2016 01 19 SA SpecialSpecial SUCCESSOR AGENCY TO RDA AGENDA 1
JANUARY 19, 2016
Agendas and staff reports are now
available on the City’s web page:
www.la-quinta.org
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Special SUCCESSOR AGENCY TO RDA AGENDA 2
JANUARY 19, 2016
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Special SUCCESSOR AGENCY TO RDA AGENDA 3
JANUARY 19, 2016
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CITY AS SUCCESSOR AGENCY TO RDA 1 SEPTEMBER 15, 2015
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City of La Quinta
SUCCESSOR AGENCY MEETING: January 19, 2016
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION APPROVING A RECOGNIZED OBLIGATION PAYMENT
SCHEDULE OF THE FORMER LA QUINTA REDEVELOPMENT AGENCY FOR THE PERIOD OF
JULY 1, 2016 TO JUNE 30, 2017.
RECOMMENDATION
Adopt a Resolution approving a Recognized Obligation Payment Schedule for the period
of July 1 through June 30, 2017.
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), State Controller’s Office, the County Administrative
Officer, and the County Auditor-Controller annually.
The attached ROPS (Attachment 1) identifies $29,981,733 of Enforceable
Obligations that must be funded during 2016/17.
FISCAL IMPACT
The SA requests DOF authorization to expend $8,997,830 from bond proceeds, and an
allocation of $20,622,721 of property tax revenue (RPTTF). The $20,622,721 of RPTTF
funding would be allocated as follows: $250,000 for administrative expenses, $2,283,601
to repay the City General Fund loan and $18,089,120 to pay bond interest and principal
payments.
BACKGROUND/ANALYSIS
SB 107 changed the ROPS reporting process from two semi-annual submittals to one
annual submittal due in February each year. The ROPS identifies the obligations of the
former RDA that the SA must fund during 2016/17. 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 February 1, 2016. If the
ROPS is submitted late, the City will be subject to a civil fine of $10,000 per day. The DOF
then has until April 15, 2016, to make its final determination regarding the enforceable
obligations, the dollar amounts, and funding sources. Once this ROPS is submitted, staff
will prepare the Last and Final ROPS.
CONSENT 2
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ALTERNATIVES
As this is a requirement of the DOF, staff does not recommend an alternative.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, Executive Director
Attachment: 1. ROPS 16-17 - Summary
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RESOLUTION NO. SA 2016 -
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE LA
QUINTA REDEVELOPMENT AGENCY ADOPTING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE 16-17
FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30,
2017
WHEREAS, the City Council of the City of La
applicable) previously approved and adopted (i) the Redevelopment Plan for La Quinta
applicable); and (ii) the Redevelopment Plan for La Quinta Redevelopment Project Area No.
and
WHEREAS, the former La Quinta Redevelopment Agency was
engaged in activities to execute and implement the Project Area No. 1 Redevelopment
(Health and Safety Code § 33000, et seq.) ; 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
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-successor a gency; and
WHEREAS, on June 27, 2012, the California Legislature enacted, and the
, and on September 22, 2015, Senate
, which, among other things, made certain revisions to certain of the
statutes added by ABx1 26, and all other bills that have amended ABx1 26, are
collectively referred to as the redevelopment dissolution law (Part 1.85 of Division 24
of the Health and Safety Code); and
WHEREAS, Health and Safety Code Section 34177 requires successor agencies
to prepare and adopt, on an annual basis,
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Resolution No. SA 2016-
Adoption of Recognized Obligation Payment Schedule
Adopted: January 19, 2016
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, Successor Agency to the La Quinta Redevelopment Agency
staff have prepared ROPS 16-17 for the period of July 1, 2016 to
June 30, 2017; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW THEREFORE, BE IT RESOLVED, by 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 16-17. In order to enable the Successor Agency to
strictly comply with the redevelopment dissolution law, and based on the Recitals set
forth above, the Successor Agency hereby approves ROPS 16-17 attached hereto as
Exhibit A as the Recognized Obligation Payment Schedule for the period of July 1,
2016 through June 30, 2017. Pursuant to Health & Safety Section 34173(e), the
for the obligations
on the attached schedule, is limited to the total sum of property tax revenues it
receives pursuant to the redevelopment dissolution law.
SECTION 3. Implementation. The Successor Agency hereby authorizes and directs
the Executive Director to submit ROPS 16-17 to the Oversight Board of the City as
and, after approval by the Oversight Board, to submit a copy of the approved ROPS 16-
17 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 Successor Agency hereby declares that it would have adopted this
Resolution irrespective of the invalidity of any particular portion thereof.
SECTION 5. The Successor Agency Secretary shall certify to the adoption of this
Resolution.
