Oversight Board Meeting

OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY REGULAR MEETING AGENDA January 19, 2022 @ 2:00 p.m. Virtual meeting via Zoom Crescent City, California 95531 Meeting ID: 317 795 1997 Passcode: 01182022 Phone Number: (253) 215-8782 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC COMMENT PERIOD CONSENT CALENDAR 1.A pproval of Minutes • Recommendation: Approve minutes from the January 20, 2021 special meeting of the Oversight Board (Secretary to the Board) NEW BUSINESS 2. Approval of a Recognized Obligation Payment Schedule Pursuant to Health and Safety Code Section 34177(1) for the Period July 1, 2022 through June 30, 2023 • Recommendation: Hear staff report • Receive public comment • Adopt Resolution OB2022-01, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) FOR THE PERIOD JULY 1, 2022 THROUGH JUNE 30, 2023. ➢ Finance Director Report – brief update from the Finance Director on matters pertaining to the Oversight Board. ADJOURNMENT Adjourn to the next scheduled meeting on July 20, 2022 at 2:00 p.m. held virtually via Zoom meetings, Crescent City, CA 95531 POSTED: January 13, 2022 /s/ Robin Patch, Secretary to the Board  OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY SPECIAL MEETING MINUTES January 20, 2021 @ 2:00 p.m. Virtual meeting via Zoom Crescent City, California 95531 CALL TO ORDER, PLEDGE OF ALLEGIANCE AND ROLL CALL Board Member Greenough called the meeting to order at 2:09 pm as Vice Chair Harris was unable to attend due to an emergency. Board Members present: Board Member Erica Barber, Board Member Jason Greenough, Board Member Chris Howard, Board Member Brett Stone, and Board Member Eric Wier Board Member absent: Vice Chair Harris Also present: Finance Director Leaver and Board Secretary Patch PUBLIC COMMENT PERIOD There were no public comments. CONSENT CALENDAR 1. Approval of Minutes • Recommendation: Approve minutes from the January 15, 2020 special meeting of the Oversight Board (Secretary to the Board) On a motion by Board Member Wier, seconded by Board Member Howard and carried unanimously on a 4-0 polled vote with Vice Chair Harris being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City approved the minutes from the January 15, 2020 special meeting of the Oversight Board. NEW BUSINESS 2. Appointment of Chairperson and Vice-Chairperson • Recommendation: Nominate Chairperson and then Vice-Chairperson for the Oversight Board of the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City On a motion by Board Member Wier, seconded by Board Member Howard and carried on a 4-0 polled vote with Vice Chair Harris being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City nominated Board Member Greenough as Chairperson. On a motion by Board Member Howard, seconded by Board Member Wier and carried Oversight Board Minutes January 20, 2021 on a 4-0 polled vote with Vice Chair Harris being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City nominated Board Member Harris as Vice Chairperson. 3. Resolution No. OB2021-01 APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1) FOR THE PERIOD JULY 1, 2021 THROUGH JUNE 30, 2022 • Recommendation: Hear staff report • Receive public comment • Adopt Resolution OB2021-01, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) FOR THE PERIOD July 1, 2021 through June 30, 2022. Finance Director Leaver gave an overview of what the Oversight Board function is in regards to the dissolution of the Successor Agency to the RDA of the City of Crescent City as it closes out items from the RDA. Each taxing agency affected by the taxing RDA is represented on the Board as Board Members. The 2020/21 loan payment will pay off the SERAF loan. On a motion by Board Member Howard, seconded by Board Member Barber and carried on a 4-0 polled vote with Vice Chair Harris being absent, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City adopted Resolution OB2021-01, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) FOR THE PERIOD July 1, 2021 through June 30, 2022. Due to technical difficulties, Board Member Stone had left the meeting and was unable to take the polled vote, however was present for the discussion and motion. ➢ Finance Director Report – brief update from the Finance Director on matters pertaining to