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2015 09 16 OBSepf�Gl�LrGv OVERSIGHT 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 Wednesda.y, September 16, 2015 at 2:00 p.m. CALL TO ORDER Roll Call: Board Members: Henderson, Howell, Marshall, Maysels, Nelson, Novak, Chair Osborne PLEDGE OF ALLEGIANCE PUBLIC COMMENT This is the time set aside for public comment on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. When addressing the Oversight Board, please state your name and address. CONFIRMATION OF AGENDA PRESENTATIONS - NONE WRITTEN COMMUNICATIONS - NONE CONSENT ITEMS 1. MINUTES OF FEBRUARY 18, 2015 BUSINESS ITEMS 1. ADOPT RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 1 THROUGH JUNE 30, 2016. (Resolution No. OB 2015-003) 2. ADOPT RESOLUTION APPROVING SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR JANUARY 1 THROUGH JUNE 30, 2016 (Resolution No. OB 2015-004 ) STUDY SESSION - NONE REPORTS AND INFORMATIONAL ITEMS - NONE CHAIR AND BOARD MEMBERS' ITEMS EXECUTIVE DIRECTOR ITEMS 1. VERBAL UPDATE ON SUCCESSOR AGENCY MATTERS ADJOURNMENT The next regular meeting of the Oversight Board will be held on October 7, 2015 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 September 16, 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 September 11, 2015. Dated: September 11, 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 the City Clerk's office at (760) 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Oversight Board, arrangements should be made in advance by contacting the City Clerk's office at (760) 777- 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 inspection at the City Clerk's counter at City Hall located at 78-495 Calle Tampico, La Quinta, CA 92253, during normal business hours. CONSENT ITEM #1 OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY MINUTES WEDNESDAY, FEBRUARY 18, 2015 A meeting of the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency was called to order at 2:01 p.m. by Vice Chair Osborne. PRESENT: Board Members Henderson, Howell, Vice Chair Osborne, ABSENT: Board Member Marshall STAFF PRESENT: William Ihrke, City Attorney, Frank Director of the Successor Agency PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed PRESENTATIONS - None APPROVAL OF MINUTES Maysels, Nelson, Novak, J. Spevacek, Executive Motion - A motion was made by Board Members Novak/Maysels to approve the Oversight Board Minutes of September 17, 2014, as submitted. Motion passed, with Henderson/Howell abstaining. BUSINESS SESSION 1. A motion was made by Henderson/Maysels to elect Lee Osborne as the Chairman of the Oversight Board. Motion passed unanimously. Board Member Peter Nelson volunteered to be the Vice Chairman. Motion was made by Osborne/Henderson. Motion passed unanimously 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 (Resolution No. OB 2015-001) RESOLUTION NO. OB 2015-001 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 MOTION - A motion was made by Board Members Novak/Henderson to adopt Resolution No. OB 2015-001. Motion passed 6 ayes, 0 noes, 1 absent. 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, 2015 THROUGH DECEMBER 31, 2015 (Resolution No. OB 2015- 002) RESOLUTION NO. OB. 2015-002 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 MOTION - A motion was made by Board Members Howell/Maysels to adopt Resolution No. OB 201 5-002. Motion passed 6 ayes, 0 noes, 1 absent REPORTS AND INFORMATION ITEMS - None ADJOURNMENT There being no further business, it was moved by Board Members Henderson/Howell to adjourn the meeting at 2:11 p.m. Motion passed unanimously. Respectfully submitted, Pam Nieto Oversight Board Secretary OVERSIGHT BOARD MEETING 2 February 18, 2015 BUSINESS ITEM NO. 1 City of La Quinta OVERSIGHT BOARD MEETING: September 16, 2015 STAFF REPORT AGENDA TITLE® ADOPT RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 1 THROUGH JUNE 30, 2016. RECOMMENDATION Adopt a Resolution approving a Recognized Obligation Payment Schedule for the period of January 1 through June 30, 2016. EXECUTIVE SUMMARY • A Recognized Obligation Payment Schedule (ROPS) identifies the obligations of the former Redevelopment Agency (RDA) that must be paid. • The Successor Agency to the former RDA must submit a ROPS to the Department of Finance (DOF), State Controller's Office, the County Administrative Officer, and