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Home My WebLink AboutE-8 Staff Report - Approve Azusa-RMC JPA FY 2022-23CONSENT ITEM E-8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: AUGUST 15, 2022 SUBJECT: ADOPT RESOLUTION APPROVING THE AZUSA-RMC JOINT POWERS AUTHORITY BUDGET FOR FISCAL YEAR 2022-23 BACKGROUND: In 2016, the City Council took several actions to establish the Azusa-RMC Joint Powers Authority which will long-term manage the hillside open space property north of the Rosedale project. The Authority was formed in partnership with the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy (Conservancy). As set forth in the Azusa-RMC Joint Powers Authority’s (JPA) Joint Exercise of Powers Agreement, an adopted annual budget shall be in a form approved by the Conservancy (RMC) and by the City of Azusa, and shall be submitted to the Azusa City Council and the Board of the Conservancy for review and approval. At 2:00 p.m. on August 15, 2022, the JPA will meet to approve the proposed Fiscal Year 2022-23 budget (Attachment 1). Subsequent to the JPA’s approval, the City Council must review and approve the annual budget. The proposed action adopts Resolution No. 2022-C56 approving the Azusa-RMC Joint Powers Authority Budget for Fiscal Year 2022-23. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Adopt Resolution No. 2022-C56 approving the Azusa-RMC Joint Powers Authority Budget for Fiscal Year 2022-23. ANALYSIS: In 2016, the City Council took several actions to establish the Azusa-RMC Joint Powers Authority to long-term manage the hillside open space property north of the Rosedale project. The Authority was formed in partnership with the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy. To date, the JPA has been funded with a $50,000 seed by Rosedale Land Partners in addition to in-kind services from the City and Conservancy. As of June 30, 2022, the seed money was depleted, and in fact, the JPA will have a negative fund balance of $1,615 once the annual financial audit is complete. APPROVED CITY COUNCIL 8/15/2022 Approve the Azusa-RMC Joint Powers Authority Budget August 15, 2022 Page 2 On July 18, 2022, the Council discussed a letter of intent served by the Conservancy to dissolve the JPA. At the same meeting, the City Council authorized $15,000 to help fund the JPA’s operational expenses such as insurances, financial auditing, legal, weed abatement, etc., while terms of the dissolution are resolved. Public funds may not be distributed by the Azusa-RMC Joint Powers Authority except pursuant to an annual budget. Furthermore, Section 6.2.2 of the Azusa-RMC Joint Powers Authority’s Joint Exercise of Powers Agreement states: Annual Budget. Annually, prior to July 1 of each year, the Board shall adopt a budget for all expenses to be made by the Authority during the ensuring Fiscal year and an allocation of contributions from Member Agencies. The Board shall adopt an annual budget in a form approved by the City and the Conservancy, which shall be submitted to the City Council of the City and the Board of the Conservancy for approval. Public funds may not be distributed by the Authority except pursuant to a budget which has been adopted by the Board and approved by the City council of the City and the Board of the Conservancy, and all receipts and disbursements shall be in strict conformance with the adopted and approved budget. The proposed Fiscal Year (FY) 2022-23 budget is attached, providing a detailed explanation of revenues and anticipated expenditures. During Fiscal Year 2021-22, it was anticipated the Authority would dissolve and subsequently, general liability and Directors/Officers insurance were not renewed for the following year. The proposed Fiscal Year 2022/23 budget would have been negative, if not for the $15,000 replenishment funds authorized by the City Council. This action allows the Authority to continue administrative and operational tasks while having further discussions on the Authority’s future and its operational viability. Expenditures are separated into administrative and operational components totaling $10,612. With the replenishment from the City, the estimated year-end balance is $2,773. The Azusa-RMC Joint Powers Authority will be holding a Board meeting