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MINUTES OF THE
CITY OF SAN RAMON – OVERSIGHT BOARD
April 5, 2012

A regular meeting of the Successor Agency of the City of San Ramon was held April 5, 2012 at 4:00 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, City Manager Greg Rogers presiding.
PRESENT:  Boardmembers Marc Fontes, Kevin Horan, Mary Lou Oliver, Scott Perkins, and Richard Price.
ABSENT:  Boardmembers Gary Black and Patricia Boom.
STAFF PRESENT:  City Manager Greg Rogers, Administrative Services Director Eva Phelps, and Board Clerk Patricia Edwards.

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ANNOUNCEMENTS

The Board Clerk noted that there were no changes to the agenda. 

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PUBLIC COMMENT

The Board Clerk noted that there was one request for public comment.

Roz Rogoff, resident, stated that she supports Mbr. Perkins’ idea that the Oversight Board (OB) needs legal advice.  She expressed her interest in retaining the Mudd’s Property rather than proceeding with Michael LeBlanc’s plans for a restaurant on that site.  She believes that an attorney is required to guide the OB in any fuzzy areas.  She asked whether the County or the City needs to appoint someone.

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APPROVAL OF MINUTES

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CONSENT CALENDAR

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UNFINISHED BUSINESS

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NEW BUSINESS

(#7.1) Introductions and Election of Chairperson and Vice Chairperson.

City Manager Rogers stated that one of the first orders of business for the OB is to elect a Chair and Vice Chair.

Mbr. Perkins nominated Mbr. Price.  Mbr. Oliver seconded the motion.  One of the responsibilities of the Chair is to contact the County and state auditor regarding the actions taken by the OB.  Mbr. Price stated that Danville’s Finance Director not the Chair of Danville’s OB has that responsibility.  Danville thought that this was a more efficient system.  Mbr. Perkins stated that any OB requests would be passed on to the City Manager, Administrative Services Director, or Economic Development Director.  Mbr. Price asked if one of the public representatives to the OB would be better suited for the position of Chair.  Mbr. Oliver noted that he OB Chair needs access to the City’s Finance Department.  Mbr. Price indicated that he would accept the nomination if no one else on the OB was interested.  There was no further comment from the OB members.  The Board Clerk requested a voice vote.  The motion carried 5-0.

Chair Price requested nominations for the position of Vice Chair.  Mbr. Oliver nominated Mbr. Fontes.  The notion was seconded by Mbr. Perkins.  There was no further comment from the OB members.  The Board Clerk requested a voice vote.  The motion carried 5-0.

(#7.2) Resolution OB 2012-001 - Adopting Bylaws for the Oversight Board for the Successor Agency City of San Ramon

Chair Price requested information on how the OB Bylaws were formed.  City Manager Rogers stated that the Bylaws were prepared by Mbr. Fontes and Nicole Murphy, Murphy and Associates, and were reviewed for compliance with the law.  Mbr. Oliver asked if the Bylaws were approved by the state.  Mr. Rogers indicated that he was not sure if they were by the state but that it was a good business practice for organized bodies.  Mbr. Oliver requested an amendment to Section 11 to read “All business and matters before the San Ramon Oversight Board shall be transacted in conformance with the principles of Robert’s Rules of Order, most current edition.”  Mbr. Oliver’s motion to adopt Resolution OB 2012-001 as amended was seconded by Mbr. Perkins.   The Board Clerk requested a voice vote.  The motion carried 5-0.

(#7.3) Overview of AB1X26 and Role of Oversight Board

City Manager Rogers explained that this report provides additional information on the OB Bylaws, OB composition, and responsibilities.  The OB acts as a trustee to liquidate the assets of the former Redevelopment Agency and what to do with future Tax Increment funds.  He noted that the OB’s actions would be reviewed by the County auditor and the state Department of Finance.  Mbr. Oliver asked if the OB was ready to get into the actual financials.  Mbr. Horan asked if there was a sunset period for the OB.  Mr. Rogers stated that the OB is expected to sunset by April 2016.  Any remaining assets would then go to the County’s OB.

