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Home My WebLink About1NSUCCESSOR AGENCY STAFF REPORT DATE: JANUARY 13, 2022 CONSENT CALENDAR SUBJECT: APPROVAL AND TRANSMITTAL OF RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS 22-23A AND 22-23B) FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023, PURSUANT TO SECTION 34169(G)(1) OF CALIFORNIA HEALTH & SAFETY CODE FROM: Justin Clifton, City Manager BY: Community & Economic Development Department 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, 2022 through June 30, 2023, 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, 2022. 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 22-23 A&B) AND AN ADMINISTRATIVE EXPENSE BUDGET FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023, PURSUANT TO THE CALIFORNIA HEALTH & SAFETY CODE.” 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 Item 1N - 1 to meet approved obligations of the Successor Agency, as well as the amount of the Successor Agency's allowable administrative budget. ROPS 22-23 is segregated into two six-month periods – July to December 2022, and January to June 2023. 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 22-23 must be approved by the COB and submitted to the DOF no later than February 1, 2022. The COB meets on January 20, 2022. 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 22-23. ENVIRONMENTAL ASSESSMENT: The requested Successor Agency action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that the activities in question will have a significant impact on the environment and the amendment is merely the adoption of annual budget; it will not require any construction activities and will not lead to any direct or reasonably foreseeable indirect physical environmental impacts. FISCAL IMPACT: The total enforceable obligations for Fiscal Year 2022-23 are $4,607,228. 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: 40000 Salaries 175,896 41450 Telecommunication 258 41600 PERS Contribution 47,418 41700 Medicare Tax 2,551 41900 Fringe Benefits 23,619 41930 RHS Health Benefit 258 Total $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 Item 1N - 2 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, those funds will be applied to such other additional administrative costs. REVIEWED BY: Department Director: Jay Virata City Manager: Justin Clifton ATTACHMENTS: A. Resolution. B. Recognized Obligation Payment Schedule for Fiscal Year 22-23 (Exhibit “A” to the Resolution). Item 1N - 3 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 22-23 A&B) AND AN ADMINISTRATIVE EXPENSE BUDGET FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023, PURSUANT TO THE CALIFORNIA HEALTH & 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(l) 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(o)(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 22-23) for the period of July 1, 2022 through June 30, 2023, attached to and incorporated into this Resolution as Exhibit A, is hereby approved. Item 1N - 4 SECTION 3. The administrative budget of $250,000 for the period of July 1, 2022 through June 30, 2023 is hereby approved. SECTION 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 22-23 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 13th DAY OF JANUARY, 2022. ________________________________ JUSTIN CLIFTON, CITY MANAGER ATTEST: ________________________________ ANTHONY MEJIA, CITY CLERK Item 1N - 5 CERTIFICATION STATE OF CALIFORNIA ) 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 13th day of January, 2022, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________________ ANTHONY MEJIA, CITY CLERK City of Palm Springs, California Item 1N - 6 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 22-23 . Item 1N - 7 EXHIBIT B ADMINISTRATIVE EXPENSE BUDGET 22-23 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 175,896 41450 Telecommunication 258 41600 PERS Contribution 47,418 41700 Medicare Tax 2,551 41900 Fringe Benefits 23,619 41930 RHS Health Benefit 258 Total $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. Item 1N - 8 --- Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: Palm Springs County: Riverside Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 22-23A Total (July - December) 22-23B Total (January - June) ROPS 22-23 Total A Enforceable Obligations Funded as Follows (B+C+D) $ 1,934,542 $ - $ 1,934,542 B Bond Proceeds - - - C Reserve Balance 1,929,622 - 1,929,622 D Other Funds 4,920 - 4,920 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 1,780 $ 2,670,906 $ 2,672,686 F RPTTF 1,780 2,420,906 2,422,686 G Administrative RPTTF - 250,000 250,000 H Current Period Enforceable Obligations (A+E) $ 1,936,322 $ 2,670,906 $ 4,607,228 Certification of Oversight Board Chairman: Name Title 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 the above named successor agency. /s/ Signature Date Item 1N - 9 Palm Springs Recognized Obligation Payment Schedule (ROPS 22-23) - ROPS Detail July 1, 2022 through June 30, 2023 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 22-23 Total ROPS 22-23A (Jul - Dec) 22-23A Total ROPS 22-23B (Jan - Jun) 22-23B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $36,118,528 $4,607,228 $- $1,929,622 $4,920 $1,780 $- $1,936,322 $- $- $- $2,420,906 $250,000 $2,670,906 3 2007 Taxable Tax Allocation Bonds, Series B Bonds Issued On or Before 12/31/10 09/18/ 2007 09/01/2034 US Bank Merged Project 1 Merged 1 2,134,543 N $173,343 - 127,900 - - - $127,900 - - - 45,443 - $45,443 6 2004 Convention Center Bonds Bond Reimbursement Agreements 06/06/ 2007 11/01/2034 City of Palm Springs Agency Contribution to Convention Center Expansion Merged 1 - Y $- - - - - - $- - - - - - $- 7 Contract Services - Financial Fees 09/22/ 2010 06/30/2023 Harrell & Company Advisors Bonds Disclosure /Rating Merged 1/Merged 2 65,000 N $5,400 - - - - - $- - - - 5,400 - $5,400 8 Contract Services - Rebate Calculation Fees 06/04/ 2010 06/30/2023 Willdan Financial Services Bonds Rebate Consulting Services Merged 1/Merged 2 21,500 N $- - - - - - $- - - - - - $- 9 Bond Trustee Fees Fees 06/16/ 2004 11/01/2034 US Bank Bonds Trustee Fees Merged 1/Merged 2 138,000 N $10,400 - - 4,920 1,780 - $6,700 - - - 3,700 - $3,700 11 Disposition and Development Agreement Business Incentive Agreements 12/05/ 2005 09/01/2022 Endure Investments Financial Assistance (10 Year) Merged 1 - Y $- - - - - - $- - - - - - $- 17 2004 Convention Center Bonds Bond Reimbursement Agreements 06/06/ 2007 11/01/2034 City of Palm Springs Agency Contribution to Convention Center Expansion Merged 2 - Y $- - - - - - $- - - - - - $- 33 Administrative Cost Allowance Admin Costs 07/01/ 2016 06/30/2034 City of Palm Springs Overhead Cost Allocation/ Salaries Merged1/ Merged 2 3,250,000 N $250,000 - - - - - $- - - - - 250,000 $250,000 44 2007 Taxable Tax Allocation Bonds, Series B Reserves 09/18/ 2007 09/01/2034 US Bank Reserve for September 1 Debt Service Merged 1 130,444 N $130,444 - - - - - $- - - - 130,444 - $130,444 62 2014 Refunding 08/19/09/01/2034 US Bank Refinancing Merged1/ 10,133,800 N $1,254,300 - 1,073,025 - - - $1,073,025 - - - 181,275 - $181,275 Item 1N - 10 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 22-23 Total ROPS 22-23A (Jul - Dec) 22-23A Total ROPS 22-23B (Jan - Jun) 22-23B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Subordinate Tax Allocation Bonds Bonds Issued After 6/27/12 2014 of 2001 and 2004 Bonds Merged 2 66 2014 Subordinate Tax Allocation Bonds Reserves 08/19/ 2014 09/01/2034 US Bank Reserve for September 1 Debt Service Merged1/ Merged 2 1,091,275 N $1,091,275 - - - - - $- - - - 1,091,275 - $1,091,275 70 LRPMP Properties Property Maintenance 07/01/ 2016 06/30/2022 City of Palm Springs Maintenance Costs on Agency Held Property Pending Disposition Merged1/ Merged 2 2,000 N $- - - - - - $- - - - - - $- 71 LRPMP Properties Property Dispositions 07/01/ 2016 06/30/2022 Various Vendors Costs for Dispostion of Agency Held Property - Appraisals, Fencing, Closing Costs, Drafting Sale Agreement Merged1/ Merged 2 4,400 N $- - - - - - $- - - - - - $- 73 2017 Tax Allocation Refunding Bonds, Series A Refunding Bonds Issued After 6/27/12 11/15/ 2017 09/01/2034 US Bank Refinancing 2007 Series A Bonds Merged 1 13,249,550 N $580,200 - 366,975 - - - $366,975 - - - 213,225 - $213,225 74 2017 Tax Allocation Refunding Bonds, Series A Reserves 11/15/ 2017 09/01/2034 US Bank Reserve for September 1 Debt Service Merged 1 313,225 N $313,225 - - - - - $- - - - 313,225 - $313,225 75 2017 Taxable Tax Allocation Refunding Bonds, Series B Refunding Bonds Issued After 6/27/12 11/15/ 2017 09/01/2034 US Bank Refinancing 2007 Series A Bonds Merged 2 5,216,331 N $430,181 - 361,722 - - - $361,722 - - - 68,459 - $68,459 76 2017 Taxable Tax Allocation Refunding Bonds, Series B Reserves 11/15/ 2017 09/01/2034 US Bank Reserve for September 1 Debt Service Merged 2 368,460 N $368,460 - - - - - $- - - - 368,460 - $368,460 Item 1N - 11 Palm Springs Recognized Obligation Payment Schedule (ROPS 22-23) - Report of Cash Balances July 1, 2019 through June 30, 2020 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), 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 ROPS 19-20 Cash Balances (07/01/19 - 06/30/20) Fund Sources Comments Bond Proceeds Reserve Balance Other Funds RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent, grants, interest, etc. Non-Admin and Admin 1 Beginning Available Cash Balance (Actual 07/01/19) RPTTF amount should exclude "A" period distribution amount. 4,780 10,692 2,347,544 125,098 439,099 2 Revenue/Income (Actual 06/30/20) RPTTF amount should tie to the ROPS 19-20 total distribution from the County Auditor-Controller 497 10,335 4,920 3,796,416 3 Expenditures for ROPS 19-20 Enforceable Obligations (Actual 06/30/20) 4,468 2,747 2,347,544 45,917 3,840,480 4 Retention of Available Cash Balance (Actual 06/30/20) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 809 18,280 79,181 378,153 5 ROPS 19-20 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 19-20 PPA form submitted to the CAC No entry required 16,882 6 Ending Actual Available Cash Balance (06/30/20) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $- $- $- $4,920 $- Col F applied to 22-23 Item 9 Item 1N - 12 Palm Springs Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023 Item # Notes/Comments 3 6 7 8 9 11 17 33 44 62 66 70 71 73 74 75 76 Item 1N - 13 ································-·············································································································································································································································································································································· ====l=========================================== ====f=========================================== ································-·············································································································································································································································································································································· ································-·············································································································································································································································································································································· ................................ 9 , ............................................................................................................................................................................................................................................................................................................................................ . ·······························-r·············································································································································································································································································································································