Oversight Board Meeting

MINUTES CITY OF MONTEREY OVERSIGHT BOARD MEETING Wednesday, June 27, 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, Michael Adamson, Dave Potter Absent: Harvey Kuffner, Stephen Ma 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 7:00 PM. This was Board member, Dave Potter’s, first meeting. An Oath of Office was conducted by Secretary to Board in order for Board member Potter to vote on the items presented on the agenda. The Board meeting resumed upon conclusion of this act. APPROVALS OF MINUTES 1. The Minutes of the May 9, 2012 meeting were approved by the following vote: On a motion by Member Winnick and seconded by Member Adamson, the motion carried unanimously by the following vote: A DOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of June, 2012, by the following vote: AYES: 4 MEMBERS: Rerig, Winick, Della Sala, Adamson, NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Kuffner, Ma ABSTAIN: 1 MEMBERS: Potter PUBLIC APPEARANCE 2. Receive Report to Update the Status of Legal Counsel Selection and Request Direction on Final Selection Process Staff Presentation/Board Member Questions City Attorney Christine Davi presented a report and asked the Board to select the process and level of involvement they felt comfortable with to secure legal counsel. Board Comments: Board member, Della Sala suggested forming an Ad-Hoc committee and that two Board members consider serving in it. 1 City attorney, Davi said that seven (7) proposals were received and that most are qualified and experienced with business but not public agency, Brown Act and other necessary knowledge the Oversight Board would need counsel with. Board member Della Sala requested that City attorney Davi should bring top three candidates to the Ad-Hoc Committee to discuss them openly City Attorney Davi asked if the OB would want to interview these candidates in closed session? Board Member Winnick asked what are the requirements? City Attorney Davi responded that it is up to the Board’s discretion but that the Board could interview the top candidates in closed session and then appoint the chosen person during the regular meeting. Board member Winnick said he likes the AdHoc committee idea; Board members could participate and interview the short list and then make recommendations to the OB. He suggested that Attorney Davi interview the candidates and then OB will interview the final top three. Board member Della Sala asked if the OB would only interview the top one? Board member Adamson asked if the City has specific requirements; for example, that the person selected be a local person, etc.? Board Chair, Rerig stated that there are no restrictions. City Attorney Davi said that she received interest from local and out-of-town attorneys. Board member Winnick recommends City Attorney Davi contact 2-3 members of the Board to serve on the Ad-Hoc Committee. Board member Winnick volunteered to serve on the Ad-Hoc committee. Board directed City Attorney Davi to create an Ad Hoc committee and bring back top three candidates for Board to review. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 3. Receive Report on Status of Recognized Obligation Payment Schedule (ROPS) Certification and Approval Staff Presentation/Board Member Questions: Staff member Marvin presented a report to the Board outlining the review status of the ROPS and second ROPS by the Monterey County Controller/Auditor and State Department of Finance (DOF). Mr. Marvin stated that no response have been received from DOF. He also stated that the Dissolution Act does not outline an appeal process or a format for appealing decisions by either the Monterey County Controller or the DOF; He said that Staff is waiting for the process of certification scheduled to be completed by July 15, 2012. Mr. Marvin stated that the purpose of his presentation was to provide a status report to the Oversight Board. 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 Winnick asked if the DOF is confused about the obligation or the nature of the obligation that they are concerned with. Staff member Marvin stated that this is not an obligation through a contract or a development proposal which is the most typical obligation the DOF is looking for; rather it is something that the SA is required to fulfill by statute. That is, housing units converted from affordable to market rate must be replaced by law, not by a contract. Staff hopes that the Successor Agency will prevail. Board Chair Rerig asked Mr. Marvin if he had heard from other Redevelopment agencies in the County to gauge what type of responses they have received? Staff member Marvin said that he had not received any information of specific Obligations being rejected and that DOF is taking a very strict view of applying the law. Board member Potter said he had extensive conversations with County Controller’s office and that they are unsure as to when anything definitive will come out. Board Chair Rerig said that last piece of correspondence is a letter drafted by the City regarding the trailer bill as relates to Dissolution Act and for his interpretation. 