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2016 01 20 OBTALI,/ � �F'QuiHfw OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY AGENDA La Quinta City Council Chambers 78-495 Calle Tampico, La Quinta, CA Regular Meeting on Wednesday, January 20, 2016 at 2:00 p.m. CALL TO ORDER Roll Call: Board Members: Henderson, Howell, Marshall, Maysels, Novak, Vice -Chairperson Nelson, Chairperson Osborne PLEDGE OF ALLEGIANCE PUBLIC COMMENT This is the time set aside for public comment on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. When addressing the Oversight Board, please state your name and address. CONFIRMATION OF AGENDA PRESENTATIONS - NONE WRITTEN COMMUNICATIONS - NONE CONSENT ITEMS 1. MINUTES OF SEPTEMBER 16, 2015 BUSINESS ITEMS 1. ADOPT RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017. [Resolution No. OB 2016-001] 2. ADOPT RESOLUTION APPROVING SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR JULY 1, 2016 THROUGH JUNE 30, 2017 [Resolution No. OB 2016-002] 3. ADOPT A RESOLUTION REDUCING THE FREQUENCY OF OVERSIGHT BOARD MEETINGS [Resolution No. OB 2016-003] 1 STUDY SESSION - NONE REPORTS AND INFORMATIONAL ITEMS - NONE CHAIR AND BOARD MEMBERS' ITEMS EXECUTIVE DIRECTOR ITEMS 1. VERBAL UPDATE ON SUCCESSOR AGENCY MATTERS ADJOURNMENT The next regular meeting of the Oversight Board will be held on February 17, 2016 commencing at 2:00 p.m. at the La Quinta City Hall Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Teresa Thompson, acting as Oversight Board Secretary for Pam Nieto, do hereby declare that the foregoing Agenda for the Oversight Board for Successor Agency to La Quinta Redevelopment Agency meeting of January 20, 2016 was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111, and the La Quinta Cove Post Office at 51- 321 Avenida Bermudas, on January 15, 2016. Dated: January 15, 2016 TERESA THOMPSON for Pam Nieto Oversight Board Secretary Public Notices The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at (760) 777-7103, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Oversight Board, arrangements should be made in advance by contacting the City Clerk's office at (760) 777- 7103. A one (1) week notice is required. If background material is to be presented to the Oversight Board during a meeting, please be advised the ten (10) copies of all documents, exhibits, etc., must be supplied to the Oversight Board Secretary for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Oversight Board regarding any item on this agenda will be made available for public inspection at the City Clerk's counter at City Hall located at 78-495 Calle Tampico, La Quinta, CA 92253, during normal business hours. 2 2 OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY MINUTES WEDNESDAY, SEPTEMBER 16, 2015 CONSENT 1 A meeting of the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency was called to order at 2:01 p.m. by Chair Osborne. PRESENT: Board Members Henderson, Howell, Marshall, Novak, Chairperson Osborne ABSENT: Board Members Maysels, Nelson STAFF PRESENT: William Ihrke, City Attorney, Frank J. Spevacek, Executive Director of the Successor Agency PUBLIC COMMENT - None CONFIRMATION OF AGENDA - Confirmed PRESENTATIONS - None APPROVAL OF MINUTES Motion - A motion was made by Board Members Henderson/Howell to approve the Oversight Board Minutes of February 18, 201 5, as submitted. Motion passed. BUSINESS SESSION 1. ADOPT RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 1 THROUGH JUNE 30, 2016 (Resolution No. OB 2015-003 ) RESOLUTION NO. OB 2015 - 003 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY ADOPTING RECOGNIZED OBLIGATION PAYMENT SCHEDULE 15-16B FOR THE PERIOD OF JANUARY 1, 2016 THROUGH JUNE 30, 2016 3 MOTION - A motion was made by Board Members Henderson/Marshall to adopt Resolution No. OB 2015-003. Motion passed 5 ayes, 0 noes, 2 absent. 2. ADOPT RESOLUTION APPROVING SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR JANUARY 1 THROUGH JUNE 30, 2016 (Resolution No. OB 2015-004 ) RESOLUTION NO. OB. 2015-004 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JANUARY 1, 2016 THROUGH JUNE 30, 2016. MOTION - A motion was made by Board Members Novak/Howell to adopt Resolution No. OB 201 5-004. Motion passed 5 ayes, 0 noes, 2 absent. REPORTS AND INFORMATION ITEMS - None EXECUTIVE DIRECTOR ITEMS City Attorney William Ihrke gave a report on Senate Bill 107 and the effects it will have on the City of La Quinta if signed. ADJOURNMENT There being no further business, it was moved by Board Members Henderson/Howell to adjourn the meeting at 2:34 p.m. Motion passed unanimously. Respectfully submitted, Pam Nieto Oversight Board Secretary OVERSIGHT BOARD MEETING 2 September 16, 2015 4 BUSINESS ITEM NO. 1 City of La Quinta OVERSIGHT BOARD MEETING: January 20, 2016 