6we °F MEETING DATE: 9/03/13
u ITEM NO: b
SUCCESSOR AGENCY TO THE TOWN OF LOS GATOS REDEVELOPMENT
SOS ont °g AGENCY
DATE: September 3, 2013
TO: CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY TO THE TOWN
OF LOS GATOS REDEVELOPMENT AGENCY
FROM: GREG LARSON, EXECUTIVE DIRECTOR
SUBJECT: SUCCESSOR AGENCY ACTIONS
ADOPT RESOLUTION APPROVING THE SUCCESSOR AGENCY LONG
RANGE PROPERTY MANAGEMENT PLAN, RECOGNIZED OBLIGATION
PAYMENT SCHEDULE 13 -14B AND ADMINISTRATIVE BUDGET FOR
JANUARY 1, 2014 TO JUNE 30, 2014
RECOMMENDATION:
It is recommended that the Successor Agency take the following actions:
1. Adopt a Resolution approving the Successor Agency Long Range Property
Management Plan, Recognized Obligation Payment Schedule 13 -14B and
Administrative Budget for the period January 1, 2014 to June 30, 2014.
BACKGROUND:
Long Range Property Management Plan
h1 accordance with current State law, the former Redevelopment Agency of the Town of Los
Gatos (Former RDA) is required to prepare a Long Range Property Management Plan
( LRPMP) which outlines the disposition of its former real property (Attachment 1).
The Successor Agency obtained a "finding of completion" from Department of Finance
(DOF) on May 15, 2013, indicating that the Successor Agency has satisfactorily made a series
of required payments of Former RDA funds in accordance with the Redevelopment
Dissolution Statues. Issuance of the finding of completion, now entitles the Successor
Agency to submit this LRPMP for approval by the Oversight Board and DOF.
PREPARED BY: GREG LARSON
Town Manager
Reviewed by: Deputy Director
Counsel
NAMMAdminWorkFiles\2013 Council Repolls \September 3 \TC 9 -3 -2013 SA BOPS 13 -14B
LRPMP staff report.doc
PAGE
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: SUCCESSOR AGENCY DISSOLUTION ACTIONS
September 3, 2013
At the time of the dissolution in 2012, there was one piece of property that transferred
ownership from the Former RDA to the Successor Agency, and, is the subject of this LRPMP.
The property is the public parking building structure located between Elm Street and Grays
Lane (commonly known as Parking Lot 44) in the Town's downtown area and within the
Central Los Gatos Redevelopment Project Area. Only the structure is a Successor Agency
asset while the underlying land has always been owned and, will continue to be owned by the
Town.
The Successor Agency staff contends that ownership of the Building must be transferred to
the Town because the Lease Agreement between the Former RDA and Town explicitly states
that the right, title and interest in the Building shall be transferred to and vested in the Town
as a result of the Town's completion of lease payments /debt service payments under the 1992
Certificate of Participation (COPs). The final debt service payment was made in August
2012. The Successor Agency will be requesting the Oversight Board and DOF to approve the
transfer of ownership of the Building to the Town. Transfer of this property, upon approval of
the LRPMP by the Oversight Board and DOF, will complete the Successor Agency's wind -
down of the RDA dissolution.
Recognized Obligation Payment Schedule
The Successor Agency is required to prepare a proposed administrative budget and a
Recognized Obligation Payment Schedule ( "ROPS ") for each six -month fiscal period, both of
which must be submitted to the Oversight Board for approval. The format for the ROPS was
recently revised and issued by the State Department of Finance and includes all of the
enforceable obligations (payments due) for each six -month fiscal period. Each proposed
administrative budget must include all of the following: (1) estimated amounts for Successor
Agency administrative costs for the applicable six -month fiscal period; (2) proposed sources
of payment for the administrative costs; and (3) proposals for arrangements for administrative
and operations services provided by the Town or other entity.
The Successor Agency is required to submit ROPS 13 -14B (which includes the
Administrative Budget) for the period of January 1, 2014 to June 30, 2014 to the Oversight
Board for approval and then submit the Oversight Board - approved ROPS 13 -14B to the State
Department of Finance, the State Controller and the County Auditor - Controller no later than
October 1, 2013.
In order to meet the State imposed deadlines, Town staff prepared ROPS 13 -14B for the
Successor Agency Board's approval. Staff also recommends that the Board approve the
Administrative Budget for the same period (January 1, 2014 to June 30, 2014). In addition, as
part of the ROPS 13 -14B process, a true -up for the period January 1, 2013 through June 30,
2013 is included. Concurrently, Successor Agency staff has forwarded the proposed ROPS
13 -14B, with the True -up and Administrative Budget with this memorandum to the County
for its review.
