2013 02-20 OVERSIGHT BOARD NiINUTES
(TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPNlENT AGENCY)
February 20, 2013
City of Poway, City Hall,
Main Conference Room #2060, 2"d Floor,
13325 Civic Center Drive, Poway, CA 92064
CALL TO ORDER
The meeting was called to order at 8:31 a.m.
CHAIR: Bruce Tarzy, MD, City of Poway
VICE CHAIR: Lois Fong-Sakai, County Board of Supervisors
BOARD MEMBER: Phyllis Laderman, Palomar Community College District
BOARD MEMBER: Jim Lyon, City of Poway (former RDA employee)
BOARD NIEMBER: Tom Scott, County Board of Supervisors
BOARD MEMBER: Malliga Tholandi, San Diego County Board of Education
Absent:
BOARD MEMBER: David Tam, MD, Palomar Health
Other Attendees:
Penny Riley, City Manager, City of Poway; Tina White, Assistant City Manager, City
of Poway; Kristen M. Crane, Interim City Clerk, City of Poway; Scott Edwards,
Director of Administrative Services, City of Poway; Andrew White, Finance Manager,
City of Poway; Ashley Jones, Senior Management Analyst, City of Poway.
PU�LIC COfiA�iIENT
None.
BOAFtD BUSBNESS
1. Approval of the January 15, 2013 Regular I�eeting i�iinutes of the Overs�ght
Board to the Successor�4gency of the Powr�y Rec9eveloprnent Agency.
Motion by Board Member Lyon, seconded by Board �/iember Scott, to approve
minutes. IViotion carried unanimously by those present with Board Member Tam
absent.
2. Revie�r and Approve the Recognized Obligation Payrv�ent Schedule (FtOPS) foP
the Perioc9 from July 1, 2013 through Decerr�ber 31, 2013.
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Oversight Board t�liinutes — February 20, 2013
Director of Administrative Services Edwards provided an overview of this item and
reviewed the exhibits included in the packet, explaining that the State of California is
using a new electronic file format, which includes locked cells for items previously
disallowed by the State that the City of Poway is unable to edit.
Chair Tarzy inquired if there are any new disallowances. Staff explained there are
not, though some additional new expenses are included (items previously not
included on ROPS I).
Board Member Tholandi inquired whether the lease for City Hall office space is a new
expense. City Manager Riley explained that although it is new to the ROPS
schedule, the Redevelopment Agency historically paid to lease space in City Hall.
Director of Administrative Services Edwards proceeded to explain the Reconciliation
of ROPS II, which reconciles actual expenses for July 1 — December 31, 2012, with
previously reported projected obligations.
Board Member Scott inquired about whether the Low-Moderate Income Housing
Fund still exists and what will happen to obligations previously paid for by that Fund.
Finance Manager White explained that the Fund does not exist going forward. Staff
explained that any expenses disallowed by the State will need to be funded by the
City's General Fund.
Board Member Lyon inquired about the variance between estimated costs and actual.
Staff explained that timing is a critical factor. Some expenses projected for the ROPS
July 1 — December 31, 2012 period did not occur in that period (based on project
timing). Another factor is the need to forecast expenses to allow for adequate cash
flow to meet debt service payments. Additionally, any expenses not projected on the
ROPS will not be reimbursed.
Chair Tarzy inquired if the distribution of monies to the taxing entities by the County
occurs on a regular schedule. Assistant City Manager White explained that
distributions to the taxing entities are supposed to be made twice annually on
January 2"d and June 1 St
Director of Administrative Services Edwards also presented the projected
Administrative Budget for the Successor Agency for July 1 — December 31, 2013,
which must be approved by the Oversight Board and submitted to the County
Auditor-Controller. State law establishes an annual (per fiscal year) minimum
administrative cost allowance of $250,000, as well as a maximum that is equal to 3%
of the ROPS amount. The proposed administrative budget for the Successor Agency
to the Poway Redevelopment Agency for this period totals $280,982 (which
represents only a fraction of the actual costs that will be incurred).
Board Member Lyon inquired about the City's future financial outlook relevant to the
loss of redevelopment. City IVlanager Riley explained that while there will be no
funding for new redevelopment projects (due to a projected loss of approximately $40
million), over time, there is expected to be more funding for City operations (several
million dollars annually).
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Oversight Board 9�inutes — February 20, 2013
Motion by Board Member Scott, seconded by Board Member Lyon, to adopt
Resolution No. OSB 13-002, approving the Administrative Budget and the
Recognized Obligation Payment Schedule (ROPS) for the period from July 1, 2013
through December 31, 2013. Motion carried unanimously by those present with
Board Member Tam absent.
CHAIR AND BOARDMEIVIBERS' COiVINiEIVTS
Chair Tarzy commented that while there is no regularly scheduled Oversight Board
Meeting until September 18, 2013, it is expected that there will be at least one meeting
during the summer to discuss the long range property management plan.
Chair Tarzy also reminded Oversight Board Members that Form 700 Conflict of Interest
Statements are due to the City Clerk's Office by March 11, 2013.
ADJOURNMENT
The meeting was adjourned at 9:20 a.m.
Sheil R. Cobian,
City Clerk
City of Poway, California
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