2013/04/10 Successor Agency Oversight Board Agenda Packet Distribution (ec/cc):
Board Members(7);City Manager;
aJ„sear P4e.r City Attorney; Board Attorney;
,:` Board Clerk; Public Binder; City
Website;OB/SA File
City of Rohnert Park • 130 Avram Avenue ♦ Rohnert Park, California 94928
PHONE: (707) 588-2227 • FAX: (707) 792-1876 ♦ WEB: www.rpcity.orp
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
CITY OF ROHNERT PARK
(Successor Agency of the Former Community Development Commission of the
City of Rohnert Park)
REGULAR MEETING AGENDA
Wednesday, April 10, 2013, 2:00 p.m.
MEETING LOCATION: CITY HALL - COUNCIL CHAMBER
130 Avram Avenue, Rohnert Park, California
The Oversight Board welcomes your attendance, interest and participation at its public meetings.
Oversight Board agendas and minutes may be viewed at the City of Rohnert Park website at:
www.rpcitv.org.
PUBLIC HEARINGS
The Oversight Board may discuss and/or take action on any or all of the items listed on this agenda. If
you challenge decisions of the Oversight Board or the Successor Agency City of Rohnert Park in court,
you may be limited to raising only those issues you or someone else raised at public hearing(s)described
in this agenda, or in written correspondence delivered to the Successor Agency City of Rohnert Park, at,
or prior to the public hearing(s).
PUBLIC COMMENTS
For public comment on items listed or not listed on the agenda, or on agenda items if unable to speak at
the scheduled time(limited to three minutes per appearance and a 30 minute total time limit,or allocation
of time based on number of speaker cards submitted)
PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING
*SEE NOTE AT THE END OF THIS AGENDA
Copies of all staff reports and documents subject to disclosure that relate to each item of business referred
to on the agenda are available for public inspection before each regularly scheduled Board meeting at City
Hall, located at 130 Avram Avenue. Any writings or documents subject to disclosure that are provided to
all, or a majority of all, of the members of the Board regarding any item on this agenda after the agenda
has been distributed will also be made available for inspection at City Hall during regular business hours.
ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices
upon entering the Rohnert Park Council Chamber. Use of these devices causes electrical interference with
the sound recording and TV broadcast systems.
Regular Meeting Agenda April 10,2013
Oversight Board for the Successor Agency City of Rohnert Park Page 2 of 2
2:00 PM
I. CALL TO ORDER/ROLL CALL(Zane_Mackenzie_Babonis_Calvert_Jenkins_
Jolley_Thompson )
2. PUBLIC COMMENTS
Persons wishing to address the Board on any Consent Calendar item or on Successor Agency
City of Rohnert Park business not listed on the Agenda may do so at this time. Each speaker will
be allotted 3 minutes. Those wishing to address the Oversight Board on any report item listed on
the Agenda should submit a "Speaker Card" to the Clerk before announcement of agenda item.
3. APPROVAL OF MINUTES
A. Special meeting of Oversight Board for Successor Agency City of Rohnert Park held on
February 27, 2013
4. MEETING ITEMS
A. Election of Officers
1. Staff Report
2. Nomination and Election of Officers
3. Resolution for adoption: Resolution No. OSB 2013-03 A Resolution of the Oversight
Board to the Successor Agency City Of Rohnert Park Affirming Selection of Officers
a. Board Motion/Discussion/Vote
B. Consideration of Extension of Legal Services Agreement with Betsy Strauss
1. Staff Report
a. Board Discussion/Direction
C. Department of Finance Review of the Due Diligence All Other Funds of the Successor
Agency
1. Staff Report
5. NEW MATTERS FOR FUTURE CONSIDERATION
6. PUBLIC COMMENT ON NON-AGENDA ITEMS
Members of the public may address the Oversight Board on matters that are within the Oversight
Board's jurisdiction and not on today's calendar. Each speaker shall have up to three minutes to
make pertinent public comments unless the Oversight Board adopts a shorter period. It is strongly
recommended that members of the public who wish to address the Oversight Board should fill
out a"Speaker Card" provided by the Clerk,and submit the completed card to the Clerk.
