Adoption of the EOPS and approval of the ROPS will facilitate the ability of the County as Successor Agency to continue payment of the enforceable obligations of the former Redevelopment Agency and is among the reasonable measures required to be taken to avoid triggering an event of default under any enforceable obligations. The Dissolution Act provides certain limitations on the liabilities of the County when acting in its capacity as Successor Agency. The accompanying resolution establishes certain recommended procedures and makes certain recommended determinations intended to assure, to maximum possible extent, that the operations, funds, other assets, liabilities, obligations, and activities of the Successor Agency are treated as separate and distinct from the normal operations, funds, other assets, liabilities, obligations and activities of the County.
On January 17, 2012 the Board of Supervisors adopted Resolution 2012/29 accepting for the County the role of successor agency (the "Successor Agency") to the Contra Costa County Redevelopment Agency (the “Redevelopment Agency”) and the role of the successor agency to the Redevelopment Agency's housing function. On January 24, 2012, the Board of Supervisors acting as the governing board to the Redevelopment Agency and in accordance with the Dissolution Act, adopted an amended Enforceable Obligations Payment Schedule (the "EOPS") listing all the enforceable obligations for payments required to be made by the Redevelopment Agency through June 30, 2012.
On February 1, 2012, the Redevelopment Agency was dissolved. An oversight board (the "Oversight Board"), consisting of members representing the County and various education and special districts, must be formed no later than May 1, 2012 to approve and direct certain actions of the County as Successor Agency. On February 14, 2012, the Board of Supervisors initiated the process of establishing the Oversight Board.
At this time, it is necessary for the County as Successor Agency to take certain actions to implement various requirements of the Dissolution Act, as follows:
Adopt an amended EOPS. The County as Successor Agency is required to adopt the Redevelopment Agency's EOPS, with certain specified revisions, for approval by the Oversight Board. Until the Recognized Obligation Payment Schedule (the "ROPS") becomes operative, as further discussed below, the County as Successor Agency is only allowed to pay the enforceable obligations of the former Redevelopment Agency on the EOPS as adopted and revised by the County as Successor Agency. The accompanying resolution accomplishes the necessary adoption and revision of the EOPS by the Board of Supervisors, as governing board of the Successor Agency.
Approve ROPS. As required by the Dissolution Act, prior to the March 1, 2012 deadline, staff of the Successor Agency has prepared the first ROPS, also covering enforceable obligations of the former Redevelopment Agency through June 30, 2012, and containing other specified information. The first ROPS is supposed to take effect and replace the EOPS by May 1, 2012. Prior to taking effect, the ROPS must be certified by an external auditor appointed by the County Auditor-Controller and must then be approved by the Oversight Board (a process that may take several months). In order to accelerate the ROPS certification and approval process, and in order to provide a forum for public review and input pending formation of the Oversight Board, it is recommended that the Board of Supervisors, as governing Board of the Successor Agency, consider at a public meeting and preliminarily approve the ROPS, as provided in the accompanying resolution.
Implementation Actions. The accompanying resolution authorizes and directs the County Administrator or the County Administrator's designee to take all steps on behalf of the Successor Agency to implement upcoming requirements under the Dissolution Act, including providing necessary notices, transmittals and postings regarding the EOPS and ROPS, and facilitating the formation and convening of the Oversight Board.
Environmental Review. The actions set forth in the recommended accompanying resolution, as summarized above, are exempt under Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (the "CEQA") in that it can be seen with a certainty that the actions will not have a significant adverse impact on the environment. The actions are required to continue a governmental funding mechanism for enforceable obligations of the former Redevelopment Agency and to perform the statutorily mandated unwinding of the assets, liabilities, and functions of the former Redevelopment Agency pursuant to the Dissolution Act. A Notice of Exemption will be filed with the County Clerk in accordance with the CEQA guidelines.
Next Steps. The Dissolution Act also requires the County as Successor Agency to prepare an administrative budget and submit it to the Oversight Board for approval. Ideally, an administrative budget would be provided with the ROPS. However, due to the tight time lines in the Dissolution Act and the complexity of the ROPS, staff of the Successor Agency will not be able provide the required administrative budget for review by the Successor Agency until sometime in March.
The Successor Agency will not be able to make debt service payments or other payments, unless the Successor Agency adopts the EOPS of the former Redevelopment Agency. Amendments have been made to the EOPS to comply with state statutes.