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Home My WebLink About13 Res SA-RDA 082 - ROPS 2021-2022MEETING DATE: SUBMITTED BY: REQUEST: Recommendation STAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY January 14, 2021 Veronica Tapia, Senior Management Analyst Adopt Resolution No. SA-RDA-082 adopting a Recognized Obligation Payment Schedule and Administrative Budgets for the fiscal period from July 1, 2021 through June 30, 2022, pursuant to Health and Safety Code Section 34177 and taking certain related actions. That the Successor Agency Board waive further reading and adopt Resolution No. SA- RDA-082 approving the Recognized Obligation Payment Schedule and Administrative Budgets for the fiscal period from July 1, 2021 through June 30, 2022, and taking certain related actions. Strategic Plan There is no direct correlation to the strategic plan. Executive Summary Approval of these items is required pursuant to dissolution law in to fund the approved enforceable obligations of the Successor Agency to the Palm Desert Redevelopment Agency in the 2021/2022 fiscal year. Background Analysis Pursuant to Health and Safety Code ("HSC") Section 34177, the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") annually, listing the anticipated payments for enforceable obligations to be made from July 1 through the following June 30. The Successor Agency must also prepare a proposed administrative budget for each six-month period, which must include 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 City of Palm Desert (the "City") or another entity. All ROPS and Administrative Budgets must be approved by the Riverside County Countywide Oversight Board (which has jurisdiction over the Successor Agency January 14, 2021 - Staff Report RECOGNIZED OBLIGATION PAYMENT SCHEDULES AND ADMIN BUDGET 2021/2022 Page2of3 beginning July 1, 2018). Each Oversight Board -approved ROPS and Administrative Budget must be submitted to the DOF for review. HSC Section 34177 also requires the Successor Agency to submit an Oversight Board -approved ROPS to the DOF and to the County Auditor -Controller no later than February 1, 2021. A copy of the Oversight Board - approved ROPS must be posted on the Successor Agency's website. The DOF may eliminate or modify any item on the ROPS before approving the ROPS. The DOF must make its determination regarding the enforceable obligations and the amount and funding source for each enforceable obligation listed on ROPS 21-22 no later than April 15, 2021. Within five business days of the DOF's determination, the Successor Agency may request to "meet and confer" with the DOF on disputed items. The meet and confer period may vary, but an untimely submission of ROPS 21-22 may result in a meet and confer period of less than 30 days. The County Auditor -Controller may object to the inclusion of any item on the ROPS that is not demonstrated to be an enforceable obligation and may object to the funding source proposed for any item. The County Auditor -Controller must provide notice of its objections to the DOF, the Successor Agency and the Oversight Board at least 60 days before disbursements from the Redevelopment Property Tax Trust Fund ("RPTTF") are required to be made. The County Auditor -Controller is required to make RPTTF disbursements to the Successor Agency pursuant to the DOF-approved ROPS for fiscal year 2021-22 on June 1, 2021 (to cover enforceable obligation payments from July 1, 2021 through December 31, 2021) and January 2, 2022 (to cover enforceable obligation payments from January 1, 2022 through June 30, 2022). Delinquent submission of the ROPS to the Oversight Board may result in severe penalties to the City of Palm Desert (as the responsible entity that created the Redevelopment Agency). Staff recommends that the Board of Directors of the Successor Agency adopt the resolution approving the ROPS and