Loading...
HomeMy WebLinkAboutOB Agenda Item 3OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: MEMBERS OF THE'OVERSIGHT BOARD FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL DATE: AUGUST 28, 2012 SUBJECT: OVERSIGHT BOARD LEGAL COUNSEL Background: On July 24, 2012, the Oversight Board continued an Agenda Item discussing the hiring of counsel to the Oversight Board to the next meeting, and instructed staff to bring a resolution with a budget and scope of work to be determined by the Oversight Board. Discussion: Questions regarding the hiring of independent legal counsel to represent the Oversight Board have raised concerns by Agency staff about the financial impact of paying for such services given that the Successor Agency's administrative costs are limited by the statutory allowances. While establishing a cap on the Successor Agency's administrative cost allowance, ABx1 26 did not specify which costs must be paid from the administrative cost allowance and which costs could be separately placed on the ROPS. AB 1484 partially fills that void and does so in a manner generally consistent with the ROPS and administrative budgets adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Oversight Board. Consequently, the availability and source of funds to pay for Oversight Board legal counsel remains uncertain. However, AB 1484 explicitly permits an oversight board to direct a successor agency to provide additional legal or financial advice independent from successor agency staff and authorizes the oversight board to contract with the county or other public or private agency for administrative support. The new legislation does not, however, prescribe the requirements, process or funding source for the provision of such outside legal services. Though the Oversight Board specifically asked staff for a "resolution" addressing Oversight Board counsel, staff's review of other Oversight Boards shows that a resolution is typically adopted once counsel to the Oversight Board has been selected. AGENDA ITEM 3 Page 1 Oversight Board Legal Counsel August 28, 2012 Based on the Board's direction, staff looked into various ways for providing legal counsel to the Board. This investigation included discussions with other cities, and city attorneys from other cities. Based on that analysis, staff suggests the following process: 1. Staff has prepared lthe attached Request for Proposal (RFP) for the Board's review, comments and approval; 2. Direct staff to distribute the RFP through the League of California Cities website and the California City Attorney's "listserv" which is regularly viewed by municipal law practitioners; and 3. Select a two or three member subcommittee to review responses to the RFP, conduct interviews with the most qualified candidates and return to the full Board with a recommendation on legal representation. Alternatively, the subcommittee could make recommendations for the most qualified applicants to be interviewed by the full Board. The Board may also wish to fine,tune the proposed process. The Board could also authorize staff to choose and contract with an attorney, without the Board's input (although this is not recommended). Cost of Legal Representation Staff believes the potential cost of legal representation for the Board to be approximately $12,000 - $20,000 annually. Actual cost will be more accurately predicted once staff has solicited proposals for Oversight Board counsel Staff is recommending that this cost be included as a line item on a future Administrative Budget, provided that staff is able to find sufficient capacity in the Administrative Budget. It is not certain whether the Department of Finance will approve or reject such an approach. Recommendation: That the Oversight Board approve the form of the Request for Proposal and select a subcommittee to review the proposals, conduct interviews and make a recommendation to the full Oversight Board for the appointment of Legal Counsel. Prepared and approved by: Barbara Leibold, City Attorney /Successor Agency Counsel 1. Request for Proposal AGENDA ITEM 3 . Page 2 REQUEST FOR PROPOSAL, (RFP) /REQUEST FOR QUALIFICATIONS (RFQ) FOR LEGAL SERVICES FOR THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE Under AB 1x26 (Chapter 5, Statutes of 2011), an Oversight Board was established to oversee the actions of the Successor Agency for the dissolved Redevelopment Agency of the City of Lake Elsinore (Successor Agency). The Oversight Board is seeking the services of an attorney to serve as Legal Counsel to the Oversight Board. The term of the engagement would be for the remainder of fiscal year 2012-2013. The contract could be extended from year to year until the Oversight Board completes its work and is dissolved or is merged with other oversight boards in Riverside County in 2016 as required under AB 1 X 26. Either party