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HomeMy WebLinkAbout011706 RESO CDA Amending Sec 10.5 Agency By-LawsREQUEST FOR AGENCY ACTION Edonaon I., AGENCY BOARD MEETING DATE: JANUARY 17, 2006 TITLE RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY AMENDING SECTION 10.5 OF THE AGENCY'S BY —LAWS le e � I- AGENCY SECRETARY USE ONLY: APPROVED q"9:1 (fl3tl hAare2� /I/n l ET As Recommended C'h«5f/ ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION C�pppe'D� 2 Adopt a resolution amending Section 10.5 of the Agency's By -Laws. DISCUSSION On April 16, 1985, the Agency added Section 10.5 to its By -Laws requiring the affirmative vote of at least five (5) Agency Board members to approve any contract that directly or indirectly obligates the Agency to acquire any interest in real property. The intent of this provision was to prevent a situation where only the majority of the Agency members approved a development agreement that contemplated potential future exercise of eminent domain. State law requires the affirmative vote of at least five (5) Agency Board members to exercise eminent domain. If the Agency adopted a development agreement with less than five votes and then failed to obtain the five votes on eminent domain, the Agency could potentially be exposed to risk for failure to perform all of the terms of the agreement. The vast majority of real estate agreements approved by the Agency are entirely voluntary and do not contemplate the exercise of the power of eminent domain. Staff is recommending an amendment to Section 10.5 of the By -Laws, which would retain the five vote requirement only for agreements requiring future consideration of a resolution of necessity pertaining to an eminent domain action. All other Agency actions shall be in accordance with Section 11 of the By -Laws. 4 -1 Resolution of the CRA Amending Section 10.5 of the Agency's By -laws January 17, 2006 Page 2 FISCAL IMPACT There ),5-ro fiscal impact associated with this action. Patricia C. Whitaker Executive Director PCW /PH /mlr H: \ACTIONS \2006 CRA \ResoAmendSec10.5ofAgencyBylaws 1- 17- 06.doc 4 -2 RESOLUTION NO. CRA 2006- 002- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING SECTION 10.5 OF THE AGENCY'S BYLAWS. BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Board of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. On April 16, 1985, the Agency added Section 10.5 to its Bylaws requiring the affirmative vote of at least five (5) Agency Board members to approve any contract which directly or indirectly obligates the Agency to acquire any interest in real property. B. This provision was added to prevent only a majority of the Agency members from approving an agreement, such as a disposition and development agreement or owner participation agreement that contemplated potential future exercise of eminent domain which, by State law, would require the affirmative vote of at least five (5) Agency Board members. In that situation, the purpose of such agreement could be severely frustrated, potentially exposing the Agency to risk for failure to perform all of the terms. C. The vast majority of real estate agreements approved by the Agency are entirely voluntary and do not contemplate the exercise of the power of eminent domain. In several project areas the Agency's powers of condemnation have expired rendering application of Section 10.5 unnecessary. D. The Agency Board supports and reaffirms the policy underlying Section 10.5 that agreements requiring future consideration of a resolution of necessity be supported by at least as many Agency Board members as necessary to adopt such resolution in the future. E. Seven (7) days advance written notice of said amendment has been given to the members of the Agency by the Executive Director of the Agency. 4-3 Resolution No. CRA 2006 -XXX Page 1 of 3 Section 2. Section 10.5 of the Bylaws of the Community Redevelopment Agency of the City of Santa Ana is hereby amended to read as follows: "Section 10.5 Special voting requirement for certain land acquisition contracts. Any motion or resolution to approve a contract that requires or obligates the Agency to consider a resolution of necessity for the acquisition of real estate through the exercise of the Agency's powers of eminent domain requires the affirmative vote of at least five (5) members of the Agency." Section 3. This Resolution shall take effect immediately upon its adoption by the Agency Board., The Secretary of the Agency shall attest to and certify the vote adopting this Resolution. ADOPTED this day of APPROVED AS TO FORM: Joseph W. Fletcher Agency General Counsel By: AYES: NOES: ABSTAIN: NOT PRESENT Boardmembers Boardmembers Boardmembers Boardmembers Resolution No. CRA 2006 -XXX 2006. Miguel A. Pulido Chair 4 -4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2006- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Recording Secretary Community Redevelopment Agency City of Santa Ana 4-5 Resolution No. CRA 2006 -XXX Page 3 of 3 THIS PAGE LEFT INTENTIONALLY BLANK