HomeMy WebLinkAbout05. Special Meeting Minutes - 02-25-15Oversight Board Minutes – February 25, 2014 - 1 -
Minutes of the Oversight Board to the Successor Agency
to the Dissolved Downey Community Development Commission
February 25, 2015 – Special Meeting
The Oversight Board to the Successor Agency to the Dissolved Downey Community
Development Commission held a Special Meeting at 1:34 p.m., February 25, 2015, in the
Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California.
PRESENT:
Donald LaPlante, Downey Unified School District - Chair
Aldo Schindler, Community Development Director – Vice-Chair
Ali Delawalla, Community Colleges
Jessica Flores, Downey Employee Association
Stephen W. Helvey, LA County Board of Supervisors, District 4
EXCUSED:
Roger C. Brossmer, LA County Sanitation Districts #2 & #18
Frederick W. Latham, LA County Board of Supervisors, District 4
ALSO PRESENT:
Adria M. Jimenez, CMC, Oversight Board Secretary
Ed Velasco, Housing Manager, City of Downey
3. PLEDGE OF ALLEGIANCE
The Flag Salute was led by Board Member Helvey.
4. PUBLIC COMMENT
Chair LaPlante opened Public Comment. Having no one come forward, Public Comment was
closed.
5. APPROVE THE MINUTES OF THE OVERSIGHT BOARD FOR THE MEETING OF
SEPTEMBER 18, 2014: Secretary.
It was moved by Vice-Chair Schindler, seconded by Board Member Helvey and carried
5-0-2 with Board Members Brossmer and Latham excused, to approve the Minutes.
6. ADOPTED RESOLUTION NO. OB 15-0022, A RESOLUTION OF THE OVERSIGHT BOARD
TO THE DOWNEY SUCCESSOR AGENCY APPROVING THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2015 THROUGH DECEMBER 31,
2015.
Mr. Velasco provided an overview of the Recognized Obligation Payment Schedule (ROPS),
which covers the applicable six month period of July through December 2015. In this ROPS,
the Successor Agency requested $785,888 from the Redevelopment Property Tax Trust Fund
(RPTTF), for Downey Oversight Board and Department of Finance (DOF) approved enforceable
obligations, to cover the following four items: 1) the tax allocation bond payment in the amount
$481,391; 2) the Bob’s Big Boy Development Agreement with a payment of $25,000; 3) the
Champion Dodge Dealership Development Agreement with a projected payment of $80,000;
and, 4) $125,000 for Administrative allowance for the first six month period to cover the
Successor Agency’s administrative, consulting, legal counsel, etc. Mr. Velasco further reported
that the last items on the ROPS pertain to the City Loan Agreements. The Successor Agency is
allowed to repay loans made to the Redevelopment Agency by the City of Downey once the
Agreements have been reinstated and have gone through the approval process. Mr. Velasco,
stated that the process has been completed and the Successor Agency had received an
Oversight Board Minutes – February 25, 2014 - 2 -
approval letter from DOF which confirmed DOF’s approval of the submitted City Loans as
enforceable obligations. The ROPS includes $74,579 towards payment of loan principle for
Loan Agreement No. 25. Mr. Velasco reported that the balance on this loan was $1,010,000
and noted that the ROPS must be submitted to DOF by March 3rd.
Chair LaPlante asked why certain loan agreements are highlighted in red. Board Member
Helvey responded noting the Agency is not making a payment towards those loans.
Mr. Velasco advised the Board that the requested funds on the fourth requested line item on the
ROPS will go towards paying the first loan on the list of unpaid City loans. He restated that DOF
had approved each of the City loans listed on the ROPS worksheet. He indicated that there is a
legislative statute which limits how much can be requested for loan repayment in any 12 month
period. He stated that only $74,000 can be drawn from the Trust Fund.
Board Member Helvey reference the Los Angeles County’s $22 million enforceable obligation
that is listed in the ROPS and had received DOF approval. He asked why they are not
receiving a payment.
Mr. Velasco responded that the Agency’s priority was to first repay each of the City loans and
then pay the County’s enforceable obligation.
Board Member Helvey commented on the three items following line Item No. 17 regarding
changes. Mr. Velasco stated that Agency’s auditors had found that loan items Nos. 27, 30, and
37 had been paid off and the ROPS reflects the necessary audited adjustments. Board Member
Helvey asked if it is fair to say there are no new items requesting funding. Mr. Velasco
responded in the affirmative. Mr. Velasco advised that the availability of RPTTF funds for
repayment of the City loans will vary each fiscal year and is expected to increase and decrease
substantially from one fiscal year to the next. He provided and example, stating that last fiscal
year the Successor Agency received $589,000 from the statutory formula, as compared to the
maximum of $74,000 it will get for the current fiscal year.
It was moved by Board Member Helvey, seconded by Vice-Chair Schindler and carried, 5-0-2
with Board Members Brossmer and Latham excused, to adopt the Resolution.
ADJOURNMENT
Chair LaPlante adjourned the meeting at 1:46 p.m.
ADRIA M. JIMENEZ, CMC DONALD LAPLANTE
Oversight Board Secretary Oversight Board Chair