Oversight Board Meeting

MINUTES CITY OF MONTEREY OVERSIGHT BOARD MEETING Wednesday, May 9, 2012 – 4 - 6 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members Present : Chip Rerig, Mitchel Winick, Harvey Kuffner, Chuck Della Sala, Michael Adamson and Stephen Ma Absent: Dave Potter City Staff Present: Finance Director, Housing and Property Manager, City Attorney, and Secretary to Board CALL TO ORDER Chair Rerig called the meeting to order at 4:03 PM. 1. A Tour of the Redevelopment Project areas was conducted prior to the regular meeting; board members and staff leave for tour and the meeting closed briefly. Board members return at 4:55 p.m. and the meeting resumes. Board member Ma joins meeting. OPENING REMARKS Chair Rerig asks that each board member introduce himself. Mr. Adamson said he was nominated by Monterey Peninsula Regional Park District where he is a Board member for 5 years. It is the largest beneficiary of tax dollars in the County and he currently works for Monterey County Bank. He’s also a private consultant and owns an Antique shop with his wife. Mr. Kuffner said he was appointed by Superintendent of Schools for Monterey County. He is the representative for the area covering Carmel, Monterey and Big Sur. Mr. Della Sala said he was nominated by Chip Rerig; he’s the Mayor of Monterey and owns a commercial property realty business for the past 34 years. Mr. Ma said he was appointed by the State Chancellor’s office and is the Dean of Administrative of Services for Monterey Peninsula College. He joined MPC 18 months ago and he’s originally from San Diego. Mr. Winick said was appointed by Monterey County Board of Supervisors and he’s the President and Dean of Monterey College of Law. He moved from Texas in 2005 and he’s been here 7 years. He stated that as a result of the Ft Ord Reuse, MCL received 2.6 acres and a new facility and center were built there. They are LEED buildings and were the first redone as Platinum LEED. Mr. Rerig said he’s the Chief of Planning, Engineering and Environmental Compliance for the City of Monterey and manages a number of offices; said he was appointed by the Mayor and confirmed by City Council and represent the largest employee group that was formerly the RDA. APPROVALSOF MINUTES 2. The Minutes of the April 25, 2012 meeting were approved by the following vote: On a motion by Member Adamson and seconded by Member Della Sala. The motion carried unanimously by the following vote: PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 9th day of May, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Adamson, Kuffner, Ma NOES: MEMBERS: None ABSENT: MEMBERS: Potter ABSTAIN: MEMBERS: None 1 PUBLIC APPEARANCE 3. Adopt By-Laws for the Oversight Board for the City of Monterey Successor Agency Staff Presentation/Board Member Questions Staff member Marvin presented a report to the Board. He stated that City’s counsel, Goldfarb & Lipman assisted staff in the preparation of the Bylaws and that if Board members request any information, Goldfarb & Lipman would be able to provide their legal assessment. Board Comments: Board member Della Sala asked whom from Staff had reviewed the By-Laws. Staff member Marvin stated that only him and no other staff member had reviewed the By-Laws. Board member Kuffner had a question about the language on Section 3(a)(4) - Page 4 of the By-Laws being proposed. City attorney Davi stated that she would double check but that the language Mr. Kuffer referred to came out of the statute and that if the Superintendent to Monterey County Office of Education is elected, then she could appoint. Staff member Marvin stated that that section on page 4 could be modified but that a motion to amend needs to be made. Board member Winick questions Section 3(b) “Duration.” He asked if the Board completes its business earlier, then Part 1 then would the Successor Agency be placed at a policy risk. City attorney Davi stated that those dates are pursuant to the statute and that as of 2016, those will all be gone and the winding down mode for the SA would be to “institute” another board. Board Member Kuffner moves to approve the By-laws with corrections referenced on page 4 of the By- Laws. 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 Kuffner, seconded by Member Winick, the Board unanimously moved to adopt the By-Laws for the Oversight Board for the City of Monterey Successor Agency with the corrections to page 4 as referenced above. PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 9th day of May, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Ma, Adamson, Kuffner NOES: MEMBERS: None ABSENT: MEMBERS: Potter ABSTAIN: MEMBERS: None 4. Solicitation of Legal Counsel for the Oversight Board Staff Presentation/Board Member Questions: City Attorney Davi presented the report and answered Board’s questions. She stated that it is important to seek outside legal counsel to avoid any conflict of interest between City and the Oversight Board. The funding would be out of the Administrative Budget ($250,000). City Attorney office could send out a request for proposals for any interested attorneys for this type of position. Her office would review responses received and bring it back to Board for review/approval. The Board may choose not to have a counsel, but there are FPPC, Brown Act and other laws applicable to running this Board; 2 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: Board member Kuffner asked Ms. Davi if counsel is appointed, would that individual have to be present at all meetings. City attorney Davi stated that other Oversight Boards have solicited counsel on a “As Needed Basis.” Other cities have obtained a conflict waiver, but she did not recommend this course of action. Board member Winick stated