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HomeMy WebLinkAbout12.13.2023@631 Special SuccesorWednesday, December 13, 2023 6:31 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Library Parks & Recreation Building, Council Chambers 901 Civic Campus Way, South San Francisco, CA Special Successor Agency to the Redevelopment Agency JAMES COLEMAN, Chair (District 4) EDDIE FLORES, Vice Chair (District 5) MARK ADDIEGO, Boardmember (District 1) MARK NAGALES, Boardlmember (District 2) BUENAFLOR NICOLAS, Boardmember (District 3) ROSA GOVEA ACOSTA, Board Clerk FRANK RISSO, City Treasurer SHARON RANALS, City Manager SKY WOODRUFF, City Attorney Special Meeting Agenda 1 December 13, 2023Special Successor Agency to the Redevelopment Agency Special Meeting Agenda How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 4:31 p.m. on the meeting date. Use the eComment portal by clicking on the following link : https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 24-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 24-hours before the meeting. Notification in advance of the meeting will enable the City of South San Francisco to make reasonable arrangements to ensure accessibility to the meeting. Page 2 City of South San Francisco Printed on 12/11/2023 2 December 13, 2023Special Successor Agency to the Redevelopment Agency Special Meeting Agenda CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS: Comments are limited to items on the Special Meeting Agenda. ADMINISTRATIVE BUSINESS Report regarding a resolution of the successor agency to the redevelopment agency of the City of South San Francisco, reviewing and approving a recognized obligation payment schedule and administrative budget for fiscal year 2024-25 (Karen Chang, Director of Finance) 1. Resolution of the successor agency to the redevelopment agency of the City of South San Francisco, reviewing and approving the Recognized Obligation Payment Schedule and administrative budget for the period July 1, 2024, through June 30, 2025, pursuant to Health and Safety Code Sections 34177(J) AND 34177(L) 1a. ADJOURNMENT Page 3 City of South San Francisco Printed on 12/11/2023 3 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-1053 Agenda Date:12/13/2023 Version:1 Item #:1. Report regarding a resolution of the successor agency to the redevelopment agency of the City of South San Francisco, reviewing and approving a recognized obligation payment schedule and administrative budget for fiscal year 2024-25 (Karen Chang, Director of Finance) RECOMMENDATION It is recommended that the Successor Agency to the Redevelopment Agency of the City of South San Francisco (“Successor Agency”)adopt a resolution approving the Recognized Obligation Payment Schedule and Administrative Budget for Fiscal Year 2024-25 as required by State law. BACKGROUND/DISCUSSION The State Legislature dissolved all California redevelopment agencies in 2012.The Successor Agency is responsible for winding down the affairs of the former Redevelopment Agency of the City of South San Francisco (“RDA”).This includes completing projects that were under contract with the RDA prior to dissolution. State law requires successor agencies to request funding for obligations on an annual basis.The Recognized Obligation Payment Schedule 24-25 (“ROPS 24-25”)requests funding for Fiscal Year 2024-25.The Successor Agency must adopt an Administrative Budget for the same time period. Enforceable obligations are funded by property tax revenues from former redevelopment project areas and other sources,such as repayments of loans issued by the RDA.Funds that are not committed on the ROPS are distributed to taxing agencies that serve former redevelopment project areas such as the City,County,schools, and special districts. The ROPS must be approved by the San Mateo Countywide Oversight Board (“Oversight Board”)and California Department of Finance (“DOF”).The Oversight Board will consider the ROPS 24-25 on January 8, 2024.The ROPS must be submitted to DOF by February 1,2024,who will make a determination by April 15, 2024.If the ROPS is not submitted to DOF on time,the City and Successor Agency could be subject to a civil penalty