at 2:00 p.m. on August 15, 2022 to adopt the proposed budget attached. Should any changes be made to the proposed budget at that meeting, Staff will provide a verbal report to City Council and request adoption of those changes. FISCAL IMPACT: Approval of this action, will transfer $15,000 from General Fund account 10-90-000-000-5950 to the Azusa-RMC JPA account 55-45-143-000-5940. Adoption of the proposed budget will leave a projected remaining Authority fund balance of $2,773. Approve the Azusa-RMC Joint Powers Authority Budget August 15, 2022 Page 3 Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1) Proposed Budget Fiscal Year 2022-23 2) Resolution No. 2022-C56 approving the Azusa-RMC JPA Budget for Fiscal Year 2022-23 Budget FY 2021 Actual as of 06/30/21 Projections FYE 2022 Actual as of 06/30/22 Budget FY 2023 Revenues General Administrative & Operating Revenue RMC JPA Contribution (in-kind)1,309 - - - - City of Azusa JPA Contribution (in-kind)- - - - - Other Miscellaneous Revenue - - - - - Subtotal-General Administrative & Operating 1,309 - - - - Grants and Special Projects Revenue Grant-Rivers & Mountains Conservancy - - - - - Grant-Other Federal, State, County & Local Funds - - - - - Other-Unrestricted 8,516 8,516 585 635 (1,615) Other-Donations - - - - - Other-Miscellaneous - - - - - Subtotal-Grants and Special Projects 8,516 8,516 585 635 (1,615) Total Revenue 9,825 8,516 585 635 (1,615) Expenses General Administrative Expenses Administrative Support (RMC in-kind)688 - - - - Legal Services (City in-kind)- - - - - Legal Services 147 147 500 - 1,000 Grant Writing - - - - - Financial Audit Services 2,250 2,500 2,350 2,250 4,500 Insurance/Insurance Bond 2,466 2,726 2,589 - 2,099 Other/Not Classified 300 - 300 - 300 Subtotal-General Administrative 5,851 5,373 5,739 2,250 7,899 General Operational Expenses Insurance 2,767 2,466 3,044 - 2,713 Security - - - - - Grounds Maintenance and Repair Contigency - - 500 - - Property Management (RMC in-kind)1,204 - - - - Weed Abatement - - 1,000 - - Subtotal-General Operational 3,971 2,466 4,544 - 2,713 Total Expense 9,822 7,839 10,283 2,250 10,612 Change In Net Position Before Transfers 3 677 (9,698)(1,615)(12,227) Transfers In - - - - 15,000 Transfers Out - - - - - Change In Net Position 3 677 (9,698)(1,615)2,773 AZUSA-RMC JOINT POWERS AUTHORITY CONSOLIDATED BUDGET FISCAL YEAR 2022/2023 DR A F T Attachment 1 RESOLUTION 2022-C56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA APPROVING THE AZUSA-RMC JOINT POWERS AUTHORITY BUDGET FOR FISCAL YEAR 2022-23 WHEREAS, the Azusa-RMC Joint Powers Authority (Authority) has been established as a joint powers authority between the City of Azusa and San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy; and WHEREAS, the Authority has been established to acquire, operate, and conserve additional park and open space lands including water-oriented recreation and conservation projects in the vicinity of the City of Azusa; and WHEREAS, this action approves the Fiscal Year 2022-23 Budget and appropriates funds accordingly; and WHEREAS, the proposed action is not a “project” under Section 15378(b)(5) of the California Environmental Quality Act (CEQA) Guidelines because it pertains to organizational or administrative activities that will not result in direct or indirect physical changes to the environment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa does hereby find, determine, and declare as follows: SECTION 1. Finds that this action is consistent with the purposes of the Authority. SECTION 2. Finds that the actions contemplated by this resolution are exempt from the requirements of CEQA. SECTION 3. Adopts the staff report dated August 15, 2022. SECTION 4. Approves the Fiscal Year 2022-23 Budget. PASSED, APPROVED and ADOPTED this 15th day of August, 2022. ___________________________________ Robert Gonzales Mayor Attachment 2 ATTEST: ___________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2022-C56 was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 15th day of August, 2022, by the following vote of the Council: AYES: COUNCILMEMBERS: NOS: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr., City Clerk APPROVED AS TO FORM: ___________________________________ Best Best & Krieger, LLP City Attorney