HomeMy Public PortalAboutA 2013-08-13OB_LSAThis Agenda contains a brief general description of each item to be considered. Copies of the
Staff reports or other written documentation relating to each item of business referred to on the
Agenda are on file in the Office of the City Clerk and are available for public inspection. Any
person who has a question concerning any of the agenda items may call the City Manager at
(310) 603 -0220, ext. 200.
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
SPECIAL MEETING
AUGUST 13, 2013
3:00 P.M.
EG�� EV D
AUG 0 8 2013
CITY OF LYNWOOD
CITY CLERKS OFFICE
COUNCIL CHAMBERSa
LYNWOOD CITY HALL
11330 BULLIS ROAD, LYNWOOD, CA 90262
DR. KEITH CURRY
VICE CHAIR
MALCOLM BENNETT
BOARD MEMBER
SARAH MAGANA WITHERS
BOARD MEMBER
LUIS VALENZUELA
CHAIR
MICHELLE BANKS - ORDONE
BOARD MEMBER
OPENING CEREMONIES
1. CALL TO ORDER
BRUNO NAULLS
BOARD MEMBER
PETER WONG
BOARD MEMBER
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
3. ROLL CALL OF BOARD MEMBERS
Michelle Banks- Ordone
Malcolm Bennett
Bruno Naulls
Sarah Magana Withers
Peter Wong
Dr. Keith Curry
Luis Valenzuela
4. PLEDGE OF ALLEGIANCE
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NEW BUSINESS
5 MINUTES OF PREVIOUS MEETINGS:
Regular Meeting — February 26, 2013
6. A RESOLUTION OF THE OVERSIGHT BOARD OF THE CITY OF LYNWOOD,
SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD REDEVELOPMENT
AGENCY, DIRECTING THE COMMENCEMENT OF A REFUNDING OF CERTAIN
BONDS
Comments:
The County of Los Angeles has developed the Program to assist Successor
Agency's ( "SAs ") in refinancing their outstanding redevelopment bonds in an
efficient and cost - effective manner. It is anticipated that refunding bonds will be sold
through a pooled financing structure. The County will establish a joint powers
authority to serve as the issuer of bonds to the capital markets. Bonds issued under
the Program may be sold in one or more series depending on the number of
participating successor : agencies and the various credit and financing
characteristics of the refunded bonds.
Recommendation:
It is recommended that the Oversight Board approve the resolution entitled, " A
RESOLUTION OF THE OVERSIGHT BOARD OF THE CITY OF LYNWOOD,
SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD REDEVELOPMENT
AGENCY, DIRECTING THE COMMENCEMENT OF A REFUNDING OF CERTAIN
BONDS" directing the Successor Agency to undertake proceedings for the
refunding of the 1999 Tax Allocation Bonds, Series A and the Tax Allocation Bonds,
Series 1999, through participation in the County of Los Angeles Redevelopment
Bond Refunding Program ( "Program ").
OVERSIGHT BOARD ITEMS
NONE
/e1010111:10hJtl=1.111
THE NEXT REGULAR OVERSIGHT BOARD MEETING WILL BE POSTED AS NEEDED. THE
NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL, 11330
BULLIS ROAD. CITY OF LYNWOOD. CALIFORNIA
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
TO THE DISSOLVED LYNWOOD REDEVELOPMENT AGENCY
REGULAR MEETING
TUESDAY, FEBRUARY 26, 2013
3:00 P.M.
COUNCIL CHAMBERS
LYNWOOD CITY HALL
11330 BULLIS ROAD, LYNWOOD, CA 90262
1. CALL TO ORDER
Chair Valenzuela called the meeting to order at 3:04 p.m.
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
Tanya Ruiz, Secretary, confirmed that the Agenda was posted correctly.
3. ROLL CALL OF BOARD MEMBERS
Board Members Present
Chair Luis C. Valenzuela
Vice Chair Dr. Keith Curry
Board Member Bruno Naulls
Board Member Sarah Magana Withers
Board Member Peter Wong
Board Members Absent
Board Member Michelle Banks - Ordone
Board Member Malcolm Bennett
4. PLEDGE OF ALLEGIANCE
Chair Valenzuela led the Pledge of Allegiance.
PUBLIC ORAL COMMUNICATIONS
There were no public comments.
