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OB - Minutes - 04-25-12Minutes of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission Meeting April 25, 2012 The regular meeting of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission was called to order by City Clerk Molleda at 6:03 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PLEDGE OF ALLEGIANCE: City Clerk Molleda PRESENT: Board Members Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach STAFF PRESENT: City Attorney Richman, Assistant City Manager Hawkesworth, Director of Parks and Recreation Montgomery- Scott, Public Works Director Marcarello, and City Clerk Molleda 1. BOARD MEMBERS INTRODUCTIONS Board Members stated their names and the agencies they will be representing. 2. PUBLIC COMMENTS FROM THE AUDIENCE Steven Ly — stated he was not speaking on behalf of the City's Council or Commission of which he is a part of. He addressed the board regarding the importance of the City being able to continue utilizing its bond proceeds. Mr. Ly stated he felt the City of Rosemead had always utilized its redevelopment funds responsibly by targeting said funds for public improvement projects. He stated the City of Rosemead still has a lot of projects to complete and the city's residents will strongly rely on the services the City will provide once these projects are completed. 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. Rosemead Oversight Board Meeting Minutes ofApnl25, 2012 Page 1 of 7 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 REQUIRED BY HEALTH AND SAFETY CODE SECTION 34179 Board Member Jeff Allred made a motion, seconded by Board Member Raul Alvarez, to appoint Pat Wallach has the Chair of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission. Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None Chair Pat Wallach made a motion, seconded by Board Member Irene Redondo - Churchward, to appoint Raul Alvarez has the Vice Chair of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission. Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 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 Rosemead City Council Regular Meeting Minutes of Aril 25, 2012 Page 2 of 7 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. 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 2011/2012 AND 201212013 PURSUANT TO THE HEALTH AND SAFETY CODE SECTION 341776) AND (k) Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Jeff Allred made a motion, seconded by Board Member Nicole Lash, to approve Resolution No. 2012 -0004, approving the Successor Agency Administration Budget for the Fiscal Year 201112012 and 201212013 pursuant to the Health and Safety Code Section 341770) and (k). Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 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. Rosemead City Council Regular Meeting Minutes of Aril 25, 2012 Page 3 of 7 Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Nicole Lash made a motion, seconded by Board Member Irene Redondo - Churchward, to approve the required debt service payments for the 2006A, 2006B, and 2010A Bonds as required by the bond covenants. Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 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. Rosemead City Council Regular Meeting Minutes of An] 25, 2012 Page 4 of 7 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. Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Jeff Allred made a motion, seconded by Board Member Nicole Lash, to authorize the use of existing bond proceeds to complete the previously approved capital improvement projects as presented on the ROPS. Vote resulted in: Yes: Allred, Jones, Lash, Redondo - Churchward, Wallach No: Alvarez Abstain: None Absent: None 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. Assistant City Manager Matt Hawkesworth reviewed the staff report. Vice Chair Raul Alvarez made a motion, seconded by Board Member Irene Redondo - Churchward, to recognize the Assistance Lease and Ground and Operating Agreement as an enforceable obligations and authorize payment form either the low and moderate income housing funds being held by the Successor Agency or through tax increment distribution. Vote resulted in: Rosemead City Council Regular Meeting Minutes of Aril 25, 2012 Page 5 of 7 Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 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. 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 Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Jeff Allred made a motion, seconded by Board Member Nicole Lash, to approve Resolution No. 2012 -0003, approving the recognized obligation payment schedules for the period of January 1, 2012 through June 30, 2012 and July 1, 2012 through December 21, 2012. Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 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 Rosemead City Council Regular Meeting Minutes of Aril 25, 2012 Page 6 of 7 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 OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION ESTABLISHING A REGULAR MEETING SCHEDULE Board Member Nicole Lash made a motion, seconded by Vice Chair Raul Alvarez, to establish the THIRD WEDNESDAY OF EACH MONTH at 5:00 P.M. as the Oversight Board for the Successor Agency to the Rosemead Community Development Commission's regular meeting schedule. Vote resulted in: Yes: Allred, Alvarez, Jones, Lash, Redondo - Churchward, Wallach No: None Abstain: None Absent: None 4. ADJOURNMENT The meeting adjourned at 7:42 p.m. The next regular Oversight Board meeting is scheduled to take place on May 16, 2012 at 5:00 p.m. Pat Wallach Chair 0111:01n AVI a Matt H keswort Successor Agency Staff Assistant City Manager Rosemead City Council Regular Meeting Minutes of AM 25, 2012 Page 7 of 7 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Matthew E. Hawkesworth, do hereby certify that the meeting minutes from April 25, 2012, were duly and regularly approved and adopted by the Oversight Board for the Successor Agency to the Rosemead Community Development Commission on the 18th of July 2012, by the following vote to wit: Yes: Allred, Jones, Lash, Redondo- Chuchward, Wallach No: None Abstain: None Absent: Alvarez, Miller Matthew . Hawkesworth Successor Agency Staff Assistant City Manager