Oversight Board Meeting

MINUTES OVERSIGHT BOARD MEETING ANNUAL MEETING Wednesday, November 28, 2012 – 7-9 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members Present: Chip Rerig, Charles Della Sala, Michael Adamson, Stephen Ma, David Potter Absent: Harvey Kuffner and Mitchel Winick City Staff Present: Finance Director Don Rhoads, Housing and Property Manager Rick Marvin, Legal Counsel Richard Glenn, and Clerk to Board, Maria Buell. CALL TO ORDER Chair Rerig called the meeting to order at 7:00 PM. APPROVAL OF MINUTES 1. Minutes of the October 10, 2012 Special Meeting. The Minutes of the October 10, 2012 meeting were approved by the following vote: ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 28th day of November, 2012, by the following vote: AYES: 4 MEMBERS: Rerig, Adamson, Ma, Potter NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Kuffner, Winick ABSTAIN: 1 MEMBERS: Della Sala PUBLIC APPEARANCE 2. Election of Chair and Vice Chair Staff Presentation/Board Member Questions Chair Rerig reminded Board about the election of officers every year at the Annual Board meeting. Board Comments: Member Adamson asked if Vice Chair and Chair could be re-elected. Chair Rerig said that according to the By-laws they could be re-elected. Board member Ma asked if the term to hold office was defined as a calendar year. The By-laws establish term as “until the next annual meeting” and allow officers to be re-elected but for no more than two consecutive terms. Member 1 Potter said he has no problem with existing leadership and recommended that Chair Rerig and Vice Chair Winick be re-elected. Member Della Sala asked that it should be conditioned on Mr. Winick’s acceptance of this re-appointment. Chair Rerig said to complete the Vice-Chair election Mr. Winick would have to first accept reappointment. Clerk Buell was requested to notify Mr. Winick accordingly. 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 member Potter, seconded by member Adamson, the Board unanimously moved to approve the re-election of Chair Rerig and Vice-Chair Winick, provided Mr. Winick accepted reappointment for the calendar year 2013. ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 28th day of November, 2012, by the following vote: AYES: 5 MEMBERS: Della Sala, Rerig, Adamson, Ma, Potter NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Kuffner, Winick ABSTAIN: 0 MEMBERS: None 3. Receive a Report on Proposed Schedule to Approve Second Due Diligence Review for Other Funds and Accounts Staff Presentation/Board Member Questions. Staff member Marvin presented the informational report, which included recommendation to authorize a Special Meeting on December 19, 2012 to receive report on Second Due Diligence Review. Staff member Marvin and Finance Director Rhoads answered Board member questions. Board Comments Chair Rerig reminded the Board that a quorum is necessary for the December 19th meeting and he advised that it will be held at a different location than the Council Chambers. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 4. Receive a Report on Successor Agency Meet and Confer Requests Staff Presentation/Board Member Questions. Staff member Marvin presented the informational report and stated the subject line of the staff report that was included in the Agenda packet contained an error. Finance Director Rhoads clarified that the Department of Finance (DOF) disallowed the $2M proceeds from the sale of City- owned Ocean Harbor House condominiums as an enforceable obligation. The DOF decision if it stands will prevent the transfer of the funds to the housing successor agency and its use to fund affordable housing programs or projects. Board member questions: Board member Ma asked if the $2M to replace the housing units is also a state-wide issue. Finance Director Rhoads said he believes other RDAs in the State are in similar situations and that Cities can have an enforceable obligation by having a contract but also one can be attained under “state law”. The DOF analysts had advised staff that this issue has come up already and that DOF attorneys are checking into the question. Board member Adamson asked if Oversight 2 Board has the ability to appeal decisions by the DOF thru a higher authority. Finance Director Rhoads said that DOF is the final authority with legal proceedings to follow. M. Rhoads asked if OB Counsel would provide additional comment on the question. Member Della Sala asked if it would be the Supreme Court. OB Counsel, Mr. Glenn, indicated that any action by the Successor Agency challenging such a DOF finding under the Dissolution Act would have to be through a petition for writ of mandate in the Sacramento County Superior Court. Mr. Rhoads stated that if the $2M is found not to be an enforceable obligation, City would request the determination in writing. Mr. Rhoads said he expects a decision by December 15th and he will review DOF’s rationale. Board Comments: Chair Rerig asked Marvin to provide details on the five housing asset transfers identified in the informational report that have also been denied by DOF Marvin stated that they include three housing units located at 565 English Avenue, a 1-bedroom unit at 300 Glenwood Circle; and a 3- bedroom unit at 595 English Avenue. Marvin explained that RDA housing funds were used to purchase these units but the units were deeded to City of Monterey and not the RDA. The DOF has initially declined to consider the units as RDA housing units or appropriate for transfer to the successor housing agency. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. PUBLIC COMMENTS No member of the public provided input. Public Comments was closed. OTHER BUSINESS 5. No Regularly Scheduled Meeting in December due to Christmas Holiday Chair Rerig thanked Board members for their vote of confidence as Chair of Board. He reminded them about the By-Laws Attendance section regarding unexcused absences and the provision that Board members are excused only if Chair is notified of their absence in advance of the meetings. Chair Rerig added that the 2013 regular meeting schedule would be released shortly. Board member Potter requested that this schedule be sent to his assistant, Kathleen. Clerk Buell was asked by Chair Rerig to send 2013 calendar to all board members with announcement of Special meetings. MEMBER COMMENTS No member comments. ADJOURNMENT There being no further business, the meeting adjourned at 7:30 PM. Respectfully Submitted, Approved, _______________________ _______________________ Maria Buell Chip Rerig Clerk, Oversight Board Chair, Oversight Board The Oversight Board will hold a Special Meeting on December 19, 2012 at 7:00 p.m. 3