Oversight Board of the Successor Agency to the Redevelopment Agency of Crescent City

OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY SPECIAL MEETING AGENDA January 20, 2021 @ 2:00 p.m. Virtual meeting via Zoom Crescent City, California 95531 CALL TO ORDER, PLEDGE OF ALLEGIANCE AND ROLL CALL PUBLIC COMMENT PERIOD CONSENT CALENDAR 1. Approval of Minutes • Recommendation: Approve minutes from the January 15, 2020 special meeting of the Oversight Board (Secretary to the 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 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 Report – brief update from the Finance Director on matters pertaining to the Oversight Board. ADJOURNMENT Adjourn to the next scheduled meeting on January 19, 2022 at 2:00 p.m. held virtually via Zoom meetings, Crescent City, CA 95531 POSTED: January 14, 2021 /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 15, 2020 @ 2:00 p.m. Wastewater Treatment Facility Conference Room 210 Battery Street, Crescent City, California 95531 CALL TO ORDER, PLEDGE OF ALLEGIANCE AND ROLL CALL Chairman Inscore called the meeting to order at 2:05pm and led the Pledge of Allegiance. Board Members present: Board Member Ericka Barber, Board Member Chris Howard, Board Member Brian Stone, Board Member Eric Wier, Vice-Chair Jeff Harris and Chairman Blake Inscore PUBLIC COMMENT PERIOD CONSENT CALENDAR 1. Approval of Minutes • Recommendation: Approve minutes from the January 23, 2019 special meeting of the Oversight Board (Secretary to the Board) On a motion by Board Member Barber, seconded by Board Member Howard and carried unanimously on a 6-0 polled vote, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City approved the minutes from the January 23, 2019 special meeting of the Oversight Board. NEW BUSINESS 2. Resolution No. OB2020-01 APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1) FOR THE PERIOD JULY 1, 2020 THROUGH JUNE 30, 2021 • Recommendation: Consider and adopt Resolution OB2020-01, 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, 2020 through June 30, 2021. Finance Director Leaver gave a history of the ROPS and the current status. The ROPS 20-21 would authorize the Successor Agency to request $82,172 in RPTTF funds to make the final payment on the outstanding SERAF loan and begin payment on the Water Fund loan. 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. In addition, the ROPS requests $5,000 in additional RPTTF Oversight Board Minutes 1/15/20 funds to pay for administrative costs, which are otherwise paid by the City’s General Fund. On a motion by Vice-Chair Harris, seconded by Board Member Barber, and carried on a 6-0 polled vote, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Crescent City adopted Resolution No. OB2020-01, 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, 2020 THROUGH JUNE 30, 2021. 3. Oversight Board Meeting Schedule • Recommendation: Consider and adopt Resolution OB2020-02, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY PROVIDING THE TIME AND PLACE FOR HOLDING THE OVERSIGHT BOARD’S REGULAR MEETINGS Finance Director Leaver reported to the Board that in order to better accommodate schedules of the Board, it is being recommended by staff to change the meeting date/time of the Oversight Board from the second Wednesday of January and July at 10am to the third Wednesday of January and July at 2pm. She further stated that should there be the need for an additional meeting, a special meeting will be called. The Board was in agreement that changing the time and date would be agreeable. On a motion by Board Member Howard, seconded by Board Member Stone and carried unanimously on a 6-0 polled vote, the Oversight Board of the Successor Agency to the Dissolved Redevelopment Agency of the City of Crescent City adopted Resolution No. OB2020-02, A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY PROVIDING THE TIME AND PLACE FOR HOLDING THE OVERSIGHT BOARD’S REGULAR MEETINGS. ➢ Finance Director Report – None ADJOURNMENT There being no further business to come before the Oversight Board, Chairman Inscore adjourned the meeting at 2:40 p.m. to the next scheduled meeting on July 16, 2020 at 10:00 a.m. in the Waste Water Treatment Plant main conference room, 210 Battery St. ATTEST: _________________________ Robin Patch, Secretary to the Board { 2 }  OVERSIGHT BOARD AGENDA REPORT TO: CHAIR 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 20, 2021 SUBJECT: RESOLUTION NO. OB2021-01 APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) FOR THE PERIOD JULY 1, 2021 THROUGH JUNE 30, 2022 RECOMMENDATION • Hear staff report • Receive public comment • Adopt Resolution OB2021-01 approving a Recognized Obligation Payment Schedule (ROPS) for the period July 1, 2021 through June 30, 2022 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 there are two (SERAF loan and 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 21-22 January 20, 2021 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. Under State law, the SERAF loan must be paid first and then the Water Fund loan. 