of $10,000 per day. DISCUSSION The ROPS 24-25 requests $544,519 to fund the following obligations: ·Items 12-14 -Oyster Point Project DDA -The Successor Agency administers a Disposition and Development Agreement (“DDA”)dated March 23,2011 between the RDA,City,and Oyster Point Ventures,LLC,which was ultimately assigned and assumed by the current developer KR Oyster Point / KR-TRS (“Kilroy”or “developer”).The RDA negotiated the DDA to redevelop a former landfill into a life science workplace known as Oyster Point.The Successor Agency is responsible for certain costs related to environmental remediation and construction. ROPS Item 12 relating to Oyster Point development costs requests no funding this period.The City of South San Francisco Printed on 12/8/2023Page 1 of 3 powered by Legistar™4 File #:23-1053 Agenda Date:12/13/2023 Version:1 Item #:1. ROPS Item 12 relating to Oyster Point development costs requests no funding this period.The Successor Agency anticipates that funding received in prior years will cover remaining DDA obligations which have been scaled back based on current cost estimates. The project is currently implementing Oyster Point Phase 2C landscape improvements.The improvements are expected to proceed in December 2023 with completion May 2024.Work includes resurfacing the parking lot and bay trail,landscaping in the BCDC area along the bay trail,and landscape tune up at the parking area.This includes parking lot,driveway,and pedestrian paving improvements with curb cuts with truncated domes and striping;landscape planting and irrigation; lighting; picnic tables benches and accessories; and dedicated dog park construction. Future work includes installation of a new pump station for the Oyster Point Marina area.This is expected to take place between August 2024 and July 2025. The Successor Agency is responsible for funding this work under Sections 3.4.1 and Exhibit 3.4.1 of the DDA.While the Successor Agency anticipates that prior ROPS funding will cover remaining obligations,it is possible that additional funding will be necessary in the future if there are unforeseen circumstances that increase costs.If this occurs,the Successor Agency will request funding on future ROPS. ROPS Item 13 relates to the Successor Agency’s indemnification obligation under Section 5.2 of the DDA due to potential exposure arising from former solid waste landfill.No funds are requested this period. ROPS Item 14 requests $177,307 for project-related staff,consultant,and legal costs to implement the Oyster Point project.This includes reimbursing the City for time the Public Works Director,City Manager,and other staff spend administering the project as detailed in Exhibit A.The costs are estimated based on average hours per month. Taxing Agency Benefit from Oyster Point The Successor Agency’s investment in the Oyster Point project will result in a significant increase in annual property tax revenues by adding over $2 billion in estimated new development value.On the Fiscal Year 2023-24 property tax bills,the properties had a secured value of over $1 billion,resulting in over $10.4 million in annual property tax revenue,compared to $840,000 in annual property tax revenues in 2011)Values are expected to increase as the project continues to be developed.Assuming 2%growth in annual assessed values,taxing agencies will benefit from nearly $856 million in estimated property tax revenues between 2024 and 2050. ·Item 48 -Administrative Cost Allowance -The Successor Agency requests $171,677 for Fiscal Year 2024-25 administrative expenses, which is within the threshold set forth under Health and Safety Code. ·Item 73 -San Mateo Community College District Litigation Costs -The Successor Agency requests $195,535 for legal services related to litigation with the San Mateo Community College District (“District”).In 2020,the District filed a claim for additional funds under a pass-through agreement entitled an Agreement to Alleviate Financial Burden or Detriment from the South San Francisco Downtown-Central Redevelopment Project (the “Agreement”)Following a lengthy negotiation,the District and Successor Agency entered into arbitration,pursuant