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Home My WebLink About1/23/17 OB AGENDA SPECIALSPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA Monday, January 23, 2017 1:00 P.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 January 26, 2016 special meeting. b. Resolution approving the Recognized Obligation Payment Schedule and administrative budget (ROPS 17 -18) for the period July 1, 2017 through June 30, 2018. C. Resolution approving the Last and Final Recognized Obligation Payment Schedule. 4. BOARD COMMENTS 5. ADJOURNMENT OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: January 23, 2017 AGENDA ITEM: 3.a TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Minutes of the January 26, 2016 special meeting Staff recommends approval of the minutes. BACKGROUND: S:WERSIGHT BOARD OF SUCCESSOR AGENCY Agenda RepoftWgenda Report MINUTES docx 1/19/2017 9 :53 AM OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY MINUTES MEETING OF JANUARY 26, 2016 Conference Room A, City Hall North, 1600 Truxfun Avenue Special Meeting 10:00 a.m. SPECIAL MEETING -10:00 a.m. ACTION TAKEN 1. ROLL CALL Present: Chairperson Bentley, Board Members Quiring, Huot, Teglia Absent: Board Members Burke, Burrow, Jay 2. PUBLIC STATEMENTS None. 3. NEW BUSINESS a. Minutes of the September 10, 2015 special meeting. Motion by Board Member Teglia, seconded by APPROVED Board Member Quiring, for approval of the All BURKE, BURROW, JAY minutes. b. Recognized Obligation Payment Schedule and RES 08001 -16 administrative budget )ROPS 16 -17) for the period July 1, 2016 through June 30, 2017. Finance Director Smith made staff comments. Motion by Board Member Quiring, seconded APPROVED by Board Member Tegla, to adopt the AS BURKE, BURROW, Resolution approving the Recognized JAY Obligation Payment Schedule for the period from July 1, 2016 through June 30, 2017. 4. BOARD COMMENTS Deputy City Clerk Obert announced Gary Bray will serve as Board Member for the Oversight Board, on behalf of the Kern County Superintendent of Schools, in place of Board Member Burrow. Deputy City Attorney Rudnick advised Assistant City Manager Huot substituted Board Member Tandy during the meeting. OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: January 23, 2017 AGENDA ITEM: 3.b. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Recognized Obligation Payment Schedule (ROPS FY 17 -18) and administrative budget for the period from July 1, 2017 through June 30, 2018. 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 FY 17 -18) and administrative budget for the period July 1, 2017 through June 30, 2018. BACKGROUND: State law AB 26 requires the Oversight Board to review and approve a Recognized Obligation Payment Schedule (ROPS) looking forward for each fiscal 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 attached schedule includes a listing of the obligations for the next twelve month fiscal year period (July 1, 2017 to June 30, 2018). 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 next fiscal year is $40,000 and is shown on the ROPS worksheet. Staff is recommending adoption of the Resolution approving the ROPS 17 -18 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 the February 1 due date. 8:W uMin9WhminVWmin ReixwlA8uccessor Agency'SA - OB - Admin BOPS FY 1718 Jan 232017 meeting do 1/192017 8 :43 AM OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY AGENDA REPORT MEETING DATE: January 23, 2017 AGENDA ITEM: 3.c. TO: Members of the Oversight Board FROM: Successor Agency Staff SUBJECT: Last and Final Recognized Obligation Payment Schedule and administrative budget for the period from July 1, 2017 through June 30, 2038. RECOMMENDATION: Staff recommends adoption of a Resolution of the Oversight Board to the Successor Agency of the dissolved Bakersfield Redevelopment Agency approving the Last and Final Recognized Obligation Payment Schedule and administrative budget for the period July 1, 2017 through June 30, 2038. BACKGROUND: State law AB 26 requires the Oversight Board to review and approve a Recognized Obligation Payment Schedule (ROPS) looking forward for each fiscal 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. Senate Bill 107 (approved September 2015) allows Successor Agencies to submit a "Last and Final ROPS" if they have met certain conditions. The three conditions to be met are: 1) the remaining debt is limited to debt service, loan agreements, contracts and associated administrative costs; 2) all remaining obligations have been previously listed on a ROPS and have previously been approved by the DOF; and 3) the Successor Agency is not a party to pending. litigation. Bakersfield has met all three conditions and wishes to file a "Last and Final ROPS ". If approved by the DOF, then Bakersfield will no longer need to file annual ROPS and no further Oversight Board meetings would be necessary unless there was a need to amend the Last and Final ROPS document. The attached schedule includes a listing of the obligations through the completion of the final debt service payment, which takes place in Fiscal Year 2037 -38. S:A=unbngWdminWdmin Reports\Successor Agency \SA - OB - Admin ROPS last aW final Jan 23 2017 meetingdooz 1/1912017 9:36 A AGENDA REPORT Page 2 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 Last and Final ROPS periods is estimated at $40,000 to $50,000 per fiscal year and is shown on the ROPS worksheet. There is additional arbitrage rebate work that is necessary every fifth year; thus the variation in annual administrative costs from year to year. Staff is recommending adoption of the Resolution approving the Last and Final ROPS and administrative budget. The state law allows the DOF up to 100 days to review and approve a Last and Final ROPS. This extended time period requires Bakersfield to file the FY 17 -18 ROPS separately so that there is no gap in debt service coverage that may be caused by delays in processing and approving the Last and Final ROPS document. The Last and Final ROPS includes the FY 2017 -18 costs. This action is in accordance with the DOF guidelines to include all costs that have not been previously approved, thus creating a small overlap between the two ROPS. S \A=untingXAdrnmVAmin RepmtslSuccessor AgencytSA - OB - AOmin ROPS last and final Jan 23 2017 meeting.do= 11191201]9:35 AM