Special Crescent City Council Meeting

CITY OF CRESCENT CITY Mayor Isaiah Wright Mayor Pro Tem Blake Inscore Council Member Raymond Altman Council Member Jason Greenough AGENDA SPECIAL CITY COUNCIL MEETING FLYNN CENTER BOARD CHAMBERS 981 H STREET CRESCENT CITY, CA 95531 TUESDAY JANUARY 10, 2023 6:00 P.M. ZOOM PHONE NUMBER: 1 (253) 215-8782 ZOOM WEBINAR ID: 840 9464 0369 MUTE / UNMUTE PRESS *6 RAISE HAND PRESS *9 The public may access and participate in the public meeting using one or more of the following methods: 1) Attend the meeting in person, public comment at the podium will be allowed. 2) Participate live online via Zoom (details below) or by utilizing the link to join the meeting posted on both the City of Crescent City – City Hall Facebook page and the City of Crescent City website (www.crescentcity.org), public comment may be made by using the raise hand feature on Zoom; 3) Watch the meeting via livestream on YouTube (channel: City of Crescent City, California), public comment may be made by calling in to the meeting using the Zoom phone number; 4) Public comments may be made in advance by submitting written comment via publiccomment@crescentcity.org or by filing it with the City Clerk at 377 J Street, Crescent City, California, 95531. All public comments (via email or mail) must be received by the City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and agenda item to which your comment pertains in the subject line. Public comments so received will be forwarded to the City Council and posted on the website next to the agenda. Written public comments will not be read aloud during the meeting. Notice regarding Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102- 35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website: www.crescentcity.org OPEN SESSION Call to order Roll call Pledge of Allegiance 1|Page 1/10/23 COUNCIL AGENDA PUBLIC COMMENT PERIOD Any member of the audience is invited to address the City Council on any matter that is within the jurisdiction of the City of Crescent City. Comments of public interest or on matters appearing on the agenda are accepted. Note, however, that the Council is not able to undertake extended discussion or act on non-agendized items. Such items can be referred to staff for appropriate action, which may include placement on a future agenda. All comments shall be directed toward the entire Council. Any comments that are not at the microphone are out of order and will not be a part of the public record. After receiving recognition from the Mayor, please state your name and city or county residency for the record. Public comment is limited to three (3) minutes. The public is additionally allotted three minutes each in which to speak on any item on the agenda prior to any action taken by the Council. ➢ Reports, Concerns, Referrals, Council travel and training reports – In accordance with Gov’t Code § 54954.2(a), City Council Members may make brief announcements or brief reports on their own activities. They may ask questions for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. CONSENT CALENDAR 1. Amendment to CDBG Coronavirus Response Mobile Food Pantry Subrecipient and Grant Agreements to Include Brick and Mortar Food Pantry Services • Recommendation: Approve and authorize the City Manager to execute Amendment No. 4 to the Subrecipient Agreement between the City of Crescent City and Family Resource Center of the Redwoods for Mobile Food Pantry Services • Approve and adopt Resolution No. 2023-01, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING RESOLUTION NO. 2021-53 TO SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY - Call to order – - Roll call – - Consent Calendar – 2. Meeting minutes • Recommendation: Approve and adopt the meeting minutes from the January 6, 2020 and the December 21, 2020 meetings of the Successor Agency to the Redevelopment Agency 3. Recognized Obligation Payment Schedule (ROPS) • Recommendation: Consider and adopt Resolution SA2023-01, A RESOLUTION 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, 2023 THROUGH JUNE 30, 2024, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1) AND (m). - Business Items - None ADJOURNMENT 2|Page 1/10/23 COUNCIL AGENDA Adjourn to the next meeting of the Successor Agency, date to be determined. NEW BUSINESS 4. City Council Vacancy Interviews / Appointment • Recommendation: Hear staff report • Conduct Council applicant interviews • Receive public comment • Council discussion o Consider one of the following actions: Appoint [applicant’s name] to fill the vacant council seat and be sworn into office on January 17, 2023 to serve through the November 2024 General election. o Reconsider previous motion to fill the vacancy by appointment; take action as necessary and appropriate ▪ Reconsideration would require the following