of appraiser services necessary
to wind down the affairs of the Agency on an as needed basis. Total outstanding obligation subject to change
should additional appraiser services be required.
33
These are construction project management costs associated with the High Place East Project.
Recognized Obligation Payment Schedule (ROPS 14 -15B) - Notes
Report of Prior Period Adjustments
Reported for the ROPS 13 -14B ( January 1, 2014 through June 30, 2014)
24
4th and Arizona: This obligation was paid during the ROPS 13 -14A period.
36
FAME (1754 19th St/1753 18th St/1924 -30 Euclid): The project was funded with bond proceeds and low -mod
funds. This obligation was part of Stipulation to Entry of Judgment (Superior Case No. 34 -2013- 80001382 -CU-
W M -GDS). The project will not be on any future ROPS.
37
1942 High Place (High Piece West): The project was finance with bond proceeds. This obligation was included
as part of Stipulation to Entry of Judgment (Superior Case No. 34 -2013- 80001382 -CU -WM -GDS). The project
will not be on any future ROPS.
38
520 Colorado Ave.: The project was funded using low -mod funds. This obligation was included as part of
Stipulation to Entry of Judgment (Superior Case No. 34 -2013- 80001382 -CU -WM -GDS). The project will not be
on any future ROPS.
Adopted and approved this 9th day of September, 2014.
Terry O'Day,
I, Sarah Gorman, Agency Secretary of the City of Santa Monica, do hereby
certify that the foregoing Resolution No. 20 (SA) was duly adopted at the meeting of the
Santa Monica Redevelopment Successor Agency held on the 9th day of September
2014, by the following vote:
Ayes: Agency members: Davis, Holbrook, McKeown, Winterer, Vazquez
Chair Pro Tem O'Day
Noes: Agency members: None
Absent: Agency members: Chair O'Connor
ATTEST:
cC,44At A - 2 &2&Z
Sarah Gorman, Agency Secretary AV