O 636 ORDINANCE NO. 636
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE
VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM
PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA
HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE
CONTINUED EXISTENCE AND OPERATION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF ARROYO GRANDE
WHEREAS, the City Council of the City of Arroyo Grande ( "City") approved and
adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project
( "Redevelopment Plan ") covering certain properties within the City (the "Project Area ");
and
WHEREAS, the Redevelopment Agency of the City of Arroyo Grande ( "Agency ") is
engaged in activities to execute and implement the Redevelopment Plan pursuant to the
provisions of the California Community Redevelopment Law (Health and Safety Code §
33000, et seq.) ( "CRL "); and
WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken
redevelopment projects in the Project Area to eliminate blight, to improve public facilities
and infrastructure, to renovate and construct affordable housing, and to enter into
agreements with private industries to create jobs and expand the local economy; and
WHEREAS, over the next few years, the Agency hopes to implement a variety of
redevelopment projects and programs to continue to eliminate and prevent blight,
stimulate and expand the Project Area's economic growth, create and develop local job
opportunities and alleviate deficiencies in public infrastructure, and expand the
opportunities for affordable housing, to name a few; and
WHEREAS, as part of the 2011 -12 State budget bill, the California Legislature has
recently enacted, and the Governor has signed, companion bills ABX1 26 and ABX1 27,
requiring that each redevelopment agency be dissolved unless the community that
created it enacts an ordinance committing it to making certain payments; and
WHEREAS, specifically, ABX1 26 prohibits agencies from taking numerous actions,
effective immediately and purportedly retroactively, and additionally provides that
agencies are deemed to be dissolved as of October 1, 2011; and
WHEREAS, ABX1 27 provides that a community may participate in an "Alternative
Voluntary Redevelopment Program," in order to enable a redevelopment agency within
that community to remain in existence and carry out the provisions of the CRL, by
enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and
Safety Code; and
ORDINANCE NO. 636
PAGE 2
WHEREAS, the Alternative Voluntary Redevelopment Program requires that the
community agree by ordinance to remit specified annual amounts to the county auditor -
controller; and
WHEREAS, under the threat of dissolution pursuant to ABX1 26, and upon the
contingencies and reservations set forth herein, the City shall make the Fiscal Year
2011 -2012 community remittance, currently estimated to be approximately Four
Hundred and Seventy Five Thousand Dollars ($475,000.00), as well as the subsequent
annual community remittances as set forth in the CRL; and
WHEREAS, the City reserves the right to appeal the California Director of Finance's
determination of the Fiscal Year 2011 -12 community remittance, as provided in Health
and Safety Code Section 34194; and
WHEREAS, City is informed and believes that an action challenging the constitutionality
of ABX1 26 and ABX1 27 has been filed on behalf of cities, counties and redevelopment
agencies; and
WHEREAS, while the City currently intends to make these community remittances, they
shall be made under protest and without prejudice to the City's right to recover such
amounts and interest thereon, to the extent there is a final determination that ABX1 26
and ABX1 27 are unconstitutional; and
WHEREAS, the City reserves the right, regardless of any community remittance made
pursuant to this Ordinance, to challenge the legality of ABX1 26 and ABX1 27; and
WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a
stay on the effectiveness of the Alternative Voluntary Redevelopment Program's
payment obligation of ABX1 26 and ABX1 27, the City shall not be obligated to make
any community remittance for the duration of such injunction, restraint, or stay; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OFARROYO GRANDE,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1: Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
SECTION 2: Participation in the Alternative Voluntary Redevelopment Program. In
accordance with Health and Safety Code Section 34193, and based on the Recitals set
forth above, the City Council hereby determines that the City shall comply with the
provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by ABX1
27.
ORDINANCE NO. 636
PAGE 3
SECTION 3: Payment Under Protest. Except as set forth in Section 4, below, the City
Council hereby determines that the City shall make the community remittances set forth
in Health and Safety Code section 34194 et seq.
