None to the General Fund. Since dissolution of the Redevelopment Agency, tax increment is now deposited in the Redevelopment Property Tax Trust Fund (RPTTF) which is administered by the County Auditor Controller. Distributions are made semi-annually from the RPTTF by the County Auditor Controller to the Successor Agency to fund the Successor Agency's administrative budget and ROPS. These funds are distinct and separate from other funds used by the Department of Conservation and Development According to state law, any obligation of the Successor Agency that cannot be funded by the RPTTF would not be an obligation of the County.  
  
  
  

Administrative Budget   
  
According to Health & Safety Code Section 34177 of AB x1 26 (the “Dissolution Act”), the Successor Agency prepares a draft administrative budget and submits it to the Oversight Board for approval. Prior to the Oversight Board’s approval of the administrative budget, the Board of Supervisors, acting in the capacity as the governing board of the Successor Agency for the Contra Costa County Redevelopment Agency, should review the proposed administrative budget.  
  
This budget (see Exhibit A) covers the first six-month period of Fiscal Year 13/14 beginning on July 1, 2013 and ending December 31, 2013. The state statute specifies an allowance to the Successor Agency for its administrative costs, using a percentage of property tax revenue allocated by the County Auditor Controller to the Successor Agency to meet enforceable obligations. The distribution from the County Auditor Controller is made based on three percent of the distribution to be received from the Redevelopment Property Tax Trust Funds (RPTTF) or $250,000 for the fiscal year, whichever amount is greater. The County Auditor Controller has indicated that all Successor Agencies will be receiving the minimum amount of $250,000 for RPTTF distribution in June. In the RPTTF distribution in December, the County Auditor Controller will distribution a supplemental administrative allowance in cases where a three percent of a Successor Agency's RPTTF distribution for the fiscal year is greater than $250,000.   
  
For Fiscal Year 12/13, the Successor Agency received at total administrative allowance of $345,331. The Successor Agency estimates that its distribution from the RPTTF for Fiscal Year 13/14 will be similar to the prior year, and is assuming its administrative allowance for Fiscal Year 13/14 will be $345,000. Some Successor Agency staff costs will be project-related and will be charged to non-administrative enforceable obligations (e.g. management of construction projects) shown on the Recognized Obligation Payment Schedule. These non-administrative and project management costs are estimated to contribute $210,000 in revenue for the administrative budget in Fiscal Year 13/14.  
  
Recognized Obligation Payment Schedule 13/14A   
  
The State Department of Finance (DOF) has implemented a new naming convention for Recognized Obligation Payment Schedules prepared for each six-month spending period. The Recognized Obligation Payment Schedule for the July 1, 2013 to December 31, 2013 time period is the fourth one prepared by the Successor Agency. Instead of referring to this Recognized Obligation Payment Schedule as “ROPS 4”, the DOF will be using the naming convention “ROPS 13/14 A”. This naming convention allows the DOF to determine which the six-month period of the fiscal year covered by the ROPS. ROPS 13/14 A is the first half of Fiscal Year 13/14 and ROPS 13/14 B will be the second half of the Fiscal Year 13/14. The ROPS for July1, 2014 to December 31, 2014 will be referred to as “ROPS 14/15 A”.   
  
Adoption of Resolution No. 2013/118 includes adoption of ROPS 13/14A, which is included as Exhibit B to the report. After adoption by the Successor Agency, ROPS 13/14A will be submitted to the Successor Agency's Oversight Board for approval. The Oversight Board is scheduled to meet on February 27, 2013. Once approved by the Oversight Board, ROPS 13/14A will be submitted to the State Controller's Office, the State Department of Finance (DOF) and the Contra Costa County Auditor-Controller and will be posted on the Successor Agency's website. The deadline for submitting ROPS 13/14A is March 1, 2013.   
  
AB 1484, the Dissolution Act "clean-up" legislation, became law on June 27, 2012. It provides a 45-day review period for the DOF once the Oversight Board has approved the ROPS. Within five days of the DOF decision on a ROPS, a Successor Agency may request a meet and confer with the DOF to discuss disputed items.   
  
ROPS 13/14A authorizes all payments to be made by the Successor Agency for enforceable obligations for the six-month time period shown. The monthly payments noted on the ROPS are estimates. In most cases, assumptions made for the ROPS 13/14A were based on actual expenditures in the prior ROPS and expected expenditures in the Third ROPS. If all the expenditures estimated in the previous ROPS are not made for a line item, the ROPS 13/14A will not show a payment amount for that line item but instead refer to the amount shown in the prior ROPS.   
  
Due to some new requirements in AB 1484, the Successor Agency was required to make a $2.2 million payment to the County Auditor Controller from its reserve, which created a negative balance in its reserve fund. To resolve this deficit, several obligations listed in the previous ROPS as coming from reserves are now relisted as funded by the RPTTF.   
  
The title page of ROPS 13/14A shows enforceable obligations funded with the RPTTF amount to $8,282,673. This page also shows the anticipated distribution from the RPTTF to be $5,587,000 for this time period. This amount assumes distribution in the RPTTF has already been set aside for pass-through payments to taxing entities and for the County Auditor Controller administrative costs. In cases where the Auditor Controller determines that RPTTF revenue is not sufficient to meet ROPS obligations, the Auditor Controller will make distributions from the RPTTF according to the priorities established by the Dissolution Act. These priorities are as follows: 1) tax allocation bond debt service payments, 2) pass thru payments, 3) other ROPS obligations, and 4) administrative allowance. In a case where there is residual RPTTF after payment of these priorities, this residual revenue would be distributed to the taxing entities of the former project area based on their tax rates for the area. AB 1484 also provides that half of these residual distribution can be used by the Successor Agency to repay the County for the loan the County made to the former Redevelopment Agency.  
  
The Successor Agency anticipates it will file a notice of insufficient funds with the County Auditor Controller for ROPS 13/14A, as was the case for the prior ROPS. As a result, the Successor Agency will need to defer payment on some of its enforceable obligations to ROPS 13/14B.  
  
Environmental Review   
  
The actions set forth in Resolution 2013/118, 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 financial 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.

Failure to adopt the resolution would require the Board to consider other options for providing and funding staff support for the Successor Agency. Without approving the Recognized Obligation Payment Schedule for the period of July through December 2013, the County Auditor-Controller would not be able to allocate funds to the Successor Agency for staffing services and payment of recognized obligations during this six-month period.  
  

Not Applicable

By unanimous vote with all Supervisors present, Waived the 96-hour time limit in Section 25-2.206 of the County code and accepted the additional staff material (attached) as part of the subject agenda item.

ADOPTED Resolution 2013/118, approving an administrative budget and the draft Recognized Obligation Payment Schedule 13/14A (ROPS 13/14A) for the period of July 1, 2013 - December 31, 2013;

DIRECTED the Director of Conservation and Development to file a Notice of Exemption with the County Clerk and pay the filing fee.