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Home My WebLink About1R OCRSUCCESSOR AGENCY STAFF REPORT DATE: DECEMBER 10, 2020 CONSENT CALENDAR SUBJECT: APPROVAL AND TRANSMITTAL OF RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS 21-22A AND 21-228) FOR THE PERIOD OF JULY 1, 2021 THROUGH JUNE 30, 2022, PURSUANT TO SECTION 34169(G)(1) OF CALIFORNIA HEALTH & SAFETY CODE FROM: DAVID H. READY, CITY MANAGER BY: COMMUNITY AND ECONOMIC DEVELOPMENT SUMMARY Under the Redevelopment Dissolution Act, the Successor Agency is required to approve a Recognized Obligation Payment Schedule (ROPS) and submit it to the County Auditor-Controller, the State Department of Finance (DOF), and the State Controller's Office. After review and approval by the City Council acting as the Successor Agency, the ROPS must be approved by the County-wide Oversight Board (COB). This ROPS covers the period from July 1, 2021 through June 30, 2022, separated into two six-month periods. The ROPS will subsequently be presented to COB and submitted to the Department of Finance and County Auditor-Controller prior to the deadline of February 1, 2021. The Successor Agency is also required to approve an administrative budget in an amount not to exceed the maximum permitted under the Redevelopment Dissolution Act. RECOMMENDATION: Adopt Resolution No. __ , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 21-22 A&B) AND AN ADMINISTRATIVE EXPENSE BUDGET FOR THE PERIOD OF JULY 1, 2021 THROUGH JUNE 30, 2022, PURSUANT TO THE CALIFORNIA HEAL TH & SAFETY CODE." f· IT£M NO. .1.. I<., 2Successor Agency Staff Report December 10, 2020 --Page 2 Recognized Obligation Payment Schedule 21-22 STAFF ANALYSIS: The ROPS is the document used by the DOF to determine the amount of Redevelopment Property Tax Trust Fund (RPTTF) moneys the Successor Agency will be allowed to retain to meet approved obligation of the Successor Agency, as well as the amount of the Successor Agency's allowable administrative budget. ROPS 21-22 is segregated into the two six-month periods -July to December 2021 and January to June 2022. After approval by the Successor Agency, the ROPS will be submitted to the COB for approval, and after their approval, to the Department of Finance. ROPS 21-22 must be approved by the COB and must be submitted to the DOF no later than February 1, 2021. The COB meets on January 7, 2021 and their agenda deadline is December 24, 2020. The COB requires that the City file a Notice of Exemption under CEQA relating to the ROPS, and direction to staff to do so after approval of the COB resolution is included in the resolution approving the ROPS 21-22. FISCAL IMPACT: The total enforceable obligations for Fiscal Year 2021-22 are $5,162,122. The obligations are funded with a combination of RPTTF, funds unspent in the prior ROPS period, and bond reserves funded in the prior ROPS period as required by the bond indentures. The maximum amount of the allowable administrative budget for the Fiscal Year is $250,000, which is allocated to salaries and benefits as shown below: ADMINISTRATIVE BUDGET 40000 Salaries 41450 Telecommunication 41600 PERS Contribution 41700 Medicare Tax 41900 Fringe Benefits 41930 RHS Health Benefit Total 175,896 258 47,418 2,551 23,619 258 $250,000 3.... Successor Agency Staff Report December 10, 2020 --Page 3 Recognized Obligation Payment Schedule 21-22 The maximum allowance for administrative costs does not cover the total of such costs incurred by the City to administer the winding down of the former Redevelopment Agency's operations. Additional expenses not covered by the maximum allowance include additional salaries of personnel allocable to the Successor Agency, legal costs of the Successor