HomeMy WebLinkAbout04/09/2012 �
POSTED AGENDA
ADJOURNED REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
MONDAY, APRIL 9, 2012 — 1:30 P.M.
ADMINISTRATIVE CONFERENCE ROOM- PALM DESERT C/VlC CENTER
73-510 FRED WARING DR1VE, PALM DESERT, CALIFORNIA 92260
This Oversight Board has been created pursuant to§34161 through 34190 of the Health and Safety Cotle for the sole purpose
of overseeing the actions of the Successor Agency to the Palm Desert Redevelopment Agency. In accordance with Health and
Safety Code§34179(h),all Oversight Board actions shall not be effective for three business days,pending a request for review
by the State Department of Finance( Department'). In the event that the Department requests a review of a given Oversight
�, ,
Board action,it shali have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight
Board for reconsideration,and such Oversight Board action shall not be effective until approved by the Department. In the event
that the Department returns the Oversight Board action to the Oversight Board for reconsideration, the Oversight Board shall
resubmit the modified action for Department approval,and the modified Oversight Board action shall not become effective untii
approved by the Department.
Reports and documents relating to each of the following items listed on the agenda, including
those received following posting/disfribution, are on file in the Office of the Secretary to the
Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert Cify Clerk and are
availabie for public inspectian during normal business hours, Monday - Friday, 8:00 a.m. -
5:00 p.m., 73510 Fred Waring Drive, Palm Desert, CA 92260, telephone (760) 346-0611.
Please contact the Office of the Secretary of the Successor Agency to the Palm Desert
Redevelopment Agency, 73510 Fred Waring Drive, Paim Desert, CA 92260, (760) 346-0611, for
assistance with access to any of the Agenda, Materials, or participation at the meeting.
I. CALL TO ORDER
II. ROLL CALL
I11. ORAL COMMUNICATIONS
A. Any person wishing to discuss any item not on the agenda may address the
Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency at
this point by giving his/her name and address for the record. Remarks shall be limited to
a maximum of three (3) minutes unless the Oversight Board authorizes additional time.
B. This is the time and place for any person who wishes to comment on agenda items. It
should be noted that at the Oversight Board of the Successor Agency to the Palm Desert
Redevelopment Agency's discretion,these comments may be deferred until such time on
the agenda as the item is discussed. Remarks shall be limited to a maximum of three (3)
minutes unless the Oversight Board authorizes additional time.
� M
POSTED AGENDA APRIL 9, 2012
ADJOURNED REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
IV. APPROVAL OF MINUTES
A. MINUTES of the March 14, 2012, Special Meeting of the Oversight Board of the
Successor Agency to the Palm Desert Redevelopment Agency.
Rec: Approve as presented.
Action:
V. NEW BUSINESS
A. ACTIONS/MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY.
Rec: Receive and file Minutes of the Successor Agency to the Palm Desert
Redevelopment Agency Meeting of March 8 and Preliminary of March 22,
2012.
Action:
B. REQUEST FOR APPROVAL OF THE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE SECOND SIX-MONTH PERIOD, JULY 1, 2012,
THROUGH DECEMBER 31, 2012, PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34177 (ROPS2).
Rec: Approve the Recognized Obligation Payment Schedule for the second
six-month period of July 1, 2012, through December 31, 2012 (ROPSZ).
Action:
C. RESOLUTION NO. SA-RDA 005 - A RESOLUTION OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY,AUTHORIZING
THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND
(LAIF) OF THE STATE OF CALIFORNIA, AND TAKING CERTAIN ACTIONS IN
CONNECTION THEREWITH.
Rec: Approve as presented.
Action:
2
POSTED AGENDA APRIL 9, 2012
ADJOURNED REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
D. PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED.
Rec: Receive and file.
Action:
E. CONTRACT NO. C27540A - WITH WHITE NELSON DIEHL EVANS LLP TO
PERFORM A SPECIAL AUDIT OF THE PALM DESERT REDEVELOPMENT
AGENCY AND PALM DESERT HOUSING AUTHORITY FOR THE PERIOD
ENDED JANUARY 31, 2012.
Rec: Approve as presented.
Action:
F. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM
ACT, GOVERNMENT C4DE SECTIONS 81000, ET SEQ.
Rec: Receive and file.
Action:
G. REQUEST FOR APPROVAL OF THE ADMINISTRATIVE BUDGETS FOR THE
PERIODS OF JANUARY 31, 2012, THROUGH JUNE 30, 2012; AND FOR
JULY 1, 2012, THROUGH DECEMBER 31, 2012.
Rec: Approve the Administrative Budgets as required under AB 1 X 26 for the
periods of January 1, 2012, through June 30, 2012; and July 1, 2012,
through December 31, 2012.
Action:
H. REQUEST FOR APPROVAL OF REPAYMENT SCHEDULE TO THE
PALM DESERT HOUSING AUTHORITY FOR THE OUTSTANDING LOAN FROM
THE LOW AND MODERATE INCOME HOUSING FUND FOR THE 2009-2010
SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND(SERAF)
PAYMENT.
Rec: Approve the repayment schedule to the Palm Desert Housing Authority for
the loan from the Low and Moderate Income Housing Fund for the 2009-
2010 SERAF Payment.
Action:
3
' .
POSTED AGENDA APRIL 9, 2012
ADJOURNED REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
VI. CONTINUED BUSINESS
A. REQUEST FOR APPROVAL OF THE UNCERTIFIED RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (ROPS) (Continued from the meeting of
March 14, 2012).
Rec: Approve the uncertified ROPS as presented.
Action:
VII. OLD BUSINESS
None
VIII. REPORTS AND REMARKS �
A. CHAIR
B. MEMBERS OF THE OVERSIGHT BOARD
IX. ADJOURNMENT
I hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing
agenda forthe Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency was
posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 3rd day of
April, 2012.
Rache e D. Klassen, cretary of the
Successor Agency to the Palm Desert
Redevelopment Agency
4
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
73510 Fred Waring Drive
Palm Desert, California 92260-2578
Tcicphonr. (760) 346-0611 Fax: (760) 340-0574
ORDER OF ADJOURNMENT
REGULAR MEETING OF THE
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
NOTICE IS HEREBY GIVEN that due to scheduling conflicts, the regular meeting
of the Oversight Board of the Successor Agency to the Palm Desert Redevelopment
Agency scheduled for 1 :30 p.m. on Monday, April 2, 2012, in the
Administrative Conference Room of the Palm Desert Civic Center, 73-510 Fred Waring
Drive, Palm Desert, California, will be adjourned to Monday, April 9, 2012, at
1:30 p.m. in the Administrative Conference Room of the Palm Desert Civic Center,
73-510 Fred Waring Drive, Palm Desert, California 92260. The Agenda for the
Adjourned Meeting will be posted separately/sent under separate cover.
R CH�LLE D. KLA N, SECRETA Y
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
MARCH 27, 2012
4 � � DRAFT
PRELIMINARY MINUTES
SPECIAL MEETING OF THE
�VERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
WEDNESDAY, MARCH 14, 2012 -2:00 P.M.
ADM/N/STRATIVE CONFERENCE ROOM- PALM DESERT C/V/C CENTER
73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA 92260
This Oversight Board has been created pursuant to§34161 through 34190 of the Health and Safety Code for the sole purpose
of overseeing the actions of the Successor Agency to the Palm Desert Redevelopment Agency. In accordance with Health and
Safety Code§34179(h),ail Oversight Board actions shall not be effective for three business days,pending a request for review
by the State Department of Finance("DepartmenY'), In the event that the Department requests a review of a given Oversight
Boartl action,it shall have 10 days from the date of its request to approve the Oversight Board action or return it to the Oversight
Board for reconsideration,and such Oversight Board action shail not be effective until approved by the Department. In the event
that the Department returns the Oversight Board action to the Oversight Board for reconsideration,the Oversight Board shall
resubmit the modified action for Department approval,and the motlified Oversight Boartl action shall not become effective until
approved by the Department.
BY OVERSIGHT BOARD(����T>
I. CALL TO ORDER ON �-�� ���,
The meeting was convened at 2:05 p.m. ��FIED BY —
priginal on file with City Clerk's Of�'ice .
IL ROLL CALL
Present: Absent:
Board Member Heather Buck Board Member Lisa Brandl
Board Member Bill Carver Board Member Cindy McDaniel
Board Member Patricia A. Larson
Board Member Robert A. Spiegel
Also Present:
John M. Wohlmuth, Executive Director of the Successor Agency-Palm Desert RDA
William L. Strausz, Richards, Watson & Gershon, Successor Agency Counsel
Justin McCarthy, Assistant City Manager
Paul S. Gibson, Finance Officer
Lauri Aylaian, Director of Community Development
Janet Moore, Director of Housing
Mark Greenwood, Director of Public Works
Veronica Tapia, Accountant
Dr. Edwin Deas, Vice President of Business Affairs, College of the Desert
Rachelle D. Klassen, Secretary, Successor Agency-Palm Desert RDA
III. ORAL COMMUNICATIONS
None
� DRAFT
PRELIMINARY MINUTES MARCH 14, 2012
SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
IV. APPROVAL OF MINUTES
None
V. NEW BUSINESS
A. INTRODUCTIONS.
Board Members and those present introduced themselves, as foliows:
• Heather Buck, Project Coordinator for the former Palm Desert
Redevelopment Agency.
• Bob Spiegel, Mayor, City of Palm Desert, and Chairman of the former
Palm Desert Redevelopment Agency.
• Patricia (Corky� Larson, representing the Coachella Valley Water District.
• Roy William(Bill)Carver, retired,appointed by Fourth District Riverside County
Supervisor John Benoit.
• John Wohlmuth, Executive Director of the Successor Agency to the
Palm Desert Redevelopment Agency.
• Bill Strausz, with the law firm of Richards, Watson & Gershon, Los Angeles,
Counsel to the former Palm Desert RedevelopmentAgency and Counsel to the
Successor Agency to the Palm Desert Redevelopment Agency.
• Rachelle Klassen, Palm Desert City Clerk and Secretary to the Successor
Agency to the Palm Desert Redevelopment Agency.
• Paul Gibson, Finance Director, City of Palm Desert and Successor Agency to
the Palm Desert Redevelopment Agency.
• Janet Moore, Director of Housing, City of Palm Desert.
• Veronica Tapia,Accountant,former Palm Desert Redevelopment Agency and
Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert
Housing Authority.
• Justin McCarthv, Assistant City Manager, City of Palm Desert and the former
Palm Desert Redevelopment Agency.
• Dr. Edwin Deas, Vice President of Business Affairs, College of the Desert,
potential appointee on behalf of the Chancellor of the California Community
Colleges.
• Lauri Aylaian, Director of Community Development, City of Palm Desert.
• Mark Greenwood, Director of Public Works, City of Palm Desert.
• Lori Carnev, Human Resources Manager, City of Palm Desert.
B. OATH OF OFFICE ADMINISTERED TO OVERSIGHT BOARD MEMBERS.
Ms. Klassen administered the Oath of Office to Members Buck, Carver, Larson,
and Spiegel; said Oaths are now on file in the Office of the Palm Desert
City Clerk/Secretary to the SuccessorAgency to the Palm Desert Redevelopment
Agency.
2
PRELIMINARY MINUTES �R��T MARCH 14, 2012
SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
C. OVERSIGHT BOARD MEETING SCHEDULE.
o Suggested dates for Regular Meetings:
- 15t Monday of the Month - P.M.
- 1St Wednesday of the Month - A.M. or P.M.
- 3�d Tuesday of the Month - A.M.
Following discussion amongst members, the first Monday of the month at
1:30 p.m. was identified as the best choice for scheduling regular meetings of the
Oversight Board of the Successor Agency to the Palm Desert Redevelopment
Agency.
Member Carver moved to waive further reading and adopt Resolution No. OB-001,
establishing the time, day, and place of regular meetings of the Oversight Board to be the first
Monday of each month at 1:30 p.m. in the Administrative Conference Room of the Palm Desert
Civic Center. Motion was seconded by Member Larson and carried by 4-0 vote, with Brandl and
McDaniel ABSENT.
D. ELECTION OF OFFICERS.
1) Elect Chair for the Oversight Board of the Successor Agency to the
Palm Desert Redevelopment Agency.
Member Larson nominated Member Spiegel as Chair of the Oversight Board of the
Successor Agency to the Palm Desert Redevelopment Agency. Nomination was seconded by
Member Buck and carried by 4-0 vote, with Brandl and McDaniel ABSENT.
2) Authorize the Secretary of the Successor Agency to the Palm Desert
Redevelopment Agency to notify the Department of Finance of the elections
and Members of the Oversight Board.
Member Carver moved to authorize Secretary of the Successor Agency to the
Palm Desert Redevelopment Agency Rachelle Klassen to notify the Department of Finance of
the elections and Members of the Oversight Board. Motion was seconded by Member Buck and
carried by 4-0 vote, with Brandl and McDaniel ABSENT.
3) Designate the Executive Director of the Successor Agency to the Palm Desert
Redevelopment Agency as the contact person to the Department of Finance.
Member Buck moved to appoint John Wohlmuth as Executive Director to the Oversight
Board of the Successor Agency and designate him as the contact person for the Department of
Finance. Motion was seconded by Member Spiegel and carried by 4-0 vote, with Brandl and
McDaniel ABSENT.
3
. DR A�T
PRELIMINARY MINUTES MARCH 14, 2012
SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
E. REPORT REGARDING ROLE OF THE OVERSIGHT BOARD.
Members reviewed the copy of AB 26 provided in their agenda packets and
discussed role of the Oversight Board;staff members offered to answer questions.
It was noted that clean-up legislation was currently being proposed in Sacramento
having to do with ABX1 26 in order to clear up some of the ambiguity and
uncertainty in the law. Oversight Board Members inquired about the process for
disposing of Successor Agency assets. Further, they asked whether or not there
was any provision for legal counsel assigned specifically to the Oversight Board
outside of legal counsel the Successor Agency has for itself, which poses a
representational conflict; and if legal counsel was secured, who paid for it.
With Oversight Board concurrence, the report was received and filed.
F. ACTIONS/MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY.
With Oversight Board concurrence, Minutes of the Successor Agency to the Palm Desert
Redevelopment Agency Meetings of February 9 and February 23, 2012, were received
and filed.
G. REQUEST FOR APPROVAL OF THE UNCERTIFIED RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (ROPS).
Staff noted that AB 26 clearly required that a Successor Agency had to identify
obligations and list them on two reports prior to the date of dissolution or date the
Governor signed the legislation: 1) Enforceable Obligation Payment Schedule
(EOPS) approved by the Redevelopment Agency before dissolution;
2) Recognized Obligation Payment Schedule (ROPS) first approved by the
Successor Agency and then the Oversight Board. The first ROPS would be
reviewed by the Oversight Board, Department of Finance (DOF), and
Riverside County; with the County required to do an audit of the City's activities
listed in the subject Schedule. DOF has already provided feedback following
Successor Agency's approval of the ROPS, requesting review of agreements and
related documentation for certain line items. There is some confusion regarding
application of the law, after the Supreme Court decision on December 29, 2011,
and subsequent delay of certain deadlines in the law; whereas, submission of the
Certified ROPS to DOF must occur by April 15. However, Palm Desert was
informed that Riverside County cannot physically perform the required certification
by that date. Therefore, the Department of Finance requirement and the
legislation have been extended so that the County has until July 1 to perform
certification. Additionally, DOF has clarified that it is acceptable to take an
uncertified ROPS to the Oversight Board for review and approval prior to County
certification. It was pointed out that there are four Project Areas listed in the
Schedule, with bonded indebtedness being listed as the first section in each
4
� �����
' PRELIMINARY MINUTES MARCH 14, 2012
SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
ProjectArea,followed byobligations—existing contracts, administrative costs, etc.
Certain costs of the Oversight Board were not included, but it does include costs
of the meetings being held, such as today's. Staff offered to answer questions.
Oversight Board Members went through pages of the ROPS and asked questions
about obligations for the Project Areas, how they would be paid, and how Pass-
through amounts would be handled. For the next meeting, staff agreed to provide
a Project Area Map of the Redevelopment Agency as it existed prior to dissolution
to better illustrate where the obligations came from. Further, staff noted that the
ROPS defined money to be paid; it did not identify money to be received or
transactions related to land, and those matters will be separate considerations for
the Oversight Board. Board Members requested a line-by-line review of the ROPS
at the next meeting.
Member Larson moved to continue approval of the Uncertified Recognized Obligation
Payment Schedule (ROPS)to the next meeting. Motion was seconded by Member Carver and
carried by 4-0 vote, with Brandl and McDaniel ABSENT.
VI. CONTINUED BUSINESS
None
VII. OLD BUSINESS
None
VIII. REPORTS AND REMARKS
A. CHAIR
None
B. MEMBERS OF THE OVERSIGHT BOARD
1. Member Carver commented he was glad to see that AB 26 provided the
Oversight Board with personal immunity from suit with regard to any actions
they take as Members of this Board.
2. Ms. Klassen noted that along with the packet that she provided to Board
Members where the Oath of Office was the first page, it also contained a letter,
requesting an Assuming Office Statement of Economic Interests - Form 700
from each appointed, voting Board Member. She noted that Members of the
Board have full economic disclosure requirements, and she was available to
answer questions as needed.
5
PRELIMINARY MINUTES � �� MARCH 14, 2012
SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
IX. ADJOURNMENT
Upon a motion by Member Larson, second by Member Carver, and 4-0 vote of the
Oversight Board, Chair Spiegel adjourned the meeting at 2:55 p.m.
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO THE PALM DESERT REDEVELOPMENT AGENCY
6
A P P R 0 V E D
MINUTES
REGULAR MEETING OF THE
� BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY
TO THE PALM DESERT REDEVELOPMENT AGENCY
THURSDAY, MARCH 8, 2012
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chair Spiegel convened the meeting at 3:02 p.m.
