09-16-2014 - Approval and Transmittal of an Administrative Budg - Item SA2 with Attach 1 (2).pdfCity of West Covina
Memorandum
AGENDA
Item: SA 2
Date: September 16, 2014
TO: Successor Agency Board Members
FROM: Christopher J. Chung, Executive Director
BY: Nita McKay
Director of Finance & Administrative Services
SUBJECT: APPROVAL AND TRANSMITTAL OF AN ADMINISTRATIVE BUDGET
FOR THE SUCCESSOR AGENCY TO THE WEST COVINA
REDEVELOPMENT AGENCY AND A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE "ROPS" PURSUANT TO AB1X 26 FOR THE
PERIOD OF JANUARY 1, 2015 THROUGH JUNE 30, 2015
RECOMMENDATION:
It is recommended that the City Council, acting as the Successor Agency to the West Covina
Redevelopment Agency, adopt the following resolution:
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, ACTING AS SUCCESSOR AGENCY TO
THE WEST COVINA REDEVELOPMENT AGENCY, APPROVING AND
AUTHORIZING THE TRANSMITTAL OF AN ADMINISTRATIVE BUDGET
FOR THE SUCCESSOR AGENCY TO THE WEST COVINA
REDEVELOPMENT AGENCY AND A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE "ROPS" FOR THE PERIOD JANUARY 1, 2015
THROUGH JUNE 30, 2015, PURSUANT TO ASSEMBLY BILL 1X 26 (AB1X
26)
DISCUSSION:
The Successor Agency is required to file a Recognized Obligation Payment Schedule (ROPS)
every six months in order to receive a distribution of property tax increment dollars with which
to fund the obligations of the former Redevelopment Agency. These obligations include bond
debt service payments, amounts due under existing agreements with commercial property
owners, repayment of amounts borrowed from the Housing Fund to fund property tax shifts
mandated by the State, cost of litigation to protect assets of the former Redevelopment Agency,
repayment of loans to the City, and administrative costs of the Successor Agency to wind down
the affairs of the former Redevelopment Agency. While many of these listed items are not
necessarily debt, they are considered obligations for purposes of this mandated report and must
be listed on this report if they are to be funded with distributions of future tax increment dollars.
These items are not debt obligations of the City of West Covina.
The ROPS schedule (Attachment No. 2) lists all amounts that will be paid in the period January
1, 2015 through June 30, 2015. Once approved by the Successor Agency, the ROPS must then be
approved by the seven-member Successor Agency Oversight Board. The ROPS will be presented
to the Oversight Board at a special meeting on September 24, 2014. Once the ROPS is approved
by the Oversight Board, it then must be forwarded to the State Department of Finance (DOF) by
October 3, 2014. DOF holds final approval authority of the items listed on the ROPS and directs
the Los Angeles County Auditor-Controller to distribute tax increment funds to the Successor
Agency. Many of the obligations listed on the ROPS are estimates, i.e. variable rate debt service
payments, litigation, etc.
The Successor Agency is also required to adopt an administrative budget for each six-month
period. Attachment No. 3 to this report is the administrative budget for the Successor Agency for
the period of January through June 2015. This budget is to be funded by the administrative
allowance, which is equal to an amount that is the greater of 3% of the enforceable obligations
($127,629 for this six month period) or $250,000 annually. The City will absorb any
administrative costs above this administrative allowance.
The total amount of funding requested for enforceable obligations from the Redevelopment
Property Tax Trust Fund (RPTTF) on ROPS 14-15B is $4,381,936 and includes many of the
same items that have been previously approved by DOF. Certain items denied by DOF on past
ROPS remain on the form with no requested amounts, i.e. loans from the City. These items may
become enforceable obligations in the future if certain criteria are met.
The Successor Agency Administrative Budget is also attached for approval. This budget
contains the specific items that are included in the administrative budget on line 12 of the ROPS.
New items added to the Recognized Obligation Payment Schedule include:
Item #68 — City of West Covina vs. State of California- Alvarez-Glasman & Colvin $50,000.
This item pertains to the City of West Covina lawsuit against the State of California to preserve
the Agency/City loan agreements.