the County Auditor -Controller every six months. The attached ROPS (Exhibit A to the resolution) identifies $17,179,945 of Enforceable Obligations that must be funded during the second half of Fiscal Year 2015/16. FISCAL IMPACT The Successor Agency requests DOF authorization to expend $9,588,068 from bond proceeds, and an allocation of $7,951,877 of Redevelopment Property Tax Trust Fund revenue (RPTTF). The $7,951,877of RPTTF funding would be allocated as follows: $221,123 for administrative expenses (for the six-month period), $1,976,864 to repay the City General Fund loan and $5,393,890 is to pay bond interest and principal payments. BACKGROUND/ANALYSIS The ROPS identifies the obligations of the former RDA that the Successor Agency must fund during the second six months of 2015/16. These obligations include tax allocation bond debt service payments, third party contracts, administrative costs and repayment of the City General Fund loan. The ROPS must be submitted to the above -mentioned entities by October 5, 2015. If the ROPS is submitted late, the City will be subject to a civil fine of $10,000 per day. The DOF then has 45 days to make its final determination regarding the enforceable obligations, the dollar amounts, and funding sources. Following the DOF final determination, the Successor Agency has five business days to request additional DOF review and an opportunity to meet and confer on disputed items. ALTERNATIVES As this is a requirement of the DOF, staff does not recommend an alternative. Report prepared by: Rita Conrad, Finance Director Report approved by: Frank J. Spevacek, Executive Director RESOLUTI ON NO.OB 2015- A RESOLUTI ON OF THE OVERSI GHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUI NTA REDEVELOPMENT AGENCY ADOPTING RECOGN I ZED OBLI GATI ON PAYM EN T SCHEDULE 15-16 B FOR THE PERI OD OF JAN UARY 1, 2016 THROUGH JUNE 30, 2016 WHEREAS, the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency ("Oversight Board") has been established to direct the Successor Agency to the La Quinta Redevelopment Agency ("Successor Agency") to take certain actions to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in accordance with California Health and Safety Code; and WHEREAS, the former La Quinta Redevelopment Agency ("Agency") was engaged in activities to execute and implement the Project Area No. 1 Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, as part of the 2011/2012 State budget bill, the California Legislature enacted and the Governor signed, Assembly Bill 26 ("ABx1 26") requiring that each redevelopment agency be dissolved and Assembly Bill 27 ("ABx1 27") that would have allowed redevelopment agencies to remain in 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 adopted City Council Resolution No. 2012-002, affirmatively electing to be the "successor agency" to the Agency; and WHEREAS, on June 27, 2012, the California Legislature enacted, and the Governor signed, Assembly Bill 1484 ("AB 1484"), which, among other things, 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, a "Recognized Obligation Payment Schedule" ("ROPS") that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34171; and Resolution No. OB 2015- Adoption of Recognized Obligation Payment Schedule Adopted: September 16, 2015 Page 2 of 3 WHEREAS, the Successor Agency has prepared and approved RODS 15-16B for the period of January 1, 2016 through June 30, 2016; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occu rred . 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 RODS 15-16B. 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 RODS 15-16B attached hereto as Exhibit A as the Recognized Obligation Payment Schedule for the period of January 1, 2016 through June 30, 2016. Pursuant to Health & Safety Section 34173(e), the Successor Agency's 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 15-16B 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. SEC11ON 5. The Oversight Board Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board to the Successor Agency to the La Quinta Redevelopment Agency held this 16th of September 2015, by the following vote: Resolution No. OB 2015- Adoption of Recognized Obligation Payment Schedule Adopted: September 16, 2015 Page 3 of 3 AYES: NOES: ABSENT: ABSTAI N : LEE OSBORNE, Chairperson Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency ATTEST: Pam Nieto Oversight Board Secretary DCH I BI T A Recognized Obligation Payment Schedule (ROPS 15-1613) - Summary Filed for the January 1, 2016 through June 30, 2016 Period Name of Successor Agency: La Quinta Name of County: Riverside Current Period Requested Funding for Outstanding Debt or Obligation Six -Month Total Enforceable Obligations Funded with Non -Redevelopment Property Tax Trust Fund (RPTTF) Funding A Sources (B+C+D): $ 9,588,068 B Bond Proceeds Funding (ROPS Detail) 8,897,830 C Reserve Balance Funding (ROPS Detail) 690,238 D Other Funding (ROPS Detail) - E Enforceable Obligations Funded with RPTTF Funding (F+G): $ 7,591,877 F Non -Administrative Costs (ROPS Detail) 7,370,754 G Administrative Costs (ROPS Detail) 221,123 H Total Current Period Enforceable Obligations (A+E): $ 17,179,945 Successor Agency Self -Reported Prior Period Adjustment to Current Period RPTTF Requested Funding I Enforceable Obligations funded with RPTTF (E): 7,591,877 J Less Prior Period Adjustment (Report of Prior Period Adjustments Column S) (18,280) K Adjusted Current Period RPTTF Requested Funding (I-J) $ 7,573,597 County Auditor Controller Reported Prior Period Adjustment to Current Period RPTTF Requested Funding L Enforceable Obligations funded with RPTTF (E): 7,591,877 M Less Prior Period Adjustment (Report of Prior Period Adjustments Column AA) - N Adjusted Current Period RPTTF Requested Funding (L-M) 7,591,877 Certification of Oversight Board Chairman: Pursuant to Section 34177 (m) 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 agency. /s/ Name Signature Title Date La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - ROPS Detail January 1, 2016 through June 30, 2016 (Report Amounts in Whole Dollars) A B c D E F G H I J K L M N O P Funding Source Non -Redevelopment Property Tax Trust Fund (Non-RPTTF) RPTTF Contract/Agreement Contract/Agreement Total Outstanding Item # Project Name / Debt Obligation Obligation Type Execution Date Termination Date Payee Description/Project Scope Project Area Debt or Obligation Retired Bond Proceeds Reserve Balance Other Funds Non-Admin Admin Six -Month Total $ 414,359,357 $ 8,897,830 $ 690,238 $ $ 7,370,754 $ 221,123 - $ 17,179,945 7 2011 Tax Allocation Bonds - Bonds Issued After 7/3/2005 9/1/2036 US Bank Bonds to fund promects 1 and 2 55,478,956 N 107,543 942,316 $ 1,049,859 8 2011 Tax Allocation Bonds - Bonds Issued After 7/3/2005 9/1/2039 US Bank Bonds to fund projects 1 and 2 14,642,053 N 235,353 $ 235,353 Taxable 12/31 /10 9 Annual Continuing Disclosure Fees 1/17/2012 9/1/2039 Willdan Financial Services Preparation of annual continuing 1 and 2 4,000 N 4,000 $ 4,000 Statements disclosure reports per Federal regulations 10 Bond Holder Fees Fees 6/16/2005 9/1/2039 US Bank Fees for holding administration and 1 and 2 4,000 N 4,000 $ 4,000 distribution of bond proceeds 11 SilverRock Infrastructure Design Professional 8/16/2006 12/31/2014 RBF Consulting Infrastructure design and engineering 1 742,543 Y $ - Services to su ort develo ment of SilverRock 12 Construction of Washington Street OPA/DDA/Constructi 10/1/2008 11/30/2032 La Quinta Housing Written commitment to US 2 18,529,850 N 2,142,038 $ 2,142,038 Apartments Site Improvements & on Authority Department of Agriculture -Rural Rehabilitation Project Development to rehabilitate & construct improvements to Washington Street Apartments 15 Construction of Washington Street Professional 7/3/2011 7/31/2016 Tall Man Group Project & Construction Management 2 756,780 N 100,000 $ 100,000 Apartments Site Improvements & Services for Washington Street Apartments Site Rehabilitation Project Improvements & Rehabilitation Project 17 Washington Street Apartments Project Management 1/1/2014 9/1/2032 City of La Quinta Project Management Costs - Staff 2 300,000 N 50,000 $ 50,000 Rehabilitation Project Costs Time, Non Personnel to administer rehab of 72 affordable units and addition of 24 senior units 18 Washington Street Apartments Project Management 7/1/2012 7/1/2016 Rutan & Tucker Project Management Costs - Legal 2 30,000 N 30,000 $ 30,000 Rehabilitation Project Costs 21 Water and Sewer Agreement for Improvement/Infrastr 6/11/2005 12/31/2020 Coachella Valley Water Future infrastructure improvements 1 16,626,644 Y $ - future development at SilverRock ucture District required