the Oversight Board. ADJOURNMENT There being no further business to come before the Oversight Board, Chair Greenough adjourned the meeting at 2:21 pm to the next scheduled meeting on January 19, 2022 at 2:00 p.m. held virtually via Zoom meetings, Crescent City, CA 95531 ATTEST: ______________________________ Robin Patch, Secretary to the Board 2  OVERSIGHT BOARD AGENDA REPORT TO: CHAIR GREENOUGH AND MEMBERS OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY FROM: LINDA LEAVER, FINANCE DIRECTOR (CITY OF CRESCENT CITY) DATE: JANUARY 19, 2022 SUBJECT: APPROVAL OF A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) FOR THE PERIOD JULY 1, 2022 THROUGH JUNE 30, 2023 RECOMMENDATION • Consider and adopt Resolution OB2022-01 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD JULY 1, 2022 THROUGH JUNE 30, 2023 BACKGROUND Pursuant to Health and Safety Code Section 34172, the Redevelopment Agency of the City of Crescent City was dissolved as of February 1, 2012. The City of Crescent City (“RDA Successor Agency”) is the successor agency of the Redevelopment Agency, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is now a separate legal entity from the City. The sole purpose of the Successor Agency is to wind down (close out) the affairs of the former RDA. This involves disposing of all assets and paying off all enforceable obligations. The Successor Agency has sold or transferred all real property owned by the former RDA in accordance with the Long Range Property Management Plan, and all outstanding notes receivable have been collected and disbursed to the taxing entities as required by State regulation. The only remaining business of the Successor Agency is to pay off the enforceable obligations, of which only one remains outstanding (Water Fund loan). These obligations are paid off over time, through the annual approval of a Recognized Obligation Payment Schedule (ROPS). Through the ROPS process, the Successor Agency estimates its own resources available (if any) to pay the obligations and requests additional funding as needed. The total amount the Successor Agency is allowed to pay out each year is based on a formula and the Oversight Board Staff Report ROPS 22-23 January 19, 2022 actual amount changes from year to year. The Successor Agency utilizes the maximum amount allowed under the formula to make payments on the outstanding loans. The Oversight Board is responsible for approving the actions of the RDA Successor Agency pursuant to Health and Safety Code Section 34179, including approval of the ROPS each year. The Successor Agency reviewed and approved the attached ROPS at its January 10, 2021 meeting. After the Successor Agency approves the ROPS, the Oversight Board must review and approve the ROPS before it is submitted to the State Department of Finance and the County Auditor. The ROPS must be submitted by February 1, 2022. ANALYSIS Attached is the ROPS for the period July 1, 2022 through June 30, 2023. It is organized into the following sections as required by the California Department of Finance: Recognized Obligation Payment Schedule (ROPS 22-23) – Summary and Detail This report shows the estimated amounts to be expended and the funding source for those amounts. The Successor Agency has two potential sources of funding to make payments on recognized obligations and to cover administrative costs: • Existing assets / fund balance • Redevelopment Property Tax Trust Fund (RPTTF) Of these amounts, the Successor Agency is required to use its assets first and then may apply for RPTTF to cover any shortfall to make approved payments toward recognized obligations. RPTTF is collected by the County and distributed to taxing entities pursuant to Health and Safety Code Section 34183. The remaining amount (called the residual) is potentially available to fund Successor Agency obligations. However, the Successor Agency may only request up to 50% of the difference between the projected residual and the actual residual from the base year 2012-13. The ROPS 22-23 is based on prior year actual amounts and a projection for the current year. If the actual current year amounts differ from the projection, the State Department of Finance will adjust the ROPS amount. If the State adjusts the ROPS amounts, the Successor Agency will adjust the payment accordingly and no additional action is required from the Successor Agency or the Oversight Board. The proposed ROPS 22-23 estimates $150,000 will be available to make recognized obligation payments plus a request of $5,000 for admin costs, for a total ROPS of $155,000. Of this amount, $63,000 is estimated to come from existing assets of the Successor Agency and $92,000 is requested from RPTTF. 