RDA Resolution 2011-033RESOLUTION NO. RA 2011 - 033
A RESOLUTION OF THE LA QUINTA
REDEVELOPMENT AGENCY ADOPTING A
PRELIMINARY DRAFT OF THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE PURSUANT
TO CALIFORNIA HEALTH AND SAFETY CODE
SECTION 34169(h)
WHEREAS, the City Council of the City of La Quinta ("City Council" or "City,"
as applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project
Area No. 1 ("Project Area No. 1" or "Project Area No. 1 Redevelopment Plan," as
applicable) on November 29, 1983, by Ordinance No. 43, as amended on December
20, 1994, by Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on
March 16, 2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; and
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is engaged in
activities to execute and implement the Project Area No. 1 Redevelopment Plan and
the Project Area No. 2 Redevelopment Plan (collectively, the "Redevelopment
Plans") pursuant to the provisions of the California Community Redevelopment Law
(Health and Safety Code § 33000, et seq.) ("CRL"); and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, companion bills AB x1 26 and AB x1
27, requiring that each redevelopment agency be dissolved unless the community
that created it enacts an ordinance electing to participate in an "Alternative
Voluntary Redevelopment Program" and committing the community to make certain
annual remittance payments to the county auditor -controller; and
WHEREAS, on August 2, 2011, under the threat of dissolution pursuant to
AB x1 26, the City Council adopted Ordinance No. 491, pursuant to which it opted
in to the Alternative Voluntary Redevelopment Program contained in AB x1 27, and
agreed, subject to certain contingencies and reservations set forth therein, to make
the Fiscal Year 2011-2012 annual remittance payment, as well as the subsequent
annual remittance payments as set forth in the CRL; and
WHEREAS, an action challenging the constitutionality of AB x1 26 and AB
x1 27 has been filed in the California Supreme Court by the California
Resolution No. RA 2011-033
Adoption of Recognized Obligations Payment Schedule
Adopted: September20, 2011
Page 2
Redevelopment Association,, the League of California Cities, and two individual
cities; and
WHEREAS, on August 11 th, 2011, the Court (i) issued an order indicating
that it would exercise jurisdiction over the lawsuit, (ii) set an expedited briefing
schedule to allow it to decide the case before the first annual remittance payment
is due in January 2012, and (iii) stayed the effectiveness of all of the Continuation
Act, and all of the Dissolution Act except Chapter 1 of Part 1.8 thereof (with the
exception of Section 34167.5, which was stayed); and
WHEREAS, on August 17, 2011, the Court clarified that the stay issued on
August 11, 2011 applies to all of the Dissolution Act except Part 1.8 (e.g., Health
and Safety Code Sections 34161— 34169.5); and
WHEREAS, Health and Safety Code Section 34169 requires redevelopment
agencies that do not timely elect to participate in the Alternative Voluntary
Redevelopment Program to prepare and adopt, by September 30, 2011, a
preliminary draft of their "recognized obligation payment schedule" that lists all
obligations of the redevelopment agency that are enforceable within the meaning of
subdivision (d) of Section 34167 for the period of January 2012 through June
2012; and
WHEREAS, Health & Safety Code Section 34169 requires redevelopment
agencies to provide the preliminary draft of the "recognized obligation payment
schedule" to the successor agency, if one is established pursuant to Part 1.85 of
the Dissolution Act, so that pledges of revenues associated with enforceable
obligations of the former redevelopment agencies are honored; and
WHEREAS, in order to ensure the Agency's continued ability to operate and
make payments on its current obligations pending the Court's decision on the
legality of AB x1 26 and AB x1 27, the Agency has determined to adopt, under
protest, a preliminary draft of its recognized enforceable obligation payment
schedule (the "Schedule"); and
WHEREAS, the Agency's adoption of the Schedule is without prejudice to
the Agency's right to claim that the filing of a preliminary draft of its recognized
enforceable obligation payment schedule is not required, and the Agency reserves
the right to modify, supplement, or withdraw the Schedule; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
Agency, as follows:
Resolution No. RA 2011-033
Adoption of Recognized Obligations Payment Schedule
Adopted: September 20, 2011
Page 3
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Adoption of a Preliminary Draft of the Agency's Recognized Obligation
Payment Schedule . In order to enable the Agency to strictly comply with Health
and Safety Code Section 34169(h), and based on the Recitals set forth above, the
Agency hereby adopts the Schedule attached hereto as Exhibit A as the Agency's
preliminary draft of its recognized obligation payment schedule and directs the
Agency Secretary to provide a copy of the Schedule to the City, which would be
the successor agency to the Agency under Part 1.85 of the Dissolution Act.
Section 3. Adoption Under Protest. Agency hereby adopts the Schedule and
directs the provision of the Schedule to the City under protest and without
prejudice to the Agency's right to claim that the adoption and provision to the City
of the Schedule is not required, and the Agency hereby reserves the right to
modify, supplement, or withdraw the Schedule.
Section 4. Effect of Court Decision. Agency shall not be bound by the Schedule
in the event a court of competent jurisdiction determines that both AB x1 26 and
AB x1 27 are constitutional and therefore valid, or that both AB 1X 26 and AB x1
27 are unconstitutional and therefore invalid, and all appeals therefrom are
exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed.,
Section 5. Implementation. The Agency Board hereby authorizes and directs the
Executive Director to take any action and execute any documents necessary to
implement this Resolution.
Section 6. CEQA. The Agency Board finds, under Title 14 of the California Code
of Regulations, Section 15378(b)(4), that this Resolution is exempt from the
requirements of the California Environmental Quality Act ("CEQA") in that it is not
a "project," but instead consists of the continuation of a governmental funding
mechanism for existing projects and programs for which CEQA analysis has already
been conducted, and does not commit funds to any specific project or program.
Section 7. 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 which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Agency Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Resolution No. RA 2011-033
Adoption of Recognized Obligations Payment Schedule
Adopted: September 20, 2011
Page 4
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held this 20th of September, 2011, by the following vote,
to wit:
AYES: Agency Members Adolph, Evans, Franklin, Sniff, Chair Henderson
NOES: None
ABSENT: None
ABSTAIN: None
Terry Hand r on, Chairperson
La Quinta evelopment Agency
/VERONICAWNTECINO, CMC, Agency Secretary
,' La Quinta edevelopment Agency
=; (AGENCY SEAL)
APPROVED AS TO FORM:
M. KATHERINE JEN, Agency Counsel
La Quinta Redevelop ent Agency
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