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Home My WebLink AboutRes SA-RDA 008 - Revisions of ROPSSUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION SA-RDA-008 APPROVING REVISIONS TO "EXHIBIT A" OF RESOLUTION NO. SA- RDA-007, THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2012 THROUGH DECEMBER 31, 2012 TO INCLUDE THE FUNDING SOURCE FOR SPECIFIC LINE ITEMS SUBMITTED BY: Janet M. Moore, Director of Housing DATE: June 28, 2012 CONTENTS: Resolution SA-RDA 008 List of Line Item Revisions -"Exhibit A" to SA-RDA 008 Resolution SA-RDA 007 Dept of Finance Letters Dated April 26, 2012 and May 26, 2012 Recommendation By Minute Motion that the Successor Agency Board Adopt Resolution SA-RDA 008 approving Revisions to "Exhibit A" of Resolution No. SA- RDA-007, the Recognized Obligation Payment Schedule for the period of July 1, 2012 through December 31, 2012 ("ROPS2"), more specifically, Project Area #1 Line items 1, 2, 3, 4, 5, 7, 8, 10, 25, and 33; Project Area #2 Line items 1, 2, 3, 8 and 45; Project Area #3 Line items 1, 2, 3 and 25; and Project #4 Line items 1, 2, 3, 4 and 27 to include the specific funding source. Executive Summary After clarifications and interpretations provided by the Department of Finance ("DOF") regarding the requirements to identify specific sources and amounts for enforceable obligations on ROPS2, staff has identified the line items that are to be revised to include specific amounts from specific sources. The totals for enforceable obligations previously identified on ROPS2 have not changed, only the funding sources, as noted. The source of payment definitions for "C" has also been modified to further clarify where the funds are coming from to make each payment. Backqround The Successor Agency and the Oversight Board approved, ROPS2, on March 22, 2012 and April 9, 2012 respectively. As part of each payment schedule, it is required that the Successor Agency identify a funding source(s) for each obligation. -1- 12812-0001\1467884v1.doc Staff Report Adopt Resolution No. SA-RDA 008 June 28, 2012 Page 2 of 2 The DOF has since clarified that all agencies must identify the specific amounts related to the specific funding sources that will be used to make payments on enforceable obligations. Because the Successor Agency to the Palm Desert Redevelopment Agency has reserved funds to make timely payments for obligations, including debt service and administrative costs, during the six-month period covered by ROPS2, we need to amend the funding source for these specific line items and amounts. In addition, DOF has disallowed certain obligations, in whole or in part, on the ROPS. Staff is preparing a formal response to the DOF regarding the items that are to be reconsidered. These items are listed in their April26, 2012 and May 26, 2012 letters (attached) and are not addressed in the revisions that are the subject of this staff report. A list of the revised line items is attached. The total amount for the obligations previously reviewed and approved on ROPS2 has not changed. Staff recommends that the Successor Agency approve Resolution SA-RDA-008 approving revisions to ROPS2 with respect to funding sources for specific line items as follows: Project Area #1 Line items 1, 2, 3, 4, 5, 7, 8, 10, 25, and 33; Project Area #2 Line items 1, 2, 3, 8 and 45; Project Area #3 Line items 1, 2, 3 and 25; and Project #4 Line items 1, 2, 3, 4 and 27. The Oversight Board will review these revisions at its meeting of June 26, 2012. An oral report will be provided to the Successor Agency upon request. Fiscal Analysis The revised line items specified above specifically identifies the funding sources for each payment. There are no changes or additions to the amounts due for the obligations previously reviewed and approved on ROPS2. Submitted by: ,� an t M. Moore, Director of Housing _ '/./ l V Appr I: Paa� S Gibson, Director of Finance J n M. Wohlmuth, Executive Director � � \ V G % �C� BY SA-RDA �I'� " �" �� '��:� �3Y. %�-��L.