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2014-09-04 Oversight Board Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the Oversight Board in open session are available for public inspection. They may be inspected during regular business hours in the City Clerk's Office at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (323) 583-8811. Notification of at least 24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon Thursday, September 4, 2014, 4:00 p.m. Council Chamber, City Hall 4305 Santa Fe Avenue Vernon, California W. Michael McCormick, Chairperson Jonathan S. Fuhrman, Vice Chairperson William J. Davis, Board Member Mary Gallagher, Board Member Steven Reyes, Board Member David Vela, Board Member Marlene Dunn, Board Member CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the Oversight Board on any matter that is within the subject matter jurisdiction of the Board. The public will also be given a chance to comment on matters which are on the posted agenda during the Board’s deliberation on those specific matters. INTRODUCTION ITEM 1. Introduction of newly appointed Board Member Marlene Dunn who is replacing Alex Cherniss as the representative for the Los Angeles County Office of Education. Deputy City Clerk to administer the Oath of Office. Oversight Board of the Successor Agency to the Redevelopment Agency Regular Meeting Agenda September 4, 2014 Page 2 of 3 MINUTES – TO BE RECEIVED AND FILED 2. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held February 6, 2014. 3. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held March 6, 2014. ACTION ITEMS 4. Revisions to the Board’s Conflict of Interest Code, and authorization of the incorporation of said recommended Code into a Master City of Vernon Conflict of Interest Code. Recommendation: (1) Find that the proposed actions do not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because they constitute administrative activities; and even if the directives did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Review the Board’s existing Conflict of Interest Code (“Code”), and either (a) submit proposed revisions to the City Council or (b) recommend that no revisions be made. It is further recommended that the Commission direct its Chairperson to document said decision by filing the “2014 Local Agency Biennial Notice” with the Office of the City Clerk; and (3) Recommend that the City Council incorporate the Commission’s Code, with any recommended revisions, into one city-wide Master Conflict of Interest Code. 5. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized Obligation Payment Schedule for the period January 1, 2015 through June 30, 2015, and approving certain related actions pursuant to California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g). DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 6. Further direction to Successor Agency Staff regarding the winding down of affairs pursuant to AB26 and bond pay off with available funds. ORAL REPORTS 7. Announcement on the transition of summary Minutes to “action” Minutes effective July 1, 2014. 8. Announcement of AB1234 Ethics Training to be held September 16, 2014, at 9:00 am in the Council Chambers, City Hall. 9. Brief reports on activities, other brief announcements, and directives to staff. Oversight Board of the Successor Agency to the Redevelopment Agency Regular Meeting Agenda September 4, 2014 Page 3 of 3 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 28th day of August 2014. By: ________________________________ Ana Barcia, Secretary MINUTES OF THE REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON HELD THURSDAY, FEBRUARY 6, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: W. Michael McCormick, Jonathan S. Fuhrman, William J. Davis, Steven Reyes, Mary Gallagher and Alex Cherniss MEMBERS ABSENT: David Vela The meeting was called to order at 4:07 p.m. by Chairperson McCormick; Member Davis led the flag salute. Legal Counsel Gustavo Lamanna announced that there are no changes to the agenda. PUBLIC COMMENT Chairperson McCormick announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Board. No one responded. MINUTES 1. It was moved by Vice Chairperson Fuhrman and seconded by Member Davis to receive and file the Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held November 7, 2013. Motion carried, 5-0, Member Gallagher had not yet entered the meeting. ACTION ITEMS 1. Ratification of Resolutions approved by the Former Vernon Redevelopment Agency concerning Resolution Nos. RA-396 through RA-406 as part of the winding down of the Former Vernon Redevelopment Agency as follows: a. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-396 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on February 1, 2011, RA-396 Appointed Financial and Legal Consultants in Connection with the Proposed Issuance of its Tax Allocation Bonds; Making Certain Determinations Relating Thereto; and Authorized Certain Other Action in Connection Therewith. Oversight Board Regular Meeting Minutes February 6, 2014 Page 2 of 9 b. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-397 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on February 15, 2011, RA-397 Authorized the Issuance of its Industrial Redevelopment Project Tax Allocation Bonds; Approved a Form of First Supplemental Indenture, a Form of Purchase Contract, a Form of Continuing Disclosure Agreement and a Form of Official Statement; Making Certain Determinations Relating Thereto; and Authorized Certain Other Actions in Connection Therewith. c. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-398 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 1, 2011, RA-398 Approved the Assignment of and Assigning an Existing Obligation to Purchase and Develop a Certain Project to the Redevelopment Agency of the City of Vernon located at 4850 - 5050 Pacific Boulevard. d. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-399 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 1, 2011, RA-399 Approved the Assignment By the City of Vernon of Development Costs in Return for Trading Credits for Property Located at 3200 Fruitland in the City of Vernon and Superseding Resolution No. RA-346. e. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-400 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain Oversight Board Regular Meeting Minutes February 6, 2014 Page 3 of 9 related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 7, 2011, RA-400 Approved the Execution of an Assignment and Assumption Agreement by and Between the City of Vernon and the Redevelopment Agency of the City of Vernon to Convey Rights Under an Option Agreement for the Purchase of Property Located at 4850 – 5050 Pacific Boulevard, and Authorized the Chairman of the Board of Directors to Close Escrow on Property Located at 4850 – 5050 Pacific Boulevard. f. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-401 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 7, 2011, RA-401 Approved and Authorized the Expenditure of Development Costs Regarding Property Located at 4850 – 5050 Pacific Boulevard in the City of Vernon. g. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-402 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-402 Amended Section 18 of the Joint Exercise of Powers Agreement Relating to the Vernon Natural Gas Financing Authority. h. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-403 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-403 Approved and Authorized a Reimbursement Transfer in the amount of $13,865,160.10 to the City of Vernon for Oversight Board Regular Meeting Minutes February 6, 2014 Page 4 of 9 Funding of Capital Projects for benefit of the redevelopment project areas for the period 1996 to 2011. i. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-404 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-404 Approved and Ratified the Execution of an Engagement Letter Agreement Between the City of Vernon and DLA Piper LLP Relating to the Property Located at 3200 Fruitland Avenue in the City of Vernon. j. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-405 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on August 2, 2011, RA-405 found no present need for future Low- and Moderate-Income Housing in the City of Vernon. k. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-406 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on August 16, 2011, RA-406 Adopted a Budget for the Fiscal Year 2011-2012. Legal Counsel Gustavo Lamanna explained that there are a number of resolutions that were approved by the Former Redevelopment Agency (“RDA”), previous to ABx1 26, from the time period of January 1, 2011 through approximately August 2011 that may be subject to challenge under two current cases. He explained that because the sale of the Angelus Can property has been finalized, it is staff’s recommendation to make the actions of the RDA approved under AB46, pursuant to Health and Safety Code 34181, and formally confirm the actions. Oversight Board Regular Meeting Minutes February 6, 2014 Page 5 of 9 In response to Member Reyes, Lamanna advised that there are two open cases. He reported on the City of Brentwood and Foster City cases. In further response to Member Reyes, Lamanna advised that the judge has issued a tentative ruling in favor of local government and has asked the Attorney General’s Office for further briefings. Lamanna explained that the proposed actions are consistent with what the Board has been doing and would avoid any potential disruption considering the sale of the Angelus Can property. Lamanna reported that no hearing date has been set, in response to Member Reyes’ inquiry. Member Gallagher enters the meeting. In response to Member Reyes, Lamanna reported that Health and Safety Code Section 34181(a) authorizes the Oversight Board to ratify the actions taken by the RDA before the effectiveness of ABx1 26, to confirm the status quo. Gustavo further explained that any actions taken by the Board will be reviewed by the Department of Finance. In response to Member Reyes’ inquiry on the finding of completion and its role in the referenced cases, Lamanna explained that it does not insulate an agency from any potential challenges. In response to Reyes’ inquiry on the time urgency of the proposed actions, Lamanna explained that funds from the Angelus Can sale are in the Real Property Trust fund. Staff would like to distribute said funds to the taxing agencies, but opined that it would be prudent to hold on to the funds. To this, Vice Chairperson Fuhrman noted that it is not required. Vice Chairperson Fuhrman opined that there is no urgency to address the items this day. He advised that he is not comfortable taking action at this time as he would like additional time to review several items and their ramifications. Member Reyes additionally advised that he would like to hear more about the pending cases. Chairperson McCormick suggested postponing the item until the next Board meeting, March 6, 2014. Vice Chairperson Fuhrman concurred as this would allow sufficient time to address questions with staff. Member Cherniss inquired whether there were certain items Vice Chairperson Fuhrman had concerns over. In response Vice Chairperson Fuhrman advised that he had additional questions on proposed items 1.d, 1.g, and 1.h as notices on the agenda. The Board was in agreement to defer the items to the March 6, 2014, meeting. No action on Item No. 1 and its subsequent subsections was taken. 2. A Resolution of the Oversight Board of the Successor Agency to the former Redevelopment Agency of the City of Vernon approving the disposition of 4528 Bandini Oversight Board Regular Meeting Minutes February 6, 2014 Page 6 of 9 Boulevard, Vernon, CA 90058 (the Austin Trucking site) as an authorized disposition of assets and properties of the Former Redevelopment Agency of the City of Vernon under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Former Redevelopment Agency of the City of Vernon in conformance with this resolution. Legal Counsel Gustavo Lamanna reported on the second property addressed in the long-range property management plan, Austin Trucking. This is a vacant parcel which is subject to the taking by the California Department of Transportation (“CalTrans”) for their expansion of the I-710 freeway project. The proposed grant deed will transfer the property to the City of Vernon to hold in trust. The property will then be “off the books” for the Successor Agency. Vice Chairperson Fuhrman sought clarification. As he understands it, the proposal is to transfer ownership from the Successor Agency to the City without any consideration; no payment of funds. In response, Lamanna explained that it is a restricted grant deed with a specific covenant that the property will not be conveyed until the I-710 expansion. The property currently has no market value as there are no buyers for a property that has been identified in the CalTrans Environmental Impact Report as eminent domain. In response to Vice Chairperson Fuhrman’s concerns, Lamanna reported that CalTrans counsel was contacted, but that they declined to take the property as they have not yet made a final determination on the project. Vice Chairperson Fuhrman argued that the property has value. In response Successor Agency Staff Alex Kung explained how a value could not be obtained, additionally it is not known how much of the property CalTrans will take. He reported on their I-710 expansion plans. Vice Chairperson Fuhrman opined that a court would require CalTrans to compensate an agency for the takeover of a property. He does not support the recommendation to give the property to the City, even if the City is constrained on the property use. He advised that it would be a gift of public funds. Vice Chairperson Fuhrman noted that it was not clear in the long-range property management plan that the property would be given to the City without consideration. In response to Vice Chairperson Fuhrman, Lamanna advised that it is currently used as a parking lot. The property was acquired in 1991 for approximately $800,000. The property generates approximately $6,000 in rent per month. In response to Chairperson McCormick, Lamanna confirmed that the proposed grant deed would hold the property in trust for seven years. Oversight Board Regular Meeting Minutes February 6, 2014 Page 7 of 9 Member Reyes inquired on other options. In response, Lamanna explained that the decision is up to the Board. The Board could negotiate terms, but it would be prudent to obtain an appraisal to determine the property’s