Oversight Board Meeting

MINUTES OVERSIGHT BOARD MEETING Wednesday, February 27, 2013 – 7-9 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members Present: Chip Rerig, Mitch Winick, Harvey Kuffner, Michael Adamson, Stephen Ma Chuck Della Sala, Dave Potter Absent: None City Staff Present: Finance Director Don Rhoads, City Attorney Christine Davi, Julie Porter, Assistant Finance Director, Housing and Property Manager Rick Marvin, Legal Counsel Richard Glenn, and Secretary to Board, Maria Buell. CALL TO ORDER Chair Rerig called the meeting to order at 7:00 PM. APPROVAL OF MINUTES 1. The Minutes of the January 23, 2013 meeting were approved by the following vote: ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of February 2013, by the following vote: AYES: 6 MEMBERS: Rerig, Winick, Adamson, Ma, Kuffner, Potter NOES: 0 MEMBERS: None ABSENT: 0 MEMBERS: None ABSTAIN: 1 MEMBERS: Della Sala PUBLIC APPEARANCE 2. Approval of the Recognized Obligation Payment Schedule for the period July 1, 2013 through December 31, 2013. Staff Presentation/Board Member Questions Assistant Finance Director Porter presented the staff report and answered board member questions. Board member Kuffner asked for an accounting of the items spent on 2012. Ms. Porter presented a spreadsheet breaking down these costs. Board member Ma asked if the legal services of Counsel Glenn are included and wanted clarification for the RDA retirement fund. Member Kuffner expressed the same concerns. Ms. Porter confirmed that the accounting includes Counsel Glenn’s services and clarified that the RDA retirement fund is the name for this budget, which is specific to the unwinding of RDA activities and it is not referring to RDA employee retirement. 1 Chair Rerig asked Counsel Glenn to go over the revisions to the proposed resolution. Mr. Glenn said the authority to SA staff is in modifying the ROPS documents and that Counsel Glenn should be delegated the authority to make minor changes to documents which are being submitted to the State. Chair Rerig asked if the board was clear as to what is delegated of Counsel and if there were any questions. City Attorney Davi had no objections to the proposed revisions by Counsel Glenn. Staff member Marvin was asked for the origin of the resolution format. Mr. Marvin responded it is a template staff developed for Oversight Board resolutions, it is based on City of Monterey resolutions and changes and/or adjustments will be made so that the style and language presented by Counsel Glenn is incorporated for future use. MOTION: On a motion by Board member Kuffner, seconded by Board member Potter, the Board unanimously moved to approve the Resolution as revised by Counsel Glenn for Approval of the Recognized Obligation Payment Schedule for the period July 1, 2013 through December 31, 2013. PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of February, 2013, by the following vote: AYES: 7 MEMBERS: Rerig, Winick, Ma, Kuffner, Adamson, Della Sala, Potter NOES: 0 MEMBERS: None ABSENT: 0 MEMBERS: None ABSTAIN: 0 MEMBERS: None Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 3. Approval of Proposed Administrative Budget for the July 1 through December 31, 2013 period Pursuant to Health and Safety Code Section 34177(j). Staff Presentation/Board Member Questions Assistant Finance Director Porter presented the staff report and answered board member questions. The Board had no questions for Ms. Porter. Chair Rerig asked Counsel Glenn about the revised Resolution he provided the Board at the dais. Counsel Glenn indicated that the revisions clarified the Health and Safety code sections that authorized the action and that the $125K budget was added to the heading because he recommends it to be good practice to clearly designate approved budget amounts in the Resolutions. Board member Adamson asked if it is normal to have a fixed amount with no cost of living adjustments. Counsel Glenn agrees that it is unusual not to have cost of living adjustments but that the fixed amount without cost of living adjustments is what has been authorized in the Dissolution Act. MOTION: On a motion by Board member Della Sala, seconded by Board member Potter, the Board unanimously moved to approve the resolution as revised by Counsel Glenn for the Approval of Proposed Administrative Budget for the July 1 through December 31, 2013 period Pursuant to Health and Safety Code Section 34177(j). 2 PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of February, 2013, by the following vote: AYES: 7 MEMBERS: Rerig, Winick, Ma, Kuffner, Adamson, Della Sala, Potter NOES: 0 MEMBERS: None ABSENT: 0 MEMBERS: None ABSTAIN: 0 MEMBERS: None Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 4. Notice of Proposed Oversight Board Bylaws Amendment Re: Member Absences Occasioned by Conflicting Public Agency Meeting Obligations. Staff Presentation/Board Member Questions Staff member Marvin presented the staff report and answered board member questions about the proposed amendment to the Bylaws, Section 10, Unexcused Absences. Counsel Glenn provided a brief analysis of the proposed Bylaw amendment and the problem that the amendment was intended to resolve, which is the probability that board member commitments to participate in other public meetings related to their elected duties could prevent attendance at Oversight Board meetings, result in multiple absences and pursuant to current