CC RES 2011-068 RESOLUTION NO. 2011-68
A RESOLUTION OF CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES,
CALIFORNIA, 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 Rancho Palos Verdes Redevelopment Agency (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 City Council (the "City Council") of the City of Rancho Palos Verdes
adopted Ordinance No. 190, approving and adopting the redevelopment plan for Project
Area No. 1, 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 a Voluntary Alternative Redevelopment Program
(the "VARP") 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
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into the county Educational Revenue Augmentation Fund, for allocation to educational
entities.
F. To participate in the VARP, 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.
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 1st 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. 524, on August 16, 2011, pursuant
to Health and Safety Code Section 34193, to become a Participating City in the VARP for
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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 VARP so that the Agency may
continue to exist and carry out the provisions of the Redevelopment Law.
0. 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 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 RANCHO PALOS
VERDES 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
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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)).
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.
Resolution No. 2011-68
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PASSED AND ADOPTED this 20th day of September, 2011.
M yor • omEtA,
ATTEST: -
74fridah
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2011-68 was duly and regularly passed and adopted by the said
City Council at regular meeting thereof held on September 20, 2011.
(61/e_CA_
City Clerk
Resolution No. 2011-68
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