2015 02 18 OBOVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO THE LA QUINTA REDEVELOPMENT AGENCY
AGENDA
La Quinta City Council Chambers
78-495 Calle Tampico, La Quinta, CA
Regular Meeting on Wednesday, February 18, 2015 at 2:00 p.m.
CALL TO ORDER
Roll Call:
Board Members: Henderson, Howell, Marshall, Maysels, McDaniel, Nelson, Vice Chair
Osborne
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT
This is the time set aside for public comment on any matter not listed on the agenda.
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When addressing the Oversight Board, please state your name and address.
CONFIRMATION OF AGENDA
PRESENTATIONS - NONE
APPROVAL OF MINUTES
1.MINUTES OF SEPTEMBER 17, 2014
WRITTEN COMMUNICATIONS - NONE
CONSENT ITEMS - NONE
BUSINESS ITEMS
1.SELECT AN OVERSIGHT BOARD CHAIRPERSON TO FILL THE VACANCY OF
JOHN PEÑA
2.ADOPT RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1
THROUGH DECEMBER 31, 2015
3.ADOPT RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY
1 THROUGH DECEMBER 31, 2015
STUDY SESSION - NONE
REPORTS AND INFORMATIONAL ITEMS - NONE
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EXECUTIVE DIRECTOR ITEMS
1. VERBAL UPDATE ON SUCCESSOR AGENCY MATTERS
ADJOURNMENT
The next regular meeting of the Oversight Board will be held on March 4, commencing
at 2:00 p.m. at the La Quinta City Hall Council Chambers, 78-495 Calle Tampico, La
Quinta, CA 92253.
DECLARATION OF POSTING
I, Pam Nieto, Oversight Board Secretary, of the City of La Quinta, do hereby declare
that the foregoing Agenda for the Oversight Board for Successor Agency to La Quinta
Redevelopment Agency meeting of February 18, 2015 was posted on the outside
entry to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at the
Stater Brothers Supermarket at 78-630 Highway 111, and the La Quinta Cove Post
Office at 51-321 Avenida Bermudas, on February 13, 2015.
Dated: February 13, 2015
____________________________________
PAM NIETO
Oversight Board Secretary
Public Notices
The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is
needed for the hearing impaired, please call thd Bhsx BkdqjŬr neehbd `s '65/( 666,60/2+ svdmsx,
four (24) hours in advance of the meeting and accommodations will be made.
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If special electronic equipment is needed to make presentations to the Oversight Board,
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7103. A one (1) week notice is required.
If background material is to be presented to the Oversight Board during a meeting, please be
advised the ten (10) copies of all documents, exhibits, etc., must be supplied to the Oversight
Board Secretary for distribution. It is requested that this take place prior to the beginning of
the meeting.
Any writings or documents provided to a majority of the Oversight Board regarding any item
on this agenda will be made available for public hmrodbshnm `s sgd Bhsx BkdqjŬr bntmsdq `s Bhsx
Hall located at 78-495 Calle Tampico, La Quinta, CA 92253, during normal business hours.
3
OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
WEDNESDAY, SEPTEMBER 17, 2014
A meeting of the Oversight Board of the Successor Agency to the La Quinta
Redevelopment Agency was called to order at 2:02 p.m. by Chairperson Peña.
PRESENT: Board Members Howell, Maysels, Novak, Osborne, Chair Peña.
ABSENT: Board Members Marshall and Nelson
STAFF PRESENT: William Ihrke, City Attorney, Frank J. Spevacek, Executive
Director of the Successor Agency
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA ũ Bnmehqldc
PRESENTATIONS - None
APPROVAL OF MINUTES
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Oversight Board Minutes of August 6, 2014, as submitted. Motion passed.
BUSINESS SESSION
1.ADOPT RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF
JANUARY 1, 2015 THROUGH JUNE 30, 2015
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RESOLUTION NO. OB 2014 – 007
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING RECOGNIZED
OBLIGATION PAYMENT SCHEDULE 14-15B FOR THE
PERIOD OF JANUARY 1, 2015 THROUGH JUNE 30,
2015
MOTION — A motion was made by Board Members Howell/Osborne to adopt
Resolution No. OB 2014-007. Motion passed 5 ayes, 0 noes, 2 absent.
