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.
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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.
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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.
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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.
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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
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