MINUTES OF THE
CITY OF SAN RAMON – OVERSIGHT BOARD
September 11, 2013
A regular meeting of the Oversight Board of the City of San Ramon was held on
September 11, 2013 at 4:01 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Chair Marc Fontes presiding.
PRESENT: Boardmembers Gary Black, John Nejedly (late), Scott Perkins, Matt Stamey, Vice Chair Mary Lou Oliver, and Chair Marc Fontes.
ABSENT: Boardmember Patricia Boom.
STAFF PRESENT: City Manager Greg Rogers, Board Legal Counsel Craig Labadie, Administrative Services Director Eva Phelps, Special Projects Manager Patricia Perry, and Board Clerk Patricia Edwards.
PLEDGE OF ALLEGIANCE
Mbr. Perkins led those present in the pledge of allegiance.
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APPROVAL OF MINUTES
(#5.1) Minutes of the February 21, 2013 regular meeting.
Vice Chair Mary Lou Oliver’s motion to adopt the February 21, 2013 regular Oversight Board minutes was seconded by Mbr. Stamey and passed 4-0-1-2. Mbr. Boom was absent and Mbrs. Nejedly and Perkins abstained.
(#5.2) Minutes of the February 27, 2013 regular meeting.
Vice Chair Mary Lou Oliver’s motion to adopt the February 27, 2013 regular Oversight Board minutes was seconded by Mbr. Black and passed 5-0-1-1. Mbr. Boom was absent and Mbr. Perkins abstained.
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(#8.1) Resolution OB No. 2013-004 – Adopting a Recognized Obligation Payment Schedule for the Period January 1, 2014 through June 30, 2014 in Accordance with Health and Safety Code Section 34177(l) and (m).
Administrative Services Director Eva Phelps provided the report. She stated that the proposed Recognized Obligation Payment Schedule (ROPS) information is similar to previous ROPS. Previous lists of obligations included all the debt of the Redevelopment Agency. In May, the Department of Finance granted a Finding of Completion in which the Successor Agency (SA) can now utilize unspent bond proceeds for Capital Improvement Projects and Housing Projects. The ROPS includes three new items: the housing activity; Capital Improvement Program projects; and the cost for preparing the Long Range Property Management Plan. Once approved, the ROPS will be submitted to the Department of Finance for final approval.
Chair Fontes noted that the unspent bond proceeds, housing funds, and a description of how these funds were spent will be standard items for future ROPS. Ms. Phelps stated that any leftover proceeds will roll over to the next year. She added that the new format includes reporting of fund balance. Chair Fontes asked if the Finding of Completion means that housing funds and remaining bonds funds can continue to be utilized with the approval by the SA or the Oversight Board (OB). Board Legal Counsel Craig Labadie stated that once the Finding of Completion was received, the SA and OB are authorized to expend unencumbered housing and non-housing bond proceeds for purposes consistent with the original bond covenants. Ms. Phelps stated that the projects were included as one lump sum to be approved by the Department of Finance. Mr. Labadie stated that the Department of Finance may ask for detail on the use of non-housing funds because it has limited oversight authority for the use of those funds. Chair Fontes noted that the State does not have much say regarding the use of non-housing bond proceeds provided they are spent in accordance with the bond documents. Mr. Labadie stated that, if there are not enough projects to be funded consistent with the bond covenants, the OB would be obligated to determine if they could defease the bonds with any remaining funds. He anticipates that the Department of Finance would approve the expenditure for other projects provided they are consistent with the bond covenants. Ms. Phelps stated that these are all ongoing and not new Capital Improvement Program projects. Mbr. Stamey confirmed that there are no new projects. Mbr. Perkins asked how many more years will the ROPS be submitted. Ms. Phelps responded that, until the process is turned over to the County, ROPS will be submitted until the debt is paid off which is expected to be 2030 or 2032. Mr. Labadie stated that the law provides that there will be no individual OB for each former Redevelopment Agency after July 1, 2016 and there will be only one county-wide Board. The county-wide Board will continue to approve the expenditures until all of the bonds are retired. Mbr. Perkins remarked that the OB needs to expend the bond proceeds by 2016 or it becomes a county oversight activity. Ms. Phelps stated that the Engineering Department anticipates that the Capital Improvement Projects will be completed at the end of the fiscal year.