Administrative Budgets for fiscal year 2021-22 and taking certain related actions. Fiscal Analysis The preparation and submittal of ROPS and Administrative Budgets for fiscal year 2021- 2022 are for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from July 1, 2021 to June 30, 2022. The "administrative cost allowance" is the amount of administrative costs that may be paid by the Successor Agency from moneys received from the RPTTF. Subject to the Dissolution Act, the permitted administrative cost allowance is the greater of: (i) $250,000 per fiscal year, or (ii) up to 3 percent of the actual RPTTF moneys distributed to the G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\01 Palm Desert - SA staff report for ROPS and Admin Budgets 21-22 1-14-21.docx January 14, 2021 - Staff Report RECOGNIZED OBLIGATION PAYMENT SCHEDULES AND ADMIN BUDGET 2021/2022 Page 3 of 3 Successor Agency by the County Auditor -Controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the administrative cost allowance and repayments or certain loans owing to the City of Palm Desert (the "City Loans") during the preceding fiscal year; provided that it shall not exceed 50 percent of the RPTTF moneys distributed to the Successor Agency in the preceding fiscal year. LEGAL REVIEW DEPT. REVIEW N/A - RWG Robert Hargraeves City Attorney Randy Bynder Interim Executive Director: 09d7t.P /''. /'�002Pi Janet M. Moore Director of Finance Randy Bynder FINANCIAL REVIEW 09d7t.P /''. /'�002Pi Janet M. Moore Director of Finance ATTACHMENTS: Resolution No. SA-RDA-082 ROPS 2021-22 Administrative Budgets 2021-22 i pV 8A-RDA 5-0 ON f�I - - VERIFIED BY: II,k Original on file with C' Cle 's Office GS', H-a nik, acrOan, lvl +a-hd C , moil Nous': NW_ ASSISTANT CITY MANAGER Andy Jirestine Andy Firestine Assistant City Manager -illy klli W.\Staff Reports - Shared 2\Staff Reports 01-14-2021\4- City Clerk - 01-14-2021\13 ROPS 21-22\01 Palm Desert - SA staff report for ROPS and Admin Budgets 21- 22 1-14-21.docx RESOLUTION NO. SA-RDA-082 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND ADMINISTRATIVE BUDGETS FOR THE FISCAL PERIOD FROM JULY 1, 2021 THROUGH JUNE 30, 2022, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code ("HSC") Section 34177(o), the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") must prepare a Recognized Obligation Payment Schedule listing the anticipated payments for enforceable obligations to be made by the Successor Agency during the fiscal period from July 1, 2021 through June 30, 2022 ("ROPS 21-22") and submit ROPS 21-22 to the oversight board of the Successor Agency for approval. B. Pursuant to HSC Section 34179(j), commencing on and after July 1, 2018, the Riverside Countywide Oversight Board (the "Oversight Board") has jurisdiction over the Successor Agency. C. Pursuant to HSC 34177(I)(2)(B), at the same time that the Successor Agency submits ROPS 21-22 to the Oversight Board for approval, the Successor Agency must submit a copy of such ROPS 21-22 to the State Department of Finance (the "DOF"), the County administrative officer, and the County Auditor -Controller. D. Pursuant to HSC Section 34177(j), the Successor Agency must prepare a proposed administrative budget for each six-month fiscal period (commencing each January 1 and July 1) and submit each proposed administrative budget to the Oversight Board for approval. E. Each proposed administrative budget shall include all of the following: (1) estimated amounts for Successor Agency administrative costs for the upcoming six- month fiscal period; (2) proposed sources of payment for the costs identified in (1); and (3) proposals for arrangements for administrative and operations services provided by the City of Palm Desert or another entity. F. Pursuant to HSC Section 34177(I)(2)(C) and Section 34177(o)(1), the Successor Agency must: (i) submit the Oversight Board -approved ROPS 21-22 