HomeMy WebLinkAboutCC Res 6184 2011-09-26RESOLUTION NUMBER 6184
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AUTHORIZING AND APPROVING THE EXECUTION AND
DELIVERY OF A TRANSFER AGREEMENT PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34194.2 AND TAKING
CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
RECITALS
A. The Redevelopment Agency of the City of Seal Beach (the
"Agency ") is a redevelopment agency in the City, created pursuant to the
Community Redevelopment Law (Part 1 (commencing with Section 33000) of
Division 24 of the California Health and Safety Code) (the "Redevelopment
Law ") .
B. The Seal Beach City Council (the "City Council ") adopted
Ordinance No. 780, approving and adopting the redevelopment plan for the
Riverfront Project Area, and from time to time, the City Council has amended
such redevelopment plan. The Agency is undertaking a program to redevelop
the Project Area.
C. AB X1 26 was signed by the Governor of California on June, 29,
2011, making certain changes to the Redevelopment Law, including adding Part
1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section
34170) to Division 24 of the California Health and Safety Code. Commencing
upon the effectiveness of AB X1 26, AB X1 26 suspends most redevelopment
agency activities and, among other things, prohibits redevelopment agencies
from incurring indebtedness or entering into or modifying contracts. Effective
October 1, 2011, AB X1 26 dissolves all existing redevelopment agencies and
redevelopment agency components of community development agencies,
designates successor agencies to the former redevelopment agencies, and
imposes numerous requirements on the successor agencies and subjects
successor agency actions to the review of oversight boards established pursuant
to the provisions of Part 1.85.
D. AB X1 27 was signed by the Governor of California on June 29,
2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the
California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary
Redevelopment Program (the "AVRP ") whereby, notwithstanding the provisions
of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue
to exist and carry out the provisions of the Redevelopment Law upon the
enactment, prior to the applicable deadline established in Part 1.9, by the city
council of the city which includes that redevelopment agency (the "Participating
City "), of an ordinance to comply with Part 1.9.
E. Part 1.9 requires a Participating City to make specified annual
remittances to the applicable county auditor - controller, who shall allocate the
remittances for deposit into a Special District Allocation Fund, for allocation to
specified special districts, and into the county Educational Revenue
Augmentation Fund, for allocation to educational entities.
F. To participate in the AVRP, in addition to adopting the ordinance
described in Recital D, above, Part 1.9 provides that the Participating City must,
by November 1, 2011, notify the applicable county auditor - controller, the
Controller of the State of California (the "State Controller "), and the Department
of Finance of the State of California (the "Department of Finance ") that the
Participating City agrees to comply with the provisions of Part 1.9. The
Participating City's agreement to make the remittances provided for under Part
1.9 is a precondition to continue redevelopment pursuant to Part 1.9.
Resolution Number 6184
G. Part 1.9 provides that for fiscal year 2011 -12, a Participating City
shall remit to the applicable county auditor - controller an amount equal to the
amount determined by the Director of Finance of the State of California (the
"Director of Finance ") for the redevelopment agency pursuant to a formula set
forth in Part 1.9, which formula utilizes information contained in the State
Controller's redevelopment agency 2008 -09 annual report. The amount
represents the redevelopment agency's proportionate share of the sum of
$1,700,000,000. The initial amount determined by the Director of Finance is
subject to recalculation and reduction in the event the Participating City timely
files an appeal in accordance with Health and Safety Code Section
34194(b)(2)(L).
H. For fiscal year 2012 -13 and each fiscal year thereafter, a
Participating City's remittance shall be in an amount calculated by the
Participating City in accordance with the requirements of Part 1.9, subject to
adjustment based on audit and verification by the Director of Finance, the State
Controller and the applicable county auditor - controller. Part 1.9 provides that on
or before November 1 St of each year, commencing November 1, 2012, a
Participating City shall notify the Department of Finance, the State Controller,
and the applicable county auditor - controller of the remittance amount calculated
by the Participating City.
I. Pursuant to the provisions of Part 1.9, a Participating City shall pay
one -half of the total remittance amount for a fiscal year on or before January 15
of that year and shall pay the remaining one -half of the remittance amount on or
before May 15 of that year.
J. A Participating City making remittances pursuant to Part 1.9 may
use any funds available to the City and not otherwise obligated for other uses.
K. Pursuant to Health and Safety Code Section 34194.2, a
Participating City and the redevelopment agency in that Participating City may
enter into an agreement whereby the agency will transfer a portion of its tax
increment to the Participating City in an amount not to exceed the annual
remittance required that year pursuant to Part 1.9.
L. The City Council adopted Ordinance No. 1612, on August 8, 2011,
pursuant to Health and Safety Code Section 34193, to become a Participating
City in the AVRP for the purpose of allowing the Agency to continue to exist and
carry out the provisions of the Redevelopment Law, notwithstanding the
provisions of Part 1.8 and 1.85.
