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Home My WebLink AboutStaff Report 3.F 01/22/2018Agenda Item #3.F � a DATE: January 22, 2018 r, TO: Honorable Mayor and Members of the City Council through City Manager "y Honorable Chair and Members of the Petaluma Community Development Successor Agency Board through Executive Director FROM: Ingrid Alverde, Economic Development / Redevelopment Manage SUBJECT: Resolution Adopting a July 1, 2018 — June 30, 2019 Recognized Obligation Payment Schedule (ROPS 18 -19) and Administrative Budget Pursuant to Health and Safety Code Section 34177 (1) RECOMMENDATION It is recommended that the Petaluma Community Development Successor Agency approve the Resolution Adopting a July 1, 2018 — June 30, 2019 Recognized Obligation Payment Schedule (ROPS 18 -19) 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. DISCUSSION The Recognized Obligation Payment Schedule is the document that serves as the budgeting authority for the PCDSA. 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 RODS period is July 1, 2018 — June 30, 2019 and is referred to as the ROPS 18 -19 because it covers obligations for fiscal year 18 -19. The attached ROPS requests funds to pay for ongoing debt service and administration. The ROPS and the administrative budget are due to the Department of Finance (DOF) by February 1, 2018 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 24, 2018. 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 18 -19 and the administrative budget for review and consideration (Exhibit A & B of the Resolution). FINANCIAL IMPACTS The RODS 18 -19, once approved by the Oversight Board and the DOF, will provide the needed funds to administer the ( PCDSA and pay for enforceable obligations of the PCDSA from July 1, 2018 — June 30, 2019. ATTACHMENTS Resolution Adopting the Fiscal Year 18 -19 Recognized Obligation Payment Schedule 2 Attachment 1 RESOLUTION NO. A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY ADOPTING A JULY 1, 2018 — JUNE 30, 2019 RECOGNIZED OBLIGATION PAYMENT SCHEDULE ( "ROPS 18 -19 ") 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) 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 18 -19 and administrative budget, covering the period from July 1, 2018 — June 30, 2019, are due to the State Department of Finance (DOF) by February 1, 2018; and WHEREAS, the Oversight Board for the PCDSA must review and approve the ROPS 18 -19 and administrative budget prior to their submission to DOF; and WHEREAS, in adopting ROPS 18 -19, the PCDSA will comply with all applicable posting and notification requirements, including posting the ROPS 18 -19 on the PCDSA'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 18 -19 and administrative budget for the period July 1, 2018 — June 30, 2019, 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 PCDSA 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 18 -19 and administrative budget; and WHEREAS, in adopting the ROPS 18 -19 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 18 -19 and administrative budget, including without limitation, the right to modify, amend, terminate or challenge any obligation listed on the ROPS 18 -19 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, 2018 — June 30, 2019 (ROPS 18 -19) 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 18 -19 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 18 -19 on the PCDSA'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. 0 � E E � m 0 $ƒ c ) / Cl) 2 R $k / B m/ k/ E® m® aƒ 0 %\ 3j OE _ k @ 0 � E k � / \ / � k .. \ / n 0 k e � m § 0 Q� / . / � \ k . • § / / 0G \ \ e? W3 _ c § { ; E _A 2 ca + § Cl LO C14 7 t 2 m a i\ LU § > k / § E 2 ca + § 2 m a .. LU + \ § / ± § 0 LL \ f 2 t m \ 0 ƒ f 2 2 CL LL a a 0 \ § @ I E \ _0 \ k \ LU 0 \ d 2 [ $ \ \ / / [ / / \ ® \ \ / a. 2 y % ) a) E j 3 0 \ 3 j S < m o= w= o I / § § j \ ƒ ƒ « / / \ \ k / � \ /\§ SRS �\j /a\ e @ 2 (a /c > \ /\M M a) C) \w ®D 3J >/ -C § c: > .g % \ /�\ 23\\ %«02 2 °2$/ y2, £G /2 -0 Exhibit A w -y < mi Exhibit A Petaluma Recognized Obligation Payment Schedule (ROPS 18-19) - ROPS Detail July 1, 2018 through June 30, 2019 (Report Amounts in Whole Dollars) A B C_ 0 E F G H