7. ADJOURNMENT
DISABLED ACCOMMODATION
If you have a disability which requires an interpreter or other person to assist you while attending this Board
meeting, please contact the Clerk of the Board at(707)588-2205 at least 72 hours prior to the meeting to ensure
arrangements fir accommodation by the City. Please notify the Clerk's Office as soon as possible if you have a
visual impairment requiring meeting materials to be produced in another format(Braille,audio-tape,etc.)
vikNe Rr p4,4.
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MINUTES OF THE SPECIAL MEETING
OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY CITY OF ROHNERT PARK
Wednesday, February 27,2013
Rohnert Park City Hall,Council i bers
130 Avrarn Avenue, Rohnert Par fornia
1. CALL TO ORDER
The special meeting of the Oversight Board to the Suc - gency , •f Rohnert Park was called to
order by Chair Shirlee Zane at 2:04 PM on Februa 13 in the Co hambers,Rohnert Park City
Hall, 130 Avram Avenue,Rohnert Park,Californ'
Present: Shirlee Zane,Chair Absen : Mike • •son, Board Member
Jake Mackenzie, Vice Chair
Linda Babonis,Board Member
Denise Calvert,Board Member
Darrin Jenkins,Board Member
Kate Jolley,Board Member --
Staff present: Clerk oft _ _ •ie Tacata ' ance ,, athy Orme; Oversight Board Counsel
Betsy Strauss(via tel
2. PUBLIC COMMENTS
There ents
3. APPR "`.' OF MIN I .
Chat ' -,+a announced t i e .
ACTION: d/seconded •+ni . enzie)and carried 6-0-1 to approve minutes of the meeting
of January 10, .
4. MEETING ITEMS
A. Approving the ;)4'S 13-14A of the Successor Agency to the former Community
Development Commission of the City of Rohnert Park
Chair Zane announced the item. Finance Director Cathy Orme gave the staff report.
There was general discussion among the Board members, Oversight Board Counsel and Successor
Agency staff about specific line items in the ROPS.
ACTION: Moved/seconded(Mackenzie/Jolley)and carried 6-0-1 to approve Resolution No. OSB
2013-02: A Resolution of the Oversight Board for the Successor Agency City of Rohnert Park
Approving the Recognized Obligation Payment Schedule for July 1 — December 31, 2013 ("ROPS
13-14A"), Pursuant to Section 34177 of the California Health and Safety Code.
Oversight Board— Minutes of Special Meeting(Page 2 of 2) February 27,2013
Successor Agency City of Rohnert Pork
5. NEW MATTERS FOR FUTURE CONSIDERATION
There were no new matters.
6. PUBLIC COMMENT ON NON-AGENDA ITEMS
There were no comments from the public.
7. ADJOURNMENT
ACTION: The Board members concurred to adjourn the meeting at 2:21 PM.
Eydie Tacata, Clerk of the Board Shirlee Zane, Chair
Successor Agency City of Rohnert Park Oversight Board for the Successor Agency of
Rohnert Park
QONNf RI PAR*
4br`r1 ITEM NO. 4A
{ Mission Statement
'" - .: 6' "We Care for Our Residents by Working Together to Build a
t \cAtuomm�
Better Community for Today and Tomorrow."
CITY OF ROHNERT PARK
OVERSIGHT BOARD AGENDA
Meeting Date: April 10, 2013
Submitted By: Gabriel A. Gonzalez, City Manager
Prepared By: Gabriel A. Gonzalez,City Manager
Agenda Title: Election of Officers
RECOMMENDED ACTIONS:
(1) Elect one member of the Oversight Board to serve as Chair of the Oversight Board of the
Successor Agency City of Rohnert Park("Board")for a one-year term effective the next
regularly scheduled or special meeting;
(2) Elect one member to serve as Vice Chair of the Board for a one-year term; and
(3) Consider and adopt attached Resolution affirming the selection of Board officers.
BACKGROUND:
On April 11,2012,the Board elected Shirlee Zane as Chair and Jake Mackenzie as Vice Chair of the
Board. On June 22, 2012, the Board approved Resolution No, OSB 2012-07.•Adopting Bylaws for
the Oversight Board for the Successor Agency City of Rohnert Park and Naming Officers.
