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CC - Item 5D - Submittal of Amended ROPS 20-21 (--, E M F ROSEMEAD SUCCESSOR � 9 O AGENCY BOARD CIVIC PRIDE i. /yC�PORATED o5q TO: THE HONORABLE CHAIR AND BOARD MEMBERS FROM: GLORIA MOLLEDA,EXECUTIVE DIRECTOR 1 ,M DATE: AUGUST 25, 2020 SUBJECT: SUBMITTAL OF AMENDED ROPS 20-21 SUMMARY The Successor Agency's Recognized Obligation Payment Schedule for FY 20-21 ("ROPS FY 20-21") has been approved by the State Department of Finance ("DOF") and the First District Countywide Oversight Board ("COB"). An amendment to the Agency's ROPS 20-21 is necessary to cover all expenditures related to its contractual obligation to reimburse the Rosemead Housing Development Corp. ("RHDC") for any shortfall in net operating revenues, and to receive the full amount of the Administrative Cost Allowance for Agency administrative expenses. STAFF RECOMMENDATION That the Rosemead Successor Agency Board approve Resolution No. 2020-14 SA approving an amended ROPS FY 20-21 for the period July 2020 through June 2021, and further, directing staff to submit the amended ROPS FY 20-21 to the COB and DOF. DISCUSSION Pursuant to the Assistance and Operating Agreements (the "Agreements") for the Angelus and Garvey senior housing projects, the former Commission (and now the Successor Agency) is obligated to reimburse RHDC for any "shortfall" determined by deducting Permitted Operating Expenses from Gross Receipts of the respective housing projects. On the Agency's original ROPS FY 20-21 submission, the DOF approved reimbursement amounts of $110,422 and $50,016, respectively, for the Angelus and Garvey senior housing projects' net revenue shortfalls. Subsequent to the ROPS approval process, a final accounting of FY 18-19 operating revenues was obtained which showed higher shortfall amounts than the amounts presented to DOF. Based on the final operating results, total shortfall amounts were $223,681 and $152,228, respectively, for the Angelus and Garvey senior housing projects. After accounting for the previously approved reimbursement amounts of$110,422 and $50,016, the amended FY 20-21 ROPS will include additional reimbursement requests for $113,259 and $102,212, respectively, AGENDA ITEM 5.D Successor Agency Meeting August 25, 2020 Page 2 of 2 for the Angelus and Garvey senior housing projects. Additionally, under the law, the Agency may request an annual Administrative Cost Allowance ("ACA")of up to $250,000 to cover annual administrative costs of the Agency. The Agency had previously requested (and been approved for by DOF) an annual ACA of$120,000 on ROPS FY 20-21. However, based on projected administrative expenditures for FY 20-21 due to the increased administrative expense for staff and administration of the programs, certain previous administrative expenses being paid by general fund dollars, and the additional expenses being accrued, the Agency will request an additional ACA amount of$130,000 for ACA expenses on the amended ROPS FY 20-21. FISCAL IMPACT The amended ROPS 20-21, if approved by COB and DOF, will result in additional funding to the Agency from the Redevelopment Property Tax Trust Fund("RPTTF") in the amount of$345,196 ($215,196 for the combined housing project additional operating shortfalls, plus $130,000 for additional ACA). PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submi e : • e Scott Mil., Finan T"'.nsultant Attachments: 1. Resolution No. 2020-14 SA 2. Amended ROPS FY 20-21 S E M At& '' -MM./CIVIC PRIDE oRPORA1EO vifr Attachment A Resolution No. 2020- 14 SA RESOLUTION NO. 2020-14 SA A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING AN AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1,2020 THROUGH JUNE 30, 2021 WHEREAS, pursuant to California Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles shall have five consolidated oversight boards encompassing