PAGE 3
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: SUCCESSOR AGENCY DISSOLUTION ACTIONS
September 3, 2013
Upon approval from the Successor Agency Board, both of these items will be considered for
approval by the Oversight Board for the Successor Agency to the Town of Los Gatos
Redevelopment Agency at its next meeting on September 12, 2013.
CONCLUSION:
It is recommended that the Successor Agency Board adopt the attached resolution
(Attachment 3) authorizing the approval and adoption of Long Range Property Management
Plan, the Recognized Obligation Payment Schedule 13 -14B and the Administrative Budget
for the January 1, 2014 to June 30, 2014 period.
ENVIRONMENTAL ASSESSMENT:
This action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Approval and adoption of the attached Successor Agency's Administrative Budget for January
1, 2014 to June 30, 2014 and Recognized Obligation Schedule 13 -14A (ROPS 13 -14B) for the
same period (January 1, 2014 to June 30, 2014) will ensure the timely payment of enforceable
obligations as listed in Attachment 2.
Attachments:
Attachment 1: Long Range Property Management Plan (without appendices)
Attachment 2: ROPS 13 -14B and Administrative Budget (January 1, 2014 to June 30, 2014)
Attachment 3: Resolution of the Successor Agency of the Town of Los Gatos approving and
adopting the Long Range Property Management Plan, Recognized Obligation
Payment Schedule 13 -14B and Administrative Budget
LONG -RANGE PROPERTY MAN &GEMENT PLAN
(Pursuant to Health and Safety Code section 34191.5)
September 2013
Agency
usnoiusassv7.z ATTACHMENT 1
Introduction and Executive Summary
Procedural Background
This document constitutes the Long -Range Property Management Plan (the "LRPMP ") of the
Successor Agency (the "Successor Agency ") of the former Redevelopment Agency of the Town
of Los Gatos (the "Former RDA "), prepared in accordance with Health and Safety Code Section
34191.5.
The Former RDA was dissolved on February 1, 2012, pursuant to ABxl 26 (as amended by AB
1484, the "Redevelopment Dissolution Statutes "). The Redevelopment Dissolution Statutes
govern the dissolution of the Former RDA, which includes the disposition of its former real
property.
At the time of its dissolution, the Former RDA
transferred to the ownership of the Town of L., s
successor of the Former RDA, as a housing asset
the Successor Agency's Oversight Board (the "Ov
of Finance (the "DOF ") in accordance with Health
As a result, the only remaining property
Agency in connection with the Former R
LRPMP, consists of the public parking bu
Street and Grays Lane (commonly known
within the Central Los Gatos Redevelopme
As fully described in this LRPMP, the Foi
upon which'the Building is constructed in
from which-the Town raised the bond pro
the Town;,the Building has-been operated
any financial: contribution for °such operat
the Successor Aeenev.
two properti__es, one of which has since
(the "Town" ), mits capacity as housing
rized and approved_for such transfer by
Board ') and the California Department
afety Code Section 34176.'
red rto the ownership of the Successor
ion,2 and that is thereby subject to this
V (the "Building ") located between Elm
downtown area and
r RDA leased from the Town the land (the "Site ")
mection with a municipal bond financing issuance
is to build the Building. Since its construction by
i maintained at the expense of the Town, without
and maintenance from either the Former RDA or
The Successor Agency is now responsible for disposition of the Building in accordance with the
procedures and requirements of Redevelopment Dissolution Statutes, with particular reference to
Health and Safety Code Section 34191.1, 34191.3, 34191.4(x), and 34191.5.
The Successor Agency obtained a "finding of completion" from DOF on May 15, 2013, pursuant
to Health and Safety Code Section 34179.7, indicating that the Successor Agency has
satisfactorily made a series of required payments of Former RDA funds in accordance with the
' The Former RDA property at 224 West Main Street is a housing asset that has transferred by operation of Health
and Safety Code Section 34176 and the approval of the Oversight Board and the DOF to the Town. Another
housing asset of the Former RDA, the property at 20 Dittos Lane, was already recorded in the name of the Town at
the time of the dissolution of the Former RDA.
2 Health and Safety Code Section 34175(b) provides that the assets and properties of the Former RDA transferred to
the Successor Agency upon dissolution of the Former RDA on February 1, 2013.
1151 \01 \1383597.2
Redevelopment Dissolution Statues. Issuance of the finding of completion, now entitles the
Successor Agency to submit this LRPMP for approval by the Oversight Board and DOF. In
addition, on September 3, 2013, this LRPMP was presented to and approved by Successor
Agency governing board (the Los Gatos Town Council, serving in its separate capacity as the
governing board of the Successor Agency).