for future development of SilverRock by Domestic Water & Sanitation System Installation and Irrigation Agreement 22 Administrative Allowance Admin Costs 1/1/2014 9/1/2039 City of La Quinta Administrative Allowance per ABx1 26 1 and 2 221,123 N 221,123 $ 221,123 3% of ROPS 23 Series A 2013 TARB Bonds Issued After 12/23/2013 9/1/2033 US Bank Refund 1998, 2001, 2002, 2003 TABs 133,684,975 N 2,167,231 $ 2,167,231 12/31 /10 24 Series B 2013 TARB Bonds Issued After 12/23/2013 9/1/2032 US Bank Refund 1998, 2001, 2002, 2003 TABs 32,416,083 N 512,740 $ 512,740 12/31 /10 25 Advances from City General Fund City/County Loans 6/30/1994 9/1/2030 City of La Quinta Loans made from the General Fund to 33,777,113 N 1,976,864 $ 1,976,864 approved for repayment by On or Before the former RDA Oversi ht Board 6/27/11 27 2014 Bonds Bonds Issued After 7/9/2014 9/1/2034 US Bank Refund 2004 Bonds 99,986,750 N 1,528,250 $ 1,528,250 12/31 /10 28 SilverRock Infrastructure Professional 6/11/2005 12/31/2020 Various Roadwork and improvements to 6,575,792 N 6,575,792 $ 6,575,792 Services support development 29 2014 Bonds requesting funding for Bonds Issued After 7/9/2014 9/1/2034 US Bank Refund 2004 Bonds - correction for 90,360 N 90,360 $ 90,360 unfunded obligations due to certain 12/31/10 March 2015 debt service circumstances 30 Administrative Allowance for ROPS Admin Costs 1/1/2014 9/1/2039 City of La Quinta Administrative Allowance per ABx1 26 1 and 2 492,335 N 492,335 $ 492,335 14-15A requesting funding for (3% of ROPS) for ROPS14-15A unfunded obligations due to certain insufficient tax increment circumstances La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (1), 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. For tips on how to complete the Report of Cash Balances Form, see [ INSERT URL LINK TO CASH BALANCE TIPS SHEET ] A B C D E I F G H I Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS Prior ROPS period balances RPTTF Bonds Issued Bonds Issued and DDR RPTTF distributed as Rent, Non-Admin on or before on or after balances reserve for future Grants, and Cash Balance Information by ROPS Period 1 12/31/10 01/01/11 1 retained period(s) Interest, Etc. Admin Comments ROPS 14-15B Actuals (01/01/15 - 06/30115) 1 Beginning Available Cash Balance (Actual 01/01115) Bond Proceeds post 1/1/11 reduced $3,294,431 for bond reserve previously included in proceeds in error. Cash balances Other & RPTTF updated 9,287,285 27,979,180 3,112,987 769,644 3,332,833 to better reflect actual activity. 2 Revenue/Income (Actual 06/30/15) RPTTF amounts should tie to the ROPS 14-15B distribution from the County Auditor -Controller during January 2015 124,893 2,749,294 3 Expenditures for ROPS 14-15B Enforceable Obligations (Actual 06/30/15) RPTTF amounts, H3 plus H4 should equal total reported actual expenditures in the Report of PPA, Columns L and Q 2,422,749 5,836,841 4 Retention of Available Cash Balance (Actual 06130/15) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 14-15B RPTTF Prior Period Adjustment RPTTF amount should tie to the self -reported ROPS 14-15B PPA in the No entry required Report of PPA, Column S 18,280 6 Ending Actual Available Cash Balance C to G = (1 + 2 - 3 - 4), H = (1 + 2 - 3 - 4 - 5) $ 9,287,285 $ 27,979,180 $ 690,238 $ $ 894,537 $ 227,006 ROPS 15-16A Estimate (07/01/15 - 12/31/15) 7 Beginning Available Cash Balance (Actual 07/01115) (C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6) $ 9,287,285 $ 27,979,180 $ 690,238 $ - $ 894,537 $ 245,286 8 Revenue/Income (Estimate 12/31/15) RPTTF amounts should tie to the ROPS 14-15B distribution from the County Auditor -Controller during June2015 11,716,243 9 Expenditures for ROPS 15-16A Enforceable Obligations (Estimate 12/31/15) 12,548,994 10 Retention of Available Cash Balance (Estimate 12131/15) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10) $ 9,287,285 $ 27,979,180 $ 690,238 $ - $ 894,537 $ (587,465) La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - Report of Prior Period AdjustmE Reported for the ROPS 14-15B (January 1, 2015 through June 30, 2015) Period Pursuant to Health and Safety Code (H: (Report Amounts in Whole Dollars) ROPS 14-15B Successor Agency (SA) Self -reported Prior Period Adjustments (PPA): Pursuant to HSC Section 34186 (a), SAs are required to report the differences between their actual available