SR 01-12-2021 3F
Redevelopment Successor Agency
Report
City Council Meeting: January 12, 2021 Agenda Item: 3.F
1 of 3
To: Redevelopment Successor Agency
From: David Martin, Director, Administration
Subject: Adoption of Resolutions Approving the Annual Recognized Obligation Payment Schedule (ROPS) Submission
Recommended Action Staff recommends that the Redevelopment Successor Agency adopt resolutions approving the Agency’s draft recognized obligation payment schedule and administrative budget for July 1, 2021
through June 30, 2022.
Summary
In compliance with the statewide elimination of all Redevelopment Agencies in 2012,
the Redevelopment Successor Agency is required to prepare a recognized obligation
payment schedule (ROPS) and corresponding administrative budgets on a yearly basis.
The ROPS identifies the former redevelopment agency’s enforceable obligations and
the agency’s administrative costs. The ROPS also identifies the sources of payment for
the obligations, including bond proceeds, interest income, and distributions of tax
increment revenue from the State’s Redevelopment Property Tax Trust Fund (RPTTF).
The Santa Monica Redevelopment Successor agency is required to submit a ROPS,
approved by the 3rd District Consolidated Oversight Board, to the California Department
of Finance (DOF) and the relevant county auditor-controller no later than February 1 of
each year. The ROPS 2021-22 includes Successor Agency enforceable obligations of
$17,481,336 and an administrative budget of $264,251 covering July 1, 2021 to June
30, 2022. Staff recommends that the Successor Agency adopt the proposed resolutions
(Attachments A and B) authorizing the submission of the ROPS 2021-22 and
administrative budget to both the DOF and the County Auditor-Controller.
Discussion
The ROPS 2021-22 includes all Successor Agency enforceable obligations. All
3.F
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proposed enforceable obligations have been previously listed and approved for
payment on a previous ROPS. In addition, all enforceable obligations have received
final and conclusive determinations from the DOF.
Under AB 26 and SB 107, the Agency may receive an administrative cost allowance of
up to three percent of the property tax allocated to the Agency each fiscal year, based
upon an approved administrative budget which justifies the administrative cost
allowance. Based on estimated property tax allocation to the Successor Agency for
fiscal year 2021-22, the administrative cost allowance of $264,251 is within the cap of
$305,861 and is included as an enforceable obligation on the ROPS 2021-22 (see
Attachment A, Exhibit 1, Line Item 30).
Per ABX1 26, the Santa Monica Redevelopment Successor Agency Oversight Board
was established to oversee certain fiscal management matters and assets of the former
Agency, except for affordable housing. Per SB 107, on July 1, 2018, each of the 71
Oversight Boards in Los Angeles County were consolidated into five Consolidated
Oversight Boards organized by supervisorial district. The Third Supervisorial District
Consolidated Oversight Board (Consolidated Oversight Board) has jurisdiction over the
Santa Monica Successor Agency. The Consolidated Oversight Board is meeting on
January 12, 2021 and is expected to approve its own resolutions approving the
Successor Agency’s draft ROPS 21-22 and administrative budget, for the period July 1,
2021 through June 30, 2022, and authorizing the transmittal to the Department of
Finance for approval.
Next Steps
Copies of the ROPS 2021-22, as approved by the Consolidated Oversight Board, must
be sent to the State Controller’s Office and the Department of Finance and posted on
the Successor Agency’s website no later than February 1, 2021. The Department of
Finance must make its determination regarding the ROPS 2021-22 no later than April
15, 2021.
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Financial Impacts and Budget Actions
On June 1, 2021 and January 2, 2022, the Los Angeles County Auditor-Controller will
transfer property taxes into the Successor Agency’s cash account from which the
Agency will pay enforceable obligations listed on the approved ROPS 2021-22. Before
the distributions take place, the DOF must issue a determination letter with the total
RPTTF revenues to be disbursed for enforceable obligations along with a final
administrative cost allowance cap amount.