could terminate the engagement with 30 days prior written notice. Interested firms should have experience advising public bodies on the Brown Act, Political Reform Act and the Public Records Act, public contracting, public finance, and redevelopment funded development projects and activities, as well as loans and property dispositions. The selected Legal Counsel would advise the Board and be supported by Successor Agency staff, and would be expected to work closely with counsel from the various taxing entities with appointments to the Board or who receive property tax revenues. The Oversight Board members are as follows: Mayor Brian Tisdale, Chairman (City of Lake Elsinore — Mayor's appointment) Dr. Roger Schultz, Vice Chairman (Superintendent/President Mt San Jacinto Community College District — Community College District appointment) Mr. Justin Carlson, Board Member (City of Lake Elsinore — Employee Union Member) Mr. Dave Oster, Board Member (President, Storm Baseball — County Board of Supervisor's appointment) Ms. Genie Kelley, Board Member (County Board of Supervisor's member of the public appointment) Ms. Erin Lillibridge, Board Member (Administrator District Fiscal Services — County Superintendent of Schools appointment) Director Phil Williams, Board Member (EVMWD appointment) Request for Proposal /Request for Qualifications Page 2 Due to conflicts of interest, the Legal Counsel and its firm can not be in an adversary position with the agencies that appointed the Oversight Board members, nor can it represent private developers under existing contracts with the prior dissolved Redevelopment Agency of the City of Lake Elsinore for redevelopment projects which have not yet been completed. Any law firm currently under contract with the agencies that appointed the Oversight Board members and the other taxing entities may apply, but it is desirable that the Legal Counsel be independent from such agencies. For firms that represent agencies in litigation matters only, it is anticipated that the applicable entity would waive any conflict to allow for Oversight Board to select such firm. Per AB 1x 26, the Successor Agency is responsible for the cost of any legal services to be provided to the Oversight Board. As such, the selected Legal. Counsel will be required to enter into a Legal Services Agreement. A sample of the agreement will be provided to interested counsel The scope of the services of the ,Legal Counsel would include, but is not limited to, the following: • Advise the Board on legal authority and liability for actions taken in the ordinary course of business. • Review and advise the Board on the recommendations from Successor Agency staff regarding contracting issues. • Review and advise the Board on recommendations from Successor Agency staff on refinancing matters, overseeing completion of redevelopment projects, and disposition of property and other assets. • Provide advice on legislative matters which may affect the Board (exclusive of lobbying). • Represent the Board in connection with any inquiry, investigation, audit or other proceedings of state regulatory agencies. • Represent the Board in any litigation brought by or against or otherwise involving the Board, or assist the Board in contracting for specialized litigation counsel and overseeing outside counsel's work. • Engage in any other legal matter reasonably requested by the Board. i Experience /Qualifications: The Legal Counsel must have knowledge and experience in the following areas of law: Brown Act, Political Reform Act, Public Records Act, contracts, and bond financing, lending, and redevelopment law. and experience in the other areas of public law would also be desirable. Request for Proposal/Request for Qualifications Page 3 Submittal Content: 1) A one -page cover letter with the name and contact information for the proposed lead attorney, 2) Description of the qualifications and experience of the proposed lead attorney and any associates to be assigned to'work for the Board in the areas of law listed above. 3) Three client references. 4) List of current hourly rates for each attorney. and support staff proposed to be assigned to work for the Board. Submittal Procedures Please submit your proposal by U.S. Mail to i Justin Carlson City of Lake Elsinore 130 S. Main Street Lake Elsinore, California 92530 1 Proposals may also be submitted via e-mail to Icarl son (a)lake- elsinore.org. All inquiries should be directed to Justin Carlson at (951) 674 - 3124. Proposals may be accepted up to the time the selection of counsel is made. Three members of the Board willlconduct a review and evaluation of all applicants and make recommendations to the Board. The Board reserves the right to reject any and all proposals and to interview, solicit and evaluate candidates through processes other than the process initiated by this RFP.