Article 11, Section 5 of the Bylaws of the Oversight Board state:
"The Chair and Vice Chair shall be elected from among the members of the Board at the first
regular meeting of the Board. Thereafter, the Chair and Vice Chair shall be elected from
among the members of the Board at each annual meeting. Each officer shall hold office until
the next annual meeting of the Board following his/her election and until his/her successor is
elected and in office. Any such officer shall not be prohibited from succeeding himself or
herself but no person shall be elected as an officer for more than two consecutive terms."
This meeting of April 10,2013 is designated as the regular annual meeting of the Board at which
election of officers is to take place.
DISCUSSION:
A majority of the total membership of the Board constitutes a quorum (four members)for the
transaction of business. Four affirmative votes are required to approve any action taken by the Board.
It is recommended that the Chair open and close nominations to the Board for the election of Chair.
Votes will be cast for the nominee(s) by roll call vote. The nominee receiving at least four
affirmative votes will be elected as Chair. The same process would be facilitated by the Chair for the
election of a Vice Chair.
City Manager Approval Date: 4/8/13
Attachments: Resolution
RESOLUTION NO. OSB 2013-03
A RESOLUTION OF THE OVERSIGHT BOAR[) FOR THE
SUCCESSOR AGENCY CITY OF ROHNER'I' PARK
AFFIRMING SELECTION OF OFFICERS
WHEREAS, the Oversight Board for the Successor Agency City of Rohnert Park (the
"Board") organized itself pursuant to Chapter 4 (commencing with Section 34179) of Part 1.85
of Division 24 of the Health and Safety Code;
WHEREAS, at the Board's initial meeting on April 11, 2012, the Board members were
sworn in as public officials, and the Chair and Vice Chair were selected by a majority vote of the
Board;
WHEREAS, on June 22, 2012, the Board adopted Bylaws for the Oversight Board for
the Successor Agency City of Rohnert Park, which established that at each annual meeting, the
Chair and Vice Chair shall be elected from among the members of the Board;
WHEREAS, an annual meeting of the Oversight Board was held on April 10, 2013, and
the Chair and Vice Chair of the Oversight Board were elected.
NOW, THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR
AGENCY CITY OF ROHNERT PARK DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The officers of the Board, elected in accordance with the Bylaws, are as
follows:
Chair:
Vice Chair:
Section 2. This Resolution shall be effective the next regularly scheduled or special
meeting.
DULY AND REGULARLY ADOPTED this 10th day of April, 2013.
OVERSIGHT BOARD FOR THE SUCCESSOR
AGENCY CITY OF ROHNERT PARK
Chair Shirlee Zane
ATTEST:
Eydie Tacata, Clerk of the Board
a0„Nett p,t4. ITEM NO.4B
%
1 Mission Statement
60 "We Care for Our Residents by Working Together to Build a
Better Community for Today and Tomorrow."
c.li. ,u*"'
CITY OF ROHNERT PARK
OVERSIGHT BOARD AGENDA
Meeting Date: April 10, 2013
Submitted By: Gabriel A. Gonzalez, City Manager
Prepared By: Gabriel A. Gonzalez, City Manager
Agenda Title: Consideration of Extension of Legal Services Agreement with
Betsy Strauss
RECOMMENDED ACTION:
Discuss and provide direction to staff to request that the City of Rohnert Park, acting in its
capacity as the Successor Agency,approve First Amendment to the Legal Services Agreement
with Betsy Strauss for the Successor Agency's Oversight Board ("First Amendment").
BACKGROUND:
At the April 11, 2012 meeting, staff recommended that the Board consider retaining separate
legal counsel for the Board independent of the City. The Board directed staff to provide options
for outside legal counsel. On May 7, 2012, staff returned to the Board with a recommendation to
consider retaining Betsy Strauss as the Board's legal counsel. The Board directed staff to request
that the City of Rohnert Park, in its capacity as the Successor Agency,consider and approve the
Legal Services Agreement with Betsy Strauss("Agreement")to provide services to the
Oversight Board. (See attached Agreement.) On July 24,2012, the Rohnert Park City Council
approved Resolution No. 2012-87 authorizing and approving the Agreement.