Item #69 — Caltrans Eminent Domain — Alvarez-Glasman & Colvin $40,000. This item pertains
to the condemnation action from California Department of Transportation (Caltrans) and the
seizure of Successor Agency properties at the West Covina Mall and Lakes office site.
Item #70 — Hassell Import Partners — Jones & Mayer $30,000. This item pertains to future
approvals (e.g. approval of dealers) and enforcement of the Settlement Agreement regarding
consent of the City of West Covina and Successor Agency and the sale of Auto mall property to
Bentley Real Estate LLC.
Item #71 — City of West Covina vs. State of California — Jones & Mayer $10,000. This item
pertains to the City of West Covina lawsuit against the State of California to preserve the
Agency/City loan agreements.
Item #72 — Caltrans Eminent Domain — Jones & Mayer $10,000. This item pertains to the
condemnation action from California Department of Transportation (Caltrans) and the seizure of
Successor Agency properties at the West Covina Mall and Lakes office site.
Item #73 — Loan Agreement — City of West Covina $821,365. This items pertains to Department
of Finance request to have a Loan Agreement between the City of West Covina and the
Successor Agency in order to retain previously expended legal costs.
Item #74 — Cooperative Agreement — City of West Covina $89,500. This item pertains to a
Cooperative Agreement between the City of West Covina and the Successor Agency to pay for
City staff time spent on projects pertaining to the Successor Agency and allowable charges for
rental space from the City.
Item #75 — Anticipated/Existing Litigation — Alvarez-Glasman & Colvin $49,000. This item
pertains to litigation costs for January through June 2014. The estimate for ROPS 13-14B was
$60,000 and the actual expenditures were $109,000.
Item #76 — Loan Agreement — City of West Covina $48,413. This item pertains to the City of
West Covina lawsuit against the State of California to preserve the Agency/City loan
agreements. These funds were expended from May 2013 to June 2014.
LEGAL REVIEW:
The Successor Agency Counsel has reviewed and approved this report, the resolution and the
Recognized Obligation Payment Schedule.
FISCAL IMPACT:
The City, as Successor Agency, cannot receive or spend any funds unless the amounts are listed
on a Recognized Obligation Payment Schedule. This schedule identifies all outstanding
obligations that must be satisfied before the Agency can be dissolved. The obligations listed on
this schedule will receive property tax allocations distributed by the County as their funding
source.
If the City's administrative costs exceed the administrative allowance, the excess expenditures
will be absorbed by the City.
Prepared by:
Nit'a McKay
Director of Finance & Adminisft tive Services
Reviewed and Approved:
Mike Lee, Assistant City Manager/Community
Development Commission Director
Attachments: 1 — Resolution
2— Recognized Obligation Payment Schedule (ROPS 14-15B)
3 — Successor Agency Administrative Budget for January 1, 2015 through June
30, 2015
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, ACTING AS SUCCESSOR AGENCY TO THE WEST COVINA
REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE
TRANSMITTAL OF AN ADMINISTRATIVE BUDGET FOR THE
SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT
AGENCY AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE
"ROPS" FOR THE PERIOD JANUARY 1, 2015 THROUGH JUNE 30,
2015, PURSUANT TO ASSEMBLY BILL 1X 26 (AB1X 26)
WHEREAS, the Community Development Commission of the City of West Covina
("Commission") is a community development commission organized and existing under and
pursuant to the California Community Development Commission Law (Part 1.7 of Division 24,
commencing with Section 34100, of the Health and Safety Code of the State of California) (the
"CDCL"); and
WHEREAS, the City Council of the City of West Covina ("City") approved and adopted
the Redevelopment Plans for the following Redevelopment Projects ("Redevelopment Plans")
covering certain properties within the City (the "Project Areas"):
1. On December 20, 1971 the West Covina City Council adopted the original Central
Business District Redevelopment Project Area by adoption of Ordinance No. 1180.
2. On July 14, 1975 the West Covina City Council adopted the original Eastland
Redevelopment Project Area by adoption of Ordinance No. 1269.