successful motions: • Motion to suspend the rules to allow a motion to reconsider the method of filling the council vacancy • Motion to reconsider the motion to fill the council vacancy by appointment ▪ Motion to fill the vacancy by appointment / special election CITY COUNCIL ITEMS ➢ Legislative Matters – Consider miscellaneous legislative matters pertinent to the City of Crescent City. Authorize the Mayor to sign the appropriate letters and/or positions with respect to such matters. ➢ City Manager Report and City Council Directives – Pursuant to Crescent City Municipal Code § 2.08.200, the City Council may instruct the city manager on matters of importance to the administrative services of the City and provide direction with respect to subordinates of the City Manager. (Directives from individual Council Members that are not objected to by any member present shall be considered an order of the City Council.) ADJOURNMENT Adjourn to the regular scheduled meeting of the City Council of the City of Crescent City on Tuesday, January 17, 2023 at 6:00 p.m. in the Flynn Center, 981 H Street, Crescent City, CA 95531. POSTED: January 6, 2022 /s/ Robin Altman City Clerk/Administrative Analyst Vision: The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents, businesses and visitors through leadership, diversity, and teamwork. Mission: The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our diverse history, culture and unique natural resources. Values: 3|Page 1/10/23 COUNCIL AGENDA  Accountability Honesty & Integrity Excellent Customer Service Effective & Active Communication Teamwork Fiscally Responsible 4|Page 1/10/23 COUNCIL AGENDA  CITY COUNCIL AGENDA REPORT TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER BY: BRIDGET LACEY, GRANTS AND ECONOMIC DEVELOPMENT COORDINATOR DATE: JANUARY 10, 2023 SUBJECT: AMENDMENT TO CDBG CORONAVIRUS RESPONSE MOBILE FOOD PANTRY SUBRECIPIENT AND GRANT AGREEMENTS TO INCLUDE BRICK AND MORTAR FOOD PANTRY SERVICES ______________________________________________________________________ RECOMMENDATION • Approve and authorize the City Manager to execute Amendment No. 4 to the Subrecipient Agreement between the City of Crescent City and Family Resource Center of the Redwoods for Mobile Food Pantry Services • Approve and authorize Resolution 2023-01, a Resolution of the City Council of the City of Crescent City Amending Resolution No. 2021-53 to Expand Food Pantry Services Activity Under CDBG-CV-2/3 BACKGROUND The Department of Housing and Community Development (HCD) administers the Community Development Block Grant (CDBG) program for non-entitlement jurisdictions in California. (Cities with populations less than 50,000 and Counties with populations less than 200,000 are considered non-entitlement areas, meaning they do not apply for CDBG funding directly from the Federal government but rather apply to the State.) This program provides grant funding for programs associated with economic development and services to low-income individuals and families. On January 27, 2021, the City was awarded $500,000 in 2020 CDBG funding to operate a food bank. The Family Resource Center of the Redwoods (FRC) was selected as the City’s subrecipient to run the Pacific Pantry with $465,000 in grant funding allocated towards project services and $35,000 allocated to general administrative services. The CDBG program was allocated additional funding through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide funding to local agencies responding to the COVID-19 pandemic. This funding is non-competitive and allocated to all jurisdictions 1  MOBILE FOOD PANTRY AGREEMENTS 2 JANUARY 10, 2023 according to a formula. The projects must be specifically targeted to prevent, prepare for, and respond to COVID-19. Funding was awarded in multiple rounds. For round 1 (CDBG CV-1), Crescent City and Del Norte County elected to pool their allocations totaling $185,653 to fund a single project and selected the FRC to create and operate a mobile food pantry to serve the entire county, expanding the existing brick and mortar location of Pacific Pantry to help serve those who were sheltering in place. Since the City already had an existing relationship with the FRC, the City was asked to administer the grant funds and oversee the subrecipient. The remaining rounds of funding (CV 2 and 3) were combined into one, and jurisdictions were encouraged to use the CV-2/3 funding to extend their CV-1 projects if possible. As a result, the City added the $214,118 in CV-2/3 funding to the existing mobile pantry project to extend this project for an additional year. The CV-2/3 portion of this project is using only the City’s allocation, and the County is using their CV-2/3 allocation for another project. The total amount awarded in CV funding for the FRC’s mobile pantry project is $431,766, with $368,210 allocated to program expenses and $63,556 allocated to general administrative services. ANALYSIS The addition of the Mobile Pantry and aftermath of the pandemic have changed what was initially projected in terms of operating expenses at the FRC’s Pacific Pantry (brick and mortar location). There were initially delays in getting the Mobile Pantry manufactured and shipped due to COVID, which put a strain on the Pacific Pantry, but once the Mobile Pantry was up and running there was a great response from the public which seems to have brought even more attention to the Pacific Pantry on the days when the Mobile Pantry is not in service. Since other COVID assistance resources have ended, the number of beneficiaries at the Pacific Pantry have increased. There has also been a turnover in staff at the FRC, which has made adjusting to the changing needs more difficult. As the budgets for the Mobile Pantry and Pacific Pantry currently stand, the Pacific Pantry is projected to have a shortfall by the end of the expenditure period, while the Mobile Pantry is not expected to be able to spend all of the funding allocated to that activity by the end of that expenditure period. The current budgets and expenditure periods for each activity are as follows: Mobile Pantry grant expenditure period: 5/4/21 – 10/19/23 Program $368,210 General Admin $63,556 Pacific Pantry grant expenditure period: 1/27/21 – 1/26/24 Program $465,000 General Admin $35,000  MOBILE FOOD PANTRY AGREEMENTS 3 JANUARY 10, 2023 City staff has been working with the FRC and HCD to ensure that these funds stay in our community for food bank services, as intended. The first step was to consolidate the budgetary line items on the Subrecipient Agreements to allow for more flexibility between expenses. In the meantime, City staff has been working with HCD in hopes of amending the Grant Agreement to allow for a change in budget and scope for the Mobile Pantry activity. The goal would be to move the portion of the general admin budget, that City staff does not anticipate being able to spend by the expenditure deadline, to the program budget. Then, if the scope is changed to include the Pacific Pantry activity in addition to the Mobile Pantry, this would allow the Pacific Pantry to be fully funded through their expenditure period at the current rate of spending. The proposed change to the Mobile Pantry grant agreement budget and scope is as follows: Current: Mobile Pantry grant expenditure period: 5/4/21 – 10/19/23 Program $368,210 General Admin $63,556 Proposed: Food Pantry (Mobile Pantry and Pacific Pantry services) grant expenditure period: 5/4/21 – 10/19/23 Program $400,205 General Admin $31,561 *the existing Pacific Pantry Grant and Subrecipient Agreements would not change. Since the last Subrecipient Amendment, City staff has received confirmation from HCD that we can move forward with a Revision Request to the Grant Agreement for the proposed changes but will first need another amendment to the Subrecipient Agreement and revised Resolution. The proposed amendments are attached to this report for Council approval. FISCAL ANALYSIS Amending the subrecipient agreement with the FRC will increase the program funds available for the FRC but is not expected to have a fiscal impact to the City due to the fact that the general administration funds that will be transferred to the program are not projected to be expended by the deadline. The City will still have, in total, $66,561 in general admin dollars available to administer both activities. STRATEGIC PLAN ANALYSIS This report is consistent with the following Strategic Plan Goals: • Goal 1: Support quality services, community safety, and health to enhance the quality of life and experience of our residents and visitors  MOBILE FOOD PANTRY AGREEMENTS 4 JANUARY 10, 2023 • Goal 1(A): Enhance collaboration with other agencies and the community to better aid the public • Goal 2(D): Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities • Goal 2(F)(9): Expand on the success of grant funding by maximizing utilization of opportunities with corresponding community needs • Goal 3: Maintain responsible fiscal management and accountability ATTACHMENTS 1. FRC Mobile Pantry Subrecipient Agreement Amendment No. 4 2. Resolution No. 2023-01  AMENDMENT NO. 4 TO SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF CRESCENT CITY AND THE FAMILY RESOURCE CENTER OF THE REDWOODS FOR MOBILE FOOD PANTRY SERVICES This Amendment No. 4 is entered into on this 9 th day of January 2023, by and between the City of Crescent City, a California municipal corporation, hereinafter referred to as the "GRANTEE", and the Family Resource Center of the Redwoods, a California nonprofit corporation, hereinafter referred to as the "SUBRECIPIENT". WHEREAS, GRANTEE and SUBRECIPIENT