funding and their actual expenditures for the ROPS 14-15B (January through June 2015) period. The amount of Redevelopment Property Tax Trust Fund (RPTTF) approved for the ROPS 15-16B (January through June 2016) period will be offset by the SA's self -reported ROPS 14-1513 prior period adjustment. HSC Section 34186 (a) also specifies that the prior period adjustments self -reported by SAs are subject to audit by the county auditor -controller (CAC) and the State Controller. A B c D I E I F G H I J K L M I N 1 O P Q R S Non-RPTTF Expenditures RPTTF Expenditures Bond Proceeds I Reserve Balance I Other Funds Project Name / Item # Debt Obligation Authorized Actual Authorized Actual Authorized Actual Authorized $ 2,995,940 $ 226,668 $ 2,422,749 $ 2,422,749 $ $ $ 5,339,723 $ 2 1998 Tax Allocation - - - 3 2001 Tax Allocation 4 2002 Tax Allocation Bonds - Tax Exempt 5 2003 Tax Allocation Bonds - Taxable 6 2004 Tax Allocation Bonds - Tax Exempt 7 2011 Tax Allocation 1,063,984 1,063,984 Bonds - Taxable 8 2011 Tax Allocation 236,428 236,428 - Bonds - Taxable 9 Annual Continuing - 10,000 Disclosure Statements 10 Bond Holder Fees - 15,140 11 SilverRock 25,000 209,315 - Infrastructure 12 Construction of 2,142,038 Washington Street Apartments Site Improvements & Rehabilitation Project 13 Construction of Washington Street Apartments Site Improvements & Rehabilitation Project 14 Construction of Washington Street Apartments Site Improvements & Rehabilitation Non-Admin Admin Net SA Non-Admin and Admin PPA (Amount Used to Offset ROPS 15-16B Requested RPTTF) Available RPTTF (ROPS 14-15B stributed + all other available as of 01/1/15) Net Lesser of Authorized / Available Actual Difference (If K is less than L, the difference is zero) Authorized Available RPTTF (ROPS 14-15B distributed + all other available as of 01/1/15) Net Lesser of Authorized / Available Actual Difference (If total actual exceeds total authorized, the total difference is zero) Net Difference (M+R) 5,339,723 $ 5,339,723 $ 5,411,803 $ 18,280 $ 425,038 $ 425,038 $ 425,038 $ 425,038 $ - $ 18,280 10,000 1 $ 10,000 1 3,260 1 $ 6,7401 1 1 $ 6,740 15,140 $ 15,140 $ 11,540 $ 11,540 La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - Report of Prior Period AdjustmE Reported for the ROPS 14-15B (January 1, 2015 through June 30, 2015) Period Pursuant to Health and Safety Code (H: (Report Amounts in Whole Dollars) ROPS 14-15B Successor Agency (SA) Self -reported Prior Period Adjustments (PPA): Pursuant to HSC Section 34186 (a), SAs are required to report the differences between their actual available funding and their actual expenditures for the ROPS 14-15B (January through June 2015) period. The amount of Redevelopment Property Tax Trust Fund (RPTTF) approved for the ROPS 15-16B (January through June 2016) period will be offset by the SA's self -reported ROPS 14-1513 prior period adjustment. HSC Section 34186 (a) also specifies that the prior period adjustments self -reported by SAs are subject to audit by the county auditor -controller (CAC) and the State Controller. A B c D E F G H I J K L M N O P Q R S Non-RPTTF Expenditures RPTTF Expenditures Net SA Non-Admin and Admin PPA (Amount Used to Offset ROPS 15-16B Bond Proceeds Reserve Balance Other Funds Non-Admin Admin Requested RPTTF) Available Available Difference RPTTF RPTTF (If total actual (ROPS 14-15B Difference (ROPS 14-15B exceeds total distributed + all other Net Lesser of (If K is less than L, distributed + all other Net Lesser of authorized, the Project Name / available as of Authorized / the difference is available as of Authorized / total difference is Net Difference Item # Debt Obligation Authorized Actual Authorized Actual Authorized Actual Authorized 01/1/15) Available Actual zero) Authorized 01/1/15) Available Actual zero) (M+R) $ 2,995,940 $ 226,668 $ 2,422,749 $ 2,422,749 $ $ $ 5,339,723 $ 5,339,723 $ 5,339,723 $ 5,411,803 $ 18,280 $ 425,038 $ 425,038 $ 425,038 $ 425,038 $ $ 18,280 15 Construction of 100,000 15,975 - - $ - $ - $ - Washington Street Apartments Site Improvements & Rehabilitation Project 16 Construction of $ $ $ Washington Street Apartments Site Improvements & Rehabilitation Project 17 Washington Street 50,000 1,378 $ $ - $ - Apartments Rehabilitation Project 18 Washington Street 30,000 $ $ $ - Apartments Rehabilitation Project 19 Coral Mountain 16,902 $ $ - $ - Partners Disposition and Development Agreement 20 Coral Mountain 30,000 $ $ $ - Partners Disposition and Development Agreement 21 Water and Sewer $ $ $ - Agreement for future development at SilverRock 22 Administrative $ - $ $ - Allowance 23 SeriesA2013 1,122,337 1,122,337 1,095,969 1,095,969 $ 1,095,969 1,095,969 $ $ TARB 24 Series B 2013 519,271 519,271 $ 519,271 519,271 $ $ - TARB La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - Report of Prior Period AdjustmE Reported for the ROPS 14-15B (January 1, 2015 through June 30, 2015) Period Pursuant to Health and Safety Code (H: (Report Amounts in Whole Dollars) ROPS 14-15B Successor Agency (SA) Self -reported Prior Period Adjustments (PPA): Pursuant to HSC Section 34186 (a), SAs are required to report the differences between their actual available funding and their actual expenditures for the ROPS 14-15B (January through June 2015) period. The amount of Redevelopment Property Tax Trust Fund (RPTTF) approved for the ROPS 15-16B (January through June 2016) period will be offset by the SA's self -reported ROPS 14-1513 prior period adjustment. HSC Section 34186 (a) also specifies that the prior period adjustments self -reported by SAs are subject to audit by the county auditor -controller (CAC) and the State Controller. A B c D I E I F G H I J K L M I N 1 O P Q R S Non-RPTTF Expenditures RPTTF Expenditures Bond Proceeds I Reserve Balance I Other Funds Project Name / Item # Debt Obligation Authorized Actual Authorized Actual Authorized Actual Authorized $ 2,995,940 $ 226,668 $ 2,422,749 $ 2,422,749 $ $ $ 5,339,723 25 Advances from City - - 1,797,725 General Fund approved for repayment by Oversight Board 26 Long-range Property Management Plan Implementation Services 27 2014 Bonds - 1,901,618 28 SilverRock 602,000 Infrastructure Non-Admin Admin Net SA Non-Admin and Admin PPA (Amount Used to Offset ROPS 15-16B Requested RPTTF) Available Available Difference RPTTF RPTTF (If total actual (ROPS 14-15B Difference (ROPS 14-15B exceeds total distributed + all other Net Lesser of (If K is less than L, distributed + all other Net Lesser of authorized, the available as of Authorized / the difference is available as of Authorized / total difference is Net Difference 01/1/15) Available Actual zero) Authorized 01/1/15) Available Actual zero) (M+R) $ 425,038 $ 5,339,723 $ 5,339,723 $ 5,411,803 $ 18,280 $ 425,038 $ 425,038 $ 425,038 $ - $ 18,280 1,797,725 $ 1,797,725 1,797,725 $ - $ - 1,901,618 1 $ 1,901,618 1 1,991,978 La Quinta Recognized Obligation Payment Schedule (ROPS 15-16B) - Notes January 1, 2016 through June 30, 2016 Item # Notes/Comments 29 For ROPS period 14-15B a clerical error was made where the wrong amount was requested for the debt service for the 2014A bonds. The debt service amount should have been $1,991,978 but only $1,901,618 was requested in error. The difference of $90,360 was made up for using other RPTTF available and now the City is requesting funding from Agency Reserve for unfunded obligations due to certain circumstances to correct this error. For ROPS period 14-15A there was insufficient tax increment to reimburse the City for the 3% admin cost allowance and the Tax Increment payment was reduced by the full admin cost request of $492,335, the City is now requesting funding from Agency Reserve for this shortage as unfunded obligations due to certain circumstances 30 BUSINESS ITEM NO. 2 Oty of La Quinta OVEZSI GHT BOARD MEETI ING; September 16, 2015 AGENDATI TLE- ADOPT RESOLUTION APPROVI NGSUCCESSORAGENNCYADM IN I STRATI VE BUDGET FOR JANUARY 1 THROUGH JUNE 30, 2016 RECOM MEN DATI ON Adopt a resolution approving the Successor Agency Administrative Budget for the period of January 1 through June 30, 2016. EXECUTIVE SUMMARY The La Quinta Successor Agency (SA) administers the former Redevelopment Agency's wind -down activities and the Oversight Board (OB) must approve SA actions. ABx1 26 (Dissolution Act) authorizes an administrative allowance to carry out wind -down activities; the allowance may not exceed three percent of the property tax allocation listed on the Recognized Obligation Payment Schedule, subject to review and approval by the Department of Finance (DOF). TheABx1 26 requiresthe SAto prepare an administrative budget every six months. Once the budget is approved by the SA, the OB is required to