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HomeMy WebLinkAbout2011-08-16 e-packet SP F CIAL MEETING CITY COUNCIL ( \i'N s�v�, AND "�' REDEVELOPMENT AGENCY ,.: OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: CITY HALL CONFERENCE ROOM 400 GRANT) AVENUE SOUTH SAN FRANCISCO) TUESDAY, AUGUST 16, 2011 6:30 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco and the South San Francisco Redevelopment Agency will hold a Special Meeting on Tuesday, the 16th day of August, 2011, at 6: 30 p.m., in thc City Hall Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: 1. Call to Order. 2. Roll Call. 3. Agenda Review. 4. Public Comments — comments are limited to items on the Special Meeting Agenda. 5. Consideration of (1) an ordinance of the City of South San Francisco determining that the City will comply with the voluntary alternative redevelopment program pursuant Part 1.9 of Division 24 of the California Health and Safety Code in order to permit continued existence and operation of the Redevelopment Agency and (2) a remittance agreement between the City and the South San Francisco Redevelopment Agency. 1. Waive reading and introduce an Ordinance of the City Council of the City of South San Francisco determining that. it will comply with the voluntary alternative redevelopment program pursuant Part 1.9 of Division 24 of the California Health and Safety Code in order to permit continued existence and operation of the Redevelopment Agency of the City of South San Francisco. 2. A Resolution of tyre City of South San Francisco approving a Remittance Agrecrnentbetwecn the City of South San Francisco and the South San Francisco Redevelopment Agency. 3. A Resolution Redevelopment Agency of the City of South San Francisco approving a Remittance Agreement between the City of South San Francisco and the South San Francisco Redevelopment Agency. 6. Closed Session: Conference with Legal Counsel. Existing Litigation. (Pursuant to Government Code Section 54956.9(a).) SSF v. Fuld et. al, Deputy City Clerk and Agency Clerk, City of South San Francisco and South San Francisco Redevelopment Agency SPECIAL CITY COUNCIL & REDEVELOPMENT AGENCY MEETING AUGUST 16, 2011 AGENDA PAGE 2 O 09 Fcsro tarr eport DATE: August 16, 2011 TO: Honorable Mayor and City Council Chairperson and Board Members, Redevelopment Agency FROM: Marty Van Duyn, Assistant City Manager SUBJECT: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, 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 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO RESOLUTION AUTHORIZING A REMITTANCE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE REDEVELOPMENT AGENCY OF SOUTH SAN FRANCISCO RECOMMENDATION It is recommended that the City Council waive reading and introduce an ordinance determining that the City of South San Francisco will comply with the voluntary alternative redevelopment program pursuant to Part 1.9 of Division 24 of the Health and Safety Code in order to permit the continued existence and operation of the Redevelopment Agency, and that the City Council and Redevelopment Agency approve a resolution authorizing a remittance agreement (Agreement) between the City of South San Francisco (City) and the Redevelopment Agency of South San Francisco (Agency). BACKGROUND/DISCUS SION The Governor has signed into law ABX1 26 which provides for the suspension of redevelopment activities as of the effective date of the bill and subsequent dissolution of redevelopment agencies, and ABX1 27 which provides that the suspension and dissolution provisions of the legislation will not apply to individual agencies if the legislative body of the agency's sponsoring entity (the City Council) adopts an ordinance committing to pay specified amounts for distribution to schools and other taxing entities. This staff report seeks Council approval to "opt in" to the provisions of AB 27. Staff Report Subject: Resolution Authorizing a Remittance Agreement Between The City and the Redevelopment Agency Page 2 of 5 AB 27 describes the "voluntary" payment program that permits agencies to continue operations if the legislative body of the city that formed the agency agrees to make payments for the benefit of schools and local entities. The legislation provides as follows: ♦ Suspension and dissolution do not apply to redevelopment agencies whose city adopts an "opt in" ordinance committing the city to make required payments, provided that ordinance is adopted by November 1, 2011. ♦ The City may execute a contract with the Redevelopment Agency pursuant to which the Agency agrees to transfer tax increment to the City in an amount not greater than the remittance required for that year "for the purpose of financing activities within the redevelopment area that are related to accomplishing the project area goals." ♦ The City must assign to the State any rights the City has to receive payments owed from the Redevelopment Agency (including loan payments) if the City fails to make the payments. ♦ Payments will commence on January 15, 2012 and will be due on January 15 and May 15 thereafter, and the Agency's share for 2011 -12 is $15.5 million. For 2011 -12 only, agencies whose city complies with the payment requirements are exempt from making deposits to the housing set -aside fund if the agency finds it is unable to meet its debt and current program obligations including the agency's obligation to transfer funds to the city in the amount of the required city payment if the city and agency have executed an agreement requiring such transfer. This provision does not apply to South San Francisco, as the Agency has sufficient funds available to make the 2011 -12 payments totaling $15, 547,791. The following are some of the issues that the City Council should consider in determining whether it will make the payments required by AB 27 (with funds from the Agency) in order to permit the Agency to continue to function, or whether the City will permit the Agency to be dissolved pursuant to AB 26. The text in italics provides a summary response to the most critical questions. ♦ Will the