HomeMy WebLinkAboutRes 594 Amendment to Enforceable Obligation Payment Schedule (EOPS)PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION 594 AMENDING THE ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD
JANUARY 1, 2012 THROUGH JUNE 30, 2012
SUBMITTED BY: Janet M. Moore, Director of Housing
DATE: January 12, 2012
CONTENTS: Resolution No. 594
Enforceable Obligation Payment Schedule (EOPS)
Recommendation
By Minute Motion: waive further reading and adopt Resolution No.
594 , amending the Enforceable Obligation Payment Schedule
(EOPS) for the period January 1, 2012 through June 30, 2012.
Executive Summary
As a result of the recent California Supreme Court decision regarding AB 26 and AB 27,
redevelopment agencies are dissolved as of February 1, 2012. Until successor entities
are authorized, redevelopment agencies must continue to make obligated payments.
Except for payments on bonded indebtedness, redevelopment agencies may not make
any payments unless they are listed on the Enforceable Obligation Payment Schedule
("EOPS". With Resolution 588, the Agency adopted the original EOPS which included
payments to be made through December 31, 2011, however, since the Supreme Court
decision delayed the dissolution of agencies, the amended schedule is necessary to
continue to make obligated payments from January 1, 2012 until a permanent
Recognized Obligation Payment Schedule (ROPS) is approved by the successor entity,
the oversight board, the County and the State.
Background
AB 26 and AB 27, which were signed by the Govemor of Califomia on June, 29, 2011,
added Parts 1.8 and 1.85 to the Community Redevelopment Law.
In the case of California Redevelopment Association, et al. v. Matosantos, et al. (Case
No. S194861), the litigation challenging AB X1 26 ("AB 26) and AB X1 27 ("AB 27"). the
Supreme Court largely upheld AB 26, invalidated AB 27, and held that AB 26 may be
severed from AB 27 and enforced independently. The Supreme Court generally revised
the effective dates and deadlines for performance of obligations in Part 1.85 (the
dissolution provisions) arising before May 1, 2012 to take effect four months later. As a
Staff Report
Adopt Resolution 594 Amending the EOPS
January 26, 2012
Page 2of2
result of the Supreme Court's decision, on February 1, 2012, all redevelopment
agencies are dissolved and successor agencies are designated as successor entities to
the former redevelopment agencies.
Pursuant to Health and Safety Code Section 34169(a), until successor agencies are
authorized, redevelopment agencies must continue to make all scheduled payments for
enforceable obligations as defined in Health and Safety Code Section 34167(a).
Pursuant to Health and Safety Code Section 34167(h), redevelopment agencies shall
not make a payment unless it is listed in an adopted enforceable obligation payment
schedule ("EOPS"), other than payments required to meet obligations with respect to
bonded indebtedness.
The Agency previously adopted an EOPS. In accordance with Health and Safety Code
Section 34169(g), the original EOPS only lists payments obligated to be made, by
month, through December 2011. Since the Agency will not be dissolved until February
1, 2012, staff recommends that the Agency adopt the attached Resolution to amend the
EOPS to include payments coming due after December 2011. Subsequently, the City,
as successor agency, will consider adoption of the Agency's EOPS as the successor
agency's EOPS (with any appropriate modifications), and the successor agency will pay
enforceable obligations pursuant to the EOPS until such time as a recognized obligation
schedule becomes operative.
Fiscal Analysis
Amendment of the EOPS will authorize the Agency to pay its enforceable obligations
after December 31, 2011 and prior to dissolution of the Agency on February 1, 2012.
Submitted by: Approval:
M. Moore, Director of Housing
JMM:pl
Paul S. Gibson, Director of Finance
A/
din M. Wohlmuth, Executive Director
McCarth` , A
edevelopment
[%)/9O BY RDA `C
* Adopted ` 41:N6 rr Y i;
alit Ctbe
Enforceable Obligation Payment Schedule
provided at today's meeting and subject
to the City Manager making any minor
adjustments that may be necessary prior
to February 1.
(i RDA PAl'IY 1 FON 1'AM STAFF RFPORF FOPS AMI \I)FD I-2()-12 1M lXX'
RESOLUTION NO. 594
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING AMENDMENTS TO THE ENFORCEABLE OBLIGATION
PAYMENT SCHEDULE AND CERTAIN RELATED ACTIONS
RECITALS:
A. The Palm Desert Redevelopment Agency (the "Agency") is a
redevelopment agency in the City of Palm Desert (the "City"), created pursuant to the
Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the California Health and Safety Code) (the "Redevelopment Law").
B. The City Council of the City (the "City Council") adopted (i) Ordinance No.
80, approving and adopting the redevelopment plan for Project Area No. 1, and from
time to time, the City Council has amended such redevelopment plan, (ii) Ordinance No.
509, approving and adopting the redevelopment plan for Project Area No. 2, and from
time to time, the City Council has amended such redevelopment plan, (iii) Ordinance
No. 652, approving and adopting the redevelopment plan for Project Area No. 3, and
from time to time, the City Council has amended such redevelopment plan, and (iv)
Ordinance No. 724, approving and adopting the redevelopment plan for Project Area
No. 4, and from time to time, the City Council has amended such redevelopment plan.
