HomeMy WebLinkAboutStaff Report 3.J 09/14/2015Agenda Item #3.J
DATE: September 14, 2015
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
FROM: Ingrid Alverde, Economic Development / Redevelopment Manager,'_
SUBJECT: Resolution Approving the Successor Agency Recognized Obligation Payment
Schedule for the period January 1, 2016 — June 30, 2016 (ROPS #15 -16B)
RECOMMENDATION
It is recommended that the Petaluma Community Development Successor Agency (PCDSA)
approve the Resolution Adopting a January 1, 2016 - June 30, 2016 Recognized Obligation
Payment Schedule (ROPS 15 -16B) and Administrative Budget Pursuant to Health and Safety
Code Section 34177 (1).
BACKGROUND
On December 29, 2011, the California Supreme Court upheld the constitutionality of ABxl 26
dissolving redevelopment agencies statewide as of February 1, 2012. The Council established
the Petaluma Community Development Successor Agency (PCDSA) as a separate 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 January 1, 2016 through June 30, 2016 and is refetfed to as the ROPS
15 -16B because it is the second budget for the 2015 -2016 fiscal year. The attached ROPS
requests funds to pay for ongoing debt service, administration and litigation. We are also adding
a request for funds to pay for a previously established Cooperative Agreement between the
former Petaluma Development Successor Agency and the City of Petaluma. Recent court rulings
and State Department of Finance (DOF) correspondence indicates that Petaluma may be eligible
to collect funds for the reinstated Cooperative Agreement that was previously denied by the DOF
The ROPS and the administrative budget are due to the DOF by October 1, 2015 and must first
be reviewed and approved by the Oversight Board. The Oversight Board is scheduled to review
the ROPS and administrative budget on September 23, 2015. The early due date provides
sufficient time for DOF to review the listed items and confer with Successor Agencies in time for
the December distribution of property taxes. The attached resolution includes the ROPS 15 -16B
and the administrative budget for your review and consideration (Exhibit A & B of the
Resolution).
FINANCIAL IMPACTS
The ROPS 15 -16B, 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 January 1, 2016 through June 30, 2016.
ATTACHMENTS
Resolution Adopting a Six -Month Recognized Obligation Payment Schedule
2
Attachment 1
RESOLUTION NO.
A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR
AGENCY ADOPTING A JANUARY 1, 2016 — JUNE 30, 2016 RECOGNIZED
OBLIGATION PAYMENT SCHEDULE ( "ROPS 15 -1611") AND ADMINISTRATIVE
BUDGET PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 (1)
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 to Health and Safety Code
Section 34173(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 (ROPS), and an
administrative budget, which it has done for each of the initial six -month periods of the newly
formed PCDSA; and
WHEREAS, the ROPS 15 -16B and administrative budget, covering the period from
January 1, 2016 - June 30, 2016, are due to the State Department of Finance (DOF) by October
1, 2015; and
WHEREAS, the Oversight Board for the PCDSA must review and approve the ROPS
15 -16B and administrative budget prior to their submission to DOF; and
WHEREAS, in adopting ROPS 15 -16B, the PCDSA will comply with all applicable
posting and notification requirements, including posting the ROPS 15 -165B on the Successor
Agency's website and providing a copy thereof to the Oversight Board for the PCDSA, the
County Administrative Officer, the Department of Finance, and the Sonoma County Auditor-
Controller; and
WHEREAS, a draft ROPS 15 -16B and administrative budget for the period January 1,
2016 - June 30, 2016, a copy of which is attached as Exhibit A & B, has been presented to the
3
PCDSA, the PCDSA is familiar with the contents thereof, and the Executive Director has
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 15 -16B and
administrative budget; and
WHEREAS, in adopting the ROPS 15 -16B 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 15 -16B and
administrative budget, including without limitation, the right to modify, amend, terminate or
challenge any obligation listed on the ROPS 15 -16B or the administrative budget.
