HomeMy WebLinkAboutStaff Report 3.D 01/09/2017Agenda Item #3.D
DATE: January 09, 2017
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
7
FROM: Ingrid Alverde, Economic Development / Redevelopment Manage
r
SUBJECT: Resolution Adopting a July 1, 2017 — June 30, 2018 Recognized Obligation
Payment Schedule (ROPS 17-18) and Administrative Budget Pursuant to Health
and Safety Code Section 34177 (1)
RECOMMENDATION
It is recommended that the Petaluma Community Development Successor Agency (Successor
Agency) approve the Resolution Adopting a July 1, 2017 — June 30, 2018 Recognized Obligation
Payment Schedule (BOPS 17-18) 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 (Successor Agency) as a separate
legal body to oversee the dissolution of the former Petaluma Community Development
Commission (PCDC).
DISCUSSION
The Recognized Obligation Payment Schedule is the document that serves as the budgeting
authority for the Successor Agency. In the past it was updated and approved by the State of
California every six months and now it is approved once a year. The upcoming ROPS period is
July 1, 2017 — June 30, 2018 and is referred to as the ROPS 17-18 because it covers obligations
for fiscal year 17-18. The attached ROPS requests funds to pay for ongoing debt service and
administration. It also includes a request for funds to pay for the Rainier interchange crossing.
We are able to request these funds as a result of newly adopted legislation that allows cities to
recapture previous obligations related to State highway projects.
The State Department of Finance (DOF) noted in last year's ROPS approval letter that the
Successor Agency's request for the maximum administrative budget of $250,000 appeared to be
excessive. The letter suggests that the Oversight Board scrutinize future requests for
administrative funding. To date, the Successor Agency administrative fund balance is
($388,939) indicating that the administrative allowance does not even cover the extensive staff,
finance and legal support needed to manage the Successor Agency activities. The proposed
ROPS requests $250,000 for the annual administration budget - the maximum allowed by law.
The ROPS and the administrative budget are due to the DOF by March 1, 2017 and must first be
reviewed and approved by the Oversight Board. The Oversight Board is scheduled to review the
ROPS and administrative budget on January 18, 2017. The early due date provides sufficient
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 includes the ROPS 17-18 and the
administrative budget for your review and consideration (Exhibit A & B of the Resolution).
FINANCIAL IMPACTS
The ROPS 17-18, 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 Successor from July 1, 2017 — June 30, 2018.
ATTACHMENTS
Resolution Adopting the Fiscal Year 17-18 Recognized Obligation Payment Schedule
2
Attachment 1
RESOLUTION NO.
A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR
AGENCY ADOPTING A JULY 1, 2017 — JUNE 30, 2018 RECOGNIZED OBLIGATION
PAYMENT SCHEDULE ("ROPS 17-18") 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 was 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, newly adopted legislation requires a yearlong period for the ROPS; and
WHEREAS, the ROPS 17-18 and administrative budget, covering the period from July
1, 2017 — June 30, 2018, are due to the State Department of Finance (DOF) by February 1, 2017;
and
WHEREAS, the Oversight Board for the PCDSA must review and approve the ROPS
17-18 and administrative budget prior to their submission to DOF; and
WHEREAS, in adopting ROPS 17-18, the PCDSA will comply with all applicable
posting and notification requirements, including posting the ROPS 17-18 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
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WHEREAS, a draft ROPS 17-18 and administrative budget for the period July 1, 2017 —
June 30, 2018, 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 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 17-18 and
administrative budget; and
WHEREAS, in adopting the ROPS 17-18 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 17-18 and
administrative budget, including without limitation, the right to modify, amend, terminate or
challenge any obligation listed on the ROPS 17-18 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 July 1, 2017 — June
30, 2018 (ROPS 1748) 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 17-18 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 17-18 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.
Successor Agency:
County:
Recognized Obligation Payment Schedule (ROPS 17-18) - Summary
Filed for the July 1, 2017 through June 30, 2018 Period
Petaluma
Sonoma
Current Period Requested Funding for Enforceable Obligations
A Enforceable Obligations Funded as Follows (B+C+D):
B Bond Proceeds
C Reserve Balance
D Other Funds
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G):
F RPTTF
G Administrative RPTTF
H Current Period Enforceable Obligations (A+E):
Certification of Oversight Board Chairman:
Pursuant to Section 34177 (o) 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 successor
agency.