Bylaws require removal from the Board. Board member Ma stated that the proposed changes are good and appreciates that other board members were publically elected and have many commitments. However, he is not a publically elected official, but he has other public agency’s commitments and asked if the language could be modified to address a broader range of potential meeting conflicts. Board member Potter said this was a good question and agreed that broadening this language is justifiable. Counsel Glenn stated the language can be broadened. Chair Rerig said a more liberal policy can be added to deal with absences and suggested that this matter should be continued and have staff provide the standard notice to the public. Board member Winick seconds the idea to make it simple and decide what total absences over the total period can be allowed since each board member represents a different constituency. Board member Kuffner said that the board should not put itself in a box since a separate agency appointed a board member to the Oversight Board. He liked the simplicity and inclusiveness in the Section. Counsel Glenn said it is a number of absences issue and simplifying the language would be the correct course to take. Chair Rerig and Counsel Glenn suggested they would work together to revise amendment language. Board member Della Sala stated that if a board member misses more than 50% of meetings, that member would be in trouble. Board member Potter said that unless a serious medical issue comes up, then this could become a problem and asked if some discretion could be given to the Chair for approval of absences. Board member Kuffner believes that the idea of having the Chair having some discretion is very useful. Board member Potter moved and Board member Kuffner seconded a motion to continue this item with direction to staff to bring it back at a later time for review and approval. Board member Winick said that consecutive absences have an impact on the function of a board member and asked if Board can approve this now and also temporarily suspend it until a new one is done. 3 Counsel Glenn said that if a motion to suspend Section 10 in view of intended amendment, then a substitution to the motion, to rescind this Bylaw amendment is needed. Board member Potter withdrew the first motion and Board member Kuffner agreed to withdrawal. Public Comments: Chair Rerig opened discussion to members of public on this item. Maxwell Green, a citizen of Monterey, concurred with the Board and said that the definition of unexcused absence needs more work on language. He said that allowing more days of absences might not be good because Board can lose track of business. Having no additional requests to speak, Chair Rerig closed public comment. MOTION: On a motion by Board member Potter, seconded by Board member Kuffner, the Board unanimously moved to Continuing Consideration of a Proposed Bylaws Amendment and Suspending Application of Oversight Board Bylaws Article III, Section 10 Re: Unexcused Absences Pending Conclusion of such Consideration. PASSED AND ADOPTED BY THE OVERSIGHT BOARD TO THE CITY OF MONTEREY SUCCESSOR AGENCY this 27th day of February, 2013, by the following vote: AYES: 7 MEMBERS: Rerig, Winick, Ma, Kuffner, Adamson, Della Sala, Potter NOES: 0 MEMBERS: None ABSENT: 0 MEMBERS: None ABSTAIN: 0 MEMBERS: None PUBLIC COMMENTS No member of the public provided input. Public Comments closed. OTHER BUSINESS 5. Receive Oral Report on February 4, 2013 City of Monterey Housing Successor Agency's Meet and Confer Meeting. Staff Presentation/Board Member Questions Staff member Marvin said his Meet and Confer meeting with Department of Finance (DOF) took place on February 4, 2013. DOF questioned 5 properties transferred as Low & Moderate Income housing because they were bought with RDA funds, but not deeded to RDA. Mr. Marvin indicated that it had been the intent of the City at the meeting to demonstrate the funds were RDA funds and that the properties were purchased for the express purpose of retaining them in the Low & Moderate Income housing. Staff is waiting for DOF to make a decision by end of February. Mr. Marvin indicated that he was hopeful that DOF will agree with the City position that the properties are housing assets; otherwise they go back to Successor Agency where they will need to be addressed in the long-range property management plan for final disposition. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. 4 Board member Della Sala asked if the City or Agency would maintain control of these units. Staff member Marvin said that DOF might conclude that they must be transferred to the Successor Agency for disposition through the Long Range Property Management Plan; and if that is the case, staff will need to evaluate the best process to establish them as government purpose low mod housing units eligible for transfer to the City of Monterey. BOARD MEMBER COMMENTS Chair Rerig announced he will be absent for the meeting in March. There were no comments from the public or the Board. ADJOURNMENT There being no further business, the meeting adjourned at 7:48 PM. Respectfully Submitted, Approved, _______________________ _______________________ Maria Buell Chip Rerig Secretary Oversight Board Chair, Oversight Board Next Oversight Board meeting is scheduled for March 27, 2013, at 7:00 PM at the Council Chamber, Few Memorial Hall of Records. 5