Oversight Board Meeting

MINUTES OVERSIGHT BOARD MEETING Wednesday, August 7, 2013 – 6-8 p.m. ORCA Conference Room 735 Pacific Street MONTEREY, CALIFORNIA Oversight Board Members Present: Chip Rerig, Mitch Winick, Chuck Della Sala, Harvey Kuffner Michael Adamson, Dave Potter Absent: Stephen Ma City Staff Present: Housing and Property Manager Rick Marvin, Julie Porter, Assistant Finance Director, Legal Counsel Richard Glenn, and Secretary to Board, Maria Buell. CALL TO ORDER Chair Rerig called the meeting to order at 6:00 PM. APPROVAL OF MINUTES 1. The Minutes of the July 24, 2013 meeting were approved by the following vote: ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 7th day of August, 2013 by the following vote: vote: AYES: 4 MEMBERS: Rerig, Winick, Adamson, Potter NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Ma, Kuffner ABSTAIN: 1 MEMBERS: Della Sala Board member Kuffner arrived at 6:05 p.m. PUBLIC APPEARANCE 2. Approve the Amended Due Diligence Review for Non-Housing Fund and Account Balances of the Former Redevelopment Agency of the City of Monterey in Accordance with Health and Safety Code Section 34179.5 and Taking Certain Other Actions in Connection Therewith Staff Presentation/Board Member Questions Assistant Finance Director, Julie Porter introduced this item and answered Board member questions. Ms. Porter provided a power point presentation and stated that on August 2nd the Department of Finance (DOF) reversed their determinations made on June 26th and this lowered the amount due for remittance. She indicated that as a result of the revised DOF determination, the recommended resolution included with the staff report has been revised to show the final correct amount to be remitted to the County Auditor Controller as $4,441,141. Ms. Porter presented the revised resolution and she requested board approval. Ms. Porter further stated that that to-date, City has distributed a total of approximately $9.8 million dollars to taxing entities. 1 Board member questions. Board Della Sala asked what would happen to City if there was no money to remit to the taxing entities. Ms. Porter said possibly our sales taxes would be withheld. Public Comments: Chair Rerig opened discussion to members of public on this item. Having no requests to speak, Chair Rerig closed public comment. On a motion by Board member Della Sala, seconded by Board member Kuffner , the Board unanimously moved to Approve the Amended Due Diligence Review for Non-Housing Fund and Account Balances of the Former Redevelopment Agency of the City of Monterey in Accordance with Health and Safety Code Section 34179.5 and Taking Certain Other Actions in Connection Therewith. ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 7th day of August, 2013 by the following vote: vote: AYES: 6 MEMBERS: Rerig, Winick, Adamson, Kuffner, Potter, Della Sala NOES: 0 MEMBERS: None ABSENT: 1 MEMBERS: Ma ABSTAIN: 0 MEMBERS: None 3. State Department of Finance Approved Successor Agency's Transfer of Five Affordable Low and Moderate-Income Housing Units to the Successor Housing Agency (oral report) Staff Presentation/Board Member Questions Staff member Rick Marvin provided an oral report and answered Board member questions. Mr. Marvin said DOF challenged City regarding 5 transferred properties classified as affordable housing. On August 2nd City received DOF’s response confirming that the 5 disputed properties are allowed to be transferred to the City as Successor Housing Agency. Mr. Marvin indicated that going forward Successor Housing Agency’s money can now be used to do repairs and prepare the housing units for resale to qualified low and moderate-income households. Board member Della Sala asked if there are any properties in limbo at this point. Staff member Marvin responded that one is still in question. That property is the Hotel Pacific, which was recently added to the list of former RDA properties transferred to the Successor Agency. Mr. Marvin indicated that staff expects the Hotel Pacific to be the only property subject to the Long Range Property Management Plan (Plan). Mr. Marvin believes this property will be eligible to be transferred to the City for a variety of reasons. Mr. Marvin stated that the Board will review the Plan and that Plan review should be the last remaining significant task for the Board excluding periodic approval of ROPS expenditures. Ms. Porter advised the Board that the next ROPS will be due in October and that Board review will most probably be scheduled for the September regular meeting. The next ROPS will be review of the administrative costs budget for the next six months. Board member Della Sala asked for the timeline for the approval of Monterey Hotel. Staff member Marvin estimated that the timelime is to gain a Certificate of Completion, 6 months to resolve the ownership issue and complete the plans; and up to a year to complete. Board member Winick asked if Board is getting to the point where the regular meeting schedule can be modified. Staff member Marvin said that board meetings could be scheduled at greater intervals. Mr. Marvin said the regular August meeting may not be needed since there are no items for OB review. The next regular meeting is scheduled for September 25th. 2 Legal Counsel said that if we have a property ready for Oversight Board approval, then Board could review it in October. Staff member Marvin said that since the Successor Agency has the obligation for the Monterey Hotel apartments, if the obligations funds are spent, then that transaction needs to be reported to the Oversight Board in order to approve the release of funds. Legal Counsel stated that it might become necessary to have a meeting in September. Staff member Marvin stated the regular scheduled meeting for August would be cancelled if staff can confirm that there are no items ready for Board action. He added that the Board should plan on meeting again either on September or October. 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 None. BOARD MEMBER COMMENTS None. ADJOURNMENT There being no further business, the meeting adjourned at 6:15 PM. Respectfully submitted, Approved, _______________________ _______________________ Maria Buell Chip Rerig Secretary, Oversight Board Chair, Oversight Board 3