DISCUSSION:
The Agreement between the City of Rohnert Park in its capacity as the Successor Agency and
Betsy Strauss is for legal services to the Oversight Board through June 30, 2013. If the Board
desires to retain Ms. Strauss' legal services beyond June 30, 2013, the term of the Agreement
should be extended with an amendment.
Also, the Agreement is for legal services to be provided on an as-needed basis up to a not-to-
exceed amount of$25,000. Board staff is recommending that the Agreement's not-to-exceed
amount be lowered to $10,000. About $1,200 of the Agreement has been invoiced and paid to
date for Ms. Strauss' legal services through October 2012. It is anticipated that the proposed
$10,000 limit will still be sufficient to cover the most recent unbilled work, as well as future
services to the Board for the remainder of the redevelopment unwinding process. Lowering the
not-to-exceed amount also will result in a smaller encumbrance of general fund monies.
A proposed First Amendment to the Agreement to effect these changes, once approved by the
City of Rohnert Park. is attached for the Board's consideration.
ITEM NO. 4B
The Board itself does not have contracting authority, but it may direct the City Manager of the
Successor Agency City of Rohnert Park to request that the City of Rohnert Park,acting in its
capacity as Successor Agency, consider and authorize First Amendment to the Agreement.
FISCAL IMPACT/FUNDING SOURCE:
The cost of outside legal counsel for the Oversight Board is apportioned to the Successor
Agency's Administrative Budget. It is not shown as a separate line item on the Agency's
Recognized Obligation Payment Schedule. If the cost of outside counsel exceeds the Successor
Agency's Administrative Budget, which is$250,000 per fiscal year, the City's general fund
would be impacted in that it would necessarily absorb the excess cost not reimbursed as part of
the Administrative Allowance.
City Manager Approval Date: 4/8/13
Attachments: (I) Legal Services Agreement between City of Rohnert Park, in its capacity as
Successor Agency for the Rohnert Park Community Redevelopment Agency
("Successor Agency")and Betsy Strauss ("Attorney")
(2) First Amendment to the Legal Services Agreement with Betsy Strauss for
the Successor Agency's Oversight Board
LEGAL SERVICES AGREEMENT
This Agreement dated as of July , 24 ,2012, is made by and between
the City of Rohnert Park, in its capacity as Successor Agency for the Community
Development Commission of the City of Rohnert Park ("Successor Agency")and Betsy
Strauss("Attorney"). This Agreement is required by Business and Professions Code
Section 6148 and is intended to fulfill its requirements.
R EC ITA LS
WHEREAS, Attorney specializes in public agency law and has significant
experience and recognized expertise in that area,and;
WHEREAS,Successor Agency has determined that Attorney's assistance is
needed in connection with providing legal services and advice on an as-needed basis to
the Successor Agency's Oversight Board; •
NOW THEREFORE, in consideration of the mutual covenants contained Herein,
the parties agree as follows:
AGREEMENT
1. Services. Attorney will provide advisory and representation services to
Successor Agency's Oversight Board upon request.
2. Compensation. Compensation to Attorney for services shall be at the rate of
$225 per hour. Total compensation to Attorney under this Agreement shall not exceed
Twenty Five Thousand Dollars($25,000).
3. Term. The term of this Agreement shall commence upon the Effective Date
and shall terminate on June 30,2013.
4. Standard of Care. Successor Agency has relied on the professional ability,
professional experience,and training of Attorney as a material inducement to enter into
this Agreement. Attorney warrants that all work will be performed in accordance with
generally accepted and applicable professional practices and standards as well as the
requirements of applicable federal,state and local laws, it being understood that
acceptance by Agency of work performed by Attorney shall not operate as or he
interpreted to be a waiver or release.
5. Non-Reimbursable Services. Attorney shall not be reimbursed for any of the
following expenses:
a. Travel expenses,except to the extent approved in accordance with
Section 6 below.