Agency, costs to prepare and administer the ROPS and audit of the Successor Agency's financial statements, which total approximately $50,000. Such costs are paid by the General Fund. If any of the $250,000 allowance remains after payment of salaries, any amounts will be applied to such other additional administrative costs. SUBMITTED: Jay v:·twH~LU Commu ity Economic Development M 1 . L. S. "0......:::: Assistant City Manager Attachments: 1. Resolution Director of Finance David H. Ready, Es City Manager 2. Recognized Obligation Payment Schedule for Fiscal Year 21-22 (Exhibit "A" to the Resolution) 4ATTACHMENT 1 Resolution 5RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 21-22 A&B) AND AN ADMINISTRATIVE EXPENSE BUDGET FOR THE PERIOD OF JULY 1, 2021 THROUGH JUNE 30, 2022, PURSUANT TO THE CALIFORNIA HEAL TH & SAFETY CODE. WHEREAS, the Successor Agency to the Palm Springs Community Redevelopment Agency ("Successor Agency") is the successor to the Community Redevelopment Agency of the City of Palm Springs ("Former Redevelopment Agency"), a redevelopment agency in the City of Palm Springs, duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) ("Redevelopment Law"); and WHEREAS, the "Dissolution Act," comprised of Assembly Bill "ABX1 26" (Chapter 5, Statutes of 2011) and "ABX1 27" (Chapter 6, Statutes of 2011), and subsequent legislation including Assembly Bill "AB 1484" (Chapter 26, Statutes of 2012) and Senate Bill "SB 107'' (Chapter 325, Statutes of 2015), made certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 ( commencing with Section 34170) to Division 24 of the California Health and Safety Code ("H&SC"); and WHEREAS, H&SC 34177(1) requires the Successor Agency to prepare a Recognized Obligation Payment Schedule (''ROPS") listing the enforceable obligations of the Former Redevelopment Agency, including administrative expenses; and WHEREAS, pursuant to H&SC Section 34177(0)(1), beginning in 2016, each successor agency has been required to adopt a ROPS before each annual fiscal period establishing its enforceable obligations for that period, identifying sources to satisfy those obligations, and tracking its fund balances. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY OF THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The Recognized Obligation Payment Schedule (ROPS 20-21) for the period of July 1, 2021 through June 30, 2022, attached to and incorporated into this 6Resolution No. Page2 Resolution as Exhibit A, is hereby approved. SECTION 3. The administrative budget of $250,000 for the period of July 1, 2021 through June 30, 2022 is hereby approved. ~ECTION 4. The City Manager or designee is authorized to take all actions necessary to implement this Resolution or any direction from the County Oversight Board, including without limitation, the posting of this Resolution and the Recognized Obligation Payment Schedule on the Successor Agency's website, provide notice of adoption of this Resolution and such Schedule to the County Auditor-Controller, the State Controller and the State Department of Finance or the filing of a notice of exemption from the California Environmental Quality Act. SECTION 5. The Successor Agency's governing board represents and warrants that it examined all of the items on the ROPS 21-22 and finds that each of them is necessary for the continued maintenance and preservation of property owned by the Successor Agency until disposition in accordance with the Dissolution Act, the continued administration of the ongoing enforceable obligations, or the expeditious wind-down of the affairs of the Former Redevelopment Agency by the Successor Agency. SECTION 6. In retaining the responsibilities of the Former Redevelopment