OB - Agenda - 04-25-12Public Comment from the Audience
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Rosemead
Oversight
Board
for the
Successor Agency to the
Rosemead Community
Development Commission
MEETING AGENDA
April 25, 2012
City Hall Council Chamber
8838 E. Valley Boulevard
Rosemead, CA 91770
www.cityofrosemead.org
Jeff Allred, Board Member
Raul Alvarez, Board Member
Marty Jones, Board Member
Nicole Lash, Board Member
Irene Redondo - Churchward, Board Member
Pat Wallach, Board Member
ROSEMEAD OVERSIGHT BOARD MEETING AGENDA
April 25, 2012
Oversight Board
Meeting Agenda
• CALL TO ORDER— 6:00 PM
• PLEDGE OF ALLEGIANCE
• ROLL CALL:
o Board Members —Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach
1. BOARD MEMBERS INTRODUCTIONS
2. PUBLIC COMMENTS FROM THE AUDIENCE
The Oversight Board will receive public comments on matters not listed on the agenda.
3. MATTERS FROM STAFF OF THE ROSEMEAD SUCCESSOR AGENCY
A. Selection of a Chairperson and Vice-Chairperson
California Health and Safety Code section 34179 requires the Oversight Board to designate
a Chairperson. In keeping with standard procedures, it would also be prudent to select a
Vice - Chairperson who is authorized to act in the absence of the Chairperson.
Furthermore, the Oversight Committee is required to appoint a Successor Agency staff
person as the Public Official point of contact for the Department of Finance. The Successor
Agency wishes to designate the Assistant City Manager as the point of contact for the
Department of Finance.
Recommendation: That the Oversight Board select a Chairperson and Vice- Chairperson
and approve Resolution 2012 -0001, entitled:
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION DESIGNATING A
CHAIRPERSON, VICE - CHAIRPERSON AND PUBLIC OFFICAL
FOR DEPARTMENT OF FINANCE CONTACT PURPOSES AS
REQURIED BY HEALTH AND SAFETY CODE SECTION 34179
Page 2 of 6
ROSEMEAD OVERSIGHT BOARD MEETING AGENDA
April 25, 2012
B. Rosemead Redevelopment Overview and Administrative Cost Allowance
The Rosemead Redevelopment Commission established its first project area on June 27,
1972 and its second project area on June 27, 2000. On March 10, 2009 the Commission
merged these two project areas into one allowing for greater flexibility in addressing the
remaining blighted conditions in the community. Throughout the years, the Commission has
remained on a consistent course of improving blighted areas through infrastructure
improvement projects and partnering with the County and school districts without entering
into financial arrangements to subsidize commercial developers or businesses. The City and
the former Commission are very proud of the fact that they never used redevelopment
funding to subsidize private business entities.
Along with completing numerous infrastructure projects throughout the years, the
Commission was also able to develop strong programs to encourage private investment in
rehabilitating and renovating commercial and retail business areas. This was done through
the Code Enforcement and Planning divisions with staff specifically assigned to certain
commercial corridors and target areas. Staff members were able to develop strong working
relationships with businesses to ultimately achieve blight removal and revitalization through
the installation of new signage, the painting of exteriors and the removal of barbed wire and
bars on windows. The Commission was also able to assist in beautifying the area through
the repair of sidewalks, the planting of street trees and the construction or renovation of
medians and parkways.
With the elimination of Redevelopment, the City as the Successor Agency has hopes to
continue many of these programs as funding permits. California Health and Safety Code
section 34171(b) provides that each Successor Agency will be provided with a minimum of
$250,000 in each fiscal year for administrative and ongoing dperational costs. Due to
Rosemead's size and tax increment base, it is projected that Rosemead will only receive this
minimum amount. The Oversight Board has the responsibility to review and approve the
annual administrative cost allowance budget for the Successor Agency.
Recommendation: That the Oversight Board approve Resolution 2012 -0004, entitled
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE
FISCAL YEARS 201112012 AND 201212013 PURSUANT TO
THE HEALTH AND SAFETY CODE SECTION 341770) AND (k)
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ROSEMEAD OVERSIGHT BOARD MEETING AGENDA
Apol 25, 2012
C.. Rosemead Tax Increment 2006A, 2006B, and 2010A Bonds
The Rosemead Redevelopment Commission issued Tax Increment Bonds in both 2006 and
2010 under previous redevelopment law. The outstanding obligation on these bonds is
approximately $67.5 million with payments due through 2033. Authorization from the
Oversight Board is being requested to continue making the debt service payments as
required by the bond covenants.
Recommendation: That the Oversight Board approve the required debt service payments
for the 2006A, 2006B, and 2010A Bonds as required by the bond covenants.
