The Successor Agency is performing its functions under Parts 1.8 and 1.85 of the California Health and Safety Code, as amended by Assembly Bill 1484 and other subsequent legislation including Senate Bill 107 (“SB 107”) (together, “Dissolution Law”), to administer the enforceable obligations and wind-down activities of the former Agency, all subject to the review and approval by an Oversight Board.

SB 107 modified the ROPS process and established an annual ROPS starting with ROPS 16-17 and provides for a one time amendment to annual ROPS. The ROPS is “the document setting forth the minimum payment amounts and due dates of payments required by enforceable obligations for each fiscal year as provided in subdivision (o) of Section 34177.”

Under the Dissolution Law, the Successor Agency may consider an amendment to ROPS 19-20 covering the B period of January 1, 2020 to June 30, 2020, and the Amended ROPS 19-20 B must be submitted to the DOF no later than October 1, 2019.

An amendment to ROPS 19-20 has been prepared to increase Redevelopment Property Tax Trust Fund (“RPTTF”) funding for the B period for three Line Items. The amended Line Items on ROPS 19-20 B are detailed as follows. 

1. Line Item No.22 – Brookhurst Triangle DDA, increase RPTTF budget by $28,965. Submittal of multiple change orders due to unanticipated changes in condition to the Brookhurst Triangle Project Site during Phase II demolition, resulted in a need for an amendment to increase the budget for a contract with J&G Industries, Inc., for Project No. S-1232 – Brookhurst Triangle Demolition Project – Phase II.
2. Line Item No.47 – Appraisals, increase RPTTF budget by $13,300.  The County Oversight Board is requesting Successor Agencies expedite the process of disposing of any Successor Agency owned properties.  Garden Grove Successor Agency still owns four properties listed as “Properties to be Sold” on the Approved Long Range Property Management Plan. The current ROPS appraisal budget of $4,200 is not sufficient to cover the cost of conducting appraisals on all four properties to determine their value prior to the sale of each property.  The Successor Agency is requesting the difference in cost to be able to appraise all four properties.    
3. Line Item No.55 – Successor Agency Legal Fees for Limon Litigation, increase RPTTF Budget by $25,000.  New demands placed by Limon Judgment Plaintiffs’ attorneys and financial issues related to the implementation of the Limon Replacement Housing units at Wesley Village result in a need for additional legal services.  

The table below highlights the proposed amendment to the B period in ROPS 19-20 that would increase the B period budget by $67,265 from the Redevelopment Property Tax Trust Fund (“RPTTF”).   

It is recommended that the Successor Agency:

• Adopt the attached Resolution approving Amended ROPS 19-20 B for the period of January 1, 2020 to June 30, 2020, subject to the submittal to and review by the Oversight Board and then by the State Department of Finance; and

• Authorize posting and transmittal of the ROPS.  Further, the Assistant City Manager who oversees the Community and Economic Development Department and her designees, in consultation with legal counsel, shall be authorized to make augmentations, modifications, additions or revisions as may be necessary or directed by Department of Finance.

By:  Monica L. Covarrubias, Project Manager