THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA M E M O R A N D U M 6 DATE: JULY 20, 2006 AD0000 TO: FROM: RESPONSIBLE PARTY: SUBJECT: AGENCY COMMISSIONERS CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER DONALD R. SPIVACK, ACTING CHIEF OPERATING OFFICER JAY VIRATA, ACTING CHIEF FINANCIAL OFFICER AMENDMENT OF THE AGENCY S BYLAWS TO PROVIDE FOR THE ESTABLISHMENT OF ADVISORY COMMITTEES AND ADOPTION OF A RESOLUTION DEFINING THE ROLES, RESPONSIBILITITIES, AND OPERATING PROCEDURES OF THE POLICY REVIEW COMMITTEE AND THE FINANCE, AUDIT, AND BUDGET COMMITTEE RECOMMENDATIONS 1. That the Board consider and approve an amendment to the Agency s Bylaws to add a new Section 510 that would provide for the establishment of advisory committees and for their roles, responsibilities and operating procedures. 2. That the Board discuss and adopt a resolution, effective upon amendment of the Agency s Bylaws, defining new roles, responsibilities, and operating procedures for two existing CRA Board Standing Advisory Committees (Policy Review Committee and a renamed Finance, Audit, and Budget Committee) and eliminate the remaining CRA Board Standing Advisory Committee (Project Review Committee) SUMMARY California Health & Safety Code Section 33125 authorizes the Agency to make and amend bylaws that are not inconsistent with the provisions of the Community Redevelopment Law (Health & Safety Code section 33000 et. seq.) Agency Bylaws section 600 provides that the Bylaws may be amended with the approval of at least four members of the Board, but no amendment shall be adopted without seven days notice to Board members of the general nature of the amendment. The Agency s Bylaws do not expressly provide for the creation of Board committees and it would be in the best interests of the Agency to amend the Bylaws to so provide. Section 510, entitled Advisory Committees would be added to the Bylaws to read as follows: The Agency members may, from time to time, establish advisory committees consisting of less than a quorum of the membership of the Agency Board. The purpose, membership and administration of any such advisory committee so established shall be approved by the Agency Members. If this proposed amendment is acceptable to the Board, then it will be scheduled for final approval at the Board s next meeting. See Attachment A.
BOARD STANDING ADVISORY COMMITTEES 2 In addition, during the Agency Board s May 2006 retreat, the Board agreed on the need to reestablish a standing Policy Review Committee to review and assess policy issues prior to their presentation to the full Board as well as the need to establish a Budget and Operations Committee to oversee the preparation and administration of the Annual Budget and Work Programs and major amendments thereto, such as the annual Carryover Amendment, and on major matters affecting the issuance or administration of debts and assets. The Board directed the Chief Executive Officer to examine the issue and report back in 60 days with recommendations regarding these Board Standing Committees. Staff therefore recommends the following proposal and attached resolution (see Attachment B ) for discussion and approval: 1. Retain two of the CRA Board Standing Advisory Committees: the Policy Review Committee and Budget and Operation Committee. 2. The Policy Review Committee shall review existing Agency policies and frame and recommend any additional policies necessary for the Agency to fulfill its mission of creating jobs and housing. 3. Rename the existing Budget and Operations Committee to the Finance, Audits, and Budget Committee. The Finance, Audits and Budget Committee shall review and recommend proposals and procedures related to ensuring the Agency s performance, accountability and transparency. 4. Eliminate the existing Project Review Committee. I. Proposed Standing Advisory Committees Establish two standing advisory committees for the CRA Board: A. Policy Review Committee B. Finance, Audits and Budget Committee II. Committee Role and Responsibilities 1. Policy Review Committee Building on the Board resolution of July 15, 2004, the Policy Review Committee shall review existing Agency policies and frame and recommend any additional policies necessary for the Agency to fulfill its mission of creating jobs and housing. The Policy Review Committee s role is to advise and provide recommendations to the Board on the update or revision of existing Agency-wide policies and the formulation of new Agency-wide policies, and to make recommendations to the full Board relative to approving or adopting such policies and/or policy amendments that include the following: a. Updating existing CRA policies and the extent of application of such policies; b. Reviewing new and/or proposed CRA policies such as living wage, responsible contractor, equal benefit and service worker retention policies; and c. Reviewing and updating Project Area Committee (PAC) Formation and Election Procedures, PAC and Community Advisory Committee (CAC) bylaws, policies on relationships to Neighborhood Councils, etc.
