RPVCCA_CC_SR_2012_01_17_I_Support_Of_Senate_Bill_659_Dissolution_Date_Of_RDACITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE MAYOR &CITY COUNCIL MEMBERS ~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION
TECHNOLOGY
JANUARY 17,2012
SUPPORT OF SENATE BILL 659 (PADILLA)TO EXTEND THE
DISSOLUTION DATE OF REDEVELOPMENT AGENCIES FROM
FEBRUARY 1,2012 TO APRIL 15,2012
CAROLYN LEHR,CITY MANAGER ~.
Ryan Mills,Senior Administrative Analyst
RECOMMENDATION
Authorize the Mayor to sign a letter supporting SB 659 and direct staff to transmit letter to
Senators Padilla and Wright.
BACKGROUND AND DISCUSSION:
On December 29,2011,the California Supreme Court largely upheld AB X1 26,the statute
dissolving redevelopment agencies;and struck down AB X1 27,the statute that
established the Voluntary Alternative Redevelopment Program,which would have allowed
redevelopment agencies to remain in operation as long as they made payments to the
State.The Court determined the RDA Dissolution Law was valid,finding that because the
Legislature had the power to create and regulate redevelopment agencies;it also had the
power to abolish them.As it currently stands,redevelopment agencies will be dissolved
on February 1,2011 and successor agencies will dismantle redevelopment operations by
disposing of assets,properties,leases,records,buildings and equipment,as well as laying-
off thousands of workers state-wide.
In response to the Supreme Court's ruling and deadline for the dissolution of
redevelopment agencies,on January 4,2012,the League of California Cities Board of
Directors met and authorized League staff to work with legislators,the Governor,
Community Redevelopment Association and other stakeholders on a proposal to pass
successor legislation in order to extend the February 1sl deadline for the elimination of
agencies so all parties can work on further legislation to address state and local goals for
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PROFESSIONAL!TECHNICAL SERVICES AGREEMENT FOR SERVICES
REGARDING THE INFORMATION TECHNOLOGY SYSTEM
January 17,2012
Page 2 of2
job creation,infrastructure development,affordable housing,Brownfield remediation,blight
removal,military base reuse,and many of the purposes of redevelopment agencies.
Senator Alex Padilla has championed a bill (SB 659)that would temporarily postpone the
February 1,2012 dissolution deadline in order to preserve the ability to develop a new job
creation and neighborhood renewal program.
Although the Court's decision should not be as detrimental to the City of Rancho Palos
Verdes,when compared with other cities with active redevelopment programs;as the City
does not have anyon-going redevelopment agency projects,the dissolution of
redevelopment agencies has invoked a maelstrom of legal questions,such as how to
successfully dissolve redevelopment agencies and transition to the appointed successor
agencies in a very limited amount of time,how to meet our funding obligations,and what
will be the impacts of the new law on city coffers.SB 659 would allow for critical time
needed to answer these questions by extending the dissolution date to April 15,2012.
Without legislative action postponing this deadline,a complicated and contentious process
would be initiated,as the City seeks to follow the myriad of guidelines in order to
successfully transition away from its redevelopment agency.
Attachments:
Draft Letter Supporting SB 659:Redevelopment Agency time extension
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January 12,2012
Senator Alex Padilla
State Capitol,Room 4038
Sacramento,CA 95814
RE:SB 659 (Padilla)Temporarily Postpone Dissolution of Redevelopment
Agencies -Notice of Support
Dear S~nator Padilla,
On behalf of the City of Rancho Palos Verdes,I would like to inform you that the
City is in Support to SB 659,a bill that would temporarily postpone the
scheduled February 1,2012 date to dissolve California's redevelopment
agencies.
Our city,as with the other more than 400 redevelopment agencies,have been
forced to navigate the legal waters in order to meet the obligations of ABX1 26 by
February 1,2012,since the California Supreme Court's ruling on December 29,
2011.The dissolution of redevelopment agencies has invoked a maelstrom of
legal questions,such as how to successfully dissolve redevelopment agencies
and transition to the appointed successor agencies in a very limited amount of
time,how to meet our funding obligations,and what will be the impacts of the
new law on city coffers.
SB 659 would allow for critical time needed to answer these questions by
extending the dissolution date to April 15,2012.As well,temporarily postponing
this February deadline will allow time for the Legislature and Governor to develop
a new job creation and neighborhood renewal plan,and to develop a solution
that ensures that schools and the State budget receive the funding intended by
the Legislature when they passed the redevelopment budget this past year.
Without this extension,successor agencies will be responsible for unwinding all
assets,properties,contracts,leases,records,buildings,and equipment of the
former redevelopment agencies,and laying off workers,as well as initiating a
complicated and contentious process,as the City seeks to follow the myriad of
guidelines in order to successfully transition away from its redevelopment
agency.
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Therefore,we would advocate that the Legislature support this legislation that
allows cities more time to analyze the impact and prepare a plan for the future
without redevelopment agencies.If you have any questions,please contact City
Manager Carolyn Lehr at (310)544-5202.
Sincerely,
Anthony Misetich
Mayor
City of Rancho Palos Verdes
Cc Senator Rod Wright
Assemblymember Bonnie Lowenthal
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