This LRPMP is scheduled for consideration by the Successor Agency's Oversight Board on
September 12, 2013 and, if approved by the Oversight Board, will be transmitted to the DOF for
its approval in accordance with Health and Safety Code Section 34191.5(b).
Proposed Building Disposition
Health and Safety Code Section 34191.5 authorizes four categories for disposition of a successor
agency's property, as summarized in Table 1:
Table 1: Permitted Uses/Disposition of Successor Agency Real Propepty Under a Long -Range
Property Management Plan (Health and Safety Code Section 34191.5)
Plan Category
Use/DispositionPur ose of Pro er ` ,
Property Transferee
Enforceable
Use Consistent with Enforceable Obligation
Designated Enforceable
Obligation
Terms
Obligation Recipient
Governmental
Governmental Use in Accordance with Section
Appropriate Public
Jurisdiction
Approved
=Direct Use, or Liquidation -an-( Use of
Redevelopment
- _Proceeds, for Project Identified in Approved
Host Community
Plan Project
Redevelopment Plan
(City of County)
Other Liquidation
Drstnbution of ,Sale Proceeds as Property
Approved Purchase
_Taxes to Affected Taxing Entities
For the reasons detailed 'M this plan,, _the Building qualifies for disposition to the Town as a
property that is the subject of an enforceable obligation that contractually requires the Successor
Agency to convey the Building:to the Town without payment or compensation by the Town.
Consequently, as further detailed in Part II below, this LRPMP directs the conveyance of the
Building by the Successor Agency to the Town upon approval of the LRPMP, without
........ _.
compensation or payment, and without the requirement for farther action or approval of the
Oversight Board and the DOF (beyond the initial approval of this LRPMP itself).
Organization of LRPMP
In accordance with Health and Safety Code Section 34191.5(c), Part I of this LRPMP contains
an inventory of specified information related to the Building, and Part II addresses and sets forth
the proposed plan for disposition of the Building. Accompanying this LRPMP is the information
checklist required by the DOF (Appendix A). Because this LRPMP involves only one property
for which the required information can be readily portrayed and accessed through the following
2
1151 \01 \1383597.2
text, it has not been deemed necessary to also prepare the optional DOF tracking worksheet that
can be particularly useful for more complex LRPMPs.
Part I: Building Background and Description; LRPMP Information
Inventory
This Part provides the required inventory information for the Building that was transferred from
the Former RDA to the Successor Agency. Following an overview statement regarding the
Building's background and description, this inventory is organized to address the specific
LRPMP inventory subsections listed in Health and Safety Code-Section 34191.5(c)(1), with each
item corresponding to the specific letter of this section of the Health and Safety Code (e.g., item
"(A) " provides the required information from HSC Section 34- 191.5(c)(1)(A) and so forth).
Overview
The Building is a public parking garage containing 108 parking spaces available to employees,
customers, and visitors to the Los Gatos downtown_ area. The Building was designed and
constructed by the Town for this unique purpose and has no, other potential use..
The Building is built on the Site, which is Assessor's Parcel No. 529- 03 -67, an approximately
65,990 square foot parcel of land located_between Elm Street and Grays Lane that is owned in
fee by the Town. It should be emphasized that the-Site was never- owned by the Former RDA, is
not now owned by the Successor Agency; and is therefore not a subject of this LRPMP or
available for disposition in accordance with the Redevelopment Dissolution Statutes. Rather, the
Town intends to continue to own the Site on a.long-term basis m =order to continue to operate the
Building on the Site asa public parking facility
The Site was leasei1by the Town to the Rarmer RDA pursuant to a 1992 site lease (the "Site
Lease" )s. Pnsuant` to a simultaneous lease agreement (the "Lease Agreement "), a copy of which
is attached,to this LRPMP"as Appendix B, the Former RDA subleased the Site and the Building
as constructed by the Towu back to the Town for operation as public parking facility. The Site
Lease and Lease Agreement were entered into as security for issuance by the Town of its 1992
Certificates of Participation (Parking Lot #4 Project) (the "1992 COPS "), the proceeds of which
were used by the Town in part to pay the costs of acquisition and construction of the Building.
