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6. U'rofunded Pension �.iabili��es— Brian Prsnty Mr. Ponty pravided a brief synopsis of how this had been b�€ore khre�v'ersight Board a f�w times and how the actusry offered to da a report with the ira�ar�natfon o�th� PERS fiability, Mr. Ponty said�he PERS fiabifity has been reduc�d c�nsiderably ar�d he pravided�he spec°rfc figures. He asked the Oversight Board ko ap¢�rove the$2 muflion For tf�e unFunded OPE��nd paud pemsion liabqli�ies wauld carrp�back on the fcaurth ROPS. Mr. N�vas�sked �bocak a dper�rrrent that was sent to the City af Sc�uth San Francis�o and why the DOF d�es not have an afficial pasition. Mr. Ponty said that this s��ms tca indica��khat the conce�t is�cc�pta�le to khe DOF, but that they skifl want to get the cEetiaiGs nn hpw the figures were calcu�atec3/detecrr�ined. Mr. Navas asCced why th[s n�eds ta be handled now since athe¢'jurisdictions wifl be in the same situ��icsn. The Chair alsa made some comm�nts on this issu�. Mra par�ty believ�s that going to P'�FtS and addressing this nr�w is the ap�ropriake tim�so that khe �.ST aF 10 payments ean be placed r�n the fou�th RaPS. Vice Chair Rab��ts asked if this is goarag tra �e an allowed obdigation and if sti what are the nex�steps. f�r. Ponty nc�ted that the agreement still rr�eds to go ta the City Cauncii for approval. Again, Mr. Navas as�ced why we now�eed ta do khis sinc�Qther�genci�s will also need to hsandle this. Chair Halland said thak he has a different take on this and that the DOF is op�ra ta khis appra�ch, so he concurs v,rith it. Mr. �'onty said khat he has heard that som� agenci�s are hiring actua�y firr�s�a loak at this, but C�� is cornfar�able wik�thus approach. �ne Merr�der asked why the five�year timefine and iNr. Ponty sa¢d t[�is anras a skar�irrg point and th�at it balances�he city's desire to be paid over a reasonab[e amount of time peri�d withau�severefy r�ducing ih� r�sSd'ual distri�u�n�ns from the RPTTF. Chair Holland' a�d M�mb�r Navas thanked Mr, N'onty for answering multiple questivns on��is issue.The Chair nated tha�r�aw the aversight Board shnuld take actian by apting on the matfer. MJS Chris�ensen/ Rpberts ta approve Oversight�oard Reso�utipr� 1.2-45 as submikted by staff. Matican ��t-ries 6-� with Member Abbors absent. 7. AB 129I� Pass Through �aymea�ts- Brian �mnty Mr. Ponty said this issue was broughf to the City's at�er�tion earlier�his ye�r by Keiser Mars�nn.The dGscow�ry was tY�at in lake 2002 the City adopted an ordinan�e�ha�elim€raated th�debt�stablishm��t limits for the RDA. In doing s[�, pass throu�h payrnents shauld have kicked in. Once s��FF Faur�d this�ut,the City asked Mr, �ras�r tca Cal�ufate h�w mu�h veras aw�d to the a�ected entities. The paymer��.s�u'e�94p,pOQ to cover the r�kroactiv@ amounts and wtll ga on the faurth ROP5. Mr. P�nty s�id tt�at CECDs�f each pf the taxing agencies were inforrr�ed abauk this ar�d Mr. �raser was ava¢la�le to�r�sw�r any questeons. N1�'. Nalland saad that fihe documentation provid�d a fat af answers. There�vere some questions a�aut the forrrbula and Mr. Fraser saic� kFa�t it depen�s on which Formula each agenc}r bs using.Th� m�ney will stifl Flaw to Che agency but it might b� �and�r a di�Fer�nt cnm�utation. Memb�r Navas asked foc cnnfrrmation that the statute o�fim��akians is �hree years and Mr. Fraser confi�m�d. $. Priarity of Pass throuc�h Paymenfis und�r AB 1484— E3arba�ra Christensera Mr. Fpnty noted that kl�is is a� item that was req�aes�ed by t�s. Christensen to be pCaced o� the agenda and na acti4n is r�quired. Tl�is is mainly to note that the�urr'e�t l�gisfatian �faces�he afF�cted taxing entities at a disa�vantage. Ms. Chr�stensen noted khatA6 1484 c9�anged�he�uvay pass tf�rough payments are trea�etl frpm haw it uvas initially outlined i� AB 25. Q�'iginally, d�str��ukions fram the �:PTTF, incl�dinc� pass thraugh paymen�s, were supposed to �e equ�l to each taxing enti�ies'�rra rata share of property taxes(the AB 8 share). A& 1484 requir�s that pass through payments be r�ade prinr to any oth�r d'nstribut�ans from the RPT['F. The eFfect of this is that r�ost taxan� en�ities are not getting the�r AB$ pro rata share of the praperty taxes. Thr�se �geneies that have pass through paymer�ts are reeeiving mare than �heir AB 8 share. �rop 1A, a cons�itutinr�al araiendment passed in 2004, prohibits tf�e state fram alt�ring any tax�ng en�itwes'.A� 8 share. f�s Christ�nsen indicated th�t the Cou¢�Cy is making the caleul�tions as the �e�arkrr�ent oF Finanee h�s ins�ructed �h�m �a dca so. The questior� is wf�ether this calcufakion methpd �s cnns�i�u�icanal �r not. Ms. Chrastensen add�d khat Caunfif�ritle�he County is receiwing $5,�k r�illion dr�llars that is €�eing taking away from other tax�n� en�itres ko fu�d th�Courrty pass khrnugh. 5he noted that Redwoad City loses $548,(�00 Gecause of kk�is calculatian method. T�re Coflege C7cstrict and o��t�r school d(stricts are trying to puk togeCher a caalition o�cities and d�fi�er�nk ag�ncies to go to the Attorn�y General to�arouitle an apinion if"th�se calculatiarrs are c�ar�stitutional or not. She alsr� indicated the coalitio�n ecsufd also consult with ele�ted leaders on this matter.