value; however, this will be at an expense and will delay the process. He further noted that it would also be contrary to the long-range property management plan already approved and filed with the Department of Finance. Alternatively, the Board can simply do what was outlined in the plan. In response to Member Reyes, Lamanna explained the property’s government use as 1) being taken by the I-710 freeway expansion, or 2) its original intent as the location for Vernon Fire Station No. 2. Kung further noted that the location is strategic in order to maintain the City’s Class 1 Fire Department rating. Member Gallagher inquired on the time needed to conduct the appraisal. In response, Lamanna reasoned that it would be a similar timeline as that of the appraisal conducted for the Angelus Can property. He advised that a request for proposals (“RFP”) would need to be conducted. Vice Chairperson Fuhrman advised that the template for the RPF was already available. Member Gallagher motioned to postpone discussions and reschedule the item to the March 6, 2014, meeting. It was seconded by Davis. Motion does not carry, 3-3, with Fuhrman, Reyes, and Cherniss in opposition. Member Cherniss directed staff to obtain the appraisal for the Austin Trucking property. Vice Chairperson Fuhrman added that it should be a dual appraisal, one for a standalone value where there is no eminent domain issue, and one for the value that the state would pay if it were to take the property. All were in agreement; Lamanna is to conduct the RFP process. No action on the proposed grant deed; the disposition of 4528 Bandini Boulevard, Vernon, CA 90058 (the Austin Trucking site) was taken. 3. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon directing the commencement of a refunding of Series 2005 and 2011 bonds with the Los Angeles County Dissolution Refunding Program. Legal Counsel Gustavo Lamanna reported on the County of Los Angeles’ upcoming deadline in order to participate in the dissolution refunding program. Lamanna explained that the proposed is slightly modified. The program is a straight refund for cost savings; savings that are passed on to the Successor Agency. However, staff recommends that the County assume the responsibility of the bonds. This will allow the Agency to further wind down, and conclude activities. However, staff’s intents have not been vetted through the County; Lamanna sought Member Reyes’ guidance on whom to contact. Oversight Board Regular Meeting Minutes February 6, 2014 Page 8 of 9 Successor Agency Staff Alex Kung further explained that the Agency has made much more progress than most and if all that is left is bond payments on the Recognized Obligation Payment Schedule, then this is something the County could take over. Member Reyes advised that he would be able to provide staff the appropriate contact information. In response to Vice Chairperson Fuhrman’s inquiry on the outstanding balance, Lamanna advised that the two bond series have an estimated $58 million remaining. Lamanna further explained that there are certain limitations to what can be done with the bonds. The Board directed staff to interface with Member Reyes to obtain an appropriate contact at the County. No action on the proposed resolution for the commencement of a refunding of Series 2005 and 2011 bonds with the Los Angeles County Dissolution Refunding Program was taken. 4. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized Obligation Payment Schedule for the period July 1, 2014 through December 31, 2014, and approving legally required related actions and notification to other government entities pursuant to California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g). Legal Counsel Gustavo Lamanna advised that the proposed Recognized Obligation Payment Schedule (“ROPS”) is consistent with previously approved schedules. Successor Agency Staff Alex Kung reported on a correction to the utilities payment for the period of July 2013 through December 2013. Lamanna reported that staff received a communication from the County requesting an interface for a prior period adjustment. Staff is seeking approval to make the modifications and bring back to the Board for ratification. It was moved by Member Gallagher and seconded by Member Davis to approve the proposed resolution approving Recognized Obligation Payment Schedule for the period July 1, 2014 through December 31, 2014, and authorizing staff to make modifications. Motion carried, 6-0. ORAL REPORTS Successor Agency Staff Alex Kung reported on the close of sale on the Angelus Can property. Demolition will be commencing within the month; a new building will be up soon. Kung reported on the communication and visit from the State Auditor-Controller’s Office to the City. A number of documents were requested and provided. Finance Director William Fox interfaced with the representatives on behalf of the Successor Agency. Oversight Board Regular Meeting Minutes February 6, 2014 Page 9 of 9 With no further business, at 5:11 p.m., Chairperson McCormick adjourned the meeting. ________________________ W. Michael McCormick Chairperson ATTEST: _________________________ Ana Barcia Secretary MINUTES OF THE REGULAR MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON HELD THURSDAY, MARCH 6, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: W. Michael McCormick, Jonathan S. Fuhrman, William J. Davis, Steven Reyes, Alex Cherniss, and David Vela MEMBERS ABSENT: Mary Gallagher The meeting was called to order at 4:10 p.m. by Chairperson McCormick; he also led the flag salute. CHANGES TO THE AGENDA Legal Counsel Gustavo Lamanna announced the removal of the February 6, 2014 Minutes from the agenda. PUBLIC COMMENT Chairperson McCormick announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Board. No one responded. ACTION ITEMS 1. Ratification of Resolutions approved by the Former Vernon Redevelopment Agency concerning Resolution Nos. RA-396 through RA-406 as part of the winding down of the Former Vernon Redevelopment Agency as follows: a. Resolution No. OB-25 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-396 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on February 1, 2011, RA-396 Appointed Financial and Legal Consultants in Connection with the Proposed Issuance of its Tax Allocation Bonds; Making Certain Determinations Relating Thereto; and Authorized Certain Other Action in Connection Therewith. b. Resolution No. OB-26 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-397 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with Oversight Board Regular Meeting Minutes March 6, 2014 Page 2 of 10 instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on February 15, 2011, RA-397 Authorized the Issuance of its Industrial Redevelopment Project Tax Allocation Bonds; Approved a Form of First Supplemental Indenture, a Form of Purchase Contract, a Form of Continuing Disclosure Agreement and a Form of Official Statement; Making Certain Determinations Relating Thereto; and Authorized Certain Other Actions in Connection Therewith. c. Resolution No. OB-27 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-398 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 1, 2011, RA-398 Approved the Assignment of and Assigning an Existing Obligation to Purchase and Develop a Certain Project to the Redevelopment Agency of the City of Vernon located at 4850 - 5050 Pacific Boulevard. d. