RECOMMENDATION(S): (CONT'D)
3. DIRECT the Clerk of the Board to post the vacancy for the public member seat on the Contra Costa County Redevelopment Successor Agency Oversight Board;
4. REQUEST that the City of Pittsburg, the County Superintendent of Schools, and the California Community Colleges Chancellor appoint members to the Contra Costa County Redevelopment Successor Agency Oversight Board by March 20, 2012;
5. CONSIDER making appointments to the oversight boards for the 16 other successor agencies to former redevelopment agencies located within Contra Costa County, as specified in Exhibit A;
6. CONSIDER adding Oversight Boards to the policy governing appointments to independent boards, committees , and commissions, and special districts; and
7. CONSIDER adding Oversight Boards to the Board committee assignment roster as Special/Restricted Type IV appointments.
FISCAL IMPACT:
The Oversight Board has no direct impact on the General Fund. Members of the Oversight Board do not receive compensation. The Oversight Board is supported by staff of the Successor Agency to the former Redevelopment Agency (RDA), which is funded by a portion of the property tax revenue in the Redevelopment Property Tax Trust Fund allocated to the Successor Agency.
The decisions of the Oversight Board can affect the General Fund indirectly. It is difficult to estimate this impact to the General Fund because the financial circumstances of each former redevelopment agency vary. The Department of Finance has estimated that of the $5 billion in property tax revenue previously captured by redevelopment agencies annually, at least $2 billion is likely to be directed in the next several years to enforceable obligations of the former redevelopment agencies, and not available to the remaining taxing entities as property tax revenue. The impact to the General Fund from the decisions of the Oversight Boards (for the former RDAs established by the County and the cities) could play out in the following three ways:
- The Oversight Board can make decisions that encourage new development within the former redevelopment project areas, and thereby increase the tax base within these project areas and increase property tax revenue to the taxing entities that have territory within the former project area. The County is a taxing entity in all the project areas and would experience an increase in property tax revenue to the General Fund as a result of new development supported by an Oversight Board decision.
- The Oversight Board can make decisions that limit the enforceable obligations of the Successor Agency, and thereby make more property tax revenue available to the taxing entities that have territory within the former project area. The County is a taxing entity in all the project areas and would experience an increase in property tax revenue to the General Fund as a result of limiting the enforceable obligations of the Successor Agency.
- The Oversight Board can make decisions that limit the enforceable obligations of the Successor Agency, and thereby make more property tax revenue available to the taxing entities that have territory within the former project area. Any revenue to school districts would replace revenue that would come from the State General Fund, and free up State General Fund revenue for other state obligations, such as the State’s realignment of public safety programs initiated in the 2011 State Budget, and indirectly potentially increase revenue to the County for public safety programs.
BACKGROUND:
As of February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, equipment and the existing Housing Fund balance of a former Contra Costa County redevelopment agency (RDA) transferred to the control of the Successor Agency or the Successor Housing Agency, which is the County of Contra Costa. The Dissolution Act (ABx1-26) mandates that the Successor Agency must undertake several activities under the direction of its Oversight Board. These activities include:
- Prepare a Recognized Obligation Payment Schedule for each six month period of each fiscal year, including identifying the funding source for all enforceable obligations of the former RDA;
- Dispose of the former RDA’s non-housing assets or properties expeditiously and in a manner aimed at maximizing value (proceeds to be distributed similar to normal property tax proceeds); and
- Prepare an administrative budget.
The Oversight Board does not oversee the Successor Housing Agency or its assets. Assets of the Successor Housing Agency are to used to continue with the production of affordable housing. Oversight Boards are mandated by the Dissolution Act to be established for each Successor Agency. These boards are not governed by the Successor Agencies. An Oversight Board is generally intended to supervise the activities of the Successor Agency. The Oversight Board has a fiduciary responsibility to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenue maintained by the County Auditor Controller.
The Dissolution Act requires the Oversight Board to direct the Successor Agency to determine whether contracts, agreements or other arrangements between the former RDA and private parties should be terminated or renegotiated to reduce the Successor Agency’s liabilities and to increase net revenue to the taxing entities. This review has potential impacts to the County General Fund that have been described in earlier reports to the Board on the new redevelopment law (September 20, 2011 - Item D.3 and January 17, 2012 - Item SD.6).
The actions of the Oversight Board of each Successor Agency will in turn be overseen by the Director of the Department of Finance and may be subject to disapproval or modification.