� 5�.. 9 o-e d'� ✓'��: . . n . . . �� t� � ,,-:��s � ;�:r , , ..r�� -2- 12812-0001\1467884v1.doc G:Uda�HOUSING�Patty LeonUMM\staff report\OVERSiGHT BOARDULOPS2 revisions 6-28-12 revl.doc RESOLUTION NO. SA — RDA 008 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING REVISONS TO "EXHIBIT A" OF RESOLUTION NO. SA-RDA-007, THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE SECOND SIX-MONTH PERIOD OF JULY 1, 2012 TO DECEMBER 31, 2012 RECITALS: A. As a result of the California Supreme Court's decision on AB X1 26, the Palm Desert Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the City of Palm Desert (the "City"), created pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et se�c .), was dissolved pursuant to Part 1.85 of AB X1 26 on February 1, 2012. B. 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"). C. 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. D. In accordance with Health and Safety Code Section 34177(I), as modified by the California Supreme Court, on March 22, 2012 the Successor Agency adopted Resolution SA-RDA-007 approving the recognized obligation payment schedule for the period July 1, 2012 through December 31, 2012 (the "ROPS2") for the enforceable obligations of the former Redevelopment Agency. On April 9, 2012 the Oversight Board of the Successor Agency approved the ROPS2. The State Department of Finance ("DOF") in a letter dated May 26, 2012, with certain exceptions identified in its letter of April 26, 2012, approved the ROPS2. E. According to direction from the DOF, for enforceable obligations with multiple funding sources, the ROPS2 is required to identify specific amounts from specific funding sources for each such obligation. F. In addition to revising the ROPS2 to identify multiple funding sources as described above, staff has recommended that the ROPS2 be revised to identify the funding source as cash on hand for certain obligations. -1- 12812-0001\1467904v1.doc RESOLUTION NO. SA — RDA 008 G. Accordingly, the Board desires to adopt this Resolution approving revisions to ROPS2 as follows: Project Area #1 Line items 1, 2, 3, 4, 5, 7, 8, 10, 25, and 33; Project Area #2 Line items 1, 2, 3, 8 and 45; Project Area #3 Line items 1, 2, 3 and 25; and Project #4 Line items 1, 2, 3, 4, and 27. 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. The Board hereby approves the revisions to ROPS2, attached hereto as Exhibit A and incorporated herein. Section 3. 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 and any such actions previously taken by such officers are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 28th day of June, 2012. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Robert A. Spiegel, Chairman Rachelle D. Klassen, Secretary SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY -2- 12812-0001\1467904v1.doc G:Uda\Successor Agency to PDRDA\S[aff Reports and ResoWtionsUtesolution Amending specific lines ROPS2 SA-RDA 008.doc EXHIBIT A REVISIONS TO SPECIFIC LINE ITEMS ON THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE SECOND SIX-MONTH OF PERIOD JULY 1, 2012 TO DECEMBER 31, 2012 Exhibit A 12812-0001\1467904v1.doc RESOLUTION NO. SA - RDA oo� A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY T� THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE SECOND RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. AB X1 26 and AB X1 27 were signed by the Governar of California on June 29, 2011, making certain changes to the Cammunity Redevefopment 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 Caiifornia Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (Califomia Redevelopment Associafion, 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 ob{igations in Part 'l.