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Home My Public Portal About2011.210 (09-20-11) CITY RESOLUTION NO. 2011.210 A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND LYNWOOD REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF A CONDITIONAL COMMUNITY REMITTANCE FUNDING AGREEMENT BY AND BETWEEN THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY PROVIDING FOR THE TRANSFER OF TAX INCREMENT REVENUE TO THE CITY IN AN AMOUNT NOT TO EXCEED THE AMOUNT OF THE COMMUNITY REMITTANCE REQUIRED UNDER AB 1X 27 WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety Code sections 33000 et seq.), the City Council of the City of Lynwood ("City") created the Redevelopment Agency of the City of Lynwood ("Agency") to serve as the redevelopment agency within the City; and WHEREAS, the Agency has been responsible for implementing the Redevelopment Plans for the Project Area A, adopted on July 10, 1973 by Ordinance No. 945 of the City Council, as said plan has been amended from time to time ("Project Area "A"") and the Alameda Redevelopment Project Area, adopted on November 3, 1975 by Ordinance No. 993 of the City Council, as said ptan has been amended from time to time ("Alameda Project Area") which results in the allocation of taxes from Project Area "A" and the Alameda Project Area to the Agency for purposes of redevelopment (the "Alameda Project Area" and Project Area "A" are hereby referred to collectively as the "Project Areas"); and WHEREAS, as part of the 2011-2012 State budget bill, the California Legislature enacted, and the Governor signed, companion bills AB 1X 26 and AB 1X 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB 1 X 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and WHEREAS, participation in the Alternative Voluntary Redevelopment Program requires the City to remit specified annual amounts to the county auditor-controller ("Community Remittance"); and WHEREAS, the California Director of Finance has notified the City that its Community Remittance for Fiscal Year 2011-2012 is Two Million Five Hundred Eighty Two Thousand Dollars ($2,582,685); and WHEREAS, California Health and Safety Code Section 34194.2 provides that the City may enter into an agreement with the Agency, whereby the Agency will annually transfer tax increment revenue to the City, in an amount not to exceed the amount of the Community Remittance for such fiscal year, for the purpose of financing activities within the Project Area related to the Agency's goals ("Agreement"); and WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the State of California on July 18, 2011 (California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861), challenging the constitutionality of AB 1X 26 and AB 1X 27 on behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement; and WHEREAS, on August 11, 2011, the Supreme Court agreed to take the case and issued an order for the immediate stay of enforcement of AB 1 X 26 in part and AB 1 X 27 in its entirety; and WHEREAS, on August 17, 2011, the Supreme Court modified its order to clarify that Health and Safety Code Sections 34161 through 34169.5, enacted by AB 1 X 26, and Health and Safety Code Section 34194(b)(2), enacted by AB 1 X 27, are not stayed ("Court's Stay"); and WHEREAS, the Agency and the City desire to enter into a funding agreement, effective on the condition that the Supreme Court orders that the Court's Stay be lifted or modified in a manner that permits the Agency to enter the agreement, to establish a yearly obligation of the Agency, beginning in Fiscal Year 2011-2012, to transfer tax increment revenues to the City in an amount not to exceed the Community Remittance, on the condition that the Agency's transfer of tax increment revenues to the City and the City's payment of the Community Remittance will be made only if there is a final determination that AB 1 X 26 and AB 1 X 27 are constitutional and the City adopts an ordinance electing to participate in the Alternative Voluntary Redevelopment Program; and WHEREAS, the City and Agency reserve the right, whether any Community Remittance has been paid, to challenge the legality of AB 1X 26 and AB 1X 27; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. Recitals The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Findin . Upon consideration of the facts set forth in the staff report accompanying this Resolution and other written and oral evidence presented to the City Council, the City Council finds that the transfer of tax increment revenue from the Agency to the City for the funding of the Community Remittance payment by the City will: (1) allow the Agency to remain in existence and continue to act to accomplish the Agency's goals in the Project Area and is in the best interests of the health, safety and welfare of the City's residents; and (2) free the City from committing general fund revenues or other City assets to pay the Community Remittance for any fiscal year. Section 3. Approval of Aqreement. The City Council hereby approves the Conditional Community Remittance Funding Agreement ("Agreement"), in substantially the form attached hereto as Exhibit A and incorporated herein by reference. The effectiveness of the Agreement shall be conditioned upon (i) an order of the Supreme Court that the Court's Stay be lifted or modified in a manner that permits the Agency to enter into the Agreement, to establish a yearly obligation of the Agency, beginning Fiscal Year 2011- 2012, to transfer tax increment revenues to the City in an amount not to exceed the Community Remittance; (ii) the Agency's transfer of tax increment revenues to the City and the City's payment of the Community Remittance will be made only if there is a final determination that AB 1X 26 and AB 1X 27 are constitutional; and (iii) the City adopts an ordinance electing to participate in the Alternative Redevelopment Program. The City Council authorizes and directs the City Manager to execute the Agreement on behalf of the City, subject to any minor changes as may be approved by the City Attorney. The City Manager is further authorized and directed to take such actions and execute such documents as may be necessary to carry out the obligations of the City under the Agreement. Section 4. Severabilitv. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 5. Certification. The City Clerk shall certify to the adoption of this Resolution. Section 6. Effective Date. This Resolution shall become effective upon its adoption. PASSED, APPROVED, AND ADOPTED this 20 day of September, 2011. C � - � Aide Castro, Mayor ATTEST: � -- Maria Quinonez, City lerk Roger L. aley, ity Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT: /'� � �� ,�� r , ;� .I` � , t . ,�7 t, �._ _ ��/ ��" , ��r �. � `� Yd Fred Galante, City Attorney Robert S. rre sst. City Manager/ Finance Dire or STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 20 day of September, 2011. AYES: COUNCIL MEMBERS FLORES, SANTILLAN-BEAS, MORTON AND CASTRO NOES: NONE ABSENT: COUNCIL MEMBER RODRIGUEZ ABSTAIN: NONE � � Maria Quinonez, City lerk STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2011.210 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 20 day of September, 2011. � �— Maria Quinonez, City lerk