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Home My WebLink About5/2/2012 - STAFF REPORTS - 4B PALM$,4 Al Pi L G V N °ro"rt Successor Agency Staff Report C �p q��FORN DATE: May 2, 2012 UNFINISHED BUSINESS SUBJECT: Amendment and Transmittal of Recognized Obligations Payment Schedule (ROPS) Pursuant to Section 34169(g)(1) of California Health & Safety Code FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY: Under AB X1 26, the former Redevelopment Agency was required to approve a "draft" Preliminary Initial Recognized Obligation Payment Schedule (IROPS); the first IROPS was due by September 30; the updated IROPS was due by January 31, 2012, the last day of operation of the Agency. The IROPS listed the minimum amounts that must be paid by the City as Successor Agency over the first six (6) month period to fulfill its enforceable obligations during that period, with the first schedule covering the period from January 1, 2012 to June 30, 2012. The City became the Successor Agency on February 1, 2012. The schedule also identifies a source of payment for each recognized obligation from one or more of the following: 1. Low and Moderate Income Housing Fund; 2. Bond Proceeds; 3. Agency Reserve Balances; 4. Administrative Cost Allowance; 5. Redevelopment Property Tax Trust Fund (formerly tax increment), but only to the extent no other source is available; or 6. Other revenue sources. After February 1, 2012, the Successor Agency finalized the IROPS and presented it to the Oversight Board, created and appointed under Section 34179 of the Health & Safety Code. It was submitted to the Department of Finance and County Auditor-Controller prior to the deadline of April 15, 2012. The IROPS established the payments to be made during wind-down activities of the Agency until June 30, 2012. This action is the approval of the second ROPS, from the period July 1, 2012 to December 31, 2012. ITEM NO. _ Successor Agency Staff Report Recognized Obligations Payment Schedules May 2, 2012 Page 12 RECOMMENDATION: Adopt Resolution No. , "A RESOLUTION OF CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE APPROVAL AND TRANSMITTAL OF A RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS) PURSUANT TO ASSEMBLY BILL X1 26 The Initial Recognized Obligation Payment Schedule (IROPS) was approved by Oversight Board and submitted to County Auditor, State Controller's Office and State Department of Finance by April 15, 2012. The final ROPS must also be certified by County Auditor-Controller by the designated External Auditor (which is the auditor hired County Auditor-Controller to prepare an "agreed procedures audit" of the former RDA and shall be Brown Armstrong Accountancy Corporation of Bakersfield, California). The ROPS is the document used to determine the amount of what was previously called tax increment the Agency will be allowed to retain on a six month basis as well as the amount of the Successor Agency's allowable administrative budget. §34177(J)(2). A new ROPS must be adopted for each successive six-month fiscal period. The form of the ROPS is prescribed by the State Department of Finance and adapted by the Riverside Auditor-Controller's Office. Given the timing of the April 15, 2012 deadline to submit the ROPS to the State Department of Finance and the County Auditor-Controller, and the late engagement of Brown Armstrong to undertake the audit, which is required for final certification, Staff recommended the Oversight Board approve the ROPS for transmittal to the State and County, subject to the audit and review by Brown Armstrong. The conclusion of the audit and any findings, and any changes to the ROPS based on the audit, would return to the Oversight Board for review and amendment. No action has been taken to date by the County or State on the IROPS and the County audit is just getting underway. The new ROPS is much more consolidated as the Successor Agency has removed several items that were on the EOPS and ROPS as carryover items from the prior fiscal year; these items no longer were tied to outstanding contracts or existing obligations. The new ROPS must be submitted to the State and County by May 11, 2012 for their review as well, and will also be reviewed by the County's auditor for consistency with AB X1 26. The ROPS also references the Administrative Cost Allowance granted under AB X1 26, as well as other administrative cost items that could be paid from Property Taxes (RPTTF) with the consent of the Oversight Board. These items conform to the Successor Agency budget also presented on this agenda. 