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Home My WebLink AboutRes SA-RDA 019 - ROPS Jan2014 - Jun2014SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA-RDA ol� ADOPTING RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR FOURTH SIX-MONTH PERIOD PURSUANT TO HEALTH SAFETY CODE SECTION 34177 FOR THE PERIOD JANUARY 1, 2014 THROUGH JUNE 30, 2014 SUBMITTED BY: DATE: CONTENTS: Recommendation Veronica Tapia, Management Analyst II September 12, 2013 Resolution SA-RDA o 19 Recognized Obligation Payment Schedule (1/1/14 — 6/30/14) THE THE AND OF By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA oi9 approving the Recognized Obligation Payment Schedule for the fifth six-month period of January 1, 2014 through June 30, 2014 ("ROPS 13-14B"). 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 fifth Recognized Obligation Payment Schedule ("ROPS 13-14B") 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 4Ja\Veronice Tapia\Word Files\StafTReports�.Successor Agency\SA Staff licpon for ROPS 13-14B - 9-12-13.docx Staff Report Approving the Fifth Recognized Obligation Payment Schedule September 12, 2013 Page2of3 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 ROPS 13-146 period is January 2, 2014. 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 ROPS 13-14B 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 November 1, 2013. Penalties for Failure to Make Timely Submission If the Successor Agency does not submit an Oversight Board-approved ROPS by October 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 October 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 o� 9 approving the Recognized Obligation Payment Schedule for the six-month fiscal period from January G Uda\Veronica Tapia\Word Files\Staff kepons\Successor Agency\SA Staff Repon for ROPS 13-146 - 9-12-13 docx Staff Report Approving the Fifth Recognized Obligation Payment Schedule September 12, 2013 Page 3 of 3 1, 2014 through June 30, 2014 and taking certain related actions. Fiscal Analvsis The preparation and submittal of ROPS 13-14B is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from January 1, 2014 to June 30, 2014. Submitted by: Veronica Tapia, Manage ent Analyst II Approval: or ul S. ib on, Director of Finance ��`. �� OI*1 ��_ � VE�IFIED BY. Origiral on f1e wi*h BY SA-RDA � �J i �>, � rk's �E�ice G.4dalVeronica TapialWord Files\Staff Reports\Successor Agency�SA StafiRepon for ROPS ]3-146 - 9-12-17 docx �. . ' �� , � � ►� � � � -.��1 � . ��-' .. - � - . . . . RESOLUTION NO. SA-RDA oi9 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, 2014 THROUGH JUNE 30, 2014, 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 January 1, 2014 through June 30, 2014 ("ROPS 13-14B"), to the DOF, the Office of the State Controller, and the County Auditor-Controller no later than October 1, 2013; and (2) post a copy of the Oversight Board-approved ROPS 13- 146 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 ROPS 13-14B, 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 ROPS 13-14B as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. G�.VdalVeronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving ROPS 13-148 9-12-13.tlocx RESOLUTION N0. SA-RDA 019 Section 4. Staff is hereby authorized and directed to submit a copy of ROPS 13-14B to the Oversight Board for approval and, at the same time, transmit a copy of ROPS 13-14B 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 ROPS 13-146 to the DOF, the Office of the State Controller, and the County Auditor-Controller. If the Oversight Board has not approved ROPS 13- 14B by October 1, 2013, Staff is hereby authorized and directed to transmit ROPS 13- 14B to the DOF, the Office of the State Controlfer, and the County Auditor-Controlier by October 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 ROPS 13-14B 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 additional review by tl items, and any such ratified and confirmed. advisable to effectuate this Resolution, including requesting �e DOF and an opportunity to meet and confer on any disputed actions previously taken by such officers and staff are hereby PASSED, APPROVED AND ADOPTED this 12th day of September 2013. AYES: NOES: ABSENT: ABSTAIN: ATTEST: JAN C. HARNIK, CHAIR RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 2 G: VdelVeronica TepielWord Files\StaH RepoAs\Successor AgenqlSA Resolution Approving ROPS 13-148 9-12-13.docx RESOLUTION N0. SA-RDA 019 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (January 1, 2014 through June 30, 2014) G Vda\Veronica Tapia\Wortl Files\StaH Reports\Successor Agency\SA Resolution Approving ROPS 13-148 9-12-13 tlocx