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HomeMy WebLinkAboutORD 15-11 Alternative Voluntary Redevelopment ProgramORDINANCE NO. 15 -11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE, CALIFORNIA, AUTHORIZING THE CITY OF ORANGE TO PARTICIPATE IN THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM, SUBJECT TO CERTAIN CONDITIONS AND RESERVATIONS. WHEREAS, Assembly Bill xl 27 ( "AB 27 ") is codified as Part 1.9 of the California Health and Safety Code ( "Part 1.9 "); and WHEREAS, AB 27, upon the concurrent enactment of Assembly Bill xl 26 ( "AB 26 "), establishes a voluntary alternative redevelopment program whereby the Orange Redevelopment Agency ( "Agency ") would be authorized to continue to exist upon the enactment of an ordinance by the City to comply with the provisions of Part 1.9; and WHEREAS, AB 27 requires the City to notify the County Auditor - Controller County Controller "), the State Controller, and the State Department of Finance on or before November 1, 2011, that the City will comply with Part 1.9; and WHEREAS, AB 27 requires the City to make specified remittances to the County Controller in order to continue the existence of the Agency, as prescribed in Part 1.9; and WHEREAS, AB 27 requires the City to make specified remittances to the County Controller in order to continue the existence of the Agency, as prescribed in Part 1.9; and WHEREAS, AB 27 authorizes the City to enter into an agreement with the Agency, whereby the Agency transfers a portion of its tax increment to the City in an amount equal to the City remittances to the County Controller; and WHEREAS, AB 27 imposes specified sanctions on the City in the event that the City fails to make the required remittances, as determined by the State Director of Finance; and WHEREAS, AB 27 authorizes the County Controller to charge a fee that does not exceed the reasonable costs to the County Controller to implement the provisions of Part 1.9; and WHEREAS, AB 27 authorizes the City to establish a new redevelopment agency if its former agency has been dissolved pursuant to SB 15 only after the debt obligations of the Agency have been retired and the City satisfies the provisions of Part 1.9; and WHEREAS, it is hereby acknowledged by the City Council that the California League of Cities, the California Redevelopment Association, and special counsel for the City have respectively opined that certain or all provisions of AB 26 and AB 27, including, without limitation, the effective date, may violate the State Constitution and other laws collectively, "Laws "), and as a result are invalid and unenforceable; and WHEREAS, the City Council does not intend, by enactment of this Ordinance, to waive any constitutional and/or legal rights by virtue of the enactment of this Ordinance and, therefore, reserves all of its rights under the Laws to challenge the validity of any or all provisions of AB 26 and AB 27 in any administrative or judicial proceeding and/or repeal this Ordinance and/or to take the benefit of any legal actions by third parties that may stay or otherwise hold AB 26 and AB 27 to be unconstitutional, without prejudice to the City's right to recover any amounts remitted under Part 1.9; and WHEREAS, the City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or other assets, to make the remittance payments contemplated by Part 1.9, it being understood by the City Council that any remittance payments will be funded solely from Agency funds and /or assets transferred to the City in accordance with Part 1.9; and WHEREAS, the City Council does not intend, by enactment of this Ordinance to waive any rights of appeal regarding the amount of any remittance established by the State Department of Finance, as provided in Part 1.9. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Orange, California does ordain as follows: SECTION I: Authorization to Continue Agency. Subject to Sections 3 and 4, herein, the City hereby commits to comply with and make the remittances required by Part 1.9, and authorize the continuation of the Agency after enactment of AB 27. Any remittance payments required to be paid by the City by Part 1.9 shall be paid solely from Agency funds and/or assets transferred to the City in accordance with Part 1.9. SECTION II: Application. If any provisions of this Ordinance or the application thereof is held to be invalid for any reason, then the remainder of this Ordinance and the application of provisions thereof shall not be affected thereby. 2 SECTION III: Reservation of Rights. It is the position of the City that certain or all provisions of AB 26 and AB 27 violate the Laws, as referenced in the recitals above, and are invalid and unenforceable. Neither the adoption of this Ordinance, nor the acknowledgment of or references to any provisions of AB 26 and AB 27, nor the City's payment of any remittances contemplated by AB 27 shall be deemed to be, nor are they intended as, an acknowledgment of the validity of AB 26 and AB 27, and the City reserves all rights in its sole discretion to challenge the validity of any or all provisions of AB 26 and AB 27 in any administrative or judicial proceeding and/or repeal this Ordinance, without prejudice to the City's right to recover any amounts remitted under Part 1.9. The City reserves the right to pursue any and all appeals and any available legal or equitable remedy provided or available by law to obtain the correction of any erroneous decision regarding the amount of payments that may be required to be paid by the City under AB 27 or other applicable statutes or regulations. SECTION IV: Enactment. This Ordinance shall only be deemed "enacted" within the meaning of Part 1.9 upon (i) adoption of this Ordinance and (ii) the legally effective date of AB 26 and AB 27. SECTION V: Authorization of Implementing Actions. The City Manager, or designee, is hereby authorized to take any actions necessary to implement this Ordinance and comply with Part 1.9, including, without limitation, providing required notices to the County Controller, the State Controller, and the Department of Finance; entering into any agreements with the Agency to make the remittance payments; or making any remittance payments. SECTION VI: Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly declared that this Ordinance, and each section, subsection, sentence, clause and phrase hereof would have been prepared, proposed, approved and ratified irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION VII: A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the Office of the City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance is to be adopted. A summary of this Ordinance shall also be published once within fifteen (15) days after this Ordinance's passage in a newspaper of general circulation, published, and circulated in the City of Orange. The 91 City Clerk shall post in the Office of the City Clerk a certified copy of the full text of such adopted Ordinance along with the names of those City Council members voting for and against the Ordinance in accordance with Government Code Section 36933. This Ordinance shall take effect thirty (30) days from and after the date of its final passage. ADOPTED this 23 day of August, 2011. ATTEST: arolyn avecche, Mayor Wity of Orange Mary E. M ity Cler , of Orange STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 91h day of August, 2011, and thereafter at the regular meeting of said City Council duly held on the 23 day of August, 2011, was duly passed and adopted by the following vote, to wit: AYES:COUNCILMEMBERS:Whitaker, Smith, Cavecche NOES:COUNCILMEMBERS:Dumitru, Bilodeau ABSENT:COUNCILMEMBERS:None ABSTAIN:COUNCILMEMBERS:None Mary E ,,City Cler of Orange V