HomeMy WebLinkAboutOrdinance 2420 N.C.S. 10/17/20112
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ORDINANCE NO. 2420 N.C.S
FFECTIVE DATE
OF ORDINANCE
November 16, 201 1
Introduced by
Gabe Kearney
Seconded by
Teresa Barrett
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA, 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
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety
Code Section 33000 et seq. (the "CRL"), the City Council (the "City Council") of the City of
Petaluma (the "City") approved and adopted the Redevelopment Plan for the Central Business
District Redevelopment Project and the Redevelopment Plan for the Petaluma Community
Development Redevelopment Project ("Redevelopment Plans") covering certain properties
within the City (the "Project Areas"); and,
WHEREAS, the Petaluma Community Development Commission ("Commission") is a
redevelopment agency engaged in activities to execute and implement the Redevelopment
Plans pursuant to the CRL; and,
WHEREAS, the Commission has undertaken redevelopment projects in the Project Areas
to eliminate blight, improve public facilities and infrastructure, construct and renovate
affordable housing, and work with private industry to create jobs and expand the local
economy; and,
WHEREAS, the Commission has plans to implement a variety of redevelopment programs
and projects in the future to continue to eliminate and prevent blight, stimulate and expand
economic growth, and improve public infrastructure: and,
WHEREAS, ABxl 26 (the "Dissolution Act") and ABxI 27 (the "Voluntary Program Act"),
(collectively, the "Redevelopment Restructuring Acts"), have been enacted to significantly
modify the CRL generally as follows: the Dissolution Act immediately suspends all new
redevelopment activities and incurrence of indebtedness, and dissolves redevelopment
agencies effective October 1, 2011, and the Voluntary Program Act, through the addition of
Part 1.9 to the CRL (the "Voluntary Alternative Redevelopment Program"), allows a
Ordinance No. 2420 N.C.S.
Page 1
redevelopment agency to avoid dissolution under the Dissolution Act by opting into an
alternative voluntary redevelopment program requiring specified annual contributions to local
school and special districts; and,
WHEREAS, specifically, Section 34193(a) of the CRL (as added to the CRL by the
Voluntary Program Act) authorizes the City Council to enact an ordinance to comply with Part
1.9 of the CRL, thereby exempting the Commission from the provisions of the Dissolution Act, and
enabling the Commission to continue to exist and function under the CRL, so long as the City
complies with the Voluntary Alternative Redevelopment Program; and,
WHEREAS, through the adoption of this Ordinance, it is the intent of the City Council to
enact the ordinance described in Section 34193(a) of the CRL and to participate in the
Voluntary Alternative Redevelopment Program set forth in Part 1.9 of the CRL; and,
WHEREAS, pursuant to Section 34193.2(b) of the CRL, participation in the Voluntary
Alternative Redevelopment Program requires remittance of certain payments as set forth in the
Voluntary Program Act (as further described below); and,
WHEREAS, by adoption of this Ordinance the City Council does not intend to waive any
rights of appeal regarding the amount of any remittance payments established by the California
Department of Finance, as provided in the Voluntary Program Act, or to waive its rights to object
to the Redevelopment Restructuring Acts, or any portions of them, in general; and,
WHEREAS, on August 11, 2011, the California Supreme Court (the "Court") agreed to
review the California Redevelopment Association and League of California Cities' petition
challenging the constitutionality of the Redevelopment Restructuring Acts and issued an order
granting a partial stay on specified portions of the Redevelopment Restructuring Acts, as
modified on August 17, 2011 and affirmed on September 14, 2011 (the "Stay"), including a stay
of the provisions of the Voluntary Program Act; and,
WHEREAS, accordingly, the City Council intends to adopt this Ordinance understanding
that it will be effective only upon the lifting of the Stay and the Court's determination that the
Voluntary Program Act is constitutional.
THE CITY COUNCIL OF THE CITY OF PETALUMA, 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 Voluntary Alternative Redevelopment Program. To the
extent required by law to maintain the existence and powers of the Commission under the CRL
(including the Redevelopment Restructuring Acts), the City Council hereby enacts the
ordinance authorized by Section 34193(a) of the CRL, whereby the City elects to and will comply
with the provisions of Part 1.9 of the CRL, including the making of the community remittance
payments called for in Section 34194 of the CRL (the "Remittance Payments"), and whereby the
Commission will not be subject to dissolution or the other prohibitions and limitations of Parts 1.8
and 1.85 of the CRL as added by the Dissolution Act.
Section 3. Effect of Stay or Determination of Invalidity. The City shall not make any
Remittance Payments during the Stay or in the event the Court or any court of competent
jurisdiction determines that ABxl 26 and/or ABxI 27 are unconstitutional and therefore invalid,
and all appeals therefrom are exhausted or unsuccessful, or the time for appeal therefrom has
Ordinance No. 2420 N.C.S. Page 2
lapsed. Any Remittance Payments 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 of unconstitutionality. If there is a final determination of invalidity of ABxI 26
and/or ABxI 27, this Ordinance shall be deemed to be null and void and of no further force or
effect.
Section 4. 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 of the CRL, whereby the Commission will transfer annual portions of its tax
increment to the City in amounts not to exceed the annual Remittance Payments (the
"Commission Transfer Payments") to enable the City, directly or indirectly, to make the annual
Remittance Payments. Unless otherwise specified by resolution of the City Council, it is the City
Council's intent that the City's annual Remittance Payments shall be made exclusively from the
Commission Transfer Payments or from other funds that become available as a result of the
City's receipt of the Commission Transfer Payments. The City Council does not intend, by
enactment of this Ordinance, to pledge any of its general fund revenues or other assets to make
the Remittance Payments, it being understood by the City Council that any Remittance
Payments will be funded solely from the Commission Transfer Payments and/or other assets
transferred to the City in accordance with the Voluntary Program Act.
Section 5. Implementation. The City Manager or his designee is hereby authorized to
take all necessary actions to implement this Ordinance and comply with the Voluntary Program
Act, including, without limitation, providing required notices to the County Auditor -Controller, the
State Controller, and the Department of Finance, entering into any agreements with the
Commission to obtain the Commission Transfer Payments, and making the Remittance
Payments.
Section 6. CEQA. 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. The City
Council therefore directs that a Notice of Exemption be filed with the County Clerk of the
County of Sonoma in accordance with CEQA Guidelines.
Section 7. 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 11 English Street, Petaluma, CA 94952. The custodian for these records is the City
Clerk.
Section 8. Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of the Ordinance are severable. The City Council
hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any
particular portion thereof.
Section 9. Publication. The City Clerk is hereby directed to publish or post this
Ordinance or a synopsis thereof for the period and in the manner provided by the City Charter
and any other applicable law.
Ordinance No. 2420 N.C.S. Page 3
Section 10. Enactment and Effective Dates. This Ordinance shall be deemed enacted
as of the date of its adoption for purposes of Section 34193(a) of the CRL, and shall take effect
and will be enforceable thirty (30) days after its adoption, conditioned upon the lifting of the
Stay and the Court's determination that the Voluntary Program Act is constitutional.
INTRODUCED and ORDERED posted/published this 3rd day of October 2011.
ADOPTED this 17th day of October 2011, by the following vote:
Ayes: Albertson, Barrett, Mayor Glass, Harris, Vice Mayor Healy, Kearney, Renee
Noes: None
Abstain: None
Absent: None
ATTEST:
Mayor
APPROVED AS 170 FORM:
Deputy City Clerk City A
Ordinance No. 2420 N.C.S. Page 4