HomeMy WebLinkAbout05c. OB Minutes of 02-27-14Minutes of the Oversight Board to the Successor Agency
to the Dissolved Downey Community Development Commission
February 27, 2014 — Special Meeting
The Oversight Board to the Successor Agency to the Dissolved Downey Community
Development Commission held a Special Meeting at 1:05 p.m., February 27, 2014, in the
Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California.
PRESENT:
Brian Saeki, City of Downey — Chair
Jessica Flores, Downey Employee Association
Frederick W. Latham, LA County Board of Supervisors, District 4
Donald LaPlante, Downey Unified School District — Vice -Chair
EXCUSED: Roger C. Brossmer, LA County Sanitation Districts #2 & #18
Ali Delawalla, Community Colleges
Stephen W. Helvey, LA County Board of Supervisors, District 4
ALSO PRESENT:
Adria M. Jimenez, Oversight Board Secretary
Ed Velasco, Housing Manager, City of Downey
3. PLEDGE OF ALLEGIANCE
The Flag Salute was led by Board Member Latham
4. PUBLIC COMMENT
Chair Saeki opened up Public Comment. Having no one come forward Public Comment was
closed.
5. APPROVE THE MINUTES OF THE OVERSIGHT BOARD OF OCTOBER 17, 2013.
The Minutes were tabled to the next Oversight Board Meeting.
6. ADOPTED RESOLUTION NO. OB 14 -0018, A RESOLUTION OF THE OVERSIGHT BOARD
TO THE DOWNEY SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2014, THROUGH DECEMBER 31,
2014.
Mr. Velasco stated before the Oversight Board for approval is the ROPS for the period of July 1,
2014 through December 31, 2014. One of the Oversight Board responsibilities is to review and
approve the ROPS submitted by the Successor Agency. The Successor Agency is requesting
approval for $1,387,383. There are five items in the ROPS: $470,218 for a bond payment due
in July; a development agreement with Bob's Big Boy that requires a $25,000 payment in
November; of $178,026 for an agreement with Champion Dodge Chrysler dealership; $125,000
for administrative expenses; and, a $589,138 request to pay off Operative Agreement No. 25,
which is a loan between the City and Redevelopment Agency. That last item was reviewed and
received approval from the Oversight Board to restate and amend the agreement. The
Department of Finance did approve that transaction. The Department of Finance provided a
template and guided worksheet where staff entered the numbers and calculated the maximum
payment that can go towards a City to Agency loan enforceable obligation.
Board Member Latham stated on other Oversight Boards this issue is somewhat significant. The
Department of Finance has directed, through its interpretation of legislation that Cities have to
repay their outstanding housing loans or other loans prior to repaying the City. Mr. Latham
asked if that is an issue in Downey.
Mr. Velasco stated it is a non -issue as no payments were made from the Housing Fund.
It was moved by Board Member Latham, seconded by Vice Chair LaPlante, and unanimously
carried with Board Members Brossmer, Helvey, and Delawalla excused.
7. RECEIVED AND FILED REPORT ON THE OUTSTANDING LOAN BALANCE FOR THE
RESTATED AND AMENDED LOAN AGREEMENTS.
Mr. Velasco stated in September Board Members raised questions regarding restated loan
agreements. The City's Finance Department hired a firm to conduct and prepare a fiscal audit
ending June 30, 2013. It was requested that the auditors review the SOI statements, and
confirm the actual dollar amount, the liability of the Successor Agency to Downey for the loans,
and also provide a detailed table of the loan balances, listed original amount of the loan and the
outstanding balance as of June 30, 2013, to coincide with the staff report presented in
September 2013. The auditors found that we underreported $300,000. We would like to return
to the Oversight Board at a later date and make amendments to present the $300,000 to add it
to the balance of the enforceable obligation. Mr. Velasco stated Board Members can reference
page 4 and page 12 of the staff report for information.
Mr. Velasco stated he is waiting for more direction from the Department of Finance for long -term
calculation for Agency to City loan payments. Staff is hoping it will be resolved before the next
ROPS is due, within the next six months.
Board Member Latham asked if those questions are in regards to the interest rates and how it is
applied.
Mr. Velasco stated the questions are regarding residual receipts within the next comparison
year, which is FY 14/15. We are comparing the base FY 12/13 with FY 13/14. That information
is based on residual receipts. When we apply the next payment of $583,000 it is going to
substantially reduced residual receipts for the next comparison year. The payment available to
the Successor Agency may be lower. We are trying to obtain clarification.
Board Member Latham confirmed it does not impact the obligation back to repay the City.
Mr. Velasco stated the amount available to the taxing entity will not be reduced; the City will
always get the amount received of the FY 12/13 base year.
This item was received and filed
8. STAFF COMMENTS: None.
9. ADJOURNMENT
Chair Saeki adjourned the Special Oversight Board Meeting at 1:16 p.m.
ADRIA M. JIMENEZ, CMC DONALD LAPLANTE
Oversight Board Secretary Oversight Board Chair