entered into a Subrecipient Agreement dated August 18, 2020 (“Agreement”); and WHEREAS, the Agreement provides for implementing and operating a Mobile Food Pantry with CDBG-CV1 funding as referenced in the Agreement under Section II; and WHEREAS, the Agreement was amended on February 1, 2021 to account for the additional funding which had become available through another CDBG-CV allocation (CDBG-CV2/3), again on March 15th, 2021 to account for the decrease in the percentage of the grant that the City is allowed to retain for general administrative services on the CDBG-CV2/3 allocation, and again on December 19, 2022 to consolidate budget line items into one project budget; and WHEREAS, since then, the State has granted the City’s request to submit a contract revision to move the portion of the general administration budget, which is not projected to be expended by the deadline, to the project budget so that these funds can be expended before the approaching deadline and to change the scope of the project to include services at the bricks and mortar pantry (Pacific Pantry); and WHEREAS, the Agreement now requires amendment to increase the FRC project budget and change the scope to include all FRC food pantry services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: A. SCOPE Section II of the Agreement and Amendment No. 3 provides the following scope: The SUBRECIPIENT will be responsible for implementing and operating a Mobile Food Pantry Service using CDBG grant funding under CDBG-CV1/2/3 funding in a manner satisfactory to the GRANTEE and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant Program: Page 1|3  Program Delivery – Implementation and Operation of a Mobile Food Pantry This Amendment No. 4 serves to amend the scope as follows: The SUBRECIPIENT will be responsible for implementing and operating a Food Pantry Service using CDBG grant funding under CDBG-CV1/2/3 funding in a manner satisfactory to the GRANTEE and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant Program: Program Delivery – Implementation and Operation of a Food Pantry (inclusive of both mobile food pantry and brick and mortar food pantry services) B. BUDGET Section V of the Agreement and Amendment No. 3 provides the following budget: Mobile Food Pantry Services $368,210 This Amendment No. 4 serves to amend the budget as follows: Food Pantry Services $400,205 C. PAYMENT Section V and Amendment No. 1, 2 and 3 provides for compensation to be paid by GRANTEE to SUBRECIPIENT based on a Not to Exceed amount Three Hundred Sixty-Eight Thousand, Two Hundred and Ten Dollars ($368,210.00). This Amendment No. 4 serves to increase the compensation amount to “Not to Exceed Four Hundred Thousand, Two Hundred and Five Dollars ($400,205). D. TERMS AND CONDITIONS Except as expressly modified in this Amendment No. 4, the terms and conditions of the Agreement and the rights, duties, and obligations of the parties thereunder remain unchanged and continue in full force and effect. [signature page to follow] Page 2|3  RESOLUTION NO. 2023-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING RESOLUTION NO. 2021-53 TO EXPAND FOOD PANTRY SERVICES ACTIVITY UNDER CDBG-CV2/3 WHEREAS, the City Council has adopted Resolution No. 2021-53, a Resolution of the City Council of the City of Crescent City Approving An Application for Funding and the Execution of a Grant Agreement and Any Amendments Thereto from the 2020 Community Development Block Grant Program – Coronavirus Response Round 2 and 3 (CDBG-CV2 and CV3) NOFA dated December 18, 2020; and WHEREAS, the activity designated in SECTION 1 of said Resolution is for a “Public Service: Food Pantry Services – Mobile Pantry”; and WHEREAS, the City would like to expand this service to include, both, the Mobile Pantry and Pacific Pantry (brick and mortar food pantry); and WHEREAS, inclusion of this activity requires an amendment to Resolution No. 2019-53, which authorized the original activity. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crescent City that Section 1 of Resolution No. 2021-53 is hereby amended to read as follows: SECTION 1: The City Council has reviewed and hereby approves the submission to the State of California one or more applications(s) in the aggregate amount, not to exceed, of $300,000 for the following CDBG-CV2 and CV3 activities pursuant to the December 2020 CDBG-CV2/3 Notice of Funding Availability (NOFA): Public Service: Food Pantry Services Not to Exceed $300,000 APPROVED and ADOPTED and made effective the same day at a meeting of the City Council of the City of Crescent City held on the 10th day of January 2023 by the following polled vote: AYES: NOES: ABSTAIN: ABSENT: _______________________________ Isaiah Wright, Mayor ATTEST: _____________________________ Robin Altman, City Clerk CITY OF CRESCENT CITY RESOLUTION