NEW BUSINESS
S. MINUTES OF PREVIOUS MEETINGS:
Regular Meeting — January 8, 2013
ITEM
-05�
Lynwood Oversight Board
02 -26 -13
Page 2
On motion of Vice Chair Curry, seconded by Board Member Wong,
unanimously carried (Board Members Bennett and Banks - Ordone being
absent), the Board approved the meeting minutes of January 8, 2013.
6. ADOPTION OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE PERIOD OF JULY 1, 2013 TO DECEMBER 31, 2013 (ROPS 13 -14A)
AND ADMINISTRATIVE BUDGET
Lorry Hempe, Public Works Special Project Manager, provided an update on the
Recognized Obligation Payment Schedule (ROPS) and Administrative Budget,
and informed the Board that there were changes made to the ROPS list since the
posting of the meeting agenda packet. The following line item changes were
made to the ROPS:
Line Item 20 — Settlement Agreement (Rogel v. LRA) ( #19A):
The Total Outstanding Debt or Obligation was changed from To Be Determined
(TBD) to $10 million. Ms. Hempe indicated that there are no current judgments
therefore staff listed TBD under the Total Due During Fiscal Year 13 -14 category.
Line Item 73 — Agreement ( #84):
The Developer's funding amount was re- categorized from the Reserve Balance
funding source to now "Other" funding sources category.
Line Item 76 — Property Disposition of Successor Agency properties ( #86):
Total Outstanding Debt Obligation was increased from $450,000 to $1 million to
allow for any unknown costs which may require clean -up and remediation of
contaminated properties. Lorry Hempe indicated that staff anticipates a cost of
$120,000 for the 13 -14 Fiscal Year, with $70,000 being estimated for the first six
months.
Line Item 86 — 2011 Tax Allocation Bonds Series B:
"Project Area A and Alameda" was added to the Project Area category.
Line Item 87 — Difference between approved actual RPTF funding received and
DOF approved enforceable obligations:
"Project Area A and Alameda" was added to the Project Area category.
Line Item 88 — Enterprise Zone:
Line Item 88 was added to the ROPS with an amount of $72,885 as the Total
Outstanding Debt Obligation.
Line Item 89:
Lynwood Oversight Board
02 -26 -13
Page 3
Unused Bond proceeds from 1999, which will allow staff to utilize towards
projects that have been identified in the Bond Covenants.
Vice Chair Curry requested the Administrative costs the Successor Agency is
incurring. Lorry Hempe informed that the Successor Agency is anticipating costs
of approximately $273,916 however noted that the Administrative Allowance is
capped at $250,000. Ms. Hempe indicated that the capped allowance is small in
comparison to the expenses staff is obligated to pay which includes various
staffing and vendor costs, operating expenses as well as all miscellaneous
administrative expenditures.
On motion of Board Member Wong, seconded by Vice Chair Curry, duly
carried by the following vote, the Board adopted Resolution 2013.004,
approving the Recognized Obligation Payment Schedule for the period of
July 1, 2013 to December 31, 2013 (ROPS 13 -14A) and an Administrative
Budget for FY13 -14:
AYES: Board Members Wong, Withers, Naulls, Vice Chair Curry
and Chair Valenzuela
NOES: None
ABSTENTIONS: None
ABSENT: Board Members Banks - Ordone and Bennett
OVERSIGHT BOARD ITEMS
Vice Chair Curry questioned the Agency's status on the Long Range Property
Management Plan ( LRPMP)
Fred Galante, City Attorney, informed the Board that staff has been delayed in
beginning the LRPMP due to the recent deadlines imposed by the Department of
Finance (DOF); however, Mr. Galante indicated that staff expects to begin working on
the plan soon.
ADJOURNMENT
On motion of Chair Valenzuela, seconded by Vice Chair Curry, unanimously
carried (Board Members Banks - Ordone and Bennett being absent), the meeting
adjourned at 3:37 p.m.
00 AGENDA STAFF REPORT
DATE: August 13, 2013
TO: Honorable Chair and Members of the Lynwood Oversight Board
FROM: Amanda Roberson, Finance Director941-
SUBJECT: A RESOLUTION OF THE OVERSIGHT BOARD OF THE CITY OF
LYNWOOD, SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD
REDEVELOPMENT AGENCY, DIRECTING THE COMMENCEMENT OF
A REFUNDING OF CERTAIN BONDS
Recommendation:
It is recommended that the Oversight Board approve the resolution entitled, " A
RESOLUTION OF THE OVERSIGHT BOARD OF THE CITY OF LYNWOOD,
SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD REDEVELOPMENT
AGENCY, DIRECTING THE COMMENCEMENT OF A REFUNDING OF CERTAIN
BONDS" directing the Successor Agency to undertake proceedings for the refunding of
the 1999 Tax Allocation Bonds, Series A and the Tax Allocation Bonds, Series 1999,
through participation in the County of Los Angeles Redevelopment Bond Refunding
Program ( "Program ").
