Report Prepared by: Sierra Omlin, Economic Development Associate
Title
SUBJECT: Approval of an Agreement with Leibold McClendon & Mann, P.C. to Provide Special Council Legal Services to the City of Merced as Successor Agency
REPORT IN BRIEF
Considers approving an agreement with Leibold McClendon & Mann, P.C. to provide Special Council Legal Services to the City of Merced as the Successor Agency to the former Redevelopment Agency.
RECOMMENDATION
Successor Agency - Adopt a motion:
A. Approving an agreement with Leibold McClendon & Mann, P.C. for legal services, in a not to exceed amount according to the annual Successor Agency Recognized Obligation Payment Schedule (ROPS); and,
B. Authorizing the Executive Director or designee to execute the necessary documents; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2023/2024 ROPS Schedule.
DISCUSSION
The City of Merced elected to serve as the Successor Agency in July 2023. The City transitioned into the Successor Agency September 18th 2023.
The Successor Agency has several requirements mandated by AB x1 26 (the dissolution of redevelopment agencies) that require outside expertise. Leibold McClendon & Mann was the Successor Agency legal counsel when a Designated Local Authority (DLA) was created by the State of California. Staff would like Leibold McClendon & Mann to continue to serve the Successor Agency. Leibold McClendon & Mann will provide Special Counsel Legal Services to continue the attorney-client relationship with the Successor Agency of the Redevelopment Agency of the City of Merced.
Funding for the Successor Agency Consulting Services
January of each year the Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) to request funding for the following fiscal year. The ROPS is approved by the Successor Agency’s governing board, the Merced Countywide Oversight Board, and the California Department of Finance. After approval, the Redevelopment Property Tax Trust Funds (RPTTF) are distributed twice a year to the Successor Agency. Staff, counsel and the audit and non-audit accounting fees are paid for from the RPTTF allocated to the Successor Agency for administrative costs.
The Legal Services provided by Leibold McClendon & Mann would be covered by the RPTTF received by the Successor Agency, thus being no financial cost to the City for their work under this contract.
IMPACT ON CITY RESOURCES
No General Fund dollars are used.
ATTACHMENTS
1. Agreement with Leibold McClendon & Mann