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RPVCCA_CC_SR_2012_02_07_06_RDA_Dissolution_Mayor's_Appt_To_Oversight_BoardCITY OF MEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: Staff Coordinator: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CAROL LYNCH,CITY ATTORNEY ROBIN HARRIS,DEPUTY CITY ATTORNEY DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION TECHNOLOGY ~~.D V\Jl C. FEBRUARY 7,2012 NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION - MAYOR'S APPOINTMENTS TO OVERSIGHT BOARD CAROLYN LEHR,CITY MANAGER~<:..L Kathryn Downs,Deputy Director of Finance &Information Technology RECOMMENDATION Staff recommends the Mayor appoint two members to the Oversight Board,so that the City's interests and perspective will be represented at meetings of the Oversight Board. EXECUTIVE SUMMARY The new redevelopment law requires formation of an Oversight Board to oversee dissolution of the Redevelopment Agency,including payments of debts,termination of agreements,disposal of assets,and distribution of funds. The Mayor is to appoint 2 of the Oversight Board's 7 members.One of the Mayor's appointees must be a member of the Rancho Palos Verdes Employee Association.Kit Fox,a Senior Administrative Analyst and former Associate Planner with Redevelopment experience,has volunteered to serve on the Oversight Board as the Mayor's appointee from the Employee Association.Based on his experience and skills,Staff recommends the appointment of Mr.Fox. The other Mayoral appointee must be a resident,may be a City Council Member and does not have to possess any specified qualifications.These appointees will not be compensated and will be expected to attend a series of meetings to conduct the business of dissolution.Members will likely be expected to serve through July 1,2016.At this time, 6-1 NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION - MAYOR'S APPOINTMENTS TO OVERSIGHT BOARD February 7,2012 Page 2 of4 it is not known where orwhen the meetings will be conducted.Meetings may be held in a more centralized location (e.g.County offices located in downtown Los Angeles).Meetings may begin as soon as 4 members (a quorum)are appointed and must begin by May 1, 2012. The City,as the Successor Agency,will be responsible for the cost of Oversight Board meetings.This cost may include mileage reimbursement for all 7 members;as well as the costs of staffing the meetings much like a City Advisory Board,which may include preparation of agendas,reports and minutes,answering questions,and providing information. DISCUSSION The new redevelopment law signed by the Governor on June 29,2011 and upheld by the California Supreme Court on December 23,2011 dissolves redevelopment agencies as of February 1,2012 ("the dissolution law").As part of the dissolution of the Rancho Palos Verdes Redevelopment Agency (Agency),the City has elected to serve as the Successor Agency.The dissolution law requires that each successor agency will have an Oversight Board of 7 members to oversee dissolution of the Agency,including payments of debts, termination of agreements,disposal of assets,and distribution of funds. Appointment of Oversight Board The Oversight Board will be appointed as follows: ~2 members to be appointed by the Mayor of Rancho Palos Verdes (1 from the employee association); ~1 member to be appointed by the Fire District,which is the largest non-enterprise special district by property tax share; ~1 member to be appointed by the Superintendant of Education; ~1 member to be appointed by the Chancellor of California Community Colleges;and ~2 members to be appointed by the Los Angeles County Board of Supervisors,with 1 of those members representing the pUblic. The Mayor is to select two members of the Oversight Board.One appointee must be a resident,may be a City Council Member and does not have to possess any specified qualifications.The other Oversight Board member must be a member of the Rancho Palos Verdes Employees Association.Staff has attached a list of all employees who are a member of the Employee Association for the Mayor's consideration.There is no compensation for Oversight Board members. Meetings of the Oversight Board The oversight board may direct the staff of the successor agency in furtherance of their duties and responsibilities under AB X1 26. AB X1 26 provides for the California Department of Finance (DOF)to review the actions of oversight boards,and actions of the 6-2 NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION - MAYOR'S APPOINTMENTS TO OVERSIGHT BOARD February 7,2012 Page 3 of4 oversight board will not be effective for three business days pending a request for review by the DOF.If the DOF returns an action to the oversight board for reconsideration,the oversight board must obtain approval of its modified action. Commencing on July 1,2016,the individual oversight boards for each dissolved redevelopment agency will be replaced with a single oversight board for each county.The appointment of members will be the same as for the individual boards,except the city and special district members will be appointed by the respective selection committees established pursuant to the Government Code and the recognized employee organization member will be appointed by the organization instead of the mayor. The Oversight Board must approve a number of actions of the Successor Agency including the following: ~Establishment of new repayment terms for outstanding loans