STAFF REPORT AGENDA TITLE;, ADOPT RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017 RECOMMENDATION Adopt a Resolution approving a Recognized Obligation Payment Schedule for the period of July 1, 2016 through June 30, 2017. EXECUTIVE SUMMARY A Recognized Obligation Payment Schedule (ROPS) identifies the obligations of the former Redevelopment Agency (RDA) that must be paid. The Successor Agency to the former RDA must submit a ROPS to the Department of Finance (DOF), State Controller's Office, the County Administrative Officer, and the County Auditor -Controller annually. The ROPS (Exhibit A to the Resolution) identifies $29,891,733 of Enforceable Obligations that must be funded during the Fiscal Year 2016/2017. FISCAL IMPACT The Successor Agency requests DOF authorization to expend $8,997,830 from bond proceeds, and an allocation of $20,622,721 of property tax revenue (RPTTF). The $20,622,721 of RPTTF funding would be allocated as follows: $250,000 for administrative expenses, $2,283,601 to repay the City General Fund loan and $18,089,120 is to pay bond interest and principal payments. BACKGROUND/ANALYSIS SB 107 changed the ROPS reporting process from two semi-annual submittals to one annual submittal due in February each year. The ROPS identifies the obligations of the former RDA that the Successor Agency must fund during Fiscal Year 2016/2017. These obligations include tax allocation bond debt service payments, third party contracts, administrative costs and repayment of the City General Fund loan. The ROPS must be submitted to the above-mentioned entities by February 1, 2016. If the ROPS is submitted late, the City will be subject to a civil fine of $10,000 per day. The DOF then has until April 15, 2016 to make its final determination regarding the enforceable obligations, the dollar amounts, and funding sources. 5 ALTERNATIVES As this is a requirement of the DOF, staff does not recommend an alternative. Prepared by: Approved by: Rita Conrad, Finance Director Frank Spevacek, City Manager 6 RESOLUTION NO. OB 2016 - 001 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY ADOPTING RECOGNIZED OBLIGATION PAYMENT SCHEDULE 16-17 FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017. WHEREAS, the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency ("Oversight Board") has been established to direct the Successor Agency to the La Quinta Redevelopment Agency ("Successor Agency") to take certain actions to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in accordance with California Health and Safety Code; and WHEREAS, the former La Quinta Redevelopment Agency ("Agency") was engaged in activities to execute and implement the Project Area No. 1 Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, as part of the 2011/2012 State budget bill, the California Legislature enacted and the Governor signed, Assembly Bill 26 ("ABx1 26") requiring that each redevelopment agency be dissolved and Assembly Bill 27 ("ABx1 27") that would have allowed redevelopment agencies to remain in existence if certain remittance payments were made; and WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1 27 was filed in the California Supreme Court; and WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck down ABx1 27 as unconstitutional; and WHEREAS, on January 2, 2012, the City Council adopted City Council Resolution No. 2012-002, affirmatively electing to be the "successor agency" to the Agency; and WHEREAS, on June 27, 2012, the California Legislature enacted, and the Governor signed, Assembly Bill 1484 ("AB 1484"), and on September 22, 2015, Senate Bill 107 ("SB 107"), which, among other things, made certain revisions to certain of the statutes added by ABx1 26; and all other bills that have amended ABx1 26, are collectively referred to as the "redevelopment dissolution law" (Part 1.85 of Division 24 of the Health and Safety Code); and WHEREAS, Health and Safety Code Section 34177 requires successor agencies to prepare and adopt, on an annual basis, a "Recognized Obligation Payment 7 Resolution No. OB 2016-001 Adoption of Recognized Obligation Payment Schedule Adopted: January 20`h, 2016 Page 2 of 3 Schedule" ("ROPS") that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34171; and WHEREAS, the Successor Agency has prepared and approved ROPS 16-17 for the period of July 1, 2016 through June 30, 2017; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency, as follows: SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. Approval of ROPS 16-17. In order to enable the Successor Agency to strictly comply with ABx1 26, and based on the Recitals set forth above, the Oversight Board hereby approves ROPS 16-17 attached hereto as Exhibit A as the Recognized Obligation Payment Schedule for the period of July 1, 2016 through June 30, 2017. Pursuant to Health & Safety Section 34173(e), the Successor Agency's liability, including, but not limited to, its liability for the obligations on the attached schedule, is limited to the total sum of property tax revenues it receives pursuant to Part 1.85 of AB x1 26. SECTION 3. Implementation. The Oversight Board hereby authorizes and directs the Executive Director to take any action and execute any documents necessary to implement this Resolution, and further authorizes the Executive Director to forward ROPS 16-17 to the Department of Finance, State Controller, County Administrative Officer, and County Auditor -Controller. