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Home My WebLink About2/24/14 OVERSIGHT BOARD AGENDA SPECIALSPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA Monday, February 24, 2014 9:00 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 December 2, 2013 special meeting b. A Resolution of the Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency Ratifying the Disposition of Specified Property Previously Conveyed to the City of Bakersfield for Use for Governmental Purposes C. Recognized Obligation Payment Schedule (ROPS 14 -15A) and administrative budget for the period from July 1, 2014 through December 31, 2014. 4. BOARD COMMENTS 5. ADJOURNMENT OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: February 24, 2014 AGENDA ITEM: 3.a TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Minutes of the December 2, 2013 special meeting RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: S: \OVERSIGHT BOARD OF SUCCESSOR AGENCY\Agenda Reports\Agenda Report MINUTES.docx 2/18/2014 2:53 PM 1. OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY MINUTES MEETING OF DECEMBER 2, 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 Burrow, Jay, Quiring, Tandy, Teglia Absent: Board Member Burke 2. PUBLIC STATEMENTS None. 3. NEW BUSINESS a. Minutes of the September 30, 2013 special meeting. Motion by Board Member Jay, seconded by APPROVED Board Member Quiring for approval of the AB BURKE minutes. b. A Resolution of the Oversight Board to the RES OB 005 -13 Successor Agency of the Dissolved Bakersfield Redevelopment Agency ratifying previous transfer of a specified housing asset to the City of Bakersfield. Deputy City Attorney Rudnick made staff comments and responded to Board Member questions. Community Development Director Mclsaac made additional staff comments. Motion by Board Member Jay, seconded by APPROVED Board Member Quiring, to adopt a Resolution AB BURKE ratifying previous transfer of a specified housing asset to the City of Bakersfield. Bakersfield, California, December 2, 2013 — Page 2 4. BOARD COMMENTS ACTION TAKEN None. 5. ADJOURNMENT Chair Person Bentley adjourned the meeting at 10:08 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: February 24, 2014 1 AGENDA ITEM: 3.b. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: A Resolution of the Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency Ratifying the Disposition of Specified Property Previously Conveyed to the City of Bakersfield for Use for Governmental Purposes RECOMMENDATION: Staff recommends adoption of the Resolution. BACKGROUND: In June, 2011, the California Legislature enacted AB 1 x 26 to eliminate redevelopment agencies, which legislation was subsequently amended in June 2012 by AB 1484 (together, the "Dissolution Legislation "). On February 1, 2012, pursuant to the Dissolution Legislation, redevelopment agencies in the State were dissolved. Among other provisions, the Dissolution Legislation provides that the Oversight Board may direct the Successor Agency to transfer ownership of those assets that were constructed and used for governmental purpose, such as roads, school buildings, parks, parking lots, police and fire stations, libraries and local administrative buildings to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of an asset. In a recent audit /review by the State Controller's Office ( "SCO "), it was determined that certain asset transfers that the former RDA made to the City of Bakersfield on March 9, 2011 by Resolution No. RA006 -11 /029 -11 and Agreement No. RA11- 006/11 -027 were to be reversed and the assets are to be returned to the Successor Agency. However, the SCO indicated that under the Dissolution Law, the Oversight Board could approve a resolution to authorize the transfer of certain assets retroactively to the City of Bakersfield as a governmental purpose property pursuant to Health and Safety Code Section (HSC) 34181(a). The following is a description of the government purpose property at issue that the Successor Agency staff proposes to transfer to the City of Bakersfield: C:\ Users\ alawrenc\AppData \Local\Microsoft \Windows \Temporary Internet Files\ Content. Outlook \UOW8QKOX \OversightBoard - TransferGovtPurpProp Admin.doa 2/11/2014 3:15 PM AGENDA REPORT Page 2 1. 700 California Avenue /1231 R Street (APN 006 - 510 -06, 07, and 09) - this property consists of • public park and parking lot open to the public. The property fits within the definition of • governmental use property because it was constructed and used as a park and parking lot for use by the public. The public facilities are actively used by the public that frequent the South Mill Creek redevelopment project area. It is proposed that the property remain with the City of Bakersfield, and since no agreement provided for compensation to the former RDA upon the transfer of such property, no compensation is required in connection with the transfer of this governmental property. JHR /vl Attachments: 1. Public Notice 2. Resolution C:\ Users \alawrenc\AppData \LocalMicrosoft \Windows \Temporary Internet Files\ Content. Outlook \UOWBQKOX\OversightBoard - TransferGovtPurpProp Admin.dom 2/11/20143:15 PM OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: February 24, 2014 1 AGENDA ITEM: 3.c. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Recognized Obligation Payment Schedule (ROPS 14 -15 A) and administrative budget for the period from July 1, 2014 through December 31, 2014. RECOMMENDATION: Staff recommends adoption of a Resolution of the Oversight Board to the Successor Agency of the dissolved Bakersfield Redevelopment Agency approving the Recognized Obligation Payment Schedule (ROPS 14 -15 A) and administrative budget for the period July 1, 2014 through December 31, 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 frorn 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. This law was further amended by AB 1484 to require the schedule to be approved by the Oversight Board and submitted to the DOF three months in advance of the cash distribution dates to allow them sufficient time to review and approve this schedule. Filing due dates are Oct. 1 and March 1 of each fiscal year, with cash distribution dates each January and June. 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 attached schedule includes a listing of the obligations for the next six month period as well as a reconciliation page identifying the variances between the estimated payments for the ROPS 13 -14 A period (July 1, 2013 to December 31, 2013) and actual expenses paid during that same period. The ROPS schedule has been updated to include the recent court actions which approved the reinstatement of previously denied ROPS line item #'s 24, 35 and '36 (the Courtyard Apartments project and the Park 20th Apartments project). C: \Users\alawrenc\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \UOW80KOX \SA - OB - Admin ROPS 14 -15 A Feb 24 mtg.docx 2/14/2014 10:01 AM AGENDA REPORT Page 2 The court ruled on the side of the DOF regarding the Arena debt and we have therefore adjusted the former RDA contributions back to the historic $600,000 payment for each six month period. The City will continue to pay the balance of the annual debt on the arena in the form of lease payments to the Successor Agency. Additionally, the three Inter - agency loans with the City have been reinstated by the DOF and we will begin scheduling repayment of that debt in this period and future periods based on cash availability and the guidelines and restrictions detailed in the state law. 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 14 -15 A worksheet. Staff is recommending adoption of the Resolution approving the ROPS 14 -15 A and administrative budget. The state 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 March 1 or October 1 due date. C: \Users\alawrenc\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \UOW8QKOX \SA - OB - Admin ROPS 14 -15 A Feb 24 mtg.docx 2/14/201410:01 AM