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2012-01-04 Joint CC HABOC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL AND HOUSING AUTHORITY BOARD OF COMMISSIONERS (HABOC) MEETING WEDNESDAY- - JANUARY 4, 2012- -7:02 P.M. Mayor /Chair Gilmore convened the meeting at 7:51 p.m. ROLL CALL — Present: Councilmembers /Commissioners Allen, Bonta, deHaan, Johnson, Tam and Mayor /Chair Gilmore — 6. Absent: None. ORAL COMMUNICATIONS None. AGENDA ITEM (12 -017 CC) Resolution No. 14643, "(1) Determining It Will Serve as a Successor Agency to the Community Improvement Commission of the City of Alameda ( "CIC "); (2) Electing Not to Retain the Housing Assets and Functions Previously Performed by the CIC; (3) Authorizing Assumption by the Housing Authority of the City of Alameda ( "Housing Authority ") of the Rights, Powers, Assets, Liabilities, Duties, and Obligations Associated with the Housing Activities of the CIC; and (4) Authorizing the City Manager to Enter Into an Agreement with the Housing Authority to Fund Costs Associated with the Transferred Housing Activities." Adopted; and (12 -001 A HABOC) Resolution No. 836, "(1) Agreeing to Assume the Rights, Powers, Assets, Liabilities, Duties, and Obligations Associated with the Housing Activities of the Community Improvement Commission of the City of Alameda; and (2) Authorizing the Executive Director to Enter Into an Agreement with the City of Alameda to Fund Costs Associated with the Transferred Housing Activities." Adopted. The Housing Development and Programs Manager gave a brief presentation. Mayor /Chair Gilmore stated redevelopment agencies would cease to exist on February 1St, but agreements for 400 redevelopment agencies would not suddenly come into existence on February 2nd The Housing Development and Programs Manager stated agreements would exist because of each agency's enforceable obligation schedule. In response to Mayor /Chair Gilmore's inquiry, the Housing Development and Programs Manager stated the County Auditor - Controller would need to audit each agency's enforceable obligation schedule by July 1st Councilmember /Commissioner Tam inquired whether a trust fund would be Special Joint Meeting Alameda City Council and Housing Authority Board of Commissioners January 1, 2012 automatically established by ABX1 26, to which the Housing Development and Programs Manager responded in the affirmative. Mayor /Chair Gilmore stated on February 1St, responsible agencies would start expending funds in the normal course of business; hopefully, reimbursement would be set in place on July 1St The Housing Development and Programs Manager stated an administrative budget needs to be presented for each successor agency by February; the legislation has some inconsistencies; last year, an obligation schedule was done which predicted payment obligations pursuant to enforceable obligations; the next one would be due March 1St, which would cover January 1St to June 30th; schedules would need to be approved by the Oversight Board that would review work of the successor agency; the Oversight Board would not come into existence until May 1St; suggested amending Section 7 to read: "This resolution shall take effect and be enforced as of the deadline for adoption of this resolution established pursuant to State law as may be amended from time to time ". Councilmember /Commissioner Tam's inquired whether the City could recover money, to which the City Manager /Executive Director responded the money has not been submitted yet. Mayor /Chair Gilmore stated the State was not hitting budget targets before the ruling; it appeared that automatic cuts would go into effect; the State will not receive $1.7 billion due to legislation being declared unconstitutional. The City Manager /Executive Director stated that the State has centralized what the payments would be but has created chaos throughout the system. Vice Mayor /Commissioner Bonta stated things are moving very quickly; that he wants to ensure that the City does not do something it will regret later; inquired what precautions would be taken if another legislative remedy caused the City's successor agency role to not be advantageous, to which the City Manager /Executive Director responded the resolutions could always be amended. In response to Vice Mayor /Commissioner Bonta's inquiry, Rafael Mandelman, Burke, Williams, and Sorensen, stated January 13th is the drop -dead date for cities to opt out of becoming a successor agency. Councilmember /Commissioner Johnson stated a significant amount of affordable housing has been created by redevelopment agencies; inquired whether affordable housing would also cease. The Housing Development and Programs Manager responded hopefully, housing advocates would do something about having a permanent income stream fund for Special Joint Meeting Alameda City Council and Housing Authority Board of Commissioners 2 January 1, 2012 affordable housing; stated the need would not go away. Councilmember /Commissioner Johnson stated the City receives allocations from the Association of Bay Area Governments (ABAG); without said money, houses cannot be built regardless of the allocations. The City Manager /Executive Director stated redevelopment has been the primary economic development program in California; without economic development, there is no money for schools or work force housing; that he predicts the State would replace some functions but would do so in a centralized, clunky way rather than in a flexible, nimble, and local manner. Councilmember /Commissioner deHaan inquired how other municipalities are handling the issue, to which the Housing Development and Programs Manager responded Alameda would be the first to act on the matter. The City Manager /Executive Director stated that redevelopment pays for police officers, half of the Mayor, Council, and Auditor's salary, which otherwise would need to come from the General Fund; everything would have to made up from the General Fund; the City has never honeycombed redevelopment. Mr. Mandelman stated the landscape is rapidly changing and the law is drafted poorly; there will be many messy situations over the next months; the City would be taking on responsibility to manage some of the chaos by becoming the successor agency; management would be done by an unfriendly Oversight Board. Vice Mayor /Commissioner Bonta inquired whether another path or second best approach might be adequate but would not be as good as the one recommended tonight. Mr. Mandelman responded tonight's recommendation is the only way to go if the City wants to be a successor agency; stated otherwise, the Governor would appoint County residents. Mayor /Chair Gilmore stated Council has tried for a number of years to get Alameda Point from the Navy so that the City could have local control and have a say in how things move forward. The Housing Development and Programs Manager stated the City would want local control over the Alameda Landing Disposition and Development Agreement; exercising local control over the project would be important. Councilmember /Commissioner Tam stated the City would have local control but would lose its ability to generate local revenue through redevelopment; the City would be more dependant upon private developer funding for infrastructure and meeting affordable Special Joint Meeting Alameda City Council and Housing Authority Board of Commissioners 3 January 1, 2012 housing marketing objectives; the City would have to find some way to be more marketable and needs to fight fiercely. The Acting City Attorney /Legal Council stated a lot of new ideas would be forthcoming. Mr. Mandelman stated the California Redevelopment Association and League of California Cities are actively focusing on State goals but would include goals important to Alameda such as Base reuse and housing. In favor of resolutions: Robb Ratto, Park Street Business Association, and Jon Spangler, Alameda. Mayor /Chair Gilmore expressed appreciation to staff for acting so quickly on the matter; stated the recommendation is viable. Vice Mayor /Commissioner Bonta inquired whether tonight's recommendation would be the only way to exercise local control, to which Mr. Mandelman responded that he thinks so. In response to Councilmember /Commissioner deHaan's inquiry, Mr. Mandelman stated the deadline for dissolution is February 1St; up to that time, the legislature would have an opportunity to come up with something that would work for communities that have bases that need to be redeveloped; the deadline for deciding whether to be a successor agency is January 13t" The Chief Operating Officer stated that she has a conference call scheduled for 8:30 a.m. tomorrow with base reuse communities. Councilmember /Commissioner Johnson moved adoption of the resolutions with noted amendment to Section 7. Councilmember /Commissioner Tam seconded the motion, which carried by unanimous voice vote — 6. ADJOURNMENT There being no further business, Mayor /Chair Gilmore adjourned the meeting at 8:37 p.m. Respectfully submitted, Lara Weisiger City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council and Housing Authority Board of Commissioners 4 January 1, 2012