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Home My WebLink AboutRes OB-138 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation STAFF REPORT APPROVE RESOLUTION NO. OB- 138 A RESOLUTION APPROVING THE EXECUTION OF A SUPPLEMENTAL NON - HOUSING BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT AND TAKING CERTAIN RELATED ACTIONS Veronica Tapia, Management Analyst II January 25, 2016 Resolution No. OB- 138 Draft Bond Proceeds Funding Agreement (CONTRACT NO. SA34190A) By Minute Motion that the Oversight Board: 1. Waive further reading and adopt Resolution No. OB-138 approving the execution of a Supplemental Non -Housing Bond Proceeds Funding Agreement between the Successor Agency and the City of Palm Desert and taking certain related actions Background To date, several Bond Proceeds Funding Agreements have been approved for various redevelopment projects throughout the City. The remaining eligible bond projects listed on the tax certificate require a Bond Proceeds Funding Agreement in order to move forward with their progress. Pursuant to dissolution law, only existing contracts have been eligible for payment from ROPS, until a Finding of Completion is received by the Successor Agency. The DOF issued our Finding of Completion on May 15, 2013, which provides the ability for the Successor Agency to utilize existing bond funds for the purpose in which they were issued; however in order to spend these funds, the project must be included on an approved ROPS. Therefore estimated project needs have been included on ROPS 16- 17. Staff recommends approval of the Non -Housing Bond Proceeds Funding Agreement for the remaining non -housing projects listed under the existing bonds (See Exhibit B), between the Successor Agency and City and taking certain related actions. G \rda\Veronica Tapla\Word Files\Staff Reports\Oversight Board\Staff Reports\OB SR -Supplemental Non -Housing Bond Proceeds Retmb Agmt 1-25-16 docx Staff Report Supplemental Non -Housing Bond Proceeds Funding Agreement Page2of2 January 25, 2016 Fiscal Analysis The estimated costs for each project are listed on the current and subsequent ROPS. Although the City may initially advance the funds for this purpose, it is the intention of the Successor Agency to reimburse the City for the costs from bond proceeds as included in the bond covenant. Upon approval of ROPS 16-17, reimbursement if necessary, will occur immediately after July 1, 2016. Pre•ared By: eronica Tapia, Managelinent Analyst Paul S. Gibson, Director of Finance n M. Wohlmuth • Manager/Executive Director of the ccessor Agency of the Palm Desert `� edevelopment Agency Department Head: oore, Director of Housing e4e-- Rudy Acosta, Assistant City Manager (`-f -0 1 3uc k, Knncamon BY OVERSIGHT BOARD ON I -'..-� - ;, l p VERIFIED BY Original on file with City Clerk's Office A TJ G \rda\Veronica Tapia\Word Files \Staff Reports\Oversight Board\Staff Reports\OB SR -Supplemental Non -Housing Bond Proceeds Re,mb Agmt 1-25-16 docx RESOLUTION NO. oB - 138 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE EXECUTION OF A SUPPLEMENTAL NON -HOUSING BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND THE CITY OF PALM DESERT RECITALS: A. On February 12, 2015, this Board of Directors (the "Board") of the Successor Agency of the Palm Desert Redevelopment Agency (the "Successor Agency"), adopted Resolution No. SARDA-041, approving the Successor Agency's execution and delivery of a Consolidated Non -Housing Bond Proceeds Funding Agreement (the "Consolidated Agreement"), into by and between the Successor Agency and the City of Palm Desert (the "City"). B. On February 23, 2015, the Oversight Board of the Successor Agency (the "Oversight Board") adopted Resolution No. OB-115, approving the Successor Agency's execution and delivery of the Consolidated Agreement. C. As evidenced by a letter, dated May 15, 2015, from the California State Department of Finance (the "DOF"), the DOF reviewed and approved Resolution No. OB-115. D. The Consolidated Agreement pertains to unspent proceeds of bonded debt (the "Former RDA Bonds") incurred by the former Palm Desert Redevelopment Agency (the "Former RDA") before January 1, 2011. E. The Successor Agency desires to use unspent proceeds of the Former RDA Bonds for the Projects (as defined, and described, in the Consolidated Agreement). F. In light