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Home My WebLink About06/04/2012 POSTED AGENDA REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MONDAY, JUNE 4, 2012 — 1:30 P.M. ADM/N/STRATIVE CONFERENCE ROOM- PALM DESERT CIVIC 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),all 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 Board 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 shall not be effective until approved by the Depa�tment. 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 until approved by the Department. Reports and documents re/ating to each of the following items listed on the agenda, including those received following posting/distribution, are on file in the Office of the Secretary to the Successor Agency to the Palm Desert Redevelopment Agency/Palm Desert City Clerk and are available for public inspection 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, Palm 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 II1. 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. � POSTED AGENDA JUNE 4, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCE�SOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY IV. APPROVAL OF MINUTES A. MINUTES of the May 7, 2012, Regular 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 the Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meetings of April 26 and May 10, 2012. Action: B. DEPARTMENT OF FINANCE LETTER TO PALM DESERT REGARDING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) — ROPS1 AND ROPS2. Rec: Receive and file. Action: C. REQUEST FOR AUTHORIZATION TO TRANSFER THE RETENTION BASIN LOCATED ON KANSAS STREET (APN 637-033-001) TO THE CITY OF PALM DESERT. Rec: 1) Authorize transfer of the retention basin Iocated on Kansas Street (APN 637-033-001) to the City of Palm Desert under Health and Safety Code Section 34181(a). 2) Authorize the Executive Director and/or Chair of the Successor Agency to execute any documents necessary to facilitate transfer of the property. Action: 2 ' POSTED AGENDA JUNE 4, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY D. REQUEST FOR AUTHORIZATION TO SELL FURNITURE, FIXTURES, AND EQUIPMENT ASSETS OF THE FORMER PALM DESERT REDEVELOPMENT AGENCY AT THEIR BOOK VALUE TO THE CITY OF PALM DESERT. Rec: Authorize sale of the Agency's share of the listed furniture, fixtures, and equipment to the City of Palm Desert for the current book value of � $13,656.63. Action: E. REQUEST FOR AUTHORIZATION FOR SUCCESSOR AGENCY EXECUTIVE DIRECTOR TO EXECUTE CONTRACTS UNDER $5,000 FOR ROUTINE MAINTENANCE AND EMERGENCY MAINTENANCE SERVICES FOR AGENCY PROPERTIES PER OBLIGATIONS LISTED ON THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS). Rec: Authorize the Successor Agency Executive Director to execute contracts under $5,000 for routine maintenance and emergency maintenance services for Agency properties per obligations listed on the ROPS. Action: F. CONSIDERATION OF OVERSIGHT BOARD JULY,AUGUST,AND SEPTEMBER 2012 MEETING SCHEDULE. Rec: Discussion to occur at the meeting about the schedule of regular meetings on July 2, August 6, and September 3, 2012, and potential alternative schedule for same. Action: VI. CONTINUED BUSINESS None VII. OLD BUSINESS None 3 POSTED AGENDA JUNE 4, 2012 • REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 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 for the 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 thi 30th day f May, 2012. Ra elle D. Klassen, Sec etary of the Successor Agency to the Palm Desert Redevelopment Agency 4 D R A F T PRELIMINARY MINUTES D R A F T REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MONDAY, MAY 7, 2012 — 1:30 P.M. ADM/N/STRATIVE CONFERENCE ROOM - PALM DESERT CIV1C 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),ali 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 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 modified Oversight Board action shall not become effective until approved by the Department. �'.t3�o-v�l SP i�q� �3s6nI T-, i �.�'�L�5��. �c'C.��'�i�I�°�Y'n'�i#"a,�� I. CALL TO ORDER p� ��.� "��.____.__ � �....__.__��.___..�. Chair Spiegel convened the meeting at 1:32 p.m.VEF�I.T�:�� __��s�� C�ri�i��r�fi1��rit�� t�� C;��:r��'s ��a�;e II. ROLL CALL -- � Present: Member Lisa Brandl (representing Riverside Co. Board of Supervisors) Member Heather Buck (Palm Desert RDA former Employee) Member Bill Carver(representing Riverside County) Member Edwin Deas(COD, representing Chancellor of California Community Colleges) Member Patricia A. Larson (representing Coachella Valley Water District) Member Peggy Reyes (DSUSD, representing Riverside County Office of Education) Chair Robert A. Spiegel (Mayor, City of Palm Desert) 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 M. Moore, Director of Housing Mark Greenwood, Director of Public Works Veronica Tapia, Accountant Martin Alvarez, Redevelopment Manager David Hermann, Management AnalysUPublic Information Officer Rachelle D. Klassen, Secretary, Successor Agency-Palm Desert RDA I PRELIMINARY MINUTES D R A F T MAY 7, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY III. ORAL COMMUNICATIONS None IV. APPROVAL OF MINUTES A. MINUTES of the April 9, 2012, Adjourned Regular Meeting of the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency. Member Larson moved to approve the Minutes as presented. Motion was seconded by Member Carver and carried by a 7-0 vote. V. NEW BUSINESS A. ACTIONS/MINUTES OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY. Member Larson moved to receive and file the Minutes of the Successor Agency to the Palm Desert Redevelopment Agency Meeting of April 12, 2012. Motion was seconded by Member Deas and carried by a 7-0 vote. B. INFORMATIONAL REPORT REGARDING REAL ESTATE ASSETS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY. Staff provided a hand-out, containing a draft location map and corresponding draft spreadsheet describing the real estate assets of the Successor Agency to the Palm Desert Redevelopment Agency, and made an oral report regarding those materials. With Oversight Board concurrence, the report was received and filed. C. REQUEST FOR APPROVAL OF ADDITIONAL SERVICES IN AN AMOUNT NOT TO EXCEED $12,500 (ADDITIONAL SERVICES NO. 3) TO CONTRACT NO. R29410A WITH INTERACTIVE DESIGN CORPORATION FOR PROFESSIONAL ARCHITECTURAL SERVICES FOR THE CARLOS ORTEGA VILLAS PROJECT. Member Larson moved to authorize: 1) Additional Service No. 3 in an amount not to exceed $12,500 to Interactive Design Corporation, Palm Springs, California, for Professional Architectural Services; 2) staff to forward to the Oversight Board for approval; 3) Director of Finance to transfer funding from contingency to base in the amount of$12,500 upon approval in accordance with the requirements of ABx1 26 —funds are available in the Capital Budget for the Carlos Ortega Villas, Account No. 703-8691-466-4001. Motion was seconded by Member Carver and carried by 7-0 vote. 2 2- PRELIMINARY MINUTES D R A F T MAY 7, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY D. LETTERS TO THE RIVERSIDE COUNTY OFFICE OF EDUCATION, DESERT COMMUNITY COLLEGE DISTRICT, AND PALM SPRINGS UNIFIED SCHOOL DISTRICT. Member Carver moved to receive and file the letters as presented. Motion was seconded by Member Brandl and carried by 7-0 vote. E. REQUEST FOR APPROVAL OF FOUR PROPERTY MAINTENANCE SERVICE CONTRACTS IN AN AMOUNT NOT TO EXCEED $7,180.11 FOR PARCELS LOCATED ON ALESSANDRO ALLEY. Member Larson moved to approve the Successor Agency Executive Director's approval of four (4) Maintenance Service Contracts in an amount not to exceed $7,180.11 for parcels located along Alessandro Alley with the following vendors: 1)Horizon Landscape for lot clean-up ($3,255.00); 2) Quality Landscape for lot clean-up ($1,560.00); 3) The Land Stewarts for dust mitigation ($1,941.11); 4) pending bid for one-year temporary fence rental (est. $2,344.00) — funding forthis expenditure was approved by the Successor Agency and Oversight Board on the Recognized Obligation Payment Schedule (ROPS) Page No. 2, Line Item 43. Motion was seconded by Member Brandl and carried by 7-0 vote. VI. CONTINUED BUSINESS None VII. OLD BUSINESS None VII1. REPORTS AND REMARKS A. CHAIR Chair Spiegel commented that the process was getting very interesting,specifically today's look at assets and their future disposal. He hoped that in the ne�couple of years the economy would improve and property values would increase in order to take care of the bond holders. B. MEMBERS OF THE OVERSIGHT BOARD Member Carver called attention to an article in today's newspaper regarding a 2012 Economic Forecast Conference to be held on May 15. He said the main subject to be discussed was a Redevelopment Agency Panel with a number of topics, and he was considering attending. 