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2018-01-24 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 Wednesday, January 24, 2018, 11:00 a.m. Council Chamber, City Hall 4305 Santa Fe Avenue Vernon, California Jonathan S. Fuhrman, Chairperson William J. Davis, Board Member Mary Gallagher, Board Member David Vela, Board Member Kelly Nguyen, 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. MINUTES – TO BE RECEIVED AND 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 January 19, 2017 2. Minutes of the Special Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held May 16, 2017 Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Agenda January 24, 2018 Page 2 of 2 ACTION ITEMS 3. A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon approving the Recognized Obligation Payment Schedule for the period July 1, 2018 through June 30, 2019, 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 2018-2019 (July 1, 2018 through June 30, 2019) 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. Adopt a resolution to approve the 2018-2019 annual Recognized Obligation Payment Schedule (“ROPS”) in substantially the same form as presented herewith; and C. Authorize Successor Agency staff, City Attorney, 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 4. Cancellation of the Regular Meeting scheduled to be held on February 6, 2018, at 4:00 p.m. 5. Brief reports on activities, other brief announcements, and directives to staff. 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, on the City’s website not less than 24 hours prior to the meeting set forth on this agenda. Dated this 22nd day of January, 2018. By: ________________________________ Maria E. Ayala, Secretary MINUTES OF THE SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON HELD TUESDAY, JANUARY 19, 2017, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Jonathan S. Fuhrman, David Vela, William J. Davis, Mary Gallagher, and Kelly Nguyen MEMBERS ABSENT: None The meeting was called to order at 4:02 p.m. by Vice Chairperson Fuhrman who also led the flag salute. CHANGES TO THE AGENDA Deputy City Clerk Matthew Ceballos announced that there are no changes to the agenda. PUBLIC COMMENT Vice Chairperson Fuhrman announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Board. ELECTION 1. Election of Chair to serve until the next election Recommendation: A. Find Find that election of chairperson and vice chairperson does not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because it constitutes an administrative activity that will not result in direct or indirect physical changes to the environment; and even if the adoption of the proposed resolution 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 B. Elect one of its members as Chair. Member Davis nominated Vice Chairperson Fuhrman for Chair, it was seconded by Member Vela. Motion carried 4-0. Fuhrman: Yes Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Minutes January 19, 2017 Page 2 of 5 Vela: Yes Davis: Yes Gallagher: Absent Kelly Nguyen: Yes MINUTES – TO BE RECEIVED AND FILED 2. Minutes of the Special Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held January 26, 2016 It was moved by Davis and seconded by Nguyen to approve Minutes of the Special Meeting of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon held January 26, 2016. Motion carried, 4-0. Fuhrman: Yes Vela: Yes Davis: Yes Gallagher: Absent Kelly Nguyen: Yes ACTION ITEMS 3. Resolution No. OB-42 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon, approving an agreement regarding Expenditure of Excess Bond Proceeds between the Successor Agency and the City of Vernon [2005 Tax Allocation Bonds] Recommendation: A. Find that adoption of the proposed resolution for approval of the Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] 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. Adopt a resolution to approve an Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds], in substantially the same form as presented herewith. Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Minutes January 19, 2017 Page 3 of 5 C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps to assure the provisions of said resolution are appropriately effectuated. Finance Director William Fox introduced Iris Yang, the outside consultant for the Successor Agency. Ms. Yang reported on the proposed. A lengthy dialogue ensued between the Oversight Board and the Successor Agency staff about the excess bond proceeds, the bond covenant, the properties sold, the properties history, ROPS obligation, issues if the bond proceeds weren’t spent by the City, and how the funds need to be spent. At 4:23 p.m. Member Gallagher joined the meeting. Chair Fuhrman gave a recap of the history of the bond excess and the proposed item. The dialogue transitioned to a lengthy conversation about the cause and effect if the bond proceeds were either spent or not by the City. Director Fox went through the projects the funds would be spent on if approved. Further discussion ensued about the proposed item. It was moved by Davis and seconded by Nguyen to approve Resolution No. OB-42. Motion carried, 4-1. Fuhrman: No Vela: Yes Davis: Yes Gallagher: Yes Nguyen: Yes 4. Resolution No. OB-43 - 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, 2017 through June 30, 2018, 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 2017-2018 (July 1, 2017 through June 30, 2018) Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Minutes January 19, 2017 Page 4 of 5 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. Adopt a resolution to approve the 2017-2018 annual Recognized Obligation Payment Schedule (“ROPS”) in substantially the same form as presented herewith. C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps to assure the provisions of said resolution are appropriately effectuated. Director Fox reported on the proposed. A dialogue ensued between the staff and board concerning the legal advice given to the agencies and the details of the payment schedule. It was moved by Gallagher and seconded by Davis to approve Resolution No. OB-43. Motion carried, 5-0. Fuhrman: Yes Vela: Yes Davis: Yes Gallagher: Yes Nguyen: Yes ORAL REPORTS 5. Cancellation of the Regular Meeting scheduled to be held on February 2, 2017, at 4:00 p.m. 6. Brief reports on activities, other brief announcements, and directives to staff. With no further business, at 4:50 p.m., the meeting was adjourned by Chair Fuhrman. / / / / / / / / / Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Minutes January 19, 2017 Page 5 of 5 ________________________ Jonathan S. Fuhrman Chairperson ATTEST: _________________________ Maria E. Ayala Secretary MINUTES OF THE SPECIAL MEETING OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON HELD TUESDAY, MAY 16, 2017, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Jonathan S. Fuhrman, David Vela, William J. Davis, and Kelly Nguyen MEMBERS ABSENT: Mary Gallagher The meeting was called to order at 1:01 p.m. by Vice Chairperson Fuhrman who also led the flag salute. CHANGES TO THE AGENDA Deputy City Clerk Matthew Ceballos announced that there are no changes to the agenda. PUBLIC COMMENT Chairperson Fuhrman announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Board. ACTION ITEMS 1. Resolution No. OB-44 - A Resolution of the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Vernon, approving an agreement regarding expenditure of excess bond proceeds between the Successor Agency and the City of Vernon [2005 Tax Allocation Bonds] Recommendation: A. Find that adoption of the proposed resolution for approval of the Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds] 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. Adopt a resolution to approve an Agreement Regarding Expenditure of Excess Bond Proceeds [2005 Tax Allocation Bonds]; and Oversight Board of the Successor Agency to the Redevelopment Agency Special Meeting Minutes May 16, 2017 Page 2 of 2 C. Authorize Successor Agency staff, City Attorney and special counsel to take any necessary steps to assure the provisions of said resolution are appropriately