NOW, THEREFORE, BE IT RESOLVED BY THE PETALUMA COMMUNITY
DEVELOPMENT SUCCESSOR AGENCY PURSUANT TO HEALTH AND SAFETY
CODE 34171(1), 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 January 1,
2016 - June 30, 2016 (ROPS 15 -16B) and the administrative budget, attached hereto
as Exhibit A & B, pursuant to Health and Safety Code section 34177(1), 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 15 -16B simultaneously to the Oversight Board for the PCDSA, the
Sonoma County Administrative Officer, the Sonoma County Auditor- Controller, and
the State Department of Finance; and the posting of this Resolution and the
Recognized Obligation Payment Schedule 15 -16B 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.
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Petaluma 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
O
P
Contract/
Item #
Project Name /
Obligation
Agreement
Contract]
Agreement
Payee
Description/
Project Area
Debt Obligation
Type
Execution
Termination Date
Project Scope
Total
Bond
Date
Other Funds
Non - Admin
Admin
Item #
Project Name /
Debt Obligation
Outstanding
Debt or
Retired
Six -Month
Total
Obligation
2
TAB -2003A Tax Allocation
Bonds Issued On
10/1/2003
5/1/2033
U.S. Bank
Bonds issued to fund non-
PCDC Merged
$110,044,287
Bonds - REFINANCED
or Before 12/31/10
$
$
$5,571,129
housing projects
$5,899,289
`3
TAB -2005A Tax Allocation
Bonds Issued On
10/1/2005
5/1/2030
U.S. Bank
Bonds issued to fund non-
PCDC Merged
Bonds - REFINANCED
or Before 12/31/10
Bonds- REFINANCED
housing projects
4
TAB -2007A Tax Allocation
Bonds Issued On
4/1/2007
51112039
U.S. Bank
Bonds issued to fund non-
PCDC Merged
Bonds
or Before 12/31/10
$
housing projects
Bonds - REFINANCED
5
TAB -2011 Tax Allocation Bonds
Bonds Issued
3115/2011
5!112024
U.S. Bank
Bonds issued to fund non-
PCDC Merged
4
TAB -2007A Tax Allocation
After 12/31/10
N
housing projects
1,587,711
45
Bond Expenditure Agreement
Bonds Issued On
or Before 12131/10
6/11/2015
N/A
City of Petaluma
Expenditure of bond
proceeds according to
PCDC Merged
46
TAB -2015A Tax Allocation
Bonds Issued
5
U. S. Bank
Bonds issued to fund non -
PCDC Merged
Bonds
After12 /31110
1,175,918
$1,175,918
housing projects
Bonds
47
TAB -2015B Tax Allocation
Bonds Issued
U. S. Bank
Bonds issued to fund non-
PCDC Merged
45
Bonds
After 12/31/10
N
203,160
housing projects
Cooperative Agreements -
46
TAB -2015A Tax Allocation
19,525,000
N
Exhibit A/Section 8 - Economic
$1,327,594
Bonds
Cooperative Agreement as
48
Dev. Programs; Exhibit
Miscellaneous
4/25/2012
6/18/2047
City of Petaluma
reinstated by Resolution of the
PCDC Merged
16,025,000
BlSection 3- Affordable Hsg
1,358,906
Oversight Board
$1,358,906
programs as reinstated by
#2012 -03 adopted April 25, 2012
Resolution #2012 -03 of the OB
Cooperative Agreements -
A
B
I
J
K
L
M
N
O
P
Non - Redevelopment Property Tax Trust Fund
(Non- RPTTF)
RPTTF
Total
Bond
Reserve
Other Funds
Non - Admin
Admin
Item #
Project Name /
Debt Obligation
Outstanding
Debt or
Retired
Six -Month
Total
Obligation
proceeds
Balance
$110,044,287
$203,160
$
$
$5,571,129
$125,000
$5,899,289
2
TAB -2003A Tax Allocation
N
$
Bonds- REFINANCED
3
TAB -2005A Tax Allocation
N
$
Bonds - REFINANCED
4
TAB -2007A Tax Allocation
56,614,367
N
1,587,711
$1,587,711
Bonds
5
TAB -2011 Tax Allocation
9,092,560
N
1,175,918
$1,175,918
Bonds
45
Bond Expenditure Agreement
203,160
N
203,160
$203,160
46
TAB -2015A Tax Allocation
19,525,000
N
1,327,594
$1,327,594
Bonds
47
TAB -2015B Tax Allocation
16,025,000
N
1,358,906
$1,358,906
Bonds
Cooperative Agreements -
Exhibit A/Section 8 - Economic
48
Dev. Programs; Exhibit
8,584,200
N
41,000
$41,000
B /Section 3- Affordable Hsg
programs as reinstated by
Resolution #2012 -03 of the OB
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Petaluma Recognized Obligation Payment Schedule (BOPS 15 -16B)
Report of Prior Period Adjustments
Reported for the ROPS 14 -15B (January 1, 2015 through June 30, 2015) Period
Pursuant to Health and Safety Code (HSC) section 34186 (a)
(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 -15B 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
1 J
RPTTF Ex endlures
Non -RPTTF Expenditures
Net $A Non - Adnin
and Adnin PPA
Bond Proceeds
Reserve Balance
Other Funds
Offset ROPS 15 -16B
Non - Adnin
Adnin
Requested RPTTF)
Available
Available
Difference
RPTTF
RPTTF
(If total actual
Differ ence
(BOPS 14 -15B
(ROPS 14-156
exceed.total
Net Lesser of
llfKisless than[,
distributed + all other
disidbried+ 41 other
Project Name!
