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May 25, 2010

A regular meeting of the City of San Ramon Redevelopment Agency was held on May 25, 2010 at 6:02 p.m. in the Council Chamber at City Hall, 2222 Camino Ramon, Chair Rowley presiding.
PRESENT:  Agency Members Hudson, Livingstone, Vice Chair Perkins, and Chair Rowley.
ABSENT:  Agency Member Wilson.
STAFF PRESENT:  Executive Director Herb Moniz, Interim Agency Counsel Roger Peters, Deputy Executive Director Marc Fontes, and Agency Secretary Clerk Patricia Edwards.

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Vice Chair Perkins led those in attendance in the pledge of allegiance.

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The Agency Secretary reported there were no requests for public comment.

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(#5.1) Minutes of the March 23, 2010 meeting.

Vice Chair Perkins’ motion to approve the minutes of the March 23, 2010 meeting was seconded by Mbr. Hudson and passed 4-0.  Mbr. Wilson was absent. 

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(#6.1) Resolution RDA 2010-003 – Adopting the Fiscal Year 2010-2011 Agency Budget and Workplan.

Mbr. Hudson asked if the First Interstate property would be included as a Major Action Plan Item in the Agency Work Plan for 2010-2011.  Executive Director Moniz stated that the item was discussed at the May 24, 2010 Budget Study Session and will be included in the 2010-2011 Budget.

Vice Chair Perkins’ motion to approve Resolution RDA 2010-003 as amended was seconded by Mbr. Hudson and passed 4-0.  Mbr. Wilson was absent. 

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The Agency Secretary reported that the Agency has not received any written communications.

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(#9.1) Resolution RDA 2010-004 – Authorizing a Loan from the Affordable Housing Fund to the Redevelopment Fund for the 2009-10 Supplemental Educational Revenue Augmentation Funds Payment of $2,888,859.

Deputy Executive Director Fontes provided the report.  Part of the State’s 2009-10 adopted budget included a take of $2.05 billion from California’s redevelopment agencies.  The California Redevelopment Agencies Association (CRA) sued the State over the take on constitutional grounds.  The judge ruled on May 5, 2010 and upheld the State’s take of redevelopment funds.  Following the judge’s ruling, CRA attempted to stay the required payment which was due on May 10, 2010.  CRA’s stay was denied on May 7, 2010 and San Ramon made the payment to the State on May 10, 2010.

Because of the judge’s ruling and the uncertainty of future takes of redevelopment funds by the state, the payment was made with Affordable Housing funds as allowed by law.  The funds will have to be repaid to the Affordable Housing fund within five years.  Staff will present a repayment schedule at a later date. 

Vice Chair Perkins asked if the payment can be made from the Redevelopment Agency fund or from the Affordable Housing fund.  Mr. Fontes responded that Redevelopment Agency funds must be used.  The Affordable Housing fund balance including the bond funds is approximately $11-12 million.  Vice Chair Perkins asked the amount of the Redevelopment fund balance.  Mr. Fontes said that there is approximately $7 million with the available bond funds.  The bond fund can be used for the Agency’s administration expenses.  Vice Chair Perkins asked staff to look for opportunities to acquire assets because the state cannot take away real assets.  He suggested that staff research purchasing opportunities within the Redevelopment zone which may have a future use to the Agency.  He speculated that this may protect the city’s assets because if the Agency’s cash balance is minimal, the Agency will not lose money to the state.

Mbr. Hudson stated that, in light of this and future takings, there is a need to explore what is required to extend the Redevelopment Agency Plan for ten years.  Mr. Moniz stated that, if the Redevelopment Plan is extended, the Affordable Housing requirement is increased to 25 years.  Mr. Fontes stated that he will confirm this information. 

Mbr. Livingstone asked how the $2,888,859 was calculated.  Mr. Fontes responded that the state uses a set formula.  Mbr. Livingstone asked what happens if there are no Redevelopment Agency funds available.  Mr. Fontes replied that an Agency must document that there are no available funds.  Mbr. Perkins asked what relief is available if the San Ramon Redevelopment fund balance was less than $2,888,859.  He asked if the state can take cash which the Agency does not have.  Mr. Fontes stated that he will research that question.  Mbr. Perkins noted that only cities with Redevelopment Agencies are being assessed.  Mbr. Hudson noted that there are approximately 1,000 Redevelopment Agencies in the state and that the state will find a way to get funds from the cities which do not have a Redevelopment Agency. 

Vice Chair Perkins asked if the recent initiative included provisions which would prohibit the state from doing this take away.  He suggested that there are two paths to protect the City: the CRA appeal and the initiative process.   Mr. Fontes indicated that he would research this item.  Mr. Moniz responded that the Legislature’s interpretation of how to deal with Prop 13 is that the state is going to pay for everything utilizing local agency funds. 

Mbr. Hudson’s motion to approve Resolution RDA 2010-004 was seconded by Vice Chair Perkins and passed 4-0.  Mbr. Wilson was absent. 

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There being no further business for Agency consideration, the meeting adjourned at 6:22 p.m.

Carol J. Rowley, Agency Chair
Patricia Edwards, Agency Secretary

Approved at the September 14, 2010 Agency meeting, 5-0; Wilson abstained.

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