HomeMy WebLinkAboutAG RPTS 2012 0515 OB SPC NOTICE AND CALL OF A SPECIAL MEETING
OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
OF THE CITY OF MOORPARK
NOTICE IS HEREBY GIVEN that a Special Meeting of the Oversight Board to the
Successor Agency of the Redevelopment Agency of the City of Moorpark is hereby called
to be held on Tuesday, May 15, 2012, commencing at 4:15 p.m. Said meeting will
convene in the Moorpark Community Center located at 799 Moorpark Avenue, Moorpark,
California.
Said Special Meeting shall be for the purpose of considering the following:
1. CALL TO ORDER:
2. ROLL CALL:
3. PUBLIC COMMENT:
4. REORDERING OF, AND ADDITIONS TO, THE AGENDA:
S. PRESENTATION/ACTION/DISCUSSION:
A. Consider an Agreement for the Use of Bond Proceeds for Capital
Improvements as Authorized by Health and Safety Code Sections 34178
and 34180 Between the City of Moorpark and the City Acting in its Role as
Successor Agency to the Former Redevelopment Agency of the City of
Moorpark. Staff Recommendation: Approve the Agreement. (Staff: David
Moe)
All writings and documents provided to the majority of the Board Members regarding all open-session agenda
items are available for public inspection at the City Hall public counter located at 799 Moorpark Avenue during
regular business hours. Agenda packets for Oversight Board meetings are also available on the City's website
at www.ci.moorpark.ca.us.
Any member of the public may address the Board during the Public Comments portion of the Agenda,unless it is
a Presentation/Action/Discussion item. Speakers who wish to address the Board concerning a
Presentations/Action/Discussion item must do so during the Presentations/Action/Discussion portion of the
Agenda for that item. Speaker cards must be received by the City Clerk for Public Comment prior to the
beginning of the Public Comments portion of the meeting;and for a Presentation/Action/Discussion item,and
prior to the Chairperson's call for speaker cards for each Presentation/Action/Discussion agenda item. A
limitation of three minutes shall be imposed upon each Public Comment and Presentation/Action/Discussion
item speaker. Written Statement Cards may be submitted in lieu of speaking orally for
Presentation/Action/Discussion items. Any questions concerning any agenda item may be directed to the City
Clerk's office at 517-6223.
May 15, 2012 - Special Meeting of the Oversight Board to the
Successor Agency of the Redevelopment Agency of the
City of Moorpark
Page 2
6. ADJOURNMENT:
Dated: May 14, 2012.
Maureen Benson, City Clerk
In compliance with the Americans with Disabilities Act,if you need special assistance to review an agenda or participate in this
meeting,including auxiliary aids or services, please contact the City Clerk's Division at(805)517-6223. Upon request,the
agenda can be made available in appropriate alternative formats to persons with a disability.Upon advance notification of the
need for disability-related modification or accommodation, reasonable arrangements will be made by City staff to provide
accessibility to the meeting(28 CFR 35.102-35.104;ADA Title II).
May 15, 2012 - Special Meeting of the Oversight Board to the
Successor Agency of the Redevelopment Agency of the
City of Moorpark
Page 3
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss
CITY OF MOORPARK )
AFFIDAVIT OF POSTING
I, Maureen Benson, declare as follows:
That I am the City Clerk of the City of Moorpark and that a notice for a Special Meeting of
Oversight Board for the Successor Agency of the Redevelopment Agency of the City of
Moorpark to be held Tuesday, May 15, 2012, at 4:15 p.m. in the Council Chambers of the
Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California, was posted on
May 14, 2012, at a conspicuous place at the Moorpark Community Center, 799 Moorpark
Avenue, Moorpark, California.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 14, 2012.
Maureen Benson, City Clerk
OVERSIGHT BOARD TO SUCCESSOR AGENCY
OF THE REDEVELOPMENT AGENCY
OF THE CITY OF MOORPARK MEETING
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ACTION
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BY:
OVERSIGHT BOARD TO SUCCESSOR AGENCY
AGENDA REPORT
To: Oversight Board to Successor Agency
From: David C. Moe 11, Redevelopment Manager
Date: May 14, 2012 (Meeting of 5115112)
Subject: Consider an Agreement for the Use of Bond Proceeds for Capital
Improvements, as Authorized by Health and Safety Code Sections
34178 and 34180, Between the City of Moorpark and the City Acting
in its Role as Successor Agency to the Former Redevelopment
Agency of the City of Moorpark
BACKGROUND
On January 19, 2004 the City Council awarded a contract to HMC Architects ("HMC")
for preparation of conceptual site and building design for the Ruben Castro Human
Services Center ("RCHSC"). After the completion of these services, an agreement was
awarded to HMC to complete the total design of the building. On February 26, 2008, the
Planning Commission recommended conditional approval of Commercial Planned
Development Permit No.2007-02 to the City Council: On May 21, 2008, the City Council
approved Commercial Planned Development Permit No.2007-02 with certain conditions.
