THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA M E M O R A N D U M 11 DATE: DECEMBER 15, 2011 VARIOUS TO: CRA/LA BOARD OF COMMISSIONERS FROM: CHRISTINE ESSEL, CHIEF EXECUTIVE OFFICER STAFF: STEVE VALENZUELA, CHIEF FINANCIAL OFFICER DAISY PAN, ADMINISTRATIVE SPECIALIST SUBJECT: Amendment to Enforceable Obligation Payment Schedule. Fourth Amendment to Adopted Enforceable Obligation Payment Schedule, in accordance with Assembly Bill 1x-26. All Regions (CDs 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 14 and 15) RECOMMENDATIONS That the CRA/LA Board of Commissioners amend the Enforceable Obligation Payment Schedule (EOPS) pursuant to AB1x-26, and direct staff to post the amended schedule on the CRA/LA website, transmit copies to the Los Angeles County Auditor-Controller, the State Controller and the California Department of Finance. SUMMARY The CRA/LA is currently operating under AB1x-26, the redevelopment “dissolution” bill adopted as a trailer bill to the State budget (California Statutes 2011, Chapter 5, approved by the Governor on June 28, 2011). On August 11, 2011, the California Supreme Court ordered a stay stopping implementation of most sections of AB1x-26 and all of its companion legislation, AB1x- 27. On August 17, 2011 the Court modified its order to permit implementation of certain sections of AB1x-26 and AB1x-27. Overall, the effect of the two Court orders is to keep the CRA/LA in a state of suspension by prohibiting it from engaging in new activities. The August 17, 2011 order, however, reinstated the requirement that the CRA/LA adopt, at a public hearing, an Enforceable Obligation Payment Schedule (EOPS), listing the CRA/LA’s payment obligations through December 31, 2011. The CRA/LA adopted the EOPS on August 18, 2011, which was subsequently amended on September 15, 2011, October 6, 2011, and November 3, 2011 (Section 34169 provides that the EOPS may be amended at any public meeting of the CRA/LA). Once adopted, the amended EOPS will be posted on the CRA/LA Website. PREVIOUS ACTIONS August 18, 2011 – CRA/LA adoption of the Enforceable Obligation Payment Schedule. September 15, 2011 – CRA/LA amendment of the Enforceable Obligation Payment Schedule. October 6, 2011 – CRA/LA amendment of the Enforceable Obligation Payment Schedule. November 3, 2011 - CRA/LA amendment of the Enforceable Obligation Payment Schedule. AMENDMENT TO ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PAGE 2 DISCUSSION & BACKGROUND CRA/LA adopted its EOPS on August 18, 2011 and subsequently amended it on September 15, 2011, October 6, 2011, and November 3, 2011. As required by AB1x-26, both the adopted and amended EOPS were posted on the CRA/LA website and separately transmitted to the Los Angeles County Auditor-Controller, the Office of the State Controller, and the California Department of Finance, respectively. Subsequent to the Board’s most recent actions, staff identified additional enforceable obligations that need to be included in the EOPS: one court ordered settlement agreement and other payments for the administration or operation of the CRA/LA. SOURCE OF FUNDS Tax Increment, Low and Moderate Income Housing Funds, Taxable and Tax Exempt Bond Proceeds, General Revenue, and