(#7.4A) Resolution OB 2012-002 – Adopting an Enforceable Obligations Payment Schedule in Accordance with Health and Safety Code Section 34177(a)

(#7.4B) Resolution OB 2012-003– Adopting Recognized Obligation Payment Schedules (ROPS) in accordance with Health and Safety Code Section 34177(l)

Chair Price asked if the difference between the two Schedules was the time periods: January to June 2012 and July to December 2012.  City Manager Rogers stated that it was the same obligation.  The Recognized Obligation Payment Schedules (ROPS) will become effective and be forwarded to the County for consideration.  The Enforceable Obligations Payment (EOPS) will be in the background.  Chair Price provided several options for consideration by the OB.  He noted that the OB’s action moves the process forward but that the ROPS can be modified if needed.  Mr. Rogers noted that the state Department of Finance and the County auditor will review the information.  Chair Price asked if the data which was assembled by staff should be reviewed by legal counsel.  Mr. Rogers stated that the City compiled the EOPS.  He referred the OB to the state Department of Finance’s March 2, 2012 letter.  Chair Price stated that he reviewed the document and added that it would be useful to have a non-San Ramon legal review.

Mbr. Perkins asked for if the “contract for legal services” on Exhibit 1 referred to the Successor Agency (SA) or to the OB.  Mr. Rogers responded that the funds are to help staff prepare information for the OB.  It is work related to handling the business of the SA.  The SA acts as ‘staff’ to the OB.  These funds are needed because continuing legislation may modify the rules under which the OB operates.  He stated that Bob Saxe is the legal counsel to the SA but not to the OB.  The City does not currently have an attorney to provide independent legal advice to the OB.  Mbr. Perkins asked if the OB would be required to amend the EOPS or ROPS to provide independent legal counsel to the OB.  As the County representative to the OB, he believes that he needs legal representation.  Chair Price suggested adding $25,000 to the ROPS.  Mbr. Perkins asked who would select the attorney.  Mr. Rogers suggested that assistance could be provided from City staff, the OB Chair, or its members.  Vice Chair Fontes noted that other counties have provided a RFP to provide counsel to the OBs.  Chair Price stated that the OB wants its own counsel whose duties will not conflict with the City or with the SA.

Mbr. Perkins made a motion that the OB amend the ROPS in the amount of $50,000 for EOPS and ROPS for the entire year and direct the Chair to work with SA staff to obtain legal services.  Mbr. Oliver seconded the motion.  Vice Chair Fontes suggested that the motion for Resolution OB 2012-003 be amended to provide $25,000 for outside legal counsel for the period of January through June 2012 and an additional $25,000 for the period of July through December 2012.  The amended motion passed 5-0.

Mbr. Oliver asked if money will be set aside to pay the bonds for the CAL HFA Help Loan (item 9) and the RDA Employee Costs (item 12).  Mr. Rogers responded that this is a future issue to be discussed.  Future state legislation may or may not require that the bonds be repaid.  He stated that, if needed, payment would be made to the Housing Authority (HA) as the follow-up mechanism is not in place.  Vice Chair Fontes stated that the clean-up legislation may dictate the need for additional OB meetings.  Mr. Rogers stated that 20% of the Redevelopment funding was designated for the property and assets of the low and moderate housing fund.  The HA assets are handled differently from the other Redevelopment assets.

Mbr. Perkins questioned the $250,000 allocated for SA administration.  Mr. Rogers explained that, per the legislation, the minimum administrative cost for a SA is $250,000.  The OB can request 5% for the first year and then 3% per year .  Administrative funds are only available to cover expenses related to the wind-down of the Redevelopment Agency.  Chair Price commented that this is very strange legislation.  Mr. Rogers explained that the legislation was poorly written and explained why San Ramon assumed responsibility as the SA.  He noted that there may be future clean-up legislation.  Chair Price requested that the legal counsel be selected and reviewed by Nicole Murphy.  He recommended that Resolutions 2012-002 and 2012-003 be adopted and modified if needed in the future.  The OB agreed.  Mbr. Perkins’ motion to adopt Resolution OB 2012-002 and 2012-003 as amended was seconded by Mbr. Horan and passed 5-0.

The Board Clerk informed OB members that they are required by the Fair Political Practices Commission to file Form 700 Statement of Economic Interests as 87200 category filers.  She distributed the relevant materials.

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ADJOURNMENT

At 4:57 p.m., there being no further business, Chair Price adjourned the meeting.

 

Richard Price, Chair
Patricia Edwards, Board Clerk

Approved at the May 24, 2012 Oversight Board meeting 4-0-1-2; Horan absent, Black and Boom abstained.

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