3. On December 21, 1993 the West Covina City Council approved the Merger of the
Central Business District and the Eastland Redevelopment Project Areas by adoption of
Ordinance No. 1927 and Ordinance No. 1928, which adopted the merged area as the West
Covina Redevelopment Project Area and added three non-contiguous areas to the merged project
area; and
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has
enacted and the Governor has signed, companion bills AB 1X 26 and AB 1X 27, requiring that
each redevelopment agency be dissolved unless the community that created it enacts a resolution
committing it to making certain payments; and
WHEREAS, on December 29, 2011, the California Supreme Court upheld AB1X 26,
which dissolved all of the redevelopment agencies in the State of California as of February 1,
2012, and struck down AB1X 27; and
WHEREAS, at a meeting of January 10, 2012, the City of West Covina took action to
designate itself as the Successor Agency and the Community Development Commission as the
Housing Successor Agency, as provided in California Health and Safety Code §§ 34173 and
34176; and
WHEREAS, Health and Safety Code Section 34177, which is set forth in Part 1.85,
requires a Successor Agency to prepare and submit an approved Recognized Obligation Payment
Schedule for the period from January 1, 2015 to June 30, 2015 to the State Department of
Finance by October 3, 2015, which must list the minimum amounts that must be paid by the
Successor Agency over that six (6) month period to fulfill its enforceable obligations during that
period; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the West
Covina Redevelopment Agency, reserves the right to appeal any determination of the California
Director of Finance or other entity regarding the propriety of this resolution as well as any future
determinations; and
WHEREAS, the West Covina City Council, acting as Successor Agency to the West
Covina Redevelopment Agency, intends to comply with the state-mandated obligations
established hereunder; and
WHEREAS, all other legal prerequisites to the adoption of this resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the West Covina City Council, acting as
Successor Agency to the West Covina Redevelopment Agency, as follows:
SECTION 1. The foregoing Recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
SECTION 2. The Recognized Obligation Payment Schedule "ROPS" attached hereto as
Attachment "2" is approved and the City Manager is authorized to transmit the same to the Los
Angeles County Auditor-Controller, the State Controller and the State Department of Finance in
accordance with Health and Safety Code Section 34177 subject to all reservations of rights and
contingencies set forth above.
SECTION 3. The Administrative Budget for the Successor Agency for the six-month
period January 1 — June 30, 2015, attached hereto as Attachment "3" is approved and the City
Manager is authorized to transmit the same to the Los Angeles County Auditor-Controller, the
State Controller and the State Department of Finance in accordance with Health and Safety Code
Section 34177 subject to all reservations of rights and contingencies set forth above.
SECTION 4. The City Manager or designee is authorized to take all actions necessary to
implement this Resolution, including without limitation, the posting of this Resolution and the
Recognized Obligation Payment Schedule on the City's website, and the provision of notice of
adoption of this Resolution and such Schedule to the County Auditor-Controller, the State
Controller and the State Department of Finance.
SECTION 5. The City Clerk shall certify as to the passage and adoption of this
Resolution, and it shall thereupon take effect and be in full force, except that this Resolution
shall not be effective during any period of time that the Stay remains effective.
APPROVED AND ADOPTED at a regular meeting of the City Council of the City of
West Covina this 16 th day of September, 2014.
Mayor Steve Herfert
ATTEST:
City Clerk Nickolas S. Lewis
I NICKOLAS S. LEWIS, CITY CLERK, of the City of West Covina do hereby certify that the
foregoing resolution was duly adopted by the West Covina City Council, acting as Successor
Agency to the West Covina Redevelopment Agency, at a meeting thereof held on the 16 th day of
September, 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Nickolas S. Lewis
APPROVED AS TO FORM:
City Attorney Kimberly Hall Barlow
Attachment 2
Recognized Obligation Payment Schedule (ROPS 14-15B) - ROPS Detail
January 1, 2015 through June 30, 2015
(Report Amounts in Whole Dollars)
A B c D E F G H I J K L m N 0 P
Item # Project Name / Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired
Funding Source
Six-Month Total
Non-Redevelopment Property Tax Trust Fund
(Non-RPTTF) RPTTF
Bond Proceeds
Reserve
Balance Other Funds Non-Admin Admin
271;391841. ..953;979: 4,254,307, 7f 127,629. .5.335:915'
1999 Tax Allocation Bonds Bonds Issued On or 11/1/1999 11/1/2029 US Bank Fund capital projects in Merged Area Merged 4,639,183 N 10.500 .....10,500
2002 Tax Allocation Bonds Bonds Issued On or
Before 12/31/10
6/1/2002 9/1/2022 US Bank Refund outstanding 1993 bonds Merged 9,383,888 N 181,718 •••18.1,718
2006 Lease Revenues Bonds Revenue Bonds
Issued On or Before
12/31/10
9/19/2006 6/1/2036 City of West Covina Reimburse City for BLD Debt Service Merg/Citywide 26,952,951 N 702,608 • .702,608 ... .