Prepared By: Melissa Lindley, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Proposed Resolution: ROPS 2021-22 B. Proposed Resolution: Admin Budget
3.F
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Successor Agency Meeting: January 12, 2021 Santa Monica, California
RESOLUTION NO. (SA)
A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY
APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD
JULY 1, 2021 THROUGH JUNE 30, 2022
WHEREAS, pursuant to ABx 1 26, enacted on June 28, 2011, and as subsequently
amended by AB 1484, SB 341, and SB 107 ("Dissolution Act"), the Redevelopment Agency to
the City of Santa Monica was dissolved as of February 1, 2012, and the City of Santa Monica
elected to serve as the Successor Agency to the former Redevelopment Agency to the City of
Santa Monica (“Successor Agency”); and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on
and after July 1, 2018, in the County of Los Angeles, where more than 40 oversight boards
were created by the Dissolution Act, the oversight boards were consolidated into five
consolidated oversight boards each encompassing one of the County’s five supervisorial
districts; and
WHEREAS, the Third Supervisorial District Consolidated Oversight Board ("Third
District Consolidated Oversight Board") has jurisdiction over the Successor Agency of the
Former Redevelopment Agency to the City of Santa Monica; and
WHEREAS, the Third District Consolidated Oversight Board held a regular meeting on
January 12, 2021; and
WHEREAS, Section 34177(a)(3) of the Health and Safety Code, as reformed by the
California Supreme Court in California Redevelopment Association v. Matosantos (2011) 53
Cal. 4th 231, provides that commencing on May 1, 2012, only those payments listed in a
Recognized Obligation Payment Schedule (“ROPS”) may be made by the Successor Agency
from the funds specified in the ROPS; and
3.F.a
Packet Pg. 158 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
WHEREAS, Section 34177(o) of the Health and Safety Code requires that the Successor Agency
submit an oversight board-approved ROPS to the Department of Finance (“DOF”) and County Auditor-
Controller (“CAC”) no later than February 1 of each year, commencing February 1, 2016; and
WHEREAS, the Third District Consolidated Oversight Board has reviewed and duly
considered the Recognized Obligation Payment Schedule for the period July 2021 – June
2022, inclusive, attached as Exhibit 1, and other written evidence presented at the meeting, if
any; and
WHEREAS, under Title 14 of the California Code of Regulations, Section 15061(b)(3),
the approval of the FY 2021-22 ROPS is exempt from the requirements of the California
Environmental Quality Act (“CEQA”), in that it can be seen with certainty that there is no possibility
that the FY 2021-22 ROPS will have any significant effect on the environment.
NOW THEREFORE, THE SUCCESSOR AGENCY DOES HEREBY RESOLVE AND
FIND 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 Recognized
Obligation Payment Schedule for the period July 2021 – June 2022, inclusive, attached hereto
as Exhibit 1 (referenced hereinafter as “the Recognized Obligation Payment Schedule”).
SECTION 3. The Successor Agency authorizes the Community Development Director to:
(1) Submit the Recognized Obligation Payment Schedule to the County Auditor-Controller
for review; and
(2) Submit an electronic copy of the Recognized Obligation Payment Schedule to the
State Department of Finance for approval; and
3.F.a
Packet Pg. 159 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
(3) Designate a Successor Agency representative to respond to all questions related to
the Recognized Obligation Payment Schedule; and
(4) Take such other actions and execute such other documents as are appropriate to
effectuate the intent of this Resolution.
SECTION 4. 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.
APPROVED AS TO FORM:
GEORGE S. CARDONA Interim Successor Agency Counsel
3.F.a
Packet Pg. 160 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Exhibit 1
Recognized Obligation Payment Schedule (ROPS 21-22)
3.F.a
Packet Pg. 161 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Recognized Obligation Payment Schedule (ROPS 21-22) - Summary Filed for the July 1, 2021 through June 30, 2022 Period
Successor Agency: Santa Monica
County: Los Angeles
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
21-22A Total (July - December)
21-22B Total (January - June)
ROPS 21-22
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ 3,300,000 $ 3,300,000
B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - 3,300,000 3,300,000
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 9,048,333 $ 5,397,254 $ 14,445,587
F RPTTF 8,784,082 5,397,254 14,181,336
G Administrative RPTTF 264,251 - 264,251
H Current Period Enforceable Obligations (A+E) $ 9,048,333 $ 8,697,254 $ 17,745,587
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