to the terms of the Agreement.The Arbitrator found that the District is not entitled to the funds that it claimed. The Successor Agency incurred $218,816 in legal fees and costs related to the arbitration.Of this City of South San Francisco Printed on 12/8/2023Page 2 of 3 powered by Legistar™5 File #:23-1053 Agenda Date:12/13/2023 Version:1 Item #:1. The Successor Agency incurred $218,816 in legal fees and costs related to the arbitration.Of this amount,$23,281 was reimbursed to the Successor Agency by the District.The remaining $195,535 in legal fees is requested on the ROPS as an enforceable obligation under Health and Safety Code Section 34171(d)(1)(F)(ii),which reads in part “contracts or agreements necessary for the administration or operation of the successor agency,…,including …agreements concerning litigation expenses related to assets or obligations…”. ·Other Enforceable Obligations -ROPS Items 16 and 17 are related to an agreement with the San Mateo County Harbor District for dock improvements.There are no anticipated Successor Agency costs in Fiscal Year 2024-25.These obligations remain listed on the ROPS in case there are eligible costs in the future. Administrative Budget Health and Safety Code Section 34177(j)requires the Successor Agency to prepare an administrative budget and submit it to the Oversight Board for approval.An Administrative Budget for Fiscal Year 2024-25 is attached as Exhibit B. Staff has prepared an administrative budget of $171,677 for Fiscal Year 2024-25 to cover professional services (including preparation of the ROPS and auditor fees)and staff costs and overhead required to administer obligations and prepare legally mandated reports.The requested administrative cost allowance is within the $250,000 threshold set forth under Health and Safety Code section 34171. CONCLUSION Adoption of the proposed ROPS 24-25 and Administrative Budget is necessary to obtain funding for Fiscal Year 2024-25 obligations and are required by State law. Attachments: 1.Exhibit A - ROPS 24-25 Item 14 Oyster Point Soft Cost Estimate 2.Exhibit B - Administrative Budget for FY 24-25 3.Exhibit C - ROPS 24-25 4.Exhibit D - PowerPoint Presentation City of South San Francisco Printed on 12/8/2023Page 3 of 3 powered by Legistar™6 ROPS Period Obligations Period Item Staff Tasks Hourly Rate (Burdened)# of Hours per month Requested Successor Agency Engineering Management Staff costs Philip Vitale, Deputy CIP Director Project and contract management specific to Oyster Point DDA project (through Dec 2024)171.06$ 10 10,264$ Successor Agency Engineering Management Staff costs Eunejune Kim, Public Works Director Project and contract management specific to Oyster Point DDA project 243.51$ 10 29,221$ Successor Agency Engineering Management Staff costs West Coast Code Consultants Inc. - WC-3 Daily project management; cost management; coordination with contractor, developer and other regulatory agencies 225.00$ 40 108,000$ Successor Agency Project Management Staff Costs Sharon Ranals, Successor Agency Executive Director Overall project management, coordination with developer, staff and legal counsel 301.73$ 1 3,621$ Nell Selander, Director of Economic & Community Development Overall project management, coordination with developer, staff and legal counsel 238.04$ 4 11,426$ Jennifer Clemente, Financial Services Manager Contract interpretation, implementation and dispute resolution for all contracts related to the enforceable obligations included in the DDA 152.16$ 2 3,652$ Legal Expenses Meyers Nave Contract interpretation, implementation and dispute resolution for all contracts related to the enforceable obligations included in the DDA 463.50$ 2 11,124$ Total 177,307$ SUCCESSOR AGENCY SOUTH SAN FRANCISCO Oyster Point IIC DDA Soft Project Management costs 24-25 July 2024-June 2025 7 23-24 24-25 July 2023-June 2024 July 2024-June 2025 Staff Description Requested Actual Variance Requested Requested Variance Comment/Explanation for Variance City Manager Agency and project administration 44,116$ 44,116$ -$ 49,467$ 36,208$ 13,259$ Director, Econ & Comm Dev Agency and project administration 9,621$ 9,621$ 0$ 13,643$ 28,565$ (14,921)$ Deputy