Loading...
08-21-2012 - Successor Agency Treasurers Report for March 2012 - Item SA1 (2).pdf, A r-)C--)/C,nD Prepared by: Clara W ng Interim Finance Direc or Reviewed pprovel y: Thomas Bachman Asst. City Manager/Finance Director City of West Covina Memorandum AGENDA Item No. Date TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman Assistant City Manager/Finance Director SUBJECT: SA TREASURER'S REPORT FOR MARCH 2012 SA1 August 21, 2012 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance with the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Council, acting as the Successor Agency to the West Covina Redevelopment Agency on a monthly basis. The March Report shows the Agency's portfolio decreased by $299,626 from $4,814,763 on February 29, 2012, to $4,515,137 on March 31, 2012. The Agency's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAIF) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. Approximately 51 percent of the portfolio is on deposit in LACIP and the remaining 49 percent of available cash is on deposit in the checking account. In addition the Successor Agency has $2,968,138 invested with the City's pooled cash. Bond Detail Report: The March report also includes a Bond Detail Report. This report shows how Fiscal Agents are investing Successor Agency and Public Financing Authority cash, which they hold to service various debts. This information is reported to the City Council quarterly. EARNED INTEREST YIELD THIS PERIOD: 0.810% SIX-MONTH TREASURY BILL YIELD: 0.150% PREPARED BY: ( A Clara Wong, Interim Finar Director SUCCESSOR AGENCY STATEMENT OF TREASURER'S ACCOUNTABILITY March 31, 2012 1,483.75 6,544.22 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING SUB-TOTAL OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL TOTAL February 29 2,492,978.10 2,492,978.10 835.61 2,320,949.72 2,321,785.33 4,814,763.43 WITHDRAWALS 306,170.69 306,170.69 306,170.69 March 31 2,191,867.88 2,191,867.88 835.61 2,322,433.47 4,515,136.96 DEPOSITS 5,060.47 5,060.47 1,483.75 0.00 2,323,269.08 *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio plus the recognized obligation payment schedules (ROPS) for January to June of 2012 and July to December of 2012 approved by the State Department of Finance on July 9, 2012 provide sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of March 31, 2012. hman, Assistant City Manager/Finance Director Reserve Series A Reserve Series A Reserve Series A Bond Bond Reserve Series B Reserve Series B Reserve Series B First American Funds, Inc. U.S. Trees & Agency First American Funds, Inc. First American Funds, Inc. U.S. Tress & Agency First American Trees Oblig Cl d Corp Trust Cash First American Treas Oblig Cl d Corp Trust FHLB Cash First American Treas Oblig Cl d Corp Trust FHLB Cash UC Fund UC Fund 1999 Tax Allocation Bonds 1999 Tax Allocation Bonds GRAND TOTALS 2,337,894.30 2,355,375.98 2,384,417.48 Maturity Date Original Cost Shares/Face Amount Market Value Rate 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B Description of Bond Type of Bond WEST COVINA SUCCESSOR AGENCY BOND DETAIL REPORT March 31, 2012 Type of Investment Description of Issuer 1.390 1.390 0.03 0.00 0.03 3,774.90 346,987.00 0.00 350,761.90 1,411.00 102,055.00 0.00 103,466.00 114,680.87 0.00 114,680.87 194.59 0.00 194.59 569,103.39 0.00 0.00 743.86 743.86 0.00 0.00 0.00 743.86 0.03 0.00 0.03 3,774.90 340,812.60 0.00 344,587.50 1,411.00 100,239.00 0.00 101,650.00 114,680.87 0.00 114,680.87 194.59 0.00 194.59 561,112.99 0.00 0.00 743.86 743.86 1.00 0.00 1.00 744.86 0.03 0.00 0.03 3,774.90 340,000.00 0.00 343,774.90 1,411.00 100,000.00 0.00 101,411.00 114,680.87 0.00 114,680.87 194.59 0.00 194.59 560,061.39 0.00 0.00 743.86 743.86 1.00 0.00 1.00 744.86 Open Open 5/30/2014 Open 5/30/2014 Direct Pay LOC #NZS668499 Cash First American Trees Oblig CI d Corp trust FHLMC DISCOUNT NOTE Cash First American Treas Oblig Cl d Corp Trust Cash First American Treas Oblig Cl d Corp Trust Cash First American Government Obligation Fd CL D FHLB Cash Wells Fargo Bank, NA First American Funds, Inc. U.S. Trees & Agency First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. U.S. Tress & Agency 10/13/2013 Ending Balances 5.100 Open Open 1.390 352.88 799,656.00 0.00 800,008.88 50.43 0.00 50.43 800,059.31 0.02 0.00 0.00 0.02 4,166.40 1,010,344.50 • 0.00 1,014,510.90 1,014,510.92 352.88 800,000.00 0.00 - 800,352.88 50.43 0.00 50.43 800,403.31 0.02 0.00 0.00 0.02 4,166.40 990,000.00 0.00 994,166.40 994,166.42 352.88 779,100.62 0.00 779,453.50 50.43 0.00 50.43 779,503.93 0.02 0.00 0.00 0.02 4,166.40 992,366.10 0.00 996,532.50 996,632.52 Open 9/4/2012 Open Ending Balances 5/30/2014 Ending Balances Fl 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds Reserve Account Reserve Account Reserve Account Project Fund Project Fund Special Fund Special Fund Special Fund Reserve Fund Reserve Fund Reserve Fund *Market valuations have been provided by U.S. Bank Corporate Trust Services --- Reviewel Approved y: Thomas Bachman lD30H.-nnnn•• City of West Covina Memorandum AGENDA Item No. SA2 Date August 21, 2012 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman Assistant City Manager/Finance Director SUBJECT: SA TREASURER'S REPORT FOR APRIL 2012 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance with the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Council, acting as the Successor Agency to the West Covina Redevelopment Agency on a monthly basis. The April Report shows the Agency's portfolio decreased by $135,112 from $4,515,137 on March 31, 2012, to $4,380,025 on April 30, 2012. The Agency's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAIF) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. Approximately 53 percent of the portfolio is on deposit in LACIP and the remaining 47 percent of available cash is on deposit in the checking account. In addition the Successor Agency has $3,063,800 invested with the City's pooled cash. /&. 0_ (AD010 Prepared by: Clara Won*, EARNED INTEREST YIELD THIS PERIOD: 0.810% SIX-MONTH TREASURY BILL YIELD: 0.150% PREPARED BY: ....41101111111IP hman, 'ssi ant City Manager/Finance Director SUCCESSOR AGENCY STATEMENT OF TREASURER'S ACCOUNTABILITY April 30, 2012 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING SUB-TOTAL OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL TOTAL March 31 2,191,867.88 2,191,867.88 835.61 2,322,433.47 2,323,269.08 4,515,136.96 DEPOSITS 4,285.24 4,285.24 1,188.74 1,749.12 2,937.86 7,223.10 WITHDRAWALS 142,335.03 142,335.03 142,335.03 April 30 2,053,818.09 2,053,818.09 2,024.35 2,324,182.59 4,380,025.03 0.00 2,326,206.94 *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio plus the recognized obligation payment schedules (ROPS) for January to June of 2012 and July to December of 2012 approved by the State Department of Finance on July 9, 2012 provide sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of April 30, 2012. Prepared by: Clara Woikg Interim Finance Director Asst. City Manager/Finance Director City of West Covina Memorandum AGENDA SA3 August 21,2012 Item No. Date TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman Assistant City Manager/Finance Director SUBJECT: SA TREASURER'S REPORT FOR MAY 2012 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance with the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Council, acting as the Successor Agency to the West Covina Redevelopment Agency on a monthly basis. The May Report shows the Agency's portfolio decreased by $99,300 from $4,380,025 on April 30, 2012, to $4,280,725 on May 31, 2012. The Agency's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAW) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. Approximately 54 percent of the portfolio is on deposit in LACIP and the remaining 46 percent of available cash is on deposit in the checking account. In addition the Successor Agency has $3,109,608 invested with the City's pooled cash. PREPARED BY: – • i; — Clara Wong, Interim Finance Diylector .4/ 111.111"r'rr trii:11,:ton, City Treasurer SUCCESSOR AGENCY STATEMENT OF TREASURER'S ACCOUNTABILITY May 31, 2012 DEPOSITS 4,352.97 4,352.97 1,402.89 1,402.89 5,755.86 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING SUB-TOTAL OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL TOTAL April 30 2,053,818.09 2,053,818.09 2,024.35 2,324,182.59 2,326,206.94 4,380,025.03 WITHDRAWALS 105,055.81 105,055.81 105,055.81 May 31 1,953,115.25 1,953,115.25 2,024.35 2,325,585.48 4,280,725.08 0.00 2,327,609.83 *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. • The investment portfolio plus the recognized obligation payment schedules (ROPS) for January to June of 2012 and July to December of 2012 approved by the State Department of. Finance on July 9, 2012 provide sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of May 31, 2012. EARNED INTEREST YIELD THIS PERIOD: 0.760% SIX-MONTH TREASURY BILL YIELD: 0.150% Reviewed/A-pproved rhomas Bachman Asst. City Manager/Finance Director City of West Covina Memorandum AGENDA Item No. SA4 Date August 21, 2012 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman Assistant City Manager/Finance Director SUBJECT: SA TREASURER'S REPORT FOR JUNE 2012 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance with the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Council, acting as the Successor Agency to the West Covina Redevelopment Agency on a monthly basis. The June Report shows the Agency's portfolio increased by $5,088,501 from $4,280,725 on May 31, 2012, to $9,369,226 on June 30, 2012. The Agency's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAIF) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. Approximately 99 percent of the portfolio is on deposit in LACIP and the remaining 1 percent of available cash is on deposit in the checking account. In addition the Successor Agency has $566,299 invested with the City's pooled cash. Bond Detail Report: The June report also includes a Bond Detail Report. This report shows how Fiscal Agents are investing Successor Agency and Public Financing Authority cash, which they hold to service various debts. This information is reported to the City Council quarterly. UJC-D-t4 Prepa—re-ci by: Clara Wong( Interim Finance Director EARNED INTEREST YIELD THIS PERIOD: 0.860% SIX-MONTH TREASURY BILL YIELD: 0.160% PREPARED BY: Wiian V. Smiffison, City Treasurer SUCCESSOR AGENCY STATEMENT OF TREASURER'S ACCOUNTABILITY' JUNE 30, 2012 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING SUB-TOTAL OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) May 31 DEPOSITS WITHDRAWALS June 30 1,953,115.25 1,953,115.25 2,024.35 2,325,585.48 6,683,812.39 6,683,812.39 7,001,107.28 8,596,418.39 8,596,418.39 40,509.25 40,509.25 2,024.35 9,326,692.76 SUB-TOTAL 2,327,609.83 7,001,107.28 0.00 9,328,717.11 TOTAL 4,280,725.08 13,684,919.67 8,596,418.39 9,369,226.36 *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio plus the recognized obligation payment schedules (ROPS) for January. to June of 2012 and July to December of 2012 approved by the State Department of Finance on July 9, 2012 provide sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of June 30, 2012. 