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HomeMy Public PortalAbout2020-10-06 LHAThis 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. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO CITYCLERK@LYNWOOD.CA.US OR FILL OUT A FORM PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA Lynwood Housing Authority TO BE HELD ON October 6, 2020 Live Meeting in Council Chamber - 11350 Bullis Road, Lynwood, CA 90262 - or - Web conference via ZOOM - To participate please join via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 878 0665 1907 Passcode: 2020. If interpretation services are needed, please dial (310) 372-7549; conference code 673120 - Duly Posted 10/1/20 by MQ 6:00 PM 1.CALL TO ORDER 2.CERTIFICATION OF AGENDA POSTING BY SECRETARY 3.ROLL CALL OF MEMBERS Aide Castro, Chair Jorge Casanova, Vice Chair Salvador Alatorre, Commissioner Marisela Santana, Commissioner Jose Luis Solache, Commissioner PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NON-AGENDA PUBLIC ORAL COMMUNICATIONS THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE LYNWOOD HOUSING AUTHORITY ON ITEMS WITHIN THE JURISDICTION OF THE LYNWOOD HOUSING AUTHORITY AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY LYNWOOD HOUSING AUTHORITY, BUT LYNWOOD HOUSING AUTHORITY MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) Lynwood Housing Authority - Page 1 of 49 CONSENT CALENDAR ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION. 4.PREVIOUS MEETING MINUTES Comments: Approving previous meeting minutes for Lynwood Housing Authority (CC) September 15, 2020 Recommendation: Staff recommends that the Lynwood Housing Authority approve the following minutes: September 15, 2020 5.BUDGET APPROPRIATION FOR SETTLEMENT ADMINISTRATOR SERVICES RELATED TO THE CONSTRUCTION OF AFFORDABLE HOUSING Comments: The Lynwood Housing Authority will consider appropriating carryover funds from FY 2019-20 to FY 2020-21 to continue the funding of an executed Professional Services Agreement with Kealoha Consulting Corp to provide administrative, monitoring, and reporting services for the development of affordable housing project to satisfy Rogel I Obligations mandated by the Rogel Settlement Agreement (the “Settlement Agreement”), which was entered into on February 10, 2017. (CD) Recommendation: Staff recommends that the City of Lynwood Housing Authority Board adopt the attached resolution entitled "A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) BALANCE IN THE AMOUNT OF $111,058.25 FOR SETTLEMENT ADMINISTRATOR SERVICES PURSUANT TO THE TERMS OF A SETTLEMENT AGREEMENT RELATED TO ROGEL, ET AL. V. STATE OF CALIFORNIA DEPARTMENT OF FINANCE, ET AL., TO COVER THE COST OF SAID SERVICES”. 6.BUDGET APPROPRIATION FOR KANE, BALLMER & BERKMAN, A PROFESSIONAL LAW CORPORATION, FOR SPECIFIED LEGAL SERVICES FOR THE LYNWOOD HOUSING AUTHORITY Comments: The Lynwood Housing Authority will consider a budget appropriation for Kane, Ballmer & Beckman, a professional law firm, to provide special legal counsel for the Lynwood Housing. (CD) Recommendation: Staff recommends that the City of Lynwood Housing Authority Board adopt the attached resolution entitled “A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) IN THE AMOUNT OF $80,000 FOR DESIGNATED LEGAL SERVICES TO THE LYNWOOD HOUSING AUTHORITY PROVIDED BY KANE, BALLMER & BERKMAN, A PROFESSIONAL CORPORATION.” Lynwood Housing Authority - Page 2 of 49 ADJOURNMENT THE LYNWOOD HOUSING AUTHORITY MEETINGS WILL BE POSTED AS NEEDED. THE NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF THE CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. Lynwood Housing Authority - Page 3 of 49 Agenda Item # 4. AGENDA STAFF REPORT DATE: October 6, 2020 TO: Honorable Mayor and Members of the City Council APPROVED BY: Michelle G. Ramirez, Acting City Manager PREPARED BY: Maria Quinonez, City Clerk Silvia Pineda, Assistant to the City Clerk SUBJECT: PREVIOUS MEETING MINUTES Recommendation: Staff recommends that the Lynwood Housing Authority approve the following minutes: September 15, 2020 Background: N/A Discussion and Analysis: N/A Fiscal Impact: N/A Coordinated With: N/A ATTACHMENTS: Description Regular Meeting LHA 09/15/20 Lynwood Housing Authority - Page 4 of 49 1 LYNWOOD HOUSING AUTHORITY MEETING MINUTES September 15, 2020 01. CALL TO ORDER Live Meeting in Council Chamber - 11350 Bullis Road, Lynwood, CA 90262 - or - Web conference via ZOOM - To participate please join via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 878 0249 8972 Passcode: 2020 Meeting called to order at 6:51 pm Chair Castro presiding. 