I L M N 0 P Q R S T U W 18-19A (July - December) 18-19B (January - Junpl Fund Sources Fund Sources Contract/Agreement Contract/Agreement Total Outstanding ROPS 18-19 18-19A 18-19B Item # Project Name/Debt Obligation ObligartionType Execution Date Termination Date Payee DescriptiordProject Scope Project Area Debt or Obligation Retired Total Bond Proceeds Reserve Balance Other Funds RPTTF AdmlnRPTTF — Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Total $ 69,367,000 $ 5,425,329 $ $ $ $ $ 125,000 -Total $ 125,000 1,$ $ $ 5.175�329 $ 125,000 $ 6,300.329 a TAB-200aA Tax ARocation Bonds Bonds Issued On or Before 1011/2003 5/1/2033 U.S. Bank Bonds issued to fund non-housing N S - $ - 3 TAB-2005A Tax Aflocation Bonds Bonds Issued On or Before 10/l/2005 5/112030 U,S. Bank Bonds issued to fund non-housing N $ $ REFINANCED 1213-1/10 projects 4 TAB-2007A Tax AMocation Bonds Bonds Issued On or Before 4/1/2007 511/2039 U.S. Bank Bonds issued to fund non-housing PCDC Merged N $ $ REFINANCED 12131/10 projects 5 TAB-2011 Tax Allocation Bonds Bonds Issued After 12f31/10 3/15/2011 5/1/2024 U.S. Bank Bonds issued to fund non-housing PCDC Merged N $ REFINANCED projects MY= 9_1 I I — ___ ON 3010 907-00- - N o, - , 0. MM , IN , _M HIM-? MINIMUM 7 PM-Financial Administration Admin Costs 9/112004 5/1/2039 Cityofpetaluma Fiscal oversight on bonds and Trustee PCDC Merged N $ $ Fees and Admin 9 1 0 M N 7--7 -g —INN MIME 12 HSG-Mobile Home Rent Control Miscellaneous 1131/2011 6/18/2047 Sonoma County CDC Cooperative Agreement PCDC Merged N $ $ Ord. KNE My 11MIAMMEME N 18 CIP-Old Redwood Hwy Interchange ImprovementAnfrastructure 15f712010 6/30/2016 3onoma Co. Trans. Agency Matching funds for construction PCDC Merged N $ $ 19 CIP-RainlerAve Cross-Town Improvemenbinfrastructure 5/10/2010 12131/2012 JRS Corp. Environmental PCDC Merged N $ $ Connector '06./3012014 �11 M No SIMON 27 CIP-EastWashIngton Interchange Improvementfinfrastructure 60200.9 Sonoma Co. Trans. Agency ROW Capital, ROW Support, Constr 'CDC Merged N $ $ $ Support 9 jffi'j 31 MISC-Office Equipment Lease Admin Costs 3/1/2011 2/28/2016 Discovery Systems Office equipment �CDC Merged N $ $ $ 32 MISC-Lecal Services Admin Costs 7/1/2011 61112039 Meyers Nave Attorneys Legal Services �CDC Merged N $ $ $ 35 MISC-Legal Services-Oversight Admin Costs 711100V 6/30/2013 Renne Sloan Holtzman Oversight Board legal services 'CDC Merged N $ $ Board Sakai 36 ue Review Dissolution Audits 8/15P2012 6/3012013 Pun & McGeady Audit services for Oversight Board 'CDC Merged N $ $ $ MINES n- MON, I _SIM 39 VA Admin Costs 1/1/2016 MO/2016 Petaluma Corn nunity =finlst a five Costs �CDC Merged 250,000 N $ 250,000 125,000 $ 125,000 125,00) 126,000 Development Successor Agency 40 -ITIGATION - Old Redwood & Litigation 8/2911994 6/30/2016 Meyers Nave Attorneys -egal Services for Litigation with DOF DCDC Merged - N $ - $ - $ - Rainier 41 LITIGATION - Old Redwood, Litigation 4129/2014 6/30/2016 Burke Williams & Sorensen Legal Services for Litigation with DOF PCDC Merged N $ $ $ Rainier, Co-Op, Agreement 42 Cash Flow Loan from City CIty/County Loans After 10/112014 6/3012o16 CityofPetaluma Cash Flow loan to cover expenses PCDC Merged N $ $ $ 6/27/11 M WRIM �201ff tmgm= 00�0_6 MaNy =10-p—M- 45 Bond Expenditure Agreement Bonds Issued On or Before 6/11/2016 6130/2016 City of Petaluma Expenditure of bond proceeds PCDC Merged - N $ - $ 12/31/10 according to bond indentures 46 TAB-2015A Tax Allocation Bonds Bonds Issued After 12131/10 3/1/2015 5/1/2033 U. S. Bank Bonds issued to fund non-housing PCDC Merged 17,640,000 N $ 1,287,004 $ 1,287,004 $ 1,287,004 projects 47 TAB-2015B Tax Allocation Bonds Bonds Issued After VJ31/i() 3/l/2015 6/112033 U. S. Bank Bonds issued to fund non-housing PCDC Merged 13,405,000 N $ 1,397,781 $ 1,397,781 $ 1,397,781 projects-- 49 8/2047 City of Petaluma January 31, 2011 Cooperative PCDC Merged N $ $ Agreement by and between the Petaluma Community Development commission and the City of Commission and the City of Petaluma Petaluma, as to Item I on Exhibit A the "Old Redwood Highway Interchange project.' (40 Exhibit A Petaluma Recognized Obligation Payment Schedule (ROPS 18 -19) - ROPS Detail