I. RECOMMENDATION:
Financial Services Director recommends approval of Resolution No. SA-338 approving a Professional Services Agreement between the Successor Agency to the Coalinga Redevelopment Agency and RSG Inc. for Continuing Disclosure Services for Fiscal Year 2020-21 to 2025-26.
II. BACKGROUND:
RSG has been preparing the Continuing Disclosure Report for the Successor Agency since Fiscal Year 2018. This report is a requirement of the 2018 Tax Allocation Refunding Bonds for the Successor Agency.
III. DISCUSSION:
The Indenture of Trust for the Bonds requires a Report to be prepared on an annual basis for the duration of the Bonds. RSG will provide the following services to comply with this requirement:
- Analyze and provide an Annual Disclosure Report for FY 2020-21 through 2025-26 containing information required by Section (k) of the Indenture, such as Coalinga Redevelopment Project assessed valuations, top 10 taxpayers, pledged tax revenues and debt service coverage, appeals, and schedule of future cumulative annual debt service.
- Provide the Annual Disclosure Report to the required bondholders by the due date of April 1st of each Fiscal Year.
3. Ensure that any shortfall between the amount of the cumulative RPTTF that may be paid under the tax increment limit in the Redevelopment Plan and the cumulative annual debt service remaining is listed on the Recognized Obligation Payment Schedule (“ROPS”) as an enforceable obligation.
RSG is very familiar with the Successor Agency’s financial background from serving as Fiscal Consultant during bond issuance and providing general Successor Agency consulting services. RSG’s completion of the Report will ensure that the ROPS requests sufficient funding for the Bonds and the Report.
IV. ALTERNATIVES:
Not approve the agreement.
V. FISCAL IMPACT:
RSG’s contract will lead to the commitment of $5,000 per year for six years, plus reimbursable expenses. RSG will prepare six Reports covering Fiscal Years (“FY”) 2020-21 through 2025-26, with a contract term ending June 30, 2027 (reports are prepared after the close of each fiscal year). Reimbursable expenses include third-party items that are required for the Report, such as the Fresno County Tax Roll. RSG’s continuing disclosure contract will be placed as a direct expense on the Successor Agency’s ROPS. Continuing disclosure is not considered an administrative expense.
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