C. AB X1 26 and AB X1 27 were signed by the Governor of California on
June 29, 2011, making certain changes to the Redevelopment Law, including adding
Part 1.8 (commencing with Section 34161) ("Part 1.8") and Part 1.85 (commencing with
Section 34170) ("Part 1.85") to Division 24 of the Califomia Health and Safety Code.
D. The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of Califomia (California Redevelopment
Association, et al. v. Matosantos, et al. (Case No. S194861)) alleging that AB X1 26 and
AB X1 27 are unconstitutional. On August 11, 2011, the Supreme Court issued a stay
order, which was subsequently modified on August 17, 2011. Pursuant to the modified
stay order, the Supreme Court granted a partial stay of AB X1 26 and AB X1 27.
E. On December 29, 2011, the Supreme Court issued its opinion in the
Matosantos case largely upholding AB X1 26, invalidating AB X1 27, and holding that
AB X1 26 may be severed from AB X1 27 and enforced independently.
F. The Supreme Court generally revised the effective dates and deadlines for
performance of obligations in Part 1.85 arising before May 1, 2012 to take effect four
months later. The Supreme Court did not revise the effective dates or deadline for
performance of obligations in Part 1.8.
G. As a result of the Supreme Court's decision, on February 1, 2012, all
redevelopment agencies are dissolved and successor agencies are designated as
successor entities to the former redevelopment agencies. Pursuant to Health and
Safety Code Section 34169, until successor agencies are authorized, redevelopment
81000-0163\1418070v 1 .doc G: adaTatty Leon`JMM'staff report •.RESOLU 17ONSTOPS Resolution.doc
RESOLUTION NO. 594
agencies must continue to make all scheduled payments for enforceable obligations as
defined in Health and Safety Code Section 34167(a). Pursuant to Health and Safety
Code Section 34167, redevelopment agencies shall not make a payment unless it is
listed in an adopted enforceable obligation payment schedule, other than payments
required to meet obligations with respect to bonded indebtedness.
H. The Agency adopted Resolution No. 588 on August 25, 2011, adopting an
Enforceable Obligation Payment Schedule. The Enforceable Obligation Payment
Schedule is attached hereto as Exhibit A and incorporated herein by reference (the
"Original EOPS"). In accordance with Health and Safety Code Section 34169, the
Original EOPS only lists payments obligated to be made, by month, through December
2011. Accordingly, the Agency desires to adopt this Resolution to amend the Original
EOPS to include payments obligated to be made after December 31, 2011.
I. The amendments to the Original EOPS are set forth on Exhibit B attached
to this Resolution and incorporated herein by reference (the "Amendments").
NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY
OF THE CITY OF PALM DESERT, CALIFORNIA AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2. The Agency hereby adopts the Amendments. The Original EOPS,
as amended by the Amendments, shall constitute the EOPS of the Agency.
Section 3. The Agency Secretary is hereby authorized and directed to post
this Resolution, including the Exhibits, on the City's Internet Web site.
Section 4. Prior to dissolution, the Agency may amend the EOPS from time to
time at any public meeting of the Agency. Any such further amendments shall be
posted to the City's Internet Web site.
Section 5. The Agency Secretary is hereby authorized and directed to transmit
a copy of this Resolution, including the Exhibits, by mail or electronic means to the
County Auditor -Controller, the State Controller, and the Califomia Department of
Finance. A notification providing the Internet Web site location of the posted copy of
this Resolution will suffice.
Section 6. The officers and staff of the Agency are herby authorized and
directed, jointly and severally, to do any and all things which they may deem necessary
or advisable to effectuate this Resolution, including providing documents associated
with the Amendments to the California Department of Finance and the State Controller,
and any such actions previously taken by such officers and staff are hereby ratified and
confirmed.
-2-
8I000-0I63\I4I80 0 1 .doc G: ada`.Patty Leon JMMstsffrepmt`'RESOLUTIONS‘EOPS Resolution.doc
RESOLUTION NO. 594
Section 7. The Agency hereby affirms the designation of the Assistant City
Manager for Redevelopment, as the Agency official to whom the California Department
of Finance may make requests for review in connection with the Amendments.
Section 8. The adoption of this Resolution is not intended to and shall not
constitute a wavier by the Agency of any rights the Agency may have to challenge the
legality of all or any portion of AB X1 26 through administrative or judicial proceedings.
Section 9. This Resolution has been reviewed with respect to applicability of
the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines
(California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the
"Guidelines"), and the Agency's environmental guidelines. The Agency has determined
that this Resolution is not a "project" for purposes of CEQA, as that term is defined by
Guidelines Section 15378, because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment. (Guidelines Section 15378(b) (5)).
PASSED, APPROVED AND ADOPTED this 26th day of January, 2012 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPEIGEL, CHAIRMAN
ATTEST:
RACHELLE D. KLASEN, SECRETARY
PALM DESERT REDEVELOPMENT AGENCY
-3-
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RESOLUTION NO. 594
EXHIBIT A
ORIGINAL EOPS (AS ADOPTED ON AUGUST 25, 2011)
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