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Home My WebLink AboutRDA Reso 2011-2048RDA RESOLUTION NO. 2011-2048 (City Council Resolution No. 201 l-193) RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A CONDITIONAL REMITTANCE AGREEMENT PURSUANT TO ASSEMBLY BILL X1 27, DIVISION 24, PART 1.9, SECTION 34194.2, WHICH REMITTANCE IS CURRENTLY ESTIMATED AT $4.1 MILLION FOR THE 2011-2012 FISCAL YEAR AND $1 MILLION IN SUBSEQUENT YEARS WHEREAS, Assembly Bill No. X1 27 ("AB 27") was passed by the State Legislature on June I5, 2011, and signed by the Governor on June 29, 2011; and WHEREAS, upon enactment, AB 27 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"); and WHEREAS, AB 27 establishes a voluntary alternative redevelopment program ("VARP") whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an Ordinance by the City to comply with the provisions of Part 1.9 and make certain remittances described in Health and Safety Code Section 34194 to the County Auditor- Controller; and WHEREAS, the City Council of the City of Chula Vista ("City Council") has adopted an Ordinance to comply with Part 1.9 ("Ordinance"), thereby indicating its election to participate the VARP; and WHEREAS, pursuant to the Part 1.9 Ordinance, the City Council has committed to comply with and make remittances required by Part 1.9 and authorize the continuation of the Agency after enactment of AB 27; and WHEREAS, pursuant to Part 1.9, the City would be required to make a remittance payment to the state in Fiscal Year 2011/2012 and each year thereafter to participate in the VARP; and WHEREAS, the State Department of Finance is tasked with determining the remittance amount required by Part ] .9 to the State; and WHEREAS, for the 201 I/2012 Fiscal Year the remittance amount is estimated to be $4.1 million and approximately $1 million in subsequent years; and WHEREAS, pursuant to Section 34194.1, in making remittances to the County Auditor- Controller pursuant to Section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses; and RDA Resolution No. 2011-2048 (CC Resolution No. 2011-]93) Page 2 WHEREAS, pursuant to Section 34194.2, the City may enter into an agreement with the Agency, whereby the Agency will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment azea that are related to accomplishing the redevelopment agency project goals; and WHEREAS, the purpose of this Agreement is to provide for the transfer of funds by the Agency to the City in an amount sufficient for the City to make the remittances required by Part 1.9, with Net Available Tax Increment in this current fiscal yeaz and forthcoming fiscal years; and WHEREAS, the term "Met Available Tax Increment" is defined as any tax increment funds allocated to the Agency, net of existing debt service payments and existing third-party contractual obligations, not including any funds on deposit in the Agency's Low and Moderate Income Housing Fund, and also not including any portion of tax increment funds to be allocated to the Low and Moderate Income Housing Fund pursuant to Health and Safety Code Section 33334.2, 33334.4 and 33334.6 for the Fiscal Yeaz 2011/2012 yeaz only, to the extent the Agency makes a finding that there aze insufficient other moneys to meet its debt and other obligations, current priority program needs or its obligation to transfer funds to the City under Section 34194.2 as provided in this Agreement; and WHEREAS, the obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment plan for each of the Agency's redevelopment project azeas; and WHEREAS, the City and the Agency are awaze that the validity, passage, and applicability of the AB 27 and AB Xl 26 is the subject of judicial challenge(s), including the action: California Redevelopment Association, et al v. Ana Matosantos, et al ("CRA Action"); and WHEREAS, the City and Agency aze aware that the Supreme Court accepted original jurisdiction of the CRA Action on August 11, 2011, notified the parties of the briefing schedule, and importantly, issued a stay order affecting Part 1.85 and Part 1.9, but the Court did not stay Sections 34161 to 34167 of Part 1.8, then on August 17, 2011, the Supreme Court modified its stay order, which released the stay on Sections 34167.5 to 34169.5 of Part 1.8 and on Section 34194(b)(2) of Part 1.9, making those laws now effective ("Supreme Court Stay"); and WHEREAS, given the Supreme Court Stay and potential decision or future action, the City and Agency desire to enter into this Agreement, but that this Agreement shall be conditional, in that it shall be effective only if the decision of the Supreme Court or other order of the Supreme Court permits the City to opt into the VARP and/or permits a payment to the state for participation in the VARP; and RDA Resolution No. 2048 (CC Resolution No. 2011-/93) Page 3 WHEREAS, this Agreement shall in no way be construed as requiring the Agency (or the City) to abide by AB 26X1 and AB 27 (collectively "2011 Redevelopment Legislation") in the event either, or both, bill aze found unconstitutional or otherwise legally invalid in whole of in part, nor shall this Agreement effect or give rise to any waiver of rights or remedies the Agency (and/or the City) may have, whether in law or in equity, to challenge 2011 Redevelopment Legislation. This Agreement shall not be construed as the Agency's (and/or City's) willing acceptance of, or concurrence with, the 2011 Redevelopment Legislation, either AB Xl 26 or AB 27; nor does this Agreement evidence any assertion or belief whatsoever on the part of the Agency (and/or City) the 2011 Redevelopment Legislation is/are constitutional or lawful. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista and the Redevelopment Agency of the City of Chula Vista 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. The City hereby approves the attached Conditional Remittance Agreement and directs the City Manager or his designee to execute the aforementioned agreement and to take any and all measures to implement this Resolution and aforementioned Agreement. Section 3. The Agency hereby approves the attached Conditional Remittance Agreement and directs the Executive Director or his designee to execute the aforementioned agreement and to take any and all measures to implement this Resolution and aforementioned Agreement. Section 4. The officers and staff of the City and Agency are hereby authorized directly, jointly and severally, to do any and all things that they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. Section 5. This Resolution shall take effect upon the date of adoption. Presented by Approved as to form by -. es D. Sandoval Glen R. Gpogin xecutive Director ~ C/ounsel\~ _, RDA Resolution No. 2011-2048 (CC Resolution No. 2011-193) Page 4 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency and the City Council of the City of Chula Vista, California, this 27th day of September 2011, by the following vote: AYES: Agency/Councilmembers: Aguilar, Castaneda, Ramirez and Cox NAYS: Agency/Councilmembers: None ABSENT: Agency/Councilmembers: Bensoussan Cheryl Cox, Ch t •pers n/Mayor ATTEST: Enc Crockett, Secretary STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Eric Crockett, Secretary of the Redevelopment Agency of the City of Chula Vista, California, do hereby certify that the foregoing Redevelopment Agency Resolution No. 2011-2048/City Council Resolution No. 2011-193 was duly passed, approved, and adopted by the Redevelopment Agency and Chula Vista City Council at a regulaz meeting of the City Council and Special meeting of the Redevelopment Agency held on the 27th day of September 2011. Executed this 27th day of September 2011. Eric Crockett, Secretazy