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HomeMy WebLinkAbout04-26-2011 ORA MinutesAPPROVED BY THE DIRECTORS ON MAY 10, 2011 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING April 26, 2011 The Orange Redevelopment Agency of the City of Orange, California convened on April 26, 2011 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange California. 4:30 P.M. SESSION 1. ROLL CALL PRESENT - Whitaker, Smith, Cavecche, Dumitru, Bilodeau ABSENT - None 2. PUBLIC COMMENTS - None 3. CONSENT CALENDAR 3.1 Confirmation of warrant registers dated April 7 and April 14, 2011. ACTION: Approved. 3.2 Redevelopment Agency Minutes, Regular Meeting of April 12, 2011. ACTION: Approved. MOTION - Cavecche SECOND - Smith AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau All items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM DIRECTORS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 6. REPORTS FROM EXECUTIVE DIRECTOR - None PAGE1 ORANGE REDEVELOPMENT AGENCY MINUTES April 26, 2011 7. ADMINISTRATIVE REPORTS 7.1 Prepay to the City of Orange the outstanding principal balance totaling in the aggregate $11,480,000, and accrued interest in the amount of $481,216.44 on three promissory notes. Discussion — Economic Development Director Jim Reichert gave the staff report. The Agency discussed various scenarios in the event of passage of SB 77. It was noted that the bill is still being revised, and that interpreting the language has been a challenge, leading to confusion of the outcome. Agency members expressed concern taking this specific action not knowing what the final disposition of the property could be. MOTION - Whitaker SECOND - Bilodeau AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau Moved to not prepay the outstanding principal balance on three promissory notes with the City of Orange. 7.2 Cooperation Agreement with the City of Orange to Fund Costs Associated with certain Capital Improvement Projects (CIP). See related City Council Minutes Item No. 7.2) Discussion — Economic Development Director Jim Reichert gave the staff report, providing three findings to be made in support of this action. The Agency discussed the following: According to SB 77, whether tax increment may be used for city improvement projects; There may be other sources of funding for certain projects; Whether bonds are callable; If Agency funds are taken, how will infrastructure be paid; Protection of the Agency's fund balance. Assistant Counsel Ted Reynolds stated that there is language in the Cooperation Agreement giving the City flexibility with adjusting the money between the projects and the timetable for construction or completion by amending the CIP. Director Smith stated the Agency has worked hard to use this money responsibly and needs to protect the fund balance. She added that it is a matter of safety, fiscal responsibility, and for a healthy community to go forward with the Capital Improvement Projects. PAGE 2 ORANGE REDEVELOPMENT AGENCY MINUTES April 26, 2011 7. ADMINISTRATIVE REPORTS (Continued) Director Dumitru agreed the Agency has been fiscally responsible, but a rush to spend it now would be irresponsible. He questioned being able to meet the required findings on all the projects, and that he preferred to pay even a portion of the bond debt rather than continue to finance it. Director Bilodeau commented this is a philosophical debate, and noted the options the state is considering to close their deficit. He stated that with the dissolution of the redevelopment agencies, the money will be funneled to schools, etc. Director Whitaker received confirmation from staff that the agreement could be amended if necessary. He noted that CIP projects are what redevelopment money is for, and stated that he supports the agreement to protect the Agency's money. Chairman Cavecche noted the Agency has always been conservative, allowing for $24 million to be built up, and expressed concern that the state could take that money, noting the state is not making major cuts itself, and that the CIP list goes out five years, and this action is to allocate money for those future projects. Director Whitaker received confirmation from staff that the fund balance amount is $23.1 million. RESOLUTION NO.ORA -0530 A Resolution of the Redevelopment Agency of the City of Orange approving a Cooperation Agreement with the City of Orange and Making Certain Determinations and Findings Related Thereto. MOTION - Cavecche SECOND - Smith AYES - Whitaker, Smith, Cavecche NOES - Dumitru, Bilodeau Moved to approve Resolution No. ORA -0530. 8. LEGAL AFFAIRS - None PAGE 3 ORANGE REDEVELOPMENT AGENCY MINUTES April 26, 2011 9. RECESS TO CLOSED SESSION NOTE: The Redevelopment Agency did not recess to a Closed Session for the following purposes: a. Conference with Legal Counsel Initiation of Litigation. Initiation of litigation pursuant to subdivision (c) of California Government Code Section 54956.9: One potential case. b. To consider and take possible action upon such other matters as are orally announced by the General Counsel, the Executive Director or the Board of Directors prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session. 10. ADJOURNMENT — the Agency adjourned at 10:00 p.m. Declaration of the Clerk of the Orange Redevelopment Agency, Mary E. Murphy, declaring posting of Orange Redevelopment Agency Agenda of a regular meeting of April 26, 2011 at Orange Civic Center kiosk, Police facility at 1107 North Batavia, and the Main Public Library at 407 E. Chapman; all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting. MARJqty. MTJRPHY AGENCY CLERK PAGE