� � � BY OVERSIGHT BOARD(�����^�
II. ROLL CALL ON � �_�r�'�
Present: yERIFIED BY ���t�
Director Jean M. Benson
Director Cindy Finerty Original on file with City Clerks Of�ice
Director Jan C. Harnik
Vice Chair William R. Kroonen
Chair Robert A. Spiegel
Also Present:
John M. Wohlmuth, Executive Director
David J. Erwin, City Attorney
Justin McCarthy, Assistant City Manager
Rachelle D. Klassen, Secretary
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Paul S. Gibson, Director of Finance/City Treasurer
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Frankie Riddle, Director of Special Programs
Stephen Y. Aryan, Risk Manager
Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
William Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Grace L. Mendoza, Deputy City Clerk
I11. ADJOURN TO CLOSED SESSION
Request for Closed Session:
None
A P P R 0 V E D
MINUTES MARCH 8, 2012
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING
On a motion by Kroonen, second by Finerty, and 5-0 vote of the Successor Agency Board
of Directors, Chair Spiegel adjourned the meeting to Closed Session of the City Council at
3:03 p.m. He reconvened the meeting at 4:00 p.m.
IV. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
V. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
VI. CONSENT CALENDAR
A. MINUTES of the Regular Meeting of the Board of Directors of the Successor
Agency to the Palm Desert Redevelopment Agency Meeting of February 23, 2012.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY -
Warrant Nos. 188RDA, 192SA, and 196SA.
Rec: Approve as presented.
C. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES for
the Meetings of December 19, 2011, and February 21, 2012.
Rec: Receive and file.
Upon a motion by Finerty, second by Kroonen, and a 5-0 vote of the Successor Agency
Board, the Consent Calendar was approved as presented.
VII. CONSENT ITEMS HELD OVER
None
2
A P P R 0 V E D
MINUTES MARCH 8, 2012
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING
VIII. RESOLUTIONS
A. RESOLUTION NO. SA-RDA 005 - A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY, AUTHORIZING THE INVESTMENT OF MONIES
IN THE LOCAL AGENCY INVESTMENT FUND (LAIF) OF THE STATE OF
CALIFORNIA, AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH.
Director Finerty moved to waive further reading and adopt Resolution No. SA-RDA 005.
Motion was seconded by Kroonen and carried by a 5-0 vote.
IX. NEW BUSINESS
A. REQUEST FOR ADOPTION OF THE PALM DESERT STATEMENT OF
INVESTMENT POLICY AS AMENDED (JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL, PALM DESERT HOUSING AUTHORITY,AND
PALM DESERT FINANCING AUTHORITY).
Deputy City Treasurer Thomas Jeffrey stated staff was requesting two
amendments, the first substitutes the "RDA-Successor Agency, Palm Desert" for
the former "Palm Desert Redevelopment Agency." The second request is to
increase the concentration limit for local agency investment pools from 30% to
50%. Due to the elimination of the Redevelopment Agency, the arithmetic
changed on how it's calculated.
Councilmember/Director/Member/Commissioner Finerty stated it was wonderful
that the City is allowed to earn more than 50% than what it's currently earning in
interest income.
Councilmember/Director/Member/Commissioner Finerty moved to, by Minute Motion,
concur with the recommendation of the Audit, Investment & Finance Committee and adopt the
Palm Desert Statement of Investment Policy, as amended. Motion was seconded by Kroonen
and carried by a 5-0 vote.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
None
3
A P P R 0 V E D
MINUTES MARCH 8, 2012
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING
XII. PUBLIC HEARINGS
None
XIII. REPORTS, REMARKS,SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
1. Oversight Board Meetinq — Mr. Wohlmuth stated the first Oversight Board
of the Successor Agency to the Palm Desert Redevelopment Agency
Meeting had been scheduled for March 14 at 2:00 p.m. in the Administrative
Conference Room. He said five of the seven members were scheduled to
attend, with the Office of Education or Community College District yet to
advise of their appointments to Palm Desert's Oversight Board.
B. SUCCESSOR AGENCY COUNSEL
None
C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY
None
XIV. ADJOURNMENT
Upon a motion by Kroonen, second by Finerty, and 5-0 vote of the Successor Agency
Board of Directors, Chair Spiegel adjourned the meeting at 5:40 p.m.
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
4
DRAFT
PRELIMINARY MINUTES
REGULAR MEETING OF THE
BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY
TO THE PALM DESERT REDEVELOPMENT AGENCY
THURSDAY, MARCH 22, 2012
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chair Spiegel convened the meeting at 3:00 p.m.
II. ROLL CALL �� �-�� �1} �_r; ' ;��:.; ; �si� ��::,,� (�� F�(3S�nIT)
��
Present: ��`�"�'�� �
---_..
Director Jean M. Benson yEFtIFIED BY
Director Cindy Finerty " �
Director Jan C. Harnik Original on file with City Clerks Office .
Vice Chair William R. Kroonen
Chair Robert A. Spiegel
Also Present:
John M. Wohlmuth, Executive Director
David J. Erwin, City Attorney
Justin McCarthy, Assistant City Manager
Rachelle D. Klassen, Secretary
Bo Chen, City Engineer
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Paul S. Gibson, Director of Finance/City Treasurer
Janet M. Moore, Director of Housing
Frankie Riddle, Director of Special Programs
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
Stephen Y. Aryan, Risk Manager
Grace L. Mendoza, Deputy City Clerk
II1. ADJOURN TO CLOSED SESSION
Request for Closed Session:
None
PRELIMINARY MINUTES DRAFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 22, 2012
Upon a motion by Kroonen, second by Benson, and 4-0 vote of the Successor Agency
Board of Directors, with Finerty ABSENT, Chair Spiegel adjourned the meeting to Closed
Session of the City Council at 3:02 p.m. He reconvened the meeting at 4:00 p.m.
IV. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
V. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None
VI. CONSENT CALENDAR
A. MINUTES of the March 8, 2012, Regular Meeting of the Board of Directors of the
Successor Agency to the Palm Desert Redevelopment Agency.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY -
Warrant Nos. 199RDA, 200RDA, 205RDA, 202SA, and 208SA.
Rec: Approve as presented.
*C. REQUEST FOR APPROVAL of Contract with White Nelson Diehl Evans LLP to
PerForm a Special Audit of the Palm Desert Redevelopment Agency and
Palm Desert Housing Authority for the Period Ended January 31, 2012 (Contract
No. C27540A)(Joint Consideration with the Palm Desert Housing Authority).
Rec: By Minute Motion, approve subject contract with White Nelson Diehl Evans
LLP, Irvine, California, to perform a Special Audit of the Palm Desert
Redevelopment Agency and Palm Desert Housing Authority for the period
ended January 31, 2012.
Upon a motion by Finerty, second by Kroonen, and 5-0 vote of the Successor Agency
Board of Directors, the Consent Calendar was approved as presented.
* Responding to question relating to Consent Calendar Item C, Mr. Wohlmuth stated
White Nelson Diehl Evans has been the City's auditorforthe pastfouryears. This
particular audit is on the former Redevelopment Agency as a requirement placed
2
PRELIMINARY MINUTES DF�AFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 22, 2012
by the County and the State Department of Finance. The City has worked with
this firm because it is familiar with AB 1 X 26, which has many interpretations. He
said this was a specialized field, and he would feel uncomfortable conducting a
Request for Proposal (RFP) for these services; therefore, staff recommended
using this firm for this audit.
Mr. Gibson added staff will leave it at the direction of the President of the
Corporation to execute the contract, because the Los Angeles County indicated
they had discussions with the State, and the State has stated it may not be
required. He said the Executive Director will decide on whether to go forward with
the audit depending on what the States decides.
Mayor Spiegel noted the question came up as to why the City was using a vendor
from out of town.
Mr.Gibson responded this was a very specialized audit relating to Redevelopment.
VII. CONSENT ITEMS HELD OVER
None
VIII. RESOLUTIONS
None
IX. NEW BUSINESS
A. REQUEST FOR ADOPTION OF A SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY CONFLICT OF INTEREST CODE
PURSUANT TO THE POLITICAL REFORM ACT, GOVERNMENT CODE
SECTIONS 81000, ET SEQ. (JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL).
Ms. Klassen stated that pursuant to the Political Reform Act, all public agencies
in the State of California must adhere to a Conflict of Interest Code. She worked
closely with legal counsel to draft the proposed Conflict of Interest Code, which
was modeled after the Fair Political Practices Commission Model Code and
adopted it here forthe SuccessorAgency. Since the RedevelopmentAgencywas
dissolved, the City has to implement processes as if it was restarting, and as the
City Council sits as the Board for the Successor Agency, it is also the Code
reviewing body for the City's Conflict of Interest Code; therefore, it's a joint
consideration item.
3
PRELIMINARY MINUTES DRAFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 22, 2012
Mayor Pro TemNice Chair Kroonen moved to: 1) Waive further reading and adopt
Resolution No. SA-RDA 006, adopting a Conflict of Interest Code Containing Designated
Positions and Disclosure Categories for the Successor Agency to the Palm Desert
Redevelopment Agency; 2) As Code Reviewing Body, the City Council, by Minute Motion,
approve the Successor Agency to the Palm Desert Redevelopment Agency Conflict of Interest
Code and all associated actions to be taken in connection therewith. Motion was seconded by
Finerty and carried by a 5-0 vote.
B. REQUEST FOR ADOPTION OF THE RECOGNIZED OBLIGATION PAYMENT
SCHEDULE (ROPS) FOR THE SECOND SIX-MONTH PERIOD, JULY 1, 2012,
THROUGH DECEMBER 31, 2012, PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34177.
Ms. Moore stated this was actually the second payment of the Recognized
Obligation Payment Schedule tha# the Board will be reviewing and approving as
part of the dissolution of Redevelopment. She noted the Board already approved
the first payment at the February 23, 2012, meeting.
Director Finerty moved to: 1) Waive further reading and adopt Resolution No. SA-RDA
007, approving the Recognized Obligation Payment Schedule for the second six-month period
of July 1, 2012, through December 31, 2012 ("ROPS2"); 2) By Minute Motion, authorize staff to
forward the second Recognized Obligation Payment Schedule to the Oversight Board for
approval. Motion was seconded Kroonen and carried by a 5-0 vote.
C. REQUEST FOR APPROVAL OF THE ADMINISTRATIVE BUDGETS FOR THE
PERIODS OF JANUARY 31, 2012, THROUGH JUNE 30, 2012; AND FOR
JULY 1, 2012, THROUGH DECEMBER 31, 2012.
Vice Chair Kroonen moved to, by Minute Motion: 1)Approve the Administrative Budgets
as required under AB 1 X 26 for the periods of January 1, 2012, through June 30, 2012; and for
July 1, 2012, through December 31, 2012; 2) authorize staff to forward said Administrative
Budgets to the Oversight Board for approval. Motion was seconded by Finerty and carried by
a 5-0 vote.
4
PRELIMINARY MINUTES DRAFT
� SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 22, 2012
D. REQUEST FOR APPROVAL OF THE REPAYMENT SCHEDULE TO THE
PALM DESERT HOUSING AUTHORITY FORTHE OUTSTANDING LOAN FROM
THE LOW AND MODERATE INCOME HOUSING FUND FOR THE 2009-2010
SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND(SERAF)
PAYMENT.
Ms. Moore stated that in 2009/2010, the SERAF payment that was required to be
paid by the Redevelopment Agency was over$25 miilion. In order to make that
payment,they provided an opportunity to defer a deposit to the Low and Moderate
Income Housing Fund and allowed that money to be used for the payment to the
State, which is what was done. In order for it to be repaid, one of the conditions
of AB 26 was to provide a repayment schedule. In the past, staff anticipated that
as monies became available, it would be able to repay that loan, and now that a
repayment schedule is required, staff derived one of four-equal payments.
Director Finerty moved to, by Minute Motion,approve the repayment schedule to the Palm
Desert Housing Authority for the loan from the Low and Moderate Income Housing Fund for the
2009-2010 SERAF Payment. Motion was seconded by Kroonen and carried by a 5-0 vote.
X. CONTINUED BUSINESS
None
XI. OLD BUSINESS
None
XII. PUBLIC HEARINGS
None
XII1. REPORTS, REMARKS,SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
None
B. SUCCESSOR AGENCY COUNSEL
None
5
PRELIMINARY MINUTES DRAFT
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY MEETING MARCH 22, 2012
C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY
None
XIV. ADJOURNMENT
On a motion by Kroonen, second by Finerty, and 5-0 vote of the SuccessorAgency Board
of Directors, Chair Spiegel adjourned the meeting at 5:24 p.m.
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
6
, ..._ L��C�.,. B��^r;,��tSIGHT' IIOAItD
. pN—.- _ _ �-o r�-____-�_._
VERIFIEll BY.—�
Origuial on file with City Clerks Of�ic�
SUCCESSOR AGENCY TO THE «� A���
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. SA-RDA ��� ADOPTING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE
SECOND SIX-MONTH PERIOD PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34177 FOR THE PERIOD OF JULY 1,
2012 THROUGH DECEMBER 31, 2012
SUBMITTED BY: Janet M. Moare, Director of Housing
DATE: March 22, 2012
CONTENTS: Resolution SA-RDA ao�
Recognized Obligation Payment Schedule (7/9/92- 12/31/12)
Recommendation
By Minute Motion that the Successor Agency Board,
1. Adopt Resolution SA-RDA oo� approving the Recognized Obligation
Payment Schedule for the second six-month period of July 1, 2012
through December 31, 2012 ("ROPS2"}; and
2. Authorize staff to forward the second Recognized Obligation Payment
Schedule to the Oversight Board for approval.
Executive Summary
Pursuant to Health and Safety Code Section 34177, in order to make payments on
enforceable obligations, the Successor Agency is required to adopt a Recognized
Obligation Payment Schedule for each six month period. The Recognized Obligation
Payment Schedule must be approved by the Oversight Board, submitted to the County
Auditor, the State Controller, as well as the State Department of Finance. This is the
second Recagnized Obligation Payment Schedule ("ROPS2") to be presented to the
Successor Agency for approval.
Backqround �
Health and Safety Code Section 34177(j-I), as modified by the California Supreme
Court, provides that the Successor Agency must approve a Recognized Obligation
Payment Schedule for each sixth month period that lists the enforceable obligations of
the former Redevelopment Agency.
Staff Report
Approving the Second Recognized Obligation Payment Schedule
March 22, 2012
Page 2 of 2
Attached is the Recognized Obligation Payment Schedule for the second six-month
period of July 1, 2012 through December 31, 2012 ("ROPS2") for approval by
Successor Agency and the Oversight Board. The first ROPS was approved by the
Successor Agency on February 23, 2012 and was reviewed by the Oversight Board an
March 14, 2012 at its first meeting. After approval by the Oversight Board, a copy of the
approved ROPS2 rnust be submitted to the county auditor-controller, the State
Contraller and the State Department of Finance ("DOF"), and be posted on the
Successor Agency to the Palm Desert Redevelopment Agency's web site.
Staff recommends that the Successor Agency Board approve the Recognized
Obligation Payment Schedule for the second six-month period through December 31,
2012 and forward to the Oversight Board for approval.
Fiscal Analvsis
The Recognized Obligatian Payment Schedule is in furtherance of allowing the
Successor Agency ta pay enforceable abligations of the former redevelopment agency.
Submitted by: Department Head:
J et . Moore, Director of Housing st McCarthy, Assist ity Manager
Ap o I:
Paul S. Gibson, Director of Finance
r � _,
\_ ' b����� 1, `
J M. Wohlmuth, Executive Director , f�1 `�
� ��1�R �-O
s��.`������..�?►?..�.�G/ 2
�����:�ri�� ��������
,..EJ. , _
�?rfgina! +7n f�if, ����ti� C+;�� _Ir... :; �>�fic-�
G��rda\Veronica Tapia\Word Files\StafiReportsVtOP52-3-22-12docx
�; RESOLUTION NO. SA - RDA oo�
,��:,
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING THE SECOND RECOGNIZED OBLIGATION
PAYMENT SCH��ULE PURSUANT TO HEALTH AND SAFETY C�ODE
SECTION 34177 AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH
RECITALS:
A. AB X1 26 and AB X1 27 were signed by the Governor of California on
June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety
Code) (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").
B. The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of California (California Redevelopment
Association, et al. v. Matosantos, et al. (Case No. S194861)) alleging that AB X1 26 and
AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its
�i� opinion in the Matosantos case largely upholding AB X1 26, invalidating AB X1 27, and
�y holding that AB X1 26 may be severed from AB X1 27 and enforced independently.
C. 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.
D. As a result of the Supreme Court's decision, the Palm Desert
Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the
City of Palm Desert (the "City"), created pursuant to the Redevelopment Law, was
dissolved pursuant to Part 1.85 on February 1, 2012.
E. By its Resolution No. 2011-76, adopted on August 25, 2011, the City
Council of the City made an election to serve as the successor agency for the
Redevelopment Agency under Part 1.85 (the `Successor Agency").
F. By its Resolution No. 001, adopted on February 9, 2012, the City Council,
acting as the governing board for the Successor Agency, established rules and
regulations applicable to the governance and operation of the Successor Agency, and
pursuant to such resolution provided that the Successor Agency will be governed by a
Board of Directors (the "Board") consisting of the members of the City Councit of the
City.
;;_t
G:1rdalVeronica Tapia\Word FileslStaff Reportsl5uccessor agency resolution approving ROPS2 3-2212.docx I
RESOLUTION NO. SA-RDA oo�
G. Heaith and Safety Code Section 34177(i), as modified by the California ��
Supreme Court, provides that the Successor Agency must prepare a Recognized �
Obligation Payment Schedule for the enforceable obligations of the former
Redevelopment Agency, in accordance with the requirements of paragraph (I). The
Recognized Obligation Payment Schedule must be submitted to and approved by the ,
oversight board. Finally, after approval by the oversight board, a copy of the approved
Recognized Obligation Payment Schedule must be submitted to the county auditor-
controller, the State Controller and the State Department of Finance ("DOF"), and be
posted on the Successor Agency's web site. The second Recognized Obligation
Payment Schedule submitfied to the State Controller and the DOF will be for payments
for the period of July 1, 2012 to December 31, 2012, inclusive.
