2016-01-26 Oversight Board Agenda Packet (Special)California 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 Office of the City Clerk 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 Office of the City Clerk 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
Special Meeting of the
Oversight Board of the Successor Agency
to the Redevelopment Agency of the City of Vernon
Tuesday, January 26, 2016, 4:00 p.m.
Council Chamber, City Hall
4305 Santa Fe Avenue
Vernon, California
Teleconference Location:
3220 E. Sierra Madre Boulevard
Pasadena, CA 91107
W. Michael McCormick, Chairperson
Jonathan S. Fuhrman, Vice Chairperson
William J. Davis, Board Member
Mary Gallagher, Board Member
David Vela, Board Member
Vacant, Board Member
Vacant, 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.
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Agenda January 26, 2016
Page 2 of 3
MINUTES – TO BE RECEIVED AND FILED
1. Minutes of the Regular Meeting of the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Vernon held September 3, 2015.
ACTION ITEMS
2. 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, 2016 through
June 30, 2017, and approving certain related actions pursuant to California Health
& Safety Code Sections 34177(l), 34177(m) and 34180(g).
Recommendation:
A. Find that adoption of the proposed resolution for approval of the Recognized Obligation
Payment Schedule for 2016-2017 (July 1, 2016 through June 30, 2017) is exempt under the
California Environmental Quality Act (“CEQA”), because it is a government fiscal activity that
will not result in any change to the environment and therefore is not a “project” as defined by
CEQA Guidelines section 15378. Even assuming the activity were a “project,” it would be
exempt from CEQA review in accordance with CEQA Guidelines section 15061(b)(3), the
general rule that CEQA only applies to projects that may have an effect on the environment; and
B. Successor Agency staff recommends the Oversight Board adopt a resolution to approve the
annual 2016-2017 recognized obligation payment schedule (“ROPS”) in substantially the same
form as presented and to authorize Successor Agency staff and special counsel to negotiate with
the Los Angeles County Auditor-Controller and Department of Finance to assure the provisions
of said resolution are appropriately effectuated.
ORAL REPORTS
3. Cancellation of the Regular Meeting scheduled to be held on February 4, 2016, at 4:00 p.m.
4. Brief reports on activities, other brief announcements, and directives to staff.
/ / /
/ / /
/ / /
/ / /
Oversight Board of the Successor Agency to the Redevelopment Agency
Special Meeting Agenda January 26, 2016
Page 3 of 3
ADJOURNMENT
Special Agenda Authorized by the Oversight Board of the Successor Agency to the Redevelopment Agency.
_________________________________
W. Michael McCormick, Chairperson
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 43 05 Santa Fe
Avenue, Vernon, California, on the City’s website, and at the teleconference location (3220 E Sierra Madre
Blvd., Pasadena, CA 91107) not less than 24 hours prior to the meeting set forth on this agenda. Dated this 21st
day of January, 2016.
By: ________________________________
Maria E. Ayala, 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, SEPTEMBER 3, 2015, 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,
and David Vela
MEMBERS ABSENT: Mary Gallagher
The meeting was called to order at 4:05 p.m. by Chairperson McCormick who also led the flag
salute.
CHANGES TO THE AGENDA
Chairperson McCormick 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 – TO BE RECEIVED AN FILED
1. Minutes of the Special Meeting of the Oversight Board of the Successor Agency to
the Redevelopment Agency of the City of Vernon held May 26, 2015.
It was moved by Fuhrman and seconded by Davis to approve the May 26, 2015 Minutes.
Motion carried, 4-0.
ACTION ITEMS
2. Resolution No. OB-40 - 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,
2016 through June 30, 2016, and approving certain related actions pursuant to
California Health & Safety Code Sections 34177(l), 34177(m) and 34180(g).
