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HomeMy WebLinkAboutCC Reso No 2011-050 City Council ResoRESOLUTION NO. 2011-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO ENACT AN ORDINANCE WHEREBY THE CITY SHALL ELECT TO COMPLY WITH AND PARTICIPATE IN THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM CONTAINED IN PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE WHEREAS, the Redevelopment Agency of the City of Lake Elsinore ("Agency") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL"), and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City of Lake Elsinore ("City"); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan for the Rancho Laguna Redevelopment Project No. I, as amended, the Redevelopment Plan for Rancho Laguna Redevelopment Project No. II, as amended, and the Redevelopment Plan for Rancho Laguna Redevelopment Project No. III, as amended which were adopted by and through a series of ordinances of the City Council of the City; and WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code were added to the CRL by ABX1 26 and ABX1 27, which measures purport to become effective immediately. ABX1 26 and ABX1 27, which are trailer bills to the 2011-12 budget bills, were approved by both houses of the Legislature on June 15, 2011 and signed by the Governor on June 28, 2011; and WHEREAS, Part 1.85 of the CRL ("Part 1.85") provides for the statewide dissolution of all redevelopment agencies, including the Agency, as of October 1, 2011, and provides that, thereafter, a successor agency shall administer the enforceable obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the review and approval by an oversight committee; and WHEREAS, Part 1.8 of the CRL ("Part 1.8") provides for the restriction of activities and authority of the Agency in the interim period prior to dissolution to certain "enforceable obligations" and to actions required for the general winding up of affairs, preservation of assets, and certain other goals delineated in Part 1.8; and WHEREAS, the dissolution of the Agency would be detrimental to the health, safety, and economic well-being of the residents of the City and cause irreparable harm to the community, because, among other reasons, the redevelopment activities and projects made possible, implemented, and funded by the Agency are highly significant and of enduring benefit to the community and the City, and are a critical component of its future; and WHEREAS, Part 1.9 of the CRL ("Part 1.9") provides that a redevelopment agency may continue in operation if a city or county that includes a redevelopment agency adopts an CITY COUNCIL RESOLUTION NO. 2011-050 Page 2 of 4 ordinance agreeing to comply with and participate in the Alternative Voluntary Redevelopment Program established in Part 1.9 ("Program"); and WHEREAS, as a condition of the Agency's continued existence and operation of its redevelopment agency, the City is required to make certain annual remittances to the county auditor-controller pursuant to Chapter 3 of Part 1.9, beginning with a larger upfront remittance for the 2011-2012 fiscal year ("First Remittance"), to be paid in two equal installments on January 15, 2012 and May 15, 2012; and WHEREAS, the City expects it will have sufficient moneys and revenues to fund an amount equal to the City's payment of the First Remittance and further expects to have sufficient moneys and revenues to fund the subsequent annual remittances required by Part 1.9; and WHEREAS, the City's needs are such that it can commit to spend the funds received from the Agency pursuant to the Agreement to Transfer Tax Increment (defined below) to finance activities within the Redevelopment Project that are related to accomplishing the goals of the Redevelopment Project; and WHEREAS, the City intends to adopt the ordinance required by Part 1.9, in order to allow the Agency to continue in operation and perform its functions ("Ordinance"); and WHEREAS, the City intends to adopt the Ordinance and desires to forestall the dissolution of the Agency until November 1, 2011 to allow the City sufficient time to enact the Ordinance; and WHEREAS, the City and Agency desire to enter into an agreement pursuant to CRL Section 34194.2 whereby the Agency shall make an initial transfer of a portion of its tax increment to the City in an amount equal to the First Remittance, and thereafter to transfer amounts of tax increment equal to any subsequent remittance which the City is required to make to the county auditor-controller pursuant to the City's participation in the Program ("Agreement to Transfer Tax Increment"); and WHEREAS, the City is aware that the validity, passage, and applicability of ABX1 26 and ABX1 27 is the subject of a judicial challenge; and WHEREAS, the City, by the adoption of this resolution, does not represent, disclaim, or take any position whatsoever on the issue of the validity of ABX1 26 or ABX1 27, but rather the City seeks to comply with the Constitution and laws of the State of California, including Part 1.9, in order to preserve the ability of the Agency to continue to operate and thereby benefit the community; and WHEREAS, the City has duly considered all other related matters and has determined that the City's participation in the Program is in the best interests of the Agency, the City, and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. CITY COUNCIL RESOLUTION NO. 2011-050 Page 3 of 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The foregoing Recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. SECTION 2. Pursuant to CRL Section 34193(b), the City hereby expresses its intent to adopt the Ordinance to comply with Part 1.9. This resolution is that "nonbinding resolution of intent" referred to in CRL Section 34193(b) and shall be interpreted and applied in all respects in accordance with such section and Part 1.9, to the fullest extent permitted by law. SECTION 3. On or before October 1, 2011, the City Manager (or his designee) is hereby authorized and directed to notify the county auditor, the State Department of Finance, and the Controller of the State concerning the resolution, in accordance with Section 34193(b). SECTION 4. The City Attorney is hereby authorized to bring an action in the Superior Court pursuant to CRL Sections 33500 and 33501 to determine the validity of the Ordinance referred to in this resolution, or the validity of any bonds contemplated to be issued by the Agency or other material contracts of the Agency, or any findings of the City Council related thereto, upon the determination of the City Manager that such action is reasonably necessary or appropriate to facilitate the consummation of any Agency transaction for which governing board approval has been given. SECTION 5. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOJRRT regular meeting of the City Council of the City of Lake Elsinore, California, this 9th dt~~.. AGEE, M OR PROTEM CITY OF LAKE ELSI ORE tte t: hffp"~ VIRGINIA LOO CITY CLERK STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF LAKE ELSINORE }SS I, VIRGINIA BLOOM, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2011- 050 was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 9th day of August 2011, and that the same was adopted by the following vote: AYES: Council Members Tisdale, Hickman, Melendez, and Mayor Pro Tern Magee NOES: None ABSENT: None ABSTAIN: None V~&i Virginia J. loom City Clerk