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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 1 Special SUCCESSOR AGENCY TO RDA AGENDA 2 JANUARY 19, 2016 2 Special SUCCESSOR AGENCY TO RDA AGENDA 3 JANUARY 19, 2016     3 4 CITY AS SUCCESSOR AGENCY TO RDA 1 SEPTEMBER 15, 2015 5 6 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 7 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 8 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, 9 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. 10 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 11 12 A T T A C H M E N T 1 A T T A C H M E N T 1 1 3 14 1 5 1 6 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. 17 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 18 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: 19 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) 20 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 21 22 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 23 24