Oversight Board Meeting

MINUTES OVERSIGHT BOARD MEETING Wednesday, November 27, 2013 – 4-6 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Oversight Board Members: Present: Mitch Winick, Michael Adamson, Chuck Della Sala, Harvey Kuffner Absent: Dave Potter, Chip Rerig City Staff Present: Housing and Property Manager Rick Marvin, Assistant Finance Director, Julie Porter, and Secretary to Board, Maria Buell. Attorney Alex Lorca is present representing De Lay & Laredo law firm. CALL TO ORDER Vice Chair Winick called the meeting to order at 4:00 PM. 1. Swearing in Vicki Nakamura to Oversight Board New Board member Vicki Nakamura took the Oath of Allegiance and was welcomed by the Board members. APPROVAL OF MINUTES 2. The Minutes of the September 25, 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 27th day of November, 2013 by the following vote: AYES: 4 MEMBERS: Winick, Adamson, Kuffner, Della Sala NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Rerig, Potter ABSTAIN: 1 MEMBERS: Nakamura PUBLIC APPEARANCE. 3. Election of Chair and Vice Chair Staff Presentation/Board Member Questions Staff member, Marvin introduced this item and answered Board members questions. Vice Chair Winick states that due to our Bylaws, neither Mr. Rerig nor Mr. Winick can continue to hold officer titles. Board member Kuffner for the position of Chair and Board member Adamson for the position of Vice Chair of the Board were nominated. Public Comments: Vice Chair Winick opened discussion to members of public on this item. Having no requests to speak, 1 Mr. Winick closed public comment. Board member comments: Both members Kuffner and Adamson accepted the nominations for the respective officer positions on the Board. On a motion by Board member Winick, seconded by Board member Della Sala, the Board unanimously moved to approve the nominations. ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 27th day of November, 2013 by the following vote: AYES: 5 MEMBERS: Winick, Adamson, Nakamura, Kuffner, Della Sala NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Rerig, Potter ABSTAIN: 0 MEMBERS: None Immediate past Vice Chair Winick, handed the gavel over to Mr. Kuffner. Chair Kuffner resumes the meeting. 4. Appoint the Firm of De Lay & Laredo, Attorneys at Law, as Legal Counsel to the Oversight Board as Recommended by the Chair's Ad Hoc Committee Board member Winick stated that the Ad Hoc committee met to review the Letters of Interest due to Mr. Glenn’s resignation as legal counsel. He indicated that the Ad Hoc committee determined that De Lay & Laredo is the most qualified law firm to provide legal advice to the Board. The Ad Hoc committee recommends selection of De Lay & Laredo. Chair Kuffner said he was a member of the Ad Hoc committee and he agreed with the selection. Public Comments: Chair Kuffner opened discussion to members of public on this item. Having no requests to speak, Chair Kuffner closed public comment. On a motion by Board member Adamson, seconded by Board member Winick, the Board unanimously moved to accept the recommendation of the Ad Hoc committee and approve the appointment of the Firm of De Lay & Laredo, Attorneys at Law, as Legal Counsel to the Oversight Board. ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 27th day of November, 2013 by the following vote: AYES: 5 MEMBERS: Kuffner, Adamson, Winick, Della Sala, Nakamura NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Potter, Rerig ABSTAIN: 0 MEMBERS: None Chair Kuffner asked for a quick introduction of the Firm. Alex Lorca, representing De Lay & Laredo provided a brief description of the firm and legal services they provide. 2 5. Receive Report on Department of Finance Concurrence with Transfer of Former RDA; properties Osio Plaza Walkway, Custom House Walkway, Spanish Plaza and 5 Custom House Plaza to the City of Monterey as Governmental Purpose Properties Staff Presentation/Board Member Questions Staff member Marvin introduced this item and answered Board member questions. He identified the properties that had been proposed for transfer to the City. He indicated that Department of Finance (DOF) confirmed the transfers were consistent with Health and Safety Code (HSC) requirements. Mr. Marvin further indicated that the City Council is scheduled to accept the transfers at their December 3, 2013 meeting. Acceptance of the transfers by the City would mean that all properties, with the exception of the Hotel Pacific, identified as owned by or leased by the Redevelopment Agency of the City of Monterey will have been transferred to City of Monterey. Chair Kuffner commented that staff worked very hard to present this information to DOF. Staff member Marvin said that Oversight Board provided guidance as to the documentation and approach taken with DOF. Public Comments: Chair Kuffner opened discussion to members of public on this item. Having no requests to speak, Chair Kuffner closed public comment. 