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HomeMy WebLinkAboutItem 3c: Resolution 6821 Confirming Mayor's Appointments of Two Members to Oversight Board Regarding Dissolution of Redevelopment Agency of ARc CsoF RN"% rotwilr 00 •'I:C..yY..1.A Mp.0 f.1903 vnitY°it STAFF REPORT Development Services Department DATE: February 21, 2012 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director5'*- By: Jerry Schwartz, Economic Development Manager SUBJECT: CONSIDERATION OF RESOLUTION NO. 6821 CONFIRMING THE MAYOR'S APPOINTMENTS OF TWO MEMBERS TO OVERSIGHT BOARD CREATED BY HEALTH AND SAFETY CODE SECTION 34179 REGARDING DISSOLUTON OF THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA AND RECOMMENDING NAMES FOR APPOINTMENT TO THE OVERSIGHT BOARD BY LOS ANGELES COUNTY SUPERVISOR MICHAEL ANTONOVICH Recommendation: Adopt Resolution No. 6821 SUMMARY: AB 26 provides that a successor agency is to be designated as the successor entity to the former Agency, vested with all authority, rights, powers, duties, and obligations previously vested with the former Agency under the Community Redevelopment Law, with certain exceptions. This successor agency is to be responsible for the wind down of the Agency's affairs. The City elected to be the Agency's successor agency on January 3, 2012. The activities of the City, as successor agency, will be overseen by an oversight board ("Oversight Board"), until such time as all of the debts of the Agency are paid off, all Agency assets liquidated and all property taxes previously paid to the Agency are redirected to local taxing agencies. BACKGROUND: On June 28, 2011, as part of the 2011-2012 State of California budget bill, companion bills Assembly Bill 1X 26 ("AB 26") and Assembly Bill 1X 27 ("AB 27") were enacted, dissolving the Redevelopment Agency of the City of Arcadia ("Agency"), unless the City of Arcadia ("City") elected to participate in the "Alternative Voluntary Redevelopment Program" established by AB 27. On July 18, 2011, a case was filed in the California Supreme Court challenging the constitutionality of AB 26 and AB 27 on behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement of AB 26 and AB 27, pending the Supreme Court's determination of the legality of AB 26 and AB 27. On August 11, 2011, the Supreme Court issued a partial stay of AB 26 that included suspending new redevelopment activity, and a complete stay of AB 27, such that the City and the Agency could not pursue new redevelopment activity under the Alternative Voluntary Redevelopment Program (collectively, "Stay"). On August 17, 2011, the Supreme Court modified the Stay but all new redevelopment activity was still prohibited. On December 29, 2011, the Supreme Court issued its opinion in the Legal Action, upholding AB 26, invalidating AB 27, extending certain statutory deadlines under Health and Safety Code Sections 34170 through 34191. The effect of the ruling was to dissolve all redevelopment agencies in California, including the Arcadia Redevelopment Agency as of February 1, 2012. DISCUSSION Health and Safety Code section 34179, enacted by AB 26, provides that the Oversight Board is to be composed of seven (7) members, selected as follows: 1. One member appointed by the Los Angeles County Board of Supervisors. 2. One member appointed by the Mayor of the City. 3. One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the Agency, which is the type of special district eligible to receive property tax revenues pursuant to Health and Safety Code section 34188. If there are no such special districts within the territorial jurisdiction of the Agency, then the County of Los Angeles may appoint an additional member to represent the public. 4. One member appointed by the Los Angeles County Superintendent of Education to represent schools, if the Superintendent is elected. If the Superintendent is appointed, then the appointment shall be made by the Los Angeles County Board of Education. 5. One member appointed by the Chancellor of the California Community Colleges to represent community college districts in Los Angeles County. 6. One member of the public appointed by the Los Angeles County Board of Supervisors. 7. One member representing the employees of the Agency appointed by the Mayor from the recognized employee organization representing the largest number of former Agency employees employed by the successor agency at that time. Based on Health and Safety Code section 34179, the Mayor is responsible for appointing two members to the Oversight Board. Resolution No. 6821 is drafted such that (1) the Mayor or his designee shall be the member appointed by the Mayor; and (2) Resolution No. 6821 February 21, 2012 Page 2 of 3 the City Manager or his designee shall be the member representing Agency employees. This methodology is proposed to avoid specific names in the Resolution, which would necessitate a modification to the Resolution each time a member changes. The actual names of designees shall be discussed at the meeting and all decisions shall be forwarded to be part of the Oversight Board. The office of Supervisor Michael Antonovich has indicated that he is open to recommendations from the City Council for the two appointments by the Board of Supervisors to the Oversight Board. As part of this item, the Council may want to offer some names to the Supervisor's office. The attached resolution includes a provision for making such recommendations and forwarding them to Supervisor Antonovich. FISCAL IMPACT: The proposed resolution and related actions will have no impact on the General Fund. RECOMMENDATION: Adopt Resolution No. 6821 confirming the Mayor's appointments of two members to the oversight board created by Health and Safety Code Section 34179 regarding dissolution of the Redevelopment Agency of the City of Arcadia and recommending names for appointment to the oversight board by Los Angeles County Supervisor Michael Antonovich. Approved By: 