'Market valuations have been provided by U.S. Bank Corporate Trust Services GRAND TOTALS 2,347,303.61 2,364,785.29 2,392,685.99 Type of Bond WEST COVINA SUCCESSOR AGENCY BOND DETAIL REPORT June 30, 2012 Description of Issuer Type of Investment UC Fund L/C Fund Direct Pay LOC #NZS668499 Cash Wells Fargo Bank, NA Reserve Account Reserve Account Reserve Account Project Fund Project Fund First American Funds, Inc. U.S. Tress & Agency First American Funds, Inc. First American Trees Oblig Cl d Corp Trust FHLMC DISCOUNT NOTE Cash • First American Tress Oblig Cl d Corp Trust Cash Special Fund Special Fund Special Fund First American Trees Oblig Cl d Corp Trust Cash First American Funds, Inc. Reserve Fund Reserve Fund Reserve Fund First American Government Obligation Fd CL D FHLB Cash First American Funds, Inc. U.S. Tress & Agency Bond Bond Interest Series A Interest Series A Interest Series B Interest Series B Reserve Series A Reserve Series A Reserve Series A Reserve Series B Reserve Series B Reserve Series B Project Fund Series B Project Fund Series B Principal Account Principal Account First American Tress Oblig Cl d Corp Trust Cash First American Treas Oblig Cl d Corp Trust Cash First American Tress Oblig Cl d Corp Trust Cash First American Tress Oblig Cl d Corp Trust FHLB Cash First American Tress Oblig Cl d Corp Trust FHLB Cash First American Tress Oblig Cl d Corp Trust Cash First American Tress Oblig Cl d Corp Trust Cash First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. U.S. Tress & Agency First American Funds, Inc. U.S. Tress & Agency First American Funds, Inc. First American Funds, Inc. Description of Bond 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1998 Housing Set-Aside Bonds Series A, B 1999 Tax Allocation Bonds 1999 Tax Allocation Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2001 RDA Housing Set-Aside T/A Rev Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds 2002 RDA T/A Revenue Refunding Bonds Maturity Date Original Cost Shares/Face Amount Market Value Rate 1.390 1.390 3,774.90 346,660.60 0.00 350,435.50 1,411.00 101,959.00 0.00 103,370.00 5.100 352.88 799,888.00 0.00 800,240.88 0.03 0.00 0.03 2,414.00 0.00 2,414.00 710.00 0.00 710.00 3,774.90 340,812.60 0.00 344,587.50 1,411.00 100,239.00 0.00 101,650.00 114,680.87 0.00 ru-Rircru • 194.59 0.00 564,236.99 1.00 0.00 1.00 0.03 0.00 2,414.00 0.00 2,414.00 710.00 0.00 710.00 114,680.87 0.00 114,680.87 194.59 0.00 571,804.99 0.00 0.00 0.00 0.00 Ending Balances . Open 9/4/2012 Open Ending Balances Open Open 5/30/2014 Ending Balances 1.00 352.88 779,100.62 0.00 779,453.50 50.43 0.00 50.43 779,503.93 7,029.19 0.00 0.00 7,029.19 4,166.40 992,366.10 0.00 996,532.50 1,003,561.69 0.03 0.00 2,414.00 0.00 2,414.00 710.00 0.00 710.00 3,774.90 340,000.00 0.00 343,774.90 1,411.00 100,000.00 0.00 101,411.00 114,680.87 0.00 114,680.87 194.59 0.00 194.59 563,185.39 1.00 0.00 1.00 1.00 352.88 800,000.00 0.00 800,352.88 50.43 0.00 50.43 800,403.31 7,029.19 0.00 0.00 7,029.19 4,166.40 990,000.00 0.00 994,166.40 1,001,195.59 50.43 0.00 50.43 800,291.31 7,029.19 0.00 0.00 7,029.19 4,166.40 1,009,394.10 0.00 1,013,560.50 1,020,589.69 1.390 Open Open Open Open 5/30/2014 Open 5/30/2014 Open Open Ending Balances 10/13/2013 City of West Covina Memorandum AGENDA Item: SA-5 TO: Andrew G. Pasmant, City Manager Date: August 21, 2012 and City Council FROM: Thomas Bachman Assistant City Manager/Finance Director SUBJECT: APPROVAL AND TRANSMITTAL OF A REVISED ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, AND A REVISED SCHEDULE OF DISTRIBUTION OF FUTURE TAX REVENUES (RECOGNIZED OBLIGATIONS PAYMENT SCHEDULES "ROPS") PURSUANT . TO AB1X - 26 FOR THE PERIOD OF JANUARY 1 — JUNE 30, 2013 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, adopt the attached 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 ADMINISTRATTVE BUDGET FOR THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, AND SCHEDULES OF DISTRIBUTION OF FUTURE TAX REVENUES (RECOGNIZED OBLIGATIONS PAYMENT SCHEDULES "ROPS") FOR THE PERIOD JANUARY 1 — JUNE 30, 2013, PURSUANT TO ASSEMBLY BILL 1X 26 (AB1X 26) DISCUSSION: The Successor Agency is required to file a Schedule of Distribution of Future Tax Revenues "ROPS" schedule 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 2) lists all amounts that will be paid in the period January 1 through June 30, 2013. 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 their scheduled meeting on August 2, 2012. Once the ROPS is approved by the Oversight Board, it then must be sent to the State Department of Finance "DOF" by September 1, 2012. DOF holds final approval authority of the items listed on the ROPS and directs the Los Angeles County Auditor- Controller on which items to distribute tax increment funds for to the Successor Agency. The Successor Agency is also required to adopt an administrative budget for each upcoming six-month period. Attachment 3 to this report is the administrative budget for the Successor Agency for the period of January — June 2013. The January — June administrative budget is 1/2 of the fiscal year 2012-13 annual projected costs. This budget is to be funded by the administrative allowance, which is equal to an amount, which is the greater of 3% of the enforceable obligations, or $250,000 annually. Any administrative costs above this administrative allowance will be absorbed by the City. The Successor Agency previously approved a ROPS for the January — June 2013 period at their August 1, 2012, meeting that was submitted to the Oversight Board on August 2, 2012. The Oversight Board discussed the ROPS but did not take action on it and instead held it over until its next meeting, which is scheduled for August 23, 2012. The attached ROPS is now presented on the updated DOF form, which was not available when the previous version was approved by the Successor Agency. This ROPS contains the same items as the previous version, although some amounts have been changed to reflect updated assumptions. The new DOF form also now contains a reconciliation of the January — June 2012 ROPS, which compares actual to estimates, and a summary and notes pages. The ROPS also includes a change to the terms of the loan from the former redevelopment agency to Los Angeles County. Currently, the outstanding is estimated to by $8,274,862. The loan is repaid via a formula based on the amount of tax increment collected in the Eastland Amendment Project Area and accrues interest at 7%. Based on that formula and interest rate, the projected repayment is estimated at $1.35 million in the current fiscal and grows to about $1.55 million before being finally repaid in 2019-20. The proposed change on the attached ROPS would set the repayment over an eight-year period with equal principal payments of $1,034,358 each year and interest accruals paid at the investment earnings rate of the Local Agency Investment Fund (LAIF). The LAIF rate was selected because that is consistent with the rate for repayment. to cities of loans to former redevelopment agencies that was established by AB 1484. This proposed change in terms would save the Successor almost $300,000 in the first year and over $2 million over the eight-year term, which amount would then be distributed to the taxing entities including the City and the county. Finally, the ROPS include items that were previously denied by the Department of Finance. AB 1484 specifically identifies litigation costs related to former redevelopment agency claims, judgments and assets, and legal costs and contractual agreements necessary for the wind down of the former redevelopment agency, as enforceable obligations. Additionally, recent guidance from DOF states that "agencies requesting reconsideration of previously denied obligations may include them in the January through June 2013 period ROPS." As a result, lines 30 — 39 on the attached ROPS include amounts for litigation and legal expenses that were denied on the February — June period ROPS and the July— December 2012 period ROPS. Lines 40 - 43 include City loans that were denied by DOF on prior ROPS and which have been appealed to DOF by the City. The total of all items submitted on this ROPS is $8,632,313, which includes items submitted for reconsideration from previous ROPS in the amount of $3,142,565 and $5,489,748 for current period (January — June 2013) ROPS. 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. FISCAL IMPACT: The City, as successor agency, cannot receive or spend any funds unless the amounts are listed on a Recognized Obligations 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, that amount will have to be absorbed by the City. Preparecrby: Tom Bachman Assistant City Manager/Finance Director Attachments: No. 1 — Resolution No. 2 — Recognized Obligation Payment Schedule (ROPS No. 3— Successor Agency Administrative Budget 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 SCHEDULES OF DISTRIBUTION OF FUTURE TAX REVENUES (RECOGNIZED OBLIGATIONS PAYMENT SCHEDULES "ROPS") FOR THE PERIOD JANUARY 1 — JUNE 30, 2013, 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, specifically, AB 1X 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, additionally, AB 1X 26 which eliminates redevelopment agencies also requires all Agencies to wind-down their affairs unless the Agencies are extended through compliance with the requirements of AB 1X 27; and WHEREAS, the California Supreme Court on August 11, 2011 issued a partial stay ("Stay") on the operative effects of ABX1 26 in the case of California Redevelopment Association, et al. v. Ana Matsonantos, et al. Case No. S194861. 