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HomeMy WebLinkAboutSA-RDA 045 Recognized Obligation Payment Schedule (ROPS) JUL-DEC 2015SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA-RDAo45 ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE SIX-MONTH FISCAL PERIOD FROM JULY 1, 2015 THROUGH DECEMBER 31, 2015, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND TAKING CERTAIN RELATED ACTIONS SUBMITTED BY: Veronica Tapia, Management Analyst II DATE: February 12, 2015 CONTENTS: Resolution SA-RDA o45 Recognized Obligation Payment Schedule (7/1/15-12/31/15) Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o45 approving the Recognized Obligation Payment Schedule for the six-month period of July 1, 2015 through December 31, 2015 ("ROPS 15-16A"). 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 eighth Recognized Obligation Payment Schedule ("ROPS 15-16A") 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\Vemnica Tapia\Word Files\Staff Reports\Successor Agency\SR ROPS 15-16A 2-12-I S.docx Staff Report Approving the Eighth Recognized Obligation Payment Schedule - sA-xnao45 February 12, 2015 Page 2 of 3 Health and Safety Code Section 34177 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 15-16A period is June 1, 2015. 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 15-16A 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 March 3, 2015. Penalfies for Failure to Make Timely Submission If the Successor Agency does not submit an Oversight Board-approved ROPS by March 3, 2015, 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 3rd, 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. , approving the Recognized Obligation Payment Schedule for the six-month fiscal period from July 1, 2015 through December 31, 2015 and taking certain related actions. G:Uda\VeronicaTapia\WordFiles\StaffReports\SuccessorAgency\SRROPS 15-16A 2-12-15.docx Staff Report Approving the Eighth February 12, 2015 Page 3 of 3 Fiscal Analvsis Recognized Obligation Payment Schedule - sa-xna o4s The preparation and submittal of ROPS 15-16A is for the purpose of allowing the Successor Agency to pay its enforceable obligations for the period from July 1, 2015 to December 31, 2015. Submitted by: , . eronica Tapia, Manage ent Analyst II Approval: Ja�et M/1Vloore, Director of Housing n M. Wohlmuth, Executive Director P I S. Gibson, Director of Finance �' r � `l "� � �Y SA-�A �� ON - �% r � VE��IEI� B�..���-- Origiazal �n �l� �a�€�-a ;s�a-� (�i��- s °J��e �1U'�.-,S : �-k�rn �k,, �����lc��, c�:��e��' l�l(�L�`� '_ l�C�,���_ � � ��;�n���, €� �-�;� G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SR ROPS 15-16A 2-12-IS.docx RESOLUTION NO. SA-RDA n45 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, 2015 THROUGH DECEMBER 31, 2015, 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 approvat. 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, 2015 through December 31, 2015 ("ROPS 15-16A"), to the DOF, the Office of the State Controller, and the County Auditor-Controller no later than March 3, 2015; and (2) post a copy of the Oversight Board-approved ROPS 15- 16A 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 15-16A, 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 15-16A 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 15-16A 2-12-15.docx RESOLUTION N0. SA-RDA 045 Section 4. Staff is hereby authorized and directed to submit a copy of ROPS 15-16A to the Oversight Board for approval and, at the same time, transmit a copy of ROPS 15-16A 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 15-16A to the DOF, the Office of the State Controller, and the County Auditor-Controller. If the Oversight Board has not approved ROPS 15- 16A by March 3, 2015, Staff is hereby authorized and directed to transmit ROPS 15- 16A to the DOF, the Office of the State Controller, and the County Auditor-Controller by March 3, 2015, 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 15-16A 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 12th day of February, 2015. AYES: NOES: ABSENT: ABSTAI N: ATTEST: Susan Marie Weber, 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 Resoluiion Approving ROPS 15-16A 2-12-15.docx RESOLUTION N0. 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