10-17-18 JDA Agenda Packet - Laserfiche WebLink

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Jenny Bolton, Kennedy & Graven, discussed the JPA from a big picture standpoint. She stated the overarching concept was that certain costs were identified that would be incurred by the two parties ahead of the development. Those costs were assigned to the two parties and a system was put in place for recovery of these costs. She explained the City would recover its costs through fees, assessments and charges in the development, when development occurs. It was noted the County will recover its fees through land sales. She reported the agreement states not all costs and revenues are known. She commented during the interim period each party was responsible for covering its own costs. She indicated the County was acting as the fiscal agent at this time and noted there were provisions for a budget to be approved. Ms. Bolton reported an annual budget was in place for 2018 and noted JDA staff had begun working on the 2019 budget. She commented on the language within the JPA regarding quarterly reports and noted staff was looking at updating that procedure in order to stay on track. She discussed the reimbursement policy and noted this policy was not prepared at this point. She indicated the City and County would need to identify how fees will be collected prior to development occurring. Commissioner Grant asked where the JPA allows the Fiscal Agent to reimburse itself expenses that were within the budget. Ms. Bolton stated this was written into the Bylaws in Section 4.7D. Commissioner Grant questioned if the Bylaws could contradict the JPA. Ms. Bolton advised the Bylaws were intended to implement or supplement the JPA. Commissioner Grant commented on a statement from the JPA that read: No disbursements shall be made from such accounts except by check or EFT, nor unless a verified claim for services and or commodities actually rendered or delivered has been submitted to and approved for payment by the JDA. Ms. Bolton stated in the process of approving the Bylaws, and the JDA approved a procedure which was laid out in the Bylaws. Commissioner Grant questioned how the JDA was to proceed when there was a conflict with the financial procedure. Ms. Bolton stated there was not a total conflict, rather the County was supplementing noting the County was serving as the Fiscal Agent. Chair Wicklund commented staff upon conversation with Ms. Bolton was working on a process for the annual budget and anticipated the JDA would be reviewing this soon. In addition, staff was working on quarterly reporting and a reimbursement policy. He asked what would be the one issue the JDA needs to address at this time. Ms. Bolton explained the reporting can be handled by staff, along with the budget. She suggested the reimbursement policy be addressed by the JDA along with the arrangement that has to be negotiated within the cooperative agreement between the City and County.