Loading...
OB - Item 2A - Minutes 9-10-12Minutes of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission Meeting September 10, 2012 The regular meeting of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission was called to order by Board Member Allred at 5:09 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PLEDGE OF ALLEGIANCE: Board Member Redondo - Churchward PRESENT: Board Members Allred, Jones, Lash, Redondo - Churchward ABSENT: Board Members Alvarez, Miller, and Wallach STAFF PRESENT: Assistant City Manager Hawkesworth and City Clerk Molleda 1. PUBLIC COMMENTS FROM THE AUDIENCE — None 2. CONSENT CALENDAR A. Minutes August 13, 2012 — Regular Meeting Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Nicole Lash, to approve the Consent Calendar. Vote resulted in: Yes: Allred, Jones, Lash, Redondo - Churchward No: None Abstain: None Absent: Alvarez, Miller, Wallach 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. Rosemead Oversight Board Meeting Minutes of September 10, 2012 Page 1 of 3 ITEM NO. Zk . , 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. 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 Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Nicole Lash made a motion, seconded by Board Member Irene Redondo - Churchward, to direct staff to do additional research and bring back to the next Oversight Board meeting scheduled for October 8, 2012. Vote resulted in: Yes: Allred, Jones, Lash, Redondo - Churchward No: None Abstain: None Absent: Alvarez, Miller, Wallach 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. Rosemead Oversight Board Regular Meeting Minutes of September 10, 2012 Page 2 of 3 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. Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Nicole Lash, to authorize staff to enter into an agreement with Vavrinek, Trine, Day & Co., LLP to perform the Low and Moderate Income Housing Fund due diligence review. Vote resulted in: Yes: Allred, Jones, Lash, Redondo - Churchward No: None Abstain: None Absent: Alvarez, Miller, Wallach 4. ADJOURNMENT The meeting adjourned at 5:28 p.m. The next regular Oversight Board meeting is scheduled to take place on October 8, 2012 at 5:00 p.m. Jeff Allred Board Member ATTEST: Matt Hawkesworth Successor Agency Staff Assistant City Manager Rosemead Oversight Board Regular Meeting Minutes of September 10, 2012 Page 3 of 3