RES-ORA-0542 Obligation Payment ScheduleRESOLUTION NO.ORA -0542
A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY ADOPTING A
SECOND AMENDMENT TO THE ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE AS
REFERRED TO IN SECTION 34169(G) OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT
LAW.
WHEREAS, the Orange Redevelopment Agency (the "Agency ") is a community
redevelopment agency organized and existing under the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.; herein referred to as the
CRL ") and has been authorized to transact business and exercise the powers of a
redevelopment agency pursuant to action of the City Council of the City of Orange (the "City
Council "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry
out the Redevelopment Plan for the Orange Merged Project Area ( "Redevelopment Project ")
which was adopted by and through a series of ordinances of the City Council; and
WHEREAS, the Redevelopment Plan sets forth a plan for redevelopment of the
Redevelopment Project consistent with the CRL and the policies and standards of the General
Plan of the City; and
WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by
Assembly Bill X1 26 and Assembly Bill X1 27 (together, the "2011 Redevelopment
Legislation "), which laws were drafted to become effective when signed by the Governor on
June 28, 2011; and
WHEREAS, Part 1.85 provides for the statewide dissolution of all redevelopment
agencies as of October 1, 2011, and further provides that upon such dissolution that a
successor agency will administer the enforceable obligations of all redevelopment agencies
and otherwise wind up the agencys' affairs, all subject to the review and approval of
oversight committees; and
WHEREAS, notwithstanding the provisions of Part 1.85, Part 1.9 provides that a
redevelopment agency may continue in operation if a city that includes a redevelopment
agency adopts an ordinance agreeing to comply with and participate in the Alternative
Voluntary Redevelopment Program established in Part 1.9 (the "Program "); and
WHEREAS, upon the finding and determination that 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, the City Council elected to comply with
and participate in the Program by the adoption of Ordinance No. 15 -11 on August 23, 2011
the "Ordinance "), in order to allow the Agency to continue in operation and perform its
functions; and
WHEREAS, the validity, passage, and applicability of the 2011 Redevelopment
Legislation is the subject of judicial challenge(s), including the action brought by the California
Redevelopment Association ( "CRA ") and the League of California Cities in their own capacity
and on behalf of their members: California Redevelopment Association, et al v. Ana Matosantos,
et al (the "CRA Action "); and
WHEREAS, the California Supreme Court (the "Court") issued an order on August
11, 2011 in the CRA Action directing the parties to show cause why the relief sought in the
CRA Action should not be granted and established a schedule designed to facilitate a
decision before January 15, 2012 (the "Original Order "). Pending a decision in the CRA
Action, the Original Order stayed the effectiveness of certain portions of the 2011
Redevelopment Legislation and appears to preclude the Agency from taking specified
actions, while permitting the Agency to make payments on "enforceable obligations" (as
defined by those sections not stayed in Part 1.8), even though the City Council has adopted
the Ordinance; and
WHEREAS, on August 17, 2011, the Court modified the Original Order relating to
whether redevelopment agencies are required to adopt a schedule of those "enforceable
obligations" that require payments to be made through the end of calendar year 2011
Enforceable Obligation Payment Schedule "). Notwithstanding its modification of the
Original Order, it remains unclear whether an agency in a city that has opted in to the
Program must still adopt a Enforceable Obligation Payment Schedule by August 28, 2011;
otherwise, a redevelopment agency may not have the ability to make a payment on its
enforceable obligations other than payments required to meet obligations with respect to
bonded indebtedness; and
WHEREAS, on August 23, 2011, via Resolution No. ORA -0536, the Agency
adopted an Enforceable Obligation Payment Schedule and reserved the
right to amend it from time to time, as necessary; and
WHEREAS, on September 27, 2011, via Resolution No. ORA -0537, the Agency
adopted a First Amendment of the Enforceable Obligation Payment Schedule and reserved
the right to amend it from time to time, as necessary; and
WHEREAS, the Agency desires make certain amendments to the Enforceable
Obligation Payment Schedule by adopting a Second Amendment thereto; and
WHEREAS, by the adoption of this Resolution No. ORA -0540 the Agency, in an
abundance of caution, is adopting a Second Amendment to the Enforceable Obligation
Payment Schedule based on the definition of an "enforceable obligation" of those sections of
Part 1.8 not stayed by the Court and reserves the right to amend it from time to time, as
necessary, for the purpose of ensuring that it is able to meet its commitments under
enforceable obligations pending the outcome of the Court's decision in the CRA Action; and
2
WHEREAS, the Agency has duly considered all other related matters and has
determined that the Agency's adoption of this Resolution is in the best interests of 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.
NOW, THEREFORE, the Board of Directors of the Orange Redevelopment
Agency resolves, finds and determines, on the basis of the facts set forth in the agenda report
presented to it and any testimony received at the meeting at which this matter was
considered, 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. Without acknowledging that it is required to do so, the Agency hereby adopts
the Second Amendment to the Enforceable Obligation Payment Schedule attached as
Attachment No. 1. However, the Second Amendment to the
Enforceable Obligation Payment Schedule shall only be applicable to and binding on the
Agency to the extent that Part 1.8 of the Agency is applicable to the Agency and requires the
adoption of a Second Amendment to the Enforceable Obligation Payment Schedule. To the
extent that Part 1.8 is not applicable to the Agency, whether because of the City's enactment
of the Ordinance or for any other reason, the Enforceable Obligation Payment Schedule, as it
may be amended from time to time, shall not be binding on or control the Agency's
payments on or performance of its obligations.
Section 3. The Agency's Executive Director is hereby authorized and directed to
evaluate potential amendments to the Enforceable Obligation Payment Schedule from time to
time as may be appropriate, and to recommend to the Agency Board the adoption of those
amendments necessary for the continued payment on and performance of enforceable
obligations.
Section 4. The Agency's Executive Director is further authorized and directed to post the
Enforceable Obligation Payment Schedule on the Agency website and to notify the Orange
County Auditor - Controller, the State Department of Finance, and the Controller of the State
concerning this Resolution, the Enforceable Obligation Payment Schedule, and its online
publication.
Section 5. This Resolution shall in no way be construed as requiring the Agency or the
City to abide by the 2011 Redevelopment Legislation in the event the 2011 Redevelopment
Legislation is found unconstitutional or otherwise legally invalid in whole or in part, nor
shall this Resolution effect or give rise to any waiver of rights or remedies the Agency or
City may have, whether in law or in equity, to challenge the 2011 Redevelopment
Legislation. This Resolution shall not be construed as the Agency's or City's willing
acceptance of, or concurrence with the 2011 Redevelopment Legislation; nor does this
Resolution evidence any assertion or belief whatsoever on the part of the Agency that the
2011 Redevelopment Legislation is constitutional or lawful.
Section 6. The effective date of this Resolution shall be the date of its adoption.
3
ADOPTED this 10" day of January, 2012.
ATTEST:
Mary E genc lerk
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the l O day of January,
2012, by the following vote:
AYES: DIRECTORS: Whitaker, Smith, Cavecche, Dumitru, Bilodeau
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
Mary E. y, Agency . er
The enforceable obligation schedule was passed by a vote of 5 -0 with the followingabstentionsduetopotentialconflictsofinterest:
Mayor Cavecche — Line item 34;
Councilmember Whitaker — Line items 29 and 55;
Councilmember Dumitru — Line items 32 and 33;
Councilmember Bilodeau — Line items 18, 19, 20, 25, 26, 27, 28, 31, 32, 33, 35, and 41.
M