BOARD STANDING ADVISORY COMMITTEES 3 2. Finance, Audits, and Budget Committee The Finance, Audits and Budget Committee shall review and recommend proposals and procedures related to ensuring the Agency s performance, accountability and transparency. The role of the renamed Finance, Audits and Budget Committee is to advise and provide recommendations to the Board on the preparation and administration of the Annual Budget and Work Programs and major amendments thereto, and on major matters affecting the issuance or administration of audits, debts, and assets as well as administrative policy issues that include the following: 3. Committee Staffing a. Annual Budgets; b. Asset management including loan portfolio; c. Financial reports including the Comprehensive Annual Financial Report (CAFR), Statement of Indebtedness (SOI), State Controller s Report, etc.; d. Internal and external audits; e. Finance Issues such as Debt Financing, Treasury, Underwriting Guidelines, etc.; f. Issuance and administration of debts and assets; g. Underwriting policies and guidelines; and h. Setting performance measurements. The CEO shall assign a CRA employee(s) to staff each Committee. The CEO shall also have the authority to modify that assignment from time to time as the roles of the Committees evolve and as staffing needs within the Agency change. 4. Committee Topics On a semi-annual basis, the Board shall review the progress of the Committees in implementing their respective charters as well as discuss and define the topics that the Committees will address in the succeeding six-month period with staff input. Based on discussions at the Agency Board s May 2006 retreat staff recommends that the Board direct the Committees to address the following issues within the first six months of their operation in order to provide staff critical guidance in the short-term: Policy Review Committee Job training, local hiring and workforce development. Delegation of approval authority to staff for repetitive actions of relatively small scale, scope and impact. Potential Guidance on suggested conditions for significant discretionary approvals for projects not receiving Agency assistance in strong market areas. Agency-wide affordable housing program/policy. Finance, Audit and Budget Committee Overseeing implementation of City Controller audit recommendations. Monitoring and recommending subjects for internal audits. Creating a process for establishing the Agency s strategic priorities to guide development of the Fiscal Year 2007-2008 budget.
BOARD STANDING ADVISORY COMMITTEES 4 Establishing performance measurements to guide evaluation of progress towards accomplishing the Agency s strategic priorities. After the Board has defined these and other matters, Staff will cull the list to identify the topics that conform to the Committee s charter for the semi-annual Committee agenda-setting discussions. Staff recommends that at that time the Board should also establish a deadline by which each topic is to be presented to the full Board for consideration in order for the Committee and staff to plan adequately the assignment of priorities and resources to the Committees tasks. If at any point a Committee identifies a topic that has not been defined by this process, the Committee shall present a proposal to the Board for approval. After receiving priorities from the Board, the Committees shall direct staff as to how to proceed with its analysis and development of recommendations including establishment of milestones and the level of public and other review and input. Staff shall report to the Committees on the priority issues at each meeting. The Committees shall then present to the Board by their respective deadlines a report containing a discussion of the alternatives for each significant point of discussion and a recommendation for action. While the Committees should discuss each issue thoroughly in order to develop a complete range of alternatives and make a thoughtful recommendation, the full Board shall be provided the opportunity to review the options and make a final decision. In addition, the Committees shall provide minutes of each of their meetings to the full Board following each Committee s meeting so that the Board is apprised of progress made, issues discussed and the nature of Committee s conclusion(s) and direction(s) to staff for further analysis. If a Committee believes that an issue is not ready for presentation to the full Board by the prescribed deadline, it shall submit a report on its progress and a request for approval of an extension in advance of the deadline. III. Committee Membership Each Committee shall be comprised of three (3) Board Commissioners. The Board Chair, in consultation with other Commissioners, shall directly appoint the Committee members and designate the initial Committee Chair. The Committee Members shall thereafter be appointed annually by the Board Chair following the Annual Meeting of the Board. The Committee member s tenure on the Committee shall also be concurrent with that Committee member s tenure on the CRA Board, unless reassigned by the Board Chair. IV. Meetings 1. Meetings to be Open and Public All meetings of the Board s standing Committees shall be open and public. All standing Committee meetings shall be publicly noticed and conducted in compliance with the Ralph M. Brown Act (Gov t Code 54950 et seq.) (the Brown Act ).