Background:
Effective February 1, 2012, pursuant to Assembly Bill x1 26 ( "AB 26 "), redevelopment
agencies throughout the State were abolished and prohibited from engaging in future
redevelopment activities. AB 26 enabled the formation of Successor Agencies ( "SAS "),
which have the responsibility of winding down outstanding obligations of the former
redevelopment agencies. AB 26 did not allow SAs to issue any new debt; however, the
legislative language was unclear on whether a debt refinancing was considered a new
debt issuance.
On June 27, 2012, the State passed Assembly Bill 1484 ( "AB 1484 "), which included
provisions permitting SAs to refund outstanding bonds or other obligations of a former
redevelopment agency to achieve savings. Certain SAs have since refunded their
existing redevelopment bonds to provide savings to taxing entities. Several other SA
around the State are in the process of taking actions to refund their existin
redevelopment bonds based on today's favorable interest rate environment.
ITEM
Discussion & Analysis:
The Lynwood Public Financing Authority (the "Authority ") issued $10,235,000 of 1999
Tax Allocation Bonds, Series A (the "Series A Bonds ") for the benefit of the Lynwood
Redevelopment Agency (the "Agency') to fund, among other things, a loan to the
Agency to refinance certain prior obligations and pay for eligible costs of the Lynwood
Redevelopment Project Area A. In 1999, the Authority also issued $1,310,000 of Tax
Allocation Bonds, Series 1999 (the "Series 1999 Bonds', and together with the "Series
A Bonds ", the "Prior Bonds') for the benefit of the Agency to fund, among other things, a
loan to the Agency to refinance certain prior obligations and pay for eligible costs of the
Alameda Project Area. The Prior Bonds are currently outstanding in the amount of
$11.10 million, and have a final term of 2028 with existing interest rates ranging from
5.85% to 6.30 %. Based on today's interest rates, the Prior Bonds could be refunded to
the same term at interest rates ranging from 1.00% to 5.50 %. The refunding bonds (the
"Refunding Bonds") would produce annual savings of about $114,393 (total savings of
$1,659,006). These savings will increase the amount of "residual' property tax available
to be redistributed to other taxing entities based on their proportionate share of the 1 %
property tax levy. The potential savings from the refunding are summarized below.
Name of Bonds Refunded
Annual
Savings
Total
Savings
Total NPV
Savings
1999 Tax Allocation Bonds, Series
A
$100,167
$1,502,512
$1,298,002
Tax Allocation Bonds, Series 1999
$14,226
$156,494
$108,950
TOTAL
$114,393
$1,659,006
$1,406,952
The County of Los Angeles has developed the Program to assist SAs in refinancing
their outstanding redevelopment bonds in an efficient and cost - effective manner. It is
anticipated that refunding bonds will be sold through a pooled financing structure. The
County will establish a joint powers authority to serve as the issuer of bonds to the
capital markets. Bonds issued under the Program may be sold in one or more series
depending on the number of participating successor agencies and the various credit
and financing characteristics of the refunded bonds. The Program offers SA participants
the following benefits:
• County Assistance - The County will lead the effort to prepare all legal documents
and Official Statements, solicit credit ratings and market the bonds.
• Department of Finance Approval - The Program has been assigned dedicated
staffing by the Department of Finance that will streamline the approval process required
under AB 1484. The County will take the lead in seeking approval of the refunding
transaction from the Department of Finance and in obtaining a final and conclusive
determination for ROPS payments related to the Refunding Bonds.
P]
• Continuing Disclosure - The County will assume substantial responsibility for
continuing disclosure related to the Refunding Bonds.
• Efficient Procurement Process - The County has put together a team of financial
and legal experts to work on all aspects of the financing process.
• Economies of Scale - With multiple participants in the financing pool, the successor
agency can achieve reduced costs of issuance.
• Enhanced Financing Structure - The Program will feature structural enhancements
that improve the marketability of the Refunding Bonds and increase savings to local
taxing entities.