The 1992 COPS constitute "indebtedness obligations" under Health and Safety Code Section
34171(e). Because the Site Lease and Lease Agreement were entered into in connection with the
issuance of the 1992 COPS that constitute indebtedness obligations, the Site Lease and the Lease
Agreement continue to constitute "enforceable obligations" under Health and Safety Code
Section 34171(d)(2).3 In turn, pursuant to Health and Safety Code Section 34177(c), the
Successor Agency is directed and required to "perform obligations required pursuant to any
enforceable obligation ", which in connection with the Building requires the Successor Agency to
3 For this reason, unlike most typical agreements between a redevelopment agency and its sponsoring community,
the Site Lease and the Lease Agreement were not rendered invalid pursuant to Health and Safety Code Section
34171 (d)(2) or Section 34178(a) at the time the Former RDA was dissolved
1151 \01 \1383597.2
perform the obligations of the Former RDA under the Site Lease and the Lease Agreement that
continue to constitute enforceable obligations under the Redevelopment Dissolution Statutes.
Section 4.5 of the Lease Agreement contains an express obligation of the Former RDA (and now
the Successor Agency as its successor entity) to transfer ownership of the Building to the Town
once the Town has made all required lease payments under the Lease Agreement. Section 4.5 of
the Lease Agreement states in relevant part:
"If the Town ... pays all Lease Payments during the Term of this Lease Agreement as the
same become due and payable, all right, title and interast_of the [Former RDA] under the
Site Lease in and to the [Building]... shall be transfeYrecZlo and vested in the Town. The
[Former RDA] agrees to take any and all steps and execute and record any and all
documents reasonably required by the Town to consummate any such transfer. "
Neither Section 4.5 or any other provision of the Lease Agreement or the other 1992 COPS -
related documents calls for or requires any payment or other form of compensation from the
Town in connection with transfer of the Building to the Town once the TOWW -has made all the
lease payments required under the 1992 COPS
The Town timely made all the lease payments in order to timely pay all debt service and other
amounts due with respect to the 1992 COPS, including the final lease payment/debt service
payment that was paid by the Town on or about August 1, 2012 as illustrated in Appendix C with
the November 30, 2012 US bank statement illustrating final distribution of $254,136.29.
Appendix C, page 2 shows the balance of the 1992 COP account as of December 31, 2012 to be
zero, reflecting full payment of alt amounts due on the 199TCOPs. The $254,136.29, balance
remaining following such full payment, was received by the Successor Agency and is currently
being held in the Successor Agency trust account. _1Jpon approval of the LRPMP by the
Oversight.Bbdrd and the DOF and as part of the disposition of the Building, this money will be
transferred _to the 06unty for distribution to the taxing entities. As a result of the Town's final
lease payment, title in and to the Building technicdty transferred to the Town under the express
terns of the Lease Agreement Section 4.5 enforceable obligation provision on or about August 1,
2012.
However, because the_Redeveloprrient Dissolution Statutes (as amended by the June 27, 2012
enactment of AB 1484) suspended the Successor Agency's authority to dispose of most types of
property until it had obtained an approved LRPMP,4 out of an abundance of caution the
Successor Agency refrained from providing the executed and recorded documents to
memorialize this transfer of the Building to the Town, as required by the last sentence of Lease
Agreement Section 4.5 (quoted above), until it had prepared and obtained approval of this
LRPMP.
4 See Health and Safety Code Section 34191.3.
4
1151 \01 \1383597.2
Required Inventory Information
(A) Acquisition Information. The Site Lease by which the Successor Agency obtained its
temporary leasehold interest in the Site from the Town was dated as of August 1, 1992.
Thereafter, the Building was constructed on the Site by the Town using the proceeds of the
1992 COPS issuance and thereupon became the leasehold property of the Former RDA.
The Former RDA made no payments under the Site Lease or the Lease Agreement in
connection with this acquisition of the temporary leasehold interest in the Site and the
Building as constructed on the Site by the Town.5
At the time of its construction, the Building was
current net book value of the Building is $2,237,2
,708.02. The estimated
(B) Purpose of Acquisition. As noted, the Former RDA's acquisition of the leasehold interest
in the Site and the constructed Building was undertaken Is a-financfiig mechanism to
provide security for issuance and repayment of the 1992 COPS, the proceeds of which were
in turn used to pay the costs of develop, rii of the Building. Thus mechanism allowed the
issuance to the 1992 COPS buyers of "certificates of.participatlon" in the lease payments
owed by the Town under the Lease Agreement m connection with the To_ wn's leaseback
from the Former RDA of the Sate and _the constructed Building.
(C) Parcel Data. The Building consists of a T Off -pace publi parking garage built by the Town
on the Site owned by -the Town and leased to the Former RDA, In turn, the Site consists of
Assessor's Parcel No. X29.03 -67, a approximately= 65,990 ``square foot parcel of land
located betweeWRIfn Street and Grays Lane. The legaltlescription of the Site can be found
in Exhibit B of tl e&Lease Agreement (which is attached to this LRPMP as Appendix B).
