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AGENDA BILL Agenda Item No. 5(C) Date: August 19, 2014 To: El Cerrito City Council From: Hilde Myall, Housing Program Manager Melanie Mintz, Interim Community Development Director Lisa Malek-Zadeh, Finance Director Subject: Consultant Services Agreement with Goldfarb & Lipman LLP for Legal Services ACTION REQUESTED Adopt a resolution authorizing the City Manager to execute a consultant services agreement with Goldfarb & Lipman LLP for Fiscal Year 2014-15 legal services related to the implementation of Assembly Bill 1x26 and the City’s affordable housing programs in an amount not to exceed $34,500. BACKGROUND The law firm of Goldfarb & Lipman provided legal services to the former El Cerrito Redevelopment Agency (the “RDA”) for redevelopment, economic development and affordable housing activities since its inception, having served as legal counsel for a number of successful projects and programs. The RDA was dissolved effective February 1, 2012 pursuant to the FY 2011-12 State budget bill, AB 1x26 (the “Dissolution Act”). As the RDA was dissolved, Goldfarb & Lipman continued to provide legal services to the City related to redevelopment dissolution and affordable housing programs for the remainder of the FY 2011-12, and then under a new contract with the City for FY 2012-13 and FY 2013-14. ANALYSIS Continuity in legal advice and representation is important both for housing projects and programs of the former RDA that have been transferred to the City and for matters related to the dissolution of the former RDA, administration of the El Cerrito Redevelopment Agency Successor Agency, and ongoing implementation of AB 1x26. Staff recommends that the City continue to retain the law firm of Goldfarb & Lipman LLP to provide such legal services for FY 2014-15. FINANCIAL CONSIDERATIONS The total proposed not-to-exceed amount of this contract is $34,500, of which $14,500 is to be allocated for legal services related to the Successor Agency and $20,000 for City affordable housing-related services. The $14,500 Successor Agency portion of the contract will be funded out of the Finance Department budget within the General Fund appropriations and is included in the ---PAGE BREAK--- Agenda Item No. 5(C) approved FY 2014-15 City Budget. The City will receive an allowance of up to $250,000 from the Redevelopment Property Tax Trust Fund for FY 2014-15 to administer the Successor Agency, which will reimburse the City for the cost of legal services under this contract. The $20,000 housing portion of the requested contract will be funded from two funds. The City Housing Trust Fund holds a $25,000 deposit from Eden Housing for professional services related to the Eden Senior Housing Development, Disposition and Loan Agreement (Eden DDLA). The Eden Housing developer deposit will fund $10,000 of the housing portion of the contract for legal services related to the Eden DDLA. The remaining $10,000 of the housing portion will be funded out of the Low & Moderate Income Housing Asset Fund budget appropriations and is included in the approved FY 2014-15 City budget. All services performed under this contract will be performed at the direction and request of the City. LEGAL CONSIDERATIONS The City Attorney has has this staff report and associated resolution. Attachments: 1. City Council Resolution 2. Proposed Consulting Services Agreement with Goldfarb & Lipman LLP ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 RESOLUTION NO. 2014–XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSULTANT SERVICES AGREEMENT FOR UP TO $34,500 WITH GOLDFARB & LIPMAN LLP FOR LEGAL SERVICES RELATED TO THE SUCCESSOR AGENCY OF THE FORMER EL CERRITO REDEVELOPMENT AGENCY AND FOR AFFORDABLE HOUSING PROGRAMS WHEREAS, as part of the 2011-12 State budget bill, AB1x26 (the “Dissolution Act”) was enacted significantly modifying the Redevelopment Law to require the dissolution of redevelopment agencies throughout California and the establishment of successor agencies to wind down the former redevelopment agencies’ affairs; and WHEREAS, on August 15, 2011, pursuant to the Dissolution Act, the City elected to serve as the Successor Agency to the El Cerrito Redevelopment Agency (the “Successor Agency”); and WHEREAS, the City Council adopted Resolution No. 2012-04 on January 17, 2012 electing to retain the housing assets and functions previously performed by the El Cerrito Redevelopment Agency (“RDA”) in accordance with Section 34176 of the Redevelopment Law and becoming the housing successor to the El Cerrito Redevelopment Agency (“Housing Successor”); and WHEREAS, the RDA was dissolved effective February 1, 2012 pursuant to the State Budget bill ABX1 26 (the “Dissolution Act”) and all housing assets, less the unencumbered housing balance, and obligations of the former RDA were transferred to the City as housing successor by operation of law; and all liabilities were transferred to the Successor Agency; and WHEREAS, the City Council adopted Resolution No. 2012-43 on June 19, 2012 and Resolution No. 2013-43 on August 20, 2013 retaining Goldfarb & Lipman LLP to provide legal services related to the Successor Agency and the City’s affordable housing programs for FY 2012-13 and FY 2013-14; and WHEREAS, the City Council desires to retain the law firm of Goldfarb & Lipman LLP to provide legal services related to the dissolution of the RDA, the administration of the Successor Agency, the wind down of the former redevelopment agency’s affairs, and the City’s housing functions as Housing Successor; and WHEREAS, the City’s adopted FY 2014-15 budget appropriated funding for legal services related to both the Successor Agency’s activities and the affordable housing program. ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito as follows: 1. The City Council finds that the above recitals are accurate. 2. The City Council hereby authorizes and directs the City Manager to prepare and execute a contract with Goldfarb & Lipman LLP in an amount not to exceed $34,500 for legal services related to the implementation of Assembly Bill 1x26 and the City’s affordable housing programs. 3. This Resolution shall become effective immediately upon its adoption. I CERTIFY that at the regular meeting on August 19, 2014, the City Council of the City of El Cerrito passed this resolution by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS of this action, I have hereunto set my hand and affixed the official Seal of said City, this day of August, 2014. Cheryl Morse, City Clerk Approved: Janet Abelson, Mayor