The deadline for interested SAs in participating in the 2013 refunding bond pool ( "2013
Pool ") is August 2013. Upon formally joining the 2013 Pool, the County will begin the
process to draft finance documents for review and approval from the Oversight Board
and the Department of Finance in Summer /Fall 2013. The schedule below outlines the
financing milestones associated with the 2013 Pool.
May - July 2013
. One -on -one meetings with SAs (Application Period)
• County JPA formation
August 2013
. Deadline to submit executed Oversight Board
Resolutions
August - Oct.
2013
. Draft documents, credit rating meetings
. Successor Agency, Oversight Board & DOF approvals
November 2013
. County sells the Refunding Bonds
December 2013
. Bond closing
Fiscal Impact:
If the Refunding Bonds are issued under current market conditions, the refinancing will
reduce existing debt payments by $1,659,006 over the life of the refunding bonds, which
will increase the "residual" property tax distribution to all taxing entities. The City will
receive a share of this savings as a residual distribution from the Redevelopment
Property Tax Trust Fund ( "RPTTF "). Based on its recently approved ROPS, the City will
receive about 17% of the total savings generated from the Refunding Bonds, which is
currently estimated to be $282,031. All costs of the refinancing will be paid on a
contingent basis from the bond proceeds.
If the refinancing does not proceed for any reason, any costs already incurred by the SA
will be submitted for reimbursement on the next ROPS pursuant to Health & Safety
Code Section 34171(b) which shall not count against any administrative cost allowance
of the SA.
e
Submitted by:
Approved as to form by:
Fred Galante
Successor Agency Legal Counsel
Coordinated With:
Community Development Department
Attachment:
• Resolution No. - A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY OF LYNWOOD, SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD
REDEVELOPMENT AGENCY, DIRECTING THE COMMENCEMENT OF A
REFUNDING OF CERTAIN BONDS
!]
RESOLUTION NO.
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY OF LYNWOOD, SUCCESSOR AGENCY TO THE
DISSOLVED LYNWOOD REDEVELOPMENT AGENCY,
DIRECTING THE COMMENCEMENT OF A REFUNDING
OF CERTAIN BONDS
WHEREAS, California Assembly Bill No. 26 (First Extraordinary Session) ( "AB1X
26 ") adopted on June 29, 2011, dissolved all redevelopment agencies and community
development agencies in existence in the State of California, as of February 1, 2012, and
designated "successor agencies" and "oversight boards" to satisfy "enforceable obligations" of
the former redevelopment agencies and administer dissolution and wind down of the former
redevelopment agencies; and
WHEREAS, Assembly Bill No. 1484, a follow on bill to ABIX 26, was enacted on June
27, 2012 and provides a mechanism to refund tax allocation bonds under certain circumstances;
and
WHEREAS, pursuant to California Health and Safety Code Section 34173(d), the City
of Lynwood is the successor agency (the "Successor Agency ") to the dissolved Lynwood
Redevelopment Agency ( "Agency "), confirmed by Resolution No. 2012.010 adopted by the City
of Lynwood on January 10, 2012; and
WHEREAS, Health and Safety Code Section 34179(a) provides that each successor
agency shall have an oversight board composed of seven members; and
WHEREAS, the Successor Agency has duly established such oversight board (the
"Oversight Board ") pursuant to Health and Safety Code Section 34179(a); and
WHEREAS, the Oversight Board, pursuant to Health and Safety Code Section
34177.5(f), may direct the Successor Agency to issue bonds to refund the bonds of its former
redevelopment agency to provide debt service savings to the Successor Agency; and
WHEREAS, an oversight board may only direct such a refunding so long as the
successor agency is able to recover its related costs in connection with the transaction;
WHEREAS, the recovery of such costs in connection with such a refunding transaction
shall be supplemental to, and not constrained by, the administrative cost allowance as such
allowance is defined in Health and Safety Code Section 34171(b); and
WHEREAS, the Oversight Board is informed by the Successor Agency that in 1999, the
Lynwood Public Financing Authority (the "Authority ") for the benefit of the Agency issued the
1999 Tax Allocation Bonds, Series A (the "Series A Bonds ") in the aggregate principal amount
of $10,235,000, attributable to the Agency's Redevelopment Project Area A, which bonds are
subject to optional redemption at any time at a redemption price equal to the outstanding
principal amount thereof, plus accrued interest due thereon to the date fixed for redemption,
without premium; and
OHSUSA: 753697448.1
WHEREAS, the Oversight Board is informed by the Successor Agency that in 1999, the