Recommendation:
A. Find that adoption of the proposed resolution for approval of the Recognized
Obligation Payment Schedule for 2015-2016 Period B (January 1, 2016 through
June 30, 2016) is exempt under the California Environmental Quality Act
(“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
B. Successor Agency staff recommends the Oversight Board adopt and approve the
resolution to approve the forward-looking recognized obligation payment
schedule (“ROPS”) substantially in the form as presented with the resolution.
Successor Agency Staff Alex Kung conducted the oral report on the proposed. In response to
Vice Chairperson Fuhrman, Kung reported on the continued need for Bond Logistics.
It was moved by Fuhrman and seconded by Davis to approve Resolution No. OB-40. Motion
carried, 4-0.
ORAL REPORTS
3. Brief reports on activities, other brief announcements, and directives to staff.
Oversight Board of the Successor Agency to the Redevelopment Agency
Regular Meeting Minutes
September 3, 2015
Page 2 of 2
Successor Agency Staff Alex provided an update on potential legislation that may impact the
redevelopment laws.
In response to Vice Chairperson Fuhrman, Kung provided an update on Wholefoods on the
Pacific Boulevard property, and transfer of the Bandini Boulevard property to the city. Kung
also reported on cash reserves, and on the bonds’ remaining balance.
With no further business, at 4:12 p.m., the meeting was adjourned.
________________________
W. Michael McCormick
Chairperson
ATTEST:
_________________________
Maria E. Ayala
Secretary
REGEE\4trD
JAN 2 I 2016
CITY CTERl('S OFFICE
STAFF REPORT
SUCCESSOR AGENCY FOR THE
FORMER VERNON REDEVELOPMENT AGENCY
RECEIVED
JAN 2 I 2016
CITY ADMINISTRATION
Nwf*
DATE:
TO:
F'ROM:
RE:
January 26, 2016
Honorable Chairperson and Members of the Oversight Board for the
Successor Agency
Originator: Alex Kung, Successor Agency Staff Alr-
Recognized Obligation Payment Schedule for 2016-2017 Annual (July l, 2016
through June 30, 2017)
Recommendation
A. Find that adoption ofthe proposed resolution for approval of the Recognized Obligation
Payment Schedule for 2016-2017 (July l, 2016 through June 30, 20t 7) is exempt under
the califomia Environmental Quality Act ("cEeA), because it is a govemment tiscal
activity that will not result in any change to the environment and therefore is not a"project" as defined by CEQA Guidelines section 1537g. Even assuming the activity
were a "project." it would be exempt from cEeA review in accordance with cEeA
Guidelines section 15061(b)(3), the general rule that cEeA only applies to projects that
may have an effect on the environment; and
B. Successor Agency staff recommends the oversight Board adopt a resolution to approve
the annual 2016-2017 recognized obligation payment schedule 1"ROPS") in substantially
the same lorm as presented and to authorize Successor Agency staff and special counsel
to negotiate with the Los Angeles County Auditor-Controller and Departmint of Finance
to assure the provisions of said resolution are appropriately effectuated.
Background
Pursuant to senate Bill 107, the Successor Agency will be submitting annual Recognized
obligation Payment Schedule (RopS) beginning with the fiscal year luty t, zoto through June
30,2017 by February l'r of each year. The ROFS was approved by the Successor Agency at its
Ianuary 19,2016 meeting. Previously, the oversight Boird was iequired to submit-its, Rops
for a six month period which will no longer be required.
Page I of2
Fiscal Impact
The Agency -is requesting $5,999,894 in Redevelopment property Tax monies from theDepartment ol Finance.
