HomeMy WebLinkAboutRes SA-RDA 016 - ROPS Jul 1 - Dec 31 2013SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. SA-RDA ol6 ADOPTING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE
FOURTH SIX-MONTH PERIOD PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34177 FOR THE PERIOD OF JULY 1,
2013 THROUGH DECEMBER 31, 2013
SUBMITTED BY: Veronica Tapia, Accountant II
DATE: February 14, 2013
CONTENTS: Resolution SA-RDA o16
Recognized Obligation Payment Schedule (7/1/13 — 12/31/13)
Recommendation
By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA oi6
approving the Recognized Obligation Payment Schedule for the fourth six-month period
of July 1, 2013 through December 31, 2013 ("ROPS4").
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
fourth Recognized Obligation Payment Schedule ("ROPS4") to be presented to the
Successor Agency for approvaL
Backqround
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.
G:Uda\VeronicaTapia\WordFiles\StatiReports\SuccessorAgency\SAStaffReport for ROPS4 - 2-14-13.docx
Staff Report
Approving the Fourth
February 14, 2013
Page 2 of 2
Recognized Obligation Payment Schedule
On June 27, 2012, the Governor signed the State budget trailer bill AB 1484, which
became effective immediately. AB 1484 requires that successor agencies submit an
oversight board-approved Recognized Obligation Payment Schedule to the DOF and to
the County Auditor- Controller (CAC) no fewer than 90 days before the date of property
tax distribution. The property tax distribution date for the ROPS4 period is June 1, 2013.
A copy of the Oversight Board-approved ROPS must be posted on the Successor
Agency's website.
The DOF inay 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 ROPS4 may result in a meet and confer period of less than 30 days.
The CAC 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 CAC must provide notice of its objections to the DOF, the Successor Agency
and the Oversight Board by April 1, 2013.
Penalties for Failure to Make Timely Submission
If the Successor Agency does not submit an �versight Board-approved ROPS by
March 1, 2013, 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 March 1 st, 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 inay determine whether the CAC
should distribute any of property tax revenues to the taxing entities, or 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 016 , approving the
Recognized Obligation Payment Schedule for the six-month fiscal period from July 1,
2013 through December 31, 2013 and taking certain related actions.
G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Staff Report for ROPS4 - 2-14-13.docx
Staff Report
Approving the Fourth
February 14, 2013
Page 2 of 2
Fiscal Analvsis
Recognized Obligation Payment Schedule
The preparation and submittal of ROPS4 is for the purpose of allowing the Successor
Agency to pay its enforceable obligations for the period from July 1, 2013 to December
31, 2013.
Submitted by:
Veronica Tapia, Account nt II
Approval:
i ,,L�1�
an M. Moore, Director of Housing
M. Wohlmuth, Executive Director
Paul S. Gibson, Director of Finance
G:�rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Staff Report for ROPS4 - 2-14-13.docx
RESOLUTION NO. SA-RDA oi6
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 JULY 1, 2013 THROUGH DECEMBER
31, 2013, PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS
RECITALS:
A. Pursuant to Health and Safety Code Section 34177(I), 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 July 1, 2013 through December 31, 2013 ("ROPS4"), to the
DOF, the Office of the State Controller, and the County Auditor-Controller no later than
March 1, 2012; and (2) post a copy of the Oversight Board-approved ROPS4 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 ROPS4, 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 ROPS4 as the
Executive Director or the Successor Agency's legal counsel deems necessary or
advisable.
G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency�SA Resolution Approving ROPS 4.dowc
RESOLUTION N0. SA-RDA 016
Section 4. Staff is hereby authorized and directed to submit a copy of ROPS4
to the Oversight Board for approval and, at the same time, transmit a copy of ROPS4 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 ROPS4 to the DOF, the Office of the State Controller, and
the County Auditor-Controller. If the Oversight Board has not approved ROPS4 by
March 1, 2013, Staff is hereby authorized and directed to transmit ROPS4 to the DOF,
the Office of the State Controller, and the County Auditor-Controller by March 1, 2013,
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 ROPS4 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 14th day of February 2013.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
JAN C. HARNIK, CHAIR
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
2
G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving ROPS 4.docx
EXHIBIT A
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(July 1, 2013 through December 31, 2013)
G:Uda\Veronica Tapia\Word FileslStaff Reports\Successor Agency�SA Resolution Approving ROPS 4.docx
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