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Home My Public Portal AboutM 2014-02-04 - LSACITY OF LYNWOOD AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY REGULAR MEETING February 4, 2014 The City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency of the City of Lynwood met in a regular meeting at Lynwood City. Council Chambers, 11330 Bullis Road on the above date at 6:49 p.m. Mayor Castro presiding. Council Members Alatorre, Santillan -Beas, Solache, Hernandez and Castro were present. Also present were Interim City Manager Warne, City Attorney Garcia, City Clerk Quinonez and Deputy City Treasurer Sheila Harding. City Clerk Quinonez announced that the Agenda had been duly posted in accordance with the Brown Act. It was moved by Council Member Alatorre, seconded by Mayor Pro Tern Hernandez to take Item #3 of the Lynwood Successor Agency agenda together with Item #12 of the City Council Agenda. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORAL COMMUNICATIONS NONE CONSENT CALENDAR Mayor Castro stated that Item #3 is on the consent calendar but for the record, "Item number three will be taken with one solid motion." It was moved by Council Member Alatorre, seconded by Council Member Santillan- Beas to approve the consent calendar and to receive and file staff reports. AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE, HERNANDEZ AND CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE 1 Item #1. MINUTES OF THE PREVIOUS MEETINGS: Regular Meeting of September 3, 2013. Special Meeting of September 11, 2013 Item #2. APPROVAL OF THE WARRANT REGISTER RESOLUTION NO. 2014.004 ENTITLED: RESOLUTION OF-THE LYNWOOD CITY COUNCIL AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS Item #3. Mayor Castro pulled Item #3 — ADOPTION OF THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 2014 TO DECEMBER 2014 (ROPS 14 -15A) AND ADOPTION OF THE ADMINISTRATIVE BUDGET Mayor Castro Pulled Item #3. Ms. Castro provided a brief overview of what ROP's entails. Mayor Castro stated the City of Lynwood has been the only City who has been successful in keeping their funding after the desolation of the Redevelopment Agency through the Successor Agency. After research, Mayor Castro and Mayor Pro Tern Hernandez found a section in a code placing restrictions on the manner in which to spend the funding. However, Council will fight to maintain the funds for current projects. City Manager stated that there were some adjustments to the ROPS. Lorry Hempe discovered some corrections they needed to make on page 6 of the ROP's. Ms. Hempe stated that part of the recognized obligation payment schedule is the reporting of what the City intends to spend its funds for the first half of fiscal year 2015 and another reporting was spent funds for 2014. Lorry Hempe read the corrections into the record, "First corrections is on line item #9 on page 6 which is the bond oversight, the new number is going $32,766 from what was originally posted. On the same page line item #26 that number should be $4,000. Council Member Solache asked for the original and updated numbers to be read into the record. Mayor Castro read the difference in the amount into the record, 'bk so line item #9 which is the bond oversight the amount was $74,898 the corrected amount is $32,766 for item #26 the original number is $29,500 the amount is now $4,000." Lorry Hempe continued stating the corrections in the ROP's chart, "on line item #34 page 7, this is the payment for Habitat for Humanity, this new figure should be $69,391. "' Mayor Castro stated line item #34 was missing the original amount and asked whether it was supposed to be zero. 2 Lorry stated the original amount was over $600,397. She stated that on line item #41 for the Fresh and Easy Project, the new amount is $15,000. Mayor Castro stated the original amount for the Fresh and Easy Project was $25,000. Lorry stated they would present this item, once approved by the council, to the oversight board before and also wanted to request for the Lynwood Successor Agency to allow any further modifications to the ROP's chart. Mayor Castro requested for staff to provide Council a green memo in the event there were any corrections. Alatorre inquired how they would justify the spending of funds while the lot was vacant Litigation is involved and mayor stated the question will be addressed in closed session. Mayor Castro requested for Lorry Hempe to hold her response due to litigation reasons and will address the question in closed session. Hernandez asked if the department was being audited every six months and whether they report every six months to the state or the Finance department. In addition he asked who oversees the audit. Lorry stated they submit the ROP's report to the State Department of Finance, State Controller and County Controller for review and additional documentation is provided if the auditors request it. Additionally, State Department of Faineance determines what can be approved.' Mayor Pro Tern Hernandez stated there is a difference between reviewing and conducting an audit. Lorry stated the finance holds an in house annual audit rather than an independent audit. Mayor Pro Tern Hernandez asked Ms. Hempe if the City has held an independent audit. Lorry Hempe stated the City of Lynwood has not help an independent audit. Council Member Santillan -Beas asked what funding has the City Lost lost. Lorry stated that most agreements and housing have been routed to other departments. Mayor Castro stated there was a housing project for alameda triangle project and mentioned the difference between a disposition and contraption agreement. City Manger stated over time the ROPS will go away with the dissolution of the Redevelopment Agency. 3 Sarah Withers made a point of clarification and stated there was an independent audit who consults with the annual auditors. Mayor requested a green memo outlining the auditing process. . Sarah Withers stated these documents needed to be reviewed very diligently. Ms. Withers stated that Vazquez & Company was selected through an RFP process to audit the City. Alatorre stated mistakes found by the auditor would be cured. It was moved by Mayor Castro, seconded by Mayor Pro Tern Hernandez to, approve staff's recommendation. AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -SEAS, SOLACHE, HERNANDEZ AND CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE RESOLUTION NO. 2014.005 ENTITLED: A RESOLUTION OF THE CITY AS THE SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE COVERING THE PERIOD OF JULY 1, 2014 TO DECEMBER 31, 2014 (ROPS 14 -15A) AND ADOPTING THE ADMINISTRATIVE BUDGET Item #4. TREASURER'S QUARTERLY INVESTMENT REPORT Mayor Pro Tern Hernandez recommended staff for bonds to go back to the finance, department since the newly appointed City Treasurer did not possess a license. Mayor Castro requested a green memo with additional the additional bond research. CLOSED SESSION Item #5 WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.9 EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) 1. Name of Case: Rogel v. City of Lynwood, Los Angeles Superior Court No. BS106592 2. Name of Case Lynwood Redevelopment Agency and City of Lynwood v. Barry Ross, eta.al. United States District Court Case No. CV11- 02207MMM Non - Reportable Action ADJOURNMENT 4 Having no further discussion, it was moved by Council Member Solache, seconded by Council Member Alatorre and carried to adjourn the regular City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency meeting at 7:15 p.m. Aide Castro, Mayor 5 FM FA F MW JKWIl"woen ROOM