1998 Housing Set Aside Bonds Bonds Issued On or
Before 12/31/10
4/1/1998 9/1/2025 US Bank Acquisition and rehab of a housing
project
Merged 4,857,229 N 99,711 90,711. ..., .....
2001 Housing Set Aside Bonds Bonds Issued On or
Before 12/31/10
12/1/2001 9/1/2030 US Bank Development of a senior housing
project
Merged 9,223,954 N 160,690 100;600 , .:.,...::..
6 SERAF 2010 Housing Loan SERAF/ERAF 2/16/2010 6/30/2015 Housing Successor Agency Repay SERAF to the housing fund Merged 3,847,222 N 233,595 233,595 • • •
SERAF 2011 Housing Loan SERAF/ERAF 1/18/2011 6/30/2016 Housing Successor Agency Repay SERAF to the housing fund Merged 890,319 N 54,058 :..:.5.4,q5s
DDA - The Lakes OPA/DDA/Constructi
on
6/26/1987 6/30/2038 Gateway Crescent, LLC Allocated bond costs & maintenance
for park structure
Merged 940,000 N 60,000 60.000
CFD Tax Increment Pledge OPA/DDA/Constructi
on
6/26/1989 9/1/2022 Fashion Plaza CFD Tax Increment pledged to CFD Merged 12,237,595 N 739,500 739 500 . ,
0 CSS - CEO Remediation 10/19/2004 10/19/2054 Coastal Sage Scurb CFD CFD Assessment Merged 4,581,807 N 38,170 .:'.:38,170
11 Repay County Loan Third-Party Loans 6/19/1990 8/20/2021 County of Los Angeles Repay Loan of Deferred Tax Increment Merged 9,254,956 N
: 12 SA Administrative Budget Admin Costs 1/1/2014 6/30/2015 SA staff, Various Operations for both project areas MerpPri N 127,629 ;.::, :,I127,629
13 r - ntats
Y''' :: B forATfiai
1/ 0 , , _f WerCeM .et .
. 14 Anticipated/Existing Litigation Litigation 3/16/2006 6/30/2015 Squire Sanders & Dempsey Enforcement of judgments/obligations Merged 530,000 N 80,000 80,000
5 Anticipated/Existing Litigation Litigation 7/18/2000 6/30/2015 Alvarez-Glasman Colvin Enforcement of judgments/obligations Merged 82,500 N 37,500 37,500
16 Anticipated/Existing Litigation Litigation 10/22/2012 6/30/2015 Eminent Domain Law Group RDA property litigation Merged 472,400 N 472,400 472, 00
.: ...• 17 Anticipated/Existing Litigation Litigation 4/25/2007 6/30/2015 Hunsucker Goldstien RDA property litigation Merged 45,000 N 5,000 5,000
•.• 18 Project Administrative Costs Project Management
Costs
1/1/2014 6/30/2015 Various Project specific related costs Merged N
• 9 AB 1484 Auditing Fees Dissolution Audits 9/10/2012 6/30/2015 White Nelson Diehl Evans AS 1484 Auditing Fees Merged 217,500 N 15,000 ."..15,000
0 Oversight Board Legal Services Legal 10/4/2012 6/30/2015 Harper & Bums Oversight Board Legal Services Merged N
• 1 Successor Agency Legal Services Legal 7/18/2000 6/30/2015 Alvarez-Glasman Colvin Successor Agency Legal Services Merged N
22 Property Management Plan Professional
Services
1/1/2014 6/30/2015 TBD Long-Range Property Management
Plan per AB 1484
Merged 30,000 N 30,000 • ::',o,poo
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.28 1996 CFD Refunding Bonds Bonds Issued On or 7/1/1996
Before 12/31/10
9/1/2022 US Bank Fund Fashion Plaza Improvements Merged 36,513,300 N 843,750 843,750 ..:..... ,
29 1988 Lease Rev Refunding Bonds Revenue Bonds 8/1/1988
Issued On or Before
12/31/10
8/1/2018 Wells Fargo Bank Fund Lakes Parking Project Merged 2,747,758 N 110,229 - .110,229
Recognized Obligation Payment Schedule (ROPS 14-15B) - ROPS Detail
January 1, 2015 through June 30, 2015
(Report Amounts in Whole Dollars)
G 4 I J K L M N 0 P
Item # Project Name / Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired
Funding Source
Six-Month Total
Non-Redevelopment Property Tax Trust Fund
(Non-RPTTF) RPTTF
Bond Proceeds
Reserve
Balance Other Funds Non-Admin Admin
30 OPA - CFD OPA/DDA/Constructi
on
6/2611989 9/1/2022 Westfield Corporation CFD admin and developer repayment Merged 94,723,569 N
32
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Cit:V/eSliCNirr
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Reti.§y,Ci V JedatIblZi- !LIA c:
`1.6ffie, ...
