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OB - Agenda - 09-10-12 Pat Wallach, Chair Raul Alvarez, Vice Chair Jeff Allred, Board Member Marty Jones, Board Member Nicole Lash, Board Member Robert Miller, Board Member Irene Redondo-Churchward, Board Member Rosemead Oversight Board for the Successor Agency to the Rosemead Community Development Commission MEETING AGENDA September 10, 2012 5:00 PM City Hall Council Chamber 8838 E. Valley Boulevard Rosemead, CA 91770 www.cityofrosemead.org Public Comment from the Audience If you wish to address the Oversight Board, please complete a Speaker Request Card, as it must be handed to the City Clerk before the start of the meeting. The Board will hear public comments on matters not listed on the agenda during the Public Comments from the Audience period. Opportunity to address the Board (on non-agenda items) is limited to 3 minutes per speaker. The Board will hear public comments on items listed on the agenda during discussion of the matter and prior to a vote. Brown Act Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The Board may direct staff to investigate and/or schedule certain matters for consideration at a future Board meeting. Rules of Decorum Persons attending the meeting shall observe rules of propriety, decorum, good conduct, and refrain from impertinent or slanderous remarks. Violation of this rule shall result in such persons being barred from further audience before the governing body. Pursuant to Gov. Code Sect. 54954.3(c), any person who engages in unlawful interference shall be removed from chambers. Americans with Disabilities Act In compliance with the ADA, if you need special assistance to participate in this meeting, please contact the City Clerk’s office at least 48 hours prior to the meeting to allow the City to make reasonable arrangements to ensure accessibility to the meeting or service. This agenda was posted 72 hours in advance of the meeting at the City Hall, 8838 E. Valley Boulevard, Rosemead; the L.A. County Library, Rosemead Branch, 8800 E. Valley Boulevard, Rosemead; and other locations pursuant to RMC Sec. 1.08.020. Any writings or documents provided to a majority of the Rosemead Oversight Board regarding any item on this agenda will be made available for public inspection in the City Clerk’s office during normal business hours. ROSEMEAD OVERSIGHT BOARD MEETING AGENDA September 10, 2012 Page 2 of 4 Oversight Board Meeting Agenda CALL TO ORDER – 5:00 PM PLEDGE OF ALLEGIANCE – Board Member Lash OATH OF OFFICE – Board Member Robert Miller ROLL CALL: Board Members – Allred, Alvarez, Jones, Lash, Miller, Redondo-Churchward, Wallach 1. PUBLIC COMMENTS FROM THE AUDIENCE The Oversight Board will receive public comments on matters not listed on the agenda. 2. CONSENT CALENDAR A. Minutes August 13, 2012 – Regular Meeting 3. MATTERS FROM STAFF OF THE ROSEMEAD SUCCESSOR AGENCY A. Chamber Loan Agreement The former Rosemead Community Development Commission approved a loan to the Rosemead Chamber of Commerce (“Chamber”) on September 14, 2010 in the amount of $25,000. The promissory note requires annual payments of $6,000 beginning July 1, 2012 with the loan being paid in full on July 1, 2015. The terms of the loan included 0.0% interest, a 3.0% late charge assessed on payments made after July 10th of each year, and was secured by a Negative Pledge Agreement on the Chamber owned property at 3953 Muscatel Avenue. The Successor Agency received a letter dated August 16, 2012 from the Chamber requesting a renegotiation of the terms of the promissory note due to a financial hardship. Prior to the elimination of redevelopment, the Community Development Commission and the Chamber had a memorandum of understanding which provided for annual assistance in the amount of $48,000 in return for a number of economic development related programs. The loss of the $48,000 has created a significant funding shortfall for the Chamber and they have been working to restructure their operations in order to remain solvent. Renegotiating the terms of the loan by delaying the first payment by one year will provide the Chamber with additional time to stabilize their financial position. The request includes a delay of the first payment until July 1, 2013 and to increase each payment by $2,000 with the final repayment date of July 1, 2015 remaining. ROSEMEAD OVERSIGHT BOARD MEETING AGENDA September 10, 2012 Page 3 of 4 Recommendation: That the Oversight Board approve Resolution No. 2012-0010, entitled: A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING REVISED TERMS FOR THE PROMISSORY NOTE WITH THE ROSEMEAD CHAMBER OF COMMERCE DATED SEPTEMBER 14, 2010 B. Housing Due Diligence Review Under AB 1484, the Successor Agency is required to complete a due diligence review of the former low-moderate housing fund. The legislation requires that the review be completed by October 1, 2012 and transmitted to the Department of Finance (DOF) and various other agencies no later than October 15, 2012. Unfortunately, the guidelines for the review were not made available until August, 27, 2012 which allowed for slightly more than one month to review a proposal from a certified public accountant, approved that contract by both the Oversight Board and the County, conduct the due diligence review, receive and review the report, hold a public hearing and transmit the final report to the DOF. Unfortunately, providing one month to complete all of these tasks is not realistic; however, the Successor Agency staff and the recommended accounting firm are committed towards working to meet the deadlines. Realizing that he deadline imposed by AB 1484 may not be attainable, Rosemead along with many other successor agencies have requested an extension by the DOF. The DOF has informed Rosemead that under the AB1484, they do not have the authority to modify that due date of the report; however, they have also pointed out that there is no penalty for not filing the report by the deadline. The DOF response stated, “We just ask that you try your best to submit it as close to the deadline as possible.” A copy of the email requesting a change in the date along with the response from the DOF has been attached for reference. As previously mentioned to the Board, in order to expedite the review staff had recommended to continue using the same firm that he County had hired to conduct the due diligence review of the former redevelopment agency. The firm of Vavrinek, Trine, Day & Co., LLP does not have a previous relationship with the City and was included on a list of acceptable firms provided by the County. The firm is currently working on a proposal, but it was not available at the time the agenda was prepared. The proposal will be forwarded to the Board as soon as it is available. Recommendation: That the Oversight Board authorize Successor Agency staff to enter into an agreement with Vavrinek, Trine, Day & Co., LLP to perform the Low and Moderate Income Housing Fund due diligence review. ROSEMEAD OVERSIGHT BOARD MEETING AGENDA September 10, 2012 Page 4 of 4 4. ADJOURNMENT The next regular Rosemead Oversight Board meeting is scheduled to take place on Monday, October 8, 2012 at 5:00 p.m.