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 5. The Oversight Board Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board to the Successor Agency to the La Quinta Redevelopment Agency held this 20th of January 2016, by the following vote: 8 Resolution No. OB 2016-001 Adoption of Recognized Obligation Payment Schedule Adopted: January 20`h, 2016 Page 3 of 3 AYES: NOES: ABSENT: ABSTAIN: ATTEST: TERESA THOMPSON for Pam Nieto Secretary to the Oversight Board PETER NELSON, Vice -Chairperson Oversight Board of the Successor Agency to the La Quinta Redevelopment Agency 9 10 11 1 2 1 3 14    15 16 RESOLUTION NO. OB 2016 - 002 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE LA QUINTA REDEVELOPMENT AGENCY APPROVING THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017. WHEREAS, the Oversight Board of the Successor Agency to La Quinta Redevelopment Agency (“Oversight Board” or “Successor Agency,” as applicable) has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former La Quinta Redevelopment Agency (“Agency”) in accordance with the California Health and Safety Code; and WHEREAS, the Agency was engaged in activities to execute and implement the Project Area No. 1 Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively, the “Redevelopment Plans”) pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) (“CRL”); and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted and the Governor signed, ABx1 26 requiring that each redevelopment agency be dissolved; and WHEREAS, an action challenging the constitutionality of ABx1 26 and companion bill ABx1 27 was filed in the California Supreme Court by the California Redevelopment Association, the League of California Cities, and two individual cities; and WHEREAS, on December 29, 2011, the Court upheld ABx1 26; and WHEREAS, Health and Safety Code Section 34177(j) requires each Successor Agency to prepare a proposed administrative budget annually setting forth the Successor Agency’s estimated administrative costs of carrying out the wind-down activities of the former redevelopment agency, proposing sources of payment for such estimated administrative costs, and proposing for arrangements for administrative and operations services provided by a city, county and/or other entity; and WHEREAS, the Successor Agency has prepared a proposed administrative budget for the period July 1, 2016 – June 30, 2017 (the “Administrative Budget”) attached hereto as Exhibit A; and WHEREAS, on January 19, 2016 the Successor Agency reviewed and approved the Administrative Budget; and; 17 Resolution No. OB 2016- Adoption of SA Administrative Budget Adopted: January 20th, 2016 Page 2 WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of Successor Agency to La Quinta Redevelopment Agency, does hereby resolve as follows: SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. Approval of Administrative Budget. The Oversight Board hereby approves the Administrative Budget, which is attached hereto as Exhibit A and is on file with the Secretary of the Oversight Board and the Secretary of the Successor Agency. SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. The Oversight Board Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board of the Successor Agency to La Quinta Redevelopment Agency held this 20th day of January, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: _______________________________________ Peter Nelson, Vice-Chairperson Oversight Board of the Successor Agency to La Quinta Redevelopment Agency ATTEST: _________________________________ TERESA THOMPSON for Pam Nieto Secretary to the Oversight Board 18 SUCCESSOR AGENCY/OVERSIGHT BOARD JULY 2016 TO JUNE 2017 ADMINISTRATIVE BUDGET PERSONNEL $99,700 City Manager $23,700 Accounting Manager $21,100 Finance Director $18,800 Management Assistant $7,400 Deputy City Clerk $3,400 City Clerk $6,600 Financial Services Specialist $18,700 SUPPLIES & SERVICES $2,000 CONTRACT SERVICES $120,300 This account provides for legal, consulting, and audit services plus a portion of League of California Cities and California Redevelopment Agency dues related