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 Gity 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. G 4d�\Vttania Tepia\Word Fi1es�,Suff RepunslSucucwr �gency rewtu�ion approving ROPS2 ]-22-12 dou RESOLUTION NO. SA-RDA oo� G. Heaith and Safety Code Section 34177(1), as modified by the CaJifornia Supreme Court, provides that the Successor Agency must prepare a Recognized Obligation Payment Schedule for the enfo�ceable obligations of the farmer Redevelopment Agency, in accordance with the requirements of paragraph (I). The Recognized Obligation Payment Schedule must be submitted to and approved by the oversight board. Finally, after approval by the oversight board, a copy of the approved Recognized Ol�ligation Payment Schedule must be submitted to the county auditor- controller, the State Controlfer and the State Department of Finance ("DOF"), and be posted on the Successor Agency's web site. The second Recognized Obligation Payment Schedule submitted to the State Controller and the DOF will be for payments for the period of July 1, 2012 to December 31, 2012, inclusive. H. Accordingly, the Board desires to adopt this Resolution approving the second Recognized Obligation Payment Schedule in accordance with Paragraph G. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND 4RDERS AS FfJLLOWS: Seetion 1. of this Resolution, Section 2. Seetion 34177. The above recitals are true and correct and are a substantive part This Resolution is adopted pursuant to Health and Safety Code Section 3. The Board hereby approves the second Recognized Obligation Payment Schedule substantially in the form attached as Exhibit A to this Resolution and incorporated herein by reference (the "ROPS2"). The Executive Director of the Successor Agency, in consu{tation wi#h the Successor Agency's legal counsel, may modify the ROPS as the Executive Director o� the Successor Agency's legal counse! deems necessary or advisable. Section 4. The Board hereby designates Paul Gibson as the official to whom the DOF inay make requests for review in connection with the ROPS2 and who shall provide the DOF with the telephane number and e-mail contact information for the purpose of communicating with the DOF. � -2- G Yda\Vaorou T�pia\Word FilesVStaH`� Repons�Sueceswr y�ency rcwlution approving ROPS7 7•1]-12 docx RESOLUTION NO. SA-RDA o07 Section 5. 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 submitting the certified Recognized Obligation Payment Schedule to the oversight board for approval, and any such actions previously taken by such officers are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTEQ this 22nd day of March, 2012. AYES; sErtsoN, FINERTY, BARNIR, Lat00NEN, and SPiEGEL NOES: xox� ABSENT: Nor� ABSTAIN: Norr� � • � / / .�� 1�',�... ��7 -..- • . -.- , t ATTEST: R chelle D. Klassen, S�cretary SUCCSSSOR AGENCY TO THE PALI� DESERT REDEV@LOPliLNT AGENCY -3- G:4dalVeronia Tapie�Wad Files�SlaRReponalSuacessnr a�{mey resolmion approtiry� ROP52 ]-22-12,docx RESOLUTION NO. 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O O U d' C.1 d' U U y�I 9 E V Y y �� n V � � � � 6 U + � ��yy��e � �3 a � o G� 6 6 6 G 6 p p 6 6 6 6�S fi,S �� O �; O = G{ G{ L{ � fi � £ S £ § 5 fi £ � � � o a 4 � � « � O �tt�r��x�tt�� 5 ; Y � a n'�°ab°��uaa�°��°�� F �� . � tV M O �n �O 1� m P O � N n f h!O 1� CD W O � lV t7 N N N ��~T Q�,n � a �1 a �� Z o t►� � � DEPARTMENT OF EoMUNn G. 6�owH JR. - GOVERNOR c�<«aN�� F I N A N C E 9 7 g L HTRtiT � mACMMEN70 CA � 96g 1 4-3706 � WWw,oGF.cw.00v Apri126, 2012 Veronica Tapia, Accountant City of Palm Desert 73-510 Fred Waring Drive Paim Desert, CA 92260 Dear Ms. Tapia: Pursuant to Heaith and Safety Cade (HSC) section 34177 (I) (2) {C), the City of Palm Desert Successor Agency submitted a Recognized Obiigation Payment Schedule (R4PS) to the Califomia Department of Finance {Finance) on April 11, 2412 for the periods January through June 2012 and July through December 2012. Finance staff cantacted you for ciarification of items tisted in the ROPS. HSC section 34171 (d} lists eniorceable