002 Successor Agency Staff Report Recognized Obligations Payment Schedules May 2, 2012 Page 13 J hn R mond, Director of Geoff a Kie I, Director of Finance/ m nity Vconomic Development City Treasurer David ady, Ex a Director Tom Wilson, P#sistant City Manager Douglas C. Holland, City Attorney Attachments: 1. Resolution 2. Recognized Obligation Payment Schedule (ROPS) (Exhibit "A" to the Resolution) 003 RESOLUTION NO. A RESOLUTION OF CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE APPROVAL AND TRANSMITTAL OF A RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS) PURSUANT TO ASSEMBLY BILL X1 26 WHEREAS, the City Council of the City of Palm Springs ("Council') and the Agency Board of the Palm Springs Community Redevelopment Agency ("Agency") approved and adopted the Amended and Restated Redevelopment Plans for the Merged Project Areas No. 1 and No. 2 ('Redevelopment Plan") covering properties within the Agency (the "Project Areas"); and WHEREAS, since the dates of adoption of the Redevelopment Plan, the Agency undertook redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted and the Governor signed AB X1 26, requiring that each redevelopment agency be dissolved unless the community that created it enacts a resolution committing it to making certain payments; and WHEREAS, on December 29, 2011, the California Supreme Court upheld AB X1 26, which dissolves all of the redevelopment agencies in the State of California, and struck down AB1X 27; and WHEREAS, as part of this wind-down process, all redevelopment agencies are required to file a schedule of "enforceable obligations" that require payments to be made through the end of the calendar year 2011; and WHEREAS, Health and Safety Code Section 34169(h), which is set forth in Part 1.8, requires a redevelopment agency to prepare a preliminary draft of an Initial Recognized Obligation Payment Schedule, which must list the minimum amounts that must be paid by the successor agency over a six (6) month period to fulfill its enforceable obligations during that period, with the first schedule covering the period from January 1, 2012 to June 30, 2012; and Recognized Obligations Payment Schedule 004 May 2,2012 Page 11 WHEREAS, at a meeting of January 4, 2012, the City of Palm Springs took action to designate itself as the Successor Agency and the Housing Successor Agency to the Community Redevelopment Agency, as provided in California Health and Safety Code §§ 34173 and 34176; and WHEREAS, the City as Successor Agency finalized the IROPS and presented it to the Oversight Board for approval on April 3, 2012, and submitted for approval by the California Department of Finance and County Auditor-Controller prior to April 15, 2012; and WHEREAS, the ROPS for July 1, 2012 through December 31, 2012 must be submitted to the same agencies prior to May 11, 2012, with approval of the Oversight Board; and 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 Community Redevelopment Agency of the City of Palm Springs, does 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, attached hereto and incorporated herein by reference as "Exhibit A", is hereby adopted, subject to all reservations of rights and contingencies set forth above, providing that staff may alter the format, but not the content, of the Schedule as necessary. Section 3. The City Manager or designee is authorized to take all actions necessary to implement this Resolution, including without limitation, the posting of this Resolution and the Recognized Obligation Payment Schedule on the Successor Agency's website, and the provision of notice of adoption of this Resolution and such Schedule to the County Auditor-Controller, the State Controller and the State Department of Finance. Recognized Obligations Payment Schedule 005 May 2,2012 Page 12 PASSED, APPROVED, AND ADOPTED at a regular adjourned meeting of the Community Redevelopment Agency of the City of Palm Springs, California, on this 2"d day of May, 2012. STEPHEN P. POUGNET MAYOR ATTEST: JAMES THOMPSON CITY CLERK STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, James Thompson, 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 2nd of May, 2012, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON CITY CLERK Recognized Obligations Payment Schedule 006 May 2,2012 Page 13 RECOGNIZED OBLIGATION PAYMENT SCHEDULE - CONSOLIDATED FILED FOR THE JULY 2012 to DECEMBER 2012 PERIOD Name Of Successor Agency City of Palm Springs as Successor Agency to the Community Redevelopment Agency of the City of Palm Springs Current Total Outstanding Total Due Debt or Obligation During Fiscal Year Outstandino Debt or Obligation $ {{ 138,706,583.15 $ 8,762,412.44 f p dtClpls...ii9tl iEfl ,F„ p {�i ! t{'S i}: �t t it ISi t�II fy E",_,.i: liRt t3{�}ai I :�9(- i Y^ E `iii, i',... Total Due for Six Month Period Outstanding Debt or Obligation $ 3,596,409 02 Available Revenues other than anticipated funding from RPTTF $ 330,000 00 t ,! Enforceable Obligations paid with RPTTF $ 3,141,409 02 7 692 789 44! Administrative Cost paid with RPTTF $ 125,000 00 av+ ,f h, 1't �I: ' t' S._. 12 Pass-through Payments paid with RPTTF $ ,..:t,,.