Attachment(s)
l) None
Page 2 of 2
RESOLUTTON NO. OB-
A RESOLUT]ON OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THECITY OF VERNON ADOPTING, APPROVING, AND RATIFYING
THE RECOGNTZED OBLTGATION PAYMENT SCHEDULE FOR THE
PERIOD JULY 1, 2016 THROUGH JUNE 30, 2O].7, AND
APPROVING CERTAIN RELATED ACTIONS PIJRSUANT TOCAIIFORNIA HEAITH & SAF'ETY CODE SECTIONS 34177(1) ,34)-77 (m) AND 34180 (g)
WHEREAS, on January 26, 20L6, the Oversight Board of the
Successor Agency t.o the Redevelopment Agency to t.he City of Vernon
( "oversight. Board" ) considered the adoption, approvar and rati_fication
of the Recognized obligation pa)rment schedure of the successor Agency
co the former vernon Redevelopment Agency for the reporting period of
,Ju1y 1, 2016 t.hrough ,fune 30, 2Ot7 ("ROPS" ) using the electronic_
version of tshe recognized obligation payment schedur.e provided to the
Successor Agency by the Department of Finance (,.Finance,,); and
WHEREAS, on lTanuary 2G, 20L6, the Oversight Board approved
t.he ROPS with the express authorization to a11ow staff of the
Successor Agency t.o the former Vernon RedeveLopment. Agency (.,Successor
Agency" ) to negotiate with the Los Anger-es county Audi tor- cont.rof 1er
to assure t.he prior period adjustments are accuratel,y ref lect.ed and
that there is sufficient funding appropriately set aside to sat.isfy
indebtedness of the former vernon Redeveropment Agency, including the
Series 2005 and 20L1 bonds,. and
WHEREAS, in furtherance of the foregoing recitals, t.he
Oversight. Board desires to adopt, approve, and ratify t.he ROPS
att.ached hereco and instruct staff and special counsel to the
Successor Agency t.o negot.iat.e with the Los Angeles County Audit.or_
Controller and Fj-nance, as and if appropriate, following the
,January 26, 201,6, meeting of the Oversight Board, Eo assure the goals
and desi-res of t.he oversight Board in this resolut.ion are carried out.
NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS
FOLLOWS:
SECTION 1: The Oversight Board of E.he Successor Agency to
the Redevelopment. Agency of the City of Vernon hereby finds and
determines that the above recitals are t.rue and correcE.
SECTION 2: The Oversight Board of t.he Successor Agency t.o
the Redevelopment Agency of the City of Vernon hereby adopts,
approves, and ratifies the ROPS, in the form at.tached to this
Resolution as Exhibit A. pursuant to cafifornia Heaft.h & safety code
sections 34777 (l), 34L77 (m) , and 34180(g) .
SECTION 3: pursuant to California Health & Safety Code
section 34L79(h), Finance may review an Oversight Board action. AIr
action of the oversight Board shall become effective five business days
after notice in the manner specified by Finance is provided unless
Finance requests review. The AssisE.ant Executive Director of the
Successor Agency, Mr. Alex Kung, c/o Vernon City HaIf, 4305 Sant.a Fe
Avenue. Vernon, CA 9OO5B Telephone (323) 583_8811 Extension 355
(akungoci.vernon.ca.us) is designated as the official for notice of
review by Finance. Except. as otherwise provided in Cafifornia Health &
safety Code section 34L79 (h), in the event Finance requests a review of
a given oversight board action, Finance shall have 40 days from the
date of this request. .o approve the oversight Board action or ret.urn it
to the oversight Board for recons iderat. ion; the oversight Board shafr_
resulcmit the modified action for Finance approvar- and the modified
oversight Board action shal] not become effective untif approved by
2
Finance .
SECTION 4: The Secretary of the Oversight Board, shall
certify Co t.he passage, approval and adoption of this resolution,
the Secretary shall- cause this resolution and the Secretary,s
certification to be properly fiIed.
APPROVED AND ADOPTED this 26rh day of January, 2016.
