OB - Minutes - 09-16-13Minutes of the
Oversight Board for the Successor Agency to the
Rosemead Community Development Commission Meeting
September 16, 2013
The regular meeting of the Oversight Board for the Successor Agency to the Rosemead Community
Development Commission was called to order by Chair Wallach at 5:04 p.m. in the Rosemead City Council
Chamber located at 8838 East Valley Boulevard, Rosemead, California.
PLEDGE OF ALLEGIANCE: Board Member Allred
PRESENT: Board Members Allred, Jones, Lash, Redondo - Churchward, Sotelo
ABSENT: Board Members Miller, Wallach
STAFF PRESENT: Assistant City Manager Hawkesworth and City Clerk Molleda
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2. CONSENT CALENDAR
A. Minutes
May 13, 2013 — Regular Meeting
Board Member Dalila Sotelo made a motion, seconded by Board Member Marty Jones, to approve the
Oversight Board minutes of May 13, 2013 meeting. Vote resulted in:
Yes: Allred, Jones, Lash, Redondo - Churchward, Sotelo
No: None
Abstain: None
Absent: Miller, Wallach
June 12, 2013 — Regular Meeting
Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Marty Jones,
to approve the Oversight Board minutes of June 12, 2013 meeting. Vote resulted in:
Yes: Allred, Jones, Lash, Redondo - Churchward, Sotelo
No: None
Abstain: None
Absent: Miller, Wallach
Rosemead Oversight Board Meeting
Minutes of September 16, 2013
Page 1 of 5
3. MATTERS FROM STAFF OF THE ROSEMEAD SUCCESSOR AGENCY
A. Chamber Loan Agreement
On October 8, 2012, the Oversight Board approved modifications to the loan agreement
between the former Community Development Commission and the Rosemead Chamber of
Commerce (Chamber). Under the modifications, the first payment, due on July 1, 2012, was
amortized over the subsequent three years of the term without any penalties or interest. Per
the attached letter, the Chamber is requesting that the payments due July 1, 2013 and July
1, 2014 be suspended and one lump sum payment be made on July 1, 2015 for the entire
$25,000 amount. The requested modifications are permitted under the Health and Safety
Code since the debt is not being forgiven and the final payment period is not being extended.
Additionally, the loan will continue to be secured by the real property owned by the Chamber
and used as their offices.
Recommendation: That the Oversight Board provide direction regarding the requested loan
modification. If the Oversight Board is willing to approve the modifications as requested, the
Oversight Board needs to approve Resolution 2013 -0009, entitled:
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION APPROVING REVISED TERMS
FOR THE PROMISSORY NOTE WITH THE ROSEMEAD
CHAMBER OF COMMERCE DATED SEPTEMBER 14, 2010
Vice President Robert Oehler and CEO /Executive Director Helen Hua, representatives of the Rosemead
Chamber of Commerce addressed the Oversight Board Commission and requested a two -year extension to
their loan agreement.
Board Member Dalila Sotelo made a motion, seconded by Board Member Irene Redondo - Churchward,
to direct staff to modify Resolution No. 2013 -0009, to reflect a one year deferment. In addition, the
Oversight Board directed the Chamber of Commerce to work with City staff to develop an operating
financing plan that will demonstrate the likelihood of the repayment to the City by 2015. Vote resulted
in:
Yes: Allred, Jones, Lash, Redondo - Churchward, Sotelo
No: None
Abstain: None
Absent: Miller, Wallach
Rosemead Oversight Board Regular Meeting
Minutes of September 16, 2013
Page 2 of 5
B. Resolution No. 2013.0011 Approving the Loan Agreement between the City and the
Rosemead Successor Agency for Capital Improvement Projects to be Repaid by
Excess Bond Proceeds of the Rosemead Successor Agency
As the Board is aware, the Successor Agency has been working to obtain approval from the
State Department of Finance (DOF) for the completion of the capital improvement projects
funded with existing bond proceeds from the former redevelopment commission. On August
9, 2013, the DOF provided a letter to the City outlining the steps the City must follow in order
to expedite the intended bond funded projects. In the letter, the DOF suggests that the
Successor Agency may want to utilize the permitted loan procedures of Health and Safety
Code section 34173(h) to permit the City to move forward with the capital improvement
projects in a timelier manner. Staff and the City Attorney reviewed the DOF letter and the
Health and Safety Code, and agree that executing a loan agreement between the City and
the Successor Agency will provide for the most expedited method for moving forward with
the intended capital improvement projects. Under the loan agreement, the City will loan the
Successor Agency the funds to construct capital improvement projects, and the City will be
reimbursed by the Successor Agency every six months with the first reimbursement on
January 31, 2014. It is important to note that the Successor Agency has control of all the
bond funds in a bank account and will not need to wait for funding through Tax Increment or
the DOF.
