Loading...
2014 02-26OVERSIGHT BOARD MINUTES (TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY) February 26, 2014 City of Poway, City Hall Main Conference Room #2060, 2nd Floor 13325 Civic Center Drive, Poway, CA 92064 CALL TO ORDER The Meeting was called to order at 8:30 a.m. ROLL CALL Present were: CHAIR: Bruce Tarzy, MD, City of Poway VICE CHAIR: Lois Fong- Sakai, County Board of Supervisors BOARD MEMBER: Jim Lyon, City of Poway (former RDA employee) BOARD MEMBER: Tom Scott, County Board of Supervisors (arrived at.8:35 a.m BOARD MEMBER: David Tam, MD, Palomar Health Absent: BOARD MEMBER: Phyllis Laderman, Palomar Community College District BOARD MEMBER: Malliga Tholandi, San Diego County Board of Education Other Attendees: Tina White, Interim Executive Director, City of Poway; Sheila R. Cobian, Secretary, City of Poway; Scott Edwards, Director of Administrative Services, City of Poway; Jay Virata, Economic Development Manager, City of Poway; Andrew White, Finance Manager, City of Poway; Ashley Jones, Senior Management Analyst, City of Poway. PUBLIC COMMENT None. BOARD BUSINESS 1. Approval of the October 9, 2013, Special Meeting Minutes of the Oversight Board to the Successor Agency of the Poway Redevelopment Agency. Motion by Chair Tarzy, seconded by Vice Chair Fong -Sakai approving the October 9, 2013, Special Meeting Minutes of the Oversight Board to the Successor Agency of the Poway Redevelopment Agency. Motion carried unanimously. 0034 Oversight Board Minutes — February 26, 2014 The Board concurred to have staff present Agenda Item No. 4 prior to the rest of the agenda. 4. Former Redevelopment Agency Loan Repayment. Interim Executive Director Tina White gave a brief overview of the item for the Board's consideration and introduced Director of Administrative Services Scott Edwards to present the report. Director Edwards explained that the purpose of the loans from the City to the Agency were for cash -flow needs and project specific funding of the Redevelopment Plan. He further explained that with the dissolution of the Agency and in order for the loans to be considered recognized obligations, the Oversight Board would need to adopt Resolutions finding that the loans were for legitimate redevelopment purposes and authorize the loan repayments to be included on future Recognized Obligation Payment Schedules (ROPS). Executive Director White pointed out that separate Resolutions were prepared for each loan so that in the event the Department of Finance rejects the legitimacy of any of the loans, the Oversight Board can at least move forward with the others. Board Member Tam confirmed with staff that the Oversight Board is being asked to make "findings" that the loans made to the Redevelopment Agency were for legitimate redevelopment purposes based on the laws that were applicable at the time the loans were made. Chair Tarzy stated that the funding source for many of the loans were the water, sewer and drainage funds. Executive Director White explained that sometimes due to the timing of a project it would make sense for the Agency to seek a loan from the City for the expense rather than issue bonds. She further explained that staff would strategically review the internal loans on a cash flow basis and that the intent was to always repay the loans in the final years of the Redevelopment Agency. Board Member Lyon confirmed with staff that redevelopment tax increment could only be used to repay debt. In response to Chair Tarzy, Director Edwards confirmed that two of the loans for the Board's consideration were for the purpose of property acquisitions and that the properties are still in the City's inventory. Executive Director White explained that if the properties are sold the cash would be on hand for payment of the ROPS. Chair Tarzy commented that the funds held for payment of the ROPS will ultimately go back to each of the taxing agencies. 0035 Oversight Board Minutes — February 26, 2014 Board Member Tam asked who prepared the original loan documents and interpreted the Redevelopment Law at the time the loans were issued. Director Edwards explained that staff along with consultants prepared the necessary loan documentation. Board Member Lyon asked if there is a possibility that the State could question whether the loans were necessary even if the Board approves the Resolutions. Executive Director White stated that the possibility exists. In response to an inquiry from Vice Chair Fong- Sakai, Executive Director White explained that if the State determines the loans were not legitimate, the loans would not be repaid to the City's internal funds. Chair