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HomeMy WebLinkAboutSuccessor Agency Item 5SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE: February 12, 2018 TO: Honorable Chair and Board Members THRU: Jill R. Ingram, Executive Director FROM: Victoria L. Beatley, Finance Officer SUBJECT: ADMINISTRATIVE BUDGETS FOR THE SIX -MONTH FISCAL PERIODS FROM JULY 1, 2018 THROUGH DECEMBER 31, 2018 AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019 SUMMARY OF REQUEST: That the Governing Board of the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency ") adopt Resolution No. SA 18 -02, approving administrative budgets for the six -month fiscal periods from July 1, 2018 through December 31, 2018 ( "Administrative Budget 18 -19A ") and from January 1, 2019 through June 30, 2019 ( "Administrative Budget 18- 196 "). BACKGROUND AND ANALYSIS: Pursuant to Section 341770) of the California Health and Safety Code ( "HSC "), the Successor Agency is required to prepare a proposed administrative budget for each six -month fiscal period, which must be submitted to the Oversight Board for approval. Each proposed administrative budget must include all of the following: (1) estimated amounts for Successor Agency administrative costs for the applicable six -month fiscal period; (2) proposed sources of payment for the administrative costs; and (3) proposals for arrangements for administrative and operations services provided by the City of Seal Beach (the "City ") or other entity. HSC Section 34177 is unclear regarding the required timing for the submission of the proposed administrative budgets to the Oversight Board. However, because the Successor's Agency's administrative expenditures also have to be reflected on the Successor Agency's Recognized Obligation Payment Schedules ( "ROPS "), the administrative budgets should be consistent. Agenda Item 5 Previously, the Successor Agency was required to prepare a ROPS for each six - month fiscal period (from July 1 through December 31, and from January 1 through June 30, respectively). SB 107, which was enacted in September 2015, amended HSC Section 34177, to provide that, beginning with fiscal year 2016- 17, the Successor Agency must prepare a ROPS annually (instead of twice a year). HSC Section 34177(0) provides that the Successor Agency must submit an Oversight Board - approved ROPS for fiscal year 2018 -19 (`BOPS 18 -19 ") to the State Department of Finance and the County Auditor - Controller no later February 1, 2018. ROPS 18 -19 is being presented to the Successor Agency pursuant to a separate resolution. Prior Oversight Board Action The Successor Agency was required to submit an Oversight Board - approved ROPS 18 -19 to the DOF by February 1, 2018 or risk subjecting the City of Seal Beach (the "City ") and the Successor Agency to certain penalties. However, Staff was not in a position to finalize ROPS 18 -19 in time for presentation to the Successor Agency Board at its regular January 2018 meeting dates. The law does not require the Successor Agency Board to approve ROPS 18 -19 before the Oversight Board - approved ROPS 18 -19 is submitted to the DOF. Staff presented ROPS 18 -19, the Administrative Budget 18 -19A and Administrative Budget 18 -19B to the Oversight Board at its January 23, 2018 meeting and was able to submit the Oversight Board - approved ROPS 18 -19 to the DOF before the February 1, 2018 deadline. ENVIRONMENTAL IMPACT: There is no environmental impact associated with adoption of the attached Resolution. LEGAL ANALYSIS: General Counsel has reviewed and approved as to form. FINANCIAL IMPACT: Under HSC Section 34171(b), the "Administrative Cost Allowance" is the maximum amount of administrative costs that may be paid by the Successor Agency from property tax revenues allocated by the County Auditor - Controller (i.e., disbursements from Redevelopment Property Tax Trust Fund ( "RPTTF ")). The Successor Agency's annual administrative costs (except for administrative costs paid from bond proceeds or grant funds) must not exceed 50 percent of the total RPTTF moneys distributed to pay enforceable obligations in the preceding fiscal year (which latter amount must be reduced by the Successor Agency's Administrative Cost Allowance and loan repayments made to the City for loans re- established pursuant to HSC Section 34191.4 (the "City Loans ") during the Page 2 preceding fiscal year). Subject to the foregoing, the Administrative Cost Allowance is the greater of: (i) $250,000 fiscal year, or (ii) 3 percent of the actual RPTTF moneys distributed to the Successor Agency by the County Auditor - Controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the Successor Agency's administrative cost allowance and repayments made to the City Loans during the preceding fiscal year. RECOMMENDATION: That the Governing Board of the Successor Agency adopt Resolution No. SA 18 -02, approving Administrative Budget 18 -19A and Administrative