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HomeMy WebLinkAboutStaff Report 5.A 03/19/2012 B-LU:t A e/n a' Itenni#5 A 385e DATE: March 19, 2012 TO: Members of the City Council FROM: John C. Brown, City Manager SUBJECT: Mayor's Appointments to the Oversight Board for the Successor Agency of the Former Petaluma Community Development Commission. RECOMMENDATION It is recommended that the City Council confirm the Mayor's appointments to the Oversight Board for the Successor Agency of the former Petaluma Community Development Commission (PCDC). BACKGROUND The Governor signed several budget-related bills in late June 2011, including AB xl 26 (The "Dissolution Act"), which eliminates redevelopment agencies, and AB xl 27(the "Voluntary Program Act"), which allows an agency to remain active if the City agrees to make annual payments to the County Auditor-Controller. The State Supreme Court reviewed both bills and determined that AB xl 26. is constitutional and AB x2 27 is unconstitutional, effectively eliminating all California Redevelopment Agencies on February 1, 2012. On January 9, 2012, the Council elected to become the Successor Agency to the former PCDC. The legislation requires the establishment of an oversight board for the Successor Agency by May 1, 2012. The Oversight Board will supervise the activities of the Successor Agency as they relate to dissolution of the former PCDC, and the enforcement of ongoing obligations. The Board will have.:a fiduciary responsibility to holders of enforceable obligations and the taxing entities that benefit from distribution of property taxes under this law. The Oversight Board is a seven-member body, which for Petaluma includes representatives of • The County of Sonoma (2 seats) • The Sonoma County Water Agency(1 seat) • The County Superintendent of Education (1 seat) • The Chancellor of the California Community Colleges (1 seat) • The City of Petaluma (2seats) Agenda Review: City Attorney___,_, Finance Director City.Manage r�/d The two City appointments are to be made by the Mayor. One of those appointments represents the City as the entity that established the former redevelopment agency. The other appointment represents the employees of the former redevelopment agency. This second appointment is to be made from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at the time it was dissolved. In Petaluma, that group is the Petaluma Professional and Mid-Management Association, which represents bargaining groups 4, 9, and 11. Unit 9, mid-level managers, represented the largest numbers of employees charged in whole or in part to the former agency at the time of its dissolution. DISCUSSION Although the legislation specifies that appointments be to be made by the Mayor, Petaluma's Charter requires that the Council approve Mayoral appointments, and so this matter is placed on the Council's agenda for consideration. I have discussed this matter with the Mayor, and his recommended appointments are as follows: Position 1: Mayor David Glass. The Mayor would further appoint Council Member Barrett, as his alternate. Position 2: Scott Duiven, Senior Planner, Former PCDC employee who is represented by Unit 9. The County and Water Agency Board have already made their appointments to the Oversight Board, as has the County Superintendent of Education. Once the Community College's appointment is made, successor agency staff will convene the meetings of the Oversight Board, as necessary, so that it may discharge its duties. FINANCIAL IMPACTS These Oversight Board members will not receive financial compensation for this appointment, thus there will not be a financial impact to the City of Petaluma related to this action. Staff costs, and the costs of materials provided to the Oversight Board in support of its responsibilities will be supported by tax increment funding earmarked for successor agency administration. ATTACHMENTS I. Resolution Page 2 ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA CONFIRMING APPOINTMENTS TO THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION WHEREAS, AB xl 26, as upheld by the California Supreme Court, eliminated all California redevelopment agencies as of February 1, 2012 and authorizes a Successor Agency overseen by an Oversight Board to wind down former redevelopment agency activities; and WHEREAS, on January 9, 2012, pursuant to Health and Safety Code Sections 34171(j) and 34173(e), the City Council of the City of Petaluma elected that the City would act as the Successor Agency to the former Petaluma Community Development Commission ('PCDC"), a redevelopment agency that was formed and existed pursuant to the California Community Redevelopment Law, Health and Safety Code Section 33000 et seq.; and WHEREAS, an Oversight Board for the Successor Agency, made up of representatives appointed by designated taxing entities, must be appointed by May 1, 2012; and WHEREAS, the Oversight Board will supervise the activities of the Successor Agency as they relate to dissolution of the former PCDC, and the enforcement of ongoing obligations; and WHEREAS, Health and Safety Code Section 34179(a) (2) & (7)provides that the mayor for the city that created the redevelopment agency shall appoint two members of the seven-member Oversight Board; and WHEREAS, the first mayoral appointee shall represent the City as the entity that established the former PCDC; and WHEREAS, the second mayoral appointee shall represent the employees of the former PCDC and is selected from the recognized employee organization representing the largest number of former PCDC employees employed by the Successor Agency at the time the PCDC was dissolved; and WHEREAS, for the City of Petaluma, the recognized employee organization representing the largest number of former PCDC employees is the Petaluma Professional and Mid-Management Association, which represents bargaining groups 4, 9, and 11, and Unit 9, mid-level managers, represented the largest numbers of employees charged in whole or in part to PCDC at the time of its dissolution; and WHEREAS, Mayor David Glass (the "Mayor") has appointed himself and Scott Duiven as the two City appointees to the Oversight Board, and has appointed Theresa Barrett as the alternate representative of the City as the entity that established the former PCDC. Page 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The Mayor's appointment of Mayor David Glass to the Oversight Board as the representative of the City as the entity that established the former Petaluma Community Development Commission is hereby confirmed. 2. The Mayor's appointment of Scott Duiven as the representative of the recognized employee organization representing the largest number of former PCDC employees is hereby confirmed. 3. The Mayor's appointment of Theresa Barrett as the alternate representative of the City as the entity that established the former PCDC is hereby confirmed. 4. If any provision, sentence, clause, section or part of this resolution is found to be invalid or unenforceable, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or parts. Page 4