3)18-$44-443 Donald Penman, City Manager Attachment: Resolution No. 6821 Resolution No. 6821 February 21, 2012 Page 3 of 3 RESOLUTION NO. 6821 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, CONFIRMING THE MAYOR'S APPOINTMENTS OF TWO(2) MEMBERS TO THE OVERSIGHT BOARD CREATED BY HEALTH AND SAFETY CODE SECTION 34179 ET SEQ., REGARDING DISSOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA AND RECOMMENDING NAMES FOR APPOINTMENT TO THE OVERSIGHT BOARD BY LOS ANGELES COUNTY SUPERVISOR MICHAEL ANTONOVICH WHEREAS, the City Council of the City of Arcadia ("City") approved and adopted the Redevelopment Plan for the Central Redevelopment Project Area ("Redevelopment Plan"), covering certain properties within the City (the "Project Area"); and WHEREAS, the Redevelopment Agency of the City of Arcadia ("Agency")has been engaged in activities to implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law(Health and Safety Code§ 33000, et seq.) ("CRL"); and WHEREAS, on June 28, 2011, as part of the 2011-2012 State of California budget bill, companion bills Assembly Bill 1X 26 ("AB 1X 26") and Assembly Bill 1X 27 ("AB 1X 27")were enacted, suspending all new redevelopment activity of the Agency and dissolving the Agency, unless the City elected to participate in the "Alternative Voluntary Redevelopment Program" established by AB 1X 27 and paid an annual "community remittance" payment to the County of Los Angeles; and WHEREAS, on July 18, 2011, a Petition for Writ of Mandate was filed in the Supreme Court of the State of California in the matter of California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861 ("Legal Action"), challenging the constitutionality of AB 1X 26 and AB 1X 27 on behalf of cities, counties and 1 redevelopment agencies and requesting a stay of enforcement of AB 1X 26 and AB 1X 27, pending the Supreme Court's determination of the legality of AB 1X 26 and AB 1X 27; and WHEREAS, on August 11, 2011, the Supreme Court issued an order in the Legal Action granting a partial stay of AB 1X 26, exclusive of Health and Safety Code Sections 34161 through 34169.5 (suspending new redevelopment activity), and a complete stay of AB 1X 27, such that the City and the Agency could not pursue new redevelopment activity under the Alternative Voluntary Redevelopment Program (collectively, "Stay"); and WHEREAS, the Supreme Court modified the Stay on August 17, 2011, such that the Stay no longer affects Health and Safety Code Sections 34167.5 through 34169.5, in addition to California Health and Safety Code Sections 34161 through 34167, or California Health and Safety Code Sections 34194(b)(2); and WHEREAS, on December 29, 2011, the Supreme Court issued its opinion in the Legal Action, upholding AB 1X 26, invalidating AB 1X 27, extending certain statutory deadlines under Health and Safety Code Sections 34170 through 34191, and dissolving all redevelopment agencies throughout the State, effective February 1, 2012; and WHEREAS, AB 1X 26 designates a successor agency to the dissolved Agency, and provides that, with certain exceptions, all authority, rights, powers, duties and obligations previously vested with the dissolved Agency, under the CRL, are vested in the successor agency; and WHEREAS, on January 3, 2012, the City Council elected to serve as the successor agency to the dissolved Agency; and WHEREAS, AB 1X 26 further provides that the City's actions, as successor agency to the dissolved Agency, are subject to review and approval by an oversight board 2 ("Oversight Board"), to be created pursuant to Health and Safety Code section 34179 et seq.; and WHEREAS, the Oversight Board is to be comprised of seven appointees from affected local taxing entities and the City, including two(2)members to be appointed by the Mayor; and WHEREAS, at its meeting of February 17, 2012, the Mayor of the City of Arcadia announced the appointments of the Mayor or his designee, as the Mayor's representative to the Oversight Board, and the City Manager or his designee, as the representative from the employees of the former Agency; and WHEREAS, the City Council desires to confirm the Mayor's appointments to the Oversight Board; and WHEREAS, two of the appointments to the Oversight Board are made by the Los Angeles County Board of Supervisors; and WHEREAS, the City Council desires to provide some names to Supervisor Michael Antonovich to be considered for the Oversight Board; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMIN AND RESOLVE AS FOLLOWS: SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated into this Resolution by this reference. SECTION 2. Confirmation of Mayoral Appointments. The City Council hereby confirms the appointment of the Mayor or his designee, as the Mayor's representative to 3 representative to the Oversight Board, and the City Manager or his designee, as the representative from the employees of the former Agency. SECTION 3. Recommendations of Names to be Forwarded to Supervisor Michael Antonovich. The City Council recommends certain specific names to be forwarded to Supervisor Michael Antonovich for consideration as Los Angeles County appointments to the Oversight Board. SECTION 4. Implementation. The City Council hereby authorizes and directs the City Manager to take any action necessary to carry out the purposes of this Resolution, including, but not limited to, notifying the Los Angeles County Auditor-Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Resolution and the Mayor's appointments of the above-named people to the Oversight Board, in accordance with AB 1X 26, and notifying Supervisor Michael Antonovich of the City Council's recommendations. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption. SECTION 7. Certification. The City Clerk shall certify to the adoption of this Resolution. 4 Passed, approved and adopted this day of , 2012. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: Cek,„ P. . Stephen P. Deitsch City Attorney 5