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HomeMy WebLinkAboutOB Item No 6 Legal Council Services 09-23-2014OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: CHAIRMAN OSTER AND MEMBERS OF THE OVERSIGHT BOARD FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL DATE: SEPTEMBER 23, 2014 SUBJECT: OVERSIGHT BOARD LEGAL COUNSEL SERVICES Recommendation It is recommended that the Oversight Board consider and direct staff as to ongoing legal services to the Oversight Board and take one of the following actions: a) Extend the Legal Services Agreement, as amended, to June 30, 2015 by approving and adopting Resolution No. OB- 2014 -007 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING AMENDMENT NO. 2 TO OVERSIGHT BOARD LEGAL SERVICES AGREEMENT; b) Extend the Legal Services Agreement subject to different terms as directed by the Oversight Board; c) Discontinue general counsel services and direct staff to retain legal counsel on an as needed basis as determined by the Oversight Board; or d) Direct staff to prepare a Request For Qualifications to identify candidates to provide legal services to the Oversight Board. Background On May 28, 2013, the Oversight Board approved a Legal Services Agreement with attorney Phillip Barry Greer. The term of the Agreement commenced on June 1, 2013 and expired on May 31, 2014. Exhibit "B" to the Agreement sets forth the fees to be paid for general legal services as follows: "Greer shall be compensated for the performance of General Legal Services by way of a retainer in the amount of $2,000 per month; provided, however, in the event the Board cancels one or both of its regularly scheduled meetings in any month, the retainer for that month Page 1 Amendment No. 2 to Oversight Board Legal Service Agreement September 23, 2014 shall be reduced to $1,000. In the event the Board changes its regularly scheduled meetings to a quarterly basis, the Parties agree to engage in good faith negotiations to reevaluate and establish an appropriate and fair retainer to be paid for General Legal Services." At the February 25, 2014 meeting, the Oversight Board adopted a quarterly meeting schedule and approved Amendment No. 1 to the Legal Services Agreement amending Exhibit "B" to provide for compensation for General Legal Services to $1000 per quarter. Fees for Oversight Board Legal Counsel services are paid from the Successor Agency's administrative cost allowance calculated and capped in accordance with the Dissolution Act. Discussion At the February 25, 2014 meeting, the Oversight Board directed staff prepare an item for consideration at this Oversight Board meeting to discuss future ongoing legal services. Oversight Board staff is requesting direction from the Board as to whether it wants to continue to retain legal counsel and, if so, whether it desires to extend the existing Legal Services Agreement, as amended, or take a different action. Four alternative actions are provided for in the Recommendation Section of this Report. If the Board elects to direct staff to prepare a Request For Qualifications, staff will require direction from the Oversight Board on the following: scope of work, selection criteria, selection process and provision of legal services during the RFQ process. Prepared by: Barbara Leibold, Successor Agency Counsel Attachment: Resolution No. Ob- 2014 -007 A Resolution Of The Oversight Board To The Successor Agency Of The Redevelopment Agency Of The City Of Lake Elsinore Approving Amendment No. 2 To Oversight Board Legal Services Agreement. Page 2 RESOLUTION NO. OB- 2014 -007 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING AMENDMENT NO. 2 TO OVERSIGHT BOARD LEGAL SERVICES AGREEMENT WHEREAS, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ( "Oversight Board ") has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former Redevelopment Agency of the City of Lake Elsinore in accordance with the California Health and Safety Code; and WHEREAS, pursuant to Health and Safety Code Section 34179(n), the Oversight Board may in furtherance of its duties under the Dissolution Act direct the Successor Agency to provide additional legal advice beyond what is given by the Successor Agency staff; and WHEREAS, the Oversight Board approved a Legal Services Agreement with attorney Phillip Barry Greer for a term commencing June 1, 2013 and expiring May 31, 2014 with fees for general legal services based upon the then bi- monthly regular meeting schedule of the Board; and WHEREAS, on February 25, 2014, the Oversight Board approved Amendment No. 1 to the Legal Services Agreement revising the compensation schedule consistent with the Board's revised quarterly meeting schedule; and WHEREAS, The Oversight Board desires to extend the Legal Services Agreement for an additional one -year term. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The Board authorizes the Chairman to execute an Amendment No. 2 extending the term of the Agreement to June 30, 2015 subject to all of the terms and conditions as set forth in the Legal Services Agreement as amended by Amendment No. 1. Said Amendment No. 2 shall be immediately effective. SECTION 3. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable. The OVERSIGHT BOARD RESOLUTION NO. OB 2014 -_ Page 2 Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 23rd day of September, 2014 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Dave Oster, Chairperson Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore APPROVED AS TO FORM: Phillip Greer, Oversight Board Counsel ATTEST: Virginia J. Bloom, Oversight Board Secretary