to the DOF, the Office of the State Controller, and the County Auditor -Controller no later than February 1, 2021, and (ii) post a copy of the Oversight Board -approved ROPS 21-22 on the Successor Agency's website. G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\02 Palm Desert SA - SA reso for ROPS and Admin Budgets 21-22 1-14-21 - Copy.docx Resolution No. SARDA-082 NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (THE "BOARD"), HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. ROPS 21-22, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. Each of Administrative Budget 21-22A (covering the period from July 1, 2021 through December 30, 2021) and Administrative Budget 21-22B (covering the period from January 1, 2022 through June 30, 2022) (together, "Administrative Budgets 21-22"), substantially in the form attached hereto as Exhibit B, is hereby approved. Section 4. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify ROPS 21-22 and/or the Administrative Budgets 21-22 as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. Section 5. Staff is hereby authorized and directed to submit a copy of ROPS 21-22 to the Oversight Board for approval and, at the same time, transmit a copy of ROPS 21-22 to the DOF, the County Auditor -Controller and the County administrative officer as designated by the County. Section 6. Staff is hereby authorized and directed to also submit the proposed Administrative Budgets to the Oversight Board for approval. Section 7. Staff is hereby authorized and directed to submit a copy of Oversight Board -approved ROPS 21-22 to the DOF, the Office of the State Controller, and the County Auditor -Controller. If the Oversight Board has not approved ROPS 21-22 by February 1, 2021, Staff is hereby authorized and directed to transmit ROPS 21-22 to the DOF, the Office of the State Controller, and the County Auditor -Controller by February 1, 2021, with a written notification regarding the status of the Oversight Board's review. Written notice and information regarding the action of the Oversight Board shall be provided to the DOF by electronic means and in a manner of DOF's choosing. Section 8. This Board hereby represents and warrants to the Oversight Board that it examined all of the items on the ROPS 21-22 and finds that each of them is necessary for the continued maintenance and preservation of property owned by the Successor Agency until disposition in accordance with the Dissolution Act, the continued administration of the ongoing enforceable obligations, or the expeditious wind -down of the affairs of the former Palm Desert Redevelopment Agency by the Successor Agency. Section 9. Staff is hereby authorized and directed to post a copy of the Oversight Board -approved ROPS 21-22 on the Successor Agency's Internet website (being a page on the Internet website of the City of Palm Desert). G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\02 Palm Desert SA - SA reso for ROPS and Admin Budgets 21-22 1-14-21 - Copy.docx Resolution No. SARDA-082 Section 10. The officers and the other Staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including but not limited to requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and making adjustments to ROPS 21-22 and/or Administrative Budgets 21-22 pursuant to the DOF's instructions, and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 14th day of January, 2021. AYES: NOES: ABSENT: ABSTAIN: Kathleen Kelly, Chair ATTEST: GRACE ROCHA, INTERIM SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\02 Palm Desert SA - SA reso for ROPS and Admin Budgets 21-22 1-14-21 - Copy.docx EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (July 1, 2021 — June 30, 2022) G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\02A Reso Ex. A.docx Palm Desert ROPS 2021-22 Annual Item # Obligation Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Total