02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK City Clerk Quinonez announced the Agenda had been duly posted in accordance with the Brown Act. 03. ROLL CALL OF COUNCIL MEMBERS PRESENT: COMMISSIONERS ALATORRE, SANTANA, SOLACHE, VICE CHAIR CASANOVA, AND CHAIR CASTRO ABSENT: NONE STAFF PRESENT: Acting City Manager Ramirez, City Attorney Tapia, City Treasurer Camacho and City Clerk Quinonez PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE NON-AGENDA PUBLIC ORAL COMMUNICATIONS NONE CONSENT CALENDAR 04. PREVIOUS MEETING MINUTES MOTION: It was moved by Commissioner Solache, seconded by Commissioner Santana to approve consent calendar. Motion carried by unanimous consent. Lynwood Housing Authority - Page 5 of 49 2 ROLL CALL: AYES: COMMISSIONERS ALATORRE, SANTANA, SOLACHE, VICE CHAIR CASANOVA AND CHAIR CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE 05. PREVIOUS MEETING MINUTES Item 5 approved by consent calendar vote. ROLL CALL: AYES: COMMISSIONERS ALATORRE, SANTANA, SOLACHE, VICE CHAIR CASANOVA AND CHAIR CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE 06. APPROVAL OF THE WARRANT REGISTER-LH Item 6 approved by consent calendar vote. ROLL CALL: AYES: COMMISSIONERS ALATORRE, SANTANA, SOLACHE, VICE CHAIR CASANOVA AND CHAIR CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT Having no further discussion, it was moved to adjourn the City of Lynwood Housing Authority meeting at 6:53 p.m. Motion passed by unanimous consent. ROLL CALL: AYES: COMMISSIONERS ALATORRE, SANTANA, SOLACHE, VICE CHAIR CASANOVA AND CHAIR CASTRO NOES: NONE ABSTAIN: NONE ABSENT: NONE Lynwood Housing Authority - Page 6 of 49 3 _____________________ _____________________ Maria Quinonez, Secretary Aide Castro, Chair Lynwood Housing Authority - Page 7 of 49 Agenda Item # 5. AGENDA STAFF REPORT DATE: October 6, 2020 TO: Honorable Mayor and Members of the City Council APPROVED BY: Michelle G. Ramirez, Acting City Manager PREPARED BY: Michelle G. Ramirez, Director of Community Development SUBJECT: BUDGET APPROPRIATION FOR SETTLEMENT ADMINISTRATOR SERVICES RELATED TO THE CONSTRUCTION OF AFFORDABLE HOUSING Recommendation: Staff recommends that the City of Lynwood Housing Authority Board adopt the attached resolution entitled "A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) BALANCE IN THE AMOUNT OF $111,058.25 FOR SETTLEMENT ADMINISTRATOR SERVICES PURSUANT TO THE TERMS OF A SETTLEMENT AGREEMENT RELATED TO ROGEL, ET AL. V. STATE OF CALIFORNIA DEPARTMENT OF FINANCE, ET AL., TO COVER THE COST OF SAID SERVICES”. Background: In 2006, an action (“Rogel I”) was brought against the former Lynwood Redevelopment Agency (the “Former Agency”), by a group of taxpayers and affordable housing advocates (the “Plaintiffs”). The Plaintiffs alleged that the Former Agency had failed to ensure the development of affordable housing in the City of Lynwood by not making deposits into the Former Agency’s Low and Moderate Income Housing Asset Fund (the “LMIHAF”) as required by Section 33334.3 of the California Health and Safety Code. A settlement was reached in 2009, which set forth the obligations of the Former Agency to construct affordable housing units by making the necessary deposits into the LMIHAF. In 2013, after passage of the redevelopment dissolution law (the “Dissolution Law”), the Plaintiffs secured a judgment (the “Rogel I Judgment”) which specifically required the construction of affordable income housing units and required the Successor Agency to the Lynwood Redevelopment Agency (the “Successor Agency”) to make payments into the LMIHAF in order to cover the cost of constructing the housing units and to pay the legal expenses incurred by the Plaintiffs (the “Rogel I Obligations”). In addition, the Rogel I Judgment required the Successor Agency to report these obligations to the California Department of Finance (the “DOF”) on its Recognized Obligation Payments Schedule (“ROPS”) 14-15A (the “Rogel I ROPS Items”). In 2014, the DOF issued a letter, which determined that the Rogel I ROPS Items were not Enforceable Obligations under the Dissolution Law. In response, the Plaintiffs filed an action against the DOF, the California Lynwood Housing Authority - Page 8 of 49 Director of Finance, the Auditor-Controller of Los Angeles County, the City of Lynwood in its capacity as Successor Agency, the Oversight Board to the Successor Agency and the Lynwood Housing Authority to, among other things, enforce the Rogel I Obligations. Because of this action, on February 10, 2017, the Rogel Settlement Agreement (the “Settlement Agreement”) was entered into by all defendants in the case declaring that the Rogel I Obligations were an enforceable obligation and that certain amounts would be paid to the Successor Agency for deposit into the LMIHAF. Pursuant to the terms of the Settlement Agreement, the DOF has agreed to approve all future ROPS items with respect to the Rogel I Obligations until the Rogel I Obligations are satisfied in full. Furthermore, the DOF agreed to not refuse to approve future ROPS items submitted by the Successor Agency so long as there is adequate documentation to support the need of said funds to fulfill obligations associated with the Rogel I Judgment and Settlement Agreement. Pursuant to the Rogel I Judgment, until all Rogel I Obligations have been satisfied in full, the Agency shall engage a mutually agreed upon third party Administrator to monitor all Rogel activity and report