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-399 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 1, 2011, RA-399 Approved the Assignment By the City of Vernon of Development Costs in Return for Trading Credits for Property Located at 3200 Fruitland in the City of Vernon and Superseding Resolution No. RA-346. e. Resolution No. OB-28 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-400 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. Oversight Board Regular Meeting Minutes March 6, 2014 Page 3 of 10 i. Approved on March 7, 2011, RA-400 Approved the Execution of an Assignment and Assumption Agreement by and Between the City of Vernon and the Redevelopment Agency of the City of Vernon to Convey Rights Under an Option Agreement for the Purchase of Property Located at 4850 – 5050 Pacific Boulevard, and Authorized the Chairman of the Board of Directors to Close Escrow on Property Located at 4850 – 5050 Pacific Boulevard. f. Resolution No. OB-29 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-401 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on March 7, 2011, RA-401 Approved and Authorized the Expenditure of Development Costs Regarding Property Located at 4850 – 5050 Pacific Boulevard in the City of Vernon. g. Resolution No. OB-30 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-402 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-402 Amended Section 18 of the Joint Exercise of Powers Agreement Relating to the Vernon Natural Gas Financing Authority. h. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-403 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-403 Approved and Authorized a Reimbursement Transfer in the amount of $13,865,160.10 to the City of Vernon for Funding of Capital Projects for benefit of the redevelopment project areas for the period 1996 to 2011. Oversight Board Regular Meeting Minutes March 6, 2014 Page 4 of 10 i. Resolution No. OB-31 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-404 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on June 7, 2011, RA-404 Approved and Ratified the Execution of an Engagement Letter Agreement Between the City of Vernon and DLA Piper LLP Relating to the Property Located at 3200 Fruitland Avenue in the City of Vernon. j. Resolution No. OB-32 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-405 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on August 2, 2011, RA-405 found no present need for future Low- and Moderate-Income Housing in the City of Vernon. k. Resolution No. OB-33 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving and ratifying the disposition of assets and properties in Resolution No. RA-406 as authorized actions under California Health & Safety Code Sections 34177 and 34181, and ratifying certain related actions pursuant to AB X1 26, as amended by AB 1484, AB 1585, and SB 341 with instructions to the Successor Agency to the Redevelopment Agency of the City of Vernon in conformance with this resolution. i. Approved on August 16, 2011, RA-406 Adopted a Budget for the Fiscal Year 2011-2012. Legal Counsel Gustavo Lamanna reported on the requested actions pursuant to Health and Safety Code Section 34181(a). He reported on the City of Brentwood and Foster City cases, both of which are still pending. As no decisions has been made, staff will continue to monitor and will brief the Board when results become available. Lamanna explained and presented on the Board’s role and approval process to dispose of all assets and properties. He noted the instability created by the pending cases of the City of Brentwood and Foster City. The proposed recommendations are Oversight Board Regular Meeting Minutes March 6, 2014 Page 5 of 10 consistent with the Board’s duties; furthermore, the actions approved by the Board will be reviewed by the Department of Finance. Lamanna explained that the recommendation addresses eleven (11) separate actions taken by the Former Redevelopment Agency (“RDA”). Although the Board can vote on each of the 11 proposed actions, he invites the Board to approve the ratification of the RDA Resolutions under one motion. However, Lamanna provided and presented on three different options. “Option 1,” which is staff’s recommendation, recommends the approval of the Oversight Board resolutions ratifying the prior actions of the RDA subject to the Department of Finance review. This allows the Board to continue on its path of winding down the affairs of the Successor Agency and would minimize the instability created by the uncertainty of the pending cases. “Option 2” recommends the approval of the Oversight Board resolutions ratifying the prior actions of the RDA, subject to the Brentwood and Foster City tentative decisions, and will not take effect until they are final and non-appealable. Lamanna explained that although approval would be given now, the action will not be effective until the cases have concluded. Vice Chairperson Fuhrman expressed his uncertainty on whether the proposed actions are necessary. In response, Lamanna explained how there is uncertain and the recommended actions would help move progress toward the mutual goal of the dissolution of assets and liability. “Option 3” recommends that the proposed ratification of the prior actions of the RDA be tabled until the next Oversight Board meeting following the court’s decision on the two cases. The final outcome will not be determined until the two cases have been litigated. No action on staff’s recommendations will be taken at this time. Lamanna advised that if the Board wished to approve all under one motion that would be appropriate. Vice Chairperson Fuhrman expressed his concerns with the approval of items 1.d, 1.g, 1.h, and 1.j as noticed on the agenda. Member Reyes is considering Option 3 as he is still unsure of the effects of the cases. Lamanna explained that under Options 2 or 3 the closing of the items would be pending the final determination of the two cases. In response to Member Reyes, Lamanna advised that not many other Oversight Boards have gotten as far as this Board. Should the Board approve the recommendations pursuant to Option 1, the approved items will be reviewed by the Department of Finance. Vice Chairperson Fuhrman noted that it could be a two-year process to go through the court’s appeal process. Member Reyes sought clarification from Vice Chairperson Fuhrman on the four items he objected to. Oversight Board Regular Meeting Minutes March 6, 2014 Page 6 of 10 Vice Chairperson Fuhrman reported on his objection to approve the following: 1.d. – Ratification of Resolution No. RA-399, the transfer to the City of reclaim trading credits in exchange for a project that he opined would never come to fruition. 1.h. – Ratification of Resolution No. RA-403, the $13 million cash transfer to the City. 1.g. – Ratification of Resolution No. RA-402, amendment to the Joint Powers Agreement with the Natural Gas Financing Authority. 