Agency and City have sufficient unencumbered funds available to make the required payments? - Pursuant to the terms of the proposed Remittance Agreement between the Agency and the City, the Agency will pay the City the amount of annual payment amount each year. The Agency has sufficient unencumbered funds to make the required payments. To be prudent the Agency will need to maintain a reserve fund to ensure that funds are available for future payments. ♦ What would be the amount that the City general fund would receive if the Agency dissolves and the City receives a proportional share of the tax increment that would otherwise be paid to the Agency? - After paying for programs that are currently paid for by RDA funds (i.e. downtown code enforcement, downtown bike patrol), the City General Fund would receive approximately $1.6 million dollars annually in additional funding. Staff Report Subject: Resolution Authorizing a Remittance Agreement Between The City and the Redevelopment Agency Page 3 of 5 ♦ What is the remaining life of the redevelopment project areas and potential tax increment available over the life of the plan? The life of the project areas varies according to the Plan effectiveness date for each area. The Plan effectiveness dates vary from June, 2022 in the Gateway to May, 2035 in the Downtown Added Area. Over this time period, the RDA is estimated to collect $247,400,000 (in net present value dollars) in non - affordable housing 80% funds if the proposed plan amendment is approved after deducting for pass through payments, debt payments, SERAF payments and 20% funds dedicated to low and moderate income housing. From this amount the Agency will pay the City who will in turn pay the County $15,547,791 for the 2011 -12 voluntary payment obligations, approximately $3,798,869 for 2012 -13 and then likely increasing amounts each year thereafter. ♦ Does the Agency have projects planned or in progress? — Yes, all of the items on the 10 year plan discussed as part of the proposed RDA Plan Amendment (i.e. El Camino Chestnut area infrastructure improvements and site remediation, Oak Avenue extension, Caltrain station improvements, completion of the retail and office space in the parking garage, library, and downtown breezeway, etc.). ♦ Would dissolution jeopardize the availability of, or compliance with the requirements of, state or federal grants or other funding sources? Dissolution would not jeopardize state or federal grants the City has recently received since RDA matching funds are obligated through contractual agreements with the state or federal government. However, the City's ability to compete for future state and federal grants would severely diminish if the RDA was dissolved since RDA is the City's primary source for matching funds. Many funding sources require 25% to 60% of total development costs to be provided by the redevelopment agency for a project to be competitive for state tax credit financing. RDA matching funds have recently been used for low - income housing tax credits, HOME program funds, green initiatives, and a vast majority of projects envisioned for the project areas. ♦ What assets (property, fund balances) does the Agency stand to lose if the Agency dissolves? • $38,000,000 in funds not obligated to 3 parties through enforceable agreements • $26,934,000 in housing funds not obligated to 3 1.d parties through enforceable agreements • Land holdings presently owned by the Agency or conveyed to the City from the Agency since January 1, 2011. ♦ What is the effect of Agency dissolution on the affordable housing goals of the City? This would severely limit and in some instances eliminate the City's future ability to meet its very low, low and moderate income housing requirements as the Agency would lose future housing funding and land held for future multi family affordable housing development. The Agency's ability to compete for other funding sources would be severely limited in a market that requires Staff Report Subject: Resolution Authorizing a Remittance Agreement Between The City and the Redevelopment Agency Page 4 of 5 Agency contributions of 25% to 60% of total development costs to be competitive for state and federal housing fund programs. The proposed ordinance and resolutions contain language that provides that the City Council and Redevelopment Agency are taking these actions under protest and without waiving any rights that they may have if the litigation filed by the LOCC /CRA challenging the validity of ABX1 26 and ABX2 27 is successful. The attached Resolution also gives the Finance Director the authority to make accounting adjustments to the budgets for the Redevelopment Agency and the Public Improvement Agreement Fund, which was set up in March 2011, to reflect the Council's and Agency's desire to continue the operations of the Redevelopment Agency under the terms of AB 27. FISCAL IMPACT If the City Council chooses to keep RDA open by participating in the so called "voluntary" program, it would have to make a one -time payment to the County for distribution to taxing entities of $15.5 million for fiscal year 2011 -12, and approximately $3.8 million in 2012 -13 and increasing to approximately $6.3 in fiscal year 2031 -32. These amounts would be drawn from tax increment paid to the Agency estimated to be $36 million in fiscal year 2011 -12 and increasing to $64.0 million in fiscal year 2032 -33 with projected growth in tax increment. That is, the amount payable in future years would increase or decrease annually based on the overall increase (or decrease) in property taxes in the Redevelopment areas. Assuring all 2011 -12 operating and capital budgets are spent by year end, staff estimates that the Agency will have at least $13.4 million in reserves still available to be appropriated at the end of 2011 -12 for new redevelopment projects, after making the 2011 -12 "voluntary" payment and all other Agency obligations. CONCLUSION Because many more important City (and community) goals can be achieved by keeping the Redevelopment Agency active, it is recommended