On December 21, 2006, The Redevelopment Agency of the City of Moorpark
("Redevelopment Agency") issued tax exempt bonds to finance the design and
construction of the RCHSC.
The design work and construction plans were completed by HMC and on May 19, 2010,
the City Council authorized staff to advertise for construction bids subject to the City's
receipt of signed Memorandums of Understanding (MOU) from the County of Ventura
and other project tenants, Catholic Charities, First 5 Nfl and Interface Children and
Family Services.
On January 16, 2008, the City Council authorized using the Multiple Prime Construction
Management method for the construction of the RCHSC. Using this method, the City is
taking the role of General Contractor, while hiring prime contractors to perform the
different trade components of the work.
Oversight Board
May 15, 2012
Page 2
On January 19, 2011, the City approved the various contracts to construct the RCHSC
and the City started the construction.
On April 17, 2012, the Oversight Board approved the Recognized Obligation Payment
Schedule ("ROPS").
DISCUSSION
The approved ROPS was sent to the Department of Finance ("DOF") on May 1, 2012,
for their review and comment. On May 3, 2012, the DOF responded to staff stating that
the approved ROPS contained errors and has been rejected. The DOF also informed
staff that the all contracts between the City of Moorpark and various contractors
pertaining to the RCHSC would need to be removed, because the contracts were held
by the City and not the Redevelopment Agency.
The RCHSC is a City project that was being funded by the Redevelopment Agency of
the with bond proceeds issued in 2006. All contracts for the design and construction of
the RCHSC are held by the City. This practice of utilizing redevelopment tax increment
for funding City projects has been utilized since the creation of the Redevelopment
Agency. Removing these contracts from the ROPS would halt payments owed to
various contractors and ultimately stop the project a few short months from completion.
ABx1 26 requires, in section 34177(i) that bond proceeds to be used for the purpose for
which the bonds were issued if that purpose can still be achieved. The City and
Successor Agency of the Redevelopment Agency of the City of Moorpark will be
considering the attached agreement, as Authorized by Health and Safety Code sections
34178 and 34180, for the use of bond proceeds for capital improvements needed to
complete the RCHSC project at a special meeting on May 16, 2012.
Due to the newly imposed deadline by the DOF, staff is requesting Oversight Board pre-
approval of an agreement in advance of the City and Successor Agency consideration.
The draft agreement will be provided under separate cover.
STAFF RECOMMENDATION
Approve Agreement.
Attachment I — Bond Proceeds Use Agreement (provided under separate cover)
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ATTACHMENT 1
AGREEMENT FOR THE USE OF BOND PROCEEDS
FOR CAPITAL IMPROVEMENTS
This Agreement for the Use of Bond Proceeds for Capital Improvements
("Agreement"), which is dated for reference as , is hereby
entered into by and between THE CITY OF MOORPARK, ACTING IN ITS
CAPACITY AS SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT
AGENCY OF THE CITY OF MOORPARK ("Successor Agency") and THE CITY OF
MOORPARK, a general law city and municipal corporation ("City"), as follows:
RECITALS
A. On December 21, 2006, the former Redevelopment Agency of the City of
Moorpark ("MRA") issued bonds primarily for the purpose of construction of a
human services center as stated in the Official Statement for the 2006 Bonds.
B. On June 16, 2010, the MRA approved the use of eight million nine hundred
twenty-five thousand five hundred dollars ($8,925,500.00) in bond proceeds
(the "Bond Proceeds") for the purpose of constructing two buildings totaling
approximately 25,000 square feet housing non-emergency medical dental
services, educational uses, and charitable services such as Catholic Charities
and First 5-Neighborhoods for learning, and a County of Ventura medical
building and additional space for the County Human Services Agency called
the Ruben Castro Human Services Center (the "Project").