its findings to all parties involved. On November 19, 2019, the Lynwood Housing Authority entered into a Professional Services Agreement (PSA) with Kealoha for third party administrator services for said project in a not to exceed amount of $150,000. Of this amount, $38,941.75 was spent in Fiscal Year (FY) 2019-20. The balance of $111,058.25.needs to be carried over into the FY 2020-21 to complete the tasks of the executed PSA. Discussion and Analysis: On April 14, 2020, the California Department of Finance approved the $150,000 for the ROPS 20-21 period; however, the funds were not included in the Authorities FY 2020-21 budget for expenditures. Staff is requesting authorization to allocate said funds from the unappropriated fund balance to cover cost associated with services provided by the third party administrator to satisfy Rogel I Obligations mandated by said Settlement Agreement. The Project will be a four-story, multi-family building consisting of sixty-six affordable housing units plus one management unit. It will include a mix of forty-seven one-bedroom units, eighteen two-bedroom units and two three-bedroom units, for a total construction cost of approximately $17,000,000. The Consultant’s Agreement includes the following services: Participate in all relevant meetings Review various historical documents Verify through public documents and exterior inspections completed replacement units Review building plans, specs and budgets for proposed Development Review credentials of Contractors Verify existence and maintenance of Rogel funds Monitor Progress of Construction Monitor placing developed units into service Maintain detailed records Verify qualifying covenants are recorded Prepare bi-monthly reports Pursuant to line item No. 23 of the approved Successor Agency’s ROPS 20-21, $150,000 in RPTTF was deposited into the Housing Authorities Rogel 1 account for this project and therefore a request for authorization to use said funds in order. Fiscal Impact: There will be no impact to the General Fund. Funds for Settlement Administrator services will come from the unappropriated fund balance of the Lynwood Housing Authority’s Low and Moderate Income Housing Asset Fund (LMIHAF). Lynwood Housing Authority - Page 9 of 49 Coordinated With: Executive Director's Office Authority Counsel Department of Finance & Administration Services ATTACHMENTS: Description Attachment A - Resolution Exhibit A - Executive Professional Services Agreement Attachment B - ROPS 20-21 DOF Determination Attachment C - Approved ROPS 20-21 Lynwood Housing Authority - Page 10 of 49 1 RESOLUTION NO. A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) BALANCE IN THE AMOUNT OF $111,058.25 FOR SETTLEMENT ADMINISTRATOR SERVICES PURSUANT TO THE TERMS OF A SETTLEMENT AGREEMENT RELATED TO ROGEL, ET AL. V. STATE OF CALIFORNIA DEPARTMENT OF FINANCE, ET AL., TO COVER THE COST OF SAID SERVICES WHEREAS, in 2006, an action (“Rogel I”) was brought against the former Lynwood Redevelopment Agency (the “Former Agency”), by a group of taxpayers and affordable housing advocates (the “Plaintiffs”). The Plaintiffs alleged that the Former Agency had failed to ensure the development of affordable housing in the City of Lynwood by not making deposits into the Former Agency’s Low and Moderate Income Housing Asset Fund (the “LMIHAF”) as required by Section 33334.3 of the California Health and Safety Code. A settlement was reached in 2009 which set forth the obligations of the Former Agency to construct affordable housing units by making the necessary deposits into the LMIHAF; and WHEREAS, in 2013, after passage of the redevelopment dissolution law (the “Dissolution Law”), the Plaintiffs secured a judgment (the “Rogel I Judgment”) which specifically required the construction of affordable income housing units and required the Successor Agency to the Lynwood Redevelopment Agency (the “Successor Agency”) to make payments into the LMIHAF in order to cover the cost of constructing the housing units and to pay the legal expenses incurred by the Plaintiffs (the “Rogel I Obligations”). In addition, the Rogel I Judgment required the Successor Agency to report these obligations to the California Department of Finance (the “DOF”) on its Recognized Obligation Payments Schedule (“ROPS”) 14-15A (the “Rogel I ROPS Items”); and WHEREAS, in 2014, the DOF issued a letter, which determined that the Rogel I ROPS Items were not Enforceable Obligations under the Dissolution Law. In response, the Plaintiffs filed an action against the DOF, the California Director of Finance, the Auditor-Controller of Los Angeles County, the City of Lynwood in its capacity as Successor Agency, the Oversight Board to the Successor Agency and the Lynwood Housing Authority (“Authority”) to, among other things, enforce the Rogel I Obligations. Because of this action, on February 10, 2017, the Rogel Settlement Agreement (the “Settlement Agreement”) was entered into by all defendants in the case declaring that the Rogel I Obligations were