obligation {EO) characteristics. Based on a sample of line items reviewed and appiication of the law, the following da not qualify as EOs: January throu�h June 2012 ROPS: • The following Iine items were for pass-thru tn�st account obligations totaling $6Q.5 miliion. HSC seciion 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 Number 25 45 25 27 Project 1 2 3 4 Page Number 1 5 8 12 Pass-Thru Trust Acct Pass-Thru Trust Acct Pass-Thru Trust Acct Pass-Thru Trust Acct Tvtal on on on Amount �39.862.122 6,549,775 0.435.341 • The foilowing line items are fo� agreements or contracts between the City of Palm Desert and the Palm Desert Redeve�opment,�qency (RDA} totaling $13.5 million. HSC section 34171 (d) {2) states that agreements �r 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 cceation of the RDA. Ms. Veronica Tapia Aprif 26, 2012 Page 2 Item P�oject Page Number Area Numi�er Pro'ect Amount 5 2 4 North S here Hotel Land $5,500,000 North Sphere 6 2 4 Property Acquisitian 2,055,000 City Loan for formation of 7 2 4 Pr�'ect Area No.2-1986 6,000,000 ____ Totai $13,555,000 • The follawing 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 27, 2011. It is our understanding that cont�acts for these line items were awarded after June 27, 2011. item Project Page Number Area Number Pro'sct Amount Alessandro Aliey Frontage 46 1 2 Rd Im s $S,OOO,OQO Core Commercial Parking 47 i 2 Improvements 1�000,000 President's Plaza Pa�icing 48 1 2 Lot Im s 1,2Q0,000 49 1 2 Under round Utilities 10 040,000 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-101m s 16,800,000 52 2 6 Unde round Utilities 12,OQ0,000 30 3 9 Portola Ave OnlOff Ramp 8,200,000 Construction 31 3 9 Under round Utilities 2,000 000 32 3 9 Ponola Avenue Widenin 5,000,000 32 4 12 Carios Orte a�ilas 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 cost claimed exceeds allowance by $708.712 (see Attachment A). HSC section 34171 (b) limits fiscal year 2011-12 administrative expenses to five percent of property tax aitocated to the successor agency or $250,000, whichever is greater. Ms. Veronica Tapia April 26, 2012 Page 3 Julv to December 2012 RC7PS: • The fotlowing line items were for pass•thru trust account obligations totaling $12.4 million. HSC section 34183 {b) prohibits a RDA fram 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 Projeat Page ----- Number Area Number Pro'ect Amount 25 _ 1 1 Pass-Thru Trust Acct Obli ation $8,667,301 45 2 5 Pass-Thru Trust Acct C?bligation 250,169 25 3 S Pass-Thru Trust Acct Obli ation 532,295 27 4 __12 Pass-Thru Trust Acct Obli ation 2,990,664 Totai $12,440,429 The foliowing line items are for agreements or contracts beiween the City of Palm Desert and the Paim Desert RDA totaling $13.5 million. HSC section 34'f71 (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 finro years of the date of the creation of the RDA. Additionaily, these line items were shown as payments in the January to June 2012 ROPS. Item Projeat Page Number Area Number Pro'ect Amount 5 2 4 North S here Hotei 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 � T_T Tota( $13,555,OOQ • The foltawing line items are for projects that do not have contracts in piace 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 27, 2011. Ms. Veronica Tapia April 26, 2012 Page 4 As authorized by HSC section 34179 (h), Finance is returning your ROPS for your reconsideration. This action will cause the specific ROPS items noted above to be i�effec,�tive until Finance approval. Furthermore, items I'�sted on future ROPS will be subject #o review and may be denied as EOs. lf 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 to Evefyn Suess, Supervisor or Mindy Patterson, Lead Analyst at {91 fi) 322-29$5. Sincerefy, ��l�z� 1,��"�'�" MARK HILL Program Budget Manager cc: Ms. Janet Moare, 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. Jennife� Baechel, Business Process Analyst II, County of