1.j. – Ratification of Resolution No. RA-405, that determined that there is no need for low-to-moderate income housing in Vernon. It was moved by Member Davis and seconded by Vice Chairperson Fuhrman to approve items 1.a (Resolution No. OB-25), 1.b (Resolution No. OB-26), 1.c (Resolution No. OB-27), 1.e (Resolution No. OB-28), 1.f (Resolution No. OB-29), 1.i (Resolution No. OB-31), and 1.k (Resolution No. OB-33), as noticed on the agenda under Option No. 1 as proposed by staff. Motion carried, 6-0. Board addressed the remaining proposed items individually. Lamanna presented on item 1.d as noticed on the agenda, recommending the ratification of Resolution No. RA-399. The motion captured the assignment of power plan development costs in return for environmental trading credits of comparable value. Member Reyes questioned the provision of assets and resources without remuneration. Vice Chairperson Fuhrman further inquired on the status of the power plant. In response Lamanna explained that the power plant was intended to be a joint venture between the City of Vernon and the Former Redevelopment Agency. In order to build the plant, emission credits had to be purchased additionally development costs were expended; however, the power plant did not move forward. Lamanna advised that the credits were always under the name of the City. The action formally placed the development costs on the Redevelopment Agency’s books in case the development moved forward. Lamanna advised that some of the credits are still on the City’s books. Vice Chairperson Fuhrman stated that there are no realistic prospects to proceed with the power plant project. Lamanna advised that there is no immediate goal to build the power plant. Finance Director William Fox reported on closure of the San Onofre Nuclear Generating Station and the states internal need for a power plant. Vernon’s location would be optimal for a power plant. There is a strong likelihood for this based on the demand. Vice Chairperson Fuhrman inquired on the likelihood of winding down the affairs of the Agency if the development credits were on the Agency’s book. He opined that it may be easier to reverse the transaction and dispose of the trading credits. In response, Lamanna advised that the development costs are tied to a specific development project. There would be no Oversight Board Regular Meeting Minutes March 6, 2014 Page 7 of 10 compensation for the undoing of the transaction. He further explained that the credits were always under the City’s name. Member Reyes advised that the fair market value should be considered as it parallels the assessment of real property. By taking this approach or conducting further review would help guide the Board in its decision. Lamanna advised that staff has considered this route. He advised that there is no reason to unwind this action; the legitimacy should be ratified as an approved transfer. He questioned the ability of the Successor Agency to get the trading credits. Vice Chairperson Fuhrman advised that if no action is taken, the item remains status quo. If the Department of Finance determines that the action should be unwound, then the Board’s failure to endorse could potentially snowball the effects. Lamanna advised that if the Board decides on Option 3 then it remains status quo. It would be difficult for anyone to unwind the transaction as there is legal basis to support decisions made by the RDA during the first part of 2011. Staff’s reasoning for Options 1 or 2 is that it can expeditiously wind down the affairs of the Successor Agency and there is no potential instability. Vice Chairperson Fuhrman advised that he is sensitive to the winding down of the affairs but he does not want to be excessively generous in doing so. Lamanna noted that the financial auditors, Macias Gini and O’Connell, LLP, did not find the transaction questionable in their review of the financial statements. Lamanna advised that the goal is to expedite the process. If the Department of Finance has any concerns it will bring it to the Board’s attention. If the Board does not take an action, the Department of Finance will not review the item. Chairperson McCormick moved for Option 1 on the ratification of Resolution No. RA-399, item 1.d as noticed on the agenda. It was seconded by Member Davis. Motion fails, 2-4, with Fuhrman, Gallagher, Cherniss, Reyes, and Vela in opposition. Chairperson McCormick moved for Option 2 on the ratification of Resolution No. RA-399, item 1.d as noticed on the agenda. It was seconded by Member Davis. Motion fails, 2-4, with Fuhrman, Gallagher, Cherniss, Reyes, and Vela in opposition. Member Reyes moved for Option 3 on the ratification of Resolution No. RA-399, item 1.d as noticed on the agenda. It was seconded by Member Vela. Motion carries, 6-0. Member Vela exited the meeting. Lamanna reported on the ratification of Resolution No. RA-402, item 1.g. as noticed on the agenda, which addresses the amendment to the Joint Exercise Powers Agreement relating to the Vernon Natural Gas Financing Authority (“VNGFA”). He noted that the Successor Agency has ceased membership in the VNGFA. Oversight Board Regular Meeting Minutes March 6, 2014 Page 8 of 10 In response to Vice Chairperson Fuhrman’s concerns, Lamanna explained that there is no debt in the VNGFA, the Successor Agency has ceased membership, and the VNGFA is subject to termination. Vice Chairperson Fuhrman withdraws his objection to approval under Option 1 for the proposed item. It was moved by Chairperson McCormick and seconded by Member Reyes to approve the Ratification of Resolution No. RA-402, under Option 1, item 1.g as noticed on the agenda; memorialized as Resolution No. OB-30. Motion carries, 5-0. Lamanna reported on the ratification of Resolution No. RA-403, item 1.h. as noticed on the agenda, which addresses the reimbursement transfer in the amount of approximately $13 million to the City. Lamanna recalled that a demand letter from the Oversight Board was sent to the City and that no action had resulted. Vice Chairperson Fuhrman stated his opposition to not approve the proposed, for reasons previously established. It was moved by Member Reyes and seconded by Vice Chairperson Fuhrman to select Option 3, which is no action on the proposed; item 1.h as noticed on the agenda will be tabled until the cases have been resolved. Motion carried, 5-0. Lamanna reported on the ratification of Resolution No. RA-405, item 1.j. as noticed on the agenda, which addressed the need for low-and-moderate income housing at the time. In response to Vice Chairperson Fuhrman’s concerns Lamanna explained that due to public safety no additional low-and- moderate income housing was determined to be needed. Member Reyes questioned whether the ratification by the Board of the proposed was appropriate. Lamanna explained that it is the ratification of the RDA actions in terms of the disposition of assets or funds; therefore, it is appropriate for the Board to consider. It was moved by Member Davis and seconded by Chairperson McCormick to approve item 1.j as noticed on the agenda, pursuant to Option 1. Motion fails, 2-2-1, with Reyes and Cherniss in opposition, and Fuhrman abstaining. Kung explained that the Agency went through the state’s process to make this determination. This is the usual determination as there are few areas zoned for housing and the City is primarily industrial. Because there is a rendering plan in Vernon, there was not a desire to place additional housing in the area. Kung explained how the resident community