Oversight Board Meeting

MINUTES CITY OF MONTEREY OVERSIGHT BOARD MEETING Wednesday, April 25, 2012 - 7- 9 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members Present : Chip Rerig, Mitchel Winick, Harvey Kuffner, Chuck Della Sala, Stephen Ma, and Michael Adamson. Absent: Dave Potter City Staff Present: Finance Director, Housing and Property Manager, Assistant Finance Director, Interim City Attorney and Administrative Assistant II/Clerk to the Oversight Board. CALL TO ORDER Housing and Property Manager, Rick Marvin, called the meeting to order at 7:05 PM. OPENING REMARKS Opening remarks by Rick Marvin, Housing and Property Manager. OATHS OF OFFICE Maria Buell, Clerk to the Oversight Board, gave Oath of Office to Board Members (Potter and Ma absent). Board Member Ma arrives 7:10 p.m., and he’s given the Oath of Office during Item No. 2. PUBLIC APPEARANCE 1. Election of Chair and Vice Chair On a motion by Member Della Sala and seconded by Member Winick, Chip Rerig was nominated as Chair. The motion carried by the following vote: PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 25th day of April, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Adamson, Kuffner NOES: MEMBERS: None ABSENT: MEMBERS: Ma, Potter ABSTAIN: MEMBERS: None On a motion by Chair, Rerig and seconded by Member Kuffner, Member Winick was nominated to serve as Vice Chair. The motion carried by the following vote: PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 25th day of April, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Adamson, Kuffner NOES: MEMBERS: None ABSENT: MEMBERS: Ma, Potter ABSTAIN: MEMBERS: None 1 2. Receive a Report on the Role of Oversight Board Staff Presentation/Board Member Questions: Housing and Property Manager Marvin, presented the agenda report and answered Board’s questions. Mr. Marvin stated that the Oversight Board (OB) does not have review action or authority over the Successor Housing Agency (SHA). All OB actions are decisions which may be reviewed by the State Department of Finance and that Finance Director, Don Rhoads, would introduce the first ROP at tonight’s meeting. The fiduciary duties of the OB are to make decisions to refund agency’s debt or avoid debt spikes but not accelerate debt services; to review and approve ROPS; review proposed property transfers from the SA to the City; and. confirm the transfer of assets from the SA to the SHA. Mr. Marvin indicated that the City of Monterey does not have any outstanding debt from the former RDA. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. Board Member Ma arrives, is given the Oath of office and follows with a question to Finance Director Rhoads. Member Kuffner asks if there is a Budget for any type of technical advice to OB and if there is a budget item which the Board will be reviewing and approving. Finance Director Rhoads indicated that the Board will review a budget, that if the OB does feels they need additional information or input, that the OB members can engage or bring another professional member for additional advice/guidance. Member Kuffner asked if there is a list of professionals available and staff responded that the Board’s Administrative Budget does include funds for professional services. Housing and Property Manager Marvin stated that Staff could put together a list of consultants once the need has been identified by the OB. The OB can then decide to go forward with consulting professional services. 3. Receive a Report on the City of Monterey Redevelopment Agency Staff Presentation/Board Member Questions: Housing and Property Manager Marvin, stated that the field trip was canceled but a tour meeting will then be established pending direction by the Board. A van tour of the areas that Redevelopment has assisted would be: 1. Custom House (Urban Renewal area); this area contains a housing project which has been identified as housing asset because of affordable housing units it is providing; 2) Cannery Row (parking garage which assisted the redevelopment of Cannery Row area and that it has a lot of undeveloped areas which are privately owned and NOT an area which will not have a lot of activity; and, 3) the Greater Downtown area is the largest in Monterey. It extends from Downtown to Del Monte and Lake El Estero; some properties were assisted in funding through a bond effort. The bond has been paid off, but there is a housing project (the Monterey Hotel) which is a mixed use project with 18 affordable housing units which were funded by RDA in the amount of $3M. This project has had ongoing financing difficulties (a “broken project”). Before any disposition request of SA assets is made, a tour will be conducted. