Ordinance No. 917 - Alternative Voluntary Redevelopment Program (2)ORDINANCE NO. 917
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ROSEMEAD CALIFORNIA, DETERMINING TO
COMPLY WITH THE ALTERNATIVE VOLUNTARY
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 ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION
WHEREAS, the Rosemead Community Development Commission ( "CDC ") is a
community development commission organized and existing under the California Community
Redevelopment Law (Health & Safety Code § 33000 etseq.) ( " 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 Rosemead ( "City Council" or "City," as applicable); and
WHEREAS, pursuant to the CRL, the City Council approved and adopted the
Redevelopment Plan ( "Redevelopment Plan") for the Rosemead Redevelopment Project
( "Project ") on July 27, 1972, by Ordinance No. 340, and the CDC is vested with the
responsibility for implementing and carrying out the Redevelopment Plan; and
WHEREAS, the CDC is currently in the process of carrying out the goals and objectives
of the Redevelopment Plan by continuing to: eliminate blight; increase, improve, and preserve
the supply of affordable housing in the community; stimulate and expand economic growth and
employment opportunities by revitalizing properties and businesses within the Project; and
alleviate deficiencies in public infrastructure; and
WHEREAS, in connection with approval and adoption of the State Budget for Fiscal
Year 2011 -12, the California Legislature has approved, and the Governor has signed
(i) ABXl 26 ( Stats. 2011, chap. 5, "ABXI 26 "), which immediately, and purportedly
retroactively, suspends all otherwise legal redevelopment activities and incurrence of
indebtedness, and dissolves redevelopment aencies effective October 1, 2011 (the "Dissolution
Act "); and (ii) ABXl 27 (Stats. 2011, chap. 6, "ABXl 27 "), which allows communities to avoid
the consequences of the Dissolution Act and continue their redevelopment CDC if the
community enacts an ordinance agreeing to aimply with the alternative voluntary redevelopment
program described in Section 2 of ABXl 27 adding Part 1.9 (commencing with section 34192)
of Division 24 of the Health and Safety Code (the "Alternative Redevelopment Program"); and
WHEREAS, the Alternative Redevelopment Program requires the participating
communities to remit specific annual payments to the county auditor - controller for allocation to
school entities and special districts; and
WHEREAS, in order to enable the continued operation and unrestricted activities of the
CDC to serve the essential role of implementing the goals and objectives of the Redevelopment
Plan, under the threat of dissolution pursuant to ABXl 26, and upon the contingencies and
reservations set forth herein, the City shall participate in the Alternative Redevelopment
Program and make the Fiscal Year 2011 -20.12 community remittance, currently estimated to
be $2,112,991, as well as the subsequent annual community remittances as set forth in
ABXI 27; 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 aware that an action challenging the constitutionality of
ABXI 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, in the event that there is a final determination that ABXI 26
and ABX 127 are unconstitutional; and
WHEREAS, the City reserves the right, regardless of any community remittance
made pursuant to this Ordinance, to challenge the legality of ABXI 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 Redevelopment Program's payment
obligation of ABXI 26 and ABXI 27, the City shall not be obligated to make any
community remittance for the duration of such injunction, restraint, or stay; and
WHEREAS, the City is the lead agency concerning this Ordinance pursuant to the
California Environmental Quality Act (codified as Public Resources Code Section 21000 et seg)
( "CEQA ") and the State CEQA Guidelines; and
WHEREAS, City staff has determined that this Ordinance is exempt from CEQA,
pursuant to CEQA Guidelines Section 15378(b)(4), because the community remittances
authorized hereunder are a government funding mechanism and fiscal activity, and do not
involve any commitment to any specific project that may result in a potentially significant
environmental impact; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have
occurred.
NOW, THEREFORE, the City Council of the City of Rosemead does hereby ordain as
follows:
Section 1 . Recitals The Recitals set forth above are true and correct and
incorporated herein.
Section 2 Participation in the Alternative 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 ABXI 27.
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 ABXI 26 and ABXI 27 or determines that ABXI 26 and ABXI 27 are
unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful,
or time for filing an appeal therefrom 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 ABXl 26 and ABXI 27 are
unconstitutional. If there is a final determination that ABX1 26 and ABXI 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 Los Angeles 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 CDC is again authorized to enter into agreements under
the CRL, the City will enter into an agreement with the CDC as authorized pursuant to Section
34194.2, whereby the CDC 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.
Section 7 . CEOA 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 that may
result in a potentially significant environmental impact.
Section 8 . Notice of Exemption The City Council hereby authorizes and directs
that a Notice of Exemption be filed with the County Clerk of the County of Los Angeles,
California, in accordance with CEQA Guidelines.
Section 9 . 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 City Hall, 8838 E. Valley Blvd., Rosemead California 91770. The custodian for these
records is the City Clerk.
Section 10 . SeverabilitY 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 11. Publication Within 15 days of adoption of this Ordinance, the City Clerk
shall certify to the adoption of this Ordinance and cause it to be published in a newspaper of
general circulation printed and published within the City of Rosemead, in accordance with
Government Code § 36933.
Section 12 . Effective Date This Ordinance shall become effective thirty (30) days
from its adoption.
PASSED AND ADOPTED by the City Council of the City of Rosemead, this 9th day of
August, 2011, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
S Ei LY, MAYO
ATTEST:
GLORIA MOLLEDA, CITY CLERK
APPROVED AS TO FORM
RACHEL RICHMAN, CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD 1
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Ordinance No. 917, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD DETERMINING TO COMPLY
WITH THE ALTERNATIVE VOLUNTARY
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 ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
was duly and regularly approved and adopted by the Rosemead City Council on the 9 of
August 2011, by the following vote to wit:
Yes: Alarcon, Armenta, Low, Ly
No: None
Abstain: None
Absent: Clark
\ r� `A
Gloria Molleda
City Clerk
: O
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: AUGUST 9, 2011
SUBJECT: ORDINANCE 917 — SECOND READING: THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, DETERMINING IT WILL COMPLY WITH THE
VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM
PURSUANT TO PARTY 1.9 OF DIVISION 24 OF THE CALIFORNIA
HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE
CONTINUED EXISTENCE AND OPERATION OF THE ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION
SUMMARY
On July 26, 2011, the City Council introduced Ordinance No. 917, determining to
comply with the alternative voluntary 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 Rosemead Community Development Commission.
Ordinance No. 917 is now before Council at the required second reading for adoption.
Staff Recommendation
Staff requests that City Council ADOPT Ordinance No. 917 at its second reading.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
'S `vu"
GLORIA MOLLEDA
CITY CLERK
Attachment A — Ordinance No. 917
ITEM NUMBER: C