where such terms have not been specified prior to the date of Part 1.85; ~Acceptance of federal or state grants or other forms of financial assistance from public or private sources if the assistance is conditioned upon the provision of matching funds by the successor agency in an amount greater than five percent; ~Establishment of the Recognized Obligation Payment Schedule;and ~A request by a successor agency or taxing entity to pledge,or to enter into an agreement for the pledge of,property tax revenues. The Oversight Board must direct the successor agency to do certain things,including the folloWing: ~Dispose of all assets and properties of the agency that were funded by tax increment revenues of the agency,except that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of the asset; ~Cease performance in connection with and terminate all existing agreements that do not qualify as enforceable obligations; ~Transfer housing responsibilities and all rights,powers,duties and obligations, along with any amounts on deposit in the Low and Moderate Income Housing Fund, to the appropriate entity (note,however,that other provisions of AB X1 26 provide for the unencumbered balance of the Low and Moderate Income Housing Fund to be disbursed to taxing entities); ~Terminate any agreement between the dissolved redevelopment agency and any public entity located in the same county that obligates the agency to provide funding for any debt service obligations of the public entity or for the construction or operation of facilities owned or operated by such public entity in any instance where the oversight board has found that early termination would be in the best interests of the taxing entities;and ~Determine whether any contracts or other arrangements between the dissolved 6-3 NEXT STEPS IN REDEVELOPMENT AGENCY DISSOLUTION - MAYOR'S APPOINTMENTS TO OVERSIGHT BOARD February 7,2012 Page 4 of 4 redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase the revenues to the taxing entities,and present proposed termination or amendment agreements to the oversight board for its approval.The oversight board may approve any amendments to or early termination of such agreements where it finds that this would be in the best interests of the taxing entities. Meetings of the Oversight Board may begin as soon as a quorum is appointed (4 of 7 members).Because the Oversight Board must report its membership to the California Department of Finance by May 1,2012,the Oversight Board must conduct its first meeting prior to that date.Any Oversight Board positions not filled by May 15,2012 may be appointee by the Governor. At this time,it is not know what kind of time commitment will be required of Oversight Board Members.In addition,it is not yet known where or when the meetings will be conducted.As the Oversight Board will be heavily weighted with representatives from with County interests,meetings may be held in a more centralized location (e.g.County offices located in downtown Los Angeles). The City,as the Successor Agency,is responsible for the cost of conducting Oversight Board meetings.This cost may include mileage reimbursement for the entire Oversight Board to attend meetings,as well as the time and resulting cost to support the meetings with Staff who would prepare reports,present information,possibly prepare agendas and meeting minutes and answer questions asked by the Oversight Board.It appears as though the Oversight Board will likely require support similar to a City Advisory Board. FISCAL IMPACT Nothing is currently included in the FY11-12 budget for the operation and support of the Oversight Board.Although the out-of-pocket costs of conducting Oversight Board meetings may be relatively inconsequential,Staff time and the resultant cost,may be significant depending on the frequency of meetings.No additional information about the cost of Oversight Board meetings is available at this time. 6-4 Employee Association Members Iii fBE Alvarez John Srenior Planner Arreaga David Lead Worker Banuelos Bruno Maintenance Worker II Blanco Emilio Maintenance Superintendent Bonano Tracy A Administrative Analyst II Brummett Christy L Executive Staff Assistant Cloke Lorna Administrative Analyst II DeFazio Thomas M Permit Technician Dill Mona Rec Program Supervisor II Dragoo Ronald Senior Engineer Fox Harold Senior Administrative Analyst Gan-Vanderlinde Yingtao Senior Accountant Harwell Abigail Assistant Planner Howe Katherine Administrative Analyst II Huey Judy Senior Administrative Analyst Ishman Sandra Permit Technician Jules NicoleY Senior Engineer Kim So Assistant Planner Lin Jane Accountant Martin Kathryn Permit Clerk Mikhail Leza Associate Planner Mills Ryan P Senior Administrative Analyst Mitchell Pamela Administrative Staff Assistant Motahari Siamak Senior Engineer Murphy Melissa A Associate Engineer Peterson Julie Code Enforcement Officer Pitts Daniel Code Enforcement Officer Ramezani Lauren Senior Administrative Analyst Schonborn Eduardo Senior Planner Seeraty Amy Associate Planner Silver Nancie Rec Program Supervisor II Starr Holly Recreation Services Manager Takaoka Teresa Deputy City Clerk Vaish Bindu Associate Engineer Van Overbeck Gayle Account Clerk II Vitez Nancy Staff Assistant II Waters Matthew Senior Administrative Analyst Wiener Michael Building Inspector II Winje AndrewS Associate Engineer Wright Selena Senior Accounting Technician Zents Marsha Administrative Staff Assistant 6-5