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HomeMy WebLinkAboutMINUTES - 04172012 - C.80RECOMMENDATION(S): APPROVE and AUTHORIZE County Counsel or her designee to execute on behalf of the County a form acknowledging a potential conflict of interest and consenting to Goldfarb & Lipman LLP representing Contra Costa County in connection with a loan of approximately $320,000 of HOME Investment Partnerships Act (HOME) funds to Habitat for Humanity East Bay. FISCAL IMPACT: There is no General Fund impact. HOME funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND: Over the years, the County has entered into contracts with Goldfarb for specialized services in connection with redevelopment projects and certain affordable housing matters. Because Goldfarb’s concentration of work is in affordable housing and development, it is not uncommon for the firm to have an attorney-client relationship with more than one party to a complicated APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 04/17/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Gayle B. Uilkema, District II Supervisor Contact: Kathleen Andrus, (925) 335-1824 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: April 17, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Kathleen Andrus, Deputy County Counsel, Kara Douglas, Department of Conservation and Development C.80 To:Board of Supervisors From:Sharon L. Anderson, County Counsel Date:April 17, 2012 Contra Costa County Subject:CONSENT TO REPRESENTATION BY GOLDFARB & LIPMAN LLP BACKGROUND: (CONT'D) affordable housing transaction. Attached is a letter from Goldfarb that requests that the County acknowledge and waive the potential conflicts that exist in a situation in which Goldfarb will represent the County by drafting documents evidencing a loan of HOME funds to Habitat for Humanity East Bay (Habitat), while, at the same time, representing Habitat in its dealings with the City of Walnut Creek. The letter sets forth the attorney-client relationships that could affect the firm’s representation of the County and makes it clear that different attorneys within Goldfarb will represent the County and Habitat. The proposed consent to Goldfarb’s dual role is attached to Goldfarb’s letter. In the proposed transaction, the County will loan approximately $320,000 of HOME funds to Habitat. Proceeds from the loan will be used by Habitat to construct a 10-unit single-family attached, affordable housing project near downtown Walnut Creek. Goldfarb’s role in representing the County will be to draft loan documents. The loan documents will be reviewed by the County Counsel’s office and approved as to form. Staff for the Conservation and Development Department have advised that they do not object to the potential conflict and recommend its waiver. CONSEQUENCE OF NEGATIVE ACTION: Goldfarb would not be able to continue to represent either the County or Habitat in connection with the project. The result would likely be increased costs for the County and a delay in the completion of the transaction. ATTACHMENTS Attachment