Authority for the benefit of the Agency issued its Tax Allocation Bonds, Series 1999 (the "Series
1999 Bonds ", and together with the "Series A Bonds ", the "Prior Bonds ") in the aggregate
principal amount of $1,310,000, attributable to the Agency's Redevelopment Alameda Project
Area, which bonds are subject to optional redemption at any time at a redemption price equal to
the outstanding principal amount thereof, plus accrued interest due thereon to the date fixed for
redemption, without premium; and
WHEREAS, the Successor Agency, has indicated that there are potential debt service
savings that can be achieved through a refinancing of the Prior Bonds, and the Oversight Board
now wishes to direct the Successor Agency to prepare for the refunding of all or a portion of the
Prior Bonds, and such other bonds of the Agency as may be hereafter identified, to achieve debt
service savings; and
WHEREAS, the County of Los Angeles (the "County "), a political subdivision of the
State of California and taxing entity recipient of property tax revenues, represented by voting
membership on this Oversight Board, has developed a program (the "Refunding Program ") to
assist successor agencies within the County to refund tax allocation bonds pursuant to AB 1484
in order to provide debt service savings to the Successor Agency, efficiencies in issuance and
cost of issuance savings.
NOW THEREFORE, THE OVERSIGHT BOARD OF THE CITY OF LYNWOOD
AS SUCCESSOR AGENCY TO THE DISSOLVED LYNWOOD REDEVELOPMENT
AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. Request for Refunding. Pursuant to Health and Safety Code Section
34177.5(0, the Oversight Board hereby requests the Successor Agency to prepare to issue bonds
(the "Refunding Bonds "), which bonds may be sold to a joint powers authority pursuant to the
Marks -Roos Local Bond Pooling Act (Article 4 (commencing with Section 6584) of Chapter 5 of
Division 7 of Title 1 of the Government Code) following a determination by the Successor
Agency to participate in the Refunding Program, to refund all or a portion of the Prior Bonds;
provided that this request shall not offer any assurance that bonds will be sold by the issuer under
the Refunding Program to refund all or any portion of the Prior Bonds. The Successor Agency is
further requested to return to the Oversight Board, once the refunding issue and related
documents have been prepared, for approval of the refunding pursuant to Health and Safety Code
Section 34180(b).
Section 3. Recovery of Costs. The Oversight Board hereby authorizes and approves the
Successor Agency to cover reasonable related costs incurred in connection with this transaction.
The Successor Agency may recover such costs from the proceeds of the Refunding Bonds or, if
the Successor Agency is not able to issue its bonds or the issuer under the Refunding Program is
not able to issue its bonds relating to the Successor Agency, by including such costs in a future
OHSUSA:753697448.2 2
Recognized Obligation Payment Schedule. The recovery of such costs shall be in addition to and
shall not count against any administrative cost allowance of the Successor Agency as such
allowance is defined in Health and Safety Code Section 34171(b).
Section 4. Severability. If any provision of this Resolution or the application of any
such provision to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Resolution that can be given effect without the invalid
provision or application, and to this end the provisions of this Resolution are severable. The
Oversight Board declares that the Oversight Board would have adopted this Resolution
irrespective of the invalidity of any particular portion of this Resolution.
Section 5. Effective Date. Pursuant to Health and Safety Code Section 34179(h), all
actions taken by the Oversight Board may be reviewed by the California Department of Finance
and, therefore, this Resolution shall be effective five (5) business days after notice to the
Department of Finance unless the Department requests a review of the actions taken in this
Resolution, in which case this Resolution will be effective upon approval by the Department.
PASSED AND ADOPTED by the Oversight Board for the Successor Agency to the
Dissolved Lynwood Redevelopment Agency this 13`h day of August, 2013, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Luis Valenzuela, Chair of the Oversight Board
[Add Secretary certification]
OnSUSA: 753697448.2 3
I certify that the foregoing Resolution was passed and adopted by the Oversight Board for
the Successor Agency to the dissolved Lynwood Redevelopment Agency, at a regular meeting
held on August 6, 2013 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
Luis Valenzuela Chairperson
ATTESTED:
Oversight Board Secretary
OUSUSA:753697448.2 4