3 3 PRELIMINARY MINUTES D R A F T MAY 7, 2012 REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY IX. ADJOURNMENT With Oversight Board concurrence, Chair Spiegel adjourned the meeting at 2:20 p.m. ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 4 � ,-. MINUTES i � �� REGULAR MEETING OF THE BOARD UF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, APRIL 26, 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 3:04 p.m. 11. ROLL CALL Present: Director Jean M. Benson Director Cindy Finerty � B4,��RS�H��-( ,-� Director Jan C. Harnik � B0�5-o Vice Chair William R. Kroonen �N - ►� � Chair Robert A. Spiegel VERIFIED BY��r��o c�� Original an file wit� CIh,Clerk's O ce 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 Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bill Hunley, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk �`° 111. ADJOURN TO CLOSED SESSION r�..� Request for Closed Session: None .� MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 26, 2012 �: On a motion by Finerty,second by Kroonen,and 5-0 vote of the SuccessorAgency Board of Directors, Chair Spiegel adjourned the meeting to Closed Session of the City Council at 3:05 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 af the April 12; 2012, Regular Meeting of the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency. Rec: Approve as presenfied. B. CLAIMS AND DEMANDS AGAINST SUCCESSOR AGENCY TREASURY - Warrant Nos. 231 RDA, 236RDA, 238RDA, 228SA, 234SA, and 240SA. Rec: Approve as presented. . 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. VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None w�«. ;v� ��.:� 2 � MINUTES SUCCESSOR AGENCY TO THE PALM DESERT REDEVEL4PMENT AGENCY MEETING APRIL 26, 2012 �' ��. �� X. CONTINUED BUSINESS None XI. OLD BUSINESS � A. REQUEST FOR APPROVAL OF ADDITIONAL SERVICES IN AN AMOUNT NOT TO EXCEED $12,500 (ADDITIONAL SERVICES NO. 3) TO CONTRACT N0. R29410A WITH INTERACTIVE DESIGN CORPORATION FOR PROFESSIONAL ARCHITECTURAL SERVICES FOR THE CARLOS ORTEGA VILLAS PROJECT (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Redevelopment Manager Martin Alvarez noted there was a revised staff report in the Agenda packet. He said the additional service request would amend the contract with the architect to allow engineers ta go on site and excavate the exact 17 locations for gas, water, electric, and other utilities, to avoid difficulties when moving forward with the construction. Responding to question, he confirmed the ��; correct amount to be used is $12,500. Mayor Pro Tem/Vice Chair Kroonen moved to, by Minute Motion, authorize: 1)Additional Service No. 3 in an amount not to exceed $12,500 to Interactive Design Corporation, Palm Springs, California, for Professional Architectural Services; 2) Staff to forward to the Oversight Board for approval; 3) Director of Finance to transfer funding from contingency to base in the amount of$12,500 upon approval in accordance with the requirements of ABx1 26—funds are available in the Capital Budget for the Carlos Ortega Villas, Account No. 703-8691-466-4001. Motion was seconded by Finerty and carried by a 5-0 vote. XI1. PUBLIC HEARINGS None XI11. REPORTS,REMARKS,SUCCESSOR AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL ��'°' None �� ;: 3 � MINUTES SUCCESSOR AGENCY T4 THE PALM DESERT REDEVELOPMENT AGENCY MEETING APRIL 26, 2012 ;�:;,,. �� r.�Y tp: 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 5:07 p.m. /.�� f � ROBERT A. P , HAIR ATTEST: RAC ELLE D. KLAS EN, S CRETARY SUCCESSOR AGENCY T� THE PALM DESERT REDEVELOPMENT AGENCY ��;, ; k�yf.: �`� wwtiliui 4 � !4 p /� �F A P P R 0 V E D D I�f'1 F T ,,, � �NH#�rR'�f MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY THURSDAY, MAY 10, 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 Present: Director Jean M. Benson Director Cindy Finerty �p�,� S'P;��( �s�r� Director Jan C. Harnik � � � Vice Chair Pro Tem William R. Kroonen YOVERSIGHT BOARD (5-0� Chair Robert A. Spiegel pN - - ��..� VERIPIED BY_� �c�,�..-. Also Present: - - �-- John M. Wohlmuth, City Manager Ociginat on file with�ity Clerk's Office David J. Erwin, City Attorney Justin McCarthy, Assistant City Manager Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Communify 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 Martin Alvarez, Redevelopment Manager Stephen Y. Aryan, Risk Manager Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Mary LaCross, Administrative Secretary Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: --- f A P P R 0 V E D PREtfMtP�tRY MINUTES DRAFT MAY 10, 2012 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING 1) Property: APN 694-160-003 - University Property - North Sphere, Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Martin Alvarez/Ruth Ann Moore/ Successor Agency to the Palm Desert Redevelopment Agency Property Owner: Successor Agency to the Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment Upon a motion by Harnik, second by Kroonen, and 5-0 vote of the Successor Agency Board of Directors, Chair Spiegel adjoumed the meeting to Closed Session at 3:01 p.m. He reconvened the meeting at 4:01 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 April 26, 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. 243RDA, 249RDA, 246SA, and 252SA. Rec: Approve as presented. C. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of March 2012 (Joint Consideration with the Palm Desert City Council). Rec: Receive and file. 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. 2 -- -__ I � A P P R 0 V E D �'�EtMAthFA�MINUTES DRAFT MAY 10, 2012 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING VII. CONSENT ITEMS HELD OVER None VIII. RESOLUTIONS None IX. NEW BUSINESS None X. CONTINUED BUSINESS None XI. OLD BUSINESS None XII. PUBLIC HEARINGS None XIII. REPORTS, REMARKS,SUCCESSORAGENCYBOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. SUCCESSOR AGENCY COUNSEL None C. CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY None 3 � � A P P R 0 V E D PREEtMHdf�'tf MINUTES DRAFT MAY 10, 2012 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING XIV. ORAL COMMUNICATIONS - C MR. KENNETH DORAN, Elkhorn Trail, Palm Desert, warned Chair Spiegel to watch his tone with him in the future, because he didn't intend to take it anymore. He said he would be targeting him, because he'd seen him do things illegaNy. He again cautioned him not to chastise him from the dais. Chair Spiegel responded it was policy that once a person had been allowed to speak to a matter on the agenda, it represented their turn; they were not allowed to return to the microphone to speak again on the matter. MR. DORAN refuted the statement. XV. ADJOURNMENT On a motion by Finerty,second by Kroonen,and 5-0 vote of the SuccessorAgency Board of Directors, Chair Spiegel adjourned the meeting at 5:45 p.m. ROBERT A. SPIEGEL, CHAIRMAN ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 4 1 �-- �'�� SUCCESSOR AGENCY TO THE � � PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM !��'�. �, �I3r�.��,.SP;�� l�as��li� 5.��D�.��Ti'��'i' �sa_��`�r�� TO: John M. Wohimuth, Executive Director QN__ _�- '--2at� '-E �..�._ �..�_____�--_��._...__._.._ �� BY.�� ,�� FROM: Janet M. Moore, Director of Housi pri�n� on file with C;ity Clerks Office DATE: May 29, 2012 SUBJECT: Department of Finance Letter to Palm Desert Regarding ROPS 1 & 2 Attached are the letters from the Department of Finance (DOF) regarding our Recognized Obligation Payment Schedules (ROPS) for the periods that cover January 2012 through December 2012. The DOF originally returned the schedules for reconsideration of several items: � 1. Incorrect listing of Pass-Through Trust Obligations 2. Advances (loans) from the City to the Agency 3. Planned Projects In the DOF's letter of approval dated May 26, 2012 for Palm Desert's ROPS indicates they have further reviewed the Pass-Through Trust Obligations and accepted the line items as enforceable obligations. We are currently drafting our formal written response to the DOF on the remaining items to be reconsidered. The response will include backup and related documentation for the advances (loans) from the City for the acquisition of real property as well as identifying the need for the upcoming planned projects funded by bond proceeds. There are bond proceeds available to complete or participate in many of the planned projects which cannot be used for any other purpose under the bond documents and tax certificates. The final issue identified in both letters from the DOF is related to the calculated administrative cost allowance. The calculated allowance for January through June is close to the estimate, however, the calculation for the period from July through December is significantly reduced because it is based on the actual amount to be disbursed by the County of Riverside to Palm Desert on June 1. Certain payments on the approved ROPS for this period will be paid from monies on hand and therefore are not subject to the administrative cost calculation which in turn reduced the allowance. We are in the process of reviewing the effects of this change. G:\rda\HOUSINGUanet Moore�DRAFTSUohn Wohlmuth�lemo for OS Board DOF Rops Itr 5-29-2012.docx � �3 � ��NT dM � � �� ,� a "�' Z w tlll n o r� * DEPARTMENT OF' EdMUND G. BRowN JR. - GOVERNOR � Cq�tF00.N�p F I N A N G E 91 5 L BTREET■ BACi7AMENTO �'.A� 958 7 4-3"T�6 ■WWW,OOF.CA.f30V M ay 26, 2012 Veronica Tapia, Accauntant City of Palm Desert � 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Tapia: Subject: Recognized Obligation Payment Schedule Approval Letter Pursuant to Health and Safety Code (HSC} section 34177 (I) (2) {C),the City af Palm Desert Successor Agency submitted Recognized Obligation Payment Schedules (ROPS)to the California Department of Finance (Finance) on Ap�il 11, 2012 for the period January to June 2012 and April 97, 2012 for the period July #o December 2012. Finance is assuming appropriate oversight board approval. Finance has comple�ed its review of your ROPS, which may have included obtaining clarification for various items. In Finance's letter dated April 26, 2012, the fallowing pass-thru ttust account obligations from both ROP5 periads were denied as enforceable obligations (EOs); however, after further review of documents, they have been accepted as EOs: • Project Area 1, page 1, item 25 • Project Area 2, page 5, item 45 • Praject Area 3, page 8, item 25 • Project Area 4, page 12, item 27 Additionally, afte�recalculating administrative cost a[lowance, we are no longer questioning the January to June 2012 �dministrative expenses as they are within the allowable amoun#. For the July to December 2012 administrative expenses, we recalculated and reduced the questioned amount to $239,969 from $613,182 {as stated in the April 26, 2012 letter}. Except for items disal�owed in whole or in part as enforceable obligations noted in Finance's letter dated April 26, 2012, Finance is approving the remaining items listed in your ROPS for both periods. This is our determination with respect to any items funded from #he Redevelopment Property Tax Trust Fund (RPTTF) #or the June 1, 2012 property tax allocations. If your oversight board disagrees with our dete�rnination with respect to any items not funded with property tax, any future resolution of the disputed issue may be accommodated by amending the ROPS for the appropriate time pe�ioci. Items nat questioned during this review are subject to a subsequent review, if they are included on a future ROPS. If an item included on a future ROPS is not an enforceable abligation, Finance resenres the right to remove that item from the future ROPS, even if it was nat�emoved from the preceding RQPS. I'--� • Ms. Tapia May 26, 2012 Page 2 Please refer to Exhibit 12 at htkR:!/www.daf.ca.qov/assembiy bills 26-27fview.ph�for the amoun#of Redevelopment Property Tax Trust Fund (RPTTF) that was approved by Finance based on the schedule submitted. As you are aware the amount of available RPTTF is the same as the property tax increment that was available prior#o ABx1 26. This amount is not and never was an unlimited funding source. Therefore as a practical matter, the ability to fund the items on the ROPS with property tax is limited to the amount of funding available in the RPTTF. Please direc#inquiries to Evelyn Suess, Supervisor or Mindy Patterson, �ead Analysk at (916} 322-2985. Sincerely, /��'�,� 1�� MARK HILL Program 8udget Manager cc: Ms. Janet Moore, Directar of Housing, City of Palm Desert Ms. Pam Elias, Chief Accounting Property Tax Division, County af Riverside Ms. April Nash, Supervising Accountant, County of Riverside Ms. Jennifer Baechel, Business Process Analyst II; County of Riverside �� . �NT p� �� ti � � a "�i�ii' Z +� i l l � o n, .� DEPARTMENT OF EOMUND G. BRnwM J�t. • GOVERNOR °�«►na'''��F 1 N A N C E 9)9 L HTfiltT� �ACRAMCNTO CA�9'SB/4-3706�Www.oOi.CA.�OV Apri126, 2012 Veronica Tapia, Accountant City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Tapia: Pursuant to Heaith and Safety Code(HSC)section 34177 (I) (2) {C),the City of Palm Desert Successor Agency submitted a Recognized 4bligation Payment Schedule(ROPS)to the Califomia Departmen#of Finance(Finance)on April 11, 2012 for the periods January through June 2012 and July through December 2012. Finance staff contacted you for clarification of items listed in the ROPS. HSC section 34171 (d) lists enforceable obligation (EO)characteristics. Based on a sampie of line items reviewed and application of the law, the following do not qualify as EOs: January th�0U4�h June 2012 R4PS: • The following line iterns were for pass thru trust account obligations totaling $80.5 million. HSC sedion 34163(b)prohibits a redevelopment agency(RDA)from entering into a contract with any entity after June 27, 2011. It is our understanding that no contracts are in place for these line items. Item Project Page Number Area Number � Pro'ect Amount 25 1 1 Pass-Thru Trust Ac+ct 4bli ation $39,862,122 ;, 45 2 5 Pass-Thru Ttvst Acct�bligation 3,665,266 ! 