H. Accordingly, the Board desires to adopt this Resolution approving the
second Recognized Obligation Payment Schedule in accordance with Paragraph G.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, 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. This Resolution is adopted pursuant to Health and Safety Code �t,��
Section 34177. �?"�
Section 3. The Board hereby approves the second Recognized Obligation
Payment Schedule substantially in the form attached as Exhibit A to this Resolution and
incorporated herein by reference (the "ROPS2"). The Executive Director of the
Successor Agency, in consultation with the Successor Agency's legal counsel, may
modify the ROPS as the Executive Director or the Successor Agency's legal counsel
deems necessary or advisable.
Section 4. The Board hereby designates Paul Gibson as the official to whom
the DOF inay make requests for review in cannection with the ROPS2 and who shall
provide the DOF with the telephone number and e-mail contact information for the
purpose of communicating with the DOF.
-2-
G:Wa\Veronica Tapia\Word FileslStatFReports\Successar agency resolution approving ROP52 3-22d2.docx
RESOLUTION NO. SA-RDA oo�
`�` Section 5. The officers and staff of the Successor Agency are hereby
��y. authorized and directed, jointly and severally, to do any and all things which they may .
deem necessary or advisable to effectuate this Resolution, including submitting the
certified Recognized Obligation Payment Schedule to the oversight board for approval,
and any such actions previously taken by such officers are hereby ratified and
confirmed.
PASSED, APPROVED AND ADOPTED this 22nd day of March, 2012.
AYES: BErtsoN, FINERTY, HARNIR, R1t00NEN, and SPIEGEL
NOES: rrorr�
ABSENT: Nor�
ABSTAIN: rrorr�
� C.�--' �
Robert A.Spiegel, C air
��"' ATTEST:
�r
.�;
R chelle D. Klassen, Secretary
SUCCESSbR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
�;'
,,��::;; �
�,;;
�.:
-3-
G:Uda\Veronice Tapia\Word Filesl5taff Reports\Successor agency resolution epproving ROPS2 3•22-12.docx
RESOL�TION NO. SA-RDA 007
EXHIBIT A �
;���
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
I
:;�c.
a F,'
%:;tY
Exhibit A
G Ude\Veronica Tapia\Word Filas\Staff Reports�Successor agency resolution approving ROPS2 3-22-12.docx
C�TY pF PALM DESERT
OFFICE OF THE CITY TREASURER
STAFF REPORT
R
EQUEST: RESOLUTiON SA-RDAoos.- A RESOL ER�A�H�RIZING THE
SUCCESSOR AGENCY -- PALM DES
INVESTMENT OF MONIES IN THE L�CAL AGENCY
INVESTMENT FUND (JOINT E RDAI SUCCEi SOR`AGENCYALM
DESERT CITY COUNCIL, TH
PALM DESERT, AND THE HOUSING AUTHORITY).
SUBMITTED BY: Paul S. Gibson, C.C.M.T., City Treasurer gy p��I(;HT BOA.RD
ON a �—��
DATE:
March 8, 2012 '
VERIFI�D BY �� -
CONTENTS: Resolution No. sA-xnAooS QrA�nai on filc with City Clerks Offic�
Ac�s�')
Recommendation
By Resvlution: Waive fu�ther reading, and adopt Resolution No. sA-xnA oos
Bac�d
At its February 28, 2412 meeting, the Audit�unanimously tovrecommend hat the
reviewed the proposed reso►ution, and vote
City Council adopt it.
In compliance with the provisions of ABx1 26 (the "Dissolution Act"), State Trea LAIF
Zg, 2012, announced that any redevelopment agency
Lockyer, on January 31, 2012 would have their funds frozen. Accordingly, on
accounts left open on January
January 27, 2012, the Palm Desert Redevelopment Agencerat�e n process ng the
accounts, and withdrew all of its funds. LAIF was quite coop
withdrawals in a timely manner.
State Treasurer Lockyer invited local agencies to fev dea that the�local agencie�s have
agency funds with LAIF after February 1, 2012, r�0._
established new LAIF accounts in the name of an RDA successor agency.
Staff Report
RDA S.A. LAIF Resolution
March 8, 2012
Page 2 of 2
Staff proposes opening a new LAIF account for RDA Successor Agency— Palm Desert.
Even if the Successor Agency elects not to invest in LAIF at the present time, it would
be operationaily advantageou unt does not ave to be fund tl n� Under existing state
regulations, an open LAIF acco
Fiscal Analvsis
Under prevailing market conditions, a LAIF accou��nt would significantly increase interest
income for RDA Successor Agency - Palm Dese
Submitted By: �JZ1(���'!�'i�
,�o'� �, �� �d fa RQA `�-0
Ps�' �-���' �� oN lY1C�.rC!) �, ��Gl,� _
Paul S. Gibson, C. , C' Treasurer
v����a�� �Y. (�O�t�m
U�ig;r�al c;n f�(n �f�:h �;iiy �rk's C�fiice
ApprovaL
�.4�----�J
o n M. ohlmuth, City Manager
i
RESOLUTION NO. SA-i�`�� 005
RESOLUTION NO. SA-RDA 005
�;� A RESOLUTION OF THE BOARD OF ��T REDEVELOPMENT
SUCCESSOR AGENCY TO THE PALM DESER
AGENCY AUTHORIZING THE INVESTMENT OF MONIES IN THE
LOCAL AGENCY INVESTMENT FUND OF THE STATE OF
CALIFORNIA AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH
RECITALS:
A. AB X1 26 and AB X1 27 were signed by the Governor of California on
June 29, 2011 , making certain changes to the Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety
Code) (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").
B. The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of California (California Redevelopment
Association, et al. v. Matasantos, et al. (Case No. S194861)) alleging that AB X1 26 and
AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its
opinion in the Matosantos case �argely upholding AB X1 26, invalidating AB X1 27, and
holding that AB X1 26 may be severed from AB X1 27 and enforced independently.
C. The Supreme Court generally revised the effective dates and deadiines for
performance of obligations in Part 1.85 arising before May 1 , 2012, to take effect four
months later.
D. As a result of the Supreme Court's decision, the Palm Desert
Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the
City of Paim Desert (the "City"), created pursuant to the Redevelopment Law, was
dissolved pursuant to Part 1.85 on February 1, 2012.
E. By its Resolution No. 2011-76, adopted on August 25, 2011, the City
Council of the City made an election to serve as the successor agency to the
Redevelopment Agency under Part 1.85 (the "Successor Agency").
F. By its Resolution No. 2011-76, adopted on August 25, 2011, the City
Council, acting as the governing board for the Successor Agency, estabiished rules and
regulations applicable to the governance and operation of the Successor Agency, and
pursuant to such resolution provided that the Successor Agency will be governed by a
Board of Directors (the "Board") consisting of the members of the City Council of the
City.
,>.
.��:
��K�°�
RESOLUTION NO. SA-Rt,.-► 005
G. Pursuant to Chapter 730 of the statutes of 1976, Section 16429. was
�
added to the California Government Code to creaonies o�locaAagenciens for nvestmen�t
("LAIF") in the State Treasury for the deposit of m
by the State Treasurer.
H. The Redevelopment Agency from t29�tof the Cal forn aI Government A�F
in acc�rdance with the provisions of Section 164
Coc1E�.
I. Pursuant to Part 1.85, all assets and properties of the Redevelopment
Agency are transferred to the control of the Successor Agency as of February 1 , 2012.
�. In response to a request of the State Treasurer's Office, the Board wishes
to adopt this resolution authorizing the investment of Successor Agency monies in LAIF
and authorizing certain officers of the Successor Agency to order the deposit or
withdrawal of monies in LAIF on behalf of the Successor Agency.
NOW, THEREFORE, THE SUCCES NDSADETERMINESH RESO VESSAND
REDEVELOPMENT AGENCY, HEREBY FI ,
ORDERS AS FOLLOWS:
Section 1 . The above recitais are true and correct and are a substantive part '� F
of this Resolution.
Sect= The Board hereby finds that it is in the best interest of the
Successor Agency to deposit and withdraw monies in LAIF from time to time in
accordance with the provisions of Section 16429.1 of the California Government Code
for the purpose of investment as stated therein.
Sect= The deposit and withdrawal of the Successor Agency's monies in
LAIF in accordance with the provisions of Section 16429.1 of the California Government
Code from time to time for the purpose of investment as stated therein, and verification
by the State Treasurer's Office of ail banking information provided in that regard, are
herei�y authorized.
Section 4. The [Exen�F na�nce D�ecto] of the Successor[Agency, whose
Treasurer], and the [Assista
signature specimens are set forth in Exh►_ tde�osRor w thdrawai oflmonies in LAIF
such offices, are hereby authorized to order p
on behalf of the Successor Agency for any account of the Successor Agency (including
accounts maintained by the Redevelopment Agency which are now accounts of the
Successor Agency).
Sect_ The officers of the Successor Agency are hereby authorized and
directed, jointly and severally, to do any and all things, to execute and deliver any 4,
additional instruments which they may deem necessary or advisable in order to � ;ti
-2- �
RESOLUTION NO. SA-fi�A 005
effectuate the purposes of this Resolution and any such actions previously taken by
'�i such officers are hereby ratified and confirmed.
Section 6. The Secretary of the Successor Agency is hereby authorized and
directed to submit a certified copy of this Resolution and such forms as may be required
to the Office of the State Treasurer to effectuate the purposes of this Resolution.
PASSED AND ADOPTED this 8th day of March, 2012.
AY E S BENSON, FINERTY, HARNIK, KRl00NEN, and SPIEGEL
NOES: Norr�
ABSENT: rrorr�
ABSTAIN: NorrE
`
�,�. - ,
ROBERT A. SPIEGEL, HA N
ATTEST:
RA HELLE D. KLASSEN, ECRETARY
SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
�;
�,
-3-
. . � �
�
RESOLUTION NO. SA-RL. . 005 I
!
�
EXHIBIT "A"
Name Office Si�n�
j �
, f
� � i ����
John M. Wohlm�th [Executive Director] ��� ~��-��.- ��� ��_ -��` _
of Successor Ac�ency to the Palm
Desert Redevelopment Agency
i
Paul S. Gibson [Treasurer] G�- � �'—'
of Successor Agency to the Palm
Desert Redevelopment Agency
Thomas W. Jeffrey [Deputy Treasurer] . !�t'I��y � ��
of Successor Agency to the Palm
Desert Redevelopment Agency
Jose Luis Espinoza [Assistant Finance Director]
of Successor Agency to the Palm
Desert Redevelopment Agency
� �
���,
��
��x'Q
Exhibit A
CITY OF PALM DESERT���_�Fw�Y OVERSI�H�C' �qA�
�
OFF/CE OF THE ClTY TREASU���� , �p ����
STAFF REPORT �KTFIED BY�'r�l't l�
----t� ,� �
Otigival on file with City Clerk's Offittie
REQUEST: ADOPTI�N OF THE PALM DESERT STATEMENT OF
INVESTMENT POLICY, AS AMENDED (JOINT CONSIDERATION
WITH THE PALM DESERT CITY COUNCIL, THE RDA
SUCCESSOR AGENCY— PALM DESERT, THE FINANCING
AUTHORITY, AND THE HOUSING AUTHORITY).
SUBMITTED BY: Paul S. Gibsan, C.C.M.T., City Treasurer
DATE: March 8, 2012
CONTENTS: Proposed Amendments to Statement of Investment Policy
Recommendation
By Minute Motion: That the City Council adopt the Palm Desert Statement of
Investment Policy, as amended.
Background
At its February 28, 2012 meeting, the Audit, Finance, and Investment Committee
reviewed the proposed amendments, and voted unanimously to recommend that
the City Council adopt the investment policy as amended.
Both amendments are necessitated by the dissolution of the Palm Desert
Redeveiopment Agency ( RDA ) on January 31, 2012, and the establishment of the
�� „
"RDA Successor Agency -- Palm Desert" on February 1, 2012.
Amendment No. 1 would update the Palm Desert Statement of Investment Policy by
substituting "RDA Successor Agency— Palm Desert"for"Palm Desert Redevelopment
Agency" wherever that phrase is found in the body of the policy.
Amendment No. 2 would caise the concentration limit for local agency investment pools
("LGIPs") from 30 percent to 50 percent. Traditionally, both the City of Palm Desert
("City") and the City's outside auditor have calculated the concentration limit for LGlPs
by adding together a1l investments in LGIPs (numerator), and dividing by the sum of the
Staff Report
Adoption of Statement of Investment Policy as Amended
March 8, 2012
Page 2 of 2
City and RDA investment portFolios (denominator). With the elimination of the RDA, a
much smaller denominator must now be used, consistinq onlv of the City's investment
o� rtfolio. This will drive the City's concentration percentage significantly above the
existing 30 percent limit. This effect is further amplified by the increased sums of cash
that Staff is investing in LGIPs since they often provide greater profit opportunities than
do individual short-term securities under current market conditions.
Amendment No. 2 also includes the removal of a textual reference to the Local Agency
Investment Fund ("LAIF"), which is discussed under another section of the policy.
° ' ` ` '���" ro osed
Proposed additions to the investment policy are highlighted with ��i��� ; p p
deletions with "s#�+1Fe�",
Fiscal Analvsis
Under prevailing market conditions, raising the concentration limit for LGIPs to 50
percent would significantly increase interest income for both the City and the RDA
Successor Agency — Palm Desert investment portfolios, as well as enhance their
liquidity. �� 5����1�1„���
J
� �r]�
Submitted By: �N. �a�' �._ �1 ,
,�D�- � �/��IFIED CiY� 7 � ._
�5� �i���1�/ �"�' �(1��E1E1�t7l1�tf9�/if{l �!tV �iE?;'t� �� �.:tf1Cn
Paul S. Gibson, C. ., ity Treasurer �
t"f�"���_ .�,r , . . ... ��� � ��
Approval: ,.�.�a.i��.�1�,����.
- �.,�-.
� °°�:..: :��� ��y �=''.� �.r.� l�7 S
� ` �
J M. Wohlmuth, City Manager �;;�:rbul on file ►��$�.'�� ��E)i Cleck's C3fficE
ovrrcn�ox
APPROVED D�
RECEIVED OTHER
BY HC�i��G AUT�E J-�
MEE G DA'1� �� /�'�LI, S� �,U/;�
AYES: t�t►�! r -
NOES: VEF?iFlcQ �Y: �� ,.
ABSENTs . �y�_.�.
ABSTAIN: t�ri;!3r��.1 r�;� ri:� �rJ,t� �;��� �+r �?, •,_ .
VERIFIED BYs
Ori�inal on File with City erk'�Ot'!'ice
Palm Desert Treasury Policies and Procedures Revision No. 18
No.2: "Statement of Investment Policy" Adopted:5/12/11
1.0 Policy
It is the policy of the:
➢ City of Palm Desert;
➢ RDA'Successor Ager�cy-Palm
Desert
➢ Palm Desert Housing Authority;
➢ Palm Desert Financing Authority; and the
➢ Palm Desert Recreational Facilities Corporation
{hereafter referred to collectively as the "City") to: (1) comply with applicable law
governing the investment of public monies under the City Treasurer's control; (2)
protect the principal monies entrusted to the City; and (3) maximize profit within
the parameters of prudent risk management.
For the purposes of this policy:
➢ "Investment Officers" shalf be defined as the City Treasurer and the Deputy
City Treasurer.
➢ "Finance Committee" shall be defined as the Audit, Investment, and Finance
Committee.
➢ "City Council" shall be defined as the Palm Desert City Council.
2.0 Scope
This policy shall apply to all funds that are under the City Treasurer's control
including, but not limited to, the general fund; special revenue funds; debt service
funds; capital project funds; enterprise funds; and trust and agency funds. These
funds are accounted for in the City's Comprehensive Annual Financial Report.
The City's Deferred Compensation Plan ("Plan") shall be excluded from the
scope of this policy if the following three conditions exist: (1) a third-party
administrator manages the Plan; (2) individual plan participants have control over
the selection of investments; and (3) the City has no fiduciary responsibility to act
as a "trustee"for the Plan.
The only exception to the foregoing shall be that if the City retains the fiduciary
responsibility to act as a trustee for the Plan, then the Plan shall be deemed to be
within the scope of this policy.
The City Treasurer shall provide the Finance Committee with a quarterly report
on the investment of Plan assets.
Page 1
Palm Desert Treasury Policies and Procedures Revision No. 18
No.2: "Statement of Investment Policy" Adopted: 5%12/11
Securities Dealers. Broker applicants shall be required to provide state or local
government references from within California.
Any broker that has made a political contribution within any consecutive four-year
period following January 1, 1996 in an amount that exceeds the limits in
Municipal Securities Rulemaking Board ("MSRB"} Rule G-37, to any member of
or candidate for the City Council, the R�A�Succ�ssor
Ag�riC�-� P�Irrt Q_�s��t Bra2�rd, the Housing Authority Commission, or the Finance
Committee shall not be eligible to transact business with the City.
The Finance Committee and the City Council shall review the submitted
documents, along with the Investment Officers's recommendations, and decide if
any new brokers should be added to the authorized list. If, in the City's opinion, a
broker's RFI is missing, incomplete, late (submitted after the specified deadline),
or contains false or misleading information, or if the broker has not submitted all
of the documents that the City requires, then the City shall automatically reject
that broker's RFI, and the broker shall not be eligible to submit another RFI to the
City for three years.
The City Treasurer shall provide all authorized brokers annually, in January, with
a copy of the City's investment policy for that calendar year. The City
Treasurer's Office shall retain, on file, the annual financial statements of each
authorized broker for the preceding three years.