6. Receive Report on Long Range Property Management Plan and Confirm Acceptance of Broker's Opinion of Value to Estimate Asset Value Staff Presentation/Board Member Questions Staff member Marvin introduced this item and answered Board member questions. Staff asked for confirmation as to the approach to be taken to determine an estimate of value for the Hotel Pacific property. The Hotel Pacific property is the only property remaining under the control of Successor Agency. This is also the only property subject to a long range property management plan. Since the Successor Agency is to work its way out of business as it unwinds the activities of the former redevelopment agency, the Hotel Pacific property must be disposed in some manner. Mr. Marvin indicated that staff believes the Hotel Pacific property qualifies as a government property and that it will meet the “government purpose” qualification for transfer to the City of Monterey. Mr. Marvin indicated that additional information needed to be gathered regarding the Hotel Pacific to satisfy HSC requirements for the Long Range Property Management Plan (LRPMP). Mr. Marvin indicated that March 10th is the deadline to submit the LRPMP to the State. In order to complete the plan, an estimate of current value of the Hotel Pacific property is needed. To gain this estimate Mr. Marvin proposed to use a Broker’s Opinion of Value Letter as opposed to an appraisal. The difference would be the cost of the value estimate, which is estimated to involve a savings in the range of $7-$8K over the cost of an appraisal. Mr. Marvin indicated that staff has confirmed that the State does not require an appraisal and that is why staff is pursuing a Broker’s Opinion of Value Letter. Mr. Marvin indicated that the Broker’s Opinion of Value Letter would need to be adequately supported by the Broker and include appropriate backup information. Mr. Marvin said that an RFP went out and the deadline for submittals is December 6th. Once the value is determined, the Oversight Board will be provided this information as part of the recommended LRPMP. Staff is asking for approval from Oversight Board for concurrence that a Broker’s Opinion of Value will be acceptable method to determine an estimate of value. Board member comments: Board Della Sala asked if there would be any difference in impact to the City due to a low value determination or a high value determination. Mr. Marvin responded that the value determination is 3 probably most important to the taxing entities since any proceeds from a sale, if it becomes necessary to be sold, would be distributed to the taxing entities. Mr. Marvin indicated that staff will present supporting documentation in the LRPMP that will, he believes, justify transfer of the property to the City of Monterey as “governmental purpose” because the rental proceeds are required to fund eligible Community Development Block Grant funding (CDBG) activities in the City. Chair Kuffner stated that the ground lease expires sometime in 2058 and asked if these lease arrangements will continue to provide funds to CDBG programs. Staff member Marvin said that lease revenues are by agreement only to be used for purposes eligible for CDBG funding. Board member Winick asked if the Opinion Letter would be completed faster as opposed to an appraisal. Mr. Marvin confirmed that an opinion of value can be completed more quickly than an appraisal. Chair Kuffner said that if an appraisal were needed, would another RFP have to be done. Staff member Marvin confirmed this. Chair Kuffner asked if this item required a vote? Mr. Lorca stated that a vote would be needed to confirm concurrence with the Broker’s Opinion of Value determination. Public Comments: Chair Kuffner opened discussion to members of public on this item. Having no requests to speak, Chair Kuffner closed public comment. On a motion by Board member Winick, seconded by Board member Adamson, the Board unanimously moved to accept Staff’s recommendation to Accept a Broker's Opinion of Value to Estimate Hotel Pacific. ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY this 27th day of November, 2013 by the following vote: AYES: 5 MEMBERS: Winick, Adamson, Della Sala, Nakamura, Kuffner NOES: 0 MEMBERS: None ABSENT: 2 MEMBERS: Potter, Rerig ABSTAIN: 0 MEMBERS: None 7. Receive Report on ROPS 13-14B Meet and Confer Staff Presentation/Board Member Questions Julie Porter introduced this item and answered Board member questions. Ms. Porter said the Oversight Board approved this item in September. The Department of Finance (DOF) response was that Monterey Hotel use of the $1.3M was not approved for funding during this time period. This item has been included in all previous ROPS. Ms. Porter indicated that staff met with DOF on November 22nd to reiterate to DOF the City’s analysis of the ROPS and the administrative expenditures. A response is due from DOF on December 17th. Board member comments: Board Chair Kuffner asked if Staff waits until December 17th has Staff negotiated with a Contractor? Staff member Marvin said that a Call for Bids will have to be done on those construction documents and that Staff is working on this. PUBLIC COMMENTS Chair Kuffner opened discussion to members of public on this item. Attorney Ralph Thompson of The Thompson Law Office expressed his appreciation to the Board for the opportunity to provide legal counsel. Having no additional requests to speak, Chair Kuffner closed public comment. 4  OTHER BUSINESS 8. Next Regularly Scheduled Meeting December 18, 2013 Staff Marvin reminded OB about the December meeting and stated that there are no scheduled items for review and that the Board would be notified of any Cancellation. BOARD MEMBER COMMENTS None. ADJOURNMENT There being no further business, the meeting adjourned at 4:37 PM. Respectfully submitted, Approved, _______________________ _______________________ Maria Buell Harvey Kuffner Secretary, Oversight Board Chair, Oversight Board 5