Dir, Econ & Comm Dev Agency and project administration 8,467$ 8,467$ 0$ 10,857$ -$ 10,857$ Economic Development Coordinator Agency and project administration 8,267$ 8,267$ 0$ 8,269$ -$ 8,269$ Management Analyst II Agency and project administration 9,903$ 9,903$ 0$ 7,005$ -$ 7,005$ Management Analyst I Agency and project administration 9,903$ 9,903$ 0$ 5,241$ -$ 5,241$ Administrative Assistant I Agency and project administration 4,236$ 4,236$ 0$ 4,249$ -$ 4,249$ City Clerk Agency meeting administration 3,659$ 3,659$ 0$ 3,469$ 4,688$ (1,220)$ Deputy City Clerk Agency meeting administration 2,743$ 2,743$ (0)$ 1,969$ 2,320$ (350)$ City Clerk Records Technician Agency meeting administration 857$ 857$ (0)$ 1,685$ 1,611$ 75$ Director, Finance Agency administration 38,902$ 38,902$ -$ 40,318$ 19,635$ 20,683$ Deputy Director, Finance Agency administration 11,721$ 11,664$ 57$ 12,648$ -$ 12,648$ Senior Accountant Agency administration 15,152$ 15,152$ (0)$ 20,917$ 7,102$ 13,815$ Administrative Assistant II Agency administration 2,942$ 2,942$ (0)$ 3,902$ 4,550$ (648)$ Rounding Adjustment Agency administration (490)$ -$ (490)$ (639)$ (639)$ 170,000$ 170,432$ (432)$ 183,000$ 104,677$ 78,323$ Vendor/Payee Description Requested Actual Variance Requested Requested Variance RSG, Inc Successor Agency Consultant 25,000$ 16,610$ 8,390$ 25,000$ 25,000$ -$ Maze and Associates Auditor 4,000$ 4,000$ -$ 6,000$ 4,000$ 2,000$ Adjust for recent actual costs Meyers Nave Legal Counsel 50,000$ 101$ 49,899$ 30,000$ 30,000$ -$ BNY Mellon SSF Escrow Deposit & Trustee 1,250$ (1,250)$ 2,500$ 4,000$ (1,500)$ Cost varies annually Willdan Financial Services Continuing Disclosure Agent/Arbitrage -$ 2,500$ 4,000$ (1,500)$ Cost varies annually Overhead Supplies, facilities, etc. 1,000$ -$ 1,000$ 1,000$ 1,000$ 80,000$ 21,961$ 58,039$ 67,000$ 67,000$ -$ 250,000$ 192,393$ 57,607$ 250,000$ 171,677$ 78,323$ Sub-Total (Other Costs) Grand Total ADMINISTRATIVE BUDGET SOUTH SAN FRANCISCO SUCCESSOR AGENCY Sub-Total (Personnel Costs) 22-23 July 2022-June 2023 ROPS Period Obligations Period Total Outstanding Obligations ($) Total Number of Outstanding Obligations 21,977,699$ 7 Please specify budget methodology (Cost Allocation, Time Study etc) Cost Allocation Adjustments for salary/benefits and estimated hours 8 Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: South San Francisco County: San Mateo Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 24-25A Total (July - December) 24-25B Total (January - June) ROPS 24-25 Total A Enforceable Obligations Funded as Follows (B+C+D) $ 544,519 $ - $ 544,519 B Bond Proceeds - - - C Reserve Balance - - - D Other Funds 544,519 - 544,519 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ - $ - $ - F RPTTF - - - G Administrative RPTTF - - - H Current Period Enforceable Obligations (A+E) $ 544,519 $ - $ 544,519 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 9 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025 A B C D E F G H I J K N Q Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 24-25 Total ROPS 24-25A (Jul - Dec) 24-25A Total Fund Sources Other Funds $21,977,699 $544,519 $544,519 $544,519 12 Oyster Point Ventures DDA OPA/DDA/ Construction 03/23/ 2011 11/11/2026 Oyster Pt Ventures, LLC DDA Sections 3.2.1 Phase IC Improvements and 3.4.1 Improvement Costs Merged - N $- - $- 13 Oyster Point Ventures DDA OPA/DDA/ Construction 03/23/ 2011 11/11/2026 Various contractors/staff DDA Section 5.2 Environmental Indemnification Merged 18,513,268 N $- - $- 14 Oyster Point Ventures DDA Project Management Costs 03/23/ 2011 11/11/2026 Legal/Staff costs Soft project management costs Merged 177,307 N $177,307 177,307 $177,307 16 Harbor District Agreement Improvement/ Infrastructure 03/25/ 2011 11/11/2026 Harbor District Secs. 5.0 lease rev; 7.0 temp. office Merged 1,793,248 N $- - $- 17 Harbor District Agreement Project Management Costs 03/25/ 2011 11/11/2026 Legal/Staff costs Soft project management costs Merged 798,341 N $- - $- 48 Administration Costs Admin Costs 07/01/ 2024 06/30/2025 Legal/Staff costs Costs to administer Successor Agency Merged 500,000 N $171,677 171,677 $171,677 73 San Mateo Community College District Litigation Litigation 07/01/ 2022 06/30/2025 Legal costs / Meyers Nave Litigation expenses that are an enforceable obligation under HSC 34171(d)(1)(F)(ii) Merged 195,535 N $195,535 195,535 $195,535 10 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022 (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 21-22 Cash Balances (07/01/21 - 06/30/22) 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 07/01/21) RPTTF amount should exclude "A" period distribution amount. 