Agency as provided in H&SC Sections 34173 and 34176, the City Council expressly determines, reaffirms, and ratifies the statutory limitation on the City and the City Council's liability in retaining the responsibilities of the Former Redevelopment Agency pursuant to the Dissolution Act. Nothing in this Resolution shall be construed as a commitment, obligation, or debt of the City or any resources, funds, or assets of the City to fund the City's service as the Successor Agency to the Palm Springs Community Redevelopment Agency as provided in this Resolution. SECTION 7. This Resolution shall take effect three days from adoption. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, THIS 10th DAY OF DECEMBER, 2020. DAVID H. READY, CITY MANAGER ATTEST: ANTHONY MEJIA, CITY CLERK 7Resolution No. Page3 8Resolution No. Page4 CERTIFICATION STATEOFCALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY MEJIA, City Clerk of the City of Palm Springs, California, hereby certify that Resolution No. _ was adopted by the Palm Springs City Council at a regular meeting held on the 10th day of December, 2020, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ANTHONY MEJIA, CITY CLERK City of Palm Springs, California 9Resolution No. Page5 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 21-22 10Resolution No. Page6 EXHIBIT B ADMINISTRATIVE EXPENSE BUDGET 21-22 The maximum amount of the allowable administrative budget for the Fiscal Year is $250,000, which is allocated to salaries and benefits as shown below: 40000 Salaries 41450 Telecommunication 41600 PERS Contribution 41700 Medicare Tax 41900 Fringe Benefits 41930 RHS Health Benefit Total 175,896 258 47,418 2,551 23,619 258 $250,000 The maximum allowance for administrative costs does not cover the total of such costs incurred by the City to administer the winding down of the former Redevelopment Agency's operations. Additional expenses not covered by the maximum allowance include additional salaries of personnel allocable to the Successor Agency, legal costs of the Successor Agency, costs to prepare and administer the ROPS and audit of the Successor Agency's financial statements, which total approximately $50,000. Such costs are paid by the General Fund. If any of the $250,000 allowance remains after payment of salaries, any amounts will be applied to such other additional administrative costs. 11ATTACHMENT 2 Recognized Obligation Payment Schedule for Fiscal Year 21-22 (Exhibit "A" to the Resolution) 12Recognized Obligation Payment Schedule (ROPS 21-22) -Summary Filed for the July 1, 2021 through June 30, 2022 Period Successor Agency: Palm Springs County: Riverside Current Period Requested Funding for Enforceable Obligations (ROPS Detail) A Enforceable Obligations Funded as Follows (B+C+D) B Bond Proceeds C Reserve Balance D Other Funds E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) F RPTTF G Administrative RPTTF H Current Period Enforceable Obligations (A+E) Certification of Oversight Board Chairman: Pursuant to Section 34177 ( o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for 21-22A Total 21-22B Total (July -(January -December) June) $ 2,286,310 $ -2,262,928 23,382 $ 137,168 $ 2,738,644 137,168 2,488,644 250,000 $ 2,423,478 $ 2,738,644 Name ROPS 21-22 Total $ 2,286,310 2,262,928 23,382 $ 2,875,812 2,625,812 250,000 $ 5,162,122 Title the above named successor agency. Isl ----------------Signature Date 13A B C D E F Item Agreement Agreement # Project Name Obligation Type Execution Termination Payee Date Date 3 2007 Taxable Bonds Issued 09/18/ 09/01/2034 US Bank Tax Allocation On or Before 2007 Bonds, Series 12/31/10 B 6 2004 Bond 06/06/ 11/01/2034 City of Palm Convention Reimbursement 2007 Springs Center