HomeMy WebLinkAbout05. Minutes-OB-Special Meeting 01-25-16Oversight Board Minutes
Special Meeting January 25, 2016 - 1 -
Minutes of the Oversight Board to the Successor Agency
to the Dissolved Downey Community Development Commission
January 25, 2016 – Special Meeting
The Oversight Board to the Successor Agency to the Dissolved Downey Community
Development Commission held a Special Meeting at 1:00 p.m., January 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
Dave Blumenthal, Downey Employee Association
Ali Delawalla, Community Colleges (arrived at 1:08 p.m.)
Frederick W. Latham, LA County Board of Supervisors, District 4
EXCUSED:
Stephen W. Helvey, LA County Board of Supervisors, District 4
ALSO PRESENT:
Adria M. Jimenez, MMC, Oversight Board Secretary
Jessica Flores, Economic Development Manager, City of Downey
3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Board Member Latham.
4. PUBLIC COMMENT
Chair LaPlante opened Public Comment at 1:01 p.m. Having no one come forward, Public
Comment was closed.
5. ELECTION OF CHAIR AND VICE CHAIR
Vice-Chair Schindler advised this is the time to select the Chair and Vice-Chair for the upcoming
term. Vice-Chair Schindler suggested the Board approve the election of Chair and Vice-Chair
to a 2-year term ending in 2018, at which time the Board will dissolve. All Members agreed.
The Board unanimously elected Donald LaPlante as Chair; Aldo Schindler as Vice-Chair for a
period of 2 years.
6. APPROVED THE MINUTES OF THE OVERSIGHT BOARD FOR THE REGULAR MEETING
OF SEPTEMBER 17, 2015: Secretary.
It was moved by Board Member Brossmer, seconded by Board Member Latham and
unanimously carried 4-0-2 with Board Member Blumenthal abstaining and Board Member
Helvey excused to approve the Minutes of the Regular Meeting of September 17, 2015.
7. ADOPTED RESOLUTION NO. OB 16-0025, A RESOLUTION OF THE OVERSIGHT BOARD
TO THE DOWNEY SUCCESOR AGENCY APPROVING THE RECOGNIZED OBLIGATION
PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE 30, 2017:
Community Development.
Oversight Board Minutes
Special Meeting January 25, 2016 - 2 -
Ms. Flores provided an overview of the Recognized Obligation Payment Schedule (ROPS),
which covers the applicable six month period of July 2016 through June 2017. The Successor
Agency is requesting approval of $1,649,486 for enforceable obligations due in the applicable
one-year period. 1997 Tax Allocation Bonds - there are two debt payments in the amount of
$488,109 and $144,525 required for the next two scheduled bond payments due in August and
January. The payment obligation was established by the Commission in 1997 when it issued
$9,925,000 in Refunding Tax Allocation Bonds to decrease an outstanding balance on its 1990
Bonds to repay accrued principal and interest on note obligations to the City. The current
balance is $5,640,000.
In regards to Development Agreements, this ROPS includes $71,743 for payments which are
due on two agreements that were recognized as enforceable obligations: Bob’s Big Boy and
Champion Dodge. In November a $25,000 payment is due for the Bob’s Big Boy agreement
with the current unpaid obligation balance of $125,000. In regards to Champion Dodge, the
remaining balance is $46,743. This ROPS includes $46,743 for the estimated payment due in
September of this year.
Administrative costs are also included in this ROPS for a total of $250,000, which are used for
personnel salaries and benefits, legal services, contract and professional services.
This ROPS also includes $439,531 for a loan payment towards the outstanding principal on City
Loan Agreement No. 25. The outstanding principal on this loan as of January 2016 is
$1,012.277.
The Successor Agency is responsible or continuing payment to CALPERS for unfunded pension
obligations for Commission employees in service prior to the dissolution of redevelopment. The
total of $253,078 is included in this ROPS for that payment.
Lastly, the Successor Agency is responsible to complying with the requirements of the 1997 Tax
Allocation Bonds by providing Annual Disclosure Reports every year. In order to maintain
compliance with disclosure requirements, staff has procured consultant services to generate the
required report. The cost to prepare the reports is project at $50,000 over the remaining 20
year term of the tax allocation bonds. This ROPS included $2,500 for the preparation of these
reports.
It was moved by Board Member Brossmer, seconded by Board Member Latham, and approved
5-0-1, with Board Member Helvey excused, to Adopt Resolution No. OB 16-0025, A Resolution
of the Oversight Board of the Downey Successor Agency Approving the Recognized Obligation
Payment Schedule for the Period of July 1, 2016, through June 30, 2017.
ADJOURNMENT
Chair LaPlante adjourned the meeting at 1:46 p.m.
ADRIA M. JIMENEZ, MMC DONALD LAPLANTE
Oversight Board Secretary Oversight Board Chair