OB - Item 2A - Minutes 10-08-12Minutes of the
Oversight Board for the Successor Agency to the
Rosemead Community Development Commission Meeting
October 8, 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 5:03 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, Miller, Lash, Redondo - Churchward, Wallach
ABSENT: Board Members Alvarez
STAFF PRESENT: Assistant City Manager Hawkesworth and City Clerk Molleda
1. PUBLIC COMMENTS FROM THE AUDIENCE — None
2. CONSENT CALENDAR
A. Minutes
September 10, 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: Miller, Wallach
Absent: Alvarez
3. MATTERS FROM STAFF OF THE ROSEMEAD SUCCESSOR AGENCY
A. Chamber Loan Agreement
The Board reviewed the Chamber's request to modify the terms of existing loan agreement
at the September 10, 2012 meeting. At that meeting the Board expressed some concerns
that Section 34162 of the Health and Safety Code may prohibit the Board from taking any
action on this request and asked staff to further research the Code. After a thorough review
and consultation with the City Attorney's office, staff believes that section 34162 is only
applicable to the former Redevelopment Agency and does not apply to the Oversight Board.
Section 34162 of the Health and Safety Code falls under Part 1.8, titled, "Restrictions on
Redevelopment Agency Operations ", which was implemented to prohibit former
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ITEM NO.
redevelopment agencies from taking certain actions prior to dissolution. Health and Safety
Code Section 34181 provides guidance and direction in regards to the authority to the
Oversight Board. Subsection "e" provides the following authorization:
(e) Determine whether any contracts, agreements, or other
arrangements between the dissolved redevelopment agency and any
private parties should be terminated or renegotiated to reduce
liabilities and increase net revenues to the taxing entities, and
present proposed termination or amendment agreements to the
oversight board for its approval. The board may approve any
amendments to or early termination of those agreements if it finds that
amendments or early termination would be in the best interests of the
taxing entities.
Due to the severe financial hardship of the Rosemead Chamber of Commerce resulting from
the loss of $38,000 per year in annual funding from the former redevelopment agency, staff
believes that the Oversight Board should be permitted to renegotiate the terms of the loan as
long as the principal is not forgiven and the overall term of the loan is not extended.
Additional back -up regarding the loan may be found in the original staff report dated
September 10, 2012.
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 approve Resolution No. 2012.0010. Vote resulted in:
Yes: Allred, Jones, Lash, Miller, Redondo - Churchward, Wallach
No: None
Abstain: None
Absent: Alvarez
B. Housing Due Diligence Report
Under AB 1484, the Successor Agency was required to complete a due diligence review of
the former Low and Moderate Income Housing Fund. At the last Oversight Board meeting
the Board authorized staff to enter into an agreement with Vavrinek, Trine, Day & Co., LLP to
conduct the review and work to complete the report by the October 1, 2012, deadline. The
review was completed on October 1, 2012 and the report was sent to the various
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governmental agencies as required by the legislation. Prior to the Board formally accepting
and approving the review, the Board is required to hold a public comment session at least
five (5) working days prior to the approval. As such, the Board will need to set a date for a
special meeting to consider the approval of the report on or after October 17, 2012. The
Board may recall that the due date for the approval of the report is October 15, 2012;
however, staff has been informed by the Department of Finance (DOF) that there are no
penalties for late submissions and the DOF requests that the report be submitted as soon as
reasonably possible.
The Agreed Upon Procedures review was conducted in accordance with AB 1484 in order to
ensure that all of the winding down procedures had been followed and to make a
determination as to the amount of available fund balance in the Low and Moderate Income
Housing Fund that may be remitted to the State. As noted in the report, there were no
adverse findings made during the review and the Successor Agency has made the
appropriate transfers of assets and duties as applicable.
Recommendation: That the Oversight Board take the following actions:
1. Open a public comment session to allow for the public comment regarding the Agreed
Upon Procedures reviewed as required by AB 1484.
2. Set a date and time for a special meeting to consider the approval of the Agreed Upon
Procedures review not earlier than October 17, 2012.
Assistant City Manager Matt Hawkesworth reviewed the staff report.
Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Robert Miller,
to open the Public Hearing and allow the public to comment regarding the Agreed Upon Procedures
reviewed as required by AB 1484. Vote resulted in:
Yes: Allred, Jones, Lash, Miller, Redondo - Churchward, Wallach
No: None
Abstain: None
Absent: Alvarez
Board Member Jeff Allred made a motion, seconded by Board Member Marty Jones, to continue the
Public Hearing to Wednesday, October 17, 2012, at 5 p.m. Vote resulted in:
Yes: Allred, Jones, Lash, Miller, Redondo - Churchward, Wallach
No: None
Abstain: None
Absent: Alvarez
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4. ADJOURNMENT
The meeting adjourned at 5:21 p.m. The next special Oversight Board meeting is scheduled to take place on
October 17, 2012 at 5:00 p.m.
Pat Wallach
Chair
ATTEST:
Matt Hawkesworth
Successor Agency Staff
Assistant City Manager
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