Riverside • Administrative expenses tataling $613,182 (Attachment B}. HSC section 34171 (b) limits administrative expenses to three percer�t of property tax allocated to the successor agency or $250,000, whichever is greater. ATTACHMENT A ADMINISTRATIVE COST CALCULATION For the Period January — June 2012 P�oject Line Area ttem Pra'ect NamelDebt Obil ation 1 1 2002 Tax Allocation Refunding 9ond issue 1 2 2003 Tax Allocation Bond Issue -$19.000,000 1 3 2004 Tax Allocatlon Bond Issue -$24,945,000 1 4 2006 Tax Ailocation Bond issue -$62,320,004 1 5 2007 7ax Allocation Bond Issue -$32,600,400 � 7 2002 Hausing Tax AllocaCwn Bond Issue -$12M 1 g 2007 Housing Tax Allocatton Bond issue -$87M 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 g Indtan Springs Stipulated Agreement �p UM Housing Fund Loan � 25` Pass-thnt trust account obligations 28 Energy Independence Program 32 Stlpulated Judgment Case No. 51124 33 Rep�acement Reserve Fund 39 PDHA Property Management 42 PDHA Property Maintenance 43 Agency Owned Properties 44 Additlonal DisGosures on TAB's 51 NSP Rehabilitation 52 Santa Rosa Apartments 1 2002 Tax Allocatian Refundin Bond Issue -$17 2 2003 Tax Ailocation Bond Issue -$15M 3 2006 Tax Ailocation Bond Issue -$67M 4 County CIP Reimbursement for 88/89 and 90/91 5* North Sphere Hotel land g* North Sphere Property Acquisition 7* City Loan formatien of Project Area No. 2-1986 g UM Housing Loan g2 S`tipulated Judgment Case No. 51124 2 33 PDHA Property Management 2 36 Replacement Reserve Fund 2 45` Pass-Thru Trust Account Obligations 2 4g Addidonat Disciosu on TAB's 3 1 2003 Tax ANacation Hond Issue -$4,745,008 3 2 2006 Tax Allocation Bond Issue -�15,029,526 3 g UM Hausing Laa� 3 13 Stipula#ed Judgment Case No. 51124 Paymsnt RPTTF ' RPTTF $1 RPTTF $5 RPTTF $3 RPTTF ; RPTTF $8 RPTTF RPTTF $1 RP7TF $39 RPTTF RPTi'F $2 RPTTF �1 RPTTF RPTTF Amount 952 37 122 $25,688 RPTTF RPTTF RPTTF 21 75 1 l.ine Items Considered Administrative Costs January - June 2012 ROPS Project Line Area item Descri tion Pa ment Sau�ce Amaunt 1 15 Trustee S�rvices RPTTF $1 392 � �g bisclosure Services RPTTF $1 152 � 17 legal Seroices RPTTF $8 224 � �g Legal Services RPTTF $649 1 19 Professionai Association RPTTF $2 530 � 2p Auditing Services � RPTTF g1 063 1 21 Reporting Services RPTTF $422 � � Banking Services RPT7F $99 � 23 Liability Insurance � RPTTF $1 160 1 24 Facilities Lease RPTTF $32,000 1 27 Cartying Costs - Agency Property RPTTF $1 944 � 28 Carrying Cosks - Agsncy Property RPT'fF $15,004 1 30 � Project Area Administrabon RPTTF $1247 855 1 31 Vested Employee Benefit Obligation RPTTF $332,195 2 2� Trustee Senrices RPTTF $7 974 2 � Discbsufe Services RPTTF $6 602 2 23 Legat Senrices RPTTF $44 268 2 24 Legat Services RPTTF $3 715 2 23 � Professional Association RPTTF $14 498 2 2g Auditing Services `_ RPTTF $6 089 2 30 I'roject Area Administra�on RPTTF $388 676 2 31 Vested Empfoyse Benefit Obligation RPiTF $103 470 2 43 Reporting Services RPTTF $2 416 2 q4 Ltability Insurance RPTTF $6 645 2 47 Banking Servlces RPTTF $546 3 11 Project Area Administratlon RPTTF $102 283 3 ti2 Vested Empioyee Senefit Obligation RPITF $27 229 3 �g Trustee Services RPTTF $4 216 3 �g Disclosure Services RPTTF $3 491 3 ZO Legal Services RPTTF $23 408 3 21 Legal Services RPTTF $1,965 3 22 Professional Assxiation RPTTF $7,666 3 23 Auditing Services RPTTF $3,094 3 24 Reporting Services RPTfF $2,455 3 27 Liability Insurance RPTTF $3 514 3 28 8anking Services RPTTF $300 4 g Trustee Services RPTTF $100 4 g Disclosure Services RPTTF $83 Project Line Area item Descri tion Pa ment Source Amount 4 10 Legal Services ___' RPTTF $557 4 11 Legal Services RPTTF $47 4 12 Professional Association RPTTF $175 q � 3 Auditing Services � RPTTF $74 4 14 Reporting Seroices RPTTF $29 4 15 Liability Insurance ___ RPITF $84 4 16 Banking Services RP1TF $7 4 �g Project Area Administratlon RPTTF $306,849 4 2a Vested Empioyee Benefit Obligation