Ordinance - 2219ORDINANCE NO. 2219
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, 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 COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA
WHEREAS, the Community Development Commission of the City of West Covina (the
"Commission") is a community development commission duly created, established and
authorized to transact business and exercise its powers, all under and pursuant to the California
Community Development Commission Law (Part 1.7 of Division 24, commencing with Section
34100, of the Health and Safety Code of the State of California) (the "CDCL"); and
WHEREAS, the City Council of the City of West Covina ("City") approved and adopted
the Redevelopment Plans for the following Redevelopment Projects ("Redevelopment Plans")
covering certain properties within the City (the "Project Areas"):
1. On December 20, 197t the West Covina City Council adopted the original Central
Business District Redevelopment Project Area by adoption of Ordinance No. 1180.
2. On July 14, 1975 the West Covina City Council adopted the original Eastland
Redevelopment Project Area by adoption of Ordinance No. 1269
3. On December 21, 1993 the West Covina City Council approved the Merger of the
Central Business District and the Eastland Redevelopment Project Areas by adoption
of Ordinance No. 1927 and Ordinance No. 1028, which adopted the merged area as
the West Covina Redevelopment Project Area and added three non-contiguous areas
to the merged project area.
WHEREAS, the Commission is. engaged in activities to execute and implement the
Redevelopment Plans pursuant to the provisions of the CDCL; and
WHEREAS, since adoption of the Redevelopment Plans, the Commission has
undertaken redevelopment projects in the Project Areas to eliminate blight, to improve public
facilities and infrastructure, to renovate and construct affordable housing, and to enter into
partnerships with private industries to create jobs and expand the local economy; and
WHEREAS, over the next few years, the Commission hopes to implement a variety of
redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and
expand the Project Areas' economic growth, create and develop local job opportunities and
alleviate deficiencies in public infrastructure, 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 AB IX 26 and AB IX 27,
requiring that each development commission be dissolved unless the community that created it
enacts an ordinance committing it to making certain payments; and
WHEREAS, specifically, AB 1X 26 prohibits commissions from taking numerous
actions, effective immediately and purportedly retroactively, and additionally provides that
commissions are deemed to be dissolved as of October 1, 2011; and
WHEREAS, the dissolution of the Commission would be detrimental to the health,
safety, and economic well-being of the residents of the City and cause irreparable harm to the
community, because, among other reasons, the redevelopment activities and projects made
possible, implemented, and funded by the Commission are highly significant and of enduring
benefit to the community and the City; and are a critical component of its future; and
WHEREAS, AB IX 27 provides 'that a community may participate in an "Alternative
Voluntary Redevelopment Program," in order to enable a development commission within that
community to remain in existence and `carry out the provisions of the Community
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Redevelopment Law ("CRL"), by enacting an ordinance agreeing to comply with Part 1.9 of
Division 24 of the Health and Safety Code; and
WHEREAS, the Alternative Voluntary' Redevelopment Program requires that the
community agree by ordinance to remit specified annual amounts to the county auditor -controller
in accordance with section 34194 of the CRL; and
WHEREAS, under the threat of dissolution pursuant to AB 1X 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 5.85 Five Million Eight Hundred Fifty
Thousand and No/100 Dollars, ($5,850,000) as well as the subsequent annual community
remittances as set forth in section 34194 of 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 understands and believes that an action challenging the
constitutionality of AB IX 26 and AB 1X 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 AB IX 26 and AB IX 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 AB 1 X 26" and AB 1 X 27; and
WHEREAS, the California Supreme" Court on August 11, 2011 issued a partial stay
("Stay") on the operative effects of ABX1 26 and ABXI 27 in the case of California
Redevelopment Association, et al. v. Ana Matsonantos, et al. Case No. S 194861. To the extent
of the stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment
obligation of AB 1X 26 and AB 1X 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.
THE CITY COUNCIL OF THE CITY OF WEST COVINA, 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 shallcomply with the provisions of Part
1.9 of Division 24 of the Health and Safety Code, as enacted by AB 1X 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. Any such payments shall be made under protest.
SECTION 4. Effect 'of Stay or Determination of Invalidity. City shall not make any
community remittance during the period of time the Stay remains effective or if a court of
competent jurisdiction determines that AB 1X 26 and AB 1X 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 AB 1X 26 and AB 1X 27 are unconstitutional. If there is a
final determination that AB 1X 26 and AB 1X 27 are invalid, this Ordinance shall be deemed to
be null and void and of no further force or effect. To the extent the Stay may be interpreted to
disallow or prohibit the adoption of this Ordinance for any period of time, then any actions of the
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City Council in adopting this Ordinance shall be deemed to have occurred at a time when such
disallowance or prohibition was riot in effect'without further action by the City Council.
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 AB I 27.
SECTION 6. Additional Understandings and Intent. It is the understanding and
intent of the City Council that, once the Commission is again authorized to enter into agreements
under the CRL, the City will enter into an agreement with the Commission as authorized
pursuant to Section 34194.2, whereby the Commission 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. CE A. 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.
SECTION S. 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 1444 West Garvey Avenue, West Covina, California, 91790. The custodian for these
records is the City Clerk.
SECTION 9. If any part of this Ordinance, or its application to any person or
circumstance, is held to be invalid, the remainder of the ordinance, including the application or
provision to other persons or circumstances, shall not be affected and shall continue in full force
and effect. To this end, the provisions of this ordinance are severable.
SECTION 10. The City Clerk shall certify to the passage of this ordinance by the City
Council of the City of West Covina and cause it to be posted in three conspicuous places in the
City of West Covina, and it shall take effect on the thirty-first (31) day after it is approved by the
Mayor, except that this Ordinance shall not be effective during any period of time that the Stay
remains effective. However the Stay shall have no effect on the running of the thirty day
referendum period on this ordinance, which thirty days shall commence and continue to run
during the Stay.
APPROVED AND ADOPTED on this 6" day of September, 2011.
0
T:
City Clerk
Ordinance No. 2219
Page 4 of 4
I, LAURIE CARRICO, City Clerk of the City of West Covina, California, do hereby certify that
the foregoing Ordinance was introduced and placed upon its first reading at a special meeting of
the City Council on the 23rd day of August, 2011. That thereafter said Ordinance was duly
passed and adopted at a regular meeting of the City Council on the 6th day of September 2011 by
the following vote.
AYES:
Armbrust, Lane, Sanderson, Touhey, Herfert
NOES:
None
ABSENT:
None
ABSTAIN:
None
ity Clerk L ri Carrico
APPROVED AS TO FORM:
City,tto ey Arnold Alvarez-Glasman
CERTIFICATION
I, Susan Rush, Assistant City Clerk of the City of West Covina, State of California, do
hereby certify that a true and accurate copy of Ordinance No. 2219 was duly enacted and passed
by the West Covina City Council, and caused to be posted pursuant to law (G.C. 36933), at the
following locations:
West Covina City Clerk's Office (3rd floor)
Los Angeles County Public Library (West Covina Branch)
West Covina Police Department (front lobby)
Susan Rush, Assistant City Clerk
Posted: September 8, 2011