HomeMy WebLinkAboutStaff Report 08/24/2011 1.Art m r o Quin I Ir.;li.. ..11
1858.
DATE:
TO:
FROM:
SUBJECT:
lu o f 9 "Oh"T ai i •i h I, h,
t Item #Y A
�F
August 24, 2011
Honorable Chair and Members of the Petaluma Community Development
Commission through the Executive Director
Ingrid Alverde, Redevelopment/Economic Development Manager
Adoption of PCDC Resolution Adopting an Enforceable Obligation Payment
Schedule Pursuant to Health and Safety Code Section 34169.
RECOMMENDATION
It is recommended that the Petaluma Community Development Commission approve the
Resolution Adopting an Enforceable Obligation Payment Schedule Pursuant to Health and
Safety Code Section 34169.
BACKGROUND
The Governor signed several budget -related bills in late June 2011, including AB xl 26 (The
"Dissolution Act"), which eliminates redevelopment agencies, and AB xl 27(the "Voluntary
Program Act"), which allows an agency to remain active if the City agrees to make annual
payments to the County Auditor -Controller.
DISCUSSION
Since the enactment of the legislation, the California Redevelopment Association filed a lawsuit
with the California Supreme Court ("Court"), California Redevelopment Association, et al. v.
Ana Matosantos, et al. arguing that both Acts are unconstitutional. On August 11, 2011, the
Court, issued an Order and a revised Order respectively staying portions of the Dissolution Act,
all of the Voluntary Program Act and until the Court renders a decision on the case.
Prior to the Court order, cities had until October 1, 2011 to adopt an ordinance agreeing to
annual payments in return for the ability to retain their redevelopment agencies. Agencies were
also required to prepare and approve a Schedule of Enforceable Obligations ("Schedule") within
60 days of the enactment of the legislation unless they adopted the Voluntary Program ordinance
prior to the Schedule due date. That schedule was to include all enforceable contracts to be
fulfilled by a successor if the agency were dissolved and to list all required payments through
December 31, 2011. Many agencies, including Petaluma planned to adopt the schedule because
there was a gap between the schedule due date and the planned Ordinance adoption date. Prior
Agenda Revie
City Attorney Finance hecto City Manager
to the Court order, this action would have been a perfunctory action that would not limit or
justify Agency activities unless the Agency did not adopt the Ordinance and thus dissolve.
Under the new court order, agencies are prohibited from opting into the Voluntary Program, but
are required to approve a Schedule within the 60 day timeframe (June 28, 2011). A revised court
order, issued on August 17, 2011 further clarified that all redevelopment agencies must adopt a
Schedule regardless of their intentions or actions to opt in to the Voluntary Program. During the
period that the Court Order is in effect and until a Court ruling, agencies are prohibited from
entering into any new agreements or indebtedness and are limited to activities and expenditures
included in the approved Schedule.
If the Court rules that the Dissolution Act is constitutional and the Voluntary Program act is
unconstitutional, all redevelopment agencies would be dissolved. In that case, the Schedule
would serve as the basis for all future expenditures by a successor agency. The attached
Schedule includes all enforceable obligations of the Agency including all bonded indebtedness,
contracts and agreements and is consistent with the cooperation agreement between the City and
PCDC approved in January of this year.
FINANCIAL IMPACTS
If the Schedule is not approved any payments made by PCDC through the end of this year, other
than bond debt payments, would be subject to challenge.
ATTACHMENTS
1. Petaluma Community Development Commission Resolution Adopting an Enforceable
Obligations Payment Schedule
2. Enforceable Obligations Payment Schedule
Page 2
ATTACHMENT #1
RESOLUTION NO.
A RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT
COMMISSION ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT
SCHEDULE PURSUANT TO HEALTH AND SAFETY CODE SECTION 34169
WHEREAS, the Petaluma Community Development Commission ("Agency") is a
redevelopment agency formed, existing and exercising its powers pursuant to California
Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("CRL");
WHEREAS, pursuant to Section 34169 of the CRL (enacted pursuant to Assembly Bill
x 1 26), the Agency is required to adopt an Enforceable Obligation Payment Schedule ("EOPS")
that lists all of the obligations that are "enforceable obligations" within the meaning of
subdivision (d) of Section 34167 of the CRL and which includes the following information about
each such obligation:
(A) The project name associated with the obligation.
(B) The payee.
(C) A short description of the nature of the work, product, service, facility, or other
thing of value for which payment is to be made.
(D) The amount of payments obligated to be made, by month, through December 2011;
WHEREAS, on August 11, 2011, and August 17, 2011, in California Redevelopment
Association, et al. v. Ana Matosantos, et al., the California Supreme Court ("Court") issued
Orders staying portions of Assembly Bill x 1 26 and Assembly Bill x 1 27;
WHEREAS, the Court has declined to stay CRL Section 34169;
WHEREAS, the Agency has enforceable obligations, other than and/or in addition to
obligations with respect to bonded indebtedness, for which payments are required;
WHEREAS, an EOPS, a copy of which is attached, has been presented to the Agency,
the Agency is familiar with the contents thereof, and the Executive Director has recommended
approval of said EOPS subject to the contingencies and reservation of rights set forth in this
Resolution;
Page 3
!' „y
Cali ornia! Re
WHEREAS; f development Association, et al. v,.� A na. Matosantos, et al..is
an
challenge that
e thecon titut nal teaf Assembly Billcxl 26 and.Asse ba B11 xllopment agencies to ;
° a '
g Y o Y m .,,Y
WHEREAS, the Agency reserves the right to challenge" the legality of Assembly Bill x 1
26 and Assembly,Bill xl 21;
WHEREAS, the Agency reserves the right to amend the EOPS;
WHEREAS; in adopting the FOPS, the Agency does not intend to waive, nor shall the
Agency be deemed to have waived, any rights the Agency or, its successor may have pursuant to
or in connection with any obligation listed on such EOPS, including without limitation, the right
to modify, amend, terminate: or challenge any obligation listed on such EOPS.
NOW, THEREFORE',; BE ><:T RESOLVER BY THE PETALUMA COMMUNITY
DEVELOPMENT COIGIMISSION WHAT IT HEREBY:
1. Finds that the Recitals sett forth above are true and correct, and are incorporated herein
by reference.
2 Adopts the Enforceable Obligation Payment Schedule attached hereto, subject to all
reservations of rights and contingencies set forth above.
3. Authorizes the Agency Executive Director or designee to take all actions necessary or
appropriate to implement this Resolution, including, without limitation, the posting of this
Resolution and the Enforceable Obligation Payment Schedule on, fhe'Agency's website, and the
provision of notice of adoption of this Resolution and such.Schedule to. the County Auditor -
Controller, the State Controller and the State Department of Finance.
Declares that if,any provision, sentence, clause, section or
art of "this is
be unconstitutional illegal or invalid such finding shall. affect onlysuch'
provision,
sentence, clause;'! section or part, and shall not affect or impair any of the retraining parts.
PASSEIR,,i,,AND ADOPTED by the Board. Members, of the Petaluma Community
Development Commission on the day of August, 2011 by the following vote:
AYES:
NOES:
Page 4
ABS'T'AIN:
Page 5
ATTACHMENT,,2, .
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