The City Treasurer shall maintain an authorized list (see Page 18) of all
commercial banks, savings associations, and federal associations (as defined by
California Financial Code Section 5102), and trust companies that the Finance
Committee and the City Council have authorized as public depositories of City
monies, in the form of checking, savings, and money market accounts, and
certificates of deposit. This list shall be provided to all members of the City
Cvuncil and the Finance Committee.
The City shall only deposit public monies in financial institutions that have:
8.0.11 At least $5 billion in total assets.
8.0.12 A core capital-to-total assets ratio of at least five percent.
8.0.13 Favorable statistical ratings from a nationally recognized rating service,
as determined by the City Treasurer.
8.0.14 A federal or a state charter.
8.0.15 A branch office within Riverside County. �
Page 6
Paim Desert Treasury Policies and Procedures Revision No. 18
No. 2: "Statement of In�estment Policy" Adopted: 5/12111
% of
No Type of Investment Portfolio Other Restrictions
Authorized
1 1 . Structured Notes in the form 20% Maximum maturity: 5 years
of callable securities or
"STRIPS" issued by the United
States Treasury or by Federal
Agencies or government-
sponsored enterprises ("GSE")
� '��i� ' �� r �.
�YF.."� ., ��, , Q�.?
12. Local Government Investment �8°�� Must meet above criteria for
Pools ("LGIPS") (exc/uding MMFs (except for ' ^'��.
bond the Riverside County
proceedsJ Treasurer's Pooled
Investment Fund).
10.0 Prohibited Investments
Investment Officers shall not invest public monies in financial instruments
that are not authorized under this policy.
Prohibited investments shall include, but shall not be limited to, equity
securities, bond mutual funds, reverse repurchase agreements, and derivative
contracts (forwards, futures, and options). The purchase of derivative
securities shall be prohibited, unless specifically authorized in this policy.
Investment Officers shall not engage in securities lending, short selling, or
other hedging strategies.
LAIF and MMFs shall be exempt from the prohibitions on derivative
contracts, derivative securities, reverse repurchase agreements, securities
lending, short selling, and other hedging strategies.
Page 12
Palm DeseR Treasury Policies and Procedures Revision No. 18
No. 2: "Statement of Investment Policy" Adopted: 5/72l11
The City shall obtain a minimum of three competitive offers. Any exceptions to
this po(icy shall be documented and shall be reported to the Finance Committee
at its ne3ct monthly meeting.
The City is required under the "U.S. Tax Reform Act of 1986" to perform annual
arbitrage calculations and to rebate excess earnings to the United States
Treasury from the investment of the gross proceeds of tax-exempt bonds that
were sold after the effective date of that law. The City Treasurer may contract
with qualified outside financial consultants to provide the necessary technical
expertise that is required to comply with this law.
19.0 Internal Controls
The City Treasurer shall ensure that all investment transactions comply with the
City's policy, and shall establish internal cantrols that are designed to prevent
losses due to fraud, negligence, and third-party misrepresentation.
Internal controls deemed most important shall include: avoidance of collusion;
separation of duties and administrative controls; separating transaction authority
from accounting and record keeping; custodial safekeeping; clear delegation of
authority; management approval and review of investment transactions; specific
limitations regarding securities losses and remedial action; written confirmation of
tefephone transactions; documentation of investment transactions and strategies;
and monitoring of results.
The City Treasurer shall establish a process of independent review by an
external audit firm of the City's investment program every three years. The
external auditor shall review the program's management in terms of compliance
with the internal controls that are specified in the City's Treasury Poficies and
Procedures Manual.
A Finance Committee consisting of City officials and community representatives
shall be responsible for reviewing the City investment reports, transactions,
policies and procedures, and strategies, on a monthly basis. The Mayor; the
Mayor Pro Tempore; the City Manager; the City Attorney; the �te�e�
Age�s� RDA Sucaes5or/�gency- Palm Desert Executive Director; the City
Treasurer; the Deputy City Treasurer; and various c+tizens who are appointed by
the City Council pursuant to City ordinance, shali sit on this committee.
20.0 Performance Standards
The investment portfolio shaMl be designed with the objective of obtaining a rate
of return throughout budgetary and economic cycles, commensurate with
investment risk constraints and cash flaw needs.
Page 15
Palm Desert Treasury Policies and Procedures Revision No. 18
No.2: "Statemertt of Investment Policy" Adopted:5112/11
maturity date, CUSIP number, average weighted yield, average days to maturity,
and market value (including source of market valuation). The report will include a
statement on compliance or noncompliance with the City's SOIP and a statement
on whether there are or are not sufficient funds to meet the City's anticipated
cash requirements for the next six months.
23.0 Investment Policy Adoption
The City Treasurer shall submit a Statement of Investment Policy to the Finance
Committee; the City Council; the F2bA Successor
Agency — Palm Desert Board; the Housing Authority Commission; the Financing
Authority Commission; and the Recreational Facilities Corparation Board of
Directors annually for their review and adoption.
Page 17
CITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: APPROVE CONTRACT NO. C27540 WITH WHITE NELSON DIEHL
EVANS LLP TO PERFORM A SPECIAL AUDIT FOR PALM DESERT
REDEVELOPMENT AGENCY AND PALM DESERT HOUSING
AUTHORITY FOR THE PERIOD ENDED JANUARY 31, 2012
Submitted by: Paul S. Gibson, Finance Director
Date: March 22, 2012
Contents: Engagement Letter
Recommendation
By Minute Motion, that the City Council approve the contract with White
Nelson Diehl Evans LLP to perform a special audit for the Palm Desert
Redevelopment Agency and Palm Desert Housing Authority for the period
ended January 31, 2012.
Backqround
On March 27, 2008, the City Council approved the selection of White Nelson Diehl
Evans LLP as independent auditors for the fiscal years ended June 30, 2008 through
June 30, 2014. This is the fifth year of the existing seven-year contract. Their services
include auditing the City, Successor Agency to the Palm Desert Redevelopment
Agency, the Housing Autharity's Apartment Complexes, Desert Willow and the City's
Office Complex. In addition, they perform reviews on Waste Management, Time Warner
Cable, and vari�us hotels on behalf of the City. Staff finds that White Nelson Diehl
Evans LLP has a professional staff that is knowiedgeable in the accounting arena and
feels comfortable in calling them when an accounting question arises.
Due to the dissolution of redevelopment agencies on January 31, 3012, the State of
Califarnia and the County of Riverside have imposed a requirement that audit work for
the period of July 1, 2011 through January 31, 2012 be completed by July 1, 2012. This
is considered a special audit in addition to the typical audit functions conducted on an
annual basis. Staff requests that the Ci#y Council approve the contract with White
Nelson Diehl Evans LLP to pe�form auditing services for the Palm Desert
Redevelopment Agency and Housing Authority for the period ended January 31, 2012.
Staff Report
Approvai of Contract No. C27540 —White Nelson Diehl Evans LLP
March 22, 2012
Page 2 of 2
Fiscal Imaact
Auditing services are contracted at a maximum of $16,300 for the Palm Desert
Redevelopment Agency and $3,300 for the Palm Desert Housing Authority for a total of
$19.600. Staff requests that the Successor Agency be responsible for payment of this
audit.
Submitted By: Approved by:
. ��� \
Paul S. ibson, Director of Finance n M. Wohlmuth, City Manager
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Approved* gY�V�,������.�. ���� �Reyes ABSENT)
ON �4-09-2012
VERIFIED BY RDK
4riginal on file ivith City Clerks Oflice
*Subject to discussion with legal counsel
and bond trustees about necessity therefor.
G�1FinanceWramA OrtegalStaflReportsL4udrrorslAuditrng Services 0313t2.docx
� �
March 13, 2012
Mr. Paul Gibson ,
Director of Finance
Palm Desert Redevelopment Agency
73-510 Fred Warning Drive
Palm Desert, CA 92260
Dcar Mr. Gibson:
We are pleased to confirm our understandin� of' the services we are to provide the Palm Desert
Redevelopment Agency (the Agency} for the period from July 1, ?Ol 1 to 3anuary 31, 2012. We wil)
audit the financial statements of the governmental activities, each major fund, and the aggxegate
remaining fund information, which collectively comprise the basic financial statements, of the Agency
as of and for tlie period ended January 31, 2012. Accounting standards generally accepted in the
United States of America provide for certain required supplementary information (RSI), such as
management's discussion and analysis (MD&A), to supplement the Agency's basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Baard who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. As part of our engageinent, we will apply certain limited procedures to the
Agency's RSI in accordance with auditing standards generally accepted in the United States of
Ainerica. These limited procedures will consist of inquiries of management regarding the methods of
preparing the information and cornparing the infoni�ation for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We will not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with suf�icient evidence to express an
opinion or provide any assurance. The following RSI is required by generally accepted accounting
principles and will be subjected to certain limited procedures,but will not be audited:
1) Management's Discussion and Analysis
2) Budgetary Comparison Schedules - Major Special Revenue Funds
1
2875 Michetle Drive,Suite 300, Irvine,CA 92606 • Tel:714.978.1300 • Fax: 714.978.7893
Uffices locuted in Orange and San Diego Counties
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency
March 13, 2012
Page 2
We have also been engaged to report on supplementary information other than RSI that accompanies
the Agency's financial statements. We will subject the following supplementary information to the
auditing procedures applied in our audit of the financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additiona] procedures in accordance with auditing standards generally accepted in the United States of
America and will provide an opinion on it in relation to the financial statements as a whole:
1) Combining and individual other governmental fund financial statements.
Audit Qbjectives:
The objective of our audit is the expression of opinions as to whether your basic financial statements
are fairly presented, in all material respects, in cont'ormity with accounting principles generally
accepted in the United States of America and to report on the fairness of the suppiementary
information referred to in the second paragraph when considered in relation to the financial statements
taken as a whole. Our audit will be conducted in accordance with auditing standards generally
accepted in the United States of America and the standards for financial audits contained in
Government Auditin� Standards, issued by the Comptroller General of the United States, and will
include tests of the accounting records of the Agency and other procedures we consider necessary to
enable us to express such opinions. If our opinions on the financial statements are other than
unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or to issue a report as a result of this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the
financial statements and compliance with laws, regulations, and the provisions of contracts or grant
agreements, noncompliance with which could have a material effect on the financial statements as
required by Govemment Auditin�Standards. The report on internal eontrol and compliance will
include a statement that the report is intended solely for the information and use of management, the
body of individual charged with governance, others within the Agency, and specific legislative or
regulatory bodies and is not intended to be and should not be used by anyone other than these specified
parties. If during our audit we become aware that the Agency is subject to an audit requirement that is
not encompassed in the terms of this engagement, we will communicate to management and those
charged with governance that an audit in accordance with auditing standards generally accepted in the
United States of America and the standards for financial audits contained in Government Auditin�
5tandards may not satisfy the relevant legal, reguiatory, or contractual requirements.
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency
March I3,2012
Page 3
ManagemenY Responsibilities:
Management is responsible for the basic financial statements and all accompanying information as
well as all representations contained therein. As part af the audit, we will assist with preparation of
your financial statements and related notes. You are responsible for making all management decisions
and performing alI management functions relating to the financial statennents and related notes and for
accepting full responsibility for such decisions. You will be required to acknowledge in the
management representation tetter our assistance with preparation of the financial statements and that
you have reviewed and approved the financial statements and related notes prior to their issuance and
have accepted responsibility for them. Further, you are required to designate an individual with
suitabte skill, knowledge, or experience to oversee any nonaudit services we provide and for evaluating
the adequacy and results of those services and accepting responsibility for them.
Management is responsible for establishing and maintaining effective internal controls, including
evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are
met, for the selection and application of accounting principles, and for the fair presentation in the
financial statements of the respective finaneial position of the governmental activities, each major
fund, and the aggregate reinaining fund infarmation of the Agency and the respective changes in
financial position and, where applicable, cash flows in conformity with accounting principles generally
accepted in the United States of America.
Management is also responsible for rnaking all financia] records and related information avaiiable to us
and for ensuring that management and financial information is reliable and properly recorded. Your
responsibilities include adjusting the financial statements to conect material misstatements and for
confirming to us in the representation letter that the efFects of any uncorrected misstatements
aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving
(I)management, (2) employees who have significant roles in internal control, and (3)others where the
fraud or illegal acts could have a material effect on the financial statements. Your responsibilities
include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the
government received in cornmunications from employees, former employees, grantors, regulators, or
others. In addition, you are responsible for identifying and ensuring that the Agency complies with
applicable iaws, regulations, contracts, agreements, and grants for ta.king timely and appropriate steps
to remedy any fraud, illegal acts, violations of contracts or grant agreements, or abuse that we may
report. You are responsible for the preparation of the supplementary information in conformity with
accounting principles generally accepted in the United States of America. You agree to include our
report on the supplementary information in any document that contains and indieates thak we have
reported on the supplementary information.
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency
March 13,2012
Page 4
Management Responsibilities (Condnued):
Management is responsible for establishing and maintaining a process for tracking the status of audit
findings and recommendations. Management is also responsible for identifying for us previous
financial audits, attestation engagements, performance audits, or other studies related to the objectives
discussed in the Audit Objectives section of this Ietter. This responsibility includes relaying to us
corrective actions taken to address significant findings and recommendations resulting from those
audits, attestation engagennents, performance audits, or studies. You are also responsible for providing
management's views on our current findings, conclusions, and recommendations, as well as your
planned corrective actions, for the report, and for the timing and format for providing that information.
Audit Procedures - General:
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit wi]1 involve judgment about the number of transactions to be
examined and the areas to be tested. We wil] plan and perform the audit to obtain reasonable rather
than absolute assurance about whether the financial statements are free of material misstatement,
whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or
(4) violations of laws or governmental regulations that are attributable to the Agency or to acts by
management or employees acting on behalf of the Agency. Because the determination of abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because an audit is designed to provide reasonable, but not absolute assurance and because we will not
perform a detailed examination of all transactions, there is a risk that material misstatements may exist
and not be detected by us. 1n addition, an audit is not designed to detect immaterial misstatements or
violations of laws or governmental regulations that do not have a direct and material effect on the
financial statements. However, we will inform you of any material errors and any fraudulent financial
reporting or misappropriation of assets that come to our attention. We will also inform you of any
violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does
not extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will request written representations from your
attorneys as part of the engagement, and they ma� bill you for responding to this inquiry, At the
conclusion of our audit, we will require certain written representations from you about the financial
statements and related matters.
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency
March 13,2012
Page 5
Audit Procedures-Internal Controls:
Our audit will include obtaining an understanding of the Agency and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing, and extent of further audit procedures. Tests of controls may be performed
to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors
and fraud that are material to the financial statements and to preventing and detecting misstatements
resulting from ille�al acts and other noncompliance matters that have a direct and material effect on the
financial statements. Our tests, if performed, will be less in scope than would be necessary to render an
opinion on internal control and, accordingly, no opinion will be expressed in our report on internal
control issued pursuant to Government Auditing Standards.
An audit is not designed ta provide assurance on internal control or to identify significant deficiencies.
However, during the audit, we will communicate to management and those charged with governance
internal controt related matters that are required to be comrnunicated under A1CPA professional
standards and Government Auditin� Standards.
Audit Procedures- Compliance:
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the Agency's compliance with the provisions of applicable
laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to
provide an opinion on overall compliance and we will not express such an opinian in our report on
compliance issued pursuant to Government Auditin� Standards.
Audit Administration,Fees and Other:
Noted below is a listing of work required by Ageney staff to assist in the audit.
1. Technical assistance in familiarizing our staff with:
• The flow of information through the various departments and accounting systems.
• Reports generated by your accounting system.
• The system of interna] controls.
• Controls established to monitor compliance with federal grants.
2. Preparation of trial balances for atl funds, after posting of a11 year end journal entries.
3. Preparation of schedules supp�rting all major balance sheet accounts, and selected revenue and
expenditure accounts.
4. Typing of all contirmation requests.
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency
March 13,2012
Page 6
Audit Admuustration, Fees and Other(Continued):
Work Required by Agency Staff(Continued):
5. Pulling and refiling of all supporting documents required for audit verification,
6. Preparation of the basic financial statements and notes.
7. Preparation of the management's discussion and analysis.
Our maximurn annual fee for the audit of the Agency's financial statements for the period ended
January 31, 2012 will be $19,000.
The maximum annual fee stipulated herein contemplates that conditions satisfactory to the normal
progress and completion of the examination will be encountered and the Agency accounting personnel
will furnish the agreed upon assistance in connection with the audit, However, if unusual
circumstances are encountered which make it necessary for us to do additional work; we shall report
such conditions to the responsible Agency officials and provide the Agency with an estimate of the
additional accounting fees involved. You may terminate our services or we may withdraw from this
engagernent at any time. Any disputes arising under this agreement shall be mediated under the rules
of the American Arbitration Assoeiation.
The workpapers for this engagement are the property of White Nelson Diehl Evans LLP and constitute
confidential information. However, we may be requested to make certain workpapers available to
grantor agencies pursuant to authority given to it by law or regulation. If requested, access to such
workpapers will be provided under the supervision of our personnel. Furthermore, tipon request, we
may provide photocopies of selected workpapers to the grantor agencies. The grantor agencies may
intend, or decide, to distribute the photocopies or infortnation contained therein to others, inctuding
other governmental agencies.
In accordance with our firm's current record retention palicy, all of your original records witl be
returned to you at the conclusion of this engagement. Our accounting workpaper files wi11 be kept for
a period of seven years after the issuance of the audit report. All other files will be kept for as long as
you retain us as your accountants. However, upon termination of our service, all records will be
destroyed after a period of seven years, Physical deterioration or catastrophic events may further
shorten the life of these records. The working papers and files of our firm are not a substitute for your
original records.
Government Auditin� Standards require that we provide you with a copy of our most recent external
peer review report and any letter of comment, and any subsequent peer review reports and letters of
comment received during the period of the contract. Our 2009 peer reviews accompany this letter.