The Los Gatos General Plan designation for the Site owned by the Town is "Central
Business District ", which- includes the provison,of public parking. The zoning designation
of the Site owned by the - bWn is "C -2`(C ntraYBusiness District) ", which also allows the
provision of public narking
(D) Current Value. As noted above, the_estimated current net book value of the Building is
$2,237,239.42. This estimate is based on the amortized depreciation costs. There is no
current appraisal information. with respect to the Building.
(E) Revenues Generated By the Buildings. The operation of the Building does not generate any
parking fees or any lease, rent, or other revenue to the Town or any other entity. The Town
has determined that, in order to meet the public need for parking facilities to accommodate
reasonable traffic circulation in the downtown area and to promote patronage at local
business establishments, it is not feasible or appropriate to charge any fees for the public
s Under a Reimbursement Agreement between the Town and the Former RDA executed concurrently with issuance
of the 1992 COPS and the execution of the Site Lease and the Lease Agreement, the Former RDA agreed to make
specified payments to the Town to be used by the Town toward the Town's obligation to make debt service
payments on the 1992 COPS. The payment obligations of the Former RDA under the Reimbursement Agreement
have been determined by the Oversight Board and the DOF to constitute enforceable obligations payable on
successive Recognized Obligation Payment Schedules prepared by the Successor Agency.
5
1151 \01 \1383597.2
parking in the Building. The Building also does not generate any lease, rental, or other
revenue.
The Town estimates that it is required to spend approximately $7,500 annually on routine
operation and maintenance costs for the Building. These costs are paid from general Town
financial sources and not from either Former RDA or Successor Agency funds. As such,
the Building operates as a public parking resource at an annual net loss to the Town in
order to meet the Town's traffic circulation and downtown commercial revitalization
objectives.
(F) Environmental Contamination and Remediation. The Successor Agency is not aware of
any environmental contamination or remediation needs ih connection with the Building.
(G) Potential for Transit- Oriented Development t
its current use as an off - street public parki
important Town planning objectives im,
revitalization and use of the downtown egrf
public infrastructure and private developing
density development patterns that require new
For instance, the most recent available=
availability of approximately 888 pnbli
108 spaces, or over 12 °!0 of the total),
available parking spaccs. The report;
total spaces than are reported as bei
component of the public parking pro€
materially helps to reduce the deficit in
!d Advancement of Planning Objectives. In
facility, the Building and the Site serve
promote compact;, pedestrian friendly
area, thereby taking4dyantage of existing
t patterns, -and avoiding -;spread-out, lower
analysis, for the downtown area indicates the
Ig lot spaces (of which the Building provides
on street parking spaces, for a total of 1,775
iicated_a need for approximately 800 more
Table. Thus, the Building is an essential
meet the needs of the downtown area, and
irking that exists in the downtown.
g provided in the Building contributes directly to the viability of small
and independent stores that could not feasibly provide their own separate
lities. Further, because the Building aggregates needed parking in an efficient
lity, it also contributes to a pedestrian friendly street environment that is an
important i own onlecttve.
In these ways, the Building supports important Town planning goals and policies as set
forth in the Town of Los Gatos 2020 General Plan (January 7, 2011) (the "General Plan"),
Among the General Plan goals and policies directly served by the Building and the use of
the Site for off - street public parking are the following:
"Goal LU -10: To preserve Downtown Los Gatos as the historic center of Town,
with goods and services for local resident, while maintaining the existing Town
identity, environment and commercial viability. "
"Policy LU -10.1: Encourage the development and retention of small businesses
and independent stores and shops Downtown that are consistent with the small -
town character and scale. "
6
1151 \01 \1383597.2
"Policy LU- 10.2a: Recognize and encourage different fametions, land use
patterns, and use mixes of the various commercial areas of the Downtown. These
include: the pedestrian scale and orientation of the Central Business District... "
"Goal TRA -14: To ensure that there is adequate parking in Downtown to meet the
needs of Los Gatos residents and visitors."
"Policy TRA -14.4: Maximize the utilization of existing parking lots and spaces to
meet Downtown business and residential demands;"
(H) History of Development Proposals and Activity. Begause the Building and the Site have
long been used as an off -site public parking facility and because the Town intends to
maintain this use to meet the goals, objectives and poli66 outlined above, there is no
history over the past two decades of development proposals W. activity for any different
use, rental or lease of the Building and the Sife.
Part H: Building Disposition and Use
Plan of Building Disposition and
This LRPMP calls for the disposition and us
Upon the approval of the LRPMP by the
conveyed by the Successor Agency to the
Town, and without further, action or'; appro`
approval of the LRPMP itself. At such tir
of
are andfabriate to
Board ,and the_DOF, the Building shall be
thout compensation or payment from the
Oversight Board or the DOF (beyond the
ccessor Agency Executive Director, or the
ected to take such actions, including the
tints on behalf of the Successor Agency, as
Building to the Town.