2. ADOPT RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF
JANUARY 1, 2015 THROUGH JUNE 30, 2015 (Resolution No. OB 2014-008)
RESOLUTION NO. OB. 2014-008
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR
THE PERIOD OF JANUARY 1, 2015 THROUGH JUNE 30,
2015
MOTION — A motion was made by Board Members Osborne/Howell to
adopt Resolution No. OB 2014-008. Motion passed 5 ayes, 0 noes, 2
absent
REPORTS AND INFORMATION ITEMS — None
ADJOURNMENT
There being no further business, it was moved by Board Members Maysels/Howell
to adjourn this meeting at 2:27 p.m. Motion passed unanimously.
Respectfully submitted,
Pam Nieto
Oversight Board Secretary
OVERSIGHT BOARD MEETING 2 September 17, 2014
OVERSIGHT BOARD MEETING DATE: February 18, 2015
ITEM TITLE: ADOPT RESOLUTION OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE PERIOD OF JULY 1 THROUGH
DECEMBER 31, 2015
AGENDA CATEGORY:
BUSINESS SESSION: 2
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a Resolution approving a Recognized Obligation Payment Schedule for the
period of July 1 through December 31, 2015.
EXECUTIVE SUMMARY:
A Recognized Obligation Payment Schedule (ROPS) identifies the obligations
of the former Redevelopment Agency (RDA) that must be paid.
The Successor Agency (SA) to the former RDA must submit a ROPS to the
Department of Finance (DOF),
Administrative Officer, and the County Auditor-Controller every six months.
The attached ROPS (Attachment 1) identifies $15,221,032 of Enforceable
Obligations that must be funded during the first half of Fiscal Year
2015/2016.
Once the ROPS is approved by the SA, the Oversight Board (OB) is required
to review and approve it.
FISCAL IMPACT:
The SA requests authorization to expend $2,672,038 from bond proceeds, and an
allocation of $12,548,994 of property tax revenue from the Redevelopment
Property Tax Trust Fund (RPTTF). The $12,548,994 of RPTTF funding includes
$365,505 of administrative expenses (for the six-month period). The remaining
$12,183,489 of the RPTTF allocation is to pay bond interest and principal
payments.
BACKGROUND/ANALYSIS:
The ROPS identifies the obligations of the former RDA that the SA must fund
during the first six months of Fiscal Year 2015/2016. These obligations include
tax allocation bond debt service payments, third party contracts and administrative
costs.
The ROPS must be submitted to the above-mentioned entities by March 1, 2015.
The DOF then has 45 days to make its final determination regarding the
enforceable obligations, the dollar amounts, and funding sources. The SA would
then have five business days to request additional DOF review and an opportunity
to meet and confer on disputed items.
If the ROPS is submitted late, the City will be subject to a civil fine of $10,000 per
day.
ALTERNATIVES:
As this is a requirement of the DOF, staff does not recommend an alternative.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. ROPS 15-16A for July 1 through December 31, 2015
RESOLUTION NO. OB 2015 -
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING RECOGNIZED
OBLIGATION PAYMENT SCHEDULE 15-16A FOR THE
PERIOD OF JULY 1, 2015 THROUGH DECEMBER 31,
2015
WHEREAS, the Oversight Board of the Successor Agency to the La Quinta
Successor Agency to take
certain actions to wind down the affairs of the former La Quinta Redevelopment
Agency in accordance with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No. 1 Redevelopment Plan and the Project Area No. 2
provisions of the California Community Redevelopment Law (Health and Safety
Code § 33000, et seq.); and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26
requiring that each redevelopment agency be dissolved and Assembly Bill 27
existence if certain remittance payments were made; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1
27 was filed in the California Supreme Court; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down ABx1 27 as unconstitutional; and
WHEREAS, on January 2, 2012, the City Council of the City of La Quinta
adopted City Council Resolution No. 2012-002, affirmatively electing to be the
successor agency; and
WHEREAS, on June 27, 2012, the California Legislature enacted, and the
made certain revisions to certain of the statutes added by ABx1 26; and
WHEREAS, Health and Safety Code Section 34177 requires successor
agencies to prepare and adopt, on a semi-annual basis,
Resolution No. OB 2015-
Adoption of Recognized Obligation Payment Schedule
Adopted: February 18, 2015
Page 2 of 3
that lists all obligations of the former redevelopment
agency that are enforceable within the meaning of subdivision (d) of Section
34171; and
WHEREAS, the Successor Agency has prepared and approved ROPS 15-16A
for the period of July 1, 2015 through December 31, 2015; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of the
Successor Agency to the La Quinta Redevelopment Agency, as follows:
SECTION 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
SECTION 2. Approval of ROPS 15-16A. In order to enable the Successor Agency
to strictly comply with ABx1 26, and based on the Recitals set forth above, the
Oversight Board hereby approves ROPS 15-16A attached hereto as Exhibit A as the
Recognized Obligation Payment Schedule for the period of July 1, 2015 through
December 31, 2015. Pursuant to Health & Safety Section 34173(e), the
liability, including, but not limited to, its liability for the
obligations on the attached schedule, is limited to the total sum of property tax
revenues it receives pursuant to Part 1.85 of AB x1 26.
