CC SR 20160105 02 - Mayor's Appt to Redevelopment Dissolution Oversight BoardI lillk, RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DEBORAH CULLEN, FINANCE DIRECTOR
DATE: JANUARY 5, 2016
SUBJECT: MAYOR'S APPOINTMENT TO REDEVELOPMENT DISSOLUTION
OVERSIGHT BOARD
REVIEWED: DOUG WILLMORE, CITY MANAGER 611V
Staff Coordinator: Kathryn Downs, Deputy Finance Director
RECOMMENDATION
Staff recommends the Mayor appoint one member to the Oversight Board of the
Successor Agency to the Rancho Palos Verdes Redevelopment Agency.
BACKGROUND & DISCUSSION
As part of redevelopment dissolution law, a local Oversight Board was established to
oversee the business of dissolution. There are seven members, appointed as follows:
• One member appointed by the Los Angeles County Fire District;
• One member appointed by the Superintendent of Education;
• One member appointed by the Chancellor of California Community Colleges;
• Two members appointed by the County Board of Supervisors; and
• Two members appointed by the City's Mayor (not the entire City Council), with one
being a member of the employee association as required by law.
On February 7, 2012, then Mayor Anthony Misetich appointed City resident Ken Dyda,
and City employee Kit Fox as Oversight Board members. Now that Mr. Dyda has been
elected to the City Council and currently serves as Mayor, Staff recommends the Mayor
appoint a replacement to the Oversight Board,
As reported to the Successor Agency Board on November 4, 2015, the business of
dissolution is winding down. Staff recommended preparation of a Last and Final
Recognized Obligation Payment Schedule (ROPS); which carries the following
advantages:
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MAYOR'S APPOINTMENT TO REDEVELOPMENT DISSOLUTION OVERSIGHT
BOARD
January 5, 2016
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• Annual ROPS will no longer be submitted to the California Department of Finance
(DOF) for approval;
• The City's loan receivable would be recalculated using a simple interest rate of 4%
(vs. 3%, as currently required by new dissolution law); and
• Repayment of the City loan receivable will be subject to a different formula, which
may result in larger repayment installments for Rancho Palos Verdes.
Staff expects to present a proposed Last and Final ROPS to the Oversight Board for
approval during FY 2015-2016, to be submitted to the DOF for approval. If the Last and
Final ROPS is approved by the DOF, the Oversight Board would no longer have regular
meetings (currently twice annually). The Oversight Board would only be called to meet if
necessary, such as if the law changes again. Per current dissolution law, the local
Oversight Board will cease to exist on July 1, 2018, as its duties will be transferred to a
County Oversight Board.
It is entirely possible that the new appointee may only serve for one or two
meetings in FY 2015-2016.
Staff recommends the Mayor appoint a replacement for the following reasons:
• One County -appointed seat continues to remain vacant (formerly served by Mr.
Steve Wolowicz);
• There is a history of difficulty obtaining an Oversight Board quorum; and
• There is a possibility that more Oversight Board meetings may become necessary
due to unforeseen circumstances.
There are no qualification requirements for the appointee, and the appointee may be a
City Council Member. The appointee will not be compensated, as required by dissolution
law.
As an alternative, the Mayor may choose not to appoint a replacement; and the seat will
remain vacant, with only 5 of the 7 Oversight Board members serving.
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