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HomeMy WebLinkAboutItem 2e: Appointments to Oversight Board for Successor Agency and Supervisor Antonovich's Oversight Board and Sanitation District Board OF ARc- S G�LtFORIyI MOW • • I.r,;n■s A�nut J,Bf3 °aitY°t� STAFF REPORT Development Services Department DATE: March 6, 2012 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director5t 1 SUBJECT: APPOINTMENTS TO THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE ARCADIA REDEVELOPMENT AGENCY AND RECOMMENDATIONS FOR APPOINTMENTS TO THE OVERSIGHT BOARD BY LOS ANGELES COUNTY SUPERVISOR MICHAEL ANTONOVICH AND THE LOS ANGELES COUNTY SANITATION DISTRICT. Recommendation: Provide Direction on Appointments SUMMARY: On February 21, 2012, the Council adopted Resolution No. 6821, which authorized the Mayor and City Manager to make appointments to the Oversight Board for the Successor Agency to the Arcadia Redevelopment Agency. With the Resolution now in place, the Council elected to consider names for appointments to the Oversight Board at the March 6, 2012 meeting. The Mayor is charged with appointing one member of the public and one member representing the staff of the former Redevelopment Agency. In addition, names for potential appointees have been requested from both the County Supervisor and the County Sanitation District for their consideration. BACKGROUND: On June 28, 2011, as part of the 2011-2012 State of California budget bill, companion bills Assembly Bill 1X 26 ("AB 26") and Assembly Bill 1X 27 ("AB 27") were enacted, dissolving the Redevelopment Agency of the City of Arcadia ("Agency"), unless the City of Arcadia ("City") elected to participate in the "Alternative Voluntary Redevelopment Program" established by AB 27. On July 18, 2011, a case was filed in the California Supreme Court challenging the constitutionality of AB 26 and AB 27 on behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement of AB 26 and AB 27, pending the Supreme Court's determination of the legality of AB 26 and AB 27. On August 11, 2011, the Supreme Court issued a partial stay of AB 26 that included suspending new redevelopment activity, and a complete stay of AB 27, such that the City and the Agency could not pursue new redevelopment activity under the Alternative Voluntary Redevelopment Program (collectively, "Stay"). On August 17, 2011, the Supreme Court modified the Stay but all new redevelopment activity was still prohibited. On December 29, 2011, the Supreme Court issued its opinion in the Legal Action, upholding AB 26, invalidating AB 27, extending certain statutory deadlines under Health and Safety Code Sections 34170 through 34191. The effect of the ruling was to dissolve all redevelopment agencies in California, including the Arcadia Redevelopment Agency as of February 1, 2012. AB 26 provides that a successor agency is to be designated as the successor entity to the former Agency, vested with all authority, rights, powers, duties, and obligations previously vested with the former Agency under the Community Redevelopment Law, with certain exceptions. This successor agency is to be responsible for the wind down of the Agency's affairs. The City elected to be the Agency's successor agency on January 3, 2012. The activities of the City, as successor agency, will be overseen by an oversight board ("Oversight Board"), until such time as all of the debts of the Agency are paid off, all Agency assets liquidated and all property taxes previously paid to the Agency are redirected to local taxing agencies. DISCUSSION Health and Safety Code section 34179, enacted by AB 26, provides that the Oversight Board is to be composed of seven (7) members, selected as follows: 1. One member appointed by the Los Angeles County Board of Supervisors. 2. One member appointed by the Mayor of the City. 3. One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the Agency, which is the type of special district eligible to receive property tax revenues pursuant to Health and Safety Code section 34188. If there are no such special districts within the territorial jurisdiction of the Agency, then the County of Los Angeles may appoint an additional member to represent the public. 4. One member appointed by the Los Angeles County Superintendent of Education to represent schools, if the Superintendent is elected. If the Superintendent is appointed, then the appointment shall be made by the Los Angeles County Board of Education. 5. One member appointed by the Chancellor of the California Community Colleges to represent community college districts in Los Angeles County. 6. One member of the public appointed by the Los Angeles County Board of Supervisors. Appointments to Oversight Board March 6, 2012 Page 2 of 3 7. One member representing the employees of the Agency appointed by the Mayor from the recognized employee organization representing the largest number of former Agency employees employed by the successor agency at that time. Based on Health and Safety Code section 34179, the Mayor is responsible for appointing two members to the Oversight Board. Resolution No. 6821 was drafted such that (1) the Mayor or his designee shall be the member appointed by the Mayor; and (2) the City Manager or his designee shall be the member representing Agency employees. This methodology did not include specific names in the Resolution, which avoids the need to modify the Resolution each time a member changes. The actual names of designees will be discussed at the March 6 meeting and all decisions shall be forwarded to be part of the Oversight Board. The office of Supervisor Michael Antonovich and representatives of the Los Angeles County Sanitation District (as the largest taxing district in the City) have indicated that they are open to recommendations from the Mayor and Council for their respective appointments to the Oversight Board. As part of this item, the Council should offer names of potential appointees to the Supervisor's office and the Sanitation District. FISCAL IMPACT: There is no fiscal impact related to this item. RECOMMENDATION: Provide direction on appointments. Approved By: ,.7:2mCLPe,_. nnc, e� Donald Penman, City Manager Appointments to Oversight Board March 6, 2012 Page 3 of 3