Page 1
OAK 01844-4211').1607 v2
b. Messenger or express mail charges.
c. Normal overhead functions such as word processing or typing time,
scheduling of depositions,ordering records,calendaring functions,
filing, indexing, proofreading or copying time,or any other procedures
that are of a secretarial nature.
d. Meals,overtime,office supplies, or attorney time for preparation of
bills or audit responses.
e. Expenses for experts or consultants that have been retained without the
prior written approval of the Oversight Board.
1. Photocopying charges.
g. Office supplies, local telephone charges, per-page fax charges,
conference call line charges, routine mail,etc.
h. Intra-office conferencing time of more than one attorney for routine
matters, unless such conference involves expert opinion.
i. Replacement attorney learning time or other ramp-up learning costs.
j. Travel time.
k. Charges/fees for use of computer research programs (e.g. Lexis Nexis,
WestI,aw,etc.).
6. Direction and Extraordinary Expenses. All direction and control of
Attorney's work will be by the Oversight Board. Attorney shall seek pre-approval from
the Oversight Board for all extraordinary expenses before the same is incurred by
Attorney. By way of example,extraordinary expenses shall include expenses for
preparing complex motions, undertaking significant legal research or substantial drafting,
retaining experts and consultants,and out-of-town travel.
7. Termination, This Agreement may be terminated by Successor Agency at any
time, subject to equitable proportional payments due to Attorney. All files, written
material,and documents will be transferred to the Successor Agency upon such
termination. Attorney will be available to consult with Successor Agency or,should one
be retained, with the Successor's Agency's new attorney with respect to facts and
circumstances of any matters previously worked on by Attorney for a reasonable period
of time following such termination.
8. Withdrawal. Attorney may withdraw as permitted under the Rules of
Professional Conduct of the State 13ar of California.
Page 2
OAK 04844.42g9.46O?v2
9. Status of Attorney. The parties intend that Attorney, in performing the
services under this Agreement, shall be an independent contractor and shall control the
work and the manner in which it is performed. Attorney shall acquire no rights or status
in the service of Successor Agency. Attorney is not to be considered an agent or
employee of Successor Agency and is not entitled to participate in any pension plan,
insurance, bonus,or similar benefits Successor Agency provides its employees. In the
event Successor Agency exercises its right to terminate this Agreement pursuant to the
terms herein, Attorney expressly agrees that she shall have no recourse or right of appeal
under rules, regulations, ordinances, or laws applicable to employees.
10.Modification_ If,during the term of this Agreement, it becomes necessary to
amend or add to its terms,conditions, scope or requirements,such amendment or addition
shall only be made alter mutual agreement of Attorney and Successor Agency and by
way of execution of a written modification to this Agreement.
11. Insurance. With respect to performance of work under this Agreement,
Attorney shall maintain Commercial General Liability Insurance on a standard
occurrence form, no less broad than ISO form CBG 00 01 with minimum limits of
$1,000,000 per Occurrence; $2,000,000 General Aggregate and Automobile Liability
Insurance with minimum limit of$300,000 Combined Single Limit Per Accident; or
Bodily Injury; $100,000 per personl$300,000 per accident and Property Damage:
$50,000 per accident.
12. Indemnity. Attorney agrees to accept responsibility for loss or damage to any
person or entity, and to defend, indemnify, hold harmless, and release Successor Agency,
its officers, agents,and employees, from and against any and all actions,claims,
damages, liabilities,or expenses that may be asserted by any person or entity, including
Attorney, arising out of or in connection with the negligent performance or willful
misconduct of Attorney hereunder, whether or not there is concurrent negligence on the
part of Successor Agency, but excluding liability due to the sole or active negligence or
due to the willful misconduct of Successor Agency_ This indemnification obligation is
not limited in any way by any limitation on the amount or type of damages or
compensation payable to or iirr Attorney or its agents under workers' compensation acts,
disability benefits acts, or other employee benefit acts. In addition, Attorney shall be
liable to Successor Agency for any loss or damage to Successor Agency property arising
from or in connection with Attorney's negligent performance or willful misconduct
hereunder.
13. Rules of Professional Conduct. Nothing contained herein shall he construed
to relieve Attorney of her obligations under the Rules of Professional Conduct.
14. Merger, This Agreement contains the entire agreement of the parties. No
other agreement, statement or promise made on or before the effective elate of this
agreement will be binding on the parties.
