RES-2011-104 RESOLUTION NO. 2011 -104
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM DECLARING ITS INTENTION TO ENACT AN
ORDINANCE WHEREBY THE CITY SHALL ELECT TO
COMPLY WITH AND PARTICIPATE IN THE ALTERNATIVE
VOLUNTARY REDEVELOPMENT PROGRAM CONTAINED IN
PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH
AND SAFETY CODE
WHEREAS, the Anaheim Redevelopment ( "Agency ") is a community redevelopment
agency organized and existing under the California Community Redevelopment Law, Health and
Safety Code Sections 33000, et seq. ( "CRL "), and has been authorized to transact business and
exercise the powers of a redevelopment agency pursuant to action of the City Council ( "City
Council ") of the City of Anaheim ( "City "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the
Amended and Restated Redevelopment Plan ( "Redevelopment Plan ") for the Anaheim Merged
Project Area ( "Redevelopment Project ") which was adopted by and through a series of ordinances of
the City Council of the City, specifically Ordinance Nos. 5913, 5914, 5915, 5916, 5917, 5918, 5973,
and 6034; and
WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code were
added to the CRL by ABX1 26 and ABX1 27, which measures purport to become effective
immediately. ABX1 26 and ABX1 27, which are trailer bills to the 2011 -12 budget bills, were
approved by both houses of the Legislature on June 15, 2011 and signed by the Governor on June 28,
2011; and
WHEREAS, Part 1.85 of the CRL ( "Part 1.85 ") provides for the statewide dissolution of all
redevelopment agencies, including the Agency, as of October 1, 2011, and provides that, thereafter, a
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successor agency shall administer the enforceable obligations of the Agency and otherwise wind up
the Agency's affairs, all subject to the review and approval by an oversight committee; and
WHEREAS, Part 1.8 of the CRL ( "Part 1.8 ") provides for the restriction of activities and
authority of the Agency in the interim period prior to dissolution to certain "enforceable obligations"
and to actions required for the general winding up of affairs, preservation of assets, and certain other
goals delineated in Part 1.8; and
WHEREAS, the dissolution of the Agency 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 Agency are highly significant and of enduring benefit to the
community and the City, and are a critical component of its future; and
WHEREAS, Part 1.9 of the CRL ( "Part 1.9 ") provides that a redevelopment agency may
continue in operation if a city or county that includes a redevelopment agency adopts an ordinance
agreeing to comply with and participate in the Alternative Voluntary Redevelopment Program
established in Part 1.9 ( "Program "); and
WHEREAS, as a condition of the Agency's continued existence and operation of its
redevelopment agency, the City is required to make certain annual remittances to the county
auditor - controller pursuant to Chapter 3 of Part 1.9, beginning with a larger upfront remittance for
the 2011 -2012 fiscal year ( "First Remittance "), to be paid in two equal installments on January 15,
2012 and May 15, 2012; and
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WHEREAS, the City expects it will have sufficient moneys and revenues to fund an amount
equal to the City's payment of the First Remittance and further expects to have sufficient moneys and
revenues to fund the subsequent annual remittances required by Part 1.9; and
WHEREAS, the City's needs are such that it can commit to spend the funds received from
the Agency pursuant to the Agreement to Transfer Tax Increment (defined below) to finance
activities within the Redevelopment Project that are related to accomplishing the goals of the
Redevelopment Project; and
WHEREAS, the City intends to adopt the ordinance required by Part 1.9, in order to allow
the Agency to continue in operation and perform its functions ( "Ordinance "); and
WHEREAS, the City intends to adopt the Ordinance and desires to forestall the dissolution
of the Agency until November 1, 2011 to allow the City sufficient time to enact the Ordinance; and
WHEREAS, the City and Agency desire to enter into an agreement pursuant to CRL Section
34194.2 whereby the Agency shall make an initial transfer of a portion of its tax increment to the
City in an amount equal to the First Remittance, and thereafter to transfer amounts of tax increment
equal to any subsequent remittance which the City is required to make to the county auditor -
controller pursuant to the City's participation in the Program ( "Agreement to Transfer Tax
Increment "); and
WHEREAS, the City is aware that the validity, passage, and applicability of ABX1 26 and
ABX1 27 may become the subject of a judicial challenge; and
WHEREAS, the City, by the adoption of this resolution, does not represent, disclaim, or take
any position whatsoever on the issue of the validity of ABX1 26 or ABX1 27, but rather the City
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seeks to comply with the Constitution and laws of the State of California, including Part 1.9, in order
to preserve the ability of the Agency to continue to operate and thereby benefit the community; and
WHEREAS, the City has duly considered all other related matters and has determined that
the City's participation in the Program is in the best interests of the Agency, the City, and the health,
safety, and welfare of its residents, and in accord with the public purposes and provisions of
applicable state and local laws and requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
RESOLVE AS FOLLOWS:
Section 1. The foregoing Recitals are incorporated into this Resolution by this reference,
and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 34193(b), the City hereby expresses its intent to adopt
the Ordinance to comply with Part 1.9. This resolution is that "nonbinding resolution of intent" referred
to in CRL Section 34193(b) and shall be interpreted and applied in all respects in accordance with such
section and Part 1.9, to the fullest extent permitted by law.
Section 3. On or before October 1, 2011, the City Manager (or his designee) is hereby
authorized and directed to notify the county auditor, the State Depai tinent of Finance, and the Controller
of the State concerning the resolution, in accordance with Section 34193(b).
Section 4. The City Attorney is hereby authorized to bring an action in the Superior Court
pursuant to CRL Sections 33500 and 33501 to determine the validity of the Ordinance referred to in this
resolution, or the validity of any bonds contemplated to be issued by the Agency or other material
contracts of the Agency, or any findings of the City Council related thereto, upon the determination of the
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City Manager that such action is reasonably necessary or appropriate to facilitate the consummation of
any Agency transaction for which governing board approval has been given.
Section 5. The City Clerk shall certify to the adoption of this Resolution.
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THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
CITY COUNCIL OF THE CITY OF ANAHEIM THIS TWELTH (12 DAY OF JULY,
2011, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Tait, Council Members Sidhu, Eastman, Galloway and Murray
NOES: None
ABSTAIN: None
''....-...---------/ r
7,'‘-
Tom Tait, Mayor
ATT .. .
AI, A41'._�Ib
Linda N. Arid City Clerk
APPROVED AS TO FORM:
CRISTIN . T A L j i i Z Attorney
By:
....,,A r,
Theo. • : J. Re olds
Assi. - - City Attorney
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