25 3 8 Pass-Thru Trust Acct Obligation 6,549,775 ' 27 4 12 Pass-Thru Trust Acct Obli ation 10,435,341 :!' �`_ Tota) $60,512,504 ' • The following line items are for agteements or contracts between the City af Palm Desert and the Palm Desert Redevelopment Agency(RDA}totaling $13.5 million. HSC section 34171 (d}(2)states that agreements or contracts between the city that created the RDA and the former RDA are not enforceable unless the agreements were entered into within the first two years of the date of the creation of the RDA. l � Ms. Veronica Tapia Aprit 26, 2012 Page 2 Item P�oject Page Number Area Number Pro'ect Amount 5 2 4 North S he�e Hatel Land $5,500,000 North Sphe�e 6 2 4 Praperty Acquisition 2,055,000 City Loan for formation of 7 2 4 Pro'ect Area No.2-1986 6,00O,OOQ Total $13,555,OOQ • The following line items are for projects that do not have contracts in piace in the amount totaling $123.3 million. HSC section 34163(b)prohibits a RDA from sntering into a contract with any entity after June 27, 2011. It is our understanding that contracts for these line items were awarded after June 27, 2011. item Project Page Number Area Number Pro ect Amount Alessandro AI1ey Frontage 46 1 2 Rd Im s $5,000,000 Core Commercial Parking 47 1 2 Improvements 1,000,000 President's Piaza Parking 48 1 2 Lot Im s 1,200,000 49 1 2 Under round Utilities 10 000,000 50 1 2 Portola Ave Widenin 3,�00,000 4S 2 5 North S here Fire Station 10,000,000 50 2 5 Monterey Ave On/Off Ramp 6,040,000 Im s 51 2 6 Portola 1-101m s 16,800,000 52 2 6 Unde raund Utilities 12,000,000 30 3 9 Portola Ave ONOff Ramp 8,2Q0,000 Construction 31 3 9 Under round Utilities 2,OOQ 000 32 3 9 Portola Avenue Widenin 5,000,000 32 4 12 Carlos Orte a�Itas 18,500�000 33 4 12 Desert Pointe Rehabilitation 6,000,000 34 4 12 Unde round Utilities 18 571,000 Total �123,271�000 � Administrative cost claimed exceeds allowance by$708,712 (see Attachment A). HSC section 34171 (b) limits fiscal year 2011-12 administrative expenses#v five percent of property tax altocated to the successor agency or$250,000, whichever is greater. � � Ms. Veronica Tapia April 26, 2012 Page 3 Juiv to December 2Q12 ROPS: • The foflowing line items were for pass-thru trust account obligations totaling $12.4 million. HSC section 34163(b)prohibits a RDA from entering into a contract with any entity after June 27, 2011. It is our understanding that there are no contracts for these line items. Item Project Page Number Area Number Pro'ect Amount 25 1 1 Pass-Thru Tn,�st Acct Obli ation $8,667,301 45 2 � � 5 Pass-Thru Trust Acct Obligation 250,169 25 3 ! S Pass-Thru Trust Acct Obii ation 532,295 27 4 12 Pass-Thru Trust Acct Obli ation 2,990,664 Totai $12,440,429 • The following line items are for agreements or contracts between the City of Palm Desert and the Palm Desert RDA#otai�ng $13.5 miliion. HSC section 34171 (d)(2)states that agreements or contracts between the city that created the RDA and the former RDA are not enforceable unless the agreements were entered into within the first two years of the date of the creatian of the RDA. Additionally,these line items were shown as payments in the January to June 2012 ROPS. Item Project Page Number Area Number Pro'ect Amount 5 2 4 North S here Hotel Land $5,500,00� North Sphere � 6 2 4 Property Acquisition 2,055,000 City Loan for formation of 7 2 4 Praject Area No.2-1986 6,00O,OOQ Total $13,555,OOQ • The following line items are for projects that do not have contracts in place in the amount totaling $123.3 million. In addition, HSC section 34163(b)prohibits a redevelopment agency from entering into a contract with any entity after June 28, 2Q11. It is our unders#anding that contracts for these line items were awardecf after June 27, 2011. Item Project Page Number Area Number Pro'ect Amount Alessandro Alley Frontage 46 1 2 Rd Im s $5,000,000 Core Commercial Parking 47 1 2 lmprovements 1,000,000 PresidenYs Plaza Pa�lcing 48 1 2 Lot Im s 1,200,000 49 1 2 Unde round Utilities 10,000,000 50 1 2 Portola Ave Widenin 3,d00,QQ0 49 i 2 5 North S here Fire Stafion 10,Q00,000 50 1 2 5 Monterey Ave On/Off Ramp 6,000,000 Im s 1� • Ms. Veronica Tapia April 26, 2012 Page 4 Item Project Page Numbe� Area Numbef Pro ect Amount 51 2 6 Portola I-101m s 16,800,000 52 2 6 Unde� round Utilities 12 OOQ 000 3Q 3 9 Portola Ave On/�ff Ramp 8,200,000 Const�uction 31 3 9 Under round Utilities 2 000,000 32 3 9 Portola Avenue Widenin 5 000,000 32 4 12 Carlos Orte a Vilkas 18 500,000 33 4 12 Desert Pointe Rehabilitation 6 000 000 34 4 12 Under round Utilities 18 571,000 Total $123 271.000 • Administrative expenses totaling $613,182 (Attachment B}. HSC section 34171 (b) limits administrative expenses to three perc�nt of property tax allocated to the successor agency or$250,000,whichever is greater. As authorized by HSC section 34179(h), Finance is returning your ROPS for yaur reconsideration. This action will cause the spec�c ROPS items noted above to be ineffective until Finance approval. Furthermore, items listed on future ROPS will be subject#o review and may be denied as EOs. If you believe we have reached this conclusion in error, please provide further evidence that the items questioned above meet the definition of an EO. Please direct inquiries ta Evefyn Suess, Supenrisor or Mindy Pattersan, �ead Analyst at (916) 322-2985. Sincerely, , 6�� MARK HILL Program Budget Manager cc; Ms. Janet Moore, Director of Housing, City of Palm Desert Ms. Pam Elias, Chief Accounting Property Tax Division, County of Riverside Ms. April Nash, Supervising Accountant, County of Riverside Ms. Jennifer Baechel, Business Process Analyst 11, County of Riverside �� ATTACHMENT A ADMINISTRATIVE COST CALCULATION For the Period January—June 2012 Project Ltne Payment Area ttem F'ro'ect NamelDebt Obii ation Source Amount 1 � 2002 Tax Ailocation Refunding 8ond issue RPTTF 31 114 664 � 2 2003 Tax Allocation Bond issue-$19,000,400 RP7TF $950 000 � 3 2004 7ax Ailocation Bond issue-$24,945,000 RP1TF $1 902,588 1 4 2006 Tax Ailocation Bond Issue-$62,320,000 RPTTF $S,Q93,952 � 5 2007 7ax Aliocation Bond Issue-$32,600,400 RPTTF $3 881,750 � 7 2002 Nousing Tax Altocation 8ond Issue-$12M RPTTF $769 449 � g 2007 Housing Tax Aliocation Bond Issue-$87M RPTTF $8 418137 � g ind[an Springs Stipulated Agreement ^ RPTTF $89 834 1 14 UM Housing Fund Loan RPTTF $1,304,76fi � 25� Pass-thni trust account obligatians RPTtF �39,862 122 � 28 Energy Indepe�dence Program RPTTF $200 � 32 Stipulated Judgment Case No. 51'!24 RPTTF 32,838 633 1 33 Replacement Reserve Fund RpTTF $1 618199 1 39 PDHA Property Management RPTTF $164 946 1 42 pDHA Property Maintenance � RPTTF $44 536 1 43 A9ency Owned Properties RPTTF �25 000 1 44 Addi�onal DisUosures on TAB's RPTTF $1,400 � �� NSP Rehabilitation RPTTF $41 900 1 52 Santa Rosa Apartments RPTTF �30 004 2 1 2002 Tax Allocation Refundin Bond Issue-$17M RPTTF $1,324 637 2 2 20U3 Tax Aliocation Bond issue-$15M RpTTF $769 006 2 3 2006 Tax Aliocation Bond Issue-$67M RPTTF $3,920 987 2 4 Cuunty CIP Reimbursement for 88/89 and 90/91 RPTTF $122 707 2 5* Narth Sphere Hotel land RPTTF $90 000 2 g* North Sphere Property Acquisition RPTTF $68 750 2 7* Ctty Loan formation of Project Area No. 2-1986 RP1TF $25,688 2 g UM Housing Loan __ RPTTF $375,581 2 32 Stipulated Judgrnent Case No. 51124 RPTTF $882 607 2 33 PDHA Property Management RPTTF $1fi,488 2 38 Replacement Reserve Fund RPTTF $179 80U 2 45* Pass-Thru Trust Account�bligations RPTTF $3 665 266 2 qg Addi�onal Disclosures on TAB's RPTTF ffi600 3 1 2003 Yax Aliocation Bond Issus-$4,745,004 RPTTF $294 245 3 2 2U06 Tax Allocation Bond lssue-�15,029,526 RPTT� $757 475 3 3 UM Housing Loan RPTTF $121 289 3 13 Stipula#ed Judgment Case Na. 51124 RP7TF $232 265 1 c�'f.