Page 3
OAK K 114:414•.219•)•4607 v2
•
15. Taxes. Attorney agrees to file federal and state lax returns and pay all
applicable taxes on amounts paid pursuant to this Agreement and shall be solely liable
and responsible to pay such taxes and other obligations, including, but not limited to,
slate and federal income and FICA taxes. Attorney agrees to indemnify and hold
Successor Agency harmless from any liability which it may incur to the United States or
to the State of California as a consequence of Attorney's failure to pay, when due,all
such taxes and obligations. If Successor Agency is audited for compliance regarding any
withholding or other applicable taxes, Attorney agrees to furnish the Successor Agency
with proof of payment of taxes on these earnings.
I6. Conflict of Interest. Attorney covenants that she presently has no interest and
shall not acquire any interest,direct or indirect, which would conflict in any manner or
degree with the performance of the services hereunder. Where the Successor Agency
deems that there is an actual or potential conflict of interest in Attorney representing
another party in a matter, the Successor Agency must waive any such actual or potential
conflict before Attorney may represent such other party.
17. Nondiscrimination. Attorney shall comply with all applicable federal,state,
and local laws, rules and regulations in regard to nondiscrimination in employment
because of race, color, ancestry, national origin,religion, sex, marital status,age,medical
condition, pregnancy,disability, sexual orientation, or other prohibited basis, including
without limitation the Successor Agency's Non-Discrimination Policy. All
nondiscrimination rules or regulations required by law to be included in this Agreement
are incorporated by this reference.
18. Assignment and Delegation. Neither party hereto shall assign,delegate,
sublet,or transfer any interest in or duty under this Agreement without the prior written
consent of the other, and no such transfer shall be of any force or effect whatsoever
unless and until the other party shall have so consented. •
19. Method and Place of Giving Notice, Submitting Bills and Making Payments.
All notices, bills,and payments shall be made in writing and may be given by personal
delivery or by mail. Notices, bills, and payments sent by mail shall be addressed as
follows:
Successor Agency: City of Rohnert Park
130 Avram Avenue
Rohnert Park,California 94928
Attention: City Manager
Attorney: Betsy Strauss
1595 King Avenue
Napa,California 94559
And when so addressed,shall be deemed given upon deposit in the United States mail,
postage prepaid. In all other instances, notices, bills, and payments shall be deemed
given at the time of actual delivery. Changes may be made in the names and addresses of
Page 4
OAK n4844-4289 4d4)7 v2
the person to whom notices, bills,and payments arc to be given by giving notice pursuant
to this paragraph.
20.No Waiver of Breach. The waiver by the Successor Agency of any breach of
any term or promise contained in this Agreement shall not be deemed to be a waiver of
such term or promise or any subsequent breach of the same or any other term or promise
contained in this Agreement.
21. Applicable Law and Forum. This Agreement shall be construed and
interpreted according to California Law,and any action or proceeding to enforce this
Contract or for the breach thereof shall be brought or tried in the County of Sonoma.
22. Counterparts. This Agreement may be executed in several counterparts and
all counterparts so executed shall constitute one agreement that shall be binding on all of
the parties, notwithstanding that all of the parties are not signatory to the original or same
counterpart.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of
the Effective Date.
CITY OF ROHNER1'PARK,as Successor ATTORNEY
Agency to the former Community
Development Commission of the City of
Rohnert Park
By: By:
City Manager BetsyStra ss
Date:
Date: 7/2 7/in--
�/7 r�2
APPP VED AS •OR : Date:
Kot+Nekr paRk.
City Attorney VI a
ATTEST: C+LrFoaN+P
By: 1 -o
ty 'lerk
Page 5
OAK W4tO 4-•I2sN-i6O7 v2
FIRST AMENDMENT TO THE LEGAL SERVICES AGREEMENT WITH
BETSY STRAUSS FOR THE SUCCESSOR AGENCY'S OVERSIGHT BOARD
This First Amendment to the Legal Services Agreement between the City of Rohnert Park
("City"), in its capacity as Successor Agency for the Community Development Commission of
the City of Rohnert Park, and Betsy Strauss("Attorney") is entered into as of the
day of , 2013 ,("Effective Date"), by and between City and
Attorney.