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 34169(h), which is set forth in Part 1.8, requires a Successor Agency to prepare and submit an approved Recognized Obligation Payment Schedule for the period from January 1, 2013 to June 30, 2013 to the • State Department of Finance by September 1, 2012, 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, while the West Covina City Council, acting as Successor 'Agency to the West Covina Redevelopment Agency, currently 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 Schedule of Distribution of Future Tax Revenues (Recognized Obligations 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 34169 subject to all reservations of rights and contingencies set forth above. SECTION 3. The Administrative Budgets for the Successor for the six-month period January — June 2013, 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 34169 subject to all reservations of rights and contingencies set forth above. SECTION 5. 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 6. 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 21 st day of August 2012. Mayor Mike Touhey ATTEST: Assistant City Clerk Susan Rush I SUSAN RUSH, ASSISTANT 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 21 st day of August 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Assistant City Clerk Susan Rush APPROVED AS TO FORM: City Attorney Name of Successor Agency: City of West Covina Successor Agency County: Los Angeles Oversight Board Approval Date: RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS III) January 1, 2013 through June 30, 2013 Item # . Project Name / Debt Obligation Contract/Agreement Execution Date Contract/Agreement Termination Date Payee • Description/Project Scope Proiect Area Total Outstanding Debt or Obligation Total Due During Fiscal Year 201 2-1 3 Funding Source . •LMIHF Bond Proceeds Reserve Balance Admin Allowance RPTTF Other Six-Month Total 5 350,165,823 $ 18,286,674 6 258,969 5 8,632,313 $ 1,013,340 5 9,904,622 1999 Tax Allocation Bonds 11/1/1999 11/1/2029 US Bank Fund capital projects in Merged Area Merged 5,622,275 208,600 36,600 36,600 2 2002 Tax Allocation Bonds 6/1/2002 9/1/2022 US Bank Refund outstanding 1993 bonds Merged 11,371,110 989,272 211,536 211,536 2006 Lease Revenues Bonds 9/19/2006 6/1/2036 City of West Covina Reimburse City for BLD Debt Service Merg/Citywide 29,119,269 1,126,990 563,490 - 563,490 4 1998 Housing Set Aside Bonds 4/1/1998 9/1/2025 US Bank Acquisition and rehab of a housing proj Merged 5,737,595 438,907 115,179 115,179 5 2001 Housing Set Aside Bonds 12/1/2001 9/1/2030 US Bank Development of a senior housing proj Merged 10,779,345 767,935 183,218 183,218 6 SERAF 2010 Housing Loan 2/16/2010 6/30/2015 Housing Successor Agency Repay SERAF to the housing fund Merged 4,080,818 - - 7 SERAF 2011 Housing Loan 1/18/2011 6/30/2016 Housing Successor Agency Repay SERAF to the housing fund Merged 943,085 _ - 8 DDA - The Lakes 6/26/1987 6/30/2038 Various Allocated bond costs & maint for park structure Merged 1,440,000 215,000 60,000 60,000 9 CFD Tax Increment Pledge 6/26/1989 9/1/2022 Fashion Plaza CFD Tax Increment pledged fto CFD Merged 15,846,352 1,840,000 1,840,000 1,840,000 10 CSS - CFD 10/19/2004 10/19/1954 Coastal Sage Scurb CFD CFD Assessment Merged 4,656,641 74,837 37,418 37,418 11 Repay County Loan 6/19/1990 8/20/2021 County of Los Angeles Repay Loan of Defered Tax Increment Merged 8,626,543 1,908,553 558,553 . 558,553 12 SA Adminstrative Budget ongoing ongoing Various Operations for both prblect areas Merged 16,520,339 484,361 258,969 258,969 13 Anticipated/Existing Litigation 3/16/2006 ongoing Squire Sanders & Dempsey Enforcement of judgments/obligations Merged 3,456,434 600,000 600,000 600,000' 14 Anticipated/Existing Litigation ongoing Alvarez-Glasman Colvin Enforcement of judgments/obligations Merged 150,000 40,000 40,000 40,000 15 Anticipated/Existing Litigation ongoing Eminent Domain Law Group RDA property litigation Merged 300,000 50,000 50,000 50,000 16 Anticipated/Existing Litigation ongoing Hunsucker Goldstien RDA property litigation Merged 100,000 25,000 25,000 - 25,000 17 Project Administrative Costs ongoing • ongoing Various Project specific related costs Merged ' 350,000 70,000 35,000 35,000 18 AB 1484 Auditing Fees TBD ongoing White Nelson Diehl Evans AB 1464 Auditing Fees Merged 297,500 35,000 35,000 35,000 19 Oversight Board Legal Services TBD ongoing TED Oversight Board Legal Services Merged 50,000 20,000 20,000 20,000 20 Successor Agency Legal Services ongoing Alvarez-Glasman Colvin Successor Agency Legal Services Merged 300,000 60,000 30,000 30,000 21 Property Management Plan TED TED TBD Long-Range Property Management Plan per AB 1484 Merged 184,600 184,600 184,600 184,600 22 City Note - Administration 8/9/1971 6/30/2025 City of West Covina Repay City for admin & construction Merged 12,859,463 730,744 730,744 730,744' 23 City Note - CIP 2/28/1972 6/30/2025 City of West Covina Repay City for capital projects Merged 2,252,898 133,410 133,410 133,410 24 City Note Revolving 12/16/1985 6/30/2025 City of West Covina Repay City for revolving credit Merged 4,824,791 - - 25 Sales Tax Reimbursement 7/25/2005 6/30/2025 City of West Covina Reimburse City for CFD Sales Tax Merged 22,856,769 - - 26 Golf Course Agreement 6/21/2011 ongoing Various Golf Course Implementation Agreement Merged 45,000,000 - 27 1996 CFD Refunding Bonds 7/1/1996 9/1/2022 US Bank Fund Fashion Plaza Improvements Merged 44,687,400 3,774,000 975,600 975,600 28 1988 Lease Rev Refunding Bonds 8/1/1988 8/1/2018 Wells Fargo Bank Fund Lakes Parking Project Merged 3,915,885 461,900 37,740 37,740' 29 OPA - CFD 6/26/1989 9/1/2022 Westfield Corporation CFD admin and developer repayment Merged 93,836,711 885,000 - PREVIOUSLY DENIED OBLIGATIONS SUBMITTED FOR RECONSIDERATION 30 Anticipated/Existing Litigation 3/16/2006 ongoing Squire Sanders & Dempsey Enforcement of judgments/obligations Feb-Jun 2012 Merged see #13 above 600,000 _ 600,000 600,000 31 Anticipated/Existing Litigation 3/16/2006 ongoing Squire Sanders & Dempsey Enforcement of judgments/obligations Jul-Dec 2012 Merged see #13 above 600,000 600,000 600,000 32 Anticipated/Existing Litigation 3/16/2006 ongoing Alvarez-Glasman Colvin Enforcement of judgments/obligations Feb-Jun 2012 • Merged see #14 above 22,204 22,204 22,204 33 Anticipated/Existing Litigation 3/16/2006 ongoing Alvarez-Glasman Colvin Enforcement of judgments/obligations Jul-Dec 2012 Merged see #14 above 35,000 35,000 ' .;.:<:35;000 34 Anticipated/Existing Litigation ongoing Eminent Domain Law Group RDA property litigation: Feb-Jun 2012 Merged see #15 above 7,946 7,946 7,946 35 Anticipated/Existing Litigation ongoing Eminent Domain Law Group RDA property litigation: Jul-Dec 2012 Merged see #15 above 50,000 50,000 50,000 36 Anticipated/Existing Litigation ongoing Hunsucker Goldstien RDA property litigation: Feb-Jun 2012 Merged see #16 above 7,161 7,161 7,161 37 Anticipated/Existing Litigation ongoing Hunsucker Goldstien RDA property litigation: Jul-Dec 2012 Merged see #16 above 25,000 25,000 25,000 38 Successor Agency Legal Services ongoing Alvarez-Glasman Colvin* Successor Agency Legal Services: Feb-Jun 2012 Merged see #20 above 36,946 36,946 36,946 39 Successor Agency Legal Services ongoing Alvarez-Glasman Colvin Successor Agency Legal Services: Jul-Dec 2012 Merged see #20 above 30,000 30,000 30,000 40 City Note - Administration 8/9/1971 6/30/2025 City of West Covina Repay City for admin & construction: Feb-Jun 2012 ' Merged see #22 above' 730,744 730,744 730,744 41 City Note -Administration 8/9/1971 6/30/2025 City of West Covina Repay City for admin & construction: Jul-Dec 2012 Merged see #22 above 730,744 730,744 730,744 42 City Note - CIP 2/28/1972 6/30/2025 City of West Covina Repay City for capital projects: Feb-Jun 2012 Merged see #23 above 133,410 ' 133,410 133,410 43 City Note - CIP 2/28/1972 6/30/2025 City of West Covina Repay City for capital projects: Jul Dec 2012 Merged see #23 above 133,410 133,410 133,410 Attachment 3 Successor Agency to the West Covina Redevelopment Agency Administrative Budget Used for Jan. - June 2013 ROPS Jan - June 2013 Salaries & Benefits M & 0 from CDC Staff: Appraisals Escrow & Title Consultants Copying Subtotal Other M & 0 costs not included above: A & 0 Liability Insurance Phone • Cell Phone Pooled Car usage Fuel Vehicle Maintenance Subtotal Total Non-Personnel Costs 166,740 10,000 12,500 7,500 1,250 31,250 32,467 8,400 454 360 120 990 1,400 44,191 75,441 Total Budget 242,181 ROPS 2013 Jan-JuneAdmin Budget8/16/2012 City of West Covina Memorandum AGENDA ITEM.NO . SA6 DATE August 21, 2012 TO: Andrew G. Pasmant, Executive Director and the Successor Agency of the West Covina Redevelopment Agency FROM: Christopher J. Chung Community Development Commission Director SUBJECT: APPROVAL OF LEGAL SERVICES FOR THE WEST COVINA OVERSIGHT BOARD RECOMMENDATION: It is recommended that the City Council acting as the Successor Agency of 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 THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, ACCEPTING THE ACTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY APPROVING A RETAINER AGREEMENT WITH THE LAW FIRM OF HARPER & BURNS TO PROVIDE GENERAL COUNSEL SERVICE FOR THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE WEST COVINA REDEVELOPMENT AGENCY DISCUSSION: Due to the nature of business of the Oversight Board and their function as authorized under AB 1X 26 and AB 1484, the City Council acting as the Successor Agency of the West Covina Redevelopment Agency is to consider the approval of a resolution (Attachment No. 1) accepting the recommendation of the Oversight Board Ad Hoc Committee ("Ad Hoc Committee") and approving the "Agreement For Attorney Services" (Attachment No. 2) with the Law Offices of Harper and Burns, LLP to provide general counsel services for the Oversight Board. Such general counsel shall be independent from legal services that the Successor Agency receives from its City Attorney. At the direction of the Oversight Board to the Successor Agency of the West Covina Redevelopment Agency ("Oversight Board"), Successor Agency staff released a Request For Qualifications ("RFQ") for legal services to represent the Oversight Board. Chairperson Carrie Sutkin, Vice-Chairperson Mike Touhey and Board Member Mike Lee were selected to serve on an Ad Hoc Committee to review the RFQ responses and to interview the selected law firms. At the August 2, 2012 Oversight Board meeting, staff presented the five (5) proposals that were received and the Oversight Board directed the Ad Hoc Committee to proceed with review of proposals and interview of selected law firms. Ad Hoc Committee invited two (2) law firms, Colantuno & Levin, PC and the Law Offices of Harper and Bums, LLP to be interviewed on August 8, 2012. Carrie &Akin was unable to attend the August 8, 2012 interviews and Oversight Board Member Michael Gregoryk served as a replacement. The Ad Hoc Committee selected the Law Offices of Harper and Burns, LLP to represent the Oversight Board based on hourly rate (lowest), experience and no known conflict of interest (has not worked for County of LA, State, affected taxing entities or the City). The proposal from the Law Offices of Harper and Burns, LLP is attached as Attachment No. 3 and a matrix of all proposals submitted is attached as Attachment No. 4. legal services agreement Andrew G. Pasmant, City Manager and the City Council August 21, 2012 The retention of the law firm for the Oversight Board is also subject to the approval (by City, Successor Agency and Oversight Board) of a Cooperation Agreement between the City and Successor Agency and inclusion of the Cooperation Agreement and Oversight Board Legal Services within the Recognized Obligation Payment Schedule ("ROPS"). As the ROPS for this fiscal year have already been approved and the Department of Finance is not allowing any revisions, a Cooperation Agreement is needed to provide a loan from the City to the Successor Agency whereby the City will advance payments to the Successor Agency for legal services for July 2012 to December 2012 to be reimbursed under the Recognized Obligation Payment Schedule for January 1, 2013 to June 2013. FISCAL IMPACT: The cost for general counsel for the Oversight Board will be an obligation of the former redevelopment agency and is reflected in the revised Recognized Obligation Payment Schedule for January 1, 2013 to June 2013 for an estimated annual cost of $10,000 and the Successor Agency will need to recover any expenditures advanced for the next 6 months as part of a reimbursement (Cooperation Agreement). The Agreement is based on an agreeable hourly rate of $175 per hour in minimum increments of 15 minutes. Attendance at Oversight Board meetings shall be billed at actual time or a minimum of two (2) hours, whichever is greater. Approved by: Ciliristoper J. Chung CDC Director Approved via telephone Reviewed/Approved by: Arnold M. Alvarez-Glasman General Counsel to Successor Agency Attachments: Attachment No. 1 — Resolution Exhibit "A" — Agreement for Attorney Services Attachment No. 2— Harper and Burn, LLP Proposal responding to RFQ Attachment No. 3 — Matrix of propoSals submitted. ATTACHMENT NO 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, ACCEPTING THE ACTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY APPROVING A RETAINER AGREEMENT WITH THE LAW FIRM OF HARPER & BURNS TO PROVIDE GENERAL COUNSEL SERVICE FOR THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE WEST COVINA REDEVELOPMENT AGENCY WHEREAS, the City Council of the City of West Covina ("City") previously approved and adopted Redevelopment Plans for the various Redevelopment Project Areas ("Redevelopment Plans") covering certain properties within the City (the "Project Areas"); and WHEREAS, as part of the 2011-12 State budget bill, The California Legislature enacted, and the Governor signed, AB 1X 26 requiring that each redevelopment agency be dissolved; and WHEREAS, the City Council of the City of West Covina adopted the necessary resolutions electing to become the Successor Agency to the former Redevelopment Agency (Community Development Commission) of the City of West Covina ("Successor Agency") pursuant to Health and Safety Code sections 34171 and 34173; and WHEREAS, AB 1X 26 provides that each Successor Agency shall have and Oversight Board and the Oversight Board to the Successor Agency of the West Covina Redevelopment Agency ("Oversight Board").has requested the services of independent legal counsel; and WHEREAS, after following a process which involved the request and submission of responses to Requests for Proposals ("RFP") by various law firms, interviews by a selection sub- committee, and recommendation by the sub-committee to the Oversight Board, the Oversight Board selected the law firm of Harper & Burns, LLP, to serve as General Counsel and WHEREAS, in order for the payment of legal fees to occur, the Successor Agency must ratify the acceptance of the Agreement for Legal Services as set forth below. NOW, THEREFORE, BE IT RESOLVED by the Successor Agency of 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 Successor Agency of the City of West Covina hereby ratifies, accepts and approves the Agreement for Legal Services with the law firm of Harper & Burns, LLP in substantially the form attached hereto as Exhibit "A". SECTION 3. The Mayor of the City of West Covina serving as the Chairperson to the Successor agency is authorized to execute the Agreement for Legal Services. SECTION 4. The City Clerk as the Secretary to the Successor Agency shall certify to the approval and adoption of this Resolution, and it shall thereupon take effect and be in full force. APPROVED AND ADOPTED on this 21 st day of August, 2012. Mayor Michael Touhey ATTEST: City Clerk Laurie Carrico I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting held thereof on the 17 th day of July, 2012 by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman Exhibit "A" AGREEMENT FOR ATTORNEY SERVICES THIS AGREEMENT is made and entered into this day of August, 2012, by and between the CITY OF WEST COVINA, a municipal corporation, Los Angeles County, California, (the "City") on behalf of the OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE WEST COVINA REDEVELOPMENT AGENCY (the "Oversight Board"), and HARPER & BURNS LLP, Orange, California (the "Attorney"). RECITALS WHEREAS, the City desires to employ Attorney to perform legal services for the Oversight Board to the Successor Agency of the West Covina Redevelopment Agency (the "Oversight Board"); and WHEREAS, the Attorney is prepared and able to provide all legal services required and necessary to perform the duties and fulfill the obligations of the Attorney for the Oversight Board; and, COVENANTS NOW, THEREFORE, it is mutually agreed by the Parties hereto as follows: SECTION 1. AGREEMENT FOR SERVICES. The City employs Attorney to render and Attorney agrees to render all legal services for the Oversight Board pursuant to the provisions of this Agreement. SECTION 2. SCOPE OF SERVICES. The Attorney will perform and fulfill all duties and obligations including, but not limited to: (a) Advise the Oversight Board on legal authority and liability for actions taken in the ordinary course of business; (b) Advise the Oversight Board on actions necessary to protect the Board members from personal liability and protect the assets of the dissolved agency from liability and attachment; (c) Review and advise the Board on recommendations from City/Successor Agency on refinancing matters, overseeing completion of redevelopment projects, and disposition of property and other assets; (d) Provide advice on legislative matters which may affect the Board (exclusive lobbying); (e) Represent the Board in connection with any inquiry, investigation, audit or other proceedings of state regulatory agencies; (f) Represent the Board in any litigation brought by or against or otherwise involving the Board, or assist the Board in contracting for specialized litigation counsel and overseeing outside counsel's work; and (g) Engage in any other legal matters reasonably requested by the Board. SECTION 4. ASSIGNED ATTORNEYS. John Harper is hereby designated as the Attorney for the Oversight Board. All communication with the Attorney and work assignment to the Attorney by the Oversight Board shall be through the Executive Director's/City Manager's office, or as otherwise provided for in the Oversight Board's Bylaws and Rules of Procedures. It is the intention of the Parties that Mr. Harper will perform all the required duties on an as-needed basis. Attorney Colin Burns may be assigned to perform services if necessary as a result of a scheduling conflict. SECTION 5. COMPENSATION. All general services shall be provided by the Attorney at the rate of $175.00 per hour payable on a monthly basis. Attendance at the Oversight Board meetings shall be compensated on an actual time basis, with a minimum billing of two (2) hours. Travel time shall not be billed. The annual cap of services is $10,000 per annum, unless amended by Oversight Board and Attorney. SECTION 6. TERM. The Attorney shall serve at the pleasure of the Oversight Board and this Agreement may be terminated with or without cause upon written notice by the City Council acting on behalf of the Oversight Board. SECTION 7. INSURANCE. As a. condition to execution of this Agreement, the Attorney will deliver to the City evidence of professional liability and malpractice insurance from a reputable insurance carrier in the amount of $1 million dollars. The Attorney further agrees to maintain such insurance at all times during the term of this Agreement. SECTION 8. AMENDMENT. This Agreement may be amended from time to time in writing as mutually agreed by the Parties. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first written above. CITY OF WEST COVINA, on behalf of the Oversight Board to the Successor Agency of the West Covina Redevelopment Agency By: HARPER & BURNS LLP By: John R. Harper On behalf of the Oversight Board to the Successor Agency of the former West Covina Redevelopment Agency, I hereby agree to: (i) retain Harper & Burns, LLP ("the firm") to provide legal services to the Oversight Board, as client, as described above; (ii) consent to the firm's acceptance of payment from City of West Covina in its role as Successor Agency of the former West Covina RDA. By: Date: Carrie Sutkin Title: Chair, Oversight Board to the Successor Agency of the West Covina RDA On behalf of the City of West Covina in its capacity as Successor Agency of the former Pomona Redevelopment Agency, I hereby agree to: (i) the retention of Harper & Burns, LLP ("the firm") by the Oversight Board to the Successor Agency of the former West Covina Redevelopment Agency, and (ii) that the Successor Agency of the former West Covina Redevelopment Agency will be responsible for the payment of such services but will not be a client of the firm with respect to the services provided to the Oversight Board. By: Date: Michael Touhey Title: Mayor, City of West Covina in its capacity as Successor Agency of former West Covina RDA ATTACHMENT NO. 2 . PROPOSAL FOR LEGAL SERVICES TO THE OVERSIGHT BOARD July 24, 2012 LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION JOHN R. HARPER' ALAN R. BURNS COLIN R. BURNS Of Counsel JUDI CURTIN" MICHAEL MONTGOMERY* •A PROFESSIONAL CORPORATION July 18, 2012 Via Federal Express Susan Rush, Assistant City Clerk City of West Covina City Clerk's Office 1444 West Garvey Avenue West Covina, California 91765 453 SOUTH GLASSELL STREET ORANGE, CALIFORNIA 92866 TELEPHONE (714) 771-7728 FACSIMILE (714) 744-3350 John R. Harper jrharpen@harperburns.com Adhoc Committee Oversight Board to the Successor Agency to the Redevelopment Agency for the City of West Covina Re: Response to Request for Qualifications for Legal Services for the Oversight Board to the Successor Agency to the Redevelopment Agency Members of the Oversight Board: This proposal of the Law Offices of Harper & Burns LLP to provide legal services to the Oversight Board for the City of West Covina is provided in response to the City's Request for Proposals. The Firm would be pleased to provide the Oversight Board legal services by one of its - - partners, John Robert Harper.—Mr. -Harper has-been- a-public agency lawyer-for- in- excess- of thirty -- — (30) years, serving as City Attorney and.Redevelopment Agency Counsel to numerous cities in Orange, Riverside, and San Bernardino Counties, as well as water and sewer agencies and school districts. In that capacity, he and the Firm have extensive experience in all phases of public agency representation, including public contracts, affordable housing, public works contracting, complex real property transaction, including negotiation of development agreements and DDA's. Mr. Harper currently represents redevelopment agencies through the dissolution process and currently is counsel to Successor Agencies and to Oversight Boards. Mr. Harper is also a nationally recognized municipal bond counsel. Sincerely, HARPER & BURNS LLP Enclosures John Robert Harper Partner jrharper@harperburns.com CALIFORNIA STATE BAR NO.: • . 82306 AREAS OF PRACTICE: Municipal Law Government Finance EDUCATION: University. of La yerne,..Schoot of Law. (J.D. 1978, Magna Cum Laude) University of Redlands (B.A. 1968) MEMBERSHIPVADMISSIONS: State Bar of California Assn. of California Water Agencies League of California Cities Orange County City Attorneys Assn. Inland Empire City Attorneys Assn. American Bar Association Orange County Bar Association California Trial Lawyers Association Moody's Muni. Bond Lawyers of U.S. HARPER BURNS LLP In the course of his thirty-three years of practice, Mr. Harper has represented exclusively public agencies in All areas of municipal law, as a city attorney, general counsel and special counsel in municipal finance and ,litigation, principally the areas of land use and planning, environmental law, risk management, real property and eminent domain. Mr. Harper has been City Attorney in a minimum of two cities since 1981. Mr. Harper has been an arbitrator for the National Association of Securities Dealers and the Municipal Securities Rulemaking Board since 1980 and has taught mediation and arbitration techniques on behalf of the United States Department of Labor, Public Agency Division, throughout the United States. Mr. Harper has also been involved in innumerable mediation and arbitration sessions related to public employees and public labor relations, including successfully negotiating resolution to several public employee strikes. Mr. Harper was the first Chairman of the Coto de Caza Specific Plan Board of Review, appointed by Supervisor Thomas Riley and Gaddi Vasquez. Mr. Harper is, and has been since 2010, a Chairman of the • Citizens Bond Oversight Commission for the City of San Juan Capistrano. Before receiving his law degree, Mr. Harper served as a personnel consultant to public agencies statewide, as Assistant Superintendent for Employee Relations in the Corona-Norco Unified School District (19.72- 1978), and provided nationwide labor relations training through the U.S. Department of Labor. From- 1978-to the present, -Mr;--1-larper-has-devoted his-law-practice -to the representation of municipal clients, including cities, school districts, water districts, and other public agencies. Mr. Harper has been the City Attorney /Redevelopment Agency Counsel/Successor Agency Counsel for the City of Norco since 1991. Mr. Harper is General Counsel for the Trona Unified School District and the Rubidoux Community Services District, has served as General Counsel for the Lake Arrowhead Community Services District, the Big Bear Municipal Water District and the Indian Wells County Water District, has also served as City Attorney and Redevelopment Agency Counsel for the cities of Murrieta (1993- 2007), Grand Terrace (1987-2011), Placentia (1978-1987) and Lake Elsinore (1984-1997), and was Deputy City Attorney for the City of Indian Wells and the City of Adelanto. In addition, Mr. Harper has provided special counsel services on behalf of the cities of Adelanto, Big Bear, Brea, Carlsbad, El Cajon, Fresno, Fullerton, Huntington Park, Indian Wells, Irwindale, Los Angeles, National City, Palm Desert, Pasadena, Pomona, San Clemente, San Diego, San Marcos, Santa Monica, Seal Beach, Simi Valley, Imperial, Winters, Dinuba. Mr. Harper is rated "AV" by Martindale-Hubbell and is a nationally recognized municipal bond counsel. Rai HARPER BURNS LLP John Robert Harper Partner • Abated Riverside County marijuana dispensary • Drafted sober living home regulations and drug . paraphernalia • regulations adopted by Clients and other cities throughout Riverside and San Bernardino Counties • Assisted Riverside County JPA in drafting Riverside County multispecies habitat regulations • Successfully litigated challenges to signage, billboard regulations in Norco, Murrieta, Lake Elsinore • Drafted numerous residential •and commercial development agreements • Drafted numerous residential and commercial disposition and development agreements • Successfully litigated matters resulting in published appellate opinions: County of Riverside v. City of Murrieta (blight), Thompson v. City of Lake Elsinore (vested rights), Rafco Co. V. City of Murrieta • (General Plan/approved tract map), Walt Rankin & Assoc., Inc. v. City of Murrieta (construction surety requirements), City of San Marcos v. Board of Supervisors (tax issue) • Successfully litigated closure of adult bookstores (Placentia, Lake Elsinore) • Successfully defended numerous CEQA challenges to land use approvals (Placentia, Norco, Murrieta, Grand Terrace) • Represented public agency management in labor negotiations and through strike • Conducted • collective bargaining training through U.S. through Department of Labor LAW OFFICES OF • HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION JOHN R. HARPER* ALAN R. BURNS COLIN FL BURNS Of Counsel SUDS CURTIN* MICHAEL MONTGOMERY* •A PROFESSIONAL CORPORATION 453 SOUTH GLASSELL STREET ORANGE, CALIFORNIA 92866 TELEPHONE (714) 771-7728 FACSIMILE (714) 744-3350 - JOHN ROBERT HARPER, ESQ. PARTNER Experience: 1978 to Present: Law practice devoted to the representation of municipal clients, including cities, school districts, water districts, and other public agencies. 1972 to 1978: Assistant Superintendent for Employee Relations, Corona-Norco Unified School District, involving both employee relations and serving as the Assistant to the Superintendent in the day-to-day activities of a school district employing 2,500 full and part-time employees. 