grants from various project areas. PROGRAM AND BUDGET IMPACT The action is consistent with the Revised FY2011-12 CRA/LA Budget. There is no impact on the City’s General Fund as a result of this action. ENVIRONMENTAL REVIEW The proposed action is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”), as specifically provided in CEQA Guidelines section 15378(b)(4), and thus is not subject to CEQA pursuant to the CEQA Guidelines section 15060(c)(3). Christine Essel Chief Executive Officer By: David Riccitiello Deputy Chief Executive Officer There is no conflict of interest known to me which exists with regard to any CRA/LA officer or employee concerning this action. ATTACHMENTS Attachment A. Amended Enforceable Obligation Payment Schedule ATTACHMENT A AMENDED BY THE CRA/LA BOARD: DECEMBER 15, 2011 Name of Agency: The Community Redevelopment Agency of the City of Los Angeles FUNDING SOURCE: Project Area(s) Laurel Canyon; North Hollywood; Pacoima/Panorama City; Adelante Eastside; Monterey Hills; Reseda/Canoga Park; East Hollywood/Beverly Normandie; Hollywood; Mid City Corridors; 1. Low & Moderate Income Hsg Fund Pico Union 1; Pico Union 2; Westlake; Wilshire Center/Koreatown; Bunker Hill; Central Industrial; Chinatown; City Center; CD9 Cooridors; Little Tokyo; Broadway/Manchester; 2. Bond proceeds Crenshaw; Expositon/University Park; Normandie 5; Vermont/Manchester; Watts; Watts Corridors; Western/Slauson; Beacon Street; Pacific Corridor; and LA Harbor Industrial Center 3. Reserve balances 4. Administrative cost allowance ENFORCEABLE OBLIGATION PAYMENT SCHEDULE 5. Property Tax Trust Fund Per AB 26 - Section 34167 and 34169 (*) 6. Other revenue sources Total Category Cost Execution Outstanding Debt Funding PAYMENTS BY MONTH Line # (Contract / PO / Loan #) Center Payee Date Description or Obligation Source Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Total 1 100519 710 A BRIDGE BETWEEN NATIONS 04/13/10 Translation Equipment 434.26 4 0.00 434.26 0.00 0.00 0.00 $ 434.26 2 110531 720 A COMMUNITY OF FRIENDS 04/26/11 Consultant Artwork Services 20,201.08 6 4,040.22 4,040.22 4,040.22 4,040.22 4,040.22 $ 20,201.10 3 120042 370 A D T Security Service See Note 3 APO - Alarm Sercurity Services 2,000.00 4 0.00 500.00 500.00 500.00 500.00 $ 2,000.00 4 090843 350 A T & T 06/24/09 San Pedro Telephone/Data Installation Services 9,015.40 4 1,803.08 1,803.08 1,803.08 1,803.08 1,803.08 $ 9,015.40 5 090850 350 A T & T GLOBAL SERVICES 11/04/10 Equipment/Installation for Site Office - HW 12,000.00 4 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 $ 12,000.00 6 100605 350 A T & T GLOBAL SERVICES 06/07/10 VOIP Phone Implementation 3,238.11 4 647.62 647.62 647.62 647.62 647.62 $ 3,238.10 7 110141 350 A T & T GLOBAL SERVICES 08/19/10 Equipment Rental 216.07 4 0.00 216.07 0.00 0.00 0.00 $ 216.07 8 100103 760 A V MASTERS INC. 10/27/09 Rental of Audio Visual Equipment 147.25 4 0.00 147.25 0.00 0.00 0.00 $ 147.25 9 110041 350 A.R. AIR CONDITIONING IN 08/04/10 HVAC Services 5,188.46 4 1,037.69 1,037.69 1,037.69 1,037.69 1,037.69 $ 5,188.45 10 120115 370 A-1 Steel Fence Co., Inc. See Note 3 BPO FY12 - Fencing Services 5,000.00 4 0.00 1,250.00 1,250.00 1,250.00 1,250.00 $ 5,000.00 11 120203 440 AA United Digital