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HomeMy WebLinkAbout05. Oversight Board Minutes - 02-21-13Minutes of the Oversight Board to the Successor Agency to the Dissolved Downey Community Development Commission February 21, 2013 – Regular Meeting The Oversight Board to the Successor Agency to the Dissolved Downey Community Development Commission held a Regular Meeting at 1:00 p.m., February 21, 2013, in the Council Chambers of Downey City Hall, 11111 Brookshire Avenue, Downey, California. PRESENT: Board Members: Brian Saeki, City of Downey – Chair Donald LaPlante, Downey Unified School District – Vice-Chair Roger C. Brossmer, LA County Sanitation Districts #2 & #18 Ali Delawalla, Community Colleges Jessica Flores, Downey Employee Association Frederick W. Latham, LA County Board of Supervisors, District 4 EXCUSED: Stephen W. Helvey, LA County Board of Supervisors, District 4 ALSO PRESENT: Ed Velasco, Housing Manager, City of Downey Adria M. Jimenez, Oversight Board Secretary 3. PLEDGE OF ALLEGIANCE The Flag Salute was led by Oversight Board Vice-Chair LaPlante. 4. PUBLIC COMMENTS Board Chair Saeki opened Public Comments. Having no one come forward Public Comments was closed. 5. APPROVE THE MINUTES OF THE OVERSIGHT BOARD FOR THE REGULAR MEETING OF DECEMBER 20, 2012; AND THE ADJOURNED REGULAR MEETING OF JANUARY 10, 2013. It was moved by Board Member Delawalla, seconded by Board Member Flores, and carried 5-0- 2, with Board Member Latham abstaining and Board Member Helvey excused, to approve the Minutes of December 20, 2012. It was moved by Board Member Delawalla, seconded by Board Member Flores, and carried 6-0- 1 with Board Member Helvey excused, to approve the Minutes of January 10, 2013. 6. ADOPTED RESOLUTION NO. OB 13-0014, A RESOLUTION OF THE OVERSIGHT BOARD TO THE DOWNEY SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JULY 1, 2013 THROUGH DECEMBER 31, 2013, PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 34177 AND 34180. Mr. Velasco provided the staff report and advised the Board that what is before them for consideration and approval is the ROPS for the period of July 1, 2013 through December 31, 2013. Approval authorizes Successor Agency staff to submit this to the appropriate agency. He advised that the total outstanding debt or obligations is $44.8 million, which is reflected on summary page one. He advised that it is recommended the agency request six months of funding, for a total of approximately $2,740,000. He stated all but one of items has been reported in prior ROPS. The staff report provides a summary on page two of the schedule which includes: tax allocation bonds, four development agreements; tax increment referred agreement with Los Angeles County; administrative allowance, including legal counsel, and all City loan agreements between the City and Agency. It is anticipated that the Downey Successor Agency will receive a Finding of Completion from the Department of Finance by June, 2013. After that time, staff will return to the Oversight Board for reconsideration of the City loans to the Redevelopment Agency including the terms of agreements, and resubmission to the Department of Finance to begin to receive payment. Board Member Brossmer asked if the relisting of City to Agency loan agreements, #9-17, listed on page 2 of the staff report, are new. Mr. Velasco advised the agreements are not new, however, they were not listed on ROPS 2 or ROPS 3. Board Member Latham asked if the Department of Finance has contested any of the development agreements. Mr. Velasco advised they have not. Board Member Latham asked what is the triggering mechanism for the County deferral agreement. Mr. Velasco advised the agreement allowed for the deferral of tax increment payments until such time that a certain level of tax increment was reached. There is no payment included in this ROPS for this agreement. Board Member Latham asked what happens if the triggering mechanism occurs. Is there an expectation that the County feels it is still an obligation to be paid? Chair Saeki stated that it is a hope by the County, but not expressed. We will ask to continue to reflect this agreement on the ROPS. Mr. Velasco advised they are going to be reviewing the agreements and if approved by the Oversight Board, it will automatically be approved. They will have the option of denying the approval of the agreements in the meet and confer process. Chair Saeki advised that under AB1484 there is a chance that these can be realized with the meet and confer process, and that the Finding of Completion should be received in June 2013. Board Member Latham asked what is the next action to be taken by this Board. Mr. Velasco advised that the Board will be asked to review and accept a Finding of Completion and then approve for submission the Long Range Property Management Plan. Board Member Latham asked if this will come to the Oversight Board. Mr. Velasco advised that any money turned over to them will be submitted to finalize the process. Chair Saeki advised this could be in June. Mr. Velasco advised that the estimated payments are built into ROPS. Vice-Chair LaPlante asked why the state has different positions on the loan agreements. Mr. Velasco explained that part of the legislation invalidated all Agency to City loans; a clean up of the legislation has provided another mechanism for Cities to recover the obligations. Mr. Velasco stated that the language dictates responsibility limits on interest that can be charged on the transactions. And that the Board may use its legal counsel to provide additional guidance. Board Member Latham stated it was his understanding that the City can recalculate interest earned retroactively. Chair Saeki stated that is correct with master loan agreements for legitimate expenses such as project and staffing costs. They are objecting to gross misuse of funds through master agreements. Board Member Latham asked in each case the information is coming back to this Oversight Board per the state. Mr. Velasco responded in the affirmative. It was moved by Board Member Brossmer, seconded by Board Member Latham and carried 6- 0-1, with Board Member Helvey excused, to adopt the resolution. 7. STAFF COMMENTS Mr. Velasco did not have any comments. 8. ADJOURNMENT The meeting adjourned at 1:20 p.m. ADRIA M. JIMENEZ, CMC BRIAN SAEKI Oversight Board Secretary Oversight Board Chair