2 Oversight Board Staff Report ROPS 22-23 January 19, 2022 Under AB 1484, the outstanding SERAF loan was required to be paid before the Water Fund loan. The SERAF loan will be paid off in the current fiscal year, so the only remaining obligation for 2022-23 will be the Water Fund loan The amount available to make payments on the Successor Agency’s obligations changes each year due to the calculation of residual RPTTF. Cash Balance Report The Report of Cash Balances tracks Successor Agency cash flow and ending balances across several ROPS periods. This form helps provide transparency over the continual estimation and tax distribution true-up processes embedded in the State dissolution law. FISCAL IMPACT The ROPS 22-23 would authorize the Successor Agency to use $63,000 of its assets and reqeust $92,000 in RPTTF funds (total $155,000) for a loan payment of $150,000 plus $5,000 for administrative costs. This is in accordance with the purpose of the Successor Agency, which is to wind down the affairs of the former Redevelopment Agency and pay its enforceable obligations. Due to the timing of when final RPTTF information is available compared to the deadline for ROPS submission, the amounts provided are based on estimates only. If necessary, the DOF will make adjustments to the ROPS when final RPTTF amounts are known. ATTACHMENTS • Resolution No. OB2022-01 • ROPS 22-23 3  OVERSIGHT BOARD RESOLUTION NO. OB2022-01 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Crescent City (“RDA Successor Agency”) is the successor agency to the dissolved Redevelopment Agency of the City of Crescent City (“Agency”), confirmed by Resolution No. 2012-03 adopted on January 17, 2012, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is now a separate legal entity from the City; and WHEREAS, Health and Safety Code Section 34179(a) provides that each successor agency shall have an Oversight Board composed of seven members; and WHEREAS, the Oversight Board is the RDA Successor Agency’s oversight board pursuant to Health and Safety Code Section 34179(a); and WHEREAS, Health and Safety Code Section 34177 requires the RDA Successor Agency to prepare a “recognized obligation payment schedule” (“ROPS 22-23”) for the period of July 1, 2022 through June 30, 2023, listing outstanding obligations of the Agency to be performed by the RDA Successor Agency; and WHEREAS, Health and Safety Code Section 34177(l)(2) requires the RDA Successor Agency to submit the ROPS to the California Department of Finance (DOF), State Controller’s Office and County of Del Norte Auditor-Controller; and WHEREAS, Health and Safety Code Section 34180(g) requires the Oversight Board to approve the RDA Successor Agency’s establishment of the ROPS; and WHEREAS, Health and Safety Code Section 34177(m) requires that the ROPS 22-23 must be submitted to the DOF and the County Auditor-Controller by February 1, 2022, and the DOF shall make its determination of the enforceable obligations and the amounts and funding sources of the enforceable obligations no later than April 15, 2022; NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. CEQA Compliance. The approval of the ROPS 22-23 through this Resolution does not commit the Oversight Board to any action that may have a significant Oversight Board Resolution No. OB2022-01 effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. SECTION 3. Approval of the ROPS. The Oversight Board hereby approves and adopts the ROPS 22-23, in substantially the form attached to this Resolution as Exhibit A, pursuant to Health and Safety Code Section 34177. SECTION 4. Implementation. The Oversight Board hereby directs the RDA Successor Agency to submit copies of the ROPS approved by the Oversight Board to the County of Del Norte Auditor-Controller, the State of California Controller and the State of California