Oversight Board Meeting

MINUTES OVERSIGHT BOARD MEETING Wednesday, September 25, 2013 – 7-9 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members: Present: Chip Rerig, Mitch Winick, Stephen Ma, Michael Adamson Absent: Dave Potter, Chuck Della Sala, Harvey Kuffner City Staff Present: Housing and Property Manager Rick Marvin, Assistant Finance Director, Julie Porter, Legal Counsel Richard Glenn, and Secretary to Board, Maria Buell. CALL TO ORDER Chair Rerig called the meeting to order at 7:01 PM. APPROVAL OF MINUTES 1. The Minutes of the August 7, 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 25th day of September, 2013 by the following vote: AYES: 3 MEMBERS: Rerig, Winick, Adamson NOES: 0 MEMBERS: None ABSENT: 3 MEMBERS: Della Sala, Potter, Kuffner ABSTAIN: 1 MEMBERS: Ma Legal Counsel notes that Mr. Ma’s attendance at the meeting counts for the purpose of establishing the meeting quorum and passing of the minutes. PUBLIC APPEARANCE 2. Approval of the Recognized Obligation Payment Schedule for the Period January 1, 2014 through June 30, 2014. Staff Presentation/Board Member Questions Assistant Finance Director, Julie Porter, introduced this item and answered Board members questions. Ms. Porter said that the proposed Recognized Obligation Payment Schedule (ROPS) covers the period of January 1 thru June 30, 2014. A ROPS needs to be adopted every 6 months. The six items listed need to remain in ROPS even though some were denied by Department of Finance. Staff member Marvin said that the City council authorized staff to pursue ownership of the low-income housing (apartment) portion of that Monterey Hotel Project. He said City is working to complete the apartment project separate from the hotel. Mr. Marvin indicated that staff is moving forward to prepare construction documents to go out for bid. Mr. Marvin said the Board will need to provide approvals for the monies that will be drawn down as the apartment project moves forward to completion. 1 Board member questions. Board member Ma asked about the 2 placeholders on the List and asked if Staff is going to continue to negotiate with DOF. He also asked Ms. Porter the purpose of these placeholders. Ms. Porter said that DOF requires this numbering to remain on the spreadsheet even though they were denied by DOF. Chair Rerig asked what is the difference between the $1.2 million to remain in ROPS and the amount that has been paid back to the State for distribution to taxing entities estimated to be at $10M. Mr. Rerig also asked if the amount returned to the taxing entities shows up on ROPS. Ms. Porter said the amounts returned to taxing entities are receipts received from tax increments and that the total amount paid to tax agencies would not show up on the ROPS. 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 Ma, seconded by Board member Winick, the Board unanimously moved to Approve the Recognized Obligation Payment Schedule for the Period January 1, 2014 through June 30, 2014. ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 25th day of September, 2013 by the following vote: AYES: 4 MEMBERS: Rerig, Winick, Adamson, Ma NOES: 0 MEMBERS: None ABSENT: 3 MEMBERS: Potter, Della Sala, Kuffner ABSTAIN: 0 MEMBERS: None 3. Approval of the Proposed Administrative Budget for the January 1, 2014 through June 30, 2014 period Pursuant to Health and Safety Code Section 34177(j) Staff Presentation/Board Member Questions Assistant Finance Director, Julie Porter introduced this item and answered Board member questions. She said the Administrative budget of $125,000 is allocated for administration and operating expenses and is part of ROPS item No. 2 and recommends approval from the Board. Ms. Porter provided amounts paid over the last 2 ROPS. The prior ROPS’s amounts were not fully expended and they had to be returned to the State. She anticipates that the $250K is needed in order to wind down the prior RDA and property management plan expenses which will require legal and appraisal services. Board member Winick asked if $2,000 went over the budget what was the source for payment. Ms. Porter said it is absorbed by the City. Mr. Winick asked if there is any way to recuperate these monies not spent in prior ROPS. Ms. Porter did not know of any provisions in completion of the ROPS, but said she will check if the City may recover them. 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 Ma, seconded by Board member Adamson, the Board unanimously moved to approve the Proposed Administrative Budget for the January 1, 2014 through June 30, 2014 period Pursuant to Health and Safety Code Section 34177(j). 2 ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 25th day of September, 2013 by the following vote: AYES: 4 MEMBERS: Rerig, Winick, Adamson, Ma NOES: 0 MEMBERS: None ABSENT: 3 MEMBERS: Potter, Della Sala, Kuffner ABSTAIN: 0 MEMBERS: None PUBLIC COMMENTS No member of the public provided input. Public Comments was closed. OTHER BUSINESS 4. No Identified Items at this Time for Next Regularly Scheduled October 23, 2013 Meeting According to Chair Rerig there are no items that need to be reviewed by Board in October. Staff member Marvin said that they would wait a couple of weeks to see if staff identifies any items that will need the review and approval of the Board at the October 23, 2013 meeting, but that at this time no items were expected. Otherwise, he anticipated the October meeting will be cancelled. BOARD MEMBER COMMENTS Board member Ma stated this is his last meeting as a member of the Oversight Board. He complimented staff for their incredible work. Mr. Ma said he serves on other Boards and, comparatively speaking, all the material he reviews from OB staff is excellent. Vicki Nakamura will be his replacement. Ms. Nakamura is the Monterey Peninsula College President’s Assistant and serves on other Oversight Boards as well. Mr. Ma said she will be a good addition to the Board and looks forward to stepping down. Chip Rerig read a plaque presented to Mr. Ma in appreciation for his valuable input and time commitment to the Oversight Board. The Board wished Mr. Ma lots of success in his professional development. ADJOURNMENT There being no further business, the meeting adjourned at 7:17 PM. Respectfully submitted, Approved, _______________________ _______________________ Maria Buell Harvey Kuffner Secretary, Oversight Board Chair, Oversight Board 3