BOARD STANDING ADVISORY COMMITTEES 5 2. Regular meetings The CRA Board Committee meetings shall be held on a monthly basis. At each Committee s first meeting, the Committee shall set the time and place of its regular monthly meetings. 3. Special Meetings The Chair of the Committee may call special meetings at any time by delivering written notice to each Committee member and to each person or entity entitled by law to receive such notices. Such notice must be delivered personally or by mail at least 24 hours before the time of such meeting. The call and notice shall specify the time and place of the special meeting and the business to be transacted in compliance with the Brown Act. The Committee members shall consider no other business at such meetings. 4. Executive Sessions When appropriate, the Committee may hold executive sessions during a regular or special meeting concerning any matter permitted by law to be considered in executive (closed) session. 5. Quorum Two members of the Committee shall constitute a quorum for the purpose of conducting business, exercising its powers, and for all other legal purposes. 6. Public Comment Period All regular Committee meetings shall provide for an opportunity for the public to address the Committee members. RE July 15, 2004 - Board approval of a resolution to implement the creation of the CRA Board standing advisory committees. SOURCE OF FUNDS No Agency funds are required for this action. PROGRAM AND BUDGET IMPACT The recommended action is consistent with the proposed FY07 Work Program and Budget. Staff effort to carry out the work of the Committee is covered in Agency overhead. ENVIRONMENTAL REVIEW The proposed action does not constitute a "project" as defined by CEQA.
BOARD STANDING ADVISORY COMMITTEES 6 BACKGROUND From the mid 1980s to the mid 1990s, the CRA/LA Board of Commissioners had a number of standing committees including Project Review, Finance, and Housing Committees. The purpose of these committees was to review and make recommendations on the design and financing of major projects, to specifically examine and report on proposed housing projects as well as to consider and present major policy initiatives to the full Board. In 1995, the Board discontinued the committees due to the numerous meetings as well as delays in obtaining approvals for the projects under review. In July 2004, the Board resolved to establish three new standing advisory committees: the Policy Review, Budget and Operations, and Project Review Committees. It was anticipated that the Committees would improve efficiency and provide better policy direction, and that the guidelines proposed at that time would streamline the process and require fewer meetings. Following the appointment of new Commissioners in the summer of 2005, Committees were again suspended pending a review of their performance and effectiveness. On July 7, 2005, the Policy Review and the Budget and Operations Committees provided written reports to the Board of Commissioners, followed by a similar report from the Project Review Committee on October 20, 2005. In general, these reports concluded that although these committees are time-consuming and add another layer to Agency processes, they facilitate high-quality, in-depth discussion of policies, projects, and other issues. A November 2005 report to the Board on the Committees progress concluded that although they have demonstrated a number of accomplishments, their scope of work may not be sufficiently defined or enforced and some discussions may be duplicative. Cecilia V. Estolano, Chief Executive Officer There is no conflict of interest known to me that exists with regard to any Agency officer or employee concerning this action. Attachment A Text of Proposed Amendment to Agency s Bylaws Attachment B Resolution for the Establishment of the Policy Review Committee and the Finance, Audits, and Budget Committee Attachment C November 2005 Report on Committee Functions, Progress and Effectiveness