D. Capital Improvement Projects Funded by Existing Bond Proceeds
The Oversight Board is requested to authorize the use of existing bond proceeds to complete
capital improvement projects for which the bonds were sold. Such authorization by the
Oversight Board will comply with California Health and Safety Code section 34173, enacted
by ABx1 26, which states, "Bond proceeds shall be used for the purposes for which bonds
were sold unless the purpose can no longer be achieved, in which case, the proceeds may
be used to defease the bonds."
The Rosemead Redevelopment Commission issued Tax Increment Bonds in 2010 with the
intent to complete several community improvement projects. While some of the projects
specified in the bond covenants have been completed, others were in various phases of
construction or development when ABx1 26 was passed. As a result, all projects were put
on hold until further direction was provided by the Oversight Board and the Department of
Finance.
The Rosemead Successor Agency still holds approximately $7.7 million in bond proceeds
which had been previously approved for the following projects:
1. Rosemead Community Center and Public Plaza Expansion and Construction
2. Zapopan Park Improvements
3. Rosemead Park Improvements (Fitness and playground equipment)
4. Sewer System Expansion
5. Valley Blvd, Street Improvements
6. Rosemead Park Turf Improvements
7. Park Development at Rush & Walnut Grove
Each of these projects have been in various stages of development for a number of years
and have been previously reviewed and approved by the City Council or former
Redevelopment Commission Board in 2010 or earlier. A detailed description along with
background information for each project will be included in the Background section of this
report.
Page 4 of 6
ROSEMEAD OVERSIGHT BOARD MEETING AGENDA
April 25, 2012
Recommendation: That the Oversight Board authorize the use of existing bond proceeds
to complete the previously approved capital improvements projects as presented on the
ROPS.
E. Rosemead Senior Housing Complexes
The Rosemead Housing Development Corporation owns and operates two low- income
senior housing Facilities. The Angelus Senior Housing facility was built in 1995 and the
Garvey Senior Housing Facility was constructed in 2002. Under the laws which regulate
affordable housing, these facilities have covenants which require them to be maintained as
affordable housing facilities for 35 years and 55 years respectively.
The Rosemead Housing Development Corporation (RHDC) is a 501c3 non - profit
organization and relies solely upon funding from outside sources to operate and subsidize
the rents of these two facilities. As such, the RHDC has an Assistance and Operating
Agreement with the Rosemead Community Development Commission to provide funding
and operational staffing. This agreement provides for the transfer of low and moderate
income housing funds from the Community Development Commission to the RHDC to
subsidize the costs of administrative overhead and to make up any shortfalls between the
rents collected and general operational costs. The Rosemead Housing Development
Corporation also operates with a Ground Lease Agreement with the City of Rosemead,
which owns the land on which the senior housing facilities sit.
Recommendation: That the Oversight Board recognize the Assistance Lease and Ground
and Operating Agreement as an enforceable obligations and authorize payment from either
the low and moderate income housing funds being held by the Successor Agency or through
tax increment distribution.
Recognized Obligation Payment Schedule Approval
California Health and Safety Code section 34177 requires each Successor Agency to
prepare a Recognized Obligation Payment Schedule ( "ROPS ") and section 34180 requires
the Oversight Board to approve the ROPS. The approved ROPS is then required to be
transmitted to the County Auditor - Controller, the State Controller's Office and the State
Department of Finance.
A ROPS will be prepared and presented to the Oversight Board for each six -month period.
Due to the unique timing of the establishment of the Oversight Board and its first meeting,
ROPS for the periods of January through June 2012 and July through December 2012 have
both been prepared and are submitted for the Board's approval.
Page 5of6
ROSEMEAD OVERSIGHT BOARD MEETING AGENDA
April 25, 2012
Recommendation: That the Oversight Board approve Resolution 2012 -0003, entitled:
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION APPROVING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULES FOR
THE PERIOD OF JANUARY 1, 2012 THROUGH JUNE 30, 2012
AND JULY 1, 2012 THROUGH DECEMBER 31, 2012
G.
Designation of a Regular Meeting Schedule
California Health and Safety Code section 34179 requires the Oversight Board meetings to
be subject to the Ralph M. Brown Act (Brown Act). As such, a regular meeting schedule
needs to be approved. It is not anticipated that the Oversight Board will need to meet very
often and perhaps only twice per year once all the nuances are worked out; however the
Successor Agency staff is recommending the Board establish a monthly meeting date in the
event a meeting must take place. If there are no items on the agenda, the meeting would be
cancelled with the posting of appropriate notices.
Due to the City of Rosemead's existing meeting schedules, the Successor Agency staff has
requested that regular meetings be held on Wednesdays. Outside of this request, the Board
members may choose which Wednesday of the month and the starting time of the meeting.
Recommendation: That the Oversight Board approve Resolution 2012 -0002, entitled:
A RESOLUTION OF THE
SUCCESSOR AGENCY TO
DEVELOPMENT COMMISSI
MEETING SCHEDULE
4. ADJOURNMENT
OVERSIGHT BOARD FOR THE
THE ROSEMEAD COMMUNITY
)N ESTABLISHING A REGULAR
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