Outstanding Obligation 21/22A Total Requested 21/22B Funding Notes 9 Indian Springs Stipulated Agreement 32 Stipulated Judgement Case No. 51124 43 Agency Owned Properties 44 Additional Disclosures on TAB's 56 2003 Tax Allocation Bond Issue - $15,745,000 59 North Sphere Hotel land 60 North Sphere Property Acquisition City Loan for formation of Project Area No. 2- 61 1986 86 Stipulated Judgement Case No. 51124 119 Stipulated Judgement Case No. 51124 160 Stipulated Judgement Case No. 51124 177 North Sphere Property Acquisition 178 North Sphere Property Acquisition 179 North Sphere Property Acquisition 189 Project Area Administration 190 Costs Associated with Disposition of Assets 2017 NHA Tax Allocation Refunding Bond 192 Issue - $52,390,000 2017 NHB Tax Allocation Refunding Bond 193 Issue - $140,130,000 2017 HA Tax Allocation Refunding Bond Issue 194 $7,365,000 2017 HB Tax Allocation Refunding Bond Issue 195 $45,815,000 Litigation Litigation Property Maintenance Fees Bonds Issued On or Before 12/31/10 City/County Loan (Prior 06/28/11), Cash exchange City/County Loan (Prior 06/28/11), Cash exchange City/County Loan (Prior 06/28/11), Cash exchange Litigation Litigation Litigation City/County Loan (Prior 06/28/11), Cash exchange City/County Loan (Prior 06/28/11), Cash exchange City/County Loan (Prior 06/28/11), Cash exchange Admin Costs Property Dispositions Bonds Issued After 12/31/10 Bonds Issued After 12/31/10 Bonds Issued After 12/31/10 Bonds Issued After 12/31/10 2/27/2009 11/20/1991 7/1/2013 7/1/2013 3/12/2003 3/23/1995 3/13/1997 12/5/1986 11/20/1991 11/20/1991 11/20/1991 3/23/1995 8/16/1999 8/16/1999 11/25/1981 7/1/2013 1/23/2017 1/23/2017 1/23/2017 1/23/2017 2/27/2039 Indian Springs Mobilehome Pa Judgement related to ISMHP Duties required under said court order. Desert 11/25/2032 Various Rose, Etc. PDHA subsidy for 1,100 Afford Units Agency owned properties monthly carrying costs 6/30/2022 Utilities, Maint Services, HOA C prior to disposition. 6/30/2022 Willdan 8/1/2033 US Bank 7/15/2038 City of Palm Desert 7/15/2038 City of Palm Desert 7/15/2038 City of Palm Desert 7/15/2038 Various 7/15/2038 Various 7/15/2038 Various 7/15/2032 City of Palm Desert 7/15/2032 City of Palm Desert 7/15/2038 City of Palm Desert 7/19/2044 Various 6/30/2022 City of Palm Desert 10/1/2033 US Bank 10/1/2041 US Bank 10/1/2031 US Bank 10/1/2023 US Bank Additional disclosures that will be required to report changes in the allocation of tax increment and the payment on tax allocation bonds due to AB 26. These disclosures would not have been necessary without this legislative change. Semi -Annual Debt Service Payment Balance due Property Acquisition Loan for Property Acquisition Formation of PA/Prop Acquisition Duties required under said court order. Vineyards, Emerald Brook (Palm Desert 103) PDHA subsidy for 1,100 Afford Units Duties required under said court order. Falcon Crest Afford Housing Dev - Homeowners at lots 1 through 93, et al. PDHA Subsidy for 1,100 Affordable Units Duties required under said court order. PDHA subsidy for 1,100 Affordable Units Balance due Property Acquisition (Eligible upon receipt of FOC) Balance due Property Acquisition (Eligible upon receipt of FOC) Balance due Property Acquisition (Eligible upon receipt of FOC) Allowable Costs per Admin Plan -staff, utilities, professional services, etc. Remediation of Health and Safety Issues and costs related to sale of properties owned by former RDA Semi -Annual Debt Service Payment Semi -Annual Debt Service Payment Semi -Annual Debt Service Payment Semi -Annual Debt Service Payment 7,374,438 221,173,384 450,000 69,837 52,500 30,000 750 21,746,800 384,503 5,235,436 5,235,436 7,783 7,783 7,890,000 63,072,039 16,602,589 49,236,464 11,418 1,647,720 10,346 8,033,143 350,000 53,843,500 149,619,444 7,390,166 18,859,656 Total RPTTF Requested Amount from Other Funds Total RPTTF Amount from PPA