1968 to 1972: Management and Personnel Consultant to California Public Agencies, including cities, counties and school district as Supervisor of the • Southern California office of the Cooperative Personnel Services non-profit consulting division of the State of California. • 1980 to Present: Nationally Recognized (Moody's Red Book) Municipal Securities Counsel. Consultant • United States Department of Labor, Public Employee Relations Division in conducting public sector collective bargaining workshops throughout the United States • Association of California School Administrators, in conjunction with the law firm of . Patterson & Taggert • California Association of School Business Officials Arbitrator • National Association of Securities Dealers, Municipal Securities Rule Making Board. Memberships: • Association of California Water Agencies • League of California Cities - City Attorneys Division • Orange County City Attorneys Association • Inland Empire City Attorneys Association • State of California Bar Association - Public Law Division • American Bar Association • Orange County Bar Association • California Trial Lawyers Association • Moody's Municipal Bond Lawyers of United States Public Office: • Chairman, City of San Juan Capistrano Auditing and Finance Committee (2012 to present). • Chairman, City of San Juan Capistrano Citizens Bond Oversight Committee (2010 to present). • Chairman, Coto de Caza Board of Review (appointed by Supervisors Riley and Vasquez) (1988 to 1991) Education: • Bachelor of Arts, University of Redlands (1968); 30 units toward Masters of Public Administration • Doctor of Jurisprudence, University of La Verne School of Law - Magna Cum Laude (1978) Professional Recognition: • Martindale-Hubbell, Inc. Rated A-V PUBLIC AGENCY CLIENTS Current City Attorney and Redevelopment Agency -- - - - • City of Norco (May 1991 to Present) • City of Fountain Valley (Assistant City Attorney) (1982 to present) General Counsel (Unless Otherwise Noted) Rubidoux Commrmity Services District (1978 to present) Trona Unified School District (1999 to present) Orange County Vector Control (Assistant General Counsel) (1982 to present) Home Gardens Sanitary District (Assistant General Counsel) (1982 to present) Special Counsel Cities/Redevelopment Agencies • El Cajon . • City of Huntington Park • City of Irwindale • City of Los Angeles City of San Diego • City of Santa Monica Harper & Burns LLP I 453 South Glassell Street, Orange, California 92866 I Telephone (714) 771-7728 I Facsimile (714) 744-3350 I www.harperbums.com Special Counsel Other Public Agencies • Irvine Ranch Water District • Ramona Municipal Water District Special Counsel Cities (Unless Otherwise Noted) • Adelanto • Big Bear • Brea • Carlsbad • Fresno • Fullerton • Grand Terrace (City Attorney) (1987 to 2011) • Indian Wells • Lake Elsinore (City Attorney) (1984 to 1997) • Murrieta (City Attorney) (1993 to 2008) • National City • Palm Desert • Pasadena • Placentia (City Attorney) (1978 to 1987) • San Clemente • San Marcos • Seal Beach • Simi Valley Special Counsel Other Public Agencies (Unless Otherwise Noted) • Apple Valley County Water District - •-- Baldy Mesa Water District - - • Big Bear Municipal Water District (General Counsel) • Chino Basin Municipal Water District (General Counsel) • El Rancho Unified School District Hi-Desert Water District ▪ Indian Wells Valley Water District • Lake Arrowhead Community Services District • Yucca Valley Water District Harper & Bums LLP 1 453 South Glasse11 Street, Orange, California 92866 1 Telephone (714) 771-7728 1 Facsimile (714) 744-3350 .1 www.harperbums.com Colin Robert Burns Senior Attorney crburns@harperburns.com CALIFORNIA STATE BAR No.: 228311 AREAS OF PRACTICE: Municipal Law Litigation EDUCATION: University of California, Hastings - College of the Law (J.D. 2003, Cum Laude) Arizona State University (B.A., Political Science, 2000) MEMBERSHIPS/ADMISSIONS: State Bar of California U.S. Dist. Court, Central Dist. of CA League of California Cities California Assn. of Sanitation Agencies HARPER I BURNS LLP Colin Burns serves as assistant city attorney to the City of Fountain Valley and deputy city attorney to the City of Norco. Colin Burns also serves as associate district counsel to the Costa Mesa Sanitary District, Home Gardens Sanitary District, and Orange County Vector Control District. His practice includes reviewing and approving municipal investment policies. He also serves as trial counsel in land use and environmental matters. Mr. Burns has a successful litigation track record prosecuting municipal code violations including obtaining an injunction against a mobile marijuana dispensary. He has also successfully litigated public works, Brown Act, election, contract, and tort matters and is an experienced Pitchess attorney. He has extensive knowledge in open government, land use, and planning and represents several Planning Commissions. Mr. Burns graduated, cum laude, from the University of California, Hastings College of Law and is a member of the Order of the Coif and Thursten honor societies, and Moot Court Board. He is also an Eagle Scout and was named "Honored Citizen" by the Orange County Board of Supervisors. SUMMARY OF EXPERIENCE • Over eight years experience advising councils, boards, commissions, and °staff on all matters pertaining to municipal and local government law • Experience in The Planning and Zoning Law, Subdivision Map Act, California. Environmental Quality Act, Mitigation Fee Act, and Permit - - - Streamlining Act, PolitiCal Reform Act; Brown. Act, Public Records Act, Section 1090, and incompatible offices doctrine • Reviewed and drafted numerous ordinances and resolutions • Successfully litigated Health and Safety Code Section 17980.7 receivership, Subdivision Map Act, sign code cases, Brown Act, CEQA, Elections Code, and architectural and engineering lawsuits • Successfully prosecuted hundreds of municipal code violations, defended due process and suppression motions, prosecuted public nuisance and administrative abatement actions and obtained court ordered receivership of five acre "pack rat" property • PUBLICATIONS & PRESENTATIONS • Reviewer: The California Municipal Law Handbook (2010) Continuing Education of the Bar • Presenter: Massage Parlor Enforcement Strategies, Orange County Police Commanders' Luncheon, January 2010 • White Paper: District Liability for a Sewage Spill from a Private Lateral (April, 2008) LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION 'JOHN R. HARPER* ALAN R.. BURNS COLIN R. BURNS Of Counsel JUDI CURTIN* MICHAEL MONTGOMERY* 453 SOUTH GLASSELL STREET ORANGE, CALIFORNIA 92866 TELEPHONE (714) 771-7728 FACSIMILE (714) 744-3350 John R.. Harper •A PROFESSIONAL CORPORATION Jrharpergurperbums.com " • REFERENCES CITY OF NORCO • KOSMONT COMPANIES City Attorney (1988 to Present) Services Provided: Services Provided: City Attorney Redevelopment Agency Counsel Reference Contact: Beth Groves, City Manager City of Norco 2870 Clark Avenue Norco, California 92860 (951) 270-5611 bgroves@ci.norco.ca.us CITY OF GRAND TERRACE City Attorney (1979 to 2011) Services Provided: City Attorney Redevelopment Agency Counsel Reference Contact: Betsy Adams, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, California 92313 (909) 824-6621 badams@cityofgrandterrace.org Kosmont Companies is a redevelopment consultant. I have worked with the company on behalf of several public agencies/entities in development proposals, including Silverlakes Equestrian and Sports Park s in Norco. Reference Contact: Larry Kosmont, President Kosmont Companies 865 South Figueroa Street, Suite 3500 Los Angeles, California 90017 (213) 417-3333 lkosmont@kosmont.com LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION JOHN R. HARPER." ALAN R. BURNS COLIN R. BURNS Of Counsel • JUDI CURTIN*. MICHAEL MONTGOMERY' -A PROFESSIONAL CORPORATION 453 SOUTH GLASSELL STREET ORANGE, CALIFORNIA 92866 TELEPHONE (714) 771-7728 FACSIMILE (714) 744-3350 Joltn R. Harper jrharper@harperburns.com FEE SCHEDULE All attorney services provided pursuant to this Proposal shall be at a fee of $175.00 per hour in minimum increments of 15 minutes. Attendance at Oversight Board meetings shall be billed at actual time or a minimum of two (2) hours, whichever is greater. $200 - Attorneys $100- Paralegal $100 - Investigator Part time/Clerical only as and if needed Alternative compensation plan of $2,500/month fate fee $200 - Attorneys $100 - Paralegal $100 - Investigator Part time/Clerical only as and if Additonal cost to retainer. , No travel expenses if based on hourly rate. Additional cost for travel if flat fee is selected. Yes None $285 - Attorney $285 Cost of travel Yes ' Healdsburg $205 - $285 Associates Time of travel Salinas . $95 - $125 Paralegals Petaluma Santa Monica $450 $350 $375 - $300 $300 $450 $350 $480 $300 $300 $260 None Yes None 3% increase in Sept 1 • c. ATTACHM NINO. 3 Law Firm 1 Colantuono & Levin, PC 300 So, Grand Avenue, Suite 2700 Los Angeles, CA 90071-3137 Main (213) 542-5700 Fax (213) 542-5710 mw.clInw.us 2 Harper & Burns LLP 453 South GlasseII Street Orange, CA 92866 Main (714) 771-7728 Fax (714) 744-3350 3 Law Offices of Edward Z Kotkin Xerox Centre 1851 East First Street, Suite 900 Santa Ana, CA 92705-4066 Main (714) 619-9393 Fax (714) 384-4550 msw.kolkinliw.com 4 Renne Sloan Hotlman Sakai LLP 350 Sansome Street, Suite 300 San Francisco, CA 94104-1304 Main (415) 678-3800 Fax (415) 678-3838 5 Polsjnelli Shughart LLP 1801 Century Park East, Suite 1801 Los Angeles, CA 90067 Main (310) 203-5303 Fax (310) 861-1091 Designated Attorney Teresa L. Highsmith Scott Howard John Robert Harper Cohn Robert Burns Edward Z Kolkin Peter L. Wallin David Kahn Randy Riddle Lisa Greer Ouateman Timothy J. Reimers Tracy M. Ginn Wesley D. Hurst Arthel McDaniel Eric B. Blum Michael P. Cutler Barstow Sierra Madre Los Alamitos Calabasas Norco Fountain Valley Gardena West Covina' Is Verne *Indicates this is a miscommunications between firms and Peter Wallin does not represented West Covina. No additional identified. Gardena Compton Los Angeles LAX San Diego San Francisco Pasadenda A client list Identifies LA County Civil Service Commission, LA County Law Library and various taxing entities. See client lisL Trono Unified School District Rubidoux Community Services District Orange County Vector Control Home Gardens Sanitary District None. Santa Clara County (past) San Francisco County County of Los Angeles (past) Internal Conflict of Interest Check Completed No conflict identied by Law Firm. No conflict identied by Law Firm. No conflict identied by Law Firm. No conflict identied by Law Firm. No conflict identied by Law Firm. General Services Litigation Hourly Rate Hourly Rate $225- blended $325 Travel Expenses Available First Thursday of the month Currently Represents other Oversight Boards Mileage only Yes Pomona Temple City San Gabriel Currently Represents other Currently Represents County or Cities other Taxing Entities $175 $175 None Yes March Air Force Base Norco Redevelopment Experience Yes Yes Yes Yes Yes City of West Covina Memorandum AGENDA Item SA7 TO: Andrew G. Pasmant, City Manager and City Council Date: August 21, 2012 FROM: Thomas Bachman Assistant City Manager SUBJECT: RESOLUTION AUTHORIZING THE CITY ACTING AS SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY TO USE THE LOCAL AGENCY INVESTMENT FUND (LAIF) AS AN INVESTMENT ALTERNATIVE RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency of the West Covina Redevelopment Agency, adopt the following resolution entitled: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY AUTHORIZING THE USE OF THE LOCAL AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN INVESTMENT ALTERNATIVE. DISCUSSION: The State of California allows local government agencies to pool investment funds in the Local Agency Investment Fund (LAIF). This allows participants to achieve greater diversity and higher return with complete liquidity as part of the state's professionally managed portfolio. The City of West Covina and the West Covina Successor Agency currently have investment accounts with LAIF. The interest rate for the most recently completed quarter ending June 30, 2012, was 0.358%. The California State Treasurer's office has asked the City to update the resolutions authorizing participation in the pool. The new resolution authorizes the Assistant City Manager, Finance Director, the City Controller and their successors to administer West Covina's LAIF accounts. FISCAL IMPACT: None. eecz-ksz.