-5 1998 - 2006 Bonds Bond Fiscal Agent Fees Merged 8,000 N 8,000 8,000
46 1998 - 2006 Bonds Fees 4/1/1998 9/1/2030 Wells Fargo Bank Bond Letter of Credit Fees Merged 29,040 N 29,040 .29,040
47 1998 - 2006 Bonds .. Fees 11/1/1999 11/1/2029 Wells Fargo Bank Bond Remarketing Fees Merged 2,400 N 2,040 2,040
48 1998 - 2006 Bonds Fees 11/1/1999 11/1/2029 Standard and Poors Bond Credit Agency Surveillance Fees Merged 2,000 N 2,000 2 000
9 'F•..0ticipat ...,1!Exis tin g, L;tiGE :,..111,LjOb.:1,.
Unfunded Liabilities'
s3
: e.d Pension Liabilities 7/1/1966 6/30/2015 CalPERS Payment tor untunaed pension
obligations
Merged 1,207,77 .44;732
51 Retirement Benefits Unfunded Liabilities
Professional
Services
9/19/2001
4/11201
3/6/2013
6/30/2015
•.. L _ ' '
6/30/2015
Former employee
:C1C6, V.k:..,Afeat-airt ",...'..,:f,,,,..0e,
Gonsalves and Sons
payment for retirement obligations
'Adji.itrribilif#11edeliqcktittebliRW : : , Retiremen F '!,:!....M714.:i
Consultant for ROPS and property
management plan
Merged
.Mii0r4:11
i:,,
Merged
1,158,470
,t1 ljjj
_
13,327
...54 Contractual 6ervices ROPS/Property
Plan
18,000 N 18,000 •18,000
55 BKK Landfill Closure Agreements Remediat ion 4/17/2001 6/30/2015 Various Landfill closure mitigation to approved
recreation use
Merged 45,578,311
s Contractual Services ROPS/Property
Plan
Professional
Services
3/6/2013 6/30/2015 Gonsalves and Sons Consultant for ROPS and property
management plan Jan-Jun 2013
Merged
57 Public Notices Property Dispositions 1/1/2014 6/30/2015 SVG Newspaper Notices of Proposed Property Transfer
Jul 2012-Jun 2013
Merged
58 Special Assessments on RDA-
owned parcels
Project Management
Costs
1/1/2014 6/30/2015 City of West Covina Citywide Lighting & Landscape
Maintenance District #2 Jul 2012-Jun
2013
Merged
59. Retirement Benefits Unfunded Liabilities 9/19/2001 6/30/2015 Former employee Payment for retirement obligations Feb
2012-Jun 2013
Merged
60 Special Assessments on RDA-
owned parcels
Project Management
Costs
1/1/2014 6/30/2015 City of West Covina Citywide Lighting & Landscape Maint
District #2
Merged 5,440 N 5,440 5440
,•'.61 AB 1484 Auditing Fees Dissolution Audits 9/10/2012 6/30/2015 White Nelson Diehl Evans AB 1484 Auditing Fees Jul-Dec 2012 Merged
Recognized Obligation Payment Schedule (ROPS 14-1513) - ROPS Detail
January 1, 2015 through June 30, 2015
(Report Amounts in Whole Dollars)
A B C D E F G H I J K L M N 0 P
Item # Project Name! Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired
Funding Source
Six-Month Total
Non-Redevelopment Property Tax Trust Fund
(Non-RPTTF) RPTTF
Bond Proceeds
Reserve
Balance Other Funds Non-Admin Admin
' 62 Anticipated/Existing Litigation Litigation 6/1/2013 6/30/2015 Blank Rome LLP Enforcement ofjudgments/obligations
(assisting Squire Sanders)
Merged 48,000 N 48,000 48,000
63 Anticipated/Existing Litigation Litigation 6/1/2013 6/30/2015 Blank Rome LLP Enforcement ofjudgments/obligations