effectuated. Assistant Finance Director Misaim Higa and Outside Bond Counsel Iris Yang reported on the proposed. A lengthy dialogue ensued between staff and the board regarding the amount of funds to be transferred over to the City, and the spending of the bond proceeds. It was moved by Davis and seconded by Nguyen to Resolution No. OB-44. Motion carried, 4-0. Fuhrman: Yes Vela: Yes Davis: Yes Gallagher: Absent Nguyen: Yes ORAL REPORTS 2. Brief reports on activities, other brief announcements, and directives to staff. Chair Fuhrman inquired about the necessity of this board for the remaining year. Assistant Director Higa explained a plan to introduce a final ROPS that would negate the nessity for Oversight Board meetings. With no further business, at 1:17 p.m., the meeting was adjourned by Chair Fuhrman. ________________________ Jonathan S. Fuhrman Chairperson ATTEST: _________________________ Maria E. Ayala Secretary RECEIVED JAN I8 2OI8 CIIYCI.ERl('SOFFICE tRE,e '='1\, JAi: I I 2018 CITY AD IYI I It I STRATI()NSTAFF REPORT SUCCESSOR AGENCY FOR THE gft 1-rt-tr FORMER VERNON REDEVELOPMENT AGENCY DATE: TO: FROM: RE:A Resolution to Approve the Annual Recognized Obligation Payment Schedule for 2018-2019 (July l,20t8 through June 30,2019) Recommendation A. Find that adoption of the proposed resolution for approval of the Recognized Obligation Payment Schedule for 2018-2019 (July l, 2018 through June 30,2Ol9) is exempt under the Califomia Environmental Quality Act C'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. Adopt a resolution to approve the 2018-2019 annual Recognized Obligation Payment Schedule ("ROPS") in substantially the same form as presented herewith; and C. Authorize Successor Agency staff, City Attorney, and special counsel to negotiate with the [,os Angeles County Auditor-Controller and Department of Finance to assure the provisions of said resolution are appropriately effectuated. Backsround Pursuant to Senate Bill 107, the Successor Agency must submit an annual Recognized Obligation Payment Schedule by February l'r of each year to the Los Angeles County Auditor- Controller and Califomia Department of Finance. Attached for the Oversight Board's approval is the ROPS for fiscal year July l, 2018 through June 30, 2019. The ROPS was approved by the Successor Agency at its January 18,2018 meeting. January 24,2018 Honorable Chairperson and Members Successor Agency of the Oversight Board for the William Fox, Successor Agency Staff Member NT 6;;il;,;.", il,.ffi ffi:;'.i#i .*,"I"''r'."",". t' t,l. Page I of2 Fiscal Impact The Agency is requesting $5,7 44,361 in Redevelopment Property Tax monies from the Department of Finance. Attachment l) Resolution Approving the 2018-2019 Annual ROPS Schedule Page 2 of 2 RESOLUTION NO. OB- A RESOLUTTON OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMEIiII| AGENCY OF THE CITY OF VERNON APPROVING THE RECOGNIZED OBLIGATTON PAYMEIiIT SCHEDIJLE FOR THE PERIOD .fULY 1 , 2 018 THROUGH .fIJNE 30, 2019, AND APPROVING CERTATN REI,ATED ACTIONS PI'RSUANT TO CAII FORNIA HEALTH & SAFETY CODE SECTIONS 341?7 (l) , 341-77 (m) AND 3418 0 (S) WHEREAS, on January 24, 20]-8, the Oversight Board of t.he Successor Agency tso the Redevelopments Agency to the City of Vernon ("Oversight Board" ) considered the approval- of the Recognized obligation Palment Schedule of Ehe Successor Agency to the former Vernon Redevelopment Agency for t.he reporcing period of .Iu1y f, 2Ol8 through June 30, 201-9, ("RoPs" ) using Ehe el-ectronic -vers ion of the recognized obligation payment schedule provided tso the Successor Agency by Ehe Department. of Finance ("Finance" ) ; and WHEREAS, on ,January 24, 20L8, Ehe Oversight Board approved Ehe ROPS wiEh Ehe express authorization to a1low staff of the Successor Agency to the former vernon Redevelopment Agency ( "Successor Agency" ) to Eake any sEeps necessary Eo ensure that tshe prior period adjust.ments are accuraEely reflected and that chere is sufficient funding allocated to make payments on the enforceable obligations of t.he former vernon