THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA

MEMORANDUM 15

DATE: DECEMBER 17, 2009 AD0000

TO: CRA/LA BOARD OF COMMISSIONERS

FROM: BRUCE D. ACKERMAN, CHAIRMAN

RESPONSIBLE PARTY: PATRICIA FRANCISCO, DIRECTOR OF HUMAN RESOURCES

SUBJECT: SALARY ADJUSTMENT FOR INTERIM CHIEF EXECUTIVE OFFICER CALVIN E. HOLLIS, TO $223,256 EFFECTIVE DECEMBER 1, 2009

RECOMMENDATION

That the CRA/LA Board of Commissioners, subject to City Council review and approval, approve a salary adjustment for Interim Chief Executive Officer Calvin E. Hollis to $223,256 per year effective December 1, 2009.

SUMMARY

At its meeting of November 19, 2009, the Board of Commissioners appointed Mr. Calvin E. Hollis as Interim Chief Executive Officer (“CEO”) effective December 1, 2009. The action was necessitated due to the resignation of former CEO Ms. Cecilia V. Estolano and taken in accordance with the CRA/LA Bylaws. The appointment of Mr. Hollis as Interim CEO was subsequently approved by the City Council on November 25, 2009.

At its Closed Session held on December 3, 2009, the Board of Commissioners discussed a salary adjustment for Mr. Hollis for assuming the duties and responsibilities of the CEO. The Board recommended setting the annual salary of the Interim CEO at $223,256 effective December 1, 2009. The City of Los Angeles’ Executive Employee Relations Committee (“EERC”), on December 8, 2009, approved the Board’s recommendation.

The salary adjustment is based on the following:

• The salary level is within the salary range established in 2003 for this position. The salary range established for the CEO position is $175,000 - $250,000, which reflects the market rate range for the CEO position of a large urban redevelopment agency. • The salary is less than the salary rate of the former CEO ($225,000). • CRA/LA considers guidance from the City regarding salary adjustments for interim CEO. The City’s Administrative Code provides that a person who receives a temporary appointment as Interim General Manager shall receive a salary at a bi-weekly rate that is either fifteen percent (15%) higher than the salary of the position’s highest paid subordinate or is equal to the bi-weekly rate of the prior incumbent, whichever is less. (See City of LA’s Administrative Code Section 4.3.22 (c). Currently, the salary of highest APPROVE THE SALARY ADJUSTMENT FOR INTERIM CEO CALVIN E. HOLLIS AT $223,256 EFFECTIVE DECEMBER 1, 2009 2

paid ranking subordinate, Chief Operating Officer (COO), is $188,940; however, that rate will increase effective January 1, 2010 to $194,136.

RE

NOVEMBER 19, 2009 – APPOINTMENT OF MR. CALVIN E. HOLLIS AS INTERIM CHIEF EXECUTIVE OFFICER

SOURCE OF FUNDS

This is a budgeted position in the CRA/LA’s administrative budget.

PROGRAM AND BUDGET IMPACT

Approval of this action is in conformance with the CRA/LA’s organizational structure and budget.

ENVIRONMENTAL REVIEW

The proposed action does not constitute a “project” as defined by the Environmental Quality Act (CEQA).

BACKGROUND

On November 19, 2009, the Board appointed Mr. Calvin E. Hollis as Interim CEO effective December 1, 2009. Mr. Hollis joined CRA/LA in February 2009 and served as Deputy Chief of Operations—Real Estate and Economic Development until his appointment as Interim CEO. It is anticipated that Mr. Hollis will serve as Interim CEO until a permanent CEO is appointed by the Board of Commissioners.

Mr. Hollis is uniquely qualified to serve in the capacity of Interim CEO. Prior to joining the CRA/LA, Mr. Hollis served as Managing Principal at Keyser Marston. Mr. Hollis managed the Los Angeles office since joining the firm in 1982. Mr. Hollis served as principal real estate advisor to public and institutional clients ranging in size from the City of Los Angeles to the City of Santa Cruz, for more than twenty years. In his role as advisor, he was often asked to reconcile the needs of public and institutional clients with the economic realities of private real estate market.

Mr. Hollis possesses a strong understanding of the particular requirements of the public sector in implementing development projects. He has a keen ability to understand the local public environment, the resources available to the public sector and the alternative ways of bringing such resources to bear which allows for a successful negotiation of a wide variety of publicly sponsored real estate transactions. Projects have included Colorado in Pasadena, Grand Avenue in Downtown Los Angeles, the new Downtown in Orange and the . Mr. Hollis’ experience in a wide variety of communities and institutions, with the most active real estate development groups in the West Coast highly qualifies him to serve as the CRA/LA’s Interim CEO.

APPROVE THE SALARY ADJUSTMENT FOR INTERIM CEO CALVIN E. HOLLIS AT $223,256 EFFECTIVE DECEMBER 1, 2009 3

Since joining the CRA/LA, Mr. Hollis has played a critical role in overseeing and managing the CRA/LA’s real estate and economic development programs. Specifically, he has been responsible for formulating and implementing the CRA/LA’s economic development strategies while directing and assisting staff concerning real estate transactions and economic development matters. His duties also include supervising and overseeing the operations of the Real Estate Department including but not limited to acquisition and relocation, appraisal services, and property management. Additionally, Mr. Hollis has been working in collaboration with the Regional Administrators to develop region-specific real estate and economic development programs.

______Bruce D. Ackerman

The Interim CEO has a conflict on this item and was not involved in the Board's action on this matter.