3.F.a
Packet Pg. 162 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Santa Monica
Recognized Obligation Payment Schedule (ROPS 21-22) - ROPS Detail
July 1, 2021 through June 30, 2022
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
21-22 Total
ROPS 21-22A (Jul - Dec)
21-22A
Total
ROPS 21-22B (Jan - Jun)
21-22B
Total
Fund Sources Fund Sources
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF
$289,434,826 $17,745,587 $- $- $- $8,784,082 $264,251 $9,048,333 $- $- $3,300,000 $5,397,254 $- $8,697,254
1 2011 Earthquake
RDA Bonds
Bonds Issued After 12/31/10 06/07/2011 07/01/2042 Union Bank Bond Payment Earthquake 75,659,650 N $2,262,413 - - - 2,262,413 - $2,262,413 - - - - - $-
2 2006 Earthquake RDA Series A
Bonds
Bonds Issued On or Before 12/31/10
04/27/2006 07/01/2029 Union Bank Bond Payment Earthquake 39,295,874 N $4,382,308 - - - 4,382,308 - $4,382,308 - - - - - $-
5 2011 Earthquake
RDA Bonds
(Reserve)
Reserves 06/07/2011 07/01/2042 Union Bank 2011 Earthquake
RDA Bonds
reserve as
required by the bond indenture
Earthquake - N $- - - - - - $- - - - - - $-
13 Bank of
America Term Loan
Third-Party
Loans
05/08/
2008
07/15/2028 Bank of
America
Bank of
America Loan Payment
Earthquake 24,242,425 N $4,233,315 - - - 2,136,061 - $2,136,061 - - - 2,097,254 - $2,097,254
16 1978
Promissory
Notes
City/County
Loan (Prior
06/28/11), Property transaction
10/24/
1978
06/29/2028 City of
Santa
Monica
Property
acquisition
note payment
Downtown - Y $- - - - - - $- - - - - - $-
17 2003
Promissory Note A
City/County
Loan (Prior 06/28/11), Property
transaction
12/14/
2004
01/01/2033 Parking
Authority
Downtown
Parking Structures 1-6 acquisition
note payment
Earthquake - Y $- - - - - - $- - - - - - $-
18 2003 Promissory Note B
City/County Loan (Prior 06/28/11),
Property
transaction
12/14/2004 01/01/2033 Parking Authority Downtown Parking Structures 1-6
acquisition
note payment
Earthquake - Y $- - - - - - $- - - - - - $-
24 Arizona and 4th Notes Miscellaneous 10/13/2010 01/01/2042 Multiple entities Mixed-use development
with public
plaza and
underground parking
Earthquake 71,700,000 N $3,300,000 - - - - - $- - - 3,300,000 - - $3,300,000
30 Successor
Administrative
Cost Allowance
Admin Costs 02/01/
2012
06/30/2014 Successor
Agency
3%
Administration
Costs
All 6,787,777 N $264,251 - - - - 264,251 $264,251 - - - - - $-
34 Bond Trustee Fees 06/07/07/01/2042 Union Annual Bond Earthquake 40,000 N $2,000 - - - 2,000 - $2,000 - - - - - $-
3.F.a
Packet Pg. 163 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
21-22 Total
ROPS 21-22A (Jul - Dec)
21-22A
Total
ROPS 21-22B (Jan - Jun)
21-22B
Total
Fund Sources Fund Sources
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF
Fees- 2011
Earthquake RDA Bonds
2011 Bank of
California
Administrative
Fees
35 Bond Trustee
Fees- 2006
Earthquake RDA Series A Bonds
Fees 04/27/
2006
07/01/2029 Union
Bank of
California
Annual Bond
Administrative
Fees
Earthquake 9,100 N $1,300 - - - 1,300 - $1,300 - - - - - $-
40 Arizona and
4th-Reimbursement Agreement
Miscellaneous 06/23/
2010
01/01/2042 City of
Santa Monica
Mixed-use
development with public plaza and
underground
parking
Earthquake 71,700,000 N $3,300,000 - - - - - $- - - - 3,300,000 - $3,300,000
3.F.a
Packet Pg. 164 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Santa Monica Recognized Obligation Payment Schedule (ROPS 21-22) - Report of Cash Balances
July 1, 2018 through June 30, 2019
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), 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.
A B C D E F G H
ROPS 18-19 Cash Balances
(07/01/18 - 06/30/19)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and Reserve Balances retained
for future
period(s)
Rent, grants, interest, etc. Non-Admin and Admin
1 Beginning Available Cash Balance (Actual 07/01/18)
RPTTF amount should exclude "A" period distribution
amount.
- 2,267,095 - 195,832 -
2 Revenue/Income (Actual 06/30/19)
RPTTF amount should tie to the ROPS 18-19 total
distribution from the County Auditor-Controller
- 21,731 - 2,950 30,052,469 D2 and F2 are for interest earned.
3 Expenditures for ROPS 18-19 Enforceable Obligations
(Actual 06/30/19)
- - - 35 29,958,746
4 Retention of Available Cash Balance (Actual 06/30/19) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
- 2,288,826 - - -
5 ROPS 18-19 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 18-19 PPA form submitted to the CAC
No entry required 93,723
6 Ending Actual Available Cash Balance (06/30/19)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $198,747 $-
3.F.a
Packet Pg. 165 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized
Santa Monica Recognized Obligation Payment Schedule (ROPS 21-22) - Notes
July 1, 2021 through June 30, 2022
Item # Notes/Comments
1
2
5
13 Variable interest rate. Payments based on actual interest rate from most recent bill received plus a 1%
escalation.