that the City Council waive reading and introduce an ordinance determining that the City of South San Francisco will comply with the voluntary alternative redevelopment program pursuant to Part 1.9 of Division 24 of the Health and Safety Code in order to permit the continued existence and operation of the Redevelopment Agency, and that the City Council and Redevelopment Agency approve a resolution authorizing a remittance agreement (Agreement) between the City of South San Francisco (City) and the Redevelopment Agency of South San Francisco (Agency). Prepared b ...roved . - �J L.) • Marty Van Duyn t ar ry. M. • N. _ `� Assistant City Man. er City Manager Staff Report Subject: Resolution Authorizing a Remittance Agreement Between The City and the Redevelopment Agency Page 5 of 5 Attachments: City Resolution Agency Resolution Ordinance 1691398.1 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO APPROVING A REMITTANCE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34194.2 WHEREAS, the South San Francisco Redevelopment Agency ( "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 authority granted under the CRL, the City Council ( "City Council ") of the City of South San Francisco ( "City ") has adopted and amended, from time to time, Redevelopment Plans (the "Redevelopment Plans ") for the Shearwater Project Area, Downtown Central Project Area, Gateway Project Area and the El Camino Project Area (the "Project Areas"); and WHEREAS, the Agency has the responsibility to implement the Redevelopment Plans in accordance with the CRL; and WHEREAS, the City Council has adopted or will adopt, pursuant to Part 1.9 of Division 24 of the Health and Safety Code (commencing with Section 34192), an Ordinance as specified in Section 34194 (the "Ordinance "), agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code and to make certain annual remittances to the San Mateo County Auditor - Controller ( "Remittances "), subject to a reservation of rights as provided in the Ordinance; and WHEREAS, pursuant to Health and Safety Code Section 34194.2, the City and the Agency may enter into an agreement whereby the Agency will transfer a portion of its tax increment to the City in an amount not to exceed the Remittances, for the purpose of financing activities within the Project Areas that are related to accomplishing the Agency goals; and WHEREAS, the City has determined that it would be beneficial to enter into a Remittance Agreement with the Agency (the "Agreement ") a copy of which is attached to the Staff Report accompanying this Resolution; and WHEREAS, the Staff Report accompanying this Resolution, the Agreement, and the Ordinance provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO that it hereby: -1- Section 1. Approves, subject to the adoption of the Ordinance pursuant to Health and Safety Code Section 34194, the Agreement and authorizes the Mayor to execute the Agreement on behalf of the City, substantially in the form of the Remittance Agreement attached to the accompanying Staff Report, and to undertake such actions and to execute such additional instruments as may be necessary or desirable in order to carry out the intent of this Resolution. Section 2. Finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that the Agreement 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 San Mateo in accordance with CEQA Guidelines. Section 3. Declares that if any provision, sentence, clause, section or part of this Resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remaining parts. Section 4. Authorizes the Finance Director to make accounting adjustments to the 2010 -11 Budget for the Redevelopment Agency and the Public Improvement Agreement Fund that are consistent with the Council's intention to authorize the continuation of the Redevelopment Agency under Health and Safety Code Section 34194.2, * * * * * * I hereby certify that the foregoing Resolution was adopted by the City Council of the City of South San Francisco at the special meeting held on the day of , 2011 by the following vote: AYES: NOES: ABSTENTIONS: ABSENT: Attest: Krista Martinelli City Clerk 1691357.1 -2- RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO APPROVING A REIMTTANCE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE SOUTH SAN F RANCISCO REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34194.2 WHEREAS, the South San Francisco Redevelopment Agency ( "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 authority granted under the CRL, the City Council ( "City Council ") of the City of South San Francisco ( "City ") has adopted and amended, from time to time, Redevelopment Plans (the "Redevelopment Plans ") for the Shearwater Project Area, Downtown Central Project Area, Gateway Project Area and the El Camino Project Area (the "Project Areas "); and WHEREAS, the Agency has the responsibility to implement the Redevelopment Plans in accordance with the CRL; and WHEREAS, the City Council has adopted or will adopt, pursuant to Part 1.9 of Division 24 of the Health and Safety Code (commencing with Section 34192), an Ordinance as specified in Section 34194 (the "Ordinance "), agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code and to make certain annual remittances to the San Mateo County Auditor - Controller ( "Remittances "), subject to a reservation of rights as provided in the Ordinance; and WHEREAS, pursuant to Health and Safety Code Section 34194.2, the City and the Agency may enter into an agreement whereby the Agency will transfer a portion of its tax increment to the City in an amount not to exceed the Remittances, for the purpose of financing activities within the Project Areas that are related to accomplishing the Agency goals; and WHEREAS, the City has determined that it would be beneficial to enter into a Remittance Agreement with the Agency (the "Agreement ") a copy of which is attached to the Staff Report accompanying this Resolution; and WHEREAS, the Staff Report accompanying this Resolution, the Agreement, and the Ordinance provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO that it hereby: -3- Section 1. Approves, subject to the adoption of the Ordinance pursuant to Health and Safety Code Section 34194, the Agreement and authorizes the Executive Director to execute the Agreement on behalf of the Agency, substantially in the form of the Remittance Agreement attached to the accompanying Staff Report, and to undertake such actions and to execute such additional instruments as may be necessary or desirable in order to carry out the intent of this Resolution. Section 2. Finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that the Agreement 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 San Mateo in accordance with CEQA Guidelines. Section 3. Declares that if any provision, sentence, clause, section or part of this Resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remaining parts. Section 4. Authorizes the Finance Director to make accounting adjustments to the 2010 -11 Budget for the Redevelopment Agency and the Public Improvement Agreement Fund that are consistent with the Agency's intention to authorize the continuation of the Redevelopment Agency under Health and Safety Code Section 34194.2, * * * I hereby certify that the foregoing Resolution was adopted by the Redevelopment Agency of the City of South San Francisco at the special meeting held on the day of 2011 by the following vote: AYES: NOES: ABSTENTIONS: ABSENT: Attest: Krista Martinelli Clerk 1691360.1 -4- ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, 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 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, the City Council of the City of South San Francisco ( "City ") approved and adopted redevelopment plans (collectively, the "Redevelopment Plans ") for the Shearwater Project Area, the Downtown Central Project Area, the Gateway Project Area and the El Camino Project Area (collectively, the "Project Areas"); WHEREAS, the Redevelopment Agency of the City of South San Francisco ( "Agency ") is engaged in activities to execute and implement the Redevelopment Plans pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ( " WHEREAS, since adoption of the Redevelopment Plans, the Agency has undertaken redevelopment projects in the Project Areas to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; WHEREAS, over the next few years, the Agency hopes to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Areas' economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure, to name a few; WHEREAS, as part of the 2011 -12 State budget bill, the California Legislature has enacted and the Governor has signed, companion bills ABX1 26 and ABX1 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; WHEREAS, specifically, ABX1 26 prohibits redevelopment agencies from taking numerous actions, effective immediately and purportedly retroactively and additionally provides that redevelopment agencies are deemed to be dissolved as of October 1, 2011; WHEREAS, ABX1 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that 1691366.1 -5- community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor - controller; WHEREAS, under the threat of dissolution pursuant to ABX1 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011 -12 community remittance in the amount of $15,547,791, as well as the subsequent annual conununity remittances as set forth in the CRL; WHEREAS, the City reserves the right to appeal the California Director of Finance's determination of the Fiscal Year 2011 -12 community remittance, as provided in Health and Safety Code Section 34194; WHEREAS, an action challenging the constitutionality of ABX1 26 and ABX1 27 has been filed with the California Supreme Court on behalf of cities, counties and redevelopment agencies; WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that ABX1 26 and ABX1 27 are unconstitutional; WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of ABX1 26 and ABX1 27; WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of ABX1 26 and ABX1 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, 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 Alternative Voluntary Redevelopment Program. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by ABX1 27. 1691366.1 -6- Section 3. Payment Under Protest. Except as set forth in Section 4, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code section 34194 et seq. Section 4. Effect of Stay or Determination of Invalidity. The City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of ABX1 26 and ABX1 27 or determines that ABX1 26 and ABX1 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or the time for filing an appeal therefrom has lapsed. Any community remittance 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 that ABX1 26 and ABX1 27 are unconstitutional. If there is a final determination that ABX1 26 and ABX1 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. Section 5. Implementation. The City Council hereby authorizes and directs the City Manager to take all actions and execute all documents necessary to implement this Ordinance, including but not limited to notifying the San Mateo County Auditor - Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in ABX1 27. Section 6. 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 CRL, the City will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the City in amounts not to exceed the annual community remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets to make the remittance payments. Section 7. 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 San Mateo in accordance with CEQA Guidelines. 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 this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. 1691366.1 -7- Section 9. Certification; Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of South San Francisco, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. Section 10. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption. INTRODUCED and ordered posted/published this day of , 2011. ADOPTED this day of , 2011 by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney 1691366.1 -8-