A majority of the total membership of the Oversight Board shall constitute a quorum for the transaction of business. A majority vote of the total membership of the Oversight Board is required for the Oversight Board to take action. The Oversight Board shall be 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. Oversight Boards are independent of the Board of Supervisors and are not covered by the Better Government Ordinance.
Oversight Board of the Contra Costa County Redevelopment Successor Agency
This Oversight Board will consist of seven (7) members. The Board of Supervisors will be responsible for appointing a majority of these members and in doing so can influence how the Oversight Board directs the activities of the Successor Agency. Appointments for all seven members and any qualifications are as follows:
- One member appointed by the County Board of Supervisors.
- One member appointed by the mayor for the city that formed the redevelopment agency. When a sponsoring jurisdiction is a county, then the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member. Several years ago the City of Pittsburg annexed Ambrose Park into that city. Ambrose Park is within the Bay Point project area, so the Mayor of Pittsburg would make an appointment to the Oversight Board of the Successor Agency to the former Contra Costa County RDA.
- One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenue pursuant to Health & Safety Code Section 34188. For the former Contra Costa County RDA, this would be the Contra Costa Fire Protection District.
- One member appointed by the county superintendent of education to represent schools if the superintendent is elected. Dr. Joseph A Ovick is the elected Superintendent of Schools for Contra Costa County.
- One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county. Dr. Jack Scott is the Chancellor of California Community Colleges. The Contra Costa Community College District serves Contra Costa County.
- One member of the public appointed by the County Board of Supervisors. It appears the intent of the statute is to have one seat on the oversight board filled by a member of the public, as opposed to an elected governmental official, because the statute distinguishes between "one member appointed by the county board of supervisors," and "one member of the public appointed by the county board of supervisors." The California Attorney General in 1975 issued an opinion concluding that an elected county supervisor could not serve as a "public member" on a regional coastal commission, because the statute distinguished between public members and governmental officials.
- One member representing the employees of the former redevelopment agency appointed by the Chair of the Board of Supervisors from the recognized employee organization representing then largest number of former redevelopment agency employees employed by the successor agency at that time. Local 21 represents the largest number of former RDA employees, who are as follows:
- Maureen Toms, Planner 4
- Kristen Lackey, Administrative Services Assistant 3
- Gabriel Lemus, Planner 3
- Patrick Nurre, Accountant 3
The Chair of the Board of Supervisors can make this appointment from any employee represented by Local 21. The Department recommends appointing Kristen Lackey to fill this seat on the Oversight Board because of her expertise in the business agreements and the financial transactions of the former RDA.
The Board may wish to consider qualifications for appointments, such as:
- All appointees must reside or work in the County;
- All appointees must be electors of this County;
- If any eligibility requirement is not maintained, the Board shall immediately terminate the appointment upon notification by the advisory body chair; or
- An interest in complex business agreements and financial transactions.
The legislation does not require appointment of alternates, but the Board may choose to include alternates in its appointments and request that the other appointing authorities include appointment of alternates.
Because the Oversight Board is an independent entity, it will need to establish its own operating rules, including length of terms.
The Dissolution Act specifies that the Chair of the Board of Supervisors will make the appointment of the representative of the union representing the largest number of former redevelopment agency employees. Beyond that the Board is free to choose its process for making its appointments.
As you are aware, the Board approved Resolution 2011/498 adopting policy governing appointments to independent boards, committees, and commissions, and special districts. A copy of this resolution is included with this Board Order. Using this policy as a guide, the Oversight Board of the Successor Agency to the former Contra Costa County RDA would be included in the list of independent decision-making bodies that comprise Exhibit A of Resolution 2011/498. This Oversight Board would also be included in Exhibit C of Resolution 2011/498 which lists bodies for which a Board Committee interviews applicants for at-large seats.
The Oversight Board will be grappling with many important issues quickly, such as approving the enforceable obligations of the Successor Agency, reviewing business agreements of the former RDA, and winding down the affairs of the former RDA. The Successor Agency must submit its first Recognized Obligation Payment Schedule to the State Controller and the Department of Finance by April 15, 2012. It would be beneficial, though not necessary, to have the Oversight Board’s approval of this schedule prior to April 15th. This milestone is two months away.
Staff also recommends that letters be sent to the other appointing authorities to the Oversight Board as soon as possible, with a request to provide the appointments no later than March 20.