of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City with respect to the awarding of public works contracts, the Successor Agency and the City entered into the Consolidated Agreement to provide for the transfer of certain unspent proceeds of the Former RDA to the City, for the City to perform (or caused to be perform) work with respect to the Projects. G. There is $3.35 million of unspent proceeds of the Former RDA Bonds in the Successor Agency's accounts (the "Remaining Bond Proceeds") which have not been transferred to the City pursuant the Consolidated Agreement. H. The Successor Agency is proposing to provide for the transfer of the Remaining Bond Proceeds to the City for application towards the Projects pursuant to a Supplemental Non -Housing Bond Proceeds Funding Agreement (the "Supplemental Agreement") to be entered into by and between the Successor Agency and the City. G:\rda\Veronica Tapia\Word Files\Staff Reports\Oversight Board\Palm Desert - OB reso - Supplemental Non -Housing Bond Proceeds Funding Agreement 1-25-16.docx 1 RESOLUTION NO. os — 138 NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Supplemental Funding Agreement. This Oversight Board hereby approves the Successor Agency's execution and delivery of the Supplemental Funding Agreement, substantially in the form attached hereto as Attachment I. Section 3. Other Acts. The officers and staff of the Successor Agency are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the Supplemental Funding Agreement. PASSED, APPROVED and ADOPTED this 25th day of January, 2016. ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G:\rda\Veronica Tapia\Word Files\Staff Reports\Oversight Board\Palm Desert - OB reso - Supplemental Non -I lousing Bond Proceeds Funding Agreement 1-25-16.docx RESOLUTION NO. OB — 138 CONTRACT NO. SA34190A ATTACHMENT I Supplemental Non -Housing Bond Proceeds Funding Agreement (in substantial final form) (see attached) G:\rda\Veronica Tapia\Word Files\Staff Reports\Oversight Board\Palm Desert - OB reso - Supplemental Non -I lousing Bond Proceeds Funding Agreement I-25-16.docx RESOLUTION NO. OB - 138 CONTRACT NO. SA34190A SUPPLEMENTAL NON -HOUSING BOND PROCEEDS FUNDING AGREEMENT This SUPPLEMENTAL NON -HOUSING BOND PROCEEDS FUNDING AGREEMENT (this "Agreement"), dated as of , 2016, is entered into by and between the City of Palm Desert (the "City") and the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency," and together with the City, the "Parties"). RECITALS: A. On February 12, 2015, the City Council of the City adopted Resolution No. 2015- 09, approving the City's execution and delivery of a Consolidated Non -Housing Bond Proceeds Funding Agreement (the "Consolidated Agreement"), by and between the Successor Agency and the City. B. On February 12, 2015, the Board of Directors of the Successor Agency adopted Resolution No. SARDA-041, approving the Successor Agency's execution and delivery of the Consolidated Agreement. C. On February 23, 2015, the Oversight Board of the Successor Agency (the "Oversight Board") adopted Resolution No. OB-115, approving the Successor Agency's execution and delivery of the Consolidated Agreement. D. As evidenced by a letter, dated May 15, 2015, from the California State Department of Finance (the "DOF"), the DOF reviewed and approved Resolution No. OB-115. E. The Consolidated Agreement pertains to the unspent proceeds of bonded debt (the "Former RDA Bonds") incurred by the former Palm Desert Redevelopment Agency (the "Former RDA") before January 1, 2011. F. The Successor Agency desires to use the unspent proceeds of the Former RDA Bonds for the Projects (as defined, and described, in the Consolidated Agreement). G. In light of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City with respect to the awarding of public works contracts, the Successor Agency and the City entered into the Consolidated Agreement to provide for the transfer of certain unspent proceeds of the Former RDA to the City, for the City to perform (or caused to be performed) work with respect to the Projects. H. There is $3.35 million of unspent proceeds of the Former RDA Bonds in the Successor Agency's accounts (the "Remaining Bond Proceeds") which have not been transferred to the City pursuant the Consolidated Agreement. I. The Successor Agency and the City are entering into this Agreement to provide for the transfer of the Remaining