Mr. Paul Gibson
Director of Finance
Palm Desert Redevelopment Agency �
March 13, 2012
Page 7
We appreciate the opportunity to be of service to the Palm Desert Redevelopment Agency and believe
this letter accurately summarizes the significant terms of our engagement. If you have any questions,
please let us know. If you agree with the terms of our engagement as described in this ietter, please
sign the enclosed copy and return it to us.
Very truly yours,
WHITE NELSON DIEHL EVANS LLP
By: � � P�_
Nitin P. Patel, CPA
Enga�ement Partner
RESPONSE:
This letter correctly sets forth the understanding
of the I'alm Desert Redevelopment Agency
By
Title
Date .
HEiDENREICH & HEIDENREICH, CPAs, PLLC
10201 S.51"Street #170
Phoenix,AZ 85044
(480)T04-6301 fax 785-4619
System Review Report
January 28,2009
To the Owners of
Diehi, Evans&Company, LLP
and the Peer Review Committee of the CA Society of GPAs
We have reviewed the system of quality control for the accounting and auditing practice of Diehl,
Evans&Company, LLP(the firm) in effect for the year ended September 30,2008. Our peer
review was conducted in accordance with the Skandards for Performing and Reporting on Peer
Reviews established by the Peer Review Board of the American Institute of Certified Public
Accountants.The firm is responsible for designing a system of quality controi and complying with
it to provide the firm with reasonable assurance of performing and reporting in co�formity with
applicable professional standards in all material respects. Our responsibility is to express an
opinion on the design of the system of quality control and the firm's compliance therewith based
on our review.The nature,objectives, scope, limitations of, and the procedures performed in a
System Review are described in the standards at www.aicpa.org/prsummary.
As required by the standards, engagements selected for review included engagements performed
under the Government Auditing Standards and audits of empioyee benefit plans.
In our opinion, the system of quality control for the accounting and auditing practice of Diehl,
Evans&Company, I.LP in effect for the year ended September 30,2008, has been suitably
designed and complied with to provide#he firm with reasonable assurance of performing and
repo�ting in conformity with applicable professional standards in all material respects. Firms can
receive a rating of pass,pass with deficiency(ies)or fai(. Diehl, Evans&Company, LLP has
received a peer review rating of pass.
Jl,e�i�den�e.�c1� � Jl.edde�►�ei��
Heidenreich& Heidenreich, CPAs, PLLC
��. Clift�on
Gunder�on LLp
Certified Pubiic Accountants&Consultants
System Review Report
To the Partners
White Nelson & Co., LLP
and the Peer Review Committee of the Califomia Society of Certified Pubiic Accountants
We have reviewed the system of quality control for the accounting and auditing praetice of
White Nelson &Co., LLP (the firm) in effect for the year ended March 31, 2009, Our peer review
was conducted in accardance with #he Standards for Performing and Reporting on Paer
Reviews established by the Peer Review Board of the American Institute of Certified Public
Accountants. The firm is responsibfe for designing a system of quality contra and complying
with it to provide the firm with reasonabie assurance of performing and reporting in conformity
with applicable professional standards in all material respects. Our responsibility is tv express
an opinion on the design of the system of quality control and #he firm's cAmplianca therewith
based on our review. The nature, objectives, scope, limitations of, and the procedures
performed in a System Review are described in the standards af www.aicqa.org/prsummaN.
As required by the standards, engagement selected for review included engagements
performed under the Govemment Audi�ing Sfandards and audits of employee benefit plans.
)n oUr opinion, the system of quali#y control for the accounting and auditing practice of Whlte
Nelsan & Co., LLP in effect for the year ended March 31, 2009, has been suitably designed and
complied with to provide the firm with reasonable assurance of perforrning and reporting in
conformity with applicable professional standards in all material respecfs. Firms can receive a
rating of pass, pass wifh defrcrency(ies) ar fail. White Nelson & Co., LLP has received a peer
review rating of pass.
, / �
� d-l�rn-
Phoenix, Arizona
September 30, 2�09
....,
OfCca in 17 s[a�cs and Washing[on,DC ��^terna[ion�l
Palm Desert RDA Prepared By: Nitin Patel
Budget for 1/31/2012 Audit Date: 3/11/12
Description Hours
Audit planning/general audit programs 16
Compliance audit 12
Internal controls 12
Cash and Investments 12
Receivables 8
Payables 8
Long term debt 12
Revenues 6
Expenditures 12
Supervision and Review(Partner) 16
Subtotal 114
Travel 10
Total Estimated Hours without Housing Authority 124
Fee Determination
RQA Audit without Housing Authority Hourly Total
Hours Rate Cost
Staff 54 $ 96 $ 5,184
Senior 54 113 6,102
Partner 16 197 3,152
124 14,438
Out-of pocket
Lodging (240 *8) 1,120
Meals(40*8) 320
Mileage 422
Total out-of-pocket 1,862
Total for Audit without Housing Authority $ 16,300
Haurly
Housing Authority�lodi) Hours Rate
Staff accountant(travel) 8 $ 96 $ 768
Staff accountant (fieldwork) 16 96 1,536
Supervision 2 197 394
5ubtotal 2,698
Airfare 300
Hotel(2 nights) 250
Meals 52
Total for Housing Authority $ 3,300
Totals for 1/31/2012 audit $ 19,600
�
JOINT CONSIDERATION
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
WITH
PALM DESERT CITY COUNCiL
STAFF REPORT
REQUEST: REQUEST FOR ADOPTION OF A SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY CONFLICT OF
INTEREST CODE PURSUANT TO THE POL�TICAL REFORM ACT,
GOVERNMENT CODE SECTIONS 81000, ET SEQ.
� � �n C A�s�+�r')
BMITTED BY: Rachelle D. Klassen, Secretary���-s�'�SY O�ERSIGH�ARI�
SU ON�__�__D�-OQ -��12�--.-�
DATE: March 22, 2012 1,'�TERIFIED BY.___��
—t---------------------.
CONTENTS: • Staff Report ,Original on file with City Clerk's Of�ice
• Resolution No. SA-RDA oob
Recommendation
1) Waive further reading and adopt Resolution No. SA-RDA o06 , adopting a
Conflict of Interest Code Containing Designated Positions and Disclasure
Categories for the Successor Agency to the Palm Desert Redevelopment Agency.
2) As Code Reviewing Body, the City Council, by Minute Motion, approve the
Successor Agency to the Palm Desert Redevelopment.Agency Conflict of Interest
Code and all associated actions to be taken in connection therewith.
Background
The Political Reform Act, Government Code Sections 81000, et seq., requires the Board of
Directors of the Successor Agency to the Palm Desert Redevelopment Agency to adopt a
Conflict of Interest Code and requires every focal government agency to review its Conflict
of Interest Code biennially to determine if it is accurate and up-to-date. By the attached
Resolution, the Successor Agency is adopting a Conflict of [nterest Code, which contains
designated pasitions and disclosure categories.
The Fair Political Practices Commission's Model Code is included in the attached
Resolution as Exhibit "A." Appendix A sets forth the designated positions and the
disclosure categories for each position of the Successor Agency and shall constitute the
Conflict of Interest Code for the Successor Agency.
Persons holding designated positions listed in Appendix A shall file Statements of
Economic Interest pursuant to Section 5 of the Conflict of I nterest Code with the information
required for the disclosure category assigned to them, unless otherwise exempted from
do+ng so pursuant to Section 3 of the Conflict of Interest Code.
' Staff Report - JOINT CONSIDERATION - Successor Agency Conflict of Interest Code
March 22, 2012
Page No. 2
The Successor Agency's Conf{ict of Interest Code is also hereby forwarded to the City
Council, as Code Reviewing Body for the Successor Agency, for its approval of the Code.
The City Council will also formally designate the City Clerk of the City as the filing officer
for reports required to be filed pursuant to the Conflict of Interest Code.
Fisca! Analysis
Adoption of this Resolution is necessary for the Successor Agency to comply with the
Political Reform Act. The City Clerk will incur additional time and expense in performing
duties as the filing officer for the Successar Agency. The dollar amount of that expense is
not anticipated to be significant and cannot be accurately estimated at this time.
Submitted by: Reviewed:
R helle D. Klassen, MM , City Clerk J tin McCarthy, Assista y Manager
Reviewed:
� CtTY C�UNCIL�L�iTON
���� APPROVED DENTED
,��J,� RECEIVED OTHER��-- _
Paul S. Gibson, Directar of Finance/City Trea MEET G D� � � � !- > -.
AYFS: ��1 / � ' �E' e
Approved: NOES: __� -\�
ABSF.NT: .-.
� � ARSTAiNt / �_------
< � V�:RIFIED BY: ._____..__
Originat on File with City k's Office
J M. Wohlmuth, City Manager
� � C,�,������� f���1 C
Attachments (as noted) -}�RDA
��, l��C�r�f 1 �ia ._ao�
v����iEa gY_.�ll� d�c
�
Origi�t�1 on fiip wit!� �Jity CIF�F�k's C1flir,:�
H:IWPdataIWPDOCSVOVERSlGHT BOARD1StaN Reporislstaf/repor[-COl-SA-PDRDA.wpd
RESOLUTION NO. SA-RDA 006
;(�:.y.,
��; A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY, ADOPTING A CONFLICT
OF INTEREST CODE CONTAINING DESIGNATED
P4SITIONS AND DISCLOSURE CATEGORIES
THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY FIND, RESOLVE,
AND ORDER AS FOLL�WS:
Section l. The Political Reform Act, Goverrunent Code Section 81000, et s�,.,
(the "Political Refoi7n Act") requires the Successor Agency to the Palm Desert Redevelopment
Agency("Agency") to adopt a conflict of interest code.
Section 2. The Fair Political Practices Commission has adopted a Model Conflict
of Interest Code (the "Model Code"). The Model Code, codified at 2 California Code of
Regulations Section 18730, can be incoiporated by reference by the Agency as its conflict of
interest code. That Model Code will be amended by the Fair Political Practices Commission
from tirne to time to conform to amendments to the Political Refonn Act.
�k Section 3. By this resolution the Agency is adopting a Conflict of Interest Code
w�$� which contains designated positions and disclosure categories.
�«:
Section 4. The Model Code, attached hereto as Exhibit "A" and any amendments
to it duly adopted by the Fair Political Practices Commission, a.nd Appendix A which sets forth
the designated positions and the disclosure categories for each position of the Agency are hereby
incorporated by reference and sha11 constitute the Conflict of Interest Code for the Successor
Agency to the Palm Desert Redevelopment Agency.
Section 5. Persons holding designated positions listed in Appendix A shall file
Sta.tements of Economic Interest pursuant to Section 5 of the Conflict of Interest Code with the
information required for the disclosure category assigned to them unless exempt from filing such
Statements pursuant to Section 3 of the Conflict of Interest Code.
Section 6. Pursuant to the Political Reform Act, a person holding a designated
position listed in this Conflict of Interest Code that violates any provisions of this Code is subject
to administrative, criminal and civil sanctions provided in the Politica.l Reform Act. In addition,
if a person who holds a designated position makes, participates in making or otherwise attempts
to use his or her official position to influence a decision of the Agency in which he or she has a
financial interest, he or she may also be subject to additional administrative, criminal and civil
sanctions and the decision may be set aside and voided pursuant to Government Code Section
91003.
, .
:,.�t
81000-0172\1428464v1.doc
i
` RLsoLu�rioN No. s�-Rv� �,,�
Section 7. The Secretary of the Agency shall certify to the passage and adoption
of this Resolution and shall submit a copy of this Code to the City Council for its approval as the �`,.
Code Reviewing Body for the Successor Agency to the Palm Desert Redevelopment Agency. �'
PASSED, APPROVED and ADOPTED this 22nd day of March ,
2012, at a regular meeting of the Successor Agency to the Palm Desert Redevelopment Agency
Board of Directors by the following vote, to wit:
AYES: BENSON, FINERTY, HARNIK, RROONEN, and SPIEGEL
NOES: Nor�
ABSENT: Nor�
ABSTAIN: NorrE
.
�,s C.l'i J �
ROBERT A. SPIEGE , "C 7��
Sa.,xr�n
?'i4...i::
ATTEST: '
s��
a><�-
R.A H LLE D. K ASSE , SECRETAR
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
�<'
�,,3„
�;a�w'
—2—
81000-0172\1428464v1.doc
RL;SQLU`I'lON NO. SA-RDA ��6
�.::�:
EXHIBIT A
;�;.
` � Conflict of Interest Code
(Rc,ulati��ns of the f�air Political I'racticcs C'ommissic�n,"fitic?. 1)ivitii�,n 6,Calii�miia Cc�cic c�f'
Ite�ulatic>ns.}
§ I8730. f'rovisians c�f Conllict-c�l�-lnfcrest Codcs.
(a) Incoi�pocation l�y refa•ence c�Ftl�e terms of this regulation along �vith lhe desibnation
ofern�luyecs and the formul��tion ofclisclosure categories in the Appendix reteri�e�l ta belo�v
constitute the acioption and promulgation of a conllict-ot=interest code �vithin the ineaning ��f
.S'ectiun 37300 or the amenclitient of a contliet-oC interest code�vithin the meaning of Section
873U6 if the tcrms of tl�is regulation are substituted for terms of a conflict-oi=interest code
alre3cly in effect. A eode so arnendecJ or adopted and promuigated requires the reportittg of
repoi7�ble items in a manner substantial(y equivalent to the rec�uirements ofarticle 2 of cha�ter 7
". of the Politica) Reform Act, Sections 81000, et sey. The requiremei�ts ofa conflict-ot=interest
m:.
���'�` code are in addition to other requirements of the Polilical Reform Act, such as the genera(
prohibition against conflicts of interest contained in Section 87100,and to other state or local
la�vs pertaining to conflicts of interest.
(b)The terms ofa conFlict-of=interest code amended or adopted and promulgated
pursuant to this regutation are as follo«�s
(I) Section l. Definitions.
The definitions contained in the Potitical Reform Act of 197d, regulations of the Fair
Politica) Practices Commission (Regulations 18110,et seq.),ancl any amendments to the Act or
re��ul�tions, are incarpor�tecl by refcrence into this conflict-ot=interest code.
(2} Section 2. Designated E?mp(ouees.
;:�t:
� Exhibit A-1
81000-0172\1428464v1.doc
RL'SOLU'I'lON NO. SA-KUA Uu6
'I�hc��crsuns h��l�lin�;pusitiuns listccl in thc/lppcncli� arc<Icsignated employccs. It has .,:�
�:�.
hccn d�fe.nnincd that thcsc�irrscros n�akc or partici�ialc in thc nic�kin�,1)I(ICCItilO11S 4VI11CI1 11)il�'
tnresecal�ly havc a material el7cct cm cecmomic inlcrests. ',
(3)Sectiun i. L)iscl��tiurc(.'atc;;t�ries.
"I'his c.c�cle docs ne�t es(ablish �i����CIISCIOtil1I'C�C)Illli?�lflQl'1 IClI'fI1OSC CICSI�II'c1teCl �I17pI0YC4'S
who 1re��Iso specified in S�etian 8720U if thcy are designated in this code in thal same capacity
or if the gecigraphical jurisdictiem c�f this agency is the s�unc as or is wholly included �vithin the
j�n•isdiction in 4vhich thosc persons must report their economic interests pursuant to article 2 c�f`
cha��ler 7 of the Political ReForm Act, Sections 87200, et seq,
In adcJition, tliis codr.does not establish any disclosure obligaliun for any desi�nated
empfayees who are designated in a conflict-of-interest code for anotiier agency, if all of the
Following a�ply:
(A)`I'he geographical jtu•isdiction of this agency is the same 1s or is whally included
!p�:
within the juriscliction oi'the nther agency; � �'�f�.�
(B)The disclosure assignecf in the eode of the other ageney is the same as that recµiired
under���ticle 2 of chaptec 7 of the Political Reform Act,Section 87200;and
(C)'fhe filing officer is the same for both agencics.l'
Such persons are covered l�y this code for disqualificaticm purposes only.With respect to
a(1 other desianated employees, the disclosure categories set forth in the Appendix specify�vhich
kinds ofeconomic interests are re�c�rtable. Such a design�ted employee sha(f disclose in his or
her statement of economir interests those economic interests he or she has�vhich are of thc hind
described in the disclosure categories to which he or she is assigned in the Appendix. (t has Ueen
deteri��ined that the ecanomic interests set Forth in a designated employee's disclosure categories
F,-.,
;.*�
>,:°,
Exhibit A-2
81000-0172\1428464vi.doc
RLSOLU'C10N NO. SA-RDA �06
4�'" arc thc kinds c�l'ccorn�mic inlcrests�vhich he or she fi�rc:scrabl��can ��rr«c►p�►rtr���ny�n���,��L�h (hc
�°�
conduct ot'his on c�r ol�li�r.
(4)Section �i. Statements of Economic Intcrests: ('lace of�iling.
"I'he cc�de revie�ving body shall instruct all dr:si��nated employees within its code to file
stritements ofcconomic intere:sts with the�gcncy or with the cade revie�ving body, as ��rc�vidccl
by the code reviewing body in lhe agcncy's cont7ict-af=interest cocie.`
(5) Section >. Statcmcnts of[:cono►nic Interests: 'fime of I�iling.
(A) Iriitial Sl�icements. All designzted employces employed by the agency on the e('ti:ctive
date of this code,as originally adoptcd,promulgated and a�proved l�y the code reviewing baciy,
shall file statcme:nts wiihin 3O days afte�•the effective date ofthis code. 7'hereafter, each person
already in a position when it is designated by an amendment to this cade shall tile an initial
statement within 30 days aFter the effective date c�Fthe amendment.
(B)Assuming Oftice Statements. All persons ass�mling clesignated positions atter the
����
,��, effective date ofthis code shall file statements within 30 days after assumingthe des'sgnated
positions,or ifsubject to 5tate Senate confirm�tion,30 ciays aftee bf:ing nominated or appointed.
(C)Annual Statements. All designated employees shall (ile staternents no later tha��April
1.
(D) Leaving Office Statements.All persons who leave designated positions shall file
statements withii�30 days after ieaving office.
