HomeMy WebLinkAboutResolution No. 11-7299RESOLUTION NO. 11-7299
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING A REMITTANCE AGREEMENT BY AND BETWEEN THE CITY
OF DOWNEY AND THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF DOWNEY, PURSUANT TO THE AUTHORITY SET FORTH IN
HEALTH AND SAFETY CODE SECTION 34194.2 (AB IX 27).
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted
and the Governor signed, from the 2011-12 First Extraordinary Session1 Assembly Bills IX 26
and IX 27 (“AB IX 26” and “AB IX 27”), requiring that each redevelopment agency be
dissolved unless the community that created it enacts an ordinance committing it to making
certain payments; and
WHEREAS, on August 23, 2011, the City Council adopted Ordinance No. 11-1289
(Urgency), and on September 13, 2011, the City Council adopted Ordinance No. 11-1290
(Regular) (the “Ordinances”), to effect the City’s participation in the “Alternative Voluntary
Redevelopment Program,” established pursuant to AB IX 27, and thereby prevent the
dissolution of the Community Development Commission of the City of Downey as a
redevelopment agency (“Commission”) and enable the continuance of the Commission as a
redevelopment agency and its operations and programs; and
WHEREAS, the Alternative Voluntary Redevelopment Program requires the City to
make certain remittance payments each fiscal year to the county auditor-controller to benefit
schools and certain special districts; and
WHEREAS, Health and Safety Code Section 34194.2, a section within AB IX 27,
authorizes the City to enter into an agreement with the Commission, whereby the Commission
will transfer a portion of its tax increment to the City, in an amount not to exceed the annual
remittance required each year pursuant to the Alternative Voluntary Redevelopment Program,
as set forth in Chapter 3 of Part 1.9 of Division 24 of the Health and Safety Code; and
WHEREAS, a Remittance Agreement between the City and Commission, consistent
with Health and Safety Code Section 34194.2, has been prepared and presented to the City
Council and Commission Board for consideration; and
WHEREAS, as of the date hereof, the California Supreme Court has exercised original
jurisdiction in California Redevelopment Association, et al., Petitioners v. Ana Matosantos, et al.,
Respondents, Case No. S194861, a lawsuit challenging the constitutionality and validity of AB
IX 26 and AB IX 27, the Court issued a partial stay on the enforcement of AB IX 26 and AB IX
27, and the Court has indicated its intent to issue a ruling in the case in January 2012; and
WHEREAS, in light of the stay issued by the Court, the approval of the Agreement is
subject to the condition subsequent that the Court upholds the constitutionality and validity of
both AB IX 26 and AB IX 27 which would then implement the City’s remittance payment
obligation under AB IX 27, as described in the Recitals to the Remittance Agreement, and
require the payments by the Commission to the City as provided in the Remittance Agreement
and subject to the terms of the Remittance Agreement; and
WHEREAS, as set forth in Sections 5 and 15 of the Remittance Agreement, if the
California Supreme Court, or any other court, determines that either AB IX 26 or AB IX 27, or
both, are unconstitutional or otherwise legally invalid, and all appeals therefrom are exhausted
RESOLUTION NO. 11-7299
PAGE TWO
or unsuccessful, or time for filing an appeal therefrom has lapsed, the Remittance Agreement
shall automatically, and without the need for any further action by the City Council, Commission
Board of Directors, or any City or Commission officer, official, employee, agent, or
representative, be terminated and of no further force and effect;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVES AS FOLLOWS:
SECTION I.The foregoing Recitals are incorporated herein and made a part hereof.
SECTION 2. The Remittance Agreement, in the form presented concurrently with this
Resolution, on file with the City Clerk, is hereby approved. The Mayor is authorized and
directed to sign the Remittance Agreement on behalf of the City.
SECTION 3. The City Manager and his authorized designees are authorized and
directed to take such other and further actions, and to sign such other and further documents
and instruments, as may be necessary to implement and effect this Resolution and the
Remittance Agreement on behalf of the City.
APPROVED AND ADOPTED this 27R1 day of September, 2011.
ATTEST:
(-L
MR[
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council
of the City of Downey at a regular meeting held on the 27th day of September, 201 1, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN :
Council Members: Brossmer, Gafin, Guerra, Vasquez, Mayor Marquez
Council Member: None
Council Member: None
Council Member: None
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