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Resolution No. SA 2016-
Adoption of Recognized Obligation Payment Schedule
Adopted: January 19, 2016
Page 3 of 3
PASSED, APPROVED, AND ADOPTED at the meeting of the Successor Agency to
the La Quinta Redevelopment Agency held this 19th of January 2016, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
LINDA EVANS, Chairperson
City of La Quinta Acting as Successor Agency
to the La Quinta Redevelopment Agency
ATTEST:
______________________________
SUSAN MAYSELS, Secretary
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
_______________________________
WILLIAM H. IHRKE, Counsel
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
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City of La Quinta
SUCCESSOR AGENCY MEETING: January 19, 2016
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION APPROVING THE SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017
RECOMMENDATION
Adopt a resolution approving the Successor Agency Administrative Budget for the period
of July 1, 2016 through June 30, 2017.
EXECUTIVE SUMMARY
The Successor Agency (SA) administers the former Redevelopment Agency’s wind-
down activities and the Oversight Board (OB) holds approval authority over SA
actions.
SB 107 provides for an administrative allowance to carry out these wind-down
activities, which may not exceed three percent of the prior fiscal year’s adjusted
Redevelopment Property Tax Trust Fund (RPTTF) allocation.
SB 107 requires the SA to prepare an administrative budget annually.
Once the budget is approved by the SA, the OB is required to review and approve it.
FISCAL IMPACT
For the period of July 1, 2016 through June 30, 2017 estimated costs related to SA and OB
administration are $250,000. The maximum amount allowed by the new formula
specified in SB 107 is $505,016.
BACKGROUND/ANALYSIS
SB 107 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 maximum allowance is three percent of the prior year’s adjusted RPTTF
distribution which is $16,833,891. Three percent of the adjusted prior year’s RPTTF is
$506,016. Estimated costs associated with administration of the SA and OB are
$250,000.
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The estimates below include staff time required to carry out SA and OB activities:
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, bond administration, 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 SB 107 does not require administrative budgets to be submitted to the DOF, the
DOF does review the actions of oversight boards. Therefore, the DOF may question an
.
ALTERNATIVES
As this is a requirement of the DOF, staff does not recommend an alternative.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, Executive Director
PERSONNEL $99,700
SUPPLIES & SERVICES $2,000
CONTRACT SERVICES $120,300
SUPPLIES AND PUBLICATIONS $4,000
PRINTING/MAILING/ADVERTISING $1,000
INFORMATION TECHNOLOGY $6,000
OFFICE & EQUIPMENT $17,000
$250,000
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RESOLUTION NO. SA 2016 -
A RESOLUTION OF THE CITY OF LA QUINTA ACTING AS
THE SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1,
2016 THROUGH JUNE 30, 2017.
WHEREAS City, as
applicable) elected to act as the Successor Agency and 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
he provisions of the California
Community Redevelopment Law (Health and Safety Code § 33000, et seq
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 34177(j) 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 July 1, 2016 through June 30, 2017 (the Administrative Budget );
and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW THEREFORE, BE IT RESOLVED, by City of La Quinta Acting as the Successor
Agency to La Quinta Redevelopment Agency, does hereby resolve as follows:
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Resolution No. SA 2016-
Adoption of SA Administrative Budget
Adopted: January 19, 2016
Page 2 of 3
SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated
herein by reference.
SECTION 2. Approval of Administrative Budget. The Successor Agency 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 Successor
Agency hereby declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion thereof.
SECTION 4. The Successor Agency Secretary shall certify to the adoption of this
Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the City of La Quinta Acting
as the Successor Agency to La Quinta Redevelopment Agency held this 19th day of
January, 2016, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
LINDA EVANS, Chairperson
City of La Quinta Acting as Successor Agency
to the La Quinta Redevelopment Agency
ATTEST:
______________________________
SUSAN MAYSELS, Secretary
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
(AGENCY SEAL)
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Resolution No. SA 2016-
Adoption of SA Administrative Budget
Adopted: January 19, 2016
Page 3 of 3
APPROVED AS TO FORM:
_______________________________
WILLIAM H. IHRKE, Counsel
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
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SUCCESSOR AGENCY/OVERSIGHT BOARD JULY 2016 TO JUNE 2017
ADMINISTRATIVE BUDGET
PERSONNEL $99,700
City Manager $23,700
Accounting Manager $21,100
Finance Director $18,800
Management Assistant $7,400
Deputy City Clerk $3,400
City Clerk $6,600
Financial Services Specialist $18,700
SUPPLIES & SERVICES $2,000
CONTRACT SERVICES $120,300
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 $1,900
Legal Services for Successor Agency $45,200
Consulting Services for Successor Agency $63,200
SUPPLIES AND PUBLICATIONS $4,000
This account provides for various office supplies and publications
to be used by SA and OB staff and board members
Successor Agency Supplies & Publications $2,500
Oversight Board Supplies & Publications $1,500
PRINTING/MAILING/ADVERTISING $1,000
This account provides for required mailings, agenda printing,
and legal advertising
INFORMATION TECHNOLOGY $6,000
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 $3,500
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 $250,000
EXHIBIT A
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