(5.�)Section 5.�.Statements for Persons Who Resign Prior to Assuming Office.
Any person tivho resigns�vithin 12 months of initial appointment.or within 30 cla��s of thc
date of notice provided by the filing officer to file an assuming of�7ce statement, is not deemed to
have assumed otifice or left office, provided he or she did not make or participate in the makin�
i;�';
Exhibit A-3 �
81000-0172\1428464v1.doc I
RI;SOLUTION NO. SA-RDA OUb ___
ol,ur use his on c�r{�i�sitiun tu inlluc:nce any cicc:isit+n ar�d clid nat receive or beeomc rntitlecl lo F��
;.;T�
receive any li�rm uF�iayment as a result of his ur hrr a������intmcnt. Such pc�suns shall not lilc
cither an assumin��or Icaving c�ffice statement.
(A)Any person who resi�ns a pasition ���ithin 30 dzys of the date oFa nolice tr�m the:
Iiling ol'fice�•sh�ill do both ofthe fbllc�wing:
(I) Pile a written resi�;natioai with lhe appointing powei•; and
(2) f�ile ii WI'IttCll Sl�tC111�11i�VI�II LI1C IIIIII�.!c�fficer declaring undcr penllty c�f'��erjuiy that
during thc peric�d between appoint►nent and resignation he or she did not make, partici��ate in the
making,or use the position to inthienec any decision of the agency or receive,or become entitied
to receive, any form of payment by virtue of bcing appointed to the nosition.
(6)Section 6.Contents of and Yeriod Covered by Statements of Fconomic lnterests.
(A)Contcnts oi'I�iitial Statements.
lnitial statements shall disclose any reUortable investments, interests in rea! property and
�
s
��u
X��;.
b��siness positions held on the eFFective date oF the cade and income received durin�the 12 "''`�'
months prior to the effective date of the code.
(B)Contents ot�Assu�ning Office Statements.
Assumine office statements shall disclose�ny reportable investments, interests in real
property and business positions held on the date of assuming office or, if subject to Slate Senate
confirmatian or appointment,on the date of nomination.and income received ciuring the 12
months prior to the datc oFassuming oFfice or the date of being appointed or nominated.
respectivelti•.
' (C)Contents oFAnnual Statements. Annual stalements shall disclose any reportable
investmen#s, interests in real propei�ty, income and business positions held ar received during the
�.
+;;1���.
�:,;,
Exhibit A-4
81000-0172\1428464v1.doc
KLSOLUTION NO. SA-RDA �06
���' ��rcvit►us calcncl<u-ycru� E�roviclid. hawwcvcr. that the period covcrcd by�in emE�loycc's 17rst annual
''���
statcmcnt shall hc:s�in c►n the ef'fcctivr date ui�the cod�or the datc ofassumin�� ot'fice �vhiche;vcr
is latrr, or fi�r a hoarcl or conui�issicm m�nibcr subjecl to Seetion $7302.G. the day atter the
clusin�c(ate oFthe most recent statcment tilcd by the member pursuant to Regulation 1875d,
(i)) Ccmtents of Leaving Ofl7�e Statements.
Le�vinr�oftice statements shall disclose repo►-t�ilale investments, interests in re�tt prope►•ty,
incc�n�e and business positions helcl or received during the period bet�veen the closing date of the
last statement filed and the date of leaving office.
(7) Scction 7. Manner af Reporting.
Statements of economic intecesis shall be made on forms presa•ibeci by the Fair Politic�l
E'rac:tices Commission and suppfied by the agency, and shall contain the following ulformation:
(A) Investment and Rcal Property Disclosure.
�,,
f�>
1��� When an investment or an interest in real property3 is required to be reported,�the
it4„
staternent shall contain the following.
l. A statement of the nature of the investment or interest;
2. The name ofthe business entity in �vhich each investment is held, and a gei�eral
description of the business activity 'rn which the business entity is eng�ged;
3. The address or other precise (ocation of the real property;
4. A statement whether the f�ir market v11ue of the investment or interest in real property
equals or exceeds$2,000, exceeds $IO,OOU,e�ceeds$100,000, or exceeds$1,OOO,U00.
(E3) Persona( Income Disclosure. ��vhen personal income is requircci to be re�orted.'the
statement shall contain:
1�
�
Exhibit A-5
81000-0172\1428464v1.doc
R�;SOLUTION NO. SA-RUA ���
�a
I. 'I hc namc and address c�l�cach s<�urcc ol�incotnc aggregating R500 c�r morc in valuc,or �.�<
�giU c�r mcirc in value if ihe incuirrc �4as ti �,ilt, rmd a gencral description of the business activiq�,
il�an��.��I'each source;
2. n statc�nent whether the aggregate value c�F income ti�om cach soin•ce, or in the case c�f
a lo�+n, thc highc;st �1I110L111L 04VCCI �(1 Ci1CIl SOUI'CC, w�s �I,000 or less, �reater than $1,000, breater
than $I U,000, or gre�iter than $I 00,000;
3. n dcscription of the considcration, it'any, f��r which the incorne was received;
4. In the case of a gift, the narnc, addi•ess and business activity of the donor and any
intermediary through which the gilt was made; a description of the gift; the amount oc value of
the gift;and the date an which the gif't was received;
�, ln the c�se of a loan, thc annual interest rate and the security, if any, given for the laan
and the tei•m of�the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including "�
ty,��
S�;
income oFa sole proprietorship, is required to be reported,b the statement shall contain:
l.The name,address,and a gei�cral description pf the business activity of the business
entity:
2.The name of every person from whom the business entity received payments if the
filcr's pro rat�share ofgross receipts fi�om such person was equal to or greater tllan$10,0�Q.
(D) Business Position Disclosure. When business positions are required to be reported,a
desiLnated ernployee shall list the name ancl address ofeach business entity in which he or she is
a director, officer, partner,trustec,employee, or in which lze or she holds any position of
management,a description of the b«siness activity in which the husiness entity is engaged, and
the designated employee's position with thc business entity.
��-
^ '
Exhibit A-6
81000-0172\1428464v1.doc
RESOLU`I'1ON NO. SA-RDA U06
-� (li) ilcquisition or Uispc�sal laurin`� (Zepc�rtin� I'criocl. In thc casc uf�an annu��l or Icavin�.�
.���, oi'lice staitement, ifan investnrent or an inlcrest in rca) r�� c.rty�va�
p p' partially ur wholly ac;quii•cd
c>r dispc�sed c>f cluring the period c:overed hy the statement, the statement shall contain the date of
acyuisition or dispasaL
(8) S�ction 8. I'rohibition on lZeccipt c�f Honoraria.
(A} No mcmber oFa st�►tc: bolrc{or e�mmission, 1nd no designatecl emplc�yee of a state ai-
Icical ��t>vernmcnt agency, shal I accept any honorarium from any sow•ce, i f�lhe member or
employec tvould be required lo reporl the receipt of'income or gifts Froin thlt source on lais or her
statement of cconomic interests. 'I'his section sliall i�ot app(y to any part-time member of the
governing board ofi any public institution of'hi�l�er education, u»less the mernber is also an
elecked �ffiicial.
Subdivisions(a), (b), and {c) of Section 89501 shall apply tc� the prohibitions in this
°�� section.
'„,°:
,;,�.
This section shall not limit�r prohibit payments,advances, or reimbursements for travei
and ►•elated lodging and subsistence authorized by Section 89506.
(8.1) Section 8.1. Prohrbition on Receipt ofGifts in Excess of'$420.
(A)No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept�itts�vith a total value of more than $420 in a calendar
year from any single so��rce, if the member or employee would be required to report the receipt
of income or gifts from that so�n�ce on his or her statement of'economic interests. This section
shall n�t apply to�ny part-time inember of the governing board af�any puhlic institution of
, higher education, unless the member is also an elected ofticial.
Exhibit A-7
81000-0172\1428464v1.doc
RESOI,U1'(ON NO. SA-RDA__OOb __�_
�ubdivisic�ns(e),(t1, and (4�)c�f tiection 89iO3 shall �����I�� to thc prohibitions in [his i
scctinn. '
(82) Sectic�n 8.2. I,o��ns 10 I'ublic Otlicials.
(l�)No elected oflicer c�f a state or loc�l governrnent a�ency shall. I'rom tl�e date of his�r
her election to offic� thr��ugh the �fate that he c�r She vacates c�l�(ice, re;ceive a personal loan f'roi�i
any utticer, cmployee, memher, or consulta��t of the state or lacal govcrnment agency in which
the elected of'ficer holds of'fice or over whicll the clected of'ticer's a�cncy has direciion and
control.
(I3} No public ofticial who is eYempt From the state civil service system pursuant to
subdivisions (c),(d), (e), (t), 1nd (g)of Section 4 of Article Vl I of the Constitution shall, while
he or she holds office, receive a personal loan Ti•om any officer, ernrloyee, member, OI'C011SLIIt817t
of the state or bc11 government agency in which the public otticial holds aftice or over which
�:.
�,�
the public ofticial's agency has direction and control."I"his subdivision shall not apply to loans ���
MF,:
made to a public official whose duties are solely secretarial, clerical,or manual.
(C)No elected officer of a state or local govermnei�t agency shall, from the date of his or
her election to office through the clate tl�at he or she vacates office, receive a personal loan From
any �erson who has a contract��vith the state or local government abency to which that elected
oFticer has been elected or over tivhich thal elected officer's age�icy has direction and control.
This subdivisian shall not apply to loans made by banks or other Financial institutions or to any
intlebtedness created as part ofa retail installment or credit card transactian, ifthe loan is made
or the indebiedness created in the (ender's re�ular course ofhusiness on terms available to
membecs of the public witho�it regard to the elected of'ticer's �Fficiai status.
,.;�°:;
Exhibit A-8
81000-0172\1428464v1.doc
� RLSOLU'CION NO. SA-RDA �06
*p�? (1)) No�uhlic c�fticial who is excmpt Fram the state civil scrvice system ��ursuant tu
subdivisions(cl.(cl). (e)- (I). ancl (,)ofScction�# of Arlicic VII c71�1he C'rnistitutinn sh�ll, whilc
hc ur shc holds oflicc, reccivc a ��crsonal loan fi•om any perscm ���hc� has a contract with thc slatc
c�r I�cal �overnment�►�enc}:t�� �vhich that electecl ofticer has Uecn elected or over�vhich lhal
elected officer's agency has ciireclion �u�d canU�ol, This subdivisian shall not apply to lo�uis m�de
by banks or other iinanci�l institutipns or Yo any indebtcdncss crcated as part of a eetail
installn�cnt or credit card trans<tction, if the loan is made or the incJebtedness created in the
Icnder's regular�course�f Liusiness cm te►•ms av�ilable to members oFthe�ub(ic without regard to
thc elected otfcer's ofticia( status, `I'his subdivision shall not apply to loans m�de to a public
official whose dutics are solely secretarial,clerical, or manual.
(E)'fhis section shall not apply to the 1'ollowing:
1. l,oans made to the campaign com�nittee of an electecl ofticer or candidate for elective
:�,>;�� oi�f ice,
�e,
2. Loans made by a public official's spouse,child, parent, grandparent,grandchild,
brother,sister, parentan-law, brother-in-law,sister-in-law,nephew, niece,aunt,unc[e, or tiist
cousin,or thc spouse of any such persons,provided that the person making the loan is not acting
as an agent or intennediary for any person not otherwise exemptetl under this section.
3. Loans from a person which, in the aggregate, do not exceed five hundred dol(ars
($�UO)at any given time.
4. t.oans made,or of�ered iti writing, before J�nuar�� I, I993.
(8.3)Section 8.3. I.oan '1'erms.
(A} Ctcept as set forth in subdivision (B}, no elected offrcer ofa state or loca(
bovernmenl agency sh�ill, ('r�m thc date ofhis or her election to ot'ticc;thl•ough the date he or she
';
Exhibit A-9
81000-0172\1428464v1.doc
i
RLSOLUTION NO. SA-RDA 006
vacates ol�fice. rcceive a personal loan of$500 or mc�rc,r�cept �vhcn thc Ic�an is in�vritin�and ''
clearly states the terms ol thc Ic,an. including the parties tv the luan a�reement,cJate uf the Ie�an.
amount of the loan. term ot�tht Ic�an, ciate or dates whcn �aymcnts shall be due on the loan and
the amount of the payments,and the rate of interest naid c�n thc Ic�an.
(1.3)This seetic�n sh�ll not ar��ly to the f��llowin�types c�f Ic�tins:
1. Loans m�cle to the clmpai�;n commillee of�the clected officer.
2. Loans i����de ta the clectcd of[icer by his nr her s4�ciuse,c{�ild, p�rent, �randplrent,
grandchild, brother, siscer, parent-in-law, brother-in-I�w, sister-in-law, nephew, niece, aunt,
uncle, or tirst cousin, or the spouse of any such person, provided that the person making the laan
is not acting as 1n ag�nt or inter►nediary for any pers��n not other�vise exe�r�pted tindei•this
section.
3. Loans made,or ofFered in writing, before January 1, 1998.
(C)Nothing in this section shall exempt any person ti•om a«y other provision of'[itJe 9 of' :�
'��;;
;�,u
the Government Code. }'�"
($.4) Section 5.4. Fersonal Loans.
(A)Except as set forth in subdivision(B), a personal loan received by any designated
employee shall becomc a gift to the designated employee for the purposes of this section in the
fol[owing circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of limitations f'nr
tiling an action for default has expired.
2. IF'the loan h�.s no detined date or dates for reraymcnt. when one year I�as ellpsed fi���m
the later of the following:
a. 't'he date the loan was macle.
Exhibit A-10
81000-0172\1428464v1.dot
RESOLU'I'ION NO. SA-RDA �06
. �<
�`���. b. 'I�he clate the latit pa�mc:nt of$I 00 or mc�re �v��s inacle an the I�an.
;�;,;,,
;;+,,�
c. "fhc date up�in which the eleblor has macic pa�ments e�n the loan aggregatin� tc� Iess
than�i25(?�luring the �rcvic�us 12 months.
(L3) 'I�his secticro shall neri a�ply to the followin�types of loans:
I. A I��an m�ide tc� thc c��mpaign committee. c�f an electeci officer or n c�iulidate for
eleclive olTice.
2. A luan that wc�ulci atheravise not be a �itt as defined in this tiCte.
3. A loan tllat would otherwise be a�ift as set forth under subdivision (A), but on �vhich
the creditor has taken reasonable action to co((ect the balance due.
4. A loan that would otherwise be t�gift as set forth unde�•subdivision (A), birt on which
the creditor, based on rc�soilaUle business conside�•ations, h�s not undertaken collection �ictic,i�.
Excepi in a criminal action,a creditor who claims that a loan is not a gift on the basis of this
,��r
,
x parngraph has the burden of proving that the decision f'oi•not taking collection action was based
�3�w
on reasonable husiness consideracions.
5.A loan made to a debtor who has tiled for bankruptcy and the loan is u(timately
discharged in bankruptcy.
(C)Nothing in ihis section shall exempt any person from any other provisions of Title 9,
of the Government Code.
(9) Section 9. Disqualification.
No designated employee shall make, participate in making,or in any way attempt to use
his or her otficial position to infhience the making aFany governmental decision �vl�ich he c�r she
knows or has ceason to kna�v�vil( have a reasonably f'oresee�ble mlteri�l financial effcct,
��:
�;;$
Exhibit A-11
81000-0172\1428464v1.doc
RESOLUTION NO. SA-RDA 0�� _
clistin�uishahlc li•om ils cflcr.t un thc public ��cncrallv. �,i7 Ihc<it'licial or t� mcmhcr c,f his ur ticr
_ +,,
immediate familV or on:
(i�)Any h�isiness entity in���hich thc desi��n,ited cm��lc��-ee has a direcl or in�lircct
invcstmcnl�vorth $2,001)or more;
(f_3) nny real ��r���aerty in which il�e desi�;nated e;mploYt� h��s a dirccl or indirect interest
worth �;2,OOU or more;
(Cj �ny source of income,other than gifts and other than loans by a cc�mmercial lending
instit�rti�n ii�ihe regular course ot'business on terms available to the public �vithout regard to
ofticiaf status,aggregating$�OU or more in value provided to, received by or proir�ised to the
designated employee within 12 months prior to the time when thc clecisiot� is rnade;
(D} Ai�y business entity in which the design��ted cmployee is a di��ector, ofticer, partner,
trustee, employee, or holds any position of management;or
(E) Any donor of,or�tny intertnediary or agent For a donor ot;a gift or gifts a�;gregating ,
���
$420 or more�rovided to,received by,or promised lo the designated employee within 12 =��`�'��
manths priur to the time evhen the decision is n�ade.
(93)Section 9.3. Lega)ly Required Participation.
No designated employee shall be prevented f'rom making or participating in the making
of any decision to��e e�ctent his or her particip�tian is let�all_y required for the decisron to be
made.`fhe fact that the vote ot a designated emploti�ee who is on a voting body is needed to brelk
a tie does not make his or her participation legally required (or purposes ofthis section.
(9.�)Section 9.5. Disc+ualification of State Of�ficers 1nd Employees.
In addition to the general disqualification provisions of section 9,no state administrative
official shaU make, p�►rticipate in mllcing, or use his or h�r oPficial position to influence an;�
���
�.'b.��v
Exhibit A-12
81000-0172\1428464vi.dac
RLSOLU'I'ION NO. SA-KUA ��6
yt�:' g��vcrnmcnial dee:isiun clirectly relating tc�an��cemU•tict �vhere the statc adminisU-ative ot'Iici��I
�,
kno�vs or has rcaticm tc� knc��v that any party tc� thc cc�ntract is a person tivith tvht�m the slatc
administralivc ol7icial, or any mcmbcr of�his or hrr immediate family has, within I� months
prior to the time tivhen the ofGcial action is tu hc tak�n:
(A) I�nga�;cei in a business transaction c�r transnctions on te►•ms not�v�ilable to i»cmbers
of thc public, I'C�?11'CII11E;any investment or inte��est in real praF�erty;or
��� �,I1�;tI�CC� IIl il �"1USIn�S5 1Cc�11SHCLln11 OC U'�lI1SaCt1C)f!S OII feI'1715 IIOl c1ValI�UIC l0 Illeil1Ll81'S
ot�the public re�arciing the rendering oFgoods or scrvices totaling in value$1,000 or rnore.
