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Home My WebLink About07A SA-RDA 003 - Adopt Enforcable Obligation Pymnt SchdlSUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA -RDA 003 APPROVING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 FOR THE PERIOD JANUARY 1, 2012 THROUGH JUNE 30, 2012 SUBMITTED BY: Janet M. Moore, Director of Housing DATE: February 23, 2012 CONTENTS: Resolution No.SA-RDA 003 Enforceable Obligation Payment Schedule (EOPS) Recommendation By Minute Motion: waive further reading and adopt Resolution No. SA - RDA 003 , adopting an Enforceable Obligation Payment Schedule (EOPS) for the period January 1, 2012 through June 30, 2012. Executive Summary Pursuant to Health and Safety Code Section 34177, successor agencies are required to make all payments on obligations that are due for the former Redevelopment Agencies pursuant to an Enforceable Obligation Payment Schedule (EOPS). Only payments listed on the EOPS shall be made. Background Health and Safety Code Section 34177, as modified by the California Supreme Court, provides that successor agencies are required to continue to make payments due for enforceable obligations during the first six months of the former redevelopment agencies. On January 26, 2012 the Redevelopment Agency approved Resolution No. 594 approving the required Enforceable Obligation Payment Schedule (EOPS). This schedule provides the ability for the successor agency to continue to make the payments due from the former Redevelopment Agency. Additionally, the successor agency must adopt a Recognized Obligation Payment Schedule for the same period that is then submitted for approval to the oversight board. Until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an enforceable obligation payment schedule can be made. Staff Report Resolution NO. SA -RDA 003 February 23, 2012 Page 2 of 2 Adopting the Enforceable Obligation Payment Schedule The enforceable obligation schedule may be amended by the successor agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board has sufficient members to form a quorum. Staff recommends that the Board of Directors of the Successor Agency to the Palm Desert Redevelopment Agency adopt Resolution No. SA -RDA 003 , approving the Enforceable Obligation Payment Schedule. Fiscal Analysis Adoption of an enforceable obligation payment schedule will allow the Successor Agency to pay enforceable obligations of the former redevelopment agency. Submitted by: planet M. Moore, 9irector of Housing Approval: Paul S. 'recto f Finance J€ hn Wohlmuth, Executive Director Department Head: McCarthy, Assistant 1, Manager 'Eri +0- ODA to- O fciottan_pj, 90! D 13Y _2 n) ice Givda.Veronica Tapia' Word FilesStaff Reports,EOPS 2-23-12 Staff Report.doc RESOLUTION NO. SA -RDA 003 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. AB X1 26 and AB X1 27 were signed by the Governor of California on June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law"), including adding Part 1.8 (commencing with Section 34161) ("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85"). B. The California Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861)) alleging that AB X1 26 and AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its opinion in the Matosantos case largely upholding AB X1 26, invalidating AB X1 27, and holding that AB X1 26 may be severed from AB X1 27 and enforced independently. C. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 arising before May 1, 2012, to take effect four months later. D. As a result of the Supreme Court's decision, the Palm Desert Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the City of Palm Desert (the "City"), created pursuant to the Redevelopment Law, was dissolved pursuant to Part 1.85 on February 1, 2012. E. By its Resolution No. 2011-76, adopted on August 25, 2011, the City Council of the City made an election to serve as the successor agency for the Redevelopment Agency under Part 1.85 (the 'Successor Agency"). F. By its Resolution No. 001, adopted on February 9, 2012, the City Council, acting as the governing board for the Successor Agency, established rules and regulations applicable to the governance and operation of the Successor Agency, and pursuant to such resolution provided that the Successor Agency will be governed by a Board of Directors (the "Board") consisting of the members of the City Council of the City. fi. rrin, Vrrnnira Tanin Wnrri Fi1nc‘Ctaff Rrnnrtc,Cnrrreenr Aurnry Rrcnhnnnn re, Arinntino POPSI "J TV1CX RESOLUTION NO. SA -RDA 003 G. By its Resolution No. 594, the Redevelopment Agency approved an Enforceable Obligation Payment Schedule, as amended. H. Health and Safety Code Section 34177(a) provides that successor agencies are required to continue to make payments due for enforceable obligations. Health and Safety Code Section 34177(a)(1), as modified by the Supreme Court, provides that on and after February 1, 2012, and until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an enforceable obligation payment schedule shall be made. The enforceable obligation schedule may be amended by the successor agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board has sufficient members to form a quorum. I. Accordingly, the Board desires to adopt this Resolution adopting an enforceable obligation schedule. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34177. Section 3. The Board hereby adopts the enforceable obligation payment schedule attached as Exhibit A to this Resolution and incorporated herein by reference (the "Enforceable Obligation Payment Schedule"). Section 4. The Secretary is hereby authorized and directed to post the Enforceable Obligation Payment Schedule on the City's web site. Section 5. The Enforceable Obligation Payment Schedule may be amended from time to time at any public meeting of the Board. Section 6. The Secretary is hereby authorized and directed to transmit a copy of the Enforceable Obligation Payment Schedule by mail or electronic means to the County Auditor -Controller, the State Controller, and the California Department of Finance (the "Department of Finance"). A notification providing the Internet Web site location shall suffice. Section 7. The officers and 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 providing documents associated with the Enforceable Obligation Payment Schedule to the -2- r. rna;Vornnira Tania Wnrri F.1Pc Ctaff RPnnrt ,CnnrPcenr AnPnry Recnin;nn rP Arinnt;nn Fn➢C nnCX RESOLUTION NO. SA -RDA oo3 Department of Finance and the State Controller in the manner of their choosing, and any such actions previously taken by such officers are hereby ratified and confirmed. The Board hereby designates the Director of Finance as the official to whom the Department of Finance may make requests for review in connection with the Enforceable Obligation Payment Schedule. PASSED, APPROVED AND ADOPTED this 23rd day of February, 2012. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Robert A. Spiegel, Chairman -3- r,•,rrla V, rnnina Tania, Wnrri Filrc,craff RrnnnmQnrrrccnr Ao ,,CV RPen111hnn re Adnntin° F(1Gc n?7_I9 TDflCY RESOLUTION NO. SA -RDA 003 EXHIBIT A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Exhibit A R 1000-0172\1420207v2.doc