NO. 2023-01 Page 1 ADJOURN TO THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY  MINUTES Successor Agency to the Redevelopment Agency REGULAR MEETING JANUARY 6, 2020 AT 6:00 P.M. FLYNN CENTER, 981 H STREET, CRESCENT CITY, CA 95531 Call to order – Chair Inscore called the meeting to order at 6:41 p.m. Roll call – Directors present: Director Jason Greenough, Director Isaiah Wright, Vice-Chair Heidi Kime, and Chair Blake Inscore Director absent: Director Alex Fallman Staff present: City Manager Eric Wier, Finance Director Linda Leaver, City Attorney Martha Rice, and City Clerk/Administrative Analyst/Board Secretary Robin Patch Consent Calendar – None Business Items - None 10. Recognized Obligation Payment Schedule (ROPS) • Recommendation: Consider and adopt Resolution SA2020-01, A RESOLUTION 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 2, 2020 THROUGH JUNE 30, 2020, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1) AND (m). Finance Director Leaver asked the Board to approve the ROPS and it will then go to the Oversight Board this next week. The proposed 20-21 ROPS estimates a maximum of $87,172 to make recognized obligation payments. Of this amount, $82,172 is estimated to be available from RPTTF residual to make loan payments and $5,000 from RPTTF admin allowance to cover Successor Agency admin costs. Director Leaver further reported to the Board, that under AB 1484 (adopted in 2012), the outstanding SERAF loan is required to be paid before the Water Fund loan. The remaining balance of the SERAF loan is $35,100, which is proposed to be repaid with the 20-21 ROPS. The remaining residual amount of $47,072 will be used to make the first payment on the Water Fund loan. The Successor Agency’s consultant, Don Fraser, has estimated the loan will be paid off in FY 2028-29. On a motion by Director Greenough, seconded by Director Wright, and carried on a 4-0 polled vote with Director Fallman being absent, the Successor Agency to the Dissolved Redevelopment Agency adopted Resolution No. SA2020-01, A RESOLUTION 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 2, 2020 THROUGH JUNE 30, 2020, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1) AND (m). There being no further business to come before the Successor Agency, Chair Inscore adjourned the meeting at 6:48 p.m. to the next meeting of the Successor Agency, date to be determined. ATTEST: _______________________ Robin Patch City Clerk/Administrative Analyst/Board Secretary 2  MINUTES Crescent City Successor Agency to the Redevelopment Agency REGULAR MEETING DECEMBER 21, 2020 AT 6:00 P.M. VIRTUAL MEETING VIA ZOOM, CRESCENT CITY, CA 95531 - Call to order – Chairman Greenough called the meeting of the Successor Agency to the Redevelopment Agency to order at 6:42 p.m. - Roll call – Board Members present: Board Member Blake Inscore, Board Member Beau Smith, Board Memer Isaiah Wright, Vice-Chairman Alex Campbell and Chairman Jason Greenough Staff present: City Manager Eric Wier, Finance Director Linda Leaver and Board Secretary Robin Patch - Consent Calendar - None - Business Items – None - Public Hearing - None - New Business 10. Recognized Obligation Payment Schedule Pursuant to Health and Safety Code Section 34277(I) For the Period July 1, 2021 Through June 30, 2022 • Adopt Resolution No. SA2020-02, A RESOLUTION 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, 2021 THROUGH JUNE 30, 2022, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) AND (M) Finance Director Leaver explained the ROPS and the procedure that comes along with it. On a motion by Board Member Wright, seconded by Board Member Inscore, and carried unaimously on a 5-0 polled vote, the Successor Agency to the Redevelopment Agency adopted Resolution No. SA2020-02, A RESOLUTION 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, 2021 THROUGH JUNE 30, 2022, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) AND (M) 11. Appointment of Member to Oversight Board • Adopt Resolution No. SA2020-03, CONFIRMING THE MAYOR’S APPOINTMENT OF JASON GREENOUGH TO THE OVERSIGHT BOARD TO REPRESENT THE CITY 01/21/20 RDA MINUTES City Manager Wier reported that this particular item requires a resolution and is to go before the Successor Agency. Vice Chairman Campbell asked what City Manager Wier’s and Finance Director Leaver’s role was in informing the Council; Director Leaver expalined that the OB is not a City Board it is a Board representing the local taxing entities which comprise of the City of Crescent City, the County of Del Norte, Crescent City Harbor District and the Del Norte Unified School District. City Manager Wier is on the Board to represent the employees of the RDA, Director Leaver is the contact person between the Successor Agency and the state. On a motion by Board Member Wright, seconded by Board Member Smith, and carried