M. The California Redevelopment Association and League of
California Cities have filed a lawsuit in the Supreme Court of California alleging
that AB X1 26 and AB X1 27 are unconstitutional. On August 11, 2011, the
Supreme Court of California decided to hear the case and set a briefing schedule
designed to allow the Supreme Court to decide the case before January 15,
2012. On August 11, 2011, the Supreme Court also issued a stay order (the
"Stay Order "), which was subsequently modified on August 17, 2011. Pursuant to
the modified Stay Order, the Supreme Court granted a stay of all of AB X1 27
(i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating
to the determination of cities' fiscal year 2011 -12 remittance amounts) and a
stay of a portion of AB X1 26. With respect to AB X1 26, Part 1.85 was stayed in
its entirety, but Part 1.8 was not stayed.
N. In the event the Stay Order is lifted and the Supreme Court upholds
AB X1 26 and AB X1 27, the City desires to participate in the AVRP so that the
Agency may continue to exist and carry out the provisions of the Redevelopment
Law.
O. In the event the Stay Order is lifted and the Supreme Court upholds
AB X1 26 and AB X1 27, the City and the Agency desire to enter into an
Resolution Number 6184
agreement (the "Transfer Agreement ") to provide for the Agency's transfers
(each, a "Transfer") of a portion of its tax increment to the City, pursuant to
Health and Safety Code Section 34194.2, such that the total amount of the
Transfers in any fiscal year shall be equal to be the Annual Remittance for that
fiscal year.
P. The Transfer Agreement will not have any effect unless and until
the Supreme Court lifts or modifies the Stay Order in a manner such that the
prohibitions in Part 1.8 do not apply to the Agency and the Agency is permitted to
perform under the Transfer Agreement pursuant to Health and Safety Code
Section 34194.2 or other provisions of law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a
substantive part of this Resolution.
Section 2. The Transfer Agreement, in the form presented and on file
with the City Clerk, is hereby approved. The Mayor, or in the Mayor's absence,
the Mayor Pro -Tem, acting singly, is hereby authorized and directed to execute
and deliver, for and in the name of the City, the Transfer Agreement in
substantially that form, with such changes therein as the Mayor (or the Mayor
Pro -Tem, as the case may be) may approve (such approval to be conclusively
evidenced by the execution and delivery thereof).
Section 3. The adoption of this Resolution is not intended and shall not
constitute a waiver by the City of any right the City may have to challenge the
legality of all or any portion of AB X1 26 or AB X1 27 through administrative or
judicial proceedings.
Section 4. This Resolution and the Transfer Agreement have been
reviewed with respect to applicability of the California Environmental Quality Act
( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14,
Sections 15000 et seq., hereafter the "Guidelines" ), and the City's environmental
guidelines. The City Council has determined that neither this Resolution nor the
Transfer Agreement Ordinance is a "project" for purposes of CEQA, as that term
is defined by Guidelines Section 15378. Specifically, this Resolution and the
Transfer Agreement constitute the creation of government funding mechanisms
or other government fiscal activities which do not involve any commitment to any
specific project which may result in a potentially significant physical impact on the
environment. (Guidelines Section 15378(b)(4)). In addition, this Resolution and
the Transfer Agreement constitute organizational or administrative activities that
will not result in a direct or indirect physical change in the environment.
(Guidelines Section 15378(b)(5)). Therefore, because neither the Resolution
nor the Transfer Agreement is a "project," they are not subject to CEQA's
requirements. Further, even if either this Resolution or the Transfer Agreement
were deemed a "project" and therefore subject to CEQA, each would be covered
by the general rule that CEQA applies only to projects that have the potential to
cause a significant effect on the environment. (Guidelines Section 15061 (b)(3)).
As an organizational or administrative activity or the creation of government
funding mechanisms or other government fiscal activities which do not involve
any commitment to any specific project which may result in a potentially
significant physical impact on the environment, neither this Resolution nor the
Transfer Agreement has the potential to cause a significant effect on the
environment and is therefore exempt under this general rule. Further, it can be
seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment, and thus neither this Resolution nor
the Transfer Agreement is subject to CEQA. (Guidelines Section 15061(b)(3)).
Resolution Number 6184
Section 5. The officers of the City are hereby authorized and directed,
jointly and severally, to execute and deliver any and all necessary documents
and instruments and to do all things which they may deem necessary or proper in
order to consummate the transaction contemplated by, effectuate the purposes
of this Resolution and the Transfer Agreement, and any such actions previously
taken by such officers are hereby ratified, confirmed and approved.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 26th day of September , 2011 by the following vote:
AYES: Council Members ` A&n
NOES: Council Members
ABSENT: Council Members �
ABSTAIN: Council Members
ATTEST:
P /* VC I �e W �rkk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6184 on file in
the office of the City Clerk, passed, approved, and adopted by the Seal Beach
City Council at a regular meeting held on the 26th day of September , 2011.
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