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CITY COUNCIL FINANCE COMMITTEE <br /> March 18, 2011 <br /> 8:15 a.m. — 9:45 p.m. <br /> San Leandro City Hall <br /> 835 E. 1a`" Street <br /> San Leandro, California <br /> (Sister Cities (iallcr■ ) <br /> HIGHLIGHTS <br /> Committee Members: Mayor Cassidy, Councilmember Gregory, Councilmember Souza <br /> City Staff Present: City Manager Hollister, Assistant City Manager Marshall, Finance <br /> Director Vesely, Community Development Director Sims, Public Works <br /> Director Bakaldin, City Engineer Joseph, Deputy Finance Director <br /> Rodriguez, Budget & CDBG Manager Liao, Compliance Manager Perini, <br /> Accountant II Galvin, Administrative Assistant III Perez <br /> Public Present: Gordon Galvan, Dale Reed, Dave Johnson, Corina Lopez <br /> The meeting was called to order at 8:19 a.m. <br /> 1. Discussion Regarding FY 2011 -12 Budget Development <br /> Finance Director Vesely provided on update on the recent actions taken by the CaIPERS Board <br /> Investment Committee. The decision to not change the assumed rate of return on their portfolio <br /> was good news to cities as it will not negatively impact rates. <br /> 2. Discussion Regarding FY 2011 -12 Redevelopment Agency Budget <br /> Community Development Director Sims provided a presentation on the highlights and impact of <br /> two bills, AB101 and SB77, which have gone before the Legislature and would consequently <br /> eliminate Redevelopment Agencies (RDA). As of March 17, 2011, neither of the bills had been <br /> acted upon. The bills would prohibit the RDAs from entering into further financial agreements <br /> or contracts; and would allow for City of San Leandro to act as a successor agency. There would <br /> be no protection for unobligated programs or contracts. Although the successor agency would <br /> receive an administration allowance to manage the existing obligations, there would not be <br /> enough funding to maintain current staffing. Sims has proposed a contingency plan to maintain <br /> some staffing. The League of California Cities has indicated there will likely be a lawsuit should <br /> the Governor be successful in eliminating the local RDAs. <br /> Councilmember Gregory questioned if the State can retroactively take RDA funding; Sims stated <br /> that he has heard the State may go back to January 2011. Mayor Cassidy as well as <br /> Councilmember Souza stated their concern in approving the contingency plan at this time when <br /> the budget process has not yet been completed. Mayor Cassidy requested staff to provide <br /> information on the cost of service if contracted out. <br /> 1 <br />