an enforceable obligation and that certain amounts would be paid to the Successor Agency for deposit into the LMIHAF; and WHEREAS, pursuant to the terms of the Settlement Agreement, the DOF has agreed to approve all future ROPS items with respect to the Rogel I Obligations until the Rogel I Obligations are satisfied in full. Furthermore, the DOF agreed to not refuse to Lynwood Housing Authority - Page 11 of 49 2 approve future ROPS items submitted by the Successor Agency so long as there is adequate documentation to support the need of said funds to fulfill obligations associated with the Rogel I Judgment and Settlement Agreement; and WHEREAS, pursuant to the Rogel I Judgment, until all Rogel I Obligations have been satisfied in full, the Agency shall engage a mutually agreed upon third party Administrator to monitor all Rogel activity and report its findings to all parties involved; and WHEREAS, on November 19, 2019 the Authority entered into an Agreement with Kealoha for third party administrator services for said project in a not to exceed amount of $150,000; and WHEREAS on April 14, 2020, the Department of Finance approved the $150,000 for the ROPS 20-21 period; however, the funds were not included in the Authorities FY 2020-21 budget for expenditures; and WHEREAS, out of the originally approved $150,000, there is $111,058.25 of unused funds left that need to be carried forwarded into the FY 2020-21 Authority budget to be used to complete the tasks of the original agreement; and WHEREAS, staff is requesting authorization to allocate said funds from the unappropriated fund balance to cover cost associated with services provided by the third party administrator to satisfy Rogel I Obligations mandated by said Settlement Agreement; and WHEREAS, pursuant to line item No. 23 of the approved Successor Agency’s ROPS 20-21, $150,000 in RPTTF was deposited into the Housing Authorities Rogel 1 account for this project and therefore a request for authorization to use said funds in order; and WHEREAS, the Administrator services outlined in consultant scope are a required element in the fulfillment of the Rogel Settlement Obligation, therefore funding for an agreement for said services is in order. NOW, THEREFORE, THE HOUSING AUTHORITY BOARD OF THE CITY OF LYNWOOD DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. The Lynwood Housing Authority herby authorizes the allocation of $111,058.25 from the unappropriated LMIHAF (“Rogel I”) fund balance for Settlement Administrator services related to the Rogel Settlement Agreement pursuant to the Rogel I Judgment, to cover payments as needed for said services at the hourly rates further described in the attached Exhibit A (which is the balance of the unused funds left from the original Professional Services Agreement). Lynwood Housing Authority - Page 12 of 49 3 Section 2. The Lynwood Housing Authority Board hereby directs the Department of Finance and Administration Services to take the necessary steps to adjust the budget to reflect the authorized appropriation for use of said unappropriated LMIHAF balance as follows: Fund Dept. Div. Object Description Amount 1013 51 214 62015 Professional/Contr. Services $111,058.25 1013 Budgetary Fund Balance ($111,058.25) Section 3. The Lynwood Housing Authority Board hereby authorizes the Executive Director or his designee to carry out any transactions necessitated in relation to engagement of the Settlement Administrator for an amount not to exceed $111,058.25. Section 4. This resolution shall become effective immediately upon its adoption. Section 5. The Secretary shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED and ADOPTED this 6th day of October 2020. Aide Castro Chair ATTEST: Maria Quinonez Secretary APPROVED AS TO FORM: APPROVED AS TO CONTENT: Noel Tapia Michelle Ramirez Authority Counsel Acting Executive Director Lynwood Housing Authority - Page 13 of 49 Lynwood Housing Authority - Page 14 of 49 Lynwood Housing Authority - Page 15 of 49 Lynwood Housing Authority - Page 16 of 49 Lynwood Housing Authority - Page 17 of 49 Lynwood Housing Authority - Page 18 of 49 Lynwood Housing Authority - Page 19 of 49 Lynwood Housing Authority - Page 20 of 49 Lynwood Housing Authority - Page 21 of 49 Lynwood Housing Authority - Page 22 of 49 Lynwood Housing Authority - Page 23 of 49 Lynwood Housing Authority - Page 24 of 49 Lynwood Housing Authority - Page 25 of 49 Lynwood Housing Authority - Page 26 of 49 Lynwood Housing Authority - Page 27 of 49 Lynwood Housing Authority - Page 28 of 49 Lynwood Housing Authority - Page 29 of 49 Lynwood Housing Authority - Page 30 of 49 Lynwood Housing Authority - Page 31 of 49 Lynwood Housing Authority - Page 32 of 49 Lynwood Housing Authority - Page 33 of 49 Lynwood Housing Authority - Page 34 of 49 Recognized Obligation Payment Schedule (ROPS 20-21) - Summary Filed for the July 1, 2020 through June 30, 2021 Period Successor Agency: Lynwood County: Los Angeles Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 20-21A Total (July - December) 20-21B Total (January - June) ROPS 20-21 Total A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 6,346,619 $ 2,242,023 $ 8,588,642 F RPTTF 6,221,619 2,117,023 8,338,642 G Administrative RPTTF 125,000 125,000 250,000 H Current Period Enforceable Obligations (A+E) $ 6,346,619 $ 2,242,023 $ 8,588,642 Certification of Oversight Board Chairman: Name Title Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. /s/ Signature Date Lynwood Housing Authority - Page 35 of 49 Lynwood Recognized Obligation Payment Schedule (ROPS 20-21) - ROPS Detail July 1, 2020 through June 30, 2021 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $58,067,346 $8,588,642 $- $- $- $6,221,619 $125,000 $6,346,619 $- $- $- $2,117,023 $125,000 $2,242,023 6 2011 Tax Allocation Bonds Series A Bonds Issued After 12/31/10 03/07/ 2011 03/01/2038 US Bank Corp Bond issue to fund non housing projects Project Area A 14,723,030 N $- - - - - - $- - - - - - $- 7 2011 Tax Allocation Bonds Series A Reserves 03/07/ 2011 03/01/2038 US Bank Corp H&S34171(d)(1)(A) To hold reserve for future Debt Service payment due to uneven semi- annual debt service payment. Project Area A 1,596,376 N $1,596,376 - - - 495,688 - $495,688 - - - 1,100,688 - $1,100,688 8 2011 Tax Allocation Bonds Series B Bonds Issued After 12/31/10 03/07/ 2011 03/01/2038 US Bank Corp Bond issue to fund housing projects Project Area A 8,068,199 N $391,394 - - - 391,394 - $391,394 - - - - - $- 9 Bond Oversight Project Management Costs 10/02/ 1999 03/01/2038 Various vendors, staffing cost, City of Lynwood, misc. costs and legal cost. Costs relating to disclosure (NBS, BLX) Oversight on bonds to ensure compliance with covenants, accounting and disclosure requirements. Financial Statements. Bank Fees. Adjustments made the the Trustees to cover reserve requirements. Bond disclosures Project Area A & Alameda - N $- - - - - - $- - - - - - $- 11 1999 City and Agency Cooperation Agreement (#7) City/County Loan (Prior 06/28/11), Cash exchange 09/07/ 1999 09/30/2019 City of Lynwood Loan to carry out 3100 E. Imperial Hwy project (34167(d)(2) H&S) Project Area A 338,836 N $- - - - - - $- - - - - - $- 15 Agreement - The Gardens OPA/DDA/ Construction 02/23/ 2009 02/23/2064 Atlantic Gardens formerly Cedars Engineering Annual Rental Subsidy (The Gardens). Rental apartment housing to qualified seniors. Low and Very Low Income. Project Area A & Alameda 989,430 N $23,010 - - - - - $- - - - 23,010 - $23,010 18 Agreement -Unemployment Miscellaneous 07/01/ 2016 06/30/2018 Various employees, misc. cost, & Unemployment obligation incurred if Agency ceases to Project Area A & - N $- - - - - - $- - - - - - $- Lynwood Housing Authority - Page 36 of 49 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF staffing cost exist or employees are terminated. (H&S 34171(d)(1)(C)(H&S 34167(d)(3)) Alameda 20 Notice of Entry of Judgment - Rogel v LRA (Case No. BS106592) SEE NOTES FOR SUPPLEMENT Litigation 03/23/ 2009 06/30/2015 Housing Authority: LMIHAF Re. Notice of Ruling Re. Order March 23, 2009 and Notice of Entry of Judgment April 23, 2013 . Taking into account units already constructed, 65 units remain to be produced by March 31, 2015. 51 units must be restricted to very low income. Project Area A & Alameda 19,475,284 N $4,000,000 - - - 4,000,000 - $4,000,000 - - - - - $- 21 Notice of Entry of Judgment - Rogel v LRA (Case No. BS106592) SEE NOTES FOR SUPPLEMENT Litigation 04/23/ 2013 06/30/2015 LMIHAF Notice of Entry of Judgment (April 23, 2013). Outstanding debt to the LMIHF. (Case # BS106592)] Project Area A - N $- - - - - - $- - - - - - $- 22 Order Awarding Plaintiffs Attorneys' Fees and Costs.(Case No. BS106592) SEE NOTES FOR SUPPLEMENT Litigation 03/23/ 2009 06/30/2015 Counsels for Plaintiffs (Public Counsel Law Center) Order Awarding Plaintiffs Attorneys' Fees and Costs. Project Area A & Alameda 1,943,315 N $206,968 - - - 103,484 - $103,484 - - - 103,484 - $103,484 23 Notice of Entry of Judgment - Rogel v LRA (Case No. BS106592) SEE NOTES FOR SUPPLEMENT Litigation 03/23/ 2009 06/30/2015 Consultant to serve as "Administrator" Re. Notice of Ruling Re. Order March 23, 2009 and Notice of Entry of Judgment April 23, 2013 . Court Ruling requires hiring of "Administrator." Project Area A & Alameda 150,000 N $150,000 - - - 75,000 - $75,000 - - - 75,000 - $75,000 24 Notice of Entry of Judgment - Rogel v LRA (Case No. BS106592) SEE NOTES Litigation 03/23/ 2009 06/30/2015 Staffing cost,MDG, misc. costs, Kane Ballmer and Berkman; Agency Re. Notice of Ruling Re. Order March 23, 2009 and Notice of Entry of Judgment April 23, 2013 .Order Project Area A & Alameda - N $- - - - - - $- - - - - - $- Lynwood Housing Authority - Page 37 of 49 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF FOR SUPPLEMENT Counsel; Oversight Board Counsel. Awarding Plaintiffs Attorneys' Fees and Costs.