July 1, 2018 through June 30, 2019 (Report Amounts in Whole Dollars) A 8 C D E F G H I J K L M N O P Q R 5 T U V W Item # Project Name/Debt Obligation Obligation Type Contract/Agreement Execution Date Contract/Agreement Termination Date Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired ROPS 18 -19 Total 18 -19A Jul - December 18 -19A Total 18 -19B (January -June 18 -19B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF 50 January 31, 2011 Cooperative Agreement by and between the Petaluma Community Development Commission and the City of Petaluma as to Item 3 on Exhibit A, the °101/East Washington Interchange Project." Improvement/Infrastructure 4252012 6/18/2047 City of Petaluma January 31, 2011 Cooperative Agreement by and between the Petaluma Community Development Commission and the City of Petaluma PCDC Merged N - 51 January 31, 2011 Coop Agreement by and between the Petaluma Community Development Commission and the City of Petaluma as to Item 5 on Ex. A, 'Rainer Avenue Cross -town Connector /Interchange Pro].' Improvementlinfrastructure 4/25/2012 6/18/2047 City of Petaluma January 31, 2011 Cooperative Agreement by and between the Petaluma Community Development Commission and the City of Petaluma PCDC Merged 3,772,000 N $ - $ - $ 52 January 31, 2011 Coop Agreement by and between the Petaluma Community Development Commission and the City of Petaluma as to Item i on Ex C, 'Staffing and Administrative Expenses' Project Management Costs 41252012 6/18/2047 City of Petaluma January 31, 2011 Cooperative Agreement by and between the Petaluma Community Development Commission and the City of Petaluma PCDC Merged - N $ - $ - $ 53 TAB -2017 Tax Allocation Bonds Bonds Issued After 12/31110 8/1/2017 11/1/2039 U. S. Bank Bonds Issued to fund non - housing projects PCDC Merged 34,300,000 N $ 2,490,544 5 - 2,490,544 $ 2,490,544'. 54 N $ - $ $ 55 N $ $ $ 56 N $ $ $ 57 N $ $ $ 58 N $ $ $ 59 N $ $ $ 60 N $ $ $ 611 N $ $ $ 62 N $ S $ 63 N $ $ $ 64 N $ - $ - $. 65 N $ $ $ - 66 N $ $ $ 67 N $ $ $ 68 N $ $ $ 69 N I $ $ $ 70 N $ - $ - $ 71 N $ $ $ 72 N $ $ § 73 N $ $ $ 74 N $ $ $ 75 N $ $ $ 76 N $ $ $ 77 N $ $ $ 78 N $ - $ - $. 79 N $ $ $ 801 N $ - $ - $ 81 N $ $ $ 82 N $ $ $ 83 N 5 $ § B4 N $ $ $ 85 1 1 1 1 N 1 $ $ $ W Exhibit A Petaluma Recognized Obligation Payment Schedule (RODS 18 -19) - Report of Cash Balances July 1, 2015 through June 30, 2016 (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 Sash Balance Tips Sheet A B C D E F G H I Fund Sources Bond Proceeds Reserve Balance Other RPTTF Prior ROPS period balances Prior ROPS and RPTTF Bonds issued on Bonds issued on DDR RPTTF distributed as Rent, Non -Admin Cash Balance Information for ROPS 15 -16 Actuals or before or after balances reserve for future grants, and (07/01/15 - 06/30/16) 12/31/10 01/01/11 retained period(s) interest, etc. Admin Comments 1 Beginning Available Cash Balance (Actual 07/01115) 203,160 11,171,039 - - - 2,015,885 2 Revenue /Income (Actual 06/30/16) RPTTF amounts should tie to the ROPS 15 -16 total distribution from the County Auditor - Controller during January 2016 and June 2016. 634 2,030 - - - 5,685,097 3 Expenditures for ROPS 15 -16 Enforceable Obligations (Actual 06/30/16) - - - - - 5,540,689 4 Retention of Available Cash Balance (Actual 06/30116) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) - I - I - I - I - 2,177,229 November 2016 Bond payment 5 ROPS 15 -16 RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance (06130/16) Cto G =(1 +2 -3 -4), H =(1 +2- 3 -4 -5) $ 203,794 1 $ 11,173,069 1 $ - $ - 1 $ - 1 $ (16,936) 0 x W w T O N O M d C .c O t O T O N T 75 N .4+ O z rn T T U) a as (D u U) c as a. c O c� .n O d N O v N E _ m O 41 E o d a LOZ-IOD) it E a� v x w rn r 0 N O M C S O L J3 .F.+ 00 V- 0 N r 75 7 N d O Z a) 7 00 V- cn a. N d v C d E A CL O c� .a O m N O C� d c � 7 4 N a LOO it E a> r PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY Administrative Budget FY 2018 -2019 ROPS 18 -19 Admin charges (wages, etc) Professional Service /Audit Utilities /Maintenance /Repairs Legal Services Office Supplies Bank/Trustee fees /Financial oversight FY 18 -19A FY 18 -19B 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 11