CC SR 20151215 08 - Mayor's Appt to RDA Dissolution Oversight BoardRANC HO PALOS VERD ES
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
DEBORAH CULLEN, FINANCE DIRECTOR~
DECEMBER 15, 2015
MAYOR'S APPOINTMENT TO REDEVELOPMENT DISSOLUTION
OVERSIGHT BOARD M1
REVIEWED: DOUG WILLMORE, CITY MANAGER _., r,
Staff Coordinator: Kathryn Downs, Deputy Fin ance Director J{j
RECOMMENDATION
Staff recommends the Mayor appo int one member to the Oversight Board of the
Successor Agency to the Rancho Palos Verdes Redeve lopm ent Agency.
BACKGROUND & DISCUSSION
As part of redevelopment dissolution law, a local Oversight Board was estab li shed to
oversee the business of dissolution. There are seven members, appo inted 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 Chance llor of Ca liforni a Community Co ll eges;
• Two members appointed by the County Board of Superv isors; and
• Two members appo inted by the C ity 's Mayor (not the entire C ity Council), with one
being a member of the emp loyee assoc iation as required by law.
On February 7, 2012, then Mayor Anthony Misetich appointed C ity resident Ken Dyda,
and City employee Kit Fox as Oversight Board members . Now that Mr. Dyda has been
elected to the City Counci l 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 Schedu le (ROPS); which carries the following
advantages:
1
MAYOR'S APPOINTMENT TO REDEVELOPMENT DISSOLUTION OVERSIGHT
BOARD
December 15, 2015
Page 2 of 2
• 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 mid-January, to be submitted to the DOF for approval by February 1, 2016. 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 meeting in
mid-January 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.
2