HomeMy WebLinkAboutORD 1404 (2011)ORDINANCE NO. 1404
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34193 TO ELECT AND IMPLEMENT PARTICIPATION BY
THE ...CITY:- OF- TUSTIN_ AND THE TUSTIN COMMMUNITY
REDEVELOPMENT AGENCY IN THE .ALTERNATIVE VOLUNTARY
REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW. (4/STNS VOTE
REQUIRED.)
City Attorney Summary
On June 29, 2011, the Governor signed a law dissolving all
redevelopment agencies. At the same time, the Governor signed a law
that provides a city the option to continue the existence of its
redevelopment agency subject to a series of new conditions and
commitments - primarily commitments to make payments to other
agencies to be used for special district and educational purposes.
Adoption of this Urgency Ordinance would enable the continued existence
of the Tustin Community Redevelopment Agency, subject to the
requirements in the new State law. As an urgency ordinance, a 4/5ths
vote is required to approve the ordinance.
THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, FINDS:
A. Pursuant to the California Community Redevelopment Law (Health and Safety
Code Section 33000 et seq., the "Redevelopment Law"), the City Council (the "City
Council") of the City of Tustin (the "City") adopted an ordinance declaring the need for
the Tustin Community Redevelopment Agency {the "Agency") to function in the City.
B. Also in accordance with the Redevelopment Law, the City Council has adopted
Redevelopment Plans, and the Agency is responsible for implementing the
Redevelopment Plans pursuant to the Redevelopment Law.
C. ABX1 26 (the "Dissolution Act") and ABX1 27 (the "Voluntary Program Act;" and
together with the Dissolution Act, the "Redevelopment Restructuring Acts") have been
enacted to significantly modify the Redevelopment Law generally as follows:
(1) The Dissolution Act first immediately suspends all new redevelopment
activities and incurrence of indebtedness, and dissolves redevelopment agencies
effective October 1, 2011; and
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(2) The Voluntary Program Act, through the addition of Part 1.9 to the
Redevelopment Law (the "Alternative Voluntary Redevelopment Program"), then
allows a 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.
D. .Specifically, ...Section 34193{a) of _the Redevelopment Law. {as added. to the
Redevelopment Law by the Voluntary Program Act) authorizes the City Council to enact
an ordinance to comply with Part 1.9 of the Redevelopment Law, thereby exempting the
Agency from the provisions of the Dissolution Act, and enabling the Agency to continue
to exist and function under the Redevelopment Law, so long as the City and the Agency
comply with the Alternative Voluntary Redevelopment Program set forth in Part 1.9 of
the Redevelopment Law.
E. Through the adoption and enactment of this Ordinance, it is the intent of the City
Council to enact the ordinance described in Section 34193(a) of the Redevelopment
Law and to participate for itself and on behalf of the Agency in the Alternative Voluntary
Redevelopment Program set forth in Part 1.9 of the Redevelopment Law.
F. Pursuant to Section 34193.2(b) of the Redevelopment Law, the City Council
understands that participation in the Alternative Voluntary Redevelopment Program
requires remittance of certain payments as set forth in the Voluntary Program Act {as
further described below), and also constitutes an agreement on the part of the City, in
the event the City fails to make such remittance payments, to assign its rights to any
payments owed by the Agency, including, but not limited to, payments from loan
agreements, to the State of California.
G. The City and Agency intend to execute an agreement pursuant to CRL Section
34194.2, whereby the Agency shall transfer portions of its tax increment to the City in
amounts equal to the remittances which the City is required to make pursuant to the
City's participation in the Alternative Voluntary Redevelopment Program.
H. The City Council does not intend, by enactment of this Ordinance, 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.
I. The City is aware that the validity, passage and applicability of ABx1 26 and
ABx1 27 may become the subject of a judicial challenge. The City, by adopting this
Ordinance, 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 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;
J. The dissolution of the Agency would be detrimental to, and cause irreparable
harm to, the community and to the health, safety, and economic well-being of the
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citizens of the City. The types of activities and projects made possible, implement 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.
K. The City Council has duly considered all other related matters and has
determined that the City's participation in the Alternative..-Voluntary Redevelopment
Program is in the best. interests of the City, and. the health, safety, and welfare of its
residents, and in accordance with the public purposes and provisions of applicable state
and local laws and requirements.
L. This Ordinance is adopted for the immediate preservation of the public peace,
health and safety and the following facts evidence the urgency hereof. The City Council
finds that each of these grounds independently is sufficient grounds for the immediate
enactment of this Ordinance on an urgent basis:
(1) Delay in the operative date of this Ordinance would delay the Agency's
ability to approve the agreements necessary to ensure earthwork activity begins
on Tustin Ranch Road before the fall rainy season. If construction of storm drain
work and grading for Tustin Ranch Road are not commenced before the rainy
season, a threat to the public peace, health, and safety would occur. As a result,
this Ordinance is needed for the immediate preservation of the public peace,
health and safety.
(2) 2010 Tax Allocation Bonds (MCAS Tustin Project Area) issued in
November, 2010 require the Agency to move forward with contracts and other
Agency implementation activities in the immediate future to meet obligations
under the Tax Reform Act. Delay in the operative date of the Ordinance would
delay the approval of such contracts, and thus could impair the ability of the
Agency to comply with the banded obligations, and delay or prevent construction
of these vital infrastructure facilities.