22,676,763 4,332,607 E: Funds reserved for Oyster Point Escrow Account ($22,676,763) F: Other Funds reserved for ROPS 21-22 ($3,912,474) + ROPS 22-23 ($231,620) + ROPS 23-24 ($188,513) 2 Revenue/Income (Actual 06/30/22) RPTTF amount should tie to the ROPS 21-22 total distribution from the County Auditor-Controller 7,752,518 1,521,494 4,327,729 E: Deposits and interest earned Oyster Point Escrow Account ($7,752,518). F: Other Funds revenues from Interest ($60,269), Commercial Rehab Loan ($16,224), City Advance repayment to Successor Agency ($1,445,000) 3 Expenditures for ROPS 21-22 Enforceable Obligations (Actual 06/30/22) 15,705,096 3,912,474 4,137,495 E: Drawdowns from Oyster Point Escrow Account F and G: Other Funds and RPTTF expenses match PPA 21-22 4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 14,724,185 420,133 E: Funds reserved for Oyster Point Escrow Account ($14,724,185) F: Other Funds reserved for ROPS 22-23 ($231,620) and ROPS 23-24 ($188,513). 11 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 21-22 Cash Balances (07/01/21 - 06/30/22) 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 5 ROPS 21-22 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 21-22 PPA form submitted to the CAC No entry required 190,234 PPA 21-22 6 Ending Actual Available Cash Balance (06/30/22) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $- $- $- $1,521,494 $- 12 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025 Item # Notes/Comments 12 13 14 16 17 48 73 13 South San Francisco ROPS 24-25 1 14 ROPS 24-25$544,519 REQUESTED 2 ROPS Item Requested Item 12 Oyster Point Project Costs $0 Item 14 Oyster Point Project Mgnt $177,307 Item 48 Admin Cost Allowance $171,677 Item 73 Litigation Costs $195,535 Total Requested $544,519 Entire Request from Other Funds 15 Oyster Point Site Plan 16 Vision for Oyster Point Kilroy Realty 17 Oyster Point IIC Existing Conditions 18 Oyster Point IICImprovement Plan 19 OYSTER POINT DDA PROPERTY TAX IMPACT 7 Property Tax Estimates Annual 2011: $840,000 2024: $24 million 2043: $35 million Cumulative (2% Growth from 2024) 2030: $180 million 2040: $484 million 2050: $855 million 20 OYSTER POINT DDAPROJECT MANAGEMENT (ITEM 14) Position Tasks Average Hrs/Mo Fully Loaded Hr Rate Total Annual Cost Deputy Capital Improvement Projects Director Project and contract management specific to Oyster Point DDA project 10 $171.06 $10,264 Public Works Director Project and contract management specific to Oyster Point DDA project 10 $243.51 $29,221 Project Management Services (WC-3) Daily project management; cost management; coordination with contractor, developer and other regulatory agencies 40 $225.00 $108,000 City Manager / Successor Agency Executive Director Overall project management, coordination with developer, staff and legal counsel 1 $301.73 $3,621 Director of Economic & Community Development Overall project management, coordination with developer, staff and legal counsel 4 $238.04 $11,426 Financial Services Manager Support cost/contract management, payment of project invoices, transfers between escrow accounts 2 $152.16 $3,652 Legal Services (Meyers Nave) Contract interpretation, implementation and dispute resolution for all contracts related to the enforceable obligations included in the DDA 2 $463.50 $11,124 Total Estimated Budget $177,307 8 21 ADMINISTRATIVE BUDGETFY 2024-25 (ITEM 48) 9 Description of Cost/Expense Amount Staff salaries, benefits, and payroll taxes $104,677 Professional Services – Successor Agency Consulting (RSG, Inc.)25,000 Professional Services – Auditors (Maze & Associates)4,000 Professional Services – Legal (Meyers Nave)30,000 Professional Services – Oyster Point Escrow Account Trustee & Continuing