((0) Seccion 10. Disclosure of llisqualifying Interest.
When a desi�nated employee determines that he or she sh�uld not make a gc�vernmental
decision beca�isc he c�r she has a disqualifying interest in it,the deterinination not ro act m1y be
accompanied by disclosure of the disyualitiying inlerest.
;� (1 I) Section ] 1.Assistance of the Commissi�n and Counsel.
, .
�x�
Any designated employee who is unsure of his ar her duties under tllis code may request
assistance irom the F'air Political Practices Commission pursuai�t to Section $3114 ancl
Regulations 18329 and I 8329.5 or from the attorney for his or her agency, provided that nothing
in this section requires the attorney for the agency ta issue any Formal or informal opinion.
(12) Section 12. Violltions.
This code has the force and effect of law. Desi�n��ted employees violating any provision
of this code are subject to the administrative, crimina) and civil sanetions provided in the
Political ReForm /�ct, Sections S 1000-91014. In acidition, a decision in relation to �vhich a
viola#ian of the disqualitication provisions af this c�de or of Section 87100 or 8745U has
occurred m1y be set asicle as void pursulnt to Section 9100�.
� �
}k`
£;?iF.=
i?��
Exhibit A-13
81000-0172\1428464v1.doc
RLSOLUTION NO. SA-RDA ��6 __.
:;,,;;a��
�` I
�Uesignalc�l cmplo�ce;s�vho are rcquirecl lu lilc statcmenls ol�economic intcrrsts uncicr any other '
agencv s contlict-ol=interest code, or unda'articic? fi�r a dit�tcrent_jurisdiction, ►na��expand their
statcment ol�cconomi� interests to cover reportahle intcrests in hoth jurisclictitms,<uid tile copies
of this expandecl sCatement�vith both cntitieti in licu c�l�lilin�se��<irate ancl distinct st.atemaits,
providcd that cach ci���y oFs�ich exhandccl sti.1fG11C11[ IIICCI IIl �lI�1CB U� 111 OI'I�!1117I IS SI�?I1C'.(� 117fI
vei�itied hv th�dc5ignated cmrloyee as if it wcre 41f1 (ll'If�lll£lI. �it:C; �EC[Infl R I IIn�I.
`Sec Scctinn 8 IO IO and Regu(ation I 81 I S tiii�the duties of tiling offiicers�nd persons in agencies
who make:and retain copies of staternents and f'orward thc ori�inals to the f iling officer.
'For the p�n•pose of'disclosure only(not disqualification),an interest in real prc�perry does not
include the principal residence of tlte filer.
'�lnvestments and interests in real property which h�ve� fair markel value uf less than �2,Oq0 are
not inveslments ancl interests in real property within the meaning of the Political Reform Act.
;>:
ktowever, investments or interests in real property of an individual include those held by the a
indiviclu�zl's spouse and dependent children as �vel I as a pro rata share of any investment or
interest in real property of any business entity or trt�sk in which the individual, spouse and
dependcnt children own, in the agaregate,a direct, indirect or beneficial interest of�10 percent or
greatei•.
'�designated crnployee's income includes his on c�r community property interest in the income
of his or her spouse but does not include salary or reimb�irsement for expe��ses received from a
state, local �r ('ederal �avernment agency,
bincome of� business entiry is rep�rtable if the direc.t. inclirect or benet7cial interest of the filer
and the tiler's sE�ouse in the business entity aggregates�i 10 percent or greater interesl, In
,�:
.t;��.:�:
`,`'.�
Exhibit A-14
81000-017 Z\1428464v1.doc
RL'SOLU'1'ION NO. SA-RDA ��6
�fi acldiliun. Ihr cliscic�surc iif rci:ticros�vhc�arc cliciils��r customcrs cif a husincss entit� is rcyuirecl
��
',`��'':;
c�nlv if�hc clients cx custt�mcrs arc �vithin onc e�t�the cliscic►sure catego►'ies cil�thc filer.
Note: Aulhi�ritv cited: Seetion 8 i 1 12, (�overnir�ent Code. Reterence: Sections 87103(e), 87300-
873t)2, B�J�U I,89502 and 89iO3, t�overnmcnt Code.
HIS"I'C)fZY
I. Nc�v scction liled ��-Z-KU 1S illl(;I)1�I'�CI7Cy; eftcetive upoi� filing(Register f;0, No, f4).
Certiticatc uf C'ompliance included.
2. Editori�l carrection (Itegister $0, No. 29),
3. Amenclment oFsuUsection (b) (iled 1-9-$1; eFfective thirtieth day therealter(Register 81,
No. 2).
4. Amendment of subsection (b)(7)([3)1. tiled 1-26_83; effective thirtieth day thereafter(Re�ister
83, Na. S),
x��. 5. nmendment ot'subsection (b)(7)(A) f71ed I 1-10-83; effective thirtieth day thereafler(Register
;��� 83,No. 4G}.
6.Amcndment t71ed 4-13-87;operative 5-13-87(Register 87,No. 16).
7.Amendment oFsEibsection(b)filed ]0-21-88;operative l 1-20-88(Register 88, No. 46).
8.Amendment of subsections(b)(8)(A)a�id(b)(8)(B)and numerous editoriat changes filed
8-28-90;operative 9-27-90(Reg.9Q,No.42),
9.Amendment of subsections(b)(3),(b)(8)and renumbering of Following subsections and
amendment of Note tiled 8-7-92;operative 9-7-9? (Register 92,No.32).
10.Ame�idinent of sobsection (b)(5.5)and netiv subsections(b)(5.5)(A)-(,4)(2) tiled 2-�t-93;
operative?-�F-93 (Re�;ister 93,No.6).
�-
,y;
,<,;'
Exhibit A-15 �
81000-0172\1428464v1.dot �
K1:SQLU`I'ION NO. SA-RDA ��n
I I.('han��c wi�liuut rcgulatory cl�fccl ad����lin��Cc�nflict of Intcrest C'c�de I��r t'alili+rnia Mcnlal T'�
��q�
I Icalth I'I,initin�±('c�iu�cil filed I I-22-93 ��ursuant to title (,sectior� 111U.Cali�i�rnia Codc of
Itc�ula�i<�n�;(Rcgistcr 93,No.�E8'►. Apnrovcd by Pair I'olitice�l Pracliccs Cammission 9-21-93.
12. C'hangc without regulatory effect redesignadng Conllict of Intcrest C�dc For California �
Mcntal !Icalth Plt�nning Cc�unci! �lS Cll�l}�I�C GZ. SC'CI1011 JJ IOO{"IICCI I-�-t)/� �lUl'Sl.lilllk 10 flflf; I, I
section 10O,California Code of ftegulations(Register 94,No. 1).
13. t�:ditc�ri<il crn�rcction�dding Hist�ry I ( and 12 and deleting duplicate secticm numUer
(Registcr 94,Na. I 7).
I 4. Amendment of subsection(b)(8),designation of subsection(b)(S}(A), new subsection
(b)(8)(I3), and an�endmenl ofsubsections(b)(8.1)-(b)(8.1)(B),(b)(9)(6)and Note filed 3-14-95;
operative 3-1�4-95 pursuant to Government Code section I 1343.4{d)(Register 95,No. l 1).
1 S. Editorial correction inserting inadvertently omitted language in iooti}ote 4 (Register 96.
No. 13).
l 6. Amendment of subsections(b)(8)(A)-(B)and (h)(8.1)(A),repealer of subsection(b)(8.1)(B), ��`��
and amendme�jt af subsection(b)(I 2) fi fed 10-23-96;operative 10-23-96 pursuant to
Government Code section I 1343.4(d)(Register 96, No.4�).
17.Amenclment of subsections(b)(8.1)and(9){E}filed 4-9-97;operative�4-9-97 pursuant to
Government Code section t 1343.4(d)(Register 97,No. I S).
18. Amendment of subsections(b)(7)(BjS.,new subsections(b)(8.2)-(b)(8.4)(Cj and amendmettt
of Note filcd 8-24-9$:operative 8-24-9R pursuant to Government Code section 1 13�43.4(d)
(Regisfer 9$, No. 35).
19. Hditorial correction of subsection(a)(Register 98,No.47).
20.Amei�dmcnt ot�sunsections(b}(8.1},(b)(S.I)(A}and(b)(9)(E)filecl�-1 t-99;c��ter�►tive
E�ibit A-16
81000-017 2\1428464v 1.doc
' RESOLU I"lON NO. SA-RDA �06
n�; >-I I-�)�1�,ursuant to Govcrnmcnt C'cxlc scrticin I 13d3.�(d)(f2egister 99, No. ?(1).
��.
21. flmcnclmcnt oFsubscctions (b)(8.I}-(h)(8.I)(n)and (b)(9)(�;) lilcd 12-fi-7_000;o��crative 1-I-
2O01 nursuant to the 1974 versicm of(�ov�rnment Cocle section I I_i8O.2 �ind 'I'itle 2, Caliti�rnia
COCIC O� IZCaUIaIlOI1S, section I$312(d)�ind (c)(Rc�istcr 2Q(1O, N�. 4�1).
?2. Amenclment o['subse;clions (h)(.3) and (h)(10} (ilccl 1-lO-2U01: c�perative. 2-I-2f1U1.
Submitted to OAL tbr liling pursu<int tc� H'cri�•1'nli�icu!Pr�rc�ice,s ('�»ilnti,��,s%OJl lr. Of�ICC'of'
,4rinrirrr,rli•�r�ri�e I,a1v, 3 Civil C'Olb�)24, Califi�rni�C:'otirt ofAppeal, 'I'hird Appellate District,
nonpublished decision, Apri127, i9y2 (FI���(; re�u�ations only sul�ject to 197�t �ldministrative
Aroced�ire �1ct rulemaking reyuirement:s) (Register 2001, No. 2).
23. flmenclmcnt ofsubsecfions(b)(7}(A)4., (b}(7)(t3)l.-2., (b)(8.2)(E)3., (b)(9}(A)-(C) and
footr�ote 4. tiled 2-13-2001. Submitted to OAI, fnr fi(ing pursuant to Fc�rr Pc�lilical Prrrclices
Co»��r�r.c.��ion 1,. Off'ice of'Adinirais�r�utivc�I.arv, 3 Civil COIU92�1,Calitomia Court of'Appeai,Third
:��� AE�pellate Uistrict, nonrublishcd decision,April 27, 1992 (FPPC regulations only subject to 1974
���
�ldministrative Procedure Act rulemaking requirements)(Register 2001, No. 7).
24. Amendment oFsubsections(b)(8.1)-(b)(8.l}(A) filed 1-16-2003;operative I-1-2003.
Submitted to OAL for filing pursuant to F'air Political Practrces Cnrru�rissior�il. Offrce of
AL7�i)11Yf%Sl)�crlrveLaw,3 Civil C010924,California Cou�rt ofAppeal,Third Ap�ellate District,
nonpi�b�is��ed decision,Apri(27, 1992 (FPPC regulations only subject to 1974 Administrative
Procedure Act rulemaking requirements)(Register 2003,No. 3).
2�. Editorill c�►•rection of History 24 (Register 2003, No. 12).
26. P.ditorial carrection removing ertraneous phrase in subsection(b)(9.i)(B) (Register�004,
No. 3�).
�'..
E�ibit A-17
81000-0172\1428464v1.doc
RL'SOLU'I'lON NO. SA-RDA OU6
?7. Amcnclmcnt ol�subscctiuns(hl(')-(�), (b)(3)((.�),(bl(6)(C�1. �n��x.i�-�n>c;�.i��n}. (h)(�))(1:)and ��`�
J�,
,��.
(h)(I I)-(12) lile� 1-4-2ODi: e��cra�ive I-I-200i rursu�int lo(;c�vcrnment C'�de section i 13�1;.�I
(fte�;ister 2005. No. 1).
�8. /�mendment of subseclion (U)(7j(A)�. tiled 10-11-200�;o�crative i I-10-200� (Register
?OOj, No. �t I).
29. i\mendmcnt of suUsections(a), (b)(�), (b)(3), (b)($.I). (b)($.I)(t�+) and ('b}(9)(L) filed �
I?-I8-3Q06; operativc I-I-2007. Siil�mitted to OnL put�suant lo F'CIl1'POI/IICCJI Pl"L7C1lCE,s
C'nn�mis,sinn��. (�f�ce Uf AC�177%!T(,Sll'C!(ll�t C,utii�, 3 Civil COIU924,CaliforniZ Court ofAp�eal,Third
Appellate �)istrict, nc�npublished dccision, April 27, 1942(PPPC regulakians only subject to 1974
Aclministrative Proced��re Act rulemaking requirements)(Register 2006, No. 51),
3U. Amenclment of subsections(b)(8.1)-(b)(8.])(A)and (b)(9)(f:) filed 10-31-2008;operltive 11-
30-2008. Submitted to OAL for iiling pursuant to Fair 1'�Iilical.Practice.s C�mrni,ssrr»�v. Office
of�rlCI1111111Stratii�e Lc�ti��, 3 Civil C01O9�4, California Court of tlppeal,Third Appellate District, ;�.�,
' �y 4
.a..
nonpublished decision,t�pri(27, 1492(FPPC regulations anly subject to '1974 Administrative `'{`
F'rocedure Act rulemaking req�iirements and not subject to procedural or substantive review by
OAL)(Register 2U08, No. 44).
3(. Amenclment ofsection heading and section filed ]1-15-2010;operative 12-IS-2010.
Submitted ta OAL fior filing pursu�nt to Fnir•Politicul Praclices C'vrnn�is.rrvrr v. Qf�fce of
�Ichrrirzi,�•�ralive Lcnv, 3 Civil C01092�{. Calitornia Court of Appeal,'I'hird Appellate District,
n�npublished decision,April 27, 1992(FPPC regulations anly subjeet to 1974 Adtninistrative
Procedure nct riilemaking requircments�nd not subject to procedural or sui�stnntive review by
OAL)(Register 2010, No.47).
�,W
' .:;':.r.!.
Exhibit A-18
si000-ov2\iazsa6avi.doc
R�SOLUTION NO. SA-RDA U06
„';��
APPCNDiX�
DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES
FOR THE SUCCESSOR AGENCY TO THE PALM DESERT
REDCVELOPM�NT AGCNCY
Designated Positions Disclosure Cate�ories
Agency Board Member 1
Executive Director 1
Agency Secretary 2
Agency General Counsel l
Agency Assistant General Counsel 3 4 5 6
, , �
Assistant City Manager � 2
Finance Officer l
Directoi•of Community Development 2
� Director of Housing 2
Director of Public Worlts 2
Other Consultant(s) 7
Oversight Board Member g
�
Appendix A-1
81000-0172\1428464v1.doc
, RLSOLU'1'ION NO. SA-RDA p�6 _
Disclosure Cate�;ories
� �
,,�;a
1. Aersons holding designated positions which are assigned a disclosure category of"1" ,,,Y,,
above are not required to report under this Conflict of Interest Code because they hold
positions within the City of Palrn Desert,which are required to report pursuant to
California Government Code Section $7200. Persons in this category "1" are,
however, suhject to the disqualification provisions af this Code when acting in their
official capacity for the Successor Agency to the Palm Desert Redevelopment
Agency. ,
2. Persons holding designated positions which are assigned a disclosure category of"2"
above are not required to prepaxe a Statement of Economic Interest(Form 700) for
their position with the Agency because they also hold positions whicli are already
required to disclose and report under the Conflict of Interest Code of the City of
Palm Desert. Persons in this category "2" are,howaver, subject to the
disqualification provisions of tliis Code when acting in their official capacity for the
Successor Agency to the Palm Desert Redevelopment Agency.
3. Reportable interests in real property in the jurisdiction. (Form 700, Schedule B.)
4. Reportable incoine and business positions. (Form 700, Schedule C).
5. Reportable investinents. (Form 700, Schedules A-1 and A-2).
�,�
�:;
k:
6. Reportable�fts and travel gifts. (Forrn 700, Schedules D and E). °"��
7. For consultants who serve in a staff capacity with the Agency,�he consultant sha11
disclose based on the disclosure categories assigned elsewhere in this Code for that
staff position.
The following disclosure categories shall be used for consultants who do not serve in a
staff capacity:
Persons required to disclose in this category shall disclose pursuant to categories 3,4,
5 and 6 above unless the Executive Director determines in writing that a particular
consultant is hired to perform a range of duties that is limited in scope and thus is not
required to fully comply with the disclosure requirements in categories 3,4, 5 and 6.
Such written determination shall include a description of the consultant's duties and,
based upon that description, a statement of the extent of disclosure requirements. The
Executive Director's detertnination is a public record and shall be retained for pubtic
inspection in the same manner and location as this Code.
8. Oversight Board Members who serve in a position of the City of Palm Desert and
who are already required to report financial interests pursuant to the broadest
disclosure categories under the City's Conflict of Interest Code axe not required to
prepare a Statement of Economic Interest(Form 700) for their position with the '�'
Appendix A-2
81000-0172\1428464v1.doc
RESOLUTION NO. SA-RDA 006
Agency. Persons in this category "8" are,however, subject to the disqualification
provisions of this Code when acting in their official capacity for the Successor
Agency to the Palm Desert Redevelopment Agency.
Oversight Board Members who do not serve in another position with the City or who
serve in position with the City that is not required to disclose pursuant to the hroadest
disclosure categories under the City's Gonflict of Interest Code shall disclose
pursuant to categories 3, 4, S and 6 above.
�
,r:
Appendix A-3
81000-0172\1428464v1.doc
r .
