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MINUTES OF THE
CITY OF SAN RAMON – OVERSIGHT BOARD
December 3, 2012

A regular meeting of the Oversight Board of the City of San Ramon was held on
December 3, 2012 at 11:30 a.m. in the Main City Conference Room at 2226 Camino Ramon, Chair Richard Price presiding.
PRESENT:  Boardmembers Gary Black, Patricia Boom, Marc Fontes, Mary Lou Oliver, Scott Perkins, and Chair Richard Price.
ABSENT:  Boardmember John Nejedly.
STAFF PRESENT:  City Manager Greg Rogers, Board Attorney Craig Labadie, and Board Clerk Patricia Edwards.

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ANNOUNCEMENTS

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PUBLIC COMMENT

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APPROVAL OF MINUTES

(#5.1) Minutes of the October 26, 2012 regular meeting.

Mbr. Oliver’s motion to adopt the October 26, 2012 regular Oversight Board minutes was seconded by Mbr. Boom and passed 5-0-1-1.  Mbr. Nejedly was absent and Mbr. Perkins abstained. 

(#5.2) Minutes of the November 2, 2012 regular meeting.

Mbr. Black’s motion to adopt the November 2, 2012 regular Oversight Board minutes was seconded by Vice Chair Fontes and passed 5-0-1-1.  Mbr. Nejedly was absent and Mbr. Boom abstained.

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CONSENT CALENDAR

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UNFINISHED BUSINESS

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NEW BUSINESS

(#8.1) Resolution OB No. 2012-008 – Giving Direction to the Successor Agency Pertaining to the Disposition and Development Agreement for the Mudd's Property.

Legal Counsel Craig Labadie provided the report.  The Oversight Board (OB) must direct the Successor Agency (SA) to serve a written demand on Michael LeBlanc (Developer) in order to cure his default.   The Disposition and Development Agreement (DDA) provides that failure to submit satisfactory evidence of financing in a timely manner for the proposed project for the Mudd's Property constitutes a default.  This allows the SA to terminate the DDA if the default is not cured within thirty (30) days after the date of a written demand by the SA.  On February 24, 2012, Mr. LeBlanc sent a letter to the Redevelopment Agency requesting a 90-day extension for submitting the required evidence of project financing.  On March 27, 2012, the SA adopted Resolution SA 2012-004 referring the extension request to the OB for consideration. 

Mbr. Perkins asked whether the OB or SA has the lead responsibility regarding the Mudd’s property if Mr. LeBlanc does not submit a proposal.  Mr. Labadie stated that the SA owns the property and makes a recommendation to the OB regarding the disposition of the property.  AB 1484 allows the SA with the approval of the OB to prepare a long range property management plan which would allow the property to be retained for redevelopment purposes.  The management plan must be approved by the Department of Finance. 

Mbr. Oliver asked if there has been any communication with Mr. LeBlanc.  Vice Chair Fontes stated that he was in contact with Mr. LeBlanc several months ago and that he informed Mr. LeBlanc of the process but has not received a response from Mr. LeBlanc.  He noted that there has been ample time for a response.  Mr. Labadie stated that the process requires the SA to serve Mr. LeBlanc with a written demand to cure his default under the DDA within thirty (30) days.  If the default is not cured within thirty (30) days (with a possible extension of thirty (30) days in the reasonable discretion of the SA), the SA will notify Mr. LeBlanc that it is exercising its right to terminate the DDA in its entirety.  The letter to Mr. LeBlanc will allow flexibility if Mr. LeBlanc submits satisfactory evidence of financing.  Mbr. Perkins noted that the OB’s obligation is to maximize the profit of former Redevelopment assets.  If Mr. LeBlanc submitted information regarding new financing, the OB would discuss his response. 

Mbr. Oliver asked for information regarding the property management plan option.  Mr. Labadie stated that it would be necessary to assemble data for the property and to get approval from the Department of Finance.  The process would proceed from the SA to the OB and then to the Department of Finance.  AB 26 provides an option to sell assets.  Mbr. Oliver stated that the history of the property is for public use and asked if this would be considered a plan option.  Mr. Labadie responded that there are provisions for ‘governmental purpose’.  He noted that the property was purchased for park use but it was never used as such and there are no records that the property served a public use.

Mbr. Oliver asked if the City has adequate creek setbacks for the property.  City Manager Rogers stated that the property owner must comply with the City setbacks in the Zoning Ordinance.  Vice Chair Fontes asked if Mr. LeBlanc could submit a proposal for the property if the DDA is terminated and the property becomes available.  Mr. Labadie responded that he could.  Mbr. Oliver asked if a recent appraisal is available.  Vice Chair Fontes responded no and that the most recent appraisal was based on the land and not the building.  Mr. Labadie informed the OB that he received a letter from the Growing Room regarding a purchase option for the property.  Mbr. Boom noted that the OB could go through the process and that the state could decide against the OB’s decision.  Chair Price stated that the state’s interest is to maximize the financial gain.

Mbr. Perkins’ motion to approve Resolution OB No. 2012-008 was seconded by Mbr. Boom and passed 6-0-1-0.  Mbr. Nejedly was absent. 

Vice Chair Fontes asked for clarification on the process if proposals are received for the property.  Mr. Labadie stated that the SA has administrative responsibility to accept proposals and submit a recommendation to the OB. 

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Vice Chair Fontes thanked Chair Price for his role as OB Chair.  He noted that it is uncertain whether Chair Price can continue as the San Ramon Valley Fire Protection District representative after his retirement on December 31, 2012.  Mr. Labadie stated that Chair Price can continue with the Fire District Board’s approval.  A letter must be sent to the Board requesting that Chair Price continue in his role.  Mbr. Boom suggested that the letter include reference to Chair Price’s knowledge of the OB and the importance of continuity in the composition of the OB.

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ADJOURNMENT

At 11:54 a.m., there being no further business, Chair Price adjourned the meeting.


Richard Price, Chair
Patricia Edwards, Board Clerk

Approved at the January 10, 2013 Oversight Board meeting 4-0-2-0; Mbrs.Black and Nejedly absent.

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