OB - 2012-0004 - Approving the Successor Agency Administrative Budget for the FY 2011-2012 and 2012-2013 Purusuant to the Health adn Safety Code Sec. 34177 (j) and (k)RESOLUTION: 2012 -0004
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING THE
SUCCESSOR AGENCY ADMINISTRATIVE BUDET FOR THE FISCAL YEARS 201112012
AND 2012/2013 PURSUANT TO THE HEALTH AND SAFETY CODE SECTION 341770)
AND (k)
WHEREAS, California Health and Safety Code section 341770) requires that each Successor
Agency prepare an administrative budget for each six month fiscal period; and
WHEREAS, a draft administrative budget for the Fiscal Years 2011/2012 and 201212013 are
attached hereto as Exhibit A; and
WHEREAS, Section 34177(k) requires each Successor Agency to provide to the County
Auditor - Controller administrative cost estimates for expenses from the administrative budget that are
to be paid from the property tax revenues deposited in the Redevelopment Property Tax Trust Fund
for each six month fiscal period.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION HEREBY RESOLVES:
1. The Administrative budget for the Fiscal Years 2011/2012 and 2012/2013 attached hereto
as Exhibit A are hereby approved.
2. The Successor Agency staff is directed to provide the required cost estimates for expenses
to the County Auditor - Controller.
PASSED, APPROVED AND ADOPTED this 25th day of April 2012.
Chairperson
ATTEST:
J
MatthevXE. Hawl esworth
Successor Agency Staff
Assistant City Manager
HEREBY CERTIFY that the above and foregoing resolution was duly passed and adopted by the
Oversight Board for the Successor Agency to the Rosemead Community Development Commission
at its special meeting held on the 25 day of April 2012, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
Matth w E. H wkesworth
Successor Agency Staff
Assistant City Manager
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Matthew E. Hawkesworth, Successor Agency Staff of the Oversight Board for the
Successor Agency to the Rosemead Community Development Commission, do hereby
certify that the foregoing Resolution No. 2012 -0004, entitled:
A RESOLUTION OF THE OVERSIGHT BOARD
FOR THE SUCCESSOR AGENCY TO THE
ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION APPROVING THE SUCCESSOR
AGENCY ADMINISTRATIVE BUDET FOR THE
FISCAL YEARS 2011/2012 AND 2012/2013
PURSUANT TO THE HEALTH AND SAFETY CODE
SECTION 34177(j) AND (k)
was duly and regularly approved and adopted by the Rosemead Oversight Board of the
Successor Agency to the Rosemead Community Development Commission on the 25 of
April 2012, by the following vote to wit:
Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach
No: None
Abstain: None
Absent: None
Matth w E. Hawkesworth _
Successor Agency Staff
ROSEMEAD SUCCESSOR
AGENCY STAFF REPORT
TO: THE HONORABLE CHAIR AND BOARD MEMBERS
FROM: MATTHEW HAWKESWORTH, ASSISTANT CITY MANAGER
DATE: APRIL 25, 2012
SUBJECT: ROSEMEAD REDEVELOPMENT OVERVIEW AND ADMNISTRATIVE
COST ALLOWANCE
SUMMARY
The Rosemead Redevelopment Commission established is 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 operational
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.
ITEM NO. �----
Rosemead Successor Agency Oversight Board
April 25, 2012
Page 2 of 3
Staff Recommendation:
That the Oversight Board approve Resolution 2012 -0004 regarding the administrative
cost allowance budget of $250,000.
BACKGROUND
Since 1972 when the Rosemead Community Development Commission was first
established, the Commission strived to remove or reduce blight in accordance with the
original intent of redevelopment law. During this time the Commission has completed
numerous improvement projects which not only provided a benefit to the City, but also
provided improvements necessary for County and school district programs to be
successful. These projects included:
• Construction of Fire Station No. 4 on San Gabriel Blvd.
• Development of the Sports Complex at Temple Intermediate School
• Construction of the Alhambra Wash Pedestrian Bridge for access to Rice School
• Construction of an all- weather track at Rosemead High School
• Construction of the County Library on South Del Mar (closed due to funding)
• Widening of the San Gabriel Blvd and Hwy 10 Overpasss
• Garvey Ave. water main improvements
• Storm drain installations
• Construction of two low- income senior housing complexes
• Undergrounding of utilities on Garvey Ave.
• Construction of medians along Rosemead Blvd. (State Hwy 19)
• Installation of ADA accessible pedestrian ramps at intersections
• Construction of the Zapopan Community Center (now the Public Safety Center)
and Zapopan Park
• Jogging Trail /Fitness Zones at Rosemead Park
• Original expansion of the Rosemead Community Recreation Center
• Owner occupied residential rehab loans and grants
• Acquisition of residential low- income single family housing
• Construction of the Rosemead Aquatics Center which is used by both Rosemead
High School and San Gabriel High School for athletics and physical education
Many of the projects listed above were funded from the proceeds of tax increment
bonds issued by the Commission. The Successor Agency is now responsible for the
oversight and repayment of the existing outstanding bonds which consist of the Series
2006A, 2006B and 2010A bonds. Costs related to the repayment and oversight must
be accounted for as part of the Administrative Cost Allowance. Furthermore, all staffing,
supplies, legal and other related contractual costs directly related to the Successor
Agency may also be charged to the Administrative Cost Allowance.
The Oversight Board is required to approve the Administrative Cost Allowance budget
for each fiscal year (July — June). Due to the unique timing of the first meeting and the
implementation of all the new regulations, two fiscal years are being presented to the
Oversight Board for approval. The Oversight Board is requested to approve both the
2011 -2012 and 2012 -2013 Fiscal Year budgets.
Rosemead Successor Agency Oversight Board
April 25, 2012
Page 3 of 3
The budget for the 2011 -2012 Fiscal Year includes the following:
Project Description
Payee
Annual
Cost
Continuing Disclosure on Bonds
Urban Futures
$5,200
State Controller Report Preparation
RAMS
$1,000
Bond Trustee Banking fees
US Bank
$2,014
Annual Audit
RAMS
$8,076
Financial System Lease
Bank of the West
$5,801
Statement of Indebtedness Preparation
Redevelopment Reporting
Solutions
$1,000
Arbitrage Rebate Calculations
Willdan
$4,100
Tax Increment audits & monitoring
HDL
$6,300
Personnel, Supply and Legal Costs
Various
$178,025
Total Administrative Budget
$211,516'
The budget for the 2012 -13 Fiscal Year includes the following:
Project Description
Payee
Annual
Cost
Continuing Disclosure on Bonds
Urban Futures
$5,200
State Controller Report Preparation
RAMS
$1,000
Bond Trustee Banking fees
US Bank
$2,014
Annual Audit
RAMS
$8,076
Financial System Lease
Bank of the West
$11,600
Statement of Indebtedness Preparation
Redevelopment Reporting
Solutions
$1,000
Arbitrage Rebate Calculations
Willdan
$4,100
Tax Increment audits & monitoring
HDL
$12,600
Personnel, Supply and Legal Costs
Various
$204,410
Total Administrative Budget
$250,000
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process in
accordance with the Brown Act.
Prepared by:
Matthew E. Hawkesworth
Assistant City Manager