R 4399 RESOLUTION NO. 4399
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING A REMITTANCE
AGREEMENT BY AND BETWEEN THE CITY OF ARROYO
GRANDE AND THE REDEVELOPMENT AGENCY OF THE
CITY OF ARROYO GRANDE, PURSUANT TO THE
AUTHORITY SET FORTH IN HEALTH AND SAFETY
CODE SECTION 34194.2 (AB TX 27)
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted
and the Governor signed, from the 2011-12 First Extraordinary Session, Assembly Bills
1X 26 and 1X 27 ("AB 1X 26" and "AB 1X 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, the City Council of the City of Arroyo Grande ("City') has adopted
Ordinance No. 636 to effect the City's participation in the "Alternative Voluntary
Redevelopment Program," established pursuant to AB 1X 27, and thereby prevent the
dissolution of the Redevelopment Agency of the City of Arroyo Grande ("Agency") and
enable the continuance of the Agency and its operations and programs; and
WHEREAS, the Alternative Voluntary Redevelopment Program requires the City to
make certain remittance payments each fiscal year to the county auditor-controller to
benefit schools and certain special districts; and
WHEREAS, Health and Safety Code Section 34194.2, a section within AB 1X 27,
authorizes the City to 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 each year pursuant to -the Alternative Voluntary Redevelopment
Program, as set forth in Chapter 3 of Part 1.9 of Division 24 of the Health and Safety
Code; and
WHEREAS, a Remittance Agreement between the City and Agency, consistent with
Health and Safety Code Section 34194.2, has been prepared and presented to the City
Council and Agency Board for consideration; and
WHEREAS, as of the date.hereof, the California Supreme Court has exercised original
jurisdiction in California ' Redevelopment Association, et al., Petitioners v. Ana
Matosantos, et al., Respondents, Case No. S194861, a lawsuit challenging the.
constitutionality and validity of AB 1X 26 and AB 1X 27, the Court issued a partial stay
on the enforcement of AB 1X 26 and AB 1X 27, and the Court has indicated its intent to
issue a ruling in the case in January 2012; and
WHEREAS, in light of the stay issued by the Court, the approval of the Agreement is
subject to the condition subsequent that the Court lifts the stay and upholds the
constitutionality and validity of both AB 1X 26 and AB 1X 27 which would then
implement the City's remittance payment obligation under AB 1X 27, as described in the
RESOLUTION NO. 4399
PAGE 2
Recitals to the Agreement, and require the payments by the Agency to the City as
provided in the Agreement and subject to the terms of this Agreement; and
WHEREAS, as set forth in Sections 5 and 15 of the Agreement, if the California
Supreme Court, or any other court, determines that either AB 1X 26 or AB 1X 27, or
both, are unconstitutional or otherwise legally invalid, and all appeals therefrom are
exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed, the
Agreement shall automatically, and without the need for any further action by the City
Council, Agency Board of Directors, or any City or Agency officer, official, employee,
agent, or representative, be terminated and of no further force and effect.
NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows:
Section 1. The foregoing Recitals are incorporated herein and made a part hereof.
Section 2. The Remittance Agreement, in the form presented concurrently with this
Resolution, on file with the City Clerk, is hereby approved. The Mayor is authorized
and directed to sign the Remittance Agreement on behalf of the City.
Section 3. The City Manager and his authorized designees are authorized and
directed to take such other and further actions, and to, sign such other and further
documents and instruments, as may be necessary to implement and effect this
Resolution and the Remittance Agreement on behalf of the City.
Section 4. . The City Clerk shall certify to the adoption of this Resolution.
On motion of Council Member Costello, seconded by Council Member Ray, and on the
following roll call vote, to wit:
AYES: Council Members Costello, Ray, Brown, and Mayor Ferrara
NOES: None
ABSENT: Council Member Guthrie
the foregoing Resolution was passed and adopted this 27th day of September 2011.
RESOLUTION NO.
PAGE 3
TONY FER AYOR
ATTEST:
h�
KELLY TM E, CITY CLERK
APPROVED AS TO CONTENT:
STEVEfV A hAMS, CITY MANAGER
APPROVED AS TO FORM:
/'Je
TIMCyfHY J. C (VIEL, 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
Resolution No. 4399 is a true, Tull, and correct copy of said Resolution passed
and adopted at a regular meeting of the City Council/Redevelopment Agency of
the City of Arroyo Grande on the-27th day of September 2011.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 291h
day of September 2011.
KELLY ET�IbRE, CITY CLERK
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