RPTTF $68,073 Total $2,788 278 Less Admin Allowance $2 077 566 Total Dlsailowed Administrative Costs ET08 712 ATTACHMENT B ADMINISTRATIVE COST CALCULATtON July — December 2412 Project Line Area item Pro'ect Name/Debt Obli ation 1 1 2002 Tax Aifocation Refundin Bond Issue -$22M 1 2 2003 Tax Aliocation Bond Issue -$19,000,000 1 3 2004 Ta�c Allocation 8ond Issue -$24,945,000 1 4 2006 Tax Aliocation Bond tssue -$62,320,OOd 1 5 2007 Ta�c Alfocation Bond Issue -$32,800,000 1 7 2002 Hausing Tax Allocation Bond Issue - g12M 1 8 2007 Hausing Tax Allocation Bond Issue -$87M 1 9 Indian Springs Stipulated Agreernent 1 10 UM Housing Fund Loan 1 25' Pass-thro ttust account obiigations 1 2g Energy Independence Program 1 32 Stipuiated Judgernent Case No. 51124 1 33 Replacement Reserve Fu�d � 1 39 PDHA Property Management 1 40 PDHA Properties � 1 41 PDHA Properties 1 42 PDHA Property Nlaintenance 1 43 Agency Owned Properties � 44 Additional Disclosu�es on TAB's 1 51 NSP Rehabilitabion 1 52 Santa Rosa Apartments 2 � 2002 Tax Aliocation Refunding Bond Issue -$17M 2 2 2003 Tax Ailocation Bond Issue -$15M 2 3 2006 Tax Ailocation Bond Issue -$67M 2 5" North Sphere Hotel land 2 g* North Sphere Property Acquisition 2 7* City Loan formaBon of Project Area No. 2-1986 2 g UM Housing l.oan 3 28 Additiona! Disclosures on TA8's 2 32 Stipulated Judgement Case No. 51124 2 33 PDHA Property Managemenk 2 34 POHA Properties 2 3g PDHA Properties 2 3fi Replacement Reserve Fund 2 45' Pass-Thru Trust Acoount Obligations 2 46 Additional Disclosures on TAB's Payment Source RPTTF RPTTF RPTTF RPTTF RPTTF RPiTF RPTTF RPTTF RPTfF RPTTF RPTTF RPTTF Amount 766 301 123.708 RPTTF $25,0� RPTTF $1,400 1TF/Other $8,058 TTFIOther $15L000 RPTTF $1304.763 RPTTF $769,006 RPTTF $3,907,988 RP1TF $90 OOd RPTTF $68.750 RPTTF $25,688 RPTTF �469,451 RPTTF �4pp RPTTF $882,607 RPTTF �12_366 RPTfF $357 2 RPTTF �250.1 5 Project Line Area item 3 1 3 2 3 3 3 13 3 15 3 16 3 17 3 25i 3 26 4 1 4 2 4 3 4 4 4 4 4 4 21 23 24 25 26 27* 2003 Tax Aliocation Bond Issue -$4,745,0�0 2006 Tax Ailocation Bond Issue -$15,029,528 UM Housing loan Stipulated Judgement Case No. 51124 Replacement Reserve Fund PDHA Property Management POHA Properties RDHA Properties Pass-Thru Trust Account Qbligations Additional Disclosures on TAB's 1998 $11,020,000 Tax Allocation Bond Issue 2001 $15,695,000 Tax Aliocation Bond Issue 2U06 $18,273,089 Tax Allocation Bond Issve UM Housing Fund Loan Stipulated Judgement Case No. 51 i24 PDHA Property Management PDHA Property Management PDHA Property Management Addidonal Disciosures an TA6's Pass-Thn� Tn1st Account Obligations NSP Rehabilitation Less Amount Disailowed Admin Total :r of Payment Source Amoun RPITF $297 i RPTTF $793,� RPTTF $121,i RPTTF �232,2 RPTfF $714 RPl?F $12 3 RPTTF $3 RPTTF $6 RPTfF $532 2 RPTT� $q RPTTF $554 2 RPT7F $959 8 RPTTF $1 307 8 RP1TF $332,1 RPTTF a896 7 � RPTTF $12,3 RPTTF $3 RPTTF $5 Subtotal: asterisk ab� 0 Line Items Considered Administrative Costs July - December 2012 ROPS Project Line Area item Descri tioa Pa ment Soures Amount � 15 Trustee Senrices RPTTF $1,419 1 16 Disclasure Services RPTTF $1 176 � 17 Legal Services RP7TF $7 878 � 18 Legal Senrices RP1TF $660 � 19 Professional Associaaon RPTTF $2,580 1 20 Auditlng Services RPTTF $2 167 � 21 Reporting Services RPTTF $430 � 22 Banking Services Rp�F $�� 23 Liability Insurance RPTTF $1 158 � 24 Facilities Lease RPTTF $31,998 1 27 Carrying Costs - Agency Property RPTTF $1 944 1 2g Cartying Costs - Agency Property RPTTF $11 224 1 30 P�oject Area Admtnistration RPTTF $860 816 1 31 Vested Employee Benefit Obligation RPTTF $352 053 2 21 Truskee Services RPTTF $7 812 2 22 Disdosure Services RPTTF $6,468 2 23 Legal Services RP'TTF $43,386 2 z4 Legal Services RPTTF $3 642 2 25 Prafessional Assaciation RPTTf $14,208 2 2g Auditing Services RPTTF $5 968 2 30 P�oject Area Adminiskration RPTTF $205,828 2 31 Vested Employee Benefit Obiigation RPTTF $109 656 2 43 Reporting Services RPTTF $2,368 2 4q Liability Insurance RPTTF $6 384 2 q7 Banking Services RPTTF $558 3 11 Project Area Administra6on RPTTF $54 185 3 12 Vested Employee 8enefit �bligation Rp'1'rF $28 857 3 18 Trustee 8ervices RPTTF $4134 3 19 Disctosure Servkes RRT'f� $3,420 3 20 Legal Services RPTTF $22 938 3 21 Legal Services RPTTF ' $1 926 3 22 Professional Association RPTrF $7 513 3 23 Auditing 3ervices RPTTF $3156 3 24 Reporting Services RPTTF $1252 3 27 Liability tnsurance RPl?