As noted in Part I of this LRPMP, the 1992. COPS- related documents do not require any payment
or other form of compensation from the Town for the transfer of the Building once the Town is
eligible for such transfer following°the making by the Town of all required lease payments. In
addition, for three reasons, Health -and Safety Code Section 34180(f)(1) does not apply to the
circumstances of this transfer of the Building to the Town. Section 34180(f)(1) states in relevant
part: "If a city ... wishes to retain any properties... for future redevelopment activities, funded
from its own funds and under its own auspices, it must reach a compensation agreement with the
other taxing entities to provide payments to them..." First, the Town does not seek to "retain" the
Building, but instead to receive a transfer of the title to the Building from the Successor Agency
to which the Town is entitled under an existing enforceable obligation. Further, the Building is
not intended for future redevelopment activities, but rather for the continuation of its nearly two
decades use as a previously redeveloped parking facility. Finally, to impose a compensation
requirement would be inconsistent with the requirement of Health and Safety Code Section
34177(e) that requires the Successor Agency to perform the remaining enforceable obligation set
1151\01 \1383597.2
forth in Lease Agreement Section 4.5 to execute such documents as are necessary to transfer the
Building to the Town without compensation.
Reasons For Plan of Disposition
This disposition of the Building to the Town is authorized as a transfer as an enforceable
obligation, as follows.
As detailed in Part I, under Health and Safety Code Section 34171(d)(2), Section 4.5 of the
Lease Agreement constitutes a remaining valid enforceable obligation of the Successor Agency
to the Town.
In turn, Lease Agreement Section 4.5 states that the right, title- and interest in the Building shall
be transferred to and vested in the Town as a result of the,-'-Town's completion of lease
payments /debt service payments under the 1992 COPS, and obligates._ the Successor Agency to
take any and all steps and execute and record ''all documents necessary to memorialize the
transfer of the Building to the Town.
Finally, pursuant to the Legislature's mandate in Health and Safety Code Section 34177(c), the
Successor Agency is directed to perf.... s remaining enforceable obligation to document the
transfer of the Building to the Town
8
1151 \01\1383597.2
APPENDIX A
111: »Vilawf
A -1
1 151 \01 \1383597.2
•a• _.
LEASE AGREEMENT
B -1
1151 \01 \1383597.2
APPENDIX C
US BANK STATEMENTS
B -2
1151 \01 \1383597.2
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ATTACHMENT 2
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Recognized Obligation Payment Schedule (ROPS) 13 -14B - Report of Fund Balances
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177(1), 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
I
J
K
Fund Sources
Bond Proceeds
Reserve Balance
Other
RPTTF
Review balances
retained for
Bonds Issued
Bonds Issued
approved
RPTTF balances
Rent,
on or before
on or after
enforceable
retained for bond
Grants,
Fund Balance Information by ROPS Period 1
12/31/10
01/01/11
obligations
reserves
Interest, Etc.
Non -Admin
Admin
Total
Comments
ROPS III Actuals (01101/13 - 6130/13)
Beginning Available Fund Balance (Actual 01/01113)
Note that for the RPTTF, 1 + 2 should tie to columns L and Q in the
1
Report of Prior Period Adjustments (PPAs)
42,642
1,963,314
$ 2,005,955
Represents reserves 2002 and 2010 COPS
Revenue /Income (Actual 06/30/13) Note that the RPTTF amounts
should tie to the ROPS III distributions from the County Auditor -
2
Controller
499,839
125,000
$ 624,839
Expenditures for ROPS III Enforceable Obligations (Actual
06/30/13) Note that for the RPTTF, 3 + 4 should tie to columns N
3
and S in the Report of PPAs
499,839
125,000
$ 624,839
Retention of Available Fund Balance (Actual 06130/13) Note that
Column E represents 1992 COP reserve
the Non -Admin RPTTF amount should only include the retention of
established March 2013 per DDR in SA RDA
4
reserves for debt service approved in ROPS 111
42,642
254,136
1,963,314
$ 2,260,092
Trust
ROPS III RPTTF Prior Period Adjustment Note that the net Non -
Admin and Admin RPTTF amounts should tie to columns O and T
No entry required
5
in the Report of PPAs.
