Loading...
HomeMy WebLinkAbout9/30/13 OVERSIGHT BOARD AGENDA SPECIALNOTICE OF SPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY NOTICE IS HEREBY GIVEN that the Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency will hold a Special Meeting on Monday, September 30, 2013 at 10:30 a.m., at City Hall North, Conference Room A, 1600 Truxtun Avenue, Bakersfield, California, for the purpose of considering the following: SPECIAL MEETING 1. ROLL CALL 2. PUBLIC STATEMENTS 3. NEW BUSINESS a. Minutes of the September 6, 2013 special meeting b. Amended Recognized Obligation Payment Schedule (ROPS 13-14 B) and administrative budget for the period from January 1, 2014 through June 30, 2014. 4. BOARD COMMENTS 5. ADJOURNMENT /s/ J Phillip Bentley J. Phillip Bentley, Chairman of the Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency SPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA Monday, September 30, 2013 10:30 a.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 1. ROLL CALL 2. PUBLIC STATEMENTS 3. NEW BUSINESS a. Minutes of the September 6, 2013 special meeting b. Amended Recognized Obligation Payment Schedule (ROPS 13-14 B) and administrative budget for the period from January 1, 2014 through June 30, 2014. 4. BOARD COMMENTS 5. ADJOURNMENT OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: September 30, 2013 1 AGENDA ITEM: 3.a TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Minutes of the September 6, 2013 special meeting RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: S: \OVERSIGHT BOARD OF SUCCESSOR AGENCY\Agenda Reports\Agenda Report MINUTES.docx 9/24/2013 4:06 PM 1. OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY MINUTES MEETING OF SEPTEMBER 6, 2013 Conference Room A, City Hall North, 1600 Truxtun Avenue Special Meeting 10:00 a.m. SPECIAL MEETING -10:00 a.m. ACTION TAKEN ROLL CALL Present: Chairperson Bentley, Board Members Burke (seated at 10:07 a.m.), Burrow, Jay, Quiring, Tandy, Teglia Absent: none 2. PUBLIC STATEMENTS None. 3. NEW BUSINESS a. Minutes of the February 25, 2013 special meeting. Board Member Burrow advised members of the Board that he would be abstaining from voting on the approval of the minutes as he was not present at that meeting. Motion by Board Member Jay, seconded by APPROVED Board Member Quiring for approval of the AS BURKE minutes. ASS BURROW b. A Resolution of the Oversight Board to the RES OB 002 -13 Successor Agency of the Dissolved Bakersfield Redevelopment Agency approving the Amended and Restated Reimbursement Agreement between the City of Bakersfield and the Successor Agency to the Bakersfield Redevelopment Agency. Deputy City Attorney Rudnick made staff comments. Motion by Board Member Quiring, seconded APPROVED by Board Member Burrow, to adopt the AS BURKE Resolution. 3. Bakersfield, California, September 9, 2013 — Page 2 NEW BUSINESS continued ACTION TAKEN C. A Resolution of the Oversight Board to the RES 06003 -13 Bakersfield Redevelopment Agency approving a Long -Range Property Management Plan pursuant to Health and Safety Code Section 34191.5. Deputy City Attorney Rudnick made staff comments. Motion by Board Member Teglia, seconded APPROVED by Board Member Jay, to adopt the Resolution. d. Recognized Obligation Payment Schedule RES 06004 -13 (ROPS 13 -14B) and administrative budget for the period from January 1, 2014 through June 30, 2014. Finance Director Smith made staff comments, submitted revised payment schedules to members of the Board and recommended the adoption of the Recognized Obligation Payment Schedule as presented. Finance Director Smith responded to questions of the Board. Deputy City Attorney Rudnick advised the Board that a Hearing is set for October 25, 2013 to deal with items in dispute with the Department of Finance. He responded to additional questions of the Board. Motion by Board Member Burke, seconded APPROVED by Board Member Jay, to adopt a Resolution approving the Recognized Obligation Payment Schedule for the period from January 1, 2014 through June 30, 2014. e. Correspondence dated June 28, 2013 from Public Economics, Inc. ( "PEI ") Deputy City Attorney made staff comments and responded to questions of the Board. Motion by Board Member Teglia, seconded by APPROVED Board Member Quiring, to receive and file the Staff Report and correspondence from PEI. Bakersfield, California, September 9, 2013 - Page 3 4. BOARD COMMENTS ACTION TAKEN Board Member Burrow asked when the next Oversight Board meeting will be held. Finance Director Smith responded that the Board will meet approximately six months from now, unless something happens from litigation. 