Tarzy stated that staff confirmed that he can vote on two of the Resolutions for consideration even though he was a Councilmember when the original loans were approved by the City Council. It does not represent a conflict. Board Member Tam asked if it is expected the Board would vote on the Resolutions today. Chair Tarzy stated that the Resolutions would be returned for consideration at a later date. In response to Board Member Scott, Director Edwards confirmed that staff has provided all documentation regarding the issuance and repayments of the loans. Chair Tarzy commented that the Board is tasked with approving the Resolutions stating that the loans were for legitimate public purposes as outlined in the Redevelopment Plan. The Board requested additional time to review the documentation and to allow the two Board Members who were unable to attend today's meeting the opportunity to meet with staff regarding the agenda item. In response to an inquiry from Chair Tarzy, Executive Director White explained that staff would like to include the repayment of the loans on the September 24, 2014 ROPS if possible. Vice Chair Fong -Sakai confirmed that in the event the Board was unable to definitively say a loan was for legitimate purposes, the Resolution would be voted on separately and if not approved, the loan would be written off. 0036 Oversight Board Minutes — February 26, 2014 The Board concurred to continue the item for further discussion to a Special Meeting in April. The Secretary was directed to poll the Board Members to determine the best date for optimum attendance. 2. Redevelopment Property Tax Trust Fund Residual Payments to All Taxing Entities. Executive Director White gave an overview of the agenda report and explained that the attachment to the Report represents revenue received by the taxing entities. In response to Board Member Lyon, Executive Director White explained that the one- time funds being returned to the City will be placed in a Capital Facility Fund established by the City Council. She further explained that staff has begun a dialogue with the City Council and Budget Review Committee regarding the establishment of a policy on how the future additional property tax increment received by the City should be used. Chair Tarzy confirmed with staff that in the past two years $46 million has been paid to the taxing entities. In conclusion, Chair Tarzy requested that staff provide this type of report to the Board on an annual basis. The Board accepted and filed the Schedule of Redevelopment Property Tax Trust Fund Residual Distribution Payments to All Taxing Entities (RPTTF Distribution Schedule). 3. Review and Approve the Recognized Obligation Payment Schedule (ROPS) 14- 15A and FY 14 -15A Administrative Budget for the period from July 1, 2014 through December 31, 2014. Director Edwards presented the agenda report. He commented that the State has implemented a new format for the ROPS that reconciles actual activity reconciled with anticipated activity for prior ROPS reports. Motion by Board Member Scott, Seconded by Board Member Lyon to adopt Resolution OSB 14 -001 entitled, "A Resolution of the Oversight Board to the Successor Agency of the Poway Redevelopment Agency Approving the Recognized Obligation Payment Schedule (ROPS) and the Administrative Budgets for the Period from July 1, 2014 through December 31, 2014." Motion carried unanimously. 0037 Oversight Board Minutes — February 26, 2014 5. Approval of the Third Amendment to the Lease Agreement for 13033 Poway Road (Poway Stoway). Senior Management Analyst Ashley Jones gave a brief overview of the report and the terms of the lease. Chair Tarzy confirmed that by having a short term lease, the Agency has the ability to sell the property unencumbered. Motion by Vice Chair Fong- Sakai, seconded by Board Member Lyon adopting a Resolution entitled, "A Resolution of the Oversight Board to the Successor Agency of the Poway Redevelopment Agency Authorizing the Third Amendment to the Lease Agreement with Desert Oasis Industrial Lofts, LLC "; and, authorizing the Interim Executive Director to Execute the Agreement. Motion carried unanimously. CHAIR AND BOARDMEMBERS' COMMENTS Board Member Lyon complimented staff on the presentations and the information provided. Chair Tarzy asked if staff knows when the Long Range Property Management Plan might be approved by the State. Executive Director White stated that it could be up to a year. ADJOURNMENT The meeting was adjourned at 10:17 a.m. IS Sheila R. Cobian, CMC Secretary Oversight Board to the Successor Agency of the Poway Redevelopment Agency 0038