Budget 18 -19B and taking related actions. SUBM Victoria L. Beatley, Finance Officer Attachment: A. Resolution No. SA 18 -02 Page 3 NOTED AND APPROVED: m ill .Ingram cutive Director RESOLUTION NUMBER SA18 -02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX -MONTH FISCAL PERIODS FROM JULY 1, 2018 THROUGH DECEMBER 31, 2018 AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019, AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code Section 341770), the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency ") must prepare a proposed administrative budget for each six -month fiscal period (commencing each January 1 and July 1) and submit each proposed administrative budget to the oversight board of the Successor Agency (the "Oversight Board ") for approval; and B. Each proposed administrative budget shall include all of the following: (1) estimated amounts for Successor Agency administrative costs for the upcoming six -month fiscal period; (2) proposed sources of payment for the costs indentified in (1); and (3) proposals for arrangements for administrative and operations services provided by the City of Seal Beach or another entity; and C. Pursuant to Health and Safety Code Section 34177(k), the Successor Agency is required to provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County Auditor - Controller for each six -month fiscal period; and D. There has been presented to this Board for approval, the Successor Agency's proposed administrative budgets for the six -month fiscal periods from July 1, 2018 through December 31, 2018 ( "Administrative Budget 18 -19A ") and from January 1, 2019 through June 30, 2019 ( "Administrative Budget 18 -19B," together with Administrative Budget 18 -19A, the "Administrative Budgets "); NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Resolution Number SA18 -02 Section 2. Administrative Budget 18 -19A, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. Administrative Budget 18 -19B, substantially in the form attached hereto as Exhibit B, is hereby approved. Section 4. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify the Administrative Budgets as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. Section 5. The officers and other staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution and the Administrative Budgets and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED and ADOPTED by the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 12th day of February, 2018 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mike Varipapa, Chair ATTEST: Robin L. Roberts, Secretary Resolution Number SA18 -02 EXHIBIT A SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18 -19A (July 1, 2018 through December 31, 2018) Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 - December 31, 2016 CATEGORYI The items Ilsted below include amounts to be reimbursed by the Successor Agency to the City of Seal Beach, pursuant to a Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and other Expenses ( "Cooperative Agreement"), by and between the City and the Successor Agency, In the forma pp roved by the Successor Agency Board pursuant to Resolution No. SA 12 -10, adopted on APO % 2012. Pursuant to the Cooperative Agreement, the Successor Agency reimburses the City for all costs advanced by the City for the administration and operation of the Successor Agency, including but not limited to value of staff, consultants and legal counsel, office space, equipment, supplies, insurance and other services and facilities. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staffina for the Successor Aaencv City Manager 285 Administrative Allowance City Clerk 165 Administrative Allowance Accountant 112 Administrative Allowance Amounting Technician- Accounts Payable 101 Administrative Allowance Amounting Technician - Payroll 95 Administrative Allowance Finance Manager 164 Administrative Allowance Director of Finance 324 Administrative Allowance Staffing for the Oversight Board City Manager 158 Administrative Allowance City Clerk 165 Administrative Allowance Finance Manager 123 Administrative Allowance Director of Finance 216 Administrative Allowance Overhead Cost Sewims/Facilities 92 Administrative Allowance TOTAL 2,000 Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 • December 31, 2018 CATEGORY II Health & Safety Code Section 36177 (k) states: "Provide ad min lstrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor- controller for each six -month fiscal period." Listed below are the administrative cost Items that the Successor Agency anticipates to pay from property tax revenues deposited In the Redevelopment Property Tax Trust Fund. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative Agreement. Pursuant to Health and Safely Code Section 34177(d)(1)(F), contracts necessary for the administration and operation of the Successor Agency are enforceable obligations. Accordingly, amounts to be paid by the Successor Agency to third party vendors for equipment and supplies necessary for the administration of the Successor Agency and auditors, legal counsel and other consultants for services to the Successor Agency are listed as payments for enforceable obligations on the Recognized Obligation Payment Schedules, The Successor Agency anticipates to pay such costs from property tax revenues deposited In the Redevelopment Property Tax Trust Fund, PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Legal counsel 20,000 Administrative Allowance Trustee Fees 1,796 Administrative Allowance Arbitrage Analysis - Administrative Allowance - Administrative Allowance TOTAL 21,796 CATEGORY III Costs allocable to particular projects are considered part of the project costs. Listed below are administrative costs that are allocable to projects and not included in the tables above. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative Agreement. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staff - RPTTF Legal counsel - RPTTF Contract Expenses - RPTTF TOTAL Resolution Number SA18 -02 EXHIBIT B SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18 -196 (January 1, 2019 through June 30, 2019) Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 - June 30, 2019 CATEGORYI The items listed below include amounts to be reimbursed by the Successor Agency to the City of Seal Beach, pursuant to a Cooperative Agreement for Advance and Reimbursement of Administrative, Overhead and other Expenses ( "Cooperative Agreement "I, by and between the City and the Successor Agency, in the form approved by the Successor Agency Board pursuant to Resolution No. SA 12 -10, adopted on April 9, 2012. Pursuant to the Cooperative Agreement, the Successor Agency reimburses the City for all costs advanced by the City for the administration and operation of the Successor Agency, including but not limited to value of staff, consultants and legal counsel, office space, equipment, supplies, insurance and other services and facilities. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Stalling for the Successor Agency City Manager 285 Administrative Allowance City Clerk 165 Administrative Allowance Accountant 112 Administrative Allowance Accounting Technician - Accounts Payable 101 Administrative Allowance Accounting Technician - Payroll 95 Administrative Allowance Finance Manager 164 Administrative Allowance Director of Finance 324 Administrative Allowance Staffing for the Oversight Board City Manager 158 Administrative Allowance City Clerk 165 Administrative Allowance Finance Manager 123 Administrative Allowance Director of Finance 216 Administrative Allowance Overhead Cost Services /Facilities 92 Administrative Allowance TOTAL 2,000 Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 - June 30, 2019 CATEGORY II Health & Safety Code Section 34177 (k) states: "Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor - controller for each six -month fiscal period." Listed below are the administrative cost items that the Successor Agency anticipates to pay from property tax revenues deposited In the Redevelopment Property Tax Trust Fund. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative Agreement. Pursuant to Health and Safely Code Section 34177(d)(1)(F), contracts necessary for the administration and operation of the Successor Agency are enforceable obligations. Accordingly, amounts to be paid by the Successor Agency to third party vendors for equipment and supplies necessary for the administration of the Successor Agency and auditors, legal counsel and other consultants for services to the Successor Agency are listed as payments for enforceable obligations on the Recognized Obligation Payment Schedules. The Successor Agency anticipates to pay such costs from property tax revenues deposited in the Redevelopment Property Tax Trust Fund. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Legal counsel 20,000 Administrative Allowance Trustee Fees 4,277 Administrative Allowance Arbitrage Analysis - Administrative Allowance - Administrative Allowance TOTAL 24,277 CATEGORY III Costs allocable to particular projects are considered part of the project costs. Listed below are administrative costs that are allocable to projects and not included in the tables above. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative Agreement. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staff - RPTTF Legal counsel - RPTTF Contract Expenses - RPTTF TOTAL Resolution Number SA18 -02 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, Secretary of the Successor Agency to the Seal Beach Redevelopment Agency, do hereby certify that the foregoing resolution is the original copy of Resolution Number SA18 -02 on file in the office of the City Clerk of the City of Seal Beach, passed, approved, and adopted by the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 12th day of February, 2018. Robin L. Roberts, Secretary