RedevelopmenE. Agency, including the series 2005 and 2 0l-l- bonds ; and WHEREAS, in furtherance of the foregoing recitals, lhe Oversight Board desires t.o approve the ROPS att.ached hereto and instruct. st.af f and special counsel Eo Ehe Successor Agency to negoEiaE.e with the Los Angeles County Auditor-Controller and Finance, as and if appropriatse, following t.he January 24, 20f8, special meeting of the Oversight Board, Eo assure Ehe goals and desires of the Oversight Board in t.his resolution 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 the Successor Agency t.o the RedeveLopment Agency of t.he City of Vernon hereby finds and det.ermines thats tshe above recit.als are true and correcE. SECTION 2: The OversighE Board of the Successor Agency to Ehe Redevelopment Agency of Ehe CiEy of Vernon hereby finds thac this aclion is exempt under the California EnvironmenEal Quality Act ("CEQA") because it is a government fiscal activity that will not resul-t in any change to the environment and, therefore, is not. a "project" as defined by CEoA Guidelines Section 15378. Even assuming the activity were a "project", it would be exempt from CEoA review in accordance with CEQA Guidelines SecEion 15051(b) (3), Ehe general rule chac CEQA only applies to projecEs t.hat. may have an effect on the environment. SECTfON 3: The Oversight Board of the Successor Agency to t.he Redevelopment Agency of the City of Vernon hereby approves the ROPS, in che form attached to this Resolution as Exhibit A, pursuant to California Health & Safety Code sections 34177 (Il , 3 4'J.7 7 (m), and 34180 (S) . SECTION 4: Pursuant to California Health & Safety Code section 34179(h), Finance may review an Oversight Board action. An action of Che Oversight. Board shaII become effective five business days after notice in the manner specified by Finance is provided unless Finance request.s review. Successor Agency st.af f member, William Fox, 2 c/o vernon city Halt, 4305 sant.a Fe Avenue, vernolr, cA goo58 Terephone (323) 583-8811 Ext,enEion 849 (wfox@ci.vernon.ca.us) ie deeigrnaE,ed aB the official for notice of revi.ew by pinance. Except ae otherwiee provided in california Hearth & safeEy code sect,ion 341?9 (h) , in the event Finance requeBts a revlew of a given overaight board action, Finance eharr have 40 day. from the date of this reque.t Eo approve the OvergighE Board acE,ion or return it to Ehe Over8ight Board for reconBiderat ion i the overeight Board aharl resubmit. the modified act.ion for Finance approvar and the modified overaight Board action sharr noE become effective unEil approved by Finance. SECTION 5: The SecreE.ary of E.he Overeight. Board, aha1l certify to the paEsage, approval and adoption of thie regoluEion, and the Secretary ehall cauee E.hie resolut,ion and Ehe Secretary, E certification t.o be properly fiIed. APPROVED AND ADOPTBD t,hie 24rh day of January, 201g. Name: Tlt.le: Chairman / Vice Chalrman ATTEST: t'tar@ APPROVED AS TO FORM: Iris Yang, EBq. BoardSpecial Counsel to the Overeight -3- Best Beat. & Kriege STATE OF CAII FORNIA COI]NTY OF LOS ANGELES I, Maria E. Ayala, acting on behal-f of the Oversight Board as its SecreEary, do hereby certify that the foregoing Resolution, being ResoluE.ion No. OB- , was duly passed, approved and adopted by the Oversight. Board of lhe Successor Agency t.o Ehe Redevelopment Agency of Ehe CiEy of Vernon a! a special meeting of the Oversight Board duly held on wednesday, Jar]lrary 24, 20L8, and thereafter was duly signed by the Chairman or Vice Chairman of t.he Oversight Board. Executed this day of January, 201-8, at Vernon, California. Maria E. Ayal-a, secretsary (SEAL) -4- EXHIBIT A @(r- otolt- F {_ ro- (ocr- Tt-d F.@- + (ooo, o(!oF @{@F(, tic! .@ F@_ s o(ao- (o-ro ot@o,@-qra) !?c.,t oo '.t6@- N oo- @@- N o -q F o E z C'' @- CD.(,)N o f cIa o;&hBAR;gq.9 t ,,,3*E (!Ec -5'9 E$ H€Eige ;: r: ;*:5 =!-69,-si I B .t:6e o (/) .>.!! aE h c6E d.S.9 E >ti h =;+i s,- sdES $ :L UJ+ E .9 o cD .Elo -9ltl!o ot UJEo a,C o - 6+tr- ILFFo. 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