authorize(l, the
Authorized/
thedifferencels
avallable as of
Item#
Debt Obligation
Authorized
Actual
Authorized
Actual
Authorized
Actual
Authorized
01/1/15)
0111/16)
Available
$ -
$ -
$ 596,753
$ 596,753
$ 75,000
$ =.
$ 3,636,650
$ .3,636,650
2
TAB -2003A Tax
$ 135,976
$ -
596,753
596,753
$ - -- 395,362
395,362
395,362
395,362
3
TAB-2005A Tax
$ _
$ 1,120,310
1,120,310
1,120,310
1,120,310
4
TAB -2007A Tax
$
$ ".924,106
924,106
924,106
924,106
Allocation Bonds
$
$ > 972,286
972,286
$
5
—
TAB -2011 Tax
$
$ 105,873.
105,873
972,286
972,286
Allocation Bonds
$ -
$ ,119,713
73,681
$ 45,032
40
LITIGATION -Old
$ :'..45,032
$
105,873
105,873
Redwood & Rainier
$ -
41
LITIGATION -Old
118,713
118,713
Redwood, Rainer,
Co -O A reemen
42
Cash Flow Loan
-
75,000
from CII
K
L
M
N
O
P
q
R
I 6
T
RPTTF Ex endlures
Net $A Non - Adnin
and Adnin PPA
(Amount Used to
Offset ROPS 15 -16B
Non - Adnin
Adnin
Requested RPTTF)
Available
Difference
RPTTF
(If total actual
Differ ence
(ROPS 14-156
exceed.total
Net Lesser of
llfKisless than[,
disidbried+ 41 other
Net Lesser of
authorize(l, the
Authorized/
thedifferencels
available as of
Authorized/
total difference is
Net Difference
Available
Actual
.zero)
Authorized
0111/16)
Available
Actual
zero)
(M-R)
SA Commends
$ 3,636,650
$ 3,591,618
$ '45,032
$ 125,000
$ 125,000
$ 125,000
$ 135,976
$ -
$ 45,032
$ - -- 395,362
395,362
$
$ _
$ 1,120,310
1,120,310
$
$
$ ".924,106
924,106
$ -
$
$ > 972,286
972,286
$
$
$ 105,873.
105,873
$
$ -
$ ,119,713
73,681
$ 45,032
$ :'..45,032
$
$ -
$ -
rWX:ir.� :
PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY
Administrative Budget FY 2015 -2016
ROPS 15 -16 A & B
Admin charges (wages, etc)
Professional Service /Audit
Utilities /Maintenance /Repairs
Legal Services
Office Supplies
Cell Phone
Office Rent
Bank /Trustee fees /Financial oversight
FY 15 -16A FY 15 -16B
$ 95,290 $
95,290
8,000
8,000
4,000
4,000
5,000
5,000
250
250
460
460
3,000
3,000
9,000
9,000
Total for Year
$ 125,000 $ 125,000 $ 250,000
0