Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 6, 2011 <br />TITLE: <br />ADOPTION OF ORDINANCE TO <br />COMPLY WITH AND PARTICIPATE IN <br />ALTERNATIVE VOLUNTARY <br />REDEVELOPMENT PROGRAM PER PART <br />1.9 OF DIVISION 24 OF CALIFORNIA <br />HEALTH & SAFETY CODE <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 15t Reading <br />? Ordinance on 2"d Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance whereby the City shall elect to comply with and participate in the alternative <br />voluntary redevelopment program contained in Part 1.9 of Division 24 of the California Health and <br />Safety Code. <br />DISCUSSION <br />On August 24, 2011, the City Council and Redevelopment Agency ("Agency") took the necessary <br />actions to comply with ABX1 26 & 27, the two recently enacted bills that impact redevelopment <br />agencies throughout the State. ABX1 26, which is referred to as the "Dissolution Bill," suspends <br />most redevelopment agency activities effective immediately and directs the dissolution of <br />redevelopment agencies and the designation of successor agencies. The bill also required <br />agencies to adopt a resolution establishing an Enforceable Obligation Payment Schedule (EOPS) <br />by August 28, 2011, which Santa Ana has complied with. The second bill, ABX1 27, which is <br />referred to as the "Continuation Bill," creates an alternative voluntary redevelopment program that <br />allows the continued existence of redevelopment agencies if the legislative body of the city or <br />county makes annual "community remittances" to school districts and special districts. The City <br />adopted a resolution on August 24, initiating the process for the "Continuation Ordinance" to be <br />enacted by November 1, 2011. <br />As a result of the State's efforts to take $1.7 billion from redevelopment agencies through ABX1 27 <br />in FY 2011-12 and an additional $400 million each subsequent year, it is recommended that the <br />City Council consider the adoption of a "Continuation Ordinance" in order to participate in the <br />alternative voluntary redevelopment program. This action would allow Santa Ana to avoid <br />dissolution of the Agency and to continue to carry out provisions of the Redevelopment Law. The <br />adoption of this ordinance will result in a continuation payment of $20,489,170 for FY 2011-2012 <br />due in two equal payments on January 15, 2012 and May 15, 2012, and annual payments of <br />approximately $5 million thereafter. Funds for the FY 2011-12 payments will be available through <br />5OA-1