Bonds Agreements 7 Contract Fees 09/22/ 06/30/2023 Harrell& Services -2010 Company Financial Advisors 8 Contract Fees 06/04/ 06/30/2023 Willdan Services -2010 Financial Rebate Services Calculation 9 Bond Trustee Fees 06/16/ 11/01/2034 US Bank Fees 2004 11 Disposition and Business 12/05/ 09/01/2022 Endure Development Incentive 2005 Investments Agreement Agreements 16 Agreement for Miscellaneous 12/06/ 06/30/2037 City of Palm Reimbursement 2006 Springs 17 2004 Bond 06/06/ 11/01/2034 City of Palm Convention Reimbursement 2007 Springs Center Bonds Agreements 33 Administrative Admin Costs 07/01/ 06/30/2034 City of Palm Cost Allowance 2016 Springs 40 City Loan and City/County 06/15/ 11/01/2035 City of Palm Interest Loan (Prior 06/ 2011 Springs 28/11 ), Cash exchange 41 Agreement for City/County 12/06/ 11/01/2035 City of Palm Palm Springs Recognized Obligation Payment Schedule (ROPS 21-22) -ROPS Detail July 1, 2021 through June 30, 2022 G H I J K L M N 0 ROPS 21-22A (Jul -Dec) Project Total ROPS Fund Sources Description Area Outstanding Retired 21-22 Obligation Total Bond Reserve Other RPTTF Proceeds Balance Funds $39,354,078 $5,162,122 $-$2,262,928 $23,382 $137,168 Merged Merged 1 2,315,343 N $178,256 -130,356 - - Project 1 Agency Merged 1 -N $-- - - - Contribution to Convention Center Expansion Bonds Merged 90,000 N $5,200 - - - - Disclosure 1/Merged /Rating 2 Bonds Merged 21,500 N $2,750 - - - 2,750 Rebate 1/Merged Consulting 2 Services Bonds Merged 138,000 N $10,400 -- - 6,700 Trustee Fees 1/Merged 2 Financial Merged 1 140,000 N $140,000 - - 23,382 116,618 Assistance (10 Year) PSL-236 Merged 2 -y $-- - - Lease Agency Merged 2 -N $-- - - Contribution to Convention Center Expansion Overhead Merged1/ 3,500,000 N $250,000 --- Cost Merged 2 Allocation/ Salaries Operating Merged1/ -y $-- - - and Merged 2 Administrative Costs For FY 2011-12, General Fund Loan Prepay Merged 2 y $---- p Q R s T u V w ROPS 21-22B (Jan • Jun) 21-22A Fund Sources 21-22B Total Total Admin Bond Reserve Other RPTTF Admin RPTTF Proceeds Balance Funds RPTTF $-$2.423,478 $-$- $-$2,488,644 $250 ,000 $2,738 ,644 -$130,356 - - - 47,900 -$47,900 -$--- - $- -$-- - - 5,200 -$5,200 -$2,750 ---$- -$6,700 --3,700 -$3,700 -$140,000 - - --$- -$---$- -$--- --$- -$-- - -250,000 $250,000 -$--- - $- -$----$- 14A B C D E F G H I J K L M N 0 p Q R s T u V w ROPS 21-22A (Jul -Dec) ROPS 21-22B (Jan -Jun) Item Agreement Agreement Project Total ROPS Fund Sources 21-22A Fund Sources 21-22B Project Name Obligation Type Execution Termination Payee Description Outstanding Retired 21-22 # Date Date Area Obligation Total Bond Reserve Other Admin Total Bond Reserve Other Admin Total Proceeds Balance Funds RPTTF RPTTF Proceeds Balance Funds RPTTF RPTTF Reimbursement Loan (Prior 06/ 2006 Springs Portion of 28/11), Cash Sustainability PSL236, exchange Fund Sustainability (Special Revenue) Fund Loan 44 2007 Taxable Reserves 09/18/ 09/01/2034 US Bank Reserve for Merged 1 127,900 N $127,900 -- - - $-- - - 127,900 -$127,900 Tax Allocation 2007 September 1 Bonds, Series Debt Service B 50 Property Tax -Property 07/01/ 06/30/2037 County of Property Merged 2 -y $---- - $-- - $- PSL 236 Maintenance 2013 Riverside Taxes on Property Property Under PSL 236 Lease - Current Installment 62 2014 Refunding 08/19/ 09/01/2034 US Bank Refinancing Merged1/ 11,741,975 N $1,589,925 1,386,900 - - -$1,386,900 - - - 203,025 $203,025 Subordinate Bonds Issued 2014 of 2001 and Merged 2 Tax Allocation After 6/27/12 2004 Bonds Bonds 66 2014 Reserves 08/19/ 09/01/2034 US Bank Reserve for Merged1/ 1,073,025 N $1,073,025 - - - --$--- - 1,073,025 -$1,073,025 Subordinate 2014 September 1 Merged 2 Tax Allocation Debt Service Bonds 70 LRPMP Property 07/01/ 06/30/2022 