Bond Proceeds to the City for application towards the Projects. J. [Resolution No. adopted by the Oversight Board on January , 2016 approving the Successor Agency's execution and delivery of this Agreement was approved [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2016. -1- G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Palm Desert - Supplemental Non -Housing Bond Proceeds Funding Agreement 1-25-16.docx RESOLUTION NO. OB — 138 CONTRACT NO. SA34190A NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. Capitalized terms used but not defined herein have the meanings ascribed to them in the Consolidated Agreement. Section 2. Subject to the provisions of this Agreement and the Consolidated Agreement (together, the "Funding Agreements"), and with the funding provided pursuant to the Funding Agreements, the City agrees to perform or cause to be performed all work required for the completion of the Projects, including but not limited to the preparation of designs, plans and specifications and all acquisitions, demolitions, construction and installations. The City shall perform such work in accordance with all applicable federal, state and local laws, rules and regulations. Subject to the covenants set forth herein, the City shall have the sole discretion with respect to the design, planning, specification and the timing with respect to all components of the Projects. Section 3. (a) The Successor Agency has submitted to the Oversight Board and the DOF, a ROPS ("ROPS 16-17") for the period commencing July 1, 2016 through June 30, 2017 (the "ROPS 16-17 Period"). Included in ROPS 16-17 as Item Nos. 182, 183 and 185 are the transfers to the City of the Remaining Bond Proceeds for the costs of the Projects (which amount includes estimated interest earnings through the date of transfer under Section 3(b)). (b) At the commencement of the ROPS 16-17 Period, the Successor Agency shall transfer to the City the Remaining Bond Proceeds, subject to any adjustment required by the DOF with respect to ROPS 16-17. Section 4. To the extent the City still holds unspent Remaining Bond Proceeds transferred pursuant to this Agreement after the completion of the Projects (as determined by the legislative body of the City), the City shall return such unspent Remaining Bond Proceeds to the Successor Agency within a reasonable time after such determination. Section 5. The City covenants to use the Remaining Bond Proceeds transferred pursuant to this Agreement in a manner consistent with the covenants in the Loan Agreements and the tax certificates relating to the Authority Bonds, including, but not limited to, any covenants regarding the tax-exempt status of interest on the Authority Bonds under the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. Section 6. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 7. The Parties agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 8. This Agreement may be amended from time to time by written instrument executed by both Parties. Section 9. No official, agent, or employee of the Successor Agency or the City, or members of the City Council, or members of the Successor Agency Board of Directors or -2- G:\rda\Veronica'1'apia\Word Files\Staff Reports\Successor Agency\Palm Desert - Supplemental Non -Housing 13ond Proceeds Funding Agreement 1-25-16.docx RESOLUTION NO. OB - 138 CONTRACT NO. SA34190A Oversight Board shall be individually or personally liable for any payment hereunder in the event of any default or breach by the Successor Agency or the City, or for any amount which may otherwise become due to the City or Successor Agency, or successor thereto, or on any obligations under the terms of this Agreement. Section 10. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By JOHN WOHLMUTH, EXECUTIVE DIRECTOR ATTEST: RACHELLE D. KLASSEN, SECRETARY TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT By ATTEST: RACHELLE D. KLASSEN, CITY CLERK ROBERT A. SPIEGEL, MAYOR -3- G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Palm Desert - Supplemental Non -Housing Bond Proceeds Funding Agreement I-25-I6.docx RESOLUTION NO. OB — 138 CONTRACT NO. SA34190A !APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By Date: ROBERT A. SPIEGEL, CHAIR -4- G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Palm Desert - Supplemental Non -Housing Bond Proceeds Funding Agreement I-25-I6.docx