-.,>,E 4, ,{i ..:::..._ t EE 8.:i; ,.,:..I ii.:....,.; Nm..i E v.,,tt.. v .. i.,',:! :,:fl Administrative Allowance(greater of 3%of anticipated Funding from RPTTF or 250,000.Note:Calculation should not include pass-through payments made with RPTTF. The RPTTF Administrative Cost figure above should not enceed this Administrative Cost Allowance figure) $ 250,000 00 Certification of Oversight Board Chairman: Pursuant to Section 34177(I)of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Name Title Enforceable Payment Schedule for the above named agency. 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Funs lg awmes Ram Me successor a9enq:(For fiscal 2011.12 mry,references W RPTTF cotad also mean tax mmemsnl aNacNed to Me Agmry POU W Fetbuary 1,2012.) RPTTF-Redevvcpmont ProgM Tax Treat Fund Bonds-Bond proceeds Omer-reserves,rents,Interest eamings,We LMIHF-Low and Moderate lnaome Housing Fund Mmin Successor Amory MmmletraUse Nlawance 0 0 ( � /. . ...... ....... .. ..........`�� /) _ { \| { � ) \! z ! ) ) ) )\ ) ! ) ; !} \ \ \ \ ) {2 E \) ; ! \ \ OW W ` � \® ®�szeeaseaeeewJ~ 010 Name of Redevelopment Agency: City of Palm Stance as Successor Agency to lM Commurvry Redeveopnenl Agencymffm Cilyof Palm Springs FORMC-Administrative Cast Allowance Paid With Redevelopment Property Tax Trust Fund(RPTTF) ProR.Areas) Memel Pmiecl No.1 aN Merged Pro ect No.2 - DRAFT RECOGNISED OBLIGATION PAYMENT SCHEDULE Per AB 26-Section N11T pl Total Due During Payable from the Administrative Allowance Allocation Total Onteameng Fiscal Year Furring Pa mealsb month Pro.Name l Drum Obli umm Paee Covered., Pro eel Area Debt or Chummier 2012-2013" Scarce" Jmy W12 A 2012 Ruder 2012 Oct 2012 Nov 2012 Dec 2012 Total __1j Administrative Cost Almnarme CRY of Palm sn s Overhead Cost Allocation Merged Ifidamd2 5,500,000.00 250000.00 RPTTF 20,833,35 20,033.33 20,83333 20,83333 20,833.33 20,833.33 $ 125,DEC W 2 $ $ $ 8 $ $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 10 $ 15 $ 16 $ 1] 0 9 $ 20 $ 21 $ 22 $ 23 $ 20 $ 25 $ 26 $ $ 0 $ E a E $ b Totals-ThisP e E 5500000.00 250000.W $ 20833.35 20033.33 $ 20,.33.11 E 20833.33 E 20833.33 20.833J3 E125 W0.00 The Prollmlmry Draft Recoguer d Obligation Payment Schedule(ROMPS)Is to be completed by 311n012 by IN successor agency,and subsegwnlly be approved by the overnight board before the final ROMPS is submitted to the Stale Controller add Stale Dapetlment of Finance by April 15,2012 It Is not a reminere nt that the Agreed Upon Procedures Audit be completed before aubmhpngdo Bnal Overnight Approved ROPS to the Sti eController and Slalo Department of Finance. "All total do.during fines[yen,and payment amounts are projected. Funding sources Liam Red s ...Agercy:(For Rated 2011-12 only,references to RPTTF could also mean tax Increment allocated to the Agency prior to February 1.2012J RPM-Redevelopment Property Tax Trust Fund Bonds-Bond proceeds Other-reserves,men,interest earn[ngA etc LMIHF-Low antl Moderate Income Housing Fund Admin-Successor Agency Administrative Allowance ^-Administrative Cost Allowann cares era 5%of Fmm A$monlh totals In 2011.12 and 3%of Form A 6 month totals in 2012.13.The calculation should net face,In pars.through payments mild for with RPTTF In Form D. 0 '"r Name of Redevelopment Agency Ciy of Palm Springs as Successor AgencYbme Commun'ty Redevelopment Agency of the City of Palm Springs FORM D-Pass-Through Payments Proo,tAma s) Meryed Pra ect N0.1 and Maimed Project NO.2 OTHER OBLIGATION PAYMENT SCHEDULE Per AS 26-Section MITT P) Pass Through and Other Payments••" Tolal Due During Pa ems b monde Total Outstanding Fiscal Yeer Source of P aid Name/Oebl Obli anon Pa a Descri Lion Pm..[Area Debt or Obli anon 2012-201]" Fund"' July 2012 Aw 2012 Se t2012 002012 Nov 2012 Dec 2012 Total 1 AllPosadmani ations Will ba Paidb the Coon Auditor Contholler D,.tIy.mt Ne ScccawrA m $ 2 $ 3 $ $ 5 $ 6 $ $ 8 $ g $ l0 $ tt $ 12 $ 131 If 4 $ 15 $ 8 $ $ 8 $ Tolals-OUrer Obligations $ $ $ $ $ $ $ $ The Preliminary Draft Recognmed Obligation Payment Schedule(ROPS)is to he wmpleted by Xlniil2 by the successor agency,add subsequently be approved by the oversight board before the Mal ROPS is submittal to the Stale Controller add State Department of Finance by Ap ll 15,2012.It Is not a requirement that the Agreed Upon Prwedures Audit he competed before submitting Ote final Overelgld Approved ROPS to the Stato Controller aM Stale Department of Finance. "All total due during fiscal year and plummet amounts are protected. Funding sources from the successor agency: (Forfiscal 2011-12 only.teleran...to RPTTF could also mean tax Increment allocated to the Agency Prior to February 1,2012.) RPTFF-Redevelopment PfoyeHy,Tax Trust Fund Bonds-Bond proceeds Other-meeryes,rants,interest sending,etc LHF-Low and Motlerate Income Housing Fund Admen-Successor Agency Adminlslratme Allowance '•'•MI-Only the January through June 2012 ROPS should include expen lltures for pass-through prym rich.Stanice with dre July through December 2012 ROPS,por HSC sect on U163(a)(1).the county auditor controller will make the required pass-thr to,h payments Prior to minuteman,Money into the successoragency's Raidevelo ntObll anon Retirement Fund for Items listed in an oversight hairmal a ved ROPS. Q �V