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE THE ADMINlSTRATIVE BUDGETS FOR THE
PERIODS OF JANUARY 31, 2012 THR�UGH JUNE 30, 2012,
AND JU�Y 1, 2012 THROUGH DECEMBER 31, 2012
SUBMITTED BY: Janet M. Moore, Director of Housing
DATE: March 22, 2012
CONTENTS: Administrative Budgets (1/1/12— 6/30/?2) & (7/1/92-92/31/12)
Recommendation
By Minute Motion that the Successor Agency Board:
1) Approve the administ�ative budgets as required under AB 1 X 26 for the
periods January 1, 2012 through June 3�, 2012 and July 1, 2012 through
December 31, 2012; and
2) Authorize staff to forward to the Oversight Board for approval.
Backs�round
Pursuant to Health and Safety Code Section 34177, the Successor Agency is required
to prepare an administrative budget for each six month period and submit to the
Oversight Board for approval. The administrative budget includes operating costs such
as auditing, legal services, trustee services, personnel costs, meeting costs and costs
attributable to the wind-down of the redevelopment agency that would not have
otherwise been incurred. The amaunts are listed on the Recognized Obliga#ion
Payment Schedule (ROPS) and have either been approved by the former
redevelopment agency as part of its operating budgets or will be approved as part of the
second ROPS which covers the period of July 1, 2012 through December 31, 2012.
The second ROPS (ROPS2} is being recommended for approval by the Successor
Agency in a separate action.
Attached are the required administrative cost budgets for both the periods of January 1,
2012 through June 30, 2012 and July 1, 2012 through December 31, 2012. Because
the Oversight Board just recently had enough members for a quorum and their first
meeting was March 14, 2012, this is the first opportunity for the administrative budgets
to be presented although they are for both the current and forward looking six month
periods. The budgets show the estimated cost allowance for the respective periods
>
Staff Report
Approving the Administrative Budget
March 22, 2012
Page 2 of 2
based on AB 1 X 26, however, the actual amount will depend on the amount of property
tax allocated to the Successor Agency for each fiscal year and availability of funds after
all other obligations are met.
Staff recommends that the Successor Agency Board autharize staff to submit the
administrative budgets to the Oversight Board for approval.
Fiscal Analvsis
The administrative budgets are in furtherance of allowing the Successor Agency to pay
administrative abligations of the former redevelopment agency.
Submitted by: Department Head:
,
��, ��� `
Jan M. Moore, Director of Housing J ti McCarthy, Assistant ' Manager
ApprovaL
����� �� Succ��y-��ency
�
Paul S. Gibson, Director of Finance ' ����6 5`C
�:�� n?���.����ol �
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. .. -�:���.� ..��r-_ Rt�i�,/n,��_-
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J M. Wohlmuth, Executive Director
Approved*
BY OVERSIGHT BOARD (Reyes ABSENT)
ON 04-09-2012
VERIFIED BY �K
Original on file with City Clerk's OE�ice
*With the understanding that the reimbursement for Administrative Costs included
therein from the Administrative Costs Allowance shall not exceed the legal limit
for the Administrative Costs 911owance and that the remainder must be paid from
other funding sources.
0!ida�Pacry Leon'�1MA4�sta[f rcport�Admiu hudga 3-22•12.doc
Successar Agency to the
Palm Desert Redevelopment Agency
January 1,2012 through December 31,2012
BASED ON FIRST HAIF APPORTIONMENT RECEIVED Jan 1 •Jun 30,2012 Jul 1 -Dec 31,2012
Estimated @ 5% Estimated @ 3%
Administrative Cost Ailowance 1,118,807 671,284
RDA Adopted Budget SA,,B�dgef SA Budget Source of
ADMINISTRATIVE COSTS Jan 1 -Jun 30,2012 Jan 1 -Jun 30,2012 Jul 1 -Dec 31,2012 Payment
Auditing Services 7,500 7,500 7,500 E
Bank Fees 13,639 13,639 13,639 E
Consuiting Services 127,111 127,11t 25,861 E
Legal Services 126,500 63,145 106,500 E
Meeting Costs 2,750 2,750. 1,750 D,E
Office Expenditures 74,35d 74,350 13,415 D,E
Personnel Expenditures 1,408,655 1,074,263 922,198 D,E
TraininglEducation 10,500 10,500 3,000 D,E
Travei Expenditures 1,775 , 1,775 625 D,E
Total Administrative Costs 1,765,280 �l 375,033 1,094,488
b-Administrafiva Allowance,E-Redevelopment Propedy Tax Trust Fund
Costs related to items identified by"E"may be considered part of the administrative cost Allowance depending on interpretation of
A61 X26 by the Department of Finance.
Due to the enactment of AB1 X26,a portion of these costs are attributable to the wind-down of the redevelopment agency and would not
have otherwise been incurred. These costs,therefore may be consdiered part of the administrative cost allowance;however,the
legislabon is silent on this issue.
3/1312012
Admin Budget 1Q:24 AM
THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE THE REPAYMENT SCHEDULE TO THE PALM
DESERT HOUSING AUTHORITY FOR THE OUTSTANDING
LOAN FROM THE LOW AND MODERATE INCOME HpUSING
FUND FOR THE 2009-10 SUPPLEMENTAL EDUCATIONAL
REVENUE AUGMENTATION FUND (SERAF) PAYMENT
SUBMiTTED BY: Janet M. Moore, Director of Housing"���$II�VERSIGH'T I30ARL�
ON_ D�— p� �� ����
DATE: March 22, 2012 VEg,IFIED BY ��
i er s Of�ice
Recommendation
By Minute Motion, that the board approves the repayment schedule to the
Palm Desert Housing Authority for the loan from the low and moderate
income housing fund for the 2009-201d SERAF payment.
Executive Summary
In the 2009-10 fiscal year the Palm Desert Redevelopment Agency ("Agency") was allowed
to suspend its annual deposit to the Low and Moderate Income Housing Fund ("LMIHF"
also known as 20% set-aside) in order to offset the costs of the Agency's portion of the
2009-10 shift to Supplemental Education Revenue Augmentation Fund ("SERAF"). The
suspension was considered a loan from the LMIHF and was required to be repaid by the
Agency by June 3Q, 2015. On February 9, 2012 the City Council designated the Palm
Desert Housing Authority ("Authority") as the successor housing agency. The recently
enacted legislation related to the elimination of redevelopment agencies provides that this
loan is an enfarceable obligation provided the Oversight Board approves the repayment
schedule. This loan is listed on the Recagnized Obligation Payment Schedule ("ROPS") as
an obligation of the former redevelopment agency.
Backqround
In 2009 the Governor declared a fiscal emergency and signed legislation that required
redevelopment agencies across the State of California to shift $2.05 billion in property tax
increment revenues to SERAF for K-12 schools and community calleges during the 2009-10
and 2010-11 fiscal years. In 2009-10 the Redevelopment Agency was required to pay
$25,526,215 to SERAF for its portion of the shift.
In order for redevelopment agencies to make such large payments, there was specific
language in the legislation that allowed the agencies to suspend the 2009-10 deposit to the
LMIHF for the purpose of paying the SERAF payment, The suspension was considered a
G:1rda\Patty leonlJMM\staff roport\Staff Report-SERAF Repayment 3-22-12.doc
Staff Report
Approval of SERAF Repayment
Page 2 of 2
March 22, 2012
`loan' that was required to be repaid by June 30, 2015. Of the $25 million paid, the Agency
borrowed $17,821,288.59 from the annual deposit to the LMIHF in 2009/10.
As part of the 2011-2012 State budget, the Governor signed legislation that effectively
eliminated redevelopment agencies ("AB1X 26"). The constitutionality of that legislation
was upheld by the State Supreme Court and redevelopment agencies were eliminated as of
February 1, 2012. As part of AB1X 26, certain activities were prahibited and that prohibition
was retroactive to January 1, 2011. Because af this, the Agency did not make any
payments on the loan to the LMIHF during that time. AB1X 26 states that loans to or from
the LMIHF that had been deferred as of the effective date of the legislation requires that the
Oversight Board approve the repayment schedule (Health and Safety Code Section
34171(d)(1)(G}).
The repayment schedule below provides for repayment of that loan with four equal
payments in the amount of$4,455,322.15 to be paid over the next four years.
SERAF Repayment Schedule
Payment Due Balance
6l30/2010 17,821,288.59
6/30/2012 4,455,322.15 13,365,966.44
6/34l2013 4,455,322.15 8,910,644.29
6/3012014 4,455,322.15 4,455,322.14
6/30/2015 4,455,322.14 0.00
17,821,288.59
In order to meet the repayment deadline of June 30, 2015, staff recommends that the
Successor Agency Board and the Oversight Board approve the above repayment schedule.
Fiscal Analvsis
There is no affect to the City's General Fund due to this repayment schedule. The
payments will go to the Housing Authority to offset the costs of providing afFordable housing
to restricted income households.
Submitted by: D partmen Hea :
---�` -t-��` ' -� .
�
an Moore, Director of Housing usti McCarthy, Assistant Ci anager
App CC�SSGY ��7Cc�
Pau S. Gib on, Dir tor f F' ance r�L , ���A �_�
n M. Wohlmuth, Ex ' e Director �����y��� �Dl�
4���i�l�:J �''f._j��� /}7l'
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G1rdaWa y LeonWMMlstsfl reportlSlaft ort-SE Repayment 3-22-12.doc �J
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SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. SA-RDA o04 APPROVING A DRAFT
INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177
FOR THE PER14D JANUARY 1, 2012 THROUGH JUNE 30, 2012
AND A DRAFT FOR THE PERIOD OF JULY 1, 2012 THROUGH
DECEMBER 31, 2012 �,r,� ��c-�-r�
��L'-�.—. BY VE SIGHT BOARp
�N � — f�� �1��
SUBMITTED BY: Janet M. Moore, Director of Housing
�RIFIED BY
DATE: February 23, 2012 � wpclgina( on file with City Clerk's O�ice
C�NTENTS: Resotution No. SA-RDA ooa
Draft Initial Recognized Obligation Payment Schedule (ROPS)
Recommendation
By Minute Motion: waive further reading and adopt Resolution No. SA-
RDA o04 , adopting a draft Initial Recognized Obligation Payment
Schedule (ROPS) for the period January 1, 2012 through June 30, 2012.
Executive Summary
Pursuant to Health and Safety Code Section 34177, in order to make payments on
enforceable obligations, successor agencies are required to adopt a draft initial
Recognized Obligation Payment Schedule by March 1, 2012. The schedule must also be
approved by the oversight board, certified by the County Auditor as to its accuracy, and
finally, submitted to the State Controller as well as the State Department of Finance.
Backqround
Health and Safety Code Section 34177(I), as modified by the California Supreme Court,
provides that by March 1, 2012, the Successor Agency must prepare a draft initial
Recognized Obligation Payment Schedule far the enforceable obligations of the former
Redevelopment Agency, in accordance with the requirements of paragraph (I). The draft
schedule must be reviewed and certified, as to its accuracy, by an external auditor
designated at the county auditor-controller's direction pursuant to Health and Safety Code
Section 34182.
The Recognized Obligation Payment Schedule must be submitted to and approved by the
oversight board. Finally, after approval by the oversight board, a copy of the approved
��'R nl t�C7 -4�c 1v�-�- i
C7'v�i(�.s'�G.�i 3o1�f25� �`�'-•
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� Staff Report
Resolution SA-RDA o04 Adopting the initial Recognized Obligation Payment Schedule
February 23, 2012
Page 2 of 2
Recognized Obligation Payment Schedule must be certi�ed by the county auditor-
controNer, submitted to the State Controller and the State Department of Finance ("DOF"),
and be posted on the Successor Agency's web site. The first Recognized Obligation
Payment Schedule submitted to the State Controller and the DOF will be for payments for
the period of January 1, 2012 to June 30, 2012, inclusive.
Staff recommends that the Board of Directors of the Successor Agency to the Palm Desert
Redevelopment Agency adopt Resolution No. SA-RDA o04 , approving the draft
initial Recognlzed Obligation Payment Schedule.
Fiscal Analvsis
The draft initial Recognized Obligation Payment Schedule is in furtherance of allowing the
Successor Agency to pay enforceable obligations of the former redevelopment agency.
Submitted by: Department Head:
� -
;
�
Ja et . Moore, Director of Housing stin McCarthy, Assista 't Manager
Approval:
�,,�p��. �,��� � , I�cnc��
Paul S. i on, ' or of Finance
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~~ i_���f.��r!::{ Ci,� 1CI;: fi��'1: ��;.t�/ C.�1t:i�fC�`7 Vill�
dhn M. Wohlmuth, Executive Director
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RESOLUTION NO. SA - RDA o04
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOFt AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING A DRAFT INITIAL RECOGNIZED OBLIGATION
PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34177 AND TAKING CERTAIN ACTIONS IN CONNECTION
THEREWITH
RECITALS:
A. AB X1 26 and AB X1 27 were signed by the Governor of California on
June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety
Code) (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").
B. The California Redevelopment Association and League of California Cities
filed a lawsuit in the Supreme Court of Catifornia (California Redeve/opment
Association, et al, v. Matosantos, ef al. (Case No. S194861)) alleging that AB X1 26 and
AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its
opinion in fihe Matosantos case largely upholding AB X1 26, invalidating AB X1 27, and
a holding that AB X1 26 may be severed from AB X1 27 and enforced independently.
C. The Supreme Court generally revised the effective dates and deadlines for
pertormance of obligations in Part 1.85 arising before May 1, 2012, to take effect four
months later.
D. As a result of the Supreme Court's decision, the Palm Desert
Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the
City of Palm Desert (the "City"), created pursuant to the Redevelopment Law, was
dissolved pursuant to Part 1.85 on February 1, 2012.
E. By its Resolution No. 2011-76, adopted on August 25, 2011, the City
Council of the City made an election to serve as the successor agency for the
Redevelopment Agency under Part 1.85 (the 'Successor Agenc�').
F. By its Resolution No. 001, adopted on February 9, 2012, the City Council,
acting as the gvveming board for the Successor Agency, established rules and
regulations applicable to the governance and operation of the Successor Agency, and
pursuant to such resolution provided that the Successor Agency will be governed by a
Board of Directors (the "Board") consisting of the members of the City Council of the
City.
f:•rd�Vwneirn Taein�.WnrA Ftl'dCf�fFRnnn.f.�Cnrrr.�nr aomry mmintinn n�mma,inu Rf1PC 9.J7.1�fl(K`X
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RESOLUTIOPI NO. SA-RD ��� -
G. Health and Safety Code Section 341e Su�ccesso�Af1ency mt st pre�parela
Supreme Court, provides that by March 1, 2012, th 9
draft initial Recognized Obligation Payment Schedule for the enforceable obligations of
the former Redevelopment Agency, in accordance with the requirements of paragraph
(I). The draft schedule must be reviewed and certified, as to its accuracy, by an external
auditor designated �t the caunty auditor-controller's direction pursuant to Health and
Safety Code Section 34182. The certified Recognized Obligation Payment Schedule
must be submitted to and approved by the oversight board. Finally, after approval by
the oversight board, a copy of the approved Recognized Obligation Payment Schedule
must be submitted to the county auditor-controller, the State Controller and the State
Department of Finance ("DOF"), aadmenp Scheduletsubmutted torthe State Co troller
The first Recognized Obligation P y
and the DOF will be for payments for the period of January 1, 2012 to June 30, 2012,
inclusive.
H. Accordingly, the Board desires to adopt this Resolution approving a draft
initial Recognized Obligation Payment Schedule in accordance with Paragraph G.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE PALM DESERORDERS AS OLLOWSGENCY, HEREBY FINDS,
DETERMINES, RESOLVES, AND
Section 1. The above recitals are true and correct and are a substantive part �
of this Resolution. `
Section 2. This Resolution is adopted pursuant to Health and Safety Code
Section 34177.
Section 3. The Board hereby approves the draft initial Recognized Obligation
Payment Schedule substantially in the form attached as Exhibit A to this Resolution and
incorporated herein by reference (the "ROPS"). The Executive Director of the
Successor Agency, in consultation with the Successor Agency's legal counsel� may
modify the ROPS as the Executive Director or the Successor Agency's legal counsel
deems necessary Qr advisable.
Section 4. The Board hereby designates Paul Gibson as the official to whom
the DOF inay make requests for review in connection with the ROPS and who shall
provide the DOF with the telephone number and e-mail contact information for the
purpose of communicating with the DOF.
�
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,
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� RESOLUTION NO. SA-RD`.. oo�� �._
Section 5. The officers and staff of the Successor Agency are hereby
authorized and directed, jointiy and severally, to do any and all things which they may
deem necessary or advisable to effectuate this Resolution, including submitting the
certified Recognized Obligation Payment Schedule to the oversight board for approval,
and any such actions previously taken by such officers are hereby ratified and
confirmed,
PASSED, APPROVED AND ADOPTED this 23rd day of February, 2012.
AYES: BEN50N, FINERTY, AARNIR, KROONLN, and SPEI6EL
NOEs: No�
ABSENT: rrorrE
ABSTAIN: xor�
� � f /
Robert A.�Spiegel, C ir�an "
ATTEST:
l
R helle D. Klassen, S cretary
SIICCESSOR AGENCY TO THE pALlri DESERT
REDEVELOPI�NT AGENG'Y
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EXHIBIT A i '�
DRAFT INITtAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE
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Exhibit A
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TOTAL THRU
COLOR CATEGORY
JUNE 30, 2012
Bonds 32,042,205.76
Judgments/Settlements 4,715,133.84
Loans 2,318,209.35
Projects - Current 5,534,302.28
Projects - Planned 0.00
Contracts 212,848.16
Other/Admin 63,211,840.50
Affordable Housing 2,530,168.55
Total ROPS Obligations $ 110,564,708.44
Total Other Obligations $ 41,047,364.20
Grand Total - All Obligations 151,612,072.64
Sources of Payment
A Low/Mod Income Housing Fund
B Bond Proceeds
C Reserve Balances
D Administrative Allowance
E Redevelopment Property Tax Trust Fund
F Other Revenue Source
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