Disclosure 8,000 Total Budget $171,677 22 LITIGATION EXPENSESFY 2024-25 (ITEM 73) 10 Description of Cost/Expense Amount Total Legal Fees and Costs for Arbitration $218,816 Costs Reimbursed by District ( 23,281) Remaining Obligation $195,535 Enforceable obligation under HSC 34171(d)(1)(F)(ii) Contracts or agreements necessary for successor agency administration or operation including agreements concerning litigation expenses related to assets or obligations 23 ROPS 24-25$544,519 REQUESTED 11 ROPS Item Requested Item 12 Oyster Point Project Costs $0 Item 14 Oyster Point Project Mgnt $177,307 Item 48 Admin Cost Allowance $171,677 Item 73 Litigation Costs $195,535 Total Requested $544,519 Entire Request from Other Funds 24 NEXT STEPS Successor Agency forwards ROPS to Oversight Board Oversight Board meeting on January 8, 2024 ROPS due to DOF February 1, 2024 DOF Determination due by April 15, 2024 Property Tax Revenue distributed 6/1/24 and 1/2/25 25 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-1054 Agenda Date:12/13/2023 Version:1 Item #:1a. Resolution of the successor agency to the redevelopment agency of the City of South San Francisco, reviewing and approving the Recognized Obligation Payment Schedule and administrative budget for the period July 1, 2024, through June 30, 2025, pursuant to Health and Safety Code Sections 34177(J) AND 34177(L) WHEREAS,pursuant to Part 1.85 of Division 24 of the California Health and Safety Code (“HSC”)Section 34170 et seq.(“Dissolution Act”),the Redevelopment Agency of the City of South San Francisco (“RDA”)was dissolved as of February 1, 2012; and WHEREAS,the Successor Agency to the Redevelopment Agency of the City of South San Francisco (“Successor Agency”)succeeded to all assets,properties,contracts,leases,books and records,buildings,and equipment of the former RDA and,except as repealed,restricted,or revised by the Dissolution Act,was vested with all authority,rights,powers,duties,and obligations under the California Community Redevelopment Law (HSC Section 33000 et seq.) previously vested with the RDA; and WHEREAS,HSC Section 34177(l)requires the Successor Agency to prepare a Recognized Obligation Payment Schedule (“ROPS”)for each 12-month fiscal period,which lists the outstanding obligations of the former RDA and states the sources of funds for required payments; and WHEREAS,HSC Section 34177(j)requires the Successor Agency to prepare a proposed administrative budget and submit it to the San Mateo Countywide Oversight Board (“Oversight Board”) for approval; and WHEREAS,Successor Agency staff has prepared a ROPS for the July 1,2024 through June 30,2025 fiscal period (“ROPS 24-25”),which,pursuant to HSC Section 34177(l),must be approved by the San Mateo Countywide Oversight Board (“Oversight Board”)and submitted to the State Department of Finance (“DOF”) no later than February 1, 2024; and WHEREAS,the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco has prepared an administrative budget for the period July 1,2024 to June 30,2025 (“Administrative Budget”) as set forth in the attached Exhibit B; and WHEREAS,the Oversight Board will review ROPS 24-25 and the Administrative Budget on January 8,2024; and WHEREAS,the Successor Agency desires to approve the ROPS 24-25 and the Administrative Budget and transmit it to various parties as required by the Dissolution Act; and NOW,THEREFORE,the Successor Agency to the Redevelopment Agency of the City of South San Francisco, does hereby resolve as follows: 1.The Recitals set forth above are true and correct, and are incorporated herein by reference; City of South San Francisco Printed on 12/8/2023Page 1 of 2 powered by Legistar™26 File #:23-1054 Agenda Date:12/13/2023 Version:1 Item #:1a. 2.The draft ROPS 24-25,attached hereto as Exhibit A,was prepared by the Successor Agency,reviewed and approved by the Successor Agency Board, and will be submitted to the Oversight Board; 3.In accordance with HSC Section 34177(j),the Successor Agency hereby approves the Administrative Budget for the period July 1,2024 through June 30,2025,attached hereto as Exhibit B,contingent upon approval by the Oversight Board at its meeting on January 8, 2024; 