(Case No. BS106592) 44 Cox Castle & Nicholson (LRA v. Barry Ross, et all (Case No. CV11 02207)) & Recoup Clean up Cost and Damages at Brownfield areas Litigation 07/01/ 2016 06/30/2018 Cox Castle and Nicholson & Agency Counsel & staffing costs Complaint for Damages -Agency Special Counsel for remediation of Imperial Hwy (Alameda Triangle; State/East Imperial; and Northgate project Brownfield area. Long Beach Blvd./Josephine St. Project Area A - N $- - - - - - $- - - - - - $- 45 Contract- Remediation Remediation 07/01/ 2016 06/30/2018 Special counsel, Agency Counsel & Environmental Consultants Agency Special Counsel for remediation of Imperial Hwy. and other Brownfield area Project Area A & Alameda - N $- - - - - - $- - - - - - $- 48 Agreement -All Counsels- Pending Litigations Litigation 07/01/ 2016 06/30/2018 Special counsels, Agency Counsel, staffing costs, fiscal consultants, environmental consultants Attorneys costs (pending litigation) & (LAUSD v County of Los Angeles, et al (3/29/2007); Northgate; etc.). legal fees incurred in connection with Lynwood and DOF v. Rogel, Case No. 23-2013-80001520 H&S 34171d; Lynwood Successor Agency v. DOF Project Area A & Alameda - N $- - - - - - $- - - - - - $- 50 LRA v. Barry Ross, et all (Case No. CV11 02207) - Recoup Clean up Cost and Damages Litigation 03/15/ 2011 06/30/2018 Special counsels; Agency Counsel; Complaint for Damages -Agency Counsel for remediation of Imperial Hwy (Alameda Triangle; State/East Imperial; and Northgate project Brownfield area. Long Beach Blvd./Josephine St. Project Area A & Alameda - N $- - - - - - $- - - - - - $- 57 Bond Funded Projects Improvement/ Infrastructure 10/01/ 1999 03/01/2038 Various vendors, City of Lynwood, misc. cost and Use of bond proceeds per bond covenants and funds held by Project Area A & Alameda - N $- - - - - - $- - - - - - $- Lynwood Housing Authority - Page 38 of 49 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF staffing costs Trustees. 60 Administrative Cost Allowance Admin Costs 07/01/ 2016 06/30/2018 Various staffing cost, vendors, City of Lynwood, & misc. expenses. County Auditor Controller did not allocate an administrative cost allowance in the 2nd ROPS because the DOF approved RPTTF exceeds actual tax increment distribution. H & S 34171 (b) limits administrative expenses to 3% for 2012-13 per DOF Project Area A and Alameda 250,000 N $250,000 - - - - 125,000 $125,000 - - - - 125,000 $125,000 68 Oversight Agreement - DTSC Professional Services 06/01/ 2010 06/30/2018 Dept. of Toxic Substances Control Process used to evaluate Brownfields properties and reimburse DTSC for its costs. Covers properties within project areas. Project Area A and Alameda - N $- - - - - - $- - - - - - $- 69 Agreement - DTSC Project Management Costs 06/01/ 2010 06/30/2018 Staffing cost, legal cost Environmental oversight Project Area A and Alameda - N $- - - - - - $- - - - - - $- 73 Agreement OPA/DDA/ Construction 10/27/ 2005 06/30/2018 Various developers Developers' deposit releases and use of deposits Project Area A - N $- - - - - - $- - - - - - $- 74 Agreement Project Management Costs 01/01/ 2016 06/30/2018 Staffing Cost Release of deposits and project closures to meet terms of releases Project Area A & Alameda - N $- - - - - - $- - - - - - $- 76 Property Disposition of Successor Agency properties Property Dispositions 07/01/ 2016 06/30/2018 Various Vendors, Agency Counsel , misc. cost and staffing cost Preparation of Successor Agency property for disposal including maintenance, fencing, listing, posting etc. Project Area A & Alameda - N $- - - - - - $- - - - - - $- 81 ENA - Northgate OPA/DDA/ Construction 12/01/ 2009 06/30/2014 Various vendors, legal cost, staffing cost ENA- wind down ENA Project Area A - N $- - - - - - $- - - - - - $- 86 2011 Tax Allocation Bonds Series B Bonds Issued After 12/31/10 03/07/ 2011 03/01/3038 US Bank Corp H&S34171(d)(1)(A) To hold reserve for Debt Service Project Area A & 194,031 N $194,031 - - - 194,031 - $194,031 - - - - - $- Lynwood Housing Authority - Page 39 of 49 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF payment due to uneven semi- annual debt service payment. Assist in the debt service coverage ratio for continuing disclosure. Alaemda 87 Difference between approved actual RPTTF funding received and DOF approved enforceable obligations RPTTF Shortfall 01/01/ 2016 06/30/2017 Various vendors, staffing cost, legal costs, and others Per DOF direction to list difference between approved enforceable obligations and actual RPTTF Project Area A and Alameda 778,611 N $778,611 - - - 778,611 - $778,611 - - - - - $- 92 Tax Allocation Revenue Refunding Bonds (Project Area A), Series 2013 A Revenue Bonds Issued After 12/31/10 12/24/ 2013 09/01/2028 US Bank Corp Refunding of 1999 Tax Allocation Bonds Project Area A. Tax Allocation Revenue Refunding Bonds (Project Area A), Series 2013 A Project Area A 8,052,796 N $- - - - - - $- - - - - - $- 93 Tax Allocation Revenue Refunding Bonds (Project Area A), Series 2013 A -Reserve Reserves 12/24/ 2013 09/01/2028 US Bank Corp H&S34171(d)(1)(A) To hold reserve for Debt Service payment due to uneven semi- annual debt service payment. Assist in