five supervisorial districts; and WHEREAS, the First Supervisorial District Consolidated Oversight Board (Oversight Board) has jurisdiction over the Successor Agency to the Former Redevelopment Agency to the City of Rosemead; and WHEREAS, Section 34177 requires each Successor Agency to prepare a draft Recognized Obligation Payment Schedule (ROPS) and Section 34180 requires the First Supervisorial District Consolidated Oversight Board to approve same; and WHEREAS, Section 34177(o)(1)(E) provides that the Successor Agency may file an amendment to an approved ROPS no later than October 1, and that such amended ROPS must be presented to the Oversight Board for approval; and WHEREAS, the Successor Agency wishes to file an amendment to its previously approved ROPS for the period July 1, 2020 through June 30, 2021 (ROPS 20-21); and WHEREAS, the Successor Agency prepared amendment to the ROPS 20-21 is attached hereto. NOW THEREFORE, THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES: 1. The amended ROPS 20-21 for the period July 1, 2020 through June 30, 2021 attached hereto is hereby approved. 2. Successor Agency staff is directed to provide to the First Supervisorial District Consolidated Oversight Board (a) a copy of this Resolution along with (b) the Successor Agency approved amended ROPS 20-21 and(c) a Resolution for the Oversight Board to approve. 1 PASSED, APPROVED AND ADOPTED this 25th day of August, 2020. Sandra Armenta, Chairperson ATTEST: Ericka Hernandez Successor Agency Secretary APPROVE AS TO FORM Rachel Richman Successor Agency Attorney 2 S e M F 4,a :'9 CfViC PRIDE Milrilli, -r�: 'ED 1S46 Attachment B Amended ROPS FY 20-21 Attachment B Amended Recognized Obligation Payment Schedule(ROPS 20-21 B)-Summary Filed for the January 1,2021 through June 30,2021 Period Successor Agency: Rosemead County: Los Angeles Current Period Requested Funding for Enforceable ROPS 20-21B ROPS 20-21B ROPS 20-21B Obligations(ROPS Detail) Authorized Requested Amended Amounts Adjustments Total A Enforceable Obligations Funded as Follows(B+C+D) $ - $ - $ - B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund(RPTTF)(F+G) $ 675,336 $ 345,471 $ 1,020,807 F RPTTF 615,336 215,471 830,807 G Administrative RPTTF 60,000 130,000 190,000 H Current Period Enforceable Obligations(A+E) $ 675,336 $ 345,471 $ 1,020,807 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 Rosemead Amended Recognized Obligation Payment Schedule(ROPS 20-21 B)-ROPS Detail January 1,2021 through June 30,2021 Authorized Amounts Requested Adjustments Item Total Outstanding Fund Sources Fund Sources # Project Name Obligation Type Obligation Total _ Total Notes Bond Reserve Other Admin Bond Reserve Other Admin Proceeds Balance Funds RPTTF RPTTF Proceeds Balance Funds RPTTF RPTTF $48,517,614 $- S. 5-$615,336 $60,000 $675,336 5- 5- $- $215,471 $130,000 $345,471 3 2010 Tax Increment Bonds Bonds Issued On or $4,723,625 - - - 82,125 - $82,125 - - - - - $- Before 12/31/10 22 Senior Housing Land Lease- Miscellaneous $1,824,000 - - - - - $- - - - - - $- Angelus 23 Senior Housing Operations Miscellaneous $2,262,000 - - - - - $- - - - - - $- Overhead-Angelus 24 Senior Housing Shortfall Subsidy- Miscellaneous $2,785,088 - - - 55,211 - $55,211 - - - 113,259 - $113,259 Angelus 25 Senior Housing Land Lease- Miscellaneous $3,465,184 - - - - - $- - - - - - $- Garvey 26 Senior Housing Operations Miscellaneous $4,250,675 - - - - - $- - - - - - $- Overhead-Garvey 27 Senior Housing Shortfall Subsidy- Miscellaneous $1,282,729 - - - 25,000 - $25,000 - - - 102,212 - $102,212 Garvey 30 Loan Repayment to City of Bond Funded Project- $538 - - - - - $- - - - - - $- Rosemead Pre-2011 34 Administrative Cost Allowance Admin Costs $120,000 - - - - - $- - - - - 130,000 $130,000 35 2016 Subordinate Tax Allocation Bonds Issued After 12/31/ $27,803,775 - - - 453,000 - $453,000 - - - - - $- Bonds 10