that unless there are items needing counsel, then the Board should select someone and On-Call basis. Board member Adamson stated that it would be okay to have an attorney present just to keep them “in order.” Board member Della Sala asked if City attorney Davi would be returning to Oversight Board meetings. City attorney Davi stated that she could return and provide information on the Brown Act, but she is not sure about being comfortable to answer Oversight Board’s questions. Board member Della Sala asked if there is a list of attorneys available to work for Oversight Boards. Board member Winick asked for City Attorney’s recommendations for those attorneys if an RFP is going out. He mentioned that the City of Fresno’s Oversight Board was sued by their own city attorney. Chair Rerig asked City Attorney Davi if she would be able to provide counsel on most items. City Attorney replied negatively. The request was made to City Attorney Davi to prepare and bring information for the Request For Proposals process soliciting counsel to the Oversight Board. 5. Approval of Initial Recognized Obligation Payment Schedule Staff Presentation/Board Member Questions: Finance Director Rhodes presented a Power Point presentation regarding the Initial ROPS and a second ROPS. He stated that the Board will be asked to approve the Initial ROPS; and then review and approve the second ROPS. The Second ROPS funds the second six-month period of 2012. The Initial ROPS is the largest item on the list and it contains a list of Projects. Staff member Marvin stated that $2.3 Million dollars were identified as funds to replace low income units. These funds originated from the sale of 10-deed restricted BMR units which were sold at market-rate. They were purchased with RDA funds; a $5.0M seawall needed to be put in place. The assessed HOA fee did not make these Units affordable and they need to be replaced with another 10 in the community. These are obligations of affordable housing and he recommended replacement of these conversion units so that Successor Housing Agency (SHA) can continue to count the units and meet the City’s low and moderate income housing laws. Just like the Monterey Hotel, these are housing assets and they need to be transferred to the SHA. In the future Successor Agency will be requested to transfer them to SHA. 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: Chair Rerig restated that RDA law, as it relates to housing, has not been eliminated; City is still obligated to provide affordable housing. Mr. Marvin said that if City redevelops an area and remove units of affordable housing, the law requires that those units be replaced. Board member Ma asked for clarification of the ownership of the Monterey Hotel and who owns it. Staff member Marvin said that City (RDA) is in a second position in regard to its debt; Rabobank is in first position; the Owner was never removed as the owner and that City is trying get into a better position and anticipate that Rabobank will be renegotiating with Owner. MOTION: On a motion by Board member Winick, seconded by Member Kuffner, the Board moved unanimously to approve the Initial ROPS. 3  PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 9th day of May, 2012, by the following vote: AYES: MEMBERS: Rerig, Winick, Della Sala, Ma, Adamson, Kuffner NOES: MEMBERS: None ABSENT: MEMBERS: Potter ABSTAIN: MEMBERS: None 6. Approval of Second Recognized Obligation Payment Schedule Staff Presentation/Board Member Questions: Finance Director Rhoads presented the staff report and answered Boards’ questions. He further stated that Board members would not be approving the reimbursement agreement. 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: None. MOTION: On a motion by Board member Winick, seconded by Member Ma, the Board moved unanimously to approve the Second Recognized Obligation Payment Schedule. PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 9th day of May, 2012, by the following vote: AYES: 6 MEMBERS: Rerig, Winick, Della Sala, Ma, Adamson, Kuffner NOES: MEMBERS: None ABSENT: 1 MEMBERS: Potter ABSTAIN: MEMBERS: None 7. Confirm Transfer of Former Redevelopment Agency Housing Assets from Successor Agency to Successor Housing Agency Staff Presentation/Board Member Questions: Staff member Marvin stated that due to time constraints in clearing the City Council chambers for another meeting shortly after the Oversight Board’s, he suggested that the Board take more time to deliberate and review this item and suggested it to table it for next meeting. 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: None. MOTION: On a motion by Board member Dela Salla, seconded by Board Member Adamson, the Board unanimously moved to table this item for next meeting. 4 PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 9th day of May, 2012, by the following vote: AYES: 6 MEMBERS: Rerig, Winick, Della Sala, Ma, Adamson, Kuffner NOES: MEMBERS: None ABSENT: 1 MEMBERS: Potter ABSTAIN: MEMBERS: None PUBLIC COMMENTS No member of the public provided input. Public Comments closed. MEMBER COMMENTS Member Kuffner asked why the Conflict of interest rules were not reviewed. Staff member Marvin stated that City can adopt its own and that the City Council will review and approve those changes. No additional comments from Board members. ADJOURNMENT There being no further business, the meeting adjourned at 6:05 PM. Respectfully Submitted, Approved, _______________________ _______________________ Maria Buell Chip Rerig Clerk, Oversight Board Chair, Oversight Board The next regular meeting of the Oversight Board is scheduled for June 27, 2012 at 7:00 p.m. The following regular scheduled meeting of the Oversight Board is set for Wednesday, July 25, 2012 at 7 p.m. 5