Printing See Note 3 Reproduction/Xerographics 15,000.00 4 0.00 1,500.00 1,500.00 1,500.00 1,500.00 $ 6,000.00 12 120114 370 AAA Backflow Device Testing, Inc. See Note 3 FY12 BPO Backflow Device Testing 1,000.00 4 0.00 250.00 250.00 250.00 250.00 $ 1,000.00 13 120198 440 AAA Flag & Banner See Note 3 Banner Manufacturing Services 5,000.00 4 0.00 500.00 500.00 500.00 500.00 $ 2,000.00 14 110536 260 Absolute Employment Solutions 05/25/11 Temporary Personnel Services 580.81 4 0.00 580.81 0.00 0.00 0.00 $ 580.81 15 120126 260 Absolute Employment Solutions See Note 3 Temporary Labor Services 50,000.00 4 0.00 12,500.00 12,500.00 12,500.00 12,500.00 $ 50,000.00 16 100209 760 ACADEMY ADDRESSING & MAI 09/03/09 Direct Mailing Services 1,000.00 4 200.00 200.00 200.00 200.00 200.00 $ 1,000.00 17 110009 760 ACADEMY ADDRESSING & MAI 08/11/10 Direct Mailing Services 1,000.00 4 200.00 200.00 200.00 200.00 200.00 $ 1,000.00 18 120005 740 Academy Addressing & Mailing, Inc. See Note 3 FY12 APO - Mailing Services 1,000.00 4 0.00 250.00 250.00 250.00 250.00 $ 1,000.00 19 120164 760 Academy Addressing & Mailing, Inc. See Note 3 Mailing/Addressing Services 1,000.00 4 0.00 250.00 250.00 250.00 250.00 $ 1,000.00 20 120181 380 Ace Stamp & Sign Co. See Note 3 APO FY12 - Stampers/Signs 1,000.00 4 0.00 250.00 250.00 250.00 250.00 $ 1,000.00 21 120127 260 Act 1 Personnel Services See Note 3 Temporary Labor Services 50,000.00 4 0.00 5,000.00 5,000.00 5,000.00 5,000.00 $ 20,000.00 22 100584 710 ADELPHIA 07/06/10 Internet Services - HW 522.50 4 0.00 522.50 0.00 0.00 0.00 $ 522.50 23 110122 350 ADELPHIA 09/02/10 Internet Services 423.62 4 0.00 423.62 0.00 0.00 0.00 $ 423.62 24 070746 720 ADORNO, YOSS, ALVARADO 02/17/10 Legal Services - HW 9,516.91 5 1,903.38 1,903.38 1,903.38 1,903.38 1,903.38 $ 9,516.90 25 080278 730 ADORNO, YOSS, ALVARADO 08/15/07 Legal Services 28,110.81 5 5,622.16 5,622.16 5,622.16 5,622.16 5,622.16 $ 28,110.80 26 110102 750 ADT SECURITY SERVICES 08/26/10 Security Alarm Services 613.55 4 0.00 13.55 0.00 0.00 600.00 $ 613.55 27 110153 370 ADT SECURITY SERVICES 09/08/10 Security Alarm Services 482.36 4 0.00 482.36 0.00 0.00 0.00 $ 482.36 28 110268 720 ADT SECURITY SERVICES 02/16/11 Security Alarm Services 266.26 4 0.00 266.26 0.00 0.00 0.00 $ 266.26 29 120170 720 ADT Security Systems See Note 3 APO FY12 - Security Alarm Services - HW 600.00 4 0.00 150.00 150.00 150.00 150.00 $ 600.00 30 110383 710 AECOM (WILSHIRE OFFICE - 12/14/10 Consultant L A Streetcar Services 44.12 5, 6 0.00 44.12 0.00 0.00 0.00 $ 44.12 31 110587 770 AH'BE LANDSCAPE ARCHITEC 05/26/11 Landscape Architectural Services 20,500.00 2, 5 4,100.00 4,100.00 4,100.00 4,100.00 4,100.00 $ 20,500.00 32 110215 350 Alchemy Communication See Note 3 Intranet/internet service 2,000.00 6 0.00 0.00 2,000.00 0.00 0.00 $ 2,000.00 33 110303 350 Alchemy Communication See Note 3 Internet connectivity service 1,000.00 6 0.00 0.00 1,000.00 0.00 0.00 $ 1,000.00 1 of 36 Total Category Cost Execution Outstanding Debt Funding PAYMENTS BY MONTH Line # (Contract / PO / Loan #) Center Payee Date Description or Obligation Source Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011 Total 34 110056 350 ALCHEMY COMMUNICATIONS 08/11/10 Data Disaster Recovery System Maint.