decreased as industry grew over the years. A low-moderate income housing project is now being developed near Maywood in accordance with the good governance reforms in order to double the City’s population. Kung noted that historically these were the findings that the state approved. In response to Vice Chairperson Fuhrman’s reasoning that now a location for additional housing has been identified, Kung explained that the property was previously obtained by the City Oversight Board Regular Meeting Minutes March 6, 2014 Page 9 of 10 in order to build a new Fire Station, but that due to budgetary constraints the project never came to fruition. The property was recently rezoned to address the housing need. Staff confirmed for Member Reyes that there are no other properties in Vernon that could accommodate housing. Chairperson McCormick added that the site became available after the occupant went out of business. He noted that there is industry on both sides of the property. After considering staff’s reporting, Member Reyes is in support of Option 1. The board reconsidered the motion. It was moved by Member Davis and seconded by Chairperson McCormick to approve item 1.j as noticed on the agenda, pursuant to Option 1; memorialized by Resolution No. OB-32. Motion carried, 4-0-1, with Fuhrman abstaining. 2. Resolution No. OB-34 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon allowing the Successor Agency of the Vernon Redevelopment Agency to create an enforceable obligation to conduct the work of winding down the former Vernon Redevelopment Agency, including the approval of contracting of the professional services of a qualified appraisal firm to complete the appraisal of 4528 Bandini Boulevard pursuant to California Health & Safety Code Section 34177.3(b). Legal Counsel Gustavo Lamanna advised that at the previous meeting staff had proposed to implement the long-range property management plan and convey the Austin Trucking site to the City of Vernon. The Board directed staff to conduct a request for proposal (“RFP”) process to obtain a firm in order to conduct an appraisal of the site. The RFP process has been conducted and two proposals were received. Lamanna reported on the proposals. He noted that the County Department of Finance will most likely object to the expense, as it is not part of the long-range property management plan. It was moved by Vice Chairperson Fuhrman and seconded by Member Cherniss to select Curtis Rosenthal to conduct the appraisal and approve Resolution No. OB-34. Motion carried, 5-0. 3. Resolution No. OB-35 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon adopting, approving, and ratifying the Recognized Obligation Payment Schedule for the period July 1, 2014 through December 31, 2014, and approving certain related actions pursuant to California Health & Safety Code Sections 34177(l), 34177(m) And 34180(g). Legal Counsel Gustavo Lamanna explained that this is a new Recognized Obligation Payment Schedule (“ROPS”) that will supersede and replace the previously approved ROPS during the February 6, 2014, meeting. He advised that much discussion was had with the County Auditor Controller’s Office. Vice Chairperson Fuhrman noted that the $5,000 for the appraisal cost was listed as a non-administrative item. In response Lamanna explained that it is considered part of the property disposition and has been previously noted as such. Oversight Board Regular Meeting Minutes March 6, 2014 Page 10 of 10 It was moved by Vice Chairperson Fuhrman and seconded by Member Davis to approve Resolution No. OB-35. Motion carried, 5-0. ORAL REPORTS Successor Agency Staff Alex Kung reported that demolition at the Angelus Can property has commenced. Vice Chairperson Fuhrman inquired whether there was a need for Oversight Board meetings in the upcoming months. It was determined that there was no need. The Board is to meet in June at its regularly scheduled date. Should there be a need, a special meeting can be called. All other meetings until said date are cancelled. All were in agreement With no further business, at 5:12 p.m., Chairperson McCormick adjourned the meeting. ________________________ W. Michael McCormick Chairperson ATTEST: _________________________ Ana Barcia Secretary STAFF REPORT GITY CLERK'S OFFICE DATE: TO: FROM: RE: September 2,2014 Honorable Chairperson and Members of the Oversight Board of the Successor Agency to the Redevelopment Agency Ana Barcia, Deputy City Cterk b Revisions to the Board's Conflict of Interest Code, and authorization of the incorporation of said recommended Code into a Master City of Vernon Conflict of Interest Code Recommendation It is recommended that the Board: Find that the proposed actions do not constitute a "project" pursuant to section 15378(bX2) of the Guidelines to the California Environmental Quality Act ("CEQA"), because they constitute administrative activities; and even if the directives did constitute a project, it would be exempt from CEQA in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment; and Review the Board's existing Conflict of Interest Code ("Code"), and either (a) submit proposed revisions to the City Council or (b) recommend that no revisions be made. [t is further recommended that the Commission direct its Chairperson to document said decision by filing the "2014 Local Agency Biennial Notice" with the Office of the City Clerk; and Recommend that the City Council incorporate the Commission's Code, with any recommended revisions, into one city-wide Master Conflict of Interest Code. Background The Political Reform Act requires each local agency to adopt and update its Conflict of Interest Code ("Code") biennially, if necessary. The Code must enumerate the positions "which involve the making or participation in the making of decisions which may foreseeably have a material effect on any financial interest of that position." The Code must also specify the categories of financial disclosure that are required for each designated position. Each individual holding a l. 2. J. position listed within the Code must file a "Statement of Economic Interest" (the "Form 700") and disclose his or her financial interests in the specified categories. Government Code Section 87306.5 requires the City, and local agencies, boards and commissions to review their conflict of interest codes before October l't: "87306.5. No later than July 1 of each even-numbered year, the code reviewing body shall direct every local agency which has adopted a Conflict of Interest Code in accordance with this title to review its Conflict of Interest Code and, if a change in its code is necessitated by changed circumstances, submit an amended Conflict of Interest Code in accordance with subdivision (a) of Section 87302 and Section 87303 to the code reviewing body." Currently the City and all City affiliated agencies, boards, and commissions have their own stand-alone Conflict of Interest Codes. On June 17, 2074, the City Council directed each board, agency, committee, and commission affiliated with the City to review its Conflict of Interest Code, and to, by October 1,2014, either submit proposed revisions to City Council or recommend that no revisions be made. To improve administration, staff was directed to compile all proposed conflict of interest codes