-
27,792
$ 27,792
6
1 Ending Actual Available Fund Balance (1 + 2 - 3 - 4 - 5)
$
$
$ (254,136)1
$
$
$
$
$ (281,928)
ROPS 13 -14A Estimate (07101113 - 12/31/13)
Beginning Available Fund Balance (Actual 07/01113) (C, D, E,
7
G, and 1=4+6,F= H4 + F6, and H=5+6)
$ 42,642
$
$
$ -
$
$ -
$ 27,792
$ 2,005,955
Revenuelincome (Estimate 12/31113)
Note that the RPTTF amounts should tie to the ROPS 13 -14A
8
distributions from the County Auditor - Controller
1,458,039
125,000
$ 1,583,039
Expenditures for 13 -14A Enforceable Obligations
9
Estimate 12/31113)
1,458,039
125,000
$ 1,583,039
Retention of Available Fund Balance (Estimate 12131/13)
Note that the RPTTF amounts may include the retention of
10
reserves for debt service approved in ROPS 13 -14A
$
11
Ending Estimated Available Fund Balance (7 + 8 -9 -10)
$ 42,642
$
$
$
$
$
$ 27,792
$ 2,005,955
Dw
Rft*gnized Obligation Payment . ;'.
ReporuxJ for me ROPS III (January 1, 2013ttum,h June W.
10
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DRAFT
Recognized Obligation Payment Schedule (ROPS ) 13 -14B - ROPS Detail
January 1, 2014 through June 30, 2014
(Report Amounts in Whole Dollars)
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Item #
Project Name 1 Debt Obligation
Obligation Type
Contract /Agreement
Execution Date
Contract/Agreement
Termination Date
Payee
Description/Project Scope
Project Area
Total Outstanding
Debt or Obligation
Retired
Funding Source
Six -Month Total
Non - Redevelopment Property Tax Trust Fund
(Non- RPTTF)
RPTTF
Bond Proceeds
Reserve Balance
Other Funds
Non - Admin
Admin
$ 31,387,135
$ -
$ -
$ -
$ 480.739
$ 94,313
$ 575,052
1
2002 COP Reimbursement
7/1/2002
11112031
The BNY Mellon Trust Co.
N.A.
Reimbursement Agreement
Central Los Gatos
12,303,473
N
193,726
$ 193,726
2
2010 COP Reimbursement
6/1/2010
11112028
The BNY Mellon Trust Co.
N.A.
Reimbursement Agreement
Central Los Gatos
18,830,463
N
287,013
$ 287,013
3
200212010 COP Bank Services
Fees
71112002
The BNY Mellon Trust Co.
N.A.
Bank Services Charges
Central Los Gatos
3,200
N
$ -
4
S.A. & O.B. Administration
Expenses
11112012
1/1/2013
Successor Agency
Administrative Allowance per Admin
Budget
Central Los Gatos
250,000
N
94,313
$ 94,313
7
RDA Reserve for COP Payments
6/112010
The BNY Mellon Trust Co.
N.A.
Reserve Required for COP Payments
Central Los Gatos
N
$ -
8
RDA Reserve for COP Payments -
Note 1
7/112002
1/1/2031
The BNY Mellon Trust Co.
N.A.
Required Reserve Per bond indenture
Central Los Gatos
N
$ -
$
$
$
$
$
$
$
$
$
$
$
$
S
S
$
$
$
DRAFT
Recognized Obligation Payment Schedule 13 -14B - Notes
January 1. 2014 throuah June 30. 2014
Item # I Notes /Comments
1 Beginning with ROPS 14 -15A the Successor Agency will include $306,823 to beginning building this reserve.
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t.
