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OB 05-22-2012 CITY OF CUPERTINO 10300 Torre Avenue Cupertino, CA 95014 SUCCESSOR TO THE REDEVELOPMENT AGENCY OVERSIGIEIT BOARD Special Meeting of May 22,2012, 1:30 p.m.Emergency Operations Center,City Hall 1. CALL TO ORDER The meeting of the Successor to the RDA Oversight Board was called to order on May 22, 2012 at 1:30 p.m. . 2. ROLL CALL Committee members present: Doug Sporleder,Alternate, representing Mike Rock,Central Fire District Carol Atwood, City of Cupertino Chair Irene Lui, County of Santa Clara William Hausman,Cupertino Union School District Vice Chair Gilbert Wong,City of Cupertino Rebecca Haggerty, County Appointee Hector Quinonez, Foothill DeAnza Community College District Others Present: James Williams, Deputy County Counsel, County of Santa Clara Carol Korade, City Attorney, Successor Agency(SA)Staff David Woo, Finance Director, Successor Agency(SA)Staff Vera Gil, Senior Planner, Successor Agency(SA) Staff Chair Lui: Thanked the staff of the Successor Agency (SA) and County who worked collaboratively on the outstanding report which she said would be a model for the successor agencies throughout the state. 3. APPROVAL OF MINUTES Chair Lui moved Approval of Minutes of the special meeting of April 6, 2012 to Item 8, Other Board Updates/Reports. 4. ORAL COMMUNICATIONS: None 5. WRITTEN COMMUNICATIONS: None 6. NEW BUSINESS A. Information Item—Successor Agency and County Staff Reports. Dave Woo,Finance Director. Reported that the SA has been working with the County on the proposal for winding down the agency, which is the purpose of ABX126. The staff report is to set the framework of the proposal and the subsequent items on the agenda, and implement the proposal through various steps such as the ROPS. He outlined that the housing trust keeps all payments made to date to them from the agency of about $1.1 million with no subsequent payments made. The future obligations to Vallco Successor to Redevelopment Agency 2 May 22, 2012 for various public infrastructure improvements totaling approx. $635K plus another $10K to ABAG for equipment which will be installed at Vallco will be placed on the ROPS later on the agenda for approval. Relative to administrative allowance, the administrative budgets of $125K for last year already approved on a previous ROPS and next year's admin allowance of $125K, half of the amount allotted under state law would be placed on this agenda for approval by the Board; those amounts are also on the ROPS. Overall, all of these obligations and admin payments can be paid out of the reserves currently in the agency that the city has in their funds. No additional monies from the county or the county trust fund which has property tax revenues are needed to take care of these obligations; all future tax increments collected by the county can go to the taxing jurisdictions, because the agency is not really indebted, and does not have a lot of long term debt obligations that are made; it allows for about $700K a year in future tax increment revenues that can be distributed out to the tax agencies. In the spirit of winding down, the resolution states that the agency will cease operations after the obligations are made. James Williams,Deputy County Counsel Commented that the county and city staff worked collaboratively on the various components presented to the Board today, including the administrative budget, the ROPS and the resolution, which are a part of Items 6B, 6C and 6D. Carol Korade,City Attorney: Added that she was grateful for the cooperation between the city, the oversight Board and the county and felt that it would be a model because they were achieving the goal of AB26, satisfying their ROPS, and winding down and in essence putting themselves out of business without trying to claim the extra $250K. She noted that the RDA was walking away from its claim of$7.5 million, and not claiming future payments to the housing trust and administrative fees, but stated it was the right thing to do. She pointed out that when you end something it is customary to bring a present; and she felt that their lack of presence was their present; theoretically it is the last meeting of the Oversight Board and they will cease to exist as a Board; the SA will continue to exist but will not function because they no longer have a purpose. Chair Lui: Opened the meeting for public comment;there was no one present who wish to speak. Hector Quinonez: Said he was grateful that they were able to reach an agreement. He asked what the thinking was behind some of the $643K that came forth before as a ROP and was not certified, but now will be certified. James Williams: He clarified that the item was not on the previous ROPS for January through June 2012 because there was no amount payable; not because there was a question about the validity of that contract. It is a contract involving Vallco for certain public infrastructure improvements, trash capture devices and that contract was valid. There was no payment due so it did not appear on that ROPS. 6B. Approve Successor Agency administrative budgets for 2011-12 and 2012-13. Motion: Motion by Haggerty,second by Quinonez,and unanimously carried 7-0-0 to approve the administrative budget of $125K for FY 2012 and 2013. Successor to Redevelopment Agency 3 May 22, 2012 6C. Consideration and approval of certified Recognized Obligation Payment Schedules (ROPS). Motion: Motion by Haggerty, second by Hausman, and unanimously carried 7-0-0 to approve consideration and approval of certified ROPS. 6D. Adopt Resolutions: 1) Directing the Successor Agency, after making payments pursuant to the approved ROPS, to transfer all remaining fund balance from Agency funds to the County Auditor-Controller to reimburse the Redevelopment Property Tax Trust Fund for subsequent distribution to the taxing entities; 2) Directing that the City of Cupertino cease to function as Successor Agency after performing the actions listed in D(1). 3) Directing that the Cupertino Successor Agency Oversight board cease to exist after the City of Cupertino ceases to function as a Successor Agency. The three items were presented to the Board as one resolution. Motion: Motion by Haggerty, second by Hausman, and unanimously carried 7-0-0 to approve the resolution presented to the Board. William Hausman: Asked for clarification on the effective date of dissolution of the SA. James Williams: Clarified that the remaining payments on the ROPS that the Board approved will be made in July of 2012; and the resolution states that once payments are completed there will be no further purpose for the SA to exist and it will cease to function. The meeting was open for public input; as no one was present to speak, the public input portion was closed. 6E. Approve any additional actions, as necessary, to bring about the wind-down of the Successor Agency and Oversight Board. Motion: Motion by Wong, second Haggerty and unanimously carried 7-0-0 to cancel all future meetings for the SA Oversight Board. Vice Chair Wong: Expressed his appreciation to the staff of the County Executive's Office for working with the City Manager in making the SA so successful. He also complimented the special districts, including the community college, fire district, and the elementary school for working together. MOTION: Motion by Wong,second by Hausman,and unanimously carried 7-0-0, to adopt the text of the staff report from 6A,Items 1,2,3,4 and 5. 7. OLD BUSINESS: None 8. OTHER BOARD UPDATES/REPORTS The agenda was moved back to Item 3 Approval of Minutes. Successor to Redevelopment Agency 4 May 22, 2012 MOTION: Motion by Chair Lui, second by Haggerty, and unanimously carried 7-0-0 to approve the minutes of the special meeting of April 6, 2012, as amended with modifications to Pages 4 and 20. 9. ADJOURNMENT The meeting was adjourned by Chair Lui. She thanked everyone present for their cooperation and participation in the success of tiato S4. fir/ Respectfully Submitted: Elizabeth 4, Recording Secretary