to technical assistance and training. Audits as required by ABx1 26 $10,000 League of California Cities Dues & Seminars/Webinars related to ABx1 26 $1,900 Legal Services for Successor Agency $45,200 Consulting Services for Successor Agency $63,200 SUPPLIES AND PUBLICATIONS $4,000 This account provides for various office supplies and publications to be used by SA and OB staff and board members Successor Agency Supplies & Publications $2,500 Oversight Board Supplies & Publications $1,500 PRINTING/MAILING/ADVERTISING $1,000 This account provides for required mailings, agenda printing, and legal advertising INFORMATION TECHNOLOGY $6,000 This account provides for annual replacement charges for information technology items such as computers, printers, and computer related items attributable to SA/OB; and support/hosting for SA/OB web pages, which are required by ABx1 26 $3,500 Computer Document Storage related to Successor Agency $2,000 On-Line Muni Code related to Successor Agency $500 OFFICE & EQUIPMENT $17,000 This account provides for office space rental and equipment usage in City Hall Rent $15,000 Equipment $2,000 TOTAL ADMINISTRATIVE BUDGET $250,000 EXHIBIT A 19 20 City of La Quinta OVERSIGHT BOARD MEETING: JANUARY 20, 2016 STAFF REPORT AGENDA TITLE: ADOPT A RESOLUTION REDUCING THE FREQUENCY OF MEETINGS RECOMMENDATION Adopt Resolution No. 2016-003 reducing the frequency of Oversight Board meetings. EXECUTIVE SUMMARY  At its initial meeting in March 2012 the Board established a meeting schedule of two meetings per month (to follow Successor Agency meetings) to be held at 2:00 p.m. at City Hall.  During the past year and going forward, the Successor Agency (SA) business has decreased resulting in less Oversight Board (OB) meetings; this is because the La Quinta Redevelopment Agency (RDA) liquidation activities are nearly complete.  In 2015, 24 of the OB’s regular 26 meetings per year were cancelled. FISCAL IMPACT – None BACKGROUND/ANALYSIS In the early years of the OB, two meetings per month were necessary to meet statutory time deadlines, wind down a multitude of projects underway and determine the disposition of a number of properties held by the dissolved RDA. After almost four years, much of that work is done and the need for frequent meetings no longer exists. The OB oversees the actions of the SA. Almost two years ago the SA reduced its bi– monthly meeting schedule to meet as-needed when action is required on matters within its jurisdiction. ALTERNATIVES Retain the twice per month meeting schedule set in 2012, or set an alternative meeting schedule. Prepared by: Monika Radeva, Executive Assistant Approved by: Frank J. Spevacek, Oversight Board Executive Director BUSINESS ITEM NO. 3 21 22 RESOLUTION NO. OB 2016-003 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT AGENCY REDUCING THE FREQUENCY OF OVERSIGHT BOARD MEETINGS WHEREAS, the Oversight Board of Successor Agency to La Quinta Redevelopment Agency (“Oversight Board” as applicable) adopted Resolution 2012- 001 on March 7, 2012 which set the date, time and location of its meetings. Resolution 2012-001 set meetings at twice per month; and WHEREAS, the Oversight Board and Successor Agency it oversees has wound down the majority of the former La Quinta Redevelopment Agency matters; and WHEREAS, the remaining business to be heard by the Oversight Board can be efficiently conducted in one to three meetings per year as matters arise; and NOW THEREFORE, BE IT RESOLVED by the Oversight Board, as follows: SECTION 1. The Oversight Board shall meet as needed beginning February 2016 and continuing until such time as the body is disbanded. All meetings shall be open to the public. Meetings may be adjourned by the presiding officer or by the Secretary if a quorum is not present. SECTION 2. The location of the Oversight Board meetings shall continue to be at La Quinta City Hall, 78-495 Calle Tampico, La Quinta, California. SECTION 3. The time of the Oversight Board meetings shall continue to be 2:00 p.m. SECTION 4. Special, as-needed meetings will be called by the Chairperson or by four (4) board members, and notice thereof shall be provided by the Oversight Board Secretary in accordance with the Brown Act. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Oversight Board of Successor Agency to La Quinta Redevelopment Agency, held on this the 20th day of January 2016 by the following vote, to wit: AYES: Board Members NOES: ABSENT: ABSTAIN: _______________________________ PETER NELSON, Vice-Chairperson Oversight Board of Successor Agency to La Quinta Redevelopment Agency 23 Resolution No. OB 2016-003 Reducing Meeting Frequency Adopted: January ___, 2016 ATTEST: ________________________________ TERESA THOMPSON, for Pam Nieto Oversight Board Secretary 24