5. ADJOURNMENT Chair Person Bentley adjourned the meeting at 10:32 a.m. CHAIR of the Oversight Board to the Successor Agency ATTEST: Acting SECRETARY OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: September 30, 2013 AGENDA ITEM: 3.b. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Amended Recognized Obligation Payment Schedule (ROPS 13 -14 B) and administrative budget for the period from January 1, 2014 through June 30, 2014. RECOMMENDATION: Staff recommends adoption of a Resolution of the Oversight Board to the Successor Agency of the dissolved Bakersfield Redevelopment Agency approving the Amended Recognized Obligation Payment Schedule (ROPS 13 -14 B) and administrative budget for the period January 1, 2014 through June 30, 2014. BACKGROUND: State law AB 26 requires the Oversight Board to review and approve a Recognized Obligation Payment Schedule (ROPS) looking forward for each six month period from January to June and from July to December of each year. The adopted ROPS is then reviewed by the Department of Finance (DOF), the State Controllers' Office (SCO) and the Kern County Auditor Controllers Office. Once the DOF approves the ROPS, the document then becomes the basis for County disbursements of funds to the Successor Agency to make debt service payments and pay other enforceable obligations of the former Bakersfield Redevelopment Agency. The Oversight Board met on September 6, 2013 and adopted ROPS 13 -14 B, which addresses payment requirements of Enforceable Obligations for the six month period from January 1, 2014 through June 30, 2014. As you may recall, the DOF had again changed the structure and content of the forms that make up the ROPS, with revised guidelines and instructions. The adopted ROPS was submitted to the Department of Finance (DOF) on September 6, 2013. The DOF initiated discussions with City staff on Monday, September 16, 2013 regarding questions and comments on the ROPS submittal. During the week of Sept. 16 - 20, 2013 several phone calls and email communications took place between the City and the DOF. As a result of these discussions it became evident to City staff that in order to ensure that the Successor Agency is able to obtain (and retain) sufficient funds to pay the obligations anticipated during the six month period, that the ROPS must be amended to better align with the DOF's current interpretation of State law. S:Wdmin\Admin Repo rts\S uccesso r Agency \SA - OB - Admin ROPS 13 -14 B 2 Sept 30 mtg.docx 9/25/2013 9:08 AM AGENDA REPORT Page 2 The revisions made to the ROPS 13 -14 B are generally the result of City staff interpreting the new instructions of the new forms differently than the intentions of the DOF. During previous review sessions on previous ROPS submittals, the DOF has allowed the retention of funds previously authorized and funded for Enforceable Obligations. Given this history, City staff did not resubmit a duplicate funding request for funds that had already been authorized and funded. The DOF has now made it clear during their initial review of our Sept. 6, 2013 ROPS submittal that they intent to re- capture (sweep) any remaining funds not spent and make no accommodation for any sort of timing difference that might fall outside the specific six month period of approval. This new interpretation by the DOF now requires the City as Successor Agency to request funding for authorized obligations that have already been funded when there has been any delay in payment due to timing differences or project delays. This is not a problem with our debt service items as they are strictly scheduled, but it does create issues with our housing projects and associated down payment assistance funding. Staff also determined, in an abundance of caution, that we should add potential payment of Prop 1C Grant funds to this ROPS period in case the 19'" Street Plaza project is able to begin prior to June 2014. This item was listed as an obligation on the previous ROPS, but no funding was listed during the January to June 2014 period. Technically, it has absolutely no impact on the amount of tax revenue allocated to the Successor Agency needed to meet enforceable obligations, but the DOF looks at and authorizes the spending of all Successor Agency funds regardless of their source, so we felt it was prudent to add an estimated payment amount. We continue to list the items previously rejected by the DOF, which are still in dispute and pending further litigation. These items include the $3 million Park 20'" Senior /Veteran housing project and $1.2 million down payment assistance for the Millcreek Courtyard Senior housing. Additionally, we are listing the "reinstatement" the three Inter - agency loans with the City that were approved by the Oversight Board at their September 6, 2013 meeting. Actual repayment of the