2 Staff member Marvin said that City felt it was unfair, inappropriate and that it undermines the work of the Oversight Board and the local communities’ obligations. 3 4. Confirm Transfer of Former Redevelopment Agency Housing Assets from Successor Agency to Successor Housing Agency and Removal of Two (2) Parkland Parcels from Former Redevelopment Agency Properties List Staff Presentation/Board Member Questions: Staff member Marvin stated that an inadvertent error was made to the staff report. A revised Exit RDA Memorandum with explanations to Exit Memo are now attached. This document identifies the properties which are identified as Housing properties as well as those properties that are not RDA. Mr. Marvin said he failed to include an excerpt of the Facilities Lease for 717 Del Monte and 731 Del Monte which established a way for City to purchase which the City has exercised by paying off the Bond. (Additional documents were handed to all Board members and those attending the meeting). Mr. Marvin also added that 595 English Avenue is an affordable property purchased at end of February 2012 with RDA funds identified in our ROPS and that it is a housing asset. Mr. Marvin said this was the only change from the list received in their packet. He also said that the Reso in packet has a modified Exhibit A and that the Resolution must reflect the change and reference to the 595 English Avenue in that Exit Memo which is made part of the Resolution. Properties have been identified which should be transferred from the Successor Agency to the Successor Housing Agency (which City elected to become at the end of January). The Oversight Board was asked to confirm those property assets be transferred. Staff is also requesting that Loans which were housing assets now need to be transferred to the Successor Housing Agency and that Staff is asking the Oversight Board to confirm these transfers. In addition, Staff member Marvin said that two properties which were originally listed as RDA (717 and 731 Del Monte ) should NOT be on the list as they are already owned by the City of Monterey as a function of a purchase agreement. RDA monies were used to fund these, to generate bonds and purchase these lands; however, as bonds were paid off, the property then was vested to City. The City completed paying these bonds in 2010 and they are no longer an RDA asset and it should NOT been on the RDA asset list. Staff member Marvin requests that OB adopt, by Resolution, the Exit Memo which contains that memo regarding these properties. A revision will be made to the Reso correcting the referenced date in Exit Memo. 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 Chair Rerig asked Staff member Marvin to identify in Attachment 1 with an “x” the assets that were Housing only. Staff member Marvin stated that those shown on the Attachment marked with x on the housing column will be transferred to Successor Housing Agency and that 717 and 731 must be removed from this list. MOTION: On a motion by Board member Winnick, seconded by Member Adamson, the Board unanimously moved to Confirm Transfer of Former Redevelopment Agency Housing Assets from Successor Agency to Successor Housing Agency and Removal of Two (2) Parkland Parcels from Former Redevelopment Agency Properties List subject to the revisions stated in the Exit RDA Memorandum & modified Exhibit A. PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of June, 2012, by the following vote: AYES: 5 MEMBERS: Rerig, Winick, Della Sala, Adamson, Potter NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Kuffner, Ma ABSTAIN: 0 MEMBERS: None PUBLIC COMMENTS No member of the public provided input. Public Comments closed. 4 MEMBER COMMENTS Board member Adamson stated that he does not understand some of staff’s presentation as thoroughly as he would like in order to become better educated with the information the Oversight Board is presented with. He suggested to Staff member Marvin that, if possible, he would like to set up an informal meeting with staff to go over and ask questions to become better informed. Board member Della Sala stated that these informal meetings could be done individually. Board Chair Rerig responded that he will contact all Board members and obtain an interest list and assist in setting up meetings with staff. ADJOURNMENT There being no further business, the meeting adjourned at 7:38 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 July 25, 2012 at 7:00 p.m. The remaining Oversight Board meetings are August 22, September 26, October 24 and November 28. All regularly scheduled meetings begin at 7 p.m at the City Council Chambers. There is no meeting for December due to holiday schedule. 5