Oversight Boards of the other Redevelopment Successor Agencies within Contra Costa County
Pursuant to the Dissolution Act, the Board of Supervisors will be making appointments to the Successor Agencies for the sixteen former RDA's sponsored by cities within Contra Costa County. At a minimum, the Board of Supervisors will be making two appointments; one appointment representing the Board, and a second appointment representing the public. In addition, the Contra Costa Fire Protection District is the largest special district in eight of these Successor Agencies. In these cases the Board will be making a third appointment, as the governing board of the District, to the Oversight Boards of these Successor Agencies. Exhibit A lists these appointments by Successor Agency. Exhibit B provides a map describing where these appointments will occur and the largest special district for each of the Successor Agencies.
County staff has received a copy of a request from the San Pablo City Manager to Supervisor Gioia requesting approval of appointments to the Successor Agency of the former San Pablo RDA. A copy of this request is attached to this Board Order. We are not aware of any other correspondence from a city requesting appointments to the Oversight Board of their Successor Agency. The Board has an opportunity to make these appointments at the same time it appoints members to the Oversight Board of the Successor Agency for the former Contra Costa County RDA. Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district.
The Board is free to choose its process for approving appointments to the Oversight Boards of the other Successor Agencies. If Resolution 2011/498 is used as a guide, the Oversight Boards of the other Successor Agencies would be included in the list of independent decision-making bodies that comprise Exhibit A of Resolution 2011/498. Three of these Oversight Boards are for Successor Agencies that span two Supervisorial Districts and therefore could be included in Exhibit C of Resolution 2011/498 which lists bodies for which a Board Committee interviews applicants for at-large seats. The remaining Oversight Boards could be considered Supervisorial District Seats and follow the appointment procedure described in Resolution 2011/498.
Consistent with existing Board policy, Resolution 2012/8 (which approves Board committee assignments for 2012) should be updated to include the Oversight Boards for all the Successor Agencies in Contra Costa County. These Oversight Boards would be Special/Restricted Type IV appointments. A copy of Resolution 2012/8 is also attached to this Board Order.
CONSEQUENCE OF NEGATIVE ACTION:
Each Oversight Board elects and reports the name of chairperson and other members to the State Department of Finance by May 1, 2012. The Governor appoints persons to unfilled positions on Oversight Boards (or any member position that remains vacant for more than 60 days).
CHILDREN'S IMPACT STATEMENT:
Funding for public schools will not likely change with dissolution of redevelopment agencies since property tax revenue received by school districts will allow the state to reduce its general fund contribution by an equivalent amount.
CLERK'S ADDENDUM
Speakers: Vincent Wells, President, Firefighters Local 1230.
1st Motion Approved ALL IN FAVOR:
1.) APPOINTED Supervisor Glover to the Contra Costa County Redevelopment Successor Agency Oversight Board, as the appointee of the Contra Costa County Board of Supervisors. Appoint Supervisor Mitchoff to the Contra Costa County Redevelopment Successor Agency Oversight Board, as the appointee of the Contra Costa County Fire Protection District Board of Directors.
2.) APPOINTED Kristen Lackey to the Contra Costa County Redevelopment Successor Agency Oversight Board, as the appointee representing employees of the former Contra Costa County Redevelopment Agency.
3.) REQUESTED that the City of Pittsburg, the County Superintendent of Schools, and the Chancellor of the California Community Colleges, each appoint a member to the Contra Costa County Redevelopment Successor Agency Oversight Board by March 20, 2012.
2nd Motion Approved ALL IN FAVOR
Appointments by the Board of Supervisors to Oversight Boards for other redevelopment successor agencies located in Contra Costa County cities:
DIRECTED that each District Supervisor will recommend to the Board of Supervisors appointments to redevelopment successor agency oversight boards located in cities within that Supervisor’s District. If a city is in two Supervisorial Districts, the two Supervisors will work collaboratively to recommend appointments to the redevelopment successor agency oversight board located in that city. Appointees of the Board of Supervisors to city redevelopment successor agency oversight boards must be Contra Costa County residents and reside in the District of the Supervisor who made the recommendation for appointment.
3rd Motion Approved ALL IN FAVOR:
DIRECTED that the public member seat on the Contra Costa County Redevelopment Successor Agency Oversight Board be included in the Maddy Book.