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RES-ORA-0537 Obligation Payment ScheduleRESOLUTION NO.ORA -0537 A RESOLUTION OF THE ORANGE REDEVELOPMENT AGENCY ADOPTING A FIRST 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, the Agency desires make certain amendments to the Enforceable Obligation Payment Schedule by adopting a First Amendment thereto; and WHEREAS, by the adoption of this Resolution No. ORA -0537 the Agency, in an abundance of caution, is adopting a First 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 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. 2 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 First Amendment to the Enforceable Obligation Payment Schedule attached as Attachment No. 1 . However, the First 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 First 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 27 day of September, 2011. ATTEST: Mary E. Agency Clerk 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 27 day of September, 2011, by the following vote: AYES: DIRECTORS: Whitaker, Cavecche, Smith NOES: DIRECTORS: Dumitru, Bilodeau ABSENT: DIRECTORS: None ABSTAIN: DIRECTORS: None Mary E. gency Clerk 2