� $3,378 3 28 Banking Seroices RPT1"F $294 4 B Trustee Services RPTTF gg6 4 g Disclosure Services RPTTF $ga gNT p� � � "� �'� a "� z w Ill n o n * DEPARTMENT OF EDMUND G. �R�WN JR. � C30VERNOR O�<<�p�,P F 1 N A N C E 9 7 S L BTRECT � BACAAMQNTO CA ! 9581 4-3'7O6 � WWW,DOF.OA.00V May 26, 2012 Veronica Tapia, Accountant City of Palm Desert � 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Ms. Tapia: Subject: Recognized Obiigation Payment Schedule Approval Letter Pursuant to Health and Safety Code (HSC) section 34177 (I} (2) (C), the City of Palm Desert Successor Agency submitted Recognized Obligaiion Payment Schedules (ROPS) to the Califomia Department of Finance (Finance) on April 11, 2012 for the period January to June 2012 and April 17, 2012 far the period July to December 2012. Finance is assuming app�opriate ove�sight board approval. Finance has completed its review of your ROPS, which may have included abtaining clarification for various items. In Finance's letter dated April 26, 2012, the following pass thru trust account obligations from both ROPS periods were denied as enforceable obligations (EOs); however, after further review of documents, they have been accepted as EOs: • ProjectArea 1, page 1, item 25 • Project Area 2, page 5, item 45 • Project Area 3, page 8, item 25 • Project Area 4, page 12, item 27 Additionally, after recalculating administrative cost allowance, we are no longer questioning the January to June 2012 administrative expenses as they are within the allowable amount. 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 Apri126, 2012 letter). Except for items disallowed in whole or in }�art as enforceable obligations noted in Finance's letter dated April 26, 2012, Finance is approving the remaining items listed in your RC)PS for both periods. This is our determination with respect to any items funded from the Redevelopment Property Tax Trust Fund {RPTTF) for the June 1, 2012 property tax allocations. If your oversight board disagrees with aur detennination with respect to any items not funded with property tax, any future resolution of the disputed issue may be accammodated by amending the ROPS for the appropriate time period. Items not questioned during this revisw 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 obligation, Finance reseroes the right to remove that item from the fu#ure ROPS, even if it was not remaved from tfie preceding ROPS. Ms. Tapia May 26, 2012 Page 2 Please refer to Exhibit 12 at htto:i/www.dof.ca.00v/assemWy bilis 26-27/view ah� for the amount of Redevelopment Property Tax Trust Fund (RPTTF) that was approved by Finance based on the schedule submitted. As you a�e aware the amount of available RPTTF is the same as the property tax increment that was availabie prior to ABx1 26. This amount is not and never was an unlimited funding source. Therefore as a practical matter, the abi[ity to fund the items on fhe ROPS with property tax is iimited to the amount of funding available in the RPTT�. Please direct inquiries to Evelyn Suess, Supervisor or Mindy Patterson, Lead Analyst at (916} 322-2985. Sincerely, �� r MARK HILL Program 8udget Manager cc: Ms. Janet Moore, Diredo� of Housi�g, City of Palm Desert Ms. Pam Elias, Chiei Accounting P�operty Tax Division, County of Riverside Ms. April Nash, Supervising Accountant, County of Riverside Ms. Jennifer Baechel, Business Process Analyst II; County of Riverside