4.The City Finance Director or designee is authorized to modify the draft ROPS 24-25 and the Administrative Budget to correct errors,to update the ROPS 24-25 if necessary as a result of subsequent review by the Oversight Board,and provide clarifications consistent with requirements of the State Department of Finance and the intent of this Resolution; 5.The Executive Director of the Successor Agency or designee is authorized and directed to take all actions necessary to implement this Resolution,including without limitation,the submittal of the draft ROPS 24-25 to the Oversight Board,the County Auditor-Controller,the County Administrative Officer, the State Department of Finance,and the State Controller,and the posting of this Resolution and the draft ROPS 24-25 on the Successor Agency’s website; 6.The Finance Director or designee is authorized to incorporate the items on the ROPS into the 2024-25 operating budget once the ROPS is approved; 7.The Executive Director and the Finance Director,and their designees,are authorized and directed to take such actions as necessary and appropriate to carry out and implement the intent of this Resolution, including without limitation,the establishment of separate accounts and funds as necessary to appropriately document the receipts and expenditures of the Successor Agency; and 8.The Executive Director of the Successor Agency and/or his designee are authorized to execute contracts and agreements for the items listed on the July 1,2024 through June 30,2025 ROPS,as approved by the Oversight Board,up to the amounts specified on the approved ROPS for such items,unless specifically directed otherwise by the Oversight Board. City of South San Francisco Printed on 12/8/2023Page 2 of 2 powered by Legistar™27 Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: South San Francisco County: San Mateo Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 24-25A Total (July - December) 24-25B Total (January - June) ROPS 24-25 Total A Enforceable Obligations Funded as Follows (B+C+D) $ 544,519 $ - $ 544,519 B Bond Proceeds - - - C Reserve Balance - - - D Other Funds 544,519 - 544,519 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ - $ - $ - F RPTTF - - - G Administrative RPTTF - - - H Current Period Enforceable Obligations (A+E) $ 544,519 $ - $ 544,519 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 28 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025 A B C D E F G H I J K N Q Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date Payee Description Project Area Total Outstanding Obligation Retired ROPS 24-25 Total ROPS 24-25A (Jul - Dec) 24-25A Total Fund Sources Other Funds $21,977,699 $544,519 $544,519 $544,519 12 Oyster Point Ventures DDA OPA/DDA/ Construction 03/23/ 2011 11/11/2026 Oyster Pt Ventures, LLC DDA Sections 3.2.1 Phase IC Improvements and 3.4.1 Improvement Costs Merged - N $- - $- 13 Oyster Point Ventures DDA OPA/DDA/ Construction 03/23/ 2011 11/11/2026 Various contractors/staff DDA Section 5.2 Environmental Indemnification Merged 18,513,268 N $- - $- 14 Oyster Point Ventures DDA Project Management Costs 03/23/ 2011 11/11/2026 Legal/Staff costs Soft project management costs Merged 177,307 N $177,307 177,307 $177,307 16 Harbor District Agreement Improvement/ Infrastructure 03/25/ 2011 11/11/2026 Harbor District Secs. 5.0 lease rev; 7.0 temp. office Merged 1,793,248 N $- - $- 17 Harbor District Agreement Project Management Costs 03/25/ 2011 11/11/2026 Legal/Staff costs Soft project management costs Merged 798,341 N $- - $- 48 Administration Costs Admin Costs 07/01/ 2024 06/30/2025 Legal/Staff costs Costs to administer Successor Agency Merged 500,000 N $171,677 171,677 $171,677 73 San Mateo Community College District Litigation Litigation 07/01/ 2022 06/30/2025 Legal costs / Meyers Nave Litigation expenses that are an enforceable obligation under HSC 34171(d)(1)(F)(ii) Merged 195,535 N $195,535 195,535 $195,535 29 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022 (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 21-22 Cash Balances (07/01/21 - 06/30/22) 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 07/01/21) RPTTF amount should exclude "A" period distribution amount. 