Name:
Tit.le: Chairman / yice Chairman
ATTEST :
3
STATE OF CAIIFORNTA )
corrNry oF Los ANGELE' I ""
I, Maria E. Ayala, acting on behalf of t.he Oversight Board as it.s
Secretary, do hereby certify that. the foregoing Resolution, being
ResoluEion No. OB- , was dufy passed, approved and adopted by the
oversight Board of the successor Agency to the Redever-opment Agency of
the City of Vernon at a special- meeting of the Oversight Board duly
held on Tuesday, Ja )ary 26, 20!6, and thereafter was duly signed by
t.he Chairman or Vice Chairman of the Oversight Board.
Executed thls _ day of January, 20f6, aE Vernon, Cal_ifornia.
Maria E. Aya1a, Secretary
(SEAL)
4
EXHIBIT A
Successor Agency:Vernon
County:Los Angeles
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 16-17A Total 16-17B Total
ROPS 16-17
Total
A -$ -$ -$
B - - -
C - - -
D - - -
E 4,416,897$ 1,581,797$ 5,998,694$
F 4,411,897 1,576,797 5,988,694
G 5,000 5,000 10,000
H Current Period Enforceable Obligations (A+E):4,416,897$ 1,581,797$ 5,998,694$
Name Title
/s/
Signature Date
Recognized Obligation Payment Schedule (ROPS 16-17) - Summary
Filed for the July 1, 2016 through June 30, 2017 Period
Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding
Sources (B+C+D):
Non-Administrative Costs
Enforceable Obligations Funded with RPTTF Funding (F+G):
Bond Proceeds Funding
Reserve Balance Funding
Other Funding
Administrative Costs
Certification of Oversight Board Chairman:
Pursuant to Section 34177 (o) of the Health and Safety code, I
hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named successor
agency.
A B C D E F G H I
Other RPTTF
Bonds issued on
or before
12/31/10
Bonds issued on
or after 01/01/11
Prior ROPS
period balances
and DDR RPTTF
balances
retained
Prior ROPS
RPTTF
distributed as
reserve for future
period(s)
Rent,
grants,
interest, etc.
Non-Admin
and
Admin
ROPS 15-16A Actuals (07/01/15 - 12/31/15)
1 Beginning Available Cash Balance (Actual 07/01/15)
4,233,254 5,334,611 12,148,867
2 Revenue/Income (Actual 12/31/15)
RPTTF amounts should tie to the ROPS 15-16A distribution from the
County Auditor-Controller during June 2015 25,826 -
3 Expenditures for ROPS 15-16A Enforceable Obligations (Actual
12/31/15)
2,520,272 1,759,050 15,314
4 Retention of Available Cash Balance (Actual 12/31/15)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
5 ROPS 15-16A RPTTF Balances Remaining
No entry required
6 Ending Actual Available Cash Balance
C to G = (1 + 2 - 3 - 4), H = (1 + 2 - 3 - 4 - 5) 1,712,982$ 3,575,561$ -$ -$ 12,174,693$ (15,314)$
ROPS 15-16B Estimate (01/01/16 - 06/30/16)
7 Beginning Available Cash Balance (Actual 01/01/16)
(C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6)1,712,982$ 3,575,561$ -$ -$ 12,174,693$ (15,314)$
8 Revenue/Income (Estimate 06/30/16)
RPTTF amounts should tie to the ROPS 15-16B distribution from the
County Auditor-Controller during January 2016 5,998,694
9 Expenditures for ROPS 15-16B Enforceable Obligations (Estimate
06/30/16)3,521,944 2,434,750 42,000
10 Retention of Available Cash Balance (Estimate 06/30/16)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10)(1,808,962)$ 1,140,811$ -$ -$ 12,174,693$ 5,941,380$
Vernon Recognized Obligation Payment Schedule (ROPS 16-17) - Report of Cash Balances
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available
or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see CASH BALANCE TIPS SHEET
Fund Sources