16
17
18
24
30
34
35
40
3.F.a
Packet Pg. 166 Attachment: Proposed Resolution: ROPS 2021-22 [Revision 2] (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Successor Agency Meeting: January 12, 2021 Santa Monica, California RESOLUTION NO. ______ (SA) A RESOLUTION OF THE SANTA MONICA REDEVELOPMENT SUCCESSOR AGENCY APPROVING THE ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY OF THE
FORMER REDEVELOPMENT AGENCY TO THE CITY OF SANTA MONICA FOR THE
PERIOD JULY 1, 2021 THROUGH JUNE 30, 2022
WHEREAS, pursuant to ABx 1 26, enacted on June 28, 2011, and as subsequently
amended by AB 1484, SB 341, and SB 107 ("Dissolution Act"), the Redevelopment Agency to
the City of Santa Monica was dissolved as of February 1, 2012, and the City of Santa Monica
elected to serve as the Successor Agency to the former Redevelopment Agency to the City of
Santa Monica (“Successor Agency”); and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on
and after July 1, 2018, in the County of Los Angeles, where more than 40 oversight boards were
created by the Dissolution Act, the oversight boards were consolidated into five consolidated
oversight boards each encompassing one of the County’s five supervisorial districts; and
WHEREAS, the Third Supervisorial District Consolidated Oversight Board ("Third District
Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former
Redevelopment Agency to the City of Santa Monica; and
WHEREAS, the Third District Consolidated Oversight Board held a regular meeting on
January 12, 2021; and
WHEREAS, Section 34177(j) of the Health and Safety Code, provides that the Successor
Agency shall prepare an administrative budget (“Administrative Budget”) and submit it to the
Oversight Board of the Successor Agency for its approval; and
WHEREAS, the Administrative Budget shall include the following:
3.F.b
Packet Pg. 167 Attachment: Proposed Resolution: Admin Budget (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
(1) Estimated amounts for successor agency administrative costs for the upcoming
annual fiscal period;
(2) Proposed sources of payment for the costs identified in subparagraph (1);
(3) Proposals for arrangements for administrative and operations services provided by a
city, county, city and county, or other entity; and
WHEREAS, on February 2, 2012, the Successor Agency approved a Reimbursement
Agreement by and between the City of Santa Monica and Successor Agency, Contract No. 9549
(CCS/RAS/SA), in accordance with Section 34171(d)(1)(F) of the California Health and Safety
Code; and
WHEREAS, Section 34177(k) of the California Health and Safety Code requires the
Successor Agency to provide administrative cost estimates, from its approved Administrative
Budget, that are to be paid from property tax revenues deposited in the Redevelopment Property
Tax Trust Fund, to the Los Angeles County Auditor-Controller for each six-month fiscal period;
and
WHEREAS, under Title 14 of the California Code of Regulations, Section 15061(b)(3), the
approval of the Administrative Budget is exempt from the requirements of the California
Environmental Quality Act (“CEQA”), in that it is not a project as the adoption of the Administrative
Budget 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 the Administrative Budget will have
any significant effect on the environment; and
WHEREAS, the Third District Consolidated Oversight Board has reviewed and duly
considered the Administrative Budget for the period July 2021 – June 2022, inclusive, attached
as Exhibit 1, and other written evidence presented at the meeting.
3.F.b
Packet Pg. 168 Attachment: Proposed Resolution: Admin Budget (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
NOW THEREFORE, THE SUCCESSOR AGENCY DOES HEREBY RESOLVE AND
FIND 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 Administrative
Budget for the period July 2021 – June 2022, inclusive, attached hereto as Exhibit 1.
SECTION 3. The Successor Agency authorizes the Community Development Director
to:
(1) Provide an administrative cost estimate to the County Auditor-Controller for the period
July 2021 – June 2022, inclusive, based upon the approved Administrative Budget;
and
(2) Submit the Administrative Budget to the Department of Finance; and
(3) Take such other actions and execute such other documents as are appropriate to
effectuate the intent of this Resolution and to implement the Administrative Budget on
behalf of the Successor Agency.
SECTION 4. 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.
APPROVED AS TO FORM:
_____________________________ GEORGE S. CARDONA Interim Successor Agency Counsel
3.F.b
Packet Pg. 169 Attachment: Proposed Resolution: Admin Budget (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))
Exhibit 1 Successor Agency Administrative Budget
Costs FY 2021-22 Total
Total Staffing Costs for approx. 0.9 FTE 215,940
Supplies and Expenses Costs FY 2021-22 Total
Office Supplies and Expenses 1,425
General Liability/Auto 33,729
Conferences, Meetings, Travel 293
Training 261
Mileage 17
Utilities - Telephone 697
Utilities - Water 324
Legal Expense 318
Financial Consultant Services 2,414
Audit Services 8,834
Total Supplies and Expenses Costs 48,311
Total Successor Agency Administrative Costs *264,251
* Per HSC 34171 (b) the administrative cost allowance shall be up to 3 percent of actual property tax
distributed in the preceding fiscal year, less prior year administrative cost allowance and City-Agency loan
repayments pursuant to HSC section 34191.4 (b)
Exhibit 1
3.F.b
Packet Pg. 170 Attachment: Proposed Resolution: Admin Budget (4380 : Approval of Annual Recognized Obligation Payment Schedule (ROPS))