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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 Ordinance No. 2219 Page 2 of 4 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 Ordinance No. 2219 Page 3 of 4 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