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Home My WebLink AboutRes SA-RDA 010 - ROPS for 3rd 6month PeriodSUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA -RDA olo ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE THIRD SIX-MONTH PERIOD PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 FOR THE PERIOD OF JANUARY 1, 2013 THROUGH JUNE 30, 2013 SUBMITTED BY: Janet M. Moore, Director of Housing DATE: August 23, 2012 CONTENTS: Resolution SA -RDA o10 Recognized Obligation Payment Schedule (1/1/13 — 6/30/13) Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA -RDA o10 approving the Recognized Obligation Payment Schedule for the third six-month period of January 1, 2013 through June 30, 2013 ("ROPS3"). 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 third Recognized Obligation Payment Schedule ("ROPS3") to be presented to the Successor Agency for approval. Background Pursuant to AB X1 26, the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period (commencing each January 1 and July 1), listing the payments to be made by the Successor Agency during such period. All ROPS must be approved by the Oversight Board. Furthermore, each Oversight Board -approved ROPS must be submitted to the State Department of Finance ("DOF") for review. On June 27, 2012, the Governor signed the State budget trailer bill AB 1484, which became effective immediately. AB 1484 imposes new requirements and deadlines, beginning with the ROPS covering the period from January 1, 2013 through June 30, G\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Staff Report for ROPS3 - 8-23-12.docx Staff Report Approving the Third Recognized Obligation Payment Schedule August 23, 2012 Page 2 of 2 2013 ("ROPS No. 3"). At the same time that the Successor Agency submits a ROPS to the Oversight Board for approval, the Successor Agency must also provide a copy of such ROPS to the DOF, the County Auditor -Controller and the "county administrative officer." A copy of the Oversight Board -approved ROPS must be submitted to the DOF, the Office of the State Controller and the County Auditor -Controller and be posted on the Successor Agency's website. The Successor Agency must submit the ROPS to the DOF electronically in the manner of DOF's choosing. Deadlines for ROPS Submission and Review AB 1484 does not specify a deadline for the Successor Agency to submit ROPS3 to the Oversight Board for approval. However, AB 1484 provides that the Successor Agency must submit an Oversight Board -approved ROPS3 to the DOF, the Office of the State Controller and the County Auditor -Controller no later than September 1, 2012. The DOF may eliminate or modify any items on the ROPS before approving the ROPS. The DOF must make its determination regarding the enforceable obligations and the amount and funding source for each enforceable obligation listed on a ROPS no later than 45 days after the ROPS is submitted. Within five business days of the DOF's determination, the Successor Agency may request to "meet and confer" with the DOF on disputed items. The meet and confer period may vary, but an untimely submission of ROPS3 may result in a meet and confer period of less than 30 days. The County Auditor -Controller may object to the inclusion of any item on the ROPS that is not demonstrated to be an enforceable obligation and may object to the funding source proposed for any item. The County Auditor -Controller must provide notice of its objections to the DOF, the Successor Agency and the Oversight Board by October 1, 2012. Penalties for Failure to Make Timely Submission If the Successor Agency does not submit an Oversight Board -approved ROPS by September 1, 2012, the City of Palm Desert will be subject to a civil penalty of $10,000 per day for every day that the ROPS is not submitted to the DOF. The penalty is to be paid to the County Auditor -Controller for distribution to the taxing entities. If the Successor Agency does not timely submit a ROPS, creditors of the successor agency, the DOF, and affected taxing entities may request a writ of mandate to require the Successor Agency to immediately perform this duty. Additionally, if the Successor Agency does not submit a ROPS within 10 days of September 1st, the Successor Agency's administrative cost allowance for that period will be reduced by 25 percent. If the Successor Agency fails to submit an Oversight Board -approved ROPS to the DOF within five business days of "the date upon which the ROPS is to be used to determine the amount of property tax allocations", the DOF may determine whether the County Auditor -Controller should distribute any of property tax revenues to the taxing entities, or Garda\Veronica Tapia\Word Files\Staff Reports\ Successor Agency\SA Staff Report for ROPS3 - 8-23-12.docx d `6 BY SA -RDA t M. Moore, Director of Housing Staff Report Approving the Third Recognized Obligation Payment Schedule August 23, 2012 Page 2 of 2 whether any amount should be withheld for enforceable obligations pending approval of the ROPS. It is not clear what is "the date upon which the ROPS is to be used to determine the amount of property tax allocations." Staff recommends that the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency adopt Resolution No. SA -RDA 010, approving the Recognized Obligation Payment Schedule for the six-month fiscal period from January 1, 2013 through June 30, 2013 and taking certain related actions. Fiscal Analysis The preparation and submittal of ROPS3 is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from January 1, 2013 to June 30, 2013. Submitted by: App aul S. Gibson, Director of Finance (,41n M. Wohlmuth, Executive Director VERIFIED BY_J Original on file with City Arles Office Garda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Staff Report for ROPS3 - 8-23-12.docx RESOLUTION NO. SA -RDA 010 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE SIX-MONTH FISCAL PERIOD FROM JANUARY 1, 2013 THROUGH JUNE 30, 2013, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code Section 34177(1), the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") must prepare a proposed Recognized Obligation Payment Schedule ("ROPS") before each six-month fiscal period (commencing each January 1 and July 1) and submit each proposed ROPS to the oversight board for the Successor Agency (the "Oversight Board") for approval. B. Pursuant to Health and Safety Code Section 34177(I)(2)(B), at the same time that the Successor Agency submits a ROPS to the Oversight Board for approval, the Successor Agency must submit a copy of such ROPS to the State Department of Finance (the "DOF"), the County administrative officer, and the County Auditor - Controller. C. Pursuant to Health and Safety Code Section 34177(I)(2)(C) and (m), the Successor Agency must (1) submit the Oversight Board -approved ROPS for the six- month fiscal period from January 1, 2013 through June 30, 2013 ("ROPS3"), to the DOF, the Office of the State Controller, and the County Auditor -Controller no later than September 1, 2012; and (2) post a copy of the Oversight Board -approved ROPS3 on the Successor Agency's website. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (THE "BOARD"), HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to the provisions of Health and Safety Code Section 34177. Section 3. The Board hereby approves proposed ROPS3, substantially in the form attached hereto as Exhibit A. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify ROPS3 as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving ROPS 3 DOCX RESOLUTION NO. SA -RDA 010 Section 4. Staff is hereby authorized and directed to submit a copy of ROPS3 to the Oversight Board for approval and, at the same time, transmit a copy of ROPS3 to the DOF, the County Auditor -Controller and the County administrative officer as designated by the County. Section 5. Staff is hereby authorized and directed to submit a copy of Oversight Board -approved ROPS3 to the DOF, the Office of the State Controller, and the County Auditor -Controller. If the Oversight Board has not approved ROPS3 by September 1, 2012, Staff is hereby authorized and directed to transmit ROPS3 to the DOF, the Office of the State Controller, and the County Auditor -Controller by September 1, 2012, with a written notification regarding the status of the Oversight Board's review. Written notice and information regarding the action of the Oversight Board shall be provided to the DOF by electronic means and in a manner of DOF's choosing. Section 6. Staff is hereby authorized and directed to post a copy of the Oversight Board -approved ROPS3 on the Successor Agency's Internet website (being a page on the Internet website of the City of Palm Desert). Section 7. The officers and the staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 23rd day of August, 2012. AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 2 G \rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving ROPS 3.DOCX RESOLUTION NO. SA -RDA 010 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (January 1, 2013 through June 30, 2013) G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving ROPS 3.DOCX