into one Master Conflict of Interest Code applicable to all City of Vernon agencies, boards, and commissions. To facilitate the review process, the existing Conflict of Interest Code applicable to the Oversight Board Resolution No. OB-9 is provided. Staff recommends that the Board approve the attached schedules as part of the proposed revisions to the City Council. The schedules include the recommended Board filers, disclosure categories and proposed conflict of interest code language. Fiscal Impact There is no fiscal impact. RESOLUTION NO. OB-9 A RESOLUTION OE THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OE THE CITY OF VERNON ADOPTING A CONFL]CT OF INTEREST CODE FOR THE OVERSIGHT BOARD U0HEREAS, the Oversight Board to the Successor Agency to the dissolved Redevelopment Agency of the City of Vernon has been appointed pursuant to the provisions of the Hea1th & Safety Code section 341,7 9; and WHEREAS, the Oversight Board is deemed a local entity for purposes of the Political Reform Act; and WHEREAS, pursuant to the Political Reform Act and requlations promulgated thereunder by the Fair Po1itical Practices Commission of the State of California (EPPC), a newly establ-ished Iocal entity is required to adopt a conflict of interest code; and WHEREAS, the Oversight Board finds and determines that it is appropriate to adopt as its conflict of interest code the model- confl-ict of interest code promulgated by the FPPC as set forth in this ResoLution. NOW, THEREEORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OE THE CITY OF VERNON AS EOLLOWS: SECTION l-: The Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: Pursuant to the Pofitical Reform Act of l9'74, Government Code Section 87300 et s€e., and Section 18730 of Title 2 of the California Code of Regulations, the Oversight Board adopts the model confl-ict of interest code promulgated by the Fair Political practices Commission of the State of California as set forth in Section 18730 of Title 2 of the California Code of Regulations, which model- conflict of interest code is incorporated herein by reference, and which, together with the list of designated positions and the disclosure categories applicable to each designated position as set forth in this Resolution, collectively constitutes the Oversight Board,s conflict of interest code. As the model conflict of interest code set forth 1n Section 18730 of Title 2 of the California Code of Regulations is amended from time to time by State law, regulatory action of the Faj-r PoIitical Practices Commission ("EPPC"), or judicj.al determinations, the portion of the Board's conf1ict of interest code comprising the model conflict of interest code shall be deemed automatically amended without further action to incorporate by reference all such amendments to the model- confl-ict of interest code so as to remain in compliance therewith. Nothing in this Resolution shall supersede the independent applicability of Government Code Section 81200. SECTION 3: The following are the desiqnated positions, the holders of which shall be required to file statements of economic interests: Oversight Board members. Statement of economic interests shall be filed by the Oversight Board members with the Acting City Clerk of the City of Vernon which acts as the Acting Secretary to the Oversight Board. SECTION 4: Pursuant to Health and Safety Code section 34179 (h) , aII actions taken bY the the State of Californla Department Oversight Board may be reviewed bY of Einance, and, therefore, this 2 Resolution shalI not be effective for three (3) business days, pending a request for review by the State of California Department of Einance. SECTION 5: The Acting Secretary of the Oversj-ght Board, shall certify to .the passage, approval and adoption of this resolution, and the Acting Secretary shall cause this resol-ution and the Secretary's certification to be properly filed. APPROVED AND ADOPTED this 4th day of October, 2072. W. !{ichael McCormick Title: Chairman / Tte:€ffi-u Secretary _3_ STATE OE CALIFORN]A ))ss COUNTY OF LOS ANGELES ) I, Dana Reed, acting on behalf of the Oversight Board as its Acting Secretary, do hereby certify that the foregoing Resolution, being Resolution No. OB-9, was duly passed, approved and adopted by the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon at a regular meeting of the Oversight Board duly held on Thursday, October 4, 2072, and thereafter was duly signed by the Chairman or Vice Chairman of the Oversight Board. (SEAL) -4- Executed this & day of october Proposed Schedule: Board Fi I ers Proposed positions and disclosure categories: Oversight Board of the Successor Agency to the Redevelopment Agency Proposed Schedule: Disclosure Categories Proposed City-Wide Disclosure Categories Individuals holding designated positions must report their interests according to the following corresponding disclosure categories to which their position has been assigned. Such individuals shall be required to disclose such interests to the extent that their economic interests may foreseeably be affected materially by any decision made or participated in by the individual by virtue of his or her position. 1. All Vernon Real Property. All interests in real property within the City of Vernon, including property, any portion of which is located within a two mile radius of the City or within two miles of any property owned or used by the City. Real property used primarily as the official's personal residence (such as a home or personal vacation home) need not be disclosed. 2. All Vernon Investments. All investments and business positions from sources located in, doing business in, or planning to do business in the City of Vernon. 3. All Vernon Income and Gifts. All income, including loans, gifts and travel payments, from sources located in, doing business in, or planning to do business in the City of Vernon. Proposed Schedule: Code Language CITY OF VERNON et. al. CONFLICT OF INTEREST CODE The Political Reform Act of 1974,as amended (Government Code Sections 81000, et seq.), requires state and local government agencies to adopt conflict of interest codes. The Fair Political Practices Commission has adopted a regulation,2 California Code of Regulations Section 18730, which contains the terms of a standard conflict of interest code which may be incorporated by reference and which may be amended by the Fair Political Practices Commission after public notice and hearing to conform to amendments of the Political Reform Act. The terms of the standard conflict of interest code in 2 California Code of Regulations Section 18730 and any amendments thereto, along with Appendix A and Appendix B in which officials and employees are designated and disclosure categories are established, are hereby incorporated by reference and shall constitute the Conflict of Interest Code. Members of the governing body shall not be financially interested in any contract made by the governing body or in any contract they make in their capacity as members of their respective governing body as provided in Government Code Sections 1090, et seq. A member shall not be considered to be financially interested in a contract if his or her interest is included within a legally recognized exception. 