Jan-Jun 2013
Merged N
4
•
Anticipated/Existing Litigation Litigation 6/1/2013 6/30/2015 Blank Rome LLP Enforcement ofjudgments/obligations
Jul-Dec 2012
Merged N
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o
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JJ6
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an J, 14201
N • 67 Project Administrative Costs Project Management
Costs
9/27/2011 6/30/2015 Rincon Environmental LLC Project specific related costs for
environmental land use consulting for
BKK Landfill
Merged 15,000 15,000 :15,000
8 City of West Covina vs. State of
California
Litigation 2/1/2011 6/30/2015 Alvarez-Glasman Colvin Enforcement ofjudgments/obligations Merged 50,000 N 50,000 50,000 „
.69 Caltrans Eminent Domain Litigation 2/1/2014 6/30/2015 Alvarez-Glasman Colvin Enforcement ofjudgments/obligations Merged 40,000 N 40,000 ' 40 000 , .,
0 Hasson Imports Partners Litigation 2/1/2014 6/30/2015 Jones & Mayer Enforcement ofjudgments/obligations Merged 30,000 N 30,000 30,000
.1 City of West Covina vs. State of
California
Litigation 2/1/2014 6/30/2015 Jones & Mayer Enforcement ofjudgments/obligations Merged 10,000 N 10,000 ,..- 1(1,000
•72 Caltrans Eminent Domain Litigation 2/1/2014 6/30/2015 Jones & Mayer Enforcement of judgments/obligations Merged 10,000 N 10,000 10,000
3 Loan Ageement Loan Ageement 9/16/2014 6/30/2015 City of West Covina Reimbursement of advanced SA
expenses
Merged 821,365 N 821,365 821,365 . .
74 Cooperative Agreement Cooperative
Agreement
9/16/2014 6/30/2015 City of West Covina Reimbursement of advanced SA
expenses
Merged 89,500 N 89,500 89,500 .. ..,
5 Anticipated/Existing Litigation Litigation 7/18/2000 6/30/2015 Alvarez-Glasman Colvin Enforcement of judgments/obligations -
January-June 2014
Merged 49,000 N 49,000 49,000
6 Loan Ageement Loan Ageement 9/16/2014 6/30/2015 City of West Covina Reimbursement of advanced SA
expenses (legal expenses)
Merged 48,413 N 48,413 48,413 ,,.
77 N
78 N
79 N
' 80 N
81 N -
82 N
83 N
, 84 N
85 N
'88 N
87 N
88 N
89 N
.90 N
- 91 N
2 N
3 N
4 N
' 95 N
Attachment 3
SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
January 1, 2015 to June 30, 2015
Annual January - June
Amount 2015
Salaries & Benefits
Maintenance & Operations
Consultants
Legal Fees
Phone
Cell Phone
Supplies
Meetings
Overhead
Liability Insurance
219,674
35,000
30,000
908
800
4,911
6,200
40,000
16,800
87,165
7,500
15,000
454
360
1,250
7,500
8,400
Subtotal
Total Budget 354,293 127,629
ATTACHMENT 1
COOPERATIVE AGREEMENT FOR ADVANCEMENT AND REIMBURSEMENT OF
ADMINISTRATIVE, OVERHEAD, AND OTHER EXPENSES
This COOPERATIVE AGREEMENT FOR ADVANCEMENT AND
REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD, AND OTHER EXPENSES
("Agreement") is entered into as of , 2014 by and between the City of West
Covina ("City") and the Successor Agency for the West Covina Redevelopment Agency
("Agency").