(3) Delay of construction of the Tustin Ranch Road and related infrastructure
could also delay commencement of operation of Fire Station 37, which opening is
tied to the opening of the Tustin Ranch Road extension. Even were the Fire
Station to commence operation, however, construction of Tustin Ranch Road will
provide a needed and vital link between the Fire Station on the south side of
Edinger and commercial and residential communities north of Edinger. As a
result, the immediate effectiveness of this Ordinance is necessary to avoid
delays in the construction of the project necessary for the immediate preservation
of the public peace, health and safety.
(4) This Ordinance is necessary to allow the contracts for the Tustin Ranch
Road project to be issued, thereby ensuring draw-downs of bond proceeds occur
consistent with obligations under the Tax Reform Act and to allow the City to
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ensure that infrastructure obligations are met not only under the bond measure
but obligations required for private development to occur within the Tustin Legacy
project as required under the Final Environmental Impact Report/Environmental
Impact Statement and phasing requirements contained in Section 4.4 of the
MCAS Tustin Specific Plan. This Ordinance would permit Agency
implementation activities to continue immediately and allow award of -a contract
for Tustin Ranch Road, .Phase 1.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN
AS FOLLOWS:
SECTION I. ENACTMENT OF ORDINANCE PURSUANT TO REDEVELOPMENT
LAW SECTION 34193(a)
To the extent required by law to maintain the existence and powers of the
Agency under the Redevelopment Law (including the Redevelopment Restructuring
Acts), the City Council hereby enacts the ordinance authorized by Section 34193(a) of
the Redevelopment Law, hereby the City, on behalf of itself and the Agency, elects to
and will comply with the provisions of Part 1.9 of the Redevelopment Law, including the
making of the community remittance payments called for in Section 34194 of the
Redevelopment Law (the "Remittance Payments"), and whereby the Agency will no
longer be subject to dissolution or the other prohibitions and limitations of Parts 1.8 and
1.85 of the Redevelopment Law as added by the Dissolution Act.
SECTION II. ADDITIONAL UNDERSTANDINGS AND INTENT
It is the understanding and intent of the City Council that, once the Agency is
again authorized to enter into agreements under the Redevelopment Law, the City will
enter into an agreement with the Agency as authorized pursuant to Section 34194.2 of
the Redevelopment Law, whereby the Agency will transfer annual portions of its tax
increment to the City in amounts not to exceed the annual Remittance Payments (the
"Agency 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 Agency Transfer Payments or from other funds that
become available as a result of the City's receipt of the Agency 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 Agency Transfer Payments and/or other assets transferred to the City in
accordance with the Voluntary Program Act.
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SECTION III. AUTHORIZATION OF IMPLEMENTING ACTIONS
The City Manager or the City Manager's designee is hereby authorized, on
behalf of the City, to take any actions necessary to implement this Ordinance and
comply with the Voluntary. Program Act, ira,+cluding, without limitation, providing required
notices to the. County. Auditor-Controller, .the.. State Controller,. and.. the Department of
Finance, entering into any agreements with the Agency to obtain the Agency Transfer
Payments, and making the Remittance Payments. The City's Finance Director, in
consultation with the City Manager and Assistant City Manager are hereby authorized,
without further direction from the City Council, to review and submit any required and
supportable appeal to the California Department of Finance pursuant to provisions and
procedures contained in AB 27.
SECTION IV. 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 appropriate environmental review shall be completed in
accordance with CEQA prior to the commencement of any future Agency-supported
project or program. The Council therefore directs that a Notice of Exemption be filed
with the Orange County Clerk in accordance with the CEQA Guidelines.
SECTION V. ENACTMENT AND EFFECTIVE DATES
This urgency Ordinance is enacted, and shall take effect, immediately upon its
adoption by a four-fifths (4!5) vote of the City Council.
SECTION VI. SEVERABILITY.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance
is for any reason. held to be invalid or unconstitutional, such decision shall not affect the
validity of the remaining portions of this Ordinance. The City Council of the City of Tustin
hereby declares that it would have adopted this Ordinance and each section,
subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any
one or more sections, subsections, sentences, clauses, phrases, or portions be
declared invalid or unconstitutional.
Ordinance No. 1404
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PASSED AND ADOPTED, at a regular meeting of the City Council for the City of
Tustin on the 19t" day of July, 2011.
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`~_..w..JE~tRY AMANTE,_ __
Mayor
ATTEST:
PAMELA STOKER,
City Clerk
APPROVED AS TO FORM: ,--~~ ,
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DOUGLAS HOLLAND
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1404
PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, does hereby certify that the whole number of the members of the City
Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1404
was passed and adopted at the regular meeting of the City Council held on the 19t" day
of July, 2011, by the following vote:
COUNCILPERSONSAYES: Amante, Nielsen, Gavello, Gomez, Murray (5)
COUNCILPERSONS NOES: None (Q)
COUNCILPERSONS ABSTAINED: None (~)
COUNCILPERSONS ABSENT: None (0}
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PAMELA STOKER,
City Clerk
Ordinance No. 1404
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