`a Project Line Payment Area item Pro'ect NamelDebt Obli ation Source Amount 3 14 Replacement Reserve Fund RPTTF $179 800 3 15 PDHA Property Management RPTTF $1fi 488 3 25' Pass-Thru Trt�st Accaunt Obligations RPTfF $6 549 775 3 26 Additional Disclosures on TAB`s RPTTF $400 4 1 1998$11 020 000 Tax Allocatian Bond Issue RPTTF $557,530 4 2 2001 $15 695,000 Tax Afiocation Bond Issue RPTTF $966,967 4 3 2006 19 273,089 Tax Allocation Sond Issue RPTTF $1 320 820 4 4 UM Housing Fund Loan RPTTF $332 155 4 21 Stipulated Judgment Case No. 51124 RPTTF $696 795 4 � Replacement Reserve Fund RPTTF $179 800 4 23 PDHA P�operty Management RPTTF $16 488 4 26 Additionai Qisc(osures on 7AB's RPTTF $600 4 27� Pass-Thru Trust Account Obligations RPTTF $10,435 341 4 30 NSP Rehabilitation RPTTF $20 8fi2 Subtotai $102 248 26fi Less Amount Disallowed see line items wlth asterisk above $60 696 942 Total RPTTF Claimed $41 551 324 Admin Allowance Greater of 5°�or;250 000 s2 077,566 2 �-� Line items Considered Adrninistrative Costs January-June 2012 R4PS Project Line Area item Descri tion Pa ment Source Amount � �� Ttustee Services RPTTF $1 392 � �g Disclosure Services RPTTF $1 152 � �y Legal Services RPTTF $8 224 1 18 Legal Services RPTTF $648 1 19 p�a�ssional Association RPTTF $2 530 1 28 Auditing Services RPTfF �1 U63 1 21 Reporting Services�----� RPTTF $422 � 22 Banking Servlces RPTTF $99 1 23 Liability Insura�ce � RPTTF $1 160 1 24 Facitities Lease RPTTF $32,000 1 27 Cartying Costs-Agency Property RPTTF $1 944 � 28 Carrying Costs-Agency PropertY RPTfF $15,004 1 30 � Project Area Adminis#ration RPTTF $1247 855 � 31 Vestecf Empioyee Benefit Obligation RPTTF $332,195 2 2� Trustee Services RPTTF $7 974 2 � Disclosure Services RPTTF $6 602 2 23 �-ega!Services RPTTF $44 268 2 24 Legal Services RPTTF $3 715 2 23 � Professional Association RPTTF $14 498 2 2g Auditing Services RPTTF $6 089 2 30 Project Area AdministraBon RPTTF $388 676 2 31 Vesfied Empfoyee Benefit Obligation RPTTF $1a3 470 2 43 Reporting Seroices RPTTF $2 416 2 q4 LlabiUty Insurance RPTTF $6 645 2 47 Banking Servlces RPTTF $546 3 11 Project Area Administratlon RPTTF $102 283 3 12 Vested Ernployee 8enefit Obligation RPITF $27 22S 3 18 Trustee Services T RPTfF $4 21fi 3 19 Disclosure Services RPTTF $3 491 3 20 Legal Services RPTTF $23 408 3 21 Legal Services RPTTF $1 965 3 22 Professionai AssxiaGon RPTTF $7,666 g 23 Auditing Services RPTTF $3,094 3 Z4 Reporting Services RP7TF $2,455 3 27 Liability Insurance RPTTF $3 514 3 28 Banking Services RPTTF $300 4 g Trustee Services RPTTF $100 4 g Disclosure Services RPT7'F $83 3 �-�" Project Line Area item Desc�i tion Pa ment Source Amount 4 10 Legal Services RPTTF $557 4 11 Legal Services T RPTTF $47 4 12 Professional Associallon RPTTF $175 4 13 Auditing Services � RPTTF $74 4 14 Reporting Services RPTTF $29 4 15 Liability insurance RPTTF $84 A 16 Banking Senrices � RPTTF $7 4 �g Projec#Area Administration RPTTF $306,849 4 20 Vested Employee Benefit Ohligation RPTTF $68,073 Total $2,786 278 Less Admin Allowance $2,077 566 Total Disallowed Administrative Costs E708 T12 4 �--�J ATTACHMENT B ADMINISTRATIVE COST CALCUI.ATION Juty—Dec�mber 2012 Project Line Payment A�ea item Pro'ect Name/Debt Obli ation &ource Amount 1 1 20Q2 Tax Allocation Refundin Bond Issue-$22M RPTTF $1,114 665 �{ 2 2003 Tax Allocation Bond Issue-$19,�0O,OOQ RPTTF $950 000 � 3 2004 Tax Allocation 8ond Issue-$24,945,000 RPTTF $1 983,963 1 4 2006 Tax Allocation Bond Issue-�62,320,000 RPTTF $5168 269 � 5 20�7 Tax Altacation 8ond Issue-$32,BOQ,000 RPTTF $3 895 000 � 7 2002 Housing Tax Allocation Bond issue-$12M Rp'�� $763 349 1 8 2007 Housing Tax Allocation Bond Issue-$87M RPTTF $8 318 038 � g Indian Springs Stipulated Agreement RPTTF $69,834 1 10 UM Housing Fund Loan RPTTF 31 304 766 1 25' Pass-thru trust acxount obligations RPTfF $B,66T 301 1 26 Energy Independence Program RPTTF $7 200 � 32 S�pulated Judgement Case 1Vo. 51124 RPTTF $2 833 633 1 33 Replacement Reserve Fund RPTfF $1,916 402 1 39 PDHA Prope�fy Management � RPTTF $123 708 1 4p PDHA P�operties RPYTF $3,228 1 41 POHA Prope�ties RPTT� $5,604 1 42 PDHA Property Maintenance ____ RPl?F �44 536 1 43 Agency Owned Properties RPTTF $25,0� � 44 Additional Disclosures on TAB's RPTTF $1,400 1 51 NSP Rehabilitation RP1TF/Other $8,058 � �2 Santa Rosa Apartments RPTfFlOther $15 000 2 � 2002 Tax Ailocadon Retunding Bond issue-$17M RPTTF $1 304,763 2 2 2003 Tax Aliocation Bond Issue-$15M RPTTF $769,006 2 3 2006 Tax Allocation Bond Issue-$67M RPTTF �3 9Q7 988 2 5• North Sphere Hotel land RP1TF $90 000 2 g* North Sphere Property Acquisition RPTTF $68,750 2 7` City Loan forma�vn of Project Area No. 2-198fi RPTfF $25,688 2 g UM Housing Loan RPTTF $469 451 3 26 Additiona!Disclosu�es on TAB's RPTTF $400 2 32 Stipulated Judgement Case No. 51124 RPTfF $882,607 2 33 PDHA Property Management _ RP1TF $12 366 2 34 PDHA Properties RPTTF $323 2 35 PDHA Properties „----- RPTTF $560 2 36 Replacement Reserve Fund RPTTF $357 281 Z 4�+ Pass-Thru Trust Account Obligations RP1TF $250,169 2 46 Additional Disclosures on TAB's RPTTF $600 5 a--� ProJect Line Payment Area item Pro'ect NamelDebt Obli ation Source Amount 3 � 2003 Tax Ailocation Bond Issue-$4,745,000 RP7TF $297 265 3 2 2006 Tax Aliocation Bond Issue-$15,029,526 RPITF $793,875 3 3 UM Housing Loan RPTTF $121,289 3 13 Stipulated Judgement Case No. 51124 RPTfF $232,265 3 14 Repiacement Reserve Fund RPTTF $71 470 3 15 PDHA Property Management RPTTF $12 381 3 16 PDHA Properties RPl?F $323 3 17 PDHA Properfies RPTTF $600 3 2S* Pass-Thru Trust Account Obligations RPTTF $532 295 3 � Additional Disclosures on TAB's RPTTF $4d0 4 � 1998$11,020,000 Tax Allocation Bond issue RPTf� $554 240 4 2 2001 $15,695,000 Tax Aliocation Bond issue RPTTF $959 805 4 3 �a�$�8�273,089 Ta�c Allocation 9ond Issue RPTTF $1 307 876 4 4 UM Housing Fund Loan RPTTF $332155 q 21 Stipulated Judgement Case NoT51124 RPTTF $696 795 4 23 PDHA Properky Management � RPTTF $12 366 4 24 PDHA Property Management RPTTF $323 q 2� PDHA Praperty Management RPTTF $560 4 26 Additionai Disclosures on TA6's RPTTF $600 4 27* Pass-Thru Trust Account Obligations RPTTF $2 990 684 4 34 NSP Rehabilitation RPTTF/Other $13 552 Subtotai: $54,290 000 Less Amount Disallowed see line items with asterisk above $12,624,867 Tota!RPTTF Claimed $41 665 133 Admin Allowance Greater of 3%or 5250 000 a1,249 954 6 "�--t:.� Line Items Considered Administrative Costs July- December 2012 ROPS Project Line Area item Desc�i tion Pa ment SoU�ce Amount � 15 Trustee Services RPTTF $1,419 1 16 Disciosure Services RPTTF $1 176 � 17 Legal Services RP77F $7 878 � 18 Legal Services RPTT'F $660 � 19 Professional Association RPTTF $2,580 � 20 Audidng Services RPTTF $2167 � 21 Reporting Services RPTTF $430 � 22 Banking Services RPTTF �102 �y 23 Liability Insurance RPTTF $1 158 � 24 Facilities Lease RPTTF $31,998 � 27 Cartying Costs-Agency Property RPITF $1 944 � 28 Carrying Costs-Agency Property RP1TF $11 224 1 30 Project Area Admtntstration RPTTF $860 818 � 31 Vested Empioyee Benefit Obligation RPTTF $352 053 2 21 Trustee Seroices RPTTF $7 812 2 � Disc,losure Services RPTf'F $6,468 2 23 Legai Senrices RPTTF $43,366 2 24 Legai Services RPTTF $3 642 2 25 Professional Associa6on RPTTF $14,208 2 2g Auditing Services RPTTF �5 968 2 30 Project Area Administration RPTTF $205,828 2 31 Vested Employee Benefit ObAgation RPTTF $109 656 2 43 Reporting Services RPTTF $2,368 2 q4 Liability insurance FtPTTF $6 384 2 47 Banking Sen►ices RPTTF $558 3 11 Project Area Administration RPTTF $54 165 3 12 Vested Employee Benefit Obligation RPTTF $28 857 3 18 Trustee Services RPTTF $4134 3 19 Discfosure Servkes RRTf� $3,420 3 20 �egal Services RPTTF $22 938 3 21 Legal Services RPTTF ' $1 926 3 22 Professio�a)Association RPTTF $7 513 3 23 Auditing Services RPTTF $3156 3 24 Reporting Services RPTTF $1 252 3 27 Liability Insurance RPTT� �3,378 3 28 Banking Services RPTTF $294 4 g Trustee Services RPTTF $96 4 g Disclosure Services ftpnF ggq 7 � Project line Area item Desc�i tion Pa ment Sou�ce Amount 4 10 Legai Services RPTTF �546 4 11 ��gai Seroices RPTTF $48 4 12 Professional Associatian RPTTF $179 4 13 Auditing Services RPT7F $150 4 �q Reparting Services RPTTF $30 4 15 Liability Insurance RPTTF $13 4 16 Banking Services RPTTF $8 4 19 Project Area Administration RPTTF �'l62,496 4 20 Vested Employee Benefit Obligation RPTTF $86 570 Total $1863136 Less Admin Aliowance $1,249 954 Total Disaliowed Administrative Costs a613182 $ �-� Moore, Janet From: Tapia, Veronica Sent: Thursday, May 03, 2012 10:39 AM To: Patterson, Mindy Cc: Suess, Evelyn; Moore, Janet Subject: RE: Palm Desert ROPS Review Jan -June Hi Mindy, We are still working.through our review/response to your letter regarding the ROPs for Palm Desert. In the interim, I just wanted to address a couple of things that seemed easy. I think we have managed to figure out how our pass thru payments were not meeting the requirements under the DOF's guideline. We have spoken with the County of Riverside and understand that we should be listing the previously earned payments due to the taxing entities as"held in reserve" as opposed to coming from the "RPTTF fund". These funds, currently held in trust(or reserved)for the taxing entities are then to be paid directly by the successor agency from cash on hand. I think there was just some confusion with the timing of the payments and whether or not the funds would in fact be with the successor agency or have already been turned over with the assets to the County of Riverside (the chicken and the egg sort of dispute). Can you please confirm for me that if we make this adjustment we would meet the satisfaction of the DOF, by changing the source from "E" (RPTTF)to "C" (Reserve Balancesj for the following items: As(isted under ROPS 1 Item Page Number Pro'ect Area Number Pro'ect Amount 25 1 1 Pass-Thru Trust Acct Obli ation $39,862,122 45 2 5 Pass-Thru Trust Acct Obligation 3,665,266 25 3 8 Pass-Thru Trust Acct Obligation 6,549,775 27 4 12 Pass-Thru Trust Acct Obli ation 10,435,341 Total $60,512,504 Balances remaining under ROPS 2 Item Page Number Project Area Number Project Amount 25 1 1 Pass-Thru Trust Acct Obligation $8,667,301 45 2 5 Pass-Thru Trust Acct Obligation 250,169 25 3 8 Pass-Thru Trust Acct Obligation 532,295 27 4 12 Pass-Thru Trust Acct Obligation 2,990,664 Total $12,440,429 Also, in your review of ROPS 2 (luly—December), I noticed that there was a duplicate item counted, as well as one omitted from the list of the Administrative Costs Calculation. On page 5 and page 6,you have included Additional Disclosures on TAB's for Project Area No. 3/Item 26 two times ($400/ea). And then on page 6, Project Area No.4/Item 22 Replacement Reserve Fund for$273,489 is omitted (but included for all other project areas and on the prior ROPS). i �� A formal response to the review is forthcoming. As always,thank you so much for your time and assistance with this matter. Veronica From: Patterson, Mindy [mailto:Mindy.Patterson@dof.ca.gov Sent: Thursday, April 26, 2012 12:35 PM To: Tapia, Veronica Cc: Suess, Evelyn Subject: Palm Desert ROPS Review Jan -June Hi Veronica, We have reviewed the two ROPS. Here are our results that will be provided in a letter coming to you later today. The attachments for the administrative calculation are shown in attachments that will be provided in the letter. If you have further support for these questioned items, please send them our way. Thank you, Mindy Patterson Lead Analyst January throu�h June 2012: HSC section 34171 (d) lists enforceable obligation (EO) characteristics. Based on a sample of line items reviewed and application of the law,the following do not qualify as EOs: ? The following line items were for pass-thru trust account obligations totaling$60.5 million. HSC section 34163 (b) prohibits a redevelopment agency from entering into a contract with any entity after June 28, 2011. It is our understanding that no contracts are in place for these line items. Item Page Number Project Area Number Pro�ect Amount 25 1 1 Pass-Thru Trust Acct Obli ation $39,862,122 45 2 5 Pass-Thru Trust Acct Obligation 3,665,266 25 3 8 Pass-Thru Trust Acct Obligation 6,549,775 27 4 12 Pass-Thru Trust Acct Obligation 10,435,341 Total $60,512,504 ? The following line items are for agreements or contracts between the City of Palm Desert and the Palm Desert Redevelopment Agency(RDA)totaling$13.5 million. HSC section 34171 (d) (2)states that agreements or contracts between the city that created the RDA and the former RDA are not enforceable unless the agreements were entered into within the first two years of the date of the creation of the RDA. Item Page Number Number Project Area Pro'ect Amount 5 2 4 North S here Hotel Land $5,500,000 North Sphere 6 2 4 Property Acquisition 2,055,000 City Loan for formation of � 2 4 Project Area No.2-1986 6,000,000 2 P_�� . � ( � � To�l � $l3,sss,000 � ? The following line items are for projects that do not have contracts in place in the amount totaling $123.3 million. HSC section 34163(b) prohibits a RDA from entering into a contract with any entity after June 28, 2011. It is our understanding that contracts for these line items were awarded after June 28, 2011. Item Page Number Number Pro'ect Area Pro'ect Amount Alessandro Alley Frontage Rd 46 1 2 Imps $5,000,000 Core Commercial Parking 47 1 2 Improvements 1,000,000 President's Plaza Parking Lot 48 1 2 Imps 1,200,000 49 1 2 Under round Utilities 10,000,000 50 1 2 Portola Ave Widenin 3,000,000 49 2 5 North S here Fire Station 10,000,000 50 2 5 Monterey Ave On/Off Ramp 6,000,000 Imps 51 2 6 Portola I-lOIm s 16,800,000 52 2 6 Under round Utilities 12,000,000 30 3 9 Portola Ave On/Off Ramp 8,200,000 Construction 31 3 9 Under round Utilities 2,000,000 32 3 9 Portola Avenue Widenin 5,000,000 32 4 12 Carlos Ortega Villas 18,500,000 33 4 12 Desert Pointe Rehabilitation 6,000,000 34 4 12 Under round Utilities 18,571,000 Tota l $123,271,000 ? Administrative expenses totaling$788,712. HSC section 34171 (b) limits administrative expenses to five percent of property tax allocated to the successor agency or$250,000,whichever is greater. Five percent of the property tax allocated is$1,997,516. Therefore,$788,712 of the claimed $2,786,278 is not an EO. The calculation for administrative expenses is shown in Attachment A. 3 �� Julv to December 2012: Based on a sample of line items reviewed and application of the law,the following do not qualify as EOs for the July through December 2012 period: ? The following line items were for pass-thru trust account obligations totaling$12.4 million. HSC section 34163 (b) prohibits a RDA from entering into a contract with any entity after June 28, 2011. It is our understanding that there are no contracts for these line items. Item Page Number Pro'ect Area Number Pro'ect Amount 25 1 1 Pass-Tluu Trust Acct Obligation $8,667,301 45 2 5 Pass-Thru Trust Acct Obligation 250,169 25 3 8 Pass-Thru Trust Acct Obligation 532,295 27 4 12 Pass-Thru Trust Acct Obligation 2,990,664 Total $12,440,429 ? The following line items are for agreements or contracts between the City of Palm Desert and the Palm Desert RDA totaling$13.5 million. HSC section 34171 (d) (2) states that agreements or contracts between the city that created the RDA and the former RDA are not enforceable unless the agreements were entered into within the first two years of the date of the creation of the RDA. Additionally,these line items were shown as payments in the January to June 2012 ROPS. Item Page Number Number Pro'ect Area Pro'ect Amount 5 2 4 North S here Hotel Land $5,500,000 North Sphere 6 2 4 Property Acquisition 2,055,000 City Loan for formation of 7 2 4 Project Area No.2-1986 6,000,000 Total $13,555,000 ? The following line items are for projects that do not have contracts in place in the amount totaling $123.3 million. In addition, HSC section 34163(b) prohibits a redevelopment agency from entering into a contract with any entity after June 28, 2011. It is our understanding that contracts for these line items were awarded after June 28, 2011. Item Page Number Number Pro'ect Area Pro�ect Amount Alessandro Alley Frontage Rd 46 1 2 Imps $5,000,000 Core Commercial Parking 47 1 2 Improvements 1,000,000 President's Plaza Parking Lot 48 1 2 Imps 1,200,000 49 1 2 Under