RECITALS:
A. The Agency is required to undertake a number of actions pursuant to Part 1.85 of
the Community Redevelopment Law (commencing with Health & Safety Code section 34170)
("Part 1.85"), including winding down the affairs of the former-West Covina Redevelopment
Agency ("former-RDA") pursuant to Health & Safety Code section 34177(h).
B. Pursuant to Health & Safety Code section 34171(d)(1)(F), contracts or
agreements necessary for the administration or operation of the Agency are enforceable
obligations under Part 1.85.
C. Pursuant to Health & Safety Code sections 34178(a) and 34180(h), with the
approval of its Oversight Board, the Successor Agency may enter into agreements with the City.
D. In administering and operating the Agency, the Agency has, is, and will utilize the
staff, facilities, and other resources of the City.
E. The City Manager of the City serves as the Executive Director of the Agency.
Similarly, other staff of the City serves and carries out the various functions of the Agency and
such activities require substantial time and resources with respect to the administration and
operation of the Agency.
F. By providing the Agency with the staff, facilities, services, and other resources of
the City, including, without limitation, consultants, legal counsel, office space, equipment,
supplies, and insurance, necessary to the administration and operations of the Agency, the City
has advanced and will continue to advance the cost of the forgoing to the Agency.
G. The parties desire to enter into this Agreement to acknowledge the forgoing
recitals and to provide an appropriate method of reimbursement of such advances by the Agency
to the City.
Cooperative Agreement
Page 1 of 4
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:
Section 1. The recitals set forth above are true and correct and are incorporated
herein by this reference.
Section 2. The City shall make available to the Agency its staff, facilities, services,
and other resources necessary to the administration and operations of the Agency. This includes,
without limitation, consultants, legal counsel, office space, equipment, supplies, and insurance.
Legal counsel shall include, but is not limited to, litigation services.
Section 3. The value of City staff, including all employees' retirement and other
benefits, facilities, services, and other resources of the City, including, without limitation, office
space, equipment, supplies, and insurance necessary to the administration of the Agency made,
and to be made, available to the Agency for each six-month fiscal period beginning with the
fiscal period fromJanuary 1, 2015 to June 30, 2015, and continuing thereafter until the Agency is
no longer in existence, determined in accordance with this Agreement hereof, shall constitute an
advance to the Agency by the City for each six-month fiscal period, to be repaid in accordance
with terms of this Agreement.
Section 4. Following the end of each six-month fiscal period, beginning with the
fiscal period January 1, 2015 to June 30, 2015, the City Manager shall prepare and present to the
Agency an invoice for the following:
The value of City staff, including all employee retirement and other
benefits, based on time records prepared by City staff, which shall
describe the time spent on matters related to the administration and
operations of the Agency.
The value of consultants and legal counsel based on invoices for services
devoted exclusively to matters related to the administration and operations
of the Agency. In listing the costs of legal counsel, the City shall clearly
describe the costs associated with litigation.
The rental value of office space and equipment made available to the
Agency by the City.
iv. The value of supplies, insurance, and other services and facilities provided
by City to Agency.
Cooperative Agreement
Page 2 of 4
Section 5. Within a reasonable time after the City submits an invoice to the Agency,
as described above, the Agency shall pay to the City the amount of the invoice from available
funds of the Agency. In the event that there are insufficient funds available to the Agency, any
unpaid amounts shall be carried over to the next six-month fiscal period.
Section 6. The parties hereto agree to take all appropriate steps and execute any
documents which may reasonably be necessary or convenient to implement the intent of this
Agreement.
Section 7. Each party shall maintain books and records regarding its duties pursuant
to this Agreement. Such books and records shall be available for inspection by the officers and
agents of the other party at all reasonable and mutually agreed upon times.
Section 8. This Agreement shall be governed by the laws of the State of California.
Venue for any disputes under this Agreement shall be in a court of competent jurisdiction within
Los Angeles County.