unaimously on a 5-0 polled vote, the Successor Agency to the Redevelopment Agency adopted Resolution No. SA2020-03, CONFIRMING THE MAYOR’S APPOINTMENT OF JASON GREENOUGH TO THE OVERSIGHT BOARD TO REPRESENT THE CITY ADJOURNMENT There being no further business, Chairman Greenough adjourned the meeting at 6:50 p.m. to the next regular meeting of the Successor Ageny to the Redevelopment Agency in January 2022. ATTEST: _____________________________ Robin Patch, Board Secretary 01/21/20 RDA MINUTES  SUCCESSOR AGENCY AGENDA REPORT TO: SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY FROM: LINDA LEAVER, CITY OF CRESCENT CITY FINANCE DIRECTOR DATE: JANUARY 10, 2023 SUBJECT: RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2024 RECOMMENDATION • Consider and adopt Resolution SA2023-01, A Resolution 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, 2023 Through June 30, 2024, Pursuant to Health and Safety Code Section 34177(l) and (m) BACKGROUND Pursuant to Health and Safety Code Section 34172, the Redevelopment Agency of the City of Crescent City (“Agency”) was dissolved as of February 1, 2012. The City of Crescent City (“RDA Successor Agency”) is the successor agency of the former Redevelopment Agency, and pursuant to Health and Safety Code Section 34173(g), the RDA Successor Agency is a separate legal entity from the City. The Oversight Board is responsible for approving the actions of the RDA Successor Agency pursuant to Health and Safety Code Section 34179, including the Recognized Obligation Payment Schedule (“ROPS”). One of the responsibilities of the Successor Agency is to prepare a ROPS, which sets forth the nature, amount, and source(s) of payment of all “enforceable obligations” of the Agency (as defined by law) to be paid by the Successor Agency. This report is for the fiscal period July 1, 2023 through June 30, 2024. This ROPS, once approved by the Successor Agency, must be submitted to the Oversight Board for approval. The Oversight Board is scheduled to meet January 18, 2023. The approved ROPS is required to be submitted to the Department of Finance, California State Controller, and County Auditor-Controller by February 1, 2023. 3 Successor Agency Staff Report ROPS 23-24 January 10, 2023 ANALYSIS Attached is the ROPS for the period July 1, 2023 through June 30, 2024. It is organized into the following sections: Recognized Obligation Payment Schedule (ROPS 23-24) – 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 23-24 is based on the 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 estimates $90,000 to make recognized obligation payments plus $5,000 for administrative costs. As the FY 2022-23 ROPS is estimated to use all of the Successor Agency’s existing cash, the ROPS 23-24 amount is requested to be funded from RPTTF. The Water Fund loan that was approved by the Department of Finance in 2015 was $685,286. (This is not the full amount the RDA submitted for approval, but DOF denied $518,433 and the City’s General Fund took over that portion.) Interest has been calculated on the Water Fund approved amount (based on LAIF rate at the time of the loan, as required under state regulations) and will continue to be added each year until the balance is paid in full. The first payment of $5,296 was paid in FY 2021-22, and $150,000 is scheduled to be paid in FY 2022-23. After the FY 2022-23 payment, the balance on the Water Fund loan will be $571,107. The total amount to be repaid each year will depend on the RPTTF residual, which fluctuates from year to year. For FY 2023-24, the amount is estimated at $90,000, although this may be adjusted by the State after its review. Current estimates for the 2 Successor Agency Staff Report ROPS 23-24 January 10, 2023 payoff of this final loan show the last payment in FY 2029-30, although this could change depending on actual RPTTF amounts available each year. Also under AB 1484, 20% of the Water Fund loan repayment must be paid into the Successor Housing Fund for affordable housing. Therefore, of the proposed $90,000 payment on the Water Fund loan, $18,000 would go to the Successor Housing Fund and $72,000 would go to the Water Fund. In order to address what would otherwise be a loss to the Water Fund, the City Council approved payment in FY 2021-22 from the General Fund to the Water Fund to cover the full 20% it would have lost. Cash Balance Report The Report of Cash Balances tracks Successor Agency cash flow and ending balances across several ROPS periods. This form provides transparency over the continual estimation and tax distribution true-up processes embedded in the State dissolution law. FISCAL IMPACT The ROPS 23-24 financial report would authorize the Successor Agency to request $95,000 from RPTTF funds for a total loan payment of $90,000 plus $5,000 in 