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Home My WebLink About02/18/15 OB AGENDA SPECIALSPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA Wednesday, February 18, 2015 10:00 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 September 18, 2014 special meeting. b. Recognized Obligation Payment Schedule (BOPS 15 -16 A) and administrative budget for the period from July 1, 2015 through December 31, 2015. C. Correspondence received from the County of Kern regarding review of pass- through payments to schools. 4. BOARD COMMENTS 5. ADJOURNMENT OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: February 18, 2015 AGENDA ITEM: 3.a TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Minutes of the September 18, 2014 special meeting RECOMMENDATION: Staff recommends approval of the minutes, BACKGROUND: S: \OVERSIGHT BOARD OF SUCCESSOR AGENCY\Agenda Reports\Agenda Report MINUTES.docx 2/11/2015 11:38 AM OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY MINUTES MEETING OF SEPTEMBER 18, 2014 Conference Room A, City Hall North, 1600 Truxtun Avenue Special Meeting 9:00 a.m. SPECIAL MEETING -9:00 a.m. ACTION TAKEN 1. ROLL CALL Present: Chairperson Bentley, Board Members Jay, Quiring, Tandy, Teglia Absent: Board Members Burke, Burrow 2. PUBLIC STATEMENTS None. 3. NEW BUSINESS a. Minutes of the February 24, 2014 special meeting. Motion by Board Member Quiring, seconded by Board Member Jay, for approval of the minutes. b. The Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency Receive and File the Staff Report and Correspondence from PEI. Motion by Board Member Jay, seconded by Board Member Quiring, to receive and file the Staff Report and Correspondence from PEI. C. The Oversight Board to the Successor Agency of the Dissolved Bakersfield Redevelopment Agency Receive and File the Staff Report on Draft Asset Transfer Review Findings of State Controller's Office (SCO). Deputy City Attorney Rudnick made staff comments on findings from the State Controller's Office and explained the next steps for the Board. APPROVED AB BURKE, BURROW APPROVED AB BURKE, BURROW Bakersfield, California, September 18, 2014 - Page 2 3. NEW BUSINESS continued Item 3.c. continued Board Member Tandy made additional comments. Motion by Board Member Teglia, seconded by Board Member Jay, to receive and file the Staff Report on Draft Asset Transfer Review Findings of State Controller's Office. d. Recognized Obligation Payment Schedule (ROPS 14 -15B) and administrative budget for the period from January 1, 2015 through June 30, 2015. Finance Director Smith made staff comments and recommended the adoption of the Recognized Obligation Payment Schedule as presented. Motion by Board Member Jay, seconded by Board Member Quiring, to adopt a Resolution approving the Recognized Obligation Payment Schedule for the period from January 1, 2015 through June 30, 2015. 4. BOARD COMMENTS None. 5. ADJOURNMENT Chair Person Bentley adjourned the meeting at 9:22 a.m. CHAIR of the Oversight Board to the Successor Agency ATTEST: Acting SECRETARY ACTION TAKEN APPROVED AB BURKE, BURROW RES OB003 -14 APPROVED AB BURKE, BURROW OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: February 18, 2015 1 AGENDA ITEM: 3.b. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Recognized Obligation Payment Schedule (ROPS 15 -16 A) and administrative budget for the period from July 1, 2015 through December 31, 2015. 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 15 -16 A) and administrative budget for the period July 1, 2015 through December 31, 2015. 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. 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 14 -15 A period (July 1, 2014 to December 31, 2014) and actual expenses paid during that some period. 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 15 -16 A worksheet. S:\Accounting\Admin\Admin Reports \Successor Agency \SA - OB - Admin ROPS 15 -16 A February 18 2015 meeting.docx 2/6/2015 12:49 PM AGENDA REPORT Page 2 Staff is recommending adoption of the Resolution approving the ROPS 15 -16 A and administrative budget. A line item ( #44) has been added in the amount of $104,796 due to the deficit variance between the approved ROPS amount from the prior ROPS period (14 -15 B) of $4,654,017 and the actual amount of cash disbursed by the County of $4,549,221. The instructions provided for this type of event dictate the cash shortfall be added to the next ROPS schedule. 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 the respective March 1 or October 1 due dates. S:\Accounting\Admin\Admin Reports \Successor Agency\SA - OB - Admin ROPS 15 -16 A February 18 2015 meeting.dom 2/6/201512:49 PM OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: February 18, 2015 1 AGENDA ITEM: 3. c . TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Correspondence received from the County of Kern regarding review of pass - through payments to schools. RECOMMENDATION: Staff recommends the attached letter from the County of Kern be received and filed. BACKGROUND: At the September 18, 2014 Oversight Board meeting staff presented correspondence received from the Kern County Superintendent of Schools' ( KCSOS) legal counsel regarding the Public Economics Inc., (PEI) claim for prior years AB 1290 pass through payments made to the former Bakersfield Redevelopment Agency. A copy of that administrative report and associated letters are attached for your information. On December 23, 2014 the County of Kern corresponded with the City of Bakersfield as Successor Agency to the former Bakersfield Redevelopment Agency, advising us that, "while (the county) agrees with some of the findings from the PEI review, it does not agree entirely and we continue to address the discrepancies ". The County anticipates they will complete their review by the end of May 2015 and then share their results with us. A copy of the full letter from the County is attached for your review. The City, acting as Successor Agency, intends to continue discussions with the KCSOS and staff will recommend that we enter into a settlement agreement with the KCSOS for prior year pass through payments received in error. We want to wait until the County verifies the amount of over /under payments as the County staff were most directly involved in the original calculations of those payments. When those amounts are known and a settlement agreement is reached, that item would then be added to a future Recognized Obligation Payment Schedule (ROPS) for funding consideration from future tax revenues available for funding authorized ROPS line items. S:\Accounting\Admin\Hdmin Reports \Successor Agency \SA - OB - Admin county correspondence February 18 2015 meeting.dom 2/6/2015 2:28 PM