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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. ORDINANCE NO. 636 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