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September 18, 2012

A regular meeting of the Oversight Board of the City of San Ramon was held on
September 18, 2012 at 4:03 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Chair Richard Price presiding.
PRESENT:  Boardmembers Gary Black, Patricia Boom (late), Marc Fontes, Mary Lou Oliver, and Chair Richard Price.
ABSENT:  Boardmembers Kevin Horan, Scott Perkins.
STAFF PRESENT:  City Manager Greg Rogers and Board Clerk Patricia Edwards.

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Chair Price led those present in the pledge of allegiance. 

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(#5.1) Minutes of the August 13, 2012 regular meeting.

Mbr. Oliver’s motion to adopt the August 13, 2012 regular Oversight Board minutes was seconded by Vice Chair Fontes and passed 5-0-2-0.  Mbrs. Horan and Perkins were absent.

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(#8.1) Resolution OB No. 2012-006 – Selecting Mr. Craig Labadie to Provide Legal Services to the Oversight Board in Accordance with the Provisions of Health and Safety Code Section 34179(n).

City Manager Greg Rogers provided the report.  Members of the Oversight Board (OB) had previously discussed the need to obtain its own legal services because of the OB’s unique role.  California Health and Safety Code Section 34179(n) in the 2012 Budget Trailer Bill (AB 1484) provides that the OB may direct the Successor Agency (SA) to obtain legal counsel for the Board.  The OB appointed Chair Price and Vice Chair Fontes to interview attorneys and provide a recommendation to the full Board.  A Request for Proposals (RFP) was distributed and the four proposals were received. The Chair and Vice Chair reviewed the proposals and selected two firms to interview.  Based upon the review of the proposals and the interviews, the Chair and Vice Chair recommend that the OB select Craig Labadie to provide legal services to the OB.  Mr. Labadie has 30 years of experience in municipal law and redevelopment law.  His experience working for other OBs involves advising them on property disposition and other related issues.

Mbr. Oliver’s motion to adopt Resolution No. OB 2012-006 was seconded by Mbr. Black and passed 5-0-2-0.  Mbrs. Horan and Perkins were absent.

(#8.2) Discussion by Oversight Board to Develop Procedures for Disposal of the Mudd’s Property.

The staff report was given by City Manager Greg Rogers.  The City has a City Attorney who works for San Ramon and the Successor Agency (SA) to the former Redevelopment Agency.  The City Attorney cannot represent both the SA and the OB as it would be a conflict of interest.  The OB has a unique role and requires its own legal representation.   Mr. Rogers requested that the OB provide direction to the OB attorney regarding the disposal of the Mudd’s property. 

Chair Price opened public comment. Roz Rogoff, resident, asked for legal advice regarding California Code 34177(e) which she interprets as an “escape clause” for the Mudd’s property.  Section 34177(e) states that: “Dispose of assets and properties of the former redevelopment agency as directed by the oversight board; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of certain assets pursuant to subdivision (a) ofSection 34181.”  Section 34181(a) states that: “Dispose of all assets and properties of the former redevelopment agency; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose such as roads, school buildings, parks, police and fire stations, libraries, and local agency administrative buildings, to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset.”  She stated that the 2008 Mudd’s purchase agreement described using the building as part of Crow Canyon Gardens and as a nature center.  The 1996 Crow Canyon Specific Plan stipulated the inclusion of a 1,100 square foot building to be used as offices and a nature center.  She referenced a letter written by former Parks and Community Services Director Jeff Eorio describing using Mudd’s instead of constructing a new building.  She asked the OB to have the attorney determine if the Mudd’s property falls under this exemption.  Mudd’s is an important building in the history of San Ramon and the development of green building techniques.  She asked the OB to save the building and use it as part of the park which was the original intention when it was purchased. 

Chair Price stated that the OB needs a complete historical document review of Mudd’s.  Mr. Labadie agreed that it would be helpful to have this information prior to advising the OB regarding its options under the Redevelopment Dissolution law and the Budget Trailer bill.  Vice Chair Fontes stated that there are two major documents relating to Mudd’s: the City’s purchase of the property and the Disposition and Development Agreement.  He referred Mr. Labadie to the City’s former Redevelopment Agency attorney.  Chief Price noted that once a baseline is established, the process can go forward.  Mbr. Boom stated that there are standard procedures for the dissolution of property.  Mr. Labadie stated that the OB has not adopted any procedures regarding property disposition.  Mbrs. Boom and Oliver stated that Mudd’s was unique to the times.  Chair Price recommended that Mr. Labadie prepare the baseline and present it so that the OB can decide how to proceed on this property.

Vice Chair Fontes informed the OB that it is required to meet twice before October 15, 2012 to review the Successor Agency’s Due Diligence Review.  This requirement is part of the clean-up legislation.  Five business days must elapse between the meeting at which the OB conducts a public review of the Review and the meeting at which it considers adopting the Review. 

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At 4:23 p.m., there being no further business, Chair Price adjourned the meeting.

Richard Price, Chair
Patricia Edwards, Board Clerk

Approved at the October 26, 2012 Oversight Board meeting 5-0-1-1; Mbr. Boom absent, Mbr. Nejedly abstain.

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