loans cannot begin until the next ROPS cycle, but the items with outstanding principal balances are back on the list. Health and Safety code section 34177(j) also requires the Oversight Board to approve the Successor Agency's administrative budget. The proposed administrative budget of the Successor Agency of the dissolved Bakersfield Redevelopment Agency for the six month period is $125,000 and is shown on the ROPS 13 -14 B worksheet. Staff is recommending adoption of the Resolution approving the Amended ROPS 13 -14 B and administrative budget. The new law (AB 1484) potentially imposes severe penalties against the City of Bakersfield (up to $10,000 per day) should the Oversight Board not approve the ROPS prior to the October 1, 2013 due date. S:\Admin\Admin Reports \Successor Agency \SA - OB - Admin ROPS 13 -14 B 2 Sept 30 mtg.docx 9/25/20139:08 AM RESOLUTION NO. A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND ADMINSTRATIVE BUDGET FOR THE PERIOD JANUARY 1, 2014 THROUGH JUNE 30, 2014. WHEREAS, the Oversight Board to the Successor Agency to the dissolved Bakersfield Redevelopment Agency has been appointed pursuant to the provisions of Health and Safety Code Section 34179; and WHEREAS, Health and Safety Code Sections 34177(1)(2)(B) and 34180(g) require the approval of the Recognized Obligation Payment Schedule by the Oversight Board; and WHEREAS, a Recognized Obligation Payment Schedule ( "ROPS13 -14B ") and Administrative Budget for the period January 1, 2014 through June 30, 2014, have been prepared by the Successor Agency; and WHEREAS, on September 6, 2013, the Oversight Board to the Successor Agency of the dissolved Bakersfield Redevelopment Agency adopted by Resolution No. OB- 004 -13 approving the ROPS13 -14B and Administrative Budget for the period January 1, 2014 through June 30, 2014; and WHEREAS, the California State Department of Finance has reviewed the ROPS13 -14B and Administrative Budget for the period of January 1, 2014 through June 30, 2014, and has indicated that certain items approved in the prior ROPS (13 -14A) should be added to the ROPS 13 -14B for the period January 1, 2014 through June 30, 2014; and WHEREAS, in order to comply with the California Department of Finance direction, Successor Agency staff has duly revised the ROPS13 -14B referenced above; and WHEREAS, the Amended ROPS13 -14B and Administrative Budget have been presented to the Oversight Board for its consideration at an adjourned special meeting of the Oversight Board held on September 30, 2013; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the Oversight Board as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. The Oversight Board, at its adjourned special meeting of September 30, 2013, reviewed and considered the ROPS13 -14B, including the Successor Agency's Administrative Budget, presented by the Successor Agency. SECTION 3. The Amended ROPS13 -14B and Administrative Budget for the period January 1, 2014 through June 30, 2014, as set forth in Exhibit "A" attached hereto and by this reference incorporated herein, are hereby approved by the Oversight Board. SECTION 4. The Oversight Board authorizes and directs the Successor Agency to the dissolved Bakersfield Redevelopment Agency staff to take all actions necessary under the Dissolution Act to post the Amended ROPS13 -14B on the Successor Agency website, transmit the Amended ROPS13 -14B to the Auditor - Controller of the County of Kern and to the State Controller and the State Department of Finance, and to take any other actions necessary to ensure the validity of the Amended ROPS13 -14B or the validity of any enforceable obligation or other agreement approved by the Oversight Board in the Resolution. PASSED AND ADOPTED by the Oversight Board at the special meeting held on September 30, 2013. ---- - - - - -- 000---- - - - - -- C:\ Users \alawrenc \AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.0utlook \v3QOM85T \OB ApprovAmendedROPSi- 1- 14thru06 -30 -14 Reso (2).docx ATTEST: STATE OF CALIFORNIA COUNTY OF KERN } CITY OF BAKERSFIELD } I, ROBERTA GAFFORD, Acting Secretary to the Oversight Board, hereby certify that the foregoing resolution was duly adopted at the special meeting of the Oversight Board on September 30, 2013. AYES: BOARD MEMEBERS: Bentley, Burke, Burrow, Jay, Quiring, Tandy and Teglia NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: APPROVED J. PHILLIP BENTLEY CHAIR, Oversight Board APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney JOSHUA H. RUDNICK Deputy City Attorney II JHR /vl ROBERTA GAFFORD, Acting Secretary C:\ Users \alawrenc \AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.0utlook \V3QOM85T \OB ApprovAmendedROP51- 1- 14thru06 -30 -14 Reso (2).docx