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:
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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
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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:
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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
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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
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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
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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
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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
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