HomeMy WebLinkAboutMINUTES - 02152005 - C68 TO. BOARD OF SUPERVISORS ��.••.s LContra
FROM: Silvano B. Marchesi, County CounselCosta
ry 15
February 2005
DATE: ,
'4 COUIZ
SUBJECT: Consent to Joint Representation by Orrick,Herrington County
& Sutcliffe I k
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
CONSENT to joint legal representation of Contra Costa County and City of Hercules by Orrick, Herrington
& Sutcliffe. This legal firm seeks permission to continue to represent the County as bond counsel,while also
representing the the Hercules Redevelopment Agency on redevelopment issues that could negatively impact the
County's interests.
APPROVE and AUTHORIZE County Counsel or his designee to execute the attached acknowledgment of
conflicts of interest and to consent to joint representation.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On November 30, 1983 the Hercules City Council adopted the Redevelopment Plan for the Dynamite
Redevelopment Project. In connection with the adoption of the Redevelopment Plan,the County and the Hercules
Redevelopment Agency entered into a November 23, 1983 agreement providing assurances regarding the County's
share of tax increment limitation. As part of that Agreement and subsequent amendments thereto, the County and
the Agency agreed that the Agency would be permitted to incur indebtedness up to $94 million,which is the total
amount of tax increment it was authorized to receive under its original Redevelopment Plan.
The Redevelopment Agency for the City of Hercules is currently considering an amendment to its
Redevelopment Plan. The Agency wants to increase the limit on cumulative tax increment revenue the Agency
may collect from the Dynamite Project area from $94 million to $750 million; eliminate the time limit to incur debt
in the Dynamite Project Area; and combine the debt limit from the Dynamite Project Area with another
redevelopment project area, known as Project Area No. 2. The Agency and County staff are in the process of
attempting to negotiate an amendment to the tax increment agreement that will ensure that the County continues to
receive a fair share of taxes from this area.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
-------------------------------------- RECOMMENDATION OF COUNTY ADMINISTRATOR
COMMENDATION OF BOARD COMMITTEE
,APPROVE OTHER
SIGNATURE(S): Al
ACTION OF BO ON "APPROVE AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND
CORRECT COPY OF AN ACTION TAKEN AND
UNANIMOUS(ABSENT %��yjL,. ) ENTERED ON THE MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
AYES: NOES:
ABSENT: ABSTAIN:
CONTACT:Lara Delaney,Management Analyst ATTESTED /.� aoS
(335-1097) JOHN SWEETEN,CLERK O E BOARD
OF SUPERVISORS AND COUNTY
ADMINISTRA OR
CC: County Administrator
Attn:Jason Crapo B PUTY
Attn:Lara Delaney
County Counsel
Orrick,Herrington&Sutcliffe(via County Counsel)
Consent to Joint Legal Representation
February 15, 2005
Page 2 of 2
Orrick, Herrington& Sutcliffe serves as bond counsel to both the County and to the Hercules Redevelopment
Agency. The Redevelopment Agency has asked Orrick, Herrington& Sutcliffe to provide it with legal services in
analyzing the potential impacts to the Agency's bonding programs of the proposed amendments to the Agency's
redevelopment plans and to the Agency's tax increment agreement with the County. As part of this work, attorneys
from Orrick, Herrington& Sutcliffe would participate in meetings with County officials to discuss these issues.
The Agency's proposed amendments could negatively impact the County's interests. Attached is a letter from
Orrick, Herrington& Sutcliffe describing the conflict and requesting the County's acknowledgment and consent.
The County Administrator's Office has advised that it does not obj ect to the conflict and recommends
waiver.
SLA/jh
1AJOANNIsla\orrick bd memo.wpd
4�
P-i C C.1 n
"NIE C-MMIC-11"SUHLDINN.'G
405
U
John H. Knox
(415)773-5626
jknox@orrick.com
January 20, 2005
VIA E-MAIL - SMARCH@CC.CCCOUNT Y.US
ORIGINAL BY U.S. MAIL
Silvano-Marchesi, Esq.
County Counsel
County of Contra Costa
651 Pine Street, 9th Floor
Martinez, CA 94553
Re: Representation of the Redevelopment Agency of the City of Hercules
Dear Mr. Marchesi:
As I have discussed with Jason Crapo from the CAO's office, out firm serves as bond
counsel to the Redevelopment Agency of the City of Hercules (the "Agency"). The Agency has
requested us to provide legal services in analyzing the potential impacts to the Agency's bonding
programs of proposed amendments to the Agency's redevelopment plans and to the Agency's fiscal
agreement with the County of Contra Costa (the "County"). In furtherance of this work,we have
been requested to Participate in meetings with County officials to discuss these issues. Although we
are not acting as a negotiator for the Agency in these matters,we will be expected by the Agency to
raise issues during the discussions that may impact the Agency's bonding programs and that could
be adverse to the County's interests with respect to tax revenues pledged as security for the Agency's
bonds. This matter is unrelated to any matter on which my firm currently represents or has
represented the County;however-, the respective interests of the County and the Agency in this
matter may be adverse.
In order for my firm to undertake the Agency's representation on the matter under these
circumstances,we need a written waiver of any potential conflict of interest between the County and
the Agency with regard to this -matter and consent to my firm representing the Agency in the matter.
We understand that the County's Board of Supervisors will consider whether to authorize
you to grant this waiver and consent to my firm's representation of the Agencv in this matter.
If the Board so approves, please date and sign the enclosed copy and return it to me at your
earliest convenience.
��e
0
oRRICK
Silvano Marchese
January 20, 2005
Page 2
Thank you very much for your understanding and cooperation on this matter.
Sincerely,
John H. Knox
AGREED:
Date: 2005.
COUNTY OF CONTRA COSTA
By:
County Counsel
cc: Jason Crapo - jacra@cao-cccounty.us
Michael A. Sakamoto -mike.sakamoto@ci.hercules.ca.us
Alfred A. Cabral, Esq. —mcabral@pacbell.net