City of Palm Maintenance Merged1/ 4,400 N $2,200 --1,100 -$1,100 ---1,100 -$1,100 Properties Maintenance 2016 Springs Costs on Merged 2 Agency Held Property Pending Disposition 71 LRPMP Property 07/01/ 06/30/2022 Various Costs for Merged1/ 20,000 N $20,000 - - 10,000 -$10,000 - - 10,000 $10,000 Properties Dispositions 2016 Vendors Dlspostion of Merged 2 Agency Held Property- Appraisals, Fencing, Closing Costs, Drafting Sale Agreement 73 2017 Tax Refunding 11/15/ 09/01/2034 US Bank Refinancing Merged 1 13,798,875 N $602,475 -386,100 - - - $386,100 --216,375 $216,375 Allocation Bonds Issued 2017 2007 Series Refunding After 6/27/12 A Bonds Bonds, Series A 74 2017 Tax Reserves 11/15/ 09/01/2034 US Bank Reserve for Merged 1 366,975 N $366,975 - - ---$--366,975 -$366,975 15A B C D E F G H I J K L M N 0 p Q R s T u V w ROPS 21-22A (Jul· Dec) ROPS 21-228 (Jan• Jun) Item Agreement Agreement Project Total ROPS Fund Sources 21-22A Fund Sources 21-228 Project Name Obligation Type Execution Termination Payee Description Outstanding Retired 21-22 # Date Date Area Obligation Total Bond Reserve Other Admin Total Bond Reserve Other Admin Total Proceeds Balance Funds RPTTF RPTTF Proceeds Balance Funds RPTTF RPTTF Allocation 2017 September 1 Refunding Debt Service Bonds, Series A 75 2017 Taxable Refunding 11/15/ 09/01/2034 US Bank Refinancing Merged 2 5,654,363 N $431,294 . 359,572 . . . $359,572 -. . 71,722 -$71,722 Tax Allocation Bonds Issued 2017 2007 Serles Refunding After 6/27/12 A Bonds Bonds, Series B 76 2017 Taxable Reserves 11/15/ 09/01/2034 US Bank Reserve for Merged 2 361,722 N $361,722 -- - - $----361,722 -$361,722 Tax Allocation 2017 September 1 Refunding Debt Service Bonds, Series B 16Palm Springs Recognized Obligation Payment Schedule (ROPS 21-22) -Report of Cash Balances July 1, 2018 through June 30, 2019 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (I), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. A B C D E F G H Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF ROPS 18-19 Cash Balances Prior ROPS RPTTF and Comments (07/01/18 -06/30/19) Bonds issued Bonds issued Reserve Rent, grants, Non-Ad min on or before on or after 12/31/10 01/01/11 Balances retained interest, etc. and Admin for future period(s) 1 Beginning Available Cash Balance (Actual 07/01/18) 19 6,081 1,631,723 101,723 383,513 Col F: $14,958 15-16 PPA (Reserves) for RPTTF amount should exclude "A" period distribution 18-19 + $1,616,765 bond reserves Col G: amount. $60,946 16-17 PPA for 19-20 + $322,567 17-18 PPA for 20-21 2 Revenue/Income (Actual 06/30/19) 4,780 9,492 23,382 6,471,295 RPTTF amount should tie to the ROPS 18-19 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 18-19 Enforceable Obligations 6,480 1,631,723 6,415,709 Col F includes $14,958 15-16 PPA (Actual 06/30/19) (Reserves) applied to 18-19 Item 11 4 Retention of Available Cash Balance (Actual 06/30/19) 4,799 9,093 101,716 383,513 Col G: $60,946 16-17 PPA for 19-20 + RPTTF amount retained should only include the amounts $322,567 17-18 PPA for 20-21 distributed as reserve for future period(s) 5 ROPS 18-19 RPTTF Prior Period Adjustment 55,586 18-19 PPA RPTTF amount should tie to the Agency's ROPS 18-19 PPA No entry required form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/19) $-$-$-$23,389 $-Col F: Apply to Item 11 C to F = (1 + 2 • 3 • 4), G = (1 + 2 • 3 • 4 • 5) 17Palm Springs Recognized Obligation Payment Schedule (ROPS 21-22) -Notes July 1, 2021 through June 30, 2022 Item# Notes/Comments 3 ... 6 7 8 9 11 16 ... 17 ............. u •• 33 40 uuoou•• 41 .......... 44 50 .......... 62 66 70 ... 71 Legal Fees for Negotiation of Property Sale Agreement and DDA 73 .......... 74 ........................ 75 76