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Date: To: From: February 21, 2012 City Cotu1cil of the City ofEl Cerrito Scott Hanin, City Manager AGENDA BILL Agenda Item No. 7(A)(3) Subject: Appointment of Members to the Successor Agency Oversight Board ACTION REQUESTED Request that the Mayor appoint (an individual) to the Oversight Board of the Successor Agency to represent the City ofEl Cerrito; Request that the Mayor appoint Hilde Myall to the Oversight Board of the Successor Agency to represent employees of the former El Cerrito Redevelopment Agency; and Adopt a resolution ratifying the Mayor's appointment of the aforementioned two members to the Oversight Board of the Successor Agency to the former El Cerrito Redevelopment Agency. BACKGROUND The legislation authorized as ABx1 26 (Dissolution Act) requires that there shall be an oversight board (Oversight Board) established for each former California redevelopment agency's successor agency (Successor Agency). The Oversight Board supervises the activities of the Successor Agency and the wind down of the dissolved redevelopment agency's affairs. It has a fiduciary responsibility to holders of enforceable obligations and taxing entities that benefit from the distributions of property tax and other revenues of the Successor Agency. The Dissolution Act requires the Oversight Board to direct the Successor Agency to determine whether contracts, agreements or other arrangements between the former redevelopment agency and private parties should be terminated or renegotiated to reduce the Successor Agency's liabilities and to increase net revenues to the taxing entities. The Oversight Board also approves the Successor Agency administrative budget. The Oversight Board consists of seven members appointed by: • County Board of Supervisors (two members); • County Board of Education (one member); • Chancellor of California Community Colleges (one member); • Largest special district taxing entity (one member); • Mayor of the city that established the dissolved RDA (one member); and • A former redevelopment agency employee appointed by the Mayor (one member). ---PAGE BREAK--- Agenda Item No. 7(A)(3) ANALYSIS Staff is requesting that the Mayor appoint the two Oversight Board members at this evening's meeting and that the City Council approve a resolution ratifying the mayoral appointments to the Oversight Board. Under the California Supreme Court's decision related to the Dissolution Act, the Oversight Board membership must be completed by May 1, 2012. Staff believes it is important to appoint individuals with knowledge and experience of the former El Cerrito Redevelopment Agency's programs and activities and to make the appointments as soon as is reasonably possible. A meeting of the Oversight Board may be called as soon as there is a quorum of members appointed. It is anticipated that the City's appointees to the Oversight Board will serve until June 30, 2016 unless a member resigns and/or the City makes a new appointment. Any vacancies on the Oversight Board must be filled within 60 days. If any Oversight Board member position remains vacant for more than 60 days, the Governor may appoint to fill that vacancy. Commencing on July 1, 2016, all of the Oversight Boards for the various former redevelopment agencies in a particular county will be consolidated into a single county-wide Oversight Board of a composition specified by the Dissolution Act. FINANCIAL CONSIDERATIONS The fiscal impact to the City of the Oversight Board appointments is minimal. The appointees would be expected to perform Oversight Board member roles as part of their existing duties as public officials and/or city employees. The Dissolution Act states that the Oversight Board members shall serve without compensation or reimbursement for expenses from the Successor Agency. However, the Successor Agency shall pay for all of the costs of meetings of the Oversight Board and may include such costs in its administrative budget. The frequency and schedule for Oversight Board meetings has yet to be determined. However, it is anticipated that the majority of the Oversight Board's work will occur in the initial year of existence as the members review existing obligations and contracts. At a minimum the Oversight Board is expected to meet twice a year to review and approve the Successor Agency Recognized Obligation Payment Schedule. LEGAL CONSIDERATIONS The Oversight Board is deemed to be a local entity for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. The Successor Agency will be responsible for posting the agendas and minutes of Oversight Board meetings and maintaining a Successor Agency website. Oversight board members shall have personal immunity from suit for their actions taken within the scope of their responsibilities as Oversight Board members. Attachments: 1. City Council Resolution Approving the Mayor's Appointments to the Oversight Board of the Successor Agency for the former El Cerrito Redevelopment Agency Page2 ---PAGE BREAK--- Agenda Item No. 7(A)(3) RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO TO RATIFY THE APPOINTMENT BY THE MAYOR OF THE CITY OF EL CERRITO OF TWO MEMBERS TO THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY FOR THE FORMER EL CERRITO REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179 WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council (the "City Council") of the City of El Cerrito (the "City") adopted the Redevelopment Plan for the City of El Cerrito Redevelopment Project Area by Ordinance No. 77-17, adopted on November 28, 1977, as amended by Ordinance No. 80-13, adopted on December 15, 1980; as amended by Ordinance No. 89-5, adopted on July 10, 1989; as amended by Ordinance No. 94-4, adopted on July 25, 1994; as amended by Ordinance No. 2004-3, adopted March 1, 2004; as amended by Ordinance No. 2005-01, adopted March 21, 2005; and as further amended by Ordinance No. 2006-10, adopted November 6, 2006 (collectively, the "Redevelopment Plan"); and WHEREAS, as part of the 2011-12 State budget bill AB1x26 and AB1x27 (respectively the "Dissolution Act" and the "Alternative Redevelopment Program Act") were enacted to significantly modify the Redevelopment Law; and WHEREAS, on December 29, 2011, the California Supreme Court ruled that the Dissolution Act is largely constitutional and the Alternative Redevelopment Program Act is unconstitutional; and WHEREAS, the Court's decision means that all California redevelopment agencies were dissolved on February 1, 2012 pursuant to the Dissolution Act; and WHEREAS, Section 34179(a) of the Redevelopment Law provides that the mayor of the city that authorized the creation of a redevelopment agency may elect to appoint one at-large member to the oversight board ("Oversight Board") of the successor agency to the former redevelopment agency ("Successor Agency"); and WHEREAS, Section 34179(a) of the Redevelopment Law provides that the mayor of the city that authorized the creation of a redevelopment agency may also elect to appoint one member to the Oversight Board of the Successor Agency who represent employees of the former redevelopment agency; and WHEREAS, after careful consideration, the Mayor of the City of El Cerrito has appointed to the Oversight Board and has appointed Hilde Myall as the former redevelopment agency employee member to the Oversight Board of the Successor Agency; and WHEREAS, the Mayor may appoint alternate members if the need arises. 1 ---PAGE BREAK--- Agenda Item No. 7(A)(3) NOW THEREFORE, BE IT RESOLVED, that after careful consideration, the City Council hereby ratifies the Mayor's appointments of and Hilde Myall to the Oversight Board of the Successor Agency, and such appointments are to be effective immediately. The above and foregoing resolution was duly and regularly passed and adopted at a meeting by the City Council of the City of El Cerrito on the 21st day of February, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: I certify that the foregoing is a true and correct copy of the original Resolution on file in the office of the City Clerk of the City ofEl Cerrito. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of said City, this_ day of February, 2012. City Clerk Approved: Mayor 2