RECITALS
A. City and Attorney are parties to that certain Agreement entitled "Legal Services Agreement"
dated July 24, 2012, and authorized through Resolution No. 2012-87 approved by the City
Council on July 24, 2012, for the amount of$25,000, and attached hereto as Exhibit A.
B. City and Attorney now desire to enter into this First Amendment to amend Sections 2 and 3
of the Agreement as described below.
AGREEMENT
NOW,THEREFORE, in consideration of the following mutual promises, the parties hereby
amend the Agreement as follows:
1. Compensation. Total compensation to Attorney under this Agreement shall not exceed Ten
Thousand Dollars ($1 0,000).
2. Term. In addition to the services provided under the Agreement, the term of the Agreement
shall be extended to June 30, 2014.
3. Agreement in Effect. Except as amended by this First Amendment, the Agreement shall
remain in full force and effect.
4. Counterpart Signatures. This First Amendment may be signed in multiple counterparts
which,when signed by all parties, shall constitute a binding agreement.
IN WITNESS THEREOF, the parties have executed this First Amendment as of the date first
written above.
CITY OF ROHNI?RT PARK: ATTORNEY:
By: / By:
Gabe Gonzalez,City Manager (Date) Name:Betsy Strauss (Date)
Per Purchasing Ordinance Title:Attorney
ATTEST: By: /
Name: (Date)
Title:
City Clerk
APPROVED AS TO FORM:
City Attorney
1
Sisucetisor Aeeno•b11344-10 OSR Rcrulx\1ertmg LegalSIcsAgmSlrass
�`11N' RRt
Mission Statement ITEM NO. 4C
"We care for Our Residents by Working Together to Build a
Better Community for Today and Tomorrow."
CITY OF ROHNERT PARK
OVERSIGHT BOARD AGENDA
Meeting Date: April 10,2013
Submitted By: Gabriel A. Gonzalez, City Manager
Prepared By: Gabriel A. Gonzalez, City Manager
Agenda Title: Department of Finance Review of the Due Diligence All Other Funds of
the Successor Agency
RECOMMENDED ACTION:
Consider staff report on the Department of Finance Review of the Due Diligence Review All Other
Funds and file.
BACKGROUND:
Health and Safety Code §34179-5 required the Successor Agency to conduct a due diligence review
of All Other Funds of the Successor Agency(excluding the Low and Moderate Income Housing
Fund)to determine the unobligated balances available for transfer to taxing entities. The Successor
Agency engaged VTD,a licensed accountant firm approved by the County Auditor-Controller,to
perform Agreed-Upon Procedures and produce the DDR All Other Funds report.
A public session was convened to receive comments on the DDR All Other Funds report at a Special
Meeting of the Board on January 3,2013. There were no public comments. On January 10,2013,the
Board approved the DDR All Other Funds of the Successor Agency.The DDR All Other Funds was
transmitted to the County Auditor-Controller, the State Controller,and State Department of Finance
(hereinafter referred to as"DOF")by January 15, 2013. The DOF had until April 15', 2013 to
complete the review and submit comments on the DDR.
DISCUSSION:
On April 1",2013 DOF submitted a letter outlining their determination of the Successor Agency's
DDR All Other Funds. They found that assets transferred of$11,505,035 were not supported by an
enforceable obligation.These assets contain both Housing and Redevelopment assets and are net
accumulation depreciation. Out of the$11 million, $5.35 million are Redevelopment net assets and
were included in the"Capital Asset" of the DDR.The other net assets were included in the DDR of
the Low and Moderate Income Housing Fund. The Successor Agency has submitted a letter of
clarification to DOF on this matter.
DOF also determined that assets of$273,485were not enforceable obligations.These items are the
General Fund Loan and Land Lease which were disallowed on Recognized Obligation Payments
Schedule(ROPS)I.