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. SA2023-01 • ROPS 23-24 3  RESOLUTION NO. SA2023-01 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF CRESCENT CITY, APPROVING AND ADOPTING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE COVERING THE PERIOD JULY 1, 2022 THROUGH JUNE 30, 2023, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(l) AND (m) WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Crescent City elected to become the successor agency to the Redevelopment Agency of the City of Crescent City (“Successor Agency”) by Resolution No. 2012-03 on January 17, 2012; and WHEREAS, pursuant to Health and Safety Code Section 34173(g), the Successor Agency is now a separate legal entity from the City; and WHEREAS, Health and Safety Code Section 34177(l) requires the Successor Agency to prepare a recognized obligation payment schedule (“ROPS”) before each fiscal year; and WHEREAS, Health and Safety Code Section 34177(l)(2) requires the Successor Agency to submit the ROPS to the Successor Agency’s oversight board for its approval, and upon such approval, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the Del Norte County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency’s website; and WHEREAS, Health and Safety Code Section 34177(m) requires that the Approved ROPS for the period July 1, 2023 through June 30, 2024 (“ROPS 23-24”) is required to be submitted to the Department of Finance, California State Controller and the County Auditor-Controller by February 1, 2023; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE FORMER 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 23-24 through this Resolution does not commit the Successor Agency to any action that may have a SUCCESSOR AGENCY RESOLUTION NO. SA2023-01 Page 1 significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk is authorized and directed to file a Notice of Exemption with the appropriate official of the County of Del Norte, California, within five (5) days following the date of adoption of this Resolution. Section 3. Approval of ROPS. The Successor Agency hereby approves and adopts the ROPS 23-24, covering the period July 1, 2023 through June 30, 2024, in substantially the form attached to this Resolution as Exhibit A, as required by Health and Safety Code Section 34177. Section 4. Transmittal of ROPS. The Finance Director, Linda Leaver, is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the ROPS 23-24, including submitting the ROPS 23-24 to the Successor Agency’s oversight board for approval, and submission of the Approved ROPS to the Del Norte County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency’s website. Section 5. Effectiveness. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED at a meeting of the Successor Agency to the former Redevelopment Agency of the City of Crescent City on the 10th day of January, 2023, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ________________________________ Isaiah Wright, Chairperson ATTEST: ________________________________ Robin Altman, Secretary SUCCESSOR AGENCY RESOLUTION NO. SA2023-01 Page 2  EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE [Attached behind this page] SUCCESSOR AGENCY RESOLUTION NO. SA2023-01 Page 3  Recognized Obligation Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Successor Agency: Crescent City County: Del Norte 23-24A Total 23-24B Total Current Period Requested Funding for Enforceable ROPS 23-24 (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) $ 95,000 $ - $ 95,000 F RPTTF 90,000 - 90,000 G Administrative RPTTF 5,000 - 5,000 H Current Period Enforceable Obligations (A+E) $ 95,000 $ - $ 95,000 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 23-24) - ROPS Detail July 1, 2023 through June 30, 2024 A B C D E F G H I J K L M N O P Q R S T U V W ROPS 23-24A (Jul - Dec) ROPS 23-24B (Jan - Jun) Agreement Agreement Total ROPS Item Project Fund Sources 23-24A Fund Sources 23-24B Project Name Obligation Type Execution Termination Payee Description Outstanding Retired 23-24 # 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 $619,902 $95,000 $- $- $- $90,000 $5,000 $95,000 $- $- $- $- $- $- 1 Water Fund City/County 01/01/ 06/30/2032 City of Debt to fund RDA 1 569,902 N $90,000 - - - 90,000 - $90,000 - - - - - $- Loan * Loan (Prior 06/ 1996 Crescent non-housing &2 28/11), Other City Water projects Utility 7 Administrative Admin Costs 07/01/ 06/30/2030 City of Administrative RDA 50,000 N $5,000 - - - - 5,000 $5,000 - - - - - $- allowance 2016 Crescent allowance 1&2 City  Crescent City Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021 (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 20-21 Cash Balances RPTTF and Bonds issued Bonds issued Comments (07/01/20 - 06/30/21) 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 07/01/20) 65,876 RPTTF amount should exclude "A" period distribution amount. 