the debt service coverage ratio for continuing disclosure. Project Area A 912,244 N $912,244 - - - 141,122 - $141,122 - - - 771,122 - $771,122 94 Alameda Project Area Tax Allocation Refunding Bonds, Series 2013A Revenue Bonds Issued After 12/31/10 12/24/ 2013 09/01/2024 US Bank Corp Refunding of 1999 Tax Allocation Alameda bonds. Alameda Project Area Tax Allocation Refunding Bonds, Series 2013A Alameda 557,694 N $48,508 - - - 42,289 - $42,289 - - - 6,219 - $6,219 95 Alameda Project Area Tax Allocation Refunding Bond, Series 2013A- Reserve Revenue Bonds Issued After 12/31/10 12/24/ 2013 09/01/2024 US Bank Corp H&S34171(d)(1)(A) To hold reserve for Debt Service payment due to uneven semi- annual debt service payment. Assist in the debt service Alameda 37,500 N $37,500 - - - - - $- - - - 37,500 - $37,500 Lynwood Housing Authority - Page 40 of 49 A B C D E F G H I J K L M N O P Q R S T U V W Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 20-21 Total ROPS 20-21A (Jul - Dec) 20-21A Total ROPS 20-21B (Jan - Jun) 20-21B Total Fund Sources Fund Sources Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF coverage ratio for continuing disclosure. 101 2010 Promissory Note City/County Loan (Prior 06/28/11), Cash exchange 05/04/ 2010 06/30/2014 City of Lynwood 2010 Promissory Note between the City and former Lynwood Redevelopment Agency Project Area A - N $- - - - - - $- - - - - - $- Lynwood Housing Authority - Page 41 of 49 Lynwood Recognized Obligation Payment Schedule (ROPS 20-21) - Report of Cash Balances July 1, 2017 through June 30, 2018 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. A B C D E F G H ROPS 17-18 Cash Balances (07/01/17 - 06/30/18) Fund Sources Comments Bond Proceeds Reserve Balance Other Funds RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent, grants, interest, etc. Non-Admin and Admin 1 Beginning Available Cash Balance (Actual 07/01/17) RPTTF amount should exclude "A" period distribution amount. - 2 Revenue/Income (Actual 06/30/18) RPTTF amount should tie to the ROPS 17-18 total distribution from the County Auditor-Controller 6,351,708 2G. Amount includes received Agency RPTTF and County held funds for bond payments: $2,338,408 for Period A; $4,013,300 Period B. 3 Expenditures for ROPS 17-18 Enforceable Obligations (Actual 06/30/18) 6,153,973 3G. Includes total SA expenditure and tax increment withheld by county for bond payment: Intercepted bod payments totaled $2,596,208; Agency paid expenditures totaled $3,557,765. 4 Retention of Available Cash Balance (Actual 06/30/18) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) Lynwood Housing Authority - Page 42 of 49 5 ROPS 17-18 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 17-18 PPA form submitted to the CAC No entry required 1,199,743 G5. Taken from prior year ending cash deficit 6 Ending Actual Available Cash Balance (06/30/18) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $- $- $- $- $(1,002,008) Lynwood Housing Authority - Page 43 of 49 Lynwood Recognized Obligation Payment Schedule (ROPS 20-21) - Notes July 1, 2020 through June 30, 2021 Item # Notes/Comments 6 7 8 9 11 15 18 20 21 22 23 Litigation expenses related to Judgment for Rogel v.Lynwood Redevelopment Agency (LRA) Case No. BS106592. Per DOF, to the extent the Agency can provide documentation, such as executed contracts that include a detailed scope of work outlining the role of an 'Administrator' mentioned under the description of the item to support the requested amount, this item may be considered enforceable on future ROPS. The Agency has entered into a contract for Administrator services pursuant to the Court order/Settlement Agreement. 24 44 45 48 50 57 60 68 69 73 74 76 81 86 87 Shortfall from Line Item #20 during ROPS 19-20 period. 92 93 Lynwood Housing Authority - Page 44 of 49 94 95 101 Lynwood Housing Authority - Page 45 of 49 Agenda Item # 6. AGENDA STAFF REPORT DATE: October 6, 2020 TO: Honorable Mayor and Members of the City Council APPROVED BY: Michelle G. Ramirez, Acting City Manager PREPARED BY: Michelle G. Ramirez, Director of Community Development SUBJECT: BUDGET APPROPRIATION FOR KANE, BALLMER & BERKMAN, A PROFESSIONAL LAW CORPORATION, FOR SPECIFIED LEGAL SERVICES FOR THE LYNWOOD HOUSING AUTHORITY Recommendation: Staff recommends that the City of Lynwood Housing Authority Board adopt the attached resolution entitled “A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) IN THE AMOUNT OF $80,000 FOR DESIGNATED LEGAL SERVICES TO THE LYNWOOD HOUSING AUTHORITY PROVIDED BY KANE, BALLMER & BERKMAN, A PROFESSIONAL CORPORATION.” Background: In 2017, the Lynwood Housing Authority entered into an agreement with the law firm of Kane Ballmer & Berkman (“KBB”), a professional law corporation, to assist with the complicated issues involving a lawsuit (the “Rogel I Judgment”) and settlement as related to the construction of affordable housing units. KBB has provided ongoing legal representation in connection with the Rogel I Judgment including the negotiation, drafting, and