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 December 21, 2020 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, 2021. ANALYSIS Attached is the ROPS for the period July 1, 2021 through June 30, 2022. It is organized into the following sections as required by the California Department of Finance: Recognized Obligation Payment Schedule (ROPS 21-22) – 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: • Reserve fund balance • Redevelopment Property Tax Trust Fund (RPTTF) Of these amounts, the Successor Agency is required to use reserve fund balance 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 proposed 21-22 ROPS estimates a maximum of $24,000 will be available to make recognized obligation payments plus a request of $5,000 for admin costs. Based on the prior year payments, the Successor Agency is not expected to have any reserve fund balance available for payments, so the entire amount will be requested from RPTTF. Under AB 1484, the outstanding SERAF loan is required to be paid before the Water Fund loan. The remaining balance on the SERAF loan is $18,704, which is proposed to be repaid with this ROPS. The remaining residiaul amount of $5,296 will be used to make the first payment on the Water Fund loan. 2 Oversight Board Staff Report ROPS 21-22 January 20, 2021 The amount available to make payments on the Successor Agency’s obligations changes each year due to the calculation of residual RPTTF. Note: Due to the timing of when RPTTF information is available and when the ROPS is required to be submitted to the State Department of Finance, the ROPS amounts presented are estimates. After the ROPS is submitted to the Department of Finance (due by February 1, 2021), DOF staff will review the ROPS and updated RPTTF information and provide a final determination. The DOF will determine the actual amounts to be made available to the Successor Agency. Of the amounts made available to the Successor Agency for enforceable obligations, the total will first be applied to the SERAF loan per State regulations, with the remaining balance applied to the Water Fund loan. The ROPS also requests $5,000 in Admin RPTTF for the Successor Agency to recover its administrative costs. 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 21-22 would authorize the Successor Agency to request $24,000 in RPTTF funds to make the final payment on the outstanding SERAF loan and begin payment on the Water Fund loan. 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. In addition, the ROPS requests $5,000 in additional RPTTF funds to pay for administrative costs, which are otherwise paid by the City’s General Fund. ATTACHMENTS • Resolution No. OB2021-01 • ROPS 21-22 3  OVERSIGHT BOARD RESOLUTION NO. 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(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 21-22”) for the period of July 1, 2021 through June 30, 2022, 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 21-22 must be submitted to the DOF and the County Auditor-Controller by February 1, 2021, 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, 2021; 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 21-22 through this Resolution does not commit the Oversight Board to any action that may have a significant effect Oversight Board Resolution No. OB2021-01 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 21-22, 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, 2021, 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 20th day of January 2021, by the following vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Chairperson ATTEST: _______________________________ Robin Patch, Secretary to the Board Page 2 Oversight Board Resolution No. OB2021-01 EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE 21-22 [Attached behind this page]  Recognized Obligation Payment Schedule (ROPS 21-22) - Summary Filed for the July 1, 2021 through June 30, 2022 Period Successor Agency: Crescent City County: Del Norte 21-22A Total 21-22B Total Current Period Requested Funding for Enforceable ROPS 21-22 (July - (January - Obligations (ROPS Detail) Total December) June) A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 26,500 $ 2,500 $ 29,000 F RPTTF 24,000 - 24,000 G Administrative RPTTF 2,500 2,500 5,000 H Current Period Enforceable Obligations (A+E) $ 26,500 $ 2,500 $ 29,000 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 21-22) - ROPS Detail July 1, 2021 through June 30, 2022 A B C D E F G H I J K L M N O P Q R S T U V W ROPS 21-22A (Jul - Dec) ROPS 21-22B (Jan - Jun) Agreement Agreement Total ROPS Item Obligation Project Fund Sources 21-22A Fund Sources 21-22B Project Name Execution Termination Payee Description Outstanding Retired 21-22 # 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 $734,688 $29,000 $- $- $- $24,000 $2,500 $26,500 $- $- $- $- $2,500 $2,500 1 Water Fund City/County 01/01/ 06/30/2032 City of Debt to fund RDA 1 710,984 N $5,296 - - - 5,296 - $5,296 - - - - - $- Loan * Loan (Prior 06/ 1996 Crescent non-housing &2 28/11), Other City Water projects Utility 5 SERAF 2010 SERAF/ERAF 03/01/ 06/30/2032 Crescent repayment of RDA 1 18,704 N $18,704 - - - 18,704 - $18,704 - - - - - $- repayment * 2010 City RDA SERAF &2 set-aside payment borrowed 7 Administrative Admin Costs 07/01/ 06/30/2030 City of Administrative RDA 5,000 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 21-22) - Report of Cash Balances July 1, 2018 through June 30, 2019 (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 18-19 Cash Balances RPTTF and Bonds issued Bonds issued Comments (07/01/18 - 06/30/19) 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 07/01/18) 63,372 38,690 - RPTTF amount should exclude "A" period distribution amount. 2 Revenue/Income (Actual 06/30/19) - 19,263 RPTTF amount should tie to the ROPS 18-19 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 18-19 Enforceable Obligations 45,103 38,690 19,263 (Actual 06/30/19) 4 Retention of Available Cash Balance (Actual 06/30/19) 18,269 RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 18-19 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 18-19 PPA No entry required form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/19) $- $- $- $- $- C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)  Crescent City Recognized Obligation Payment Schedule (ROPS 21-22) - Notes July 1, 2021 through June 30, 2022 Item # Notes/Comments 1 5 7