review and approve it. FI SCAL I M PACT For the period of January 1 through June 30, 2016, the property tax allocation for non - administrative costs totals $7,370,754. Three percent of this total is $221,123 and the total expected administrative costs for the period are $221,123. BACKGROU N D/ ANALYSI S ABx1 26 provides an administrative allowance for all successor agencies to carry out wind -down activities of the former redevelopment agencies and to administer the oversight boards. The estimates below include staff time required to carry out SA and OBactivities: Personnel Costs Professional Costs Supplies/Publications Printing/Mailing/Advertising Information Technology Costs Office & Equipment Costs Total Administrative Costs $ 158,509 $ 42,550 $ 4,064 $ 1,000 $ 8,000 $ 7,000 $ 221,123 The two major cost components are personnel costs and professional contract services. Personnel costs are related to My 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 Exhibit A to the resolution. Once the SA reviews and approves the administrative budget, the budget must be reviewed and approved by the OB. While ABx1 26 does not require administrative budgets to be subm itted to the DOF, the DOF does review the actions of oversight boards the day after the oversight board meeting takes place. Therefore, the DOF may question an oversight board's approval of a SA's administrative budget. ALTEMNATI VES As this is a requirement of the DOF, staff does not recommend an alternative. Report prepared by: Rita Conrad, Finance Director Report approved by: Frank J. Spevacek, Executive Director RESOLUTION NO.OB 2015 - 004 A RESOLUTI ON OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QU I NTA REDEVELOPMENT AGENCY APPROVING THE SUCCESSOR AGENCY ADM I NI STRATI V E BUDGET FOR THE PERI OD OF JAN UARY 1, 2016 THROUGH JUNE 30, 2016. WHEREAS, the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency ("Oversight Board" 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 (collectively, the "Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, as part of the 2011/2012 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 341770) requires each successor agency to prepare a proposed administrative budget every six months setting forth the successor agency's 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 January 1, 2016 through June 30, 2016 (the "Administrative Budget"); and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occu rred . Resolution No. OB2015-004 Adoption of SA Administrative Budget Adopted: September 16, 2015 Page 2 of 2 NOW THEREFORE, BE IT RESOLVED the Oversight Board of the Successor Agency to the 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. SEC110N 2. Approval of Administrative Budget. The Oversight Board hereby approves the Administrative Budget, which Administrative Budget is attached hereto as Exhibit A. 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. SECII ON 4. The Oversight Board Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board held this 16th day of September, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAI N : LEE OSBORNE, Chairperson Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency ATTEST: PAM NI ETO Oversight Board Secretary EXH I BI T A SUCCESSOR AGENCY/OVERSIGHT BOARD January 1, 2016 to June 30, 2016 ADMINISTRATIVE BUDGET (Submitted on ROPS 15-16B) PERSONNEL $158,509 Includes base salary plus benefits for Finance, City Clerk, and City Manager's Office to administer Successor Agency functions and to administer Oversight Board support. CONTRACT SERVICES $42,550 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 $5,000 League of California Cities Dues & Seminars/Webinars related to ABx1 26 $1,950 Legal Services for Successor Agency $25,000 Consulting Services for Successor Agency $10,600 SUPPLIES AND PUBLICATIONS $4,064 This account provides for various office supplies and publications to be used by SA and OB staff and board members Successor Agency Supplies & Publications $2,564 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 This account provides for office space rental and equipment usage in City Hall Rent $5,000 Equipment $2,000 TOTAL ADMINISTRATIVE BUDGET FUNDING SOURCES: Total Administrative Costs 3% Administrative Allowance per ROPS 15-16A $7,000 $221,123 $221,123 $221,123 Excess Administrative costs $0