22,676,763 4,332,607 E: Funds reserved for Oyster Point Escrow Account ($22,676,763) F: Other Funds reserved for ROPS 21-22 ($3,912,474) + ROPS 22-23 ($231,620) + ROPS 23-24 ($188,513) 2 Revenue/Income (Actual 06/30/22) RPTTF amount should tie to the ROPS 21-22 total distribution from the County Auditor-Controller 7,752,518 1,521,494 4,327,729 E: Deposits and interest earned Oyster Point Escrow Account ($7,752,518). F: Other Funds revenues from Interest ($60,269), Commercial Rehab Loan ($16,224), City Advance repayment to Successor Agency ($1,445,000) 3 Expenditures for ROPS 21-22 Enforceable Obligations (Actual 06/30/22) 15,705,096 3,912,474 4,137,495 E: Drawdowns from Oyster Point Escrow Account F and G: Other Funds and RPTTF expenses match PPA 21-22 4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 14,724,185 420,133 E: Funds reserved for Oyster Point Escrow Account ($14,724,185) F: Other Funds reserved for ROPS 22-23 ($231,620) and ROPS 23-24 ($188,513). 30 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 21-22 Cash Balances (07/01/21 - 06/30/22) 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 5 ROPS 21-22 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 21-22 PPA form submitted to the CAC No entry required 190,234 PPA 21-22 6 Ending Actual Available Cash Balance (06/30/22) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $- $- $- $1,521,494 $- 31 South San Francisco Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025 Item # Notes/Comments 12 13 14 16 17 48 73 32 23-24 24-25 July 2023-June 2024 July 2024-June 2025 Staff Description Requested Actual Variance Requested Requested Variance Comment/Explanation for Variance City Manager Agency and project administration 44,116$ 44,116$ -$ 49,467$ 36,208$ 13,259$ Director, Econ & Comm Dev Agency and project administration 9,621$ 9,621$ 0$ 13,643$ 28,565$ (14,921)$ Deputy Dir, Econ & Comm Dev Agency and project administration 8,467$ 8,467$ 0$ 10,857$ -$ 10,857$ Economic Development Coordinator Agency and project administration 8,267$ 8,267$ 0$ 8,269$ -$ 8,269$ Management Analyst II Agency and project administration 9,903$ 9,903$ 0$ 7,005$ -$ 7,005$ Management Analyst I Agency and project administration 9,903$ 9,903$ 0$ 5,241$ -$ 5,241$ Administrative Assistant I Agency and project administration 4,236$ 4,236$ 0$ 4,249$ -$ 4,249$ City Clerk Agency meeting administration 3,659$ 3,659$ 0$ 3,469$ 4,688$ (1,220)$ Deputy City Clerk Agency meeting administration 2,743$ 2,743$ (0)$ 1,969$ 2,320$ (350)$ City Clerk Records Technician Agency meeting administration 857$ 857$ (0)$ 1,685$ 1,611$ 75$ Director, Finance Agency administration 38,902$ 38,902$ -$ 40,318$ 19,635$ 20,683$ Deputy Director, Finance Agency administration 11,721$ 11,664$ 57$ 12,648$ -$ 12,648$ Senior Accountant Agency administration 15,152$ 15,152$ (0)$ 20,917$ 7,102$ 13,815$ Administrative Assistant II Agency administration 2,942$ 2,942$ (0)$ 3,902$ 4,550$ (648)$ Rounding Adjustment Agency administration (490)$ -$ (490)$ (639)$ (639)$ 170,000$ 170,432$ (432)$ 183,000$ 104,677$ 78,323$ Vendor/Payee Description Requested Actual Variance Requested Requested Variance RSG, Inc Successor Agency Consultant 25,000$ 16,610$ 8,390$ 25,000$ 25,000$ -$ Maze and Associates Auditor 4,000$ 4,000$ -$ 6,000$ 4,000$ 2,000$ Adjust for recent actual costs Meyers Nave Legal Counsel 50,000$ 101$ 49,899$ 30,000$ 30,000$ -$ BNY Mellon SSF Escrow Deposit & Trustee 1,250$ (1,250)$ 2,500$ 4,000$ (1,500)$ Cost varies annually Willdan Financial Services Continuing Disclosure Agent/Arbitrage -$ 2,500$ 4,000$ (1,500)$ Cost varies annually Overhead Supplies, facilities, etc. 1,000$ -$ 1,000$ 1,000$ 1,000$ 80,000$ 21,961$ 58,039$ 67,000$ 67,000$ -$ 250,000$ 192,393$ 57,607$ 250,000$ 171,677$ 78,323$ Sub-Total (Other Costs) Grand Total ADMINISTRATIVE BUDGET SOUTH SAN FRANCISCO SUCCESSOR AGENCY Sub-Total (Personnel Costs) 22-23 July 2022-June 2023 ROPS Period Obligations Period Total Outstanding Obligations ($) Total Number of Outstanding Obligations 21,977,699$ 7 Please specify budget methodology (Cost Allocation, Time Study etc) Cost Allocation Adjustments for salary/benefits and estimated hours 33