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Home My WebLink AboutStaff Report 4.C 2/3/2014 4g-et/t.dw Itww#4.3 gy p,r.Udt W 185$ DATE: February 3, 2014 TO: Honorable Mayor and Members of the City Council through City Manager Honorable Chair and Members of. the Petaluma Community Development Successor Agency Board through Executive Director pp FROM: Ingrid Alverde, Economic Development/ Redevelopment Manager Resolution Approving the Successor. Agency Recognized Obligation Payment Schedule for the period July 1, 2014—December 31, 2014 (ROPS #14-ISA) RECOMMENDATION It is recommended that the Petaluma Community Development Successor Agency (PCDSA) approve the Resolution Adopting a July 1, 2014 Through December 31, 2014 Recognized Obligation Payment Schedule (ROPS 14-15A) and Administrative Budget Pursuant to Health and Safety Code Section 34177 (I). (Attachment I) BACKGROUND On December 29, 2011, the California Supreme Court:upheld the constitutionality of ABx1 26 dissolving redevelopment agencies statewide as of February 1, 2012. The Council established the Petaluma Community Development Successor Agency (PCDSA) as its own legal body to oversee the dissolution of the former Petaluma Community Development Commission (PCDC). DISCUSSION The Successor Agency is required to adopt a six-month list of enforceable obligations called a Recognized.Obligation,Payment Schedule (ROPS), together with an administrative budget. The upcoming. ROPS period is -July 1; 2014 through December 31, 201-4 and is referred to as the 12OPS 14-15A because it'is the first budget for the _2014-15 fiscal year. The attached ROPS requests funds to pay for ongoing debt service and administration. It also includes a request to use available bond proceeds for theOld.Redwood Highway interchange improvements. The ROPS and the administrative budget are due to DOF by March 1, 2013 and must first be reviewed and approved by.the Oversight.Board. The Oversight Board is scheduled to review the ROPS and administrative budget in February of this year. The early due date provides sufficient Agenda Review: City Attorney (1. Finance Director City Manage time for DOF to review the listed items and confer with.Successor Agencies in time for the June distribution of property taxes. The attached resolution(Attachment 1) includes the ROPS 14- 15A and the administrative budget for your review and consideration (Exhibit A & B of Attachment 1). FINANCIAL IMPACTS The ROPS 14-15A, once approved by the Oversight Board and the State Department of Finance, will provide for the needed funds`to administer the PCDSA and pay for enforceable obligations of the PCDSA from July 1 —December 31, 2014. ATTACHMENTS 1. Resolution of the Petaluma Community Development Successor Agency Adopting a Six- Month Recognized Obligation Payment Schedule (ROPS 14-15A) and Administrative Budget Pursuant to Health and Safety Code Section 34177 (I) 2 Attachment 1 • RESOLUTION NO. A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY ADOPTING•A.JULY 1, 2014 THROUGH:DECEMBER 31, 2014 RECOGNIZED OBLIGATION PAYMENT SCHEDULE("ROPS 14-15a") AND ADMINISTRATIVE BUDGET PURSUANT TO.HEALTH AND SAFETY CODE SECTION 34177 (m) WHEREAS, the City of Petaluma (City) resolved to act as,the Petaluma Community Development Commission Successor Agency (PCDSA or Successor Agency) to, and assumed all rights and obligations of;.the former Petaluma Community Development Commission (PCDC), by Resolution No. 2012-03; and WHEREAS, the City Council established the PCDSA as an independent public entity pursuant to Health and Safety Code.Section 34173(g), on August 6, 2012, by Resolution No. 2012-118 N.C.S.; and WHEREAS, the liability of the PCDSA is limited pursuant tollealth and Safety Code Section 34I73(e) and other applicable law; and WHEREAS,the PCDSA is required to adopt a six month enforceable obligation payment schedule referred to as the Recognized Obligation Payment Schedule (BOPS), and an administrative budget, which:it has done for each of the initial six-month periods of the newly formed PCDSA; and WHEREAS, the sixth ROPS (ROPS 14-15A) and administrative budget, covering the period from July 1, 2014 through December 3.1, 2014, are due tothe;State Department of Finance (DOE) by March 1, 2014; and WHEREAS,the Oversight Board for the PCDSA must review and approve the RODS 14-15A and administrative budget prior to their submission to DOF; and WHEREAS, in adopting ROPS 14-15 A, the PCDSA will comply with all applicable posting!and notification requirements, including posting the ROPS 14-I5A on the Successor Agency's website and.providing a copy thereof to the Oversight Board for the PCDSA, the County Administrative Ofticer„the Department of Finance, and the Sonoma County Auditor- Controller; and WHEREAS,.a draft:ROPS 14-45A and administrative budget for the period July 1, 2014 through December 31, 2014„a copy of which is attached as Exhibit A & B, has been presented to the PCDSA, the.PCDSA is familiar with the contents thereof, and the Executive Director has 3 recommended approval of the same, subject to the contingencies and reservation of rights set forth in this Resolution; and WHEREAS, the PCDSA reserves the right to challenge the legality of Assembly Bill xl 26, AB 1484 and/or any implementing regulations, and to rescind its acceptance of Successor Agency rights and obligations, and reserves any and all rights concerning Assembly Bill xl 26 and AB 1484 pursuant to applicable law; and WHEREAS, the PCDSA reserves the right to further amend the ROPS 14-15A and administrative budget; and WHEREAS, in adopting.the ROPS 14-15A and administrative budget, the PCDSA does not intend to waive, nor shall the;PCDSA be deemed to have waived, any rights the PCDSA may have pursuant to or in connection with any obligation listed on the ROPS 14-I5A and administrative budget, including without limitation, the right to modify, amend, terminate or challenge any obligation listed on the ROPS 14-15A or the administrative budget. NOW, THEREFORE, BE IT RESOLVED BY PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY PURSUANT TO HEALTH AND SAFETY CODE 341710), that the Petaluma Community Development Successor Agency hereby: 1. Finds that the Recitals set forth above are true and correct, and are incorporated herein by reference. 2. Approves the Recognized Obligation Payment Schedule for the period July 1, 2014 through December 31, 2014 (ROPS 14-14A) and the administrative budget, attached hereto as Exhibit A & B, pursuant to Health and Safety Code section 34177(m), subject to all reservations of rights and contingencies set forth above. 3. Authorizes and directs the Executive Director or his designee to take all actions necessary to implement this Resolution, including without limitation, the submission of the draft ROPS 14-15A simultaneously to the Oversight Board for the PCDSA, the Sonoma County Administrative Officer, theSonoma County Auditor-Controller, and the State-Department of Finance; and the posting of this Resolution and the Recognized Obligation Payment Schedule 14-15A on the Successor Agency's website. 4. Declares that if any provision, sentence, clause, section, or part of this Resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remainder. 4 Exhibit B PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY Administrative Budget FY 2014-2015 ROPS 14-15 A & B FY 14-15A FY 14-15B Total for Year Wages and Benefits $ 95,290 $ 95,290 Professional Service/Audit 10;000 10,000 Utilities/Maintenance/Repairs 2;000 2,000 Legal Services 5,000 5,000 Office Supplies 250 250 Cell Phone 460 460 Office Rent 3,000 3,000 Bank/Trustee fees/Financial oversight 9,000 9,000 $ 125;000 $ 125,000 $ 250,000