Total RPTTF Distribution 69,837 139,674 97,500 150,000 750 1,500 384,503 769,006 5,235,436 7,783 11,418 11,418 1,647,720 1,647,720 10,346 10,346 390,023 391,422 781,445 25,000 35,000 60,000 2,596,500 2,587,500 5,184,000 6,433,319 6,630,581 13,063,900 342,384 339,509 681,893 3,182,544 3,183,131 6,365,675 20,390,063 13,719,733 34,109,796 (132,818) (132,818) 20,257,245 13,719,733 33,976,978 (133,947) (283,682) 20,257,245 13,585,786 33,693,296 Palm Desert ROPS 2021-22 Annual A ROPS 18-19 Cash Balances (07/01/18 - 06/30/19) C D E F Fund Sources Bond Proceeds Bond Proceeds Reserve Balance Other Funds Prior ROPS RPTTF and Reserve Balances Bonds issued on or Bonds issued on or retained for future Rent, Grants, Interest, before 12/31 /10 after 01 /01 /11 period(s) etc. G H RPTTF Non-Admin and Admin Comments Beginning Available Cash Balance (Actual 07/01/18) RPTTF 1 amount should exclude A" period distribution amount" Revenue/Income (Actual 06/30/19) RPTTF amount should tie to the 2 ROPS 18-19 total distribution from the County Auditor -Controller Expenditures for ROPS 18-19 Enforceable Obligations (Actual 3 06/30/19) Retention of Available Cash Balance (Actual 06/30/19) RPTTF amount retained should only include the amounts distributed as 4 reserve for future period(s) ROPS 18-19 RPTTF Prior Period Adjustment RPTTF amount should tie 5 to the Agency's ROPS 18-19 PPA form submitted to the CAC No entry required 1,218,433 457,433 761,000 1,923,097 3,71 1,063 3,865,525 1,635,817 283,682 Line G5 from Prior Yr Cash Balance 32,347,416 Includes PMP Sales, Interest, and RPTTF Dep Includes PMP Sales Proceeds to CAC, reduction to energy investment, permitted 32,213,469 amounts from other on 18/19 ROPS, ROPS *DDR/Other Restricted Cash: Energy Investment ($761,000) / ($51,953) /Reso 119/($1,136,539) distributed from balance in 19/20 distribution/($731,007) distributed from 283,682 balance in 20/21 133,947 Amount remaining matches PPA Ending Actual Available Cash Balance (06/30/19) C to F = (1 + 2 - 6 3-4),G= (1 +2-3-4-5) $ 132,818 $ EXHIBIT B SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGETS (July 1, 2021 — December 31, 2021); and (January 1, 2022 - June 30, 2022) G:\CityClrk\AgendaBin\CC\01-14-2021\13 ROPS 21-22 - PRINTED\03A Reso Ex. B.docx Exhibit "B" Successor Agency to the Palm Desert Redevelopment Agency July 1, 2021 through December 31, 2021 BASED ON ESTIMATED RPTTF DEPOSIT Administrative Cost Allowance ADMINISTRATIVE COSTS Auditing Service Bank Fees Consulting Services Legal Services Personnel Expenditures Total Administrative Costs A - Administrative Allowance, B - City General Fund Jul 1 - Dec 31, 2021 Estimated @ 3% 390,023 ROPS 21-22A Budget Source of Jul 1 - Dec 31, 2021 Payment 8,500 A 7,500 A 5,000 A 50,000 A 319,023 2 A, B 390,023 Includes salaries, training, travel, meetings, supplies, etc. 2City staff time reimbursement costs in excess of SARDA allowable administrative costs (as adjusted per Department of Finance) will be borne by the City's General Fund. 12/20/2020 8:59 PM Proposed Administrative Budgets A&B - June 30, 2022 1.14.20 Exhibit "B" Successor Agency to the Palm Desert Redevelopment Agency January 1 through June 30, 2022 BASED ON ESTIMATED RPTTF DEPOSIT Administrative Cost Allowance ADMINISTRATIVE COSTS Auditing Service Bank Fees Consulting Services Legal Services Personnel Expenditures Total Administrative Costs A - Administrative Allowance, B - City General Fund Jan -June, 2022 Estimated @ 3% 391,422 ROPS 21-22B Budget Source of Jan -June, 2022 Payment 5,000 A 15,000 A 5,000 A 50,000 A 316,422 2 A, B 391,422 Includes salaries, training, travel, meetings, supplies, etc. 2City staff time reimbursement costs in excess of SARDA allowable administrative costs (as adjusted per Department of Finance) will be borne by the City's General Fund. 12/20/2020 8:59 PM Proposed Administrative Budgets A&B - June 30, 2022 1.14.20