Comments
Bond Proceeds Reserve Balance
Cash Balance Information by ROPS Period
A B C D E F G H I J K L M N O P Q R S T U V W
Bond Proceeds Reserve Balance Other Funds Non-Admin Admin Bond Proceeds Reserve Balance Other Funds Non-Admin Admin
$ - $ 5,998,694 $ - $ - $ - $ 4,411,897 $ 5,000 $ 4,416,897 $ - $ - $ - $ 1,576,797 $ 5,000 $ 1,581,797
1 Industrial RP - Acct. #276.02 & 99 Fees 2/1/2012 6/30/2018 Bank of New York - Trustee Banking Fees N $ 6,000 3,000 $ 3,000 3,000 $ 3,000
2 Industrial RP - Acct. #276.02 & 99
ANX - Acct. #276.03
Property Maintenance 2/1/2012 6/30/2018 LA County Assessor's Office Property Tax on properties owned by
RDA
Y $ - $ - $ -
3 Industrial RP - Acct. #276.02 & 99
ANX - Acct. #276.03
Bonds Issued On or Before
12/31/10
9/21/2005 9/1/2035 Bank of New York-Trustee Series 2005 Principal and/or Interest on
Bonds
N $ 3,521,944 2,592,272 $ 2,592,272 929,672 $ 929,672
4 Industrial RP - Acct. #276.02 & 99
ANX - Acct. #276.03
Bonds Issued After 12/31/10 2/15/2011 9/1/2030 Bank of New York-Trustee Series 2011 Principal and/or Interest on
Bonds
N $ 2,434,750 1,809,625 $ 1,809,625 625,125 $ 625,125
11 Industrial RP - Acct. #276.02 & 99
ANX - Acct. #276.03
Property Dispositions 1/1/2014 6/30/2014 City of Vernon 10% & 20% of City Staff time and
supplies to wind down RDA and outside
counsel legal fees
N $ 10,000 5,000 $ 5,000 5,000 $ 5,000
12 Industrial RP - Acct. #276.02 & 99
ANX - Acct. #276.03
Fees 1/1/2014 6/30/2014 Bond Logistix Quarterly Investment Service Fee N $ 26,000 7,000 $ 7,000 19,000 $ 19,000
29 N $ - $ - $ -
RPTTF
Non-Redevelopment Property Tax Trust Fund
(Non-RPTTF)
Contract/Agreement
Termination Date
ROPS 16-17
Total
16-17B
Non-Redevelopment Property Tax Trust Fund
(Non-RPTTF) RPTTF
16-17A
Total
Vernon Recognized Obligation Payment Schedule (ROPS 16-17) - ROPS Detail
July 1, 2016 through June 30, 2017
(Report Amounts in Whole Dollars)
Item #Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired
16-17A
16-17B
Total Project Name/Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Item #Notes/Comments
Cash Balance is off $13,766 due to an accural of $7,000 for BLX investment fee and a posting error for $6,766 for bank fees that the Finance Department is
correcting.
Vernon Recognized Obligation Payment Schedule (ROPS 16-17) - Notes July 1, 2016 through June 30, 2017
NOTICE OF CANCELLATION
FOR THE REGULAR MEETING OF THE OVERSIGHT
BOARD OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
FEBRUARY 4, 2016
NOTICE IS HEREBY GIVEN that the Regular Meeting of the Oversight Board of the
Successor Agency to the Redevelopment Agency of the City of Vernon scheduled to be
held February 4, 2016, at 4:00 p.m. is cancelled. Future meetings will be properly
noticed according to the requirements of the Ralph M. Brown Act.
________________________________
Maria E. Ayala
City Clerk
Dated and Posted: January 21, 2016
AFFIDAVIT OF POSTING
NOTICE OF CANCELLATION
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Maria E. Ayala, declare as follows:
That I am the City Clerk of the City of Vernon and that a copy of said notice of
cancellation, as set forth above, was posted at a conspicuous place, the bulletin board
located at the main entrance of the City Hall, and on the City’s website.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on January 21, 2016, at Vernon, California.
____________________________
Maria E. Ayala
City Clerk