Mbr. Perkins’ motion to adopt Resolution OB No. 2013-004 was seconded by Mbr. Stamey and passed 6-0-1-0. Mbr. Boom was absent.
(#8.2) Resolution OB No. 2013-005 – Approving the Long Range Property Management Plan [§34191.5] for the Property Located at 10 Boardwalk Place, San Ramon, CA and Including Governmental Purpose Properties in the Long Range Property Management Plan Pursuant to HSC §34191.5(2).
Special Projects Manager Patricia Perry presented the report. Upon approval of the Successor Agency (SA), the Oversight Board is required to submit a Long Range Property Management Plan (LRPMP) for approval to the Department of Finance (DOF). The LRPMP addresses the disposition and use of the real properties of the former Redevelopment Agency pursuant to Health and Safety Code SC §34191.5. The SA adopted Resolution No. SA 2013-007 on August 13, 2013 approving the LRPMP for the property located at 10 Boardwalk Place, San Ramon. The subject property was acquired for the purposes of the Redevelopment Plan on December 5, 2008. The appraised value at the time of purchase was $2.2 million. The appraisal did not include any of the buildings and was based on the land value only. No revenue has been generated by the property. The LRPMP seeks to sell the property and distribute the net proceeds from the sale, as property tax revenue distributed to the taxing entities. Net proceeds are the revenues generated by the sale, minus any legal, consultant, commission, or other costs associated with the sale.
The Oversight Board (OB) adopted Resolution No. OB 2013-002 on February 12, 2013 acknowledging that certain real property currently held by the SA is governmental purpose property and that the SA should transfer these properties to the City of San Ramon. Each of the properties was acquired by, and title was taken in the name of the Redevelopment Agency as an interim measure pending the ultimate transfer of title to and acceptance by the City of those properties for public purposes. Governmental Purpose Properties are retained for parkland, open space, and public facilities.
Vice Chair Oliver questioned the “estimate of current value” listed for the Mudd’s property on the LRPMP checklist. Ms. Perry stated that the property has not been appraised since it was acquired. Vice Chair Oliver asked if it was OK to note “yes” on the LRPMP checklist. Chair Fontes responded that, because the worksheet is fairly specific, the report should state that the estimated current value of the Mudd’s property be listed as $2.2 million which was the same value at the time of purchase. He noted that the State will contact the City if it has any concerns. Ms. Perry asked if this approach is recommended for the general purpose properties. Chair Fontes stated that this applies only to the Mudd’s property. Mbr. Stamey recommended that the OB secure a current assessment for the Mudd’s property. Mbr. Perkins stated that a Request for Proposals (RFP) will be sent to commercial real estate brokers. A contract will be issued and appraisals can be obtained. Mbr. Stamey expressed concern regarding the OB’s fiduciary responsibility to understand the value of the asset and the time frame to market the property. Ms. Perry stated that once the DOF approves the LRPMP, the RFP will be issued. She expects a response from the DOF in 4 to 6 weeks. Board Legal Counsel Craig Labadie noted that the DOF will require that the actual property sale must be reviewed and approved by the OB even after the LRPMP has been approved. Ms. Perry stated that the OB will be kept apprised of all of the steps in the process. Mbr. Stamey stated that he has a relationship with a commercial broker and asked if he should recuse himself from voting on the contract. Mr. Labadie stated that there would not be a conflict if Mbr. Stamey does not have a personal financial interest.
Vice Chair Mary Lou Oliver’s motion to adopt Resolution OB No. 2013-005 with the proposed revised wording was seconded by Mbr. Perkins and passed 6-0-1-0. Mbr. Boom was absent.
Chair Fontes questioned the date for the next OB meeting. Ms. Perry stated that she will inform the OB of the RFP date.
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At 4:25 p.m., there being no further business, Chair Fontes adjourned the meeting.
Mary Lou Oliver, Vice Chair
Renee Beck, Interim Board Clerk
Approved at the February 27, 2014 Oversight Board meeting; 4-0-2-1 (Fontes and Nejedly absent; Boom abstain).