80A - RESO APPROV OBLIG PAYMENT SCHED

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Resolution and Appropriation Adjustment — Amended ROPS 18-19B September 4, 2018 Page 2 The annual Recognized Obligation Payment Schedule ("ROPS") for the July 1, 2018 — June 30, 2019 period (18-19) was submitted to the California State Department of Finance ("DOF") by the statutory deadline of February 1, 2018, with the required approval of the local Oversight Board. DOF issued its final determination letter regarding ROPS 18-19 on May 17, 2018 and the County Auditor -Controller distributed funds for the "A" period (July 1, 2018 — December 31, 2018) from the Redevelopment Property Tax Trust Fund ("RPTTF") on May 29, 2018. During the preparation and submission of the ROPS 18-19, it was anticipated that an outstanding obligation pursuant to a disposition and development agreement with an affordable housing developer would be completed by the end of the 17-18 period (June 30, 2018). Therefore, line item 70 of the ROPS regarding this obligation was "retired" for the ROPS 18-19 period. Due to various delays, the outstanding obligation was not completed nor paid by the June 30th date and the obligation remains unpaid. The developer is expected to complete the final steps necessary to qualify for the total $250,000 fee during the "A" period of the BOPS. This fee is the $50,000 developer fee per affordable unit for the last five units of the development project. DOF has issued an amended ROPS 18-19B template for successor agencies if amendments are necessary for payment of approved enforceable obligations during the second half of the ROPS period, pursuant to Health and Safety Code section 34177 (o)(1)(E). DOF has reactivated line item 70 on the ROPS per staffs request and directed Successor Agency staff to amend it to enable the payment of the obligation during the "B" period (January 1, 2019 to June 30, 2019). The developer has agreed to receive payment during the month of January 2019. The new Orange Countywide Oversight Board (OCOB) was established effective July 1, 2018 per SB 107, upon dissolution of each successor agency's local oversight board. The Successor Agency's resolution, along with the amended ROPS 18-19B, will be submitted for OCOB approval at its next regular meeting scheduled for September 18, 2018. Following action by the OCOB, the ROPS will be submitted to DOF, County Auditor -Controller, and the State Controller's Office as required by the Dissolution Act by the October 1, 2018 deadline. The ROPS will also be posted on the Successor Agency's website. The appropriation adjustment is necessary to carry over the funds from prior year for this obligation as the expenditure was budgeted in FY 17/18. DOF's guidance specifies that their determination will be issued at least 15 days before the date of the property tax distribution, which will be mid-December. In anticipation of DOF's approval, staff requests approval of the appropriation adjustment by City Council to expedite the payment in early January 2019. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial environment). 80A-2