SECTION 4: Effect of Stay or Determination of Invalidity. City shall not make any
community remittance in the event a court of competent jurisdiction either grants a stay
on the enforcement of ABX1 26 and ABX1 27 or determines that ABX1 26 and ABX1 27
are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or
unsuccessful, or time for filing an appeal there from has lapsed. Any community
remittance shall be made under protest and without prejudice to the City's right to
recover such amount and interest thereon in the event that there is a final determination
that ABX1 26 and ABX1 27 are unconstitutional. If there is a final determination that
ABX1 26 and ABX1 27 are invalid, this Ordinance shall be deemed to be null and void
and of no further force or effect.
SECTION 5: Implementation. The City Council hereby authorizes and directs the City
Manager to take any action and execute any documents necessary to implement this
Ordinance, including but not limited to notifying the San Luis Obispo County Auditor -
Controller, the Controller of the State of California, and the California Department of
Finance of the adoption of this Ordinance and the City's agreement to comply with the
provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in ABX1
27.
SECTION 6: Additional Understandings and Intent. It is the understanding and intent of
the City Council that, once the Agency is again authorized to enter into agreements
under the CRL, the City will enter into an agreement with the Agency as authorized
pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax
increment to the City in amounts not to exceed the annual community remittance
payments to enable the City, directly or indirectly, to make the annual remittance
payments. The City Council does not intend, by enactment of this Ordinance, to pledge
any of its general fund revenues or assets to make the remittance payments.
SECTION 7: CEQA. The City Council finds, under Title 14 of the California Code of
Regulations, Section 15378(b)(4), that this Ordinance is exempt from the requirements
of the California Environmental Quality Act ( "CEQA ") in that it is not a "project," but
instead consists of the creation and continuation of a governmental funding mechanism
for potential future projects and programs, and does not commit funds to any specific
project or program. The City Council, therefore, directs that a Notice of Exemption be
filed with the County Clerk of the County of San Luis Obispo in accordance with CEQA
Guidelines.
SECTION 8: Custodian of Records. The documents and materials that constitute the
record of proceedings on which these findings are based are located at the City Clerk's
office located at 300 East Branch Street, Arroyo Grande, California 93420. The
custodian for these records is the City Clerk.
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PAGE 4
SECTION 9: Severabilitv. If any provision of this Ordinance or the application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Ordinance which can be given effect without the invalid
provision or application, and to this end the provisions of this Ordinance are severable.
The City Council hereby declares that it would have adopted this Ordinance irrespective
of the invalidity of any particular portion thereof.
SECTION 10: Ordinance Not To Be Codified. This Ordinance shall not be codified in
the Municipal Code but shall be an uncodified ordinance.
SECTION 11: Certification; Publication. A summary of this Ordinance has been
published in a newspaper published and circulated in the City of Arroyo Grande at least
five (5) days prior to the City Council meeting at which this Ordinance has been
adopted. A certified copy of the full text of this Ordinance has been posted in the in the
office of the City Clerk. Within fifteen (15) days after adoption of this Ordinance, the
summary with the names of those City Council members voting for and against this
Ordinance shall be published again, and the City Clerk shall post a certified copy of the
full text of this adopted Ordinance.
SECTION 12: Date of Continuation of Powers. Pursuant to Health & Safety Code
Section 34193(a), the Agency shall have authority to continue to carry out the provisions
of the CRL as of the date of enactment of the Ordinance, August 23, 2011.
SECTION 13: Effective Date. This Ordinance shall become effective thirty (30) days
from and after its adoption.
On motion of Council Member Guthrie, seconded by Council Member Brown, and on
the following roll call vote, to wit:
AYES: Council Members Guthrie, Brown, Costello, Ray, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Ordinance was passed and adopted this 23 day of August 2011.
ORDINANCE NO. 403(0
PAGE 5
TONY FE , MAYOR
ATTEST:
‘ OS / /,I L! JL..I '
KELLY W M •`' E, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM: TIM THY J. RMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
the attached is a true, full, and correct copy of Ordinance No. 636 which was
introduced at a regular meeting of the City Council on August 9, 2011; was
passed and adopted at a regular meeting of the City Council /Redevelopment
Agency of the City of Arroyo Grande on the 23 day of August 2011; and was
duly published in accordance with State law (G.C. 40806).
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 24
day of August 2011.
ice/ /4 b uo r
KELLY c ET 1". RE, CITY CLERK