C. On January 4, 2004, in reliance on the MRA's approval of the use of Bond
Proceeds for the Project, the City engaged HMC Architects for the design and
engineering of the Project. On May 19, 2010, the City issued an invitation for
bids on various portions of the Project after deciding that the Project would be
constructed as a multiple-prime project as recommended by the City's
construction manager Balfour Beatty Construction. On January 19, 2011, the
City awarded the multiple prime contracts for the Project to Jensen Design,
Damar Construction, Pierre Sprinkler, Precision Plumbing, Santa Clarita
Concrete, Steelcon, K&Z Cabinets, Best Roofing, Best Roofing, Center Glass
Company, SDI — Standard Drywall, Inc., Reliable Floor Covering, John Pence
Building Specialties, Environmental Heating and Air, and Taft Electric.
D. On June 29, 2011, Governor Brown signed into law ABx1 26, which was
intended to dissolve redevelopment agencies, including the MRA, statewide.
Shortly after the bill was signed into law, the California Redevelopment
Association, League of California Cities, and some individual cities and
redevelopment agencies brought suit 'to invalidate the bill. During the
pendency of the litigation, most redevelopment powers were stayed and the
CRA had only limited power to act.
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E. The litigation brought by the California Redevelopment Association and others
resulted in the California Supreme Court upholding ABx1 26 and consequently,
on February 1, 2012, the MRA was dissolved pursuant to that legislation and
the City serves as the Successor Agency, with statutory duties and obligations
related to the former MRA's assets, duties, and obligations.
G. Among the duties and obligations of the Successor Agency is the use of any
bond proceeds for "the purposes for which bonds were sold unless the
purposes can no longer be achieved" pursuant to California Health and Safety
Code section 34177(i).
H. The parties agree that the Project is at a critical juncture and that the Bond
Proceeds from the MRA 2006 Tax Increment Bond issuance, which were
previously dedicated to the Project both through the bond debenture
documents and by action of the MRA on June 16, 2010, would assist in
completing the Project; further, the parties acknowledge that completion of the
Project would be financially improbable without the Bond Proceeds.
I. While ABx1 26 generally does not allow the Successor Agency to enter into
new contracts, Health and Safety Code section 34178(a) allows it to enter or
re-enter into agreements with the City upon approval of its oversight board.
This clear statutory authority for the existence of this Agreement between the
City and the Successor Agency allows the City to execute this Agreement for
the transfer of funds between the parties to accomplish the purposes for which
the MRA 2006 Tax Increment Bond issuance was made.
J. On May 15, 2012, the Oversight Board for the Successor Agency to the former
Moorpark Redevelopment Agency approved this Agreement.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited
herein, the City and Successor Agency do hereby AGREE as follows:
1. PROJECT FUNDING. The Successor Agency shall, within ten (10) business
days of the effective date of this Agreement, as defined below, transfer to the City the
amount of five million one hundred thirty-nine thousand dollars ($5,139,000.00) in
proceeds from the 2006 Tax Increment Bond issuance by the MRA. The parties agree
that these Bond Proceeds were the result of bonds issued in whole or in part for the
construction of the Project and that the Project may still be brought to completion, thus
complying with the mandate of Health and Safety Code section 34177(i).
2. USE OF FUNDS AND REPORTING. The City shall do both of the following:
2.1. The City shall use the Bond Proceeds for those portions of the Project for
which the bonds were issued. At no time shall the City have authority to use the
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Bond Proceeds for any non-Project activities nor for any portions of the Project
for which alternate funding was pledged or secured.
2.2. The City shall provide the Successor Agency with quarterly reports that
shall include but not be limited to the amount of Bond Proceeds spent during the
reporting period, the names of all contractors paid with Bond Proceeds, the
activities that were funded by the Bond Proceeds, and the amount of Bond
Proceeds remaining in the City's custody and control.
3. RETURN OF UNSPENT FUNDS. Upon completion of the Project, the City shall
return to the Successor Agency all Bond Proceeds not needed for or spent on the
Project or other uses consistent with the purposes for which the bonds were issued.
4. EFFECTIVE DATE. The parties recognize that pursuant to ABx1 26, the
California Department of Finance has three (3) days to request review of any action of
the Oversight Board and to notify the Successor Agency of its request for review.
Further, the State has ten (10) days following a request for review to challenge any
approval by the Oversight Board. Notwithstanding the prior approval of the Oversight
Board of this Agreement, the parties did not execute the Agreement until after approval
(tacit or explicit) of this Agreement by the Department of Finance. The Agreement is
therefore effective upon the date and year written above
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year written above.
CITY:
CITY OF MOORPARK
Janice Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
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SUCCESSOR AGENCY:
CITY OF MOORPARK ACTING AS
SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY
OF THE CITY OF MOORPARK
Steve Kueny, Executive Director
ATTEST:
Maureen Benson, Agency Secretary
APPROVED AS TO FORM
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