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  Regular-General Government   # 30.       
Board of Supervisors Financial Services  
Meeting Date: 01/23/2018  
Brief Title:    County Redevelopment Successor Agency Oversight Board Update
From: Howard Newens, Chief Financial Officer, Department of Financial Services
Staff Contact: Chad Rinde, Assistant Chief Financial Officer, Department of Financial Services, x8050
Supervisorial District Impact:

Subject
Receive staff report on redevelopment successor agency consolidation to a County Oversight Board and select Board of Supervisors member to the County Oversight Board. (No general fund impact) (Newens)
Recommended Action
  1. Receive and file summary report on the redevelopment successor agency consolidation to a single County Oversight Board.
     
  2. Appoint a member of the Board of Supervisors to the County Oversight Board.
Strategic Plan Goal(s)
Operational Excellence
Reason for Recommended Action/Background
As part of the 2011 State Budget Act, and in order to protect funding for core public services at the local level, the California Legislature approved the dissolution of the state’s more than 400 Redevelopment Agencies (RDA). After a period of litigation, RDAs were officially dissolved as of February, 2012. In the County of Yolo, there were four recognized redevelopment agencies operated by each respective city, Davis, West Sacramento, Winters, and Woodland that were affected.

As a result of the elimination of the RDAs, property tax revenues that were previously allocated to RDAs to reduce blight are subsequently used to make payments on existing bonds, other obligations, and pass-through payments to local governments. The remaining property tax revenues that exceed the RDAs enforceable obligations are allocated to the county, cities, special districts, and school and community college districts.

To help facilitate the wind-down process at the local level, a Successor Agency (SA) was established in May, 2012 for each former RDA to manage existing redevelopment projects, make payments on enforceable obligations, and dispose of redevelopment assets and properties. In the County of Yolo, a successor agency was established for each City: Davis, West Sacramento, Winters, and Woodland.

Each Successor Agency has an Oversight Board (OB) that supervises its work.  The OB is comprised of representatives of the local agencies that serve the redevelopment project area: the city, county, special districts, and educational agencies. Oversight Board members have a fiduciary responsibility to holders of enforceable obligations, as well as to the local agencies that would benefit from property tax distributions from the former redevelopment project area.

Part of the dissolution of RDAs included a provision that prior to July 1, 2018, in a County that has more than one oversight board, the Auditor-Controller (which is a role of Chief Financial Officer) of the County would staff and perform start up duties to form a consolidated oversight board unless this responsibility is delegated to an existing oversight board. Staff from the County Department of Financial Services met with staff of the OBs in November, 2017 and none expressed a strong interest in taking this responsibility of forming and staffing the County OB from the Auditor-Controller. The Health and Safety Code section 34179(j) documents the required composition of board members and method for selection of the seven members of the consolidated OB as summarized below:
 
 #  Appointed By Plan to Fill Position
1 One member appointed from the county board of supervisors. Requested board of supervisors to select as part of this agenda item.
2 One member may be appointed by the city selection committee. DFS is working with Clerk of the Board to put the item before the next city selection committee meeting.
3 One member may be appointed by the special district selection committee. DFS is working with LAFCO. LAFCO has sent letters to all eligible special districts to vote for their member representative.
4 One member may be appointed by the county superintendent of education. DFS is sending a letter to the superintendent of education to request member appointment.
5 One member may be appointed by the chancellor of the California Community Colleges. DFS has received a letter on the Community College member.
6 One member of the public may be appointed by the County board of supervisors. DFS is working with the Clerk of the Board to prepare an advertisement for a public member to the committee.
7 One member of the recognized employee organization representing the largest number of successor agency employees in the County. DFS is requesting each successor agency to provide information on their employees represented by employee organizations to determine which organization will select the member.

Should a member not be appointed prior to June 15, 2018 or the position remains vacant for more than 60 days, the Health & Safety Code allows the Governor of the State of California to appoint a member to fill the vacancy.

After formation, the consolidated County Oversight Board (COB) is expected to meet between 1-2 times per year. The COB will be responsible primarily for approval of schedules of enforceable obligations and dispose of any remaining redevelopment assets and properties. As of the filing for the 2017-2018 recognized obligations schedules with the State of California Department of Finance, the successor agencies have the following target wind-down and obligations:
 
Successor Agency Name Obligations Balance as
of July 1, 2017
Date of Last Obligation
Davis $39,027,133 3/1/2037
West Sacramento $103,903,279 9/1/2046
Winters $24,048,559 8/31/2037
Woodland $18,704,334 12/31/2034
Collaborations (including Board advisory groups and external partner agencies)
The Department of Financial Services is collaborating with the following entities in order to form the County Oversight Board:
  • Board of Supervisors
  • Clerk of the Board
  • County Administrator's Office
  • Yolo LAFCO
  • Yolo Office of Education
  • California Community Colleges
  • City of Davis RDA Successor Agency
  • City of West Sacramento RDA Successor Agency
  • City of Winters RDA Successor Agency
  • City of Woodland RDA Successor Agency
Competitive Bid Process
Not applicable.

Fiscal Impact
Potential fiscal impact (see notes in explanation section below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $  
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
$0
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
The oversight board is required to be staffed by the Auditor-Controller of each County (Yolo Department of Financial Services) and the administrative cost of facilitating this board is being evaluated. As the board is expected to meet between 1-2 times per year, the cost is anticipated to be covered with existing staff resources; however DFS will be reviewing procedures issued from the State of California Department of Finance to recover the cost from the Redevelopment Property Tax Trust Fund. No additional budget is requested at this time.
Attachments
Att. A. Oversight Board Statute

Form Review
Inbox Reviewed By Date
County Counsel Phil Pogledich 01/17/2018 10:30 AM
Form Started By: crinde Started On: 12/07/2017 10:54 AM
Final Approval Date: 01/17/2018

    

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