SECTION 3. Implementation. The Oversight Board hereby authorizes and directs
the Executive Director to take any action and execute any documents necessary to
implement this Resolution, and further authorizes the Executive Director to forward
ROPS 15-16A to the Department of Finance, State Controller, County
Administrative Officer, and County Auditor-Controller.
SECTION 4. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
SECTION 5. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
Resolution No. OB 2015-
Adoption of Recognized Obligation Payment Schedule
Adopted: February 18, 2015
Page 3 of 3
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the Successor Agency to the La Quinta Redevelopment Agency held this 18th
day of February 2015, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________________
JOHN PENA, Chairperson
Oversight Board of the Successor Agency
to the La Quinta Redevelopment Agency
ATTEST:
______________________________
Pam Nieto
Oversight Board Secretary
OVERSIGHT BOARD MEETING DATE: February 18, 2015
ITEM TITLE: ADOPT RESOLUTION OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO THE LA QUINTA REDEVELOPMENT AGENCY
APPROVING THE SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR THE PERIOD OF
JULY 1 THROUGH DECEMBER 31, 2015
AGENDA CATEGORY:
BUSINESS SESSION: 3
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a resolution approving the Successor Agency Administrative Budget for the
period of July 1 through December 31, 2015.
EXECUTIVE SUMMARY:
The La Quinta Successor Agency (SA) administers the former
Redevelopment Agency-down activities and the Oversight Board (OB).
ABx1 26 (Dissolution Act) provides for an administrative allowance to carry
out these wind-down activities.
The Dissolution Act requires the SA to prepare an administrative budget
every six months, which is reviewed and approved by the OB.
FISCAL IMPACT:
For the period of July 1 through December 31, 2015, the Redevelopment Property
Tax Trust Fund (RPTTF) allocation for non-administrative costs totals
$12,183,489. Three percent of this total, $365,505, is requested from RPTTF
funds for administrative costs associated with the activities of the Successor
Agency.
BACKGROUND/ANALYSIS:
The Dissolution Act provides an administrative allowance for all successor agencies
to carry out wind-down activities of their former redevelopment agencies and to
administer the oversight boards. The amount is equal to three percent of the
RPTTF allocation listed on the Recognized Obligation Payment Schedule, subject to
change based on review and approval by the DOF.
The estimates below include staff time required to carry out SA and OB activities:
SA Administrative Budget
Personnel Costs 233,088
Professional Contract
Services 102,400
Supplies & Publications 4,017
Printing/Mailing/Advertising 1,000
Information Technology
Costs 8,000
Office & Equipment Costs 17,000
Total Administrative Costs $365,505
The two major cost components are personnel costs and professional contract
services. Personnel costs are related to City staff time required to manage SA
affairs. The contract services costs are legal counsel, audit, and consulting
services (as may be required).The detailed administrative budget for this time
period is included as Attachment 1.
Once the SA reviews and approves the administrative budget, the budget must be
reviewed and approved by the OB.
While the Dissolution Act does not require the administrative budgets to be
submitted to the DOF, the DOF does review the actions of oversight boards the
day after the oversight board meetings take place. Therefore, the DOF may
question an oversight bapproval of a successor a
budget.