2 Revenue/Income (Actual 06/30/21) 10 21,396 RPTTF amount should tie to the ROPS 20-21 total distribution from the County Auditor-Controller 3 Expenditures for ROPS 20-21 Enforceable Obligations 18,794 (Actual 06/30/21) 4 Retention of Available Cash Balance (Actual 06/30/21) 63,000 RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 5 ROPS 20-21 RPTTF Prior Period Adjustment 2,602 No entry required RPTTF amount should tie to the Agency's ROPS 20-21 PPA form submitted to the CAC 6 Ending Actual Available Cash Balance (06/30/21) $- $- $- $2,886 $- C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)  Crescent City Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024 Item # Notes/Comments 1 7  CITY COUNCIL AGENDA REPORT TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER DATE: JANUARY 10, 2023 SUBJECT: CITY COUNCIL VACANCY INTERVIEWS / APPOINTMENT _____________________________________________________________________________ RECOMMENDATION • Hear staff report • Conduct Council applicant interviews • Receive public comment • Council Discussion • Consider one of the following actions: o Appoint [applicant’s name] to fill the vacant council seat and be sworn into office on January 17, 2023 to serve through the November 2024 General election certification. o Reconsider previous motion to fill the vacancy by appointment; take action as necessary and appropriate ▪ Reconsideration would require the following successful motions: • Motion to suspend the rules to allow a motion to reconsider the method of filling the council vacancy • Motion to reconsider the motion to fill the council vacancy by appointment ▪ Motion to fill the vacancy by appointment / special election BACKGROUND On November 17, 2022, Council Member Beau Smith resigned from the City Council, effective immediately. This has created a vacancy on the City Council. On December 5, 2022, the City Council passed a motion to fill the City Council vacancy by appointment and gave direction to staff to open the application period and schedule interviews. As stated in the December 5, 2022 staff report: Appointment: If the City Council chooses to fill the position by appointment, then the person appointed will serve until the November 2024 election. The appointment is to be made within 60 days of the occurrence of the vacancy. Mr. Smith’s resignation was effective November 17, 2022 and, therefore, the Council must make the appointment on or before January 16, 2023. The typical process for filling a vacancy involves advertising and receiving applications for a pre-determined amount of time, Council interviews of qualified applicants during the open session of a City Council meeting, and selection by a majority vote of the remaining four seated councilors. 4  Council Vacancy Interviews / Appointment 2 January 10, 2023 Staff began advertising the vacancy through multiple physical postings, the City's website, and social media pages on December 9, 2022. The City also placed a notice in the local newspaper, The Triplicate, on December 16th. The notice stated the deadline for applications as 5:00 p.m. on Tuesday, January 3rd. The notice also contained the legal requirements to be a city council member: applicants must (1) reside within the city limits, (2) be 18 years of age or older, and (3) a registered voter. ITEM ANALYSIS At the time of the filing deadline, the City Clerk had received three applications and confirmed the applicants meet the eligibility criteria. The applicants are as follows: • Kelly Schellong • Steve Shamblin • Raymond Walp Staff recommends the following interview process: Each applicant will be interviewed separately. The order in which the applicants are interviewed will be determined by the Mayor drawing names. The two applicants not being interviewed will be asked to leave the room. Once the first applicant has completed the interview, the next applicant will be brought in. • Each applicant will have two (2) minutes at the beginning of the interview to speak to the Council about their qualifications and desire to serve on the Council. • The same interview questions will be asked of each applicant. • Each Council member will take turns asking the questions. • Council Members may ask follow-up questions of the applicants if desired. • At the end of the question period the applicants will be allowed an additional two (2) minutes to provide closing remarks. • Once all interviews are complete, the Council may discuss and take one of the recommended actions listed at the beginning of the staff report. FISCAL ANALYSIS This action will have no fiscal impact. However, If the City Council chooses to fill the vacancy by special election, then the cost could be upwards of $40,000 per the County Elections Official. ATTACHMENTS 1. Applications from applicants