2014 LocalAgency Biennial Notice Name ofAgency: Mailing Address: Contact Person: Oversight Board of the Successor Agency to the RDA 4305 Santa Fe Avenue, Vernon, CA 90058 Phone No: E-Mail: Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency's code includes disclosure by those agency officials who make or participate in making governmental decisions. This agency has reviewed its conflict of interest code and has determined that (check one box): @ An amendment is required. The following amendments are necessary: (Mark all that apply.) o lnclude new positions (including consultants) that must be designated . Revise disclosure categories . Revise the titles of existing positions o Delete positions that no longer make or participate in making governmental decisions o Other (describe) I The code is currently under review by the code reviewing body. I No amendment is required. (lf your code is more than five years old, amendments may be necessary.) Verification This agency's conflict of interest code accurately designates all positions that make or pafticipate in the making of govemmental decisions. The disclosure categories assigned to those poslllors accurately require the disclosure of all investments, bus,ness pos,llons, interests in real propefty, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions. The code includes all other provisions required by Government Code Section 87302. HBnxlxFa(ffixxf,ExrilNrue(Qmoff Dale comprete ,"0 F"[Br?rtiB€[t"tB" ]Ltnc"?Jitsi.t& n"w recenfly your code was approved or amended. prease return this notice no later than Octobe l, 2014, or by the date specirled by your agency, if earlier, to: (PLACE RETURN ADDRESS OF THE CODE REVIEWING BODY HERE) PLEASE DO NOT RETURN THIS FORM TO THE FPPC Calrfornia Fair Political Practices Commission www.fppc.ca.gov 866-275-3772 advice@fppc.ca.gov 6114 SUCCESSORAGENCY FORTHE VERNON REGEBVED REDEVELOPMENT AGENCY AUG 2 7 ?014 CITY CLERI('S OFTICE STAFF REPORT DATE: August 25,2014 TO: Honorable Chairperson and Members of the Oversight Board to the Successor Agency for the Vernon Redevelopment Agency FROM: Alex Kung, Successor Agency Staff A+ At>z / t 1 RE: Recognized Obligation Payment Schedule for 2014-2015 Period B (January I, 2015 through June 30,2015) Recommendation: Successor Agency staff recommends the Oversight Board approve the attached resolution to approve the attached forward-looking recognized obligation payment schedule ("ROPS"). Backsround: Pursuant to Health & Safety Code sections 34177(m) and 34180(g), the Successor Agency must submit its ROPS for the six months beginning January 1,2015 through June 30, 2015. This action requires Oversight Board approval. ROPS The Successor Agency staff prepared the ROPS for this period and circulated the ROPS for the September 4,2014 Oversight Board meeting. Attachmentl) Resolution approving final ROPS with ROPS attached RESOLUTION NO. OB- A RESOLUTION OF THE OVERSIGHT BOARD OE THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OE VERNON ADOPTING, APPROVING, AND RATIFYING THB RECOGN]ZED OBLIGATION PAYMENT SCHEDULE FOR THEpERroD JANUARY 7, 2015 THROUGH JUNE 30, 20!5, AND APPROVING CERTAIN RELATED ACTIONS PURSUANT TO CALTEORNTA HEALTH & SAEETY CODE SECTIONS 341,71 (t) ,34177(m) AND 34180(g) WHEREAS, oo September 4, 2074, the Oversight Board of the Successor Agency to the Redevel-opment Agency to the City of Vernon ("Oversiqht Board") considered the adoption, approval and ratification of the Recognized Obligation Payment Schedule of the Successor Agency to the former Vernon Redevel-opment Agency for the reporting period of January 7, 20L5 through June 30, 201,5 (*ROPS'r.") also referred to as 14-15Busing the electronj-c-version of the recognized obligation payment schedule provided to the Successor Agency by the Department of Ej-nance ("Finance") ; and WHEREAST ori September 4, 20L4, the Oversight Board approved ROPS 7 with the express authorization to allow staff of the Successor Agency to the former Vernon Redevel-opment Agency ("successor Agency") to negotiate with the Los Angeles County Audltor-Control-l-er to assure the prior period adjustments are accurately ref1ected and that there is sufficient funding appropriately set aside to satisfy indebtedness of the former Vernon Redevelopment Agency, including the Series 2OO5 and 2011 bonds; and WHEREAS, in furtherance of the foregoing recitals, the oversight Board desires to adopt, approve, and ratify the Rops l attached hereto and instruct staff and special counsel to the Successor Agency to negotiate with the Los Angeles County Auditor- Control-l-er and Einance, ds and if appropriate, fol-lowing the September 4, 2074 meeting of the oversight Board, to assure the goars and desires of the Oversight Board in this resolutj-on are carried out. NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OE THE CITY OE VERNON AS FOLLOWS: SECTION 1: The Oversight Board of the Successor Agency to the Redeveropment Agency of the city of Vernon hereby finds and determines that the above reci-tals are true and correct. SECTION 2: The Oversight Board of the Successor Agency to the Redevelopment Agency of the city of Vernon hereby adopts, approves, and ratifies ROPS '7, in the form attached to this Resolution as Exhibit A, pursuant to Cal-ifornia Health & Safety Code sections 34717 (l) , 34117 (m) , and 34180 (g) . SECTION 3: Pursuant to Cal-ifornia Heal-th & Safety Code section 3477 9 (h) , Flnance may review an oversight board action. An actj-on of the oversight board shall become effectj-ve five business days after notice in the manner specified by Einance is provided unless Finance requests review. The Assistant Executive Dj-rector of the successor Agency, Mr. Alex Kung, c/o Vernon city Hal-r, 4305 santa Ee Avenue, Vernon, cA 90058 Telephone (323) 583-8811 Extensj-on 355 (akungGci.vernon.ca.us) is designated as the official for notice of revj-ew by Finance. Except as otherwise provided in Cal-ifornia Health & Safety Code section 3411 9 (h) , in the event Finance requests a review of a given oversight board acti-on, Einance shall- have 40 days from the date of this request to approve the oversj-ght board action or return it to the oversight board for reconsideration; the oversight board shal-l resubmit the modified action for Finance approval and the modified 2- oversight board action shall not become effective until- approved by Finance. SECTION 4: The Secretary of the Oversight Board, shal_l_ certify to the passdge, approval and adoption of this resolution, and the Secretary shal-l- cause this resorution and the Secretary, s certification to be properly filed. APPROVED AND ADOPTED this 4th day of September, 2014. Name: Title: Chairman / Vice Chairman ATTEST: Ana Barcia, Secretary 3- STATE OF CALIFORNIA ) ) ss couNTY oF LOS ANGBLES ) r, Ana Barcia, actj-ng on behal-f of the oversight Board as its secretary, do hereby certify that the foregoing Resolution, being Resol-ution No. oB- , was duly passed, approved and adopted by the Oversight Board of the Successor Agency to the Redevel-opment Agency of the City of Vernon at a regular meeting of the Oversight Board duly held on Thursday, September 4, 2014, and thereafter was duly signed by the Chairman or Vice Chairman of the Oversight Board. Executed this _ day of september, 2074, dt Vernon, california. Ana Barcia, Secretary ( SEAL ) 4-