ALTERNATIVES:
As this is a requirement of the DOF, staff does not recommend an alternative.
Report prepared by: Rita Conrad, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
Attachment: 1. Administrative Budget for July 1 through December 31, 2015
RESOLUTION NO. OB 2015 -
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR
THE PERIOD OF JULY 1, 2015 THROUGH DECEMBER
31, 2015
WHEREAS, the Oversight Board of the Successor Agency to La Quinta
or Successor Agency, as applicable) has
been established to direct the Successor Agency to take certain actions to wind down
the affairs of the former La Quinta Redevelopment Agency (Agency) in accordance
with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No. 1 Redevelopment Plan and the Project Area No. 2
Redevelopment Plan
provisions of the California Community Redevelopment Law (Health and Safety
Code § 33000, et seq
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26 requiring that each
redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and
WHEREAS, Health and Safety Code Section 34177(j) requires each
Successor Agency to prepare a proposed administrative budget every six months
setting forth the Successor Agencys estimated administrative costs of carrying out
the wind-down activities of the former redevelopment agency, proposing sources of
payment for such estimated administrative costs, and proposing for arrangements
for administrative and operations services provided by a city, county and/or other
entity; and
WHEREAS, the Successor Agency has prepared a proposed administrative
budget for the six-month period July 1, 2015 through December 31 2015 (the
Administrative Budget); and
Resolution No. OB 2015-
Adoption of SA Administrative Budget
Adopted: February 18, 2015
Page 2
WHEREAS, on February 17, 2015 the Successor Agency reviewed and
approved the Administrative Budget; and;
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of Successor
Agency to La Quinta Redevelopment Agency, does hereby resolve as follows:
SECTION 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
SECTION 2. Approval of Administrative Budget. The Oversight Board hereby
approves the Administrative Budget, which is on file with the Secretary of the
Successor Agency.
SECTION 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
SECTION 4. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the Successor Agency to La Quinta Redevelopment Agency held this 18th day
of February, 2015, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________________
John Pena, Chairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
Resolution No. OB 2015-
Adoption of SA Administrative Budget
Adopted: February 18, 2015
Page 3
ATTEST:
_________________________________
PAM NIETO
Oversight Board Secretary
ATTACHMENT 1
SUCCESSOR AGENCY/OVERSIGHT BOARD
JULY - DECEMBER 2015
ADMINISTRATIVE BUDGET
PERSONNEL$233,088
Includes base salary plus benefits.
Successor Agency Administration$168,088
Oversight Board Administration$65,000
SUPPLIES & SERVICES
CONTRACT SERVICES$102,400
This account provides for legal, consulting, and audit services
plus a portion of League of California Cities and California
Redevelopment Agency dues related to technical
assistance and training.
Audits as required by ABx1 26$10,000
League of California Cities Dues & Seminars/Webinars related to ABx1 26$1,950
Legal Services for Successor Agency$45,250
Consulting Services for Successor Agency$45,200
SUPPLIES AND PUBLICATIONS$4,017
This account provides for various office supplies and publications
to be used by SA and OB staff and board members
Successor Agency Supplies & Publications$2,517
Oversight Board Supplies & Publications$1,500
PRINTING/MAILING/ADVERTISING$1,000$1,000
This account provides for required mailings, agenda printing,
and legal advertising
INFORMATION TECHNOLOGY$8,000
This account provides for annual replacement charges for
information technology items such as computers, printers,
and computer related items attributable to SA/OB; and
support/hosting for SA/OB web pages, which are required
by ABx1 26$5,500
Computer Document Storage related to Successor Agency$2,000
On-Line Muni Code related to Successor Agency
$500
OFFICE & EQUIPMENT$17,000
This account provides for office space rental and equipment
usage in City Hall
Rent
$15,000
Equipment$2,000
TOTAL ADMINISTRATIVE BUDGET$365,505
FUNDING SOURCES:
Total Administrative Costs$365,505
3% Administrative Allowance per ROPS 15-16A$ 365,505
Excess Administrative costs $0
F:\\ROPS\\La Quinta ROPS 15-16A\\Admin Budget Jul-Dec 2015 FINAL