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Ordinance 3034CITY OF ALAMEDA ORDINANCE NO. 3034 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALAMEDA, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE ALTERNATIVE VOLUNTARY 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 COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA WHEREAS, the Community Improvement Commission of the City of Alameda ( "CIC ") is a redevelopment agency organized and existing under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.) ( "CRL ") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Alameda ( "City Council" or "City," as applicable); and WHEREAS, pursuant to the CRL, the City Council approved and adopted the Community Improvement Plans ( "Plans ") for the Alameda Point Improvement Project on March 3, 1998, by Ordinance No. 2754, the Business and Waterfront Improvement Project on June 18, 1991, by Ordinance No. 2559 and the West End Community Improvement Project on July 5, 1983, by Ordinance No. 2141, all as amended to date (collectively, the "Projects "), and the CIC is vested with the responsibility for implementing and carrying out the Plans; and WHEREAS, the CIC is currently in the process of carrying out the goals and objectives of the Plans by continuing to: eliminate blight; increase, improve, and preserve the supply of affordable housing in the community; stimulate and expand economic growth and employment opportunities by revitalizing properties and businesses within the Projects; alleviate deficiencies in public infrastructure, and provide for the redevelopment and reuse of the closed former Alameda Naval Air Station; and WHEREAS, in connection with approval and adoption of the State Budget for Fiscal Year 2011 -12, the California Legislature has approved, and the Governor has signed (i) ABX1 26 (Stats. 2011, chap. 5, "ABX1 26 "), which immediately, and purportedly retroactively, suspends all otherwise legal redevelopment activities and incurrence of indebtedness, and dissolves redevelopment agencies effective October 1, 2011 (the "Dissolution Act "); and (ii) ABX1 27 (Stats. 2011, chap. 6, "ABX1 27 "), which allows communities to avoid the consequences of the Dissolution Act and continue their redevelopment agency if the community enacts an ordinance agreeing to comply with the alternative voluntary redevelopment program described in Section 2 of ABX1 27 adding Part 1.9 (commencing with section 34192) of Division 24 of the Health and Safety Code (the "Alternative Redevelopment Program "); and WHEREAS, the immediate suspension of activities and dissolution of the CIC under the provisions of ABX1 26 would result in the immediate suspension of CIC efforts and programs to eliminate blight, provide affordable housing, including at the Islander Motel site, provide economic assistance to businesses, and implement other programs which are assisting in the recovery of the City from the financial crisis and recession currently affecting the City and the State of California and thereby result in severe and unwarranted social and economic hardship to City residents, workers and businesses; and WHEREAS, because the City Council does not wish to immediately suspend activities of the CIC and wishes to continue to eliminate blight and promote economic development and affordable housing, the City Council has determined it is in the public interest of the City to take immediate action to participate in the ABX1 27 Alternative Redevelopment Program; and WHEREAS, the Alternative Redevelopment Program requires the participating communities to remit specific annual payments to the county auditor - controller for allocation to school entities and special districts; and WHEREAS, under the threat of dissolution pursuant to ABX1 26, and upon the contingencies and reservations set forth herein, the City shall participate in the Alternative Redevelopment Program and make the Fiscal Year 2011 -2012 community remittance, currently estimated to be $5.2 Million Dollars, as well as the subsequent annual community remittances as set forth in ABX1 27; and 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; and WHEREAS, City understands and believes that an action challenging the constitutionality of ABX1 26 and ABX1 27 will be filed on behalf of cities, counties and redevelopment agencies; and 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, in the event that there is a final determination that ABX1 26 and ABX1 27 are unconstitutional; and 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; and WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on the effectiveness of the Alternative 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, the City is the lead agency concerning this Ordinance pursuant to the California Environmental Quality Act (codified as Public Resources Code Section 21000 et seq) ("CEQA") and the State CEQA Guidelines; and WHEREAS, City staff has determined that this Ordinance is exempt from CEQA, pursuant to CEQA Guidelines Section 15378(b)(4), because the community remittances authorized hereunder are a government funding mechanism and fiscal activity, and do not involve any commitment to any specific project that may result in a potentially significant environmental impact; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. NOW, THEREFORE, the City Council of the City of Alameda does hereby ordain as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein. Section 2. Participation in the Alternative 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. 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. 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 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 any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Alameda 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 CIC is again authorized to enter into agreements under the CRL, the City will enter into an agreement with the CIC as authorized pursuant to Section 34194.2, whereby the CIC 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 that may result in a potentially significant environmental impact. Section 8. Notice of Exemption. The City Council hereby authorizes and directs that a Notice of Exemption be filed with the County Clerk of the County of Alameda, California, in accordance with CEQA Guidelines. Section 9. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at City Hall, 2263 Santa Clara Avenue, Room 380, Alameda, California 94501. The custodian for these records is Lara Weisiger, City Clerk. Section 10. Severabilit . 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. Section 11. Certification of Passage; Posting. The City Clerk will certify to the passage of this Ordinance by the City Council of the City of Alameda and a digest thereof shall be published once in the Official Newspaper of the City within three days after its adoption. Section 12. Findings. The adoption of this Ordinance is necessary for the immediate protection of the public peace, health and safety. In accordance with the Charter, Art. III. Sec. 12, and in order to protect the public peace, health and safety, the City Council of the City of Alameda finds and determines as follows: (a) ABX1 26 prohibits agencies from taking numerous actions, until the City Council adopts an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code, including but not limited to incurring any new monetary or legal obligations or expanding any existing monetary or legal obligations, entering into agreements with any person for any purpose or amending or modifying any existing agreements and taking any action with respect to a redevelopment plan; (b) Prior to the enactment of an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code, the CIC will be unable to continue efforts to eliminate and prevent blight, provide affordable housing, stimulate and expand economic growth within the Projects, create and develop local job opportunities and alleviate deficiencies in public infrastructure; (c) Blighting conditions within the Projects constitute threats to public peace, health and safety, that cannot be eliminated without CIC action, including but not limited to the use of CIC funds and authorization of community improvement projects and programs; (d) During the current economic crisis, the CIC must have the ability to act and continue the efforts set forth in (b) above. The CIC must have all tools available in order to eliminate and prevent blighting conditions, including implementation of the CIC's economic development, affordable housing and public improvement programs; and (e) The CIC is actively engaged in efforts to rehabilitate housing units, including at the Islander Motel site, to provide assistance for property improvements and economic development, to improve and correct inadequate and unsafe infrastructure, to provide for the redevelopment and reuse of the closed former Alameda Naval Air Station, and to provide safe and affordable housing. Adoption of this Urgency Ordinance will permit the CIC to continue these efforts immediately. Section 13. Effective Date. The City Council hereby declares, on the basis of the findings set forth above, that an emergency exists and that this Ordinance is necessary to preserve the public peace, health and safety. Accordingly, this Ordinance is adopted as an urgency ordinance and shall take effect and be in force immediately upon its introduction and adoption on July 19, 2011. ATTEST: Presiding Officer of the City Council Lara Weisiger, City Clerk City of Alameda 1, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 19th day of July, 2011, by the following vote to wit: AYES: Councilmembers Bonta, deHaan, Johnson, Tam and Mayor Gilmore — 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have set my hand and affixed the official seal of said City this 20th day of July, 2011. Lara Weisiger, City Clerk City of Alameda