Section 9. If any provision of this Agreement is determined by a court of competent
jurisdiction to be unenforceable in any circumstance, such determination shall not affect the
validity or enforceability of the remaining terms and provisions hereof or of the offending
provision in any other circumstance. Notwithstanding the foregoing, if the value of this
Agreement, based upon the substantial benefit of the bargain for any party, is materially
impaired, which determination made by the presiding court or arbitrator of competent
jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good
faith negotiations.
Section 10. This Agreement will become effective upon approval of the Oversight
Board of the Agency and any other relevant overseeing agency.
Section 11. This Agreement may be amended by written agreement of both parties
hereto. Such amendment shall not be effective until the Oversight Board of the Agency, and any
other relevant overseeing agency, has approved this Agreement.
[Signatures on the following page]
Cooperative Agreement
Page 3 of 4
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their respective authorized officers, as of the date first above written.
CITY OF WEST COVINA SUCCESSOR AGENCY FOR THE WEST
COVINA REDEVELOPMENT AGENCY
By:
By:
Steve Herfert Steve Herfert
Mayor Agency Board Chairman
ATTEST: ATTEST:
By: By:
Sue Rush Sue Rush
Assistant City Clerk Assistant Agency Secretary
APPROVED AS TO FORM: APPROVED AS TO FORM:
By:
By:
Kimberly Hall Barlow Kimberly Hall Barlow
City Attorney Agency Counsel
Cooperative Agreement
Page 4 of 4
City of West Covina
Memorandum
AGENDA
TO: Chair and Board Members of the Successor Agency ITEM NO. SA3
FROM: Christopher J. Chung DATE September 16, 2014
Executive Director
BY: Kimberly Hall Barlow
Successor Agency Counsel
SUBJECT: COOPERATIVE AGREEMENT BETWEEN CITY AND SUCCESSOR
AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY
RECOMMENDATION:
It is recommended that the City Council, acting as the Successor Agency to the West Covina
Redevelopment Agency, approve the Cooperative Agreement between the City and Successor
Agency to the West Covina Redevelopment Agency providing for reimbursement of City costs
incurred on behalf of the Successor Agency.
DISCUSSION:
The former West Covina Redevelopment Agency was dissolved pursuant to state law on
February 1, 2012. In the wake of this dissolution, the City elected to perform the functions of the
"Successor Agency" to the former West Covina Redevelopment Agency as permitted by the
redevelopment dissolution statutes. Because the City elected to perform such functions, Health &
Safety Code section 34173(h) permits the City to loan funds to the Successor Agency for the
purpose covering the Successor Agency's "administrative costs, enforceable obligations, or
project-related expenses at the city's discretion." The purpose of this Cooperative Agreement is
to formalize the relationship permitted under the authority of Health & Safety Code section
34173(h) such that the City may be able to seek reimbursement for the costs it incurs on behalf of
the Successor Agency in performing and assisting in the performance of the Successor Agency's
obligation under the redevelopment dissolution statutes.
The Cooperative Agreement covers a variety of potential costs incurred by the City on behalf of
the Successor Agency. These costs range from the costs of City staff time to the use of City
equipment and to the use of the City's consultants and legal counsel in the carrying out of the
Successor Agency's obligations. This Cooperative Agreement would follow the Recognized
Obligation Payment Schedule six month cycle until the Successor Agency has fulfilled all of its
obligations and must be dissolved pursuant to the redevelopment dissolution statutes. The first
Recognized Obligation Payment Schedule it will affect is the one covering the period starting on
January 1, 2015 and ending on June 30, 2015.
If approved by the City Council and Successor Agency Board, this Cooperative Agreement must
then be approved by the Oversight Board, and then the California Department of Finance. The
current budgetary estimate to be reimbursed through the Cooperative Agreement is
approximately $89,500 for six-month period in order to enable the City to fully recover all cost
incurred by the City on behalf of the Successor Agency.
FISCAL IMPACT:
The City Attorney and Successor Agency Counsel have prepared the proposed cooperation
agreement and this report.
Prepared by:
Approved via Email
Kimberly Hall Barlow
Successor Agency Counsel
Reviewed and Approved by:
iL
Mike Lee
Assistant City Manager/Community
Development Commission Director
Attachment No. 1 — Cooperative Agreement