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE TOWN OF LOS GATOS APPROVING LONG RANGE
PROPERTY MANAGEMENT PLAN, RECOGNIZED OBLIGATION PAYMENT
SCHEDULE 13 -14B AND ADMINISTRATIVE BUDGET
RECITALS
WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code
Section 33000 et SeMc .; the "Redevelopment Law "), the Town Council (the "Town Council ") of the Town of Los
Gatos (the "Town ") adopted Ordinance No. 1882 on November 25, 1991, adopting the Redevelopment Plan for
the Central Los Gatos Redevelopment Project Area (the "Redevelopment Plan"), as amended from time to time;
and
WHERAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency") is responsible for
implementing the Redevelopment Plan pursuant to the Redevelopment Law; and
WHEREAS, ABxl 26 (the "Dissolution Act ") was enacted on June 28, 2011; and
WHEREAS, AB 1484 enacted June 27, 2012, established requirements and revised certain dates for
performance of actions under the Dissolution Act; and
WHEREAS, on May 15, 2013, the Successor Agency received a "Finding of Completion" from the
California Department of Finance (the "DOF ") pursuant to Health and Safety Code Section 34179.7, confirming
that the Successor Agency had made specified required payments under the Dissolution Law; and
WHEREAS, pursuant to Health and Safety Code Section 34191.5(b), the Successor Agency is now
entitled to and must prepare and submit a Long -Range Property Management Plan (the "LRPMP ") in
connection with the property assets of the Successor Agency to the Oversight Board and the DOF no later than
six months following the issuance by the DOF of the Finding of Completion; and
WHEREAS, the only property of the Former RDA that was transferred to the Successor Agency upon
the dissolution of the Former RDA pursuant to Health and Safety Code Section 34175(b) and that is now
subject of a LRPMP is the public parking building structure (the "Building ") located between Elm Street and
Grays Lane (commonly known as Parking Lot #4) in the Town's downtown area and within the Central Los
Gatos Redevelopment Project Area; and
WHEREAS, pursuant to Health & Safety Code 34177(1), the Successor Agency to the Town of Los
Gatos Redevelopment Agency (the "Successor Agency") must prepare a proposed Recognized Obligation
Payment Schedule ( "ROPS ") before each six -month fiscal period (commencing each January 1 and July 1) and
submit each proposed ROPS to the oversight board for the Successor Agency (the "Oversight Board ") for
approval; and,
WHEREAS, pursuant to Health and Safety Code Section 341770), the Successor Agency to the Town
of Los Gatos Redevelopment Agency (the "Successor Agency") must prepare a proposed administrative budget
before each six -month fiscal period (commencing each January 1 and July 1) and submit each proposed
administrative budget to the oversight board for the Successor Agency (the "Oversight Board ") for approval;
and,
ATTACHMENT
WHEREAS, pursuant to Health and Safety Code Section 34177(1)(2)(B), at the same time that the
Successor Agency submits a ROPS to the Oversight Board for approval, the Successor Agency must submit a
copy of such ROPS to the State Department of Finance (the "DOF"), the County administrative officer, and the
County Auditor - Controller; and,
WHEREAS, pursuant to Health and Safety Code Section 34177(1)(2)(C) and (m), the Successor
Agency must (1) submit the Oversight Board- approved ROPS for the six -month fiscal period from January 1,
2014 to June 30, 2014 ( "ROPS 13- 1413"), to the DOF, the Office of the State Controller, and the County
Auditor - Controller no later than October 1, 2013; and (2) post a copy of the Oversight Board- approved ROPS
13 -14B on the Successor Agency's website; and,
WHEREAS, under Title 14 of the California Code of Regulations, Section 15378(b)(4), the approval of
the Recognized Obligation Payment Schedule is exempt from the requirements of the California Environmental
Quality Act ( "CEQA ") in that it is not a project, but instead consists of the continuation of an existing
governmental funding mechanism for potential future projects and programs, and does not commit funds to any
specific project or program, because it merely lists enforceable obligations previously entered into and approved
by the Agency; and
WHEREAS, the Agency's board of directors (the "Agency Board ") has reviewed and duly considered
the Staff Report, the proposed LRPMP, ROPS 13 -14B and Administrative Budget, and documents and other
written evidence presented at the meeting.
NOW, THEREFORE, BE IT RESOLVED, that the Agency Board finds that the above Recitals are
true and correct and have served, together with the supporting documents, as the basis for the findings and
approvals set forth below.
BE IT FURTHER RESOLVED, that the Agency Board finds, under Title 14 of the California Code of
Regulations, Section 15378(b)(4), that this resolution is exempt from the requirements of CEQA in that it is not
a project.
BE IT FURTHER RESOLVED, that the Agency Board hereby approves and adopts the Long Range
Property Management Plan, Recognized Obligation Payment Schedule 13 -14B (January 1, 2014 to June 30,
2014), Administrative Budget and True -Up for the period January 1, 2013 to June 30, 2013.
BE IT FURTHER RESOLVED, the Agency Board authorizes and directs the Agency's Executive
Director or the Executive Director's designee to take such other actions and execute such other documents as are
appropriate to effectuate the intent of this Resolution and to implement the LRPMP and ROPS 13 -14B on
behalf of the Agency as required by State law.
BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption.
PASSED AND ADOPTED at a regular meeting of the Agency Board for the Successor Agency of the
Redevelopment Agency of the Town of Los Gatos held on the by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
CHAIR OF THE AGENCY BOARD FOR
REDEVELOPMENT AGENCY OF THE TOWN OF
LOS GATOS
ATTEST:
CLERK ADMINISTRATOR/SECRETARY OF THE
AGENCY BOARD AND SUCCESSOR AGENCY
OF THE REDEVELOPMENT AGENCY OF THE
TOWN OF LOS GATOS