- Prepared by: Clara Wong Reviervn 4?-'1'pproved lif.om Bachman Interim FinanceD)ector Asst. City Manager RESOLUTION NO. RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY AUTHORIZING THE USE OF THE LOCAL AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN INVESTMENT ALTERNATIVE. WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the West Covina City Council acting as the successor agency to the West Covina Redevelopment Agency does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the Agency. WHEREAS, it is deemed wise and prudent to establish an account with the office of the California State Treasurer for the purpose of using the Local Agency Investment Fund as an investment alternative. NOW, THEREFORE BE IT RESOLVED, the City Council of the City of West Covina acting as the successor agency to the West Covina Redevelopment Agency does hereby resolve as follows: Section 1. That the City of West Covina City Council acting as the successor agency to the West Covina Redevelopment Agency hereby authorizes the establishment of an investment account with the office of the California State Treasurer Local Agency Investment Fund titled: West Covina Successor Agency 1444 West Garvey Avenue West Covina, CA 91790 Attn: Finance Director e) Section 2. That the City of West Covina City Council acting as the successor agency to the West Covina Redevelopment Agency agrees to deposit or withdraw money in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated herein. Section 3. That the West Covina City Council authorizes the following named local officials to order the deposit or withdrawal of money in the Local Agency Investment Fund: Thomas Bachman, Assistant City Manager, Clara Wong, (Interim) Finance Director Dennis Swink, City Controller, and their successors. Section 4. That the City Clerk shall certify to the passage and adoption of the resolution. APPROVED AND ADOPTED this 21st day of August 2012. Mayor Mike Touhey Attest: City Clerk Laurie Carrico I, LAURIE CARRICO City Clerk of the City of West Covina, California, do hereby certify that the foregoing resolution was approved and adopted by the City Council at the regular meeting of August 21, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Laurie Carrico Approved as to form: City Attorney Arnold Alvarez-Glasman City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, Executive Director and the ITEM NO. SA8 Successor Agency of the West Covina Redevelopment Agency DATE August 21, 2012 FROM: Thomas Bachman, Assistance City Manager/Finance Director Christopher J. Chung, CDC Director SUBJECT: COOPERATION AGREEMENT BETWEEN CITY OF WEST COVINA ("CITY") AND SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY ("SUCCESSOR AGENCY) FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE, OVERHEAD AND OTHER EXPENSES 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 THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, APPROVING A COOPERATIVE AGREEEMENT WITH THE CITY OF WEST COVINA FOR THE ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE COSTS, ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED EXPENSES DISCUSSION: Staff recommends that the City and Successor Agency enter into a Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead, apd Other Expenses ("Cooperative Agreement") in order to establish the contractual and legal mechanism for the City and Successor Agency to implement this system. By providing and making available to the Successor Agency the staff, facilities, services, and other resources of the City, the City has advanced and will continue to advance the cost of the foregoing to the Successor Agency. The Cooperative Agreement provides a method for the Successor Agency to reimburse the City for such advances. FACTS: Under AB 1X 26 and subsequent authorities, Successor Agencies are mandated to undertake a number of actions pursuant to Health & Safety Code Section 34170, et seq., including winding down the affairs of the former Agency. Undertaking such actions requires the devotion of city staff time, city facilities, and other city resources, all of which are required in order for the Successor Agency to properly fulfill its legal mandates. To memorialize these obligations, cities have been considering entering into "Cooperative Agreements" with their counterpart successor agencies to ensure that any advances are reimbursable obligations. The Cooperative Agreements provide the terms by with a city will advance staff time, facilities, and other resources to its counterpart successor agency in exchange for future reimbursement by the successor agency. Such agreements are authorized pursuant to Health & Safety Code Section 34171(d)(1)(F), which characterizes as "enforceable obligations" agreements necessary for the administration or operation of the successor agency (subject to oversight board approval). Additionally, Health & Safety Code §§ 34173(h) and 34177.3(b) newly enacted under AB 1484, provide further authority to enter into a Cooperative Agreement. To be effective, the Cooperative Agreement must be approved by both the City and the Successor Agency, must be submitted to and approved by the West Covina Oversight Board, and must be approved as an "enforceable obligation." Christopher I. Ch CDC Director Approved by: Thomas achman, Assistant City Manager/Finance Director Attachments: Attachment No. 1: Resolution approving Cooperation Agreement Attachment No. 2: Cooperation Agreement. ATTACHMENT NO. 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, APPROVING A COOPERATIVE AGREEEMENT WITH THE CITY OF WEST COVINA FOR THE ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE COSTS, ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED EXPENSES WHEREAS, the Successor Agency to the former West Covina Redevelopment Agency ("Successor Agency") is required to undertake a number of actions pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170 ("Part 1.85"), including winding down the affairs of the former Redevelopment Agency ("Agency"); WHEREAS, in June 2012, the State Legislature enacted Assembly Bill ("AB") 1484 which amended AB 26 and clarified the definition of "enforceable obligations"; WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations; WHEREAS, pursuant to Health and Safety Code Section 34177.3(b), the Successor Agency may create enforceable obligations to conduct the work of winding down the Agency, including hiring staff, acquiring necessary professional administrative services and legal counsel, and procuring insurance; WHEREAS, pursuant to Health and Safety Code Section 34173(h), the city that authorized the creation of a redevelopment agency may loan or grant funds to a successor agency for administrative costs, enforceable obligations, or project related expenses at the city's discretion and, subject to the Oversight Board's approval, such loan or grant from the city shall be deemed an enforceable obligation; WHEREAS, in connection with the administration and operations of the Successor Agency, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City of West Covina ("City"); WHEREAS, the City has agreed to advance to the Successor Agency the staff, facilities, and other resources necessary for the Successor Agency to perform its obligations under Part 1.85, in exchange for the reimbursement of the costs therefore from future funds received by the Successor Agency, to the extent permitted by law; WHEREAS, the Successor Agency recognizes that the Oversight Board to the Successor Agency ("Oversight Board") is required to undertake a number of actions pursuant to Part 1.85, including overseeing and approving actions of the Successor Agency as are enumerated in Health and Safety Code Section 34180, and, in connection with performing those obligations, is and will be utilizing the staff, facilities, and other resources of the Successor Agency. WHEREAS, the City has agreed to advance to the Successor Agency the staff, facilities, and other resources necessary to assist the Oversight Board in performing its obligations under Part 1.85, including advancing the funds to the Successor Agency necessary for the Oversight Board to retain independent legal counsel and/or technical advisors. WHEREAS, the Successor Agency desires to memorialize its understanding with the City and provide for an appropriate method of reimbursement of such advances and/or loans by the City to the Successor Agency. NOW, THEREFORE, BE IT RESOLVED by the Successor Agency as follows: SECTION 1. The Successor Agency hereby finds and determines that the forgoing recitals are true and correct, constitute a material part of this Resolution, and therefore incorporate them herein in their entirety as part of the findings. SECTION 2. The Successor Agency hereby finds and determines that a "cooperative agreement" memorializing its understanding with the City and providing for an appropriate method of reimbursement of the City's advance of staff, facilities, and other resources will aid the Successor Agency in satisfying its obligations under Part 