round Utilities 10,000,000 50 1 2 Portola Ave Widenin 3,000,000 49 2 5 North S here Fire Station 10,000,000 50 2 5 Monterey Ave On/Off Ramp 6,000,000 Im s 51 2 6 Portola I-lOIm s 16,800,000 4 � ' 52 2 6 Under round Utilities 12,000,000 30 3 9 Portola Ave On/Off Ramp 8,200,000 Construction 31 3 9 Under round Utilities 2,000,000 32 3 9 Portola Avenue Widening 5,000,000 32 4 12 Carlos Orte a Villas 18,500,000 33 4 l2 Desert Pointe Rehabilitation 6,000,000 34 4 12 Under round Utilities 18,571,000 Total $123,271,000 ? Administrative expenses totaling$613,182. HSC section 34171 (b) limits administrative expenses to three percent of property tax allocated to the successor agency or$250,000,whichever is greater. Three percent of the property tax allocated is$1,249,954. Therefore, $613,182 of the claimed $1,863,136 is not an EO. The calculation for administrative expenses is shown in Attachment B. Mindy Patterson Lead Analyst Department of Finance 916.322.2985 x 3117 5 J� TNE SUC(ESSOR AGENCY TO THE Pfllf�l DESERI REDEVELOP�IENI AGENCY 73-5io FKF:t� W,�RiNc� Dui�'E PALh4 DESERT, CALIFORNIA 92260-257H TEL: 760 346—o6i� r,�a:76o 34i-637z infoC�palm-desert.org May 21, 2012 Paui Angulo, CPA, MA County Auditor-Controller County of Riverside Mail Stop 1050 4080 Lemon Street, 11 th floor Riverside, CA 92502 Dear Mr. Angulo: Recently, the Department of Finance ("DOF") has provided confusing communications regarding the manner in which county auditor-controllers should be distributing property tax revenues pursuant to a successor agency's Recognized Obligation Payment Schedule ("ROPS"). These communications suggest that possibly successor agencies will not be receiving the revenues they need to timely meet their enforceable obligations. This would be contrary to the duty imposed by AB X1 26 and other laws upon successor agencies, county auditor-controllers, and DOF to ensure that all enforceable obligations are timely met. Moreover, we are concerned about statements from DOF suggesting that funds withheld from successor agencies in connection with disputed items on the ROPS should be treated as surplus and distributed to the taxing entities. This would effectively result in an unlawful forFeiture of funds that the successor agency is entitled to receive under AB X1 26. Under Health 8� Safety Code Section 34182(c)(2), "each county auditor-controller shall administer the Redevelopment Property Tax Trust Fund for the benefit of the holders of former redevelopment agency enforceable obligations and the taxing entities that receive pass through payments and distributions of property taxes pursuant to [Part 1.85 of AB X1 26]." Under Health & Safety Code Section 34174(a), the Legislature has stated its clear intent that nothing in AB X1 26 "is intended to be construed as an action or circumstance that may give rise to an event of default under any of the documents governing the enforceable obligations." Health & Safety Code Section 34175(a) further sets forth the Legislature's clear intent "that pledges of revenues associated with enforceable obligations of the former redevelopment agencies are to be honored. It is intended that the cessation of any redevelopment agency shall not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of that pledge." G: rda Vaomca Tapie� Word Fila Succcssor Agrncy 5:I-I: (.cttc to Counry Audnor re RPi'iF.DOCX.doc � j veiwim ox atanm rue � Paul Angulo, CPA, MA, County Auditor-Controller County of Riverside May 21, 2012 Page 2 of 2 Accordingly, it is our position that DOF has no authority under AB X1 26 to prevent the payment of obligations on a successor agency's ROPS as a result of certain disputed items when those disputes have not yet been resolved between DOF, the successor agency and its oversight board. Further, there is no legal authority for DOF to direct the county auditor-controller to not disburse property tax revenues to a successor agency for the July through December 2012 period if DOF has not provided an approval letter to the county auditor-controller by June 1 or the lock-down date, whichever is earlier. This direction may cause the successor agency to default on enforceable obligations to the financial detriment of the holders of enforceable obligations. As described above, a primary purpose of AB X1 26 is to ensure that this disastrous result does not occur. Therefore, it is our position that if DOF disputes items listed on the ROPS for the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") that its Oversight Board approved, or fails to timely inform you of the undisputed enforceable obligations that should be paid from the Redevelopment Property Tax Trust Fund, at the minimum you are required by Health & Safety Code Sections 34182(c)(2), 34174(a) and 34175(a) to distribute property tax revenues to the Successor Agency in the amounts needed to satisfy all but the obligations in dispute and to retain the revenues needed to satisfy the disputed items and place them in a separate escrow or fund pending the outcome of these disputes. Since the Successor Agency and its Oversight Board have not fully exhausted their administrative remedies with respect to any disputed items, the funds related to the disputed items cannot be treated as surplus for distribution to the taxing entities on June 1, but instead must be held by your office pending the final determination of these disputes. We request that you send electronic confirmation to me, at iwohlmuth cityofpalmdesert.ora , by no later than May 25, 2012 describing the manner in which you will distribute property tax revenues on June 1, 2012 so that the Successor Agency can take appropriate actions in response. Sincerely, John M. Wohlmuth Executive Director cc: Ms. Janet M. Moore, Director of Housing Mr. Paul Gibson, Director of Finance Ms. Veronica Tapia, Accountant II Ms. Pam Elias, Chief Accountant, Property Tax Division County of Riverside Ms. Evelyn Suess, Supervisor, Department of Finance Ms. Mindy Patterson, Lead Analyst, Department of Finance SU(CESSOR AGENQ' TO THE Pfll�l �ESERi REOEVEIOPMENI AGENCV G:rda-�Veronita Tapia��Word Fila Successor Agrncy 5•21-1:f.etla lo County Auditor re RPTTP,DOCX.doc .vnNiEoonwEnaioP�+tw � '��- OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE THE TRANSFER OF THE RETENTION BASIN LOCATED ON KANSAS STREET (APN 637-033-001) TO THE CITY OF PALM DESERT SUBMITTED BY: Janet M. Moore, Director of Housing �o,, �- (��5 ` �1 AL�s�vr) ..- BY UVERS�G�T BOARDCS-o� DATE: June 4, 2012 Q� �° � ��-� �. VE�IFIED F�'__;��.�-� CONTENTS: Project Vicinity Map ` C}ri�inal on file with City�terk's Otl-ice ��'� �rc.r+'�1"J��'rsk5 oi n-"TF� Recommendation `+b ��c""-�--� �`"��`�IEd��- a,� a.!I drx�,�m,�-s ��ssczr-�-t-o-t-f.a-ns�� By Minute Motion that the Oversight Board: -�"` �'��p��' ��'a��"� ,�a �4r'S,,�►-#- '� on �p -`-�-aOl'd`�• 1. Authorize the transfer of the retention basin located on Kansas Street (APN 637-033-001) to the City of Palm Desert under Health and Safety Code Section 34181(a); and 2. Authorize the Executive Director and/or Chair of the Successor Agency to execute any documents necessary to facilitate the transfer of the property. Executive Summary In June of 2008, the Palm Desert Redevelopment Agency ("Agency") authorized the acquisition and deconstruction of the subject property. The property was abandoned and in foreclosure when the Agency acquired it and deconstructed the home. Subsequently, the property was converted to a xeriscaped retention basin. The Agency transferred the property to the City of Palm Desert in March of 2011. While it is still unclear whether this property would be subject to the clawback provisions of AB1X26, the Oversight Board may, under Health and Safety Code Section 34181(a) direct the Successor Agency to transfer parcels constructed for a governmental purpose to the appropriate public jurisdiction. Background The property located at 42135 Kansas Street (southwest corner of Kansas Street and Hovley Lane East) had been the site of numerous traffic collisions over the years. The north side of the property is positioned directly in front of the traffic signal where Oasis Club Drive dead ends into Hovley Lane East. The location of the house had proven to be a health and safety issue. In the last collision, a car crashed through the brick wall and ultimately into the back bedroom and patio area of the structure. �� _ _..