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ARA-2011-011 RESOLUTION NO. ARA- 2011 -011 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AS REFERRED TO IN SECTION 34169(G) OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW. WHEREAS, the Anaheim Redevelopment Agency (the "Agency ") is a community redevelopment agency organized and existing under the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; herein referred to as the "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 Anaheim (the "City Council "); 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, specifically Ordinance Nos. 5913, 5914, 5915, 5916, 5917, 5918, 5973 and 6034; and WHEREAS, the Agency is responsible for implementation of the Redevelopment Plan for the Redevelopment Project, and the Redevelopment Plan sets forth a plan for redevelopment of the Redevelopment Project consistent with the policies and standards of the General Plan of the City; and WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by Assembly Bill X1 26 and Assembly Bill X1 27 (together, the "2011 Redevelopment Legislation "), which laws were purported to become effective when signed by the Governor on June 28, 2011; and WHEREAS, the 2011 Redevelopment Legislation is a part of multiple trailer bills to the FY 2011 -2012 California budget bills that were approved by both Houses of the State Legislature on June 15, 2011 and signed by the Governor on June 28, 2011; and WHEREAS, Part 1.85 of the CRL added by the 2011 Redevelopment Legislation ( "Part 1.85 ") provided for the statewide dissolution of all redevelopment agencies, including the Agency, as of October 1, 2011, and further provided that, thereafter, a successor agency will administer the enforceable obligations of all redevelopment agencies and otherwise wind up their affairs, all subject to the review and approval of oversight committees; and WHEREAS, notwithstanding the provisions of Part 1.85, Part 1.9 of Division 24 of the CRL added by the 2011 Redevelopment Legislation ( "Part 1.9 ") provided 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 (the "Program "); and WHEREAS, upon the finding and determination that 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, the City Council elected to comply with and participate in the Program by the adoption of Ordinance No. 6217 on July 19, 2011, as required by Part 1.9, in order to allow the Agency to continue in operation and perform its functions (the "Ordinance "); and WHEREAS, the Agency is aware that the validity, passage, and applicability of the 2011 Redevelopment Legislation is the subject of judicial challenge(s), including the action brought by the California Redevelopment Association ( "CRA ") and the League of California Cities in their own capacity and on behalf of their members: California Redevelopment Association, et al v. Ana Matosantos, et al (the "CRA Action "); and WHEREAS, the California Supreme Court issued an order on August 11, 2011 in the CRA Action directing the parties to show cause why the relief sought in the CRA Action should not be granted and established a briefing schedule designed to facilitate oral argument as early as possible and a decision before January 15, 2012. Pending a decision in the CRA Action, the Court's order stayed the effectiveness of certain portions of the 2011 Redevelopment Legislation and precluded redevelopment agencies from, among other things, incurring new indebtedness, transferring assets, acquiring real property, entering into new contracts or modifying existing contracts, and prohibited redevelopment agencies from making payments for anything other than "enforceable obligations" (as defined in Part 1.8), notwithstanding the fact that the City Council has adopted the Ordinance; and WHEREAS, the Court's order is ambiguous as to whether redevelopment agencies are required to adopt a schedule of those "enforceable obligations" that require payments to be made through the end of calendar year 2011 ( "Enforceable Obligation Payment Schedule "), which, if required, must be adopted within 60 days of the effective date of the 2011 Redevelopment Legislation (i.e., by not later than August 29, 2011); otherwise, a redevelopment agency may not have the ability to make a payment on its enforceable obligations other than payments required to meet obligations with respect to bonded indebtedness; and WHEREAS, while the CRA has requested a clarification from the Court on this issue, the Agency, by the adoption of this Resolution, nevertheless and out of an abundance of caution, seeks to comply with the most conservative response that might be given to the CRA's request for clarification and, therefore, desires to adopt an Enforceable Obligation Payment Schedule and to amend it from time to time, as necessary, for the purpose of ensuring that it is able to meet its commitments under enforceable obligations pending the outcome of the Court's decision in the CRA Action; and WHEREAS, the Agency has duly considered all other related matters and has determined that the Agency's adoption of this Resolution is in the best interests of 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 ANAHEIM REDEVELOPMENT AGENCY DOES IIEREBY 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 Part 1.8, the Agency hereby adopts the Enforceable Obligation Payment Schedule attached hereto as Attachment No. 1. The attached Enforceable Obligation Payment Schedule is that "Enforceable Obligation Payment Schedule" referred to in CRL Sections 34167(h) and 34169 and shall be interpreted and applied in all respects in accordance with such sections and the CRL, to the fullest extent permitted by law. However, the Enforceable Obligation Payment Schedule shall only be applicable to and binding on the Agency to the extent that Part 1.8 of the 2 Agency is applicable to the Agency and requires the adoption of an Enforceable Obligation Payment Schedule. To the extent that Part 1.8 is not applicable to the Agency, whether because of the City's enactment of the Ordinance or for any other reason, the Enforceable Obligation Payment Schedule shall not be binding on or control the Agency's payments on or performance of its obligations. Section 3. The Agency Executive Director is hereby authorized and directed to evaluate potential amendments to the Enforceable Obligation Payment Schedule from time to time as may be appropriate, and to recommend to the Agency Board the adoption of those amendments necessary for the continued payment on and performance of enforceable obligations. Section 4. The Agency Executive Director is further authorized and directed to post the Enforceable Obligation Payment Schedule on the Agency website and to notify the Orange County Auditor- Controller, the State Department of Finance, and the Controller of the State concerning this Resolution, the Enforceable Obligation Payment Schedule, and its online publication. Section 5. This Resolution shall in no way be construed as requiring the City to abide by the 2011 Redevelopment Legislation in the event either, or both, bills are found unconstitutional or otherwise legally invalid in whole or in part, nor shall this resolution effect or give rise to any waiver of rights or remedies the City may have, whether in law or in equity, to challenge the 2011 Redevelopment Legislation. This Resolution shall not be construed as the City's willing acceptance of, or concurrence with, the 2011 Redevelopment Legislation, either ABX1 26 or ABX1 27; nor does this Resolution evidence any assertion or belief whatsoever on the part of the City that the 2011 Redevelopment Legislation is constitutional or lawful. Section 6. The effective date of this Resolution shall be the date of its adoption. THE FOREGOING RESOLUTION is approved and adopted by the governing board of the Anaheim Redevelopment Agency this 23rd day of August , 2011, by the following roll call vote: AYES: Chairman Tait, Agency Members Sidhu, Eastman, Galloway and Murray NOES: None ABSTAIN: None ABSENT: None r Chair 4 an ATTEST: LINDA . AN AL, AG CY SECRETARY Linda N. Andal 85421 3 ATTACHMENT NO. 1 ENFORCEABLE OBLIGATION PAYMENT SCHEDULE [Behind this page.] 4 CO W N N N N N N N N N N + O m CO V 0) G1 A CO N+ 0 m m J O) N A CO N+ 0 m W J 0) (T A W N+ — — — — — (p CO (0 N N N CO 01 (d N N N N (n (n N U1 'D 13 V - 0 13 V - 0 - 0 - 0 - 0 - 0 13 13 - 0 - 0 0 Z 0 0 0 0 0 0 v v v v v v v v v 0 0 v v v v v v D) v 91 v v 01 y v v v D) 0 CO v o 0 3 T 0 y 0 0 N 0 0 2 0 N 0 9) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N (p O D a N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 31 g. - g g - g S F-: S S S S 1 S S S S ! 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