1.85. SECTION 3. The Successor Agency hereby approves that certain agreement, titled "Cooperative Agreement For Advance And Reimbursement Of Administrative Costs, Enforceable Obligations, And Project Related Expenses" ("Cooperative Agreement"), that is attached hereto as Exhibit "A." SECTION 4. The Successor Agency hereby authorizes the Executive Director, or their designee, to execute the Cooperative Agreement and any reasonably related agreement(s) necessary to carry out its purpose on behalf of the Successor Agency. SECTION 5. The Successor Agency hereby acknowledges that the Cooperative Agreement requires the approval of the Oversight Board to the Successor Agency before becoming effective. SECTION 6. If any part of this Resolution or its application is held to be invalid, the remainder of the Resolution shall not be affected and shall continue in full force and effect. SECTION 7. The Successor Agency Secretary shall certify to the passage and adoption of this Resolution and the same shall thereupon take effect and be in force immediately upon its adoption. APPROVED AND ADOPTED on this day of August, 2012. Mike Touhey, Governing Board Chairman Successor Agency of the former West Covina Redevelopment Agency APPROVED AS TO FORM: Arnold M. Alvarez Glasman, Successor Agency Counsel ATTEST Susan Rush, Successor Agency Secretary I HEREBY CERTIFY that the foregoing resolution was duly adopted by the by the Governing Board of the Successor Agency to the former West Covina Redevelopment Agency at a meeting held on the day of by the following vote: AYES: NOES: ABSENT: ABSTAIN: Susan Rush, Successor Agency Secretary Successor Agency of the former West Covina Redevelopment Agency ATTACHMENT NO. 2 COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE COSTS, ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED EXPENSES This COOPERATIVE AGREEMENT FOR ADVANCE AND REIMBURSEMENT OF ADMINISTRATIVE COSTS, ENFORCEABLE OBLIGATIONS, AND PROJECT RELATED EXPENSES (this "Agreement") is entered into as of , by and between the City of West Covina (the "City") and the Successor Agency to the West Covina Redevelopment Agency (the "Successor Agency"). RECITALS: WHEREAS, the Successor Agency is required to undertake a number of actions pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170) ("Part 1.85"), including winding down the affairs of the former West Covina Redevelopment Agency ("Agency") as required by Health and Safety Code Section 34177(h). WHEREAS, in June 2012, the State Legislature enacted AB 1484 which amended AB 26 clarifying the definition of "enforceable obligations." WHEREAS, pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations. WHEREAS, pursuant to Health and Safety Code Section 34177.3(b), the Successor Agency may create enforceable obligations to conduct the work of winding down the Redevelopment Agency, including hiring staff, acquiring necessary professional administrative services and legal counsel, and procuring insurance. WHEREAS, pursuant to Health and Safety Code Section 34173(h), the city that authorized the creation of a redevelopment agency may loan or grant funds to a successor agency for administrative costs, enforceable obligations, or project related expenses at the city's discretion and, subject to the oversight board's approval, such loan or grant from the city shall be deemed an enforceable obligation. WHEREAS, in connection with the administrative costs, enforceable obligations, project related expenses, and the general operations of the Successor Agency in accordance with Part 1.85, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City. WHEREAS, the City Manager of the City serves as Executive Director of the Successor Agency, the City Treasurer serves as Finance Officer of the Successor Agency, and the City Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public works, and other City departments devote, and are expected to devote, substantial time with respect to the administration and operations of the Successor Agency, including gathering information relating to the Agency's enforceable obligations, conferring with public officials representing governmental agencies, and undertaking other activities in connection with winding down the affairs of the Agency required under Part 1.85. WHEREAS, by providing and making available to the Successor Agency 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 Successor Agency, the City has advanced and will continue to advance the cost of the foregoing to the Successor Agency. WHEREAS, the City and Successor Agency recognized that the Oversight Board to the Successor Agency ("Oversight Board") is required to undertake a number of actions pursuant to Part 1.85, including overseeing and approving actions of the Successor Agency as are enumerated in Health and Safety Code Section 34180, and, in connection with performing those obligations, is and will be utilizing the staff, facilities, and other resources of the Successor Agency. WHEREAS, the City and Successor Agency recognize that the Oversight Board may require independent legal counsel and/or technical advisors to perform its obligations under Part 1.85. WHEREAS, the City is and will be advancing to the Successor Agency the staff, facilities, and other resources necessary to assist the Oversight Board in performing its obligations under Part 1.85, including advancing the funds to the Successor Agency necessary for the Oversight Board to retain independent legal counsel and/or technical advisors. WHEREAS, the City and the Successor Agency desire to enter into this Agreement to acknowledge the foregoing recitals and to memorialize the mutual understanding between City and Successor Agency, and provide for an appropriate method of reimbursement of such advances and/or loans by the City to the Successor Agency. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section .1. The City agrees to make available to the Successor Agency its staff, facilities, services, and other resources, including, without limitation, consultants, legal counsel, office space, equipment, supplies, and insurance, necessary to the administration and operations of the Successor Agency and the Oversight Board and, where necessary, advances or loans to the Successor Agency for administrative costs, enforceable obligations, and project related expenses. The Successor Agency desires to have access to and utilize the foregoing staff, facilities, services, and other resources of the City as may be required to perform its obligations under All 26 and amendments thereto. Section 2. The City agrees to advance funds to the Successor Agency for Oversight Board legal services and/or technical advisors for July 2012 to December 2012, to be reimbursed under the Recognized Obligations Payment Schedule ("ROPS") for January 1, 2013 to June 2013, and to advance such other funds in further ROPS payment periods as is reasonably necessary to allow the Oversight Board to retain legal services and/or technical advisors. Section 3. The value of the City staff, including all employee salaries, retirement and other benefits, facilities, services, and other resources of the City, including but not limited to, office space, equipment, supplies, and insurance, necessary to the administration and operations of the Successor Agency made, and to be made, available to the Successor Agency for each six- month fiscal period beginning with the fiscal period commencing on January 1, 2012 and ending on June 30, 2012, calculated and determined in accordance with Section 4 hereof; shall be detemined necessary for the administration and operation of the Successor Agency for purposes of Health and Safety Code § 34171(d)(1)(F) and constitute an advance and loan to the Successor Agency as authorized pursuant to Health and Safety Code § 34173(h) by the City for each six- month fiscal period, to be repaid in accordance with Section 4 of this Agreement. Section 4. The City shall prepare a cost analysis based upon reasonable allocations and generally accepted accounting principles documenting: (a) the value of any administrative costs paid for by the City, including, but not limited to, all employee salaries, retirement and other benefits, and the facilities, services, and other resources of the City made, or to be made available, to the Successor Agency pursuant to Section 1 hereof; (b) any City advances or loans used to pay for any Administrative Costs or Enforceable Obligation(s); and (c) any City advances or loans used to pay for any project related expenses for each six-month fiscal period beginning with the first fiscal period commencing on January 1, 2012 and ending on June 30, 2012 ("Expenses"). Section 5. Within a reasonable amount of time following the end of each six month fiscal period, beginning with the fiscal period commencing on January 1, 2012 and ending on June 30, 2012, the Successor Agency shall pay the City an amount equal to the amount advanced or loaned to pay for any Administrative Costs, Enforceable Obligations or Project Related expenses as calculated in Section 4 hereof ("Unfimded Costs"). The Unfunded Costs owed to the City shall constitute an Enforceable Obligation pursuant to Health and Safety Code §§ 34173(h) and 34171(d)(1)(F) and included on all applicable future Recognized Obligations Payment Schedules. 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 times. Section 8. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. Section 9. This Agreement will be become effective upon approval of the Oversight Board to the Successor Agency. Section 10. This Agreement may be amended at any time, and from time to time, by an agreement executed by both parties to this Agreement and approved by the Oversight Board to the Successor Agency. [SIGNATURES ON THE FOLLOWING PAGE] THE CITY OF WEST COVINA .(the "CITY") By: Andrew Pasmant, City Manager Date: THE SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY (the "Successor Agency") By: Andrew Pasmant, Executive Director Date: ATTEST: By: City Clerk/Successor Agency Secretary APPROVED AS TO FORM: By: Arnold M. Alvarez-Glasman City Attorney/Successor Agency Counsel