�.:� . Staff Report —Oversight Board Transfer of Retention Basin 42135 Kansas Street June 4, 2012 Page 2 of 2 The Agency acquired the property to deconstruct the single family dwelling and replace it with a xeriscaped retention basin. This would eliminate the health and safety issues as well as assist with water retention and storm water runoff in the area. The retention basin captures nuisance irrigation runoff and minor storm water flows. Retention of this water in the subsurface system prevents the breeding and growth of mosquitoes, which occurred when this water was allowed to collect in the gutters. The project began in 2010 with the deconstruction of the house. City crews then began the work on the retention basin followed by minor landscape by a landscape contractor. The work was noticed as complete in August 2011. The understanding was that the property would be transferred to the City to maintain as a public improvement. The property was transferred from the Agency to the City in March of 2011. AB1X 26 states that any parcels that were transferred after January 1, 2011 would revert back to the Successor Agency for disposition at the direction of the Oversight Board. While it is unclear whether this parcel would be transferred back, Health and Safety Code Section 34181(a) allows the Oversight Board to direct the Successor Agency to transfer ownership of those parcels constructed for a governmental purpose to the appropriate public jurisdiction. Staff is requesting that the Oversight Board authorize the transfer of the property to the City to confirm the original intended purpose. Prepared By: f--i� L.. - _ ,� anet . Moore, Director of Housing Mark Gre n ood, P.E. irector of Public Works ApprovaL a Paul S. Gibson, Director of Finance J M. Wohlmuth, City Manager/Executive Director G:\rda\HOUSING\Patty Leon\JMM\staff report\OVERSIGHT BOARD\Kansas Street Transfer�Kansas Street transfer confirm 06-04-2012.doc � OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE THE SALE OF FURNITURE, FIXTURES AND EQUIPMENT ASSETS AT THEIR BOOK VALUE TO THE CITY OF PALM DESERT SUBMITTED BY: Janet M. Moore, Director of Housing DATE: June 4, 2012 CONTENTS: Furniture, Fixtures and Equipment Listing Recommendation By Minute Motion that the Oversight Board authorize the sale of the Agency's share of the listed furniture, fixtures and equipment to the City of Palm Desert for the current book value of $13,656.63. Background The former redevelopment agency shared office space, furniture and equipment with the City of Palm Desert. The furniture and equipment were originally purchased with the costs split between the City, Agency and the Housing departments based on the staff's allocation to each department. The attached listing includes the current book value of the Agency's portion of that shared equipment, etc. As part of the wind-down of the redevelopment agency assets are to be sold. The City Manager is recommending that the City purchase the Agency's share of the equipment at its current book value. The sale proceeds from this transaction will go to the Successor Agency and be disbursed pursuant to AB1 X26. Staff requests that the Oversight Board approve the sale of the listed assets to the City of Palm Desert for the book value of$13,656.63. Prepared By: ( �� ane M. Moore, Director of Housing Paul S. Gibson, Director of Finance (,5-o�(,3�o.rc�.11, �►�� y�85'Gnl i) ��C�_ BY OVERSIGH BOARD A vaL• (3N �-'-� -2vl�� VERIFIED BY�O�S.s__�__�_____ Origina( on file with C]ty Clerks Of�ce J M. Wohlmuth, City Manager/Executive Director G:Uda\HOUSING\Patty LeonUMMGstaff reportl0versight BoardlSale of furniture assets to CPD 06-04-12.doc _�.7� Assets of RDA Book Value Machinery and Equipment Jan. 31, 2012 COMPUTER, LAPTOP - COMPUTER, PC - COMPUTER, PC - BROCHURERACK - CHAIR, LOBBY - CHAIR, LOBBY - CHAIR, LOBBY 0.01 CHAIRS, CONFERENCE 18.56 CHAIRS, CONFERENCE 34.08 CHAIRS, CONFERENCE 37.59 CHAIRS, CONFERENCE 39.64 CHAIR, OFFICE 48.09 CMPTR, PC 134.66 CMPTR, PC 269.31 CMPTR, PC 269.31 CMPTR, PC 269.31 CHAIR, OFFICE 91.17 CHAIR, GUEST 83.88 CHAIR, GUEST 112.79 CMPTR, PC 346.84 CHA�R, GUEST 142.14 CHAIR, GUEST 142.14 CHAIR, GUEST 131.26 TRANSCRIBER, DIGITAL 260.16 CMPTR, SCANNER 599.67 CMPTR, SCANNER 615.45 CMPTR, PC 792.81 CMPTR, PC 792.82 CMPTR, PC 792.81 CMPTR, PC 396.41 CMPTR, SCANNER 845.80 TABLE, CONFERENCE 74.74 CREDENZA 32.34 TABLE, CONFERENCE 116.54 CREDENZA 36.63 TABLE, CONFERENCE 113.24 CREDENZA 38.17 TABLE, CONFERENCE 128.69 CREDENZA 40.99 TABLE 7.30 TABLE 9.59 PARTITIONS 760.90 DESK 607.44 TABLE, CONFERENCE 115.88 FILES, TWO 5-DRAWER FLAT FILES 186.19 DESK 2,111.14 TABLE, CONFERENCE 161.96 DESK 871.49 BOOKCASE 255.36 WORKSTATIONS 721.23 Total of: Machinery and Equipment (Net of Depreciation) 13,656.53 3�� OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE THE EXECUITVE DIRECTOR TO EXECUTE CONTRACTS UNDER $5,000 FOR ROUTINE MAINTENANCE AND EMERGENCY MAINTENANCE SERVICES FOR OBLIGATIONS LISTED ON THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) SUBMITTED BY: Heather Buck, Project Coordinator DATE: June 4, 2012 Recommendation By Minute Motion: Authorize the Executive Director to execute contracts under $5,000 for routine maintenance and emergency maintenance services for obligations listed on the Recognized Obligation Payment Schedule (ROPS). Backaround On April 9, 2012, the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency approved the Recognized Obligation Payment Schedule (ROPS) which lists routine maintenance of Agency properties as an obligation of the Agency. By authorizing the Executive Director to execute contracts under $5,000 for routine maintenance, recurring services, and emergency maintenance services staff can quickly and efficiently procure and award contracts as required to maintain the Successor Agency to the Palm Desert Redevelopment Agency properties until disposition. Examples of these maintenance services include, but are not limited to: landscape maintenance, pest control, bee removal, dust mitigation, and utility payments. As a responsibility to obtain the best prices, staff follows the approved purchasing policies as outlined in the Palm Desert Municipal Code. Bids are requested of local providers as well as those outside the area to ensure competitive pricing. The authority for the Executive Director to execute these contracts allows the Agency to operate efficiently, and respond promptly to emergencies. Absence of such authority could potentially result in increased staff time and costs. If the Executive Director is granted this authorization, all executed contracts will be brought back to the Oversight Board as a "receive and file" agenda item. �d Oversight Board Staff Repurt ` Authorize Executive Director to Execute Maintenance Contracts under$5,000 June 4, 2012 Page 2 of 2 Staff recommends approval of this request to facilitate the continued routine, recurring maintenance of the Agency properties. Fiscal Analysis There is no fiscal impact as all items associated with this action are listed on the ROPS. Submitted By: � � � Heather uck, Project Coordinator J net oore, Director of Housing 1 � ��/ rtin Alvarez, Redevelopment Manager Paul S. 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