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 4. Review Draft Recognized Obligation Payment Schedule Staff Presentation/Board Member Questions: Finance Manager Don Rhoads, provided a short historical summary of the creation of the Redevelopment project areas in the City of Monterey, their current status and a brief introduction to each of the SA recognized obligations listed in the ROPS. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 2 5. Approval of Proposed Administrative Budget Pursuant to Health and Safety Code Section 34177(j) Staff Presentation/Board Member Questions: Finance Director Rhoads presented the agenda report and answered Boards’ questions. The budgets are for the period of January 1 thru June 30, 2012 and July 1 to December 31, 2012. The Dissolution Act provides for an Administrative Budget of $250K for 2012 and 2013 to fund its operating of winding down its operations. The $250K is the only amount allocated. The first 6-month period an allocation of $250K has been made and $125K for the remaining half of that fiscal year. So, basically it amounts to $125K every 6 months. It includes compensation for personnel costs and monies for professional services. This line item can address any professional services which might be needed by the Oversight Board. However, the Proposed Administrative Budget does need approval of the Board in order to get it to the County and make their tax allocations. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. MOTION: On a motion by Board member Della Sala, seconded by Member Kuffner, the Board moved to approve the Proposed Administrative Budget Pursuant to Health and Safety Code Section 34177(j). PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 25th day of April, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Ma, Adamson, Kuffner NOES: MEMBERS: None ABSENT: MEMBERS: Potter ABSTAIN: MEMBERS: None 6. Receive a Report on Action Items Scheduled for Review at Future Meetings: A. Adoption of Bylaws and Rules of Procedure B. Conflict of Interest Code C. Review and Adoption of Initial ROPS D. Review and Adoption of the Second ROPS E. Confirmation of Asset Transfer from Successor Agency to Successor Housing Agency F. Approval of Successor Agency Property and Asset Transfers Staff Presentation/Board Member Questions: Housing and Property Manager Marvin presented the report which was intended to introduce the Board to the issues and decisions they will address in future meetings and answered Boards’ questions. He stated that Items C and D on the list are of outmost importance and carry the highest priority; Item E: Confirmation of Asset transfer to Successor Housing Agency; Item F: Approval of Successor Agency property and asset transfers which contains a list of properties that have potential for significant importance to the City. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. Board Comments: Member Kuffner asked if there are any deadlines to meet. Housing and Property Manager Marvin 3 answered affirmatively and that at next Board meeting the agenda would include this item. The OB needs to meet in 1-2 weeks and then monthly after that. The By-laws, Conflict of Interest Code and the ROPS will be reviewed and approved at the next meeting. Chair Rerig introduced Interim City Attorney Christine Davi and Assistant Finance Director, Julie Porter. 7. Selection of Meeting Times and Dates Housing and Property Manager Marvin presented the Board with a list of future board meetings. It was anticipated that a meeting needed to be held on either May 9th or May 10th. Board members agreed to a meeting on May 9th from 4-6 p.m. and approved the remainder schedule of meetings to be set for the fourth Wednesday of every month in 2012 (excepting December – no meeting due to holidays). Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. MEMBERS’ COMMENTS Member Kuffner commended Staff for their efficiency and providing such reports on a very short timeframe. Member Winick commended Staff for well-written agenda reports and presentations. ADJOURNMENT There being no further business, the meeting adjourned at 8:30 PM. Respectfully Submitted, Approved, _______________________ _______________________ Maria Buell Chip Rerig Clerk, Oversight Board Chair, Oversight Board The next meeting of the Oversight Board is scheduled for May 9, 2012 at 4:00 p.m. The following regular scheduled meeting of the Oversight Board is set for Wednesday, June 27, 2012 at 7 p.m. 4