The City will loan the Successor Agency funds, which will allow staff to move forward
immediately with some of the capital improvement projects, including the construction of the
Public Plaza and the expansion of the Rosemead Community Recreation Center (RCRC).
Bids have already been issued for the Public Plaza construction and an award may be made
at the September 24, 2013 City Council meeting. Additionally, engineering and planning
work necessary for the RCRC expansion will be completed as soon as possible in an effort
to meet the previously promised deadline of July 1, 2014 for re- opening of the center.
Recommendation: That the Oversight Board approve Resolution No. 2013 -0011, entitled:
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION APPROVING THE LOAN
AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND THE
SUCCESSOR AGENCY DATED SEPTEMBER 10, 2013
Assistant City Manager Matt Hawkesworth reviewed the staff report.
Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Dalila Sotelo,
to approve Oversight Board Resolution No. 2013.0011. Vote resulted in:
Yes: Allred, Jones, Lash, Redondo - Churchward, Sotelo
No: None
Abstain: None
Absent: Miller, Wallach
Rosemead Oversight Board Regular Meeting
Minutes of September 16, 2013
Page 3 of 5
C. ROPS Submittal — January through June 2013
The Department of Finance (DOF) requires that the Recognized Obligation Payment
Schedule (ROPS) for the January through June 2014 be submitted by October 1, 2013. As
with every previous ROPS, the layout and format of the schedules has been modified, and
the schedules may look slightly different.
The new ROPS document now includes a summary page, a fund balance page, a schedule
for the current ROPS period, a reconciliation page of prior ROPS periods, and a notes page.
The two major changes are to the reconciliation page and the inclusion of the new Fund
Balance page. The reconciliation page has new columns and formulas, which change has
the reconciliation and any necessary true -up payments are calculated. In our case, this has
created some true -up issues for the Administrative Cost Allowance and is described in detail
in the Analysis section of this report.
The Fund Balance page is new for this ROPS and is designed to provide a longer term look
at the funds available. Unfortunately, despite the title of "Fund Balances," this report is not
designed as a normal fund balance worksheet. As the Board may note in Column I for the
worksheet, there is no beginning balance and the revenues and expenditures are equal;
however, line 5 shows that the Successor Agency has a negative prior period adjustment of
$13,176 but the balance on line 6 is still zero. The DOF has locked this spreadsheet and
prohibits negative ending balances, which creates some unique financial reporting problems
to properly account for variances in a ROPS period. A detailed explanation is provided in the
Analysis section of this report. Printed copies of the entire new ROPS document have been
included with this report for approval by the Board.
Recommendation: That the Oversight Board approve the ROPS for the period of January
through June and Resolution No. 2013 -0010, 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, 2014 THROUGH JUNE 30, 2014
Assistant City Manager Matt Hawkesworth reviewed the staff report.
Board Member Dalila Sotelo made a motion, seconded by Board Member Jeff Allred, to approve
Oversight Board Resolution No. 2013.0010. Vote resulted in:
Yes: Allred, Jones, Lash, Redondo - Churchward, Sotelo
No: None
Abstain: None
Absent: Miller, Wallach
Rosemead Oversight Board Regular Meeting
Minutes of September 16, 2013
Page 4 of 5
4. ADJOURNMENT
The meeting adjourned at 5:47 pm. The next regular Rosemead Oversight Board meeting is scheduled to
take place on Wednesday, October 16, 2013 at 5:00 p.m.
Ny6ole La
Vice -Chair
ATTEST:
F
Matt H wkeswortll
Successor Agency Staff
Assistant City Manager
Rosemead Oversight Board Regular Meeting
Minutes of September 16, 2013
Page 5 of 5
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Matthew E. Hawkesworth, do hereby certify that the meeting minutes from September
16, 2013, were duly and regularly approved and adopted by the Oversight Board for the Successor
Agency to the Rosemead Community Development Commission on the 16+^ of October 2013, by
the following vote to wit:
Ayes: Allred, Lash, Redondo - Churchward, Wallach
Noes: None
Absent: Jones, Miller, Sotelo
Abstained: None
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Matthew 9. Hawkes4vorth
Successor Agency Staff
Assistant City Manager