Department of Finance after the effective date of this Resolution and by no later than February 1, 2022, and to post the ROPS on the RDA Successor Agency’s website. SECTION 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board declares that the Oversight Board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. SECTION 6. Certification. The City Clerk of the City of Crescent City, acting on behalf of the Oversight Board as its Secretary, shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Oversight Board of the Successor Agency to the dissolved Redevelopment Agency of the City of Crescent City this 19th day of January 2022, by the following vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Jason Greenough, Chairperson ATTEST: _______________________________ Robin Patch, Secretary to the Board Page 2 Oversight Board Resolution No. OB2022-01 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 22-23 [Attached behind this page]  Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: Crescent City County: Del Norte 22-23A Total 22-23B Total Current Period Requested Funding for Enforceable ROPS 22-23 (July - (January - Obligations (ROPS Detail) Total December) June) A Enforceable Obligations Funded as Follows (B+C+D) $ 63,000 $ - $ 63,000 B Bond Proceeds - - - C Reserve Balance - - - D Other Funds 63,000 - 63,000 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 89,500 $ 2,500 $ 92,000 F RPTTF 89,500 2,500 92,000 G Administrative RPTTF - - - H Current Period Enforceable Obligations (A+E) $ 152,500 $ 2,500 $ 155,000 Certification of Oversight Board Chairman: Name Title 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. /s/ Signature Date  Crescent City Recognized Obligation Payment Schedule (ROPS 22-23) - ROPS Detail July 1, 2022 through June 30, 2023 A B C D E F G H I J K L M N O P Q R S T U V W ROPS 22-23A (Jul - Dec) ROPS 22-23B (Jan - Jun) Agreement Agreement Total ROPS Item Obligation Project Fund Sources 22-23A Fund Sources 22-23B Project Name Execution Termination Payee Description Outstanding Retired 22-23 # Type Area Bond Reserve Other Admin Total Bond Reserve Other Admin Total Date Date Obligation Total RPTTF RPTTF Proceeds Balance Funds RPTTF Proceeds Balance Funds RPTTF $766,084 $155,000 $- $- $63,000 $89,500 $- $152,500 $- $- $- $2,500 $- $2,500 1 Water Fund City/County 01/01/ 06/30/2032 City of Debt to fund RDA 1 716,084 N $150,000 - - 63,000 87,000 - $150,000 - - - - - $- Loan * Loan (Prior 1996 Crescent non-housing &2 06/28/11), City Water projects Other Utility 5 SERAF 2010 SERAF/ERAF 03/01/ 06/30/2032 Crescent repayment of RDA 1 - Y $- - - - - - $- - - - - - $- repayment * 2010 City RDA SERAF &2 set-aside payment borrowed 7 Administrative Admin Costs 07/01/ 06/30/2030 City of Administrative RDA 50,000 N $5,000 - - - 2,500 - $2,500 - - - 2,500 - $2,500 allowance 2016 Crescent allowance 1&2 City  Crescent City Recognized Obligation Payment Schedule (ROPS 22-23) - Report of Cash Balances July 1, 2019 through June 30, 2020 (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. A B C D E F G H Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Prior ROPS ROPS 19-20 Cash Balances RPTTF and Bonds issued Bonds issued Comments (07/01/19 - 06/30/20) Reserve Rent, grants, Non-Admin on or before on or after Balances retained interest, etc. and Admin 12/31/10 01/01/11 for future period(s) 1 Beginning Available Cash Balance (Actual 07/01/19) - - - 110,751 - Amount reported on the 2020-21 ROPS of RPTTF amount should exclude "A" period distribution $99,531 adjusted to reflect ledger balance amount. 2 Revenue/Income (Actual 06/30/20) 2,361 28,098 RPTTF amount should tie to the ROPS 19-20 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 19-20 Enforceable Obligations 18,236 26,224 (Actual 06/30/20) 4 Retention of Available Cash Balance (Actual 06/30/20) 29,000 Amount of balance used in 21-22 RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 19-20 RPTTF Prior Period Adjustment 1,874 No entry required RPTTF amount should tie to the Agency's ROPS 19-20 PPA form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/20) $- $- $- $65,876 $- C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)  Crescent City Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023 Item # Notes/Comments 1 5 7