HomeMy WebLinkAboutRDA Res 11-13 2011-09-26RESOLUTION NUMBER 11-13
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SEAL BEACH APPROVING THE EXECUTION AND
DELIVERY OF A TRANSFER AGREEMENT PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34194.2 AND TAILING
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 Riverfront 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 11 -13
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 p'ay 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 andlSafety Code Section 34193, to become a Participating City
in the AVRP for the pu',rpose 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 1.8Iwas 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 11 -13
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 REDEVELOPMENT AGENCY 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 Secretary of the Agency, is hereby approved. Each of the Chair, the
Vice Chair and the Executive Director of the Agency (each, an "Authorized
Officer'), acting singly, is hereby authorized and directed to execute and deliver,
for and in the name of the Agency, the Transfer Agreement in substantially that
form, with such changes therein as the Authorized Officer executing the
document may approve (such approval to be conclusively evidenced by the
Authorized Officer's execution and delivery thereof).
Section 3. The adoption of this Resolution is not intended and shall not
constitute a wavier by the Agency of any rights the Agency 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 "). The Agency 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 11 -13
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Section 5. The Authorized Officers and all other officers of the Agency
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 Redevelopment Agency of the
City of Seal Beach this , 26th day of September , 2011 by the following vote:
AYES: Agency Members
NOES: Agency Members �� Q
ABSENT: Agency Members
ABSTAIN: Agency Members
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Aeetari/City
STATE OF CALIFORNIA }
COUNTY OF ORANGE; } SS
CITY OF SEAL BEACH! }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing Resolution is the original copy of Resolution Number 11 -13
on file in the office of I the City Clerk, passed, approved, and adopted by the
Redevelopment Agency of the City of Seal Beach at a meeting held thereof on
the 26th day of September , 2011
i
Secretary /City berk
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