implementation of a Disposition and Development Agreement (“DDA”) with Lynwood Family Apartments (the developer contracted to produce the affordable housing units) and the issuance of Housing Bond financing for the affordable housing units. The Lynwood Housing Authority needs to continue the services of KBB until the Lynwood Housing Authority has satisfied the Rogel I Judgment. However, it was recently discovered that the funding needed for KBB services was not included in the City's FY 2020-21 Annual Operating Budget. It is now being requested to approve the attached resolution that includes the needed budget adjustment to the City's FY 2020-21 Annual Operating Budget to cover expenditures as related to special legal counsel for the Lynwood Housing as related to the Rogel I Judgment. Discussion and Analysis: KBB is a law firm with a long history of representation of public entities in matters involving the negotiation of Lynwood Housing Authority - Page 46 of 49 disposition and development agreements for significant projects. KBB has represented the City of Lynwood and its constituent entities for more than two decades. The firm is intimately familiar with and has worked on many of the more significant projects in the City. KBB is currently providing designated legal services to the Lynwood Housing Authority as related to the Rogel I Judgment. A budget adjustment is needed to the City's FY 2020-21 Annual Operating Budget in an amount not to exceed $80,000 to continue these services, as funds were inadvertently not included at the time the budget was completed. Fiscal Impact: There will be no fiscal impact to the General Fund. Funds for KBB services will come from the unappropriated fund balance of the Lynwood Housing Authority’s Low and Moderate Income Housing Asset Fund (LMIHAF). Coordinated With: Executive Director's Office Authority Counsel Department of Finance & Administration Services ATTACHMENTS: Description Attachment A - Resolution Lynwood Housing Authority - Page 47 of 49 1 RESOLUTION NO. A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY AS HOUSING SUCCESSOR TO THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE ALLOCATION OF UNAPPROPRIATED LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF) IN THE AMOUNT OF $80,000 FOR DESIGNATED LEGAL SERVICES TO THE LYNWOOD HOUSING AUTHORITY PROVIDED BY KANE, BALLMER & BERKMAN, A PROFESSIONAL CORPORATION WHEREAS, in 2017, the Lynwood Housing Authority entered into an agreement with the law firm of Kane Ballmer & Berkman (“KBB”), a professional law corporation, to assist with the complicated issues involving a lawsuit (the “Rogel I Judgment”) and settlement as related to the construction of affordable housing units. ; and WHEREAS, KBB has provided ongoing legal representation in connection with the Rogel I Judgment including the negotiation, drafting, and implementation of a Disposition and Development Agreement (“DDA”) with Lynwood Family Apartments (the developer contracted to produce the affordable housing units) and the issuance of Housing Bond financing for the affordable housing units. WHEREAS, the Lynwood Housing Authority needs to continue the services of KBB until the Lynwood Housing Authority has satisfied the Rogel I Judgment. WHEREAS, a budget adjustment to City of Lynwood's FY 2020-21 Annual Operating Budget is needed to cover expenditures as related to special legal counsel for the Lynwood Housing as related to the Rogel I Judgment. NOW, THEREFORE, THE HOUSING AUTHORITY BOARD OF THE CITY OF LYNWOOD DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. The Lynwood Housing Authority herby authorizes the allocation of $80,000 from the unappropriated Low and Moderate Income Housing Asset Fund (LMIHAF) (“Rogel I”) fund balance for legal services related to the Rogel Settlement Agreement pursuant to the Rogel I Judgment, to cover payments as needed for said services. Section 2. The Lynwood Housing Authority Board hereby directs the Department of Finance and Administration Services to take the necessary steps to adjust the budget to reflect the authorized appropriation for use of said unappropriated LMIHAF balance as follows: Fund Dept. Div. Object Description Amount 1013 51 214 62001 Legal Fees $80,000 1013 Budgetary Fund Balance ($80,000) Lynwood Housing Authority - Page 48 of 49 2 Section 3. The Lynwood Housing Authority Board hereby authorizes the Executive Director or his designee to carry out any transactions necessitated in relation to engagement of KBB for designated legal services as related to the Rogel I Judgment for an amount not to exceed $80,000. Section 4. This resolution shall become effective immediately upon its adoption. Section 5. The Secretary shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED and ADOPTED this 6th day of October 2020. Aide Castro Chair ATTEST: Maria Quinonez Secretary APPROVED AS TO FORM: APPROVED AS TO CONTENT: Noel Tapia Michelle Ramirez Authority Counsel Acting Executive Director Lynwood Housing Authority - Page 49 of 49