RES-ORA-0538 Obligation Payment ScheduleRESOLUTION NO. ORA -0538
A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY APPROVING A
PRELIMINARY DRAFT OF AN INTIAL RECOGNIZED
OBLIGATION PAYMENT SCHEDULE PURSUANT TO
PART 1.8 OF DIVISION 24 OF THE CALIFORNIA
HEALTH AND SAFETY CODE AND TAKING
CERTAIN ACTIONS IN CONNECTION THEREWITH.
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 will
consider making certain amendments to the Enforceable Obligation Payment Schedule by
adopting a First Amendment thereto; and
WHEREAS, Health and Safety Code Section 34169 (h), which is set forth in Part
1.8, requires the Agency to prepare a preliminary draft of an initial Recognized Obligation
Payment Schedule no later than September 30, 2011. This initial Recognized Obligation
Payment Schedule must set forth the minimum payment amounts and due dates of payments
required by enforceable obligations for the six -month period from January 1, 2012 through
June 30, 2012; and
WHEREAS, Part 1.85 of Assembly Bill X1 26 was stayed in its entirety, but Part 1.8
was not stayed. Accordingly, the Agency desires to approve a preliminary draft of an initial
Recognized Obligation Payment Schedule; and
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WHEREAS, by the adoption of this Resolution No. ORA -0538, the Agency is
adopting a preliminary draft of an initial Recognized 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.
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:
1. The Agency hereby approves the preliminary draft of an initial Recognized
Obligation Payment Schedule substantially in the form attached as Exhibit A to this
Resolution and incorporated herein by reference (the "ROPS "). The Executive Director of
the Agency, in consultation with the Agency's legal counsel, may modify the ROPS as the
Executive Director or the Agency's legal counsel deems necessary or advisable.
2. The Agency Clerk or designee is hereby authorized and directed to transmit a
copy of the ROPS to the successor agency designated pursuant to Part 1.85 if a successor
agency is designated.
3. The Agency hereby designates the Agency Finance Officer as the official to
whom the Department of Finance may make requests for review in connection with the
ROPS and who shall provide the Department of Finance with the telephone number and
email contact information for the purpose of communicating with the Department of Finance.
4. The officers and staff of the Agency are hereby authorized and directed,
jointly and severally, to do any and all things which they may deem necessary or advisable to
effectuate this Resolution, and any such actions previously taken by such officers are hereby
ratified and confirmed.
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.
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6. This Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California
Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the
Agency's environmental guidelines. The Agency has determined that this Resolution is not a
project" for purposes of CEQA, as that term is defined by Guidelines Section 15378,
because this Resolution is an organizational or administrative activity that will not result in a
direct or indirect physical change in the environment. (Guidelines Section 15378(b) (5)).
7. The effective date of this Resolution shall be the date of its adoption.
ADOPTED this 27 day of September, 2011.
ATTEST:
Mary E urp , Agency Cler
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, Smith, Cavecche
NOES: DIRECTORS: Dumitru, Bilodeau
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
Mary E. .Agency 076r
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