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.
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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.
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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.
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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
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