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6.4.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> April 23, 2012 <br /> SUBJECT <br /> Agreement for Professional Services between City as Successor Agency and Craig <br /> Labadie to Provide Legal Services to Redwood City Oversight Board <br /> RECOMMENDATION <br /> By Motion Authorize City Manager to Execute Agreement For Professional Services To <br /> Provide Oversight Board With Legal Services of Craig Labadie. <br /> BACKGROUND <br /> AB x1 26, the Dissolution Act, dissolved the Redwood City Redevelopment Agency <br /> (RDA) effective February 1, 2012, and mandated that the City, if it elected to become <br /> the Successor Agency, wind down the affairs of the RDA. The City elected to become <br /> the Successor Agency and has been taking the requisite actions under the law to <br /> effectuate the RDA's dissolution. An important job of the Successor Agency is to <br /> provide an accounting to the Oversight Board as to the on-going financial commitments <br /> of the Successor Agency as a result of RDA agreements and financial obligations. <br /> ANALYSIS <br /> The Dissolution Act requires the Successor Agency and the Oversight Board to take <br /> numerous actions very quickly, such as adopting the first Recognized Obligation <br /> Schedule (ROPS) by April 15 and a second ROPS quickly thereafter for the second half <br /> of 2012. There are parts of the new law that are not clear and legal advice is desirable <br /> for both the Successor Agency and the Oversight Board. The City Attorney's <br /> Department served as general counsel to the former Redwood City RDA, and now <br /> serves as the legal counsel to the Successor Agency. Because the City Attorney's <br /> Department represents these entities, it has an ethical conflict of interest such that it <br /> cannot also serve as the legal counsel to the Oversight Board. At its March 29, 2012 <br /> meeting, the Oversight Board indicated its interest in having Craig Labadie serve as <br /> legal counsel to the Oversight Board and on April 12, 2012, affirmed its consent to a <br /> professional services agreement between the City as Successor Agency and Labadie. <br /> FISCAL IMPACT <br /> The hourly rate of the designated attorney is $215 an hour and the agreement provides <br /> for some cost-sharing of common items among those Oversight Boards who are also <br /> employing Mr. Labadie. The costs legal services costs are identified in the ROPS with <br /> an initial budget of $24,000 and an amount shall be set in the second ROPS for the <br />