City Manager Approval Date: 4/8/13
Attachments: Department of Finance letter dated April I. 2013 of Due Diligence Review of All
Other Funds
Z
Pr
ys DEPARTMENT OF EDMUND G. FIR OWN JR, - GMVERNOR
Oql/►oaN�r 1- I N A N C E 91 5 l_ STREET ■ 5ACRAMENTO CA ■ 95R 1 4-3706 ■ www.oCF.CA.00V
April 1, 2013
Ms. Cathy Orme, Finance Director
City of Rohnert Park
130 Avram Avenue
Rohnert Park, CA 94928
Dear Ms. Orme:
Subject: Otter Funds and Accounts Due Diligence Review
The City of Rohnert Park successor agency (Agency)submitted an oversight board approved
Other Funds and Accounts (OFA) Due Diligence Review (DDR) to the California Department of
Finance (Finance)on January 17, 2013. The purpose of the review was to determine the
amount of cash and cash equivalents available for distribution to the affected taxing entities.
Since the Agency did not meet the January 15, 2013 submittal deadline pursuant to HSC
section 34179.6 (c), Finance is not bound to completing its review and making a determination
by the April 1, 2013 deadline pursuant to HSC section 34179.6 (d). However, Finance has
completed its review of your DDR, which may have included obtaining clarification for various
items.
HSC section 34179,6 (d) authorizes Finance to adjust the DDR's stated balance of OFA
available for distribution to the taxing entities. Based on our review of your DDR, the following
adjustments were made:
• Assets transferred to the City of Rohnert Park (City) during the period January 1, 2011
through June 30, 2012 totaling $11,778,520 are not allowable. HSC section 34179.5 (c)
(2) only allows asset transfers within this period that are required by enforceable
obligation or meet the definition of governmental use. Specifically:
o Assets transferred in the amount of$11,505,035. The former redevelopment
agency (RDA) transferred capital assets in the amount of$11,505,035 to the City
on March 8, 2011. The Agency was unable to provide documentation to
demonstrate that the transfer was for an enforceable obligation. Therefore, asset
balance stated in the OFA DDR should be increased by$11,505,035_ Because
these assets are considered as non-liquid assets, this adjustment does not affect
the OFA funds available for distribution to the taxing entities.
The non-liquid assets transferred to the City are subject to the California State
Controller's Office review of asset transfers. To the extent these assets that
transferred are not for a government purpose or pursuant to an enforceable
obligation, these assets should be returned to the Agency and disposed of in a
Ms. Cathy Orme
April 1, 2013
Page 2
manner consistent to the Agency's Long Range Property Management Plan
pursuant to HSC section 34191.5.
o Assets transferred totaling $273,485. The former RDA transferred $180,110 on
June 15, 2011 and $93,375 on December 30, 2011 for loan payments to the
City's General Fund. HSC 34171 (d)(2)states that agreements, contracts or
arrangements between the city that created the RDA and the former RDA are not
enforceable obligations, unless entered into within two years of the date of
creation of the redevelopment agency. Therefore, these transfers are deemed to
be not enforceable and the OFA balance available for distribution to the taxing
entities will be adjusted by $273,485.
If you disagree with Finance's adjusted amount of OFA balances available for distribution to the
taxing entities, you may request a Meet and Confer within five business days of the date of this
letter. The Meet and Confer process and guidelines are available at Finance's website below:
http://www.dof.ca.gov/redeveloement/meet and confer!
Even after the adjustments, the Agency's OFA balance available for distribution to the affected
taxing entities continues to be zero (see table below).
OFA Balances Available For DIstribution To Taxing Entities
Available Balance per DDR: $ (1,540,188)
Finance Adjustments
Add:
Disallowed transfers: $ 273,485
Total OFAavailable to be distributed: $ (1,266,703)
Pursuant to HSC section 34167.5 and 34178.8, the California State Controller's Office
(Controller) has the authority to claw back assets that were inappropriately transferred to the
city, county, or any other public agency. Determinations outlined in this letter do not in any way
eliminate the Controller's authority.
Please direct inquiries to Wendy Griffe, Supervisoror.Qerk Symons, Lead Analyst at
(916)445-1546.
Sincerely,
may, STEVE SZALAY
Local Government Consultant
cc: Ms. Linda Babonis, Economic Manager, City of Rohnert Park
Mr. Erick Roeser, Property Tax Manager, Sonoma County
California State Controller's Office