S Detail
/s/
Name
Signature
Exhibit A
17-18A Total
17-18B Total
(July - December)
(January - June)
ROPS 17-18 Total
$ 4,700,000
$ -
$ 4,700,000
4,700,000
-
4,700,000
$ 125,000
$ 5,606,429
$ 5,731,429
-
5,481,429
5,481,429
125,000
125,000
250,000
$ 4,825,000
$ 5,606,429
$ 10,431,429
Title
Date
5
Exhibit A
Exhibit A
7
Petaluma Recognized Obligation Payment Schedule (ROPS 17-18) - ROPS Detail
July 1, 2017 through June 30, 2018
(Report Amounts in Whole Dollars)
A B
C
D
E
F
G
H I J K L
M
N
O
P
O
R
S
T U
V W
17-18A Jul —December
17-188 Januar -June'
Fund Sources
Fund Sources
Contract/Agreement
ContracVAgreement
Total Outstanding
17-18A
17-18B
Item # Project Name7Debt Obligation
Obligation Type
Execution Date
Termination Date
Payee
Description/Project Scope
Project Area Debtor Obligation Retired ROPS 17-18 Total Bond Proceeds Reserve Balance Other Funds RPTTF
Admin RPTTF
Total
Bond Proceeds Reserve Balance Other Funds RPTTF
Admin RPTTF Total
<50 January 31, 2011 Cooperative
ImprovementAnfrestruclure
4/2512012
6/18/2047
City of Petaluma
January 31, 2011 Cooperative
N $ -
$
-
$ -
Agreement by and between the
Agreement by and between the
'. Petaluma Community Development
Petaluma Community Development
' Commission and the City of
Commission and the City of Petaluma
Petaluma as to Item 3 on Exhibit A,
the'101/East Washington
Interchange Project."
51 January 31, 2011 Coop Agreement
Improvemen9lnfrastmcture
42572012
6/18/2047
City of Petaluma
January 31, 2011 Cooperative
PCDC Merged 8,472,000 N $ ::4,700,000 4,700,000
$
x4,700,000,
5, "
by and between the Petaluma
Agreement by and between the
Community Development
Petaluma Community Development
Commission and the City of
Commission and the City of Petaluma
Petaluma as to Item 5 on Ex. A,
'Rainer Avenue Cross-town
Connector/Interchange Pro'."
52 January 31, 2011 Coop Agreement
Project Management Costs
4/252012
6/18/2047
City of Petaluma
January 31, 2011 Cooperative
N $
by and between the Petaluma
Agreement by and between the
Community Development
Petaluma Community Development
Commission and the City of
Commission and the City of Petaluma
Petaluma as to Item 1 on Fit. C,
'Staffing and Administrative
Expenses'
-53
N $ -
$
-
_.54
N $
$
$,
`55
N $
$
56
57
N $
$'
-
-
-
69
N $
$
"60
N $
$
,$
-`62
N $
$
64
N 5
$
': 65
N $
67
N $
Is
7
Exhibit A
Petaluma Recognized Obligation Payment Schedule (ROPS 17-18) - 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 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 on
and DDR RPTTF
distributed as
Rent,
Non -Admin
or before
Bonds issued on
balances
reserve for future
grants,
and
Cash Balance Information by ROPS Period
12/31/10
or after 01/01/11
1 retained
period(s)
I interest, etc.
I Admin
I Comments
ROPS 15-16B Actuals (01/01/16 - 06/30/16
1
Beginning Available Cash Balance (Actual 01/01/16)
203,321
10,033,093
67,615
2
Revenue/Income (Actual 06/30/16)
RPTTF amounts should tie to the ROPS 15-16B distribution from the
County Auditor -Controller during January 2016
472
1,821
5,560,097
3
Expenditures for ROPS 15-16B Enforceable Obligations (Actual
06/30/16)
-
-
-
3,588,067
4
Retention of Available Cash Balance (Actual 06/30/16)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
2,039,645
5
ROPS 15-16B RPTTF Balances Remaining
No entry required
6
Ending Actual Available Cash Balance
CtoG=(1 +2-3-4), H=(1 +2-3-4-5)
$ 203,793
$ 10,034,914
$ -
$ -
$ -
$ -
Petaluma Recognized Obligation Payment Schedule (ROPS 17-18) - Notes July 1, 2017 through June 30, 2018
Item # Notes/Comments
Exhibit A
E
Petaluma Recognized Obligation Payment Schedule (ROPS 17-18) - Notes July 1, 2017 through June 30, 2018
Item # Notes/Comments
Exhibit A
10
PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY
Administrative Budget FY 2017-2018
ROPS 17-18
Admin charges (wages, etc)
Professional Service/Audit
Utilities/Maintenance/Repairs
Legal Services
Office Supplies
Bank/Trustee fees/Financial oversight
FY 17-18A FY 17-18B Total for Year
$ 98,750 $
98,750
8,000
8,000
4,000
4,000
5,000
5,000
250
250
9,000
9,000
$ 125,000 $ 125,000 $ 250,000
Exhibit B
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